Agenda packet — East Palo Alto City Council, September 20, 2022 (part 1 of 2)

East Palo Alto City Council September 20, 2022 Agenda Page 1 of 5

EAST PALO ALTO CITY COUNCIL

REGULAR MEETING AGENDA
September 20, 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.

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International numbers available: https://zoom.us/u/aMWYF4KT East Palo Alto City Council September 20, 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. Award of contract to Frank and Grossman Landscape Contractor, Inc. for Janitorial Services
Recommendation: Adopt a Resolution awarding a contract to Frank and Grossman Landscape Contractors, Inc. for five (5) years with two possible one-year extensions at the discretion of the City Manager for an amount not-to-exceed one hundred fifty thousand dollars ($150,000) annually for city facilities janitorial services.

2. Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave
Recommendation: Adopt a resolution authorizing the City Manager to:

1. Negotiate and execute amendments to the City’s existing Loan and Regulatory Agreements to effectuate the transfer of the Nugent Square Apartments to a new limited partnership and the refinancing of the Nugent Square Apartments, in forms approved by the City Attorney.

2. Negotiate and execute subordination agreements subordinating the City's loan and regulatory agreement to the new financing, in a form approved by the City Attorney; and

3. Authorize the City Manager to execute any other documents necessary to complete the new financing provided such documents are approved by the City Attorney.

3. On-Call Arborist Consulting Services for Tree Evaluations on Private Property Recommendation: Adopt a Resolution authorizing the City Manager to execute a consultant contract for on-call Arborist Consulting services for tree evaluations on private property with Davey Resource Group, Inc. (DRG) in an amount not-to-exceed $40,000 for a period up to two-years with an option for a one-time extension of two-years and an additional $40,000.

4. West Coast Arborists Contract Amendment for $50,000 - Public Trees Recommendation: Adopt a Resolution approving a contract amendment with West Coast Arborists, Inc. for an additional amount of $50,000 for tree maintenance services, for a total contract amount of $150,000.

5. 4th Quarter Treasury Report FY2021-22
Recommendation: Accept and file the Treasury Report for the fourth quarter ended June 30, 2022.

6. Submit an Application for TA Cycle 6 Bike/Ped Program Funding Recommendation: Adopt a resolution supporting the East Bayshore Road Pedestrian and Bicycle Safety Improvements Project project and submitting an application to the San Mateo County Transportation Authority for Cycle 6 Pedestrian and Bicycle Program Funding

7. Update on the Chief of Police Recruitment
Recommendation: It is recommended that the City Council:

1. Accept staff’s report on the status of the Chief of Police recruitment; and

2. Direct the Interim City Manager to publish a future informational report complete East Palo Alto City Council September 20, 2022 Agenda Page 3 of 5 with each Councilmember’s appointee to serve on the five-member community panel for the recruitment of the Police Chief.

8. Convenience Fee for Online Payments of Business License Tax and Penalties Recommendation: Adopt a resolution authorizing the City Manager to set a convenience fee minimum for the use of credit cards and e-check transactions for online payments of Business License Tax and Penalties.

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. Update on Hybrid City Council meetings

7. SPECIAL PRESENTATIONS

1. Intelligent Transit Signal Priority Project Update
Recommendation: Receive Presentation.

2. Special Presentation from the East Palo Alto Sanitary District on Financing Options to Fund Infrastructure Improvements
Recommendation: It is recommended that the City Council allow representatives from the East Palo Alto Sanitary District (EPASD) to give a presentation regarding financing options for infrastructure improvements.

8. PUBLIC HEARINGS

1. Woodland Park Euclid Improvements
Recommendation:

1. Adopt a resolution:
• Certifying that the Final Environmental Impact Report (FEIR) has been done in compliance with the California Environmental Quality Act (CEQA); • Adopting a Mitigation, Monitoring and Reporting Plan pursuant to Public Resources Code 21000 and the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000);
• Adopting a Statement of Overriding Considerations;
• Directing the Community and Economic Development Director to File a Notice of Determination within five working days of adoption pursuant to Section 15075 of the CEQA Guidelines

2. Adopt a Resolution approving the General Plan Amendment (GP19-001) establishing the Neighborhood Center Overlay Land Use Designation;

3. Introduce Ordinances enacting the Development Code and Zoning Map amendments (ZC19-002) establishing the Neighborhood Center Overlay District;

4. Adopt a resolution:
• Approving the Design Review Permit (DR 19-028), Conditional Use Permit (CUP22-003), and Tentative Parcel Map (TTM19-001) based on the findings, requirements and conditions of approval which are Attachments to the resolutions and incorporated by reference;
• Approving the Relocation Plan dated September 2022; and East Palo Alto City Council September 20, 2022 Agenda Page 4 of 5 • Authorizing the City Manager to execute a Notice of Special Restrictions applying the City's Rent Stabilization Ordinance to 160 new/replacement units in a form approved by the City Attorney.

5. Introduce an Ordinance approving the Proposed Development Agreement for the Woodland Park Euclid Improvements Project

9. POLICY AND ACTION

1. Use of American Rescue Plan Act (ARPA) Funds
Recommendation: It is recommended that the City Council take the following actions:

1. Accept the staff report on the City’s use of American Rescue Plan Act (ARPA) funding;

2. Provide direction for how the City should allocate the remaining portion of ARPA funding; and

3. Direct staff to return to the City Council in October 2022 with specific allocation recommendations for the remaining portion of the City’s ARPA funding.

10. COUNCIL REPORTS

11. ADJOURNMENT
East Palo Alto City Council September 20, 2022 Agenda Page 5 of 5 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 availabl e 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 do cu me n ts pertaining to an open session item provided to a majority of the City Council less than 72 hours prior to the meeting, shall b e ma d e available for public inspection at the front counter at the City Clerk's Office, 2 ND Floor, City Hall, 2415 University Avenue, East Pa lo Alto, California 94303 during normal business hours. Information distributed to the Council at the Council meeting becomes part o f 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 accommodatio n s, a id s o r services may be made by a person with a disability to the City Clerk's office at (650) 853-3127 no less than 72 h o u rs p rio r to th e meeting as required by Section 202 of the Americans with Disabilities Act of 1990 and the federal rules and regulations adop ted 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 le ast 7 2 hours prior to the meeting.

POSTED: September 16, 2022
ATTEST:

James Colin
City Clerk
Future Meetings:

Meeting Date Time
Study Session September 27, 2022 Cancelled
RegularMeeting October 4, 2022 6:30 p.m.

RegularMeeting October 18, 2022 6:30 p.m.

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 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: Award of contract to Frank and Grossman Landscape Contractor, Inc. for Janitorial Services
Recommendation
Adopt a Resolution awarding a contract to Frank and Grossman Landscape Contractors, Inc. for five (5) years with two possible one-year extensions at the discretion of the City Manager for an amount not-to-exceed one hundred fifty thousand dollars ($150,000) annually for city facilities janitorial services.

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 currently has a city-wide facility janitorial services agreement with Enviro Clean Maintenance, LLC for routine city facility cleaning. The term of the Janitorial Services Agreement with Enviro Clean Maintenance expires on November 30, 2022.

On March 25, 2022, staff released a Request for Proposal (RFP) for city-wide janitorial services which includes the following city facilities:

1. Community Development Facility, 1960 Tate Street

2. Reentry Program Facility, 2277 University Avenue

3. Maintenance Corporation Yard Facility, 150 Tara Road

4. Police Department Facility, 141 Demeter Street

3.1 Packet Pg. 6

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

6. Space at YMCA Facility, 550 Bell Street

7. Cooley Landing Facility & Park Restrooms, 2100 Bay Road

8. Martin Luther King Jr. Park Restrooms, 435 Daisy Lane

9. Jack Farrell Park Restrooms, 2508 Fordham Street

10.Additional Services: Facility rental/events & emergency cleaning at City Facilities Staff posted the RFP on City’s website and mailed it through the US Postal Service to several janitorial companies in the Bay Area.

Analysis
By the deadline of May 27, 2022, the City received a total of ten (10) proposals from the following companies:

1. California best Janitorial

2. Enviro Clean Maintenance, LLC

3. Wright Solutions, LLC

4. Frank + Grossman Landscape Contractor, Inc.

5. Green Source Janitorial

6. Impec Group

7. Premier Property Preservation

8. Universal Building Services

9. Commercial Maintenance Janitorial Service

10.Aim to please Janitorial Services, Inc
The evaluation committee comprised of three staff members from the Public Works Department. The evaluation committee reviewed and ranked the proposals based on qualification, experience, and cost. The highest-ranking proposer, Frank and Grossman Landscape contractors, Inc. was the highest ranked firm, and is being recommended for selection.

Frank and Grossman Landscape Contractors, Inc. is a full-service, quality janitorial and landscape corporation serving the greater Bay Area. Frank and Grossman Landscape Contractors corporate office is located at 3428 Arden Road in Hayward California with six other local branches at the following locations:

1. San Jose - 1253 Alma Court, San Jose, Ca 95112

2. Hayward - 3111 Depot Road, Hayward, Ca 94545

3. Peninsula - 2949 Edison Way, Redwood City, CA 94063

3.1 Packet Pg. 7

4. North Bay - 7765 Healdsburg Avenue, Suite 4, Sebastopol, CA 95472

5. Monterey/Carmel - 2200 Del Monte, Monterey, CA 93940

6. Concord - 418 Buchanan Circle, #7 Pacheco, Ca 94553
The janitorial services contract will have a 5-year term with two (2) optional one-year extensions at the discretion of the City Manager. The annual contract amount is $150,000. The total compensation for five years would be $750,000.

Fiscal Impact
The estimated annual cost for facility janitorial services is one hundred and fifty thousand Dollars ($150,000) which includes regular facility janitorial services, including daily park restroom cleaning, as well as cleaning services for facility rentals. 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
A. Proposal
B. RESOLUTION
C. RESOLUTION Janitorial Services Contractor

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 EXECUTE A CONTRACT WITH FRANK AND GROSSMAN LANDSCAPE CONTRACTORS, INC. FOR FIVE (5) YEARS WITH

TWO ONE-YEAR EXTENSIONS AT THE DISCRETION OF THE CITY MANAGER

FOR CITY FACILITIES JANITORIAL SERVICES IN AN AMOUNT NOT TO EXCEED $150,000 ANNUALLY.

WHEREAS, the City currently has a facility janitorial services agreement with Enviro Clean Maintenance for routine city facility cleaning which expires on November 30, 2022; and
WHEREAS, on March 25, 2022, staff released a Request for Proposal (RFP) to seek professional janitorial services for facilities city-wide; and WHEREAS, the city received total of ten (10) proposals; and WHEREAS an evaluation committee comprised of city staff rated Frank and Grossman Landscape Contractors, Inc. as the highest rated proposer; and WHEREAS, Frank and Grossman Landscape Contractors, Inc. meets all the minimum qualifications.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes the City Manager to execute a contract with Frank and Grossman Landscape Contractors, Inc. for five (5) years with additional two one-year extensions at the discretion of the City Manager for city facilities janitorial services in an amount not to exceed $150,000 annually.

PASSED AND ADOPTED this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________
Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

3.1.a
Packet Pg. 9
Attachment: Proposal (2372 : Award of contract to Frank and Grossman Landscape Contractor, Inc.) ________________________ ________________________________ James Colin, City Clerk Valerie J. Armento, Interim City Attorney

3.1.a
Packet Pg. 10
Attachment: Proposal (2372 : Award of contract to Frank and Grossman Landscape Contractor, Inc.) RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
AWARDING A CONTRACT TO FRANK AND GROSSMAN LANDSCAPE CONTRACTORS, INC.

FOR FIVE (5) YEARS WITH TWO ONE-YEAR EXTENSIONS AT THE DISCRETION OF THE CITY

MANAGER FOR CITY FACILITIES JANITORIAL SERVICES IN AN AMOUNT NOT TO EXCEED $150,000 ANNUALLY.

WHEREAS, the City currently has a facility janitorial services agreement with Enviro Clean Maintenance for routine city facility cleaning which expires on November 30, 2022; and WHEREAS, on March 25, 2022, staff released a Request for Proposal (RFP) to seek professional janitorial services city-wide; and
WHEREAS, by the deadline of May 27, 2022, the city received total of ten (10) proposals; and WHEREAS an evaluation committee comprised of city staff rated Frank and Grossman Landscape Contractors, Inc. as the highest rated proposer; and
WHEREAS, Frank and Grossman Landscape Contractors, Inc. meets all the qualifications and is located in Hayward, California; and

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY awards a contract to Frank and Grossman Landscape Contractors, Inc. for five (5) years with additional two one-year extensions at the discretion of the City Manager for city facilities janitorial services in an amount not to exceed $150,000 annually.

PASSED AND ADOPTED this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

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

3.1.b
Packet Pg. 11
Attachment: RESOLUTION (2372 : Award of contract to Frank and Grossman Landscape Contractor, Inc.) RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AWARDING A CONTRACT TO FRANK AND GROSSMAN LANDSCAPE
CONTRACTORS, INC. FOR FIVE (5) YEARS WITH TWO ONE-YEAR EXTENSIONS

AT THE DISCRETION OF THE CITY MANAGER FOR CITY FACILITIES JANITORIAL SERVICES IN AN AMOUNT NOT TO EXCEED $150,000 ANNUALLY.

WHEREAS, the City currently has a facility janitorial services agreement with Enviro Clean Maintenance for routine city facility cleaning which expires on November 30, 2022; and
WHEREAS, on March 25, 2022, staff released a Request for Proposal (RFP) to seek professional janitorial services city-wide; and
WHEREAS, by the deadline of May 27, 2022, the city received total of ten (10) proposals; and
WHEREAS an evaluation committee comprised of city staff rated Frank and Grossman Landscape Contractors, Inc. as the highest rated proposer; and WHEREAS, Frank and Grossman Landscape Contractors, Inc. meets all the qualifications and is located in Hayward, California; and

PASSED AND ADOPTED this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________
Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

3.1.c
Packet Pg. 12
Attachment: RESOLUTION Janitorial Services Contractor (2372 : Award of contract to Frank and Grossman Landscape Contractor, Inc.) ________________________ ________________________________ James Colin, City Clerk Valerie J. Armento, Interim City Attorney

3.1.c
Packet Pg. 13
Attachment: RESOLUTION Janitorial Services Contractor (2372 : Award of contract to Frank and Grossman Landscape Contractor, Inc.)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Hansom Hom, Deputy Manager, Special Projects
Patrick Heisinger, Interim City Manager
Karen Camacho, Housing Project Manager
SUBJECT: Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave
Recommendation
Adopt a resolution authorizing the City Manager to:

2. Negotiate and execute subordination agreements subordinating the City's loan and regulatory agreement to the new financing, in a form approved by the City Attorney; and

3. Authorize the City Manager to execute any other documents necessary to complete the new financing provided such documents are approved by the City Attorney.

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

Priority No. 6: Create a Healthy and Safe Community
Background
In 2003, the Redevelopment Agency of the City of East Palo Alto (City) provided a loan of $1,100,000 (City Loan) to the partnership, Nugent Square Partners, LP, controlled by Eden Housing, Inc. and EPA CAN DO (jointly, the Developer) for the development of Nugent Square, a 32-unit affordable housing apartment building, of which 25 apartments were constructed and set-aside for very-low (up to 50% Area Median Income (AMI)) and 6 were setaside for extremely low-income households (up to 30% AMI), with 1 apartment as the onsite

3.2 Packet Pg. 14
employee’s apartment (collectively, the Development). The City Regulatory Agreement that income-restricts the Development had an initial term of 55-years from completion of the Development, ending in 2059. The City Loan has a 40-year term and matures in 2044. Nugent Square also includes second-floor commercial office space which houses the headquarters of EPA CAN DO, the East Palo Alto Community Alliance and Neighborhood Development Organization.

In 2004, the Developer completed the Development and since that time has been managing it in accordance with the terms and conditions of all lenders who provided financing as well as the City’s regulatory agreement.

In March 2020, the City approved a resolution to modify the existing loan documents to allow the developer to refinance the permanent loan on the Development. The refinancing presented an opportunity for the City to negotiate key deal terms with the Developer, including: extending the regulatory agreement by 5 years to 2065, thus guaranteeing that the affordable units remained affordable for a longer time period; the City received a loan repayment of $50,000; the County of San Mateo received a loan repayment of $50,000; and the Developer paid the City a one-time $10,000 fee to cover the City’s legal expenses to facilitate the refinance. The March 17, 2020 staff report with an overview of the refinance can be viewed in Attachment 2.

As of September 2022, the property has made $76,797 in residual receipt payments to the City since being placed into service.

The purpose of this staff report is to: 1) provide the City Council with an understanding of the Developer’s proposal and the staff responses, 2) outline the steps required to complete the proposed refinancing, and 3) obtain approval from the City Council regarding the specific deal terms of the proposed refinancing and authorization to proceed with the refinancing.

Analysis
Developer Proposal
The Developer proposes to substantially renovate the Development with proceeds from a competitive tax credit (9% Low-Income Housing Tax Credits or “LIHTC”) award from the California Tax Credit Allocation Committee or “CTCAC” and $3.5 million in soft new loans from San Mateo County bearing 3% simple interest and repaid through residual receipts during the loan's 55-year term. The City’s existing loan on the property will be subordinated to these new County loans, as well as the loans for the construction and permanent mortgage lender.

The construction is anticipated to last from December 2022 to October 2023, and the work will improve the existing residents’ quality of life. No permanent relocation is anticipated and the Developer desires all current residents to continue living at Nugent Square. In-unit work will require temporary relocation of residents during construction for an anticipated duration of 4 weeks. Residents will continue to pay rent during relocation. Resident’s relocation costs, including moving expenses and accommodations at a nearby hotel, will be paid by the Developer in accordance with state and federal regulations. The scope of work has the following components:

3.2 Packet Pg. 15
· Repairing water damage to the stucco stairways
· Upgrading or replacing the elevator
· Replacing the roof
· Replacing and resurfacing the playground
· Improving the HVAC system in the management offices, services area and computer room.
· In-unit upgrades, including new mechanical/electrical/plumbing equipment when necessary, new cabinets and countertops and new flooring · Installing energy efficiency improvements such as LED outdoor lighting · Repainting the development and making other “curb appeal” improvements.

In order for the Development to meet tax credit financing regulations, the property will be transferred to a new limited partnership that will continue to have Eden and EPA CAN DO as the general partners. The City must consent to its existing outstanding loan balance of approximately $1.2 million being assigned to a new Limited Partnership that will own the Development. The terms of the City loan and regulatory agreement would be modified so both the loan term and affordability covenants would extend for 55 years from the completion date - anticipated to be 2078. The city loan currently matures in 2044 and the regulatory agreement ends in 2065. Interest will be paid at the compounding Applicable Federal Rate (AFR). As of September 2022, the AFR is 3.14%. The interest rate in the existing loan agreement is 1% so the new rate would be more favorable to the City. The City also would need to agree to subordinate its loan and regulatory agreement to the loan of San Mateo County, and to the loans of the construction and permanent bank lender.

The Developer proposes to pay the costs of the City’s legal fees up to $50,000 to modify the existing loan documents. The developer also proposes to extend EPA CAN DO’s commercial lease in the project to 20 years -from 2040 to 2060 at the same rent of $1 per year. The value of this lease extension is estimated at over $2,100,000 for 20 years based on market rents for comparable office space in East Palo Alto.

The new financing would be underwritten at a 1.15 debt service coverage ratio.

City Staff Proposal in Response
City staff support the Developer’s intent to recapitalize and rehabilitate the Development in order to provide structural improvements to the building envelope, enhance the common areas and provide in-unit upgrades.

The proposed recapitalization presents an opportunity to bring additional resources into a 100% affordable housing development within city limits. Opportunities to recapitalize and substantially renovate existing affordable housing developments in California have become increasingly rare in the last two years given the competitive landscape for both 4% and 9% tax credits.

3.2 Packet Pg. 16
The City recognizes the need for successful developers, such as Eden Housing and EPA CAN DO, to recapitalize and substantially renovate existing affordable developments to ensure that they remain preserved and affordable. The proposed refinancing offers the following benefits to the Developer and the City:
· Extends the long-term affordability covenants for a new 55-year term beginning at the issuance of the certificate of occupancy; this represents a 13-year extension of the affordability covenants from 2065 to 2078.
· Extends the loan terms 38 years, from 2044 to 2078, at a higher interest rate. · Invests over $7 million in construction costs into the project to ensure the units are preserved as long-term affordable housing with necessary repairs and renovations. · Allows for EPA CAN DO, an important community serving institution, to have a commercial lease at the site extended for 20 years, until 2060, at a nominal rent, assisting EPA CAN DO in remaining financially viable.
· The Developer will pay the City cost-recovery up to $50,000 for the City’s legal expenses to facilitate the recapitalization.

To conclude and summarize, the transaction will preserve the affordability restrictions of the units at Nugent Square by extending the duration of the City’s loan and the regulatory agreement. The refinancing also will ensure the affordable units continue to provide quality housing for the residents by improving the existing units. The lien position of the City’s loan will remain in the current position (subordinate to other existing debt including the County’s loan although the County loan amount will increase).

The table below reflects this proposed breakdown of the Developer’s new financing. All numbers are preliminary and subject to change due to potential changes in financing terms.

3.2 Packet Pg. 17
Table 1

3.2 Packet Pg. 18
Next Steps
The Developer intends to close on the recapitalization in November 2022, begin construction in December 2022 and complete construction in October 2023.

Fiscal Impact
The increased interest rate from 1% to 3.14% will result in a larger interest payment and revenue for the City at loan maturity. There is no other net fiscal impact for the City.

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.

3.2 Packet Pg. 19
Photos:

View from University Avenue
View From Weeks Street
Attachments
A. Resolution
B. March 17, 2020 Staff Report

3.2 Packet Pg. 20
RESOLUTION NO.

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

AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE

AMENDMENTS TO EXISTING CITY LOAN AND REGULATORY AGREEMENTS

RELATING TO THE REFINANCING OF THE NUGENT SQUARE APARTMENTS WHEREAS, in 2003, the Former Redevelopment Agency of the City of East Palo Alto (the "Former Agency") provided a loan of $1,100,000 Nugent Square Partners, L.P., a California limited partnership (the "Partnership") for the development of the Nugent Square Apartments, a 32-unit apartment complex affordable to very low and extremely low-income households ("Project"); and
WHEREAS, Eden Housing Inc., a California nonprofit public benefit corporation ("Eden") and East Palo Alto Community Alliance and Neighborhood Development Corporation, a California nonprofit public benefit corporation ("EPA CAN DO" and collectively with Eden, the "Developer") are the general partners of the Partnership; and WHEREAS, the City of East Palo Alto ("City") elected to be the housing successor to the Former Agency and succeeded to all of the rights and obligations of the Former Agency; and
WHEREAS, in 2020 the City approved a refinancing of the permanent loan financing the Project that included extending the affordability restrictions benefiting the City by five years; and
WHEREAS, the Developer is now proposing to recapitalize the Project using Low Income Housing Tax Credits and additional funds from the County of San Mateo that will provide funding for rehabilitation and upgrades to the Project that will require that the Project be transferred from the Partnership to a new limited partnership of which Eden and EPA CAN DO will be the general partners; and
WHEREAS, the City and Developer have negotiated mutually beneficial terms for the Project’s refinancing including:

1. The City’s regulatory agreement will be extended to provide a 55-year term from the date of the refinance.

2. The existing City Loan term will be extended from a 40-year term to a 55-year term from the date of the refinance.

3.2.a
Packet Pg. 21
Attachment: Resolution (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave)

3. The interest rate on the City loan will be increased from 1% to the current applicable federal rate, which is projected to be 3.14%.

4. The new limited partnership owning the Project will extend EPA CAN DO's current commercial lease for an additional 20 years, until 2060 at a nominal rent of $1 per year.

5. The Developer will pay the City's legal costs to process this transaction in an amount not to exceed $50,000.

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

2. Negotiate and execute subordination agreements subordinating the City's loan and regulatory agreement to construction and permanent financing, in a form approved by the City Attorney

3. Execute such other documents and to take such other actions necessary to complete the refinancing of the Project, subject to the approval of the City Attorney.

PASSED AND ADOPTED this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

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

3.2.a
Packet Pg. 22
Attachment: Resolution (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: March 17, 2020
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Rachel Horst, Housing Project Manager
Patrick Heisinger, Assistant City Manager
SUBJECT: City Council Consideration of Nugent Square Refinance Recommendation
Adopt a resolution authorizing the City Manager to:

1. Negotiate and execute amendments to the City’s existing loan and regulatory agreements to effectuate the refinancing of the Nugent Square Apartments, in a form approved by the City Attorney.

2. Negotiate and execute subordination agreements subordinating the City's loan and regulatory agreement to the new financing, in a form approved by the City Attorney.

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

Priority No. 6: Create a Healthy and Safe Community
Background
In 2003, the Redevelopment Agency of the City of East Palo Alto (City) provided a loan of $1,100,000 (City Loan) to the partnership, Nugent Square Partners, LP, controlled by Eden Housing, Inc. and EPA CAN DO (jointly, the Developer) for the development of Nugent Square, a 32-unit affordable housing complex, of which 31 units were constructed and setaside for very-low and extremely-low income households, with 1 unit as the employee’s unit (collectively, the Project). The City Loan and Regulatory Agreement that income-restricts the Property has an initial term of 55-years from completion of the Project; the City Loan matures in 2044.

In 2004, the Developer completed the Project and since that time has been managing the

6.11 Packet Pg. 100

3.2.b
Packet Pg. 23
Attachment: March 17, 2020 Staff Report (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave) Project in accordance with the terms and conditions of all lenders who provided financing. In January 2020, the Developer notified the City of their intent to refinance the Project’s senior loan. Please see Attachment 2 for a letter from the Developer.

The purpose of this staff report is to: 1) provide the City Council with an understanding of the Developer’s proposal and the staff responses; 2) outline the steps required to complete the proposed refinancing; and 3) obtain feedback from the City Council regarding the specific deal terms of the proposed refinancing.

Analysis
Developer Proposal
By refinancing the Project at this time, the Developer aims to accomplish the following:
avoid approximately $500,000 in high yield maintenance fees; secure a lower interest rate of 4.26% (compared to current 6.73%); and reduce existing debt to the Project.

Through the refinance process, the Developer seeks to secure a new loan of $1,826,754, with an interest rate at 4.26%, which requires monthly interest-only payments, for an 18-month term with a 12-month option to extend. The Developer proposes the following allocations:
$1,566,000 Existing first mortgage repayment (in its entirety) $148,000 Other transaction-related costs, including City legal fees $50,000 Payment on City Loan
$50,000 Payment on subordinate loan with County of San Mateo The Developer is not requesting cash-out proceeds from the refinance. The new financing would be underwritten at a 1.15 debt service coverage ratio.

As a lender to the Project, the City must consent to the transaction before the Developer may take steps to refinance. As noted above, through the refinance process, the Developer will seek to lower the Project’s interest rate from 6.73% to 4.26%. This interest rate reduction would result in approximately $85,000 in additional annual cash flow from avoided debt service payments. The Developer proposes to set aside this additional cash flow in the replacement reserve account to make necessary short-term capital improvements to the Project.

The Developer intends to evaluate the possibility for resyndication for rehabilitation of the Project in or around 2021/22. Given recent changes at the State level, the Developer is uncertain if the Project is competitive to receive an allocation for new 4% tax credits.

Concurrently, the Developer will evaluate alternative financing solutions for the rehabilitation.

The Developer is seeking to obtain City approval in a timely manner to avoid the high yield maintenance costs that would be due at close of resyndication and create a negative financial burden on the Project if the Developer does not complete the refinance process within the allowable period of 02/01/2020 to 04/30/2020.

City staff support the Developer’s intent to refinance in order to secure a lower interest rate, avoid yield maintenance, and preserve property level cash flow for capital improvements and as a source for the rehabilitation.

