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Agenda packet, regular meeting, first session

San Mateo City Council
September 8, 2026

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Agenda packet, regular meeting, first session
Meeting
September 8, 2026
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San Mateo City Council
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3
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Text extracted from the city's file for reading and search. Open the original on sanmateo.primegov.com. That file is the official record.

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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: 72-4674 File ID: 26-11506 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: September 8, 2026
SUBJECT:

Annual Sewer Basin Rehabilitation – Agreements
RECOMMENDATION:

Approve four on-call professional consultant services agreements with a total value of $8,000,000 with CSG Consultants, Inc., Schaaf & Wheeler - Consulting Civil Engineers, Carollo Engineers, Inc., and Freyer & Laureta, Inc. for various sewer pipe rehabilitation projects in amounts not to exceed $2,000,000 for each consultant and authorize the Public Works Director to execute the agreements, issue project-specific task orders, and execute amendments within the agreement amounts.

BACKGROUND:

Post-Clean Water Program (CWP) projects will include infrastructure upgrades 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. Design and other professional consultant services are necessary to complete the planned sewer rehabilitations.

In April 2026, a Request for Qualifications (RFQ) for sewer cleaning, video inspections, condition evaluation, and rehabilitation design services was issued. Eight consulting firms responded to the RFQ. Staff evaluated the eight proposals on the basis of proposal quality, key staff, project understanding, past performance, local experience, scope and approach, references and skill set and concluded that the following four consultants are best qualified to provide the scope of services for post-CWP projects: CSG Consultants, Inc., Schaaf & Wheeler - Consulting Civil Engineers (Schaaf & Wheeler), Carollo Engineers, Inc., and Freyer & Laureta, Inc. The four consultants retained may provide on-call services for collection system evaluation and rehabilitation needs.

Staff recommends award of agreements to CSG Consultants, Inc., Schaaf & Wheeler, Carollo Engineers, Inc., and Freyer & Laureta, Inc. each in an amount not-to-exceed $2,000,000, with a term of five years for each agreement. Scope of work for project-specific task orders will be determined on an as-needed basis and issued by the Public Works Director.

BUDGET IMPACT:

There are sufficient funds in the Annual Citywide Sanitary Sewer Rehabilitation (46s191) project and the Sanitary Sewer Closed-Circuit Television Inspection Program (46s193) project to fund these four agreements.

ENVIRONMENTAL DETERMINATION:

These agreements are categorically exempt from CEQA as an “existing facility,” because the scope of work 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.

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CITY OF SAN MATEO
(CEQA Guidelines Section 15301.)

STRATEGIC PLAN ALIGNMENT
This staff report supports the Infrastructure initiative.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Agreement - CSG Consultants
Att 2 – Proposed Agreement - Schaaf & Wheeler
Att 3 – Proposed Agreement - Carollo Engineers
Att 4 – Proposed Agreement - Freyer & Laureta

STAFF CONTACT
Zach Silverman, Assistant Engineer
[email protected]
(650) 522-7308
Laura Webb, Senior Engineer
[email protected]
(650) 522-7322
Thomas Williams, Engineering Manager
[email protected]
(650) 522-7307

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AGREEMENT WITH CSG CONSULTANTS, INC.

FOR PROFESSIONAL CONSULTANT SERVICES
FOR
2026 ON-CALL CONSULTING SERVICES FOR ANNUAL SANITARY SEWER REHABILITATION

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 CSG CONSULTANTS, INC. a corporation, (“CONSULTANT”), whose address is 550 Pilgrim Drive, Foster City, CA 94404:

RECITALS:

A. CITY desires certain professional services hereinafter described.

B. CITY desires to engage CONSULTANT to provide these professional 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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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

This Agreement shall be valid for a duration of five (5) years. The services to be performed under this Agreement shall commence upon execution of the Agreement and be completed on June 30, 2031.

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 in an amount of $2,000,000, 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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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

Indemnity for Design Professional Services. CONSULTANT 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 CONSULTANT’s negligence, recklessness or willful misconduct in the performance of its design professional services under this Agreement. To the maximum extent permitted by law and Civil Code section 2782.8, CONSULTANT agrees to defend CITY, its elected and appointed officials, employees, volunteers, and agents against any such claims.

Indemnity for Activities Other Than Design Professional Services. CONSULTANT 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 CONSULTANT’s performance of non-design professional services under this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONSULTANT agrees to defend City, its elected and appointed officials, employees, volunteers, 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.

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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.

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 – 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.

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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.

SECTION 20 - LITIGATION

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: Laura Webb
City of San Mateo
300 West 20th Avenue
San Mateo, CA 94403

To CONSULTANT: CSG Consultants, Inc.

Attn: Hatem Ahmed
550 Pilgrim Drive
Foster City, CA 94404

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

CITY OF SAN MATEO

CONSULTANT

Matt Fabry
Public Works Director

Date Cyrus Kianpour
Its Authorized Agent
President

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

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
Exhibit D: Project Schedule

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EXHIBIT A

SCOPE OF SERVICES

The Consultant will provide consulting services for sanitary sewer rehabilitation for all project elements listed in this Scope of Services. The project and fee negotiations will be executed in three phases for the sewer rehabilitation project as shown below and further defined in this Scope of Services:

Phase 1
Task 1 - General Services
Task 2 - Video Inspection & Cleaning Services
Task 3 – Evaluation of Video Inspection Data

Phase 2
Task 1 - General Services
Task 4 – Project Design and Construction Documents
Task 5 – Bid Support

Phase 3
Task 1 – General Services
Task 6 – Construction Phase Services

See the chart below for the approximate number of manholes and length of pipe located within Basins A, B, C, El Camino Real, and Basin D:

Basin Manholes Pipes (LF)
A 972 223,963
B 1,019 235,366
C 937 170,980
ECR 148 56,657
D 1,168 245,030
Typical tasks that are required of the Consultant under these categories are detailed in the following sections. Throughout the design of this project, the Consultant will submit deliverables for review and approval by the City and other governing agencies as required. A preliminary description of proposed deliverables has been provided in this Scope of Services and will be finalized during contract and fee negotiations.

The deliverables required by the Consultant will vary depending on the necessary improvements to the sewer lines defined for each basin. All drawings and maps shall be developed using AutoCAD, ArcGIS and PDFs capable of plotting at a legible scale, on both 11x17” and 22x34” sheets.

Additional deliverable information is provided in the various task descriptions below.

For the 60%, 90%, and 100% design submittals, the Consultant shall attend a review meeting with City staff where the submittals will be presented to the City and will demonstrate that previous City comments have been addressed in the submittal.

The City reserves the right to discontinue, alter, or postpone services at any time.

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Task 1 – General Services
Project management and coordination include tasks that will be performed by the Consultant throughout the project. Task 1 will cover all general services required for Phase 1, Phase 2, and Phase 3 for the sewer line rehabilitation project. These services include:
 General Project Management and Coordination
 Risk Management
 Workshops and Meetings
 Management of Subconsultants and Subcontractors
 Agency Coordination and City Meeting Support
Further information regarding expectations for these services will be issued as a separate program standard in the Design Standards and Guidelines, prior to the first phase negotiations.

Task 1.1 – Project Management
Task 1.1.1 – General Management
The Consultant will be responsible for detailed management of the project, including subconsultants and subcontractors, and will keep the City appraised of the status of the project.

The Consultant will provide the key management personnel as described in their proposal on this project. The Consultant will not reassign the key project personnel without prior approval of the City per the Standard Agreement for Professional Consultant Services.

Task 1.1.2 – Progress Report
The Consultant will prepare and submit monthly progress reports that include a narrative of the work completed by task, project action item log, upcoming work, project issues, budget and schedule status, percent complete, cost to complete, earned value versus actual spent analysis, potential scope or budget changes, and other important project information. The monthly progress report will be submitted with the project invoice as part of the monthly request for payment. The invoices will comply with Program standards. The invoices will document the man-hours and billing rates for staff for each task in the WBS, as well as overhead, profit and any direct costs. The current and previous billing period invoicing, as well as a summary of the budget spent, budget remaining, cost to complete, and all backup documentation for expenses will be included. The monthly progress report and project schedule will be submitted with the project invoice as part of the monthly request for payment.

Task 1.2 – Risk Management
The Consultant will participate in the development and maintenance of a set of project risks in coordination with the Project Manager and the Program’s risk management team. The Consultant shall review the risks and mitigation measures previously identified by the Program and determine if additional risks or mitigations are required. Consultant shall implement any risk mitigations assigned to them as part of the risk development process. If both the City and the Consultant determine that a meeting is required, a risk review meeting will be conducted within one month after Notice to Proceed and will be addressed as needed throughout the course of the project. This meeting will be about one hour in length and may be combined with other meetings between the City and the Consultant.

Task 1.3 – Workshops and Meetings
The Consultant will prepare and submit to the City an agenda and meeting minutes for each formal meeting or workshop and hold progress meetings. Assume monthly meetings for CCTV work, monthly for design work and

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monthly for services during construction.

Task 1.4 – Quality Control
The Consultant will develop a Quality Assurance/Quality Control (QA/QC) Plan for implementation of the Scope of Work. The Consultant’s QA/QC Plan will be reviewed and approved by the City Project Manager and will include or reference all the controls necessary for implementation. QA/QC Plans shall include detailed requirements for providing the required integrity for all field work, including conducting the explorations, sampling, and sample custody and transport. All QA/QC procedures for laboratory work shall be included. Each submittal, or partial submittal of testing results shall be accompanied by a written certification, signed by the Consultant’s Project Manager and the responsible individual from the applicable subconsultant, stating that all QA/QC procedures have been complied with for the information or submittal being delivered to the City.

Submittals that do not include the written certification of compliance or that contain gross deficiencies or errors requiring a significant amount of the City staff time for checking will be returned without review until the City is satisfied that a thorough Consultant’s review, compliance with standards, checking and correction for coherence, consistency, spelling, etc., has been performed.

Task 1.5 – Management of Subconsultants
If the Consultant requires the services of any subconsultants, then the Consultant will include a list of them in the proposal, explain why they are needed, and provide a general description of their effort.

The Consultant will manage the activities of subconsultants during performance of the project. All requirements of the contract shall also apply to subconsultants.

Task 1.6 – Agency Coordination
The Consultant will assist the City in coordinating the project with various local/county, state/regional, and federal agencies. This task includes attending meetings, as needed, with applicable agencies, providing meeting minutes, and providing project information and exhibits to the agencies. This task is established as an allowance task and shall only be used when specifically requested by the City in writing. Costs for this task shall be invoiced as a separate line item and shall include a copy of the authorization from the City.

Task 2 –Video Inspection and Cleaning Services
This task should be conducted independently, on an as-needed basis as determined by the City, for each sewer rehabilitation project awarded to the Consultant.

Task 2.1 Plans
For the sewer rehabilitation projects where the City has deemed video inspection and cleaning services are required, the Consultant will create Plans showing all sewer lines and manholes within project limits, as well as a Traffic Control Plan. The City will provide the Consultant with project limits, current GIS data, and sample Plans. The Consultant will provide drafts of the Plans until City reviewers are satisfied and the project has been deemed ready for the Consultant’s CCTV subcontractor to perform the work. The Consultant’s subcontractor should follow City Standard CCTV Guidelines. Refer to the City of San Mateo Sewer System Management Plan (SSMP), Appendix 4.2.

Task 2.2 Pipe and Manhole Inspections and Cleaning
The Consultant will manage their CCTV subconsultant while the investigation and cleaning operations occur. The Prime Consultant or CCTV subconsultant shall be NASSCO PACP and MACP certified in order to perform pipe and manhole inspections. Ideally the Prime Consultant is also NASSCO certified; however, it is sufficient if only the CCTV subconsultant performing the inspections is certified. Consultant shall provide

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inspection videos and reports to the City as they receive them from their CCTV subcontractor. Consultant will begin Task 3 operations concurrently with Task 2.2 for the same project.

Task 3 – Evaluation of Video Inspection Data
This task should be conducted independently for each sewer rehabilitation project awarded to the Consultant.

Task 3.1 Evaluation Technical Memorandum
The consultant will be responsible for reviewing and evaluating the video inspection data provided to them for sanitary sewer mains and manholes. The consultant will then prioritize repairs based on the available project budget, the urgency of the repairs, and the value of the repair to maintenance and operation of the sewer system with the City’s input.

The City will share a list and/or map of roads that are under pavement excavation moratorium, as well as those roads which are scheduled for paving work. The consultant will identify if any of the proposed sewer repairs overlap with these road segments.

The results of this evaluation shall be included in a technical memorandum provided to the City.

Task 3.2 GIS Deliverable
The consultant shall provide the City with a GIS file containing all recommended repairs upon completion of the Evaluation Technical Memorandum.

Task 4 – Project Design and Construction Documents
This task should be conducted independently for each sewer rehabilitation project awarded to the Consultant. Consultant shall design repairs or improvements resulting from the inspection evaluation.

Consultant shall provide drawings for each repair or improvement and compile them into one or more project packages as agreed with the City. The design work entails taking the video inspection evaluation (Task 3) and designing the changes that will be required to repair any broken pipes or manholes.

Task 4.1 – 60% Design Development
The design activities and design elements shall become more concrete once the projects are assigned and shall be at a 60% level of completion.

A statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked in full conformance with the Consultants QA/QC Plan will be required.

All design work shall be in conformance with the Clean Water Program design guidelines and standards which will be provided to the Consultant during the negotiation phase.

The 60% design deliverable shall include one print ready PDF on electronic media acceptable to the City of all deliverables.

Task 4.1.1 – Field Investigations
The Consultant shall conduct field investigations as required to verify if there are any potential impacts to/from surrounding features that need to be addressed in the design for each sewer rehab location. The City will provide ArcGIS information in relation to the specific locations that is identified for rehab to the Consultant for use on the project.

The field investigation shall note all obstructions that may be affected by the needed improvements. The

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Consultant shall conduct a thorough investigation at easement locations, which includes taking pictures of upstream and downstream manholes, and documenting any obstacles in the way. The Consultant will be responsible for obtaining all permits and access agreements to perform the survey, as well as providing any necessary traffic control.

This work shall be completed before commencing with Task 4.2.

If a Subconsultant is used for this work, the Consultant will identify the Subconsultant with the response to this RFP.

Task 4.1.2 – 60% Design Submittal
The design submittal at 60% shall include initial design drawings, calculations, databases, specifications, schedule and any other project documentation to support this submittal. Consultant shall provide plan and profile drawings for any segment where the repairs cross roadways, or additional locations as requested by the City. Point repairs (i.e. 6’ length repairs) in roadways will not be required to be designed with plan and profile drawings, unless specifically requested by the City.

Task 4.2 – 90% Design Development
This task shall be conducted independently for each sewer rehabilitation project awarded to the Consultant. All design work shall be in conformance with the Clean Water Program design guidelines and standards, which will be provided to the Consultant during the negotiation phase.

For the 90% Design Submittal, the major design elements shall be well-established and essentially complete.

All supplementary/auxiliary design elements shall be incorporated between the 60% and 90% Design Submittals for a complete design package. Drawings for all disciplines shall be substantially complete.

Specifications shall be substantially complete and include all sections and all divisions including the legal, procedural, and general “front end” sections.

This submittal will include all finished, checked and completed plans and specifications. No new drawings and/or specification sections by the Consultant will be expected after this stage. All City comments on the previous submittal will have been resolved, rejected, addressed and/or incorporated in this submittal. The project is essentially finished and submitted as complete. The only missing effort is the City final review and regulatory approval with comment incorporation.

Consultant’s checking will include a review of all deliverables within each discipline (i.e. drawings, detailed specifications, project support documentation, etc.) and an inter-discipline coordination cross-check to correct discrepancies among the project documents.

Discipline calculations, databases, construction cost estimates, schedule, and other project support documentation will be updated and submitted to the City to reflect the status of the Drawings and Detailed Specifications and will support the 90% design submittal workshops.

A construction cost estimate (AACE Class 2) with basis of estimate narrative and construction sequencing plan and schedule shall be included with the deliverables.

The 90% design deliverable shall include a statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked and that they are in full conformance with Consultant’s QA/QC Plan. Additionally, the City will require the Consultant to fill out and sign the City’s QC Certification form.

The 90% design deliverable shall include one print-ready PDF on electronic media acceptable to the City of all deliverables.

Task 4.3 – 100% Design and Bid Documents

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This task shall be conducted independently for each identified project(s) awarded to the Consultant. All design work shall be in conformance with the Clean Water Program design guidelines and standards, which will be provided to the Consultant during the negotiation phase.

Following receipt of all City and regulatory review comments on the 90% Design Submittals, the Consultant will prepare a Final (100%) Design and will submit the 100% design submittal as a final check set. The final check set shall include all bid documents. Prior to submittal, the Consultant will have performed an inter- disciplinary cross-check of the design changes made since the 90% design submittal and corrected the related discrepancies. The Consultant will not add any new drawings or make any changes to the plans or specifications that are not a result of comments received by the City, regulatory review, or a final in-house quality control check. Consultant and City shall conduct a workshop to verify that all City comments have been addressed and all permit conditions are accounted for. After the City’s back-check review is complete, Consultant shall revise the documents and submit Final Bid Documents.

The 100% back-check design deliverable shall include a statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked in full conformance with Consultant’s QA/QC Plan.

The 100% back-check design deliverable shall include 4 hard copies and one print-ready PDF on electronic media acceptable to the City of all deliverables.

The Final Bid Documents will include finished, checked and completed plans and specifications, and will incorporate all City comments from previous submittals. The Consultant will document in-house changes and submit them to the City along with the Final Bid Documents.

The Final Design submittals will also include all final databases, reports, construction schedules, cost estimates, engineering calculations and bid ready project plans and specifications.

All plans, detailed specifications and engineering calculations will be stamped and signed by a Registered Engineer in the State of California.

An updated construction cost estimate (AACE Class 1) and construction sequencing plan and schedule will be included with the deliverables.

The Final Bid Documents deliverable shall include one print-ready PDF on electronic media acceptable to the City of all deliverables.

Task 5 – Bid Period Assistance
This task shall be conducted independently for each identified project(s) awarded to the Consultant.

The Consultant shall provide assistance during the bid period, including the following:
 Participate in the pre-bid conference, if necessary.
 Prepare responses to bidder’s questions.
 Prepare addenda to Bid Documents, as needed.
 Participate in reviewing alternate equipment and material proposals from the contractor, if applicable.
 Participate in the evaluation of the submitted bids, furnish consultation and advise to City staff, and assist with all the related equipment, cost and other analyses as required to finalize the award decision.
 Prepare conformed drawings and specifications that incorporate all addenda. The Final Conformed Documents deliverable shall include one print ready PDF on electronic media acceptable to the City.

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Task 6 – Construction Phase Services
This task shall be conducted independently for each identified project(s) awarded to the Consultant. The Consultant shall provide services during construction, which may include the following:
 Attendance at pre-construction conference and construction progress meetings  General technical support
 Periodic field visits
 Submittal review
 Request for information responses and review
 Change order and contract document modifications preparation and review  Progress payment application review
 Construction closeout support
 Preparation of record drawings

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EXHIBIT B

PAYMENT RATES

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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, 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, 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 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, 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 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

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of Cancellation endorsement is not available, CONSULTANT shall ensure the requisite Notice of 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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EXHIBIT D

PROJECT SCHEDULE

Consultant shall prepare a schedule for City review and approval prior to issuance of each Task Order.

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AGREEMENT WITH SCHAAF & WHEELER, CONSULTING CIVIL ENGINEERS

FOR PROFESSIONAL CONSULTANT SERVICES
FOR
2026 ON-CALL CONSULTING SERVICES FOR ANNUAL SANITARY SEWER REHABILITATION

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 SCHAAF & WHEELER, CONSULTING CIVIL ENGINEERS, a corporation, (“CONSULTANT”), whose address is 4699 Old Ironsides Drive, Suite 350, Santa Clara, CA 95054:

RECITALS:

A. CITY desires certain professional services hereinafter described.

B. CITY desires to engage CONSULTANT to provide these professional 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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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

This Agreement shall be valid for a duration of five (5) years. The services to be performed under this Agreement shall commence upon execution of the Agreement and be completed as set forth in Exhibit D.

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 in an amount of $2,000,000, 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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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

Indemnity for Design Professional Services. CONSULTANT 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 CONSULTANT’s negligence, recklessness or willful misconduct in the performance of its design professional services under this Agreement. To the maximum extent permitted by law and Civil Code section 2782.8, CONSULTANT agrees to defend CITY, its elected and appointed officials, employees, volunteers, and agents against any such claims.

Indemnity for Activities Other Than Design Professional Services. CONSULTANT 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 CONSULTANT’s performance of non-design professional services under this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONSULTANT agrees to defend City, its elected and appointed officials, employees, volunteers, 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.

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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 consistent with the professional skill and care ordinarily provided by consultants practicing at the same time in the same or similar locale under the same or similar circumstances 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.

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 – 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.

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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.

SECTION 20 - LITIGATION

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: Laura Webb
City of San Mateo
300 W. 20th Avenue
San Mateo, CA, 94403

To CONSULTANT: Schaaf & Wheeler
Attn: Ben Shick
4699 Old Ironsides Drive, Suite 350
Santa Clara, CA 95054

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

CITY OF SAN MATEO

CONSULTANT

Matt Fabry
Public Works Director

Date Charles Anderson
Its Authorized Agent
President

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

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
Exhibit D: Project Schedule

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EXHIBIT A

SCOPE OF SERVICES

The Consultant will provide consulting services for sanitary sewer rehabilitation for all project elements listed in this Scope of Services. The project and fee negotiations will be executed in three phases for the sewer rehabilitation project as shown below and further defined in this Scope of Services:

Phase 1
Task 1 - General Services
Task 2 - Video Inspection & Cleaning Services
Task 3 – Evaluation of Video Inspection Data

Phase 2
Task 1 - General Services
Task 4 – Project Design and Construction Documents
Task 5 – Bid Support

Phase 3
Task 1 – General Services
Task 6 – Construction Phase Services

See the chart below for the approximate number of manholes and length of pipe located within Basins A, B, C, El Camino Real, and Basin D:

Basin Manholes Pipes (LF)
A 972 223,963
B 1,019 235,366
C 937 170,980
ECR 148 56,657
D 1,168 245,030
Typical tasks that are required of the Consultant under these categories are detailed in the following sections. Throughout the design of this project, the Consultant will submit deliverables for review and approval by the City and other governing agencies as required. A preliminary description of proposed deliverables has been provided in this Scope of Services and will be finalized during contract and fee negotiations.

The deliverables required by the Consultant will vary depending on the necessary improvements to the sewer lines defined for each basin. All drawings and maps shall be developed using AutoCAD, ArcGIS and PDFs capable of plotting at a legible scale, on both 11x17” and 22x34” sheets.

Additional deliverable information is provided in the various task descriptions below.

For the 60%, 90%, and 100% design submittals, the Consultant shall attend a review meeting with City staff where the submittals will be presented to the City and will demonstrate that previous City comments have been addressed in the submittal.

The City reserves the right to discontinue, alter, or postpone services at any time.

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Task 1 – General Services
Project management and coordination include tasks that will be performed by the Consultant throughout the project. Task 1 will cover all general services required for Phase 1, Phase 2, and Phase 3 for the sewer line rehabilitation project. These services include:
 General Project Management and Coordination
 Risk Management
 Workshops and Meetings
 Management of Subconsultants and Subcontractors
 Agency Coordination and City Meeting Support
Further information regarding expectations for these services will be issued as a separate program standard in the Design Standards and Guidelines, prior to the first phase negotiations.

Task 1.1 – Project Management
Task 1.1.1 – General Management
The Consultant will be responsible for detailed management of the project, including subconsultants and subcontractors, and will keep the City appraised of the status of the project.

The Consultant will provide the key management personnel as described in their proposal on this project. The Consultant will not reassign the key project personnel without prior approval of the City per the Standard Agreement for Professional Consultant Services.

Task 1.1.2 – Progress Report
The Consultant will prepare and submit monthly progress reports that include a narrative of the work completed by task, project action item log, upcoming work, project issues, budget and schedule status, percent complete, cost to complete, earned value versus actual spent analysis, potential scope or budget changes, and other important project information. The monthly progress report will be submitted with the project invoice as part of the monthly request for payment. The invoices will comply with Program standards. The invoices will document the man-hours and billing rates for staff for each task in the WBS, as well as overhead, profit and any direct costs. The current and previous billing period invoicing, as well as a summary of the budget spent, budget remaining, cost to complete, and all backup documentation for expenses will be included. The monthly progress report and project schedule will be submitted with the project invoice as part of the monthly request for payment.

Task 1.2 – Risk Management
The Consultant will participate in the development and maintenance of a set of project risks in coordination with the Project Manager and the Program’s risk management team. The Consultant shall review the risks and mitigation measures previously identified by the Program and determine if additional risks or mitigations are required. Consultant shall implement any risk mitigations assigned to them as part of the risk development process. If both the City and the Consultant determine that a meeting is required, a risk review meeting will be conducted within one month after Notice to Proceed and will be addressed as needed throughout the course of the project. This meeting will be about one hour in length and may be combined with other meetings between the City and the Consultant.

Task 1.3 – Workshops and Meetings
The Consultant will prepare and submit to the City an agenda and meeting minutes for each formal meeting or

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workshop and hold progress meetings. Assume monthly meetings for CCTV work, monthly for design work and monthly for services during construction.

Task 1.4 – Quality Control
The Consultant will develop a Quality Assurance/Quality Control (QA/QC) Plan for implementation of the Scope of Work. The Consultant’s QA/QC Plan will be reviewed and approved by the City Project Manager and will include or reference all the controls necessary for implementation. QA/QC Plans shall include detailed requirements for providing the required integrity for all field work, including conducting the explorations, sampling, and sample custody and transport. All QA/QC procedures for laboratory work shall be included. Each submittal, or partial submittal of testing results shall be accompanied by a written certification, signed by the Consultant’s Project Manager and the responsible individual from the applicable subconsultant, stating that all QA/QC procedures have been complied with for the information or submittal being delivered to the City.

Submittals that do not include the written certification of compliance or that contain gross deficiencies or errors requiring a significant amount of the City staff time for checking will be returned without review until the City is satisfied that a thorough Consultant’s review, compliance with standards, checking and correction for coherence, consistency, spelling, etc., has been performed.

Task 1.5 – Management of Subconsultants
If the Consultant requires the services of any subconsultants, then the Consultant will include a list of them in the proposal, explain why they are needed, and provide a general description of their effort.

The Consultant will manage the activities of subconsultants during performance of the project. All requirements of the contract shall also apply to subconsultants.

Task 1.6 – Agency Coordination
The Consultant will assist the City in coordinating the project with various local/county, state/regional, and federal agencies. This task includes attending meetings, as needed, with applicable agencies, providing meeting minutes, and providing project information and exhibits to the agencies. This task is established as an allowance task and shall only be used when specifically requested by the City in writing. Costs for this task shall be invoiced as a separate line item and shall include a copy of the authorization from the City.

Task 2 –Video Inspection and Cleaning Services
This task should be conducted independently, on an as-needed basis as determined by the City, for each sewer rehabilitation project awarded to the Consultant.

Task 2.1 Plans
For the sewer rehabilitation projects where the City has deemed video inspection and cleaning services are required, the Consultant will create Plans showing all sewer lines and manholes within project limits, as well as a Traffic Control Plan. The City will provide the Consultant with project limits, current GIS data, and sample Plans. The Consultant will provide drafts of the Plans until City reviewers are satisfied and the project has been deemed ready for the Consultant’s CCTV subcontractor to perform the work. The Consultant’s subcontractor should follow City Standard CCTV Guidelines. Refer to the City of San Mateo Sewer System Management Plan (SSMP), Appendix 4.2.

