Daly City Council approves midcycle budget adjustments, energy efficiency contract and several administrative items

Daly City Council on June 8 handled a broad set of operational and financial items: council adopted midcycle adjustments to the FY2027 operating and capital budgets, awarded an energy‑efficiency design‑build contract with financing, approved notices of lien for unpaid rental business license taxes, reappointed volunteers to the Bicycle & Pedestrian Advisory Committee, and adopted ordinance changes for boards and commissions.

Budget midcycle (Item 10): Assistant City Manager Tim Nevin and Assistant Director Amanda Halber outlined revenue and expenditure updates for FY27, recommending approximately $3.23M in increased citywide operating revenues and $2.995M in operating expenditures overall, with general fund revenues rising roughly $2.9M and general fund expenditures increasing by about $1.45M due to updated sales‑tax forecasts, transfers and one‑time items. Council discussed gas tax usage for streets and a $35,000 remote‑holds locker for Cerromonte Library; the council approved the midcycle adjustments on a voice vote.

Energy efficiency financing and contract award (Item 15): Staff proposed consolidated capital projects and a design‑build award to Caesar Co. Energy Solutions for HVAC, LED lighting and related measures at four city facilities and recommended a 10‑year tax‑exempt equipment lease purchase with Webster Public Finance not to exceed $2,596,150 at a fixed rate (about 4.11%). Gabe Johnson (Caesar Co.) said blended energy conservation measures yield payback over roughly 20 years and projected net long‑term savings (he cited roughly $2M at 20 years and ~$4.4M at 30 years after subtracting project costs). Council approved awarding the contract and the financing resolution.

Notices of lien (Item 14): Staff presented a public hearing recommending notices of lien and special assessments to county property tax rolls for specified rental properties with unpaid business license rental taxes; staff estimated recoverable revenue of about $161,320. No members of the public spoke and the council approved the assessments by roll call.

Other actions: Council reappointed four BPAC members for two‑year terms, confirmed multiple commission appointments, and adopted Ordinance No. 1492 bringing code changes for boards and commissions. Several council members and the chief asked staff to return with follow‑up metrics: ALPR operational stats, energy project savings schedule and details on how the midcycle adjustments affect future budgets.

Votes at a glance:
- Item 8 (BPAC reappointments): approved (voice vote).
- Item 10 (FY27 midcycle operating/CIP adjustments): approved (voice vote).
- Item 12 (Axon ALPR amendment/pilot): approved (roll call; 5–0).
- Item 14 (Notice of lien and special assessment): approved (roll call; 5–0).
- Item 15 (Energy efficiency project award and financing): approved (roll call/voice; motion carried).
- Item 16 (UUT streaming report acceptance): approved (roll call; 5–0).
- Ordinance 1492 (second reading adoption): adopted (roll call; 5–0).

What happens next: staff will implement midcycle budget adjustments, place initial funding for approved capital work in accounts, begin the energy‑efficiency project procurement and financing steps, place notices for unpaid taxes with the county, and report back on metrics requested by council.

Procedural note: multiple items were approved unanimously by the five council members present; several items were informational or required future administrative steps.