Agenda packet — East Palo Alto City Council, December 6, 2022

East Palo Alto City Council December 6, 2022 Agenda Page 1 of 5

EAST PALO ALTO CITY COUNCIL

REGULAR MEETING AGENDA
December 6, 2022, 6:30 PM
EPA Government Center
2415 University Ave, First Floor
East Palo Alto, CA 94303
NOTICE
This meeting will be held virtually and in-person at the Council Chambers located on 2415 University Ave, First Floor East Palo Alto, CA 94303. The virtual portion of this City Council meeting will be conducted in accordance with City of East Palo Alto Resolution adopted pursuant to Assembly Bill 361.

The public may participate in the City Council Meeting via Zoom Meeting or by attending in-person in the Council Chambers at 2415 University Ave, First Floor East Palo Alto, CA 94303. Community members may provide comments by emailing [email protected], submitting a speaker card at the meeting or using the “RAISE HAND” feature when the Mayor or City Clerk call for public comment. Emailed comments should include the specific agenda item on which you are commenting.

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International numbers available: https://zoom.us/u/aMWYF4KT East Palo Alto City Council December 6, 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. Resolution to Approve Side Letters Amending the Memorandum of Understanding Between the City of East Palo Alto and the Police Officers’ Association Recommendation: Adopt a Resolution approving Side Letters that amend the Memorandum of Understanding between the City of East Palo Alto and the Police Officers’ Association.

2. Annual Development Impact Fee Report (AB 1600 Report) Recommendation: Adopt a Resolution accepting the Annual Development Impact Fee Report (AB 1600 Report) for Fiscal Year 2021-22.

3. AB 361 Authority for Virtual Meetings
Recommendation: Adopt a resolution making the AB 361 findings necessary to continue virtual public meetings for the City Council and City Advisory Bodies for the month of December 2022.

4. Addition of Funds to Existing BMR Program Administration Agreement Recommendation: Adopt a Resolution:

1. Authorizing the City Manager to amend the Agreement with EPACANDO for operation of the Below Market Rate (“BMR”) Program to increase the not-to-exceed amount by $41,000 to $216,000 to fund administration services through May 9, 2023; and

2. Appropriating $41,000 from the Housing In-Lieu Fund for BMR Program Administration.

5. Consideration of a Donation from H & H Evergreen Foundation for the Police Department Traffic Safety Awareness Program, Annual Toy Distribution Program, and Department Needs
Recommendation: Adopt a Resolution authorizing the City Manager to:

1. Accept a donation of funds in the amount of One Hundred Fifty Thousand Dollars ($150,000) from the H & H Evergreen Foundation, and execute a Donation Agreement to support the Police Department’s Traffic Safety Awareness Program ($30,000.00), Annual Toy Distribution Program ($20,000.00), and general department needs ($100,000) in accordance with the City’s Donation Acceptance Policy; and

2. Express the City Council’s appreciation for the donation to the H & H Evergreen Foundation.

6. Certificates of Appreciation for the First Annual Mayor and Vice Mayor Citywide Clean Up 2022
Recommendation: Accept the certificates of appreciation.

7. Updates to the City’s Contracting and Procurement Process Recommendation: Receive and file this report on updates to the City’s Contracting and Procurement Process and adopt a resolution approving the East Palo Alto Purchase Policy & Delegation of Authority.

East Palo Alto City Council December 6, 2022 Agenda Page 3 of 5

8. City Attorney Appointment
Recommendation: Adopt a resolution authorizing the Mayor to execute an employment agreement with John D. Lê for the position of City Attorney.

7. Proclamation honoring Congresswoman Jackie Speier for her decades of public service and for her dedication in helping the community of East Palo Alto

8. Proclamation congratulating the Association of Indo Americans (AIA) for their educational and cultural events in the greater Bay Area to which East Palo Alto is regularly invited

9. Proclamation congratulating Ortensia Lopez on her retirement as executive director of El Concilio of San Mateo County

10. Proclamation congratulating Gloria Flores-Garcia on her retirement as associate executive director of El Concilio of San Mateo County

11. Proclamation congratulating the East Palo Alto United Soccer Community for their youth development work and success in organized soccer in the last two decades

4. CLOSED SESSION
Closed Session pursuant to Government Code Section 54957

PUBLIC EMPLOYMENT
Title: City Manager
A. PUBLIC COMMENT ON CLOSED SESSION ITEMS
B. ADJOURNMENT INTO CLOSED SESSION
C. RECONVENE INTO OPEN SESSION
D. REPORT OUT OF CLOSED SESSION

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

7. SPECIAL PRESENTATIONS
East Palo Alto City Council December 6, 2022 Agenda Page 4 of 5

8. PUBLIC HEARINGS

1. Ordinance Adopting 2022 Building Standards Code
Recommendation:

1. Hold public hearing to adopt and amend East Palo Alto Municipal Code Chapters

15.08, 15.10, 15.11, 15.12, 15.15, 15.16, 15.20, 15.25, 15.30, 15.58 to adopt by reference the 2022 California Building Standards Code, including the following 2022 California Codes and specified appendices: Administrative Code; Building Code volumes 1 and 11; Residential Code; Electrical Code; Mechanical Code; Plumbing Code; Energy Code; Historical Building Code; Existing Building Code; Green Building Standards Code; and Fire Code, including ratification of the local amendments set forth in Menlo Park Fire Protection District Ordinance No. 49-2022; and amending section 15.32.010 pertaining to dangerous buildings.

2. Direct staff to return in early 2023 with options for local amendments to the Reach Codes (Green Building Code Chapter 15.11 and Energy Code Chapter 15.25 of the East Palo Alto Municipal Code).

9. POLICY AND ACTION

1. Discussion of Possible Zoning Amendments and Other Measures to Incentivize the Construction of ADUs
Recommendation: Provide feedback on possible measures to incentivize the construction of Accessory Dwelling Units (ADUs), and direct staff to return in early 2023 with recommendations on: 1) an updated ADU Ordinance; 2) fee waivers or reductions and other financial incentives; 3) development review streamlining measures; and 4) other approaches to facilitate the construction and legalization of ADUs.

3. City Council’s Proposed Schedule for 2023
Recommendation: By motion:

1. Accept the staff report on the City Council’s proposed meeting schedule for 2023;

2. Deliberate on the City Council’s proposed schedule for 2023;

3. Adopt the 2023 City Council meeting schedule; and

4. Adopt the 2023-24 Budget Calendar.

10. COUNCIL REPORTS

11. ADJOURNMENT
East Palo Alto City Council December 6, 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 fr om d isclo su re pursuant to the Public Records Act, that are distributed to the majority of the City Council will be available for public inspection at th e Ci ty Clerk’s Office, 2415 University Avenue, East Palo Alto, CA at the same time that the public records are distributed or made available to th e City Council. Such documents may also be available on the East Palo Alto website www.cityofepa.org subject to staff’s ability to p ost the documents prior to the meeting. Information may be obtained by calling (650) 853-3100.

The City Council meeting packet may be reviewed by the public in the Library or the City Clerk's Office. Any writings or documents pert aining t o an open session item provided to a majority of the City Council less than 72 hours prior to the meeting, shall be made available for public inspection at the front counter at the City Clerk's Office, 2ND Floor, City Hall, 2415 University Avenue, East Palo Alto, California 94303 during normal bus iness hours .

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

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

DECLARATION OF POSTING
This Notice is posted in accordance with Government Code §54954.2(a) or §54956. Members of the public can view electro nic 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: December 2, 2022
ATTEST:

James Colin
City Clerk
Future Meetings:

Meeting Date Time
Study Session
(Council Reorganization)
December 13, 2022 6:00 p.m.

Special Meeting *December 15, 2022 6:30 p.m.
*This Council Meeting will take place on Thursday, December 15th, 2022

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Patrick Heisinger, Interim City Manager
SUBJECT: Resolution to Approve Side Letters Amending the Memorandum of Understanding Between the City of East Palo Alto and the Police Officers’ Association
Recommendation
Adopt a Resolution approving Side Letters that amend the Memorandum of Understanding between the City of East Palo Alto and the Police Officers’ Association.

Alignment with City Council Strategic Plan
Priority No. 1: Enhance Public Safety and Emergency Preparedness Background
On July 19, 2022, the City Council approved terms of a Tentative Agreement (TA) and Memorandum of Understanding (MOU) with the Police Officers’ Association (POA).

In the MOU, the City agreed to establish a recruitment/retention bonus program for new police officers consistent with the structures offered by other agencies.

During the negotiation process leading up to City and POA agreement on the MOU, staff removed language regarding employees of the POA “working out of classification.” The purpose of this staff report is to introduce two side letters which, if adopted, would amend the MOU between the City and POA regarding the two above-described items.

Analysis
Exhibit A to the Resolution is the side letter that outlines the hiring/retention bonus for new officers. The language documented in the side letter is consistent with the City Council’s

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direction on July 19, 2022, when the program was established.

Exhibit B to the Resolution is the side letter that clarifies language for members of the POA when working out-of-class. Through the negotiation process, these edits were never discussed with or authorized by City Council. Essentially, the side letter reverts to the previous language which aligns with the City’s practice.

Fiscal Impact
There is no Fiscal Impact associated with approving the two side letters attached to the staff report. The hiring/retention bonus program, as well as any out-of-class pay, already is included in the current fiscal year budget.

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 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. Resolution - Side Letter
B. Exhibit A to Resolution - Side Letter Regarding Hiring Incentive Program C. Exhibit B to Resolution - Side Letter Regarding Out of Class Pay

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO APPROVING TWO SIDE LETTER AGREEMENTS

BETWEEN THE CITY OF EAST PALO ALTO AND THE EAST PALO ALTO POLICE OFFICERS’ ASSOCIATION
WHEREAS, the Memorandum of Understanding (MOU) is the collective bargaining agreement between the City of East Palo Alto (City) and the East Palo Alto Police Officers’ Association (POA); and
WHEREAS, the City and the POA ratified an MOU effective July 19, 2022; and WHEREAS, on July 19, 2022, the City Council also established a Recruitment/Retention Bonus Program to recruit and retain police officers, but this program was not mentioned in the MOU; and
WHEREAS, during the negotiation process leading up to the City and POA agreement on the MOU, staff removed language regarding employees of the POA “working out of classification” and
WHEREAS, the City and POA have met and conferred in good faith.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY authorizes the execution of the Side Letters attached hereto as Exhibit A and Exhibit B, respectively and makes them part of the MOU effective July 19, 2022.

PASSED AND ADOPTED this 6th day of December 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 - Side Letter (2482 : POA Side Letters) City of East Palo Alto
and
East Palo Alto Police Officers Association
Sideletter Agreement: Recruitment and Retention Bonuses . 1

1. This Sideletter confirms the understanding between the City of East Palo Alto (“City”) and the East Palo Alto Police Officers Association (“POA”) regarding hiring incentives for new police officer candidates.

2. This Sideletter is effective retroactive to the date of City Council adoption of the Memorandum of Understanding between the City and POA (“MOU”) in 2022.

3. Recruitment Bonus (New Hires Only). The parties agree that the City, within its sole discretion, may provide newly-hired employees, upon appointment to the classification of Police Officer, with the following recruitment and retention bonuses, totaling thirtythousand dollars ($30,000). “Newly-hired employees” means individuals appointed to the classification of Police Officer after adoption of the MOU. Newly-hired employees will not qualify for the lump sum payment in Article 9 of the MOU. a) A ten thousand dollar ($10,000) one-time lump sum payment (recruitment bonus first payment), payable the first full pay period after the employee successfully completes all elements of the Department-prescribed Field Training Program. The Parties intend and understand that this lump sum payment is non-pensionable and will not be reported to CalPERS. The parties also agree and understand that, since this payment is discretionary, it will not be considered part of the regular rate of pay. b) A ten thousand dollar ($10,000) one-time lump sum payment (recruitment bonus second payment), payable the first full pay period after the employee successfully completes their probationary period, including any extension thereof, pursuant to Article 17 of the parties’ MOU. The Parties intend and understand that this lump sum payment is nonpensionable and will not be reported to CalPERS. The parties also agree and understand that, since this payment is discretionary, it will not be considered part of the regular rate of pay. c) A ten thousand dollar ($10,000) one-time lump sum payment (recruitment bonus final payment), payable the first full pay period after the employee has completed thirty-six (36) months in paid status (and excluding any time the officer spends on administrative leave) the classification of Police Officer for the City of East Palo Alto, so long as the employee’s most recent performance evaluation was satisfactory or better. The Parties intend and understand that this lump sum payment is non-pensionable and will not be reported to CalPERS. The parties also agree and understand that, since this payment is discretionary, it will not be considered part of the regular rate of pay.

4. To qualify for the bonuses identified in Paragraph 3(a), (b), or (c), the employee must be employed on the date of the payment and must not have had any break in service from their initial hire date until the payment of the bonus.

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Attachment: Exhibit A to Resolution - Side Letter Regarding Hiring Incentive Program (2482 : POA Side Letters) 11/10/2022
11/14/22

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Attachment: Exhibit A to Resolution - Side Letter Regarding Hiring Incentive Program (2482 : POA Side Letters) City of East Palo Alto
and
East Palo Alto Police Officers Association
Sideletter Agreement: Working Out of Class
. 1

1. This Sideletter confirms the understanding between the City of East Palo Alto (“City”) and the East Palo Alto Police Officers Association (“POA”) regarding employees Working out of Classification.

2. The Parties agree to modify Section 9.4 of the 2022-24 Memorandum of Understanding between the City of East Palo Alto and the East Palo Alto Police Officers Association as follows, effective upon execution by the Parties:

9.4 Working Out of Classification
A. An employee who is officially designated by their department head and approved by the City Manager to perform all, or substantially all, of the duties of a higher paid classification, shall be paid at the step of the higher pay range or at the first step which is not less than five percent (5%) more than his/her current base rate after a full shift (excluding overtime assignments), served in the higher paid classification. Once an employee has worked in the acting assignment for a full shift (excluding overtime assignments), he or she shall be entitled to acting pay for the entire length of the assignment, retroactive to the first day of the assignment, including applicable overtime.

However, overtime shall not be paid for employees Working Out of Class in FLSA exempt assignments.

Example 1: Employee 1 is a Police Officer assigned to work out of class as a Sergeant for a full shift on Employee 1’s regular day off. Employee 1 will be paid at the step of the Sergeant pay range which is not less than five percent (5%) more than his/her current base rate, including overtime for hours worked in an overtime capacity.

Example 2. Employee 2 is a Sergeant assigned to work out of class as a Commander for a full shift. Employee 2 will be paid at the step of the Commander pay range which is not less than five percent (5%) more than his/her current base rate, but will not earn overtime when acting as a Commander.

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Attachment: Exhibit B to Resolution - Side Letter Regarding Out of Class Pay (2482 : POA Side Letters) 11/10/2022
11/14/22

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Attachment: Exhibit B to Resolution - Side Letter Regarding Out of Class Pay (2482 : POA Side Letters)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 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: Annual Development Impact Fee Report (AB 1600 Report) Recommendation
Adopt a Resolution accepting the Annual Development Impact Fee Report (AB 1600 Report) for Fiscal Year 2021-22.

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. 5: Improve Communication and Enhance Community Engagement Background
State law authorizes the City of East Palo Alto to collect development impact fees from new development. The City administers a limited number of development impact fee programs that fund the capital infrastructure project costs attributable development impacts. These development impact fees are typically paid at the time of building permit issuance.

California Government Code Section 66006(b) (“AB 1600”) defines the specific reporting requirements for local agencies that impose AB 1600 impact fees on new development.

Annually, for each separate fund established for the collection and expenditure of impact fees, the City is required to make certain required information available to the public within 180 days of the end of each fiscal year. The required reporting is commonly referred as the AB 1600 Report. The City’s AB 1600 Report for the fiscal year ended June 30, 2022 (Attachment 2) provides the information required by Section 66006(b). Broadly, this report provides insight into how specific restricted development impact funds are collected and used.

Analysis

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Previously, the City primarily collected fees pursuant to redevelopment agency agreements or statutory development agreements or collected certain in-lieu fees considered zoning-related use restrictions; such fees and collections are not subject to AB 1600 reporting requirements.

Since 2014, the City has adopted Affordable Housing Residential fees, Affordable Housing Commercial Linkage fees, Water Capacity fees, and fees related to storm drainage, transportation, parks, and public facilities. It is notable the City imposed a two-year water connection moratorium effectively halting development from July 2016 to August 2018, accounting for the low volume of fees collected and required to be reported in accordance with AB 1600.

The attached AB 1600 Report provides detailed and comprehensive analysis of the status of each of the fees required to be reported during the fiscal year ended June 30, 2022.

It is also noted that AB1600 requires the City to make specified findings in the event any funds are not expended within five years of collection and every five years after that. The City currently does not hold funds required to be reported under AB 1600 that have been collected and unexpended beyond the five-year period; therefore, no such findings are required or reportable in the current period.

The AB 1600 Report also is required to be available to the public a minimum of 15 days prior to Council review and acceptance of the report. The City posted the AB 1600 Report on November 18, 2022 on the City’s website, as required.

Fiscal Impact
There is no fiscal impact from accepting the report.

The AB1600 Report has been available to the public on the City’s website as of November 18, 2022.

Attachments
A. Resolution FY 2021-22
B. FY2021-22 AB 1600 Report

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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

ACCEPTING THE ANNUAL DVELOPMENT IMPACT FEE REPORT
FOR FISCAL YEAR 2021-22
WHEREAS, the City of East Palo Alto (“City”) levies development impact fees to finance the design, construction and acquisition for public infrastructure improvements, including facilities and equipment necessary to accommodate future growth and development within the City pursuant to Government Code section 66000 et. seq.; and
WHEREAS, said fees are collected and deposited into a special and separate fund for each type of development fee; and
WHEREAS, the City is required to make certain findings within 180 days following the last day of the fiscal year, each year, with respect to the unexpended fund balance of development impact fee funds pursuant to California Government Code Section 66001; and WHEREAS, the documents reflecting the balance in each development impact fee fund, the earnings collected from development impact fees, accrued interest in said fund, and the amount of expenditure from said fund have been made available to the public through the “AB 1600 Report.” WHEREAS, the AB 1600 Report was made available to the public for review on November 18, 2022, fifteen (15) days prior to the date that the City Council considered the AB 1600 Report.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY accepts the Annual Development Impact Fee Report for Fiscal Year 2021-22.

PASSED AND ADOPTED this 6th day of December 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

3.2.a
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Attachment: Resolution FY 2021-22 (2481 : Annual Development Impact Fee Report (AB 1600 Report)) Fiscal Year Ended June 30, 2022
Development
Impact Fee Report
City of East Palo Alto, CA

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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) This Page is Intentionally Blank

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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) Development
Impact
Fee Report
Table of Contents
TRANSMITTAL LETTER ................................................................................................................. 1 LEGAL REQUIREMENTS FOR DEVELOPMENT IMPACT FEE REPORTING ....................................................... 2 DESCRIPTION OF DEVELOPMENT IMPACT FEES................................................................................... 4 FY 2021-22 FEE SCHEDULE ......................................................................................................... 6 FUND BALANCES ....................................................................................................................... 8 COLLECTION AND USE ................................................................................................................. 9 PARKS AND TRAILS FEES........................................................................................................... 9 PUBLIC FACILITIES FEES...........................................................................................................10 TRANSPORTATION INFRASTRUCTURE FEES....................................................................................11 STORM DRAINAGE INSIDE RBD FEES ..........................................................................................12 STORM DRAINAGE OUTSIDE RBD FEES .......................................................................................13 WATER CAPACITY FEE – BUY IN COMPONENT...............................................................................14 WATER CAPACITY FEE – SUPPLY COMPONENT ..............................................................................15 AFFORDABLE HOUSING IMPACT FEES..........................................................................................16

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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 1 Transmittal Letter
November 18, 2022
Honorable Members of the City Council
Citizens of East Palo Alto, California
State law requires any local agency that imposes development impact fees to prepare an annual report providing specific information about those fees. As such, in accordance with the provisions of the California Government Code Section 66006 (b) and 66001 (d), as amended by Assembly Bill (AB) 518 and Senate Bill (SB) 1693, we submit the Development Impact Fee (DIF) Report for the City of East Palo Alto, California for the fiscal year (FY) ended June 30, 2022.

