Agenda packet — San Carlos City Council, June 22, 2026 (part 4 of 5)

Alternatives
This work is a necessary request. As TDM becomes critical to the purpose and effectiveness of traffic mitigation, monitoring and compliance becomes a necessary function of the City’s operations.

Cost Summary
There will be an additional expense of $8,700. The City’s fee schedule includes reimbursement for TDM review and monitoring.

Priority
Tracking
Department
Priority 2
City Manager
Approved Y

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FY 2026-27 Mid-Cycle Budget Expense Amendment Page 2 of 2 Line Item Description Org Number Object Code Project code FY 26-27 Operating Expense (list detail description below)
New Intern 01191001 511020 8,700.00
Total Operating Costs $ 8,700.00
Offsetting revenue if applicable
Net Operating Costs $ 8,700.00

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June 22, 2026 Packet Pg. 839
SAN CARLOS FY2026-27 MID-CYCLE BUDGET

BASE BUDGET EXPENSE AMENDMENT PROGRAM CHANGE FORM
PROGRAM: 01640000-511020
REQUEST TITLE: Sustainability Intern
Request Summary
Sustainability is requesting a limited‑term summer intern to support focused outreach on sustainability and climate action to meet Council-adopted GHG reduction targets.

Factors Driving the Request for Change
Council’s Strategic Plan includes the objectives to a) plan and implement Council-approved greenhouse gas (GHG) reduction strategies and b) perform community engagement and outreach to promote sustainability initiatives Citywide. GHG emissions from buildings continue to be the second largest source of Citywide GHG emissions, after transportation. GHG Reduction Strategies 1 and 4 under City’s Climate Mitigation and Adaptation Plan (CMAP) promote the need to advance energy efficiency, conservation, and electrification in the City. Focused outreach is needed and the Sustainability intern will be specifically focused on single-family property owners. In addition to this focused outreach, the intern will assess impediments and opportunities for electrification, and create and promote relevant content. This will also include collaborating and partnering with local grassroots community groups and agencies that promote electrification which is in alignment with the CMAP GHG Reduction Strategy 4 and Implementation Strategy 2 under CMAP.

If this request is approved, City will be able to conduct focused outreach to promote the electrification of single-family homes and create updated resources to help property owners transition to electric appliances and equipment. The outreach may include a focused campaign through surveys, focus group meetings or an online workshop. The success of the measure would be residents engaged and resources created for single-family homes.

Alternatives
If not approved, the Senior Management Analyst would continue to do this work; however, implementation may take more time.

Cost Summary
There will be an additional expense of $8,700. There will be no cost savings or off-setting revenues from hiring an intern.

Line Item Description Org Number Object Code Project code FY 26-27 Operating Expense (list detail description below)
$8100 for bi-weekly salary for 3 months 01640000 511020 8,700.00 Total Operating Costs $ 8,700.00
Offsetting revenue if applicable
Net Operating Costs $ 8,700.00
Priority
Tracking
Department
Priority 3
City Manager
Approved Y

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June 22, 2026 Packet Pg. 840
CITY OF SAN CARLOS FY2026-27 MID-CYCLE BUDGET

BASE BUDGET EXPENSE AMENDMENT

PROGRAM CHANGE FORM
PROGRAM: 01791000 - Special Events
REQUEST TITLE: Funding Request for Community-Wide Diwali Event
Request Summary
Staff is requesting funding in Fiscal Year 2026-27 and in future years in the amount of $7,500 to support a community-wide Diwali celebration. Diwali, the Festival of Lights, is celebrated by many community members and aligns with the City’s goals of fostering cultural inclusion, community cohesion, and opportunities for residents to participate in diverse cultural experiences. This event would be free and open to the public and designed to highlight cultural performances, traditional arts, family activities, and food vendors.

Factors Driving the Request for Change
 Supports the City’s goal of offering diverse, accessible, and community‑building programming.  Funding needed for performers, staging, activities, and marketing to deliver a high‑quality event.  Without funding, the event would be limited in scope, cultural representation, and community impact.  If approved, the event will be able to deliver stronger community engagement and cultural inclusion, a higher‑quality event with broader attendance, and supports local cultural groups, performers, and vendors.

Alternatives
Alternatives to this request is to not approve funding for a community-wide Diwali event or to fund the event at a lesser amount.

Cost Summary
 There will be an additional expense of $7,500 annually. The are no off-setting revenues to offset the costs.

Line Item Description Org Number Object Code Project code FY 26-27 Operating Expense (list detail description below)
Special Event Field and Program Supplies 01791000 520205 CULTR 7,500.00 Total Operating Costs $ 7,500.00
Offsetting revenue if applicable
Net Operating Costs $ 7,500.00
Priority
Tracking
Department
Priority 1
City Manager
Approved Y

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June 22, 2026 Packet Pg. 841
CITY OF SAN CARLOS FY2026-27 MID-CYCLE BUDGET

BASE BUDGET EXPENSE AMENDMENT

PROGRAM CHANGE FORM
PROGRAM: 01711000 – Parks Maintenance
REQUEST TITLE: Increase Funding for Vegetation Management Program
Request Summary
This budget increase is requested to support the annual vegetation management program that is conducted in City-owned open space parks and parcels to reduce the threat of wildfire each spring.

Additionally, the funding request will support a biologist to conduct sensitive plant and species surveys to determine City is meeting CEQA requirements.

Factors Driving the Request for Change
 City Council established an annual vegetation management program in 2018  Costs of the contract have exceeded the annual CPI budget increases  This program reduces fire risk and threats in City-owned parks and parcels and adjacent homes  Is this request directly attributes to the Strategic Plan Goal, “Climate Change Mitigation, Adaptation, and Resilience”
Alternatives
An alternative to this request is to reduce the program scope of work, therefore reducing costs.

Cost Summary
There will be an additional expense of $40,000 annually. There are no off-setting revenues.

Line Item Description Org Number Object Code Project code FY 26-27 Operating Expense (list detail description below)
Park Maintenance Prof Services 01711000 520320 MITIG 40,000.00 Total Operating Costs $ 40,000.00
Offsetting revenue if applicable
Net Operating Costs $ 40,000.00
Priority
Tracking
Department
Priority 2
City Manager
Approved Y

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June 22, 2026 Packet Pg. 842
CITY OF SAN CARLOS FY2026-27 MID-CYCLE BUDGET

BASE BUDGET EXPENSE AMENDMENT

PROGRAM CHANGE FORM
PROGRAM: 01791000- Special Events
REQUEST TITLE: Funding Request for Downtown Activation
Programming
Request Summary
Staff are requesting funding in Fiscal Year 2026-27 and in future fiscal years in the amount of $30,000 to support downtown activation. Parks and Recreation staff will plan and coordinate programs and events that are free and open to the public and are designed to highlight bring community together, support downtown through redevelopment, and activate public places.

Factors Driving the Request for Change
 Supports the City Council’s strategic goal to activate the Downtown core during the Downtown Revitalization projects.
 Funding needed for performers, activities, events, and marketing.  City Council added $30,000 to Special Events budget in Fiscal Year 2025-26 for downtown activation programming.

Alternatives
Alternatives to this request is to not approve funding for downtown activation programs and events.

Cost Summary
There will be an additional expense of $30,000 annually. There are no off-setting revenues Line Item Description Org Number Object Code Project code FY 26-27 Operating Expense (list detail description below)
Special Event Professional Services 01791000 520320 30,000.00 Total Operating Costs $ 30,000.00
Offsetting revenue if applicable
Net Operating Costs $ 30,000.00
Priority
Tracking
Department
Priority 3
City Manager
Approved Y

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June 22, 2026 Packet Pg. 843
FY 2024

REVISED
FY 2024

AUDITED
FY 2025

REVISED
FY 2025

AUDITED
FY 2026

REVISED
FY 2026

PROJECTIONS
FY 2027

REVISED
FY 2027

PROPOSED

REVISED

ESTIMATED BEGINNING FUND BAL
Unrestricted $ 2,878,730 $ 2,878,730 $ 2,729,714 $ 2,729,714 $ 2,493,307 $ 2,493,307 $ 2,611,966 $ 2,611,966 Reserved or restricted 51,593,531 51,593,531 56,255,323 56,255,323 60,316,614 60,316,614 49,901,282 49,901,282 TOTAL BEGINNING FUND BALANCE $ 54,472,261 $ 54,472,261 $ 58,985,037 $ 58,985,037 $ 62,809,921 $ 62,809,921 $ 52,513,248 $ 52,513,248 Business Registration 1,265,900 1,342,096 1,316,600 1,855,681 1,368,700 1,800,000 1,422,800 1,862,800 Charges for Current Services 5,122,800 6,212,220 5,167,550 6,940,899 6,678,400 6,202,500 6,878,600 6,878,600 Fines & Forfeitures 319,000 159,740 328,700 135,981 168,600 242,500 173,600 198,600 From Other Agencies 11,200 158,591 11,600 92,155 12,000 86,400 12,400 12,400 Licenses & Permits 2,589,800 4,210,068 2,667,500 4,010,313 3,213,500 3,258,700 3,309,900 3,309,900 Other Revenue 931,600 4,184,624 834,400 1,322,802 754,000 1,365,300 777,350 814,850 Other Tax 2,101,100 2,326,044 2,121,400 2,432,702 2,276,400 2,276,400 2,344,700 2,344,700 Property Tax 17,980,000 18,553,488 19,464,800 19,155,502 20,970,400 20,307,700 22,151,800 21,751,800 Sales Tax 13,063,900 12,491,208 13,330,670 12,232,053 12,519,200 12,219,200 12,925,800 12,720,800 Transient Occupancy Tax 4,200,000 3,422,950 4,468,000 3,787,802 4,350,000 4,000,000 4,619,500 4,619,500 Use of Money & Property 2,974,500 8,282,668 3,234,700 8,627,473 4,814,200 4,814,200 4,842,200 4,842,200 PAMF Project 868,500 868,462 890,170 890,174 912,400 912,400 935,200 935,200 Vehicle in Lieu 3,911,000 3,659,037 3,407,000 4,632,029 3,611,400 4,910,250 3,828,100 3,828,100 TOTAL REVENUES 55,339,300 65,871,197 57,243,090 66,115,566 61,649,200 62,395,550 64,221,950 64,119,450

EXPENDITURES
Salaries & Benefits 20,211,450 17,926,648 21,169,055 19,421,739 23,375,625 21,551,673 24,269,925 24,263,525 Public Safety Legacy Obligations 3,470,100 3,392,906 3,797,500 3,808,356 4,223,800 4,235,700 4,886,600 4,886,600 Operating Expenditures 35,371,431 32,968,081 36,965,155 34,661,897 39,286,000 38,608,650 40,520,895 40,836,695 Capital Outlay 183,100 65,783 188,700 30,455 183,900 172,300 200,300 200,300 TOTAL EXPENDITURES 59,236,081 54,353,418 62,120,410 57,922,447 67,069,325 64,568,323 69,877,720 70,187,120

TRANSFERS
General Transfers In From Other Funds 712,400 712,400 855,800 1,066,462 870,500 870,500 901,300 901,300 Allocations In From Other Funds 4,182,300 4,182,300 4,482,700 4,482,700 5,366,900 5,366,900 5,527,900 5,527,900 Allocations Out to Other Funds (589,700) (589,700) (607,400) (607,400) (902,300) (902,300) (942,500) (942,500) General Transfers out (460,000) (460,000) (460,000) (460,000) (360,000) (360,000) (371,000) (371,000) TOTAL TRANSFERS (NET) $ 3,845,000 $ 3,845,000 $ 4,271,100 $ 4,481,762 $ 4,975,100 $ 4,975,100 $ 5,115,700 $ 5,115,700 TOTAL CHANGE IN OPERATING FUNDS $ (51,781) $ 15,362,778 $ (606,220) $ 12,674,881 $ (445,025) $ 2,802,327 $ (540,070) $ (951,970)

OTHER SOURCES (USES) OF FUNDS
Transfer Capital Reserve (7,850,000) (7,850,000) (4,850,000) (4,850,000) (13,099,000) (13,099,000) (7,000,000) (12,000,000) One-time paydown of Unfunded (3,000,000) (3,000,000) (4,000,000) (4,000,000) TOTAL OTHER SOURCES (USES) OF FUNDS (10,850,000) (10,850,000) (8,850,000) (8,850,000) (13,099,000) (13,099,000) (7,000,000) (12,000,000) NET CHANGE IN FUND BALANCE $ (10,901,781) $ 4,512,778 $ (9,456,220) $ 3,824,881 $ (13,544,025) $ (10,296,673) $ (7,540,070) $ (12,951,970)

GENERAL FUND BALANCE
Unrestricted $ 1,881,422 $ 2,729,714 $ 4,016,136 $ 2,493,307 $ 1,791,869 $ 2,611,966 $ 1,569,299 $ 1,904,801 Restricted Fund Balances
Non-spendable Fund Balance 1,835,629 2,231,946 1,060,629 2,536,503 1,637,946 1,637,946 1,637,946 837,946 Economic Uncertainty Reserve 10,070,134 9,240,082 10,518,757 9,846,816 11,401,785 10,976,615 11,879,212 11,931,810 Strategic Property Reserve 7,191,795 10,191,795 10,191,795 12,191,795 12,191,795 7,144,221 7,144,221 7,144,221 Assigned Fund Balance
Unfunded Liabilities 4,000,000 7,000,000 3,000,000 3,000,000 2,600,000 3,000,000 2,600,000 2,600,000 Strategic Property Reserve 3,000,000 2,000,000 - 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Facilities and Infrastructure 15,591,500 25,591,500 20,741,500 30,741,500 17,642,500 25,142,500 18,142,500 13,142,500 Reserved or restricted 41,689,058 56,255,323 45,512,681 60,316,614 47,474,026 49,901,282 43,403,879 37,656,477 TOTAL ENDING FUND BALANCE $ 43,570,480 $ 58,985,039 $ 49,528,817 $ 62,809,921 $ 49,265,896 $ 52,513,248 $ 44,973,178 $ 39,561,278

CITY OF SAN CARLOS

GENERAL FUND SUMMARY BUDGET

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June 22, 2026 Packet Pg. 844
Note: totals may not add due to rounding
FY 2025

AUDITED
FY 2026

REVISED
FY 2026

PROJECTED
FY 2027

REVIISED
FY 2028

FORECAST
FY 2029

FORECAST
FY 2030

FORECAST
FY 2031

FORECAST
FY 2032

FORECAST
FY 2033

FORECAST
FY 2034

FORECAST
FY 2035

FORECAST
FY 2036

FORECAST
FY 2037

FORECAST

ESTIMATED BEGINNING FUND BALANCE
Unrestricted $ 2,730 $ 2,493 $ 2,493 $ 2,612 $ 1,905 $ 2,251 $ 1,760 $ 1,834 $ 1,823 $ 1,473 $ 1,348 $ 1,452 $ (473) $ (2,121) Reserved or restricted 56,255 60,317 60,317 49,901 37,656 33,482 30,593 26,978 23,375 20,150 16,940 14,803 15,932 17,151 TOTAL BEGINNING FUND BALANCE $ 58,985 $ 62,810 $ 62,810 $ 52,513 $ 39,561 $ 35,733 $ 32,353 $ 28,812 $ 25,197 $ 21,623 $ 18,288 $ 16,254 $ 15,458 $ 15,030 Business Registration 1,371 1,369 1,800 1,863 1,986 2,046 2,107 2,171 2,236 2,303 2,372 2,443 2,516 2,592 (a) Charges for Current Services 6,941 6,678 6,203 6,879 7,021 7,232 7,448 7,671 7,901 8,137 8,381 8,632 8,890 9,156 (b) Fines & Forfeitures 136 169 243 199 205 211 217 224 231 238 245 252 260 268 (c) From Other Agencies 92 12 86 12 13 13 14 14 14 15 15 16 16 17 (d) Licenses & Permits 4,010 3,214 3,259 3,310 3,409 3,511 3,617 3,725 3,837 3,952 4,071 4,193 4,319 4,448 (e) Other Revenue 1,323 754 1,365 815 817 842 867 892 919 946 975 1,004 1,034 1,065 (f) Other Tax 2,433 2,276 2,276 2,345 2,415 2,488 2,562 2,639 2,719 2,800 2,884 2,971 3,060 3,152 (g) Property Tax 19,156 20,970 20,308 21,752 22,933 24,145 25,407 26,638 27,942 29,323 30,758 32,250 33,801 35,413 (h) Sales Tax 12,232 12,519 12,219 12,721 13,101 13,487 13,885 14,295 14,897 15,437 15,993 16,566 17,156 17,764 (i) Transient Occupancy Tax 3,788 4,350 4,000 4,620 4,894 5,941 6,119 6,303 6,492 6,687 6,887 7,094 7,307 7,526 (j) Use of Money & Property 8,627 4,814 4,814 4,842 4,861 4,956 4,964 4,956 4,973 4,983 5,106 5,034 5,011 5,023 (k) PAMF Project 890 912 912 935 959 983 1,007 1,032 1,058 1,085 1,112 1,140 1,168 1,197 (l) Vehicle in Lieu 4,632 3,611 4,910 3,828 4,058 4,301 4,559 4,833 5,123 5,430 5,756 6,102 6,468 6,856 (m) TOTAL REVENUES $ 65,631 $ 61,649 $ 62,396 $ 64,119 $ 66,672 $ 70,155 $ 72,774 $ 75,392 $ 78,341 $ 81,335 $ 84,555 $ 87,695 $ 91,005 $ 94,475

EXPENDITURES
Salaries & Benefits 19,422 23,376 21,552 24,264 25,299 26,304 27,216 28,015 28,841 29,683 30,544 31,428 32,248 33,177 (n) Public Safety Legacy Obligations 3,808 4,224 4,236 4,887 4,985 5,182 5,236 5,284 5,336 5,311 5,283 5,183 5,092 4,854 (o) Operating Expenditures 34,662 39,286 38,609 40,837 43,268 45,102 46,939 48,857 50,869 52,972 55,226 57,519 59,914 62,416 (p) Capital Outlay 30 184 172 200 206 212 219 225 232 239 246 253 261 269 (q) TOTAL EXPENDITURES $ 57,922 $ 67,069 $ 64,568 $ 70,187 $ 73,757 $ 76,800 $ 79,610 $ 82,381 $ 85,278 $ 88,204 $ 91,299 $ 94,384 $ 97,515 $ 100,716

TRANSFERS
General Transfers In From Other Funds 1,066 871 871 901 933 967 976 938 975 1,014 1,055 1,097 1,141 1,186 Allocations In From Other Funds 4,483 5,367 5,367 5,528 5,694 5,865 6,040 6,222 6,408 6,601 6,798 7,002 7,212 7,429 Allocations Out to Other Funds (607) (902) (902) (943) (981) (1,107) (1,140) (1,174) (1,209) (1,244) (1,281) (1,319) (1,358) (1,399) General Transfers out (460) (360) (360) (371) (389) (459) (582) (611) (811) (836) (861) (887) (914) (941) TOTAL TRANSFERS (NET) $ 4,482 $ 4,975 $ 4,975 $ 5,116 $ 5,257 $ 5,265 $ 5,295 $ 5,374 $ 5,364 $ 5,534 $ 5,711 $ 5,893 $ 6,081 $ 6,275 TOTAL CHANGE IN OPERATING FUNDS $ 12,190 $ (445) $ 2,802 $ (952) $ (1,829) $ (1,380) $ (1,541) $ (1,614) $ (1,574) $ (1,335) $ (1,034) $ (796) $ (429) $ 34

OTHER SOURCES (USES) OF FUNDS
Transfer Capital Reserve (4,850) (13,099) (13,099) (12,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (1,000) - - - One-time paydown of Unfunded (4,000) - - - - - - - - - - - - - TOTAL OTHER SOURCES (USES) OF FUNDS (8,850) (13,099) (13,099) (12,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (1,000) - - - NET CHANGE IN FUND BALANCE $ 3,340 $ (13,544) $ (10,297) $ (12,952) $ (3,829) $ (3,380) $ (3,541) $ (3,614) $ (3,574) $ (3,335) $ (2,034) $ (796) $ (429) $ 34

GENERAL FUND BALANCE
Unrestricted $ 2,493 $ 1,792 $ 2,612 $ 1,905 $ 2,251 $ 1,760 $ 1,834 $ 1,823 $ 1,473 $ 1,348 $ 1,452 $ (473) $ (2,121) $ (4,311) Non-spendable Fund Balance 2,537 1,638 1,638 838 638 638 638 338 188 38 38 38 38 38 Economic Uncertainty Reserve 9,847 11,402 10,977 11,932 9,957 10,368 9,553 8,650 7,675 6,615 5,478 6,607 6,826 7,050 Strategic Property Reserve 12,192 12,192 7,144 7,144 7,144 7,144 7,144 7,144 7,144 7,144 7,144 7,144 7,144 7,144 Assigned Fund Balance - - - - - - - - -
Unfunded Liabilities * 3,000 2,600 3,000 2,600 2,600 1,300 500 100 - - - - - - Strategic Property Reserve 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Facilities and Infrastructure 30,742 17,643 25,143 13,143 11,143 9,143 7,143 5,143 3,143 1,143 143 143 1,143 3,143 Reserved or restricted $ 60,317 $ 47,474 $ 49,901 $ 37,656 $ 33,482 $ 30,593 $ 26,978 $ 23,375 $ 20,150 $ 16,940 $ 14,803 $ 15,932 $ 17,151 $ 19,375 TOTAL ENDING FUND BALANCE $ 62,325 $ 49,266 $ 52,513 $ 39,561 $ 35,733 $ 32,353 $ 28,812 $ 25,197 $ 21,623 $ 18,288 $ 16,254 $ 15,458 $ 15,030 $ 15,063 Notes: Long term model reflects a portion of the Unassgined Fund Balance to balance the operating expenses. Planned large developments should close this gap but the timing is uncertain so have not been forecasted.

The Assigned Fund Balance reserve will be used to offset the legacy costs of the former Belmont San Carlos Fire Department in FY 2024-25 through FY 2030-31 (a) Business Registration revenues assume increases of 4% based on the City's Municipal Code. (b) Current Charges for Services assumes 3% inflationary increases each year. This revenue can also fluctuate based on the timing of large development plan check fees expected. (c) Fines and Forfeiture revenues in FY 28 and beyond reflect 3% annual inflationary increases. (d) From Other Agencies is revenue received from grant funding which can vary from year to year. (e) Licenses and Permit revenue can fluctuate from year to year based on the timing of large development. Future years assume inflationary increases of 3%. (f) Other Revenues include cost reimbursements, donations and other miscellaneous receipts. Future years include inflationary increases of 3%. (g) Other taxes include franchise taxes from utilities and the forecasts are based on trend data. (h) Property tax projections are developed in conjunction with our 3rd party consultants. Revenues can vary from year to year based on completion of large developments. (i) Sales tax projections assume general inflationary increases and in conjunction with information from our 3rd party consultants. (j) Transient Occupancy Tax projections assume a return to business travel and increases in occupancy rates. (k) Other Uses of Money and Property include investment income and property leases. Future years assume inflationary increases and use of funds to cover capital expenditures. (l) Palo Alto Medical Foundation (PAMF) revenues are forecasted based on contracted amounts. (m) Vehicle in Lieu revenue projections are forecasted based on information from our third party consultants as well as the County of San Mateo. (n) Salaries and benefits assumes cost increases for pension and health care based on known and projected negotiated benefits. (o) Public Safety Obligations include costs related to the Belmont San Carlos Fire Department (BCSFD) (p) Operating expenses projections include known increases based on contractual obligations with our Public Safety contracts as well as inflationary assumptions ranging from 3-5%. (q) Capital outlay projections include normal inflationary increases of 3%.

CITY OF SAN CARLOS
GENERAL FUND LONG TERM FORECAST (in thousands) 11.a
June 22, 2026 Packet Pg. 845

CITY COUNCIL

STAFF REPORT
MEETING DATE: June 22, 2026
ITEM TITLE: Consideration of Adopting a Resolution Approving the Proposed Fiscal Year (FY) 2025-26 and 2026-27 Capital Fund Mid-Cycle Budget Adjustments.

RECOMMENDATION:

Staff recommend that the City Council adopt a Resolution approving the proposed FY 2025-26 and 2026-27 Capital Fund Mid-Cycle Budget adjustments.

FISCAL IMPLICATIONS:

Adoption of the Resolution will have the following impacts on the revised budget which includes all adjustments previously approved by the City Council:
 Wastewater Fund 0006 (“Sewer Fund”) FY 2025-26:
 No changes; and
 Wastewater Fund 0006 (“Sewer Fund”) FY 2026-27:
 Expenditures increased by an amount of $296,400, increasing the total appropriation budget to $28,694,200; and
 Gas Tax Fund 0016 (“Fund 16”) FY 2025-26:
 No changes; and
 Gas Tax Fund 0016 (“Fund 16”) FY 2026-27:
 Transfer in from the General Fund reduced by $2,000,000; and  General Capital Projects Fund 0025 (“Fund 25”) FY 2025-26:
 Expenditures reduced by $5,752,510, reducing the total appropriation budget to $16,726,207; and
 General Capital Projects Fund 0025 (“Fund 25”) FY 2026-27:
 Expenditures increased by an amount of $25,065,000, increasing the appropriation budget to $35,444,100
 Transfer in from General Fund increased by $5,000,000  Transfer out to Gas Tax Fund reduced by $2,000,000
 Transfer out to Park-In-Lieu Fund increased by $150,000; and

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June 22, 2026 Packet Pg. 846
 Park-in-Lieu Fund 0027 (“Fund 27”) FY 2025-26:
 Expenditures reduced by $200,000, reducing the total appropriation budget to $336,000; and
• Park-In-Lieu Fund 0027 (Fund 27”) FY 2026-27:
 Expenditures increased by $250,000, increasing the total appropriation budget to $400,000
 Transfer in from General Capital Fund increased by $150,000; and  Housing Fund 0029 and 0031 (“Fund 29” and “Fund 31”) FY 2025-26:
 Expenditures reduced by $454,100, reducing the total appropriation budget to $294,000; and
 Housing Fund 0029 and 0031 (“Fund 29” and “Fund 31”) FY 2026-27:
 Expenditures reduced by $467,700, reducing the total appropriation budget to $302,800.

The adoption of the Resolution will not impact the FY 2025-26 or FY 2026-27 Child Care Fund 0026 (“Fund 26”).

The table below summarizes the updated capital expenditure budget over the FY 2025-30 fiveyear CIP period inclusive of all changes made to the capital budget since original adoption in June 2025 and those proposed in the mid-cycle adjustments. Total expenditure over the five-year period is $274.3 million. Of this amount, $109.1 million will be funded from outside sources, leaving $165.2 million to be funded from city resources.

Project Category
Wastew ater
Fund Gas Tax Fund General Capital Fund Child Care Fund Parks in Lieu Housing Funds Capital Projects $ 60,214,000 $ 42,140,000 $ 162,440,000 $ 8,000,000 $ 1,486,000 $ - Outside Funding $ - $ (480,000) $ (108,540,000) $ - $ (80,000) $ - Net City Expenditure $ 60,214,000 $ 41,660,000 $ 53,900,000 $ 8,000,000 $ 1,406,000 $ - CAPITAL IMPROVEMENT PROGRAM REVISED BUDGET (FY 2025 - FY 2030) For additional financial overview information, please refer to the various summary sections in the attached proposed budget documents.

BACKGROUND:

Last June, the City Council adopted the FY 2025-30 Capital Improvement Plan (CIP), which was the result of an inclusive and interactive staff budget development process, a City Council Budget Study Session held on April 29, 2025, as well as Council direction given throughout the year.

Resolution 2025-057 set the appropriation (expense) levels for the CIP projects for both FY 2025- 26 and FY 2026-27, as well as the proposed expenditures for each of the following three years (FY 2027-28 through FY 2029-30). One of the primary advantages of a two–year budget cycle is the time savings realized by both staff in the preparation of the budget and the governing body, who must review and adopt the budget.

11.b
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The mid-cycle budget process provides an opportunity to review CIP project needs and make adjustments. Changes may be based on funding requirements and availability, direction provided by the Council during the second year of the adopted budget, and changes to project costs, as well as economic factors that influence development activities within the city.

There is sufficient fund balance in each of the capital funds to finance the proposed changes to the capital project budgets within this mid-cycle budget proposal.

ANALYSIS:

During the mid-cycle budget process, all departments managing CIP projects were involved in reviewing their previously adopted CIP projects and given an opportunity to propose changes to existing projects or recommend new ones. An iterative process narrowed down these changes, keeping in mind availability of funding and the need to maintain a balanced budget in all funds and the overall slow-down in development within the city that has delayed the inflow of related revenues.

The proposed Mid-Cycle Capital Improvement Program Appropriations Budget is provided in Attachments 2 and 3. Below is a summary, by fund, highlighting recommended changes to projects included in the FY 2025-30 Adopted CIP, as well as newly proposed projects. Detailed descriptions of these projects can be found in the attachments.

Wastewater Fund 06:

The Wastewater Fund is the City’s only Enterprise Fund. An Enterprise Fund is used to account for operations that are financed and operated like a private business enterprise. The Wastewater Fund, therefore, has the rates and fees necessary to fund sewage treatment, transmission, and major capital replacements and improvements to the sewer system.

