Agenda packet — East Palo Alto City Council, June 7, 2022 (part 1 of 2)

East Palo Alto City Council June 7, 2022 Agenda Page 1 of 5

EAST PALO ALTO CITY COUNCIL

REGULAR MEETING AND JOINT SUCCESSOR

AGENCY BOARD SPECIAL AGENDA
June 7, 2022, 6:30 p.m.

EPA Government Center
2415 University Ave, First Floor
East Palo Alto, CA 94303
NOTICE
This City Council meeting will be conducted in accordance with City of East Palo Alto Resolution adopted in accordance with Assembly Bill 361. All members of the City Council will participate in the meeting by video conference, with no physical meeting location available to the public.

Community members may provide comments by emailing [email protected] or using the “RAISE HAND” feature when the Mayor or City Clerk call for public comment. Emailed comments should include the specific agenda item on which you are commenting.

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International numbers available: https://zoom.us/u/aMWYF4KT East Palo Alto City Council June 7, 2022 Agenda Page 2 of 5

1. CALL TO ORDER AND ROLL CALL

2. APPROVAL OF THE AGENDA
(Government Code Section 54957.7(a))

3. APPROVAL OF CONSENT CALENDAR

1. On-Call Electrical Contractor
Recommendation: Adopt a Resolution authorizing the Interim City Manager to award a contract to Arias F. Electric Inc. for five (5) years with additional two one-year extensions at the discretion of the Interim City Manager for an amount not to exceed Fifty Thousand Dollars ($50,000) annually for on-call electrical maintenance services for City parks and facilities.

2. First Amendment to the Professional Services Agreement with Harris & Associates, Inc. for Implementing the Water Distribution System Asset Management Plan
Recommendation: It is recommended that the City Council, by motion:

Authorize the City Manager to execute the First Amendment to the professional services agreement with Harris & Associates, Inc. in the amount of $150,000.00 for the first phase of implementing the asset management plan for a new not-to-exceed total of $350,000.00 and extend the agreement through June 2024 with a possible six-month extension at the sole discretion of the City Manager.

3. Award of Business License Tax Administration Services to HdL Companies Recommendation: Adopt a resolution authorizing the City Manager to:

1. Enter into a professional services agreement with HdL Companies, in a form approved by the City Attorney, in an amount not to exceed $8,500, to implement their Business License Tax Administration system; and

2. Enter into a three-year agreement with HdL Companies in a form approved by the City Attorney, with two one-year extensions at the sole discretion of the City Manager to provide Business License Tax Administration services where the cost of those services shall not initially exceed $16 per business and shall increase annual at the United State Consumer Price Index; and

3. Enter into a three-year agreement with HdL Companies in a form approved by the City Attorney, with two one-year extensions at the sole discretion of the City Manager to provide Business License Tax Discovery, Compliance and Auditing Services where the cost of discovery and audit services shall not exceed 40% of new revenues and collection services shall not exceed 25% of new revenues.

4. Amendment Six with Youth Community Service for Distribution of Gift Cards to Encourage Vaccination
Recommendation: Adopt a Resolution authorizing the City Manager to execute a Sixth Amendment with Youth Community Services, to extend the term through September 30, 2022.

5. One-Time Vacation Pay Out Program
Recommendation: Adopt a Resolution authorizing the Interim City Manager implement a onetime vacation cash out, up to a combined maximum of 40 hours of vacation for eligible employees for a maximum estimated cost of $45,000.

East Palo Alto City Council June 7, 2022 Agenda Page 3 of 5

6. Proposed Contract Amendment with Verde Designs for the Martin Luther King Jr.

Park Master Plan
Recommendation: Adopt a Resolution (Attachment 1) authorizing the Interim City Manager to execute an amendment to the contract with Verde Designs for the Dr. Martin Luther King, Jr. (MLK) Park Master Plan process to accommodate additional California Environmental Quality Act (CEQA) related tasks.

7. Comment Letter to the Notice of Preparation for the Strategy to Advance Flood Protection, Ecosystems and Recreation along the San Francisco Bay Project Recommendation: It is recommended that the City Council direct the City Manager to transmit the final comment letter to the San Francisquito Creek Joint Powers Authority (SFCJPA) to serve as the City’s official comments to the NOP for the Project.

8. Resolution Authorizing an Application to the U.S. Department of Justice for Participation in the FY 2022 Community Oriented Policing Services Hiring Program Recommendation: Adopt a resolution authorizing the East Palo Alto Police Department to submit an application applying for funding from the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), for participation in the COPS Hiring FY 2022 program.

9. Ratifying Purchases and Authorizing New Purchases from Comcast Recommendation: Adopt a resolution:

1. Ratifying the previous purchase of Comcast services through June 1, 2022, in an amount of $24,289.09; and

2. Authorizing the purchase of Comcast services from July 1, 2022, through December 31, 2022 in the amount of $4,840.61 monthly, for a total purchase amount of $53,332.75; and

3. Waiving the formal bid procedures under section 2.84.070(D) of the Municipal Code.

10. Revised Ballot Measure Language for Gross Receipts Tax Measure Recommendation: Adopt a resolution revising the ballot measure language for the gross receipts tax measure.

11. Proclamation of the City of East Palo Alto Celebrating Juneteenth

12. Proclamation of the City of East Palo Alto Celebrating LGBTQ+ Pride Month

4. CLOSED SESSION - NONE

5. PUBLIC COMMENT
Members of the public wishing to address the City Council on items not listed on the agenda may do so under this item. Each speaker is limited to two minutes. The Mayor has the discretion to adjust speaking times. In accordance with State Law, no action or discussion may take place on any item not appearing on the posted agenda. The Council may respond to statements made or questions asked or may request Staff to report back at a future meeting concerning the matter.

The exceptions under which the City Council may discuss and/or take action on items not appearing on the agenda are contained in Government Code Section 54954.2(b)(1)(2)(3).

6. INFORMATIONAL REPORTS

1. Fireworks and Overall Public Safety Report
Recommendation: Interim Chief of Police, Jeff Liu will provide a presentation.

East Palo Alto City Council June 7, 2022 Agenda Page 4 of 5

7. SPECIAL PRESENTATIONS

1. Presentation from Vanessa Russell on Sex Trafficking Recommendation: Receive the presentation.

8. ADJOURN CITY COUNCIL REGULAR MEETING TO THE JOINT SUCCESSOR AGENCY

9. JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING

1. Adoption of Fiscal Year 2022-23 Successor Agency Budget Recommendation: Adopt a Resolution adopting the Fiscal Year 2022-23 Successor Agency Budget.

10. ADJOURN JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING and RECONVENE

11. PUBLIC HEARINGS

1. Adoption of Fiscal Year 2022-23 Budget
Recommendation: Adopt a Resolution adopting the Fiscal Year 2022-23 Budget.

Adopt Two-year Capital Improvement Program Update for FY 2022-23 and FY 2023-24

2. Establishing the Fiscal Year 2022-23 Appropriation Limit Recommendation: Adopt a Resolution establishing the FY 2022-23 Appropriation Limit of $37,844,018.

3. Inclusionary Housing In-Lieu Fee Update for FY 2022-23 Recommendation: It is recommended that the City Council adopt a Resolution establishing Inclusionary In-Lieu Fees for Ownership/For-Sale and Rental Units for Fiscal Year 2022-23.

12. POLICY AND ACTION

1. Municipal Service Review for the City of East Palo Alto, the East Palo Alto Sanitary District, and the West Bay Sanitary District
Recommendation: By motion, direct the Mayor to send the attached letter (Attachment 1) to the San Mateo Local Agency Formation Commission (SMLAFCo) to serve as the City’s official response to the Final Municipal Service Review (MSR) for the City of East Palo Alto (City), the East Palo Alto Sanitary District (EPASD), and the West Bay Sanitary District (West Bay).

2. Update and Recommendations Regarding the City’s Unhoused Residents Recommendation: It is recommended that the City Council take the following actions:

Accept the report providing an update on actions related to unhoused residents in East Palo Alto;
Provide direction on the proposed approach to oversized and recreational vehicle enforcement;
Provide direction on the Master Temporary Use Permit application to authorize provision of temporary housing on public or private property; and Adopt a Resolution authorizing staff to use Housing funds to cover permit fees for the Master TUP application for temporary housing (“Master TUP”).

East Palo Alto City Council June 7, 2022 Agenda Page 5 of 5

3. Proposed Strategy for Final Disbursement of Remaining Measure C Funding Recommendation: It is recommended that the City Council:

1. Accept the staff report and provide direction regarding the proposed approach for completing disbursement of the remaining Measure C funds; and

2. Appropriate a maximum of $15,000 in Measure C funding to support the Senior Center’s reopening efforts.

4. Initial City Reopening Plan
Recommendation: It is recommended that the City Council:

1. Accept the staff report and provide direction regarding the City’s initial approach to reopening as a stage of recovery from the COVID-19 Pandemic; and

2. Direct staff to return to the City Council in July 2022 with a detailed re-opening strategy.

5. COVID-19 Vaccination Program Regular Update
Recommendation: Discuss the COVID-19 vaccination program update and provide direction to staff.

13. COUNCIL REPORTS

14. ADJOURNMENT
This AGENDA is posted in accordance with Government Code Section 54954.2(a) This Notice of Availability of Public Records: All public records relating to an open session item which are not exempt from disclosure pursuant to the Public Records Act, that are distributed to the majority of the City Council will be available for public inspection at the City Clerk’s Office, 2415 University Avenue, East Palo Alto, CA at the same time that the public records are distributed or made available to the City Council. Such documents may also be available on the East Palo Alto website www.cityofepa.org subject to staff’s ability to post the documents prior to the meeting. Information may be obtained by calling (650) 853-3100.

The City Council meeting packet may be reviewed by the public in the Library or the City Clerk's Office. Any writings or documents pertaining to an open session item provided to a majority of the City Council less than 72 hours prior to the meeting, shall be made available for public inspection at the front counter at the City Clerk's Office, 2ND Floor, City Hall, 2415 University Avenue, East Palo Alto, California 94303 during normal business hours.

Information distributed to the Council at the Council meeting becomes part of the public record. A copy of written material, pictures, etc. should be provided for this purpose.

East Palo Alto City Council Chambers is ADA compliant. Requests for disability related modifications or accommodations, aids or services may be made by a person with a disability to the City Clerk's office at (650) 853-3127 no less than 72 hours prior to the meeting as required by Section 202 of the Americans with Disabilities Act of 1990 and the federal rules and regulations adopted in implementation thereof.

DECLARATION OF POSTING
This Notice is posted in accordance with Government Code §54954.2(a) or §54956. Members of the public can view electronic agendas and staff reports by accessing the City website. Under penalty of perjury, this Agenda was posted to the public at least 72 hours prior to the meeting.

POSTED: June 3, 2022
ATTEST:

James Colin
Acting City Clerk
FUTURE MEETINGS:

Regular Meeting June 21, 2022, at 6:30 p.m.

Regular Meeting July 5, 2022, at 6:30 p.m.

Regular Meeting July 19, 2022, at 6:30 p.m.

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Jay Farr, Maintenance Division Manager
Humza Javed, City Engineer
SUBJECT: On-Call Electrical Contractor
Recommendation
Adopt a Resolution authorizing the Interim City Manager to award a contract to Arias F.

Electric Inc. for five (5) years with additional two one-year extensions at the discretion of the Interim City Manager for an amount not to exceed Fifty Thousand Dollars ($50,000) annually for on-call electrical maintenance services for City parks and facilities.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 4: Improve Public Facilities and Infrastructure Background
The City does not have the necessary licensed personnel to provide electrical work for the City facilities and parks, and the current contract with Skyline Electric will expire on July 31, 2022. Skyline Electric’s insurance policy was cancelled in 2021 and has not been renewed as of yet. Skyline Electric has not performed work with the City since February 2021.

On January 28, 2022, staff released a Request for Proposal (RFP) to seek and obtain a new professional Electrical Contractor to provide on-call electrical maintenance services for the City facilities and parks.

Electrical Services are to be provided on an as-needed basis for the following City facilities and parks:

3.1 Packet Pg. 6

1. O’Connor Pump Station Facility, 1180 O’Connor Street

2. Community Development Facility, 1960 Tate Street

3. Reentry Program Facility, 2277 University Avenue

4. Maintenance Corporation Yard Facility, 150 Tara Road

5. Police Department Facility, 141 Demeter Street

6. Police Department Sub-Station Facility, 219 Demeter Street

7. Space at YMCA Facility, 550 Bell Street

8. Cooley Landing Facility & Park lights, 2100 Bay Road

9. Senior Center Facility, 560 Bell Street

10.Martin Luther King Jr. Park lights, 435 Daisy Lane

11.Jack Farrell Park lights, 2508 Fordham Street

12.Joel Davis Park lights, 1960 Tate Street

13.Newbridge Pocket Park lights

14.Other City Controlled Facilities/Areas
Staff posted on City’s website and mailed by US Postal Service the request for proposal (RFP) to several electrical companies in the Bay Area to obtain professional electrical services for the City of East Palo Alto on an on-call basis.

Analysis
By the deadline of March 25, 2022, City received total of Five (5) proposals from the following electrical companies:

1. Arias F. Electric Inc. - Menlo Park, CA

2. C&C Electric Inc. – San Leandro, CA

3. ETHOS Electric Inc. - San Jose, CA

4. Telstar Instruments - Concord, CA

5. Bear Electric Solution – Alviso , CA
After analyzing the proposals, staff recommends awarding a service contract to the lowest bidder Arias F. Electric Inc. in Menlo Park, California.

The table below has the hourly rate prices that were included in the five (5) responses received.

Electrical Contractor Services Proposal Evaluation chart:

3.1 Packet Pg. 7
Hourly Rates
Bear Electric
Solution
ETHOS
Electric Inc.

Telstar
Instruments
C&C
Electric Inc.

Arias F.

Electric
Inc.

Apprentice $185 $90 $158 $38 $25
Laborer $140 $120 $123 $78.46 $35
Journeyman $105 $150 $202 $136.89 $85
Total Hourly Labor
Rates
for all
Classifications
$430 $360 $483 $253.35 $145
Contract Summary:

Term: 5-years
Extension: Up to two (2) - one year extensions at the discretion of the city manager Total Compensation for 5 years: $200,000
Fiscal Impact
The estimated annual cost for facilities and parks electrical maintenance work is Fifty Thousand Dollars ($50,000). This amount is budgeted in the Public Works Maintenance Division FY 22/23 operational budget from City’s General Fund.

Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.

Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

Attachments

1. Resolution

3.1 Packet Pg. 8
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
AUTHORIZING THE CITY MANAGER TO AWARD A CONTRACT TO ARIAS F. ELECTRIC INC.

FOR FIVE (5) YEARS WITH ADDITIONAL TWO ONE-YEAR EXTENSIONS PER THE

DISCRETION OF THE CITY MANAGER FOR CITY FACILITIES AND PARKS ELECTRICAL MAINTENANCE WORK FOR AN AMOUNT NOT TO EXCEED $50,000 ANNUALLY.

WHEREAS, the City of East Palo Alto does not have licensed electrical personnel to provide electrical services to maintain the City facilities and parks; and WHEREAS, the current contract with Skyline Electric will expire on July 31, 2022. Skyline Electric’s insurance policy was cancelled in 2021 and has not been renewed; Skyline Electric has not performed work with the City since February 2021; and
WHEREAS, on January 28, 2022, staff released a Request for Proposal (RFP) to seek and obtain a new professional electrical contractor to provide on-call electrical maintenance services for the City facilities and parks; and
WHEREAS, by the deadline of March 25, 2022, City received total of five (5) proposals; and WHEREAS, Aris F. Electric, Inc. Meets all the qualifications and is the lowest responsible proposer; and
WHEREAS staff recommends awarding a service contract to Arias F. Electric Inc. in Menlo Park, California.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes the City Manager to award a contract to Arias F. Electric Inc. for five (5) years with additional two one-year extensions per the discretion of the City Manager for an amount not to exceed Fifty Thousand Dollars ($50,000) annually for on-call electrical maintenance services for City parks and facilities.

PASSED AND ADOPTED this 7
th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

3.1.a
Packet Pg. 9
Attachment: Resolution (2234 : On-Call Electrical Contractor) James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

3.1.a
Packet Pg. 10
Attachment: Resolution (2234 : On-Call Electrical Contractor)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Glen March, Senior Engineer
Humza Javed, City Engineer
SUBJECT: First Amendment to the Professional Services Agreement with Harris & Associates, Inc. for Implementing the Water Distribution System Asset Management Plan
Recommendation
It is recommended that the City Council, by motion:

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
On January 30, 2020, the State Division of Drinking Water (“DDW”) issued Permit No. 02-17- 20p-4110024 (“Permit”) to the City of East Palo Alto (“City”) for operating and maintaining the City’s water system. The Permit requires the City to submit a Water System Asset Management Plan (“AMP”) to DDW.

On November 17, 2020, the City Council authorized the City Manager to execute an agreement with Harris & Associates, Inc. in the amount of $200,000, to prepare an AMP pursuant to City Council Resolution No. 146-2020.

On March 15, 2022, the City Council approved the AMP pursuant to City Council Resolution

3.2 Packet Pg. 11
No. 24-2022.

The AMP provides a framework for collecting asset data pertaining to the City’s water system.

Assets include water meters, pipes, fittings, valves, hydrants, water storage tanks, wells, water treatment facilities, etc. The data is used for a risk-based approach for prioritizing asset maintenance and replacement.

Asset data is input into Asset Management Software System (Software). The Software allows the water system operator to schedule, record, and report operational and maintenance tasks.

Veolia North America, Inc. (Veolia) owns and maintains the Software for the City’s water system. The City owns the asset data.

Analysis
Implementing the AMP has numerous goals, including:
· Creating more transparency about the maintenance and operation of the water system by identifying required reports so staff may perform better oversight of the water distribution system operator; and
· Prioritizing how limited water funds should be used to maintain the water system and replace water system asset; and
· Preparing a single document - the AMP - that contains the operational and maintenance requirements of each asset in water system.

The first phase of implementing asset management plan is to specify the asset data to be collected and maintained about assets attributes, maintenance tasks, and operational tasks.

To determine the maintenance and operational data to be collected, the Consultant’s first task is to document the federal, state, and local requirements for the water system. The data specifications will be provided to Veolia so they may customize their asset management software system.

At the end of the first phase, the amended AMP will be presented to the City Council.

Fiscal Impact
There are funds available in Fund 510 for this work.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.

Attachments

1. Resolution

2. Draft Amendment

3.2 Packet Pg. 12
Resolution No. XX-2022 1 of 2
RESOLUTION NO. XX – 2022

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH HARRIS & ASSOCIATES, INC. IN THE AMOUNT OF $150,000 FOR IMPLEMENTATION OF THE ASSET MANAGEMENT PLAN FOR A NOT-TO-EXCEED CONTRACT AMOUNT OF $350,000 AND TO EXTEND THE CONTRACT TERM THROUGH JUNE 2024 WITH A POSSIBLE SIX-MONTH EXTENSION AT THE SOLE DISCRETION

OF THE CITY MANAGER
WHEREAS, on January 30, 2020, the State Division of Drinking Water (“DDW”) issued Permit No. 02-17-20p-4110024 (“Permit”) to the City of East Palo Alto (“City”) for operating and maintaining the City’s water system; and
WHEREAS, DDW issued a revised permit due to the purchase of the American Water Works Company, LLC. by Veolia North America, LLC; and
WHEREAS, the Permit requires the City to submit a Water System Asset Management Plan (“AMP”) to DDW; and
WHEREAS, on November 17, 2020, the City Council authorized the City Manager to execute an agreement with Harris & Associates, Inc. in the amount of $200,000, to prepare an AMP pursuant to City Council Resolution No. 146-2020; and
WHEREAS, on March 15, 2022, the City Council approved the AMP pursuant to City Council Resolution No. 24-2022; and
WHEREAS, additional work is required for implementation of the AMP over the course of the next two years and support from the consultant is required to ensure the City’s commitments in AMP are met.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes the City Manager to execute the First Amendment to the professional services agreement with Harris & Associates, Inc. in the amount of $150,000.00 for implementation of the Asset Management Plan for a new not-to-exceed contract amount of $350,000.00, and to extend the contract term through June 2024 with a possible six-month extension at the sole discretion of the City Manager.

PASSED AND ADOPTED this 7
th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

3.2.a
Packet Pg. 13
Attachment: Resolution (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) Resolution No. XX-2022 2 of 2
Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Interim City Clerk Valerie J. Armento, Interim City Attorney

3.2.a
Packet Pg. 14
Attachment: Resolution (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.)

FIRST AMENDMENT TO

AGREEMENT BETWEEN

CITY OF EAST PALO ALTO
AND
HARRIS & ASSOCIATES, INC.

This First Amendment to the Principal Agreement made and entered into on ______ day of ____________, 2022, hereafter referred to as Agreement, between Harris & Associates, Inc., California Corporation, therein referred to as Consultant, and the City of East Palo Alto, a municipal corporation, therein referred to as City, is made and dated for reference this 21th day of December 21,2022.

Consultant and City do mutually agree as follows:

1. Amended Exhibit A, Attachment 1. Exhibit A, Attachment 1 of the Principal Agreement, sets forth the services to be provided pursuant to the Principal Agreement is hereby amended to include the services and billable rates as set forth in Exhibit A of this Amendment.

2. Revised Exhibit B, Section 1. The first paragraph of Exhibit B, Section 1 of the Principal Agreement, entitled “Consultant’s Compensation” is hereby repealed and replaced with the following:

City agrees to pay Consultant, at the rate(s) specified below, for those services set forth in Exhibit A of this Agreement, as amended, and for all authorized reimbursable expenses, for a total not to exceed Three Hundred, Fifty Thousand ($350,000.00) for the contract.

Consultant agrees that the amount of increase in the not to exceed amount specified above shall constitute full compensation for the Additional Services, and shall fully compensate Consultant for any and all direct and indirect costs that may be incurred by Consultant in connection with the Additional Services, including costs associated with any changes and/or delays in work schedules or in the performance of other services or work by Consultant.

3. Integration. This Amendment, including all exhibits, if any, contains the entire agreement between the parties and supersedes whatever oral or written understanding they may have had prior to the execution of this Amendment. This Amendment shall not be amended or modified except by a written agreement executed by each of the parties hereto. Except as specifically revised herein, all terms and conditions of the Agreement, and all prior amendments, if any, shall remain in full force and effect, and Consultant shall perform all duties, obligations and conditions required under the Agreement.

4. Inconsistencies. In the event of any conflict or inconsistency between the provisions of this Amendment and the Agreement, and any prior amendment, if any, the provisions of this Amendment shall control in all respects.

3.2.b
Packet Pg. 15
Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.)

5. Ambiguities. The parties acknowledge that they have had the opportunity to have this Amendment reviewed by their respective legal counsel, and that the terms and conditions of this Amendment are not to be construed against any party on the basis of such party's draftsmanship thereof.

6. Counterparts. This Amendment may be executed by the parties in one or more counterparts all of which collectively shall constitute one document and agreement.

7. Facsimile Signature; Electronic Signature. This Amendment shall be binding upon the receipt of facsimile signatures or e-mailed by PDF or otherwise. Any person transmitting his or her signature by facsimile or electronically shall promptly send an original signature to the other party pursuant to the notice provision of the Agreement.

The failure to send an original shall not affect the binding nature of this Amendment.

8. Authority. The person signing this Amendment for Consultant hereby represents and warrants that he or she is fully authorized to sign this Amendment on behalf of Consultant.

IN WITNESS WHEREOF, the parties have entered into this Second Amendment on the day and year first hereinabove appearing.
[Signatures on the following page]

3.2.b
Packet Pg. 16
Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) Harris & Associates, Inc.,
a California Corporation
By:

Tom West, Vice President
DATE: ____________________
FEDERAL I.D. #: ____________

East Palo Alto Business License No.

CITY OF EAST PALO ALTO,
a municipal corporation
By:________________________
Patrick Heisinger
Interim City Manager
DATE:_____________________
ATTEST:

By:________________________
James Colin, Acting City Clerk
APPROVED AS TO CONTENT:
__________________________
Kamal Fallaha
Public Works Director
APPROVED AS TO FORM:

Valerie J. Armento
Interim City Attorney

3.2.b
Packet Pg. 17
Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) Exhibit A
Attachment 1

3.2.b
Packet Pg. 18
Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) One California Plaza, 300 S Grand Avenue, Suite 3830, Los Angeles, CA 90071  p: 800.827.4901  www.WeAreHarris.com April 27, 2022
Mr. Glen March
Senior Engineer, Department of Public Works
City of East Palo Alto
1960 Tate Street, East Palo Alto, CA 94303

PROPOSAL TO DEVELOP ASSET MANAGEMENT SOFTWARE SYSTEM STANDARDS Dear Mr. March:

Harris and Associates (“Harris”) is pleased to provide you with this proposal to provide support to the City of East Palo Alto (“City”) as it implements its Water System Asset Management Plan (“AMP”). The basis for the support services, the proposed scope of work, schedule, staffing plan and budget are provided herein.

BASIS FOR SUPPORT SERVICES
Paragraph 26 of the Domestic Water Supply Permit issued by the State Water Resources Control Board Division of Drinking Water (“DDW”) on January 30, 2020 (“Permit”) requires the City to prepare an AMP. Doing so will help the City to meets its responsibilities as a water system owner including:
 Understand what water infrastructure assets are owned by the City and their condition  Define how to maximize the useful life of existing water infrastructure by documenting maintenance requirements
 Determine how to prioritize and cost effectively replace outdated infrastructure  Verify Veolia’s compliance with DDW Permit requirements and  Provide City staff with tools and expertise to oversee Veolia’s performance more effectively Working with both the City and its system operator Veolia (the system operator leasee), Harris prepared and submitted the AMP to the City in December 2021. The City Council approved the AMP at its March 15, 2022 City Council meeting; after which, the City transmitted the approved AMP to DDW to fulfill this permit obligation.

In submitting the AMP to DDW, the City has committed itself to implementing the AMP and has requested support from Harris over the next three years in order to do so.

SCOPE OF WORK AND SCHEDULE
The scope of work which Harris proposes to perform is provided in Attachment 1 and entails developing asset management software system standards. Included within the scope of work are schedule milestones and requirements. Completion of this task will allow the City and Veolia to begin populating and updating the water system asset register using consistent standards and following consistent and documented processes.

BUDGET
Harris proposes to complete the scope of work within a not‐to‐exceed budget of $150,000. A breakdown of the fee estimate used to develop this budget is provided in Attachment 2.

3.2.b
Packet Pg. 19
Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 2 CLOSING
We greatly appreciate the opportunity to continue to support the City of East Palo Alto. Please contact me at [email protected] or (213) 500‐9911 if you have any questions regarding our proposal.

Very truly yours,
Tom West, P.E.

Vice President, Water Consulting

3.2.b
Packet Pg. 20
Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 1 ATTACHMENT 1

EAST PALO ALTO

ASSET MANAGEMENT PLAN IMPLEMENTATION AMENDMENT
Asset Register Implementation
The following are general assumptions that apply to the proposed scope:

1. The existing Asset Management Software System, InfoAsset, currently being used by City’s lessee, will be used for the duration of the contract.

2. City’s lessee currently uses or more databases for its operations. Regardless of the number of databases used by the Lessse, all asset information will reside in the Asset Register.

3. Data from the lessee’s other databases may be incorporated into the Asset Register. Lessee will be responsible for incorporating information from the other databases into the Asset Register.

4. Harris will not be required to purchase any database systems for the work.

5. Harris will not serve as the Asset Manager as defined in the Asset Register Master Plan.

6. Harris will not be responsible for collecting field data, including condition assessment information.

Term of the Amendment
The term of this amendment shall be three (3) years from the execution date.

Schedule
Harris shall complete Task 1 in six (6) months after notice to proceed.

As part of the project management task, Harris shall prepare a critical path method schedule for the activities identified in this amendment.

Deliverables
All deliverables shall be submitted in word format or pdf format, unless otherwise specified or agreed in writing.

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 2 Task 1: Develop Asset Management Software System Standards Harris shall perform the work required and necessary to develop the standards for the asset management software system as described below. The standards for each asset class/type will be incorporated into the appendices of the Asset Management Plan.

Asset management software is published with pre-set asset classes/types and asset data fields. The asset management software must be customized for the City’s assets, as well as for the data fields that the City wishes to capture to achieve its goals.

Harris shall review the existing software system’s asset classes/types and data fields, recommend changes to the existing asset management software system to accomplish the City’s goals. The existing software system will be utilized to the greatest extent practicable to cost effectively implement the asset management software system.

City and Harris will agree to the order which asset classes/types are addressed as part of each of the below tasks.

The Asset Register currently addresses the following asset classes/types: water meters, pipes, fittings, valves, backflow devices, hydrants, treatment works (including well), water sampling stations, generators, pumps, and customers.

As part of the work below, Harris may recommend and the City may approve additional asset classes/types. The City is responsible for approving the assets in each asset class/type.

The City will provide CVS files of the latest asset attributes and asset maintenance activities data fields from the Asset Register prior to Harris starting work.

Task 1A. Identify Required Asset Register Data Fields for Operational and Maintenance Requirements
Operational and maintenance data in the asset management software system is intended to ensure City staff may perform oversight of the Lessee’s operational and maintenance activities.

Harris shall identify operational requirements and maintenance requirements separately. Typically, the asset management software system does not distinguish between operational and maintenance data, however, the City wishes to distinguish between operational and maintenance requirements for each asset class/type in the appendices of the Asset Management Plan. Harris shall also identify the frequency associated with operational requirements and maintenance requirements.

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 3 Identifying attributes related to operational and maintenance requirements requires researching and documenting requirements prior to identify the required data fields.

Researching and documenting operational and maintenance requirements includes the followings tasks:

1. Identify and list documents (references) associated with requirements for each asset. The references may include (a) AWWA Standards and/or Manuals; (b) Federal, state, and local laws, codes, and requirements, (c) operation and/or maintenance manuals for equipment, and/or (d) various plans for each asset class/type. References shall be appropriately cited by an agreed upon standard, such as the “Citations Bluebook.” Citations should include specificity, such as, applicable code sections and pages.

2. Provide electronic copies of free documents/references cited to the City.

3. Prepare a checklist for operational requirements for each asset class/type, which cite the appropriate reference(s) for the requirements.

4. Prepare a checklist for maintenance requirements for each asset class/type, which cite the appropriate reference(s) for the requirements.

Upon completion of the first step for an asset class/type, the second step is to identify the required asset register data fields for operational and maintenance requirements.

For each asset class/type, Harris shall prepare a list of recommended asset register fields by performing the following work:
 Prepare a list of the existing data fields for asset maintenance.  On the list, identify which data fields are and are not being utilized for data.  On the list, recommend data fields that should be utilized that are not being currently utilized.
 On the list, recommend data fields that should be added.

An asset class may contain several different types of asset types with different data requirements. Harris shall make recommendations regarding creating new asset classes as required to software limitations or data organization.

Deliverable #1:

1. Draft List of References document for each asset class/type.

2. Draft Checklist of Operational Requirements document for each asset class/type.

3. Draft Checklist of Maintenance Requirements document for each asset class/type.

Deliverable #2:

1. List of References document for each asset class/type, that incorporates and/or addresses City comments.

2. Checklist of Operational Requirements document for each asset class/type, that incorporates and/or addresses City comments.

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 4 1. Checklist of Maintenance Requirements document for each asset class/type, that incorporates and/or addresses City comments.

2. Electronic files of free references.

Deliverable #3:

1. Draft Recommended Asset Register Data Fields document for each asset class/type.

Deliverable #4

1. Asset Register Data Fields document for each asset class/type, that incorporates and/or addressing City comments.

Task 1B. Identify Required Asset Register Data Fields for Other Asset Attributes Collection of asset data is dependent on the functionality of the existing asset register.

To capture data to achieve the City’s goals, the asset management software system must be customized to capture data to achieve the City’s goals.

City will provide CSV files of data contained in the Asset Register for asset attributes and asset maintenance/operations.

For each asset class/type, Harris shall prepare a list of recommended asset register data fields by performing the following work:
 Prepare a list of the existing data fields for other asset attributes.  On the list, identify which fields are and are not currently being utilized.  On the list, recommend which fields should be utilized for data that are not currently being utilized.
 On the list, recommend data fields that should be added.

An asset class may contain several different types of asset types with different data requirements. Harris shall make recommendations as to creating new asset classes as required to keep data.

Certain asset classes, such as, Customers are not currently tracked in the asset register. Harris shall recommend all fields for asset classes that is not currently tracked.

Deliverables:

1. Draft Recommended Asset Register Data Fields document for each asset class/type.

2. Asset Register Data Fields document for each asset class/type, that incorporates and/or addresses City comments.

Task 1C. Identify Standard Data Inputs for Asset Register Data Fields for Asset Attributes

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 5 Standardizing data inputs is important to grouping information in the database, that is, data should be input with a drop-down menu rather than a text input field whenever possible. For example, using a drop-down menu, pipe material type will be input the same via a drop-down, such as “Cast Iron,” versus allowing the inputter to write “CI” or “C. Iron” in a text input field.

For each asset register data field, Harris shall prepare a recommended list of standard inputs to the maximum extent possible for each data field.

For example, for pipe material, the standard data inputs may be “CI,” “ACP,” “PVC,” “DIP,” and “Other.”” For a maintenance, the standard data inputs may be “Service,” “Repair,” “Paint,” “Rebuild,” “Other” with a definition of “Service” and a text field for a description of the work performed.

The standard data inputs apply to all data fields identified in Tasks 1A and 1B, above.

Deliverables:

1. Draft Recommend Standard Data Inputs document for each asset class/type.

2. Standard Data Input document for each asset class/type that incorporates or addresses City comments.

Task 1D. Identify EPA Standard Reports
Reports generated from the asset management software system is the essential part of the asset management software system.

Reports will allow staff to (a) perform oversight of the City Lessee’s contract compliance, including system maintenance; and (2) prioritize which assets to maintain and replace using a risk-based approach methodology.

Harris shall review the standard reports generated from the InfoAsset and make recommendations for adopting and/or improving the reports, as appropriate.

Harris shall also identify additional reports to be generated by the asset management software system for each asset class/type, including data fields to be displayed in the report, as well as the frequency of the reports.

Deliverables:

1. Draft EPA Standard Reports memorandum for each asset class/type

2. EPA Standard Reports document for each asset class/type incorporating and addressing City’s comments.

Task 1E. Update Asset Management Plan Appendices
Harris shall prepare an Asset Management Plan appendix for each asset class/type.

The appendix shall incorporate the information developed as part of the above items in the format, similar to shown in the attachment entitled “Asset Information ad Register Data Standard Format.

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 6 As part of preparing each appendix, each appendix should include a glossary of terms, as well as the following:
 Standard definitions for assets and the different ways they are handled  Standard descriptions for assets entered into the appropriate fields in the Asset Register
 Standard definitions for asset and hierarchical positions  Standard naming conventions and definitions for assets.  Standard definitions for the attribute information collected for each asset type Deliverables:

1. Draft appendix for each asset class/type.

2. Appendix for each asset class/type, that incorporates and/or address City comments.

Task 2: Project Management
Harris shall prepare invoices including a monthly progress report that includes issues and concerns; critical path method schedule for task 1 activities for each asset class/type in Microsoft project.

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 7 EXCERPT REGARDING ASSET MANAGER ROLE
FROM ASSET REGISTER MANAGEMENT PLAN, FEBRUARY 2022

5.1.1 ASSET MANAGER
The asset manager will be responsible for maintaining the integrity and accuracy of the Asset
Register in accordance with this ARMP. Adding new assets, modifying existing assets, or decommissioning assets in accordance with the requirements of this ARMP will be completed by the asset manager or designated representative. Changes outside the scope of this ARMP will require approval from the Public Works Director or designated representative. Items outside the scope of this ARMP include but are not limited to creating a new asset class, creating a new asset type, or modifying this ARMP. Final authority on all matters will rest with the Public Works Director or designated representative.

5.1.2 ASSET REPLACEMENT
Adding replacement assets (replacing assets in kind), updating asset attribute data, or decommissioning assets will be completed through the GIS interface. The asset manager or designated representative will review and accept, reject, or modify all changes.