Task 2.2 Pipe and Manhole Inspections and Cleaning
The Consultant will manage their CCTV subconsultant while the investigation and cleaning operations occur. The Prime Consultant or CCTV subconsultant shall be NASSCO PACP and MACP certified in order to

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perform pipe and manhole inspections. Ideally the Prime Consultant is also NASSCO certified; however, it is sufficient if only the CCTV subconsultant performing the inspections is certified. Consultant shall provide inspection videos and reports to the City as they receive them from their CCTV subcontractor. Consultant will begin Task 3 operations concurrently with Task 2.2 for the same project.

Task 3 – Evaluation of Video Inspection Data
This task should be conducted independently for each sewer rehabilitation project awarded to the Consultant.

Task 3.1 Evaluation Technical Memorandum
The consultant will be responsible for reviewing and evaluating the video inspection data provided to them for sanitary sewer mains and manholes. The consultant will then prioritize repairs based on the available project budget, the urgency of the repairs, and the value of the repair to maintenance and operation of the sewer system with the City’s input.

The City will share a list and/or map of roads that are under pavement excavation moratorium, as well as those roads which are scheduled for paving work. The consultant will identify if any of the proposed sewer repairs overlap with these road segments.

The results of this evaluation shall be included in a technical memorandum provided to the City.

Task 3.2 GIS Deliverable
The consultant shall provide the City with a GIS file containing all recommended repairs upon completion of the Evaluation Technical Memorandum.

Task 4 – Project Design and Construction Documents
This task should be conducted independently for each sewer rehabilitation project awarded to the Consultant. Consultant shall design repairs or improvements resulting from the inspection evaluation.

Consultant shall provide drawings for each repair or improvement and compile them into one or more project packages as agreed with the City. The design work entails taking the video inspection evaluation (Task 3) and designing the changes that will be required to repair any broken pipes or manholes.

Task 4.1 – 60% Design Development
The design activities and design elements shall become more concrete once the projects are assigned and shall be at a 60% level of completion.

A statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked in full conformance with the Consultants QA/QC Plan will be required.

All design work shall be in conformance with the Clean Water Program design guidelines and standards which will be provided to the Consultant during the negotiation phase.

The 60% design deliverable shall include one print ready PDF on electronic media acceptable to the City of all deliverables.

Task 4.1.1 – Field Investigations
The Consultant shall conduct field investigations as required to verify if there are any potential impacts to/from surrounding features that need to be addressed in the design for each sewer rehab location. The City will provide ArcGIS information in relation to the specific locations that is identified for rehab to the

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Consultant for use on the project.

The field investigation shall note all obstructions that may be affected by the needed improvements. The Consultant shall conduct a thorough investigation at easement locations, which includes taking pictures of upstream and downstream manholes, and documenting any obstacles in the way. The Consultant will be responsible for obtaining all permits and access agreements to perform the survey, as well as providing any necessary traffic control.

This work shall be completed before commencing with Task 4.2.

If a Subconsultant is used for this work, the Consultant will identify the Subconsultant with the response to this RFP.

Task 4.1.2 – 60% Design Submittal
The design submittal at 60% shall include initial design drawings, calculations, databases, specifications, schedule and any other project documentation to support this submittal. Consultant shall provide plan and profile drawings for any segment where the repairs cross roadways, or additional locations as requested by the City. Point repairs (i.e. 6’ length repairs) in roadways will not be required to be designed with plan and profile drawings, unless specifically requested by the City.

Task 4.2 – 90% Design Development
This task shall be conducted independently for each sewer rehabilitation project awarded to the Consultant. All design work shall be in conformance with the Clean Water Program design guidelines and standards, which will be provided to the Consultant during the negotiation phase.

For the 90% Design Submittal, the major design elements shall be well-established and essentially complete.

All supplementary/auxiliary design elements shall be incorporated between the 60% and 90% Design Submittals for a complete design package. Drawings for all disciplines shall be substantially complete.

Specifications shall be substantially complete and include all sections and all divisions including the legal, procedural, and general “front end” sections.

This submittal will include all finished, checked and completed plans and specifications. No new drawings and/or specification sections by the Consultant will be expected after this stage. All City comments on the previous submittal will have been resolved, rejected, addressed and/or incorporated in this submittal. The project is essentially finished and submitted as complete. The only missing effort is the City final review and regulatory approval with comment incorporation.

Consultant’s checking will include a review of all deliverables within each discipline (i.e. drawings, detailed specifications, project support documentation, etc.) and an inter-discipline coordination cross-check to correct discrepancies among the project documents.

Discipline calculations, databases, construction cost estimates, schedule, and other project support documentation will be updated and submitted to the City to reflect the status of the Drawings and Detailed Specifications and will support the 90% design submittal workshops.

A construction cost estimate (AACE Class 2) with basis of estimate narrative and construction sequencing plan and schedule shall be included with the deliverables.

The 90% design deliverable shall include a statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked and that they are in full conformance with Consultant’s QA/QC Plan. Additionally, the City will require the Consultant to fill out and sign the City’s QC Certification form.

The 90% design deliverable shall include one print-ready PDF on electronic media acceptable to the City of

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all deliverables.

Task 4.3 – 100% Design and Bid Documents
This task shall be conducted independently for each identified project(s) awarded to the Consultant. All design work shall be in conformance with the Clean Water Program design guidelines and standards, which will be provided to the Consultant during the negotiation phase.

Following receipt of all City and regulatory review comments on the 90% Design Submittals, the Consultant will prepare a Final (100%) Design and will submit the 100% design submittal as a final check set. The final check set shall include all bid documents. Prior to submittal, the Consultant will have performed an inter- disciplinary cross-check of the design changes made since the 90% design submittal and corrected the related discrepancies. The Consultant will not add any new drawings or make any changes to the plans or specifications that are not a result of comments received by the City, regulatory review, or a final in-house quality control check. Consultant and City shall conduct a workshop to verify that all City comments have been addressed and all permit conditions are accounted for. After the City’s back-check review is complete, Consultant shall revise the documents and submit Final Bid Documents.

The 100% back-check design deliverable shall include a statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked in full conformance with Consultant’s QA/QC Plan.

The 100% back-check design deliverable shall include 4 hard copies and one print-ready PDF on electronic media acceptable to the City of all deliverables.

The Final Bid Documents will include finished, checked and completed plans and specifications, and will incorporate all City comments from previous submittals. The Consultant will document in-house changes and submit them to the City along with the Final Bid Documents.

The Final Design submittals will also include all final databases, reports, construction schedules, cost estimates, engineering calculations and bid ready project plans and specifications.

All plans, detailed specifications and engineering calculations will be stamped and signed by a Registered Engineer in the State of California.

An updated construction cost estimate (AACE Class 1) and construction sequencing plan and schedule will be included with the deliverables.

The Final Bid Documents deliverable shall include one print-ready PDF on electronic media acceptable to the City of all deliverables.

Task 5 – Bid Period Assistance
This task shall be conducted independently for each identified project(s) awarded to the Consultant.

The Consultant shall provide assistance during the bid period, including the following:
 Participate in the pre-bid conference, if necessary.
 Prepare responses to bidder’s questions.
 Prepare addenda to Bid Documents, as needed.
 Participate in reviewing alternate equipment and material proposals from the contractor, if applicable.
 Participate in the evaluation of the submitted bids, furnish consultation and advise to City staff, and assist with all the related equipment, cost and other analyses as required to finalize the award decision.

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 Prepare conformed drawings and specifications that incorporate all addenda. The Final Conformed Documents deliverable shall include one print ready PDF on electronic media acceptable to the City.

Task 6 – Construction Phase Services
This task shall be conducted independently for each identified project(s) awarded to the Consultant. The Consultant shall provide services during construction, which may include the following:
 Attendance at pre-construction conference and construction progress meetings  General technical support
 Periodic field visits
 Submittal review
 Request for information responses and review
 Change order and contract document modifications preparation and review  Progress payment application review
 Construction closeout support
 Preparation of record drawings

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EXHIBIT B

PAYMENT RATES

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RATE AND COST SCHEDULE

As of July 2026
On-Call Consulting Services for Annual Sanitary Sewer
Rehabilitation
Rate Fee Basis

1. Hourly charge basis will consist of the following:

 Direct Wages: actual hourly salary for each individual  Fringe Benefits: 47.0% of direct wages (within regional standards)  Overhead: 179.4% of direct wages (within regional standards)  Profit: 10% (12% maximum applies to all Clean Water Program designcontracts)

2. Hourly billing rates are effective from July 1, 2026 through June 30, 2027. Hourly and unit rates may be renegotiated by the Consultant and the City on an annual basis. Requests to revise the hourly and unit rates must be made in writing, thirty (30) calendar days prior to the requested changes taking effect. Maximum increases shall not exceed an average of 3% per year.

Expenses

1. Technology Charge per direct labor hour = Hourly billing rates include all technology charges.

2. Bay Area Staff
 Personal use vehicles for Project Business and Visits to Sites - Vehicle Mileage (per mile) at Current Federal Travel Regulation (FTR).

3. Non-Bay Area Staff
 Travel meals and hotel at Federal GSA per diem rate/day as published on the USGSAwebsite.  Rental car, airline tickets, and other miscellaneous travel costs at actual cost. Receipts for all costs over $25 shall be maintained and submitted with invoices.

4. Subconsultant charges at cost plus 5% markup.

5. Outside printing services at cost, with prior approval.

6. Other direct project related costs at cost, with prior approval.

Other

1. Budget changes, rate increases, and any allocation of contingency dollars shall be approved by City Program Manager in advance of incurring any cost.

Schaaf & Wheeler, Consulting Civil Engineers

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RATE SCHEDULE

SCHAAF & WHEELER CONSULTING CIVIL ENGINEERS
July 2026 through July 2027

2026 ON-CALL SERVICES FOR ANNUAL SEWER BASIN REHABILITATION

TEAM MEMBER

Raw Labor
Cost1
Raw Labor
Cost with
1%
Escalation2
Fringe
Benefits3: %
of direct
wages

Overhead4: %
of direct
wages

Subtotal

Profit: %

Hourly Billing
Rate
Principal Project Manager $ 88.00 47.0% 179.4% $ 287.23 10% $ 315.96 Senior Project Manager $ 81.00 47.0% 179.4% $ 264.38 10% $ 290.82 Senior Engineer $ 73.00 47.0% 179.4% $ 238.27 10% $ 262.10 Associate Engineer $ 58.00 47.0% 179.4% $ 189.31 10% $ 208.24 Assistant Engineer $ 47.00 47.0% 179.4% $ 153.41 10% $ 168.75 Junior Engineer $ 40.00 47.0% 179.4% $ 130.56 10% $ 143.62 Designer $ 53.00 47.0% 179.4% $ 172.99 10% $ 190.29
GIS Analyst $ 42.00 47.0% 179.4% $ 137.09 10% $ 150.80 Technician $ 35.00 47.0% 179.4% $ 114.24 10% $ 125.66

1. Current average raw labor rates by Classification (July 2026).

2. If a contract starts within one (1) quarter from when the Consultant would normally increase their employee rates, an increase up to 1% is allowed for all staff working in the first year, to begin at the starting date of the contract, and will be frozen until the anniversary of the contract. This will cover anticipated first year salary increases. Thereafter, an average maximum 3% increase for all staff working on the project from year 1 will apply.

3. Fringe benefits include vacation, holiday, sick leave, payroll taxes, benefit insurance, PST contribution, and workers compensation.

4. Overhead expenses include rent and maintenance, office expenses, supplies, automobiles, travel, taxes & licenses, legal & accounting, professional dues & training, corporate insurance, depreciation, and general administration.

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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, 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, 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 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, 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 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

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of Cancellation endorsement is not available, CONSULTANT shall ensure the requisite Notice of 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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EXHIBIT D

PROJECT SCHEDULE

Consultant shall prepare a schedule for City review and approval prior to issuance of Task Order.

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AGREEMENT WITH CAROLLO ENGINEERS, INC.

FOR PROFESSIONAL CONSULTANT SERVICES
FOR
2026 ON-CALL CONSULTING SERVICES FOR ANNUAL SANITARY SEWER REHABILITATION

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 CAROLLO ENGINEERS, INC., a corporation, (“CONSULTANT”), whose address is 2795 Mitchell Drive, Walnut Creek, CA, 94598:

RECITALS:

A. CITY desires certain professional services hereinafter described.

B. CITY desires to engage CONSULTANT to provide these professional 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 performing its services consistent with the professional skill and care ordinarily provided by professionals practicing in the same or similar locality under the same or similar circumstances. 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.

In providing opinions of cost, financial analyses, economic feasibility projections, schedules, and quantity and/or quality estimates for potential projects, CONSULTANT has no control over cost

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or price of labor and material; unknown or latent conditions of existing equipment or structures that may affect operation and maintenance costs; competitive bidding procedures and market conditions; time or quality of performance of third parties; quality, type, management, or direction of operating personnel; the incoming water quality and/or quantity; the way CITY’s plant(s) and/ or associated processes are operated and/or maintained; and other economic and operational factors that may materially affect the ultimate project elements, including, but not limited to, cost or schedule. Therefore, CONSULTANT makes no warranty that CITY’s actual project costs, financial aspects, economic feasibility, schedules, and/ or quantities or quality realized will not vary from CONSULTANT’s opinions, analyses, projections, or estimates.

CONSULTANT may rely upon all such information provided by the CITY in the performance of the services required under this Agreement.

SECTION 3 - DUTIES OF CITY

CITY shall provide pertinent information regarding its requirements for the project.

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.

The CONSULTANT is not responsible for damage or delay in performance caused by events beyond the reasonable control of the CONSULTANT. In the event the CONSULTANT’s services are suspended, delayed or interrupted for the convenience of the CITY or delays occur beyond the reasonable control of the CONSULTANT, an equitable adjustment in the CONSULTANT’s time of performance and cost of the CONSULTANT’s personnel and subcontractors may be made.

SECTION 4 - TERM

This Agreement shall be valid for a duration of five (5) years. The services to be performed under this Agreement shall commence upon execution of the Agreement and be completed as set forth in Exhibit D.

CITY shall provide information that it holds regarding the subject of the services and CONSULTANT shall be entitled to use and rely upon all such information in the performance of the services required under
this Agreement.

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 in an amount of $2,000,000, pursuant to rates stated in Exhibit B to this Agreement, attached and incorporated by reference.

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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.

Any reuse of completed documents or use of partially completed documents without written verification or concurrence by CONSULTANT for the specific purpose intended will be at CITY’s sole risk and without liability or legal exposure to CONSULTANT.

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.

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.

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SECTION 11 - INDEMNITY

Indemnity for Design Professional Services. CONSULTANT 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 CONSULTANT’s negligence, recklessness or willful misconduct in the performance of its design professional services under this Agreement. To the maximum extent permitted by law and Civil Code section 2782.8, CONSULTANT agrees to defend CITY, its elected and appointed officials, employees, volunteers, and agents against any such claims.

Indemnity for Activities Other Than Design Professional Services. CONSULTANT 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 CONSULTANT’s performance of non-design professional services under this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONSULTANT agrees to defend City, its elected and appointed officials, employees, volunteers, 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.

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

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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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SECTION 20 - LITIGATION

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: Laura Webb
City of San Mateo
300 West 20th Avenue
San Mateo, CA 94403

To CONSULTANT: Carollo Engineers, Inc.

Attn: Kyle Gourley
2795 Mitchell Drive
Walnut Creek, CA 94598

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.

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SECTION 24 – THIRD PARTIES

The services to be performed by CONSULTANT are intended solely for the benefit of the CITY.

No person or entity not a signatory to this Agreement shall be entitled to rely on the CONSULTANT's performance of its services hereunder, and no right to assert a claim against the CONSULTANT by assignment of indemnity rights or otherwise shall accrue to a third party as a result of this Agreement or the performance of the CONSULTANT's services hereunder.

SECTION 25 - 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 and CONSULTANT have executed this Agreement the day and year first above written.

CITY OF SAN MATEO

CONSULTANT

Matt Fabry
Public Works Director

Date Katy Solem
Its Authorized Agent
Vice President

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

Date

APPROVED AS TO FORM

ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)

Linh P. Nguyen
Assistant City Attorney
Date Michelle Trinh
Wastewater Design Manager

Date

Attachments:

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

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EXHIBIT A

SCOPE OF SERVICES

The Consultant will provide consulting services for sanitary sewer rehabilitation for all project elements listed in this Scope of Services. The project and fee negotiations will be executed in three phases for the sewer rehabilitation project as shown below and further defined in this Scope of Services:

Phase 1
Task 1 - General Services
Task 2 - Video Inspection & Cleaning Services
Task 3 – Evaluation of Video Inspection Data

Phase 2
Task 1 - General Services
Task 4 – Project Design and Construction Documents
Task 5 – Bid Support

Phase 3
Task 1 – General Services
Task 6 – Construction Phase Services

See the chart below for the approximate number of manholes and length of pipe located within Basins A, B, C, El Camino Real, and Basin D:

Basin Manholes Pipes (LF)
A 972 223,963
B 1,019 235,366
C 937 170,980
ECR 148 56,657
D 1,168 245,030
Typical tasks that are required of the Consultant under these categories are detailed in the following sections. Throughout the design of this project, the Consultant will submit deliverables for review and approval by the City and other governing agencies as required. A preliminary description of proposed deliverables has been provided in this Scope of Services and will be finalized during contract and fee negotiations.

The deliverables required by the Consultant will vary depending on the necessary improvements to the sewer lines defined for each basin. All drawings and maps shall be developed using AutoCAD, ArcGIS and PDFs capable of plotting at a legible scale, on both 11x17” and 22x34” sheets.

Additional deliverable information is provided in the various task descriptions below.

For the 60%, 90%, and 100% design submittals, the Consultant shall attend a review meeting with City staff where the submittals will be presented to the City and will demonstrate that previous City comments have been addressed in the submittal.

The City reserves the right to discontinue, alter, or postpone services at any time.

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Task 1 – General Services
Project management and coordination include tasks that will be performed by the Consultant throughout the project. Task 1 will cover all general services required for Phase 1, Phase 2, and Phase 3 for the sewer line rehabilitation project. These services include:
 General Project Management and Coordination
 Risk Management
 Workshops and Meetings
 Management of Subconsultants and Subcontractors
 Agency Coordination and City Meeting Support
Further information regarding expectations for these services will be issued as a separate program standard in the Design Standards and Guidelines, prior to the first phase negotiations.

Task 1.1 – Project Management
Task 1.1.1 – General Management
The Consultant will be responsible for detailed management of the project, including subconsultants and subcontractors, and will keep the City appraised of the status of the project.

The Consultant will provide the key management personnel as described in their proposal on this project. The Consultant will not reassign the key project personnel without prior approval of the City per the Standard Agreement for Professional Consultant Services.

Task 1.1.2 – Progress Report
The Consultant will prepare and submit monthly progress reports that include a narrative of the work completed by task, project action item log, upcoming work, project issues, budget and schedule status, percent complete, cost to complete, earned value versus actual spent analysis, potential scope or budget changes, and other important project information. The monthly progress report will be submitted with the project invoice as part of the monthly request for payment. The invoices will comply with Program standards. The invoices will document the man-hours and billing rates for staff for each task in the WBS, as well as overhead, profit and any direct costs. The current and previous billing period invoicing, as well as a summary of the budget spent, budget remaining, cost to complete, and all backup documentation for expenses will be included. The monthly progress report and project schedule will be submitted with the project invoice as part of the monthly request for payment.

Task 1.2 – Risk Management
The Consultant will participate in the development and maintenance of a set of project risks in coordination with the Project Manager and the Program’s risk management team. The Consultant shall review the risks and mitigation measures previously identified by the Program and determine if additional risks or mitigations are required. Consultant shall implement any risk mitigations assigned to them as part of the risk development process. If both the City and the Consultant determine that a meeting is required, a risk review meeting will be conducted within one month after Notice to Proceed and will be addressed as needed throughout the course of the project. This meeting will be about one hour in length and may be combined with other meetings between the City and the Consultant.

Task 1.3 – Workshops and Meetings
The Consultant will prepare and submit to the City an agenda and meeting minutes for each formal meeting or workshop and hold progress meetings. Assume monthly meetings for CCTV work, monthly for design work and

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monthly for services during construction.

Task 1.4 – Quality Control
The Consultant will develop a Quality Assurance/Quality Control (QA/QC) Plan for implementation of the Scope of Work. The Consultant’s QA/QC Plan will be reviewed and approved by the City Project Manager and will include or reference all the controls necessary for implementation. QA/QC Plans shall include detailed requirements for providing the required integrity for all field work, including conducting the explorations, sampling, and sample custody and transport. All QA/QC procedures for laboratory work shall be included. Each submittal, or partial submittal of testing results shall be accompanied by a written certification, signed by the Consultant’s Project Manager and the responsible individual from the applicable subconsultant, stating that all QA/QC procedures have been complied with for the information or submittal being delivered to the City.

Submittals that do not include the written certification of compliance or that contain gross deficiencies or errors requiring a significant amount of the City staff time for checking will be returned without review until the City is satisfied that a thorough Consultant’s review, compliance with standards, checking and correction for coherence, consistency, spelling, etc., has been performed.

Task 1.5 – Management of Subconsultants
If the Consultant requires the services of any subconsultants, then the Consultant will include a list of them in the proposal, explain why they are needed, and provide a general description of their effort.

The Consultant will manage the activities of subconsultants during performance of the project. All requirements of the contract shall also apply to subconsultants.

Task 1.6 – Agency Coordination
The Consultant will assist the City in coordinating the project with various local/county, state/regional, and federal agencies. This task includes attending meetings, as needed, with applicable agencies, providing meeting minutes, and providing project information and exhibits to the agencies. This task is established as an allowance task and shall only be used when specifically requested by the City in writing. Costs for this task shall be invoiced as a separate line item and shall include a copy of the authorization from the City.

Task 2 –Video Inspection and Cleaning Services
This task should be conducted independently, on an as-needed basis as determined by the City, for each sewer rehabilitation project awarded to the Consultant.

Task 2.1 Plans
For the sewer rehabilitation projects where the City has deemed video inspection and cleaning services are required, the Consultant will create Plans showing all sewer lines and manholes within project limits, as well as a Traffic Control Plan. The City will provide the Consultant with project limits, current GIS data, and sample Plans. The Consultant will provide drafts of the Plans until City reviewers are satisfied and the project has been deemed ready for the Consultant’s CCTV subcontractor to perform the work. The Consultant’s subcontractor should follow City Standard CCTV Guidelines. Refer to the City of San Mateo Sewer System Management Plan (SSMP), Appendix 4.2.

Task 2.2 Pipe and Manhole Inspections and Cleaning
The Consultant will manage their CCTV subconsultant while the investigation and cleaning operations occur. The Prime Consultant or CCTV subconsultant shall be NASSCO PACP and MACP certified in order to perform pipe and manhole inspections. Ideally the Prime Consultant is also NASSCO certified; however, it is sufficient if only the CCTV subconsultant performing the inspections is certified. Consultant shall provide

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inspection videos and reports to the City as they receive them from their CCTV subcontractor. Consultant will begin Task 3 operations concurrently with Task 2.2 for the same project.

Task 3 – Evaluation of Video Inspection Data
This task should be conducted independently for each sewer rehabilitation project awarded to the Consultant.

Task 3.1 Evaluation Technical Memorandum
The consultant will be responsible for reviewing and evaluating the video inspection data provided to them for sanitary sewer mains and manholes. The consultant will then prioritize repairs based on the available project budget, the urgency of the repairs, and the value of the repair to maintenance and operation of the sewer system with the City’s input.

The City will share a list and/or map of roads that are under pavement excavation moratorium, as well as those roads which are scheduled for paving work. The consultant will identify if any of the proposed sewer repairs overlap with these road segments.

The results of this evaluation shall be included in a technical memorandum provided to the City.

Task 3.2 GIS Deliverable
The consultant shall provide the City with a GIS file containing all recommended repairs upon completion of the Evaluation Technical Memorandum.

Task 4 – Project Design and Construction Documents
This task should be conducted independently for each sewer rehabilitation project awarded to the Consultant. Consultant shall design repairs or improvements resulting from the inspection evaluation.

Consultant shall provide drawings for each repair or improvement and compile them into one or more project packages as agreed with the City. The design work entails taking the video inspection evaluation (Task 3) and designing the changes that will be required to repair any broken pipes or manholes.

Task 4.1 – 60% Design Development
The design activities and design elements shall become more concrete once the projects are assigned and shall be at a 60% level of completion.

A statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked in full conformance with the Consultants QA/QC Plan will be required.

All design work shall be in conformance with the Clean Water Program design guidelines and standards which will be provided to the Consultant during the negotiation phase.

The 60% design deliverable shall include one print ready PDF on electronic media acceptable to the City of all deliverables.

Task 4.1.1 – Field Investigations
The Consultant shall conduct field investigations as required to verify if there are any potential impacts to/from surrounding features that need to be addressed in the design for each sewer rehab location. The City will provide ArcGIS information in relation to the specific locations that is identified for rehab to the Consultant for use on the project.

The field investigation shall note all obstructions that may be affected by the needed improvements. The

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Consultant shall conduct a thorough investigation at easement locations, which includes taking pictures of upstream and downstream manholes, and documenting any obstacles in the way. The Consultant will be responsible for obtaining all permits and access agreements to perform the survey, as well as providing any necessary traffic control.

This work shall be completed before commencing with Task 4.2.

If a Subconsultant is used for this work, the Consultant will identify the Subconsultant with the response to this RFP.

Task 4.1.2 – 60% Design Submittal
The design submittal at 60% shall include initial design drawings, calculations, databases, specifications, schedule and any other project documentation to support this submittal. Consultant shall provide plan and profile drawings for any segment where the repairs cross roadways, or additional locations as requested by the City. Point repairs (i.e. 6’ length repairs) in roadways will not be required to be designed with plan and profile drawings, unless specifically requested by the City.

Task 4.2 – 90% Design Development
This task shall be conducted independently for each sewer rehabilitation project awarded to the Consultant. All design work shall be in conformance with the Clean Water Program design guidelines and standards, which will be provided to the Consultant during the negotiation phase.

For the 90% Design Submittal, the major design elements shall be well-established and essentially complete.

All supplementary/auxiliary design elements shall be incorporated between the 60% and 90% Design Submittals for a complete design package. Drawings for all disciplines shall be substantially complete.

Specifications shall be substantially complete and include all sections and all divisions including the legal, procedural, and general “front end” sections.

This submittal will include all finished, checked and completed plans and specifications. No new drawings and/or specification sections by the Consultant will be expected after this stage. All City comments on the previous submittal will have been resolved, rejected, addressed and/or incorporated in this submittal. The project is essentially finished and submitted as complete. The only missing effort is the City final review and regulatory approval with comment incorporation.

Consultant’s checking will include a review of all deliverables within each discipline (i.e. drawings, detailed specifications, project support documentation, etc.) and an inter-discipline coordination cross-check to correct discrepancies among the project documents.

Discipline calculations, databases, construction cost estimates, schedule, and other project support documentation will be updated and submitted to the City to reflect the status of the Drawings and Detailed Specifications and will support the 90% design submittal workshops.

A construction cost estimate (AACE Class 2) with basis of estimate narrative and construction sequencing plan and schedule shall be included with the deliverables.

The 90% design deliverable shall include a statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked and that they are in full conformance with Consultant’s QA/QC Plan. Additionally, the City will require the Consultant to fill out and sign the City’s QC Certification form.

The 90% design deliverable shall include one print-ready PDF on electronic media acceptable to the City of all deliverables.

Task 4.3 – 100% Design and Bid Documents

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This task shall be conducted independently for each identified project(s) awarded to the Consultant. All design work shall be in conformance with the Clean Water Program design guidelines and standards, which will be provided to the Consultant during the negotiation phase.

