Agenda packet — East Palo Alto City Council, June 20, 2023 (part 1 of 2)

East Palo Alto City Council June 20, 2023 Agenda Page 1 of 4

EAST PALO ALTO CITY COUNCIL

REGULAR MEETING AND JOINT SUCCESSOR
AGENCY BOARD SPECIAL *AMENDED AGENDA
June 20, 2023, 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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Pursuant to Government Code Section 54953(b)(1), Vice-Mayor Antonio Lopez will be participating via teleconference from the following location:
201 Shirley Canyon Road
Room 317
Olympic Valley, CA 96146
East Palo Alto City Council June 20, 2023 Agenda Page 2 of 4

1. CALL TO ORDER AND ROLL CALL

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

3. APPROVAL OF CONSENT CALENDAR

1. Professional Services Contract for NPDES Compliance Services Recommendation: Adopt a resolution authorizing the City Manager to execute a professional services contract with Stone Creek Environmental Consulting in a form approved by the City Attorney, in the amount not-to-exceed $132,880 per year for a period of three years to provide National Pollutant Discharge Elimination System (NPDES) compliance services for the City.

2. FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and Disposal
Recommendation: Adopt a resolution:

1. Accepting the annual Military Equipment report, and based thereon, finding that each type of Military Equipment that remains complies with the standards for approval set forth in Chapter 9.25 of the East Palo Alto Municipal Code through May 30, 2024, except as provided for herein;

2. Authorizing the City Manager to dispose of two (2) 40mm launchers through destruction;

3. Finding that the annual review pursuant to Subsection (D) of Chapter 9.25.030 of the Chapter 9.25 of the East Palo Alto Municipal Code is complete and no changes to said Chapter are required;

4. Directing staff to update any related departmental policy, including Policy No. 705 (Military Equipment), to conform with any changes directed by resolution.

3. Consideration of Granting Consent to The City of Burlingame to Form The San Francisco Peninsula Tourism Marketing District (SFPTMD) Recommendation: Adopt a resolution granting the City of Burlingame consent to include the City of East Palo Alto in the SFPTMD, for the formation of the SFPTMD and future renewals.

4. Monthly Cash Treasury Report for April 2023
Recommendation: Accept and file the Cash Treasury Report for the month of April 2023.

5. Minutes of the June 12, 2023 Meeting

4. CLOSED SESSION - NONE

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

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

East Palo Alto City Council June 20, 2023 Agenda Page 3 of 4

6. STAFF INFORMATIONAL REPORTS

1. East Palo Alto 2023 Community Survey Highlights
Recommendation: Receive a presentation on the East Palo Alto 2023 Community Survey Highlights.

7. SPECIAL PRESENTATIONS

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

BOARD SPECIAL MEETING

9. JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING

1. Adoption of Fiscal Year 2023-24 Successor Agency Budget Recommendation: Adopt a Resolution adopting the Fiscal Year 2023-24 Successor Agency Budget.

10. ADJOURN JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING and RECONVENE

CITY COUNCIL REGULAR MEETING

11. PUBLIC HEARINGS

1. FY2023-24 Budget Adoption
Recommendation: Adopt a Resolution adopting the Fiscal Year 2023-24 Budget

2. Establishing the Fiscal Year 2023-24 Appropriation Limit Recommendation: Adopt a Resolution establishing the FY 2023-24 Appropriation Limit of $39,354,338

3. Inclusionary Housing Alternative Compliance Option for 1201 Runnymede (APN 063-271-090)
Recommendation: Conduct a public hearing and adopt a Resolution:

18.37.080 of the East Palo Alto Municipal Code in that it provides as many or more inclusionary units at the same or lower income levels or will otherwise provide greater public benefit than would provision of the inclusionary units on-site;

2. Finding that the project does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment;

3. Authorizing the City Manager to execute all required documents, in a form approved by the City Attorney, associated with the Inclusionary Housing requirements of the Project.

12. POLICY AND ACTION

1. Status of Business Discovery and Amnesty Program Related to Business Licenses Recommendation: Direct staff on the next steps in the Business Discovery and Compliance program.

East Palo Alto City Council June 20, 2023 Agenda Page 4 of 4

2. 2023 Southeast San Mateo Community-Based Transportation Plan Recommendation: Adopt a resolution supporting the 2023 Southeast San Mateo Community-Based Transportation Plan, subject to any potential changes.

13. COUNCIL REPORTS

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

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

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

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

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

POSTED: June 16, 2023
AMENDED: June 20, 2023
ATTEST:

James Colin
City Clerk
Future Meetings:

Meeting Date Time
Special Meeting July 6, 2023 6:30 p.m.

Regular Meeting July 18, 2023 6:30 p.m.

Study Session July 25, 2023 6:00 p.m.

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Batool Zaro, Associate Engineer
Humza Javed, Public Works Director
SUBJECT: Professional Services Contract for NPDES Compliance Services Recommendation
Adopt a resolution authorizing the City Manager to execute a professional services contract with Stone Creek Environmental Consulting in a form approved by the City Attorney, in the amount not-to-exceed $132,880 per year for a period of three years to provide National Pollutant Discharge Elimination System (NPDES) compliance services for the City.

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

Promote Health and Public Safety
Background
The City of East Palo Alto is subject to the requirements of the San Francisco Bay Regional Water Quality Control Board (SFBRWQCB) Municipal Regional Stormwater National Pollutant Discharge Elimination System (NPDES) Permit Order No. R2-2022-0018. NPDES Permit No.

CAS612008 (MRP 3.0).

The City engages in collaborative efforts to implement MRP 3.0 through the San Mateo Countywide Water Pollution Prevention Program (SMCWPPP). The SMCWPPP was established in 1990 to reduce the pollution carried by stormwater into local creeks, San Francisco Bay and the Pacific Ocean. The SMCWPPP operates with a Board, various committees and workgroups to plan and implement water quality compliance projects for compliance with MRP 3.0. Participation in this collaborative effort is essential to the City’s compliance with MRP 3.0.

Analysis

3.1 Packet Pg. 5
The Public Works Department is responsible for complying with MRP 3.0 and has continued to implement the various programs in order to remain in compliance with MRP 3.0. For the past two years, the City has been unable to maintain persistent staffing to implement MRP 3.0 due to staff being on and off of leave. Because of the incumbents right to return to work, the City cannot recruit a new staff member to fill this role without adding an additional full-time equivalent (FTE) position. Thus, the City seeks to hire a contractor to support and fulfill the vital responsibilities of the NPDES program. A number of other cities in the Bay Area have similar contracts with consultants to run their NPDES programs.

Accordingly, the City issued a request for qualifications (RFQ) on May 18, 2023 with a deadline to receive proposals by June 2, 2023. The engineering staff published the RFQ on the City website and forwarded the RFQ to multiple firms. The City received one (1) proposal from Stone Creek Environmental Consulting (Stone Creek).

The proposal was reviewed by engineering staff. Stone Creek meets all the qualifications of the proposal and is being recommended for selection. Staff negotiated the annual contract cost down from $149,975 to $132,880.

Stone Creek is a leading firm providing stormwater management services, specializing in municipal stormwater management, permit compliance, and reporting. The key personnel with Stone Creek Environmental Consultant are assigned to work on this contract for East Palo Alto. These staff members have prior experience working with the State of California North Coast Regional Water Quality Control Board with primary responsibilities including managing the National Pollutant Discharge Elimination System (NPDES) stormwater program. The staff are active participants in State-Wide Stormwater Initiatives and Program Development as a member of the California Stormwater Quality Association, member of the Center for Wastewater Protection, Participant in the Bay Area Stormwater Manager Phase II Permit Subcommittees, Bay Area Municipal Stormwater Collaborative and are Certified Professional in Municipal Storm Water Management through EnviroCert International.

Through this contract, Stone Creek would assist the City with planning and implementation of tasks necessary for compliance with MRP 3.0, including utilizing and participating in SMCWPPP committees and work groups as City representatives. The scope of the contract includes but is not limited to:
• Project Management
• Compliance Collaboration and Coordination
• Annual Reporting
• Green Infrastructure Program
• Business Stormwater Inspection Plan
• Construction Site Inspections for BMPs
• New Development O&M Inspections
• Long term Trash Reduction Plan
• NPDES Compliance Related Professional Support Services The scope of work is included as Attachment 2. Upon contract award and execution, Stone Creek will review the City’s existing program and expedite completion of the NPDES annual report which is due to the SFBRWQCB by September 30, 2023.

3.1 Packet Pg. 6
Fiscal Impact
Staff recommends utilizing salary and other budget savings which are projected to be approximately $200K in the FY2022-23 Environmental Services budget in the General Fund and NPDES Fund. No additional appropriation is required. .

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.

Environmental
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301 (Repair, maintenance and/or minor alteration of an existing facility) and Sections 15303 (construction and location of limited numbers of new, small facilities or structures).

Attachments

1. Resolution

2. Proposal

3. EPA Standard Agreement Contractor and Professional Services Agreement

3.1 Packet Pg. 7
Resolution No. XX-2023 1 of 2
RESOLUTION NO. XX – 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES CONTRACT

WITH STONE CREEK ENVIRONMENTAL CONSULTING IN A FORM APPROVED BY THE CITY ATTORNEY, IN AN AMOUNT NOT-TO-EXCEED $132,880 PER YEAR FOR A TERM OF THREE

YEARS TO PROVIDE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES)

COMPLIANCE SERVICES FOR THE CITY
WHEREAS, the City is subject to the requirements of the San Francisco Bay Regional Water Quality Control Board (SFBRWQCB) Municipal Regional Stormwater NPDES Permit Order No. R2- 2022-0018, NPDES Permit No. CAS612008 (MRP 3.0); and
WHEREAS, the City engages in collaborative efforts to implement MRP 3.0 through the San Mateo Countywide Water Pollution Prevention Program (SWCWPPP); and WHEREAS, the SMCWPPP operates with a Board, various committees and workgroups to plan and implement water quality compliance projects for compliance with the MRP 3.0, and participation in this collaborative effort is essential to the City’s compliance with MRP 3.0; and WHEREAS, the City issued a request for qualifications (RFQ) on May 18, 2023, and the City received one (1) proposal from Stone Creek Consulting on June 2, 2023; and WHEREAS, staff negotiated the cost of these services to $132,880 per year for a term of three years; and
WHEREAS, Stone Creek is a qualified firm and is able to provide the requested services to the City.

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

1. Finds the foregoing recitals are true and correct and incorporated by this reference into this action; and

2. Authorizes the City Manager to execute a professional services contract with Stone Creek Environmental Consulting, in a form approved by the City Attorney, in an amount not-toexceed $132,880 per year for a term of three years to provide National Pollutant Discharge Elimination System (NPDES) compliance services for the City.

PASSED AND ADOPTED this 20th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

3.1.a
Packet Pg. 8
Attachment: Resolution (2702 : Professional Services Contract for NPDES Compliance Services) Resolution No. XX
-20232 of 2
ABSTAIN:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney

3.1.a
Packet Pg. 9
Attachment: Resolution (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
June 1, 2023
Mr. Anwar Mirza, M.S., P.E.

City of East Palo Alto
Public Works Department
1960 Tale Street
East Palo Alto, CA 94303
Dear Mr. Mirza,
Subject: City of East Palo Alto – Statement of Qualifications for Stormwater – NPDES Program Compliance Services
Stone Creek Environmental Consulting, LLC (Stone Creek) is pleased to present this competitive bid package to support the City of East Palo Alto (City) with implementation of their stormwater – NPDES program. Stone Creek is a leading firm providing stormwater management services, specializing in municipal stormwater management, permit compliance, and reporting. Colleen Hunt, owner, brings over 23 years of experience in environmental regulatory compliance. Stone Creek is a stable firm, with the potential for growth. Stone Creek is fully committed to providing the requested scope of services to the City.

Enclosed is our proposal. If selected, I will be the principal in charge, as well as the project manager. I am the company’s officer authorized to contractually bind the firm and to negotiate a contract with the City.

My contact information is in the header.

We are confident you will find a complete package, providing all the details necessary to demonstrate our qualifications, experience, and expertise in municipal stormwater management. We look forward to working with you to assist with implementation of the City’s stormwater program.

We recognize Stone Creek is a small, newly formed company. I provide assurance our team is highly qualified to provide the proposed scope of work and is dedicated to high quality work to the satisfaction of every client.

I look forward to working with your team.

Sincerely,
Colleen Hunt, CPMSM
Owner

3.1.b
Packet Pg. 10
Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
TABLE OF CONTENTS
1 Cover Letter ............................................................................................................................. 1 2 Workplan and Approach .......................................................................................................... 2 3 Key Personnel Background ..................................................................................................... 9 4 Team Experience and References .......................................................................................... 14 5 Cost Proposal and Staff Allocation ....................................................................................... 19

3.1.b
Packet Pg. 11
Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
June 1, 2023
Stone Creek Environmental Consulting (Stone Creek) was formed in 2020 as a Limited Liability Corporation. Colleen Hunt is the sole Managing Member of the LLC and is the entity authorized to sign contractual agreements.

As the sole Managing Member of the LLC, I, Colleen Hunt, find the following to be true:

The requirements as written in the RFQ, it's enclosures, and all addenda, have been thoroughly reviewed and Stone Creek has conducted all due diligence necessary to confirm material facts upon which the SOQ is based.

Stone Creek will not receive any additional compensation that is not included in the Cost Schedule.

The validity of the SOQ contents including proposed Cost Proposal are valid for a period of 90 days.

Subcontractors will not be used to fulfill this contract.

Stone Creek including all individuals who will perform work 4 stone Creek are free from any conflict of interest.

Stone Creek has reviewed the City’s legal documents and are accepted without exception.

As the Managing Member of Stone Creek Environmental Consulting I am empowered to bind Stone Creek to the provisions of this RFQ and any contract awarded pursuant to it.

Sincerely,
Colleen Hunt, CPMSM
Managing Member
1 3.1.b
Packet Pg. 12
Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
Workplan
Project Background
The City of East Palo Alto (City) is subject to the requirements of the San Francisco Bay Regional Water Quality Control Board (SFBRWQCB) Municipal Regional Stormwater NPDES Permit Order No. R2-2022- 0018, NPDES Permit No. CAS612008 (MRP 3.0). The permit was adopted on May 11, 2022 and went into effect July 1, 2022. Requirements are numerous and prescriptive. Some of the most relevant implementation measures include:
 C.2. MUNICIPAL OPERATIONS
 C.3. NEW DEVELOPMENT AND

REDEVELOPMENT
 C.4.INDUSTRIAL AND COMMERCIAL

SITE CONTROLS
 C.5. ILLICIT DISCHARGE DETECTION

AND ELIMINATION
 C.6. CONSTRUCTION SITE CONTROL
 C.7. PUBLIC INFORMATION AND

OUTREACH
 C.8. WATER QUALITY MONITORING
 C.9. PESTICIDES TOXICTY CONTROL
 C.10. TRASH LOAD REDUCTION
 C.11 MERCURY CONTROLS
 C.12. POLYCHLORINATED BIPHENYLS

CONTROLS
 C.13. COPPER CONTROLS
 C.14. BACTERIA CONTROL
 C.22 ANNUAL REPORTS
The City engages in collaborative efforts to implement MRP 3.0 through the San Mateo Countywide Water Pollution Prevention Program (SMCWPPP). The SMCWPPP was established in 1990 to reduce the pollution carried by stormwater into local creaks, San Francisco Bay and the Pacific Ocean. The SMCWPPP is a partnership of the City/County Association of Governments (C/CAG) and 22 municipal agencies in San Mateo County. The SMCWPPP operates with a Board, various committees and workgroups to plan and implement water quality compliance projects for compliance with the MRP 3.0.

Participation in this collaborative effort is essential to the City’s compliance with MRP 3.0.

The Scope of Work (SOW) for this RFQ is to assist the City with planning and implementation of tasks necessary for compliance with the MRP 3.0, including utilizing and participating in SMCWPPP committees and work groups.

Scope of Work
In accordance with the RFQ, the following SOW outlines the tasks and approach proposed by Stone Creek.

Task 1 – Program Management
Under this task, Stone Creek will coordinate project administration with the City. Project administration will include, but not be limited to:
2 3.1.b
Packet Pg. 13
Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
• A kick-off meeting to discuss the project tasks, roles and responsibilities and schedule. • Quarterly meetings with the City to discuss project tasks, task status, present findings and information, discuss recommendations, and make key decisions for ongoing task management and compliance.
• Develop, track, and meet budget controls.
• Develop a task plan and schedule.
• Provide monthly invoices, including a summary of work performed during the invoicing period.

Deliverables: Meeting agendas, meeting notes, budget, project schedule and invoices.

Task 2. Compliance Collaboration and Coordination
As a member of the SMCWPPP, this task is to assist the City with collaboration and coordination with this group. This includes meeting attendance, review and comment on documents developed by SMCWPPP, and general coordination with collaborative implementation measures of MRP 3.0. Table 1 includes a list of all SMCWPPP committees. At the direction of the City, Stone Creek is available to participate in SMCWPPP committees. Table 1 also includes the anticipated number of meetings each committee will host during the fiscal year. This estimate is built off the average number of meetings reported for previous fiscal years. The proposed budget and level of effort assumes Stone Creek will participate in most subcommittee meetings.

Committee Assumed Number of Meetings Per Year
Technical Advisory Committee 4
New Development Subcommittee 4
Commercial/Industrial/Illicit Discharge 4
Watershed Monitoring Committee 1
Litter Workgroup 2
Trash Subcommittee 4
Stormwater Committee 12
Municipal Maintenance Subcommittee 2
Pest Management and Parks Subcommittee 2
Budget assumes Other Direct Costs (ODC) of $500 for travel costs for in-person meetings.

Deliverables: Meeting notes. Comments on draft documents.

Task 3. Annual Report
The City must submit an annual report to the SFBRWQCB summarizing all activities conducted during each fiscal year. The annual report is a template form that is completed to provide the required 3 3.1.b
Packet Pg. 14
Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
information to demonstrate compliance with the MRP. Under this task, Stone Creek will assist with the preparation of the FY 2022/2023 annual report. This will include meeting with City staff to discuss compliance status of requirements, filling out the report template, identifying areas of the form for City staff to populate, and quality assurance review. Stone Creek anticipates having a draft plan for City review by September 15, 2023. The City will be responsible for finalizing the report and submitting to the SFBRWQCB.

Deliverables: Draft Annual Report.

Task 4. Green Infrastructure Program
Section C.3.j. requires the City to continue to implement their Green Infrastructure Plan (GI Plan). The GI Plan is intended to serve as an implementation guide and reporting tool during the permit term (and beyond) to provide reasonable assurance that Total Maximum Daily Load (TMDL) wasteload allocations will be met. The main objective of the GI Plan is to identify projects that, over the long-term, will shift storm drain infrastructure from “gray” to “green.” In 2020, the City adopted a GI Plan, outlining the approach to implementing green infrastructure projects. Elements of the GI Plan include a list of projects and a prioritization process, including both jurisdictional and regional projects, project tracking and mapping approach, as well as sizing and design guidance.

For the new permit term, MRP 3.0 requires the City to implement or cause to be implemented, green infrastructure project(s) treating impervious surface within its jurisdiction. By June 30, 2027 the City is subject to treating no less than 0.2 acres, or up to 1.76 acres as a participant in the implementation of projects on a regional scale.

Under this task, Stone Creek is available to assist the City with the implementation of the Green Infrastructure Program, including reviewing the GI Plan to assist and provide recommendations on implementation. This may include reviewing the current status of the GI plan implementation, review current project status of both projects in progresses and potential projects for future implementation, reviewing and tracking regional project implementation, provide recommendations for meeting MRP 3.0 compliance milestones, and assisting with tracking mapping requirements.

Deliverable: TBD based on client direction.

Task 5. Business Stormwater Inspection Plan
Section C.4. of MRP 3.0 requires the City to implement an industrial and commercial site control program at all sites that could reasonably be considered to cause or contribute to pollution of stormwater runoff. This includes the implementation of an Industrial and Commercial Business Inspection Plan (BIP). This plan serves to categorize commercial and industrial sites by pollutant threat to water quality and identifies inspection frequency, protocols to change inspection frequency based on site performance, and add and remove sites as businesses open and close. 4 3.1.b
Packet Pg. 15
Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
Under this task, Stone Creek is available to review the existing BIP, provide recommendations for updating the BIP, update as needed, conduct and track site inspections, conduct follow-up inspections as needed, document inspections, findings and corrective actions, and provide recommendations for enforcement. This task assumes 75 inspections for FY 2023/2024 based on the number of inspections conducted in FY 2021/2022. Budget and level of effort assumes 3 hours per facility, including scheduling, inspections, and reporting. This task also assumes the City will provide the inventory of facilities needing inspections.

Budget assumes ODC of $1,200 for travel costs for inspections.

Deliverable: Inspection Reports.

Task 6. Construction Site Inspections
Section C.6. of MRP 3.0 requires the City to implement a construction site inspection and control program at all construction sites to prevent construction site discharges of pollutants into storm drains.

This includes monthly wet season inspections of all construction sites disturbing more than one acre of land; all hillside projects disturbing greater than or equal to 5,000 square feet; and high priority sites determined by the City or the SFBRWQCB as having significant threats to water quality.

Under this task, Stone Creek is available to conduct monthly wet season construction site inspections.

Wet season is defined as October thru April. Inspections will be conducted in accordance with MRP 3.0 section C.6.e.ii.3 Contents of Inspections including a focus on the adequacy and effectiveness of sitespecific BMPs. All inspections will be recorded on an inspection form and tracked in an electronic database. Stone Creek will issue verbal corrective actions for minor deficiencies and refer major deficiencies to the City for formal enforcement. The proposed budget and level of effort are based on four projects inspected monthly for the entire wet season, for a total of 28 inspections. Budget and level of effort assume 4 hours per inspection, including preparation, scheduling, inspections, and reporting.

This task assumes the City will provide an inventory of projects needing inspections.

Budget assumes ODC of $1,400 for travel costs for inspections.

Deliverable: Inspection Reports.

Task 7. New Development O&M Inspections
Section C.3.h of MRP 3.0 requires the City to track the inventory of Regulated Projects with stormwater treatment and conduct operation and maintenance (O&M) inspections at completed projects. This includes inspections at the completion of each project to ensure approved plans were followed. O&M inspections are required to be conducted once every five years at each project, with an average of 20 percent of projects inspected each fiscal year.
5 3.1.b
Packet Pg. 16
Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
Under this task, Stone Creek will assist the City with conducting project completion inspections and O&M inspections. All inspections will be conducted in accordance with MRP 3.0 section C.6.e.ii. All inspections will be recorded on an inspection form and tracked in an electronic database. Findings of the inspections and recommendations for corrective actions will be summarized in a Technical Memorandum. Stone Creek is available to assist with issuing corrective action notifications and track maintenance compliance.

Based on the C.3. inventory reported in previous annual reports, the current inventory is 15 projects.

The current compliance status of O&M inspections is unknown. Under this task Stone Creek will work with the city to determine which projects need inspection during FY 2023/2024. The proposed budget and level of effort assumes the city will need assistance with conducting O&M inspections in compliance with MRP 3.0, which is 20% of the current inventory. Therefore, Stone Creek assumes four inspections will be required each fiscal year. Budget and level of effort assume 4 hours per inspection, including preparation, scheduling, inspections, and reporting.

Budget assumes ODC of $250 for travel costs for inspections.

Deliverable: Inspection Reports
Task 8. Long-term Trash Reduction Plan
Section C.10 of MRP 3.0 requires the City to implement trash load reduction control actions including mandatory minimum full trash capture systems to meet the goal of 100 percent trash capture or no adverse impact to receiving waters from trash by June 30, 2025. This includes an interim milestone of 90 percent reduction by June 30, 2023. To meet these requirements, the City is implementing a Long-Term Trash Load Reduction Plan. This approach includes installing, operating, and maintaining trash full capture systems, control measures other than trash full capture systems, and jurisdictional-wide source control actions. As reported in FY 2021/2022 Annual Report, the City trash load reduction is 89 percent.

Under this task, Stone Creek is available to assist the City with ongoing implementation of the LongTerm Trash Load Reduction Plan. Initially, Stone Creek would meet with the City to discuss the current status of trash load reduction and review the plan to determine actions planned to treat the remaining trash load to meet the full 100 percent load reduction. Stone Creek is available to provide recommendations for additional implementation of control measures to meet remaining requirements.

Additionally, Stone Creek is available to track progress toward 100 percent trash load reduction including progress On-land Visual Trash Assessments (OVTAs) to verify effectiveness of trash management actions or combination of actions other than full trash capture. OVTAs will be conducted according to MRP 3.0 section C.10.iii.b. This includes conducting OVTAs at randomly selected locations covering at least 10 percent of the trash management area’s street miles. The FY 2021/2022 reporting total street miles as 12.3. Therefore, approximately 1.3 miles of OVTAs would be conducted each fiscal year. Observations will be recorded on an inspection record and tracked electronically. If the City directs Stone Creek to conduct OVTAs, Stone Creek will conduct OVTAs at locations determined by the City. 6 3.1.b
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
Under this task Stone Creek is also available to track and calculate progress toward meeting the 100 percent trash load reduction requirement. Calculations will be conducted according to MRP 3.0 section C.10.b.iv. Percent Discharge Reduction.

Budget assumes ODC of $250 for travel costs for OVTAs.

Deliverables: OVTA Inspection Reports. Discharge Reduction Progress calculations.

Task 9. Bacteria TMDL Program
Section C.14 of MRP 3.0 includes requirements for bacteria control for impaired water bodies. Current requirements are applicable to specific Permittees subject to TMDL waste load allocations for adopted TMDLs. Based on our review of MRP 3.0 and the SFBRWQCB’s adopted TMDLs, the City is not currently subject to bacteria control requirements specific to a TMDL as described in section C.14. However, Stone Creek is available to assist the City with the development of a bacteria source control program, should the City determine a need to pursue a program or become subject to bacteria source control requirements at a future date.

Under this task, Stone Creek is available to assist the City with the development of a bacteria source control plan, aimed at assessing the potential for sources to contribute to bacteria in stormwater runoff.

Potential sources to assess include:
• Municipal operations
• Unsheltered persons
• Pets and livestock
• Sanitary sewage system cross connections
• Trash bins
Implementation of a bacteria source control program is a multi-year effort. For FY 2023/2024, the City’s first step would be to develop a workplan for conducting assessments of the above sources. Assessment procedures would generally include developing an inventory of potential source locations, conducting inspections of potential sources to make a visible assessment of conditions as they relate to generating and causing bacteria to be transported to surface waters. Specific objectives would be established with City staff to best direct the work. During the development of the workplan, Stone Creek would consult with the City to determine the need for water quality monitoring as a tool to assess source areas. This may include both wet weather and dry weather monitoring of outfalls and/or receiving water.

Other NPDES Compliance Related Professional Support Services In addition to the tasks outlined above, Stone Creek is available for a wide verity of services, including but not limited to:
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
[email protected]
707-318-9415
www.consultingstonecreek.com
• Staff NPDES permit training
• Low Impact Development plan review
• Plan and/or participate in outreach events
• General compliance determination
• Cost reporting assistance
The budget and level of effort for other support services is estimated with a lump sum price defined in the Cost Proposal as “optional services.” This figure was developed as a place-holder due to the nature of additional tasks being undefined. This figure can be negotiated prior to execution of the final contract.
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Colleen Hunt TechnicalProfessionalConsultant
Owner

Background and Experience
Education

Colleen Hunt has worked in the environmental regulatory field for 23 years, specializing in water quality and hazardous materials management. For 18 years Ms. Hunt was employed by the State of California at the North Coast Regional Water Quality Control Board. Her primary responsibility between 2012 and 2017 included managing the National Pollutant Discharge Elimination System (NPDES) stormwater program. For the past 6 years Ms. Hunt has continued her career in environmental regulatory management as a private consultant. Her knowledge of environmental regulations and requirements allows her to advise clients on direct compliance approaches leading to technical and cost‐effective solutions. Ms. Hunt has worked with dozens of municipalities on storm water permit compliance by providing program assessment, reporting, training, compliance determination, collaborative planning, program improvement and field inspections.

Stone Creek Environmental Consulting, Santa Rosa, California February 2020 to present
Company owner and technical consultant providing professional consulting services across multiple regulatory programs including stormwater management, hazardous material management,
wastewater, and drinking water.
 Manage client accounts including contract negotiations, budgets, and deliverables.
 Meet and confer with clients to discuss technical requirements and implementation strategies.
 Assess client water quality programs for compliance with permits including drinking water, wastewater, and stormwater NPDES requirements; provide recommendations and options for filling compliance gaps.
 Draft technical compliance plans for municipal storm water programs including storm water management plans, trash
implementation plans, facility pollution prevention plans, Total Maximum Daily Loads (TMDL) progress reports, annual reports, and monitoring reports.
2000 – B.S., Environmental
Studies Concentration in
Hazardous Materials
Management, Cum Laude,
Sonoma State University,
Rohnert Park, California
Certifications
Certified Professional in
Municipal Stormwater
Management No. 343
Professional
Affiliations
California Stormwater
Quality Association,
Member
Center for Watershed
Protection, Member
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services)  Plan and conduct Best Management Practices effectiveness assessments including sediment reduction studies, water conservation outreach, and integrated pest management.  Conduct inspections of facilities to determine if BMPs are effective and in compliance with permit requirements; inspection types include commercial and industrial facilities, low impact development BMPs, construction sites, industrial and commercial facilities and municipal facilities such as corporation yards. Includes reviewing erosion and sediment control plans and Low Impact Development (LID) plans and assessing sites for compliance with written submissions.
 Provide staff training on storm water permit components including illicit discharge detection and elimination, non‐storm water discharges, best management practices, integrated pest management, spill prevention and response, and rain‐ready preparedness.

ACTIVE PARTICIPANT IN STATE‐WIDE STORM WATER INITIATIVES AND PROGRAM DEVELOPMENT  Member of the California Stormwater Quality Association  Member of the Center for Watershed Protection
 Participant in the CASQA Phase II Permit Subcommittee  Participant in the Bay Area Storm Water Manager Phase II Permit Subcommittee  Participant in the Bay Area Municipal Stormwater Collaborative, past Co‐Chair  Certified Professional in Municipal Storm Water Management (#343) through EnviroCert International
10 3.1.b
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Luis G. Rivera, P.E. Registered Professional Civil Engineer BACKGROUND Education
Luis G. Rivera is a Professional Civil Engineer with 40 years of experience specializing in water pollution control and watershed protection and enhancement. He has been responsible for implementing environmental protection programs associated with waste water and storm water management, soil and groundwater remediation, fisheries restoration, agricultural activities, land development, and management of hazardous materials. Starting in 1978, Mr. Rivera managed regulatory programs for the U.S.

Environmental Protection Agency and in 1984 joined the California Regional Water Quality Control Board (RWQCB), North Coast Region.

He joined Uribe & Associates in 1998 where he managed the consulting firm’s municipal services unit. He rejoined the RWQCB in 2000 and was appointed as the Assistant Executive Officer for the North Coast Region in 2004. He retired from the RWQCB in December 2012. He joined Stone Creek Environmental Consulting in May 2020.

Experience
Stone Creek Environmental Consulting, Santa Rosa, California:

May 2020 to current
Responsible for quality assurance, Mr. Rivera reviews company work products associated with client regulatory compliance strategies, facility and construction site inspections and associated BMP effectiveness, permit compliance reports, program assessments, and hazardous material management activities.

As Assistant Executive Officer of the North Coast Regional Water Board, Mr. Rivera was chief-of-staff and supervised the senior engineers and environmental program managers for three divisions and all regulatory activities and all agency work products, including 1978 - Bachelor of Science,
Civil Engineering,
University of Puerto Rico at
Mayaguez
2006 - Harvard University,
John F. Kennedy School of
Government, Strategic
Management of Regulatory
and Enforcement Agencies,
Executive Education
Program
Registered Professional
Civil Engineer, California,
No.C35364
11 3.1.b
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) permitting, planning, standard-setting, and enforcement. He provided managerial guidance and administrative and budgetary direction for all Regional Board activities. He represented the Regional Board and testified before local agencies, municipal governments, and other state and federal agencies.

Mr. Rivera represented the Regional Board as a negotiator in litigation and testified as an expert witness in civil trials. He dealt extensively with the media and conducted public hearings throughout the North Coast Region.

During his tenure at the Regional Water Board Mr. Rivera supervised the implementation of surface and groundwater monitoring programs for compliance assurance at municipal and industrial wastewater treatment plants, municipal storm water systems, solid waste facilities, hazardous waste sites, geothermal operations, timber harvest plans, and highway construction.

Mr. Rivera was responsible for the preparation of environmental documents to fulfill the requirements of the California Environmental Quality Act (CEQA). He wrote and reviewed environmental documents, prepared summaries and recommendations, and conducted public hearings. Typical projects included expansions of wastewater treatment plants, establishment of solid waste disposal sites and transfer stations, and cleanup of toxic discharges affecting soils and groundwater.

Mr. Rivera authored revisions to the North Coast Water Quality Control Plan. He wrote the supporting documents, testified at Regional Water Board hearings, made presentations to stakeholders, and responded to comments. His work resulted in the adoption by the Regional Water Board of a revised Basin Plan that contained provisions and implementation schedules mandating advanced wastewater treatment for all discharges of municipal wastewater within the Russian River Basin.

Mr. Rivera was appointed to the Statewide Task Force on the Underground Storage Tank Program. He served as a policy advisor for four years on issues related to water quality protection and cost effectiveness of clean-up alternatives. In 1993 he authored a Basin Plan amendment related to the cleanup of discharges associated with petroleum. That same year it became policy in the North Coast Region, and was the first official recognition by a Regional Water Board in California of the acceptance of natural attenuation and risk-based decision making in clean-ups involving petroleum constituents. The process involved intensive negotiations with stakeholders at the federal, state and local level.

Beginning in 1996, Mr. Rivera participated in the planning aspects of watershed management in the North Coast Region and adoption of TMDLs. He developed approaches to respond to litigation associated with the adoption of water quality strategies in specific watersheds. He conducted public hearings related to California’s compliance with mandates in the federal Clean Water Act. Acting as the Executive Officer of the North Coast Region, he presided over the successful adoption of lists of impaired water bodies in the North Coast Region and was responsible for the preparation of all environmental documents associated with that effort.

As a consultant at Uribe and Associates, Mr. Rivera performed senior level management, advisory, and quality control services for several federal facilities. At the Presidio of Monterey Annex, Mr. Rivera was the Project Manager for storm water compliance activities. Mr. Rivera was the senior technical advisor for long-term development alternatives of a closed solid waste landfill and acted as the senior technical advisor for the Fort Ord Soil Treatment Area/Underground Storage Tank Soil Remediation Area closure project. Mr. Rivera determined criteria for regulatory compliance, sampling, and applicable wastewater discharge limits in order meet compliance requirements for publicly-owned treatment works. 12 3.1.b
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Bob Legge
Technical Professional Consultant/Field Inspector
Bob Legge brings over sixteen years of environmental studies experience to Stone Creek, including seven years with the North Coast Regional Water Quality Control Board and seven years with the Russian River Keeper. Bob has extensive field work
experience, including construction site inspections and river cleanup events.

Stone Creek Environmental Consulting, Santa Rosa, California September 2021 to current
• Lead field personnel conducting On-land Visual Trash
Assessments and construction project erosion and
sediment control inspections.
• Drafting of inspection reports, including documenting findings, deficiencies and issuing corrective action notices. • Drafting of Stormwater Management Plans and Annual
Reports.

Emma Wisler
Technical Professional Consultant
Emma Wisler is a recent graduate of California Polytechnic State University. Emma began her career at Stone Creek as an intern, where she supported a variety of client projects, including the development of municipal stormwater regulatory documents.

Emma specializes in a web-based application to track client projects, including Low Impact Development (LID) inventory and trash reduction. Emma is also experienced with field inspections, including LID maintenance inspections.

Stone Creek Environmental Consulting, Santa Rosa, California June 2021 to July 2022 -Intern
August 2022 to current – Technical Professional
• Manages stormwater program management tool 2NFORM,
tracking client data such as Low Impact Development,
construction, municipal maintenance, and trash.
• Collects field data to inform 2NFORM model, including LID BMP information, drainage patterns, and conditional
assessments.
• Conducts LID maintenance inspections and prepares summary reports.

Education
2008 – B.S., Environmental
Studies Concentration in
Water Technology, Sonoma
State University, Rohnert
Park, California
Professional
Affiliations
California Stormwater
Quality Association, Member
Certifications
Certified Inspector Sediment
and Erosion Control, #1338
Qualified Stormwater
Practitioner, #24459
Education
2022 – B.S., Civil
Engineering, California
Polytechnic State University,
San Luis Obispo, California
Professional
Affiliations
California Stormwater
Quality Association, Member
Certifications
Engineer in Training,
#177834
13 3.1.b
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) 416 Aviation Blvd, Suite H
Santa Rosa, CA 95403
707-318-9415
www.consultingstonecreek.com
[email protected]
Stone Creek Environmental Consulting, LLC (Stone Creek) is a female owned, small business consulting firm specializing in environmental permitting and compliance. Stone Creek was founded in 2020. Although a recently formed company,
Colleen Hunt, owner, brings over 23 years of experience in environmental regulatory compliance. Ms. Hunt established Stone Creek to provide exceptional, client-driven services with the dedication to develop streamlined and cost-effective regulatory compliance strategies.

Company Experience
PROVIDES CLIENTS WITH REGULATORY COMPLIANCE SUPPORT:
• Experience in navigating complex regulatory
processes, including engaging in effective
communication with regulatory agency
representatives.
• Specializing in municipal Phase I and Phase II storm
water program compliance and implementation.
• Supporting clients in developing cost-effective and
streamlined compliance strategies focused at meeting
regulatory mandates.
• Representing client position and perspective when
negotiating with regulatory agencies. This includes
effective advocacy when clients are confronted with
unwarranted or unjustified requirements.
• Familiarity with regulatory agency obligations to the regulated community such as written directives, clear
expectations and appropriate task deadlines, and citing appropriate statutory codes to justify requirements.
• Demonstrated strong technical writing skills applicable to the development of workplans, monitoring reports,
annual reports, and other forms of compliance reports.

Team Experience
14 3.1.b
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Emma Wisler
Technical Assistant
Field Inspector
Bob Legge
Technical Consultant
Field Inspector
Colleen Hunt
Project Manager
Lead Technical Consultant
Luis Rivera
Quality Assurance Lead
Stone Creek Team
15 3.1.b
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Ongoing Projects
Stone Creek provides ongoing consulting services to nine clients. Projects with contracts are primarily for stormwater management assistance. Most contracts are a one-year term, usually ending at the end of the fiscal year. Currently, six contracts will expire on June 30, 2023. Stone Creek has two multi-year contracts, one set to expire December 31, 2024 and the other June 30, 2025. There is one additional contract set to expire October 31, 2023.

KEY PROJECTS INCLUDING REFERENCES

CITY OF UKIAH
REFERENCE: MR. ANDREW STRICKLIN, ENGINEER, 300 SEMINARY AVENUE, UKIAH, CA 95482; 707-463-6200 Stone Creek has been providing stormwater
management services to the City of Ukiah
since 2020. Projects completed include:
• Annual report preparation
• Commercial/industrial inspection program
coordination
• Construction site inspections
• Facility Pollution Prevention Plan
preparation
• Tracking of LID facility inventory
• LID maintenance inspections
• Coordinate, plan and implement a
sediment reduction program including
workplan development, field assessments,
surface water sampling, draft summary
reports with findings, conclusions, and
recommendations
• Develop and provide annual municipal
staff training on stormwater best
management practices
• Develop a Trash Implementation Plan
(TIP) including development of baseline
trash generation levels and compliance
strategy

ROLES AND RESPONSIBILITIES
Colleen Hunt - Program Manager and Lead
Technical Consultant. Responsibilities
include contract and budget management,
track and manage due dates, develop key
project strategies, develop compliance
strategies, draft workplans and reports, and
develop training materials.

Luis Rivera – Quality Assurance Review
Responsibilities include reviewing and
editing all project deliverables.

Bob Legge – Technical Consultant and Lead
Field Inspector
Responsibilities include scheduling and
conducting construction site inspections,
develop inspection reports, and
communicate corrective actions with
responsible parties.

Emma Wisler – Technical Assistant and
Field Inspector
Develop and maintain LID project
inventory, LID maintenance inspections and
reporting; assist with annual report
development.
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services)

CITY OF COTATI
REFERENCE: MR. CRAIG SCOTT, CITY ENGINEER, 201 WEST SIERRA AVE, COTATI, CA 94931 / 707-665-3620 Stone Creek has been providing stormwater
management services to the City of Cotati
since 2020. Projects completed include:
• Attend monthly coordination meetings as a
representative of Cotati
• Annual report preparation
• Commercial/industrial inspection program
coordination
• Construction site inspections
• Facility Pollution Prevention Plan
preparation
• Tracking of LID facility inventory
• LID maintenance inspections; coordinate,
plan and implement a sediment reduction
program including workplan development,
field assessments, surface water sampling,
draft summary reports with findings,
conclusions, and recommendations
• Develop and provide annual municipal
staff training on stormwater best
management practices
• Develop a Trash Implementation Plan
(TIP) including development of baseline
trash generation levels and compliance
strategy.
• Track and maintain surface water and
outfall monitoring data.

Luis Rivera – Quality Assurance Review
Responsibilities include reviewing and
editing all project deliverables.

Emma Wisler – Technical Assistant and
Field Inspector
Develop and maintain LID project
inventory, LID maintenance inspections and
reporting; assist with annual report
development.
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services)

SONOMA COUNTY WATER AGENCY
REFERENCE: MR. KEVIN BOOKER, PRINCIPAL ENGINEER, 404 AVIATION BLVD, SANTA ROSA, CA 95403 707-521-1865
Stone Creek has been providing stormwater
management services to the Sonoma County
Water Agency (SCWA) since 2020. Projects
completed include:
• Attend monthly coordination meetings as a
representative of SCWA.
• Annual report preparation, including the
Program Effectiveness and Improvement
Program annual summary report.
• Bacteria TMDL compliance strategy
implementation and annual reporting.
• Provide consulting services on trash
implementation management strategies.
• Develop a Facility Pollution Prevention
Plan
• Develop Non-Stormwater BMP Plan.
• Develop and provide annual municipal
staff training on stormwater best
management practices.
• Provide regulatory compliance services
outside of stormwater including air quality
permitting, Hazardous Material Business
Plan program management, Spill
Prevention Control and Countermeasure
program management, Integrated Pest
Management training, and wastewater
permitting compliance.
• Track and maintain surface water and
outfall monitoring data.

Luis Rivera – Quality Assurance Review
Responsibilities include reviewing and
editing all project deliverables.

Bob Legge – Technical Consultant
Responsibilities include technical review of
regulations and prepare summary documents
for client review.

Emma Wisler – Technical Assistant
Assist with annual report development and
lead on creating facility maps.

PENDING LITIGATION
There is no pending litigation against Stone Creek or its managing member. 18 3.1.b
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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Stone Creek Environmental Consulting
Cost Proposal and Staff Allocation
ODCs Total
Project
Manager/Lead
Technical
Consultant
Quality Assurance
Technical
Assistant/Field
Inspector
Technical
Consultant/Field
Inspector
General
Administration
Hunt Rivera Wisler Legge Hunt
$185 $205 $165 $165 $85
1 Program Management 12 0 0 0 14 26 $3,410 $0 $3,4102 Compliance Collaboration and Coordination 60 0 0 30 12 102 $17,070 $500 $17,570 3 Annual Report 26 2 10 0 2 40 $7,040 $0 $7,0404 Green Infrastructure Program 30 2 16 0 2 50 $8,770 $0 $8,770 5 Business Stormwater Inspection Plan 20 2 0 226 2 250 $41,570 $1,200 $42,770 6 Construction Site Inspections 20 2 0 116 2 140 $23,420 $1,400 $24,8207 New Development O&M Inspections 10 2 20 0 2 34 $5,730 $250 $5,980 8 Long‐Term Trash Reduction Plan 40 2 26 0 2 70 $12,270 $250 $12,520 Proposal Subtotal 218 12 72 372 38 712 $119,280 $3,600 $122,880 Optional Services $10,000
Proposal Total $132,880
Total Fee
Tasks Labor
Task # Task Description Total Hours Total Labor
Costs
Other
Direct
Costs

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Attachment: Proposal (2702 : Professional Services Contract for NPDES Compliance Services) Contractor and Professional Services Agreement Page 1 of 8 (Rev. 9.07.2021)

CONTRACTOR AND PROFESSIONAL SERVICES AGREEMENT
This Contractor and Professional Services Agreement ("Agreement") is made by and between the City of East Palo Alto, a municipal corporation ("City"), as authorized by the East Palo Alto City Council via Resolution No. __________, and [ type in name ], [ type in the type of entity ], hereinafter referred to as “Contractor”, who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide the City professional services as specified in Exhibit A, entitled “Scope of Work.”

2. Payment. City shall pay Contractor for services rendered pursuant to this Agreement at the times and in the manner set forth in Exhibit B, entitled “Compensation.” The payments specified in Exhibit B shall be the only payments to be made to Contractor for services rendered pursuant to this Agreement.

3. Term. The term of this Agreement shall commence on [ type in start date] and shall continue in full force and effect until [ type in end date ].

4. Facilities and Equipment. Contractor shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this Agreement.

5. Indemnification. Contractor shall indemnify, defend (with independent counsel approved by the City), and hold harmless the City, its officers, officials, directors, employees, agents, volunteers and affiliates and each of them from any and all claims, demands, causes of action, damages, costs, expenses, actual attorney’s fees, Contractor’s fees, expert fees, losses or liability, in law or in equity, of every kind and nature whatsoever arising out of or in connection with Contractor’s operations, or any subcontractor’s operations, to be performed under this Agreement, for the fullest extent permitted by law, with the exception of the sole active negligence or willful misconduct of the City. The provisions of this section shall survive the expiration or termination of this Agreement and are not limited by any provisions relating to insurance in this Agreement.

6. Insurance Requirements. Contractor agrees to comply with all of the Insurance Requirements set forth in Exhibit C, entitled “Insurance Requirements for Contractor.” Failure to maintain required insurance at all times shall constitute a default and material breach.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 2 of 8 (Rev. 9.07.2021)

7. Accident Reports. Contractor shall immediately report (as soon as feasible, but not more than 24 hours) to the City any accident or other occurrence causing injury to persons or property during the performance of this Agreement.

The report shall be made in writing and shall include, at a minimum: (a) the names, addresses, and telephone numbers of the persons involved, (b) the names, addresses and telephone numbers of any known witnesses, (c) the date, time and description of the accident or other occurrence.

8. Conflict of Interest. Contractor warrants and represents that to the best of its knowledge, there exists no actual or potential conflict between Contractor’s family, business, real property or financial interests and the services to be provided under this Agreement. Contractor shall comply with the City of East Palo Alto Conflict of Interest Code and not enter into any contract or agreement during the performance of this Agreement which will create a conflict of interest with its duties to City under this Agreement. In the event of a change in Contractor’s family, business, real property or financial interests occurs during the term of this Agreement that creates an actual or potential conflict of interest, then Contractor shall disclose such conflict in writing to City.

9. Independent Contractor. Contractor is an independent contractor. Neither Contractor nor any of Contractor’s officers, employees, agents or subcontractors, if any, is an employee of City by virtue of this Agreement or performance of any services pursuant to this Agreement. City shall have the right to control Contractor only insofar as the results of Contractor’s services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Contractor accomplishes services pursuant to this Agreement.

10. Licenses, Permits, Etc. Contractor represents and warrants to City that all Contractor services shall be provided by a person or persons duly licensed by the State of California to provide the type of services to be performed under this Agreement and that Contractor has all the permits, qualifications and approvals of whatsoever nature which are legally required for Contractor to practice its profession. Contractor represents and warrants to City that it shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Contractor to practice its profession.

11. Business License. Contractor, and its subcontractors, has obtained or agrees to apply prior to performing any services under this Agreement to City’s Finance Department for a business license, pay the applicable business license tax and maintain said business license during the term of this Agreement. The failure to obtain such license shall be a material breach of this Agreement and grounds for termination by City. No payments shall be made to Contractor until such business license(s) has been obtained.

12. Standard of Performance. Contractor shall provide products and perform

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 3 of 8 (Rev. 9.07.2021)
all services required pursuant to this Agreement in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised under similar conditions by a member of Contractor’s profession currently practicing in California.

Contractor is responsible for making an independent evaluation and judgment of all conditions affecting performance of the work, and shall prepare plans, reports, and/or other work products in such a way that additional costs will not be incurred or, beyond a project budget approved or amended by the City Manager or his or her designee.

Whenever the scope of work requires or permits review, approval, conditional approval or disapproval by City, it is understood that such review, approval, conditional approval or disapproval is solely for the purposes of administering this Agreement and determining whether the Contractor is entitled to payment for such work, and not be construed as a waiver of any breach or acceptance by the City of any responsibility, professional or otherwise, for the work, and shall not relieve the Contractor of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of Contractor.

Contractor’s responsibilities under this section shall not be delegated. Contractor shall be responsible to City for acts, errors, or omissions of Contractor’s subcontractors.

13. Force Majeure. Neither party shall be considered in default of this Agreement to the extent performances are prevented or delayed by any cause by circumstances beyond either party’s reasonable control, such as war, riots, strikes, lockouts, work slow down or stoppage, acts of God, such as floods or earthquakes, and electrical blackouts or brownouts. In the event that the Contractor is unable to meet the completion date or schedule of services, Contractor shall inform the City Representative of the additional time required to perform the work and the City Representative may adjust the schedule.

14. Time is of the Essence. Time is of the essence in this Agreement. Any reference to days means calendar days, unless otherwise specifically stated.

15. Personnel. Contractor agrees to assign only competent personnel according to the reasonable and customary standards of training and experience in the relevant field to perform services under this Agreement. Failure to assign such competent personnel shall constitute grounds for termination of this Agreement.

The payment made to Contractor pursuant to this Agreement shall be the full and

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 4 of 8 (Rev. 9.07.2021)
complete compensation to which Contractor and Contractor’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither Contractor nor Contractor’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of Contractor. The City shall not be required to pay any workers' compensation insurance on behalf of Contractor. Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

16. Prevailing Wages for Public Works Projects. For public works projects, Contractor shall comply with all provisions of California laws dealing with prevailing wages, apprentices, and hours of work. Contractor shall also comply with provisions of Labor Code section 1720 as applicable. Contractor shall maintain certified payroll records evidencing such payment of prevailing wages as required by law.

17. Contractor Not Agent. Except as authorized under this Agreement or as City may authorize in a letter of authorization signed by the City Manager or his or her designee, Contractor shall have no authority, express or implied to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, under this Agreement, to bind City to any obligation whatsoever.

18. Termination or Abandonment by City. The City has the right, at any time and in its sole discretion, to immediately terminate or abandon any portion or all of the services to be provided under this Agreement by giving notice to Contractor.

Upon receipt of a notice of termination, Contractor shall perform no further work except as specified in the notice. Before the date of termination, Contractor shall deliver to City all work product, whether completed or not, as of the date of termination and not otherwise previously delivered.

The City shall pay Contractor for services performed in accordance with this Agreement before the date of termination. If this contract provides for payment of a lump sum for all services or by task and termination occurs before completion of the work or any defined task which according to the performance schedule was commenced before the notice of termination, the fee for services performed shall be based on an amount mutually agreed to by City and Contractor for the portion of work completed in conformance with this Agreement before the date of termination. In addition, the City will reimburse Contractor for authorized expenses incurred and not previously reimbursed. The City shall not be liable for any fees or costs associated for the termination or abandonment except for the fees, and reimbursement of authorized expenses, payable pursuant to this section.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 5 of 8 (Rev. 9.07.2021)

19. Products of Consulting Services. The work product, including without limitation, all writings, work sheets, reports, recordings, drawings, files, detailed calculations and other work products, whether complete or incomplete, of Contractor resulting from services rendered pursuant to this Agreement, shall become the property of City. Contractor agrees that all copyrights which arise from creation of the work under this Agreement shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. City acknowledges that its use of the work product is limited to the purposes contemplated by the scope of work and that the Contractor makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work.

20. Cooperation by City. City shall, to the extent reasonable and practicable, assist and cooperate with Contractor in the performance of Contractor’s services hereunder.

21. Assignment and Subcontracting. Contractor shall not subcontract, assign or transfer voluntarily or involuntarily any of its rights, duties or obligation under this Agreement without the express written consent of the City Manager or his or her designee in each instance. Any attempted or purported assignment of any right, duty or obligation under this Agreement without said consent shall be void and of no effect.

If subcontracting of work is permitted, Contractor shall pay its subcontractor within ten (10) days of receipt of payment by City for work performed by a subcontractor and billed by the Contractor. Use of the term subcontractor in any other provision of this contract shall not be construed to imply authorization for Contractor to use subcontractors for performance of any service under this Agreement.

The City is an intended beneficiary of any work performed by Contractor’s subcontractor for purposes of establishing a duty of care between the subcontractor and City.

22. Successors and Assigns. All terms, conditions, and provisions of this Agreement shall apply to and bind the respective heirs, executors, administrators, successors, and assigns of the parties. Nothing in this section is intended to affect the limitation on assignment.

23. Non-Discrimination/Fair Employment Practices. Contractor shall comply with all applicable federal, state and local laws, rules and regulations in regard to non-discrimination and non-harassment in employment because of race, color, ancestry, national origin, religion, sex, marital status, age, sexual orientation,

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 6 of 8 (Rev. 9.07.2021)
medical condition or physical handicap. Contractor agrees to abide by the City’s Policy Against Discrimination, Harassment and Retaliation as set out in attached Exhibit D.

24. Official Notices. All notices or instruments required to be given or delivered by law or this Agreement shall be in writing and shall be effective upon receipt thereof and shall be by personal service or delivered by depositing the same in any United States Post Office, registered or certified mail, postage prepaid, addressed to:

If to City: Melvin E. Gaines
City Manager
City Manager’s Office
2415 University Avenue
East Palo Alto, CA 94303
If to Contractor: [insert name]
[insert title]
[insert company name]
[insert street name and suite #, if any]
[insert city, state and zip code]
Any party may change its address for receiving notices by giving written notice of such change to the other party in accordance with this section. Routine administrative communications shall be made pursuant to section 1 of Exhibit A.

25. Integration Clause. This Agreement, including all Exhibits, contains the entire agreement between the parties and supersedes whatever oral or written understanding they may have had prior to the execution of this Agreement. This Agreement shall not be amended or modified except by a written agreement executed by each of the parties hereto.

26. Severability Clause. Should any provision of this Agreement ever be deemed to be legally void or unenforceable, all remaining provisions shall survive and be enforceable.

27. Law Governing. This Agreement shall in all respects be governed by the law of the State of California without regard to its conflicts of law rules. Litigation arising out of or connected with this Agreement shall be instituted and maintained in the courts of San Mateo County in the State of California or in the United States District Court, Northern District of California, San Francisco/Oakland Division, California, and the parties consent to jurisdiction over their person and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 7 of 8 (Rev. 9.07.2021)

28. Waiver. Waiver by either party of any default, breach or condition precedent shall not be construed as a waiver of any other default, breach or condition precedent or any other right hereunder.

29. Ambiguity. The parties acknowledge that this is a negotiated agreement, that they have had the opportunity to have this Agreement reviewed by their respective legal counsel, and that the terms and conditions of this Agreement are not to be construed against any party on the basis of such party's draftsmanship thereof.

30. Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

31. Compliance with Laws. Contractor will comply with all statutes, regulations and ordinances in the performance of all services under this Agreement.

32. Confidentiality. Contractor shall treat all records and work product prepared or maintained by Contractor in the performance of this Agreement as confidential and shall not at any time, either directly or indirectly, divulge, disclose or communicate in any manner any City records on information to any third party, other than its own employees, agents or subcontractors who have a need for the City records or information for the performance of services under this Agreement.

A violation by Contractor of this section shall be a material violation of this Agreement and will justify legal and/or equitable relief.

Contractor agrees and acknowledges that this confidentiality provision does not limit the City’s disclosure as required by law, pursuant to a subpoena, the California Public Records Act, or Order of the Court.

33. News and Information Release. Contractor agrees that it will not issue any news releases in connection with either the award of this Agreement, or any subsequent amendment of or efforts under this Agreement, without first obtaining review and approval of said news releases from City through the City Representative.

34. Counterparts. The parties may execute this Agreement in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument.

35. Authority. The person signing this Agreement for Contractor hereby represents and warrants that he/she is fully authorized to sign this Agreement on behalf of Contractor.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 8 of 8 (Rev. 9.07.2021)

36. Exhibits. The following exhibits are attached hereto and incorporated herein by reference:

Exhibit A, entitled “Scope of Work,” including any attachments.

Exhibit B, entitled “Compensation,” including any attachments.

Exhibit C, entitled “Insurance Requirements,” including any attachments.

Exhibit D, entitled “Policy Against Discrimination, Harassment and Retaliation” IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year shown below the name of each of the parties.
[ INSERT CONTRACTOR NAME ]
[ INSERT TYPE OF ENTITY ]
By:
[ insert name ]
[ insert title ]
DATE: ____________________
East Palo Alto Business License No.

