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October 4, 2022 City Council Staff Report

East Palo Alto City Council
November 1, 2022

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October 4, 2022 City Council Staff Report
Meeting
November 1, 2022
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East Palo Alto City Council
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Text extracted from the city's file for reading and search. Open the original on eastpaloalto.iqm2.com. That file is the official record.

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: October 4, 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;

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 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, and September 20, 2022 City Council meetings. On September 6, 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, at which time staff responses to questions raised on September 6 were presented. The recordings of the meetings, staff reports, and associated attachments can be accessed here:
• September 6, 2022 Council Meeting:
<http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1818> • September 20, 2022 Council Meeting:
<http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1819> The staff reports for the September 6, 2022 and September 20, 2022 meetings are included as Attachments A and B; the analysis below supplements those reports and provides further information about the Relocation Plan implementation and possible additional Conditions of Approval discussed by Council at the September 20th meeting.

Analysis
Relocation Plan Implementation
Council and members of the public discussed the public outreach surrounding the Relocation Plan. In addition to the outreach that has been conducted to date, the Relocation Plan requires additional outreach throughout implementation, including additional resident meetings to promote education and understanding of the relocation program, multiple community meetings to be held both on weekdays and weekends, and a staffed information booth on multiple weekend days. Additional meetings will be held related to each phase, which also will include weekday and weekend meetings and an informational booth. The Final Relocation Commitments will be provided to all households in English and Spanish following Council’s decision on the Plan. The applicant has contracted with Autotemp to develop and implement the relocation plan.

Additional Conditions of Approval
City Council asked staff to work with the applicant to respond to additional community benefits suggested at the September 20, 2022 meeting. The original community benefits proposed included:
• New public park
• Community Function Space
• Bus Stop Improvements
• Water tank and infrastructure Improvements
• Storm Drainage Improvements
• Dedication of Roadway
The original community benefits proposal has an estimated value of approximately $7.3 million after deducting the proposed fee credits. Additional community benefits suggested by Councilmember Romero (with edits by staff to provide specificity), estimated costs, and the applicant’s response or modification are outlined below for Council’s consideration. The applicant’s response letter is also included as Attachment W.

Additional Community
Benefit
Est. Cost Applicant Response/
Modification
Modified
Est.

Cost
1 The applicant shall offer a
$4,000 anti-displacement
incentive in the form of a rent
rebate or home goods
voucher to households who
move into right of return units.
$279,000
($3,000
increase * 93
potential
households)
The applicant has
proposed a $2,000
anti-displacement
incentive in the form of
a rent rebate or home
goods voucher to
households that move
into right of return
units.
$93,000
($1,000
increase * 93
potential
households)
2 The applicant shall contribute
$750,000 to a rent relief fund.
$750,000 The applicant has
proposed that the
future $480,000 -
$800,000 per year
payment of gross
receipts taxes be
placed in a special rent
relief fund, consistent
with the Gross
Receipts Tax
ordinance.
$0
3 The applicant shall contribute
$500,000 to fund the
Woodland watermain and
Intertie project between the
City of East Palo Alto and the
City of Palo Alto. If the funds
are requested prior to the
issuance of the building
permit, the funds shall be
provided as an interest-free
loan for 20 years, to be
forgiven upon building permit
issuance.
$450,000 The applicant has
responded that they
are unable to provide
the capital for the Palo
Alto water intertie in
addition to the cost of
the new water tank.

Staff Comment: While
the applicant has
offered the option of
eliminating the water
tank to provide the
intertie contribution,
$0
Additional Community
Benefit
Est. Cost Applicant Response/
Modification
Modified
Est.

Cost
Staff Comment: Public works
staff has noted that $450,000
is sufficient to cover the cost
of the Emergency Intertie
Project (The original request
was for $500,000).
this substitution will not
provide adequate fire
water pressure to the
project site. The water
intertie project would
be in addition to the
water tank and is not a
substitute for the water
tank.
4 Prior to Building Permit
Issuance, the applicant shall
dedicate the land adjacent to
the San Francisquito Creek
(APN 063-471-020) along
Woodland Avenue between
Euclid Avenue and University
Avenue to the City to serve as
a public park and contribute
$15,000 for design services.

Staff Comment: Staff has
added a $15,000 contribution
in addition to the land
dedication to assist the City
with designing the park.
$115,000 –
$365,000
($100,000-
$350,000
(land value)
+ $15,000
(design))
The applicant has
agreed to contribute
the land on Woodland
Ave (between
University Ave and
Euclid Ave) to support
the SFCJPA creek
project’s neighborhood
improvements at
Building Permit
Issuance.