New Assets
New assets (such as a new housing development or water main replacement) may be added to the
Asset Register provided that the following occurs:
• All assets be placed in a planning status and cannot be placed into an active status until approved by the asset manager.
• Before placing assets in active status, all asset attribute information must be field verified (including verification of asset location), and additional assets that were found in the field but not on drawings must be added.

Existing Assets
Verification of current asset information must consist of the following:
• Incorporation of information from construction as-built drawings into Asset Register.
• Identification of assets to be verified in the field before conducting the field verification.
• In the field:
o Location of the asset and capture of its GPS location on a handheld device.
o Review of the asset’s attribute information in the field and notation of any discrepancies.
• Upload asset information to AMSS. The asset manager will review the discrepancies and approve changes before updating the GIS Asset Register.

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 8 5.1.3 ASSET REGISTER QUALITY CONTROL PROGRAM
The asset manager will manage a quality control program to verify the quality and accuracy of the
Asset Register. This program will be accomplished through a field verification process and include the following:
• A sampling of 10 percent of assets shall occur in the field every five years with assets in the Asset Register or more or less frequently based on the Strategic Asset Management Plan for each specific asset class and type. • An asset technician shall carry the asset information with them into the field to compare with assets in the field. The asset technician shall identify assets and/or asset data that do not match with the Asset Register.
• The asset manager or designated representative shall review the field verification findings and determine the quality and accuracy of the Asset Register. This may result in additional field verification activities if deemed necessary.
• The asset manager shall be responsible for updating the Asset Register as needed and conducting a wide-scale Asset Register update if deemed necessary.

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 9 ASSET INFORMATION AND ASSET REGISTER DATA STANDARD FORMAT (FROM APPENDIX B, ASSET REGISTER MANAGEMENT PLAN, FEBRUARY 2022) Asset Description, Requirements, and Replacement Planning Information

1. Asset Class or Asset Type
a. Description
b. Operational Requirements
i. Requirements

1. Federal Requirements

2. State Requirements

3. Local Requirements

4. Permit Requirements
ii. Operating Manual(s)
iii. Reporting Requirements
iv. References
c. Maintenance Requirements
i. Requirements

1. Federal Requirements

2. State Requirements

3. Local Requirements

4. Permit Requirements
ii. Maintenance Activity Definitions

1. Inspect

2. Service

3. Repair

4. Rehabilitate

5. Paint

6. Flush

7. Other
iii. Required Spare Parts
iv. Maintenance Manual(s)
v. Reporting Requirements
vi. References
d. Testing Requirements
i. Requirements

1. Federal Requirements

2. State Requirements

3. Local Requirements

4. Permit Requirements
ii. Reporting Requirements
iii. References
e. Asset Replacement Planning

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 10 i. Condition Assessment

1. Definitions

2. Criteria

3. References
ii. Criticality Assessment

1. Definitions

2. Criteria

3. References
iii. Risk Profile

1. Definitions

2. Criteria

3. Reporting Requirements
f. Associated Level of Service(s) Requirements
i. Level of Service

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 11 Asset Register Format

1. Asset Class
a. Asset Type
b. Asset Identification Number
c. Asset Location Data
d. Asset Physical Characteristics Data
i. Size
ii. Material
iii. Other
e. Asset Manufacturer Data
i. Manufacturer
ii. Model
iii. Serial Number
iv. Other
f. Associated Equipment or Devices
g. Operational Data
i. Operational Activity Date
ii. Operational Activity Type
iii. Performed by
iv. Description and Observations
v. Other
h. Maintenance Data
i. Maintenance Activity Date
ii. Maintenance Activity Type

1. Inspection

2. Service

3. Repair

4. Paint

5. Other
iii. Performed by

1. City Staff

2. City Contractor

3. Lessee Staff

4. Lessee Contractor

5. Name

6. Other
iv. Description and Observations
v. Other
i. Testing Data
i. Test Date
ii. Test Type
iii. Test Results
iv. Description and Observations

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 12 v. Other
j. Asset Replacement Planning Data
i. Condition Assessment

1. Failure
a. Failure Date
b. Failure Type
c. Description and Observations
d. Other

2. Remaining Service Life
a. Installation Date
b. Service Life

3. Parts Available (Yes/No)

4. Manufacturer Support Available (Yes/No)

5. Condition Assessment Score
ii. Criticality Assessment

1. Criticality Assessment Score

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.) 3 ATTACHMENT 2

ASSET MANAGEMENT PLAN IMPLEMENTATION SUPPORT SERVICES

DETAILED FEE/BUDGET ASSUMPTION BREAKDOWN
$250 $205 $165 $300

1.  Develop Asset Management Software
System Standards 210 242 216 10 678 $140,750
1A.  Identify Required Asset Register Data Fields for
Operational and Maintenance Requirements 44 48 48 2 142 $29,360 Task 1B.  Identify Required Asset Register Data Fields
for Other Asset Attributes 44 48 48 2 142 $29,360
Task 1C.  Identify Standard Data Inputs for Asset
Register Data Fields for Asset Attributes 44 48 40 2 134 $28,040 Task 1D.  Identify Standard Reports for the Asset
Register 46 50 40 2 138 $28,950
Task 1E.  Update Asset Management Plan Appendices 32 48 40 2 122 $25,040

2. Project Management 36 6 42 $9,180
TOTALS 210 278 216 16 720 $149,930
Hourly rates shown are for 2022. May be updated annually.

ACTIVITIES Labor $
B. Spindor
Sr. Consultant
Staff Proj.

Engineer
Staff Asst.

Engineer
T. West
Principal Total
Hours

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Attachment: Draft Amendment (2273 : First Amendment to the Professional Services Agreement with Harris & Associates, Inc.)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Bo-Kyoung Kim, Financial Services Manager
Greg Henry, Senior Management Analyst
SUBJECT: Award of Business License Tax Administration Services to HdL Companies Recommendation
Adopt a resolution authorizing the City Manager to:

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 2: Enhance Economic Vitality
Priority No. 3: Increase Organizational Effectiveness and Efficiency Background

3.3 Packet Pg. 34
The current business license system is labor intensive for staff, with 12 percent of the Finance Department’s total staff hours (or .75 of a full-time employee) annually committed to managing business licenses. The current intake process is completely manual with citizens completing a paper form (and mailing it in or delivering in person) which is then transcribed into the City’s Business License software by staff. Annually, for the renewal and to process the business license tax, businesses must complete a paper form to calculate tax owed. Staff have found that 10 to 15 percent of businesses that mail in their renewals complete the form incorrectly, leading to additional staff time reaching out to those businesses and correcting the information and asking for a corrected payment.

The City issued a Request for Proposals (RFP), on February 2, 2022. The City had three proposers. Two of them moved forward from the proposal phase to demonstration of their product. Staff selected HdL Companies as the vendor which best met the City’s needs.

Analysis
Staff is recommending that Council entertain a three‐year agreement with HdL. HdL currently serves 220 cities in California including business license tax/registration, transient occupancy tax, cannabis tax, and short-term rentals, HdL processes hundreds of millions in revenue annually from locally collected taxes. This enables HdL to compile the most extensive database in the State. Thus, HdL has more access to data regarding misallocated revenue than any other company, aiding in the efficient recovery of such funds for local jurisdictions.

The Business License Tax Administration Service will provide a turnkey approach for the City.

HdL has a team of experts can manage all the business tax operations conducted by the City.

When combined with the Compliance Management services, the City will receive the benefit of increased revenues and superior customer service, while reducing internal costs and gaining efficiencies a “trifecta” of increasing city revenues and support to the business community, while simultaneously reducing costs.

HdL programs are so successful in this endeavor, that most of their clients not only reduce costs, but actually see new revenues exceeding the cost of the program, resulting in the City receiving the contracted administration services effectively at no cost.

HdL’s online portal was reviewed as the best offered solution with the greatest ease of use and the highest level of sophistication for the City’s businesses. The City website will be the starting point for all web-based activities. This City specific site will look and feel like the City’s own web pages, which ensures a level of continuity between the business community, the City, and HdL.

HdL’s website offers a variety of online functions to service the business community. While most of the website is a self-service platform for the business community, HdL staff reviews each account processed online for accuracy and compliance with City guidelines and procedures. Besides filing and paying for taxes, businesses can get copies of applications, general support and FAQs, schedule appointments, and request copies of their tax registration, all with the click of a button. Our on-line services underscore HdL’s commitment to excellence in customer service and education by continually improving the registration and payment experience for the business community. Online functionality available to the business community includes:

3.3 Packet Pg. 35
· Submission of a new application
· Renewal of existing account
· Closure request
· Pay a balance due
· Update account information
· Print Certificate
· Public record inquiries
Staff are excited to report that HdL’s payment acceptance process accepts the following payment types:
· Check / Money Order /Cashier’s Check
· E-Check
· Debit Cards
· Credit Cards (Visa, Mastercard, Discover, and American Express) · Check by Phone
Increasing the manner and method through which the City’s businesses can pay.

HdL is specialized in sales and use tax analysis and has exhaustive experience identifying and correcting “point of sale” allocation errors, misallocations, and other misreported sales transactions that result in recovered sales tax revenues for the City.

Fiscal Impact
The Business License Tax Administration cost is $16 per business (with an annual inflation equal to United States Annual Consumer Price Index (CPI)). Currently there are approximately 1,100 active licenses ($17,600). However, staff expect this number to increase significantly with HdL’s compliance services. There are, for example, approximately 3,500 businesses ($56,000) in the system.

For Business License Tax Discovery, Compliance and Auditing Services HdL collects 40% of the first year of new revenue for discovery and 25% of revenue for compliance. This isn’t an expense but a reduction in initial revenue because the cost comes from otherwise uncollected revenue.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Attachments

3.3 Packet Pg. 36

1. Resolution Award HdL Business License Tax Administration Services

3.3 Packet Pg. 37
Resolution No. XX-2022 1 of 2
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH HDL COMPANIES IN AN AMOUNT NOT TO EXCEED $8,500 TO IMPLEMENT A BUSINESS LICENSE TAX ADMINISTRATION SYSTEM, ENTER INTO A THREEYEAR AGREEMENT TO PROVIDE BUSINESS LICENSE TAX ADMINISTRATION SERVICES

AND ENTER INTO A THREE-YEAR AGREEMENT TO PROVIDE BUSINESS LICENSE TAX DISCOVERY, COMPLIANCE AND AUDITING SERVICES.

WHEREAS, on February 2, 2022, the City of East Palo Alto issued a request for proposals to offer Business License Tax Administration Services; and WHEREAS, on May 18, 2022, the City received proposals from three (3) vendors; and WHEREAS, the City selected two (2) vendors to demonstrate their solutions for City staff; and WHEREAS, the City solicited input from other cities which had implemented those solutions; and
WHEREAS, the review committee determined that HdL Companies was the best fit with the most cost-effective solution.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizing the City Manager to:

1. Enter into a professional services agreement with HdL Companies, in a form approved by the City Attorney, in an amount not to exceed $8,500, to implement a Business License Tax Administration system; and

2. Enter into a three-year agreement with HdL Companies, in a form approved by the City Attorney with two one-year extensions at the sole discretion of the City Manager, to provide Business License Tax Administration services where the cost of those services shall not initially exceed $16 per business and shall increase annual at the United State Consumer Price Index; and

3. Enter into a three-year agreement with HdL Companies in a form approved by the City Attorney with two one-year extensions at the sole discretion of the City Manager, to provide Business License Tax Discovery, Compliance and Auditing Services where the cost of discovery and audit services shall not exceed 40% of new revenues and collection services shall not exceed 25% of new revenues.

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Attachment: Resolution Award HdL Business License Tax Administration Services (2280 : Award HdL for Business License and Tax Resolution No. XX-2022 2 of 2
PASSED AND ADOPTED this 7th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

3.3.a
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Attachment: Resolution Award HdL Business License Tax Administration Services (2280 : Award HdL for Business License and Tax

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Greg Henry, Senior Management Analyst
SUBJECT: Amendment Six with Youth Community Service for Distribution of Gift Cards to Encourage Vaccination
Recommendation
Adopt a Resolution authorizing the City Manager to execute a Sixth Amendment with Youth Community Services, to extend the term through September 30, 2022.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 5: Improve Communication and Enhance Community Engagement Priority No. 6: Create a Healthy and Safe Community
Background
The widespread, deleterious impacts of the outbreak of novel coronavirus (named “COVID-19” by the World Health Organization) continues to strain communities throughout the Bay Area and the world.

On March 17, 2020, the Council proclaimed a local emergency for COVID-19 and further authorized the City Manager to make repairs, alterations, or improvements to the City’s public facilities, take any directly related and immediate actions required by the emergency, and procure the equipment, services, and supplies for those purposes.

On July 20, 2021, following the COVID-19 Vaccination Program Regular Update agenda item, the Council authorized $25,000 in funds to be used for a vaccination gift card incentive program. Council direction was that residents should receive $50 incentive cards for completing a COVID-19 vaccination schedule.

Following review, the City Manager determined the best use of City resources would be to

3.4 Packet Pg. 40
outsource the administration of this program. Youth Community Service (YCS) was chosen.

The City initiated a third amendment with YCS to authorize the use of the incentive program for youths between the ages of 5-16.

On December 21, 2021 the City Council authorized a fourth amendment with YCS to extend the program through the end of February 2022 and to increase the not to exceed by $15,000 which was the amount provided by the County through a grant.

On April 5, 2022 the City Council authorized a fifth amendment with YCS to extend the program through the end of May 2022, to increase the not-to-exceed amount by $5,000, and to allow for gift cards to children less than five should they be approved.

Analysis
This program has supported the City's incredible increase the population percentage of vaccination. Staff are asking for an increase in the term in order to manage this program through the start of the school year where the COVID vaccine will be required for many students.

Fiscal Impact
This update will only extend the term and not increase the not to exceed.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Attachments

1. Resolution YCS Amendment 6

3.4 Packet Pg. 41
Resolution No. XX-2021 1 of 2
RESOLUTION NO.– 2022

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO EXECUTE A SIXTH AMENDMENT TO AN AGREEMENT

WITH YOUTH COMMUNITY SERVICES TO EXTEND THE TERM THROUGH SEPTEMBER 30, 2022.

WHEREAS, on January 31, 2020, the United States Department of Public Health and Human Services Secretary declared a public health emergency for the novel disease named “coronavirus disease 2019” or “COVID-19" by the World Health Organization; and WHEREAS, the Centers for Disease Control and Prevention ("CDC”) has stated that COVID-19 is a serious public health threat based on current information; and WHEREAS, on March 3, 2020, the San Mateo County Health Officer declared a local health emergency throughout San Mateo County and the County Manager, serving as the County Director of Emergency Services, proclaimed a local emergency throughout San Mateo County related to the novel coronavirus (“COVID-19”) and on March 10, 2020, the San Mateo County Board of Supervisors (“County Board”) ratified and extended the declaration and proclamation and this state of emergency remains in effect; and
WHEREAS, on March 4, 2020, the Governor of California declared a State of Emergency due to the outbreak and spread of COVID-19; and
WHEREAS, on March 17, 2020, the City Council proclaimed a local emergency due to COVID19 and further authorized the City Manager to make repairs, alterations or improvements to the City’s public facilities pursuant to Section 22050 of the California Public Contract Code, take any directly related and immediate actions required by the emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts; and WHEREAS, on July 20, 2021, the City Council appropriated Twenty-Five Thousand Dollars ($25,000) for a vaccination incentive program which would provide gift cards to residents upon vaccination; and
WHEREAS, on September 7, 2021, the City Council approved an amendment to the contract dated June 25, 2021 with Youth Community Services for the purchase and management of gift cards for the vaccination incentive program; and
WHEREAS, on October 18, 2021, the City entered into an agreement with the County of San Mateo for Fifteen Thousand Dollars ($15,000) in additional gift card funding; and WHEREAS, the vaccination incentive program is being expanded to incentivizing vaccination by youths ages 5 – 16 with amendment three to the contract; and WHEREAS, on December 21, 2021, the City Council approved a fourth amendment to the contract with Youth Community Services for the purchase and management of gift cards for the vaccination incentive program;
WHEREAS, on April 5, 2022, the City Council approved a fifth amendment to the contract with

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Packet Pg. 42
Attachment: Resolution YCS Amendment 6 (2270 : YCS Gift Cards Update (Amendment 6)) Resolution No. XX-2021 2 of 2
Youth Community Services for the purchase and management of gift cards for the vaccination incentive program;

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes the City Manager to execute a Sixth Amendment with Youth Community Services, to extend the term through September 30, 2022 to continue the vaccine incentive.

PASSED AND ADOPTED this 7th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:
___
James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

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Attachment: Resolution YCS Amendment 6 (2270 : YCS Gift Cards Update (Amendment 6))

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Patrick Heisinger, Interim City Manager
SUBJECT: One-Time Vacation Pay Out Program
Recommendation
Adopt a Resolution authorizing the Interim City Manager implement a onetime vacation cash out, up to a combined maximum of 40 hours of vacation for eligible employees for a maximum estimated cost of $45,000.

Background
The current Memorandum of Understanding for each bargaining unit represented in the City of East Palo Alto - the Service Employees International Union (SEIU), Management Employees Association (MEA), and the Police Officers Association (POA) - provides the following language regarding vacation benefit accruals:

Minimum Continuous City Service Amount of Vacation Earned Annually 0 to 4.99 years 80 hours (3.08 hours bi-weekly)
5 to 9.99 years 120 hours (4.62 hours bi-weekly)
10 to 14.99 years 160 hours (6.15 hours bi-weekly)
15+ years 200 hours (7.69 hours bi-weekly)
Employees with fewer than 10 years of continuous public service in East Palo Alto shall not accumulate more than 288 hours of vacation.

Employees with more than 10 years of continuous public service in East Palo Alto shall not accumulate more than 320 hours of vacation.

Once the accrual cap is reached, an employee will not accrue any additional vacation until they reduce the accumulated hours below the accrual cap, either through usage or cash-out. An employee shall receive reasonable notice of the amount of accumulated vacation leave in advance of each anniversary date. Employees are notified of accrued leave balances on each bi-weekly paycheck stub.

The City allows employees to cash-out up to 40 hours of vacation time in December of each

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year.

On March 2, 2021, in response to the COVID-19 Pandemic, the City Council adopted a Resolution authorizing the City Manager to implement a Limited Leave Program (LLP) allowing the option of cashing out up to a combined maximum of 60 hours of vacation and/or management leave benefits to employees with expired or exceeded benefits lost between March 1, 2020 and March 31, 2021 due to unusual staff demands under COVID-19 essential work requirements. The cost to implement the LLP was approximately $90,000.

When the City Council took action in March 2021, more than 50% of the City’s workforce was either actively losing vacation time or were within 2-3 pay-periods from doing so. The City Council expressed concern that staff were not taking vacations and urged City leadership to better enforce employees’ vacation benefits.

Analysis
Although management of staff vacation balances has improved, and a majority of COVID-19 Pandemic restrictions have been lifted, an estimated 25% of staff are currently at or approaching the maximum vacation accrual. At this time, due to current staffing levels, police officers are unable to take vacation.

The Interim City Manager requests that the City Council consider a one-time pay-out of vacation leave for any full-time employee who is at or within 10% of their maximum vacation accrual, at the end of the second pay period in June 2022, per the applicable bargaining agreement. This action reflected in the resolution (Attachment 1) would provide additional acknowledgement of the commitment and extra effort of staff, particularly as the Administration works to improve staffing levels and fill vacancies throughout the organization.

The Administration also commits to ensuring that more employees take much-needed vacation time, especially in August, during the City Council break. Although past pay-out programs have allowed staff to be paid out for either vacation or management leave hours, this recommendation does not include management leave hours because staff will have until the end of the calendar year to utilize these hours,
Estimated Costs
Staff estimates a one-time cost of $45,000 to implement the pay-out program as described in this report.

Fiscal Impact
Funds to pay for the vacation pay-out program would come from the City’s General Fund Reserve.

Attachments

1. Resolution

3.5 Packet Pg. 45
RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO IMPLEMENT A LIMITED-TERM LEAVE

EXTENSION OR CASH-OUT OPTION PROGRAM FOR VACATION ACCRUALS WHEREAS, the COVID-19 pandemic has impacted City staff and their ability to use their Executive/Management Leave and/or Vacation Leave, which in some cases caused employees to exceed caps related to their vacation accrual limit; and WHEREAS, the City Manager is seeking authority to implement a onetime vacation cash out of up to 40 hours for eligible employees; and WHEREAS, City employees at or withing 10% of their maximum vacation accrual at the end of the second pay period in June 2022, per applicable bargaining agreement would be eligible to receive a one-time payout of up to 40 hours of vacation time; and WHEREAS, the maximum estimated cost of the one-time maximum of 40 hours vacation payout program is $45,000.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes the City Manager implement a onetime vacation cash out, up to a combined maximum of 40 hours of vacation for eligible employees for a maximum estimated cost of $45,000.

PASSED AND ADOPTED this 7th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ James Colin, Interim City Clerk Valerie J. Armento, Interim City Attorney

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Attachment: Resolution (2282 : One-Time Vacation Pay Out Program)

EAST PALO ALTO

CITY COUNCIL

Park Master Plan
Recommendation
Adopt a Resolution (Attachment 1) authorizing the Interim City Manager to execute an amendment to the contract with Verde Designs for the Dr. Martin Luther King, Jr. (MLK) Park Master Plan process to accommodate additional California Environmental Quality Act (CEQA) related tasks.

Background
On July 20, 2021, the City Council adopted a resolution authorizing the City Manager to enter into a two-year agreement with Verde Designs in an amount not-to-exceed $271,713 to complete a Master Plan for the proposed MLK Park expansion project. The estimated costs associated with the Master Plan process included the following elements:

Item Cost Estimate
Master Plan Process $90,460.00
Site Survey $18,260.00
CEQA $162,993.60
Total $271,713.60
On March 22, 2022, the City Council and Planning Commission hosted a joint Study Session regarding the proposed conceptual plan for MLK Park. At the conclusion of the meeting, the City Council unanimously approved the proposed conceptual plan and directed the City’s consultants to initiate the CEQA process for the Master Plan.

On May 18, 2022, Verde Design notified the City that, based on the revised conceptual plan, additional CEQA work would be required to complete the CEQA process, as follows:
· Expanded Site for Archaeological Survey

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· Additional Noise Modeling for Recreational Facilities · Additional Air Quality for Larger Site
· Updated Methodology for Traffic Counts
The estimated cost associated with these updated services is $14,681.

Please see Attachment 2 for a detailed accounting of the proposed Additional Services related to CEQA analysis.

Analysis
Staff recommends that the City Council authorize an increase to the contract with Verde Designs for the MLK Park Master Plan by $20,000 to account for the items described in this staff report. This amount would accommodate any additional CEQA efforts that may arise and would set contractual not-to-exceed amount at $291,713.60.

Fiscal Impact
The $20,000 would be funded by the City’s General Fund Reserve.

Public Notice
Standard.

Attachments

1. Resolution

2. Additional Services

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Resolution No. XX-2021 1 of 2
RESOLUTION NO. XX – 2022

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT AMENDMENT WITH VERDE DESIGNS FOR AN ADDITIONAL $20,000 FOR A TOTAL NOT-TOEXCEED AMOUNT OF $291,713.60 TO COMPLETE A MASTER PLAN FOR

MARTIN LUTHER KING PARK
WHEREAS, as part of the 2021-2022 Priority Setting process, the City Council identified the design of Martin Luther King (“MLK”) Park as a key City of East Palo Alto (“City”) priority; and
WHEREAS, on November 23, 2020, the City issued a Request for Proposals (“RFP”) to identify a consultant to complete the MLK Park Design Master Plan (“Plan”); and
WHEREAS, at the conclusion of a comprehensive review/interview process for the 15 proposals received, City staff identified Verde Design as the appropriate consultant to complete the Plan; and
WHEREAS, On July 20, 2021, the City Council adopted a resolution selecting Verde Design as the lead consultant to complete the master plan for MLK Park and directing the City Manager to negotiate a scope and terms for an agreement with Verde Design and entered into an agreement for a not-to-exceed amount of $271,713.60 and WHEREAS, On May 18, 2022, Verde Design notified the City that the agreement between Verde Design and the City would need to be increased by $14,681 to account for additional CEQA tasks; and
WHEREAS, staff is requesting an additional $5,319, for a total of $20,000 to account for additional unanticipated tasks that may arise prior to the master plan being completed.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY directs the City Manager to execute a contract amendment, in a form approved by the City Attorney, with Verde Designs, for an additional $20,000 for a total not-to-exceed amount of $291,713.60 to complete a master plan for Martin Luther King Park.

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Attachment: Resolution (2281 : Contract Amendment with Verde Designs) Resolution No. XX-2021 2 of 2
PASSED AND ADOPTED this 7th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Interim City Clerk Valerie J. Armento, Interim City Attorney

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Attachment: Resolution (2281 : Contract Amendment with Verde Designs) May 18, 2022
Patrick Heisinger
Assistant City Manager
City Manager’s Office
2415 University Avenue
East Palo Alto, CA 94303
SUBJECT: Martin Luther King, Jr. Park – Additional Services Request #1 CEQA Items Additional Scope
Verde Design Project No. 2018900
Dear Patrick,
We are requesting additional services to cover environmental review services associated with additional parcels and park features as described in the master plan. This additional work is described below:

1. Expanded Site for Archaeological Survey – since the initial RFP the project site has expanded to include the undeveloped land in the east under the PG&E easement and the proposed new road with connection to O’Connor Street.

2. Additional Noise Modeling for Recreational Facilities – the project expansion now includes recreational facilities such as the pickleball and basketball courts that were beyond the initial project expansion of new lighted sports fields into the Beech Street parcel.

3. Additional Air Quality for Larger Site and New Road – expansion of the park for construction and operation of a new road to O’Connor Street generate additional air quality emissions thus requiring additional modeling.

4. Traffic Counts – due to changes in traffic patterns from the pandemic, it was assumed prepandemic traffic counts would be utilized. Public Works requested that the scope of work be revised to include new traffic counts at all study intersections.

We request an additional service in the amount of $14,681 for our team for support of this effort. Our services are proposed as time and materials not to exceed.

If this proposal meets with your approval, please sign and return the original to our office, along with a signed service order or contract amendment. Thank you for the opportunity to work with you and the team on this project.

Respectfully Submitted, APPROVED BY:

Verde Design, Inc.

Derek McKee, RLA
Principal Date
Cc: Verde Design Distribution

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Attachment: Additional Services (2281 : Contract Amendment with Verde Designs)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Glen March, Senior Engineer
Amy Chen, Community & Economic Development Director
Humza Javed, City Engineer
SUBJECT: Comment Letter to the Notice of Preparation for the Strategy to Advance Flood Protection, Ecosystems and Recreation along the San Francisco Bay Project Recommendation
It is recommended that the City Council direct the City Manager to transmit the final comment letter to the San Francisquito Creek Joint Powers Authority (SFCJPA) to serve as the City’s official comments to the NOP for the Project.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 2: Enhance Economic Vitality
Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
The SFCJPA is a regional government agency composed to the cities of East Palo Alto (City), Menlo Park, and Palo Alto, the San Mateo County Flood and Sea Level Rise Resiliency District and the Santa Clara Valley Water District. The City’s Mayor Ruben Abrica is currently the Board Chairperson.

The Project is a multi-benefit project to: (1) protect communities to reduce the risk of flooding due to coastal flooding and sea level rise; (2) enhance and restore ecosystems; and (3) improve trails and shoreline access in the project area.

The SFCJPA prepared the NOP (Attachment 2) as required by the California Environmental Quality Act (CEQA). The NOP was released on April 22, 2022. Comments to the NOP are due June 15, 2022.

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The purpose of the NOP is to allow agencies to comment on the scope and content of the environmental information which is germane to each agency’s statutory responsibilities in connection with the proposed Project.

After receipt of comments, the SFCJPA will initiate the conceptual engineering phase. As part of the conceptual engineering phase, the SFCJPA will consider comments from to the NOP in developing the conceptual engineering design and project description.

Future completion milestones for various tasks identified in a preliminary project schedule are as follows:
· Initial Geotechnical Investigation - January 2023
· 30% Engineering Design - June 2023
· Draft Project Description - August 2023
· Draft Environmental Impact Report - Early 2024
The Project is divided into two reaches within the City. The North of Bay Road Reach extends from the University Avenue/Bay Trail intersection to Bay Road. The North of Bay Road reach encroaches on the 2020 Bay Road development property, EPA Waterfront development property, Mid-Peninsula Open Space property, and Infinity Auto Salvage property. The South of Bay Road Reach extends from Bay Road to the San Francisquito Creek. The South of Bay Road Reach encroaches on The Landing property, several other properties, and is near Martin Luther King, Jr. Park. Nearly all cross sections in the NOP show the Bay Trail reconstructed on top of the levee. The SFCJPA intends to implement the South of Bay Road reach prior to the North of Bay Road Reach.

Nearly all levee alignment options in the City are constructed within a band of land that extends from the shoreline to 100 feet inland of the shoreline. The Ravenswood Business District (RBD) developments are planning recreational uses and shoreline access improvements in the 100 feet shoreline band. The SFCJPA is working with the RDB developers to coordinate improvements within the 100 feet shoreline band.

The shoreline band is regulated by the San Francisco Bay Conservation & Development Commission (BCDC). The Project and portions of the RBD developments within the 100 feet shoreline band will require BCDC permits. Under the McAteer-Petris Act, BCDC has certain requirements and goals for improvements in the 100 feet band, which are found on the BCDC website. <https://bcdc.ca.gov/> BCDC typically does not permit buildings within the 100 feet shoreline band. The planned RBD building footprints are outside of the 100 feet shoreline band as new buildings within the 100 feet shoreline band are inconsistent with the shoreline access and water-oriented uses that are essential to the public welfare of the Bay Area.

The SPCJPA presented the Project to the City’s Public Works and Transportation Commission on May 18, 2022.

Analysis
Staff supports the Project.

The attached comment letter documents the City’s concerns about the information contained in the NOP.

General Plan and Ravenswood Business District Specific Plan

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The City is responsible for regulating land use within its boundaries.

The Project levees and improvements are proposed within the RBD Specific Plan (Specific Plan) area. As identified in the General Plan, the RBD is high priority for the City for future redevelopment. The General Plan and Specific Plan recognize the value of the Bay, specifically the Ravenswood Open Space Preserve and the Palo Alto Baylands Natural Preserve. The City’s policies place great importance on the connected public open spaces within this area and making sure that new development is compatible and provides benefits to the community. The City has concerns about the impact of the proposed levee on future development and the ability to implement the Specific Plan goals. The parks and trails provide space for active and passive recreation and enhance the visual appearance of the City. The levee may limit the ability to realize these goals. The General Plan also values community involvement. Policy 1.7 encourages public involvement in every aspect of park and open space acquisition, design, construction and programming. The City requests that the SFCJPA work with East Palo Alto to design a levee system that will not limit the ability to implement the City’s goals and policies regarding the RBD. The City would appreciate greater coordination to ensure that both the SFCJPA and City’s goals are met, including presentations to the City Council regarding how the City’s concerns are being addressed, not less than quarterly. The coordination should also include greater public involvement.

As part of the planning application process, the City will require, as a condition of approval, certain landowners to dedicate construction, maintenance, and public access easements for the levee and Bay Trail. The location of the easements will consider recreational uses and shoreline access improvements in the 100 feet shoreline band proposed by the landowners.

Staff is concerned that the proposed levee alignment will be inconsistent with the landownerprovided easements.

The Specific Plan includes the Loop Road that connects to University Avenue to Bay Road. A proposed levee alignment shows the Loop Road, Bay Trail, and levee in a narrow corridor between the University Village subdivision and the railroad right-of-way. Staff is concerned that the proposed improvements will not fit within the narrow corridor.

A levee alignment in the North of Bay Road reach shows the Bay Trail relocated onto the 2020 Bay Road property, EPA Waterfront property, and Infinity Auto Salvage property. Staff is concerned that high-speed bicycles on the relocated Bay Trail may be inconsistent with the pedestrian areas proposed as part of the recreational uses and shoreline access improvements on the properties.

Parks Master Plan and Martin Luther King Jr. Park Master Plan Proximity and access to high-quality parks, green spaces, and recreation areas have positive and long-lasting impacts on individual and community health. Research confirms that living close to a park significantly increases how frequently residents exercise, and reduces cardiovascular disease, and childhood obesity rates.

Unfortunately, the City’s park system is scarred with the historic impacts of inequitable investment and racialized land-use decisions that have concentrated environmental injustice and lack of public investment in the City compared to neighboring cities. The City is “park poor.”
For today’s population of close to 30,000 people, the City currently only has approximately 24 acres of accessible public park land. To achieve the minimal goal of 3.0 park acres per 1000

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people, the Parks Master Plan has the challenge of identifying an additional 66 park acres. The General Plan’s population projection for 2035 adds more than 7,000 new residents, increasing the total park area deficit in the future to 112 acres. Overall, the Bay Trail and the shoreline park opportunities identified as part of future developments are critical to ensuring the City provides the park and open spaces needed to ensure residents have options for recreation and improved physical and mental health and wellness.

The existing Bay Trail and its adjacent open spaces along the City's perimeter are critical public park resources for the community today. It is important for the levee improvement project to identify the trailheads and access points planned for the Bay Trail and to maximize the number of access points between the community and the new Bay Trail.

In addition, the open spaces and shoreline band areas identified in the RBD Specific Plan and Martin Luther King, Jr. Park Master Plan are critical future opportunities to meet the community’s park needs today and in the future. The planned improvements at Martin Luther King, Jr. Park include the expansion of MLK to the west towards the Bay. Staff is concerned that the Project will not consider the future park improvements.

Throughout many phases of community engagement efforts for the future of East Palo Alto’s shoreline, a common theme has included the opportunity to expand public access as part of the redevelopment and infrastructure improvements. The design of the 3-to-1 levee slopes along the City-facing perimeter should include opportunities for adjacent properties to back-fill and meet the new Bay Trail grade, creating an accessible, gradual slope that maximizes the area available for usable public access and recreation. Those areas could also be designed to provide more open space and recreational uses.

Climate Action Plan
The levee is critical to support the City’s planned resiliency and adaptation to sea level rise.

The City is concerned about how the SFCJPA will implement the levee to ensure critical infrastructure is fully protected from sea level rise and mitigates anticipated impacts into the future. The levee design shall adhere to the ’Citys Climate Action Plan, <https://www.cityofepa.org/econdev/page/climate-action-plan> concurrently under public review. Design standards shall ensure guidance provided by the California Ocean Protection Council (OPC) and San Mateo County’s Sea-Level Rise Vulnerability Assessment are followed. <http://seachangesmc.org/vulnerability-assessment/> According to San Mateo County’s Assessment, the City of East Palo Alto has 335 acres of land at risk in the baseline scenario, 714 acres in the mid-level scenario, and 992 acres in the high-end scenario. Nearly 60 percent of East Palo Alto’s population and almost all of the City’s wetlands are vulnerable to sea level rise under the mid-level scenario. Critical infrastructure and community-serving facilities included energy and water infrastructure, local roadways, schools, emergency shelters, and parks would also be impacted by sea level rise. Design considerations of the planned levee shall result in infrastructure which equates to resiliency across all sea level rise risks including increased wave action, rising groundwater tables and saltwater intrusion, increased erosion (i.e., landward shoreline retreat) and changes in sediment supply in lands pertaining to the proposed project.

Vehicle Access to Levee and Bay Trail
Vehicle access points to the top of the levee should be provided for maintenance vehicles, police vehicles, fire vehicles/equipment, and ambulances. Staff is concerned that levee may not be sufficiently wide to allow vehicles to safely drive on the levee due to the steep embankment. Staff is concerned that the levee/Bay Trail may not be sufficiently wide to allow

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for vehicles, pedestrians and cyclists to pass moving and/or parked vehicles. Staff is also concerned that the levee may have an inadequate number of access points for vehicles. Staff is concerned that the levee pavement section may not be designed for vehicle traffic. Staff is concerned that the geometric design of the Bay Trail may not accommodate vehicles, especially near the PG&E poles and towers and the existing Bay Trail alignment near Runnymede Street.