FY Wastewater Fund Revised Budget
Accounting
Adjustments Requests Proposed Budget
FY 2025-26 Beginning Fund Balance 55,353,289 55,353,289 Operating Revenues 28,897,800 (4,620,000) - 24,277,800
Operating Expenses (9,085,800) - - (9,085,800)
Debt Service (5,447,000) - - (5,447,000)
Capital Expenditures (19,261,556) - 65,892 (19,195,665) Rolled-over Capital Project Budget (2,154,992) - - (2,154,992) Net Transfers and Allocations (5,429,700) - - (5,429,700) Total Change in Fund Balance (12,481,248) (4,620,000) 65,892 (17,035,357) FY 2025-26 Ending Fund Balance 42,872,041 38,317,932
FY 2026-27 Beginning Fund Balance 38,317,932 38,317,932 Operating Revenues 28,743,100 (3,740,000) - 25,003,100
Operating Expenses (9,557,800) 3,600 - (9,554,200)
Debt Service (6,965,000) - - (6,965,000)
Capital Expenditures (11,875,000) - (300,000) (12,175,000) Net Transfers and Allocations (5,603,200) - - (5,603,200) Total Change in Fund Balance (5,257,900) (3,736,400) (300,000) (9,294,300) FY 2026-27 Ending Fund Balance 33,060,032 29,023,632

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June 22, 2026 Packet Pg. 848
The Revised Budget in the table above includes all adjustments previously approved by the City Council. Accounting adjustments represent changes to assumptions in revenues and expenses based on historical trends, projections based on current economic trends and conditions, and information from our third-party consultants. The requests will be discussed further below.

The Wastewater Fund receives sewer connection fee revenue relating to development projects, the timing of which can be difficult to predict. This revenue is used to fund operations and capital projects. Due to delays in development projects within the city, staff has reduced the projected connection fee revenues by $4.6 million in FY 2025-26 and $3.7 million in FY 2026-27.

Staff recommend changes to the following previously approved projects:
• Sewer System CCTV Inspection (C1736). $400,000 is usually budgeted every two years for this project with no appropriation previously made in FY 2026-27 and $400,000 previously recommended in FY 2027-28. Staff now recommend a $1.1 million transfer in FY 2026-27 from the Annual Sewer System Rehabilitation Program (C9617) to support sewer system condition assessment work as outlined in the 2025 settlement with California River Watch. Another $750,000 is recommended to be transferred into the project from the Annual Sewer System Rehabilitation Program (C9617) in FY 2027-28 to continue supporting sewer system condition assessment work. • Generator Installation at Sewer Pump Stations (C2101). $250,000 was previously appropriated for this project to design transfer switches and permanent generators at three sanitary sewer pump stations located throughout the city. The locations include the Lower Crestview, Upper Crestview, and associated sanitary sewer pump stations. Staff now recommend an additional $300,000 appropriation in FY 2026-27 for the construction phase of this project.
• Annual Sewer System Rehabilitation Program (C9617). $7 million per year was previously approved for this project for the comprehensive repair, rehabilitation, and replacement program cited in the City’s Sewer Master Plan. To meet the stipulations for sewer system condition assessment and repair outlined in the 2025 settlement with California River Watch, $1.15 million is recommended to be transferred out of the project in FY 2026-27. Of that amount, $1.1 million will support the Sewer System CCTV Inspection Project (C1736) as previously highlighted, and $50,000 will support a new capital project to provide maintenance hole and force main assessments. In addition, $1.3 million is recommended to be transferred out of the project in FY 2027-28. Of that amount, $750,000 will support the Sewer System CCTV Inspection Project (C1736), and $550,000 will support the new maintenance hole and force main assessments project.

The following new Wastewater Fund project is recommended:
• NEW – Maintenance Hole and Force Main Assessments (C2601). This is a newly recommended project to make a full assessment of the entire sanitary sewer system network force mains and maintenance holes within five years, in line with the requirements of the 2025 settlement with California River Watch. It is recommended to be funded by a transfer of $50,000 in FY 2026-27 and $550,000 in FY 2027-28 from the Annual Sewer System Rehabilitation Program (C9617).

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Gas Tax Fund 16:

The Gas Tax Fund is used to account for revenue received and expended under the State of California, Street and Highways Code Sections 2106, 2107, and 2107.5. Revenues received must be expended for maintenance and construction related to streets.

The following Transfer In change is recommended:

To raise the streets’ pavement condition index (PCI) from 57 to 65 within the five-year CIP period, $39.5 million for the street resurfacing project was approved in the budget over the five years. It included funding from the General Capital Fund in the amount of $3.28 million in FY 2025-26 and $2.85 million in FY 2026-27 and FY 2027-28. Due to healthier than expected fund balances in the Gas Tax fund, staff now recommend reducing the transfer from the General Capital Fund in FY 2026-27, as shown in the table above under accounting adjustments, by $2 million, and moving the $2.85 million transfer previously approved for FY 2027-28 to FY 2028-29.

General Capital Projects Fund 25:

The capital project budget funds major one-time and on-going infrastructure improvement needs such as: resurfacing and sidewalk projects; traffic safety improvements; park construction and improvements; storm drainage improvements; facility improvements; and enterprise technology projects. Funds are often accumulated in this budget over a period of years and then spent when a sufficient amount of revenue is available to pay for desired projects.

FY Gas Tax Fund Revised Budget
Accounting
Adjustments Requests Proposed Budget
FY 2025-26 Beginning Fund Balance 21,064,828 21,064,828 Operating Revenues 2,097,600 - - 2,097,600
Outside Funding 120,000 - - 120,000
Capital Expenditures (9,100,000) - - (9,100,000)
Rolled-over Capital Project Budget (1,606,843) - - (1,606,843) Net Transfers and Allocations 6,754,100 - - 6,754,100
Total Change in Fund Balance (1,735,143) - - (1,735,143) FY 2025-26 Ending Fund Balance 19,329,685 19,329,685
FY 2026-27 Beginning Fund Balance 19,329,685 19,329,685 Operating Revenues 2,160,300 - - 2,160,300
Outside Funding 120,000 - - 120,000
Capital Expenditures (9,600,000) - - (9,600,000)
Net Transfers and Allocations 3,034,500 (2,000,000) - 1,034,500 Total Change in Fund Balance (4,285,200) (2,000,000) - (6,285,200) FY 2026-27 Ending Fund Balance 15,044,485 13,044,485

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June 22, 2026 Packet Pg. 850
As mentioned previously, the Revised Budget, shown in the above table, includes all adjustments previously approved by the City Council. Accounting adjustments represent changes to assumptions in revenues and expenses based on historical trends, and projections based on current economic trends and conditions.

The major sources of revenue for this fund are the franchise fee revenue received from the Shoreway Transfer Station, budgeted at $2.68 million in FY 2025-26 and $2.76 million in FY 2026- 27, with increases of $80,000 per year for in the next three fiscal years; and the Educational Revenue Augmentation Fund (ERAF) rebate, which reflects property taxes previously taken from the City by the state, budgeted at approximately $3 million per year. As shown in the table above, staff have increased the ERAF revenue by $600,000 in FY 2025-26 in line with projections.

The General Capital Fund also receives Traffic Impact Fees from development projects. The timing of these projects can be difficult to predict and depend on a number of variables outside the City’s control. Due to delays in development projects, projected revenues have been reduced by $2.4 million in FY 2025-26 and $1.1 million in FY 2026-27 The above table reflects these recommended accounting adjustments.

Total outside funding in FY 2026-27 includes an accounting adjustment in the amount of $11 million. This projected revenue includes grants awarded for various capital projects which are detailed in the sections below.

Net transfers and allocations include $10.25 million in transfers from the General Fund Facility/Infrastructure “Assigned” Reserve balance in FY 2025-26 and $7 million in FY 2026-27.

Staff now recommend an additional $5 million transfer in FY 2026-27 to fund infrastructure project needs. An additional $2 million in transfers is recommended in the following three years. The FY
Capital Improvement
Funds Revised Budget
Accounting
Adjustments Requests Proposed Budget
FY 2025-26 Beginning Fund Balance 30,409,463 30,409,463 Operating Revenues 6,135,600 600,000 - 6,735,600
Restricted Revenues 8,323,474 (2,397,520) - 5,925,954
Outside Funding 3,798,889 - - 3,798,889
Capital Expenditures (22,478,718) - 5,752,510 (16,726,208) Rolled-over Capital Project Budget (25,898,850) - - (25,898,850) Net Transfers and Allocations 11,687,877 - - 11,687,877 Total Change in Fund Balances (18,431,728) (1,797,520) 5,752,510 (14,476,737) FY 2025-26 Ending Restricted Fund Balance 12,259,051 9,721,277 FY 2025-26 Ending Unrestricted Fund Balance (281,316) 6,211,449 FY 2026-27 Ending Restricted Fund Balance 9,721,277 9,721,277 FY 2026-27 Ending Unrestricted Fund Balance 6,211,449 6,211,449 Operating Revenues 6,188,400 - - 6,188,400
Restricted Revenues 1,426,100 (1,090,000) - 336,100
Outside Funding 329,100 11,066,000 11,395,100
Capital Expenditures (10,379,100) - (25,065,000) (35,444,100) Net Transfers and Allocations 4,150,000 6,850,000 - 11,000,000 Total Change in Fund Balances 1,714,500 16,826,000 (25,065,000) (6,524,500) FY 2026-27 Ending Restricted Fund Balance 10,929,977 8,911,564 FY 2026-27 Ending Unrestricted Fund Balance 6,717,249 496,662

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June 22, 2026 Packet Pg. 851
transfers will go towards funding the Downtown Revitalization project, the Holly St./U.S. 101 Interchange and Pedestrian Overcrossing project, storm drain improvements, and various other infrastructure projects.

As noted above, the Gas Tax Fund balance is healthier than previously projected. Therefore, it is recommended that the transfer from originally planned from the General Capital Fund to the Gas Tax Fund be reduced by $2 million in FY 2026-27. This provides more funding toward infrastructure projects within the General Capital Fund.

Staff also recommend a $150,000 transfer from the General Capital Fund into the Park-in-Lieu Fund (Fund 27) in FY 2026-27 to help fund park projects and maintain a balanced budget (positive fund balance) in that fund.

These combined changes in transfers, totaling $6.85 million, are reflected in the above table under the FY 2026-27 accounting adjustments.

The subsections below detail recommended changes to projects in both FY 2025-26 and FY 2026-27 over and above those already approved by Council during the course of the year and included in the revised budget for the General Capital Fund.

Previously approved projects recommended to be moved to the Unfunded Project List to free up funds for higher priority projects:
• Wheeler Plaza Garage Parking Management System Expansion & Extension (C1753). The business offering the proposed Parking Management System is no longer in business so staff recommend moving $160,000 to unfunded for now until an alternative solution can be determined.
• 2nd Floor City Hall Remodel (C2414). Project is not ready to move forward. $1.75 million is recommended to be moved to unfunded for now.

To provide additional funding for high priority projects such as the Downtown Revitalization Project, Phase 1b – Centennial Plaza, staff identified several projects that have been completed or are nearing completion where there were budget savings, releasing budget funds for other projects. This action will be completed as part of the year-end process in FY 2025-26.

Projects completed or nearing completion allowing funds to be released in FY 2025-26 for other projects:
• Repave Asphalt Walking Path at Highlands Park (C1811). Project nearing completion. $250,000 is recommended to be released for other projects, leaving approximately $3,000 for remaining invoices.
• East Side Innovation District Pulgas Creek Watershed Study (C2208). Project complete. $55,478 budget can be released.
• City of San Carlos Centennial Celebration (C2309). Project complete. $156,000 budget can be released.
2 nd Floor Library Remodel (Phase II) (C2316). $1.5 million was originally appropriated

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June 22, 2026 Packet Pg. 852
for this project which is currently close to completion. $650,000 in budget savings have been identified and can be released for use by other projects leaving approximately $50,000 in the project for remaining invoices.
• Citywide Pole Banners (C2322). Project nearing completion. $70,000 is recommended to be released, leaving approximately $15,000 in unencumbered funds for remaining expenditures.

Staff recommend budget reductions in FY 2025-26 for the following previously approved projects to free up funds for higher priority projects:
• Upgrade Pedestrian Signal Heads to Countdown Pedestrian Signals (C1725). $830,000 was originally appropriated for this project, of which approximately $32,000 has been spent. Staff recommend moving $735,000 budget out to FY 2027-28 to free up funds for higher priority projects, leaving $63,000 in the project for ongoing activities and outstanding invoices.
• 5KV Streetlight Conversion (C1728). $335,000 was originally appropriated for this project, of which less than $5,000 has been spent to date. Staff recommend moving $330,000 budget out to FY2027-28 to free up funds for higher priority projects. • Installation of New EV Stations in Public Parking Lots (Downtown) (C2336). $858,200 was originally appropriated for this project. However, only $658,200 is needed, which will be fully funded by grants from the Metropolitan Transportation Commission (MTC) and West Light Energy. The residual $200,000 is recommended to be released for other projects.
• Belmont Creek Watershed Improvement (C9806). $550,000 was originally adopted in FY 2025-26. Staff recommend reducing this by $384,000, leaving a total of $434,000 when combined with the previously approved budget to be used for outstanding obligations. • Storm Channel Sediment Removal (C9828). $3.4 million was previously appropriated for this project, of which $1.2 million remains to be spent. Staff recommend moving out $650,000 from FY 2025-26 to FY 2027-28 to free up funds for other projects. This will leave approximately $550,000 in the project for ongoing activities.

Staff recommend other changes to the following existing projects:
• East Side Integrated Transportation and Streetscape Master Plan (C2207). Staff request $1.454 million in funding for this project in FY 2026-27, which is in addition to the $350,000 previously appropriated, to create an integrated transportation and streetscape master plan to convert Industrial Road into a functional green boulevard, with active transportation. The additional appropriation request will be partially offset by a $1.29 million grant recently awarded to the City to cover the cost of an expanded technical analysis of Industrial Road and to advance the approved design to 35% construction drawings.
• Library Elevator Upgrades (C2518). The existing library elevator requires an upgrade due to its age and lack of more modern components that offer improved efficiency, functionality and design. $300,000 was previously appropriated for this project. Staff

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June 22, 2026 Packet Pg. 853
request an additional $350,000 in FY 2025-26 to cover all costs. Staff expect the cost of the project to be reimbursed from the Library Excess Trust Fund. • Traffic Studies and Pilot Improvements (C2504). In addition to the $500,000 adopted budget for this project in FY 2025-26 and FY 2026-27, and $500,000 approved in each of the following three years (totaling $2.5 million), staff now request an additional $730,000 in FY 2026-27 and recommend $150,000 in each of the following three years to support the higher than anticipated volume of resident-initiated requests for citywide traffic improvements to address community safety concerns. • Adult Community Center Kitchen Remodel Design (C2515). Staff request $1.2 million for this project in FY 2026-27 to remodel the kitchen at the Adult Community Center which will include a full assessment of current program needs and analysis of deficiencies in operations due to facility design. The remodel may include a reconfiguration of the kitchen layout; better utilization of space; new kitchen equipment, including an industrial dishwasher, refrigerator and freezers, commercial grade sink and stations; and better functionality in the meal prep area. The cost for the project will be partially offset by available funds in the Parks and Recreation Donation Reserve in the amount of $331,478.

Downtown Renovation Plan Phase 1b – Centennial Plaza (C2525). Centennial Plaza represents the second part of Phase One of the Downtown Revitalization project. It was originally budgeted together with Phase 1a – Harrington Park (C2215) – with $3.7 million adopted for Phase 1a and $3.9 million for Phase 1b. At the February 9, 2026 Council meeting, the Phase 1b budget was transferred to Phase 1a to cover total contract costs plus contingency (totaling $7.2 million). Staff now request $10 million in FY 2026-27 for Phase 1b which represents the full extent of funding available for this phase of the project while maintaining a balanced General Capital Fund budget (positive fund balance). Construction is anticipated to begin once funding becomes fully available. • Holly St/US 101 Interchange and Pedestrian Overcrossing Long-Term (C9459). This project had $5 million in City funding appropriated for FY 2025-26 and FY 2026-27 in the adopted budget. Staff recommend a transfer of $791,000 in FY 2025-26 from this project to a secondary Holly St/US 101 Interchange and Pedestrian Overcrossing Mid-term project (detailed in the next section). Staff also request an additional appropriation for this project in the amount of $2.62 million in FY 2026-27, and recommend funding of $5 million in FY 2027-28, $75.281 million in FY 2028-29, and $12.5 million in FY 2029-30.

This project will convert the existing interchange to a partial cloverleaf design, realign the on- and off-ramps, and add new signalized intersections to eliminate weaving conflicts.

This long-term project will also construct a new overcrossing exclusively for pedestrians and cyclists. The project has secured grant funding from the San Mateo California Transportation Authority (SMCTA) Highway Program ($82.9 million), State Transportation Improvement Program ($12.5 million), and the Transportation HUD Appropriations bill ($500,000). A Department of Transportation BUILD grant is being sought to cover the outstanding $7 million funding gap to complete the project.

Staff recommend the following new General Fund Capital projects grouped by project category:

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Storm Drainage System
• NEW - Pulgas Creek Watershed - Native Planting Pilot Project. Staff requests $500,000 in FY 2026-27 to install and replace native plants, treating topsoil, irrigation, and monitoring runoff in the Pulgas Creek Watershed region of San Carlos at Big Canyon Park in line with the recommendations from the adopted Pulgas Creek Watershed Management Plan.

Safe Routes to School
None
Streets and Sidewalks
None
Traffic and Transit
• NEW - Holly St/US 101 Interchange and Pedestrian Overcrossing Mid-Term. This project will pave Holly Street in the project area, remove and relocate all bike lanes to the right pavement edge, install green conflict zones on bike lanes and install rectangular rapid flashing beacons (RRFB) in the crosswalks across US 101 ramps. Project completion is expected in FY 2028-29. As mentioned above, $791,000 is recommended to be transferred from the long-term project (C9459) for the City funding portion. The remainder of the project will be funded by a $7.1 million grant from SMCTA highway program.

Parks & Recreation
None
Planning
• NEW - Preservation of Ground Floor Commercial Uses. Staff requests $75,000 in FY 2026-27 to develop a comprehensive set of regulatory tools and potential financial incentives to preserve required ground-floor retail and commercial service uses within mixed-use development projects in the Downtown area.
• NEW - SB 79 Capacity Analysis. Staff requests $25,000 in FY 2026-27 to evaluate potential residential development capacity under two scenarios informed by the requirements of California Senate Bill 79 (SB 79) in the area surrounding the San Carlos Caltrain Station.
• NEW - Downtown Prosperity Team Programming and Support. $250,000 is requested in FY 2026-27 to focus on communications, business support, and Downtown activation during the Downtown Revitalization projects (Harrington Park Refresh and Centennial Plaza Transformation). The requested funds will be used to minimize construction impacts on residents, visitors, and businesses.

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Facilities, Technology, and Equipment
• NEW - Youth Center Zen Den Improvements. Staff recommend approving $30,000 in FY 2027-28 for a Youth Center “Zen Den” which will provide a quiet space for youth to destress and unwind during the After School Drop-In program and summer camps. The proposed area shares a wall with the active Game Room space which can be very noisy.

As a result, staff recommends the installation of sound proofing and sound absorbing panels in both spaces to reduce the noise spillover from the Game Room. This project is proposed to be funded by the Youth Center donation reserve. • NEW - Migration to sancarlos.gov Domain. Staff request $60,000 for this project in FY 2026-27 to migrate the City’s primary domain from cityofsancarlos.org to sancarlos.gov in compliance with California Assembly Bill 1637 (AB 1637). The project includes updating identity systems, migrating approximately 150 users, reconfiguring approximately 30 Single Sign-On (SSO) applications, coordinating with vendors, and ensuring continuity of critical services including Virtual Private Network (VPN), human resources, finance, and public-facing systems.
• NEW - Tyler Munis Financial System Upgrades. Staff request $35,000 for this project in FY 2026-27 to upgrade the current Tyler Technologies Enterprise ERP (Munis) financial system to implement the Tyler Capital Asset Management module and Tyler Content Manager. These modules will allow staff to move away from spreadsheet-based asset accounting and tracking, and paper-based accounts payable processes. This will reduce the likelihood of errors, reduce paper usage, and move invoice storage to the cloud. • NEW - Cost Allocation Plan and User Fee Study. Staff recommend $75,000 in funding for FY 2027-28 for this project, which will study and recalculate the City’s comprehensive overhead rates to ensure accurate accounting for the true cost of providing various programs and services, and to review the City’s user fees to ensure compliance with Proposition 218. The last study was performed in 2022. It is accepted best practice to perform a comprehensive study approximately every five years. • NEW - Enterprise Asset Management Implementation. Staff request $1 million for this project in FY 2026-27. The City is currently conducting a comprehensive process and technology assessment to support its transition to a modern enterprise asset management (EAM) system. This effort evaluates current workflows, systems, data, and integration points across service requests, work orders, asset management, permitting, geographic information systems (GIS), and capital project tracking. This additional funding request will implement the new EAM system in phases.
• NEW – GIS System Transition. Staff request $765,000 in FY 2027-28 for this project to transition the City from an externally managed GIS platform to a fully developed, internally supported system to improve asset visibility, data integration, and spatial accuracy. This project will complement the EAM system and allow it to function fully as intended.

Child Care Fund 26:

The Child Care Fund accounts for development fees collected and used to finance new childcare facility development and childcare space.

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June 22, 2026 Packet Pg. 856
The $3.1 million accounting adjustment in the table above represents a delay in development revenues flowing into the fund and the projected revenues have been reduced accordingly.

Staff recommend changes to the following existing projects:
• Child Care Space Reimbursement (C2327). $1 million in funding was previously appropriated for this project to reimburse applicants who choose to meet the Child Care Impact Fee requirement by building child care onsite, rather than by paying the fee. Staff recommend delaying the originally appropriated $1 million of funding to FY 2027-28 to better align with the estimated timing of development payments and to maintain a balanced budget (positive fund balance).

Park-in-Lieu Fund 27:

The Park-in-Lieu Fund accounts for development fees collected and used to finance the acquisition, construction, and major improvement of City parks.

FY Child Care Fund Revised Budget
Accounting
Adjustments Requests Proposed Budget
FY 2025-26 Beginning Fund Balance 665,362 665,362
Operating Revenues 3,157,500 (3,130,000) - 27,500
Capital Expenditures (250,000) - - (250,000)
Rolled-over Capital Project Budget (1,035,171) - 1,000,000 (35,171) Total Change in Fund Balance 1,872,329 (3,130,000) 1,000,000 (257,671) FY 2025-26 Ending Fund Balance 2,537,691 407,691
FY 2026-27 Beginning Fund Balance 407,691 407,691
Operating Revenues 28,300 - - 28,300
Capital Expenditures (250,000) - - (250,000)
Total Change in Fund Balance (221,700) - - (221,700)
FY 2026-27 Ending Fund Balance 185,991 185,991

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June 22, 2026 Packet Pg. 857
As shown in the table above, projected development revenues have been adjusted in both FY 2025-26 and FY 2026-27 to reflect the expected timing of development fees.

Staff also recommend adding a $150,000 transfer in from the General Capital Fund in FY 2026- 27 to help cover project costs and maintain a balanced budget in the fund.

Staff recommend changes to the following existing projects:
• Trail Improvements, expansion, and connections (C2330). $820,000 was previously budgeted for this project to cover the cost of identified trail improvements in Eaton and Big Canyon Parks and implement trail connections into adjacent open space parks in neighboring jurisdictions. The project is nearing completion and staff recommend releasing $200,000 of the budget to help provide funding for other projects. • Conceptual Design of Community Center (C2331). $286,000 was previously budgeted for this project with nothing spent to date. Staff recommend changing the title of this project to “Laureola Park Master Plan” following the decision of the City Council to focus on Laureola Park as the location for a potential Aquatic Center and Community Center. Staff also recommend partial usage of the $600,000 Transit Village reserve funds to cover the cost of this project.
• Parks Master Plan Improvements (C2517). $500,000 was previously approved for this project in both FY 2027-28 and FY 2028-29. Staff now recommend moving $250,000 from FY 2027-28 to FY 2026-27 in anticipation of an earlier start to this project and the funding of several short-term parks improvements.

FY Park in Lieu Fund Revised Budget
Accounting
Adjustments Requests Proposed Budget
FY 2025-26 Beginning Fund Balance 1,423,276 1,423,276
Operating Revenues 167,800 52,200 - 220,000
Restricted Revenues (Reserve) - (314,000) - (314,000)
Outside Funding 20,000 10,000 - 30,000
Capital Expenditures (536,000) - 200,000 (336,000)
Rolled-over Capital Project Budget (1,216,007) - - (1,216,007) Net Transfers and Allocations 400,000 - - 400,000
Total Change in Fund Balances (1,164,207) (251,800) 200,000 (1,216,007) FY 2025-26 Ending Restricted Fund Balance 600,000 314,000 FY 2025-26 Ending Unrestricted Fund Balance 259,069 207,269 FY 2026-27 Ending Restricted Fund Balance 314,000 314,000 FY 2026-27 Ending Unrestricted Fund Balance 207,269 207,269 Operating Revenues 1,042,800 (870,000) - 172,800
Capital Expenditures (150,000) - (250,000) (400,000)
Net Transfers and Allocations - 150,000 - 150,000
Total Change in Fund Balances 892,800 (720,000) (250,000) (77,200) FY 2026-27 Ending Restricted Fund Balance 314,000 314,000 FY 2026-27 Ending Unrestricted Fund Balance 1,100,069 130,069

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Housing Funds 29 and 31:

The Housing in Lieu Fund (Fund 29) accounts for development fees and the Low and Moderate Income (“LMI”) Housing Fund (Fund 31) accounts for LMI assets transferred from the dissolved San Carlos Redevelopment Agency. Both funds must be used to increase and improve the supply of housing affordable to moderate-, low-, very low-, and extremely low-income households.

Monies may also be used to cover reasonable administrative or related expenses associated with the administration of this function.

The Housing Funds carry large loans receivable balances due to the loans made by the City for the 1232-1244 Cherry Street development project, the Laureola Oaks property purchase, the 817 Walnut Street affordable housing project, the Down Payment Assistance Loan program, and the Human Investment Project at 717 Cedar Street. These balances contribute to fund balance and give an indication of funds being available for projects. Staff have presented the loans receivables as “non-spendable” balances in the above table. However, actual cash available for projects in the Housing Funds is very low as the City awaits the inflow of commercial linkage fees from future development projects. This is reflected by the revenue accounting adjustments in the above table.

Once those revenues are received, loans from the General Fund Strategic Purchase Acquisition Reserve (SPAR) to help finance the 1232 Cherry Street loan and the purchase of the Elm Street unit in December 2025 will be paid off. These SPAR loans are represented by the $5.1 million inflow under accounting adjustments in the table. Staff also recommend reducing the following two project budgets as follows, due to the delay in receipt of development-related revenues:
• Affordable Housing Site Acquisition/Construction (C2332). This project had $23.1 million in placeholder funds previously appropriated. $12.5 million was spent in FY 2023- 24 on 1800 El Camino Real and 1131-1133 Eaton Avenue for a future affordable housing development. Staff recommend removing the remaining $10.6 million in placeholder funds for now, to maintain a balanced budget, as the city awaits further development revenues.

FY Housing Funds Revised Budget
Accounting
Adjustments Requests Proposed Budget
FY 2025-26 Beginning Fund Balance 17,436,257 17,436,257 Operating Revenues 16,294,100 (15,854,100) - 440,000
Operating Expenditures (748,100) 454,100 - (294,000)
Capital Expenditures - - - -
Rolled-over Capital Project Budget (20,186,624) - 14,884,468 (5,302,156) Net Transfers and Allocations (547,100) 5,075,175 - 4,528,075 Total Change in Fund Balance (5,187,724) (10,324,825) 14,884,468 (628,081) Non-spendable Fund Balance - 16,808,176 - 16,808,176
FY 2025-26 Ending Fund Balance 12,248,533 -
FY 2026-27 Beginning Fund Balance 16,808,176 16,808,176 Operating Revenues 7,232,500 (7,112,500) - 120,000
Operating Expenditures (770,500) 467,700 - (302,800)
Capital Expenditures - - (88,000) (88,000)
Net Transfers and Allocations (563,500) (563,500)
Total Change in Fund Balance 5,898,500 (6,644,800) (88,000) (834,300) Non-spendable Fund Balance - 15,973,876 - 15,973,876
FY 2026-27 Ending Fund Balance 22,706,676 -

11.b
June 22, 2026 Packet Pg. 859
• Cherry Street Below Market Rate Housing Acquisition (C9754). After acquiring the property in 2022, the City has provided a loan of $12.9 million to the developer to build 33 affordable housing units on the site. Staff recommend removing the remaining previously approved placeholder budget of $4.3 million, to maintain a balanced budget.

Staff recommend the following new project:
• NEW – Carl's Jr. Demolition and Fencing for Future Affordable Housing. Staff request an appropriation of $88,000 in FY 2026-27 and recommend additional funding of $12,000 in FY 2027-28 for the demolition and fencing of the Carl's Jr following expiration of their lease in March 2026. The demolition is needed to prepare the site for a future RFP/RFQ process to invite developers to submit proposals for an anticipated 100% affordable housing development. The site will also need to be fenced to maintain cleanliness and security post-demolition. Once commercial linkage fees are collected from upcoming developments and deposited into the Housing In-Lieu Fund 29, the RFP/RFQ process for this site will begin.

Unfunded List:

The unfunded list represents projects that have been requested but have not been recommended for funding at this time. At the end of the fiscal year, if there are savings from FY 2025-26, the City Manager will bring forward a recommendation to possibly fund some of these projects.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution approving the proposed Fiscal Year 2025-26 and 2026-27 Capital Fund Mid-Cycle Budget adjustments; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Paul Harris, Financial Services Manager ; and
Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
____________________________
Kathy Kleinbaum, City Manager

11.b
June 22, 2026 Packet Pg. 860
ATTACHMENT(S):

1. Resolution

2. FY 2025-30 CIP Budget Summary

3. FY 2025-30 CIP Budget Detail

4. CIP Project Sheets

5. CIP Unfunded Project List

11.b
June 22, 2026 Packet Pg. 861
RESOLUTION NO. 2026 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS APPROVING THE PROPOSED FISCAL YEAR 2025-26 AND 2026-27
CAPITAL FUND MID-CYCLE BUDGET ADJUSTMENTS.

