Campbell Accepts $268,389 Library Reimbursement, Wants Watch on $87,000 Surplus

Campbell's library renovation is no longer short of money. The question now is where the leftover goes. On Sept. 15, 2026, the City Council accepted a $268,389 reimbursement from the Santa Clara County Library District and told staff to report back on roughly $87,000 in surplus that could be needed for an unfinished police building. The council also extended its interim design standards for state-mandated lot splits and approved $835,000 in street and signal work. No recorded vote went against any item.

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• $268,389 library reimbursement accepted, with council demanding updates on the $87,000 overage
• Interim SB 9 design standards extended 10 months and 15 days after two members disclosed conflicts
• Holmes Avenue resident calls state lot-split law "overreach." Officials say their hands are tied
• City's $67M investment portfolio earns over 4%, beats its benchmark by about 40 basis points
• $335,000 San Jose paving share and $500,000 VTA signal grant win approval

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Library Surplus Collides With Police Building Unknowns

The basics: Measure O, Campbell's voter-approved bond, funded the Campbell Library Renovation Project. During construction, the Santa Clara County Library District asked for changes to electrical, structural, security and audiovisual systems and to the children's play area. Those changes are what the district is now paying back.

Why it matters: The reimbursement closes a hole of roughly $181,000 in the library budget. It also creates a small surplus that two capital priorities may compete for.

Where things stand: "The reimbursement eliminates the project's shortfall in the library project budget and leaves a remaining balance of about $87,000," said Public Works Director Amy Olay. Staff proposed returning that balance to the Measure O fund for Civic Center perimeter and offsite improvements.

Olay would not promise the money would end up there. A councilmember asked whether the surplus would go to exterior work. "There's no guarantee. There isn't, because construction is still underway with the Phase 2," Olay said. Phase 2 is the renovation of the former police space, and she said new issues are still emerging there.

The other side: Council members pushed to protect the site work. "I really would like to see some priority given to the excess being applied to the remaining site improvements," said one councilmember. Mayor Daniel E. Furtado also asked for periodic updates. Staff said it intends to keep the council informed and to report on cost accounting as the project continues.

Decisions and stakeholder impacts: Vice Mayor Anne Bybee moved to accept the reimbursement and authorize the finance director to make the budget adjustment. Councilmember Sergio Lopez seconded. Furtado then added that "the motion would include the request by the council for further reporting." The motion as spoken cited $200,000. Staff's figure was $268,389.

• Vote: For: 4 (Lopez, Hines, Bybee, Furtado), Against: 0. Councilmember Elliot Scozzola was not called in the roll call.

Library patrons get a finished project with its budget balanced. Civic Center neighbors waiting on perimeter improvements depend on how Phase 2 costs develop.

What's next: Staff will bring updates to the council as Phase 2 construction proceeds. Watch whether the $87,000 stays with site improvements or shifts to the police building.

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Lot-Split Rules Extended, but Sacramento Holds the Cards

The basics: SB 9 is the state law that allows lot splits and additional homes on single-family parcels. Campbell adopted interim ordinance 26-2354 on Aug. 3. It applies local design standards to new homes built under SB 9, but not to additions. Without action, it would have expired Sept. 17.

Why it matters: The extension prevents a gap in Campbell's design standards. State legislation may soon force further changes.

Where things stand: "The extension before you would extend the ordinance for a period of 10 months and 15 days, the maximum allowed by law," said Planner Daniel Fama. He noted that the Legislature has sent Assembly Bill 2601 to the governor. If signed, it would require more local revisions. Staff expects to return later this year or early next year.

A procedural squeeze: "In order for this item to potentially pass, it requires a 4/5 vote of the council," said Furtado. Two members disclosed conflicts. Furtado owns property affected by the ordinance's historic-property provisions. Councilmember Terry Hines lives in a home owned by a family trust. With two members conflicted, the council could not reach four votes, so it invoked the rule of necessity. That legal doctrine lets a conflicted official participate when a required vote is otherwise impossible. Straws were drawn, and Furtado stayed in as the voting member.

No one spoke during public comment on the item, and the council held no discussion.

• Vote: For: 4 (Lopez, Scozzola, Bybee, Furtado), Against: 0, Recused: Hines. A separate vote to waive further reading also passed 4-0.

The other side: Earlier in the meeting, a Holmes Avenue resident said two homes near her are slated for demolition and could be replaced with multiple units under state law. She cited parking, strain on utilities and neighborhood change. "It's complete overreach for what we signed up for," she said.