6.11 Packet Pg. 101

3.2.b
Packet Pg. 24
Attachment: March 17, 2020 Staff Report (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave) City Staff Proposal in Response
The potential refinancing of the Project presents an opportunity for the City to negotiate key deal terms with the Developer. City staff finds several of the deal terms originally offered by the Developer, as outline above, to be reasonable. The City recognizes the need for successful developers, such as Eden Housing and EPACANDO, to refinance properties to ensure that they remain preserved and affordable. The propose refinancing is beneficial for the City and the Project because it extends the affordable agreement, and the annual saving from debt service will be used for physical improvements to the Project, to repay a portion of the City Loan, and to support affordable housing developers like Eden Housing and EPACANDO.

The draft deal terms proposed by City staff allow for shared benefits for both City and Developer, including the following elements:

1. The regulatory agreement will be extended for 5 years, thus guaranteeing that the affordable units within the Project remain affordable for a longer time period.

2. The City should receive a loan repayment of $50,000.

3. The County of San Mateo should receive a loan repayment of $50,000.

4. The Developer will pay the City a one-time $10,000 fee to cover the City’s legal expenses to facilitate the re-finance.

The table below reflects this proposed breakdown of the Developer’s new financing. All numbers are preliminary and subject to change due to potential changes in financing terms.

USES New First
Mortgage
% of
Total
Total $1,826,754 100%
Repayment of Existing First Mortgage $1,566,354 85%
Transaction related costs $148,400 8%
Partial Repayment of City Loan $50,000 3%
Partial Repayment of County Loan $50,000 3%
Contingency $12,000 1%
Surplus/(Deficit) $0
Next Steps
City staff intends to return to the City Council in April, to discuss and seek authority for the necessary actions to complete the refinance. The Developer intends to close on the loan by end of April 2020.

Fiscal Impact
If approved, the City would receive an early loan payment of $50,000.

6.11 Packet Pg. 102

3.2.b
Packet Pg. 25
Attachment: March 17, 2020 Staff Report (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave) City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.

Attachments

1. Resolution

2. Letter to City of East Palo Alto

6.11 Packet Pg. 103

3.2.b
Packet Pg. 26
Attachment: March 17, 2020 Staff Report (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave) RESOLUTION NO.

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

AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AMENDMENTS TO

EXISTING CITY OF EAST PALO ALTO LOAN AND REGULATORY AGREEMENTS RELATING TO

THE REFINANCING OF THE NUGENT SQUARE APARTMENTS
WHEREAS, in 2003, the former Redevelopment Agency of the City of East Palo Alto ("Former Agency") provided a loan of $1,100,000 (“City Loan”) to the partnership of Nugent Square Partners, LP, controlled by Eden Housing, Inc. and EPACANDO (jointly, “Developer”) for the development of the Nugent Square Apartments, a 32-unit affordable housing complex, of which 31 units were constructed and set aside for very low- and extremely low-income households, with one unit set aside as the employee’s unit (collectively, “Project”); and WHEREAS, the City of East Palo Alto (“City”) elected to be the housing successor to the Former Agency and succeeded to all of the rights and obligations of the Former Agency; and WHEREAS, in February 2020, the Developer notified the City of their intent to refinance the Project which requires City consent and/or approval; and WHEREAS, the City and Developer have negotiated mutually beneficial terms for the Project’s refinancing including:

1. The City’s Regulatory Agreement will be extended an additional 5 years;

2. All other terms of the City’s Regulatory Agreement and City Loan will remain unchanged;

3. The City will receive a loan repayment of $50,000 and the County of San Mateo will receive a loan repayment of $50,000; and

4. The Developer will pay the City a one-time $10,000 fee to cover the City’s legal expenses to facilitate the re-finance.

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

1. Negotiate and execute amendments to the City’s existing loan and regulatory agreements to effectuate the refinancing of the Nugent Square Apartments, in a form approved by the City Attorney.

2. Negotiate and execute subordination agreements subordinating the City's loan and regulatory agreement to the new financing, in a form approved by the City Attorney.

PASSED AND ADOPTED this 17th day of March 2019, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

Regina Wallace-Jones, Mayor

6.11.a
Packet Pg. 104 Attachment: Resolution (1155 : Nugent Square Refinance)

3.2.b
Packet Pg. 27
Attachment: March 17, 2020 Staff Report (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave) ATTEST: APPROVED AS TO FORM:

Walfred Solorzano, City Clerk Rafael E. Alvarado Jr., City Attorney

6.11.a
Packet Pg. 105 Attachment: Resolution (1155 : Nugent Square Refinance)

3.2.b
Packet Pg. 28
Attachment: March 17, 2020 Staff Report (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave)

6.11.b
Packet Pg. 106 Attachment: Letter to City of East Palo Alto (1155 : Nugent Square Refinance)

3.2.b
Packet Pg. 29
Attachment: March 17, 2020 Staff Report (2402 : Renovation and Recapitalization of Nugent Square Apartments at 2361 University Ave)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Jessica Caballero, Management Analyst II
Elena Lee, Planning Manager
SUBJECT: On-Call Arborist Consulting Services for Tree Evaluations on Private Property Recommendation
Adopt a Resolution authorizing the City Manager to execute a consultant contract for on-call Arborist Consulting services for tree evaluations on private property with Davey Resource Group, Inc. (DRG) in an amount not-to-exceed $40,000 for a period up to two-years with an option for a one-time extension of two-years and an additional $40,000.

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 Priority No. 6: Create a Healthy and Safe Community
Background
On April 19, 2022, the East Palo Alto City Council adopted an Urban Forest Master Plan (UFMP) to provide a roadmap towards a shared vision for the future of the city’s tree canopy and amendments to the Municipal Code related to tree regulations. As directed by City Council, City staff and consultants reviewed all current city ordinances related to trees and concluded one clear ordinance for public trees and one for private trees was preferable. As a part of that City Council direction and adoption of updated ordinances, an on-call tree arborist to assist City staff (including Public Works and the Community and Economic Development (CED) Departments) to carry out the UFMP is being hired.

On July 13, 2022, City staff issued a request for proposal for on-call professional arborist consulting services to advise and assist the Planning Division regarding planning applications.

3.3 Packet Pg. 30
The consultant will make recommendations to staff regarding tree removal applications and landscaping proposals, General Plan policies, and best management practices. Additionally, the consultant will make recommendations on development applications, conduct site visits and inspections, attend public hearings when necessary, and provide other general on-call arborist consulting to City staff pertaining to the UFMP and the tree ordinances.

Authorization is sought for the City Manager to execute a consultant contract with the selected consultant to provide on-call arborist consulting services to the Community and Economic Development Department for a period up to two-years from contract execution with an option for a one-time extension of two-years and an additional $40,000 that can be renewed administratively.

Analysis
The City sought a qualified arborist consultant to assist with several tasks to carry out the UFMP and the implementation of the revised tree regulations. These tasks include but are not limited to:
• Review plans and arborist reports/landscape unit values submitted for development proposals. Provide landscaping recommendations based on city ordinances, General Plan policies and best management practices. Assist City staff in evaluating proposed tree removals and provide recommendations if the proposed removal and replacement trees meet the requirements of the city ordinances.
• Assist City staff and applicant with recommendations for replacement trees as mitigation for the removal of trees.
• Assist City staff with clear and concise requirements to address removal of trees that have been deemed hazardous or in poor health. Provide staff with recommendation on whether the tree should be removed based on city requirements and best management practices.

As of July 29, 2022, a total of one bid was received, summarized in the table below.

No. Company Name Hourly Rate
1 Davey Resource Group, Inc.
(DRG)
• Certified Arborist with Tree Risk
Assessment Qualification
$115/Hour (minimum charge time
is two hours).

DRG has successfully provided similar on-call arborist consulting services throughout the country, including numerous municipalities in California, such as the Cities of Menlo Park, Palo Alto, and Saratoga and the County of Contra Costa.

DRG can be available within 48-hour notice and has the ability to scale up to additional staff as needed. DRG is a wholly owned subsidiary of The Davey Tree Expert Company, which was established in 1880, and is licensed to practice in California. The City of East Palo Alto is committed to tree canopy preservation and growing a vibrant urban forest. DRG is aligned with the City’s goals. DRG has the qualifications and expertise the City needs to provide on3.3 Packet Pg. 31
call arborist consulting services.

Contingent upon completing all requirements of the contract specifications, staff recommends the City Council authorize the City Manager to execute a contract with Davey Resource Group, Inc. to provide on-call arborist consulting services for an initial cost of up to $40,000 for a period up to two-years from contract execution with an option for a one-time extension of two years and an additional $40,000 that can be renewed administratively if performance is met.

Fiscal Impact

The initial not-to-exceed cost of $40,000 for on-call arborist consulting services is unbudgeted and will be supported by either the General Fund for single-tree removal permits or by the City’s Pass-Through Agreements for major development projects. If performance is met, the additional $40,000, for a revised not-to-exceed cost of $80,000, will continue to be supported by the same funding sources.

For single tree removal permits, Planning Staff anticipate 30 tree removal permits over the next two years. The current tree removal fee of $375 for 1-2 trees in the City of East Palo Alto’s Comprehensive Fee Schedule effective July 1, 2022, is sufficient to cover the cost of these activities and will result in a more efficient use of staff time. To encourage compliance, the City Council approved tree removal permit fees for less than full cost recovery during the 2020 Comprehensive Fee Schedule. Staff do not recommend increasing the fee at this time in part to continue to encourage compliance, especially with the recently approved enhanced tree protection ordinance for private trees and Urban Forest Master Plan.

For major development projects, the existing tree removal fee is $802 for 3+ trees, which is sufficient to cover the cost of review activities for major development projects related to tree removals. The cost for major development projects will be funded and recovered through the pass-through agreements with applicants.

Public Notice
The public was provided notice of this agenda item 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
A. Resolution

3.3 Packet Pg. 32
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 CONTRACT WITH DAVEY RESOURCE GROUP, INC. TO PROVIDE ON-CALL ARBORIST CONSULTING SERVICES FOR TREE

EVALUATIONS ON PRIVATE PROPERTY
WHEREAS, on April 19, 2022, the East Palo Alto City Council adopted an Urban Forest Master Plan (“UFMP”) to provide a roadmap towards a shared vision for the future of the city’s tree canopy and amendments to the Municipal Code for tree regulations; and WHEREAS, as a part of that City Council direction and adoption of updated ordinances, staff were directed to hire an on-call tree arborist to assist City staff in carrying out the UFMP; and WHEREAS, on July 13, 2022, staff issued a request for proposals for professional as-needed arborist consulting services to primarily advise and assist the Planning division within the Community & Economic Development Department; and
WHEREAS, on July 29, 2022, the City of East Palo Alto (“City”) received one bid by email that was evaluated by staff; and
WHEREAS, staff determined Davey Resource Group, Inc (“DRG”) has the desired qualifications, technical knowledge, and expertise to provide on-call arborist consulting services to assist City staff in carrying out the UFMP; and
WHEREAS, the on-call arborist consulting services will be supported by the General Fund for single-tree permits and by Pass-Through Agreements for major development projects.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes the City Manager to execute a consultant contract with DRG for on-call arborist consulting services, in a form approved by the City Attorney, for an initial cost of up to $40,000 for a period up to two-years from contract execution with an option for a onetime extension of two years and an additional $40,000 that can be renewed administratively if performance is satisfactory.

3.3.a
Packet Pg. 33
Attachment: Resolution (2400 : On-Call Arborist Consulting Services for Tree Evaluations on Private Property) 2 of 2
PASSED AND ADOPTED this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

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

3.3.a
Packet Pg. 34
Attachment: Resolution (2400 : On-Call Arborist Consulting Services for Tree Evaluations on Private Property)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 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: West Coast Arborists Contract Amendment for $50,000 - Public Trees Recommendation
Adopt a Resolution approving a contract amendment with West Coast Arborists, Inc. for an additional amount of $50,000 for tree maintenance services, for a total contract amount of $150,000.

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

Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 6: Create a Healthy and Safe Community
Background
During the FY 22/23 budget discussion, the City Council approved an additional $50,000 for public tree maintenance and pruning services. This increase is consistent with City Council direction Resolution 77-2022.

Analysis
According to Urban Forestry Master Plan that was adopted on April 19, 2022 the budget of $150,000 should be allocated annually for tree pruning and removal contract services.

Based on the existing tree inventory from 2013 and the current pruning costs for grid pruning, the project team estimates that moving to a 7-year grid pruning cycle would be require an annual budget allocation of $120,000. This would include contract pruning and an additional

3.4 Packet Pg. 35
$30,000 for emergencies/ out-of-cycle pruning.

The contractor hired to conduct grid pruning can also update tree inventory information as part of the scope of work, and provide the City with an up-to-date inventory of all public trees, as recommended by the Urbon Forestry Master plan.

Fiscal Impact
The current contract with West Coast Arborists for tree pruning services is not to exceed $100,000 annually. With additional amount of $50,000, the total annual contract amount would be a not to exceed amount of $150,000.

The amount of $150,000 is budgeted in the Public Works Maintenance Division FY 22/23 operational budget from City’s General Fund.

Attachments
A. Increase Contract amount of $50,000 with West Coast Arborist

3.4 Packet Pg. 36
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT AMENDMENT WITH WEST COAST ARBORISTS TO INCREASE THE CONTRACT BY $50,000

ANNUALLY FOR TREE MAINTENANCE SERVICES FOR A TOTAL CONTRACT AMOUNT OF $150,000
WHEREAS, the City currently has a contract with West Coast Arborists, Inc. for tree maintenance services for $100,000 annually through March 31,2024; and WHEREAS, according to Urban Forestry Master Plan that was adopted on April 19, 2022, an annual budget of $150,000 should be allocated annually for tree removal and pruning services; and
WHEREAS, during FY 2022-2023 budget discussions, the City Council approved an additional $50,000 for public trees maintenance and services; and

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes the City Manager to execute a contract amendment with West Coast Arborists to increase the contract by $50,000 annually for tree maintenance services to not to exceed $150,000.

PASSED AND ADOPTED this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

3.4.a
Packet Pg. 37
Attachment: Increase Contract amount of $50,000 with West Coast Arborist (2373 : Increase contract amount of $50,000 with West Coast

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 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: 4th Quarter Treasury Report FY2021-22
Recommendation
Accept and file the Treasury Report for the fourth quarter ended June 30, 2022.

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
Pursuant to Section 53646 of the Government Code of the State of California, the City Treasurer may submit a quarterly report to the City Council regarding the funds and investments of the City. The Finance staff provides quarterly reporting to the City Council indicating the summary of investments for the period and denoting the ability of the City to meet its expenditure requirements for the next three months.

Analysis
This report covers primary cash and investments of the City. For investment purposes, City cash is pooled, except for bond proceeds, which are held by a trustee. The City does not have, nor is it legally required to have, separate bank accounts for each individual fund. However, all cash is segregated in the City’s accounting records.

As of June 30, 2022, the total deposit value of cash and investments equals $116,928,476.

The book value of deposits equals $116,065,816 including outstanding checks and other minor adjustments of $862,660. Compared to the prior quarter ended in March 2022, the FY 2021-22 fourth quarter (Q4) ending on June 30, 2022 total book value balance increased approximately $5.3M. The overall increase is mainly due to an increase in General Fund cash ($4.5M) attributed to approximately $4.2 million property tax revenue receipts in April and May.

3.5 Packet Pg. 38
Summary June 30, 2022
Average
Maturity
(YRS)
Average
Earnings
(QTR)
Deposit and
Book Value Market Value
Petty Cash n/a n/a $ 10,800 $ 10,800
Bank Checking n/a 0.98% $ 3,300,410 $ 3,300,410
Local Agency Investment Fund 0.85 0.69% $ 10,013,265 $ 9,884,349 San Mateo County Pool Investment 1.52 1.08% $ 103,604,001 $ 100,371,556 $ 116,928,476 $ 113,567,115
The book market value totals $112,704,455 including an unrealized loss of $3,361,361 reflecting overall increases in treasury yields during the calendar year. The table below reflects changes in rates since June 30, 2021 and compared to the previous month of May 2022 demonstrating an increase in both short-term and long-term Treasury yields from May 31, 2022 as well as from a year ago flattening of longer term yields across the curve.1:

Jun-22 May-22 Jun-21
6-month Treasury Bill 2.44 1.60 0.06
2-year Treasury Note 2.92 2.53 0.25
5-Year Treasury Note 3.01 2.81 0.87
The City’s portfolio is invested in the Local Agency Investment Fund (LAIF) and the San Mateo County Treasurer’s Pool. LAIF is a highly liquid investment pool operated by the State Treasurer, and the City has same-day access to the funds. The County Treasurer’s Pool is less liquid, and the maturity and diversification of the underlying securities which in normally functioning markets is generally expected to result in higher yield. City staff does not control or direct the underlying investment of funds and each pool is managed by the respective agency’s investment staff and oversight committee or board. March to June over quarter LAIF yields increased from 0.29% to 0.69% and San Mateo County Pool average gross pool earnings increased from 0.945% to 1.083%. San Mateo County Pool earnings are quoted on gross earnings.

Both LAIF and the County Pool fair value factors in the fourth quarter have dropped from

0.9888 to 0.9871 and from 0.9770 to 0.9688, respectively compared to the previous quarter.

This is mainly due to the increase trend in Treasury yields indicated in the table above.

Pursuant to California Government Code 53646 the City shall meet its expenditure requirements for the next six months.

Fiscal Impact
This report is informational.
1 Daily Treasury Yield Curve Rates, Treasury.gov

3.5 Packet Pg. 39

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Batool Zaro, Assistant Civil Engineer
Humza Javed, City Engineer
SUBJECT: Grant Application for TA Cycle 6 Bike/Ped Program Funding – East Bayshore Sidewalk Improvements
Recommendation
Adopt a resolution supporting the East Bayshore Road Pedestrian and Bicycle Safety Improvements Project, authorizing the submittal of an application to the San Mateo County Transportation Authority for Cycle 6 Pedestrian and Bicycle Program Funding, and submitting a letter of support 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. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
The San Mateo County Transportation Authority (TA) issued a Call for Projects for the Cycle 6 Measures, A and W, Pedestrian and Bicycle Program on August 4, 2022. The goal of the program is to fund projects that improve bicycling and walking accessibility and safety in San Mateo County, helping to encourage more residents to participate in active transportation.

Staff is proposing to submit an application to implement safety improvements along East Bayshore Road from University Avenue to Menalto Avenue. There have been two pedestrian fatalities within the project limits within the past two years.

Staff submitted a “Notice of Intent to Submit” and had a “Pre-submittal Meeting” with TA Staff recently.

3.6 Packet Pg. 40
Analysis
The improvements would include the installation of sidewalks, bikeways, traffic calming measures, and green infrastructure measures.

Staff is requesting $400,000 from the TA for the East Bayshore Road Pedestrian and Bicycle Safety Improvements Project. The requested funding is to prepare the Plans, Specifications, and Estimates for the pedestrian and bicycle safety improvements along East Bayshore Road from University Avenue to Menalto Avenue.

Fiscal Impact
No fiscal impact associated with submitting the application. If the project is awarded, a five percent city match in the amount of $20,000 would be required for the $400,000 requested amount.

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 Co. Library located at 2415 University Avenue, East Palo Alto.

Attachments
A. TA Application - Resolution
B. East Palo Alto Support Letter_Mayor_TA Application

3.6 Packet Pg. 41
Resolution No. XX-2022 1
RESOLUTION NO. X

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

SUPPORTING THE EAST BAYSHORE ROAD PEDESTRIAN AND BICYCLE SAFETY

IMPROVEMENTS PROJECT AND AUTHORIZING STAFF TO SUBMIT AN APPLICATION TO THE SAN MATEO COUNTY TRANSPORTATION AUTHORITY FOR CYCLE 6 PEDESTRIAN AND

BICYCLE PROGRAM FUNDING
WHEREAS, the City of East Palo Alto has identified pedestrian and bicycle safety concerns on East Bayshore Road from University Avenue to Menalto Avenue; and WHEREAS, the City has developed the East Bayshore Road Pedestrian and Bicycle Safety Improvements Project to implement measures to improve safety for pedestrians and bicyclists; and WHEREAS, it will cost $420,000 to prepare the Project Plans, Specifications, and Estimates; and the City seeks $400,000 for the Project; and
WHEREAS, the San Mateo County Transportation Authority (TA) issued a Call for Projects for the Cycle 6 Measures A and W Pedestrian and Bicycle Program on August 4, 2022; and WHEREAS, the TA requires the City Council to adopt a resolution:

1. Supporting the Project and application for $400,000 in TA Measures A and W Pedestrian and Bicycle Program funds for Project;

2. Committing to the completion of the Project, including the commitment of matching funds in the amount of $20,000 needed for implementation;

3. Certifying that any funds awarded by the TA will be used to supplement existing funds for program activities, and will not replace existing funds or resources; and

4. If funds are awarded, authorizing the City Manager or designee, to sign a funding agreement or memorandum of understanding (MOU) with the TA for TA Measures A and W Pedestrian and Bicycle Program funding for the Project and to take any other actions necessary to give effect to this resolution.

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

1. Directs staff to submit an application to the San Mateo County Transportation Authority for Measures A and W Pedestrian and Bicycle Program funds for $400,000 for the East Bayshore Road Pedestrian and Bicycle Safety Improvements Project;

2. Authorizes the City Manager, or designee, to execute a funding agreement or MOU with the San Mateo County Transportation Authority to encumber TA Measures A and W Pedestrian and Bicycle Program funds;

3.6.a
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Attachment: TA Application - Resolution (2401 : Grant Application for TA Cycle 6 Bike/Ped Program Funding – East Bayshore Sidewalk Resolution No. XX-2022 2

3. Commits to the completing the Project, including contributing $20,000 of matching funds needed for Project implementation, if the requested TA funds are awarded;

4. Certifies that any funds awarded by the TA will be used to supplement existing funds for program activities, and will not replace existing funds or resources; and

5. Authorizes the City Manager, or designee, to take any other actions necessary including signing of funding documents, to give effect to this resolution.

6. Commits to submitting a letter of support for the project PASSED AND ADOPTED this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Rubin Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

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

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Attachment: TA Application - Resolution (2401 : Grant Application for TA Cycle 6 Bike/Ped Program Funding – East Bayshore Sidewalk September 12, 2022
San Mateo County Transportation Authority (TA)
RE: Letter of Support for the City of East Palo Alto TA Application To Whom It May Concern,
On behalf of the City of East Palo Alto, I am writing to express our support for the City’s San Mateo County Transportation Authority (TA) Cycle 6 Pedestrian and Bicycle Program Grant Application for improvements on East Bayshore Road. The grant seeks funds to prepare project plans, specifications, and estimates for pedestrian and bicycle improvements on East Bayshore Road from Menalto Avenue to University Avenue.

East Bayshore Road is a City connector street, and improvements along the street would help provide a better connection for residents and community members in the Palo Alto Park Area to the planned University Avenue Pedestrian Overcrossing. Traffic Calming efforts to slow speed and provide safe and convenient pedestrian access, especially along this street is a key priority for the City. East Bayshore Road also has large volumes of vehicle traffic utilizing the roadway to access University Avenue and Willow Road.

The project supports our City’s Vision Zero goals of fatal and severe injury to zero. These improvements will get the City closer to our goal of eliminating traffic fatalities and reducing the number of non-fatal injury collisions by 50% by 2030. Two pedestrian fatalities occurred within the project area within the past 2-3 years.

We strongly support the TA Grant application for pedestrian and bicycle safety improvements on East Bayshore Road.

Sincerely,
Ruben Abrica
Mayor, City of East Palo Alto

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Attachment: East Palo Alto Support Letter_Mayor_TA Application (2401 : Grant Application for TA Cycle 6 Bike/Ped Program Funding – East

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Azalea Renfield, Assistant to the City Manager
SUBJECT: Update on the Chief of Police Recruitment
Recommendation
It is recommended that the City Council:

1. Accept staff’s report on the status of the Chief of Police recruitment; and

2. Direct the Interim City Manager to publish a future informational report complete with each Councilmember’s appointee to serve on the five-member community panel for the recruitment of the Police Chief.

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

Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 6: Create a Healthy and Safe Community
Background
On October 2, 2018, the City Council adopted Resolution 5034 (Attachment 1), defining the selection process for the Chief of Police.

On November 5, 2021, Albert Pardini announced his pending retirement as the Chief of Police.

On February 1, 2022, City Council authorized the City Manager to enter into an agreement with Koff & Associates to provide recruitment services for the positions of City Manager and Police Chief. While both positions are currently underway, the Police Chief recruitment requires a formal process that involves community and further direction from City Council.

To reiterate, the formal process for Police Chief has the following steps:

1. The City Council shall select a recruitment firm to perform the recruitment for the position of Chief of Police. Once selected, the City Council, with Human Resources (HR) support shall work with the recruitment firm to develop a recruitment brochure.

3.7 Packet Pg. 45
This step has been completed, please see Attachment 2 for a copy of the recruitment brochure.

2. HR staff and the recruitment firm shall conduct a review of all applications received and reduce the candidate pool to the top 12 candidates.

3. HR staff and the recruitment firm shall:
a. interview and screen the top 12 candidates
b. provide the City Council the top 12 applications
c. produce a confidential closed session report recommending the top six candidates for City Council consideration.

4. The City Council shall review the top 12 applications, consider HR and recruitment firm confidential closed session report including recommendations, and after deliberation in closed session will select the top six candidates.

5. HR staff shall schedule two interview panels of:
a. law enforcement executives selected by HR staff and recruitment firm b. five community members appointed at the sole discretion of each Council member

6. Each panel will provide to HR staff their interview and rating sheets including comments identifying their top three candidates. HR staff will provide all the material from the panels, in a confidential closed session report to the City Council.

7. The City Council shall meet in closed session to:
a. review the HR confidential closed session report and consider the recommendation of the two panels
b. interview the top six candidates
c. select the top three candidates for City Manager consideration.

8. The City Manager shall interview the top 3 candidates and make the final hiring decision.

The purpose of this staff report is to inform the City Council that the Interim City Manager is prepared to receive each Councilmember’s nominee who they would like to serve on the community interview panel.

Analysis
Staff recommends that each Councilmember forward their nominee via email to Azalea Renfield, Assistant to the City Manager, by Friday, September 30th.

For the purpose of transparency and assuming staff receives the five nominees by the September 30th, staff will publish an informational report on the October 18, 2022 City Council agenda to inform the community and other stakeholders on who each councilmember appointed.

Next Steps
It is expected that the recruiting period will conclude in mid-October and the interview process will commence in late-October/early November. The goal is to complete the process by the end of November.

Fiscal Impact
None

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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.

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
A. Reso 5034 Selection Process for Future Chiefs of Police B. 2022 East Palo Alto Police Chief Recruitment Brochure

3.7 Packet Pg. 47
RESOLUTION NO. 5034

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

DEFINING THE SELECTION PROCESS FOR THE CHIEF OF POLICE
WHEREAS, the East Palo Alto Municipal Code ("EPAMC") sets forth the authority conferred upon City officers and employees to perform the functions oftheir respective offices; and
WHEREAS, in 1983, the City Council adopted Ordinance No. 13 creating the Office ofthe City Manager and establishing the powers and duties ofthe position.

Ordinance No. 13 was subsequently amended and codified in Chapter 2.12 ofthe EPAMC; and
WHEREAS, in 1984, the City Council adopted Ordinance No. 49 creating the Police Department and the position ofChiefofPolice. Ordinance No. 49 is codified in Chapter 2.20 ofthe EPAMC; and
WHEREAS, the City Manager is the head administrative officer for the City of East Palo Alto, subject to the direction ofthe City Council. He is responsible for the administration ofthe affairs ofthe City, including management ofthe City's departments and divisions; and
WHEREAS, the ChiefofPolice is the director ofthe Police Department, is responsible for the performance ofthe functions ofthe department and reports to the City Manager; and
WHEREAS, on March 20,2018, the City Council adopted Ordinance No. 413 amending Chapter 2.20 ofthe East Palo Alto Municipal Code to authorize the City Manager to appoint the ChiefofPolice in consultation with the City Council; and WHEREAS, Ordinance No.413 and amended Chapter 2.20 provides that the form ofCity Council consultation shall be established by resolution ofthe City Council.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO hereby establishes the following process for selection ofa ChiefofPolice:

1. The City Council shall select a recruitment firm to perform the recruitment for the position ofChiefofPolice. Once selected, the City Council, with Human Resources HR) support shall work with the recruitment firm to develop a recruitment brochure.