WHEREAS, the City of San Carlos adopted the fiscal year (FY) 2025-27 Biennial Operating and Capital Improvement Program Budget on June 9, 2025; and WHEREAS, the City desires to increase the FY 2026-27 Wastewater Fund appropriations by $296,400, increasing the total appropriations to $28,694,200; and WHEREAS, the City desires to reduce the FY 2026-27 Gas Tax Fund Transfers In from the General Fund by $2,000,000; and
WHEREAS, the City desires to reduce the FY 2025-26 General Capital Funds appropriations by $5,752,510, reducing the total appropriations to $16,726,207; and WHEREAS, the City desires to increase the FY 2026-27 General Capital Funds appropriations by $25,065,000, increasing the total appropriations to $35,444,100; increase the Transfer In from the General Fund by $5,000,000; reduce the Transfer Out to the Gas Tax Fund by $2,000,000; and increase the Transfer Out to the Park-in-Lieu Fund by $150,000; and WHEREAS, the City desires to reduce the FY 2025-26 Park in Lieu Fund appropriations by $200,000, reducing the total appropriations to $336,000; and WHEREAS, the City desires to increase the FY 2026-27 Park in Lieu Fund appropriations by $250,000, increasing the total appropriations to $400,000; and WHEREAS, the City desires to reduce the FY 2025-26 Housing Funds appropriations by $454,100, reducing the total appropriations to $294,000; and WHEREAS, the City desires to reduce the FY 2026-27 Housing Funds appropriations by 467,700, reducing the total appropriations to $302,800.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby approves the fiscal year 2025-26 and 2026-27 capital fund mid-cycle budget adjustments. * * * * *
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 22nd day of June 2026, by the following vote:

11.b
June 22, 2026 Packet Pg. 862
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

11.b
June 22, 2026 Packet Pg. 863
Wastewater Fund - Fund 0006 Restricted
Restricted Fund Balance $ 49,947,257 47,008,338 $ 49,947,257 $ 32,911,900 $ 32,911,900 $ 23,617,600 $ 20,718,900 $ 16,960,000 $ SVCW Investment 5,406,032 6,668,905 5,406,032 5,406,032 5,406,032 5,406,032 5,406,032 5,406,032 Total Restricted Fund Balance 55,353,289 53,677,243 55,353,289 38,317,932 38,317,932 29,023,632 26,124,932 22,366,032

3.0% 3.0% 3.0% 3.0% 4.0% 4.0% 4.0%
Operating Revenues * 28,897,800 25,046,333 24,277,800 28,743,100 25,003,100 31,868,900 29,993,100 35,561,300 General Operating Expenses (3,765,800) (3,992,527) (3,765,800) (4,398,800) (4,395,200) (4,144,300) (4,846,300) (4,479,400) Capital Projects (21,416,548) (906,372) (21,350,657) (11,875,000) (12,175,000) (12,275,000) (10,875,000) (9,775,000) SVCW Operating Expenses (4,610,000) (3,129,523) (4,610,000) (4,477,000) (4,477,000) (4,648,000) (4,824,000) (5,008,000) Existing SVCW Bonds (2,975,900) (2,985,507) (2,975,900) (2,973,500) (2,973,500) (2,976,900) (2,975,500) (2,969,900) Cash-in-lieu of Debt (755,000) (2,062,476) (755,000) (2,275,000) (2,275,000) (780,000) - - SCVW Future Bonds (366,100) - (366,100) (366,500) (366,500) (366,100) (365,500) (563,100) SCVW Future SRF Loans (1,350,000) - (1,350,000) (1,350,000) (1,350,000) (1,350,000) (1,350,000) (1,350,000) State Revolving Loan & Reserve Requirement - (1,215,934) - - - (1,689,000) (1,689,000) (1,917,000) SVCW Capital Contributions (710,000) (756,936) (710,000) (682,000) (682,000) (757,000) (833,000) (909,000) Net Transfers & Allocations to other funds (5,429,700) (4,228,100) (5,429,700) (5,603,200) (5,603,200) (5,781,300) (5,993,700) (6,193,400) Investment in SVCW - (1,262,873) - - - - - -
Net change in current year (12,481,248) 4,506,082 (17,035,357) (5,257,900) (9,294,300) (2,898,700) (3,758,900) 2,396,500 SVCW Investment 5,406,032 5,406,032 5,406,032 5,406,032 5,406,032 5,406,032 5,406,032 5,406,032 Wastewater Fund - Est. Restricted Ending Balance 49,947,257 $ 37,466,008 $ 32,911,900 $ 27,654,000 $ 23,617,600 $ 20,718,900 $ 16,960,000 $ 19,356,500 $ * Note: Sewer Projected Revenues include Fee Increases that will need to be approved by Council and will be subject to Prop 218 hearings Gas Tax Fund - Fund 0016
Beginning Fund Balance $ 21,064,828 17,686,924 $ 21,064,828 $ 19,329,685 $ 19,329,685 $ 13,044,485 $ 5,559,285 $ 2,967,085 $ Other Operating Revenues 349,300 1,132,418 349,300 359,700 359,700 370,500 381,600 393,100 Gas Tax Revenues 1,683,300 1,706,666 1,683,300 1,733,600 1,733,600 1,785,600 1,839,000 1,894,000 Measure M 65,000 34,459 65,000 67,000 67,000 69,000 82,400 96,200 Outside Funding for Capital Projects 120,000 29,983 120,000 120,000 120,000 80,000 80,000 80,000 Capital Projects (10,706,843) (6,077,421) (10,706,843) (9,600,000) (9,600,000) (9,980,000) (7,980,000) (5,480,000) Transfer from GF - Facility/Infrastructure Reserve - - - - - - Transfer from GF - PG&E Settlement - - - - - - - -
Transfer from GF 2,850,000 2,850,000 2,850,000 - - - - - Transfer from General Capital Fund 25 3,275,000 3,275,000 3,275,000 2,850,000 850,000 - 2,850,000 - Transfer from Fund 25 Traffic Mitigation Fee Reserve
Transfer from Measure A/K (F14) and Measure W (F18) Funds 2,142,100 1,642,900 2,142,100 1,742,700 1,742,700 1,794,700 1,808,000 1,831,700 Net Allocations from/(to) other funds* (1,513,000) (1,216,100) (1,513,000) (1,558,200) (1,558,200) (1,605,000) (1,653,200) (1,702,900) Net Change in Fund Balance (1,735,143) 3,377,904 (1,735,143) (4,285,200) (6,285,200) (7,485,200) (2,592,200) (2,887,900) Gas Tax Fund - Estimated Ending Balance 21,064,828 $ 19,329,685 $ 19,329,685 $ 15,044,485 $ 13,044,485 $ 5,559,285 $ 2,967,085 $ 79,185 $

CAPITAL IMPROVEMENT PROGRAM

FUND SUMMARY
FY 28-29
Forecasted
FY 29-30
Forecasted
Projected Sewer Rate Increase
FY 24-25
Audited
FY 25-26
Revised
FY 26-27
Revised
FY 27-28
Forecasted
FY 25-26
Proposed
Update
FY 26-27
Proposed
Update

11.b
June 22, 2026 Packet Pg. 864

CAPITAL IMPROVEMENT PROGRAM

FUND SUMMARY
FY 28-29
Forecasted
FY 29-30
Forecasted
FY 24-25
Audited
FY 25-26
Revised
FY 26-27
Revised
FY 27-28
Forecasted
FY 25-26
Proposed
Update
FY 26-27
Proposed
Update
Capital Projects Fund - Fund 0025
Unrestricted Fund Balance Unrestricted Fund Balance $ 27,162,159 32,095,630 $ 27,162,159 $ 6,211,449 $ 6,211,449 $ 496,662 $ 2,476,175 $ 5,990,075 $ Restricted 3,247,304 2,998,495 3,247,304 9,721,277 9,721,277 10,929,977 11,648,664 11,888,864 Total Beginning Fund Balance 30,409,463 35,094,125 30,409,463 15,932,725 15,932,725 11,426,638 14,124,838 17,878,938 Operating Revenues 6,135,600 6,318,518 6,735,600 6,188,400 6,188,400 6,284,000 6,382,500 6,483,900 Restricted Revenues 8,323,474 335,718 5,925,954 1,426,100 336,100 2,949,200 1,536,600 3,583,200 Outside Funding for Capital Projects 3,798,889 1,399,336 3,798,889 329,100 11,355,100 5,000,000 75,781,000 12,500,000 Capital Projects (48,067,567) (12,470,713) (42,625,057) (10,379,100) (35,444,100) (13,535,000) (79,096,000) (17,220,000) Net Transfers & Allocations from/(to) other funds 11,687,877 (267,523) 11,687,877 4,150,000 11,000,000 2,000,000 (850,000) 2,000,000 Net Change in Fund Balance (18,121,728) (4,684,662) (14,476,737) 1,714,500 (6,564,500) 2,698,200 3,754,100 7,347,100 Restricted Fund (Bldg. Maintenance/Imp) 79,500 79,500 79,500 - - - - - 1,033,127 896,427 1,033,127 1,173,927 1,173,927 1,318,927 1,468,327 1,622,227 Technology Fee Reserve 253,666 217,966 253,666 290,466 290,466 328,366 367,366 407,566 Traffic Mitigation Fee Reserve 2,560,000 - - 1,090,000 - 2,603,000 2,633,000 5,848,800 General Plan Update Reserve 649,572 546,572 649,572 649,572 649,572 649,572 649,572 649,572 Levee Assessment Reserve 223,493 192,593 223,493 223,493 223,493 223,493 223,493 223,493 PEG Fund Reserve 11,354 419,129 69,915 90,515 90,515 111,715 133,515 156,015 Parks and Recreation Donations Reserve 695,117 895,117 799,037 799,037 467,559 437,559 437,559 437,559 Library Reserve - Trust Fund 1,782,540 - 1,642,285 1,642,285 1,005,350 1,005,350 1,005,350 1,005,350 Library Reserve 770,682 770,682 770,682 770,682 770,682 770,682 770,682 Transit Village - - - - - - -
Community Benefits Reserve 4,200,000 - 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000 Total Restricted Fund 12,259,051 3,247,304 9,721,277 10,929,977 8,871,564 11,648,664 11,888,864 15,321,264 Capital Fund - Est Unrestricted Ending Balance 27,162,159 $ 28,684 $ 6,211,449 $ 6,717,249 $ 496,662 $ 2,476,175 $ 5,990,075 $ 9,904,775 $ Child Care Fund - Fund 26
Beginning Fund Balance 665,362 1,090,502 665,362 407,691 407,691 185,991 1,835,091 2,115,091 Operating Revenues 3,157,500 39,689 27,500 28,300 28,300 2,899,100 1,530,000 4,751,900 Operating Expenses - private grant program - - - - - - - - Outside Funding for Capital Projects - - - - - - - -
Capital Projects (1,285,171) (464,829) (285,171) (250,000) (250,000) (1,250,000) (1,250,000) (6,000,000) Net Transfers & Allocations to other funds - - - - - - - - Net Change in Fund Balance (425,140) $ 1,872,329 $ (257,671) $ (221,700) $ (221,700) $ 1,649,100 $ 280,000 $ (1,248,100) $ Child Care Fund - Est Ending Balance 665,362 $ 2,537,691 $ 407,691 $ 185,991 $ 185,991 $ 1,835,091 $ 2,115,091 $ 866,991 $ Turf Replacement Reserve

11.b
June 22, 2026 Packet Pg. 865

CAPITAL IMPROVEMENT PROGRAM

FUND SUMMARY
FY 28-29
Forecasted
FY 29-30
Forecasted
FY 24-25
Audited
FY 25-26
Revised
FY 26-27
Revised
FY 27-28
Forecasted
FY 25-26
Proposed
Update
FY 26-27
Proposed
Update
Park In Lieu Fund - Fund 27
Beginning Fund Balance $ 1,423,276 1,662,076 $ 1,423,276 $ 207,269 $ 207,269 $ 130,069 $ 83,069 $ 661,369 $ Operating Revenues 167,800 151,615 220,000 1,042,800 172,800 178,000 1,053,300 968,800 Restricted Revenues 286,000 -
Operating Expenses - - - - - - - -
Transit Village (600,000) -
Outside Funding for Capital Projects 20,000 166,169 30,000 - - 25,000 25,000 - Capital Projects (1,752,007) (556,584) (1,552,007) (150,000) (400,000) (250,000) (500,000) - Transfer from Capital Improvement Fund (fund 25) 400,000 400,000 150,000 Net Transfers & Allocations to other funds - - - - - - - - Transit Village Reserve 600,000 - 314,000 314,000 314,000 314,000 314,000 314,000 Net Change in Fund Balance $ (1,164,207) (238,800) $ (1,216,007) $ 892,800 $ (77,200) $ (47,000) $ 578,300 $ 968,800 $ Total Restricted Fund 600,000 - 314,000 314,000 $ 314,000 $ 314,000 $ 314,000 $ 314,000 $ Park In Lieu Fund - Est Unrestricted Ending Balance 1,423,276 $ 259,069 $ 207,269 $ 1,100,069 $ 130,069 $ 83,069 $ 661,369 $ 1,630,169 $ Housing Fund - Fund 0029 and 0031
Beginning Fund Balance $ 17,436,257 14,252,339 $ 17,436,257 $ 16,808,176 $ 16,808,176 $ 15,973,876 $ 20,885,601 $ 26,075,309 $ Operating Revenues 16,294,100 4,008,563 440,000 $ 7,232,500 120,000 $ 10,863,600 $ 6,091,308 $ 28,146,127 $ Operating Expenses (748,100) (379,800) (294,000) (770,500) (302,800) (311,900) (321,300) (330,900) Capital Projects (20,186,624) (10,745) (5,302,156) - (88,000) (12,000) - - Net Transfers & Allocations to other funds (547,100) (434,100) 4,528,075 $ (563,500) (563,500) (5,627,975) (580,300) (597,700) Net Change in Fund Balance (5,187,724) 3,183,918 (628,081) 5,898,500 (834,300) 4,911,725 5,189,708 27,217,527 Non Spendable Fund Balance 16,808,176 17,436,257 15,973,876 15,973,876 15,973,876 15,973,876 Housing in Lieu Est Unrestricted Ending Balance 17,436,257 $ 12,248,533 $ (0) $ 22,706,676 $ (0) $ 4,911,725 $ 10,101,433 $ 37,318,960 $

11.b
June 22, 2026 Packet Pg. 866

CAPITAL IMPROVEMENT PROGRAM BUDGET DETAIL
0006 - Wastewater (Sewer) Fund
Previously approved/Ongoing projects
0006 C9617 Annual Sewer System Rehabilitation Program 7,000,000 2,776,089 11,082,556 11,082,556 7,000,000 5,850,000 5,700,000 7,000,000 7,000,000 43,632,556 0006 C1702 Annual On-Call Sewer Contracts 900,000 26,836 900,000 900,000 900,000 900,000 900,000 900,000 900,000 5,400,000 0006 C1737 Annual Sewer Lateral Replacement 300,000 12,752 300,000 300,000 300,000 300,000 300,000 300,000 300,000 1,800,000 0006 C1752 Annual Sewer System Root Foaming 175,000 141,678 175,000 175,000 175,000 175,000 175,000 175,000 175,000 1,050,000 0006 C9609 Wastewater Financial Plan & Rate Study 120,000 54,108 - (65,892) - - - 54,108 0006 C1736 Sewer System CCTV Inspection 1,382,701 935,364 400,000 400,000 - 1,100,000 1,150,000 - 400,000 4,432,701 0006 C2101 250,000 72,506 - - - 300,000 - - - 550,000
0006 C2301 Sewer and Storm Pump Station Assessment 150,000 101,221 - - - - - 150,000 0006 C2302 Sewer Model Update 374,560 322,601 - - - - - 374,560 0006 C2303 Shoreway Road Sewer Main Relocation Project 605,000 468,622 3,000,000 3,000,000 - - - 3,605,000 0006 C2304 Tierra Linda Pump Station Improvements 1,000,000 103,235 - - - - - 1,000,000 0006 C2305 Capacity Improvements - - 2,000,000 2,000,000 3,500,000 3,500,000 3,500,000 2,500,000 1,000,000 12,500,000 0006 C2401 Man Hole Monitoring System Upgrade 150,000 138,415 - - - - - 150,000 0006 C2501 Replacement of Combination Sewer Truck - - 854,000 854,000 - 854,000 0006 C2502 Upgrade of Existing SCADA Hardware at all Sewer and Storm Pump Stations - - 450,000 450,000 - 450,000 0006 C2503 Wastewater Rate and Capacity Charge Study - - 100,000 100,000 - 100,000 0006 NEW Maintenance Hole and Force Main Assessments - - - 50,000 550,000 600,000 Total Outside Funding - - - - - - - - - -
Total Capital 5,153,426 12,407,261 19,261,556 19,195,664 11,875,000 12,175,000 12,275,000 10,875,000 9,775,000 76,702,925 Total Transfers (Inter-project) - - - - - - - - - -
Total Wastewater Fund 0006 12,407,261 5,153,426 19,261,556 19,195,664 11,875,000 12,175,000 12,275,000 10,875,000 9,775,000 76,702,925 Ending Fund Balance Wastewater Fund 0006 37,466,008 32,911,900 27,654,000 23,617,600 20,718,900 16,960,000 19,356,500 FY 28-29
Forecasted
FY 29-30
Forecasted
Total Project
Funding
Total Project
Spent as of
4/29/2026
FY 25-26
Revised
FY 26-27
Revised
Generator Installation for Sewer Pump Stations
FY 27-28
Forecasted
FY 26-27
Proposed
Update
FY 25-26 Proposed
Update
Total
Approved
Budget as of
Fund Project Name Project 6/30/2025

11.b
June 22, 2026 Packet Pg. 867

11.b
June 22, 2026 Packet Pg. 868

CAPITAL IMPROVEMENT PROGRAM BUDGET DETAIL
FY 28-29
Forecasted
FY 29-30
Forecasted
Total Project
Funding
Total Project
Spent as of
4/29/2026
FY 25-26
Revised
FY 26-27
Revised
FY 27-28
Forecasted
FY 26-27
Proposed
Update
FY 25-26 Proposed
Update
Total
Approved
Budget as of
Fund Project Name Project 6/30/2025
0025 - General Fund Capital Projects Fund
Completed Projects
0025 C2338 Construct and Install Wooden Planters Over Orange Water Wall Barriers 100,000 100,000 100,000 0025 C2406 Highlands Park Snack Shack Repairs 65,000 65,000 65,000 0025 C2406 Highlands Park Snack Shack Repairs (10,000) (10,000) (10,000) 0025 C2311 2030 General Plan Amendment - Resetting Buildout to Allow Continued Improvements to 2030 346,740 420,000 420,000 0025 C2311 General Plan Update Rerserve (14,021) - (14,021) Projects Nearing Completion
0025 C1815 City Tree Consultant 100,000 50,722 - - - - - 100,000 0025 C2208 East Side Innovation District Pulgas Creek Watershed Study 500,000 444,522 (55,478) - 444,522 0025 C1808 GIS Sign Inventory 125,000 123,500 - - 125,000 0025 C2205 City Facility Cameras 550,000 543,753 - - 550,000 0025 C2316 1,500,000 798,514 (650,000) - 850,000
0025 C2316 Library Reserve (252,300) (252,300) - - (252,300) 0025 C2318 Big Canyon Park Landslide Repair (Behind 995 Crestview Drive) 195,000 188,594 - - 195,000 0025 C2319 Big Canyon Park Landslide Repair (Above 3144 Brittan Avenue) 550,000 542,328 (7,672) - 542,328 0025 C2323 Big Canyon Park Landslide Repair (Above 3144 Brittan Avenue) 422,100 419,213 - - 422,100 0025 C2335 Landslide Review and Inspection (Geotech Engineer) 180,000 175,161 - - 180,000 0025 C2339 AED Installment 100,000 82,146 - - 100,000
0025 C9823 Fire Station 16 Replacement 12,400,000 11,725,474 - - 12,400,000 0025 C9823
American Rescue Plan Act
(ARPA) (10,440,591) (10,440,591) - - (10,440,591)
Previously approved/Ongoing/New proposed projects
Storm Drainage System
0025 C9531 Storm Drain Improvements 1,014,787 408,626 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 500,000 500,000 5,014,787 0025 C9531 Storm Drain Improvements Cost Reimbursement - - - - - 0025 C9806 Belmont Creek Watershed Improvement 500,000 231,516 550,000 166,000 - 666,000 0025 C9828 Storm Channel Sediment Removal 3,408,369 2,174,405 (650,000) - 650,000 3,408,369 0025 C2108 Storm Water Motor Control Center and Pump Replacements (Holly Street/Old County and - 500,000 - - 500,000 0025 C2514 Industrial Road Bridge & Culvert Repair Project - - 100,000 100,000 500,000 500,000 600,000 0025 NEW Pulgas Creek Watershed - Native Planting Pilot Project - - - - - 500,000 500,000 Streets and Sidewalks
0025 C1712 Illuminated St Name Sign Replacement 205,000 1,657 - - - - - 205,000 0025 C1722 San Carlos Avenue Asphalt Pathway Replacement (ADLP to Cordilleras Ave) 1,309,644 922,706 - - - - - 1,309,644 0025 C1722 SMCTA Grant - (500,000) (500,000) - (500,000) 0025 C1725 Upgrade Pedestrian Signal Heads to Countdown Pedestrian Signals 830,000 31,421 - (735,000) - - 735,000 830,000 0025 C1728 5KV Streetlight Conversion 335,000 225 - (330,000) - - 330,000 335,000 0025 C1746 ECR/Rail Corridor Tree Planting and Irrigation Installation 610,000 25,829 (434,000) (434,000) - - - 176,000 0025 C1746 Transit Village (150,000) (150,000) - - - - - (150,000) 2nd Floor Library Remodel (Phase II)

11.b
June 22, 2026 Packet Pg. 869

CAPITAL IMPROVEMENT PROGRAM BUDGET DETAIL
FY 28-29
Forecasted
FY 29-30
Forecasted
Total Project
Funding
Total Project
Spent as of
4/29/2026
FY 25-26
Revised
FY 26-27
Revised
FY 27-28
Forecasted
FY 26-27
Proposed
Update
FY 25-26 Proposed
Update
Total
Approved
Budget as of
Fund Project Name Project 6/30/2025
0025 C1806 San Carlos Ave Pedestrian Safety Improvements Phase III 6,701,149 6,689,020 200,000 200,000 - - - 6,901,149 0025 C1806 Developer Donation (8,000) (8,000) - - - - - (8,000) 0025 C1806 Measure A Bike/Ped (1,400,000) (1,400,000) - - - - - (1,400,000) 0025 C1806 Traffic Mitigation Fee Reserve (3,401,150) - - - - - - (3,401,150) 0025 C2106 Brittan Avenue Sidewalk Improvements (Between Rogers Ave & Sunset Drive) 2,025,000 159,826 975,000 975,000 - - - 3,000,000 0025 C2106 Traffic Mitigation Fee Reserve (52,935) (52,935) (1,447,065) - - - - (52,935) 0025 C2106 SMCTA Grant - (1,500,000) (1,500,000) - (1,500,000) 0025 C2201 Arroyo Avenue and Chestnut Street Safe Routes to School Improvements and Paving 697,866 867,000 - - - - - 867,000 0025 C2201
Priority Legislative Budget
Projects Grant - (150,000) - - - - - (150,000)
0025 C2201 Traffic Mitigation Fee Reserve (375,000) - - - - - - (375,000) 0025 C2201 School District Reimbursement (20,457) - - - (20,457) 0025 C2212 Tree Well Replacement on Industrial Road 400,000 39,938 (360,000) (360,000) - - - 40,000 0025 C2212 Developer revenue - (27,500) (27,000) (27,000) - (27,000) 0025 C2213 Intersection Pedestrian Improvements (Arroyo/Woodland, Olive/Elm) 1,000,000 143,783 500,000 500,000 - - - 1,500,000 0025 C2325 San Carlos Avenue Pedestrian Safety Improvement Phase IV 300,000 - - - - - 1,200,000 1,500,000 0025 C2325 Traffic Mitigation Fee Reserve - - - - - - - (1,150,000) - (1,150,000) 0025 C2403 Landslide Repairs (Hillsides Above Eaton Trail, 3101 Brittan, Sheldon Road & Chilton Park) 650,112 1,000,000 - - 1,000,000 Safe Routes to School
0025 C2214 SRTS Intersection and Sidewalk Improvements (Tamarack, Belle, Elm, Arroyo, Belmont, Cedar, and St. Francis) 152,354 1,000,000 500,000 500,000 1,500,000 1,500,000 1,500,000 4,500,000 0025 C2508 Safe Routes to School & Pavement Project - Clifford Street - - - 100,000 100,000 300,000 400,000 0025 C2509 Safe Routes to School Improvements near Tierra Linda Middle, Mariposa Elementary & SC Charter Schools - - 200,000 200,000 - 200,000 0025 C2510 Safe Routes to School Improvements near Brittan Acres and Heather - - - - 300,000 800,000 1,100,000 0025 C2511 Safe Routes to School Improvements near Arundel - - - - - 250,000 1,200,000 1,450,000 0025 C2512 Complete Streets & Corridor Studies - - - - - 350,000 - 400,000 750,000 Traffic and Transit
0025 C9459 Holly St/US 101 Interchangeand Pedestrian Overcrossing Long-Term 8,543,830 8,310,663 5,000,000 4,209,000 5,000,000 7,620,000 5,000,000 75,281,000 12,500,000 113,153,830 0025 C9459 Traffic Mitigation Fee Reserve (1,116,746) (1,116,746) - - - (1,116,746) 0025 C9459 Measure A - Highway (2,818,710) (2,818,710) - - (2,620,000) (5,000,000) (75,281,000) (85,719,710) 0025 C9459 Bike Path Program Funding (100,000) (100,000) - - - (100,000) 0025 C9459 Bicycle Pedestrian Imp (BPIP) - - - - - -
0025 C9459 TDA Article 3 (400,000) (400,000) - - - (400,000) 0025 C9459 Active Transportation Program (ATP) - - - - - - 0025 C9459 Transfer from Measure A Fund (350,000) (350,000) - - - (350,000) 0025 C9459 Facility Infrastructure Imp Reserve - - - - - - 0025 C9459 PAMF Contribution/Donations (523,000) (523,000) - - - (523,000) 0025 C9459 Bay Area Air Quality Grant (Bike/Ped) - - - - - - 0025 C9459 Successor Agency Bond Proceeds (1,368,742) (1,368,742) - - - (1,368,742) 0025 C9459 STIP - - - - - (12,500,000) (12,500,000)
0025 C9459 Transportation-HUD Appropriations Bill - - - - - (500,000) (500,000) 0025 C9838 Four Corners Traffic Improvements 250,000 186,748 - - - 250,000

11.b
June 22, 2026 Packet Pg. 870

CAPITAL IMPROVEMENT PROGRAM BUDGET DETAIL
FY 28-29
Forecasted
FY 29-30
Forecasted
Total Project
Funding
Total Project
Spent as of
4/29/2026
FY 25-26
Revised
FY 26-27
Revised
FY 27-28
Forecasted
FY 26-27
Proposed
Update
FY 25-26 Proposed
Update
Total
Approved
Budget as of
Fund Project Name Project 6/30/2025
0025 C1719 Citywide Way-finding Program 555,000 398,483 - - - - - 555,000 0025 C1807 Traffic Circle and Midblock Crossing (ADLP, Industrial, Crestview, and Morse) 2,806,000 2,610,784 650,000 650,000 - - - 3,456,000 0025 C2007 Traffic Signal System Analysis/Study 350,000 193,340 - - - - - 350,000 0025 C2210 East Side Innovation District Zoning Code: Transportation Demand Management Ordinance Amendment 381,727 522,300 - - - - - 522,300 0025 C2340 Kadence Adaptive Traffic Signal 200,000 99,842 - - - - - 200,000 0025 C2402 Pilot Roundabout at Crestview and Edmonds 316,000 - 250,000 250,000 - 566,000 0025 C2404 Industrial Road Turning Mitigation (Between Holly St and PAMF) 100,000 - 400,000 400,000 - - - 500,000 0025 C2405 Traffic Signal Masterplan Implementation 400,000 210,600 450,000 450,000 500,000 500,000 500,000 600,000 600,000 3,050,000 0025 C2504 Traffic Studies & Pilot Improvements - 158,990 500,000 500,000 500,000 1,230,000 650,000 650,000 650,000 3,680,000 0025 C2505 Traffic Technology & Funding Development - 28,271 450,000 450,000 250,000 250,000 250,000 250,000 250,000 1,450,000 0025 C2506 Traffic Signal Fiber Project - - - - 250,000 250,000 1,250,000 65,000 320,000 1,885,000 0025 C2507 Traffic Impact Fee (TIF) Study and Update - - 150,000 150,000 - - 150,000 0025 C2523 Intelligent Transportation System Signal Resiliency & Smart Corridor Expansion - - 576,400 576,400 - 576,400 0025 C2523 SMCTA Grant (Measure A/W) - - (524,000) (524,000) - (524,000) 0025 NEW Holly St/US 101 Interchange and Pedestrian Overcrossing-Mid Term - - 791,000 7,116,000 7,907,000 0025 NEW Measure A - Highway - - - (7,116,000) (7,116,000) Parks & Recreation
0025 C1811 Repave Asphalt Walking Path at Highlands Park 1,020,000 723,071 - (250,000) - - - 770,000 0025 C2102 Upgrade of Existing Tennis & Basketball Court Lighting 350,000 56,379 5,000 5,000 - - - 355,000 0025 C2306 Madsen Scorebooth @ Burton Park 450,000 53,740 (350,000) (350,000) - - - 100,000 0025 C2306 Parks & Recreation Foundation (25,000) - 25,000 25,000 - - - - 0025 C2307 Replacement of Existing Fencing in Burton and Highlands Parks 300,000 7,800 - - - - - 300,000 0025 C2309 City of San Carlos Centennial Celebration 1,000,000 834,452 - (156,000) - - - 844,000 0025 C2334 Tree Replacement in Burton Park 150,000 37,807 - - - - - 150,000 Planning
0025 C1903 GESC Tree/Neighborhood Improvement 83,340 12,403 - - - - - 83,340 0025 C1903 Developer Contributions (83,340) (83,340) - - - - - (83,340) 0025 C2105 Downtown Planning Initiative 1,445,000 1,307,492 69,900 69,900 - - - 1,514,900 0025 C2105 Grant - (300,000) (300,000) (300,000) - (300,000) 0025 C2206 East Side Innovation District Parking Strategy 100,000 43,865 - - - - - 100,000 0025 C2207 East Side Integrated Transportation and Streetscape Master Plan 200,000 - 150,000 150,000 - 1,454,000 - 1,804,000 0025 C2207 SMCTA Grant - (1,290,000) (1,290,000)
0025 C2211 Northeast Area Specific Plan 1,550,000 1,432,199 104,000 104,000 - - - 1,654,000 0025 C2215
Downtown Renovation Plan
Design/Implementation Design & Revenue Measure 2,150,000 1,400,773 - - - - - 2,150,000 0025 C2524 Downtown Renovation Plan Implementation Phase 1.a - Harrington Park 1,350,000 230,275 5,855,293 5,855,293 - - - 7,205,293 0025 C2525 Downtown Renovation Plan Implementation Phase 1.b - 700 Block - - 394,707 - - 10,000,000 10,000,000 0025 C2525
Downtown Renovation Plan
Design/Implementation Developer Contributions - - - - - - 0025 C2516 Climate Mitigation and Adaptation Plan Update - - 250,000 250,000 - 250,000 0025 NEW Developing Criteria for a Transportation Management Association 240,675 240,675 - 240,675 0025 NEW SMCTA Grant (196,916) (196,916) - (196,916)
0025 NEW Preservation of Ground Floor Commercial Uses - - - - - 75,000 75,000 0025 NEW SB 79 Capacity Analysis - - - - - 25,000 25,000 0025 NEW Downtown Prosperity Team Programming and Support - - - - - 250,000 250,000