CITY OF EAST PALO ALTO,
a municipal corporation
By:________________________
Melvin E. Gaines
City Manager
DATE:___________
APPROVED AS TO CONTENT:
__________________________
[ Insert Department Head Name ]
[ Insert Department Head Title ]
APPROVED AS TO FORM:

John D. Lê
City Attorney

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 1 of 2 Exhibit A (Rev. 9.07.21)

EXHIBIT A

SCOPE OF WORK

1. Representatives.

City Representative:
[ insert name ]
[ insert title ]
[ insert Department name ]
2415 University Avenue
East Palo Alto CA 94303
[ insert telephone number ]
[ insert facsimile number ]
Contractor’s Representative:
[ insert name ]
[ insert title ]
[ insert company name ]
[ insert street name and suite #, if any
]
[ insert City, state and zip code ]
[ insert telephone number ]
[ insert facsimile number ]
All routine administrative communications between the parties will be between the above named representatives and may be by personal delivery, mail, facsimile transmission or electronic mail as agreed between the Contractor Representative and City’s Representative.

2. Services and Schedule.

The services provided shall be as set forth in Attachment 1 of Exhibit A, attached hereto and incorporated herein by this reference and performed according to the schedule set forth therein. Contractor will complete all services by [ insert date ].

3. Phased Performance.

If the schedule calls for the services to be performed in phases or discrete increments, Contractor shall not proceed from one phase or increment to the next without written authorization from the City’s Representative.

4. Additional Services. Additional services are those services related to the scope of Services of Contractor as set forth in Exhibit A but not anticipated at the time of execution of this Agreement (“Additional Services”). Additional Services shall be provided only when authorized by an amendment to this Agreement and approved by the City Manager, or his or her designee. City reserves the right to perform any Additional Services with its own staff or to retain other Contractors to perform said Additional Services. Any costs incurred due to the performance of Additional Services prior to the execution of an amendment will not be reimbursed

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 2 of 2 Exhibit A (Rev. 9.07.21)
under this Agreement or an amendment. .

Contractor’s compensation for Additional Services shall be based on the total number of hours spent on Additional Services multiplied by the employees' appropriate billable hourly rate as established below. City, at its option, may negotiate a fixed fee for some or all Additional Services as the need arises. Where a fixed fee for Additional Services is established by mutual agreement between City and Contractor, compensation to Contractor shall not exceed the fixed fee amount.

5. Key Personnel. All of the individuals identified below are necessary for the successful prosecution of the services due to their unique expertise and depth and breadth of experience. There shall be no change in the personnel listed below, without written approval of the City Representative. Contractor recognizes that the composition of this team was instrumental in the City’s decision to award the work to Contractor and that compelling reasons for substituting these individuals must be demonstrated for the City’s consent to be granted. Any substitutes shall be persons of comparable or superior expertise and experience. Failure to comply with the provisions of this section shall constitute a material breach of Contractor’s obligations under this Agreement and shall be grounds for termination.

Key personnel: [ INSERT LIST OF EMPLOYEES NAMES – If the project does not require assignment of specific personnel, delete “Key Personnel” section ]

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 1 of 3 Exhibit B (Rev. 9.07.21)

EXHIBIT B

COMPENSATION

1. Contractor’s Compensation.

A. City agrees to pay Contractor, at the rate(s) specified below, for those services set forth in Exhibit A of this Agreement and for all authorized reimbursable expenses, for a total not to exceed [ insert dollar amount in words - e.g. Two Thousand Five Hundred Fifty Dollars and 13 Cents ] [ insert dollar amount in number- e.g., $2,550.13 ].

Contractor shall notify City in writing no later than thirty (30) days prior to the estimated date when Contractor will have billed City the maximum payment amount permitted under this Agreement, and Contractor shall provide City with an estimate of the additional compensation required to complete the project.

2. Appropriate Billable Hourly Rates for Services and Additional Services.

Contractor’s billable hourly rates shall be:
[ Insert Name, Title and Hourly Rate ]
or
[“Contractor will perform the services according to the schedule contained in Attachment [insert number] of [insert letter].”]

3. Contractor’s Reimbursable Expenses.

Reimbursable Expenses shall be limited to actual reasonable expenditures of Contractor for expenses that are necessary for the proper completion of the Services and shall only be payable if specifically authorized in advance by City.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 2 of 3 Exhibit B (Rev. 9.07.21)

4. Payments to Contractor.

A. Payments to Contractor shall be made within a reasonable time after receipt of Contractor’s invoice, said payments to be made in proportion to services performed. Contractor may request payment on a monthly basis.

Contractor shall be responsible for the cost of supplying all documentation necessary to verify the monthly billings to the satisfaction of City.

B. All invoices submitted by Contractor shall contain the following information:

1. Description of services billed under this invoice

2. Date of Invoice Issuance

3. Sequential Invoice Number

4. City’s Purchase Order Number (if issued)

5. Social Security Number or Taxpayer Identification Number

6. Amount of this Invoice (Itemize all Reimbursable Expenses”)

7. Total Billed to Date
C. Items shall be separated into Services and Reimbursable Expenses.

Billings that do not conform to the format outlined above shall be returned to Contractor for correction. City shall not be responsible for delays in payment to Contractor resulting from Contractor’s failure to comply with the invoice format described above.

5. Accounting Records of Contractor.

Contractor shall maintain for three (3) years after completion of all services hereunder, all records under this Agreement, including, but not limited to, records of Contractor’s direct salary costs for all Services and Additional Services performed under this Agreement and records of Contractor’s Reimbursable Expenses, in accordance with generally accepted accounting practices. Contractor shall keep such records available for audit, inspection and copying by representatives of the City’s Finance Department or other government agencies during regular business hours upon twenty four (24) hours notice.

The obligations of Contractor under this section shall survive this Agreement.

6. Taxes.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 3 of 3 Exhibit B (Rev. 9.07.21)
Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request. Contractor hereby agrees to indemnify and defend City for any claims, losses, costs, fees, liabilities, damages or injuries suffered by City arising out of Contractor’s breach of this section pursuant to the Indemnification provisions of this Agreement.

7. Taxpayer Identification Number. Contractor shall provide City with an IRS Form W-9, Request for Taxpayer Identification Number and Certification, containing an original signature and any other State or local tax identification number requested by City.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 1 of 2 Exhibit C (Rev. 9.07.21)

EXHIBIT C

INSURANCE REQUIREMENTS
I. TYPES OF INSURANCE
A. Commercial General Liability Insurance: Contractor’s General Liability insurance shall include contractual liability coverage. Contractor shall take out and maintain during the life of this Agreement such Bodily Injury Liability and Property Damage Liability Insurance (Commercial General Liability Insurance) on an occurrence basis as shall protect it while performing work covered by this Agreement from any and all claims for damages for bodily injury, including accidental death, as well as claims for property damage which may arise from the Contractor’s operations under this Agreement, whether such operations be by Contractor or by any sub-Contractor or by anyone directly or indirectly employed by either of them. The amounts of such insurance shall be not less than One Million Dollars ($1,000,000) per occurrence and Three Million Dollars ($3,000,000), in aggregate or Three Million Dollars ($3,000,000) combined single limit bodily injury and property damage for each occurrence.

B. Automobile Liability Insurance: CONTRACTOR shall procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage.

C. Worker's Compensation and Employer's Liability Insurance: Contractor shall have in effect during the entire life of this Agreement Worker's Compensation and Employer's Liability Insurance providing full statutory coverage. In signing this Agreement, Contractor makes the following certification, required by Section 18161 of the California Labor Code: "I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self - insurance in accordance with the provisions of the Code, and I will comply with such provisions before commencing the performance of the work of this Agreement".

D. Professional Liability Insurance: Contractor shall take out and maintain during the life of this Agreement a policy of professional liability insurance, protecting it against claims arising out of the acts, errors, or omissions of Contractor pursuant to this Agreement, in the amount of not less than One Million Dollars ($1,000,000) per claim. Said professional liability insurance is to be kept in force for not less than one (1) year after completion of services described herein.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 2 of 2 Exhibit C (Rev. 9.07.21)
II. ADDITIONAL REQUIREMENTS
A. Broader Insurance Coverage: In the event that Contractor maintains broader coverage and/or higher limits than the City’s minimum requirements, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City’s own insurance shall be called upon to protect it as a named insured.

B. Additional Insured Status: The City of East Palo Alto, its subsidiary agencies, directors, officers, employees, agents, independent contractors and volunteers shall be named as additional insureds on any such policies of comprehensive general and automobile liability insurance.

C. Primary and Non-Contributory Coverage: Except for professional liability and worker's compensation insurance, the policies shall also contain a provision that the insurance afforded to the City, its subsidiary agencies, and their directors, officers, employees, agents, independent contractors and volunteers based on additional insured status shall be primary and noncontributory insurance to the full limits of liability of the policy, and that if the City, its subsidiary agencies and their directors, officers, employees, agents, independent contractors and volunteers have other insurance against a loss covered by a policy, such other insurance shall be excess insurance only.

D. Verification of Coverage: Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause).

E. Notice of Cancellation: Contractor shall provide thirty (30) days' notice, in writing, to the City, at 2415 University Avenue, East Palo Alto, CA 94303, of any pending change or cancellation of the policy.

F. Deductibles or Self-Insured Retentions: Prior to the execution of this Agreement, any deductibles or self-insured retentions must be declared to and approved by City.

G. Breach: In the event of the breach of any provision of this section, or in the event any notice is received which indicates any required insurance coverage will be diminished or canceled, City, at its option, may, notwithstanding any other provision of this Agreement to the contrary, immediately declare a material breach of this Agreement and suspend all further work pursuant to this Agreement.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 1 of 4 Exhibit D

EXHIBIT D
CITY OF EAST PALO ALTO’S POLICY AGAINST

DISCRIMINATION, HARASSMENT AND RETALIATION
EFFECTIVE DATE: 12/21/2004
REVISED DATE: 1/12/07
ADOPTED BY CITY COUNCIL: 12/21/2004
I. PURPOSES
The purposes of this policy are to emphasize the City's commitment to keeping its workplace free of harassment, discrimination and retaliation, to define and provide examples of the conduct that is prohibited, to summarize the respective responsibilities for preventing, reporting, investigating, and responding to violations and to give clear warning of the serious consequences that violators will face.

A copy of this policy shall be provided to all persons who are subject to it, and shall be posted on City bulletin boards in all City facilities.

II. POLICY
All of the following are prohibited by this Policy:
• Discrimination or harassment in any aspect of City employment based on any legally protected characteristic or status, including sex, gender, sexual orientation, race, color, national origin, language, ancestry, religion, age, marital status, domestic partner, physical disability, mental disability, or medical condition.
• Retaliation for opposing, filing a complaint about, or participating in an investigation of, any such harassment or discrimination. • Aiding, abetting, inciting, compelling, or coercing or any such discrimination, harassment or retaliation, or attempting to do so.

The City will take all reasonable steps necessary to prevent such misconduct from occurring, and to remedy and punish any occurrence. Any City employee, Council member, member of any advisory body, including any Commissioner, Committee member, or Board member found having engaged in any such misconduct will be subject to disciplinary action up to and including termination or censure or removal and will be deemed to have acted outside the course and scope of his or her employment.

This policy applies to all City employees, volunteers, interns, vendors, and contractors as well as to all applicants for City positions.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 2 of 4 Exhibit D
The policy shall not be interpreted or applied in any manner that would be inconsistent with any applicable State or Federal law or regulation, or increase the legal liability of the City.

III. DESCRIPTION AND EXAMPLES OF PROHIBITED HARASSMENT
Harassment on the basis of sex is unlawful, and is prohibited by this policy. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature, when:
• An individual's submission to such conduct is made explicitly or implicitly, a term or condition of that individual's employment; or,
• An individual's submission to or rejection of such conducts is used as the basis for an employment decision affecting that individual; or, • The conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, abusive, or offensive work environment.

Sexual harassment need not be motivated by sexual desire or gratification, and may include nonsexual conduct motivated by the violator's hostility towards the victim's gender, or towards the victim's nonconformity to gender stereotypes. Sexual harassment includes not only conduct motivated by gender, but also by pregnancy, childbirth, or a related condition. A harasser may be either male or female, and the victim may either be the same sex or the opposite sex. Even a person who is not the intended target of harassment may be harassed by it if he or she witnesses it.

Sexual harassment may be verbal, visual, or physical. For example:
• Verbal harassment may consist of derogatory, threatening, or intimidating comments, epithets, slurs or jokes; references to gender, physical appearance, attire, sexual prowess, marital status, or pregnancy; or sexual advances, propositions, or demands.
• Visual harassment may consist of displaying or circulating derogatory or offensive posters, cartoons, drawings, photographs, pin-ups, computer images, or electronic media transmissions.
• Physical harassment may consist of assault, battery, or unwelcome, unnecessary and offensive touching (kissing, hugging, patting, rubbing, pinching, brushing against), stating, leering, gesturing, whistling or making noises, impeding or blocking movement, or physical interfering with normal work or movement.

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 3 of 4 Exhibit D
In addition to prohibiting harassment based on sex or gender, this policy also prohibits harassment based on sexual orientation, or upon any other legal protected characteristic or status, such as race, religion, creed, color, national origin, language, ancestry, physical disability, mental disability, medical condition, marital status, domestic partner, or age.

Harassment on the basis of such factors is subject to the principles applicable to sexual harassment, as stated above.

IV. REPORTING DISCRIMINATION, HARASSMENT OR RETALIATION Any City employee, volunteer, intern, vendor, contractor, or applicant who becomes aware of any discrimination, harassment or retaliation prohibited by this policy shall report it immediately to their immediate supervisor, or higher ranking supervisor, or the Assistant City Manager. Under no circumstances shall such a report be required or expected to be made to the person who engaged in the misconduct that is subject to this report.

The responsibility to report conduct prohibited by this policy arises even if the conduct is directed toward someone else and even if the person toward whom it is directed does not want it reported.

Reports may be made orally or in writing, free of requirements as to form.

Because reports of conduct prohibited by this policy will be treated as serious charges, the making of a deliberately false report, or a report made with reckless disregard for its truth or falsity, may subject the maker to disciplinary action.

V. INVESTIGATION AND RESOLUTION
The City of East Palo Alto will investigate all reported violations of this policy. All employees, volunteers, interns, vendors and contractors, members of the City Council, or members of a City advisory body shall cooperate with any such investigation.

Any supervisor, manager department head, member of the City Council, or member of a City advisory body who receives a report of, or who becomes aware of, conduct prohibited by this policy shall promptly report it to the Personnel Officer. Upon receiving the report, the Personnel Officer shall direct any report that accuses a City Council member or appointee to the City Council for investigation and resolution. The City Council shall delegate the responsibility to conduct a prompt, full, and fair investigation to the qualified private investigator.

Upon receiving a report regarding a non-City Council member or appointee, the Personnel Officer shall conduct a prompt, full, and fair investigation, or delegate

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES Contractor and Professional Services Agreement Page 4 of 4 Exhibit D
that responsibility to a qualified City employee or private investigator. The person performing the investigation shall:
• Interview the complainant, the accused, and any other person the investigator believe to have knowledge relevant to the charges; • Gather and review any documentary, electronic, or physical evidence relevant to the charges;
• Consult with legal counsel as needed;
• Determine whether the charges can or cannot be substantiated; and • Develop recommendations for appropriate remedial and/or disciplinary action, if any.

VI. OUTSIDE ADMINISTRATIVE AGENCIES
In addition to the remedies described in this Policy, the U.S. Equal Employment Commission and the California Department of Fair Employment and Housing provide administrative complaint and investigation processes as to harassment, discrimination or retaliation on the basis of a protected status. The toll free telephone number for such office is listed below:

California Department of Fair Employment and Housing 1.800.233.3212 U.S. Equal Employment Opportunity Commission 1.800.669.4000

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Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2702 : Professional Services Contract for NPDES

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Jeff Liu, Chief of Police
SUBJECT: FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and Disposal
Recommendation
Adopt a resolution:

2. Authorizing the City Manager to dispose of two (2) 40mm launchers through destruction;

3. Finding that the annual review pursuant to Subsection (D) of Chapter 9.25.030 of the Chapter 9.25 of the East Palo Alto Municipal Code is complete and no changes to said Chapter are required;

4. Directing staff to update any related departmental policy, including Policy No. 705 (Military Equipment), to conform with any changes directed by resolution.

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

Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 3: Increase Organizational Effectiveness and Efficiency Executive Summary
In accordance with Government Code Sections 7070 through 7072, the East Palo Alto Police Department is reporting the annual use of Military Equipment seeking City Council

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authorization to continue use of existing Military Equipment, and request authorization to dispose of specified military equipment, in addition to finding that pursuant to annual ordinance review requirements, no changes are recommended.

Background
On September 30, 2021, Governor Newsom signed a series of policing reform bills aimed at increasing transparency of peace officer misconduct records, improving policing responsibility and accountability guidelines, raising eligibility standards, banning harmful restraint techniques, and creating a public forum for the purchase of military equipment. Assembly Bill (AB) 481, codified as Government Code Sections 7070 through 7072, focused upon law enforcement’s acquisition, use, and funding of military equipment. The information presented in this report and its attachments fulfills the requirements of AB 481.

AB 481 requires each specified California law enforcement agency to obtain approval from the applicable governing body via adoption for a “military equipment” use policy by ordinance, prior to the law enforcement agency funding, acquiring, or using tools identified as “military equipment.” AB 481 also requires law enforcement agencies to produce annual reports and comply with annual approval, ordinance review, and community engagement requirements.

The Council, in 2022, adopted an ordinance codifying a use policy under East Palo Alto Municipal Code Chapter 9.25.  The ordinance further establishes procedures for any future acquisition of military equipment as defined in AB 481, in addition to ensuring transparency and public engagement.

Analysis
The East Palo Alto Police Department only possesses two (2) pieces of equipment (40mm launchers) meeting the definition of “Military Equipment,” under Government Code section 7070. The launchers, for the past 20 plus years, have been used to project sponge rounds as a less lethal option to the use of deadly force.

While evaluating the use of the 40mm launcher, the department found the equipment had not been used outside of training since 2019. Additionally, the equipment has been in service for over 20 years and has exceeded its useful life. The department has taken both 40mm launchers out of circulation and moved them into secure storage pending City Council resolution for disposal. The Department has no plans to replace the 40mm launchers.

Staff would like the Council to note aspects of the annual report. First, the inclusion of patrol rifles in the annual report is designed to enhance transparency only. Although the thirty-seven (37) patrol rifles do not fit the definition of “Military Equipment,” the Department recognizes the public perception that patrol rifles may meet this definition. Thus, the Department is including patrol rifles as part of this report for full transparency. Patrol rifles are assigned individually to sworn personnel, who are responsible for the daily maintenance of the equipment.

Second, the County Sheriff’s equipment is included given that some level of coordination, though rare, does happen with the County. Specifically, the Department works in partnership with the San Mateo County Sheriff’s SWAT Team for tactical operations. Accordingly, Department personnel assigned to SWAT may be called upon to use County Sheriff’s equipment. Because the Sheriff’s SWAT Team operates within the City of East Palo Alto in this capacity, we are including the Sheriff’s military equipment as part of our annual report.

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The Military Equipment Annual Report has been posted on the East Palo Alto Police Department website for public review since May 16, 2023, and highlighted with an alert banner. Several weekly updates highlighted the existence of the Annual Report.

The department held three separate public meetings where we discussed the Annual Report.

Meeting dates were May 16, May 18, and May 31.

With the foregoing changes, staff is recommending that the Council accept this evening’s report and find that each type of Military Equipment that remains on the annual report list complies with the standards for approval set forth in Chapter 9.25 of the East Palo Alto Municipal Code. Further, staff has completed a review of Chapter 9.25, pursuant to East Palo Alto Municipal Code Section 9.25.030(D), in its entirety and recommends that the Council enact no changes.

Fiscal Impact
The proposed destruction of the two (2) 40mm launchers will occur with the budgeted, court approved, annual destruction of weapons seized as evidence. There is no fiscal impact for receiving this report.

Public Notice
The public was provided notice of this agenda item by posting 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 the San Mateo County Library at 2415 University Avenue.

Attachments

1. EPAPD Military equipment - 2023 Annual Report

2. 2023 Military Equipment SMCO SWAT

3. 2023 Military Equipment Resolution

3.2 Packet Pg. 52
Equipment Type: Semiautomatic Rifles and Ammunition
CA Gov’t Code §7070(c)(10)
Quantity Owned/Sought: 37 owned Lifespan: Indefinite
Equipment Capabilities: The semiautomatic rifle is capable of firing 5.56mm / .223 caliber projectiles.

Manufacturer Product Description: Various models
The standard issue patrol rifles issued to East Palo Alto Police Department sworn members are AR-15 platform rifles with 10.3 inch barrels.

Colt
The Colt OEM Series offers a no-compromise solution for consumers and dealers to build and offer customized rifles based on the proven Colt M4 Platform. Handguards, Buttstock, Trigger Guard, Magazine, and Rear Sight have been omitted completely. The OEM1 is ready to accept most aftermarket Drop-In style Handguards that utilize the factory barrel nut and retaining ring. Also Available with Low Profile Gas Block and without Handguard Retaining Ring (LE6920-OEM2). (https://www.colt.com/detail-page/colt-le6920-oem1-556-161-a2-blk) Smith and Wesson
M&P15 Rifles are the ideal modern sporting rifle. Built to perform multiple uses under various conditions, M&P15 Rifles are as versatile as they are reliable. Engineered for a wide variety of recreational, sport shooting and professional applications, M&P15 Rifles are easy to accessorize, but hard to put down. M&P15 Rifles are lightweight and rugged embodying the best combination of function and form. (https://www.smith-wesson.com/product/mp-15-sport-ii) Bushmaster
The Heart Of Every Bushmaster™, M4 Patrolman's™ is a staple in every collector's set. Handcrafted in America, Quality Control, and Proven to Perfection. (https://www.bushmaster.com/m4-patrolmansca) Purpose/Authorized Uses: Members may deploy the patrol rifle in any circumstance where the member can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the patrol rifle may include, but are not limited to:
a. Situations where the member reasonably anticipates an armed encounter. b. When a member is faced with a situation that may require accurate and effective fire at long range.
c. Situations where a member reasonably expects the need to meet or exceed a suspect's firepower.
d. When a member reasonably believes that there may be a need to fire on a barricaded person or a person with a hostage.
e. When a member reasonably believes that a suspect may be wearing body armor. f. When authorized or requested by a supervisor.

3.2.a
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Attachment: EPAPD Military equipment - 2023 Annual Report (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of g. When needed to euthanize an animal.
(Excerpt from East Palo Alto Police Policy 305)
Fiscal Impacts: The initial cost of equipment varied as the equipment was purchased incrementally.

The current replacement cost for a single patrol rifle is approximately $1200.00. The ongoing costs for ammunition will vary and maintenance is conducted by departmental staff.

Legal/Procedural Rules Governing Use: All applicable State, Federal and Local laws governing police use of force. East Palo Alto Police Department Policies on Use of Force and Firearms.

Training Required: Officers must successfully complete a CA POST certified 24-hour patrol rifle course as well as regular department firearms training and qualifications as required by law and policy.

Other Notes: These rifles are standard issue service weapons for our officers and therefor exempted from this Military Equipment Use Policy per CA Gov’t Code §7070 (C)(10). They have been included in this document in an abundance of caution and in the interest of transparency.

Use during FY 2022/23: Training only
Complaints during FY 2022/23: None
Internal Audits & Violations of policy during FY 2022/23: None Approximate maintenance cost (personnel, training, etc): $15,000.00 (Training and ammunition) Plan to acquire additional equipment: None

3.2.a
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Attachment: EPAPD Military equipment - 2023 Annual Report (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Type: 40mm Less Lethal Launchers and Kinetic Energy Munitions CA Gov’t Code §7070(c)(14)
Quantity Owned/Sought: 2 owned Lifespan: Approximately 20 years Equipment Capabilities: The 40mm Less Lethal Launcher is capable of firing 40mm Kinetic Energy Munitions, which are essentially rubber projectiles.

Manufacturer Product Description:

Manufactured exclusively for Defense Technology®, the 40LMTS is a tactical single shot launcher that features an expandable ROGERS Super Stoc and an adjustable Integrated Front Grip (IFG) with light rail. The ambidextrous Lateral Sling Mount (LSM) and QD mounting systems allow both a single and two point sling attachment. The 40LMTS will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length. The Picatinny Rail Mounting System will accept a wide array of enhanced optics/sighting systems. (https://www.defense-technology.com/product/40mm-lmt-tactical-singlelauncher-expandable-stock/) The eXact iMpact™ 40 mm Sponge Round is a point-of-aim, point-of-impact direct-fire round. This lightweight, high-speed projectile consisting of a plastic body and sponge nose that is spin stabilized via the incorporated rifling collar and the 40 mm launcher’s rifled barrel. The round utilizes smokeless powder as the propellant, and, therefore, have velocities that are extremely consistent. Used for Crowd Control, Patrol, and Tactical Applications. (https://www.defensetechnology.com/product/exact-impact-40-mm-standard-range-sponge-round/) Purpose/Authorized Uses: The 40mm Less Lethal Launchers and Kinetic Energy Munitions are intended for use as a less lethal use of force option.

Fiscal Impacts: The replacement cost of a 40mm launcher is currently $1,035.00. The ongoing costs for munitions will vary and maintenance is conducted by departmental staff.

Legal/Procedural Rules Governing Use: All applicable State, Federal and Local laws governing police use of force. East Palo Alto Police Department Policies on Use of Force and Crowd Control.

Training Required: Officers must complete a department certified 40mm course as well as regular training and qualifications as required by law and policy.

Other Notes: None.

3.2.a
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Attachment: EPAPD Military equipment - 2023 Annual Report (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of San Mateo County Sheriff’s SWAT Team
Definitive Section: CA Gov’t Code §7070(c)(1)
Equipment Type: CTS 7290 diversionary flash-bang devices Quantity Owned/Sought: 42 owned Lifespan: Approximately 5 years Equipment Capabilities: It is an ATF-controlled Class-C explosive device that emits a bright light and thunderous noise to distract potentially dangerous individuals.

Manufacturer Product Description:
7290 -The CTS 7290 is the standard for diversionary flash-bang devices. The 7290 produces an 175db and 6-8 million candela of light output. The patented design of the 7290, incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output.

Purpose/Authorized Uses: Flash Bangs are used by special tactical units during hostage rescue and high-risk warrants.

Fiscal Impacts: The initial costs of equipment is approximately $40 per device which was purchased though the SMSO SWAT Budget. Ongoing cost associated with the CTS diversionary devices during operation and training is estimated to be approximately $2000 per year.

Legal/Procedural Rules Governing Use: The use governing the deployment of diversionary device is located in the SMC Sheriff’s Office SWAT/CNU Procedures Section : 2-11B (Use of Diversionary Devices)
Training Required: Team certified instructors shall complete a POST certified diversionary device instructor course. Each team member shall be instructed by the POST certified trainers on the use, deployment, and storage of diversionary devices.

Other Notes: None.

3.2.b
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Attachment: 2023 Military Equipment SMCO SWAT (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and San Mateo County Sheriff’s SWAT Team
Definitive Section: CA Gov’t Code §7070(c)(1)
Equipment Type: 40mm Less Lethal Launchers, 37mm Liquid Gas Launcher Quantity Owned/Sought: 4 owned Lifespan: Indefinite
Equipment Capabilities: The 40mm Less Lethal Launcher is capable of firing 40mm Kinetic Energy Munitions, which are essentially rubber projectiles and Liquid CS Gas round. The 37mm Less Lethal Launcher is capable of firing 37mm Liquid Ferret CS Gas round.

Manufacturer Product Description:

Penn Arms 40MM launcher are manufactured using 4140 hardened steel, 6061-T6 mil-spec anodized aluminum and DuPont super tough glass filled nylon. These launchers are light weight, versatile and used worldwide by police and corrections officers. The 40MM launcher family of products is available in single-shot, spring-advance multi, and pump-advance multi-versions.

Federal M201-Z Gas Riot Gun (37x122mm) The Federal M201-Z is an upgrade to the Federal L-5 grenade launcher. It's a simple, single-shot, break-open smoothbore launcher intended to fire nonlethal tear gas grenades.

Defense Technology 37mm Single Shot Launcher Manufactured exclusively for Defense Technology, launcher that features a fixed rear stock and an Integrated Front Grip (IFG). The ambidextrous Lateral Sling Mount (LSM) and QD mounting systems allow both a single and two point sling attachment. It will fire standard 37mm less lethal ammunition,
Purpose/Authorized Uses: The 40mm and 37mm Less Lethal Launchers and Kinetic Energy Munitions are intended for use as a less lethal use of force option.

Fiscal Impacts: The initial cost of this equipment was approximately $4,000. The ongoing costs for munitions will vary and maintenance is conducted by departmental staff.

Legal/Procedural Rules Governing Use: All applicable State, Federal and Local laws governing police use of force. The use governing the deployment of chemical agents and less lethal munitions is located in the SMC Sheriff’s Office SWAT/CNU Procedures Section : 2-11c (Use of Chemical Agents) and 2-11d (Use of Less Lethal Munitions)
San Mateo County Sheriff’s Office Policies including:

Lexipol Policy 300 - Use of Force, Conducted Energy Device (Taser), Control Devices and Techniques Lexipol Policy 306 – Firearms
Lexipol Policy 426 – First Amendment Assemblies
Training Required: Team certified instructors shall complete a POST certified Chemical Agent or Less Lethal Instructor Course. Each team member shall be instructed by the POST certified trainers on the use, deployment, and storage of the 40mm and 37mm launchers.

Other Notes: None.

3.2.b
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Attachment: 2023 Military Equipment SMCO SWAT (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and San Mateo County Sheriff’s SWAT Team
Definitive Section: CA Gov’t Code §7070(c)(1)
Equipment Type: CTS CS Gas and Defense Tech CS liquid
Quantity Owned/Sought: 134 owned Lifespan: Approximately 5 years Equipment Capabilities: All three CS gas types can be deployed by ARV gas spike, burn box/tomahawk, 37mm launcher, or hand thrown.

Manufacturer Product Description:

CTS CS Gas - 5230B – Pyrotechnic grenade designed for indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire.

CTS CS Gas - 8230 – The smallest diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports. Specifically for outdoor use and it should not be deployed on rooftops, in crawl spaces or indoors due to fire producing capability. Can be hand thrown or launched.

CTS CS Gas - 4330 – 40mm CS Liquid Barricade, Spin Stabilized, 4.1″ Long, Liquid CS filled projectile penetrates intermediate barriers and delivers irritant agents into an adjacent room.

Defense Tech CS liquid - The Ferret® 37 mm CS Round is a frangible projectile filled with chemical agent.

Upon impacting the barrier, the nose cone ruptures and instantaneously delivers the .16 oz. agent payload inside a structure. The munitions is 4.8 in. by 1.5 in. and travels at 650fps within an effective range of 50 yards.

Purpose/Authorized Uses: Chemical agents may be deployed to incapacitate dangerous or hostile subjects, unruly persons, or to overcome resistance to lawful law enforcement actions. SWAT may tactically deploy chemical agents to induce suspect(s) movement or deny or restrict movement and access to areas.

Fiscal Impacts: The initial costs of equipment is approximately $40 per device which was purchased though the SMSO SWAT Budget. Ongoing cost associatedwith the CTS CS Gas devices and Def Tech CS Liquid Ferret rounds during operation and training is estimated to be approximately $3600 per year.

Legal/Procedural Rules Governing Use: The use governing the deployment of diversionary device is located in the SMC Sheriff’s Office SWAT/CNU Procedures Section : 2-11c (Use of Chemical Agents) San Mateo County Sheriff’s Office Policies including:

Lexipol Policy 300 - Use of Force, Conducted Energy Device (Taser), Control Devices and Techniques Lexipol Policy 306 – Firearms
Lexipol Policy 426 – First Amendment Assemblies
Training Required: Team certified instructors shall complete a POST certified Chemical Agent Instructor Course. Each team member shall be instructed by the POST certified trainers on the use, deployment, and storage of the chemical agents.

Other Notes: None.

3.2.b
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Attachment: 2023 Military Equipment SMCO SWAT (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and San Mateo County Sheriff’s SWAT Team
Definitive Section: CA Gov’t Code §7070(c)(8)
Equipment Type: Firearms of .50 caliber or greater - Barrett Quantity Owned/Sought: 4 owned Lifespan: Indefinite.

Equipment Capabilities: The .50 caliber semi-automatic rifle is capable of firing a .50 caliber bullet.

Manufacturer Product Description:

Barret – various models and configurations – all semi-automatic – all chambered in .50cal

1. Hard case storage.

2. Affixed folding sights.

3. Various type and range of magnification scopes.

4. 5 round detachable magazines.

Purpose/Authorized Uses: These rifles are authorized for use by Sniper-trained members of the San Mateo County Sheriff’s Office SWAT Team. They are for deployment in circumstances where the personnel can articulate a reasonable expectation that the rifle may be needed. Examples for situations that may require the deployment of these rifles include but are not limited to:

1. Situations where the personnel reasonably anticipate an armed encounter.

2. Situations where a suspect may need to be engaged at extended distances with accurate fire.

3. Situations where a vehicle may need to be disabled, to include from an extended distance.

4. Situations where personnel reasonably expect the need to exceed a suspect’s firepower.

5. Situations where the suspect is wearing body armor.

6. Situations where the suspect is in an armored vehicle.

7. Situations where the suspect has taken a hostage(s).

8. Situations where a barricade, armor or similar barrier needs to be penetrated.

9. When authorized or requested by a supervisor.

Fiscal Impacts: The equipment and ammunition was seized over the course of several investigations.

The ongoing cost after all ammunition is expended would be the cost of ammunition. Cleaning and maintenance is conducted by the Sniper Team.

3.2.b
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Attachment: 2023 Military Equipment SMCO SWAT (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and San Mateo County Sheriff’s SWAT Team
Legal/Procedural Rules Governing Use: All applicable State, Federal and Local laws governing law enforcement use of force. Various San Mateo County Sheriff’s Office Polices on the Use of Force and Firearms.

Training Required: In addition to patrol rifle and standard SWAT Operator training, SWAT Snipers must successfully complete a CA POST certified sniper course as well as regular SWAT Sniper training and qualifications as required by law and policy. Snipers currently hold training once a month for 6 hours.

Other Notes: None.

3.2.b
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Attachment: 2023 Military Equipment SMCO SWAT (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and San Mateo County Sheriff’s SWAT Team
Definitive Section: CA Gov’t Code §7070(c)(3)
Equipment Type: Wheeled vehicles that have a breaching apparatus attachable Common Name: Lenco Bearcat
Quantity Owned/Sought: 1 owned Lifespan: 20+ Years
Equipment Capabilities:

To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.

Manufacturer Product Description:

The ARV is designed to provide ballistic protection during tactical events (designed to withstand multiple bullet strikes from small arms fire as well as low level explosions). Equipped with nuclear/radiological detection devices, self-contained breathing apparatus, explosive gas detection devices, and thermal imaging camera. Equipped with emergency lights/siren and a public address system. Common uses for the ARV include citizen and officer rescues, evacuations, and the deployment of officers and chemical agents. The ARV is currently deployed at large events in San Mateo County including parades, and festivals. The ARV is a regional mutual-aid asset that has been requested and deployed to allied agencies in San Mateo County. The ARV responded to high profile events and incidents where local officers were injured/killed in the line of duty.

Purpose/Authorized Uses:

The use of armored vehicle shall only be authorized by a watch commander or SWAT commander, based on the specific circumstances of a given critical incident. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training. The driver of the vehicle shall have a valid California driver license.

Fiscal Impacts:

Initial cost: $300,000.00 Annual maintenance cost of approximately $2,500.

Legal/Procedural Rules Governing Use:

All applicable State, Federal and Local laws governing police use of force. The use governing the operation of the Armored Rescue Vehicle is located in the SMC Sheriff’s Office SWAT/CNU Procedures Section : 2-08 (Armored Vehicle (Bear Cat) Operations)
Training Required: Selected operators will attend a 24 hour POST certified course. SWAT Team members that have attended the POST certified course will instruct SWAT Team member on the operating procedures, mounting and dismounting techniques, firearms deployment procedures, vehicle road operations and ensuring the vehicle is properly serviced and maintained.

Other Notes: None.

3.2.b
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Attachment: 2023 Military Equipment SMCO SWAT (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and Resolution No. XX-2023 1 of 2
RESOLUTION NO. XX – 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
MILITARY EQUIPMENT ANNUAL REPORT, REQUEST TO DISPOSE OF 40MM LAUNCHERS,

AND REQUEST FOR CITY COUNCIL AUTHORIZATION TO CONTINUE THE USE OF

MILITARY EQUIPMENT
WHEREAS, in 2022 Assembly Bill 481 was enacted which requires specified California law enforcement agencies to prepare annual reports to their governing bodies and comply with annual approval, ordinance review, and community engagement requirements; and WHEREAS, in 2022 the East Palo Alto City Council adopted an ordinance, codified at East Palo Alto Municipal Code Chapter 9.25, consisting of a use policy for military equipment; and WHEREAS, the ordinance further establishes procedures for any future acquisition of military equipment as defined in AB 481, in addition to ensuring transparency and public engagement; and WHEREAS, the Police Department has reviewed the ordinance pursuant to Subsection (D) of Section 9.25.030 of Chapter 9.25 of the East Palo Alto Municipal Code and has determined that no changes are recommended; and
WHEREAS, the Police Department evaluated the effectiveness of the 40mm launchers and found them beyond their useful life; and
WHEREAS, the Police Department did not use any military equipment outside a training environment during this reporting period; and
WHEREAS, the Police Department satisfied all legal requirements pertaining to the use of military equipment.

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

1. Finds the foregoing recitals are true and correct and are incorporated by reference into this action;

2. Accepts the annual Military Equipment report, and based thereon, finding that each type of Military Equipment that remains complies with the standards for approval set forth in Chapter 9.25 of the East Palo Alto Municipal Code through May 30, 2024, except as provided for herein;

3. Authorizes the City Manager to dispose of two (2) 40mm launchers through destruction;

4. Finds that the annual review pursuant to Subsection (D) of Section 9.25.030 of Chapter

9.25 of the East Palo Alto Municipal Code is complete and no changes to said Chapter are required; and

5. Directs staff to update any related departmental policy, including Policy No. 705 (Military Equipment), to conform with any changes directed by resolution.

3.2.c
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Attachment: 2023 Military Equipment Resolution (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and Resolution No. XX-2023 2 of 2
Page Break
PASSED AND ADOPTED this 20th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney

3.2.c
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Attachment: 2023 Military Equipment Resolution (2700 : FY 2022-23 Military Equipment Annual Report - Consideration of Equipment Use and

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Melvin E. Gaines, City Manager
Greg Henry, Senior Management Analyst
SUBJECT: Consideration of Granting Consent to The City of Burlingame to Form The San Francisco Peninsula Tourism Marketing District (SFPTMD) Recommendation
Adopt a resolution granting the City of Burlingame consent to include the City of East Palo Alto in the SFPTMD, for the formation of the SFPTMD and future renewals.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
• Promote Housing, Economic and Workforce Development
Background
In 2001, the San Mateo County Tourism Business Improvement District (SMCTBID) was established under the Parking and Business Improvement Area Law of 1989, codified at Calif.

Streets & Highways Code Section 36500 et seq. (89 Law). To modernize the SMCTBID, the San Francisco Peninsula Tourism Marketing District (SFPTMD) is being proposed by the San Francisco Peninsula (SFP) and San Mateo County lodging businesses. The SFPTMD aims to create a new revenue source for marketing and sales promotion efforts in the San Francisco Peninsula area. Similar district models have been successfully implemented in other destination areas throughout the state, driving tourism and increasing room nights for participating lodging businesses. The proposed SFPTMD includes all lodging businesses within the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County.

SFP and lodging business owners are pursuing the formation of the SFPTMD to establish a dedicated revenue source for marketing the San Francisco Peninsula area as a tourist, meeting, and event destination. If established, the SFPTMD is projected to generate approximately $10,895,479 annually for travel and tourism promotion specific to the San Francisco Peninsula area.

3.3 Packet Pg. 64
TOURISM MARKETING DISTRICTS:

Tourism Marketing Districts (TMDs) leverage private sector operations to promote tourism through market-based strategies. These special assessment districts enable lodging business owners to organize their efforts in increasing tourism. Lodging businesses within the TMD contribute funds that are then used to provide services beneficial to the participating businesses. Broadly the benefits of a TDM are:
• Enhanced Destination Marketing: A TMD allows for more comprehensive and effective marketing campaigns, attracting more visitors and increasing tourism revenue.
• Increased Tourism Spending: Through focused marketing efforts, a TMD stimulates economic growth by attracting tourists who spend on accommodations, dining, attractions, and local businesses.
• Collaboration and Partnership: A TMD fosters collaboration among stakeholders, leading to shared goals, resources, and the ability to address common challenges and opportunities in the tourism industry.
• Improved Destination Image and Branding: A TMD plays a vital role in shaping and enhancing the destination’s image and brand. By coordinating marketing initiatives, the TMD can create a consistent and compelling brand identity that distinguishes the destination from competitors, leading to increased recognition and visitor loyalty.

While TMDs are funded by an additional assessment, the structure of a TDM offers several advantages:
• Funds cannot be diverted for other government programs. • TMDs are created and governed by those who pay the assessment. • They provide a stable funding source for tourism promotion.

In California, TMDs are primarily established under the Property and Business Improvement District Law of 1994, codified at Calif. Streets & Highways Code Section 36600 et seq. (94 Law). This law allows the creation of special benefit assessment districts within specific geographic areas. Unlike other special benefit assessment districts, funds raised by TMDs are returned to the private non-profit corporation governing the TMD. TMDs allow for the funding of certain improvements (not relevant here) and services, including promotion of public events, furnishing music in public places, graffiti removal, promotion of tourism, marketing and economic development, in addition to various supplemental services such as security and sanitation, and other activities benefiting the businesses. Calif. Streets & Highways Code Sections 36513 and 36613.

Analysis
The Management District Plan (Attachment 3) outlines the SFPTMD, including its proposed boundary, service plan and budget, and governance structure. The SFPTMD encompasses all lodging businesses within the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos,

3.3 Packet Pg. 65
San Mateo, South San Francisco, and the unincorporated area of San Mateo County.

The annual assessment rate varies depending on the size of the lodging business and is set at one and a half percent (1.5%) of gross short-term sleeping room rental revenue for lodging establishments with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD boundaries. Assessments must be proportional to the estimated benefit received by the businesses, or zones of businesses. Calif. Streets & Highway Sections §§36528, 36536, 366628, and 36632. This proportionality requirement has been met given the tiered rates noted above.

A 94 Law TMD must be initiated by a written petition of the property owners and businesses proposed to pay more than 50 percent of the assessments, not counting a single owner and business paying more than 40 percent. See Calif. Streets & Highways Code Section 36621(a).

The initial petition meting this legal requirement has already been satisfied at a City Council meeting before the Burlingame City Council. See Attachment 1. The Burlingame City Council also adopted a resolution requesting consent from participating city councils in the proposed TMD. See Attachment 2. Staff have been in contact with management of the Seasons Hotel Silicon Valley at East Palo Alto, currently the only hotel in East Palo Alto, and they have submitted a petition (See Attachment 3) requesting to join the TMD and asking that the City Council approve the resolution granting consent to the City of Burlingame to form the SFPTMD.

Assessments will not be collected for stays exceeding thirty (30) consecutive days, stays provided to airline cockpit and/or cabin crews under an agreement between a hotel and an airline, stays of state or federal government employees whose room charges are paid directly by their employing agency with applicable travel orders, and stays by properly credentialed officers or employees of exempt foreign governments based on federal law or international treaty provisions.

The proposed SFPTMD will have a duration of five (5) years, commencing on October 1, 2023, or as soon as possible thereafter, and concluding five (5) years from its start date, with a renewal term of an additional five (5) years, for a total not-to-exceed term of 10 years. Calif.

Streets & Highways Section 36622(h). Implementation of the assessment will begin on October 1, 2023, or as soon as possible thereafter. Once a year, on the anniversary of SFPTMD formation, business owners contributing fifty percent (50%) or more of the assessment may protest and initiate proceedings to terminate the SFPTMD within a thirty (30) day period.

The City of Burlingame will be responsible for the monthly collection of assessments (including delinquencies, penalties, and interest) from each lodging business within the SFPTMD boundaries. The City of Burlingame will make reasonable efforts to ensure the collection of assessments from each lodging business. To cover its collection and administration costs, the City of Burlingame will receive a fee equal to one percent (1%) of the collected assessment amount or a flat fee of $60,000 per year, whichever is greater.

Fiscal Impact
There is no direct fiscal impact to the City of East Palo Alto as the City of Burlingame will manage the collection and administration of the proposed District. Should the District be successful, the City may see an increase in tax revenue due to the increase in business.

3.3 Packet Pg. 66
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Environmental
The action being considered 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 creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

Attachments

1. Resolution of Intention, No. 049-2023, City of Burlingame

2. Resolution of Consent, No. 050-2023, City of Burlingame

3. Petition to Join TMD (Four Seasons)

4. Draft Resolution

3.3 Packet Pg. 67
RESOLUTION NO. 049-2023

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME DECLARING ITS

INTENTION TO ESTABLISH THE SAN FRANCISCO PENINSULA TOURISM MARKETING

DISTRICT (SFPTMD) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A

PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, in 2001, the San Mateo County Tourism Business Improvement District (SMCTBID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (89 Law) by Resolution No. 074-2001; and
WHEREAS, the City of Burlingame (City), San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Francisco Peninsula (SFP), and San Mateo County lodging businesses seek to modernize the SMCTBID by forming a new District, the San Francisco Peninsula Tourism Marketing District (SFPTMD), pursuant to the Property and Business Improvement District Law of 1994; and
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to establish business improvement districts for the purposes of promoting tourism; and
WHEREAS, lodging business owners, and representatives from the City of Burlingame have met to consider the formation of the SFPTMD; and
WHEREAS, SFP has drafted a Management District Plan (Plan) that sets forth the proposed boundary of the SFPTMD, a service plan and budget, and a proposed means of governance; and
WHEREAS, the proposed SFPTMD includes all lodging businesses, existing and in future, in the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County; and
WHEREAS, consent to include lodging businesses in their respective jurisdictions will be requested from the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County; and WHEREAS, lodging businesses who will pay more than fifty percent (50%) of the assessment under the SFPTMD have petitioned the City Council to establish the SFPTMD.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:

1. The recitals set forth herein are true and correct.

2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the formation of the SFPTMD. The City Council accepts the petitions and adopts this Resolution of Intention to establish the SFPTMD and to levy an assessment on certain lodging businesses within the SFPTMD boundaries in accordance with the Property and Business Improvement District Law of 1994.

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Attachment: Resolution of Intention, No. 049-2023, City of Burlingame (2711 : Granting Consent to The City of Burlingame to Form The

3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code § 36622.

4. The City Council declares its intention to establish the SFPTMD and to levy and collect assessments on lodging businesses within the SFPTMD boundaries pursuant to the Property and Business Improvement District Law of 1994.

5. The SFPTMD shall include all lodging businesses, existing and in the future, located within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County as shown in the map attached as Exhibit A.

6. The name of the district shall be San Francisco Peninsula Tourism Marketing District (SFPTMD).

7. The annual assessment rate is one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

8. The assessments levied for the SFPTMD shall be applied toward sales and marketing programs to market assessed lodging businesses in the San Francisco Peninsula area as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which SFPTMD assessments are levied as long as they are used consistent with the requirements of this resolution and the Plan.

9. The proposed SFPTMD will have a five (5) year life, beginning October 1, 2023, or as soon as possible thereafter, and ending five (5) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.

10. Bonds shall not be issued.

11. The time and place for the public meeting to hear testimony on establishing the SFPTMD and levying assessments are set for June 20, 2023, at 7:00 PM, or as soon thereafter as the matter may be heard, at City Hall, 501 Primrose Road, Burlingame, CA 94010.

12. The time and place for the public hearing to establish the SFPTMD and the levy of assessments are set for July 5, 2023, at 7:00 PM, or as soon thereafter as the matter may be heard, at City Hall, 501 Primrose Road, Burlingame, CA 94010. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the

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Attachment: Resolution of Intention, No. 049-2023, City of Burlingame (2711 : Granting Consent to The City of Burlingame to Form The date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than May 21, 2023.

13. At the public meeting and hearing, the testimony of all interested persons for or against the establishment of the SFPTMD may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the proposed SFPTMD that will pay more than fifty percent (50%) of the estimated total assessment of the entire SFPTMD, no further proceedings to establish the SFPTMD shall occur for a period of one (1) year.

14. The complete Plan is on file with the City Clerk and may be reviewed upon request.

15. This resolution shall take effect immediately upon its adoption by the City Council. ______________________________ Michael Brownrigg, Mayor I, Meaghan Hassel-Shearer, City Clerk of the City of Burlingame, certify that the foregoing Resolution was introduced at a regular meeting of the City Council on the 15th day of May, 2023, and was adopted thereafter by the following vote:

AYES: Councilmembers: BEACH, BROWNRIGG, COLSON, ORTIZ, STEVENSON NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
______________________________ Meaghan Hassel-Shearer, City Clerk

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Attachment: Resolution of Intention, No. 049-2023, City of Burlingame (2711 : Granting Consent to The City of Burlingame to Form The

EXHIBIT A
District Boundaries

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Attachment: Resolution of Intention, No. 049-2023, City of Burlingame (2711 : Granting Consent to The City of Burlingame to Form The 1 RESOLUTION NO. 050-2023

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME REQUESTING

CONSENT OF THE CITIES OF BELMONT, BRISBANE, EAST PALO ALTO, FOSTER CITY,

HALF MOON BAY, MENLO PARK, MILLBRAE, PACIFICA, REDWOOD CITY, SAN BRUNO,

SAN CARLOS, SAN MATEO, SOUTH SAN FRANCISCO, AND THE UNINCORPORATED

AREA OF SAN MATEO COUNTY TO FORM THE SAN FRANCISCO PENINSULA TOURISM

MARKETING DISTRICT
WHEREAS, the City Council of the City of Burlingame ( the Council) desires to begin proceedings to form the San Francisco Peninsula Tourism Marketing District (SFPTMD); and WHEREAS, certain lodging business owners have requested that the Council form the SFPTMD; and
WHEREAS, a portion of the territory proposed to be included in the SFPTMD lies within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County (the Cities and County), as shown on the map attached hereto as Exhibit A and incorporated herein by such attachment; and
WHEREAS, the area of the Cities and County that lies within the boundaries of the proposed SFPTMD will, in the opinion of the Council, be benefited by the improvements and activities, and the purpose sought to be accomplished by the work can best be accomplished by a single comprehensive scheme of work.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF BURLINGAME that:

Section 1: The above recitals are true and correct.

Section 2: Consent of the cities of Belmont, Brisbane, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County, through their City Councils and Board of Supervisors, is hereby requested to form the SFPTMD, and to grant to the Council of the City of Burlingame jurisdiction for all the purposes in connection with the creation, operation, and future renewals of the proposed SFPTMD.

Section 3: The Burlingame City Clerk is hereby directed to transmit a certified copy of this Resolution to the clerks of the Granting Cities and County.

Michael Brownrigg, Mayor
DocuSign Envelope ID: 72BCEE96- 8B4D- 43A3-8C06-E6F3ED870850

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Attachment: Resolution of Consent, No. 050-2023, City of Burlingame (2711 : Granting Consent to The City of Burlingame to Form The 2 I, Meaghan Hassel-Shearer, City Clerk of the City of Burlingame, certify that the foregoing Resolution was introduced at a regular meeting of the City Council on the 15th day of May, 2023, and was adopted thereafter by the following vote:

AYES: Councilmembers: BEACH, BROWNRIGG, COLSON, ORTIZ, STEVENSON NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
Meaghan Hassel-Shearer, City Clerk
DocuSign Envelope ID: 72BCEE96- 8B4D- 43A3-8C06-E6F3ED870850

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Attachment: Resolution of Consent, No. 050-2023, City of Burlingame (2711 : Granting Consent to The City of Burlingame to Form The 3 ExhibitA
Boundary Map
DocuSign Envelope ID: 72BCEE96- 8B4D- 43A3-8C06-E6F3ED870850

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Attachment: Resolution of Consent, No. 050-2023, City of Burlingame (2711 : Granting Consent to The City of Burlingame to Form The

PETITION TO THE CITY OF BURLINGAME

TO FORM THE SAN FRANCISCO PENINSULA TOURISM MARKETING DISTRICT We petition you to initiate proceedings to form the San Francisco Peninsula Tourism Marketing District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Lodging Establishment (Name & Address) Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.

Owner Representative/Owner Name (printed) Title
Owner/Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

John Hutar, President and CEO
The San Francisco Peninsula
111 Anza Blvd., Suite 410
Burlingame, CA 94010
(650) 348-3073
DocuSign Envelope ID: F965295B-05A1-4780-8B8C-A6DF64EA5CDC Four Seasons Hotel Silicon Valley
East Palo Alto, CA 94303
2050 University Avenue
DocuSign Envelope ID: 853096B2-908C-4DBD-BB3A-EEC993520A71 General Manager Adora Manalo

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Attachment: Petition to Join TMD (Four Seasons) (2711 : Granting Consent to The City of Burlingame to Form The (SFPTMD))

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Location: The proposed San Francisco Peninsula Tourism Marketing District (SFPTMD) includes all lodging businesses, existing and in the future, located within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County, as shown on the map below.

Services: The SFPTMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales, meetings, and conventions. Sales and marketing programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales, meetings, and conventions.

Budget: The total SFPTMD annual assessment budget for the initial year of its five (5) year operation is anticipated to be approximately $10,895,479. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

Cost: The annual assessment rate is one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD’s boundaries.

Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews’ performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

Collection: The City of Burlingame shall be responsible for collecting the assessments on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SFPTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business.

Duration: The SFPTMD will have a five (5) year life, beginning October 1, 2023, or as soon as possible thereafter, and ending five (5) years from its start date. After five (5) years, the SFPTMD may be renewed pursuant to the 94 Law if business owners support continuing the SFPTMD programs. Once per year, beginning on the anniversary of SFPTMD formation, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a hearing on SFPTMD termination.

Management: The San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Fransisco Peninsula (SFP) shall serve as the SFPTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with the Management District Plan, and must provide annual reports to the Burlingame City Council.

The SFP shall create a SFPTMD Committee tasked with determining how SFPTMD funds are spent, within the designated programs in the Management District Plan, subject to final approval by the SFP Board. The SFPTMD Committee shall include lodging business owners or representatives paying the SFPTMD assessment.

DocuSign Envelope ID: F965295B-05A1-4780-8B8C-A6DF64EA5CDC DocuSign Envelope ID: 853096B2-908C-4DBD-BB3A-EEC993520A71

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Attachment: Petition to Join TMD (Four Seasons) (2711 : Granting Consent to The City of Burlingame to Form The (SFPTMD))

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Boundary Map
DocuSign Envelope ID: F965295B-05A1-4780-8B8C-A6DF64EA5CDC DocuSign Envelope ID: 853096B2-908C-4DBD-BB3A-EEC993520A71

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Attachment: Petition to Join TMD (Four Seasons) (2711 : Granting Consent to The City of Burlingame to Form The (SFPTMD)) Resolution No. XX-2023 1 of 2
RESOLUTION NO.– 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

GRANTING CONSENT TO THE CITY OF BURLINGAME TO FORM THE SAN

FRANCISCO PENINSULA TOURISM MARKETING DISTRICT (SFPTMD) WHEREAS, in 2001, the San Mateo County Tourism Business Improvement District (SMCTBID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (89 Law) by City of Burlingame Ordinance No. 1648; and
WHEREAS, the City of East Palo Alto granted consent to the City of Burlingame to be included within the boundaries of the SMCTBID by East Palo Alto City Council Resolution No. 2522; and WHEREAS, the City of Burlingame, San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Francisco Peninsula (SFP), and San Mateo County lodging businesses seek to modernize the SMCTBID by forming a new District, the San Francisco Peninsula Tourism Marketing District (SFPTMD), pursuant to the Property and Business Improvement District Law of 1994; and WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City of Burlingame to establish business improvement districts for the purposes of driving increased business sales directly to payors; and WHEREAS, the City Council of the City of Burlingame has requested consent to form the SFPTMD in the City of East Palo Alto with adoption of Burlingame City Council Resolution No. 50- 2023, dated May 15, 2023.

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

1. Finds the foregoing recitals true and correct and incorporated by reference into this action; and

2. The City of Burlingame is hereby granted consent to include the City of East Palo Alto in the SFPTMD, for the formation of the SFPTMD for an initial term of five (5) years, and future renewals (an additional five (5) year), for a total not-to-exceed term of 10 years; and

3. The Clerk of the City of East Palo Alto is hereby directed to transmit a certified copy of this Resolution to the Clerk of the City of Burlingame.

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Attachment: Draft Resolution (2711 : Granting Consent to The City of Burlingame to Form The (SFPTMD)) Resolution No. XX-2023 2 of 2
PASSED AND ADOPTED this 20th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney

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Attachment: Draft Resolution (2711 : Granting Consent to The City of Burlingame to Form The (SFPTMD))

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
Bo-Kyoung Kim, Financial Services Manager
SUBJECT: Monthly Cash Treasury Report for April 2023
Recommendation
Accept and file the Cash Treasury Report for the month of April 2023.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
➢ Ensure Our Financial and Organizational Health
Background
Pursuant to Section 53646 of the Government Code of the State of California, the City Treasurer may submit a quarterly report to the City Council regarding the funds and investments of the City. Further, City Investment Policy Section XVIII requires monthly reporting of investment transactions, as specified. Because the City participates in State and County investments pools and does not independently broker or engage outside investment advisors to transact investments, the monthly reporting provides a snapshot of overall cash receipts, transfers, and disbursements on a monthly basis.

