Agenda packet, regular meeting — San Mateo City Council, June 1, 2026 (part 1 of 2)

CITY OF SAN MATEO
City Council Regular Meeting
June 1, 2026
7:00 PM
City Hall Council Chamber
Entrance is on O’Farrell Street

COUNCIL MEMBERS
Adam Loraine
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash
Robert Newsom Jr.

AGENDA
THIS MEETING CAN BE ATTENDED IN PERSON OR REMOTE BY JOINING ZOOM – SEE CODES BELOW.

PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND REMOTELY .

SEE END OF AGENDA FOR OPTIONS AND INSTRUCTIONS ON HOW TO PARTICIPATE IN THE MEETING.

To join via Zoom – click here:

June 1, 2026
To join via telephone: (408) 638-0968
Webinar ID: 835 1709 7615 No Passcode Required
The City Council meeting will conclude by 11:00 p.m. unless otherwise extended by council vote.

Any unheard items will automatically move forward to the next regular meeting.

CALL TO ORDER
Pledge of Allegiance
Roll Call
Requests and Considerations for Meeting Participation by Teleconference due to Just Cause or Emergency Circumstances

CEREMONIAL

1. Pride Month – Proclamation

2. Older American’s Month – Proclamation

3. San Mateo – Foster City School District Community Access & School Facilities Update – Presentation

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the Council to be routine and will be enacted by one motion without discussion. If discussion is desired, that item may be removed and considered separately.

4. Downtown Cleaning Service — Amendment
Approve Amendment No. 2 to the agreement with Frank & Grossman Landscape Contractors, Inc. to increase the agreement amount by $101,400 for the current fiscal year; execute the second of two optional, one-year extensions to extend the term of the agreement through June 30, 2027; increase the agreement by an additional $500,000 for the 2026-26 fiscal year term, for a revised total agreement amount of $2,101,400; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue amendments within the agreement amount.

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CEQA: This agreement is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)

5. Citywide Street Rehabilitation Package 7B – Agreement Approve an agreement with Nichols Consulting Engineers, Inc. for design services for the Citywide Street Rehabilitation Package 7B project in an amount not to exceed $753,500; establish a contingency reserve of $76,000; and authorize the Public Works Director to execute the agreement in substantially the form presented and approve amendments, including no-cost time extensions, within the contingency amount.

CEQA: This project is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)

6. Annual Sewer Basin Rehabilitation On-Call Design Services — Amendments Approve an amendment to an agreement with CSG Consultants for on-call professional services to increase the agreement amount by $350,000, for a new total agreement amount of $1,850,000, and extend the term of the agreement to February 2029; approve an amendment to the agreement with Wilsey Ham dba WHB Engineers, Inc. for on-call professional services to increase the agreement amount by $1,250,000, for a revised total agreement amount of $2,750,000, and extend the term of the Agreement to February 2029; approve an amendment to the agreement with Freyer & Laureta, Inc. for on-call professional services to extend the agreement term to February 2029; and authorize the Public Works Director to execute the amendments in substantially the form presented and issue project-specific task orders under these agreements.

CEQA: The underlying sewer rehabilitation projects, which the consultants are currently working on are each exempt from CEQA as an “existing facility,” because each project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)

7. Local Streets and Roads Maintenance and Rehabilitation, Project List Fiscal Year 2026-27 — Adoption Adopt a Resolution to submit a list of projects proposed to be funded with the Road Maintenance and Rehabilitation Account, Senate Bill 1 funding, to the California Transportation Commission for Fiscal Year 2026-27.

CEQA: This action is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

8. Community Flood and Storm Protection Fee Increase for Fiscal Year 2026-27 — Adoption Adopt a Resolution to increase the Community Flood and Storm Protection Fee by 3.0 percent to account for the annual Consumer Price Index (CPI) increase.

9. Parks and Recreation Bulk Printing and Mailing Services – Agreement

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Approve a one-year bulk printing and mailing services agreement with FolgerGraphics, Inc. for an amount not to exceed $150,000; authorize

up to two one-year extensions for up to $150,000 each year, for a total not to exceed amount of $450,000 over three years. Authorize the Parks and Recreation Director to execute change orders, extensions, or amendments.

CEQA: This agreement is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b) (5).)

10. Edward Byrne 2025 Justice Assistance Grant Program — Approval Adopt a Resolution to approve the submittal of an application to the United States Department of Justice, Bureau of Justice Assistance, for the Edward Byrne Memorial Justice Assistance Grant Program for the 2025 local solicitation in the amount of $22,261; and if awarded, appropriate funds to the Police Grants Budget Program and authorize the Chief of Police to execute all required documents.

CEQA: This action is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)

11. Recreation Special Event Support Services — Agreement Approve a one-year agreement for special event support services with Perry Thorwaldson, Sole Proprietor of Thor Audio Solutions for an amount not to exceed $108,940; authorize the Parks and Recreation Director to exercise up to two one-year extensions for up to $120,000 each year, for a total not to exceed amount of $348,940 over three years; establish a contingency reserve of $34,894 and authorize the Park and Recreation Director to execute the agreement, extensions and amendments in substantially the form presented.

12. Downtown Landscape Maintenance Services — Agreement Approve an agreement for a total of $415,260 over five years with Brightview Landscaping Services, Inc. for Downtown Landscaping Maintenance Services in the amount of $166,104 per year for two years, with up to three one-year extensions; and authorize the City Manager to execute the agreement substantially the form presented. Authorize a five-percent contingency amount of up to $4,153 per year for a total contingency not to exceed $20,765. Authorize the City Manager to execute all change orders, amendments, and extensions within the contingency amount.

CEQA: This downtown landscaping maintenance services agreement is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)

13. City of San Mateo Opposing State Ballot Initiative No. 1983 25-0006A1 — Adoption Adopt a Resolution opposing proposed statewide Initiative No. 1983 25-0006A1, submitted by the Howard Jarvis Taxpayers Association (HJTA) and qualified for the November 2026 statewide ballot, and authorize the City Manager to communicate the City’s opposition to the California Legislature, the Governor’s Office, the League of California Cities, and other appropriate stakeholders.

CEQA: This item is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

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14. LGBTQIA+ Progress Pride Flag Display at City Hall – Adoption Adopt a Resolution to direct that the LGBTQIA+ Progress Pride Flag be flown in recognition of Pride Month Pursuant to the City's Flag Policy beginning June 2, 2026, and continuing through June 30, 2026.

CEQA: This proposed resolution is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

15. 445 S. B Street (Bespoke) - New Mixed-Use Development — Ordinance Adoption Adopt an Ordinance to approve Development Agreement (DA) associated with the construction a new mixed-use development totaling 239,628 square feet and consisting of one seven-story, 76,072 square-foot affordable housing building and one six-story, 162,926 square-foot office/commercial building located at 445 South B Street (“Project”).

CEQA: In accordance with CEQA, an Initial Study and Mitigated Negative Declaration (IS/MND) were prepared to assess the Project’s environmental impact. The IS/MND concluded that the Project would not have significant effects on the environment with implementation of mitigation measures. The Project’s Mitigation Monitoring and Reporting Program (MMRP) was included in the Project approval resolution. The mitigation measures were also included as conditions of approval. On May 18, 2026, the IS/MND was adopted by the City Council, and the associated staff report contains additional information relating to environmental review of the Project.

16. Boards and Commission Appointment Subcommittee — Appointment Recommendations

1. Appoint Jennifer Kim and Charles Hansen to the Community Relations Commission for a full term from June 10, 2026, through June 10, 2030, and place Lucianne Latu and Wendy McCall on a six-month eligibility list, should a vacancy occur.

2. Appoint Alison Joly to the Library Board for a full term.

3. Appoint James Horsman to the Planning Commission for a full term, and place Seema Patel and Thomas Braham on a six-month eligibility list.

4. Appoint Carol Rael to the Senior Advisory Commission for a full term, place Dale Ritzo and Michael McCutchin on a six-month eligibility list.

5. Appoint Sigalle Michael and Kenyon "Mark" Lee to the Sustainability and Infrastructure Commission for a full term, and place Albert Wetter on a six-month eligibility list.

6. Appoint Peter Wicher to the Park and Recreation Commission for a full term and Mike Etheridge to the Park and Recreation Commission for a partial term from June 10, 2026 through June 10, 2029, and place Tammie Pereira and Ben Pahulu on a six-month eligibility list.

7. Appoint Alison Ho, Linda Druell, Clarke Robinson, Michael Chrien, and Stephen Tabler to the Civic Arts Commission for terms to be determined by lot at their first meeting, and place Sue Ping Shyy on a six-month eligibility list.

8. Appoint Shreyans J. and Elise H. as Youth Commissioners to the Library Board for a one-year term, and place and Aravind A. on a six-month eligibility list.

9. Appoint Jackson K. as a Youth Commissioner to the Park and Recreation Commission for a one-year term, and place Advika S., Zach S. and Katelyn L. on a six-month eligibility list.

10. Appoint Nektarios D. and Pranav S. as Youth Commissioners to the Senior Advisory Commission for a one-year term, and place Olivia Y . and Reed C. on a six-month eligibility list.

11. Appoint Advika S. and Zachary S. as Youth Commissioners to the Sustainability and Infrastructure Commission for a one-year term, and place Margaux T. and Oscar C. on a six-month eligibility list.

12. Appoint Talia F. and Taryn A. as Youth Commissions to the Civic Arts Commission for a one-year term, and place Naisha O. on a six-month eligibility list.

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CEQA: These appointment recommendations are not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

PUBLIC COMMENT
Members of the public wishing to comment on any item not appearing on the agenda may address the City Council at this time. State law prevents Council from taking action on any matter not on the agenda; your comments may be referred to staff for follow up.

Public comment is limited to a total of 15 minutes; however, an opportunity for additional public comment may be provided later in the agenda.

OLD BUSINESS

17. 2026 Transportation Program Annual Review — Progress Update Receive the 2026 Transportation Program Annual Review, summarizing progress on ongoing transportation plans and initiatives, key project updates, and performance metrics.

PUBLIC HEARING
City Council action on the following public hearing(s) represents a final decision concluding all administrative proceedings. Judicial review may be had only if a petition is filed with the Court not later than the 90th day following the date the decision is made.

Judicial review of environmental determinations may be subject to a time period for litigation as short as 30 days following the date the decision is made.

18. Fiscal Year 2026-27 Proposed Budget and 2026-31 Capital Improvement Program — Review Review the fiscal year 2026-27 proposed budget and the 2026-31 Capital Improvement Program budget and conduct a public hearing prior to the scheduled adoption at the June 15, 2026, City Council meeting.

CEQA: This FY 2026-27 budget is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

OLD BUSINESS

19. Senate Bill 707 (Brown Act Amendments): Technology Disruption Policy and Public Outreach and Interpretation Policy — Adoption
Adopt a Resolution to approve the City’s Technology Disruption Policy; adopt a Resolution approving the City’s Public Outreach and Public Interpretation Assistance Practices; and receive a presentation on Senate Bill 707 (SB 707), which made extensive amendments to the Brown Act, and its impacts on the City’s legislative bodies.

CEQA: This policy approval is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

REPORTS, ANNOUNCEMENTS, AND COMMITTEE UPDATES
City Manager, City Attorney and Council Members report on their various assignments and liaison roles and Council requests for scheduling future items.

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ADJOURNMENT
----------------------------------------------------------------------------------------------------------------------------- AGENDAS:

Agendas and material are posted on the City’s website on the Friday preceding each Council Meeting and can be viewed on the City's website at
www.cityofsanmateo.org
. Any supplemental material distributed to the Council after the posting of the agenda will be made part of the official record.

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City Council meetings are broadcast live on Comcast/channel 27, Wave/channel 26, or AT&T/channel 99.

For transmission problems during the broadcast, please call (650) 522-7099. For all other broadcast comments, call (650) 522-7040, Monday-Friday, 8 a.m. - 5 p.m.

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There are three ways to stream.
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www.cityofsanmateo.org/publicmeetings
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https://www.cityofsanmateo.org/193/Channel-San-Mateo-Live-Stream

PUBLIC COMMENTS/REQUEST TO SPEAK
Prior to the Meeting
Send comments to:
[email protected]
until 4 p.m. the day of the meeting.

During the meeting
By Zoom:

Click the link at the top of the agenda and you’ll be added to the meeting. All attendees are muted by default. When the item of interest is open for consideration, select the “Raise Your Hand” icon and you will be called on at the appropriate time.

By telephone:

Call (408) 638-0968 and enter the conference ID found at the top of the meeting agenda. When the item of interest is open for consideration, select *9 to raise your hand. When called upon, press *6 to unmute, state your name and provide your comments.

In Person:

At the meeting complete a “Request to Speak” form. Organized Group and Presentations: Up to five (5) minutes for a group presentation, with as many speakers as can be accommodated within that time allowance. To qualify for a group presentation, all individuals associated with the presentation must be clearly identified and confirmed as in attendance at the meeting. Presentation materials must be submitted to [email protected] one (1) business day in advance of the meeting.

ACCESSIBILITY:

In compliance with the Americans with Disabilities Act and to ensure meaningful access for all participants, including those with limited English proficiency, individuals requiring special accommodations or language assistance to participate in this meeting may contact the City Clerk’s Office at (650) 522-7040 or [email protected] . Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 4 Section Name: CONSENT CALENDAR Account Number: 14-4682 File ID: 26-11143 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 01, 2026
SUBJECT:

Downtown Cleaning Service — Amendment
RECOMMENDATION:

Approve Amendment No. 2 to the agreement with Frank & Grossman Landscape Contractors, Inc. to increase the agreement amount by $101,400 for the current fiscal year; execute the second of two optional, one-year extensions to extend the term of the agreement through June 30, 2027; increase the agreement by an additional $500,000 for the 2026- 27 fiscal year term, for a revised total agreement amount of $2,101,400; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue amendments within the agreement amount.

BACKGROUND:

The Downtown San Mateo Commercial District (Downtown) is one of the largest on the Peninsula and includes numerous retail and restaurant storefronts, as well as a movie theater. Serving as a dining and recreation destination for visitors throughout the area, extensive cleaning is needed to keep its streets and parking garages clean and visually attractive.

Due to increased pedestrian activity and associated litter in the Downtown area, staff have identified the need to expand cleaning services. Under the original scope of work, a single day porter was scheduled five (5) days per week, including one weekend day per week. As service demands increased, an additional porter was added to maintain cleanliness standards, effectively expanding coverage to seven (7) days per week. To better support ongoing maintenance needs and enhance public safety, staff recommend continuing this increased level of service by providing porter coverage seven days per week, along with an additional six hours of daily service.

In June 2025, Amendment No. 1 was approved by the Public Works Director to extend the agreement term through June 30, 2026, utilizing the first of two optional one-year extensions, and increase the total agreement amount from $1,000,000 to $1,500,000.

Amendment No. 2 would provide an additional $101,400 to support the increased service through June 30, 2026. In addition, staff recommends exercising the final optional one-year extension, extending the agreement term through June 30, 2027, and increasing the agreement amount by $500,000 for the increased service. Amendment No. 2 would increase the Agreement by a total of $601,400, for a revised total agreement amount of $2,101,400.

BUDGET IMPACT:

Approval of Amendment No. 2 will increase the agreement’s not-to-exceed amount by a total of $601,400, which includes $101,400 for expanded porter services and $500,000 associated with the one-year term extension, for a revised total contract amount of $2,101,400. Funding for the additional porter services for the current fiscal year is budgeted in the Street Sweeping operating budget in the Solid Waste Fund. Funding for the $500,000 increase to exercise the final optional one-year term extension has been requested as part of the budget development process for FY 2026-27 and is subject to

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Council approval of the budget. Staff will return to Council after July 1, 2026, to request additional funding to maintain the expanded porter services for FY 2026-27 as needed.

ENVIRONMENTAL DETERMINATION:

This agreement is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Amendment No. 2

STAFF CONTACT
Steve Wu, Facilities and Fleet Services Manager
[email protected]
(650) 522-7345

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3 AMENDMENT NO. 2 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
FRANK & GROSSMAN LANDSCAPE CONTRACTORS, INC. FOR

CUSTODIAL SERVICES FOR DOWNTOWN SAN MATEO AND SIMILAR AREAS ($1,000,000 [Original Amount] / $500,000 [Amendment No. 1] / $601,400 [Amendment No. 2]) WHEREAS, the City of San Mateo (“CITY”), a municipal corporation of the State of California, and Frank & Grossman Landscape Contractors, Inc. (“CONTRACTOR”), entered into an Agreement for Custodial Services for Downtown San Mateo and Similar Areas on June 9, 2023 (“Agreement”); and WHEREAS, the original two-year term of the Agreement ends on June 30, 2025, and the CITY has options to extend the original Agreement for up to two, one-year extensions on the same price and terms; and
WHEREAS, on June 27, 2025, Amendment No. 1 was executed exercising the first of two, one- year extensions, extending the term through June 30, 2026, and increasing the total not-to-exceed compensation of $1,500,000; and
WHEREAS, due to increased pedestrian traffic and associated litter in the Downtown area, the CITY has identified the need to expand porter services to maintain cleanliness standards and enhance public safety, including increasing service coverage to seven days per week and additional daily service hours; and
WHEREAS, the CITY and CONTRACTOR wish to amend the Agreement to revise the scope and increase the Agreement amount by $101,400 for these increased services; and WHEREAS, the CITY and CONTRACTOR wish to amend the Agreement to exercise the final one- year extension of the Agreement in the amount of $500,000, for a total Agreement amount of $2,101,400.

NOW, THEREFORE, the Parties agree as follows:

1. Section 4, “Term”, of the Agreement is amended to read as follows:
“The services to be performed under this Agreement shall commence on July 1, 2023, and be completed on June 30, 2027.”

2. Section 5, “Payment,” of the Agreement is amended to read as follows:
“Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibits A and A-1, CITY agrees to pay CONTRACTOR an amount not to exceed $2,101,400, a fee pursuant to rates stated in Exhibits A-1 and B, attached and incorporated by reference.”

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3 3. Exhibit A-1, attached, is hereby incorporated by reference.

4. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

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3 IN WITNESS WHEREOF, CITY OF SAN MATEO and FRANK & GROSSMAN LANDSCAPE CONTRACTORS, INC. have executed this Amendment No. 2 on ___________________.

CITY OF SAN MATEO CONSULTANT
Matt Fabry
Public Works Director
Date Gary Cooper
CEO
Date
Linh P. Nguyen
Assistant City Attorney
Date

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3 EXHIBIT A-1

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 5 Section Name: CONSENT CALENDAR Account Number: 10-4662 File ID: 26-11184 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 01, 2026
SUBJECT:

Citywide Street Rehabilitation Package 7B – Agreement
RECOMMENDATION:

Approve an agreement with Nichols Consulting Engineers, Inc. for design services for the Citywide Street Rehabilitation Package 7B project in an amount not to exceed $753,500; establish a contingency reserve of $76,000; and authorize the Public Works Director to execute the agreement in substantially the form presented and approve amendments, including no-cost time extensions, within the contingency amount.

BACKGROUND:

The City owns and maintains pavement assets consisting of approximately 200 miles of streets, bike paths, and alleyways.

The Pavement Management Program (PMP) is managed by Public Works and implements the annual pavement maintenance and capital improvements that cannot be performed by the City’s field maintenance crews.

On February 8, 2024, the City issued a Request for Proposals (RFP) for Engineering Design Services for multiple projects including Citywide Street Rehabilitation Packages 6B-1, 6B-2, and 7B (PMP 7B). This package of projects includes streets requiring more significant paving/reconstruction efforts. The City received a total of six proposals, which were evaluated on the proposed project team, approach, and estimated level of effort. Nichols Consulting Engineers, Inc. (NCE) was identified as the highest ranked proposal based on experience with similar projects, comprehensive approach, and favorable references. In addition, NCE’s proposed scope, schedule, and budget all align with the City’s needs.

Based on the above, staff recommends entering into a design professional services agreement with NCE to perform the design services for the PMP 7B project in an amount not to exceed $753,500 and establish a contingency of $76,000 (10% of the contract budget) to cover any unforeseen changes during the design process. Staff anticipates advertising the project for construction in May 2027.

BUDGET IMPACT:

There are sufficient funds in the Citywide Street Rehabilitation Program (Project No. 469997) project budget to award this agreement and establish the contingency reserve.

ENVIRONMENTAL DETERMINATION:

This project is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)

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NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Agreement
Att 2 – Location Map - Citywide Street Rehabilitation Phase 7-B Scope of Work

STAFF CONTACT
Stephanie Piñon, Senior Engineer
[email protected]
(650)522-7315

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9 AGREEMENT WITH NICHOLS CONSULTING ENGINEERS, INC.

FOR DESIGN PROFESSIONAL SERVICES
FOR
CITYWIDE SURFACE TREATEMENT PACKAGE 7-B
This Agreement, made and entered into this day of ____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California (“CITY”), and Nichols Consulting Engineers, Inc., a corporation, (“CONSULTANT”), whose address is 1003 W. Cutting Blvd, Suite 110, Richmond CA 94804:

RECITALS:

A. CITY desires certain professional engineering design services hereinafter described.

B. CITY desires to engage CONSULTANT to provide these professional engineering design services by reason of its qualifications and experience for performing such services and CONSULTANT has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES
The scope of services to be performed by CONSULTANT under this Agreement is as described in Exhibit A to this Agreement, attached and incorporated by reference.

SECTION 2 - DUTIES OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONSULTANT under this Agreement. CONSULTANT shall, without additional compensation, correct or revise any errors or deficiencies in its work.

CONSULTANT represents that it is qualified to furnish the services described under this Agreement.

CONSULTANT shall be responsible for employing or engaging all persons necessary to perform the services of CONSULTANT.

CONSULTANT agrees to comply with the City’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.

SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.

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9 CITY shall examine documents submitted by CONSULTANT and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONSULTANT's work.

SECTION 4 - TERM
The services to be performed under this Agreement shall commence upon execution of agreement and continue until all work is completed and accepted by the City’s project manager.

CITY agrees to exercise due diligence in performing its tasks to implement the CONSULTANT'S timetable.

SECTION 5 - PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONSULTANT a fee, on a time and expense reimbursement basis, in an amount not to exceed $753,500, pursuant to rates stated in Exhibit B to this Agreement, attached and incorporated by reference.

SECTION 6 - TERMINATION
Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONSULTANT. CONSULTANT agrees to cease all work under this Agreement upon receipt of said written notice.

Upon termination and upon CITY's payment of the amount required to be paid, documents become the property of CITY, and CONSULTANT shall transfer them to CITY upon request without additional compensation.

SECTION 7 - OWNERSHIP OF DOCUMENTS
All documents prepared by CONSULTANT in the performance of this Agreement, although instruments of professional service, are and shall be the property of CITY, whether the project for which they are made is executed or not.

SECTION 8 - CONFIDENTIALITY
All reports and documents prepared by CONSULTANT in connection with the performance of this Agreement are confidential until released by CITY to the public. CONSULTANT shall not make any such documents or information available to any individual or organization not employed by CONSULTANT or CITY without the written consent of CITY before any such release.

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9 SECTION 9 - INTEREST OF CONSULTANT
CONSULTANT covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement.

SECTION 10 - CONSULTANT'S STATUS
It is expressly agreed that in the performance of the professional services required under this Agreement, CONSULTANT shall at all times be considered an independent CONSULTANT as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONSULTANT an agent or employee of CITY while providing services under this Agreement.

SECTION 11 - INDEMNITY
CONSULTANT agrees to hold harmless and indemnify CITY, its elected and appointed officials, employees, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONSULTANT’s negligence, recklessness or willful misconduct to the maximum extent permitted by state law. To the extent permitted by Civil Code section 2782.8, CONSULTANT agrees to defend City, its elected and appointed officials, employees, and agents against any such claims. The CONSULTANT’S duty to indemnify shall survive expiration or early termination of this Agreement.

SECTION 12 - INSURANCE
CONSULTANT shall procure and maintain for the duration of the contract and three years thereafter (five years for building or major improvements) the insurance specified in Exhibit C to this Agreement.

SECTION 13 - NONASSIGNABILITY
Both parties hereto recognize that this Agreement is for the personal services of CONSULTANT and cannot be transferred, assigned, or subcontracted by CONSULTANT without the prior written consent of CITY.

SECTION 14 - RELIANCE UPON PROFESSIONAL

SKILL OF CONSULTANT
It is mutually understood and agreed by and between the parties hereto that CONSULTANT is skilled in the professional calling necessary to perform the work agreed to be done under this Agreement and that CITY relies upon the skill of CONSULTANT to do and perform the work in the most skillful manner, and CONSULTANT agrees to thus perform the work. The acceptance of CONSULTANT's work by CITY does not operate as a release of CONSULTANT from said obligation.

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The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.

SECTION 16 – SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

SECTION 17 - COSTS AND ATTORNEY FEES
Attorney fees in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of this Agreement. The above $5000 limit is the total of attorney fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this Agreement that neither party shall have to pay the other more than $5000 for attorney fees arising out of an action, or actions to enforce the provisions of this Agreement.

SECTION 18 - NON-DISCRIMINATION
CONSULTANT warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONSULTANT nor any of its sub-consultants shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act.

SECTION 19 - MEDIATION
Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the State Mediation and Conciliation Service, or other agreed-upon service. The mediator shall be selected by a blind draw.

The cost of mediation shall be borne equally by the parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.

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CONSULTANT shall testify at CITY's request if litigation is brought against CITY in connection with CONSULTANT's services under this Agreement. Unless the action is brought by CONSULTANT, or is based upon CONSULTANT's wrongdoing, CITY shall compensate CONSULTANT for preparation for testimony, testimony, and travel at CONSULTANT's standard hourly rates at the time of actual testimony.

SECTION 21 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:

To CITY: City of San Mateo
Attn: Stephanie Piñon
330 W 20th Avenue
San Mateo, CA 94403
To CONSULTANT: Nichols Consulting Engineers, Inc
Attn: Jenny Van Dyke
1003 W. Cutting Blvd, Suite 110
Richmond, CA 94804
SECTION 22 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations, and agreements, either written or oral.

This document may be amended only by written instrument, signed by both CITY and CONSULTANT.

SECTION 23 - AUTHORITY TO ENTER INTO AGREEMENT
CONSULTANT has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.

SECTION 24 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.
[SIGNATURE PAGE FOLLOWS]

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9 IN WITNESS WHEREOF, CITY and CONSULTANT have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONSULTANT
Matt Fabry
Director of Public Works
Date Margot Yapp
President
Date

APPROVED AS TO FORM
Linh P. Nguyen
Assistant City Attorney
Date
Attachments:

Exhibit A: Scope of Services
Exhibit B: Payment Rates
Exhibit C: Insurance Requirements

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SCOPE OF SERVICES

PROJECT DESCRIPTION
CONSULTANT’s scope of services includes evaluating the condition of the pavement of the street segments, conduct surveys, perform geotechnical investigations, and recommend pavement rehabilitation solutions. CONSULTANT will prepare basis of design report, preliminary and final design plans, specifications and estimates for City to advertise the Citywide Street Rehabilitation 7B Project (Project). The following streets and limits are included in this scope of services:

Street Name Begin End
27th Ave Alameda De Las Pulgas Hacienda St
Alley 14 42nd Ave 41st Ave
Aragon Blvd Alameda De Las Pulgas Harvard Rd
Buena Vista Ave Alameda De Las Pulgas Isabella Rd
De Anza Blvd S.R. 92 Polhemus Rd
De Anza Ct De Anza Blvd End
Delaware St Sunnybrae Blvd Birch Ave
Edinburgh St Castilian Way Aragon Blvd
Eldorado St Poplar Ave Cypress Ave
Norfolk St Kehoe Ave Dale Ave
Norfolk St Flint Ave Waters Park Dr
Oakwood Dr S End N End
O'Farrell St W 20th Ave End
Parrott Ct and Timberlane Rd City Limit N End and S End Pinewood Ct Parkwood End

SCOPE OF WORK
Task 1 – Project Management & Meetings
1A) Project Management and Progress Meetings
NCE’s Project Manager will arrange a kick-off meeting with the City to initiate work on the project. The objectives will be:
Review of the Scope of Work
Establish Lines of Communication
Establish Project Schedule and Milestones
Define Design and Operation Criteria
It is critical to establish effective lines of communication with, and coordination amongst, the various stakeholders from the start to ensure delivery of a high-quality project within budget and on schedule.

In addition to City staff (Engineering, Maintenance, etc.), NCE will research and coordinate, as needed, with other agencies such as PG&E, AT&T, Caltrans, California Water Service and Westborough Water

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9 District, San Mateo Sewer, Stormwater and Wastewater, Schools, etc., to identify any potential conflicts, requirements, or design issues early to help minimize delays (and costs) later in the design process or during construction. At the Kick-Off Meeting, key deliverables for each Task and the Project Schedule would be reviewed and adjusted accordingly to meet City needs.

Throughout the project, NCE staff will be available to attend monthly progress meetings with the City to maintain frequent communication and efficient decision making with the City. Monthly meeting summaries will be prepared and submitted to the City that include completed activities summary, scheduled activities for next month, any issues identified from field review or data collection, updated project schedule, budget status, and other important project information identified in the kick-off meeting. The purpose of the progress meetings will be to identify and resolve any design or funding issues in a timely manner, present design alternatives and recommendations to City staff, and continue coordination with project stakeholders as necessary. Specific design submittal review meetings with City staff will be scheduled at each submittal milestone.

NCE’s project manager will maintain regular communication with the City and design team, managing the project scope, submittal development and delivery, project schedule, and accounting.

Deliverables
Kick-off/Progress Meeting Agendas and Summaries; Monthly invoices 1B) Utility Coordination
As noted in the project Key Assumptions, NCE will share notification letters to applicable utility providers with a preliminary project schedule for street maintenance and rehabilitation, followed by planned treatment or excavation depth and approximate utility location information. This notification will occur at the time of project kick-off to allow utility providers to perform maintenance on their facilities prior to utility cut moratorium on the street paving areas and evaluate need for utility adjustments/lowering.

NCE will document all utility coordination notifications, conversations, and meetings with utility contacts and information in a matrix format with dates of correspondence. NCE will also keep the City informed of any project delays related to utilities.

Deliverables
Utility notification letters
Utility coordination matrix
Task 2 – Pavement Rehabilitation Design
2A) Pavement and Curb and Gutter Condition Survey
NCE will perform a visual pavement condition survey of each street section based on distresses. The surveys will generally cover the travel and parking lanes and serve the purpose of refining the appropriate pavement treatments and identifying any potential problematic subgrade or drainage issues.

The survey will note the presence of load related and environmental distresses as they pertain to developing appropriate pavement treatments. Potential base repairs will be identified, marked, and recorded using GPS based software. Our scope of work and condition surveys do not address issues including but not limited to traffic, safety and road hazards, geometric issues, or short-term maintenance that should be performed (i.e., pothole that should be repaired).

A visual assessment of all C&G will be included to identify areas where drainage or the adjacent pavement has been compromised. Based on criteria established with the City, NCE will determine what

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9 level of curb and gutter replacement will be pursued for design plans and documents. If damaged C&G areas are more extensive than anticipated, it may require additional time to complete the surveys and we will notify the City. A summary table of repair candidates will be prepared with pertinent information including street, location, length, and picture, for City review and confirmation.

Deliverables
Summary table of curb and gutter repair candidates.
2B) Pavement Coring
NCE will collect pavement section core samples (4” – 8” diameter cores) on all project street sections at locations determined by NCE. Our current fee estimate assumes up to 42 core locations that we estimate will take up to 9 days to complete. For each core sample, NCE will measure and record the thickness of asphalt and concrete encountered in the pavement structural section, including the presence of any pavement reinforcing fabric.

Bulk samples of subgrade will be obtained in support of potential street reconstruction in accordance with the Key Assumptions. Up to 21 bulk samples (at least one bulk sample on each pavement section for rehabilitation) of subgrade materials will be tested for R-value, moisture content and Atterberg Limits (plasticity index, PI). The AB thickness will be measured/estimated in accordance with the Key Assumptions. NCE will arrange for traffic control services during pavement coring, which will conform to the latest standards contained within the MUTCD Part VI and the Caltrans Traffic Manual Chapter 5 “Traffic Control for Construction and Maintenance Work Zones,” as well as any local requirements that exist. We will also obtain an encroachment permit for pavement coring if required. NCE will also develop a map showing proposed coring locations for the City to review and to facilitate the encroachment permit if required.

Deliverables
Map of proposed coring locations.
City encroachment permit application
2C) Pavement Deflection Testing
NCE will perform non-destructive pavement deflection testing in accordance with California Test Method (CTM) 356 to evaluate the structural capacity of the existing pavement section on the subject arterial and collector streets to be rehabilitated. The FWD is a conceptually simple yet powerful device for measuring the response of pavements under simulated wheel loads and estimating their structural capacities. All travel lanes of each arterial and collector street section will be tested at approximately 100-foot intervals.

Approximately 140 data points will be collected and NCE estimates that the FWD testing will take 1 day to complete. NCE will also include deflection testing in encroachment permits referenced under Key Assumptions, similar to coring work. Additionally, NCE will provide traffic control in accordance with the same standards discussed in pavement coring task.
2D) Pavement Design Recommendations
Using the data obtained in Task 2, NCE will perform pavement analysis and design services, and develop pavement maintenance, rehabilitation, and reconstruction recommendations for each street section.

NCE will perform its analysis in accordance with the Caltrans Highway Design Manual and develop pavement structural section recommendations expressed in the form of a Traffic Index (TI) that will be

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9 provided by the City. NCE will develop recommendations including, but not limited to, the following:
Surface Seal Applications: Slurry seal, Microsurfacing (Type II and Type III), Rubberized chip seal, combinations thereof
Rehabilitation: Mill and Overlay, Cold-in-Place Recycling (CIR), Rubberized Hot Mix Asphalt (RHMA)
Reconstruction (as needed): Hot Mix Asphalt (HMA) over AB, Full-Depth HMA, and FDR Locations and treatments of failed pavement sections (base repairs) NCE will then summarize its recommendations in a pavement design memorandum to the City that, at a minimum, will include the following:
Results of pavement condition surveys, deflection testing, coring, and laboratory testing Description of testing procedures and analysis performed for the project Recommended alternatives for rehabilitation and preventive maintenance NCE will submit an electric copy of its draft technical and basis of pavement design memorandum to the City for initial review. Preliminary design results will be presented to the City including facilitating a workshop that will be attended by City staff for acceptance prior to proceeding with detailed design work. Upon receipt of any comments from the City, NCE will then prepare its final technical and basis of pavement design memorandum, which will be signed and stamped by NCE’s Pavement Engineer. The final technical and basis of design pavement memorandum will then be provided to the City reflecting any comments on the draft technical memorandum. NCE’s staff, including the project manager, lead civil project engineer, and principal engineers will also be available for up to two (2) additional strategy meetings to discuss pavement treatments, subgrade issues, costs, geometric considerations (e.g. drainage and cross-slopes) pavement performance and longevity, construction impacts, and utility constraints.

Task 3 – Rehabilitation Plans, Specifications & Estimates 3A) Design Data Gathering
NCE will review relevant available data and records from the City as listed in Task 1 and stated Key Assumptions, and other sources that may be appropriate to support the preparation of project contract documents. These may include, but are not limited to, as-built street improvement and infrastructure plans, including any preliminary plans for future work that may conflict with this project. The gathered information will be compiled and included in the base map used for design.

Available record data (e.g., utilities, right-of-way) used to prepare street base maps will account for utility lids or surface features within the roadway which may be affected by paving operations. NCE will conduct a field survey, using GPS based software to collect existing roadway features including roadway geometry from visual inspection, utility covers, typical cross-slopes at pedestrian crossings, striping and markings, and relevant traffic signage.

Record data for streets to have topographic survey will be shown in their approximate location. Utility depths from available as-builts will be included in the base map for streets to be reconstructed. Based on our review we will identify any data gaps or missing information and provide this information to the City for review and discussion. NCE will discuss with the City whether rehabilitation work must occur in the right-of-way, to save the City the cost and fees associated with obtaining encroachment permits, if at all possible.

Deliverables
Base maps (included in subsequent tasks).

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NCE’s Project Surveyor will complete monument/control recovery, field investigation and field surveys sufficient to prepare a topographic mapping product for select street locations and proposed curb ramp design locations, as stated under Key Assumptions. The mapping shall be compiled at an agreed upon scale with a 1’ contour interval and will be based on the City Datum.

The mapping area for Alley 14 and Parrott Court shall be a corridor along the street section between the existing back of walk to opposite back of walk, starting and stopping at the designated locations and including through the returns of the terminating streets. In the absence of an existing sidewalk, the survey will extend to 5 feet behind the curb or edge of pavement, or up to the first substantial barrier (wall, fence, etc.). Mapping will extend 25 feet beyond the curb return up each intersecting side street.

The topographic data to be collected is more specifically defined as:
Cross-sections at 50’ intervals along with detailed surface topography and/or additional spot elevations as required defining the longitudinal and cross-slope grade breaks. Surveyed locations for significant surface features. A structure inventory for sanitary and storm drain facilities reflecting rim and invert elevations, pipe direction and size will be provided for accessible structures.
Location of all surface evident street monumentation within the mapping corridor. Location of underground utility locator markings, where provided. Provide a finished draft topographic survey for each area of work and AutoCAD Civil3D DTM surface for each street section.

Our surveyor will calculate the record data location of the existing right-of-way for the mapping corridor and will calculate and show the location of each adjoining parcel lot line from record data (assessor’s parcel data, record mapping and apparent lines of occupation). It should be noted that property line data will not be based upon a field survey and is considered approximate.

Note that boundary survey is not included in the curb ramp surveys and estimated right of way will be based on available mapping information indicating width of public right of way relative to the existing back of walk.

Deliverables
Topographic survey results.
3C) Preliminary Design (30% P&E)
Using data collected in previous tasks, NCE will develop preliminary design documents (30% level of completion) for each street section. Preliminary design drawings will be based on base maps prepared using information collected in previous tasks and as stated in Key Assumptions. Drawings will include existing right-of-way and depict basic street layout and preliminary pavement treatments with pertinent geometric information. Drawings will be scaled at a scale of 1” = 20’.

The Engineer’s Cost Estimate will be prepared in MS Excel format and based on the most recent construction cost data available to NCE for projects of this type. The 30% plans will be prepared in AutoCAD format on 22” x 34” sheets. It is assumed that the City will require a 15-day review/comment period once each 30% P&E package is submitted.

In combination with our pavement design and basis of design technical memorandums, during development of the 30% P&E we will discuss and confirm pavement treatment alternatives, subgrade stabilization measures, street geometric constraints and cross-slopes, curb and gutter replacement, non-

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9 compliant curb ramps, drainage issues, and summary of utility location data and possible utility conflicts/concerns. NCE’s staff including the project manager, lead civil project engineer, and principal engineers will also be available for up to two (2) additional strategy meetings during preliminary design for each design package. Strategy discussions will focus on key design elements and constraints, overall schedule and budget, community outreach and key issues, lessons learned from previous projects and how to structure and develop construction documents with respect to reducing construction impacts, bidding strategies including packaging and alternates, sequencing of streets and work, and contingencies.

Deliverables
Meeting agendas and summaries for up to two (2) strategy meetings per design package. One reproducible copy of 30% plans, engineer’s estimate, and summary of agreed upon design criteria and decisions for each design package.
3D) 90% PS&E
Preliminary P&E (30% P&E) will be revised to incorporate comments received from the City as well as agreed upon design criteria and decisions, from which the 90% PS&E will be prepared. NCE will provide a response to each comment that is included in a comment table provided by the City.

The 90% plans will incorporate typical design elements, existing and proposed contours (where available), pavement treatments, right-of-way parcel lines, wedge or conform grind locations, typical cross-sections, C&G repairs, gutter flow line for drainage repairs, curb ramp replacement and details and limits of work, and site-specific striping and signage plans. Plan sheets will include base repair schedules and show individual repair locations.

NCE will prepare the project technical Special Provisions in MS Word format and follow the City’s formatting conventions, with reference to Caltrans 2018 Standard Specifications and City standard provisions. NCE may recommend deviating from Caltrans standards where, from our experience, such changes will improve the likelihood of achieving a successful construction project for a local agency without compromising the integrity of the design.

The Engineer’s Cost Estimate will be updated to reflect the refined construction design. It is assumed that the City will require a 15-day review/comment period once each 90% PS&E package is submitted.

Deliverables
One reproducible copy of 90% plans, technical specifications, and engineer’s estimate 3E) Final (Bid Set) PS&E
The 90% PS&E will be revised to incorporate comments received from the City to prepare the Final (Bid Set) PS&E. Similar to 90% PS&E, NCE will provide a response to each comment that is included in a comment table provided by the City. The Final (Bid Set) PS&E will include all notes and details necessary for construction. One electronic copy of the final (Bid Set) PS&E will then be packaged and submitted similar to the 90% PS&E unless directed otherwise. Upon receipt of the City’s final review comments, the project documents will be finalized for bidding purposes. A final quantity calculation will be tabulated and entered into the final Engineer’s Cost Estimate for each project. All final documents will be reviewed, stamped, and signed by NCE’s registered civil engineer, and the Final PS&E will be delivered to the City in electronic format.

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One electronic file of the final plans, technical specifications, and engineer’s estimate for each design package. The electronic files for the final construction plans, specifications, and engineer’s estimate will be in AutoCAD 2026 or later version, Microsoft Word, and Microsoft Excel, respectively.

Task 4 – Green Stormwater Infrastructure Plans, Specifications & Estimates 4A) Design Data Gathering and Preliminary Site Selection NCE will review relevant available data and records from the City as listed in Task 1 and stated Key Assumptions, and other sources that may be appropriate to identify candidate GSI locations and support the preparation of project contract documents. NCE will visit candidate locations noted in Table 1 and any others which may be identified by the City. Data sources may include, but are not limited to, as-built street improvement and infrastructure plans, City provided stormwater mapping information. The gathered information will be compiled and included in the base map used for GSI feasibility review and potential construction design.
4B) DMA and IMP Delineation
To preliminarily calculate the potential areas that can be used for bioretention, or GSI, acting as integrated management practice (IMP), NCE will use available mapping information to evaluate existing drainage patterns and storm drain infrastructure within the project sites that could potentially accept onsite runoff. NCE will delineate Discrete Management Areas (DMAs) or catchments draining to each potential IMP area to determine if adequate treatment could be provided for each DMA (assuming no grading changes to existing topography). A ratio of IMP area to impervious DMA area was calculated.

From the C.3 guidebook, a ratio of 0.04 (4%) is required for bioretention facilities to DMA impervious area.

The preliminary findings from Tasks 4A and 4B will be summarized and shared and discussed with the City to confirm candidate GSI locations to be surveyed in Tasks 4C and 4D, where further field data collection and review of existing conditions, including potential utility conflicts, will be assessed. 4C) Utility Location (GPR)
At candidate locations determined in Task 4B, NCE’s utility locator will use GPR to field locate utility alignments and depths for utility mains and laterals for utilities within sidewalk and immediately adjacent roadway shoulder areas to the extent that GPR methods can detect utilities. It is assumed that up to 8 locations will be surveyed. GPR along utility mains will be marked at various locations along the segment, and the accuracy of the electronic depths will depend on the soil conditions and utility material.

Traffic control will not be provided as location efforts will remain at or adjacent to the sidewalk or medians. Pressure washing of paint marks is excluded from this scope.

Deliverables
Marked utility depth and alignments and electronic collection of utility information. 4D) Topographic Survey
Similar to the scope described in Task 3B, NCE’s Project Surveyor will complete monument/control recovery, field investigation and field surveys sufficient to prepare a topographic mapping product for candidate GSI locations identified in Task 4B. Survey limits will extend up to 100 feet in either direction of the curb line of the candidate GSI location and up to the street centerline. The survey will incorporate

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Deliverables
Topographic survey results.
4E) Preliminary GSI Design (30% P&E)
Similar to the scope described in Task 3C, using data collected in previous tasks, NCE will develop preliminary design documents (30% level of completion) for each candidate location identified and field surveyed. Preliminary design drawings will be based on base maps prepared using information collected in previous tasks and as stated in Key Assumptions. Drawings will include existing right-of-way and depict basic street layout and preliminary pavement treatments with pertinent geometric information.

Drawings will be scaled at a scale of 1” = 20’. The design will focus on civil design improvements and landscape and irrigation design will be developed with subsequent design submittals.

The P&E in Task 4E will be incorporated into and submitted with that in Task 3C as part of a complete P&E submittal package.

4F) 90% GSI PS&E
Similar to the scope described in Task 3D, the Preliminary GSI P&E (30% P&E) will be revised to incorporate comments received from the City as well as agreed upon design criteria and decisions, from which the 90% PS&E will be prepared. The civil design will be further advanced and draft landscape and irrigation designs will be completed and incorporated into the 90% submittal. It is understood that the GSI designs will be bid together with the civil design prepared in Task 3. 4G) Final (Bid Set) GSI PS&E
Similar to the scope described in Task 3E, the 90% GSI PS&E will be revised to incorporate comments received from the City to prepare the Final (Bid Set) PS&E. The Final (Bid Set) PS&E will include all notes and details necessary for construction. One electronic copy of the final (Bid Set) PS&E will then be packaged and submitted similar to the 90% PS&E unless directed otherwise.

Task 5 – Bidding Support Services
NCE will provide the City with assistance during the advertisement and bidding period including attending the pre-bid conference, responding to questions about the project design, and preparation of any addenda and/or clarifications to the PS&E that are deemed necessary. We have included up to 40 hours of staff time for bidding support. Any effort beyond that will be on a time and materials basis at an additional cost.

Deliverables
Attend pre-bid meetings; Prepare responses to questions received regarding project design; Prepare bid addenda as necessary; and assist with bid responsiveness (as needed).

Task 6 – Construction Support Services
NCE will provide up to 104 hours of support services to the City during construction. At a minimum, these services are anticipated to include attendance at the pre-construction conference, reviewing contractor submittals and responding to contractor RFIs, field verification of localized repair (base repairs and C&G) areas, subgrade repairs after proof rolling, curb ramp layouts, landscape submittal and site visits,

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9 providing recommendations for any necessary construction changes due to unforeseen field conditions, and reviewing construction for acceptance. This task does not provide any field inspection services. If effort beyond the estimated hours is necessary, NCE staff time will be delivered on a time and materials basis at an additional cost.

Deliverables
Attend Pre-Construction Conference; Assist with review of contractor submittals and RFIs as necessary; Provide recommendations for any necessary construction changes due to unforeseen conditions; and Assist with review of contract change orders.

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9 EXHIBIT C

INSURANCE REQUIREMENTS

MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:

1.Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2.Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if CONSULTANT has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3.Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

4.Professional Liability (Errors and Omissions): Insurance appropriate to the CONSULTANT’s profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate If the CONSULTANT maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its elected and appointed officials, employees, and agents are to be covered as insureds on the auto policy for liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the CONSULTANT; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONSULTANT including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the CONSULTANT’s insurance (at least as broad as ISO Form CG 20 10, 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used).

Primary Coverage
For any claims related to this contract, the CONSULTANT’s insurance coverage shall be primary insurance as respects the City, its elected and appointed officials, employees, and agents. Any insurance or self-insurance maintained by the City, its elected and appointed officials, employees, or agents shall be excess of the CONSULTANT’s insurance and shall not contribute with it.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City. If a Notice of Cancellation endorsement is not available, CONSULTANT shall ensure the requisite Notice of

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9 Cancellation is specified in the Certificate of Insurance. In the event the Notice of Cancellation is not specified in the Certificate of Insurance, Consultant shall be responsible for providing the City the requisite notice as specified in this Exhibit C.

Waiver of Subrogation
CONSULTANT hereby grants to City a waiver of any right to subrogation which any insurer of said CONSULTANT may acquire against the City by virtue of the payment of any loss under such insurance.

CONSULTANT agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the CONSULTANT to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Verification of Coverage
CONSULTANT shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULTANT’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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Burlingame
Gardens
Burlingame
Lower Crystal
Spring Reservoir
280
Chateau Dr
Skyline
Blvd
Burlingame
Country Club
Hillsborough
Knolls
San Mateo
Park
Burlingame
Park
Baywood Park
Highlands
Hillsborough
Burlingables Shoreline
Laurel Creek
82 S
B
St
Kehoe Ave
Palm
Ave
Marine Pkwy
ShorewayRd
42nd Ave
Tilton Ave
Laurelwood
Park
College of San
Mateo
Explorers
Central
Parkside
Sterling Downs
Homeview
Fiesta Gardens
Nineteenth
Avenue Park Edgewater Isle
Chess
Admirals
Downtown San
Mateo
Birds
Central
Constellations
and Stars
Town Center
Southeast
Hillsdale
Southwest
Hillsdale
Boats and Boat
Parts
College
Heights
Northeast
Hillsdale
East San
Mateo
Laurelwood
Bay Meadows
San Mateo
Village
Aragon
South
Shoreview
Shoreline Park
Country Club
Heights
Hillsborough
Heights
Bridgepoint
Westshore
Lincoln
Lauriedale
Islands
Northwest
Hillsdale
Foothill Terrace
Baywood
Knolls
Los Prados
North
Shoreview
Mariners Island
North Central
Sunnybrae
Famous Ships
San Mateo
Heights
Highlands-Baywood
Park
Foster City
San M at eo
¯
Citywide Street Rehabilitation Phase 7-B Scope of Work

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1 Alby Calles
From: Josie Buchwald
Sent: Monday, June 1, 2026 9:09 AM
To: City Council (San Mateo)
Subject: Bike Lanes on Aragon Blvd
City Council,

The Class 2 bike lanes on Aragon Blvd in their current form are too narrow, unsafe and unusable, and do not meet safety standards. Please use the upcoming repaving project on Aragon Blvd to construct bike lanes that are wider, safer, and therefore usable, leading directly to Aragon High School, Baywood School, and Carey School.

Kids biking to school creates happy and healthy students and reduces greenhouse gases (a San Mateo 2040 plan priority), reduces VMT (vehicle miles traveled), and traffic congestion.

Please create a Safe Route to School for our students as a part of this repaving project.

Thank you,
Josie Buchwald and Óttar Gíslason
San Mateo residents

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1 Alby Calles
From: Mike Swire
Sent: Sunday, May 31, 2026 10:25 PM
Subject: June 1 Item #5 - Pavement Rehab
Dear City of San Mateo Leaders,

I am writing regarding #5 on Monday's Council agenda: the repaving of several streets in SM.

Per previous discussions, I want to ensure the City is incorporating safe streets improvements into its upcoming paving plans. Doing so makes our streets safer, reduces costs to taxpayers, and minimizes construction inconvenience for drivers and other citizens. San Francisco and other cities across the country have adopted this practice.

What safety improvements are occurring with this proposal?

For example, the City is proposing the repaving of Aragon Blvd near Alameda. The current design features Class II bike lanes which are unsafe.

As you can see from this image, the bike lanes are <3' wide depending on the size of the vehicle parked on the curb and in the door zone. Best practice, however, suggests that bike lanes be 5-6' wide.

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2 Bike lanes are important here considering the proximity to Aragon High and Baywood Elementary Schools and the high number of crashes in the area. Could we take this opportunity to install protected bike lanes or advisory bike lanes?

Thank you,

Mike Swire

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1 Alby Calles
From: Mary Burns
Sent: Monday, June 1, 2026 8:59 AM
To: City Council (San Mateo)
Subject: Please improve bike lanes on Aragon Blvd
City Council,

Kids biking to school creates happy and healthy students and reduces greenhouse gases (a San Mateo 2040 plan priority), reduces VMT (vehicle miles traveled) and traffic congestion.

Please create a Safe Route to School for our students as a part of this repaving project.

Thank you,
Mary Burns
San Mateo resident

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1 Alby Calles
From: Jon Felder
Sent: Monday, June 1, 2026 8:54 AM
To: City Council (San Mateo)
Cc: Allison MacQueen Felder
Subject: Aragon Blvd repaving please add full bike lanes with green paint San Mateo City council,

I have been a teacher at Aragon High School since 2015 and bike to school daily.

Please use the upcoming repaving of Aragon Blvd to construct bike lanes with green paint that run from El Camino Real to Alameda de las Pulgas.

This would make it safe for students and staff to be able to bike to Aragon High School.

Jon Felder

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1 Alby Calles
From: Erin Livingston
Sent: Monday, June 1, 2026 1:20 PM
To: City Council (San Mateo)
Subject: Aragon Bike Lanes
City Council,

Kids biking to school creates happy and healthy students and reduces greenhouse gases (a San Mateo 2040 plan priority), reduces VMT (vehicle miles traveled) and traffic congestion.

Please create a Safe Route to School for our students as a part of this repaving project.