11.b
June 22, 2026 Packet Pg. 871

CAPITAL IMPROVEMENT PROGRAM BUDGET DETAIL
FY 28-29
Forecasted
FY 29-30
Forecasted
Total Project
Funding
Total Project
Spent as of
4/29/2026
FY 25-26
Revised
FY 26-27
Revised
FY 27-28
Forecasted
FY 26-27
Proposed
Update
FY 25-26 Proposed
Update
Total
Approved
Budget as of
Fund Project Name Project 6/30/2025
Facilities, Technology and Equipment
0025 C1711 Fire Stations Repair 130,775 89,542 - - - - - 130,775 0025 C1711 Tsf Fm Facility Infrastructure Improvement Reserve (130,775) (130,775) - - - - - (130,775) 0025 C1753 Wheeler Plaza Garage Parking Management System Expansion & Extension 184,728 25,075 - (159,653) - - - 25,075 0025 C1813 Transfer Switches for Portable Generators (ACC, YC and Storm Pumps) 250,000 78,664 - - - - - 250,000 0025 C1816 Parking Occupancy Study 75,000 62,937 - - - - - 75,000 0025 C1908 1201 San Carlos Ave Property Acquisition 500,000 - - - - - - 500,000 0025 C2218 Permitting Software 500,000 451,095 - - - - - 500,000 0025 C2312 Migration From Hosted Server to Sharepoint 100,000 - - - - - - 100,000 0025 C2313 Door Access System Upgrade 150,000 - - - - - - 150,000 0025 C2322 Citywide Pole Banners 235,000 80,262 - (70,000) - - - 165,000 0025 C2336 Installation of New EV Stations in Public Parking Lots (Downtown) 200,000 - 329,100 129,100 329,100 329,100 - 658,200 0025 C2336 MTC Grant - - (261,600) (261,600) (261,600) (261,600) - (523,200) 0025 C2336 PCE Grant - - (67,500) (67,500) (67,500) (67,500) (135,000) 0025 C2407 ACC Sound system & Office/Conference Room Door Replacement 164,135 145,469 - - - - - 164,135 0025 C2407 Friends of ACC (50,000) - - - (50,000)
0025 C2408 Fire Alarm System Update 150,000 - - - - - - 150,000 0025 C2409 Corporation Yard Kitchen and Restroom Upgrade 170,000 139,620 - - - - - 170,000 0025 C2410 Roof Replacement and Solar Panel Upgrade 425,800 283,214 32,032 32,032 - - - 457,832 0025 C2410 Grants (425,800) (228,916) (32,032) (32,032) - (457,832) 0025 C2411 Sherrif's Department Floor and Cabinet Replacements 175,000 121,408 - - - - - 175,000 0025 C2411 Sherrif Office Trust Fund Reserve - (175,000) - - (175,000) 0025 C2412 Consultant Assessment and Recommendation for Public Works Technology Solutions 34,750 150,000 - - 150,000 0025 C2414 2nd Floor City Hall Remodel - 361 1,750,000 - - - - - 0025 C2415 Agenda Management Software Replacement - - - - - 150,000 150,000 0025 C2513 City Hall Roof Replacement - - - 450,000 450,000 450,000 0025 C2513 Restricted Fund (Bldg. Maintenance/Imp) - - - (79,500) (79,500) (79,500) 0025 C2515 Adult Community Center Kitchen Remodel Design - 15,415 223,900 223,900 1,200,000 1,423,900 0025 C2515 Parks and Recreation Donations Reserve - - (200,000) (200,000) (331,478) (531,478) 0025 C1734 Library Maintenance and Repairs 588,568 368,833 - - - - - - - 588,568 0025 C1734 Library Reserve (588,565) (356,083) - - (588,565) 0025 C2008 Library Building Emergency Backup Power 1,000,000 84,221 - - - - - - - 1,000,000 0025 C2008 Library Reserve (600,000) (84,221) (400,000) (400,000) - (1,000,000) 0025 C2114 City Library Foundation Study and Stair Repair 250,000 244,640 - - - - - - - 250,000 0025 C2114 Library Reserve (250,000) (244,640) - - (250,000) 0025 C2337 Library New AC Rooftop Unit 800,000 65,790 - - 800,000 0025 C2337 Library Reserve (800,000) (65,790) - - (800,000) 0025 C2418 Library Bathroom and Kitchen Upgrade 500,000 68,195 286,935 286,935 - 786,935 0025 C2418 Library Reserve - Trust Fund (500,000) (43,203) - (286,935) (786,935) 0025 C2419 Library Roof Upgrade 369,380 337,693 - - - 369,380 0025 C2419 Library Reserve (369,380) (369,380) - - (369,380) 0025 C2420 Library Parking Garage Cameras 500,000 187,776 - - - 500,000 0025 C2420 Library Reserve (140,254) (140,254) - - (140,254) 0025 C2518 Library Elevator Upgrades - 34,478 300,000 650,000 - 650,000 0025 C2518 Library Reserve - - (300,000) (300,000) (350,000) (650,000) 0025 C2519 Library Building Painting - 8,550 300,000 300,000 - 300,000

11.b
June 22, 2026 Packet Pg. 872

11.b
June 22, 2026 Packet Pg. 873

11.b
June 22, 2026 Packet Pg. 874

11.b
June 22, 2026 Packet Pg. 875

11.b
June 22, 2026 Packet Pg. 876
6 Citywide
Public Works Yes
Alex Tat
Sewer 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 1,382,701 $ 935,364 $ 400,000 $ - $ 400,000 $ - $ 400,000 $ 2,582,701 $ New request - $ - $ - $ 1,100,000 $ 750,000 $ - $ - $ 1,850,000 $ Total $ 1,382,701 $ 935,364 $ 400,000 $ 1,100,000 $ 1,150,000 $ - $ 400,000 $ 4,432,701 Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - $ - $ - $ - $ - $ - $ - $ -
Total Capital Project
$ 1,382,701 $ 935,364 $ 400,000 $ 1,100,000 $ 1,150,000 $ - $ 400,000 $ 4,432,701 X Climate Change Mitigation, Adaptation & Resilience Insert photo here Downtown
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
Current Strategic Plan Objective
Future Impact on Operating Budget
This is a continuous capital improvement project funded by Sewer fund.

Duration
Status
Programmed Funding
Continuous.

On-going.

C1736: Sewer System CCTV Inspection - AMENDED
Description
Sewer Closed Circuit Television (CCTV) Inspection Program.

In FY2026-27, approximately $1.1 million will be transferred into the project from the Annual Sewer System Rehabilitation Program (C9617) to support sewer system condition assessment work as outlined in the 2025 settlement with California River Watch. Another $750,000 will be transferred into the project from the Annual Sewer System Rehabilitation Program (C9617) in FY2027-28 to continue supporting sewer system condition assessment work.

Justification
An amendment for increased funding is requested to satisfy the 2025 settlement with California River Watch, which requires an inspection with condition ratings for the entire sanitary sewer gravity system network.

The last citywide sewer cleaning and inspection project was completed in 2017 and included video inspection and condition ratings for all pipes in the City’s sewer system (approximately 106 miles of pipeline). A new cycle for CCTV inspections of the entire system restarted in 2021. Staff uses the closed circuit television footage and defect data from this past project to prioritize lines for repair, rehabilitation, or replacement in upcoming sewer rehabilitation projects. Over time, sewer pipe conditions change due to deterioration, tree roots intrusion, grease, or other causes, so it is crucial to regularly monitor and record the condition of the sewer pipes to identify potential issues before sanitary sewer overflows (SSOs) or backups occur in the system. The City plans to conduct sewer cleaning and inspection projects consisting of three to five sewer basins each. The result will be that the City will have inspected the entire collection system every four to five years and will coordinate the schedule of inspection with anticipated future sewer rehabilitation projects. Video recordings and inspection data are archived on the City’s server and Computerized Maintenance Management System (CMMS), and are used jointly by Engineering and Maintenance staff to monitor the system.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Master Plan, Safety, Previously Funded,
Legal mandate and requirement

11.b
June 22, 2026 Packet Pg. 877
6 Citywide
Public Works Yes
Alex Tat Safety; Previosuly Funded
Facilities 2
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 250,000 $ 72,506 $ - $ - $ - $ - $ - $ 250,000 $ New request - $ - $ - $ 300,000 $ - $ - $ - $ 300,000 $ Total $ 72,506 250,000 $ - $ 300,000 $ - $ - $ - $ 550,000 $ Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ 72,506 250,000 $ - $ 300,000 $ - $ - $ - $ 550,000 $
X Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project
Future Impact on Operating Budget
Maintenance costs will be funded by the Sewer Fund.

Duration
Status
Programmed Funding
FY2024-27
The design phase of this project is anticipated to be completed by the end of FY2025-26; construction beginning thereafter.

X
C2101: Generator Installation at Sewer Pump Stations - AMENDED Description
This project was originally scoped to design transfer switches and permanent generators at three (3) sanitary sewer pump stations located throughout the city. The locations included the Lower Crestview, Upper Crestview and Associated sanitary sewer pump stations. The scope of work is now focused on the Associate sanitary sewer pump station location.

This amendent is requesting funding for the next phase (construction) of this project.

Justification
Sewer pumps stations do not have permanent generators and staff must transport the portable generators during a power outage. Installing permanent generators will reduce risks of Sanitary Sewer Overflows (SSOs) during an emergency and free up staff time to address other emergencies. The project is consistent with the objectives in the City Council's Strategic Plan for public safety planning.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective

11.b
June 22, 2026 Packet Pg. 878
6 Citywide
Public Works Yes
Alex Tat
Sewer 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 7,000,000 $ 2,776,089 $ 11,082,556 $ 7,000,000 $ 7,000,000 $ 7,000,000 $ 7,000,000 $ 46,082,556 $ New request - $ - $ - $ (1,150,000) $ (1,300,000) $ (2,450,000) $ Total $ 2,776,089 7,000,000 $ 11,082,556 $ 5,850,000 $ 5,700,000 $ 7,000,000 $ 7,000,000 $ 43,632,556 $ Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ 2,776,089 7,000,000 $ 11,082,556 $ 5,850,000 $ 5,700,000 $ 7,000,000 $ 7,000,000 $ 43,632,556 $ X Climate Change Mitigation, Adaptation & Resilience
Downtown Insert photo here
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
Current Strategic Plan Objective
Future Impact on Operating Budget
This is a continuous capital improvement project funded by the Sewer Fund.

C9617: Annual Sewer System Rehabilitation Program - AMENDED Description
The Sewer Master Plan was approved by the Council in March 2013. The estimated cost of repair, rehabilitation, or replacement cited in the Sewer Master Plan will range between $60 and $72 million for a comprehensive repair approach that would include manhole-to-manhole pipe rehabilitation and replacement targeted at restoring the sewers to a better overall condition to maximize their remaining service lives. Additionally, the project replaces or installs the lower portion of the sanitary sewer laterals and property line clean-outs to prevent or reduce sanitary sewer overflows. The upgrades are funded by sewer rate fee increases over the next few years as approved by the Council in 2024 based on recommendations from a rate study completed in 2023.

In FY2026-27, $1.15 million will be transferred out of the project to meet the stipulations for sewer system condition assessment and repair outlined in the 2025 settlement with California River Watch. Of that amount, $1.1 million will support the Sewer System CCTV Inspection Project (C1736), and $50,000 will support a new CIP project to provide maintenance hole and force main assessments.

In FY2027-28, $1.3 million will be transferred out of the project. Of that amount, $750,000 will support the Sewer System CCTV Inspection Project (C1736), and $550,000 will support a new CIP project to provide maintenance hole and force main assessments.

Justification
A transfer of funds as decribed above, is requested to satisfy the 2025 settlement with California River Watch, which requires a full assessment of the entire sanitary sewer system network gravity mains, force mains and maintenance holes.

Sewer System rehabilitation is necessary to maintain the City's aging sewer collection system. Based on the condition assessment from the Sewer Master Plan, it was estimated that over 40 percent of the pipes in the collection system are in need of repair, rehabilitation, or replacement to address significant structural deficiencies. The annual rehabilitation project has steadily addressed grade 4 and 5 defects to reduce the estimate provided in the Sewer Master Plan. Replacing the programmed funding is based on the San Carlos Wastewater Cash Flow projections of the Sewer Financial Plan & Rate Studies prepared by Bartle Wells Associates in 2019 and HF&H Consultants in 2023. The additional appropriations will address more grade 4 and 5 defects as well as replace additional lower laterals. Overall, the Project aims to reduce sanitary sewer overflows, additional staff time needed to address and maintain the sewer system, and retaining contractors to perform emergency repairs at higher costs.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Master Plan; Safety; Legal mandate and
requirement; and Council's Strategic Plan
Duration
Status
Programmed Funding
Continuous.

On-going.

11.b
June 22, 2026 Packet Pg. 879
6 Citywide
Public Works Yes
Alex Tat
Sewer 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - $ - $ - $ 50,000 $ 550,000 $ - $ - $ 600,000 $ Total $ - $ - $ - $ 50,000 $ 550,000 $ - $ - $ 600,000
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - $ - $ - $ - $ - $ - $ - $ -
Total Capital Project
$ - $ - $ - $ 50,000 $ 550,000 $ - $ - $ 600,000
X Climate Change Mitigation, Adaptation & Resilience
Downtown Insert photo here
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
Current Strategic Plan Objective
Future Impact on Operating Budget
This is a capital improvement project funded by transfers from the Annual Sewer System Rehabilitation Program (C9617) during FY2026-27 and FY2027-28. No anticipated impact on operating budget.

C2601: Maintenance Hole and Force Main Assessments - NEW Description
The 2025 settlement with California River Watch requires a full assessment of the entire sanitary sewer system network force mains and maintenance holes.

In FY2026-27, approximately $50,000 will be transferred into the project from the Annual Sewer System Rehabilitation Program (C9617) to support sewer system condition assessment work outlined in the 2025 settlement with California River Watch. The settlement stipulates a full condition assessment of all maintenance holes in the City, of which there are approximately 3,300, within five years of the agreement.

In FY2027-28, approximately $550,000 will be transferred into the project from the Annual Sewer System Rehabilitation Program (C9617) to support continued maintenance hole assessment work as well as force main assessment work outlined in the same settlement. The settlement stipulates a full condition assessment of all force mains in the City within five years of the agreement.

Justification
Maintenance hole assessments are performed to ensure the integrity of the sewer system by identifying defects or detecting inflow and infiltration into the wastewater system. The River Watch settlement stipulates condition assessments that may include Manhole Assessment and Certification Program (MACP) Level 1 inspections, which provide basic condition assessment information to evaluate the general condition of a manhole, and Level 2 inspections, which gather detailed information to fully document all defects, determine condition of the manhole, and provide the specific information needed to recommend corrective action.

Force main assessments help identify portions of force mains at risk of failure. The settlement stipulates strategies that include a desktop study, leak detection, and/or gas pocket detection using acoustic sensing technologies or similarly accepted industrial detection methods.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Master Plan; Safety; Legal mandate and
requirement; and Council's Strategic Plan
Duration
Status
Programmed Funding
July 2026 to June 2030
New project request.

11.b
June 22, 2026 Packet Pg. 880
25 Public Works Yes
Steven Machida Transportation Infrastructure
Traffic & Transportation, Facilities 3
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses 184,728 $ 25,075 $ - $ - $ - $ - $ - $ 184,728 $ New request - $ - $ (159,653) $ - $ - $ - $ - $ (159,653) $ Total $ 25,075 184,728 $ (159,653) $ - $ - $ - $ - $ 25,075 $ Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - $ - $ - $ - $ - $ - $ - $ -
Total Capital Project
$ 25,075 184,728 $ (159,653) $ - $ - $ - $ - $ 25,075 $ Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
X Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project
Downtown - Laurel Street, San Carlos
Avenue and the Wheeler Plaza Garage
Current Strategic Plan Objective
Future Impact on Operating Budget
Approximately $11,400 per fiscal year for Camera License Keys and software integration subscription, which will be integrated into the Police Services Contract.

C1753: Parking Management System Expansion and Extension - AMENDED Description
This project will provide a parking management system and guided parking enforcement program in the Wheeler Plaza Parking Garage. Streetline, Inc. was hired to equip the garage with parking sensors; however, they are no longer in business. Therefore, Vigilant Solutions was contacted to provide this service in the garage. The project will use Automated License Plate Reader (ALPR) cameras instead of individual parking sensors in each stall.

Justification
This proposed project will replace the now obsolete parking sensor equipment with an ALPR system. The Sheriff's Office staff is already familiar with the Vigilant Solution platform, and attended a demonstration and provided operational feedback. The use of ALPRs as a parking management system will provide real time parking space availability, which is relayed to the electronic parking sign on Walnut Street. Additionally, ALPRs will enhance enforcement, serve as an abandoned vehicle investigative aid, and reduce the need to mark vehicles with chalk or stickers in most cases.

The system will provide the ALPR images to TurboData, our electronic citation management platform. Enforcement staff will be able to link ALPR reads to the citations issued, providing evidence when reviewing arguments from violators who contest that they moved their vehicle. The system will also assist with confirming if a citation was issued in error during any review.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

X
Project Manager:

Duration
Status
Programmed Funding
July 2021 to June 2026
Moved to unfunded.

11.b
June 22, 2026 Packet Pg. 881
25 2nd Floor City Hall
Public Works / Facilities No
Chris Valley & Steve Machida Infrastructure
Facilities & Technology 2
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ 1,750,000 $ - $ - $ - $ - $ 1,750,000 $ New request - $ - $ (1,750,000) $ - $ - $ - $ - $ (1,750,000) $ Total $ - - $ - $ - $ - $ - $ - $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ - $ - $ - $ - $
Climate Change Mitigation, Adaptation & Resilience to this project? (check boxes to left) Downtown
Housing Insert photo here
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project
C2414: 2nd Floor City Hall Remodel
Description
This project would consist of remodeling and updating the 2nd floor of City Hall (south end) to provide a more efficient layout and employee work area for Public Works staff and permitting services, as well as the "Q Branch" of the City Manager's Office, Emergency Operations, the City Attorney's Office, and the employee break room. Accessibility upgrades and removal of barriers is proposed in the second floor restrooms with this project.

Justification
In the last 10 years, City Hall has had sizeable tenant improvement work in the Community Development Department and Council Chambers. There has been minor tenant improvement work in other areas of the structure; however, as staffing has grown and the demand for City services increased, there is a need to provide a more efficient use of City Hall at the south end of the 2nd floor office area. Public Works currently has staff at City Hall and second floor library. This project would provide sufficient working space to bring department staff together.

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Duration
Status
Programmed Funding
Tentative construction timeline April 2025 through December 2025.

Moved to unfunded.

X
Current Strategic Plan Objective
Future Impact on Operating Budget
Annual facility costs will be absorbed into the existing operating budget.

11.b
June 22, 2026 Packet Pg. 882
25 Various
Public Works Yes
Jana Cadiz Safety
Streets & Sidewalks 3
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 830,000 $ 31,421 $ - $ - $ - $ - $ - $ 830,000 $ New request - $ - $ (735,000) $ - $ 735,000 $ - $ - $ - $ Total $ 31,421 830,000 $ (735,000) $ - $ 735,000 $ - $ - $ 830,000 $ Fund Financing Sources
Grant Funding
New request - $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ 31,421 830,000 $ (735,000) $ - $ 735,000 $ - $ - $ 830,000 $ Climate Change Mitigation, Adaptation & Resilience
Downtown Insert photo here
Housing
X Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
Current Strategic Plan Objective
Future Impact on Operating Budget
Negligible impact. Countdown pedestrian signals (CPS) and accessible pedestrian signals (APS) may require occasional maintenance, with an anticipated cost of approximately $500 per unit.

Duration
Status
Programmed Funding
Estimated FY2024-25 to FY2028-29
Countdown pedestrian signal (CPS) installations are complete, however, all pedestrian push buttons are still required to be upgraded with ADA‑compliant accessible pedestrian signal (APS). Staff is currently identifying and prioritizing strategic locations for APS installation.

Approximately $60,000 is needed in the current fiscal year to support design work for these priority locations, with the remaining funding proposed to be moved to FY2028-29.

C1725: Upgrade Pedestrian Signal Heads to Countdown Pedestrian Signals - AMENDED Description
This project will fund the upgrade of pedestrian signal heads at signalized intersections to countdown pedestrian signal (CPS) heads as well as the upgrade of pedestrian pushbuttons to accessible pedestrians signals (APS).

Justification
Countdown pedestrian signals (CPS) are used to supplement traditional pedestrian signals with flashing numbers that count down the number of seconds remaining until the end of the pedestrian change interval. Studies of the effectiveness of CPSs have concluded that they provide pedestrians with more useful information that helps them to cross the street more safely. While CPSs upgrades are performed, pedestrians pushbuttons can also be brought up to date with ADA compliance with accessible pedestrian signals. Additional funding is requested as the cost has increased and grant funding is no longer available.

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11.b
June 22, 2026 Packet Pg. 883
25 Various locations
Public Works Yes
Lou Duran / Hanieh Houshmandi Safety, Maintenance, Environment Streets & Sidewalks 3
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 335,000 $ 225 $ - $ - $ - $ - $ - $ 335,000 $ New request - $ - $ (330,000) $ - $ 330,000 $ - $ - $ - $ Total $ 225 335,000 $ (330,000) $ - $ 330,000 $ - $ - $ 335,000 $ Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ 225 335,000 $ (330,000) $ - $ 330,000 $ - $ - $ 335,000 $ Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
X Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
Recreation Services
Capitalized Project Non-Capitalized Project X
Current Strategic Plan Objective
Future Impact on Operating Budget
Streetlights may require occassional maintenance at an anticipated cost of approximately $3,000 each.

Duration
Status
Programmed Funding
July 2022 to June 2028
In progress. Previously appropriated funds have been shifted to FY28 to optimize the allocation of the overall fund balance across higher priority projects.

C1728: 5kv Streetlight Conversion - AMENDED
Description
Convert existing 5 kilovolt Regulated Output streetlights to LED.

Justification
The City currently has 56 streetlights that are powered by 5 kilovolt (kv) Regulated Output Circuits. These streetlights are outdated and replacement parts are no longer available fo repairs. As a result, some of these streetlights have been out of service for many months or longer than a year. Converting these to LED will eliminate maintenance issues and most importantly, restore street lighting to the areas where the lights are out of service, improving public safety.

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11.b
June 22, 2026 Packet Pg. 884
25 Citywide
Community Development Department Yes
Akanksha Chopra Necessary Update
Facilities 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses 200,000 $ - $ 329,100 $ 329,100 $ - $ - $ - $ 858,200 $ New request - $ - $ (200,000) $ - $ - $ - $ - $ (200,000) $ Total $ - 200,000 $ 129,100 $ 329,100 $ - - - 658,200 $ Fund Financing Sources
MTC Grant - $ - $ 261,600 $ 261,600 $ - $ - $ - $ 523,200 PCE Match - $ - $ 67,500 $ 67,500 $ - $ - $ - $ 135,000 $ Total $ - - $ 329,100 $ 329,100 $ - $ - $ 658,200 $
Total Capital Project
$ - 200,000 $ - $ - $ - $
X Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
X Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project X Non-Capitalized Project
Current Strategic Plan Objective
Future Impact on Operating Budget
Future impact on the operating budget is negligible. The grant will fund operations and maintenance costs of the EV charging stations for three to five years. After the grant period passes, ongoing operations and maintenance costs will be paid for by the city, covered by revenue generated from electricity sales.

Duration
Status
Programmed Funding
The project is estimated to begin in 2026 with construction completed in June 2028.

The project is currently in progress. The total cost of $658,200 will be fully funded through the MTC and PCE grants, and the original $200,000 appropriation will no longer be needed.

C2336: Installation of New EV Stations in Public Parking Lots (Downtown) - AMENDED Description
The city has a total of ten electric vehicle (EV) charging stations at Wheeler Plaza Garage and the library's underground parking lot. The transition to an EV platform from internal combustion engines will require the construction of additional charging stations throughout the city. In March 2025, the City of San Carlos, in collaboration with the County of San Mateo and multiple cities, was awarded the Metropolitan Transportation Commission’s (MTC) 2024 Climate Program Implementation Grant for downtown public electric vehicle charging infrastructure. The city will receive $658,131 to fund six curbside EV charging stations on the 700 block of Walnut Street near 737 and 777 Walnut Street; three curbside chargers on the 600 block of Walut Street near 657 Walnut Street; five EV charging stations in the Wheeler Plaza Garage; and four EV charging stations in Clark Plaza. $523,000 will come from the Metropolitan Transportation Commission, while a $135,000 match will be provided by Peninsula Clean Energy in the form of rebates.

Justification
This project is consistent with the Council's strategic goals to promote Climate Change Mitigation, Adaptation, and Resilience as well as Mobility, Traffic and Transportation Infrastructure. California regulations require all new cars sold in 2035 and beyond to be zero emission vehicles. In response, more auto manufacturers are producing EV versions of their cars and trucks. To accommodate the influx of new EV vehicles, more infrastructure is needed. Installing new EV chargers in city public parking spaces will make these facilities available to a larger segment of the community.

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11.b
June 22, 2026 Packet Pg. 885
25 Belmont Creek
Public Works Yes
Steven Machida Safety; Response to Nature or Emergency
Storm 5
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses 500,000 $ 231,516 $ 550,000 $ - $ - $ - $ - $ 1,050,000 $ New request - $ - $ (384,000) $ - $ - $ - $ - $ (384,000) $ Total $ 231,516 500,000 $ 166,000 $ - $ - $ - $ - $ 666,000 $ Fund Financing Sources
Resources - $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ 231,516 500,000 $ 166,000 $ - $ - $ - $ - $ 666,000 $ X Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
C9806: Belmont Creek Watershed Improvement - AMENDED
Description
This project would construct an upstream detention facility in the City of Belmont and restore the eroding creek banks to reduce sediment transport and downstream flooding of Belmont Creek in and around Industrial Road in San Carlos. San Carlos is partnering with the City of Belmont and San Mateo County on this joint project.

Justification
Historically, during major storm event, Belmont Creek floods out of its channel into surrounding properties. A portion of the creek is the responsibility of the City of San Carlos. City staff will continue to work collaboratively with the City of Belmont, San Mateo County, and private property owners to study and develop the solutions to minimize flooding.

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Current Strategic Plan Objective
Future Impact on Operating Budget
There is no impact to San Carlos, as this project is located in Belmont and will be their responsibility to maintain moving forward. This will be formalized in the Funding Agreement between the agencies.

Duration
Status
Programmed Funding
July 2023 through June 2027.

Belmont is leading the design effort.

11.b
June 22, 2026 Packet Pg. 886
25 Industrial Road Area
Public Works Yes
Alex Tat and Lou Duran
Storm 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses 3,408,369 $ 2,118,390 $ - $ - $ - $ - $ - $ 3,408,369 $ New request - $ - $ (650,000) $ - $ 650,000 $ - $ - $ - $ Total $ 3,408,369 $ 2,118,390 $ (650,000) $ - $ 650,000 $ - $ - $ 3,408,369 Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ 2,118,390 3,408,369 $ (650,000) $ - $ 650,000 $ - $ - $ 3,408,369 $ X Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
Master Plan; Safety; Council's Strategic
Plan
Duration
Status
Programmed Funding
Ongoing
In progress. A portion of previously appropriated funds has been shifted to FY28 to optimize the allocation of the overall fund balance across high priority projects. This adjustment does not affect the project's progress.

Current Strategic Plan Objective
Future Impact on Operating Budget
The sediment removal reduces costs and significant clean ups related to flooding.

C9828: Storm Channel Sediment Removal - AMENDED
Description
The purpose of this project is to remove accumulated sediment in channels under and adjacent to Industrial Road. Channel dredging requires various federal and state permits. The first phase is to obtain all necessary permits for annual maintenance dredging.

Justification
The Industrial Road area experiences frequent flooding, which has a detrimental effect on the economic viability of the area. Furthermore, sediment removal imposes significant cleanup costs for the City and for private property owners.