Pedestrian, Cyclists, and Persons with Disabilities Access to Bay Trail Along the Bay shoreline, BCDC’s land use authority relates primarily to public access. The Commission bases the approval of a project primarily on whether or not the development provides maximum feasible public access, consistent with the project. The City shares the BCDC’s goals regarding providing maximum feasible access to the shoreline. The City’s priorities regarding public access are identified in the 2007 East Palo Alto Bay Access Master Plan. Staff is concerned that the maximum feasible public access to the Bay shoreline is provided.

Existing access points to the Bay Trail are located at Daphne Way, O’Connor Street, Cypress Street, Garden Street, Runnymede Street, Weeks Street, Bay Road, and Martin Luther King, Jr. Park, etc. The existing access points should be reconstructed by the Project. Staff is concerned that the Project maintain existing access points to the Bay Trail.

The landowners in the RBD development plan to significantly increase the shoreline access on their properties.

New and feasible access points to the Bay Trail should be considered at Beech Street, Stevens Avenue, Fordham Street, Rutgers Street, and Tulane Avenue which terminate near the existing or relocated Bay Trail. Staff is concerned that new access points may not be considered near the existing or relocated Bay Trail.

Staff is concerned that ADA compliant access will not be provided.

Contaminated Soil and Groundwater
Contaminated soil and groundwater are well-known and documented issues in areas from the Weeks Street terminus, north along East Palo Alto’s shoreline to Fordham Street. Additionally, imported topsoil in northern properties of the City from Demeter Street to Fordham Street have been documented to include PCBs and other constituents of concern. Staff recommends that the following Permitting agencies shall be included in design review for these areas to ensure appropriate remediation: California Department of Toxic Substances Control, the Environmental Protection Agency, and the Bay Area Air Quality Control Board.

A levee alignment crosses the Infinity Auto Salvage property, as well as other properties that may have contaminated soil and/or ground water. If the Project acquires any property in fee and the eventual property owner is the City, staff is concerned about the City’s liability associated with the contaminated soil and/or groundwater on the properties.

Tidal Marsh Overlooks on Bay Trail
An overlook can provide a place for cyclists and pedestrians to stop and clear the Bay Trail, view the marshes, sit at a bench and rest, and read educational and information signage. Staff is concerned that the Project will not provide overlooks for people to clear the trail, rest, and

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enjoy various amenities.

Lighting of Bay Trail for Public Safety
As part of the City’s public outreach effort for the City’s Park Master Plan, residents identified adding lighting to increase visibility at night as the most important and best means to address public safety concerns at parks.

Lighting on the Bay Trail will help address residents’ safety concerns and increase utilization of the Bay Trail in the City. Lighting would also benefit the cyclist safety as many commute to work via the Bay Trail before and after dark.

City Storm Drain Facilities
Storm drain facilities, including drainage pipes, outfalls, ditches, swales, retention basins, pump stations, and overland sheet flows convey storm water from the City to Bay. Staff is concerned that the Project may obstruct storm water or reduce the capacity of the facilities.

Minimizing Construction Impacts
Staff is concerned about impacts to the City during the construction of the Project.

Parking within the City is limited. The Project should provide on-site parking for all construction personnel, construction offices/trailers, and staging areas for materials and equipment. The City may implement a Resident Parking Permit program that would limit parking on streets to residents.

Staff is concerned about damage to its streets and impacts to traffic due to trucking and hauling, especially hauling of embankment material. Project shall adhere to the requirements of Municipal Code Section 8.28 including allowable haul routes determined by the Public Works Director.

Staging or lining up trucks before loading or offloading materials should take place on-site or on private property as a contract requirement. No staging of trucks will be permitted on City streets.

Staff is concerned about the construction noise disturbing residents. Hours of construction activity shall be limited to hours described in Municipal Code Section 15.04.125 unless further limited by the Public Works Director. For example, installing sheet piles may be limited to hours from 9 am to 4 pm. Any deviations from the allowable hours of construction activity shall be approved by the Public Works Director.

Staff is concerned about settlement of nearby structures due to construction activities. The Project should implement of settlement monitoring program to address settlement concerns, complaints, and claims.

Well planned Bay Trail detours will improve cyclists’ experience during construction. Staff is concerned that the design of detours may not be included in the construction contracts. The detour design should include creating Class II bikeways where Class II bikeways are not feasible.

Public Notices including door hangers, social meetings postings, or websites are essential to informing the public about changes to their daily life. The Project should develop a

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comprehensive public outreach plan for construction activities.

The Project should consider phasing construction within a reach as opposed to closing an entire reach for the duration of construction. As construction windows may be limited for environmental reasons, the construction contract should ensure the Bay Trail is useable when no construction is permitted due to environmental restrictions to the greatest extent feasible.

Stormwater pollution generated by the Project is a concern of the City. The construction contract should require daily sweeping of City streets, including haul routes, inlet protection, and site watering to minimize airborne dust.

Staff is concerned about the Contractor importing contaminated soil for construction. An independent lab should be hired by the SFCJPA to test material, as opposed to the Contractor sampling and testing the material.

City Permits
The Project will require City Permits, which may include the following:
· Encroachment Permit(s). (Municipal Code Sections 13.06.200 and 13.06.280) · Hauling /Oversize Load Transportation Permit(s) (Municipal Code Sections 8.28 and 10.36)
· Grading Permit(s) (Municipal Code Section 15.48)
· Tree Removal Permit(s) (Municipal Code Section 18.28) City Streets
The proposed levee is near the cul-de-sacs on Weeks Street, Runnymede Street, Garden Street, Cypress Street, Beech Street, and O’Connor Street. The cul-se-sacs are essential for allowing vehicles, especially fire vehicles/equipment, to turn around. Staff is concerned that the levee may adversely impact existing cul-de-sacs.

The improvements will include (a) installing a new above ground diesel fuel storage tank on the north side of pump station at the elevation of the existing Bay Trail; and (b) removing the existing underground fuel storage tanks on the east side of the Pump Station. Staff is concerned that the Project will not consider the future improvements at the Pump Station.

Bay Trail and Levee Maintenance
The portions of the existing Bay Trail within the City are maintained by the City, City of Palo Alto, and Mid-Peninsula Regional Open Space District. Staff is concerned about any increase in human resources and/or financial resources that would be necessary for the postconstruction maintenance of the Bay Trail and Tidal Marsh Transition Zones by the City.

The proposed 3:1 levee embankment side-slopes will be difficult for workers to safely maintain due to the steepness. Embankment side-slopes not steeper than 4:1 are industry standard

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(See Caltrans Highway Design Manual). If 3:1 side-slopes are required by the Project, staff is concerned that low to no maintenance plantings will not be installed on the side-slopes to minimize maintenance of the embankment slopes.

Future Levee Construction
Sea level rise may require an increase to top of levee elevation. Increasing the top of levee requires increasing the width of the levee embankment footprint. The City wishes to avoid filling the tidal marsh transition zone if the top of levee elevation must be increased. Permitting and construction of a project within the tidal marsh transition zones is more difficult than compared to a project on the landward side of the levee. Staff is concerned that adequate space on the landward side of the levee will not be provided for the additional embankment width required to increase the top of levee elevation, if required.

Levee Crossings at Bay Road and Railroad Crossings
The levee will pass over Bay Road and the Union Pacific Railroad tracks near University Avenue. The City is concerned about how the SFCJPA will implement the levee at Bay Road and the Railroad Crossing crossings including effectiveness and impact to the roads and railroads when deployed and not deployed.

Next Steps

If directed, the City Manager will transmit the comment letter, as modified by City Council, to the SFCJPA.

Fiscal Impact
There are no fiscal impacts associated with the City Council action described in the staff report.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Attachments

1. SAFER Bay Project Notice of Preparation dated April 22, 2022

2. Draft Comment Letter to SAFER Bay Project NOP

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Notice of Preparation
Notice of Preparation
To: From:
(Address) (Address)
Subject: Notice of Preparation of a Draft Environmental Impact Report ________________________________________willbetheLeadAgencyandwillprepareanenvironmental impact report for the project identified below. We need to know the views of your agency as to the scope and content of the environmental information which is germane to your agency's statutory responsibilities in connection with the proposed project. Your agency will need to use the EIR prepared by our agency when considering your permit or other approval for the project.

The project description, location, and the potential environmental effects are contained in the attached materials. A copy of the Initial Study ( is is not ) attached.

Due to the time limits mandated by State law, your response must be sent at the earliest possible date but not later than 30 days after receipt of this notice.

Please send your response to _______________________________________________ at the address shown above. We will need the name for a contact person in your agency.

Project Title:

Project Applicant, if any:

Date Signature
Title
Telephone
Reference: California Code of Regulations, Title 14, (CEQA Guidelines) Sections 15082(a), 15103, 15375.

Tess Byler

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Notice of Preparation April 22, 2022

NOTICE OF PREPARATION
Strategy to Advance Flood Protection,
Ecosystems and Recreation along San Francisco
Bay Project Environmental Impact Report
Introduction
In accordance with the provisions of the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the San Francisquito Creek Joint Powers Authority (SFCJPA), as CEQA Lead Agency, is preparing an environmental impact report (EIR) for the proposed Strategy to Advance Flood Protection, Ecosystems and Recreation along San Francisco (SAFER) Bay Project (SAFER Bay Project or Project), which consists of engineered and natural flood protection features, habitat restoration, and recreation improvements.

The SFCJPA has prepared this Notice of Preparation (NOP) of an EIR in connection with the Project to inform the public, responsible and trustee agencies, and interested parties about the Project and the intent to prepare an EIR. The purpose of an NOP is to provide sufficient information describing the Project and the potential environmental effects to enable the responsible agencies to make a meaningful response related to the scope and content of the EIR (CEQA Guidelines Section 15082). The purpose of the EIR is to provide information about potential significant physical environmental effects of the Project, to identify possible ways to minimize the significant effects, and to describe and analyze possible alternatives to the Projects.

The SFCJPA is seeking your views regarding the scope and content of the EIR in connection with the Project.

Project Background
San Francisquito Creek Joint Powers Authority
The SFCJPA is a regional government agency composed of the cities of East Palo Alto, Menlo Park, and Palo Alto, the San Mateo County Flood and Sea Level Rise Resiliency District and Santa Clara Valley Water District. The SFCJPA plans, designs and implements multi-benefit projects across jurisdictional boundaries to protect communities from flooding, including flooding from high creek flows, coastal flooding, and sea level rise, that enhance and restore ecosystems and improve trails in Project areas.

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SAFER Bay Project Feasibility Report
In 2016 the SFCJPA released a public draft Feasibility Study that evaluated options to address current tidal flooding and projected sea level rise, known as the Strategy to Advance Flood Protection, Ecosystems and Recreation along San Francisco Bay – East Palo Alto and Menlo Park Public Draft Feasibility Study (Feasibility Report).1 The overall purpose of the Feasibility Report was to evaluate flood protection alternatives along the San Francisco Bay shoreline. The Feasibility Report was provided to stakeholders and agencies and the SFCJPA conducted six public engagement events. The proposed Project described in this NOP has been updated from the 2016 Feasibility Report based on stakeholder input and studies in the area prepared by others, including the June 2020 Dumbarton Bridge West Approach + Adjacent Communities Resilience Study, 2019 San Francisco Bay Shoreline Adaptation Atlas, and the 2017 Resilient by Design challenge.2 Project Description
Project Location
The SAFER Bay Project site is located immediately west of San Francisco Bay along approximately 7 miles of the shoreline from the Menlo Park/Redwood city border south along East Palo Alto to East Palo Alto/Palo Alto border. The Project connects to and is consistent with design criteria for the SFCJPA’s completed San Francisquito Creek flood protection and ecosystem restoration project (Figure 1, at the end of this document). The project has been divided into 8 segments as described below from the Redwood City border to City of Palo Alto border, shown on Figure 1.
• Marsh Road (Marsh Rd)
• Bedwell Bayfront Park (Bedwell)
• Bayfront Expressway (Bayfront)
• Tech Campus (Tech)
• Substation and Marsh Restoration (R1/R2)
• Dumbarton Approach (Dumbarton)
• North of Bay Road--East Palo Alto (EPA
North)
• South of By Road--East Palo Alto (EPA
South)
The Project site is within the cities of Menlo Park and East Palo Alto, on both public and privately owned property. The Project includes actions within the Don Edwards National Wildlife Refuge (Refuge), including Refuge-managed land in Laumeister and Faber Tract Marshes (owned by City of Palo Alto) and Ravenswood Open Space Preserve (owned by Midpeninsula Open Space District). The Project also includes actions within land owned by the San Francisco Public Utilities Commission, the Cargill Corporation, and many others; and within the Caltrans State Route 84 right-of-way at the western approach to the Dumbarton Bridge. Appendix NOP-1 lists the Assessor Parcel Numbers of properties that are wholly within, partially within, or within 100 feet of the footprint of the Project site (excluding easements).
1 SFCJPA, 2016. Strategy to Advance Flood Protection, Ecosystems and Recreation along San Francisco Bay – East Palo Alto and Menlo Park Public Draft Feasibility Study. 2 The Dumbarton Bridge West Approach + Adjacent Communities Resilience Study can be found at:
https://mtc.ca.gov/sites/default/files/documents/2021-05/Dumbarton-Bridge-West-Approach-AdjacentCommunities-Resilience-Study-Final-Report.pdf. The San Francisco Bay Shoreline Adaptation Atlas can be found at: https://www.sfei.org/adaptationatlas. The Resilient by Design challenge website can be found at:
http://www.resilientbayarea.org/.

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Project Overview
The SAFER Bay Project will provide resiliency to coastal flooding and sea level rise in East Palo Alto and Menlo Park as well as habitat and recreation improvements. Guidance from the Ocean Protection Council recommends projects now in development should include 3.5 feet of sea level rise resilience.3 The Project will connect to adaptation actions under consideration in Redwood City and unincorporated San Mateo County to the north and in the City of Palo Alto to the south.

The multi-benefit Project includes more than 550 acres of habitat restoration and 1 to 2.5 miles of new or improved trails.

The SFCJPA is collaborating with the South Bay Salt Ponds Restoration Project to restore former salt production ponds, Pond R1 and Pond R2, located in the Ravenswood Complex, as part of the SAFER Bay Project. The restoration scenarios include tidal marsh or a combination of tidal marsh and managed ponds. The Project will construct levees, floodwalls and other flood protection features necessary to enable the restoration of tidal action to these ponds and includes design and construction of the pond restoration itself in order to mitigate for the Project’s impacts to jurisdictional wetlands and aquatic habitats. The Project also proposes to increase the diversity of habitat by building tidal salt marsh-upland transition zone habitat (transition zone habitat) on the bayward slope of appropriate segments of levee adjacent to existing and/or restored tidal salt marsh.

In addition, the Project proposes to enhance recreational access to the shoreline by creating new sections of the Bay Trail and by placing existing sections of the Bay Trail atop new levees where they will be less susceptible to flooding.

Consistent with CEQA, the SAFER Bay Project EIR will contain both project-level and programlevel evaluations.4 Those Project components with sufficient design and construction information will be evaluated at a project level of detail and those lacking sufficient detail will be evaluated programmatically, in accordance with CEQA Guidelines Sections 15161 and 15168. Consistent with CEQA Guidelines Section 15168, the SAFER Bay Project EIR will provide a comprehensive review of the overall nature and magnitude of potential environmental impacts so that the SFCJPA and its member agencies can make informed decisions for the Project while considering impacts and mitigation strategies for the whole Project. Figure 1 indicates those Project components that will be evaluated at a project level of detail and those to be evaluated at a program level of detail.

Project Need, Purpose and Objectives
Need for the Project
Currently, the communities of East Palo Alto and Menlo Park are exposed to coastal flooding from San Francisco Bay, and this situation is expected to worsen with sea level rise. These areas are within the existing 1-percent annual chance (commonly referred to as the 100-year flood event)5 3 Sea-Level Rise Leadership Team, January 2022. State Agency Sea-Level Rise Action Plan for California. 4 CEQA Guidelines Section 15168 provides for the programmatic environmental review of a plan or program with multiple components (projects or actions) that are related either: geographically, as logical parts in the chain of contemplated actions, in connection with the issuance of rules, regulations, plans, or other general criteria to govern the conduct of a continuing program, or as individual activities carried out under the same authorizing statutory or regulatory authority and having generally similar environmental effects that can be mitigated in similar ways. 5 These are areas subject to flooding by the flood event with a 1 percent chance of occurring in any individual year.

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flood hazard area as mapped by the Federal Emergency Management Agency (FEMA). With respect to habitat, the San Francisco Bay has lost 95% of historical tidal marsh habitat,6 and with that has been a loss of the ecosystem services that tidal marsh habitat provides, including nesting and foraging habitat and upland refugia for threatened and endangered species such as California Ridgeways rail, western snowy plover, and salt marsh harvest mouse. The SAFER Bay project provides an opportunity to restore critical habitat. In some areas of the Project site, tidal salt marsh habitat cannot be restored until adequate flood protection for landward uses is in place.

Project Purpose and Objectives
The overall purpose of the Project is to protect people, property and infrastructure from current tidal flooding and projected sea level rise through engineered and natural features that enhance shoreline ecosystems and improve recreational opportunities. The specific objectives of the Project include:
• Reduce the risk of flooding within the cities of East Palo Alto and Menlo Park from San Francisco Bay waters, including consideration of up to 3.5 feet of future sea level rise, and support the communities’ objective to be removed from the Federal Emergency Management Agency (FEMA) floodplain;
• Enable adaptation to our changing climate by using tidal marsh areas for flood protection in ways that sustain marsh habitat and facilitate marsh restoration associated with the South Bay Salt Ponds Restoration Project (SBSPRP) and other restoration efforts; • Expand opportunities for recreation and community connectivity in collaboration with the Bay Trail Program and efforts to enhance local trails;
• Minimize future maintenance requirements; and
• Partner with agencies and organizations pursuing similar goals and objectives and with assets to be protected by the Project.

Design Criteria
The Project is being designed to satisfy current FEMA coastal flood protection requirements (i.e., the existing 100-year event with required freeboard for FEMA accreditation) and an additional 3.5 feet of tidal elevation to account for anticipated sea level rise as well as other applicable FEMA design criteria (e.g., for the evaluation of settlement and structural stability).7 Proposed Shoreline Protection, Restoration and Recreation Proposed integrated shoreline protection, restoration, and recreation features, which vary by reach depending on existing site characteristics, are described below. (A reach is a section or length of bank or waterway.) As shown on Figure 1, the Project is divided into reaches based on local 6 Goals Project, 1999. Baylands Ecosystem Habitat Goals. Prepared by the San Francisco Bay Area Wetlands Ecosystem Goals Project, U.S. Environmental Protection Agency, San Francisco, Calif./S.F. Bay Regional Water Quality Control Board. 7 The SFCJPA is using the Ocean Protection Council’s 2018 and 2020 Sea Level Rise Guidance to guide Project design.

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geography.8 The precise routes within some reaches have not been finalized and could depend on funding, land acquisition, and other factors. For example, multiple alignment options are under consideration for the Dumbarton Approach segment (see Figure 1). The SFCJPA will identify a preferred alignment in consultation with regulatory agencies and stakeholders and continuing investigation of engineering, environmental, and regulatory constraints.

Shoreline Protection
The Project includes the following features to provide protection from coastal flooding to parts of Menlo Park and East Palo Alto:
• Levees. A typical levee, composed of engineered fill with geogrid reinforcement, will have 3:1 (horizontal to vertical) side slopes, a final levee crest height of 16 to 17 feet North American Vertical Datum of 1988 (NAVD 88)9, and a base width of about 60 to 100 feet. Habitat transition zones, described in the next section, will be integrated on the water-side of some levee segments. In some cases, levees might be constructed and raised in stages given the longterm impacts of sea level rise and budget limitations. An assessment of high tide refugial habitat functions in the face of sea level rise will be performed in existing high-quality marshes. This assessment will be utilized in collaboration with resource agencies to determine if and where the project would propose construction of transition zone or other types of high tide refugial habitats in existing high-quality marshes. (The issue of emergent groundwater on the landward side of levees will be investigated in the EIR.)
• Floodwalls. Where existing spatial or other constraints do not allow for the construction of a levee, concrete or steel floodwalls could be constructed. Habitat transition zones, described in the next section, will be integrated on the water-side of some floodwalls. • Flood Risk Reduction Structures. There are several existing roadways and drainage ditches that cross the Project site. Where it is impractical to raise roadways to an elevation sufficient to provide flood protection, a passive flood risk reduction structure10 such as a flood gate could be constructed. Additional improvements to infrastructure (e.g., pump stations) in association with the flood risk reduction structures are proposed.

Figures 2 through 5 (at the end of this document) present representative cross-sections of proposed shoreline protection features in combination with habitat restoration.

Habitat Restoration, Creation and Enhancement
Tidal Salt Marsh Restoration
The South Bay Salt Pond Restoration Project’s (SBSPRP’s) programmatic environmental impact statement/report (EIS/R) calls for large scale restoration of tidal salt marsh habitat in the vicinity of the SAFER Bay Project site.11 The SBSPRP is currently using an adaptive management process to guide restoration activities and the SFCJPA is coordinating closely to ensure consistency with 8 The Feasibility Report divided the Project site into 9 reaches. The reaches have been refined and consolidated since the Feasibility Report was completed and the nomenclature has been updated with input from local stakeholders. 9 The North American Vertical Datum of 1988 is the official vertical datum of the United States. 10 A passive structure is defined as a feature that can be closed at beginning of a storm event and left alone without any additional management except to reopen at the end of the storm event. 11 U. S. Fish and Wildlife Service, et al, 2007. South Bay Salt Pond Restoration Project Programmatic Environmental Impact Statement/Report.

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SBSPRP goals and objectives. The SBSPRP EIS/R’s Alternative B-Managed Pond Emphasis includes the restoration of tidal salt marsh in Ponds R1 and R2, which are located in SAFER Bay’s Substation and Marsh Restoration Reaches.

The Project will construct the necessary flood protection to allow tidal restoration of Ponds R1 and R2. That said, some portion of managed pond habitat may be retained to provide shorebird habitat (for western snowy plover in particular) pending further ecological assessment of the appropriate balance of restored marsh to managed pond in collaboration with the SBSPRP’s project management team. The project will implement tidal marsh restoration (and potentially some proportion of managed pond enhancement) at Ponds R1 and R2 early in the construction sequence to reduce the temporal loss of tidal marsh habitat from levee fill in marshes. A later phase of the project may include tidal marsh restoration of the bayward portion of Pond SF2 and the adjacent diked marsh between SF2 and the Cooley Marsh (located in the Ravenswood Open Space Preserve). This action would substantially improve tidal marsh habitat connectivity for wildlife movement along the bayshore.

Tidal Marsh-Upland Transition Zone Habitat
The Project includes the creation of broad, gently sloped tidal marsh-upland transition zones (also referred to as horizontal levees), the ecological benefits of which include:
 Provision of high-tide refugia for the endangered salt marsh harvest mouse and California Ridgway’s rail, considered essential for the survival and recovery of these species;12  Provision of essential habitat for endangered marsh plants (e.g., salt marsh bird’s beak and California sea blight) and promotion of high plant and animal community diversity;13  Increased habitat diversity and biodiversity; and
 Accommodation of landward movement of tidal marsh with sea level rise.

As Project design progresses, the SFCJPA will consider the following factors, in consultation with stakeholders including the SBSPRP, to determine optimal locations and footprints of transition zone habitats:
• Minimizing fill within tidal marshes;
• Set-backs and site constraints;
• Quality and proximity of existing tidal habitats;
12 U. S. Fish and Wildlife Service, 1984. Salt Marsh Harvest Mouse and California Clapper Rail Recovery Plan.

Shellhammer, H., 2012. Small Mammals. Ecology, Conservation, and Restoration of Tidal Marshes, the San Francisco Estuary. San Francisco Bay Area Wetlands Ecosystem Goals Project, 2015. The Baylands and Climate Change: What We Can Do. Baylands Ecosystem Habitat Goals Science Update. U. S. Fish and Wildlife Service, 2013. Recovery Plan for Tidal Marsh Ecosystems of Northern and Central California. 13 U. S. Fish and Wildlife Service, 2013. Recovery Plan for Tidal Marsh Ecosystems of Northern and Central California. San Francisco Bay Area Wetlands Ecosystem Goals Project, 1999. Baylands Ecosystem Habitat Goals.

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• Relative importance of existing tidal habitats for endangered wildlife species; and • Projected inundation associated with sea level rise and sedimentation and the resulting sustainability of existing tidal marshes.

Tidal marsh habitat or a mix of tidal marsh and managed pond habitats will be restored in Ponds R1/ R2. Transition zone habitat will be restored in Ponds R1/R2 and R4, as described below. The relative amount of restored tidal marsh, managed pond and transition zone habitats will be evaluated in collaboration with the SBSPRP.
• Tidal Marsh-Upland Transition Zone Habitat at Pond R1/R2. The Project will construct a broad, gently sloped habitat transition zone that will increase the surface area and vertical extent of transition zone habitat adjacent to the footprint of restored tidal salt marsh. High tide refugia could also be created within portions of Pond R1 to provide escape cover within the restored marsh. The locations of transition zone habitat will depend upon the footprint of restored tidal habitat versus enhanced managed pond habitat (to be determined in collaboration with the SBSPRP project management team).
• Tidal marsh-upland transition zone habitat construction at Pond R4. Similar to Pond R2, the Project will construct a broad, gently sloped habitat transition zone that will increase the surface area and vertical extent of transition zone habitat relative to the amount of transition zone habitat restored in Pond R4 by the SBSPRP. The design will be developed in collaboration with the SBSPRP project management team.

Western Snowy Plover Breeding Habitat Enhancement
The western snowy plover is known to breed in Pond R3.14 The Project could enhance snowy plover breeding habitat in Pond R3 by placing oyster shell or similar material within a portion of Pond R3. The precise locations of enhancement work will be determined in collaboration with the SBSPRP project management team.

Recreation
The Project overlaps with segments of the San Francisco Bay Trail and other trails. The Project includes proposed improvements to existing recreational access to the shoreline. Figures 2 through 7 present representative conceptual designs for trails to be constructed as part of the Project. By elevating these shoreline trails, the Project will reduce the trails’ exposure to flooding, thereby increasing public access and trail longevity. Other options include new trails that connect to existing Bay Trail.
14 Pearl, B. and A. Chen, 2018. Western Snowy Plover Monitoring in the San Francisco Bay. Annual Report 2017.

Prepared by the San Francisco Bay Bird Observatory for the Don Edwards San Francisco Bay National Wildlife Refuge and the California Department of Fish and Wildlife. Pearl, B., A. Chen, and Y. Wang, 2019. Western Snowy Plover Monitoring in the San Francisco Bay, Annual Report 2018. Prepared by the San Francisco Bay Bird Observatory for the Don Edwards San Francisco Bay National Wildlife Refuge and the California Department of Fish and Wildlife.

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Construction, Operations, and Maintenance
Construction of the Project will occur in phases. Improvements within the Substation and Marsh Restoration and South of Bay Road--East Palo Alto reaches, which will be evaluated at a project level of detail in the EIR, will be constructed as part of the first phase, assumed to begin in 2025 (subject to the availability of funding). Supplemental CEQA for those aspects of the Project evaluated in the SAFER Bay EIR at a program level of detail will occur before construction of those elements. For purposes of analysis, construction of the entire Project is assumed to be completed by 2030. Following construction, monitoring of tidal marsh restoration, transition zone creation, and managed pond enhancement will occur in accordance with applicable permit requirements. Levees, floodwalls, and flood risk reduction structures will be visually inspected periodically and any damage will be repaired as needed.

Alternatives
Pursuant to CEQA Guidelines Section 15126.6, the EIR will consider alternatives to the proposed Project, including the No Project Alternative. 15 Preliminary options to be considered for evaluation in the EIR include other Project alignment and design options identified in the Feasibility Report.

Reviewers are encouraged to identify additional alternatives to be considered for potential inclusion in the EIR when commenting on this NOP.

Possible Environmental Impacts and Need for an EIR
Because of the potential for significant impacts to the environment, the SFCJPA has determined that an EIR is appropriate under CEQA. The purpose of an EIR is to inform decision-makers and the general public of the environmental effects of a proposed Project.

The EIR process is intended to provide information sufficient to evaluate a project and its potential to cause significant impacts on the environment; examine methods of reducing adverse environmental impacts; and identify and evaluate alternatives to the proposed project. The following environmental resources will be evaluated in the EIR:
• Aesthetics
• Agriculture and Forestry Resources
• Air Quality
• Biological Resources
• Cultural Resources and Tribal Cultural
Resources
• Energy
• Geology, Soils and Minerals
• Greenhouse Gas Emissions
• Hazards and Hazardous Materials
• Hydrology and Water Quality
• Land Use and Planning
• Mineral Resources
• Noise and Vibration
• Population and Housing
• Public Services
• Recreation
• Traffic and Transportation
• Utilities and Public Services
• Wildfire
15 Managed retreat is the movement and transition of people and ecosystems away from vulnerable coastal areas.

Georgetown Climate Center Managed Retreat Tool Kit web site:
https://www.georgetownclimate.org/adaptation/toolkits/managed-retreat-toolkit/introduction.html. Accessed April 1, 2022.

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The Draft EIR will analyze potentially significant impacts to the physical environment and propose measures to mitigate (avoid, reduce, or compensate for) impacts that are determined to be significant.

As several community tracts in the Project vicinity meet the criteria to be designated as disadvantaged communities, the SFCJPA will also be considering social and economic equity issues during preparation of the Draft EIR.

EIR Scoping Process
This NOP initiates the CEQA scoping process through which the SFCJPA will refine the range of issues and alternatives to be addressed in the Draft EIR. The public is invited to comment on this proposal to prepare the EIR and on the scope of issues to be included in it. The SFCJPA will host two Scoping Meetings:

May 11, 2022 at 6:00 p.m.
https://us02web.zoom.us/j/6102559602?pwd=UmJ2NExnU0dTMDdjMHJlNHVwR0dXdz09 Meeting ID: 610 255 9602
Passcode: SAFERNOP1
May 19, 2022 at 6:00 p.m.
https://us02web.zoom.us/j/6102559602?pwd=dkphTWRQM2xxU1RpZkNVNGxEdEVUUT09 Meeting ID: 610 255 9602
Passcode: SAFERNOP2
Virtual meetings are planned to reach the greatest number of stakeholders as possible. Spanish and Tongan translation will be available during the meeting. RSVPs are encouraged, but not required. In addition, the SFCJPA is happy to meet in person with individuals or groups or provide a tour or the project areas.

The May 11 and May 19 meetings are part of the EIR scoping process during which the general public, public agencies, and private sector entities can provide input on specific topics that they believe should be addressed in the environmental analysis.

Due to the size and complexity of the Project, the SFCJPA and project partners at Nuestra Casa and Climate Resilient Communities will implement a sustained stakeholder engagement process throughout planning, design and construction, consistent with the SAFER Bay Community Outreach Plan.

Requests for in-person meetings, or tour of the Project area or any questions are welcome.

Written comments on the NOP are due by June 6, 2022 and may be sent to:

Tess Byler, Senior Project Manager
San Francisquito Creek Joint Powers Authority
2100 Geng Road
Palo Alto CA 94303
[email protected]

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The SFCJPA Board adopted Resolution 21-12-16B for the Bay Adapt Platform guiding principles and priority actions to foster local and regional consensus on the actions necessary to protect people and the natural and built environment from rising sea levels. This transparent and collaborative process lays out regional strategies that focus on overcoming barriers and identifying factors for successful sea level rise adaptation outcomes. Use of this platform, and the ideas in it, will create a Project that is informed by local input with regional coordination using the best available science.

Public Participation in EIR Review
All interested persons and organizations wishing to be notified when the Draft EIR is available for review should respond to this notice and provide a current address. You may do so by emailing Tess Byler at [email protected], or telephone (650) 484-0859, or by completing an interest form at the SFCJPA website, Connect With Us — San Francisquito Creek Joint Powers Authority (sfcjpa.org).

The SFCJPA will add you to our list of interested parties and will provide notice when the Draft EIR is available. In anticipation of community and stakeholder interest in the Project, the SFCJPA is extending the normal review period for the Notice of Preparation to 45 days with comments to be submitted by Monday June 6, 2022.

Information about availability of the Draft EIR will also be posted on the SFCJPA’s website (http://sfcjpa.org).

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Permits and Approvals
The Projects may require discretionary permits and other approvals from the agencies listed below.

Agency or Organization Action Potentially Requiring Permit or Consultation Federal
U.S. Army Corps of Engineers Impacts to wetlands and waters of the U.S.

U.S. Fish and Wildlife Service Impacts to federal listed threatened and endangered species National Oceanic and Atmospheric
Administration: National Marine
Fisheries Service
Impacts to federal listed threatened and endangered species State
State Historic Preservation Office Construction in or near cultural resources State Lands Commission Need for an approval action to be confirmed California Department of Fish and
Wildlife
Effects on state-listed species
Regional Water Quality Control
Board
Impacts to waters of the state and potential for surface water quality impairment from pollutant discharge
Bay Conservation and Development
Commission
Impacts to lands within BCDC jurisdiction
Local
City of East Palo Alto Various
City of Menlo Park Various
City of Palo Alto Various
Related Planning and Projects
Dumbarton Bridge West Approach and Adjacent
Communities Resilience Study
The Dumbarton Bridge West Approach and Adjacent Communities Resilience Study16 is a separate, complimentary planning effort to the SAFER Bay Project. The Metropolitan Transportation Commission (MTC) completed this study of the Dumbarton Bridge/Highway 84 Corridor in 2020, which was funded by the California Department of Transportation (Caltrans), the MTC, and the Bay Area Toll Authority. The purpose of the study was to develop a strategy for sea level rise adaptation for the western approach of the bridge and adjacent communities. The SAFER Bay 16 AECOM, San Francisco Estuary Institute, and Skeo, 2020. Dumbarton Bridge West Approach and Adjacent Communities Resilience Study Technical Report. Prepared for the Metropolitan Transportation Commission.

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Project includes Caltrans as a partner and incorporates the most recent evaluation of potential actions in the Dumbarton corridor.

South Bay Salt Ponds Project
The South Bay Salt Pond Restoration Project (SBSP Project) is the largest tidal wetland restoration project on the West Coast. The SBSP Project encompasses approximately 15,000 acres of former industrial salt ponds located in the South San Francisco Bay, including the 1,600-acre Ravenswood Pond Complex that overlaps with some of the Project Area. This complex is part of the Don Edwards San Francisco Bay National Wildlife Refuge, owned and managed by the U.S. Fish and Wildlife Service (USFWS). Parts of the SAFER Bay Project site are within the Ravenswood Pond Complex. As indicated in the preceding text, in coordination with the SBSP Project, the SFCJPA proposes to restore habitat within Ponds R1, R2 and R5.

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Figure 1
Project Location and Components
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Bay Road
Moseley
Tract

ATHERTON

REDWOOD
CITY
NOTES: 1. Reaches to be evaluated at a project-level of detail are shown in solid lines; reaches to be evaluated at a program-level of detail are shown as dashed lines.

Greco Island
Don Edwards San Francisco Bay
National Wildlife Refuge
Rav

3. Water control structures will affect ecotone levee arrangement. Water control structures are/will be located between Ponds R5 and S5 and S5 and R3.

2. While program-level transition zones are indicated, additional areas that are not yet determined will be evaluated in the EIR. This figure does not reflect proposed improvements to western snowy plover habitat in Pond R3.

PALO ALTO
Connection to Redwood City
Shoreline Protection
Bayfront Expressway

4. SAFER Bay Project will not conflict with Dumbarton Rail corridor or efforts to place it back in service.

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to SAFER Bay NOP)

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to SAFER Bay NOP)

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to SAFER Bay NOP)

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to SAFER Bay NOP)

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to SAFER Bay NOP)

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to SAFER Bay NOP)

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to SAFER Bay NOP) SAFER Bay NOP 1-1 ESA / 211919
April 2022
APPENDIX NOP-1
Assessor Parcel Numbers Associated with the
Strategy to Advance Flood Protection,
Ecosystems and Recreation along San
Francisco Bay Project
This appendix lists the Assessor Parcel Numbers of properties that are wholly within, partially within, or within 100 feet of the footprint of the proposed Strategy to Advance Flood Protection, Ecosystems and Recreation along San Francisco (SAFER) Bay Project (Project) site excluding easements.