Thank you,
Erin Livingston
San Mateo resident

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1 Alby Calles
From: Zack Horn
Sent: Monday, June 1, 2026 10:04 AM
To: City Council (San Mateo)
Subject: Request: Improved Bike Lanes on Aragon Blvd.

City Council,

Kids biking to school creates happy and healthy students and reduces greenhouse gases (a San Mateo 2040 plan priority), reduces VMT (vehicle miles traveled) and traffic congestion.

Please create a Safe Route to School for our students as a part of this repaving project.

Thank you,
Zack Horn
San Mateo resident

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1 Alby Calles
From: President Council PTA
Sent: Monday, June 1, 2026 8:54 AM
To: City Council (San Mateo)
Subject: Aragon Blvd - create a Safe Rout to School
City Council,

Baywood School (a part of the SMFC District), Carey School and Aragon High School deserve Safe Routes to School. There is no safe biking route to these schools right now and the upcoming repaving project is a great opportunity to improve this corridor.

The bike lanes on Aragon Blvd iare too narrow, unsafe and unusable, and do not meet safety standards. Please use the upcoming repaving project on Aragon Blvd to construct bike lanes that are wider, safer, and therefore usable, leading directly to Aragon High School, Baywood School, and Carey School.

Kids biking to school creates happy and healthy students and reduces greenhouse gases (a San Mateo 2040 plan priority), reduces VMT (vehicle miles traveled) and traffic congestion.

Please create a Safe Route to School for our students as a part of this repaving project.

Allison MacQueen
SMFC PTA Council President

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 6 Section Name: CONSENT CALENDAR Account Number: 72-4674 File ID: 26-11194 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 01, 2026
SUBJECT:

Annual Sewer Basin Rehabilitation On-Call Design Services — Amendments RECOMMENDATION:

Approve an amendment to an agreement with CSG Consultants for on-call professional services to increase the agreement amount by $350,000, for a new total agreement amount of $1,850,000, and extend the term of the agreement to February 2029; approve an amendment to the agreement with Wilsey Ham dba WHB Engineers, Inc. for on-call professional services to increase the agreement amount by $1,250,000, for a revised total agreement amount of $2,750,000, and extend the term of the Agreement to February 2029; approve an amendment to the agreement with Freyer & Laureta, Inc. for on-call professional services to extend the agreement term to February 2029; and authorize the Public Works Director to execute the amendments in substantially the form presented and issue project-specific task orders under these agreements.

BACKGROUND:

The Clean Water Program (CWP) includes significant infrastructure upgrades at the Wastewater Treatment Plant (WWTP) and throughout the sanitary sewer collection system to improve wastewater system capacity, flow management, and reduce inflow and infiltration to comply with regulatory requirements. Cleaning and video inspection of sanitary sewer mains is needed to identify locations for repair, rehabilitation, or replacement of sewer mains. Professional and design services are necessary to complete the planned sewer rehabilitations.

On July 18, 2022, City Council approved professional consultant services agreements with Schaaf & Wheeler, CSG Consultants (CSG), Wilsey Ham DBA WHB Engineers, Inc. (Wilsey Ham), and Freyer & Laureta, Inc. (Freyer & Laureta) to provide sewer rehabilitation design services for the CWP. Each agreement established a budget of $1,500,000 with 5-year terms. The scope for on-call services included: management and performance of sewer cleaning and video inspection, evaluation of inspection data, developing bid documents (plans, details, specifications, construction cost estimates), bid support services, and providing services during construction for sewer rehabilitations. The City’s sewer collection system is split into five basins. Since the July 2022 Council approval, the four firms have been issued task orders to work on specific sewer basins.

CSG was issued a task order to work on Basin A and is in the process of CCTV data evaluations and initial design work. Due to rising CCTV costs, the CCTV phase of CSG’s work costs more than predicted when the design services agreement was issued. An increase in budget is necessary so that CSG may continue their work on Basin A with detailed design in Summer 2026 and provide services during construction when Basin A begins construction in Fiscal Year 2026-27. The proposed increase to the agreement of $350,000 would provide sufficient budget for CSG to support City staff through the completion of the Basin A project.

Wilsey Ham was issued a task order to work on the El Camino Real and Large Diameter Sewer Rehabilitation project and has provided a proposal to begin work on the next Basin E sanitary sewer rehabilitation project, which would include CCTV

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CITY OF SAN MATEO
and design. CCTV inspection services are complete for the El Camino Real project, and Wilsey Ham is currently working on the detailed design process, with construction expected to start in Fiscal Year 2026-27. The current agreement includes enough budget for Wilsey Ham to complete the El Camino Real project through construction, but not enough for Wilsey Ham to begin work on Basin E. Originally, staff intended for each consultant to work on one Basin design/construction project. The proposed increase to the agreement of $1,250,000 would allow Wilsey Ham to complete efforts through the construction of Basin E in addition to their current El Camino Real project.

Freyer & Laureta was issued a task order to work on Basin D and has completed the detailed design phase. Construction is expected to begin at the beginning of Fiscal Year 2026-27. No increase to the agreement amount is required for Freyer & Laureta to complete the Basin D project.

No amendment is needed for Schaaf & Wheeler’s agreement.

Staff finds the proposed budget increases for CSG and Wilsey Ham reasonable given the required scope and expertise, and recommends extending the agreements with CSG, Wilsey Ham, and Freyer & Laureta by two years and six months to February 2029 to provide services through the completion of construction on their respective projects.

BUDGET IMPACT:

There are sufficient funds available in the CWP Annual Citywide Sanitary Sewer Rehabilitation Project (46s091) to fund the recommended amendments.

ENVIRONMENTAL DETERMINATION:

The underlying sewer rehabilitation projects, which the consultants are currently working on are each exempt from CEQA as an “existing facility,” because each project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – CSG Consultants Amendment No. 1
Att 2 – Wilsey Ham Amendment No. 1
Att 3 – Freyer & Laureta Amendment No. 1

STAFF CONTACT
Laura Webb, Senior Engineer
[email protected]
(650) 522-7322
Thomas Williams, Engineering Manager
[email protected]
(650) 522-7307

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Contract Amendment Page 1 of 2
CAO Approved June 2024
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0 AMENDMENT NO. 1 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND

CSG CONSULTANTS FOR

ON-CALL CONSULTING SERVICES FOR ANNUAL SANITARY SEWER REHABILITATION PROJECTS ($1,500,000 [Original Amount], $350,000 [Amendment No. 1]) This Amendment is made and entered into this day of _____________ by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and CSG CONSULTANTS ("CONSULTANT").

WHEREAS, on August 11, 2022, CITY and CONSULTANT entered into an agreement for professional consultant services (“Agreement”); and
WHEREAS, CITY and CONSULTANT wish to amend the Agreement to extend the term, and to increase the Agreement amount by $350,000, for a revised Agreement amount of $1,850,000.

NOW, THEREFORE, the Parties agree as follows:

1. Section 4, “Term,” of the Agreement is amended to read:
“This Agreement shall be valid for a duration of seven (7) years and six (6) months.

The services to be performed under this Agreement shall commence and be completed as set forth in Exhibit D.”

2. Section 5, “Payment,” of the Agreement is amended to read:
“Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONSULTANT a fee in an amount not to exceed $1,850,000, pursuant to rates stated in Exhibit B to this Agreement, attached and incorporated by reference.”

3. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

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Contract Amendment Page 2 of 2
CAO Approved June 2024
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0 IN WITNESS WHEREOF, CITY OF SAN MATEO and CSG CONSULTANTS have executed this Amendment on ___________________ .

CITY OF SAN MATEO CSG CONSULTANTS
Matt Fabry
Public Works Director
Date Cyrus Kianpour
Its Authorized Agent
President
Date

APPROVED AS TO FORM
Linh P. Nguyen
Assistant City Attorney
Date

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Contract Amendment Page 1 of 2
CAO Approved June 2024
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4 0
1 AMENDMENT NO. 1 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
WILSEY HAM DBA WHB ENGINEERS, INC. FOR

ON-CALL CONSULTING SERVICES FOR ANNUAL SANITARY SEWER REHABILITATION PROJECTS ($1,500,000 [Original Amount], $1,250,000 [Amendment No. 1]) This Amendment is made and entered into this day of _____________ by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and WILSEY HAM DBA WHB ENGINEERS, INC. ("CONSULTANT")
WHEREAS, on August 11, 2022, CITY and CONSULTANT entered into an agreement for professional consultant services (“Agreement”); and

WHEREAS, CITY and CONSULTANT wish to amend the Agreement to extend the term and to increase the Agreement total by $1,250,000, for a new Agreement total of $2,750,000.

NOW, THEREFORE, the Parties agree as follows:

1. Section 4, “Term,” of the Agreement is amended to read:
“This Agreement shall be valid for a duration of seven (7) years and six (6) months.

The services to be performed under this Agreement shall commence and be completed as set forth in Exhibit D.”

2. Section 5, “Payment,” of the Agreement is amended to read:
“Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONSULTANT a fee in an amount not to exceed $2,750,000, pursuant to rates stated in Exhibit B to this Agreement, attached and incorporated by reference.”

3. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

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Contract Amendment Page 2 of 2
CAO Approved June 2024
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4 0
1 IN WITNESS WHEREOF, CITY OF SAN MATEO and WILSEY HAM DBA WHB ENGINEERS, INC. have executed this Amendment on ___________________ .

CITY OF SAN MATEO WILSEY HAM DBA WHB
ENGINEERS, INC.

Matt Fabry
Public Works Director
Date Brandon Davis
Its Authorized Agent
Date

APPROVED AS TO FORM
Linh P. Nguyen
Assistant City Attorney
Date Jeff Wong, CFO Date

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Contract Amendment Page 1 of 2
CAO Approved June 2024
1 3
4 0
2 AMENDMENT NO. 1 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
FREYER & LAURETA, INC. FOR

ON-CALL CONSULTING SERVICES FOR ANNUAL SANITARY SEWER REHABILITATION PROJECTS ($1,500,000 [Original Amount], $0 [Amendment No. 1])
This Amendment is made and entered into this day of _____________ by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and FREYER & LAURETA INC. ("CONSULTANT")
WHEREAS, on August 11, 2022, CITY and CONSULTANT entered into an agreement for professional consultant services (“Agreement”); and
WHEREAS, CITY and CONSULTANT wish to amend the Agreement to extend the term of the Agreement.

NOW, THEREFORE, the Parties agree as follows:

1. Section 4, “Term,” of the Agreement is amended to read:
“This Agreement shall be valid for a duration of seven (7) years and six (6) months.

The services to be performed under this Agreement shall commence and be completed as set forth in Exhibit D.”

2. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

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Contract Amendment Page 2 of 2
CAO Approved June 2024
1 3
4 0
2 IN WITNESS WHEREOF, CITY OF SAN MATEO and FREYER & LAURETA, INC. have executed this Amendment on ___________________ .

CITY OF SAN MATEO FREYER & LAURETA, INC.

Matt Fabry
Public Works Director
Date Jeffrey Tarantino
Its Authorized Agent
Executive Vice President
Date

APPROVED AS TO FORM
Linh P. Nguyen
Assistant City Attorney
Date David Freyer
Vice President/Treasurer
Date

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 7 Section Name: CONSENT CALENDAR Account Number: 10-4662 File ID: 26-11196 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 01, 2026
SUBJECT:

Local Streets and Roads Maintenance and Rehabilitation, Project List Fiscal Year 2026-27 — Adoption RECOMMENDATION:

Adopt a Resolution to submit a list of projects proposed to be funded with the Road Maintenance and Rehabilitation Account, Senate Bill 1 funding, to the California Transportation Commission for Fiscal Year 2026-27.

BACKGROUND:

On April 28, 2017, the Governor signed Senate Bill 1 (SB1), which is known as the Road Repair and Accountability Act of 2017 to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system. SB1 increased per-gallon fuel excise taxes, diesel fuel sales taxes, and vehicle registration fees, and provided for inflationary adjustments to tax rates in future years.

Beginning November 1, 2017, the State Controller deposited various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this RMRA funding has been apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code Section 2032(h) for road maintenance, rehabilitation, and critical safety projects on the local streets and road system.

Prior to receiving an apportionment of RMRA funds from the State Controller in a fiscal year, a local agency must submit to the California Transportation Commission (CTC), by July 1st of each year, a list of projects proposed to be constructed with these funds. The estimated amount of the apportionment for the City for Fiscal Year 2026-27 is approximately $3,000,000 and is subject to fluctuations in actual tax and fee revenues.

The proposed project will rehabilitate street segments which are in poor condition identified as part of the City's pavement management program. The estimated useful life of the pavement treatment is on average about 20 years. The project is currently in planning/design with construction estimated to begin in July 2027. Staff recommends seeking RMRA fund apportionment for Fiscal Year 2026-27 for the proposed pavement rehabilitation and reconstruction projects which include the following street segments:

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CITY OF SAN MATEO
Delaware Street Charles Lane 16th Avenue Channel
Edinburgh Street Castilian Way Aragon Boulevard
Eldorado Street Poplar Avenue Cypress Avenue
Norfolk Street Flint Avenue Waters Park Drive
Norfolk Street Kehoe Avenue Dale Avenue
Oakwood Drive S End Crestwood Drive
Oakwood Drive Crestwood Drive End
O’Farrell Street 20th Avenue End
Parrott Court City Limit End
Pinewood Court Parkwood Drive End
Upon City Council approval of the project list, staff will submit the Council Resolution to the CTC as required.

BUDGET IMPACT:

According to the most recently available revenue estimates by the California League of Cities, the City of San Mateo is anticipated to receive an estimated amount of $3,000,000 from the RMRA for Fiscal Year 2026-27 toward street rehabilitation/reconstruction. These estimated allocations are appropriate for budgeting purposes but are subject to change when the Department of Finance releases updated revenue estimates with the Governor’s revision to the proposed State budget. As noted previously, actual revenues may vary based on total taxes and fees collected.

ENVIRONMENTAL DETERMINATION:

This action is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution

STAFF CONTACT
Jimmy Vo, Senior Engineer
[email protected]
(650) 522-7319

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1 3
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5 CITY OF SAN MATEO
RESOLUTION NO._______
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City, will receive an estimated $3 million in RMRA funding in Fiscal Year 2026-27 from SB 1; and
WHEREAS, this is the 10th year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the proposed project list is part of the City’s Pavement Management Program which is endorsed by the San Mateo City Council through budget adoption and public process; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate 16 roadway segments throughout the City this year;
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City streets and roads are in a good condition, however some of the street segments in poor condition have not been addressed and this revenue will help the City increase the overall quality of its roadway system and over the next decade will bring streets and roads into a better condition; and

WHEREAS, the SB 1 project list and overall investment in the City’s local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting- edge technology, materials and practices, will have significant positive co-benefits statewide.

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5 NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of San Mateo, State of California, as follows:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account revenues:

Project Title: Citywide Street Rehabilitation Package 7-B Project Description: Project work includes milling of pavement surface or removal of asphalt concrete and base, overlaying asphalt concrete or placement of asphalt concrete and base, upgrading curb access ramps, installation of pavement markings and striping, and other incidental work.

Project Location: The following locations identified are subject to be changed.

Street From To
27th Avenue Alameda de las Pulgas Hacienda Street
Alley 14 42nd Avenue 41st Avenue
Aragon Boulevard Alameda de las Pulgas Harvard Road
Buena Vista Avenue Alameda de las Pulgas Isabelle Avenue De Anza Boulevard SR 92 Polhemus Road
De Anza Court De Anza Boulevard End
Delaware Street Charles Lane 16th Avenue Channel
Edinburgh Street Castilian Way Aragon Boulevard
Eldorado Street Poplar Avenue Cypress Avenue
Norfolk Street Flint Avenue Waters Park Drive
Norfolk Street Kehoe Avenue Dale Avenue
Oakwood Drive S End Crestwood Drive
Oakwood Drive Crestwood Drive End
O’Farrell Street 20th Avenue End
Parrott Court City Limit End
Pinewood Court Parkwood Drive End
Estimated Project Schedule: Start (07/26) – Completion (10/27) based on the component being funded with RMRA funds.

Estimated Project Useful Life: The estimated average useful life of the Project is 20 years.

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 8 Section Name: CONSENT CALENDAR Account Number: 10-4679 File ID: 26-11197 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 01, 2026
SUBJECT:

Community Flood and Storm Protection Fee Increase for Fiscal Year 2026-27 — Adoption RECOMMENDATION:

Adopt a Resolution to increase the Community Flood and Storm Protection Fee by 3.0 percent to account for the annual Consumer Price Index (CPI) increase.

BACKGROUND:

The City of San Mateo operates and maintains a stormwater system that provides critical protection against flooding and helps safeguard local waterways from pollution. This complex system includes surface drains, underground pipes and conduits, pump stations, creeks and channels, and the Marina Lagoon. The system requires significant upgrades to address flood control capacity limitations, aging infrastructure, enhanced operations and maintenance needs, and compliance with state and federal mandates to reduce pollutants in stormwater runoff.

Prior to 2024, the system lacked a dedicated funding source, and available funds were insufficient to adequately maintain and modernize the drainage infrastructure, resulting in long-overdue improvements. On January 16, 2024, following a two- month balloting process, the City approved the dedicated Community Flood and Storm Protection Fee (Stormwater Fee).

The adopted resolution for the Stormwater Fee outlines future fee adjustments based on CPI. These adjustments require City Council approval each fiscal year and do not require additional voter approval. The fee adjustments are based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco Bay Area, as of each December, with a maximum allowable increase of 3.0 percent. The CPI increase from this December was 3.0 percent. Furthermore, any portion of the CPI above 3.0 percent is to be reserved as “Unused CPI” and may be applied in future years when the CPI is less than 3.0 percent. Since the CPI increase this year was at the cap, no unused CPI will be banked.

The following table shows the proposed changes in monthly fees for Fiscal Year 2026-27.

Land Use Category Monthly Fee
Residential Cost (per parcel) FY 25/26 FY 26/27
Small Under 0.11 acre 5.68 5.85
Medium 0.11 to 0.17 acre 8.19 8.44
Large 0.18 to 0.23 acre 10.16 10.46
Extra Large Over 0.23 acre 11.35 11.69
Condominium 1 Level acre 5.48 5.64
Condominium 2+ Levels acre 2.78 2.86

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CITY OF SAN MATEO
Non-Residential (per acre) FY 25/26 FY 26/27
Commercial / Industrial 102.91 106.00
Office / Apartment / Institutional 83.78 86.29
Institutional w/ Field 72.95 75.14
Park 5.66 5.83
Vacant (developed) 5.66 5.83
Open Space / Agricultural not charged
Funds from the Community Flood and Storm Protection Fee have been allocated to support operations and maintenance staff for the ongoing cleaning of storm catch basins, as well as critical capital repairs at locations identified by engineering and operations staff. Future revenues from this fee will continue to support these efforts, along with major capital improvements to be identified in the upcoming Storm Drain Master Plan update and Marina Lagoon dredging projects.

Staff recommends that the City Council adopt the attached Resolution to increase the Community Flood and Storm Protection Fee by 3.0 percent for all parcels citywide.

BUDGET IMPACT:

Revenues from Community Flood and Storm Protection Fee for Fiscal Year 2025-26 totaled $3,997,700. The proposed CPI increase of 3.0 percent will increase anticipated Fiscal Year 2026-27 revenue in the Storm Fund by approximately $119,000.

ENVIRONMENTAL DETERMINATION:

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution

STAFF CONTACT
Jimmy Vo, Engineering Manager
[email protected]
(650) 522-7319

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7 CITY OF SAN MATEO
RESOLUTION NO. ____ 2026
ADOPTING INCREASES TO THE COMMUNITY FLOOD AND STORM PROTECTION FEE FOR FISCAL YEAR 2026-27 WHEREAS, the City Council reviews the fees for the City of San Mateo’s (City) Community Flood and Storm Protection Fee (hereafter “Stormwater Fee”); and
WHEREAS, the City operates and maintains a stormwater system that provides vital services to protect neighborhoods from flooding and safeguard local waterways from pollution; and WHEREAS, the City’s stormwater system requires long-overdue upgrades, and, prior to 2024, the system lacked a dedicated funding source; and
WHEREAS, on January 16, 2024, the City Council approved the dedicated Community Flood and Storm Protection Fee (Stormwater Fee), which authorized Consumer Price Index increases for each fiscal year; and WHEREAS, for Fiscal Year 2026–27, the Stormwater Fee is subject to an annual adjustment based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco Bay Area, as of each December, with a maximum allowable increase of 3%; and
WHEREAS, for Fiscal Year 2026–27, the CPI increase from December was 3.0%.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:

1. Adoption of the Stormwater Fee rate for Fiscal Year 2026-27 is not a project subject to CEQA, because it consists of a government funding mechanism or other government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

2. The City Council hereby approves and adopts the Stormwater Fee Rate for Fiscal Year 2026-27, inclusive of the CPI increase of 3.0%, as follows:

Land Use Category Monthly Fee

Residential Cost (per parcel) FY 25/26 FY 26/27
Small Under 0.11 acre 5.68 5.85
Medium 0.11 to 0.17 acre 8.19 8.44
Large 0.18 to 0.23 acre 10.16 10.46
Extra Large Over 0.23 acre 11.35 11.69
Condominium 1 Level acre 5.48 5.64
Condominium 2+ Levels acre 2.78 2.86

Non-Residential (per acre) FY 25/26 FY 26/27
Commercial / Industrial 102.91 106.00
Office / Apartment / Institutional 83.78 86.29
Institutional w/ Field 72.95 75.14
Park 5.66 5.83
Vacant (developed) 5.66 5.83
Open Space / Agricultural not charged

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 9 Section Name: CONSENT CALENDAR Account Number: 18-6117 File ID: 26-11213 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: June 01, 2026
SUBJECT:

Parks and Recreation Bulk Printing and Mailing Services – Agreement RECOMMENDATION:

Approve a one-year bulk printing and mailing services agreement with FolgerGraphics, Inc. for an amount not to exceed $150,000; authorize up to two one-year extensions for up to $150,000 each year, for a total not to exceed amount of $450,000 over three years. Authorize the Parks and Recreation Director to execute change orders, extensions, or amendments.

BACKGROUND:

The Parks and Recreation Department uses mail house services for printing, postage, and distribution of messaging to the public. Messaging primarily includes quarterly activity guides, notification postcards, project updates, community meeting invitations, surveys, and any other large-scale announcements that surpass in-house staff’s capacity to produce them.

Printed communications are a key method to disseminate messaging to the public and have been identified by prior community surveys as an effective and accessible way for residents to receive information from the City.

The Department issued a Request for Proposals for bulk printing and mailing services in April 2026 and received six responses. AMS Printing, SENDnLINK, Commerce Printing Services, FolgerGraphics, Inc., Precise Mailing, and Bay Central Printing all provided complete responses, offered competitive pricing and quick turnaround times. FolgerGraphics, Inc. has experience producing and mailing quarterly activity guides and other notices as a vendor for the City’s Parks and Recreation Department. Staff selected FolgerGraphics, Inc. as the preferred vendor due to their competitive pricing, value, and experience. Staff recommends entering into a one-year agreement with FolgerGraphics, Inc. with the option to renew for two additional one-year extensions in an amount not to exceed $150,000 annually, for a total not to exceed amount of $450,000 over three years.

BUDGET IMPACT:

Funds have been budgeted in the 2026-27 operating budget, and this agenda report is for contract authority only.

ENVIRONMENTAL DETERMINATION:

This agreement is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Agreement

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CITY OF SAN MATEO

STAFF CONTACT
Suzette Silberman, Business Manager
[email protected]
650-522-7416

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AGREEMENT WITH FOLGERGRAPHICS, INC.

FOR BULK PRINTING AND MAILING SERVICES
FOR

THE CITY OF SAN MATEO PARKS AND RECREATION DEPARTMENT PROMOTIONAL MATERIALS

This Agreement, made and entered into th is day of____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and FOLGERGRAPHICS, INC., a California Corporation ("CONTRACTOR"), whose address is 21093 Forbes Ave, Hayward, CA 94545.

RECITALS:

A. CITY desires certain bulk printing a nd mailing services hereinafter described.

B. CITY desires to engage CO NTRACTOR to provide these bulk printing and mailing services by reason of its qualifications and experience for performing such services and CONTRACTOR has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES
.

The scope of services to be performed by CONTRACTOR under this Agreement is as described in Exhibit A to this Agreement, which is attached and incorporated by reference.

SECTION 2 - DUTIES OF CONTRACTOR

CONTRACTOR shall be responsible for the pr ofessional quality, technical accuracy and coordination of all work furnished by CONTRACTOR under this Agreement. CONTRACTOR shall, without additional compensation, correct or revise any errors or deficiencies in its work.

CONTRACTOR represents that it is qualifie d to furnish the services described under this Agreement.

CONTRACTOR shall be responsible for employing or engaging all persons necessary to perform the services of CONTRACTOR.

CONTRACTOR agrees to comply with the City ’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.

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SECTION 3 - DUTIES OF CITY

CITY shall provide pertinent information re garding its requirements for the project.

CITY shall examine documents submitted by CONT RACTOR and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONTRACTOR'S work.

SECTION 4 - TERM

The services to be performed under this Agr eement shall commence on July 1, 2026 and be completed on June 30, 2027.The Director of Parks and Recreation may Authorize up to two (2) one- year extensions by the CITY for a total maximum of three (3) years.

SECTION 5 - PAYMENT

Payment shall be made by CI TY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR a fee in an amount of $150,000, pursuant to rates stated in Exhibit B, attached and incorporated by reference, for services provided during the first year of this Agreement. Payment for each one-year option to extend will be up to $150,000 per year, for a total not to exceed the amount of three years.

SECTION 6 - TERMINATION

Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONTRACTOR. CONTRACTOR agrees to cease all work under this Agreement upon receipt of said written notice.

SECTION 7 - OWNERSHIP OF DOCUMENTS

All documents prepared by CO NTRACTOR in the performance of this Agreement are and shall be the property of CITY, whether the project for which they are made is executed or not.

SECTION 8 - CONFIDENTIALITY

All reports and documents prep ared by CONTRACTOR in connection with the performance of this Agreement are confidential until released by CITY to the public. CONTRACTOR shall not make any such documents or information available to any individual or organization not employed by CONTRACTOR or CITY without the written consent of CITY before any such release.

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SECTION 9 - INTEREST OF CONTRACTOR

CONTRACTOR covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement.

SECTION 10 - CONTRACTOR'S STATUS

It is expressly agreed that in the performanc e of the services required under this Agreement, CONTRACTOR shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONTRACTOR an agent or employee of CITY while providing services under this Agreement.

SECTION 11 - INDEMNITY

CONTRACTOR agrees to hold harmless and indemn ify CITY, its elected and appointed officials, employees, volunteers, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONTRACTOR’s performance of this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONTRACTOR agrees to defend City, its elected and appointed officials, employees, volunteers, and agents against any such claims. The CONTRACTOR’S duty to indemnify shall survive expiration or early termination of this Agreement.

SECTION 12 - INSURANCE

Contractor shall procure and maintain for the duration of the contract the insurance specified in Exhibit C to this Agreement.

SECTION 13 - NONASSIGNABILITY

Both parties hereto recognize that this Agreem ent is for the personal services of CONTRACTOR and cannot be transferred, assigned, or subcontracted by CONTRACTOR without the prior written consent of CITY.

SECTION 14 - RELIANCE UPON SKILL OF CONTRACTOR

It is mutually understood and agreed by and between the parties hereto that CONTRACTOR is skilled in the performance of the work agreed to be done under this Agreement and that CITY relies upon the skill of CONTRACTOR to do and perform the work in the most skillful manner, and CONTRACTOR agrees to thus perform the work. The acceptance of CONTRACTOR's work by CITY does not operate as a release of CONTRACTOR from said obligation.

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SECTION 15 - WAIVERS

The waiver by either party of any breach or viol ation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.

SECTION 16 - COSTS AND ATTORNEY FEES

Attorney fees in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of this Agreement. The above $5000 limit is the total of attorney fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this provision that neither party shall have to pay the other more than $5000 for attorney fees arising out of an action, or actions to enforce the provisions of this Agreement.

SECTION 17 - NON-DISCRIMINATION

CONTRACTOR warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONTRACTOR nor any of its subcontractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act.

SECTION 18 - MEDIATION

Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the State Mediation and Conciliation Service, or other agreed-upon service. The mediator shall be selected by a blind draw.

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SECTION 19 - LITIGATION

CONTRACTOR shall testify at CITY's request if litigation is brought against CITY in connection with CONTRACTOR's services under this Agreement. Unless the action is brought by CONTRACTOR, or is based upon CONTRACTOR's wrongdoing, CITY shall compensate CONTRACTOR for preparation for testimony, testimony, and travel at CONTRACTOR's standard hourly rates at the time of actual testimony.

SECTION 20 - NOTICES

All notices hereunder shall be given in writ ing and mailed, postage prepaid, addressed as follows:

To CITY: Joanne Magrini
City of San Mateo
330 W 20
th Ave
San Mateo, CA 94403

To CONTRACTOR: FolgerGraphics, Inc.

Attn: Kirk Folger
21093 Forbes Ave
Hayward, CA 94545

SECTION 21 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT

This document represents the entire and integrated agreement between CITY and CONTRACTOR and supersedes all prior negotiations, representations, and agreements, either written or oral.

This document may be ame nded only by written instrument, signed by both CITY and CONTRACTOR.

SECTION 22 - GOVERNING LAW AND VENUE

This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, CITY OF SAN MATEO and FolgerGraphics, Inc. have executed this Agreement the day and year first above written.

CITY OF SAN MATEO

CONTRACTOR

Joanne Magrini
Parks and Recreation Director

Date Kirk Folger, Vice President of
Sales
Its Authorized Agent
FolgerGraphics, Inc.

If a Corporation, can be either 1)
President or 2) Vice President plus
an additional co rporate officer
(i.e., Secretary, Treasurer) who
shall sign below.

Date

APPROVED AS TO FORM

ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)

Mazarin Vakharia
Assistant City Attorney
Date Tom Jansen
Vice President of Production

Date

Attachments:

Exhibit A: Scope of Services
Exhibit B: Payment Rates
Exhibit C: Insurance Requirements

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C o n t r a c t f o r S e r v i c e s P a g e 7 of 11 Rev 4/26

EXHIBIT A

SCOPE OF SERVICES
FolgerGraphics, Inc. will provide as-needed bulk printing and mailing services for the City of San Mateo Parks and Recreation Department, for a total contract amount not to exceed $150,000 each year of this Agreement.

Format and quality of mailers will vary and will be billed to respective project accounts. Rates and processing times will be consistent with the quote provided for proposed jobs:

Hypothetical
Jobs
Seasonal Activity
Guide (Winter,
Spring, Summer,
and Fall)
Seasonal Activity
Guide (Summer
Camps & Aquatics)
Mailer B Mailer C Mailer D Mailer E
Format
10-7/8 x 8-3/8
inches, w/ stapled
binding (saddle
stitched)
10-7/8 x 8-3/8
inches, w/ stapled
binding (saddle
stitched)
Dbl-sided,
1 pg 8.5x11
Envelope &
4 pgs of

8.5x11
Postcard

8.5 x 5.5
Postcard
6x9
Paper
80# gloss book for
the cover and 34#
68 Bright
Electrobrite for
the text (or of
equal quality).
65-80# gloss book
for the cover and
65-80# offset for
the text pages (or
of equal quality)
Pacesetter
100# Silk
Cover
Standard
paper
(20#)
Card stock Card stock
Average Page
Count
40 pages + 4 page
cover
40 pages + 4 page
cover
Colors
4-color on front
and back cover,
black + one PMS
color on
inside pages
4 - Color
Two sided,
Black + 3
colors
Black, two
sided
Color, two
sided
Color, two
sided
Quantity Approximately
51,000
Approximately
13,000 32,000 10,000 5,000 10,000
Postage
Customer requires
2 drops for
completed
product. #1- US
Post Office - sorted
bulk mail to all
residential "postal
customers" in
94401, 94402,
94403, and
specified carrier
routes of 94404.

Customer requires
2 drops for
completed
product. #1- US
Post Office - sorted
bulk mail for
"postal customers"
with children ages
5-17 covering zip
codes
94401, 94402,
94403, 94404.

Bulk Priority Priority Priority

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Must meet Post
Office packaging
requirements. #2 -
City of San Mateo
City Hall with blank
address panel;
quantity to be
determined by
staff.

Must meet Post
Office packaging
requirements. #2 -
City of San Mateo
City Hall with blank
address plate;
quantity to be
determined by
staff.

Other
Printer may need
to coordinate with
staff and selected
designer regarding
sizing, quality,
color, and other
design issues found
during the proof
process.

Printer may need
to coordinate with
staff and selected
designer regarding
sizing, quality,
color, and other
design issues found
during the proof
process.

Mailed
Folded,
stapled,
sealed,
mailed in
envelope
Mailed Mailed

SB 1383 Compliant Language
Provide language to ensure all printing and mailing products will be compliant under SB 1383.

Printing and mailing products must be composed of at least 30 percent post-consumer recycled content, if the fitness and quality of the product are equal to that of non-recycled items and available at no greater cost. Vendors must also plan to certify in writing the minimum percentage of postconsumer material in all printing and mailing products and provide records to the City’s recordkeeping designee of all paper products purchased on a schedule to be determined by the recordkeeping designee.

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EXHIBIT B

PAYMENT RATES

Job Type Quantity
Total Price for
Job
Postage
Advance/Service
Fees (Estimate) Price per Piece
Processing Time
(Print & Mail)
Seasonal Activity Guide
(Winter, Spring, Summer,
Fall) 51,000 $16,875.00 $10,782.03 $0.331 8-10 Days Seasonal Activity Guide
(Summer Camps &
Aquatics) 13,000 $10,325.00 $4,495.11 $0.794 8-10 Days Mailer B (Double Sided

8.5x11 and Bulk Mailing) 32,000 $4, 965.00 $10,316.80 $0.155 8-10 Days Mailer C (Envelope & 4 pgs
of 8.5x11 and Priority
Mailing) 10,000 $3,385.00 $4,056.00 $0.3385 8-10 Days Mailer D (Postcard 8.5 x 5.5
and Priority Mailing) 5,000 $1,095.00 $2,028.00 $0.219 5-10 Days Mailer E (Postcard 6x9 and
Priority Mailing) 10,000 $1,990.00 $4,056.00 $0.199 5-10 Days

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EXHIBIT C

INSURANCE REQUIREMENTS

MINIMUM SCOPE OF INSURANCE

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, includi ng products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall a pply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non- owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

If the contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the contractor.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its elected and appointed officials, employees, volunteers, and agents are to be covered as insureds on the auto policy for liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary insurance as respects the City, its elected and appointed officials, employees, volunteers, and agents. Any insurance or self-insurance maintained by the City, its elected and appointed officials, employees, volunteers, or agents shall be excess of the Contractor’s insurance and shall not contribute with it.

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Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance.

Contractor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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CITY OF SAN MATEO
6 5
0 5

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 10 Section Name: CONSENT CALENDAR Account Number: 20-5150 File ID: 26-11226 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Police Department
MEETING DATE: June 01, 2026
SUBJECT:

Edward Byrne 2025 Justice Assistance Grant Program — Approval RECOMMENDATION:

Adopt a Resolution to approve the submittal of an application to the United States Department of Justice, Bureau of Justice Assistance, for the Edward Byrne Memorial Justice Assistance Grant Program for the 2025 local solicitation in the amount of $22,261; and if awarded, appropriate funds to the Police Grants Budget Program and authorize the Chief of Police to execute all required documents.

BACKGROUND:

The Edward Byrne Memorial Justice Assistance Grant (JAG) program provides federal criminal justice funding to state and local jurisdictions to support a range of law enforcement programs. Applicants are limited to units of local government appearing on the 2025 JAG Allocations List. The procedure for allocating JAG funds is a formula based on population and crime statistics in combination with a minimum allocation to ensure each state receives an appropriate share. Sixty percent of funding is allocated to the states, and forty percent is allocated to local recipients. The City of San Mateo’s 2025 allocation is $22,261.

JAG has several primary purpose areas: law enforcement; prosecution and court; prevention and education; corrections and community corrections; drug treatment; planning, evaluation, and technology improvement; and crime victim and witness protection. Within these purpose areas, funds may be used for state and local initiatives, technical assistance, strategic planning, research and evaluation, data collection, training, personnel, equipment, forensic laboratories, supplies, contractual support, and criminal justice information systems.

The Police Department has proposed utilizing the funds to purchase law enforcement exterior carrier vests to enhance officer safety and operational effectiveness. The utilization of an exterior vest carrier is commonly viewed as a healthier alternative to the traditional duty belt for officers to carry required equipment. Exterior carriers provide improved weight distribution, reducing fatigue and risk of long term injury, which will improve the Police Department’s ability to maintain public safety, as well as the safety of our officers.

BUDGET IMPACT:

If the JAG grant is awarded, Council approval is requested to appropriate $22,261 into the Police Grant (Fund 200) budget.

The JAG grant requires no matching funds and will result in no impact to the General Fund.

ENVIRONMENTAL DETERMINATION:

This action is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)

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CITY OF SAN MATEO
6 5
0 5

NOTICE PROVIDED
All meeting noticing requirements were met. As required by JAG guidelines, copies of the grant application were made available to the City Council and for public review on the City’s website for 30 days.

ATTACHMENTS
Att 1 – Proposed Resolution

STAFF CONTACT
Ed Barberini, Chief of Police
[email protected]
(650) 522-7600
Tricia Toomey, Business Manager
[email protected]
(650) 522-7623

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1 3
4 4
3 CITY OF SAN MATEO
RESOLUTION NO. ____ (2026)

APPROVING AN APPLICATION TO THE UNITED STATES DEPARTMENT OF JUSTICE FOR THE EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM FOR FISCAL YEAR 2025

LOCAL SOLICITATION TO PURCHASE LAW ENFORCEMENT EXTERIOR VEST CARRIERS AND

AUTHORIZING AN APPROPRIATION OF FUNDS IF THE GRANT IS AWARDED WHEREAS, the US Department of Justice (DOJ), Edward Byrne Memorial Justice Assistance Grant (JAG) Program provides funding to state and local government to support projects that improve or enhance law enforcement programs; and WHEREAS, the City of San Mateo is eligible to receive an allocation of $22,261 from the JAG program for the 2025 solicitation; and
WHEREAS, the San Mateo Police Department has proposed to use its 2025 allocation to purchase law enforcement exterior vest carriers; and
WHEREAS, the grant application has been made available to the City Council and to the public for a period of 30 days preceding this meeting.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, FINDS and

RESOLVES
that:

1.This action is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment (Public Resources Code Section 21065.)

2.The Chief of Police or his designee, on behalf of the City of San Mateo, is authorized to submit an application for the Edward Byrne Memorial Justice Assistance Grant Program to the United States Department of Justice, Bureau of Justice Assistance, for $22,261 to purchase law enforcement exterior vest carriers – Funding Opportunity Number: O-BJA- 2025-172542.

3.The Chief of Police or his designee is authorized to accept and execute in the name of the City of San Mateo, the application and any documents required by the United States Department of Justice, Bureau of Justice Assistance, for the JAG program related to the acceptance of the grant funds.

4.The City Council authorizes, if said grant is awarded, an appropriation of $22,261 to the Police Grants fund.

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 11 Section Name: CONSENT CALENDAR Account Number: 18-6113 File ID: 26-11231 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: June 01, 2026
SUBJECT:

Recreation Special Event Support Services — Agreement
RECOMMENDATION:

Approve a one-year agreement for special event support services with Perry Thorwaldson, Sole Proprietor of Thor Audio Solutions for an amount not to exceed $108,940; authorize the Parks and Recreation Director to exercise up to two one- year extensions for up to $120,000 each year, for a total not to exceed amount of $348,940 over three years; establish a contingency reserve of $34,894 and authorize the Park and Recreation Director to execute the agreement, extensions and amendments in substantially the form presented.

BACKGROUND:

The Recreation Division Special Events Team contracts with various vendors to provide specialized equipment for events sponsored by the City. This equipment includes staging, tents, dance floors, and audio/visual support. City staff issued a formal request for proposal (RFP), which was posted on the City website and published in the San Mateo Daily Journal on Friday, March 20, 2026 and March 27, 2026. Perry Thorwaldson, Sole Proprietor of Thor Audio Solutions, was the sole bidder. The City has experience working with this vendor, and it has been positive. Perry Thorwaldson, Sole Proprietor of Thor Audio Solutions, has been providing quality services for the City of San Mateo's special events since 2016 and can provide all services requested in the RFP scope.

BUDGET IMPACT:

Funds have been budgeted in the FY 26-27operating budget, and this agenda report is for contract authority only.

ENVIRONMENTAL DETERMINATION:

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Agreement

STAFF CONTACT
Heather Murphy, Community Services Manager
[email protected]
(650) 522-7483

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0 AGREEMENT WITH PERRY THORWALDSON, SOLE PROPRIETOR OF THOR AUDIO SOLUTIONS

FOR EVENT EQUIPMENT SERVICES FOR

CITY OF SAN MATEO SPECIAL EVENTS
This Agreement, made and entered into this day of____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and Perry Thorwaldson, Sole Proprietor of Thor Audio Solutions ("CONTRACTOR"), whose address is 945 Berryessa Road, Suite 4, San Jose, CA 95133.

RECITALS:

A. CITY desires certain event equipment services hereinafter described.

B. CITY desires to engage CONTRACTOR to provide these event equipment services by reason of its qualifications and experience for performing such services and CONTRACTOR has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES
.

The scope of services to be performed by CONTRACTOR under this Agreement is as described in Exhibit A to this Agreement, which is attached and incorporated by reference.

SECTION 2 - DUTIES OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONTRACTOR under this Agreement. CONTRACTOR shall, without additional compensation, correct or revise any errors or deficiencies in its work.

CONTRACTOR represents that it is qualified to furnish the services described under this Agreement.

CONTRACTOR shall be responsible for employing or engaging all persons necessary to perform the services of CONTRACTOR.

CONTRACTOR agrees to comply with the City’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.

CONTRACTOR will provide all sound equipment necessary for a complete concert set-up as outlined in the Request for Proposal.

CONTRACTOR will be provided vehicular access to enter into park from the 5th Avenue entrance at determined date and time with City.

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0 CONTRACTOR will have venue available to performer’s personnel for set up a minimum of two hours prior to scheduled performance.

All set up must be completed no later than 30 minutes prior to scheduled performance.

CONTRACTOR will complete sound break down and be exited from area 2 hours after event ends.

CONTRACTOR is allowed to park in maintenance yard of park for the duration of the event.

CONTRACTOR must limit vehicles to asphalt pathways; vehicles not allowed on lawn or landscaped areas.

SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.

CITY shall examine documents submitted by CONTRACTOR and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONTRACTOR'S work.

Specific Event Duties for the Central Park Music Series:

CITY will keep grass cut short to allow dance floor to lie flat, and will not water 48 hours prior to event to prevent damage to lawn.

CITY will provide gate code into Central Park to CONTRACTOR.

SECTION 4 - TERM
The services to be performed under this Agreement shall commence on the executed date and will be completed on Thursday, December 31, 2026. The Director of Parks and Recreation may authorize up to two (2) one-year extensions by the City, for a total maximum of three (3) years.

SECTION 5 - PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR an amount not to exceed $108,940 pursuant to rates stated in Exhibit B, attached and incorporated by reference.

Payment for each one-year option will be an amount not to exceed $120,000 per year, for a total amount not to exceed of $348,940 for three years.

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Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONTRACTOR. CONTRACTOR agrees to cease all work under this Agreement upon receipt of said written notice.

SECTION 7 - OWNERSHIP OF DOCUMENTS
All documents prepared by CONTRACTOR in the performance of this Agreement are and shall be the property of CITY, whether the project for which they are made is executed or not.

SECTION 8 - CONFIDENTIALITY
All reports and documents prepared by CONTRACTOR in connection with the performance of this Agreement are confidential until released by CITY to the public. CONTRACTOR shall not make any such documents or information available to any individual or organization not employed by CONTRACTOR or CITY without the written consent of CITY before any such release.

SECTION 9 - INTEREST OF CONTRACTOR
CONTRACTOR covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement.

SECTION 10 - CONTRACTOR'S STATUS
It is expressly agreed that in the performance of the services required under this Agreement, CONTRACTOR shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONTRACTOR an agent or employee of CITY while providing services under this Agreement.

SECTION 11 - INDEMNITY
CONTRACTOR agrees to hold harmless and indemnify CITY, its elected and appointed officials, employees, volunteers, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONTRACTOR’s performance of this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONTRACTOR agrees to defend City, its elected and appointed officials, employees, volunteers, and agents against any such claims. The CONTRACTOR’S duty to indemnify shall survive expiration or early termination of this Agreement.

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Contractor shall procure and maintain for the duration of the contract the insurance specified in Exhibit C to this Agreement.

SECTION 13 - NONASSIGNABILITY
Both parties hereto recognize that this Agreement is for the personal services of CONTRACTOR and cannot be transferred, assigned, or subcontracted by CONTRACTOR without the prior written consent of CITY.

SECTION 14 - RELIANCE UPON SKILL OF CONTRACTOR
It is mutually understood and agreed by and between the parties hereto that CONTRACTOR is skilled in the performance of the work agreed to be done under this Agreement and that CITY relies upon the skill of CONTRACTOR to do and perform the work in the most skillful manner, and CONTRACTOR agrees to thus perform the work. The acceptance of CONTRACTOR's work by CITY does not operate as a release of CONTRACTOR from said obligation.

SECTION 15 - WAIVERS
The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.

SECTION 16 - COSTS AND ATTORNEY FEES
Attorney fees in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of this Agreement. The above $5000 limit is the total of attorney fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this provision that neither party shall have to pay the other more than $5000 for attorney fees arising out of an action, or actions to enforce the provisions of this Agreement.

SECTION 17 - NON-DISCRIMINATION
CONTRACTOR warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONTRACTOR nor any of its subcontractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act.

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Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the State Mediation and Conciliation Service, or other agreed-upon service. The mediator shall be selected by a blind draw.

SECTION 19 - LITIGATION
CONTRACTOR shall testify at CITY's request if litigation is brought against CITY in connection with CONTRACTOR's services under this Agreement. Unless the action is brought by CONTRACTOR, or is based upon CONTRACTOR's wrongdoing, CITY shall compensate CONTRACTOR for preparation for testimony, testimony, and travel at CONTRACTOR's standard hourly rates at the time of actual testimony.

SECTION 20 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:

To CITY: Joanne Magrini
Director Parks and Recreation
330 W. 20th Avenue
San Mateo, CA 94403
To CONTRACTOR: Thor Audio Solutions
Attn: Perry Thorwaldson
945 Berryessa Road Suite 4
San Jose, CA 95133
SECTION 21 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONTRACTOR and supersedes all prior negotiations, representations, and agreements, either written or oral.

This document may be amended only by written instrument, signed by both CITY and CONTRACTOR.

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This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.

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0 IN WITNESS WHEREOF, CITY OF SAN MATEO and Perry Thorwaldson, Sole Proprietor of Thor Audio Solutions, have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Joanne Magrini
Director Parks and Recreation
Date Perry Thorwaldson
President
Thor Audio Solutions
Date

APPROVED AS TO FORM
Mazarin Vakharia
Assistant City Attorney
Date
Attachments:

Exhibit A: Scope of Services
Exhibit B: Payment Rates
Exhibit C: Insurance Requirements

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SCOPE OF SERVICES
Event services could include but are not limited to:

Central Park Music Series (7 concerts total)
Thursdays in 2026: June 18, June 25*, July 9, July 16, July 23, July 30, August 6 6:00 p.m. - 8:00 p.m.

Fitzgerald Field, Central Park (50 E. 5th Avenue, San Mateo, CA 94401) *Concert will be from 5:30-6:30pm.
4th of July in the Park
Saturday, July 4, 2026
11:00 a.m. – 2:00 p.m.

Fitzgerald Field, Central Park (50 E. 5th Avenue, San Mateo, CA 94401) September Nights on B Street
Thursdays in 2026: September 10, September 17
6:00 p.m. – 8:00 p.m.

Pedestrian Mall, Downtown San Mateo (B Street between 1st & 3rd Avenue) Boos & Brews on B Street
Saturday, October 24, 2026
3:00 p.m. – 5:00 p.m.

Pedestrian Mall, Downtown San Mateo (B Street between 1st & 3rd Avenue) Central Park Playground Ribbon Cutting
Date: TBD
Time: TBD
Central Park (50 E. 5th Avenue, San Mateo, CA 94401)
Type of requirements will vary per event and will be decided by CITY.

Staging Requirements
Staging support services must meet the following minimum specifications:
Set up and take down of vendor owned 20’ x 20’ stage with elevated (minimum 3’) stage floor and skirting
Set up of vendor owned stair unit with safety railing on stage Set up of vendor provided rear backdrop truss with display capability for two (2) 20’ x 2.5’ onstage banners
ADA Ramp or elevator

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Set up and take down of vendor provided 10’ x 10’ tent booths with zip-in walls Includes one (1) 10’ x 10’ tent with zip in walls that serves as “backstage” dressing area for performers
Includes ten (10) 10’ x 10’ vendor provided tents to serve as food booths that comply with the County of San Mateo Health regulations
Dance Floor Requirements
Dance floor support services must meet the following minimum specifications:
One (1) 20’ x 25’ dance floor with minimum 1” subflooring One pedestrian pathway leading to the dance floor from crowd (approximately 95’ feet long) Audio/Visual Support Requirements
The audio system must be capable of producing clear, quality sound for an outdoor audience of up to 3,000 people while being respectful of residents located near the park/area.

Audio support services must meet the following minimum specifications:
Onsite sound engineer – same individual each week
Front of House mix
24-channel mixing equipment with full effects support
Eight (8) onstage monitors with a minimum of six (6) separate mixes All necessary audio cables and speaker cables

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PAYMENT RATES
Total cost may change based on needs of event and availability of items and staff. CITY may change, modify and adjust needs per event and services will be agreed upon CITY and CONTRACTOR up to 24 hours prior to the event.

Central Park Music Series $73,710.00
4th of July in the Park $10,530.00
September Nights on B Street $13,800.00
Boos & Brews on B Street $6,900.00
Central Park Playground Ribbon Cutting $4,000.00
Payment shall be made in the form of a check. Invoice shall be emailed to [email protected]. CITY will pay CONTRACTOR with 30 days of services rendered.

Check will be made payable to Thor Audio Solutions.

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INSURANCE REQUIREMENTS

MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:

2.Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $4,000,000 per accident for bodily injury and property damage.

If the contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the contractor.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

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Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 12 Section Name: CONSENT CALENDAR Account Number: 10-6121 File ID: 26-11138 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: June 1, 2026
SUBJECT:

Downtown Landscape Maintenance Services — Agreement
RECOMMENDATION:

Approve an agreement for a total of $415,260 over five years with Brightview Landscaping Services, Inc. for Downtown Landscaping Maintenance Services in the amount of $166,104 per year for two years, with up to three one-year extensions; and authorize the City Manager to execute the agreement substantially the form presented. Authorize a five- percent contingency amount of up to $4,153 per year for a total contingency not to exceed $20,765. Authorize the City Manager to execute all change orders, amendments, and extensions within the contingency amount.

BACKGROUND:

In pursuit of a clean, verdant, and pleasant downtown area, Parks and Landscape Division contracts planting, irrigation, and maintenance of more than 100 pots and planters, including replacement with seasonal flowers four times per year.

The Division solicited bids via the City's Bid Posting website and an advertisement on March 10,2026, in the local newspaper. Four bidders responded.

Valesco Landscaping: $141,556
Brightview Landscaping Services, Inc.: $166,104
K&K JL Services, Inc.: $218,256
New Image Landscape Company: $296,000
Valesco Landscaping’s bid did not meet two requirements. The bid specifications required each bidder to have a Contractors License for at least five years, which they did not meet. Velasco Landscaping also does not hold a Pesticide Application License.

Accordingly, staff recommends that Brightview Landscaping Services, Inc. be awarded the agreement as the lowest responsive and responsible bidder. This agreement would be for a minimum of 2 years, with three-1-year extensions, for a total amount of $415,260. Brightview Landscaping Services, Inc. has been a contractor with the City for many years and has demonstrated their ability to maintain the downtown in a clean, aesthetically pleasing, and healthy manner.

BUDGET IMPACT:

There are sufficient funds for this work in the operating budget. This agenda report is for contract authority only.

