Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Use of District-Discretionary Measure K Funds - Supervisorial District 5
RECOMMENDATION:
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Measure K: Adopt a resolution authorizing a one-time grant of district-discretionary Measure K funds, not to exceed $75,000, to the City of Daly City for the third annual Top of the Hill Street Festival that will serve as an economic activation for small businesses in the Daly City Top of the Hill neighborhood, providing an exception to the criteria for district-discretionary Measure K funds to allow repeat funding within the current budget cycle, and authorizing the County Executive or designee, to execute the grant agreement.
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BACKGROUND:
Measure K is the half-cent general sales tax initially approved by San Mateo County voters in November 2012 and extended in November 2016 for a total of thirty years.
The Board of Supervisors held study sessions on Measure K expenditures and approved funds for the fiscal year (FY) 2026-27 budget cycle, divided equally among the five supervisorial districts, for one-time district-discretionary needs and projects. District 5 has submitted a request to use a portion of its district-discretionary Measure K funds as shown below and described in the Project Summary section of this memorandum:
|
District/Project |
Amount |
|
District 5 (Supervisor David J. Canepa) - City of Daly City: Top of the Hill Festival |
$75,000 |
This item is consistent with the criteria for district-discretionary Measure K funds approved by the Board in December 2018, with the following exception: the proposed grant, if approved, would be the second grant of district-discretionary funding to the same organization sponsored by District 5, within the current FY 25-27 budget cycle. The exception from the criteria is necessary in this instance because the demand and participation by San Mateo County residents for this event has increased dramatically year upon year, necessitating additional support to maintain and expand offerings at the event. District 5 indicates that this organization is either a public agency operating within the County or a nonprofit organization registered and in good standing with the California Attorney General. District 5 indicates that the sponsoring Board Member, member’s family, and member’s supervisorial staff do not serve as an officer, director, or play a policy role for the grantee organization.
PROJECT SUMMARY:
This is a request to authorize a grant to the City of Daly City, and resulting grant agreement, in an amount not to exceed $75,000, for the third annual Top of the Hill Festival on October 17, 2026, that will serve as an economic activation event for small businesses in the northern segment of the Mission Street Corridor, known as the Top of the Hill neighborhood. The County Executive’s Office will administer and manage the proposed agreement.
The City has historically been supportive of efforts to revitalize the Mission Street Corridor, through the past establishment of a Redevelopment Area that was ultimately dissolved by the State of California in 2011, to the most recent rezoning of the corridor for Commercial Mixed-Use that streamlines the development of higher density development.
A critical piece to encouraging efforts to revitalize a community is through placemaking, community engagement, and bringing attention to the long-standing commercial neighborhood that is already there. As an economic development strategy to support local businesses in the northern segment of the Mission Street Corridor, it is critical to bring residents and visitors from across San Mateo County and beyond to the neighborhood to activate and invigorate the area. A street fair in the neighborhood is a catalyst for such an endeavor, so the third annual Top of the Hill Festival - the Bay Area’s Top Festival - is returning this year on Saturday, October 17th, from 12 PM to 6 PM.
The festival advances the City’s economic development goals, strengthens community partnerships, promotes local businesses, and provides residents throughout San Mateo County with access to valuable public resources and services. What began as a local celebration has evolved into a regional destination that highlights Daly City’s cultural diversity, entrepreneurial spirit, and community pride while generating measurable economic activity for local businesses.
Following a successful debut in 2024 that welcomed 10,000 attendees from all over the state, followed by a resounding 20,000 attendees in 2025, the investment of Measure K funds has proven to be a critical funding source to not only stimulate the economic vitality in an iconic neighborhood, but also provide a signature event that reaches tens of thousands throughout San Mateo County and beyond. With over two dozen community partners including San Mateo County Health’s Health Coverage Unit (HCU), San Mateo County Department of Sustainability, CORA, Felton Institute, and San Bruno Mountain Watch, hundreds of local merchants, and significant media coverage, the festival has become a powerful platform for increasing visibility, customer engagement, and brand awareness in the heart of Daly City. The Top of the Hill Festival has created a pathway that is putting Daly City, one of San Mateo County’s biggest cities on the peninsula, on the map as a destination city.
Festival attendees patronize nearby restaurants, retail establishments, and service providers before, during, and after the event, extending the economic benefits well beyond the festival grounds. Importantly, participation in the festival is not limited to Daly City businesses. The event provides opportunities for businesses, artisans, food vendors, and entrepreneurs, and nonprofit organizations from throughout San Mateo County to showcase their products and services to thousands of attendees. Additionally, participation of San Mateo County agencies and initiatives are prioritized to increase visibility and awareness. This regional participation strengthens economic collaboration across the County while reinforcing Daly City’s role as a welcoming destination for commerce, culture, public resources, and community engagement.
For 2026, the City is again expanding the event’s footprint and outreach, expecting 50,000 attendees and drawing visitors from across San Mateo County, the greater Bay Area, and beyond. This year’s key event features include:
1. Free Admission: Festivalgoers of all ages can enjoy this free community event.
2. Wider Community Engagement: The City has contracted with Comcast on a comprehensive television and streaming advertising campaign to promote the festival. The campaign will run from August 24, 2026, through October 16, 2026, and will include traditional television, premium live sports programming, and streaming television advertising throughout the Mid-Peninsula and South Peninsula markets.
3. Live Entertainment: Engaging performances by local musicians, dancers, and other distinguished performers to entertain and delight festivalgoers throughout the day with a Main Stage at the intersection of Mission Street and John Daly Boulevard. This year’s event will feature a Community Stage at the intersection of Mission Street and Evergreen Avenue to spotlight and showcase local and regional community talent.