Analysis
The Monthly Cash Treasury Report (“Report”) covers cash and investments of the City in the three cash and investment accounts: Wells Fargo Bank, San Mateo County Pool, and the California State Local Agency Investment Fund. The Report does not include petty cash, or the California State Community Infrastructure Program (SCIP) bond proceeds held by a trustee in the name of the City. For investment purposes, City cash is pooled, except for bond proceeds held by a trustee. The City does not have, nor is it legally required to have, separate bank accounts for each individual fund. However, all cash is segregated in the City’s accounting records. Monthly cash transactions for the monthly period ending April 30, 2023, are as

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follows:

Account
Beginning
Balance Receipts Disbursements
Quarterly
Interest
Allocation
Inter-Account
Transfers Ending Balance
Wells Fargo Bank 9,972,356.14 12,291,931.10 (19,091,664.55) - 3,172,622.69 LAIF 32,944,732.71 130,544.59 - - 15,000,000.00 48,075,277.30 San Mateo County Pool 85,981,845.83 4,075,813.01 - - (10,740,000.00) 79,317,658.84 Total 128,898,934.68 16,498,288.70 (19,091,664.55) - 4,260,000.00 130,565,558.83 The Wells Fargo cash balance reflects the book value balance (i.e., total outstanding checks not cashed are deducted from the account balance). The month-to-date cash and investment balance decreased by approximately $6.8M compared to the balance as of March 31, 2023.

April receipts, a total of approximately $12.3M, primarily consist of Fund transfer from San Mateo County Pool ($10.7M), Tax distribution ($0.3M), Business Tax collection for March ($0.1M), PG & E ($0.1m), Veolia ($0.1M), and other various receipts.

April disbursements total $19.1M, primarily consist of Fund transfer to LAIF ($15.0M), Payroll costs ($1.1M), Teichert & Son settlement ($1.1M), G. Bortolotto invoices payment ($0.2M) and other recurring operating expenditures.

City staff made a strategic decision to transfer a portion of the investment fund from San Mateo County Pool to LAIF to achieve greater investment diversification and potentially higher returns while maintaining a prudent level of risk.

The table below reflects recent treasury yield comparisons up to five-year notes since that is the maximum maturity the City may invest:1
Apr-23 Mar-23 Apr-22
6-month Treasury Bill 4.86 4.72 1.37
2-year Treasury Note 4.04 4.06 2.70
5-Year Treasury Note 3.51 3.60 2.92
Local Agency Investment Fund (LAIF) average monthly effective yields were 2.870% in February which increased by 0.04% from March 2023. San Mateo County monthly gross earnings for March were 3.130% compared to 2.650% in February 2023. The County Pool earnings estimates for FY 22-23 are at 2.2%.

Staff believes the City has investment liquidity and anticipated revenues to meet the City’s anticipated expenditure requirements for the ensuing six months.

The following table shows a breakdown of cash and investment balance by fund type. 1 Daily US Treasury Yield Curve. Treasury.gov

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Deposit Value Market Value
General Fund (Inc. Petty cash of $10,800) $ 27,313,142 $ 27,313,142 General Sub-Funds (Commited/Reserved) $ 19,342,195 $ 19,342,195 City Funds Restricted and Committed $ 80,565,593 $ 80,565,593 Successor Agency Trust $ 3,355,424 $ 3,355,424
Unrealized Gain on Investment Pools $ - $ (2,488,565)
$ 130,576,354 $ 128,087,789
Summary April 30, 2023
The book market value totals $128,087,789, including an unrealized loss2 of $2,488,565, reflecting treasury yields during the calendar year. All except for General Fund balance is restricted by either City Council or external parties for specific purposes. Unrestricted cash and investment balance under General Fund ($27,313,142) may be used at Council’s discretion.

Fiscal Impact
None. This report is informational.

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

Environmental
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.
2 San Mateo Pool Investment FMV factor is provided Quarterly basis. Thus, as of 3/31/23 FMV factor is used to calculate Unrealized Gain on Investment Pools.

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EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Minutes of the June 12, 2023 Meeting
Recommendation
Adopt the minutes of the June 12, 2023 Meeting.

Background
The City Council will consider adopting the minutes of the June 12, 2023 Meeting.

Attachments

1. 6-12-2023 Draft Minutes

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East Palo Alto City Council June 12, 2023 Minutes Page 1 of 2

EAST PALO ALTO CITY COUNCIL

SPECIAL MEETING MINUTES
JUNE 12, 2023 MINUTES
EPA Government Center
2415 University Ave, First Floor – City Council Chamber East Palo Alto, CA 94303

1. CALL TO ORDER AND ROLL CALL
The meeting was called to order by Councilmember Ruben Abrica at 6:30 p.m.

Attendee Name Title Status Arrived
Carlos Romero Councilmember Present
Ruben Abrica Councilmember Present
Lisa Gauthier Mayor Present
Antonio Lopez Councilmember Absent
Martha Barragan Councilmember Present

2. APPROVAL OF THE AGENDA
City Council moved to transfer item 9.1 to be presented after item 7.1 in the agenda.

Motion to approve the agenda with the aforementioned changes was made by Mayor Lisa Gauthier and seconded by Carlos Romero.

3. APPROVAL OF THE CONSENT CALENDAR
Motion to approve the consent calendar was made by Ruben Abrica and seconded by Carlos Romero

1. Juneteenth Proclamation

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

3. Minutes of the May 16, 2023, Meeting

4. CLOSED SESSION - NONE

5. PUBLIC COMMENT
- Javanni Brown-Austin
- Gail Wilkerson
- Leland Francois
- Mariana Johnson
- Ofelia Bello
- Adrienne Bryant
- Kyra Brown

6. INFORMATIONAL REPORTS - NONE

7. SPECIAL PRESENTATIONS
Yahsmeen Abdusami Oakley provided a presentation on the Contemporary Reparations Movement. - Herbert Lee Barkus Jr.

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Attachment: 6-12-2023 Draft Minutes (2712 : Minutes of the June 12, 2023 Meeting) East Palo Alto City Council June 12, 2023 Minutes Page 2 of 2 - Gail Wilkerson
- Tiambe
- Fiani Johnson
- Donna Rutherford
- Stewart Hyland
- Q Smith

1. The Descendant Community of East Palo Alto: Strengthening Community through the Contemporary Reparations Movement

8. PUBLIC HEARINGS
Tomohito Oku, Finance Director, provided a presentation on the budget overview.

Public Comment
- Adrienne Bryant
- Duane Bay
- Ofelia Bello
-Laura Rubio

1. FY 2023-24 Proposed Budget Session Hearing No. 2 (Continued)

9. POLICY AND ACTION

1. Planning Commission Seat and Term Assignments Clarification James Colin, City Clerk provided an update on the Planning Commission Seat and Term Assignments. The City Council voted to appoint Uriel Hernandez to the full regular term ending on 5/31/2026. Council also voted to appoint Javanni Brown-Austin to the 1 year partial term ending on 5/31/2024 and Iliana Nicholas to the alternate position ending on 5/31/2024.

10. COUNCIL REPORTS
Mayor Gauthier announced the Juneteenth event on Saturday, June 17, 2023.

11. ADJOURNMENT
The meeting was adjourned at 10:06 p.m.

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Attachment: 6-12-2023 Draft Minutes (2712 : Minutes of the June 12, 2023 Meeting)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: East Palo Alto 2023 Community Survey Highlights Recommendation
Receive a presentation on the East Palo Alto 2023 Community Survey Highlights.

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EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: Adoption of Fiscal Year 2023-24 Successor Agency Budget Recommendation
Adopt a Resolution adopting the Fiscal Year 2023-24 Successor Agency Budget.

Background
Redevelopment agencies in California were dissolved effective February 1, 2012, under ABx1 26 enacted June 2011 (codified at section 34172(a) of the California Health and Safety Code) and held by the California Supreme Court to be constitutional. The Dissolution Statutes were further amended by AB 1484 enacted June 2012, AB 471 enacted February 2014, and SB107 enacted September 2015 (collectively, “Dissolution Statutes”). Under the Dissolution Statutes, on January 10, 2012, the City Council elected to serve as the Successor Agency to the Former Redevelopment Agency of the City of East Palo Alto (the “Successor Agency”).

City staff performs key day-to-day functions for the Successor Agency, primarily assuring that the existing obligations of the former Redevelopment Agency are properly paid, and that all properties and other assets are disposed of in an appropriate manner. Under Health and Safety Code §34179 (j), effective July 1, 2018, a Countywide Oversight Board staffed by the County Auditor-Controller was established to provide direction and oversight to successor agencies regarding the wind-down of the former Redevelopment Agencies. Each related period, the Finance Department prepares a Recognized Obligation Payment Schedule (“ROPS”) which provides the basis for receiving Redevelopment Property Tax Trust Fund (“RPTTF”) monies utilized to pay the authorized obligations of the former Agency. On January 9, 2023 as required by the Dissolution Statues, the Countywide Oversight Board approved the obligation payments for the Fiscal Year (FY) 2023-24 ROPS period.

The Successor Agency accounts for, and transacts, the revenues and disbursements authorized by the Oversight Board and the Department of Finance, including authorizing budget appropriations for the same, including maintaining all accounting, financial, and debt activity for the Successor Agency in a fund referred as the “Successor Agency Trust.” As such,

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staff is seeking Successor Board approval of the FY 2023-24 Successor Agency Budget.

Analysis
The following analysis provides an overview of the FY 2023-24 Budget for the Successor Agency Trust Fund:

Revenues Expenditures In Out
705 Successor Operating $ 2,020,662 $ (2,100,670) $ - $ - $ - $ (80,008) 706 Successor Debt Service $ 1,555,000 $ (1,538,863) $ - $ - $ - $ 16,137 Successor Agency $ 3,575,662 $ (3,639,533) $ - $ - $ - $ (63,871) Operating Transfers Net Change
Fund Balance Fund Description
Operating Capital
Improvement
Plan
FY 2023-24 Proposed Successor Agency Budget Summary
Budgeted revenues and expenditures total $3,575,662 and $3,639,533, respectively. The net change in fund balance totals $64,871 and consists of the following activity:
· Total budgeted revenues of $3.6M equal the total estimated RPTTF distribution requests by staff and approved by the County Oversight Board and the Department of Finance (for ROPS 23-24) or estimated by staff (ROPS 24-25). The Successor Agency only receives funds required to pay authorized and approved obligations. · Total budgeted expenditures of $3.6M consist of 2015 Refunding Bonds debt service ($1.54M); Sponsoring Entity Loan debt service ($2.0M), Bay Road Loan Advances ($60K), and Administrative Overhead $ ($40K).

Fiscal Impact
The adoption of the FY 2023-24 Budget primarily serves as local appropriation authority for obligation payments from the Successor Trust.

Public Notice
Notice of this agenda item by publishing a notice of the hearing dates in “San Mateo County Times” and, also, posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s.

Attachments

1. Resolution

9.1 Packet Pg. 88
1 of 3
RESOLUTION NO. XX – 2023

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

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

REDEVELOPMENT AGENCY OF THE CITY OF EAST PALO ALTO
APPROVING THE FISCAL YEAR 2023-24 REVENUE AND EXPENDITURE BUDGET

FOR THE SUCCESSOR AGENCY
WHEREAS, Redevelopment agencies in California were dissolved effective February 1, 2012, under ABx1 26 enacted June 2011 (codified at section 34172 of the California Health and Safety Code) and held by the California Supreme Court to be constitutional. The Dissolution Statutes were further amended by AB 1484 enacted June 2012, AB 471 enacted February 2014, and SB107 enacted September 2015 (collectively, “Dissolution Statutes”); and
WHEREAS, pursuant to section 34172(a) of the California Health and Safety Code, the Redevelopment Agency of the City of East Palo Alto (the “Former Agency”) has been dissolved and no longer exists as a public body, corporate and politic, and pursuant to section 34173, and the Successor Agency to the Former Redevelopment Agency of the City of East Palo Alto (the “Successor Agency”) has become the successor entity to the Former Agency; and
WHEREAS, under Health and Safety Code §34179 (j), effective July 1, 2018, a Countywide Oversight Board staffed by the County Auditor-Controller was established to provide direction and oversight to successor agencies regarding the wind-down of the former Redevelopment Agencies; and WHEREAS, each related period, the Finance Department prepares a Recognized Obligation Payment Schedule (“ROPS”) which provides the basis for receiving Redevelopment Property Tax Trust Fund (“RPTTF”) monies utilized to pay the authorized obligations of the former Agency; and WHEREAS, the County Oversight Board to the Successor Agency adopted a Resolution on January 9, 2023 approving the 2023-24 Annual Recognized Obligations Schedule (ROPS); and on March 3, 2023, the Department of Finance issued a determination letter authorizing payments on the 2023-24 Annual ROPS; and
WHEREAS, the Successor Agency accounts for, and transacts, the revenues and disbursements authorized by the Oversight Board and the Department of Finance, including authorizing budget appropriations for the same, including maintaining all accounting, financial, and debt activity for the Successor Agency in a fund referred as the “Successor Agency Trust”; as such, based on staff’s recommendation, the City should seek Successor Board approval of the FY 2023-24 Successor Agency Budget.

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

1. Finds the foregoing recitals to be true and correct and are incorporated by reference into this action; and

2. Adopts the Fiscal Year 2023-24 Successor Agency Budget, as follows:

9.1.a
Packet Pg. 89
Attachment: Resolution (2709 : Adoption of Fiscal Year 2023-24 Successor Agency Budget) 2 of 3
PASSED AND ADOPTED this 20st day of June 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

9.1.a
Packet Pg. 90
Attachment: Resolution (2709 : Adoption of Fiscal Year 2023-24 Successor Agency Budget) 3 of
3 Lisa Gauthier
Mayor
ATTEST:

James Colin A
City Clerk
APPROVED AS TO FORM:

John D. Lê
CityAttorney

9.1.a
Packet Pg. 91
Attachment: Resolution (2709 : Adoption of Fiscal Year 2023-24 Successor Agency Budget)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: FY2023-24 Budget Adoption
Recommendation
Adopt a Resolution adopting the Fiscal Year 2023-24 Budget Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Promote Housing, Economic and Workforce Development
· Implement the Comprehensive Transportation and Mobility Plan · Promote Health & Public Safety
· Ensure Our Financial and Organizational Health
· Improve the City's Water Infrastructure
· Develop and Implement a Comprehensive Facilities Master Plan · Enhance Community Services and Parks for Resident
Background
On May 25, 2023 and June 1, 2023, the City Council hosted the two scheduled Fiscal Year (FY) 2023-2024 Budget Study Sessions, followed by a continued budget session for additional Council deliberation and questions on June 12, 2023. Staff presented the following areas of the budget during those sessions:
· Fiscal Year 2023-24 Budget
overview;
· Department and division budgets; and
· Deliberations with detail division
budget information.

At the conclusion of the last meeting, the City Council provided directions and recommendations to staff to complete the development of FY 2023-2024 Budget.

11.1 Packet Pg. 92
Staff has incorporated those items in the budget and will itemize and explain each item in the following analysis section.

Analysis
Changes from Last Proposed Budget
On June 12, 2023, the City Council provided direction and recommendations to the proposed budget. These changes are reflected as items number 1 and 2 in the following table. Staff also identified reductions to the Planning Division budget, which are reflected as items number 3 and in the table. Considering each of these modifications, the projected budget surplus has increased from $223,309 to $267,309.

No. Modified items Department/Division Fiscal imapct Funding Source Budget Surplus (Deficit) $ 223,309 General Fund
1 Implementation of Rent Registry Housing and Economic Devlopment (Rent Stabilization Unit) (150,000) General Fund (Measure L) 2 Reduction of City's Sponsoring Event Budget Community Services and Recreation 5,000 General Fund 3 Reduction of General Plan Updates Budget Planning 162,000 General Fund 4 Reduction of Transcription Services Planning 27,000 General Fund Total changes $ 44,000 General Fund
Updated Budget Surplus (Deficit) 267,309 General Fund
Each item above is described as follows:

Implementation of Rent Registry (No.1)
During discussion with respect to additional resources available as a result of the passage of Measure L, the Council directed staff to allocate funds ($150,000) for implementation of a rent registry which allows the City’s rent stabilization program to collect data on rent-controlled apartments, monitor changes in tenancy and rents, and track compliance with the City’s rent control ordinance. Staff will return to the Council to request additional appropriations if the costs of implementing a rent registry exceed $150,000. Staff will also provide updates on Measure L revenue projections during the mid-year budget update and discuss use of any additional available funds.

Reduction of City’s Sponsoring Event (No.2)
During the deliberation process, the Council noted an inadvertent continuing sponsorship contribution that had been intended to be a one-time disbursement, not a continuing financial obligation. As a result, the budget for this specific event is being removed in the amount of $5,000.

Reduction of General Plan Updates (No.3)
On May 16, 2023, the City Council approved two crucial projects; namely, the multijurisdictional Safety Element project and the Environmental Justice Element project, in compliance with State Law. This decision was made shortly after the initial budget meeting held in April. In order to finance both General Plan elements, a total of $359,196 was allocated from the General Fund Planning budget, with half of the cost covered by the current fiscal year budget and the remaining half to be included in the proposed FY23-24 budget. However, it was discovered that the item was over-budgeted by $162,000. As a result, the budget has been

11.1 Packet Pg. 93
adjusted accordingly.

Reduction of Transcription Services (No.4)
During the deliberation process, the City Council raised concerns about the Transcription Services budget line item in the Planning Division budget. As a result, staff reviewed the necessity of these services and ultimately made the decision to eliminate it from the budget.

In addition to the items above, the Council has expressed a desire to manage costs associated with public safety, including managing the number of full-time equivalents (FTEs). In light of fiscal pressures, the Council has suggested studying public safety staffing. Staff will return with a proposal to examine public safety and other City staffing during FY 2023-24 through a comprehensive organizational staffing analysis.

FY 2023-24 Citywide Budget
The FY 2023-24 Citywide Budget (excluding Trust & Agency) demonstrates total revenues of $52.4M, representing a modest increase of $1.6M (3.2%) compared to the previous year's adopted budget. Similarly, total expenditure amounted to $49.3M, indicating an increase of $0.5M (1.0%) from the respective prior year budget. These changes contribute to a positive net change in the fund balance of $3.2M across all City funds.

Description General
Fund
Restricted
Funds
Capital
Funds
Enterprise
Funds
TOTAL
CITY
FUNDS
Successor
Trust Fund
Total Revenues 34,743 9,330 2,469 5,880 52,421 3,576
Total Expenditures (33,336) (11,290) (561) (4,079) (49,266) (3,640) Net Sources / (Uses) 1,407 (1,960) 1,907 1,801 3,156 (64) Net Transfers (1,139) 1,139 - - - -
Change in Fund Balance 267 (820) 1,907 1,801 3,156 (64) FY 23-24 Proposed - Citywide Funds (In 000's)
FY 2023-24 General Fund Budget
The projected FY 2023-24 General Fund Budget anticipates revenues of $34.7M, which will be offset by expenditures of $34.5M. This consists of $33.3M allocated towards operating expenditures and $1.1M for transfers to support other fund operating deficits and comply with statutory requirements. It is important to note that this balance condition does not alleviate the significant strain and pressure on the General Fund. Staff is aiming to prepare for volatility that would require close monitoring and potential adjustments. The table below provides a breakdown of the fund changes in detail.

11.1 Packet Pg. 94
Revenues Expenditures In Out
10 General Fund $ 33,002,578 $ (29,460,905) $ - $ - $ (3,604,364) $ (62,691) 11 IT Replacement Fund $ - $ (1,226,742) $ - $ 1,226,742 $ - $ - 12 Equipment & Vehicles $ - $ (328,500) $ - $ 328,500 $ - $ - 13 Self Insurance $ - $ (909,684) $ - $ 909,684 $ - $ - 16 Community Benefit Fund $ - $ - $ - $ - $ - $ -
17 Com Dev Pass Thru $ 1,540,000 $ (1,410,000) $ - $ - $ - $ 130,000 99 Emergency Fund $ 200,000 $ - $ - $ - $ - $ 200,000
$ - $ - $ - $ (2,464,926) $ 2,464,926 $ -
$ 34,742,578 $ (33,335,831) $ - $ - $ (1,139,438) $ 267,309

ELIMINATING ENTRY
General Fund
FY 2023-24 General Fund Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
Net Change
Fund Balance
The initial proposed budget projected an $820K deficit in the General Fund. Following City council budget hearings and further staff discussions, the budget proposed today projects a $267K surplus. The city is balancing the budget through reduction efforts in operating expenditures across various departments, taking a conservative approach to personnel changes and deferred General Fund capital contributions. We reiterate below, the significant and critical resource challenges impacting the General Fund:

General Fund Structural Deficit
The City has been facing a structural budget deficit in the past few years where resources for the upcoming budget are insufficient to cover the costs of currently proposed services. The Baseline Budget for FY23-24 recognized a budget deficit in the amount of $820K in the General Fund. This is due mainly to increased personnel costs as a result of the negotiated labor contracts and increased required contributions to the pension plans. Revenue projections in the fiscal year 2023-2024 will remain highly uncertain and include the following risk factors:

Revenue Type
Projected Negative
Impact
Impact Status
Property Tax in Lieu
$1.5M shortfall is
projected
Property tax funding shortfalls related to state legislation regarding school funding and in-lieu vehicle license fees. In January 2023, the State DOF notified the County Controller that funds for the backfill request are not included in the Governor’s proposed FY 23-24 budget.

Transient Occupancy Tax
10% below from Prepandemic figure
TOT revenues has recoverred and is projected to recover significantly from the pandemic. However, FY23-24
revenues are projected at 90% level from the prepandemic figure.

Sales Taxes Less than 1% growth
is projected
Slow growth revenues due to continuing current economic environment, including high inflation and slowdown in the housing market
Extended time gap in new development Unknown
Extended gaps in taxable development projects and
uncertainty in timing of development completion due to
underlying infrastructure challenges and the need to
analyze and support the specific plan update in the
Ravenswood Business District
We further note the budget does not reflect unfunded capital projects scheduled in FY23-24 amounted to approximately $4.4M. The Council will need to appropriate funds from the General Fund Reserve or other sources (potentially grants) to fund these projects. Staff will request funding for each project before beginning projects.

11.1 Packet Pg. 95
FY 2023-24 Special Revenue Funds Budget
Budgeted operating revenues and expenditures total $9.3M and $10.0M, respectively; increased by net operating transfers- in of $1.1M and offset by capital expenditures of $1.3M. Capital funding consists of SB1-funded and County Measure A and Measure W projects for qualified street and sidewalk improvements.

Revenues Expenditures In Out
213 Police Grants $ 163,520 $ (176,229) $ - $ - $ - $ (12,709) 215 Misc Federal and State Grants $ 495,611 $ (184,850) $ - $ - $ - $ 310,761 230 Local Grants $ 728,000 $ (720,000) $ - $ - $ - $ 8,000 231 CYSFF TOT $ 289,400 $ (322,997) $ - $ - $ - $ (33,597) 232 Measure C $ 2,880 $ - $ - $ - $ - $ 2,880
Community Programs $ 1,679,411 $ (1,404,076) $ - $ - $ - $ 275,335 201 State Gas Tax $ 1,496,600 $ (1,112,893) $ (550,000) $ 64,500 $ - $ (101,793) 202 Measure A $ 720,400 $ (3,459) $ (550,000) $ - $ - $ 166,941 203 NPDES $ 248,300 $ (769,544) $ - $ 531,244 $ - $ 10,000 206 Park In Lieu $ 4,800 $ - $ - $ - $ - $ 4,800
221 Lighting District $ 862,700 $ (193,249) $ - $ - $ - $ 669,451 222 Drainage District $ 163,040 $ (309,324) $ - $ 146,284 $ - $ - 234 County Measure W $ 308,000 $ (1,689) $ (220,000) $ - $ - $ 86,311 Infrastructure Programs $ 3,803,840 $ (2,390,159) $ (1,320,000) $ 742,028 $ - $ 835,710 204 Rent Stabilization $ 614,860 $ (800,529) $ - $ - $ - $ (185,669) 207 Housing In Lieu $ 1,134,000 $ (2,872,920) $ - $ - $ - $ (1,738,920) 209 Housing Assistance Program $ 4,800 $ (6,346) $ - $ - $ - $ (1,546) 218 Affordable Housing TOT $ 313,400 $ (28,917) $ - $ - $ - $ 284,483 219 Measure HH $ 1,747,400 $ (848,121) $ - $ - $ - $ 899,279 220 Lo-Mod Housing Successor $ 32,000 $ (1,618,476) $ - $ 397,410 $ - $ (1,189,066) 233 Silicon Valley Community $ - $ 0 $ - $ - $ - $ -
Affordable Housing Programs $ 3,846,460 $ (6,175,308) $ - $ 397,410 $ - $ (1,931,439) Total Special Revenue Funds $ 9,329,711 $ (9,969,543) $ (1,320,000) $ 1,139,438 $ - $ (820,394) Net Change
Fund Balance
FY 2023-24 Special Revenue Funds Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
To enhance clarity and ease of understanding, Special Revenue Funds are organized into the following subcategories:

Community Program-related: Total revenues of $1.6M are offset by total expenditures of $1.4M. This category has changed significantly due to ARPA funding. In the past two years, the City received and spent ARPA funds for approximately $3.5M each year addressing the revenue losses from Covid-19 pandemic. ARPA funds will have been spent completely by the end of the current fiscal year and, therefore, this proposed budget does not include such expenditures and revenues.

Infrastructure-related: Operating revenues of $3.8M plus transfers in of $0.7M are offset by total expenditures of $3.7M, including restricted transportation capital spending of $1.3M. Notably, the General Fund is partially supporting NPDES and Drainage District funds for a total of $678K. This is increased from previous years due mainly to increases in responses to NPDES compliance requirements and Maintenance Division expenditures related to the drainage system. Costs also include increased staff and program costs related to the Environmental Programs activity. Staff acknowledge that long-term capital, program and maintenance costs must be analyzed in order to support the basis

11.1 Packet Pg. 96
for potential assessment or other district funding for the underlying infrastructure.

Affordable Housing-related: Total revenues of $3.8M and transfers in ($0.4M) are offset by total expenditures of $6.2M, including CalHome loan disbursements ($1.0M), Mid-Peninsula Gap funding ($0.7M), Pilot Measure HH Workforce Development Program ($0.6M), and Homelessness program ($0.4M subject to Council approval).

FY 2023-24 Capital Funds Budget
Budgeted revenues and expenditures total $2.5M and $0.6M respectively.

Revenues Expenditures In Out
301 Capital Improvement Fund $ 610,400 $ (394,766) $ - $ - $ - $ 215,634 303 Capital Grant $ - $ - $ - $ - $ - $ -
305 Parks & Trails $ 441,779 $ - $ - $ - $ - $ 441,779
306 Public Facilities $ 774,906 $ - $ - $ - $ - $ 774,906 307 Transportation $ 278,251 $ (83,333) $ - $ - $ - $ 194,918 308 RBD-I Storm D $ 360,352 $ (83,333) $ - $ - $ - $ 277,019 309 RBD-O Storm D $ 3,200 $ - $ - $ - $ - $ 3,200
Capital Funds $ 2,468,888 $ (561,433) $ - $ - $ - $ 1,907,456 Description
Operating Capital
Improvement
Plan
Operating Transfers
Net Change
Fund Balance
FY 2023-24 Capital Funds Budget Summary
Fund
Notable trends include restoration of impact fee revenues from the deferred development issues related to the East Palo Alto Sanitary District (EPASD) which staff expect the revenues to start coming in FY 2023-24. However, staff anticipate a chance of downward adjustments to the revenue projections as status of the governance issues related to EPASD continues to evolve.

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

As noted previously, near-term revenue growth has been a challenge, and the City now faces more intense challenges in the ability to meet increasing operational cost demands, provide maintenance of large infrastructure projects, and co-fund such projects on a “pay as you go basis”.

Despite major progress toward mitigating several infrastructure risks, several significant, critical capital-related regulatory issues remain, primarily related to water distribution and storage; and storm water and storm water facilities. Given the age and condition of many of the City’s major infrastructure systems, the City will need to continue to address critical funding challenges through aggressive pursuit of grant funding, as well as careful and targeted use of existing reserves.

FY 2023-24 Enterprise Funds
Budgeted revenues and expenditures total $5.9M and $4.1M, respectively.

11.1 Packet Pg. 97
Revenues Expenditures In Out
510 Water Service Fund $ 524,720 $ (393,116) $ - $ - $ - $ 131,604 511 Water Capital Fund $ 1,264,000 $ (325,000) $ - $ - $ - $ 939,000 512 Water Meter Fund $ 22,400 $ (10,000) $ - $ - $ - $ 12,400 513 Water Capacity Fee Fund $ 785,863 $ (83,333) $ - $ - $ - $ 702,530 Water Enterprise $ 2,596,983 $ (811,449) $ - $ - $ - $ 1,785,534 520 Garbage Service Fund $ 3,283,200 $ (3,267,255) $ - $ - $ - $ 15,945 Total Enterprise $ 5,880,183 $ (4,078,704) $ - $ - $ - $ 1,801,479 FY 2023-24 Enterprise Funds Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers
Net Change
Fund Balance
The net change in fund balance totals a surplus of $1.8M with the following major trends:
· The Water Enterprise Fund consists of lease revenue and capital surcharges paid or passed to the City from Veolia. Water Enterprise charges collected from customers provide a primary source of revenue for major capital improvements to the water system infrastructure. It’s important to note that the Council adopted a resolution suspending the water meter replacement surcharge and, instead, increasing the water capital surcharges which will increase approximately $0.4M in aggregated revenues. Also, some of approved water capital projects such as Water Meter Replacement project and University Water Main project are fully funded and will be carried forward during the mid-year budget review.
· The Solid Waste (garbage) Enterprise Fund consists of residential solid waste services collected through the County property tax rolls and passed to Recology. Recology direct-bills the multi-family housing and commercial accounts. The fund also accounts for local solid waste service improvement programs.

Update on Ten-Year adopted CIP and Two-Year adopted CIP A Capital Improvement Plan (“CIP”) serves as a City's road map for preserving, maintaining, and developing any City-owned public infrastructure or assets.

Generally, a CIP provides a five- to ten-year plan for all individual capital projects, equipment purchases, and major studies and includes construction, scheduling, and financing for each project. A comprehensive CIP clearly delineates the objectives of capital programs and its relationships to a City’s long-range development plans.

On September 15, 2020 the City Council adopted the Ten-year CIP. Since the adoption of the CIP in 2020, a number of new projects have been added to the CIP based on City Council priorities, grant funding, and staff recommendations. These projects are reflected in the Two-year CIP update that was approved by the City Council on June 7, 2022.

The City will continue to implement its capital priorities over the next fiscal year. The Two-Year CIP, as well as the Ten-Year adopted CIP is located on the City website through the following link:
<https://www.cityofepa.org/publicworks/page/capital-improvement-program> The information presented below supplements and updates the Ten-Year CIP adopted in 2020 as well as the Two-year CIP update adopted in 2022. The tables below present updates on the Two-year Capital Improvement Plan (CIP) report and

11.1 Packet Pg. 98
the Ten-year CIP report. The first table contains a list of unfunded projects, while the second table lists the funded projects.

CIP ID Project FY 23-24
FY24-25 or
after Funding status
FA-02 Community Development Building/Tate Improvements $ 120,000 $ - Unfunded FA-05 Police department Facility (RV SAFE PARKING) $ - $ 15,000,000 Unfunded FA-16 New Public Library* $ 1,100,000 $ 30,000,000 Unfunded PK-04 PK-04 MLK JR Park Expansion $ - $ 21,000,000 Unfunded PK-10 PK-10 Bell Street Park Improvements $ 1,000,000 $ 14,500,000 Unfunded SD-06B O’Connor Pump Station Phase II $ - $ 7,770,000 Unfunded SD-08 SD-08 Trash Capture Device Installation $ 250,000 $ - Unfunded SP-02B SFCJPA Reach 2 Contribution (3/3) $ 1,500,000 $ - Unfunded ST-28 East Bayshore Improvements $ - $ 200,000 Unfunded ST-32 PD Site Improvements $ 400,000 $ - Unfunded
WD-06 Fire Hydrant Replacement Program $ - $ 60,000 Unfunded WD-07 Water Valve Replacement Program $ - $ 160,000 Unfunded $ 4,370,000 $ 88,690,000 Unfunded
*Partially funded - see the funded project table below
Subtotal Unfunded
CIP ID Project FY 23-24
FY24-25 or
after Funding status
FA-15 Cummings loft Improvements $ 550,000 $ - Funded
FA-16 New Public Library $ 1,900,000 $ - Funded
PK-18 Railspur Trail Improvements $ 942,000 $ - Funded
ST-07* Annual Street Resurfacing $ 550,000 $ 550,000 Funded ST-11* Annual Sidewalk Repair - High Risk Tripping Hazards $ 250,000 $ 250,000 Funded ST-15* Annual Signage & Striping Improvements $ 50,000 $ 50,000 Funded ST-25 Bus Stop Shelter Improvements $ 1,000,000 $ - Funded ST-28 East Bayshore Improvements $ 400,000 $ - Funded
Multiple University/Weeks Street Water Line $ 7,656,000 $ - Funded WS-01A WS-01A Emergency Water Connections – Palo Alto $ 450,000 $ - Funded WS-03A New Storage Tank - East of Hwy 101 $ - $ 5,000,000 Funded WD-05 Water Meter Replacement Program $ 300,000 $ 300,000 Funded P-2 16-Inch Water Transmission and Fourth SFPUC Turnout $ - $ 1,600,000 Funded $ 14,048,000 $ 7,750,000 Funded
*Reflected in the Proposed Budget
Subtotal Funded
Staff will return to Council for consideration of funding sources and contractual approvals for these projects. It's worth noting that the unfunded projects for FY23-24, which amount to a total of $4.37 million, are not reflected in the Proposed Budget and will highly likely require General Fund contributions to their respective CIP funds if they are approved by the Council.

Personnel Changes
The table below provides a list of proposed classification changes.

11.1 Packet Pg. 99
Title Division Note
Net
FTE
Funding
Source
Estimated
Cost
Modification:

HR Tech / HR Tech I/II HR Converting HR Tech to HR Tech I/II n/a GF 14,592 Sr. MA / Accountant Senior Finance Converting Sr. MA to Accountant Seniorn/a GF $ (42,923) Code Enforcement Officer/Code
Enforcement - Building Inspector
Hybrid Building
Converting one of Code
Enforcement Officer positions to
Code Enforcement/Building
Inspector Hybrid position n/a GF 17,070
Sub-total modification $ (11,261)
Limited terms:

Assistant to City Manager CMO
Extending 1 yr limited position for
another year n/a GF 241,974
Management Analyst I/II - 1 yr term PD 1 year limited position n/a GF 195,602 $426,315
$ (11,261)
Estimated Funding Request
Estimated ongoing costs
To address the budget shortfall identified in the preliminary budget, staff worked to minimize the need for additional position requests. The proposed budget includes a temporary increase in personnel costs of $426K for limited-term positions, but there is no ongoing increase in requests. In fact, the budget assumes a slight reduction in costs resulting from these changes.

The proposed solution involves modifications to targeted positions in Human Resources (HR), Finance and Building, and extensions of existing limited-term positions in Police and the City Manager's Office.

The City has transferred existing personnel-related Finance functions to HR which requires additional capacity in HR. The Police Department and City Manager’s Office both are requesting continuance of existing limited period positions for an additional year. The costs associated with these modifications are included in the Proposed Budget. This staffing approach is proposed as a conservative method to provide municipal services given projected revenue shortfalls. The work volume that staff is undertaking, and the existing work backlog, suggests additional staffing is needed; however, adding regular staff positions during challenging economic times is not ideal. As mentioned above, staff will return to the Council with a proposal to conduct a comprehensive organizational staffing analysis.

Fiscal Impact
Establish the City’s revenue budget at $52,421,360 and appropriation budget at $49,265,511 including Capital Improvement Program budget, and the permanent staffing at 120.20 full time equivalents (FTEs). The City has a total city-wide budget surplus of $3,325,991. However, the City recognizes deficits in certain General Fund operations and other restricted funds (Exhibit B of Resolution) which requires the use of available reserve balances totaling $3,325,991.

Environmental

11.1 Packet Pg. 100
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

Attachments

1. Resolution

2. FY 23-24 Proposed Budget

11.1 Packet Pg. 101
1 of 4
RESOLUTION NO. XX – 2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO ADOPTING THE FISCAL YEAR 2023-24 REVENUE AND EXPENDITURE BUDGET

FOR THE CITY OF EAST PALO ALTO
WHEREAS, the City Council desires a spending plan for the City of East Palo Alto General, Special Revenue, Capital, Fiduciary, and Enterprise Funds in order to account for Fiscal Year 2023-24 anticipated revenues and to appropriate projected expenditures; and WHEREAS, City of East Palo Alto Municipal Code section 3.08.110 requires the adoption of an annual budget no later than June 30th prior to the beginning of the fiscal year; and WHEREAS, the City Council held budget message and budget study sessions between April 18, 2023 and June 12, 2023, including a final Budget Hearing on this date to discuss the City’s anticipated revenues and expenditure programs and to obtain public comment regarding the Fiscal Year 2023-24 Budget; and
WHEREAS, such public hearings were duly noticed not less than seven days nor more than 21 days prior to the first hearing held on May 25, 2023 in accordance with East Palo Alto Municipal Code section 3.08.070;

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

1. Finds the foregoing recitals are true and correct and are incorporated by reference into this action;

2. Adopts the FY 2023-24 Budget (Exhibit A); and

3. Authorizes the use of available Reserve Balances totaling $3,325,991 and the Finance Director asserts such funds are available, in order to fund certain General Fund operations, enterprise fund and other restricted fund deficits (Exhibit B)
PASSED AND ADOPTED this 20st day of June 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

11.1.a
Packet Pg. 102 Attachment: Resolution (2708 : FY2023-24 Budget Adoption) 2 of 4
Lisa Gauthier
Mayor
ATTEST:

James Colin A
City Clerk
APPROVED AS TO FORM:

John D. Lê
City Attorney

11.1.a
Packet Pg. 103 Attachment: Resolution (2708 : FY2023-24 Budget Adoption) 3 of 4
Exhibit A
Revenues Expenditures In Out
10 General Fund 33,002,578 $ (29,460,905) $ - $ - $ (3,604,364) $ (62,691) $ 11 IT Replacement Fund - $ (1,226,742) $ - $ 1,226,742 $ - $ - $ 12 Equipment & Vehicles - $ (328,500) $ - $ 328,500 $ - $ - $ 13 Self Insurance - $ (909,684) $ - $ 909,684 $ - $ - $ 16 Community Benefit Fund - $ - $ - $ - $ - $ - $
17 Com Dev Pass Thru 1,540,000 $ (1,410,000) $ - $ - $ - $ 130,000 $ 99 Emergency Fund 200,000 $ - $ - $ - $ - $ 200,000 $
$ - - $ - $ (2,464,926) $ 2,464,926 $ - $
$ (33,335,831) 34,742,578 $ - $ - $ (1,139,438) $ 267,309 $ 213 Police Grants 163,520 $ (176,229) $ - $ - $ - $ (12,709) $ 215 Misc Federal and State Grants 495,611 $ (184,850) $ - $ - $ - $ 310,761 $ 230 Local Grants 728,000 $ (720,000) $ - $ - $ - $ 8,000 $ 231 CYSFF TOT 289,400 $ (322,997) $ - $ - $ - $ (33,597) $ 232 Measure C 2,880 $ - $ - $ - $ - $ 2,880 $
Community Programs $ (1,404,076) 1,679,411 $ - $ - $ - $ 275,335 $ 201 State Gas Tax 1,496,600 $ (1,112,893) $ (550,000) $ 64,500 $ - $ (101,793) $ 202 Measure A 720,400 $ (3,459) $ (550,000) $ - $ - $ 166,941 $ 203 NPDES 248,300 $ (769,544) $ - $ 531,244 $ - $ 10,000 $ 206 Park In Lieu 4,800 $ - $ - $ - $ - $ 4,800 $
221 Lighting District 862,700 $ (193,249) $ - $ - $ - $ 669,451 $ 222 Drainage District 163,040 $ (309,324) $ - $ 146,284 $ - $ - $ 234 County Measure W 308,000 $ (1,689) $ (220,000) $ - $ - $ 86,311 $ 290 ARPA- American Rescue Plan - $ - $ - $ - $ - $ - $
Infrastructure Programs $ (2,390,159) 3,803,840 $ (1,320,000) $ 742,028 $ - $ 835,710 $ 204 Rent Stabilization 614,860 $ (800,529) $ - $ - $ - $ (185,669) $ 207 Housing In Lieu 1,134,000 $ (2,872,920) $ - $ - $ - $ (1,738,920) $ 209 Housing Assistance Program 4,800 $ (6,346) $ - $ - $ - $ (1,546) $ 216 Commercial IF - $ - $ - $ - $ - $ - $
217 Residential IF - $ - $ - $ - $ - $ - $
218 Affordable Housing TOT 313,400 $ (28,917) $ - $ - $ - $ 284,483 $ 219 Measure HH 1,747,400 $ (848,121) $ - $ - $ - $ 899,279 $ 220 Lo-Mod Housing Successor 32,000 $ (1,618,476) $ - $ 397,410 $ - $ (1,189,066) $ 233 Silicon Valley Community - $ - - $ - $ - $ - $
Affordable Housing Programs $ (6,175,308) 3,846,460 $ - $ 397,410 $ - $ (1,931,439) $ Total Special Revenue Funds 9,329,711 $ (9,969,543) $ (1,320,000) $ 1,139,438 $ - $ (820,394) $ 301 Capital Improvement Fund 610,400 $ (394,766) $ - $ - $ - $ 215,634 $ 303 Capital Grant - $ - $ - $ - $ - $ - $
305 Parks & Trails 441,779 $ - $ - $ - $ - $ 441,779 $
306 Public Facilities 774,906 $ - $ - $ - $ - $ 774,906 $ 307 Transportation 278,251 $ (83,333) $ - $ - $ - $ 194,918 $ 308 RBD-I Storm D 360,352 $ (83,333) $ - $ - $ - $ 277,019 $ 309 RBD-O Storm D 3,200 $ - $ - $ - $ - $ 3,200 $
Capital Funds 2,468,888 $ (561,433) $ - $ - $ - $ 1,907,456 $ 510 Water Service Fund 524,720 $ (393,116) $ - $ - $ - $ 131,604 $ 511 Water Capital Fund 1,264,000 $ (325,000) $ - $ - $ - $ 939,000 $ 512 Water Meter Fund 22,400 $ (10,000) $ - $ - $ - $ 12,400 $ 513 Water Capacity Fee Fund 785,863 $ (83,333) $ - $ - $ - $ 702,530 $ Water Enterprise 2,596,983 $ (811,449) $ - $ - $ - $ 1,785,534 $ 520 Garbage Service Fund 3,283,200 $ (3,267,255) $ - $ - $ - $ 15,945 $ Total Enterprise 5,880,183 $ (4,078,704) $ - $ - $ - $ 1,801,479 $ City-Wide Total 52,421,360 $ (47,945,511) $ (1,320,000) $ 1,139,438 $ (1,139,438) $ 3,155,850 $

ELIMINATING ENTRY
General Fund
FY 2023-24 Proposed Budget Summary
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers Net Change
Fund Balance

11.1.a
Packet Pg. 104 Attachment: Resolution (2708 : FY2023-24 Budget Adoption) 4 of 4
Exhibit B
10 General Fund 62,691 $
213 Police Grants 12,709
231 CYSFF TOT 33,597
201 State Gas Tax 101,793
204 Rent Stabilization 185,669
207 Housing In Lieu 1,738,920
209 Housing Assistance Program 1,546
220 Lo-Mod Housing Successor 1,189,066
$ 3,325,991
FY 2022-23 Budgeted User of Reserve
Total User of Fund Reserves

11.1.a
Packet Pg. 105 Attachment: Resolution (2708 : FY2023-24 Budget Adoption)

PROPOSED BUDGET
2023-2024

C I T Y O F E A S T P A L O A L T O
2 4 1 5 U N I V E R S I T Y A V E N U E
E A S T P A L O A L T O , C A 9 4 3 0 3
C I T Y O F E P A . O R G 11.1.b
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Packet Pg. 107 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) i
FY 2023-2024 Budget Mayor
Lisa Gauthier
Vice Mayor
Antonio López
Council Members
Carlos Romero Ruben Abrica Martha Barragan

MISSION STATEMENT
The City of East Palo Alto provides responsive,
respectful, and efficient public services to enhance
the quality of life and safety for its multi-cultural
community.

11.1.b
Packet Pg. 108 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) ii
Executive Staff
Executive Staff
Melvin Gaines, City Manager
City Manager’s Office
John Le, City Attorney
City Attorney’s Office
James Colin, City Clerk/ Public Information Officer (PIO) City Clerk’s Office
Marie McKenzie, Administrative Services Director
Administrative Services Department
Tomohito Oku, Finance Director
Finance Department
Amy Chen, Community Development Director
Community and Economic Development
Humza Javed, Public Works Director
Public Works
Jeff Liu, Police Chief
Police Department

11.1.b
Packet Pg. 109 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Elected Officials……………………………………………………… i
Executive Staff………………………………..…………………………ii
Table of Contents………………………………….……………………iii
Introduction
City Manager’s Message………………………………..……………CM- 1
How to Use the Budget Document………………………………..…BD- 1
City Council Strategic Priorities and Goals
Strategic Goals and Priorities…………………………………………SP- 1
Organizational Summary
Master Organization Chart…………………………………..……… OS- 1
Nine-Year Position Summary……..................................................... OS- 2 Detail Position Listing…………………………………...…………..OS- 3
East Palo Alto at a Glance…………………………………...………OS- 4
Financial Summary
FY 2022-2023 Budget……………………………..………………..…FS- 1
General Fund Revenues by Major Category……………...………… FS- 18 General Fund Expenditures by Major Category……………...………FS- 19 Departmental Budgets
City Council…………………..…….….……………………..………DB- 1
City Attorney's Office……….…….….......…...……………….…… DB- 5 City Clerk's Office……..........…....…................................................. DB- 13 City Manager's Office……..........…....…........................................... DB- 19 City Manager's Office………………………..…………………… DB- 23
Human Resources…………….…………………………….………DB- 28
Administrative Services Department……………………..……….…DB- 34 Administration………………………..…………………………… DB- 38
Community Services and Recreation…………….…………………DB- 40
Finance Department……………………..………..…………..………DB- 46
Community and Economic Development …………………..………DB- 53
Administration………...……………………………………………DB- 57
Building Services……...………………….…………………………DB- 59
Housing and Economic Development……………..…...……..……DB- 63 Planning…….…………………..……………………..………..….DB- 73
Public Works…………………………..…………………………....…DB- 79
Administration….……………………………....………………….DB- 83
Engineering……………………………….....…………………...…DB- 89
Maintenance……………………………….....…………………… DB- 94
Police Department …………………………..………………………DB- 99
Administration………………………………………………………DB- 103
Investigations………………………………………………………DB- 107
Operations………………………………………………………… DB- 111
Non Departmental…………………………………………………… DB- 115
Miscellaneous……………………………………………………...……MISC- 1
Glossary………………...………...………………….…………………GLOS- 1
Table of Contents
iii

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Packet Pg. 111 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CM- 1

CITY OF EAST PALO ALTO

OFFICE OF THE CITY MANAGER
2415 UNIVERSITY AVENUE
EAST PALO ALTO, CA 94303
Honorable Mayor
Members of the City Council
Citizens of East Palo Alto, California
While California's COVID-19 State of Emergency ended on February 28, 2023, new economic challenges have emerged. On a macro-economic level, the City faces significant economic challenges, including supply chain disruption, wars in Ukraine, high inflation, and contractions in the local labor force, especially in the tech industry. Current economic concerns revolve around the Federal Reserve’s approach to the implementation of monetary policy to lower high inflation and how higher interest rates will impact the national and local economy over the next two years.

Aside from these broader economic challenges, the City also has faced other obstacles such as winter storms with flooding and power outages, housing and homelessness challenges as well as difficulties in staff recruitment and retention. These broader and local challenges can translate into increases in City expenditures as well as reductions in City revenue as regional layoffs, real estate market slow-downs and reductions in consumer confidence ripple through the local economy and reduce local tax revenues. Despite these challenges, we remain committed to our values of keeping residents safe and providing responsive, respectful and efficient public services.

Balancing the General Fund budget in the fiscal year 2023-24 will be a daunting task due to ongoing revenue disruption, mounting service cost pressures, and delayed infrastructure requirements. We expect to face persistent challenges in preserving existing service levels while coping with projected cost hikes. To ensure that we can continue to deliver essential City services such as clean drinking water, public safety, and public works services that East Palo Alto residents depend on, we must identify new locally controlled revenue options.

The City has recently embarked on robust engagement of the East Palo Alto community around our operational priorities and budget process. The City is currently conducting a community survey to assess the needs and priorities of East Palo Alto residents. Furthermore, we look forward to continuing to engage the community around identified budget priorities and City service needs through the remainder of the year to ensure the entire community will be educated on our budget process and will have an opportunity to weigh-in in the next year. City staff looks forward to updating the community and City Council on the results through the future City Council meeting.

Staff centered the proposed budget on the City’s Council FY 2023-2024 Priorities that were approved on April 18, 2023:

1. Promote Housing, Economic, and Workforce Development

2. Implement the Comprehensive Transportation and Mobility Plan

3. Promote Health and Public Safety

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Packet Pg. 112 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CM- 2

4. Ensure Our Financial and Organizational Health

5. Improve the City’s Water Infrastructure

6. Further Implement the City’s Facilities Master Plan

7. Enhance Community Services and Parks.

FY 2023-24 Proposed Budget
Description General
Fund
Restricted
Funds
Capital
Funds
Enterprise
Funds
TOTAL
CITY
FUNDS
Successor
Trust Fund
Total Revenues 34,743 9,330 2,469 5,880 52,421 3,576
Total Expenditures (33,336) (11,290) (561) (4,079) (49,266) (3,640) Net Sources / (Uses) 1,407 (1,960) 1,907 1,801 3,156 (64) Net Transfers (1,139) 1,139 - - - -
Change in Fund Balance 267 (820) 1,907 1,801 3,156 (64) FY 23-24 Proposed - Citywide Funds (In 000's)
The FY 2023-24 Proposed Budget (excluding Successor Trust) reflects total revenues of $52.4M and total expenditures of $49.3M resulting in positive net change in fund balance of $3.2M across all funds.

The proposed budget reflects budget reduction efforts by departments while keeping core service levels intact. In addition, the staff has made considerable strides to minimize the need for additional position requests in order to address the budget shortfall identified in the preliminary budget.

Proposed General Fund revenue projections in the fiscal year 2023-2024 will remain highly uncertain and include the following risk factors: 1) property tax funding shortfalls related to state legislation regarding school funding and in-lieu vehicle license fees, 2) lingering COVID-19 revenue losses in Transient Occupancy Tax (TOT), 3) slow growth in tax revenues due to continuing current economic environment, including high inflation and slowdown in the housing market, 4) lacking business diversity in tax revenue resources (Sales tax and TOT), 5) extended gaps in taxable development projects and uncertainty in timing of development completion due to underlying infrastructure challenges and the need to analyze and support the specific plan update in the Ravenswood Business District. On the contrary, positive news in revenue projections includes additional revenues from Measure L approved by voters in November 2022 raising approximately $0.9 million.

Proposed General Fund expenditures are projected to increase due to increases in personnel costs resulting from most recent labor contracts and other service cost increases reflecting high inflation.

The recent winter storms further proved how important it is to address our aging storm drains which are in desperate need of maintenance to reduce flooding and prevent pollution or sewage from entering our local waterways. The increase in storms and flooding we experienced this winter is expected to become more likely in the future, currently the City does not have local funding to be able to address our local storm drain maintenance needs.

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Packet Pg. 113 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CM- 3
We further note the proposed budget does not reflect: (1) unfunded Capital Improvement Plan project requests, a total of $4,4M schedule in FY2023-24, including Bell Street Park Improvements ($1.0M), San Francisquito Creek JPA Reach II additional funding ($1.5M), New Library Design ($1.1M – partially funded by State earmark and ARPA saving funds for $1.5M and $400K, respectively), Trash Capture Device Installation ($250K), Lease and Facility improvements for Police Department and Tate Office ($0.5M); and (2) funding of newly listed Strategic Priorities.

In conclusion, the proposed budget reflects our efforts to balance the budget while minimizing the impact on essential services. While the City of East Palo Alto is facing numerous challenges, including economic uncertainties, infrastructure needs, and staffing issues, we remain committed to providing our residents with the services they depend on. We are actively engaging with the community to identify new locally controlled revenue options and budget priorities that align with the City Council's goals and values.

Melvin E. Gaines Tomohito Oku
City Manager Finance Director

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Packet Pg. 115 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) BD- 1
How to Use the
Budget Document
The East Palo Alto Budget Document is a spending plan for the financial, human, and capital resources available to the City. Through these resources, services are provided to meet the needs of the East Palo Alto residents. The City Council and City staff address the community’s needs and priorities through the planning process which, in turn, culminates in the budget document as a fiscal spending plan. The budget document balances not only revenues and expenditures, but also community priorities and interests. The Budget Document is divided into eight major sections:
 City Manager’s Message
 How to Use the Budget Document
 City Council Strategic Plan
 Organizational Summary Information
 Financial Summary Information
 Departmental Budgets
 Miscellaneous
 Glossary
The City Manager’s Message
The City Manager’s Message provides a “big picture” summary for the fiscal budget period. It sets the context for budget decisions by describing community and economic conditions affecting the budget. It addresses major initiatives underway and challenges facing the City.

How to Use the Budget Document
Below is a summary of the sections within the document, describing how each section may be used effectively to understand the make-up of the document.

The City Council’s Strategic Plan
The City Council’s Strategic Plan sets the goals and objectives for the organization. It provides Council direction on a variety of initiatives to be accomplished over a two-year period and informs the work plan and budget of the Departments tasked with achieving the initiatives pending resource availability.

Organizational Summary Information
This section of the document contains useful reference information about the City and the organization, including an organizational chart, nineyear summary of the City’s employee authorized strength, “East Palo Alto at a Glance”, and East Palo Alto demographic statistics.

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Packet Pg. 116 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) BD- 2
Financial Summary Information
This section contains the FY 2023-24 Budget, by fund
and fund group-type, including narrative on the purpose of each budgeted fund and projection of fund balance:  Summary of Citywide Budget by Fund and Fund Group
 Historical Chart General Fund: o Revenues by Major Category o Expenditures by Major Category Departmental Budgets
This section contains the operating budget for all
departments and divisions. The following Departments
are presented: City Council, City Attorney, City Clerk, City Manager, Administrative Services, Finance,
Community and Economic Development, Public Works,
Police, Non-Departmental and Capital Improvement
Funding. The Departmental Budget section presents
financial figures by major revenue and expenditures
categories. Definitions of the four major expenditure
categories can be found in the Glossary. Local
government budgets are organized by fund to segregate
and account for restricted resources. Each fund is a
separate accounting entity. The General Fund provides
the majority of resources for the services that the City provides, including public safety, maintenance, and
general government functions needed to support direct
services to the community. This section also provides a historical view of revenue and expenditures, General
Fund sources and uses. Finally, this section includes the historical and current staffing for each department/
division along with a department organizational chart.

Miscellaneous
This section contains the major capital project funding, detail Measure P funding, the Appropriation Limit
calculated for FY2023-24 and the budget adoption
resolutions.

Glossary
This section provides definitions generally used in local, county, and state governments.