ENVIRONMENTAL DETERMINATION:

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CITY OF SAN MATEO
This downtown landscaping maintenance services agreement is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Agreement

STAFF CONTACT
Timothy Heartquist, Managing Arborist
[email protected]
(650) 522-7425

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2 AGREEMENT WITH BRIGHTVIEW LANDSCAPE SERVICES, INC

FOR LANDSCAPE MAINTENANCE SERVICES

FOR DOWNTOWN SAN MATEO
This Agreement, made and entered into this day of ____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and BRIGHTVIEW LANDSCAPE SERVICES, INC., a CORPORATION ("CONTRACTOR"), whose address is PO Box 31001-2563 Pasadena CA.

RECITALS:

A. CITY desires certain downtown landscape maintenance services hereinafter described.

B. CITY desires to engage CONTRACTOR to provide these downtown landscape maintenance services by reason of its qualifications and experience for performing such services and CONTRACTOR has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES
Proposer shall perform the work according to the specifications outlined in Exhibit A SECTION 2 - DUTIES OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONTRACTOR under this Agreement. CONTRACTOR shall, without additional compensation, correct or revise any errors or deficiencies in its work.

CONTRACTOR represents that it is qualified to furnish the services described under this Agreement.

CONTRACTOR shall be responsible for employing or engaging all persons necessary to perform the services of CONTRACTOR.

CONTRACTOR and his subcontractors shall comply with State’s Prevailing Wage Laws.

CONTRACTOR agrees to comply with the City’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.

CONTRACTOR or subcontractor shall not be qualified to bid on, be listed in a bid proposal, or engage in the performance of any contract for public work unless currently registered and qualified to perform public work pursuant to Section 1725.5 of the Labor Code. For the work performed for the

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2 City, the CONTRACTOR and his subcontractors shall pay the workers at the prevailing wage rate as determined by the California Department of Industrial Relations, for this locality. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.

CITY shall examine documents submitted by CONTRACTOR and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONTRACTOR's work. CONTRACTOR shall not be liable for any loss or damage to plant material resulting from state or local water regulations or mandates or CONTRACTOR’s compliance or good faith efforts to comply with state or local water regulations or mandates. CONTRACTOR shall not provide representations, warranties, or assurances as to the safety of chemical substances used while performing the services, provided that CONTRACTOR applies such substances properly and in accordance with applicable laws and regulations.

SECTION 4 - TERM
The services to be performed under this Agreement shall commence on July 1, 2026 and be completed on June 30, 2028. City Manager can execute up to three one-year extensions.

SECTION 5 - PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR in an amount not to exceed $166,104.00, a fee pursuant to rates stated in Exhibit B, attached and incorporated by reference.

City will retain from any payments due hereunder sufficient funds to discharge any delinquent accounts of Contractor for which liens have been or can be filed, and City may at any time pay therefrom for Contractor's account such amounts as are admittedly due thereon. Funds will be withheld for any work deemed by City's representative in charge as not meeting the requirements of this specification.

SECTION 6 – TERMINATION

1.Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONTRACTOR. CONTRACTOR agrees to cease all work under this Agreement upon receipt of said written notice. CONTRACTOR may, at its discretion, terminate this agreement upon expiration of ninety (120) days after written notice to that effect has been given to the CITY.”

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2 SECTION 7 - OWNERSHIP OF DOCUMENTS
All documents prepared by CONTRACTOR in the performance of this Agreement are and shall be the property of CITY, whether the project for which they are made is executed or not.

SECTION 11 - INDEMNITY
CONTRACTOR agrees to hold harmless and indemnify CITY, its elected and appointed officials, employees, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONTRACTOR’s performance of this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONTRACTOR agrees to defend City, its elected and appointed officials, employees, and agents against any such claims. The CONTRACTOR’S duty to indemnify shall survive expiration or early termination of this Agreement.

SECTION 12 - INSURANCE
Contractor shall procure and maintain for the duration of the contract the insurance specified in Exhibit C to this Agreement.

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2 SECTION 13 - NONASSIGNABILITY
Both parties hereto recognize that this Agreement is for the personal services of CONTRACTOR and cannot be transferred, assigned, or subcontracted by CONTRACTOR without the prior written consent of CITY.

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2 SECTION 18 - MEDIATION
Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the State Mediation and Conciliation Service, or other agreed-upon service. The mediator shall be selected by a blind draw.

SECTION 20 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:

To CITY: City of San Mateo
Attn: Tim Heartquist
Managing Arborist
330 W. 20th Avenue
San Mateo, CA 94401
To CONTRACTOR: Brightview Landscape Services, Inc.

Attn: Brandon Steene
7039 Commerce Circle, Suite B
Pleasanton, CA 94588
SECTION 21 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONTRACTOR and supersedes all prior negotiations, representations, and agreements, either written or oral.

This document may be amended only by written instrument, signed by both CITY and CONTRACTOR.

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2 SECTION 22 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.
[SIGNATURE PAGE FOLLOWS]

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2 IN WITNESS WHEREOF, CITY OF SAN MATEO and Brightview Landscape Services, Inc., have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Alex Khojikian
City Manager
Date Brandon Steene
Vice President
BrightView Landscape
Services, Inc.

Date

APPROVED AS TO FORM
Mazarin Vakharia
Assistant City Attorney
Date Melynda Rudolff
Regional Finance Manager
Brightview Landscape
Services, Inc.

Date
Attachments:

Exhibit A: Scope of Services
Exhibit B: Payment Rates
Exhibit C: Insurance Requirements
Exhibit D: Map
Exhibit E: IPM Policy
Exhibit F: Extraordinary Work

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2 EXHIBIT A

SCOPE OF SERVICES
General Work Specifications
The Proposer shall furnish all labor, equipment, materials, tools and supervision to perform landscape maintenance as described herein including, but not limited to, the following:
(a) Weed control and cultivation, mechanically and/or with chemicals; glyphosate is not permitted. (b) Fertilization once per year, minimum.
(c) Shrub trimming, pruning and training.
(d) Clearance pruning and staking of young trees (3 inch DBH or less) as needed. (e) Control of landscape plant pests and diseases.
(f) General litter pick up, refuse and debris removal from planters and landscape areas. (g) Irrigation system monitoring, maintenance and repair. (h) Hand watering planters.
(i) Hand watering of young street trees as needed.
(j) Hardscape cleaning, including graffiti on planters and pots. (k) Bedding plant (seasonal flowers) replacement (4 times per year) and maintenance in 91 pots. (l) Addition and replacement of potting soil as required to maintain proper drainage and plant health and keep pots filled to 1-3” below the rim.

Detailed Work Specifications
All work shall be performed in accordance with the highest landscape maintenance standard, as stated in the Detailed Work Specifications. Standards and frequencies may be modified from time to time as deemed necessary by the City for the proper maintenance of the sites.

These specifications are intended to cover all labor, material, standards of landscaping, and mechanical workmanship to be employed in the work called for in these specifications or reasonably implied by terms of same. Work or materials of a minor nature which may not be specifically mentioned, but which may be reasonably assumed as necessary for the completion of this work, shall be performed by the Proposer as if described in the specifications. 1)Disposal: The Proposer shall dispose of all cuttings, weeds, leaves, trash and other debris from the operation as work progresses, and shall pay all disposal fees. The City shall in no way be responsible for the disposal.
2)Records: Proposer shall keep accurate records concerning all of his employees or agents and within fifteen (15) days of the effective date of this Agreement, provide the City with names, addresses, and telephone numbers of employees to be called in case of emergency. Proposer shall keep accurate records of all pesticide use.
3)Pesticides:

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2 a) All pesticide operations, where required, shall be performed or supervised by a California State Licensed Pest Control Applicator through written recommendation by a California State licensed Pest Control Advisor. The Proposer shall be responsible for compliance with all Federal, State and local laws and regulations regarding pesticide usage. Proposer shall provide copies to the City of his/her license and registration of both of his/her Pest Control Advisors and Pest Control Operators licenses. The names and permit numbers will be supplied to the City at the beginning of Contract, and any changes to this information shall be forwarded within 24 hours of said change. Proposer shall submit a copy of a “Pesticide Use Summary” to the City on a monthly basis. Payment of monthly invoices will be withheld unless a Pesticide Use report is submitted. b) The Proposer shall not be permitted to store any pesticide within a City-owned facility without express written permission of the City representative.
c) Some pesticides are prohibited – See Exhibit E, IPM Policy. 4)Repairing Damaged Work:
a) The Proposer will report without delay any damage to City equipment or property and shall be held responsible for the replacement of any such damage caused by the Proposer’s act hereunder.

Watering, pesticide spraying and other maintenance specifications shall not be done at a time when it might damage parked cars or at times when activities in the Contract area might be inconvenienced or disrupted.
b) Repairs to the irrigation system resulting from damage by other than the Proposer’s operation (e.g., vandalism) shall be reported promptly to the Managing Arborist, or designee, together with an estimate of costs for correction of the condition. The Managing Arborist may authorize repair by the Proposer and the City will pay the Proposer for this work. c) The Proposer shall be responsible for the replacement of all plant materials, including trees, shrubs, ground cover and similar materials. The full cost of such replacement, including the cost of labor, shall be borne by the Proposer, except as provided in subsection “D” below. d) Replacement of plant materials damaged or destroyed by City forces, or as a result of an accident or vandalism, shall be reported promptly to the Tree Maintenance Specialist or Managing Arborist together with an estimate of costs for replacement. The Managing Arborist may authorize replacement by the Proposer, and the City will pay the Proposer for the cost of the replacement including the cost of labor.
5)Schedules:
a) Annual Schedule:
i) The Proposer shall provide an Annual Maintenance Schedule indicating the time frames when items of work shall be accomplished per the performance requirements. This maintenance schedule shall be a document which clearly states when required landscape maintenance practices will occur. Both the Proposer and the City should be able to refer to this schedule to determine when required maintenance shall occur.
ii) The Proposer shall complete the schedule for each facility in a manner that shall correspond to the weekly schedules.
iii) The Annual Schedule shall be submitted to the City for approval within fifteen (15) calendar days after the effective date of the Contract.

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2 iv) The Proposer shall submit revised schedules when actual performance differs substantially from planned performance.
v) Special events may necessitate changes or variations in scheduling. The Proposer shall adapt all schedules to the City’s requests. Scheduled annual events include, but are not limited to:
the Downtown Holiday period from Thanksgiving Day to New Year’s Day. b) Irrigation Controller Schedules:
i) Proposer shall provide irrigation controller schedules for each controller indicating locations, stations, and minutes per each station. These schedules should be updated monthly. Random, unscheduled irrigation test by City staff will be used to confirm irrigation system operation and scheduling. Payment of monthly invoice will be withheld unless an irrigation controller schedule along with the scheduled dates for the monthly irrigation testing is submitted. 6)Irrigation System Maintenance:
a) The Proposer shall maintain all irrigation systems in a professional, operable condition at all times. This includes but is not limited to controllers, back-flow devices, moisture sensors, manual and remote control valves, wiring, pipes, sprinkler heads, drip irrigation equipment, hose bibs, and quick couplers. The Proposer shall not be responsible for the water meter assembly except if Proposer’s operations cause damage to these items. b) Repair, replace or adjust all sprinkler heads to maintain proper and uniform water application.

The Proposer will adhere to all State and local regulations accordingly. c) Adjust water application to compensate for changes in weather. Proposer will be responsible for damages occurring due to underwatering or overwatering operations. d) Proposer shall turn off irrigation system controllers during periods of rain. Water runoff onto roadways or sidewalks is not permitted.
e) All sprinkler part replacements are to be made with original type material or better; the Managing Arborist shall approve all substitutes.
f) Repair or replacement of equipment damaged as a result of Proposer’s negligence shall be replaced at the Proposer’s expense.
g) Necessary irrigation repairs shall be made prior to the next irrigation cycle. h) Irrigation programming charts will be updated each month. i) Areas that require irrigation will have such accomplished no later than 7:30 a.m. j) Irrigation systems shall be thoroughly inspected by operating all control valves and checking for proper coverage, leaks, valve actuation, proper timing and other operational conditions. Such inspection shall be made at least once per month; however, the Proposer shall be responsible for the proper operation of the system at all times and shall provide for obvious repairs as they occur.
k) Repairs. All portions of existing facilities, including irrigation systems, which are damaged or altered in any way, as a result of the performance of work under these Specifications during the term of the Contract, shall be repaired and replaced in kind and in an approved manner. All work of this kind shall be performed by the Proposer at no cost to the City, and shall be as indicated by the City’s representative. Repairs to facilities shall be made immediately after

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2 damage or alteration occurs, unless otherwise instructed. A comprehensive testing and check of all irrigation systems shall be made approximately thirty (30) days prior to the end of the contract, and any repairs deemed the responsibility of the Proposer shall be made by the Proposer prior to the end of the Contract. If the Proposer does not make repairs to the satisfaction of the City, deductions shall be made from the Contract payment in the amount to cover the cost to eliminate the discrepancies, as determined by the Managing Arborist. l) Contractor must operate irrigation systems in compliance with any current CalWater restrictions relating to water conservation.
m) Maintenance required from ordinary normal use of irrigation systems is to be covered within the scope of the contract. The reference to “maintenance and repair” of irrigation systems is construed to mean any ordinary wear and damage to an irrigation component which is not an act “of God, vandalism, theft, civic disturbance or accident…” Examples of ordinary irrigation wear and tear are, but are not limited to, controller malfunctions, value malfunctions, occasional cracked irrigation pipes, occasional broken sprinkler heads, emitters, o-rings, solenoids, and valve diaphragms.
i) Examples of an act of God would be earthquake or storm damage. Vandalism or theft should be of an obvious nature so that a police report of the incident could be filed with the San Mateo Police Department. An accident, such as damage by a vehicle collision of a backflow device or valve box, should also be apparent with evidence of impact or by the nature of the damage.
7) Ground Cover Maintenance:
a) All ground cover areas shall be maintained in a trimmed and weed-free condition. b) Weeds shall be removed upon appearance. Weed removal shall be done on a weekly basis. A pre-emergent herbicide may be used where appropriate in shrub and ground cover beds to inhibit weed growth. Weeds not killed with herbicides shall be removed manually. The Proposer at his expense shall replace plants killed by weeds and chemicals, etc. c) Ground cover areas shall be fertilized once per year in April with 3-0-1 ratio commercial fertilizer, at a rate of 1 pound N per 1,000 square feet. Fertilizer shall be a complete fertilizer furnishing the required amount of nitrogen and other nutrients to keep ground cover, trees, shrubs and other plants in a healthy and vigorous growing condition. Applications shall be made at recommended rates. If the application of iron, zinc or other trace minerals is required to correct a specific soil deficiency, it shall also be applied as specified at the Proposer’s expense. d) Trim and edge as necessary to restrict growth from encroaching on sidewalks, curbs, turf areas, shrubs, roadways or other adjacent areas.
e) Irrigate as required to maintain adequate growth and reasonable appearance. f) Control pests, including insects and diseases, as necessary to maintain a healthy environment for plant growth. This includes rodents, snails and slugs which are impacting plant growth or appearance.
g) Bare ground cover areas shall be kept cultivated and raked of all debris. 8) Shrub, Vine, Flower and Tree Maintenance:

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2 a) Shrubs shall be maintained in a safe and reasonably trimmed appearance by proper shaping and pruning to promote the plant’s natural character.
b) Trim shrubs to maintain the size and shape specified by the Managing Arborist. c) Pruning shall be accomplished to maintain a “natural” appearance. d) Remove all dead, diseased or damaged branches back to a side branch. Do not leave branch stubs unless approved in advance.
e) Application of an iron chelate fertilizer or other micronutrients shall be made as needed throughout the year to maintain a healthy, vigorous growth and foliage. f) Irrigate as required to maintain adequate growth and appearance. g) All bare shrub bed areas shall be raked monthly to remove all litter and other debris. h) Growth of woody plants shall be encouraged except where it interferes with circulation, maintenance activities, roadways, drainage facilities, fence lines or other structures. Dead branches of plants shall be removed regularly.
i) Trim plant material regularly adjacent to curbs, sidewalks and roadways to provide for proper, unobstructed circulation.
j) Any paper, weeds, cans or other litter found in ground cover/shrub beds shall be removed on scheduled days.
k) Annual flowers (bedding plants) shall be cultivated, watered and weeded on a weekly basis.

Proposer shall change out bedding plants four times per year, using 4” pot or larger, container plants in all stand-alone pots. Bedding plants will be installed no later than November 1st, for the holiday shopping season. The November planting shall include a minimum of 40 flats of red and white cyclamen. Other color changes shall occur no later than March 1st, June 1st, and August 1st of each year. Proposer shall purchase and install a minimum of 80 flats (16, 4” pots per flat) of bedding plants 4 times per year at his/her expense, as part of this contract. Proposer must obtain approval from City on plant species prior to ordering them. l) Hand-watered planters. There are a series of raised stand-alone planters at various locations.

These have no water source available and need to be hand-watered by the Proposer on a regular schedule. The Proposer shall be responsible for transporting water to these locations using City water sources. Plant material lost due to improper hand-watering shall be replaced at the Proposer’s expense. Hand-watered planters may be relocated within the Downtown as required for other City projects. Proposers are required to water all planters within the downtown area. The current locations are as follows:
i) See Downtown Landscape Maintenance Locations Map – Exhibit D. 9) Tree Care:
a) Stake and support trees as necessary. Staking and guying shall be done in accordance with City standards.
b) All tree guys, ties and stakes shall be checked regularly to avoid girdling and damage. c) Proposer shall stake or otherwise support trees during inclement weather, and remove branches and other debris generated by such weather.

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2 d) Each site shall be inspected for dead or dying trees; broken, cracked or hanging branches; or other hazards. Immediately notify the Tree Maintenance Specialist if any of the above conditions exist.
e) Except for emergency removal, no tree or shrub shall be removed without prior direction or approval of the City. Trees and shrubs badly damaged and in need of replacement shall be brought to the attention of the Managing Arborist or Tree Maintenance Specialist. f) Water as required to maintaining proper and vigorous growth according to variety. g) Hand-water to establish recently planted trees.
h) Complete tree pruning will be accomplished by the City and is not a part of these contract provisions.

Maintenance Frequency Summary
The following maintenance frequencies indicated are taken from the contract documents in the special Provisions section. The summary indicated here is the minimum level of service required. The Proposer is required to maintain the areas per the contract specifications and at the minimum frequencies listed here.

Function Minimum Frequency
Litter Pick-Up Daily
Weeding Daily
Hand Watering Daily or as needed
Irrigation System Inspection Monthly
Controller Inspection Weekly
Pruning (shrubs) Monthly
Trimming (ground covers, vines, etc.) Monthly
Pesticide application As needed or directed by City
Fertilization Semi-annually
Shrub, vine, and ground cover inspection Weekly
Seasonal flower color planting (4” pots) Quarterly (November, March, June, August) -- End of EXHIBIT A: SCOPE OF SERVICE --

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PAYMENT RATES
A monthly payment of $6921.00 is to be made to Brightview Landscape Services, Inc., not to exceed $166,104, on satisfactory completion of work. Invoices shall be sent to [email protected] and [email protected].
-- End of EXHIBIT B: PAYMENT SCHEDULE --

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INSURANCE REQUIREMENTS

MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:

2.Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

If the contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the contractor.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its elected and appointed officials, employees, and agents are to be covered as insureds on the auto policy for liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary insurance as respects the City, its elected and appointed officials, employees, and agents. Any insurance or self- insurance maintained by the City, its elected and appointed officials, employees, or agents shall be excess of the Contractor’s insurance and shall not contribute with it.

Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Deductibles and Self-Insured Retentions

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2 Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

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MAP

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IPM POLICY
The City has an Integrated Pest Management (IPM) Policy. The City’s IPM policy strives to promote IPM strategies to improve water quality in local creeks and the Bay, independent of the policy, and minimize health hazards to people from pesticide exposure.

The service provider shall conform to City’s IPM Policy in the following manner:
1) Furnish all supervision, labor, materials, and equipment necessary to evaluate, monitor, and provide pest management services for City of San Mateo rights-of-way, turf, landscaping and other terrestrial vegetation resources.
2) Whenever feasible, utilize pest management techniques that employ least toxic chemicals and non- pesticide alternatives.
3) Using IPM strategies, control vegetation pests that include insects, diseases, slugs, snails, and rodents.
4) Control pests while minimizing human exposure, secondary poisoning to non-target animals and pesticide-related water pollution by adhering to the following conditions:
a) the following products may not be used for pest control:
i) copper containing products
ii) organophosphate products (e.g., diazinon, chlopyrifos, malathion, parathion) iii) carbamate products (e.g., carbaryl)
iv) pyrethroid products (e.g., allethrin, bifenthrin, beta-cyfluthrin, bioallethrin, cyfluthrin, cypermethrin, cyphenothrin, deltamethrin, esfenvalerate, etofenprox, fenpropathrin, gamma-cyhalothrin, imiprothrin, lambda-cyhalothrin, metofluthrin, permethrin, phenothrin, prallethrin, resmethrin, sumithrin (d-phenothrin), tau-fluvalinate, tefluthrin, tetramethrin, tralomethrin, cis-permethrin, and zeta-cypermethrin) v) fipronil
vi) clopyralid products
b) Emergency applications of restricted chemical pesticides can be authorized by the project manager by submitting a written recommendation from a Pest Control Advisor (PCA) for use of the particular chemical, and should describe why less toxic alternatives are not practical. 5) Pest management and pesticide use tracking and reporting. The following records will be kept and procedures followed while servicing these sites:
6)Inspection Report. Provide inspection and recommendation report to Project Manager or their designee after each site visit.
7)Pesticide Use Report. Provide monthly pesticide reporting information using the standard California Department of Pesticide Regulation form PR-ENF-060 or equivalent. Submit the pesticide use information to the City Project Manager with the monthly billing invoice. Any recommendations for restricted chemical use must also be included with the monthly report. 8) Qualifications.

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2 a) Service provider will be in compliance with all federal, state, and local pest control operator requirements and regulations and maintain current licenses. b) The City strongly encourages IPM certification. The following firms offer instruction and certification determined by the Regional Water Quality Control Board to satisfy standards of training for IPM:
i) Bay-Friendly Landscaping and Gardening Coalition. http://bayfriendlycoalition.org/ (1) This is not intended as an endorsement of any particular firm. Other firms may offer comparable training. The service providers should submit a copy of their IPM certification.
9) Ongoing IPM Training: The City encourages service providers to attend annual IPM trainings.

Service providers should submit documentation demonstrating their attendance at IPM trainings. -- End of EXHIBIT E: IPM POLICY --

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EXTRAORDINARY WORK
1) General:
a) New or unforeseen additional work will be classified as extra work and will be performed only upon approval by the Managing Arborist, or their designee, unless a condition exists wherein it appears that there is danger of injury to persons or damage of property. In seeking extra work approval, Proposer shall delineate costs related to how much of the job shall be labor/supervision and materials/parts, if any.
b) The City as a result of Acts of God, vandalism, theft, civic disturbances, or accidents may require the Proposer to perform extraordinary work.
c) Extraordinary work may also be required by the City in order to add new landscaping or to delete, modify, or renovate existing landscaping and/or irrigation system parts. d) Extraordinary work shall not interfere with the completion of the general maintenance work.

For large projects of $1,000 or more, an “Extra” crew, supervised by the Proposer, shall be used in order to keep the regular maintenance crew doing their scheduled work. 2) Process:
a) The Proposer shall provide in writing a cost estimate and timeline for extraordinary work described. The City shall approve all estimates in writing. The Proposer shall perform the necessary work and invoice the City for the work performed according to the City’s policies. 3) Payment:
a) Payment for extra work may be by written agreement between Proposer and City on a particular unit price, stipulated for extra work; or on a lump sum price basis. b) The City will pay for fully documented extra work based on an accumulation of costs established as follows:
i) Labor: The costs of labor will be the actual hours multiplied by the rate indicated in the Proposal Schedule. The Proposer is required to pay costs for wages prevailing locally for the craft or type of workers at the time the extra work is done, plus employer payments of payroll taxes, insurance, health and welfare, pension, vacation, apprenticeship funds, and other direct costs resulting from Federal, State and local laws. ii) Materials: The cost of materials shall be at invoice or lowest current price at which same materials are locally available, in the quantities involved plus tax, freight and delivery. A Material Invoice must be attached to the billing.

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2 iii) Tool and Equipment Rental: No payment will be made for the use of tools which have a replacement value of $100 or less, regardless of the ownership. The rates to be used in determining equipment rental costs shall not exceed listed rates prevailing locally at equipment rental agencies or distributors at the time the work is performed. iv) Markup:
(1) Work by Proposer: A fifteen percent (15%) markup shall be added to the Proposer’s costs and shall constitute the markup for all overhead and profits of labor, materials, equipment rental, and other items.
(2) Work by Sub-Contractor: When all or part of the extra work is performed by the sub- contractor, the markups established for the prime Proposer shall be applied to the sub- contractor’s actual costs of such work, to which a markup of five percent (5%) on the subcontracted portion of the extra work may be added by the prime Proposer, unless otherwise indicated in the Proposal Schedule.
c) Payment – General Invoices: Proposer, sub-contractor(s) and vendor invoices for materials, labor, and equipment shall be submitted with a request for payment as follows:
i) Labor: Names of workers, classification, hours worked, and rate of pay. ii) Material: Substantiating invoices shall describe and list the quantities of the materials used. iii) Equipment: Type of equipment, size, hours of operation, and loading and transportation, if applicable.
-- End of EXHIBIT F: EXTRAORDINARY WORK --

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 13 Section Name: CONSENT CALENDAR Account Number: 10-1311 File ID: 26-11274 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: June 01, 2026
SUBJECT:

City of San Mateo Opposing State Ballot Initiative No. 1983 25-0006A1 — Adoption RECOMMENDATION:

Adopt a Resolution opposing proposed statewide Initiative No. 1983 25-0006A1, submitted by the Howard Jarvis Taxpayers Association (HJTA) and qualified for the November 2026 statewide ballot, and authorize the City Manager to communicate the City’s opposition to the California Legislature, the Governor’s Office, the League of California Cities, and other appropriate stakeholders.

BACKGROUND:

The Howard Jarvis Taxpayers Association (HJTA) submitted proposed statewide Initiative 1983 25-0006 (Amendment No. 1), on July 30, 2025. The initiative qualified for the November 2026 statewide ballot on April 21, 2026, as Attorney General File No. 25-0006A1.

The measure would add Section 4.5 to Article XIII A of the California Constitution, imposing sweeping restrictions on local governments’ ability to levy taxes. If approved by voters, it would: (1) permanently eliminate enhanced real property transfer taxes adopted by charter cities, including San Mateo’s, and prohibit any non-ad valorem general tax upon any parcel or upon any person as an incident of real property ownership; (2) require a two-thirds supermajority vote for all local special taxes (subject only to narrow existing constitutional carve-outs that do not benefit San Mateo); and (3) invalidate existing taxes and local measures that do not comply with the new requirements by December 31 of the second year following the initiative’s enactment.

The City of San Mateo is a charter city that relies on locally generated revenue — including its Real Property Transfer Tax (RPTT) and voter-approved special taxes — to fund essential public services and a robust capital improvement program.

Adoption of this initiative would cause severe, irreversible fiscal harm to the City and would override the democratic decisions of San Mateo residents.

DISCUSSION:

Overview of the Initiative
The initiative proposes a new constitutional provision (Section 4.5 of Article XIII A) with the following core elements:
Section (b): No local government, including the electorate of a local government exercising the initiative power, may impose, extend, or increase any special tax without a two-thirds supermajority vote. o(The initiative preserves three narrow existing constitutional exceptions: Article XIII A, Section 4; Article XIII C, Section 2(d); and Article XIII D, Section 3(a)(2).

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oNone of these carve-outs apply to San Mateo’s existing or anticipated tax measures.) Section (c): No local government, including the electorate of a local government exercising the initiative power, may impose: (i) ad valorem taxes on real property (except as provided in section (3)(a)(1) of article XIII D); (ii) any non-ad valorem general tax upon any parcel of real property or upon any person as an incident of real property ownership; or (iii) any transaction tax, sales tax, documentary transfer tax, or other tax related to real property sales, transfers, documents, or recordings — except for the tax, and not exceeding the rate, specified in subdivisions (a) and (b) of Section 11911 of the Revenue and Taxation Code as it existed on January 1, 2025. oThis is a dual limitation: localities may only levy the specific tax instrument described in Section 11911, at a rate no higher than that section specifies. The rates specified in Section 11911 as of January 1, 2025 are $0.55 per $500 (or $1.10 per $1,000) of value — far below San Mateo’s current RPTT rate. oCritically, the prohibition on “any non-ad valorem general tax upon any parcel… as an incident of real property ownership” extends beyond transfer taxes and may sweep in parcel taxes and other property- related levies. The City will need to evaluate all existing taxes for potential exposure under this broader prohibition.
Section (d): Any noncompliant tax enacted prior to the initiative’s effective date becomes null and void on December 31 two years after enactment.
oThis applies to all taxes covered by Section (c) — including not only charter city transfer taxes such as San Mateo’s RPTT, but also any non-ad valorem parcel taxes or other property-related levies that do not comply with the new restrictions.
Section (e): Definitions broadly extend the measure’s reach to charter cities and all forms of local government, and the measure is to be “liberally construed” to effectuate its purposes. oNotably, Section (e) redefines “electorate” to include property owners entitled to vote under the authorizing statute as it existed on January 1, 2025.
oThis definition could affect how future tax measures are structured or challenged, as it may give property owners — beyond registered voters — legal standing to contest locally approved taxes.

Summary of Impacts on the City of San Mateo
The following table summarizes the effect of the initiative on current City tax authority:

Topic Current Law Under Initiative 25-0006
Real Property
Transfer Tax (RPTT)
Charter cities may set their own
RPTT rate above the standard
documentary tax (San Mateo:

0.5% / 1.5%), generating critical
capital improvement revenue.

Charter city transfer taxes permanently eliminated. The City would be capped at the rate specified in Revenue and
Taxation Code Section 11911 as it existed on January 1, 2025 ($0.55 per $500 of value, or approximately 0.11%), a fraction of San Mateo’s current RPTT rate. San Mateo would lose an estimated $10–15 million annually. Additionally, the broader prohibition on non-ad valorem taxes as an incident of real property ownership may expose other City levies to invalidation.

Special Tax Vote
Threshold
Simple majority via citizen
initiative, as upheld by recent
court rulings.

Two-thirds supermajority required for ALL special taxes — all pathways. Narrow existing constitutional exceptions (Art.

XIII C, § 2(d); Art. XIII D, § 3(a)(2)) are preserved but do not benefit San Mateo.

Existing Parcel Taxes
and Local Measures
Valid if approved by simple
majority under prior court
decisions.

Invalidated December 31 of second year after statewide
passage. Applies to transfer taxes and any other
noncompliant property-related levies. Estimated statewide

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Topic Current Law Under Initiative 25-0006
loss of approximately $300 million annually (pending formal LAO analysis of Amendment No. 1).

Local Democratic
Control
Local voters may set local tax
policy through initiative or
council action.

Statewide initiative overrides local voter-approved
measures. San Mateo Measure CC (approved 71.8% of
voters) would be invalidated.

Reasons for Opposition
Staff recommend that the City Council adopt a formal position of opposition to Initiative 1983 25-0006A1 for the following reasons:

1. Loss of Real Property Transfer Tax Revenue Critical to Capital Projects San Mateo’s Real Property Transfer Tax (RPTT) currently generates an estimated $10–15 million annually, revenue that directly funds the City’s Capital Improvement Program (CIP). The CIP finances essential public infrastructure investments including street and sidewalk repair, park improvements, stormwater system upgrades, facility maintenance and renovation, and public safety facility improvements. Under the initiative, the City’s enhanced RPTT rate would be permanently eliminated, and the City would be capped at the standard rate specified in subdivisions (a) and (b) of Section 11911 of the Revenue and Taxation Code as it existed on January 1, 2025 (approximately $0.55 per $500 of value) — a fraction of the current rate. Beyond the RPTT, the initiative’s prohibition on “any non-ad valorem general tax upon any parcel… as an incident of real property ownership” may also jeopardize other City levies tied to real property. The loss of these revenue streams would result in significant deferrals of capital projects, deterioration of public infrastructure, and increased long-term maintenance costs for the City.

2. Invalidation of Voter-Approved Measure CC
San Mateo voters approved Measure CC with 71.8% of the vote, reflecting strong community support for locally determined tax policy. The initiative would retroactively invalidate Measure CC by December 31 of the second year following passage, irrespective of the overwhelming voter mandate behind it. This retroactive elimination of a democratically enacted measure is contrary to principles of local self-governance and disrespects the will of San Mateo voters.

3. Erosion of Local Fiscal Autonomy and Charter City Authority As a charter city, San Mateo has long exercised authority over its local tax structure to meet community needs and fiscal obligations. The initiative expressly applies to charter cities, stripping them of this authority without providing any offsetting state revenue or funding mechanism. The measure would impose a one-size-fits-all statewide tax restriction that does not account for the significant variation in community needs, infrastructure conditions, and financial obligations across California’s diverse local governments.

4. Unprecedented Supermajority Requirement Severely Restricts Future Revenue Options By requiring a two-thirds supermajority for all special taxes — through all pathways, including the citizen initiative process — the measure imposes an extraordinarily high bar for any future local tax. This supermajority threshold has historically been very difficult to achieve and would effectively foreclose the City’s ability to respond to unforeseen fiscal emergencies, infrastructure needs, or community priorities through locally approved tax measures.

5. Statewide Harm to Public Services and Infrastructure

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Fiscal analyses, including estimates by the Legislative Analyst’s Office and independent fiscal analysts reviewing prior versions of the initiative, have projected that measures of this type could eliminate approximately $300 million or more in local tax revenue annually statewide. Staff recommends confirming the LAO’s formal fiscal analysis of Amendment No. 1 (25-0006A1) once published and updating this figure accordingly. Cities and counties across California rely on locally generated revenues to fund fire and police services, parks, libraries, housing programs, and public works. The initiative provides no replacement funding mechanism, meaning the elimination of these revenues would directly harm residents who depend on these services.

6. Undermines State Efforts to Address Housing and Infrastructure The initiative’s proponents argue that eliminating real property transfer taxes will stimulate housing production. However, independent academic research cited in the measure’s own text acknowledges that the relationship between transfer taxes and housing supply is complex. Eliminating local tax authority will reduce immediate funding to support new housing, including roads, water systems, parks, and public facilities. The net effect would likely harm, rather than help, the state’s housing and infrastructure objectives.

7. Overrides Local Democratic Decision-Making
The initiative would override local voter-approved tax measures enacted through democratic processes — including citizen initiatives — with a single statewide constitutional provision. This substitution of state-level constitutional change for local community decision-making undermines the fundamental principle that local governments are best positioned to understand and respond to their communities’ needs.

8. Legal Uncertainty and Administrative Complexity
The measure’s provisions are broadly written and will generate significant litigation. Terms such as “initiative power,” “special tax,” “general tax,” and the scope of retroactivity provisions are likely to be contested in court, creating years of legal uncertainty for local governments and their budgetary planning. The measure directs that it be “liberally construed” to effectuate its purposes, suggesting an intent toward expansive application that would further restrict local fiscal authority beyond what is apparent on the face of the text.

9. Legislative and Coalition Activity
The City’s state legislative consultant, California Public Policy Group (CPPG), reports that the California Legislature is engaging HJTA in negotiations toward a potential legislative resolution, likely advanced through the state budget process.

The League of California Cities (Cal Cities) and labor organizations are coalescing to oppose the measure. Staff recommend that the City formally align with these opposition efforts through adoption of this resolution.

Formal adoption of an opposition resolution will authorize the City Manager to:
• Share the City’s opposition position to the California Legislature, including the City’s state legislative delegation. • Submit the City’s position to Cal Cities and other relevant coalitions. • Direct CPPG to represent the City’s opposition in legislative advocacy activities. •Issue correspondence with the Governor’s Office and other appropriate state agencies.

BUDGET IMPACT:

There is no direct fiscal impact associated with adopting this resolution. Any advocacy activities associated with opposing the initiative will be absorbed within the existing City Manager’s Office and CPPG contract budget.

If Initiative 25-0006 is approved by voters, the City would face estimated annual revenue losses of $10–15 million from the elimination of its enhanced Real Property Transfer Tax rate alone, with additional losses from invalidation of other

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noncompliant taxes. These losses would have a material adverse impact on the City’s Capital Improvement Program and General Fund.

ENVIRONMENTAL DETERMINATION:

This item is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution Opposing Initiative 25-0006 Att 2 – Draft Letter to the Governor Opposing State Ballot Initiative No. 1983 25-0006A1

STAFF CONTACT
Zachary Reda, Senior Management Analyst
[email protected]
(650) 435-0823

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7 CITY OF SAN MATEO
RESOLUTION NO. _____ (2026)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MATEO OPPOSING PROPOSED STATEWIDE BALLOT MEASURE NO. 1983 (INITIATIVE 25-0006A1)
WHEREAS, starting with Proposition 13 in 1978, California voters have enacted a series of statewide measures to protect taxpayers and limit property-related taxes, and those protections have formed the foundation of local government fiscal planning for decades; and WHEREAS, the Howard Jarvis Taxpayers Association submitted proposed statewide Initiative 25-0006 (Amendment No. 1), to the California Attorney General on July 30, 2025, assigned Attorney General File No. 25- 0006A1; and
WHEREAS, the initiative qualified for the November 2026 statewide ballot on April 21, 2026, and has been assigned Ballot Measure No. 1983; and
WHEREAS, if approved by voters, the initiative would add Section 4.5 to Article XIII A of the California Constitution, imposing sweeping restrictions on the authority of all local governments, including charter cities, to levy and maintain taxes; and
WHEREAS, the City of San Mateo is a charter city that currently levies a Real Property Transfer Tax (RPTT) at rates established under its charter authority, generating an estimated $10 to $15 million annually in revenue that directly funds the City’s Capital Improvement Program, including critical investments in streets, sidewalks, parks, stormwater systems, and public facilities; and WHEREAS, San Mateo voters approved Measure CC with 71.8% of the vote, reflecting an overwhelming community mandate for locally determined tax policy; the initiative would retroactively invalidate Measure CC by December 31 of the second year following the initiative’s enactment, disregarding the democratic will of San Mateo residents; and
WHEREAS, the initiative would permanently eliminate the City’s enhanced RPTT rate and limit the City to the standard documentary transfer tax split of 0.055% specified in Section 11911 of the Revenue and Taxation Code as of January 1, 2025, resulting in the loss of tens of millions of dollars in capital project funding over the coming years; and
WHEREAS, the initiative would, by its terms, cause the invalidation of any local tax enacted prior to its effective date that does not comply with its requirements, including parcel taxes and other voter-approved measures, resulting in an estimated loss of approximately $300 million annually in local tax revenues statewide; and

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7 WHEREAS, the initiative would require a two-thirds supermajority vote for all local special taxes through every pathway, including the citizen initiative process, eliminating the City’s ability to respond to future fiscal emergencies, infrastructure needs, or community priorities through locally approved tax measures; and WHEREAS, the initiative would apply to all forms of local government including charter cities, stripping San Mateo of fiscal authority it has exercised for decades without providing any replacement funding or offsetting state revenues to compensate for the resulting loss of services and infrastructure investment; and WHEREAS, the initiative’s broadly written provisions, including its instruction that it be “liberally construed” to effectuate its purposes, will generate significant legal uncertainty and litigation that will further impair local governments’ ability to plan and budget effectively; and WHEREAS, the League of California Cities, labor organizations, and a broad coalition of local governments across California have joined efforts to oppose the measure and to negotiate a legislative resolution that preserves essential local tax authority; and WHEREAS, the City Council finds that the initiative threatens the fiscal stability, infrastructure investment capacity, and democratic self-governance of the City of San Mateo, and that formal opposition is in the best interests of the City and its residents.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:

1. The proposed action is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).).

2. The City Council of the City of San Mateo hereby formally opposes proposed statewide Ballot Measure No. 1983 (25-0006A1), which is proposed for the November 2026 statewide ballot.

3. The City Council directs the City Manager to transmit this Resolution to the Governor of the State of California, the California State Legislature, the City’s state legislative delegation including Senator Josh Becker and Assemblymember Diane Papan, the League of California Cities, and any other appropriate stakeholders.

4. The City Manager is authorized to take all appropriate lawful actions to advance the City’s opposition to Ballot Measure No. 1983 (25-0006A1), including participating in coalition advocacy efforts, providing public testimony, and directing the City’s legislative consultant to represent the City’s position in legislative and political proceedings.

5. This resolution shall take effect immediately upon adoption.

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City of San Mateo | 330 W. 20th Avenue, San Mateo, CA 94403 | www.cityofsanmateo.org Letterhead
Date
The Honorable Gavin Newsom
Governor of California
State Capitol, Suite 1173
Sacramento, CA 95814
Re: Resolution of the City of San Mateo in Opposition to Proposed Statewide Initiative No. 1983 (25- 0006A1) – Local Taxpayer Protection Act to Save Proposition 13 Dear Governor Newsom:

On June 1, 2026, the San Mateo City Council adopted a formal resolution in opposition to proposed statewide Initiative No. 1983 (Attorney General File No. 25-0006A1), the “Local Taxpayer Protection Act to Save Proposition 13” (Version 3, Amendment No. 1), submitted by the Howard Jarvis Taxpayers Association (HJTA) and qualified for the November 2026 statewide ballot on April 21, 2026. We write to communicate our opposition and to respectfully urge your administration to oppose this measure.

Background
The initiative would add Section 4.5 to Article XIII A of the California Constitution, imposing sweeping and permanent restrictions on the authority of local governments, including charter cities such as San Mateo, to levy taxes. Its key provisions would: (1) require a two-thirds supermajority vote for all local special taxes, through all pathways including the citizen initiative process; (2) permanently cap real property transfer taxes at the rate specified in subdivisions (a) and (b) of Section 11911 of the Revenue and Taxation Code as it existed on January 1, 2025, and further prohibit any non-ad valorem general tax upon any parcel or upon any person as an incident of real property ownership; and (3) retroactively invalidate all noncompliant taxes, including those previously approved by local voters, by December 31 of the second year following enactment. The measure expressly applies to charter cities and directs that its provisions be “liberally construed” to effectuate its purposes.

Fiscal Harm to the City of San Mateo
The City of San Mateo relies on its Real Property Transfer Tax (RPTT) to generate an estimated $10–15 million annually, revenue that directly funds our Capital Improvement Program (CIP). The CIP finances critical public infrastructure: street and sidewalk repair, park improvements, stormwater system upgrades, facility maintenance and renovation, and public safety facility improvements. Under the initiative, San Mateo’s enhanced charter city RPTT rate would be permanently eliminated, with the City capped at the Section 11911 rate of approximately $0.55 per $500 of value, which is a fraction of the current rate, resulting in an estimated annual revenue loss of $10–15 million from the RPTT alone.

The initiative’s reach extends further still. Its prohibition on “any non-ad valorem general tax upon any parcel of real property or upon any person as an incident of real property ownership” is broadly written and may jeopardize parcel taxes and other City levies tied to real property, beyond the RPTT. The measure’s directive for liberal interpretation suggests an expansive application that would restrict local

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City of San Mateo | 330 W. 20th Avenue, San Mateo, CA 94403 | www.cityofsanmateo.org fiscal authority beyond what is apparent on the face of the text, and is expected to generate years of litigation and budgetary uncertainty for local governments statewide.

Retroactive Invalidation of Voter-Approved Measures
San Mateo voters approved Measure CC with 71.8% of the vote, reflecting an overwhelming community mandate for locally determined tax policy. The initiative’s retroactivity provisions would nullify Measure CC by December 31 of the second year following passage, irrespective of the democratic process that produced it. This retroactive elimination of a voter-approved measure is fundamentally contrary to principles of local self-governance and disregards the will of San Mateo’s residents.

Statewide Impact
Fiscal analyses, including estimates by the Legislative Analyst’s Office and independent fiscal analysts reviewing prior versions of this initiative, have projected that measures of this type could eliminate $300 million or more in local tax revenue annually statewide. Cities and counties across California depend on these revenues to fund fire and police services, parks, libraries, housing programs, and public works. The initiative provides no replacement funding mechanism. The net result would be significant, irreversible harm to public services and infrastructure across the state at a time when California’s communities can least afford it.

We also note that the initiative’s stated goal of stimulating housing production by eliminating transfer taxes is contradicted by the reduction in local revenue available to fund housing-enabling infrastructure like roads, water systems, parks, and public facilities that new development requires. The measure would undermine, rather than advance, the state’s housing and infrastructure objectives.

Request for Action
The City of San Mateo respectfully urges your administration to:

1. Formally oppose Initiative No. 1983 (25-0006A1) and communicate that opposition to the California electorate;

2. Support legislative efforts to address the underlying policy concerns raised by the initiative’s proponents through negotiated alternatives that protect local fiscal authority; and

3. Work with the League of California Cities, the California State Association of Counties, and other local government stakeholders to build a coordinated statewide opposition effort.

San Mateo is a proud charter city with a long history of responsible, community-driven governance. We are committed to working constructively with the state to address shared challenges. We ask only that our residents’ democratic decisions be respected and that our ability to fund the services our community depends upon be preserved. We welcome the opportunity to discuss this matter further and are available at your convenience.

Respectfully submitted,

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City of San Mateo | 330 W. 20th Avenue, San Mateo, CA 94403 | www.cityofsanmateo.org Adam Loraine
Mayor, City of San Mateo
On Behalf of the San Mateo City Council
Alex Khojikian
City Manager, City of San Mateo
cc: Members of the San Mateo City Council
Senator Josh Becker, District 13
Assemblymember Diane Papan, District 21
League of California Cities

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 14 Section Name: CONSENT CALENDAR Account Number: 10-1511 File ID: 26-11286 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: June 01, 2026
SUBJECT:

LGBTQIA+ Progress Pride Flag Display at City Hall – Adoption RECOMMENDATION:

Adopt a Resolution to direct that the LGBTQIA+ Progress Pride Flag be flown in recognition of Pride Month Pursuant to the City's Flag Policy beginning June 2, 2026, and continuing through June 30, 2026.

BACKGROUND:

On June 3, 2014, the San Mateo County Board of Supervisors unanimously adopted a resolution establishing the Lesbian, Gay, Bisexual, Transgender, Queer, Intersex, and Asexual (LGBTQIA+) Commission, the first county or city-level commission in California dedicated to addressing the needs of the LGBTQIA+ community. The Commission’s mission is to cultivate San Mateo County as a welcoming, affirming, and safe environment where its lesbian, gay, bisexual, transgender, queer, intersex, asexual, and gender expansive community members can thrive. In 2020, the Commission launched its Pride Month Visibility Campaign, encouraging all cities and communities in San Mateo County to recognize and support Pride Month each June. Since 2021, all 20 cities within the county, including the City of San Mateo, have participated by issuing proclamations and raising the Pride Flag. To continue the City’s commitment to promoting diversity and inclusion, staff recommends that the City Council adopt the attached Resolution authorizing the display of the LGBTQIA+ Progress Pride Flag during the month of June, in accordance with the City Hall Flag Display Policy.

BUDGET IMPACT:

There is no budgetary impact associated with the adoption of the attached Resolution.

ENVIRONMENTAL DETERMINATION:

This proposed resolution is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution

STAFF CONTACT
Martin McTaggart, City Clerk
[email protected]
(650) 522-7042

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CITY OF SAN MATEO
RESOLUTION NO. ____ 2026
DIRECTION THAT THE LGBTQIA+ PROGRESS PRIDE FLAG BE FLOWN FROM JUNE 2, 2026 THROUGH JUNE 30, 2026 IN RECOGNITION OF PRIDE MONTH PURSUANT TO THE CITY OF SAN MATEO’S FLAG POLICY WHEREAS, the City of San Mateo’s Flag Policy directs that the Flag of the United States of America together with the Flag of the State of California shall be displayed on exterior flag poles at major City facilities, including the flagpole at City Hall; and
WHEREAS, the City’s flagpoles are not intended to serve as a forum of free expression by the public; and WHEREAS, flags other than the Flag of the United States of America, the Flag of the State of California or other governmental flag shall only be displayed upon approval by the City Council of the City of San Mateo by adoption of a resolution; and
WHEREAS, the City of San Mateo adopted the Flag Policy on September 3, 2024; and WHEREAS, in 2020, the San Mateo County LGBTQIA+ Commission initiated a Pride Month Visibility Campaign and invited all twenty (20) cities in San Mateo County to raise the Pride Flag in the month of June; and WHEREAS, in 2026, the City Council wishes to express its support for the LGBTQIA+ community and join the County of San Mateo to observe Pride Month with raising of a Progress Pride Flag to honor the history of the LGBTQIA+ movement and to support the rights of all citizens to experience equality and freedom from discrimination.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:

1. The proposed Resolution is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

2. The City Council hereby directs that the LGBTQIA+ Progress Pride Flag be flown beginning June 2, 2026 and continuing through June 30, 2026 on the exterior flagpole at City Hall in addition to the regularly flown flags pursuant to the City’s Flag Policy.

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 15 Section Name: CONSENT CALENDAR Account Number: 10-1511 File ID: 26-11299 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: June 01, 2026
SUBJECT:
445 S. B Street (Bespoke) - New Mixed-Use Development — Ordinance Adoption RECOMMENDATION:

Adopt an Ordinance to approve Development Agreement (DA) associated with the construction a new mixed-use development totaling 239,628 square feet and consisting of one seven-story, 76,072 square-foot affordable housing building and one six-story, 162,926 square-foot office/commercial building located at 445 South B Street (“Project”).

BACKGROUND:

On May 18, 2026, the City Council introduced an Ordinance to approve the Development Agreement (DA) associated with the proposed mixed-use development at 445 South B Street. During the meeting, the City Council reviewed the project and provided feedback prior to introducing the Ordinance.

The Project includes a total of 239,628 square feet, consisting of one seven-story, 76,702-square-foot affordable housing building and one six-story, 162,926-square-foot office/commercial building.

If adopted, the Ordinance will become effective 30 days after adoption.

BUDGET IMPACT:

There is no budget impact associated with adoption of the Ordinance. The fiscal impacts of approving the Project are identified in the May 18, 2026 staff report.

ENVIRONMENTAL DETERMINATION:

In accordance with CEQA, an Initial Study and Mitigated Negative Declaration (IS/MND) were prepared to assess the Project’s environmental impact. The IS/MND concluded that the Project would not have significant effects on the environment with implementation of mitigation measures. The Project’s Mitigation Monitoring and Reporting Program (MMRP) was included in the Project approval resolution. The mitigation measures were also included as conditions of approval. On May 18, 2026, the IS/MND was adopted by the City Council, and the associated staff report contains additional information relating to environmental review of the Project.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Draft Ordinance – Development Agreement
Exhibit A - Development Agreement

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STAFF CONTACT
Chantal Eaton, Deputy City Clerk
[email protected]
(650) 522-7044

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CITY OF SAN MATEO
DRAFT ORDINANCE NO. _____(2026)

APPROVING A DEVELOPMENT AGREEMENT FOR
445 SOUTH B. STREET, “BESPOKE” MIXED USE DEVELOPMENT
(PA-2023-012)

WHEREAS, on January 4, 2021, the City Council approved Resolution No. 3 (2021) declaring the City-owned parking lot at East 4th Avenue and South Railroad Avenue as “surplus land” and subsequently released a Notice of Surplus Lands Availability to all housing developers that have registered with the State Department of Housing and Community Development (HCD); and

WHEREAS, on April 19, 202 1, the City received four proposals for the acquisition and development of Talbot's Lot, including a proposal from the three-party Development Team composed of Prometheus Real Estate Group, Harvest Properties, and Alta Housing; and

WHEREAS, on October 4, 2021, the City Council approved the City entering into an Exclusive Negotiating Agreement (ENA) for the redevelopment of this City-owned surface parking lot located at 4th and South Railroad Avenues, with amendments to the ENA approving extensions to July 14, 2026; and

WHEREAS, DTSM Talbots Ventures, LLC, (herein referred to as the “Applicant”) submitted a planning application (PA-2023-012) on February 24, 2023 associated with the construction of a new mixed -use development totaling 239,628 square feet and consisting of one seven -story affordable housing building approximately 76,072 square feet in area and one six -story building totaling 162,926 square f eet of office/commercial area located at 445 South B Street (collectively referred to as “Project”) in the City;

WHEREAS, the Applicant has requested a Development Agreement with the City (the “Agreement”); and

WHEREAS, the applicant wishes assurance that it may proceed with the Project under the laws, regulations, and policies as specified in the Agreement, in effect on the date of the approval; and

WHEREAS, the state legislature has authorized cities to enter into Development Agreements in order to provide assurance to developers that they may proceed with projects in reliance on existing laws, regulations, and policies; and

WHEREAS, the City, in Resolution No. 120 (1990), has adopted procedures for reviewing and entering into such Development Agreements; and

WHEREAS, the Planning Commission considered the application on April 28, 2026, and recommended adoption of the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Project (PA-2023-012); and

WHEREAS, the Planning Commission recommended approval of the construction of a new mixed-use development consisting of two new buildings, a subterrain parking garage, landscaping, roadway and other public improvements and common areas, subject to the Findings for Approval and Conditions of Approval; and

WHEREAS, the City Council held a duly noticed public hearing on __________, 2026, at which time all public comments were considered.