DIFs are charged by local governmental agencies in connection with the approval of development projects. The purpose of these fees is to defray all or a portion of the cost of public facilities related to the development project. The legal requirements for enactment of a DIF program are set forth in Government Code Sections §66000 - 66025 (the "Mitigation Fee Act"). The Mitigation Fee Act is commonly referred as “AB 1600”.

Previously, the City primarily collected fees pursuant to redevelopment agency agreements or statutory development agreements or collected certain in-lieu fees considered zoning-related use restrictions; such fees and collections are not subject to AB 1600 reporting requirements. Since 2014, the City has adopted Affordable Housing Commercial Linkage fees, Water Capacity fees, and fees related to storm drainage, transportation, parks, and public facilities. It is notable the City imposed a two-year water connection moratorium effectively halting development from July 2016 to August 2018.

State law requires the City prepare and make available to the public the DIF Report within 180 days after the last day of each fiscal year. The City Council must consider the acceptance of the annual report at a regularly scheduled public meeting. The information must be made available to the public no fewer than fifteen days prior to the meeting. This report was filed with the City Clerk’s office and available for public review on November 18, 2022.

Respectfully submitted,
Tomohito Oku
Finance Director

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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 2 Legal Requirements for Development
Impact Fee Reporting
California Government Code Section 66006(b)
California Government Code Section 66006 (b) defines the specific reporting requirements for local agencies that impose AB 1600 impact fees on new development. Annually, for each separate fund established for the collection and expenditure of impact fees, the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the information shown below for the most recent fiscal year. The applicable page numbers for the location where each item can be found in the report are provided for reference.
• A brief description of the type of fee in the account or fund. (Page 4) • The amount of the fee. (Page 6)
• The beginning and ending balance of the account or fund. (Page 8) • The amount collected and interest earned. (Page 8)
• An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement. (Page 9)
• An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines adequate funds have been collected to complete financing on an incomplete public improvement.
o Not applicable during FY 2021-22
• A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.
o Not applicable during FY 2021-22
• The amount of refunds made due to adequate funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded. o Not applicable during FY 2021-22

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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 3 California Government Code Section 66001(d)
For all funds established for the collection and expenditure of DIFs, California Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make the following findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted:
• Identify the purpose to which the fee is to be put.
• Demonstrate a reasonable relationship between the fee and purpose for which it is charged. • Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements.
• Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.

As of June 30, 2022, the City has no DIF funds held past the fifth year of the first deposit, therefore no further reporting required.

Capital Improvement Program (CIP)
The State of California Government Code Section 66002 states that local agencies that have developed a fee program may adopt a CIP indicating the approximate location, size, and timing of projects, plus an estimate for the cost of all facilities or improvements to be financed by fees. A formal CIP is recommended, at a minimum, as a five-year plan. The City produces a five-year CIP which helps to maintain and support the City’s General Plan as well as identify infrastructure needed to accommodate the planned development.

Establishment of Reasonable Relationship - Nexus Requirement Since FY 2014-15, the City has adopted the following DIF:

Affordable Housing Commercial Linkage (Update 2020)
Park and Trails, Transportation Infrastructure, Public Facilities, Storm Drainage (2019) Water Capacity (2019)
All fees were adopted following a Nexus Study demonstrating that the fees conform to AB 1600 requirements. Specifically, that there is a reasonable relationship between the infrastructure burdens of development growth and the amount of fee. For information regarding impact fees and related studies please refer to the City’s website at: https://www.cityofepa.org/publicworks/page/city-widedevelopment-impact-fee-program.

Adjustments to the fees shall be made annually in accordance with the Engineering News Record Construction Cost Index. The Fee Nexus studies set forth the relationships between contemplated future

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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 4 development, facilities needed to serve future development and the estimated costs of those improvements based on the current General Plan for build-out. Comprehensive updates to the program are completed on an as-needed basis to ensure the program continues to reflect the appropriate fees in relation to updated costs.

Description of Development Impact Fees
• Affordable Housing Fee – Commercial Development
To enhance the public welfare by imposing a nonresidential development project Housing Impact Fee whereby developers of nonresidential development projects will mitigate the impacts of their projects on the need for affordable housing by contributing to the supply of housing for households with very low, low, and moderate incomes. Further, to implement the Housing Element by creating a mechanism to provide benefits to the community from new development in the form of affordable housing, thereby helping to meet the needs of all socioeconomic elements of the community as provided in the Housing Element. • Parks and Trails Fee
To provide adequate quality open space – through parks and trails – for the broader public health and quality of life of its citizens and workforce. In addition to providing opportunities for physical activity and interaction with the natural environment, additionally, this fee is to be used to conserve the natural open space resources in the city. The City aims to preserve and protect natural resources such as the Baylands, the shoreline, San Francisquito Creek, and significant tree stands through parks and trails projects.
• Public Facilities Fee
To provide a variety of public facilities, including public safety institutions such as police departments, educational amenities, and quality of life services such as libraries and community centers, and governance buildings such as City Hall.
• Transportation Infrastructure Fee
To provide public roads and multi-modal streetscape facilities. East Palo Alto aims to provide adequate roads for its citizens and workforce for general transportation and safety. In addition, constructing sidewalks with street trees, street lighting, benches, and street furniture improves safety, sidewalk space, pedestrian aesthetics, and active transportation.

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 5 • Storm Drainage Fee
To provide critical infrastructure to prevent flooding of streets during rain events. East Palo Alto aims to improve citywide storm drainage and provide adequate storm drainage for the City and for new development in the Ravenswood Business District (RBD), as stated in the policy directives of the RSP (Goal UTIL-3 and subsequent policies). Due to the specific storm drainage costs associated with the RBD, a specific fee is applied depending upon whether properties are located within the RBD or outside the RBD.
• Water Capacity Fee
To recover the costs of water system infrastructure and water supply to ensure that future development does not place a burden on existing customers. To provide new or increased water system infrastructure capacity needs due to new or intensified development. There are two primary components of this fee, the cost of system buy in and the cost of additional water supply assurance from the San Francisco Public Utilities Commission specifically for purpose of serving new development. The two components of the fee are accounted for and reported separately. The buy-in portion of the fee represents the cost of existing and future infrastructure related directly to new development. The supply portion of the fee represents the cost of water right assurances secured exclusively for serving new development.

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 6 FY 2021-22 Fee Schedule TABLE 1. AFFORDABLE HOUSING
FEE
TABLE 2.OTHER FEES
TABLE 3.STORM DRAINAGE FEE
Non-Residential
1 Commercial
$11.23

1. Fee Per Square Foot
Fee Category
Detached
Accessory
Dwelling Unit
Single-Family/
Townhouse
Multi-family
Housing
Office /
Research &
Development
Industrial Retail
Parks and Trails $1,731 $4,330 $2,983 $1.21 $0.48 $0.80 Public Facilitates $3,037 $7,594 $5,231 $2.10 $0.85 $1.40 Transportation Infrastructure $988 $2,471 $1,859 $7.68 $5.00 $7.68

1. Fee Per Dwelling Unit

2. Fee Per Square Foot
Residential1 Non-Residential2
Fee Category
Detached
Accessory
Dwelling Unit
Single-Family /
Townhouse
Multi-family
Housing
Office /
Research &
Development
Industrial Retail
Storm Drainage (within RBD) $2,028 $5,070
Storm Drainage (outside RBD) $1,174 $2,934

1. Fee Per Dwelling Unit

2. Fee Per Impervious Acre
$73,324
$126,747
Single-Family1 Multi-Family and Non-Residential2

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 7 TABLE 4.WATER CAPACITY FEE
Single-Family /
Townhouse
Multi-family
Housing
3/4 Inch
Meter
1 inch
Meter

1.5 Inch
Meter
2 Inch
Meter Larger2
$8,535 $5,253 $12,472 $20,787 $41,576 $66,521 $32.82

1. Fee Per Dwelling Unit

2. Fee Per Anticipated Gallon Per Day
Residential Non-Residential 1

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 8 Fund Balances
Description Parks
and Trails
Public
Facilities
Transportation
Storm
Drainage
Inside RBD
Revenue
Fees $ 8,779 $ 15,396 $ 5,103 $ 2,933
Interest 331 653 1,702 30
Total Revenue $ 9,110 $ 16,048 $ 6,806 $ 2,963
Expenditures $ - $ - $ - $ -
Revenue Over (Under)
Expenditures $ 9,110 $ 16,048 $ 6,806 $ 2,963
Fund Balance
Beginning of Year 32,502 64,309 195,836 575
Fund Balance
End of Year $ 41,612 $ 80,357 $ 202,642 $ 3,537
Description
Storm
Drainage
Outside RBD
Water - Buy In Water - Supply
Revenue
Fees $ 9,200 $ 21,007 $ 4,408
Interest 2,454 498 -
Total Revenue $ 11,655 $ 21,505 $ 4,408
Expenditures $ - $ - $ -
Revenue Over (Under)
Expenditures $ 11,655 $ 21,505
$ 4,408
Fund Balance
Beginning of Year 282,337 388,003
(4,973,493)
Fund Balance
End of Year $ 293,991 $ 409,508 $ (4,969,085)

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 9 Collection and Use
Parks and Trails Fees
Statement of Revenues, Expenditures and Changes in Fund Balance Last Five Fiscal Years
Five-Year Revenue Test Using First In First Out Method
Description FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Revenue
Fees $ - $ - $ 11,266 $ 20,924 $ 8,779
Interest - - 124 189 331
Total Revenue $ - $ - $ 11,389 $ 21,113 $ 9,110
Expenditures $ - $ - $ - $ - $ -
Revenue Over (Under)
Expenditures $ - $ - $ 11,389 $ 21,113 $ 9,110
Fund Balance Beginning of Year - - - 11,389 32,502
Fund Balance End of Year $ - $ - $ 11,389 $ 32,502 $ 41,612 Revenue Available
After Expenses: FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Current Fiscal Year $ - $ - $ 11,389 $ 21,113 $ 9,110
Prior Fiscal Year (2-yr Old Funds) - - - 11,389 21,113
Prior Fiscal Year (3-yr Old Funds) - - - - 11,389
Prior Fiscal Year (4-yr Old Funds) - - - - -
Prior Fiscal Year (5-yr Old Funds) - - - - -
In Excess of Five Prior Fiscal Years - - - - -
Total Revenue Available $ - $ - $ 11,389 $ 32,502 $ 41,612

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 10 Public Facilities Fees
Statement of Revenues, Expenditures and Changes in Fund Balance Last Five Fiscal Years
Five-Year Revenue Test Using First In First Out Method
Description FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Revenue
Fees $ - $ - $ 19,757 $ 43,943 $ 15,396
Interest - - 217 393 653
Total Revenue $ - $ - $ 19,973 $ 44,336 $ 16,048
Expenditures $ - $ - $ - $ - $ -
Revenue Over (Under)
Expenditures $ - $ - $ 19,973 $ 44,336 $ 16,048
Fund Balance Beginning of Year - - - 19,973 64,309
Fund Balance End of Year $ - $ - $ 19,973 $ 64,309 $ 80,357 Revenue Available
After Expenses: FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Current Fiscal Year $ - $ - $ 19,973 $ 44,336 $ 16,048
Prior Fiscal Year (2-yr Old Funds) - - - 19,973 44,336
Prior Fiscal Year (3-yr Old Funds) - - - - 19,973
Prior Fiscal Year (4-yr Old Funds) - - - - -
Prior Fiscal Year (5-yr Old Funds) - - - - -
In Excess of Five Prior Fiscal Years - - - - -
Total Revenue Available $ - $ - $ 19,973 $ 64,309 $ 80,357

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 11 Transportation Infrastructure Fees
Statement of Revenues, Expenditures and Changes in Fund Balance Last Five Fiscal Years
Five-Year Revenue Test Using First In First Out Method
Description FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Revenue
Fees $ - $ - $ 6,427 $ 188,061 $ 5,103
Interest - - 71 1,278 1,702
Total Revenue $ - $ - $ 6,498 $ 189,339 $ 6,806
Expenditures $ - $ - $ - $ - $ -
Revenue Over (Under)
Expenditures $ - $ - $ 6,498 $ 189,339 $ 6,806
Fund Balance Beginning of Year - - - 6,498 195,836
Fund Balance End of Year $ - $ - $ 6,498 $ 195,836 $ 202,642 Revenue Available
After Expenses: FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Current Fiscal Year $ - $ - $ 6,498 $ 189,339 $ 6,806
Prior Fiscal Year (2-yr Old Funds) - - - 6,498 189,339
Prior Fiscal Year (3-yr Old Funds) - - - - 6,498
Prior Fiscal Year (4-yr Old Funds) - - - - -
Prior Fiscal Year (5-yr Old Funds) - - - - -
In Excess of Five Prior Fiscal Years - - - - -
Total Revenue Available $ - $ - $ 6,498 $ 195,836 $ 202,642

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 12 Storm Drainage Inside RBD Fees
Statement of Revenues, Expenditures and Changes in Fund Balance Last Five Fiscal Years
Five-Year Revenue Test Using First In First Out Method
Description FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Revenue
Fees $ - $ - $ 379 $ 185 $ 2,933
Interest - - 4 6 30
Total Revenue $ - $ - $ 384 $ 191 $ 2,963
Expenditures $ - $ - $ - $ - $ -
Revenue Over (Under)
Expenditures $ - $ - $ 384 $ 191 $ 2,963
Fund Balance Beginning of Year - - - 384 575
Fund Balance End of Year $ - $ - $ 384 $ 575 $ 3,537
Revenue Available
After Expenses: FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Current Fiscal Year $ - $ - $ 384 $ 191 $ 2,963
Prior Fiscal Year (2-yr Old Funds) - - - 384 191
Prior Fiscal Year (3-yr Old Funds) - - - - 384
Prior Fiscal Year (4-yr Old Funds) - - - - -
Prior Fiscal Year (5-yr Old Funds) - - - - -
In Excess of Five Prior Fiscal Years - - - - -
Total Revenue Available $ - $ - $ 384 $ 575 $ 3,537

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 13 Storm Drainage Outside RBD Fees
Statement of Revenues, Expenditures and Changes in Fund Balance Last Five Fiscal Years
Five-Year Revenue Test Using First In First Out Method
Description FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Revenue
Fees $ - $ - $ 20,509 $ 259,678 $ 9,200
Interest - - 195 1,954 2,454
Total Revenue $ - $ - $ 20,704 $ 261,632 $ 11,655
Expenditures $ - $ - $ - $ - $ -
Revenue Over (Under)
Expenditures $ - $ - $ 20,704 $ 261,632 $ 11,655
Fund Balance Beginning of Year - - - 20,704 282,337
Fund Balance End of Year $ - $ - $ 20,704 $ 282,337 $ 293,991 Revenue Available
After Expenses: FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Current Fiscal Year $ - $ - $ 20,704 $ 261,632 $ 11,655 Prior Fiscal Year (2-yr Old Funds) - - - 20,704 261,632 Prior Fiscal Year (3-yr Old Funds) - - - - 20,704
Prior Fiscal Year (4-yr Old Funds) - - - - -
Prior Fiscal Year (5-yr Old Funds) - - - - -
In Excess of Five Prior Fiscal Years - - - - -
Total Revenue Available $ - $ - $ 20,704 $ 282,337 $ 293,991

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 14 Water Capacity Fee – Buy In Component
Statement of Revenues, Expenditures and Changes in Fund Balance Last Five Fiscal Years
Five-Year Revenue Test Using First In First Out Method

1. $103,230 capital expenditures for the Gloria Way Well Supply project, includes correction of prior amount reported of $36,450. Total project cost was approximately $4.0M.

Description FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Revenue
Fees $ - $ - $ 6,734 $ 390,680 $ 21,007
Interest 1,199 - - 444 498
Total Revenue $ 1,199 $ - $ 6,734 $ 391,124 $ 21,505
Expenditures1$ 103,230 $ - $ - $ - $ -
Revenue Over (Under)
Expenditures $ (102,031) $ - $ 6,734 $ 391,124 $ 21,505 Fund Balance Beginning of Year 92,176 (9,855) (9,855) (3,121) 388,003 Fund Balance End of Year $ (9,855) $ (9,855) $ (3,121) $ 388,003 $ 409,508 Revenue Available
After Expenses: FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Current Fiscal Year $ - $ - $ - $ 388,003 $ 21,505
Prior Fiscal Year (2-yr Old Funds) - - - - 388,003
Prior Fiscal Year (3-yr Old Funds) - - - - -
Prior Fiscal Year (4-yr Old Funds) - - - - -
Prior Fiscal Year (5-yr Old Funds) - - - - -
In Excess of Five Prior Fiscal Years - - - - -
Total Revenue Available $ - $ - $ - $ 388,003 $ 409,509

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 15 Water Capacity Fee – Supply Component
Statement of Revenues, Expenditures and Changes in Fund Balance Last Five Fiscal Years
Five-Year Revenue Test Using First In First Out Method

1. $5,056,925 in Capitalizable Expenses related to the SFPUC water supply purchase from Mountain View and Palo Alto.

Description FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Revenue
Fees $ - $ - $ 1,413 $ 82,019 $ 4,408
Interest - - - - -
Total Revenue $ - $ - $ 1,413 $ 82,019 $ 4,408
Expenditures1$ 5,056,925 $ - $ - $ - $ -
Revenue Over (Under)
Expenditures $ (5,056,925) $ - $ 1,413 $ 82,019 $ 4,408 Fund Balance Beginning of Year - (5,056,925) (5,056,925) (5,055,512) (4,973,493) Fund Balance End of Year $ (5,056,925) $ (5,056,925) $ (5,055,512) $ (4,973,493) $ (4,969,085) Revenue Available
After Expenses: FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Current Fiscal Year $ - $ - $ - $ - $ -
Prior Fiscal Year (2-yr Old Funds) - - - - -
Prior Fiscal Year (3-yr Old Funds) - - - - -
Prior Fiscal Year (4-yr Old Funds) - - - - -
Prior Fiscal Year (5-yr Old Funds) - - - - -
In Excess of Five Prior Fiscal Years - - - - -
Total Revenue Available $ - $ - $ - $ - $ -

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report)) 16 Affordable Housing Impact Fees
Statement of Revenues, Expenditures and Changes in Fund Balance No Affordable Housing fees subject to AB 1600 reporting requirements have been collected or expenses incurred through the period ended June 30, 2022.

3.2.b
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Attachment: FY2021-22 AB 1600 Report (2481 : Annual Development Impact Fee Report (AB 1600 Report))

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Valerie J. Armento, Interim City Attorney
BY: Valerie J. Armento, Interim City Attorney
SUBJECT: AB 361 Authority for Virtual Meetings
Recommendation
Adopt a resolution making the AB 361 findings necessary to continue virtual public meetings for the City Council and City Advisory Bodies for the month of December 2022.

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
The California Brown Act has long-established requirements for local agencies to use teleconferencing to conduct meetings. It provides that if the local agency elects to use teleconferencing to conduct a public meeting, then it must identify each teleconference location in the public notice and agenda, and post agendas at all teleconference locations. All teleconference locations must be publicly accessible and there must be an opportunity for public comment at each teleconference location. Additionally, a quorum of the members of the legislative body must participate from locations physically within the jurisdictional boundaries of the agency.

In March 2020, Governor Newsom issued Executive Order N-29-20 authorizing exemptions to these Brown Act teleconferencing requirements. These requirements were suspended during the COVID-19 pandemic to promote social distancing and to facilitate remote work and meetings. Executive Order N-08-21 extended the previous order until September 30, 2021.

On September 16, 2021, the Governor signed AB 361 into law to allow the continued use of virtual public meetings during a declared state of emergency when certain conditions are met.

AB 361 took effect immediately as an urgency statute and is still in effect.

3.3 Packet Pg. 35
Analysis
AB 361 exempts local agencies from complying with the following teleconferencing requirements of the Brown Act:
· Ensuring that each teleconference location is physically accessible to the public; · Maintaining quorum with members physically within the jurisdiction; and · Providing an opportunity for public comment at each teleconference location.

The AB 361 exemptions only apply during a declared state of emergency - as defined under the California Emergency Services Act - and one of the following circumstances must apply:

1. State or local officials have imposed or recommended measures to promote social distancing.

2. The legislative body is meeting to determine whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

3. The legislative body has determined that, as a result of the emergency, meeting in person presents imminent risks to the health or safety of attendees.