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Packet Pg. 117 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

CITY COUNCIL

STRATEGIC PRIORITIES
FY 2023-24 Budget
SP- 1
Priority A. Promote Housing, Economic & Workforce Development Goal A.1. Implement Measure HH Employment & First Source Hiring Programs Goal A.2. Continue to Implement the City’s Affordable Housing Strategy Goal A.3. Create an Economic Development Strategy w/ Focus on Small/Micro Businesses Priority B. Implement the Comprehensive Transportation and Mobility Plan Goal B.1. Implement the Comprehensive Transportation and Mobility Plan Goal B.2. Begin Construction of the University Overpass Project Goal B.3. Analyze Funding Strategies for Public Infrastructure Including Streets, Parks, & Utilities Priority C. Promote Health & Public Safety
Goal C.1. Enhance Flood Protection for Residents, Businesses, and Property Owners Goal C.2. Resolve Sanitation District Incorporation Matter Goal C.3. Develop a Community Emergency Preparedness and Education Initiative (e.g., CERT) Priority D. Ensure Our Financial & Organizational Health Goal D.1. Address Structural Deficit Through Fiscal Resiliency Measures Goal D.2. Develop 10-Year Financial Projections
Goal D.3. Plan and Implement an Enterprise Resource Planning (ERP) System Goal D.4. Focus on Staff Morale, Retention, Recruitment & Succession Planning Goal D.5. Develop an Information System Master Plan
Priority E. Improve the City’s Water Infrastructure
Goal E.1. Focus on Customer Service and Education
Goal E.2. Advance Key Water Infrastructure Projects
Priority F. Develop and Implement a Comprehensive Facilities Master Plan Goal F.1. Coordinate with County Library District Regarding the Potential New Library in East Palo Alto
Goal F.2. Investigate Potential Options for Developing County Vacant Property Located on Beech Street
Goal F.3. Develop a Detailed Strategy for the Location of the Future Police Department Goal F.4. Complete the City Hall Improvements Planning Process Priority G. Enhance Community Services and Parks for Residents Goal G.1. Foster Community Cultural Events & Activities Goal G.2. Completion and Implementation of the Parks Master Plan Goal G.3. Focus on Youth Engagement

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CITY COUNCIL

STRATEGIC PRIORITIES
FY 2023-24 Budget
SP- 2
Goal G.4. Engage with Community & Partner Agencies to Improve Educational Resources/ Outcomes

11.1.b
Packet Pg. 119 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) DEPT: COMMUNITY AND ECONOMIC DEVELOPMENT LEAD:
1 GOAL: Implement Measure HH Employment & First Source Hiring Programs STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1 Launch program, monitoring and evaluation through early 2025 Doing XXXXXXXXXXX 2 GOAL: Continue to Implement the City's Affordable Housing Strategy STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.1 Present TOPA/COPA recommendations and other opportunities to promote homeownership. Implement. Doing XXXXXX

2.2 Complete the updated Housing Element Doing X XXX

2.3 Implement the updated Housing Element NEW XXXXXXXX

2.4 Identify future pipeline affordable housing projects To Do X X X X X X X X X X 3 GOAL: Create an Economic Development Strategy Focusing on Small and Micro Businesses STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

3.1 Finalize opportunites for the 9,000 sq ft office building provided by the Sobrato Organization (on hold) To Do

3.2 Ensure regional partners are fully engaged with a supporting EPA businesses (and with 3.5) NEW XXXXXX

3.3 Work with local small and micro businesses to identify areas of greatest need and possible support NEW XXXXXX3.4 Begin providing greater support for local businesses NEW XXXXXX

3.5 Develop an Economic Development Strategy for Council consideration and adoption NEW XXXX FY 2024-25
FY 2023/24 EAST PALO ALTO CITY COUNCIL PRIORITY WORKPLAN PRIORITY: PROMOTE HOUSING, ECONOMIC & WORKFORCE DEVELOPMENT FY 2022-23 FY 2023-24 GOAL ACTIONS STATUS Chen
SP- 3

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Packet Pg. 120
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) DEPT: PUBLIC WORKS DEPARTMENT/COMMUNITY & ECONOMIC DEVELOPMENT LEAD:
1 GOAL: Implement the Comprehensive Transportation and Mobility Plan STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1 Implement Short-term Improvements as Identified in the Final Mobility Report Doing XX

1.2 Implement Mid-term Improvements as Identified in the Final Mobility Report Doing XXXX

1.3 Initiate a Parking Permit Pilot Program with an initial focus on addressing abandoned vehicles Doing XXX 2 GOAL: Begin Construction of the University Overpass Project STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.1 Bid Construction documents Doing
X

2.2 Construction phase of the project (Start to Finish) NEW XXXXXXXX 3 GOAL: Analyze Funding Strategies for Public Infrastructure Including Streets, Parks, & Utilities STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

3.1 Seek out design funding for East Bayshore sidewalk improvements from the SMCT A Done
X

3.2 Seek out construction funding for East Bayshore sidewalk improvements from the Congressional offic e Doing XXXXXX

3.3 Seek out Highway safety improvement grant funds for University Ave. safety improvements Done X

3.4 Continue work with consultant to identify and apply for grants Doing X XXXXXXX

3.5 Implement updated water capital surcharges NEW XXXXXX FY 2023-24
FY 2023/24 EAST PALO ALTO CITY COUNCIL PRIORITY WORKPLAN GOAL
ACTIONS PRIORITY: Implement the Comprehensive Transportation and Mobility Plan STATUS FY 2022-23 FY 2024-25 Javed
SP- 4

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Packet Pg. 121
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) DEPT: PUBLIC WORKS DEPARTMENT/POLICE DEPARTMENT/ADMINISTRATIVE SERVICES LEAD:
1 GOAL: Enhance Flood Protection for Residents, Businesses, and Property Owners STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1 Coordinate with partner agencies to fund and complete Reach 2 improvements NEW XXXXXXXX1.2 Implement $22M Safer Bay Project CALOES/FEMA Grant w/ San Francisquito Creek JPA - Design & Permittin g Doing XXXXXXXXX

1.3 Coordinate with City of Palo Alto on the Construction of Newell Street Bridge Replacement Project Doing XXXXXXXX 2 GOAL: Resolve Sanitary District Incorporation Matter STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.1 Implement necessary actions for LAFCo consideration of EPASD becoming subsidiary of the CIt y Doing
X
X XXX

2.1 Identify and carryout any next steps (To be specified) Doing XXXX 3 GOAL: Develop a Community Emergency Preparedness and Education Initiative (e.g., CERT) STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

3.1 Build EPA CERT Team Membership NEW XXXX3.2 Establish emergency communication protocols with community partners NEW XX3.3 Update Disaster Preparedness Plan NEW XXXX Javed/Liu/McKenzie
FY 2024-25
FY 2023/24 EAST PALO ALTO CITY COUNCIL PRIORITY WORKPLAN GOAL
ACTIONS PRIORITY: Promote Health & Public Safety STATUS FY 2022-23 FY 2023-24 SP - 5

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Packet Pg. 122
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) DEPT: FINANCE, CITY MANAGER'S OFFICE, PUBLIC WORKS, COMMUNITY DEVELOPMENT LEAD:
1 GOAL: Address Structural Deficit Through Fiscal Resiliency Measures STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1 Assess and Prepare for Utility Operational and Finance Needs Doing X XXXXXXXXXXX

1.2 Analyze needs, strategies and community support for funding public infrastructure improvements Doing XXX1.3 Perform Impact Fee Nexus Study NEW XX 2 GOAL: Develop 10 Year Financial Projections STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.1 Issue RFP to Hire Financial Projection Consultant Doing X XXX2.2 Perform Study of Financial Projections To Do X X2.3 Prepare and Present Projections To Do X 3 GOAL: Plan and Implement an Enterprise Resource Planning (ERP) System STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

3.1 ERP Implementation Doing X XXXX3.2 ERP Fully Implemented To Do X 4 GOAL: Focus on Staff Morale, Retention, Recruitment & Succession Planning STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

4.1 Update the City's Personnel Policies and Procedures NEW XXX

4.2 Launch Health & Wellness Initiatives NEW XX4.3 Update the City's recruiment process NEW X

4.4 Develop and Launch an Employee Training and Development Program NEW XX

4.5 Issue RFP for Compensation Study NEW
X
5 GOAL: Develop and Information Systems Master Plan STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

5.1 Coordinate continuation or completion of contract services provided by Redwood Cit y NEW XXXX

5.2 Develop a citywide Information Systems Master Plan To Do XXXX Oku/Gaines
FY 2024-25
FY 2023/24 EAST PALO ALTO CITY COUNCIL PRIORITY WORKPLAN GOAL
ACTIONS PRIORITY: Ensure Our Financial & Organizational Health STATUS FY 2022-23 FY 2023-24 SP- 6

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Packet Pg. 123
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) DEPT: PUBLIC WORKS DEPARTMENT/CITY MANAGER'S OFFICE LEAD:
1 GOAL: Focus on Customer Service and Education STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1 Improve Veolia's voicemail/messaging priority Done
X

1.2 Train contractors and improve customer notification (Veolia) Done X

1.3 Plan for Water System Operations in 2025 NEW XXXX
2 GOAL: Advance Key Water Infrastructure Projects STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.1 Complete Construction of 12" Water Transmission Line on University Ave. (instead of Cooley Ave.) Doing X

2.2 Complete Construction of Water Intertie at University/Woodland with Palo Alto To Do X2.3 Identify Potential Locations for Additional Water Storage Doing XXX2.4 Investigate State and Federal Water Funding Opportunities, including WIFIA and DWSRF To Do X2.5 Proactively Design Additional Water Improvement Projects Doing XXXXXXXXXXX

2.6 Complete construction of 12" watermain on Weeks Street NEW X

2.7 Complete the woodland watermain gap project in addition to the water intertie NEW X
FY 2023/24 EAST PALO ALTO CITY COUNCIL PRIORITY WORKPLAN GOAL
ACTIONS PRIORITY: Improve the City's Water Infrastructure STATUS FY 2022-23 FY 2023-24 Javed/Gaines
FY 2024-25
SP- 7

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Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) DEPT: PUBLIC WORKS DEPARTMENT/CITY MANAGER'S OFFICE LEAD:
1 GOAL: Coordinate with the Library District to Advance a New Library for East Palo Alto STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1 Complete required land acquisition Done X XX1.2 Identify and implement comprehensive funding strateg y Doing XXXXX

1.3 Initiate & oversee facility planning and design Doing XXXXX 2 GOAL: Investigate Potential Options for Developing County Vacant Property Located on Beech Street STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.1 Endeavor to Finalize Acquisition of County-Owned Beech Street Property To Do X X2.2 Advance Parks Master Plan Vision for MLK Jr. Park and Beech Street Property NEW XXXXXXX 3 GOAL: Develop a Detailed Strategy for the Location of the Future Police Department STATUS Q1 Q2 X Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

3.1 Conclude consideration of potential siting of interim or long-term Police Department Doing XXX

3.2 Provide the Council with update and recommendations for Police Department after October 202 5 Doing
X

3.3 Implement necessary actions to enable police department operations after October 202 5 NEW XXXXXXXXX
4 GOAL: Complete the City Hall Improvements Planning Process STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

4.1 Resolve County consideration of continued City use of 2415 University for exclusive or shared us e Doing XX

4.2 Investigate potential partnership opportunities with future development projects Doing XXXXX4.3 Provide interim improvements to City Council chambers - CANCELE D Doing

4.4 Bid and construct the City Hall TI at the former police evidence roo m To Do XXXXX
FY 2023/24 EAST PALO ALTO CITY COUNCIL PRIORITY WORKPLAN GOAL
ACTIONS PRIORITY: Develop and Implement a Comprehensive Facilities Master Plan STATUS FY 2022-23 FY 2023-24 Javed/Gaines
FY 2024-25
SP- 8

11.1.b
Packet Pg. 125
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) DEPT: ADMINISTRATIVE SERVICES DEPT/CITY MANAGER'S OFFICE LEAD:
1 GOAL: Foster Community Cultural Events & Activities STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1 Facilitate City Sponsored Events on On-going Basis Doing X XXXXXXXXXXX

1.2 Consider organizational structure and external partnerships to best provide cultural events and activities NEW 2 GOAL: Completion and Implementation of the Parks Master Plan STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.1 City Council Consideration of Final Park's Master Plan Done X

2.2 Draft Recommendations Regarding: Potential Dog Park, Security, & Wi-Fi as Part of Parks Master Plan Done X XX

2.3 Advance Design of Martin Luther King, Jr. (MLK) Park Expansion Project Doing X XX

2.4 Advance Design of Bell Street Park Project in Partnership with Magical Bridge Foundation Doing X XX2.5 Consider a pilot dog park program at an existing park or under utlility power lines NEW XX 3 Focus on Youth Engagement STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

3.1 Consider stablishing a Youth Commission and/or youth appointees to other City Boards and Commissions NEW XX

3.2 Strengthen partnerships with outside organizations for comprehensive focus on youth issues and needs NEW XXXX 4 GOAL: Engage with Community & Partner Agencies to Improve Educational Resources/Outcomes STATUS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

4.1 Explore Partnerships with School District & Other Entities Regarding Potential Joint Us e Doing XX

4.2 Build Relationships with Foundations and Other Philanthropic Organizations to Identify Partnerships Doing XXXXXXXXX FY 2023/24 EAST PALO ALTO CITY COUNCIL PRIORITY WORKPLAN GOAL
ACTIONS PRIORITY: Enhance Community Services and Parks for Residents STATUS FY 2020-2021 FY 2021-2022 McKenzie/Gaines
FY 2022-2023
SP- 9

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Packet Pg. 126
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

CITY OF EAST PALO ALTO

CITY ORGANIZATIONAL CHART
FY 2023-2024 Budget
DB-67

RESIDENTS OF EAST PALO ALTO

CITY COUNCIL

BOARDS & COMMISSIONS
 Planning Public Works & Transportation Rent Stabilization Board Senior Advisory Board CITY ATTORNEY’S OFFICE CITY MANAGER’S OFFICE

FINANCE
POLICE
Administration
Operations
Investigations

ADMINISTRATIVE SERVICES
Administration
Community Services & Recreation
Information Technology

PUBLIC WORKS
Administration
Engineering
Maintenance

COMMUNITY & ECONOMIC

DEVELOPMENT
Administration
Building/Planning
Housing/ Econ Development
OS -1

11.1.b
Packet Pg. 127
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Proposed
Policy
&
Executive
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Clerk's Office 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 City Attorney's Office 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 City Manager's Office 4.00 5.00 3.00 3.00 3.00 3.00 4.00 4.00 4.00 City Manager - Human Resources - - - - - 2.00 2.00 2.00 2.00 City Manager - Rent Stabilization 2.00 2.00 - - - - - - - City Manager - Community Programs - - - - - - - - -
Sub-Total 15.00 16.00 12.00 12.00 12.00 14.00 15.00 15.00 15.00 Administrative Support Services Finance Department 5.00 6.00 6.00 6.00 7.00 7.00 6.00 7.00 7.00 Administrative Services Admin 1.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 Community Services Division 4.38 4.38 4.15 4.15 4.15 3.65 5.15 5.15 5.15 Human Resources 2.00 2.00 2.00 2.00 2.00 - - - -
Sub-Total 12.38 15.38 15.15 15.15 16.15 13.65 14.15 14.15 14.15 Community and Economic Development Administration Division 4.00 4.00 5.90 6.45 6.45 3.50 4.00 4.00 4.00 Building Services Division 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Planning Division 3.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 Housing/Economic Division - - 3.00 3.00 3.00 3.00 4.00 4.00 4.00 Senior Services Division - - - - - - - - -
Sub-Total 13.00 15.00 19.90 20.45 20.45 17.50 19.00 20.00 20.00 Public Safety Administration Division 8.00 8.00 9.00 9.00 9.00 9.00 9.00 9.00 8.00 Investigations Division 8.00 8.25 8.25 8.25 11.15 11.15 11.15 10.25 11.25 Operations Division 29.50 29.00 29.00 29.00 27.00 28.00 28.00 30.35 30.35 Sub-Total 45.50 45.25 46.25 46.25 47.15 48.15 48.15 49.60 49.60 Public Works Administration Division 2.00 2.00 2.00 2.00 2.00 4.50 4.45 4.45 4.45 Engineering Division 5.00 5.00 5.00 5.00 5.00 3.75 5.00 5.00 5.00 Maintenance Division 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 Sub-Total 19.00 19.00 19.00 19.00 19.00 20.25 21.45 21.45 21.45 TOTAL POSITIONS 104.88 110.63 112.30 112.85 114.75 113.55 117.75 120.20 120.20 OS-2

CITY OF EAST PALO ALTO

NINE-YEAR POSITION SUMMARY
FY 2015-16 to FY 2023-24

11.1.b
Packet Pg. 128
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) FTE's
FY 2023-24
FTE's
FY 2023-24
City Council Community and Economic Development (Con'd) a. Council Member 5.00 Housing/Econ Division
a. Housing & Econ Dev Manager 1.00
City Attorney's Office b. RSP Administrator 1.00
a. City Attorney 1.00 c. Housing Project Manager 1.00
b. Deputy City Attorney I/II 1.00 d. RSP Coordinator II 1.00 c. Legal Assistant 1.00 4.00

3.00 Planning Division
City Manager's Office a. Planning Manager 1.00
a. City Manager 1.00 b. Senior Planner 1.00
b. Assistant City Manager 1.00 c. Associate Planner 1.00 c. Assistant to the City Manager (1-yr Term)1 n/a d. Planning Technician 1.00 d. Senior Management Analyst 1.00 e. Assistant/Associate Planner 1.00 e. Executive Assist. to City Mgr 1.00 5.00
Human Resources Division Public Works
a. Human Resources Manager Adminstration Division
b. Human Resources Technician I/II2 1.00 a. Public Works Director 1.00

1.00 b. Administrative Assistant 1.00

6.00 c. Management Analyst II 1.00
City Clerk's Office d. Environmental Service Aide 1.45
a. City Clerk- PIO 1.00 4.45
Engineering Division
Administrative Services a. City Engineer 1.00
Administration Division b. Senior Engineer 1.00
a. Administrative Svcs Director 1.00 c. Associate Engineer 1.00 b. Office Assistant 1.00 d. Assistant/Associate Engineer 1.00

2.00 e. Public Works Supervisor 1.00
Community Services Division 5.00
a. Community Services Manager 1.00 Maintenance Division b. Recreation Coordinator 1.00 a. Maintenance Manager 1.00 c. Recreation Leader II (2 PT) 0.90 b. Maintenance Worker I 3.00 d. Van Driver (2 PT) 1.00 c. Maintenance Worker II 5.00 e. Nutrition Site Supervisor (1 PT) 0.75 d. Maintenance Worker III 2.00 f. Kitchen Aide (1 PT) 0.50 e. Secretary I 1.00

5.15 12.00
Finance Police
a. Finance Director 1.00 Administration Division
b. Financial Services Manager 1.00 a. Police Chief 1.00 c. Accountant Senior3 1.00 b. Administrative Manager 1.00 d. Accountant I/II 1.00 c. Management Analyst II (1-yr Term)5 n/a e. Accounting Technician I/II 2.00 d. Police Records Supervisor 1.00 f. Grant Coordinator 1.00 e. Police Record's Clerk I/II 4.00

7.00 f. Police Property Officer 1.00

8.00 Community and Economic Development
Administration Division Investigations Division
a. Community & Economic Dev Director 1.00 a. Commander 1.00 b. Management Analyst II 1.00 b. Police Officer 4.00
c. Secretary II 1.00 c. Community Services Officer 3.00 d. Office Assistant 1.00 d. Community Services Officer (4 PT) 1.80

4.00 e. Cold Case Investigator 0.45
Building Services Division f. Police Sergeant 1.00
a. Chief Building Official 1.00 11.25
b. Building Inspector II 1.00 Operations Division
c. Building Permit Technician 2.00 a. Commander 1.00
d. Code Enforcement/Bldg Inspector Hybrid4 1.00 b. Police Sergeant 4.00 e. Code Enforcement Officer II 2.00 c. Police Officer 24.00

7.00 d. Reserve Officer (3PT) 1.35 1
Extending the term for another year (subject to Council approval) 30.35 2 Converting HR Technician to HR Technician I/II (subject to Council approval) 3 Converting Sr. Management Analyst to Accountant Senior (subject to Council approval) Total Authorized FTE's 120.20 4 Converting Code Enforcement Officer II to Code Enforcement/Bldg Inspector Hybrid (subject to Council approval) 5 1 year limited position (subject to Council approval)

CITY OF EAST PALO ALTO
Detail Position Listing
OS- 3

11.1.b
Packet Pg. 129 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) East Palo Alto at
a Glance

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

For most of its history, the area regarded as East Palo Alto was 13 square miles and part of unincorporated San Mateo County. As such, it did not have an official boundary until it incorporated in 1983. However, the area was much larger than the City’s current 2.5 square miles. Large tracts of land were annexed by surrounding cities from the late 1940’s to the early 1960’s. This trend ended in 1983 when the residents incorporated to gain local control over land use and municipal services.

The original inhabitants were Ohlone/Costanoan Native Americans. Spanish ranchers took over, followed by an influx of speculators and settlers of European origin. For a time, Asian and Italian flower growers preceded the flood of middle-class migrants drawn to post-war housing developments. East Palo Alto later became the largest African American community on the Peninsula. Today, due to significant demographic changes during the last decade, the City possesses a broad multi-ethnic profile that includes a majority Latino and growing Pacific Island population.

Trade has alternately focused on ranching, transportation and shipping, brick manufacturing, farming, servicing travelers of Bayshore Highway and Dumbarton Bridge, and flower growing. At present there is a mix of industrial, agricultural, and commercial businesses.

The signs of continuing and rapid transition are evident; and none more so than the rapid changes brought about by proximity to the most successful businesses in Silicon Valley. However, some things have remained constant, namely the characteristics that have always attracted people to the area: multi-cultural acceptance; a beautiful, rural-like setting; centralized location; proximity to transportation and the San Francisco Bay; as well as some of the most enviable weather in the nation.

Today, the City of East Palo Alto is closer than ever to realizing its potential.

As the City continues to make progress and become more self-sufficient, there is evidence that East Palo Alto will be able to strike a harmonious balance between a goal of establishing a sound commercial base and the dream of an idyllic and welcoming community.

OS-4

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Packet Pg. 130 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

CITY GEOGRAPHY
The City of East Palo Alto is located approximately 29
miles south of San Francisco and 19 miles north of San
Jose. The City occupies 2.5 square miles. The latest
estimates place the City’s population at 28,586.

CITY AUTHORITY
The City of East Palo Alto is a general law city under
California State law and its rights, powers, privileges, authority, and functions are established through the
State constitution and the State Law. The powers
granted to California cities by state statute include the power to: sue and be sued; purchase, receive by gift or bequest and hold land, make contracts and purchases
and hold personal property necessary to the exercise of its powers, manage, sell, lease, or otherwise dispose of its property as the interest of its inhabitants require; levy and collect taxes authorized by law and exercise such
other and further powers as may be especially conferred by law or as may be necessarily implied from those
expressed.

East Palo Alto is a General Law Council/ Manager City
governed by a five-member City Council with a
Council elected Mayor. The City incorporated July 1,
1983.

The City provides a range of services to its residents
including public protection through the Police
Department, the construction and maintenance of
streets and infrastructure, community and economic
development affordable housing programs, financial
management, and administrative and community
services.

THE CITY COUNCIL
The members of the City Council are elected by the
voters to serve overlapping four-year terms. The Mayor
is elected by, and from, the City Council for a one-year term. The City Council sets policy and exercises the
legislative authority of the City. By City Ordinance, the City Council holds meetings on the first and third
Tuesdays of every month and at other times as, in the
opinion of the City Council, the public interest may
require.

The current City Council members and the dates upon
which their respective terms expire are as follows:

Mayor: Lisa Gauthier Nov. 2024
Vice Mayor: Antonio Lopez Nov. 2024
Council Member: Ruben Abrica Nov. 2026
Council Member: Carlos Romero Nov. 2024
Council Member: Martha Barragan Nov. 2026

ADMINISTRATION AND

MANAGEMENT
East Palo Alto is a Council-Manager form of government.

The City Council appoints the City Attorney and the City Manager. The City Manager appoints all other City
employees and is charged with overseeing the City’s daily operations. Many boards, commissions, and committees
assist the City Council and Administration in carrying out various aspects and functions of city government.

OS- 5

11.1.b
Packet Pg. 131 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Demographic Information
Land Area: 2.5 square miles
Populationi
1990 23,570
2000 29,506
2005 29,431
2010 28,155
2015 29,137
2020 30,034
2023 Projected 28,586
Population by Gender i
Female 51.2%
Male 48.8%
Population by Age Group i
Under 5 years 5.6%
5 to 9 years 7.0%
10 to 14 years 6.2%
15 to 19 years 7.5%
20 to 24 years 7.0%
25 to 29 years 9.3%
30 to 34 years 9.1%
35 to 39 years 7.9%
40 to 44 years 6.8%
45 to 49 years 7.2%
50 to 54 years 6.1%
55 to 59 years 5.2%
60 to 64 years 6.8%
65 to 69 years 2.8%
70 to 74 years 1.9%
75 to 79 years 1.4%
80 to 84 years 1.7%
85 years and over 0.6%
Racial Composition i
Hispanic or Latino 59.9%
Black or African Amer 10.7%
White 13.7%
Asian 6.5%
Pacific Islander 6.3%
Two or More 9.6%
Other 2.3%
i
https://www.census.gov/
Level of Educational Attainment of Persons 25 years
and older i
No High School degree 26.3%
High School degree or equivalent 21.2%
Some college, no degree 20.8%
Bachelor’s degree 19.5%
Post-grad degree 12.3%
Per Capital Personal Income i
$36,505
Median Sales Price for Single Family Residencesii
($1,062,500 in 2022)
ii San Mateo County Associations of Realtors
‐
200,000
400,000
600,000
800,000
1,000,000
1,200,000
200820092010201120122013201420152016201720182019202020212022 Median Price
OS- 6

11.1.b
Packet Pg. 132 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

FINANCIAL SUMMARY
FY 202-202 Budget
The Financial Summary section contains the following adopted budget and financial summary information:

Budget Information:
x Citywide Budget Overview
o FY 202-2 Budget by Fund Category
x General Fund Overview
o FY 202- General Fund and Internal Reserve Funds Budget x Special Revenue Funds Overview
o FY 202-2 Special Revenue Funds Budget
)< Community Programs Budget
)< Housing Programs Budget
)< Transportation and Infrastructure Programs Budget
x Capital Funds Overview
o FY 202-2 Capital Funds Budget
x Enterprise Funds Overview
o FY 202-2 Enterprise Fund Budget
Other Financial Information:
x General Fund Revenues by Major Category
x General Fund Expenditures by Major Category
FS- 1

11.1.b
Packet Pg. 133 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

CITYWIDE BUDGET OVERVIEW
The Citywide budget overview provides a one-page view across all the various fund-types operating within the City. This view gives a full perspective of total revenues by character and total expenditures by department across all City funds. The City operates the following fund-group types:
• General and Internal Reserve Funds
• Special Revenue Funds
• Capital Projects Funds
• Enterprise Funds
• Successor Agency Trust Fund
FS- 2

11.1.b
Packet Pg. 134 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) General Fund and
Internal Reserves
Special
Revenue
Funds
Capital
Improvement
Funds
Enterprise Funds City Total Successor
Trust Fund
GRAND
TOTAL
Revenues
Property Tax 17,010,000 955,340 - - 17,965,340 3,562,862 21,528,202 Sales Tax 6,030,000 - - - 6,030,000 - 6,030,000
Utility Users Tax 1,726,043 - - - 1,726,043 - 1,726,043 Transient Occupancy Tax 2,200,000 550,000 - - 2,750,000 - 2,750,000 Other State and Local Taxes 2,688,735 4,082,000 - - 6,770,735 - 6,770,735 Franchise Fees 1,158,000 - - - 1,158,000 - 1,158,000
Licenses, Fees, and Permits 432,600 787,000 1,851,908 777,863 3,849,371 - 3,849,371 Fines and Forfeitures 225,000 2,500 - - 227,500 - 227,500 Use of Money and Property 652,000 485,120 316,980 638,320 2,092,420 12,800 2,105,220 Grants and Intergovernmental 55,000 2,310,251 - - 2,365,251 - 2,365,251 Charges for Current Services 818,200 7,500 - 4,188,000 5,013,700 - 5,013,700 Other Miscellaneous 1,747,000 150,000 300,000 276,000 2,473,000 - 2,473,000 Total Revenues 34,742,578 9,329,711 2,468,888 5,880,183 52,421,360 3,575,662 55,997,022 Expenditures
City Council 171,150 - - - 171,150 - 171,150
City Attorney 1,031,428 35,000 - - 1,066,428 7,500 1,073,928 City Clerk 361,068 - - - 361,068 - 361,068
City Manager 2,392,293 - 5,625 49,098 2,447,016 - 2,447,016 Administrative Services 1,810,336 929,350 100,000 - 2,839,686 - 2,839,686 Finance 1,278,852 9,067 129,141 22,000 1,439,060 28,029 1,467,089 Community Development 5,200,014 5,886,846 - - 11,086,860 - 11,086,860 Public Works 4,700,398 1,567,934 326,666 500,786 7,095,784 - 7,095,784 Police 15,407,077 326,229 - - 15,733,306 - 15,733,306
Non-Departmental - -
Capital/Technology - 1,320,000 - - 1,320,000 - 1,320,000 Debt Service - - - - - 3,591,411 3,591,411
Insurance and Settlements 854,684 - - - 854,684 - 854,684 Other Non-Departmental 1,041,965 452,594 - 3,368,500 4,863,059 - 4,863,059 Overhead Allocation (913,434) 762,522 - 138,319 (12,593) 12,593 - Total Expenditures 33,335,831 11,289,542 561,432 4,078,703 49,265,508 3,639,533 52,905,041 Net Sources / (Uses) 1,406,747 (1,959,831) 1,907,456 1,801,480 3,155,852 (63,871) 3,091,981 Other Financing Sources / (Uses)
Transfers In - 1,139,438 - - 1,139,438 - 1,139,438
Transfers Out (1,139,438) - - - (1,139,438) - (1,139,438) Net Operating Transfers (1,139,438) 1,139,438 - - - - - Change in Fund Balance 267,309 (820,393) 1,907,456 1,801,480 3,155,852 (63,871) 3,091,981 Other Changes 1,857,000 - - - 1,857,000 - 1,857,000
Projected Fund Balance
July 01, 2023 Balance* 19,130,000 28,742,000 11,502,000 12,748,000 72,122,000 (16,762,000) 55,360,000 June 30, 2024 Balance 21,254,309 27,921,607 13,409,456 14,549,480 77,134,852 (16,825,871) 60,308,981 *Excludes certain assets, reserves, and commitments.

CITY OF EAST PALO ALTO
FY 2023-2024 BUDGET BY FUND CATEGORY
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11.1.b
Packet Pg. 135 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

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

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

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

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

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

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

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

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

FS- 4

11.1.b
Packet Pg. 136 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) General Fund
F010
Info Services
Reserve
F011
Equipment
and Vehicle
Reserve F012
Insurance
Reserve F013
Development
Pass Through
F017
Eliminating Total
Revenues
Property Tax 17,010,000 - - - - - 17,010,000
Sales Tax 6,030,000 - - - - - 6,030,000
Utility Users Tax 1,726,043 - - - - - 1,726,043
Transient Occupancy Tax 2,200,000 - - - - - 2,200,000
Other State and Local Taxes 2,688,735 - - - - - 2,688,735 Franchise Fees 1,158,000 - - - - - 1,158,000
Licenses, Fees, and Permits 432,600 - - - - - 432,600
Fines and Forfeitures 225,000 - - - - - 225,000
Use of Money and Property 652,000 - - - - - 652,000
Grants and Intergovernmental 55,000 - - - - - 55,000
Charges for Current Services 818,200 - - - - 818,200
Other Miscellaneous 207,000 - - - 1,540,000 - 1,747,000 Total Revenues 33,202,578 - - - 1,540,000 - 34,742,578
Expenditures
City Council 171,150 - - - - 171,150
City Attorney 976,428 - - 55,000 - 1,031,428
City Clerk 258,468 102,600 - - - 361,068
City Manager 2,362,293 30,000 - - - 2,392,293
Administrative Services 1,379,569 430,767 - - - 1,810,336 Finance 1,098,977 179,875 - - - 1,278,852
Community Development 3,680,514 14,500 105,000 - 1,400,000 5,200,014 Public Works 4,479,898 165,500 45,000 - 10,000 4,700,398 Police 15,228,577 - 178,500 - - 15,407,077
Non-Departmental
Major Capital - - - - -
Debt Service - - - - -
Insurance and Settlements - - - 854,684 854,684
Other Non-Departmental 738,465 303,500 - - 1,041,965
Overhead Allocation (913,434) - - - (913,434)
Total Expenditures 29,460,905 1,226,742 328,500 909,684 1,410,000 - 33,335,831 Net Sources / (Uses) 3,741,673 (1,226,742) (328,500) (909,684) 130,000 - 1,406,747 Other Financing Sources / (Uses)
Transfers In - 1,226,742 328,500 909,684 - (2,464,926) - Transfers Out (3,604,364) - - - - 2,464,926 (1,139,438) Net Operating Transfers (3,604,364) 1,226,742 328,500 909,684 - - (1,139,438) Change in Fund Balance 137,309 - - - 130,000 - 267,309
Other Changes 1,987,000 - - - (130,000) - 1,857,000
Projected Fund Balance
July 01, 2023 Balance* 19,130,000 - - - - - 19,130,000
June 30, 2024 Balance 21,254,309 - - - - - 21,254,309
*Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2023-2024 GENERAL FUND BUDGET
FS- 5

11.1.b
Packet Pg. 137 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

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

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

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

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

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

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

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

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

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

Housing in Lieu
FS- 6

11.1.b
Packet Pg. 138 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

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

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

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

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

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

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

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

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

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

Measure A
FS- 7

11.1.b
Packet Pg. 139 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

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

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

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

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

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

FS- 8

11.1.b
Packet Pg. 140 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Community
Programs
Housing
Programs
Transportation
and
Infrastructure
Programs
Total
Revenues
Property Tax - - 955,340 955,340
Sales Tax - - - -
Utility Users Tax - - - -
Transient Occupancy Tax 275,000 275,000 - 550,000
Other State and Local Taxes - 1,677,000 2,405,000 4,082,000 Franchise Fees - - - -
Licenses, Fees, and Permits - 643,000 144,000 787,000
Fines and Forfeitures - 2,500 - 2,500
Use of Money and Property 36,160 248,960 200,000 485,120 Grants and Intergovernmental 1,218,251 1,000,000 92,000 2,310,251 Charges for Current Services - - 7,500 7,500
Other Miscellaneous 150,000 - - 150,000
Total Revenues 1,679,411 3,846,460 3,803,840 9,329,711
Expenditures
City Council - - - -
City Attorney - 35,000 - 35,000
City Clerk - - - -
City Manager - - - -
Administrative Services 929,350 - - 929,350
Finance - 3,689 5,378 9,067
Community Development 100,500 5,786,346 - 5,886,846
Public Works - - 1,567,934 1,567,934
Police 326,229 - - 326,229
Non-Departmental - - - -
Capital/Technology - - 1,320,000 1,320,000
Debt Service - - - -
Insurance and Settlements - - - -
Other Non-Departmental - 11 452,583 452,594
Overhead Allocation 47,997 350,262 364,263 762,522
Total Expenditures 1,404,076 6,175,308 3,710,158 11,289,542 Net Sources / (Uses) 275,335 (2,328,848) (1,959,831) 93,682 Other Financing Sources / (Uses)
Transfers In - 397,410 742,028 1,139,438
Transfers Out - - - -
Net Operating Transfers - 397,410 742,028 1,139,438
Change in Fund Balance 275,335 (1,931,438) 835,710 (820,393) Other Changes - - - -
Projected Fund Balance
July 01, 2023 Balance* 1,794,000 12,433,000 14,515,000 28,742,000 June 30, 2024 Balance 2,069,335 10,501,562 15,350,710 27,921,607 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2023-2024 SPECIAL REVENUE FUNDS BUDGET
FS- 9

11.1.b
Packet Pg. 141 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Public Safety
Grants
F213
Federal and State
Grants F215
Local
Grants
F230
CYSFF
TOT F231
Measure C
F232
ARPA
F290
Total
Community
Programs
Revenues
Property Tax - - - - - - -
Sales Tax - - - - - - -
Utility Users Tax - - - - - - -
Transient Occupancy Tax - - - 275,000 - - 275,000
Other State and Local Taxes - - - - - - -
Franchise Fees - - - - - - -
Licenses, Fees, and Permits - - - - - - -
Fines and Forfeitures - - - - - - -
Use of Money and Property 3,520 7,360 8,000 14,400 2,880 - 36,160 Grants and Intergovernmental 160,000 488,251 570,000 - - - 1,218,251 Charges for Current Services - - - - - - -
Other Miscellaneous - - 150,000 - - - 150,000
Total Revenues 163,520 495,611 728,000 289,400 2,880 - 1,679,411 Expenditures
City Council - - - - - - -
City Attorney - - - - - - -
City Clerk - - - - - - -
City Manager - - - - - - -
Administrative Services - 84,350 570,000 275,000 - - 929,350 Finance - - - - - - -
Community Development - 100,500 - - - - 100,500
Public Works - - - - - - -
Police 176,229 - 150,000 - - - 326,229
Non-Departmental -
Capital/Technology - - - - - - -
Debt Service - - - - - - -
Insurance and Settlements - - - - - - -
Other Non-Departmental - - - - - - -
Overhead Allocation - - - 47,997 - - 47,997
Total Expenditures 176,229 184,850 720,000 322,997 - - 1,404,076 Net Sources / (Uses) (12,709) 310,761 8,000 (33,597) 2,880 - 275,335 Other Financing Sources / (Uses)
Transfers In - - - - - - -
Transfers Out - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance (12,709) 310,761 8,000 (33,597) 2,880 - 275,335 Other Changes - - - - - - -
Projected Fund Balance
July 01, 2023 Balance* 220,000 (220,000) 664,000 1,117,000 13,000 - 1,794,000 June 30, 2024 Balance 207,291 90,761 672,000 1,083,403 15,880 - 2,069,335 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2023-2024 COMMUNITY PROGRAMS BUDGET
FS- 10

11.1.b
Packet Pg. 142 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Rent
Stabilization
F204
Housing In
Lieu
F207
Housing
Assistance
F209
Housing
Commercial
Impact F216
Housing TOT
F218
Measure HH
F219
Housing
Successor
F220
Silicon Valley
Community
F233
Total
Revenues
Property Tax - - - - - - - - -
Sales Tax - - - - - - - - -
Utility Users Tax - - - - - - - - -
Transient Occupancy Tax - - - - 275,000 - - - 275,000
Other State and Local Taxes - - - - - 1,677,000 - - 1,677,000 Franchise Fees - - - - - - - - -
Licenses, Fees, and Permits 605,000 38,000 - - - - - - 643,000 Fines and Forfeitures 2,500 - - - - - - - 2,500
Use of Money and Property 7,360 96,000 4,800 - 38,400 70,400 32,000 - 248,960 Grants and Intergovernmental - 1,000,000 - - - - - - 1,000,000 Charges for Current Services - - - - - - - - -
Other Miscellaneous - - - - - - - - -
Total Revenues 614,860 1,134,000 4,800 - 313,400 1,747,400 32,000 - 3,846,460 Expenditures
City Council - - - - - - - - -
City Attorney - - - - - - 35,000 - 35,000
City Clerk - - - - - - - - -
City Manager - - - - - - - - -
Administrative Services - - - - - - - - -
Finance - - - - - 3,689 - - 3,689
Community Development 528,331 2,840,950 4,655 - - 844,421 1,567,989 - 5,786,346 Public Works - - - - - - - - -
Police - - - - - - - - -
Non-Departmental
Capital/Technology - - - - - - - - -
Debt Service - - - - - - - - -
Insurance and Settlements - - - - - - - - -
Other Non-Departmental - - - - - 11 - - 11
Overhead Allocation 272,197 31,970 1,691 - 28,917 - 15,487 - 350,262 Total Expenditures 800,528 2,872,920 6,346 - 28,917 848,121 1,618,476 - 6,175,308 Net Sources / (Uses) (185,668) (1,738,920) (1,546) - 284,483 899,279 (1,586,476) - (2,328,848) Other Financing Sources / (Uses)
Transfers In - - - - - - 397,410 - 397,410
Transfers Out - - - - - - - - -
Net Operating Transfers - - - - - - 397,410 - 397,410
Change in Fund Balance (185,668) (1,738,920) (1,546) - 284,483 899,279 (1,189,066) - (1,931,438) Other Changes - - - - - - - - -
Projected Fund Balance
July 01, 2023 Balance* 282,000 3,628,000 329,000 - 2,801,000 4,093,000 1,412,000 (112,000) 12,433,000 June 30, 2024 Balance 96,332 1,889,080 327,454 - 3,085,483 4,992,279 222,934 (112,000) 10,501,562 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2023-2024 HOUSING PROGRAMS BUDGET
FS- 11

11.1.b
Packet Pg. 143 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) State Gas Tax
F201
Measure A
F202
NPDES
F203
Park in Lieu
F206
Lighting
District
F221
Drainage
District
F222
Measure W
F234
Total
Revenues
Property Tax - - - - 801,900 153,440 - 955,340
Sales Tax - - - - - - - -
Utility Users Tax - - - - - - - -
Transient Occupancy Tax - - - - - - - -
Other State and Local Taxes 1,455,000 650,000 - - - - 300,000 2,405,000 Franchise Fees - - - - - - - -
Licenses, Fees, and Permits - - 144,000 - - - - 144,000 Fines and Forfeitures - - - - - - - -
Use of Money and Property 41,600 70,400 4,800 4,800 60,800 9,600 8,000 200,000 Grants and Intergovernmental - - 92,000 - - - - 92,000
Charges for Current Services - - 7,500 - - - - 7,500
Other Miscellaneous - - - - - - - -
Total Revenues 1,496,600 720,400 248,300 4,800 862,700 163,040 308,000 3,803,840 Expenditures
City Council - - - - - - - -
City Attorney - - - - - - - -
City Clerk - - - - - - - -
City Manager - - - - - - - -
Administrative Services - - - - - - - -
Finance - 1,689 2,000 - - - 1,689 5,378
Community Development - - - - - - - -
Public Works 898,741 - 317,433 - 140,018 211,742 - 1,567,934 Police - - - - - - - -
Non-Departmental - -
Capital/Technology 550,000 550,000 - - - - 220,000 1,320,000 Debt Service - - - - - - - -
Insurance and Settlements - - - - - - - -
Other Non-Departmental 76,808 - 369,625 - 4,800 1,350 - 452,583 Overhead Allocation 137,344 1,770 80,486 - 48,431 96,232 - 364,263 Total Expenditures 1,662,893 553,459 769,544 - 193,249 309,324 221,689 3,710,158 Net Sources / (Uses) (166,293) 166,941 (521,244) 4,800 669,451 (146,284) 86,311 93,682 Other Financing Sources / (Uses)
Transfers In 64,500 - 531,244 - - 146,284 - 742,028
Transfers Out - - - - - - - -
Net Operating Transfers 64,500 - 531,244 - - 146,284 - 742,028 Change in Fund Balance (101,793) 166,941 10,000 4,800 669,451 - 86,311 835,710 Other Changes - - - - - - - -
Projected Fund Balance
July 01, 2023 Balance* 3,442,000 4,418,000 210,000 337,000 4,798,000 733,000 577,000 14,515,000 June 30, 2024 Balance 3,340,207 4,584,941 220,000 341,800 5,467,451 733,000 663,311 15,350,710 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2023-2024 INFRASTRUCTURE PROGRAMS BUDGET
FS- 12

11.1.b
Packet Pg. 144 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

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

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

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

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

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

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

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

FS- 13

11.1.b
Packet Pg. 145 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) This Page Intentionally Left Blank
FS-14

11.1.b
Packet Pg. 146 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Capital
Improvement
F301/303
Parks and
Trails Impact
F305
Public
Facilities
Impact
F306
Transportation
Impact
F307
RBD-I
Storm Drain
Impact
F308
RBD-O
Storm Drain
Impact
F309
Total
Revenues
Property Tax - - - - - - -
Sales Tax - - - - - - -
Utility Users Tax - - - - - - -
Transient Occupancy Tax - - - - - - -
Other State and Local Taxes - - - - - - -
Franchise Fees - - - - - - -
Licenses, Fees, and Permits - 441,679 774,606 275,371 360,252 - 1,851,908 Fines and Forfeitures - - - - - - -
Use of Money and Property 310,400 100 300 2,880 100 3,200 316,980 Grants and Intergovernmental - - - - - - -
Charges for Current Services - - - - - - -
Other Miscellaneous 300,000 - - - - - 300,000
Total Revenues 610,400 441,779 774,906 278,251 360,352 3,200 2,468,888 Expenditures
City Council - - - - - - -
City Attorney - - - - - - -
City Clerk - - - - - - -
City Manager 5,625 - - - - - 5,625
Administrative Services 100,000 - - - - - 100,000
Finance 129,141 - - - - - 129,141
Community Development - - - - - - -
Public Works 160,000 - - 83,333 83,333 - 326,666
Police - - - - - - -
Non-Departmental
Capital/Technology - - - - - - -
Debt Service - - - - - - -
Insurance and Settlements - - - - - - -
Other Non-Departmental - - - - - - -
Overhead Allocation - - - - - - -
Total Expenditures 394,766 - - 83,333 83,333 - 561,432
Net Sources / (Uses) 215,634 441,779 774,906 194,918 277,019 1,907,456 3,200 Other Financing Sources / (Uses)
Transfers In - - - - - - -
Transfers Out - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance 215,634 441,779 774,906 194,918 277,019 3,200 1,907,456 Other Changes - - - - - - -
Projected Fund Balance
July 01, 2023 Balance* 9,064,000 455,000 853,000 476,000 364,000 290,000 11,502,000 June 30, 2024 Balance 9,279,634 896,779 1,627,906 670,918 641,019 13,409,456 293,200 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2023-2024 CAPITAL PROJECT FUNDS BUDGET
FS- 15

11.1.b
Packet Pg. 147 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

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

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

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

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

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

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

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

FS- 16

11.1.b
Packet Pg. 148 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Water
Lease
F510
Water Capital
F511
Water Meter
F512
Water Capacity
F513
Sub-total
Water
Enterprise
Garbage
Service
F520
Total
Revenues
Property Tax - - - - - - -
Sales Tax - - - - - - -
Utility Users Tax - - - - - - -
Transient Occupancy Tax - - - - - - -
Other State and Local Taxes - - - - - - -
Franchise Fees - - - - - - -
Licenses, Fees, and Permits - - - 777,863 777,863 - 777,863 Fines and Forfeitures - - - - - - -
Use of Money and Property 524,720 64,000 22,400 8,000 619,120 19,200 638,320 Grants and Intergovernmental - - - - - - -
Charges for Current Services - 1,200,000 - - 1,200,000 2,988,000 4,188,000 Other Miscellaneous - - - - - 276,000 276,000
Total Revenues 524,720 1,264,000 22,400 785,863 2,596,983 3,283,200 5,880,183 Expenditures
City Council - - - - - - -
City Attorney - - - - - - -
City Clerk - - - - - - -
City Manager 49,098 - - - 49,098 - 49,098
Administrative Services - - - - - - -
Finance 20,000 - - - 20,000 2,000 22,000
Community Development - - - - - - -
Public Works 176,500 25,000 10,000 83,333 294,833 205,953 500,786 Police - - - - - - -
Non-Departmental -
Capital/Technology - - - - - - -
Debt Service - - - - - - -
Insurance and Settlements - - - - - - -
Other Non-Departmental 73,000 300,000 - - 373,000 2,995,500 3,368,500 Overhead Allocation 74,518 - - - 74,518 63,801 138,319
Total Expenditures 393,116 325,000 10,000 83,333 811,449 3,267,254 4,078,703 Net Sources / (Uses) 131,60 4 939,000 12,400 702,530 1,785,534 1,801,48 15,946 0 Other Financing Sources / (Uses)
Transfers In - - - - - - -
Transfers Out - - - - - - -
Net Operating Transfers - - - - - - -
Change in Fund Balance 131,604 939,000 12,400 702,530 1,785,534 15,946 1,801,480 Other Changes - - - - - - -
Projected Fund Balance
July 01, 2023 Balance* 2,643,000 6,728,000 1,583,000 531,000 11,485,000 1,263,000 12,748,000 June 30, 2024 Balance 2,774,604 7,667,000 1,595,400 1,233,530 13,270,534 1,278,946 14,549,480 *Excludes certain reserves and commitments

CITY OF EAST PALO ALTO
FY 2023-2024 ENTERPRISE FUNDS BUDGET
FS- 17

11.1.b
Packet Pg. 149 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) FY 2020-21
ACTUAL
FY 2021-22
ACTUAL
FY 2022-23

ADOPTED
FY 2023-24

BASELINE
FY 2023-24

PROPOSED
Property Tax 14,226,629 $ 15,843,008 $ 15,725,420 $ 17,028,600 $ 17,028,600 $ Sales Tax 5,422,953 $ 5,738,443 $ 5,845,000 $ 6,030,000 $ 6,030,000 $ Transient Occupancy Tax 152,771 $ $ 1,158,314 $ 1,100,000 $ 2,200,000 $ 2,200,000 Utility User Tax $ 1,630,879 $ 1,631,049 $ 1,702,680 $ 1,726,043 $ 1,726,043 Business License Tax $ 1,223,696 $ 1,269,802 $ 1,348,250 $ 2,601,135 $ 2,601,135 Permit, Fees, & Charges for Services $ 2,873,785 $ 2,267,588 $ 2,895,920 $ 2,567,800 $ 2,607,800 Other Revenues and Transfers In $ 2,657,240 $ 1,602,978 $ 1,652,640 $ 2,549,000 $ 2,549,000 Total General Fund Revenues 28,187,953 29,511,182 30,269,910 34,702,578 34,742,578 *

GENERAL FUND REVENUES BY MAJOR CATEGORY
$-
$5,000,000
$10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 FY 2020-21
ACTUAL
FY 2021-22
ACTUAL
FY 2022-23

ADOPTED
FY 2023-24

BASELINE
FY 2023-24

PROPOSED
$5,876,740 $5,976,160 $5,845,000 $6,030,000 $6,030,000
$14,226,629
$15,843,008 $15,725,420
$17,028,600 $17,028,600
$152,771
$1,158,314 $1,100,000
$2,200,000 $2,200,000
$2,873,785
$2,267,588 $2,895,920
$2,567,800 $2,607,800
$1,223,696
$1,269,802 $1,348,250
$2,601,135 $2,601,135
$1,553,920
$1,630,879 $1,665,000
$1,702,684 $1,702,680
$1,850,587
$2,340,933 $2,061,540
$579,500 $1,472,640
Revenue by Category
Other RevenuesUtility User TaxBusiness License TaxPermit, Fees, & Charges for ServicesTransient Occupancy TaxProperty TaxSales Tax FS - 18

11.1.b
Packet Pg. 150
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) FY 2020-21
ACTUAL FY 2021-22 ACTUAL FY 2022-23 ADOPTED FY 2023-24 BASELINE FY 2023-24 PROPOSED Personnel $ 15,765,607 $ 12,406,087 $ 18,551,208 $ 21,342,422 $ 21,654,407 Professional/Technical Services $ 6,102,198 $ 5,987,731 $ 5,202,364 $ 7,529,862 $ 7,087,034Property Services/Supplies $ 3,618,262 $ 3,591,346 $ 4,922,105 $ 5,607,784 $ 5,086,724Capital, Transfers, and Other Expenditures $ 3,731,583 $ 2,691,126 $ 2,455,963 $ 1,955,539 $ 1,560,538Total General Fund Expenditures Before Allocations $ 29,217,650 $ 24,676,290 $ 31,131,640 $ 36,435,607 $ 35,388,703 Overhead Allocation to Other Funds $ (826,223) $ (833,910) $ (861,730) $ (913,434) $ (913,434) Total Net General Fund Expenditures 28, $ 391,427 $ 23,842,380 $ 30,269,910 $ 35,522,173 $ 34,475,269

GENERAL FUND EXPENDITURES BY MAJOR CATEGORY
$-
$5,000,000
$10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 FY 2020-21
ACTUAL
FY 2021-22
ACTUAL
FY 2022-23

ADOPTED
FY 2023-24

BASELINE
FY 2023-24

PROPOSED
$15,765,607
$12,406,087
$18,551,208
$21,342,422 $21,654,407
$6,102,198
$5,987,731
$5,202,364
$7,529,862 $7,087,034
$3,618,262
$3,591,346
$4,922,105
$5,607,784 $5,086,724
$3,731,583
$2,691,126
$2,455,963
$1,955,539
$1,560,538
Expenditure by Category Other Expenditures Property Services/Supplies Professional/Technical Services Personnel
FS - 19

11.1.b
Packet Pg. 151
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) This Page Intentionally Left Blank

11.1.b
Packet Pg. 152 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

CITY COUNCIL
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2023-24
Operating $171,150
Positions 5
DB -1

11.1.b
Packet Pg. 153 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Department Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - - -
Use of Resources 104,796 109,373 169,028 171,150 171,150 Special Revenue Funds - - - - -
Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 104,796 109,373 169,028 171,150 171,150
EXPENDITURES BY DEPARTMENT FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Council 104,796 109,373 169,028 171,150 171,150
TOTAL 104,796 109,373 169,028 171,150 171,150
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 84,167 86,962 122,028 127,330 127,330 Subtotal 84,167 86,962 122,028 127,330 127,330
Supplies and Services
Purchased Services 13,346 19,284 42,000 38,820 38,820
Supplies and Materials 3,256 3,126 5,000 5,000 5,000
Capital Expenditures 4,027 - - - -
Other Expenditures - - - - -
Subtotal 20,629 22,410 47,000 43,820 43,820
TOTAL 104,796 109,373 169,028 171,150 171,150
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Mayor 1.00 1.00 1.00 1.00 1.00
Vice Mayor 1.00 1.00 1.00 1.00 1.00
Council Member 3.00 3.00 3.00 3.00 3.00
TOTAL 5.00 5.00 5.00 5.00 5.00
FY 2023-2024 Budget

CITY COUNCIL
DB-2

11.1.b
Packet Pg. 154 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

CITY COUNCIL
FY 2023-2024 Budget
Department Summary
A five-member Council governs City services for a population of approximately 28,586 residents. Each Council Member is elected at large and serves a four-year term. The Mayor is appointed by the members of the Council and serves a one-year term. The Council convenes in regular session on the 1st and 3rd Tuesdays of each month (except for an annual recess during month of August), and often holds special meetings and work study sessions throughout the year. All meetings are held in the East Palo Alto (EPA) Government Center, located in the City Council Chamber at 2415 University Avenue or available through designated media channels.

The Council adopts policies, resolutions and ordinances for City operations and ensures appropriate representation and response to citizen interests. The City Council appoints the City Manager and City Attorney, who report directly to them, and in turn, support the City Council in its policy development functions and carry out the City Council policies and programs.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $2,122 (+1.3%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to an increase in personnel offset by the decrease in professional services and event expenses.

There is no change from the FY 2023-24 Baseline Budget to the FY 2023-24 Proposed Budget Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $169,028
2023-24 Baseline $171,150 $2,122 1.3%
2023-24 Proposed $171,150 $0 0.0%

PURPOSE
The City Council develops and adopts policies that ensure delivery of quality public services to the people of East Palo Alto in order to create a healthy, safe, and prosperous environment.

DB- 3

11.1.b
Packet Pg. 155 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

CITY COUNCIL
FY 2023-2024 Budget
Total FTE’s: 5.0
MAYOR
Lisa Gauthier
Vice Mayor
Antonio Lopez
Council Member
Carlos Romero
Council Member
Ruben Abrica
Council Member
Martha Barragan
DB- 4

11.1.b
Packet Pg. 156
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY ATTORNEY’S OFFICE
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2023-24
Operating $1,073,928
Positions 3
DB- 5

11.1.b
Packet Pg. 157 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 823,024 821,202 827,827 1,031,428 1,031,428 Special Revenue Funds 83,114 15,283 35,000 35,000 35,000 Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund 1,000 532 7,500 7,500 7,500
TOTAL 906,670 837,486 870,327 1,073,928 1,073,928
EXPENDITURES BY DEPARTMENT FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Attorney's Office 906,670 837,486 870,327 1,073,928 1,073,928 TOTAL 906,670 837,486 870,327 1,073,928 1,073,928
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 584,906 358,054 608,927 641,128 641,128 Subtotal 584,906 358,054 608,927 641,128 641,128
Supplies and Services
Purchased Services 473,705.67 253,650 312,499 387,950 387,950 Supplies and Materials 5,725.68 7,750 5,589 7,750 7,750 Capital Expenditures 3,676 - - 37,100 37,100
Other Expenditures - - - - -
Subtotal 321,764 479,431 261,400 432,800 432,800
TOTAL 906,670 837,486 870,327 1,073,928 1,073,928
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Attorney 1.00 1.00 1.00 1.00 1.00
Deputy City Attorney I/II 1.00 1.00 1.00 1.00 1.00
Legal Assistant 1.00 1.00 1.00 1.00 1.00
TOTAL 3.00 3.00 3.00 3.00 3.00
Department Summary

CITY ATTORNEY'S OFFICE
FY 2023-2024 Budget
DB- 6

11.1.b
Packet Pg. 158 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY ATTORNEY’S OFFICE
FY 2023-2024 Budget
Department Summary
The role of the City Attorney’s Office is to provide advisory and litigation services to the City, as represented by the City Council, City Council-appointed boards, commissions and committees, and City departments. The Office has a staffing level of 3 positions: City Attorney, Deputy City Attorney and Legal Assistant although there has not been a staff attorney the entire year.

The emphasis in the Fiscal Year 2023-2024 budget is the continued delivery of quality professional legal services which promote reliable and useful advice and effective advocacy. The basic services include attendance and advice at public meetings, drafting resolutions and ordinances, providing legal opinions and advice on a wide range of municipal topics, reviewing, and drafting legal documents and contracts, providing advice regarding elected and appointed public officials’ conflicts of interest, representing the City in litigation before courts and administrative agencies and settling claims and lawsuits based on an impartial evaluation of their merits.