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NOW, THEREFORE BE IT RESOLVED, THAT THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, FINDS THAT:

1. The Council finds that the environmental impacts of the Agreement were analyzed in the Mitigated Negative Declaration, before approving the Agreement, as included in City Council Resolution No. ______.

2. In accordance with Government Code section 65867.5 (b), the Agreement is consistent with the City’s General Plan, Downtown Area Plan, Citywide Pedestrian Master Plan, and Bicycle Master Plan, for the reasons set forth in the Findings for Approval, as included in City Council Resolution No. ___ attached in the Administrative Report accompanying this Ordinance, and

3. The Agreement is compatible with the requirements of the City’s Zoning Ordinance for the reasons set forth in the Findings for Approval, as included in City Council Resolution N o. ___ attached in the Administrative Report accompanying this Ordinance, and

4. For the reasons set forth in the Administrative Report accompanying this Ordinance, the Agreement provides substantial public benefits to persons residing or owning property outside the boundaries of the Project, beyond the exactions for public benefits required in the normal development review process under federal, state, or local law.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAN MATEO ORDAINS AS FOLLOWS:

Section 1. The Council approves the Agreement attached as Exhibit A to this Ordinance and authorizes the City Manager to execute the Agreement.

Section 2. A Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program (MMRP) were prepared for this project in accordance with the provisions of C alifornia Environmental Quality Act (CEQA) and adopted by the City Council on _________, 2026.

Section 3. Severability. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the other remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause or phrase be declared unconstitutional.

Section 4. Publication. This Ordinance shall be published in summary in a newspaper of general circulation, posted in the City Clerk's Office, and posted on the City's website, all in accord with Section 2.15 of the City Charter.

Section 5. Recordation. In accordance with Government Code Section 65868.5, the Agreement will be recorded no later than 10 days after execution.

Section 6. Legislative History and Effective Date. This ordinance was introduced on ___________, 2026 and adopted on ____________, and shall be effective 30 days after its second reading and adoption.

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[0:00 AM] DRAFT

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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City Clerk’s Office
City of San Mateo
330 West 20th Avenue
San Mateo, CA 94403
Exempt from Recording Fee
Pursuant to Government
Code Section 27383
______________________________________________________________________________ Space above this line for Recorder’s Use Only

DEVELOPMENT AGREEMENT
by and between

THE CITY OF SAN MATEO
and
DTSM TALBOTS VENTURE, LLC, a Delaware limited liability company and
MOORE TALBOT PARTNERS, LP, a California limited partnership

City of San Mateo, California

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TABLE OF CONTENTS

Page

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ARTICLE I. DEFINITIONS ....................................................................................................... 3

1.1 Definitions............................................................................................................... 3

1.2 Exhibits. .................................................................................................................. 5 ARTICLE II. GENERAL PROVISIONS................................................................................... 5

2.1 Parties. ..................................................................................................................... 5

2.2 Recording. ............................................................................................................... 6

2.3 Term. ....................................................................................................................... 7

2.4 Force Majeure. ........................................................................................................ 7 ARTICLE III. DEVELOPMENT OF THE PROPERTY ........................................................ 7

3.1 Use of the Property and Applicable Law. ............................................................... 7

3.2 No Conflicting Enactments. .................................................................................... 7

3.3 Reservations of Authority. ...................................................................................... 8

3.4 Subsequently Enacted Rules and Regulations. ....................................................... 8

3.5 Nexus/Reasonable Relationship Waiver. ................................................................ 8

3.6 Initiatives and Referenda. ....................................................................................... 8

3.7 Compliance With Requirements of Other Governmental Entities. ........................ 9

3.8 City’s Police Power............................................................................................... 10

3.9 Subsequent Approvals for the Property. ............................................................... 10

3.10 Life of Approvals and City Permits. ..................................................................... 11

3.11 Developer Obligations. ......................................................................................... 11

3.12 City Obligations. ................................................................................................... 11 ARTICLE IV. COMMUNITY BENEFITS .............................................................................. 11 ARTICLE V. AMENDMENT OF AGREEMENT AND APPROVALS .............................. 12

5.1 Amendment or Cancellation Procedure. ............................................................... 12

5.2 Minor Amendments to Project. ............................................................................. 12

5.3 Requirement for a Writing. ................................................................................... 12

5.4 Amendments to Development Agreement Legislation. ........................................ 13

5.5 Amendment of Development Approvals. ............................................................. 13

5.6 Effect of Termination on Developer’s Obligations. ............................................. 13 ARTICLE VI. ANNUAL REVIEW .......................................................................................... 14

6.1 Time of Review..................................................................................................... 14

6.2 Compliance Letter. ................................................................................................ 14

6.3 Determination of Good Faith Compliance. ........................................................... 14

6.4 No Waiver. ............................................................................................................ 15

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ARTICLE VII. DEFAULT, REMEDIES, AND TERMINATION ........................................ 15

7.1 Notice of Breach. .................................................................................................. 15

7.2 Remedies for Breach. ............................................................................................ 15

7.3 Termination by Mutual Consent. .......................................................................... 15 ARTICLE VIII. ESTOPPEL CERTIFICATE ........................................................................ 15 ARTICLE IX. TRANSFERS, ASSIGNMENTS ...................................................................... 16

9.1 Agreement Runs With the Land. .......................................................................... 16

9.2 Right to Assign. .................................................................................................... 16

9.3 Partial Assignment of Development Agreement. ................................................. 16

9.4 Release Upon Assignment. ................................................................................... 16 ARTICLE X. MORTGAGEE PROTECTION ........................................................................ 17

10.1 Mortgage Protection.............................................................................................. 17

10.2 Mortgagee Not Obligated. .................................................................................... 17

10.3 Notice of Default to Mortgagee. ........................................................................... 17

10.4 No Supersedure. .................................................................................................... 18 ARTICLE XI. INDEMNIFICATION ....................................................................................... 18

11.1 No Duty of City; Hold Harmless. ......................................................................... 18

11.2 Indemnification. .................................................................................................... 18 ARTICLE XII. NOTICES ......................................................................................................... 19

12.1 Notices. ................................................................................................................. 19 ARTICLE XIII. MISCELLANEOUS ....................................................................................... 20

13.1 Cooperation in the Event of Third-party Legal Challenge. .................................. 20

13.2 Invalidity. .............................................................................................................. 20

13.3 Joint and Severable Liability; Property Owner Assumption. ............................... 20

13.4 Applicable Law and Venue. .................................................................................. 20

13.5 Severability. .......................................................................................................... 21

13.6 Nondiscrimination................................................................................................. 21

13.7 Headings. .............................................................................................................. 21

13.8 Agreement is Entire Understanding. ..................................................................... 21

13.9 Interpretation. ........................................................................................................ 21

13.10 Recordation of Termination. ................................................................................. 21

13.11 Counterparts. ......................................................................................................... 22

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Exhibits
Exhibit A-1 – Legal Description of the Property
Exhibit A-2 Legal Description of Developer Owned Property Exhibit A- 3 Legal Description of Developer Leased Property

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DEVELOPMENT AGREEMENT
This Development Agreement (“Agreement”) is entered into on the ____ day of __________, 20__ (the “Effective Date”) by and between the CITY OF SAN MATEO, a California municipal corporation (the “City”), and DTSM Talbots Venture, LLC, a Delaware limited liability company (the “Developer”), and MOORE TALBOT PARTNERS, LP, a California limited partnership (“Property Owner”) under the authority of Sections 65864 et seq. of the California Government Code, with reference to the following facts, purposes, and understandings:

RECITALS
A. California Government Code Section 65864 et seq. authorizes the City to establish procedures for and to enter into binding development agreements with persons having legal or equitable interests in real property located within the City that is the subject of the development agreement.

B. As authorized by Government Code Section 65865(c), the City has adopted Resolution No. 120, the Development Agreement Resolution, establishing the procedures and requirements for the consideration of development agreements within the City. This Agreement is consistent with the City’s development agreement provisions.

C. The City owns certain real property located at 4th and Railroad Avenue designated as Assessor’s Parcel No. 034-179-050 (the “City Property”) and more particularly described in Exhibit A-1, attached hereto and incorporated by this reference. Developer owns certain real property located at 302 E. 4
th Avenue, and 407 South B Street in the City of San
Mateo designated as Assessor’s Parcel Nos 034-179-10 and 034-179-020 (the “Developer Owned Property”) and more particularly described in Exhibit A-2. Property Owner owns certain real property, which is ground leased to Developer, located at 415 and 445 South B Street in the City of San Mateo and designated as Assessor’s Parcel No. APN 034-179-030 and 034-179-040 (the “Developer Leased Property”) and more particularly described in Exhibit A-3.

D Government Code Section 65865 requires that an applicant for a development agreement holds a legal or equitable interest in the real property that is the subject of the development agreement. Developer affirms that it has an ownership interest in the Developer Owned Property and a leasehold interest in the Developer Lease Property pursuant to a lease from the Property Owner, as further described in Exhibits A-2 and A-3 (collectively, the “Developer Property”). City Property and Developer Property are collectively referred to herein as the “Property”.

E. Developer desires to develop the real property through a public-private partnership, in accordance with the provisions of this Agreement, the Development Approvals (defined below), a Disposition and Development Agreement between City, AH Bespoke LP, and DTSM Housing, LLC, of even date herewith (the "Disposition and Development Agreement"), and other applicable regulations of the City of San Mateo and other governmental agencies having jurisdiction over the Property.

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F. On ____, 20__, City’s Planning Commission held a duly noticed public hearing on this Agreement and (i) determined that this Agreement complies in all respects with CEQA, (ii) determined that this Agreement is consistent with the City’s General Plan, and (iii) recommended that the City Council approve this Agreement.

G. The following approvals, entitlements, and findings are being concurrently reviewed and approved by the City with respect to the Property, by City Council Resolution No. __, and constitute the “Development Approvals”:
(1) Initial Study/Mitigated Negative Declaration
(2) Special Use Permit
(3) Site Plan and Architectural Review (SPAR) ,
(4) Site Development Planning Application (SDPA)
H. On ___, 20___, the City examined the environmental effects of the Development Approvals in an Initial Study/Mitigated Negative Declaration (State Clearing House #2024100181), prepared pursuant to CEQA (the “IS/MND”). On ___, 20__, the City Council reviewed and certified as adequate and completed the IS/MND by Resolution No. ___ and adopted written findings and approved the MMRP.

I. On ______, 20__, the City Council held a duly noticed public hearing on this Agreement and considered the Planning Commission’s recommendations and testimony and information submitted by City staff, Developer, and members of the public, and found this Agreement to be consistent with the City’s General Plan and introduced Ordinance No. ____, approving this Agreement.

J. On ___________, 20__, the City Council adopted Ordinance No. ____ enacting this Agreement.

K. The City (in its capacity as “lead agency”) has approved the entitlement application for the Development (as herein defined) and, in accordance with the California Environmental Quality Act, has adopted a mitigated negative declaration for the Development.

L. The development of the Project may require future discretionary approvals and will require certain ministerial approvals from the City, potentially including, but not limited to, landscaping plans, master sign programs, transportation demand management programs, art permits, tree removal permits, encroachment permits, demolition permits, grading permits, building permits, and certificates of occupancy (“Subsequent Approvals”).

M. City, Developer, and Property Owner may each be referred to herein individually as a “Party” or collectively as the “Parties”.

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AGREEMENT
NOW, THEREFORE, for and in consideration of the foregoing Recitals, which are hereby incorporated into this Agreement by this reference, and for other good and valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, the City and Developer hereby agree as follows:

ARTICLE I.

DEFINITIONS

1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the following defined terms are used in this Agreement:

1.1.1 “Adopting Ordinance” shall mean City Council Ordinance No. ___ approving and adopting this Agreement.

1.1.2 “Agreement” shall mean this Development Agreement, as the same may be amended from time to time, including the attached Exhibits and all subsequent operating memoranda and amendments to this Agreement.

1.1.3 “Applicable Law” shall consist of the following:
(a) The City of San Mateo Charter;
(b) The 2030 General Plan of the City;
(c) Downtown Area Plan adopted May 19, 2009;
(d) The City’s Municipal Code current as of the Effective Date; (e) The Development Approvals and their terms and conditions; (f) All other ordinances, resolutions, rules, regulations, standards, policies, conditions, and specifications applicable to the Property in effect on the Effective Date, except as provided in Sections 3.3 and 3.6.

1.1.4 “CEQA” shall mean the California Environmental Quality Act (California Public Resources Code Sections 21000-21177) and the implementing regulations promulgated thereunder by the Secretary for Resources (California Code of Regulations, Title 14, section 15000 et seq.).

1.1.5 “City” shall mean the City of San Mateo, a municipal corporation, and any successor or assignee of the rights and obligations of the City of San Mateo hereunder.

1.1.6 “City Council” shall mean the governing body of the City of San Mateo.

1.1.7 “City Law” shall mean, individually, the San Mateo Municipal Code, the City Charter, and other ordinances, resolutions, rules, regulations, standards, policies, conditions, or specifications of the City.

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1.1.8 “Compliance Letter” shall mean a letter submitted by Developer describing Developer’s compliance with the terms of the Development Approvals and this Agreement.

1.1.9 “City Planning Commission” shall mean the duly appointed and constituted planning commission of the City.

1.1.10 “City Property” has the meaning set forth in Recital C.

1.1.11 “Developer” shall mean DTSM Talbots Venture, LLC, a Delaware limited liability company, and any successor or assignee to all or any portion of its right, title, and/or interest in and to ownership of all or a portion of the Developer Property and/or the Project.

1.1.12 “Developer Property” has the meaning set forth in Recital D.

1.1.13 “Development Agreement Statute” shall mean California Government Code Sections 65864-65869.5, inclusive.

1.1.14 “Director” shall mean the City’s Community Development Director.

1.1.15 “Effective Date” shall mean the date the Authorizing Ordinance becomes effective.

1.1.16 “General Plan” shall mean the City’s 2030 General Plan adopted by the City Council on October 18, 2010.

1.1.17 “Mortgage” shall mean the mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Property, or a part or interest in the Property, is pledged as security and contracted for in good faith and for fair value.

1.1.18 “Mortgagee” shall mean the holder of a beneficial interest under a Mortgage or any successor or assignee of the Mortgagee.

1.1.19 “Project” consists of the construction of two buildings over a shared parking subterranean parking garage—a seven-story residential building that would include approximately 71 affordable units and approximately 5,700 square feet of ground floor commercial space, anticipated to be initially leased to the Center for Self-Help for the Elderly, and the “Commercial Development” consisting of a six-story commercial building that would include approximately 149,000 square feet of office and approximately 14,000 square feet of retail/restaurant space, as further and more specifically described in the Development Approvals.

1.1.20 “Property” is defined in Recital D.

1.1.21 “Residential Development” means the development which will be located on the City Property, consisting of a seven story building with approximately 71 affordable housing units, approximately 5,700 square feet of ground floor commercial space anticipated to be initially leased to the Center for Self-Help for the Elderly, and on-site open space to be developed by the Residential Developer.

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1.1.22 “Residential Developer” shall mean the developer that enters into the ground lease with the City to develop the Residential Development.

1.1.23 “Term” is defined in Section 2.3.

1.1.24 “Third Party Challenge” shall mean any legal action instituted by a third party or other governmental entity or official challenging the validity of any provision of this Agreement.

1.1.25 “Subsequent Approvals” is defined in Recital K.

1.2 Capitalized Terms. If any capitalized terms contained in this Agreement are not defined above, then any such terms shall have the meaning otherwise ascribed to them in this Agreement.

1.3 Recitals. The Parties hereby confirm the accuracy of the foregoing Recitals, which are incorporated herein by this reference.

1.4 Exhibits.

The following exhibits are attached to and incorporated to the Agreement:

Exhibit A-1: Legal Description of the City Property
Exhibit A-2: Legal Description of the Developer Owned Property Exhibit A-3: Legal Description of Developer Leased Property

ARTICLE II.

GENERAL PROVISIONS

2.1 Parties.

2.1.1 Parties to this Agreement.
(a) The City of San Mateo, a California charter city. The office of the City is located at 330 West 20th Avenue, San Mateo, California 94403. (b) DTSM Talbots Venture, LLC, a Delaware limited liability company, is the Commercial Developer. For purposes of this Agreement, the principal address of this Commercial Developer is 180 Grand Ave, Oakland, California 94610. (c) Moore Talbot Partners, LP, a California limited partnership, is the Property Owner of that certain property leased to Commercial Developer. For purposes of this Agreement, the principal address of Property Owner is 2628 Sunset Terrace, San Mateo, California 94403.

2.1.2 Developer Representations and Warranties.

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(a) Developer represents and warrants that, as of the Effective Date of this Agreement, Developer is:
(i) Duly organized and validly existing under the laws of the State of California;
(ii) Qualified and authorized to do business in the State of California and has duly complied with all requirements pertaining thereto; (iii) In good standing and has all necessary powers under the laws of the State of California to own property and, in all other respects, enter into and perform the undertakings and obligations of this Agreement.
(b) Developer further represents and warrants:
(i) That no approvals or consents of any persons are necessary for the execution, delivery, or performance of this Agreement by Developer, except as have been obtained;
(ii) That the execution and delivery of this Agreement and the performance of the obligations of Developer have been duly authorized by all necessary actions and approvals required under any management and operating agreement for the corporation constituting Developer; and
(iii) That this Agreement is a valid obligation of Developer enforceable in accordance with its terms.
(c) Property Owner Representations and Warranties.
(i) Is the legal owner of the Developer Lease Property; (ii) Has entered into a lease agreement with Developer; (iii) Consents to the terms of this Agreement;
(iv) Consents to the recordation of this Agreement against the title of the Developer Leased Property.

2.1.3 Relationship of City and Developer.

It is understood that this Agreement is a contract that has been negotiated and voluntarily entered into by City and Developer and that the Developer is an independent contractor and not an agent or partner of City.

City and Developer hereby renounce the existence of any form of joint venture or partnership between them and agree that nothing contained in this Agreement or in any document executed in connection with this Agreement shall be construed as making City and Developer joint venturers or partners.

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2.2 Recording.

Within ten (10) days after the Effective Date, the City Clerk shall cause recordation of this Agreement with the County Recorder against the fee interest of Property.

2.3 Term.

The term of this Agreement (the “Term”) shall commence upon the Effective Date and shall terminate ten (10) years following the Effective Date, unless sooner terminated. The Term shall be automatically extended for the period of time of each "buffer" (as defined in the Disposition and Development Agreement) in the "Schedule of Performance" (as defined in the Disposition and Development Agreement) granted by the City in accordance with the terms of the Disposition and Development Agreement. In no event shall the Term, including all extensions, extend beyond fourteen (14) years and six (6) months following the Effective Date except for permitted extensions to the Term for qualifying Force Majeure Events under Section

2.4. Notwithstanding the foregoing, those provisions of this Agreement that recite that they survive termination of this Agreement shall all remain in full force and effect.

2.4 Force Majeure.

Performance by a Party hereunder shall not be deemed to be in default where delays or failure in performance of any obligation under this Agreement are due to, and are outside the reasonable control of, and at the time of entering into this Agreement are not known and cannot be anticipated by the Party claiming the delay: war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; casualties; acts of God; disruptions to supply chains, failure of utility providers to timely provide the applicable service; or acts of the public enemy (collectively, “Force Majeure Events”). In order to claim a delay under this Section 2.4, a Party must notify the other applicable Party of such delay claim within fifteen (15) business days after the claiming Party has actual knowledge of such delay and the delay will be deemed granted if not rejected by the other Party within fifteen (15) business days after receipt of the notice. In no event shall the cumulative delays exceed one hundred eighty (180) days, unless otherwise agreed to in writing by the Parties, or unless and to the extent that physical damage to improvements impacted by a Force Majeure Event cannot reasonably be repaired within the remaining days within the 180- day cumulative limit as reasonably determined by the Developer and its contractor. Force Majeure Events shall be concurrent with and not additional to delays caused by Force Majeure Events under the Disposition and Development Agreement. The Term shall be automatically extended by the period of time of a Force Majeure Event, subject to the cumulative maximum delay for Force Majeure Events permitted by this Section 2.4.

ARTICLE III.

DEVELOPMENT OF THE PROPERTY

3.1 Use of the Property and Applicable Law.

3.1.1 Subject to Agreement.

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The Property is hereby made subject to the provisions of this Agreement. All development of, or on, the Property, or any portion thereof, shall be undertaken only in compliance with the provisions of this Agreement and with Applicable Law.

3.1.2 Permitted Uses.

The permitted uses of the Property, the density or intensity of use, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes shall be governed by Applicable Law.

3.2 No Conflicting Enactments.

Except as and to the extent required by state or federal law, and subject to the provisions of Sections 3.3 and 3.7 below, the City shall not impose on the Property any City Law that has any of the following effects on the rights provided by Applicable Law:

3.2.1 Reduces the maximum amount of development space
or residential units if
permitted on the Property from that permitted by Applicable Law;

3.2.2 Changes any land use designation or permitted use of the Property from that shown in Applicable Law;

3.2.3 Limits or controls the rate, timing, phasing or sequencing of the approval, development, or construction of all or any part of the Property except as set forth in the Applicable Law;

3.2.4 Limits or restricts any right or use specifically granted by the Development Approvals;

3.2.5 Imposes new requirements for dedication of land or monetary exactions other than as provided in the Development Approvals or pursuant to this Agreement; or

3.2.6 Imposes new impact fees or increases to impact fee by an amount greater than contemplated by a fee escalator existing as of the Effective Date.

3.3 Reservations of Authority.

The development of the Project will require Subsequent Approvals from the City.

Notwithstanding any other provision of this Agreement, and notwithstanding the provisions of Section 3.2, at the time Subsequent Approvals are applied for, the following regulations and provisions in place at the time of Subsequent Approval application shall apply to those Subsequent Approvals:

3.3.1 All taxes and assessments imposed by the City which are in force and effect within the jurisdiction of the City for a broadly based class of land, projects, discretionary or ministerial approvals, or taxpayers, as applicable, on which they are imposed.

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3.3.2 Processing fees and charges of every kind and nature imposed by the City, including application, inspection, and monitoring fees, which are in force and effect within the jurisdiction of the City for the class of Subsequent Approvals being applied for.

3.3.3 Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure, which are in force and effect within the jurisdiction of the City for the class of City Permits being applied for.

3.3.4 Regulations governing construction standards and specifications including, without limitation, the City’s building code, plumbing code, mechanical code, electrical code, fire code and grading code, all provisions of Title 23 of the San Mateo Municipal Code, and all other uniform construction codes which are in force and effect within the jurisdiction of the City for the class of Subsequent Approvals being applied for. The Parties acknowledge that California Assembly Bill 130 (2025), Chapter 22 (Cal. Stat. 2025) ("AB 130"), limits the changes permitted to be made to the California Building Standards applicable to residential units until June 1, 2031.

3.4 Subsequently Enacted Rules and Regulations.

The City may during the term of this Agreement apply such newer City Laws that are in force and effect within the jurisdiction of the City for the class of Subsequent Approvals being applied for and which are not in conflict with the terms of this Agreement or the Development Approvals. To the extent any changed City Law is in conflict with the terms of this Agreement or the Development Approvals, the terms of this Agreement or the Development Approvals, as applicable, shall prevail.

3.5 Nexus/Reasonable Relationship Waiver.

Developer consents to, and waives any rights it may have now or in the future, to challenge with respect to the Project or Development Approvals, the legal validity of, the conditions, requirements, policies, or programs required by this Agreement, or the Development Approvals, including, without limitation, any claim that they constitute an abuse of police power, violate substantive due process, deny equal protection of the laws, effect a taking of property without payment of just compensation, or impose an unlawful tax.

3.6 Initiatives and Referenda.

3.6.1 If any City Law is enacted or imposed by a citizen-sponsored initiative or referendum, or by the City Council directly or indirectly in connection with any proposed initiative or referendum, which City Law would conflict with this Agreement or the Development Approvals, such City Law shall not apply to the Project. The parties, however, acknowledge that the City’s approval of this Agreement is a legislative action subject to referendum.

3.6.2 Without limiting the generality of any of the foregoing, no City-adopted moratorium or other limitation (whether relating to the rate, timing, phasing or sequencing of development) affecting subdivision maps, building permits, or other Subsequent Approvals shall

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apply to the Project. Developer agrees and understands that the City does not have authority or jurisdiction over another public agency’s authority to grant a moratorium or impose any other limitation that may affect the Project.

3.6.3 The timing, sequencing, and phasing of the development is solely the responsibility of Developer so long as it is consistent with Applicable Law. In particular, the parties desire to avoid the result of Pardee Construction Co. v. City of Camarillo (1984) 37 Cal.3d 465, where the failure of the parties therein to consider and expressly provide for the timing of the development resulted in a later adopted initiative restricting the timing of development to prevail over such parties’ agreement. The parties therefore acknowledge that Developer shall have the right to develop the Project at such time as Developer deems appropriate so long as such development is consistent with Applicable Law.

3.6.4 The City shall cooperate with Developer and shall undertake such actions as may be necessary to ensure this Agreement remains in full force and effect.

3.7 Compliance With Requirements of Other Governmental Entities.

3.7.1 During the Term, Developer, at no cost to City, shall comply with lawful requirements of, and obtain all permits and approvals required by other local, regional, State and Federal agencies having jurisdiction over Developer's activities in furtherance of this Agreement.

Developer shall pay all required fees when due to Federal, State, regional, or other local governmental agencies other than the City and acknowledges that City does not control the amount of any such fees.

3.7.2 City shall cooperate with Developer in Developer’s effort to obtain permits and approvals from Federal, State, regional, and other local governmental agencies, provided that same does not impose any costs on or require the City to incur any costs without compensation or reimbursement, or require the City to amend any of the City’s policies, regulations, or ordinances.

3.7.3 As provided in California Government Code § 65869.5, this Agreement shall not preclude the application to the Property and Project of changes in laws, regulations, plans, or policies, to the extent that such changes are specifically mandated and required by changes in State or Federal laws or regulations. In the event changes in the law prevent or preclude compliance with one or more provisions of this Agreement, this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations. The parties shall meet and confer in good faith in order to determine whether such provisions of this Agreement shall be modified or suspended as may be necessary to comply with changes in the law, and City and Developer shall agree to such action as may be reasonably required. It is the intent of the parties that any such modification or suspension be limited to that which is necessary and to preserve to the extent possible the original intent of the parties in entering into this Agreement. This Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations. Nothing in this Agreement shall preclude the City or Developer from contesting by any available means (including administrative or judicial proceedings) the applicability to the Property or Project of any such State or Federal laws or regulations.

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3.7.4 To the extent that any actions of Federal or State agencies (or actions of other governmental agencies, including City, required by Federal or State agencies, or actions of City taken in good faith to prevent adverse impacts upon City by actions of Federal, State or other governmental agencies) have the effect of preventing, delaying, or modifying development of the Property or any portion thereof, City shall not in any manner be liable for any such prevention, delay, or modification. Such actions include, but are not limited to, flood plain or wetlands designations and actions of City or other governmental agencies as a result; the imposition of air quality or transportation measures or sanctions and actions of City or other governmental agencies as a result; or changes to CEQA and actions of City or other governmental agencies as a result. As a condition to being able to proceed with development, Developer may be required, at its cost, to participate in such regional or local programs and to be subject to such development restrictions as may be necessary or appropriate by reason of actions of Federal, State or other governmental agencies (or action of City taken in order to prevent adverse impacts upon City by actions of Federal, State, or other governmental agencies).

3.8 City’s Police Power.

The parties acknowledge and agree that the limitations, reservations, and exceptions contained in this Agreement are intended to reserve to the City that part of its police power which cannot be limited by contract, and this Agreement shall be construed to reserve to the City that part of its police power which cannot be restricted by contract.

3.9 Subsequent Approvals for the Property.

3.9.1 Applications for Subsequent Approvals are anticipated to be submitted to the City by the Developer. Applications for Subsequent Approvals shall be processed and considered in a manner consistent with the rights granted by this Agreement and Applicable Law, including without limitation the Development Approvals.

3.9.2 The City has made a final policy decision that the development of the Property consistent with the Development Approvals, is in the best interests of the public health, safety, and general welfare. Accordingly, the City shall not use its authority in considering any application for a Subsequent Approval that is consistent with the Development Approvals to change the policy decisions reflected by the Development Approvals. Nothing herein shall limit the ability of the City to require the necessary reports, analysis, or studies to assist in determining whether the requested Subsequent Approvals are consistent with Applicable Law and this Agreement. City’s review of the Subsequent Approvals shall be consistent with this Agreement, including without limitation Section 3.2 of this Agreement.

3.9.3 Any conditions, terms, restrictions, or requirements imposed by the City on Subsequent Approvals shall not prevent development of the Property for the uses and to the density and intensity of development included in the Development Approvals.

3.10 Life of Approvals and City Permits.

The terms of (a) any future tentative or parcel map (including vesting maps, map amendments, and lot line adjustments) which may be approved for the Property (as provided for in the Subdivision Map Act, Government Code Sections 66410 et seq.), or (b) the Development

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Approvals and Subsequent Approvals, shall automatically be extended for the longer of the duration of this Agreement (including any Extensions) or the term otherwise applicable to such Development Approval if this Agreement is no longer in effect.

3.11 Developer Obligations.

In addition to any other obligations of Developer set forth herein, in consideration of City entering into this Agreement, Developer has agreed that if Developer commences development of the Property and proceeds to develop the Property, such development shall be in conformance with all of the terms, covenants, and requirements of this Agreement and Applicable Law, and Developer shall perform those specific obligations identified in the Development Approval.

Developer shall pay when due any and all fees, impact fees, and costs which are lawfully imposed on all or any portion of the Property, whether imposed by City or other agencies. As a material inducement to City to enter into this Agreement, Developer further agrees that, as long as this Agreement is in effect:

3.11.1 The provisions of this Agreement shall govern and control the City Law to be applied to this development of the Property over any contrary or inconsistent provisions of the Development Agreement Statute. Developer waives the benefits of any Development Agreement Statute as it may be inconsistent or contrary to the provisions of this Agreement.

3.12 City Obligations.

In addition to any other obligations of City set forth herein, and in consideration of Developer entering into this Agreement, City acknowledges that the primary purpose of this Agreement is to effectuate the terms of the Development Approvals so that the Project is developed.

ARTICLE IV.

COMMUNITY BENEFITS

4.1 Developer shall provide the following benefits to the City, which are essential consideration to the City, without which the City would not have entered into this Agreement:

4.1.1 Construction of the parking garage, including 37 dedicated spaces and 25 shared spaces for the affordable housing project. Developer and City will enter into a shared parking agreement whereby Developer will make available to the public [__] parking spaces in the underground garage on [dates and times]. This agreement will be entered into by the parties prior to issuance of the first building permit for the underground garage.

4.1.2 Developer Contribution Payment. A payment from the Developer to the City of $2,900,000 to be made within one hundred twenty (120) days of issuance of Project Development Approvals (the “Developer Contribution”).

4.1.3 Residential Developer will offer ground floor space in the affordable housing building at a substantially subsidized rent to Self-Help for the Elderly or other nonprofit entity as reasonably approved by the Director.

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4.1.4 Project construction will be subject to the prevailing wage and Department of Industrial Relations (DIR) registry requirements.

ARTICLE V.

AMENDMENT OF AGREEMENT AND APPROVALS

5.1 Amendment or Cancellation Procedure.

City and Developer by mutual agreement may terminate or amend the terms of this Agreement, and the amendment or termination shall be accomplished in the manner provided under California law pertaining to development agreements and City of San Mateo Municipal Code Section 27.06, or any successor provisions thereto.

5.2 Minor Amendments to Project.

Upon the written application of Developer, and mutual consent of the parties, minor modifications and clarifications to the Project may be approved by the Director and submitted to the Planning Commission on the consent calendar, in conformance with San Mateo Municipal Code section 27.06.40. The Director, in consultation with the City Manager, shall determine whether a requested modification may be effectuated pursuant to this Section. Such minor modifications and changes to the Project shall not be considered to be amendments pursuant to Section 5.1, above.

5.3 Requirement for a Writing.

No amendment, or cancellation of this Agreement or any provision hereof shall be effective for any purpose unless adopted in the manner provided under California law, San Mateo Municipal Code Chapter 27, and Ordinance No. 120 pertaining to development agreements and specifically set forth in a writing, which refers expressly to this Agreement and is signed by duly authorized representatives of the parties. The City Clerk shall record an appropriate notice of any amendment or cancellation with the County Recorder not later than ten (10) days after the effective date of the action effecting such amendment or cancellation, accompanied by a legal description of the Property.

5.4 Amendments to Development Agreement Legislation.

This Agreement has been entered into in reliance upon the provisions of the Development Agreement Statute, as those provisions existed at the date of execution of this Agreement. No amendment or addition to those provisions which would materially affect the interpretation or enforceability of this Agreement shall be applicable to this Agreement unless such amendment or addition is specifically required by State Law, or is mandated by a court of competent jurisdiction. If such amendment or change is permissive (as opposed to mandatory), this Agreement shall not be affected unless the parties mutually agree in writing, after following the procedures in Section 5.1, to amend this Agreement to permit such applicability.

5.5 Amendment of Development Approvals.

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To the extent permitted by local, state, and federal law, any Development Approval may, from time to time, be amended or modified by submittal of an application from the Developer and following the procedures for such amendment or modification contained in the San Mateo Municipal Code. Upon any approval of such an amendment or modification, the amendment or modification shall automatically be deemed to be incorporated into the Applicable Law without any further procedure to amend this Agreement.

5.6 Effect of Termination on Developer’s Obligations.

5.6.1 Notwithstanding any other provision to the contrary, termination or cancellation of this Agreement or termination of the rights of Developer as to the entire Property, or any part of the Property, shall not affect any requirement to comply with the Development Approvals, the terms and conditions of any other Subsequent Approval, nor any payments then due and owing to City, nor shall it affect the covenants of Developer specified in Section 5.6.2 below, to continue after the termination or cancellation of this Agreement. After termination of this Agreement, Developer shall have no rights to challenge a modification to the Development Approvals by reason of this Agreement other than the rights, if any, Developer would have in the absence of this Agreement.

5.6.2 Notwithstanding anything in this Agreement to the contrary, the following provisions of this Agreement shall survive and remain in effect following termination or cancellation of this Agreement for so long as necessary to give them full force and effect with respect to claims or rights of City arising prior to termination or cancellation:
(a) Section 5.6 (Developer’s obligations upon termination or cancellation); (b) Section 7.2 (Remedies; limitation on damages); and
(c) Section 11.2 (Indemnification).

ARTICLE VI.

ANNUAL REVIEW

City and Developer shall review all actions taken pursuant to the terms of this Agreement once annually, within sixty (60) days prior to each anniversary of the Effective Date, during each year of the Term unless the City and Developer agree in writing to conduct the review at another time. Review of compliance with the terms of this Agreement shall be conducted by the Planning Commission. Pursuant to San Mateo Municipal Code Section 27.60.120 and Resolution No. 120 (1999), Developer shall initiate the review by filing an application with the City and provide all the documents and information necessary for the City to complete the annual review and make a determination of whether Developer is in compliance.

6.2 Compliance Letter.

Before each anniversary of the Effective Date, Developer shall submit a letter (“Compliance Letter”), along with all necessary supporting documentation, to the Director

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describing Developer’s compliance with the terms of the Development Approvals and this Agreement during the preceding year. The Compliance Letter shall include a statement that the Compliance Letter is submitted to the City pursuant to the requirements of Government Code Section 65865.1 and of the City’s regulations on Development Agreements.

6.3 Determination of Good Faith Compliance.

Within thirty (30) days after receipt of the Compliance Letter, the Planning Commission shall determine whether, for the year under review, Developer has demonstrated good faith substantial compliance with the terms of this Agreement. If the Planning Commission finds and determines that Developer has complied substantially with the terms of this Agreement, or does not determine otherwise within thirty (30) days after delivery of the Compliance Letter, the annual review shall be deemed concluded and this Agreement shall remain in full force and effect. Upon its determination of compliance, the Developer may request a recordable certificate confirming Developer’s compliance through the year under review. Developer may record the certificate with the San Mateo County Recorder’s Office.

If the Planning Commission initially determines the Compliance Letter to be inadequate in any respect, the City shall provide notice to that effect to Developer and schedule a public hearing. If after a duly noticed public hearing, the City Council finds and determines, on the basis of substantial evidence, that Developer has not complied substantially in good faith with the terms of this Agreement for the year under review, the City Council shall give written notice thereof to Developer specifying the noncompliance. If Developer fails to cure the noncompliance within a reasonable period of time as established by the City Council, but in no event less than 60 days from the date of receipt of such notice, the City Council, in its discretion, may (a) grant additional time for Developer’s compliance, or, following the hearing, modify this Agreement to the extent necessary to remedy or mitigate the noncompliance, (b) may modify this Agreement pursuant to the provisions of Section 8 below, or (c) terminate the Agreement pursuant to Article VI below.

6.4 No Waiver.

Failure of City to conduct an annual review shall not constitute a waiver by City of its rights to otherwise enforce the provisions of this Agreement nor shall Developer have or assert any defense to such enforcement by reason of any failure to conduct an annual review. City does not waive any claim of defect or breach by Developer if, following periodic review pursuant to this Article V, City does not propose to modify or terminate this Agreement.

ARTICLE VII.

DEFAULT, REMEDIES, AND TERMINATION

7.1 Notice of Breach.

Failure by either party to perform any material term or provision of this Agreement shall constitute a default hereunder, provided that the party alleging the default shall have given the other party advance written notice thereof and sixty (60) days within which to cure the condition, or, if the nature thereof is such that it cannot be cured within that time, the party receiving notice shall not be in default hereunder if the party promptly commences to perform its obligations

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hereunder and thereafter diligently completes performance. Written notice hereunder shall specify in detail the nature of the obligation to be performed by the party receiving notice.

7.2 Remedies for Breach.

It is acknowledged by the parties that neither City nor Developer would have entered into this Agreement if it were to be liable for damages under, or with respect to, this Agreement or the application thereof. The City shall not be liable in damages to Developer, or to any assignee, transferee or any other person, and Developer covenants not to sue for or claim damages, while reserving the right to initiate legal proceedings to specifically enforce or terminate this Agreement. Developer shall not be liable in damages to the City, or to any assignee, transferee or any other person, and City covenants not to sue for claims for damages. Upon Developer’s material default pursuant to Article VII hereof, City shall be entitled to initiate legal proceedings to specifically enforce or terminate this Agreement or the City may terminate this Agreement pursuant to Article VI. Nothing in this Section 7.2 is intended to limit the remedies available to the City or Developer under the Disposition and Development Agreement.

7.3 Termination by Mutual Consent.

This Agreement may be voluntarily terminated in whole or in part by the mutual consent of the parties or their successors in interest, in the sole and absolute discretion of each as to its consent.

ARTICLE VIII.

ESTOPPEL CERTIFICATE
Either party may, at any time, and from time to time, deliver written notice to the other party requesting such party to certify in writing that, to the knowledge of the certifying party, (a) this Agreement is in full force and effect and is a binding obligation of the parties, (b) this Agreement has not been amended or modified or, if so amended or modified, identifying the amendments or modifications, and (iii) the requesting party is not in default in the performance of its obligations under this Agreement, or if in default, to describe the nature of any defaults.

The party receiving a request under this Article VIII shall execute and return the certificate within thirty (30) days following receipt of the request. The Director shall be authorized to execute any certificate requested by Developer. Developer and City acknowledge that a certificate hereunder may be relied upon by transferees and Mortgagees. Developer shall pay the City’s reasonable costs involved in providing such estoppel certificate.

ARTICLE IX.

TRANSFERS, ASSIGNMENTS

9.1 Agreement Runs With the Land.

9.1.1 This Agreement and all of its provisions, agreements, rights, powers, standards, terms, covenants and obligations, shall be binding upon the parties and their respective heirs, successors (by merger, consolidation, or otherwise) and assigns, devisees, administrators, representatives, lessees, and all other persons or entities acquiring the Property or any portion thereof, or any interest therein, whether by sale, operation of law, or in any manner whatsoever,

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and shall inure to the benefit of the parties and their respective heirs, successors (by merger, consolidation or otherwise) and assigns.

9.1.2 All of the provisions of this Agreement shall be enforceable during the Term as equitable servitudes and constitute covenants running with the land pursuant to applicable law, including, but not limited to Section 1468 of the Civil Code of the State of California. Each covenant to do or refrain from doing some act on the Property hereunder, (a) is for the benefit of the Property and is a burden upon the Property, (b) runs with the Property, and (c) is binding upon Developer and each successive owner during its ownership of the Property or any portion thereof, and each person or entity having any interest in the Property. Every person who now or hereafter owns or acquires any right, title or interest in or to any portion of the Property is and shall be conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Property.

9.2 Right to Assign.

9.2.1 Developer shall have the right to assign its rights to develop the Property (by sale, transfer, or otherwise) to any person, business entity, or other similar entity (“Assignee”). Any such transfer shall be deemed to include an assignment of all rights, duties, and obligations created by this Agreement with respect to all or any portion of the Property.

9.3 Partial Assignment of Development Agreement.

9.3.1 Notwithstanding anything to the contrary set forth herein, concurrently with the closing of the ground lease contemplated in the Disposition and Development Agreement, the Commercial Developer and or Residential Developer shall have the right to cause those portions of this Agreement which are applicable to the Residential Developer or the residential development to be assumed and assigned to the Residential Developer pursuant to a separate recorded agreement between the City and Residential Developer (and subject to the reasonable approval of the Commercial Developer, or Residential Developer, as applicable).

9.4 Release Upon Assignment.

9.4.1 Upon the express written assumption by the Assignee of Developer’s rights and interests under this Agreement (the “Assignment Agreement”), Developer shall be free from any and all liabilities accruing on or after the date of assignment with respect to those obligations assumed by the Assignee pursuant to the Assignment Agreement, except to the extent that Developer is in default with respect to any and all obligations at the time of the proposed transfer.

ARTICLE X.

MORTGAGEE PROTECTION

10.1 Mortgage Protection.

This Agreement shall be superior and senior to any lien placed upon the Property or any portion of the Property after the date of recording of this Agreement, including the lien of any

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deed of trust or mortgage (“Mortgage”). Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value, but all of the terms and conditions contained in this Agreement (including but not limited to City’s remedies to terminate the rights of Developer (and its successors and assigns) under this Agreement, to terminate this Agreement, and to seek other relief as provided in this Agreement) shall be binding upon and effective against any person or entity, including any deed of trust beneficiary or mortgagee (“Mortgagee”) who acquires title to the Property, or any portion thereof, by foreclosure, trustee’s sale, deed in lieu of foreclosure, or otherwise.

10.2 Mortgagee Not Obligated.

Notwithstanding the provisions of Section 10.1 above, no Mortgagee shall have any obligation or duty under this Agreement to construct or complete the construction of improvements on the Property, or to guarantee such construction or completion; provided, however, that a Mortgagee shall not be entitled to devote the Property to any uses or to construct any improvements on the Property other than those uses or improvements provided for or authorized by this Agreement, or otherwise under Applicable Law. City, upon receipt of a written request from a Mortgagee, shall permit the Mortgagee to succeed to the rights and obligations of Developer under this Agreement, provided that all defaults by Developer hereunder that are reasonably susceptible of being cured are cured by the Mortgagee as soon as is reasonably possible after the Mortgagee takes possession of the Property.

10.3 Notice of Default to Mortgagee.

If City receives a written notice from a Mortgagee, Developer, or any approved Assignee requesting a copy of any notice of default given Developer or any approved Assignee and specifying the address for service, then City shall deliver to the Mortgagee at Mortgagee’s cost (or Developer’s cost), concurrently with service to Developer, any notice given to Developer with respect to any claim by City the Developer is in default under this Agreement, and if City makes a determination of default, City shall if so requested by the Mortgagee likewise serve at Mortgagee’s cost (or Developer’s cost) notice of noncompliance on the Mortgagee concurrently with service on Developer. Each Mortgagee shall have the right during the same period available to Developer to cure or remedy, or to commence to cure or remedy, the event of default claimed or the areas of noncompliance set forth in City’s notice.

10.4 No Supersedure.

Nothing in this Article X shall be deemed to supersede or release a Mortgagee or modify a Mortgagee’s obligations under any subdivision improvement agreement or other obligation incurred with respect to the Property outside this Agreement, nor shall any provision of this Article X constitute an obligation of City to the Mortgagee, except as to the notice requirements of Section 10.3.

ARTICLE XI.

INDEMNIFICATION

11.1 No Duty of City; Hold Harmless.

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It is specifically understood and agreed by the parties that the development contemplated by this Agreement is a private development, that City has no interest in or responsibility for or duty to third persons concerning any of said improvements, and that Developer shall have full power over and exclusive control of the Property subject only to the limitations and obligations of Developer under this Agreement.

11.2 Indemnification.

Developer hereby agrees to and shall indemnify, defend (with counsel approved by the City), and hold harmless City and its elected and appointed representatives, officers, agents, and employees (“Indemnified Parties”) from any loss, liability, fines, penalties, forfeitures, costs, and damages (whether in contract, tort, or strict liability, including but not limited to personal injury, death at any time, and property damage) and from any and all claims, demands, and actions in law or equity (including attorneys’ fees and litigation expenses) to the extent directly or indirectly arising or alleged to have arisen out of or in any way related to: (a) the approval of this Agreement or the Development Approvals; (b) any development or use of the Property under this Agreement or the Development Approvals; (c) directly or indirectly arising from Hazardous Materials existing or occurring prior to, during or arising from Developers’ ownership or lease of the Developer Property or development of the Property, including without limitation the costs of any required or necessary repair, cleanup, or detoxification of the Property or the Project, and the preparation and implementation of any closure, remedial or other required plans; and (d) any actions or inactions by the Developer or its contractors, subcontractors, agents, or employees in connection with the construction or improvement of the Property and the Project; excepting to the extent arising from the intentional acts or willful misconduct of City, its elected and appointed representatives, officers, agents, employees, contractors or subcontractors.

For purposes of this Section 11.2, “Hazardous Materials” means flammable materials, explosives, radioactive materials, hazardous wastes, toxic substances and similar substances and materials, including all substances and materials defined as hazardous or toxic wastes, substances, or materials under any applicable law, including, without limitation, the Resource Conservation and Recover Act, 42 U.S.C. Sections 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S. C. Sections 9601 et seq.as amended, those substances defined as “hazardous waste” in Section 25117 of the California Health and Safety Code, and other substances, materials, and wastes that are, or become, regulated or classified as hazardous or toxic under federal, state, or local laws or regulations and in regulations adopted pursuant to said laws. “Hazardous Materials” expressly excludes substances typically used in the construction, development or maintenance of a commercial or residential building provided such substances are used in accordance with all applicable laws.

This indemnification and hold harmless agreement applies to all damages and claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this Section 11.2, regardless of whether or not City prepared, supplied, or approved plans or specifications for the Property, but does not apply to damages and claims for damages caused by City with respect to public improvements and facilities after City has accepted responsibility for them. Developer’s duty to indemnify shall survive expiration or early termination of this Agreement.

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ARTICLE XII.

NOTICES

12.1 Notices.

Formal written notices, demands, correspondence and communications between City and Developer shall be sufficiently given if: (a) personally delivered; or (b) dispatched by next day delivery by a reputable carrier such as Federal Express or DHL to the offices of City and Developer indicated below, provided that a receipt for delivery is provided; or (c) if dispatched by certified mail, postage prepaid, to the offices of City and Developer indicated below. Such written notices, demands, correspondence, and communications may be sent in the same manner to such persons and addresses as either party may from time-to-time designate by notice as provided in this Section. A copy of the notice should be sent via e-mail as well to the email addresses provided in this Section.

CITY: City Manager
City of San Mateo
330 West 20th Avenue
San Mateo, CA 94403
email:

With copy to: City Attorney
City of San Mateo
330 West 20
th Avenue
San Mateo, CA 94403
email:

DEVELOPER:

DTSM Talbots Venture, LLC
c/o Harvest Properties
180 Grand Avenue, Suite 1400
Oakland, CA 94612
Attn: Preston O’Connell
With a copy to:

Prometheus Real Estate Group, Inc.
1 N. B Street, Suite 4000
San Mateo, California 94401
Attn: ______________

PROPERTY OWNER:

Moore Talbot Partners, LP,
2628 Sunset Terrace

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San Mateo, California 94403.

Attn:

With copy to :

ARTICLE XIII.

MISCELLANEOUS

13.1 Cooperation in the Event of Third-party Legal Challenge.

In the event of any legal action instituted by a third party or other governmental entity or official challenging the validity of any provision of this Agreement (“Third Party Challenge”), the parties shall mutually cooperate with each other relating to the Third Party Challenge.

13.2 Invalidity.

If any part of this Agreement is held by a court of competent jurisdiction to be invalid or unlawful, the parties shall: use their best efforts to cure any inadequacies or deficiencies identified by the court in a manner consistent with the express and implied intent of this Agreement, and then to adopt or re-enact such part of this Agreement as necessary or desirable to permit implementation of this Agreement.

13.3 Joint and Severable Liability; Property Owner Assumption. All covenants, obligations, and agreements of Developer under this Agreement, including but not limited to the indemnification in Section 11.2, shall be joint and severable as it related to the Developer Leased Property and shall automatically be assigned to and assumed by Property Owner upon termination of Developer’s property interest in the Developer Leased Property.

13.4 Applicable Law and Venue.

This Agreement shall be construed and enforced in accordance with the laws of the State of California. Any action at law or in equity arising under this Agreement or brought by any Party for the purposes of enforcing, construing, or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of San Mateo, or the United States District Court for the 9th District of California.

13.5 Severability.

Except as otherwise provided herein, if any provision(s) of this Agreement is (are) held invalid, the remainder of this Agreement shall not be affected except as necessarily required by the determination of invalidity, and shall remain in full force and effect unless amended or modified by mutual consent of the parties.

13.6 Nondiscrimination.

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Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the development of the Property in furtherance of this Agreement. The foregoing covenant shall run with the land.

13.7 Headings.

The language in this Agreement in all cases shall be construed as a whole and in accordance with its fair meaning. Section and subsection headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants, or conditions of this Agreement.

13.8 Agreement is Entire Understanding.

This Agreement is executed in one original, which constitutes the entire understanding and agreement of the parties. The parties acknowledge and agree that neither of them has made any representation with respect to the subject matter of this Agreement or any representations inducing the execution and delivery hereof, except representations set forth herein, and each party acknowledges that it has relied on its own judgment in entering this Agreement. The parties further acknowledge that, except for those contained in Applicable Law, all statements or representations that heretofore may have been made by either of them to the other are void and of no effect, and that neither of them has relied thereon in its dealings with the other. To the extent that there is any conflict between the Applicable Law and this Agreement, this Agreement shall govern the parties’ respective rights and obligations.

13.9 Interpretation.

Each party to this Agreement has had an opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and negotiate revisions to the Agreement. Accordingly, neither party shall rely upon Civil Code Section 1654 in order to interpret any uncertainty in the meaning of the Agreement.

13.10 Recordation of Termination.

Upon completion of performance of the parties or termination of this Agreement, a written statement acknowledging such completion or termination shall be recorded by City in the Official Records of San Mateo County, California.

Signatures on the Following Page

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IN WITNESS HEREOF, the parties have executed this Agreement as of the Effective Date.

CITY:

CITY OF SAN MATEO,
a California charter city

By:

Alex Khojikian, City Manager

Dated: __________________________

DEVELOPER:

DTSM HOUSING, LLC , a Delaware limited
liability company

By:

Its:

Dated: __________________________

ATTEST:

________________________________
City Clerk

Dated: __________________________

APPROVED AS TO FORM:

____________________________________
Mazarin Vakharia
Assistant City Attorney

Dated: __________________________

PROPERTY OWNER:

MOORE TALBOT PARTNERS, LP
a limited partnership

By: __________________________
it's General Partner

By: __________________________

Dated: __________________________

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STATE OF CALIFORNIA )
)
COUNTY OF __________________ )

On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________________
Name: ______________________________
Notary Public

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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STATE OF CALIFORNIA )
)
COUNTY OF __________________ )

I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________________
Name: ______________________________
Notary Public

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STATE OF CALIFORNIA )
)
COUNTY OF __________________ )

I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________________
Name: ______________________________
Notary Public

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A-1-1

EXHIBIT A-1

LEGAL DESCRIPTION OF THE CITY PROPERTY

The real property referred to herein is that certain real property located in the City of San Mateo, County of San Mateo, State of California, described as follows:

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SAN

MATEO, COUNTY OF SAN MATEO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOTS 2, 3 AND 4, BLOCK 10, AS DELINEATED UPON THAT CERTAIN MAP ENTITLED "MAP OF THE TOWN OF SAN MATEO", FILED FOR RECORD IN THE

OFFICE OF THE RECORDER OF THE COUNTY OF SAN MATEO, STATE OF CALIFORNIA, ON JANUARY 24TH, 1867 IN BOOK 2 OF MISCELLANEOUS RECORDS, PAGE 95 AND A COPY ENTERED INTO BOOK 1 OF MAPS, PAGE 45.