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to SAFER Bay NOP) Appendix NOP-1
Assessor Parcel Numbers Associated with the Strategy to Advance Flood Protection, Ecosystems and Recreation along San Francisco Bay Project SAFER Bay NOP 1-2 ESA / 211919
April 2022
TABLE NOP 1-1

PARCELS POTENTIALLY AFFECTED BY THE SAFER BAY PROJECT
054-310-060 055-231-050 055-400-460 055-400-997
055-010-120 054-310-060 055-411-060 055-411-999
055-010-260 055-170-310 055-411-070 055-412-998
055-122-320 055-400-490 055-411-080 055-451-010
055-130-010 055-400-520 055-400-610 055-471-999
055-130-300 055-400-590 055-400-999 093-590-030
055-130-360 055-400-570 055-400-620 096-220-180
055-130-390 055-400-580 093-590-050 096-220-200
055-130-400 055-411-150 093-590-060 096-220-270
055-130-420 055-412-999 093-600-010 063-050-050
055-170-310 055-400-421 055-400-530 063-121-070
055-231-040 055-400-450 055-400-630 063-121-410
063-121-110 063-121-390 063-121-400 063-590-060
063-121-510 063-122-030 063-580-090 063-271-480
063-590-040 063-240-420 063-271-070
063-272-080 063-580-100 055-400-640

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Attachment: SAFER Bay Project Notice of Preparation dated April 22, 2022 (2272 : Comment Letter to

CITY OF EAST PALO ALTO
Office of the City Manager
June 7, 2022
San Francisquito Creek Joint Powers Authority
Attn.: Ms. Margaret Bruce, Executive Director
2100 Geng Road, Suite 210
Palo Alto, CA 94303
Subject: Comments to the Notice of Preparation for the SAFER Bay Project Dear Ms. Bruce;
The City supports the SAFER Bay Project (Project).

This comment letter documents the City’s concerns about the information contained in the Notice of Preparation (NOP) dated April 22, 2022.

General Plan and Ravenswood Business District (RBD) Specific Plan The City is responsible for regulating land use within its boundaries.

Policy 1.7 encourages public involvement in every aspect of park and open space acquisition, design, construction and programming. The City requests that the SFCJPA work with East Palo Alto to design a levee system that will not limit the ability to implement the City’s goals and policies regarding the RBD. The City would appreciate greater coordination to ensure that both the SFCJPA and City’s goals are met, including presentations to the City Council regarding how the City’s concerns are being addressed, not less than quarterly. The coordination should also include greater public involvement.

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Attachment: Draft Comment Letter to SAFER Bay Project NOP (2272 : Comment Letter to SAFER Bay NOP) As part of the planning application process, the City will require, as a condition of approval, certain landowners to dedicate construction, maintenance, and public access easements for the levee and Bay Trail. The location of the easements will consider recreational uses and shoreline access improvements in the 100 feet shoreline band proposed by the landowners. The City is concerned that the proposed levee alignment will be inconsistent with the landowner-provided easements.

The City is concerned that the proposed improvements will not fit within the narrow corridor.

A levee alignment in the North of Bay Road reach shows the Bay Trail relocated onto the 2020 Bay Road property, EPA Waterfront property, and Infinity Auto Salvage property. The City is concerned that high-speed bicycles on the relocated Bay Trail may be inconsistent with the pedestrian areas proposed as part of the recreational uses and shoreline access improvements on the properties.

Unfortunately, East Palo Alto’s park system is scarred with the historic impacts of inequitable investment and racialized land-use decisions that have concentrated environmental injustice and lack of public investment in the City compared to neighboring cities. East Palo Alto is “park poor.”
For today’s population of close to 30,000 people, the City currently only has approximately 24 acres of accessible public park land. To achieve the minimal goal of

3.0 park acres per 1000 people, the Parks Master Plan has the challenge of identifying an additional 66 park acres. The General Plan’s population projection for 2035 adds more than 7,000 new residents, increasing the total park area deficit in the future to 112 acres. Overall, the Bay Trail and the shoreline park opportunities identified as part of future developments are critical to ensuring the City provides the park and open spaces needed to ensure residents have options for recreation and improved physical and mental health and wellness.

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Attachment: Draft Comment Letter to SAFER Bay Project NOP (2272 : Comment Letter to SAFER Bay NOP) Trail and to maximize the number of access points between the community and the new Bay Trail.

In addition, the open spaces and shoreline band areas identified in the RBD Specific Plan and Martin Luther King, Jr. Park Master Plan are critical future opportunities to meet the community’s park needs today and in the future. The planned improvements at Martin Luther King, Jr. Park include expansion to the west towards the Bay. The City is concerned that the Project will not consider the future park improvements.

Climate Action Plan
The levee is critical to support the City’s planned resiliency and adaptation to sea level rise. The City is concerned about how the SFCJPA will implement the levee to ensure critical infrastructure is fully protected from sea level rise and mitigates anticipated impacts into the future. The levee design shall adhere to the ’Citys Climate Action Plan, <https://www.cityofepa.org/econdev/page/climate-action-plan> concurrently under public review. Design standards shall ensure guidance provided by the California Ocean Protection Council (OPC) and San Mateo County’s Sea-Level Rise Vulnerability Assessment are followed. <http://seachangesmc.org/vulnerability-assessment/> According to San Mateo County’s Assessment, the City of East Palo Alto has 335 acres of land at risk in the baseline scenario, 714 acres in the mid-level scenario, and 992 acres in the high-end scenario. Nearly 60 percent of East Palo Alto’s population and almost all of the City’s wetlands are vulnerable to sea level rise under the mid-level scenario. Critical infrastructure and community-serving facilities included energy and water infrastructure, local roadways, schools, emergency shelters, and parks would also be impacted by sea level rise. Design considerations of the planned levee shall result in infrastructure which equates to resiliency across all sea level rise risks including increased wave action, rising groundwater tables and saltwater intrusion, increased erosion (i.e., landward shoreline retreat) and changes in sediment supply in lands pertaining to the proposed project.

Vehicle Access to Levee and Bay Trail
Vehicle access points to the top of the levee should be provided for maintenance vehicles, police vehicles, fire vehicles/equipment, and ambulances. The City is concerned that the levee may not be sufficiently wide to allow vehicles to safely drive on the levee due to the steep embankment. The City is concerned that the levee/Bay Trail

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Attachment: Draft Comment Letter to SAFER Bay Project NOP (2272 : Comment Letter to SAFER Bay NOP) may not be sufficiently wide to allow for vehicles, pedestrians and cyclists to pass moving and/or parked vehicles. The City also is concerned that the levee may have an inadequate number of access points for vehicles, that the levee pavement section may not be designed for vehicle traffic, and that the geometric design of the Bay Trail may not accommodate vehicles, especially near the PG&E poles and towers and the existing Bay Trail alignment near Runnymede Street.

Pedestrian, Cyclists, and Persons with Disabilities Access to Bay Trail Along the Bay shoreline, BCDC’s land use authority relates primarily to public access.

The Commission bases the approval of a project primarily on whether the development provides maximum feasible public access, consistent with the project. The City shares the BCDC’s goals regarding providing maximum feasible access to the shoreline. The City’s priorities regarding public access are identified in the 2007 East Palo Alto Bay Access Master Plan. The City is concerned that the maximum feasible public access to the Bay shoreline is provided.

Existing access points to the Bay Trail are located at Daphne Way, O’Connor Street, Cypress Street, Garden Street, Runnymede Street, Weeks Street, Bay Road, and Martin Luther King, Jr. Park, etc. The Project should maintain existing access points to the Bay Train and these should be reconstructed by the Project.

The landowners in the RBD development plan to significantly increase the shoreline access on their properties.

New and feasible access points to the Bay Trail should be considered at Beech Street, Stevens Avenue, Fordham Street, Rutgers Street, and Tulane Avenue which terminate near the existing or relocated Bay Trail. The City is concerned that new access points may not be considered near the existing or relocated Bay Trail.

The City is concerned that ADA compliant access to the Bay Trail will not be provided.

Contaminated Soil and Groundwater
Contaminated soil and groundwater are well-known and documented issues in areas from the Weeks Street terminus, north along East Palo Alto’s shoreline to Fordham Street. Additionally, imported topsoil in northern properties of the City from Demeter Street to Fordham Street have been documented to include PCBs and other constituents of concern. The City recommends that the following Permitting agencies shall be included in design review for these areas to ensure appropriate remediation:

California Department of Toxic Substances Control, the Environmental Protection Agency, and the Bay Area Air Quality Control Board.

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Attachment: Draft Comment Letter to SAFER Bay Project NOP (2272 : Comment Letter to SAFER Bay NOP) the City’s liability associated with the contaminated soil and/or groundwater on the properties.

Tidal Marsh Overlooks on Bay Trail
An overlook can provide a place for cyclists and pedestrians to stop and clear the Bay Trail, view the marshes, sit at a bench and rest, and read educational and information signage. The City is concerned that the Project will not provide overlooks for people to clear the trail, rest, and enjoy various amenities.

City Storm Drain Facilities
Storm drain facilities, including drainage pipes, outfalls, ditches, swales, retention basins, pump stations, and overland sheet flows convey storm water from the City to Bay. The City is concerned that the Project may obstruct storm water or reduce the capacity of the facilities.

Minimizing Construction Impacts
Impacts to residents, business, and infrastructure during the construction of the Project.is of concern.

Damage to city streets and impacts to traffic due to trucking and hauling, especially hauling of embankment material is a major concern. Project shall adhere to the requirements of Municipal Code Section 8.28 including allowable haul routes determined by the Public Works Director.

Staging or lining up trucks before loading or offloading materials should take place onsite or on private property as a contract requirement. No staging of trucks will be permitted on City streets.

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Attachment: Draft Comment Letter to SAFER Bay Project NOP (2272 : Comment Letter to SAFER Bay NOP) Minimizing the construction noise disturbing residents is a priorirty. Hours of construction activity shall be limited to hours described in Municipal Code Section

15.04.125 unless further limited by the Public Works Director. For example, installing sheet piles may be limited to hours from 9 am to 4 pm. Any deviations from the allowable hours of construction activity shall be approved by the Public Works Director.

Settlement of nearby structures due to construction activities needs to be avoided. The Project should implement of settlement monitoring program to address settlement concerns, complaints, and claims.

Well planned Bay Trail detours will improve cyclists’ experience during construction.

The City is concerned that the design of detours may not be included in the construction contracts. The detour design should include creating Class II bikeways where Class II bikeways are not feasible.

Public Notices including door hangers, social meetings postings, or websites are essential to informing the public about changes to their daily life. The Project should develop a comprehensive public outreach plan for construction activities.

The City is concerned about the Contractor importing contaminated soil for construction.

An independent lab should be hired by the SFCJPA to test material, as opposed to the Contractor sampling and testing the material.

City Permits
The Project will require City Permits, which may include the following:

1. Encroachment Permit(s). (Municipal Code Sections 13.06.200 and

13.06.280)

2. Hauling /Oversize Load Transportation Permit(s) (Municipal Code Sections

8.28 and 10.36)

3. Grading Permit(s) (Municipal Code Section 15.48)

4. Tree Removal Permit(s) (Municipal Code Section 18.28) City Streets

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Attachment: Draft Comment Letter to SAFER Bay Project NOP (2272 : Comment Letter to SAFER Bay NOP) The proposed levee is near the cul-de-sacs on Weeks Street, Runnymede Street, Garden Street, Cypress Street, Beech Street, and O’Connor Street. The cul-se-sacs are essential for allowing vehicles, especially fire vehicles/equipment, to turn around.

The City is concerned that the levee may adversely impact existing cul-de-sacs.

Any modifications to the City streets shall comply with the City’s design and construction standards, as well as the City’s adopted Green Infrastructure Plan. Green Infrastructure | City of East Palo Alto (cityofepa.org)
<https://www.cityofepa.org/publicworks/page/green-infrastructure> Storm Water Pump Station Improvements
The City will improve the Storm Water Pump Station (Pump Station) near O’Connor Street. The improvements will include (a) installing a new above ground diesel fuel storage tank on the north side of pump station at the elevation of the existing Bay Trail; and (b) removing the existing underground fuel storage tanks on the east side of the Pump Station. The City is concerned that the Project will not consider the future improvements at the Pump Station.

Bay Trail and Levee Maintenance
The portions of the existing Bay Trail within the City are maintained by the City, City of Palo Alto, and Mid-Peninsula Regional Open Space District. The City is concerned about any increase in human resources and/or financial resources that would be necessary for the post-construction maintenance of the Bay Trail and Tidal Marsh Transition Zones by the City.

The proposed 3:1 levee embankment side-slopes will be difficult for workers to safely maintain due to the steepness. Embankment side-slopes not steeper than 4:1 are industry standard (See Caltrans Highway Design Manual). If 3:1 side-slopes are required by the Project, the City is concerned that low to no maintenance plantings will not be installed on the side-slopes to minimize maintenance of the embankment slopes.

The City is concerned that adequate space on the landward side of the levee will not be provided for the additional embankment width required to increase the top of levee elevation, if required.

Levee Crossings at Bay Road and Railroad Crossings

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Attachment: Draft Comment Letter to SAFER Bay Project NOP (2272 : Comment Letter to SAFER Bay NOP) The levee will pass over Bay Road and the Union Pacific Railroad tracks near University Avenue. The City is concerned about how the SFCJPA will implement the levee at Bay Road and the Railroad Crossing crossings including effectiveness and impact to the roads and railroads when deployed and not deployed.

The City looks forward to working with the SFCJPA to implement the Project.

Sincerely,
Patrick Heisinger
Interim City Manager

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Attachment: Draft Comment Letter to SAFER Bay Project NOP (2272 : Comment Letter to SAFER Bay NOP)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Jeff Liu, Interim Chief of Police
SUBJECT: Resolution Authorizing an Application to the U.S. Department of Justice for Participation in the FY 2022 Community Oriented Policing Services Hiring Program
Recommendation
Adopt a resolution authorizing the East Palo Alto Police Department to submit an application applying for funding from the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), for participation in the COPS Hiring FY 2022 program.

This recommendation is primarily aligned with:
• Priority #1: Enhance Public Safety and Emergency Preparedness • Priority #2: Enhance Economic Vitality
• Priority #3: Increase Organizational Effectiveness and Efficiency • Priority #6: Create a Healthy and Safe Community
Background
The United States Department of Justice Office of Community Oriented Policing Services is accepting applications for the 2022 COPS Hiring Program, designed to advance public safety through community policing by addressing the full-time sworn officer needs of state, local, and tribal law enforcement agencies nationwide.

Cities awarded the COPS grant have five (5) years to spend the grant money, giving us ample time to strengthen our current staffing level and hire the additional personnel subsidized by the grant.

Grant proposals are due by June 16, 2022.

Analysis
The COPS grant is designed to pay for 75% of the salary and benefits ($125,000 annual maximum per Officer) for new hires over a 3-year period, with the expectation that the city

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retains the positions for at least one year after completion of the grant.

If awarded, this grant would allow East Palo Alto to increase the number of sworn personnel from 36 to 40 and to create a Community Response Team dedicated to creatively addressing community concerns.

Fiscal Impact
If awarded, the City would be required to cover 25% of the total costs. Staff would return to the City Council in the future for final consideration of the City’s commitment, if awarded.

Public Notice
The public was provided notice of this agenda item by positing the City Council agenda on the City’s official bulletin outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library at 2415 University Avenue.

Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b) (4) as it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

Attachments

1. Resolution

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Resolution No. XX-2021 1 of 2
RESOLUTION NO.______

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
AUTHORIZING AN APPLICATION TO THE U.S. DEPARTMENT OF JUSTICE

OFFICE OF COMMUNITY ORIENTED POLICING SERVICES FOR
PARTICIPATION IN THE FY 2022 HIRING PROGRAM
WHEREAS, the United States Department of Justice, Office of Community Oriented Policing Services (COPS) has announced that it is accepting applications for funding designed to address the full-time sworn officer needs in states and local law enforcement agencies nationwide; and
WHEREAS, this funding is to be used to hire new law enforcement officers and create a Community Response Team, while increasing law enforcement's community policing capacity; and
WHEREAS, the East Palo Alto Police Department desires to participate in this program and request funds to assist with the cost of paying the salaries of 4 newly hired police officers; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY that it authorizes the City Manager to apply for funding from the United States Department of Justice – Office of Community Oriented Policing Services (COPS), for participation in the COPS Hiring FY 2022 Program.

PASSED AND ADOPTED this 7th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

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Attachment: Resolution (2295 : Resolution Authorizing an Application to the U.S. Department of Justice) Resolution No. XX
-20212 of 2

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Attachment: Resolution (2295 : Resolution Authorizing an Application to the U.S. Department of Justice)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Greg Henry, Senior Management Analyst
Jimmie Tulabing, Senior IT Analyst
SUBJECT: Ratifying Purchases and Authorizing New Purchases from Comcast Recommendation
Adopt a resolution:

1. Ratifying the previous purchase of Comcast services through June 1, 2022, in an amount of $24,289.09; and

2. Authorizing the purchase of Comcast services from July 1, 2022, through December 31, 2022 in the amount of $4,840.61 monthly, for a total purchase amount of $53,332.75; and

3. Waiving the formal bid procedures under section 2.84.070(D) of the Municipal Code.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 3: Increase Organizational Effectiveness and Efficiency Background
The Information Technology Division (IT) makes IT purchases on behalf of other departments and divisions of the City. In this role, the IT Division has made individual purchases with Comcast, following the informal bid process as was appropriate if considered on the individual basis. However, in aggregate, these purchases now exceed the maximum allowed by City purchasing standards.

Pursuant to the Comcast Franchise agreement, which expired November 5, 2017, Comcast no longer provides the free use of the I-net fiber for the intra-network connectivity between City offices mentioned.

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Analysis
The Information Technology Division has relied on Comcast for several purchases this fiscal year and previously. Comcast provides the bandwidth and reliability which the City requires.

The City participates in the California Network and Telecommunications (CALNET) Program.

CALNET is focused on providing services that meet the State of California’s complex and critical telecommunications and network business needs. The CALNET Program accomplishes this through oversight, statewide policy, and a suite of statewide, competitively bid telecommunications contracts used by both state and local agencies.

Fiscal Impact
There is sufficient budget to fund these expenses. While the City did not bid these services directly, there were purchased through the State of California CalNet 3 program which were competitively bid.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Attachments

1. Authorization of payment for Comcast

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Resolution No. XX-2022 1 of 2
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

RATIFYING PREVIOUS PURCHASES FROM COMCAST IN THE AMOUNT OF $24,289.09, AUTHORIZING ADDITIONAL PURCHASES OF $29,043.66, FOR A TOTAL AMOUNT NOT TO EXCEED $53,332.75, AND WAIVING THE FORMAL BID

PROCEDURES
WHEREAS, the City requires significant internet bandwidth with limited downtime to operate efficiently; and
WHEREAS, the City participates in the California Network and Telecommunications (CALNET) Program which are competitively bid telecommunications contracts; and WHEREAS, Comcast has provided reliable service at the bandwidth the City requires.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO hereby:

1. Ratifies the previous purchase of Comcast services through June 1, 2022, in an amount of $24,289.09; and

2. Authorizes the purchase of Comcast services from July 1, 2022, through December 31, 2022 in the amount of $4,840.61 monthly, for a total purchase amount of $53,332.75; and

3. Waives the formal bid procedures under section 2.84.070(D) of the Municipal Code.

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Attachment: Authorization of payment for Comcast (2276 : Ratifying Purchases and Authorizing New Purchases from Comcast) Resolution No. XX-2022 2 of 2
PASSED AND ADOPTED this 7th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

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Attachment: Authorization of payment for Comcast (2276 : Ratifying Purchases and Authorizing New Purchases from Comcast)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Valerie J. Armento, Interim City Attorney
BY: Patricia Del Castillo, Legal Assistant
SUBJECT: Revised Ballot Measure Language for Gross Receipts Tax Measure Recommendation
Adopt a resolution revising the ballot measure language for the gross receipts tax measure.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 5: Improve Communication and Enhance Community Engagement Background
After extensive review and discussion, City Council decided on May 3, 2022 to place a measure on the ballot increasing the gross receipts tax on residential rentals.

After adopting a resolution calling for putting the measure before the voters at the November 2022 election, Councilmember Romero recommended “flipping” the way the ballot question was stated, so that the purposes of the tax are listed first in the question.

Analysis
The original question to be placed before the voter’s was presented as follows:
“Shall the current City of East Palo Alto business tax of 1.5% of gross receipts on landlords with five or more residential rental units, which cannot be passed on to tenants, be set at 2.5% of gross receipts for all residential rental units, until terminated by voters or reduced by Council, raising approximately $1,480,000 annually for general government use, such as programs for affordable housing, providing tenant rental support and protecting local residents from displacement and homelessness, be adopted?”
The proposed revised question would be stated as follows:

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“To fund general government uses, such as programs for affordable housing, providing tenant rental support, and protecting local residents from displacement and homelessness, shall the current City of East Palo Alto business tax of 1.5% of gross receipts on landlords with five or more residential rental units, which cannot be passed to tenants, be set at 2.5% of gross receipts for all residential rental units, until terminated by voters or reduced by Council, raising approximately $1,480,000 annually, be adopted?”
If the City Council prefers the revised form of the ballot question, then a new resolution calling for placing the matter before the voters needs to be adopted. If the City Council prefers the original question, no action need be taken.

Fiscal Impact
None
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.
.

Attachments

1. Resolution

2. Exhibit A

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO

CALLING AND ORDERING THE SUBMISSION TO THE QUALIFIED

ELECTORS OF THE CITY OF EAST PALO ALTO A MEASURE RELATING TO

A PROPOSED ORDINANCE INCREASING THE BUSINESS TAX FROM ONE AND A HALF PERCENT (1.5 %) OF GROSS RECEIPTS ON OWNERS OF RESIDENTIAL RENTAL UNITS TO TWO AND A HALF PERCENT (2.5%) AND

PROHIBITING THE PASS-THROUGH OF THE TAX TO TENANTS
WHEREAS, business taxes for the rental of residential property may be increased by a majority vote of the people, and
WHEREAS, residential rents in East Palo Alto have increased dramatically primarily due to high demand due to East Palo Alto’s location in the center of Silicon Valley, and large number of jobs created nearby, and
WHEREAS, in 1984 the citizens of East Palo Alto passed a strong rent control system which allowed a fair return to owner investment while not permitting large increases to the residents but changes in state law in 1999 weakened East Palo Alto’s system by imposing “vacancy decontrol” on rent stabilized apartments, allowing landlords to raise rents without limitation whenever a new renter moves in, and WHEREAS, as a result of “vacancy decontrol” and unprecedented market forces, real (inflation-adjusted) rents in East Palo Alto have increased and renters are paying more in rent, over and above the inflation adjustment for what is necessary for a fair return, and WHEREAS, dramatically increased rents transfer income from East Palo Alto residents to landlords of large rental properties, the majority of whom live outside of East Palo Alto, creating hardships for low and moderate-income tenants, draining the economic health of the community and increasing the need for public services of all kinds, including affordable housing and homelessness prevention, and
WHEREAS, by increasing the business tax on high residential rents, and applying the increase to all residential rental units, this measure will recapture a part of the rental income stream for the benefit of the entire community, and WHEREAS, a Consolidated General Municipal Election on Tuesday, November 8, 2022 has been called by Resolution Nos. 54-2022 and 55-2022, adopted on May 3, 2022,

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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO THAT:

SECTION 1. The City Council pursuant to its right and authority, does order to be submitted to the voters at a General Municipal election the following question:
“To fund general government uses, such as programs for affordable housing, providing tenant rental support, and protecting local residents from displacement and homelessness, shall the current City of East Palo Alto business tax of 1.5% of gross receipts on landlords with five or more residential rental units, which cannot be passed to tenants, be set at 2.5% of gross receipts for all residential rental units, until terminated by voters or reduced by Council, raising approximately $1,480,000 annually, be adopted?”
YES
NO
SECTION 2. The full text of the proposed measure submitted to the voters is attached as Exhibit A to this Resolution, which is incorporated herein by this reference. To become effective, two-thirds of the City Council must vote to place the measure on the ballot and a majority of the voters voting on the measure must vote in the affirmative. The method of collection of the tax would be as specified in relevant sections of Chapter 5.04 of the Municipal Code governing the collection of business licenses taxes.

SECTION 3. The City Council hereby requests the San Mateo County Registrar of Voters to provide all services necessary to conduct the Election and to conduct and canvass the results of the Election. The City will reimburse San Mateo County for the actual cost incurred in conducting the election when the work is completed and upon receipt of a bill stating the amount due as determined by the elections official.

SECTION 4. In all particulars not recited in this Resolution, the election shall be held and conduced as provided by law for holding municipal elections.

SECTION 5. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, for and a manner as required by law. The hours during which the polling places for the Election shall be open shall be the hours established for the Consolidated Municipal Election.

SECTION 6. The City Clerk is hereby directed to do all things required by law to effectuate the Consolidated General Municipal Election, and to present the measure submitted herein to the electorate, including, but not limited to, required publications, postings, noticing and filings.

3.10.a
Packet Pg. 102 Attachment: Resolution (2291 : Ballot Measure Question Modification) SECTION 7. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of this resolution to the City Attorney.

The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure o the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk in a timely manner.

SECTION 8. Arguments for and against, not to exceed 300 words in length may be filed consistent with Elections Code Section 9282 requirements. The City Council declines, pursuant to the provisions of Section 9285 of the Elections Code to permit rebuttal arguments.

SECTION 9. The City Clerk is hereby directed to file a certified copy of this Resolution with the San Mateo County Board of Supervisors and the San Mateo County Registrar of Voters.

SECTION 10. Resolution No. 57-2022 is hereby rescinded.

ADOPTED this 7th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

3.10.a
Packet Pg. 103 Attachment: Resolution (2291 : Ballot Measure Question Modification) ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO INCREASING THE BUSINESS TAX TO TWO AND A HALF PERCENT (2.5 %) OF

GROSS RECEIPTS ON OWNERS OF RESIDENTIAL RENTAL UNITS AND

PROHIBITING THE PASS-THROUGH OF THE TAX TO TENANTS
THE PEOPLE OF THE CITY OF EAST PALO ALTO ORDAIN AS FOLLOWS:

Section 1. Findings and declarations.

The People of East Palo Alto find and declare as follows:
a. Business taxes on the rental of residential property may be increased by a vote of the people.
b. Any increase in this tax cannot be passed on to tenants protected by the City’s rent ordinances and regulations and likely will not be passed on to other renters since landlords already typically charge rents to the maximum the market will bear. c. Residential rents in East Palo Alto have increased primarily due to high demand due to East Palo Alto’s location in the center of Silicon Valley, and large number of jobs created nearby.
d. In 1984 the citizens of East Palo Alto passed a strong rent control system that allowed a fair return to landlord investment while not permitting large increases to the residents. In 1999 the State legislature weakened East Palo Alto’s system by imposing “vacancy decontrol” on rent stabilized apartments, which allows landlords to raise rents without limitation whenever a new renter moves in. Over 85% of East Palo Alto’s older rental apartments have now had vacancy increases. Newer buildings are entirely exempt from rent stabilization.
e. As a result of “vacancy decontrol” and unprecedented market forces, real (inflationadjusted) rents in East Palo Alto have increased and renters are paying more in rent, over and above the inflation adjustment for what is necessary for a fair return. f. Increased rents transfer income from East Palo Alto residents to landlords of large rental properties, the majority of whom live outside of East Palo Alto. This transfer creates hardships for low and moderate-income tenants, drains the economic health of the community (less money for families to spend on local shopping and services) and increases the need for public services of all kinds, including affordable housing and homelessness prevention.

3.10.b
Packet Pg. 104 Attachment: Exhibit A (2291 : Ballot Measure Question Modification) g. By expanding the coverage of the tax imposed in 2016 and increasing the amount of the business tax on residential rents, this measure will capture a part of the rental income stream for the benefit of the entire community.

Section 2. Section 5.08120 of the East Palo Alto Municipal Code is amended to read as follows:

5.08.120 Rental of real property
Every person or entity engaged in the business of renting or letting a building, structure or other property, or a portion of such building, structure or property, within the city for any purpose, including residential rentals except for those paying the tax imposed under Section 5.08.125, shall pay an annual license fee as provided in the fee schedule established by the city.

Section 3. Section 5.08.125 of the East Palo Alto Municipal Code is amended to read as follows:

5.08.125 Rental of residential real property.

A. This section shall govern the taxation of gross receipts from the rental of residential units in the city of East Palo Alto.

B. Every person or entity engaged, including through an interest in another entity, in the business of renting or leasing dwelling units in the City of East Palo Alto shall pay an annual tax of two and one-half percent (2.5%) of gross receipts.

C. Gross receipts from the following categories of dwelling units shall not be subject to this section, but shall be subject to section 5.08.120:

1. Dwelling units owned by a nonprofit corporation renting affordable housing;

2. Dwelling units whose rents are controlled under state or federal law, deed restrictions, or agreements with public agencies, at rental rates that are affordable to households earning no more than eighty percent (80%) of AMI and whose tenants must be income-qualified;

3. Units occupied by tenants receiving monthly rental assistance (such as Section 8 vouchers or Shelter + Care) from the County of San Mateo Department of Housing;

4. Any dwelling unit during the first three (3) years after the issuance of a certificate of occupancy;

3.10.b
Packet Pg. 105 Attachment: Exhibit A (2291 : Ballot Measure Question Modification)

5. An individual room without kitchen facilities rented in a residential dwelling unit; and

6. An Accessory Dwelling Unit (ADU) or Junior Accessory Dwelling Unit (JADU) as defined in Section 18.96.020.

D. Any person or entity otherwise subject to the tax imposed under this section may seek a one year hardship exemption due to exceptional circumstances. The rent stabilization administrator may approve such applications for good cause, such good cause being determined in accordance with standards set out in the City Rent Stabilization and Just Cause for Eviction Ordinance, Chapter 14.04 of the East Palo Alto Municipal Code.

Such approvals shall be in writing and specifically state the factors that constitute good cause. Any hardship exemption shall be effective for one tax year only, after which it will expire. Taxpayers who seek hardship exemptions must reapply every year.

E. The city council may reduce the tax rate set forth in this Section and may terminate any such reductions without further voter approval.

F. The tax imposed by this chapter shall not be passed on to existing tenants in the form of rent increases or in any manner, including reduction in services or added charges for services, unless such pass-through is constitutionally required. Any violation of this provision shall be a defense for a tenant in an unlawful detainer action. A violation of this provision shall be enforceable by an affected tenant.

G. The city council may use the funds generated for any purposes deemed necessary and appropriate for the benefit of the residents of East Palo Alto. Periodically, council shall review housing policy, housing programs, and related issues to determine how and to what extent the city should establish and fund such programs, if any, to increase the supply of affordable housing and protect residents from displacement and homelessness, including the provision of rental assistance, in light of the city's budget cycle and other relevant funding cycles.

Section 5. Conflicting Measures.

This measure is intended to be comprehensive and fully address and occupy the field of taxation of receipts from the rental of dwelling units, and real property and buildings in general. It is the intent of the people of the City of East Palo Alto that in the event this measure and any other measure relating to taxation of receipts from the rental of dwelling units, or real property and buildings in general, appear on the same ballot, the provisions of the other measure shall be deemed in their entirety to be in conflict with this measure. If this measure receives a greater number of affirmative votes than any conflicting measure or measures, this measure shall prevail in its entirety, and all provisions of such other measure or measures shall be null and void in their entirety. If this measure is approved by the voters but does not receive a greater number of affirmative votes than any other measure(s)

3.10.b
Packet Pg. 106 Attachment: Exhibit A (2291 : Ballot Measure Question Modification) appearing on the same ballot relating to taxation of receipts from the rental of dwelling units, or real property and buildings in general, then this measure shall take effect to the extent not in conflict with any other measure(s).

Section 6. Severability.

If any word, phrase, sentence, part, section, subsection, or other portion of this Ordinance, or any application thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this chapter, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect. The People of the City of East Palo Alto hereby declare that they would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or unconstitutional.

3.10.b
Packet Pg. 107 Attachment: Exhibit A (2291 : Ballot Measure Question Modification)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, Executive Assistant
SUBJECT: Proclamation of the City of East Palo Alto Celebrating Juneteenth Recommendation
Present the proclamation.

Attachments

1. Juneteenth Proclamation

3.11 Packet Pg. 108

3.11.a
Packet Pg. 109 Attachment: Juneteenth Proclamation (2283 : Junetheenth Proclamation)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, Executive Assistant
SUBJECT: Proclamation of the City of East Palo Alto Celebrating LGBTQ+ Pride Month Recommendation
Present the proclamation.

Attachments

1. Proclamation

3.12 Packet Pg. 110

3.12.a
Packet Pg. 111 Attachment: Proclamation (2284 : LGBTQ+ Pride Month Proclamation)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Jeff Liu, Interim Chief of Police
SUBJECT: Fireworks and Overall Public Safety Report
Recommendation
Interim Chief of Police, Jeff Liu will provide a presentation.

6.1 Packet Pg. 112

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, Executive Assistant
SUBJECT: Presentation from Vanessa Russell on Sex Trafficking Recommendation
Receive the presentation.

7.1 Packet Pg. 113

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: Adoption of Fiscal Year 2022-23 Successor Agency Budget Recommendation
Adopt a Resolution adopting the Fiscal Year 2022-23 Successor Agency Budget.

Background
Redevelopment agencies in California were dissolved effective February 1, 2012, under ABx1 26 enacted June 2011 and held by the California Supreme Court to be constitutional (“Dissolution Statutes”). The Dissolution Statutes were further amended by AB 1484 enacted June 2012, AB 471 enacted February 2014, and SB107 enacted September 2015. Under the Dissolution Statutes, on January 10, 2012, the City Council elected to serve as the Successor Agency to the Former Redevelopment Agency of the City of East Palo Alto (the “Successor Agency”).

City staff performs key day-to-day functions for the Successor Agency, primarily assuring that the existing obligations of the former Redevelopment Agency are properly paid, and that all properties and other assets are disposed of in an appropriate manner. Under Health and Safety Code §34179 (j), effective July 1, 2018, a Countywide Oversight Board staffed by the County Auditor-Controller was established to provide direction and oversight to successor agencies regarding the wind-down of the former Redevelopment Agencies. Each related period, the Finance Department prepares a Recognized Obligation Payment Schedule (“ROPS”) which provides the basis for receiving Redevelopment Property Tax Trust Fund (“RPTTF”) monies utilized to pay the authorized obligations of the former Agency. On January 10, 2022 as required by the Dissolution Statues, the Countywide Oversight Board approved the obligation payments for the Fiscal Year (FY) 2022-23 ROPS period.

The City maintains all accounting, financial, and debt activity for the Successor Agency in a fund referred as the “Successor Agency Trust.” As such, staff is seeking Successor Board approval of the FY 2022-23 Successor Agency Budget.

9.1 Packet Pg. 114
Analysis
The following analysis provides an overview of the FY 2022-23 Budget for the Successor Agency Trust Fund:

Revenues Expenditures In Out
705 Successor Operating $ 3,959,000 $ (114,110) $ - $ - $ - $ 3,844,890 706 Successor Debt Service $ 1,552,430 $ (1,550,310) $ - $ - $ - $ 2,120 Successor Agency $ 5,511,430 $ (1,664,420) $ - $ - $ - $ 3,847,010 FY 2022-23 Successor Agency Budget Summary
Operating Transfers Net Change
Fund Balance
Fund Description
Operating Capital
Improvement
Plan
Budgeted revenues and expenditures total $5.5M and $1.7M, respectively. The net change in fund balance totals $3.8M and consists of the following activity:
· Total budgeted revenues of $5.5M equal the total estimated RPTTF distribution requests by staff and approved by the Oversight Board and the Department of Finance (for ROPS 22-23) or estimated by staff (ROPS 23-24).