Under AB 361, when a local agency elects to hold a virtual meeting because the applicable criteria are met, an alternate set of requirements apply:
· No Action During Disruptions - Where there is a disruption in the public broadcast of the call-in or internet-based meeting service, the local agency must cease and take no further action on agenda items until public access is restored. · Public Comment Rights - A local agency is prohibited from requiring public comments to be submitted in advance of the meeting and cannot close the comment period or opportunity to register online until the timed public comment period has elapsed.

Lastly, at least every 30 days during the proclaimed state of emergency, the local agency acting under the teleconference exemptions must make findings about whether the circumstances explained above still apply. Therefore, to continue holding virtual meetings, the City Council must find that it reconsidered the circumstances of the state of emergency and that one of the following circumstances exist: “(I) the emergency continues to directly impact the ability of members to safely meet in person,” or “(ii) state or local officials continue to impose or recommend measures to propose social distancing.” Today’s action would allow the City Council and City advisory bodies to continue meeting virtually during the month of December 2022.

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

3.3 Packet Pg. 36
Attachments
A. Resolution

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

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
ADOPTING THE AB 361 FINDINGS NECESSARY TO CONTINUE VIRTUAL

PUBLIC MEETINGS FOR THE CITY COUNCIL AND CITY ADVISORY BODIES DURING THE COVID-19 STATE OF EMERGENCY
WHEREAS, on January 31, 2020, the United States Department of Public Health and Human Services Secretary declared a public health emergency for the novel disease named “coronavirus disease 2019” or “COVID-19" by the World Health Organization and the Centers for Disease Control and Prevention ("CDC”) reiterates that COVID-19 is a serious public health threat based on current information; and
WHEREAS, on March 3, 2020, the San Mateo County Health Officer declared a local health emergency throughout San Mateo County and the County Manager, serving as the County Director of Emergency Services, proclaimed a local emergency throughout San Mateo County related to the novel coronavirus and on March 10, 2020, the San Mateo County Board of Supervisors ratified and extended the declaration and proclamation and this state of emergency remains in effect; and WHEREAS, on March 4, 2020, the Governor of California declared a State of Emergency due to the outbreak and spread of COVID-19, and the State of Emergency is still in effect; and WHEREAS, on March 17, 2020, the East Palo Alto City Council (“City Council”) proclaimed a local emergency due to COVID-19 and the local emergency is still in effect; and WHEREAS, in March 2020, the Governor’s Executive Order N-29-20 suspended Brown Act requirements related to teleconferencing during the COVID-19 pandemic provided that notice, accessibility, and other requirements were met, and the public was allowed to observe and address the legislative body at the meeting, and subsequently adopted Executive Order N-08-21 extending the previous order until September 30, 2021 and on September 16, 2021, the Governor signed into law AB 361 to allow the continued use of virtual public meetings during a declared state of emergency without conforming to the Brown Act teleconferencing rules during a declared state of emergency if certain findings were made; and
WHEREAS, since March 2020, the City Council and the City’s boards, commissions, and committees (“City Advisory Bodies”) have conducted their meetings virtually, as authorized by the Executive Order and since October 2021, the City Council has adopted resolutions, on a monthly basis, making the required AB 361 findings to continue virtual public meetings for the City Council and City advisory bodies; and
WHEREAS, throughout the world over 6.5 million people have succumbed to the coronavirus, which has morphed into several variants of concern, including Delta and Omicron; and

3.3.a
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Attachment: Resolution (2488 : AB 361 Authority for Virtual Meetings) Resolution No. XX-2022 2 of 2
WHEREAS, as of mid-November 2022, San Mateo County continues to have new reported cases weekly; reported cases do not include all at-home positive tests, and there is a sharp rise in influenza as well as respiratory syncytial virus, so concerns remain regarding the return to regular inperson operations; and WHEREAS, given the heightened risks of new omicron variants of COVID-19 in the community, holding indoor meetings with all members of the City Council, staff, and the public in attendance would pose an unnecessary and immediate health and safety risk to the attendees, even though the City has begun hybrid meetings.

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

1. Adopts the recitals set forth herein as findings of fact;

2. Incorporates by this reference prior City Council resolutions making the AB 361 findings necessary to continue virtual public meetings for the City Council and City Advisory Bodies during the COVID-19 State of Emergency;

3. Determines that, after having reconsidered the circumstances of the state of emergency, finds that the emergency continues to directly impact the ability of members to safely meet in person; and

4. Suspends the Brown Act teleconferencing rules in accordance with AB 361, and based on the findings and determinations herein, thereby authorizing the use of virtual meetings of the City Council and City Advisory Bodies, during the month of December 2022.

PASSED AND ADOPTED this 6th day of December 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
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Attachment: Resolution (2488 : AB 361 Authority for Virtual Meetings)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Karen Camacho, Housing Project Manager
SUBJECT: Addition of Funds to Existing BMR Program Administration Agreement Recommendation
Adopt a Resolution:

2. Appropriating $41,000 from the Housing In-Lieu Fund for BMR Program Administration.

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
On February 5, 2019, by Resolution No. 5080, the City Council awarded the team of East Palo Alto Community Alliance and Neighborhood Development Organization (“EPACANDO”) and the Bay Area Affordable Homeownership Alliance (“BAAHA”) a 3-year contract (“Agreement”) totaling $125,000 to administer the City’s portfolio of Below Market Rate (“BMR”) units. The contract commenced in May 2019 and allows for two optional one-year extensions at the discretion of the City Manager.

On July 20, 2021, via Resolution No. 107-2021 and the First Amendment to the agreement between the City and EPACANDO (“First Amendment”), an additional amount of $50,000, for a total not-to-exceed amount of $175,000, was allocated from the Affordable Housing Fund (F207) to cover costs related to Palo Mobile Estates loan administration.

On April 5, 2022, staff provided an update on the City’s BMR Program Administration, including the current number of BMR units in the City portfolio, BMR resales conducted, and the monitoring of compliance. EPACANDO found that the City currently has 53 homes in the

3.4 Packet Pg. 40
ownership BMR program. In previous years, the City had 74 BMR homes with a City-recorded restriction, before 14 planned contract expirations and 7 unplanned losses. EPACANDO also found that of the resulting 53 BMR homes, 11 had instances of probable violation. See the April 5, 2022 staff report (Attachment C) for an overview of these cases.

The three-year BMR Program Administration contract was due to expire on April 9, 2022.

However, on May 12, 2022, via Resolution No. 11-2022 and the Second Amendment to the agreement between the City and EPACANDO ("Second Amendment”), the City Manager approved the extension of the BMR Administration contract for an additional year until May 9, 2023. Resolution No. 11-2022, approved by City Council on February 1, 2022, clarified that the City Manager has the authority to approve the extension of the term of the three-year professional services agreement with EPACANDO to administer the City’s Below Market-Rate Program.

On November 29, 2022, EPACANDO submitted an update on the 11 BMR homes it was monitoring for compliance, with recommendations for City action (see Attachment B).

EPACANDO has been in contact with the homeowners in each of the 11 BMR homes to put them on notice of potential enforcement actions. Staff will work with EPACANDO on further enforcement actions in January 2023, and provide City Council with an update upon expiration of the agreement in April 2023.

Staff is now seeking an increase in the contract amount by $41,000 to cover the costs of the additional BMR Administration services that will be conducted until May 9, 2023. This increase will be reflected in the mid-year budget review.

Analysis
BMR Portfolio
The City has a portfolio of Below Market Rent homeownership units resulting from Redevelopment Agency programs and the inclusionary housing policy that requires market rate developers to increase affordable units. These homeownership units typically have a resale restriction agreement between the City (as the successor to the former Redevelopment Agency) and the homeowner. The resale restriction agreement regulates the price at which the homeowner may resell the property and gives the City an option to purchase the home if the homeowner wishes to sell.

Following the dissolution of Redevelopment Agencies in 2011 and subsequent staffing cuts, the City had no consistent monitoring of its BMR units. Regular transactions such as refinances, loan subordinations, and re-sales required significant time and involvement of the City’s Community and Economic Development Department, Office of the City Attorney and outside counsel.

The City sought to build back capacity after several years of limited oversight and administration of its affordable housing portfolio and in 2018, the City Council directed staff to issue a Request for Proposals (“RFP”) to identify a consultant to assist with creating a more efficient and cost-effective program.

EPACANDO and BAAHA (“Contractor”) were selected to administer the City’s BMR units starting on May 10, 2019. Through an extensive review process of program file archives,

3.4 Packet Pg. 41
EPACANDO found that the City currently has 53 units in its BMR program. The Contractor monitors the existing portfolio, facilitates all enforcement activities, provides refinancing support, processes new sales and resales, provides property inspection and evaluation, manages BMR sales, and executes post purchase activities.

Increase in Funds
Staff are recommending that City Council authorize an amendment to the Agreement with EPACANDO and BAAHA that increases the total not-to-exceed amount by $41,000 for a total of $216,000, taken from the Housing In-Lieu Fund. An additional amount of $41,000 reflects the estimated total cost of BMR administration for one year covering the period from May 10, 2022 to May 9, 2023. While the City Council had clarified via Resolution No. 11-2022 that the City Manager could extend the contract for two additional one-year periods, an additional budget appropriation was not included in the Council resolution. The additional amount added to the original not-to-exceed amount is shown below:

Original Not-to-Exceed $125,000
+
PME Loan Administration $50,000
+
$41,000 x 1 year BMR Admin $41,000
___________________________________
New Not-to-Exceed = $216,000
Three categories of costs are included in Schedule B of the current Agreement: startup costs, annual fixed costs, and annual variable costs based on tasks. Start-up costs were one-time costs that should no longer be needed, and annual costs vary greatly and depend on the number of BMR resales and associated services. While sufficient funds have been available to cover the cost of services to date, additional funds are necessary to cover the extended oneyear term of the agreement. Staff recommends a budget increase equal to the estimated expenses to May 9, 2023. Table 1 provides an overview of BMR administration costs.

Table 1. BMR Administration Costs
Item Contractor Fee
Contract Set-Up $10,000 (no longer applicable)
Annual Compliance Fee Per File $180
Inquiries Included in hourly fee
Thorough Review of Each BMR File Included in hourly fee Fee per Resale (Program-driven, with waitlist) $1,500
Fee per Resale (Buyer-driven, no waitlist) $3,000
Marketing per Project on Website Included in hourly fee Per Lottery Fee Included in hourly fee
Per Refinance Fee $500
Payoffs $500
Enforcement Activities (Estimate per Case) $550
Cost Per Workshop $300

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Per Hour Fees $58 - $127
Reimbursable Expenses Upon City authorization
Future of the BMR Administration
The BMR Administration Program has been well-administered to date. During the initial three years of the contract (2019-2022), there were three resales, four refinances, one title change, and well over fifty consultations. During the one-year extension, EPACANDO has already produced a BMR manual and distributed it to all BMR homeowners. While EPACANDO will continue to communicate with all BMR households, enforcement activity on the 11 noncompliant BMR homes will expedite in January 2023.

Based on City Council discussion at the April 5, 2022 City Council meeting, Council may choose to issue another Request for Proposals to contract this work with a bigger scope and using other potential funding sources. For example, East Palo Alto, like most cities with a BMR program, does not pass any program administration costs through to BMR homeowners.

EPACANDO estimates this cost to be $75 to $125 per unit per month. This would be a substantial cost for most low- or moderate-income BMR homeowners. Some cities charge an administrative fee and lower the price of the BMR unit accordingly. In the future, the City may wish to consider incorporating an administrative fee into the program.

When the Agreement expires on May 9, 2023, the City Manager will also have the authority to extend the Agreement for a second one-year period to exhaust the funds if they have not been used by the contract end date.

Next Steps
If approved, the City Manager will amend the Agreement with EPACANDO and BAAHA to fund costs associated with administration of the BMR unit portfolio in an additional amount of $41,000 for the remaining extension term expiring on May 9, 2023. The Agreement may be extended for a second one-year term thereafter upon City Manager approval, or City Council may wish to issue another RFP.

Fiscal Impact
The total increase in the not-to-exceed amount by $41,000 to $216,000 for continued BMR administration through May 9, 2023 will be funded by the Agreement with EPACANDO and BAAFA, using the Housing In-Lieu Fund (Fund 207). So far only $2,679.00 remain in the threeyear contract for BMR administration, and additional appropriation of $41,000 will be needed from the Housing in-Lieu Fund to pay for the BMR administration during the one-year extension between May 10, 2022 to May 9, 2023.

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

Attachments
A. EPACANDO BMR Enforcement Update (November 2022)
B. Resolution
C. April 5, 2022 Staff Report

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EPA CAN DO 2369 University Avenue East Palo Alto, CA 94303 - (650) 473-9838 o - (650) 473-0913 f, www.epacando.org 1 Board of Directors
Angah Miessi
Mark Moulton
Kenia Najar Miranda
Melvin Gaines
George Hunt
Anna Turner
William Webster
November 29, 2022
To: Karen Camacho, Interim Housing and Economic Devt. Manager, City of East Palo Alto From: Duane Bay, Executive Director, EPACANDO
Subject: Update on Below-Market-Rate (BMR) Enforcement Cases This report provides an update on the 11 BMR cases in which probable violations of the BMR regulatory agreements have been identified. In each of these cases, EPACANDO has been in contact with the homeowner to put them on notice of potential enforcement actions. The table below summarizes the statuses of these enforcement cases and provides EPACANDO’s recommendations for City action, as appropriate. In summary, the 11 cases involve 13 violations of the regulatory agreements: one failure to pay off a City loan, one failure to adhere to the owneroccupancy requirement (and possible renting-out of the home), three non-compliant transfers of title to living trusts, and eight non-compliant refinancings.

Notably, seven of the 11 enforcement cases involve some of the earliest BMR homes, in which the homeowners are bound by an older version of the BMR regulatory agreement that does not require homeowner cooperation with monitoring, an explicit requirement in the more modern regulatory agreements. The limitations of these old-version regulatory agreements impede the abilities of EPACANDO and the City to hold BMR homeowners accountable to the rules and regulations of the BMR program. Therefore, it is recommended that we seek opportunities to persuade these homeowners to sign onto the more modern version of the regulatory agreements, which also include some provisions that are more favorable to the homeowners. Some of EPACANDO’s recommendations below include making offers to the homeowners with old-version agreements to resolve their violations by signing onto the more modern regulatory agreements.

With regard to the three instances of non-compliant title transfers into living trusts, all three involve the old-version BMR regulatory agreement which does not permit transfers of title into trusts. In contrast, the more modern version of the agreement explicitly provides homeowners with this right, as long as they provide written notice to the City. However, that notice requirement differs from the regulations found in most other local agencies’ BMR programs, where most often agency approval is required before a homeowner may transfer their title into a living trust. EPACANDO recommends that the City consider amending its current regulatory agreement to add a requirement for City approval before a homeowner may transfer their title into a living trust, but this matter can be presented and discussed more thoroughly at a later date.

We hope to meet with the City in the near future to discuss our enforcement recommendations and determine the most appropriate next steps.

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Attachment: EPACANDO BMR Enforcement Update (November 2022) (2484 : Addition of Funds to Existing BMR Program Administration 2 Table: BMR Enforcement Cases, as of November 29, 2022 Alleged
Violation
Old or Modern
Regulatory
Agreement?
Actions Taken Thus
Far
Recommendations for
City Action

1. In default of
down payment
assistance loan
from City
Old agreement
(2000)
In 2011, City staff tried
to get owner to sign a
modification and
amendment to the note
and deed of trust, but
owner refused. More
recently, EPACANDO
has made numerous
additional attempts, but
these have also failed.

Send a Notice of Default
directing owner to cure
the violation by making
payments including
interest. The Notice can
state that if the default is
not cured, the City may
take further enforcement
action, up to and
including exercising its
City option to purchase,
or it may extend the
deadline to cure.

2. Non-compliant
refinance, but
currently not
over-financed
Modern
agreement
Sent Notice of Concern
(informing them of their
past violation and the
BMR rules for
refinancing, but taking
no further action).

Potentially send warning
letter, but take no further
enforcement action.

3. Non-compliant
refinance, but
currently not
over-financed
Modern
agreement
Sent Notice of Concern
(informing them of their
past violation and the
BMR rules for
refinancing, but taking
no further action).

Potentially send warning
letter, but take no further
enforcement action.

4. Non-compliant
refinance, but
currently not
over-financed
Modern
agreement
Sent Notice of Concern
(informing them of their
past violation and the
BMR rules for
refinancing, but taking
no further action).

Potentially send warning
letter, but take no further
enforcement action.

5. Non-compliant
refinance, but
currently not
over-financed
Old agreement
(2001)
Sent Notice of Concern
(informing them of their
past violation and the
BMR rules for
refinancing, but taking
no further action).

Send owner letter asking
them to sign onto new
regulatory agreement in
exchange for taking no
enforcement action.

6. Non-compliant
refinance, but
currently not
over-financed
Old agreement
(2002)
Sent Notice of Concern
(informing them of their
past violation and the
BMR rules for
refinancing, but taking
no further action).

Send owner letter asking
them to sign onto new
regulatory agreement in
exchange for taking no
enforcement action.

7. Non-compliant
refinance, but
currently not
over-financed
Old agreement
(2001)
Sent Notice of Concern
(informing them of their
past violation and the
BMR rules for
Send owner letter asking
them to sign onto new
regulatory agreement in

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Attachment: EPACANDO BMR Enforcement Update (November 2022) (2484 : Addition of Funds to Existing BMR Program Administration 3 refinancing, but taking
no further action).
exchange for taking no
enforcement action.

8. (1) Transferred
title to living
trust
(2) Noncompliant
refinance, but
currently not
over-financed
Old agreement
(2000)
(1) Sent Notice of
Concern. Received copy
of owner’s trust
agreement and reviewed
to confirm owner was
the beneficiary. Met
with owner to inform
them of violation; told
them no action is
necessary yet, but there
will be follow-up in the
future to reach a
resolution, and it may be
necessary to remove title
from trust to become
compliant.
(2) Sent Notice of
Concern (informing
them of their past
violation and the BMR
rules for refinancing, but
taking no further action).
(1) Send letter asking
owner to sign more
modern BMR agreement
which will explicitly
allow them to keep their
title in the living trust; if
they decline, consider
taking enforcement
action requiring them to
remove the title from
their trust.
(2) Potentially send
warning letter, but take
no further enforcement
action.

9. (1) Transferred
title to living
trust
(2) Noncompliant
refinance, but
currently not
over-financed
Old agreement
(2000)
(1) Sent Notice of
Concern. Sent letter
telling owner no action
is necessary yet, but
there will be follow-up
in the future to reach a
resolution, and it may be
necessary to remove title
from trust to become
compliant.
(2) Sent Notice of
Concern (informing
them of their past
violation and the BMR
rules for refinancing, but
taking no further action).
(1) Send letter asking
owner to sign more
modern BMR agreement
which will explicitly
allow them to keep their
title in the living trust; if
they decline, consider
taking enforcement
action requiring them to
remove the title from
their trust.
(2) Potentially send
warning letter, but take
no further enforcement
action.

10. Transferred
title to living
trust
Old agreement
(2001)
Sent Notice of Concern.

Received copy of
owner’s trust agreement
and reviewed to confirm
owner was the
beneficiary. Met with
owner to inform them of
violation; told them no
action is necessary yet,
but there will be followSend letter asking owner
to sign more modern
BMR agreement which
will explicitly allow
them to keep their title
in the living trust; if they
decline, consider taking
enforcement action
requiring them to

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Attachment: EPACANDO BMR Enforcement Update (November 2022) (2484 : Addition of Funds to Existing BMR Program Administration 4 up in the future to reach
a resolution, and it may
be necessary to remove
title from trust to
become compliant.
remove the title from
their trust.

11. Not owner-
occupied
Modern
agreement
Sent Notice of Concern.

Had owner sign
Affidavit of Residency
confirming she has
moved back into the
home as her permanent
residence. Reviewed and
verified documents to
demonstrate residency
(utilities, bank
statements, verification
of no rental income on
tax returns, etc.).

Potentially send warning
letter, but take no further
enforcement action.

Continue monitoring
case to ensure owner-
occupancy is legitimate.