Staff Comment: Staff
also requests that the
applicant fund and
implement project
design, outreach and
improvements in
coordination with San
Francisquito Creek
Joint Powers Authority.
$100,000 -
$350,000
(land value)
5 The applicant shall maintain
the park at the project site in
perpetuity.
-- The applicant agrees
and this is included in
the Development
Agreement.
--
6 The applicant shall make a
financial contribution to
support the creation of a
future residential parking
permit program or fund a
future TMA.

Staff Comment: Staff
estimates that hiring a
consultant to conduct
outreach and develop a
residential parking permit
program will be approximately
$200,000.
$200,000 The applicant has
agreed to pay $25,000
to contribute to the
establishment of a
residential parking
permit program, for
which they would seek
a fee credit against the
Transportation Impact
Fee.
$0
7 The applicant shall obtain
certification of participation
with Commute.org.
-- The TDM plan
proposes “certified
participation in
--
Additional Community
Benefit
Est. Cost Applicant Response/
Modification
Modified
Est.

Cost
Commute.org, or
equivalent program
such as a TMA.”
8 The applicant shall construct
a sidewalk from the project
site along West Bayshore
Road to the Water Tank site
at 375 Donahoe Street.

Staff Comment: To
implement this request, the
applicant would be required to
conduct a survey and submit
sidewalk improvement plans
with the project’s offsite
improvement plans. The
sidewalk network along West
Bayshore Road is
fragmented, but an
approximately 1,000-foot
segment does not have
sidewalks. The applicant
would also be required to
provide lighting where the City
identifies deficiencies.
$250,000 The applicant has
proposed to provide
some funding for
improved sidewalks
near the project area
as determined by the
Public Works
department, if credited
against the
Transportation Impact
Fee.
$0
9 The applicant shall install
public electric vehicle (EV)
chargers along Euclid
Avenue. The applicant shall
install a minimum of four
level-2 chargers and minimum
of one level 3-charger.
$100,000 The applicant has
agreed either to
provide publicly
accessible EV
chargers within the
project’s off-street
parking garage or to
coordinate with Public
Works to provide onstreet EV charging at a
maximum cost of
$50,000 so long as it is
considered a specific
streetscape or frontage
improvement above
City standards that
could be credited
against the
Transportation Impact
Fee.
$0
10 The applicant shall install
(drinking) water fountains
within the project site
$10,000 The applicant has
agreed to install water
fountains within the
property.
$10,000
11 The applicant shall pay an
additional 5% over the total
$0-
$246,050*
The applicant has
indicated that they
$0
Additional Community
Benefit
Est. Cost Applicant Response/
Modification
Modified
Est.

Cost
in-lieu fee required by the
Development Agreement
(Ordinance No_____).
cannot pay an
increased in-lieu fee.

Total: $2,154,000 -
$2,765,050
$203,000 -
$453,000
* In lieu fee additional sum is based on the range of units that may be constructed at the offsite Affordable Housing Project (70-89 units, minimum of 70 units must be constructed and for any units less than 89 constructed, in-lieu fee must be paid).

As described above, in several instances, the applicant is proposing to construct an improvement or contribute funding (such as the sidewalk improvements, Residential Parking Permit Program funding, or on-street EV chargers) if they receive a credit against the Transportation Impact Fee. These proposals are estimated to have no value, as the project is obligated to pay Impact Fees, and Impact Fees do not qualify as community benefits. Should Council accept the fee credit proposals, funding that would usually be directed into the Capital Improvement Program would be diverted towards the specific improvements associated with the Woodland Park Euclid Improvements project.

Attachments
A. September 20, 2022 Staff Report
B. September 6, 2022 Staff Report
C. CEQA Resolution, Findings of Fact and Statement of Overriding Considerations, Mitigation, Monitoring, and Reporting Program
D. Draft EIR
E. Final EIR
F. General Plan Amendment Resolution
G. Development Code Amendment Ordinance
H. Zoning Map Amendment Ordinance
I. Resolution Approving Project, Required Findings, and Conditions of Approval J. Ordinance Approving Development Agreement (with Development Agreement) K. Architectural Plans (click link here)
L. TDM Plan and Parking Analysis
M. Relocation Plan
N. Affordable Housing Alternative Compliance Milestones O. Fiscal Impact Analysis
P. Community Impact Report
Q. Community Involvement Strategy
R. General Plan Consistency Analysis
S. Planning Commission Resolution
T. Planning Commission Meeting Public Comments
U. City Council Meeting Public Comments
V. Aggregated Tenant Move Information
W. Applicant Response Letter to 9/20 Council Discussion

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