The Successor Agency only receives funds required to pay authorized and approved obligations.
· Total budgeted expenditures of $1.7M consist of 2015 Refunding Bonds debt service ($1.55M); Sponsoring Entity Loan Interest, Bay Road Loan Advances, and Administrative Overhead $ ($0.11M).
· Surplus RPTTF funds of $2.5M are utilized to repay estimated Sponsoring Entity loans in FY 2022-23 ($2.2M) and provide reserve for FY 2023-24 ROPS estimated loan repayment.

Fiscal Impact
The adoption of the FY 2022-23 Budget primarily serves as local appropriation authority for obligation payments from the Successor Trust.

Public Notice
The public was provided notice of City budget hearings by publishing a notice of the hearing dates in “Mercury News” and, also, posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website.

9.1 Packet Pg. 115
to any specific project which may result in a potentially significant impact on the environment.

Attachments

1. Resolution - SA budget 22-23

9.1 Packet Pg. 116
RESOLUTION NO. XX – 2022

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EAST PALO ALTO

ACTING AS THE GOVERNING BOARD OF THE SUCCESSOR AGENCY TO THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF EAST PALO ALTO
APPROVING THE FISCAL YEAR 2022-23 REVENUE AND EXPENDITURE BUDGET

FOR THE SUCCESSOR AGENCY
WHEREAS, pursuant to section 34172(a) of the California Health and Safety Code, the Redevelopment Agency of the City of East Palo Alto (the “Former Agency”) has been dissolved and no longer exists as a public body, corporate and politic, and pursuant to section 34173, and the Successor Agency to the Former Redevelopment Agency of the City of East Palo Alto (the “Successor Agency”) has become the successor entity to the Former Agency; and WHEREAS, the County Oversight Board to the Successor Agency adopted a Resolution on January 10,2022, approving the 2022-23 Annual Recognized Obligations Schedule (ROPS); and on March 11, 2022, the Department of Finance issued a determination letter authorizing payments on the 2022-23 Annual ROPS; and
WHEREAS, the Successor Agency accounts for, and transacts, the revenues and disbursements authorized by the Oversight Board and the Department of Finance, including authorizing budget appropriations for the same.

NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF EAST PALO ALTO HEREBY:

Adopts the Fiscal Year 2022-23 Successor Agency Budget, as follows:

AYES:

NOES:

ABSENT:

ABSTAIN:

9.1.a
Packet Pg. 117 Attachment: Resolution - SA budget 22-23 (2287 : Adoption of Fiscal Year 2022-23 Successor Agency Budget) Ruben Abrica
Successor Agency Chair
ATTEST:

James Colin
Interim Successor Agency
Secretary
APPROVED AS TO FORM:

Valerie J. Armento
Interim Successor Agency
Counsel

9.1.a
Packet Pg. 118 Attachment: Resolution - SA budget 22-23 (2287 : Adoption of Fiscal Year 2022-23 Successor Agency Budget)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Tomohito Oku, Finance Director
Bo-Kyoung Kim, Financial Services Manager
SUBJECT: Adoption of Fiscal Year 2022-23 Budget
Recommendation
Adopt a Resolution adopting the Fiscal Year 2022-23 Budget.

Adopt Two-year Capital Improvement Program Update for FY 2022-23 and FY 2023-24
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 2: Enhance Economic Vitality
Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 5: Improve Communication and Enhance Community Engagement Priority No. 6: Create a Healthy and Safe Community
Background
On May 19, 2022 and May 26, 2022, the City Council hosted the two scheduled Fiscal Year (FY) 2022-2023 Budget Study Sessions. Staff presented the following areas of the budget during those sessions:

Fiscal Year 2022-23 Budget overview
Measure P and Measure HH
Department budget presentation
Two-year CIP budget
Questions and deliberations

11.1 Packet Pg. 119
At the conclusion of the last meeting, the City Council provided directions and recommendations to staff to complete the development of FY 2022-2023 Budget. Staff has incorporated those items in the budget and will itemize and explain each item in the following analysis section
Analysis
Proposed to Recommended Adopted Budget
During the questions and deliberation process in the May 26, 2022, 2nd Budget study session, the City Council provided several directions and recommendations to the proposed budget.

The following table provides a list of those items and summarizes the changes from Proposed budget to the budget to be adopted.

No. Recommendation Department/Division General
fund
Special rev
funds Other funds Recommended Source
Balanced Proposed Budget N/A $ - $ - $ - N/A
1 Adjustments due to double counted budgeted line
items
City Manager and
Community Services
(17,500) N/A
2 Allocation of PD personnel costs - from General fund
to ARPA fund Police (700,000) 700,000 - ARPA fund
3 Tranfer to CIP fund - to support 12" Water Main
project
PW/CIP 700,000 - (700,000) General fund
4 Additional Pandemic response expenditures -
extended through December 2022 Admin - 35,000 - ARPA fund 5 Park Recreation Aides Community Service 18,000 - -
General fund/ARPA
fund transfer
6 2 Full-time Community Service Officers (CSO) and
adjustments to Community Service Aide (CSA)
positions
Police 226,640 - -
General fund/ARPA
fund transfer
7 Reserve Officer Program Police 144,000 - -
General fund/ARPA
fund transfer
8 Additional tree maintenance augumentation Maintenance 50,000 General fund/ARPA
fund transfer
9 General maintenance augumentation Maintenance 50,000
General fund/ARPA
fund transfer
10 City hall tenant improvements to the former Police
Evidence Room PW/CIP 350,000
General fund/ARPA
fund transfer
11 Transfer from ARPA fund to General fund N/A (821,140) 821,140 General fund/ARPA
fund transfer
Total change from Proposed to Adopted $ - $1,556,140 $ (700,000) Fiscal imapct
The items numbered 6-11 include new information to the Council and described as follows:

Enhancement of Community Service Officers (No.6)
As in the staff report for 5/26 budget session, staff recommended developing a new model for deployment of the Police Department Community Service employees to promote the recruitment and enhance the police community services, which the Council agreed upon.

Now, staff recommend converting the existing 6 part-time Community Service Aide positions to 2 full-time Community Service Officer (CSO) positions and 4 part-time CSO positions which will require an additional appropriation on the General fund for approximately $227K.

The cost estimate is based on gross estimates pending HR analysis of job descriptions and comparable salary ranges, and staff will return to the Council for a formal classification approval in a future City Council meeting. The decision to re-classify the CSA position to an already existing CSO was based upon Council direction to increase the CSA compensation and the convenience of an existing CSO classification which accomplishes the pay increase and accommodates the expanded duties.

11.1 Packet Pg. 120
Reserve Officer Program (No.7)
Part of the discussion regarding Police Department enhancement during the budget session, staff also recommended considering a Reserve Officer Program in which retired officers or inexperienced police academy graduates who need additional development may be employed on a part-time basis to increase police capacity, as needed. A Reserve Officer possesses the same level of authority as a full-time police officer, yet the position does not receive benefits. The costs to the General fund would be approximately $144K with the assumption of 20hrs/week for 3 positions. Staff will return to the Council for a formal classification approval in a future City Council meeting.

Tree Maintenance and General Maintenance Augmentations (No.8 and No.9) The City Council directed staff to enhance City’s general arborist services to help with street trees and trees in public parks in FY 2022-23 Budget which is estimated to be an additional $50,000 to the General fund. In addition, the Council also recommended an additional $50,000 for general maintenance costs due to increases on demands on the City’s maintenance division.

City Hall Tenant Improvements to The Former Police Evidence Room (No.10) The City Council raised a question regarding status of City Hall Tenant Improvement plan which had been deferred due to COVID-19 pandemic after completing the design packet.

The Council suggested staff plan to restore the project and include the renovation costs for the former police evidence room in FY 2022-23 Budget. The estimated cost for these improvements is $350,000.

Transfer from ARPA fund to General fund (No.11)
Due to the additional items (No.1-11) in the table, the General fund budget would have a budget deficit of $821K. Staff recommended to keep the General fund balanced by transferring $821K from ARPA fund to the General fund.

FY 2022-23 Citywide Budget
The FY 2022-23 Citywide Budget (excluding Trust & Agency) reflects total revenues of $50.8M and total expenditures of $48.8M resulting in positive net change in fund balance of $2.0M across all City funds.

Description
General
Fund
Restricted
Funds
Capital
Funds
Enterprise
Funds

TOTAL CITY
FUNDS
Successor
Trust Fund
Total Revenues 29,449 13,548 3,009 4,808 50,812 5,511
Total Expenditures (28,452) (11,238) (966) (8,110) (48,766) (1,664) Net Sources / (Uses) 997 2,310 2,042 (3,303) 2,046 3,847 Net Transfers (997) 297 700 - - -
Change in Fund - 2,607 2,742 (3,303) 2,046 3,847
FY 22-23 Budget - Citywide Funds (In 000's)
The adopted budget reflects a shift in proposed budget and funding method for the American Rescue Plan (ARPA) monies. As such, there are several changes between the proposed and final adopted budget which are described in the previous section of this report. In the fund group analysis below, the changes impacting the funds is described.

11.1 Packet Pg. 121
FY 2022-23 General Fund Budget
The FY 2022-23 General Fund Budget revenues of $30.3M consists of operating revenues of $29.4M plus ARPA “revenue loss” transfers of $0.8M; offset by expenditures of $29.8M consisting of $28.8M operating and capital expenditures and $1.0M transfers to support other fund operating deficits. This balance condition in no way resolves the heightened duress and pressure of the General Fund, and we may set our expectations that conditions are volatile and subject to close monitoring and potential adjustment. The table below reflects the detail fund changes:

Revenues Expenditures In Out
10 General Fund $ 29,168,770 $ (26,602,520) $ 350,000 $ 821,140 $ (4,007,390) $ (270,000) 11 IT Replacement Fund $ - $ (1,121,860) $ - $ 1,121,860 $ - $ - 12 Equipment & Vehicles $ - $ (95,000) $ - $ 95,000 $ - $ - 13 Self Insurance $ - $ (972,170) $ - $ 972,170 $ - $ - 16 Community Benefit Fund $ - $ - $ - $ - $ - $ -
17 Com Dev Pass Thru $ 280,000 $ (10,000) $ - $ - $ - $ 270,000 $ - $ - $ - $ (3,010,170) $ 3,010,170 $ -
$ 29,448,770 $ (28,801,550) $ 350,000 $ - $ (997,220) $ - FY 2022-23 General Fund Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
Net Change
Fund Balance

ELIMINATING ENTRY
General Fund
The General Fund deficit is reduced from $1.6M baseline deficit to a breakeven point.

The city is balancing the budget through improvement of revenue projections, reductions in rolling stock and equipment purchases, reductions in professional services, and allocation of PD costs to the ARPA fund. As mentioned above, there were additional incremental budget items recommended by the Council totaling $821K during the deliberation process in the previous budget session which will be covered by a transfer from the ARPA fund. We reiterate below, the significant and critical resource challenges impacting the General Fund:

Revenue Type FY 2022-23 Budget Impact Status
Property Tax in Lieu $2.5M
No funding source other than State budget repayment. No State mandate to repay. Total shortfall is projected to be about $2.5M. Will know State repayment status in one year.

Redevelopment Property Tax Trust Fund $0.65M
Excess property tax from Redevelopment Dissolution. Chula Vista Court decision changed calculation of "pass through" agreements. Estimate impact until 2033.

Transient Occupancy Tax $1.1M Hotel occupancy recovery trajectory unknown. Current recovery stubbornly low.

Extended time gap in new development Unknown Capacity planning and infrastructure issues both within and outside City oversight.

We further note the budget does not reflect: (1) SFCJPA Reach II Contribution ($1.5M); (2) Acquisition funding for the Library Property ($1.2M); (3) Comprehensive building plans for Martin Luther King Jr. Park Redesign ($1.1M); and (4) CEQA and design for Bell Street Park ($0.9M). There projects are currently unfunded, and Staff plan to return to the Council for additional information and seek Council approval.

FY 2022-23 Special Revenue Funds Budget
Budgeted revenues and expenditures total $13.2M and $11.0M, respectively; increased by net operating transfers in of $0.3M. Capital funding consists of SB1-

11.1 Packet Pg. 122
funded and County Measure A and Measure W projects for qualified street and sidewalk improvements.

Revenues Expenditures In Out
213 Police Grants $ 162,000 $ (191,420) $ - $ - $ - $ (29,420) 215 Misc Federal and State Grants $ 57,000 $ (45,000) $ - $ - $ - $ 12,000 230 Local Grants $ 153,000 $ - $ - $ - $ - $ 153,000
231 CYSFF TOT $ 144,000 $ (45,280) $ - $ - $ - $ 98,720 232 Measure C $ 1,000 $ (207,300) $ - $ - $ - $ (206,300) 290 ARPA- American Rescue Plan $ 3,531,250 $ (830,440) $ - $ - $ (821,140) $ 1,879,670 Community Programs $ 4,048,250 $ (1,319,440) $ - $ - $ (821,140) $ 1,907,670 201 State Gas Tax $ 1,541,000 $ (772,210) $ (550,000) $ 64,500 $ - $ 283,290 202 Measure A $ 636,000 $ (3,210) $ (500,000) $ - $ - $ 132,790 203 NPDES $ 247,500 $ (551,370) $ - $ 303,870 $ - $ -
206 Park In Lieu $ - $ - $ - $ - $ - $ -
221 Lighting District $ 678,930 $ (177,080) $ - $ - $ - $ 501,850 222 Drainage District $ 144,000 $ (431,270) $ - $ 287,270 $ - $ - 234 County Measure W $ 304,000 $ (1,500) $ (200,000) $ - $ - $ 102,500 Infrastructure Programs $ 3,551,430 $ (1,936,640) $ (1,250,000) $ 655,640 $ - $ 1,020,430 204 Rent Stabilization $ 544,860 $ (657,860) $ - $ - $ - $ (113,000) 207 Housing In Lieu $ 1,042,000 $ (4,030,160) $ - $ - $ - $ (2,988,160) 209 Housing Assistance Program $ 4,500 $ (6,250) $ - $ - $ - $ (1,750) 216 Commercial IF $ 2,475,280 $ - $ - $ - $ - $ 2,475,280 218 Affordable Housing TOT $ 158,000 $ (27,280) $ - $ - $ - $ 130,720 219 Measure HH $ 1,702,280 $ (619,060) $ - $ - $ - $ 1,083,220 220 Lo-Mod Housing Successor $ 20,000 $ (1,222,630) $ - $ 462,720 $ - $ (739,910) 233 Silicon Valley Community $ 1,000 $ (168,440) $ - $ - $ - $ (167,440) Affordable Housing Programs $ 5,947,920 $ (6,731,680) $ - $ 462,720 $ - $ (321,040) Total Special Revenue Funds $ 13,547,600 $ (9,987,760) $ (1,250,000) $ 1,118,360 $ (821,140) $ 2,607,060 Net Change
Fund Balance
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
FY 2022-23 Special Revenue Funds Budget Summary
Special Revenue Funds are categorized for ease of understanding into the following subcategories:
· Community Program-related: Total revenues of $4.0M are offset by total expenditures of $1.3M. This category changed significantly due to ARPA funding. The State of California estimates ARPA total allocation of $7M - of this amount $3.5M revenue, the second tranche of payment, is included in the budget. ARPA programs costs are predominantly used to fill the General fund deficit due to the revenue challenges including revenue loss from COVID-19. All revenue loss components are reflected as transfers to the General Fund of $0.8M and the PD cost allocation to the ARPA fund of $0.7M.
· Infrastructure-related: Operating revenues of $3.6M plus transfers in of $0.7M are offset by total expenditures of $3.2M, including restricted transportation capital spending of $1.3M. Notably, the General Fund is partially supporting NPDES and Drainage District funds for a total of $591K. This is increased from previous year due mainly to increases in Maintenance Division expenditures related to street cleaning, costs to repair existing fence for Runnymede

11.1 Packet Pg. 123
drainage system, as well as, system maintenance and repair for Pump Station equipment. Costs also include increased staff and program costs related to the Environmental Programs activity. As previously indicated, long-term capital, program and maintenance costs must be analyzed in order to support the basis for potential assessment or other district funding for the underlying infrastructure.
· Affordable Housing-related: Total revenues of $6.0M and transfers in ($0.5M) are offset by total expenditures of $6.7M, including budgeted affordable housing loans of $3.4M - HEART matching loans ($1.7M), CalHome ($1.0M), and Mid-Peninsula Gap funding ($0.7M).

FY 2022-23 Capital Funds Budget
Budgeted revenues and expenditures total $3.0M and $0.1M respectively; increased by operating transfers in of $0.7M.

Revenues Expenditures In Out
301 Capital Improvement Fund $ 458,000 $ (110,850) $ (855,410) $ 700,000 $ - $ 191,740 303 Capital Grant $ - $ - $ - $ - $ - $ -
305 Parks & Trails $ 233,000 $ - $ - $ - $ - $ 233,000
306 Public Facilities $ 405,000 $ - $ - $ - $ - $ 405,000 307 Transportation $ 1,756,570 $ - $ - $ - $ - $ 1,756,570 308 RBD-I Storm D $ 3,850 $ - $ - $ - $ - $ 3,850
309 RBD-O Storm D $ 152,150 $ - $ - $ - $ - $ 152,150
Capital Funds $ 3,008,570 $ (110,850) $ (855,410) $ 700,000 $ - $ 2,742,310 FY 2022-23 Capital Funds Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
Net Change
Fund Balance
Notable trends include restoration of impact fee revenues from the deferred development issues related to the Sanitary District which staff expect the revenues to start coming in FY 2022-23. However, staff anticipate a chance of downward adjustments to the revenue projections as status of the District issues keeps evolving.

Several years ago, the City embarked on an assertive capital infrastructure plan to provide adequate matching funds for grant funding sources. To date, the City has committed grant and internal monies required to fund major projects such as SFCJPA Safer Bay, SFCJPA Reach II, Bay Road Improvement, University Avenue Interchange, Addison Avenue, etc.

The City has been fortunate to fund both capital contribution and significant, post-construction maintenance costs on completed projects; however, as noted previously, near-term revenue growth was a challenge prior to COVID-19, and the City now faces more intense challenges in the ability to meet increasing operational cost demands, provide maintenance of large infrastructure projects, and co-fund such projects on a “pay as you go basis”. For example, 12” Water Main project, one of the urgent major projects, needed to tap into the General fund reserve for $0.7M in addition to $3.8M funding source from the water capital fund which reflects into $0.7M transfer-in from the General fund.

Despite major progress toward mitigating several infrastructure risks, several significant, critical capital-related regulatory issues remain, primarily related to water distribution and storage; storm water and storm water facilities; and lack of City-owned facilities. Given the age and condition of much of the City’s major infrastructure

11.1 Packet Pg. 124
systems, the City will need to continue to address critical funding challenges through aggressive grants funding application, as well as, careful and targeted use of existing reserves. The City may not ever experience the excess general surpluses realized in recent years due to explosive growth in property values, new tax measures, and suppressed service provision.

FY 2022-23 Enterprise Funds
Budgeted revenues and expenditures total $4.0M and $3.8M, respectively.

Revenues Expenditures In Out
510 Water Service Fund $ 482,500 $ (421,730) $ - $ - $ - $ 60,770 511 Water Capital Fund $ 533,000 $ (100,000) $ (4,014,000) $ - $ - $ (3,581,000) 512 Water Meter Fund $ 289,000 $ - $ - $ - $ - $ 289,000 513 Water Capacity Fee Fund $ 490,000 $ - $ (456,000) $ - $ - $ 34,000 Water Enterprise $ 1,794,500 $ (521,730) $ (4,470,000) $ - $ - $ (3,197,230) 520 Garbage Service Fund $ 3,013,000 $ (3,118,740) $ - $ - $ - $ (105,740) Total Enterprise $ 4,807,500 $ (3,640,470) $ (4,470,000) $ - $ - $ (3,302,970) FY 2022-23 Enterprise Funds Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
Net Change
Fund Balance
The net change in fund balance totals a deficit of $3.2M with the following major trends:
· The Water Enterprise consists of lease revenue and capital surcharges paid or passed to the City from Veolia. Water Enterprise charges collected from customers provides a primary source of revenue for major capital improvements to the water system infrastructure. The city also pursues federal and state grant opportunities. The City Council has recently approved 12” Water Main project, one of the critical projects totaling approximately

5.0M which require internal funding sources, including the water capital fund ($3.8M), the water capacity fee fund ($0.5M) and a transfer from the General fund to CIP ($0.7M) which are the main cause of the $3.2M deficit in net change in fund balance.
· The Solid Waste (garbage) Enterprise consists of residential solid waste services collected through the County property tax rolls and passed to Recology. Recology direct-bills the multi-family housing and commercial accounts. The fund also accounts for local solid waste service improvement programs.

FY 2022-23 and FY 2023-24 Two-year Capital Improvement Program Update A Capital Improvement Plan (“CIP”) serves as a City's road map for preserving, maintaining, and developing any City-owned public infrastructure or assets. Generally, a CIP provides a five- to ten-year plan for all individual capital projects, equipment purchases, and major studies and includes construction, scheduling, and financing for each project. A comprehensive CIP clearly delineates the objectives of capital programs and its relationships to a City’s long-range development plans.

On September 15, 2020 the City Council adopted the Ten-year CIP. Since the adoption of the CIP in 2020, there have been a number of additional projects that are recommended to be included in the CIP based on City Council priorities, grants, and staff recommendations. Acting Public Works Director presented Two-year Capital Improvement Program Update for FY 2022-

11.1 Packet Pg. 125
23 and FY 2023-24 during the previous budget study session (please see the attachment# 3).

Public Notice
The public was provided notice of this agenda item by publishing a notice of the hearing dates in “Mercury News” and, also, posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website.

Attachments

1. Resolution for FY22-23 Budget

2. Financial Summary - All Funds

3. FY 2022-23 and FY 2023-24 Two-year Capital Improvement Program Update

4. Resolution for FY 2022-23 and FY 2023-24 Two-year Capital Improvement Program Update
Attachments

1. Resolution for FY22-23 budget

2. Financial Summary - All Funds

3. FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update

4. Resolution for FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update

11.1 Packet Pg. 126
1 of 4
RESOLUTION NO. XX – 2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO ADOPTING THE FISCAL YEAR 2022-23 REVENUE AND EXPENDITURE BUDGET

FOR THE CITY OF EAST PALO ALTO
WHEREAS, the City Council desires a spending plan for the City of East Palo Alto General, Special Revenue, Capital, Fiduciary, and Enterprise Funds in order to account for Fiscal Year 2022-23 anticipated revenues and to appropriate projected expenditures; and WHEREAS, City of East Palo Alto Municipal Code section 3.08.110 requires the adoption of an annual budget no later than June 30th prior to the beginning of the fiscal year; and WHEREAS, the City Council held budget message and budget study sessions between April 19, 2022 and May 26, 2022, including a final Budget Hearing on this date to discuss the City’s anticipated revenues and expenditure programs and to obtain public comment regarding the Fiscal Year 2022-23 Budget; and
WHEREAS, such public hearings were duly noticed not less than seven days nor more than 21 days prior to the first hearing held on May 19, 2022 in accordance with East Palo Alto Municipal Code section 3.08.070;

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY:

1. Adopts the FY 2022-23 Budget (Exhibit A)

2. Authorizes the use of available Reserve Balances totaling $8,202,720 and the Finance Director asserts such funds are available, in order to fund certain General Fund operations, enterprise fund and other restricted fund deficits (Exhibit B)
PASSED AND ADOPTED this 7
th day of June 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

11.1.a
Packet Pg. 127 Attachment: Resolution for FY22-23 budget (2286 : Adoption of Fiscal Year 2022-23 Budget) 2 of
4 Ruben Abrica
Mayor
ATTEST:

James Colin
Acting City Clerk
APPROVED AS TO FORM:

Valerie J. Armento
Interim City Attorney

11.1.a
Packet Pg. 128 Attachment: Resolution for FY22-23 budget (2286 : Adoption of Fiscal Year 2022-23 Budget) 3 of
4 Exhibit A
Revenues Expenditures In Out
10 General Fund $ 29,168,770 $ (26,602,520) $ 350,000 $ 821,140 $ (4,007,390) $ (270,000) 11 IT Replacement Fund $ - $ (1,121,860) $ - $ 1,121,860 $ - $ - 12 Equipment & Vehicles $ - $ (95,000) $ - $ 95,000 $ - $ - 13 Self Insurance $ - $ (972,170) $ - $ 972,170 $ - $ - 16 Community Benefit Fund $ - $ - $ - $ - $ - $ -
17 Com Dev Pass Thru $ 280,000 $ (10,000) $ - $ - $ - $ 270,000 $ - $ - $ - $ (3,010,170) $ 3,010,170 $ -
$ 29,448,770 $ (28,801,550) $ 350,000 $ - $ (997,220) $ - 213 Police Grants $ 162,000 $ (191,420) $ - $ - $ - $ (29,420) 215 Misc Federal and State Grants $ 57,000 $ (45,000) $ - $ - $ - $ 12,000 230 Local Grants $ 153,000 $ - $ - $ - $ - $ 153,000
231 CYSFF TOT $ 144,000 $ (45,280) $ - $ - $ - $ 98,720 232 Measure C $ 1,000 $ (207,300) $ - $ - $ - $ (206,300) 290 ARPA- American Rescue Plan $ 3,531,250 $ (830,440) $ - $ - $ (821,140) $ 1,879,670 Community Programs $ 4,048,250 $ (1,319,440) $ - $ - $ (821,140) $ 1,907,670 201 State Gas Tax $ 1,541,000 $ (772,210) $ (550,000) $ 64,500 $ - $ 283,290 202 Measure A $ 636,000 $ (3,210) $ (500,000) $ - $ - $ 132,790 203 NPDES $ 247,500 $ (551,370) $ - $ 303,870 $ - $ -
206 Park In Lieu $ - $ - $ - $ - $ - $ -
221 Lighting District $ 678,930 $ (177,080) $ - $ - $ - $ 501,850 222 Drainage District $ 144,000 $ (431,270) $ - $ 287,270 $ - $ - 234 County Measure W $ 304,000 $ (1,500) $ (200,000) $ - $ - $ 102,500 Infrastructure Programs $ 3,551,430 $ (1,936,640) $ (1,250,000) $ 655,640 $ - $ 1,020,430 204 Rent Stabilization $ 544,860 $ (657,860) $ - $ - $ - $ (113,000) 207 Housing In Lieu $ 1,042,000 $ (4,030,160) $ - $ - $ - $ (2,988,160) 209 Housing Assistance Program $ 4,500 $ (6,250) $ - $ - $ - $ (1,750) 216 Commercial IF $ 2,475,280 $ - $ - $ - $ - $ 2,475,280 218 Affordable Housing TOT $ 158,000 $ (27,280) $ - $ - $ - $ 130,720 219 Measure HH $ 1,702,280 $ (619,060) $ - $ - $ - $ 1,083,220 220 Lo-Mod Housing Successor $ 20,000 $ (1,222,630) $ - $ 462,720 $ - $ (739,910) 233 Silicon Valley Community $ 1,000 $ (168,440) $ - $ - $ - $ (167,440) Affordable Housing Programs $ 5,947,920 $ (6,731,680) $ - $ 462,720 $ - $ (321,040) Total Special Revenue Funds $ 13,547,600 $ (9,987,760) $ (1,250,000) $ 1,118,360 $ (821,140) $ 2,607,060 301 Capital Improvement Fund $ 458,000 $ (110,850) $ (855,410) $ 700,000 $ - $ 191,740 303 Capital Grant $ - $ - $ - $ - $ - $ -
305 Parks & Trails $ 233,000 $ - $ - $ - $ - $ 233,000
306 Public Facilities $ 405,000 $ - $ - $ - $ - $ 405,000 307 Transportation $ 1,756,570 $ - $ - $ - $ - $ 1,756,570 308 RBD-I Storm D $ 3,850 $ - $ - $ - $ - $ 3,850
309 RBD-O Storm D $ 152,150 $ - $ - $ - $ - $ 152,150
Capital Funds $ 3,008,570 $ (110,850) $ (855,410) $ 700,000 $ - $ 2,742,310 510 Water Service Fund $ 482,500 $ (421,730) $ - $ - $ - $ 60,770 511 Water Capital Fund $ 533,000 $ (100,000) $ (4,014,000) $ - $ - $ (3,581,000) 512 Water Meter Fund $ 289,000 $ - $ - $ - $ - $ 289,000 513 Water Capacity Fee Fund $ 490,000 $ - $ (456,000) $ - $ - $ 34,000 Water Enterprise $ 1,794,500 $ (521,730) $ (4,470,000) $ - $ - $ (3,197,230) 520 Garbage Service Fund $ 3,013,000 $ (3,118,740) $ - $ - $ - $ (105,740) Total Enterprise $ 4,807,500 $ (3,640,470) $ (4,470,000) $ - $ - $ (3,302,970) $ 50,812,440 $ (42,540,630) $ (6,225,410) $ 1,818,360 $ (1,818,360) $ 2,046,400 705 Successor Operating $ 3,959,000 $ (114,110) $ - $ - $ - $ 3,844,890 706 Successor Debt Service $ 1,552,430 $ (1,550,310) $ - $ - $ - $ 2,120 Successor Agency $ 5,511,430 $ (1,664,420) $ - $ - $ - $ 3,847,010

ELIMINATING ENTRY
General Fund
FY 2022-23 General Fund Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
Net Change
Fund Balance

11.1.a
Packet Pg. 129 Attachment: Resolution for FY22-23 budget (2286 : Adoption of Fiscal Year 2022-23 Budget) 4 of
4 Exhibit B
10 General Fund (270,000)
213 Police Grants (29,420)
232 Measure C (206,300)
204 Rent Stabilization (113,000)
207 Housing In Lieu (2,988,160)
209 Housing Assistance Program (1,750)
220 Lo-Mod Housing Successor (739,910)
233 Silicon Valley Community (167,440)
511 Water Capital Fund (3,581,000)
520 Garbage Service Fund (105,740)
(8,202,720)
FY 2022-23 Budgeted User of Reserve
Total User of Fund Reserves

11.1.a
Packet Pg. 130 Attachment: Resolution for FY22-23 budget (2286 : Adoption of Fiscal Year 2022-23 Budget)

FINANCIAL SUMMARY
FY 2022-2023 Budget
The Financial Summary section contains the following adopted budget and financial summary information:

Budget Information:
• Citywide Budget Overview
o FY 2022-23 Budget by Fund Category
• General Fund Overview
o FY 2022-23 General Fund and Internal Reserve Funds Budget • Special Revenue Funds Overview
o FY 2022-23 Special Revenue Funds Budget
 FY 2022-23 Community Programs Budget
 FY 2022-23 Housing Programs Budget
 FY 2022-23 Transportation and Infrastructure Programs Budget • Capital Funds Overview
o FY 2022-23 Capital Funds Budget
• Enterprise Funds Overview
o FY 2022-23 Enterprise Fund Budget
Other Financial Information:
• General Fund Revenues by Major Category
• General Fund Expenditures by Major Category

11.1.b
Packet Pg. 131 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget)

CITYWIDE BUDGET OVERVIEW
The Citywide budget overview provides a one-page view across all the various fund-types operating within the City. This view gives a full perspective of total revenues by character and total expenditures by department across all City funds. The City operates the following fund-group types:
• General and Internal Reserve Funds
• Special Revenue Funds
• Capital Projects Funds
• Enterprise Funds
• Successor Agency Trust Fund

11.1.b
Packet Pg. 132 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) General Fund
and Internal
Reserves
Special
Revenue Funds
Capital
Improvement
Funds
Enterprise Funds City  Total Successor
Trust Fund
GRAND
TOTAL
Revenues
Property Tax            15,725,420              787,930 ‐        ‐            16,513,350          5,496,430      22,009,780 Sales Tax              5,845,000 ‐ ‐ ‐              5,845,000 ‐        5,845,000 Utility Users Tax              1,702,680 ‐ ‐ ‐              1,702,680 ‐        1,702,680 Transient Occupancy Tax              1,100,000              276,000 ‐        ‐              1,376,000 ‐        1,376,000 Other State and Local Taxes 25,000          4,107,280 ‐        ‐              4,132,280 ‐        4,132,280 Franchise Fees              1,196,000 ‐ ‐ ‐              1,196,000 ‐        1,196,000 Licenses, Fees, and Permits              1,778,550          3,250,140                2,546,570 485,000              8,060,260 ‐        8,060,260 Fines and Forfeitures                 180,000 ‐ ‐ ‐                 180,000 ‐           180,000 Use of Money and Property                 336,500              243,000 162,000 547,500              1,289,000               15,000        1,304,000 Grants and Intergovernmental                 215,000          4,723,250 ‐        ‐              4,938,250 ‐        4,938,250 Charges for Current  Services              1,269,620                10,000 ‐ 3,625,000              4,904,620 ‐        4,904,620 Other Miscellaneous 75,000              150,000 300,000 150,000                 675,000 ‐           675,000 Total Revenues            29,448,770        13,547,600                3,008,570 4,807,500            50,812,440         5,511,430     56,323,870 Expenditures
City Council                 169,030 ‐ ‐ ‐                 169,030 ‐           169,030 City Attorney                 827,830                35,000 ‐        ‐                 862,830 7,500           870,330 City Clerk                 405,320 ‐ ‐ ‐                 405,320 ‐           405,320 City Manager              1,606,770                37,290 70,850 44,280              1,759,190 ‐        1,759,190 Administrative Services              1,896,610              292,620 ‐        ‐              2,189,230 ‐        2,189,230 Finance              1,251,370                59,870 ‐ 21,000              1,332,240               23,230        1,355,470 Community Development              3,119,390          6,363,235 ‐        ‐              9,482,625 ‐        9,482,625 Public Works              4,368,250          1,317,282 40,000 565,190              6,290,722 ‐        6,290,722 Police            13,383,970              891,420 ‐        ‐            14,275,390 ‐      14,275,390 Non‐Departmental ‐ ‐
Capital/Technology                 350,000          1,250,000 855,410 4,470,000              6,925,410 ‐        6,925,410 Debt Service ‐ ‐ ‐    ‐ ‐          1,556,310        1,556,310 Insurance and Settlements                 897,170 ‐ ‐ ‐                 897,170 ‐           897,170 Other Non‐Departmental              1,037,570              271,683 ‐ 2,879,510              4,188,763               65,500        4,254,263 Overhead Allocation                (861,730)              719,360 ‐ 130,490 (11,880)               11,880 ‐ Total Expenditures            28,451,550        11,237,760 966,260 8,110,470            48,766,040         1,664,420     50,430,460 Net Sources / (Uses) 997,22                  0         2,309,840               2,042,310                  (3,302,970)             2,046,400         3,847,010       5,893,410 Other Financing Sources / (Uses)
Transfers In                 821,140          1,118,360 700,000 ‐              2,639,500 ‐        2,639,500 Transfers Out            (1,818,360)            (821,140) ‐       ‐            (2,639,500) ‐      (2,639,500) Net Operating Transfers                (997,220)              297,220 700,000 ‐ ‐ ‐ ‐ Change in Fund Balance ‐          2,607,060                2,742,310 (3,302,970)              2,046,400         3,847,010        5,893,410 Other  Changes              2,200,000 ‐ ‐ ‐              2,200,000 ‐        2,200,000 Projected Fund Balance
July 01, 2021 Balance*            24,584,320        32,077,000                8,803,000 5,428,000            70,892,320     (16,586,000)     54,306,320 June 30, 2022 Balance           26,784,320       34,684,060            11,545,310 2,125,030           75,138,720     (12,738,990)     62,399,730 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2022-2023 BUDGET BY FUND CATEGORY

11.1.b
Packet Pg. 133 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget)

GENERAL FUND OVERVIEW
General Fund
The General Fund is the primary operating fund of the City. The fund accounts for all revenues, expenditures, transfers, and other activity not accounted for in other City funds.

General Fund revenues are derived from five major sources including, Property Tax, Sales and Use Tax, Transient Occupancy Tax (TOT), Utility Users Tax, and Business License Tax. These taxes account for approximately 87% of total General Fund revenues, excluding development pass-through activity.

General Fund uses primarily consist of personnel, contract, and purchase services, supplies and materials, and other expenditures.