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Attachment: EPACANDO BMR Enforcement Update (November 2022) (2484 : Addition of Funds to Existing BMR Program Administration Resolution No. XXX-2022 1 of 2
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING A CONTRACT AMENDMENT WITH EPACANDO FOR BMR PROGRAM ADMINISTRATION TO INCREASE THE CONTRACT AMOUNT BY 41,000 WHEREAS, on February 5, 2019, by Resolution No. 5080, the City Council authorized a Professional Services Agreement (“Agreement”) with East Palo Alto Community Alliance and Neighborhood Development Organization (“EPACANDO”) in the amount of $125,000 to administer the City’s Below Market Rate Program (“BMR Program”); and
WHEREAS, the initial term of the Agreement fully executed on May 10, 2019 was three years, with the option to extend for two additional periods of one year each; and WHEREAS, on July 20, 2021, by Resolution No. 107-2021, an additional amount of $50,000, for a total not-to-exceed amount of $175,000, was allocated from the Affordable Housing Fund (F207) to cover costs related to Palo Mobile Estates loan administration; and WHEREAS, on February 1, 2022, by Resolution No. 11-2022, the City Council clarified that the City Manager had authority to approve the optional extensions of one year each; and WHEREAS, on May 12, 2022, the City Manager approved the extension of the Agreement for one additional year through May 9, 2023; and
WHEREAS, EPACANDO has made significant progress towards completing the scope of work in the Agreement, and there are insufficient funds for these services to be provided beyond the initial agreement term; and
WHEREAS, an additional $41,000 in funds from the Housing In Lieu Fund is anticipated to cover the cost for the additional year of BMR Program administration, until May 9, 2023.

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

1. Amend the Agreement with EPACANDO and BAAHA for operation of the Below Market Rate Program to increase the not-to-exceed amount to $216,000; and

2. Appropriate $41,000 from the Housing In-Lieu Fund for BMR Program Administration.

PASSED AND ADOPTED this 6th day of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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Attachment: Resolution (2484 : Addition of Funds to Existing BMR Program Administration Agreement) Resolution No. XXX-2022 2 of 2
SIGNED:

Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

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

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Attachment: Resolution (2484 : Addition of Funds to Existing BMR Program Administration Agreement)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: April 5, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Rachel Horst, Housing and Economic Development Manager SUBJECT: Below Market-Rate Housing Program Administration Update Recommendation
Accept the report on the City’s Below Market Rate Housing Program administration.

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
The City’s current stock of Below Market Rate (“BMR”) homeownership units primarily consists of homes that were created through either monetary assistance from the former Redevelopment Agency or market rate developer obligations to create inclusionary units.

These homeownership units typically have a resale restriction agreement between the City (as the successor to the former Redevelopment Agency) and the homeowner. The resale restriction agreement regulates the price at which the homeowner may resell the property and gives the City an option to purchase the home if the homeowner wishes to sell.

To build back capacity after several years of limited oversight and administration of this affordable housing portfolio, in 2018, the City Council directed staff to issue a Request for Proposals (“RFP”) to identify a consultant to assist with creating a more efficient and costeffective program.

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Attachment: April 5, 2022 Staff Report (2484 : Addition of Funds to Existing BMR Program Administration Agreement) EPACANDO and the Bay Area Affordable Homeownership Alliance (“BAAHA”) were selected through this RFP process, and on February 5, 2019, by Resolution No. 5080, the City Council awarded the team of EPACANDO and BAAHA a 3-year contract (“Agreement”) totaling $125,000, with a three-year term that commenced in May 2019 and allows for two optional one-year extensions at the discretion of the City Manager.

The staff report from February 5, 2019 states there are “approximately 105 homes” in the City’s BMR portfolio. EPACANDO’s review of each file has shown this initial figure of 105 required further clarification. Across all BMR units citywide, there is a combination of City BMR units with a City-recorded restriction; Habitat for Humanity BMR units that the City monitors but does not have the ability to enforce; and units with a Downpayment Assistance Loan. The exact breakdown of unit types and totals is shown in the Analysis section below.

The purpose of this report is to provide an update on program operations since EPACANDO and BAAHA assumed the role of BMR Administrator in 2019.

Analysis
BMR Program Set-Up
One of the goals of the RFP was to identify a BMR Administrator that would institute a full BMR program by establishing a proper filing system, protocols and guidelines, and a point of contact for public inquiries.

To that end, the scope of work for the Agreement included several important “start-up” tasks:
• Hire a full-time Program Associate to oversee all aspects of the BMR program • Determine the number of BMR homes remaining in the City’s BMR portfolio • Review all case files for completeness and load basic information into a database • Conduct a basic “risk assessment”
• Re-instate an annual monitoring regimen
• Hold workshops or one-on-one homeowner consultation
Number of BMR Units in City Portfolio
Table 1 below summarizes all BMR units in the City’s portfolio. Initial estimates of peak program size were based on the existence of program files associated with 108 property addresses. EPACANDO found that historically, there were 74 BMR homes with a Cityrecorded restriction, before 14 planned contract expirations and 7 unplanned losses in years past. These unplanned losses were due to foreclosure or sale in violation of the BMR Resale Restriction Agreement. No homes have been lost out of the City’s BMR portfolio since 2013.

Table 1. Number of BMR Units in City Portfolio
Total # of files 108
Less files for rental BMRs, not in ownership BMR program (3) Less files for Habitat for Humanity, not in the City BMR program
(27)
Less files for down-payment assistance loans, not for BMRs (3) Less files for coordination of volunteer work to rehab a home (1) Files for properties that are now, or were, in BMR program 74

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Attachment: April 5, 2022 Staff Report (2484 : Addition of Funds to Existing BMR Program Administration Agreement) Less properties with 5-year affordability contract expiration (14) Less properties lost to foreclosure; City not able to intervene (4) Less properties sold in violation of resale agreement (3) Files for properties currently in ownership BMR program 53 As shown above, the City has enforcement authority over the units in its BMR program (74), though it also monitors the availability of other non-profit sponsored, permanently affordable homeownership units, including those built by Habitat for Humanity, as important community assets.

It should be noted that attrition in BMR programs is a challenge all jurisdictions experience over time. As a point of reference, a 2010 Regional Assessment of BMR Program Administration in San Mateo County, which the City participated in, provided findings and recommendations for best practices in affordable housing program administration. The assessment is provided as Attachment 1.

Other Start-Up Tasks
EPACANDO has reviewed all files, basic information has been loaded into the Homekeeper database, annual monitoring is now in its third cycle, and the initial risk assessment has been completed. A description of the monitoring and the findings of the risk assessment are presented under Current Operations, below.

Current Operations of BMR Program Administration
Operations comprise transactions, monitoring and enforcement. Transactional services include marketing new BMRs, conducting resales, and processing refinances, title changes and general inquiries. During the three years 2019, 2020, and 2021 there have been:
• No new BMRs to market
• Three resales
• Four refinances
• One title change
• Over 50 consultations
BMR Resales
For each of the three BMR resales conducted, more than 50 households applied, more than 25 households qualified for the lottery, and the ultimately successful buyer was an East Palo Alto resident. This result is attributable to focused outreach to current and former East Palo Alto residents, and to incorporation of the City’s local preference into the lottery – a system that increases the chances of locally employed individuals and local residents.

Other Transactions
Other transactional work, including refinances, loan payoffs, title changes, and other inquiries, is less complex but typically requires coordination among all parties involved: homeowner, BMR administrator, City staff, and a finance and real estate professional who may or may not be familiar with BMRs.

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Attachment: April 5, 2022 Staff Report (2484 : Addition of Funds to Existing BMR Program Administration Agreement) Monitoring & Education
EPACANDO is currently conducting its 2022 annual monitoring. As in 2020 and 2021, each BMR homeowner is asked to complete a notarized affidavit to confirm residency and acknowledge familiarity with BMR program regulations: notably, the requirements to not rent out the unit, refinance, remodel or change title without City approval.

The monitoring process now runs smoothly but required efforts up-front to gain homeowner cooperation, as many had not contacted by the City for such information for several years.

There are also variations in requirements. Though the current version of the Buyer’s Occupancy and Resale Restriction Agreement explicitly requires cooperation with monitoring and secures a right for the City to inspect interiors, neither of these conditions are in the agreements for 14 of the earliest BMR homes.

Except as detailed below, BMR homeowners are in compliance. EPACANDO reports that, primarily through conversations triggered by the monitoring process, BMR homeowners have refreshed their understanding of their regulatory documents and are now frequently initiating discussion of ordinary topics such as changes in family size, implications of the title-holders aging, family and extended family returning to or joining the household.

Compliance Concerns
Within the City’s BMR portfolio, there are 11 instances of probable violation that merit putting the homeowner on notice of potential enforcement, as summarized in Table 2 below.

TABLE 2: Compliance Concerns
Delinquent Down-Payment Assistance Loan 1
Non-Compliant Occupancy 1
Non-Compliant Refinance, Lower Risk 7
Non-Compliant Refinance, Higher Risk 2
Total 11
These are cases in which continued consultation has not resulted in the homeowner complying with the BMR regulations or relinquishing the home for resale. As shown above, these cases include not repaying a relatively small City loan; living out of state; and refinancing without permission, and for amounts originally above the restricted resale value. The “lower risk category” includes those that are no longer over-financed, as their resale value has risen; while those in the “higher risk” category are still over-financed, meaning the homeowner owes more than the restricted resale value of their home.

EPACANDO and City staff are currently coordinating next steps for these 11 cases.

Future BMR Administration
BMR program growth depends on construction of new for-sale or rental homes in developments covered by the City’s Inclusionary Housing Ordinance (“Ordinance”). The Ordinance requires that 20% of new units in a residential development be restricted at certain levels of affordability, and these units become part of the City’s BMR program. This will require technical assistance and oversight for developers and property managers, from marketing and lease-up or sale of the new units, and for all changes in ownership or tenancy in the future.

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Attachment: April 5, 2022 Staff Report (2484 : Addition of Funds to Existing BMR Program Administration Agreement) At this time, there are a small number of for-sale inclusionary units in the City’s pipeline, with only one unit under construction. EPACANDO will continue to monitor the portfolio and act as BMR Administrator for the duration of the Agreement term.

As the BMR program grows, the City Council may wish to revisit the administration of the program and make updates to the program structure and the City’s investment in it.

Fiscal Impact
There is no fiscal impact associated with the items described in this staff report. BMR administration is funded through the term of the Agreement with EPACANDO.

East Palo Alto, like most cities with a BMR program, does not pass any program administration costs through to BMR homeowners. EPACANDO estimates this cost to be $75 to $125 per unit per month. This would be a substantial cost for most low- or moderate-income BMR homeowners. Some cities charge an administrative fee and lower the price of the BMR unit accordingly. In the future, the City may wish to consider incorporating an administrative fee into the program.

Public Notice
The public was provided notice via publication in the Palo Alto Daily News on March 4, 2022, and by making the agenda and report available on the City’s website and at the San Mateo Co.

Library located at 2415 University Avenue, East Palo Alto.

Attachments

1. San Mateo County Regional Assessment of BMR Program Administration

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Attachment: April 5, 2022 Staff Report (2484 : Addition of Funds to Existing BMR Program Administration Agreement)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Jeff Liu, Interim Chief of Police
SUBJECT: Consideration of a Donation from H & H Evergreen Foundation for the Police Department Traffic Safety Awareness Program, Annual Toy Distribution Program, and Department Needs
Recommendation
Adopt a Resolution authorizing the City Manager to:

Accept a donation of funds in the amount of One Hundred Fifty Thousand Dollars ($150,000) from the H & H Evergreen Foundation, and execute a Donation Agreement to support the Police Department’s Traffic Safety Awareness Program ($30,000.00), Annual Toy Distribution Program ($20,000.00), and general department needs ($100,000) in accordance with the City’s Donation Acceptance Policy; and
Express the City Council’s appreciation for the donation to the H & H Evergreen Foundation.

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

Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 2: Enhance Economic Vitality
Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 6: Create a Healthy and Safe Community
Background
Since November 2014, the police department has received positive attention for engaging in a robust community policing program that included engaging the community, initiating new community policing programs, and substantially increasing the amount of involvement with the community. After initiating this model of community policing, the community assisted in

3.5 Packet Pg. 56
several high-profile criminal cases that lead to arrests and reduced crime. The media coverage has drawn a significant amount of attention from people in the region helping in many ways including financial contributions.

Analysis
This private donation made by the H & H Evergreen Foundation was made with the expressed desire from the donor to help facilitate a safer holiday season and to help families in need during the holiday season. The H & H Evergreen Foundation is donating $30,000.00 to assist in funding a traffic safety awareness program during this November and December holiday season and an additional $20,000.00 to families living in East Palo Alto. Additionally, the foundation is donating $100,000 to support East Palo Alto Police Department needs. The total amount of the donation is $150,000.00.

The department will acquire specific gift cards that will be given to community members that are involved in minor traffic violations and/or those demonstrating safe driving habits in the amount of $30,000.00. Additionally, the department will use the additional $20,000.00 to support the annual toy distribution program.

Fiscal Impact
There will be no fiscal impact on the department budget because the funds for the traffic safety program and the purchase of toys for families in need will be purchased by expending funds from the donation. Using the funds in this manner will follow the wishes of the donor and provide the department with the necessary funding for the programs.

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

Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) 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. Attachment - H&H Reso 2022

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

ACCEPTING A DONATION FROM H & H EVERGREEN FOUNDATION IN THE AMOUNT OF $150,000 TO BENEFIT THE EAST PALO ALTO POLICE

DEPARTMENT COMMUNITY PROGRAMS
WHEREAS, H & H Evergreen Foundation proposes to donate $150,000 to the City of East Palo Alto to support the Police Department’s community programs; and, WHEREAS, H & H Evergreen Foundation requested that $30,000 be used to purchase gift cards to be used in the holiday traffic safety program; and WHEREAS, H & H Evergreen Foundation also requested that $20,000 be used to fund the purchase of toys to support the Police Department’s annual holiday gift program for East Palo Alto families in need; and
WHEREAS, H & H Evergreen Foundation requested that $100,000 be used by the East Palo Alto Police Department for departmental needs.

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

1. Accept a donation of funds in the amount of One Hundred Fifty Thousand Dollars ($150,000) from the H & H Evergreen Foundation, and execute a Donation Agreement to support the Police Department’s Traffic Safety Awareness Program ($30,000.00) and Annual Toy Distribution Program ($20,000.00), and general departmental needs ($100,000) in accordance with the City’s Donation Acceptance Policy; and

2. Express the City Council’s appreciation for the donation to the H & H Evergreen Foundation.

PASSED AND ADOPTED this 6th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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Attachment: Attachment - H&H Reso 2022 (2480 : H&H Evergreen Donation) Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:

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

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Attachment: Attachment - H&H Reso 2022 (2480 : H&H Evergreen Donation)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, City Clerk
SUBJECT: Certificates of Appreciation for the First Annual Mayor and Vice Mayor Citywide Clean Up 2022
Recommendation
Accept the certificates of appreciation.

3.6 Packet Pg. 60

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Tomohito Oku, Finance Director
Greg Henry, Senior Management Analyst
SUBJECT: Updates to the City’s Contracting and Procurement Process Recommendation
Receive and file this report on updates to the City’s Contracting and Procurement Process and adopt a resolution approving the East Palo Alto Purchase Policy & Delegation of Authority.

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
A municipal contracting and procurement process is a set of guidelines and procedures that a local government follows when making purchases for goods and services. The purpose of such a process is to ensure that the government makes responsible and transparent decisions when spending taxpayer funds.

The specific details will vary depending on the municipality, but there are some common elements are typically included. For example, the process might outline the purchases are subject to the policy, such as goods and services over a certain dollar amount. It also might specify the approval process for making a purchase, which could include obtaining multiple quotes from vendors or obtaining approval from the Council.

Further, a municipal contracting and procurement process might include guidelines for selecting vendors. For example, the process could require that the selection of vendors be based on factors such as price, quality, and reputation. It might require that vendor selection be through a competitive bidding process in order to ensure the

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government is getting the best value for its money.

By following a clear set of guidelines and procedures, the City can ensure it is getting the best value for its money and that its spending decisions are subject to oversight and accountability.

The City of East Palo Alto’s contracting and procurement process comprises several elements, including:
· Municipal Code Chapter 2.84 Purchasing, which details the City’s requirements for the purchase or contract of supplies, services, equipment and public projects, including the City’s purchase policy required by Section 2.84.030. · Risk elements such as insurance requirements for contracts. · Additional contract requirements such as Exhibit D of the City’s standard contract which requires contractors follow the City’s Policy Against Discrimination, Harassment and Retaliation.

Analysis
As the City implements the new Enterprise Resource Program which will provide better controls for the City Manager, the Finance Department, and Department Heads, the City will update the current contracting and procurement process, bringing all the elements to a more modern standard.

When updating its municipal contract and purchasing process, the City will consider several key elements. These elements help ensure the process is fair, efficient, and transparent, and that it provides the best value for taxpayer funds.

The City will consider the following in the update to the Purchase Ordinance, Purchase Policy and contracting process:
· Purchasing Limits
Updating the requirements for informal bids or Request for Proposal before award.
· Adding specific “piggyback” terms.

Piggybacking is when an organization uses an existing competitively bid contract as a template to form their own contract directly with the vendor to purchase on the same or similar terms. For public agencies, management of the competitive bidding process typically must be by another government entity or by a mutual benefit association, such as US Communities. · Separate goods from services in the policy
Currently, the procedures for procuring goods and services treat both types of acquisitions the same way. It would improve the City’s purchasing process to separate the process for these two different types of purchases. · Adding local purchasing requirements.
· Ensuring conformity to Federal, State and County laws and requirements. · Public Contract Code
Update to ensure conformity and maximize the benefit of adhering to the California Public Contract Code.
· Setting order of precedents such that if the ordinance or policy conflicts with

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State, Federal or funding source requirements, those supersede the City requirements.
· Vendor Requirements.

Insurance amounts and types.

Proof of certification.

Because those updates are two distinct elements of the City’s Purchase Ordinance, Policy and contract process, the City will issue a request for proposals for firms to support the City in those updates to ensure that best practices and applicable laws are followed.

In the near term, there are two updates to the process.

The first is approval of the Purchase Policy. While City Council approval is required by Section 2.84.030, there is no current record of such. Adopting the Resolution will remedy this. Further, in order to improve efficiency, the proposed Purchase Policy delegates invoice approval authority down to the Manager level, at the discretion of the Department Heads, for invoices of less than $10,000. Currently, City Department Heads (including the City Manager) spend significant time approving minor expenses.

Second, the City will update is contracting process for vendors providing services that include interaction with children, specifically our Summer and Winter program vendors.

For those contracts, the City will develop requirements for Child Abuse Prevention and Human Trafficking Prevention Training. The exact form is as yet to be determined, but the City will consider either sponsoring and managing the training, or requiring proof of certification as part of the Request for Proposal process.

Fiscal Impact
There is no fiscal impact to this item.

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. Resolution Approving City Purchase Policy

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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

APPROVING THE EAST PALO ALTO PURCHASE POLICY & DELEGATION OF

AUTHORITY
WHEREAS, East Palo Alto Municipal Code Section 2.84.030 requires the City Council to approve the Purchase Policy; and
WHEREAS, the City of East Palo Alto has determined it is necessary to update its current purchase policy in order to ensure the policy reflects current best practices and meets the needs of the City; and
WHEREAS, the City Manager recommends the East Palo Alto Purchase Policy & Delegation of Authority as set forth in Exhibit A.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY approves the East Palo Alto Purchase Policy & Delegation of Authority as set forth in Exhibit A, attached hereto and incorporated herein by this reference.

PASSED AND ADOPTED this 6th day of December 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

3.7.a
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Attachment: Resolution Approving City Purchase Policy (2494 : Purchase Policy Update) Resolution No. XX-2022 2 of 2
Exhibit A
East Palo Alto Purchase Policy & Delegation of Authority Department heads are delegated the responsibility to review and approve Invoices, Purchase Orders and Budget Changes for their respective departments. Managers are delegated, at the discretion of their department head memorialized in writing, up to $10,000 in Invoice authority. Department Heads must approve all invoices for divisions without a manager.

The City Manager retains authority over the City Council and Clerk division Invoices, Purchase Orders and Budget Changes.

The Finance Director is delegated the responsibility to review and approve Invoices, Purchase Orders and Budget Changes for the Non-Departmental division.

The Public Works Director is delegated the responsibility to review and approve Invoices, Purchase Orders and Budget Changes for the Capital Projects division.

All executed contracts are signed by the City Attorney and City Manager. All executed purchase orders are signed by the Finance Director.

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Attachment: Resolution Approving City Purchase Policy (2494 : Purchase Policy Update)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Valerie J. Armento, Interim City Attorney
BY: Pam Derby, Executive Search Manager, CPS HR Consulting SUBJECT: City Attorney Appointment
Recommendation
Adopt a resolution authorizing the Mayor to execute an employment agreement with John D.