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Attachment: Reso 5034 Selection Process for Future Chiefs of Police (2399 : Update on the Chief of Police Recruitment)

2. HR staffand the recruitment firm shall conduct a review ofall applications received and reduce the candidate pool to the top 12 candidates.

3. HR staffand the recruitment firm shall: a) interview and screen the top 12 candidates, b) provide the City Council the top 12 applications; and, c) produce a confidential closed session report recommending the top six candidates for City Council consideration.

5. HR staffshall schedule two interview panels of: a) law enforcement executives selected by HR staffand recruitment firm; and, b) five community members appointed at the sole discretion ofeach Council member.

6. Each panel will provide to HR stafftheir interview and rating sheets including comments identifying their top three candidates. HR staffwill provide all the material from the panels, in a confidential closed session report to the City Council.

7. The City Council shall meet in closed session to: a) review the HR confidential closed session report and consider the recommendation ofthe two panels, b) interview the top six candidates, and c) select the top three candidates for City Manager consideration.

8. The City Manager shall interview the top 3 candidates and make the final hiring decision.

PASSED AND ADOPTED this 2
nd day ofOctober, 2018, by the following vote:

AYES: ROMERO, GAUTHIER, MOODY, RUTHERFORD
NOES: NONE
ABSENT: ABRICA
l~jO. BSTAIN: NONE ·
SIGNED:

Ruben Abrica, Mayor
APPROVED AS TO FORM:

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Attachment: Reso 5034 Selection Process for Future Chiefs of Police (2399 : Update on the Chief of Police Recruitment)

CITY OF EAST PALO ALTO, CALIFORNIA
Chief of Police

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Attachment: 2022 East Palo Alto Police Chief Recruitment Brochure (2399 : Update on the Chief of Police Recruitment)

THE COMMUNITY
The City of East Palo Alto is a beautiful community located in the heart of the Silicon Valley, uniquely positioned to maximize its potential as a significant city in the region. Founded by speculators and farmers in 1849, the town was originally named Ravenswood.

In 1983, the residents decided to incorporate as East Palo Alto. The City features a rich heritage, a culturally diverse community, and a moderate climate. Centrally located with close proximity to the San Jose and San Francisco international airports, East Palo Alto brings a commitment to the environment and to expanding open space and park facilities. This is a friendly residential community with a small town, family-oriented atmosphere, with a progressive public school district and excellent private schools. Major nearby colleges include Stanford University, San Jose State University, San Francisco State University, and the University of San Francisco. The population is approximately 31,500 with an area of 2.5 square miles.

GOVERNANCE
The five-member City Council is the duly elected governing body of the City and are elected to serve four-year terms. To assist the Council and the citizens of the City in carrying out the duly established policies of the Council and to administer the needs of the City, the Council establishes the structure and procedures for governing and administering the City. The Council appoints the City Manager and City Attorney. The City Manager in turn appoints other City department heads, who are generally responsible for the proper function of their respective departments in carrying out the established policies of the Council and serving the needs of the citizens.

THE DEPARTMENT
The East Palo Alto Police Department is one of the most diverse police agencies in the Bay Area, reflective of our East Palo Alto community.

It is committed to working with our community to develop and implement crime prevention and deterrence strategies while enforcing local, state, and federal laws and are dedicated to investing in training and developing officers to deliver the best possible service to its community.

The City of East Palo Alto is poised for significant development within the next several years. With the increased development, the City can expect to invest in critical infrastructure such as a new Police and City buildings to meet anticipated needs. The Departments has a staff of 44, including 36 sworn officers.

THE POSITION
Reporting the City Manager, the Chief of Police plans, organizes, manages, and provides direction and oversight for all functions and activities of the Police department, including field operations, criminal investigations, communications, and management services; coordinates department activities with other City departments, officials, outside agencies, and the public; fosters cooperative working relationships among City departments and with intergovernmental and regulatory agencies and various public and private groups, and provides highly responsible and complex professional assistance and law enforcement expertise to the City Manager.

The incumbent is expected to exercise independent judgment, wisdom, common sense, and initiative in establishing efficient and effective departmental operations consistent with City Council objectives and administrative guidelines established by the City Manager. The incumbent must also function as a member of the City’s management team and participate actively in addressing issues of concern to the City which at times may not have a direct impact on their area of specialization. The City of East Palo Alto’s next Chief of Police will guide and lead the department through the changes that are occurring in policing throughout the nation. This position requires someone who understands and is prepared to define and implement strategies and methodology required for law enforcement to be successful today and in the future.

Example of job duties include but are not limited to the following:
• Assumes full management responsibility for all police programs, services, and activities.
• Plans, organizes, controls, directs, and participates in the patrolling of City streets, parks, commercial, and residential areas; reviews, analyzes, prioritizes, and coordinates response to emergency situations and observed or reported harmful or illegal conditions and activities by directing investigations or taking appropriate action; participates in responding to major incidents of crime; provides back-up and cover assistance to other officers as needed; detects, apprehends, arrests, and transports suspected or convicted criminals.
• Manages and participates in the development and administration of the department’s budget; directs the forecast of additional funds needed for staffing, equipment and supplies; directs the monitoring of and approves expenditures; directs and implements budgetary adjustments as necessary; periodically reviews and authorizes specifications for new or replaced equipment.

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Attachment: 2022 East Palo Alto Police Chief Recruitment Brochure (2399 : Update on the Chief of Police Recruitment) • Selects, trains, motivates, and directs department personnel; evaluates and reviews work for acceptability and conformance with department standards, including program and project priorities and performance evaluations; works with employees to correct deficiencies; implements discipline and termination procedures, including assignment and review of internal affairs investigations; responds to staff questions and concerns. • Promotes and ensures conformance to the City’s commitment to integrity and community policing strategies.
• Contributes to the overall quality of the department’s service by developing, reviewing and implementing policies and procedures to meet legal requirements and City needs; continuously monitors and evaluates the efficiency and effectiveness of service delivery methods and procedures; assesses and monitors the distribution of work, support systems and internal reporting relationships; identifies opportunities for improvement; directs the implementation of change.
• Develops cooperative working relationships and mutual aid agreements with representatives of other local public safety departments; coordinates activities with other law enforcement and public service agencies, including participation in high profile or complex investigations.
• Provides highly complex staff support to the City Manager and City Council on issues related to law enforcement and community policing activities; provides advice to City staff, external organizations, community groups, and the public on matters related to areas of expertise.
• Monitors legal, regulatory, technological, and societal changes and court decisions that may affect the work of the department; determines equipment acquisition, training programs and procedural changes to ensure retention of qualified staff and the provision of services to the community in an effective, efficient and economical manner.
• Represents the department to other City departments,
elected officials, and outside agencies; explains and interprets departmental programs, policies, and activities; negotiates and resolves significant and controversial issues.
• Directs and participates in the preparation and maintenance of various records, reports, and files related to crimes, investigations, traffic accidents, dispatch, cases, staff, and department activities; prepares periodic, mandated, and special reports for the City and State; composes press releases, articles, and other publications concerning law enforcement investigations and other public safety issues.
• Coordinate, direct, and participate in the inspection of major crime scenes to identify and collect potential and actual evidence; observes, interviews, and interrogates victims, witnesses, and suspects; analyze cases and identify trends for the adoption of best practices and improved procedures.
• Assess technology advances in law enforcement and
opportunities for the East Palo Alto P.D.
• Attends, conducts, and participates in various meetings as assigned; attends and participates in various conferences and training sessions; prepares and delivers oral presentations concerning department activities, needs, and issues.
• Provides first aid, cardiopulmonary resuscitation (CPR) and rescue services at crime scenes, accidents, and other emergency situations as needed.
• Conducts special projects as required; effectively presents data and conclusions to City management, elected officials, and external agencies.

THE IDEAL CANDIDATE
The ideal candidate will be a seasoned professional with demonstrated success working through leadership transition in a diverse community while leading a law enforcement agency effectively in proactive community policing. The successful candidate will be open-minded, possess high moral character and have excellent communication and interpersonal skills necessary to build positive working relationships and partnerships at all levels within the department, with other City departments and the entire community. The Chief will provide consistent communication and outreach to East Palo Alto residents, businesses, and other key stakeholders; promote collaborative problem solving, involve citizens in fighting crime and establish successful relationships with outside organizations. The new Chief of Police will exemplify integrity and professionalism, while promoting service-oriented policing, engagement, and partnerships throughout the city and within the department. The ability to lead by example, be a team player and instill accountability while treating employees and citizens equitably and with respect will be essential to success. Qualified candidates will be open to input and have an inclusive problem-solving approach and embrace workforce diversity and inclusion.

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Attachment: 2022 East Palo Alto Police Chief Recruitment Brochure (2399 : Update on the Chief of Police Recruitment) It is imperative that City of East Palo Alto’s Chief of Police understands the necessary relationship with the community and takes the opportunity to listen to and address community concerns with empathy, transparency, and understanding. Residents are engaged and having a Chief that is equally engaged and has a sense of being a part of this community while being open and present is critical for success in this position. East Palo Alto has a diverse population, so the new Chief must have experience in building local and regional partnerships while keeping a focus on protecting civil liberties.

Key Attributes and Characteristics
• Communicates clearly and concisely, both verbally and in writing. • Plans, directs, and coordinates the work of the Police Service of East Palo Alto to meet short-term public safety objectives in concert with the Department’s multi-year Strategic Plan priorities. • Develops and administers sound Departmental policies, making decisions in accordance with laws, regulations, and City/ Department policies.
• Attracts and retains a diverse staff of sworn and civilian staff enriched by the cultural diversity which sets the city apart. • Mentors and develops talented subordinates to assume
increasing levels of responsibility in service to the community. • Delegates, while monitoring performance. Holds all subordinates accountable in a timely manner and imposes discipline when appropriate.
• Promotes community unity and forges effective working relationships.
• Works constructively with all internal and external stakeholders, including command staff and labor organizations.
• Takes initiative to continue the Department’s progress in the area of community-oriented policing.
• Leads by clear example, to ensure that officers value the richness of East Palo Alto’s diversity and interacts with all community members in an unbiased manner.
• Invests in the City’s future by reducing crime problems through meaningful intervention strategies.
• Uses innovation, technology, and strategic leadership to achieve the City’s long-term vision for the Police Service of East Palo Alto.

QUALIFICATIONS
Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:
• Equivalent to a bachelor’s degree in public administration, criminal justice, police science, or a related field.
• Seven (7) years + of progressively responsible service as a uniformed officer.
• Four (4) years + in a capacity similar to a Police Commander or equivalent classification with demonstrated advanced leadership experience.
• Possession of a Management certificate issued by the California State Commission on P.O.S.T.
• Possession of a valid Cardiopulmonary Resuscitation (CPR) certificate is required at the time of appointment.

SALARY AND BENEFITS
The salary range for this position is $191,016.03 - $232,181.17 The City also pays a competitive benefits plan as follows:
• Retirement – CalPERS Classic Members: 3% @ 50 formula; employees pay a nine percent (9%) pre-tax contribution. CalPERS New Members: 2.7% @ 57 formula.
• Health Benefits – For medical coverage, the City contracts with Sutter Health and Kaiser Permanente. City pays 100% employee Kaiser Coverage and 65% Dependent Coverage.
• Dental Insurance – Dental insurance is through Delta Dental. City pays full cost for employee only.
• Life Insurance – City pays for coverage up to $150,000. • Long-Term Disability Insurance – City pays for this coverage. • Paid Leave – The City of East Palo Alto offers a generous paid leave program, including 13 paid holidays/year, 8 hours/year month sick leave, 80 hours per year of vacation, and up to 60 hours/year of Management leave.
• Sick Leave – 8 hours/month.
• Employee Assistance Program: The City of East Palo Alto offers an employee assistance program for employees and dependents that provides counseling and other services for dealing with life’s challenges at no cost to the employee.

APPLICATION PROCESS

AND RECRUITMENT SCHEDULE
The final filing date is Friday, October 21, 2022.

To be considered, please electronically submit your resume, cover letter and a list of six professional references (references will not be contacted in the early stages of the recruitment) to:
https://koffassociates.com/chief-of-police-5/
Resumes should reflect years and months of positions held, as well as size of staff and budgets you have managed. For additional information, please contact:

Frank Rojas Carlo Zabala
(510) 495-0448 (510) 342-3233
[email protected] [email protected]
Website: https://koffassociates.com/
Resumes will be screened based on the criteria outlined in this brochure. Candidates with the most relevant qualifications will be given preliminary interviews by the executive recruiter. Koff & Associates will report the results to the City. The City will then select candidates who will be invited to participate in a formal interview process. Extensive reference and background checks will be completed on the selected candidate.

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Attachment: 2022 East Palo Alto Police Chief Recruitment Brochure (2399 : Update on the Chief of Police Recruitment)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Greg Henry, Senior Management Analyst
Greg Henry, Senior Management Analyst
SUBJECT: Convenience Fee for Online Payments of Business License Tax and Penalties Recommendation
Adopt a resolution authorizing the City Manager to set a convenience fee minimum for the use of credit cards and e-check transactions for online payments of Business License Tax and Penalties.

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
On June 7, 2022 the City Council approved a three-year agreement with Hinderliter De Llamas & Associates (HdL) to provide Business License Tax Administration Service. As a reminder, the services will provide a turnkey approach for the City. HdL has a team of experts that 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 has provided a brochure of their products here:
https://www2.hdlcompanies.com/misc/HdL%20Services%20Brochure.pdf HdL’s online portal was determined to be the best offered solution with the greatest ease of use and the highest level of sophistication for the City’s businesses. The City’s website will be

3.8 Packet Pg. 54
the starting point for all web-based activities. HdL’s 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:
· Submit a closure request
· Pay a balance due
· Update account information
· Print Certificates
· Make public record inquiries
HdL has notified the City of anticipated operational transfer date of October 24, 2022.

Analysis
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
However, when businesses make payments via credit card or e-check there is an additional charge by the payment processors (not HdL) for using their services. As a result, it is appropriate for the City to pass that additional cost on to the businesses utilizing this new service on order to protect the City’s revenue.

Fiscal Impact
Business paying their annual Business License Tax and Penalties will be charged a convenience fee for each online payment transaction. They will have the option to mail in a check, money order or cashier’s check for no additional fee. Currently, the convenience fee is

2.9% or $2.00 minimum for credit cards and $1.25 for each e-check. If the payment processors increase their fees, the increases will be passed on to those utilizing credit cards or echecks.

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.

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Attachments
A. Resolution Convenience Fee for Online Payments of Business License Tax and Penalties

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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

AUTHORIZING THE CITY MANAGER TO APPROVE A CONVENIENCE FEE

FOR CREDIT CARDS OR E-CHECK TRANSACTION FOR PAYMENTS OF BUSINESS

LICENSE TAXES AND PENALTIES
WHEREAS, the City of East Palo Alto entered into a 3-year agreement with Hinderliter De Llamas & Associates (HdL) to provide Business License Tax Administration Services; and
WHEREAS, as part of the agreement, HdL will provide an online portal for businesses to file and pay their Annual Business License Tax; and WHEREAS, as part of the agreement, HdL also will take some forms of payment over the phone; and
WHEREAS, when businesses make payments using a credit card or an echeck there is a charge by the transaction processors which should be borne by those utilizing the service; and
WHEREAS, when businesses make payments using check, money order or cashier’s check there is no transaction charge.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO authorizes the City Manager to approve imposition of a pass-through convenience fee for credit cards and e-check transactions for payments of business license taxes and penalties, as set by the companies providing the services and acknowledging these fees may increase incrementally over time.

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Attachment: Resolution Convenience Fee for Online Payments of Business License Tax and Penalties (2398 : Online Payment Plan for Resolution No. XX-2022 2 of 2
PASSED AND ADOPTED this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

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

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Attachment: Resolution Convenience Fee for Online Payments of Business License Tax and Penalties (2398 : Online Payment Plan for

EAST PALO ALTO

CITY COUNCIL

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

Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
Funded by City/ County Association of Governments (C/CAG) of San Mateo County, and managed by Sustainable Silicon Valley (SSV) and technology partner SinWaves, Inc. (doing business as LYT), the intelligent Transit Signal Priority (iTSP) pilot leverages a powerful coalition of project partners, including the City of East Palo Alto (EPA) and the San Mateo County Transit District (SamTrans). This partnership is committed to the shared goal of improving the on-time performance and travel time of buses within San Mateo County. EPA, a major traffic corridor in San Mateo County and also an Equity Priority Community, was chosen by the project team as an ideal location for this pilot.

The objective of the iTSP pilot project is to demonstrate the feasibility of a cloud-based, Artificial Intelligence-powered transit signal priority system. SSV’s technology partner LYT created and deployed an intelligent, cloud-based iTSP system named LYT.speed. This system combines asset management, automation and machine learning to provide services to an entire region. Unlike hardware-based TSP systems, LYT.speed leverages pre-existing equipment and utilizes cloud technology and Computer-Aided Dispatch / Automatic Vehicles Location (CAD/AVL). This removes the need for vehicle detection hardware at the

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intersections, because the vehicle location is known through the CAD/AVL system.

The location chosen for the iTSP pilot project is the highly-congested section of University Ave. in East Palo Alto (EPA) that is just over a half mile (0.65 miles) in length. This corridor is a subsection of SamTrans route 281 and includes the following intersections:
• University Ave. & Bay Rd.
• University Ave. & Runnymede St.
• University Ave. & Bell St.
• University Ave. & Donohoe St.

This six-month project involved the four intersections and utilized a fleet of 40 SamTrans buses equipped with low-cost wireless GPS devices. The LYT software dynamically adjusts the phase and timing of traffic signals to provide sufficient green clearance time, improving transit throughput and reducing travel time along the route, while minimally impacting cross traffic.

Analysis
Key results from the program include the following metrics and findings:
• TSP has reduced northbound intersection delay by 45% (40s) and southbound intersection delay by 19% (7s).
• These reductions translate to 18% and 7% reductions in travel time for northbound and southbound respectively.
• TSP increased green light success rates by 10% and 5% for northbound and southbound travel respectively.
• TSP allowed bus to travel 11% and 4% faster along University Ave for northbound and southbound respectively.

The lessons and experience from this project will inform a countywide TSP plan, which will serve as a blueprint for future capital investments in TSP throughout San Mateo County.

Additional information may be found on the City website here:
https://www.cityofepa.org/publicworks/page/deploying-intelligent-transit-signal-priority-projectsamtrans-east-palo-alto Fiscal Impact
No fiscal impact.

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 Co. Library located at 2415 University Avenue, East Palo Alto.

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Environmental
Awarding this contract is not a project under The California Environmental Quality Act (Section 21000, et. seq. of the California Public Resources Code, hereafter CEQA) because the action has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.

Attachments
A. iTSP Fact Sheet

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Deploying Intelligent Transit Signal Priority
for SamTrans in East Palo Alto
NEED
The efficiency of local transit has a direct impact on residents of communities such as East Palo Alto.

Designated as Equity Priority Community, the city’s population consists of many bus-dependent residents. In fact, the number of Zero-Vehicle Households in the city is at 9%, compared to 6% countywide. Today, those bus-riding residents must stop at traffic signals 70% of the time, costing them valuable time on the way to work, school, or other obligations.

The City of East Palo Alto is one place where improvements in transit reliability and performance can improve the quality of life for residents. For example, slow bus travel speeds along University Avenue resulted in a consistently poor rider experience. The problem has forced residents to opt for other modes of transportation, which contribute to neighborhood traffic congestion. A transit-first solution needed to be found to break through the congestion and achieve equitable mobility solutions for area residents.

SCOPE
With over $178,000
in funding from City/
County Association
of Governments
of San Mateo County (C/CAG),
Sustainable Silicon Valley (SSV)
formed a coalition of public and
private stakeholders including
San Mateo County Transit District
(SamTrans), City of East Palo
Alto and LYT to deliver intelligent
transit signal priority (iTSP) along
University Ave.

LYT’s cloud-based platform allows
SamTrans buses to leverage machine
learning principles and artificial
intelligence to provide green lights
more precisely. This improved
efficiency means buses can keep on
schedule while LYT.transit minimizes
the disruption to other vehicles and
side streets.
iTSP Pilot Corridor
The corridor where iTSP was
installed includes a subsection
of SamTrans Route 281 in the
following intersections:
• University Ave. & Bay Rd.
• University Ave. & Runnymede St.
• University Ave. & Bell St.
• University Ave. & Donohoe St.

What is iTSP?
Ordinary Transit Signal Priority (TSP)
solutions helps traffic signals gives green
lights to buses passing through by using
hardware transceivers. Intelligent Transit
Signal Priority (iTSP) offers the same basic
benefit, while also taking into account
current traffic conditions and other roadlevel data, harnessing the power of the cloud for faster and more detailed analysis.

The end result are perfectly timed, intuitive
green lights that minimize disruption to
other road users while keeping buses
moving through congested corridors.

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Attachment: iTSP Fact Sheet (2374 : Intelligent Transit Signal Priority Project Update)

BENEFITS
The iTSP pilot deployment on University Ave. yielded a significantly positive impact on several key performance indicators:

SCHEDULE
• Project Start: May 2021
• Pilot in Operation: November 2021 - March 2022
• Project End: March 2022

PROJECT CONTACT
Andrew (Drew) Clark
Sustainable Silicon Valley
[email protected]
Twitter/LinkedIn: @SustainableSV
Deploying Intelligent Transit Signal Priority
for SamTrans in East Palo Alto
Without iTSP, buses stop at traffic signals
70% of the time. With iTSP deployed at key
traffic intersections, the pilot demonstrated that
buses spent less time idling and got riders to
their destinations faster and more efficiently.

Reduced northbound intersection delays by
45% and southbound intersection delays
by 19%. These reductions translate to
18% and 7% reductions in travel time for
northbound and southbound respectively.

Increased the average speed on the
University Ave. corridor by 11% in the
Northbound direction and 4% in the
Southbound direction.

Offered a transformational opportunity for
the county to make its transit system more
intelligent and streamlined than ever before
with a cost-efficient solution.

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EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Patrick Heisinger, Interim City Manager
SUBJECT: Special Presentation from the East Palo Alto Sanitary District on Financing Options to Fund Infrastructure Improvements
Recommendation
It is recommended that the City Council allow representatives from the East Palo Alto Sanitary District (EPASD) to give a presentation regarding financing options for infrastructure improvements.

Background
On July 26, 2022, the City Council directed staff to take the necessary actions to draft the application to the San Mateo Local Agency Formation Commission (SMLAFCo) and to return to the City Council in the Fall with a draft application and resolution, If adopted, this action would initiate the Subsidiary District Process.

On July 27, 2022, the Director of Public Works sent a request to EPASD for several documents that would be necessary for the City to complete and submit the SMLAFCo application. Although EPASD was able to provide the City with some information, several key items were not received and therefore staff moved forward using alternative methods. For example, City staff requested GIS shapefiles, an EPASD 5-year Capital Improvement Plan (CIP), as well as the EPASD Hydraulic Model. EPASD was unable to provide these items for various reasons. Although the City was unable to acquire some of the requested information, the City’s consultant, Freyer and Laureta, who once served as consultant to EPASD, felt that enough information about the EPASD system had been shared to facilitate their efforts to draft the necessary documents for the SMLAFCo application.

On August 31, 2022, Betsy Yanez, the EPASD Board President, sent a letter to Mayor Abrica requesting a meeting between members of the EPASD Board, staff, and consultants, along with the \Mayor, Vice Mayor, and City staff.

On September 7, 2022, Mayor Abrica sent President Yanez a letter in response, . suggesting that a transparent, engaging process would provide better outcomes than meeting behind

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closed doors. As such, he invited EPASD and their consultants to present to the City Council, community, and other stakeholders at the City Council meeting on September 20, 2022.

EPASD agreed to attend the meeting on September 20, 2022.

Analysis
EPASD produced various documents in preparation for the September 20, 2022, City Council meeting. Without certainty of the EPASD preference for sharing the information presented in those documents with the City Council, City staff attached all of them.

Next Steps for the City
In conformance with City Council direction, staff intends to return to the City Council in October with a draft application and resolution, that if adopted, would initiate the Subsidiary District Process.

Fiscal Impact
None.

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
A. Rate Study
B. EPASD Presentation
C. Consultant Presentation
D. Memorandum from EPASD

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Capacity Charge Study
Final Report
September 7, 2022

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EAST PALO ALTO SANITARY DISTRICT CAPACITY CHARGE STUDY
Table of Contents

1. Introduction .........................................................................................................................................1

2. Acronyms..............................................................................................................................................1

3. District Background .............................................................................................................................2

4. Project Background..............................................................................................................................2

5. Capacity Charge Authority...................................................................................................................3

6. Introduction to Capacity Charge Methodologies................................................................................3

6.1. System Buy-In Methodology........................................................................................................3

6.2. Incremental Methodology ...........................................................................................................4

7. Existing Charges ...................................................................................................................................4

8. Proposed Study Methodology .............................................................................................................4

9. Source Data ..........................................................................................................................................5

10. Capacity Charge Calculation............................................................................................................5

10.1. Collection system Component ....................................................................................................5

10.2. Treatment Plant Component.......................................................................................................6

10.3. Capacity Charge per dwelling Unit..............................................................................................7

10.4. Proposed Non-Residential Capacity Charge...............................................................................8

11. Recommended Policy for Developer Financing..............................................................................9

12. Administration and Updates.......................................................................................................... 10

12.1. Reporting Requirements............................................................................................................ 10

12.2. Inflationary Adjustments ........................................................................................................... 10 APPENDIX A – GOVERNMENT CODE SECTIONS 66013, 66016, 66022, AND 66023

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1. INTRODUCTION
The East Palo Alto Sanitary District (District) contracted with Hildebrand Consulting, LLC to conduct a Capital Charge Study (Study). The overall purpose of the Study is to review the District’s existing Capacity Charges which apply to new sewer connections within the District’s service area and update those charges as appropriate. Specifically, the update to the Capacity Charges are intended to incorporate the costs to expand the sewer system’s capacity, as described in a 2021 amendment to the 2015 Sewer Master Plan.

Capacity Charges are the one-time charges paid by new development for capacity in the sewer system, including collection and treatment facilities. This report summarizes the analysis and proposed updates to the District’s existing Capacity Charge, including the legal requirements and the Study’s methodology for calculating the Capacity Charges.

In addition to updating the District’s Capacity Charge, this Study recommend how to address circumstances when the cost of a pipeline expansion project to serve a proposed development far exceeds the Capacity Charge revenue that the new development would generate.

2. ACRONYMS
The acronyms used in this Study include:

ADU accessory dwelling unit
BOD biochemical oxygen demand
CCI Engineering News Record’s 20-cities Construction Cost Index EDU equivalent dwelling unit
ENR Engineering News Record
EPASD East Palo Alto Sanitary District
gpd gallons per day
MGD million gallons per day
PARWQCP Palo Alto Regional Water Quality Control Plant
RCNLD replacement cost new less depreciation
RWQCB Regional Water Quality Control Board
SWRCB State Water Resources Control Board
SS total suspended solids

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3. DISTRICT BACKGROUND
The EPASD is an independent, community‐owned and operated public agency that provides wastewater collection and treatment service to East Palo Alto and adjacent areas of Menlo Park and San Mateo County. EPASD was established in 1939 and is governed by a 5‐member board of directors elected at large from the community.

The District provides wastewater collection service to portions of the communities of Menlo Park and East Palo Alto, located in San Mateo County in the San Francisco Bay Area. The District’s service area is primarily residential with several commercial and industrial parcels. The District’s service area encompasses nearly 1,230 acres, or 1.92 square miles. The District’s collection system is a gravity system with over 30 miles of sanitary sewer pipelines and is operated and maintained in accordance with the requirements of the State Water Resources Control Board (SWRCB), as administered through the Statewide Sanitary Sewer Overflow Waste Discharge Requirements and Regional Water Quality Control Board (RWQCB) Sewer System Management Plan guidelines.