APN: 034-179-050, JPN: 034-017-179-05.00, 034-179-060, JPN: 034-017-179-06.00

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A-2-1

Exhibit A-2
Developer Owned Property
The Land referred to herein below is situated in the City of San Mateo, County of San Mateo, State of California, and is described as follows:

LOT 5, BLOCK 10, AS DESIGNATED ON THE MAP ENTITLED, "MAP OF THE TOWN OF SAN MATEO, SAN MATEO COUNTY, CALIFORNIA", FILED IN THE OFFICE

OF THE RECORDER OF THE COUNTY OF SAN MATEO, STATE OF CALIFORNIA ON JANUARY 24, 1963 IN BOOK 2 OF MISCELLANEOUS RECORDS, AT PAGE 95, AND A COPY ENTERED IN BOOK 1 OF MAPS AT PAGE 45.

For conveyancing purposes only: APN 034-179-010

Real property in the City of San Mateo, County of San Mateo, State of California, described as follows:

LOT 6, BLOCK 10, AS DESIGNATED ON THE MAP ENTITLED, "MAP OF THE TOWN OF SAN MATEO, SAN MATEO COUNTY, CAL.", WHICH MAP WAS FILED IN

THE OFFICE OF THE RECORDER OF THE COUNTY OF SAN MATEO, STATE OF CALIFORNIA ON JANUARY 24, 1863 IN BOOK 2 OF MISCELLANEOUS RECORDS AT PAGE 95 AND A COPY ENTERED IN BOOK 1 OF MAPS AT PAGE 45.

APN: 034-179-020

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A-3-1

Exhibit A-3
Developer Leased Property

PARCEL ONE AS DESIGNATED ON THAT CERTAIN MAP ENTITLED, "PARCEL MAP NO. 325 LANDS OF MOORE FOR LOT MERGER PURPOSES FOR THE MERGER OF LOTS 1, 7 AND 8, BLOCK 10, AS SHOWN ON THE MAP ENTITLED, "MAP OF THE TOWN OF SAN MATEO, SAN MATEO COUNTY, CALIFORNIA," WHICH MAP WAS

FILED IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SAN MATEO, STATE OF CALIFORNIA ON FEBRUARY 11, 1991, IN BOOK 64 OF PARCEL MAPS AT PAGE

54. For conveyancing purposes only: APN 034-179-040 (Affects a portion of said land) and 034-179-030 (Affects a portion of said land)

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 16 Section Name: CONSENT CALENDAR Account Number: 10-1511 File ID: 26-11298 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: June 01, 2026
SUBJECT:

Boards and Commission Appointment Subcommittee — Appointment Recommendations RECOMMENDATIONS:

2. Appoint Alison Joly to the Library Board for a full term.

3. Appoint James Horsman to the Planning Commission for a full term, and place Seema Patel and Thomas Braham on a six-month eligibility list.

4. Appoint Carol Rael to the Senior Advisory Commission for a full term, place Dale Ritzo and Michael McCutchin on a six-month eligibility list.

5. Appoint Sigalle Michael and Kenyon "Mark" Lee to the Sustainability and Infrastructure Commission for a full term, and place Albert Wetter on a six-month eligibility list.

8. Appoint Shreyans J. and Elise H. as Youth Commissioners to the Library Board for a one-year term, and place and Aravind A. on a six-month eligibility list.

9. Appoint Jackson K. as a Youth Commissioner to the Park and Recreation Commission for a one-year term, and place Advika S., Zach S. and Katelyn L. on a six-month eligibility list.

10. Appoint Nektarios D. and Pranav S. as Youth Commissioners to the Senior Advisory Commission for a one-year term, and place Olivia Y. and Reed C. on a six-month eligibility list.

11. Appoint Advika S. and Zachary S. as Youth Commissioners to the Sustainability and Infrastructure Commission for a one-year term, and place Margaux T. and Oscar C. on a six-month eligibility list.

12. Appoint Talia F. and Taryn A. as Youth Commissions to the Civic Arts Commission for a one-year term, and place Naisha O. on a six-month eligibility list.

BACKGROUND:

Community Relations Commission:

On May 7, 2026, the Appointment Subcommittee to the Community Relations Commission, consisting of Mayor Loraine and Council Member Cwirko-Godycki, with Housing & Neighborhood Services Manager Rachel Horst advising, interviewed applicants to fill two vacancies on the Community Relations Commission. The Appointment Subcommittee interviewed the following applicants:

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CITY OF SAN MATEO
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Michelle Privitera
Charles Hansen
Andrea Caceres
Wendy McCall
Lucianne Latu
Jennifer Kim
The Appointment Subcommittee recommends the following actions:

Recommended Action Duration
Appoint Jennifer Kim to a full term June 10, 2026 through June 10, 2030 Appoint Charles Hansen to a full term June 10, 2026 through June 10, 2030 Place Lucianne Latu on an eligibility list in priority #1 Immediate through December 1, 2026 Place Wendy McCall on an eligibility list in priority #2 Immediate through December 1, 2026 Library Board Youth Commissioner:

On May 14, 2026, the Appointment Subcommittee to the Library Board, consisting of Mayor Adam Loraine and Council Member Diaz Nash, with City Librarian Rukshana Singh advising, interviewed applicants to fill two youth commissioner vacancies on the Library Board. The Appointment Subcommittee interviewed the following applicants:
Advika S.
Shreyans J.
Aravind A.
Elise H.
Brittan B.
Jackson K.

The Appointment Subcommittee recommends the following actions:

Recommended Action Duration
Appoint Alison Joly to a full term June 10, 2026 through June 10, 2030 Appoint Shreyans J. as a Youth Commissioner June 2, 2026 through June 2, 2027 Appoint Elise H. as a Youth Commissioner June 2, 2026 through June 2, 2027 Place Aravind A. on an eligibility list in priority #1 Immediate through December 1, 2026 Council provided direction on March 2, 2026 that only Commissioners who fell under the category of having served a partial term with less than one year expired, would be eligible to reappointment without interview. Alison Joly was the only serving commissioner who fell under this category and this is being recommended for reappointment for a full term.

Park and Recreation Commission:

On May 22, 2026, the Appointment Subcommittee to the Park and Recreation Commission, consisting of Mayor Loraine, and Council Member Newsom, with Parks and Recreation Community Services Manager Zachary Silva advising interviewed applicants to fill two seats on the Commission and one youth commissioner seat. The Appointment Subcommittee interviewed the following applicants:
Advika S.
Zach S.
Katelyn L.
Kevin Y.
Mara N.
Brady W.

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CITY OF SAN MATEO
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Dalia N.
Jackson K.
Tammie Pereira
Peter Wicher
Nicole Cleary
Ben Pahulu
Andrew Ryan
Mike Etheridge
Scott Lee
Michael Chrien
Robert Johnson
Cheryl Van
Roxanne Bahadurji
John Ulrich
The Appointment Subcommittee recommends the following actions:

Recommended Action Duration
Appoint Peter Wicher to a full term June 10, 2026 through June 10, 2030 Appoint Mike Etheridge to a partial term June 10, 2026 through June 10, 2029 Appoint Jackson K. as a Youth Commissioner June 2, 2026 through June 2, 2027 Place Advika S. on an eligibility list in priority #1 Immediate through December 1, 2026 Place Zach S. on an eligibility list in priority #2 Immediate through December 1, 2026 Place Katelyn L. on an eligibility list in priority #2 Immediate through December 1, 2026 Planning Commission:

On May 27, 2026, the Appointment Subcommittee to the Planning Commission, consisting of Mayor Loraine, Deputy Mayor Fernandez, Council Members Cwirko-Godycki and Newsom with Community Development Director Zach Dahl advising, interviewed applicants to fill vacancies on the Commission. The Appointment Subcommittee interviewed the following applicants:
Thomas Sanfilippo
Thomas O’Connor
Thomas Braham
James Horsman
Stephen O’Neill
Seema Patel
The Appointment Subcommittee recommends the following actions:

Recommended Action Duration
Appoint James Horsman to a full term June 10, 2026 through June 10, 2030 Place Seema Patel on an eligibility list in priority #1 Immediate through December 1, 2026 Place Thomas Braham on an eligibility list in priority #2 Immediate through December 1, 2026 Senior Advisory Commission:

On May 21, 2026, the Appointment Subcommittee to the Senior Advisory Commission, consisting of Mayor Loraine and Deputy Mayor Fernandez, with Parks and Recreation Community Services Manager, Zachary Silva advising, interviewed applicants to fill one vacancy on the Commission and two youth commissioner seats. The Appointment Subcommittee interviewed the following applicants:

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CITY OF SAN MATEO
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Nektarios D.
Pranav S.
Reed C.
Olivia Y.
Dale Ritzo
Lee Campbell
Carol Rael
Michael McCutchin
Christina Galletti
John Ulrich
The Appointment Subcommittee recommends the following actions:

Recommended Action Duration
Appoint Carol Rael to a full term June 10, 2026 through June 10, 2030 Place Dale Ritzo on an eligibility list in priority #1* Immediate through December 1, 2026 Place Michael McCutchin on an eligibility list in priority #2* Immediate through December 1, 2026 Appoint Nektarios D. as a Youth Commissioner June 2, 2026 through June 2, 2027 Appoint Pranav S. as a Youth Commissioner June 2, 2026 through June 2, 2027 Place Olivia Y. on an eligibility list in priority #1* Immediate through December 1, 2026 Place Reed C. on an eligibility list in priority #2* Immediate through December 1, 2026 Sustainability and Infrastructure Commission:

On May 26, 2026, the Appointment Subcommittee to the Sustainability and Infrastructure Commission, consisting of Mayor Loraine, Deputy Mayor Fernandez, and Council Members Cwirko-Godycki and Newsom, with Public Works Director Matt Fabry advising, interviewed applicants to fill two vacancies on the Commission and two youth commissioner seats.

The Appointment Subcommittee interviewed the following applicants:
Advika S.
Maanyaa M.
Oscar C.
Zachary S.
Chase W.
Natalie D.
Margaux T.
Aidin Sarabi
David Chan
Kay Funk
Sigalle Michael
Kenyon ‘Mark’ Lee
Albert Wetter
John Weinrich
The Appointment Subcommittee recommends the following actions:

Recommended Action Duration
Appoint Sigalle Michael to a full term June 10, 2026 through June 10, 2030 Appoint Kenyon ‘Mark’ Lee to a full term June 10, 2026 through June 10, 2030 Place Albert Wetter on an eligibility list in priority #1 Immediate through December 1, 2026 Appoint Advika S. as a Youth Commissioner June 2, 2026 through June 2, 2027 Appoint Zachary S. as a Youth Commissioner June 2, 2026 through June 2, 2027

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Place Margaux T. on an eligibility list in priority #1 Immediate through December 1, 2026 Place Oscar C. on an eligibility list in priority #2 Immediate through December 1, 2026 Civic Arts Commission:

On May 22, 2026, the Appointment Subcommittee to the Civic Arts Commission, consisting of Council Member Cwirko- Godycki and Council Member Diaz Nash, with Community Development Department Business Manager Jen Rosas advising, interviewed applicants to fill five vacancies on the Commission and two youth commissioner seats. The Appointment Subcommittee interviewed the following applicants:
Mara N.
Taryn A.
Talia F.
Marni Gerber.
Aravind A.
Brittan B.
Elise H.
Naisha O.
Vaughn B.
Linda Druell
Michael Chrien
Selena Mak
Clarke Robinson
Larisa Vaserman
Stephen Tabler
Sue Ping Shyy
Recommended Action Duration
Appoint Alison Ho to a term to be determined To be determined at the first meeting of the Commission.

Appoint Linda Druell to a term to be determined To be determined at the first meeting of the Commission.

Appoint Clarke Robinson to a term to be determined To be determined at the first meeting of the Commission.

Appoint Michael Chrien to a term to be determined To be determined at the first meeting of the Commission.

Appoint Stephen Tabler to a term to be determined To be determined at the first meeting of the Commission.

Place Sue Ping Shyy on an eligibility list in priority #1 Immediate through December 1, 2026 Appoint Talia F. as a Youth Commissioner June 2, 2026 through June 2, 2027 Appoint Taryn A. as a Youth Commissioner June 2, 2026 through June 2, 2027 Place Naisha O. on an eligibility list in priority #1 Immediate through December 1, 2026 The initial term of each Civic Arts Commissioner will be determined by lot at their first meeting, as defined in San Mateo Municipal Code 2.22.010:
“Each member of the Civic Arts Commission shall serve at the pleasure of the Council and for a term of four years or until the appointment of a successor, except that the initial terms of the first members appointed shall be determined by lot at their first meeting so that each year at least one term will expire”.

Measure S Oversight Committee, Personnel Board, and Mosquito and Vector Control District Board:

The City Council’s adopted rules and procedures call for a minimum of three applicants per vacancy. Because fewer than three applications were initially received for the Measure S Oversight Committee, Personnel Board, and Mosquito and Vector Control District Board vacancies, the City Clerk was required to extend the recruitment period. The minimum number of applications has now been received, and staff anticipates returning to the City Council with additional appointment recommendations at the June 15, 2026 Regular Meeting.

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Recruitment Analysis:

This year’s annual Boards and Commissions recruitment marks the third full implementation of the City Clerk’s Office’s Outreach Success Plan, an initiative designed to expand public engagement and diversify the applicant pool. The 2026 Boards and Commissions recruitment cycle received 101 total applications, representing the second-highest application total since 2021 and continuing the strong participation levels established in 2025. Total applications increased significantly from 60 applications in 2024 to more than 100 applications in both 2025 and 2026, reflecting sustained community interest in civic engagement opportunities. Youth engagement saw substantial growth, with Youth Commissioner applications increasing from 20 in 2025 to 38 in 2026, nearly doubling year over year.

Key to this success was the launch of a targeted digital advertising campaign, including strategic social media placements and audio content, to raise visibility and drive traffic to the Boards and Commissions application portal. In tandem, the Clerk’s Office expanded its direct outreach to community-based organizations, ensuring that information about civic service opportunities reached a broader and more representative cross-section of San Mateo residents. The table below shows applications received per advisory body between 2021 and 2026.

BUDGET IMPACT:

There is no budgetary impact from this administrative action.

ENVIRONMENTAL DETERMINATION:

These appointment recommendations are not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Boards, Commissions and Committees List

STAFF CONTACT
Martin McTaggart, City Clerk
[email protected]
(650) 522-7042
Number of ApplicationsBoard or Commission 2021 2022 2023 2024 2025 2026 Sustainability and Infrastructure Commission 9 8 - 6 13 7 Library Board 10 - 8 10 17 -
Community Relations Commission 6 5 - 9 14 6
Park and Recreation Commission 4 - 4 15 10 12
Planning Commission 6 - - 12 13 6
Senior Advisory Commission 3 0 3 7 7 6
Personnel Board 4 - 2 - 5 4
Measure S Oversight Committee - - 5 - 8 9
Mosquito and Vector Control District - - - 1 - 4
Civic Arts Commission 9
Youth Commissioner 20 38
Total Applications 41 13 22 60 107 101

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Boards, Commissions & Committees List

Updated 05/1/2026

Term
Date
Appt’d
Term
Expires

COMMUNITY RELATIONS COMMISSION (650) 522-7220
Meeting: 3rd Wednesday, 7:00 p.m. City Hall (Room C)

1 Sheri Boles 07-19-21 06-10-26
1 Lamoin Werlein-Jaén 06-10-25 06-10-29
0 Jennifer Kim, Vice Chair 06-17-24 06-10-26
2 Jerold Nugent 06-10-20 06-10-28
1 Alli Fitzgerald, Chair 01-17-23 06-10-28

Term
Date
Appt’d
Term
Expires
PLANNING COMMISSION (650) 522-7212
Meeting: 2nd & 4th Tuesdays, 7:00 p.m. Council Chambers

1 Maxwell Schaumkel 06-10-25 06-10-29
1 Caiti Busch 06-10-25 06-10-29
1 Seema Patel, Chair 06-10-21 06-10-26
2 Margaret Williams 07-15-19 06-10-27
1 Adam Klafter, Vice Chair 06-17-24 06-10-28

PARK AND RECREATION COMMISSION (650) 522-7400
Meeting: 1st Wednesday, 7:00 p.m. City Hall (Room C)

2 Vacant 06-10-21 06-10-29
0 Regina Trapp 10-16-23 06-10-27
1 Sandra Kiapi 06-10-23 06-10-27
0 Peter Wicher, Chair 10-16-23 06-10-26
1 Sabrina Ocampo, Vice Chair 07-15-24 06-10-29
1 Maya Rae Osinki (YC) 03-02-26 03-02-27
1 Dahlia Anapolsky (YC) 06-02-25 06-02-26

PERSONNEL BOARD (650) 522-7260
Meeting: 3rd Tuesday, 7:00 p.m. City Hall (Room C)

2 Debra Kaiser 06-10-21 06-10-29
1 Sally Porush 06-10-25 06-10-29
2 Gayle Murphy 07-20-15 06-10-26
1 Elizabeth DeWinter, Vice Chair 06-10-23 06-10-27
2 Tony Villanueva, Chair 01-19-21 06-10-28

SENIOR ADVISORY COMMISSION (650) 522-7400
Meeting: 2nd Monday, every other month beginning in January 4:00 p.m. San Mateo Senior Center

1 Thomas Lease 04-17-23 06-10-29
0 Anna Cwirko-Godycki, Vice Chair 02-05-24 06-10-27
1 Karl Lorenz 06-10-24 06-10-28
2 Ellen Wang, Chair 07-20-20 06-10-28
0 Susan Rowinski 06-02-25 06-10-26
1 Pranav Sathish (YC) 06-02-25 06-02-26 1 Ellie Chiu (YC) 06-02-25 06-02-26

SUSTAINABILITY & INFRASTRUCTURE (650) 522-7153

COMMISSION
Meeting: 2nd Wednesday, 7:00 p.m. Council Chambers

1 Kimi Narita, 04-05-21 06-10-27
1 Sigalle Michael, Chair 08-15-22 06-10-26
1 Edward “Rich” Kranz, Vice Chair 06-17-24 06-10-28
2 Clifford S. Robbins 08-06-18 06-10-26
1 Jean-Paul Renaud 06-10-25 06-10-29
1 Zachary Scott (YC) 06-02-25 06-02-26 1 Advika Singh (YC) 06-02-25 06-02-26 LIBRARY BOARD (650) 522-7802
Meeting: 4th Monday, 5:30 p.m. Main Library Cedar Rm.

1 Richard Wysong, Vice President 06-10-23 06-10-27
1 Sheila Canzian 04-17-23 06-10-29
1 Wendy McCall, President 04-17-23 06-10-28
0 Alison Joly 06-30-25 06-10-26
1 Annie Tsai 06-17-24 06-10-29
1 Erin Finn (YC) 06-02-25 06-02-26 1 Oliver Baker (YC) 06-02-25 06-02-26

MOSQUITO & VECTOR CONTROL DISTRICT
(650) 573-8358

1 Tolifili Fa 10-07-24 10-07-26
YOUTH ACTIVITIES COUNCIL (YAC) (650) 522-7472
Meets twice a month, Coordinator: Sergio Contreras

Youth from the following schools represent the voice of San Mateo teens:

Aragon – Hillsdale – Serra – San Mateo

0 = appointed to unscheduled opening, eligible to serve a first full term 1 = in first term currently
2 = in second (final) term currently
YC = Youth Commissioner
Board and Commission Members are appointed by the City Council. To apply for future vacancies, or for further information, please contact the City Clerk. Members serve a four-year term of office. Qualifications: Registered Voter of the City of San Mateo.

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Term
Date
Appt’d
Term
Expires

MEASURE S OVERSIGHT COMMITTEE (650) 522-7040
Meeting: 3rd Tuesday of the 2nd month of the quarter (February, May, August, November) at 6:00 p.m. City Hall (Room C)

1 Sandy Shepler, Vice Chair 04-17-23 06-10-28
0 Karen Moen, Chair 04-17-23 06-10-26
1 Stephen Mayer 06-10-25 06-10-29
0 William Yang 04-17-23 06-10-26
0 Vacant 06-02-25 06-10-27

CIVIC ARTS COMMISSION (650) 522-7164
Meeting: 2nd Monday, every other month beginning in January, 4:00 p.m. City Hall (Room C)

Robert Gooyer, Vice Chair
Seema Patel
Stephen Tabler, Chair
Dianne Whitaker
Vacant

INVESTMENT ADVISORY COMMITTEE (650) 522-7100
Meeting: 3rd Thursday of Jan/Apr/Jul/Oct at 3:30 p.m., City Hall (Room C)

Jeff Adams
Michael Carney
Chris deLong
Margaret Taylor, Chair

Board and Commission Members are appointed by the City Council. To apply for future vacancies, or for further information, pl ease contact the City Clerk. Members serve a four-year term of office. Qualifications: Registered Voter of the City of San Mateo.

/s/ MARTIN MCTAGGART, CITY CLERK

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1 Alby Calles
From:

Sent: Monday, June 1, 2026 2:34 PM
To: City Council (San Mateo)
Cc:

Subject: Consent Calendar Item16, Boards and Commission Appointment Subcommittee - Appointment Recommendations
Honorable Mayor and Councilmembers,
Social media is abuzz of why Seema Patel was not recommended for immediate reappointment to the Planning Commission by the selection committee, comprised of all members of the current city council except for Lisa Diaz Nash.

The outcry from her supporters that it was a political move was expected by anyone and everyone who has paid attention to city politics during and since the Lee era. Clearly those who beneﬁt from the bias Patel has openly touted are quite unhappy.

Her sycophant pawns continue to employ the toxic rhetoric she is known for.

Simply put, it isn’t political:
1 - Patel isn't qualiﬁed, per the city’s own criteria, to be on the Planning Commission because of her publicly ﬂouted bias (Prominent featuring on her social media postings at the “YIMBY Prom” and HLC’s 2022 Housing Leader Awardee, etc.) She should never have been appointed to a seat. THIS alone is makes the recommendation to not reappoint required.
2- Patel’s behavior, which many consider an obnoxious tyrant, and her documented insults and demeaning of those who oppose her, are perhaps subjective. However, they are contrary to the city’s Code of Conduct. That she has avoided some of her outlandish behavior since the enforceable rules have taken eƯect does not excuse the behavior. Her proxies do well in speaking for her. 3- She was critically outspoken regarding Trina Pierce, an older black woman and single mother, struggled with destructive tenants living in her mother's home and was treated horribly by city staƯ who botched the investigation into housing complaints. This council felt the investigation was so ﬂawed that it voted to grant Ms. Pierce her appeal. Patel’s apparent proxies, mainly upper middle class white males, continue to attack Pierce who they refer to as the “landlord". The continue to spread the toxicity observed to be the hallmark of Seema Patel.

That Patel is listed as eligible (#2), and next in line for appointment if there is a vacancy on the Planning Commission during the next six months, is inexplicable. This is what is political, not that she was selected for immediate appointment.

We pray for the good health of the current commissioners and their willingness to continue serving the community.

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2 Dave Cohen
San Mateo Resident

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1 Alby Calles
From: sean schochet
Sent: Saturday, May 30, 2026 4:13 PM
To: City Council (San Mateo)
Subject: Seema Patel - Planning Commission
Dear Council Member,

Seema has done a great job and I trust her to continue to do excellent work for the things I care about.

Please reappoint her to continue a positive and sustainable vision for San Mateo.

Thank you,
Sean

Sent from Yahoo Mail for iPhone

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1 Alby Calles
From: Erin Leydig Stallings
Sent: Thursday, May 28, 2026 9:32 AM
To: City Council (San Mateo)
Subject: Strong Support for Seema Patel’s Reappointment to the Planning Commission Dear Mayor and Members of the City Council,

I am writing to express my strong support for Seema Patel's reappointment to the San Mateo Planning Commission. Over the past five years, Seema has proven to be an exceptionally dedicated public servant, guiding our city through some of its most complex and consequential land-use policies with a steady, objective hand.

What sets Seema apart is her analytical rigor and deep subject matter expertise. Whether she is reviewing the Cycle 6 Housing Element, updating the ADU Ordinance, or meticulously cross-checking parcel data to expand the Housing Opportunity Overlay District, she brings a data-driven, problem-solving mindset to the dais. She consistently dives into the granular details to ensure every policy practically serves San Mateo's future.

Furthermore, Seema possesses the exact temperament our city needs right now. She navigates highly charged community conversations with respect and a collaborative spirit, always balancing state mandates with the vision outlined in our General Plan. By carefully listening to public input and relying on objective standards, she consistently makes decisions that benefit the entire community rather than narrow interest groups.

Seema’s proven leadership as Chair and her unwavering commitment to our city's balanced growth make her an invaluable asset to the Commission. I strongly urge you to reappoint her for a second term.

Sincerely,

Erin Stallings

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 17 Section Name: OLD BUSINESS Account Number: 10-4661-01 File ID: 26-11204 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 01, 2026
SUBJECT:
2026 Transportation Program Annual Review — Progress Update RECOMMENDATION:

Receive the 2026 Transportation Program Annual Review, summarizing progress on ongoing transportation plans and initiatives, key project updates, and performance metrics.

BACKGROUND:

This presentation represents the second annual transportation program update in accordance with City Council Priority #5:

Conduct an Annual Transportation Review of progress on all ongoing plans, including project updates and key metrics such as City mode share, collision, and safety data. Key metric data presented are for calendar year 2025, with project status updates for fiscal year (FY) 2025-26 and accurate as of May 2026.

The City's transportation network consists of 200+ centerline roadway miles, 90 traffic signals, 7,000+ streetlights, 380+ miles of sidewalk, 8 downtown parking garages/lots, 80+ bridges, 60+ miles of bike infrastructure, 3 Caltrain stations, and an estimated 190 SamTrans bus stops. The City’s 2024 Local Roadway Safety Plan (LRSP) utilized a data-driven approach to identify high priority safety improvements throughout the City. The 2020 Bicycle Master Plan (BMP) reflects the City’s full vision for an interconnected and safe multimodal network. The 2012 Pedestrian Master Plan helped identify over $215M of pedestrian improvement projects, $200M of which are lighting projects. The 2022 Transit Oriented Development (TOD) Pedestrian Access Plan is aimed at improving pedestrian access in and around TOD areas, like Bay Meadows. In addition, several policies in the General Plan’s Circulation Element emphasize the promotion and enhancement of the City’s strategic transportation programs.

The Transportation Division within the Department of Public Works manages four strategic programs: Safety, Active Transportation, Vehicle Congestion Management, and Parking, each reviewed below with key metrics. Staff will also provide more detail on each of these programs in a presentation to Council.

SAFETY
GOAL: The City seeks to enhance the safety of all road users by implementing evidence-based strategies, including improved roadway designs, implementation of a multi-modal network, advanced traffic calming measures, and targeted education campaigns to promote safe driving, cycling, and pedestrian behaviors. KEY GUIDING DOCUMENTS: Guiding documents include the 2024 Local Roadway Safety Plan and the Safe Routes to School Strategic Plan. Relevant General Plan Circulation Element policies include C1.3 (Vision Zero), C1.5 (El Camino Real Pedestrian Safety), and C5.4 (At-Grade Rail Crossings).

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KEY METRICS:

Collision data is sourced from the Transportation Injury Mapping System (TIMS), a platform developed by UC Berkeley's Safe Transportation Research and Education Center (SafeTREC) that provides access to California crash data from the Statewide Integrated Traffic Records System (SWITRS). This is a statewide database to which the City of San Mateo submits its collision records. Additional collision data is publicly available through the San Mateo Police Department's Data Transparency Portal at cityofsanmateo.org/4451/Data-Transparency. It should be noted that this data reflects reported collisions only and does not capture near-miss incidents. oTotal collisions: 224 in 2024 → 197 in 2025 (-12% Year Over Year (YOY); -18% vs. 3-year prior period average)
oFatal collisions: 2 in 2024 → 1 in 2025 (-50% YOY)
oSevere injury collisions: 9 in 2024 → 13 in 2025 (+44%) oMinor injury collisions: 213 in 2024 → 183 in 2025 (-14% YOY) oPedestrian-involved collisions: 39 in 2024 → 34 in 2025 (-13% YOY) oBicyclist-involved collisions: 31 in 2024 → 25 in 2025 (-19% YOY) oVehicle-involved collisions: 154 in 2024 → 138 in 2025 (-10% YOY) oMost common collision type: Broadside/T-bone (29% in 2024 → 30% in 2025), followed by rear-end (19% → 18%)
oAge of those involved in collisions: Consistent across both years → 80% ages 15–64, 14% ages 65+, 7% ages 14 and under
oTraffic Calming: 145 requests in 2025 (+14% since 2024) •PLANNING EFFORTS IN PROGRESS: In accordance with the 2026/27 Proposed City Council SMART Activity, staff plan to revise the Neighborhood Traffic Management Plan to streamline the application and approval process, increase installation of traffic calming measures, and improve transparency for applicants. 2025-26 PROJECT ACHIEVEMENTS:
oQuick Build Safety Program: Delivers fast, low-cost, high-impact safety improvements to streets. The goal is to dramatically reduce injuries and fatalities by implementing proven safety treatment in weeks or months instead of years.
12 active quick build projects
3 capital improvement projects with critical quick build gap funding oCompleted
B Street Pedestrian Scramble (1 st – 3rd Avenue)
Downtown Parking Garage Pedestrian Safety Project
High Voltage Conversion Phase 5
Poplar/Humboldt Intersection Safety Improvement
oIn Design
Hillsdale/Alameda Intersection Safety Improvement
Hillsdale High School/31 st Avenue Safe Routes to School High Voltage Conversion Phase 4
Local Roadway Safety Plan Priority Package 1
oPlanning
Citywide Speed Survey Renewal
Safe Routes to School Program Strategic Plan
oVarious
All Bike San Mateo Program Projects

ACTIVE TRANSPORTATION
GOAL: The City seeks to enhance active transportation by supporting walking, biking, and transit through safe and connected infrastructure. Active transportation reduces congestion by shifting trips away from cars, which decreases the number of vehicles on the road, especially for short trips that often make up a significant portion of

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urban traffic.
•KEY GUIDING DOCUMENTS: Guiding documents include the City’s BMP, Pedestrian Master Plan, and TOD Pedestrian Access Plan. In addition, relevant General Plan Circulation Element policies include C1.1 (Sustainable Transportation), C1.2 (Complete Streets), C1.4 (Prioritize Pedestrian and Bicycle Mobility Needs), C3.1 (Pedestrian Network), C4.1 (Bicycle Network), C4.2 (Bicycle Master Plan), C4.3 (First- and Last-Mile Connections), C5.1 (Transit Ridership and Frequency), C5.2 (Caltrain and SamTrans), C5.3 (California High-Speed Rail), and C5.5 (Transit Improvements).
•PLANNING EFFORTS IN PROGRESS: The City is working on the development of a citywide Complete Streets Plan, which will not only help identify a comprehensive list of multimodal infrastructure projects but will also consolidate several of the City’s other transportation-related planning efforts, to ensure that improvements identified are packaged for coordinated implementation. The North Central Complete Streets Plan (NCCSP), also under development, is planned to be consolidated with the Complete Streets Plan. •KEY METRICS:
o170+ bicycle projects identified in the BMP; representing $40M+ in needed improvements o8.33 miles of high/medium high priority bike infrastructure completed (21.7% of the 38.4-mile target);

3.61 miles in progress
o54 curb ramps constructed in 2025
o4,100+ sq. ft. of sidewalk repaired in 2025
o≈31% of non-lighting pedestrian projects and ≈24% of lighting projects are completed •2025-26 PROJECT ACHIEVEMENTS:
oComplete
3 rd and Norfolk Intersection Safety Improvement Project Pavement Management Projects: Campus Drive Class II (Bike Lanes), South B Street, South Grant Street Bicycle Boulevard, Highland Bicycle Boulevard
oUnder Construction
Delaware Safe Routes to School Corridor Bike Improvement Pavement Management Projects: 5 th Avenue Class II, Laurel Ave Class II, 9th Ave Class II, Norfolk Street Class II, Bridgepoint Parkway Class II, Delaware Street Class II Buffered Bike Lanes, Peninsula Ave Class II Buffered Bike Lanes
oIn Design
19th Avenue Fashion Island Complete Streets
28th Avenue Gap Closure
Downtown Caltrain North Access
Humboldt Bike Lanes Alternatives Phase II
Pavement Management Project: West 3rd Ave Class II
oPlanning
Complete Streets Plan/North Central Complete Streets Plan Peninsula Corridor Complete Streets

VEHICLE CONGESTION MANAGEMENT
•GOAL: The Vehicle Congestion Management Program (VCMP) optimizes traffic flow and reduces congestion through intelligent signal systems, real-time monitoring, and promotion of alternative travel modes, minimizing delays, lowering emissions, and improving mobility for residents and commuters. •KEY GUIDING DOCUMENTS: Relevant General Plan Circulation Element policies include C2.1 (TDM Requirements), C6.1 (Roadway Operations), C6.2 (Circulation Improvement Plan), C6.3 (Local Transportation Analysis), C6.4 (Operations Analysis for Development Projects), C6.5 (Neighborhood Traffic), and C6.8 (Emergency Signal Preemption).

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•PLANNING EFFORTS IN PROGRESS: Staff has a number of internal procedures and policies aimed at guiding analysis of upcoming development projects. New traffic measures include but are not limited to a streamlined process Traffic Impact Analysis (TIA), clear local TIA modeling guidelines, increased professional traffic consultant support, and a Construction Management Plan.
•KEY METRICS:
oHillsdale Blvd (El Camino Real to Norfolk): ~2 min avg. afternoon peak travel time (2024 and 2025), ~8,100 vehicles (2024) → ~8,325 vehicles (2025), +3% volume
o3rd/4th Avenue (B St to Norfolk): ~3 min avg. afternoon peak travel time (2024 and 2025), ~6,200 vehicles (2024) → ~6,100 vehicles (2025), -1.6% volume change
o19th Ave/Fashion Island (Delaware to Norfolk): ~3 min avg. afternoon peak travel time (2024 and 2025), ~4,000 vehicles (2024) → ~4,400 vehicles (2025), +10% volume •2025-26 PROJECT ACHIEVEMENTS:
oComplete
3rd and Norfolk Intersection Safety Improvement Project oIn Design
Hillsdale/Alameda Traffic Signal Intersection Safety Improvement 19th Avenue/Fashion Island Traffic Signal Coordination Norfolk Fashion Island Intersection Optimization
oOngoing
Citywide Traffic Controller Upgrade
Citywide Video Detection System Upgrade
Citywide Traffic Signal Retiming
Traffic Management Center

PARKING MANAGEMENT
•GOAL: The City seeks to enhance the efficiency and accessibility of parking resources by implementing data-driven strategies, real-time parking availability systems, and prioritized allocation for high-demand areas to optimize space utilization and reduce congestion caused by circling vehicles. The program aims to improve the user experience, support economic development, and contribute to a more organized and environmentally conscious urban mobility framework.
KEY GUIDING DOCUMENTS: Relevant General Plan Circulation Element policies include C7.1 (Parking Management), C7.2 (Shared Parking), C7.3 (Public Parking), C7.4 (Bicycle Parking), C7.5 (Curbside Management), and C7.6 (Loading for New Development).
KEY METRICS:
o2,600+ residential parking permits processed
o12,000+ downtown parking permits issued in 2025 (up from ~7,286 in 2024) oPeak downtown garage utilization: 90% at Main Street and Central garages on weekends oMonthly permit utilization at 100% capacity: Tennis Court and Transit Center garages o65% of downtown parking revenue is now digital (42% credit card, 23% mobile payment) o2025 total parking revenue: ~$3.55M (vs. ~$3.37M in 2024) PLANNING EFFORTS:
oThe City is pursuing four initiatives to modernize its parking programs: streamlining residential permit renewals through digital permits to reduce paper usage; upgrading downtown meter infrastructure with next-generation solutions; evaluating the Residential Parking Permit Program (RPPP) to improve transparency, effectiveness, and sustainability; and conducting a Citywide Parking Study to analyze occupancy, fees, and infrastructure citywide.

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BUDGET IMPACT:

There is no budget impact associated with this informational update.

ENVIRONMENTAL DETERMINATION:

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Draft Presentation
Per Council direction received during the last discussion of this item, staff has included the presentation in advance of the meeting on June 1st.

STAFF CONTACT
Jay Yu, Engineering Manager
[email protected]
(650) 522-7323

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Annual
Transportation
Review
(City Council Priority #5)
June 1, 2026
Jay Yu, P.E.

Engineering Manager
Public Works Department
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Agenda
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I. Transportation Network
II. Safety
III. Active Transportation
IV. Vehicle Congestion Management
V. Parking Management
VI. Challenges

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I. Transportation Network
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What is included in the transportation
network?
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General
Plan
Goals
Objectives
Policies
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Circulation Element
C1.1 – Sustainable Transportation
C1.2 – Complete Streets
C1.4 – Prioritize Pedestrian and Bicycle
Mobility Needs
C3.1 – Pedestrian Network
C4.1 – Bicycle Network
C4.2 – Bicycle Master Plan
C4.3 – First and last Mile Connections
C5.1 – Transit Ridership and Frequency
C5.2 – Caltrain and SamTrans Support
C5.3 – California High Speed Rail
C5.5 – Transit Improvements
C2.1 – TDM Requirements
C6.1 – Roadway Operations
C6.2 – Circulation Improvements
C6.3 – Local Transportation Analysis
C6.4 – Operations Analysis for Development Projects
C6.5 – Neighborhood Traffic
C6.8 – Emergency Signal Preemption
C7.1 – Parking Management
C7.2 – Shared Parking
C7.3 – Public parking
C7.4 – Bicycle Parking
C7.5 – Curbside Management
C7.6 – Loading for New Development
C1.3 – Vision Zero
C1.5 – El Camino Real Pedestrian Safety
C5.4 – Safet At-Grade Rail Crossings
Active Transportation
Safety Vehicle Congestion Management
Parking Management
15 Key Issues
2 of 3
Top key issues are
transportation related
#2 Safe and Accessible
Transit
#3 Traffic Congestion
6 Years of
Outreach
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2026 STRATEGIC PLAN
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Safe, Smart, Efficient
Transportation for All
Fund Smarter to
Build Faster.

Better transit.

Stronger connections.

SP-TG1
SP-TG2
SP-TG3

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More Balanced
Network
Vehicle Centric*
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*According to American Community Survey. Excludes w orking from home commuters. 2023 Data 2024 Data
~ 76%
~ 4%
~ 9%
~ 6%
~ 5%
~ 74%
~ 3%
~ 11%
~ 9%
~ 3%

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80 Bridges
7000+
Streetlights
8 Public Parking
Garages and Lots
Downtown
200+
Centerline
Roadway Miles
23+
Centerline Bike
Miles
90 Traffic Signals
380+
Sidewalk Miles
3 CalTrain Stations
190
Bus Stops
0 Bike Racks
Installed in 2025
70 EV Stations Installed in
City-Owned Facilities
2,693
Residential Parking
Permits Submitted
12,543
Downtown Parking
Permits Issued in a Year
1,423
On-Street Parking
Spaces Downtown
2,140
Off-Street, City-Owned
Parking Spaces Downtown
7 Private Parking
Facilities Shared-Use
1 Commuter Shuttle Route
(Hillsdale Commuter Shuttle)
City of San Mateo
13 Parking Control
Officers
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II. Safety Program
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Safety
2040 GP
Policies
• C1.3 – Vision Zero
• C1.5 – El Camino Real Pedestrian Safety
• C5.4 – Safet At-Grade Rail Crossings
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2026 Strategic Goal
Safe, Smart, Efficient Transportation for All
SP-TG1

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Bike San Mateo
Safe Routes to School
Program
Local Roadway Safety
Program
High Voltage
Streetlight Conversion
Program
Safety Programs
Citywide Traffic
Calming
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Quick-Build Safety

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CC #40
PMP
BMP
TODPAP
CC #39
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ACTIVE CIP SAFETY PROJECTS
Phase
Various
Planning
Planning
Planning
Design
Design
Design
Construction
Construction
Completed
Completed
Project

0. All Bike San Mateo Program Projects

1. Local Roadway Safety Priority Package 1

2. Citywide Speed Survey Renewal

3. Safe Routes to School Program

4. Hillsdale/Alameda Intersection Safety Improvement

5. Hillsdale High School/31 st Avenue Safe Routes to
School

6. High Voltage Conversion Phase 4

7. High Voltage Conversion Phase 5

8. Poplar/Humboldt Intersection Safety Improvement

9. B Street Pedestrian Scramble (1st – 3rd Avenue)

10. Downtown Parking Garage Pedestrian Safety Project
Grant Funding
Adopted Plan
City Council Priority
1 4
5 6
7 9
10 8

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TRAFFIC CALMING/GENERAL INQUIRIES
2024
*1 Year Average, Monday – Friday , PM Peak = 4:00PM – 6:00PM, AM Peak = 7:00AM – 9:00AM +14%
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❑ Traffic Calming Request
❑ Total Public Email Exchanges
❑ Time Spent on Email Response
❑ Time Spent Field Investigation
❑ Time Spent Admin. Duties
127
1,650+
1,000+ Hours
560 Hours
175 Hours
1,760+ Hours
2025
145
1,800+
1,100+ Hours
655 Hours
200 Hours
2,030+ HoursTotal Time Spent (est.)
+9%
+10%
+17%
+14%
+15%
Smart Activities Metric June 2027

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QUICK BUILD SAFETY PROGRAM
Goal is to dramatically reduce injuries and fatalities by implementing proven safety treatments in weeks or months instead of years Program Started
in 2024
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Program
Development
Controls
Draft/Develop
design guidelines
and tool kit
Establishing On-
Call Resources
2026
Evaluation and
Scaling
Maintenance and
Monitoring
refinement
12 Months
CIP Project
Timeline
Quick Build
Timeline
4 Months 4
Months
6 Months
Start Complete
70%
Reduction in
delivery
schedule
Planning
Design
Construction

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QUICK BUILD SAFETY PROGRAM
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Current
Process
City Staff
Planning and
Engineering
Evaluation and
Assessment
Design and
Engineering Implementation
City Staff
Planning and
Engineering
City Staff
O&M
Maintenance
City Staff
O&M
Future Process
City Staff
Planning and
Engineering
Evaluation and
Assessment
Design and
Engineering Implementation
On-Call
Transportation
Consultant
On-Call
Quick-Build
Specialist
Maintenance
City Staff
O&M
Maximize City staff
resources
Streamline
implementation
Increase delivery
as program ramps
up

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12+
Active QB Projects
3 CIP Projects with
Critical QB Gap
Funding
❑ 17th Avenue and El
Camino Real
❑ San Mateo Drive
and Monte Diablo
Ave.
❑ El Dorado 4th and
El Dorado 3rd
❑ Delaware Street
and State Street
❑ Delaware Safe Routes to
School Protected Bike
Lane
❑ Hillsdale Blvd. / ALDP
Intersection Safety
Improvement
❑ LRSP Priority Package 1

QUICK BUILD SAFETY PROGRAM
Active QB Projects
Critical QB Gap Funding
Example Project Locations

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In-Progress and
Funded
Local Roadway Safety Program
70%
Priority # Project Description Status
1 ECR / 22nd Ave 65% Design
2 ECR / 27th Ave 65% Design
3 Humboldt / Poplar Completed
4 Humboldt / Various 65% Design
5 Fashion Island Blvd / Norfolk St Fall 2027 CON
6 Hillsdale / Franklin & Norfolk St 65% Design
7 Peninsula / Delaware Oct 2026 CON
8 Eldorado St / 3rd Ave & Peninsula / Stanley FY27/28
9 Hillsdale Blvd - Saratoga Dr. to Norfolk Street FY27/28 10 ECR Corridor - 28th Avenue to 36th Avenue FY27/28
May 2024
Plan Adoption
Top-10 Priority Projects
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Slow for Students
Project
Citywide Speed Limit Program
CC #6
39 Corridors
Reduced
Speeds• Public and Private Schools
• Within 500 -1000 Feet of a School = 25mph
• Within 500 Feet of a School = 15mph
23 Schools
Citywide Speed Survey Renewal
Data
Preparation
Late
2026
Estimated
Completion
Now
1 2
Consultant
Selection
Speed
Survey
Certification
Process
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Safe Routes to School Program
SRTS Strategic Plan1
Start of Strategic
Plan
Summer 2027
Funding Request in
Annual Budget Cycle
Spring 2024
Completion of
Strategic Plan
Detail
Implementation
Plan
Summer 2025 Winter 2026
15+
Community
Engagement
Events
10 Informant
Interviews
Community Driven
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Delaware SRTS
Protected Bike
Lane
Design to
Construction
Alameda De Las
Pulgas/Hillsdale
Safety
Improvements
Design to Construction
Hillsdale/31st
Avenue SRTS
Secured $390K grant
funding
2 RECENT SRTS ACCOMPLISHMENTS

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2025 Safety Metrics
<1% Fatal (1)
7% Severe (13)
93% Minor (183)
34 / 17%25 / 13%
197 T otal Collisions
138 / 70%
60 / 30%
Broadside
(T-Bone)
35 / 18%
Rear End
32 / 28% Other
21 / 11%
Side Swipes
19 / 10%
Head On
6 / 3%
Object
65+15-64
7% 78% 14%
Severity Types
Vehicle Collision Types
Citywide Numbers
Age Split
<14
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*Collision data is from Transportation Injury Mapping System (TIMS) and excludes freeway collisions

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2025 Safety Metrics
Total Collisions
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*Collision data is from Transportation
Injury M apping System (TIMS)
2025 2024 3-Year PP Avg.
197
34 25
138
Fatal
Severe
Minor
Pedestrians
Bicyclist
Vehicle
1 13
183
240
48 26
165
1 15
224
224
39 31
154
2 9
213
YOY∆%
-12%
-13%
-19%
-10%
-50%
+44%
-14%
PP∆%
-18%
-30%
-5%
-16%
-25%
-11%
-18%
*
**
*Data from 2017, 2018 and 2019

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III. Active Transportation Program
To enhance active transportation by supporting walking, biking, and transit through safe and connected infrastructure.
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Active Transportation
2040
GP
Policies
• C1.1 - Sustainable Transportation
• C1.2 – Complete Streets
• C1.4 – Prioritize Pedestrian and Bicycle Mobility Needs • C3.1 – Pedestrian Network
• C4.1 – Bicycle Network
• C4.3 – First and last Mile Connections
• C5.1 – Transit Ridership and Frequency
• C5.2 – Caltrain and SamTrans Support
• C5.3 – California High Speed Rail
• C5.5 – Transit Improvements
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Safe, Smart, Efficient
Transportation for All
Better transit.

Stronger connections.

SP-TG1
SP-TG3
2026
Strategic
Goal

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Planning Infrastructure
2040 General Plan
Bicycle Master Plan
Pedestrian Master Plan
Complete Streets Plan
Transit Oriented Development
Pedestrian Access Plan
Bike San Mateo Program
Pedestrian Improvements
(Implemented by our Pavement
Management Program)
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CC #40
PMP
BMP
TODPAP
CC #39
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ACTIVE TRANSPORTATION PROJECTS
Phase
Planning
Planning
Design
Design
Design
Design
Construction
Complete
Complete
Complete
Complete
Project

0. Complete Streets Plan

1. Peninsula Corridor Complete Streets (High)

2. 19th Avenue Fashion Island Multimodal
Improvement (Med-High)

3. 28th Avenue Gap Closure (High)

4. Downtown Caltrain North Access

5. Humboldt Bike Lanes Alternative Phase II

6. Delaware Safe Routes to School Corridor
Bike Improvement (High)

7. 3rd and Norfolk Intersection Safety Improvement
Project (Med-High)

8. Campus Drive Class II

9. South B Street

10. South Grant Street Bicycle Boulevard
Grant Funding
Adopted Plan
City Council Priority
1 2
3 4
5 6
7 8
9 10

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CC #40
PMP
BMP
TODPAP
CC #39
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IN-PROGRESS PAVEMENT MANAGEMENT PROJECTS
Project ProposedBike
Facility
Priority in
Bike Master
Plan
Street Limits
PMP
Phase 4-A1
Class II Bike Lane
High 5th Avenue
El Camino Real
to Ellsworth
Avenue
S Claremont St
to S Delaware St
Part of
Existing
Network
Laurel Ave 7th Ave to 9th Ave
9th Ave S Humboldt to
S Amphlett Blvd
Norfolk St Darwin Ave
to Roberta Dr
Bridgepoint
Pkwy
Bridgepoint Cir
to Bridgepoint Cir
Class II Buffered
Bike Lane High Delaware St
Birch Ave
to Sunnybrae
Blvd
Class II Buffered
Bike Lane Med-Low Peninsula Ave Bayshore Blvd
to Airport Blvd
PMP
Phase 6-B Class II Bike Lane High West 3rd Avenue Dartmouth Rd to El Camino Real
Class II Bike
Lane
Class II
Buffered Bike
Lane
Class II
Buffered Bike
Lane
Class II Bike
Lane

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Bike San Mateo
170+
bicycle projects
identified in the
2020 BMP
$40M+
of projects
identified
60+
centerline miles
of bike
infrastructure
that need to be
improved
City Council Priority – Complete all High and Medium -High Priority projects in the 2020 Bicycle Master Plan
CC #40
BMP
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CC #40
BMP
58 High
38 Med-Low
43 Low
53%
Bike Lane on
Roadway
(Class II, IV, BBL)
35 Med-High
49% 21% 12%
47%
Bike Blvd or
Shared Use-
Path
51% 79% 88%
Projects
that don’t
reduce vehicle
lanes or
remove
parking
~48% ~63% ~79% ~88%
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Overall Network
CC #40
BMP
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Connectivity
Safety & Comfort
Equity
Ridership
Criteria

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High Med-High Priority Map
CC #40
BMP
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Connectivity
Safety & Comfort
Equity
Ridership
Criteria

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Progress
Complete all High and Medium -High
priority projects in the 2020 Bicycle Master
Plan and the Pedestrian Master Plan with
the goal of prioritizing quick -build projects
where feasible.

COMPLETED

21.7%~38.4 Miles of High and Medium-High
30 20
10 0 8.33 Miles Completed

3.61 Miles In-Progress
31%
All High and
Medium High
Projects

7.4%
60%
Med-High
Priority Projects
Are high
priority Projects
Target
Completed
In-Progress
Are Med-
High Priority Projects
40%
High Priority
Projects
CC #40
BMP
~11.4%
Completed
Med-Low and Low
In-Progress
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6.40 Miles Completed
2024

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Pedestrian Programs
300+
Non-lighting
projects
$15M+
non-lighting
projects
$200M+
lighting projects
60+
lighting projects
CC #40
PMP
~31%
Completed
~24%
Completed
4,100+
Number of sidewalk (SF)
repaired in 2025
54 Number of constructed
curb ramps 2025
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IV. Vehicle Congestion Management
(VCM) Program
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Vehicle Congestion
2040 GP
Policies
• C2.1 – TDM Requirements
• C6.1 – Roadway Operations
• C6.2 – Circulation Improvements
• C6.3 – Local Transportation Analysis
• C6.4 – Operations Analysis for Development Projects
• C6.5 – Neighborhood Traffic
• C6.8 – Emergency Signal Preemption
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Safe, Smart, Efficient
Transportation for All
Better transit.

Stronger connections.

SP-TG1
SP-TG3
2026
Strategic
Goal

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Planning Infrastructure Maintenance
and Operations
• Private Development:
• Streamlined Traffic
Impact Analysis (TIA)
• Clear local TIA modeling
guidelines
• Increased professional
traffic consultant support
• Construction
Management Plan
• 3rd and Norfolk Intersection
Safety Improvement Project
• Hillsdale/Alameda Traffic
Signal Intersection Safety
Project
• 19th Avenue/Fashion Island
Traffic Signal Coordination
• Norfolk Fashion/Island
Intersection Optimization
• Citywide Traffic
Controller Upgrades
• Citywide Video Detection
System Upgrades
• Citywide Traffic Signal
Retiming
• Traffic Management
Center
CC #39
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Develop Responsibly
Housing Element
Adoption
May 2024
Increase in
development for the
foreseeable future
General Plan 2040
Adoption
March 2024
+
=
Streamlined Process Traffic
Impact Analysis (TIA)
Increased Professional Traffic
Consultant Support
Clear Local TIA Modeling
Guidelines
New Traffic Measures
Construction Management
Plan
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4,900+
7,000+
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Jan-25 Jan-26
Housing Units
(In the pipeline)
+43%

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Operational Efforts
Communication
Upgrade
Video Detection
System Signal Retiming Traffic Management
Center
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Major Corridors Travel Time
2025*
Hillsdale Blvd
ECR to Norfolk Street
3rd/4th Avenue
B Street to Norfolk Street
2024*
*1 Year Average, Monday – Friday, PM Peak = 4:00PM – 6:00PM, AM Peak = 7:00AM – 9:00AM 19th Ave/Fashion Island
Delaware to Norfolk
~2 min
~3 min
~3 min
Avg.