Lê for the position of City Attorney.

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

Priority No. 3: Increase Organizational Effectiveness and Efficiency Background
The City of East Palo Alto authorized a purchase order with CPS HR Consulting to conduct a recruitment for the position of City Attorney on June 29, 2022. This purchase order was previously approved by City Council through an existing contract for on-call recruitment services executed on February 28, 2022.

Following an exhaustive recruitment process, Mr. John Lê has been selected to serve as the next City Attorney for East Palo Alto. Mr. Lê has over 20 years of legal practice in both the private and public sectors, including government service in municipalities such as East Palo Alto, San Jose, and most recently the City of Alameda as its Assistant City Attorney since 2017.

CPS HR Consulting received ten applications for this position and recommended two candidates for Council’s consideration. This employment agreement was negotiated following the satisfactory completion of a comprehensive reference, media, and background check.

The major terms of this agreement include a three-year term; an annual salary of $227,468.84 subject to increases outlined in the agreement; other city allowances and benefits as outlined in the agreement; and a six-month severance for termination without cause.

Fiscal Impact

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There is no fiscal impact for filling position as it has already been budgeted.

Environmental
None.

Attachments
A. Resolution

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RESOLUTION NO.

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

CITY ATTORNEY AND AUTHORIZING THE MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF EAST PALO ALTO AND JOHN D. LÊ WHEREAS, the City used CPS HR Consulting to conduct a recruitment for a new City Attorney to perform all the legal duties identified in the City’s Municipal Code; and WHEREAS, the City Council desires to appoint and employ the services of John D. Lê, as City Attorney, with a start date of January 9, 2023, and to appropriately compensate him for such services; and
WHEREAS, John D. Lê desires to accept employment as the City Attorney of the City of East Palo Alto.

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

1. Appoints John D. Lê as the City Attorney of the City of East Palo Alto; and

2. Authorizes the Mayor to execute the Employment Agreement for City Attorney, attached as Exhibit A, between the City of East Palo Alto and John D. Lê, on behalf of the City Council.

PASSED AND APPROVED on this 6th day of December 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

3.8.a
Packet Pg. 68
Attachment: Resolution (2489 : City Attorney Appointment) 1 EAST PALO ALTO

CITY ATTORNEY EMPLOYMENT AGREEMENT
This Employment Agreement ("Agreement") is made and entered into as of this ___ day of _______ 2022 by and between the City of East Palo Alto, a municipal corporation, (hereinafter the "City"), and John D. Lê., (hereinafter the "City Attorney" or "Employee").

RECITALS

1. The City requires the services of a City Attorney for the City of East Palo Alto and the East Palo Alto City Council engaged in a recruitment process to select a City Attorney.

2. The “Employee” has the necessary education, experience, skills and expertise to serve as the City's City Attorney.

3. The City Council desires to employ “Employee” as the City Attorney and entered into negotiations with him for the purpose of entering into an employment agreement.

4. The “Employee” desires to accept the employment as City Attorney.

5. This Agreement is entered into pursuant to the authority of and subject to the provisions of Government Code Section 53260 et seq.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows:

1. Employment
City hereby appoints Employee as the City Attorney for the City of East Palo Alto to serve at the will of the City Council and to be subject to termination at any time with or without cause or prior notice and the Employee hereby accepts that appointment and employment. Term of Employment

D
This Agreement shall become effective as of December 6, 2022. Under this Agreement, Employee's term of employment as City Attorney shall be for three (3) years from 0RQGD\, January 9, 2023, and continue until January 9, 2026, unless sooner terminated as provided for in this Agreement.

E
The term and any extended term may be extended by mutual agreement of the parties.

On or before six months prior to the expiration of the term of this Agreement or any extended term, the City Council will consider an extension of the term of this Agreement. In the event that the City Council does not elect to extend the term of this

EXHIBIT A

3.8.a
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Attachment: Resolution (2489 : City Attorney Appointment) 2 Agreement or in the event that the term or any extended term is not extended by mutual agreement of the parties, this Agreement and the employment relationship shall end without further action by the City Council.
Salary and Benefits

D
City agrees to pay Employee an annual base salary of $227,468.84 payable at the same time and in the same manner that other City employees are paid. This salary shall be effective as of 0RQGD\, January 9, 2023, or such earlier date as Employee starts his employment with the City. Subject to a satisfactory performance evaluation (in accordance with Section 6 herein), Employee’s annual base salary shall be increased 3 -5% effective January 9, 2024. Subject to a satisfactory annual performance evaluation (in accordance with Section 6 herein), the City Council agrees to consider an increase to the Employee’s base salary on subsequent employment anniversary dates or as decided by mutual agreement of the parties. Employee's annual base salary may only be reduced at the same time and in the same percentage as any across-the-board reduction that is imposed upon other Executive Management employees in the City.

E
Employee shall receive the same Automobile allowance as other City Council appointees.

F
Employee shall be entitled to the same percentage increase in his pay as any inflation or similar adjustment that the City Council applies to all Executive Management personnel and/or City Council appointees.

G
Employee shall be entitled to receive all benefits as they now exist or may hereinafter be provided to other Executive Management employees of the City, including any changes or modifications to said benefits, except when such benefits are inconsistent with or contrary to provisions of this Agreement.
x Retirement: CalPERS 2.0% at 62 formula. Employee pays eight percent (6.25 %) contribution from gross salary per pay period (bi-weekly). x Medical: City pays 100% of Employee Coverage towards the cost of the insurance premium elected by the Employee, and 65% of Employee’s Dependent Coverage. x Dental: City pays 100% of the cost of the insurance premium for the employee. x Vision: City does not cover at this time. If City covers in future, Employee shall be entitled to whatever other Executive Management employees are provided. x Sick Leave: Employee accrues 4 hours of sick leave per pay period (bi-weekly). If Employee has insufficient accruals to cover approved vacation leave during the first eleven pay periods, up to 40 hours of sick leave may be used against future accruals.
x Vacation: Employee (a) accrues 6.15 hours of vacation per pay period (biweekly). (b) may maintain a maximum vacation balance of 320 hours (“accrual cap”), and (c) may cash out up to 40 hours of vacation per year through irrevocable election filed in December of the prior calendar year. If Employee has

3.8.a
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Attachment: Resolution (2489 : City Attorney Appointment) 3 insufficient accruals to cover approved vacation leave during the first six pay periods, up to 40 hours of vacation leave may be used against future accruals.

Cash out of a maximum of forty (40) hours is allowed in December of each year. x Management Leave: Employee accrues management leave at the same rate and upon the same terms as the City Manager.

4. Duties
(a) Employee shall serve as City Attorney and perform those duties and have those responsibilities that are commonly assigned to a City Attorney of a City in California.

The duties and responsibilities of the City Attorney shall include rendering legal services as may be requested by the City Council, the City Manager, Executive Management and Department Heads, as described in this Agreement. (b) Employee affirms that he is a member in good standing of the California State Bar, California Bar Number 253294, and that his continued California State Bar membership is a condition of his appointment and continued employment with the City. The services to be provided by Employee will include, but are not limited to, the following:
(1) Attend and provide legal counsel at all meetings of the City Council, except when on approved leave;
(2) Attend meetings of such other boards, commissions or committees, i.e., Planning Commission, Public Works & Transportation Commission, Rent Stabilization Board, Measure C Oversight Committee, and the Senior Advisory Committee of the City, as may be required;
(3) Act as chief legal counsel of the City government and exercise all duties and responsibilities of the City Attorney as specified by City ordinances and those duties as set forth in Chapter 2.16 of the East Palo Alto Municipal Code, and other legally permissible and proper duties and functions as assigned to him by the City Council;
(4) Be available to meet, in person or remotely, with City staff during regular office hours, and attend such additional meetings as may be required, including regular agenda setting meetings, conferring with the City Manager and department heads on legal matters;
(5) During the first year of employment, Employee will be present in City Hall no less than two days per week;
(6) Coordinate assigned activities with other City departments and outside agencies; provide highly responsible and complex legal advice and support to the City Manager's Office;
(7) Actively participate as a member of the City Manager's Executive Management team; Provide legal advice to City Council-appointed boards, and commissions and other appointed officials and outside counsel of the City; (8) Defend the City in litigation and/or oversee and coordinate outside counsel contracted to defend the City in litigation;
(9) Perform all statutory functions of the Office of City Attorney, any or all of which may be delegated to duly authorized designees, with approval of the City Council and as may be prescribed by City contracting requirements.

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Attachment: Resolution (2489 : City Attorney Appointment) 4 (c) Employee shall devote all necessary time and effort to fulfill the obligations of the City Attorney's position. The City acknowledges that Employee is reasonably expected to be available, in person or remotely, but does not have regularly set hours of work. Employee's work schedule will vary in accordance to the work required to be performed.

5. Exclusive Employment
Employee shall devote all of his time, energy and efforts to the City, and shall accept no outside employment, but the foregoing shall not limit Employee in teaching, writing, and lecturing, but only to the extent that such activities do not interfere with his duties as set forth in this Agreement.

6. Performance Evaluation
The City shall review and evaluate the performance of Employee at the initial six months of his employment and at least once annually at a time mutually agreed to between the City Council and Employee. The review and evaluation shall be conducted in accordance with procedures and forms and with respect to specific criteria to be developed jointly by Employee and the City Council. The review and evaluation shall be private and confidential, and the results shall be summarized and discussed in closed session, to the extent permitted by law, or through some other mutually acceptable closed format. The parties shall agree that the primary purposes of such evaluation are to facilitate open and frank discussion, define roles and expectations, identify performance strengths and weaknesses, and to provide an opportunity for the Employee to take affirmative action to address weaknesses and areas needing improvement.

7. Separation
(a) At Will Employment
Consistent with Government Code Section 36506 the parties expressly agree that the position of City Attorney is an "at-will" employee, and that the City Attorney serves at the will and pleasure of the City Council. Nothing in this Agreement, any statute, ordinance, regulation or rule shall prevent, limit, or otherwise interfere with the right of the City Council to terminate, with or without cause or reason, the employment of Employee.

The City Council may, in its absolute discretion, terminate the employment of Employee as City Attorney and terminate Employee's employment with the City. To terminate Employee's employment, the City, acting through the City Council, shall give Employee a written notice of the termination. The termination must be approved by three (3) members of the City Council at a regular or special meeting held in accordance with the Ralph M. Brown Act (California Government Code Section 54950 et seq.). The City Council is not required to provide a notice of causes or reasons for the termination and is not required to provide any type of hearing regarding the termination, including any type of "Skelly" hearing. If Employee is terminated, Employee shall have no right of appeal

3.8.a
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Attachment: Resolution (2489 : City Attorney Appointment) 5 or grievance procedure.
(b) Resignation
Employee may resign from his employment as City Attorney upon giving thirty (30) days prior written notice to the City Council; provided, however, that notice shall not be required in the event Employee resigns pursuant to a request for resignation by the City Council. Employee shall be compensated during the notice period. Employee at Employer's sole option may be directed not to report to work during all or any part of the resignation notice period.
(c) Automatic Termination
This Agreement, and Employee's employment, shall automatically terminate, and “Employee” shall not be entitled to any severance compensation upon the happening of any of the following events:
(1) Upon mutual agreement in writing by both parties to terminate this Agreement. (2) Upon resignation given to City by Employee, except if the resignation is in response to a request for resignation from the City Council. (3) Upon retirement from full time public service with the City, pursuant to applicable PERS laws, rules and regulations. If Employee retires, Employee will provide six (6) months advance notice.
(4) Upon death of Employee.
(5) When Employee has been unable to perform substantially all of the essential terms his position, with or without reasonable accommodation, due to illness or other disability for a period of three (3) months.
(6) Termination or removal for cause.
(7) Expiration of the term of this Agreement or any extended term. (d) Severance
In the event Employee is terminated for a reason set forth in sub paragraphs 7(d)(1)-(5) of this Agreement, City shall pay to Employee as severance compensation a sum equal to the lesser of Six (6) months base salary (“Severance Months”) or (ii) base salary for the number of months remaining on the term of this Agreement. (1) The City terminates Employee without cause.
(2) The City reduces Employee’s salary or other benefits in a greater percentage than applicable across-the-board reductions made by the City for other management employees in the City and Employee elects to give thirty (30) days written notice of his resignation to the City Council. The written notification of resignation must be given within thirty (30) days of the reduction in Employee's salary or other benefits.
(3) The City Council requests the resignation of Employee, and Employee resigns pursuant to that request.

3.8.a
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Attachment: Resolution (2489 : City Attorney Appointment) 6 (4) The city manager form of government is abandoned by action of the City Council, vote of the people, state legislation, or by any other means. (5) The position of city attorney is eliminated by action of the City Council, vote of the people, state legislation, or by any other means.

As required by Government Code Section 53260, the following provision is included in this Agreement. Regardless of the term of this Agreement, if it is terminated, the maximum cash settlement that employee may receive shall be an amount equal to his monthly salary multiplied by the number of months left on the unexpired term of this Agreement, and if the unexpired term of this Agreement is greater than six (6) months, the maximum cash settlement shall be an amount equal to the monthly salary of Employee multiplied by six (6).

The payment of severance compensation pursuant to this paragraph shall, at the option of Employee, be in a lump sum, or shall be payable in equal monthly installments with the number of monthly installments equal to the number of months of severance compensation pay to which Employee is entitled by this paragraph.

Employee and his dependents shall not receive continuing health insurance plan coverage for the duration of the Severance Months from the effective date of the termination. However, Employee will be eligible, at his own expense, to continue to receive benefits under COBRA.
(e) Termination or Removal for Cause
Notwithstanding any provision of this Agreement to the contrary, City may terminate Employee's employment for cause at any time, and if Employee is terminated or removed for cause, he shall not be entitled to payment of severance compensation or any other compensation or damages. "Cause" shall include the following reasons. (1) Conviction of a crime, whether misdemeanor or a felony, involving moral turpitude, or under the Political Reform Act, or under Government Code Section 1090 et. seq. For purposes of this paragraph, a plea of nolo contendere shall also be considered a conviction.
(2) Immoral or unprofessional conduct.
(3) Any act of dishonesty, fraud, or misrepresentation. (4) Failure to competently discharge the duties of the City Attorney. (5) Willful abandonment of the duties of the City Attorney. (6) Willful and intentional failure to carry out clear direction or order of the City Council.
(7) Evident unfitness for service.
(8) Continued abuse of drugs or alcohol that materially affects the performance of the City Attorney’s duties.
(9) Repeated and protracted unexcused absences from the City Attorney’s office and duties.
(10) Any significant act or omissions determined by the City Council to render Employee unfit to continue employment with the City.

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Attachment: Resolution (2489 : City Attorney Appointment) 7 8. Compliance with Government Code Section 53243 et seq.

In the event City determines to place Employee on paid leave pending an investigation, Employee shall fully reimburse such pay to the City if he is subsequently convicted of a crime involving the abuse of his office or position.
(a) In the event the City determines to fund all or part of a legal criminal defense for Employee, he shall fully reimburse such funds to the City if he is subsequently convicted of a crime involving an abuse of his office or position. (b) Regardless of the term of this Agreement, if this Agreement is terminated, any cash settlement related to the termination that Employee may receive from the City shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of his office or position.
(c) For purposes of this section, "abuse of office or position" shall be as defined in Government Code Section 53243.4.

9. Indemnification
City agrees to defend, hold harmless, and indemnify Employee against any claims, demands or legal actions, whether groundless or otherwise, arising out of an alleged act or omission occurring within the scope and during the course of Employee's employment with the City, subject to Employee cooperating in good faith with the City with respect to defense of such claims, demands, or legal actions in accordance with the provisions of California Government Code Sections 825 and 825.6. City may compromise and settle any such claim, demand, or action and pay the amount of any settlement or judgment rendered therefrom. This covenant shall survive the termination of this Agreement.

10. Notices
Any notice to be given hereunder by either party to the other in writing may be effected either by personal delivery or by mail. Mailed notices shall be addressed to the address of the parties to be notified which appears below, but each party may change its address by written notice given in accordance with this paragraph. Notices delivered personally will be deemed communicated as of actual receipt. Mailed notices will be deemed communicated and received as of five (5) calendar days following the date of mailing of the notice.

CITY: City Manager
City of East Palo Alto
2415 University Ave., Second Floor
East Palo Alto, CA 94303
EMPLOYEE: John D. Lê
348 Olive Avenue
Piedmont, CA 94611

3.8.a
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Attachment: Resolution (2489 : City Attorney Appointment) 8 11. Entire Agreement
This Agreement represents the entire agreement between the parties and supersedes any and all agreements, either oral or in writing, between the parties with respect to the employment of Employee by City and contains all of the covenants and agreements between the parties with respect to that employment. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by either party, or anyone acting on behalf of either party, which is not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding on either party.

12. Modifications
Any modifications to this Agreement shall be effective only if in writing and signed by both the parties hereto.

13. Effect of Waiver
The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be deemed a waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

14. Partial Inval idity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

15. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of California in full force and effect as of the date of execution.

16. Attorney's Fees
In the event of any legal action between the parties hereto to enforce the provisions of this Agreement, the prevailing party shall be entitled to attorney's fees and costs.

17. Representations
City and Employee each represent and warrant to the other that each has received legal advice from independent and separate legal counsel with respect to this Agreement, or has knowingly declined to obtain such legal advice, and further represent and warrant to

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Attachment: Resolution (2489 : City Attorney Appointment) 9 each other that each has carefully reviewed this Agreement and each and every term hereof.

This Agreement shall not be construed against the party or its representatives who draft it or any portion hereof.

18. Counterparts
This Agreement may be executed on separate copies, any one of which need not contain signatures of more than one party but all of which taken together shall constitute one and the same Agreement.
(SIGNATURES ARE ON THE FOLLOWING PAGE)

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Attachment: Resolution (2489 : City Attorney Appointment) 10 IN WITNESS WHEROF, the parties have executed this Agreement, effective as of the day and year first above written.

CITY OF EAST PALO ALTO,
a municipal corporation
By: Ruben Abrica, Mayor
APPROVED AS TO FORM:

By: Valerie J. Armento By: John D. Lê

3.8.a
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Attachment: Resolution (2489 : City Attorney Appointment)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, City Clerk
SUBJECT: Proclamation honoring Congresswoman Jackie Speier for her decades of public service and for her dedication in helping the community of East Palo Alto Recommendation
Present the proclamation.

Attachments
A. Placeholder Proclamation

3.9 Packet Pg. 79

3.9.a
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Attachment: Placeholder Proclamation (2490 : Honoring Congresswoman Jackie Speier)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, City Clerk
SUBJECT: Proclamation congratulating the Association of Indo Americans (AIA) for their educational and cultural events in the greater Bay Area to which East Palo Alto is regularly invited
Recommendation
Present the proclamation.

Attachments
A. Placeholder Proclamation

3.10 Packet Pg. 81

3.10.a
Packet Pg. 82
Attachment: Placeholder Proclamation (2491 : Congratulating the Association of Indo Americans (AIA))

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, City Clerk
SUBJECT: Proclamation congratulating Ortensia Lopez on her retirement as executive director of El Concilio of San Mateo County
Recommendation
Present the proclamation.

Attachments
A. Placeholder Proclamation

3.11 Packet Pg. 83

3.11.a
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Attachment: Placeholder Proclamation (2492 : Congratulating Ortensia Lopez)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, City Clerk
SUBJECT: Proclamation congratulating Gloria Flores-Garcia on her retirement as associate executive director of El Concilio of San Mateo County
Recommendation
Present the proclamation.

Attachments
A. Placeholder Proclamation

3.12 Packet Pg. 85

3.12.a
Packet Pg. 86
Attachment: Placeholder Proclamation (2493 : Congratulating Gloria Flores-Garcia)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, City Clerk
SUBJECT: Proclamation congratulating the East Palo Alto United Soccer Community for their youth development work and success in organized soccer in the last two decades
Recommendation
Present the proclamation.