Within each of the basic services provided, the City Attorney’s Office undertakes projects that specifically address the City Council’s Strategic Plan Goals and Objectives:
 Provide proactive legal advice to the City Council and City staff;  Issue opinions and draft documents that help achieve the City Council’s Strategic Plan and the City Manager’s priority action items;
 Advise on significant changes in state and federal law and other regulations impacting City operations and programs;
 Present Brown Act, Conflict of Interest, and Public Records Act training to the City staff, boards and commissions, and provide legal advice regarding the same;  Defend the City’s interest in court and administrative hearings and initiate legal action to protect the rights and enhance the quality of life of City residents;  Provide objective and reasonable interpretation of City Council-adopted policies, state and local laws and other matters, as appropriate;
 Draft ordinances on topics designated as high priority by the City Council;  Update, revise, and add provisions to the Municipal Code and local zoning law as required;

MISSION STATEMENT
Provide legal advice and representation, consistent with the highest professional and ethical standards, to the City Council, City officers, City employees, and appointed boards, commissions, and committees in carrying out the City Council’s policies and strategic goals and objectives and advancing the City’s interest in serving the people of East Palo Alto while limiting risk to the entity and costs to the taxpayers.

DB- 7

11.1.b
Packet Pg. 159 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY ATTORNEY’S OFFICE
FY 2023-2024 Budget
Department Summary
(Continued)
 Work with the City Manager’s Office to reduce exposure to claims, litigation and industrial injuries/illnesses;
 Support the Rent Stabilization Program, including providing legal advice to staff and the Rent Stabilization Board; preparing reports and analyzing appeals; updating program regulations; attending board meetings; and
 Support the Community and Economic Development Department, including providing legal advice to staff and the Planning Commission, attending Commission meetings, and analyzing land use issues related to adopted development projects.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $203,601 from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to an investigation expense increase in City Attorney’s office ($45,000) and investigation expenses transferred from HR ($78,000) for the Budget management efficiency. In addition, the Attorney’s office plans to remodel its office ($32,000).

There is no change from the FY 2023-24 Baseline Budget to the FY 2023-24 Proposed Budget Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $870,327
2023-24 Baseline $1,073,928 $203,601 23.4%
2023-24 Proposed $1,073,928 $0 0.0%
DB- 8

11.1.b
Packet Pg. 160 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY ATTORNEY’S OFFICE
FY 2023-2024 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Attend and provide advice at City Council
meetings and provide the City Council an
update of any changes in state law regarding
public meetings and conflicts of interest.

1. Accomplished.

2. Assist the City Council and the City Manager’s
Office implement Council priorities.

2. Accomplished.

3. Attend and provide advice at Planning
Commission meetings.

3. Accomplished.

4. Attend and provide advice at Rent Stabilization
Board meetings.

4. Accomplished.

5. Provide training to City boards, commissions,
and committees regarding the Brown Act,
Public Records Act and conflict of interest laws.

5. Accomplished.

6. Represent the City in lawsuits and
administrative hearings and pursue costeffective resolution of pending litigation matters and the processing and settlement of claims
filed against the City.

6. Accomplished.

7. Provide legal advice to all City departments
regarding responses to PRA requests, record
retention and subpoenas.

7. Accomplished.

8. Draft, review, and process City contracts,
agreements, and other legal documents.

8. Accomplished.

9. Support the City Council, Human Resources,
and other City departments on labor and
employment matters.

9. Accomplished.

10. Provide legal advice to the City Council,
Planning Commission and City departments on
major project applications.

10. Accomplished
DB- 9

11.1.b
Packet Pg. 161 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY ATTORNEY’S OFFICE
FY 2023-2024 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

11. Assist implementation of Measure HH and
support development of an updated First Source
Hiring program.

11. Accomplished.

12. Provide legal guidance and support regarding
COVID-19-related state of emergency, local
emergency, and associated impacts.

12. Ongoing.

13. Support the Public Works Department on water
infrastructure and sewer-related matters.

13. Ongoing.

14. Provide legal advice to the Code Enforcement
Division and file code enforcement actions as
needed.

14. Accomplished.

15. Assist with drafting the Opportunity to Purchase
Act Ordinance.

15. Accomplished. Ordinance not adopted.

16. Assist with amendments to the Lease of Real
Property (Water System –Veolia).

16. Accomplished.

DB- 10

11.1.b
Packet Pg. 162 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY ATTORNEY’S OFFICE
FY 2023-2024 Budget

OBJECTIVES

1. Attend and provide advice at City Council meetings and provide the City Council with an update of any changes in state law regarding public meetings and conflicts of interest.

2. Assist the City Council and the City Manager’s Office to implement Council priorities.

3. Attend and provide advice at Planning Commission meetings.

4. Attend and provide advice at Rent Stabilization Board meetings.

5. Provide training to City boards, commissions, and committees regarding the Brown Act, Public Records Act, and conflict of interest laws.

6. Represent the City in lawsuits and administrative hearings and pursue cost-effective resolution of pending litigation matters and the processing and settlement of claims filed against the City.

7. Provide legal advice to all City departments regarding responses to PRA requests, record retention and subpoenas.

8. Draft, review, and process City contracts, agreements, and other legal documents.

9. Support the City Council, Human Resources, and other City departments on labor and employment matters.

10. Provide legal advice to the City Council, Planning Commission and City departments on major project applications.

11. Continue to provide legal guidance and support regarding COVID-19 related state of emergency, local emergency, and associated impacts.

12. Support the Public Works Department on water infrastructure and sewer-related matters.

13. Housing Element.

14. Assist with drafting the Gun Control Ordinance.

DB- 11

11.1.b
Packet Pg. 163 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Total FTE’s: 3.0
CITY ATTORNEY’S OFFICE
FY 2023-2024 Budget
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\lCITY ATTORNEY
John Le
Legal Assistant
Deputy City Attorney I/II
DB- 12

11.1.b
Packet Pg. 164
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY CLERK’S OFFICE
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2023-24
Operating $361,068
Positions 1
DB- 13

11.1.b
Packet Pg. 165 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Department Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - - -
Use of Resources 416,925 164,977 405,324 361,068 361,068 Special Revenue Funds - - - - -
Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 416,925 164,977 405,324 361,068 361,068
EXPENDITURES BY DEPARTMENT FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Clerk's Office 416,925 164,977 405,324 361,068 361,068 TOTAL 416,925 164,977 405,324 361,068 361,068
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 204,534 102,842 160,884 175,378 175,378 Subtotal 204,534 102,842 160,884 175,378 175,378
Supplies and Services
Purchased Services 210,596 61,886 169,440 185,690 185,690 Supplies and Materials 1,796 249 - - -
Capital Expenditures - 75,000 - - -
Other Expenditures - - - - -
Subtotal 212,391 62,135 244,440 185,690 185,690
TOTAL 416,925 164,977 405,324 361,068 361,068
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Clerk- Public Information Officer 1.00 1.00 1.00 1.00 1.00 TOTAL 1.00 1.00 1.00 1.00 1.00

CITY CLERK'S OFFICE
FY 2023-2024 Budget
DB- 14

11.1.b
Packet Pg. 166 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY CLERK’S OFFICE
FY 2023-2024 Budget
The City Clerk’s Office functions as a sole position in Office with administrative support from the City Manager’s Office.

The Clerk is responsible for facilitating the conduct of business by the City Council and fulfilling legal requirements as set forth in the City Code, federal and State laws. The City Clerk’s Office administers City elections and campaign and financial disclosure laws. The City Clerk’s Office maintains a record of all proceedings of the City Council; meets all requirements regarding public postings, legal advertising, recordation, and mailing of public hearing notices. The Office also processes appeals and administers the selection process for Council appointment of members to City board, commissions, and committees.

The City Clerk’s Office provides administrative and travel assistance to Council, maintains the City Code, is the custodian of the City Seal, administers oaths or affirmations, and maintains the official record of City contracts and agreements. The Office also performs critical media outreach and information functions to improve communication of City information and engage the community through modern media platforms.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The decrease of $44,256 (-10.9%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to no expenses for equipment (-$75,000) and decreased county services expenses such as elections (-$42,000), offset by Software lease ($52,600) and other operating expenses.

There is no change from the FY 2023-24 Baseline Budget to the FY 2023-24 Proposed Budget.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous
2022-23 Adopted $405,324
2023-24 Baseline $361,068 ($44,256) -10.9%
2023-24 Proposed $361,068 $0 0.0%

MISSION STATEMENT
The City Clerk’s Office is committed to providing our residents of East Palo Alto with accurate and transparent official City records and documents, dedicated to supporting the City Council and other City Departments with outstanding support, and dedicated to working with the State of California and the Federal Government to ensure compliance with applicable laws and regulations.

DB- 15

11.1.b
Packet Pg. 167 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY CLERK’S OFFICE
FY 2023-2024 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Implement electronic public request tracking
system

1. The City Clerk’s office has started the
process of meeting with vendors and
researching the best PRA tracking system.

2. Continue update of records going back to 1983 2. Resolutions, Ordinances, Minutes, and Agenda Packets have been uploaded to
Laserfiche. The City Clerk's office will
begin to upload more records to Laserfiche
once it is fully implemented.

3. Place more records on Laserfiche. 3. The City Clerk’s office is currently undergoing training to fully understand how
to use and implement Laserfiche in order to
properly train staff on how to use the
software. Training sessions are expected to
start Summer of 2023.

4. Implement DocuSign. 4. DocuSign has been fully implemented throughout the City.

5. Continue to improve social media outreach and
engagement

5. The City has provided social media updates
in case of emergencies, announcing events
and City announcements. The City Clerk’s
office continues to publish its weekly “City
Updates” newsletter.

6. Bring in interpretation services for city meetings
throughout the year.

6. The City Clerk’s office will release an RFP
mid-March for interpretation services that
can serve City Council meetings and other
necessary board meetings.

7. Create logistics for hybrid city meetings. 7. The City has a fully operating hybrid system that allows for remote and in person
meetings to occur. The City Clerk’s office
is currently working to provide hardware
updates that will make the hybrid
experience seamless
DB- 16

11.1.b
Packet Pg. 168 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY CLERK’S OFFICE
FY 2023-2024 Budget

OBJECTIVES

1. Implement electronic public request tracking system.

2. Continue to update Citywide records going back to 1983.

3. Continue to improve social media outreach and engagement.

4. Implement communications plan.

5. Implement upgraded agenda management system.

DB- 17

11.1.b
Packet Pg. 169 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY CLERK’S OFFICE
FY 2023-2024 Budget
Total FTE’s: 1.0

CITY MANAGER
City Clerk –
Public Information
Officer
DB- 18

11.1.b
Packet Pg. 170
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2023-24
Operating $2,447,017
Positions 6
DB- 19

11.1.b
Packet Pg. 171 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2023-24 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - - -
Use of Resources 1,814,009 967,963 1,606,767 2,182,770 2,392,293 Special Revenue Funds 1,319 18,242 37,290 - -
Capital Project Funds 66,303 54,962 70,849 78,556 5,625 Enterprise Funds 10,000 70,066 44,282 49,098 49,098
Succesor Agency Trust Fund - - - - -
TOTAL 1,045,586 1,957,279 1,759,188 2,310,424 2,447,017 EXPENDITURES BY DEPARTMENT FY 2020-21 FY 2021-22 FY 2023-24 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Manager's Office 1,045,586 1,364,244 1,278,316 982,616 1,520,290 Human Resources Division¹ - 593,035 776,572 1,032,108 926,727 TOTAL 1,045,586 1,957,279 1,759,188 2,310,424 2,447,017 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2023-24 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 1,418,097 689,740 1,300,108 1,045,531 1,698,964 Subtotal 689,740 1,418,097 1,300,108 1,045,531 1,698,964 Supplies and Services
Purchased Services 346,072 511,183 1,238,893 437,580 728,053 Supplies and Materials 9,773 27,999 21,500 26,000 20,000 Capital Expenditures - - - - -
Other Expenditures - - - - -
Subtotal 355,845 539,182 1,264,893 459,080 748,053
TOTAL 1,045,586 1,957,279 1,759,188 2,310,424 2,447,017 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2023-24 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Manager's Office 3.00 3.00 4.00 4.00 4.00
Human Resources Division¹ 0.00 2.00 2.00 2.00 2.00
TOTAL 3.00 5.00 6.00 6.00 6.00
¹ Division transferred from Administrative Services in FY 2020-21.

CITY MANAGER'S OFFICE
FY 2023-2024 Budget
Department Summary
DB- 20

11.1.b
Packet Pg. 172 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget
Department Summary
City Council appoints the City Manager to serve as the chief executive officer of the municipal corporation.

The City Manager is tasked with ensuring sound, cost-effective, and efficient management of all City programs and services. The City Manager supports the City Council by recommending and implementing administrative, fiscal, and operational policies; assuring that the analysis for items presented for City Council action is complete and sufficient to support City Council decision-making.

The City Manager’s Office (CMO) supports strategic collaboration among State, County, and local leaders and stakeholders, and manages Council strategic priorities across all City departments. The CMO is also responsible for overseeing personnel in Human Resources and the City Clerk’s Office.

The City Manager’s Office also is managing the City’s Emergency Preparedness and Response.

The Department is comprised of a total of seven (7) staff members: (6) permanent full-time employees and one (1) limited full-time employee.
 1 City Manager
 1 Assistant City Manager
 1 Assistant to the City Manager (Limited)
 1 Executive Assistant to the City Manager
 1 Senior Management Analyst
 1 Human Resources Manager
 1 Human Resources Assistant

MISSION STATEMENT
The City Manager is responsible for ensuring the efficient delivery of municipal services and is accountable to the City Council for the performance of the City organization. The City Manager also develops recommendations and strategies to meet the current and future needs of the East Palo Alto community, and to implement the Strategic Priorities of the City Council. Along with the City professional staff, the City Manager provides technical and administrative support and advice to the City Council in the performance of their duties.

DB- 21

11.1.b
Packet Pg. 173 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Total FTE’s: 6.0
CITY MANAGER’S OFFICE
FY 2023-2024 Budget

CITY MANAGER
Melvin E Gaines
Community
Development
Police
Department
City Manager’s
Office
Public Works
Department
Administrative
Services
Finance
Department
City Clerk’s
Office
Human Resources
DB- 22

11.1.b
Packet Pg. 174
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - - -
Use of Resources 967,963 1,238,005 867,485 1,150,662 1,465,567 Special Revenue Funds 1,319 1,211 - - -
Capital Project Funds 66,303 54,962 70,849 78,556 5,625 Enterprise Funds 10,000 70,066 44,282 49,098 49,098
Succesor Agency Trust Fund - - - - -
TOTAL 1,045,586 1,364,244 982,616 1,278,316 1,520,290
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Manager's Office 1,045,586 1,364,244 982,616 1,278,316 1,520,290 TOTAL 1,045,586 1,364,244 982,616 1,278,316 1,520,290
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 689,740 1,090,582 940,101 691,763 1,242,975 Subtotal 689,740 1,090,582 940,101 691,763 1,242,975
Supplies and Services
Purchased Services 346,072 257,403 37,015 581,053 271,815 Supplies and Materials 9,773 16,259 5,500 5,500 5,500
Capital Expenditures - - - -
Other Expenditures - - - -
Subtotal 355,845 273,662 42,515 586,553 277,315
TOTAL 1,045,586 1,364,244 982,616 1,278,316 1,520,290
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
City Manager 1.00 1.00 1.00 1.00 1.00
Assistant City Manager 1.00 1.00 1.00 1.00 1.00
Executive Assistant to City Manager 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 0.00 0.00 1.00 1.00 1.00
TOTAL 3.00 3.00 4.00 4.00 4.00

CITY MANAGER'S OFFICE
FY 2023-2024 Budget
Division Summary
DB- 23

11.1.b
Packet Pg. 175 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget
Division Summary
The City Manager’s Office is organized into the following programmatic functions: Administration and Policy Oversight, Cross-departmental Project Coordination, Human Resources, and City Clerk’s Office.

The Office directly oversees the Human Resources and the City Clerk’s Office. Significant functional oversight includes:

1. City personnel, budget, and major cross-departmental projects and initiatives;

2. Planning and implementation of Council Strategic priorities and goals;

3. Collaborating with stakeholders regarding City functions;

4. Making recommendations to Council on a variety of issues and initiatives.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $295,700 (30.1%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to the Strategic consulting retainer service of $140,000, City policy update of $25,000, Emergency response document preparation of $50,000, and software lease of $25,000.

The increase of $241,974 (18.9%) from the Baseline FY23-24 Budget to the Proposed FY 23-24 Budget is due to the Assistant to the City Manager position base salary.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $982,616
2023-24 Baseline $1,278,316 $295,700 30.1%
2023-24 Proposed $1,520,290 $241,974 18.9%

SERVICE DESCRIPTION
The City Manager’s Office serves as the Chief Executive Officer and performs the public administrative function for the City. The Office collaborates with Federal, State, and local stakeholders and directs and oversees implementation of Council strategic planning and priorities. The City Manager’s Office performs oversight of the organization to provide professional delivery of quality public services, efficient government, community health and safety, fiscal stability, organizational effectiveness and development, economic vitality, quality of life, and citizen involvement.

DB- 24

11.1.b
Packet Pg. 176 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Continue to oversee local community
COVID-19 Emergency response.

The City continued to respond strongly to the
COVID-19 Pandemic. However, with the
January closure of the County vaccine program
and the February 28, 2023 State of California
end of the COVID emergency declaration, the
City wound down response. While COVID will
remain a chronic issue,

2. In coordination with Administrative Services
Department, continue critical planning efforts to
improve City parks.
a. The City refurbished the playing field at
Martin Luther King Junior Park to provide
safe places for residents to play.
b. Implemented online reservation system to
improve transparency and provide greater
equity in securing City owned parks &
facilities.
c. Successfully returned to mostly in-person
Community Services activities from Shelter
in Place or Remote conditions.
d. The City Council approved the Citywide
Parks Master Plan to provide a policy
document for the future of East Palo Alto on
April 4th, 2023. The Master Plan examines
opportunities for Parks, Open Space, and
Recreation.

3. In coordination with the Community
Development Department, improve
opportunities for housing.
a. Supported Nugent Square resyndication
b. Collaborated with School District for
potential development on school site
c. Collaborated with the County for potential
land swap (between 2277 University, City
owned, and Beech St, County owned) and
potential affordable housing development at
2277 University
d. Secured $8 million in state funding for
Colibri Commons (fka 965 Weeks)
affordable housing development, $1.5M of
which is going toward citywide water
infrastructure improvements

4. In coordination with the
Community Development Department, increase
the City’s economic and workforce
development.

The City has issued a request for proposals to
attract qualified organization to provide
Measure HH job training services. On
November 15, 2022 the City Council authorized
the appropriation $1.3M in Measure HH funds
for workforce development programs.

5. In coordination with the Public Works
Department, complete and implement a
On October 4, 2022, the City Council adopted
the City’s updated Water Master Plan for water
DB-25

11.1.b
Packet Pg. 177 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget

ACCOMPLISHMENTS
comprehensive Capital Improvement Plan for
water infrastructure.
infrastructure. Further, the Council approved
$7.6M in funding for the University Avenue and
Weeks Street watermain projects.

DB- 26

11.1.b
Packet Pg. 178 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget

OBJECTIVES

1. Establish and launch follow-up actions resulting from community survey results.

2. Refine and implement comprehensive strategy to address City’s structural deficit.

3. Assess workplace culture, develop and implement improvement plan.

4. Assess organizational structure, identify and propose modifications to improve efficiency and effectiveness.

5. Propose short, mid, and long-term steps to implement the City's facilities master plan, including any modifications.

6. Update the City's emergency preparedness plan

7. Improve communications and the City's community engagement efforts.

8. Explore launching a City strategic planning effort including community members, City Council and City staff.

DB- 27

11.1.b
Packet Pg. 179 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Division Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 453,198 576,004 739,282 1,032,108 926,727 Special Revenue Funds - 17,031 37,290 - -
Capital Project Funds - - - -
Enterprise Funds - - - -
Succesor Agency Trust Fund - - - -
TOTAL 453,198 593,035 776,572 1,032,108 926,727
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Human Resources Division¹ 593,035 453,198 776,572 1,032,108 926,727 TOTAL 453,198 593,035 776,572 1,032,108 926,727
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 333,981 327,515 360,007 353,768 455,989 Subtotal 333,981 327,515 360,007 353,768 455,989
Supplies and Services
Purchased Services 108,626 253,780 400,565 657,840 456,238 Supplies and Materials 10,591 11,739 16,000 20,500 14,500 Capital Expenditures - - - -
Other Expenditures - - - -
Subtotal 119,217 265,520 416,565 678,340 470,738
TOTAL 453,198 593,035 776,572 1,032,108 926,727
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Human Resources Manager 1.00 1.00 1.00 1.00 1.00
Human Resources Assistant 1.00 1.00 1.00 - -
Human Resources Technician I/II - - - 1.00 1.00
TOTAL 2.00 2.00 2.00 1.00 1.00
¹ Division transferred from Administrative Services in FY 2020-21.

All activity disclosed for comparison purposes.

FY 2023-2024 Budget
Human Resources Division

CITY MANAGER'S OFFICE

11.1.b
Packet Pg. 180 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget
Human Resources Division Summary
The Human Resources Division (HR) currently is within the City Manager’s Office with two positions:

Human Resources Manager and Human Resources Assistant.

Core functions of the HR Division include:
 Recruiting, attracting new staff, and filling vacant positions with talented and well-qualified candidates;
 Providing labor negotiations to three bargaining units; meet and confer with labor representatives to cultivate and foster a positive working environment and build collaboration among all divisions;  Reviewing and interpreting policies and procedures and provide guidance for Directors/Managers/ Supervisors to resolve issues;
 Take a leadership role in the implementation of the Enterprise Resource Planning (ERP) software and learn the system to ensure that the HR processes are setup correctly.  Developing and implementing employee wellness policies and programs.  Managing and providing support and guidance to management when dealing with personnel issues, employee performance evaluations, salary step increases, grievances, exit interviews for resignations, and retirement;
 Conducting new hire orientation;
 Ensuring professional staff development and training opportunities;  Managing and conducting open enrollment meetings to provide employees with information regarding medical, dental, life, and retirement benefits.

The HR Division is increasingly requiring additional staff assistance due to a high volume of work projects and compliance tasks. The division has been impacted by the 2020 Pandemic, including numerous compliance issues, personnel responses, new initiatives for local emergency response, and other tasks.

The division budget includes additional, temporary funding to backfill staff services and additional outside professional services to address work impacts related to the Pandemic; however, long-term the current staff level and current workload may not be sustainable.

SERVICE DESCRIPTION
Human Resources provides guidance and support to City Departments, employees, officials, candidates, and the public in the areas of benefit administration, classification and compensation, labor and employee relations, recruitment and selection, organizational development and training, workers’ compensation administration, risk management, and compliance.

Our objective is to attract the most diverse, competent, professional, and talented workforce as well as retain a talented and well-qualified workforce and help foster a positive working environment for employees.

DB- 29

11.1.b
Packet Pg. 181 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget
Human Resources Division Summary
HR’s emphasis for the Fiscal Year 2022-2023 is to continue working to achieve the City of East Palo Alto’s strategic mission while ensuring City employees are engaged and motivated to help East Palo Alto residents, businesses, organizations, and visitors. This will be accomplished by identifying issues and executing corrective measures effectively.

The Human Resources team has targeted its operation initiatives to align to the City Council’s Strategic Plan by initially identifying ways to continue to retain and develop training programs for our great staff.

The HR Division’s goal is to be a results-oriented business partner providing support to all levels of the City. Hire the best people, while offering development and training to our existing staff.

The focus this year is to offer online training as well as streamline new recognition and wellness programs to continue working in our efforts to retain our employees by creating an environment that makes our team feel like an asset to our City. Generate an intranet specifically for the employees to access Human Resources information.

Human Resources will continue to network with other local public agencies within the County of San Mateo and NorCal and this way staying informed of state and local developments and changes in laws that may affect our City.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $255,536 (32.9%) from the Adopted FY 2022-23 Budget to the Baseline FY 2023-24 Budget is primarily due to the Recruitment and Labor relation consulting of $120,000 and Labor negotiation expense increase by $87,500.

The decrease of $105,381 (-10.2%) from the Baseline FY 2023-24 Budget to the Proposed FY 2023-24 Budget is primarily due to a decrease in Temp agency cost of $100,000 which will be charged to each department.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $776,572
2023-24 Baseline $1,032,108 $255,536 32.9%
2023-24 Proposed $926,727 ($105,381) -10.2%
DB - 30

11.1.b
Packet Pg. 182 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget
Human Resources Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Continue to recruit new staff and fill vacant
positions as needed.

1. On-going.

2. Conduct labor negotiations with all three (3)
employee bargaining units.

2. On-going. Previous administration did not
close all MOU articles.

3. Provide leadership and implementation of all
types of training to all levels of the workforce.

3. On-going.

4. Review and update Personnel Policies and
Procedures manual and meet and confer with
employee bargaining units prior to City Council
final approval.

4. Postponed. Will start next fiscal year.

5. HR will work with labor to explore savings and
other strategies through negotiations or the meet
and confer process.

5. On-going.

6. Comply with all Federal and State laws and
regulations to protect the City.

6. On-going.

DB- 31

11.1.b
Packet Pg. 183 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) CITY MANAGER’S OFFICE
FY 2023-2024 Budget
Human Resources Division

OBJECTIVES

1. Continue to recruit new staff and improve recruitment marketing for vacant positions as needed.

2. Conduct labor negotiations with all three (3) employee bargaining units. Ensure all MOUs are taken to City Council in a timely manner.

3. Implement/improve leave administration program.

4. Provide leadership and implementation of all types of training to all levels of the workforce.

5. Review and update Personnel Policies and Procedures manual and meet and confer with employee bargaining units prior to the City Council final approval.

6. HR will work with labor to explore savings and other strategies through negotiations to meet and confer process.

7. Comply with all Federal and State laws and regulations to protect the City.

DB-32

11.1.b
Packet Pg. 184 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) This Page Intentionally Left Blank
DB- 33

11.1.b
Packet Pg. 185 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2023-24
Operating $2,839,686
Positions 7.15
DB- 34

11.1.b
Packet Pg. 186 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Department Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - 19,759 34,000 101,100 150,100 Use of Resources 1,936,679 1,633,583 1,862,606 1,805,236 1,709,236 Special Revenue Funds 167,335 501,488 292,624 410,350 980,350 Capital Project Fund 18,257 - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 2,122,271 2,154,830 2,189,230 2,316,686 2,839,686 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 853,065 935,065 981,098 793,482 813,482 Community Services Division 700,691 1,219,765 1,208,132 1,523,204 2,026,204 Human Resources Division 568,515 - - - -
TOTAL 2,122,271 2,154,830 2,189,230 2,316,686 2,839,686 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 1,089,842 871,390 1,024,282 918,819 918,819 Subtotal 1,089,842 871,390 1,024,282 918,819 918,819
Supplies and Services
Purchased Services 892,113 1,269,780 929,148 1,079,867 1,042,867 Supplies and Materials 40,441 13,660 29,300 43,000 308,000 Capital Expenditures 4,498 - - - 570,000
Other Expenditures 95,377 - 206,500 275,000 -
Subtotal 1,032,429 1,283,440 1,164,948 1,397,867 1,920,867 TOTAL 2,122,272 2,154,830 2,189,230 2,316,686 2,839,686 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administrative Services Admin Division 3.00 3.00 2.00 2.00 2.00 Community Services Division 4.15 3.65 5.15 5.15 5.15
Human Resources Division¹ 2.00 - - - -
TOTAL 9.15 6.65 7.15 7.15 7.15
¹ Division transferred to City Manager's Office effective FY2020-21 FY 2023-2024 Budget

ADMINISTRATIVE SERVICES DEPARTMENT
DB- 35

11.1.b
Packet Pg. 187 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget
Department Summary
The Administrative Services Department oversees a wide-range of functions, among them:

Administration
 Managing the submittal, review, recommendation, and awards of TOT grants processes;  Developing the City’s emergency response preparation and readiness and coordinating emergency response exercises and training with regional first responders agencies, City staff and the Community Emergency Response Team.

Community Services & Recreation
 Managing parks and recreation activities in City facilities, parks and public meeting areas;  Managing the City’s Senior Nutrition & Transportation Program.

Information Technology
 Oversees all computer technology and telephone systems within City Hall and other City offices;  Citywide printing resources and systems;
 Receives information regarding technology bids and procurement.

MISSION STATEMENT
The Administrative Services Department consists of Community Services and Information Technology. The mission of the Department is to manage community services, including parks, recreation, and senior services; information technology; and administer and implement community-based projects such as emergency response support.

DB- 36

11.1.b
Packet Pg. 188 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget
Total FTE’s: 7.15

ADMINISTRATIVE SERVICES

DIRECTOR
Marie McKenzie
Administrative Services
Division (2.0) Community Services & Recreation Division (5.15)
DB- 37

11.1.b
Packet Pg. 189
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - - -
Use of Resources 853,065 926,065 939,974 793,482 813,482 Special Revenue Funds - 9,000 41,124 - -
Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 853,065 935,065 981,098 793,482 813,482
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 853,065 935,065 981,098 793,482 813,482 TOTAL 853,065 935,065 981,098 793,482 813,482
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 383,844 434,070 500,650 362,715 362,715 Subtotal 383,844 434,070 500,650 362,715 362,715
Supplies and Services
Purchased Services 451,131 498,202 475,948 430,767 450,767 Supplies and Materials 14,977 2,793 4,500 - -
Capital Expenditures 3,113 - - - -
Other Expenditures - - - - -
Subtotal 469,221 500,995 480,448 430,767 450,767
TOTAL 853,065 935,065 981,098 793,482 813,482
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administrative Services Director 1.00 1.00 1.00 1.00 1.00 Administrative Grants Coordinator 1.00 1.00 - - -
Office Assistant 1.00 1.00 1.00 1.00 1.00
TOTAL 3.00 3.00 2.00 2.00 2.00
FY 2023-2024 Budget

ADMINISTRATIVE SERVICES DEPARTMENT
Division Summary
Administration Division
DB- 38

11.1.b
Packet Pg. 190 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget
Administration Division Summary
The Administrative Services Administration Division is organized in the following programmatic functions:

Administration of the Information Technology (IT), Community Services division functions and direct administration of Council initiatives related to community services. The Division currently has an authorized staffing level of two positions and Redwood City IT contract services equal to a full-time Senior IT technician.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The decrease of $187,616 (-19.1%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to the reduced personnel salaries and wages and other operating expenses.

The increase of $20,000 (2.5%) from the Baseline FY 23-24 Budget to the Proposed FY 23-24 Budget is due to the annual payment based on Gateway 101 agreement.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $981,098
2023-24 Baseline $793,482 ($187,616) -19.1%
2023-24 Proposed $813,482 $20,000 2.5%

SERVICE DESCRIPTION
The Administration Division of the Administrative Services Department oversees a variety of services for the community and manages administrative functions of the City, including Community Services, Information Technology, and local programs related to grants and community outreach.

DB- 39

11.1.b
Packet Pg. 191 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 19,759 34,000 101,100 150,100 Use of Resources 515,099 707,517 922,632 1,011,754 895,754 Special Revenue Funds 167,335 492,488 251,500 410,350 980,350 Capital Project Fund 18,257 - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 700,691 1,219,765 1,208,132 1,523,204 2,026,204
-
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Community Programs 412,354 948,680 895,006 1,008,947 1,511,947 Senior Programs 288,337 271,084 313,126 514,257 514,257 TOTAL 700,691 1,219,765 1,208,132 1,523,204 2,026,204
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 378,318 437,319 523,632 556,104 556,104 Subtotal 378,318 437,319 523,632 556,104 556,104
Supplies and Services
Purchased Services 216,947 771,579 453,200 649,100 592,100 Supplies and Materials 10,049 10,867 24,800 43,000 308,000 Capital Expenditures - - - - 570,000
Other Expenditures 95,377 - 206,500 275,000 -
Subtotal 322,373 782,445 684,500 967,100 1,470,100
TOTAL 700,691 1,219,765 1,208,132 1,523,204 2,026,204
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Community Services Manager 1.00 1.00 1.00 1.00 1.00
Recreation Coordinator - - 1.00 1.00 1.00
Recreation Leader II (3 PT) 0.90 0.90 0.90 0.90 0.90
Van Drivers (2-PT)¹ 1.00 0.50 1.00 1.00 1.00
Nutrition Site Supervisor (PT) 0.75 0.75 0.75 0.75 0.75 Kitchen Aide (PT) 0.50 0.50 0.50 0.50 0.50
TOTAL 4.15 3.65 5.15 5.15 5.15
¹ Temporary 0.5 position freeze in FY 2020-21

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget
Division Summary
Community Services & Recreation Division
DB- 40

11.1.b
Packet Pg. 192 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget
Community Services Division Summary
The Division is staffed with 5.15 proposed full-time equivalent positions equating to a total of ten staff.  1 Community Services Manager
 1 Recreation Coordinator
 1 Nutrition Site Supervisor
 1 Kitchen Aide
 2 Van Drivers
 3 Part-time (0.3) Recreation Leaders
 1 Administrative Assistant
The Community Services Division activities rely heavily on interdepartmental, inter-jurisdictional, and community partnerships to deliver services that enhance the quality of life for East Palo Alto residents with a focused effort on increasing community engagement. The Community Services Division provides staffing support to the Senior Advisory Board, including efforts to fill vacancies with committed residents that represent the myriad of skill/talent, community senior interests, and cultural diversity of the community.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $315,072 (26.1%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to the children and family expenses increased ($275,000) and the Consulting for Parks services and Open space study ($100,000), offset by other operating expenses.

The increase of $503,000 (33.0%) from the Baseline FY 23-24 Budget to the Proposed FY 23-24 Budget is mainly due to the Lighting equipment purchase for parks ($530,000.) Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $1,208,132
2023-24 Baseline $1,523,204 $315,072 26.1%
2023-24 Proposed $2,026,204 $503,000 33.0%

SERVICE DESCRIPTION
Community Services is responsible for an array of services and facilities for residents and visitors to our City. Responsibilities include senior services, facility and park reservations, family and children programming, citysponsored events, sports, leisure, and urban arts programing.

The Focus is on providing efficient, responsive, and innovative communitybased services that promotes a healthy and safe neighborhood that meets the communities’ diverse cultural, recreation, and information needs.

DB- 41

11.1.b
Packet Pg. 193 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget
Community Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Cultural Arts, Events and Entertainment:
• Promote, support, and provide CitySponsored events (Cinco de Mayo, Juneteenth, Children’s Day, and Tree
Lighting Ceremony), cultural services,
special events, and educational
opportunities for the community.
• Support local artists and arts
organizations through promotion and
events.
• Implementation of Utility Box arts
project.

1. Completed

2. Completed

3. In-Progress

2. Lifelong Learning:
• Provide ongoing opportunities for the
community to learn new skills, explore
opportunities, and pursue knowledge
for personal and/or professional
development.
• Enhance Literacy and STEM access and
services.

1. Continuing

2. In Progress

3. Recreation:
• Streamline the Summer Park Activation
process utilizing the best practices from
the Parks Master Plan
• Complete first (ever) Comprehensive
Park Master Plan
• Increase emotional and social support
for Seniors by implementing
intergenerational programs between
youth and senior populations.
• Increase recreation space through
partnerships and field rentals.

1. In Progress

2. Completed

3. Completed

4. Completed
DB- 42

11.1.b
Packet Pg. 194 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget
Community Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

4. Community Outreach and Engagement:
• Promote programs, events, and services
through intentional and strategic
communications and marketing and
provide opportunities for residents to
engage and volunteer in city offered
programs.
• Increase Library/City community
engagement and collaboration to exceed
over 3000 residents with more Digital
Literacy classes, Farmers’ Markets, and
school visits.
• Host community Resource Fair and/or
Flea Market at City Room at the Y or
Bell Street Park.
• Increase social media posts and events
to promote Community Services and
Recreation programs and special events.

1. Completed

2. In-Progress

3. Completed

4. Completed

5. Senior Services:
• Rebooted senior services and events
like the Senior’s Prom
• Increase senior programs and services.
• Mobilize Senior Advisory Committee to
assist seniors with their needs and any
other assistance they might require.

1. Completed

2. In-Progress

3. In-Progress

6. Youth Leadership Development:
• Provide Opportunities for youth ages
12-25 to develop leadership life skills,
job preparation, and college readiness
through interactive programming.

1. In-Progress
DB- 43

11.1.b
Packet Pg. 195 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

ADMINISTRATIVE SERVICES DEPARTMENT
FY 2023-2024 Budget
Community Services Division

OBJECTIVES

1. Cultural Arts, Events and Entertainment:
• Implement and host City’s 40th Anniversary Celebration, Gala, and Parade. • Promote, support, and provide City-Sponsored events (Cinco de Mayo, Juneteenth, Children’s Day, and Tree Lighting Ceremony), cultural services, special events, and educational opportunities for the community.
• Support local artists and arts organizations through promotions and events. • Implementation of Utility Box arts project in collaboration with EPA Arts Center.

2. Lifelong Learning:
• Provide ongoing opportunities for the community to learn new skills, explore opportunities, and pursue knowledge for personal and/or professional development. • Enhance Literacy and STEM access and services.

3. Community Outreach and Engagement:
• Promote programs, events, and services through intentional and strategic communications and marketing and provide opportunities for residents to engage and volunteer in city offered programs.
• Increase Library/City community engagement and collaboration to exceed over 3000 residents with more Digital Literacy classes, Farmers’ Markets, and school visits. • Host community Resource Fair and/or Flea Market at City Room at the Y or Bell Street Park.
• Increase social media posts and events to promote Community Services and Recreation programs and special events.

4. Recreation:
• Implement fifth (5th) year of summer recreation programs and services. • Complete the master plans for Martin Luther King Junior and Bell Street parks • Increase the amount of youth participating in recreation programs that promote healthy habits, by 15% and provide additional programming for Senior programs • Increase emotional and social support for seniors by implementing intergenerational programs between youth and senior populations.
• Increase recreation space through partnerships and field rentals.

5. Senior Services:
• Assist all seniors in East Palo Alto with help to get access to COVID-19 test and vaccinations.
• Increase senior programs and services.
• Mobilize Senior Advisory Committee to assist seniors with their needs and any other assistance they might require.

6. Youth Leadership Development:
• Provide Opportunities for youth ages 12-25 to develop leadership life skills, job preparation, and college readiness through interactive programming.
• Create framework for Youth Summit and Commission
DB- 44

11.1.b
Packet Pg. 196 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) This Page Intentionally Left Blank
DB- 45

11.1.b
Packet Pg. 197 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

FINANCE DEPARTMENT
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2022-23
Operating $1,467,090
Positions 7
DB- 46

11.1.b
Packet Pg. 198 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 55,618 44,215 53,810 68,858 63,080 Use of Resources 1,234,827 981,660 1,197,561 1,469,688 1,344,914 Special Revenue Funds 10,665 9,957 59,870 9,067 9,067
Capital Project Fund - - - - -
Enterprise Funds 36,197 1,816 21,000 22,000 22,000
Succesor Agency Trust Fund 13,655 11,126 23,225 28,029 28,029 TOTAL 1,350,962 1,048,774 1,355,466 1,597,643 1,467,090 EXPENDITURES BY DEPARTMENT FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Finance Department 1,350,962 1,048,774 1,355,466 1,597,643 1,467,090 TOTAL 1,350,962 1,048,774 1,355,466 1,597,643 1,467,090 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 1,097,224 889,013 1,009,157 1,192,711 1,062,158 Subtotal 1,097,224 889,013 1,009,157 1,192,711 1,062,158 Supplies and Services
Purchased Services 234,036 154,554 336,309 394,932 391,932 Supplies and Materials 19,702 5,207 10,000 10,000 10,000 Capital Expenditures - - - - 3,000
Other Expenditures - - - - -
Subtotal 253,738 159,761 346,309 404,932 404,932
TOTAL 1,350,962 1,048,774 1,355,466 1,597,643 1,467,090 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Finance Director 1.00 1.00 1.00 1.00 1.00
Financial Services Manager 1.00 1.00 1.00 1.00 1.00
Senior Management Analyst 1.00 1.00 1.00 - -
Accountant Senior 1- - - 1.00 1.00
Accountant I/II 1.00 1.00 1.00 1.00 1.00
Account Technician I/II 2.00 2.00 2.00 2.00 2.00
Grant Coordinator - - 1.00 1.00 1.00
TOTAL 7.00 6.00 7.00 7.00 7.00
1 Converting Sr. Management Analyst to Accountant Senior (subject to Council approval) FY 2023-2024 Budget

FINANCE DEPARTMENT
Department Summary
DB-47

11.1.b
Packet Pg. 199 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

FINANCE DEPARTMENT
FY 2023-2024 Budget
Department Summary
Finance Department functions include administration, financial reporting, risk management, tax administration, budgeting, forecasting, cash management and treasury, and capital financing and debt management. The department has an authorized staffing level of seven positions, including: Finance Director, Financial Services Manager, Senior Management Analyst, Accountant I/II, two Account Technicians I/II, and Grants Coordinator.

Current goals related to the Council Strategic Priorities for Finance Department include: (1) addressing structural deficit through fiscal resiliency measures, (2). The Department completed several milestones related to addressing structural deficit through fiscal resiliency measures including an adoption of General Fund reserve policy and commitment of $3 million for CalPERS prefunding.

Major areas of on-going emphases are: (a) implementing Enterprise Resource Planning (ERP) system, (b) developing 10-year financial projections, (c) analyzing funding strategies for & community perspectives on public infrastructure improvements, and (d) assisting Human Resource on improving staff morale, retention, recruitment & succession planning.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $242,177 (17.9%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to increases in the personnel costs by COLA and merit increases, and IT services, such as the new EPP implementation and annual subscription fee.

The decrease of $130,552 (-8.2%) from the Baseline FY 23-24 Budget to the Proposed FY 23-24 Budget is primarily related to a decrease in Pandemic workers backfill ($85,000) and Salary savings due to the position conversion from Senior Management Analyst to Accountant Senior ($42,000).

Fiscal Year (FY) Budget $ Change from
Previous FY
% Change from
Previous FY
2022-23 Adopted $1,355,466
2023-24 Baseline $1,597,643 $242,177 17.9%
2023-24 Proposed $1,467,090 ($130,552) -8.2%

MISSION STATEMENT
Maintain the financial integrity of the City by providing fiscal management and oversight, including safeguarding assets. Oversee financial, compliance, and operational reviews and/or audits that provide independent and objective analysis of City departments; provide accurate, complete, and timely financial records, and enhance the City’s financial reporting systems, controls, and disbursements.

DB- 48

11.1.b
Packet Pg. 200 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

FINANCE DEPARTMENT
FY 2023-2024 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Implement Enterprise Resource Planning (ERP)
software by September 2022.

1. In the system integration phase. We will
receive trainings and go on live by
September 2023

2. Complete a Long-term General Fund Forecast
and present to Council by January 2023.

2. Selected and contracted with Urban Futures
for the 10-year financial forecast model.

3. Continue supporting COVID 19 emergency
response; maximize and support cost recovery
efforts. Inform Council regarding Federal
Treasury Regulations for use of American
Rescue Act Funds (ARPA).

3. Presented to Council for the use of the
funds via Quarterly Emergency Fund
reporting and concluded the Covid
emergency in May 2023.

4. Conduct oversight of grant management
procedural and control improvements, including
implementation of recommendations to properly
staff and fund grant control and oversight
activities.

4. Released the updated grant managing
procedures and trained project managers
and on-going.

5. Select a third-party administrator for on-line
business license tax renewal application, and
compliance processes supported by credit card
capability, and implement the new processes by
September 2022.

5. Contracted with HDL for the Business
Discovery Program to find non-compliant
businesses in the City, and they began
collecting business license taxes on behalf
of the City.

6. Issue Request for Proposals for outside,
professional audit services by December 2022.

6. Selected and contracted with Eide Bailly for
audit services from Fiscal year 2023 to
2025.

7. Complete FY2021-22 Comprehensive Annual
Financial Report and submit application to
Government Finance Officers Association
(GFOA) by December 2022.

7. Annual Comprehensive Annual Financial
Report (ACFR) was issued and submitted to
GFOA on December 23,2022.

8. Select a CalPERS Unfunded Liability option for
pre-funding liabilities and reducing overall costs
and risks.

8. Committed $3 million in General Fund for
pre-funding options.

9. Support Public Works Infrastructure and
District Studies to reduce General Fund support
of NPDES and Storm Drain District activities.

9. On-going efforts to be made.

10. Adopt California Uniform Public Construction
Cost Accounting Act procedures, update City
Purchase Ordinance, and update comprehensive
purchasing policies and procedures.

10. On-going efforts to be made.

DB- 49

11.1.b
Packet Pg. 201 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

FINANCE DEPARTMENT
FY 2023-2024 Budget

ACCOMPLISHMENTS

OBJECTIVES RESULTS

11. Analyze funding strategies for & community
perspectives on public infrastructure
improvements.

11. Retained a consultant to perform a
community engagement survey. The survey
is currently being conducted.

12. Assist Human Resources on improving staff
morale, retention, recruitment & succession
planning.

12. Objective met and on-going efforts.

DB- 50

11.1.b
Packet Pg. 202 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

FINANCE DEPARTMENT
FY 2023-24 Budget

OBJECTIVES

1. Assess and Prepare for Utility Operational and Finance Needs.

2. Analyze needs, strategies and community support for funding public infrastructure improvements

3. Perform Impact Fee Nexus Study

4. Develop 10 year Financial Projections

5. ERP Implementation

6. Support Public Works Infrastructure and District Studies to reduce General Fund support of NPDES and Storm Drain District activities

7. Adopt California Uniform Public Construction Cost Accounting Act procedures, update City Purchase Ordinance, and update comprehensive purchasing policies and procedures

8. Complete FY2022-23 Annual Comprehensive Financial Report and submit application to Government Finance Officers Association (GFOA) by December 2023 DB- 51

11.1.b
Packet Pg. 203 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

FINANCE DEPARTMENT
FY 2023-2024 Budget
Total FTE’s: 7.0

FINANCE DIRECTOR
Tomohito Oku
Financial Services Manager
Accountant
Senior 1
Accountant
I/II
Account
Technicial I/II (2)
Grant
Coordinator
1 Subject to Council approval
DB- 52

11.1.b
Packet Pg. 204
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2023-24
Operating $11,086,860
Positions 20
DB- 53

11.1.b
Packet Pg. 205 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Department Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 2,301,133 1,573,002 2,450,648 2,899,279 2,916,349 Use of Resources 2,017,922 1,773,463 668,748 2,380,784 2,133,665 Special Revenue Funds 1,165,183 1,458,694 6,363,235 5,114,700 6,036,847 Capital Project Funds 24,084 - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 5,508,322 4,805,159 9,482,631 10,394,762 11,086,860 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 1,017,882 1,087,213 682,074 734,305 734,306 Building Services Division 917,201 1,129,440 1,287,113 1,712,559 1,729,629 Housing & Econ Development 1,389,111 1,051,296 6,335,909 5,246,178 6,110,205 Planning Division 2,184,127 1,537,209 1,177,535 2,701,720 2,512,720 TOTAL 5,508,322 4,805,159 9,482,631 10,394,762 11,086,860 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 2,084,660 2,161,736 3,039,711 3,263,544 3,280,642 Subtotal 2,084,660 2,161,736 3,039,711 3,263,544 3,280,642 Supplies and Services
Purchased Services 3,391,749 2,591,755 1,042,070 4,097,868 4,772,868 Supplies and Materials 29,513 49,986 44,850 47,350 47,350 Capital Expenditures 2,403 1,683 81,000 126,000 126,000 Other Expenditures - - 5,275,000 2,860,000 2,860,000
Subtotal 3,423,664 2,643,424 6,442,920 7,131,218 7,806,218 TOTAL 5,508,323 4,805,160 9,482,631 10,394,762 11,086,860 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 6.45 3.50 4.00 4.00 4.00
Building Services Division 7.00 7.00 7.00 7.00 7.00
Housing & Econ Development 3.00 3.00 4.00 4.00 4.00
Planning Division 4.00 4.00 4.00 5.00 5.00
TOTAL 20.45 17.50 19.00 20.00 20.00

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
DB-54

11.1.b
Packet Pg. 206 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Department Summary
The Community and Economic Development Department consists of four divisions: Administration, Building, Planning, and Housing/Economic Development. The Department is responsible for a wide range of functions including:
 Coordinating and managing the City’s development related functions (e.g. long range planning, development review, entitlement and permit processing, inspection services, housing and code compliance/enforcement);
 Coordinating business development and retention efforts through both capital projects and direct economic development efforts;
 Providing staff support to the Planning Commission and Rent Stabilization Board;  Collaborating with regional organizations (e.g. City/County Association of Governments (C/CAG), Metropolitan Transportation Committee (MTC), the South Bayside Waste Management Authority and the San Francisquito Creek Joint Powers Authority). .

MISSION STATEMENT
The Community & Economic Development Department seeks to make East Palo Alto a wonderful place to live, work, and play. The Department accomplishes this through effective current and long-range municipal planning, housing management, ensuring code compliance, and managing business attraction, development, and retention opportunities in East Palo Alto.

DB- 55

11.1.b
Packet Pg. 207 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
FY 2023-2024 Budget
Total FTE’s: 20.0
DB-67
Office Assistant
Administration
Building Inspector II
Planning Manager
Secretary I/II
1Code Enforcement
/Bldg Inspector Hybrid
Assistant/Associate
Planner (2)
Management Analyst I/II
Building Services Housing & Econ Dev
Housing Project
Manager
Planning
Housing & Econ Dev
Manager

ASSISTANT CITY

MANAGER

COMMUNITY & ECONOMIC

DEVELOPMENT DIRECTOR
Amy Chen
Rent Stabilization
RSP Administrator
RSP Coordinator II
Senior Planner
Building Permit
Technician (2)
Chief Building Official
Planning Technician
Code Enforcement
Officer II (2)
1Subject to Council approval
DB- 56

11.1.b
Packet Pg. 208
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - - -
Use of Resources 891,241 472,264 629,770 678,453 578,693 Special Revenue Funds 107,712 614,950 52,304 55,852 155,613 Capital Project Funds 18,929 - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 1,017,882 1,087,213 682,074 734,305 734,306
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 1,017,882 1,087,213 682,074 734,305 734,306 Environmental Programs1 - - - - -
TOTAL 1,017,882 1,087,213 682,074 734,305 734,306
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 524,370 488,481 621,374 672,605 672,606 Subtotal 524,370 488,481 621,374 672,605 672,606
Supplies and Services
Purchased Services 483,494 588,925 48,200 49,200 49,200 Supplies and Materials 8,273 9,807 12,500 12,500 12,500 Capital Expenditures 1,745 - - -
Other Expenditures - - - -
Subtotal 493,512 598,732 60,700 61,700 61,700
TOTAL 1,017,882 1,087,213 682,074 734,305 734,306
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Community & Econ Development Director 1.00 1.00 1.00 1.00 1.00 Management Analyst II¹ 2.00 0.50 1.00 1.00 1.00
Secretary II 1.00 1.00 1.00 1.00 1.00
Office Assistant 1.00 1.00 1.00 1.00 1.00
Environmental Services Aide¹ 1.45 - - - -
TOTAL 6.45 3.50 4.00 4.00 4.00
¹ Net Positions Transferred to/from Public Works
FY 2023-2024 Budget

COMMUNITY AND ECONOMIC DEVELOPMENT
Administration Division
Division Summary
DB- 57

11.1.b
Packet Pg. 209 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Administration Division Summary
The Administration of the Community and Economic Development Department is led by the Community and Economic Development Director with the assistance of one Management Analyst II and two (2) administrative support staff. The Administration Division manages the activities of and sets policy for the Department, manages budgets, and coordinates grant partnerships and contract administration, and oversees other administrative processes. Additionally, the Administration Division of Community and Economic Development works collaboratively with Public Works to support engineering and capital projects, parks, streets and facilities maintenance, long-range planning and development services and environmental programs.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $52,231 (7.7%) from the Adopted FY 2022-23 Budget to the Baseline FY 2023-24 Budget is primarily due to the increase in personnel cost.

There is no change from the FY 2023-24 Baseline Budget to the FY 2023-24 Proposed Budget.

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous FY
2022-23 Adopted $682,074
2023-24 Baseline $734,305 $52,231 7.7%
2023-24 Proposed $734,306 $1 0.0%

SERVICE DESCRIPTION
The Community and Economic Development Department provides a wide array of services to the community. The Department provides planning and development related services to property owners and businesses. The Community and Economic Development Department serves as the focal point for business and economic development efforts as well as administration of local affordable housing funds and programs. Other services include regional agency coordination, environmental coordination, and transportation coordination.

DB- 58

11.1.b
Packet Pg. 210 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Division Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 891,823 1,129,029 1,287,113 1,642,559 1,659,629 Use of Resources 25,378 411 - 70,000 70,000
Special Revenue Funds - - - - -
Capital Project Funds - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 917,201 1,129,440 1,287,113 1,712,559 1,729,629
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Building Services Division 917,201 1,129,440 1,287,113 1,712,559 1,729,629 TOTAL 917,201 1,129,440 1,287,113 1,712,559 1,729,629
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 574,259 755,368 971,013 1,042,959 1,060,029 Subtotal 574,259 755,368 971,013 1,042,959 1,060,029
Supplies and Services
Purchased Services 335,579 358,898 228,300 569,300 569,300 Supplies and Materials 6,706 13,751 17,800 20,300 20,300 Capital Expenditures 657 1,423 70,000 80,000 80,000
Other Expenditures - - -
Subtotal 342,942 374,072 316,100 669,600 669,600
TOTAL 917,201 1,129,440 1,287,113 1,712,559 1,729,629
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Chief Building Official 1.00 1.00 1.00 1.00 1.00
Building Inspector II 1.00 1.00 1.00 1.00 1.00
Building Permit Technician 2.00 2.00 2.00 2.00 2.00
Code Enforcement/Bldg Inspector Hybrid 1 - - - - 1.00
Code Enforcement Officer II 3.00 3.00 3.00 3.00 2.00
TOTAL 7.00 7.00 7.00 7.00 7.00
1 Converting Code Enforcement Officer II to Code Enforcement/Bldg Inspector Hybrid (subject to Council approval) FY 2023-2024 Budget
Building Services Division

COMMUNITY AND ECONOMIC DEVELOPMENT
DB- 59

11.1.b
Packet Pg. 211 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Building Services Division Summary

SIGNIFICANT CHANGES

Building Services Division responsibilities include project plan review, inspections, permit activities coordination, evaluation, implementation of codes and policies, and construction-related code enforcement for existing and new buildings and properties of all construction types and occupancies. The goal of the Division is to enforce minimum life safety standards for the built environment, which enhances the quality of life for residents and business.

Enhancement and constant improvement of building services and streamlining of the permitting and inspection processes are a major component of the City’s economic and business development effort. The Division is managed by the Chief Building Official and is staffed with two Code Enforcement Officers II, one Code Enforcement/Building Inspector Hybrid, two Permit Technicians, and one Building Inspector II. (The Code Enforcement/Building Inspector Hybrid position is subject to Council approval.) Additionally, the Building Services Division continues to add to customer service and operational efficiencies by developing and distributing educational handouts, policies, procedures and written interpretations that address enforcement. These resources are also made available online to aid our customers in their efforts related to new construction, additions, alterations, maintenance and repair of properties and structures in the City of East Palo Alto.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $425,446 (33.1%) from the Adopted FY 2022-23 Budget to the Baseline FY 2023-24 Budget is primarily due to the increase of professional services for post-entitlement review, building inspection, and other building division support services.

The increase of $17,070 (1.0%) from the Baseline FY 2023-24 Budget to the Proposed FY 2023-24 Budget is due to the adjustment of the personnel cost.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $1,287,113
2023-24 Baseline $1,712,559 $425,446 33.1%
2023-24 Proposed $1,729,629 $17,070 1.0%

SERVICE DESCRIPTION
The Building Division ensures that existing and new/proposed development complies with the California Building Standards Code, Title 24, including California Code of Regulations Titles 8 and 19 as mandated by the State of California. The Division provides customer assistance to residents, property owners, contractors, developers, design professionals and businesses via the City’s Permit Center. Services include plan review, permit issuance and assistance, building inspections, and enforcement of state and local regulatory laws.

DB- 60

11.1.b
Packet Pg. 212 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Building Services Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Continue to improve service quality, efficiency,
and customer service levels in all areas of the
Building Division’s Permit Center, Building
Inspections, Building Plan Review, and Code
Enforcement.

1. Maintained the same level of service as we
did during the Pandemic.

2. Continue to support staff to pursue all
applicable certification, training, and education
in order for staff to develop and achieve their
potential for exemplary customer benefits.

2. Staff has continued to attend remote and inperson trainings.

3. Conduct public outreach relevant to the new
state mandates and building codes.

3. Two public meetings held to introduce the
2022 State Building Code Standards and the
proposed 2023 Reach Code.

4. Continue to update technology and tools to
better serve the community and provide a
modern work environment.

4. In progress. Current TRAKiT permitting
system needs to be updated.

5. Foster interdepartmental collaboration to ensure
compliance with all laws and regulations
relating to the built and natural environment.

5. Ongoing.

6. Continue to collaborate with external agencies
to provide financially challenged customers
with resources for project assistance.

6. Ongoing.

7. Implement the newly adopted Reach Code
standards for new construction.

8. Manage the influx load of Code Enforcement
cases per the City’s existing Code Enforcement
Program under Resolution 4610 with limited
allowance for anonymous complaints.