Travel Time
Avg.

Vehicle Volume
~8,325
~6,100
~4,400
PM Peak
PM Peak
PM Peak
Avg.

Travel Time
Avg.

Vehicle Volume
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~2 min
~3 min
~3 min
~8,100
~6,200
~4,000
PM Peak
PM Peak
PM Peak

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V. Parking Management Program
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Parking Management
2040 GP
Policies
• C7.1 – Parking Management
• C7.2 – Shared Parking
• C7.3 – Public parking
• C7.4 – Bicycle Parking
• C7.5 – Curbside Management
• C7.6 – Loading for New Development
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Safe, Smart, Efficient
Transportation for All
Better transit.

Stronger connections.

SP-TG1
SP-TG3
2026
Strategic
Goal

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City-Owned
Downtown
Parking Facilities
8 Residential
Parking Permits
Issued
2600+
Private Shared
Downtown
Parking Facilities
7 Downtown Parking
Permits Issued in
2025
12000+
On-Street and
Off-Street
Parking Spaces in
the DT
3500+
Parking
Enforcement
Officers
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Downtown Parking Revenue
2025*
Cash
Card
Monthly Permits
2024*
*Calendar Year
PaybyPhone
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$410,000
$1,491,000
$745,000
$640,000
$373,000
$1,578,000
$820,000
$865,000
$3.4M $3.6MTotal
42%
23%
11%
24%
% T otal Revenue

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Residential
Parking
Permit Zones
16 Residential
Permits
Processed
2600+
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Residential
Permit
Program Calls
1500+
Residential
Permit
Program
Emails
250+
2025 New
Residential
Parking Permit
Zone Requests
5 Estimated 2025 Staff Hours: 12,500+
Residential
Permit
Program
Enforcement
Officers
6 Free Residential Parking
Permit Program

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2024 Downtown Parking Utilization
Weekday
Lunch
(11AM – 2PM)
Weekend
Dinner*
(6PM – 8PM)
70% 2nd and ECR

69% Central
62% Main Street
90% Main Street

71% Central
56% 4th and Railroad
76% Tennis Court

66% Central
56% Main Street
90% Central

90% Main Street
72% 4th and Railroad
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Garages

1. Tennis Court

2. 2nd and ECR

3. Transit Center

4. Main Street

5. Central

6. Kiku
Parking Lots

1. Fifth and B
Street

2. Fourth and B
Street
#1
#2
#3
#1
#2
#3
#1
#2
#3
#1
#2
#3*Outside of parking
enforcement timeframe

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Monthly Parking Permit Utilization
Tennis Court
2nd & ECR
2024
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100%
Transit Center
Main Street
Central
Kiku
South Railroad
2025
91%
27%
82%
96%
26%
58%
100%
100%
90%
79%
100%
62%
57%

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VI. Challenges
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~19%
$6.66M
2025 Transportation Funding
~84%
Transportation
CIP projects are
grant funded
100%
75%
50%
25%
0 Federal State County
~5%
$1.65M
~76%
$27.09M
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Types of Local Funds
• Traffic Impact Fee
• Measure A
• Measure S
• General Fund
~16%
$6.88M
$40M
$30M
$20M
$10M
0 Local Grants
~84%
$35.64M
$42.5M in active
CIP transportation
Projects
Fund Smarter to
Build Faster.

SP-TG2

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Grant Strategy: Tiered Pursuit Framework
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Tier 1:

Actively Pursue
Low burden l High Reward
• High awards
• No local match
• Minimal paperwork
Tier 2: Pursue Selectively
Balanced Grants
• Moderate awards
• Some local match
• Moderate paperwork
Tier 3: Lowest Priority
High Burden | Lower Reward
• Low awards • High local match • Heavy paperwork
Decision Factors
✓ Award size
✓ Local match requirement
✓ Administrative burden
✓ Project Readiness
✓ Grant Flexibility
✓ Project Fit

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San Mateo
is mostly built out.

Future developments
will be in-fill
developments
Limited Right-of-Way
#1
Most populated
City in San Mateo
County*
#4
Most dense City
in the County
with
8,300+ Residents
per square-mile*
48%
of all High and Medium
High Priority Bicycle
projects require either a
lane reduction or parking
removal
*2023 American Community Survey per Census.gov
~200 mile
(centerline)
~23 miles
(bike lanes centerline)
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Transportation and Private
Development
Planning and Engineering
Previous Staffing
Maintenance and
Operations
Filled
Vacant
Engineering
Manager (1)
Traffic
Engineering (5)
(1) Senior Engineer
(3) Associate Engineer
(1) Engineering Technician
Maintenance
Manager (1)
Traffic O&M (6)
(1) Maintenance Supervisor
(2) Traffic Safety Worker
(2) Traffic and Lighting Technician
(1) Maintenance Worker
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35 FTE
Transportation
Planning (3)
(1) Principal
Transportation Planner
(1) Associate
Transportation Planner
(.5) SRTS Coordinator
Private
Development and
Right-of-Way(7)
(1) Senior Engineer
(3) Associate Engineer
(2) Engineering
Technician
(1) Admin Technician

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Current Staffing
Maintenance and
Operations
Filled
Vacant
Engineering
Manager (1)
Traffic
Engineering (5)
(1) Senior Engineer
(3) Associate Engineer
(1) Engineering Technician
Maintenance
Manager (1)
Traffic O&M (6)
(1) Maintenance Supervisor
(2) Traffic Safety Worker
(2) Traffic and Lighting Technician
(1) Maintenance Worker
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35 FTE
Transportation
Planning (3)
(1) Senior
Transportation Planner
(1) Associate
Transportation Planner
(1) Assistant
Transportation Planner
Private
Development and
Right-of-Way(3)
(1) Senior Engineer
(3) Associate Engineer
(2) Engineering
Technician
(1) Admin Technician
Engineering
Manager (1)
Transportation
Planning and Engineering
Private Development
and Right-of-Way

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53 of 45
Active Transportation
CIP Projects
Active Safety
Projects
Ped/Bike PMP
Quick Build Projects
Parking and RPPP
Traffic Calming
2025 Active Project
Map

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2025 Transportation Key Take Away
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Safety
22 Active Safety
Projects
7 of 10 Active
LRSP Priority Projects
are Funded
Active
Transportation
11 Active CIP
Transportation
Projects
Completed ~22%
High and Med-High
BMP Network
Congestion
Management
Streamlined
transportation
reviews supporting
7,000+ housing
units
Major corridor travel
times are staying
relatively the same
Parking
Management
Parking occupancy
in downtown
remains strong,
even after 6pm
Demand and staff
resources for RPPP is
increasing
84% Transportation CIP projects are grant funded

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Thank You
Jay Yu P .E.

Engineering Manager
[email protected]
www.cityofsanmateo.org/publicworks
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1 Alby Calles
From: David Hunt
Sent: Monday, June 1, 2026 1:14 PM
To: City Council (San Mateo)
Subject: Annual Transportation Review and Climate Action Plan Progress Report — June 1, 2026 Hello council, a lot here but I tried to summarize up top here if you're short on time. I appreciate your time on these high-priority topics.

These two important agenda items read together reveal a gap. The Climate Action Plan Progress Report measures progress against the city's adopted 2024 Climate Action Plan, which establishes that on-road transportation is the city's largest and growing emissions source, making better travel alternatives a priority. The Transportation Review shows the city is giving away peak-demand parking for free while the highest-priority safety projects are stalled for lack of funding and staff. Right-pricing parking won't solve emissions on its own, but it is a logical local source to help fund the alternatives, and both items overlook the metric needed to track whether any of it works. The requests below connect them.

Summary of requests:

1. Study evening parking pricing. Downtown lots hit 90% occupancy at dinner while free. The city should ensure it keeps the majority of any new revenue working in downtown and dedicate a defined subset to Quick Build safety projects and other unfunded transportation safety projects in our extensive Master Plans.

2. Bring on-street occupancy data (lunch and dinner, by time of day) before setting pricing.

The city collected this for the 2014 Downtown Parking Management Plan and I believe has plans to do another parking study in the near future. Collecting this data should be explicitly included in that future study.

3. Track VMT in both reports. Neither the Transportation Review nor the Climate Action Plan Progress Report measures vehicle miles traveled, the variable the city's largest emissions source depends on.
——————————————————————————————————————
Mayor and Councilmembers,
Thank you to Public Works staff for a thorough review. My comment connects two items on tonight's agenda that the city presents as unrelated: the Annual Transportation Review and the Climate Action Plan Progress Report. The 2024 Climate Action Plan establishes that on-road transportation is the city's largest and growing emissions source and the Transportation Review shows the city giving away revenue and overlooking the metrics needed to understand climate progress.

Price evening parking, and use it to close the safety funding gaps.

The utilization slide shows downtown dinner-hour demand (6-8 PM) reaching 90% at the two main downtown garages, and the slide notes this is outside the parking enforcement window, meaning it is free. The key-takeaway slide presents this as a success: occupancy "remains strong, even after 6pm." But 90% occupancy at a price of zero is not a success. It is unpriced peak demand, which produces cruising for spaces, double-parking, and a less pleasant downtown, while leaving money on the table.

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2 Council should also ask staff to look beyond the garages and lots. The data presented covers off-street facilities, but the on-street spaces, the most convenient and sought-after, are likely fuller still at lunch and dinner. The city collected on-street oc
cupancy for the 2014 Downtown Parking Management Plan, so refreshing that data is no new lift, and pricing can't be set sensibly without it. The spaces drivers compete hardest for are exactly where pricing does the most good.

Downtown parking already generates roughly $3.6M a year, but the bigger win from right-pricing the busiest hours is a better downtown. Keeping a space or two open on every block means drivers find parking quickly instead of circling, which cuts congestion, idling, and the cruising and double-parking that create safety conflicts. It improves turnover so more customers reach businesses over an evening, rather than a few cars holding the best spaces for hours. And the revenue can be reinvested directly into the downtown people are paying to park in.

To be clear about how that revenue should be used: the majority should stay in the area it was collected, reinvested in the downtown parking program and in beautifying and improving the downtown itself. That is both good policy and what builds public support for pricing.A defined subset of the new revenue be dedicated to two things the Transportation Review itself flags as unfunded:
 Community engagement and design capacity for the high-priority projects that require reallocating street space.
 Further funding for supporting and implementing Quick Build solutions on our streets.  The three example CIP projects identified with "Critical QB Gap Funding," including the Delaware Safe Routes to School protected bike lane, the Hillsdale/Alameda intersection safety improvement, and LRSP Priority Package 1.

This matters because the highest-priority projects are the ones being deprioritized.

The Bicycle Master Plan slides sort projects by whether they "don't reduce vehicle lanes or remove parking." Only about 48% of High-priority projects avoid touching lanes or parking. Read plainly: nearly half of the High-priority projects, and a majority of the work overall, requires reallocating space, and the Challenges section frames that as a constraint rather than the core of the assignment. The progress slide confirms the result: only about 22% of the High and Med-High network is complete.

The presentation also identifies what is actually blocking these projects. It is not engineering. It is funding and staff capacity. The staffing slides show Transportation Planning positions downgraded and the half- time Safe Routes to School coordinator gone, and Private Development/Right-of-Way cut from seven positions to three. Priced evening parking is a logical, locally controlled source to help rebuild that capacity for the projects Council has already made a priority.

Finally, direct that VMT be tracked across both of these reports.

This is where the two items most need to talk to each other. The Progress Report includes no updated inventory or VMT measure, despite its own 2024 inventory naming on-road transportation as the largest emissions source. The Transportation Review, across 55 slides, likewise never measures VMT or ties transportation to climate targets, and its mode-share slide titled "More Balanced Network" actually shows walking and biking commute shares declining. Both count outputs, EV ports, bike-lane miles, grant dollars, but not whether driving is going down. We cannot manage what we do not measure.

Council should direct staff to add a per-capita VMT indicator to both reports going forward.

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3 In short: price the downtown parking that is currently free at peak demand, keep the majority of that revenue working in downtown while dedicating a defined subset to the safety and bike projects staff have flagged as unfunded, and track VMT in both the Transportation Review and the Climate Action Plan Progress Report so we know whether we are moving the needle.

Thank you for your time and for considering these requests. - Dave

David Hunt

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1 Alby Calles
From: Mike Swire
Sent: Monday, June 1, 2026 3:55 PM
Subject: Item 17 Transportation Review - detailed analysis & questions Hello SM Leaders,

Thank you for considering the state of transportation in SM. Here are some thoughts on the packet:

Agenda Report
 p. 2 - The crash figures seem much lower than what I currently see when I query TIMS. Is your query based on a SWITRS/TIMS query or is it based on the SMPD's website? TIMS shows:
o 384 total crashes instead of 197
o 2 fatalities instead of 1
o 18 severe injuries instead of 13
o 40 pedestrian crashes instead of 34
o 26 bike crashes instead of 25, etc.
o Regarding primary crash factors in TIMS - 40% unsafe speed, 15% improper turning, 8% DUI, etc.
o The City should not exclude crashes occurring in the City of SM on state highways, including 101, as the City can influence these routes. The City of SM did not object to the recent widening of US 101 in San Mateo, thereby encouraging more auto traffic and more crashes. The City can influence the 101/92 Direct Connector project, which could add many more cars to local streets and the highway.
 p. 2 - When will staff present its proposal for an improved traffic calming process/program? Will citizens have the opportunity to provide input before this proposal is finalized?  What were the 12 (or 15) quick build projects?
 p. 1 & 3 - What % of "bike infrastructure" actually provides a safety benefit? (vs. Class III/sharrows projects/mileage without traffic calming elements) (e.g., new South Grant and Highland "Bike Boulevards")
 p. 3 - What is the status of construction on the Delaware Safe Routes to School Project? There has been no recent activity here. Is this related to complaints from the ARCO gas station owner?  p. 4 - Auto congestion has increased in the past year. Why is this? Population and employment in the County have been steady for several years so these factors aren't to blame. Meanwhile, Caltrain and BART usage are down from pre-pandemic levels. Are more people driving because we widened 101?
 p. 4 - "The City seeks to enhance the efficiency and accessibility of parking resources". I am not sure what "efficiency" means here. Shouldn't we be optimizing parking resources? By enhancing accessibility, do we imply that we would never consider reducing parking supply regardless of demand or efforts to get people out of cars and into other modes of transportation? Every parking space we create or continue to maintain raises taxpayer costs, increases danger on our streets, and worsens air and climate pollution.
 p. 4 - Why did the number of downtown parking permits skyrocket this year? Is this good?

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2  p. 4 - You mention that parking utilization was high at two of our many garages (for very limited periods). What about the others? Are there garages that can be decommissioned to save taxpayer $ and add more housing?
 p. 4 - Monthly permit utilization is 100% at two garages. Is this good or bad? Why is this important?
 p. 4 - We quantify parking revenue. What about parking cost and net revenue? Do we make or lose money on parking? How can we improve net revenue? Draft Presentation
 p. 8 - Do we have 2025 mode shift data? This timeline doesn't align with the rest of the presentation?
 p. 8 - Why do we think ped and bike mode share is decreasing in SM? Are people scared to walk and bike? Have we made it easier for them to drive (through speed and parking)?  p. 14 - How are we currently managing traffic calming requests? Is this trackable in My San Mateo app?
 p. 17 - What is the definition of a quick build project? E.g., the Delaware Safe Routes to School project took several years (?) and had several public meetings.  p. 19 - Are we taking advantage of recent changes in State law to reduce speed limits in areas beyond schools? - business activity districts, "safety corridors", areas with high mix of vulnerable road users, rounding down from 85th percentile?
 p. 20 - What has happened to the SRTS Strategic Plan after its completion more than a year ago? There has been zero communication to the many community members who volunteered their time to this effort.
 p. 22 - What is the PP delta stat?
 p. 24 - Can we add "inexpensive" to the reasons we support active transportation? With the price of gas >$6 and new cars costing $50K, we need to make it safe for those who cannot afford a car.  p. 42 - Why is monthly parking discounted/subsidized? Why aren't we charging market rates? $65
public vs. $250 private????
 p. 44 - Why is residential permit parking program free? Taxpayers without cars are subsidizing people with cars?
 p. 45 - What is utilization at the less utilized garages. How underutilized are these garages and can we repurpose them?
 p. 46 - What does permit utilization mean?
 p. 48 - Why only $7M/year in internal spending in our budget? Does grant money reduce the amount the City pays or augment the number of projects?  p. 51 - Staffing is remaining constant in Transportation. Does this mean we are OK with the pace of change?
Sorry for the brain dump but I wanted to cover everything as I know that different members have different interests. I will distill my comments for tonight,

Mike

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Annual
Transportation
Review
(City Council Priority #5)
June 1, 2026
Jay Yu, P.E.

Engineering Manager
Public Works Department
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Agenda
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I. Transportation Network
II. Safety
III. Active Transportation
IV. Vehicle Congestion Management
V. Parking Management
VI. Challenges

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I. Transportation Network
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What is included in the transportation
network?
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General
Plan
Goals
Objectives
Policies
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2026 STRATEGIC PLAN
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Safe, Smart, Efficient
Transportation for All.

Fund Smarter to
Build Faster.

Better Transit.

Stronger Connections.

SP-TG1
SP-TG2
SP-TG3

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More Balanced
Network
Vehicle Centric*
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*According to American Community Survey. Excludes w orking from home commuters. 2023 Data 2024 Data
~ 76%
~ 4%
~ 9%
~ 6%
~ 5%
~ 74%
~ 3%
~ 11%
~ 9%
~ 3%

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II. Safety Program
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Safety
2040 GP
Policies
• C1.3 – Vision Zero
• C1.5 – El Camino Real Pedestrian Safety
• C5.4 – Safety At-Grade Rail Crossings
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2026 Strategic Goal
Safe, Smart, Efficient Transportation for All
SP-TG1

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Bike San Mateo
Safe Routes to School
Program
Local Roadway Safety
Program
High Voltage
Streetlight Conversion
Program
Safety Programs
Citywide Traffic
Calming
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Quick-Build Safety

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CC #40
PMP
BMP
TODPAP
CC #39
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ACTIVE CIP SAFETY PROJECTS
PHASE
Various
Design
Planning
Planning
Design
Design
Design
Construction
Construction
Completed
Completed

PROJECT

0. All Bike San Mateo Program Projects

1. Local Roadway Safety Priority Package 1

2. Citywide Speed Survey Renewal

3. Safe Routes to School Program

4. Hillsdale/Alameda Intersection Safety Improvement

5. Hillsdale High School/31 st Avenue Safe Routes to
School

6. High Voltage Conversion Phase 4

7. High Voltage Conversion Phase 5

8. Poplar/Humboldt Intersection Safety Improvement

9. B Street Pedestrian Scramble (1st – 3rd Avenue)

10. Downtown Parking Garage Pedestrian Safety Project
Grant Funding
Adopted Plan
City Council Priority
1 4
5 6
7 9
10 8

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TRAFFIC CALMING/GENERAL INQUIRIES
2024
+14%
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❑ Traffic Calming Requests
❑ Total Public Email Exchanges
❑ Time Spent on Email Responses
❑ Time Spent on Field Investigation
❑ Time Spent on Admin. Duties
127
1,650+
1,000+ Hours
560 Hours
175 Hours
1,760+ Hours
2025
145
1,800+
1,100+ Hours
655 Hours
200 Hours
2,030+ HoursTotal Time Spent (est.)
+9%
+10%
+17%
+14%
+15%
Smart Activities FY26-27

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QUICK BUILD SAFETY PROGRAM
Goal is to dramatically reduce injuries and fatalities by implementing proven safety treatments in weeks or months instead of years.

Program Started
in 2024
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Program
Development
Controls
Draft/Develop
Design Guidelines
and Tool Kit
Establishing On-
Call Resources
2026
Evaluation and
Scaling
Maintenance and
Monitoring
Refinement
12 Months
CIP Project
Timeline
Quick Build
Timeline
4 Months 4
Months
6 Months
Start Complete
70%
Reduction in
Delivery
Schedule
Planning
Design
Construction

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QUICK BUILD SAFETY PROGRAM
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Current
Process
City Staff
Planning and
Engineering
Evaluation and
Assessment
Design and
Engineering Implementation
City Staff
Planning and
Engineering
City Staff
O&M
Maintenance
City Staff
O&M
Future Process
City Staff
Planning and
Engineering
Evaluation and
Assessment
Design and
Engineering Implementation
On-Call
Transportation
Consultant
On-Call
Quick-Build
Specialist
Maintenance
City Staff
O&M
Maximize City
Staff Resources
Streamline
Implementation
Increase Delivery
as Program Ramps
Up

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12+
Active QB Projects
3 CIP Projects with
Critical QB Gap
Funding
❑ 17th Avenue and El
Camino Real
❑ San Mateo Drive
and Monte Diablo
Ave.
❑ El Dorado 4th and
El Dorado 3rd
❑ Delaware Street
and State Street
❑ Delaware Safe Routes to
School Protected Bike
Lane
❑ Hillsdale Blvd. / ALDP
Intersection Safety
Improvement
❑ LRSP Priority Package 1

QUICK BUILD SAFETY PROGRAM
Active QB Projects
Critical QB Gap Funding
Example Project Locations

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Slow for Students
Project
Citywide Speed Limit Program
CC #6
39 Corridors
Reduced
Speeds• Public and Private Schools
• Within 500 -1000 Feet of a School = 25mph
• Within 500 Feet of a School = 15mph
23 Schools
Citywide Speed Survey Renewal
Data
Preparation
Fall/Winter
2026
Estimated
Completion
Now
1 2
Consultant
Selection
Speed
Survey
Certification
Process
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Safe Routes to School Program
SRTS Strategic Plan1
Start of Strategic
Plan
Summer 2027
Funding Request in
Annual Budget Cycle
Spring 2024
Completion of
Strategic Plan
Detail
Implementation
Plan
Summer 2025 Winter 2026
15+
Community
Engagement
Events
10 Informant
Interviews
Community Driven
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Delaware SRTS
Protected Bike
Lane
Design to
Construction
Alameda De Las
Pulgas/Hillsdale
Safety
Improvements
Design to Construction
Hillsdale/31st
Avenue SRTS
Secured $390K grant
funding for design
2 RECENT SRTS ACCOMPLISHMENTS

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2025 Safety Metrics
<1% Fatal (1)
7% Severe (13)
93% Minor (183)
34 / 17%25 / 13%
197 T otal Collisions
138 / 70%
60 / 30%
Broadside
(T-Bone)
35 / 18%
Rear End
32 / 28% Other
21 / 11%
Side Swipes
19 / 10%
Head On
6 / 3%
Object
65+15-64
7% 78% 14%
Severity Types
Vehicle Collision Types
Citywide Numbers
Age Split
<14
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Collision data is from Transportation Injury Mapping System (TIMS) and excludes freeway collisions as of March 2026

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2025 Safety Metrics
Total Collisions
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2025 2024 3-Year PP Avg.*
197
34 25
138
Fatal
Severe
Minor
Pedestrians
Bicyclist
Vehicle
1 13
183
240
48 26
165
1 15
224
224
39 31
154
2 9
213
YOY∆%
-12%
-13%
-19%
-10%
-50%
+44%
-14%
PP∆%
-18%
-30%
-5%
-16%
-25%
-11%
-18%*2017, 2018, 2019 data
Collision data is from Transportation Injury Mapping System (TIMS) and excludes freeway collisions as of March 2026

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III. Active Transportation Program
To enhance active transportation by supporting walking, biking, and transit through safe and connected infrastructure.
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Better Transit.

Stronger Connections.

SP-TG1
SP-TG3
2026
Strategic
Goal

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Planning Infrastructure
2040 General Plan
Bicycle Master Plan
Pedestrian Master Plan
Complete Streets Plan (Paused)
Transit Oriented Development
Pedestrian Access Plan
Bike San Mateo Program
Pedestrian Improvements
(Implemented by our Pavement
Management Program)
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CC #40
PMP
BMP
TODPAP
CC #39
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ACTIVE TRANSPORTATION PROJECTS
Phase
Planning
Planning
Design
Design
Design
Design
Construction
Complete
Complete
Complete
Complete
Project

0. Complete Streets Plan

1. Peninsula Corridor Complete Streets (High)

2. 19th Avenue Fashion Island Multimodal
Improvement (Med-High)

3. 28th Avenue Gap Closure (High)

4. Downtown Caltrain North Access

5. Humboldt Bike Lanes Alternative Phase II

6. Delaware Safe Routes to School Corridor
Bike Improvement (High)

7. 3rd and Norfolk Intersection Safety Improvement
Project (Med-High)

8. Campus Drive Class II

9. South B Street

10. South Grant Street Bicycle Boulevard
Grant Funding
Adopted Plan
City Council Priority
1 2
3 4
5 6
7 8
9 10

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CC #40
PMP
BMP
TODPAP
CC #39
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IN-PROGRESS PAVEMENT MANAGEMENT PROJECTS
Project ProposedBike
Facility
Priority in
Bike Master
Plan
Street Limits
PMP
Phase 4-A1
Class II Bike Lane
High 5th Avenue
El Camino Real
to Ellsworth
Avenue
S Claremont St
to S Delaware
St
Part of Existing
Network
Laurel Ave 7th Ave to
9th Ave
9th Ave S Humboldt to
S Amphlett Blvd
Norfolk St Darwin Ave
to Roberta Dr
Bridgepoint
Pkwy
Bridgepoint Cir
to Bridgepoint
Cir
Class II Buffered
Bike Lane High Delaware St
Birch Ave
to Sunnybrae
Blvd
Class II Buffered
Bike Lane Med-Low Peninsula Av
e
Bayshore Blvd
to Airport Blvd
PMP
Phase 6-B Class II Bike Lane High West
3rd Avenue
Dartmouth Rd
to El Camino
Real
Class II Bike
Lane
Class II
Buffered Bike
Lane
Class II
Buffered Bike
Lane
Class II Bike
Lane
Class II Bike
Lane

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Bike San Mateo
170+
bicycle projects
identified in the
2020 BMP
$40M+
of projects
identified*
60+
centerline miles
of bike
infrastructure
that need to be
improved
City Council Priority – Complete all High and Medium -High Priority projects in the 2020 Bicycle Master Plan
CC #40
BMP
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*Does not include complete street elements and is in 2024 dollars

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Overall Network
CC #40
BMP
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Connectivity
Safety & Comfort
Equity
Ridership
Proposed Network
Criteria

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High Med-High Priority Map
CC #40
BMP
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Connectivity
Safety & Comfort
Equity
Ridership
Proposed Network
Criteria

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Progress
Complete all High and Medium -High
priority projects in the 2020 Bicycle Master
Plan and the Pedestrian Master Plan with
the goal of prioritizing quick -build projects
where feasible.

COMPLETED

24.2%~38.4 Miles of High and Medium-High
30 20
10 0 9.30 Miles Completed

2.70 Miles In-Progress
78%
All High and
Medium High
Projects
22%
54%
Med-High
Priority Projects
Are high
priority Projects
Target
Completed
In-Progress
Are Med-
High Priority Projects
46%
High Priority
Projects
CC #40
BMP
~11.4%
Completed
Med-Low and Low
In-Progress
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6.40 Miles Completed
2024

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Pedestrian Programs
300+
Non-lighting projects
$15M+
non-lighting projects
$200M+
lighting projects
60+
lighting projects
CC #40
PMP
~31%
Completed
~24%
Completed
4,100+
Number of sidewalk (SF)
repaired in 2025
54 Number of constructed curb
ramps 2025
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IV. Vehicle Congestion Management
(VCM) Program
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Better Transit.

Stronger Connections.

SP-TG1
SP-TG3
2026
Strategic
Goal

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Planning Infrastructure Maintenance
and Operations
• Private Development:
• Streamlined Traffic Impact
Analysis (TIA)
• Clear local TIA modeling
guidelines
• Increased professional traffic
consultant support
• Construction Management
Plan
• TDM Ordinance
• Citywide Traffic Signal
Prioritization
• 3rd and Norfolk Intersection
Safety Improvement Project
• Hillsdale/Alameda Traffic
Signal Intersection Safety
Project
• 19th Avenue/Fashion Island
Traffic Signal Coordination
• Norfolk Fashion/Island
Intersection Optimization
• Citywide Traffic
Controller Upgrades
• Citywide Video Detection
System Upgrades
• Citywide Traffic Signal
Retiming
• Traffic Management
Center
CC #39
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Develop Responsibly
Housing Element
Adoption
May 2024
Increase in
Development for the
Foreseeable Future
General Plan 2040
Adoption
March 2024
+
=
Streamlined Process Traffic
Impact Analysis (TIA)
Increased Professional Traffic
Consultant Support
Clear Local TIA Modeling
Guidelines
New Traffic Measures
Construction Management
Plan
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4,900+
7,000+
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Jan-25 Jan-26
Housing Units
(In the pipeline)
+43%

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Operational Efforts
Communication
Upgrade
Video Detection
System Signal Retiming Traffic Management
Center
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Travel Time
Avg.

Vehicle Volume
~8,325
~6,100
~4,400
PM Peak
PM Peak
PM Peak
Avg.

Travel Time
Avg.

Vehicle Volume
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~2 min
~3 min
~3 min
~8,100
~6,200
~4,000
PM Peak
PM Peak
PM Peak

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V. Parking Management Program
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Better Transit.

Stronger Connections.

SP-TG1
SP-TG3
2026
Strategic
Goal

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City-Owned
Downtown
Parking Facilities
8 Residential
Parking Permits
Issued
2600+
Private Shared
Downtown
Parking Facilities
7 Downtown Parking Permits Issued in
2025
12,000+
On-Street and
Off-Street
Parking Spaces in
the DT
3500+
Parking
Enforcement
Officers
13 42 of 61
Privately Owned Parking Garages
City Owned Parking Garages
City Owned Parking Lots

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Downtown Parking Revenue
2025*
Cash
Card
Monthly Permits
2024*
*Calendar Year
PaybyPhone
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$410,000
$1,491,000
$745,000
$640,000
$373,000
$1,578,000
$820,000
$865,000
$3.4M $3.6MTotal
42%
23%
11%
24%
% T otal Revenue
89%
All
Payments

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2024 Downtown Parking Utilization
Weekday
Lunch
(11AM – 2PM)
Weekend
Dinner*
(6PM – 8PM)
70% 2nd and ECR

69% Central
62% Main Street
90% Main Street

71% Central
56% 4th and Railroad
76% Tennis Court

66% Central
56% Main Street
90% Central

90% Main Street
72% 4th and Railroad
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Garages
• Tennis Court
• 2nd and ECR
• Transit Center
• Main Street
• Central
• Kiku
Parking Lots
• Fifth and B
Street
• Fourth and B
Street
#1
#2
#3
#1
#2
#3
#1
#2
#3
#1
#2
#3*Outside of parking
enforcement timeframe

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Monthly Parking Permit Utilization
Tennis Court
2nd & ECR
2024
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100%
Transit Center
Main Street
Central
Kiku
South Railroad
2025
91%
27%
82%
96%
26%
58%
100%
100%
90%
79%
100%
62%
57%

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Residential
Parking
Permit Zones
16 Residential
Permits
Processed
2600+
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Residential
Permit
Program Calls
1500+
Residential
Permit
Program
Emails
250+
2025 New
Residential
Parking Permit
Zone Requests
5 Estimated 2025 Staff Hours: 12,500+
Residential
Permit
Program
Enforcement
Officers
6 Free Residential Parking
Permit Program

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VI. Challenges
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~19%
$6.66M
2025 Transportation Funding
~84%
Transportation
CIP projects are
grant funded
100%
75%
50%
25%
0 Federal State County
~5%
$1.65M
~76%
$27.09M
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Types of Local Funds
• Traffic Impact Fee
• Measure A
• Measure S
• General Fund
~16%
$6.88M
$40M
$30M
$20M
$10M
0 Local Grants
~84%
$35.64M
$42.5M in active
CIP transportation
Projects
Fund Smarter to
Build Faster.

SP-TG2

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Grant Strategy: Tiered Pursuit Framework
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Tier 1:

Actively Pursue
Low burden l High Reward
• High awards
• No local match
• Minimal paperwork
Tier 2: Pursue Selectively
Balanced Grants
• Moderate awards
• Some local match
• Moderate paperwork
Tier 3: Lowest Priority
High Burden | Lower Reward
• Low awards • High local match • Heavy paperwork
Decision Factors
✓ Award Size
✓ Local Match Requirement
✓ Administrative Burden
✓ Project Readiness
✓ Grant Flexibility
✓ Project Fit

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San Mateo
is mostly built out.

Future developments
will be in-fill
developments.

Limited Right-of-Way
#1
Most populated
City in San Mateo
County*
#4
Most dense City
in the County
with
8,300+ Residents
per square-mile*
46%
of all High and Medium
High Priority Bicycle
projects require either a
lane reduction or
parking removal.
*2023 American Community Survey per Census.gov
~200 mile
(centerline)
~23 miles
(bike lanes centerline)
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Transportation and Private
Development
Planning and Engineering
Previous Staffing
Maintenance and
Operations
Filled
Vacant
Engineering
Manager (1)
Traffic
Engineering (5)
(1) Senior Engineer
(3) Associate Engineer
(1) Engineering Technician
Maintenance
Manager (1)
Traffic O&M (6)
(1) Maintenance Supervisor
(2) Traffic Safety Worker
(2) Traffic and Lighting Technician
(1) Maintenance Worker
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35 FTE
Transportation
Planning (3)
(1) Principal
Transportation Planner
(1) Associate
Transportation Planner
(.5) SRTS Coordinator
Private
Development and
Right-of-Way(7)
(1) Senior Engineer
(3) Associate Engineer
(2) Engineering
Technician
(1) Admin Technician

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Current Staffing
Maintenance and
Operations
Filled
Vacant
Engineering
Manager (1)
Traffic
Engineering (5)
(1) Senior Engineer
(3) Associate Engineer
(1) Engineering Technician
Maintenance
Manager (1)
Traffic O&M (6)
(1) Maintenance Supervisor
(2) Traffic Safety Worker
(2) Traffic and Lighting Technician
(1) Maintenance Worker
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35 FTE
Transportation
Planning (3)
(1) Senior
Transportation Planner
(1) Associate
Transportation Planner
(1) Assistant
Transportation Planner
Private
Development and
Right-of-Way(3)
(1) Senior Engineer
(3) Associate Engineer
(2) Engineering
Technician
(1) Admin Technician
Engineering
Manager (1)
Transportation
Planning and Engineering
Private Development
and Right-of-Way

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Main Slide
2025 Active Project
Map

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Active
Active Transportation
CIP Projects
2025 Active Project
Map

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Safety
Active Transportation
CIP Projects
Active Safety
Projects
2025 Active Project
Map

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PMP Projects
Active Transportation
CIP Projects
Active Safety
Projects
Ped/Bike PMP
2025 Active Project
Map

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Quick Build
Active Transportation
CIP Projects
Active Safety
Projects
Ped/Bike PMP
Quick Build Projects
2025 Active Project
Map

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Quick Build
Active Transportation
CIP Projects
Active Safety
Projects
Ped/Bike PMP
Quick Build Projects
Parking and RPPP
2025 Active Project
Map

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Active Transportation
CIP Projects
Active Safety
Projects
Ped/Bike PMP
Quick Build Projects
Parking and RPPP
Traffic Calming
2025 Active Project
Map

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2025 Transportation Key Take Away
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Safety
22 Active Safety
Projects
7 of 10 Active
LRSP Priority Projects
are Funded
Active
Transportation
11 Active CIP
Transportation
Projects
Completed ~22%
High and Med-High
BMP Network
Congestion
Management
Streamlined
transportation
reviews supporting
7,000+ housing
units
Major corridor travel
times are staying
relatively the same
Parking
Management
Parking occupancy
in downtown
remains strong,
even after 6pm
Demand and staff
resources for RPPP is
increasing
84% Transportation CIP Projects are Grant Funded

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Thank You
Jay Yu P .E.

Engineering Manager
[email protected]
www.cityofsanmateo.org/publicworks
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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 18 Section Name: PUBLIC HEARING Account Number: 10-2021 File ID: 26-11252 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: June 01, 2026
SUBJECT:

Fiscal Year 2026-27 Proposed Budget and 2026-31 Capital Improvement Program — Review RECOMMENDATION:

Review the fiscal year 2026-27 proposed budget and the 2026-31 Capital Improvement Program budget and conduct a public hearing prior to the scheduled adoption at the June 15, 2026, City Council meeting.

BACKGROUND:

Prior to the City Council’s scheduled adoption of the fiscal year (FY) 2026-27 budget, it holds two public hearings to receive public comment on the proposed operating and capital budgets. This review of the budget is the first of those two public hearings.

FY 2026-27 is the first year of the City’s two-year 2026-28 business plan and the focus is on developing the City‘s operating budget. As part of developing the budget, each Department reviewed their operating budgets in detail and proposed two- year budgets within the parameters set by the Finance Department. For the FY 2026-28 Business Plan, Finance staff directed Departments to maintain their baseline budgets which included making no new requests and working to maintain cost increases. The proposed budget also reflects the implementation of parts of the City’s Financial Sustainability Plan, including cost recovery enhancements and expenditure controls. In addition, although the CIP is not typically emphasized during this budget cycle, staff did conduct a thorough review of the CIP given the completion of the facilities assessment and the need to prioritize facility improvements and funding within the newly established Capital Investment Reserve.

On April 20, 2026, Finance staff presented the City Council with a preview of the FY 2026-27 General Fund operating budget and the 2026-31 Five-Year CIP. Additionally, staff provided four scenarios for the General Fund ten-year forecast to illustrate potential fiscal outcomes based on property tax in-lieu of vehicle license fees (VLF) shortfalls and a potential elimination of Real Property Transfer Tax (RPTT). Following this meeting and the feedback provided by the City Council, staff worked to finalize the proposed budget. In addition, on May 21, 2026, the Measure S Oversight Committee met to review the proposed budget and CIP for the Measure S funds. At the meeting, the Committee voted to recommend the proposed budgets to the City Council and the Committee expressed their interest in prioritizing projects that fund pedestrian and bicycle safety.

The proposed FY 2026-27 citywide budget (for all funds) totals $356.5 million, which includes an operating budget of $290.3 million, and a capital budget of $66.3 million. The General Fund budget (including transfers) is proposed at $190.9 million. Key budget highlights are summarized in the City Manager’s Letter of Transmittal, included in the opening section of the proposed budget book (Attachment 1), which was published on the City’s website on May 28, 2026. Additional details on all the City's revenues and expenditures are also included throughout the budget book.

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CITYWIDE PERSONNEL BUDGET
As part of the FY 2026-27 budget, proposed personnel cost increases have been incorporated into the budget. Personnel costs, including salaries, benefits and pension costs; increased about 9% as a whole due to previously negotiated COLA and equity increases as well as anticipated increases in health care and pension expenses. In addition, proposed personnel updates have been incorporated in the budget for the following departments: the City Manager’s Office, Finance Department and Community Development. Upon approval, these classification changes will become effective as part of the adoption of the FY 2026-27 budget. Additional details on personnel changes are included in the Appendix section of the budget document.

Proposed changes include the reallocation of three existing positions and the addition of three unfunded positions:
Reallocate 1.0 FTE Sustainability Analyst to 1.0 FTE Business Manager. Reallocate 1.0 FTE Business Systems Analyst to 1.0 FTE Management Analyst I/II. Reallocate 1.0 FTE Payroll Technician I/II to 1.0 FTE Payroll Analyst. Add 3.0 FTE Fellows, unfunded, to address strategic plan priority initiatives as one-time funding is available.

These proposed changes will have limited impact on the General Fund since the three new positions are unfunded, and most of the reallocated positions are funded by some General Fund as well as other funding sources. The anticipated net fiscal impact of all these changes is a savings of about $30,000 across funding sources.

CITYWIDE OPERATING BUDGET
The proposed budget for FY 2026-27 shows an increase of about 5% to Citywide operating costs. The increase is mostly due to inflationary cost increases of about 4% for outside goods and services and increases between 9-20% for utilities and insurance throughout the City. In addition, a few one-time purchases for equipment and vehicles are included in this year’s budget to support storm and sewer maintenance.

FUND HIGHLIGHTS
The two most important funds to highlight for this budget are the two major operating funds: the General Fund and the Sewer Fund. This next section provides a high-level summary of the proposed FY 2026-27 budgets for these two funds and an executive summary of the 2026-31 five-year capital improvement plan.

General Fund
The General Fund is the City's primary operating fund and includes all the General Fund sub-funds; Measure S, Downtown Services, Recreation Services and Golf funds. The proposed FY 2026-27 General Fund budget totals $190.9 million, which includes $183.8 million for operating expenditures and $7.1 million in transfers out, including $2.5 million transfers to Debt Service Funds and $3.95 million for capital improvement projects (CIP). Below is a table summarizing the General Fund revenue and expenditures budget.

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Table A – General Fund Revenue and Expenditures
Total General Fund revenues are budgeted at $173.9 million, a decrease of $1.9 million (-1.1%) compared to the FY 2025- 26 adopted budget. To account for current economic uncertainty and risks related to the Property Tax In-Lieu of Vehicle License Fee (VLF) backfill, the City has adopted conservative revenue assumptions. Key assumptions include:
Property tax: $85.0 million, which includes 3.2% annual growth rate in secured property tax and the assumption that the State of California will not amend its FY 26-27 budget to backfill the City’s share of the FY 24-25 Property Tax In-Lieu of VLF shortfall amounting to $6.9 million. Sales tax (including the ¼ cent Measure S): remaining relatively flat at $27.9 million. Real Property Transfer Tax (RPTT): $9.0 million, returning to baseline after one-time spikes in FY 2024-25 Transient occupancy tax (TOT), franchise fees and business license tax are expected to bring in $4.1 million, $3.5 million and $8.3 million, respectively.
Other revenues are expected to maintain stable with moderate growth.

Total General Fund expenditures are budgeted at $190.9 million with key components including $83.7 million in personnel costs, reflecting projected increases in salaries and wages, healthcare, and pension costs; $14.3 million in the General Fund’s share of the required payment for unfunded pension liability; $45.1 million in other non-personnel operating costs; and $40.7 million for Fire Services provided by the San Mateo Consolidated Fire Department (SMC Fire).

Total transfers out from the General Fund are projected to be $7.06 million, allocated as follows:
$3.95 million for capital improvements, including $0.7 million from Measure S and $1.25 million from Measure CC funds (both sub-funds of the General Fund);
$2.5 million from Measure S funds for debt service related to flood control and street reconstruction projects; $350,000 to the 2% Hotel Tax Fund to ensure the fund has sufficient funding for debt service; and $410,000 to the Equipment Replacement Fund to address building maintenance needs; Given that projected expenditures exceed projected revenues by $17 million, it is anticipated that a draw on the Budget Stabilization Reserve will be required to balance the General Fund FY 2026-27 proposed budget. This budget is developed based on the assumption that the State will not fund the VLF shortfall of $6.9 million in FY 2026-27. If this assumption does not hold, the General Fund deficit could decrease to a $10 million deficit. However, in either case, the City will need to draw on the Budget Stabilization Reserve to maintain core services and continue providing for critical facility and

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infrastructure needs.

At the same time, this budget does not assume that the proposed initiative that would eliminate the Real Property Transfer Tax passes or does not pass. Although this proposed ballot initiative poses a critical threat to the City’s third largest source of revenue, the proposed measure would go into effect two years after passage and would not impact the FY 2026-27 budget.

This year’s budget continues the trend of projecting a General Fund deficit for the City. The trend reflects the structural deficit that has been anticipated as the City’s revenue base grows more slowly than expenses and is no longer sufficient to support operating expenses and needed investments in critical infrastructure. To address this development, the City has already begun working on its financial sustainability plan which includes pursuing activities and initiatives such as additional expenditure controls, additional revenue enhancements, cost recovery and accurate cost allocation, grant opportunities and economic development. Fortunately, the City has built a strong financial position with healthy reserves due to the fiscal prudence of the current and previous City Councils and administrations. These reserves provide staff with some room to take deliberate, long-term actions to balance the budget and restore fiscal stability.

Sewer Fund
The FY 2026-27 proposed budget projects $97.2 million in revenues, principally comprised of sewer service fees of $92.2 million. The projected revenues reflect the approved annual rate increase of 3.0% for FY 2026-27 to support the capital improvements and maintain ongoing services. Total expenses are projected to be $109.5 million, comprised of $40.5 million in operating expenses, $40.6 million in CIP, and $28.3 million in debt service. CIP expenses will largely be funded by proceeds from the low-interest loans from the state and federal government and reflect both the commitment to complete the Clean Water Program, a comprehensive plan to update the wastewater collection system and wastewater treatment plant (WWTP), and new post Clean Water Program improvements that are needed to update the older solids processing infrastructure within the WWTP operation.

Capital Budget and Five-Year CIP
The 2026-31 Five-Year CIP demonstrates the City’s commitment to investing in the community, with a total of $349.2 million allocated to the CIP for the next five years. Each fiscal year, the City Council appropriates new funding for year one of the five-year CIP. The proposed FY 2026-27 capital budget is $66.3 million as summarized in the table below, as well as in detail in the proposed budget book (Attachment 1).

Table B: FY 2026-27 Capital Budget and 2026-2031 Five Year Capital Improvement Plan by Category

GANN LIMIT
In addition to the adoption of the FY 2026-27 budget and capital improvement program, there will be one other action requested of Council as part of the overall budget adoption process on June 15th. This action is to establish the City’s appropriations limit for FY 2026-27. The appropriations limit, which was originally established in 1979 by Proposition 4,

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places a maximum limit of the appropriation of tax proceeds that can be made by the state, school districts, and local governments in California. California Government Code requires that the City annually adopt an appropriations limit for the upcoming fiscal year. The appropriations limit for the City for FY 2026-27 is $304,406,300, while the proceeds of taxes subject to the appropriations limit is $145,978,000. Therefore, the City is well below its appropriations limit for FY 2026-27.

BUDGET IMPACT:

There is no direct budgetary impact resulting from this report. The proposed 2026-27 budget contains a consolidated summary of proposed appropriations for 2026-27 in the Budget Overview section of the document, with comprehensive financial information at the fund level (Fund Information section) and the department level (Departments section) included as well.

ENVIRONMENTAL DETERMINATION:

This FY 2026-27 budget is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 — FY 2026-27 Proposed Budget

STAFF CONTACT
Abby Veeser, Director, Finance
[email protected]
(650) 522-7102

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Fiscal Year
2026-28
Proposed
Business Plan

CITY OF SAN MATEO

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Table of Contents
BUDGET MESSAGE 1 CAPITAL IMPROVEMENT PROGRAM 78
Funded Projects 79
BUDGET OVERVIEW 12 CIP Projects by Category 81
Citywide Sources of Funding 13 CIP Projects by Funding Source 84 Citywide Operating Budget 15 Unfunded Projects 87
Capital Improvement Projects Budget 17
Schedule of Interfund Transfers 18
APPENDIX 89
Full Time Equivalent (FTE) Personnel 20 GANN Appropriations Limit 90 Pension Long-Term Forecast 21 Budget Changes 91
General Fund Summary 23
General Fund 10-Year Forecast 26
DEPARTMENTS 28
City Attorney 29
City Clerk 30
City Council 31
City Manager's Office 32
Community Development 33
Finance 35
Human Resources 36
Information Technology 37
Library 38
Parks and Recreation 39
Police 41
Public Works 43
Non-Departmental 46
FUND INFORMATION 47
Special Revenues 48
Debt Service 64
Enterprise 68
Internal Services 71

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able 2: Operating Budget Changes (in thousands)
Budget Message
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Transmittal of Proposed Budget

City Manager’s Letter of Transmittal

Honorable Mayor and Members of the City Council:

I am pleased to present for your review and consideration the proposed Fiscal Year (FY) 2026-27 operating budget and the FY 2026-27 Capital Budget along with the City’s Capital Improvement Program (CIP) for the next five years. This budget reflects our commitment to maintaining core City services and making strategic investments in our community, while pursuing long-term fiscal health in a challenging and unpredictable environment.

The proposed citywide budget, including both operating and capital, is $356.5 million for fiscal year 2026-27. This budget focuses on funding core services, Council priorities, and community needs. The five-year CIP reflects the City’s commitment to improve and maintain City facilities and infrastructure, by investing $350 million over the next five years in capital projects.

Overall, the Citywide budget does increase in expenditures, which reflects growing operational pressure as inflationary impacts and rising labor costs increasingly affect the cost of delivering services. Costs tied to outside goods and services, utilities, insurance, and personnel continue to trend upward, reflecting broader economic conditions that have materially increased the City’s ongoing operating costs despite efforts to maintain a stable budget. Ongoing obligations such as payments toward unfunded pension liabilities also continue to place demands on the budget. In addition, funding challenges limit the City’s ability to continually maintain and modernize aging facilities and infrastructure, with over $348 million in unfunded capital needs over the next five years. As the City continues to navigate this cost escalation, this budget proposes minimal programmatic expansion for FY 2026-27 given the estimated structural deficit tied to the provision of essential services.

Simultaneously, over the past year, the City’s revenues have continued to face pressure, and the economic outlook has become increasingly uncertain. Factors such as global instability, persistently high inflation and interest rates, flattening sales tax revenues, and shortfalls in State Vehicle License Fee (VLF) funding are all affecting the City’s financial picture. A recent proposed ballot measure to eliminate the City’s real property transfer tax presents an added threat. In addition, there are broader risks to state and federal funding that could further impact local resources.

Taken together, these factors present a risk to the City’s long-term financial stability. Owing to careful financial management by the City Council, both current and past, the City has built up reserves that can help bridge this gap in the short term. However, it is critical to balance this short-term solution with a proactive plan that ensures long-term sustainability. This includes maintaining core services, investing in critical infrastructure, managing costs responsibly, pursuing grant opportunities and increased economic development, and identifying reliable, ongoing sources of revenue – all facets of the City’s active Financial Sustainability Plan.

Financial Sustainability Plan

While we continue to closely monitor these fiscal challenges, we are taking proactive steps through our Financial Sustainability Plan. The plan is already underway, with several actions in progress this past year and additional measures planned to help strengthen the City’s financial future. Our first step has been to implement expenditure controls through freezing ten vacant positions, assessing and shifting appropriate expenses to Non-General Fund sources, generating benefit savings by reducing Worker’s Compensation allocations given a robust existing balance, and implementing various operating budget savings through contract renegotiations. These measures are estimated to save us approximately $3.2 million. The FY 2026-27 budget also proposes $2 million less in General Fund funding for capital projects to help offset some of the anticipated operating deficit.

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Transmittal of Proposed Budget

Next, we are exploring opportunities to strengthen revenues. We have improved cost recovery through revised funding and pricing models and selected a consultant to produce a citywide updated cost allocation plan. In addition, we continue to pursue grant opportunities through our grant consultant and work towards enhanced economic development through implementation of our Adopted Economic Workplan for 2026-2029, including exploration of billboard policies and assessment of City-owned properties for highest and best use. Finally, we are researching the possibility of placing a sales tax measure on the November 2026 ballot, an option that will be considered by this City Council in July.

As we remain attentive to the challenges ahead, this budget message provides an overview of the steps we will take to effectively serve our community and meet its needs in the immediate future and beyond. These steps are grounded in the City Council’s Strategic Plan Priorities which guide our overall approach for the FY 2026-27 Citywide Operating Budget as well as the FY 2026-27 Capital Budget and Five-Year Capital Improvement Program (CIP) presented below.

City Council Strategic Plan Priorities
The City Council priorities for FY 2026-27 are part of the first citywide Strategic Plan, a tool to aid in the implementation and prioritization of the City’s ten major Strategic Initiatives. The Strategic Plan is presented in full in the next section of the budget book. In FY 2026-27, the City will focus on four of the ten strategic initiatives: Climate Resiliency, Infrastructure, Transportation, and Housing. Below are some of the City Council adopted FY 2026-27 priorities; for a full list of priorities, please refer to the Priority Initiative subsection under the City Overview:

Climate Resiliency

 By October 2026, complete the Marina Lagoon Spot Dredging project, removing 2,000 cubic yards from the Lagoon.
 Install electric vehicle charging infrastructure at the Co rporation Yard by January 2027 to enable the transition to a green City Fleet by 2035.
 Conduct community and business engagement to educate the community about the prohibition on gas leaf blowers that begins on January 1, 2027.