Furtado said he would refer her concerns to staff, particularly the question of how vacant lots are defined. He added that the law leaves the city no discretion. "It is a ministerial act. It is required," he said. He explained that the law bars notice to neighbors and bars referral to the Planning Commission or council. Another councilmember told residents to press their state representatives, saying, "ultimately this falls in the hands of Sacramento."

Decisions and stakeholder impacts: Homeowners pursuing SB 9 projects keep a predictable set of design rules. Neighbors like the Holmes Avenue resident gain no new say. City officials are directing that frustration toward state lawmakers.

What's next: Staff will return with revisions, particularly if AB 2601 is signed.

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Portfolio Tops $67M as Policy Gets Minor Tweaks

Why it matters: The city's annual investment policy update governs how Campbell's reserves are invested. This year's changes are small but give staff more room to act if interest rates move.

Where things stand: As of June 30, 2026, "the city's investment portfolio amounted to just over $67 million," said Assistant Finance Director Narit Vong. The portfolio is earning more than 4%.

The council approved two changes, which the Finance Subcommittee reviewed on Aug. 24:

• The maximum maturity for commercial paper rises from 270 to 397 days.
• The policy's sunset date moves to 2031, consistent with state code.

"We've continued to outperform the benchmark by about 40 basis points," said Aaron, a consultant with Chandler, the city's investment advisor. He said the portfolio also beat LAIF and CAMP, two state-level investment pools for public agencies. He told the council he expected a Federal Reserve rate hike the next day.

Decisions and stakeholder impacts: No one spoke during public comment.

• Vote: For: 4 (Lopez, Hines, Bybee, Furtado), Against: 0. Scozzola was not called.

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Paving and Signals: $835,000 in Street Work

Where things stand: The council agreed to pay San Jose up to $335,000 for resurfacing McCoy and Olympia avenues. Olay said Campbell regularly coordinates paving with San Jose and Los Gatos to get better pricing and more consistent maintenance.

The work is nearly finished. Only striping and sharrows remain. San Jose went ahead before Campbell's approval, trusting the city to reimburse it. Before resurfacing, McCoy had a pavement condition index of 36 and Olympia had 52. "The pavement management index of both of those roads is abominably low when we're aiming for like a 70%," said Furtado.

Hines used the item to renew what he called "my annual request to have the $200,000 payment to San Jose, maybe someday they can consider that," a reference to a separate payment he wants San Jose to reciprocate on.

• Vote: Moved by Hines, seconded by Lopez. For: 4 (Lopez, Hines, Bybee, Furtado), Against: 0. Scozzola was not called.

Signal upgrades: The council also accepted a $500,000 VTA grant that requires no local match. It comes from the voter-approved $10 annual vehicle registration fee program, and the VTA Board selected Campbell's project on May 7. The grant pays for:

• 40 to 45 new pedestrian countdown signals
• Accessible push buttons at about 33 intersections, bringing them into ADA compliance
• Controller upgrades at six intersections not covered by the separate TRIPS project
• Retiming of nine signals
• Traffic modeling software

One councilmember asked whether this was the same as earlier bike-related proposals funded through TFCA, a regional clean-air grant program. Staff said it is a separate project. "Great job to our staff for being ready to take advantage of those opportunities when they arise," said Lopez.

• Vote: Moved by Lopez, seconded by Hines. For: 4 (Lopez, Hines, Bybee, Furtado), Against: 0. Scozzola was not called.

What's next: The grant-funded signal work must be finished by Dec. 31, 2028.

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Minor Items

• Consent calendar: Items 7.1 through 7.6 passed 5-0. They include water tower lighting for breast cancer awareness.
• Theater Use Policy: The council updated cancellation fees for ticketed rentals and limited complimentary tickets. It also dropped consignment ticket language because the new ticketing software cannot handle it. The changes take effect Sept. 16, 2026. Vote: 4-0.
• Heritage Theater shades: The council approved Preservation Enhancement Fund money to replace six of 10 blackout shades. The Friends of the Heritage Theater approved a donation for two others. Vote: 4-0.
• IT Professionals Day: The council recognized the city's information technology staff.
• Regional reports: Lopez reported that VTA approved a design contract of nearly $100M for BART Phase 2. Hines reported that vehicle impact fees can now be used through West Valley Recycling.

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Looking Ahead

• Sept. 16: State of the City at Orchard City Banquet Hall
• Sept. 19: Los Gatos Creek cleanup
• Oct. 3: Campbell on Sale citywide garage sale

The city also has openings on its boards and commissions.