4. Public-Transit Accessible: Top of the Hill, Daly City is conveniently located near the Daly City BART Station. Festivalgoers are encouraged to take public-transit and ride-shares to participate in this event, as parking is limited in the neighborhood. Clipper offers onsite assistance with the Clipper mobile application. The City is partnering with BARTable and SamTrans to promote this event.
5. Resource Tables: Non-profit and community organizations will be available to provide pertinent resource information and giveaways to attendees, such as the San Mateo County Office of Community Affairs, San Mateo County Department of Sustainability, Peninsula Conflict Resolution Center, Felton Institute, CORA, and ALLICE, to name a few.
6. Free Medical Screenings & Vaccinations: Attendees can take advantage of free medical screenings and vaccinations offered by AHMC Seton Mobile Clinic.
7. Onsite Medi-Cal Enrollment: San Mateo County Health’s Health Coverage Unit (HCU) will provide onsite Medi-Cal enrollment.
8. Vendor Market: In addition to the Top of the Hill brick and mortars that will be activated by the attendees, a curated marketplace where local artisans, craftsmen, and entrepreneurs can sell their wares, foster economic activity and encourage entrepreneurship will be available. The Vendor Market will be located on Mission Street at the Top of the Hill area and will prioritize Daly City businesses first and then extend to neighboring cities across San Mateo County and the greater Bay Area, stimulating economic vitality throughout the County and beyond.
9. Food Trucks & Food Booths: In coordination with the San Mateo County Health’s Environmental Health Services, an assortment of food trucks and food booths will offer a variety of cuisines to attendees and will prioritize Daly City businesses first and then extend to neighboring cities across San Mateo County and the greater Bay Area, further stimulating economic vitality throughout the County and beyond. Last year, almost every participating food vendor sold out, highlighting the popularity of the diverse cuisine offered at this event.
10. Certified Farmers Marker: Farm-fresh produce brought directly from San Mateo County growers to festivalgoers to promote health and sustainability.
11. Interactive Activities: Engaging and interactive activities for all ages, including physical therapy and massages, fitness and wellness workshops, martial arts and self-defense demonstrations, and games, fostering community engagement and participation. Several Kids Zone will be located across the Festival footprint, featuring a Hoop Bus, dunk tank, bounce house, live characters, balloon artist, face painting, and more. A new feature this year is the Sensory Zone-a quiet, comfortable space designed to support attendees with sensory sensitivities and other special needs by providing a peaceful retreat whenever needed.
12. Historical Exhibits & Cultural Performances: The Daly City History Guild & Museum is in the center of the Festival footprint and has seen their largest number of visitors during this event, featuring displays showcasing the Daly City’s history, as well as the rich cultural heritage and diversity of our community, promoting understanding and appreciation among attendees.
13. Car Show: Luxury and vintage car show will line Mission Street, near the Community Stage.
As a free community event, the City will not be collecting admission costs from attendees and will be relying on local funds and sponsorships to purchase goods and services-including live entertainment, stage and sound equipment, porta potties, picnic tables and tents, and transportation shuttles-to host this economic development event.
District-discretionary Measure K funding for this organization has previously been provided as listed below:
• On August 12, 2025, the Board of Supervisors approved a $75,000 Measure K grant for the second annual Top of the Hill Street Festival.
• On August 27, 2024, the Board of Supervisors approved a $35,000 Measure K grant to support the inaugural Top of the Hill Street Festival.
District 5 has informed the grantee organization that this grant is one-time only, and that the grantee organization will need to find other sources of funding going forward. The grantee organization will use the Measure K grant as follows:
The cost for marketing on SamTrans, stage and sound equipment, and picnic tables and tents will fully exhaust the Measure K grant request, as depicted below:
|
Description |
Cost |
|
Comcast Advertising |
$9,999.99 |
|
SamTrans Marketing |
$11,400.00 |
|
Portable Restrooms and Handwashing Stations, Picnic tables and tents |
$16,273.13 |
|
Main & Community Stages (stage and sound equipment) |
$49,400.00 |
|
|
$87,073.12 |
Total Measure K Request: Not to Exceed $75,000
The release of funds will be contingent on the execution of an agreement providing for the County’s confirmation of the expenditure of funds for the purposes stated herein.
The County will disburse the funds to the following organization for the purposes described above:
Organization Name: City of Daly City
333 90th Street, Daly City, CA 94015
<https://www.dalycity.org/>
Primary Contact Name: Thomas J. Piccolotti, City Manager
333 90th Street, Daly City, CA 94015
tpiccolotti@dalycity.org
650.991.8201
PERFORMANCE MEASURES:
|
Description |
Target |
|
Host the 3rd Annual Daly City Top of the Hill Street Festival on October 17, 2026, including marketing on SamTrans and via Comcast, stage and sound equipment, portable restrooms and handwashing stations, and picnic tables and tents. |
Complete |
The County Attorney’s Office has reviewed and approved the agreement and resolution as to form.
COMMUNITY IMPACT:
The festival provides meaningful opportunities for local businesses, entrepreneurs, nonprofits, and County agencies to connect with residents while increasing visibility and customer engagement. By activating the Top of the Hill neighborhood through placemaking, cultural programming, and community partnerships, the event helps revitalize one of the County's historic commercial districts. Expanded accessibility features, free health services, public resources, and family-friendly activities ensure the festival benefits residents of all ages and backgrounds. This investment will continue to position Daly City as a regional destination while generating lasting economic and community benefits throughout San Mateo County.
FISCAL IMPACT:
There are sufficient Measure K funds for this specific FY 2026-27 Measure K request. These funds are budgeted in the Non-Departmental Services FY 2026-27 Approved Recommended Budget.