Agenda packet — East Palo Alto City Council, September 5, 2023 (part 1 of 2)

East Palo Alto City Council September 5, 2023 Agenda Page 1 of 5

EAST PALO ALTO CITY COUNCIL REGULAR

MEETING AND JOINT SUCCESSOR AGENCY

BOARD SPECIAL AGENDA
September 5, 2023, 6:30 p.m.

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

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

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International numbers available: https://zoom.us/u/aMWYF4KT East Palo Alto City Council September 5, 2023 Agenda Page 2 of 5

1. CALL TO ORDER AND ROLL CALL

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

3. APPROVAL OF CONSENT CALENDAR

1. City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?” Recommendation: Adopt a Resolution (Attachment 1):

1. Accepting the staff report on the San Mateo County Civil Grand Jury report titled “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?”, and

2. Authorizing the City Manager to submit, on behalf of the City, a response letter to the San Mateo County Civil Grand Jury’s report.

2. Approval of Agreements for Anti-Displacement Rental Assistance Recommendation: Adopt a resolution:

1. Authorizing the City Manager to award and enter into a one-year agreement for distribution of anti-displacement rental assistance, in a form approved by the City Attorney, with Samaritan House for an amount not to exceed $100,000; and;

2. Appropriating $30,000 for the rental assistance program from the General Fund Reserve in addition to the $70,000 allocation approved by the Council during the FY23- 24 budget adoption hearing

3. South Bayside Waste Management Authority (SBWMA) Property Acquisition Recommendation: Adopt a resolution approving the acquisition of real property located at 1245 San Carlos Avenue, Suite E, San Carlos, California by the South Bayside Waste Management Authority’s (SBWMA) for use as the administrative offices for SBWMA.

4. Rescind the Water Shortage Emergency Declaration
Recommendation: Adopt a resolution:
• Rescinding the declaration of a water shortage emergency adopted by the City Council on June 21, 2022, and declaring that a water shortage condition no longer exists as required by the adopted Water Shortage Contingency Plan • Directing staff to continue implementing water use restrictions consistent with Title 23, Sections 995 and 996(e)(1) of the California Code of Regulations for the duration that this emergency regulation is in effect.

5. 965 Weeks Emergency Vehicle Access Easement
Recommendation: Authorizing the City Manager to execute the emergency vehicular access easement agreement with MP 965 Weeks Street Associates, L.P, granting an easement over a portion of the Rail Spur Trail.

6. Award Agreements with Bolt Staffing, Muchmore than Consulting, LLC & 22nd Century Technologies, Inc for On-Call Administrative and Technical Staffing Support
Recommendation: Adopt a resolution authorizing the City Manager to award, negotiate and execute agreements with Bolt Staffing, Muchmore than Consulting, LLC & 22nd Century Technologies, Inc for On-Call Administrative and Technical Staffing Support, in a East Palo Alto City Council September 5, 2023 Agenda Page 3 of 5 form approved by the City Attorney for all three (3) vendors sharing a total not-to-exceed amount of $500,000, and for a term through June 30, 2026.

7. Award Agreements with Regional Government Services (RGS), Muchmore than Consulting, LLC, and CPS HR Consulting for Human Resources Support Recommendation: Adopt a resolution authorizing the City Manager to award, negotiate, and execute agreements with Regional Government Services (RGS), Muchmore than Consulting, LLC, and CPS HR Consulting for as-needed Human Resources Support, in a form approved by the City Attorney, for all three (3) vendors sharing a total not-to-exceed amount of $200,000 and a term through June 30, 2024, with two annual extensions at the City Manager’s discretion.

8. Agreement with Ken Brown Strategic Consulting
Recommendation: Adopt a resolution:

1. Authorizing the City Manager negotiate and execute a retainer agreement with Ken Brown Strategic Consulting, in a form approved by the City Attorney, for amount not to exceed $155,000 and for a term through June 30, 2024; and

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

9. Professional Services Contract for Traffic Signals, Streetlights, & RRFB Services Recommendation: Adopt a resolution authorizing the City Manager to execute a professional services contract with Cal-West Lighting & Maintenance, Inc. in a form approved by the City Attorney, in the amount not-to-exceed $80,020 per year for a period of five (5) years to provide maintenance services for the City’s traffic signals, streetlights, and rapid rectangular flashing beacon and emergency services.