The District’s sewage is conveyed to the Palo Alto Regional Water Quality Control Plant (PARWQCP) for treatment and disposal. The PARWQCP is a regional wastewater treatment plant owned and operated by the City of Palo Alto on behalf of a number of regional agencies. EPASD currently owns 7.34 percent of the capacity in the PARWQCP.

4. PROJECT BACKGROUND
The District’s last Capacity Charge study was conducted in 2018 and was, in part, based on the District’s 2015 Sewer Master Plan, which was based on the City of East Palo Alto’s 1999 General Plan and Zoning Ordinance. Since that time, the District’s Master Plan has been amended1in order to capture changes in land use identified by the City of East Palo Alto’s 2035 General Plan.

Significantly, the 2035 General Plan reflects to the fact that the City has recently lifted a long-standing moratorium on growth.

The District’s Amended 2015 Sewer Master Plan identifies approximately $35 million of pipeline upsizings needed to accommodate flows from potential new development based on the 2035 General Plan & rezoning. The growth described by the 2035 General Plan would also require the District to purchase additional capacity in the PARWQCP (capacity of 1 million gallons per day (MGD) at a cost of $5 million). Most, if not all, of these expansion costs are expected to be debt financed by the District.
1 Addendum to the March 2015 East Palo Alto Sanitary District Master Plan Update, dated April 28, 2021

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5. CAPACITY CHARGE AUTHORITY
California state law gives the District broad authority to charge for capital facilities. The limitations of that authority are encompassed by the requirement that charges on new development bear a reasonable relationship to the needs created by, and the benefits accruing to that development.

California courts use that reasonableness standard to evaluate the constitutionality of exactions on new development, including Capacity Charges.

Government Code Section 66013 (see Appendix A) contains specific requirements related to the imposition of capacity charges. In general, Capacity Charges must not exceed the estimated reasonable cost of providing service.

6. INTRODUCTION TO CAPACITY CHARGE METHODOLOGIES
There are various methods that can be used to calculate Capacity Charges. Each method has varying advantages and disadvantages, as well as applicability in a given situation. Within all of the available methodologies there are two primary approaches. Other methodologies are usually some variation or combination of these two methods. The two primary methods are described below to illustrate the different perspectives that can be used to determine appropriate fees.

6.1. SYSTEM BUY-IN METHODOLOGY
Many utility facilities are oversized when initially constructed in anticipation of future development, particularly infrastructure such as pumping facilities and wastewater treatment facilities. The system Buy-In method is based on the past investments in the capital facilities made by current customers.

The ‘Buy-In’ concept means that existing system users, through Capacity Charges and user rates, have financed a valuable public capital facility. The Capacity Charge assessed to new customers is designed to recognize those previous investments into the system and equitably charge developers for “joining” the system. The Buy-In fee is calculated by establishing the system’s current fixed asset value (accounting for inflation and depreciation), adding applicable assets (such as cash reserves designated for capital spending), and deducting relevant liabilities (principal owed on long-term debt).

This value is then divided by the system’s capacity, which yields the unit costs that are the basis for the Capacity Charges. By calculating the Capacity Charges in this manner, new development buys into the existing capital facilities on par with existing development. The cost of future repair and replacement of the existing assets are then shared equally by all customers going forward (through user rates).

Capacity Charges based on the Buy-In method are a reimbursement for past capital costs.

Therefore, the use (as defined in the Government Code) of the fee is to reimburse the District. Once reimbursed, the District is able to spend fee revenue as it desires (normally on capital projects).

The system Buy-In method is best applied in areas where foreseeable growth can be served by existing infrastructure.

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6.2. INCREMENTAL METHODOLOGY
The Incremental cost methodology is also a common approach for Capacity Charges, particularly for utilities that are at, or near, capacity and are expecting more growth. The approach is based on the cost of new or planned capital facilities. The cost of expanding the existing facilities is allocated to the new development based on their need for capacity. The premise is that the existing system is being used at full capacity by existing customers and that any new development will necessitate expansion of the system. As such, new customers pay for the Incremental costs for expanding the system. The cost of adding new capacity is usually derived from the District’s capital improvement plan or master plan and may include the cost of financing the project (interest expenses).

Capacity Charges based on the Incremental cost methodology are subject to statutory accounting requirements because fee revenue must be accounted for until the specific capital improvements are constructed. For reference, Appendix A includes statutory requirements for accounting for Capacity Charges.

7. EXISTING CHARGES
Based on the findings of the 2018 Capacity Charge Study, the District currently charges $6,060 per equivalent dwelling unit (EDU), which assumes a flow of 240 gallons per day (gpd), and wastewater strength of 200 mg/L of biochemical oxygen demand (BOD) and 200 mg/L of total suspended solids (SS). BOD and SS are two industry‐standard measures of wastewater strength used in rate and fee setting. Charging new connections based on sewer strength ensures that new customers with wastewater that contains higher‐strength concentrations of BOD and SS will pay for their proportionate share of facility costs related to wastewater treatment.

The existing Capacity Charges were calculated using the Buy-In approach since the 2018 Capacity Charge study relied on the original 2015 Master Plan, which was informed by the City of East Palo Alto’s 1999 General Plan. The more recent Addendum to the 2015 Master Plan incorporates the significant capital expansion identified in the 2035 General Plan.

8. PROPOSED STUDY METHODOLOGY
This Study proposes to use the Incremental methodology since the remains a very limited amount of available capacity and it is reasonable for the District to reserve that remaining capacity as a safety factor against sanitation sewer overflow (SSO) events. This is combined with the fact that the 2035 General Plan and the 2015 Sewer Master Plan describe the need for significant and imminent capacity expansion. As previously described, the Incremental methodology consists of dividing the estimated cost of system expansion projects by the amount of new capacity that those projects will create. In this case, there are two components: the collection system expansion and the purchase of more capacity at the wastewater treatment plan (PARWQCP)

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Capacity Charge Equation:

𝐶𝑜𝑠𝑡 𝑜𝑓 𝐶𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑆𝑦𝑠𝑡𝑒𝑚 𝐸𝑥𝑝𝑎𝑛𝑠𝑖𝑜𝑛
𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑖𝑛 𝐶𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑆𝑦𝑠𝑡𝑒𝑚 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 +
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑃𝐴𝑅𝑊𝑄𝐶𝑃 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑃𝐴𝑅𝑊𝑄𝐶𝑃 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
The remainder of this report describes the data and methodology used to calculate the proposed Capacity Charges.

9. SOURCE DATA
The following data was used for calculating the proposed Capacity Charges:
• Addendum to the March 2015 East Palo Alto Sanitary District Master Plan Update, dated April 28, 2021
• Wastewater Capacity Charge Update, Bartle Wells Associates, December 2018 • Staff communications (email)

10. CAPACITY CHARGE CALCULATION
The Capacity Charge calculation is divided into a collection system component and a treatment plant component.

10.1. COLLECTION SYSTEM COMPONENT
For purposes of this Study, the assumed cost of expanding the collection system is based on the cost estimates provided by the Amended 2015 Sewer Master Plan, which describes an expansion of 1.08 MGD in collection system capacity (see page 5). As shown in Table 1 below, in addition to the direct costs of expanding the collection system, this Study includes the estimated future cost of debt financing the expansion projects since the District does not intend to use ratepayer-funded reserves to finance the projects.

In light of the proposed District policy that is discussed in Section 11, it is necessary to further divide the collection system costs into trunk costs (the trunk line that feeds the PARWQCP and serve all customers) and local collection system costs (the collection pipes that serve more specific areas).

This is important because (as discussed in Section 11), some projects will be required to directly finance the cost of expanding local collection pipelines, which will be done in lieu of paying “Local Collection” Capacity Charges. Those customers, however, will still be required to pay “Trunk” Capacity Charges as well as the Treatment Plant Capacity Charge.

It should be noted that this Study acknowledges that the expansion-related projects for the local collection system will simultaneously rehabilitate or improve existing pipelines (for example, a 4” line with 40 years of remaining expected useful life is replaced with a new 6” line that has an expected useful life of 80 years). Significantly, the District has some discretion in how to allocate costs between expansion versus rehabilitation. This is because the vast amount of the cost of replacing a

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pipe has nothing to do with the pipe itself, but rather the cost of opening the street, excavating the trench, filling the trench, and patching the street. The only real cost difference between a pipe expansion project and a pipe replacement project is the marginal cost between a smaller diameter pipe and a larger diameter pipe, which is a small fraction of the total project cost. As such, the majority of the costs typically allocated to the project “driver” (in other words, is (1) a healthy pipe being replaced early because a larger pipe is needed for development or (2) is a failing pipe being upsized in anticipation of growth that may happen in the future). In this case, most of the pipelines that are proposed to be upsized have a considerable amount of expected useful life remaining (per District staff), as such the project driver is expansion, not rehabilitation. As such, it is reasonable that the District recover 70 percent of the project costs from developers, while recovering 30 percent from rate payers in recognition of the rehabilitation benefits.

The two tables below provide the calculation of the unit costs for the Trunk Capacity Charge and the Local Collection Capacity Charge, based on the estimated costs of the projects and the amount of new capacity that will be created.

Table 1 - Trunk Incremental Cost Per Unit of Capacity
Table 2 - Local Collection Incremental Cost Per Unit of Capacity

10.2. TREATMENT PLANT COMPONENT
The proposed purchase of new PARWQCP capacity is 1.0 MGD, which is expected to cost $5 million (see Table 3). As with the collection system expansion costs, this Study includes the cost associated with debt financing these costs.

Estimated cost of Trunk expansion 1
: $13,000,000
Projected interest expense 2: $12,370,060
Proposed additional Trunk System capacity 3 : 1,080,000 Cost recovery percent for fee calculation 4: 100%
Trunk Unit cost ($/gpd): $23.49
1 Source: Amended 2015 Sewer Master Plan and email from District staff (Akin Okupe, July 1, 2022) 2 Assumes 5 percent interest and 30 year repayment period 3 Source: Amended 2015 Sewer Master Plan
4 The Trunk expansion consists of adding a second trunk, which is entirely to serve growth.

Estimated cost of Local Collection System expansion 1: $22,156,000 Projected interest expense 2: $21,082,388
Proposed additional Local Collection System capacity 3 : 1,080,000 Cost recovery percent for fee calculation 4: 70%
Local Collection Unit cost ($/gpd): $28.02
1 Source: Amended 2015 Sewer Master Plan (total cost less Trunk cost) 2 Assumes 5 percent interest and 30 year repayment period 3 Source: Amended 2015 Sewer Master Plan
4 District policy based on estimated rehabilitation value of replacing existing pipeline

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The treatment plant costs are allocated to both wastewater flows as well as to wastewater strength, as measured by BOD and SS. Consistent with the 2018 Capacity Charge study, the treatment costs are allocated 34 percent to flow, 33 percent to BOD, and 33 percent to SS. Also consistent with the 2018 Capacity Charge study, it is assumed that the average strength of flow at the PACWQCP is 250 mg/L of BOD and 225 mg/L of SS. Table 3 summarizes the resultant unit costs for flow, BOD and SS.

Table 3 - Treatment Plant - Incremental Cost Per Unit of Capacity

10.3. CAPACITY CHARGES FOR RESIDENTIAL ACCOUNTS
The total Capacity Charge is calculated by adding the Trunk Capacity Charge to the Local Collection Capacity Charge to the Treatment Plant component, as shown in Table 4. The total Capacity Charge is assessed to each residential dwelling unit. The assumed flow and strength of the wastewater for residential accounts is based on the assumptions from the 2018 Capacity Charge study, which relied on the District’s engineering design estimates and standards as published by the State Water Resources Control Board (SWRCB).

Cost of Capacity Rights in the PARWQCP: $5,000,000
Interest Expense: $4,758,000
Cost recovery percent for fee calculation 2: 100%
Cost Allocation Flow BOD SS Total
Cost Allocation (%): 34.0% 33.0% 33.0% 100%
Cost Allocation ($): $3,317,720 $3,220,140 $3,220,140 $9,758,000 Wastewater Strength at PARWQCP 2: 250 225
mg/L mg/L
EPASD Buildout Capacity at PARWQCP: 1,000,000 761,518 685,367 gpd lbs/year lbs/year
Unit Cost: $3.318 $4.229 $4.698
per gpd per lb per lb
1 Source: 2018 Capacity Charge Study and based on historical influent wastewater strength at the wastewater treatment plant.
2 The purchase of additional capacity at the treatment plant is entirely to serve new growth.

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Table 4 - Proposed Capacity Charge per EDU
Per California state law, the District is not authorized to assess Capacity Charges on all accessory dwelling units (ADU). This area of the law currently in flux; therefore, the District should consult with legal counsel regarding the most current laws. For those ADUs that are eligible to be charged a Capacity Charge, the fee will be $964.00 per plumbing fixture (based on the District’s estimate that an average single-family home has 15 plumbing fixtures).

10.4. CAPACITY CHARGES FOR NON-RESIDENTIAL ACCOUNTS
Capacity Charges are assessed to non-residential accounts based on the number of EDUs assigned to the connection, which are derived based on the estimated wastewater flow and strength loadings of each connection according to the formula shown in Figure 1. The fractions shown in Figure 1 (which effectively “weight” the relative importance of flow vs. BOD vs. SS) are taken from the percentages shown in Table 4.

Figure 1 – Calculation of Non-Residential EDUs
Flow BOD SS
Equivalent Dwelling Unit (EDU) Loadings 1 240 200 200
gpd mg/l mg/l

0.4006 0.4006
lbs/day lbs/day
Cost Recovery Components
Trunk Expansion: $23.49 - -
Local Collection System Expansion: $28.02 - -
PARWQCP Buy-In Cost: $3.318 $4.229 $4.698
Subtotal: $54.83 $4.229 $4.698
per gpd per lb per lb
Capacity Charge per EDU
Trunk Cost Recovery: $5,637.79 - -
Local Collection Cost Recovery: $6,725.97
Treatment Plant Cost Recovery: $796.25 $618.69 $687.43
Total Cost Recovery: $13,160.02 $618.69 $687.43
Percent of Total: 89.4% 5.0% 5.6%
Trunk Capacity Charge (per EDU): $5,637
Local Collection Capacity Charge (per EDU): $6,725
TreatmentPlant Capacity Charge (per EDU): $2,102
Total Capacity Charge (per EDU): $14,464
1 Based on 2018 Capacity Charge study, which used current engineering design estimates and SWRCB standards
Number of EDUs = 0.894 x Flow / 240 gpd + 0.05 x BOD / 200 mg/l + 0.056 x SS / 200 mg/l

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11. RECOMMENDED POLICY FOR DEVELOPER FINANCING
When building pipeline expansion projects to serve new development (“Pipeline Project”), it is the District’s assumption that either (a) the proposed development is large enough to generate enough Capacity Charge revenue to justify the Pipeline Project or (b) the Pipeline Project serves an area where a material amount of additional subsequent development (and hence Capacity Charge revenue) is imminent. In some cases, however, relatively small developments may require Pipeline Projects whose costs are disproportionate to the amount Capacity Charge revenue that are expected to be generated. This would occur if the original development were relatively small and future additional development in the area is uncertain. For purposes of this Report, these types of proposed development projects are referred to as “Under Scaled” projects. While Capacity Charges are typically adequate to pay for the cost of expansion, Under Scaled projects are not large enough to justify the costs of the Pipeline Project.

Under Scaled projects put the District (i.e., existing ratepayers) in the position of taking a significant financial risk for the benefit of a limited number of new customers. While the District should work towards meeting the future wastewater service needs of the growing community (in part, as described by the City of Palo Alto’s General Plan), the District may prioritize its right to protect its existing rate payers from subsidizing the cost of development. In order to both (1) financially protect existing rate payers and (2) give developers a means by which to proceed with Under Scaled projects, it is proposed that the District adopt a policy whereby the developers of Under Scaled projects are required to finance a significant portion of the Pipeline Project (a cost that would be, by definition, greater than the Local Collection Capacity Charges normally owed by the developer).

Then, if and when future development does occur in the area served by the Pipeline Project, the original developer would recover the equivalent of the then-current Local Collection Capacity Charges from the subsequent developers.

The following terms are proposed to serve as a framework for detailing a formal District policy:
• The District is authorized to designate any development as being Under Scaled if the projected Local Collection Capacity Charge revenue is less than 50 percent of the cost of the required pipeline expansion project (including soft costs). • The designation of a development as Under Scaled District would be influenced by the District’s understanding of the potential for future development in the area. The District would have the discretion to determine whether that growth potential was sufficient to adequately fund the Pipeline Project (i.e., generate Local Collection Capacity Charge revenue equal to at least 50 percent of the cost of the pipeline project). • The developer of an Under Scaled project would be required to pay for 50 percent of the cost of the Pipeline Project (hereafter referred to as the “Developer Finance Contribution”). • The difference between the Developer Finance Contribution and the amount that the developer would have otherwise paid through Local Collection Capacity Charges is the

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amount that would be eligible to be reimbursed to the developer through the Local Collection Capacity Charges paid by future developers (“Reimbursable Amount”).

12. ADMINISTRATION AND UPDATES
The following describes the District’s on-going administrative responsibilities regarding the Capacity Charges.

12.1. REPORTING REQUIREMENTS
As previously discussed, when using the Incremental methodology, the District is responsible for reporting the use of the Incremental portion of the Capacity Charge revenue to demonstrate that the revenue is being used to fund expansion-related capital projects. For reference, Appendix A includes the statutory requirements for accounting for Capacity Charges. On an annual basis the District should report the annual Capacity Charge revenue, the use of funds, the beginning and ending balance of the designated fund, and a description of how the funds were used in the previous year.

Additional reporting requirements are listed in Government Code Section 66018.

12.2. INFLATIONARY ADJUSTMENTS
The District may elect to annually adjust the Capacity Charges for the effects of inflation using the CCI. The Capacity Charges in Table 4 have been indexed to a CCI value of 13,111 (June 2022).

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APPENDIX A – GOVERNMENT CODE
SECTIONS 66013, 66016, 66022, AND 66023
66013. (a) Notwithstanding any other provision of law, when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed, unless a question regarding the amount of the fee or charge imposed in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue. (b) As used in this section:
(1) "Sewer connection" means the connection of a structure or project to a public sewer system. (2) "Water connection" means the connection of a structure or project to a public water system, as defined in subdivision (f) of Section 116275 of the Health and Safety Code. (3) "Capacity charge" means a charge for facilities in existence at the time a charge is imposed or charges for new facilities to be constructed in the future that are of benefit to the person or property being charged. (4) "Local agency" means a local agency as defined in Section 66000. (5) "Fee" means a fee for the physical facilities necessary to make a water connection or sewer connection, including, but not limited to, meters, meter boxes, and pipelines from the structure or project to a water distribution line or sewer main, and that does not exceed the estimated reasonable cost of labor and materials for installation of those facilities.
(c) A local agency receiving payment of a charge as specified in paragraph (3) of subdivision (b) shall deposit it in a separate capital facilities fund with other charges received, and account for the charges in a manner to avoid any commingling with other moneys of the local agency, except for investments, and shall expend those charges solely for the purposes for which the charges were collected.

Any interest income earned from the investment of moneys in the capital facilities fund shall be deposited in that fund.
(d) For a fund established pursuant to subdivision (c), a local agency shall make available to the public, within 180 days after the last day of each fiscal year, the following information for that fiscal year:
(1) A description of the charges deposited in the fund. (2) The beginning and ending balance of the fund and the interest earned from investment of moneys in the fund. (3) The amount of charges collected in that fiscal year. (4) An identification of all of the following:
(A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used.
(B) Each public improvement on which charges were expended that was completed during that fiscal year. (C) Each public improvement that is anticipated to be undertaken in the following fiscal year. (5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan. (e) The information required pursuant to subdivision (d) may be included in the local agency's annual financial report.
(f) The provisions of subdivisions (c) and (d) shall not apply to any of the following:

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EAST PALO ALTO SANITARY DISTRICT CAPACITY CHARGE STUDY
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(1) Moneys received to construct public facilities pursuant to a contract between a local agency and a person or entity, including, but not limited to, a reimbursement agreement pursuant to Section 66003. (2) Charges that are used to pay existing debt service or which are subject to a contract with a trustee for bondholders that requires a different accounting of the charges, or charges that are used to reimburse the local agency or to reimburse a person or entity who advanced funds under a reimbursement agreement or contract for facilities in existence at the time the charges are collected. (3) Charges collected on or before December 31, 1998.
(g) Any judicial action or proceeding to attack, review, set aside, void, or annul the ordinance, resolution, or motion imposing a fee or capacity charge subject to this section shall be brought pursuant to Section 66022. (h) Fees and charges subject to this section are not subject to the provisions of Chapter 5 (commencing with Section 66000), but are subject to the provisions of Sections 66016, 66022, and 66023. (i) The provisions of subdivisions(c) and (d) shall only apply to capacity charges levied pursuant to this section. 66016. (a) Prior to levying a new fee or service charge, or prior to approving an increase in an existing fee or service charge, a local agency shall hold at least one open and public meeting, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Notice of the time and place of the meeting, including a general explanation of the matter to be considered, and a statement that the data required by this section is available, shall be mailed at least 14 days prior to the meeting to any interested party who files a written request with the local agency for mailed notice of the meeting on new or increased fees or service charges. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. Renewal requests for mailed notices shall be filed on or before April 1 of each year. The legislative body may establish a reasonable annual charge for sending notices based on the estimated cost of providing the service. At least 10 days prior to the meeting, the local agency shall make available to the public data indicating the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including General Fund revenues. Unless there has been voter approval, as prescribed by Section 66013 or 66014, no local agency shall levy a new fee or service charge or increase an existing fee or service charge to an amount which exceeds the estimated amount required to provide the service for which the fee or service charge is levied. If, however, the fees or service charges create revenues in excess of actual cost, those revenues shall be used to reduce the fee or service charge creating the excess.
(b) Any action by a local agency to levy a new fee or service charge or to approve an increase in an existing fee or service charge shall be taken only by ordinance or resolution. The legislative body of a local agency shall not delegate the authority to adopt a new fee or service charge, or to increase a fee or service charge. (c) Any costs incurred by a local agency in conducting the meeting or meetings required pursuant to subdivision (a) may be recovered from fees charged for the services which were the subject of the meeting. (d) This section shall apply only to fees and charges as described in Sections 51287, 56383, 57004, 65104, 65456, 65863.7, 65909.5, 66013, 66014, and 66451.2 of this code, Sections 17951, 19132.3, and 19852 of the Health and Safety Code, Section 41901 of the Public Resources Code, and Section 21671.5 of the Public Utilities Code. (e) Any judicial action or proceeding to attack, review, set aside, void, or annul the ordinance, resolution, or motion levying a fee or service charge subject to this section shall be brought pursuant to Section 66022. 66022. (a) Any judicial action or proceeding to attack, review, set aside, void, or annul an ordinance, resolution, or motion adopting a new fee or service charge, or modifying or amending an existing fee or service charge, adopted by a local agency, as defined in Section 66000, shall be commenced within 120 days of the effective date of the ordinance, resolution, or motion.

If an ordinance, resolution, or motion provides for an automatic adjustment in a fee or service charge, and the automatic adjustment results in an increase in the amount of a fee or service charge, any action or proceeding to attack, review, set aside, void, or annul the increase shall be commenced within 120 days of the effective date of the increase.

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EAST PALO ALTO SANITARY DISTRICT CAPACITY CHARGE STUDY
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(b) Any action by a local agency or interested person under this section shall be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. (c) This section shall apply only to fees, capacity charges, and service charges described in and subject to Sections 66013 and 66014.
66023. (a) Any person may request an audit in order to determine whether any fee or charge levied by a local agency exceeds the amount reasonably necessary to cover the cost of any product or service provided by the local agency. If a person makes that request, the legislative body of the local agency may retain an independent auditor to conduct an audit to determine whether the fee or charge is reasonable. (b) Any costs incurred by a local agency in having an audit conducted by an independent auditor pursuant to subdivision (a) may be recovered from the person who requests the audit. (c) Any audit conducted by an independent auditor to determine whether a fee or charge levied by a local agency exceeds the amount reasonably necessary to cover the cost of providing the product or service shall conform to generally accepted auditing standards.
(d) The procedures specified in this section shall be alternative and in addition to those specified in Section 54985. (e) The Legislature finds and declares that oversight of local agency fees is a matter of statewide interest and concern. It is, therefore, the intent of the Legislature that this chapter shall supersede all conflicting local laws and shall apply in charter cities.
(f) This section shall not be construed as granting any additional authority to any local agency to levy any fee or charge which is not otherwise authorized by another provision of law, nor shall its provisions be construed as granting authority to any local agency to levy a new fee or charge when other provisions of law specifically prohibit the levy of a fee or charge.

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Attachment: Rate Study (2405 : East Palo Alto Sanitary District on Financing Options to Fund Infrastructure Improvements) East Palo Alto Sanitary District
Sewer Infrastructure Financing
options for Development Project
September 2022

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Attachment: EPASD Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Fund Table of Content
• Existing Infrastructure • New Developments • Financing options • Conclusion • Way Forward

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Attachment: EPASD Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Fund Existing Infrastructures • Consists of 15 drainage basins • Approximately 70% of the pipes are six inches • The trunk line running to the plant is 24-inches • Serves most of East Palo Alto and Menlo Park • Consists of a siphon below the Creek

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Attachment: EPASD Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Fund New Developments
• New developments will require a system capacity of 4 MGD • Upgrade will cost about $40 million
• Approximately 42,000 ft of pipe upgrade required
• Projects cannot be phased
• Trunk line only has 100,000 GPD left in capacity
• Existing siphon has adequate capacity

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Attachment: EPASD Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Fund Financing Options
• Municipal Bond- will require a rate increase from the $600 to $1100 per year
• Grants- A grant consultant has been retained for this purpose • Mello Roos Tax- Work in progress
• Combination of municipal bond and grant
• Low interest loan
• Pay as you go

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Attachment: EPASD Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Fund Conclusion
• Rate Study completed
• Capacity study completed- with this option, all developers can get will serve letters
• Mello Roos Tax work in progress
• Master Plan completed
• CCTV Project in progress
• Light Tree Project Awarded
• Grant consultant hired
• Coordination with Rate Committee ongoing

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Attachment: EPASD Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Fund Way Forward
• Schedule a meeting between developers and Consultants • Look for Grants
• Complete Mello Roos Tax study plan
• Adopt the option with the most mutual benefit
• Give will serve letters to all developers

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Attachment: EPASD Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Fund 2022 Capacity Charge Study
September 20, 2022

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Capacity Charges
• Capacity charges are the one-time fees charged to new development for capacity in the sewer collection and treatment system. • The current charges were calculated in 2018
Legal Standard
• Section 66013 of the Government Code states that capital facility fees shall not exceed the estimated reasonable cost of providing the service for which the charges are imposed.
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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Common Capacity Charge Approaches
Past Investments in
Capacity
Future Investments
in Capacity
Buy-In Approach Incremental Cost Approach
Value of Plant in Service
Existing Capacity
(equivalent meters)
= Fee Cost of Proposed Growth Projects
Planned New Capacity
= Fee
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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Recommended Methodology
4 • This Study recommends using the Incremental approach to calculate the Capacity Charges.
• The remaining available capacity in the system is very limited and it is reasonable that District decide to keep this small amount of extra capacity as a safety “cushion” against future peak loads.
• The Amended 2015 Master Plan has identified significant expansion-related projects that will need to be built to accommodate growth. The cost of this new capacity is representative of the current cost of capacity in the system

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Capacity Charge Components
5 Local Collection Capacity Charge - For the costs of upsizing local pipes, benefits specific areas
Trunk Capacity Charge – For the cost of upsizing the trunk serving the PARWQCP, benefits all customers
Treatment Plan Capacity Charge – For the cost of purchasing more capacity at the PARWQCP, benefits all customers

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Local Collection Unit Costs
6 Estimated cost of Local Collection System expansion 1: $22,156,000 Projected interest expense 2: $21,082,388
Proposed additional Local Collection System capacity 3: 1,080,000 Cost recovery percent for fee calculation 4: 70%
Local Collection Unit cost ($/gpd): $28.02
1 Source: Amended 2015 Sewer Master Plan (total cost less Trunk cost) 2 Assumes 5 percent interest and 30 year repayment period 3 Source: Amended 2015 Sewer Master Plan
4 District policy based on estimated rehabilitation value of replacing existing pipeline

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Trunk Unit Costs
7 Estimated cost of Trunk expansion 1: $13,000,000
Projected interest expense 2: $12,370,060
Proposed additional Trunk System capacity 3: 1,080,000
Cost recovery percent for fee calculation 4: 100%
Trunk Unit cost ($/gpd): $23.49
1 Source: Amended 2015 Sewer Master Plan and email from District staff (Akin Okupe, July 1, 2022) 2 Assumes 5 percent interest and 30 year repayment period 3 Source: Amended 2015 Sewer Master Plan
4 The Trunk expansion consists of adding a second trunk, which is entirely to serve growth.