Infrastructure

 Complete the Central Park Playground project and East Hillsdale Park renovation project by December 2026.  By June 2027, complete the King Pool and Resilien cy Center conceptual design phase. This project will modernize the existing swim center and locker rooms into a multifunctional resilience center.  In FY 2026-27, initiate design phase for a new Fire Station (27) that fully complies with all local, state, and national fire, building, and safety codes, ensuring a resilient, efficient, and mission-ready facility that supports operational needs and community safety.

Transportation

 Complete 100% design and secure Caltrans authorization to proceed forward to construction for the 19th Ave Fashion Island Multimodal Project by June 2027.
 Complete construction and closeout of Peninsula/Dela ware Intersection Safety improvements by March 2027.  Complete construction and closeout the Delaware Safe Routes to School Corridor project by September 2026.

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Transmittal of Proposed Budget

Housing

 Hold a study session regarding the City’s affordable housing funds and options for deployment by September 2026.
 Amend the City’s Inclusionary Housing Ordinance and updat e the Below Market Rate Guidelines to increase the number of affordable units produced overall (based on a nexus study, if necessary) and to incentivize production of larger units and deeper affordability by December 2026.  Review permitting procedures for single-family projects (modifications, remodels and new construction), and identify ways to speed up the process, reduce costs for homeowners and create efficiencies for city staff by simplifying and streamlining requirements and the permitting process and present findings and options for implementation at a study session by January 2027.

These annual City Council strategic plan priority initiatives are reflected in the FY 2026-27 Citywide Operating Budget and the FY 2026-27 Capital Budget. These budgets advance the priorities by focusing investments on both completing and initiating critical capital improvement projects, exploring modifications and improvements to policies and procedures, and advancing new programs and community engagement efforts.

2026-27 Citywide Operating Budget
The table below summarizes the FY 2026-27 business plans for Citywide operating expenditures:

CITYWIDE OPERATING BUDGET 2026-27

PROJECTED
BUDGET
General Fund $ 183.8
Special Revenue and Debt Service Funds 31.6 Enterprise Funds 74.9
Total Operating Budget $ 290.3
In millions. Operating costs include debt service payments.

The City implements a two-year budget cycle, which requires that each department submit two one-year expenditure plans and revenue estimates to the City Council for approval. This is the first year of the two-year budget cycle.

The proposed FY 2026-27 Citywide operating budget is $290.3 million, which is an increase of approximately 6.4% over the adopted FY 2025-26 budget. This change reflects the general increase in the cost of operating the City at existing service levels and primarily shows increases in personnel costs due to negotiated bargaining unit contracts and benefits costs, insurance, and utilities.

As outlined, few new requests have been added to the budget as part of the current budget process. The proposed FY 2026-27 budget recommends generally maintaining merit staffing levels, with the reallocation of three existing positions and the addition of three unfunded positions. This puts the City at 557 Full Time Equivalents (FTE). Also, resources have been added to the personnel costs to fully fund the adopted labor agreements for all labor groups and provide for increases in benefits such as health insurance costs. A few changes have been made to non-personnel operating costs for the one-time purchase of equipment, but they represent only about $0.3 million, a small portion of the overall operating budget.

A summary of the changes to the personnel budget, as well as all other operational increases to the baseline budget, are included in the Appendix section of this document.
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Transmittal of Proposed Budget

General Fund
The General Fund is the primary funding source for our core services. The FY 2026-27 proposed budget, including transfers out, is $190.9 million, an increase of 2.0% over the adopted FY 2025-26 budget of $187.8 million. This increase is the result of several factors, including rising personnel costs, especially increases due to negotiated labor contracts and benefits, rising utility and insurance costs, and rising pension costs.

The proposed budget reflects a moderate growth in most of the General Fund revenues. The revenue projection is based on the assumptions that the high inflation and interest rate environment will continue in the next year, at least. However, unlike the prior year budget, the FY 2026-27 revenue projections assume that the property tax in-lieu of vehicle license fees (VLF) shortfalls will not be backfilled by the State of California in full this year. As such, overall revenues are projected to decline relative to FY 2025-26. These key assumptions are discussed in detail in the Budget Overview section of this budget document.

Due to the increase in costs and the uncertainty in some revenues, it is projected that the City will have a budget deficit of $17.0 million for FY 2026-27 and will require use of the Budget Stabilization Reserve to fund everything currently programmed in the budget. Even though what is currently programmed includes discretionary items, the fact remains that the City will need to begin prioritizing among many competing resource demands over the next few years to ensure we remain in a good financial position.

General Fund Expenditures
2026-27 Proposed Budget
$190.9 million
Personnel Expenses
Non-Personnel Operating Expenses
SMC Fire and Legacy Costs
Transfers Out to Other Funds
General Fund Revenues
2026-27 Proposed Budget
$173.9 million
Property Tax
Sales Tax
Property Transfer Tax
Business License Tax
Transient Occupancy Tax
Recreation and Golf Service Charges
All Other
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Transmittal of Proposed Budget

Measure S
Measure S, the 0.25% transactions and use tax extension, generates about $7 million in tax revenue each year. This critical funding source makes a significant difference for our community by providing much-needed support for both operations and capital improvements.

The proposed FY 2026-27 budget showcases how Measure S funding is allocated to enhance our City core services and infrastructure. Measure S continues to provide $2.2 million to support ongoing police, library, and parks and recreation programs. In contrast to the $2-3 million typically allocated out of Measure S to support CIP projects, this budget proposes only $0.7 million in CIP contributions due to significant capital budgeting of Measure S funds over the last two years which has committed much of the fund’s balance. The smaller allocation contributes to essential capital expenses while allowing the fund to build. The proposed allocations for FY 2026-27 include $0.1 million for the Neighborhood Traffic Management project, $1.5 million for the Citywide Street Rehabilitation Program, $0.6 million for the Citywide Roof Replacements project, $0.15 million for the Citywide Play Court Resurfacing project, $0.2 million for the Quick Build Mobility Program, and $0.15 million for the Peninsula/Delaware Intersection Safety Improvement project. These additions are offset by a $2 million reduction in the Smooth Street Program projects under the Citywide Street Reconstruction Package III which do not require additional funding going into FY 2026-27. On May 21, 2026, the Measure S Oversight Committee reviewed and recommended the Measure S FY 2026-27 budget, which has been incorporated in this proposed budget document.

2026-27 Capital Budget and 2026-31 Five-Year Capital Improvement Program (CIP) The Capital Improvement Program (CIP) for FY 2026-27 totals $66.3 million. Major projects include the King Recreation and Swim Center, the New Fire Station #27, the Wastewater Treatment Plant (WWTP) Dissolved Air Flotation Tank Replacement (DAFT), and high priority stormwater improvements:

King Recreation and Swim Center: In FY 2026-27, $4.0 million of Capital Investment Reserve funding is allocated for the Phase I design work of the King Recreation and Swim Center project. The project involves the development of a new pool and updated locker room facilities along with other essential items to establish a resiliency center at the facility.

New Fire Station #27: The City will undertake the planning and design for the replacement of Fire Station 27 to address deficiencies in the existing facility. The project will deliver a modern fire station that supports current and future service demands, enhances safety and operational efficiency, and complies with applicable building and life-safety codes. The total estimated project cost is $11 million, including approximately $1.1 million allocated for planning and design. For FY 2026-27, $2.2 million is allocated from the Capital Investment Reserve for pre-construction design work.

WWTP DAFT Replacement: The City continues to rely on the old section of the Wastewater Treatment Plant facility for solids processing, creating a critical need for the replacement of aging and failing infrastructure with more reliable technology and proper functioning. This project will replace the existing failing Dissolved Air Flotation Tank (DAFT) with rotary drum thickeners. In FY 2026-27, $5 million is appropriated from the Sewer Fund for this project, with a total project cost of $17.7 million.

High Priority Stormwater Improvements: This $14.25 million project includes the planning, design, and construction of the “Very High” priority projects identified in the Storm Drain Master Plan (SDMP). It focuses on pump station upgrades, mainline improvements, and rehabilitation of existing storm drain infrastructure needed to provide at least a 10-year level of flood protection throughout the city, and up to a 100-year level of protection for major facilities such as pump stations and large channels. A total of $2.25 million is allocated in FY 2026-27 for this project.

In addition to these major initiatives, we have several other important capital and infrastructure projects programmed in the budget for FY 2026-27. Some of the notable projects include:

 Marina Library Structural Improvements – An additional allocation of $0.4 million to the project will help complete the improvements to resolve settlement issues at the facility including structural foundation and American with 6 327 of 510

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Disabilities Act (ADA) improvements. The project will also cover additional improvements such as roof replacement, lighting, flooring, mechanical, electrical, plumbing and drainage improvements.  Quick Build Mobility Program – This project implements quick safety projects for pedestrians, bicyclists, and active transportation. A total of $0.2 million is allocated for this project in FY 2026-27.  Citywide Roof Replacement – This project involves the design of a waterproofing system for roofs that are beyond their useful life including the Beresford Recreation Center, Senior Center, City Hall, Hillsdale Library, and Shoreview Recreation Center. A total of $0.6 million is allocated for this project in FY 2026-27.

Finally, several studies and assessments are underway or planned for the upcoming fiscal year:
 Lakeshore Center Feasibility Study – The City has secured $1.2 million in federal funding to support the expansion of an affordable, full-day preschool for low-income families at the Lakeshore Center. A feasibility study is currently underway to assess options for the facility, including the provision of licensed full-time childcare and the potential for a public-private partnership. Anticipated improvements may include upgrades to plumbing and electrical systems, expansion of administrative space, installation of air conditioning, and compliance with ADA standards. Staff anticipate presenting the findings and recommendations of the feasibility study to the City Council by Fall 2026.
 Corporation Yard Best Use Study – This study will help the City explore future options for the existing site on Pacific Boulevard. This will cover concepts such as an improved corporation yard, a civic building, and various types of mixed-use or multi-zone subdivisions, and will serve as a basis for generating more ideas and gathering public feedback.
 Storm Drain Master Plan – This study is currently underway and will provide a comprehensive, prioritized CIP for the City’s storm drainage/flood control infrastructure around the start of FY 2026-27. Preliminary potential CIP needs were presented to Council in January 2026.

These projects are a testament to the investment and commitment we make to our community even as we face economic and revenue uncertainties. These priority projects, along with other major capital investments, are discussed in detail in the Capital Improvement Program section of this budget document.

Fiscal Reality and Challenges
While we prioritize Council goals and community needs, this budget is developed amidst a complex and uncertain financial environment. We must acknowledge the current fiscal realities, including high inflation, economic uncertainty, and potential revenue shortfalls. Uncertainties related to our tax revenues raise concerns about our financial sustainability.

Additionally, we also face increasing costs to provide services, ongoing pension obligations, and funding limitations for CIP projects.

Tax Revenue Uncertainties
San Mateo relies on tax revenues to fund our core services. Although secured property tax, the City’s largest tax revenue, remains a stable revenue source, this revenue base is projecting a moderate 4.0% annual growth for the next few years.

Sales tax, as the City’s second largest tax revenue, is projected to stay flat with a moderate 1-2% annual growth. The City’s third largest tax revenue, property transfer tax, fluctuates with economic conditions and the housing market. Due to high interest rates and a stable, but slow housing market, property transfer tax is anticipated to grow moderately with a $9.0 million revenue projection for the upcoming year. However, recent potential efforts to eliminate Real Property Transfer Tax at the state level pose a threat to this essential revenue source.

In addition, the City continues to face major financial uncertainty due to the State’s property tax in-lieu of vehicle license fee (VLF). VLF is a key component of the City’s property tax revenues, making up roughly 18% of our total property tax revenues, and about 8% of the total General Fund revenues. The absence of reliable funding sources for VLF from the State of California has become a major threat to the City’s fiscal sustainability. 7 328 of 510

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The City’s FY 2026-27 proposed budget assumes that the State will not honor its VLF obligations to the City. Our share of FY 2023-24 county-wide VLF shortfalls is $6.6 million. Of this total, only $4.4 million has been backfilled to date, leaving an unrestored backfill of $2.2 million. In addition, the City does not anticipate receiving any portion of the $6.9 million FY 2024-25 shortfall repayment during FY 2026-27. These unrecovered funds have already exacerbated the City’s budget deficit and will continue to do so should VLF shortfalls remain unreimbursed.

Pension Costs
Pension obligations continue to place a significant strain on our budget. CalPERS pension contribution requirements have increased significantly over the years due to a number of factors, including CalPERS lower-than-expected investment returns in prior years and changes in actuarial assumptions. The City’s unfunded pension liability is currently about $290 million. Citywide pension costs are expected to continue to go up in FY 2026-27 as they did in FY 2025-26, though not by quite as much. For FY 2025-26, the General Fund pension total increased $1.2 million while an increase of $900,000 is expected in FY 2026-27. Some of the increase is due to historic changes to the unfunded pension liability resulting from the CalPERS’s investment loss of -6.2% in FY 2021-22 and the 5.8% investment gain in FY 2022-23, which did not meet the CalPERS investment projections. In the last two completed fiscal years, CalPERS met its investment objectives with a

9.3% return in FY 2023-24 and a 12.1% in FY 2024-25. Thus, additional increases to the City’s unfunded pension liability are mostly due to updates to the actuarial assumptions. Given this history, the City’s overall pension costs are estimated to gradually keep increasing through FY 2030-31, after which pension requirements are expected to gradually ramp down, provided CalPERS can achieve its 6.8% annual investment return target for future years.

To demonstrate the impact of these increases on General Fund operations, the table below compares expected pension expenditures over the next ten years with our projected sales tax revenue, which is the second largest General Fund revenue source.

As the table indicates, our entire local 1% sales tax is not sufficient to cover the General Fund’s share of the annual pension contribution requirement. This example demonstrates the type of pressure the increase in pension expenditures will put on the General Fund and City operations, as these expenditures are consuming an increasing share of our overall operating revenues.

Table 1: Comparison of General Fund 10-Year Pension Costs and Local 1% Sales Tax Projection (in millions)

FISCAL YEAR

GENERAL FUND

PENSION

NORMAL COSTS

GENERAL FUND

PENSION

UAL REQUIREMENT

GENERAL FUND
TOTAL

PENSION COSTS

PROJECTED
1% SALES TAX

REVENUE

PENSION AS A

PERCENTAGE OF
1% SALES TAX
2025-26 $6.5 $20.5 $27.0 $20.6 131%
2026-27 $6.3 $21.8 $28.1 $20.6 136%
2027-28 $6.4 $22.7 $29.1 $21.0 139%
2028-29 $6.4 $24.6 $31.0 $21.4 145%
2029-30 $6.5 $24.9 $31.4 $21.9 144%
2030-31 $6.5 $25.2 $31.7 $22.3 142%
2031-32 $6.5 $24.5 $31.0 $22.7 136%
2032-33 $6.5 $24.3 $30.8 $23.2 133%
2033-34 $6.6 $23.0 $29.6 $23.7 125%
2034-35 $6.6 $22.5 $29.1 $24.1 121%
* Pension normal cost presents the annual cost of providing pension benefit for active employees based on their one-year service. **UAL (Unfunded Actuarial Liability) requirement is the annual payment based on the amortized dollar amount of the City’s unfunded pension liability.

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Aging City Facilities and Infrastructure
It is well-acknowledged that resources such as parks, open space, playgrounds, libraries, vibrant recreation facilities, smooth and safe streets, storm and flood controls, and clean water infrastructure are the essence of a thriving community.

The City is committed to continuing to invest in our infrastructure and improve our facilities to a level the community deserves. However, maintaining and improving our aged City facilities and infrastructure requires significant funding, and right now, our resources are limited.

Streets and Transportation
Currently, we rely on special revenue sources, including Gas Tax (state gas taxes), Measures A and W (countywide transportation focused sales taxes), Measure M (countywide vehicle license fee), and Road Maintenance and Rehabilitation Account (SB-1 state gas tax) funds, totaling about $9.2 million in FY 2026-27 to fund streets and transportation projects. However, the annual cost of maintaining our streets alone nears $8.0 million, leaving little for other critical projects. To address the funding gap, we often turn to the General Fund and Measure S for extra funding support.

This may become more and more challenging as the General Fund itself is experiencing a significant budget deficit.

Aging City Facilities
The General Fund, which supports all City facility repairs and improvements, faces increasing pressure. Although General Fund and Measure S combined provide about $6.4 million annually to fund CIP projects, the FY 2026-27 contribution proposes a $2 million reduction in General Fund funding for capital projects to help offset some of the anticipated operating deficit. Additionally, the Measure S allocation is reduced to allow the fund to build, given that significant capital budgeting of Measure S funds over the last two years has committed much of the fund’s balance. At the same time, the budget recommends a one-time Measure CC contribution of $1.25 million to help address critical infrastructure needs and offset the lack of General Fund resources. Overall, the anticipated contribution totals from the General Fund, Measure S, and Measure CC are proposed at $4.2 million, with $2.25 million from the General Fund, $0.7 million from Measure S, and $1.25 million from Measure CC.

During FY 2025-26, the City completed the Citywide Comprehensive Facilities Condition Assessment to ensure effective investments and prioritize the many competing needs. Based on Council direction, staff is proposing $6.7 million in allocations from the Capital Investment Reserve to fund various projects identified in the key findings of the assessment.

This funding is proposed to go towards project budget requests in FY 2026-27 for the King Recreation and Swim Center ($4.0 million), New Fire Station 27 ($2.2 million), Downtown Parking Analysis ($0.25 million), and Comprehensive Recreation and Aquatic Facilities Assessment ($0.25 million). This contribution of $6.7 million will leave a remaining balance of $18.3 million in the Capital Investment Reserve and cover funding gaps between the total General Fund, Measure S, and Measure CC contributions and project budget requests in FY 2026-27.

In addition to the proposed projects, many City facility projects were put on hold or deferred due to funding issues. These projects have high-level cost estimates that would need to be further refined at the point of becoming a funded project.

Notable projects on the unfunded list include future phases of the King Center and Fire Station 27 after the currently funded phases are completed, the 28th Avenue Gap Closure project (construction funding), large-scale Marina Lagoon dredging (design and construction), and future full-scale implementation of Master Plan efforts including the forthcoming Storm Drain Master Plan and long-term implementation of the Bike Master Plan. This list highlights the significant need related to City facilities and infrastructure.

Although funding is a challenge, our goal is to continue working collaboratively, exploring funding options, and prioritizing needs to create a plan to build the infrastructure and facilities our community deserves.

Ongoing Fiscal Challenges and Actions
Historically, fiscal responsibility has remained a top priority for our City. Our City Council has continually committed to the prudent fiscal discipline that has upheld our strong financial position. Considered decision-making and proactive planning have allowed us to accumulate healthy reserves. This financial prudence allows the City to maintain current service levels, 9 330 of 510

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invest in necessary improvements, and continue funding important capital projects for the upcoming fiscal year without having to take drastic measures in response to the current revenue uncertainties.

However, the City’s General Fund ten-year forecast, which is included in this proposed budget, has highlighted the long- term financial challenges we face
.

Table 2: General Fund Ten-Year Forecast – Practical Scenario (in millions)

The forecast, based on the middle-ground or “practical” forecasting scenario, assumes that the State and the County will not reach an agreement to fix the VLF funding issue in time for any shortfall reimbursement in FY 2026-27. Beginning in FY 2027-28, the model assumes that the VLF shortfall will be backfilled at 67 percent. Under this scenario, the City can maintain its service levels for a few more years. However, if economic conditions do not improve and no actions are taken to address the budget imbalance, we may risk depleting two of the buckets that make up the City’s General Fund Reserves by FY 2028-29, including the City’s Budget Stabilization and Pension Stabilization Reserves. Furthermore, by FY 2030-31, our General Fund balance may fall short of maintaining the 15% Contingency Reserve.

To balance the budget, the twofold strategy is straightforward – increase revenues and/or reduce spending. Given the current economic uncertainty and unresolved VLF shortfall issue, our revenues are expected to remain flat with only moderate annual growth. This growth will be insufficient to keep pace with our expenditures. To maintain the City’s fiscal sustainability, we are implementing the measures outlined in the Financial Sustainability Plan as well as continuing to evaluate all the other potential revenue enhancement and expense reduction options. Revenue enhancement options include nurturing the economic health of our local businesses, supporting the development of new housing units, reviewing and optimizing fee increases, seeking grant funding, assessing new revenue opportunities, and considering potential future revenue ballot measures. At the same time, the City may employ citywide cost containment strategies to reduce expenses, such as reducing discretionary spending, cutting non-essential programs, implementing hiring freezes, eliminating current vacancies, reducing future vacancies through attrition, and/or implementing furloughs with corresponding service reductions. Additionally, investment in capital projects may be reduced or deferred.

The practical scenario largely adheres to the status quo as we wait for economic conditions to develop. Several variables will impact our financial outlook in the coming years. If the housing market ramps up, our tax revenue forecast may improve. If inflation returns to the Federal Reserve’s 2% target, it will ease some of the rising cost pressures we are currently facing. Also, as long as the current economic uncertainties are managed and we continue to avoid a recession, the City has time to prepare for improved financial sustainability. And we will continue to advocate for VLF funding and look for a long-term solution. While we must be prepared for the worst, we hope that these factors, will turn in our favor.

Future of San Mateo
As the City manages this uncertain fiscal outlook, we anticipate greater clarity at mid-year regarding key factors, including VLF revenues, the status of Real Property Transfer Tax, and the development of global factors. In the interim, the City is fully committed to maintaining high-quality services and prioritizing strategic investments in infrastructure while upholding the Council’s Strategic Plan. Utilizing the information and resources available to us, we will act with intention, GENERAL FUND 2025-26
Est. 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2034-36

REVENUES
Total Revenues 177.2 173.9 180.8 184.6 191.4 193.8 202.8 209.4 211.5 223.3 230.7

EXPENDITURES
Operating Expenses 174.0 183.8 186.2 190.6 195.4 198.9 204.2 209.2 213.3 218.3 223.5 Transfers to CIP 8.9 4.0 6.6 5.9 5.9 5.9 6.5 6.5 6.8 6.8 6.8 Transfers Out - Debt Service & Other 1.3 3.1 3.2 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 Total Expenditures 184.3 190.9 195.9 199.7 204.5 208.1 214.0 219.0 223.4 228.4 233.5 Surplus / (Deficit) (7.1) (17.0) (15.1) (15.1) (13.2) (14.3) (11.2) (9.6) (11.9) (5.1) (2.8) General Fund - Beginning Fund Balance 119.5 87.4 71.9 56.8 41.7 28.5 14.2 3.0 (6.6) (18.5) (23.5) Transfer to Capital Invesment Reserve (25.0)
General Fund - Ending Fund Balance $87.4 $70.3 $56.8 $41.7 $28.5 $14.2 $3.0 ($6.6) ($18.5) ($23.5) ($26.3) 10 331 of 510

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transparency, and prudence. The current year represents a period of careful monitoring and evaluation while the variables at hand evolve. As conditions unfold and we obtain additional insights, we anticipate providing more frequent updates to support timely, informed decisions that best serve the community.

Closing Remarks
As always, the budget process gives me an opportunity to present you with a measured, transparent, and forward-looking budget plan that elevates the City Council’s priorities and the community’s needs. Regardless of the challenges before us, we take pride in utilizing our resources to provide excellent service to our community and bolster the infrastructure that serves as the foundation of our City. We continue our commitment to engaging stakeholders, exploring new revenue options, and considering operational efficiencies, positioning ourselves to proactively address long-term financial challenges while maintaining our core services. Together, we will remain steadfast in our dedication to building a vibrant, dynamic, and resilient community now and into the future.

The development and delivery of the proposed budget to the Council is the culmination of months of work from staff throughout the organization, and it is a true team effort. I would like to thank the City Council for articulating a vision and setting priorities that helped us develop the budget. I would also like to thank my executive team, along with their respective staff members, for their efforts in supporting the budget development process. My thanks also go to the members of the Finance Department, Finance Director Abby Veeser, Deputy Finance Director Paniz Amirnasiri, Budget Manager Renee Halcon, Senior Accounting Assistant Samantha Wong, and Senior Management Analyst Karley Toffey, who drove the process to develop the budget and prepare this budget document. Finally, I commend Public Works Director Matt Fabry, Parks and Recreation Director Joanne Magrini, Deputy Director of Public Works Katherine Sheehan, Sustainability Analyst Andrea Chow and Business Manager Jamie Perez for their overall management of the capital budget and long-term capital plan.

Respectfully submitted,

Alex Khojikian
City Manager
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Budget Overview
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Citywide Sources of Funding

CATEGORY
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Property Tax 86,466,000$ 91,954,000$
Sales Tax 27,946,000 28,501,000
Property Transfer Tax 9,000,000 9,000,000 Transient Occupancy Tax 4,806,667 4,902,333 Business License Tax 8,300,000 8,470,000 Franchises 3,510,000 3,550,000
Building and Other Permits 8,272,000 9,025,100 Capital Contribution 9,586,800 9,876,700 Charges for Services 113,443,614 116,623,314 Department In Lieu Payments 7,865,585 8,020,552 Fines, Forfeitures, and Penalties 2,024,000 2,024,000 Impact Fees 2,625,000 5,725,000
Intergovernmental 12,520,211 11,859,789
Investment Income 12,190,000 11,935,000
Special Assessments 2,657,000 2,697,000 Other 1,531,735 1,525,060
Total Citywide Sources of Funding $ 312,744,612 $ 325,688,848 * Fees and Charges include charges for services, fines, forfeitures, and penalties; franchises; inpact fees; special assessments. **Tax Revenues include property tax, sales tax, property transfer tax, transient occupancy tax, business license tax. 3% 3% 2%
40%
4%4%
44%
0%

CITYWIDE SOURCES OF FUNDING
2026-27 ($312.7 MILLION)
Building and Other Permits
Capital Contribution
Department in Lieu Payments
Fees and Charges
Intergovernmental
Investment Income
Tax Reveues
Other

0.5%
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Citywide Sources of Funding
FUNDS
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
General Funds
General Fund 152,067,146$ 158,791,986 $
Measure S Tracking 6,936,000 7,075,000
Downtown Services 4,464,000 4,457,000
Recreation Services 4,556,000 4,606,000 Golf 3,543,500 3,543,500
General Funds Total 171,566,646$ 178,473,486 $ Special Revenue Funds
Police Grants & Safety Fund 1,258,755$ 420,322 $ Solid Waste 2,968,000 3,003,000
HOME 27,500 27,500
Community Development Block Grant 810,758 740,000 Advance Planning 2,450,000 2,450,000
Construction Services 9,783,500 10,486,925 Gas Tax 3,145,437 3,207,346
City Housing 260,000 260,000
Low and Moderate Income Housing Asset Fund 294,000 294,000 Parks and Recreation Revenue 200,000 1,700,000 Traffic Impact Fee 2,000,000 100,000
Commercial Linkage Fee 600,000 4,100,000 Road Maint and Rehab Acct (RMRA) 3,166,263 3,255,251 Permanent Local Housing Allocation 239,986 239,986 Landfill Bond 100,000 100,000
Special Revenue Funds Total $ 27,304,199 $ 30,384,330 Debt Service Funds
Street and Flood 175,000$ 180,000 $
General Obligation Bonds 1,561,000 1,584,000 2% Hotel Tax 686,667 700,333
Debt Service Funds Total $ 2,422,667
$ 2,464,333
Enterprise Funds
Storm 4,191,000$ 4,313,100$
Sewer 106,545,100 109,518,600
Enterprise Funds Total $ 110,736,100 $ 113,831,700 Internal Service Funds*
Vehicle and Equipment Replacement 2,215,000$ 2,135,000$ Fleet and Building Maintenance 6,321,704 6,847,275 Benefits 54,134,725 55,814,796
Dental 1,202,000 1,238,000
Workers' Compensation 3,100,000 3,181,000 Comprehensive Liability 6,750,000 7,425,000 Internal Service Funds Total $ 73,723,429 $ 76,641,071 Total Citywide Sources of Funding $ 312,744,612 $ 325,688,848 * For Internal Service Funds, only Investment Income is included in Citywide Sources of Funding. 14 335 of 510

Citywide Operating Budget

DEPARTMENT
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
City Attorney 1,854,422$ 1,906,320$
City Clerk 1,508,913 1,216,088
City Council 530,689 546,325
City Manager 4,135,315 4,287,770
Community Development 17,706,885 18,021,524 Finance 4,871,598 5,091,819
Human Resouces 2,979,714 3,099,712
Information Technology 5,512,406 5,906,093 Library 9,920,290 10,446,859
Parks and Recreation 25,075,060 26,203,038 Police 69,397,387 70,152,859
Public Works 59,753,761 58,321,900
San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs 40,719,059 42,347,845 Non-Departmental 46,285,784 47,791,817
Total City Operating Budget $ 290,251,281 $ 295,339,971 * Totals do not include Internal Service Funds.

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Non-Departmental
San Mateo Consolidated Fire Department Contribution
and Fire Legacy Costs
Public Works
Police
Parks and Recreation
Library
Community Development
Citywide Administration*

CITYWIDE OPERATIONS BY DEPARTMENT
2026-27 (290.25 Million)
$21.39
$17.71
$9.92
$25.08
$69.4
$59.75
$40.72
$46.29
San Mateo Consolidated Fire Department
Contribution and Fire Legacy Costs
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Citywide Operating Budget
FUND
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
General Funds
General 162,870,474$ 168,369,611$
Measure S Tracking 2,428,404 2,414,895
Measure CC Tracking 200,000 200,000
Housing Set-Aside 30,000 30,000
Downtown Services 4,815,790 4,977,407
Recreation Services 10,080,835 10,488,868 Golf 3,409,725 3,686,063
General Funds Total 183,835,228$ 190,166,845$ Special Revenue Funds
Police Grants and Safety 1,841,718$ 412,226$ Solid Waste 5,541,712 4,769,120
HOME 10,000 10,000
Community Development Block Grant 416,429 411,420 Advance Planning 2,097,006 2,134,206
Construction Services 14,586,099 14,832,898 City Housing 278,500 273,500
Low and Moderate Income Housing Asset 528,470 535,950 Parks and Recreation Revenue 18,806 19,370 Commercial Linkage Fee 16,663 16,833 Permanent Local Housing Allocation 217,207 217,207 Landfill 112,981 101,950
Special Revenue Funds Total 25,665,591$ 23,734,680$ Debt Service Funds
Street and Flood Control Projects Bond 2,701,671$ 2,702,346$ General Obligation Bonds 2,130,806 2,145,040 2% Hotel Tax 983,800 1,018,800
Debt Service Funds Total 5,816,277$ 5,866,186$ Enterprise Funds
Storm 1,025,827$ 700,145$
Sewer 73,908,358 74,872,115
Enterprise Funds Total 74,934,185$ 75,572,260$ Total City Operating Budget 290,251,281$ 295,339,971$ Internal Service Funds*
Vehicle and Equipment Replacement 11,567,261$ 2,907,761$ Fleet and Building Maintenance 6,616,290 6,739,259 Benefits 53,814,029 55,449,600
Dental 888,000 923,000
Workers’ Compensation 4,413,699 4,440,762 Comprehensive Liability 6,089,600 6,606,616 Internal Service Funds Total 83,388,879$ 77,066,998$ * Informational figures only. Not included in totals since they are already included in departmental budgets. 16 337 of 510

Capital Improvement Projects (CIP) Budget

CIP BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Total City Transfers 69,409,599$ 73,616,969 $ Less Capital Improvement Projects Transfers 53,998,677 61,253,000 Total Operating Transfers 15,410,922$ 12,363,969 $ Total Capital Improvement Projects Transfers 53,998,677 $ 61,253,000 $ Add Capital Improvement Projects Revenue & Fund Balance 12,273,236 8,365,000 Total Capital Improvement Projects Budget 66,271,913 $ 69,618,000 $ 4% 1%
74%
6%
14%
1%

CAPITAL IMPROVEMENT PROJECTS BUDGET
2026-27 ($66.3 MILLION)
General Fund
Measure S
Sewer Fund (Clean Water Program)
Stormwater Fee
Taxes, Fees, and Charges
Other Sources
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Schedule of Transfers
In Out In Out
General Fund
From Measure S Tracking Fund 339,032$ -$ 339,032$ -$ From Construction Services Fund 550,000 - 570,000 - From Gas Tax Fund 1,747,500 - 1,747,500 - To Housing Set Aside Reserve Fund - - - - To 2% Hotel Tax Fund - 200,000 - 250,000 To Downtown Services Fund - 464,234 - 526,357 To Recreation Services Fund - 5,790,656 - 6,021,580 To Capital Projects Fund - 2,000,000 - 4,250,000 To Vehicle and Equipment Replacement Fund - 410,000 - 410,000 Total 2,636,532$ 8,864,890$ 2,656,532$ 11,457,937$ Measure S Tracking Fund
To General Fund -$ 339,032$ -$ 339,032$ To Street and Flood Control Project Fund - 2,500,000 - 2,500,000 To Capital Projects Fund - 700,000 - 2,350,000 Total -$ 3,539,032$ -$ 5,189,032$ Measure CC
To Capital Projects Fund -$ 1,250,000$ -$ -$ Total -$ 1,250,000$ -$ -$ Downtown Services Fund
From General Fund 464,234$ -$ 526,357$ -$ Total 464,234$ -$ 526,357$ -$ Recreation Services Fund
From General Fund 5,790,656$ -$ 6,021,580$ -$ Total 5,790,656$ -$ 6,021,580$ -$

Community Development Block Grant
To Capital Projects Fund -$ 450,000$ -$ 450,000$ Total -$ 450,000$ -$ 450,000$ Construction Services Fund
To General Fund -$ 550,000$ -$ 570,000$ To Capital Projects Fund - - - - Total -$ 550,000$ -$ 570,000$ Gas Tax
To General Fund -$ 1,747,500$ 1,747,500$ To Capital Projects Fund - 2,193,000 1,303,000 Total -$ 3,940,500$ -$ 3,050,500$ Parks and Recreation Revenue Fund
To Capital Projects Fund -$ 975,677$ -$ 1,725,000$ Total -$ 975,677$ -$ 1,725,000$ Traffic Impact Fee Fund
To Capital Projects Fund -$ -$ -$ 200,000$ Total -$ -$ -$ 200,000$ Road Maintenance and Rehabilitation Account Fund
To Capital Projects Fund -$ 3,000,000$ -$ 3,000,000$ Total -$ 3,000,000$ -$ 3,000,000$ Landfill Fund
To Capital Projects Fund -$ 80,000$ -$ -$ Total -$ 80,000$ -$ -$ FUND
2026-27 PROPOSED 2027-28 PROJECTED
Transfer Transfer
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Schedule of Transfers
In Out In Out
Street and Flood Control Project Fund
From Measure S Tracking Fund 2,500,000 $ - $ 2,500,000$ -$ Total 2,500,000$ -$ 2,500,000$ -$ 2% Hotel Tax Fund
From General Fund 200,000$ -$ 250,000$ -$ Total 200,000$ -$ 250,000$ -$ Storm Fund
To Capital Projects Fund -$ 3,375,000$ -$ 3,550,000$ Total -$ 3,375,000$ -$ 3,550,000$ Sewer Fund
To Capital Projects Fund -$ 39,925,000$ -$ 44,325,000$ Total -$ 39,925,000$ -$ 44,325,000$ Vehicle and Equipment Replacement Fund
From General Fund 410,000$ -$ 410,000$ -$ To Fleet and Building Maintenance Fund - 410,000 - - To Capital Projects Fund - 50,000 - 100,000 Total 410,000$ 460,000$ 410,000$ 100,000$ Fleet and Building Maintenance Fund
From Vehicle and Equipment Replacement Fund 410,000$ -$ -$ -$ Total 410,000$ -$ -$ -$ Workers' Compensation Fund
To Comprehensive Liability Fund -$ 3,000,000$ -$ -$ Total -$ 3,000,000$ -$ -$ Comprehensive Liability Fund
From Workers' Compensation Fund 3,000,000$ -$ -$ -$ Total 3,000,000$ -$ -$ -$ Capital Projects Fund
From General Fund 2,000,000$ -$ 4,250,000$ -$ From Measure S Tracking Fund 700,000
- 2,350,000 -
From Measure CC Fund 1,250,000 - - - From Community Development Block Grant 450,000 - 450,000 - From Gas Tax Fund 2,193,000 - 1,303,000 - From Parks and Recreation Revenue Fund 975,677 - 1,725,000 - From Traffic Impact Fee Fund - - 200,000 - From Road Maintenance and Rehabilitation Account Fund 3,000,000 - 3,000,000 - From Landfill Fund 80,000 - - - From Storm Fund 3,375,000 - 3,550,000 - From Sewer Fund 39,925,000 - 44,325,000 - From Vehicle and Equipment Replacement Fund 50,000 - 100,000 - Total 53,998,677$ -$ 61,253,000$ -$ Total City Transfers $ 69,410,099 $ 69,410,099 $ 73,617,469 $ 73,617,469 2026-27 PROPOSED 2027-28 PROJECTED
Transfer TransferFUND
19 340 of 510

Full Time Equivalent (FTE) Personnel
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
All Funds All Funds All Funds
By Department
City Attorney 5.00 5.00 5.00 City Clerk 4.88 4.63 4.63 City Council 5.00 5.00 5.00 City Manager 9.00 12.38 12.38 Community Development 57.92 57.96 57.96 Finance 19.00 19.00 19.00 Human Resources 13.48 13.96 12.96 Information Technology 14.23 14.23 14.23 Library 49.73 51.23 51.23 Parks and Recreation 116.17 113.38 113.38 Police 175.96 177.10 177.10 Public Works 167.04 166.00 166.00 Total City 637.41 639.87 638.87 By Type
Merit 554.13 557.13 556.13
Per Diem 83.28 82.74 82.74 Total City 637.41 639.87 638.87 20 341 of 510

Pension Long-Term Forecast
(In millions) 2023-24

ACTUALS
2024-25

ACTUALS
2025-26

ESTIMATES
2026-27

PROPOSED
2027-28

PROJECTED
Pension Contribution 1 - By Plan
Miscellaneous $ 10.6 $ 11.8 $ 11.8 $ 12.6 $ 13.0 Safety 17.1 18.4 20.1 20.8 21.4 Total Pension Contribution - By
Plan 27.7$ 30.2$ 31.8$ 33.4$ 34.4$ Pension Contribution 1 - By Type
Normal Costs $ 7.4 $ 7.4 $ 8.0 $ 7.9 $ 7.9 Unfunded Actuarial Liability (UAL) 20.3 22.8 23.9 25.5 26.5 Total Pension Contribution - By
Type 27.7$ 30.2$ 31.8$ 33.4$ 34.4$ Actuarial Unfunded Liabilities
Miscellaneous $ 100.3 $ 100.8 $ 95.5 $ 93.4 $ 90.3 Safety 198.1 199.1 189.2 184.8 179.3 Total Actuarial Unfunded Liabilities 298.4$ 299.9$ 284.6$ 278.1$ 269.5$ Funded Percentage
Miscellaneous 70% 71% 73% 75% 76%
Safety 60% 61% 63% 65% 67%
Total Funded Percentage 64% 65% 68% 69% 71%
Total Pension Contribution as % of
Covered Payroll
3 Miscellaneous 28% 30% 28% 29% 30%
Safety 96% 102% 99% 100% 100%
Total Total Pension Contribution as
% of Covered Payroll 50% 53% 51% 52% 53%
Pension Contribution as % of
General Fund Expenditures 2
Miscellaneous 7% 7% 7% 7% 7%
Safety 11% 11% 11% 11% 12%
Total Pension Contribution as % of
General Fund Expenditures 18% 18% 18% 18% 19%
1 This is the City's pension cost before accounting for employees' cost-sharing. 2 General Fund Expenditures only. Transfers out is not included. 3 Percentage increases for Safety plan are primarily due to the City's fire operations transferred to a new JPA agency in January 2019, resulting in less covered payroll but with the unfunded liabilities remaining as the City's responsibility. 21 342 of 510

Pension Long-Term Forecast
2028-29

FORECAST
2029-30

FORECAST
2030-31

FORECAST
2031-32

FORECAST
2032-33

FORECAST
2033-34

FORECAST
2034-35

FORECAST
$ 14.1 $ 14.2 $ 14.4 $ 14.1 $ 14.0 $ 13.4 $ 13.2

22.7 23.0 23.2 22.8 22.6 21.7 21.4

36.8$ 37.3$ 37.6$ 36.8$ 36.6$ 35.2$ 34.6$ $ 8.0 $ 8.1 $ 8.1 $ 8.2 $ 8.2 $ 8.3 $ 8.3

28.8 29.2 29.5 28.6 28.4 26.9 26.3

36.8$ 37.3$ 37.6$ 36.8$ 36.6$ 35.2$ 34.6$ $ 86.6 $ 81.6 $ 76.2 $ 70.4 $ 64.5 $ 58.4 $ 52.5 172.7 164.3 155.0 144.8 134.4 123.4 112.7 259.3$ 245.9$ 231.2$ 215.2$ 198.9$ 181.8$ 165.2$ 78% 80% 81% 83% 85% 87% 88%
68% 70% 73% 75% 77% 79% 81%
72% 74% 76% 78% 80% 82% 84%
31% 31% 30% 29% 28% 26% 25%
103% 102% 100% 95% 92% 86% 82%
55% 54% 53% 50% 49% 46% 44%
7% 7% 7% 7% 7% 6% 6%
12% 12% 12% 11% 11% 10% 10%
20% 19% 19% 18% 18% 17% 16%
22 343 of 510

General Fund
23 344 of 510

General Fund Summary

GENERAL FUND
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Resources
Property Tax $ 85,030,000 $ 90,470,000 Sales Tax - Local 1% 20,600,000 21,012,000 Sales Tax - Prop 172 410,000 414,000 Sales Tax - 1/4% Measure S 6,936,000 7,075,000 Property Transfer Tax 9,000,000 9,000,000 Transient Occupancy Tax 4,120,000 4,202,000 Business License Tax 8,300,000 8,470,000 Franchises 3,510,000 3,550,000 Golf Fees 3,543,500 3,543,500 Recreation Service Charges 4,450,000 4,500,000 Permits, Fees, and Fines 7,710,000 8,020,000 Intergovernmental 3,490,000 3,590,000 Interest and Miscellaneous 6,600,000 6,600,000 Transfers In - In Lieu Charges 5,166,000 5,321,000 Transfers In - Rent from Sewer Fund 2,700,000 2,700,000 Transfers In - Construction Services 550,000 570,000 Transfers In - Gas Tax 1,747,500 1,747,500 Current Resources $ 173,863,000 $ 180,785,000 Use Unassigned Fund Balance $ 17,032,228 $ 19,142,000 Total Resources $ 190,895,228 $ 199,927,000 Expenditures by Department
City Attorney $ 1,409,817 $ 1,448,378 City Clerk 1,508,913 1,216,088 City Council 530,689 546,325 City Manager 3,511,210 3,644,942 Community Development 2,223,033 2,333,468 Finance 4,640,623 4,853,915 Human Resources 2,818,540 2,933,703 Information Technology 5,354,423 5,743,371 Library 9,920,290 10,446,859 Parks and Recreation 25,042,604 26,169,608 Police 67,365,783 69,545,050 Public Works 11,690,968 11,763,696 Non-Departmental 7,099,127 7,173,596 Transfers Out 7,060,000 9,760,000 San Mateo Consolidated Fire Department Constribution and Fire Legacy Costs 40,719,208 42,348,000 Total Expenditures $ 190,895,228 $ 199,927,000 Resources Over / (Under) Expenditures $ - $ - 24 345 of 510

General Fund Summary
*Department totals shown in millions.
**Citywide Administration includes these departments: City Attorney, City Clerk, City Council, City Manager, Finance, Human Resources, and Information Technology.

City Administration
$19.8
Community
Development
$2.2
Library
$9.9
Parks and
Recreation
$25.0
Police
$67.4
Public Works
$11.7
Non-Departmental
$7.1
Transfers Out
$7.1
San Mateo
Consolidated Fire
Department
Constribution and Fire
Legacy Costs
$40.7

GENERAL FUND

OPERATING BUDGET BY DEPARTMENT
2026-27 ($190.9 MILLION)
25 346 of 510

GENERAL FUND 10-YEAR FORECAST
2024-25

ACTUALS
2025-26

ESTIMATED

ACTUALS
2026-27

PROPOSED
2027-28

FORECAST
2028-29

FORECAST

REVENUES
Property Tax 83,534,637$ 87,218,911$ 85,030,000$ 90,470,000$ 93,994,000$ Sales Tax - Local 1% 19,961,410 20,600,000 20,600,000 21,012,000 21,432,000 Sales Tax - Prop 172 395,277 400,000 410,000 414,000 418,000 Sales Tax - 1/4% Measure S 6,761,850 6,800,000 6,936,000 7,075,000 7,217,000 Property Transfer Tax 11,038,171 9,000,000 9,000,000 9,000,000 9,000,000 Measure CC 6,205,147 1,892,375 - - - Business License Tax 7,194,377 8,100,000 8,300,000 8,470,000 8,640,000 Transient Occupancy Tax 4,702,015 4,300,000 4,120,000 4,202,000 4,286,000 Franchises 3,485,831 3,480,000 3,510,000 3,550,000 3,590,000 Golf Fees 3,458,094 3,343,500 3,543,500 3,543,500 3,610,000 Recreation Service Charges 4,300,763 4,358,000 4,450,000 4,500,000 4,640,000 Permits, Fees, and Fines 8,203,943 7,731,708 7,710,000 8,020,000 8,260,000 Intergovernmental 4,800,016 3,456,445 3,490,000 3,590,000 3,660,000 Interest and Miscellaneous 8,523,867 7,338,712 6,600,000 6,600,000 5,350,000 Transfers In - In Lieu Charges 4,906,546 5,070,896 5,166,000 5,321,000 5,480,000 Transfers In - Rent from Sewer Fund 1,800,000 1,800,000 2,700,000 2,700,000 2,700,000 Transfers In - Construction Services 788,000 530,000 550,000 570,000 590,000 Transfers In - Gas Tax 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 TOTAL REVENUES 179,094,076$ 177,168,047$ 173,863,000$ 180,785,000$ 184,614,500$

EXPENDITURES
Salaries and Wages 55,543,366$ 57,400,000$ 60,455,236$ 62,269,000$ 63,514,000$ Benefits 22,061,151 21,300,000 23,224,167 24,180,000 25,410,000 Pension Unfunded Liability (UAL) 12,984,027 13,364,142 14,292,617 15,016,000 16,326,000 Non-Personnel Operating 37,677,028 43,218,259 45,144,000 46,354,000 47,459,000 SMC Fire and Legacy Costs 36,095,951 38,761,532 40,719,208 42,348,000 42,348,000 Transfers Out 13,288,868 10,256,215 7,060,000 9,760,000 9,160,000 Budget Savings - (4,000,000) (4,500,000) TOTAL EXPENDITURES 177,512,556$ 184,300,148$ 190,895,228$ 195,927,000$ 199,717,000$ Resources Over / (Under) Requirements 1,581,520$ (7,132,101)$ (17,032,228)$ (15,142,000)$ (15,102,500)$ Transfers Out to CIP Investment Reserve (25,000,000)$
Beginning Fund Balance 117,931,895$ 119,513,415$ 87,381,314$ 71,913,634$ 56,771,634$ Ending Fund Balance 119,513,415$ 87,381,314$ 70,349,087$ 56,771,634$ 41,669,134$ 26 347 of 510

GENERAL FUND 10-YEAR FORECAST
2029-30

FORECAST
2030-31

FORECAST
2031-32

FORECAST
2032-33

FORECAST
2033-34

FORECAST
2034-35

FORECAST
2035-36

FORECAST
99,498,000$ 100,840,000$ 108,668,000$ 113,532,000$ 114,438,000$ 124,434,000$ 130,014,000$ 21,861,000 22,298,000 22,744,000 23,199,000 23,663,000 24,136,000 24,619,000 422,000 426,000 430,000 434,000 438,000 442,000 446,000 7,361,000 7,508,000 7,658,000 7,811,000 7,967,000 8,126,000 8,289,000 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 - - - - - - - 8,810,000 8,990,000 9,170,000 9,350,000 9,540,000 9,730,000 9,920,000 4,372,000 4,459,000 4,548,000 4,639,000 4,732,000 4,827,000 4,924,000 3,630,000 3,670,000 3,710,000 3,750,000 3,790,000 3,830,000 3,870,000 3,680,000 3,750,000 3,830,000 3,910,000 3,990,000 4,069,800 4,151,196 4,780,000 4,920,000 5,070,000 5,220,000 5,380,000 5,540,000 5,710,000 8,510,000 8,770,000 9,030,000 9,300,000 9,580,000 9,870,000 10,170,000 3,730,000 3,800,000 3,880,000 3,960,000 4,040,000 4,120,000 4,200,000 5,000,000 4,500,000 4,000,000 4,000,000 3,500,000 3,500,000 3,500,000 5,640,000 5,810,000 5,980,000 6,160,000 6,340,000 6,530,000 6,730,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 610,000 630,000 650,000 670,000 690,000 710,000 730,000 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 191,351,500$ 193,818,500$ 202,815,500$ 209,382,500$ 211,535,500$ 223,312,300$ 230,720,696$ 64,784,000$ 66,728,000$ 68,730,000$ 70,792,000$ 72,916,000$ 75,103,000$ 77,356,000$ 25,910,000 26,690,000 27,490,000 28,320,000 29,170,000 30,040,000 30,940,000 16,538,000 16,704,000 16,229,000 16,097,000 15,229,000 14,879,000 14,308,000 48,595,000 49,763,000 50,965,000 52,201,000 53,472,000 54,780,000 56,126,000 44,042,000 44,042,000 45,778,000 46,808,000 47,540,000 48,536,000 49,727,001 9,160,000 9,160,000 9,810,000 9,810,000 10,060,000 10,060,000 10,060,001 (4,500,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (4,999,999) 204,529,000$ 208,087,000$ 214,002,000$ 219,028,000$ 223,387,000$ 228,398,000$ 233,517,003$ (13,177,500)$ (14,268,500)$ (11,186,500)$ (9,645,500)$ (11,851,500)$ (5,085,700)$ (2,796,307)$ 41,669,134$ 28,491,634$ 14,223,134$ 3,036,634$ (6,608,866)$ (18,460,366)$ (23,546,066)$ 28,491,634$ 14,223,134$ 3,036,634$ (6,608,866)$ (18,460,366)$ (23,546,066)$ (26,342,373)$ 27 348 of 510

Departments
28 349 of 510

City Attorney

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 1,653,252$ 1,721,085 $ 1,772,718 $ Operating 5,222,800 6,155,235 6,670,000
Indirect & Overhead 66,978 67,701 70,218
Total Expenditures $ 6,943,030 $ 7,944,022 $ 8,512,936 Funding Sources
General Funds 1,362,186$ 1,409,817$ 1,448,378$ Special Revenue Funds
278,375 319,617 329,206
Enterprise Funds 118,039 124,988 128,737
Internal Service Funds 5,184,430 6,089,600 6,606,616 Total Funding Sources $ 6,943,030 $ 7,944,022 $ 8,512,936

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
City Attorney 1.00 1.00 1.00
Senior Assistant City Attorney 1.00 1.00 1.00
Assistant City Attorney 2.00 2.00 2.00
Executive Secretary To City Attorney 1.00 1.00 1.00
Total Merit 5.00 5.00 5.00
Total Per Diem - - -
Total Positions 5.00 5.00 5.00
29 350 of 510

City Clerk

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 997,777$ 1,023,324$ 1,054,024 $ Operating 89,492 481,759 152,834 Indirect & Overhead 10,623 3,829 9,229 Total Expenditures 1,097,892$ $ 1,508,913 $ 1,216,088 Funding Sources
General Funds 1,097,892$ 1,508,913$ 1,216,088$ Total Funding Sources 1,097,892$ $ 1,508,913 $ 1,216,088

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
City Clerk 1.00 1.00 1.00 Assistant To The City Clerk 1.63 1.63 1.63 Deputy City Clerk 1.00 1.00 1.00 Management Analyst I/II 1.00 1.00 1.00 Total Merit 4.63 4.63 4.63 Total Per Diem 0.25 - - Total Positions 4.88 4.63 4.63 30 351 of 510

City Council

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 133,099$ 158,841 $ 163,606 $ Operating 417,256 370,931 380,508 Indirect & Overhead 13,450 917 2,211 Total Expenditures 563,805$ $ 530,689 $ 546,325 Funding Sources
General Funds 563,805$ 530,689 546,325 Total Funding Sources 563,805$ $ 530,689 $ 546,325