Following receipt of all City and regulatory review comments on the 90% Design Submittals, the Consultant will prepare a Final (100%) Design and will submit the 100% design submittal as a final check set. The final check set shall include all bid documents. Prior to submittal, the Consultant will have performed an inter- disciplinary cross-check of the design changes made since the 90% design submittal and corrected the related discrepancies. The Consultant will not add any new drawings or make any changes to the plans or specifications that are not a result of comments received by the City, regulatory review, or a final in-house quality control check. Consultant and City shall conduct a workshop to verify that all City comments have been addressed and all permit conditions are accounted for. After the City’s back-check review is complete, Consultant shall revise the documents and submit Final Bid Documents.

The 100% back-check design deliverable shall include a statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked in full conformance with Consultant’s QA/QC Plan.

The 100% back-check design deliverable shall include 4 hard copies and one print-ready PDF on electronic media acceptable to the City of all deliverables.

The Final Bid Documents will include finished, checked and completed plans and specifications, and will incorporate all City comments from previous submittals. The Consultant will document in-house changes and submit them to the City along with the Final Bid Documents.

The Final Design submittals will also include all final databases, reports, construction schedules, cost estimates, engineering calculations and bid ready project plans and specifications.

All plans, detailed specifications and engineering calculations will be stamped and signed by a Registered Engineer in the State of California.

An updated construction cost estimate (AACE Class 1) and construction sequencing plan and schedule will be included with the deliverables.

The Final Bid Documents deliverable shall include one print-ready PDF on electronic media acceptable to the City of all deliverables.

Task 5 – Bid Period Assistance
This task shall be conducted independently for each identified project(s) awarded to the Consultant.

The Consultant shall provide assistance during the bid period, including the following:
 Participate in the pre-bid conference, if necessary.
 Prepare responses to bidder’s questions.
 Prepare addenda to Bid Documents, as needed.
 Participate in reviewing alternate equipment and material proposals from the contractor, if applicable.
 Participate in the evaluation of the submitted bids, furnish consultation and advise to City staff, and assist with all the related equipment, cost and other analyses as required to finalize the award decision.
 Prepare conformed drawings and specifications that incorporate all addenda. The Final Conformed Documents deliverable shall include one print ready PDF on electronic media acceptable to the City.

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Task 6 – Construction Phase Services
This task shall be conducted independently for each identified project(s) awarded to the Consultant. The Consultant shall provide services during construction, which may include the following:
 Attendance at pre-construction conference and construction progress meetings  General technical support
 Periodic field visits
 Submittal review
 Request for information responses and review
 Change order and contract document modifications preparation and review  Progress payment application review
 Construction closeout support
 Preparation of record drawings

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EXHIBIT B

PAYMENT RATES

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Rate Schedule
Carollo Engineers
January 1, 2027 through December 31, 2027
Raw Labor Cost1
Category/Team Member (Representative
raw labor for
category)
Raw Labor
Cost with 1%
Escalation2
Fringe
Benefits3:

76.02% of
Direct Wages
Overhead4:

96.82% of
Direct Wages

Subtotal

Profit: 12%

Hourly Billing
Rate
Project Manager $ 117.00
Design Manager $ 120.25
Principal Professional $ 99.78
Senior Professional $ 91.00
Lead Professional $ 93.28
Professional $ 87.75
Staff Professional $ 77.35
Engineering Intern $ 74.75
Senior Designer $ 87.43
Senior Project Services Administrator $ 57.85
Lead Document Processor $ 83.53
$ 118.17
$ 121.45
$ 100.77
$ 91.91
$ 94.21
$ 88.63
$ 78.12
$ 75.50
$ 88.30
$ 58.43
$ 84.36
$ 89.83 $ 114.41 $ 322.42 $ 361.10 $ 361.10
$ 92.33 $ 117.59 $ 331.37 $ 371.14 $ 371.14
$ 76.61 $ 97.57 $ 274.95 $ 307.94 $ 307.94
$ 69.87 $ 88.99 $ 250.77 $ 280.86 $ 280.86
$ 71.62 $ 91.21 $ 257.04 $ 287.88 $ 287.88
$ 67.37 $ 85.81 $ 241.81 $ 270.83 $ 270.83
$ 59.39 $ 75.64 $ 213.15 $ 238.73 $ 238.73
$ 57.39 $ 73.10 $ 205.99 $ 230.71 $ 230.71
$ 67.13 $ 85.49 $ 240.92 $ 269.83 $ 269.83
$ 44.42 $ 56.57 $ 159.42 $ 178.55 $ 178.55
$ 64.13 $ 81.68 $ 230.17 $ 257.79 $ 257.79
Technology Charge per direct labor hour of $17/hr is charged separately as PECE. Included in PECE is telephones, computers, servers, software, etc. and costs for ITT employees.
1 This is a representative raw labor cost for listed category. Not all staff categories are included. Actual staff raw labor cost and categories will be provided at the time of Task Order assignment based on staff assignment for the particular task order. 2 If a contract starts within one (1) quarter from when the Consultant would normally increase their employee rates, an increase up to 1% is allowed for all staff working in the first year, to begin at the starting date of the contract, and will be frozen until the anniversary of the contract. This will cover anticipated first year salary increases. Thereafter, an average maximum 3% increase for all staff working on the project from year 1 will apply. 3 Fringe includes health and disability insurance, employment taxes, retirement and other employment benefits. Audited fringe rate to be adjusted annually. 4 OH includes indirect labor, travel, professional fees, dues and subscriptions, automobile, insurance, rent repair and maintenance, depreciation and gain of disposal assets, supplies, postage, and reproduction, interest and other associated costs. Audited overhead rate to be adjusted annually.

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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, 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, 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 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, 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 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

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of Cancellation endorsement is not available, CONSULTANT shall ensure the requisite Notice of 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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Exhibit D

Project Schedule

Consultant shall prepare a schedule for City review and approval prior to issuance of Task Order.

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AGREEMENT WITH FREYER & LAURETA, INC.

FOR PROFESSIONAL CONSULTANT SERVICES
FOR
2026 ON-CALL CONSULTING SERVICES FOR ANNUAL SANITARY SEWER REHABILITATION

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 FREYER & LAURETA, INC., a Corporation, (“CONSULTANT”), whose address is 150 Executive Park Boulevard, Suite 4200, San Francisco, CA 94134:

RECITALS:

A. CITY desires certain professional services hereinafter described.

B. CITY desires to engage CONSULTANT to provide these professional 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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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

This Agreement shall be valid for a duration of five (5) years. The services to be performed under this Agreement shall commence upon execution of the Agreement and be completed on June 30, 2031.

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 in an amount of $2,000,000, 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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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

Indemnity for Design Professional Services. CONSULTANT 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 CONSULTANT’s negligence, recklessness or willful misconduct in the performance of its design professional services under this Agreement. To the maximum extent permitted by law and Civil Code section 2782.8, CONSULTANT agrees to defend CITY, its elected and appointed officials, employees, volunteers, and agents against any such claims.

Indemnity for Activities Other Than Design Professional Services. CONSULTANT 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 CONSULTANT’s performance of non-design professional services under this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONSULTANT agrees to defend City, its elected and appointed officials, employees, volunteers, 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.

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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.

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 – 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.

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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.

SECTION 20 - LITIGATION

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: Laura Webb
City of San Mateo
300 W. 20th Avenue
San Mateo, CA, 94403

To CONSULTANT: Freyer & Laureta, Inc.

Attn: Jeffrey Tarantino
150 Executive Park Boulevard, Suite 4200
San Francisco, CA 94134

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

CITY OF SAN MATEO

CONSULTANT

Matt Fabry
Public Works Director

Date Jeffrey Tarantino
Its Authorized Agent
Vice President / Secretary of the
Board

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

Date

APPROVED AS TO FORM

ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)

Linh P. Nguyen
Assistant City Attorney
Date David Freyer
Vice President / Treasurer

Date

Attachments:

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

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EXHIBIT A

SCOPE OF SERVICES

The Consultant will provide consulting services for sanitary sewer rehabilitation for all project elements listed in this Scope of Services. The project and fee negotiations will be executed in three phases for the sewer rehabilitation project as shown below and further defined in this Scope of Services:

Phase 1
Task 1 - General Services
Task 2 - Video Inspection & Cleaning Services
Task 3 – Evaluation of Video Inspection Data

Phase 2
Task 1 - General Services
Task 4 – Project Design and Construction Documents
Task 5 – Bid Support

Phase 3
Task 1 – General Services
Task 6 – Construction Phase Services

See the chart below for the approximate number of manholes and length of pipe located within Basins A, B, C, El Camino Real, and Basin D:

Basin Manholes Pipes (LF)
A 972 223,963
B 1,019 235,366
C 937 170,980
ECR 148 56,657
D 1,168 245,030
Typical tasks that are required of the Consultant under these categories are detailed in the following sections. Throughout the design of this project, the Consultant will submit deliverables for review and approval by the City and other governing agencies as required. A preliminary description of proposed deliverables has been provided in this Scope of Services and will be finalized during contract and fee negotiations.

The deliverables required by the Consultant will vary depending on the necessary improvements to the sewer lines defined for each basin. All drawings and maps shall be developed using AutoCAD, ArcGIS and PDFs capable of plotting at a legible scale, on both 11x17” and 22x34” sheets.

Additional deliverable information is provided in the various task descriptions below.

For the 60%, 90%, and 100% design submittals, the Consultant shall attend a review meeting with City staff where the submittals will be presented to the City and will demonstrate that previous City comments have been addressed in the submittal.

The City reserves the right to discontinue, alter, or postpone services at any time.

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Task 1 – General Services
Project management and coordination include tasks that will be performed by the Consultant throughout the project. Task 1 will cover all general services required for Phase 1, Phase 2, and Phase 3 for the sewer line rehabilitation project. These services include:
 General Project Management and Coordination
 Risk Management
 Workshops and Meetings
 Management of Subconsultants and Subcontractors
 Agency Coordination and City Meeting Support
Further information regarding expectations for these services will be issued as a separate program standard in the Design Standards and Guidelines, prior to the first phase negotiations.

Task 1.1 – Project Management
Task 1.1.1 – General Management
The Consultant will be responsible for detailed management of the project, including subconsultants and subcontractors, and will keep the City appraised of the status of the project.

The Consultant will provide the key management personnel as described in their proposal on this project. The Consultant will not reassign the key project personnel without prior approval of the City per the Standard Agreement for Professional Consultant Services.

Task 1.1.2 – Progress Report
The Consultant will prepare and submit monthly progress reports that include a narrative of the work completed by task, project action item log, upcoming work, project issues, budget and schedule status, percent complete, cost to complete, earned value versus actual spent analysis, potential scope or budget changes, and other important project information. The monthly progress report will be submitted with the project invoice as part of the monthly request for payment. The invoices will comply with Program standards. The invoices will document the man-hours and billing rates for staff for each task in the WBS, as well as overhead, profit and any direct costs. The current and previous billing period invoicing, as well as a summary of the budget spent, budget remaining, cost to complete, and all backup documentation for expenses will be included. The monthly progress report and project schedule will be submitted with the project invoice as part of the monthly request for payment.

Task 1.2 – Risk Management
The Consultant will participate in the development and maintenance of a set of project risks in coordination with the Project Manager and the Program’s risk management team. The Consultant shall review the risks and mitigation measures previously identified by the Program and determine if additional risks or mitigations are required. Consultant shall implement any risk mitigations assigned to them as part of the risk development process. If both the City and the Consultant determine that a meeting is required, a risk review meeting will be conducted within one month after Notice to Proceed and will be addressed as needed throughout the course of the project. This meeting will be about one hour in length and may be combined with other meetings between the City and the Consultant.

Task 1.3 – Workshops and Meetings
The Consultant will prepare and submit to the City an agenda and meeting minutes for each formal meeting or workshop and hold progress meetings. Assume monthly meetings for CCTV work, monthly for design work and

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monthly for services during construction.

Task 1.4 – Quality Control
The Consultant will develop a Quality Assurance/Quality Control (QA/QC) Plan for implementation of the Scope of Work. The Consultant’s QA/QC Plan will be reviewed and approved by the City Project Manager and will include or reference all the controls necessary for implementation. QA/QC Plans shall include detailed requirements for providing the required integrity for all field work, including conducting the explorations, sampling, and sample custody and transport. All QA/QC procedures for laboratory work shall be included. Each submittal, or partial submittal of testing results shall be accompanied by a written certification, signed by the Consultant’s Project Manager and the responsible individual from the applicable subconsultant, stating that all QA/QC procedures have been complied with for the information or submittal being delivered to the City.

Submittals that do not include the written certification of compliance or that contain gross deficiencies or errors requiring a significant amount of the City staff time for checking will be returned without review until the City is satisfied that a thorough Consultant’s review, compliance with standards, checking and correction for coherence, consistency, spelling, etc., has been performed.

Task 1.5 – Management of Subconsultants
If the Consultant requires the services of any subconsultants, then the Consultant will include a list of them in the proposal, explain why they are needed, and provide a general description of their effort.

The Consultant will manage the activities of subconsultants during performance of the project. All requirements of the contract shall also apply to subconsultants.

Task 1.6 – Agency Coordination
The Consultant will assist the City in coordinating the project with various local/county, state/regional, and federal agencies. This task includes attending meetings, as needed, with applicable agencies, providing meeting minutes, and providing project information and exhibits to the agencies. This task is established as an allowance task and shall only be used when specifically requested by the City in writing. Costs for this task shall be invoiced as a separate line item and shall include a copy of the authorization from the City.

Task 2 –Video Inspection and Cleaning Services
This task should be conducted independently, on an as-needed basis as determined by the City, for each sewer rehabilitation project awarded to the Consultant.

Task 2.1 Plans
For the sewer rehabilitation projects where the City has deemed video inspection and cleaning services are required, the Consultant will create Plans showing all sewer lines and manholes within project limits, as well as a Traffic Control Plan. The City will provide the Consultant with project limits, current GIS data, and sample Plans. The Consultant will provide drafts of the Plans until City reviewers are satisfied and the project has been deemed ready for the Consultant’s CCTV subcontractor to perform the work. The Consultant’s subcontractor should follow City Standard CCTV Guidelines. Refer to the City of San Mateo Sewer System Management Plan (SSMP), Appendix 4.2.

Task 2.2 Pipe and Manhole Inspections and Cleaning
The Consultant will manage their CCTV subconsultant while the investigation and cleaning operations occur. The Prime Consultant or CCTV subconsultant shall be NASSCO PACP and MACP certified in order to perform pipe and manhole inspections. Ideally the Prime Consultant is also NASSCO certified; however, it is sufficient if only the CCTV subconsultant performing the inspections is certified. Consultant shall provide

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inspection videos and reports to the City as they receive them from their CCTV subcontractor. Consultant will begin Task 3 operations concurrently with Task 2.2 for the same project.

Task 3 – Evaluation of Video Inspection Data
This task should be conducted independently for each sewer rehabilitation project awarded to the Consultant.

Task 3.1 Evaluation Technical Memorandum
The consultant will be responsible for reviewing and evaluating the video inspection data provided to them for sanitary sewer mains and manholes. The consultant will then prioritize repairs based on the available project budget, the urgency of the repairs, and the value of the repair to maintenance and operation of the sewer system with the City’s input.

The City will share a list and/or map of roads that are under pavement excavation moratorium, as well as those roads which are scheduled for paving work. The consultant will identify if any of the proposed sewer repairs overlap with these road segments.

The results of this evaluation shall be included in a technical memorandum provided to the City.

Task 3.2 GIS Deliverable
The consultant shall provide the City with a GIS file containing all recommended repairs upon completion of the Evaluation Technical Memorandum.

Task 4 – Project Design and Construction Documents
This task should be conducted independently for each sewer rehabilitation project awarded to the Consultant. Consultant shall design repairs or improvements resulting from the inspection evaluation.

Consultant shall provide drawings for each repair or improvement and compile them into one or more project packages as agreed with the City. The design work entails taking the video inspection evaluation (Task 3) and designing the changes that will be required to repair any broken pipes or manholes.

Task 4.1 – 60% Design Development
The design activities and design elements shall become more concrete once the projects are assigned and shall be at a 60% level of completion.

A statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked in full conformance with the Consultants QA/QC Plan will be required.

All design work shall be in conformance with the Clean Water Program design guidelines and standards which will be provided to the Consultant during the negotiation phase.

The 60% design deliverable shall include one print ready PDF on electronic media acceptable to the City of all deliverables.

Task 4.1.1 – Field Investigations
The Consultant shall conduct field investigations as required to verify if there are any potential impacts to/from surrounding features that need to be addressed in the design for each sewer rehab location. The City will provide ArcGIS information in relation to the specific locations that is identified for rehab to the Consultant for use on the project.

The field investigation shall note all obstructions that may be affected by the needed improvements. The

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Consultant shall conduct a thorough investigation at easement locations, which includes taking pictures of upstream and downstream manholes, and documenting any obstacles in the way. The Consultant will be responsible for obtaining all permits and access agreements to perform the survey, as well as providing any necessary traffic control.

This work shall be completed before commencing with Task 4.2.

If a Subconsultant is used for this work, the Consultant will identify the Subconsultant with the response to this RFP.

Task 4.1.2 – 60% Design Submittal
The design submittal at 60% shall include initial design drawings, calculations, databases, specifications, schedule and any other project documentation to support this submittal. Consultant shall provide plan and profile drawings for any segment where the repairs cross roadways, or additional locations as requested by the City. Point repairs (i.e. 6’ length repairs) in roadways will not be required to be designed with plan and profile drawings, unless specifically requested by the City.

Task 4.2 – 90% Design Development
This task shall be conducted independently for each sewer rehabilitation project awarded to the Consultant. All design work shall be in conformance with the Clean Water Program design guidelines and standards, which will be provided to the Consultant during the negotiation phase.

For the 90% Design Submittal, the major design elements shall be well-established and essentially complete.

All supplementary/auxiliary design elements shall be incorporated between the 60% and 90% Design Submittals for a complete design package. Drawings for all disciplines shall be substantially complete.

Specifications shall be substantially complete and include all sections and all divisions including the legal, procedural, and general “front end” sections.

This submittal will include all finished, checked and completed plans and specifications. No new drawings and/or specification sections by the Consultant will be expected after this stage. All City comments on the previous submittal will have been resolved, rejected, addressed and/or incorporated in this submittal. The project is essentially finished and submitted as complete. The only missing effort is the City final review and regulatory approval with comment incorporation.

Consultant’s checking will include a review of all deliverables within each discipline (i.e. drawings, detailed specifications, project support documentation, etc.) and an inter-discipline coordination cross-check to correct discrepancies among the project documents.

Discipline calculations, databases, construction cost estimates, schedule, and other project support documentation will be updated and submitted to the City to reflect the status of the Drawings and Detailed Specifications and will support the 90% design submittal workshops.

A construction cost estimate (AACE Class 2) with basis of estimate narrative and construction sequencing plan and schedule shall be included with the deliverables.

The 90% design deliverable shall include a statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked and that they are in full conformance with Consultant’s QA/QC Plan. Additionally, the City will require the Consultant to fill out and sign the City’s QC Certification form.

The 90% design deliverable shall include one print-ready PDF on electronic media acceptable to the City of all deliverables.

Task 4.3 – 100% Design and Bid Documents

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This task shall be conducted independently for each identified project(s) awarded to the Consultant. All design work shall be in conformance with the Clean Water Program design guidelines and standards, which will be provided to the Consultant during the negotiation phase.

Following receipt of all City and regulatory review comments on the 90% Design Submittals, the Consultant will prepare a Final (100%) Design and will submit the 100% design submittal as a final check set. The final check set shall include all bid documents. Prior to submittal, the Consultant will have performed an inter- disciplinary cross-check of the design changes made since the 90% design submittal and corrected the related discrepancies. The Consultant will not add any new drawings or make any changes to the plans or specifications that are not a result of comments received by the City, regulatory review, or a final in-house quality control check. Consultant and City shall conduct a workshop to verify that all City comments have been addressed and all permit conditions are accounted for. After the City’s back-check review is complete, Consultant shall revise the documents and submit Final Bid Documents.

The 100% back-check design deliverable shall include a statement signed by Consultant’s Project Manager that all deliverables have been reviewed or otherwise checked in full conformance with Consultant’s QA/QC Plan.

The 100% back-check design deliverable shall include 4 hard copies and one print-ready PDF on electronic media acceptable to the City of all deliverables.

The Final Bid Documents will include finished, checked and completed plans and specifications, and will incorporate all City comments from previous submittals. The Consultant will document in-house changes and submit them to the City along with the Final Bid Documents.

The Final Design submittals will also include all final databases, reports, construction schedules, cost estimates, engineering calculations and bid ready project plans and specifications.

All plans, detailed specifications and engineering calculations will be stamped and signed by a Registered Engineer in the State of California.

An updated construction cost estimate (AACE Class 1) and construction sequencing plan and schedule will be included with the deliverables.

The Final Bid Documents deliverable shall include one print-ready PDF on electronic media acceptable to the City of all deliverables.

Task 5 – Bid Period Assistance
This task shall be conducted independently for each identified project(s) awarded to the Consultant.

The Consultant shall provide assistance during the bid period, including the following:
 Participate in the pre-bid conference, if necessary.
 Prepare responses to bidder’s questions.
 Prepare addenda to Bid Documents, as needed.
 Participate in reviewing alternate equipment and material proposals from the contractor, if applicable.
 Participate in the evaluation of the submitted bids, furnish consultation and advise to City staff, and assist with all the related equipment, cost and other analyses as required to finalize the award decision.
 Prepare conformed drawings and specifications that incorporate all addenda. The Final Conformed Documents deliverable shall include one print ready PDF on electronic media acceptable to the City.

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Task 6 – Construction Phase Services
This task shall be conducted independently for each identified project(s) awarded to the Consultant. The Consultant shall provide services during construction, which may include the following:
 Attendance at pre-construction conference and construction progress meetings  General technical support
 Periodic field visits
 Submittal review
 Request for information responses and review
 Change order and contract document modifications preparation and review  Progress payment application review
 Construction closeout support
 Preparation of record drawings

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EXHIBIT B

PAYMENT RATES

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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, 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, 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 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, 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 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

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of Cancellation endorsement is not available, CONSULTANT shall ensure the requisite Notice of 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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EXHIBIT D

PROJECT SCHEDULE

Consultant shall prepare a schedule for City review and approval prior to issuance of Task Order.

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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: 26-3111 File ID: 26-11560 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: September 08, 2026
SUBJECT:

Marina Library Structural Improvement Project — Budget Transfer RECOMMENDATION:

Adopt a Resolution to authorize a budget transfer in the amount of $500,000 from the General Fund balance within the Capital Fund to the Marina Library Structural Improvement Project.

BACKGROUND:

The Marina Branch Public Library Restoration Project (Project) is implementing critical improvements, including foundation and structural repairs; mechanical, electrical and plumbing upgrades; accessibility improvements; exterior and landscaping improvements, and a relocated deck. The Project is currently under construction, with an estimated completion date of February 2027.

On June 16, 2025, Council approved a $5,405,000 contract with DL Falk Construction, Inc. for construction of the Project and a contingency reserve in the amount of $540,500 for unforeseen expenses. To date, approximately $40,000 of the contingency is needed for approved or pending change orders. In addition, over the course of construction, the Contractor experienced unexpected difficulties with the foundation repair and releveling scope, including the installation of the helical piles which took significantly longer than expected. This extended construction duration required additional special inspection services, extended construction management oversight, and extra involvement from the design team to ensure structural integrity and compliance. The increased costs for these professional services were approved by Council at the August 17, 2026, meeting, increasing the design agreement by $123,000 and the construction management/special inspection contract by $185,045, for a combined total of $308,045.

In addition to the helical pile issues, the Project’s Furniture and Shelving package, awarded during the July 20th City Council meeting for a total cost of $422,119.26, cost nearly $75,000 more than the designer’s estimate, primarily driven by increases in material and shipping costs and despite a Value Engineering review to identify potential cost-reduction measures.

Due to these additional expenses for the Project, staff anticipated a budget shortfall for the Project fund and planned to address the funding deficiency during the FY 2026–27 budget cycle. However, due to an oversight during the budget development process, the additional funding was not included in the adopted budget as originally intended.

Therefore, staff requests funding in the amount of $500,000 to replenish the Project fund in order to ensure the contingency reserve in the Project fund is sufficient for the remaining Project expenses. To date, the construction management team has identified approximately $380,000 in potential change orders based on current risk factors on the Project.

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Based on the above, staff recommends approving the budget transfer for $500,000 in General Fund from the Capital Fund to the Marina Branch Public Library Restoration Project. These budget transfers are necessary to continue the construction throughout the rest of the Project. The previous original contingency reserve authorization of $540,500 will remain, and no further increases are needed at this time.

BUDGET IMPACT:

There are currently insufficient funds in the Marina Library Structural Improvements Project (665100) to fully fund the anticipated remaining project expenses. Staff is requesting a budget transfer of $500,000 to the Project budget from the Capital Fund.

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).)

STRATEGIC PLAN ALIGNMENT
This staff report supports the Infrastructure initiative.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution

STAFF CONTACT
Charlie Evans, Assistant Engineer
[email protected]
(650) 522-7320

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4 CITY OF SAN MATEO
RESOLUTION NO. ____ (2026)
AUTHORIZING BUDGET TRANSFERS OF $500,000 FROM THE AVAILABLE GENERAL FUND BALANCE WITHIN THE

CAPITAL FUND TO THE MARINA LIBRARY STRUCTURAL IMPROVEMENT PROJECT IN THE CAPITAL PROJECTS FUND
WHEREAS, the Marina Branch Public Library located at 1530 Susan Court, San Mateo ("Library") is a City- owned property undergoing critical foundation, structural, mechanical, electrical, plumbing, accessibility, exterior, landscaping, and decking improvements as part of the Marina Branch Public Library Restoration Project ("Project"); and
WHEREAS, over the course of construction, the Contractor encountered unexpected field conditions and difficulties during the foundation repair and releveling scope, specifically regarding helical pile installation, which significantly extended the required timeline; and
WHEREAS, this extended timeline necessitated additional Special Inspection services in the amount of $185,045, extended Construction Management oversight, and additional Design Team involvement in the amount of $123,000 to maintain structural integrity and project compliance; and WHEREAS, procurement for the Project’s Furniture and Shelving package exceeded Design Team staff estimates by nearly $75,000 due to rising material and global shipping costs, which could not be reduced through Value Engineering without compromising product quality and functionality; and WHEREAS, the funding for the additional contract amendments and Furniture package had depleted the available unencumbered budget; and
WHEREAS, there is insufficient funding available in the Marina Library Structural Improvements Project (665100) to cover the remaining project expenses; and
WHEREAS, there is available General Fund funding in the General Fund balance within the Capital Fund to be transfer to the Marina Library Structural Improvement Project (665100).

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

1. This budget transfer is not a project subject to CEQA, because it consists of 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).)

2. A budget transfer in the amount of $500,000 to the Marina Library Structural Improvements Project (665100) from the General Fund balance within the Capital Fund is approved.

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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: 82-4681 File ID: 26-11563 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: September 8, 2026
SUBJECT:
2nd and El Camino Real Garage Traffic Coating Project — Agreement RECOMMENDATION:

Award an agreement to Angelus Waterproofing & Restoration, Inc. for waterproofing and protective measures at the 2nd and El Camino Real Garage in the amount of $244,777.00; establish a contingency reserve in the amount of $24,000.00; and authorize the Public Works Director to execute the contract in substantially the form presented and issue change orders within the contingency amount.

BACKGROUND:

The 2nd and El Camino Real Garage was constructed circa 1974 and consists of approximately five elevated levels and one at-grade level. The cast-in-place, post-tensioned structure includes concrete shear walls, vehicular ramps, and two stair towers. After making significant investments to address structural deficiencies in 2024, a 2025 assessment found the structure to be generally in good condition, with no observed deficiencies presenting a significant life-safety risk. However, the assessment identified the lack of existing waterproofing at the exposed top deck and recommended installation of a traffic membrane to limit water and chloride intrusion to help extend the structure’s useful life. Implementing these proactive waterproofing and protective measures will help prevent future deterioration, reduce long-term maintenance costs, and preserve the facility for continued use.