7. Adopted new 2023 REACH Codes.

8. Administrative Regulations (April 20, 2021,
Resolution 57-2021) have been set in place
to limit the number of complaints received
from a single complainant and reestablishment of timelines and priorities.

DB- 61

11.1.b
Packet Pg. 213 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Building Services Division

OBJECTIVES

1. Ongoing improvements of service quality, efficiency and customer service levels in all areas of the Building Division’s Permit Center, Building Inspections, Building Plan Review, and Code Enforcement.

2. Continue to support staff to pursue all applicable certification, training and education in order for staff to develop and achieve their potential for exemplary customer benefits.

3. Conduct public outreach relevant to the new state mandates and building codes.

4. Foster interdepartmental collaboration to ensure compliance with all laws and regulations relating to the built and natural environment.

5. Implement the newly adopted Reach Code standards for new construction.

6. Manage the influx load of Code Enforcement cases per the City’s existing Code Enforcement Program under Resolution 57-2021 with limited allowance for anonymous complaints.

DB- 62

11.1.b
Packet Pg. 214 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Division Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - - -
Use of Resources 331,641 207,552 24,978 187,330 228,971 Special Revenue Funds 1,057,471 843,744 6,310,931 5,058,848 5,881,234 Capital Project Funds - - -
Enterprise Funds - - -
Succesor Agency Trust Fund - - -
TOTAL 1,389,111 1,051,296 6,335,909 5,246,178 6,110,205 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Housing and Economic Development 929,458 739,077 4,134,840 2,916,847 3,630,874 Rent Stabilization Program 459,653 312,220 2,201,069 2,329,331 2,479,331 TOTAL 1,389,111 1,051,296 6,335,909 5,246,178 6,110,205 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 444,602 490,552 680,489 735,899 735,926 Subtotal 444,602 490,552 680,489 735,899 735,926
Supplies and Services
Purchased Services 932,796 537,847 368,220 1,638,079 2,502,079 Supplies and Materials 11,713 22,897 10,200 10,200 10,200 Capital Expenditures - - 2,000 2,000 2,000
Other Expenditures (Loans) - - 5,275,000 2,860,000 2,860,000 Subtotal 944,509 560,744 5,655,420 4,510,279 5,374,279
TOTAL 1,389,111 1,051,296 6,335,909 5,246,178 6,110,205 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Housing & Economic Development Mgr - - 1.00 1.00 1.00
Housing Project Manager 1.00 1.00 1.00 1.00 1.00
RSP Administrator 1.00 1.00 1.00 1.00 1.00
RSP Coordinator II 1.00 1.00 1.00 1.00 1.00
TOTAL 3.00 3.00 4.00 4.00 4.00
FY 2023-2024 Budget
Housing and Economic Development Division

COMMUNITY AND ECONOMIC DEVELOPMENT
DB- 63

11.1.b
Packet Pg. 215 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division Summary
The Housing and Economic Development Division is a division incorporating programmatic tasks related to affordable housing development and programs, as well as the Rent Stabilization Program. Affordable Housing and economic development programs are funded through multiple sources, including donations, Measure HH, successor housing, and the General Fund. The Rent Stabilization program is fully funded through annual registration fees paid by landlords for regulated rental units. In addition to supporting the Rent Stabilization Board in adopting and implementing regulations for the Ordinances, the staff works directly with residents and landlords to gain compliance with the Ordinances and to improve living conditions for rental residents.

The Division has a staffing level of proposed (4) positions for these services and is supported by staff from the City Attorney’s Office and the Finance Department. The Division also contracts Information Technology providers, hearing examiners, consultants, and temporary staff as needed.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The decrease of $1,089,731 (-17.2%) from the Adopted FY 2022-23 Budget to the Baseline FY 2023-24 Budget is primarily due to a decrease of HCD Loan Advance by $$1,200,000 and offset by other operating expenses increased.

The increase of $864,027 (+16.5%) from the Baseline FY2023-24 to the Proposed 2023-24 Budget is due to the Mid-Peninsula Gap Funding for Colibri Commons ($714,000) and Rent registry ($150,000).

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $6,335,909
2023-24 Baseline $5,246,178 ($1,089,731) -17.2%
2023-24 Proposed $6,110,205 $864,027 16.5%

SERVICE DESCRIPTION
Administer affordable housing and economic development programs, including the Rent Stabilization Program. The Program administers the Rent Stabilization and Eviction for Just Cause Ordinances. The primary purpose of these Ordinances is to 1) stabilize rents, 2) protect residential tenants from unreasonable rent increases and unjust or retaliatory evictions; and 3) facilitate improvements for an economically viable rental housing market . The Affordable Housing and economic development programs including various initiatives to increase housing affordability, business development, workforce development, and job creation in East Palo Alto.

DB- 64

11.1.b
Packet Pg. 216 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Leverage additional funds for housing from
State and Federal sources for affordable
housing.

1. The City received. received $70,000 in
Regional Early Action Planning (REAP)
grant funds from ABAG/MTC for planning
and housing activities and an Affordable
Housing and Sustainable Communities
(AHSC) award for the Colibri Commons
(fka 965 Weeks) Affordable Housing
Development consisting of $11.7M in
housing loan funds and $8M in grant funds,
or $19.87M total. The City is also matching
$1.7M in state funds for the Local Housing
Trust Fund (LHTF) program for Colibri
Commons

2. Implement annual updates to the Inclusionary
Housing Ordinance, including the Inclusionary
Guidelines and in-lieu fees, in addition to any
necessary amendments to adapt the ordinance to
small projects and projects with Accessory
Dwelling Units (ADUs).

2. City Council adopted new in-lieu fees for
FY 2022-23 (July 1, 2022 – June 30, 2023)
on June 7, 2022, and staff updated the
Inclusionary Housing webpage and
Chapters 2A and 2B of the Inclusionary
Guidelines for calculation of ownership and
rental in-lieu fees.

3. In coordination with the Planning Division,
complete the City’s Housing Element update for
the upcoming Regional Housing Needs
Assessment (RHNA) cycle.

3. Staff worked with 21 Elements to draft and
edit individual Housing Element sections.

Staff held Housing Element community
meetings and public hearings in July 2021,
February 2022, and May 2022. Staff also
prepared City Council and Planning
Commission informational items and public
hearings in March 2022, April 2022, July
2022, January 2023, and February 2023.

Staff submitted the draft Housing Element
on October 21, 2022, and a revised and
adopted Housing Element on February 24,
2023, after City Council adoption on
February 21, 2023. Staff also updated a
webpage with surveys, interactive tools, and
other information.

4. Fully implement the remaining activities
associated with the City’s SB 2 Planning Grant
award (affordable housing overlay zone; site
feasibility analysis for affordable housing
development)

4. The Affordable Housing Overlay Zone
work will no longer be continued given
state affordable housing overlay zone
improvements that the City is
implementing. Staff has begun to discuss
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11.1.b
Packet Pg. 217 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS
the work plan for additional ADU
streamlining activities with 21 Elements.

5. Develop workplan and complete Year 1 tasks in
the Partnership for the Bay’s
Future/Breakthrough Grant related to;
implementation of EPA OPA (if adopted);
securing sustainable funding sources for all
affordable housing activities; identifying
opportunities for housing preservation; and
capacity-building of tenant organizations in East
Palo Alto.

5. Staff developed workplan for Breakthrough
Grant and has worked with the Fellow to
advance housing preservation efforts. City
Council will consider EPA OPA policy in
2023. City Council placed Measure L on the
ballot as sustainable funding sources for
affordable housing activities and is
currently working on implementation.

Fellow has finalized research on funding
opportunities for housing preservation and
is working with local nonprofits for
capacity-building.

6. Work with other City agencies to ensure that
tenants are provided with proper notices and
relocation benefits when granted under the
Municipal Code.

6. This is an ongoing activity of the Rent
Stabilization Program. An RFP was
released to provide anti-displacement
assistance to tenants of East Palo Alto.

Services include eviction assistance, know
your rights workshops and case
management care.

7. Work with the Rent Stabilization Board, in
collaboration with the Building Services
Division, to ensure that rental units meet the
building, housing and safety code standards, so
the rent stabilization ordinance’s habitability
goals can be accomplished.

8. Assist the City Attorney’s Office and contract
legal counsel to draft any needed regulations
and amendments to the Rent Stabilization
ordinances. Gain approval of amendments from
the Board. update forms, notices, and
informative materials to reflect any revisions
adopted.

9. Work with the IT services provider to make any
necessary programming adjustment to the
Program’s registration database and petition
tracking system.

7. This is an ongoing activity of the Rent
Stabilization Program.

8. This is an ongoing activity of the Rent
Stabilization Program.

9. Rent Stabilization continues to adjust
database as needed to ensure proper
tracking is taking place.

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11.1.b
Packet Pg. 218 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

10. Conduct community outreach to educate both
landlords and tenants of their rights and
responsibilities under the City’s ordinances and
any other laws adopted in response to the
COVID19 pandemic, including distributing an
informative Guide to Rent Control in East Palo
Alto.

11. Provide information on the requirements for
eviction in the ordinances to landlords and
tenants, including mailing information to
tenants within one business day of receipt of
notices of eviction.

12. Under the 2010 Ordinance, issue Certificates of
Maximum Allowable Rent for new tenants
within five business days of the Board’s receipt
of a completed Vacancy Registration Statement
to comply with the Ordinance and regulations.

13. Mail 2022-23 Annual Program Fee Statements
forms to landlords of regulated rental units
under the 1988 Ordinance (regulated mobile
home park spaces) in May and under the 2010
Ordinance (regulated residential dwelling units)
in November, so landlords can timely submit
them and meet the deadlines established by the
ordinances.

14. Process pending petitions submitted by
landlords and tenants within the timelines
established in the Rent Stabilization Ordinance
and regulations.

15. Submit notices of noncompliance to landlords
when regulated rental units are not properly
registered as required by the ordinances and
regulations with information about how to
comply, the penalty fees that are accruing for
noncompliance, and the procedure for submittal
of a penalty waiver request for good cause.

16. Develop underwriting guidelines for use in the
Inclusionary Housing Ordinance and
Commercial Linkage Fee Programs.

10. The Rent Stabilization Program worked
with Measure O partners to disseminate
information related to the State eviction
moratorium and assist tenants with Housing
is Key applications. The Program also
provided tenants with community resources
on affordable housing.

11. With the State eviction moratorium ending
in 2022 the Rent Stabilization Program
provided referrals for rental assistance,
reviewed notices to verify.

12. This is an ongoing activity of the Rent
Program.

13. The Rent Stabilization Program sent out
this notice in November 2022. Notices
were sent to regulated residential dwelling
units. With the closure and conversion of
the regulated mobile home park spaces the
Annual Program Fee has been approved by
the board and will be kept in the books, but
the Fees are not collected for the mobile
home park spaces.

14. This is an ongoing activity of the Rent
Stabilization Program.

15. This is an ongoing activity of the Rent
Stabilization Program.

16. This action was not completed in
FY2021-22.

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11.1.b
Packet Pg. 219 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

17. Continue the RV Safe Parking Program through
April 2023.

18. Coordinate with the County and social service
partners to reduce homelessness in East Palo
Alto.

19. Develop and begin implementation of a
comprehensive, cross-departmental strategy for
unhoused residents in East Palo Alto that
addresses both RVs in the public right of way
and residents experiencing homelessness.

20. Collaborate with Planning to develop a “next
phase” strategy for promotion of ADUs beyond
the goal of producing 50 new units, as described
in the City’s 2018-2023 Affordable Housing
Strategy.

17. The RV Safe Parking Program
successfully operated through April
2022 on an overnight and daytime basis
with the City support. In April 2022.

City Council extended the program for
daytime operations for an additional
year from May 1, 2022, to April 30,
2023.

18. Staff meet monthly with County and
social service partners to coordinate the
response to homelessness. Staff
presented a comprehensive strategy for
addressing unhoused residents, for City
Council consideration in April 2022.

19. Staff implemented a cross-departmental
strategy that addresses RVs in the public
right of way. Any RV not working with a
service provider in the public right of way
receives a red tag notice from Public Works
and gets towed if no action is taken after the
notice, with assistance from the Police
Department staff. Public Works staff
coordinate notice and encampment cleanup, and work with service providers to ensure people experiencing homelessness
are receiving the services they need.

Housing staff track report-backs and work
to identify funding opportunities to support
programs for people experiencing
homelessness. City Council adopted a
Master Temporary Use Permit program to
work with private property owners in
providing temporary shelters.

20. Planning is working with consultants to
develop Objective Design Standards for
ADUs, and received direction from City
Council on December 6, 2022 to return to
City Council with fee waiver, pre-approved
plans, and other streamlining options for the
promotion of ADUs.

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11.1.b
Packet Pg. 220 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division

ACCOMPLISHMENTS

21. Provide semiannual update to City Council on
progress made on the City’s 2018-2023
Affordable Housing Strategy.

22. Continue to engage in strategic housing
advocacy, including comment letters to the
relevant state and/or federal agencies regarding
key housing grant programs.

21. An update on the Affordable Housing
Strategy goals is now provided annually
during the City Council priority-setting
process. Staff are preparing a
comprehensive Affordable Housing
Strategy for 2023.

22. City staff partnered with Oakland and
other cities in September 2022 to submit
comments to CDLAC (California Debt
Limit Allocation Committee)
concerning allocation of tax-exempt
bonds in the Bay Area and to HCD
(Department of Housing and
Community Development) and the
Strategic Growth Council concerning
the AHSC (Affordable Housing and
Sustainable communities) program.

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11.1.b
Packet Pg. 221 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division

OBJECTIVES

1. Leverage additional funds for housing from State and Federal sources for affordable housing.

2. Pursue state and regional funds to support affordable housing projects and programs and to address homelessness in the City.

3. Implement Measure L which increased and expanded the City’s existing Gross Receipts Tax on rental residential properties for affordable housing and support programs.

4. Collaborate with affordable housing developers to ensure widespread marketing and outreach when units are open to applications.

5. Implement annual updates to the Inclusionary Housing Ordinance, including the Inclusionary Guidelines and in-lieu fees, in addition to any necessary amendments to adapt the ordinance to small projects and projects with Accessory Dwelling Units (ADUs).

6. In coordination with the Planning Division, complete the City’s Housing Element and General Plan Annual Progress Report. At least every two years, evaluate the progress on meeting the City’s RHNA and adjust the Sites Inventory as needed,

7. Track the production of inclusionary housing units, ADUs, SB 9 units, and housing for special needs populations.

8. Fully implement the remaining activities associated with the City’s SB 2 Planning Grant award (ADU streamlining).

9. Complete Year 2 tasks in the Partnership for the Bay’s Future/Breakthrough Grant related to housing preservation: implementation of EPA OPA (if adopted); securing additional funding sources for all affordable housing activities; identifying opportunities for housing preservation; and capacity-building for affordable housing preservation in East Palo Alto.

10. Work with other City agencies to ensure that tenants are provided with proper notices and relocation benefits when granted under the Municipal Code.

11. Implement anti-displacement services fair housing and anti-eviction program using Measure O and other qualifying local revenue sources. Execute agreements and administer funding.

Monitor delivery of services and completion of deliverables specified in agreements.

12. Work with the Rent Stabilization Board, in collaboration with the Building Services Division, to ensure that rental units meet the building, housing and safety code standards, so the rent stabilization ordinance’s habitability goals can be accomplished.

13. Assist the City Attorney’s Office and contract legal counsel to draft any needed regulations and amendments to the Rent Stabilization ordinances. Gain approval of amendments from the Board. update forms, notices, and informative materials to reflect any revisions adopted.

14. Work with the IT services provider to make any necessary programming adjustment to the Program’s registration database and petition tracking system.

DB- 70

11.1.b
Packet Pg. 222 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division

OBJECTIVES

15. Conduct community outreach to educate both landlords and tenants of their rights and responsibilities under the City’s ordinances, including distributing an informative Guide to Rent Control in East Palo Alto.

16. Provide information on the requirements for eviction in the ordinances to landlords and tenants, including mailing information to tenants within one business day of receipt of notices of eviction.

17. Under the 2010 Ordinance, issue Certificates of Maximum Allowable Rent for new tenants within five business days of the Board’s receipt of a completed Vacancy Registration Statement to comply with the Ordinance and regulations.

18. Mail 2022-23 Annual Program Fee Statements forms to landlords of regulated rental units under the 1988 Ordinance (regulated mobile home park spaces) in May and under the 2010 Ordinance (regulated residential dwelling units) in November, so landlords can timely submit them and meet the deadlines established by the ordinances.

19. Process pending petitions submitted by landlords and tenants within the timelines established in the Rent Stabilization Ordinance and regulations.

20. Submit notices of noncompliance to landlords when regulated rental units are not properly registered as required by the ordinances and regulations with information about how to comply, the penalty fees that are accruing for noncompliance, and the procedure for submittal of a penalty waiver request for good cause.

21. Develop underwriting guidelines for use in the Inclusionary Housing Ordinance and Commercial Linkage Fee Programs.

22. Coordinate with the County and social service partners to reduce homelessness in East Palo Alto.

23. Implement a comprehensive, cross-departmental strategy for unhoused residents in East Palo Alto that addresses both RVs in the public right of way and residents experiencing homelessness, including but not limited to implementation of Master Temporary Use Permit Program, and employment and services opportunities for people experiencing homelessness

24. Continue to support the low barrier navigation center and emergency shelter operated by WeHope, and explore opportunities to accommodation of at-risk youths, households with children, and persons with disabilities.

25. Encourage smaller-scale housing that is relatively more affordable, including accessory dwelling units (ADUs). Collaborate with 21 Elements and ADU Working Group, and with Planning and Building to develop and implement a “next-phase” strategy for promotion of ADUs, SB 9 units, and any future small development. This includes development code amendments and consideration of free waivers or reductions, financial incentives and preapproved and modular ADU design plans.

26. Provide update to City Council on progress made on the City’s 2018-2023 Affordable Housing Strategy, and develop new 5-year strategic plan.

DB - 71

11.1.b
Packet Pg. 223 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Housing and Economic Development Division

OBJECTIVES

27. Continue to engage in strategic housing advocacy, including comment letters to the relevant state and/or federal agencies regarding key housing grant programs.

28. Create homeownership opportunities for East Palo Alto residents and stability for existing homeowners. Research and report to City Council on barriers to homebuying for households in East Palo Alto and effectiveness of federal, state, and local programs, with recommendation of either a City led program or partnership with local organization.

Determine how such a program should be funded, and whether a Request for Proposals (RFP) is needed.

29. Promote stewardship and preservation of the City’s existing affordable housing stock. By first quarter 2023, report on progress made under existing Below Market Rate (BMR) contract and seek City Council direction on future BMR administration for the issuance of a new Request for Proposals (RFP).

30. Implement an effective and fair housing compliant Local Preference Policy and post to website.

31. Execute agreements and administer Measure HH Pilot Workforce Development Program.

Monitor success of meeting performance goals and quantified metrics.

32. Improve and maintain the Housing and Rent Stabilization webpages as a primary means of communicating information, and expand proactive measures to inform homeowners, landlords and tenants about available local and County housing resources and supportive services.

33. Create a budget at the start of each fiscal year to increase accessibility including:
mailers/non-digital outreach on the Housing workplan items, translation of materials and interpretation for public meetings in alignment with City’s Language Access Plan.

34. Join with other cities in San Mateo County to share housing staff to support longer-term housing initiatives and programs.

DB - 72

11.1.b
Packet Pg. 224 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 1,409,310 443,973 1,163,535 1,256,720 1,256,720 Use of Resources 769,662 1,093,237 14,000 1,445,000 1,256,000 Special Revenue Funds - - - -
Capital Project Funds 5,155 - - -
Enterprise Funds - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 2,184,127 1,537,209 1,177,535 2,701,720 2,512,720 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Planning Division 2,184,127 1,537,209 1,177,535 2,701,720 2,512,720 TOTAL 2,184,127 1,537,209 1,177,535 2,701,720 2,512,720 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 541,428 427,335 766,835 812,081 812,081 Subtotal 541,428 427,335 766,835 812,081 812,081
Supplies and Services
Purchased Services 1,639,879 1,106,086 397,350 1,841,289 1,652,289 Supplies and Materials 2,820 3,530 4,350 4,350 4,350
Capital Expenditures - 259 9,000 44,000 44,000
Other Expenditures - - - -
Subtotal 1,642,699 1,109,875 410,700 1,889,639 1,700,639 TOTAL 2,184,127 1,537,209 1,177,535 2,701,720 2,512,720 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Planning Manager 1.00 1.00 1.00 1.00 1.00
Senior Planner 1.00 1.00 1.00 1.00 1.00
Assistant/Associate Planner 2.00 2.00 2.00 2.00 2.00
Planning Technician - - - 1.00 1.00
TOTAL 4.00 4.00 4.00 5.00 5.00
FY 2023-2024 Budget
Planning Division
Division Summary

COMMUNITY AND ECONOMIC DEVELOPMENT
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COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Planning Division Summary
The functions of the Planning Division include current planning/development review, and advanced/long range planning. In addition to regular staff, the Division also utilizes consultants for special projects and environmental reviews. Core planning functions include, but are not limited to, processing high priority projects, responding to day-to-day inquiries from the public, processing environmental and private development permit applications, updating ordinances and policies to be compliant with state law, and ensuring that divisional operations are conducted in an efficient, professional, and customer-friendly manner. The Development Code is the guiding document for the planners to keep East Palo Alto safe, healthy, and growing in a way the community envisioned.

In the past fiscal year, the recruitment for new planners has been a challenge due to the economy and competition with other jurisdictions and companies. The Division is comprised of a Planning Manager, senior planner, two assistant/associate planners, and a planning technician that was added during this most recent budget cycle. Currently the division is filling the last remaining vacancy, one of the assistant/associate planner positions, and plans to focus on training with the soon to be complete team. Even with the current pandemic, applications, especially for minor projects, have not decreased. To address the workload, the Division has relied on consultant planners and has sought out grant funding to provide support for the zoning code update. Recruitment for the remaining the position, as well as retention of staff, continue to be a priority.

The Planning Division is tasked with completing several other long-range planning efforts such as the Development Code Update for objective design standards (related to SB 9 and 35) and development standards for accessory dwelling units, the General Plan Safety and Health and Equity (Environmental Justice) chapter updates. Planning staff also collaborates with the Housing and Economic Development Manager in the update of the Housing Element and associated annual progress reports.

The Planning Division also supports the work of the Planning Commission, whose resident members are appointed by the City Council. The Planning Commission is required under state law to review and act on matters related to planning and development. The Planning Division will continue to work towards process and systems improvement as part of the objectives described in the objectives section of this narrative.

SERVICE DESCRIPTION
The Planning Division implements the City’s planning policies, which are intended to maintain and enhance the quality of life for City residents and visitors through provision of an attractive and functionally built environment, protection of desirable environmental and scenic amenities, efficient development review. The Division provides quality development review and permitting services through efficient, professional, and customerfriendly public processes under the policy direction of the Planning Commission and ultimately the City Council.

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11.1.b
Packet Pg. 226 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Planning Division Summary
(Continued)

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $1,524,185 (129.4%) from the Adopted FY 2022-23 Budget to the Baseline FY 2023-24 Budget is primarily due to the MCA Planning and Support increase of $1,000,000 and State mandated General plan update of $342,000.

The decrease of $189,000 (-7.0%) from Baseline FY2023-24 to the Proposed FY2023-24 is due to the reduced General plan update expense (-$162,000) and transcription services (-$27,000).

Fiscal Year (FY) Budget $ Change From
Previous
% Change From
Previous
2022-23 Adopted $1,177,535
2023-24 Baseline $2,701,720 $1,524,185 129.4%
2023-24 Proposed $2,512,720 ($189,000) -7.0%
DB- 75

11.1.b
Packet Pg. 227 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Planning Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Ensure Planning Division staff capacity to
handle current and future projects, including
ability to utilize consultants.

1. Staff is utilizing active project spreadsheet
to guide project assignments. Planning has
continued to utilize consultant staff to
process specific projects. The City hired
Good City Company to manage the four
major RBD projects and two major
applications in the West Side Area. Staff to
focus on long range and current planning
that require faster turn around times.

2. Work on both a balanced range of current and
long-range projects to implement city priorities

2. The Planning Division has taken on a range
of current planning projects, such as
residential and commercial redevelopment
and long-range projects such as the Housing
Element and Zoning Code updates.

3. Utilize consultant staff to seamlessly augment
city staff

3. The Planning Division has continued to
utilize contract staff to process larger
applications that would have otherwise
taken up substantial time for staff. This has
enabled staff to focus on projects that
require a faster turnaround time.

4. Staff the public counter efficiently and
effectively

4. Planning has refined the counter schedule
that would best respond to schedule needs
of planners, while ensuring timely
responses to public inquiries. Each staff
member has a city cell phone to enable
direct communication. Counter schedules
are made available to administrative staff to
ensure that there is a planner to respond.

Staff has also implemented an online
appointment system (Bookings) that enables
the public to schedule meetings with
Planning staff on topics that may need
dedicated discussion time.

5. Enhance communication between staff and the
public through outreach efforts

5. Staff has continued to make website
updates, including project information,
CEQA notices and other resources, such as
the ADU resource page. Staff has also
continued to implement the community
outreach policy to provide early and
enhanced outreach for projects of various
sizes. Staff has provided larger mailing
radii for projects of special interest, such as
the RBD update. Staff posts quarterly
updates of pending and approved
administrative level projects.

DB- 76

11.1.b
Packet Pg. 228 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2023-2024 Budget
Planning Division

ACCOMPLISHMENTS

6. Address technology deficiencies, including
website, to better address needs of the public

6. City has executed a contract with Raimi and
Associates to enhance the City’s GIS
capacity. Staff is working with Raimi to
enhance GIS use. City staff has also
obtained training and begun website updates
to provide more information to the public.

Improvements include information on
ADUs, SB 35 and SB 9 implementation.

Staff is also providing regular reports online
with a list of pending projects.

7. Prepare long range and advanced planning
policies consistent with state law

7. Staff has also continued to refine the new
procedure to process housing applications
ministerially in conformance with SB 9 and

35. Training provided to staff and Planning
Commission on recent changes to and
applicability of the Housing Accountability
Act.

8. Continue the growth and training of Planning
Division staff

8. The Division actively encourages staff to
seek training opportunities, especially now
that most training is offered remotely. Staff
has continued to take trainings when time
permits. Trainings include CEQA, planning
law updates, including housing, GIS, and
APA conferences.

9. Improve record keeping and enhance access to
records

9. The Planning staff has continued to obtain
and consolidate records onto SharePoint,
ensuring that the records are readily
available. Staff has developed a Planner
FAQ to list all the various resources in one
place.

10. Respond to state mandates in a timely manner
regards to housing based on local needs,
including SB 9 and SB 35.

10. Staff has obtained training and developed
processes and materials to implement the
new State mandates for housing. This has
included website updates, training materials
and handouts for the public.

DB- 77

11.1.b
Packet Pg. 229 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

COMMUNITY AND ECONOMIC DEVELOPMENT
2023-2024 Budget
Planning Division

OBJECTIVES

1. Ensure Planning Division staff capacity to handle current and future projects, including ability to utilize consultants.

2. Work on both a balanced range of current and long-range projects to implement city priorities.

3. Utilize consultant staff to seamlessly augment city staff.

4. Staff the public counter efficiently and effectively.

5. Enhance communication between staff and the public through outreach efforts.

6. Address technology deficiencies, including website, to better address needs of the public.

7. Prepare long range and advanced planning policies consistent with state law.

8. Continue the growth and training of Planning Division staff.

9. Improve record keeping and enhance access to records.

10. Respond to state mandates in a timely manner regards to housing based on local needs, including SB 9 and SB 35.

DB- 78

11.1.b
Packet Pg. 230 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2023-24
Operating $7,095,785
Positions 21.45
DB- 79

11.1.b
Packet Pg. 231 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 125,300 91,096 935,099 997,153 997,153 Use of Resources 3,368,303 3,250,049 3,433,150 4,190,145 3,836,579 Special Revenue Funds 694,621 853,359 1,317,284 1,672,934 1,517,934 Capital Project Fund 40,685 40,000 40,000 160,000 243,333 Enterprise Funds 343,552 548,193 565,189 492,453 500,786 Succesor Agency Trust Fund - - - - -
TOTAL 4,572,461 4,782,697 6,290,722 7,512,685 7,095,785 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 879,491 840,545 840,851 951,459 876,459 Engineering Division 1,187,280 905,023 1,359,249 1,583,553 1,833,553 Maintenance Division 2,787,947 2,754,872 4,090,622 4,977,672 4,385,772 TOTAL 4,572,461 4,782,697 6,290,722 7,512,685 7,095,785 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 2,562,436 2,585,222 3,229,572 3,636,635 3,636,635 Subtotal 2,562,436 2,585,222 3,229,572 3,636,635 3,636,635 Supplies and Services
Purchased Services 1,498,324 1,691,501 2,193,850 2,621,300 2,516,300 Supplies and Materials 461,596 468,452 648,700 706,250 659,350 Capital Expenditures 50,105 37,523 218,600 548,500 283,500 Other Expenditures - - - - -
Subtotal 2,010,025 2,197,475 3,061,150 3,876,050 3,459,150 TOTAL 4,572,461 4,782,697 6,290,722 7,512,685 7,095,785 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division1 4.50 2.00 4.45 4.45 4.45
Engineering Division 5.00 3.75 5.00 5.00 5.00
Maintenance Division 12.00 12.00 12.00 12.00 12.00
TOTAL 19.00 20.25 21.45 21.45 21.45
¹ Enviormental Programs transferred to CEDE Administration effective FY 2022 Baseline.

PUBLIC WORKS DEPARTMENT
FY 2023-24 Budget
Department Summary
DB - 80

11.1.b
Packet Pg. 232 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Department Summary
The Public Works Department includes the Administrative, Environmental, Engineering, and Maintenance Divisions.

Divisions Overview:

Administration Division
Administration performs oversight of Engineering, Environmental and Maintenance; and also performs direct budget preparation, scheduling, and operational contract and invoice payment processing.

Administration performs a variety of direct collaboration with stakeholders including the San Francisquito Creek Joint Powers Authority flood control projects, Cal TRANS transportation issues, BAWSCA water related issues, and general county-statewide collaboration with CCAG and MTC and local environmental programs
Environmental Division
The Environmental division overseas a number of environmental contracts including solid waste/recycling trash services, street sweeping, tree services (Canopy) as well as planing and public education (Grassroots Ecology). The Environmental Division is responsible for coordination with the County on environmental sustainability programs as well as implementation of the City’s Climate Action Plan. The Division also ensures compliance with the NPDES permit which includes the business/industial/restaurant inspection program. This Division is also responsible for implementing the City’s Clean City program.

Engineering Division
The Engineering Division oversees the design, development and construction of public works capital projects and facilities, including streets and roadways, water supply, and storm drainage systems.

The Division is responsible for issuing permits for any work to be performed on City right-of- way and performs various reviews related to private development projects, and prepares grant applications Maintenance Division
The Maintenance Division is responsible for the day-to-day maintenance of all City-owned facilities, parks and infrastructure. It coordinates and assists other departments with the use of City facilities during special events, holidays, as well as the general use of City facilities and parks.

MISSION STATEMENT
The Public Works Department provides administrative, engineering and maintenance services that ensure the design, construction, maintenance, and operation of public infrastructure, parks, and facilities, are high-quality and sufficient to the meet the needs of East Palo Alto residents, businesses, and visitors.

DB- 81

11.1.b
Packet Pg. 233 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Total FTE’s: 21.45

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget

PUBLIC WORKS DIRECTOR
Humza Jave
d
Administrative
Assistant
Administration Engineering Maintenance
City Engineer
Public Works
Supervisor
Maintenance
Manager
Maintenance
Worker I (3.0)
Maintenance
Worker II (5.0)
Maintenance
Worker III (2.0)
Secretary I Management
Analyst II
Environmental
Services Aide
(1.45)
Senior Engineer
Assistant/Associate
Engineer
Associate Engineer
DB- 82

11.1.b
Packet Pg. 234
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 670,182 489,674 593,247 634,907 634,907 Special Revenue Funds 95,625 182,640 136,302 123,026 123,026 Capital Project Funds - - - - -
Enterprise Funds 113,685 168,232 111,302 193,526 118,526 Succesor Agency Trust Fund - - - -
TOTAL 879,491 840,545 840,851 951,459 876,459
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 582,791 502,442 448,501 480,968 480,968 Environmental Programs1 296,699 338,104 392,350 470,491 395,491 TOTAL 879,491 840,545 840,851 951,459 876,459
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 591,392 494,229 691,251 741,859 741,859 Subtotal 591,392 494,229 691,251 741,859 741,859
Supplies and Services
Purchased Services 276,892 330,453 141,050 201,850 126,850 Supplies and Materials 11,207 15,863 8,550 7,750 7,750
Capital Expenditures - - - -
Other Expenditures - - - -
Subtotal 288,098 346,316 149,600 209,600 134,600
TOTAL 879,491 840,545 840,851 951,459 876,459
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Public Works Director 1.00 1.00 1.00 1.00 1.00
Management Analyst II¹ - 1.50 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Environmental Service Aide¹ ² - 1.00 1.45 1.45 1.45
TOTAL 2.00 4.50 4.45 4.45 4.45
¹ Transferred from/to Community and Economic Development in FY2021 ²
FY 2023-24 Budget
Admininstration Division
Division Summary

PUBLIC WORKS DEPARTMENT
Temporary Freeze of Vacant Position FY 2020-21
DB- 83

11.1.b
Packet Pg. 235 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Administration Division Summary
The Division is responsible for the oversight of a wide range of functions including:
 Maintaining existing streets, utilities and facilities.  Developing and managing the City’s Ten-Year Capital Improvement Program.  As the environmental coordinator for the City, ensuring compliance with the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA).  Serving as the Disabled Access Coordinator to ensure safe and reasonable access for all citizens under the Americans with Disabilities Act (ADA) and California Title 24.  Managing storm water efforts to ensure compliance with the Clean Water Act and other mandates of the San Francisco Bay Regional Water Quality Control Board.  Providing staff support to the City Council and Public Works and Transportation Commission  Monitoring and collaborating with regional organizations (e.g., City/County Association of Governments (C/CAG), Metropolitan Transportation Committee (MTC), the Association of Bay Area Governments (ABAG), the South Bayside Waste Management Authority and the San Francisquito Creek Joint Powers Authority).
.

Through these core functions, the Department supports Council Strategic Priorities by undertaking the following initiatives:

1. Enhance Public Safety and Emergency Preparedness
 Conduct inspections for new construction, remodels and public improvements throughout the City.
 Coordinate with Menlo Park Fire Protection District, West Bay Sanitary District, East Palo Alto Sanitation District, Palo Alto Park Mutual Water Company and other entities on new development and infrastructure projects.  Coordinate and collaborate with East Palo Police Department, MPFPD and others on emergency preparedness efforts.
 Maintain the storm drain system including the O’Connor Pump Station, streets and other infrastructure.
 Continue to abate graffiti and illegal dumping on public facilities, within parks and adjacent to City streets.

2. Enhance Economic Vitality
 Continue to implement capital projects with particular focus on water supply and transportation projects.

SERVICE DESCRIPTION
The Public Works Administration Division provides oversight of the engineering and maintenance and environmental services that ensure the design, construction, maintenance, and operation of public infrastructure, parks, and facilities, are high-quality and sufficient to the meet the needs of East Palo Alto residents, businesses, and visitors.

DB- 84

11.1.b
Packet Pg. 236 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Administration Division Summary
(Continued)

3. Increase Organizational Effectiveness
 Develop software to provide reports and other information to the City Manager and Finance Department.
 Attend and monitor activities of special districts and regional agencies/authorities that affect the City of East Palo Alto.  More fully implement the IWORQ software within Maintenance.  Evaluate opportunities to utilize interns.

4. Improve Public Facilities and Infrastructure
 Complete construction of Bay Road and related downstream infrastructure.  Complete construction of Bike/Pedestrian improvements throughout the City by implementing the City Bicycle Transportation Plan.
 Complete the Design of the University Avenue/HWY 101 Interchange Project  Complete design and start construction of Addison Streets Green Infrastructure Improvements Project.
 Start the design of University Avenue Grand and Complete Street Improvement Project.
 Complete the design and construction of 2021 Street Resurfacing Project  Implement projects included in the FY 2020-22 Capital Budget  Initiate work on preventive maintenance program to extend the life of streets and roads to reduce overall maintenance cost of city streets network.  Coordinate with SFCJPA on implementation of flood control projects, including Reach 2, Upstream Project and SAFER Bay Project.

5. Improve Communication and Enhance Community Engagement  Provide articles for City Newsletter and City Manager Notes and Quotes.

6. Create a Healthy and Safe Community
 Evaluate opportunities to enhance/expand parks and open space opportunities.

DB - 85

11.1.b
Packet Pg. 237 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Administration Division Summary
(Continued)

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $110,608 (13.2%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to the Consultant hiring to assist Storm Water Program Compliance and other operating expenses increased.

The decrease of $75,000 (-7.9%) from the Baseline FY23-24 Budget to the Proposed FY23-24 Budget is that the Division will use FY 22-23 Budget savings for a Consultant for Storm Water Program Compliance.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $840,851
2023-24 Baseline $951,459 $110,608 13.2%
2023-24 Proposed $876,459 ($75,000) -7.9%
DB- 86

11.1.b
Packet Pg. 238 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Administration Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Assist in oversight and management of the City’s
water operator.

1. Ongoing

2. Assist in management of over a dozen contracts,
purchase orders, and processing of invoices

2. Ongoing

3. Assist in monitoring and adjustment of the Gloria
Way well water treatment system to provide
redundancy in the water supply in case of water
interruption or emergencies at the SFPUC Hetch
Hetchy Water Supply Aqueduct System.

3. Ongoing

4. Oversee groundwater management and
monitoring

4. Ongoing

5. Coordinate with neighboring cities, Regional
agencies, and water providers regarding various
city activities and operations

5. Ongoing

6. Provide staff support the Public Works and
Transportation Commission

6. Ongoing

7. General Administration support for the
Environmental Division, Maintenance Division,
and Engineering Division

7. Ongoing
DB- 87

11.1.b
Packet Pg. 239 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Administration Division

OBJECTIVES

1. Assist in oversight and management of the City’s water operator.

2. Assist in management of over a dozen contracts, purchase orders, and processing of invoices

3. Assist in monitoring and adjustment of the Gloria Way well water treatment system to provide redundancy in the water supply in case of water interruption or emergencies at the SFPUC Hetch Hetchy Water Supply Aqueduct System.

3. Oversee groundwater management and monitoring

4. Coordinate with neighboring cities, Regional agencies, and water providers regarding various city activities and operations

5. Provide staff support the Public Works and Transportation Commission

6. General Administration support for the Environmental Division, Maintenance Division, and Engineering Division
DB- 88

11.1.b
Packet Pg. 240 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 125,300 91,096 935,099 997,153 997,153 Use of Resources 521,034 782,433 31,650 201,400 284,734 Special Revenue Funds 64,604 22,622 50,000 100,000 100,000 Capital Project Fund 40,685 40,000 40,000 160,000 243,333 Enterprise Funds 153,400 251,128 302,500 125,000 208,333 Succesor Agency Trust Fund - - - - -
TOTAL 905,023 1,187,280 1,359,249 1,583,553 1,833,553
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Engineering Division 905,023 1,187,280 1,359,249 1,583,553 1,833,553 TOTAL 905,023 1,187,280 1,359,249 1,583,553 1,833,553
CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 558,247 765,367 870,099 947,153 947,153 Subtotal 558,247 765,367 870,099 947,153 947,153
Supplies and Services
Purchased Services 315,952 417,681 477,800 626,400 876,400 Supplies and Materials 2,930 4,232 7,750 6,500 6,500
Capital Expenditures 27,894 - 3,600 3,500 3,500
Other Expenditures - - - - -
Subtotal 346,776 421,913 489,150 636,400 886,400
TOTAL 905,023 1,187,280 1,359,249 1,583,553 1,833,553
AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Assistant/Associate Engineer 2.00 1.75 2.00 2.00 2.00
City Engineer 1.00 1.00 1.00 1.00 1.00
Public Works Supervisor 1.00 1.00 1.00 1.00 1.00
Senior Engineer 1.00 - 1.00 1.00 1.00
TOTAL 5.00 3.75 5.00 5.00 5.00

PUBLIC WORKS DEPARTMENT
FY 2023-24 Budget
Engineering Division
Division Summary
DB- 89

11.1.b
Packet Pg. 241 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Engineering Division Summary
The Engineering Division is responsible for the maintenance and enhancement of existing infrastructure and public facilities as well as the design and construction of new public projects and infrastructure.

Additionally, the Division is responsible for review and inspection of improvements required as part of new private developments. The Division provides primary support to the City’s Public Works and Transportation Commission, in accordance with the Municipal Code.

The Division strategically addresses the following on an ongoing basis:
 Capital Improvement Program and projects.
 Storm drain and flood protection.
 Roads/traffic and transportation (new facilities, major rehabilitation and regular maintenance);  Water utilities.
 NPDES and related Clean Water Act requirements.
 Encroachment & Grading Permits and land development/plan review.  Coordination with Caltrans and other agencies; and
 Disaster/emergency preparedness, mitigation, and recovery.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $224,304 (16.5%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to the limited term staff hiring to oversee Safer Bay Capital Project ($120,000) and Asset Management software purchase $120,000).

The increase of $250,000 (15.8%) from the FY 2023-24 Baseline Budget to the FY 2023-24 Proposed Budget is due to the impact fee studies for RBD.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $1,359,249
2023-24 Baseline $1,583,553 $224,304 16.5%
2023-24 Proposed $1,833,553 $250,000 15.8%

SERVICE DESCRIPTION
The Engineering Division develops and manages master infrastructure plans and capital projects to enhance community, economic and business development, and retention. It manages the transportation network, coordinates maintenance of streets, facilities and infrastructure and provides development review services, ensuring adequate public improvements and services to existing and new development.

DB- 90

11.1.b
Packet Pg. 242 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Engineering Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Closeout Bay Road Phase II/III Improvements
Project

1. Complete

2. Design and construct the 21/22 Annual Street
Resurfacing Project

2. Complete

3. Complete sidewalk improvements as part of the
Sidewalk Improvement Program

3. Complete

4. Install bike lanes per the City’s adopted Bicycle
Transportation Plan

4. Complete

5. Coordinate/Collaborate with SFC JPA on
Design, Entitlements, & Permitting of Phase II
Upstream Flood Control Project

5. Ongoing

6. Coordinate with City of Palo Alto on the design
completion of the Newell Bridge Replacement
Project

6. Ongoing

7. Implement traffic calming per the Mobility
Study

7. Ongoing

8. Award a construction contract for the Addison
Avenue Improvements Project.

8. Complete

9. Complete construction of the Street Light
Improvement Project

9. Ongoing

10. Secure construction funding and begin design of
the 12” Water Transmission main along
University Avenue

10. Ongoing

11. Secure construction funding and begin
construction of the Woodland water main
project

11. Ongoing

12. Complete design package of the City Hall
Tenant Improvements project

12. Ongoing
DB- 91

11.1.b
Packet Pg. 243 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Engineering Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

13. Coordinate Bay trail access with MidPen Open
Space and San Francisco Public Utilities
Commission (SFPUC) at locations in the
northeast part of the City.

13. Ongoing

14. Work with SFPUC towards a fourth water
turnout in the City

14. Ongoing

15. Award a construction contract for the University
Avenue/101 pedestrian overcrossing project

15. Complete

16. Complete the plans, specifications, and
estimates (PS&E) package for the Demeter
Waterline loop project.

16. Ongoing

17. Complete plans, specifications, and estimate
(PS&E) package for the Joel Davis Park
Restroom project

17. Complete

18. Award a design contract for the University
Avenue safety improvements project for various
traffic signal and intersection safety
improvements

18. Complete

19. Scope and preliminary design of O’Connor
Pump station improvements

19. Ongoing

20. Perform review and approval of development
projects throughout the City

20. Ongoing
DB- 92

11.1.b
Packet Pg. 244 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Engineering Division

OBJECTIVES

1. Closeout grants associated with the Bay Road Phase II/III Improvements Project

2. Design the 2024 Annual Street Resurfacing Project

3. Complete sidewalk improvements as part of the Sidewalk Improvement Program

4. Install bike lanes per the City’s adopted Bicycle Transportation Plan

5. Coordinate/Collaborate with SFC JPA on Design, Entitlements, & Permitting of Reach II Upstream Flood Control Project as well as the Safer Bay Project

6. Coordinate with City of Palo Alto on the design completion of the Newell Bridge Replacement Project

7. Continue implementation of the Climate Action Plan

8. Complete construction of the Addison Avenue Improvements Project and closeout grant reimbursements

9. Complete construction of the Street Light Improvement Project

10. Complete design of the 12” Water Transmission main along University Avenue and begin construction

11. Complete design of the 12” Watermain along Weeks Street and begin construction

12. Begin construction of the Woodland Avenue Watermain gap and Palo Alto intertie project

13. Coordinate Bay trail access with MidPen Open Space and San Francisco Public Utilities Commission (SFPUC) at Rutgers Street

14. Work with SFPUC towards a fourth water turnout in the City

15. Begin construction of the 101 pedestrian overcrossing project

16. Complete the plans, specifications, and estimates (PS&E) package for the Demeter Waterline loop project.

17. Begin construction of the Joel Davis Park Restroom project

18. Complete design for the University Avenue safety improvements project for various traffic signal and intersection safety improvements

19. Scope and preliminary design of O’Connor Pump station improvements

20. Perform review and approval of development projects throughout the City

21. Complete conceptual design plans for the East Bayshore sidewalk improvements project

22. Prepare a permit parking pilot program

23. Work towards identifying options for additional water storage DB- 93

11.1.b
Packet Pg. 245 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - -
Use of Resources 2,177,087 1,977,942 2,808,253 3,353,838 2,916,938 Special Revenue Funds 534,393 648,097 1,130,982 1,449,908 1,294,908 Capital Project Fund - - - - -
Enterprise Funds 76,467 128,833 151,387 173,927 173,927 Succesor Agency Trust Fund - - - -
TOTAL 2,787,947 2,754,872 4,090,622 4,977,672 4,385,772 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Maintenance Division 2,787,947 2,754,872 4,090,622 4,977,672 4,385,772 TOTAL 2,787,947 2,754,872 4,090,622 4,977,672 4,385,772 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 1,412,796 1,325,626 1,668,222 1,947,622 1,947,622 Subtotal 1,412,796 1,325,626 1,668,222 1,947,622 1,947,622 Supplies and Services
Purchased Services 905,480 943,367 1,575,000 1,793,050 1,513,050 Supplies and Materials 447,460 448,357 632,400 692,000 645,100 Capital Expenditures 22,211 37,523 215,000 545,000 280,000 Other Expenditures - - - -
Subtotal 1,375,151 1,429,247 2,422,400 3,030,050 2,438,150 TOTAL 2,787,947 2,754,872 4,090,622 4,977,672 4,385,772 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Maintenance Manager 1.00 1.00 1.00 1.00 1.00
Maintenance Worker I 4.00 4.00 4.00 4.00 3.00
Maintenance Worker II 4.00 4.00 4.00 4.00 5.00
Maintenance Worker III 2.00 2.00 2.00 2.00 2.00
Secretary I 1.00 1.00 1.00 1.00 1.00
TOTAL 12.00 12.00 12.00 12.00 12.00
Maintenance Division
Division Summary

PUBLIC WORKS DEPARTMENT
FY 2023-24 Budget
DB - 94

11.1.b
Packet Pg. 246 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Maintenance Division
The Maintenance Division is dedicated to excellence, integrity, and stewardship. To protect public health, safety, and welfare of the community by providing services for parks and open spaces, street maintenance, storm water and pump station maintenance, illegal dumping and graffiti abatement program, facilities maintenance, street lighting and traffic signal maintenance, sidewalk maintenance, fleets and equipment preventive maintenance. The Division performs a range of functions, including:
 Drainage District: Maintain the citywide storm drainage system, including operation of O’Connor pump station. Ensure compliance with National Pollution Discharge Elimination System (NPDES) mandates of the San Francisco Bay Regional Water Quality Control Board.  Facilities: Provide maintenance services to the Senior Center facility, Police Department, Police substation, Corporation Yard, Community Development, Cooley Landing building, Reentry Program, Space at YMCA, Jack Farrell Park and MLK Park concession buildings.  Parks: Maintain Martin Luther King Jr., Jack Farrell, Bell Street, Joel Davis, Cooley Landing, and the Newbridge pocket park and Bay Road pocket parks.
 Open Space Landscaping: Maintain Street medians, alleyways, sound walls, Pad-D, 965 Weeks and the Rail Spurs.
 Trees: Prune and maintain health of approximately 7,000 trees in public right of ways, parks and city facilities.
 Graffiti Abatement Program: Remove graffiti in public right of way, facilities, bus shelters, parks, playgrounds, on regulatory signage, Bay Trails, traffic signal controller cabinets and the pump station area.
 Sidewalks: Repair broken and uplifted sidewalks to prevent pedestrian trip and fall.  Street: Maintaining existing streets and shoulders, repair potholes and pavement crack sealant project throughout the city.
 Regulatory Signages: Install new regulatory signage and repair damaged signage including recently approved additional stop signs.
 Red Curb: Maintain over four (4) miles of red- curbs (no parking zones) throughout the City.  Illegal Dumping: Respond to the Clean City Program by picking up illegal dumping including hazardous material citywide.
 Street Sweeping Program: Install new signage; repair damaged signs.  Fleet: Manage repair and services of Community Development and Public Works Department vehicles.
 Traffic Control: Provide traffic control for Covid-19 testing and vaccination sites including food give a way at the Boys & Girls Club daily.
 Emergency: Respond to afterhours and weekend emergencies 24/7.

SERVICE DESCRIPTION
The Maintenance Division provides maintenance of parks, open spaces, medians, street landscaping, streetlighting, sidewalks, and city facilities. The Division operates and manages storm drain facilities including O’Connor Pump Station. The Division addresses graffiti abatement in public areas, fleet services, and managing multiple municipal service contracts.

DB- 95

11.1.b
Packet Pg. 247 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Maintenance Division

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $887,050 (21.7%) from the Adopted FY 22-23 Budget to the Baseline FY 23-24 Budget is primarily due to the combination of increased expenditures of personnel and merit ($280,000), Janitorial services ($60,000), Tate building roof ($80,000), Pump replacement ($45,000), Vehicles purchases (200,000), and other operating expenses.

The decrease of $591,900 (11.9%) from the Baseline FY 23-24 Budget to the Proposed FY 23-24 Budget is due to the combination of reduced expenditures of US 101 Street maintenance ($40,000), General building maintenance ($155,000), Janitorial services (63,000), Moved to CIP budget ($100,000), Other improvement budgets ($145,000).

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $4,090,622
2023-24 Baseline $4,977,672 $887,050 21.7%
2023-24 Proposed $4,385,772 ($591,900) -11.9%
DB- 96

11.1.b
Packet Pg. 248 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Maintenance Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Respond to public work order requests. 1. Done and ongoing

2. Maintenance of public spaces, facilities, and
public right of way.

2. Done and ongoing

3. Maintenance of stormwater and underground
utilities.

3. Done and ongoing

4. Abatement of graffiti and/or illegal dumping
in the public right-of-way.

4. Done and ongoing

5. Maintaining and operating O’Connor pump
station

6. Coordinate baseball field renovations at MLK
Park

7. Replace heat pump at the Police station

5. Done and ongoing

6. Done

7. Done
DB- 97

11.1.b
Packet Pg. 249 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

PUBLIC WORKS DEPARTMENT
FY 2023-2024 Budget
Maintenance Division

OBJECTIVES

1. Increase facility maintenance and repair due to aging facilities.

2. Increase public tree pruning to prevent property damages.

3. Finalizing the Land Use Covenant (LUC) and the Operations and Maintenance (O&M) amendment for Cooley Landing regarding sea level rise.

4. Provide training for the maintenance staff to become certified with California Environmental Water Association.

5. To repair more damaged and uplifting sidewalk to prevent trip and fall.

DB- 98

11.1.b
Packet Pg. 250 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES

AUTHORIZED STRENGTH
FY 2023-24
Operating $15,733,306
Positions 49.60
DB- 99

11.1.b
Packet Pg. 251 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 353,230 3,030,489 3,258,389 1,738,054 1,038,053 Use of Resources 10,936,245 9,746,825 10,789,755 13,686,807 14,369,024 Special Revenue Funds 231,185 565,660 227,240 106,729 326,229 Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 11,520,660 13,342,973 14,275,384 15,531,590 15,733,306 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 4,551,350 4,373,591 5,306,002 5,180,865 5,382,581 Investigations Division 1,192,075 1,738,665 1,738,665 2,117,373 2,117,373 Operations Division 5,777,235 7,230,717 7,230,717 8,233,352 8,233,352 TOTAL 11,520,660 13,342,973 14,275,384 15,531,590 15,733,306 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 8,205,257 10,088,132 10,431,415 11,757,160 11,952,762 Subtotal 8,205,257 10,088,132 10,431,415 11,757,160 11,952,762 Supplies and Services
Purchased Services 2,829,519 2,741,443 3,394,669 3,183,930 3,186,544 Supplies and Materials 335,477 355,929 359,300 415,500 415,500 Capital Expenditures 150,406 157,469 90,000 175,000 178,500 Other Expenditures - - - - -
Subtotal 3,315,402 3,254,841 3,843,969 3,774,430 3,780,544 TOTAL 11,520,659 13,342,973 14,275,384 15,531,590 15,733,306 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 9.00 9.00 9.00 8.00 8.00
Investigations Division 11.15 10.25 10.25 11.25 11.25
Operations Division 27.00 30.35 30.35 30.35 30.35
TOTAL 47.15 49.60 49.60 49.60 49.60

POLICE DEPARTMENT
FY 2023-2024 Budget
Department Summary

11.1.b
Packet Pg. 252 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Department Summary
The Divisions of the Police Department consist of Administration, Investigations and Operations.

The emphasis of Fiscal Year 2023 - 2024 budget is to improve current service levels to the public. Attention will be focused on the priority of employee and organizational development, as well as community policing and crime reduction. In addition, the department will focus on ongoing maintenance of mandated services for general law enforcement, vehicle abatement and emergency response (as a single agency or in concert with other federal, state, and/or local agencies). The Police Department will strive for successful completion of the following strategic priorities:

Administration:

1. Develop a Detailed Strategy around the development of the future Police Department

2. Ongoing Recruitment of New Personnel
Operations:

1. Develop a temporary traffic enforcement program

2. Train New Police Personnel
Investigations:

1. Appoint and Train one new detective

2. Resume Cold Case Investigations

3. Train and develop Community Service Officers
Note: The establishment of a Pilot Traffic Enforcement Division for the Police Department is modified pending funding availability.

MISSION STATEMENT
The Mission of the East Palo Alto Police Department is to provide quality police service and work in partnership with the community to preserve the peace, establish a safe environment and do so with emphasis on mutual trust and respect.

DB- 101

11.1.b
Packet Pg. 253 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Total FTE’s: 49.60

POLICE DEPARTMENT
FY 2023-2024 Budget
David Team
1 Sgt., 6 Officers
Police Sergeant (1)
Property & Evidence
Property Officer
Police Officer (4)
Adam Team
1 Sgt., 6 Officers
Charles Team
1 Sgt., 6 Officers
MANAGEMENT ANALYST II (1 yr TERM)
Operations
Commander Investigations Commander Administrative Services Boy Team
1 Sgt., 6 Officers Community Services Officer (3)
PT Cold Case Investigator
(.45)

POLICE CHIEF
Jeff Liu
Administrative
Manager
PT Community Service
Officer (1.8)
Records Unit
Supervisor (1)
Records Clerks I/II (4)
Reserve Officer 3PT
(1.35)
DB- 102

11.1.b
Packet Pg. 254
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 30,055 203,542 431,442 180,000 180,000 Use of Resources 4,401,112 3,702,130 4,745,060 4,931,365 4,913,581 Special Revenue Funds 120,183 467,919 129,500 69,500 289,000 Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 4,551,350 4,373,591 5,306,002 5,180,865 5,382,581 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Administration Division 4,551,350 4,373,591 5,306,002 5,180,865 5,382,581 TOTAL 4,551,350 4,373,591 5,306,002 5,180,865 5,382,581 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 1,363,447 1,266,750 1,610,033 1,568,435 1,764,037 Subtotal 1,363,447 1,266,750 1,610,033 1,568,435 1,764,037 Supplies and Services
Purchased Services 2,824,534 2,741,443 3,394,669 3,183,930 3,186,544 Supplies and Materials 212,962 207,929 211,300 253,500 253,500 Capital Expenditures 150,406 157,469 90,000 175,000 178,500 Other Expenditures - - - - -
Subtotal 3,187,902 3,106,841 3,695,969 3,612,430 3,618,544 TOTAL 4,551,350 4,373,591 5,306,002 5,180,865 5,382,581 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Police Chief 1.00 1.00 1.00 1.00 1.00
Administrative Manager 1.00 1.00 1.00 1.00 1.00
Police Property Officer 1.00 1.00 1.00 1.00 1.00
Police Record's Clerk I/II 4.00 4.00 4.00 4.00 4.00
Police Record's Supervisor 1.00 1.00 1.00 1.00 1.00
Police Sergeant 1.00 1.00 1.00 - -
TOTAL 9.00 9.00 9.00 8.00 8.00
Administration Division
Division Summary

POLICE DEPARTMENT
FY 2023-2024 Budget
DB- 103

11.1.b
Packet Pg. 255 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Administration Division Summary
Under the supervision of the Chief of Police and the Support Administrative Manager, the Division is comprised of the Records Division, including the Property and Evidence officer. The Administration Division has a direct staffing level of 8.0 positions and one of 1-year term Management Analyst II.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The decrease of $125,137 (-2.4%) from the Adopted FY 2022-23 Budget to the Baseline FY 2023-24 Budget is primarily due to the decreased personnel costs ($41,600) and county services such as message services ($44,000) and animal control ($77,000), offset by rolling stock and general operating expenses.