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11.b
June 22, 2026 Packet Pg. 887
25 East Side
Community Development No
Lisa Porras Master Plan
Planning 2
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 200,000 $ - $ 150,000 $ - $ - $ - $ - $ 350,000 $ New request - - - 1,454,000 - - - 1,454,000
Total $ - 200,000 $ 150,000 $ 1,454,000 $ - $ - $ - $ 1,804,000 $ Fund Financing Sources
SMCTA - Grant - $ - $ - $ 1,290,000 $ - $ - $ - $ 1,290,000 $ Total $ - - $ - $ 1,290,000 $ - $ - $ - $ 1,290,000 $
Total Capital Project
$ - 200,000 $ 150,000 $ 164,000 $ - $ - $ - $ 514,000 $ Climate Change Mitigation, Adaptation & Resilience
Downtown Insert photo here
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project
Duration
Status
Programmed Funding
This project is expected to take 36 months to complete, with project kickoff expected in June 2026 with completion in June 2029.

An RFP to complete this work is expected for release by the end of April 2026, with a contract presented to the City Council in May 2026, and project kickoff in June 2026.

Current Strategic Plan Objective
Future Impact on Operating Budget
Following completion of this project, implementation would impact the budget. While some improvements to streets will be completed by developers, other work may fall under the responsibility of the City and need funding.

X
C2207: East Side Integrated Transportation and Streetscape Master Plan - AMENDED Description
The East Side Innovation District Vision Plan ("Plan") was approved by the City Council in October 2022. The Plan contains 10 "Big Moves" for transformation in the district. Big Move #1 is to convert Industrial Rd. into a functional greent boulevard, with active transportation, that provides a distinct identity, creates a sense of place, and weaves nature into the district. To achieve this, an integrated transportation and streetscape master plan will be developed and establish street specifications to implement discovery paths, non-vehicular connections, and street standards including dimensions for sidewalk and protected bicycle lanes. Street furniture, directional signage, landscaping, stormwater, street trees and other elements will also be incorporated. The Northeast Area Specific Plan, which is underway and will be adopted in 2026, includes policy direction for Industrial Rd. and Old County Rd. and other streets that will also be addressed and incorporated into this Plan. This project is intended to address the full breadth of the East Side area, from Belmont to Redwood City, and from Old County Rd. to Industrial Rd. (excepting the Greater East San Carlos neighborhood). A traffic study to evaluable the feasibility and tradeoffs of a road diet on Industrial Rd. is also included, as well as advancing the approved redesign of Industrial Road to 35% construction drawings.

Justification
The current budget from Fund 25 is $350,000 and supports the goals for improved streets as set forth in both the East Side Innovation District Vision Plan and the Northeast Area Specific Plan, each of which calls for the redesign of Industrial and Old County Roads. In 2026, the City was awarded a $1,290,000 grant to support expanded technical analysis of Industrial Road and to advance the approved design to 35% construction drawings. This project also contemplates the need for contigencies as part of an upcoming professional services agreement; it is recommended to add 10% of the project costs as contingency funds (or $164,000).

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11.b
June 22, 2026 Packet Pg. 888
25 Library
Public Works No
Alex Tat
Library 2
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses - $ 34,606 $ 300,000 $ - $ - $ - $ - $ 300,000 $ New request - - 350,000 - - - - 350,000
Total $ 34,606 - $ 650,000 $ - $ - $ - $ - $ 650,000 $
Fund Financing Sources
SMC Library Funding - $ - $ 300,000 $ 350,000 $ - $ - $ - $ 650,000 $ Total $ - - $ 300,000 $ 350,000 $ - $ - $ - $ 650,000 $ Total Capital Project
$ 34,606 - $ 350,000 $ (350,000) $ - $ - $ - $ - $
Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project
Current Strategic Plan Objective
Future Impact on Operating Budget
The elevator upgrade is anticipated to have minimal future impact on the operating budget beyond standard maintenance and service costs.

Duration
Status
Programmed Funding
FY 2026-27
The construction bid documents are completed and the project was advertised for construction bids. The project will be recommended for award to the lowest responsible and responsive bidder.

Grant Funded, Previously Funded, or
Partially Funded
X
C2518: Library Elevator Upgrade - AMENDED
Description
This project involves the upgrade of the existing elevator system at the library to enhance functionality, aesthetics, and overall user experience. The planned improvements include the replacement of the interior cab controls, hall stations (call buttons and indicator lights), lantern lights, and the tank unit controller located in the elevator machine room. In addition, the elevator cab interior will be updated with new panels, lighting, and flooring.

The existing fire alarm panel will be updated to be compatible with the new fire alarm devices required to be installed as part of the elevator upgrade. All work will be coordinated to ensure minimal disruption to library operations while modernizing the elevator’s performance and appearance.

Justification
The library elevator is a strong candidate for an upgrade due to its age and the availability of more modern components that offer improved efficiency, functionality, and design. Updating the elevator will provide a more comfortable, safe and user-friendly experience for library patrons and staff, while aligning with the City’s broader efforts to invest in long-term improvements to public facilities. This project supports the continued upkeep and modernization of infrastructure in a high-use community space.

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11.b
June 22, 2026 Packet Pg. 889
25 Citywide
Public Works Yes
Jana Cadiz Safety
Traffic & Transit 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ 56,792 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 2,500,000 $ New request - $ - $ - $ 730,000 $ 150,000 $ 150,000 $ 150,000 $ 1,180,000 $ Total $ 56,792 - $ 500,000 $ 1,230,000 $ 650,000 $ 650,000 $ 650,000 $ 3,680,000 $ Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ 56,792 - $ 500,000 $ 1,230,000 $ 650,000 $ 650,000 $ 650,000 $ 3,680,000 $ Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply Downtown
Housing to this project? (check boxes to left)
X Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
Recreation Services
Capitalized Project Non-Capitalized Project
Future Impact on Operating Budget
Capital improvement projects may be developed based on the study.

Duration
Status
Programmed Funding
FY 2026-30
Currently in progress, however, additional funding is needed to support higher than anticipated volume of resident-initiated request for traffic improvements to address community safety concerns.

X
C2504: Traffic Studies and Pilot Improvements - AMENDED Description
This project will fund a range of traffic improvements throughout the city to address community safety concerns. It supports more efficient responses to resident inquiries, including intersection all-way stop control evaluations, safety analyses, speed surveys, neighborhood cut-through studies, traffic signal operations concerns, and the development of related traffic studies and policies. The project also includes initial, quick-build, or pilot improvements that respond to elevated community concerns while longer-term enhancements are developed Due to a higher volume of resident‑initiated requests than originally anticipated, additional funding is needed for consultant services to support staff and construction activities. Current staff capacity is limited, and additional resources are necessary to keep pace with project demands.

Justification
In 2018, the Council approved a Neighborhood Traffic Management Program (NTMP) to help meet the needs of San Carlos community members.

The NTMP was based on past efforts by the City, guidance provided by the City’s General Plan, policies and lessons learned from other jurisdictions, practices published by the transportation industry, and community input regarding traffic concerns and ideas for improvement. The traffic calming measures were categorized as Level 1 or Level 2. Level 1 measures focus on easily implementable and relatively low cost features such as enhancing the visibility of crosswalks, striping narrow lanes, providing speed limit signs, installing high visibility crosswalks, providing additional informational signs and installing new regulatory signs, which is mainly funded by our striping and marking project. Level 2 measures focus on a combination of Level 1 measures, plus vertical or horizontal deflections such as speed humps, speed bumps, speed cushions, speed tables, pedestrian refuges or islands, median diverters, chicanes, or barriers. Since Level 2 measures impact many people in a neighborhood and the measures tend to be more costly, it is necessary to dedicate a separate funding source to fund the Level 2 traffic calming improvements. The funding is requested for Level 2 measures as this project funds larger initial steps that we need to take to address service requests that the professional services account cannot cover.

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Current Strategic Plan Objective

11.b
June 22, 2026 Packet Pg. 890
25 Adult Community Center
Parks and Recreation Yes
Amy Newby Safety, Necessary Upgrade
Facilities 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ 15,415 $ 223,900 $ - $ - $ - $ - $ 223,900 $ New request $ - $ - $ - $ 1,200,000 $ - $ - $ - $ 1,200,000 Total $ 15,415 - $ 223,900 $ 1,200,000 $ - $ - $ - $ 1,423,900 $ Fund Financing Sources
Parks and Recreation
Donations Reserve - $ - $ 200,000 $ 331,478 $ - $ - $ - $ 531,478 $ Total $ - - $ 200,000 $ 331,478 $ - $ - $ - $ 531,478 $ Total Capital Project
$ 15,415 - $ 23,900 $ 868,522 $ - $ - $ - $ 892,422 $
Climate Change Mitigation, Adaptation & Resilience
Downtown to this project? (check boxes to left)
Housing
Mobility, Traffic & Transportation Infrastructure Insert photo here Northeast Area Specific Plan
X Recreation Services
Capitalized Project Non-Capitalized Project
Future Impact on Operating Budget
It is anticipated the remodel will reduce maintenance staff time repairing broken equipment. A more efficient kitchen layout and systems may increase the number of meals staff is able to prepare for the Curbside Lunch program which would result in a nominal increase in both cost of groceries as well as an incease in revenue.

Duration
Status
Programmed Funding
FY2025-26 to FY2027-28
Design services are currently underway. Additional funding is needed to support the upcoming construction phase, which is anticipated to begin as early as late 2026.

X
C2515: Adult Community Center Kitchen Remodel Design & Construction - AMENDED Description
The proposed kitchen remodel at the Adult Community Center would include a full assessment of current program needs and analysis of deficiencies in operations due to facility design. A remodel may include a reconfiguration of the kitchen layout; better utilization of space; new kitchen equipment, including an industrial dishwasher, refrigerator and freezers, commercial grade sink and stations; and better functionality in the meal prep area. The cost for the project will be partially offset by the Parks and Recreation Donation Reserve.

Justification
The kitchen at the Adult Community Center is in need of a renovation. Staff have shared several concerns including: the configuration of the stove/cooking area poses a safety hazard; dimensions of the stove are not suitable for the available space; the industrial dishwasher is over 40 years old and often in need of repair and requires staff to wash dishes by hand in a method that meets safety standards; and a number of loose floor tiles and buckled flooring pose a tripping hazard. Additionally, the original kitchen was configured to be utilized as a cafeteria-style operation, which is no longer the operation of the meal program.

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Current Strategic Plan Objective

11.b
June 22, 2026 Packet Pg. 891
25 700 Block of Laurel, Centennial Plaza
Public Works Yes
Grace Le Downtown, Council's Strategic Plan
Downtown 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 394,707 $ $ 394,707
New Requests (394,707) $ 10,000,000 $ $ 9,605,293
Total $ - - $ - $ 10,000,000 $ - $ - $ - $ 10,000,000 $ Fund Financing Sources
Developer Contribution - $ - $ $ - - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
- $ - $ - $ 10,000,000 $ - $ - $ - $ 10,000,000 $
Climate Change Mitigation, Adaptation & Resilience
X Downtown Insert photo here
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
Duration
Status
Programmed Funding
Construction of Phase 1B, Centennial Plaza, is anticipated from Spring 2027 to Spring 2029.

This project is a new phase of on-going Downtown Revitalization project. Additional funding is being requested to proceed with construction. Total request is up to available fund balance. Additional budget will be allocated as and when development funds come in.

Current Strategic Plan Objective
Future Impact on Operating Budget
The future impact on the operating budget is to be determined once the improvements are authorized by the Council. Operating budgets will need to be updated to account for the maintenance of new improvements once construction is complete.

C2525: Downtown Renovation Plan Implementation - 1B Centennial Plaza - AMENDED Description
Centennial Plaza represents the second part of Phase One of the Downtown Revitalization project. Planned improvements include upgraded decorative streetscape and sidewalks, enhanced pedestrian and street-level lighting, new and updated landscaping, public art features, movable hydraulic street bollards, a water feature, and a pavilion canopy with a stage and AV equipment. These enhancements will be located along the 700 block of Laurel Street.

Justification
This project aligns with City Council's Downtown strategic goal which seeks to ensure that the improvements "meet the needs of the community and businesses now and into the future."
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11.b
June 22, 2026 Packet Pg. 892
25 Holly Street and Highway 101 Interchange
Public Works Yes
Grace Le Safety, Grant funding
Traffic & Transit 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30 Total Project Funding
Approved Expenses 8,543,830 $ 8,310,663 $ 5,000,000 $ 5,000,000 $ - $ - $ - $ 18,543,830 $ New request - Transfer to
Medium Term Project $ - - $ (791,000) $ - $ - $ - $ (791,000) $ New Request $ 2,620,000 $ 5,000,000 $ 75,281,000 $ 12,500,000 $ 95,401,000 Total $ 8,310,663 8,543,830 $ 4,209,000 $ 7,620,000 $ 5,000,000 $ 75,281,000 $ 12,500,000 $ 113,153,830 $ Fund Financing Sources
Traffic Mitigation Fee 1,116,746 $ 1,116,746 $ - $ - $ - $ - $ - $ 1,116,746 $ Measure A - Highway 2,818,710 $ 2,818,710 $ - $ 2,620,000 $ 5,000,000 $ 75,281,000 $ - $ 85,719,710 Bike Path Program Funding 100,000 $ 100,000 $ - $ - $ - $ - $ - $ 100,000 Bicycle Pedestrian Imp (BPIP) - $ - $ - $ - $ - $ - $ - $ - TDA Article 3 400,000 $ 400,000 $ - $ - $ - $ - $ 400,000 Active Transportation Program
(ATP) $ - - $ - $ - $ - $ - $ - $ -
Transfer from Measure A Fund 350,000 $ 350,000 $ - $ - $ - $ - $ - $ 350,000 Facility Infrastructure Imp Reserve $ - - $ - $ - $ - $ - $ - $ - PAMF Contribution/Donations $ 523,000 $ 523,000 $ - $ - $ - $ - $ - 523,000 Bay Area Air Quality Grant
(Bike/Ped) $ - - $ - $ - $ - $ - $ - $ -
Successor Agency Bond
Proceeds $ 1,368,742 1,368,742 $ - $ - $ - $ - $ - $ 1,368,742 STIP $ - $ - $ - $ - $ 12,500,000 12,500,000
Transportation-HUD
Appropriations Bill $ - - $ - $ 500,000 $ - $ 500,000
Total $ 6,677,198 6,677,198 $ - $ 2,620,000 $ 5,000,000 $ 75,781,000 $ 12,500,000 $ 102,578,198 $ Total Capital Project
$ 1,633,465 1,866,632 $ 4,209,000 $ 5,000,000 $ - $ (500,000) $ - $ 10,575,632 $ Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
X Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project X Non-Capitalized Project
C9459: Holly St/US 101 Interchange and Pedestrian Overcrossing - AMENDED Description
The original scope of the project will convert the existing interchange to a partial cloverleaf design, realign the on- and off-ramps, and add new signalized intersections to eliminate the weaving conflicts. This longer-term project will also construct a new overcrossing exclusively for pedestrians and cyclists to promote alternative modes of transportation and enhance safety. In addition to the longer-term project, the city is exploring near-term improvements to address bike and pedestrian safety on the interchange.

The total projected cost for the long‑term project is $116 million, of which 75 percent is funded by the San Mateo County Transportation Authority Highway Program (SMCTA). The remaining 25 percent is to be covered through a combination of required City required matching funds and other grants, including $12.5 million from the State Transportation Improvement Program and $500,000 from the Transportation HUD Appropriations bill. After accounting for these sources, approximately $7 million of the non‑SMCTA share remains unfunded, and the City is pursuing a Department of Transportation BUILD grant to close this gap and fully fund the project.

Justification
The Palo Alto Medical Foundation Environmental Impact Report identified the need to mitigate traffic impacts at the interchange. The project will address this need and also improve safety for pedestrians and cyclists on Holly Street crossing US Highway 101. In addition, the community has expressed the desire to explore near-term options that can be implemented prior to the longer-term scope of interchange modification and pedestrian/bicycle overcrossing construction.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
Per existing master agreement, Caltrans maintains the structure and City maintains the surface pavement, striping and signage for the interchange. The new pedestrian overcrossing will be maintained by the City.

Duration
Status
Programmed Funding
Project is anticipated to begin FY26-27 and is anticipated to be complete in FY2032-2033.

Collaborating with San Mateo County Transportation Authority on grant administration. SMCTA is the implementing agency of this project.

11.b
June 22, 2026 Packet Pg. 893
25 Big Canyon Park
Public Works Yes
Grace Le Council's Strategic Plan, Safety
Storm Drainage 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - 500,000 - - - 500,000
Total $ - - $ - $ 500,000 $ - $ - $ - $ 500,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ 500,000 $ - $ - $ - $ 500,000 $
X Climate Change Mitigation, Adaptation & Resilience
Downtown to this project? (check boxes to left)
Housing
Mobility, Traffic & Transportation Infrastructure Insert photo here Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project
Future Impact on Operating Budget
Once trees and plants are established, maintenance should be minimal.

Duration
Status
Programmed Funding
Design in late 2026 and planting in Spring 2027, with five years of monitoring.

New Project.

X
C2605: Pulgas Creek Watershed - Native Planting Pilot Project - NEW Description
The project involves installing and replacing native plants, treating topsoil, irrigation, and monitoring runoff in the Pulgas Creek Watershed region of San Carlos at Big Canyon Park. The replacement and planting of native plants will help stabilize the soil through natural means and lessen the effects of erosion and soil transportation to further points downstream in the watershed. Site preparation includes minor grading, topsoil preparation, and incorporation of soil amendments. Planting basins are flagged and excavated, and irrigation is laid out. Cages and wire fencing can be installed to prevent herbivore damage to young plants. Planting will occur in winter through mid-spring to take advantage of water availability. Once planted, revegetation sites are regularly weeded and watered to ensure plant establishment. Dead or dying plants are removed and replaced within the first year. The site should be formally monitored for species composition, percent survival, and percent cover every year for five years.

Justification
This project is a recommendation from the adopted Pulgas Creek Watershed Management Plan.

1. Landslide Mitigation: The project will increase vegetation and ground cover, reducing soil erosion. This will improve public safety and reduce property damage during heavy rainfall events.

2. Optimized Land Use: The project leverages an underutilized location within the City, providing habitat for wildlife and enhancing the aesthetic appeal of an existing park.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective

11.b
June 22, 2026 Packet Pg. 894
25 Holly Street and Highway 101 Interchange
Public Works Yes
Grace Le Safety, Grant funding
Traffic & Transit 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ 791,000 $
New Request to transfer from C9459 791,000 $
New Request $ - $ - $ 7,116,000 $ - $ - $ - $ 7,116,000 Total $ - $ - $ 791,000 $ 7,116,000 $ - $ - $ - $ 7,907,000 Fund Financing Sources
Measure A - Highway - $ - $ - $ 7,116,000 $ - $ - $ - $ 7,116,000 Total $ - $ - $ - $ 7,116,000 $ - $ - $ - $ 7,116,000
Total Capital Project
$ - - $ 791,000 $ - $ - $ - $ - $ 791,000 $
Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
X Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project X Non-Capitalized Project
C2606: Holly St/US 101 Interchange and Pedestrian Overcrossing Mid Term - NEW Description
The Mid Term project will pave Holly Street in the project area, remove and relocate all bike lanes to the right pavement edge, install green conflict zones on bike lanes and install Rectangular Rapid Flashing Beacons (RRFB) in the crosswalks across US 101 ramps. The project is anticipated to begin in FY 25-26 and be completed in FY28-29.

The project will be funded by a $7.1 million grant from SMCTA highway program and $791,000 will be transferred from existing C9459 Holly St/US 101 long term project as a match.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
Per existing master agreement, Caltrans maintains structures and City maintains the surface pavement.

Duration
Status
Programmed Funding
Start FY2025-26 and complete in FY2028-29
Collaborating with San Mateo County Transportation Authority for grant administration. SMCTA is the implementing agency of this project.

11.b
June 22, 2026 Packet Pg. 895
25 Citywide
Community Development Yes
Lisa Porras Council's Strategic Plan
Planning 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - 75,000 - - - 75,000
Total $ - - $ - $ 75,000 $ - $ - $ - $ 75,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ 75,000 $ - $ - $ - $ 75,000 $
Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply X Downtown
Housing to this project? (check boxes to left)
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
Recreation Services
Capitalized Project Non-Capitalized Project
Future Impact on Operating Budget
No anticipated additional costs.

Duration
Status
Programmed Funding
This work is anticipated to begin in April 2026 and completed by/before February 2027.

New project request.

X
C2602: Preservation of Ground Floor Commercial Uses - NEW Description
This project consists of implementing Downtown Specific Plan Policy LU-21 an accompanying Action LU-21, which aim to incentivize ground-floor retail, commercial services, and other active uses in downtown designated areas, including along the full extent of El Camino Real. Regulatory incentives could be packaged under a Overlay Zone applied to specific locations. The incentives are intended to support economic vitality, enhance the public realm, and create walkable mixed-use districts. The scope of work includes research and analysis of best practices, outreach to housing developers, training to better understand why certain retail formats might struggle under residential developments, and propose a set of strategies that the City can employ to preserve ground floor non-residential uses, and necessary mapping.

Justification
Funding is requested to develop a comprehensive set of regulatory tools and potential financial incentives to preserve required ground-floor retail and commercial service uses within mixed-use development projects. Recent applications of California State Density Bonus concessions and waivers have created a pathway for developers to seek exemptions from local ground-floor commercial requirements, potentially undermining the City’s longstanding vision for an activated, pedestrian-oriented public realm. Without a proactive response, the cumulative loss of storefront retail and service uses could erode downtown vibrancy, diminish walkability, and weaken the economic ecosystem that supports small businesses and community life.

This effort will evaluate legally defensible regulatory strategies, targeted financial incentives, and feasibility-based alternatives that maintain alignment with State law while reinforcing the City’s policy objectives. Funding will support legal analysis, economic feasibility modeling, stakeholder engagement, and preparation of ordinance amendments and implementation guidelines to ensure tools are practical, equitable, and effective. By investing in a clear and strategic framework now, the City will protect its activated streetscape environment, provide certainty to developers, and affirm its commitment to sustaining a vibrant, mixed-use downtown and El Camino Real/Grand Boulevard Corridor over the long term.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective

11.b
June 22, 2026 Packet Pg. 896
25 Proximal to Caltrain Station
Community Development Yes
Lisa Porras Legal Requirement or Mandate
Planning 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - 25,000 - - - 25,000
Total $ - - $ - $ 25,000 $ - $ - $ - $ 25,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ 25,000 $ - $ - $ - $ 25,000 $
Climate Change Mitigation, Adaptation & Resilience
X Downtown
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
C2603: SB 79 Capacity Analysis - NEW
Description
This project will evaluate potential residential development capacity under two scenarios informed by the requirements of California Senate Bill 79 (SB 79) in the area surrounding the San Carlos Caltrain Station. The analysis will assess theoretical residential density capacity within both a 0.25- mile and 0.5-mile radius of the station to understand how SB 79 standards could influence future housing potential in the transit-adjacent area. Using parcel-level data, the study will identify parcels within the two distance bands and apply SB 79 density assumptions to estimate potential residential unit capacity. The analysis will compare the two scenarios to illustrate differences in development potential, including estimated housing unit yield, parcel redevelopment opportunity, and general development patterns. The results will be summarized through maps, tables, and key metrics to support planning discussions about transit-oriented development around the San Carlos Caltrain Station. The analysis will help inform future policy considerations, land use planning, and long-term housing strategy in the downtown and in consideration of the City's future RHNA assignment.

Justification
Funding for this analysis is recommended to proactively evaluate the impacts of Senate Bill 79 (SB 79), which establishes new state-mandated residential density requirements near major transit stops, i.e. the San Carlos Caltrain Station. As the legislation does not provide implementation funding to local jurisdictions, this work represents a prudent step for the City to understand potential development capacity and planning implications associated with this unfunded state mandate. The analysis will also support early preparation for the City’s next Housing Element update by assessing housing capacity in transit-served areas and identifying potential opportunities and constraints. Conducting this work now will help the City respond more efficiently to evolving state housing requirements and reduce future planning and compliance costs.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
No anticipated additional costs.

Duration
Status
Programmed Funding
This work is anticipated to begin in July 2026 and completed by or before July 2027.

New project request.

11.b
June 22, 2026 Packet Pg. 897
25 Downtown San Carlos
Community Development Yes
Andrew Douglass Council's Strategic Plan
Planning 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - 250,000 - - - 250,000
Total $ - - $ - $ 250,000 $ - $ - $ - $ 250,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ 250,000 $ - $ - $ - $ 250,000 $
Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply X Downtown
Housing to this project? (check boxes to left)
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
X Recreation Services
Capitalized Project Non-Capitalized Project X
C2604: Downtown Prosperity Team Programming and Support - NEW Description
Per Objective 3 of City Council's Strategic Goal for Downtown, staff has convened an interdepartmental Downtown Prosperity Team (DPT) that will focus on communications, business support, and Downtown activation during the upcoming Downtown Revitalization projects (Harrington Park Refresh and Centennial Plaza Transformation). The requested funds will be used to minimize construction impacts on residents, visitors, and businesses and could take such forms as: purchases of ADA-accessible ramps to support temporary business access, purchase of wayfinding signage to direct pedestrians around Downtown construction sites, purchase of temporary business identification banners, facade improvement grants, and/or temporary public art displays, among a variety of other solutions. Potential programs will be presented to City Council during a study session on March 23, 2026.

Justification
During the 2026 Strategic Planning Retreat, there was consensus among the City Council members that if the City could only accomplish one thing this year, it should be successful completion of Downtown Revitalization Phases 1A and 1B with effective, high-quality communication and managed disruptions.These funds are a direct outcome of that objective, and are necessary to ensure the high level of communication, activation, and business support the City Council and community are expecting. DPT programs will also support implementation of the Downtown Specific Plan, Downtown Streetscape Master Plan, and 2025-28 Economic Development Plan.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
It is possible similar support funds may be needed in the future as the City gradually implements the Downtown Streetscape Master Plan and commences projects outside the 700 block of Laurel Street.

Duration
Status
Programmed Funding
Downtown Prosperity Team programming will commence in Spring 2026 (concurrent with the Harrington Park Refresh project) and is anticipated to continue through completion of the work on Centennial Plaza (currently estimated as early 2029).

The Downtown Prosperity Team has already begun its work to support the Harrington Park Refresh project. The Downtown Prosperity Team will be presenting a draft work plan (including potential uses of funds) during a City Council study session on March 23, 2026.

11.b
June 22, 2026 Packet Pg. 898
25 Youth Center
Public Works No
Amy Newby Master Plan
Facilities 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30 Total Project Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - - 30,000 - - 30,000
Total $ - $ - $ - $ - $ 30,000 $ - $ - $ 30,000
Fund Financing Sources
YC Donation Account - $ - $ - $ - $ 30,000 $ - $ - $ 30,000 $ Total $ - $ - $ - $ - $ 30,000 $ - $ - $ 30,000
Total Capital Project
$ - $ - $ - $ - $ - $ - $ - $ -
Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply Downtown
Housing to this project? (check boxes to left)
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
X Recreation Services
Capitalized Project Non-Capitalized Project
Future Impact on Operating Budget
There is no future impact on the operating budget.

Duration
Status
Programmed Funding
FY 2026-27.

New project request.

X
C2607: Youth Center Zen Den Improvements - NEW
Description
The Youth Center Zen Den provides a quiet space for youth to destress and unwind during the After School Drop-In program and summer camps. However, the room shares a wall with the active Game Room space which includes a foosball table, pool table and an arcade basketball hoop game. The two spaces have conflicting uses and therefore, staff is recommending the installation of sound proofing and sound absorbing panels in both rooms to reduce the noise spillover.

Justification
The Zen Den programming has continued to develop and grow in the last five years to include activities such as wellness poetry workshops, yoga, and art relaxation projects while also serving as a safe space to calm down for kids who are overstimulated. Participants share that the noise is distracting, impeeds on their ability to destress, and makes the Zen Den less desireable to spend time in. Additionally, when staff are working to calm down kids in distress, staff have determined that the additional noise from the Game Room further creates more distractions.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective

11.b
June 22, 2026 Packet Pg. 899
25 Citywide
ASD No
William Hoch Legal Requirement or Mandate
Information Technology 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30 Total Project Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - 60,000 - - 60,000
Total $ - $ - $ - $ 60,000 $ - $ - $ - $ 60,000
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $
Total $ - $ - $ - $ - $ - $ - $ - $ -
Total Capital Project
$ - $ - $ - $ 60,000 $ - $ - $ - $ 60,000
Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply Downtown
Housing to this project? (check boxes to left)
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
Recreation Services
Capitalized Project Non-Capitalized Project X
C2608: Migration to sancarlos.gov Domain - NEW
Description
This project will migrate the City’s primary domain from cityofsancarlos.org to sancarlos.gov in compliance with California Assembly Bill 1637 (AB 1637). The project includes updating identity systems, migrating approximately 150 users, reconfiguring approximately 30 SSO applications, coordinating with vendors, and ensuring continuity of critical services including VPN, HR, finance, and public-facing systems.

Justification
The City currently operates under a .org domain, which does not clearly identify it as an official government entity and increases exposure to phishing and spoofing attacks. AB 1637 requires adoption of a .gov domain by January 1, 2029. This project ensures compliance, improves public trust, and reduces cybersecurity risk.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
There is no future impact on the operating budget.

Duration
Status
Programmed Funding
FY2026-27.

New project request.

11.b
June 22, 2026 Packet Pg. 900
25 City Hall
ASD No
Paul Harris Upgrade/Improvement
Information Technology 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - 35,000 - - - 35,000
Total $ - - $ - $ 35,000 $ - $ - $ - $ 35,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ 35,000 $ - $ - $ - $ 35,000 $
Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project X Non-Capitalized Project
C2609: Tyler Munis Financial System Upgrades - NEW
Description
Capital Asset module - approx. $9,000 one-time project management and implementation, $6,000 ongoing annual maintenance fee.

Content Manager module - approx. $10,000 one-time project management and implementation, $10,000 ongoing annual maintenance fee.