In July 2026, the bid documents for this project were developed and advertised. Bids were received on August 10, 2026, with the following results:

Company Bid Amount
Angelus Waterproofing & Restoration, Inc. $244,777.00
Authentic Restoration $575,000.00
The engineer’s estimate for this project was $250,000. Given the approaching wet weather season, timely completion of the project is critical. Therefore, staff recommends awarding the construction contract to Angelus Waterproofing & Restoration, Inc. as the lowest responsive and responsible bidder. Staff also recommends establishing a 10% contingency to address unforeseen conditions that may be encountered during construction.

BUDGET IMPACT:

The Downtown Parking Improvements Project (461001) currently has sufficient budget to fund this construction contract and contingency reserve.

ENVIRONMENTAL DETERMINATION:

This project is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair,

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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.)

STRATEGIC PLAN ALIGNMENT
This staff report supports the Infrastructure initiative.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Agreement

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

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5 AGREEMENT WITH ANGELUS WATERPROOFING & RESTORATION, INC.

FOR PUBLIC IMPROVEMENT
FOR
2ND & EL CAMINO REAL GARAGE TRAFFIC COATING
CITY PROJECT NO. 461001
THIS AGREEMENT FOR PUBLIC IMPROVEMENTS (“Agreement”), made and entered into in the City of San Mateo, County of San Mateo, State of California, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California, (hereinafter called "City") and ANGELUS WATERPROOFING & RESTORATION, INC., a CORPORATION, with offices at 17762 Metzler Lane, Huntington Beach, CA 92647 (hereinafter called "Contractor"), entered into this day of ____________________.

RECITALS:
(a) City has taken appropriate proceedings to authorize construction of the public work and improvements or other matters herein provided, and execution of this Agreement. (b) A notice was duly published for bids for the contract for the improvement hereinafter described.
(c) After notice duly given, on the date hereof, the City awarded the contract for the construction of the improvements hereinafter described to Contractor.

IT IS AGREED, as follows:

1. Scope of Work. Contractor shall perform the work according to Exhibit A - Scope of Work, attached and incorporated for reference.

2. Contract Price. City shall pay, and the Contractor shall accept, the sum of Two Hundred Forty-Four Thousand, Seven Hundred Seventy-Seven dollars ($244,777.00) in full payment for the work set forth above.

Said price is determined by the prices contained in Contractor's bid, and shall be paid as described in the Contract Book. In the event work is performed or materials furnished in addition to or a reduction of those set forth in Contractor's bid and the specifications herein, such work and materials will be paid for as described in the Contract Book.

3. The Contract Documents. The complete contract consists of the following documents: this Agreement; the Notice Inviting Sealed Proposals; the Accepted Proposal; the Contract Book which includes the Special Provisions and Contract Drawings, Addendum Number 1 issued to the Contract Book, the APWA-AGC Standard Specifications for Public Works Construction, 2015 Edition, the Faithful Performance Bond, and the Labor and Material Bond (hereinafter referred to as the “contract documents”).

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5 All rights and obligations of City and Contractor are fully set forth and described in the contract documents. The contract documents constitute the entire contract between the parties hereto pertaining to the subject matter hereof, fully supersede any and all prior understandings, representations, warranties and agreements between the parties hereto, or any of them, pertaining to the subject matter hereof, and may be modified only by written agreement signed by all of the parties hereto.

All of the above-named documents are complementary and are intended to operate in harmony, so that any work called for in one, and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. In the event of any variation or discrepancy between any portion of this Agreement and any portion of the contract documents, this Agreement shall prevail.

The precedence of the remaining contract documents will be as specified in the Contract Book.

4. Schedule. All work shall be performed in accordance with the schedule provided pursuant to the Contract Book.

5. Performance by Sureties. In the event of any termination as hereinbefore provided, City shall immediately give written notice thereof to Contractor and Contractor's sureties, and the sureties shall have the right to take over and perform the Agreement, provided, however, that if the sureties, within 5 days after giving them said notice of termination, do not give City written notice of their intention to take over the performance thereof within 5 days after notice to City of such election, City may take over the work and prosecute the same to completion, by contract or by any other method it may deem advisable, for the account, and at the expense of Contractor, and the sureties shall be liable to City for any excess cost or damages occasioned City thereby; and, in such event, City may, without liability for so doing, take possession of, and utilize in completing the work, such materials, appliances, plant and other property belonging to Contractor as may be on the site of the work and necessary therefor.

6. Legal Work Day - Penalties for Violation. Eight hours of labor shall constitute a legal day's work.

Contractor shall not require more than 8 hours labor in a day and 40 hours in a calendar week from any person employed by Contractor in the performance of such work unless such excess work is compensated for at not less than 1-1/2 times the basic rate of pay. Contractor shall forfeit as a penalty to City the sum of $25.00 for each laborer, workman or mechanic employed in the execution of this contract by Contractor, or by any subcontractor for each calendar day during which such laborer, workman or mechanic is required or permitted to labor more than 8 hours in any calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 and 1816, inclusive, of the Labor Code of the State of California.

7. Prevailing Wage Scale. The prevailing wage scale as determined by the Director of Industrial Relations of the State of California, in force on the day the bid was announced, will be the minimum paid to all craftsmen and laborers working on this project. Contractor shall also require any subcontractors who work or provide any services related to the project to pay all persons performing labor or rendering service under said subcontract or other arrangement at least the general prevailing rate of wages, determined as set forth herein for the respective crafts and employments, including such wages for holiday and overtime work. A copy of the correct determination will be posted at the job site. It is understood that it is the responsibility of Contractor to determine the correct scale. Copies of the

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5 prevailing wage rates are on file at the City Clerk's office, however, errors or defects in the materials in the City Clerk's office will not excuse a bidder's failure to comply with the actual scale then in force.

Contractor must submit certified payrolls to the Department of Industrial Relations in accordance with Labor Code Section 1776.

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.

8. Senate Bill 854 Compliance Required. In accordance with Labor Code Sections 1725.5 and 1771.1, all contractors and subcontractors must be registered with the Department of Industrial Relations.

In accordance with Labor Code Section 1771.4 the contractor must post job site notices as required by regulation and this project will be subject to compliance monitoring and enforcement by the Department of Industrial Relations.

9. Insurance. The Contractor shall procure and maintain for the duration of the contract and five years thereafter the insurance as specified in Exhibit B of this agreement.

10. 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 active negligence, 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.

11. 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.

12. 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 California State Board of Mediation and Conciliation, 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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5 13. Provisions Cumulative. The provisions of this agreement are cumulative, and in addition to and not in limitation of, any other rights or remedies available to City.

14. Notices. All notices shall be in writing, and delivered in person or transmitted by certified mail, postage prepaid.
a. Notices required to be given to City shall be addressed as follows:

Public Works Director
City of San Mateo
330 West 20th Avenue
San Mateo, CA 94403
Notices required to be given to Contractor shall be addressed as appears in the signature block as shown on the Bidder's Statement.

15. Interpretation. As used herein any gender includes each other gender, the singular includes the plural and vice versa.

16. Governing Law and Venue. This Agreement, the contract documents, and the performance hereon shall be governed, interpreted, construed, and regulated by the laws of the State of California. The parties agree that any action related to this Agreement or the contract documents will be venued in the County of San Mateo.

17. Headings. The title and headings of the various sections of this Agreement and the contract documents are intended solely for convenience of reference and are not intended to explain, modify, or place any construction on any provisions.

18. No Partnership or Agency. Nothing in this Agreement nor the contract documents shall be deemed to constitute a partnership in law between City and Contractor, or any sub-contractor, to constitute either party as an agent of the other for any purpose; or to entitle either party to commit or bind the other in any manner unless expressly agreed upon in the contract documents.

19. Severability. If any part or provision of the contract documents is determined by any court to be illegal, invalid, or unenforceable, in whole or in part, the contract documents shall continue to be valid as to its other provisions and the remainder of the affected provision, unless it can be concluded from the circumstances that, in the absence of the provisions found to be null and void, the parties would not have entered into the contract documents. The parties shall use all reasonable efforts to replace any and all provisions or parts found to be null and void with provisions that are valid under the applicable law and come closest to their original intention.

20. Waiver. None of the following shall operate as a waiver of any provision of the contract documents, or of any power herein reserved by the City, or any right to damages herein provided: 1) inspection by the City or its authorized agents or representatives; 2) any order or certificate for payment, or any payment for, or acceptance of the whole or any part of the work by the City; 3) an extension of time; or 4) any position taken by the City or its authorized agents or representatives.

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5 21. Warranty. Contractor warrants and guarantees that the materials and equipment provided shall be at least of the quality specified and new unless otherwise required or permitted by the contract documents, and, if no quality is specified, then the materials and equipment shall be of commercial grade, suitable for heavy public use in facilities of similar size and complexity, that the work performed hereunder will be free from defects, and that the work will conform to the requirements of the contract documents.
[SIGNATURE PAGE FOLLOWS]

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5 IN WITNESS WHEREOF, this agreement between the CITY OF SAN MATEO and ANGELUS WATERPROOFING & RESTORATION, INC. has been duly executed by the parties hereinabove named, as of the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Matt Fabry
Public Works Director
Date Stephan Claus
Its Authorized Agent
President
If a Corporation, can be either 1)
President or 2) Vice President plus
an additional corporate officer
(i.e., Secretary, Treasurer) who
shall sign below.

Date

APPROVED AS TO FORM
Linh P. Nguyen
Assistant City Attorney
Date
Exhibit A: Scope of Work
Exhibit B: Insurance Requirements

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5 Exhibit A
Scope of Work
Install traffic coating and re-stripe parking lot at top floor of parking garage as described in the contract documents.

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5 EXHIBIT B

INSURANCE REQUIREMENTS FOR CONSTRUCTION CONTRACTS
Contractor shall procure and maintain for the duration of the contract, and for x years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees, or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE

Coverage shall be at least as broad as:

1.Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2.Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage.

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

4.Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.

5.Surety Bonds as described below.

6.Professional Liability (if Design/Build), with limits no less than $2,000,000 per occurrence or claim, and $2,000,000 policy aggregate.

7.Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.

If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be entitled to the broader coverage and/or higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the Entity. At the option of the Entity, either: the contractor shall cause the insurer shall to reduce or eliminate such self-insured retentions as respects the Entity, its officers, officials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the Entity guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Entity.

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

1.The Entity, its officers, officials, employees, volunteers, and agents are to be covered as additional insureds 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 and automobiles owned, leased, hired, or borrowed by or on behalf of the Contractor. 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, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, volunteers, and agents. Any insurance or self- insurance maintained by the Entity, its officers, officials, employees, volunteers, and agents shall be excess of the Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the Entity.

Builder’s Risk (Course of Construction) Insurance
Contractor may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the Entity as a loss payee as their interest may appear.

If the project does not involve new or major reconstruction, at the option of the Entity, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the Entity’s site.

Claims Made Policies – (If at all possible avoid and require occurrence type CGL policies) If any coverage required is written on a claims-made coverage form:

1. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of contract work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective, or start of work date, the Contractor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.

4. A copy of the claims reporting requirements must be submitted to the Entity for review.

5. If the services involve lead-based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

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5 Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M.

Best rating of no less than A: VII, unless otherwise acceptable to the Entity.

Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the Entity for all work performed by the Contractor, its employees, agents and subcontractors.

Verification of Coverage
Contractor shall furnish the Entity with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to Entity before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that Entity is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Bid bond

2. Performance bond

3. Payment bond

4. Maintenance bond
The Payment Bond and the Performance Bond shall be in a sum equal to the contract price. If the Performance Bond provides for a one-year warranty a separate Maintenance Bond is not necessary. If the warranty period specified in the contract is for longer than one year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances.

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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: 10-3133 File ID: 26-11333 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: September 8, 2026
SUBJECT:

Housing Fund — Informational Update
RECOMMENDATION:

Receive an update on the status of the City’s housing funds and provide direction on funding strategy and prioritization for the next five years.

BACKGROUND:

As the City continues implementation of its 2023-2031 Housing Element and pursues major grant programs to support its efforts, there is a need to develop a housing funding strategy for the next five years. The purpose of this study session is to seek City Council direction on upcoming funding-related opportunities, including compliance with the Metropolitan Transportation Commission’s Transit-Oriented Communities (MTC TOC) Policy, pursuing a Prohousing Designation from the State, and use of Permanent Local Housing Allocation (PLHA) funding, and how to prioritize expenditure of City Housing funds.

Housing Funding Policy Framework
There are specific Housing Element policies, grant program requirements, and community feedback received over the past year that should guide how the framework for a Housing funding strategy is developed. 2023-2031 Housing Element
The City of San Mateo’s 2023-2031 Housing Element (Housing Element) established goals, policies, and programs to facilitate the production of 7,015 housing units and address key housing challenges identified through the housing needs assessment and community input process. The following policies and programs in the Housing Element workplan directly address the allocation or prioritization of City housing funds:
•Policy H1.2: Utilize Public Funding and Properties for New Affordable Housing oAction: Identify ways to create a stand-alone Housing Trust Fund and utilize that fund to leverage new funding sources.
oAction: Prioritize available local housing funds to assist in the production of at least 543 below market rate units by 2031; emphasis on ELI units.
oAction: Support affordable housing development, including ELI units, on the City owned property at 4142 S. El Camino Real.
•Policy H2.2: Support Retention of Existing Lower Income Units oAction: Coordinate with the owners of Bridgepointe Condominiums and identify a funding source to preserve the 24 very low-income units as affordable upon expiration of the City’s regulatory agreement in 2027. oAction: Coordinate with the owners of Belmont Building (6 units) and identify funding source to preserve the

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units prior to expiration of the City’s regulatory agreement in 2036. •Policy H3.1: Prevent Homelessness
oAction: Allocate PLHA, CDBG, and other local funds to support homeless prevention. •Policy H2.3 Increase Energy and Water Efficiency in Existing Units oAction: Weatherization upgrades through grants for lower-income residents; serve 7 annually. •Policy H5.1.3 Explore the potential to implement a loan program for ADU construction. oAction: Work with 21 Elements collaborative to design a regional loan forgiveness program. *This is a summary of relevant Housing Element items. For the full text of Housing Element Goals, Policies, and Programs, please refer to the Housing Element.

Regional and State Housing and Funding Programs
Three upcoming opportunities at the regional and state level will require prioritization of housing funds to align with program requirements and position the City to be more competitive for housing and transportation grant funding.

MTC TOC Policy - The City is currently pursuing full compliance for the Transit-Oriented Communities (TOC) Policy Incentive Program, a program of the Metropolitan Transportation Commission (MTC). Last May, MTC changed the TOC Policy program so that compliance is no longer mandatory to compete for One Bay Area Grant (OBAG) funding, but instead makes the City eligible for additional funding. The TOC Policy includes standards for density near transit, parking and transportation; a commercial stabilization policy; and housing policies in the areas of production, preservation, and protection. The City received a $610,000 TOC grant for the Comprehensive Zoning Code Update in 2025 with a commitment to pursue partial TOC Policy compliance as part of the Zoning Code Update effort.

Permanent Local Housing Allocation - The City is a recipient of the Permanent Local Housing Allocation (PLHA), a formula- based (noncompetitive), state-funded grant program administered by the Department of Housing and Community Development (HCD) for housing-related projects and programs to address housing needs. The program runs on a five-year cycle, the first of which ended on June 30, 2026. PLHA requires jurisdictions to create a Five-Year Plan for the uses of PLHA funds. The process to develop the City’s next five-year plan will begin in fall 2026.

Prohousing Designation Program - City staff is also researching the State’s Prohousing Designation Program (PDP), an HCD program that rewards local governments that go beyond minimum state laws to remove barriers to housing production, streamline approvals, and adopt inclusive zoning. Prohousing Designated cities gain scoring preferences for state grants and exclusive access to the Prohousing Incentive Program (PIP), a grant program also administered by HCD.

Community Feedback on Anti-Displacement and Housing Stability Common themes have emerged from community outreach conducted for the City’s Housing Element and housing policy discussions that may also inform the City’s housing funding strategy. Many funding-related comments have centered around the importance of emergency rental assistance, free legal aid, and tenant-landlord education in preventing eviction of lower-income tenants.

On August 19, 2026, the Community Relations Commission (CRC) held a discussion on housing funding priorities at its regular meeting. At the meeting, members of the public expressed strong support for increasing funding for legal aid, tenant education and outreach, and emergency rental assistance. Comments emphasized the need for deeply affordable housing; case management, especially for lower-income seniors; and programs for home repairs or weatherization/energy efficiency upgrades for lower-income seniors. Commissioner feedback reinforced these comments and emphasized a need for investments in homelessness prevention and new affordable housing for the lower-income senior population.

Housing Division Restricted Funds and Fund Balances
The Housing Division administers several restricted housing funds. These funds draw revenue from various sources,

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including new commercial development, new affordable housing development, loan repayments and revenues from the former Redevelopment Agency, and state and federal grants. In recent years, the City has seen significant revenue in some of these restricted funds, though annual revenue varies significantly, and projections can be challenging. Each housing fund, its estimated balance as of July 1, 2026, and its primary uses are listed below. Summaries of each fund from the City’s adopted FY26-27 Budget are included in Attachment 2.

Housing Successor/LMIHAF/RDA (Fund 255) - $5,381,000
The Low- and Moderate-Income Housing Asset Fund (also called “Housing Successor” Fund or “RDA” 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 (RDA). State law regulates the usage of these funds to support housing projects that assist households whose income ranges up to 80% of the Area Median Income (AMI).

This fund has a statutory limit of spending up to $500,000 annually for services to prevent homelessness or serve households experiencing homelessness. Administrative expenses of up to $518,000 can also be covered through this source for overseeing RDA assets. The City’s Emergency Rental Assistance Program and the Police Department Homeless Outreach Team (HOT) are both currently funded with RDA money. The fund has also been used for loans to the Kiku Crossing and Bespoke affordable housing developments. The annual revenue for this fund is unpredictable; however, staff estimates a conservative annual revenue of approximately $200,000.

Commercial Linkage Fee (Fund 270) - $3,795,000
The Commercial Linkage Fee (CLF) is assessed 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 who make up to 120% of AMI and for rehabilitation of housing units. The state requires jurisdictions to program CLF funds every five years and report on the updated CLF budget.

In Fiscal Year (FY) 25-26, $1,000,000 of CLF money was set aside to support the Bespoke affordable housing development. Previously, CLF has been used to fund the construction of the Kiku Crossing affordable housing development. Revenue is dependent on projects receiving a building permit. This is challenging to predict; however, staff estimates that a cumulative amount of up to $7,000,000 could be collected over the next five years based on the current project pipeline.

City Housing Fund (Fund 250) - $1,563,000
The City Housing Fund captures a variety of housing-related revenues, including loan repayments from prior federal rehabilitation and City first-time homebuyer loans, fees collected for housing loan subordination requests, and Below Market Rate (BMR) program in-lieu fees. This fund is less restrictive, but annual revenues are highly unpredictable. Staff estimates an annual revenue of approximately $260,000.

The fund currently supports Housing Division staff salaries and the First-Time Home Buyer Program’s Administrator. Below market rate (BMR) loans to low-income home buyers are also supported through this funding source; one to two loans of $50,000 are issued each year.

General Fund Housing Set Aside (Fund 130) - $6,470,000
Since the dissolution of Redevelopment Agencies, the City has voluntarily set aside 20% of General Fund property tax revenues from its former Redevelopment Areas to be used for affordable housing development and other housing-related programs. This flexible source of funding has been used in recent years for staff salaries, loans to affordable housing projects, and grants for housing case management. As part of the recently amended Housing Element approved by HCD, if the City is forecasting and experiencing a budget deficit the City may forgo its annual General Fund contribution to the Housing Set Aside Fund.

PLHA (Fund 280) - $48,000 (remaining of $293,103 total allocation for FY25-26) The Permanent Local Housing Allocation (PLHA) is a state grant program administered by HCD that began in 2020. Funding

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is continuous through state receipts of document recording fees each year. These funds may be used for housing-related projects and programs that assist in addressing unmet housing needs. Funds are awarded in five-year cycles and are distributed to local grant recipients following a City Council-adopted Five-Year Plan. Prior PLHA grantees included affordable housing developments with supportive services, a homeless shelter, a rapid rehousing program, and a homeless shelter, all serving San Mateo residents.

The City has just completed the initial five-year cycle and will begin the planning process for the next Five-Year Plan in the coming months, followed by the application for Year 1 funds. The formula allocation for Year 1 is $239,986, with annual funding of approximately $240,000 anticipated in the upcoming years.

CDBG (Fund 215) - $638,000 (remaining of $753,586 entitlement for FY25-26) The Community Development Block Grant (CDBG) Program is a federal grant from the U.S. Department of Housing and Urban Development (HUD) that provides flexible funding for community development projects and programs to assist lower- income neighborhoods and households. San Mateo has participated in this program since 1977. The fund consists primarily of an annual entitlement grant, though CDBG also generates program income from loan repayments.

The City draws down its annual entitlement plus any prior-year unexpended funds on a reimbursement basis from HUD.

The current balance shown above reflects the remaining funds from the 25-26 program year, plus a small amount of prior- year funds. The balance is relatively large due to the City receiving its 25-26 entitlement funds at the end of the program year, as the City was delayed in executing its grant agreement with HUD for the funds until June 2026. The entitlement amount for the 26-27 program year is $802,758.

HOME (Fund 210) - $601,000
The HOME Investment Partnership (HOME) Program is a federal grant used to support rental and homeownership housing opportunities for households up to 60-80% of the AMI. The City received an annual HOME grant from 1994 to 2016. The fund now includes program income from repayments on loans funded with HOME funds in the past. The City has been part of the San Mateo County HOME Consortium since 2016 and therefore does not receive a direct allocation from HUD; however, it does receive a small annual allocation for administration from San Mateo County ($11,000-12,000) to offset staffing costs associating with monitoring HOME-regulated projects.

Housing Funding Strategy Recommendations
Over the last five years, housing-related services have accounted for roughly one quarter of all Housing Division annual expenditures. The majority of City-restricted housing funds are intended for affordable housing production and preservation — expenditures that are driven by the affordable housing development pipeline rather than a fixed schedule.

To see how the City distributed its funds in FY 25-26 organized by funding category, refer to the chart in Attachment 1.

Housing Division expenditures in the coming years will be shaped by the City’s Housing Element commitments, major grant opportunities, and community feedback. To guide how this strategy takes shape and how funds are expended, staff is seeking City Council direction on next steps related to MTC TOC Policy compliance, applying for a Prohousing Designation, and PLHA priorities, as any other specific activities will require City investment beyond those in the Housing Element.

MTC TOC Policy
As noted above, staff is currently reviewing City housing programs and policies against the requirements of the MTC TOC Policy to identify any “gaps” in the program requirements to achieve full compliance. As outlined in the MTC Administrative Guidelines for TOC Communities Policy, jurisdictions are required to have, or adopt affordable housing policies in the Production, Preservation, and Protection categories and meet a minimum funding threshold for each category to gain sufficient points in the scoring system to be eligible for the TOC Policy Incentive Program. Currently, the City does not meet the threshold for all housing categories. Staff is seeking direction from City Council to adjust funding in the Preservation and Protection categories to achieve compliance with the affordable housing component of MTC TOC Policy. This is discussed in greater detail below.

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Prohousing Designation Program
The Prohousing Designation Program is a competitive program for jurisdictions that go “above and beyond” to promote the production of housing. The application consists of a rigorous review of City policies and programs to demonstrate compliance with a menu of policies across four broad categories. The designation is valid for three years and benefits jurisdictions by prioritizing them for various types of state funding, including the Prohousing Incentive Program (PIP). To achieve this designation, the City would have to augment existing policies and create a new program, which is discussed in more detail below.

Staff is seeking City Council direction to apply for the Prohousing Designation by the end of 2026 so that the City can compete for PIP funds in the next cycle (Q1 of 2027). Prior to submitting the application, staff would return to City Council with other items required to achieve the designation.

PLHA Five-Year Plan
As noted above, HCD has released a Notice of Funding Availability (NOFA) for the second five-year cycle. An award amount of $239,986 is estimated for the first year of the new five-year cycle. HCD requires applicant jurisdictions to submit a Five- Year Plan for PLHA expenditures before applying for funds annually. Eligible uses for this fund are divided into three main activity areas: rental, affordable owner-occupied workforce housing, and homelessness assistance.

Staff is seeking initial direction on how to allocate these funds and to commence the Five-Year Plan process this fall. In the previous cycle, the City mainly funded services under the homelessness assistance activity (shelter operations, rental assistance, and case management). PLHA funds may again be utilized for homelessness assistance. A portion of the funds may also be used to support an ADU Loan Program through the ADU Resource Center. This would further Housing Element policies H 3.1 (Prevent Homelessness) and H 5.1.3 (ADU Loan Program).

Recommendations for Housing Division Funding Strategy
The following funding recommendations fall broadly under the “3Ps” - Production, Preservation, and Protection. The funding recommendations and potential sources below are meant to serve as guideposts for the City Council in providing direction to staff. Some of these recommendations incorporate the requirements of MTC TOC Policy, Prohousing Designation, and PLHA, and are subject to change based on City Council direction. Funding amounts are approximate.

PRODUCTION - $10.68M total

1. Housing Fund to Support Production, Preservation, and Rehab There are a combined $17.69M across Housing Set-Aside, RDA, City Housing, and CLF funds, which is sufficient to support far more than the targeted 260 affordable housing units at $100,000 per unit (average) cited in the Housing Element.

However, to meet the requirements of a Housing Trust Fund for a Prohousing Designation, per the Prohousing Designation Guidelines, a jurisdiction must go beyond having funds “on deposit” in their respective funds by creating a local “housing trust fund” and demonstrate that it will “regularly and significantly” contribute to that fund for affordable housing. The City could meet this by setting aside a combination of Housing Set-Aside, RDA, City Housing, or CLF funds for the purpose of funding projects. Projects could be awarded via a Notice of Funding Availability (NOFA), whereby developers are invited to submit applications by a set deadline and all applications are considered on a competitive basis, or an ongoing “over-the counter” program in which funds are awarded to eligible projects on a first-come, first-serve basis. In either case, the City must commit to replenishing this account at “regular intervals,”i.e., annually.

If the City Council directs staff to pursue the Prohousing Designation, staff recommends establishing a dedicated fund with an initial amount of $5M to align with the Prohousing Designation. This will also serve to encourage developers to move projects forward in San Mateo and meet Housing Element Policy H 2.1 (Utilize Public Funding and Properties for New Affordable Housing). Taking this action creates more transparency and signals the City’s capacity and intent to fund projects of various types. Production, preservation, and rehab activities are all eligible uses under the funds named above.

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As a first step, City Council may appropriate funds into a new account via resolution at a future City Council meeting. Staff can then develop key program parameters for developers to apply for funds on a rolling basis. The recommended amount ($5M) is based on potential requests for funding that staff anticipates in the coming years and could support two to three projects, depending on the size. For each project that receives Housing restricted funds, staff would work to leverage the City’s contribution with the state grant sources noted in this report and potentially with federal sources, thus multiplying the impact of the City’s investment.

2. Housing Fund to Support Affordable Housing Development on City-Owned Land Housing Element Policy H 1.2 requires the City to assess feasibility of developing the City-owned parcel at 4142 S.

El Camino Real with affordable housing, with an emphasis on extremely- and very low-income units. This site has limited potential alone, but with assemblage of the adjacent two parcels, there could be enhanced potential for a larger, mixed-use, mixed-income development with development partners. Realizing a project at this scale would likely require a sizeable City contribution, thus feasibility assessment is necessary before more specifics can be established.