General Fund Reserve Sub-Funds
Information Services
The Information Services Fund accounts for the accumulation of resources to acquire or improve information technology equipment and software, fund the Redwood City IT services contract, IT equipment replacement, and software licensing and maintenance costs.

Equipment and Vehicle Replacement
The Equipment and Vehicle Replacement Fund accounts for monies utilized to acquire and replace equipment and vehicles.

Insurance Reserve
The Insurance Reserve Fund accounts for the accumulation of resources to cover the costs of unanticipated loss and settlements due to property, casualty, or liability exposures and to cover the costs of PLAN JPA insurance coverage in excess of the City’s $100,000 self-insured limit per liability claim.

Development Pass-Through
The Development Pass-Through Fund accounts for pass-through development fee activity and temporary staffing needs anticipated for unusually high development activity.

Note: No budget activity for the Contingency Reserve and Community Benefits Funds.

11.1.b
Packet Pg. 134 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) General Fund
F010
Info Services
Reserve
F011
Equipment
and Vehicle
Reserve    F012
Insurance
Reserve F013
Development
Pass Through
F017
Eliminating Total
Revenues
Property Tax              15,725,420 ‐ ‐ ‐ ‐       ‐     15,725,420 Sales Tax                5,845,000 ‐ ‐ ‐ ‐       ‐       5,845,000 Utility Users Tax                1,702,680 ‐ ‐ ‐ ‐       ‐       1,702,680 Transient Occupancy Tax                1,100,000 ‐ ‐ ‐ ‐       ‐       1,100,000 Other State and Local Taxes 25,000 ‐ ‐ ‐ ‐       ‐             25,000 Franchise Fees                1,196,000 ‐ ‐ ‐ ‐       ‐       1,196,000 Licenses, Fees, and Permits                1,778,550 ‐ ‐ ‐ ‐       ‐       1,778,550 Fines and Forfeitures 180,000 ‐ ‐ ‐ ‐       ‐          180,000 Use of Money and Property 336,500 ‐ ‐ ‐ ‐       ‐          336,500 Grants and Intergovernmental 215,000 ‐ ‐ ‐ ‐       ‐          215,000 Charges for Current  Services 989,620 ‐ ‐ ‐            280,000 ‐       1,269,620 Other Miscellaneous 75,000 ‐ ‐ ‐ ‐       ‐             75,000 Total Revenues              29,168,770 ‐ ‐                  ‐            280,000 ‐     29,448,770 Expenditures
City Council 169,030 ‐ ‐ ‐ ‐       ‐          169,030 City Attorney 752,830 ‐ ‐       75,000 ‐ ‐          827,830 City Clerk 282,820              122,500 ‐ ‐                ‐          405,320 City Manager                1,601,770 5,000 ‐ ‐                ‐       1,606,770 Administrative Services                1,489,560              407,050 ‐ ‐                ‐       1,896,610 Finance                1,215,870                35,500 ‐ ‐                ‐       1,251,370 Community Development                3,035,390                79,000                 5,000 ‐ ‐       3,119,390 Public Works                4,323,250                35,000 ‐              10,000 ‐       4,368,250 Police              13,157,370              136,600               90,000 ‐ ‐     13,383,970 Non‐Departmental
Major Capital 350,000 ‐ ‐ ‐ ‐          350,000
Debt Service ‐ ‐ ‐ ‐             ‐ ‐
Insurance and Settlements ‐ ‐ ‐            897,170 ‐ ‐          897,170 Other Non‐Departmental 736,360              301,210 ‐ ‐                ‐       1,037,570 Overhead Allocation (861,730) ‐ ‐                 ‐ ‐         (861,730) Total Expenditures              26,252,520           1,121,860               95,000            972,170              10,000 ‐     28,451,550 Net Sources / (Uses) 2,916,250         (1,121,860)             (95,000)          (972,170) 270,000 ‐          997,220 Other Financing Sources / (Uses)
Transfers In 821,140           1,121,860               95,000            972,170 ‐       (2,189,030)          821,140 Transfers Out               (4,007,390) ‐ ‐                 ‐ ‐         2,189,030     (1,818,360) Net Operating Transfers              (3,186,250)           1,121,860               95,000            972,170 ‐ ‐         (997,220) Change in Fund Balance                  (270,000) ‐ ‐                 ‐            270,000 ‐ ‐ Other  Changes                2,200,000 ‐ ‐                  ‐ ‐       ‐       2,200,000 Projected Fund Balance
July 01, 2022 Balance*              24,584,320 ‐ ‐                  ‐ ‐       ‐     24,584,320 June 30, 2023 Balance             26,514,320 ‐ ‐ ‐ 270,000 ‐    26,784,320 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2022-2023 GENERAL FUND BUDGET

11.1.b
Packet Pg. 135 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget)

SPECIAL REVENUE FUNDS OVERVIEW
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes, other than major capital projects or debt service. GASB 54 clarifies that the proceeds of specific a revenue source, whether legal or administrative, is the foundation for classification of a Special Revenue Fund.

Community Programs
Public Safety Grants
The Public Safety Grants Fund accounts for revenues and expenditures for the Citizen Options for Public Safety Program and Supplemental Law Enforcement Services Fund (COPS/SLESF).

Federal and State Grants
Federal and State Grants Fund accounts for the Congregate Meals/Senior Nutrition and Senior Transportation grant programs passed through the San Mateo County Office of Aging and Adult Services.

Local Grants
The Local Grants Fund accounts for all other local grant activity not accounted for in separate funds.

CYSFF
The CYSFF Fund accounts for 10% of the Transient Occupancy Tax (TOT) collected as approved by voters to fund various nonprofit organizations providing services to children, youth, and families.

Measure C
The Measure C Fund accounts for activities related to the Measure C Parcel tax approved by the voters in November 2006 for a period of ten years. The tax is sunset, and the remaining funds are restricted to support violence prevention and public safety intervention.

American Rescue Plan Act (ARPA)
The ARPA fund accounts for federal allocation funding signed into law by the President in March 2021.

The funds are restricted for the purpose of providing support in responding to the impact of COVID-19, including local efforts to contain impacts on our community, residents, and businesses.

Housing Programs
Rent Stabilization
The Rent Stabilization Fund accounts for revenues and expenditures to support rent stabilization programs and activities.

Housing in Lieu

11.1.b
Packet Pg. 136 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget)

SPECIAL REVENUE FUNDS OVERVIEW
The Housing in Lieu Fund accounts for developer-agreed payments and ordinance fees in lieu of providing affordable housing.

Housing Assistance
The Housing Assistance Fund accounts for first time home buyer assistance program activities.

Housing Commercial Impact
The Housing Commercial Impact Fee Fund accounts for fees charged to developers of nonresidential development projects to mitigate the project impact on the need for affordable housing as a result of the project development.

Housing TOT
The Housing TOT Fund accounts for 10% of the Transient Occupancy Tax (TOT) collected as approved by voters to fund affordable housing development activity and programs.

Measure HH
The Measure HH Fund accounts for a voter-approved parcel tax on commercial office space of 25,000 square feet or more collected to fund affordable and supportive housing programs; programs that facilitate citizen access to job opportunities in science, technology, engineering and mathematics (S.T.E.M.) and building trades, and strengthen the First Source Hiring Program.

Housing Successor Agency
The Housing Successor Agency Funds account for activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The funds are restricted to housing-related activities for low- and moderate-income needs.

Silicon Valley Community Foundation
The Silicon Valley Community Foundation (SVCF) Fund accounts for gift monies from SVCF for the purpose of incentivizing the affordable housing development within the City. The monies are further restricted to pay a minimum amount of $500,000 for an affordable housing manager position over a period of five years.

Transportation and Infrastructure Programs
State Gas Tax
The State Gas Tax Fund is required by State law to account for California State gasoline taxes.

This tax is primarily distributed to cities based on population and proportion of registered vehicles. Gas tax funds must be spent on public street-related maintenance and capital expenditures.

Measure A

11.1.b
Packet Pg. 137 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget)

SPECIAL REVENUE FUNDS OVERVIEW
The Measure A Fund accounts for a countywide one-half percent sale and use tax to support countywide (San Mateo County) transportation projects and programs.

NPDES
The NPDES Fund accounts for revenues and expenditures from assessments levied on property in the City in compliance with the provision of the National Pollutant Elimination System for prevention of storm water and flood related damage.

Lighting District
The City maintains one Lighting District, the Ravenswood Highway Lighting District, to cover the costs of lighting on and around public streets, highways, parks, and alleys. The Lighting District Fund accounts for all revenues (assessments) and expenditures associated with the District.

Drainage District
The City maintains one Drainage District, the East Palo Alto Maintenance Drainage District, to cover the costs of providing storm drainage and flood control management services for areas related to the district boundary. The Drainage District Fund accounts for all revenues (assessments) and expenditures associated with the District.

Measure W
The Measure W Fund accounts for the City’s allocation of a voter-approved one-half percent (0.5%) sales tax enacted for thirty years to road improvements, transit services, and implementation of the San Mateo County Congestion Relief Plan.

11.1.b
Packet Pg. 138 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) Community
Programs
Housing
Programs
Transportation
and
Infrastructure
Programs
Total
Revenues
Property Tax ‐ ‐   787,930           787,930
Sales Tax ‐ ‐                 ‐ ‐
Utility Users Tax ‐ ‐                 ‐ ‐
Transient Occupancy Tax            138,000           138,000 ‐           276,000 Other State and Local Taxes ‐       1,677,280            2,430,000       4,107,280 Franchise Fees ‐ ‐                 ‐ ‐
Licenses, Fees, and Permits ‐       3,014,140               236,000       3,250,140 Fines and Forfeitures ‐ ‐                 ‐ ‐
Use of Money and Property               37,000           116,000 90,000           243,000 Grants and Intergovernmental         3,723,250       1,000,000 ‐       4,723,250 Charges for Current  Services ‐               2,500 7,500             10,000 Other Miscellaneous            150,000 ‐ ‐           150,000 Total Revenues         4,048,250       5,947,920            3,551,430     13,547,600 Expenditures
City Council ‐ ‐                 ‐ ‐
City Attorney ‐             35,000 ‐             35,000 City Clerk ‐ ‐                 ‐ ‐
City Manager               37,290 ‐ ‐             37,290 Administrative Services            292,620 ‐ ‐           292,620 Finance               52,830               3,000 4,040             59,870 Community Development ‐       6,363,235 ‐       6,363,235 Public Works ‐ ‐            1,317,282       1,317,282 Police            891,420 ‐ ‐           891,420
Non‐Departmental ‐ ‐                 ‐ ‐
Capital/Technology ‐ ‐            1,250,000       1,250,000 Debt Service ‐ ‐                 ‐ ‐
Insurance and Settlements ‐ ‐                 ‐ ‐
Other Non‐Departmental ‐ 10               271,673           271,683 Overhead Allocation               45,280           330,435               343,645           719,360 Total Expenditures         1,319,440       6,731,680            3,186,640     11,237,760 Net Sources / (Uses) 2,728,810                 (783,760)               364,790       2,309,840 Other Financing Sources / (Uses)
Transfers In ‐           462,720               655,640       1,118,360 Transfers Out           (821,140) ‐ ‐         (821,140) Net Operating Transfers           (821,140)           462,720               655,640           297,220 Change in Fund Balance         1,907,670         (321,040)            1,020,430       2,607,060 Other  Changes ‐ ‐                 ‐ ‐
Projected Fund Balance
July 01, 2022 Balance*         1,640,000     17,378,000          13,059,000     32,077,000 June 30, 2023 Balance        3,547,670    17,056,960         14,079,430    34,684,060 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2022-2023 SPECIAL REVENUE FUNDS BUDGET

11.1.b
Packet Pg. 139 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) Public Safety
Grants
F213
Federal and
State Grants
F215
Local
Grants
F230
CYSFF
TOT
F231
Measure    C
F232
ARPA
F290
Total
Community
Programs
Revenues
Property Tax ‐ ‐                ‐ ‐   ‐ ‐ ‐
Sales Tax ‐ ‐                ‐ ‐   ‐ ‐ ‐
Utility Users Tax ‐ ‐                ‐ ‐   ‐ ‐ ‐
Transient Occupancy Tax ‐ ‐                ‐           138,000 ‐ ‐                138,000 Other State and Local Taxes ‐ ‐                ‐ ‐   ‐ ‐ ‐ Franchise Fees ‐ ‐                ‐ ‐   ‐ ‐ ‐
Licenses, Fees, and Permits ‐ ‐                ‐ ‐   ‐ ‐ ‐ Fines and Forfeitures ‐ ‐                ‐ ‐   ‐ ‐ ‐ Use of Money and Property 2,000 ‐               3,000               6,000               1,000 25,000                  37,000 Grants and Intergovernmental              160,000               57,000 ‐ ‐            ‐              3,506,250            3,723,250 Charges for Current  Services ‐ ‐                ‐ ‐   ‐ ‐ ‐ Other Miscellaneous ‐ ‐   150,000 ‐ ‐ ‐                150,000 Total Revenues              162,000               57,000           153,000           144,000               1,000              3,531,250            4,048,250 Expenditures
City Council ‐ ‐                ‐ ‐   ‐ ‐ ‐
City Attorney ‐ ‐                ‐ ‐   ‐ ‐ ‐
City Clerk ‐ ‐                ‐ ‐   ‐ ‐ ‐
City Manager ‐ ‐                ‐ ‐   ‐ 37,290                  37,290 Administrative Services ‐               45,000 ‐ ‐           206,500 41,120                292,620 Finance ‐ ‐                ‐ ‐ 800 52,030                  52,830 Community Development ‐ ‐                ‐ ‐   ‐ ‐ ‐ Public Works ‐ ‐                ‐ ‐   ‐ ‐ ‐
Police              191,420 ‐ ‐              ‐ ‐ 700,000                891,420 Non‐Departmental ‐
Capital/Technology ‐ ‐                ‐ ‐   ‐ ‐ ‐ Debt Service ‐ ‐                ‐ ‐   ‐ ‐ ‐
Insurance and Settlements ‐ ‐                ‐ ‐   ‐ ‐ ‐ Other Non‐Departmental ‐ ‐                ‐ ‐   ‐ ‐ ‐ Overhead Allocation ‐ ‐                ‐             45,280 ‐ ‐                  45,280 Total Expenditures              191,420               45,000 ‐             45,280           207,300                  830,440            1,319,440 Net Sources / (Uses) (29,420)                            12,000          153,000            98,720         (206,300)             2,700,810           2,728,810 Other Financing Sources / (Uses)
Transfers In ‐ ‐                ‐ ‐   ‐ ‐ ‐
Transfers Out ‐ ‐                ‐ ‐   ‐                (821,140)              (821,140) Net Operating Transfers ‐ ‐                ‐ ‐   ‐                (821,140)              (821,140) Change in Fund Balance              (29,420)               12,000           153,000             98,720         (206,300)              1,879,670            1,907,670 Other  Changes ‐ ‐                ‐ ‐   ‐ ‐ ‐
Projected Fund Balance
July 01, 2022 Balance              210,000 ‐           471,000           736,000           223,000 ‐            1,640,000 June 30, 2023 Balance             180,580              12,000          624,000          834,720            16,700             1,879,670           3,547,670

CITY OF EAST PALO ALTO
FY 2022-2023 COMMUNITY PROGRAMS BUDGET

11.1.b
Packet Pg. 140 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) Rent
Stabilization
F204
Housing        In
Lieu
F207
Housing
Assistance
F209
Housing
Commercial
Impact F216
Housing TOT
F218
Measure HH
F219
Housing
Successor
F220
Silicon Valley
Community
F233
Total
Revenues
Property Tax ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
Sales Tax ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
Utility Users Tax ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐ Transient Occupancy Tax ‐ ‐             ‐ ‐             138,000 ‐ ‐ ‐           138,000 Other State and Local Taxes ‐ ‐             ‐ ‐    ‐          1,677,280 ‐ ‐        1,677,280 Franchise Fees ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐ Licenses, Fees, and Permits           538,860 ‐ ‐        2,475,280 ‐ ‐ ‐ ‐        3,014,140 Fines and Forfeitures ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐ Use of Money and Property                6,000               42,000             2,000 ‐               20,000               25,000 20,000 1,000           116,000 Grants and Intergovernmental ‐          1,000,000 ‐ ‐              ‐ ‐         ‐ ‐        1,000,000 Charges for Current  Services ‐ ‐    2,500 ‐ ‐ ‐ ‐              ‐                2,500 Other Miscellaneous ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐ Total Revenues           544,860          1,042,000             4,500        2,475,280             158,000          1,702,280                  20,000                  1,000        5,947,920 Expenditures
City Council ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
City Attorney ‐ ‐             ‐ ‐    ‐ ‐ 35,000 ‐             35,000 City Clerk ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
City Manager ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
Administrative Services ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐ Finance ‐ ‐             ‐ ‐    ‐ 3,000 ‐ ‐                3,000 Community Development           401,070          4,000,000             4,655 ‐ ‐     616,050            1,173,020             168,440        6,363,235 Public Works ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
Police ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
Non‐Departmental
Capital/Technology ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐ Debt Service ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
Insurance and Settlements ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐ Other Non‐Departmental ‐ ‐             ‐ ‐    ‐ 10 ‐ ‐ 10 Overhead Allocation           256,790               30,160             1,595 ‐               27,280 ‐ 14,610 ‐           330,435 Total Expenditures           657,860          4,030,160             6,250 ‐               27,280             619,060            1,222,630             168,440        6,731,680 Net Sources / (Uses) (113,000)                (2,988,160)           (1,750)        2,475,280            130,720         1,083,220          (1,202,630)           (167,440)         (783,760) Other Financing Sources / (Uses)
Transfers In ‐ ‐             ‐ ‐    ‐ ‐                462,720 ‐           462,720 Transfers Out ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐
Net Operating Transfers ‐ ‐             ‐ ‐    ‐ ‐                462,720 ‐           462,720 Change in Fund Balance          (113,000)        (2,988,160)           (1,750)        2,475,280             130,720          1,083,220              (739,910)           (167,440)         (321,040) Other  Changes ‐ ‐             ‐ ‐    ‐ ‐ ‐ ‐ ‐ Projected Fund Balance
July 01, 2022 Balance*           535,000          6,812,000         466,000 ‐          3,312,000          4,779,000            1,407,000               67,000     17,378,000 June 30, 2023 Balance           422,000         3,823,840        464,250        2,475,280         3,442,720         5,862,220               667,090           (100,440)    17,056,960 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2022-2023 HOUSING PROGRAMS BUDGET

11.1.b
Packet Pg. 141 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) State Gas Tax
F201
Measure    A
F202
NPDES
F203
Lighting
District
F221
Drainage District
F222
Measure W
F234
Total
Revenues
Property Tax ‐ ‐            ‐            647,930 140,000 ‐           787,930 Sales Tax ‐ ‐            ‐ ‐        ‐ ‐ ‐
Utility Users Tax ‐ ‐            ‐ ‐        ‐ ‐ ‐ Transient Occupancy Tax ‐ ‐            ‐ ‐        ‐ ‐ ‐ Other State and Local Taxes         1,530,000            600,000 ‐ ‐ ‐             300,000       2,430,000 Franchise Fees ‐ ‐            ‐ ‐        ‐ ‐ ‐
Licenses, Fees, and Permits ‐ ‐        236,000 ‐ ‐ ‐           236,000 Fines and Forfeitures ‐ ‐            ‐ ‐        ‐ ‐ ‐ Use of Money and Property               11,000               36,000             4,000               31,000 4,000 4,000             90,000 Grants and Intergovernmental ‐ ‐            ‐ ‐        ‐ ‐ ‐ Charges for Current  Services ‐ ‐    7,500 ‐ ‐ ‐               7,500 Other Miscellaneous ‐ ‐            ‐ ‐        ‐ ‐ ‐ Total Revenues         1,541,000            636,000        247,500            678,930                  144,000             304,000       3,551,430 Expenditures
City Council ‐ ‐            ‐ ‐        ‐ ‐ ‐
City Attorney ‐ ‐            ‐ ‐        ‐ ‐ ‐
City Clerk ‐ ‐            ‐ ‐        ‐ ‐ ‐
City Manager ‐ ‐            ‐ ‐        ‐ ‐ ‐
Administrative Services ‐ ‐            ‐ ‐        ‐ ‐ ‐ Finance ‐                 1,540             1,000 ‐ ‐               1,500               4,040 Community Development ‐ ‐            ‐ ‐        ‐ ‐ ‐ Public Works            565,830 ‐        285,720            126,560 339,172 ‐       1,317,282 Police ‐ ‐            ‐ ‐        ‐ ‐ ‐
Non‐Departmental ‐ ‐
Capital/Technology            550,000            500,000 ‐ ‐ ‐             200,000       1,250,000 Debt Service ‐ ‐            ‐ ‐        ‐ ‐ ‐
Insurance and Settlements ‐ ‐            ‐ ‐        ‐ ‐ ‐ Other Non‐Departmental               76,810 ‐        188,720                 4,830 1,313 ‐           271,673 Overhead Allocation            129,570                 1,670          75,930               45,690 90,785 ‐           343,645 Total Expenditures         1,322,210            503,210        551,370            177,080                  431,270             201,500       3,186,640 Net Sources / (Uses) 218,790                        132,790      (303,870)            501,850                (287,270)             102,500          364,790 Other Financing Sources / (Uses)
Transfers In               64,500 ‐        303,870 ‐ 287,270 ‐           655,640 Transfers Out ‐ ‐            ‐ ‐        ‐ ‐ ‐
Net Operating Transfers               64,500 ‐        303,870 ‐                  287,270 ‐           655,640 Change in Fund Balance            283,290            132,790 ‐            501,850 ‐             102,500       1,020,430 Other  Changes ‐ ‐            ‐ ‐        ‐ ‐ ‐
Projected Fund Balance
July 01, 2022 Balance*         3,092,000         4,225,000        556,000         4,171,000                  446,000             569,000     13,059,000 June 30, 2023 Balance        3,375,290        4,357,790       556,000        4,672,850                 446,000             671,500    14,079,430 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2022-2023 INFRASTRUCTURE PROGRAMS BUDGET

11.1.b
Packet Pg. 142 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget)

CAPITAL FUNDS OVERVIEW
Capital Funds account for major capital acquisitions, construction activities, and major renovation or replacement of general government assets. Capital Improvement projects accounts in these funds are primarily funded through General Fund transfers, federal and state grants, restricted settlements related to capital, and impact fees charged to developers to mitigate the impact of projects on the City’s infrastructure systems.

Capital Improvement
The Capital Improvement Fund accounts for the primary capital asset study, design, construction and management of the city’s major infrastructure system improvements such as streets, sidewalks, parks, facilities, and storm drains. Major asset construction related to the City’s water infrastructure are accounted in the Water Enterprise Fund.

Parks and Trails Impact
The Park and Trails Impact Fund accounts for fees charged to developers to mitigate the project impact on the City’s parks, trails, and open space infrastructure. Such fees will fund park projects and land acquisitions to provide adequate quality open space – through parks and trails – for the broader public health and quality of life of its citizens and workforce.

Public Facilities Impact
The Park and Trails Impact Fund accounts for fees charged to developers to mitigate the project impact for the provision of adequate public facilities including police department, educational amenities such as libraries, governance buildings, and community service centers.

Transportation Infrastructure Impact
The Park and Trails Impact Fund accounts for fees charged to developers to mitigate the project impact for the provision of public roads and multi-modal streetscape facilities. In addition, constructing sidewalks with street trees, street lighting, benches, and street furniture improves safety, sidewalk space, pedestrian aesthetics, and active transportation.

RBD -I Impact
The RBD-I Impact Fund accounts for fees charged to developers to mitigate the project impact for the provision of adequate storm drainage infrastructure to prevent flooding for development specifically inside the Ravenswood Business District.

RBD -O Impact
The RBD-O Impact Fund accounts for fees charged to developers to mitigate the project impact for the provision of adequate storm drainage infrastructure to prevent flooding for development specifically for all other city areas outside the Ravenswood Business District.

11.1.b
Packet Pg. 143 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) This Page Intentionally Left Blank

11.1.b
Packet Pg. 144 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) Capital
Improvement
F301/303
Parks and
Trails Impact
F305
Public
Facilities
Impact
F306
Transportation
Impact
F307
RBD‐I
Storm Drain
Impact
F308
RBD‐O
Storm Drain
Impact
F309
Total
Revenues
Property Tax ‐ ‐         ‐ ‐ ‐ ‐ ‐
Sales Tax ‐ ‐         ‐ ‐ ‐ ‐ ‐
Utility Users Tax ‐ ‐         ‐ ‐ ‐ ‐ ‐
Transient Occupancy Tax ‐ ‐         ‐ ‐ ‐ ‐ ‐
Other State and Local Taxes ‐ ‐         ‐ ‐ ‐ ‐ ‐ Franchise Fees ‐ ‐         ‐ ‐ ‐ ‐ ‐
Licenses, Fees, and Permits ‐        233,000        405,000          1,754,570              3,850         150,150        2,546,570 Fines and Forfeitures ‐ ‐         ‐ ‐ ‐ ‐ ‐
Use of Money and Property               158,000 ‐ ‐                 2,000 ‐             2,000           162,000 Grants and Intergovernmental ‐ ‐         ‐ ‐ ‐ ‐ ‐ Charges for Current  Services ‐ ‐         ‐ ‐ ‐ ‐ ‐ Other Miscellaneous               300,000 ‐ ‐        ‐ ‐ ‐    300,000 Total Revenues               458,000        233,000        405,000          1,756,570              3,850         152,150        3,008,570 Expenditures
City Council ‐ ‐         ‐ ‐ ‐ ‐ ‐
City Attorney ‐ ‐         ‐ ‐ ‐ ‐ ‐
City Clerk ‐ ‐         ‐ ‐ ‐ ‐ ‐
City Manager                 70,850 ‐ ‐        ‐ ‐ ‐      70,850 Administrative Services ‐ ‐         ‐ ‐ ‐ ‐ ‐
Finance ‐ ‐         ‐ ‐ ‐ ‐ ‐
Community Development ‐ ‐         ‐ ‐ ‐ ‐ ‐
Public Works                 40,000 ‐ ‐        ‐ ‐ ‐      40,000 Police ‐ ‐         ‐ ‐ ‐ ‐ ‐
Non‐Departmental
Capital/Technology               855,410 ‐ ‐        ‐ ‐ ‐    855,410 Debt Service ‐ ‐         ‐ ‐ ‐ ‐ ‐
Insurance and Settlements ‐ ‐         ‐ ‐ ‐ ‐ ‐
Other Non‐Departmental ‐ ‐         ‐ ‐ ‐ ‐ ‐
Overhead Allocation ‐ ‐         ‐ ‐ ‐ ‐ ‐
Total Expenditures               966,260 ‐ ‐        ‐ ‐ ‐    966,260 Net Sources / (Uses)             (508,260)        233,000        405,000         1,756,570              3,850        152,150       2,042,310 Other Financing Sources / (Uses)
Transfers In               700,000 ‐ ‐        ‐ ‐ ‐    700,000 Transfers Out ‐ ‐         ‐ ‐ ‐ ‐ ‐
Net Operating Transfers               700,000 ‐ ‐        ‐ ‐ ‐    700,000 Change in Fund Balance               191,740        233,000        405,000          1,756,570              3,850         152,150        2,742,310 Other  Changes ‐ ‐         ‐ ‐ ‐ ‐ ‐
Projected Fund Balance
July 01, 2022 Balance*            8,111,000           48,000        104,000             213,000              2,000         325,000        8,803,000 June 30, 2023 Balance           8,302,740        281,000        509,000         1,969,570              5,850        477,150     11,545,310 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2022-2023 CAPITAL PROJECT FUNDS BUDGET

11.1.b
Packet Pg. 145 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget)

ENTERPRISE FUNDS OVERVIEW
Enterprise Funds account for City operations financed and operated in a manner similar to a private business enterprise. Government-run enterprises often charge user-fees to support the service or product provided. These activities are not necessarily self-supporting and may rely on general government subsidies to fully fund operations, though it is the intent of the City to fund these services primarily through user charges.

Garbage Collection Fund
Garbage collection services and recycling in East Palo Alto is provided by Recology of San Mateo County. Revenues are primarily derived from solid waste service fees.

The Garbage Collection Fund accounts for activities associated with residential and commercial garbage collection, street sweeping, litter control, and related services. Fees for litter control are collected by the South Bay Waste Management Authority (SBWMA) from both residential and commercial customers.

The City collects residential solid waste collection fees directly from the property tax rolls and remits such fees to Recology of San Mateo County for services provided to those customers.

Water Service Funds
Most of East Palo Alto’s water connections (about 80%) are served by the City’s water system that is operated and leased by Veolia Water North America Operating Services LLC (Veolia). The remaining connections are served by Palo Alto Park Mutual Water Company or O’Connor Tract Co-op Water Company. Veolia supplies the City’s water from the San Francisco Public Utilities Commission.

Water Service Fund accounts for lease operating revenue from Veolia. The fund group includes Capital and Meter surcharges and Water Capacity Fees. The surcharge funds are used for capital improvement costs related to the City's operating obligations under the agreement with Veolia.

The fund group also includes the Capital and Meter Surcharges, Water Capacity Fees.

11.1.b
Packet Pg. 146 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget) Water
Lease
F510
Water Capital
F511
Water Meter
F512
Water Capacity
F513
Sub‐total
Water
Enterprise
Garbage
Service
F520
Total
Revenues
Property Tax ‐ ‐                 ‐ ‐       ‐ ‐ ‐
Sales Tax ‐ ‐                 ‐ ‐       ‐ ‐ ‐
Utility Users Tax ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Transient Occupancy Tax ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Other State and Local Taxes ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Franchise Fees ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Licenses, Fees, and Permits ‐ ‐                 ‐              485,000          485,000 ‐           485,000 Fines and Forfeitures ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Use of Money and Property            482,500               33,000               14,000 5,000          534,500               13,000           547,500 Grants and Intergovernmental ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Charges for Current  Services ‐            500,000            275,000 ‐          775,000         2,850,000       3,625,000 Other Miscellaneous ‐ ‐                 ‐ ‐       ‐            150,000           150,000 Total Revenues            482,500            533,000            289,000              490,000      1,794,500         3,013,000       4,807,500 Expenditures
City Council ‐ ‐                 ‐ ‐       ‐ ‐ ‐
City Attorney ‐ ‐                 ‐ ‐       ‐ ‐ ‐ City Clerk ‐ ‐                 ‐ ‐       ‐ ‐ ‐
City Manager               44,280 ‐ ‐ ‐            44,280 ‐             44,280 Administrative Services ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Finance               20,000 ‐ ‐ ‐            20,000                 1,000             21,000 Community Development ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Public Works            265,150            100,000 ‐ ‐    365,150            200,040           565,190 Police ‐ ‐                 ‐ ‐       ‐ ‐ ‐
Non‐Departmental ‐
Capital/Technology ‐         4,014,000 ‐              456,000      4,470,000 ‐       4,470,000 Debt Service ‐ ‐                 ‐ ‐       ‐ ‐ ‐
Insurance and Settlements ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Other Non‐Departmental               22,000 ‐ ‐ ‐            22,000         2,857,510       2,879,510 Overhead Allocation               70,300 ‐ ‐ ‐            70,300               60,190           130,490 Total Expenditures            421,730         4,114,000 ‐              456,000      4,991,730         3,118,740       8,110,470 Net Sources / (Uses) 60,770                     (3,581,000)            289,000                34,000    (3,197,230)          (105,740)     (3,302,970) Other Financing Sources / (Uses)
Transfers In ‐ ‐                 ‐ ‐       ‐ ‐ ‐
Transfers Out ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Net Operating Transfers ‐ ‐                 ‐ ‐ ‐ ‐ ‐ Change in Fund Balance               60,770       (3,581,000)            289,000                 34,000     (3,197,230)           (105,740)     (3,302,970) Other  Changes ‐ ‐                 ‐ ‐       ‐ ‐ ‐ Projected Fund Balance
July 01, 2022 Balance*         2,542,000         4,357,000         1,731,000         (4,471,000)      4,159,000         1,269,000       5,428,000 June 30, 2023 Balance        2,602,770            776,000        2,020,000         (4,437,000)         961,770        1,163,260      2,125,030 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2022-2023 ENTERPRISE FUNDS BUDGET

11.1.b
Packet Pg. 147 Attachment: Financial Summary - All Funds (2286 : Adoption of Fiscal Year 2022-23 Budget)

TWO-YEAR CAPITAL IMPROVEMENT PROGRAM UPDATE
FY 2022-2023 & 2023-2024
City of East Palo Alto
Public Works Department
Humza Javed, PE
Acting Public Works Director/ City Engineer
Batool Zaro, EIT
Assistant Engineer
Phone: (650)853-3130
Fax: (650)853-3179
Date: June 7th 2022

11.1.c
Packet Pg. 148 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Project Cost Funding Status
ST-14 University Avenue Interchange and POC $14,663,500 Funded ST-01 Mobility Study $250,000 Funded
ST-08 University Avenue Signal Improvements $1,234,400 Funded WD-04B University/Cooley Water Line $4,950,000 Funded
PK-05 Joel Davis Park Restroom $352,000* Funded
FA-15 Cummings Loft Improvements $550,000 Funded
ST-27 University Ave. at Michigan Intersection
Improvements
$400,000 Funded
ST-28 East Bayshore Improvements $200,000 Unfunded
PK-04 MLK JR Park Expansion $1,300,000 Unfunded
PK-10 Bell Street Park Improvements $900,000 Unfunded
FA-02 Community Development Building $20,000 Unfunded
FA-13 City Hall Tenant Improvements $350,000 Unfunded
Fiscal Year 2022-2023 Capital Projects

11.1.c
Packet Pg. 149 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Project Cost Funding Status
ST-25 Bus Stop Shelter Improvements $1,000,000 Funded
PK-18 Railspur Trail Improvements $942,000 Funded
WS-01A Emergency Water Connections – City of Palo Alto
Interconnect and Watermain gap on University Avenue. $450,000 Unfunded SD-08 Trash Capture Device Installation $450,000 Unfunded Fiscal Year 2023-2024 Capital Projects

11.1.c
Packet Pg. 150 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Project Cost Funding Status
ST-28 East Bayshore Improvements $1,000,000 Unfunded
ST-30 Highway Bridge Program Maintenance $300,000 Unfunded ST-29 University Avenue Grand Corridor Complete Streets Project
$15,000,000 Unfunded
ST-31 Pulgas Avenue Beautification Project $100,000 Unfunded PK-04 MLK JR Park Expansion $13,000,000 Unfunded
PK-10 Bell Street Park Improvements $9,000,000 Unfunded ST-32 Runnymede Street Improvements $2,500,000 Unfunded Future/Unfunded Capital Projects

11.1.c
Packet Pg. 151 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

11.1.c
Packet Pg. 152 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

11.1.c
Packet Pg. 153 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

11.1.c
Packet Pg. 154 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Project Costs $ - 250 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 250 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ - 250 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 250 $ - Sources of Funding (Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Measure A 250 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 250 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ - 250 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 250 Prior Year
Appropriations
(Thousand of Dollars)
Streets and Transportation
ST-01 Traffic & Transportation Master Plan/ Mobility Study - IN PROGRESS $ -
Total Estimated Cost
(Thousands of Dollars) $ 250
The Master Plan will include strategies to address issues such as traffic calming in residential zones, parking, sidewalks, signage, bicycle and non-motorized transportation, intersection management, regional vs. local needs, circulation through the Ravenswood Business District and circulation along major corridors.

Portions of the Master Plan have already been completed. In addition to the development of a 2- year Pavement Management Program, the City has undertaken a mobility study to identify short-term, high-priority projects to address throughout East Palo Alto which will provide data sets that are useful for the development of the Traffic & Transportation Master Plan. Additional studies and programs are needed to complete a comprehensive Master Plan that will address all of the City’s transportation needs.

VISTA2035 General Plan Goal - The Traffic & Transportation Master Plan will use the goals outlined in the City’s General Plan to identify specific projects and programs that will address transportation needs and objectives related to efficiency and safety.

Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 155 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Construction $ - 1,234 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 1,234 $ - $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ - 1,234 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 1,234 $ - Sources of Funding
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
HSIP 1,234 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 1,234 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ - 1,234 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 1,234 $ - Streets and Transportation
Total Estimated Cost
(Thousands of Dollars) $ 1,234
ST-08 University Avenue Safety and Traffic Signal Improvements - PLANNED Prior Year
Appropriations
(Thousand of Dollars) $ - This project provides for pavement resurfacing, restriping, upgrading of traffic signals and various other improvements on University Avenue.

The work will also include installation of safety and ADA improvements at various intersections along University Avenue, including improvements to crosswalks and signage. The project will also involve the installation of traffic and bicycle loop detectors at all signalized intersections along University Avenue in the City. Traffic signal modifications will be made at the intersection of University Avenue and Runnymede Street to provide an exclusive left-turn phase. This project is prioritized for FY 2022/23. It will be funded through HSIP funds.

VISTA2035 General Plan Goal ED-1 Grow and stabilize revenue-generating land uses and tools to diversify and expand the City's tax revenue base and provide jobs for local residents. (See Policy 1.10 - Infrastructure improvements supporting higher and better uses.)
Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 156 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Construction $ - 14,664 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 14,664 $ - $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ - 14,664 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 14,664 $ - Sources of Funding
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Federal Earmark 771 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 771 $ - City Match 154 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 154 Measure A Funds 4,893 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 4,893 $ - Stanford Mitigation Grant 1,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 1,000 $ - SMTA 8,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 8,000 $ - Total Funds $ - 14,818 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 14,818 $ - Streets and Transportation
Total Estimated Cost
(Thousands of Dollars) $ 14,664
ST-14 University Avenue Overcrossing and Interchange - IN PROGRESS Prior Year
Appropriations
(Thousand of Dollars) $ - This project will provide for the widening of the University Avenue/US 101 overpass to provide safer pedestrian and bicycle travel and more efficient vehicle travel. The project will include the widening of the overpass bridge and construction of a new diagonal off-ramp from southbound (SB) 101 onto SB University Avenue.

Design and planning work for the project was completed in 2004 in the form of a project Plan, Specifications and Estimate (PS&E). In FY 13/14, the City initiated design/engineering modification to include new improvements to the interchange and to secure the necessary funds. The design of the improvements will be required to meet CALTRANS standards. The work will be performed by private contractors.

11.1.c
Packet Pg. 157 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Design $ 200 - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 200
Construction $ 700 - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 700 $ - Contingency - $ 100 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 100 $ - $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ 1,000 - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - 1,000 $ Sources of Funding
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
ASHC Funds - $ 1,000 $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ 1,000 - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - - $ Streets and Transportation
Total Estimated Cost
(Thousands of Dollars) $ 1,000
ST-25 Bus Stop Shelter Improvements - PLANNED PROJECT
Prior Year
Appropriations
(Thousand of Dollars) $ - This project will include replacing and upgrading the City's bus stop infrastructure. This project includes improvements to the furniture and sidewalks at SamTrans bus stops throughout the City. The city will be replacing eight (8) bus stop shelters and twenty (20) benches to bolster the usage of the transit system. Additional furniture will be placed at bus stops depending on the space available. Furthermore, improvements will be completed on the surrounding sidewalks, curb ramps and infrastructure to enhance accessibility.

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Packet Pg. 158 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Construction $ - 400 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 400 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ - 400 $ - $ - $ - $ - $ - $ - $ - $ - $ $ - 400 $ Sources of Funding
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
MTC 360 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 360
Measure W 40 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 40 $ - $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ - 400 $ - $ - $ - $ - $ - $ - $ - $ - $ $ - 400 $ Streets and Transportation
Total Estimated Cost
(Thousands of Dollars) $ 400
ST-27 University Avenue at Michigan Improvements - FUTURE PROJECT Prior Year
Appropriations
(Thousand of Dollars) $ - The University Avenue and Michigan Avenue intersection is located in the center of the University Avenue Corridor between US 101 and SR 84. The project includes pedestrian safety improvements at this intersection which currently is unsafe and does not meet the Americans with Disability Act (ADA) compliance. Specifically, the project would include ADA compliant bulbouts, median improvement, curb ramps, Rapid Rectangular Flashing beacons (RRFB), striping, and signage.

11.1.c
Packet Pg. 159 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Design $ 200 - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 200 $ - Construction $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 1,000 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ 200 - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 200 $ 1,000 Sources of Funding (Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
To Be Determined - $ 200 $ - $ - $ - $ - $ - $ - $ - $ - $ $ 200 $ - To Be Determined - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 1,000 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ 200 - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 200 Streets and Transportation
Total Estimated Cost
(Thousands of Dollars) $ 1,200
Prior Year
Appropriations
(Thousand of Dollars) $ -
ST-28 East Bayshore Improvements - FUTURE YEAR
Sidewalk, curb, gutter, signage, and striping improvements along East Bayshore from Euclid Avenue to northern city limits.

VISTA 2035 General Plan Goal ED-1 Grow and stabilize revenue-generating land uses and tools to diversify and expand the City's tax revenue base and provide jobs for local residents. (See Policy 1.10 - Infrastructure improvements supporting higher and better uses.)
Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 160 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Study/Design $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 2,000 Construction $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 13,000 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 15,000 Sources of Funding (Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
To Be Determined - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 2,000 To Be Determined - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 13,000 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 15,000 Streets and Transportation
ST-29 University Avenue Grand Corridor Complete Streets Project - FUTURE YEAR Total Estimated Cost
(Thousands of Dollars) $ 15,000
Prior Year
Appropriations
(Thousand of Dollars) $ - Multimodal and complete streets improvements along University Avenue in order to achieve the City's vision according to the City's adopted General Plan.

VISTA 2035 General Plan Goal ED-1 Grow and stabilize revenue-generating land uses and tools to diversify and expand the City's tax revenue base and provide jobs for local residents. (See Policy 1.10 - Infrastructure improvements supporting higher and better uses.)
Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 161 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Project Costs $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 300 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 300 Sources of Funding
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
To Be Determined - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 300 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 300 Streets and Transportation
ST-30 Highway Bridge Program Maintenance - FUTURE YEAR
Total Estimated Cost
(Thousands of Dollars) $ 300
Prior Year
Appropriations
(Thousand of Dollars) $ - Highway bridge maintenance as required by the Caltrans Highway Bridge and Inspection Program.

VISTA2035 General Plan Goal ED - 1 Grow and stabilize revenue-generating land uses and tools to diversify and expand the City's tax revenue base and provide jobs for local residents. (See Policy 1.10 - Infrastructure improvements supporting higher and better uses.)
Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 162 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Project Cost $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 100 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 100 Sources of Funding
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
To Be Determined - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 100 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 100 Streets and Transportation
ST-31 Pulgas Avenue Beautification Project - FUTURE YEAR Total Estimated Cost
(Thousands of Dollars) $ 100
Prior Year
Appropriations
(Thousand of Dollars) $ - Parkway improvements along the east side of Pulgas Avenue between Bay Road and Weeks Street.

VISTA 2035 General Plan Goal ED-1 Grow and stabilize revenue-generating land uses and tools to diversify and expand the City's tax revenue base and provide jobs for local residents. (See Policy 1.10 - Infrastructure improvements supporting higher and better uses.)
Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 163 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

Proposed Capital Improvement Program (CIP) - Fiscal Years 2022-2023 and 2023-2024 Estimated Expenses
(Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
Project Costs $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 2,500 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Budget Request $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 2,500 Sources of Funding (Thousands of Dollars) FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Total
10-Year Future Year
To Be Determined - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ 2,500 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ -
Total Funds $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - Streets and Transportation
ST-32 Runnymede Street Improvements - FUTURE YEAR
Total Estimated Cost
(Thousands of Dollars) $ 2,500
Prior Year
Appropriations
(Thousand of Dollars) $ - Runnymede Street between Pulgas Avenue and the eastern end is in disrepair and will require reconstruction. The project will also include drainage , storm drain, sidewalk, driveway, and Safe Route to School Improvements.

Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 164 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

COMMUNITY FACILITIES
FA-02 Community Development Building - FUTURE YEAR
Total Estimated Cost
(Thousands of Dollars) $ 100
Prior Year
Appropriations
(Thousand of Dollars) $ - This project would improve the physical condition of the Community Development Department building. At this time, the Community Development Building requires improvements to create a functional permit center and conference room. The building will also require a new paint job during the next ten years. The complete scope of improvements will be based on the findings of the Community Facilities Master Plan (FA-01). The total estimated expenses for this project will be adjusted based on the findings listed in the Community Facilities Master Plan (FA-01) once it is complete.

11.1.c
Packet Pg. 165 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

COMMUNITY FACILITIES
Total Estimated Cost
(Thousands of Dollars) $ 1,109
Prior Year
Appropriations
(Thousand of Dollars) $ 109
FA-13 City Hall Tenant Improvements - IN PROGRESS
In 2018, the City of East Palo Alto entered into an agreement with Powell & Partners Architects to develop a facility design for City Hall tenant improvements. Among the scope of work included in this agreement, Powell & Partners Architects has been tasked with improvements to the East Palo Alto Police Evidence Room and the City of East Palo Alto Council Chambers (which includes the scope of the former CIP item FA-08 Council Chamber Accessibility Compliance).

The 350k allocated for FY 22-23 is for improvements to the East Palo Alto Police Evidence Room. The 650k future allocation is planned for the City Council Chamber Improvements.

11.1.c
Packet Pg. 166 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

COMMUNITY FACILITIES
Total Estimated Cost
(Thousands of Dollars) $ 550
FA- 15 - Cummings Loft Improvements Project - FUTURE YEAR Prior Year
Appropriations
(Thousand of Dollars) This project invloves the construction of an incubator space for small businesses in the community.

Several years ago, the City acquired a commercial space (known as Cummings Loft) of nearly 1,000 sq/ft as part of a negotiation with a developer who built a mixed-use project. The intent was to create incubator space for East Palo Alto small businesses and non-profits that were on the verge of being displaced due to gentrification. The developer provided the space in a “cold shell” condition. Therefore, the space needs drywall, plumbing, flooring, paint, and other essential features prior to making the space available for use. To ensure the existing tenants are not impacted by the incubator space, the City also plans to make ingress and egress/security upgrades on the outside of the property.

11.1.c
Packet Pg. 167 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

PARKS & OPEN SPACE
Total Estimated Cost
(Thousands of Dollars) $ 14,300
Prior Year
Appropriations
(Thousand of Dollars) $ -
PK-04 Martin Luther King Jr. Park Expansion & Improvements - FUTURE YEAR This project will involve the expansion and improvement of Martin Luther King Jr. Park to better suit the needs of the community. The Parks Master Plan will assist in determining the scope of the improvements. At this time, staff has determined that the park will require new/upgraded playfields/ courts, upgraded play equipment, an electronic gate, upgraded picnic area, upgraded concession building and security cameras.

Expansion of the park would require a property exchange or purchase of San Mateo County owned land. The additional land would provide an opportunity to install additional recreational facilities. The park expansion would also improve access to the park. However, this item requires action by Council to begin the process for land re-designation. The cost estimate would be updated at that time based on the cost associated with acquiring the property VISTA 2035 General Plan Goal POC-2 Improve and enhance existing parks and trails.

VISTA 2035 General Plan Goal POC-1 Create new parks and open spaces throughout the City. (See policy

1.13 Property acquisition.)
Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 168 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

PARKS & OPEN SPACE
Total Estimated Cost
(Thousands of Dollars) $ 352
PK-05 Joel Davis Park Improvements - FUTURE YEAR
Prior Year
Appropriations
(Thousand of Dollars) $ - This project will implement improvements to Joel Davis Park.The scope of improvements (which may or may not include picnic area, playfield upgrades, etc.) would be determined through the development of the Parks Master Plan (PK-16).

The FY 22-23 funding is for the installation of a public restroom at Joel Davis Park. The availability of a restroom will help support greater use of the park.

The State Fund breakdown consists of :
- General per capita program $177,952
- Urban county per capita $18,641
VISTA 2035 General Plan Goal POC-2 Improve and enhance existing parks and trails.

Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 169 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

PARKS & OPEN SPACE
PK-10 Bell Street Park Improvements - FUTURE YEAR
Total Estimated Cost
(Thousands of Dollars) $ 9,900
Prior Year
Appropriations
(Thousand of Dollars) $ - This project will implement improvements to Bell Street Park. A Master Plan was developed for Bell Street Park which included the construction/ renovation of walking paths, play equipment, tables, a performance center and other improvements. Portions of the Master Plan have already been implemented, such as the construction of the YMCA, the Kaboom playground, and the installation of some walking trails.

The Parks Master Plan will assist in determining the complete scope of improvements. At this time, staff has determined that the park will need new park lighting, a concrete stage, new restrooms, security cameras, security fencing, new bathrooms, new play equipment, new picnic area and upgraded playfields.

VISTA 2035 General Plan Goal POC-2 Improve and enhance existing parks and trails.

Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 170 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

PARKS & OPEN SPACE
Total Estimated Cost
(Thousands of Dollars) $ 942
PK-18 Railspur Trail Improvements - PLANNED
Theis project includes enhancing the Railspur Trail to be better used as a shared path, with improved striping and signage to meet current Class I facility standards. New landscaping will be added and improvements to the existing landscape will be made. The lighting will be replaced and upgraded and amenities like benches will be added. The asphalt will also be replaced and graded better.

VISTA 2035 General Plan Goal POC-2 Improve and enhance existing parks and trails.

Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 171 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

STORM DRAIN
SD-08 Trash Capture Device Installation - FUTURE YEAR
Total Estimated Cost
(Thousands of Dollars) $ 900
As part of the City's Municipal Regional Stormwater Permit requirements, the City must move towards 100% trash capture of storm water runoff by the year 2025 with requirements for June 2022 to reach 80% and June 2023 to reach 90% compliance. The City is presently at 67% full trash capture without “credits” for bag ban, cleanups, etc. which phase-out in 2022/2023. This project proposes to install additional trash capture devices at drainage inlets over the next several years in order to meet the requirements of the City's Municipal Regional Stormwater Permit. The O’Connor Pump Station Full Trash Capture Device was installed, aiding the City in meeting 67% compliance. several are still needed to meet the City's goal of 100% trash capture of storm water runoff.

The estimate cost to install trash capture devices for FY 23/24 is 450k. The areas planned for FY 22-23 include Area A, Area B, and San Francisquito Creek location #2. The estimate cost for FY 24/25 is 450k and work is planned for Area C, Area E, Area H, and Area I. These funds will potentially be reimbured through NPDES funds, Measure M funds, and CalTrans funds. See Attachment 1 for the storm basin map detailing the location of each area.

VISTA 2035 General Plan Goal ISF-1 Manage stormwater safely, efficiently, and sustainably. (See Policy 1.8 Stormwater best practices.)
Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 172 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

WATER SUPPLY
This project would establish an emergency intertie with the City of Palo Alto’s water system. Establishment of interties will allow the City to obtain emergency water in case the City’s connection with the Hetch Hetchy Aqueduct is severed.

Currently, the City has no emergency source of water if the City’s connection with the Hetch Hetchy Aqueduct is severed.

VISTA 2035 General Plan Goal ISF-2 Ensure a sustainable, clean, long-term water supply.

Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 173 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :

WATER DISTRIBUTION
This project includes the installation of a twelve (12) inch water transmission line at the intersection of University Avenue and Cooley Avenue and along University Avenue and Cooley Avenue. The purpose of this project is to enhance water distribution throughout East Palo Alto. The line will draw additional water capacity from the North-end of East Palo Alto and distribute additional water capacity Citywide. The design for this project is complete.

VISTA 2035 General Plan Goal ISF-2 Ensure a sustainable, clean, long-term water supply.

Proposed CIP - FY22-23 and FY23-24

11.1.c
Packet Pg. 174 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 :
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East Palo Alto - Storm Drain Basins
F
CSG Consultants, Inc.

Legend
! Outfalls
City Limit
Storm Drain Basins
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O'Connor Pump Station (Includes Runnymede Drainage Basin) San Francisquito #1
San Francisquito #2
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San Francisquito #2
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Text
Attachment 1
Runnymede

11.1.c
Packet Pg. 175 Attachment: FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 : Adoption of Fiscal Year 2022-23 Budget) Resolution No. XX-2022 1 of 2
RESOLUTION NO. XX – 2022

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

ADOPTING A TWO-YEAR CAPITAL IMPROVEMENT PROGRAM UPDATE AND BUDGET FOR FISCAL YEAR 2022-2023 AND 2023-2024
WHEREAS, adopting a Two-Year Capital Improvement Program (CIP) update will facilitate the construction of capital projects which advance the City’s General Plan Vista 2035 and City Council’s Strategic Goals; and
WHEREAS, the City’s existing Adopted Ten-Year Capital Improvement Program and Capital Budget was approved by City Council on September 15th 2020; and WHEREAS, projects in the two-year CIP update were reviewed and discussed at the March 16, 2022 Public Works Transportation Commission (PWTC) meeting, as well as the April 11, 2022 Planning Commission meeting for conformance with the General Plan goals and policies; and WHEREAS, on May 26, 2022, staff presented to the City Council a final draft of the Proposed Two-Year Capital Improvement Program update and Budget for Fiscal Year 2022-2023 and 2023- 2024 for review and comment during a special session.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY adopts the Two-Year Capital Improvement Program (CIP) update and Fiscal Year 2022-2023 and 2023-2024 Capital Budget, as set forth in Exhibit A to this Resolution, attached and incorporated by reference.

PASSED AND ADOPTED this 7
th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

11.1.d
Packet Pg. 176 Attachment: Resolution for FY 2022-23 AND FY 2023-24 Two-year Capital Improvement Program Update (2286 : Adoption of Fiscal Year 2022-23

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Tomohito Oku, Finance Director
Bo-Kyoung Kim, Financial Services Manager
SUBJECT: Establishing the Fiscal Year 2022-23 Appropriation Limit Recommendation
Adopt a Resolution establishing the FY 2022-23 Appropriation Limit of $37,844,018.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority #2: Enhance Economic Vitality
Priority #3: Increase Organization Effectiveness and Efficiency Background
In November 1979, the voters of the State of California approved Proposition 4, commonly known as the Gann Initiative. The proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue that can be spent by all entities of government.

Further, in 1990, the voters of the State of California passed Proposition 111 providing adjustment formulas more responsive to local growth issues, as well as, requirement for an annual review of the Gann Limit calculations which is performed by the City’s auditors each fiscal year. Staff determines the appropriation limit associated with each fiscal year budget.

The City Council is required to adopt a limit on appropriations subject to a formula outlined in the State Constitution Article XIIIB.

Analysis
The attached calculation of the appropriation limit follows the formula established in the California Constitution. Not all revenues are restricted by the limit; only those that are referred to as “proceeds of taxes.”
Total revenues are classified either as “proceeds” or “non-proceeds” of taxes. In FY 2022-23,

11.2 Packet Pg. 177
budgeted revenue sources total $53,848,590 (See Attachment 2: Schedule 1 and Schedule 2).

Total revenue sources are reduced by non-proceeds of taxes and other qualifying exclusions in the amount of $27,307,101; leaving net revenue sources subject to limitation of $29,016,773 (See Attachment 2: Schedule 1).

GANN Limit law provides some choice in the factors applied to determine the limit each fiscal year. The basic determinant factors are (1) the change in the cost of living, and (2) the change in population. To determine the change in the cost of living, the City may choose from either:
a) the change in California per capita income as determined by the California Department of Finance, or b) the percentage change in local assessment tax roll from the prior year attributable to the addition of non-residential new construction as calculated by the San Mateo County Assessor’s Office. To determine the change in population the City may choose either a) the percentage change within the City or b) the percentage change within San Mateo County as determined by the California Department of Finance. For each factor, staff recommends the choice resulting in the maximum increase allowable.

Due to COVID-19, the County of San Mateo County Assessor’s Office did not provide the local factor data to compare which cost of living factor provides the best growth in the total appropriation limit. Staff estimates this factor very likely would not have been chosen given both the lack of commercial development in East Palo Alto in the past year and the spike in California per capita income.

The FY 2022-23 appropriation limit is determined by taking the prior year adjustment ending limit of $35,514,101 and multiplying by the per capita income factor and the County population rate factor. The appropriation limit is increased by the factored decrease in population in the County of San Mateo (-0.92%), and by the factored increase in per capita personal income (7.55%). The FY 2022-23 calculated appropriation limit applying such factors is $37,844,018 (See Attachment 2: Schedule 3).

The City’s calculated revenue classified as “subject to limitation” in the amount of $29,016,773 is subtracted from the appropriation limit of $37,844,018 leaving a remaining appropriations capacity of $8,827,244 or 23.33%. (See Attachment 2)
In conclusion, the City’s 2022-23 budget appropriations that are subject to limitation are under the maximum tax limitation, and thus in compliance with Article XIIIB of the State Constitution.

Fiscal Impact
The City’s appropriations subject to limitation are $8,827,244 or 23.33%, below the FY 2022- 23 Appropriation Limit allowed by Statute, there is no resulting fiscal impact.

Public Notice
Government Code Section 7910 requires the District to establish, by resolution, its appropriations limit pursuant to Article XIIIB and documentation used in the determination of the Fiscal Year 2023 appropriations limit has been available to the public for at least fifteen days prior to the date of this resolution. The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall on May 27, 2022 and making the agenda and report available at the City’s website and at the San

11.2 Packet Pg. 178
Mateo Co. Library located at 2415 University.

The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

Attachments

1. Resolution

2. Exhibit A to Resolution

11.2 Packet Pg. 179
RESOLUTION NO.______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO ESTABLISHING AN APPROPRIATION LIMIT OF $37,844,018
FOR FISCAL YEAR 2022-23
WHEREAS, the City is required to adopt a limit on appropriations subject to a formula outlined in Article XIIIB of the California Constitution; and WHEREAS, the California Constitution also requires a method of inflation be chosen; and
WHEREAS, due to COVID-19 Pandemic the cost-of-living factor related to growth in non-residential assessment valuation calculated by the San Mateo County Assessor’s Office was not available; and
WHEREAS, the City of East Palo Alto elects to use the following factors relevant to the calculation of the Appropriation Limit for FY 2022-23:
• Per Capita Personal Income Change: +7.55% (Plus Seven Point Five Five Percent) • County of San Mateo Population Adjustment: -0.92% (Minus Point Ninety-Two Percent) WHEREAS, a resolution establishing the annual appropriation limit must be adopted at a regularly scheduled meeting or noticed special meeting of the City Council; and
WHEREAS, the City Council held public hearings and adopted the Fiscal Year 2022-23 budget on June 7, 2022, and appropriations therein were determined within the calculated appropriation limit; and
WHEREAS, a determination of the FY 2022-23 Appropriations Limit has been made available to the public fifteen days prior to the meeting held herein;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO:

1. The Appropriation Limit for Fiscal Year 2022-23 shall be and is hereby set at $37,844,018 pursuant to Exhibit A attached hereto and incorporated herein by this reference.

2. The Appropriation Limit of $37,844,018 exceeds the Appropriations Subject to Limitation calculated in the amount of $29,016,773 by $8,827,244. Therefore, the City of East Palo Alto complies with the provisions of Article XIII B of the State Constitution.

11.2.a
Packet Pg. 180 Attachment: Resolution (2288 : Establishing the Fiscal Year 2022-23 Appropriation Limit) PASSED AND ADOPTED this 7
th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

11.2.a
Packet Pg. 181 Attachment: Resolution (2288 : Establishing the Fiscal Year 2022-23 Appropriation Limit)

11.2.a
Packet Pg. 182 Attachment: Resolution (2288 : Establishing the Fiscal Year 2022-23 Appropriation Limit)

CITY OF EAST PALO ALTO
Appropriation Limitation Calculation
2022-23

EXHIBIT A
Executive Summary
An annual calculation of the City's appropriation limitation is required by Article XIIIB of the California Constitution. City expenditures may increase only in relation to changes in per capita income or growth in non-residential assessment valuation, whichever is greater, and the population change for the City or County, whichever is greater.

I. Determination of Appropriation Limit:
2022-23 Appropriation Limit (Schedule 3) $ 37,844,018
II. Determination of Appropriations Subject to Limitation:
2022-23 Revenue Sources for Appropriations (Schedule 2) $ 56,323,874 Deductions of Exempt Revenues and Qualified Capital (Schedule 1) (27,307,101) 2022-23 Appropriations Subject to Limitation (Schedule 1) $ 29,016,773 III. Amount Under/(Over) Appropriation Limit (I-II) $ 8,827,244 IV. Remaining Capacity as a Percent of FY 2022-23 Limit 23.33% The City's 2022-23 proposed budget appropriations that are subject to limitation are $8,827,244 million under the limitation as shown below:

11.2.b
Packet Pg. 183 Attachment: Exhibit A to Resolution (2288 : Establishing the Fiscal Year 2022-23 Appropriation Limit)

CITY OF EAST PALO ALTO

CALCULATION OF APPROPRIATIONS SUBJECT TO LIMITATION
2022-23
SCHEDULE 1
Total Revenue Sources For Appropriations (Schedule 2) $ 56,323,874 Exclusions:

Non-Proceeds of Taxes (Schedule 2) (27,307,101)
Qualifying Capital Outlay -
Total Exclusions (27,307,101)
Net Revenue Sources Subject to Limitation $ 29,016,773

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Packet Pg. 184 Attachment: Exhibit A to Resolution (2288 : Establishing the Fiscal Year 2022-23 Appropriation Limit)

CITY OF EAST PALO ALTO

SUMMARY OF REVENUES-BY CATEGORY
2022-23
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Taxes
Property Taxes $ 16,510,856 $ 5,496,425 $ 22,007,281
Sales and Use Tax 5,845,000 - 5,845,000
Utility Users Tax 1,702,684 - 1,702,684
Transient Occupancy Tax 1,376,000 - 1,376,000
Other Taxes 3,102,530 2,430,000 5,532,530
$ 28,537,070 $ 7,926,425 $ 36,463,495
Franchise Fees
Franchise Fees $ - $ 1,196,000 $ 1,196,000
Licenses, Fees, and Permits
Building and Other Permits $ - $ 430,300 430,300
Rent Stabilization Fees - 536,360 536,360
NPDES - 144,000 144,000
CCAG Measure M Vehicle Fee - 92,000 92,000
Development Impact Fees - 5,506,852 5,506,852
$ - $ 6,709,512 $ 6,709,512
Fines and Forfeitures
Vehicle Code and Parking Fines $ - $ 180,000 $ 180,000
Other Fees and Fines - - -
$ - $ 180,000 $ 180,000
Grants and Intergovernmental
California SLESF $ - $ 160,000 $ 160,000
California Department of Aging - - -
California SB2 - 57,000 $ 57,000
CalHome - 1,000,000 $ 1,000,000
ARPA Grant - 3,506,250 $ 3,506,250
Subventions and Reimbursements 42,500 103,000 145,500
Miscellaneous Grants - 450,000 450,000
$ 42,500 $ 5,276,250 $ 5,318,750
Charges for Current Services
Solid Waste and Recycling Charges $ - $ 2,850,000 $ 2,850,000 Water Capital Replacement Fees - 787,500 787,500
Building Charges - 411,000 411,000
Engineering Charges - 580,117 580,117
Planning Charges - 360,000 360,000
Police Services - - -
Miscellaneous Charges 6,000 - 6,000
$ 6,000 $ 4,988,617 $ 4,994,617
1 of 2 Pages

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Packet Pg. 185 Attachment: Exhibit A to Resolution (2288 : Establishing the Fiscal Year 2022-23 Appropriation Limit)

CITY OF EAST PALO ALTO

SUMMARY OF REVENUES-BY CATEGORY
2022-23
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Use of Money and Property (ex. Interest)
Facility Use and Leases - 454,500 454,500
Penalties - 20,000 20,000
$ - $ 474,500 $ 474,500
Other Miscellaneous
Solid Waste Reimbursements $ - $ 150,000 $ 150,000
Loan Proceeds and Reimbursements - - -
Other - - -
$ - $ 150,000 $ 150,000
Operating Budget Subtotal $ 28,585,570 $ 26,901,304 $ 55,486,874 Percent of Total 51.52% 48.48% 100.00%
Interest Allocation $ 431,203 $ 405,797 $ 837,000
TOTAL $ 29,016,773 $ 27,307,101 $ 56,323,874
2 of 2 Pages

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Packet Pg. 186 Attachment: Exhibit A to Resolution (2288 : Establishing the Fiscal Year 2022-23 Appropriation Limit)

CITY OF EAST PALO ALTO

APPROPRIATIONS LIMIT COMPUTATION

CUMULATIVE GROWTH RATE
2022-23
Schedule 3

ASSESSED

PER CAPITA VALUATION

FISCAL BEGINNING POPULATION INCOME CHANGE ENDING

YEAR LIMIT FACTOR FACTOR FACTOR LIMIT
2007-08 15,463,621 1.0139 1.0442 N/A 16,371,558
2008-09 16,371,558 1.0126 N/A 1.0920 18,103,000
2009-10 18,103,000 1.0121 N/A 1.1120 20,374,116
2010-11 20,374,116 1.0117 N/A 1.0080 20,777,393
2011-12 20,777,393 1.0080 N/A 0.9810 20,545,684
2012-13 20,545,684 1.0098 1.0377 N/A 21,529,195
2013-14 21,529,194 1.0109 1.0512 N/A 22,878,172
2014-15 22,878,172 1.0117 N/A 1.1160 25,830,765
2015-16 25,830,765 1.0100 1.0382 N/A 27,085,675
2016-17 27,085,675 1.0091 1.0537 N/A 28,799,891
2017-18 28,799,891 1.0056 1.0369 N/A 30,029,838
2018-19 30,029,838 1.0065 N/A 1.0379 31,369,805
2019-20 31,369,805 1.0028 1.0385 N/A 32,668,760
2020-21 32,668,760 0.9987 1.0373 N/A 33,843,251
2021-22 33,843,251 0.9925 1.0573 N/A 35,514,101
2022-23 35,514,101 0.9908 1.0755 N/A 37,844,018
Sources:State Dept.of Finance, Budget Resolutions & Prior Year Appropriation Limits, San Mateo County Assessor's Office N/A = Not applicable; calculation formula uses the higher of per capita or assessed valuation factors multiplied by population factor.

Notes:

Population factor: San Mateo County, ((-0.92+100)/100 = 0.9908) Per Capita Income Factor, ((7.55+100)/100 = 1.0755)
Total Change Factor (0.9908 x 1.0755) = 1.0656

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Packet Pg. 187 Attachment: Exhibit A to Resolution (2288 : Establishing the Fiscal Year 2022-23 Appropriation Limit)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Karen Camacho, Housing Project Manager
Rachel Horst, Housing and Economic Development Manager
SUBJECT: Inclusionary Housing In-Lieu Fee Update for FY 2022-23 Recommendation
It is recommended that the City Council adopt a Resolution establishing Inclusionary In-Lieu Fees for Ownership/For-Sale and Rental Units for Fiscal Year 2022-23.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 2: Enhance Economic Vitality
Background
On November 19, 2019, the City Council adopted Ordinance No. 425 – Inclusionary Housing Ordinance (IHO), adding Chapter 18.37 to the City of East Palo Alto Development Code. The IHO applies to all new residential development and requires developments of five (5) or more units to provide 20% of the total units at specified levels of affordability.1 The IHO also created an In-Lieu Fee requirement, which applies in the following scenarios:
• Developments of fewer than five units
• Developments where the inclusionary requirement results in a fraction of a unit (e.g., in a 7-unit development, the inclusionary requirement would result in 1.4 units, with the fractional unit of .4 requiring an In-Lieu Fee payment) • Developments where an In-Lieu Fee payment is provided as the Alternative Compliance Option, as approved by City Council (Alternative Compliance Options have a 25% inclusionary requirement)
Section 18.37.050 provides for In-Lieu Fees for both rental and for-sale units, which are 1 The inclusionary requirement for for-sale residential developments is to provide: 50% of units priced affordable to households at or below 80% area median income (AMI) and 50% of units priced affordable to households at or below 120% AMI. The inclusionary requirement for rental developments is to provide: 25% of units at an affordable rent to households at 35% AMI; 50% of units at an affordable rent to households at 50% AMI, and 25% of units at an affordable rent to households at 60% AMI.

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adopted by the City Council by resolution each year to take effect on or after July 1 of that year. The purpose of the In-Lieu Fee is to fulfill the developer’s obligation to produce affordable units by providing the City with funds for 1.) future development of affordable rental housing or

2.) future subsidy to moderate-income homebuyers.2
An analysis by David Rosen & Associates (DRA) is included in the Inclusionary Housing Guidelines (“Guidelines”) as Chapter 3C, as adopted by the City Council on October 20, 2020, by Resolution No. 141-220. This sets the methodology for calculating Inclusionary In-Lieu Fees and subsequent increases.3 The first Inclusionary In-Lieu Fees were adopted by the City Council on October 20, 2020, by this same resolution.

The data used to calculate the Inclusionary In-Lieu Fees is not released in time to include them the City’s Master Fee Schedule update each April. For this reason, Inclusionary In-Lieu Fees must be adopted separately each year.

The current In-Lieu Fee for an Ownership/For-Sale unit is $197,880 and the In-Lieu Fee for a Rental unit is $255,000. The purpose of this staff report is to update the Inclusionary In-Lieu Fees for both Ownership/For-Sale and Rental and to recommend City Council adoption of the fees for Fiscal Year 2022-23.

Analysis
Inclusionary Housing Guidelines and In-Lieu Fees
The IHO provides direction on the methodology by which In- Lieu fees will be calculated. The actual In-Lieu Fee calculations are provided in detail in the Guidelines, the companion document to the IHO that clarifies and elaborates upon the IHO requirements. The Guidelines are intended to assist potential developers and stakeholders by outlining instructions and further clarifying key components of the IHO.

The City Council reviewed and adopted the first edition of the Guidelines. Thereafter, the City Manager reviews and approves any changes or updates. It should be noted that if there are any inconsistencies between the Guidelines and the IHO, the IHO takes precedent. The full set of the Guidelines is provided on the City’s website on the Inclusionary Housing page.4 The Inclusionary In-Lieu Fees are updated by Housing Division staff on an annual basis using the methodology provided in the Guidelines. This methodology, including the process for updating the In-Lieu Fees, was outlined in detail in the staff report from October 20, 2020.5 Each year thereafter, the City Council adopts the updated Inclusionary In-Lieu Fees at a public hearing, and they subsequently are published on the City’s website.

Ownership/For-Sale In-Lieu Fee
2 As a reminder, a developer must request approval from the City Council to pursue the In-Lieu Fee payment as an Alternative Compliance Option. Development projects for which an Alternative Compliance Option is requested must therefore be approved by the City Council.
3 The updated chapters for the For-Sale In-Lieu Fee and the Rental In-Lieu Fee methodologies were posted on the City’s inclusionary housing webpage at: https://www.cityofepa.org/housing/page/inclusionary-housing. 4 Please see: https://www.cityofepa.org/housing/page/inclusionary-housing 5 Please see:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1285&MediaPosition=9022.756&ID=1435&CssClas s=

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The Ownership/For-Sale In-Lieu Fee represents the gap between the market sales price of a “prototypical” unit in East Palo Alto and the sales price affordable to a household at or below 80% or 120% AMI. The affordable housing cost is defined as 30% of the maximum household income at the specified income level (adjusted by household size).

An illustrative calculation of the Ownership/For-Sale In-Lieu Fee is provided in Chapter 2A of the Guidelines. The DRA memo, dated April 27, 2020 and provided in the Guidelines as Chapter 2C, further discusses the For-Sale In-Lieu Fee methodology in detail.

The In-Lieu Fee calculation includes the following baseline assumptions: 1.) a household size of 2.5, which reflects an average condominium size using the occupancy standard of number of bedrooms plus one; and 2.) a maximum household income of 100% AMI, which is the average of the two affordability levels required by the IHO.

The affordable sales price is a multi-step calculation requiring updated inputs on an annual basis. The initial calculation of the affordable housing cost for a maximum household income at 100% AMI is made separately for household sizes of 2 and 3 persons. To arrive at a single affordable sales price for a 2.5-person household at 100% AMI, a weighted average based on the distribution of prototypical condominium types (1- and 2-bedroom units) is calculated from the 2- and 3-person household AMI.