Justification
Finance currently tracks and calculates annual depreciation for the city's capitalized assets on a complex Excel spreadsheet. This can lead to errors and mistakes in the value of assets recorded in the city's accounts and displayed in the financial statements. The Finance division would like to leverage the Tyler Enterprise ERP (Munis) financial system which offers a Capital Asset Management module to make this process more efficient and accurate, more integrated into the existing financial system, and less prone to error.

The current Accounts Payable (AP) process whereby the city's numerous vendors are paid for goods and services received, is somewhat manual and paper-based. The Finance division would like to employ the use of the Tyler Content Manager (TCM) module, added to the existing Tyler Enterprise ERP (Munis) financial system, to allow all invoices to be uploaded to the system during invoice entry and to be stored in an easily accessible format for easy recall. Invoices are currently stored as physical copies in the Finance office. This will assist in moving the AP process online, away from paper-based records, making the entire process more efficient. TCM can and will also be used for a number of other finance processes such as purchase orders, cash receipts and journal entries, thereby reducing paper-usage and increasing process efficiency.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
Approx. $16,000 per year mantenance for both modules - to be included in IT budget Duration
Status
Programmed Funding
Project will take about 6 months to implement.

New project request.

11.b
June 22, 2026 Packet Pg. 901
25 City Hall
ASD No
Paul Harris Master Plan
Information Technology 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - - 75,000 - - 75,000
Total $ - - $ - $ - $ 75,000 $ - $ - $ 75,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ - $ 75,000 $ - $ - $ 75,000 $
Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X
C2610: Cost Allocation Plan and User Fee Study - NEW
Description
The purpose of the study is to ensure that the City is utilizing comprehensive overhead rates and accurately accounting for the true cost of providing various programs and services within City operations. It is the City’s goal to have a well-documented and defensible cost allocation plan that will incorporate general and administrative cost allocations into the budget, identify overhead rates that can be used in the calculation of billable hourly rates for grants, fees, federal reimbursements, and other billings, and develop charges for user fees that comply with Proposition 218. Conducting a comprehensive user fee study is not an annual requirement and only becomes valuable during significant shifts in the organization, local practices, legislative values, or when there are changes in legal requirements.

Justification
The update of the City’s Cost Allocation Plan and User Fee Study is required to maintain accurate overhead distribution, establish fair and legally compliant fee levels, and support long‑term financial sustainability. Best practices recommend completing a comprehensive user fee study every three to five years to ensure that fees remain aligned with current service delivery costs and organizational changes. The City’s last full fee study, completed in May 2022, provided baseline data for updating the fee schedule and included a comparison to other agencies to assess market consistency. An updated study is now necessary to reflect current operational costs, maintain a defensible fee structure, and support transparent and equitable cost recovery practices.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
None
Duration
Status
Programmed Funding
Project to be completed during FY 2027-28. It will take about 6 months to complete.

New project request.

11.b
June 22, 2026 Packet Pg. 902
25 Citywide
Public Works/IT No
Tracy Scramaglia/Rebecca Mendenhall Council's Strategic Plan Information Technology 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - 1,000,000 - - - 1,000,000
Total $ - - $ - $ 1,000,000 $ - $ - $ - $ 1,000,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ 1,000,000 $ - $ - $ - $ 1,000,000 $
Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply Downtown
Housing to this project? (check boxes to left)
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
Recreation Services
Capitalized Project Non-Capitalized Project
Future Impact on Operating Budget
After the first year, the annual cloud subscription is estimated at $130,000.

Duration
Status
Programmed Funding
Phase 1 is estimated to take one year to implement, followed by Phase 2, which is estimated to take nine months.

New project request.

X
C2611: Enterprise Asset Management Implementation - NEW Description
The City is conducting a comprehensive process and technology assessment to support its transition to a modern Enterprise Asset Management (EAM) system. This effort evaluates current workflows, systems, data, and integration points across service requests, work orders, asset management, permitting, Geographic Information Systems (GIS), and capital project tracking.

This project will implement the new EAM system in phases. Phase 1 focuses on establishing core operational capabilities to support daily Public Works activities. This includes service request intake and routing, work order management, selected preventative maintenance activities, and inspections where applicable. Phase 1 will also establish foundational asset and location data, enabling the City to begin tracking infrastructure activities in a more consistent and centralized manner. This phase is intended to standardize processes across departments and transition from manual and disconnected workflows to a more structured, system-driven approach.

Phase 2 will expand system capabilities to support Capital Improvement Program (CIP) project management, engineering functions, and inventory management. This includes enhanced tools for project planning, coordination, and tracking, as well as improved visibility into project status and infrastructure investment. Additional capabilities introduced in this phase will support engineering workflows, integration with asset data, and longterm infrastructure planning, enabling the City to better manage assets across their full lifecycle.

Justification
The City’s current systems and workflows for asset management, service requests, work orders, GIS, permitting, and capital project tracking are fragmented and lack integration, resulting in inconsistent data and reduced operational efficiency. Implementing a modern Enterprise Asset Management (EAM) system will establish a centralized, standardized platform to improve data reliability, streamline workflows, and support coordinated infrastructure management. This project is essential to enable better decision-making and provide a scalable foundation for managing assets across their full lifecycle.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective

11.b
June 22, 2026 Packet Pg. 903
25 Citywide
ASD No
Will Hoch Council's Strategic Plan
Information Technology 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - - - - 765,000 765,000
Total $ - - $ - $ - $ 765,000 $ - $ - $ 765,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ - $ 765,000 $ - $ - $ 765,000 $
Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply Downtown
Housing to this project? (check boxes to left)
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
Recreation Services
Capitalized Project Non-Capitalized Project
Future Impact on Operating Budget
Upon completion of this project, ongoing staffing resources will be necessary to support system maintenance and operations, including the addition of a dedicated GIS Analyst. In addition, the GIS will require ongoing maintenance and support costs estimated at $80,000 annually.

Duration
Status
Programmed Funding
The project is anticipated to run concurrently with the implementation of the new Enterprise Asset Management System (EAM). The full implementation is expected to take approximately two years.

New project request.

X
C2612: GIS System Transition - NEW
Description
The City’s current GIS environment is managed by an external consultant, CalCAD, with limited internal ownership, governance, and direct system access. Although GIS data is used across multiple departments, it is not fully integrated with core operational systems, resulting in inconsistencies in data, limited accessibility, and reduced reliability. As a result, GIS functions primarily as a reference tool rather than a platform that supports day-today asset management and operational workflows.

This project will transition the City from an externally managed system to a fully developed, internally supported GIS platform, improving asset visibility, data integration, and spatial accuracy.

Justification
As the City moves to implement a new Enterprise Asset Management System (EAM), a fully developed and reliable GIS platform is essential.

Establishing a robust GIS foundation will ensure accurate asset data, support system integration, and enable the EAM to function as intended.

Without this investment, the City risks continued inefficiencies and reduced return on its EAM implementation.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective

11.b
June 22, 2026 Packet Pg. 904
26 To be determined
Community Development No
Sajuti Haque
Child Care 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses 1,000,000 $ - $ - $ - $ - $ - $ - $ 1,000,000 $ New request (1,000,000) $ - $ - $ - $ - $ 1,000,000 $ 1,000,000 $ 1,000,000 $ Total $ - - $ - $ - $ - $ 1,000,000 $ 1,000,000 $ 2,000,000 $ Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ - $ - $ 1,000,000 $ 1,000,000 $ 2,000,000 $ Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing
Mobility, Traffic, and Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project
C2327: Child Care Space Reimbursement - AMENDED
Description
This project would make available impact fee revenue to reimburse applicants who choose to meet the child care impact fee requirement by building child care onsite, rather than by paying the fee, and who oversize the child care space provided relative to the value of the impact fee requirement. The amount of the reimbursement will not reduce the value of the applicant's child care obligation; rather, it can partially or fully subsidize the cost incurred by the applicant in excess of what the fee obligation would have been.

Justification
This project may help to expedite the development of child care in San Carlos as it allows projects to move forward at larger scales than initially feasible.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager: Child Care, Own Funding Source
Duration
Status
Programmed Funding
July 2023 to June 2028.

In 2022, the City established a child care impact fee on new commercial development. Over the coming years, funding will be collected through the impact fee as new projects obtain building permits. Some projects may elect to build child care on site and could go beyond the amount required for their project by accessing this additional funding from the city.

X
Current Strategic Plan Objective
Future Impact on Operating Budget
These funds would be drawn from the Child Care Impact Fee, Fund 26. The impact on the operating budget is unknown at this time.

11.b
June 22, 2026 Packet Pg. 905
27 Open Space and Private Open Space
Parks and Recreation Yes
Amy Newby Yes
Parks 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 570,000 $ 250,908 $ 250,000 $ - $ - $ - $ - $ 820,000 $ New request - $ - $ (200,000) $ - $ - $ - $ (200,000) $ Total $ 250,908 570,000 $ 50,000 $ - $ - $ - $ - $ 620,000 $ Fund Financing Sources
P&R Foundation 40,000 $ 40,000 $ 20,000 $ - $ - $ - $ - $ 60,000 $ Total $ 40,000 40,000 $ 20,000 $ - $ - $ - $ - $ 60,000 $ Total Capital Project
$ 210,908 530,000 $ 30,000 $ - $ - $ - $ - $ 560,000 $
Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing Insert photo here
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
X Recreation Services
Capitalized Project Non-Capitalized Project
C2330: Trail Improvements - AMENDED
Description
Project funding will cover the cost of identified trail improvements in Eaton and Big Canyon parks, implement trail connections into adjacent open space parks in neighboring jurisdictions, and private open space land acquisition. Project funding may also be used to implement trail enhancements identified by City Council or the Trails Subcommittee in next three years, including informational signs and online platforms identifying wildlife and plant species found in open space parks.

Justification
In recent years, open space parks and City-maintained trails are being used more than in previous years. In January 2023, the City Council identified a new Strategic Plan goal, Recreation Services. This goal has three stated objectives. One of these objectives is to assess new trail opportunities to implement a Trails Connection Plan. New connections will allow for regional connections to the north, west, and south of San Carlos.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Duration
Status
Programmed Funding
FY2023-26
Ongoing, $200,000 in project cost reduction is requested for FY2025-26.

X
Current Strategic Plan Objective
Future Impact on Operating Budget
Future ongoing costs will vary depending on scale of trail improvements.

11.b
June 22, 2026 Packet Pg. 906
27 Laureola Park
Parks and Recreation Yes
Amy Newby Yes
Facilities 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses 200,000 $ - $ - $ - $ - $ - $ - $ 200,000 $ New request - $ - $ 86,000 $ - $ - $ - $ - $ 86,000 $
Total $ - 200,000 $ 86,000 $ - $ - $ - $ - $ 286,000 $
Fund Financing Sources
Transit Village Reserve 286,000 $ - $ - $ - $ - $ - $ - $ 286,000 $ Total $ - 286,000 $ - $ - $ - $ - $ - $ 286,000 $
Total Capital Project
$ - (86,000) $ 86,000 $ - $ - $ - $ - $ - $
Climate Change Mitigation, Adaptation & Resilience
Downtown
Housing Insert photo here
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
X Recreation Services
Capitalized Project Non-Capitalized Project
C2331: Laureola Park Master Plan - AMENDED
Description
This project will prepare a master plan for Laureola Park to evaluate its potential as the site for a future community and aquatics center. The scope of the project includes community outreach, site analysis, facility programming and space planning, design alternatives, and preparation of cost estimates and funding options.

Justification
The City Council identified this as a Strategic Plan objective as part of a new Recreation Opportunities goal for FY 2023-24. Through the Parks Master Plan outreach process conducted throughout 2024 & 2025, the community identified their top priority for community improvements as a new Aquatic Facility. At the May 11, 2026 City Council meeting, City Council directed staff to move forward with a master plan of Laureola Park Aquatic Facility.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Duration
Status
Programmed Funding
July 1, 2026-December 31, 2027
In progress. Council approved an additional appropriation of $86,000 under Resolution 2026‑041 for project management services. Further funding may be requested if needed.

X
Current Strategic Plan Objective
Future Impact on Operating Budget
Future one-time and ongoing costs shall vary should City Council approve to build new community center.

11.b
June 22, 2026 Packet Pg. 907
27 Various
Parks and Recreation Yes
Amy Newby Strategic Plan
Parks 2
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ 500,000 $ 500,000 $ - $ 1,000,000 $ New request - $ - $ - $ 250,000 $ (250,000) $ - $ - $ - $ Total $ - - $ - $ 250,000 $ 250,000 $ 500,000 $ - $ 1,000,000 $ Fund Financing Sources
PR Foundation - $ - $ - $ - $ 25,000 $ 25,000 $ - $ 50,000 $ Total $ - - $ - $ - $ 25,000 $ 25,000 $ - $ 50,000 $
Total Capital Project
$ - - $ - $ 250,000 $ 225,000 $ 475,000 $ - $ 950,000 $ Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply Downtown
Housing to this project? (check boxes to left)
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
X Recreation Services
Capitalized Project Non-Capitalized Project X
C2517: Parks Master Plan Improvements - AMENDED
Description
This project will include the initial project design for improvements identified in the Parks Master Plan, which is scheduled to be adopted by the Council by the end of 2025.

Justification
The City Council has set this as an objective in the 2025 Strategic Plan. Park improvements will be recommended through the master planning process, which has included a thorough community outreach and engagement process to seek input from the community.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
Future operating budget needs are unknown at this time and will be determined when improvements are identified through the Parks Master Plan.

Duration
Status
Programmed Funding
FY 2026-27 through FY 2028-29
A portion of the funding previously approved for FY2027–28 is being advanced to FY2026–27 to align with the project’s start date.

11.b
June 22, 2026 Packet Pg. 908
Fund 29 TBD
Community Development Yes
Sajuti Haque
Housing 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses 23,100,000 $ 12,471,135 $ - $ - $ - $ - $ - $ 23,100,000 $ New request - $ - $ (10,628,865) $ - $ - $ - $ - $ (10,628,865) $ Total $ 23,100,000 $ 12,471,135 $ (10,628,865) $ - $ - $ - $ - $ 12,471,135 Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - $ - $ - $ - $ - $ - $ - $ -
Total Capital Project
$ 12,471,135 23,100,000 $ (10,628,865) $ - $ - $ - $ - $ 12,471,135 $ Climate Change Mitigation, Adaptation & Resilience
Downtown
X Housing
Mobility, Traffic, and Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project X X
C2332: Affordable Housing Site Acquistion/Construction, Affordable Housing In Lieu - AMENDED Description
This project will explore the acquistion, conversion, and future development of properties for the expansion of affordable housing in the City.

Justification
This project will add severely needed affordable housing to the community, which is identified as a strategic goal of the City Council. Costs are split between two funding sources, Fund 29 and Fund 31. Fund 29 is the City's Affordable Housing In Lieu Fund which contains the funds collected through the City's Commercial Linkage Fee and Housing In Lieu Fees. As the restrictions on Fund 29 are different from those on Fund 31, two CIPs have been created to track them seperately.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager: Housing, Own Funding Source
Current Strategic Plan Objective
Future Impact on Operating Budget
The City intends to acquire real property utlizing funding from the Affordable Housing In Lieu Fund (Fund 29) and the LMI Housing Asset Fund (Fund 31). The impact on the operating budget is unknown at this time.

Duration
Status
Programmed Funding
July 2023 to June 2028.

The City anticipates collecting significant revenue through its Commerical Linkage Fee over the coming years. This funding can be utilized to acquire property and construct affordable housing or convert existing market rate housing to affordable housing. As the City is in the midst of developing its second affordable housing project at 1232 Cherry Street, now is an appropriate time to explore the acquistion of sites for the next project in the community. Possible projects could include ground up development or conversion of existing market rate mulitfamily units to below market rate units.

11.b
June 22, 2026 Packet Pg. 909
29 Cherry Street between Walnut and Laurel
Community Development Yes
Sajuti Haque
Housing 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Expenses 12,742,933 $ 8,487,329 $ - $ - $ - $ - $ - $ 12,742,933 $ New request - $ - $ (4,255,604) $ - $ - $ - $ - $ (4,255,604) $ Total $ 12,742,933 $ 8,487,329 $ (4,255,604) $ - $ - $ - $ - $ 8,487,329 Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - $ - $ - $ - $ - $ - $ - $ -
Total Capital Project
$ 12,742,933 $ 8,487,329 $ (4,255,604) $ - $ - $ - $ - $ 8,487,329 Climate Change Mitigation, Adaptation & Resilience
Downtown
X Housing
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan
Recreation Services
Capitalized Project Non-Capitalized Project
C9754: Cherry Street Below Market Rate Housing Acquisition - AMENDED Description
This project will fund the redevelopment of a site on Cherry Street to create a new affordable housing project. The project includes acquisition of the property at 1232 Cherry Street for assemblage with the adjacent property to create a viable site that can be used for a new, higher-density project.

Additionally, the project allocates a sum for financial contribution to the project.

Justification
This project will add severely needed affordable housing downtown, which is accessible to both transit and employment hubs. The redevelopment of this site would result in 33 affordable family units.

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Housing, Previously Funded, Own Funding
Source
Duration
Status
Programmed Funding
July 2011 to June 2027.

In 2022 the City acquired the property at 1232 Cherry Street. The property adjacent to 1232 Cherry Street is owned by affordable housing developer HIP Housing. The City has entered into a partnership with HIP Housing to redevelop the site into a higher density project. In February of 2023, the City Council approved a Disposition, Development, and Loan Agreement (DDLA) for the project. In June 2023, the Planning and Transportation Commission approved the project design. In December 2024, the City conveyed its land to the Cherry Street Partnership and in April 2025, the project broke ground.

X
Current Strategic Plan Objective
Future Impact on Operating Budget
The City expended $3,075,000 to acquire the property at 1232 Cherry Street and entered into a development agreement with Cherry Street Commons to redevelop the site and provide additional affordable housing units. Per the DDLA, the City approved a loan of $12,860,000 to make the project feasible.

11.b
June 22, 2026 Packet Pg. 910
29 ECR and Eaton
Community Development Yes
Sajuti Haque Council's Strategic Plan
Planning 1
Appropriations
Total Approved
Budget Total Spent
Adopted
2025-26
Proposed
Update
2026-27
Requested
2027-28
Requested
2028-29
Requested
2029-30
Total Project
Funding
Approved Expenses - $ - $ - $ - $ - $ - $ - $ - $
New request - $ - $ - $ 88,000 $ 12,000 $ - $ - $ 100,000 $ Total $ - - $ - $ 88,000 $ 12,000 $ - $ - $ 100,000 $
Fund Financing Sources
- $ - $ - $ - $ - $ - $ - $ - $
Total $ - - $ - $ - $ - $ - $ - $ - $
Total Capital Project
$ - - $ - $ 88,000 $ 12,000 $ - $ - $ 100,000 $
Climate Change Mitigation, Adaptation & Resilience Which strategic objectives apply Downtown
X Housing to this project? (check boxes to left)
Mobility, Traffic & Transportation Infrastructure
Northeast Area Specific Plan Insert photo here
Recreation Services
Capitalized Project X Non-Capitalized Project
C2613 - Carl's Jr. Demolition and Fencing for Future Affordable Housing - NEW Description
Staff is requesting funds for the demolition and fencing of the Carl's Jr. Building. In 2023, the Housing Authority purchased the property at El Camino Real and Eaton Ave. for future development of 100% affordable housing project in the 90 unit range. The property included three tenants, including Carl's Jr. Their lease ended in March 2026 and there are no plans to replace with another tenant since a short-term lease for that site is not economically viable. Additionally, a vacant site is more marketable once the City begins the RFP/RFQ process. Once additional funds from commercial linkage fees are collected from upcoming developments and deposited into the Housing In-Lieu Fund 29, the RFP/RFQ process for this site will begin.

Justification
The demolition is needed in order to prepare the site for a future RFP/RFQ process to invite developers to submit proposals for the anticipated affordable housing development. The site will also need to be fenced in order to maintain cleanliness and security post-demolition. The site is adjacent to the creek so the fencing will minimize the risk of illegal dumping and prevent unauthorized access to the site. The cost includes the estimate for a demolition (one-time cost) and fencing for two years (monthly cost).

Category:

Location:

Strategic Plan:

Priorities:

Priority Rating:

Department:

Fund Number:

Project Manager:

Current Strategic Plan Objective
Future Impact on Operating Budget
Project cost already includes 2 years of monthly fence rental fees. There is no anticipated maintenance cost post demolition.

Duration
Status
Programmed Funding
FY2026-27 to FY2027-28
New project request.

11.b
June 22, 2026 Packet Pg. 911

CITY OF SAN CARLOS
FISCAL YEAR 2025-30 CAPITAL IMPROVEMENT PROGRAM (PROPOSED UPDATE)

UNFUNDED PROJECT LIST
Fund /
Project Category Project Description Est. Project Total Wastewater Fund 006
Ongoing Climate Change Mitigation, Adaptation & Resilience Annual Sewer System Rehabilitation Program 48,500,000 New Climate Change Mitigation, Adaptation & Resilience Sewer System Repairs within 500 Feet of Creeks and Tributaries 11,000,000.00 New Climate Change Mitigation, Adaptation & Resilience Sewer System Force Main Assessement 1,000,000.00 New Climate Change Mitigation, Adaptation & Resilience Sewer System Maintenace Hole Assessement 500,000.00 Total Unfunded Wastewater Fund 61,000,000
Gas Tax Fund 0016
C9416 Mobility, Traffic & Transportation Infrastructure Annual Street Resurfacing 7,000,000 C9465 Mobility, Traffic & Transportation Infrastructure Annual Sidewalk Repair/Reconstruction III 16,200,000 Total Unfunded Gas Tax Fund 23,200,000
General Fund Capital Projects Fund 0025
C9302 Other Solar Electric Panels of City Facilities 750,000 C9309 Climate Change Mitigation, Adaptation & Resilience Citywide Drainage Improvements 47,500,000 C9315 Other San Carlos Ave Park Renovation 2,000,000
C9459 Mobility, Traffic & Transportation Infrastructure Holly St/US 101 Interchange Modification and Pedestrial Crossing 7,000,000 C9459 Mobility, Traffic & Transportation Infrastructure Holly St/US 101 Interchange Modification and Pedestrial Crossing - C9459 Mobility, Traffic & Transportation Infrastructure Holly St/US 101 Interchange Modification and Pedestrial Crossing - C9461 Mobility, Traffic & Transportation Infrastructure Brittan Ave Widening at Industrial Road 4,150,000 C9461 Mobility, Traffic & Transportation Infrastructure Brittan Ave Widening at Industrial Road 500,000 C9803 Other Police Gym Expansion Phase II 200,000
C9828 Climate Change Mitigation, Adaptation & Resilience Storm Channel Sediment Removal (additional request) 3,850,000 C9838 Mobility, Traffic & Transportation Infrastructure Four Corners Traffic Improvements (construction) 1,750,000 C1746 Climate Change Mitigation, Adaptation & Resilience ECR/Rail Corridor Tree Planting and Irrigation Installation 800,000 C1753 Mobility, Traffic & Transportation Infrastructure Wheeler Plaza Garage Parking Management System Expansion & Extension 160,000 C1803 Mobility, Traffic & Transportation Infrastructure Brittan Ave & Alameda de las Pulgas Widening 1,650,000 C2209 Other East Side Innovation District Zoning Code: Stream Development and Maintenance Overlay District Amendment 30,000 C2310 Other Filing Cabinet System 200,000
C2414 Other 2nd Floor City Hall Remodel 1,750,000
New Climate Change Mitigation, Adaptation & Resilience Storm Drain Master Plan Phase 1A 5,800,000 New Climate Change Mitigation, Adaptation & Resilience Storm Drain Master Plan Phases 1B and 1C 12,700,000 New Climate Change Mitigation, Adaptation & Resilience Update 2017 Storm Drain Master Plan 300,000 New Climate Change Mitigation, Adaptation & Resilience Storm Drain Master Plan Phase 2 14,100,000 New Climate Change Mitigation, Adaptation & Resilience Storm Drain Master Plan Phases 3 and 4 11,600,000 New Climate Change Mitigation, Adaptation & Resilience Underground Detention Basin, E.R. Burton Park 33,500,000 New Climate Change Mitigation, Adaptation & Resilience Underground Detention Basin, El Camino Real 14,740,000 New Climate Change Mitigation, Adaptation & Resilience Underground Detention Basin, Big Canyon Park 1,150,000 New Climate Change Mitigation, Adaptation & Resilience Bioretention Planter, Brittan Avenue and Alameda de las Pulgas 870,000.00 New Climate Change Mitigation, Adaptation & Resilience Pervious Pavement, City of San Carlos Corporation Yard (Porous Asphalt) 1,560,000 New Climate Change Mitigation, Adaptation & Resilience Pervious Pavement, City of San Carlos Corporation Yard (Pervious Concrete) 2,230,000 New Downtown Downtown Plan Implementation 131,480,000
New Mobility, Traffic & Transportation Infrastructure Museum of San Carlos History ADA Compliance Project 250,000 New Mobility, Traffic & Transportation Infrastructure Emergency Notification Alarm System 40,000 New Mobility, Traffic & Transportation Infrastructure Planning and Installation of New EV Stations in Public Parking Spaces 480,000 New Mobility, Traffic & Transportation Infrastructure 4 Corners - ADLP - Belmont Project (Design) 250,000 New Mobility, Traffic & Transportation Infrastructure Alameda De Las Pulgas/San Carlos Ave to Edgewood Road 163,000 New Mobility, Traffic & Transportation Infrastructure Update Bike and Ped Masterplan 300,000 New Mobility, Traffic & Transportation Infrastructure Traffic Signal Fiber Project 421,600 New Mobility, Traffic & Transportation Infrastructure Traffic Signal Master Plan Implementation 295,700 New Mobility, Traffic & Transportation Infrastructure SRTS Improvements near Heather & Brittan Acres 47,541 New Mobility, Traffic & Transportation Infrastructure Roundabout at Crestview and Edmonds (phase 2) 1,000,000 New Mobility, Traffic & Transportation Infrastructure San Carlos Ave Traffic Calming 300,000 New Mobility, Traffic & Transportation Infrastructure Alameda De Las Pulgas Corridor Study 1,250,000 New Mobility, Traffic & Transportation Infrastructure 4 Corners - ADLP - Belmont Project (Construction) 1,750,000 New Mobility, Traffic & Transportation Infrastructure Old County Cycle Track 1,600,000 New North Area Specific Plan Land purchase for 2 acre park 39,465,360 New North Area Specific Plan Land purchase for 1 acre park 20,000,000 New Recreation Services Heather Dog Exercise Area Improvements 200,000 New Recreation Services Highlands Park-Picnic Area Enhancements 50,000 New Recreation Services Industrial Arts Plan 1,000,000
New Recreation Services Parks Master Plan Short-term projects 470,000 New Recreation Services Strategic Land Purchase to develop Laureola Park 8,000,000 New Recreation Services Laureola Park complete master plan renovation 6,000,000 New Recreation Services Pool 7,000,000
New Recreation Services Design/Construction of a Community Center (20,000 sq ft) 25,000,000 New Recreation Services Reconstruct Kiwanis Building at Burton Park 3,000,000 New Other Update ADA Transition Plan 300,000
New Other Information Technology Master Plan 100,000
New Other Long term financial plan 300,000
New Other Museum of San Carlos History ADA Restroom Update 100,000 New Other Civic Center Space Planning Study 500,000
New Other Update 2012 Facilities Masterplan 300,000
New Other Concrete around City Hall 320,000
New Other Lighting outside City Hall 60,000
New Other Youth Center HVAC Replacement 800,000
New Other Civic Center Cameras 100,000
New Other Shoreway Drainage Improvements near Recology 250,000 Total Unfunded General Fund Capital Projects 423,783,201 Parks-in-Lieu Fund 0027
C1732 Recreation Services Laureola Park Improvements 600,000 New Recreation Services North Crestview Park Design & Construction 10,000,000 Total Unfunded General Fund Capital Projects 10,600,000 Total Unfunded list 518,583,201

11.b
June 22, 2026 Packet Pg. 912

CITY COUNCIL

STAFF REPORT
MEETING DATE: June 22, 2026
ITEM TITLE: Consideration of Adopting a Resolution Electing the Population and Price Adjustment Factors and Establishing the Fiscal Year (FY) 2026- 27 Appropriations Limit of the City of San Carlos, Pursuant to California Constitution Article XIIIB and Section 7900 Et Seq. of the California Government Code.

RECOMMENDATION:

Staff recommend that the City Council adopt a Resolution electing the Population and Price Adjustment Factors and establishing the FY 2026-27 Appropriations Limit of the City of San Carlos, pursuant to California Constitution Article XIIIB and Section 7900 et seq. of the California Government Code.

FISCAL IMPLICATIONS:

There are no fiscal implications, and no additional funding is needed. The City of San Carlos (“City”) is below the calculated appropriations limit.

BACKGROUND:

In 1980, California voters adopted Article XIIIB of the California State Constitution, commonly referred to as the Gann Initiative or Gann Appropriations Limit, placing limits on the amount of tax proceeds that state and local agencies can appropriate each year. The City’s limit is adjusted each year for inflation, population, and other factors.

On June 5, 1990, Proposition 111 was voted into California law. Among other provisions, Proposition 111 provided for changes in the calculation of the Gann Appropriations Limit. The annual adjustments to the spending limit were liberalized by Proposition 111 to be more closely linked to the rate of economic growth in personal income. Additionally, cities can choose to use the rate of change in population either within the city or county, whichever is higher. The City used elements of these adjustment factors in calculating this year’s Gann Appropriations Limit. The Gann calculation is reviewed annually by the City’s external audit firm as part of the annual audit process.

ANALYSIS:

Section 7910 of the State Government Code requires a governing body to annually adopt by resolution, an Appropriations (Gann) Limit for the upcoming fiscal year.