Additionally, jurisdictions can claim credit under both MTC TOC Policy and the Prohousing Designation for demonstrating a commitment to utilizing publicly owned land for affordable housing beyond what is required by the Surplus Land Act (25% of units affordable to lower-income households). For these reasons, staff recommends setting aside $5M in a combination of RDA, CLF, and Housing Set-Aside funds for acquisition and development on City-owned parcels. Staff is also researching ways to leverage City funds for a project of this size, such as through the Prohousing Incentive Program or possibly through federal funding sources.

3.ADU Loan Program
Housing Element Policy H 5.1.3 – Explore Potential to Create an ADU Loan Program commits the City to explore the potential for a city ADU loan program, or, if not feasible, to work with the 21 Elements Planning Collaborative to design a regional loan forgiveness program. Staff has been participating in the ADU Implementation Group led by the ADU Resource Center of San Mateo County, which has developed an ADU loan program concept. The program aims to support homeowners in building an ADU on their property by lowering the financial and technical barriers to ADU construction.

The program would provide low-interest loans to low- to moderate-income homeowners (<120% AMI) seeking to build an ADU. To be effective, it is anticipated that a loan of $100,000 would be provided to each approved homeowner seeking to construct an ADU, plus $10,000 in technical assistance. If one loan per year is provided to a San Mateo homeowner, this would be a commitment of up to $550,000 over five years. The ADU Resource Center would manage the administration, with HEART of San Mateo County overseeing loan origination and monitoring and participating jurisdictions sharing the administrative cost of about $80,000 annually. Assuming that at least three jurisdictions participate, San Mateo’s share would cost approximately $26,000 annually (approximately $130,000 over five years). Thus, the total cost of this program would be up to $680,000 over five years. It is anticipated that interested jurisdictions will execute an MOU with HEART in the fall, with program launch targeted for summer 2027. A potential partial source of funding for this program is Housing Set-Aside or RDA. Staff are researching whether PLHA may be used for this purpose.

PRESERVATION - $2M total

1. Preservation of Affordable Housing with Expiring Restrictions Housing Element Policy H 2.2 requires the City to try to preserve units with an expiring affordability restriction. At Bridgepointe Condominiums, the affordability restrictions for 59 affordable units (24 of which are very low-income units) are set to expire in December 2027. The Belmont Building includes six very low-income units, for which the restriction expires in 2032.

This summer, City staff met with the Bridgepointe ownership team to discuss future plans for the complex and to begin preliminary negotiations to extend the units’ affordability restrictions. As of the date of this report, the

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ownership is undecided about plans for the building but did inquire about potential City funding to support interior renovations on the units in exchange for extending the affordability restrictions.

Staff recommends setting aside Housing funds from the City Housing Fund or RDA for the Bridgepointe Condominiums and the Belmont Building, the two developments with expiring affordability restrictions during and immediately following this Housing Element cycle. If the City and the ownership of these two developments can reach an agreement to extend the affordability terms in exchange for a City loan, staff would return to City Council with loan terms and an appropriation recommendation. A preliminary estimate for Bridgepointe is $1.5M. Since the Belmont Building restrictions do not expire until 2032, staff does not yet have an estimate for this preservation effort, and will return to Council for direction at a future date when more information is available.

2. Preservation Support for Below Market-Rate Homeowners The City’s primary form of homeowner assistance is through repair and rehab programs that allow lower-income homeowners to remain in their homes. The City partners with Rebuilding Together Peninsula for two CDBG-funded home repair programs, Safe and Home and National Rebuilding Day, and the CalHome Home Rehab Loan program.

Many grant and loan recipients are single-family homeowners, though condominium homeowners have also received assistance for interior improvements like accessibility and safety upgrades to kitchens and bathrooms.

There is not currently a source of funding to assist lower-income condominium homeowners in communities in need of common area or exterior maintenance and repair. With Senate Bill 326 (SB 326, sometimes referred to as the “balcony bill”) taking effect and HOAs being held responsible for inspecting and repairing exterior elevated structures such as balconies, along with increased scrutiny from lenders, HOAs have struggled to build sufficient reserves for repairs. High HOA dues that exceed a BMR homeowner’s ability to pay is a common occurrence, as the City has seen with one of its First-Time Homebuyer complexes, Gateway Commons (211 and 221 S. Fremont St).

To address this issue, the City could develop a loan or grant program for BMR homeowners to assist with HOA dues or assessments. Staff is seeking City Council direction on whether to research and propose a program targeting BMR homeowners. If the City Council wishes to pursue this program, staff recommends setting aside $500,000 for five years using the most flexible Housing funding sources, such as City Housing Fund or Housing Set- Aside.

PROTECTION - $1.625M total

1. Homelessness Prevention/Housing Stability - Emergency Rental Assistance Program The City began strategically using RDA funds for homelessness prevention and response in FY25-26 by budgeting for the Police Department Homeless Outreach Team (HOT) and creating the Emergency Rental Assistance Program (ERAP). The ERAP was established as an anti-displacement policy in response to the fact that most evictions in San Mateo County are due to nonpayment of rent. This program, administered by Samaritan House, expended all funds for FY 24-25 ($168,000), and City Council directed staff to increase the budget to $220,000 for FY 26-27. Staff is seeking direction to maintain this funding level in future years. Staff will continue to work closely with Samaritan House to monitor program effectiveness and provide annual report-backs on utilization of the fund and any patterns that emerge from the data collected. The first-year annual report on the Program will be published this fall. Staff is seeking confirmation from Council to plan for this program being funded over the coming five-year period.

2. Homelessness Prevention/Housing Stability - Legal Services As noted above, the City has received significant feedback on the need for legal services from its community outreach on anti-displacement, including during the August 19th Community Relations Commission meeting. Staff has found that apparent underfunding of “upstream,” or preventative housing services such as tenant legal education and access to legal services is a countywide issue and that neighboring jurisdictions are similarly considering how to address the apparent gap in these services.

In preparation for this meeting, staff met with City-funded organizations Project Sentinel and Legal Aid for input on

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how funding trends in recent years have affected their ability to provide these services, and how additional funding from San Mateo and other jurisdictions throughout the County could be used to serve more lower-income tenants in San Mateo. Overall, both providers indicated that staff capacity has decreased in recent years, and that an additional staff member, such as one additional full-time attorney or one full-time case manager, would improve service levels.

For TOC Policy compliance, MTC allows for policies to be combined into one to meet the funding threshold ($300,000 over four years). Within the Protection category, the City meets the programmatic and dollar threshold for the Rental Assistance Program policy. By combining two existing programs that qualify as Legal Assistance and Fair Housing Enforcement at their current funding levels, the City still falls short of the minimum funding threshold by approximately $65,000 annually.

Given these findings and the parameters of the MTC TOC Policy, staff recommends increasing legal services funding by $75,000 annually for the next four years ($300,000 total). Legal services are not an eligible use of funds under PLHA or other available state programs, so staff recommends using the Housing Set-Aside Fund, which is flexible funding source and would allow for spending on this type of activity for the first year. Staff will assess if other funding sources could be used for this activity in coming years and will continue to seek outside sources to leverage this funding.

Staff also recommends working with other jurisdictions in San Mateo County, including the County itself, to explore a multijurisdictional, combined fund for legal services. This model is in use in other counties in California and could be a more efficient means of increasing legal services access in the County than funding separate programs in individual cities.

3. Homelessness Response- SMPD Homeless Outreach Team
The Housing Division has utilized RDA funds to support the Police Department’s Homeless Outreach Team (HOT) since FY 25-26. Identifying this new source has allowed the City to reduce its reliance on the General Fund while sustaining funding for two permanent members of the HOT. HOT is a highly successful model for homelessness response, and incorporating the team into the Housing Division budget has strengthened collaboration between the Police Department and Housing staff in serving the community. Staff recommends continuing to use the annual $500,000 RDA set-aside for homelessness prevention and response to support HOT and is seeking City Council direction on whether to maintain or increase HOT funding levels in subsequent fiscal years. HOT is currently funded at $250,000 annually, and the estimated total expenditures under Protection assume that funding level remains constant over the five-year planning period.

City Council Questions
Given the above recommendations, staff is seeking direction from the City Council on the following questions:

1. Does the City Council support applying for the Prohousing Designation Program?

2. Does the City Council support pursuing full compliance with the MTC TOC Policy?

3. Does the City Council support setting aside approximately $10.68M for Production, $2M for Preservation, and $1.625M for Protection to support the activities described in this report? Next Steps
Staff will implement City Council direction on each of the above areas, many of which will take the form of future City Council items. Specifically, if directed, staff would take the following steps:
•Continue to pursue full compliance with the MTC TOC Policy affordable housing policies, with the target to take all necessary actions and submit documentation to MTC by July 2027. •Apply for the Prohousing Designation, which requires an extensive public input process, including a 30-day public comment period for review of the full application prior to submittal to HCD. Staff has developed a preliminary schedule for this application that includes initial consultation with HCD, review by the Planning Commission and Community Relations Commission of the draft application during the public comment period and bringing the application back to City Council for adoption later this fall.

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•Launch Five-Year Plan process for PLHA. Staff anticipates holding a study session with the Community Relations Commission to kick off the Five-Year Plan process and then returning to City Council for further action this fall. •Return with appropriation resolution for an over-the-counter Housing Fund program. Staff anticipates returning to City Council at the next meeting with the outline of this program and an appropriation resolution in time to submit for the Prohousing Designation, should City Council direct staff to apply. •Return in the fall with the draft Memorandum of Understanding (MOU) with the ADU Resource Center for the creation of the Affordable ADU Loan Program, which will include the parameters of the program, responsibilities of the City and other parties, and funding amounts, for City Council approval. Please note that this MOU is non- binding—there is no requirement for the City to make any financial contribution-- and would be followed by a formal funding agreement.
•Return with an appropriation resolution for an acquisition/development fund and a preservation fund . •Return with an appropriation resolution and, if applicable, program parameters for any other new programs cited above (e.g., BMR Homeowner Preservation Support, Legal Services Fund), if the City Council directs staff accordingly.

BUDGET IMPACT:

This is a study session and no formal actions are being taken by the City Council, so there is no impact to the General Fund.

ENVIRONMENTAL DETERMINATION:

This study session 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.) NOTICE PROVIDED:

All meeting noticing requirements were met. Information about this meeting was provided via multiple City communications channels. A public notice announcing this meeting was published on the San Mateo Daily Journal on August 14, 2026. The meeting was also announced on City of San Mateo’s eNews and the City’s News and Announcements page located on the homepage of the City’s website. Social media (Facebook and Instagram) were utilized to invite residents to the September 8 City Council Study Session. Notices were sent out through the City’s Housing Policies & Programs email list and the Community Relations Commission email list.

STRATEGIC PLAN ALIGNMENT:

This housing fund study session supports implementation of the City’s Housing initiative.

ATTACHMENTS
Att 1 – Housing Division (Non-Personnel) Expenditures in FY 25-26 Att 2 – Housing Fund Summaries

STAFF CONTACT
Rachel Horst, Housing Manager
[email protected]
(650) 522-7223

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Attachment 1
Housing Division Expenditures by Category in FY25-26
Program  RDA
(F255)
PLHA
(F280)
CDBG
(F215)
CLF
(F270)
Homelessness Prevention/Housing Stability
Emergency Rental Assistance Program (admin by Samaritan House) $168,000
HIP Housing Homesharing Program  $57,611
Legal Aid Society of SMC “Homesavers” Program $16,400
Project Sentinel Fair Housing Program     $25,000
Samaritan House CORE Services      $16,400
TOTAL: $283,411
Homelessness Response
LifeMoves Rapid Rehousing    $179,273
San Mateo PD Homeless Outreach Team  $190,000
Samaritan House Safe Harbor Shelter    $53,342
LifeMoves First Step for Families Shelter      $16,400
TOTAL: $439,015
Affordable Housing Production
Bespoke Project  $2,000,000      $1,000,000
TOTAL: $3,000,000
Homeowner Assistance
Minor Home Repair      $107,000
TOTAL: $107,000

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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 Payments $ 11 $ 79 $
15 $ 15
Grants 40 13 13 13
Total Revenues 51$ 92$ 28$ 28$
Expenditures
Personnel 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.
74 Attachment 2 - Housing Fund Summaries from Adopted
FY2026-27 Budget

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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
Intergovernmental Contributions $
227 $ 766 $ 803 $ 732 Loan Payments 16 8 8 8 Total Revenues 243$ 774$ 811$ 740$ Expenditures
Personnel 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.
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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 of 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 collected 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. F unds are set aside to assist first-time homebuyers with purchasing below market-rate housing units. Additionally, funds will b e used to pay for the City membership fee for The Housing Endowment and Regional Trust of San Mateo County (HEART), the countywide housing trust fund, and for revisions to the City's BMR documents.
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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 these funds
to support housing projects that
assist households whose income ranges up
to 80% of median income. The fund also consists of
administrative 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).
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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 o n 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 who 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 a
ccumulated 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 Proj ects Fund, and this pl an will be updated accordingly as needed.
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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 o
n 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 program, supportive services at
the Montara
affordable housing development, and a rapid rehousing program. 85 379 of 554

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Housing Fund –
Informational Update
Rachel Horst
Housing & Neighborhood Services Manager
Van Diggans
Housing Specialist II

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Objectives

1. Provide background on Housing Division activities over next five years and resources needed to support them

2. Obtain direction from City Council on future grant opportunities and major funding priorities (five-year housing fund strategy)

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Housing Funding Policy Framework
2023-2031 Housing Element
• Policy H1.2: Utilize Public Funding and Properties for New Affordable Housing
• Policy H2.2: Support Retention of Existing Lower Income Units • Policy H3.1: Prevent Homelessness
• Policy H2.3: Increase Energy and Water Efficiency in Existing Units
• Policy H5.1.3: Explore the potential to implement a loan program for ADU construction

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Housing Funding Policy Framework
Regional and State Housing and Grant Programs
• Metropolitan Transportation Commission's (MTC) Transit-Oriented Communities (TOC) Policy
•Permanent Local Housing Allocation (PLHA)
• Prohousing Designation Program

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Housing Funding Policy Framework
Community Feedback on Anti-Displacement and Housing Stability • Overall emphasis on funding for:
• Emergency rental assistance
• Legal aid
• Tenant-landlord education
• August 19, 2026 Community Relations Commission feedback:
• Increased funding for affordable housing – especially for lower-income seniors • Case management
• Home repair programs or weatherization/energy efficiency upgrades for low-income seniors

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How Does the City Invest Its Housing Funds?

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2025-26 Housing Division Expenditures
Homelessness Prevention/Housing Stability &
Homelessness Response
• Low- and Moderate-Income Housing Asset Fund
• Community Development Block Grant
• Permanent Local Housing Allocation
Affordable Housing Production
• Low- and Moderate-Income Housing Asset Fund
• Commercial Linkage Fee
Homeowner Assistance
• Community Development Block Grant
7%
11%
78%
3%
2025-2026 Expenditures
Homelessness Prevention/Housing Stability
Homelessness Response
Affordable Housing Production
Homeowner Assistance

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Housing Division Restricted Funds
Fund Balance (current)
Low- and Moderate-Income Housing Asset Fund (“RDA”)
(F255) $5,381,000
Commercial Linkage Fee (F270) $3,795,000
City Housing Fund (F250) $1,563,000
Housing Set Aside (F130) $6,470,000
Permanent Local Housing Allocation (F280) $48,000 ($293,103)* Community Development Block Grant (F215) $638,000 ($753,586)* HOME (F210) $601,000
*Balance remaining from annual
entitlement/award amount

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Permanent Local Housing Allocation (PLHA)
• State formula grant for activities in 3 categories: rental, affordable owner-occupied workforce housing, homelessness assistance • Five-Year Plan required prior to application for Year 1 PLHA funds:
$239,986
• Funds in first cycle of PLHA supported rapid rehousing, homelessness response, homesharing, case management
• Staff recommendation is to provide broad direction for Five-Year Plan (see subsequent funding recommendations)

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Prohousing Designation Program
• Competitive program administered by HCD for jurisdictions that go “above and beyond” to promote the production of housing • Jurisdictions scored on a range of policies in four categories • HCD prioritizes Prohousing jurisdictions for various state funding opportunities, including Prohousing Incentive Program (PIP) grant •Staff recommendation is to apply and implement policies needed to gain sufficient points for the designation

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MTC Transit-Oriented Communities Incentive
Program
• MTC TOC Policy - standards for density near transit, parking and transportation, commercial stabilization, housing policies • City received $610,000 TOC grant for the Comprehensive Zoning Code Update in 2025 (for partial compliance)
• MTC policy change: no longer required for OBAG funding; now an incentive program

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Housing Division Funding Recommendations

1. Housing “Fund”
• Housing Element Policy H1.2, Prohousing Designation
• Eligible uses: production, preservation, and rehab of affordable units • Combine RDA, Housing Set-Aside, CLF for initial total of $5M

2. Affordable Housing Development on City-Owned Land
• Housing Element Policy H1.2
• Acquisition and development of affordable housing on City-owned properties • Combine RDA, Housing Set-Aside, CLF for total of $5M

3. ADU Loan Program
• Housing Element Policy H5.1.3, Prohousing Designation • Loans for moderate-income homeowners (150% AMI); units restricted to 150% AMI • PLHA, Housing Set-Aside for total of $680,000 over five years

PRODUCTION

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Housing Division Funding Recommendations

1. Preservation of Affordable (BMR) Housing with Expiring Restrictions • Housing Element Policy H2.2
• Eligible use: preservation of Bridgepointe Condominiums, Belmont Building • Combine City Housing Fund and RDA for minimum $1.5M (Belmont Building costs TBD)

2. Preservation Support for BMR Homeowners
• Emerging need among older BMR condominium housing stock • Eligible use: assistance with HOA dues or assessments • City Housing Fund or Housing Set-Aside for total of $500,000

PRESERVATION

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Housing Division Funding Recommendations

1. Homelessness Prevention/Housing Stability – Emergency Rental Assistance Program
• Maintain Emergency Rental Assistance Program at current funding level ($220,000)
• RDA for total of $1.1M over five years

2. Homelessness Prevention/Housing Stability – Legal Services • Community feedback and findings from tenant protections/anti- displacement efforts in 2024-25, MTC TOC
• Increase legal aid by $75,000 annually, or total of $300,000-$375,000 for next four to five years
• Housing Set-Aside for first year; staff will research other sources for subsequent years

PROTECTION

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Housing Division Funding Recommendations

3. Homelessness Response – SMPD Homeless Outreach Team (HOT) • Maintain $250,000 of RDA funding for HOT personnel
• Seek other sources of non-local funding for HOT programming (e.g., motel vouchers), e.g., PLHA
• Total $1.25M in RDA over five years; additional funds TBD if City Council directs

PROTECTION

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City Council Questions

1. Does City Council support applying for the Prohousing Designation Program?

2. Does the City Council support pursuing full compliance with the MTC TOC Policy?

3. Does the City Council support setting aside approximately:

1. $10.68M total for Production*

2. $2M for total Preservation

3. $1.625M total for Protection*
a. Does the City Council support the recommendations for PLHA uses(*)?

4. Does the City Council have any additional input on the proposed programs and/or five-year housing fund strategy?

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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: File ID: 26-11552 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: September 08, 2026
SUBJECT: High-Density Mixed-Use and Multi-Family Districts, and Zoning Code Updates — Ordinance Introduction
RECOMMENDATION:

Introduce an Ordinance to make various amendments to Title 27 “Zoning” of the San Mateo Municipal Code to establish four new high density zoning districts consistent with General Plan 2040 and make minor revisions to various sections to update outdated language and correct inconsistencies.

BACKGROUND:

In 2024, the City Council adopted Strive San Mateo General Plan 2040. This General Plan is a strategic document guiding the City’s long-range growth and development through policy. This plan established updated land use designations that respond to state housing requirements and advanced the City’s goals for sustainable, equitable, and transit-oriented development. While the General Plan provides high-level policy direction and outlines overall development intensity, the City’s zoning regulations serve as the primary implementation mechanism by translating these policies into clear and enforceable development standards. The existing zoning regulations do not fully align with or adequately implement the land use designations and development patterns envisioned by the General Plan. Specifically, the current Zoning Code does not allow for the higher-density residential and mixed-use development envisioned by the General Plan through the establishment of the Mixed-Use Medium II, Mixed-Use High, Residential Medium II and Residential High land use designations which allow for densities of up to 130 units per acre and heights of up to eight stories.

The City is currently undertaking a comprehensive update to Title 27 (Zoning Code) of the San Mateo Municipal Code (SMMC), which establishes zoning regulations for San Mateo. This comprehensive update will revise development standards, definitions, and regulatory provisions to modernize the Zoning Code, improve usability, and ensure consistency with the General Plan and applicable state law. The zoning code update is presently in the early stages of development and community engagement, providing the public with opportunities to provide input on how the Zoning Code is updated and/or maintained. Following this phase, staff will work with the City’s consultant, Placeworks, to draft updated standards and regulations. Additional public outreach will occur when the draft update is published and prior to formal public hearings before the Planning Commission and City Council. Staff anticipates that the Comprehensive Zoning Code Update will be completed by mid-2027.

While the Comprehensive Zoning Code Update (CZCU) is underway, it is necessary to establish new zoning districts to align with the General Plan’s higher density adopted land use designations. The proposed Ordinance will create four new zoning districts intended to implement the General Plan’s land use framework by establishing clear and objective standards for permitted uses, development form, and intensity. The proposed districts (MU3, MU4, R6, and R7) are described in greater detail in the Discussion section of this report. Adoption of these districts will ensure regulatory consistency, improve clarity for applicants and the public, and facilitate development that advances the City’s adopted policy objectives.

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It is important to note that the creation of these districts will not result in the automatic rezoning of any existing parcels, and the rezoning of any properties to these new districts will need to take place through a separate developer or city- initiated process. These rezonings may take place through the CZCU or in advance of this update through the entitlement process for individual projects. Prior to any rezonings, staff and applicants may utilize these standards to better understand development expectations and building form associated with the corresponding General Plan land use designations, and to help ensure that projects are consistent with the General Plan. The proposed zone districts correlate to the General Plan’s land use designations as outlined in the table below.

Proposed Zone District General Plan Designation
R6 High Density Multiple Family Residential Residential Medium II (4-6 stories, 51-99 units/acre) R7 High Density Multiple Family Residential Residential High (5-8 stories, 100-130 units/acre) MU3 Medium Density Mixed-Use Mixed-Use Medium II (4-6 stories, 51-99 units/acre) MU4 High Density Mixed-Use Mixed-Use High (5-8 stories, 100-130 units/acre) In addition to the creation of four new zoning districts, the proposed Ordinance will also amend the landscape requirements within the code to exempt 100% affordable developments from required landscaping in-lieu fees as well as propose minor changes to a number of districts throughout the Zoning Code. These minor changes are intended to resolve inconsistencies, remove antiquated language and increase clarity. Detailed descriptions of all of the proposed changes are outlined below.

On June 23, 2026, the Planning Commission held a public hearing to consider the proposed Ordinance. There were two public comments submitted in writing prior to the meeting, which are further described in the public notice and comments section of this report, and one public speaker provided verbal comments at the meeting. The speaker at the meeting identified concerns with the proposed open space ratios within the new zoning districts, proposed buffers from low- density residential, and commercial uses proposed within mixed-use districts. Following the staff presentation and public comments, the Planning Commission engaged in in-depth discussion on multiple aspects of the proposed amendments, including the proposed open space standards, landscaping requirements, floor area ratio (FAR), and proposed building heights. Additional information regarding the discussion on FAR standards is provided in a subsequent section of this agenda report.

Following deliberation and discussion with City Staff, the Planning Commission voted to recommend approval of the proposed Ordinance with no modifications. However, the Commission requested that additional analysis and background information on the development standards in the high-density districts, including building height, FAR and open space, be provided before the draft Zoning Code Update is published. Staff will be bringing these topics back for further input at future study sessions with the Planning Commission and City Council as part of the CZCU process.

DISCUSSION:

Proposed Amendments
The proposed amendments are included in the Proposed Ordinance (Attachment 1). A version with tracked changes to show where edits have been proposed to the existing Code text is included as Attachment 2. A complete summary of each of the proposed changes is discussed below.

New Zone Districts

1. R6 District – High Density Multiple Family Residential The proposed R6 High Density Multiple Family Residential District is intended to implement the Residential Medium II land use designation established by the General Plan. This district is designed to accommodate higher- density multi-family housing in appropriate locations, particularly along major corridors and near mixed-use, employment and commercial areas. Permitted uses within this district will include family day care homes, multi- family dwellings, one-family row dwellings and residential care homes. In order to facilitate higher-density development and meet housing goals, detached single-family dwellings will not be permitted in this district.

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The development standards proposed for the R6 District, summarized in the table below, have been drafted to reduce barriers to multi-family housing while maintaining appropriate site design and livability standards. These regulations are intended to promote compact development, support a range of multi-family housing types, and provide flexibility for developers to respond to site-specific constraints. By allowing increased development intensity, the R6 District, along with the other new districts outlined below, will play a key role in helping the City meet its state-mandated housing requirements and Regional Housing Needs Allocation (RHNA) obligations.

Development Standard R6 Proposed Requirement
Maximum Density 99 dwelling units per acre
Floor Area Ratio 3.5
Maximum Height 6 Stories / 75 feet
Front Yard Setback None Required
Side Yard Setback None Required
Rear Yard Setback Five Feet
Buffers Adjacent to R1 or R2 Districts Side: 10 ft
Rear: 15 ft
In addition to the standards listed above, staff is proposing to establish on-site open space standards to require that higher-density residential projects provide adequate outdoor amenities for residents. These requirements are intended to balance increased density with quality-of-life considerations, recognizing the importance of usable open space in multi-family developments. Projects within the R6 District would be required to provide either a minimum of 50 square feet of private usable open space per dwelling unit or a minimum of 75 square feet of common usable open space per unit.

To provide additional design flexibility, applicants may satisfy the open space requirement through a combination of private and common usable open space. In such cases, a minimum of 30 square feet of private usable open space per unit is required to promote accessibility and ensure that all residents have some direct access to outdoor space. The remaining open space obligation can be met through common usable open space equal to at least 150 percent of the difference between the private open space requirement and the amount of private open space provided. This approach incentivizes the provision of shared amenities such as courtyards, rooftop decks, and landscaped gathering areas, while still maintaining a baseline level of private open space for individual units.

For example, a development that proposes 30 square feet of private usable open space per unit would be required to provide an additional 30 square feet of common usable open space per unit to meet the overall open space requirement. This flexible framework allows a variety of project designs while ensuring that residents of higher- density developments have access to meaningful outdoor space. As currently proposed, these exact open space requirements will also be reflected across the R7, MU3 and MU4 districts.

2. R7 District – High Density Multiple Family Residential The proposed R7 High Density Multiple Family Residential District is intended to implement the Residential High land use designation established by the General Plan. The R7 District is designed to accommodate the City’s highest-density residential development in locations with the greatest access to transit, services, employment centers, and commercial uses. This district supports compact, urban-scale development and plays a critical role in maximizing housing capacity in areas best suited to absorb increased residential intensity.

The development standards proposed for the R7 District, summarized in the table below, are intended to facilitate higher density multi-family development while maintaining appropriate design and livability standards. Compared to lower-density residential districts, the R7 District allows increased intensity, height, and unit yield, reflecting its role as a primary tool for achieving the City’s long-term housing and infill development objectives. These standards are designed to provide flexibility for development on constrained urban sites, reduce regulatory barriers, and support the production of a diverse range of housing types, including apartments and condominiums. Similar to

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the proposed R6 district, single-family residential uses would not be permitted within this proposed district.