Attachments
A. Placeholder Proclamation

3.13 Packet Pg. 87

3.13.a
Packet Pg. 88
Attachment: Placeholder Proclamation (2495 : Congratulating the East Palo Alto United Soccer

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Hansom Hom, Deputy Manager, Special Projects
Romeo Herrera, Chief Building Official
SUBJECT: Ordinance Adopting 2022 Building Standards Code Recommendation

1. Hold public hearing to adopt and amend East Palo Alto Municipal Code Chapters 15.08,

15.10, 15.11, 15.12, 15.15, 15.16, 15.20, 15.25, 15.30, 15.58 to adopt by reference the 2022 California Building Standards Code, including the following 2022 California Codes and specified appendices: Administrative Code; Building Code volumes 1 and 11; Residential Code; Electrical Code; Mechanical Code; Plumbing Code; Energy Code; Historical Building Code; Existing Building Code; Green Building Standards Code; and Fire Code, including ratification of the local amendments set forth in Menlo Park Fire Protection District Ordinance No. 49-2022; and amending section 15.32.010 pertaining to dangerous buildings.

2. Direct staff to return in early 2023 with options for local amendments to the Reach Codes (Green Building Code Chapter 15.11 and Energy Code Chapter 15.25 of the East Palo Alto Municipal Code).

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
Adoption of 2022 California Building Standards Code
Each local government is required by law to adopt new changes proposed by the State to the California Building Standards Code every three years (known as code cycles). The new code cycle will take effect January 1, 2023.

The adoption process for the Building Standards Code differs from adoption of other

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ordinances in terms of the timing for the public hearing. The first Council action, on October 18, 2022, was the introduction or first reading of the draft ordinance adopting the code revisions.

Staff has provided notice of the public hearing for December 6, 2022, when the City Council will consider the second reading/adoption of the ordinance.

Prior to this City Council meeting, staff conducted a community meeting to educate developers, contractors, residents, and other stakeholders on the Building Standards Code modifications that would likely impact construction projects during the upcoming three-year cycle. The community meeting took place on November 28, 2022 at Cooley Landing Education Center. We had six attendees one of which was a representative from Woodland Park Communities. Some of the questions asked were about submittal of current project and obtaining approval in the following code cycle. There were questions regarding existing projects and new identical projects.

During this code cycle, the Chief Building Official is not recommending any new local amendments to the codes (see below discussion of Reach Codes). As a result, the Council is not required to make any specific local findings to justify local amendments.

Staff recommends local adoption of 2022 California Building Standards Code. The new standards will be effective 30 days after adoption of the implementing ordinance included as Attachment 1.

As part of this code adoption process, staff also proposes revision of the previously adopted Uniform Code for the Abatement of Dangerous Buildings to reflect the correct year of the most recent adoption of that code.

Highlights of Significant Changes to 2022 Building Standards Code Notable amendments to the Building Standards Code required due to State mandates (not Reach Codes) include:
• Building Code Update. The 2022 Building Code triennial update includes minor language restatements and refinements in addition to requiring more energy-efficient installation for new residential construction and additional safety measures such as expanding Wildland Urban Interface requirements, and other energy-efficient installation for new commercial construction.
• Fire Code Update. The 2022 Fire Code update includes the requirement that any mobile food preparation vehicle have an operating permit, authorizes the code official to allow the removal of existing occupant use hose lines, and address all configurations of energy systems, including emergency power, standby power, fuel cell power, and stationary battery storage system requirements and to require 24/7 Fire Watch.

The City is required to enforce the newly adopted codes effective January 1, 2023. On October 18, 2022, the City Council introduced the attached ordinance to include the 2022 California Building Standards Code.

Reach Codes Update
The City adopted aggressive Reach Codes in 2020 that exceeded comparable codes enacted by neighboring jurisdictions. Reach Codes establish higher standards for clean energy, building electrification, and electric vehicle (EV) charging infrastructure than prescribed in the State’s CalGreen and Energy Codes. The 2022 State Codes have elevated the minimum requirements for building electrification and EV charging to continue the State’s pathway to decarbonization. However, the City’s existing Reach Codes meet or exceed the latest state

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requirements, except for necessary adjustments to EV charging standards.

While parallel amendments to the City’s Green Building Code (Chapter 15.11 of Municipal Code) pertaining to EV charging could be adopted along with the 2022 Building Standards Code, a discussion of broader amendments to the City’s 2020 Reach Codes that covers both the Green Building Code and the Energy Code (Chapter 15.25 of Municipal Code) is appropriate for Council consideration. Technology improvements continue to advance with more cost-effective solutions for both EV charging and building electrification. Incentive programs also are available from utility companies and Peninsula Clean Energy (PCE) to improve project feasibility. Possible Reach Code amendments could include increasing the requirements for EV charging stations, modifying the exceptions for compliance with the Energy Code, and expanding the electrification requirements for major building renovations.

Amendments to local Reach Codes do not have to occur concurrently with adoption of the California Building Standards Code. With direction from the City Council, staff proposes to return to the Council in early 2023 with options for expanding the City’s Reach Codes requirements to continue its leadership role in promoting clean energy and decarbonization.

With the assistance of PCE, staff would also share the latest status of Reach Codes in other jurisdictions for comparison.

Fiscal Impact
There is no fiscal impact with the items described in this staff report.

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. The public also was provided notice of this agenda item by notice published in the Palo Alto Daily News on November 11 and 18, 2022.

Environmental
The items described in this staff report are not considered a project under the provisions of the California Environmental Quality Act (CEQA).

Pursuant to Section 15061 (b)(3) of the California Code of Regulations, this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a Project which has the potential for causing a significant effect on the environment.

Attachments
A. Ordinance - East Palo Alto Building Code Update

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1 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
AMENDING EAST PALO ALTO MUNICIPAL CODE CHAPTERS 15.08, 15.10, 15.11, 15.12, 15.15,

15.16, 15.20, 15.25, 15.30, 15.58 TO ADOPT BY REFERENCE THE 2022 CALIFORNIA BUILDING STANDARDS CODE, INCLUDING THE FOLLOWING 2022 CALIFORNIA CODES AND SPECIFIED APPENDICES: ADMINISTRATIVE CODE; BUILDING CODE VOLUMES 1 AND 11; RESIDENTIAL CODE; ELECTRICAL CODE; MECHANICAL CODE; PLUMBING CODE; ENERGY CODE; HISTORICAL BUILDING CODE; EXISTING BUILDING CODE; GREEN BUILDING STANDARDS CODE; AND FIRE CODE, INCLUDING RATIFICATION OF THE LOCAL AMENDMENTS SET FORTH IN MENLO PARK FIRE PROTECTION DISTRICT ORDINANCE NO. 49-2022; AND AMENDING SECTION 15.32.010 PERTAINING TO DANGEROUS BUILDINGS.

WHEREAS, each California city is required to adopt the California Buildings Standards Code and is authorized to do so by reference pursuant to Health and Safety Code section 17922 and Government Code section 50022.2; and
WHEREAS, local jurisdictions are responsible for enforcement of the California Building Standards Code and must enact local administrative regulations and amendments in order to implement the California Building Standards Code; and
WHEREAS, the City of East Palo Alto is adopting the 2022 California Building Standards Codes as provided for and directed by the State of California.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO DOES ORDAIN AS FOLLOWS:

SECTION 1: CHAPTER 15.08 OF THE EAST PALO ALTO MUNICIPAL CODE The existing Chapter 15.08 of the East Palo Alto Municipal Code is hereby amended to read as follows.

Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

15.08.010 — Adoption by reference.

The “2022 California Building Code” is hereby adopted by reference as the Building Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules, including the following appendices: Chapter 1 Division II; Appendix H: Signs, the 2021 International Property Maintenance Code as referenced in section [A] 101.4.4., F, G, H, I, J, K, L, and M.

15.08.015 — Appeals
All Appeals of the East Palo Alto Building Standards and Housing Codes or the Building Official's actions shall be in accordance with Chapter 1.14 or Chapter 8.08 the East Palo Alto Municipal Code. (Replaces CBC Chapter 1, Division II section 113)

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Attachment: Ordinance - East Palo Alto Building Code Update (2485 : Ordinance Adopting 2022 Building Standards Code)

15.08.030 - Modifications to ACI 318.
2022 California Building Code Section 1905.1.8 is amended to read as follows: 1905.1.8 ACI 318, section 22.10. Delete ACL 318, section 22.10, and replace with the following:

22.10 - Plain concrete in structures assigned to seismic design category C, D, E or F.

22.10.1- Structures assigned to Seismic Design Category C, D, E or F shall not have elements of structural plain concrete, except as follows:
(a) Isolated footings of plain concrete supporting pedestals or columns are permitted, provided the projection of the footing beyond the face of the supported member does not exceed the footing thickness.

Exception: In detached one and two-family dwelling three stories or less in height, the projection of the footing beyond the face of the supported member is permitted to exceed the footing thickness.
(b) Plain concrete footing supporting walls are permitted, provided the footings have at least two continuous longitudinal reinforcing bars. Bars shall not be smaller than No. 4 and shall have a total area of not less than 0.002 times the gross cross-sectional area of the footing. A minimum of-one bar shall be provided at the top and bottom of the footing. Continuity of reinforcement shall be provided at comers and intersections.

Exception: In detached one and two-family dwellings three stores or less in height and constructed with stud bearing walls, plain concrete with at least two continuous longitudinal reinforcing bars not smaller than No.4 are permitted to have a total area of less than 0.002 times the gross cross -sectional area of the footing.

SECTION 2: CHAPTER 15.10 OF THE EAST PALO ALTO MUNICIPAL CODE The existing Chapter 15.10 of the East Palo Alto Municipal Code is hereby amended to read as follows.

Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

15.10.010 — Adoption by reference.

The “2022 California Residential Code” is hereby adopted by reference as the Residential Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

15.10.020 — Appendix.

The following appendices of the 2022 California Residential Code are hereby adopted:
• Appendix AF: Radon Control Methods
• Appendix AH: Patio Covers
• Appendix AI: Private Sewage Disposal
• Appendix AJ: Existing Buildings and Structures
• Appendix AK: Sound Transmission

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Attachment: Ordinance - East Palo Alto Building Code Update (2485 : Ordinance Adopting 2022 Building Standards Code) 3 • Appendix AO: Automatic Vehicular Gates
• Appendix AQ: Tiny Houses
• Appendix AR: Light Straw-Clay Construction
• Appendix AS: Strawbale Construction
• Appendix AT: Solar-Ready Provisions—Detached One-and Two-Family Dwellings and Townhouses
• Appendix VAX: Swimming Pool Safe Act

15.10.030 — Concrete Construction.
2022 California Residential Code Section R403.l.3 is amended to read as follows:

R403.1.3 Seismic reinforcing. Concrete footings located in Seismic Design Categories DO, DI and D2, as established in Table R301.2(1), shall have minimum reinforcement of at least two continuous longitudinal reinforcing bars not smaller than No.4 bars. Bottom reinforcement shall be located a minimum of 3 inches (76 mm) clear from the bottom of the footing.

In Seismic Design Categories D0, DI and D2 where a construction joint is created between a concrete footing and a stem wall, a minimum of one No.4 bar shall be installed at not more than 4 feet (1219 mm) on center. The vertical bar shall extend to 3 inches (76 mm) clear of the bottom of the footing, have a standard hook and extend a minimum of 14 inches (357 mm) into the stem wall.

In Seismic Design Categories D0, DI and D2 masonry stem walls without solid grout and vertical reinforcing are not permitted.

Exception: In detached one- and two-family dwellings which are three stories or less in height and constructed with stud bearing walls, isolated plain concrete footings supporting columns or pedestals are permitted.

SECTION 3: CHAPTER 15.11 OF THE EAST PALO ALTO MUNICIPAL CODE The existing Chapter 15.11 of the East Palo Alto Municipal Code is hereby amended to read as follows.

Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

15.11.010 — Adoption by reference.

The “2022 California Green Building Standards Code” is hereby adopted by reference as the Green Building Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

15.11.020 — Appendix.

The following appendix of the 2022 California Residential Code is hereby adopted:
• Appendix A5: Nonresidential Voluntary Measures
SECTION 4: CHAPTER 15.12 OF THE EAST PALO ALTO MUNICIPAL CODE

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Attachment: Ordinance - East Palo Alto Building Code Update (2485 : Ordinance Adopting 2022 Building Standards Code) The existing Chapter 15.12 of the East Palo Alto Municipal Code is hereby amended to read as follows.

Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

15.12.010 — Adoption by reference.

The “2022 California Electrical Code” is hereby adopted by reference as the Electrical Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

SECTION 5: CHAPTER 15.15 OF THE EAST PALO ALTO MUNICIPAL CODE The existing Chapter 15.15 of the East Palo Alto Municipal Code is hereby amended to read as follows.

Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.
1 — Adoption by reference,
The “2022 California Existing Building Code” is hereby adopted by reference as the Existing Building Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

SECTION 6: CHAPTER 15.16 OF THE EAST PALO ALTO MUNICIPAL CODE The existing Chapter 15.16 of the East Palo Alto Municipal Code is hereby amended to read as follows.

Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

15.16.010 — Adoption by reference.

The “2022 California Plumbing Code” is hereby adopted by reference as the Plumbing Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

15.16.020 — Appendices.

The following appendices of the 2022 California Plumbing Code are hereby adopted:
• Appendix J: Combination of Indoor and Outdoor Combustion and Ventilation Opening Designs • Appendix K: Potable Rainwater Catchment Systems
• Appendix L: Sustainable Practices
• Appendix M: Peak Water Demand Calculator
SECTION 7: CHAPTER 15.20 OF THE EAST PALO ALTO MUNICIPAL CODE Chapter 15.20 of the East Palo Alto Municipal Code is hereby amended to read as follows. Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

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Attachment: Ordinance - East Palo Alto Building Code Update (2485 : Ordinance Adopting 2022 Building Standards Code) 5 15.20.010 — Adoption by reference.

The " 2022 California Mechanical Code" is hereby adopted by reference as the Mechanical Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

15.20.020 – Appendix.

The following appendices of the 2022 California Mechanical Code are hereby adopted:
• Appendix A: Residential Plan Examiner Review Form
• Appendix B: Procedures to be Followed to Place Gas Equipment in Operation • Appendix C: Installation and testing of Oil (Liquid) Fuel-Fired Equipment • Appendix D: Fuel Supply: Manufactured/Mobile Home Parks and Recreational Vehicle Parks • Appendix E: Sustainable Practices
• Appendix F: Geothermal Energy Systems
• Appendix G: Sizing of Venting Systems and Outdoor Combustion and Ventilation Opening Design
SECTION 8: CHAPTER 15.25 OF THE EAST PALO ALTO MUNICIPAL CODE Chapter 15.25 of the East Palo Alto Municipal Code is hereby amended to read as follows. Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

15.25.010 — Adoption by reference.

The “2022 California Energy Code” is hereby adopted by reference as the Energy Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

SECTION 9: CHAPTER 15.30 OF THE EAST PALO ALTO MUNICIPAL CODE Chapter 15.30 of the East Palo Alto Municipal Code is hereby amended to read as follows. Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

15.30.010 — Adoption by reference.

The “2022 California Historical Building Code” is hereby adopted by reference as the Historic Building Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

SECTION 10: CHAPTER 15.58 OF THE EAST PALO ALTO MUNICIPAL CODE Chapter 15.58 of the East Palo Alto Municipal Code is hereby amended to read as follows. Sections and subsections that are not amended by this Ordinance are not included below and shall remain in full force and effect.

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Attachment: Ordinance - East Palo Alto Building Code Update (2485 : Ordinance Adopting 2022 Building Standards Code)

15.58.010 — Adoption by reference.

The “2022 California Fire Code” is hereby adopted by reference as the Fire Code of the City of East Palo Alto. All references to jurisdictional requirements are found in the East Palo Alto Municipal Code or other appropriate schedules.

15.58.020 —Ratification.

Menlo Park Fire Protection District Ordinance No. 44-2022 is hereby ratified and adopted by reference as a local amendment to the “2022 California Fire Code.” SECTION 11: SECTION 15.32.010 OF THE EAST PALO ALTO MUNICIPAL CODE Section 15.32.010 of the East Palo Alto Municipal Code is hereby amended to read as follows.

15.32.010 - Uniform Code for the Abatement of Dangerous Buildings.

The code of rules and regulations known and designated as the “Uniform Code for Abatement of Dangerous Buildings,” 1997 Edition, published by the International Conference of Building Officials, to provide a just, equitable and practical method, to be cumulative to, with and in addition to, any other remedy provided by the building code, housing code, or otherwise available at law, whereby buildings or structures which from any cause endanger the life, limb, health, morals, property, safety or welfare of the general public or their occupant, may be required to repair, vacate or abate, and applies to all dangerous buildings, as defined in this chapter, which are now in existence or which may hereafter become dangerous in the city, printed in book form and filed in the office of the clerk of the city council of the city, is adopted and by reference incorporated in this chapter as if fully set forth, as the abatement code of the city.

SECTION 12: INTERPRETATION
In interpreting and applying the provisions of this ordinance, the requirements contained herein are declared to be minimum requirements for the purposes set forth. The provisions of this ordinance insofar as they are substantially the same as existing statutory provisions relating to the same subject matter, shall be construed as restatements and continuations and not as new enactments. This ordinance shall not nullify the more restrictive provisions of covenants, agreements or other ordinances or laws, but shall prevail as to such provisions which are less restrictive.

SECTION 13: CONSTITUTIONALITY AND SEVERABILITY
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of East Palo Alto declares that it would have passed this ordinance and every section, subsection, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

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Attachment: Ordinance - East Palo Alto Building Code Update (2485 : Ordinance Adopting 2022 Building Standards Code) 7 SECTION 14: EXEMPTION FROM CEQA
The City Council finds, pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3), that this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a Project which has the potential for causing a significant effect on the environment.

SECTION 15: EFFECTIVE DATE.

This ordinance shall become effective and in full force and effect thirty days after its adoption.

SECTION 16: PUBLICATION.

The City Clerk shall cause this ordinance to be published according to legal requirements.

Introduced at a regular meeting of the City Council held October 18, 2022 PASSED AND ADOPTED this 6th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

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

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Attachment: Ordinance - East Palo Alto Building Code Update (2485 : Ordinance Adopting 2022 Building Standards Code)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Karen Camacho, Housing Project Manager
Elena Lee, Planning Manager
Hansom Hom, Deputy Manager, Special Projects
SUBJECT: Discussion of Possible Zoning Amendments and Other Measures to Incentivize the Construction of ADUs
Recommendation
Provide feedback on possible measures to incentivize the construction of Accessory Dwelling Units (ADUs), and direct staff to return in early 2023 with recommendations on: 1) an updated ADU Ordinance; 2) fee waivers or reductions and other financial incentives; 3) development review streamlining measures; and 4) other approaches to facilitate the construction and legalization of ADUs.

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
Overview
California has witnessed a housing shortage for several decades. Most of the housing that is being built occurs in bedroom communities that are far from most jobs. This pattern contributes to a worsening commute-time traffic, automobile-generating pollution, and attendant build-up of green-house gases, as well as a loss of productivity due to the long hours spent commuting between work and residences.

Research has shown that in the last couple of decades housing supply in California has lagged far behind demand. This has resulted in an astronomical rise in housing costs with the average household having a harder time, more than ever before, in accessing affordable housing. The San Francisco Bay Area has especially experienced constrained housing production that has

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not kept pace with employment and population growth. The insufficiency of housing to meet the demand has escalated both sales prices and market rents for housing units.

Recognizing that California is experiencing a housing crisis, the state legislature and various local government agencies have been looking beyond the traditional modes of housing production to expand housing types. One housing type, Accessory Dwelling Units (ADUs), has received much attention as a viable, cost-effective way to combat the housing crisis and provide affordable units.

ADUs (also known as second units, in-law quarters, granny units, etc.) have been around for a long time. In the past, cities and counties regulated them very differently; some had zoning ordinances that prohibited them altogether. Recent state legislative actions allow ADUs “by right,” which means cities cannot require discretionary approval of these units if certain standards are met. This has streamlined the processing of ADU applications statewide.

An ADU is accessory to a primary residence and has complete independent living facilities for one or more persons. ADUs can be new living spaces, detached or attached, to the primary residence. Existing space within a primary dwelling, an accessory structure, or an attached or detached garages may be converted to an ADU. This form of housing has enormous benefits for both renters and homeowners. Such units are considered natural affordable housing as market rents tend to be lower.

These units also provide more flexible housing options for extended families, such as aging parents and adult children. ADUs also offer a solution for seniors to “age-in-place" while creating rental income to cover housing and living costs.