The indexes used in calculating the appropriation limit for FY 2026-27 are the percentage change in the California Per Capita Personal Income (4.95%) and San Mateo County’s population growth

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(-0.0003%), totaling a combined growth rate of 4.92%. The resulting appropriation limit for FY 2026-27 is $129,677,632. Appropriations are subject to the limit total $85,341,054, or 65.81%, of the appropriation limit. The percentage has increased from the prior year due to a combination of factors including the delay of projected impact fees from development and the increase in total appropriations based on the timing of infrastructure improvements. Although the appropriations subject to the limit are higher than the year before, the City remains substantially below the maximum allowable appropriation limit and in compliance with state law.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt the Resolution electing the Population and Price Adjustment Factors and establishing the FY 2026-27 Appropriations Limit of the City of San Carlos, pursuant to California Constitution Article XIIIB and Section 7900 Et Seq. of the California Government Code; 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:
_______________________________
Kathy Kleinbaum, City Manager
ATTACHMENT(S):

1. Resolution

2. GANN Appropriation FY 2026-27

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June 22, 2026 Packet Pg. 914
RESOLUTION NO. 2026 – ____

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

ELECTING THE POPULATION AND PRICE ADJUSTMENT FACTORS AND ESTABLISHING THE Fiscal Year (FY) 2026-27 APPROPRIATIONS LIMIT OF THE

CITY OF SAN CARLOS, PURSUANT TO CALIFORNIA CONSTITUTION ARTICLE XIIIB AND SECTION 7900 ET SEQ. OF THE CALIFORNIA GOVERNMENT CODE.

WHEREAS, pursuant to Article XIIIB of the California Constitution, and Section 7900 et seq. of the California Government Code, the City of San Carlos is responsible for determination of the appropriations limit for the 2026-27 fiscal year; and WHEREAS, pursuant to amendments to Article XIIIB enacted in 1990, the City Council is required to elect the population and price adjustment factors used to calculate the appropriations limit; and
WHEREAS, the City Council has considered the matter at a regularly scheduled Council meeting.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Carlos hereby approves:

SECTION 1. For the calculation of the appropriations limit for Fiscal Year 2026-27, the City Council elects the following annual adjustment factors: (1) the percentage change in the California per capita income; and (2) the population adjustment factor of San Mateo County’s population growth.

SECTION 2. It is hereby determined that the appropriations limit for FY 2026-27 for the City of San Carlos is one hundred and twenty-nine million six hundred seventy-seven thousand six hundred thirty-two dollars ($129,677,632). Appropriations subject to the limit, total $85,341,054, or 65.81%, of the Appropriations Limit. Therefore, the City is substantially below the maximum allowable appropriation limit and in compliance with the state law. * * * * *
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 22nd day of June 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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Price
Factor:

Population
Factor:

Fiscal Year Price
Adjustment
Population
Adjustment
Total
Adjustment
Appropriations
Limit
% of City
Appropriations
Subject to the
GANN Limit
2018 1.0369 x 1.0056 = 1.0427 $84,397,528 30.53%
2019 1.0367 x 1.0073 = 1.0443 $88,133,630 33.96%
2020 1.0385 x 1.0028 = 1.0414 $91,783,048 41.13%
2021 1.0373 x 1.0166 = 1.0545 $96,786,987 42.05%
2022 1.0573 x 0.9925 = 1.0494 $101,565,385 55.38%
2023 1.0755 x 0.9908 = 1.0656 $108,228,622 40.52%
2024 1.0444 x 0.9957 = 1.0399 $112,547,927 47.03%
2025 1.0362 x 0.9950 = 1.0310 $116,039,051 47.20%
2026 1.0644 x 1.0007 = 1.0651 $123,598,425 36.01%
2027 1.0495 x 0.9997 = 1.0492 $129,677,632 65.81%
(1)

TEN YEAR HISTORY OF PRICE AND POPULATION FACTORS &
TAX APPROPRIATIONS LIMIT (1)
FOR FISCAL YEARS 2018 to 2027

GANN ANNUAL APPROPRIATION LIMIT
FISCAL YEAR 2026-27
Appropriations Limitation, imposed by Propositions 4 and 111, establishes a formula to restrict the amount of revenues that can be appropriated in any fiscal year. The Limit is based on actual appropriations for base fiscal year 1978-79 and is increased annually using the growth in population and a price adjustment index, as well as commercial property development within the City during the year.

Revenues that are restricted to the limitation are those which are referred to as “proceeds of taxes,” such as sales tax, property tax and business license tax.

The City must adopt an appropriation limit for each fiscal year. Beginning with the fiscal year 1990-1991, the law provides the local agency an option to calculate the adjustment factors by the following:

The percentage change in the California Per Capita Income Either the City’s own population growth or the population growth of the entire County.

In 1980, the State Legislature added Division 9 to Title I of the Government Code to implement Article XIIIB. This legislation required the governing body of each local jurisdiction in California to establish a tax appropriations limit on or before June 30 of each year for the following fiscal year, pursuant to which the City of San Carlos has been establishing this limit since 1981.

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June 22, 2026 Packet Pg. 916
Step 1 Total all appropriations (2026-27 operating and capital from general and special funds) 149,482,404 $
Step 2 Deduct:

1. Non-Tax Proceeds (64,141,350) $

2. Debt Service Payments - $
Add:

1. Excess user fees which exceed actual costs - $
Step 3 Equals appropriations subject to limit (Step 1 - Step 2) 85,341,054 $ Step 4 Compare against 2026-27 Appropriations Limit (from below) 129,677,632 $ Dollar Amount Under Limit (Step 4 - Step 3) 44,336,578 $ Percentage of Limit (Step 3/Step 4) 65.81%
Step 5 Fiscal Year 2025-26 Appropriation Limit 123,598,425 $ Fiscal year 2026-27 Growth Factor based on California Per Capita Step 6 Income 1.0495 --- and the County Population Change 0.9997 104.92% (1.0495*0.9997)
Step 7 FY 2026-27 Appropriations Limit (Step 5 x Step 6) 129,677,632 $ Step 8 FY 2026-27 Appropriations Subject to Limit (from above) 85,341,054 $ Step 9 Dollar Amount Under Limit (Step 7 - Step 8) 44,336,578 $ Step 10 Percentage of Limit (Step 8/Step 7) 65.81%

GANN APPROPRIATIONS LIMIT CALCULATIONS
FISCAL YEAR 2026-2027

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June 22, 2026 Packet Pg. 917
General Fund $70,187,120
Capital Improvement 46,305,919
Other Programs 4,295,165
Enterprise Sewer System 28,694,200
$149,482,404
Licenses & Permits $3,309,900
Business Registration 1,862,800
Fines & Forfeitures 198,600
Use of Money & Property 4,842,000
From Other Agencies 5,249,400
Charges for Services 6,878,600
Other Revenue 4,780,150
Sewer Operation & Maint. 25,003,100
NPDES 649,100
Capital Improvement Fund 25 10,055,100
Child Care Fund 26 0
In-Lieu Park Fund 27 123,100
Housing In-Lieu Fund 29 23,000
Post-Employment Benefits Fund 35 1,166,500
$64,141,350
Debt Services $0
$64,141,350
Non-Tax Proceeds and Debt Services

CHART OF FUNDS SUBJECT TO APPROPRIATION
2026-27 Appropriation from Operating, Capital Improvement and Other

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CITY COUNCIL

STAFF REPORT
MEETING DATE: June 22, 2026
ITEM TITLE: Consideration of Adopting a Resolution Ordering the Submission to the Qualified Electors of the City of San Carlos a Measure Relating to a Local Transaction and Use Tax at the General Municipal Election to be Held on Tuesday, November 3, 2026, as Called by Resolution 2026- 062.

RECOMMENDATION:

Staff recommend that the City Council review and consider the attached Transactions and Use Tax Ordinance and Resolution placing the Ordinance on the ballot for the November 3, 2026 election. If the Council decides to place the Ordinance on the ballot, staff request that the Council provide direction on submittal of a ballot argument in favor of the measure.

FISCAL IMPLICATIONS:

If the City Council moves forward with placing the Transactions and Use Tax Ordinance on the November 3, 2026 ballot, the proposed sales tax rate increase of a half-cent (0.5%) will generate approximately $6,000,000 in additional annual revenue for 14 years.

The County of San Mateo Elections Division ("County") has provided an estimated cost of $100,000 to $120,000 for election services related to the election of three City Council seats for the November 2026 election. If the City were to place a measure on the November ballot, the total estimated cost of election services would increase to between $110,000 and $132,000. Actual costs are dependent on several factors, including the number of registered voters and the number of jurisdictions participating in the election.

The election estimate has been included within the fiscal year (FY) 2026-2027 Adopted Budget.

BACKGROUND:

The City responsibly manages public funds and maintains healthy reserves. San Carlos’ longterm fiscal stability has been the result of deliberate financial policies including conservative revenue forecasting and budgeting, disciplined cost control, paying for facilities and infrastructure costs on a cash basis, and maintaining lean staffing. In addition to the City’s structural revenue sources, such as sales taxes, property taxes, and transient occupancy taxes, staff continually seek to secure funding from other sources to offset project costs. For example, since 2023, the City has secured more than $120 million in grant funding and leveraged development partnerships to negotiate $63 million in community benefits over a six-year period, beginning in 2028.

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With current funding sources, the City maintains 87 miles of streets, 105 miles of sewer pipes, 172.5 acres spanning 17 parks and open spaces, 1,754 storm drains, and responds to 14,726 public safety calls per year. The current Adopted FY 2025-2027 Budget includes a $164 million dollar investment in the City’s current five-year capital improvement program through 2030. The largest portions of this funding are dedicated to sewage improvements and replacements ($60 million); street improvements ($44 million); traffic and transit improvements ($18 million); storm drain improvements ($5 million), safe routes to school improvements ($7.4 million).

Even with significant capital investments, the City has over $200 million in additional unfunded capital projects identified in over the next few years. This unfunded need is too large to handle in our normal operating budget. Furthermore, the longer we wait to fix our streets, infrastructure, and facilities, the more expensive it will become. Rising costs for goods, services, and maintenance are placing increasing pressure on the City’s budget. Without a new local funding source, sustaining current service levels could be challenging as reserves are meant for emergencies and one-time needs, not ongoing services, and continued reliance on them could eventually result in future service reductions.

To address the need for an additional revenue source and consider possible options, the City Council approved a professional services agreement with Team CivX and True North Research, on June 9, 2025. In September 2025, TeamCivX and True North Research conducted a voter survey to collect the community’s input about issues that affect the quality of life in our community, including funding for City facilities and services.

The results of the survey were shared with the City Council at its November 10, 2025 regular meeting. Mostly notably:
• 65% of respondents indicated they would support a half-cent general sales tax measure to fund City services
• In terms of funding priorities, the survey results indicated support for the following uses:
o Keeping existing parks and community facilities safe, clean, and well-maintained, and adding future parks and facilities (93% in favor)
o Fixing potholes and maintaining City streets (90% in favor) o Upgrading fire protection, police, and paramedic services to continue 911 emergency response (88% in favor)
o Repairing aging infrastructure including storm drains, sewers, sidewalks, curbs, and public facilities (86% in favor)
o Making downtown San Carlos pedestrian friendly with redesigned streets, wider sidewalks, and connected public plazas (74% in favor)
Based on the City Council’s direction at the November 10, 2025 meeting, staff developed an informational communications plan to raise awareness of the City’s infrastructure and funding needs, while also introducing the possibility of a proposed measure and providing the community with opportunities for input. Between November 2025 and June 2026, City staff distributed information about a potential sales tax measure including:
• Two printed mailers to all homes and businesses in the city • A dedicated webpage with a fact sheet and FAQs at www.cityofsancarlos.org/localfunding • Two E-News emails
• Two posts on social media
• Mostly in-person outreach meetings, presentations, and Q&As with 17 community groups

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A complete list of outreach conducted by staff is included in Attachment 2.

From May 26, 2026 to June 1, 2026, True North Research conducted a tracking poll to determine if a local sales tax measure for the November 2026 ballot was still feasible based on the current political and economic climate. Based on the survey results of the final ballot test, 63% of respondents indicated they would support a half-cent general sales tax measure to fund City services. This represents a 2% drop in support from the November survey, but is still 13% above the threshold required for passage. Similarly, support for the five funding priorities listed above dropped by a couple of percentage points as well. True North Research will prepare and present a complete summary of results and findings from the tracking poll at the June 22, 2026 City Council meeting.

Accordingly, staff have prepared the necessary Resolution to place a Transactions and Use Tax Ordinance on the November 3, 2026 ballot for the Council’s consideration. The Transactions and Use Tax Ordinance, if placed on the ballot and approved by a majority vote of the electorate, would add a transactions and use (sales) tax at the rate of one-half percent (0.5%) on the sale of tangible personal property and the storage, use, or other consumption of such property. Staff estimate that such a tax would generate approximately $6,000,000 in additional sales tax revenue to the City annually for 14 years.

ANALYSIS:

Attached to this staff report is a Resolution placing the recommended Transactions and Use Tax Ordinance on the November 3, 2026 ballot (Attachment 1); attached to the resolution as Exhibit A is a draft of the actual Transactions and Use Tax Ordinance that would be presented to the voters for their consideration. If enacted by the voters, the Ordinance would be codified as Chapter

3.18 of Title 3 of the City’s Municipal Code. Further, the tax would become operative as of April 1, 2027, and would be collected by the California Department of Tax and Fee Administration, as with all sales taxes.

Currently, the sales tax rate within the City and the County of San Mateo is 9.375%, comprised of the State of California Bradley-Burns Uniform Local Sales and Use Tax Law of 7.25%, plus an additional 2.125% enacted by the County of San Mateo pursuant to various sales tax override provisions set forth in the Revenue and Taxation Code. The City receives only a small portion of this revenue, approximately $0.11 for every dollar of sales tax collected. Revenue and Taxation Code Section 7251 et seq., known as the Transactions and Use Tax Law, authorizes up to an additional 2% in the tax rate in the County, of which the County of San Mateo has previously imposed 1.5% in prior election years, leaving 0.5% capacity available to cities.

In the fall of 2025 Governor Newsom signed Senate Bill (SB) 63 into law which authorizes the creation of a new Public Transit Revenue Measure District (“District”), which is governed by the same board as the Metropolitan Transportation Commission (MTC). SB 63 also allows for the new District to place a transaction and use tax on the November ballot to be considered by voters in Alameda, Contra Costa, San Francisco, San Mateo, and Santa Clara counties. SB 63 provides, specifically in Government Code section 67730(d), that if passed, the regional transportation tax is excluded from the 2% limit. Therefore, if both measures pass, they will both be implemented.

Accordingly, pursuant to the authority of the Transactions and Use Tax Law, the City has the legal authority to present to the voters the proposed Transactions and Use Tax Ordinance imposing an additional 0.5% in the sales tax rate, which if enacted, would increase the overall sales tax rate in the City to 9.875%. Other cities in San Mateo County that have already imposed this additional

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0.5% sales tax include Belmont, Brisbane, Colma, Daly City, East Palo Alto, Half Moon Bay, Pacifica, Redwood City, San Bruno and South San Francisco. The cities of Burlingame and San Mateo have enacted a 0.25% increase for an overall rate of 9.625%.

Because this measure does not legally restrict the use of tax revenue to any specific purposes, it is classified as a “general tax,” and, if approved by a majority of those voters casting a ballot at the November 3, 2026 election, the tax proceeds may be used for any unrestricted general revenue purposes including, but not limited to:
• Keeping existing parks and community facilities safe, clean, and well-maintained, and adding future parks and facilities
• Fixing potholes and maintaining City streets
• Upgrading fire protection, police, and paramedic services to continue rapid 911 emergency response
• Repairing aging infrastructure including storm drains, sewers, sidewalks, curbs, and public facilities
• Making downtown San Carlos pedestrian friendly with redesigned streets, wider sidewalks, and connected public plaza
The attached Resolution accomplishes the following actions:
• It places the Transactions and Use Tax Ordinance imposing an additional 0.5% in the sales tax rate on the ballot for the November 3, 2026 election and identifies the ballot question to be presented to the voters.
• It provides the Council with options related to the filing of a ballot argument in favor of the Ordinance. This is discussed further below. All primary arguments, either in favor or against the Transactions and Use Tax Ordinance, may not exceed 300 words and must be submitted to the City Clerk by 5:00 p.m. Tuesday, August 11, 2026. • Pursuant to Elections Code Section 9287, if more than one argument is timely presented to the City Clerk, she is required to provide priority to the argument presented by the City Council for printing and distribution to the voters in the ballot pamphlet. • It directs the City Clerk to forward the Transactions and Use Tax Ordinance to the City Attorney to prepare an impartial analysis. The City Attorney’s impartial analysis may not exceed 500 words and must be submitted to the City Clerk by 5:00 p.m. Tuesday, August 18, 2026.
• Next, it authorizes the filing of rebuttal argument which is completely discretionary; if authorized, rebuttal arguments may not exceed 250 words and must be submitted to the City Clerk by 5:00 p.m. Tuesday, August 18, 2026.
• If the Council authorizes the filing of rebuttal arguments, then the Council may also authorize the release of its rebuttal argument to third parties; thus, if the Council files an argument in favor and someone files an argument against, then the Council has the right to file an argument rebutting the argument against and can allow some third party to author the rebuttal argument instead of the City Council. Of course, the right to file a rebuttal argument that is printed and distributed to the voters in the ballot pamphlet would belong to the author of the argument in favor that is to be printed in the ballot pamphlet.

Placing Measure on the Ballot; Ballot Question
As noted, the Resolution places before the electorate of the City of San Carlos the question of whether to authorize the Transactions and Use Tax Ordinance. Further, the Resolution authorizes the question to be presented to the voters as follows:

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“To provide funding for San Carlos city services, such as keeping local streets, sidewalks, storm drains, parks, and community facilities safe, clean, and well-maintained; fixing streets and potholes; relieving traffic congestion; repairing aging infrastructure; and supporting fire protection, paramedic, crime prevention, and 911 emergency response; shall City of San Carlos’ ordinance establishing a one-half cent sales tax be adopted, providing $6,000,000 annually for general government use for 14 years, with independent audits and all funds locally-controlled?” Recognize that there are several rules that govern the form of the question. First, the question may not contain more than 75 words, and there are various rules that govern the counting of words. As an example, proper nouns are considered as one word; thus, “City of San Carlos” counts as one word, not four. Also, any number consisting of a digit or digits shall be considered one word; thus, the phrase “$6,000,000” counts as one word, but if it were to be spelled out as “six million dollars” then that would be counted as three words. The question above includes 75 words.

Additionally, the provisions of the Elections Code Section 13119(a) require the form of the question to provide “[s]hall the ordinance (stating the nature thereof) be adopted?”. Further, Section 13119 (b) provides that if the measure involves the imposition or increase of a tax, the question shall include the amount of money to be raised annually and the rate and duration of the tax to be levied. The question set forth above complies with each of these rules.

Should the County identify concerns with the ballot question, the proposed Resolution authorizes the City Manager and City Attorney to make minor, non-substantive revisions to the ballot question as necessary to facilitate administration of the election and compliance with applicable law, provided that such revisions do not materially change the purpose or substance of the ballot question.

Request to Consolidate Election on Measure with Statewide General Election In order to have San Mateo County conduct the election on the proposed Transactions and Use Tax Ordinance, the Resolution requests the Board of Supervisors to allow for the consolidation of the election with the statewide general election to be held on November 3, 2026, and obligates the City to reimburse the County of San Mateo for the provision of these election services.

Author Ballot Argument
For matters placed on the ballot by the City Council Elections Code Section 9282(b) provides that the City Council, or a member or members of the City Council authorized by the Council, or an individual voter who is eligible to vote on the measure, or bona fide association of citizens, or a combination of voters and associations, may file a written argument for or against any City measure.

If more than one argument for or against the measure is received, the City Clerk, acting as the City’s Election Official, selects the argument to be printed with the ballot materials with the following priority:
(1) The City Council, or member or members of the City Council authorized by the Council (2) Bona fide associations of citizens
(3) Individual voters who are eligible to vote on the measure

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If the Council as a body would like to submit an argument in favor of the measure, the Council would need to approve the argument for submittal at a regular or special Council meeting. The next regularly scheduled Council meeting is on August 10, which is one day before the deadline for submittal of the argument to the City Clerk. The Council could also call a special meeting if desired.

Alternatively, the Council can take action to appoint one or two members of the Council to draft and submit an argument in favor of the measure.

If the Council decides not to submit an argument as a body or appoint one or two Councilmembers to submit an argument, priority would be given to an argument submitted by a bona fide association of citizens and then to individual voters.

Staff is seeking direction from the Council on the submittal of a ballot argument in favor of the measure if the Council decides to adopt the resolution. Section 13 of the draft Resolution has highlighted language for the Council to consider.

Note that the Resolution establishes 5:00 p.m., Tuesday, August 11, 2026, as the deadline to submit ballot arguments, either in favor or against the proposed Transactions and Use Tax Ordinance to the City Clerk, which argument may not exceed 300 words.

City Attorney Impartial Analysis
The Resolution also directs the City Clerk to transmit the proposed Transactions and Use Tax Ordinance to the City Attorney so that an impartial analysis can be prepared pursuant to Elections Code Section 9280 showing the effect of the measure on existing law and the operation of the measure. The City Attorney Impartial Analysis may not exceed 500 words and must be submitted to the City Clerk by 5:00 p.m., Tuesday, August 18, 2026.

Authorizing Rebuttal Argument - Discretionary
The Resolution authorizes the filing of rebuttal argument which is completely discretionary. Thus, if the Council files an argument in favor and someone files an argument against, then the Council has the right to file an argument rebutting the argument against. Likewise, parties opposing the measure who file an argument against the measure will have the ability to file an argument to rebut the City’s argument in favor of the measure. If the Council does not want to provide for the filing of rebuttal argument, then it should delete paragraph numbered 12 and edit paragraph numbered 13 of the findings of the Resolution to read as follows: “All previous resolutions providing for the filing of rebuttal arguments for city measures are hereby repealed.” Rebuttal argument, if authorized, must be submitted to the City Clerk by 5:00 p.m., Tuesday, August 18, 2026.

Authorizing Release of Rebuttal Argument – Discretionary If the City Council does authorize the filing of rebuttal argument, then the City Council may further consider and authorize the release of the City Council’s right to file a rebuttal argument to third parties who may then author the rebuttal argument to argument filed in opposition to the proposed Transaction and Use Tax Ordinance. If the City Council authorizes the release of its rebuttal argument, then the members of the City Council will each need to individually identify the person to whom they are releasing their right to prepare, submit and sign the rebuttal argument in writing to the City Clerk. Of course, if the Council does not retain priority to have its argument in favor of the Ordinance printed and distributed in the ballot pamphlet, then any rebuttal argument prepared by the Council would not appear in the ballot pamphlet; the printed argument would be that of

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either the “bona fide association of citizens” or “individual voter” whose argument is selected for printing in the ballot pamphlet.

If the Council does not want to provide for the release of its rebuttal argument then it should remove the paragraph numbered 12 and edit paragraph numbered 13 of the findings of the Resolution to read as follows: “All previous resolutions providing for the filing of rebuttal arguments for city measures are hereby repealed.”
SUMMARY AND CONCLUSION:

Should the City Council desire to move ahead with the proposed Transactions and Use Tax Ordinance, the City Council should adopt the attached Resolution. Pursuant to Revenue and Taxation Code Section 7285.9 and Government Code Section 53724(a) the ordinance proposing the tax has to be approved by a two-thirds vote of all the members of the City Council and a majority vote of the qualified voters of the city voting on the issue on November 3. Staff are available to provide any additional information desired by the mayor or councilmembers.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution ordering the submission to the qualified electors of the City of San Carlos a measure relating to a local transaction and use tax at the General Municipal Election to be held on Tuesday, November 3, 2026; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Nil Blackburn, Assistant City Manager;
Rebecca Mendenhall, Administrative Services Director; and Greg Rubens, City Attorney
Approved for submission by:
__________________________________
Kathy Kleinbaum, City Manager
ATTACHMENT(S):

1. Resolution Placing Transactions and Use Tax Ordinance on the Ballot Exhibit A to Resolution - Transactions and Use Tax Ordinance

2. Community Outreach

3. Public Comments Received through June 17, 2026

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RESOLUTION NO. 2026 – ____

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

ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF SAN

CARLOS A MEASURE RELATING TO A LOCAL TRANSACTION AND USE TAX AT THE GENEARL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026 AS CALLED BY RESOLUTION 2026-062.

WHEREAS, the City of San Carlos ("City") is a local government that prides itself on providing quality services to its residents, businesses and visitors; and WHEREAS, the City responsibly manages public funds and maintains healthy reserves; and
WHEREAS, rising costs for goods, services, and maintenance are placing increasing pressure on the City’s budget; and
WHEREAS, without a new local funding source, sustaining current service levels could be challenging; and
WHEREAS, reserves are meant for emergencies and one-time needs, not ongoing services, and continued reliance on them could eventually result in future service reductions; and WHEREAS, the City works to maintain 87 miles of streets, 105 miles of sewer pipes, 172.5 acres spanning 17 parks and open spaces, 1,754 storm drains, and responds to 14,726 public safety calls per year; and
WHEREAS, the City has identified approximately $200 million in unfunded capital improvement projects over the next few years that are still to be addressed; and WHEREAS, the City regularly invests in street improvements, aging infrastructure, and more; and
WHEREAS, the unfunded need is too large to handle in our normal operating budget but the longer we wait to fix our streets, infrastructure, and facilities, the more expensive it will become; and
WHEREAS, only a small share of the City’s sales tax goes to the City’s General Fund; and
WHEREAS, a General Municipal Election on Tuesday, November 3, 2026 has been called by Resolution 2026-062, adopted on June 8, 2026; and
WHEREAS, Resolution 2026-062 also requests the Board of Supervisors of San Mateo County to permit the county elections official to render specified services to the City relating to the conduct of an election, subject to the City reimbursing the county in full for the services performed upon presentation of a bill to the City, pursuant to Elections Code 10002; and WHEREAS, the City Council has the authority under Elections Code Section 9222, Revenue and Taxation Code Section 7285.9, and Government Code Sections 53723 and 53724

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to place a ballot measure before the voters to establish a local transaction and use tax (sales tax) for general municipal purposes; and
WHEREAS, the City Council also desires to submit to the voters at the election a question whether to establish a local transaction and use tax (sales tax) for general municipal purposes; and
WHEREAS, pursuant to Revenue and Taxation Code Sections 7251.1, the combined rate of all transaction and use taxes imposed by the City and county is capped at 2%, there is remaining capacity within the local transactions and use tax cap of one-half percent (0.5%), and the City is authorized to impose the tax contingent on voter approval; and WHEREAS, the City seeks to adopt a local transactions and use tax rate of one-half percent (0.5%); and
WHEREAS, Article XIII C, Section 2(b) of the California Constitution requires that an election to approve a general tax measure be consolidated with a City Council election and such an election has been declared for November 3, 2026; and WHEREAS, voter approval on November 3, 2026 to impose the sales tax would provide the City with financial certainty regarding the long-term viability of this revenue; and WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections, including bond elections, of any legislative or congressional district, public district, city, county, or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body or bodies or officer or officers calling the elections; and
WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a city for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the city shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot, and acknowledging that the consolidated election will be held and conducted in the manner prescribed in Elections Code Section 10418. Upon such request, the Board of Supervisors may order the consolidation. The resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF SAN CARLOS DOES HEREBY DETERMINE AS FOLLOWS:

1. Pursuant to California Constitution Article XIIIC, Section 2(b), Government Code Sections 53723 and 53724, Revenue and Taxation Code Section 7285.9, and Elections Code Section 9222, the City Council hereby calls for an election at which it shall submit to the qualified voters of the city a measure, that if approved by the majority of voters voting in the election, would adopt and impose a transactions and use (sales) tax of 0.5% until March 31, 2041, unless extended by action of the voters prior to that date. The election shall be held in the city on November 3, 2026.

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2. The City Council hereby approves the Ordinance authorizing the levying of the transactions and use tax for general purposes as set forth in Exhibit A attached hereto and its submittal to the qualified voters of the city during the November 3, 2026 election in accordance with Government Code Sections 53723, 53724(b) and Revenue and Taxation Code Section 7285.9. The Ordinance specifies that (i) the rate of the sales tax shall be one half percent (0.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the city, (ii) the rate of the sales tax shall be one half percent (0.5%) of the sales price of tangible personal property stored, used, or otherwise consumed in the city, (iii) that the tax shall be in effect for fourteen years, that is until March 31, 2041, unless extended by action of the voters prior to that date, and (iv) that upon the Operative Date of the Ordinance, the California Department of Tax and Fee Administration shall collect the tax from retailers that are subject to the tax and remit the funds to the City.

3. Pursuant to Elections Code Sections 10400 and 10403, the City Council hereby orders an election be called and consolidated with any and all elections also called to be held on November 3, 2026 within the same territory. Further, pursuant to Elections Code Section 10002, the City Council hereby requests the Board of Supervisors of the County of San Mateo to consolidate the election regarding the Ordinance with the November 3, 2026 general election and to permit the San Mateo County Elections Department to provide any and all services necessary for conducting an election regarding the Ordinance. The County of San Mateo and its staff are authorized and instructed to procure and furnish any and all official ballots, notices, printed matter and all supplies and equipment and other necessary items in order to properly and lawfully conduct the election; the County of San Mateo is authorized to canvass the returns of the election, which shall be held in all respects as if there were only one election, and only one form of ballot shall be used; and the City Council recognizes that additional cost will be incurred by the County of San Mateo by reason of the consolidation of the election regarding the Ordinance with the Statewide election and agrees to reimburse the County of San Mateo for any costs that are not reimbursed by the State, and the City Council hereby authorizes the City Manager to pay the County of San Mateo for said services in full. The City Council hereby acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code Section 10418

4. The City Council hereby orders the City Clerk and the San Mateo County Elections Department to submit the following question to the electorate at the November 3, 2026 election:

YES
To provide funding for San Carlos city services, such as keeping local streets, sidewalks, storm drains, parks, and community facilities safe, clean, and well-maintained; fixing streets and potholes; relieving traffic congestion; repairing aging infrastructure; and supporting fire protection, paramedic, crime prevention, and 911 emergency response; shall City of San Carlos’ ordinance establishing a one-half cent sales tax be adopted, providing $6,000,000 annually for general government use for 14 years, with independent audits and all funds locally-controlled? NO

5. The City Council authorizes the City Manager and City Attorney to make minor, non-substantive revisions to the ballot question, as deemed necessary by the County Elections Office, to facilitate administration of the election and compliance with applicable law, provided that such revisions do not materially change the purpose or substance of the ballot question.