Development Standard R7 Proposed Requirement
Maximum Density 130 dwelling units per acre
Floor Area Ratio 4.0
Maximum Height Eight Stories / 100 feet
Front Yard Setback None Required
Side Yard Setback None Required
Rear Yard Setback Five Feet
Buffers Adjacent to R1 or R2 Districts Side: 10 ft
Rear: 15 ft

3. MU3 District – Medium Density Mixed-Use
The MU3 (Medium Density Mixed-Use) District, implementing the General Plan Mixed-Use Medium II designation, will provide opportunities for medium-density mixed-use development that supports a vibrant, walkable, and economically diverse environment. The district allows a combination of commercial, office, and/or residential uses within the same building or site, as well as stand-alone uses. The MU3 District is intended to primarily be applied where a mix of uses can be supported by existing infrastructure, transit and services.

The district permits a broad range of neighborhood-serving and regional-serving commercial uses, including but not limited to retail shops, restaurants, personal services, offices, medical and dental clinics, hotels, and civic uses.

Residential development in the MU3 District is permitted through multi-family units with a minimum density requirement. The standards within the MU3 District, as shown below, are designed to encourage active ground- floor uses, support housing production, and promote compatibility with surrounding development through objective development standards.

Development Standard MU3 Proposed Requirement
Maximum Density (Residential) 99 dwelling units per acre Minimum Density (Mixed-Use with Residential)
50 units per acre when within ½-mile of a Caltrain Station 30 units per acre when beyond ½-mile of a Caltrain Station Per Section 27.02.230.

Floor Area Ratio 4.0
Maximum Height Nonresidential: Four Stories (50 Feet)
Residential, Mixed-Use with residential: Six Stories (75 Feet) Front Yard Setback None Required
Side Yard Setback None Required
Rear Yard Setback Five Feet
Buffers Adjacent to R1 or R2 Districts Side: 10 ft
Rear: 15 ft

4. MU4 – High Density Mixed-Use
The Mixed-Use High General Plan land use designation will be implemented through the MU4 (High Density Mixed-Use) District, which will allow higher-density mixed-use development. The MU4 District anticipates mixed- use buildings that integrate commercial, office, and/or residential uses within the same site or structure, as well as stand-alone commercial, office, or residential development. The district permits the same range of commercial, office, institutional, and residential uses allowed in the MU3 District, but at increased intensity to support a more concentrated mix of uses. The MU4 District is intended to accommodate the increased building height, floor area, and residential density while maintaining compatibility with surrounding development. The proposed standards of the MU4 district can be seen in the table below.

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Development Standard MU4 Proposed Requirement
Maximum Density (Residential) 130 dwelling units per acre Minimum Density (Mixed- Use with Residential)
50 units per acre when within ½-mile of a Caltrain Station 50 units per acre when beyond ½-mile of a Caltrain Station Per Section 27.02.230.

Floor Area Ratio 4.5
Maximum Height Nonresidential: Five Stories (65 Feet)
Residential, Mixed-Use with residential: Eight Stories (100 Feet) Front Yard Setback None Required
Side Yard Setback None Required
Rear Yard Setback Five Feet
Buffers Adjacent to R1 or R2 Districts Side: 10 ft
Rear: 15 ft
Floor Area Ratio (FAR)
To be consistent with the other residential districts in the current Zoning Code, staff is recommending the inclusion of a FAR maximum for the R6 and R7 Zoning Districts. The inclusion of a FAR would provide an additional measure to regulate overall building size alongside the proposed height and density standards, which is consistent with the current approach in the Zoning Code.

This item is identified as a discussion point for the City Council because a maximum FAR for the R6 and R7 districts was not recommended by the Planning Commission. During its consideration of the proposed districts, the Planning Commission provided a recommendation that FAR should not apply to the residential portions of buildings within the mixed-use districts, expressing a preference for regulating residential development only through height, setbacks and density standards. Given this discussion and the Commission’s recommendation, staff is highlighting this topic for City Council awareness, and to confirm whether or not a maximum FAR should be established for the R6 and R7 Districts and applied to residential floor area within a mixed-use development.

As noted above, these new districts are considered interim standards intended to support implementation of the highest density land use designation in General Plan 2040 until the Comprehensive Zoning Code Update (CZCU) is adopted. The standards in these districts will be reviewed, and updated as necessary, as part of the CZCU. And one of the specific regulations that will be assessed as part of the CZCU is FAR (how it is calculated and to what it is applied), so these districts (R6, R7, MU3 and MU4) would be updated accordingly, based on where the new FAR requirements land. Thus, for consistency with the rest of the existing Zoning Code, staff recommends setting a FAR limit for the four new districts that includes all floor area as the interim standard to be consistent with the current Zoning Code. Then, as part of the CZCU, the long-term plan for how FAR should be applied citywide, in all districts, will be assessed and determined.

Height Limit Methodology
The proposed height limits in the four new districts are based on a formula that used 14 feet for the first floor and 12 feet per floor for each upper story level. Since building height is a key policy topic, the methodology for developing numeric height limits in the Zoning Code will be further evaluated and discussed as part of the CZCU, with final height limits being adopted with the Updated Zoning Code. Thus, these proposed height limits are considered interim standards.

With regards to the mixed-use districts (MU3 and MU4), consistent with the story range specified in the General Plan, two height limits are proposed – one for residential/mixed-use residential and one for non-residential development. For residential projects, the height limit aligns with the maximum story limit specified in the General Plan, which is consistent Housing Element commitments. For non-residential projects (commercial/office), the height limit aligns with the lower end of the General Plan’s story limit range. This approach is consistent with the General Plan’s goal to incentivize housing

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production as part of mixed-use developments.

With regard to the residential districts (R6 and R7), the height limits are the same as the maximum story limits specified in the General Plan, again in order to be consistent with the Housing Element commitments.

Update to Landscaping Requirements
Chapter 27.71 of the San Mateo Municipal Code establishes general landscaping requirements for development projects that require a planning application. These standards are intended to ensure high-quality site design and compatibility with surrounding development and include requirements for screening of parking areas, landscape buffers between residential uses and adjacent dissimilar land uses, and the installation of street trees along public frontages. In addition, the chapter quantifies the value of all landscaping and trees that are removed (landscape unit or LU value) and assesses an in-lieu fee that a project is required to pay. These detailed landscape plan submittal requirements, performance standards and in-lieu fee assessments contribute to the overall complexity, cost, and review time of development proposals.

Under the existing Zoning Code, single-family residential development is exempt from these minimum landscaping requirements and is instead regulated by separate residential development standards. The proposed Ordinance would amend Chapter 27.71 to extend a similar exemption to 100 percent affordable housing developments. While these projects would no longer be subject to the general landscaping requirements of Chapter 27.71, applicable tree preservation and new landscaping requirements would remain in effect pursuant to other sections of the Code.

The intent of this update is to remove regulatory barriers that can affect the feasibility of affordable housing projects by reducing design constraints, application materials, and review requirements that add cost and time to project delivery. By streamlining landscaping requirements for 100 percent affordable housing developments, the proposed Ordinance supports implementation of the City’s Housing Element and Regional Housing Needs Allocation (RHNA) obligations. A full review of Chapter 27.71 will happen as part of the CZCU, but this amendment was prioritized to ensure that any near-term affordable housing projects are not subject to these requirements.

Other Zoning Code Revisions

1. SPAR Requirement
Chapter 27.08 of the Zoning Code currently states that all projects over 55 feet in height shall require review by City Council. However, following the passage of Measure T, which established updated building height thresholds throughout the city, the Zoning Code was amended to specify that only buildings that exceed the height limit in the General Plan require City Council approval. Thus, this language is now inconsistent with other more recently amended sections of the Zoning Code, so it is proposed to be removed to bring it into alignment with the updated review threshold.

2. Community Care Facility Definition and Site Plan and Architectural Review (SPAR) Procedures In April 2025, the City adopted Ordinance No. 2025-03 to clarify the City Council review process for projects requiring Site Plan and Architectural Review (SPAR). As adopted, the updated SPAR-related provisions were inadvertently placed within the Zoning Code’s definitions section, resulting in the removal of the existing definition for “community care facility.” The proposed Ordinance would correct this error by reinstating “community care facility” as a defined use within the definitions section, using the same language as before. In addition, the SPAR procedures in Chapter 27.08 (Rules of Procedure) would be updated to align with the City’s current City Council hearing process.

3. Residential References within Non-Residential Districts The City of San Mateo currently permits residential development in several non-residential zoning districts, including the Commercial (C) and Executive (E) districts. To ensure that residential projects in these districts comply with applicable City requirements, the Zoning Code includes cross-references to the appropriate residential development standards. The proposed updates clarify and expand these references to ensure that all applicable residential standards are clearly identified and consistently applied.

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Further, within the C1 (Neighborhood Commercial) District, residential units are a permitted use above the ground floor to support the City’s housing production goals while also supporting the continued presence of ground floor commercial space in the City’s commercial districts. With a need to maintain commercial floor area around the City to support local businesses and neighborhood serving commercial uses as the City grows and redevelops, it is recommended that the permitted uses in the C2 and C3 (Regional Commercial) Districts be updated to specify that residential units are a permitted use above the ground floor, consistent with the C1 District.

4. Permitted Uses within C4 Zone District, CBD Zone District and E2 Zone District In April 2025, the City adopted Ordinance No. 2025-03 to clarify language within the C4 (Service Commercial), CBD (Central Business District), and E2 (Executive Office) zoning districts. During that update, several uses that were intended to remain as permitted by right or allowed through a special use permit were inadvertently removed.

The proposed code amendment restores these previously permitted uses. No new uses beyond those previously discussed in the SMMC are proposed.

5. Retail FAR Standards
The Zoning Code’s definitions section currently describes how floor area ratio (FAR) is calculated for development projects within the City. As written, the code requires that ground-floor retail spaces with ceiling heights exceeding 18 feet be counted twice for the purposes of floor area calculations. This provision may discourage applicants from incorporating contemporary design elements, such as more open commercial spaces and higher ceiling heights.

The proposed amendment would remove this standard to allow for more flexibility in the design of ground floor uses and ensure that Class A commercial space with taller ceilings can be utilized without being limited by FAR limits.

6. In-Person Sale Requirements within Required Retail Frontage Zone The City of San Mateo has established required retail frontage areas in two key locations: Downtown and the West 25th Avenue commercial corridor. Within these areas, specific requirements govern permitted uses to ensure that storefronts remain pedestrian-oriented and accessible to a wide range of visitors. As currently written, the Zoning Code specifies that within required retail frontage zones, retail businesses that conduct a majority of their sales (over 50 percent) via the internet or other telecommunications methods are not permitted. This requirement appears to be outdated and overly restrictive, as many modern retailers rely on online sales as a primary component of their business operations. Staff is proposing to remove this restriction to better reflect current retail practices and to allow a broader range of retailers that conduct business online to be able to locate within these important commercial corridors in the City of San Mateo.

7. Clarification on Temporary Construction Uses
The amended zoning districts have been updated to clarify that temporary construction-related buildings and structures are permitted only during an active construction period associated with an approved development project. Such facilities must be removed upon completion of construction.

NEXT STEPS:

If introduced, the Ordinance will be brought back for a second reading and adoption at the next available City Council meeting, and if approved by Council, the Ordinance will then go into effect 30 days afterwards.

PUBLIC NOTICE AND COMMENTS:

All meeting noticing requirements were met, including the publication of a public notice in the newspaper of general circulation (San Mateo Daily Journal) and posting at City facilities at least 10 days in advance of the public hearing consistent with Government Code Section 65090. Public notice was provided in advance of the Planning Commission hearing in compliance with Assembly Bill (AB) 2094 and Government Code Section 65854. Additionally, staff sent meeting details in the Planning Division eNewsletter, citywide eNewsletter, and the Housing Element interested parties list and posted to the Planning Division’s Current Development Projects webpage.

Staff has received seven public comments on the proposed Ordinance, which are included as Attachment 3. The public

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comments note support of cost reductions for 100% affordable projects, support for affordable housing, input on the new open space standards, and support for increased building heights. In addition, commenters requested amendments to other Code sections and identified several outdated standards that have not been addressed as part of the proposed Ordinance. These changes are intended to be interim development standards while outreach and detailed analysis is completed as part of the Comprehensive Zoning Code Update (CZCU).

Comments also noted concerns related to the proposed building heights for commercial-only buildings within the mixed- use zone districts and if it is consistent with the General Plan. While the General Plan does establish a range of permitted building heights based on stories, the Zoning Code has the authority to implement specific height standards within the height range set by the General Plan, so staff does not see any inconsistencies with the proposed Ordinance as drafted.

Translating General Plan story limits to Zoning Code height limits will be a key discussion topic as part of the CZCU, with final height limits being set as part of that process and these districts being updated accordingly. The letter also identified a minor error in the redline document reviewed by Planning Commission, which has since been corrected.

Any public comments submitted after agenda publication will be posted to this item on the City’s Public Meeting Portal as “Post Packet Public Comments.”
ENVIRONMENTAL DETERMINATION:

The proposed Ordinance is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 21080.17 of the Public Resources Code and Section 15183 of the CEQA Guidelines. CEQA Guidelines Section 15183 provides a statutory exemption for projects that are consistent with a previously adopted General Plan, Community Plan, or Zoning ordinance for which an Environmental Impact Report (EIR) was certified. The General Plan 2040 and Climate Plan Update Final EIR, finalized in January 2024, evaluated development impacts associated with approximately 19,764 residential units and 3,186,000 square feet of nonresidential floor area. The proposed Zoning Code amendments are intended to facilitate development capacity consistent with the General Plan and would support the development of additional residential units and nonresidential floor area within the growth assumptions already analyzed in the EIR.

STRATEGIC PLAN ALIGNMENT:

This proposed Ordinance supports implementation of the City’s Land Use and Housing initiatives.

ATTACHMENTS
Att 1 – Proposed Ordinance – Zoning Code Amendments
Att 2 – Proposed Ordinance (Track Changes)
Att 3 – Public Comments

STAFF CONTACT
Shelby Donohoe, Senior Planner
[email protected]
(650) 522-7218

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8 CITY OF SAN MATEO

DRAFT ORDINANCE
AMENDING THE ZONING CODE (TITLE 27) TO CREATE FOUR NEW ZONING DISTRICTS (R6 HIGH DENSITY MULTIPLE FAMILY RESIDENTIAL, R7 HIGH DENSITY MULTIPLE FAMILY RESIDENTIAL, MU3 MEDIUM DENSITY MIXED-USE, AND MU4 HIGH DENSITY MIXED-USE), UPDATE TEXT IN VARIOUS SECTIONS, AND DETERMINE

THAT THE AMENDMENTS ARE EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 21080.17 OF THE PUBLIC RESOURCES CODE AND SECTION 15183 OF THE CEQA GUIDELINES
WHEREAS, on March 18, 2024, at a duly noticed public hearing, the City Council adopted Strive San Mateo General Plan 2040 (General Plan) with Resolution No. 25 (2024), as a comprehensive update to General Plan 2030; and

WHEREAS, on March 18, 2024, at a duly noticed public hearing, the City Council certified the City of San Mateo’s General Plan’s EIR and adopted the Significant Impacts and Mitigations Measures Findings and Alternatives Findings, and Statement of Overriding Considerations with Resolution No. 26 (2024); and WHEREAS, the Environmental Impact Report (EIR) for the San Mateo General Plan 2040 analyzed new residential development of up to 21,410 new housing units and growth around the City through 2040; and WHEREAS, the City of San Mateo is authorized under the State of California to regulate land use for the public health, safety, and general welfare; and
WHEREAS, the existing zoning districts do not fully correspond to or adequately implement certain land use designations established in the General Plan, particularly with respect to higher-intensity mixed-use and higher-density residential development; and
WHEREAS, the proposed zoning districts (R6 High Density Multiple Family Residential, R7 High Density Multiple Family Residential, MU3 Medium Density Mixed-Use, and MU4 High Density Mixed-Use) are intended to implement General Plan land use designations by allowing a compatible mix of higher density residential, commercial, office, and civic uses at appropriate intensities, while promoting walkability, efficient land use, and access to services; and
WHEREAS, this Ordinance also includes various Zoning Code cleanup amendments, including revisions to intended to clarify language, correct inconsistencies, remove obsolete provisions, and improve overall usability and internal consistency of the Zoning Code; and
WHEREAS, the proposed Zoning Code cleanup items are minor in nature, do not alter the overall intent of the Zoning Code, and are necessary to ensure clear and effective administration of the regulations; and WHEREAS, the proposed Ordinance is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 21080.17 of the Public Resources Code and Section 15183 of the CEQA Guidelines because the proposed updates are consistent with the development assumptions established within General Plan.

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8 WHEREAS, on June 23, 2026, the Planning Commission held a duly noticed public hearing, received all written and oral public comments, and recommended that the City Council approve the proposed Ordinance to amend Title 27.

WHEREAS, on ____________, 2026, at a duly noticed public hearing, the City Council adopted an Ordinance to adopt the amendments to several Chapters of Title 27, Zoning, of the San Mateo Municipal Code to implement the General Plan.

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

Section 1. Legislative Findings. At a duly noticed public hearing on _____________________, 2026, the City Council of the City of San Mateo reviewed and considered the accompanying staff report and attachments thereto, the exemption from environmental review, together with comments received during the public review process, and hereby finds and determines that the proposed Ordinance is consistent with the adopted General Plan in that it supports the development of housing and achieves the General Plan’s stated goals and policies.

Section 2. Section 27.04.130 of the San Mateo Municipal Code is amended as follows:

27.04.130 Community Care Facility
A "community care facility" means any place or building that is maintained and operated to provide 24- hour non-medical residential care, or day care services for children, adults, or both, limited to the following:
(a) Residential Care Facility. A residential care facility means a family home, group home, residential care facility for the elderly, foster home, intermediate care facility or similar facility, for 24-hour non-medical care of persons in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual;
(b) Day Care Center. A day care facility means any facility which provides non-medical care to persons (adults and/or children) in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual on less than a 24-hour basis; (c) Family Day Care Home. A family day care home means a facility which provides care, protection, and supervision of no more than 14 children in the caregiver's own home, for periods of less than 24 hours per day, while the parents or guardians are away.

Section 3. Section 27.04.200 of the San Mateo Municipal Code is amended as follows:

27.04.200 Floor Area
(a) Definitions.
(1) Floor Area. Floor area means the sum of the gross horizontal areas of all principal and accessory buildings and above grade covered parking on a zoning plot. (2) Floor Area Ratio (FAR). Floor area ratio means the gross floor area of the buildings on a zoning plot divided by the net lot area.

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8 (b) Measurement, other than single-family dwellings in R1 zoning districts. (1) Floor area is measured from the exterior façade of the building's wall planes, from the centerline of party walls, or from a line three feet from the edge of an eave, whichever produces the largest floor area. Stories exceeding fifteen (15) feet in height shall be counted as additional floor area, with the exception of ground floor commercial uses. Floor area also includes all accessory structures on the site and basements that meet the definition in subsection (c)(6). (2) Exclusions. The following are not counted as floor area:
(A) Covered or open courts, and atriums, on the ground floor, provided that the area is not used as dwelling, office, retailing, or required access; (B) In multiple-level buildings, covered courts, if the retailing uses are open to the public. Multiple-level stairwells and elevators shall be counted only as ground floor area; (C) Covered walkways and balconies;
(D) First floors, mechanical areas, penthouse, and top floors are counted only once as floor area, regardless of height;
(E) Bicycle parking facilities;
(F) Floor area designated for day care centers accessory to and intended to serve a multi-family, commercial, office or manufacturing use. Such floor area may be located within the primary structure or may be in a freestanding structure accessory to the primary structure; (G) Covered parking for office use shall not be counted as floor area in areas delineated for exclusion within an adopted plan, such as the Mariner's Island Specific Plan or the Bay Meadows Specific Plan.
(c) Measurement, for single-family dwellings in R1 zoning districts, shall include the following:
(1) A covered structure or portion of a building where it has a horizontal or sloped covering which consists of 50% or more solid material.
(2) All area enclosed within the walls of the principal structure (as measured from the outside perimeter of walls), and the area (or footprint) of any attached carports, covered balconies or porches (as measured from the outside perimeter of its support structures). (A) Exception: To encourage street frontage activity, the first 100 square feet of a covered front porch shall not be included as floor area. (3) The area of all detached accessory structures, regardless of the number of open sides, including:
(A) Detached garages and carports;

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8 (B) Storage sheds and other similar structures; and
(C) Covered patios or similar structures.
(4) Any interior space where the vertical distance between the upper surface of the floor and the floor above is fifteen (15) feet or more shall be counted as twice the floor area. If there is no floor above the space, then the distance shall be measured to the underside of the roof structure. (5) Attic space is considered floor area when area "A" is at least 50% of areas "A" and "B" combined in the following plan-view diagram:

Area "B"
(ceiling height
between 5′ and 7′
6″)
Area "A"
(ceiling height 7′ 6″
or greater)
Area "B"
(ceiling height
between 5′ and 7′
6″)
(6) A basement is considered floor area when:
(A) It is habitable space as defined in the current California Building Code, and (B) More than one-half the area of the outermost basement walls is above finished or pre-existing grade (whichever is lower), and the surface of the finished floor level above is either:
(i) More than four (4) above finished or pre-existing grade (whichever is lower) for more than 50% of the total perimeter, and
(ii) More than twelve (12) feet above finished or pre-existing grade (whichever is lower) at any point.
(d) Off-Street Parking and Loading. Floor area for determining off-street parking and loading requirements as contained in Chapter 27.64, shall be based on physical floor space and shall not include the following:
(1) Storage areas except for areas located within selling or working space such as counters, racks, and closets;
(2) Utility areas including, but not limited to, elevator shafts, telephone switching rooms, stairwells, rest rooms, and heating and cooling rooms;
(3) Accessory facilities to be used only by employees of the principal uses; (4) Off-street parking and loading facilities, including aisles, ramps, and maneuvering space; (5) Basement, attic, or mezzanine floor area other than area devoted to retailing activities, to the production of processing of goods, or to business or professional offices;

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8 (6) Floor area designated for day care centers accessory to and intended to serve a multi-family, commercial, office or manufacturing use. Such floor area may be located within the primary structure or may be in a freestanding structure accessory to the primary structure; (7) Floor Area Computed for Building Volume. Additional parking shall be required in the event of change of excluded floor areas into uses generating parking. (e) Interpretation. All interpretations of floor area shall be subject to the review and approval of the Zoning Administrator.
(f) No change in the definition or calculation of floor area, except to the extent that the City Council expressly states that the change allows greater floor area, shall be construed to authorize an expansion of the allowable floor area of a building or structure, whether pursuant to Chapter 27.72 or otherwise.

Section 4. Section 27.08.030 of the San Mateo Municipal Code is amended as follows:

27.08.030 Site Plan and Architectural Review (SPAR)
(a) The following projects, as well as other projects that may be designated in this code, require a site plan and architectural review and no such project shall commence until the approval body has approved a planning application for site plan and architectural review: any building, new parking lot, fence over seven (7) feet in height, or an extension, alteration, or addition of or to an existing building or parking lot; historic buildings within the Downtown Specific Plan area as specified in Chapter 27.66. Single family and accessory buildings that conform to the standards contained in Chapter 27.18, or minor facade modifications as defined in Section 27.04.313, and which conform with Section 27.08.031, are exempt from this requirement, unless they are specifically designated by this section as requiring review. In making its review, the Zoning Administrator, Development Review Board, and Planning Commission shall be guided by the standards adopted by the Planning Commission and City Council. The application shall be approved if the Zoning Administrator or Commission finds all of the following to exist:
(1) The structures, site plan, and landscaping are in scale and harmonious with the character of the neighborhood;
(2) The development will not be detrimental to the harmonious and orderly growth of the City; (3) The development will not impair the desirability of investment or occupation in the vicinity, and otherwise is in the best interests of the public health, safety, or welfare; (4) The development meets all applicable standards as adopted by the Planning Commission and City Council, conforms with the General Plan, and will correct any violations of the zoning Ordinance, building code, or other municipal codes that exist on the site; (5) The development will not adversely affect matters regarding police protection, crime prevention, and security.
(b) All buildings, structures, landscaping, and other establishments shall be constructed in accordance with the approved drawings.

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8 Section 5. Section 27.30.010 of the San Mateo Municipal Code is amended as follows:

27.30.010 Permitted Uses
The following uses are permitted provided that the use limitations contained in Section 27.30.025, "Permitted and special uses—Twenty-Fifth Avenue Improvement Area," shall apply to properties in the Twenty- Fifth Avenue Improvement Area and the use limitations contained in Section 27.30.027, "Permitted and special uses—Hillsdale Station Area Plan Active Zone," shall apply to properties in the Hillsdale Station Area Plan Active Zone:
(a) Animal grooming, provided no overnight boarding occurs on the site; (b) Bakeries;
(c) Barber shops and hair salons;
(d) Delicatessens;
(e) Dry cleaners, with customer service areas;
(f) Financial institutions, provided the ground floor area devoted to this use does not exceed 2,500 square feet per establishment;
(g) Health studios and spas;
(h) Laundromats;
(i) Libraries;
(j) Low Barrier Navigation Center above the ground floor in compliance with Government Code Sections 65660-65668 shall be considered a use by-right. "Use by right" shall have the same meaning as defined in subdivision (i) of Section 65583.2. Supportive housing shall also comply with Section 27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone. (k) Newspaper publishing;
(l) Offices, provided the ground floor area devoted to this use does not exceed 2,500 square feet per establishment;
(m) Photo processing;
(n) Picture framing;
(o) Real estate establishments;

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8 (p) Residential units above the ground floor that comply with the objective development standards for the R3 District in Chapter 27.22 and affordable housing requirements as adopted by City Council resolution, unless otherwise specified in Chapter 27.29;
(q) Restaurants and accessory outdoor dining areas, without drive-through facilities; (r) Retail uses, such as, but not limited to, the following uses, subject to a maximum of 15,000 square feet of floor area per establishment except for supermarkets and drug stores:
(1) Antique shops,
(2) Apparel sales, tailoring and repair stores,
(3) Drug stores,
(4) Hardware and garden supply stores,
(5) Household furnishings,
(6) Pet shops,
(7) Supermarkets and grocery stores;
(s) Reverse vending machines, subject to regulations established in Chapter 27.69; (t) Schools and day care facilities;
(u) Travel agencies;
(v) Temporary buildings for construction purposes for a period not to exceed the duration of such construction;
(w) Accessory uses to principle uses permitted; and
(x) Other compatible uses as determined by the zoning administrator.

Section 6. Section 27.32.010 of the San Mateo Municipal Code is amended as follows:

27.32.010 Permitted Uses
The following uses are permitted:
(a) Permitted uses in the C1 district;
(b) Art galleries;
(c) Automotive accessory stores, excluding on-site service and repair of vehicles; (d) Boarding, lodging, or rooming houses;

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8 (e) Catering services;
(f) Hotels and motels, including restaurant and meeting rooms; (g) Laundries;
(h) Medical and dental clinics, including laboratories; (i) Offices;
(j) Parking facilities;
(k) Printing, lithographing, or publishing establishments for newspaper, business cards, and other similar uses;
(l) Radio and television broadcasting stations;
(m) Reproduction services;
(n) Residential units above the ground floor that comply with the objective development standards within the R4 district in Chapter 27.24 and affordable housing requirements as adopted by City Council resolution, except as otherwise specified in Chapter 27.29; (o) Retail uses, including incidental rental and repair; (p) Emergency Shelters;
(q) Accessory uses to principle uses permitted; and
(r) Other compatible uses as determined by the zoning administrator.