10. Latino/a Culture & History Month

11. National Health Center Week Proclamation

12. Suicide Prevention Month Proclamation

13. Recovery Happens Month Proclamation

4. CLOSED SESSION - NONE

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

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

6. INFORMATIONAL REPORTS - NONE

7. SPECIAL PRESENTATIONS

1. Presentation from the San Francisquito Creek Joint Powers Authority

2. Presentation from the Boys and Girls Club of the Peninsula

3. Presentation from Veolia Informational Item

8. ADJOURN CITY COUNCIL REGULAR MEETING TO THE JOINT SUCCESSOR AGENCY East Palo Alto City Council September 5, 2023 Agenda Page 4 of 5

9. JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING

1. Approval of San Mateo County Community College District Obligation Recommendation:

1. Approving the maximum of $84,998 contractual pass-through obligation payment to the San Mateo County Community College District for FY 2023-24 pursuant to a former Agency Agreement approved by Resolution No. 34 on November 28, 1988, and

2. Approving the San Mateo County Controller’s Office’s inclusion of such amount in the calculation of contractual pass-through obligations due to San Mateo County Community College District for FY 2023-24.

10. ADJOURN JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING and RECONVENE

CITY COUNCIL REGULAR MEETING

11. PUBLIC HEARINGS

1. TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments
Recommendation:

1. Conduct the public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”); and

2. Adopt the resolution approving the issuance of the Bonds by the CMFA for the benefit of , MP CANDO Weeks Street, LLC, a California limited liability company (the “General Partner”), an affiliate of MidPen Housing Corporation, a California nonprofit benefit corporation, and East Palo Alto Community Alliance and Neighborhood Development Organization (collectively, the “Sponsor”), on behalf of MP 965 Weeks Street Associates, L.P., a California limited partnership, or another ownership entity to be formed by the General Partner or another affiliate of the Sponsor (such limited partnership or other ownership entity, the “Borrower”), to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 et seq; and

3. Authorize the Mayor or designee to execute the Joint Exercise of Powers Agreement with the CMFA.

12. POLICY AND ACTION

1. Parking Around City Parks and Facilities
Recommendation:

1. Accept staff report on parking regulations and enforcement on public streets in and around City Parks and other City facilities;

2. Provide direction to staff regarding the elements raised in the staff report;

3. Direct staff to return to the City Council with proposed modifications to the City’s parking and enforcement policies on public streets in and around City Parks and other City facilities

2. Draft Community Climate Action Plan and Adaptation Strategies 2030 Recommendation: Adopt a resolution approving the City of East Palo Alto’s Community Climate Action Plan and Adaptation Strategies 2030.

13. COUNCIL REPORTS
East Palo Alto City Council September 5, 2023 Agenda Page 5 of 5

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

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

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

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

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

POSTED: August 25, 2023
ATTEST:

James Colin
Acting City Clerk
Future Meetings:

Meeting Date Time
Regular Meeting September 19, 2023 6:30 p.m.

Study Session September 26, 2023 6:00 p.m.

Regular Meeting October 3, 2023 6:30 p.m.

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Alvin Jen, Associate Planner
Elena Lee, Planning Manager
Amy Chen, Community & Economic Development Director
SUBJECT: City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?” Recommendation
Adopt a Resolution (Attachment 1):

1. Accepting the staff report on the San Mateo County Civil Grand Jury report titled “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?”, and

2. Authorizing the City Manager to submit, on behalf of the City, a response letter to the San Mateo County Civil Grand Jury’s report.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
• Promote Housing, Economic and Workforce Development
Background
A city’s responsibility related to Grand Jury reports is governed by California Penal Code Section 933 et seq. In relevant part, a legislative body’s response is due within 90 days from release of the report. Failure to timely respond may lead to further investigation on the subject matter of the report.

On June 12, 2023, the 2022-2023 San Mateo County Civil Grand Jury issued a report titled “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?” (Report). The City is required to submit comments on the findings and recommendations pertaining to the topic within 90 days. The City’s response to the report is due no later than September 11, 2023. The report is provided as Attachment 2 for reference.

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In the Report, the Grand Jury stated that some San Mateo County jurisdictions are relying on the construction of Accessory Dwelling Units (ADUs) to avoid the construction of multi-family and low-income housing over the next eight years, which also coincides with the 2023-2031 6th Cycle for the Housing Element. In 1969, the State Legislature passed the Housing Element Law, which states that every eight years, all jurisdictions in California must plan for housing needs for all residents regardless of income. Additionally, the State has also passed multiple legislations since 2017 to encourage ADU construction and to reduce barriers, including limiting municipal permitting requirements. ADUs, which are considered naturally affordable housing, naturally became a tool for many local jurisdictions to meet its Regional Housing Needs Allocation (RHNA) numbers and provide the required affordable units instead of other types of affordable housing.