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6. The City Council hereby orders that the San Mateo County Elections Department print the full text of the Ordinance attached hereto as Exhibit A exactly as filed or indicated on the filed document in the voter information guide for the November 3, 2026 election.

7. The City Council hereby finds and determines that the transactions and use (sales) taxes imposed pursuant to the Ordinance is for general municipal purposes and accordingly the taxes shall be approved upon a majority vote of the qualified voters of the City of San Carlos voting in the election on the Ordinance.

8. Notice of Election. The City Council hereby directs the City Clerk to (i) publish a notice of elections and a synopsis of the measure as required by Elections Code Sections 12101 and 12111; (ii) file certified copies of this resolution, including the Ordinance, with the County of San Mateo and take other necessary actions to ensure the placement of the Ordinance on the November 3, 2026 ballot; and (iii) coordinate with the County of San Mateo and take all necessary actions to oversee and certify the November 3, 2026 election process as required by Elections Code.

9. Primary Arguments. In accordance with California Elections Code Section 9282, primary arguments in favor and against, not exceeding 300 words, shall be filed with the City Clerk no later than 5:00 p.m. on Tuesday, August 11, 2026, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Form of Statement to Be Filed By Author(s) of Argument, which can be obtained from the Office of the City Clerk.

10. Primary Argument Authors. The City Council has [elected to author ballot argument/appointed two members of the City Council to author the ballot argument/decided not to have the Council or members of the Council submit a ballot argument on behalf of the Council] in support of the Ordinance and to permit rebuttal argument, and as authorized by California Elections Code Section 9285.

11. Impartial Analysis. In accordance with California Elections Code Section 9280, the City Council directs the City Clerk to transmit a copy of the Ordinance to the City Attorney, who shall prepare an impartial analysis showing the effect of the Ordinance on the existing law and the operation of the Ordinance; the City Attorney’s impartial analysis may not exceed 500 words and shall be filed with the City Clerk no later than 5:00 p.m. on Tuesday, August 18, 2026.

12. Rebuttal Arguments. California Elections Code Section 9285 authorizes the City Council to adopt provisions for the filing of rebuttal arguments at municipal elections; accordingly, when the City Clerk has selected the argument for and against the Ordinance which will be printed and distributed to the voters, the City Clerk shall send a copy of the argument in favor of the Ordinance to the authors of the argument against, and a copy of the argument against to the authors of the argument in favor of the Ordinance immediately upon receiving the arguments. The authors may prepare and submit rebuttal arguments not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. The rebuttal arguments shall be filed no later than 5:00 p.m. on Tuesday, August 18, 2026, accompanied by the printed names and signatures of the persons submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument, which can be obtained from the Office of the City Clerk.

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Rebuttal arguments shall be printed in the same manner as the direct arguments, and rebuttal argument shall immediately follow the direct argument which it seeks to rebut.

13. Rebuttal Arguments. All previous resolutions providing for the filing of rebuttal arguments for city measures are hereby repealed and the provisions of this resolution providing for the filing of rebuttal arguments regarding the Ordinance shall only apply to the election to be held on November 3, 2026, and shall thereafter be repealed.

14. CEQA. For purposes of the California Environmental Quality Act (Public Resources Code Section 21000, et seq.), a “project” is defined in State CEQA Guidelines Section 15378 (a) as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, r a reasonably foreseeable indirect physical change in the environment”. The City Council hereby finds that the proposed Ordinance will not result in any change in the environment and thus is not a project subject to the requirements of CEQA.

Additionally, the proposed Ordinance involves the creation of a government funding mechanism which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment and thus the City Council finds the proposed Ordinance is not a project subject to the requirements of CEQA pursuant to CEQA Guidelines Section 15378 (b)(4). Further, even if the adoption of this Ordinance was deemed to be a project subject to CEQA, the City Council finds the proposed Ordinance is exempt from CEQA under the common sense exemption set forth in Section 15061(b)(3), which provides that CEQA only applies to projects which have the potential for causing a significant effect on the environment, and thus where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby orders the submission to the qualified electors of the City of San Carlos the measure set forth in paragraph 4 herein relating to a local transaction and use tax at the General Municipal Election to be held on Tuesday, November 3, 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 22nd day of June 2026, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:

AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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___________________________
MAYOR of the City of San Carlos
Exhibit A – Ordinance – Full Text Measure

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ORDINANCE NO. ____

AN INITIATIVE ORDINANCE OF THE CITY OF SAN CARLOS
ADDING CHAPTER 3.18, TRANSACTIONS AND USE TAX, TO TITLE 3, REVENUE AND FINANCE, OF THE CITY OF SAN CARLOS MUNICIPAL CODE.

WHEREAS, the City of San Carlos ("City") is a local government that prides itself on providing quality services to its residents, businesses, and visitors; and WHEREAS, the City responsibly manages public funds and maintains healthy reserves; and
WHEREAS, rising costs for goods, services, and maintenance are placing increasing pressure on the City’s budget; and
WHEREAS, without a new local funding source, sustaining current service levels could be challenging; and
WHEREAS, the transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular actions or purposes, and the specific purposes recited in the ballot measure are non-restricted and non-exclusive examples only. The tax is a general tax and shall be approved if the measure receives at least a simple majority of affirmative votes; and WHEREAS, at its June 22, 2026 meeting, the City Council adopted a Resolution submitting the question to the voters at the November 3, 2026 General Municipal Election relating to a sales tax measure.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF SAN CARLOS DO ORDAIN AS FOLLOWS:

SECTION 1. Findings. The people of the City of San Carlos do hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.

SECTION 2: Effective Date. This Ordinance shall take effect as provided in §9217 of the Elections Code of the State of California.

SECTION 3: CEQA. This Ordinance is exempt from additional environmental review pursuant to California Environmental Quality Act (“CEQA”) Guidelines Section 15061(b)(3); under the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 4: Severability. The City Council hereby declares that it would have passed this Ordinance sentence by sentence, paragraph by paragraph, and section by section, and does hereby declare that any provisions of this Ordinance are severable and if for any reason any

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sentence, paragraph or section of this Ordinance shall be held invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.

SECTION 5. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the People voting thereon on November 3, 2026, by signing where indicated below. * * * *
I hereby certify that the foregoing Ordinance was passed, approved and adopted by the People of the City of San Carlos on the 3rd day of November, 2026.

Date: __________________________ __________________________________ MAYOR of the City of San Carlos
ATTEST:
_______________________________
CITY CLERK of the City of San Carlos
Exhibit A – San Carlos Municipal Code Chapter 3.18 Amendments AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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Exhibit A
Chapter 3.18, Transactions and Use Tax, Title 3, Revenue and Finance, is hereby added to the City of San Carlos Municipal Code to read as follows:

Chapter 3.18. Transactions and Use Tax

3.18.010. Imposition. A Transactions and Use Tax is hereby imposed as a general tax on the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the city and upon the sales price of tangible personal property stored, used, or otherwise consumed in the city as further set forth below.

3.18.020. Operative Date. The transactions and use tax imposed herein shall be operative the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance. Based upon a November 3, 2026 election, the Operative Date for the transactions and use tax imposed hereunder shall be April 1, 2027.

3.18.030. Purpose. This Ordinance is adopted to achieve the following purposes, among others, and directs that the provisions hereof be interpreted in order to accomplish these purposes:

A. To impose a transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, and which authorizes the City to adopt this tax Ordinance, which shall be operative if a majority of the electors voting on the measure approve the imposition of the tax at an election called for that purpose. The tax is a general tax whose proceeds shall be deposited in the City’s general fund and expended for any lawful purpose of the City.

B. To adopt a transaction and use tax that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a transactions and use tax that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a transactions and use tax that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this Ordinance.

3.18.040. Contract with State. Prior to the Operative Date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the

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administration and operation of this transactions and use tax; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

3.18.050. Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated area of the City at the rate of one-half percent (0.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the operative date of this Ordinance for a period of fourteen years, that is until March 31, 2041, unless extended by the voters.

3.18.060. Place of Sale. For the purposes of this Ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges when such charges are subject to the state sales and use tax regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

3.18.070. Use Tax Rate. An excise tax is hereby imposed on the storage, use, or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date of this Ordinance for storage, use or other consumption in the city at the rate of one-half percent (0.5%) of the sales price of the property on and after the operative date of this Ordinance until said tax is repealed by a vote of the electorate of the City, and upon such event shall then be terminated. The sales price shall include delivery charges when such charges are subject to sales or use tax regardless of the place to which delivery is made.

3.18.080. Adoption of Provisions of State Law. Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxations Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxations Code are hereby adopted by reference and made a part of this Ordinance as if fully set forth herein.

3.18.090. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxations Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of City shall be substituted therefore. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California.

2. The result of that substitution would require action to be taken by or against the City or any agency, officer, or employee thereof rather than by or against

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the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to the tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828 of the Revenue and Taxation Code.

B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

3.18.100. Permit Not Required. If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this Section.

3.18.110. Exemptions and Exclusions.

A. There shall be excluded from the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum productions, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with section 21411 of the Public Utilities Code, and undocumented

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vessels registered under Division 3.5 (commencing with section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this Ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this Ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this Ordinance the storage, use, or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax Ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of pubic convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxations Code.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this Ordinance.

4. If the possession of, or the exercise of any right or power over the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this Ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

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6. Except as provided in Subparagraph (7), a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer.

7. “A retailer engaged in business in the city” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the city.

D. Any person subject to use tax under this Ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the person of the property the storage, use or other consumption of which is subject to the use tax.

3.18.120. Amendments. All amendments subsequent to the effective date of this Chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter.

3.18.130. Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the City, or against any officer of the state or the City, to prevent or enjoin the collection under this Ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code of any tax or any amount of tax required to be collected.

3.18.140. Annual Audit and Public Report. Annually the City Council retains an independent auditor to conduct an audit of and provide audited financial statements for all of the City’s financial activities. The auditor shall include an accounting of the revenue received from the tax and expenditures thereof in the audited financial statements. The auditors’ report shall be presented to the Council and made available to the public. Additionally, the City Administrator shall annually prepare and present to the Council and the public a report in conjunction with the audit that reviews the status and performance of the programs and services funded wholly or partially with proceeds of the tax.

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3.18.150. Termination Date. The authority to levy the taxes imposed by this Ordinance shall terminate and be of no further force or effect on March 31, 2041, unless extended by action of the voters prior to that date.

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June 22, 2026 Packet Pg. 939
1 Potential November 2026 Revenue Measure Outreach Period November 2025 – June 2026

1.0 Printed Communications
Mailers Date
Mailer #1 What’s Good in the City of Good
Living
April 2026
Mailer #2 A Local Plan for San Carlos June 2026

2.0 Digital Communications
Website, Social Media, and E-News Date
Launched dedicated webpage:
www.cityofsancarlos.org/localfunding and
created dedicated Potential November 2026
Revenue Measure E-News Group
November 2025
Social Media Post #1 April 2026
Social Media Post #2 June 2026
E-News #1 June 2026
E-News #2 June 2026

3.0 Outreach
Organization Date
2+2 Committee Meeting February 2026
San Carlos Elms March 2026
San Carlos/Redwood City Fire Department March 2026
San Carlos Police Bureau of the San Mateo
County Sheriff’s Office
March 2026
City of San Carlos Staff April 2026
Parks, Recreation, and Culture Commission April 2026
AFSCME Local 829 April 2026
Chamber San Mateo County Governmental
Relations Committee
April 2026
Parks and Recreation Foundation of San
Carlos
April 2026
Friends of the ACC April 2026
Community Foundation of San Carlos May 2026
Planning and Transportation Commission
Meeting
May 2026

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2 Teamsters Local 856 June 2026
Kiwanis Club of San Carlos June 2026
Economic Development Commission (EDAC)
Meeting
June 2026
San Carlos Adult Community Center June 2026
News and Views Meeting at the Adult
Community Center
June 2026

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June 22, 2026 Packet Pg. 941
Public Comments Received Regarding Item
11d – Local Transaction and Use Tax
(through June 17, 2026)

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June 22, 2026 Packet Pg. 943
Dear Divya,
Thank you for your email and for highlighting the issue regarding transit tax in San Carlos. It is important to note that San Carlos does not have a city tax, and the transit tax you mentioned is a county tax.

On behalf of the Council I have forwarded your concerns to our city manager Kathy Kleinbaum and finance director Rebecca Mendenhall fortheir attention and review. Your feedback is valuable to us as we strive to consider all perspectives when making decisions that impact our community.

Feel free to reach out if you have any more questions or comments.

Thank you for your engagement,
Pranita Venkatesh
City of San Carlos
From: Divya Mehra
Sent: Wednesday, May 27, 2026 10:44:29 AM
To: *City Council <[email protected]>; [email protected] <[email protected]>
Subject: Tax increase survey

Hello,
I wanted to let you know that I did not appreciate the "Help Shape the Future of San Carlos" survey I recently received via email.

The survey seemed designed to test how best to spin the tax increase, not to obtain genuine feedback; it was disingenuous at best.

Every year the City of San Carlos and San Mateo County increase taxes:

1. Increased Sales tax recently by 0.125% to fund Caltrain

2. 0.5% increase in Sales tax proposed for BART (which this County barely uses)

3. This further 0.5% increase in Sales Tax ostensibly to fund the cyclist bridge

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June 22, 2026 Packet Pg. 944
This is in addition to new bonds and parcel taxes funding schools.

Do you understand that Sales Taxes are regressive and hurt the lowest-income residents and local small businesses the most?
We do not need such an expensive bike bridge (costing over $100 million); find alternative solutions like bus routes which can handle bikes.

Just as tech companies here conduct mass layoffs to save costs, please start managing your budget instead of treating taxpayers like an ATM.

We are already stretched and exhausted!
Regards,
Divya
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11.d
June 22, 2026 Packet Pg. 945

11.d
June 22, 2026 Packet Pg. 946
Divya Mehra
San Carlos Resident

11.d
June 22, 2026 Packet Pg. 947

11.d
June 22, 2026 Packet Pg. 948
From: Stacy Nieuwoudt < >
Sent: Tuesday, June 9, 2026 10:39:15 AM
To: *City Council <[email protected]>; *City Clerk's Office <[email protected]>; City Manager <[email protected]>
Subject: Opposition to Proposed Half-Cent Sales Tax Increase Dea Membe s o the C ty Counc l I am w t ng o o mal y oppose he p oposed hal -cent sales tax inc ease schedu ed o discuss on on une 22 his measu e in ended to und p o ects such as the au el St eet p omenade and he H ghway 0 Nkdk dX EBanne S a t
External Sender - From: (Stacy Nieuwoudt
)
This message came from outside your organization.

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Nkdk dX EBanne End
Dear Members of the City Council,
I am writing to formally oppose the proposed half-cent sales tax increase scheduled for discussion on June 22.

This measure, intended to fund projects such as the Laurel Street promenade and the Highway 101 bicyclist bridge, represents an inappropriate use of taxpayer funds. It is particularly concerning that the budget for the bicycle bridge has increased from $62 million to over $112 million. For a community of 29,000 residents, these "vanity projects" do not reflect our most pressing needs. I urge the Council to prioritize fundamental infrastructure, including roads, utility systems, and schools.

As a specific example, the 1000 block of Walnut Street was recently scheduled for repaving following sewer line construction; however, only half of the block received a concrete slurry treatment. I encourage you to visit this block to see its poor condition firsthand. Maintaining existing roads is a far more effective use of the budget than pursuing over-budget new projects.

Furthermore, placing an additional financial burden on residents and small businesses during a period of high inflation is ill-advised. A cumulative tax rate potentially exceeding 10% would be detrimental to our community’s financial health.

I urge the Council to seek internal budget solutions for the anticipated $500,000 to $1 million deficit and to halt all proceedings related to this regressive tax increase.

Sincerely,
Stacy and Arthur Nieuwoudt

11.d
June 22, 2026 Packet Pg. 949
From: Judi Bolanos
Date: June 9, 2026 at 10:53:39 PM PDT
To: *City Council <[email protected]>
Subject: Increase in Sales Tax - NO
External Sender - From: (Judi Bolanos
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No new taxes! Our sales tax here will be over 10% shortly and the reason is that City Council loves to propose "pet projects" with no idea about how to pay for them. What about the $6 million restroom for Harrington Park - totally demolishing the existing park for no good reason. A restroom could have been added without destroying everything and for a lot less than $6 million.

Then proposing $45 million and more for a swimming pool! Where is all that money supposed to come from? We don't need a swimming pool, we don't need "meeting rooms" - there are plenty available in existing buildings, and yet the City Council just continues to find ways to spend money we don't have and then taxing the citizens more and more.

Next is a pedestrian bridge of some sort - I saw an article on Next Door - with a budget over $12 million! Please vote NO on this proposal. Not necessary and no one wants more taxes! These are economic hard times (maybe not for members of the Council) and ordinary citizens are having a hard time paying rent/mortgage, buying food, and getting gas for their vehicles so they can go to work.

Respectfully submitted,
Judi Bolanos

11.d
June 22, 2026 Packet Pg. 950

11.d
June 22, 2026 Packet Pg. 951
From: Aleksandra Wilson
Sent: Thursday, June 11, 2026 9:44 AM
To: *City Council <[email protected]>; City Manager <[email protected]>; *City Clerk's Office <[email protected]>
Subject: OPPOSITION: Proposed June 22 General Sales Tax Increase / Infrastructure Priorities Nkdk dX EBanne S a t
External Sender - From: (Aleksandra Wilson
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Good morning,
We don't want any more taxes! Unnecessary bridges are not a priority. Stop wasting money that people entrust you with, and don't ask for more. Many streets still need repaving. Your priorities should not be to cater to a few bicyclists but to repair and maintain our infrastructure for all our citizens within our budget.

Best regards!

11.d
June 22, 2026 Packet Pg. 952

CITY COUNCIL

STAFF REPORT
MEETING DATE: June 22, 2026
ITEM TITLE: Consideration of Adopting a Resolution Adopting a Memorandum of Understanding Between the City of San Carlos and the Local 829 American Federation of State, County and Municipal Employees (AFSCME) for the Period of July 1, 2026 through June 30, 2028.

RECOMMENDATION:

Staff recommend that the City Council adopt a Resolution adopting the Memorandum of Understanding (MOU) with the Local 829 American Federation of State, County, and Municipal Employees (AFSCME) for the period of July 1, 2026 through June 30, 2028.

FISCAL IMPLICATIONS:

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

The additional cost for the provisions below is $215,365 for fiscal year (FY) 2026-27 and $225,465 for FY 2027-28. Certain assumptions were presumed and included as part of the development of the Adopted FY 2026-28 Biennial budget; therefore, there is sufficient funding for this request.

BACKGROUND:

On September 11, 2023, the City Council approved a three-year MOU for the period of July 1, 2023 through June 30, 2026. The City’s negotiating team and AFSCME began presenting proposals to each other in early April and reached agreement on the proposed MOU in mid-June.

In accordance with the City’s Employer Employee Relations Resolution #78-18, Section 5.C, agreements reached as a result of negotiations shall be included in an MOU signed by the City Manager and the duly designated representatives of each recognized employee organization. All signed MOUs must be presented to the City Council for approval in order to be binding.

The AFSCME unit consists of 37 budgeted full-time positions. This group is comprised of professional and clerical positions including: Accounting Technicians, Assistant and Associate Engineers and Planners, Building and Public Works Inspectors, Public Works Assistant Superintendents, Recreation Supervisors and Coordinators, Senior and Systems Analysts, Senior Administrative Clerks, Permit Technician, Cook, Senior Facility Attendant, and the Fire Prevention Officer.

ANALYSIS:

As of April 2026, the San Francisco Bay Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is 3.3%. This is an increase from 1.7% two months prior. One of

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June 22, 2026 Packet Pg. 953
the City’s core values is to support the well-being of the employees while ensuring fiscal responsibility. The proposed increases in salary and benefits result in an overall compensation increase of 3.13% and would not require any additional budget consideration.

City officials met and conferred in good faith with the members of the AFSCME unit and have agreed to the terms identified in the attached MOU. These terms include the following provisions:
• Term: Two-year, July 1, 2026 through June 30, 2028
• Cost of Living Adjustments: Effective July 13, 2026, increase base wage rates for all positions by three percent (3%); and effective July 12, 2027, increase base wage rates for all positions by three percent (3%)
• Overtime Definition: Definition of overtime eligibility was updated to the following to match other units in the organization. For purposes of overtime, “time worked” with the exception of paid or unpaid sick leave, includes time in paid status but not worked (e.g. vacation, holiday, disability, or other leave or compensatory time off are considered “time worked”) • Deferred Compensation Match: Effective July 13, 2026, the City will increase the contribution from two hundred twenty-five dollars ($225) to three hundred dollars ($300) per month
• Medical: Add language to clarify that employees who have coverage through the individual market, whether or not obtained through Covered California, are not eligible for the Alternate Medical Plan
• Safety Shoes: Add the Cook classification with an annual maximum allowance of $200 • Membership Listing: the City will provide the Union with a membership listing report every 90 days instead of 120 days
• CPR Training Certification: the City may designate up to two (2) positions to receive an additional two hundred dollars ($200) annually for holding CPR Trainer certifications ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution adopting the Memorandum of Understanding (MOU) with the Local 829 American Federation of State, County, and Municipal Employees (AFSCME) for the period of July 1, 2026 through June 30, 2028; or

2. Do not adopt a Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Angie Rodriguez, Human Resources Manager; and
Rebecca Mendenhall, Administrative Services Director

11.e
June 22, 2026 Packet Pg. 954
Approved for submission by:
_______________________________
Kathy Kleinbaum, City Manager
ATTACHMENT(S):

1. Resolution
Exhibit A to Resolution - AFSCME MOU

11.e
June 22, 2026 Packet Pg. 955
RESOLUTION NO. 2026 – ____

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

ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN CARLOS AND THE LOCAL 829 AMERCIAN FEDERATION OF STATE, COUNTY, AND

MUNICIPAL EMPLOYEES (AFSCME) FOR THE PERIOD OF
JULY 1, 2026 THROUGH JUNE 30, 2028.

WHEREAS, on September 11, 2023, the City Council adopted Resolution 2023-111 adopting the Memorandum of Understanding (MOU) for AFSCME for the period of July 1, 2023 through June 30, 2026; and
WHEREAS, it is now necessary to adopt a new MOU for the period of July 1, 2026 through June 30, 2028; and
WHEREAS, City officials met and conferred in good faith with the members of the AFSCME unit and have agreed to the terms identified in the attached MOU (Exhibit A); and WHEREAS, there are no fiscal implications, and no additional funding is needed.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby adopts a Memorandum of Understanding between the City of San Carlos and the Local 829 American Federation of State, County and Municipal Employees (attached as Exhibit A.) * * * * *
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 22nd day of June 2026, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibit A - AFSCME MOU
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

11.e
June 22, 2026 Packet Pg. 956

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF SAN CARLOS
AND

AMERICAN FEDERATION OF STATE, COUNTY AND
MUNICIPAL EMPLOYEES, LOCAL 829, AFL-CIO

PROFESSIONAL AND TECHNICAL

EMPLOYEES UNIT
July 1, 2026 through June 30, 2028
Docusign Envelope ID: 5D0C7204-CE2E-8F8E-8178-213E49619581 11.e June 22, 2026 Packet Pg. 957
i

SECTION TITLE PAGE
Section 1 - No Discrimination .......................................... 1 Section 2 - Hours of Work............................................. 1

2.1 Regular Schedules......................................................................................1

2.2 Flexible Hours ...........................................................................................2 Section 3 - Overtime................................................. 2

3.1 Authorization.............................................................................................2

3.2 Definition...................................................................................................2

3.3 Court Time ................................................................................................3

3.4 On-Call/Call-Back .....................................................................................3 Section 4 - Salaries.................................................. 4

4.1 Bi-Weekly Salary Rates.............................................................................4

4.2 Salary Plan.................................................................................................4

4.3 Pay for Temporary or Interim Appointment to a Higher Classification .......5

4.4 Pay on Promotion.......................................................................................5 Section 5 - Holidays ................................................. 6

5.1. Holidays ....................................................................................................6

5.2 Float Time .................................................................................................6

5.3 Saturday and Sunday Holidays...................................................................6

5.4 Observance of Recognized Holidays Based On Work Day Schedule..........6

5.5 Compensation for City Holidays................................................................7 Section 6 - Vacations ................................................ 7

6.1 Entitlement ................................................................................................7

6.2 Vacation Accrual .......................................................................................8

6.3 Vacation Scheduling ..................................................................................8

6.4 Holiday Closures .......................................................................................8

6.5 Vacation Cash Out .....................................................................................8 Section 7 - Sick Leave ............................................... 9

7.1 Accrual ......................................................................................................9

7.2 General ......................................................................................................9

7.3 Usage.........................................................................................................9

7.4 Procedures for Requesting and Approving Sick Leave ...............................9

7.5 Bereavement Leave....................................................................................9

7.6 Jury Duty.................................................................................................10 Section 8 - Layoff and Reemployment .................................... 10 Section 9 - Hospitalization and Medical Care ............................... 11

9.1 Health Plan Contributions for Active Employees .....................................11

9.2 Section 125 Cafeteria Plan Components and City Contribution Increases.11

9.3 Deferred Compensation Incentive ............................................................12

9.4 Domestic Partner Coverage......................................................................13

9.5 Alternate Medical Benefit Program..........................................................13

9.6 Retiree Health Plan Contributions............................................................13

9.7 Longevity Recognition Program...............................................................13

9.8 Dental Plan ..............................................................................................14

9.9 Vision Care Plan......................................................................................14 Docusign Envelope ID: 5D0C7204-CE2E-8F8E-8178-213E49619581 11.e June 22, 2026 Packet Pg. 958
ii

9.10 Long-Term Disability ..............................................................................15

9.11 Short-Term Disability ..............................................................................15 Section 10 - Life Insurance ........................................... 15 Section 11 - Retirement.............................................. 15

11.1 Formula for Employees Hired Before March 16, 2009 .............................15

11.2 Formula for Employees Hired March 16, 2009 through April 22, 2012 ....15

11.3 Formula for Employees Hired After April 22, 2012 through December 31, 2012 or Classic CalPERS Members...........................................................................................15

11.4 Formula for Employees Hired On or After January 1, 2013 (New CalPERS Members) 16

11.5 Formula for Fire Safety Employees Hired Prior to January 1, 2013 or Classic CalPERS Members .......................................................................................................16

11.6 Formula for Fire Safety Employees Hired On or After January 1, 2013 (New CalPERS Members).........................................................................................................16

11.7 Pre-Tax Deduction for Employee Pension Contributions..........................16

11.8 Retirement Notice ....................................................................................16 Section 12 - Safety Shoes and Safety Glasses ............................... 17 Section 13 - Promotions ............................................. 17 Section 14 - Grievances.............................................. 18

14.1 Definition.................................................................................................18

14.2 Procedure.................................................................................................18

14.3 Extension of Time Limits.........................................................................19

14.4 Compensation Complaints .......................................................................19

14.5 Suspension and Discharge Grievances .....................................................20

14.6 No Change in Memorandum ....................................................................20

14.7 No Strike .................................................................................................20 Section 15 - Severability of Provisions.................................... 20 Section 16 - Advance Notice .......................................... 21

16.1 Ordinances Rules and Regulations ...........................................................21

16.2 Contracting Out, Subcontracting, and JPA’s.............................................21

16.3 Personnel Rules Revisions .......................................................................21 Section 17 - Union Membership ........................................ 22

17.1 Union Membership ..................................................................................22

17.2 Dues Deduction .......................................................................................22

17.3 Union Access to New Employee Orientation............................................23

17.4 Membership Listing .................................................................................23

17.5 Forfeiture of Deduction............................................................................23

17.6 Reinstatement ..........................................................................................23

17.7 Hold Harmless.........................................................................................24

17.8 Third Party Notification ...........................................................................24 Section 18 - Miscellaneous ........................................... 24

18.1 Mileage Reimbursement ..........................................................................24

18.2 Tuition Reimbursement............................................................................24

18.3 Disciplinary Action..................................................................................25

18.4 Pregnancy Disability Leave......................................................................25 Docusign Envelope ID: 5D0C7204-CE2E-8F8E-8178-213E49619581 11.e June 22, 2026 Packet Pg. 959
iii

18.5 Military Leave .........................................................................................25

18.6 Leave of Absence Without Pay ................................................................25

18.7 Family Care Leave...................................................................................25

18.8 Commute Incentives ................................................................................25 Section 19 - Integration and Waiver...................................... 26

19.1 Integration ...............................................................................................26

19.2. Waiver Of Further Bargaining On Covered Matters .................................26

19.3. No Adverse Inference ..............................................................................26 Section 20 - Effective Date and Termination ................................ 26 APPENDIX A ................................................... 28 WAGE AND SALARY SCHEDULE.....................................................................................28 Effective July 13, 2026.............................................................................................................28 APPENDIX A ................................................... 29 WAGE AND SALARY SCHEDULE.....................................................................................29 Effective July 12, 2027.............................................................................................................29 Docusign Envelope ID: 5D0C7204-CE2E-8F8E-8178-213E49619581 11.e June 22, 2026 Packet Pg. 960
City of San Carlos - AFSCME 829
2026-2028 Memorandum of Understanding

Page 1 of 30 ends

San Carlos City CouncilJune 22, 2026

San Carlos City Council
June 22, 2026