Section 7. Section 27.34.010 of the San Mateo Municipal Code is amended as follows:

27.34.010 Permitted Uses
The following uses are permitted:
(a) Permitted uses in the C1 and C2 districts;
(b) Residential units above the ground floor that comply with the objective development standards for the R4 District in Chapter 27.24 and affordable housing requirements as adopted by City Council resolution, except as otherwise specified in Chapter 27.29;
(c) Ambulance service;
(d) Automobile, boat, and truck sales and rental, including service and repair as accessory to the primary sales use, sales may occur on open lot;
(e) Automobile service, parts, and repairs, classified as minor motor vehicle repair in Section 27.04.325;

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8 (f) Car wash and detailing facilities, may not occur on open lot; (g) Laboratories, research, experimental, and testing, provided no production or manufacturing of products occurs on the premises;
(h) Accessory uses to principle uses permitted; and
(i) Other compatible uses as determined by the Zoning Administrator.

Section 8. Section 27.36.010 of the San Mateo Municipal Code is amended as follows:

27.36.010 Permitted Uses
The following uses are permitted:
(a) Permitted uses in the C1, C2, and C3 districts, except that residential uses, low barrier navigation centers, office uses on the properties along Palm Avenue between Twentieth and Twenty-fifth Avenues, and emergency shelters are prohibited;
(b) Air conditioning and heating sales and service;
(c) Animal hospitals, which may include outdoor kennels; (d) Automotive parts, service, and repair classified as major motor vehicle repair in Section 27.04.320; (e) Construction materials sales and lumberyards;
(f) Dry cleaning establishments, without customer service areas; (g) Linen, towel, diaper and other similar supply services; (h) Machinery sales, rental, and service, when conducted within an enclosed building; (i) Parcel delivery and receiving stations;
(j) Processing and assembly of goods determined by the Zoning Administrator to be compatible with adjacent uses, provided that space in a building does not exceed six thousand square feet of total floor area and basement space, not including stairwells or elevator shafts; and provided that such processing or assembly can be conducted without noise, vibration, order, dust or any other condition which might be disturbing to occupants of adjacent buildings. When manufacturing operations of the same or similar products demand space exceeding six thousand square feet, they shall be located in the M1 district. (k) Sheet metal shops;
(l) Storage and warehousing;
(m) Tool, die and pattern making;
(n) Welding and iron work;

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8 (o) Wholesale establishments;
(p) Accessory to principal uses permitted;
(q) Other compatible uses as determined by the Zoning Administrator.

Section 9. Section 27.38.020 of the San Mateo Municipal Code is amended as follows:

27.38.020 Permitted Uses
Unless otherwise provided in this title, uses of building or land in this district and buildings hereafter erected, structurally altered or enlarged shall be limited to the following uses:
(a) Any use permitted in the C2 District, except an animal hospital and emergency shelters; provided that the use limitations contained in Section 27.38.110, Required Retail Frontage, shall apply to properties located within the required retail frontage area, as shown in the Downtown Plan. (b) Residential units, when located above the ground floor and as part of a mixed-use development, subject to CBD residential development standards and affordable housing requirements as adopted by City Council resolution;
(c) Name plates and signs, as classified and regulated in Title 25. (d) Accessory uses which are necessary to the above-mentioned buildings and uses; including a maximum of 15% of floor area for ancillary office uses related to retail establishments located in the ground floor area of the district, and which are not visible from the street nor located within the retail storefront area. (e) Any other use deemed similar in nature and operation that is determined by the Zoning Administrator to be compatible with existing and permitted uses allowable under the CBD Central Business District zoning and is deemed desirable in serving the downtown core area and the community at large.

Section 10. Subsection (a)(1) of Section 27.38.110 of the San Mateo Municipal Code is amended as follows:

27.38.110 Required Retail Frontage
(a) Permitted Uses. The following uses are permitted on the ground floor subject to the requirements in Section 27.38.040, Conditions of Use, and the standards listed in subsection (c) below:
(1) Retail Sales. Uses principally engaged in retail sale or rental of consumer or household goods, including ancillary repair services.

Section 11. Section 27.44.020 of the San Mateo Municipal Code is amended as follows:

27.44.020 Permitted Uses
The following uses shall be permitted:

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8 (a) Administrative, executive, and professional offices, provided that the professional offices are limited to those professions listed in Section 5.24.160, and including similar professional occupations, and provided that no office of a veterinarian shall include an animal hospital or kennel. (b) Accessory uses; including, but not limited to:
(1) Sale of personal goods and services, when provided in the principal building, including, but not limited to, the following:
(A) Flower, food, and news vending;
(B) Printing and photocopying;
(C) Travel agencies;
(D) Ticket outlets;
(2) Other services which are customary appurtenant uses. (c) Health and recreation facilities.
(d) Public utility and service uses.
(e) Financial and business offices and related facilities. (f) Research laboratories (experimental and testing), provided no production or manufacturing occurs, and provided that all activities conform with the performance standards established for the M1 district. (g) Residential units that comply with the objective development standards for the R3 District in Chapter

27.22 and affordable housing requirements as adopted by City Council resolution, unless otherwise specified in Chapter 27.29.
(h) Restaurants without drive-through facilities.
(i) Schools and day care facilities.
(j) Temporary buildings for construction purposes for a period not to exceed the duration of such construction.
(k) Warehousing, storage, and distribution facilities as accessory uses but not exceeding 10,000 square feet per establishment or not more than 60% of gross floor area per establishment. (l) Other compatible uses as determined by the Zoning Administrator.

Section 12. Section 27.48.030 of the San Mateo Municipal Code is amended as follows:

27.48.030 Special Uses
Special Uses in the E1 district may also be allowed, subject to approval of a special use permit.

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8 Section 13. Chapter 27.50 of the San Mateo Municipal Code is added to Title 27 as follows:

Chapter 27.50
R6 District - High Density Multiple Family Residential

27.50.005 Purpose
The R6 High Density Multiple Family District correlates with the Residential Medium II Land Use Designation and will provide for higher-density, multi-family residential development, including condominiums and apartments, in locations near mixed-use, office, and commercial areas.

27.50.010 Permitted Uses
The following uses are permitted:
(a) Home daycare centers;
(b) Multiple family dwellings;
(c) Supportive housing in compliance with Government Code Sections 65650 - 65656, shall be considered a use by-right. "Use by right" shall have the same meaning as defined in Government Code Section 65583.2(i). Supportive housing shall also comply with Section 27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone.
(d) Licensed residential care facilities including group homes with six (6) or fewer residents, in addition to the caregiver's family, subject to the objective development standards that apply to other residential uses of the same type in the same zone. Certain licensed group homes shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9, as amended from time to time; and (e) Residential care homes of any size regardless of State licensing; and (f) Temporary buildings for construction purposes for a period not to exceed the duration of such construction.

27.50.020 Special Uses
Unless otherwise provided, the following uses may be permitted subject to the approval of a special use permit by the Planning Commission:
(a) Boarding and lodging houses;
(b) Nursing, hospice, and/or convalescent facility;
(c) Residential care facility (excluding group homes) with seven (7) or more residents in addition to the caregiver. Certain licensed care facilities shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9;

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8 (d) Fraternity and sorority houses.

27.50.030 Off-Street Parking
Off-street parking facilities shall be provided as required in the off-street parking code (Chapter 27.64).

27.50.040 Density
The maximum density shall be 99 dwelling units per acre.

27.50.050 Floor Area Ratio
The maximum floor area ratio of buildings and structures on a zoning plot shall be 3.5. [Alternative:
remove section and renumber accordingly.]

27.50.060 Building Height
Building height limit for this district shall be a maximum of six stories and seventy-five (75) feet.

27.50.070 Minimum Yards
A rear yard setback of five (5) feet must be provided.

27.50.080 Buffers
Buffers shall be provided as follows:
(a) If a side property line is adjacent to a R1 or R2 district, a buffer of ten (10) feet must be provided. (b) If a rear property line is adjacent to R1 or R2 district, a buffer of fifteen (15) feet shall be provided.

27.50.090 Open Space
Residential development shall provide open space as follows:
(a) Private usable open space only: A minimum of 50 square feet of private usable open space per unit; or
(b) Common usable open space only: A minimum of 75 square feet of common usable open space per unit; or
(c) Combination of private and common open space:
(1) Private usable open space, at a minimum of 30 square feet per unit, and (2) Common usable open space equal to at least 150% of the difference between the private usable open space requirement and the proposed amount of private usable open space.

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8 (3) For example, a development proposing 30 square feet of private usable open space per unit would also have to provide 30 square feet of common usable open space per unit. [Formula Example:
(50 square feet – 30 square feet) * 150% = 30 common usable square feet.] Section 14. Chapter 27.51 of the San Mateo Municipal Code is added to Title 27 as follows:

Chapter 27.51
R7 District - High Density Multiple Family Residential

27.51.005 Purpose
The R7 Multiple Family Dwellings District correlates with the Residential High Land Use Designation and is intended to provide for high-density multi-family residential development, including condominiums and apartments. The R7 District is intended for development in Downtown San Mateo, in proximity to Caltrain stations, and along major transit corridors such as El Camino Real.

27.51.010 Permitted Uses
The following uses are permitted:
(a) Home daycare centers;
(b) Multiple-family dwellings;
(c) Supportive housing in compliance with Government Code Sections 65650 - 65656, shall be considered a use by-right. "Use by right" shall have the same meaning as defined in Government Code Section 65583.2(i). Supportive housing shall also comply with Section 27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone.
(d) Licensed residential care facilities including group homes with six (6) or fewer residents, in addition to the caregiver's family, subject to the objective development standards that apply to other residential uses of the same type in the same zone. Certain licensed group homes shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9, as amended from time to time; and (e) Temporary buildings for construction purposes for a period not to exceed the duration of such construction.

27.51.020 Special Uses
Unless otherwise provided the following uses may be permitted subject to the approval of a special use permit by the Planning Commission:
(a) Boarding and lodging houses;
(b) Nursing, hospice, and/or convalescent facility;

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8 (c) Residential care facility (excluding group homes) with seven (7) or more residents in addition to the caregiver. Certain licensed care facilities shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9;
(d) Fraternity and sorority houses.

27.51.030 Off-Street Parking
Off-street parking facilities shall be provided as required in the off-street parking code (Chapter 27.64).

27.51.040 Density
The maximum density shall be 130 dwelling units per acre.

27.51.050 Floor Area Ratio
The maximum floor area ratio of buildings and structures on a zoning plot shall be 4.0. [Alternative:
remove section and renumber accordingly.]

27.51.060 Building Height
Building height limit for this district shall be a maximum of eight stories and one hundred (100) feet.

27.51.070 Minimum Yards
A rear setback of five (5) feet must be provided.

27.51.080 Buffers
Buffers shall be provided as follows:
(a) Side. If a side property line is adjacent to a R1 or R2 district, a buffer of ten (10) feet must be provided.
(b) Rear. If a rear property line is adjacent to R1 or R2 district, a buffer of fifteen (15) feet shall be provided.

27.51.090 Open Space
Residential development shall provide open space as follows:
(a) Private usable open space only: A minimum of 50 square feet of private usable open space per unit; or
(b) Common usable open space only: A minimum of 75 square feet of common usable open space per unit; or
(c) Combination of private and common open space:

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8 (1) A combination of private usable open space, at a minimum of 30 square feet per unit, and (2) Common usable open space equal to at least 150% of the difference between the private usable open space requirement and the proposed amount of private usable open space. (3) For example, a development proposing 30 square feet of private usable open space per unit would also have to provide 30 square feet of common usable open space per unit. [Formula Example:
(50 square feet – 30 square feet) * 150% = 30 square feet of common usable open space.] Section 15. Chapter 27.52 of the San Mateo Municipal Code is added to Title 27 as follows:

Chapter 27.52
MU3 District – Medium Density Mixed-Use

27.52.005 Purpose
The MU3 Medium Density Mixed-Use District is intended to allow medium-density, mixed-use buildings that provide a mix of commercial, office, and/or residential uses within the same site or building as well as individual commercial, office, or residential uses. The MU3 District is intended to allow a mix of uses near other mixed-use, commercial, or residential areas, and within Downtown San Mateo.

27.52.010 Permitted Uses
The following uses are permitted:
(a) Accessory uses to principal uses permitted;
(b) Animal grooming, provided no overnight boarding occurs on the site; (c) Art galleries;
(d) Automotive accessory stores, excluding on-site service and repair of vehicles; (e) Boarding, lodging, or rooming houses;
(f) Emergency Shelters;
(g) Financial institutions;
(h) Health studios and spas;
(i) Hotels and motels, including restaurants and meeting rooms; (j) Libraries;
(k) Low Barrier Navigation Center above the ground floor in compliance with Government Code Sections 65660-65668 shall be considered a use by-right. "Use by- right" shall have the same meaning as defined in subdivision (i) of Section 65583.2. Supportive housing shall comply with Section 27.94.020 By-Right Residential

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8 Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone.
(l) Medical and dental clinics, including laboratories; (m) Offices;
(n) Personal Services;
(o) Real estate establishments;
(p) Multi-family residential units;
(q) Supportive housing in compliance with Government Code Sections 65650 - 65656, shall be considered a use by-right use. "Use by right" shall have the same meaning as defined in Government Code Section 65583.2(i). Supportive housing shall also comply with Section 27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone.
(r) Licensed residential care facilities including group homes with six (6) or fewer residents, in addition to the caregiver's family, subject to the objective development standards that apply to other residential uses of the same type in the same zone. Certain licensed group homes shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9, as amended from time to time; (s) Restaurants, catering services, and accessory outdoor dining areas, without drive-through facilities; (t) Retail uses, including ancillary rental and repair; (u) Schools and day care facilities;
(v) Temporary buildings for construction purposes for a period not to exceed the duration of such construction; and
(w) Other compatible uses as determined by the Zoning Administrator.

27.52.020 Special Uses
The following uses may also be permitted subject to approval of a special use permit, provided that the use limitations contained in Section 27.30.025, "Permitted and special uses—Twenty-Fifth Avenue Improvement Area," shall apply to properties in the Twenty-Fifth Avenue improvement Area and the use limitations contained in Section 27.30.027, "Permitted and special uses—Hillsdale Station Area Plan Active Zone," shall apply to properties in the Hillsdale Station Area Plan Active Zone:
(a) Alternative financial services, subject to the restrictions set forth in Section 27.30.020; (b) Automobile gasoline service station;
(c) Automotive sales;

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8 (d) Clubs, lodges, and fraternal organizations;
(e) Parking facilities, as a principal use;
(f) Residential care facility (excluding group homes) with seven (7) or more residents in addition to the caregiver. Certain licensed care facilities shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9;
(g) Religious institutions; and
(h) Other compatible uses as determined by the Zoning Administrator subject to the granting of a special use permit.

27.52.030 Conditions Of Use
All uses, except residences, shall be subject to the following conditions:
(a) Manufacturing, processing, or treatment of products which is clearly ancillary and essential to the retail business may be conducted on the same premises;
(b) Uses shall not generate odor, dust, smoke, noise, vibration, toxic waste or other emissions which constitute nuisances;
(c) Exterior signs shall pertain only to a use conducted within the building; (d) Uses shall be conducted wholly within an enclosed building, except as authorized by special use permit, or as previously authorized, or if the use is legally nonconforming.

27.52.040 Off-Street Parking And Loading
Off-street parking facilities shall be provided as required in the off-street parking code (Chapter 27.64).

27.52.050 Maximum Floor Area Ratio
The maximum floor area ratio of buildings and structures on a zoning plot shall be 4.0. [Alternative - add the following text: “Floor area ratio shall only apply to nonresidential portions of a building.”]

27.52.060 Density
The minimum density for projects with five or more residential units shall be consistent with section

27.02.230. The maximum density for residential developments shall be 99 dwelling units per acre.

27.52.070 Building Height
Building height shall not exceed the following:
(a) A maximum of four stories and fifty (50) feet for a nonresidential building;

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8 (b) A maximum of six stories and seventy-five (75) feet for a residential building or mixed-use building with residential uses.

27.52.080 Minimum Yards
A rear yard of not less than five (5) feet shall be provided.

27.52.090 Buffers
Buffers shall be provided as follows:
(a) Side. If a side property line is adjacent to a R1 or R2 district, a buffer of ten (10) feet must be provided.
(b) Rear. If a rear property line is adjacent to R1 or R2 district, a buffer of fifteen (15) feet shall be provided.

27.52.100 Open Space
Residential development shall provide open space as follows:
(a) Private usable open space only: A minimum of 50 square feet of private usable open space per unit; or
(b) Common usable open space only: A minimum of 75 square feet of common usable open space per unit; or
(c) Combination of private and common open space:
(1) A combination of private usable open space, at a minimum of 30 square feet per unit, and (2) Common usable open space equal to at least 150% of the difference between the private usable open space requirement and the proposed amount of private usable open space. (3) For example, a development proposing 30 square feet of private usable open space per unit would also have to provide 30 square feet of common usable open space per unit. [Formula Example:
(50 square feet – 30 square feet) * 150% = 30 common usable square feet.]

27.52.110 Setback And Build-To-Line Standards For El Camino Real The regulations governing setback and build-to-line standards for El Camino Real in the C1 district shall apply.

Section 16. Chapter 27.53 of the San Mateo Municipal Code is added to Title 27 as follows:

Chapter 27.53
MU4 District – High Density Mixed-Use

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8 27.53.005 Purpose
The MU4 High Density Mixed-Use District is intended to allow high-density mixed-use buildings that provide a mix of commercial, office, and/or residential uses within the same site or building as well as individual commercial, office, or residential uses. The MU4 District is intended to allow a mix of uses near major streets, train stations, and shopping centers, and within Downtown San Mateo.

27.53.010 Permitted Uses
The following uses are permitted:
(a) Permitted uses in the MU3 District.

27.53.020 Special Uses
The following uses may also be permitted subject to approval of a special use permit, provided that the use limitations contained in Section 27.30.025, "Permitted and special uses—Twenty-Fifth Avenue Improvement Area," shall apply to properties in the Twenty-Fifth Avenue improvement Area and the use limitations contained in Section 27.30.027, "Permitted and special uses—Hillsdale Station Area Plan Active Zone," shall apply to properties in the Hillsdale Station Area Plan Active Zone:
(a) Alternative financial services, subject to the restrictions set forth in Section 27.30.020; (b) Automobile gasoline service station;
(c) Automotive sales;
(d) Clubs, lodges, and fraternal organizations;
(e) Parking facilities, as a principle use;
(f) Residential care facility (excluding group homes) with seven (7) or more residents in addition to the caregiver. Certain licensed care facilities shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9;
(g) Religious institutions; and
(h) Other compatible uses as determined by the Zoning Administrator subject to the granting of a special use permit.

27.53.030 Conditions of use
All uses, except residences, shall be subject to the following conditions:
(a) Manufacturing, processing, or treatment of products which is clearly ancillary and essential to the retail business may be conducted on the same premises;

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8 (b) Uses shall not generate odor, dust, smoke, noise, vibration, toxic waste or other emissions which constitute nuisances;
(c) Exterior signs shall pertain only to a use conducted within the building; (d) Uses shall be conducted wholly within an enclosed building, except as authorized by special use permit, or as previously authorized, or if the use is legally nonconforming.

27.53.040 Off-Street Parking and Loading
Off-street parking facilities shall be provided as required in the off-street parking code (Chapter 27.64).

27.53.050 Maximum Floor Area Ratio
The maximum floor area ratio of buildings and structures on a zoning plot shall be 4.5. [Alternative - add the following text: “Floor area ratio shall only apply to nonresidential portions of a building.”]

27.53.060 Density
The minimum density for projects with five or more residential units shall be consistent with section

27.02.230. The maximum density for residential developments shall be 130 dwelling units per acre.

27.53.070 Building Height
Building height shall not exceed the following:
(a) A maximum of five stories and sixty five (65) feet for a nonresidential building; (b) A maximum of eight stories and one hundred (100) feet for a residential building or a mixed-use building with residential uses.

27.53.080 Minimum Yards
A rear yard of not less than five (5) feet shall be provided.

27.53.090 Buffers
Buffers shall be provided when adjacent to an R1 or R2 district as follows:
(a) Side. If a side property line is adjacent to a R1 or R2 district, a buffer of ten (10) feet must be provided.
(b) Rear. If a rear property line is adjacent to R1 or R2 district, a buffer of fifteen (15) feet shall be provided.

27.53.100 Open Space
Residential development shall provide open space as follows:

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1 3
9 4
8 (a) Private usable open space only: A minimum of 50 square feet of private usable open space per unit; or
(b) Common usable open space only: A minimum of 75 square feet of common usable open space per unit; or
(c) Combination of private and common open space:
(1) A combination of private usable open space, at a minimum of 30 square feet per unit, and (2) Common usable open space equal to at least 150% of the difference between the private usable open space requirement and the proposed amount of private usable open space. (3) For example, a development proposing 30 square feet of private usable open space per unit would also have to provide 30 square feet of common usable open space per unit. [Formula Example:
(50 square feet – 30 square feet) * 150% = 30 common usable square feet.]

27.53.110 Setback And Build-To-Line Standards For El Camino Real The regulations governing setback and build-to-line standards for El Camino Real in the C1 district shall apply.

Section 17. Section 27.71.020 of the San Mateo Municipal Code is amended as follows:

27.71.020 Scope
This chapter shall apply as a minimum for all projects requiring approval of a planning application pursuant to Section 27.08.010, except for single-family dwelling design review and 100% affordable housing development applications. Landscaping not subject to this chapter shall be governed by the provisions of Chapter 13.40. The Zoning Administrator may determine that minor additions or changes to existing property are not reasonably related to the purpose of this chapter and may be exempt from the requirements of this chapter.

Section 18. Environmental Determination. In accordance with California Environmental Quality Act (CEQA) Guidelines, section 21080.17 of the Public Resources Code and Section 15183 of the CEQA Guidelines, this action is statutorily exempt.

Section 19. Severability. In the event any section, clause or provision of this Ordinance shall be determined invalid or unconstitutional, such section, clause or provision shall be deemed severable and all other sections or portions hereof shall remain in full force and effect.

Section 20. 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 21. Legislative History and Effective Date. This Ordinance was introduced on Clerk to complete., and adopted on Clerk to complete., and shall be effective 30 days after its adoption.

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27.04.130 SITE PLAN AND ARCHITECTURAL REVIEW (SPAR). COMMUNITY CARE FACILITY (a) The following projects, as well as other projects that may be designated in this code, require a site plan and architectural review and no such project shall commence until the approval body has approved a planning application for site plan and architectural review: any building, new parking lot, fence over seven (7) feet in height, or an extension, alteration, or addition of or to an existing building or parking lot; historic buildings within the Downtown Specific Plan area as specified in Chapter 27.66. Single family and accessory buildings that conform to the standards contained in Chapter 27.18, or minor facade modifications as defined in Section 27.04.313, and which conform with Section 27.08.031, are exempt from this requirement, unless they are specifically designated by this section as requiring review. In making its review, the Zoning Administrator, Development Review Board, and Planning Commission shall be guided by the standards adopted by the Planning Commission and City Council. The application shall be approved if the Zoning Administrator or Commission finds all of the following to exist:
(1) The structures, site plan, and landscaping are in scale and harmonious with the character of the neighborhood;
(2) The development will not be detrimental to the harmonious and orderly growth of the City;
(3) The development will not impair the desirability of investment or occupation in the vicinity, and otherwise is in the best interests of the public health, safety, or welfare; (4) The development meets all applicable standards as adopted by the Planning Commission and City Council, conforms with the General Plan, and will correct any violations of the zoning ordinance, building code, or other municipal codes that exist on the site;
(5) The development will not adversely affect matters regarding police protection, crime prevention, and security.
(a) All buildings, structures, landscaping, and other establishments shall be constructed in accordance with the approved drawings.
(b) The City Council shall review and make the final determination on all buildings that exceed the height limit in the General Plan.

A "community care facility" means any place or building that is maintained and operated to provide 24-hour non-medical residential care, or day care services for children, adults, or both, limited to the following:
(a) Residential Care Facility. A residential care facility means a family home, group home, residential care facility for the elderly, foster home, intermediate care facility or similar facility, for 24-hour non-medical care of persons in need of personal services, supervision or assistance essential for sustaining the activities of daily living or for the protection of the individual;

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(b) Day Care Center. A day care facility means any facility which provides non-medical care to persons (adults and/or children) in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual on less than a 24-hour basis;
(c) Family Day Care Home. A family day care home means a facility which provides care, protection, and supervision of no more than 14 children in the caregiver's own home, for periods of less than 24 hours per day, while the parents or guardians are away.

27.04.200 Floor area.
(a) Definitions.
(1) Floor Area. Floor area means the sum of the gross horizontal areas of all principal and accessory buildings and above grade covered parking on a zoning plot. (2) Floor Area Ratio (FAR). Floor area ratio means the gross floor area of the buildings on a zoning plot divided by the net lot area. (b) Measurement, other than single-family dwellings in R1 zoning districts. (1) Floor area is measured from the exterior façade of the building's wall planes, from the centerline of party walls, or from a line three feet from the edge of an eave, whichever produces the largest floor area. Stories exceeding fifteen (15) feet in height shall be counted as additional floor area, with the exception that ground floor retail may be up to eighteen (18) feet in height measured from first finish floor to second finish floor before being counted as additional floor area.of ground floor commercial uses. Floor area also includes all accessory structures on the site and basements that meet the definition in subsection (c)(6).
(2) Exclusions. The following are not counted as floor area:
(A) Covered or open courts, and atriums, on the ground floor, provided that the area is not used as dwelling, office, retailing, or required access; (B) In multiple-level buildings, covered courts, if the retailing uses are open to the public. Multiple-level stairwells and elevators shall be counted only as ground floor area;
(C) Covered walkways and balconies;
(D) First floors, mechanical areas, penthouse, and top floors are counted only once as floor area, regardless of height;

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(E) Bicycle parking facilities;
(F) Floor area designated for day care centers accessory to and intended to serve a multi-family, commercial, office or manufacturing use. Such floor area may be located within the primary structure or may be in a freestanding structure accessory to the primary structure;
(G) Covered parking for office use shall not be counted as floor area in areas delineated for exclusion within an adopted plan, such as the Mariner's Island Specific Plan or the Bay Meadows Specific Plan.
(c) Measurement, for single-family dwellings in R1 zoning districts, shall include the following:
(1) A covered structure or portion of a building where it has a horizontal or sloped covering which consists of 50% or more solid material.
(2) All area enclosed within the walls of the principal structure (as measured from the outside perimeter of walls), and the area (or footprint) of any attached carports, covered balconies or porches (as measured from the outside perimeter of its support structures). (A) Exception: To encourage street frontage activity, the first 100 square feet of a covered front porch shall not be included as floor area. (3) The area of all detached accessory structures, regardless of the number of open sides, including:
(A) Detached garages and carports;
(B) Storage sheds and other similar structures; and
(C) Covered patios or similar structures.
(4) Any interior space where the vertical distance between the upper surface of the floor and the floor above is fifteen (15) feet or more shall be counted as twice the floor area.

If there is no floor above the space, then the distance shall be measured to the underside of the roof structure.
(5) Attic space is considered floor area when area "A" is at least 50% of areas "A" and "B" combined in the following plan-view diagram:

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Area "B"
(ceiling height
between 5′ and
7′ 6″)
Area "A"
(ceiling height 7′
6″ or greater)
Area "B"
(ceiling height
between 5′ and
7′ 6″)

(6) A basement is considered floor area when:
(A) It is habitable space as defined in the current California Building Code, and
(B) More than one-half the area of the outermost basement walls is above finished or pre-existing grade (whichever is lower), and the surface of the finished floor level above is either:
(i) More than four (4) above finished or pre-existing grade (whichever is lower) for more than 50% of the total perimeter, and (ii) More than twelve (12) feet above finished or pre-existing grade (whichever is lower) at any point.
(d) Off-Street Parking and Loading. Floor area for determining off-street parking and loading requirements as contained in Chapter 27.64, shall be based on physical floor space and shall not include the following:
(1) Storage areas except for areas located within selling or working space such as counters, racks, and closets;
(2) Utility areas including, but not limited to, elevator shafts, telephone switching rooms, stairwells, rest rooms, and heating and cooling rooms; (3) Accessory facilities to be used only by employees of the principal uses; (4) Off-street parking and loading facilities, including aisles, ramps, and maneuvering space;
(5) Basement, attic, or mezzanine floor area other than area devoted to retailing activities, to the production of processing of goods, or to business or professional offices; (6) Floor area designated for day care centers accessory to and intended to serve a multi-family, commercial, office or manufacturing use. Such floor area may be located

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within the primary structure or may be in a freestanding structure accessory to the primary structure;
(7) Floor Area Computed for Building Volume. Additional parking shall be required in the event of change of excluded floor areas into uses generating parking. (e) Interpretation. All interpretations of floor area shall be subject to the review and approval of the Zoning Administrator.
(f) No change in the definition or calculation of floor area, except to the extent that the City Council expressly states that the change allows greater floor area, shall be construed to authorize an expansion of the allowable floor area of a building or structure, whether pursuant to Chapter

27.72 or otherwise.