The increase of $201,716 (3.9%) from the Baseline FY 2023-24 Budget to the Proposed FY 2023-24 Budget is mainly due to the personnel cost ($195,600).

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $5,306,002
2023-24 Baseline $5,180,865 ($125,137) -2.4%
2023-24 Proposed $5,382,581 $201,716 3.9%

SERVICE DESCRIPTION
The Administration Division provides direction, coordination and oversight to police employees and operations involving grants, contracts, policy matters, training, discipline, and purchasing.

DB- 104

11.1.b
Packet Pg. 256 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Administration Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Develop a detailed strategy for the new Police
Department Building.

1. Ongoing project with the City Manager’s
Office

2. Ongoing Recruitment of New Personnel 2. 14 employees hired in FY 22/23 (11 sworn, 3 professional)

3. Increase staff development and training 3. Training and development has been primarily focused on training new
personnel.

DB- 105

11.1.b
Packet Pg. 257 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Administration Division

OBJECTIVES

1. Develop a detailed strategy for the new Police Department Building.

2. Ongoing Recruitment of New Personnel.

3. Increase staff development and training.

DB- 106

11.1.b
Packet Pg. 258 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Division Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 287,645 101,788 642,924 858,053 858,053 Use of Resources 798,199 131,053 1,033,824 1,222,091 1,222,091 Special Revenue Funds 106,231 980,533 61,917 37,229 37,229 Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
TOTAL 1,192,075 1,213,375 1,738,665 2,117,373 2,117,373 EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Investigations Division 1,192,075 1,213,375 1,738,665 2,117,373 2,117,373 TOTAL 1,192,075 1,213,375 1,738,665 2,117,373 2,117,373 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 1,186,203 1,213,375 1,728,665 2,107,373 2,107,373 Subtotal 1,186,203 1,213,375 1,728,665 2,107,373 2,107,373 Supplies and Services
Purchased Services 1,420 - - - -
Supplies and Materials 4,452 - 10,000 10,000 10,000
Capital Expenditures - - - - -
Other Expenditures - - - - -
Subtotal 5,872 - 10,000 10,000 10,000
TOTAL 1,192,075 1,213,375 1,738,665 2,117,373 2,117,373 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Commander 1.00 1.00 1.00 1.00 1.00
Police Officer 6.00 6.00 4.00 4.00 4.00
Police Sergeant - - - 1.00 1.00
Community Services Officer 1.00 1.00 3.00 3.00 3.00
Cold Case Investigator (PT) 0.45 0.45 0.45 0.45 0.45
Community Services Officer (4 PT) 2.70 2.70 1.80 1.80 1.80 TOTAL 11.15 11.15 10.25 11.25 11.25
Investigations Division

POLICE DEPARTMENT
FY 2023-2024 Budget
DB-107

11.1.b
Packet Pg. 259 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Investigations Division Summary
Under the direct supervision of the Criminal Investigations Commander, the Investigations Division is comprised of (1) Detective Sergeant (4) Police Officers (Detectives) and (1) Part-time Detective Investigating “Cold Case” Homicides.

Additionally, The Detective Sergeant is responsible for up to (3) Permanent Full-Time and (4) Part-Time Community Service Officers assigned to Parking Enforcement, high visibility patrols, and low level criminal investigations.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $378,708 (21.8%) from the Adopted FY 2022-23 Budget to the Baseline FY 2023-24 Budget is primarily due to personnel cost.

There is no change from the FY 2023-24 Base Budget to the FY 2023-24 Proposed Budget.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $1,738,665
2023-24 Baseline $2,117,373 $378,708 21.8%
2023-24 Proposed $2,117,373 $0 0.0%

SERVICE DESCRIPTION
The Investigations Division conducts all major criminal investigations, including homicides and aggravated assaults.

DB- 108

11.1.b
Packet Pg. 260 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Investigations Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Resume Cold Case Investigations 1. Cold case investigations have been ongoing, although the cold case investigator has been
assisting with new homicide cases, which
resulted in a 100% clearance rate in 2022

2. Train new CSA’s 2. New Community Service Officer position was established, replacing the CSA
classification. CSO hiring and training is
ongoing

3. Appoint and train a new detective 3. Detective Richard Moore was appointed and trained
DB- 109

11.1.b
Packet Pg. 261 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Investigations Division

OBJECTIVES

1. Resume Cold Case Investigations

2. Establish an Intern program through local universities to assist with investigations and recruit future police officers

3. Appoint and train a new detective
DB- 110

11.1.b
Packet Pg. 262 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Division Summary
SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services 35,530 35,530 2,184,023 700,001 - Use of Resources 5,736,935 6,140,043 5,010,871 7,533,351 8,233,352 Special Revenue Funds 4,770 4,770 35,823 - -
Capital Project Fund - - - - -
Enterprise Funds - - - - -
Succesor Agency Trust Fund - - - - -
5,777,235 6,180,343 7,230,717 8,233,352 8,233,352
EXPENDITURES BY DIVISION FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Operations Division 5,777,235 6,180,343 7,230,717 8,233,352 8,233,352 TOTAL 5,777,235 6,180,343 7,230,717 8,233,352 8,233,352 CHARACTER OF EXPENDITURES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Personnel
Salaries and Benefits 5,655,606 6,046,575 7,092,717 8,081,352 8,081,352 Subtotal 5,655,606 6,046,575 7,092,717 8,081,352 8,081,352 Supplies and Services
Purchased Services 3,565 37,106 - - -
Supplies and Materials 118,063 96,662 138,000 152,000 152,000 Capital Expenditures - - - -
Other Expenditures - - - -
Subtotal 121,628 133,768 138,000 152,000 152,000
TOTAL 5,777,235 6,180,343 7,230,717 8,233,352 8,233,352 AUTHORIZED STRENGTH FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Commander 1.00 1.00 1.00 1.00 1.00
Police Sergeant 4.00 4.00 4.00 4.00 4.00
Police Officer 22.00 23.00 24.00 24.00 24.00
Police Officer (3PT) - - 1.35 1.35 1.35
TOTAL 27.00 28.00 30.35 30.35 30.35

POLICE DEPARTMENT
FY 2023-2024 Budget
Operations Division
DB- 111

11.1.b
Packet Pg. 263 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Operations Division Summary
Under the direction of the Chief of Police, the Operations Division is led by (1) Commander. The Operations Division performs police patrols, calls for service response, traffic enforcement, and special enforcement activities. The Operations Division has an authorized direct staffing level of 30.35 positions.

SIGNIFICANT CHANGES
FY 2022-2023 to FY 2023-2024 Budget:

The increase of $1,002,635 (13.9%) from the Adopted FY 2022-23 Budget to the Baseline FY 2023-24 Budget is primarily due to personnel costs increase.

There is no change from the FY 2023-24 Base Budget to the FY 2023-24 Proposed Budget.

Fiscal Year (FY) Budget $ Change From
Previous FY
% Change From
Previous FY
2022-23 Adopted $7,230,717
2023-24 Baseline $8,233,352 $1,002,635 13.9%
2023-24 Proposed $8,233,352 $0 0.0%

SERVICE DESCRIPTION
The Operations Division provides effective police services throughout the City, handle service calls, engages in problem-solving with the community, and keeps the peace.

DB- 112

11.1.b
Packet Pg. 264 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Operations Division

ACCOMPLISHMENTS

OBJECTIVES RESULTS

1. Implement “Racial and Identity Profiling Act”
mandates

1. Mandated RIPA reporting is underway

2. Train and develop new Police Officers 2. 9 new officers have either completed or are in the process of being trained

3. Maintain existing and develop new community
engagement projects.

3. In addition to the annual community
engagement projects, this year the police
department hosted a “Trunk or Treat” event
at the police department on Halloween,
where we engaged with families and
provided a safe location for children to
collet candy
DB- 113

11.1.b
Packet Pg. 265 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

POLICE DEPARTMENT
FY 2023-2024 Budget
Operations Division

OBJECTIVES

1. Develop new mentoring opportunities with our youth in neighborhood schools and after school programs

2. Train and develop new Police Officers

3. Maintain existing and develop new community engagement projects DB-114

11.1.b
Packet Pg. 266 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

NON-DEPARTMENTAL
FY 2023-2024 Budget

CHARACTER OF EXPENDITURES
FY 2023-24
Operating $5,717,743
DB- 115

11.1.b
Packet Pg. 267 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) SOURCES FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
General Fund
Charges/Fees for Services - - - - -
Use of Resources 1,163,728 706,165 1,084,893 995,808 995,808 Special Revenue Funds 239,542 942,022 991,037 1,215,116 1,215,116 Capital Project Fund - - - - -
Enterprise Funds 2,816,463 3,267,791 3,009,998 3,506,819 3,506,819 4,915,978 4,219,733 5,085,928 5,717,743 5,717,743
EXPENDITURES BY DEPARTMENT * FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 Actual Actual Adopted Baseline Proposed
Information Technology Replacement** 131,363 270,989 301,213 303,500 303,500 Insurance and Settlements 386,865 551,587 897,168 854,684 854,684 Professional Services (excl. IT & Ins) 3,701,505 3,577,351 3,887,547 4,209,559 4,209,559 Others - 516,051 - 350,000 350,000
TOTAL 4,219,733 4,915,978 5,085,928 5,717,743 5,717,743 *Excludes Successor Agency activities.
**Excludes capital equipment purchases budgeted directly in department or division.

NON-DEPARTMENTAL
FY 2023-2024 Budget
Department Summary

11.1.b
Packet Pg. 268 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) MISC- 1
Miscellaneous
Introduction
This section contains the following items of interest:

MISC- 2:

MISC- 3:

MISC- 4:

FY 2023-24 Capital Improvement Funding
FY 2023-24 Measure P Budget
FY 2023-24 Cost Allocation Plan
Overhead Charges

11.1.b
Packet Pg. 269 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) PROJECT # DESCRIPTION FUND SOURCE TOTAL
ST-07 Street Resurfacing Program F201 State Gas Tax - SB1 Funds 550,000 $ Sub-total State Gas Tax $ 550,000
ST-07 Street Resurfacing Program F202 Measure A $ 450,000 ST-15 Signage and Striping Improvements F202 Measure A $ 50,000 ST-11 Sidewalk Repair F202 Measure A $ 50,000
Sub-total Measure A $ 550,000
ST-11 Sidewalk Repair F234 Measure W $ 220,000
Sub-total Measure W $ 220,000
TOTAL FY 2023-24 PROPOSED CIP FUNDING $ 1,320,000
Note:

Major CIP does not include technology asset replacement.

FY 2023-2024 Capital Improvement Funding
MISC‐ 2

11.1.b
Packet Pg. 270 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) FY 2022-23 Adopted
FY 2023-24
Proposed
Measure P Local TUT 2,269,000 $ 2,230,000 $
CD Director 209,220 207,960
Community Service Aides Programs 55,000 55,000
Clean Zone - Project WeHope 5,000 -
Capital Transfers:

Unallocated1 - 700,000
262,960 969,220
Used for Other General Purposes $ 1,967,040 1,299,780 $ 1 Pending Council approval
FY 2023-2024 Measure P Budget
MISC‐ 3

11.1.b
Packet Pg. 271 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) Allocating General State Gas Tax Measure A NPDES Rent Stabilization Housing in Lieu Housing Assistance Housing TOT LMIH Successor Fund Lighting District Drainage District CYSFF TOT Water Lease Garbage Service Trust and Agency F010 F201 F202 F203 F204 F207 F209 F218 F220 F221 F222 F231 F510 F520 F705 Bld (29,726) - - - - - - - - - 29,726 - - - -
Equip (1,761) - - - 1,761 - - - - - - - - - -
CC (34,067) 6,089 80 2,812 6,706 1,890 76 2,241 702 1,440 1,903 1,260 6,905 1,963 - CA (172,591) 15,114 270 9,476 104,254 2,188 254 2,982 2,363 6,360 5,233 4,247 15,379 4,470 - CM (143,131) 27,119 410 14,390 27,368 6,544 388 8,049 3,589 6,760 7,984 6,451 25,641 8,440 - Clerk (35,762) 6,176 44 2,197 7,910 1,666 42 2,234 390 1,951 2,537 702 7,222 2,691 - Admin Srvs (32,844) 2,770 - 1,347 3,271 - - - - 1,385 1,385 20,158 - 2,527 - HR (59,557) 13,008 - 6,323 15,357 - - - - 6,504 6,504 - - 11,861 - Fin (153,818) 34,235 605 23,464 27,968 1,643 572 3,120 5,300 11,112 9,772 9,525 13,993 12,510 - Maint (19,200) - - - - - - - - - 19,200 - - - -
Non-Dept (99,301) 16,630 359 12,602 40,655 223 361 1,030 3,144 4,816 3,882 5,652 5,380 4,567 - Admin Srvs (28,169) 6,152 - 2,990 7,264 - - - - 3,076 3,076 - - 5,610 - Non-Dept (21,261) 4,643 - 2,257 5,483 - - - - 2,322 2,322 - - 4,234 - CA (3,988) 872 - 423 1,029 - - - - 435 435 - - 794 -
Non-Dept (20,771) 4,536 - 2,206 5,355 - - - - 2,269 2,269 - - 4,137 - Admin-PW - - - - - - - - - - - - - - -
Admin-CDD (44,887) - - - 17,812 17,812 - 9,263 - - - - - - - Successor Charges (12,595) - - - - - - - - - - - - - 12,595 Total1 137,345 (913,435) 1,770 80,485 272,195 31,965 1,695 28,920 15,485 48,430 96,230 47,995 74,520 63,805 12,595

1. Totals rounded to the nearest 5.

FY 2023-24 Cost Allocation Plan Overhead Charges
MISC- 4

11.1.b
Packet Pg. 272
Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) GLOS- 1
Glossary
AB x1 26 - legislation adopted and signed by
Governor Jerry Brown in June 2011 and upheld by
the California Supreme Court in California
Redevelopment Association, et al. v. Ana
Matosantos,et al., which eliminated redevelopment
agencies. As a result, the Redevelopment Agency
of the City of East Palo Alto (RDA) was dissolved
effective February 1, 2012. AB x1 26 provides that
the City may become the Successor Agency to the
Redevelopment Agency (affirmed by the City
Council on January 10, 2012), and continue to
satisfy “enforceable obligations” of the former
RDA and administer the dissolution and wind down
of the former RDA
AB 1484 - legislation adopted and signed by
Governor Jerry Brown in June 2012 that amended
various provisions of AB x1 26.

ADOPTED BUDGET - The City budget for a
fiscal year, adopted by the City Council by
resolution following the close of budget hearings.

APPROPRIATION - Legal authorization granted
by City Council or other policy body to make
expenditures and incur obligations for a specific
purpose within a specific time frame.

ASSESSED VALUATION - A dollar value placed
on real estate or other property by the County as a
basis for levying property taxes.

AUDIT - A review of the City's accounts by an
independent auditing firm to substantiate fiscal
year-end balances and assure compliance with
generally accepted standards for financial
accounting and reporting.

AVAILABLE FUND BALANCE - The amount
of fund balance available to finance appropriation
requirements after deducting reserves.

BOND PROCEEDS - The money paid to the
issuer by the purchaser or underwriter of a new
issue of municipal securities. These moneys are
used to finance the project or purpose for which the
securities were issued and to pay certain costs of
issuance as may be provided in the bond contract.

BONDS - A certificate of debt issued by an entity,
guaranteeing payment of the original investment,
plus interest, by a specified future date.

BUDGET - A plan of financial operation,
embodying an estimate of expenditures/ expenses
for a given period (typically a fiscal year) and the
means of financing them (revenue estimates).

Upon approval by the City Council, the budget
appropriation resolution is the legal basis for
expenditures in the fiscal year.

BUDGET AUTHORITY - Under certain
circumstances, the City Council may adjust the
budgeted appropriations for reasons unforeseen at
the time of the adoption of the original budget.

Such amendments are made by Council resolution.

The City Manager may make transfers of
appropriations within a fund.

BUDGETARY CONTROL – The control or
management of a government or enterprise in
accordance with an approved budget to keep
expenditures within the limitations of available
appropriations and available revenues.

BUSINESS LICENSE TAX - This is a general tax
on businesses for the privilege of conducting
business within the city. Rates are set at each city’s
discretion but may not be discriminatory or
confiscatory.

CAPITAL IMPROVEMENT BUDGET -
Annual appropriations for capital improvement
projects such as street improvements, building
construction and various kinds of major facility
maintenance. Capital projects are outlined in a
five-year expenditure plan which details funding
sources and expenditure amounts. They often are
multi-year projects which require funding beyond
the one-year period of the annual budget.

CAPITAL OUTLAY - Expenditures which result
in the acquisition of, or addition to, fixed assets.

CAPITAL PROJECT - Any project having assets
of significant value and a useful life of five years or more. Capital projects include the purchase of land,
design, engineering, and construction of buildings,
infrastructure such as streets, bridges, drainage,
street lighting, water/sewer systems, etc. Capital
projects may include the acquisition of heavy
equipment management control technique of

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Packet Pg. 273 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) GLOS- 2
formal budgetary and machinery or rolling stock
using capital funding sources.

CAPITAL PROJECTS FUND - A fund created to
account for financial resources to be used for the
acquisition or construction of major capital
facilities (other than those financed by proprietary
funds and trust funds).

CAPITALIZATION POLICY - The criteria used
by a government to determine which outlays should
be reported as fixed assets.

CASH WITH FISCAL AGENT - An asset
account reflecting deposits with fiscal agents, such
as commercial banks, for the payment of bond
principal and interest.

CAPITAL INVESTMENT PROGRAM (CIP) -
A section in the five-year capital plan listing
projects for which some level of funding is
available.

COMMUNITY ORIENTED POLICING
SERVICES (COPS) - A grant program supporting
community involvement offered by the U.S.

Department of Justice.

CONSUMER PRICE INDEX (CPI) - A
statistical description of price levels provided by
the U.S. Department of Labor. The change in this
index from year to year is used to measure the cost
of living and economic inflation.

CONTINGENCY - An amount of money
appropriated for unforeseen expenditures. It is
limited to not more than 15% of the appropriations
in any fund.

CURRENT SERVICE CHARGES - These are
charges imposed to support services provided to
individuals. These charges may not exceed the cost
of providing the service plus overhead. The
rationale behind service charges is that certain
services are primarily for the benefit of individuals
rather than the general public.

DEBT SERVICE - Payment of the principal and
interest on an obligation resulting from the issuance
of bonds, notes or leasing arrangements.

DEBT SERVICE FUND - A fund established to
account for the accumulation of resources for, and
the payment of, general long term debt principal
and interest.

DEFICIT - An excess of expenditures or expenses
over revenues (resources).

DEPARTMENT - An organizational unit
comprised of divisions or programs. It is the basic
unit of service responsibility encompassing a broad
mandate of related activities.

DEPRECIATION - (1) Expiration in the service
life of fixed assets, other than wasting assets,
attributable to wear and tear, deterioration, action of the physical elements, inadequacy and
obsolescence. (2) The portion of the cost of a fixed
asset, other than wasting assets, charged as an
expense during a particular period. In accounting
for depreciation, the cost of a fixed asset, less any
salvage value, is prorated over the estimated service
life of such an asset, and each period is charged with
a portion of such cost. Through this process, the
entire cost of the asset is ultimately charged off as
an expense.

DESIGNATED FUND BALANCE- A portion of
an unreserved fund balance that has been
“earmarked” by the City Manager or the City
Council for specified purposes.

DESIGNATION - An account containing money
set aside by the City Council for a specific future
use. Money in a designation is earmarked for
specific use, but may not be legally restricted to that use.

DEVELOPMENT IMPACT FEES - Fees placed
on the development of land or conditions required
for the approval of a development project such as
the donation (“dedication” or “exaction”) of certain
lands (or money) to specific public uses. The fees
are typically justified as an offset to the future
impact that development will have on existing
infrastructure.

DIVISION - A sub-section (or activity) within a
department which furthers the objectives of the City
by providing specific services or programs.

ENCUMBERANCE - An anticipated expenditure
committed for the payment of goods and services
not yet received or paid for. Used in budgeting,
encumbrances are not GAAP expenditures or
liabilities, but represent the estimated amount of

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Packet Pg. 274 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) GLOS- 3
expenditures ultimately to result if unperformed
contracts in process are completed.

ENTERPRISE FUND - A fund established to
account for operations financed and operated in a
manner similar to private business enterprises (e.g.,
water, gas and electric utilities, airports, parking
garages, or transit systems). In this case the
governing body intends that costs (i.e., expenses,
including depreciation) of providing goods or
services to the general public on a continuing basis
be financed or recovered primarily through user
charges. A fund established because the governing
body has decided that periodic determination of
revenues earned, expenses incurred and/or net
income is appropriate for capital maintenance,
public policy, management controls, accountability
or other purposes.

ERAF - Educational Revenue Augmentation Fund.

The state enacted legislation in 1992 whereby
partial responsibility of funding education was
shifted to local governments, directing specified
amounts of local agency property taxes to be
deposited into such funds to support schools.

EXCESS ERAF REFUND - Accounts for the
remaining funds in ERAF account after the County
of San Mateo has met the State’s revenue limits for
schools and community colleges. The revenue limit
is based on several factors such as average daily
attendance and cost of living increases. The excess
is then refunded proportionally to each agency’s
contribution based on state statue.

EXPENDITURES - Monies spent, including
current operating expenses, debt service and capital
outlays.

EXPENSE - The actual spending of funds by an
enterprise fund set aside by an appropriation.

FINES FORFEITURES AND PENALTIES -
Revenues received and/or bail monies forfeited
upon conviction of a misdemeanor or municipal
infraction.

FISCAL YEAR - In accounting terms, it is the net
of a twelve-month period used for budgeting and
accounting purposes. For the City of East Palo
Alto, the fiscal year is from July 1 to June 30.

FIXED ASSETS - Long-lived tangible assets
obtained or controlled as a result of past
transactions, events or circumstances. Fixed assets
include buildings, equipment, and improvements
other than buildings and land. In the private sector,
these assets are referred to most often as property,
plant and equipment.

FORFEITURE- See Fines, forfeitures, and
penalties.

FRANCHISES FEES- Fees paid to a municipality
from a franchisee for “rental” or as a “toll” for the
use of city streets and rights-of-way. The businesses
required to pay franchise fees in East Palo Alto
include utilities such as water, gas, electricity, cable television and solid waste collection and disposal.

Telephone utilities are specifically exempted from
franchise fees by State law.

FULL-TIME EQUIVALENT (FTE) - The
amount of time a regular full or part-time position
has been budgeted for in terms of the amount of
time an employee works in a year. Except as noted,
part-time services provided by casual/seasonal
employees, such as those for summer recreation
programs, are not included.

FUND - An independent fiscal and accounting
entity with a self-balancing set of accounts.

Examples are the General Fund, Special Revenue
Funds, Capital Projects, Enterprise, and Internal
Service Funds.

FUND BALANCE - The amount of financial
resources available for use. Generally, this
represents a summary of all the annual operating
surpluses and deficits since the fund's inception.

FY - Fiscal year.

GASOLINE TAX (HIGHWAY USERS TAX) -
The Gasoline Tax is a 26-cent per gallon tax on fuel
used to propel a motor vehicle or aircraft. The use
of these revenues is restricted to “research,
planning, construction, improvement, maintenance, and operation of public streets and highways or public mass transit guideways”. The basic means
of distribution to cities is population. The allocation formula is very complicated.

GENERAL FUND - The primary fund used to
account for all revenues and expenditures of the
City not legally restricted as to use. This fund is
used to offset the cost of the City's general

11.1.b
Packet Pg. 275 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) GLOS- 4
operations. Examples of departments financed by
the General Fund include the Police and
Administrative Support Services Departments,
such as the City Manager’s Office.

GOVERNMENT ACCOUNTING
STANDARDS BOARD (GASB) - A standardsetting body, associated with the Financial Accounting Foundation, which prescribes standard
accounting practices for governmental units.

GRANT - Contributions, gifts of cash or other
assets from another governmental entity to be used
or expended for a specific purpose, activity or
facility.

HOMEOWNER’S PROPERTY TAX RELIEF -
Revenue from the state to offset city loss of
property tax for state-imposed $7,000 per dwelling
homeowner exemption.

INFRASTRUCTURE - Facilities on which the
continuance and growth of a community depend,
such as streets and roads, sewers, public buildings,
parks, etc.

INTRAFUND TRANSFERS - A transfer of
moneys between departments in the same fund.

INVESTMENT EARNINGS - Revenue earned
from the investment of idle public funds.

JOING POWERS AUTHORITY - The Joint
Exercise of Powers Act authorizes local public
agencies to exercise common powers and to form
joint powers authorities (JPAs) for the purpose of
jointly receiving or providing specific services.

LEGAL LEVEL OF BUDGETARY
CONTROL - The level at which spending in
excess of budgeted amounts would be a violation of
law.

LEVEL OF BUDGETARY CONTROL - One of
the three possible levels of budgetary control and
authority to which organizations, programs,
activities and functions may be subject. These
levels of budgetary control are: (a) appropriated
budget, (b) legally authorized non-appropriated
budget review and approval process, which is
outside the appropriated budget process or (c) nonbudgeted financial activities, which are not subject to the appropriated budget and the appropriation
process or to any legally authorized nonappropriated budget review and approval process, but still are relevant for sound financial
management and oversight.

LEVY - (Verb) to impose taxes, special
assessments or service charges for the support of
governmental activities; (noun) the total amounts of
taxes, and/or special assessments and/or service
charges imposed by a governmental agency.

LICENESES AND PERMITS - Charge designed
to reimburse City for costs of regulating activities
being licensed, such as licensing of animals and
bicycles, etc.

LIEN - A claim on assets, especially property, for
the payment of taxes or utility service charges.

LIQUIDITY - Refers to the ability to rapidly
convert an investment into cash.

LOCAL AGENCY INVESTMENT FUND
(LAIF) - Was established by the state to enable
treasurers to place idle funds in a pool for
investment. Each agency is currently limited to
LAIF to an investment of $20 million plus any bond
proceeds.

MISSION STATEMENT- A succinct description
of the scope and purpose of a City department.

MEASURE C PARCEL TAX – A measure pass
by the voters on the November 2006 ballot that calls
for a 10 year special tax on all City parcels.

Revenue generated from such tax will be used for
public safety and crime prevention programs.

MOTOR VEHICLE IN-LIEU FEES - State
residents pay a fee to the State each year that is
computed as a percent of the depreciated value of
their motor vehicles. Each city and county in
California receives a portion, based on population,
of the total motor vehicle license fees collected by
the State. In 2004, the State reduced local
government allocation from 2.0% to 0.67%. The
difference of 1.33% was a swap for local property
tax, now known as Property Tax in Lieu of VLF.

OBJECTIVES - The expected results or
achievements of a budget activity which can be
measured and achieved within a given time frame.

Achievement of the objective advances the
organization towards a corresponding goal.

OPERATING BUDGET - Annual appropriation
of funds for on-going program costs, including

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Packet Pg. 276 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) GLOS- 5
salaries and benefits, services and supplies, debt
service and capital outlay.

ORDINANCE - A formal legislative enactment by
the City Council. It has the full force and effect of
law within City boundaries unless preempted by a
higher form of law. An ordinance has a higher legal
OTHER EXPENDITURES- This category
reflects transfer outs of the General Fund and excise
tax settlement payments. Transfers are used to
move funds to other operating funds in order to
finance the operations of another fund or to
reimburse the other fund for certain services
provided to the General Fund.

OTHER FINANCING SOURCES -
Governmental fund general long-term debt
proceeds, amounts equal to the present value of
minimum lease payments arising from capital
leases, proceeds from the sale of general fixed
assets, and operating transfers in.

OTHER FINANCING USES - Governmental
fund operating transfers out and the amount of
refunding bond proceeds deposited with the escrow
agent. Such amounts are classified separately from
expenditures on the governmental operating
statement.

OTHER REVENUES - This category includes
reimbursements from other government agencies,
interest earned on investments and contributions.

This category also includes some loan repayments
made to the General Fund, i.e., from the
Redevelopment Agency for budget purposes only.

OVERHEAD ALLOCATION - A methodology
for identifying and allocating overhead, (indirect)
costs incurred by central services departments to
the direct cost programs.

OVERSIGHT BOARD – this board provides
some oversight to the Successor Agency (see
definition) and has the fiduciary responsibility to
holders of enforceable obligations and the taxing
entities that benefit from the distribution of the
revenues, especially property tax revenue.

PERFORMANCE MEASURE- An annual
indicator of achievement or measures of prediction
for a program of work unit as defined in the
organization of the budget. Measures may be
expressed as a number count, fraction, or a percent
of achievement related to the size of the problem or
service being provided.

PERMITS, FEES AND CHARGES FOR
SERVICES- This category includes the City’s
charges and fees for licenses and permits issued by
the City; as well as, the community development
services of staff, provided to customers. The
license and permit revenues are designed to
reimburse the City for costs of regulating the
activities being licensed. Fees and charges for
services are imposed to support services provided
to individuals and businesses.

PERS - Public Employees’ Retirement System.

P.O.S.T - Peace Officer Standards and Training - a
State reimbursement program for Police Officer
Training.

PROPERTY TAX - Homes, businesses, and other
taxable real and personal property are subject to a
property tax rate of 1% of assessed value. Since
Proposition 13 was enacted in 1978, the assessed
valuation of real property in the “base year” of
1975-1976 may increase each year by the change in
the Consumer Price Index (CPI), not to exceed 2%
as long as it is held by the same owner. When there
is a transfer of property ownership, or when
property is newly constructed, it is reappraised at its current full market value. The property tax is
imposed on real property (land and permanently
attached improvements such as buildings) and
tangible personal property (movable property)
located within the state. By definition, this ad
valorem tax is based on the property value, as
defined in law, rather than on a fixed amount or
benefit.

ADOPTED BUDGET - The financial and
operating document submitted by the City Manager
to the City Council for consideration.

PROPOSITION 13 - Article XIIIA of the
California Constitution, commonly known as
Proposition 13, which limits the maximum annual
increase of any ad valorem tax on real property to
1% of the full cash value of such property.

PURCHASED SERVICES - This category covers
a wide-range of services such as consulting
services, outside professional, legal, and auditing

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Packet Pg. 277 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) GLOS- 6
services, county services, i.e., supplemental police
patrol, and animal control services; City facilities
maintenance services, etc.

RDA - Redevelopment Agency.

RECEIVABLES-REDEVELOPMENT
AGENCY- This receivable sets out amounts due
the City from the Redevelopment Agency making
those funds unavailable for appropriations until
received.

REGULAR POSTISION - Any permanent
position in the classified service that is required to
be filled through certification, or by provisional
appointment.

REIMBURSEMENT FOR STATE
MANDATED COSTS - Article XIIIB, Section 6
of the California Constitution which requires the
State to reimburse local agencies for the cost of
state-imposed programs. Process is commonly
called “SB 90” after its original 1972 legislation.

RESERVE - An account used to record a portion
of the fund balance as legally segregated for a
specific use, usually at a future time.

RESOLUTION - A special order of the City
Council which has a lower legal standing than an
ordinance.

REVENUES - Monies received or anticipated by a
local government from both tax and non-tax
sources during the fiscal year.

SALARIES AND BENEFITS - This major
category accounts for full-time and part-time
employees, overtime expenses and all employee
benefits, such as medical, dental, retirement, life
insurance, long term disability, and workers
compensation. Where applicable, uniform
allowance is also included in this category.

SALES TAX - This tax is levied on goods and
services at the point-of-sale. Sales tax in San Mateo
County is 8.25% of which approximately 1% is
returned to East Palo Alto for those sales which take
place in East Palo Alto.

SB 90 - Reimbursement process for state mandated
costs, named after its original 1972 legislation.

SERVICE CHARGES - Charges imposed to
support services to individuals or to cover the cost
of providing such services. The fees charged are
limited to the cost of providing the service or
regulation required (plus overhead).

SERVICES - Expenditures/expenses for services.

SINGLE AUDIT - An audit performed in
accordance with the Single Audit Act of 1984 and
the Office of Management & Budget (OMB)
Circular A-128, Audits of State and Local
Governments. The Single Audit Act allows or
requires governments (depending on the amount of
federal assistance received) to have one audit
performed to meet the needs of the federal agencies.

SPECIAL REVENEUE FUND - A fund used to
account for the proceeds of specific revenue
sources (other than expendable trusts or major
capital projects) that are legally restricted to
expenditure for specific purposes. GAAP only
require the use of special revenue funds when
legally mandated.

SUCCESSOR AGENCY – designated as the
entity to the former redevelopment agency. The
agency is given the authority, rights, powers,
duties, and obligations previously provided to the
former redevelopment agency under the
Community Redevelopment Law, except for those
that were repealed, restricted or amended in
Assembly Bill 1X26. The purpose of the agency
are 1)make payments on the redevelopment
agency’s enforceable obligations; and 2)wind
down the activities of the redevelopment agency.

SUPPLEMENTAL PROPERTY TAX - In the
event a property changes ownership, the county
collects a supplemental property tax assessment in
the current tax year by determining a supplemental
value. In future tax periods, the property carries the
full cash value.

SUPPLIES AND MATERIALS - This category
of expenses relates to supplies needed and required
to operate as a cost of doing business. Some of the
major supplies consist of general office supplies,
safety supplies, utilities and fuel for City vehicles,
etc.

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Packet Pg. 278 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) GLOS- 7
TAX - Compulsory charge levied by a government
for the purpose of financing services performed for
the common benefit.

TAX ALLOCATED BONDS - Bonds issued by
redevelopment agencies to revitalize blighted and
economically depressed areas of the community
and to promote economic growth.

TAX BASE - The objects or transactions to which
a tax is applied (e.g., parcels of property, retail
sales, etc.). State law or local ordinances define the
tax base and the objects or transactions exempted
from taxation.

TAX INCREMENT FINANCING - A tax
incentive designed to attract business investment by
dedicating to the project area the new property tax
revenues generate by redevelopment. The increase
in revenues (increment) is used to finance
development-related costs in that district.

TAX RATE - The amount of tax applied to the tax
base. The rate may be flat, incremental or a
percentage of the tax base, or any other reasonable
method.

TEMPORARY POSITION - A non-regular,
temporary position created to meet a peak workload
or other unusual work situation; can include
seasonal or recurrent intermittent employment.

TRANSIENT OCCUPANCY TAX (TOT) - This
is a general tax imposed on occupants for the
privilege of occupying rooms in hotels, motels,
inns, or other lodging facilities for 30 days or less.

The current tax rate in East Palo Alto is 12%. Of
the total tax anticipated to be received by the City,
there is a 10% set-aside for children, youth, senior
and families services and another 10% for housing
services for the residents of East Palo Alto.

TRUST FUNDS - Funds used to account for assets
held by a government in a trustee capacity for
individuals, private organizations, other
governments and/or other funds.

UNDESIGNATED FUND BALANCE - The City
will maintain an Undesignated General Fund
Balance to help mitigate the effects of such
unanticipated situations as the following:
a) Economic downturns
b) Loss of revenues to or imposition of
additional costs by other
governmental agencies
c) Errors in financial forecasting
d) Natural disasters
UNRESERVED FUND BALANCE - That
portion of a fund balance available for spending or
appropriation in the future.

UTILITY USER’S TAX - This tax is imposed on
the consumer (residential or commercial) of utilities
– electric, gas, cable television, and telephone
services. The current tax rate is 5%. The tax is
collected by the companies providing the service as
part of their billing process and is issued to the City.

VLF - See Motor Vehicle In-Lieu Fee.

11.1.b
Packet Pg. 279 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption) This Page Intentionally Left Blank

11.1.b
Packet Pg. 280 Attachment: FY 23-24 Proposed Budget (2708 : FY2023-24 Budget Adoption)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
Bo-Kyoung Kim, Financial Services Manager
SUBJECT: Establishing the Fiscal Year 2023-24 Appropriation Limit Recommendation
Adopt a Resolution establishing the FY 2023-24 Appropriation Limit of $39,354,338 Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Ensure Our Financial and Organizational Health
Background
In November 1979, the voters of the State of California approved Proposition 4, commonly known as the Gann Initiative. The proposition created Article XIIIB of the State Constitution designed to limit the growth in appropriations of all entities of government to changes in cost of living and population. Further, in 1980, the State Legislature amended the Government Code to implement the Article XIIIB of the California Constitution. See Government Code Section 7900 et seq. Then, in 1990, the voters of the State of California passed Proposition 111 providing adjustment formulas more responsive to local growth issues, as well as, requirement for an annual review of the Gann Limit calculations which is performed by the City’s auditors each fiscal year (collectively, Gann Limit Law). Calif. Const., Art. XIIIB, Sec. 1.5. Proposition 111 changed the annual adjustment factors beginning with the FY 1990-91 Appropriation Limit.

After that point, on an annual basis, the local entity may choose between whichever is greater:
the change in per capita income or assessed valuation due to non-residential construction within the City. To determine the population factor, the entity can select the greater of population growth either within the City or the County. Staff determines the appropriation limit associated with each fiscal year budget. The City Council is required to adopt a limit on appropriations subject to a formula outlined in the State Constitution Article XIIIB.

Analysis

11.2 Packet Pg. 281
The attached calculation of the appropriation limit follows the formula established in the California Constitution. Not all revenues are restricted by the limit; only those that are referred to as “proceeds of taxes.” Thus, attention must be given to what revenues fall into that category.

Total revenues are classified either as “proceeds” or “non-proceeds” of taxes. In FY 2023-24, budgeted revenue sources total $55,997,022 (See Attachment 2: Schedule 1 and Schedule 2).

Total revenue sources are reduced by non-proceeds of taxes and other qualifying exclusions in the amount of $21,560,809; leaving net revenue sources subject to limitation of $34,436,213 (See Attachment 2: Schedule 1).

GANN Limit Law provides some choice in the factors applied to determine the limit each fiscal year. The basic determinant factors are (1) the change in the cost of living, and (2) the change in population. See Government Code Section 7901. To determine the change in the cost of living, the City may choose from either: a) the change in California per capita income as determined by the California Department of Finance, or b) the percentage change in local assessment tax roll from the prior year attributable to the addition of non-residential new construction as calculated by the San Mateo County Assessor’s Office. Id. To determine the change in population, the City may choose either: a) the percentage change within the City, the or b) the percentage change within San Mateo County as determined by the California Department of Finance. For each factor, staff recommends the choice resulting in the maximum increase allowable.

The FY 2023-24 appropriation limit is determined by taking the prior year adjustment ending limit of $37,844,018 and multiplying by the per capita income factor and the County population rate factor. The appropriation limit is adjusted by the factored decrease in population in the County of San Mateo (-0.43%), and by the factored increase in per capita personal income (4.44%). The FY 2023-24 calculated appropriation limit applying such factors is $39,354,338 (See Attachment 2: Schedule 3).

The City’s calculated net revenue “subject to limitation” is $34,436,213 (noted above) is subtracted from the appropriation limit of $39,354,338 leaving a remaining appropriations capacity of $4,918,125 or 12.50%. (See Attachment 2)
In conclusion, the City’s 2023-24 budget appropriations that are subject to limitation are under the calculated appropriation limit and thus in compliance with Article XIIIB of the State Constitution.

It’s important for the Council and the public to note that the City’s Appropriations Subject to Limit are $4,918,125 or 12.50%, below the FY 2023-24 Appropriation Limit allowed by Statute which means if the City ends a fiscal year having more Appropriations Subject to Limit than its Appropriation Limit allows, the City must return the excess either by reducing taxes or fees.

Alternatively, the voters of the City may, by majority approval, increase the Appropriations Limit of the City.

Fiscal Impact
There is no immediate fiscal impact by this action.

Public Notice

11.2 Packet Pg. 282
Notice of this agenda item by publishing a notice of the hearing dates in “San Mateo County Times” and, also, posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s.

Attachments

1. Resolution

2. Attachment 2: Appropriation Limit Calculation

11.2 Packet Pg. 283
RESOLUTION NO.______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO ESTABLISHING AN APPROPRIATION LIMIT OF $39,354,338
FOR FISCAL YEAR 2023-24
WHEREAS, the City is required to adopt a limit on appropriations subject to a formula outlined in Article XIIIB of the California Constitution; and WHEREAS, the California Constitution also requires a method of inflation be chosen; and
WHEREAS, the City of East Palo Alto elects to use the following factors relevant to the calculation of the Appropriation Limit for FY 2023-24:
 Per Capita Personal Income Change: +4.44% (Plus Four Point Forty-Four Percent)
 County of San Mateo Population Adjustment: -0.43% (Minus Point Forty-Three Percent)
WHEREAS, a resolution establishing the annual appropriation limit must be adopted at a regularly scheduled meeting or noticed special meeting of the City Council; and
WHEREAS, the City Council held public hearings and adopted the Fiscal Year 2023-24 budget on June 20, 2023, and appropriations therein were determined within the calculated appropriation limit; and
WHEREAS, a determination of the FY 2023-24 Appropriations Limit has been made available to the public fifteen days prior to the meeting held.

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

1. Finds that the foregoing recitals are true and correct and are incorporated by this reference into this action;

2. Sets the Appropriation Limit for Fiscal Year 2023-24 at $39,354,338 pursuant to the calculation prepared in accordance with local law, contained within Exhibit A, which is attached hereto and incorporated by this reference.

3. Finds and determines that the Appropriation Limit of $39,354,388 exceeds the Appropriations Subject to Limitation calculated in the amount of $34,436,213 by $4,918,125; therefore, the City of East Palo Alto complies with the provisions of Article XIII B of the State Constitution.

11.2.a
Packet Pg. 284 Attachment: Resolution (2710 : Establishing the Fiscal Year 2023-24 Appropriation Limit) PASSED AND ADOPTED this 20th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney

11.2.a
Packet Pg. 285 Attachment: Resolution (2710 : Establishing the Fiscal Year 2023-24 Appropriation Limit)

11.2.a
Packet Pg. 286 Attachment: Resolution (2710 : Establishing the Fiscal Year 2023-24 Appropriation Limit)

CITY OF EAST PALO ALTO
Appropriation Limitation Calculation
2023-24

EXHIBIT A
Executive Summary
I. Determination of Appropriation Limit:
2023-24 Appropriation Limit (Schedule 3) $ 39,354,338
II. Determination of Appropriations Subject to Limitation:
2023-24 Revenue Sources for Appropriations (Schedule 2) $ 55,997,022 Deductions of Exempt Revenues and Qualified Capital (Schedule 1) (21,560,809) 2023-24 Appropriations Subject to Limitation (Schedule 1) $ 34,436,213 III. Amount Under/(Over) Appropriation Limit (I-II) $ 4,918,125 IV. Remaining Capacity as a Percent of FY 2023-24 Limit 12.50% An annual calculation of the City's appropriation limitation is required by Article XIIIB of the California Constitution. City expenditures may increase only in relation to changes in per capita income or growth in non-residential assessment valuation, whichever is greater, and the population change for the City or County, whichever is greater.

The City's 2023-24 proposed budget appropriations that are subject to limitation are $4,918,125 under the limitation as shown below:

11.2.b
Packet Pg. 287 Attachment: Attachment 2: Appropriation Limit Calculation (2710 : Establishing the Fiscal Year 2023-24 Appropriation Limit)

CITY OF EAST PALO ALTO

CALCULATION OF APPROPRIATIONS SUBJECT TO LIMITATION
2023-24
SCHEDULE 1
Total Revenue Sources For Appropriations (Schedule 2) 55,997,022 $ Exclusions:

Non-Proceeds of Taxes (Schedule 2) (21,560,809)
Qualifying Capital Outlay -
Total Exclusions (21,560,809)
Net Revenue Sources Subject to Limitation 34,436,213 $

11.2.b
Packet Pg. 288 Attachment: Attachment 2: Appropriation Limit Calculation (2710 : Establishing the Fiscal Year 2023-24 Appropriation Limit)

CITY OF EAST PALO ALTO

SUMMARY OF REVENUES-BY CATEGORY
2023-24
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Taxes
Property Taxes 17,924,000 $ 3,562,862 $ 21,486,862 $
Sales and Use Tax 6,030,000 - 6,030,000
Utility Users Tax 1,726,043 - 1,726,043
Transient Occupancy Tax 2,750,000 - 2,750,000
Other Taxes 4,964,943 1,755,000 6,719,943
$ 5,317,862 33,394,986 $ 38,712,848 $
Franchise Fees
Franchise Fees - $ 1,158,000 $ 1,158,000 $
Licenses, Fees, and Permits
Building and Other Permits - $ 432,600 $ 432,600
Rent Stabilization Fees - 605,000 605,000
NPDES - 144,000 144,000
CCAG Measure M Vehicle Fee - 92,000 92,000
Development Impact Fees - 2,226,092 2,226,092
$ 3,499,692 - $ 3,499,692 $
Fines and Forfeitures
Vehicle Code and Parking Fines - $ 185,000 $ 185,000 $
Other Fees and Fines - 40,000 40,000
$ 225,000 - $ 225,000 $
Grants and Intergovernmental
California SLESF - $ 160,000 $ 160,000 $
California Department of Aging - - -
California SB2 - 488,251 488,251 $
CalHome - 1,000,000 1,000,000 $
ARPA Grant - - - $
Subventions and Reimbursements 41,340 625,000 666,340
Miscellaneous Grants - 650,000 650,000
$ 2,923,251 41,340 $ 2,964,591 $
Charges for Current Services
Solid Waste and Recycling Charges - $ 2,988,000 $ 2,988,000 $ Water Capital Replacement Fees - 1,212,500 1,212,500
Building Charges - 411,000 411,000
Engineering Charges - 307,500 307,500
Planning Charges - 220,000 220,000
Police Services - 25,000 25,000
Miscellaneous Charges 11,700 441,679 453,379
$ 5,605,679 11,700 $ 5,617,379 $
1 of 2 Pages

11.2.b
Packet Pg. 289 Attachment: Attachment 2: Appropriation Limit Calculation (2710 : Establishing the Fiscal Year 2023-24 Appropriation Limit)

CITY OF EAST PALO ALTO

SUMMARY OF REVENUES-BY CATEGORY
2023-24
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Use of Money and Property (ex. Interest)
Facility Use and Leases - 485,820 485,820
Penalties - 50,792 50,792
$ 536,612 - $ 536,612 $
Other Miscellaneous
Solid Waste Reimbursements - $ 276,000 $ 276,000 $
Loan Proceeds and Reimbursements - - -
Other - 1,400,000 1,400,000
$ 1,676,000 - $ 1,676,000 $
Operating Budget Subtotal 33,448,026 $ 20,942,096 $ 54,390,122 $ Percent of Total 61.50% 38.50% 100.00%
Interest Allocation 988,187 $ 618,713 $ 1,606,900 $
TOTAL 34,436,213 $ 21,560,809 $ 55,997,022 $
2 of 2 Pages

11.2.b
Packet Pg. 290 Attachment: Attachment 2: Appropriation Limit Calculation (2710 : Establishing the Fiscal Year 2023-24 Appropriation Limit)

CITY OF EAST PALO ALTO

APPROPRIATIONS LIMIT COMPUTATION

CUMULATIVE GROWTH RATE
2023-24
Schedule 3

ASSESSED

PER CAPITA VALUATION

FISCAL BEGINNING POPULATION INCOME CHANGE ENDING

YEAR LIMIT FACTOR FACTOR FACTOR LIMIT
2007-08 15,463,621 1.0139 1.0442 N/A 16,371,558
2008-09 16,371,558 1.0126 N/A 1.0920 18,103,000
2009-10 18,103,000 1.0121 N/A 1.1120 20,374,116
2010-11 20,374,116 1.0117 N/A 1.0080 20,777,393
2011-12 20,777,393 1.0080 N/A 0.9810 20,545,684
2012-13 20,545,684 1.0098 1.0377 N/A 21,529,195
2013-14 21,529,194 1.0109 1.0512 N/A 22,878,172
2014-15 22,878,172 1.0117 N/A 1.1160 25,830,765
2015-16 25,830,765 1.0100 1.0382 N/A 27,085,675
2016-17 27,085,675 1.0091 1.0537 N/A 28,799,891
2017-18 28,799,891 1.0056 1.0369 N/A 30,029,838
2018-19 30,029,838 1.0065 N/A 1.0379 31,369,805
2019-20 31,369,805 1.0028 1.0385 N/A 32,668,760
2020-21 32,668,760 0.9987 1.0373 N/A 33,843,251
2021-22 33,843,251 0.9925 1.0573 N/A 35,514,101
2022-23 35,514,101 0.9908 1.0755 N/A 37,844,018
2023-24 37,844,018 0.9957 1.0444 N/A 39,354,338
Sources:State Dept.of Finance, Budget Resolutions & Prior Year Appropriation Limits, San Mateo County Assessor's OfficeN/A = Not applicable; calculation formula uses the higher of per capita or assessed valuation factors multiplied by population factor.

Notes:Population factor: San Mateo County, ((-0.43+100)/100 = 0.9957)Per Capita Income Factor, ((4.44+100)/100 = 1.0444)Total Change Factor (0.9957 x 1.0444) = 1.0399091

11.2.b
Packet Pg. 291
Attachment: Attachment 2: Appropriation Limit Calculation (2710 : Establishing the Fiscal Year 2023-24

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Karen Camacho, Housing & Economic Development Manager Karen Camacho, Housing & Economic Development Manager
Elena Lee, Planning Manager
SUBJECT: Inclusionary Housing Alternative Compliance Option for 1201 Runnymede (APN 063-271-090)
Recommendation
Conduct a public hearing and adopt a Resolution:

1. Finding that the proposed Alternative Compliance Option for the residential development project located at 1201 Runnymede (APN 063-271-090) to provide on a vacant property one deed-restricted unit for a Median-Income Household, one deed-restricted unit for ModerateIncome Households and paying an Inclusionary Housing In-Lieu Fee for three units fulfills the project’s inclusionary housing obligation under Section 18.37.080 of the East Palo Alto Municipal Code in that it provides as many or more inclusionary units at the same or lower income levels or will otherwise provide greater public benefit than would provision of the inclusionary units on-site;

3. Authorizing the City Manager to execute all required documents, in a form approved by the City Attorney, associated with the Inclusionary Housing requirements of the Project.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Promote Housing, Economic and Workforce Development

11.3 Packet Pg. 292
Background
1201 Runnymede Residential Development Project
The project located at 1201 Runnymede, APN 063-271-090 (“Project”), is a proposed residential development on a currently vacant lot of 40,598 square feet. The Project applicant is Carrasco & Associates representing Village One LLC (“Applicant”). The Project area is zoned as Urban Residential (“UR”). The original proposal was to build 32 units and provide the standard inclusionary housing obligation, which is discussed more fully below. The applicant is now proposing changes to the previously entitled project and an alternative compliance option.

Prior Project and Proposed Changes
On August 20, 2020, the Housing Division received an Inclusionary Housing Plan for a 32-unit for-sale/ownership multi-family residential development at 1201 Runnymede. Per the City’s Inclusionary Housing Ordinance (IHO), the developer was to provide six Inclusionary Units onsite. Given that the developer proposed to comply with the on-site inclusionary requirement, the Inclusionary Housing Plan was approved by Housing Division staff. On November 16, 2020, the 32-unit project was entitled by the Planning Commission.

In February 2023, the Applicant returned to the Planning Division with a lower-density 20-unit proposal for this previously entitled site due to higher than anticipated construction costs. The previously approved 32-unit project in a flood plain zone had a concrete parking structure on the first floor with units above the parking podium. According to the Applicant, this configuration made the per square foot cost for each unit above the projected market price.

According to the Applicant, additional per square foot costs in the previously approved project came from the cost of shared common areas such as the concrete podium structure, the large landscaped common area, common corridors, and the east facing two-story window wall and elevator. The previously approved project had a mix of unit types in terms of number of bedrooms and bathrooms. Under the new 20-unit proposal consisting of all 3-bedroom units, all proposed townhomes have the same floor plan layout; variations have been introduced to create a stepped façade with varied window treatments, but the material specifications for each unit remain the same. The new design has no decks on the second or third floor, which were part of the 32-unit proposal, and all private and common areas are provided on the first floor.

Inclusionary Housing Requirement
All residential development projects are subject to the requirements of Chapter 18.37 of the East Palo Alto Municipal Code (“EPAMC”) Inclusionary Housing Ordinance (“IHO”), adopted by City Council on November 19, 2019.

The IHO requires an Inclusionary Housing Plan to be approved by the Housing Division prior to scheduling the project for Planning Commission action. The content of the Inclusionary Housing Plan is incorporated into the Housing Division conditions of approval.

In the Inclusionary Housing Plan, applicants must select from a list of options (“Inclusionary Housing Compliance Options”) that demonstrate how a project will meet the inclusionary requirement. Upon staff’s request, the Applicant agreed to select “Other” and proposes an Alternative Compliance Option, as shown in Attachment 2. Under the IHO, all alternative

11.3 Packet Pg. 293
compliance options require City Council approval. This alternative is discussed in detail in the analysis section.

An Alternative Compliance Option requires that City Council approve the Applicant’s Inclusionary Housing Plan prior to the development proposal. The purpose of this staff report is for Council to reconsider this new Alternative Compliance Option due to the changes in the development proposal. If the Inclusionary Housing Plan is approved, the project’s entitlements, which include a Design Review and Tentative Map, would be scheduled for approval by the Planning Commission once the project is ready for a decision.

See the Applicant’s Inclusionary Housing Plan and tentative design plan in Attachment 2.

The timeline for the project is:

Table 1. Project Timeline
February 6, 2023 Applicant Submitted Project Packet
March 15, 2023 Menlo Fire Reviewed Project
May 19, 2023 Applicant Submitted Inclusionary Housing Plan Pending Planning Commission Hearing
Pending Final Map
Analysis
Standard Inclusionary Housing Requirements
Pursuant to the City of East Palo Alto Municipal Code Chapter 18.37 - Inclusionary Housing, a developer of an ownership residential development with five or more units must provide twenty percent (20%) of the dwelling units in the residential development as Inclusionary Units upon the same site as the residential development, with 50 percent of the Inclusionary Units available at an affordable sales price to households at 70% of the Area Median Income (“Median-Income Households”) and 50 percent of the Inclusionary Units available at an affordable sales price to households at 110% of the Area Median Income (“Moderate-Income Households”). Fractions of an Inclusionary Unit shall be provided by the payment of an In-Lieu fee as established in Section 18.37.050.B.

The In-Lieu Fee for ownership/for-sale residential units for Fiscal Year 2022-23 is $190,000 per unit, but the fee is scheduled to be updated for the Fiscal Year 2023-2024. The fee is applicable upon issuance of a building permit. Therefore, this project would be liable to pay the In-Lieu Fee before it is issued a building permit.
1201 Runnymede Inclusionary Housing Requirement
The proposed Project consists of 20 ownership/for-sale 3-bedroom units which requires the following: 1) four Inclusionary Units on-site, with two units at an affordable sales price to a Median-Income Household and two units at an affordable sales price to a Moderate-Income Household.

Inclusionary Housing Alternative Compliance Options

11.3 Packet Pg. 294
Section 18.37.080 allows a developer to pursue an Alternative Compliance Option with approval by the City Council. The IHO identifies two Alternative Compliance Options:

1. Build Inclusionary Units off-site equal to 25% of the units in the project at the lowest affordability level; or

2. Other Alternative Compliance Options as proposed by the applicant.

The applicant has chosen Option 2 and is proposing an Other Alternative Compliance Option for consideration by City Council that is further discussed below.

Inclusionary Housing Standards
Section 18.37.060 of the EPAMC describes the standards for Inclusionary Units. These standards are relative to the market-rate units in a project and include:
· Comparability in exterior appearance and overall quality of construction (to the marketrate unit) · Comparability in average bedroom mix and unit size
· Dispersion of Inclusionary Units throughout the project, rather than a single location · Same amenities (access to common open space, parking, storage, etc.) The purpose of these standards is to ensure that the Inclusionary Units are indistinguishable from the market-rate units and well-integrated into the project.

Proposed Alternative Compliance Option
If an applicant selects Option 1, providing units off-site, the requirement is to provide the equivalent of 25% of the total number of units. Any proposed “Other” Alternative Compliance Option must demonstrate equivalent or greater public benefit than Option 1, and this is the basis upon which the proposal is evaluated.

Because the revised project consists of 20 units, the Alternative Compliance Option must provide five (5) ownership/for-sale inclusionary housing units.

On April 17, 2023, the applicant provided that they would like to pay the In-Lieu Fee in full, which would amount to $950,000 for the five (5) inclusionary units under the Alternative Compliance Option requirement. On May 15, 2023, the applicant met with Housing Division staff to discuss Alternative Compliance Options given that Council would prefer to see inclusionary units be built.

The Applicant proposes to provide two inclusionary housing units on-site, one to be sold at an affordable price for a Median-Income Household and one to be sold at an affordable price for Moderate-Income Households. The applicant proposes to pay an InLieu fee for the remaining three units, equal to $570,000 if it were paid in Fiscal Year 2022-2023.