State ADU Legislation
During the past decade, the California Legislature has passed multiple laws to allow ADUs by right in single-family and multi-family zoning districts. The objective of these laws is to facilitate the supply a relatively affordable rental housing type within all residential communities in California. The state legislation is challenging to follow and has evolved over the years. As soon as a city updates its ADU regulations, a new state law is passed. East Palo Alto last amended its ADU regulations in 2020, but further amendments are necessary to conform with state law enacted in 2022. Attachment A provides a chronology of state legislation on ADUs enacted from 2016 to 2022. The latest bill is SB 897 was signed by the Governor in September 2022 and will be effective January 1, 2023. The key provisions of this bill are listed in Attachment A. City ADU regulations that need to be updated to conform with SB 897 are noted in Table A in the Analysis section.

City ADU Regulations
In June 2014, the City Council adopted Ordinance 380 to allow second units/ADUs, garage conversions to habitable space, and guest houses to promote local affordable housing options.

Ordinance 380 was the subject of extensive community engagement and reflects the City’s interest in supporting these types of developments. (See Attachment B for a summary of Community Engagement efforts on ADUs)
In January 2017, the City Council amended the ADU Ordinance to bring the regulations into compliance with the 2016 ADU legislation. The updated ADU regulations were codified in Chapter 18.96 of the East Palo Alto Municipal Code (EPAMC) as part of the comprehensive Development Code updates in 2018.

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In November 2020, the city revised its ADU ordinance (“Current ADU Ordinance”) and brought the City's ADU regulations into compliance with then-current state legislation on ADUs. The 2017 ADU Ordinance was a critical reference point for the Current ADU Ordinance. It provided a baseline of requirements that were adjusted for conformance with state legislation, as well as to reflect the City Council’s approach on such issues as the maintenance of community character through neighborhood compatibility. Some of the changes in the 2020 ordinance were the following:
· JADU Size. Defined and codified the size limitations of a Junior Accessory Unit (JADU). · Minimum Lot Size. An attached ADU is allowed on a parcel zoned residential or mixeduse with a lot size consistent with the requirement of the underlying zoning district. · Unit Size. The maximum size of an ADU living area, inclusive of habitable basement and attic, may not exceed 1,000 square feet (sf). If there is an existing single-family dwelling, the total floor area of the attached ADU may not exceed 50% of the existing primary dwelling
· Site Coverage and Floor Area Ratio (FAR). The total floor area of the main dwelling and the ADU shall not exceed the permissible floor area ratio or lot coverage for the underlying zoning district provided at least an 800-square foot accessory unit is allowed. · Open Space. A minimum of fifty percent (50%) of the remaining rear yard or 750 square feet of open space, whichever is less restrictive, must be provided and maintained as usable rear yard open space with no permanent hardscape for life of the project on the lot.
· Parking. A minimum of one (1) uncovered off-street parking space must be provided for the ADU in addition to the off-street parking spaces required for the main dwelling.

Covered parking is not required.
· Exceptions to Parking Requirements. No parking requirement shall be imposed for the construction of an Accessory Dwelling Unit if:
o The unit is within ½ of transit
o The unit within an architecturally or historically significant historic district. o The unit is part of an existing primary dwelling or existing accessory structure o On-street parking permits are required but not offered to the occupants of the unit o There is a car share vehicle within one block of the unit · Replacement Parking. Replacement parking shall not be required when a garage or covered carport is demolished in conjunction with the construction of an ADU, or conversion of that parking structure into an ADU
· Access. The ADU shall be served by the same driveway access to the street as the existing main dwelling. Access via an alley may be allowed to a detached ADU when a property abuts a public alley.
· Common Entrance. If the ADU is attached to the main dwelling, both the ADU and the main dwelling unit must be served by a common entrance or a separate entrance to the ADU must be located on the side or at the rear of the main dwelling, whenever feasible. · Setback for Accessory Structure or Garage Conversion. No setback may be required for a legally constructed accessory structure converted to an ADU. Junior ADUs are not allowed in an accessory structure.
· Height. Any ADU may not exceed 17 feet in height in addition to any required elevation for floodproofing pursuant to Section 15.52.070.A of the Municipal Code. · Additional Provisions Applicable to Junior Accessory Dwelling Units were included.
· Zoning Clearance for Accessory Unit. Review of an application for a Zoning Clearance for an accessory unit is ministerial in nature.

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Analysis
Staff continues to hear from applicants expressing an interest in legalizing previously converted garages or detached accessory structures into ADUs without benefit of permits.

There also is interest among staff and the development community to streamline the permitting process for ADUs to improve efficiency and reduce processing time. There has been a gradual uptick in the number of inquiries about, and subsequent applications for, ADUs in the City over the last five (5) years. Over that period there have been 68 Zoning Clearance and 72 Permit approvals by the Planning and Building Divisions’ respectively. While the review times vary depending on the underlying issues, such as existing Code Enforcement cases and applicants' preference to combine ADUs with other improvements, etc., these projects received Zoning Clearance within 30-days on the average, which matches the 30-day review cycle for Building Permit application. It should be noted, however, that the State mandated 60-day ministerial review period for ADU’s applies solely to the Building permit stage, after the Zoning Clearance.

A breakdown of the approvals is provided in Attachment C.

Additionally, there is the need to review and realign the Municipal Code to bring it into conformance with the latest legislative changes resulting from the approval of State Senate Bill SB 897 as previously mentioned. Staff suggests that additional measures beyond permit streamlining and zoning amendments for state law compliance could be considered to further promote and incentivize the construction of ADUs, provided that life and safety requirements are met.

Options for City Council consideration to facilitate the construction of ADUs can be grouped into the following categories and topics. Additionally, the Council may suggest other options for staff to explore.

A. Amendments to ADU Zoning Regulations

1. Comprehensive Code Clean-Up/State Law Compliance
Staff recommends the Council direct staff to proceed with a comprehensive amendment of the Development Code ADU regulations to bring its provisions and requirements into conformance with current state ADU legislation. Staff recommends these changes include the following:
a. Clean up the Code to clarify that an ADU within an existing or proposed primary dwelling or attached or detached unit built within standard buildable areas may be constructed on the second floor.
b. Incorporate language about conversions, including from attached garages, detached accessory structures, etc.
c. Clarify the height/other requirements for detached and attached ADUs. d. Clarify requirements for ADUs in multi-family dwellings.

Table A summarizes the key elements of the current East Palo Alto ADU regulations including those for which amendments are necessary. The State regulations apply a minimum standard.

The City has the option to be more permissive.

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Table A
Key Differences Between East Palo Alto and State ADU Regulations

9.1 Packet Pg. 103

2. Setback Reductions or Exceptions
Inquiries have been received regarding the ability of the City to relax the required rear and side setbacks, at times with a request for a zero side and/or rear setback. ADUs have been constructed as a new detached structure in the rear yard and also through conversions of existing legal detached accessory structures. Under the Current ADU Ordinance, detached ADUs must have minimum rear and side yard setbacks of four feet. The Development Code requires that detached accessory structures (larger than 120 sf) have a minimum rear yard setback of six feet and side yard setback of three feet. However, some homeowners have chosen to convert existing accessory structures located less than four feet from side and rear property lines. While conversions are allowed to have less than the four-foot setbacks, the original structure must have been legally constructed.

Verifying the legal status of existing accessory structures has been difficult due to the lack or permit history, particularly for structures constructed before the City was incorporated in 1983. Reducing the setback requirements would allow more unverified or unpermitted accessory structures to be potentially eligible for conversion to ADUs.

While an estimate of the number of these structures is uncertain until further research is conducted, staff has encountered several cases where converting the structure could not be approved under current setback standards because of the inability to verify the structure had previously been approved or permitted.

Staff reviewed the ordinances of several neighboring cities (San Bruno, Menlo Park, Redwood City, and South San Francisco) to understand their code requirements with respect to an ADU. In all cases the setbacks were the same, the only difference occurring with accessory structures (see Table B). Staff is aware that some other cities have reduced setbacks or even allowed zero rear setbacks for accessory structures on condition that those structures meet the code requirements for building and fire safety on the property line. If Council determines that relaxing the setback requirement would facilitate the development of detached accessory structures in the city, it could direct staff to include such a change for future Council consideration.

9.1 Packet Pg. 104

3. Flexibility in Open Space Requirement
The 750-sf requirement for open space should be reviewed and clarified for consistency with the recent legislative changes included in SB 897, especially for an ADU which is no larger than 800 square feet. If setback requirements are met, flexibility could be considered in requiring the 750-square foot requirement.

4. Driveway Exceptions: Second Driveways for Corner Lots EPAMC Section 18.30.080.A.5 states that properties in the single-family zoning district (RLD) can have only one driveway. Staff has received requests for a second driveway for ADUs on corner lots, with applicants arguing that it would enable more parking on their properties. An exception could be considered to allow a second driveway on corner lots, provided design and safety requirements are met.

5. Objective Design Standards
SB 897 provides that cities can only impose objective design standards for reviewing ADUs. Standards cannot be subjective or uncertain. While ADUs are allowed by right and subject to ministerial review only, objective design standards may establish measures to mitigate concerns of neighbors and reduce the potential impacts of ADUs on adjacent properties, particularly if reduced setbacks are allowed. A future work program item for Planning is preparing objective design standards for all residential development, and it would be appropriate to include specific design standards for ADUs as part of these objective standards.

B. Development Review Streamlining

1. Process Improvements
The current process for approval an ADU involves two applications: an initial Zoning Clearance process by the Planning Division, prior to a subsequent Building Permit

9.1 Packet Pg. 105
approval by the Building Division. A shorter, streamlined process could fold the Zoning Clearance process in the Building Permit approval where the Planning staff will review the Building Permit application to ensure that the ADU complies with objective development and design standards, as well as other Development Code requirements.

To facilitate this transition and ensure the cost recovery of Planning Services, however, the Building Division staff would be required to collect the applicable Planning fees at the Building Permit intake. Alternatively, the City Council can waive the applicable Planning fees if it concludes that doing so would further facilitate the development of Accessory Dwelling Units in East Palo Alto (see discussion below).

Another option, if the Council desires to maintain the current two-step application process for an ADU, is to rename the processing of Zoning Clearance to a different nomenclature. This would separate the ADU process from other Zoning Clearance applications and thus help to clarify that the ADU approval process is ministerial and not appealable.

2. Pre-Review/Approval of ADU Model Plans
With the growing interest among homeowners to construct ADUs, the design and construction industry have responded with model architectural plans and prefabricated or modular units for ADUs which provide “off-the-shelf" design options for homeowners.

These options can reduce the cost of hiring an architect or designer to prepare a customized plan for a client. While these plans still require a building permit from the City (or for prefabricated or modular units a state certification), the permit process can be simplified and streamlined. A further streamlining measure is having the City preapprove model plans; homeowners would then have greater assurance that these plans meet building and fire code standards. It should be noted however that Zoning Clearance and a Building Permit are still required to confirm conformance with zoning standards and to review the foundation design, electrical, mechanical, and plumbing work.

3. Design Assistance/Permit Facilitation
While permit streamlining and simplification of the approval process for ADUs can facilitate the construction of ADUs, homeowners may find that the process of preparing design plans, obtaining financing and permits, and constructing an ADU is still a daunting project. An option considered by some cities is offering the services of a thirdparty designer, architect, or contractor to assist homeowners in constructing an ADU.

The third-party firm or individual would be familiar with the City’s zoning and building standards and review process. With establishment of program criteria and insurance requirements, the services can be offered to homeowners at a nominal or affordable fee by the designer, architect or contractor.

C. Financial Incentives or Assistance for Construction of ADUs

1. Waiver or Reduction of Permit Processing Fees
Planning and Building permit processing fees can be a disincentive for homeowners to construct an ADU. The City Council can consider reducing planning and building fees.

Various fee waivers or reductions can be considered, such as based on the size of ADU. A fee waiver could be considered for nonprofits and homeowners willing to build an ADU with a deed restriction (i.e., that the unit will be rented and maintained as an affordable unit). Fee waivers should be balanced with the financial impact of reducing

9.1 Packet Pg. 106
revenue that covers staff operating costs for permit processing.

Existing Planning and Building Permit Fee Costs
Homeowners, nonprofit organizations, and developers wishing to build an ADU currently pay between $5,000 to $10,000 in Planning, Building, and other permit processing fees depending on the size and building valuation of the ADU. Table C provides a summary of common ADU fees that are charged at the Planning entitlement stage and later at the Building permit stage.

Table C
ADU Fees Permit Processing Fees
As an example, the City’s ADU Working Group found in 2022 that the permit costs for a sample ADU project in the City was nearly $10,000 as itemized below:

Building Fee (October 2021): $3,116.22
EPASD Permit: $525
Planning Fee (October 2021): $586
Fire Fee: $220
CCTV DVD: $5
Encroachment Permit (January 2022): $764
Lateral Repair: $4,500
Total Cost: $9,711.22
Existing City Financial Assistance
The City has a CalHome ADU/JADU loan program (“CalHome Program”) to provide low-interest loans of up to $80,000 to income-qualified homeowners interested in building ADU/JADUs, in exchange for renting their units to income-eligible East Palo Alto households. The California State Department of Housing and Community Development (“HCD”) awarded the City with the CalHome program award in an amount of $2 million in July 2020.

On October 19, 2021, via Resolution No. 141-2021, the City issued an agreement with East Palo Alto Community Alliance and Neighborhood Development Organization (“EPACANDO”) to help administer the CalHome program until June 2024. The City worked with EPACANDO, HCD, and Meriwest Credit Union (“Meriwest”) to establish

9.1 Packet Pg. 107
program guidelines and launched the program on January 19, 2022 via a webinar. The City account with Meriwest for loan disbursement was finalized at the end of September 2022. On October 6, 2022, EPACANDO and the City held another informational webinar to seek more potential eligible applicants. The CalHome Program helps pay for plans and permits, necessary site upgrades, and construction costs. Table D shows the loan assistance amounts:

Table D
CalHome ADU/JADU Program
Junior
ADU
Attached
ADU
Detached
ADU
Maximum Award Total1 $70,000 $75,000 $80,000
Plans & Permits2
Reimbursement of plan design
costs and city application fees
$25,000 $25,000 $25,000
Necessary Site Upgrades3
Reimbursement of infrastructure
cost upgrades needed to
complete the project
$25,000 $25,000 $25,000
Construction Assistance
Reimbursement of construction
costs
$20,000 $25,000 $30,000
¹ Maximum assistance shall not exceed fifty percent (50%) of total project cost ² ³Up to $25,000 or 20% of project cost; whichever is smaller Since the program launch, EPACANDO has been working with several potential applicants who have reached the building phase and who are income-qualified.

EPACANDO has worked with over 77 East Palo Alto households through its “CANDO ADU” program and identified a pipeline of potential CalHome applicants, has assisted over 16 potential CalHome applicants in identifying pre-qualification, has successfully pre-qualified five households, and is currently working with four pre-qualified households. One household’s application will proceed to Merwiest for underwriting, pending a building permit. The second household that was going to proceed to Meriwest underwriting dropped out due to family issues unrelated to the program. There are also three other households awaiting Building permits before taking the next step.

The majority of applicants began with code enforcement cases for unpermitted second units or other conditions, and are working with City Code Enforcement staff on corrective measures, or working on getting their units to meet the planning requirements. These conditions do not preclude the owner from pursuing the CalHome Program, but rather, has introduced a level of complexity that challenged City staff.

Knowing the universe of CalHome Program applicants and their overlap with code enforcement issues has led the City to consider other ways to support rehabilitation/repairs and formalize a City legalization program through development code and design review changes.

A second challenge that EPACANDO and the City have encountered is incomequalifying residents. Pre-qualification barriers include: being over-income; having a high

9.1 Packet Pg. 108
debt-to-income ratio; having a high loan-to-value ratio; and lacking the primary financing needed to build the ADU or JADU. City timelines and fees have served as a disincentive for potential CalHome applicants.

Additional Financial Incentives Needed
Staff conducted initial research on cities that have waived or reduced permit processing fees for ADUs. Table E lists jurisdictions such as Milpitas, Dublin, Fremont, County of Marin, City of San Diego, Encinitas, Vista, and San Diego County that have adopted either fee waivers or fee reductions to incentivize the construction of ADU’s. These fee approaches reduce an impediment to providing lower-income and “missing middle” affordable housing opportunities. “Missing middle” affordable housing is moderateincome housing consisting of multi-unit or clustered housing types compatible in scale with single-family homes that help meet the growing housing needs.

Table E
Permit Processing Fee Waivers and Reductions for Selected Cities Jurisdiction Fee Policy
Milpitas Zero Permit Fees for all ADUs. Paid through ARPA (American Rescue Plan Funding).

Dublin Plan check and permit fee waiver for 750 sf or less and if greater than 750 sf w/ deed-restricted.

Fremont Pre-approved ADU program and the plan check fees are fixed at $1000.

County of Marin Incentives varying on renter’s income level.

City of San Diego Low Income Construction Financing Program.

Encinitas All development and services fees are waived.

Vista Fees are waived if certain conditions are met.

San Diego County Pre-approved ADU Program. Fees waived.

2. Waiver or Reduction of Development Impact Fees
In addition to permit processing fees, the City also collects development impact fees to fund capital infrastructure project or public facilities costs attributable to development impacts. These impact fees are substantial and can present a formidable obstacle for construction of ADUs. Development impact fees are typically due at the time of building permit issuance. The legal requirements for enactment of an impact fee program are set forth in Government Code Sections §66000 - 66025 (the “Mitigation Fee Act”), commonly referred to as AB 1600. Waiver or reducing impact fees would be a decision to subsidize the cost for infrastructure costs attributed to these projects to achieve a City policy objective.

In July 2020, the City Council adopted Resolution No. 108-2020, the first major revision of the City’s Comprehensive Fee Schedule, effective September 20, 2020.

Development impact fees are adopted separately from user and regulatory fees and are generally amended annually by the change in the Construction Cost Index, or CCI, published by Engineering News Record. Since 2020, the City’s development impact fees have risen annually by the CCI amount. Most recently, in FY 2022-23, development impact fees increased by 8.9%, in accordance with CCI. The authorizing

9.1 Packet Pg. 109
Municipal Code section and resolution adopting each fee is summarized in Table F.

Table F
Authorizing Municipal Code and Resolution by Fee Type
Table G shows the types of development projects subject to each of the development impact fees that apply to residential projects in FY 2022-23. It should be noted that state law exempts development impact fees for ADUs less than 750 sf in size and the City’s does not impose impact fees on attached ADUs, so the ADU fees listed below only apply to detached ADUs exceeding 750 sf. Additionally, ADUs fees are set based on a proportion of the fees charged for new single-family dwellings.

9.1 Packet Pg. 110
Table G
Development Impact Fees for Residential Projects (FY 2022-23)

The City Council can consider waiving or reducing the development impact fees for detached ADUs over 750 square feet to reduce the financial barrier for producing these types of ADUs. If this is an option the City Council would like to explore, staff would evaluate possible approaches and contact surrounding cities to compare the impact fees assessed on ADUs for possible guidance.

3. Affordable Housing Deed Restriction
While ADUs are recognized as providing a good option for affordable housing, it does not guarantee that an ADU will be offered at an affordable rent or that the ADU will be available as a rental unit. Homeowners may choose to build an ADU to create more living space for an extended or growing family without the intent of generating income from the unit.

Policy discussions have included offering financial incentives if a homeowner, non-profit organization, or other entity is willing to record a deed restriction on a property to maintain an ADU as an affordable rental or ownership unit for a defined time period.

Discussions have included targeting these units for veterans, disabled individuals, atrisk youths, unhoused persons, or other special needs populations. Incentives could include waiving both permit processing fees and development impact fees.

In addition to the existing CalHome ADU/JADU Loan Program that is administered by EPACANDO, additional financial incentives through grants or loans could be considered to assist in funding the design and construction of ADUs. The total cost to design and construct an ADU can easily exceed $250,000, and the $80,000 loan limit, while sizable, is still insufficient for many homeowners. Local funds could be considered for

9.1 Packet Pg. 111
supplemental financing such as Measure HH or Measure O funds, or the City could explore funding availability from state housing programs.

Next Steps
Based on City Council discussion and direction on the options outlined in this staff report, staff will draft a work program and recommendations that could include zoning amendments, development streamlining measures, and financial incentives to facilitate the construction of ADUs consistent with the latest state legislation where applicable. Community input will be sought, and recommendations will be presented to the Planning Commission before presenting to the City Council for consideration.

Questions for the City Council

1. Does the City Council support the relaxation of zoning standards particularly pertaining to reduction of side and rear setbacks, but also including flexibility or exceptions to open space, driveways, or other standards to reduce zoning impediments for facilitating the construction of ADUs?