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
City Council Member 5.00 5.00 5.00 Total Merit 5.00 5.00 5.00 Total Per Diem - - - Total Positions 5.00 5.00 5.00 31 352 of 510

City Manager

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 2,496,059$ 2,776,165$ 2,860,215$ Operating 1,195,600 1,343,410 1,409,470
Indirect & Overhead 18,189 15,740 18,085
Total Expenditures 3,709,848$ $ 4,135,315 $ 4,287,770 Funding Sources
General Funds 3,137,340$ 3,511,210$ 3,644,942$ Special Revenue Funds
481,670 546,957 563,366
Enterprise Funds 90,838 77,148 79,462
Total Funding Sources 3,709,848$ $ 4,135,315 $ 4,287,770

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
City Manager 1.00 1.00 1.00
Assistant City Manager 1.00 1.00 1.00
Business Manager - 1.00 1.00
Communications Manager 1.00 1.00 1.00
Communications & Engagement Coordinatior I/II 1.00 1.00 1.00 Economic Development Manager 1.00 1.00 1.00
Executive Secretary To City Manager 1.00 1.00 1.00
Management Analyst I/II 1.00 1.00 1.00
Sr. Management Analyst 1.00 1.00 1.00
Sustainability Analyst 1.00 - -
Fellow I/II (Limited Term) * - 3.00 3.00
Total Merit 9.00 12.00 12.00
Total Per Diem - 0.38 0.38
Total Positions 9.00 12.38 12.38
*Unfunded positions can only be utilized with one-time funding to address strategic plan priority initiatives 32 353 of 510

Community Development Department

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 11,365,964$ 12,051,683 $ 12,409,482 $ Operating 4,937,415 3,881,515 3,906,150 Indirect & Overhead 1,509,794 1,773,687 1,705,892 Total Expenditures 17,813,173$ $ 17,706,885 $ 18,021,524 Funding Sources
General Funds 2,082,117$ 2,223,033$ 2,333,468$ Special Revenue Funds 15,731,056 15,483,852 15,688,056 Total Funding Sources 17,813,173$ $ 17,706,885 $ 18,021,524 33 354 of 510

Community Development Department

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Community Development Director 1.00 1.00 1.00 Administrative Assistant 4.00 4.00 4.00 Administrative Technician 1.00 1.00 1.00 Associate Planner 6.00 6.00 6.00 Building Inspector I/II 7.00 7.00 7.00 Business Manager 1.00 1.00 1.00 Code Enforcement Manager 1.00 1.00 1.00 Code Enforcement Officer I/II 3.00 3.00 3.00 Deputy Building Official 1.00 1.00 1.00 Deputy Community Development Director 1.00 1.00 1.00 Deputy Community Development Director/Building Official 1.00 1.00 1.00 Development Review Technician 5.00 5.00 5.00 Housing and Neighborhood Services Manager 1.00 1.00 1.00 Housing Specialist I/II 3.00 3.00 3.00 Inspection Supervisor 1.00 1.00 1.00 Managing Arborist 1.00 1.00 1.00 Management Analyst I/II - 1.00 1.00 Office Assistant I/II 2.00 2.00 2.00 Permit Center Supervisor 1.00 1.00 1.00 Plan Check Supervisor 1.00 1.00 1.00 Plan Check Engineer 5.00 5.00 5.00 Planning Manager 1.00 1.00 1.00 Principal Planner 2.00 2.00 2.00 Senior Business Systems Analyst 1.00 - - Senior Code Enfocement Officer 1.00 1.00 1.00 Senior Development Review Technician 2.00 2.00 2.00 Senior Mangement Analyst 1.00 1.00 1.00 Senior Planner 2.00 2.00 2.00 Total Merit 57.00 57.00 57.00 Total Per Diem 0.92 0.96 0.96 Total Positions 57.92 57.96 57.96 34 355 of 510

Finance

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 3,428,138$ 3,785,126 $ 3,896,730 $ Operating 767,800 781,000 797,000 Indirect & Overhead 361,688 305,472 398,089 Total Expenditures 4,557,626$ $ 4,871,598 $ 5,091,819 Funding Sources
General Funds 4,396,466$ 4,640,623$ 4,853,915$ Special Revenue Funds 78,821 86,972 89,581 Enterprise Funds 82,339 144,003 148,323 Total Funding Sources 4,557,626$ $ 4,871,598 $ 5,091,819

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Finance Director 1.00 1.00 1.00 Accountant I/II 2.00 2.00 2.00 Accounting Assistant I/II 4.00 4.00 4.00 Accounting Manager 1.00 1.00 1.00 Budget Manager 1.00 1.00 1.00 Deputy Finance Director 1.00 1.00 1.00 Finance Specialist I/II 1.00 1.00 1.00 Payroll Analyst I/II - 1.00 1.00 Payroll Supervisor 1.00 1.00 1.00 Payroll Technician I/II 2.00 1.00

1.00 Senior Accountant 2.00 2.00 2.00 Senior Accounting Assistant 2.00 2.00 2.00 Senior Management Analyst 1.00 1.00 1.00 Total Merit 19.00 19.00 19.00 Total Per Diem - - - Total Positions 19.00 19.00 19.00 35 356 of 510

Human Resources

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 2,652,593$ 3,079,169 $ 3,216,558 $ Operating 4,579,348 5,067,348 5,102,348 Indirect & Overhead 144,282 134,895 144,569 Total Expenditures 7,376,223$ $ 8,281,412 $ 8,463,474 Funding Sources
General Funds 2,766,969$ 2,818,540 $ 2,933,703 $ Enterprise Funds 138,700 161,174 166,009 Internal Service Funds 4,470,554 5,301,699 5,363,762 Total Funding Sources 7,376,223$ $ 8,281,412 $ 8,463,474

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Human Resources Director 1.00 1.00 1.00 Deputy Human Resources Director 1.00 1.00 1.00 Human Resources Analyst 1.00 1.00 1.00 Human Resources Technician * 4.00 4.00 3.00 Human Resources Information System Analyst I/II 1.00 1.00 1.00 Senior Human Resources Analyst 4.00 4.00 4.00 Senior Human Resources Analyst Risk Manager 1.00 1.00 1.00 Total Merit 13.00 13.00 12.00 Total Per Diem 0.48 0.96 0.96 Total Positions 13.48 13.96 12.96 *1.00 FTE HR Technician is a 2 year limited term position starting FY 2025/26. 36 357 of 510

Information Technology

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 3,276,094$ 3,358,775 $ 3,424,271 $ Operating 1,911,964 1,882,516 1,857,527 Indirect & Overhead 212,600 271,114 624,295 Capital Outlay 17,680 - - Total Expenditures 5,418,338$ $ 5,512,406 $ 5,906,093 Funding Sources
General Funds 5,283,528$ 5,354,423$ 5,743,371$ Special Revenue Funds 134,810 157,983 162,722 Total Funding Sources 5,418,338$ $ 5,512,406 $ 5,906,093

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Information Technology Director 1.00 1.00 1.00 Consulting And Applications Manager 1.00 1.00 1.00 Customer Service Manager 1.00 1.00 1.00 GIS Coordinator 1.00 1.00 1.00 GIS Technician I/II 1.00 1.00 1.00 IS Support Technician I/II 2.00 2.00 2.00 Network Analyst 1.00 1.00 1.00 Senior IS Support Technician 1.00 1.00 1.00 Senior Systems Analyst 1.00 1.00 1.00 Systems Analyst I/II 2.00 2.00

2.00 Systems And Network Manager 1.00 1.00 1.00 Web Specialist 1.00 1.00 1.00 Total Merit 14.00 14.00 14.00 Total Per Diem 0.23 0.23 0.23 Total Positions 14.23 14.23 14.23 37 358 of 510

Library

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 6,560,289$ $ 6,763,230 $ 6,979,645 Operating 2,531,484 2,386,066 2,465,006
Indirect & Overhead 932,676 770,993 1,002,209
Total Expenditures 10,024,449$ $ 9,920,290 $ 10,446,859 Funding Sources
General Funds 10,024,449$ $
9,920,289 $ 10,446,859
Total Funding Sources $
Full Time Equivalent (FTE) Personnel
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
City Librarian 1.00 1.00 1.00
Administrative Technician 1.00 1.00 1.00
Community Services Coordinator 1.50 1.50 1.50
Deputy City Librarian 1.00 1.00 1.00
Executive Assistant 1.00 1.00 1.00
Librarian I/II 9.63 9.63 9.63
Library Assistant I/II 9.75 9.75 9.75
Library Technology Specialist 1.00 1.00 1.00
Literacy Program Coordinator 1.00 1.00 1.00
Literacy Specialist 0.63 0.63 0.63
Senior Accounting Assistant 1.00 1.00 1.00
Senior Library Assistant 3.00 3.00 3.00
Senior Management Analyst 1.00 1.00 1.00
Supervising Librarian 3.00 3.00 3.00
Supervising Library Assistant 1.00 1.00 1.00
Total Merit 36.50 36.50 36.50
Total Per Diem 13.23 14.73 14.73
Total Positions 49.73 51.23 51.23
10,024,449 $ 9,920,290 $ 10,446,859 38 359 of 510

Parks and Recreation

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 12,938,837$ 13,936,461 $ 14,287,487 $ Operating 8,437,701 9,008,528 9,146,442
Indirect & Overhead 2,117,151 2,130,071 2,769,109
Capital Outlay 26,000 - -
Total Expenditures 23,519,690$ $ 25,075,060 $ 26,203,038 Funding Sources
General Funds 23,519,690$ 25,042,604$ 26,169,608$ Special Revenue Funds
18,806 19,370
Enterprise Funds 13,650 14,060
Total Funding Sources 23,519,690$ $ 25,075,060 $ 26,203,038 -
-
39 360 of 510

Parks and Recreation

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Parks and Recreation Director 1.00 1.00 1.00 Administrative Technician 3.00 3.00 3.00 Business Manager 1.00 1.00 1.00 Communications & Public Relations Analyst 1.00 1.00 1.00 Community Services Coordinator 9.00 9.00 9.00 Community Services Manager 1.00 1.00 1.00 Community Services Section Manager 3.00 3.00 3.00 Community Services Supervisor 6.00 6.00 6.00 Custodian 1.00 1.00 1.00 Deputy Parks and Recreation Director 1.00 1.00 1.00 Golf Course Maintenance Supervisor 1.00 1.00 1.00 Golf Equipment Maintenance Specialist 1.00 1.00 1.00 Golf Services Manager 1.00 1.00 1.00 Irrigation Specialist 2.00 2.00 2.00 Landscape Laborer / Landscape Mainenance Worker I/II 18.00 18.00 18.00 Lead Teacher 2.00 2.00 2.00 Managing Arborist 1.00 1.00 1.00 Park and Landscape Maintenance Supervisor 1.00 1.00 1.00 Park and Landscape Manager 1.00 1.00 1.00 Senior Park Landscape Maintenance Worker 3.00 3.00 3.00 Senior Park Ranger 1.00 1.00 1.00 Senior Program Assistant 5.00 5.00

5.00 Senior Project Manager 1.00 1.00 1.00 Tree Maintenance Specialist 1.00 1.00 1.00 Total Merit 66.00 66.00 66.00 Total Per Diem 50.17 47.38 47.38 Total Positions 116.17 113.38 113.38 40 361 of 510

Police

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 57,488,167$ 58,328,370 $ 59,492,702 $ Operating 9,841,303 10,384,114 9,660,958 Indirect & Overhead 990,552 684,903 999,199 Capital Outlay 77,000 - - Total Expenditures 68,397,022$ $ 69,397,387 $ 70,152,859 Funding Sources
General Funds 66,284,980$ 67,365,783$ 69,545,050$ Special Revenue Funds 2,112,042 2,031,604 607,809 Total Funding Sources 68,397,022$ $ 69,397,387 $ 70,152,859 41 362 of 510

Police

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Chief of Police 1.00 1.00 1.00 Administrative Assistant 2.00 2.00 2.00 Administrative Technician 1.00 1.00 1.00 Business Manager 1.00 1.00 1.00 Community Service Officer I/II 6.00 6.00 6.00 Dispatch Services Supervisor 2.00 2.00 2.00 Dispatcher 12.00 12.00 12.00 Executive Assistant 1.00 1.00 1.00 Management Analyst I/II 1.00 1.00 1.00 Police Captain 2.00 2.00 2.00 Police Communications & Public Relations Analyst 1.00 1.00 1.00 Police Digital Forensic Specialist 1.00 1.00 1.00 Police Evidence Analyst 1.00 1.00 1.00 Police Lieutenant 6.00 6.00 6.00 Police Officer 90.00 90.00 90.00 Police Records Specialist I/II 5.00 5.00 5.00 Police Records Supervisor 2.00 2.00 2.00 Police Sergeant 17.00 17.00 17.00 Police Support Services Analyst 1.00 1.00 1.00 Police Technical Services Administrator 1.00 1.00 1.00 Real Time Information Center Coordinator 1.00 1.00 1.00 Senior Business Systems Analyst 1.00 1.00 1.00 Senior Community Service Officer 1.00 1.00 1.00 Senior Dispatcher 2.00 2.00 2.00 Senior Police Records Specialist 2.00 2.00 2.00 Senior Management Analyst 1.00 1.00 1.00 Vechicle Abatement Officer 2.00 2.00 2.00 Total Merit 164.00 164.00 164.00 Total Per Diem 11.96 13.10 13.10 Total Positions 175.96 177.10 177.10 42 363 of 510

Public Works

FINANCIALS
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Personnel 26,277,350$ 28,323,142 $ 28,927,204 $ Operating 27,874,388 32,950,168 31,989,596 Indirect & Overhead 3,699,749 5,705,929 4,129,776 Capital Outlay 1,807,800 - - Total Expenditures 59,659,287$ $ 66,979,239 $ 65,046,576 Funding Sources
General Funds 10,016,466$ 11,690,968$ 11,763,696$ Special Revenue Funds 6,373,298 7,630,239 6,261,487 Enterprise Funds 37,024,169 41,041,741 40,282,133 Internal Service Funds 6,245,354 6,616,290 6,739,259 Total Funding Sources 59,659,287$ $ 66,979,239 $ 65,046,576 43 364 of 510

Public Works

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Public Works Director 1.00 1.00 1.00 Administrative Assistant 5.00 5.00 5.00 Administrative Technician 2.00 2.00 2.00 Associate Engineer 14.00 14.00 14.00 Associate Transportation Planner 2.00 2.00 2.00 Building Maintenance Supervisor 1.00 1.00 1.00 Business Manager 1.00 1.00 1.00 Calibration Technician 1.00 1.00 1.00 Central Services Worker 1.00 1.00 1.00 Construction Inspector I/II 4.00 4.00 4.00 Deputy Director 2.00 2.00 2.00 Downtown Coordinator 1.00 1.00 1.00 Engineer Manager 4.00 4.00 4.00 Engineering Technician I/II 5.00 5.00 5.00 Environmental Compliance Inspector 3.00 3.00 3.00 Environmental Programs Coordinator 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 Facilities and Fleet Services Manager 1.00 1.00 1.00 Facility Maintenance Worker 4.00 4.00 4.00 Field Maintenance Manager 1.00 1.00 1.00 Fleet Services Supervisor 1.00 1.00 1.00 Instrument Control Technician 1.00 1.00 1.00 Laboratory Analyst I/II/III 4.00 4.00 4.00 Laboratory Supervisor 1.00 1.00 1.00 Laborer 1.00 1.00 1.00 Maintenance Planner 2.00 2.00 2.00 Maintenance Worker I/II 26.00 26.00 26.00 Management Analyst I/II 3.00 3.00 3.00 Principal Transportation Planner 1.00 1.00 1.00 Project Manager I/II 3.00 3.00 3.00 Public Works Maintenance Leadworker 3.00 3.00 3.00 Public Works Supervisor 4.00 4.00 4.00 Pump Station Mechanic I/II 3.00 3.00 3.00 Pump Station Mechanic III 1.00 1.00 1.00 Regulatory Complaince Manager 1.00 1.00 1.00 Senior Engineer 7.00 7.00 7.00 Senior Facility Maintenance Worker 3.00 3.00 3.00 Senior I&C Technician 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 Solid Waste and Recycling Program Coordinator 1.00 1.00 1.00 44 365 of 510

Public Works

FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Solid Waste Technician 2.00 2.00 2.00 Traffic and Light Technician 2.00 2.00 2.00 Traffic Safety Worker 3.00 3.00 3.00 WWTP Electrical Technician 2.00 2.00 2.00 WWTP Maintenance Superintendent 1.00 1.00 1.00 WWTP Manager 1.00 1.00 1.00 WWTP Mechanic I/II 6.00 6.00 6.00 WWTP Mechanic III 2.00 2.00 2.00 WWTP Operations Superintendent 1.00 1.00 1.00 WWTP Operator In-Training I/II 10.00 10.00 10.00 WWTP Operator III 5.00 5.00 5.00 WWTP Shift Supervisor 2.00 2.00 2.00 Waste Management Supervisor 1.00 1.00 1.00 Total Merit 161.00 161.00 161.00 Total Per Diem 6.04 5.00 5.00 Total Positions 167.04 166.00 166.00 45 366 of 510

Non-Departmental
Financials
2025-26

ADJUSTED
BUDGET
2026-27

PROPOSED
BUDGET
2027-28

PROJECTED
BUDGET
Expenditures by Category
Operating 68,750,147$ 70,901,090 $ 63,852,369 $ Indirect & Overhead 647,702 551,057 646,387 Debt 34,688,132 40,214,927 41,650,422 Total Expenditures 104,085,981$ 111,667,074$ 106,149,179$ Funding Sources
General Funds 6,371,556$ 7,099,276$ 7,173,596$ Special Revenue Funds 5,958,707 5,815,027 5,864,686 Enterprise Funds 28,537,571 33,371,481 34,753,535 Internal Serivce Funds 63,468,147 65,381,290 58,357,361 Total Funding Sources 104,335,981$ 111,667,074$ 106,149,179$ 46 367 of 510

Fund
Information
47 368 of 510

Special Revenue
48 369 of 510

Police Grants and Safety Fund
Police Grants & Safety Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 572$ 896$ 961$ 378$
Revenues
Interes
t Earnings $ 196 $ - $ - $ -
Asset Seizure 144 300 - -
State Grants 819 805 656 420
Other 530 337 603 -
Total Revenues 1,689$ 1,442$ 1,259$ 420$ Expenditures
Personnel 979$ 1,
093$ 997$ 411$
Operating 386 281 768 1
Capital Outlay - 2 77 -
Total Expenditures 1,365$ 1,377$ 1,842$ 412$ Ending Fund Balance 896$ 961$ 378$ 387$
Values are shown in thousands.

Overview
The program seeks, applies for, and directs funds received from various grants and other sources to the different areas of police services, within the limitations established by the various granting/originating agencies. The program is currently made up of grant funds from the following sources:
-The Citizens' Options for Public Safety Program’s Supplemental Law Enforcement Services Fund (COPS/SLESF) grant partially covers the costs of two traffic officer positions. This grant was first funded in 1996. While the COPS program is intended to be on-going and permanent, there is no guarantee that continued funding will occur.
-The State Office of Traffic Safety (OTS) provides grants to both the San Mateo Police Department and regionally to San Mateo County. This grant will continue annually and is the source of funding to specialized traffic enforcement, DUI reduction, and pedestrian/bicycle safety enforcement. -US Department of Justice Edward Byrne Memorial Justice Assistance Grant (JAG) funds which are applied for annually and purposed towards various law- enforcement related objectives
-State Department of Justice Proposition 56 Tobacco Grant Program which funds a Police Officer position through Fiscal Year 2027/2028, dedicated to reducing and preventing the use of tobacco products in our community with a focus on local retailer enforcement, including enforcement of flavored tobacco bans. -Board of State and Community Corrections Byrne State Crisis Intervention Program (SCIP) funds purposed towards a Community Service Officer position which serves as a Threat of Gun Violence Expert focused on implementing Project Safeguard (Schools and Families Engaged for Gun Use Awarenessand Risk Detection) through Fiscal Year 2026/2027.
-Board of State and Community Corrections Organized Retail Theft Prevention Grant Program funds which San Mateo receives as a sub-recipient of a primary grant awarded to the City of Daly City. The funds are for a variety of strategies to combat retail theft such as conducting targeted security details, creating workspace/substations near retail, implementing new technologies and other programs. -State and Federal Asset Forfeiture funds. The source of these funds are assets which have been confiscated by the State or Federal Government, typically the proceeds or instruments of crime.

Ongoing Responsibilities
-Maintain accurate expenditure records on the disbursement of funds. -Provide the granting/originating agencies with requested reports. -Develop programs needed in the community that are in line with the funding guidelines. -Monitor the programs developed to evaluate their value to the community. -Ensure that all of the funds are properly managed.

Key Program Initiatives
Identify best ongoing resources for research and identification of new grant opportunities and provide added value to the community. 49 370 of 510

Solid Waste Fund
Solid Waste 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 14,420$ 19,046$ 18,593$ 16,019$ 14,253$ 13,238$ 12,153$ Revenues
Interest Earnings 819$ -$ 160$ 160$ 160$ 160$ 160$ Grants 361 26 56 56 56 56 56 Service Charges 3,301 3,261 2,672 2,707 3,194 3,231 3,270 Other Revenues 4,660 1,663 80 80 80 80 80 Total Revenues 9,140$ 4,951$ 2,968$ 3,003$ 3,490$ 3,527$ 3,566$ Expenditures
Personnel 2,136$ 1,932$ 2,687$ 2,766$ 2,849$ 2,933$ 3,021$ Operating 1,307 1,155 1,560 1,654 1,307 1,330 1,354 Indirect and Overhead Charges 305 313 330 339 339 339 339 Capital Outlay 0 - 965 10 10 10 10 Total Expenditures 3,747$ 3,400$ 5,542$ 4,769$ 4,505$ 4,612$ 4,724$
Transfer Out 767$ 2,004$ -$ -$ -$ -$ -$ Ending Fund Balance 19,046$ 18,593$ 16,019$ 14,253$ 13,238$ 12,153$ 10,995$ Values are shown in thousands.

The Solid Waste Fund accounts for garbage collection surcharge revenues, which are restricted by City ordinance to be used for street cleaning and waste management.

The street cleaning aspect of this fund consists of keeping over 200 curb miles of streets swept, as well as cleaning and maintaining City-owned parking lots. The waste management aspect of this fund involves the coordination and oversight of a range of programs and activities that provide the community with solid waste and recycling services.

Included in the service charges is $150,000 per year that the fund receives through the garbage collection provider for operating and maintenance expenses related to the trash load reduction requirements of the Municipal Regional Plan issued by the Regional Quality Control Board. Fund balance has accumulated in this fund as expenditures have been lower than expected over the past several years and due to Construction and Demolition (C&D) deposit forfeitures. Going forward, services for street cleaning and waste management will continue to be evaluated to ensure that the level of support being provided is sufficient. Service charges will continue to be evaluated and adjusted as necessary to ensure alignment with expected expenditures and appropriate reserve levels. 50 371 of 510

HOME Fund
HOME Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 498$ 522$ 601$ 618$ Revenues
Loan Paym
ents $ 11 $ 79 $ 15 $ 15 Grants 40 13 13 13 Total Revenues 51$ 92$ 28$ 28$ Expenditures
Pers
onnel 28$ 13$ -$ -$ Operating - - 10 10 Total Expenditures 28$ 13$ 10$ 10$ Ending Fund Balance 522$ 601$ 618$ 636$ Values are shown in thousands.

The HOME Investment Partnership (HOME) Program is a federal grant used to assist rental and homeownership housing opportunities for households up to 60-80% of the median income. The City received an annual HOME grant from 1994 to 2016. The fund now includes program income from loan repayments from loans funded with HOME monies in the past.

The program income from prior HOME loans will continue to be collected, and potential projects will be identified as the fundbalance reaches an appropriate level.

Accumulated resources fund HOME-eligible uses, such as new construction of housing, acquisition and rehabilitation of existing buildings, and down payment assistance.
51 372 of 510

Community Development Block Grant Fund
Community Development Block Grant Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 391$ 354$ 694$ 638$ Revenues
Inter
governmental Contributions $ 227 $ 766 $ 803 $ 732 Loan Payments 16 8 8 8 Total Revenues 243$ 774$ 811$ 740$ Expenditures
Pers
onnel 39$ 35$ -$ -$ Operating 223 286 397 391 Indirect & Overhead Charges 19 - 20 20 Total Expenditures 280$ 321$ 416$ 411$ Transfer Out -$ 113$ 450$ 450$ Ending Fund Balance 354$ 694$ 638$ 516$ Values are shown in thousands.

The Community Development Block Grant (CDBG) Program is a federal grant from the Department of Housing and Urban Development (HUD) that provides flexible funding for community development projects and programs to assist lower income neighborhoods and households up to 80% of the median income. San Mateo has participated in this program since 1977. The fund consists of draws against the grant letter of credit, as well as program income from loan repayments from loans funded with CDBG in the past. The letter of credit consists of prior year unexpended funds in addition to the annual grant. These fundsare held by HUD and drawn down on a reimbursement basis to the City.

CDBG funds will be used for Community Funding grants to local social service agencies who serve lower income residents, facility repairs for local service agencies, minor home repairs to lower income homeowners, pedestrian and bike improvements in North Shoreview and North Central neighborhoods, and program administration.
52 373 of 510

Advanced Planning
Advanced Planning 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 5,841$ 6,510$ 6,391$ 6,744$ 7,060$ 7,137$ 7,175$ Revenues
Interest Earnings $ 280 $ 130 $ 150 $ 150 $ 150 $ 150 $ 150 General
Plan Maintenance Fee 1,516 1,800 1,800 1,800 1,800 1,800 1,800 State Grants 93 300 500 500 300 300 300
Total Revenues 1,890$ 2,230$ 2,450$ 2,450$ 2,250$ 2,250$ 2,250$ Expenditures
Personnel 795$ 1,402$ 1,117$ 1,150$ 1,184$ 1,218$ 1,254$ Operating 289 807 835 835 835 835 835
Indirect and Overhead Charges 137 141 145 150 154 159 163 Total Expenditures 1,221$ 2,349$ 2,097$ 2,134$ 2,173$ 2,212$ 2,253$ Ending Fund Balance 6,510$ 6,391$ 6,744$ 7,060$ 7,137$ 7,175$ 7,173$ Values are shown in thousands.

The Advanced Planning Fund accounts for the General Plan maintenance fee collected through building permits and expenditures for activities related to preparing long- term pl
ans and policy documents for the physical and economic development of the City, including the General Plan update. These plans and policies are used for the evaluation of development projects and determining priorities for public improvements.

Prior
to 2021-2022, the Community Development Department increased the General Plan maintenance fee to account for the costs associated with several long-range planning efforts
the City needs to complete. Advanced Planning staff continues to monitor passage and implementation of new State legislation, the next iteration of the Sust
ainable Communities Strategy (Plan Bay Area) by t he Associati on of Bay Area Governments and Metropolitan Transportation Commission, completing near-term Zoning Code Amendments, preparation and adoption of the General Plan Update, creation of objective design standards for residential development, and implementation of general planning, zoning, and policy recommendations as directed by the City Council. In future cycles, the implementation of t he General Plan Update and revision of the City’s various specific plans and zoning code will be funded by the Advanced Planning Fund. 53 374 of 510

Construction Services
Construction Services 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 26,934$ 23,699$ 23,121$ 17,768$ 13,046$ 8,649$ 4,494$ Revenues
Interest Earnings $ 1,116 $ 450 $ 400 $ 350 $ 300 $ 250 $ 200 Plan Check Fees 3,275 4,052 3,400 3,625 3,749 3,879 4,015 Permit Fees 4,960 5,202 5,392 5,892 6,179 6,480 6,797 Other Fees 515 753 592 620 651 682 716 Total Revenues 9,866$ 10,456$ 9,784$ 10,487$ 10,878$ 11,291$ 11,727$ Expenditures
Personnel 9,206$ 7,226$ 11,283$ 11,395$ 11,507$ 11,621$ 11,737$ Operating 1,117 1,155 1,542 1,577 1,598 1,620 1,643 Indirect & Overhead Charges 1,471 1,733 1,762 1,668 1,579 1,595 1,610 Total Expenditures 11,794$ 10,115$ 14,586$ 14,639$ 14,685$ 14,836$ 14,990$ Transfer Out 1,306$ 920$ 550$ 570$ 590$ 610$ 630$ Ending Fund Balance 23,699$ 23,121$ 17,768$ 13,046$ 8,649$ 4,494$ 602$ Values are shown in thousands.

The Construction Services Fund accounts for building permit revenues and expenditures for activities related to the review of private development projects to achieve high quality and long-term economic growth in the City. Building Division staff members also ensure that new construction meets established standards for health and safety, accessibility, energy efficiency, and provide public education to enhance the safety of existing buildings and better awareness of building codes.

Over the last several years, fund balance has grown significantly. Revenue in this fund is for services to be provided over time, and therefore, the significant fund balance will be needed over time to provide services for existing projects in process. While revenues in the five-year plan are expected to remain stable in the near term, service demand is expected to remain high to fully process existing projects. This is reflected in the ending fund balance being drawn upon over the course of the five-year plan.

Beginning in 2019-20, lease payments through a transfer out have been made to the General Fund for space occupied by construction services staff in City Hall.

Additionally, a number of funding commitments were made to transfer out to the Capital Improvement Projects Fund to support the digital storage of property records and electronic review of plans submittals, the traffic model update, and facilities improvements. 54 375 of 510

Gas Tax Fund
Gas Tax 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 1,768$ 2,889$ 2,683$ 1,888$ 2,045$ 2,255$ 2,539$ Revenues
State Gas Tax $ 1,965 $ 2,036 $ 2,072 $ 2,113 $ 2,155 $ 2,198 $ 2,242 Gas Tax In Lieu of Prop 42 1,008 1,013 1,034 1,054 1,075 1,097 1,119 Interest Earnings 113 40 40 40 40 40 40
Total Revenues 3,086$ 3,089$ 3,145$ 3,207$ 3,270$ 3,335$ 3,401$ Transfer Out 1,966$ 3,295$ 3,941$ 3,051$ 3,061$ 3,051$ 3,051$ Ending Fund Balance 2,889$ 2,683$ 1,888$ 2,045$ 2,255$ 2,539$ 2,890$ Values are shown in thousands.

The Gas Tax Fund accounts for gasoline tax revenues that are utilized for street-related operating and capital costs. The fund makes an annual transfer to the General Fund to partially offset eligible operating costs related to the City's streets and roads maintenance programs. Additionally, it makes annual contributions to the Capital Improvement Projects Fund to fund various capital improvement projects.

California's gas tax is calculated on a per-gallon basis, not as a percentage of the fuel price. This means taxpayers pay a fixed amount in tax for every gallon purchased, regardless of fluctuations in fuel prices. As such, recent hikes in gas prices resulting from global conflict may only have minor impacts on the gas tax revenue, if any.

While fuel consumption has declined in recent years due to post-COVID hybrid work patterns, gas tax revenues have remained relatively stable thanks to scheduled rate increases tied to inflation. According to January 2026 estimates from the State Department of Finance (DOF), the City anticipates receiving $3.1 million in gas tax revenues in both FY 2026-27 and FY 2027-28.

The five-year plan maintains the annual transfer to the General Fund, and makes contributions to the Capital Improvement Projects Fund to fund street reconstruction and rehabilitation projects. As more information becomes available on the impacts to gasoline tax revenues, this plan will be updated accordingly. 55 376 of 510

City Housing
City Housing 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 1,198$ 1,424$ 1,563$ 1,545$ Revenues
Housing Fees $ - $ - $ 50 $ 50
Miscellaneous 227 200 210 210
Total Revenues 227$ 200$ 260$ 260$
Expenditures
Contribution to Other Agencies -$ 33$ 47$ 47$
Contribution to First Time Home Buyers - - 180 180
Operating - 28 52 47
Total Expenditures -$ 61$ 279$ 274$
Ending Fund Balance 1,424$ 1,563$ 1,545$ 1,531$ Values are shown in thousands.

The City Housing Fund captures a variety o f housing-related revenues, including loan repayments from the defunct federal Rental Rehabilitation Program,
a pro rata share of the original homebuyer loans at the Meadow Court housing complex, fees c ollected for housing loan subordination requests, and the fractional Below Market Rate (BMR) program in lieu fees.

This fund can be used to assist housing-related projects when the fund balance is sufficient and appropriate projects are identified. Funds are set aside to assist first-time homebuyers with purchasing below market-rate housing units. Additionally, funds will be used to pay for the City membership fee for The Housing Endowment and Regional Trust of San Mateo County (HEART), the countywide housing trus t fund, and for revisions
to the City's BMR documents.
56 377 of 510

Low and Moderate Income Housing Asset Fund
Low and Moderate Income Housing Asset 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 5,135$ 5,448$ 5,381$ 5,147$ Revenues
Interest Earnings $ 190 $ 80 $ 80 $ 80
Loan Payments 180 374 214 214
Total Revenues 370$ 454$ 294$ 294$
Expenditures
Personnel 51$ 297$ 249$ 257$
Operating 6 225 279 279
Total Expenditures 57$ 521$ 528$ 536$
Ending Fund Balance 5,448$ 5,381$ 5,147$ 4,905$ Values are shown in thousands.

The Low and Moderate Income Housing Asset Fund consists of loan payments, lease payments, sale of property, and any other revenue generated from loans or assets held by the City as Housing Successor to the former Redevelopment Agency. State law regulates the use of thes
e funds to support housing p rojects that assist households whose incom e ranges up to 80% of median income. The fund also consists of administrativ
e costs to monitor existing housing projects, manage the existing loan portfolio, support homeless programs, and plan for new projects. This fund supports the City's Emergency Rental Assistance Program, administered by Samaritan House, and a portion of the Homeless Outreach Team (HOT).
57 378 of 510

Parks and Recreation Revenue Fund
Parks and Recreation Revenue Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 19,442$ 18,708$ 1,330$ 535$ 491$ 721$ 900$ Revenues
Interest Earnings $ 802 $ 187 $ 200 $ 200 $ 200 $ 200 $ 200 P&R Tax and Fees 266 (21) -
1,500 2,600 3,000 2,500
Total Revenues 1,068$ 166$ 200$ 1,700$ 2,800$ 3,200$ 2,700$ Expenditures
Operating 18$ 18$ 19$ 19$ 20$ 21$ 21$ Total Expenditures 18$ 18$ 19$ 19$ 20$ 21$ 21$ Transfer Out 1,785$ 17,526$ 976$ 1,725$ 2,550$ 3,000$ 1,600$ Ending Fund Balance 18,708$ 1,330$ 535$ 491$ 721$ 900$ 1,979$ Values are shown in thousands.

The Parks and Recreation Revenue Fund accounts for parks and recreation tax, park impact fees, and park in-lieu fees. Revenue projections are based on residential building projects, and are thus dependent on development activity. Accumulated resources in this fund are utilized to fund parksand recreation related projects through a transfer to the Capital Improvement Projects Fund.

Major transfers planned for 2026-27 include contributions towards synthetic field replacement, golf bunkers, and irrigaton controller upgrades. Transfers planned beyond 2026-27 include repairs to the Japanese Garden and playground updates for Trinta Park, Washington Park, and Martin Luther King Jr. Park. If the estimated fees do not come to fruition, we will not be able to transfer as much as planned to the Capital Improvement Projects Fund. We will adjustour plan in the future years to align spending with funding capacity.
58 379 of 510

Traffic Impact Fee Fund
Traffic Impact Fee 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 56$ (1,754)$ (3,288)$ (1,288)$ (1,388)$ (1,088)$ 212$ Revenues
Traffic Impact Fees 10$ 1,690$ 2,000$ 100$ 1,000$ 2,000$ 300$ Total Revenues 10$ 1,690$ 2,000$ 100$ 1,000$ 2,000$ 300$ Transfer Out 1,819$ 3,224$ -$ 200$ 700$ 700$ 400$ Ending Fund Balance (1,754)$ (3,288)$ (1,288)$ (1,388)$ (1,088)$ 212$ 112$ Values are shown in thousands.

The Traffic Impact Fee Fund accounts for revenues that are collected to fund various capital projects to mitigate the traffic related cumulative impacts of new development.

Revenues from this fund have contributed to traffic calming projects, construction costs of new traffic signals, and infrastructure projects such as the 25th Ave. In the five- year Capital Improvement Plan, transfers are being made to fund the infrastructure projects such as the 25th Ave. Grade Separation Project and the Railroad Avenue Wall Enhancement.

Since the Traffic Impact Fees are closely related to the status of new development projects, this revenue source is difficult to project. If the funding projections do not come to fruition, the capital improvement projects programmed to be funded out of this revenue source will be reviewed and evaluated for proper funding and adjustments will have to be made in the out years of this five-year forecast. 59 380 of 510

Commercial Linkage Fee
Commercial Linkage Fee 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 3,405$ 3,552$ 3,795$ 4,379$ 8,462$ 8,045$ 8,628$ Revenues
Interest Earnings 152$ 260$ 100$ 100$ 100$ 100$ 100$ Commercial Linkage Fee - - 500 4,000 500 500 500
Total Revenues 152$ 260$ 600$ 4,100$ 600$ 600$ 600$ Transfer Out
Operating -$ 11$ 11$ 11$ 1,011$ 11$ 11$ Indirect and Overhead Charges 5 5 6 6 6 6 6
Total Expenditures 5$ 16$ 17$ 17$ 1,017$ 17$ 17$ Ending Fund Balance 3,552$ 3,795$ 4,379$ 8,462$ 8,045$ 8,628$ 9,210$ Values are shown in thousands.

The Commercial Linkage Fee is an assessment on new commercial developments to address the impacts of new job creation on housing availability
and affordability for workers. Developers pay a fee based on square footage of new commercial space depending on type of use: office, retail, or hotel. The funds are to be used for housing programs to assist workers w ho make up to 120% of the area median income. Examples of housing programs can
include acquisition, rehabilitation, or new construction of housing.

The
fund balance is being accumulated over the period of this forecast. Potential projects will be identified as the fund balance reaches an appropriate
level. Accumulated resources will be utilized to fund projects through a tr ansfer to the Capital Improvement Projects Fund, and this plan will be
updated accordingly as needed.
60 381 of 510

Road Maintenance and Rehabilitation Account
Road Maintenance and Rehabilitation
Account
2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 7,493$ 9,881$ 5,148$ 5,314$ 5,570$ 5,917$ 6,258$ Revenues
Road Maint.
and Rehabilitation 2,885$ 2,798$ 2,966$ 3,055$ 3,147$ 3,241$ 3,339$ Interest Earnings 402 200 200 200 200 200 200
Total Revenues 3,287$ 2,998$ 3,166$ 3,255$ 3,347$ 3,441$ 3,539$ Transfer Out 898$ 7,731$ 3,000$ 3,000$ 3,000$ 3,100$ 3,100$ Ending Fund Balance 9,881$ 5,148$ 5,314$ 5,570$ 5,917$ 6,258$ 6,697$ Values are shown in thousands.

The Road Maintenance and Rehabilitation Account (RMRA) Fund was created in 2020-21. It accounts for transportation taxes established by the Road Repair
and Accountability Act of 2017 (SB 1). Prior to 2020-21, RMRA revenues were deposited in the Gas Tax Fund, and then subsequently transferred to the Capital Improvement Projects Fund to fund eligible projects. Moving this revenue source into its own special revenue fund creates greater visibility
to available resources for projects and will allow for more efficient reporting on ho w these funds are being utilized.

Based on the State Department of Finance (DOF) estimates, staff anticipates that the RMRA revenues will b e approximately $2.97 million for FY 2026-27. Accumulated resources from the RMRA revenues will be utilized to fund street reconstruction and rehabilitatio n projects through a transfer to the Capital
Improvement Projects (CIP) Fund. I n the five-year plan, the annual transfers to CIP are estimated at an average of $3.04 million each year.
$
61 382 of 510

Permanent Local Housing Allocation Fund
Permanent Local Housing Allocation Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 10$ 24$ 25$ 48$
Revenues
Interest Earnings $ 14 $ - $ - $ -
State Grants 353 225 240 240
Total Revenues 367$ 225$ 240$ 240$
Expenditures
Personnel 1$ 9$ -$ -$
Operating 352 215 217 217
Total Expenditures 353$ 223$ 217$ 217$
Ending Fund Balance 24$ 25$ 48$ 71$
Values are shown in thousands.

The Permanent Local Housing Allocation (PLHA) is a State Grant that is provided to the City, starting in Fall 2020, that will continue on an annual basis based on actual State receipts of document recording fees. These funds are flexible as long as they are used for housing-related projects
and programs that assist in addressing the unmet housing needs of San Mateo.

The fund supports four programs to support housing security and availability in the City: an emergency shelter, a homesharing pr ogram, supportive services
at t he Montara affordable housing development, and a rapid rehousing program. 62 383 of 510

Landfill Bond
Landfill Bond 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 4,490$ 4,497$ 4,367$ 4,274$ Revenues
Interest Earnings 193$ 80$ 100$ 100$
Garbage Collection Surcharge - - - -
Total Revenues 193$ 80$ 100$ 100$
Expenditures
Personnel 45$ 47$ 47$ 49$
Operating 90 163 66 53
Total Expenditures 135$ 210$ 113$ 102$
Transfer Out 51$ -$ 80$ -$
Ending Fund Balance 4,497$ 4,367$ 4,274$ 4,272$ Values are shown in thousands.

The Landfill Fund was initially set up as a debt service fund to account for debt service payments for t he landfill revenue bonds. Since the landfill bonds have been paid off, starting in fiscal year 2024-25, the Landfill Fund has been reclassified to a special revenue fund.

The Landfill Fund will continue to maintain a fund balance that is sufficient to meet the City's landfill closure and post-closu re obligations. 63 384 of 510

Debt Service
64 385 of 510

Street & Flood Control Project Bond
Street & Flood Control Project Bond 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 30$ 27$ 187$ 161$
Revenues
Special Assessments $ - $ 170 $ 175 $ 180
Interes
t Earnings $ 1 $ - $ - $ -
Total Revenues 1$ 170$ 175$ 180$
Expenditures
Operating 65$ 67$ 69$ 71$
Debt Service 2,629 2,632 2,633 2,631
Total Expenditures 2,695$ 2,699$ 2,702$ 2,702$ Transfer In 2,690$ 2,690$ 2,500$ 2,500$ Ending Fund Balance 27$ 187$ 161$ 138$
Values are shown in thousands.

The Street and Flood Control Projects Bond Fund is a debt service fund that accounts for debt service payments on lease reven ue bonds issued in 2020 to finance the street and flood control improvement projects. As these improvements are part of the Measure S initiatives, revenues
from Measure S are transferred into this fund to administer the debt services. Additionally, a benefit assessment district was created in the Nort
h Shoreview neighborhood as it relates to the flood control improvements. Assessment levies are collected to pay p art of the annual debt. The remaining debt service is funded by the Measure S. 65 386 of 510

General Obligation Bonds
General Obligation Bonds 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 7,562$ 7,457$ 6,863$ 6,293$ Revenues
Interest Earnings $ 319 $ 150 $ 125 $ 100
Proper
ty Taxes 1,699 1,391 1,436 1,484
Total Revenues 2,019$ 1,541$ 1,561$ 1,584$ Expenditures
Operating $ 62 $ 64 $ 65 $ 67
Debt Service 2,062 2,072 2,065 2,078
Total Expenditures 2,124$ 2,135$ 2,131$ 2,145$ Ending Fund Balance 7,457$ 6,863$ 6,293$ 5,732$ Values are shown in thousands.

The General Obligation Bonds Fund accounts for voter-approved property tax revenues and debt service payments on the City's general obligation bonds that were utilized to finance the construction, acquisition, and improvement of a new main library and the improvement of the City's branch libraries.

Other debt of the City is housed directly in the applicable operating and capital funds, with payments for debt service listed as a line item in the financial
plans.

The City is bound by a provision in state law limiting the indebtedness for California cities to 15% of the assessed value of all real and personal property of the city. Based on the current fiscal year's total assessed value of $41 billion, San Mateo's legal debt limit was $6.2 billion, only at

0.16%
of its legal debt limit. This statutory limitations applies only to bonded indebtedness of the City payable from proceeds of taxes levied on a property. For San Mateo, this includes only the general obligation bonds. 66 387 of 510

2% Hotel Tax Fund
2% Hotel Tax 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 179$ 364$ 406$ 309$ 240$ 201$ 141$ Revenues
Interest Earnings 14$ 0$ -$ -$ -$ -$ -$
Transient Occupancy Tax 784 630 687 700 714 729 743
Total Revenues 797$ 630$ 687$ 700$ 714$ 729$ 743$ Expenditures
Operating 135$ 148$ 119$ 119$ 119$ 119$ 129$
Debt Service 828 790 865 900 935 970 1,010
Total Expenditures 962$ 938$ 984$ 1,019$ 1,054$ 1,089$ 1,139$ Transfer In 350$ 350$ 200$ 250$ 300$ 300$ 300$
Ending Fund Balance 364$ 406$ 309$ 240$ 201$ 141$ 45$ Values are shown in thousands.

The 2% Hotel Tax Fund accounts for the Measure C voter-approv ed 2% hotel tax revenue, the related transfers to the Capital Improvement Program Fund, and the debt service on the variable rate bonds that were utilized to partially fund the police administration facility.

Due to the closure of a major hotel in May 2024, we have seen a decline is TOT revenues. Consequently, ongoing support from the General Fund, of approximately
$300,000 annually,
will be required to maintain a positive fund balance. The average variable rate of interest was below 2%, but if interest rates rise, the General Fund support estimates may need to rise. 67 388 of 510

Enterprise
68 389 of 510

Storm Water Fund
Storm Enterprise 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance -$ 3,333$ 5,768$ 5,558$ 5,621$ 5,797$ 6,085$ Revenues
Charges for Services $ 3,860 $ 4,050 $ 4,071 $ 4,193 $ 4,319 $ 4,448 $ 4,582 Interest Earnings 152 120 120 120 125 125 125
Total Revenues 4,012$ 4,170$ 4,191$ 4,313$ 4,444$ 4,573$ 4,707$ Expenditures
Personnel 587$ 240$ 384$ 395$ 407$ 420$ 432$
Operating
92 345 497 185 188 192 195
Capital - 650 145 120 122 125 128
Total Expenditures 679$ 1,235$ 1,026$ 700$ 718$ 736$ 755$ Transfer Out -$ 500$ 3,375$ 3,550$ 3,550$ 3,550$ 3,550$ Ending Fund Balance 3,333$ 5,768$ 5,558$ 5,621$ 5,797$ 6,085$ 6,487$ Values are shown in thousands.

The City of San Mateo operates and maintains a stormwater system, which provides vital services to safeguard neighborhoods from flooding and protects local waterways from pollution. The system consists of complex infras tructure including surface drains, underground pipes and conduits, pump stations, creeks and channels, and the Marina Lagoon. The City's stormwater system requires improvements to address flood control capacity limitations and deficiencies related to aging infrastructure, enhanced operations and maintenance, and improvements to minimize pollu tants in stormwater runoff as required by state and federal mandates.

In January 2024, the Community Flood and Storm Protection Fee Ballot Measure was approved by property owners. This measure allowed the City Council to levy the Stormwater Fees starting in FY 2024-25, providing $3.9 million in the first fiscal year. The fees may be adjusted annually by t he Consumer Price Index (CPI) up to 3%, subject to annual approval by the City Council.

One of the first efforts resulting from the new fee is development of a new Storm Drain Master Plan, the prior version of which is over 20 years old. The new plan, which staff anticipates will be finalized at the start of Fiscal Year 2 026-27, estimates approximately $240 million in needed improve ments, including approximately $40 million in “Very High” priority projects. Staff plans to initiate design for a portion of these “Very High” priority projects in the upcoming fiscal year with $2.3 million from the Community Flood and Storm Protection Fee revenue. Additionally, $1.1 million from the fee is planned for addressing neighborhoo d flooding issues and implementing green stormwater infrastructure to capture, retain, and clean runoff in acco rdance with state and federal regulatory mandates. 2027-28
Projected
Budget
69 390 of 510

Sewer Fund
Sewer Fund (CASH BASIS) 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 184,575$ 301,950$ 332,426$ 339,562$ 334,910$ 331,423$ 329,846$ Revenues
Interest Earnings 13,100$ 5,003$ 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ Operating Revenues 86,110 89,042 92,168 94,852 97,553 100,369 103,287 Capital Contributions from Other 25,606 3,915 9,377 9,667 9,860 10,057 10,258 Total Revenues 124,817$ 97,959$ 106,545$ 109,519$ 112,413$ 115,426$ 118,545$ Expenses
Operating and Maintenance 28,369$ 28,761$ 40,537$ 40,119$ 40,929$ 42,001$ 43,106$ Debt Service 19,030 24,593 28,333 29,727 27,746 26,897 28,390 Capital Projects 39,448 29,639 39,925 44,325 47,225 48,105 48,825 Total Expenses 86,847$ 82,994$ 108,795$ 114,170$ 115,900$ 117,003$ 120,321$ Loan Proceeds 79,405$ 15,511$ 9,386$ -$ -$ -$ -$ Ending Fund Balance 301,950$ 332,426$ 339,562$ 334,910$ 331,423$ 329,846$ 328,070$ Values are shown in thousands.

The Sewer Fund consists of the sewer collection systems, the Wast ewater Treatment Plant (WWTP), and disposal facilities serving the residents and businesses of San Mateo, Foster City, and portions of the neighboring communities of Hillsborough, Belmont, the Crystal Springs County Sanita tion District, and certain unincorporated areas of the County. The sewer enterprise system currently serves approximately 30,000 customer accounts in the City and approximately 11,000 customer accounts in Foster City and the subregional customer communities utilizing the WWTP.

The fund's financial plan consists of two elements: (1) fiscal year (FY) 2026-27 operating budget and forecast of future operatio nal needs, and (2) estimated cash inflows and outflows for sewer capital improvem ent projects (CIP) during the forecast period. The capital expenses identified in this financial plan, as well as the corresponding bond/loan proceeds, are predominantly related to the execution of the Clean Water Program, which is discussed in detail in the Capital Improvement Program section of this document. The financial plan will be continually monitored and this plan will be updated accordingly.

Background information about the Sewer Service Charge:

In 2018, the City Council adopted a five-year sewer rate structur e for fiscal years 2018-19 through 2022-23 designed to provide sufficient revenues to fund ongoing operations and capital projections. The 50/50 volumetric/fixed fee structure was implemen ted. The new rate structure introduced a fixed monthly fee to better stabilized revenue and help address revenue reductions due to increased water conservation. A recent Sewer Rate Study found that the past rate increases have put the City's sewer fund in a good financial position. Additionally, the City has been successful in getting a large amount of the Cl ean Water Program financed with low interest rate loans. As a result, only inflationary level rate increases will be required for future years. In July 2023, the Ci ty Council approved an annual sewer rate increase of 3.0% for the next five years, starting FY 2023-24 through FY 2027-28. 70 391 of 510

Internal Services
71 392 of 510

Vehicle and Equipment Replacement
Vehicle and Equipment Replacement 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 18,126$ 15,793$ 15,760$ 6,768$ 6,305$ 5,439$ 4,746$ Revenues
Interest Earnings 467$ 320$ 315$ 135$ 126$ 109$ 95$ Interfund Replacement Collection 1,844 1,839 1,900 2,000 2,100 2,200 2,300 Other Revenues 87 - - - - - - Total Revenues 2,397$ 2,159$ 2,215$ 2,135$ 2,226$ 2,309$ 2,395$ Expenses
Vehicle Replacement -$ 840$ 4,963$ 339$ 1,326$ 1,348$ 1,363$ Computer Replacement 459 84 2,830 613 1,029 566 796 Radio Replacement - - - - - - - Major Equipment Replacement 54 101 3,774 1,956 1,047 498 148 Other Capital Outlay & Depreciation 1,348 5 - - - - - Total Expenses 1,861$ 1,030$ 11,567$ 2,908$ 3,402$ 2,412$ 2,307$ Transfer In 410$ 410$ 410$ 410$ 410$ 410$ 410$ Transfer Out 1,619$ 1,572$ 50$ 100$ 100$ 1,000$ 500$ Ending Fund Balance 17,453$ 15,760$ 6,768$ 6,305$ 5,439$ 4,746$ 4,744$ Reserve for Major Building
Component Replacements 1,661$ 909$ 1,269$ 1,579$ 1,889$ 1,299$ 1,209$ Remaining Fund Balance 15,793$ 14,851$ 5,499$ 4,726$ 3,550$ 3,447$ 3,535$ Values are shown in thousands.

San Mateo City CouncilJune 1, 2026

San Mateo City Council
June 1, 2026