From this initial income calculation, deductions are made to estimate total monthly housing costs: utilities, HOA fees, insurance, and property taxes. This adjusted affordable housing cost is used to calculate the maximum supportable monthly mortgage amount, assuming a down payment of 5% and a fixed-rate, 30-year amortizing mortgage, with the interest rate taken from the Freddie Mac Mortgage Market Survey in the first week of January of the calendar year.

The market sales price is calculated as a weighted average of condominium sales in East Palo Alto over the previous 3-year period. The difference between the affordable sales price and the market sales price is the In-Lieu Fee.

The updated Ownership/For-Sale In-Lieu Fee is summarized below:

Ownership/For-Sale Housing In-Lieu Fee Calculation*
Affordable Price for 100% AMI Household $754,000
Market Sales Price (3-Yr SMC Association
of Realtors Average)
$568,000
Gap for In-Lieu Fee (100% AMI) $186,000 per unit
2% Increase Due to Delay $4,000 per unit
Ownership/For-Sale In-Lieu Fee $190,000 per unit
*Figures are rounded to the nearest thousandth in this chart.

Rental In-Lieu Fee
As discussed in the DRA memo, provided in the Guidelines as Chapter 2C, the In-Lieu Fee estimates for rental housing represent the financing gap required to develop housing affordable to households at 35% AMI, 50% AMI, and 60% AMI, in the percentages required by the IHO.

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The development and operating cost assumptions were used to calculate the gap for a “prototypical” multifamily housing development in East Palo Alto are based on a review of historical project costs and an analysis of 2017-19 applications for the Low Income Housing Tax Credit program. These can be found in detail in Table A-3 of the DRA memo in Chapter 2C of the Guidelines. Note that the prototypes include housing developments with structured and surface parking; the final In-Lieu Fee reflects a structured parking development.

The annual gross rent calculation was based on 30% of the maximum household income at specified AMI levels and household size, less utilities. The final gap calculation, shown in Table A-10 of the DRA memo, also assumes tax credit equity from 4% tax-exempt bonds.

The Rental In-Lieu Fee is adjusted annually by staff based on the percentage change in new home prices in San Mateo County, as published in the Northern California Real Estate Construction Report by the Real Estate Research Council of Southern California at California State Polytechnic University, Pomona. This report requires an annual membership.

Housing Division staff based the Rental In-Lieu Fee adjustment on the Fourth Quarter Real Estate and Construction Report of the previous year. The calculation of the updated In-Lieu Fee is shown below; the calculation of the original Rental In-Lieu Fee is provided in Chapters 2B and 2C of the Guidelines.

The Rental In-Lieu Fee for 2022-23 is summarized below:

Rental Housing In-Lieu Fee Calculation*
FY 2021-22 Rental In-Lieu Fee $255,000
New Home Prices Fourth Quarter 2020 $1,429,009
New Home Prices Fourth Quarter 2021 $1,452,688
Difference $23,679
Percentage Change 1.657%
2022 Rental In-Lieu Fee (1.657% increase) $259,000 per unit *Figures are rounded in this chart.

Please note that the notice for this public hearing incorrectly cited $259,255 as the increased In-Lieu Fee amount; this number should be rounded to $259,000.

In-Lieu Fee Payments
All In-Lieu Fee payments will be calculated by Housing Division staff and must be paid by the developer prior to issuance of a Building Permit for any unit in the development. If there is a requirement to pay an In-Lieu Fee in addition to building units or any other combination of compliance options, then the requirement will be noted in the Inclusionary Housing Agreement, a document that lays out all inclusionary obligations and is recorded against all units in the development.

To date, no developer has paid the In-Lieu Fee under the Inclusionary Housing Ordinance.

Most entitled projects have chosen to comply with the IHO by building on-site units or another Alternative Compliance Option.

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According to the IHO, In-Lieu Fees collected by the City will be placed into a fund that will support ownership and rental affordable housing in East Palo Alto.

Next Steps
If City Council approves the current In-Lieu Fees, effective through FY 2022-2023, staff will publish them on the City’s website. If approved, in summary, the In-Lieu Fees will change from the current to the following:

FY21-22 FY 22-23
For-Sale $197,880 $190,000
Rental $255,000 $259,000
The effective date for the In-Lieu Fees is July 8, 2022.

Fiscal Impact
There is no immediate fiscal impact associated with the actions in this staff report. Future residential developments that are subject to the IHO will require the payment of In-Lieu Fees if they fit one of the descriptions provided above. In-Lieu Fee payments will not impact the General Fund but will be set aside as affordable housing funds.

Given the current housing pipeline, it is not anticipated that significant In-Lieu Fee revenue will be generated in FY 2022-23. However, there are some small projects that have been entitled since the In-Lieu Fees came into effect. If these projects proceed to the Building permit stage, the City will receive a fee payment. If needed, staff will provide an update on projected revenue for FY 2022-23.

Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available on the City’s website. Public notice was also provided in the May 27, 2022 Palo Alto Daily News.

Additionally, updated Chapters 2A and 2B of the Inclusionary Housing Guidelines detailing the fee calculations were posted as drafts on the City’s website.

Attachments

1. Resolution

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1 of 3
RESOLUTION NO. XX -2022

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
ADOPTING INCLUSIONARY HOUSING IN-LIEU FEES THROUGH FISCAL YEAR 2022-23 WHEREAS, on November 19, 2019, the City Council adopted Ordinance No. 425, lnclusionary Housing Ordinance ("Ordinance"), adding Chapter 18.37 to the East Palo Alto Municipal Code; and
WHEREAS, the Ordinance requires that 20% of all units in new market-rate residential developments be affordable to 35% AMI income households, very low-income, low-income, median- income and moderate-income households; and
WHEREAS, the Ordinance requires, under specified conditions, the payment of a fee to the City in-lieu of constructing rental or for-sale inclusionary units within a residential development ("In-Lieu Fees"); and
WHEREAS, the Ordinance provides that these In-Lieu Fees shall be established and amended from time-to-time by resolution of the City Council; and WHEREAS, the Ordinance further provides that In-Lieu Fee payments shall be placed into an affordable housing fund and shall be expended exclusively to provide rental housing affordable to low income households (or below), ownership housing affordable to moderateincome households (or below), and any special needs populations in the City, consistent with the goals and policies contained in the City's Housing Element, and for administration and compliance monitoring of the lnclusionary Housing program, as approved by the City Council; and
WHEREAS, on October 20, 2020, the City Council held a properly noticed public hearing to adopt the In-Lieu Fee methodology as provided in a report commissioned by the City from David Rosen & Associates and set the In-Lieu Fees through Fiscal Year 2021-22; and WHEREAS, these In-Lieu Fees shall be updated on an annual basis as part of the City's annual budget process, according to the methodology outlined in the Report and in the Guidelines and adopted by City Council resolution.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY adopts the lnclusionary In-Lieu Fees for Ownership/For-Sale and Rental Units commencing July 8, 2022 through the 2022-23 Fiscal Year, as shown in Exhibit A, attached and incorporated by reference.

PASSED AND ADOPTED this 7th day of June 2022, by the following vote:

11.3.a
Packet Pg. 193 Attachment: Resolution (2292 : Inclusionary Housing In-Lieu Fee Update for FY 2022-23) 2 of 3
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED: ________________________
Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

11.3.a
Packet Pg. 194 Attachment: Resolution (2292 : Inclusionary Housing In-Lieu Fee Update for FY 2022-23) 3 of 3
Exhibit A
lnclusionary In-Lieu Fees
Ownership/For-Sale In-Lieu Fee $190,000 per Unit
Rental In-Lieu Fee $259,000 per Unit
The lnclusionary In-Lieu Fees shall be updated by resolution by the City Council on an annual basis as part of the City's budgeting process and published on the City of East Palo Alto website.

11.3.a
Packet Pg. 195 Attachment: Resolution (2292 : Inclusionary Housing In-Lieu Fee Update for FY 2022-23)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Patrick Heisinger, Interim City Manager
SUBJECT: Municipal Service Review for the City of East Palo Alto, the East Palo Alto Sanitary District, and the West Bay Sanitary District
Recommendation
By motion, direct the Mayor to send the attached letter (Attachment 1) to the San Mateo Local Agency Formation Commission (SMLAFCo) to serve as the City’s official response to the Final Municipal Service Review (MSR) for the City of East Palo Alto (City), the East Palo Alto Sanitary District (EPASD), and the West Bay Sanitary District (West Bay).

Background
On April 5, 2022, SMLAFCo released the circulation Draft MSR and on April 19, the Council received a presentation on the MSR from SMLAFCo Executive Officer Rob Bartoli. On May 3, 2022, the City Council directed the Interim City Manager to send a letter (Attachment 2) to the San Mateo Local Agency Formation Commission (SMLAFCo) to serve as the City’s official response to the Draft Municipal Service Review (MSR) for the City of East Palo Alto (City), the East Palo Alto Sanitary District (EPASD), and the West Bay Sanitary District (West Bay). The letter was forwarded to SMLAFCo on May 4, 2022.

It is anticipated that on June 6 2022, SMLAFCo will publish the final MSR, which will include responses to public comment and a set of determinations/recommendations for each agency concerning operations, finance, transparency and governance. The report will also include recommended sphere of influence determinations. SMLAFCo will consider the final MSR on June 15, 2022.

Analysis
Staff has reviewed the final MSR and supports SMLAFCo adoption. The report’s determinations and recommendations serve as a framework to enhance City operations, fiscal planning, transparency and governance.

Staff will provide an overview of the draft letter during the City Council meeting on June 7, 2022.

12.1 Packet Pg. 196
Fiscal Impact
There are no fiscal impacts associated with this City Council update regarding the information described in the staff report.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Attachments

1. City’s Response Letter to Draft MSR

2. City’s Response Letter to Final MSR

12.1 Packet Pg. 197

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Attachment: City’s Response Letter to Draft MSR (2294 : Municipal Service Review)

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Attachment: City’s Response Letter to Draft MSR (2294 : Municipal Service Review)

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Attachment: City’s Response Letter to Draft MSR (2294 : Municipal Service Review)

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Attachment: City’s Response Letter to Draft MSR (2294 : Municipal Service Review)

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Attachment: City’s Response Letter to Draft MSR (2294 : Municipal Service Review) June 8, 2022
Rob Bartoli
Executive Officer
San Mateo Local Agency Formation Commission
455 County Center, 2nd Floor
Redwood City, CA 94063
[email protected]
RE: Final Municipal Service Review Updates for the City of East Palo Alto, East Palo Alto Sanitary District, and West Bay Sanitary District
Mr. Bartoli,
This letter serves as the City of East Palo Alto’s official response to the Final Municipal Service Review (MSR) for the City of East Palo Alto (“City”), East Palo Alto Sanitary District (EPASD), and West Bay Sanitary District (“West Bay”) published by your agency.

On behalf of the City Council, staff, and the community of East Palo Alto, I extend our thanks to the San Mateo Local Agency Formation Commission (“Commission,” SMLAFCo) and the team at Berkson Associates for preparing a final MSR that incorporates updated information provided by the City and responses to comments submitted by interested parties. The Council received a presentation by Executive Officer Rob Bartoli on April 19, 2022, and considered the Draft MSR at the May 3, 2022, Council Meeting. The MSR both: 1) underscores the challenges and priorities that drive the City’s strategies for addressing the needs of our diverse and economically disadvantaged community, and 2) offers solutions to enhance the City’s financial outlook and improve the economic outlook for all residents. The City reaffirms the message in our comment letter dated May 5, 2022, offers the following comments on the MSR, and urges the Commission to adopt the MSR and sphere recommendations.

City of East Palo Alto Fiscal Health
During the MSR process, comments have been made regarding the City of East Palo Alto’s overall fiscal health. As stated in the MSR, the City is in a relatively good financial position, which is expected to improve as new developments advance. The City is in the process of completing a General Plan Amendment to accommodate new development, which is estimated to result in a significant increase in annual fiscal benefits from property taxes, potentially generating an annual surplus of between $25 million and $30 million for the City and other entities, including the Ravenswood City School District, Menlo Fire, Sequoia Union High

12.1.b
Packet Pg. 203 Attachment: City’s Response Letter to Final MSR (2294 : Municipal Service Review) School District, and the County Library system. The City also anticipates collecting between $4 million and $4.6 million per year in Measure HH taxes, which will support affordable housing and job training initiatives for East Palo Alto residents.

The proposed developments would lead to the following impact fees that will enable the City to leverage funding to improve infrastructure, such as:
• Commercial Linkage Fee to support affordable housing - $33.5 million to $40 million • Public Facilities Fee - $11 million to $12.5 million
• Parks and Trails - $6.3 million to $7 million
• Transportation - $25 million to $30 million
• Water and Storm Drainage - $36 million to $40 million The EPASD’s unwillingness to provide sanitation services consistent with industry standards to these new developments has negatively impacted the City’s fiscal health over the past three years. When City-approved development projects are delayed or cancelled due to a lack of support from the EPASD, the City is then denied the portion of associated tax revenues and community benefit funds. The City’s reserve has been used to balance the City’s finances in these cases, but this is not a prudent long-term solution. A logical long-term solution is to advance City-approved projects and develop strategies to accommodate additional development that aligns with the priorities and goals of both the City and residents.

City of EPA Water and Storm Drain Infrastructure
During the MSR process, the City’s ability to maintain the City’s water and storm drain infrastructure has been called into question. Although substantial additional work is necessary, the City has made great progress in several areas, demonstrating our commitment moving forward:

Guiding Documents Connected to the City’s Water System
• 2022 Water Master Plan update currently underway (anticipated completion in June 2022)
• Asset Management Plan (AMP) for the Water System (completed and adopted in 2022) • Urban Water Management Plan (UWMP) (completed and adopted in 2021) Water System Improvement Projects
• Bay Road and Pulgas Avenue (2,700 linear feet of new watermain) • City-wide water system improvements through the City’s water system operator • Gloria Way Well (2017)
• Pad D Water Tank (Public/Private partnership)
• Water turnout upgrade at O’Brien completed in 2020
Water System Improvement Projects Designed and are now “Shovel Ready” • 12” watermain at University/Cooley Avenue (construction to begin Fall 2022) • University/Woodland watermain gap closure (construction to begin in 2023)

12.1.b
Packet Pg. 204 Attachment: City’s Response Letter to Final MSR (2294 : Municipal Service Review) • Emergency Intertie with Palo Alto (construction to begin in 2023) • 16” Inch Purdue line completed in 2020 (construction to begin in 2023) • Water Main Replacement Project (Ongoing Citywide effort 2022-2024) • Pad D Well Design completed in 2020 (construction TBD) Water System Improvement Projects in the Design Process • San Francisco Public Utilities Commission (SFPUC) Fourth Turnout • Demeter Waterline Loop
• Water Tank on West Side (Work with Developer, pending support from EPASD) Stormwater Improvement Projects Completed Over the Last Three Years • Drainage improvements completed to mitigate local flooding (Pulgas, Menalto, Runnymede) in 2020
• Annual vacuum of stormdrain inlets city-wide
• Weeks Street Storm Drain design (750 linear feet) completed with developers of the Primary School. (Project construction cancelled due to EPASD failure to issue will-serve notice)
• SFC JPA Flood protection Reach 1 project Levee Project completed in 2019 • Bay Road and Pulgas Avenue Storm Drain (5,200 linear feet) completed in 2021 • Trash Capture Device at O’Connor Pump Station (NPDES Permit Compliance) completed in 2019
• City-wide street sweeping program
• City-wide street sweeping signage project completed in 2022 • Runnymede Channel Improvements completed in 2019
Stormwater Improvement Projects Underway/Upcoming
• O’Connor Pump Station Improvements Phase I
• Storm Drain upgrades associated with various new developments (contingent upon EPASD approvals)
• Addison Avenue drainage, storm drain, and NPDES improvements • O’Connor Pump Station Improvements (Phase II) pending Hazard Mitigation Grant approval by FEMA
• Newell Bridge Replacement (partnership with Palo Alto) Subsidiary District Determination
The recommendation/determination that the City consider assuming sanitary sewer as a subsidiary district of the City responds to a well-documented need to proactively plan for sewer infrastructure necessary to meet the needs of current rate payers and accommodate economic development vital to the City’s fiscal resiliency and quality of life of East Palo Alto residents.

This recommendation is consistent with State policies favoring a single multipurpose agency when the broad range of municipal services are to be provided in urban areas. This governance alternative would make EAst Palo Alto whole as a land use agency and utility provider and allow

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Packet Pg. 205 Attachment: City’s Response Letter to Final MSR (2294 : Municipal Service Review) the City to develop a Capital Improvement Plan (CIP) to meet community needs for jobs, housing, health clinics, etc.

Portion of EPASD Territory in Menlo Park
The City is prepared to address the fact that Menlo Park residents within EPASD boundaries should have an avenue for engagement with the City in matters related to sewer service, if a subsidiary district is established. The City also recognizes that there are several instances in the State in which a subsidiary district includes territory outside the City. In fact, enabling legislation for subsidiary districts (Government Code Section 57105) permits a subsidiary district to be formed if at least 70% of the land area and 70% of the registered voters are within City boundaries. For example, in San Mateo County, the North San Mateo County Sanitation District, a subsidiary district of the City of Daly City includes unincorporated Broadmoor, Unincorporated Colma and the Town of Colma. Mechanisms such as advisory bodies exist to ensure engagement with neighborhoods located in another city that are included in a subsidiary district.

Willingness to Partner with City of Palo Alto, West Bay Sanitary District, or Other Entities The report identifies partnerships with the City of Palo Alto as the treatment plant operator and West Bay as a possible contract sewer service provider. Most recent discussion by the West Bay Board at the April 27, 2022, meeting indicates that, if the community supports a subsidiary district, West Bay would support East Palo Alto by providing maintenance services, as it does to the Towns of Los Altos Hills and Woodside, through an inter-agency agreement.

Social and Economic Communities of Interest (Section 56425(e)(4) Since incorporation, the City Council and Staff have organized around improving community safety, the availability of housing, job opportunities and neighborhood serving facilities for a historically disadvantaged and diverse community. The failure of EPASD to plan proactively to accommodate these goals indicates that the determination of social and economic community of interest required by Section 56425 (e)(4) is incongruous with the continued existence of EPASD as an independent special district.

In conclusion, East Palo Alto continues to appreciate the comprehensiveness of the MSR and the recommendations that seem intended to resolve the documented inadequacies of the sewer infrastructure, the lack of a CIP, and the current impasse regarding a funding formula to eliminate an intractable barrier to the achievement of critical City goals. For the past decade and beyond, the City has consistently built its capacity to attain economic self-sufficiency, through policy decisions, funding options, and strategies that result in beneficial development. Ensuring that the City’s sanitation infrastructure can support City-approved development is a challenge that must be resolved so that all residents may benefit from citywide improvements and mindful growth.

Like many jurisdictions, the City recognizes the need for improvements to its key infrastructure, such as water, storm water, street, park, and community facilities. Demonstrating the City’s

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Packet Pg. 206 Attachment: City’s Response Letter to Final MSR (2294 : Municipal Service Review) commitment to these efforts, the City has adopted comprehensive plans, enacted legal impact fee structures, invested millions of Federal, State, and local funds into improving this much needed infrastructure. It is imperative that the City hold ultimate land use authority for all development within City borders. At this time, the dependency on the EPASD to authorize developments that have already completed the public City-approval process has become a detriment and an impediment to the City’s growth.

The City actively seeks grant funding, proactively designs infrastructure improvements, and has a well-documented track record of delivering complex capital improvement projects. In contrast, the City has concerns about the ability of the EPASD to deliver improvement projects. As an example, although EPASD is contractually obligated to deliver a sewer improvement to support the recent Light Tree affordable housing project, that work has yet to be initiated. As a result, the non-profit housing developer is facing significant risk of not meeting the approved completion date of January 2023 and, thus, being unable to provide much needed affordable housing to our residents.

For these reasons and at the direction of the City Council, I request that the SMLAFCo adopt the Municipal Service Review Updates for the City of East Palo Alto, East Palo Alto Sanitary District, and West Bay Sanitary District.

Sincerely,
Ruben Abrica
Mayor

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Packet Pg. 207 Attachment: City’s Response Letter to Final MSR (2294 : Municipal Service Review)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Rachel Horst, Housing and Economic Development Manager Patrick Heisinger, Interim City Manager
SUBJECT: Update and Recommendations Regarding the City’s Unhoused Residents Recommendation
It is recommended that the City Council take the following actions:

1.) Accept the report providing an update on actions related to unhoused residents in East Palo Alto;

2.) Provide direction on the proposed approach to oversized and recreational vehicle enforcement;

3.) Provide direction on the Master Temporary Use Permit application to authorize provision of temporary housing on public or private property; and

4.) Adopt a Resolution authorizing staff to use Housing funds to cover permit fees for the Master TUP application for temporary housing (“Master TUP”).

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 6: Create a Healthy and Safe Community
Background
Since May of 2021, the City Council has regularly received updates from staff and taken actions to address the growing number of encampments of varying sizes scattered across the City and Recreational Vehicles (“RVs”) parked in the public right-of-way. This has included:
• Directing staff to work closely with the County of San Mateo (“the County”) and service providers LifeMoves and Project WeHOPE to offer case management, shelter, and interim and permanent housing to unhoused residents in East Palo Alto; • Directing Public Works staff to clean up public areas of trash and debris related to encampment areas or RVs disposing of trash or discharging in the public right-of way;

12.2 Packet Pg. 208
• Authorizing the extension of the RV Safe Parking Program through April 2023 and directing Public Works staff to provide information to RV inhabitants of the City’s Oversized Vehicle Ordinance and nearby sewage disposal sites; • Directing staff to coordinate with the County and service providers to clear out the encampment area and provide shelter or interim housing to all individuals residing in Bell St. Park; and
• Directing staff to develop a Master Temporary Use Permit (“Master TUP”) process to allow for expedited permit processing for property owners interested in allowing vehicles to park overnight or providing temporary shelter on the property.

With this report, staff provides an update on Bell St. Park and other encampment or RV areas and seeks City Council input on 1.) oversized vehicle and RV enforcement; 2.) the Master TUP application for overnight parking and temporary shelter in existing buildings; and 3.) pursuing an agreement with Downtown Streets Team to support clean-up efforts citywide Analysis
Updates on Encampment and RV Areas in the City
Bell St. Park Encampment Clean-Up
On Monday, May 23, following two months of coordination with the County and providing notices to encampment residents a month prior, Bell St. Park was closed to the public for the encampment clean-up.1 Encampment residents were provided with bins to store personal belongings and were offered transport to shelter or other locations via LifeMoves and Project WeHOPE. When the area was vacated, City Maintenance staff and contractor US Ecology cleaned the area. The clean-up was completed on May 24, and the area remains fenced off while it is restored for public use.

In the weeks leading up to the clean-up, several individuals at Bell St. Park received a housing voucher and a move-in date, though some were not housed prior to May 23. Approximately 16 individuals remained without housing on the day of the clean-up. Sixteen beds were cleared so that all individuals could be offered shelter at one of three shelter locations in the County, including Project WeHOPE in East Palo Alto.

Case workers have maintained contact with individuals that remain unhoused from the Bell St.

Park encampment, and the County continues to hold weekly meetings to review the status of each Bell St. Park resident.

Other Clean-Ups of Encampment or RV Areas
Public Works has conducted clean-ups of trash and debris in environmentally sensitive areas, including along San Francisquito Creek, and in areas of significant trash buildup, such as along Bay Rd. Recently, the City conducted a clean-up on private property on Tara Rd., removing two abandoned and nonoperational buses, pursuant to Chapter 10.28 of the Municipal Code.2
1 The encampment clean-up followed the plan as set forth in the April 5 staff report on Bell St. Park:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1806&MediaPosition=9423.737&ID=2176&CssClas s=
2 https://library.municode.com/ca/east_palo_alto/codes/code_of_ordinances?nodeId=TIT10VETR_CH10.28ABVE

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Each clean-up was property noticed, and in cases where an individual was camping in the area, staff worked in advance with LifeMoves and Project WeHOPE to visit the client or clients in the area to assess whether they could enter shelter or an alternative housing location and to offer storage for personal belongings.

The following list shows current and former encampment or RV locations where the City has conducted a clean-up, and the tentative dates of future clean-ups. Please note that not every clean-up includes clearing of tent areas or RVs; the focus is on removing trash and sewage that threaten nearby waterways and other environmentally sensitive areas.

Clean-Up Date Location
18-Mar SF Creek 1
13-May SF Creek 2
13-May Bay/Fordham
23-May Bell St. Park
Week of June 6 Weeks St. (RVs)
Week of June 6 Cooley Landing
Enforcement of Oversized and Recreational Vehicles
Members of the community have submitted numerous complaints about oversized vehicles and RVs crowding City streets. At this time, the City is enforcing any vehicle that creates an imminent, environmental health and safety concern. Staff is seeking direction from the City Council on what enforcement measures should be used Citywide with regard to oversized vehicles and RVs.

Staff recommends the City embark on a comprehensive outreach process to those either residing in, or simply parking oversized vehicles in the public right-of-way, to inform these owners that effective July 15, 2022, the City will begin enforcing. This may lead to the towing of oversized vehicles and RVs.

Master Temporary Use Permit for Temporary Housing
At the April 5, 2022 City Council meeting3, staff presented options for a Master TUP process to provide interim housing solutions for unhoused individuals in East Palo Alto. The Master TUP program is one of multiple strategies to address the increased number of unhoused residents in East Palo Alto.

With this program, the City is seeking to expand capacity to provide a safe parking location for unhoused residents in RVs and a temporary shelter option located within East Palo Alto. The City has been working in close partnership with the County of San Mateo and service providers LifeMoves and Project WeHOPE for the last two years to offer interim and permanent housing and case management services to unhoused East Palo Alto residents. The Master TUP program is intended to close the gap in interim housing solutions by engaging local nonprofits and faith communities in this effort.
3 See the staff report at:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1806&MediaPosition=10404.737&ID=2182&CssCla ss=

12.2 Packet Pg. 210
The Master TUP consists of a single application containing all applicable site standards and conditions for different types of temporary housing on all parcel types. Applicants could apply for a single property or for a multi-site program, such as a rotating shelter, for up to 12 months at a time.

City Council directed staff to develop a Master TUP for temporary housing solutions that may take the form of:
• Vehicles parked overnight on private property
• Temporary shelter provided in existing buildings on private property • Temporary housing placed on-site on private property
In this report, staff recommends the City adopt standards for the first two scenarios and develop standards for new temporary housing structures separately.

Site Standards and Requirements for a Master TUP
One of the primary objectives of the Master TUP is to inform applicants up-front about the requirements of temporary housing as a use and to ensure that the Planning and Building Divisions and outside reviewing agencies have sufficient information to review and approve the application in a streamlined manner. As with any TUP, Master TUP applications are subject to site standards and conditions that ensure safety and conformance with applicable Planning and Building code.

The site standards and types of conditions that may be imposed for a TUP are in Section

18.94.090 of the East Palo Alto Municipal Code. Where possible, site standards are based on the zoning of the parcel(s) where the temporary use is taking place and consider adjoining uses. Conditions placed on the project are those deemed reasonable and necessary to ensure approval will comply with the required findings [for the temporary use, in Section 18.94.080].

Since the TUP is subject to the Planning Director’s determination that the temporary use is compatible with the subject zone and surrounding land uses, the Master TUP application must be adaptable to all zoning types and show that the proposed temporary housing is appropriate for the parcel it is located on.

As part of the Master TUP program, staff has developed draft standards for both overnight parking on private property and temporary shelter in existing buildings. These requirements span the Development Code, Building Code, and Fire Code.

Site Standards for Overnight Parking on Private Property The current RV Safe Parking Program operated by Project WeHOPE at the City-owned site at 1798 Bay Rd. (“Property) and the conditions of approval for this permit, which require adequate spacing between vehicles, proper circulation, security, and other baseline conditions at the Property, may be adapted to a Master TUP to allow overnight parking of RVs or vehicles on private property. Please note that an inspection of the site by Menlo Park Fire Protection District (“Menlo Fire”) and the Building Division would still be required prior to approval of any permit.

In addition, the License and Grant Agreement for the RV Safe Parking Program,4 which the City executed with Project WeHOPE to allow program operations on the City-owned site, 4 The License & Grant Agreement was most recently amended for the third time, on April 5, 2022, to extend the program term through April 2023.

12.2 Packet Pg. 211
includes programmatic requirements that may be useful for a Master TUP.

Draft standards for a Master TUP for overnight parking based on these documents are provided in the draft Master TUP application in Attachment 2.

Site Standards for Temporary Shelter in Existing Buildings Potential applicants wishing to dedicate a portion of existing space, such as a community room in a church as a temporary shelter, must demonstrate that the area meets basic safety requirements. Prior to permit approval, Menlo Fire and the Building Division would inspect the portion of the site to be used as temporary housing. Similar to the overnight parking program, programmatic requirements – at a minimum, providing meals, case management, and site supervision-- are incorporated into the Master TUP application.

Draft standards for a Master TUP for temporary shelter in existing buildings are provided in the draft Master TUP application in Attachment 2.

Preference for East Palo Alto Residents
This Master TUP program is designed to alleviate the immediate need for housing in East Palo Alto. Applicants will be required to demonstrate how the program prioritize East Palo Alto residents experiencing homelessness.

As the operator of the RV Safe Parking Program, Project WeHOPE prioritizes applications as follows: 1.) families, disabled individuals, seniors, veterans from East Palo Alto or Belle Haven;

2.) other individuals from East Palo Alto or Belle Haven; 3.) families, disabled individuals, seniors, veterans from outside of East Palo Alto or Belle Haven; and 4.) residents from outside East Palo Alto or Belle Haven.

Staff recommends this priority order, which was incorporated into the License and Grant Agreement for the RV Safe Parking Program, be included in the Master TUP application as a requirement for overnight parking or temporary shelter programs.

Enforcement of Oversized Vehicle Ban
The City’s Oversized Vehicle Ordinance (Section 10.04.130 of the Municipal Code) has not been fully enforced during the COVID-19 pandemic, in large part due to the lack of sufficient space for the increasing number of RVs parked in the public right-of-way. As noted above, in cases where there is buildup of trash and debris in the public right-of-way or environmental hazards such as illicit discharge from RVs, however, the City has taken action to clear the area, with proper noticing.

Another objective of this Master TUP program is to support temporary overnight parking programs beyond the RV Safe Parking Program to provide additional space for RVs so the City may resume effectively enforcing the Ordinance, citing and towing vehicles parked during the hours of 2:00am to 5:00am.5
Master TUP Permitting Fees
The cost of TUP application for a 12-month period is $10,375,6 with a renewal fee of $1,728, according to the City’s current Master Fee Schedule. Staff recommends that the City fund this 5 Please note that RVs parked in the public right-of-way impacting health, safety, or waterways are subject to citation and removal. 6 This fee will increase in the next fiscal year (2022-23) to $11,747.

12.2 Packet Pg. 212
fee for nonprofit applicants for the Master TUP for temporary housing to lower the cost and administrative burden associated with establishing an overnight parking program or shelter program.

Assistance for Property Owners with the City’s TUP Application Process Staff is committed to eliminating barriers a private property owner would face if trying to provide housing opportunities for the unhoused on their property. Staff recommends the City Council consider appropriating a maximum of $30,000 so eligible applicants could apply for to help cover costs associated with the City’s Master TUP application process. The proposed terms of the assistance are as follows:
• Maximum amount $10,000
• Eligible expenses: architecture, consultant fees, and fees for other entities with other reviewing agencies (e.g. Menlo Fire)
• Owner shall attempt to assist at least 10 households to receive the grant • First come, first served basis
• Property must be eligible for the Master TUP as described in this staff report Potential Partnership with Downtown Streets Team
Engaging the Downtown Streets Team is an additional action the City can take to address the ongoing need for trash and debris clean-up in public areas citywide while also providing additional outreach to unhoused individuals in East Palo Alto. Representatives of the Downtown Streets Team made a special presentation to the City Council at the May 17, 2022 meeting on the program model and common funding sources7.

At this meeting, staff would like to confirm that the City Council wishes to pursue an agreement with Downtown Streets Team.

Next Steps
Encampments and RVs
Staff will continue to meet weekly with the County and with service providers to follow up on clients from the Bell St. Park encampment and to support residents living at other encampments and in RVs to apply for assistance and housing vouchers. This close collaboration between all partners will continue so that the City can sustainably address the ongoing housing crisis in East Palo Alto.

There will be a continued need for clean-up at various sites across the City. If directed to do so, staff will return with a refined cost estimate and funding proposal for Downtown Streets Team.

Master TUP Process
7 Please see:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1810&MediaPosition=&ID=2261&CssClass=

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Staff will incorporate any feedback from City Council into the Master TUP application and prepare it for posting on the City’s website. If the City Council wishes to create a grant to assist applicants with the Master TUP process, as outlined above, staff will return to seek appropriation authority for the funds. Finally, if authorized, staff will use Housing funds to fund the permit fees for a Master TUP.

Fiscal Impact
To fund permit fees for the Master TUP for temporary housing would cost approximately $31,125, assuming three applications total over the next year, with additional amount of $5,184 for renewals. This can be offset using Housing funds.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website on a bulletin board located at 2415 University Avenue, East Palo Alto.

Attachments

1. Resolution

2. Master TUP Application Supplement

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RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING STAFF TO USE HOUSING FUNDS TO COVER PERMIT FEES FOR A MASTER

TEMPORARY USE PERMIT FOR TEMPORARY HOUSING
WHEREAS, On July 17, 2018, by Resolution No. 4998, the City Council declared a shelter crisis pursuant to Government Code 8698 et seq.; and
WHEREAS, the number of unhoused residents, both in recreational vehicles (“RVs”) and encampments, in East Palo Alto has increased in recent years; WHEREAS, the County of San Mateo has named 2022 the “Year to End Homelessness in San Mateo County,” with the goal of bringing homelessness down to “functional zero,” or a level in which the number of units is sufficient to house everyone who is experiencing homelessness; and WHEREAS, the City has been working in close partnership with the County of San Mateo and service providers LifeMoves and Project WeHOPE to offer interim and permanent housing and case management services to unhoused East Palo Alto residents; and WHEREAS, one of the City’s Five-Year Affordable Housing Strategy goals, adopted in 2018, is to Increase Housing Opportunities for Formerly Homeless Residents by a total of 80, including 30 Safe Parking and 10 additional housing opportunities per year; and WHEREAS, the City is pursuing multiple strategies to provide interim housing solutions while residents receive services and seek permanent housing; and WHEREAS, the City Council directed staff to develop a Master Temporary Use Permit (“Master TUP”) program, as a streamlined permitting process to enable property owners to provide overnight parking or temporary shelter in existing buildings to unhoused residents in East Palo Alto.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes staff to use Housing funds to cover permit fees for the Master TUP application for temporary housing.

PASSED AND ADOPTED this 7th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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Packet Pg. 215 Attachment: Resolution (2293 : Update and Recommendations Regarding the City’s Unhoused Residents) SIGNED:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney

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Packet Pg. 216 Attachment: Resolution (2293 : Update and Recommendations Regarding the City’s Unhoused Residents) City of East Palo Alto
Community & Economic Development Department
Master Temporary Use Permit Application Supplement
This application is intended for temporary use of private property to provide overnight parking or overnight shelter in an existing building.

Please submit this form together with the Universal Planning Application. Only complete applications will be accepted. Please reach out to [email protected] with questions about your application or if you would like staff assistance.

Section I.

Contact Name
Organization
Site Address
Proposed Site Use overnight parking or
temporary shelter
Brief Description of Program
Length of Time for Proposed Use up to
12 months
Hours & Days of Operation only overnight
programs are permitted
Maximum number of participants
maximum 1 individual per 200 sq ft. in
interior spaces
Section II.

1. Please attach an operational letter describing the proposed program. The operational letter should address the following:
• Organizational partners providing services on-site
• Site supervision plan with emergency contact information

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Packet Pg. 217 Attachment: Master TUP Application Supplement (2293 : Update and Recommendations Regarding the City’s Unhoused Residents)

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East Palo Alto City CouncilJune 7, 2022

East Palo Alto City Council
June 7, 2022