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Treatment Plant Unit Costs
8 Cost of Capacity Rights in the PARWQCP: $5,000,000
Interest Expense: $4,758,000
Cost recovery percent for fee calculation 2: 100%
Cost Allocation Flow BOD SS Total
Cost Allocation (%): 34.0% 33.0% 33.0% 100%
Cost Allocation ($): $3,317,720 $3,220,140 $3,220,140 $9,758,000 Wastewater Strength at PARWQCP
1 : 250 225
mg/L mg/L
EPASD Buildout Capacity at PARWQCP: 1,000,000 761,518 685,367 gpd lbs/year lbs/year
Unit Cost: $3.318 $4.229 $4.698
per gpd per lb per lb
1 Source: 2018 Capacity Charge Study and based on historical influent wastewater strength at the wastewater treatment plant.
2 The purchase of additional capacity at the treatment plant is entirely to serve new growth.

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Proposed Capacity Charge (per EDU)
9 Flow BOD SS
Equivalent Dwelling Unit (EDU) Loadings 1
240 200 200
gpd mg/l mg/l

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Capacity Charges for Other Accounts
10 Accessory Dwelling Units (ADUs) - For those ADUs that are eligible to be charged a Capacity Charge (subject to state-level laws), the fee will be $964 per plumbing fixture
Non-Residential – Non-residential accounts are assigned an EDU value based on the following formula:

Number of EDUs = 0.894 x Flow / 240 gpd + 0.05 x BOD / 200 mg/l + 0.056 x SS / 200 mg/l gpd = gallons per day
BOD = biochemical oxygen demand
SS = suspended solids
mg/l = milligrams per liter (measure of concentration)

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Survey of Regional Capacity Charges
for single family homes
11 $0
$5,000
$10,000
$15,000
$20,000

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Special Circumstances
12 • There exist some proposed development projects that meet both of the following criteria:
ü The development would require a pipeline expansion project that far exceeds the Capacity Charge revenue that the new development would be charged. ü The Local Collection pipeline expansion project serves an area where additional development is uncertain

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Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Developer Financing Policy
13 • In such situations, it its recommended that the District adopt a policy whereby such developments would be required to pay for 50% of the required local collection pipeline expansion project (with the other half being paid by ratepayers in order to acknowledge the benefit of rehabilitating the existing pipe).
• The above costs would be paid in-lieu of the Local Collection Capacity Charge. The developer would still be required to pay for the Trunk Capacity Charge and the Treatment Capacity Charge.
• If and when future development does occur “upstream” of the pipeline project, the developer would receive the Local Collection Capacity Charges paid by the new developers.

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Packet Pg. 100 Attachment: Consultant Presentation (2405 : East Palo Alto Sanitary District on Financing Options to Discussion
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Packet Pg. 102 Attachment: Memorandum from EPASD (2405 : East Palo Alto Sanitary District on Financing Options to Fund Infrastructure Improvements)

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Packet Pg. 103 Attachment: Memorandum from EPASD (2405 : East Palo Alto Sanitary District on Financing Options to Fund Infrastructure Improvements)

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Packet Pg. 104 Attachment: Memorandum from EPASD (2405 : East Palo Alto Sanitary District on Financing Options to Fund Infrastructure Improvements)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 20, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Kelly Beggs, Consultant Planner
Elena Lee, Planning Manager
Hansom Hom, Deputy Manager, Special Projects
SUBJECT: Woodland Park Euclid Improvements
Recommendation

1. Adopt a resolution:
- Certifying that the Final Environmental Impact Report (FEIR) has been done in compliance with the California Environmental Quality Act (CEQA); - Adopting a Mitigation, Monitoring and Reporting Plan pursuant to Public Resources Code 21000 and the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000);
- Adopting a Statement of Overriding Considerations;
- Directing the Community and Economic Development Director to File a Notice of Determination within five working days of adoption pursuant to Section 15075 of the CEQA Guidelines

2. Adopt a Resolution approving the General Plan Amendment (GP19-001) establishing the Neighborhood Center Overlay Land Use Designation;

3. Introduce Ordinances enacting the Development Code and Zoning Map amendments (ZC19-002) establishing the Neighborhood Center Overlay District;

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reference;
- Approving the Relocation Plan dated September 2022; and - Authorizing the City Manager to execute a Notice of Special Restrictions applying the City's Rent Stabilization Ordinance to 160 new/replacement units in a form approved by the City Attorney.

5. Introduce an Ordinance approving the Proposed Development Agreement for the Woodland Park Euclid Improvements Project
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 2: Enhance Economic Vitality
Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
City Council reviewed the Woodland Park Euclid Improvements project at the September 6, 2022 City Council Meeting. Council received staff’s presentation, the applicant’s presentation, heard public comment, and deliberated, but ultimately continued the item, including a limited public hearing, to the September 20, 2022 City Council Meeting. The recording of the meeting and staff report and associated attachments can be accessed here:
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1818 The staff report for the September 6, 2022 meeting also is included as Attachment A, and the analysis below supplements that report and responds to unresolved issues and questions from the September 6th meeting.

Analysis
NCO Zoning District
Consistency with the Westside Area Plan and General Plan Council asked staff how the implementation of the Neighborhood Center Overlay (NCO) District is consistent with the General Plan and the Westside Area Plan. The increased height and intensity of development allowed under the NCO District requires an amendment to the General Plan and accompanying amendments to the Development Code and Zoning Map.

However, Westside Area Plan Goal W-5 and other policies acknowledge that increases in height and intensity over existing zoning may be considered for future developments if certain requirements are met. Goal W-5 states, “The long-term development of new buildings and a new street network to improve housing opportunities and improve quality of life. Intent: To establish a long-term process and framework for future development, to establish clear prerequisites and parameters for any future increases in density and height on the Westside over what is currently allowed in zoning, and to ensure that the community’s vision for the Westside is maintained in the long term” (emphasis added).

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The only mechanism by which a project can increase residential density and associated development standards over existing zoning is the amendment of an existing zoning district, rezoning to a higher intensity zoning district, or rezoning to a new zoning district (unless the applicant uses the State Density Bonus, which limits the City’s discretion and allows a certain number of concessions over development standards depending upon the amount of affordable housing provided). Associated amendments to the General Plan and/or General Plan Land Use Map also are required for consistency. Because the Westside Area Plan clearly sets forth a process and requirements for increases in intensity, the amendments to increase intensity are not inconsistent with the Westside Area Plan. The Westside Area Plan does not set forth a maximum allowable increase in intensity over existing zoning and only sets height maximums for certain areas of the Westside (Westside Area Plan Policy 5.14), which do not include the project site.

The Westside Area Plan does require new developments to provide community benefits. For example, Guiding Policy 11, states “Ensure that new development pays its fair share. New development on the Westside should be required to provide community benefits for Westside and East Palo Alto residents via the leveraging of the Westside’s assets for the maximum benefit of the community.” Policies 5.3 and 5.4 require that developments requesting increases in intensity support the development of new parks, open spaces, infrastructure, and community facilities. The project’s community benefit package includes these benefits through provision of a publicly accessible park, inclusion of a community room, and upgrades to City infrastructure including a new water tank, pump house, and storm drain upgrades.

NCO District Applicability and Required Determinations
Council expressed concern about future development projects requesting application of the NCO District. Staff responded by explaining that any future rezoning could only occur through additional legislative actions for Development Code and Zoning Map amendments in addition to other approvals and processes for major development projects, including preliminary applications required by East Palo Alto Municipal Code Chapter 18.82.030, which are reviewed by Council. In addition, in any instance of perceived conflict between the Development Code and the General Plan, the General Plan policies prevail.

To address the concerns about future NCO requests, staff has strengthened the Development Code’s integration with the General Plan, including the following changes:
• Staff added
language directly
stating that the NCO
Zone may only be
applied to the area
designated by
General Plan Figure
11-12 as eligible for
increases in
intensity on a
project-by-project
basis (shown in
blue)
• Staff added
language restricting

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the application of the NCO district to parcels that do not adjoin low density or medium density residential zones and parcels that are not located near the San Francisquito Creek.

Additionally, in response to Council’s request, staff has strengthened the requirement for income-restricted affordable housing to require consistency with the City’s Inclusionary Housing ordinance within the required determinations of the Development Code Amendment.

Development Agreement
Gross Receipts Tax Applicability
Council asked if the Development Agreement would exempt the project from paying a gross receipts tax that is before the electorate in November. Staff determined that if the tax is approved by the voters, the tax will apply to the proposed project. The definition of “Impact Fee” in the Development Agreement explicitly excludes taxes and assessments (Section

4.3.3). The “Freeze Period” in the Development Agreement, which freezes the amount of fees to what is existing when the freeze begins, only applies to Impact Fees.

Preference for Woodland Park Residents at Offsite Affordable Housing Project Language has been added to Section 4.5.3 of the Development Agreement to include a preference for households which, as a result of the Project, were required or elected to move to alternative housing and which are beneficiaries of the Relocation Plan. If such a household desires to reside in the offsite affordable housing, they would have to meet eligibility requirements for tenancy.

Increase the Affordable Housing Requirement
Council discussed increasing the affordable housing obligation from the alternative compliance proposal of 20% of net new units plus rent stabilized units (89 units, minimum 70 off site new units with additional in-lieu fee payment and 160 rent stabilized units on site) to a 25% net new unit requirement, of which any excess in required over constructed units could be met by an inlieu fee payment. The objective is to further incentivize the construction of more units in the offsite affordable housing project or provide the City with additional funds for affordable housing development elsewhere. The developer indicated in conversations with staff that the approximately $5.7 million difference between a 20% and 25% obligation (if met by in-lieu fee payment) would not be financially feasible for the project.

Relocation Plan
Moving Assistance Payments
Council asked if the moving assistance payments would be provided both for move out when a household moves out of an existing unit at Woodland Park and move in when that household returns to their right of return unit. Page 48 and 61 of the Relocation Plan offer the moving assistance options at both move out of existing units and move into a right of return unit.

Relocation Payment Amounts
Council asked how relocation payment amounts would be calculated for members of an extended family that live together in one household. The Ellis Act Ordinance (EPAMC Chapter

14.08) sets forth payment amounts and procedures for relocation payments.

Per EPAMC Section 14.08.060(A)(1), “Each tenant of any residential rental unit who is required to move as a result of the owner's withdrawal of the accommodation from rent or

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lease shall be entitled to a relocation payment from the owner. Only adults and emancipated minors occupying the rental unit at the time of service on the tenants of the notice of intent to withdraw the units from rent or lease shall be entitled to a relocation payment.” The Ordinance defines Tenant as a renter, tenant, subtenant, lessee, or sublessee of a rental unit, or successor to a renter's interest, or any group of tenants, subtenants, lessees or sublessees of any rental unit, or any other person entitled to the use or occupancy of such rental unit and includes a former tenant displaced by the withdrawal of an accommodation from rent or lease.

Pursuant to Section 14.08.060(A)(1) each adult member of a household would be entitled to a relocation payment regardless of how many adult members of the household reside in the unit, as long as such adult household member is entitled to use and occupy the rental unit. Whether each adult member of a household is entitled to use and occupy the rental unit will depend upon application of the Rent Stabilization Ordinance which provides that it is not a lease violation for certain relatives to move in with a tenant.

Section 14.08.060 (A)(2) provides that certain qualified tenants are entitled to relocation payments. Qualified Tenants include a person less than 18 years of age who is a dependent.

Qualified Tenants are entitled to additional modified relocation payments, so children under the age of 18 would be eligible for a relocation payment as a Qualified Tenant. The amount for Qualified Tenants is approximately $3,300. Other Qualified Tenants are those who are lowincome, disabled, elderly and terminally ill, as defined in Section 14.08.030.

Resident Census
Council asked the status of a resident census requested at a previous Council Study Session.

Staff updated the table below, which shows prior and current occupancy at the Woodland Park Euclid Improvements Area. This table was presented at the February 15, 2022, City Council meeting. As described by the applicant, after the decision to undertake the proposed project was made, units that became vacant were not marketed for rent again, and thus, occupancy has fallen at the project site since 2017. In response to concerns of displacement from Council, the applicant added a right of return option for eight households who moved away from the Euclid Improvements area between project announcement (December 2018) and the date Woodland Park sent the final, signed relocation commitments to all affected households (October 2019).

Table 1: Woodland Park Euclid Improvements Area Occupancy Statistics Total
Households
Occupancy
%
Occupancy History of Units within Euclid
Improvements Area
2016 150 94%
2017 147 92%
December 2018 115 72%
January 2022 Occupancy Breakdown
January 2022: Occupied Units within Euclid
Improvements Area or within Relocation Apartments
87 54%
within Improvements Area 61 38%
within Relocation Apartment as part of Tenant
Requested Move (TRM)
26 --

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Total
Households
Occupancy
%
Occupancy History of Units within Euclid
Improvements Area
January 2022: Households No Longer Residing
within the Euclid Improvements Area or Relocation
Apartments
28 --
TRM Households that left Relocation Apartments in
2020
3 --
Households that have left Improvements Area since
Dec. 2018
25 --
September 2022 Occupancy Breakdown
September 2022: Occupied Units within Euclid
Improvements Area or within Relocation Apartments
85 53%
within Improvements Area 58 36%
within Relocation Apartment as part of TRM 27
September 2022: Households No Longer Residing
within the Euclid Improvements Area or Relocation
Apartments
30 TRM Households that left Relocation Apartments in
2020
3 Households that have left Improvements Area since
Dec. 2018
27 Since the February 2022 meeting, two households have left the Euclid Improvements Area, and one household has participated in the optional tenant move program. Eighty-five households are currently eligible for relocation benefits as current tenants, and eight households which left between the date Woodland Park announced the Euclid Improvements (December 2018) and date Woodland Park sent the final, signed relocation commitments to all affected households (October 2019) are eligible for Right of Return units.

The applicant shared tabulated results from a survey that tenants fill out at move-out that provides tenants’ reasons for leaving the Euclid Improvements Area. This aggregated data was included in the packet for the February 2022 meeting on the Relocation Plan and is included here as Attachment U. The applicant is only able to share tabulated data because of privacy and confidentiality concerns, especially as information shared with the City is subject to California Public Records Act requests. The aggregated data indicates that of the households that moved out of the Euclid Improvement Area since the applicant acquired the property, the most common reasons for leaving were:
• Relocate City / State (12%)
• Moved to Another Community (12%)
• Job Transfer or Job Loss (12%)
• Bought or rented home/condo (7%)
• Closer to work/school (7%)
All aggregated data is available in Attachment U.

8.1 Packet Pg. 110
TDM Plan
Council asked staff several questions regarding the Transportation Demand Management (TDM) Plan. In response, staff has worked with the applicant to eliminate the erroneous reference to affordable housing as a TDM measure given that the project’s income restricted affordable housing will be located off-site. Council also asked why the developer gets such a high number of points (6.5 points) for unbundling parking. The point amount is set by the Residential TDM Program Guidelines, Exhibit A of the TDM Program Guidelines, adopted by Council on June 1, 2021. Unbundled parking is assigned a high point allotment due to efficacy of the measure. Council is able to require additional TDM measures at its discretion. The applicant also is required to participate in a TMA (if formed) by Condition of Approval 17.

Attachments
A. September 6, 2022 Staff Report
B. CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program
C. Draft EIR
D. Final EIR
E. General Plan Amendment Resolution
F. Development Code Amendment Ordinance
G. Zoning Map Amendment Ordinance
H. Resolution Approving Project, Required Findings, and Conditions of Approval I. Ordinance Approving Development Agreement (with Development Agreement) J. Architectural Plans (click link here)
K. TDM Plan and Parking Demand Analysis
L. Relocation Plan
M. Affordable Housing Alternative Compliance Milestones N. Fiscal Impact Analysis
O. Community Impact Report
P. Community Involvement Strategy
Q. General Plan Consistency Analysis
R. Planning Commission Resolution
S. Planning Commission Meeting Public Comments
T. City Council Meeting Public Comments
U. Aggregated Tenant Move Information

8.1 Packet Pg. 111

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Kelly Beggs, Consultant Planner
Elena Lee, Planning Manager
SUBJECT: Woodland Park Euclid Improvements
Recommendation

1. Adopt a resolution:
- Certifying that the Final Environmental Impact Report (FEIR) has been done in compliance with the California Environmental Quality Act (CEQA); - Adopting a Mitigation, Monitoring and Reporting Plan pursuant to Public Resources Code 21000 and the CEQAGuidelines (California Code of Regulations, Title 14, Section 15000);
- Adopting a Statement of Overriding Considerations;
- Directing the Community and Economic Development Director to File a Notice of Determination within five working days of adoption pursuant to Section 15075 of the CEQA Guidelines

2. Adopt a Resolution approving the General Plan Amendment (GP19-001) establishing the Neighborhood Center Overlay Land Use Designation;

3. Introduce Ordinances enacting the Development Code and Zoning Map amendments (ZC19-002) establishing the Neighborhood Center Overlay District;

4. Adopt a resolution:
- Approving the Design Review Permit (DR 19-028), Conditional Use Permit (CUP22- 003), and Tentative Parcel Map (TTM19-001) based on the findings, requirements and conditions of approval which are Attachments to the resolutions and incorporated by reference;
- Approving the Relocation Plan dated September 2022; and - Authorizing the City Manager to execute a Notice of Special Restrictions applying the City's Rent Stabilization Ordinance to 160 new/replacement units in a form approved

8.1.a
Packet Pg. 112 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) by the City Attorney.

Priority No. 2: Enhance Economic Vitality
Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Proposal and Project Detail
The Applicant is seeking City approval of the following Project, as described in Table 1:

TABLE 1: PROJECT DATA
Project Element Detail/Description
Applicant / Owner Woodland Park Communities/Sand Hill Property Company (“Applicant,” “Developer”)
Location 2001 Manhattan Avenue and 375 Donahoe Street
(“Site”, “Property”)
Assessor’s Parcel Numbers (APN) Mixed-Use Development Site: Avenue/063-281-020, - 030, -040, -100, -110; 063-282-010, -020, -030, -040, - 050, -060, -070, -080 and -090
Water Tank Site: 375 Donahoe Street/ 063-148-110, -
120, -130
Size of Site 3.92 acres
Existing Use Multi-family residential
General Plan Designation High Density Residential and Urban Residential Existing Zoning R-HD-5; R-UHD
Surrounding Zoning C-O, R-HD-5, C-N and R-UHD
Special Designation None
Requested Entitlements
• General Plan Amendment
• Development Code and Zoning Map Amendment
• Design Review Permit
• Conditional Use Permit for Demolition of
Affordable Units
• Certification of an Environmental Impact Report
• Adoption of CEQA Findings and Statement of
Overriding Considerations
• Tentative Map
• Development Agreement
Number of Stories / Height Bldg. 1: 9 – 13 stories/ 88-135 feet Bldg. 2: 13 stories/ 135 feet
Bldg. 3: 5 stories/ 55 feet
Residential Units 605 units
Number of Parking Spaces 625 spaces
Number of Bicycle Parking Spaces 324 long-term; 45 short-term Developer Seeking Deviations from Yes, increases in height and residential density;

8.1.a
Packet Pg. 113 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) TABLE 1: PROJECT DATA
Project Element Detail/Description
Existing Requirements? decreases in setbacks and required off-street parking Background
In January 2019, Woodland Park Communities/Sand Hill Property Company (“Applicant”) submitted a Planning pre-application for the Project. Following the preapplication review process, the Applicant formally submitted a Planning application in September 2019. Since 2020, the City Council and Planning Commission have held multiple Study Sessions regarding different aspects of the Project (e.g. infrastructure, affordable housing, urban design), as described below:
• May 6, 2019: Planning Commission Pre-application Study Session http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1227 • February 25, 2020: City Council Study Session
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1068 • September 10, 2020: City Council Study Session on Inclusionary Housing Plan http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1316 • October 6, 2020: City Council Study Session on Inclusionary Housing Plan http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1284 • November 19, 2020: City Council Study Session on Infrastructure http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1340 • February 23, 2021: City Council Study Session on Inclusionary Housing Plan and Fiscal Impact Report
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1357 • June 22, 2021: City Council Study Session on Inclusionary Housing Plan http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1403 • July 26, 2021: Planning Commission Draft EIR Public Hearing http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1369 • October 5, 2021: City Council Study Session on Inclusionary Housing Plan http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1427 • November 30, 2021: City Council Study Session on Tenant Relocation Plan http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1458 • February 15, 2022: City Council Study Session on Tenant Relocation Plan http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1488 • June 27, 2022: Planning Commission Policy and Action Discussion http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1832 • July 25, 2022: Planning Commission Public Hearing on Project http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1855 The project details, including the Draft EIR (DEIR), Final EIR (FEIR), and Fiscal Impact Analysis are available at the project website:
https://www.cityofepa.org/planning/project/woodland-park-euclid-improvements-generalplan-amendment-zoning-amendment-and Pursuant to East Palo Alto Municipal Code (EPAMC) Section 18.82.020, the Planning Commission made a recommendation to City Council for certification of the FEIR and

8.1.a
Packet Pg. 114 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) approval of the legislative actions for the project, consisting of General Plan Amendment, Development Code Text/Zoning Map Amendments, and Development Agreement. According to EPAMC Section 18.86.060, if an application usually subject to determination by the Planning Commission is filed concurrently with a discretionary land use application that requires Council approval, the decision over all entitlements is made by the higher authority, the City Council. Therefore, the City Council is also the approval authority for the Design Review, Conditional Use Permit, and Tentative Map applications for the project.

Planning Commission and City Council authority over this project’s various aspects is shown below.

TABLE 2: Authority over Entitlement
Approval
Planning
Commission
City Council
Quasi-Judicial Permits and Actions
Conditional Use Permit Recommend Decide
Design Review Recommend Decide
EIR Recommend Certify
CEQA Findings and Statement of Overriding
Consideration
Recommend Adopt
Tentative Map Recommend Decide
Legislative Actions
Development Agreement Recommend Decide
Development Code Text/Zoning Map
Amendment
Recommend Decide
General Plan Text/Map Amendments Recommend Decide
Plans and Reports
Tenant Relocation Plan (WSAP Policy 5.5 and

5.10)
Informational Decide
Community Impact Report (WSAP Policy 5.5) Informational Decide Fiscal Impact Analysis Informational Informational
Existing Conditions
The subject properties consist of 15 buildings with a total of 161 existing residential units. The majority of the existing buildings are approximately 50 years old, with a few structures that are up to 100 years old. Existing structures range from one to four stories in height and have a simple architectural style. The buildings are part of the larger Woodland Park community, which consists of mostly of multiple-family residential uses in an established residential neighborhood. Surrounding land uses are also primarily residential, with some local serving neighborhood commercial, as described in Table 3 below. The Four Seasons Hotel/University Circle complex, a mix of office and hotel uses, is located immediately to the southeast.

TABLE 3: Existing Uses Surrounding the Project Site
Direction General Plan Designation Zoning District Existing Use North
High Density Residential R-HD-5 2- and 3- story multiple-family residential
US 101
South High Density Residential R-HD-5 2-story multiple-family residential

8.1.a
Packet Pg. 115 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) TABLE 3: Existing Uses Surrounding the Project Site
Direction General Plan Designation Zoning District Existing Use Neighborhood Commercial C-N Laundromat, Grocery store
East Office C-O Four Seasons Hotel
University Circle Office Complex
West High Density Residential R-HD-5 3-story multiple-family residential Urban Residential R-UHD 2-story multiple-family residential Project Description
Proposed Buildings
As proposed, the project would merge 14 individual parcels into two parcels on both sides of Euclid Avenue. The existing individual buildings on these parcels would be demolished and three new buildings would be constructed, as shown in the figure below.

The project would be divided into two main sections on both sides of Euclid Avenue.

The south side of Euclid would contain most of the development, including residential structures with a lobby/common area, central parking garage, community space/neighborhood serving retail and open space/park area.

BLDG 2
BLDG 3
BLDG 1

8.1.a
Packet Pg. 116 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) Building 1 ranges in height from nine levels with a height of approximately 85 feet to 13 levels with a height of 120 feet to roof level (130 feet to parapet). This building wraps around the central parking garage on three sides and includes ground floor retail and community function space along the O’Connor Street frontage. Building 1 connects to Building 2 with elevated walkways at Levels 3 through 9. Building 2 is 13 levels in height and approximately 120 feet at the roof level and 135 feet to top of parapet. North of Euclid Avenue is Building 3, a single residential building with a lobby area and community garden space. This building is five levels and approximately 55 feet in height.

Access, Circulation and Parking
The project would maintain the local circulation network without altering existing routes or traffic flow. A 625-space central parking garage would be located in the center of the project with main garage access off Manhattan Avenue, resulting in fewer driveway access points along local roads. 52 on-street parking spaces would be provided on Manhattan and Euclid avenues to optimize and increase street parking. Drop off zones are provided near building entrances. Pedestrian access would be provided through common plaza areas and perimeter sidewalks enhanced with landscaping.

Existing sidewalks would be maintained on both sides of the street and additional improvements would be constructed to improve pedestrian facilities adjacent to the project. These improvements include constructing high visibility crosswalks along Euclid Avenue at O’Connor Street and O’Keefe Street and bulb-outs for the north leg of the intersection of Euclid Avenue and O’Connor Street. The project would provide a highvisibility crosswalk with appropriate traffic calming measures at the intersection of O'Connor Street and Manhattan Avenue to connect the project to the University Circle complex, to facilitate greater neighborhood connection and to provide a convenient path for nearby residents to access the future University Avenue pedestrian and bike overpass. The project would also include bicycle parking for residents, employees, and customers.

Landscaping, Open Space, and Tree Protection and Removal The project is proposing a combination of Common Open Space, Private Open Space and Publicly Accessible Open Space. Common Open Space is shared area for the use of residents and guests, while Private Open Space includes enclosed areas adjoining individual units reserved for the exclusive private use of residents (such as balconies, decks, porches, etc.). The project will provide 13,807 square feet of private open space and 47,233 square feet of common open space. In addition, a 9,300 square-foot park would be located at the southwest corner of the project site, which would be publicly accessible, but owned, operated, and maintained by the applicant. The applicant will dedicate a public access easement over the park to the City or enter into a license agreement to provide public access.

Landscaping within the site plan and along perimeter streets would consist of trees, groundcovers, perennials, and shrubs. Tree species include white ash, marina strawberry, blue oak, red push pistache, kindred spirit oak and ironwood. 40 existing trees would be preserved on the project site, and 26 trees are proposed for removal, 21 of which are protected. Protected trees proposed for removal fall within proposed building footprint and infrastructure improvement areas. 42 new trees are proposed to be planted as part of the project’s landscaping plan. New trees would be 24” box size

8.1.a
Packet Pg. 117 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) specimens.

Tree removal was analyzed in the Environmental Impact Report. The threshold for protected trees and replacement tree standards would remain the same under the City’s new Tree Protection Ordinance, which takes effect October 1, 2022.