27.08.030 SITE PLAN AND ARCHITECTURAL REVIEW (SPAR).)
(a) The following projects, as well as other projects that may be designated in this code, require a site plan and architectural review and no such project shall commence until the approval body has approved a planning application for site plan and architectural review: any building, new parking lot, fence over seven (7) feet in height, or an extension, alteration, or addition of or to an existing building or parking lot; historic buildings within the Downtown Specific Plan area as specified in Chapter 27.66. Single family and accessory buildings that conform to the standards contained in Chapter 27.18, or minor facade modifications as defined in Section 27.04.313, and which conform with Section 27.08.031, are exempt from this requirement, unless they are specifically designated by this section as requiring review. In making its review, the Zoning Administrator, Development Review Board, and Planning Commission shall be guided by the standards adopted by the Planning Commission and City Council. The application shall be approved if the Zoning Administrator or Commission finds all of the following to exist:
(1) The structures, site plan, and landscaping are in scale and harmonious with the character of the neighborhood;
(2) The development will not be detrimental to the harmonious and orderly growth of the City;
(3) The development will not impair the desirability of investment or occupation in the vicinity, and otherwise is in the best interests of the public health, safety, or welfare; (4) The development meets all applicable standards as adopted by the Planning Commission and City Council, conforms with the General Plan, and will correct any violations of the zoning ordinance, building code, or other municipal codes that exist on the site;

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(5) The development will not adversely affect matters regarding police protection, crime prevention, and security.
(b) All buildings, structures, landscaping, and other establishments shall be constructed in accordance with the approved drawings.
( ) The City Council shall review and make the final determination on all buildings exceeding fifty-five (55) feet in height or where required by express General Plan provisions.

27.30.010 PERMITTED USES .

The following uses are permitted provided that the use limitations contained in Section 27.30.025, "Permitted and special uses—Twenty-Fifth Avenue Improvement Area, " shall apply to properties in the Twenty-Fifth Avenue Improvement Area and the use limitations contained in Section 27.30.027, "Permitted and special uses—Hillsdale Station Area Plan Active Zone, " shall apply to properties in the Hillsdale Station Area Plan Active Zone:
(a) Animal grooming, provided no overnight boarding occurs on the site; (b) Bakeries;
(c) Barber shops and hair salons;
(d) Delicatessens;
(e) Dry cleaners, with customer service areas;
(f) Financial institutions, provided the ground floor area devoted to this use does not exceed 2,500 square feet per establishment;
(g) Health studios and spas;
(h) Laundromats;
(i) Libraries;
(j) Low Barrier Navigation Center above the ground floor in compliance with Government Code Sections 65660-65668 shall be considered a use by-right. "Use by right" shall have the same meaning as defined in subdivision (i) of Section 65583.2. Supportive housing shall also be in compliancecomply with Section 27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone.
(k) Newspaper publishing;

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(l) Offices, provided the ground floor area devoted to this use does not exceed 2,500 square feet per establishment;
(m) Photo processing;
(n) Picture framing;
(o) Real estate establishments;
(p) Residential units above the ground floor, subject tothat comply with the objective development standards for the R3 District "Minimum Development Standards" in SectionChapter

27.22.040 and affordable housing requirements as adopted by City Council resolution, unless otherwise specified in Chapter 27.29;
(q) Restaurants and accessory outdoor dining areas, without drive-through facilities; (r) Retail uses, such as, but not limited to, the following uses, subject to a maximum of 15,000 square feet of floor area per establishment except for supermarkets and drug stores:
(1) Antique shops,
(2) Apparel sales, tailoring and repair stores,
(3) Drug stores,
(4) Hardware and garden supply stores,
(5) Household furnishings,
(6) Pet shops,
(7) Supermarkets and grocery stores;
(s) Reverse vending machines, subject to regulations established in Chapter 27.69; (t) Schools and day care facilities;
(u) Travel agencies;
(v) Temporary buildings for construction purposes for a period not to exceed the duration of such construction;
(v)(w) Accessory uses to principle uses permitted; and
(w)(x) Other compatible uses as determined by the zoning administrator.

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27.32.010 PERMITTED USES .

The following uses are permitted:
(a) Permitted uses in the C1 district;
(b) Art galleries;
(c) Automotive accessory stores, excluding on-site service and repair of vehicles; (d) Boarding, lodging, or rooming houses;
(e) Catering services;
(f) Hotels and motels, including restaurant and meeting rooms; (g) Laundries;
(h) Medical and dental clinics, including laboratories; (i) Offices;
(j) Parking facilities;
(k) Printing, lithographing, or publishing establishments for newspaper, business cards, and other similar uses;
(l) Radio and television broadcasting stations;
(m) Reproduction services;
(n) Residential units, subject to above the ground floor that comply with the objective development standards within the R4 District "Minimum Development Standards" in SectionChapter 27.24.040 and affordable housing requirements as adopted by City Council resolution, except as otherwise specified in Chapter 27.29; (o) Retail uses, including incidental rental and repair; (p) Emergency Shelters ;
(q) Accessory uses to principle uses permitted; and
(r) Other compatible uses as determined by the Zoning Administrator.

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27.34.010 PERMITTED USES.

The following uses are permitted:
(a) Permitted uses in the C1 and C2 Districts provided; (a)(b) Residential units above the ground floor that residential uses are subject tocomply with the objective development standards for the R4 District "Minimum Development Standards" in Chapter 27.24 and affordable housing requirements as adopted by City Council resolution, except as otherwise specified in Chapter 27.29;
(b)(c) Ambulance service;
(c)(d) Automobile, boat, and truck sales and rental, including service and repair as accessory to the primary sales use, sales may occur on open lot; (d)(e) Automobile service, parts, and repairs, classified as minor motor vehicle repair in Section 27.04.325;
(e)(f) Car wash and detailing facilities, may not occur on open lot; (f)(g) Laboratories, research, experimental, and testing, provided no production or manufacturing of products occurs on the premises;
(g)(h) Accessory uses to principle uses permitted; and
(h)(i) Other compatible uses as determined by the Zoning Administrator.

27.36.010 PERMITTED USES.

The following uses are permitted:
(a) Permitted uses in the C1, C2, and C3 districts, except that residential uses, low barrier navigation centers, office uses on the properties along Palm Avenue between Twentieth and Twenty-fifth Avenues, and emergency shelters are prohibited; (b) Air conditioning and heating sales and service;
(c) Animal hospitals, which may include outdoor kennels;

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(d) Automotive parts, service, and repair classified as major motor vehicle repair in Section

27.04.320;
(e) Construction materials sales and lumberyards;
(f) Dry cleaning establishments, without customer service areas; (g) Linen, towel, diaper and other similar supply services; (h) Machinery sales, rental, and service, when conducted within an enclosed building; (i) Parcel delivery and receiving stations;
(j) Processing and assembly of goods determined by the Zoning Administrator to be compatible with adjacent uses, provided that space in a building does not exceed six thousand square feet of total floor area and basement space, not including stairwells or elevator shafts; and provided that such processing or assembly can be conducted without noise, vibration, order, dust or any other condition which might be disturbing to occupants of adjacent buildings. When manufacturing operations of the same or similar products demand space exceeding six thousand square feet, they shall be located in the M1 district.
(k) Sheet metal shops;
(l) Storage and warehousing;
(m) Tool, die and pattern making;
(n) Welding and iron work;
(o) Wholesale establishments;
(p) Accessory to principal uses permitted;
(q) Other compatible uses as determined by the Zoning Administrator.

27.38.020 PERMITTED USES.

Unless otherwise provided in this title, uses of building or land in this district and buildings hereafter erected, structurally altered or enlarged shall be limited to the following uses:
(a) Any use permitted in the C2 District, except an animal hospital and emergency shelters; provided that the use limitations contained in Section 27.38.110, Required Retail Frontage, shall

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apply to properties located within the required retail frontage area, as shown in the Downtown Plan.
(b) Multiple-family dwellingsResidential units, when located above the ground floor and as part of a mixed-use development, subject to CBD residential development standards and affordable housing requirements as adopted by City Council resolution; (c) Name plates and signs, as classified and regulated in Title 25. (d) Accessory uses which are necessary to the above-mentioned buildings and uses; including a maximum of 15% of floor area for ancillary office uses related to retail establishments located in the ground floor area of the district, and which are not visible from the street nor located within the retail storefront area.
(e) Any other use deemed similar in nature and operation that is determined by the Zoning Administrator to be compatible with existing and permitted uses allowable under the CBD Central Business District zoning, and is deemed desirable in serving the downtown core area and the community at large.

27.38.110 REQUIRED RETAIL FRONTAGE.
(a) Permitted Uses. The following uses are permitted on the ground floor subject to the requirements in Section 27.38.040, Conditions of Use, and the standards listed in subsection (c) below:
(1) Retail Sales. Uses principally engaged in retail sale or rental of consumer or household goods, including ancillary repair services. These retail uses are characterized by face-to-face transactions conducted by both the buyer and seller on the business premises. Retail businesses that conduct a majority of their sales (over 50%) via the Internet or other means of telecommunications are not considered "retail" for the purposes of this section.

27.44.020 PERMITTED USES.

The following uses shall be permitted:
(a) Administrative, executive, and professional offices, provided that the professional offices are limited to those professions listed in Section 5.24.160, and including similar professional occupations, and provided that no office of a veterinarian shall include an animal hospital or kennel.
(b) Accessory uses; including, but not limited to:

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(1) Sale of personal goods and services, when provided in the principal building, including, but not limited to, the following:
(A) Flower, food, and news vending;
(B) Printing and photocopying;
(C) Travel agencies;
(D) Ticket outlets;
(2) Other services which are customary appurtenant uses. (c) Health and recreation facilities.
(d) Public utility and service uses.
(e) Financial and business offices and related facilities. (f) Research laboratories (experimental and testing), provided no production or manufacturing occurs, and provided that all activities conform with the performance standards established for the M1 district.
(g) Residential units, subject to that comply with the objective development standards for the R3 District "Minimum Development Standards" in SectionChapter 27.22.040 and affordable housing requirements as adopted by City Council resolution, unless otherwise specified in Chapter

27.29. (h) Restaurants without drive-through facilities. (i) Schools and day care facilities.
(j) Temporary buildings for construction purposes for a period not to exceed the duration of such construction.
(j)(k) Warehousing, storage, and distribution facilities as accessory uses but not exceeding 10,000 square feet per establishment or not more than 60% of gross floor area per establishment. (k)(l) Other compatible uses as determined by the Zoning Administrator.

27.48.030 SPECIAL USES.

Reserved.Special uses in the E1 district may also be allowed, subject to approval of a special use permit.

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27.50 R6 DISTRICT – HIGH DENSITY MULTIPLE FAMILY RESIDENTIAL

27.50.005 PURPOSE
The R6 High Density Multiple Family District correlates with the Residential Medium II Land Use Designation and will provide for higher-density, multi-family residential development, including condominiums and apartments, in locations near mixed-use, office, and commercial areas.

27.50.010 PERMITTED USES
The following uses are permitted:
(a) Home daycare centers;
(b) Multiple family dwellings;
(c) Supportive housing in compliance with Government Code Sections 65650 - 65656, shall be considered a use by-right. "Use by right" shall have the same meaning as defined in Government Code Section 65583.2(i). Supportive housing shall also be in compliance with Section 27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone. (d) Licensed residential care facilities including group homes with six (6) or fewer residents, in addition to the caregiver's family, subject to the objective development standards that apply to other residential uses of the same type in the same zone. Certain licensed group homes shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9, as amended from time to time; and
(e) Residential care homes of any size regardless of State licensing; and (f) Temporary buildings for construction purposes for a period not to exceed the duration of such construction

27.50.020 SPECIAL USES.

Unless otherwise provided, the following uses may be permitted subject to the approval of a special use permit by the Planning Commission:
(a) Boarding and lodging houses;
(b) Nursing, hospice, and/or convalescent facility;

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(c) Residential care facility (excluding group homes) with seven (7) or more residents in addition to the caregiver. Certain licensed care facilities shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9; (d) Fraternity and sorority houses.

27.50.030 OFF-STREET PARKING
Off-street parking facilities shall be provided as required in the off-street parking code (Chapter 27.64).

27.50.040 DENSITY
The maximum density shall be 99 dwelling units per acre.

27.50.050 FLOOR AREA RATIO
The maximum floor area ratio of buildings and structures on a zoning plot shall be 3.5. [Alternative:
remove section and renumber accordingly.]

27.50.060 BUILDING HEIGHT
Building height limit for this district shall be a maximum of six stories and seventy-five (75) feet.

27.50.070 MINIUMUM YARDS
A rear yard setback of five (5) feet must be provided.

27.50.080 BUFFERS.

Buffers shall be provided as follows:
(a) If a side property line is adjacent to a R1 or R2 district, a buffer of ten (10) feet must be provided.
(b) If a rear property line is adjacent to R1 or R2 district, a buffer of fifteen (15) feet shall be provided.

27.50.090 OPEN SPACE
Residential development shall provide open space as follows:
(a) Private usable open space only: A minimum of 50 square feet of private usable open space per unit; or

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(b) Common usable open space only: A minimum of 75 square feet of common usable open space per unit; or
(c) Combination of private and common open space:

1. Private usable open space, at a minimum of 30 square feet per unit, and

2. Common usable open space equal to at least 150% of the difference between the private usable open space requirement and the proposed amount of private usable open space.

3. For example, a development proposing 30 square feet of private usable open space per unit would also have to provide 30 square feet of common usable open space per unit. [Formula Example: (50 square feet – 30 square feet) * 150% = 30 common usable square feet.]

27.51 R7 DISTRICT – HIGH DENSITY MULTIPLE FAMILY RESIDENTIAL

27.51.005 PURPOSE.

The R7 Multiple Family Dwellings District correlates with the Residential High Land Use Designation and is intended to provide for high-density multi-family residential development, including condominiums and apartments. The R7 District is intended for development in Downtown San Mateo, in proximity to Caltrain stations, and along major transit corridors, such as El Camino Real.

27.51.010 PERMITTED USES.

The following uses are permitted:
(a) Home daycare centers;
(b) Multiple-family dwellings;
(c) Supportive housing in compliance with Government Code Sections 65650 - 65656, shall be considered a use by-right use. "Use by right" shall have the same meaning as defined in Government Code Section 65583.2(i). Supportive housing shall also be in compliance with Section

27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone; (d) Licensed residential care facilities including group homes with six (6) or fewer residents, in addition to the caregiver's family, subject to the objective development standards that apply to other residential uses of the same type in the same zone. Certain licensed group homes shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9, as amended from time to time; and

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(e) Temporary buildings for construction purposes for a period not to exceed the duration of such construction.

27.51.020 SPECIAL USES.

Unless otherwise provided the following uses may be permitted subject to the approval of a special use permit by the Planning Commission:
(a) Boarding and lodging houses;
(b) Nursing, hospice, and/or convalescent facility;
(c) Residential care facility (excluding group homes) with seven (7) or more residents in addition to the caregiver. Certain licensed care facilities shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9;
(d) Fraternity and sorority houses.

27.51.030 OFF-STREET PARKING
Off-street parking facilities shall be provided as required in the off-street parking code (Chapter 27.64).

27.51.040 DENSITY
The maximum density shall be 130 dwelling units per acre.

27.51.050 FLOOR AREA RATIO
The maximum floor area ratio of buildings and structures on a zoning plot shall be 4.0. [Alternative:
remove section and renumber accordingly.]

27.51.060 BUILDING HEIGHT
Building height limit for this district shall be a maximum of eight stories and one hundred (100) feet.

27.51.070 MINUMUM YARDS
A rear setback of five (5) feet must be provided.

27.51.080 BUFFERS.

Buffers shall be provided as follows:
(a) Side. If a side property line is adjacent to a R1 or R2 district, a buffer of ten (10) feet must be provided.

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(b) Rear. If a rear property line is adjacent to R1 or R2 district, a buffer of fifteen (15) feet shall be provided.

27.51.090 OPEN SPACE
Residential development shall provide open space as follows:
(a) Private usable open space only: A minimum of 50 square feet of private usable open space per unit; or
(b) Common usable open space only: A minimum of 75 square feet of common usable open space per unit; or
(c) Combination of private and common open space:

1. Private usable open space, at a minimum of 30 square feet per unit, and

2. Common usable open space equal to at least 150% of the difference between the private usable open space requirement and the proposed amount of private usable open space.

3. For example, a development proposing 30 square feet of private usable open space per unit would also have to provide 30 square feet of common usable open space per unit. [Formula Example: (50 square feet – 30 square feet) * 150% = 30 common usable square feet.]

27.52 MU3 DISTRICT – MEDIUM DENSITY MIXED-USE

27.52.005 PURPOSE
The MU3 Medium Density Mixed-Use District is intended to allow medium-density, mixed-use buildings that provide a mix of commercial, office, and/or residential uses within the same site or building as well as individual commercial, office, or residential uses. The MU3 District is intended to allow a mix of uses near other mixed-use, commercial, or residential areas, and within Downtown San Mateo.

27.52.010 PERMITTED USES
The following uses are permitted:
(a) Accessory uses to principal uses permitted;
(b) Animal grooming, provided no overnight boarding occurs on the site;

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(c) Art galleries;
(d) Automotive accessory stores, excluding on-site service and repair of vehicles; (e) Boarding, lodging, or rooming houses;
(f) Emergency Shelters;
(g) Financial institutions;
(h) Health studios and spas;
(i) Hotels and motels, including restaurant and meeting rooms; (j) Libraries;
(k) Low Barrier Navigation Center above the ground floor in compliance with Government Code Sections 65660-65668 shall be considered a use by-right. "Use by- right" shall have the same meaning as defined in subdivision (i) of Section 65583.2. Supportive housing shall comply with Section 27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone.
(l) Medical and dental clinics, including laboratories; (m) Offices;
(n) Personal Services;
(o) Real estate establishments;
(p) Multi-family residential units;
(q) Supportive housing in compliance with Government Code Sections 65650 - 65656, shall be considered a use by-right use. "Use by right" shall have the same meaning as defined in Government Code Section 65583.2(i). Supportive housing shall also be in compliance with Section

27.94.020 By-Right Residential Use Requirements and subject only to those objective development standards and policies that apply to other multifamily development within the same zone. (r) Licensed residential care facilities including group homes with six (6) or fewer residents, in addition to the caregiver's family, subject to the objective development standards that apply to other residential uses of the same type in the same zone. Certain licensed group homes shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9, as amended from time to time;

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(s) Restaurants, catering services, and accessory outdoor dining areas, without drive- through facilities;
(t) Retail uses, including ancillary rental and repair; (u) Schools and day care facilities;
(v) Temporary buildings for construction purposes for a period not to exceed the duration of such construction; and
(w) Other compatible uses as determined by the Zoning Administrator.

27.52.020 SPECIAL USES
The following uses may also be permitted subject to approval of a special use permit, provided that the use limitations contained in Section 27.30.025, "Permitted and special uses—Twenty-Fifth Avenue Improvement Area," shall apply to properties in the Twenty-Fifth Avenue improvement Area and the use limitations contained in Section 27.30.027, "Permitted and special uses—Hillsdale Station Area Plan Active Zone," shall apply to properties in the Hillsdale Station Area Plan Active Zone:
(a) Alternative financial services, subject to the restrictions set forth in Section 27.30.020; (b) Automobile gasoline service station;
(c) Automotive sales;
(d) Clubs, lodges, and fraternal organizations;
(e) Parking facilities, as a principal use;
(f) Residential care facility (excluding group homes) with seven (7) or more residents in addition to the caregiver. Certain licensed care facilities shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9;
(g) Religious institutions; and
(h) Other compatible uses as determined by the Zoning Administrator subject to the granting of a special use permit.

27.52.030 CONDITIONS OF USE
All uses, except residences, shall be subject to the following conditions:

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(a) Manufacturing, processing, or treatment of products which is clearly ancillary and essential to the retail business may be conducted on the same premises; (b) Uses shall not generate odor, dust, smoke, noise, vibration, toxic wastes or other emissions which constitute nuisances;
(c) Exterior signs shall pertain only to a use conducted within the building; (d) Uses shall be conducted wholly within an enclosed building, except as authorized by special use permit, or as previously authorized, or if the use is legally nonconforming.

27.52.040 OFF-STREET PARKING AND LOADING.

Off-street parking facilities shall be provided as required in the off-street parking code (Chapter

27.64).

27.52.050 MAXIMUM FLOOR AREA RATIO
The maximum floor area ratio of buildings and structures on a zoning plot shall be 4.0. [Alternative - add the following text: “Floor area ratio shall only apply to nonresidential portions of a building.”]

27.52.060 DENSITY
The minimum density for projects with five or more residential units shall be consistent with section 27.02.230. The maximum density for residential developments shall be 99 dwelling units per acre.

27.52.070 BUILDING HEIGHT
Building height shall not exceed the following:
(a) A maximum of four stories and fifty (50) feet for a nonresidential building; (b) A maximum of six stories and seventy-five (75) feet for a residential building or mixed-use building with residential uses.

27.52.080 MINUMUM YARDS
A rear yard of not less than five (5) feet shall be provided.

27.52.090 BUFFERS
Buffers shall be provided as follows:

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(a) Side. If a side property line is adjacent to a R1 or R2 district, a buffer of ten (10) feet must be provided.
(b) Rear. If a rear property line is adjacent to R1 or R2 district, a buffer of fifteen (15) feet shall be provided

27.52.100 OPEN SPACE
Residential development shall provide open space as follows:
(a) Private usable open space only: A minimum of 50 square feet of private usable open space per unit; or
(b) Common usable open space only: A minimum of 75 square feet of common usable open space per unit; or
(c) Combination of private and common open space:

1. Private usable open space, at a minimum of 30 square feet per unit, and

2. Common usable open space equal to at least 150% of the difference between the private usable open space requirement and the proposed amount of private usable open space.

3. For example, a development proposing 30 square feet of private usable open space per unit would also have to provide 30 square feet of common usable open space per unit. [Formula Example: (50 square feet – 30 square feet) * 150% = 30 common usable square feet.]

27.52.110 SETBACK AND BUILD-TO-LINE STANDARDS FOR EL CAMINO REAL.

The regulations governing setback and build-to-line standards for El Camino Real in the C1 district shall apply.

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27.53 MU4 DISTRICT – HIGH DENSITY MIXED-USE

27.53.005 PURPOSE.

The MU4 High Density Mixed-Use District is intended to allow high-density mixed-use buildings that provide a mix of commercial, office, and/or residential uses within the same site or building as well as individual commercial, office, or residential uses. The MU4 District is intended to allow a mix of uses near major streets, train stations, and shopping centers, and within Downtown San Mateo.

27.53.010 PERMITTED USES.

The following uses are permitted:
(a) Permitted uses in the MU3 District.

27.53.020 SPECIAL USES.

The following uses may also be permitted subject to approval of a special use permit, provided that the use limitations contained in Section 27.30.025, "Permitted and special uses—Twenty-Fifth Avenue Improvement Area, " shall apply to properties in the Twenty-Fifth Avenue improvement Area and the use limitations contained in Section 27.30.027, "Permitted and special uses—Hillsdale Station Area Plan Active Zone, " shall apply to properties in the Hillsdale Station Area Plan Active Zone:
(a) Alternative financial services, subject to the restrictions set forth in Section 27.30.020; (b) Automobile gasoline service station;
(c) Automotive sales;
(d) Clubs, lodges, and fraternal organizations;
(e) Parking facilities, as a principle use;
(f) Residential care facility (excluding group homes) with seven (7) or more residents in addition to the caregiver. Certain licensed care facilities shall be subject to separation requirements pursuant to Health and Safety Code Section 1267.9; (g) Religious institutions; and
(h) Other compatible uses as determined by the Zoning Administrator subject to the granting of a special use permit.

27.53.030 CONDITIONS OF USE

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All uses, except residences, shall be subject to the following conditions:
(a) Manufacturing, processing, or treatment of products which is clearly ancillary and essential to the retail business may be conducted on the same premises; (b) Uses shall not generate odor, dust, smoke, noise, vibration, toxic wastes or other emissions which constitute nuisances;
(c) Exterior signs shall pertain only to a use conducted within the building; (d) Uses shall be conducted wholly within an enclosed building, except as authorized by special use permit, or as previously authorized, or if the use is legally nonconforming.

27.53.040 OFF-STREET PARKING AND LOADING
Off-street parking facilities shall be provided as required in the off-street parking code (Chapter

27.64).

27.53.050 MAXIMUM FLOOR AREA RATIO
The maximum floor area ratio of buildings and structures on a zoning plot shall be 4.5. [Alternative - add the following text: “Floor area ratio shall only apply to nonresidential portions of a building.”]Floor area ratio shall only apply to nonresidential portions of a building.

27.53.060 DENSITY
The minimum density for projects with five or more residential units shall be consistent with section 27.02.230. The maximum density for residential developments shall be 130 dwelling units per acre.

27.53.070 BUILDING HEIGHT
Building height shall not exceed the following:
(a) A maximum of five stories and sixty-five (65) feet for a nonresidential building; (b) A maximum of eight stories and one-hundred (100) feet for a residential building or mixed-use building with residential uses.

27.53.080 MINUMUM YARDS
A rear yard of not less than five (5) feet shall be provided.

27.53.090 BUFFERS

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Buffers shall be provided as follows:
(a) Side. If a side property line is adjacent to a R1 or R2 district, a buffer of ten (10) feet must be provided.
(b) Rear. If a rear property line is adjacent to R1 or R2 district, a buffer of fifteen (15) feet shall be provided.

27.53.100 OPEN SPACE
Residential development shall provide open space as follows:
(a) Private usable open space only: A minimum of 50 square feet of private usable open space per unit; or
(b) Common usable open space only: A minimum of 75 square feet of common usable open space per unit; or
(c) Combination of private and common open space:

1. A combination of private usable open space, at a minimum of 30 square feet per unit, and

2. Common usable open space equal to at least 150% of the difference between the private usable open space requirement and the proposed amount of private usable open space.

3. For example, a development proposing 30 square feet of private usable open space per unit would also have to provide 30 square feet of common usable open space per unit. [Formula Example: (50 square feet – 30 square feet) * 150% = 30 common usable square feet.]

27.53.110 SETBACK AND BUILD-TO-LINE STANDARDS FOR EL CAMINO REAL.

The regulations governing setback and build-to-line standards for El Camino Real in the C1 district shall apply.

27.71.020 Scope.
(a) This chapter shall apply as a minimum for all projects requiring approval of a planning application pursuant to Section 27.08.010, except for single-family dwelling design review and 100% affordable housing development applications. Landscaping not subject to this chapter shall

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be governed by the provisions of Chapter 13.40. The Zoning Administrator may determine that minor additions or changes to existing property are not reasonably related to the purpose of this chapter and may be exempt from the requirements of this chapter.

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June 23, 2026

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