To put concrete numbers on the affordability level proposed by the applicant, Table 2 below demonstrates the income limits for Median and Moderate-Income Households based on the City’s 2022 state income limits.

Table 2. Household Income Limits (2022)

11.3 Packet Pg. 295
Household Size 1 2 3 4
Median Income $91,350 $104,400 $117,450 $130,500
Moderate Income $139,450 $159,350 $179,300 $199,200
Based on the City’s 2022 household income limits and January 2022 market data, the FY 2022-2023 affordable sales price for the three-bedroom inclusionary units would be approximately $788,500 for Median-Income Households and just over $1.1 million for Moderate-Income Households. The market sales price would approximate $1.4 million. The future sales price will be based on most current available data (e.g. most current interest rates, homeowner association dues, utilities, and property insurance).

Evaluation of the 1201 Runnymede Alternative Compliance Option Section 18.37.080 of the East Palo Alto Municipal Code describes that an “Other” Alternative Compliance Option can be approved by the City Council based on findings that the alternative will provide as many or more Inclusionary Units at the same or lower income levels or will otherwise provide greater public benefit than would provision of the Inclusionary Units on-site.

Also, Inclusionary Units shall meet the City’s Inclusionary Housing Standards, including that they be comparable in appearance and quality of construction to the market-rate units in the same development. Interior finishes, features, and amenities may differ from those provided in the market-rate units; but they shall be durable, of good quality, compatible with the marketrate units, and consistent with the California Building Codes Standards.

For the purposes of comparison, the market-rate units and Inclusionary Units are shown sideby-side in the chart below.

Table 3. Inclusionary and Market-Rate Unit Overview
Inclusionary Units Market-Rate Units
Units Two 3-bedroom units
(Units 4 and 13)
Eighteen 3-bedroom units (Units 1, 2, 3,
5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17,
18, 19 and 20)
Size 1,526 sq ft* (Unit 4); 1,439
sq ft * (Unit 13)
1,470 sq ft (Units 1, 10, 11 and 20);
1,439 sq ft (Units 2, 3, 8, 9, 12, 18 and
19); 1,526 sq ft (Units 7, 14 and 17);
1,464 sq ft (Units 5, 6, 15 and 16)
AMI
Levels**
1 x Median Income; 1 x
Moderate Income
All market-rate
* Rounded to nearest whole number.
**The IHO defines “median income” as 70% of the Area Median Income (“AMI”) and “moderate income” as 110% AMI.

Code Required Number of Units. The number of Inclusionary Units required for this Project are four on-site Inclusionary Units. The proposed Alternative Compliance Option of five Inclusionary Units meets the requirement by providing two Inclusionary Units on-site, and an In-Lieu Fee payment equal to three ownership/for-sale Inclusionary Units.

Bedroom Count and Size. The Inclusionary Units proposed would be three-bedroom 1,526 and 1,439 sq ft units, comparable to the eighteen other three-bedroom market rate units.

11.3 Packet Pg. 296
Comparability. The Inclusionary Units would contain identical or comparable exterior and interior finishes and amenities, with equal access to common areas and comparable private open space.

Affordability- AMI. As noted in Tables 2 and 3 above, one Inclusionary Unit would be restricted for sale to households at or below median income, and one Inclusionary Unit would be restricted for sale to households at or below moderate income.

Staff has concluded that building one Inclusionary Unit for a “Median-Income Household” and one for a “Moderate-Income Household” on-site, and paying an In-Lieu fee equal to three ownership/for-sale Inclusionary Units, as an Alternative Compliance Option, is an equal or greater public benefit than a fee payment for five inclusionary required units.

The following table shows that the City’s recommended option of building four onsite inclusionary housing units is not feasible for the Applicant, as it costs $4.96 million to complete the project, according to the Applicant’s estimates. The second option to pay the In-Lieu Fee for five units only adds funds to the City’s account but fails to add immediate value to the public. Staff recommends the Alternative Compliance Option that would provide a $2.48 million benefit for the two units to be constructed on-site, and a $570,000 In-Lieu Fee payment.

Table 4: Summary Comparison of Compliance Options
Standard Inclusionary Requirement:
(20% On-Site) (25% Requirement)
No. of
Units
Require
d
Construction Cost Per Unit Or In-Lieu Fee
1 $ 1,240,000 $
190,000
2 $ 1,240,000 $
190,000
3 $ 1,240,000 $
190,000
4 $ 1,240,000 $
190,000
5 N/A $
190,000
Total $ 4,960,000 $
950,000
Proposed Alternate Compliance:
(20% On-Site) (25% Requirement)
No. of
Units
Require
d
Construction Cost Per
Unit
In-Lieu Fee

11.3 Packet Pg. 297
1 $
1,240,000
N/A
2 $
1,240,000
N/A
3 N/A $
190,000
4 N/A $
190,000
5 N/A $
190,000
Total $
2,480,000
$
570,000
= $3,050,000
public
benefit
Based on 2021 United States Census Data, the average area median household income for the City of East Palo Alto is $96,349; having one Median-Income unit, one Moderate-Income unit, and an In-Lieu Fee payment of $570,000 for the remaining three units is of equal or greater public value than the Alternative Compliance Option of an In-Lieu Fee payment of $950,000 for five required off-site inclusionary units. Also, the construction cost of each unit is estimated by the Applicant to be $1.24 million, which is higher than the For-Sale/Ownership InLieu Fee for FY 2022-23 of $190,000 per unit. Therefore, building one Median-Income unit, one Moderate-Income unit, and an In-Lieu Fee payment for three units is of greater public value.

Staff finds this Alternative Compliance Option preferable in terms of both subsidy amount and timing, as the additional Inclusionary Unit will become available when construction of the Project is completed, rather than funds accumulating in the Affordable Housing Fund to support affordable units at a later time. In addition, this additional Inclusionary Unit would increase the City’s affordable housing stock of moderate-income units and will help the City advance on its 6th Regional Housing Needs Allocation cycle (“RHNA 6”) requirements, as it will be deed-restricted in perpetuity for Moderate-Income Households. The City’s 2023-2031 Housing Element has identified a strong need to meet moderate-income unit requirements in East Palo Alto. City efforts to build moderate-income units will be key to meet RHNA 6 goals.

Staff Recommendation
Based on the above considerations, staff believes the Applicant's proposal to provide one deed-restricted unit for a Median-Income Household and one for Moderate-Income Households, and to pay an In-Lieu Fee equal to three Inclusionary Units, fulfills the requirements of Section 18.37.080 and recommends the City Council approve this Alternative Compliance Option.

Construction of Units in Alternative Compliance Option
If the City Council approves the provision of the two Inclusionary Units and the In-Lieu fee payment for three ownership/for-sale Inclusionary Units as an Alternative Compliance Option for the Project, the standard requirements of the IHO will still apply. Prior to the issuance of a Building Permit, the City would execute an Inclusionary Housing Agreement that holds the

11.3 Packet Pg. 298
developer responsible for constructing the Inclusionary Units concurrently with the market-rate units in the project and for selecting a qualified buyer. This Inclusionary Housing Agreement is recorded against the entire Project.

Prior to issuance of a certificate of occupancy, a deed restriction would be recorded against the Inclusionary Unit to ensure that it remains affordable in perpetuity, in accordance with the requirements of the IHO for ownership units.

The City or its designated entity, such as EPACANDO, would be responsible for ongoing compliance monitoring. As with all units created and income-restricted under the Inclusionary Housing program, these units would remain part of the City’s Below Market-Rate (“BMR”) portfolio.

Next Steps
If the City Council determines that the proposed Alternative Compliance Option is sufficient to fulfill the Project’s inclusionary obligation, City staff will incorporate the Inclusionary Housing Plan into the permit issuance process.

Staff will also prepare the required documents and work with the developer to execute and record an Inclusionary Housing Agreement on the Project. As noted above, the Project, including the Inclusionary Units, will be subject to the planning entitlement process, including the approval of a Design Review and Tentative Map. A Final Map would be required afterwards to complete the subdivision process.

The Inclusionary Housing Agreement will ensure the Project complies with Section 18.37.070 of the EPAMC, which requires concurrent construction and issuance of final inspection or certificates of occupancy for the Inclusionary Units and market-rate units.

In accordance with Chapter 3 of the IHO Guidelines, the Affordable Sales Price will be calculated within 90 days before the date of the first close of escrow for an Inclusionary Unit and the values of the Affordable Sales Price and Fair Market Value, as defined in the IHO, will be updated every 90 days thereafter.

Fiscal Impact
There is no immediate fiscal impact associated with this staff report.

As noted previously, if the City Council approves the Alternative Compliance Option, the Applicant would not provide four Inclusionary Units, but instead would provide one on-site Inclusionary Unit for a Median-Income Household and one on-site Inclusionary Units for a Moderate-Income Household, and an In-Lieu Fee payment equal to three ownership/for-sale units.

All BMR units are managed by the City’s current BMR Administrator, EPACANDO. Addition of units to the portfolio will not generate additional administrative costs, as these are funded through a combination of Housing TOT (Transient Occupancy Tax, F207) and Housing Successor (F220) funds under the Agreement with EPACANDO, which is effective through May 2024.

11.3 Packet Pg. 299
Public Notice
The public was provided notice by publishing a notice in the June 9, 2023, San Mateo Daily Journal and by posting the agenda and report on the City’s website and at the City Hall located at 2415 University Avenue, East Palo Alto.

Environmental
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment. Additionally, CEQA clearance for the underlying project will be addressed by the Planning Commission when the project applicant seeks approval to amend the original project.

Attachments

1. Resolution

2. 1201 Runnymede Inclusionary Housing Plan

11.3 Packet Pg. 300
Resolution No. XX-2023 1 of 2
RESOLUTION NO. ____-2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

APPROVING AN INCLUSIONARY HOUSING ALTERNATIVE COMPLIANCE OPTION FOR A TWENTY-UNIT RESIDENTIAL DEVELOPMENT PROJECT AT 1201 RUNNYMEDE WHEREAS, on November 19, 2020, the City Council of the City of East Palo Alto (“City Council”) adopted Ordinance No. 425, adding Chapter 18.37 – Inclusionary Housing (“Ordinance”) to the City of East Palo Alto Municipal Code; and
WHEREAS, an application for a residential development consisting of twenty ownership/for-sale units on a vacant lot on 1201 Runnymede with APN 063-271-090 (“Project”), was submitted on February 6, 2023; and
WHEREAS, the Project is subject to the Ordinance, since it is a new residential development project; and
WHEREAS, the Project’s baseline inclusionary obligation is to provide four ownership/for-sale affordable units on-siter, with two units at an affordable sales price to a Median-Income Household and two units at an affordable sales price to a Moderate-Income Household; and WHEREAS, Section 18.37.080 of the East Palo Alto Municipal Code provides that an applicant of a residential development may choose from a list of an Alternative Compliance Options to meet the inclusionary obligation if the inclusionary requirement for the project is increased by 5% and this Alternative Compliance Option must be approved by the City Council; and WHEREAS, alternatively, Subsection (D) of section 18.37.080 of the East Palo Alto Municipal Code allows the Council to grant a residential development applicant “Other alternative compliance methods” but “only if the approval body determines, based on substantial evidence, that such alternative compliance will provide as many or more inclusionary units at the same or lower income levels or will otherwise provide greater public benefit than would provision of the inclusionary units onsite”; and WHEREAS, in lieu of the inclusionary obligation, as an Alternative Compliance Option for the project, the Developer proposes to provide one ownership/for-sale unit affordable on-site for a MedianIncome Household and one ownership/for-sale unit on-site for a Moderate-Income Household, and an In-Lieu Fee payment equal to three ownership/for-sale units in the amount of $570,000; and WHEREAS, the residential development applicant’s proposed alternative compliance option exceeds the baseline inclusionary housing obligation, includes onsite units, which is preferrable to a 100% in-lieu fee alternative compliance method, and as the onsite units will be deed-restricted in perpetuity for Moderate-Income Households it will assist the City to meet its affordable housing goals under Housing Element Law; and
WHEREAS, no Planning approvals or clearances may be issued for a residential project unless the inclusionary housing requirements are first met.

11.3.a
Packet Pg. 301 Attachment: Resolution (2706 : Inclusionary Housing Alternative Compliance Option for 1201 Runnymede (APN 063-271-090)) Resolution No. XX-2023 2 of 2

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

1. Finds the foregoing recitals are true and correct and are incorporated into this action by this reference;

2. Finds that the proposed Alternative Compliance Option for the Project to provide two affordable units on-site, one for a Median-Income Household and one for Moderate-Income Households, and an In-Lieu fee payment equal to three inclusionary units, satisfies the requirements of Section 18.37.080(D) of the East Palo Alto Municipal Code in that it provides as many or more inclusionary units at the same or lower income levels or will otherwise provide greater public benefit than would provision of the inclusionary units on-site;

3. Finds that the project does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment; and

4. Authorizes the City Manager to execute all necessary documents, in a form approved by the City Attorney, associated with the inclusionary housing requirements of the Project.

PASSED AND ADOPTED this 20th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

11.3.a
Packet Pg. 302 Attachment: Resolution (2706 : Inclusionary Housing Alternative Compliance Option for 1201 Runnymede (APN 063-271-090)) Resolution No. XX
-20233 of 2
James Colin, City Clerk John D. Lê, City Attorney

11.3.a
Packet Pg. 303 Attachment: Resolution (2706 : Inclusionary Housing Alternative Compliance Option for 1201 Runnymede (APN 063-271-090))

11.3.b
Packet Pg. 304 Attachment: 1201 Runnymede Inclusionary Housing Plan (2706 : Inclusionary Housing Alternative Compliance Option for 1201 Runnymede 2 for-sale units on-site (1 Median income & 1 Moderate income); In-lieu fee for remaining 3 units"

11.3.b
Packet Pg. 305 Attachment: 1201 Runnymede Inclusionary Housing Plan (2706 : Inclusionary Housing Alternative Compliance Option for 1201 Runnymede

11.3.b
Packet Pg. 306 Attachment: 1201 Runnymede Inclusionary Housing Plan (2706 : Inclusionary Housing Alternative Compliance Option for 1201 Runnymede NTS NEIGHBORHOOD CONTEXT & ZONING ANALYSIS A0.1 CARRASCO & ASSOCIATES ARCHITECTS . A PROFESSIONAL CORPORATION date sheet title scale All drawings and written material appearing herein constitute the original and unpublished work of the Architect and the same may not be duplicated, used or disclosed without the written consent of the Architect. 1885 El Camino Real, Palo Alto, CA 94306 PH: 650-322-2288 FAX: 650-322-2316 of C 2020 Carrasco & Associates sheet no. PLANNING PRE SUBMITTAL VILLAGE EPA TOWNHOMES EAST PALO ALTO, CA 94301 1201 RUNNYMEDE STREET TRUE NORTH12/15/2022 1. Inclusionary Housing 05/18/2023 ADDRESS: 1201 RUNNYMEDE, EAST PALO ALTO CA APN NO. : 063-271-090 LOT AREA: 0.932 ACRES (PER TITLE REPORT) LOT SIZE: 149.05' X 272.25' SCOPE OF WORK: 20 RESIDENTIAL UNITS OCCUPANCY: R-2, S1 TYPE OF CONSTRUCTION: TYPE I A, TYPE III A, SPRINKLERED ZONING: HIGH DENSITY URBAN RESIDENTIAL (UNDER 'RAVENSWOOD_4CORNERS SPECIFIC PLAN') FLOOD ZONE: AE 11.0 ALLOWABLE DENSITY: 40/ACRE MINIMUM PARCEL AREA: 12000 SQ.FT. MINIMUM PARCEL WIDTH: 50 FT. MINIMUM PARCEL DEPTH: 240 FT. MAX. FLOOR AREA RATIO: 1 MAX. COVERAGE: 70% MAXIMUM HEIGHT: 3 STORIES, 42 FEET RESIDENTIAL FLOOR TO FLOOR HT MAX: 14 FT. ZONING ANALYSIS REQUIRED/ALLOWED PROPOSED________________________ SETBACKS: FRONT SETBACK 5 FT. LANDSCAPED : 15'-0" FRONT SETBACK SIDES SETBACK 5 FT. : 10'-0 18" WEST SIDE SETBACK; 10'-01/4" EAST SIDE SETBACK REAR SETBACK 20 FT. : 20'-0" REAR SETBACK REQUIRED OPEN SPACE: COMMON OPEN SPACE: 100 SQ.FT. 20FT. MIN LENGTH/WIDTH. 4330.63 SQ.FT. ( SEE AREA ANALYSIS SHEET) PRIVATE OPEN SPACE REQUIRED: 100 SQ.FT. 105 SQ.FT. MINIMUM, SEE AREA ANALYSIS SHEET A0.3 FOR DETAILS BUILDING HEIGHT: 42 FEET MAX ABOVE AVERAGE GRADE 39.3' TO TOP OF ROOF ABOVE AVERAGE GRADE MAXIMUM ALLOWABLE COVERAGE: 0.70 OF 40578.8= 28405.2 SQ.FT. PROPOSED COVERAGE: 16613.61 SQ.FT. ( SEE AREA ANALYSIS SHEET FOR DETAILS) MAXIMUM ALLOWABLE FLOOR AREA: PROPOSED FLOOR AREA: 29575.47 SQ.FT. ( SEE AREA ANALYSIS SHEET FOR DETAILS) FAR 1= 40578.8 SQ.FT. BIKE PARKING: BIKES BIKES REQUIRED PROVIDED I CLASS 1 PER 3 UNITS 7 CLASS I BIKES 8 CLASS I BIKES (LOCKERS) II CLASS 1 PER 15 UNITS 2 CLASS II BIKES 2 CLASS II BIKES (BIKE RACK) TREES REQUIRED: 1 TREE PER 50 FOOT FRONTAGE REQUIRED 2 TREES FOR RUNNYMEDE FRONTAGE: PROPOSED 3 TREES PROPOSED ALONG WEST & EAST SIDE: 22 TREES PROPOSED ALONG NORTH SIDE: 3 PROPOSED UNIT SUMMARY TOTAL NUMBER OF "FOR-SALE" RESIDENTIAL UNITS PROPOSED ON SITE: 20 REQUIRED: REQUIRED NUMBER OF INCLUSIONARY HOUSING UNITS: 20 x 25% = 5 UNITS PROPOSED: TWO INCLUSIONARY HOUSING UNITS PROVIDED ON SITE FOR THREE INCLUSIONARY HOUSING UNITS IN-LIEU FEE TO BE PAID VIEW 2 SITE VIEW 1 RUNNYMEDE STREET VIEW VIEW 2 PROPOSED SITE & NEIGHBORHOOD R-LD R-MD-1 SITE ( UNDER RAVENSWOOD_ 4 CORNERS SPECIFIC PLAN) URBAN RESIDENTIAL ZONING R-MD-1 ZONING RAVENSWOOD SPECIFIC PLAN VACANT LOT RAVENSWOOD PRESERVE INDUSTRAIL TRANSITION URBAN RESIDENTIAL URBAN RESIDENTIAL SITE VIEW 1 RESIDENTIAL PARKING: PARKING/UNIT UNITS REQUIRED PARKING PARKING PROVIDED 3 BR UNITS: 2 PER 1 UNIT 20 40 40 GUEST PARKING 0.2 PER UNIT 20 4 5 UNIT TYPE UNIT NUMBER TOWNHOME A H Y D AFFORDABILITY BEDROOMS SQ.FT. # OF UNITS TOTAL BEDROOMS TOTAL SQ.FT. SALES PRICE ESTIMATE 1,10,11,20 MARKET RATE 3 1469.59 4 12 5878.36 $1,300,000 TOWNHOME B 2,3,8,9, 12,18,19 MARKET RATE 3 1438.58 7 21 10070.06 $1,300,000 TOWNHOME C 7,14,17 MARKET RATE 3 1525.66 3 9 4576.98 $1,300,000 TOWNHOME D 5,6,15,16 MARKET RATE 3 1463.68 4 12 5854.72 $1,300,000 TOWNHOME E 4 MEDIAN INCOME 3 1525.66 1 3 BASED ON INCLUSIONARY SALES PRICE TOWNHOME F 13 MODERATE INCOME 3 1438.58 1 3 BASED ON INCLUSIONARY SALES PRICE 1525.66 1438.58 INCLUSIONARY HOUSING TABLE 11.3.b Packet Pg. 307 Attachment: 1201 Runnymede Inclusionary Housing Plan (2706 : Inclusionary Housing Alternative Compliance Option for 1201 Runnymede (APN 063-271-090)) H Y D CHILDERN'S PLAY AREA W/ OUTDOOR SEATING TYP. CHILDERN'S PLAY AREA W/ OUTDOOR SEATING TYP. 10'-0" 20'-0"
10'-3 3/8"

SIDE SETBACK
49'-9 5/8" 29'-2" 49'-9 5/8" PRIVATE OPEN SPACE 5-TOWNHOMES 5-TOWNHOMES 5-TOWNHOMES FIRE ACCESS ROAD PRIVATE OPEN SPACE 5'-0" 5'-0" WALKWAY PUBLIC RIGHT- OF-WAY NEW 5' SIDE WALK
PLANTER STRIP PLANTER STRIP C.L OF ROAD 20'-0" CO

SIDE SETBACK
RUNNYMEDE STREET (E) CMU WALL FH 10'-0" FIRE ACCESS ROAD 120'-0" 5-TOWNHOMES PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE NEW 5' SIDE WALK 18'-0"
12'-0" 9'-0" 5'-0" 18'-0"
9'-0"
1 VAN ACCESSIBLE PARKING
2 3
4 GUEST PARKING 24'-0" GUEST PARKING
5 PRIVATE OPEN SPACE PRIVATE OPEN SPACE PRIVATE OPEN SPACE 20'-0" PROPERTY LINE 272.25' PROPERTY LINE 149.05' PROPERTY LINE 272.25'
70'-0" 5'-0"
PROPERTY LINE 149.05'
PROPERTY LINE 149.05'

FIRE ACCESS ROAD
22'-10"

TURNAROUND
29'-2"

FIRE ACCESS ROAD
22'-10"

TURNAROUND PLANTER STRIP
10'-0 1/8" 10'-3 1/4" 49'-9 5/8" 49'-9 5/8" 82'-7 1/4" 82'-7 1/4" 82'-7 1/4" 2'-0"
1'-2"
2'-0"
1'-2"
1'-2"
2'-0"
1'-2"
2'-0" 62'-0" 62'-0"
57'-2 1/4" 4'-5"
SIDE SETBACK 24'-0" 82'-7 1/4" UNIT-11 UNIT-12 UNIT-13 UNIT-14 UNIT-15 UNIT-16 UNIT-17 UNIT-18 UNIT-19 UNIT-20 UNIT-10 UNIT-9 UNIT-8 UNIT-7 UNIT-6 UNIT-5 UNIT-4 UNIT-3 UNIT-2 UNIT-1 9'-0" 9'-0"
13'-4" OUTDOOR PAVED AREA
R28'-0"
R28'-0" 29'-0" 4'-0" 29'-0"
26'-10" LANDSCAPED AREA LANDSCAPED AREA OPEN SPACE SITE PLAN CARRASCO & ASSOCIATES ARCHITECTS . A PROFESSIONAL CORPORATION date sheet title scale All drawings and written material appearing herein constitute the original and unpublished work of the Architect and the same may not be duplicated, used or disclosed without the written consent of the Architect. 1885 El Camino Real, Palo Alto, CA 94306 PH: 650-322-2288 FAX: 650-322-2316 of C 2020 Carrasco & Associates TRUE NORTH sheet no. PLANNING PRE SUBMITTAL VILLAGE EPA TOWNHOMES EAST PALO ALTO, CA 94301 1201 RUNNYMEDE STREET 12/15/2022 1. Inclusionary Housing 05/18/2023 TREE TREE TREE SHRUBS PROPERTY LINE SETBACK LINE (N) PROPERTY WOOD FENCE 6'-0" HIGH, UNO SHRUBS H Y DFH FIRE HYDRANT (E) EMU WALL CO SEWER CLEAN OUT 1" =10'-0" INCLUSIONARY HOUSING SITE PLAN A1.2 INCLUSIONARY HOUSING NOTES: UNIT-4 & UNIT-13 ARE INCLUSIONARY HOUSINGS. UNIT-4: LOCATION: EAST FACING FLOOR AREA: 1525.66 SQ.FT. DECK AREA: 143.96 SQ.FT. NO. OF BEDROOM: 03 NO. OF BATH: 03 UNIT-13: LOCATION: WEST FACING FLOOR AREA: 1438.58 SQ.FT. DECK AREA: 143.96 SQ.FT. NO. OF BEDROOM: 03 NO. OF BATH: 03 LEGEND COLORED SCORED CONCRETE PRIVATE OPEN SPACE CONC. PAVERS PERMEABLE PAVERS CONC. PAD RESIDENTIAL BLDG 2' CONCRETE EDGE CITY SIDEWALK LANDSCAPE INCLUSIONARY HOUSING UNIT PROPOSED UNIT SUMMARY TOTAL NUMBER OF "FOR-SALE" RESIDENTIAL UNITS PROPOSED ON SITE: 20 REQUIRED: REQUIRED NUMBER OF INCLUSIONARY HOUSING UNITS: 20 x 25% = 5 UNITS PROPOSED: TWO INCLUSIONARY HOUSING UNITS PROVIDED ON SITE FOR THREE INCLUSIONARY HOUSING UNITS IN-LIEU FEE TO BE PAID INCLUSIONARY HOUSING TABLE UNIT TYPE UNIT NUMBER TOWNHOME A AFFORDABILITY BEDROOMS SQ.FT. # OF UNITS TOTAL BEDROOMS TOTAL SQ.FT. SALES PRICE ESTIMATE 1,10,11,20 MARKET RATE 3 1469.59
4 12 5878.36 $1,300,000 TOWNHOME B 2,3,8,9, 12,18,19 MARKET RATE 3 1438.58
7 21 10070.06 $1,300,000 TOWNHOME C 7,14,17 MARKET RATE 3 1525.66
3 9 4576.98 $1,300,000 TOWNHOME D 5,6,15,16 MARKET RATE 3 1463.68
4 12 5854.72 $1,300,000 TOWNHOME E
4 MEDIAN INCOME
3 1525.66 1 3 BASED ON INCLUSIONARY SALES PRICE TOWNHOME F 13 MODERATE INCOME3 1438.58 1 3 BASED ON INCLUSIONARY SALES PRICE 1525.66 1438.58 11.3.b Packet Pg. 308
Attachment: 1201 Runnymede Inclusionary Housing Plan (2706 : Inclusionary Housing Alternative Compliance Option for 1201 Runnymede (APN 063-271-090))

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
Greg Henry, Senior Management Analyst
SUBJECT: Status of Business Discovery and Amnesty Program Related to Business Licenses
Recommendation
Direct staff on the next steps in the Business Discovery and Compliance program.

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

Ensure Our Financial and Organizational Health
Background
On June 2, 2022, the City Council awarded HdL Companies (HdL) a contract to administer the City’s business license program for businesses operating within East Palo Alto city limits, including compliance auditing, education, and outreach concerning the City’s business license tax regime.

Historically, the City has not had a consistent method of auditing the level of business license compliance. As part of the agreement, the City requested HdL do an initial review of the compliance level of businesses related to payment of the business license tax. This initial discovery analysis concluded that the City has a significant business license fee compliance issue.

On February 7, 2023, the City Council approved Resolution 13-2023 directing HdL’s Discovery and Compliance Team to assist the City with actively pursuing businesses out of compliance with the City’s Code. The Council directed that there be an initial ninety-day amnesty program.

The amnesty program was designed to provide time for and to facilitate businesses to timely compliance. The grant of amnesty waived all penalties and interest until 04/02/2023. From

12.1 Packet Pg. 309
04/03/2023 through 05/17/2023, half of all penalties and interest were waived. For businesses which remain non-compliant at the end of the amnesty period, all unpaid taxes, fees, penalties and interest will be owed.

The amnesty program only waived penalties that accrued on the fees and taxes. That is, a business which came into compliance during the amnesty period still owed the underlying fees and taxes.

As of May 23, 2023, through HdL’s and staff’s outreach efforts, the City has collected $484,103.96. An additional $117,243 has been invoiced but is unpaid.

Table 1 - Discovery and Compliance Activity Summary
Customer Service Concerns
Some business operators have reached out to the City expressing concerns about the customer service of HdL’s Discovery and Compliance Team. On balance, HdL has delivered high-quality service and addressed customer concerns promptly and effectively. HdL’s statistics, on average, customer wait times over the phone and over email meet the City’s standard.

Table 2 - Customer Service stats and Summary
Category Statistic
Admin Average Call Wait Time 0:02:20
Compliance Team Average Call Wait Time 0:02:45
Admin Average Email Wait Time 9:28:10
Compliance Team Average Email Wait Time 11:51:53
Total Admin Calls 577
Total Compliance Team Calls 1,176
Total Admin Emails 623
Total Compliance Team Emails 1,079
Contacts by
Phone
1,176
Contact by
E-mail
1,079
Payments
Received
548
Disc. & Comp.

Notices Sent
3,079
Invoices
Unpaid
73 12.1
Packet Pg. 310
Still, there have been instances where HdL has fallen short of meeting the City’s expectations.

In these cases, HdL has taken customer feedback seriously and conducted reviews to identify areas of improvement. When they determined that they were at fault or responsible for any customer dissatisfaction, HdL accepted responsibility for their actions.

Upon accepting responsibility, HdL took the necessary steps to rectify the situation and ensure customer satisfaction. This may involve offering apologies, providing solutions to the issues at hand, or, with the approval of staff, adjusting penalties. HdL has used these situations as valuable opportunities to improve their processes, train their staff, and enhance their overall customer service experience.

There are fewer than five businesses where staff remain in communication with HdL with specific concerns. Staff anticipate that these will be resolved over the next two weeks.

Staff seeks Council direction on how the City should proceed in efforts to collect unpaid invoices. Staff also would like to hear from the Council regarding issues that they may have heard from the community regarding this process and how it needs to be improved.

Analysis
Potential Next Steps
As noted above in Table 1, there remain 73 businesses who have contacted HdL but haven’t paid their taxes. Additionally, there are currently 406 potential businesses who have not responded to any of HdL’s letters or contacts. HdL believes these businesses are composed of:
· 378 Residential Rental Properties
· 28 General Businesses
All such businesses are believed to be currently active.

For the non-responsive businesses, HdL has sent each of these potential businesses a final amnesty notice. With penalties and interest, HdL estimates an average amount of $1,000 is owed by the 406 businesses. Given that some of the 406 potential businesses may not be businesses, the collectable cap of $406,000 could be significantly lower. Once businesses are compliant, there is an expectation that they will continue to pay the Business License Tax each year that they are active. Given the Measure L change to Business License Tax approved by voters last November, the Business License Tax for residential rental properties will increase.

Thus, the ongoing revenue represented by the 378 nonresponsive rental properties could represent as much as $340,000 in annual tax revenue, again with the caveat that it could be significantly lower as not all are rental properties.

The Business License Tax penalty amnesty period ended May 17, 2023. Staff recommends that the Council continue to authorize HdL’s outreach process and send letters on a monthly basis.

HdL has heard from some businesses that they do not currently have the funds to pay. It is possible that, with time, the remaining businesses will come into compliance. This process primarily relies on HdL staff and does not have an impact on City staff. For businesses who

12.1 Packet Pg. 311
have not come into compliance, penalties for this years tax continue to accumulate at 10% per month until the penalty equals the underlying tax due.

In addition to continued HdL outreach, staff seeks Council direction to determine the appropriate method to manage businesses who have been unresponsive. For these businesses, letters and increasing penalties may not be sufficient to bring them into compliance. Potential steps the City could take to increase compliance through enhance enforcement include:

Enhancement 1: Initiate collection efforts internally.

Under this option, the City Attorney would explore all enforcement options permitted by applicable law, including initiating collections actions (small claims or unlimited civil lawsuits).

Bringing civil actions could be resource intensive, however. For example, some lawsuits would be small claims actions if the amount in controversy is below $10,000. Small claims lawsuits cannot have an attorney present, although the City Attorney would train staff on how to file and prosecute them.

If the Council would like to pursue this option, the City Attorney would return with concrete enforcement options for the Council’s consideration.

Enhancement 2: Delegate collection efforts to a contractor.

Under this option, staff would issue an RFP for a collections agency to take over the collections efforts. Typically, if litigation is required, the collections percentage can be as low as 50%.

Enhancement 3: Criminal enforcement.

Violations of the City’s business license tax requirements is a misdemeanor, which can be punishable by fines, probation, community service or imprisonment. The seriousness of the charge could increase compliance, but could lead to community concerns over enforcement.

This approach is also resource intensive and would require use of outside counsel.

Summary
Either Enhancement 1 or 3 will require a significant commitment of City staff resources, particularly for the City Attorney. While HdL can provide guidance through the process, the actual enforcement would require use of City staff time.

HdL’s recommendation to staff is to wait to begin enhanced enforcement for another review period. Should the City Council choose to allow for an additional review period, staff recommend a three-month period before selecting any additional enforcement options.

At this time, staff would like direction from the Council as to which enhancement options the Council would like to consider and if there are any which staff should discard in future discussions.

Fiscal Impact

12.1 Packet Pg. 312
On February 7, 2023, HdL estimated that the City would be able to collect between $290,000 and $450,000 in additional revenue. The difference, whether the City included an amnesty period. Given Council’s direction for the amnesty period (though with a period of “half” amnesty), HdL revised their estimate closer to $290,000.

As noted above, as of May 23, 2023, HdL had recovered $484,103.96. Net of their charges, this is $297,289.28 in additional revenue to the City, already slightly above the revenue estimate with amnesty. Given that there is $117,243 in taxes invoiced, but as yet uncollected, there is significant additional tax revenue pending.

As noted on February 7, many of the non-compliant businesses were renters of dwellings with fewer than five units. Given Measure L, approved by the citizens of East Palo Alto last November, HdL anticipates from the current 546 discovered businesses the ongoing annual revenue of $405,000 from the newly discovered and registered businesses.

12.1 Packet Pg. 313

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: June 20, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Batool Zaro, Associate Engineer
Humza Javed, Public Works Director
SUBJECT: 2023 Southeast San Mateo Community-Based Transportation Plan Recommendation
Adopt a resolution supporting the 2023 Southeast San Mateo Community-Based Transportation Plan, subject to any potential changes.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
• Promote Health and Public Safety
• Implement the Comprehensive Transportation and Mobility Plan Background
The Metropolitan Transportation Commission (MTC) initiated the Community-Based Transportation Planning (CBTP) program in 2002. Funded by MTC and managed by Congestion Management Agencies such as the City/County Association of Governments of San Mateo County (C/CAG), the goal of CBTPs is to bring residents, local jurisdictions and transit agencies together to improve mobility in disadvantaged Equity Priority Communities (EPC). EPCs are census tracts that exceed low-income and minority household thresholds, or that exhibit a combination of disadvantaged indicators such as elderly, disabled, and rentburdened households.

The East Palo Alto City Council approved the original East Palo Alto CBTP on October 4, 2005. For that plan, the study area was limited to a single census tract within the city boundary. The study area for the 2023 Southeast San Mateo (SESM) CBTP was expanded significantly due the identification of EPCs in East Palo Alto, Redwood City, Menlo Park and unincorporated San Mateo County.

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Per MTC guidelines, the 2023 SESM CBTP is being presented to the City Councils of East Palo Alto, Menlo Park and Redwood City, as well as the San Mateo County Board of Supervisors, for resolutions of local support.

The purpose of this staff report is to introduce and adopt a resolution of local support for the 2023 SESM CBTP, prior to adoption of the 2023 SESM CBTP by MTC.

Analysis
The Southeast San Mateo (SESM) Community-Based Transportation Planning Program The 2023 SESM CBTP was initiated in 2019, following selection of lead consultant PlaceWorks by C/CAG. A 23-person Advisory Body composed of local jurisdiction staff, active transportation advocacy groups, CBOs and transit agency staff was convened and met four times throughout the CBTP process. Per MTC guidelines, an Outreach Strategy composed of multiple outreach techniques was approved. As a result of the COVID-19 pandemic and shelter-in-place mandates, the outreach process was delayed and the outreach strategy revised multiple times.

The draft SESM CBTP recommendations and rankings were reviewed by staff of all four jurisdictions in June 2022. The Administrative Draft SESM CBTP was also reviewed by jurisdiction staff in November 2022, prior to release of the Public Review Draft SESM CBTP.

On March 15th, 2023, the C/CAG team presented the Public Review Draft to local leadership groups, including the East Palo Public Works and Transportation Commission, for final review.

The East Palo Alto Public Works and Transportation Commission requested a series of revisions to the Public Draft SESM CBTP. The East Palo Alto Public Works and Transportation Commission requests the three (3) additions (in underline), shown in Table 1, to be incorporated into the 2023 Southeast San Mateo County CBTP prior to adoption.

Table 1: Public Works and Transportation Commission CBTP Revisions No. Revision
1 Chapter 2:

2.3.1.3 SHUTTLE
The Stanford University Marguerite Shuttle is an additional transit resource for residents of East Palo Alto and the larger CBTP study area. Although privately operated and routed outside the CBTP study area, shuttle service is free and open to riders without Stanford University identification. The Marguerite Shuttle provides connections to Palo Alto Transit Center and Fremont BART Station and thus is commonly used by EPC residents for access to regional transit. 2 Chapter 3:

3.1.4 EAST PALO ALTO GENERAL PLAN

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The Transportation Element of the 2015 East Palo Alto General Plan discusses transportation network gaps and improvements throughout the city. The element proposes the Dumbarton Rail project, which would run through the northern edge of the East Palo Alto EPCs. As stated by members of the East Palo Alto Public Works and Transportation Commission during the Commission’s review of this CBTP and highlighted in multiple reports and plans, there is ongoing local and regional support for the planned Dumbarton Rail Corridor project. The additional multimodal option between San Mateo County and the East Bay would have equity-based, economic and environmental benefits for the CBTP Study Area and entire region.
3 Chapter 4:

4.2 OUTREACH PROCESS
NOVEMBER 9, 2021: EAST PALO ALTO COMMUNITY FARMER’S MARKET Some community members do not feel comfortable accessing the Charter school at Runnymede Street —there is no way to access this school by walking or biking. This concern was reiterated by members of the East Palo Alto Public Works and Transportation Commission during its review of this CBTP.

Commissioners stressed the need for improved multimodal access to East Palo Alto Charter School, including the need to coordinate with MTC, the Bay Trail Project and other partners to unlock the gate to the Bay Trail at the end of Tulane Avenue/Rutgers Street. This would provide direct access to a bikefriendly portion of the Bay Trail, allowing students who live north of the school to access Runnymede Street without riding on University Avenue.

The 2023 SESM CBTP is based on principles of community-based planning established by MTC. Recommendations in the CBTP are the result of direct outreach to residents of disadvantaged communities, with the support and guidance of local staff, transit agencies, CBOs and elected leadership.

The planning process began with the creation of a detailed Community Needs Assessment and roundtable-style discussion with the CBTP Advisory Body, to evaluate mobility challenges in the study area and potential avenues of outreach.

The 2023 SESM CBTP contains the following sections in addition to an Executive Summary and Introduction. The content and structure are consistent with MTC’s guidelines for community planning:

1. Study Area Profile

2. Previous Studies and Mobility Gaps

3. Outreach and Engagement

4. Methodology and Recommendations

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Public Input
As noted, the CBTP public input process adapted to the COVID-19 pandemic multiple times. A bilingual digital outreach and digital/traditional survey campaign was held from March to November 2020. Faced with pandemic-related outreach barriers, beginning in February 2021, the C/CAG team coordinated with local leadership such as the East Palo Alto City Council, North Fair Oaks Community Council, Redwood City Transportation Advisory Committee and Menlo Parks Complete Streets Commission to solicit ideas for additional outreach and partnerships. Following the relaxation of shelter-in-place mandates, a series of interactive, inperson “pop-up” mapping and survey sessions was held at farmer’s market and other community events in East Palo Alto, North Fair Oaks and Redwood City in late 2021.

Key Findings
The 2023 SESM CBTP includes a series of ranked recommendations for improving mobility in all four jurisdictions that comprise the study area. Recommendations are organized by:

1. Pedestrian Projects and Plans

2. Bicycle and Micromobility Projects and Plans

3. Transit and Paratransit Projects and Plans

4. Safety Projects and Plans
Per MTC guidelines, each recommendation is rooted in community feedback, is consistent with adopted plans and policies, and was developed to be implementable. The 2023 SESM CBTP indicates that, consistent with feedback in past planning efforts, EPC residents continue to desire bicycle and pedestrian improvements on primary rights-of-way such as El Camino Real, Middlefield Road, University Avenue, East Bayshore Road Willow Road, Marsh Road, Woodland Avenue and others. Community feedback also indicates the need for improved transit and paratransit access to social service facilities and transit hubs as well as physical improvement to strategically-selected bus stops, all in conformance with SamTrans’ recent operational overhaul known as Reimagine SamTrans.

Key Recommendations
The 2023 SESM CBTP contains two classifications of recommendations specific to East Palo Alto: Those located in the city and under the jurisdictional authority of the city, and those located in the city but under the authority of an outside agency, such as Samtrans or MTC. In total, The CBTP contains 13 recommendations to improve mobility in the East Palo Alto EPC, including:
• Four pedestrian projects and plans;
• Two bicycle and micromobility projects and plans;
• Four transit and paratransit projects (as well as three additional programmatic transit recommendations that would benefit all study area riders); • Three school-related safety projects.

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Next Steps
Resolutions of support for the 2023 SESM CBTP have been approved by the city councils of Redwood City and Menlo Park. The San Mateo County Board of Supervisor will decide on the 2023 SESM CBTP on June 13, 2023. The Public Draft 2023 SESM CBTP will then be revised in response to comments from each jurisdiction into a Final Draft 2023 SESM CBTP. It will then be brought to MTC for adoption in July 2023.

The plan can be found on the City website here:
https://www.cityofepa.org/publicworks/page/san-mateo-county-community-basedtransportation-plan The plan is also included as Attachment 2.

Fiscal Impact
There are no fiscal impacts associated with the City Council approving the Master Plan.

Environmental
The proposed action, adoption of a resolution of support, does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

Furthermore, the underlying project, approval of a regional transportation plan, must comply with CEQA. The current proposed action is not designed to approve the underlying project.

Attachments

1. Resolution

2. SSMC Community Based Transportation Plan

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Resolution No. XX-2023 1 of 2
RESOLUTION NO. XX – 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
SUPPORTING THE 2023 SOUTHEAST SAN MATEO COMMUNITY-BASED TRANSPORTATION

PLAN, SUBJECT TO ANY POTENTIAL CHANGES
WHEREAS, the Metropolitan Transportation Commission (MTC) initiated the Community-Based Transportation Planning (CBTP) program in 2002. Funded by MTC and managed by Congestion Management Agencies such as the City/County Association of Governments of San Mateo County (C/CAG); and
WHEREAS, the goal of CBTPs is to bring residents, local jurisdictions and transit agencies together to improve mobility in disadvantaged Equity Priority Communities (EPC); and WHEREAS, the East Palo Alto City Council approved the original East Palo Alto CBTP on October 4, 2005; and
WHEREAS, the study area for the 2023 Southeast San Mateo (SESM) CBTP was expanded significantly due the identification of EPCs in East Palo Alto, Redwood City, Menlo Park and unincorporated San Mateo County; and
WHEREAS, the draft SESM CBTP recommendations and rankings were reviewed by staff of all four jurisdictions in June 2022; and
WHEREAS, in March 2023, the C/CAG team presented the Public Review Draft to local leadership groups, including the East Palo Transportation Commission, for final review; and WHEREAS, per MTC guidelines, the 2023 SESM CBTP is being presented to the City Councils of East Palo Alto, Menlo Park and Redwood City, as well as the San Mateo County Board of Supervisors, for resolutions of local support; and
WHEREAS, the San Mateo County Board of Supervisor will decide on the 2023 SESM CBTP on June 13, 2023. The Public Draft 2023 SESM CBTP will then be revised in response to comments from each jurisdiction into a Final Draft 2023 SESM CBTP. It will then be brought to MTC for adoption in July 2023.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY support the 2023 Southeast San Mateo Community-Based Transportation Plan, subject to any changes.

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Packet Pg. 319 Attachment: Resolution (2687 : 2023 Southeast San Mateo Community-Based Transportation Plan) Resolution No. XX-2023 2 of 2
PASSED AND ADOPTED this 20th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney

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Packet Pg. 320 Attachment: Resolution (2687 : 2023 Southeast San Mateo Community-Based Transportation Plan) Southeast San Mateo County Community-Based
Transportation Plan
City/County Association of Governments of San Mateo County Final Draft | February 2023

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Packet Pg. 321 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community-

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Packet Pg. 322 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community- ORANGE COUNTY • BAY AREA • SACRAMENTO • CENTRAL COAST • LOS ANGELES • INLAND EMPIRE www.placeworks.com
Southeast San Mateo County Community-Based
Transportation Plan
City/County Association of Governments of San Mateo County Prepared By:
2040 Bancroft Way
Suite 400
Berkeley, California 94704
t 510.848.3815
Final Draft | February 2023

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Packet Pg. 323 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community-

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Packet Pg. 324 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community- Southeast San Mateo County Community-Based Transportation Plan i
City/County Association of Governments of San Mateo County List of Figures & Tables ii
Executive Summary3

1. Introduction 15

1.1 Metropolitan Transportation Commission Lifeline Transportation Program 15

1.2 CBTP Guidelines 16

1.3 2005 East Palo Alto CBTP 16

1.4 Current Southeast San Mateo County CBTP Study Area 17

1.5 COVID-19 and CBTP Development 20

2. Study Area Profile 21

2.1 Demographic Analysis 21

2.2 Transportation Patterns 28

2.3 Transportation Network 30

3. Previous and Current Studies 35

3.1 General Plans 35

3.2 Local Transportation and Land Use Plans 36

3.3 Countywide Plans and Studies 38

4. Outreach and Engagement Summary 43

4.1 CBTP Advisory Group 43

4.2 Outreach Process 44

4.3 Digital Survey Results 57

5. Methodology and Recommendations 61

5.1 Evaluation Criteria 61

5.2 Evaluation Process 63

5.3 Recommended Projects and Plans 64

5.4 Evaluation and Monitoring 68
Appendix A Annual CBTP Tracking Checklist
Appendix B Community Needs Assessment
Appendix C Community Outreach Documentation
Table of Contents

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Packet Pg. 325 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community- ii Southeast San Mateo County Community-Based Transportation Plan City/County Association of Governments of San Mateo County List of Figures & Tables
Figure ES-1 2005 and Current CBTP Study Area 4
Table ES-1 Key Findings from Community Outreach Events 6 Table ES-2 Recommended Pedestrian Projects and Plans 11 Table ES-3 Recommended Bicycle and Micromobility Projects and Plans 12 Table ES-4 Recommended Transit and Paratransit Projects and Plans 13 Table ES-5 SESM CBTP Safety Projects and Plans 14
Figure 1-1 2005 East Palo Alto CBTP Study Area 17
Table 1-1 Status of 2005 East Palo Alto CBTP Recommendations 18 Figure 1-2 Southeast San Mateo County CBTP Study Area 19 Table 2-1: Race and Ethnicity 21
Figure 2-1 Population Age 65 and Over 23
Figure 2-2 Population Age 18 Years and Younger 24
Figure 2-3 Percent of Population with Sensory Disability 25 Figure 2-4 Percent of Population with Physical Disability 26 Figure 2-5 Population In Poverty (200% of Federal Poverty Level) 27 Figure 2-6 Household Vehicle Availability in Study Area 28 Figure 2-7 Household Vehicle Availability Countywide 28 Figure 2-8 Percent of Households with No Vehicles 29
Table 2-2 Means of Travel to Work 30
Figure 2-9 Mean Travel Time to Work 31
Figure 2-10 Existing Transit System 32
Figure 2-11 Existing and Proposed Bicycle Facilities 34 Figure 4-1 Outreach Awareness Flier 46
Figure 4-2 Outreach Awareness Flier (Spanish Version) 46 Figure 4-3 Location of CBTP Outreach Events 49
Figure 4-4 East Palo Alto Community Farmer’s Market Response Tally 51 Figure 4-5 East Palo Alto Community Farmer’s Market Results Summary 51 Figure 4-6 Redwood City Kiwanis Farmer’s Market Results Summary 53 Figure 4-7 Fair Oaks Adult Activity Center Results Summary 55 Figure 4-8 Total Pop-up Participation Rates 56
Figure 4-9 Rate of Responses by Topic 57
Figure 4-10 Transit Systems Ridden by Survey Responders 57 Figure 4-11 Problems that Make it Hard to Get Around on Transit 58 Figure 4-12 Problems that Make it Hard to Get Around on Bikes 59 Figure 4-13 Problems that Make it hard to Get Around on Foot 59 Table 5-1 Recommended Pedestrian Projects and Plans 65
Table 5-2 Recommended Bicycle and Micromobility Projects and Plans 66 Table 5-3 Recommended Transit and Paratransit Projects and Plans 69 Table 5-4 Recommended Safety Projects and Plans 70

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Packet Pg. 326 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community- Southeast San Mateo County Community-Based Transportation Plan 3 City/County Association of Governments of San Mateo County Executive Summary
This Community-Based Transportation Plan (CBTP) addresses transportation challenges in Equity Priority Communities (EPC) of Southeast San Mateo County (SESM).

The CBTP was developed by the City/County Association of Governments of San Mateo County (C/CAG) with Association of Bay Area Governments/ Metropolitan Transportation Commission (MTC) grant funding. In conformance with MTC guidelines, it represents a collaborative effort between C/CAG, community members, local stakeholders, and transit operators to identify and fill local mobility gaps in EPCs.

The CBTP recommends a series of projects, plans and programs prioritized using evaluation criteria developed with a CBTP Advisory Group (AG).

COVID-19 and CBTP Development
The COVID-19 pandemic and resulting shelter-in-place mandate of February/March 2020 occurred following approval of a CBTP Community Outreach Strategy. As such, the outreach strategy was revisited. Following a meeting of the AG on August 24, 2020, the CBTP team and MTC approved a new strategy for distanced community outreach and agreed that input related to emerging COVID-19 mobility challenges was relevant to the CBTP and resulting recommendations.

COVID-19 cases peaked from November 2020 to February 2021, again in August 2021, and a third time in January 2022. Each peak required delaying or adapting outreach and working with new partners, a process described fully in Chapter 4.

As a result, some of the community feedback that influences recommendations in this CBTP is directly tied into the mobility context, habits, priorities, and challenges influenced by COVID-19.

Study Area Profile
Demographic Profile
The last CBTP in southeast San Mateo County was the 2005 East Palo Alto CBTP, which was limited to the City of East Palo Alto. The population of the 2005 study was about 30,000, 90 percent of which was composed of people of color.

The current CBTP study area represents a significant geographical expansion from 2005, as shown in Figure ES-1. The study area includes areas of East Palo Alto, Menlo Park, unincorporated San Mateo County and Redwood City, and has a population of approximately 80,000. That population is expected to increase to nearly 100,000 persons by 2040.

The study area remains more diverse than San Mateo County as a whole. About 15 percent of current EPC residents are White, compared to about 40 percent countywide. Sixty-four percent of the study area population is Hispanic or Latinx, and about seven percent is Black.

Approximately 42 percent of all residents in the EPC were living in poverty in 2017, as compared to 19 percent countywide. To reflect high living costs in the Bay Area, the poverty threshold used in the CBTP analysis is 200 percent of the federal poverty threshold. The resulting local thresholds range from $31,754 for a family of two to $101,362 for families of nine or more.

Transit Profile
There are multiple transit options in the CBTP study area, which is served by bus and rail systems managed by several agencies. Commuter rail service is provided by Caltrain, which is routed through Redwood City in the western portion of the study area. Local and intercity bus transit is provided primarily by San Mateo County Transit District (SamTrans). Alameda County Transit District (AC Transit) and Santa Clara Valley Transportation Authority (VTA) provide limited bus and transfer services.

The entire study area is served by SamTrans’ Redi-Wheels paratransit system.

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Packet Pg. 327 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community- 4 Southeast San Mateo County Community-Based Transportation Plan City/County Association of Governments of San Mateo County Figure ES-1 2005 and Current CBTP Study Area
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·|}þ82
Æþ101
Chestnut St
Menlo Park
Caltrain Station
Palo Alto
Caltrain Station
Atherton Caltrain
Station
Redwood City
Caltrain Station
Æþ101
2nd Ave
Euclid Ave
Broadway
Barry Ln
Florence St
High Rd
Blomquist St
University Dr
E Okeefe St
Newbridge St Lincoln Ave
Arguello St
Elena Ave
Ravenswood Ave
Santa Clara Ave
Cooley Ave
Fair Oaks Ln
Oak Grove Ave
Lytton Ave
Marsh Rd
Chilco St
Quarry Rd
Churchill Ave
Camino Al Lago
Newell Rd
Main St
Ringwood Ave
Woodside Dr
Virginia Ave
Saint Francis Way
Whipple Ave
Willow Rd
Alameda de Las Pulgas
Middle Ave
Oregon Expy
5th Ave
Seaport Blvd
Sand Hill Rd
Santa Cruz Ave
Woodland Ave
Atherton Ave
E Bayshore Rd
Alma St
Embarcadero Rd
Hudson St
Old County Rd
Bay Rd
Selby Ln
Valparaiso Ave
Channing Ave
University Ave
Middlefield Rd
Veterans Blvd
Woodside Rd
El Camino Real
Source: Metropolitan Transportation Commission, 2018; PlaceWorks 2019. 0 0.375 0.75 1.5
Miles
San Francisco
Bay
S
E
E
M
R
O
S
I2 C

SANTA CLARA
COUNTY

EAST PALO ALTO

MENLO PARK

ATHERTON

REDWOOD CITY
SAN
CARLOS
North Fair Oaks
Menlo
Oaks
Southeast San Mateo County CBTP Study Area
Source: Metropolitan Transportation Commission, 2018; Esri, 2013; PlaceWorks, 2019

PLACEWORKS

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Packet Pg. 328 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community- Southeast San Mateo County Community-Based Transportation Plan 5 City/County Association of Governments of San Mateo County Outreach and Engagement
All CBTP recommendations are based on a community coordination campaign consistent with MTC Guidelines. As detailed in Chapter 4, the outreach process was adapted to changing conditions associated with COVID-19.

Outreach and engagement in this plan included the following components:

1. Oversight by an Advisory Group

2. Project web page

3. Project awareness campaign

4. Bilingual digital transportation survey

5. Meetings with city & community leadership

6. “Pop-up” outreach sessions at events in the study area Advisory Group
Initially, C/CAG convened separate AGs for the Southeast San Mateo County CBTP and Daly City CBTP. However, the AGs were combined at the start of the pandemic. This allowed members to discuss the shared mobility challenges of COVID-19 alongside new outreach strategies. The AG continued to perform its roles of reviewing project milestones, providing direction on reaching specific communities, and prioritizing CBTP recommendations.

The AG was composed of staff from the cities of Menlo Park, Redwood City and East Palo Alto; San Mateo County; various transit agency staff and representatives of transportation-related non-profit organizations. All advisors are listed in Chapter 4.

Project Web Page
The CBTP team developed a project web page on the C/CAG website. The web page included background information on the CBTP process, project submittals such as the Community Needs Assessment and AG meeting presentations. Links to Spanish and English versions of the online transportation survey were also uploaded to the webpage.

Awareness Campaign
The CBTP team developed a graphics-rich Outreach Awareness Notice in English (see Figure 4-1) and Spanish (see Figure 4-2) to notice the public of outreach events in various EPCs. The flier was adapted to each event.

Transportation Survey
A bilingual on-line survey was released in late 2020. It was designed to assess rates of active transportation and transit use, identify barriers to those options, and highlight community resources (hospitals, supermarkets, etc.) that are difficult to access. The survey also included questions about mobility challenges associated with shelter-inplace restrictions and changing work conditions due to COVID-19.

Outreach to Community Leadership
The CBTP team presented to the following community and city leaders during the outreach phase of the process:
■ North Fair Oaks Community Council. The CBTP team made a virtual presentation to the Council on February 25, 2021. ■ East Palo Alto City Council. The CBTP team made a virtual presentation to the Council on March 2, 2021.
■ Redwood City Transportation Advisory Committee. The CBTP team made a virtual presentation to the Committee on March 9, 2021. ■ Menlo Park Complete Streets Commission. The CBTP team made a virtual presentation to the Commission on March 10, 2021.
“Pop-Up” Sessions
Late 2021 saw increasing COVID-19 vaccination rates and relaxation of shelter-inplace mandates. At this time, the CBTP team utilized previous input from CBTP advisors, City leaders and community surveys to schedule “Pop-Up” outreach sessions at pre-scheduled events in the SESM EPC. The goals of these events were to collect detailed feedback about transportation challenges directly from EPC residents.

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Packet Pg. 329 Attachment: SSMC Community Based Transportation Plan (2687 : 2023 Southeast San Mateo Community- 6 Southeast San Mateo County Community-Based Transportation Plan City/County Association of Governments of San Mateo County Sessions were conducted at the following events with the following participation rates:

East Palo Alto City CouncilJune 20, 2023

East Palo Alto City Council
June 20, 2023