Water Storage Tank
The City has sufficient water supply to serve the project, however, a 1.5-million-gallon steel water storage tank located at 375 Donohoe Street would be constructed concurrent with the project to improve fire flow and pressure to the project, as well as the extended City system. The tank and related infrastructure and points of connection would be funded and constructed by the applicant. This tank and related pump infrastructure would tie into the existing water system to service the project and improve water system performance City-wide as a public benefit. Connections for service to the project currently exist within public rights of way and would be upgraded as necessary to service the project’s demands. Several new points of connection will be required to existing infrastructure in Euclid Avenue, Manhattan Avenue, O’Connor Street and West Bayshore Road. Construction would include installation of a 14-inch water main from the tank site, continuing within Donohoe Street and West Bayshore Road, ultimately connecting to upsized 12-inch mains that surround the project site. The project would install 1,090 linear feet of new or upsized 14-inch pipe, and 1,700 feet of upsized 12- inch pipe.

Applicant Community Outreach Meetings
The applicant implemented a robust community outreach plan, including a website and newsletter to regularly communicate with residents and the public. The applicant held 32 community meetings, information booths, and small group listening sessions prior to submittal of the proposed project application as well as five additional community meetings and information sessions following application submission. The applicant also has a community newsletter and a separate project website (nodisplacement.com) which allows the community to view project updates, including a video update shared during the pandemic and a recorded Zoom community meeting, and the project team’s contact information for comments, questions, and suggestions. Community feedback focused on displacement prevention, relocation, housing stability, parking/mobility, safety, community change, neighborhood beautification, project amenities, public open space, and street design.

June 27, 2022 Planning Commission Policy and Action Meeting Staff gave a presentation on the Project as a Policy and Action Item at the June 27, 2022 Planning Commission Meeting to provide the Commission with a preview of the project and learn what information would be helpful to Commissioners moving towards a decision-making meeting. The Commission discussed the following topics:
• Water Tank. The Commission asked the Applicant and staff to post public notice signage at the water tank site and to provide more information and graphics depicting the 1.5-million-gallon tank. The Applicant posted signage at the site for subsequent meetings. Updated site plans and renderings are included with the revised plans.

Notices were mailed to all residents and property owners within 600 feet of the water tank site for subsequent meetings. Staff clarified at the meeting that the water tank will not connect to the aquifer. The tank would be 90 feet in diameter and would be 32 feet in height. Mitigation Measure AES-2.2 requires landscape screening of the water tank

8.1.a
Packet Pg. 118 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) with native, taller species or trees to provide a visually appealing screen as viewed from the roadway and surrounding land uses after construction, as well as construction screening.
• Relocation Benefits. The Commission asked who was eligible for relocation benefits and what would occur if a tenant with a growing family needed a larger unit. o Eligibility. Three groups of tenants are eligible to move into a right of return unit after the Project has been constructed:
 Existing tenants who have participated in the Applicant’s early move program. These tenants have chosen to move out of the Euclid Improvements area early to other units in the Woodland Park Community.  Existing tenants who have not moved out of the Euclid Improvements area.
 Tenants who moved out of the Euclid Improvements area between the date Woodland Park announced the Euclid Improvements (December 2018) and date Woodland Park sent the final, signed relocation commitments to all affected households (October 2019). There are 8 households in this situation, and the extension of the right of return apartment to those households has been made in response to Council’s requests and to protect against the possibility that a household that vacated due to incomplete information would be prevented from long-term residency in East Palo Alto.
o Unit size. Units are required to be comparable in size in terms of square footage and in the number of bedrooms. While the applicant indicated a willingness to work with tenants if a larger unit was needed, those units would not be guaranteed at a below-market rent.
• Height and intensity of proposed development. The Commission discussed the buildings’ height and intensity and its impact on the existing neighborhood character.

The Applicant responded noting that the taller buildings are intentionally located closer to US 101 and the University Circle campus and that the tallest building is equal in height to the Four Seasons Hotel. The smaller five-story building is located to provide a transition in height down to the surrounding residential area.

July 25, 2022 Planning Commission Public Hearing
The Planning Commission adopted a resolution (Attachment R) recommending approval of the project and its entitlements at the July 25, 2022, Public Hearing (Ayes: 4; Noes: 2; Absent: 1; Abstain: 1). The Commission discussed the following topics:
• Parking and Traffic. The Commission discussed parking and traffic as major areas of concern. The Applicant’s Transportation Demand Management (TDM) Plan will be subject to Condition of Approval 29, which requires approval prior to building permit issuance. As described below, the Applicant’s TDM Plan includes reduced parking as a TDM measure (1.1 spaces per residential unit), and the Applicant’s parking study showed that the proposed parking supply will meet residential parking demand even before implementation of other TDM measures. In addition, the project will make a fair share contribution to intersection improvements that would improve the intersection operations to an acceptable Level of Service (LOS) function or otherwise improve preproject conditions. The Commission was also concerned about the potential loss of onstreet parking. The commission also discussed a permit parking program to better regulate street parking.
• Construction Impacts. The Commission discussed construction impacts to the

8.1.a
Packet Pg. 119 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) neighborhood, especially focusing on air quality and asthma, as well as other public health outcomes. The project’s operational and construction impacts on Air Quality were analyzed under the project’s EIR and were found to be less than significant with mitigation. The project’s Mitigation, Monitoring, and Reporting Program includes measures and conditions of approval requiring management of construction dust, construction equipment requirements to lessen air pollution, and noise control measures. These measures have been included as Conditions of Approval.

Public comments were made at the hearing regarding the following topics:
• Water tank information availability and safety
• Parking issues in neighborhood
• Support for additional housing with expansion of rent controlled units and incomerestricted affordable units • Support for project’s transportation and climate benefits and lower parking ratio than County average
• Ensuring strong labor standards and apprenticeships
• Tenant comments supporting project approval due to new/improved housing units, employment for the community, and aesthetic improvements Written public comments submitted prior to or during the Planning Commission meeting are included as Attachment Q.

Analysis
General Plan and Development Code Amendments
The project includes an amendment to the Development Code and General Plan to create a Neighborhood Center Overlay (NCO) designation to increase density and building heights beyond the currently allowed standards in the High Density Residential (HDR) and Urban Residential (UR) land use designations for the Project site. Amendments to the Development Code and General Plan are provided in full in Attachments D and E. The NCO Zone would be available to projects in the Westside Area on a project-by-project basis. Any application for a zone change requires approval by City Council and consistency with the Westside Area Plan prerequisites and policies described below.

The NCO designation would support development of higher density housing and encourage mid-rise and high-rise residential development with neighborhood-serving commercial and community uses at the ground floor. Permitted uses would be the same as those in the R-HD and R-UHD zoning districts, with the addition of neighborhood service uses at the ground floor as a permitted use rather than a conditionally permitted use.

Table 4 provides a comparison of the existing zoning districts to the proposed overlay zone, as well as the proposed project’s development standards.

TABLE 4: Existing and Proposed Zoning Comparison
Development
Standard R-HD-5 R-UHD
Applicant’s
Proposed
NCO Zone
Proposed
Project
Staff
Recommended
Changes to
NCO Zone
Maximum
Density 44 du/acre 86 du/acre 180 du/acre 175 du/acre 175 du/acre

8.1.a
Packet Pg. 120 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) TABLE 4: Existing and Proposed Zoning Comparison
Development
Standard R-HD-5 R-UHD
Applicant’s
Proposed
NCO Zone
Proposed
Project
Staff
Recommended
Changes to
NCO Zone
Setbacks
Front 15 feet 20 feet 5 feet 9-12 feet
Side/Street
Side
10 feet/15
feet
10 feet/15
feet 5 feet 10-85 feet
Rear 20 feet 20 feet 5 feet 10-20 feet 10 feet
Rear
Adjoining
R-LD or RMD
Zone
N/A (Does not
adjoin R-LD or
R-MD)
20 feet
Height
5 stories or
50 feet,
whichever
is greater
7 stories or
75 feet,
whichever is
greater
15 stories or
135 feet,
whichever is
greater
Bldg. 1: 9-13
stories/ 88-130
feet
Bldg. 2: 13
stories/ 135
feet
Bldg. 3: 5
stories/ 55 feet
13 stories or
140 feet,
whichever is
greater
Common/
Private Open
Space
150 sf/unit 100 sf/unit 100 sf/unit 100 sf/unit
Parking
1 space per studio unit

1.5 spaces per 1-bedroom
unit

1.8 spaces per 2-bedroom
unit
2 spaces per 3 to 4-
bedroom unit
1 space per
unit
1 space per
unit
Per Chapter

18.30 unless
modified by a
TDM plan, as
set forth in
Section

18.30.100, or
Conditional Use
Permit
As shown in the last column of Table 4 above, staff made several modifications to the applicant’s proposed amendments within the General Plan and Development Code Amendments to reduce intensity and increase context-sensitivity for future development applications seeking the NCO Zone. Those changes include:
• Reducing the maximum residential density from 180 dwelling units per acre to 175 dwelling units per acre;
• Increasing the rear setback to 10 feet;
• Adding an increased rear setback requirement of 20 feet for projects with rear yards adjacent to residential low density or medium density zones; • Reducing the height limit as measured in stories from 15 to 13 stories; and • Requiring that future projects either comply with the Development Code’s existing offstreet parking requirements or request parking reductions through TDM Plan modifications to requirements or through Conditional Use Permits.

Even with those changes, the proposed NCO Zone would increase intensity of development on the project site compared to existing regulations. The Westside Area

8.1.a
Packet Pg. 121 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) Plan sets forth a process and requirements for projects that request increases in intensity above existing general plan and zoning regulations, as described below.

Westside Area Plan Consistency with Policies for Increasing Intensity The Westside Area Plan (WSAP) provides prerequisites and a process for new developments that increase intensity over allowed zoning in Policies 5.2-5.5. Further general plan consistency analysis is included in Attachment P.

WSAP Policy 5.2
WSAP Policy 5.2 states development projects proposing increases in intensity “must undergo a rigorous public process and meet the anti-displacement goals of this Chapter and all other applicable City policies and regulations.” The project has undergone a rigorous public process to date with over 12 public meetings, in addition to applicant-led community outreach prior to entitlement hearings. The tenant relocation plan and right of return for existing tenants meet the WSAP’s anti-displacement goals.

WSAP Policy 5.3
WSAP Policy 5.3 sets forth the following prerequisites:
• Prevents displacement of existing residents.

The project would provide right of return units as well as temporary units for all existing residents at consistent sizes and rents. The applicant will provide an anti-displacement incentive in the form of a rent rebate for all tenants who move into their right of return units.
• Provides for some income-restricted affordable housing.

The project would provide income-restricted affordable housing for households earning 35 to 60 percent of area median income (AMI) at an offsite location and provide an inlieu fee payment for any units constructed less than 89 units. • Preserves “right of return” for existing residents.

The project would preserve right of return for existing residents consistent with the requirements of the Westside Area Plan.
• Maintains the City’s rent stabilization program.

The project would construct 160 rent-controlled units, replacing demolished rentcontrolled units on a one-for-one basis. (There are 161 units proposed for demolition on the project site, one of which is a single-family home not subject to rent control.) • Includes new parks and open spaces or contributes to the provision of new parks and open spaces if it is a single project.

The project includes a new publicly accessible 9,300-square foot park. • Improves streets and infrastructure or contributes to the provision of new streets and infrastructure if it is a single project.

The project includes a water tank to improve fire flow and pressure to the project as well as the extended City system. The final details, materials, and design of the tank would be subject to future approval by the City. Street landscaping improvements and bus shelter improvements also are included.
• Improves the fiscal health of the City.

A fiscal impact analysis showed the project would have a positive net impact on the City of East Palo Alto’s General Fund, resulting in an estimated $1,109,000 in annual General Fund revenues in excess of the estimated annual General Fund expenditures. • Beautifies the area.

8.1.a
Packet Pg. 122 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) The project would add street trees, renovate streets to add additional parking spaces, replace aging structures with new high-quality buildings, and add parks and open space, consistent with the Westside Area Plan.

WSAP Policy 5.4
WSAP Policy 5.4 Sets forth the development process for increased intensities as follows:
• For areas on the north side of University Avenue or south of Clark Avenue to San Francisquito Creek, proposed increases in intensity over the currently allowed zoning intensity may be approved on a project-by-project basis. These projects shall be required to meet the policies set forth in this document in addition to any other city policies and shall be required to enter into a development agreement and/or pay fees to support the development of new parks, open spaces, infrastructure and community facilities necessary to support a higher level of development on the Westside.

The project is located on the north side of University Avenue and is in the “project-byproject” basis category, as listed on WSAP Figure 11-12 below. The proposed NCO zoning district would be applied for on a project-by-project basis, and any new development seeking to apply this zone to a site would be required to meet the requirements of the Westside Area Plan and other City policies and receive City Council approval. An analysis of the project’s consistency with the General Plan is presented in Attachment P.

WSAP Policy 5.5
WSAP Policy 5.5 sets forth the following application requirements for projects requesting increased intensities. These requirements have also been incorporated into the proposed

8.1.a
Packet Pg. 123 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) Development Code Amendment as required findings in the NCO Zone:
• Proposed general plan and zoning for each parcel, including uses, building heights, and maximum development intensities.

The general plan designation and zoning for each parcel would be the current designation or district with the NCO suffix to indicate the NCO overlay zone which has a maximum building height of 13 stories or 140 feet.
• Development program that identifies parcel-by-parcel information on existing and proposed uses.

Sheet A100 of the project plans (Attachment I) includes parcel by parcel information on existing uses and sheet A101 identifies proposed uses.
• Affordable housing plan, including the amount, levels of affordability and location of each housing unit.

The project’s affordable housing plan is included in Section 4.5 of the Development Agreement. The project will meet the City’s Inclusionary Housing ordinance through provision off-site affordable housing and alternative compliance, as described below, and 160 units will be rent controlled at the project site. • Relocation plan for existing tenants that incorporates policies 5.10, 5.11, and 5.12 of this chapter.

The project includes a tenant relocation plan that addresses policies 5.10, 5.11, and

5.12 of the Westside Area Plan by providing existing tenants with the right of return to a unit of the same size and affordability, providing temporary housing, and providing moving and relocation services at no cost to the tenant. The application also includes a housing and neighborhood amenities, consistent with policy 5.12. • Fiscal impact analysis for the City
The fiscal impact analysis is included in Attachment M and described below. • Description and analysis of how the City’s rent stabilization program may be continued in the future, including sources of funding.

The Rent Stabilization Program is funded by annual registration fees paid on a per-unit basis on each rent-stabilized unit in the City. The project would replace every rentcontrolled unit on a one-for-one basis to ensure the ongoing viability of the Rent Stabilization Program and sustain the Rent Stabilization Program’s funding at its existing level. By maintaining the scope of the program and its funding source, the Euclid Improvements proposal would help sustain the program. • Park and open space plan, including the number, acres and locations of new parks and open spaces (or contribution to parks and open spaces for singleparcel projects).

The project will provide a new 9,300 square foot publicly accessible park. • A water supply assessment with guarantees of long-term water availability and new sources of water.

The applicant provided a water supply assessment, and long-term water availability was also evaluated in the Environmental Impact Report. The EIR found that the project would have sufficient supplies through all water years. The off-site water tank would improve water system storage and fire flow.
• Infrastructure improvement plan, including detailed information on all infrastructure and utilities (or contribution to Westside infrastructure improvements).

The project includes upgrades to storm drain lines, a new 1.5-million-gallon water tank, streetscape, sidewalks, and bike and pedestrian infrastructure. Plan sheets C.2 and C.4 include details on these improvements.

8.1.a
Packet Pg. 124 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) • Street network plan, including proposed street cross sections.

No new streets are proposed as part of the project.
• Community Impact Report that details how the project applicant will satisfy the prerequisites for increases in intensity or change in use in Policy 5.3.

The applicant’s community impact report is included as Attachment N. As described above, the project meets the prerequisites for increases in intensity or changes in use. • Community involvement strategy.

The applicant’s community involvement strategy is included as Attachment O and includes bilingual community engagement around relocation commitments and project design since 2017.
• Any additional information and level of detail requested by the City to ensure that the proposed project meets the vision of the community.

Site Design and Architectural Standards
The project has been designed to comply with the proposed NCO development standards as well as with the existing Site Design and Architectural Standards for Multiple-Family Residential Zones, set forth by EPAMC Section 18.10.040(D), as described below. Please see Attachment I for a copy of the architectural drawings submitted for the Project.

The main entries to the multiple-family development are clearly delineated and identifiable and are easily accessible for pedestrians from the public street. Individual entries to townhouse units are accessible from the street or enclosed corridors are provided for units on upper levels. Parking is consolidated into one garage to minimize driveways conflicting with pedestrian circulation and optimize on street parking. The building is designed to wrap the parking garage, which minimizes the visual impact of the project’s parking area. Driveways and drive aisles meet or exceed the minimum width required by EPAMC Section 18.30.090, and circulation is provided for both vehicles and pedestrians throughout the site. The Project also provides a combination of private and common usable open space.

The greater height and density of the development is oriented towards the University Circle Complex and US 101, with the smaller scale Building 3 transitioning into the neighborhood’s existing development. The architectural design features contrasts in building sizes and shapes. The taller high-rise structures of Building 2 have a more modern appearance with smoother textures, more steel and glass, cement board, lighter colors, and more vertical design elements. The lower-height residential buildings incorporate warmer, darker colors and richer textures including textured concrete with vine cover, vertical wood siding, brick veneers and painted perforated metal screening.

The facades are articulated, with recesses for courtyards, and blank walls are avoided along public rights-of-way. The roof design is compatible with the building’s modern style, and roof-mounted mechanical equipment is screened from view from public rightsof-way and adjacent properties by materials architecturally compatible with the structure they serve.

The landscaping plans include planting 42 24-inch box replacement trees and complete re-landscaping of the project site’s frontage on Manhattan Avenue, Euclid Avenue, O’Connor Street, and West Bayshore Road.

Tentative Parcel Map

8.1.a
Packet Pg. 125 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) The application for the proposed project includes a Tentative Parcel Map, which would merge the nine parcels on the east side of Euclid Avenue into one parcel and the five parcels on the west side of Euclid Avenue into a second parcel. The Tentative Parcel Map would dedicate additional right of way to the City that was previously under private ownership, since under current conditions parcel lines for some parcels extent to street centerlines along O’Connor Street and Euclid Avenue.

Parking Analysis
Per EPAMC Section 18.30.100, off-street parking requirements can be modified by a project’s TDM Plan. The applicant provided an analysis of parking demand with the TDM plan (Attachment J), which found the amount of parking provided (625 spaces) exceeds parking demand (592 spaces) from the residential portion of the proposed project and the non-residential parking demand would be satisfied by on-street parking.

The City’s consultant has peer reviewed and verified this study.

Utility Service and Improvements
Fire Water Pressure
As described above, the project includes the construction of a 1.5-million-gallon water tank and pump station to serve both the project site and to improve water system performance City-wide as a public benefit. As shown on Sheet WT-001 of Attachment I, the water tank would be approximately 90 feet in diameter and 32 feet in height. As required by Mitigation Measure AES-2.2, the tank is required to be screened both during construction and operation. The operational screening must be a combination of fencing and vegetation to soften and screen the appearance of the water tank and related improvements, with native, taller species or trees to provide a visually appealing screen as viewed from the roadway and surrounding land uses.

The final tank design, materials, and landscape screening will be subject to future approval by the City and Menlo Park Fire as set forth in Conditions of Approval 25 and 69.

Sanitary Sewer
The East Palo Alto Sanitary District (EPASD) stated the sanitary sewer conveyance system (e.g., sanitary sewer pipes and pump stations) downstream of the project site does not have capacity to handle flows from additional development. The applicant will be required to obtain all required permits including a Will Serve letter from the EPASD prior to the issuance of a building permit. As described below, EIR Mitigation Measure UTIL-3.1 requires that the project make a fair share contribution for construction of physical sewer line improvements (pipe upgrades) immediately downstream of the project, provide fair share funding toward system wide sanitary sewer system improvements, or a reasonable combination of both to adequately serve the site’s sanitary sewer demand.

Affordable Housing and Tenant Relocation Benefits
Affordable Housing
The project will provide both 160 on-site rent-controlled units, as well as up to 89 off-site income restricted units to comply with the City’s Inclusionary Housing Ordinance through alternative compliance, as described by EPAMC Section 18.37.080. For alternative compliance options, the inclusionary housing requirement is increased from 20% to 25% of net new units (111.25 units for this project). However, section 18.37.080(D) states that a developer may propose a different alternative compliance option, which the approval body may approve if the alternative compliance will provide greater public benefit than would provision of the inclusionary units on-site. The Development Agreement Ordinance (Attachment H) includes this required finding, which can be made due to the preservation of on-site rent-controlled units

8.1.a
Packet Pg. 126 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) and the provision of off-site income-restricted units.

The applicant’s proposal includes construction of 70 to 89 affordable housing units (89 units is 20% of the 444 net new units) by an affordable housing developer at an off-site location. The Applicant will donate the land for the Off-Site Affordable Units to an affordable housing developer and provide gap financing. A per unit in-lieu fee payment would be made to the City if less than 89 affordable housing units are constructed at the off-site location. The project would replace the site’s existing rent-controlled units on a one-for-one basis, including a total of 160 rent-controlled units in the proposed project. Some of the rent-controlled units would serve as right of return units for existing tenants (see discussion below).

The Applicant proposes the combination of rent-controlled units on site, which would provide housing security for new and existing tenants, in addition to off-site affordable units to meet the required finding of achieving a greater public benefit than on-site inclusionary housing, as described by EPAMC 18.27.080. The Development Agreement (see Section 4.5) includes both the Affordable Housing Plan and the Inclusionary Housing Plan.

Tenant Relocation Plan
The Applicant’s Relocation Plan was reviewed by City Council at its November 30, 2021, and February 15, 2022, meetings; it was revised according to City Council feedback. The resolution approving the project (Attachment G) includes Council approval of the Relocation Plan.

Per the Applicant’s Plan (Attachment K), all current tenants will have three options:

1. Remain at Woodland Park in a Temporary Apartment with Right of Return. The applicant will provide another unit in the neighborhood for the tenant, and the tenant will have the right to return to a newly constructed unit at the project site.

2. Move Elsewhere with Right of Return. The tenant may find temporary housing independently and retain the right to return to a newly constructed unit at the project site.

3. Move Elsewhere, Waive Right of Return, and Receive Relocation Payment. The tenant can choose to waive the right of return and receive a relocation payment. Tenants who select this option will still have access to the moving assistance options described below.

Rent levels, off-street parking spaces, and number of bedrooms would be consistent among Existing Apartments, Temporary Apartments, and Right of Return Apartments provided by the applicant.1 Temporary Apartments would be located within one mile of Existing Apartments.

Tenants will have three choices regarding moving options:

1. Woodland Park will pay for and arrange moves within East Palo Alto. The services of a licensed mover will be provided at no cost. The licensed mover will be insured and will use its own boxes to pack and move all of the tenant’s belongings.

2. Tenant can arrange for and pay a mover. Woodland Park will reimburse the tenant’s actual moving costs up to the amount of $3,303.61 when the tenant provides receipts for the moving expense. (Amount subject to CPI increase.)
1 Existing Apartment: one of the 160 existing rent-controlled apartments within the Euclid Improvements Area; Temporary Apartment: interim existing apartment in move in condition within one mile of the Euclid Improvements Area; Right of Return Apartment:
newly constructed rent-stabilized unit within the new development project at the Euclid Improvements Area

8.1.a
Packet Pg. 127 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements)

3. Tenants may move themselves and receive a moving assistance payment of $1,982.16. (Subject to CPI increase.)
In addition to City requirements and in response to Council feedback, the applicant will:
• Provide a $1,000 anti-displacement incentive in the form of a rent rebate or housing goods voucher for tenants who move into to Right of Return units; and • Offer Right of Return units to tenants who moved out of the Euclid Improvements area between the date Woodland Park announced the Euclid Improvements (December 2018) and date Woodland Park sent the final, signed relocation commitments to all affected households (October 2019) to ensure that no displacement occurred due to a lack of awareness of relocation benefits.

Economic Impact
Upfront Obligations Associated with Development of the Project The Project will be required to pay all related Development Impact Fees, as shown in Table 5. Many of these Fees are paid directly to the City of East Palo Alto, but there are other impact fees that are paid directly to other taxing entities. Impact Fees for other taxing entities are not included in Table 5 below and include School Impact Fees and Sanitary District Impact Fees. School impact fees are estimated to be over $1.5 million for the proposed project. The East Palo Alto Sanitary District (EPASD) is in the process of adopting new impact fees as of the writing of this report, which are estimated at over $7 million for the proposed project based on a fee set forth in an EPASD staff report published for the August 30, 2022 board meeting.

TABLE 5: Estimated Development Impact Fees and In-lieu Fees for the Project Fee Category Estimated Fee
Inclusionary Housing In-lieu Feea $3,626,000
Parks/Trails $1,446,106
Public Facilities $2,536,118
Storm Drainage $311,417
Water Capacity Fee $2,539,494
Transportation Impact Fee $938,926
Intersection Improvement Fair Share Contribution $159,613 Total Local Impact Fees $11,557,674
a. Based on assumption that off-site affordable housing project will include 75 units Additionally, the Applicant will apply for fee credits, which would reduce the fee amounts by providing physical improvements, as permitted by the Municipal Code, as follows:
• a credit against the water capacity fee and public facility fee for the water tank and pump station
• a credit against the storm drainage fee for the cost of storm drainage infrastructure improvements to reduce storm water impacts and discharge rates • a credit against transportation impact fee for specific streetscape or frontage improvements, including on-street parking that increases the number of on-street stalls beyond what would be provided with parallel parking, bike lanes, and other transportation infrastructure, above City standards
• a credit against parks and trails fees for the cost of constructing the Park Space

8.1.a
Packet Pg. 128 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) The credit amounts will be determined closer to Building Permit issuance.

Annual Obligations and Fiscal Impact Analysis
The Fiscal Impact Analysis (see Attachment M), prepared by the Applicant’s consultant Economics and Planning Systems (EPS) and peer-reviewed by the City’s consultant Keyser Marston Associates, concludes the proposed Project is projected to have a positive net impact on the City of East Palo Alto’s General Fund, resulting in an estimated $ 1,109,000 in annual General Fund revenues in excess of the estimated annual General Fund expenditures required for the City to provide services to the project. This analysis included the offsite affordable housing project component.

Development Agreement and Community Benefits
The application for the proposed project includes a Development Agreement. The Development Agreement process is regulated by EPAMC Chapter 18.108. A Development Agreement is a voluntary contract between a local jurisdiction and property owner that details obligations of both parties, specifies standards and conditions that will govern development of property, locks in current City land use regulations for a set time, and can be used to negotiate community benefits. The proposed Development Agreement is for a term of seven years with automatic extension of five years if the applicant submits a complete application for a building permit within the seven-year term; it also outlines the project’s Community Benefits.

Community Benefits are added value a developer provides to the City beyond what is required by City codes, policies, regulations and the master fee schedule. Westside Area Plan Policy 5.4 specifically requires applicants requesting increases in intensity to enter into a development agreement and/or pay fees to support the development of new parks, open spaces, infrastructure and community facilities necessary to support a higher level of development on the Westside.

The Applicant proposes material and beneficial Community Benefits discussed in Table 6 below that are incorporated into the Development Agreement. As described above, the Applicant intends to apply for credits to impact fees for some items that are considered community benefits. The last column in Table 6 describes the interaction between the fee credit and community benefit.

TABLE 6: Proposed Community Benefits
Item Description Fee Credit Relationship
New public
park
The applicant will provide a new 9,300 square
foot park, which will be available for use by the
public free of charge in perpetuity between 8:00
a.m. and sunset. The applicant will be
responsible for maintenance of the park, and
the public’s right to access the park will be
formalized through the dedication of a public
access easement or execution of a license
agreement.

Fee credit: The cost of
constructing the Park Space
will be credited against the
Project’s required parks and
trails development impact
fees.