2. Does the City Council support development streamlining options for review and approval of ADU applications, such as consolidation of Planning and Building review, pre-approval of ADU model plans, or third-party design and permit assistance?

3. Does the City Council support offering financial incentives and assistance for constructing ADUs, such as waiver or reduction of permit processing fees or development impact fees, or financial assistance for ADUs which may include the recordation of a deed restriction?

4. What other options should be considered for facilitating or promoting the production of ADUs in the City?
Fiscal Impact
There is no fiscal impact with the items described in this staff report. If City Council wishes to explore the options of consolidating Planning and Building processes, and of waiving or reducing Building fees, there may be a reduction in revenue generated from fees.

Environmental
The items described in this staff report are not considered a project under the provisions of the California Environmental Quality Act (CEQA).

Attachments

9.1 Packet Pg. 112
A. Chronology of State Legislations on ADUs (2016-2022) B. Past Community Engagement on ADUs
C. ADU Approvals from 2018-2022

9.1 Packet Pg. 113
Attachment A
Chronology of State Legislation on ADUs (2016 – 2022)
State ADU Legislation Passed in 2016
On September 27, 2016, Governor Brown signed Senate Bill 1069 (“SB 1069”) and Assembly Bill 2299 (“AB 2299”), amending Section 65852.2 of the Government Code.

Both bills reduced local authority to regulate ADUs, requiring that ADUs be ministerially approved. SB 1069 and AB 2299 became effective January 1, 2017.

State ADU Legislations Passed in 2019
On October 9, 2019, Governor Newson signed SB 131, AB 682, and AB 8813, amending Sections 65852.2 and 65852.22 of the Government Code, effective January 1, 2020. These new provisions further reduced local authority to regulate ADUs and mandate that local jurisdictions allow the creation of ADUs, including Junior Accessory Dwelling Units (JADUs), in accordance with specified standards and conditions with the statutes. Local agencies that have not adopted an ordinance compliant with Government Code Sections 65852.2 and 65852.22 are required to default to the standards specified in state law for permitting ADUs and JADUs.

SB 13, AB 68, and AB 881 reduce barriers to ADU approval and construction by further streamlining the process and limiting development standards and fees. This reflects the Legislature’s and Governor’s position that ADUs are an important part of the solution to the housing crisis. The changes include the following:
• Prohibits a minimum lot size.
• Requires approval of ADUs in multifamily zoning districts and within existing garages.
• Prohibits requirements for owner occupancy until 2025. • Requires cities to allow a minimum sized 800 square-foot ADU with four-foot setbacks.
• Prohibits cities from requiring replacement off-street parking if the covered parking is converted to an ADU.
• Requires a delay of enforcement of building code violations in an ADU for five years unless necessary to protect health and safety.
• Requires decisions on ministerial ADU applications within 60 days (from 120 days previously).
• Maximum size for ADUs cannot be less than 850 square feet for one bedroom and 1,000 square feet for two-bedroom units.
• Jurisdictions must now allow JADUs.
• A site can now have one ADU and one JADU by right if standards are met. • Jurisdictions cannot require corrections to nonconforming zoning conditions.

As a result of the most recent legislation, the number of eligible parcels for construction of an ADU or JADU within the City has been increased from approximately 2,400 to 4,150 square feet (“sq ft”) in areas zoned to allow residential, according to the analysis provided by the ADU Initiative based on the City’s GIS database. Additionally, more

9.1.a
Packet Pg. 114 Attachment: Chronology of State Legislations on ADUs (2016-2022) (2486 : Discussion of Possible Zoning Amendments and Other Measures to ADUs can be developed in mixed-use zones where multiple family residential uses are allowed.

State ADU Legislations Effective as of 2021
After the 2019 updates, the California State Legislature passed AB 31824, which was intended as a clean-up bill for SB 13, AB 68, and AB 881, and took effect on January 1, 2021. The summary of the changes from AB 3182 are provided below:
• An owner of a separate interest in a common interest development (i.e., homeowners associations) shall not prohibit rentals at all, no matter when the governing documents were adopted.
• Local agencies shall act upon the completed application within 60 days, otherwise the application shall be deemed approved.
• On a residential property, where a JADU would be allowed, an ADU also is allowed.

As AB 3182 provides clarity and not substantive changes, staff recommended, and the Council adopted (on November 17, 2020) the third requirement in the current ADU Ordinance Section 18.96.030(N)(1).

State ADU Legislation Passed in 2022
On September 28, 2022, Governor Gavin Newsom signed SB 897, a “final” ADU bill to help homeowners construct ADUs by removing unnecessary barriers that hinder development. The salient updates occasioned by the bill are summarized (from the Legislative Counsel’s Digest on Senate Bill 897, Chapter 664 published on September 29, 2022) in the Tables 1a, 1b, and 1c below:

9.1.a
Packet Pg. 115 Attachment: Chronology of State Legislations on ADUs (2016-2022) (2486 : Discussion of Possible Zoning Amendments and Other Measures to Table 1a. SB 897 Changes to ADU Legislation, Part I
Table 1b. SB 897 Changes to ADU Legislation, Part II

9.1.a
Packet Pg. 116 Attachment: Chronology of State Legislations on ADUs (2016-2022) (2486 : Discussion of Possible Zoning Amendments and Other Measures to Table 1c. SB 897 Changes to ADU Legislation, Part III

9.1.a
Packet Pg. 117 Attachment: Chronology of State Legislations on ADUs (2016-2022) (2486 : Discussion of Possible Zoning Amendments and Other Measures to Attachment B
Past Community Engagement Efforts on ADUs
Past Community Engagement on ADUs
In 2013, the City was approached by residents organized by faith-based leaders to develop fairer Accessory Dwelling Unit (“ADU”) laws. The City responded and enlisted Peninsula Conflict Resolution Center to facilitate multi-lingual community study sessions. The following is a summary of the City’s community engagement efforts.

Faith Community White Paper on ADUs
On October 18, 2016, because of increased code enforcement activity that caused many families to be displaced, faith community leaders consisting of Faith in Action Bay Area, Project Sentinel, Tokaikolo Church, Faith Missionary Baptist Church and St.

Francis of Assisi came together and presented a community white paper on legalizing ADUs in East Palo Alto as a vision for long-term solution. The white paper provided short-term solutions such as a moratorium on “red tagging” for any unit other than those identified as posing a health and safety threat, retroactive protections for residents under eviction notice, and 30- and 60-day notices for imminent hazard rather than 10- day notices that provided limited time for tenants to vacate the property due to unsafe conditions. The white paper also provided long-term solutions such as an amnesty period that would allow landlords to come out of the shadows and get help legalizing their units with reduced fees to help them comply with any deficiencies in their ADUs, recommendations for a task force, and for community education and communication, among other things.

Second Unit Task Force Recommendations
In November 2019, the East Palo Alto Second Unit Task Force (“Task Force”) that resulted from faith leaders’ recommendations provided a report on further strategies the City could adopt to address ADU legalization and tenant displacement issues. Task Force members consisted of Faith in Action members, Rebuilding Together Peninsula members, two City Council members, two Planning Commission members, a Menlo Park Fire Protection District member, a Community Legal Services attorney, staff from the San Mateo County Department of Housing and the San Mateo County Health System, and several City Council-appointed residents. The Task Force's ten recommended key strategies included:

1. Outreach Campaign – multilingual community outreach for tenants who live in unpermitted units and are subject to citation for code violation.

2. Support System – case managers who can provide rapid response assistance to landlords and tenants to prevent tenants from having to leave.

9.1.b
Packet Pg. 118 Attachment: Past Community Engagement on ADUs (2486 : Discussion of Possible Zoning Amendments and Other Measures to Incentivize the

3. Amnesty Program – that provides homeowners with a scope of work for minimum health and safety critical issues to address and incentivizes landlords in coming forward.

4. Tenant Protections – the suspension of code enforcement during the legalization process.

5. Temporary Housing – master leasing, home sharing, and other shelters for temporary relocation assistance.

6. ADU Accelerator – streamlining procedures on both sides of the permit counter.

7. Regulatory Report – addressing additional policy barriers beyond state reports.

8. Vehicle Management – increased front yard parking, residential parking permit, shared parking, and improved transit and transit-oriented development to decrease parking issues.

9. Workforce Development – to train the next generation of City and support staff.

10.Financial Resources – including creative financing instruments to incentivize deedrestricting affordability.

The following Task Force diagram illustrates the challenges homeowners with ADUs and ADU tenants face, the strategies that can help address these challenges, and the desired outcomes for these homeowners and tenants:

9.1.b
Packet Pg. 119 Attachment: Past Community Engagement on ADUs (2486 : Discussion of Possible Zoning Amendments and Other Measures to Incentivize the ADU Working Group Engagement
The culmination of the Task Force in November 2019 created the inception of a working group (“ADU Working Group”) consisting of ADU professionals, including technical assistance providers and community-based organizations, and City staff. Today, the working group consists of the City of East Palo Alto, City Systems, EPACANDO, and Soup. The working group previously also consisted of Faith in Action and Rebuilding Together.

The ADU Working Group is focused on implementing ADU laws, identifying challenges and barriers, and creating lessons learned. The working group has also worked on implementing the Task Force’s recommended strategies and identify ways to build more ADUs and legalize existing ADU structures to support East Palo Alto residents. Aside from working directly with potential homeowners interested in building an ADU, the working group has also participated on panels, provided presentations, and facilitated community discussions.

9.1.b
Packet Pg. 120 Attachment: Past Community Engagement on ADUs (2486 : Discussion of Possible Zoning Amendments and Other Measures to Incentivize the Attachment
C
ADU Approvals from 2018– 2022
Year Zoning Clearance Building Permit
201861
201978
2020 12 13
2021 26 30
2022 17 20
TOTAL 68 72

9.1.c
Packet Pg. 121 Attachment: ADU Approvals from 2018-2022 (2486 : Discussion of Possible Zoning Amendments and Other Measures to Incentivize the

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: December 6, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: James Colin, City Clerk
Bo-Kyoung Kim, Financial Services Manager
SUBJECT: City Council’s Proposed Schedule for 2023
Recommendation
By motion:

1. Accept the staff report on the City Council’s proposed meeting schedule for 2023;

2. Deliberate on the City Council’s proposed schedule for 2023;

3. Adopt the 2023 City Council meeting schedule; and

4. Adopt the 2023-24 Budget Calendar.

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
The City Council will consider the adoption of a schedule for City Council meetings for the calendar year of 2023. Council is being asked to review the schedule on Attachment 1 and to consider the adoption of the proposed schedule. Council may also be able to propose any desired changes.

The City Council will also consider the adoption of 2023-24 Budget schedule per City Ordinance Title 3, Chapter 3.08 “Budget Planning and Fiscal Procedures” providing rules and procedures for preparing and administering annual City budgets. Each annual period, the Council adopts an operating budget and typically updates the ten-year Capital Improvement Plan.

9.2 Packet Pg. 122
Regular Meetings
Regular meetings are held the first and third Tuesday’s of the month with the following exceptions:
• First Tuesday in January (3) – Due to the proximity of this meeting to the holiday break, City staff recommends cancellation of this meeting. • August Meetings (1 & 15) – August is the traditional recess for City Council and staff recommends we follow this tradition.

In December, the third Tuesday of the month is very close to the Christmas Holiday and staff is recommending a slight change to the Regular Schedule to provide staff and the City Council with additional time to enjoy the holidays. Therefore, staff recommends the second regular City Council meeting in December be held on Thursday, December 14, 2023 at 6:30 p.m..

Special Study Sessions
Special Study Sessions were designed so that Council can have ample to discuss specific topics that deal with future development, infrastructure, and City finances amongst other items.

In 2022, the City Council reserved six dates for Study Sessions and therefore was able to advance several key City initiatives.

As a result, staff is recommending that the City Council again schedule six dates for study sessions/Special Meetings, and one meeting for the City Council Reorganization, those dates being:
• January 23 @ 6:00 p.m.
• March 30 @ 6:00 p.m.
• April 25 @ 6:00 p.m.
• July 25 @ 6:00 p.m.
• September 26 @ 6:00 p.m.
• November 14 @ 6:00 p.m.
• December 12 @ 6:00 p.m. (Council Reorganization)
Special Budget Meetings
Similarly, to special Study Sessions, Budget Meetings are designed specifically so that City Council has ample time to review the City’s budget, which needs to be adopted by the June 20, 2023, Regular City Council meeting. Scheduling two meetings solely for the budget allows the City to adopt a budget before the end of the fiscal year. The special budget meetings are set for:
• Thursday, May 25 @ 6:00 p.m.
• Thursday, June 1 @ 6:00 p.m.

Furthermore, the publication dates of the Notice of public hearing are tentatively determined according to Ordinance 3.08.070 for the interested persons to be given an opportunity to be heard.

9.2 Packet Pg. 123
Strategic Planning Retreat
The Strategic Planning Retreat is a half-day event that in the past, was held on a Saturday in February. This year the Strategic Planning Retreat is proposed to be scheduled on Saturday, January 21, 2023 from 9:00 a.m. to 1:00 p.m.

Attachments
A. Proposed 2023 City Council Calendar
B. Proposed 2023-24 Budget Calendar

9.2 Packet Pg. 124
Su Mo Tu We Th Fr Sa JAN Su Mo Tu We Th Fr Sa APR
1 2 3 4 5 6 7 3 - Cancelled Meeting 1
8 9 10 11 12 13 14 10- Special City Council Meeting @6:00 pm 2 3 4 5 6 7 8 15 16 17 18 19 20 21 17- Regular Meeting @ 6:30 pm 9 10 11 12 13 14 15 22 23 24 25 26 27 28 21 - Strategic Planning Retreat @ 8:00 am 16 17 18 19 20 21 22 29 30 31 23 - Study Session @ 6:00 pm 23 24 25 26 27 28 29 30 Su Mo Tu We Th Fr Sa FEB Su Mo Tu We Th Fr Sa MAY
1 2 3 4 1 2 3 4 5 6
5 6 7 8 9 10 11 7 8 9 10 11 12 13
12 13 14 15 16 17 18 14 15 16 17 18 19 20
19 20 21 22 23 24 25 21 22 23 24 25 26 27
26 27 28 28 29 30 31
Su Mo Tu We Th Fr Sa MAR Su Mo Tu We Th Fr Sa JUN
1 2 3 4 1 2 3
5 6 7 8 9 10 11 4 5 6 7 8 9 10
12 13 14 15 16 17 18 11 12 13 14 15 16 17
19 20 21 22 23 24 25 18 19 20 21 22 23 24
26 27 28 29 30 31 25 26 27 28 29 30
2023
7 - Regular Meeting @ 6:30 pm
21 - Regular Meeting @ 6:30 pm

CITY COUNCIL MEETING

SCHEDULE
9 - Regular Meeting @ 6:30 pm
23 - Regular Meeting @ 6:30 pm
4 - Regular Meeting @ 6:30 pm
25 - Budget Meeting @ 6:00 pm
18 - Regular Meeting @ 6:30 pm
25 - Study Session @ 6:00 pm
6 - Regular Meeting @ 6:30 pm
1 - Budget Meeting @ 6:00 pm
20 - Regular Meeting @ 6:30 pm
7 - Regular Meeting @ 6:30 pm
21 - Regular Meeting @ 6:30 pm
30 - Study Session @ 6:00 pm

9.2.a
Packet Pg. 125 Attachment: Proposed 2023 City Council Calendar (2483 : City Council’s Proposed Schedule for 2023) Su Mo Tu We Th Fr Sa JUL Su Mo Tu We Th Fr Sa OCT
1 1 2 3 4 5 6 7
2 3 4 5 6 7 8 8 9 10 11 12 13 14
9 10 11 12 13 14 15 15 16 17 18 19 20 21
16 17 18 19 20 21 22 22 23 24 25 26 27 28
23 24 25 26 27 28 29 29 30 31
30 31
Su Mo Tu We Th Fr Sa AUG Su Mo Tu We Th Fr Sa NOV
1 2 3 4 5 1 2 3 4 7 - Regular Meeting @ 6:30 pm
6 7 8 9 10 11 12 5 6 7 8 9 10 11 14 - Study Session @ 6:00 pm 13 14 15 16 17 18 19 12 13 14 15 16 17 18 21 - Regular Meeting @ 6:30 pm 20 21 22 23 24 25 26 19 20 21 22 23 24 25
27 28 29 30 31 26 27 28 29 30
Su Mo Tu We Th Fr Sa SEP Su Mo Tu We Th Fr Sa DEC
1 2 1 2
3 4 5 6 7 8 9 3 4 5 6 7 8 9
10 11 12 13 14 15 16 10 11 12 13 14 15 16
17 18 19 20 21 22 23 17 18 19 20 21 22 23
24 25 26 27 28 29 30 24 25 26 27 28 29 30
31 5 - Regular Meeting @ 6:30 pm
12 - Reorg Meeting @ 6:00 pm
14 - Regular Meeting @ 6:30 pm
5 - Regular Meeting @ 6:30 pm
19 - Regular Meeting @ 6:30 pm
26 - Study Session @ 6:00 pm
15 - Cancelled Meeting (Council Recess)
4 - Regular Meeting @ 6:30 pm
18 - Regular Meeting @ 6:30 pm
25 - Study Session @ 6:00 pm

CITY COUNCIL MEETING

SCHEDULE
1 - Cancelled Meeting (Council Recess)
3 - Regular Meeting @ 6:30 pm
17 - Regular Meeting @ 6:30 pm
2023

9.2.a
Packet Pg. 126 Attachment: Proposed 2023 City Council Calendar (2483 : City Council’s Proposed Schedule for 2023) Item Action Date
Department FY 2023-2024 Budget Instruction Transmittal
Budget Instructions
Revenue and Expenditure Budget Workbook
Department FY 2023-24 Strategic Planning Instruction Transmittal Department Narratives, Performance Measures, Objectives 3 Departmental Budget Meetings: Finance Check-in Jan 17 - Jan 20, 2023 4 City Council Strategic Initiative Retreat January 21, 2023 5 Capital Project Budget Requests due to Public Works January 25, 2023 6 Transmitted Budget Workbook due to Finance January 25, 2022 7 Departmental Budget Meetings with Finance Feb 6 - 10, 2023 8 Planning Commission Meeting – FY 23-24 New, Proposed Capital Projects February 13, 2023 9 City Council Meeting: FY 2022-23 Mid-Year Budget Review February 21, 2023 10 Public Works Distribute Update of Ten-Year Capital Improvement Plan to Finance February 22, 2023
Departmental Narratives, Performance Measures, Objectives Due:

Updated Narratives, including description of organizational changes FY 22-23 Department Accomplishments
FY 23-24 Department Objectives
12 CMO/Department Proposed Budget Meetings March 13-17, 2023 13 Public Works & Transportation Commission Meeting – Review of FY 23-24 Capital Projects March 15, 2023
14 CITY MANAGER Budget Message April 18, 2023
15 Publish Public Hearing Notice for Session #1 and #2 May 12, 2023 16 Proposed FY 2023-2024 Operating Budget, 10-Year CIP Plan, Master Fee Schedule, GANN Limit Distributed May 15, 2023
17 Budget Study Session #1: Introduction & Overview of the Proposed Budget May 25, 2023*
18 Publish Public Hearing Notice for FY 2023-2024 Budget, CIP Plan, Comprehensive Fees, Impact Fees Hearings May 29, 2023
19 Budget Study Session #2–Operating Department Budget Presentations, FY 2023-24 Capital Plan June 1, 2023*
20 Publish 2nd (5-days after first) Public Hearing Notice for FY 2023-2024 Budget, Comprehensive Fees, Impact Fees Hearings June 5, 2023 21 GANN Limit/Fee Schedules (CFS/Impact) available at EPA website June 9, 2023 Public Hearings and Adoption of:

FY 23-24 Annual City Operating Budget/ Successor Agency Budget Update on 10-Year CIP
Comprehensive/Impact Fee Schedules
FY 23-24 GANN Limit
* Special City Council Meeting
November 18, 2022
22 June 20, 2023
Office of the City Manager

OPERATING AND CAPITAL BUDGET CALENDAR
FISCAL YEAR 2023-2024
11 February 24, 2023
1 2 December 9, 2022

9.2.b
Packet Pg. 127 Attachment: Proposed 2023-24 Budget Calendar (2483 : City Council’s Proposed Schedule for 2023)

East Palo Alto City CouncilDecember 6, 2022

East Palo Alto City Council
December 6, 2022