Community Benefit: Public
access easement (or license)
over the Park Space, as well
as the Developer's obligation
to maintain the Park Space

8.1.a
Packet Pg. 129 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) TABLE 6: Proposed Community Benefits
Item Description Fee Credit Relationship
Community
Function
Space
The applicant will pay for, construct, and
maintain an approximately 2,500 square-foot
Community Function Space as a multi-use
space appropriate for City functions or events,
and for community groups to use for meetings,
events, educational purposes, cultural
celebrations, and similar gatherings. The
Community Function Space shall be built out to
include finished flooring, drop down or open
concept ceilings, bathroom for the exclusive
use of guests of the community room, audio
and visual equipment, furniture, fixtures and
equipment, and other features appropriate for
the purpose of the space. The Community
Function Space will be available for use by the
community and City between the hours of 8am
and 10pm free of charge and community users
will have priority status to reserve the space
over building tenants when reservations are
made more than 10 days in advance of the use
of the community room.

None
Bus Stop
Improvements
Applicant will build a high-quality bus shelter,
including wind and rain screening and transit
schedule information, on O’Connor Street near
Euclid Ave. It is intended to be served by
SamTrans routes 81, 280, and 281 and
Ravenswood City School District school buses.

None
Water tank
and
infrastructure
Applicant will construct a 1.5 million gallon
water tank and pump system, in coordination
with City of East Palo Alto Public Works and
Menlo Fire District, to improve the overall water
conveyance, supply, and pressure in the
neighborhood. The tank, pump system and the
land will be transferred to the City.

Fee credit: A portion of this
new infrastructure will be
credited against the water
capacity fees and public
facilities fees
Community Benefit: The
cost incurred by the
Developer in excess of the
required water capacity fees
and public facilities fees are
considered a community
benefit
Storm
Drainage
Improvements
Applicant will build storm drainage
infrastructure improvements in the Projectadjacent street segments of Euclid Ave., O’Connor Street, Manhattan Ave, and/or West
Bayshore Ave consistent with the existing City
of East Palo Alto Storm Drain Master Plan to
reduce storm water impacts and discharge
rates, up to a maximum cost of $500,000
Fee credit: A portion of the
cost of constructing the storm
drainage improvements will
be credited against storm
drainage fees
Community Benefit: The
remaining value of the
improvement will be a
community benefit.

Dedication of
Roadway
Applicant will dedicate approximately 20,350
square feet (roughly ½ acre) of land to the City
of East Palo Alto, along the entire frontage of
O’Connor Street between Manhattan Ave and
None

8.1.a
Packet Pg. 130 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) TABLE 6: Proposed Community Benefits
Item Description Fee Credit Relationship
Euclid Ave, and a portion of the frontage of
Euclid Ave between O’Connor Street and West
Bayshore Road. This includes existing
roadway, sidewalk, and building-related open
space.

As described above, the Development Agreement is functioning as the Affordable and Inclusionary Housing Agreement for this project and includes specific requirements related to the development of the off-site affordable housing project (see Section 4.5).

The Development Agreement sets forth the following:
• Affordability levels: Sets the affordability levels for the off-site units (25% of such units available to and rented at rents affordable to 35% AMI households; 50% of such units available to and rented at rents affordable to Very Low Income Households up to 50% AMI; and 25% of such units available to and rented at rents affordable to Low Income Households (up to 60% AMI)). • Number of units: Sets forth the number of units (70-89) to be constructed on the off-site parcel and payment of the in-lieu fee to account for any units not constructed.
• Timing: The planning application for the off-site units must be submitted to the City prior to issuance of building permits for the principal Project, and building permits for the off-site units are required to be pulled at or before the City's issuance of the first Certificate of Occupancy for the principal Project, or:
o Safety Net Units: If building permits have not been pulled for the off-site affordable units at the time of first Certificate of Occupancy for the principal Project, the Applicant is required to place affordability restrictions on existing vacant units in the developer's portfolio until the off-site affordable project is constructed. Households occupying these units would be transferred to the off-site affordable project after construction is complete.

For further information on the requirements associated with the safety net units, see Attachment L.

Required Findings
The Applicant is requesting a General Plan Amendment, Development Code Amendment, Design Review, Conditional Use Permit, and Tentative Map for the construction of a new mixed-use residential development. The required findings for each of these entitlements are noted below, and expanded analysis is presented in Attachment G.

Findings for General Plan Amendments (EPAMC Sec. 18.114.060(A)) • The amendment is internally consistent with all other provisions of the General Plan. • The proposed amendment will not be detrimental to the public interest, health, safety, convenience or welfare of the City.
• The affected site is physically suitable in terms of design, location, operating characteristics, shape, size, topography, and the provision of public and emergency vehicle access, and public services and utilities and is served by highways and streets adequate in width and improvement to carry the kind and quantity of traffic the proposed

8.1.a
Packet Pg. 131 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) use would likely generate, to ensure that the proposed use(s) and/or development will not endanger, jeopardize, or otherwise constitute a hazard to the property or improvements in the vicinity in which the property is located.

Findings for Development Code and Zoning Map Amendments (EPAMC Sec. 18.114.060(B)) • The proposed amendment is consistent with the General Plan and any applicable specific plan.
• The proposed amendment will not be detrimental to the public interest, health, safety, convenience or welfare of the City.
• The proposed amendment is internally consistent with other applicable provisions of the Development Code.
• The affected site is physically suitable in terms of design, location, operating characteristics, shape, size, topography, and the provision of public and emergency vehicle access, and public services and utilities and is served by highways and streets adequate in width and improvement to carry the kind and quantity of traffic the proposed use would likely generate, to ensure that the proposed use(s) and/or development will not endanger, jeopardize, or otherwise constitute a hazard to the property or improvements in the vicinity in which the property is located.

Neighborhood Center Overlay District Findings (EPAMC Sec. 18.11.050) (Proposed Development Code Amendment)
• The project does not displace existing residents.
• The project provides for some income-restricted affordable housing. • The project preserves “right of return” for existing residents if demolition of existing residential units is proposed.
• The project maintains the City’s rent stabilization program, where applicable. • The project contributes to the provision of new parks and open spaces. • The project contributes to the provision of new streets and infrastructure. • The project improves the fiscal health of the City.
• The project enhances the area for residents.

Design Review Findings (EPAMC Sec. 18.86.050(C))
• The proposed development is consistent with the General Plan and any applicable specific plan and is in compliance with all applicable provisions of the Development Code and all other City ordinances and regulations.
• The proposed development is to be constructed on a suitable site, adequate in shape, size, topography, and other circumstances to accommodate the proposed development. • The proposed development complies with the applicable standards of review. • The proposed development is designed and arranged to provide adequate consideration to ensure the public health, safety, and general welfare, and to prevent adverse effects on neighboring property.

Conditional Use Permit Findings for the demolition of Affordable Dwelling Units (EPAMC Sec.

18.88.060(A))
• The proposed use is consistent with the General Plan and any applicable specific plan. • The proposed use is allowed within the subject zone and complies with all other applicable provisions of the Development Code and the Municipal Code. • The design, location, size, and operating characteristics of the proposed use are compatible with the allowed uses in the vicinity, as detailed in the General Plan or any

8.1.a
Packet Pg. 132 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) applicable Specific Plan.
• Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, or endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. • The subject site is physically suitable in terms of design, location, operating characteristics, shape, size, topography, and the provision of public and emergency vehicle (e.g., fire and medical) access and public services and utilities; and served by highways and streets adequate in width and improvement to carry the kind and quantity of traffic the proposed use would likely generate.

Additional Findings for the demolition of Affordable Dwelling Units (EPAMC 18.48.220):
• The proposal will not be materially detrimental to the public interest of the affected neighborhood and the City.
• The proposal is consistent with the City's General Plan policies, Development Code requirements, and all other City rules and regulations. • Whether the project is necessary to permit construction of special needs facilities such as, but not limited to: childcare centers and affordable housing developments that serve the greater good of the entire community.

Tentative Map Findings (EPAMC Sec. 18.52.060)
• The proposed map, subdivision design, and improvements are consistent with the General Plan, any applicable specific plan, and this Article. • The site is physically suitable for the type and proposed density of development; • The design of the subdivision and the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.
• The design of the subdivision or type of improvements is not likely to cause serious public health or safety problems.
• The design of the subdivision or the type of improvements will not conflict with easements acquired by the public at large for access through or use of, property within the proposed subdivision.
o This finding may also be made if the Review Authority finds that alternate easements for access or use will be provided, and that they will be substantially equivalent to ones previously acquired by the public.
o This finding shall apply only to easements of record, or to easements established by judgment of a court of competent jurisdiction, and no authority is hereby granted to the Review Authority to determine that the public at large has acquired easements of access through or use of property within the proposed subdivision. • The discharge of sewage from the proposed subdivision into the community sewer system will not result in violation of existing requirements specified by the California Regional Water Quality Control Board.
• The design of the subdivision provides, to the extent feasible, passive or natural heating and cooling opportunities.
• The proposed subdivision, its design, density, and type of development and improvements conforms to the regulations of the Development Code and the regulations of any public agency having jurisdiction by law.

Development Agreement Findings (18.108.030(D))
• The development agreement is in the best interests of the City.

8.1.a
Packet Pg. 133 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) • The development agreement is consistent with the purpose, intent, goals, policies, programs, and land use designations of the General Plan, any applicable specific plan, and the Development Code.
• The development agreement will promote the public convenience, health, interest, safety and general welfare of the City.
• The project will be compatible with the uses authorized in, and the regulations prescribed for, the zone in which the real property is located. • The project will not adversely affect the orderly development of property or the preservation of property values.
• The project will further important Citywide goals and policies that have been officially recognized by the Council.
• The project will provide the City with important, tangible benefits beyond those that may be required by the City through project conditions of approval.

Environmental Review
The City of East Palo Alto is the lead agency for all California Environmental Quality Act (CEQA) activities and is responsible for preparation of all studies/documents associated with environmental review of the Project.

The City published the Notice of Preparation for an EIR for the Project on April 22, 2020, and a Scoping Meeting was held before the Planning Commission on May 18, 2020. On July 1, 2021, the City issued a Notice of Availability of the Draft Environmental Impact Report (DEIR). Publication of the Notice of Availability began a forty-five (45) day public review period, which was extended to a 75-day review period, concluding September 15, 2021. During this period, a Planning Commission hearing to solicit comments on the DEIR was held on July 26, 2021 and the DEIR was available for review and comment to the community, local, State, federal agencies, and interested organizations.

A copy of the DEIR is available at:
https://www.cityofepa.org/sites/default/files/fileattachments/planning/project/19555/wood land_park_euclid_improvements_deir_june_2021.pdf
CEQA Guidelines Appendix G sets forth a set of questions to answer to evaluate impacts to environmental resource areas. The DEIR found that all impacts would be mitigated to a lessthan-significant level with implementation of the recommended mitigation measures, with the exception of Aesthetics and Utilities and Service Systems, which would remain significant and unavoidable impacts. Mitigation measures were still applied to these topics to reduce the impacts as much as possible, as required by CEQA.

Resource areas requiring mitigation measures to reduce impacts to less-than-significant include Air Quality, Biological Resources, Cultural Resources and Tribal Cultural Resources, Geology and Soils, Noise, Transportation, Greenhouse Gas Emissions, and Hazards and Hazardous Materials, as shown in Table 7 below. Resource areas listed as less-thansignificant or no impact do not require mitigation. Resource areas requiring mitigation are further described below.

TABLE 7: Resource Area Impact Summary
Less-than-Significant or No
Impact
Less-than-Significant
Impact with Mitigation
Significant and
Unavoidable Impact

8.1.a
Packet Pg. 134 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) TABLE 7: Resource Area Impact Summary
Less-than-Significant or No
Impact
Less-than-Significant
Impact with Mitigation
Significant and
Unavoidable Impact
Agricultural and Forestry
Resources Air Quality Aesthetics
Energy Biological Resources Utilities And Service
Systems
Hydrology and Water Quality Cultural Resources and Tribal Cultural Resources
Land Use Geology and Soils
Mineral Resources Noise
Population and Housing Transportation
Public Services Greenhouse Gas Emissions
Recreation Hazards and Hazardous
Materials
Wildfire
Significant and Unavoidable Impacts:

Aesthetics
The EIR determined there would be a significant unavoidable impact for aesthetics. As described above, the project is proposing a new General Plan land use and zoning overlay (Neighborhood Center Residential Overlay, or NCO). This change in zoning would allow a substantial increase in density compared to the existing R-HD-5 (Multi Family High Density) and R-UHD (Multiple Family Urban High Density Residential) zoning, tripling the allowable density and nearly doubling the maximum building height. While the General Plan includes policies regarding design and development and the Municipal Code includes guidance on development, including required findings for approvals for design review, this project would introduce a new zoning and General Plan designation allowing a denser development very different than what currently is permitted and existing surrounding uses. The DEIR concluded that, even with design measures to improve the appearance of the project, the change in zoning allowing a larger building, by itself, would unavoidably modify the physical appearance and character of the immediate area. For this reason, the project would cause a significant unavoidable aesthetic impact.

Utilities and Service Systems
The second significant unavoidable impact is for utilities and service systems, specifically for sewer capacity. The DEIR conservatively uses the wastewater generation rates that are used by East Palo Alto Sanitary District (240 gallons per day per residence). There is ongoing discussion if such rates, which reflect more of a suburban land use pattern, are applicable to the denser apartment project constructed with low flow water fixtures. Using this conservative generation rate used in the Sanitary District’s modeling, the DEIR concluded the addition of the project’s flows to the system has the potential to stress the sewer system’s capacity. While the project applicant will be required to pay its fair share funding towards sanitary sewer systems improvements as a mitigation measure, the overall improvement will be implemented by the Sanitary Sewer District and not as part of this project. As such, until these improvements are constructed, the project’s effects on the existing system would be considered significant and unavoidable.

Less than Significant Impacts with Mitigation:

8.1.a
Packet Pg. 135 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) Air Quality
The project would implement mitigation measures to avoid impacts to air quality relating to construction dust and emissions from construction equipment. Construction activities, particularly during site preparation and grading, would temporarily generate fugitive dust. The Bay Area Air Quality Management District (BAAQMD) CEQA Air Quality Guidelines consider these impacts to be less than significant if best management practices, such as watering exposed surfaces, covering loose materials in haul trucks, and limiting vehicle speeds on unpaved surfaces, are implemented to reduce the emissions. A condition of approval would be implemented consistent with recommendations in the BAAQMD CEQA Guidelines for providing best management practices to control construction emissions and would reduce onsite fugitive dust emissions sufficiently to result in a less than significant impact. Construction equipment and associated heavy-duty truck traffic generates diesel exhaust, a known Toxic Air Contaminant. Construction exhaust emissions pose health risks for sensitive receptors such as surrounding residents, and without implementation of mitigation measures, the project would exceed BAAQMD thresholds. A mitigation measure would be implemented requiring the applicant to use modernized equipment with engines that significantly reduce emissions of particulate matter (PM) and nitrogen oxides (NOx), which would reduce the impacts to sensitive receptors during project construction to less than significant.

Biological Resources
The project would implement a mitigation measure to avoid impacts to nesting migratory birds and reduce the potential for avian collision with the proposed office building. The mitigation measure includes conducting construction outside of nesting season or conducting nesting bird surveys, implementing buffer zones around active nests, and reporting results of surveys and required buffer zones prior to tree removal. With incorporation of these measures, the project would result in a less than significant impact to nesting birds.

Cultural Resources
Ground disturbing activities associated with project construction could disturb previously unrecorded archaeological resources or human remains due to ground disturbance associated with construction activities. Mitigation measures will be implemented to avoid or reduce impacts to due to inadvertent discovery of archaeological resources archaeological resources and/or human remains that may be present on the site, which includes work stoppage and tribal consultation if resources are discovered. These measures would reduce potential impacts to unrecorded archaeological resources at the site by identifying them prior to construction and developing alternative project designs, or treatment plans to avoid or minimize impacts to resources.

Geology and Soils
While the preliminary geotechnical report determined the project site to be geotechnically and geologically feasible for future development, the project site would still be subject to risks associated with local soils. A mitigation measure requiring a construction level geotechnical evaluation will be required and all standards and recommended engineering measures to mitigate for liquefaction, expansive soils and other local soil constraints must be incorporated into the project.

There are no major or unique paleontological resources known to exist in the city, and the likelihood of encountering unique paleontological resources is low. However, development of the project could result in the discovery and disturbance of previously unknown or undiscovered paleontological resources. To reduce this potential impact to unique

8.1.a
Packet Pg. 136 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) paleontological resources to a less-than-significant level, a mitigation measure is included in case a paleontological resource is encountered during grading or excavation that requires stopping construction activities within 50 feet of the find and avoiding the resource or implementing a data recovery plan.

Greenhouse Gas Emissions
Unmitigated emissions from the development of up to 605 dwelling units and retail uses would potentially exceed the BAAQMD GHG threshold. Implementation of a mitigation measure would be required to reduce GHG emissions below BAAQMD GHG threshold. The mitigation measure requires the project Applicant to prepare a Commute Trip Reduction (CTR)/Transportation Demand Management (TDM) plan to minimize vehicle trips and mobile emissions. TDM plan requirements include consultation with the local transit service provider on the need to provide infrastructure to connect the project with transit services and a TDM plan including, but not limited to, the following measures is required: ride-matching assistance, preferential carpool parking, flexible work schedules for carpools, half-time transportation coordinators, providing a web site or message board for coordinating rides, designating adequate passenger loading and unloading and waiting areas for ride-sharing vehicles, and including bicycle end of trip facilities.

Hazards and Hazardous Waste
During construction activities, such as demolition of the existing structures, there is a potential for asbestos from asbestos containing material areas and lead-based paint from painted surfaces to be exposed. However, the proposed project would be required to comply with all applicable regulations during construction, as required by the DTSC and California OES and to implement two mitigation measures, which require preparation and submittal of an Asbestos Operation and Management Plan and a Lead Based Paint and PCB Operation and Management Plan.

Noise
Noise from project construction and noise from project operation would be reduced to a less than significant impact with implementation of a mitigation measure requiring the following:
maintain and tune all proposed equipment in accordance with the manufacturer’s recommendations to minimize noise emission, fit all equipment with properly operating mufflers, air intake silencers, and engine shrouds, post a sign with a contact name and telephone number to respond in the event of a noise complaint, place stationary construction equipment and material delivery in loading and unloading areas as far as practicable from the residences, limit unnecessary engine idling, use smart back-up alarms or switch off back-up alarms and replace with human spotters, use low-noise emission equipment, limit use of public address systems, and minimize grade surface irregularities on construction sites.

Transportation and Circulation
The proposed driveway access to the parking garage on Manhattan Avenue may have limited sight distance for exiting vehicles onto Manhattan Avenue, resulting in a potential site design hazard from vehicles approaching from Bayshore Road. Implementation of a mitigation measure that the project applicant install traffic calming measures at the Bayshore Road/Manhattan Avenue location to reduce traffic speeds and improve the safety of driveway movements is required. Such measures could include advisory speeds signs, advanced warning signage along Manhattan Avenue and Bayshore Road, roadway bulbouts, raised dots, parking restrictions or other physical improvements.

8.1.a
Packet Pg. 137 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) Final EIR
Following the conclusion of the public comment period, the City of East Palo Alto prepared a Final EIR in accordance with Section 15132 of the CEQA Guidelines. The Final EIR was published on July 15, 2022.

A copy of the FEIR is available at:
https://www.cityofepa.org/sites/default/files/fileattachments/planning/project/19369/eucli d_feir_mmrp.pdf
Fifteen (15) public comment letters were received from individuals and agencies during the Draft EIR’s 75-day public review period, including the State Water Board, East Palo Alto Sanitation District, and Palo Alto Park Mutual Water Company. The comments centered on the following topics:
• Water storage tank use and impacts
• Sanitary District capacity
• Water supply
• Neighborhood infrastructure
• Proposed height
• Proposed density and intensity of use
• Parking demand and supply
• Entitlement and construction timing and duration
• Public Art
• Gentrification
• Traffic
• Water tank aesthetics
• Parks and open space
• Tenant relocation
• Refuse service and odor
• Geotechnical report
The Planning Commission also provided comments on the Draft EIR at the July 26, 2021 public meeting. Commissioners asked questions regarding population and housing impact thresholds, alternatives, the water tank’s height, purpose, and land ownership, sanitary system connections, traffic, and tree preservation.

All comments were responded to in the Final EIR (see Attachment C) and clarifying text revisions were made where necessary.

CEQA Findings of Fact and Statement of Overriding Considerations When there are unmitigated significant and unavoidable environmental impacts associated with a project, the California Environmental Quality Act requires the decision-making agency to balance the economic, legal, social, technological, or other benefits of a proposed project against its unavoidable environmental impacts when determining whether to approve the project. If the specific economic, legal, social, technological, or other benefits of a proposed project outweigh the unavoidable adverse environmental effects, the adverse environmental effects may be considered acceptable. The City is required to state the specific reasons to support its action based on the final environmental impact report or other information in the record in a document is called a “Statement of Overriding Considerations” which is included in Attachment A. The City finds that the mitigation measures proposed to reduce significant impacts related to aesthetics and utilities and service systems cannot guarantee reduction of

8.1.a
Packet Pg. 138 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) the impacts to a less-than-significant level. However, the City of East Palo Alto concludes that the project’s relative benefits outweigh its residual environmental effects for the following reasons:
• Consistency with Overall Vision of the General Plan and Westside Area Plan • Improved Housing Stock
• Economic Benefits to the City of East Palo Alto
• Affordable Housing and Community Benefits
MMRP
The MMRP identifies 15 mitigation measures and one standard condition related to Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Noise, and Transportation. Implementation of the MMRP will be monitored by City staff to ensure the potential impacts of the implementation of the Project is reduced in accordance with CEQA.

Traffic Analysis
With the passage of SB 743, effective July 1, 2020, amending CEQA’s evaluation of transportation impacts and the Guidelines implementing SB 743, a project’s effects on intersection function (referred to as level of service or LOS) is no longer considered an impact on the environment. However, the City of East Palo Alto has General Plan policies that address LOS as a planning or growth management matter, separate from the CEQA process.

In the event a deficient LOS condition is identified, the City has discretion whether to require a project to address the deficiency by implementing roadway or other transportation improvements in order to restore or improve the LOS.

Traffic conditions at 22 intersections in the project area were evaluated using LOS and compared to the City of East Palo Alto and the City of Menlo Park LOS standards. Of the 22 study intersections, nine currently operate with LOS deficiencies, and the project would have an adverse effect on the following six intersections during one or both peak hours under “existing plus project” conditions:
• University Avenue/Donohoe Street
• University Avenue/SB US-101 Ramps
• University Avenue/Woodland Avenue
• Woodland Avenue/University Circle
• Donohoe Street/NB US-101 On-Ramp
• Woodland Avenue/University Circle
The following recommended roadway improvements would improve the intersections to an acceptable LOS or otherwise improve pre-project conditions:
• University Avenue/Donohoe Street: Widen Donohoe Street to 4 through lanes in each direction. In addition, it is recommended that an exclusive southbound right-turn lane be constructed. (Recommended as part of the University Plaza Phase II Project) • University Avenue/Woodland Avenue: Construct a third eastbound left-turn lane and reconfigure westbound approach to consist of one left-turn, one through, and one rightturn lane. • Donohoe Street/NB US-101 On-Ramp: Signalize intersection (Recommended as part of the University Plaza Phase II Project)
• Donohoe Street/NB US-101 Off-Ramp: Widen Donohoe Street to 4 through lanes in

8.1.a
Packet Pg. 139 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) each direction (Recommended as part of the University Plaza Phase II Project) The University Circle Phase II project will construct the third eastbound left-turn lane identified in the second bullet point above. The proposed improvement to widen Donohoe Street to 4 lanes in each direction would assist in relieving congestion along Donohoe Street and nearby intersections along University Avenue and Woodland Avenue. The applicant will be required to contribute funding to planned improvements being implemented at the Donohoe Street/Euclid Avenue intersection and the US 101 Northbound on-ramp as part of the University Plaza Phase II development, as well as City-planned improvements at Donohoe Street and University Avenue and at the US 101 northbound off ramp, based on a fair share formula based on the number of trips added by the project (see estimate above).

Transportation Demand Management Plan
On June 1, 2021, City Council adopted a resolution to repeal former Chapter 10.32 of the East Palo Alto Municipal Code and enact a new Chapter 10.32 establishing a transportation demand management (TDM) program. The new TDM provisions require residential developments approved after January 1, 2022, to achieve a forty percent (40%) reduction from baseline conditions in average daily trips and to submit a TDM plan that demonstrates how the project will achieve a 40 percent reduction in average daily trips. The proposed project would be subject to the new TDM requirements, and the Applicant’s proposed TDM plan is provided for review as Attachment J, and Condition of Approval 29 requires the applicant to receive approval of the TDM Plan from the City’s TDM Coordinator prior to issuance of building permits. The City has recently entered into contract with a TDM Program Coordinator. The City’s TDM Program Coordinator will review the TDM plan for compliance with the ordinance and program guidelines.

Public Comment
As of the writing of this report, four comment letters have been received and are included as Attachment S. The letters received express support for project approval due to its contribution towards increasing regional housing supply, improving affordable housing, spurring economic growth, promoting energy-efficient and environmental design and mobility options. Any other public comments received after publication of this report will be forwarded to the City Council upon receipt.

Next Steps
Should City Council choose to proceed with the recommended actions, the Ordinances approving the Development Agreement, amending the Development Code, and amending the Zoning Map will return to Council for a second reading at a following City Council Meeting.

Public Notice
Notice of the public hearing was mailed to property owners and occupants within 600- foot radius of the project site on August 26, 2022. A legal ad was placed in the local newspaper and published on August 26, 2022. The public was provided notice of this agenda on the City’s official bulletin board outside City Hall, and the agenda and report were made available on the City’s website. The project website was updated with meeting information.

8.1.a
Packet Pg. 140 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) In addition, notices were also mailed to state, local and regional agencies, and posted at the project site. Active non-profits and religious institutions in the Westside area and other interested parties were also mailed or emailed the meeting notice and Final EIR.

The applicant also conducted further public outreach and noticing, including a mailing to the Westside neighborhood.

Attachments
A. CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program
B. Draft EIR
C. Final EIR
D. General Plan Amendment Resolution
E. Development Code Amendment Ordinance
F. Zoning Map Amendment Ordinance
G. Resolution Approving Project, Required Findings, and Conditions of Approval H. Ordinance Approving Development Agreement (with Development Agreement) I. Architectural Plans (click link here)
J. TDM Plan and Parking Analysis
K. Relocation Plan
L. Affordable Housing Alternative Compliance Milestones M. Fiscal Impact Analysis
N. Community Impact Report
O. Community Involvement Strategy
P. General Plan Consistency Analysis
Q. Planning Commission Meeting Public Comments
R. Planning Commission Resolution
S. City Council Meeting Public Comments

8.1.a
Packet Pg. 141 Attachment: September 6, 2022 Staff Report (2406 : Woodland Park Euclid Improvements) RESOLUTION NO. CC 2022-

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

CERTIFYING A FINAL ENVIRONMENTAL IMPACT REPORT (FEIR),

ADOPTING THE MITIGATION MONITORING AND REPORTING PLAN
(MMRP), ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS

AND DIRECTING THE FILING A NOTICE OF DETERMINATION FOR A MIXED-USE PROJECT AT 2001 MANHATTAN AVENUE
(WOODLAND PARK EUCLID IMPROVEMENTS).

WHEREAS, the application for General Plan Amendment (GP19-001) and Development Code and Zoning Map amendments (ZC19-002), Design Review Permit (DR 19-028), Conditional Use Permit (CUP22-003), Tentative Parcel Map (TTM19-001), and Development Agreement submitted by Woodland Park Communities/Sand Hill Property Company (“Sand Hill”) pertains to an approximately 3.92-acre project site generally located at 2001 Manhattan Avenue, East Palo Alto, CA; and WHEREAS, Sand Hill proposes construction of a mixed-use residential project containing approximately 605 residential units within three buildings ranging in height from 5 to 13 stories with approximately 605 parking spaces in a structured garage and approximately 2,500 square feet of community function space and 2,215 square feet of neighborhood-serving retail space; and
WHEREAS, on July 1, 2021, the City issued a Notice of Availability of the Draft Environmental Impact Report (DEIR) and received fifteen comment letters during the extended 75-day public comment period which ended on September 15, 2021; and WHEREAS, a Final Environmental Impact Report (FEIR) has been prepared in accordance with Section 15132 of the California Environmental Quality Act (CEQA) Guidelines and the City Council reviewed the FEIR and the comments received during the public review period; and
WHEREAS, in accord with Section 15090 of the CEQA Guidelines, the FEIR has been presented to the City Council and the document reflects the City’s, as lead agency, independent judgment and analysis; and
WHEREAS, a Statement of Overriding Considerations has been prepared in accordance with CEQA Guidelines Section 15093, and the statement of overriding considerations is supported by substantial evidence in the record; and WHEREAS, on July 25, 2022, the Planning Commission held a duly noticed public hearing on the General Plan and Development Code Amendments, Zoning Map Amendments, Design Review and Conditional Use Permits, Tentative Parcel Map, Development Agreement, and Environmental Impact Report (EIR), and other project entitlements (“Project”) and recommended the City Council approve the project by Resolution #____;

8.1.b
Packet Pg. 142 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program WHEREAS, on September 6, 2022, the City Council held a duly noticed public hearing on the Project and continued the public hearing to September 20, 2022;

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

1. Certifies that the Woodland Park Euclid Improvements Project Final Environmental Impact Report (SCH # 2020040270) on file with the City Clerk has been done in compliance with the California Environmental Quality Act (CEQA);

2. Adopts a Mitigation, Monitoring and Reporting Plan (Attachment A) pursuant to Public Resources Code 21000 and the CEQAGuidelines (California Code of Regulations, Title 14, Section 15000);

3. Adopts a Statement of Overriding Considerations (Attachment B);

4. Directs the Community and Economic Development Director to File a Notice of Determination within five working days of adoption pursuant to Section15075 of the CEQA Guidelines; and
ADOPTED on this _______ day of ________ 2022, by the following vote:

AYES:

NOES:

ABSENT: ABSTAIN:

SIGNED:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin
City Clerk
Valerie J. Armento
Interim City Attorney

8.1.b
Packet Pg. 143 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program ATTACHMENT A: MITIGATION MONITORING AND REPORTING PLAN

8.1.b
Packet Pg. 144 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-1
June 2022
4 Mitigation Monitoring and Reporting Program

4.1 Public Resources Code
When approving projects with Environmental Impact Reports (EIRs) that identify significant impacts, the California Environmental Quality Act (CEQA) requires public agencies to adopt monitoring and reporting programs or conditions of project approval to mitigate or avoid the identified significant effects (Public Resources Code Section 21081.6(a)(1)). A public agency adopting measures to mitigate or avoid the significant impacts of a proposed project is required to ensure that the measures are fully enforceable, through permit conditions, agreements, or other means (Public Resources Code Section 21081.6(b)). The program must be designed to ensure project compliance with mitigation measures during project implementation.

The Mitigation Monitoring and Reporting Program (MMRP) is organized in a table format (see Table 4-1: Mitigation Monitoring and Reporting Program for the Woodland Park Euclid Improvements Project, keyed to each significant impact and each EIR mitigation measure. Only mitigation measures adopted to address significant impacts are included in this program. Each mitigation measure is set out in full, followed by a tabular summary of monitoring requirements. The column headings in the tables are defined as follows:
▪ Mitigation Measures: This column presents the mitigation measure identified in the EIR. ▪ Monitoring/Reporting Responsibility: This column contains an assignment of responsibility for the monitoring and reporting tasks.
▪ Timing of Implementation: This column refers to when the measure is required to be implemented.
▪ City Staff/Notes: This column will be used by the lead agency to document the person who verified the implementation of the mitigation measure and the date on which this verification occurred.

4.2 Enforcement
If the project is approved, the MMRP for the development would be incorporated as a condition of such approval. Therefore, all mitigation measures for significant impacts must be carried out to fulfill the requirements of approval. A number of the mitigation measures would be implemented during the course of the development review process. These measures would be checked on plans, in reports, and in the field prior to construction. Most of the remaining mitigation measures would be implemented during the construction, or project implementation phase.

8.1.b
Packet Pg. 145 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-2
June 2022
Table 4-1: Mitigation Monitoring and Reporting Program for the Woodland Park Euclid Improvements Project Impact
Number Mitigation Measure
Monitoring/
Reporting
Responsibility
Timing of Implementation
City Staff
Notes;
Initials/Date
when Done
Aesthetics
AES-2 MM AES-2.1 Construction Screening
To minimize and soften the visual effect as
seen from visitors and nearby residents,
the project proponent shall incorporate
construction fencing or screening around
the perimeter of the site. The screening
material shall be of sufficient height to
mask ground-level activities within and be
designed with graphics, murals, historic
references, or other design features to
blend as much as possible with the
neighborhood surroundings while
communicating the future uses at the site.

Screening shall remain in place during
demolition of existing structures, site
preparation and new building construction.

Screening shall not be necessary during the
final stages of construction when
architectural coatings, detailing and
landscaping are applied. The plan for
screening concept and design shall be
submitted for approval to the City of East
Community and
Economic
Development
Department
Plan for screening to be submitted
prior to the issuance of any building
or grading permits.

Measure to remain in place until
final stages of construction.

8.1.b
Packet Pg. 146 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-3
June 2022
Impact
Number Mitigation Measure
Monitoring/
Reporting
Responsibility
Timing of Implementation
City Staff
Notes;
Initials/Date
when Done
Palo Alto prior to issuance of any building
and grading permits.

AES-2 MM AES-2.2 Water Tank Screening
During construction, the applicant shall
provide construction screening of the
water tank site to soften visual effects of
construction. In the final phase of tank
construction, the applicant shall landscape
the perimeter of the water tank site at 375
Donohoe with a combination of fencing
and vegetation to soften and screen the
appearance of the water tank and related
improvements. Plant selection shall include
native, taller species or trees to provide a
visually appealing screen as viewed from
the roadway and surrounding land uses.

Landscaping and screening shall not
conflict with water tank access or
operations. Landscaping plans shall be
submitted to the City for review and
approval with final improvement plans.

Community and
Economic
Development
Department
Applicant to maintain screening
around the perimeter of the water
tank site throughout construction
period (e.g. demolition, site
preparation, and new building
construction).

Landscaping plans shall be submitted
to the City for review and approval
with final improvement plans.

Applicant to landscape the
perimeter of the water tank site with
fencing vegetation in the final phase.

AES-3 MM AES-3.1 Glare Reduction Community and
Economic
Applicant to incorporate AR glass
products and surfaces to minimize

8.1.b
Packet Pg. 147 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-4
June 2022
Impact
Number Mitigation Measure
Monitoring/
Reporting
Responsibility
Timing of Implementation
City Staff
Notes;
Initials/Date
when Done
As part of final improvement plans, the
project shall incorporate anti-reflective
(AR) glass products and surfaces selected
specifically to minimize reflective glare.

Such materials can vary but typically
consist of matte or patterned finishes that
serve to both reduce reflective glare and
reduce bird strike.

Development
Department
glare as part of final improvement
plans.

Air Quality
AQ-2 SC AQ-2.1 BAAQMD Basic Construction
Measures
BAAQMD Basic Construction Measures.

Prior to any grading activities, the applicant
shall prepare and implement a
Construction Management Plan that
includes the BAAQMD Basic Construction
Mitigation Measures to minimize
construction-related emissions. This shall
plan shall first be reviewed and approved
by the Director of Public Works/City
Engineer. The BAAQMD Basic Construction
Mitigation Measures are:

Director of Public
Works/City
Engineer;
Construction
contractor
Prior to and during construction.

8.1.b
Packet Pg. 148 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-5
June 2022
Impact
Number Mitigation Measure
Monitoring/
Reporting
Responsibility
Timing of Implementation
City Staff
Notes;
Initials/Date
when Done
• All exposed surfaces (e.g., parking areas,
staging areas, soil piles, graded areas, and
unpaved access roads) shall be watered
two times per day.
• All haul trucks transporting soil, sand, or
other loose material off-site shall be
covered.
• All visible mud or dirt track-out onto
adjacent public roads shall be removed
using wet power vacuum street sweepers
at least once per day. The use of dry power
sweeping is prohibited.
• All vehicle speeds on unpaved roads shall
be limited to 15 mph.
• All roadways, driveways, and sidewalks to
be paved shall be completed as soon as
possible. Building pads shall be laid as soon
as possible after grading unless seeding or
soil binders are used.
• Idling times shall be minimized either by
shutting equipment off when not in use or
reducing the maximum idling time to 5

8.1.b
Packet Pg. 149 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-6
June 2022
Impact
Number Mitigation Measure
Monitoring/
Reporting
Responsibility
Timing of Implementation
City Staff
Notes;
Initials/Date
when Done
minutes (as required by the California
airborne toxics control measure Title 13,
Section 2485 of California Code of
Regulations [CCR]). Clear signage shall be
provided for construction workers at all
access points.
• All construction equipment shall be
maintained and properly tuned in
accordance with manufacturer’s
specifications. All equipment shall be
checked by a certified mechanic and
determined to be running in proper
condition prior to operation.
• Post a publicly visible sign with the
telephone number and person to contact
at the Lead Agency regarding dust
complaints. This person shall respond and
take corrective action within 48 hours. The
Air District’s phone number shall also be
visible to ensure compliance with
applicable regulations.

AQ-3 MM AQ-3.1 Off-Road Diesel-Powered
Construction Equipment
Community and
Economic
Development
Construction operations plan to be
submitted and equipment
specifications to be confirmed prior

8.1.b
Packet Pg. 150 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-7
June 2022
Impact
Number Mitigation Measure
Monitoring/
Reporting
Responsibility
Timing of Implementation
City Staff
Notes;
Initials/Date
when Done
All mobile diesel-powered off-road
equipment operating on-site for more than
two days and larger than 50 horsepower
shall, at a minimum, meet U.S.

Environmental Protection Agency (EPA)
particulate matter emissions standards for
Tier 4 engines or equivalent. Prior to the
issuance of any demolition permits, the
project applicant shall submit a
construction operations plan to the
Planner/Project Manager of the Planning
Division of the Department Community and
Economic Development, which includes
specifications of the equipment to be used
during construction and confirmation this
requirement is met. Such equipment could
include concrete/industrial saws, graders,
scrapers, rollers, cranes, forklifts, generator
sets, and air compressors.

8.1.b
Packet Pg. 151 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-8
June 2022
Impact
Number Mitigation Measure
Monitoring/
Reporting
Responsibility
Timing of Implementation
City Staff
Notes;
Initials/Date
when Done
equipment (i.e., non-diesel), added exhaust
devices, or a combination of these
measures could meet this requirement. If
any of these alternative measures are
proposed, the construction operations
plans must include specifications of the
equipment to be used during construction
prior to the issuance of any demolition
permits. If any of these alternative
measures are proposed, the plan shall be
accompanied by a letter signed by a
qualified air quality specialist, verifying the
equipment included in the plan meets the
standards set forth in this mitigation
measure.

Biological Resources
BIO-1 MM BIO-1.1 Preconstruction Bird Surveys
The applicant shall schedule all on-site tree
removal, demolition and grading to occur
outside of the nesting and breeding season
(February 1 through September 1) of any
given year to avoid nest disturbance. If this
schedule is not practical or feasible, the
applicant shall hire a qualified biologist to
Project
Applicant;
Qualified
Biologist
Applicant to schedule on-site tree
removal, demolition, and grading to
occur outside of the nesting and
breeding season (February 1 through
September 1) to avoid nest
disturbance.

8.1.b
Packet Pg. 152 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-9
June 2022
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conduct preconstruction nesting bird
surveys of the site plus a 100-foot
perimeter around the site, no more than
seven days prior to removal of trees and
grading. If nesting birds are observed, the
biologist will establish a buffer zone where
no tree removal or grading will occur until
the biologist confirms that all chicks have
fledged and are no longer reliant on the
nest. The buffer zone may vary from 50 to
250 feet, depending upon the species of
bird and exposure of the nest site.

If surveys are required, results shall
be submitted to Community and
Economic Development Department
prior to commencement of site
work/tree removal.

Cultural Resources
CR-2 MM CR-2.1 Inadvertent Discovery of
Archaeological Resources
In the event the buried, or previously
unrecognized archaeological deposits or
resources are encountered during ground
disturbing activities, work shall be
temporarily halted within a 50-foot radius
of the discovered materials and workers
should avoid altering the materials and
their context until a qualified professional
Archaeologist has evaluated the situation
Construction
Contractor;
Qualified
Archaeologist
During ground disturbing activities.

8.1.b
Packet Pg. 153 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-10 June 2022
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Reporting
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Notes;
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when Done
and provided appropriate
recommendations. Project personnel shall
not collect cultural resources. Construction
and potential impacts to the area(s) within
a radius determined by the archaeologist
shall not recommence until the assessment
is complete.

Potentially significant Native American
resources consist of but are not limited to
chert or obsidian flakes, projectile points,
mortars, and pestles; and dark friable soil
containing shell and bone dietary debris,
heat-affected rock, or human burials. The
tribal monitor(s) will contact the tribal
representative(s) and in consultation with
the City and an archeologist evaluate the
finds. Appropriate mitigation measures for
the inadvertently discovered tribal cultural
resource shall be at the direction of tribal
leadership.

8.1.b
Packet Pg. 154 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-11 June 2022
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The City and tribal representative(s) shall
consider the mitigation recommendations
and agree on implementation of the
measure(s) that are feasible and
appropriate. Such measures may include
reburial of any ancestral remains,
avoidance, preservation in place,
excavation, documentation, or other
appropriate measures.

CR-2 MM CR-2.2 Inadvertent Discovery of
Human Remains
In the event that human remains (or
remains that may be human) are
discovered at the project site, Public
Resource Code Section 5097.98 must be
followed. All grading or earthmoving
activities shall immediately stop within a
50-foot radius of the find. The project
proponent shall then inform the San Mateo
County Coroner and the City of East Palo
Alto immediately, and the Coroner shall be
permitted to examine the remains as
required by California Health and Safety
Code Section 7050.5(b).

Community and
Economic
Development
Department; San
Mateo County
Coroner
During ground disturbing activities.

8.1.b
Packet Pg. 155 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-12 June 2022
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Section 7050.5 requires that excavation be
stopped in the vicinity of discovered human
remains until the Coroner can determine
whether the remains are those of a Native
American. If human remains are
determined as those of Native American
origin, the applicant shall comply with the
state relating to the disposition of Native
American burials that fall within the
jurisdiction of the NAHC (Public Resource
Code [PRC] § 5097). The Coroner shall
contact the NAHC to determine the most
likely descendant(s) (MLD). The MLD shall
complete his or her inspection and make
recommendations or preferences for
treatment within 48 hours of being granted
access to the site. The MLD will determine
the most appropriate means of treating the
human remains associated grave artifacts,
and shall oversee the disposition of the
remains.

In the event the NAHC is unable to identify
an MLD or the MLD fails to make a
recommendation within 48 hours after
being granted access to the site, the
landowner or his/her authorized

8.1.b
Packet Pg. 156 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-13 June 2022
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representative shall rebury the Native
American human remains and associated
grave goods with appropriate dignity within
the project area in a location not subject to
further subsurface disturbance.

Geology & Soils
GEO-5 MM GEO-5.1 Final Geotechnical
Evaluation
A construction level geotechnical
evaluation shall be required for the project.

The project shall be required to adhere to
and incorporate all standards and
recommended engineering measures to
mitigate for liquefaction, expansive soils
and other local soil constraints. The final
geotechnical evaluation will be provided to
the City for review and approval prior to
the issuance of building permits.

Community and
Economic
Development
Department
Prior to the issuance of building
permits.

GEO-6 MM GEO-6.1 Inadvertent Discovery of
Paleontological Resources
In the event that fossils or fossil-bearing
deposits are discovered during
Qualified
Paleontologist
During ground disturbing activities.

8.1.b
Packet Pg. 157 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-14 June 2022
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construction activities, work shall be
temporarily halted with a 50-foot radius of
the discovered materials and workers
should avoid altering the materials and
their context until a qualified
paleontologist has evaluated the situation
and provided appropriate
recommendations. Construction and
potential impacts to the area(s) within a
radius determined by the paleontologist
shall not recommence until the assessment
is complete.

Possible mitigation under Public Resources
Code Section 21083.2 requires that
reasonable efforts be made for resources
to be preserved in place or left
undisturbed. If preservation in place is not
feasible, the applicant shall mitigate
significant effects. Excavation as mitigation
shall be limited to those parts of resources

8.1.b
Packet Pg. 158 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-15 June 2022
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that would be damaged or destroyed by a
project. Possible mitigation under CEQA
emphasizes preservation-in-place
measures, including planning construction
avoid paleontological sites, incorporating
sites into parks and other open spaces,
covering sites with stable soil, and deeding
the site into a permanent conservation
easement. Under CEQA Guidelines, when
preservation in place is not feasible, data
recovery through excavation shall be
conducted with a data recovery plan in
place.

Greenhouse Gas Emissions
GHG-1 MM GHG-1.1 Transportation Demand
Management Plan
Prior to approval of project entitlements
for future residential uses, the project
applicant shall prepare qualifying Commute
Trip Reduction (CTR)/Transportation
Demand Management (TDM) plan to
reduce mobile GHG emissions for all uses.

The TDM plan shall be approved by the City
of East Palo Alto and any physical features
Community and
Economic
Development
Department
Prior to the approval of project
entitlements.

8.1.b
Packet Pg. 159 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-16 June 2022
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resulting from the plan shall be shown in
final improvement plans. The TDM plan
shall discourage single-occupancy vehicle
trips and encourage alternative modes of
transportation such as carpooling, taking
transit, walking, and biking. The following
measures or equally effective measures
shall be incorporated into the TDM plan.
• The project applicant shall consult
with the local transit service provider
on the need to provide infrastructure
to connect the project with transit
services. Evidence of compliance with
this requirement may include
correspondence from the local transit
provider(s) regarding the potential
need for installing bus turnouts,
shelters or bus stops at the site.
• The CTR/TDM plan for the project
shall include, but not be limited to the
following potential measures: ridematching assistance, preferential carpool parking, flexible work
schedules for carpools, half-time
transportation coordinators, providing

8.1.b
Packet Pg. 160 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-17 June 2022
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a web site or message board for
coordinating rides, designating
adequate passenger loading and
unloading and waiting areas for ridesharing vehicles, and including bicycle end of trip facilities. This list may be
updated as new methods become
available. Verification of this measure
shall occur prior to building permit
issuance for the commercial uses.

Hazards & Hazardous Materials
HAZ-1 MM HAZ-1.1 Asbestos Operation and
Management Plan
Prior to demolition and removal of material
from the site, the project applicant shall
implement the recommendations of the
2014 Asbestos O&M Plan for work
involving asbestos-containing material.

These measures include asbestos training
and specific work procedures for
employees managing asbestos
contaminated materials, notification
procedures for building owners and
occupants, asbestos clean-up and
Project
Applicant; City
Building Official
Prior to demolition activities.

8.1.b
Packet Pg. 161 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-18 June 2022
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Number Mitigation Measure
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Timing of Implementation
City Staff
Notes;
Initials/Date
when Done
emergency response procedures, and
recordkeeping of identified asbestos
contaminated materials. The plan shall be
reviewed and approved by the City of East
Palo Alto prior to implementation.

HAZ-1 MM HAZ-1.2 Lead Based Paint and PCB
Operation and Management Plan
Prior to any renovations or demolition, the
project applicant shall implement the
recommendations of the LBP O&M Plan for
work involving lead based painted surface
areas to be carried out. These measures
include training and special work
procedures for employees managing leadbased paint materials, notification procedures for building owners and
occupants, emergency response
procedures, and recordkeeping of
identified lead-based paint materials. The
plan shall be reviewed and approved by the
City of East Palo Alto prior to
implementation. The project shall also
follow current San Francisco Bay Regional
Water Quality Control Board requirements
Project
Applicant; City
Building Official
Prior to any renovations or
demolition activities.

8.1.b
Packet Pg. 162 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-19 June 2022
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City Staff
Notes;
Initials/Date
when Done
for identifying and controlling PCB’s during
building demolition, if present.

Noise & Vibration
N-1 MM N-1.1 Construction Noise Reduction
Prior to Grading Permit issuance, the
applicant shall demonstrate, to the
satisfaction of the City of East Palo Alto
Director of Public Works or City Engineer
that all applicable construction plans and
specification include the following
measures:
• Construction activities shall be
restricted to daytime hours of between
7:00 a.m. and 8:00 p.m. on weekdays.
• Prior to the start of construction
activities, the construction contractor
shall:
o Maintain and tune all proposed
equipment in accordance with
the manufacturer’s
recommendations to minimize
noise emission.

Project
Applicant;
Director of Public
Works or City
Engineer
Prior to issuance of grading permit
issuance.

8.1.b
Packet Pg. 163 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-20 June 2022
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o Inspect all proposed equipment
and should fit all equipment with
properly operating mufflers, air
intake silencers, and engine
shrouds that are no less effective
than as originally equipped by
the manufacturer.
o Post a sign, clearly visible at the
site, with a contact name and
telephone number of the City of
East Palo Alto’s authorized
representative to respond in the
event of a noise complaint.
o Place stationary construction
equipment and material delivery
in loading and unloading areas
as far as practicable from the
residences.
o Limit unnecessary engine idling
to the extent feasible.
o Use smart back-up alarms, which
automatically adjust the alarm
level based on the background
noise level, or switch off back-up
alarms and replace with human
spotters.

8.1.b
Packet Pg. 164 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-21 June 2022
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o Use low-noise emission
equipment.
o Limit use of public address
systems.
o Minimize grade surface
irregularities on construction
sites.

Transportation & Circulation
TRA-2 MM TRA-2.1 Traffic Calming Measures
Prior to operational use of the parking
garage, the project applicant shall install
traffic calming measures at the Bayshore
Road/Manhattan Avenue location to
reduce traffic speeds and improve the
safety of driveway movements. Such
measures could include advisory speeds
signs, advanced warning signage along
Manhattan Avenue and Bayshore Road,
roadway bulbouts, raised dots, parking
restrictions or other physical
improvements. Final traffic calming
measures will be determined in
consultation with City of East Palo Alto
City Public Works
Department
Final measures determined prior to
final improvement plans.

Implementation/installation prior to
operation of the parking garage.

8.1.b
Packet Pg. 165 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-22 June 2022
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Number Mitigation Measure
Monitoring/
Reporting
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City Staff
Notes;
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when Done
Public Works staff during review of
improvement plans.

Utilities & Service Systems
UTIL-1 Refer to MM AES-2.1, SC AQ-2.1, SC AQ3.1, MM AQ-3.1, MM GHG-1.1, MM HAZ1.1, MM HAZ-1.2, MM N-1.1Refer to Impact AES-2, AQ-2, AQ3, GHG-1, HAZ-1,
and N-1.

Refer to Impact AES-2, AQ-2, AQ-3,
GHG-1, HAZ-1, and N-1.

UTIL-3 MM UTIL-3.1 Fair Share Funding of Project
Improvements
The project applicant shall either fund the
fair share of construction of physical sewer
line improvements (pipe upgrades)
immediately downstream of the project,
provide fair share funding toward system
wide sanitary sewer system improvements,
or a reasonable combination of both. The
project’s financial and implementation
responsibility for sewer capacity
improvements shall be determined in
consultation with the City of East Palo Alto
Public Works Department. Fair share
funding of common improvements to the
city-wide system would also address the
City Public Works
Department
Prior to issuance of building permits

8.1.b
Packet Pg. 166 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, City of East Palo Alto Woodland Park Euclid Improvements Project Final EIR Mitigation Monitoring and Reporting Program | Page 4-23 June 2022
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project’s contribution to significant
cumulative effects. Funding or construction
of common improvements shall occur prior
to the issuance of building permits or as
determined by the City. The project’s fair
share of responsibility shall be
proportionate to the impact. The project
shall not be responsible for mitigating all
existing deficiencies.

UTIL-5 Refer to MM AES-2.1, SC AQ-2.1, SC AQ3.1, MM AQ-3.1, MM GHG-1.1, MM HAZ1.1, MM HAZ-1.2, MM N-1.1Refer to Impact AES-2, AQ-2, AQ3, GHG-1, HAZ-1,
and N-1.

Refer to Impact AES-2, AQ-2, AQ-3,
GHG-1, HAZ-1, and N-1.

8.1.b
Packet Pg. 167 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, ATTACHMENT B: STATEMENT OF OVERRIDING CONSIDERATIONS

8.1.b
Packet Pg. 168 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program 1 City of East Palo Alto
Draft Findings Required Under the California Environmental Quality Act (Public Resources Code Section 21000 et seq.)
For the Woodland Park Euclid Improvements Project

1. Introduction
A public agency may not approve or carry out a project for which an EIR has been certified that identifies one or more significant environmental effects, unless the public agency makes one or more written findings for each of those significant effects. Each finding much be accompanied by a brief explanation of the rationale for each finding (CEQA Guidelines Section 15091).

The City of East Palo Alto (City) prepared a Final Environmental Impact Report (EIR) for the proposed Woodland Park Euclid Improvements Project (Project) in May 2022.

The project is a proposal for a General Plan and zoning amendment that would create a Neighborhood Center Residential Overlay (NCO). The NCO designation would establish new development standards for the property that would be applied to the proposed project. The NCO would allow for neighborhoodserving commercial and community uses on the ground floors, additional housing units, and increased building heights.

With the NCO overlay, the project would demolish and remove 161 existing apartment units and replace all existing structures with three buildings (Buildings A, B and C) supporting 605 residential units ranging in size from studios to 2 bedrooms (two of the units would be 3-4 bedrooms). The project would be divided into two main sections on either side of Euclid Avenue. The south side of Euclid contains the majority of the development (Buildings B and C), including residential structures with a lobby/common area, central parking garage, community space/neighborhood serving retail and open space/park area.

Although the building heights vary considerably in design, the tallest structure (Building C) would be up to 13 levels.

The project is proposed to be constructed in a single action, but with primary structures constructed in sequence to allow planned construction staging and flow of materials and equipment. The general sequence of activity would involve demolition, excavation, utility relocation, site grading and foundations, building erection, and final finishes. Construction activities are anticipated to last approximately 18 to 24 months. The Final EIR identified several significant or potentially significant environmental effects associated with project implementation.

The Findings and Statement of Overriding Considerations set forth below (Findings) are presented for consideration by the Planning Commission and adoption by the City Council as the City’s independent findings under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.) and the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.).

The Findings provide the written explanation, evidence, reasoning and conclusions of the City regarding the project’s environmental impacts, mitigation measures, alternatives, and the overriding

8.1.b
Packet Pg. 169 Attachment: CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program 2 considerations, which in the City’s judgement, justify approval of Woodland Park Euclid Improvements Project despite residual environmental effects.

2. Record of Proceedings and Custodian of Record
For purposes of CEQA and the findings set forth herein, the record of proceedings for the City of East Palo Alto’s findings and determinations consist of the following documents and testimony as compiled for the project:
• The Notice of Preparation (NOP), comments received on the NOP, comments received at the public scoping meeting, and all other public notices issued by the City. • Draft EIR, associated appendices to the Draft EIR, and technical materials cited in the • Draft EIR.
• Final EIR, including comment letters, responses to comments, errata and technical materials cited in the Final EIR.
• Staff reports associated with Planning Commission and City Council hearings on the project. • Those categories of materials identified in Public Resources Code Section 21167.6, which establishes the contents for the record of proceedings.

The City is the custodian of the administrative record. The documents and materials that constitute the administrative record are available for review at the City of East Palo Alto Community and Economic Development Department, 1960 Tate Street, East Palo Alto, CA 94303.

3. Severability
If any term, provision, or portion of these Findings or the application of these Findings to a particular situation is held by a court to be invalid, void, or unenforceable, the remaining provisions of these Findings, or their application to other actions related to the project, shall continue in full force and effect unless amended or modified by the City.

4. Findings for Significant Impacts that Can Be Avoided or Reduced to a Less Than Significant Level with Implementation of Mitigation Measures
Impact AES-3: The project would introduce new sources of light and glare to the project site and project area.