The Grand Jury Report identifies several issues with the reliance of ADUs to meet affordable housing needs. One issue is a lack of regulatory limitations on a city’s over-reliance on using ADUs to meet these needs. While ADUs have increased housing inventory, the State, for example, has not provided any guidelines to ensure that low-income households would benefit from this type of housing. Another issue is that ADUs are not necessarily rented to the “open market”. The Report states that oftentimes ADUs are rented or provided to family members or friends, which may not increase the availability of affordable housing units to residents in need in each respective jurisdiction. The last issue that is discussed in the Report is related to affordable housing production. If cities are allowed to count ADUs without deed restrictions toward their RHNA as affordable housing, fewer deed-restricted low-, very low-, and moderateincome apartments and homes would be produced.1

The County of San Mateo and each jurisdiction are required to respond on how to address each finding and how to address affordability monitoring and compliance related to ADUs. City staff is in process of updating the Municipal Code to bring it into compliance with recent state legislative updates related to ADUs and also as a follow up to City Council direction from the December 6, 2022 ADU Council meeting. Staff anticipates bringing a code update for Council consideration in late 2023.

Analysis
The Grand Jury made seven findings and six recommendations in its Report. The findings, recommendations, and the proposed City responses are provided below:

Response to Findings in the Grand Jury Report
Finding #1 Due to the recent changes in California ADU-related laws, local governments cannot condition ADU permits in San Mateo
County on complying with affordability monitoring and
verification.

Response: The City of East Palo Alto agrees with this finding.

Finding #2 San Mateo County and most of its municipalities rely on ADUs 1 San Mateo Grand Jury, “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?”, accessed August 2, 2023, https://www.sanmateocourt.org/documents/grand_jury/2022/2022adu.pdf.

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to meet their affordable housing commitments in their RHNA-6 plans.

Response: The City of East Palo Alto partially agrees with this finding. At the outset, the City of East Palo Alto notes its response should not be construed as a criticism about the over-reliance of other cities in the County on Accessory Dwelling Units (ADUs) to meet their Regional Housing Needs Allocation (RHNA).

Furthermore, reliance within the County on this strategy may vary considerably. For East Palo Alto’s part, the use of ADUs in this way is not substantial and certainly does not rise to the level of prevarication, especially given the City’s pro-housing and housing affordability track record, in addition to its commitment to do its part in helping solve the region’s affordability crisis for its own residents and that of the County.

While the City of East Palo Alto counts ADUs toward meeting its RHNA numbers, this approach is permitted by law, modestly used, and is simply one among many strategies. Specifically, the City has a total extremely low-, very low-, low-, and moderate-income RHNA of 419 units, and planned ADUs
make up only 25 percent of these.

Additionally, the City of East Palo Alto has or plans to develop the following programs to boost the region’s affordable housing:
• Revising our zoning codes to allow for increased
density, which allows for housing that is naturally more affordable.
• Use of housing trust funds to build or finance more
affordable housing.
• Streamlined permitting processes for affordable
housing.
• Strengthening inclusionary zoning requirements that
require a certain percentage of new units to be rented
affordably.
• Commercial impact fees used to build or finance
affordable housing projects.
• Incentives and zoning changes to encourage the
production of ADUs.

Finding #3 Atherton, Hillsborough, Portola Valley, and Woodside rely on ADUs to meet as much as 80 percent of their affordable
housing commitments in their RHNA-6 plans.

Response: The City of East Palo Alto lacks information to agree or disagree with this finding and on that basis disagrees with it.

The City of East Palo Alto is not named in this finding and as such has no comment but because California Penal Code
Section 933 does not provide for such nuance, the City of East

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Palo Alto must respond with disagreement.

Finding #4 California Department of Housing and Community Development (HCD) has instructed San Mateo County
jurisdictions to monitor and verify future ADU production and affordability every two years but has yet to specify how to verify whether very low-, low, or moderate-income households are occupying the ADUs as planned.

Response: The City of East Palo Alto partially agrees with this finding.

HCD has indeed asked jurisdictions to verify future ADU production and affordability every two years; however, HCD is only asking for verification at the initial time of occupancy. The City of East Palo Alto is planning to support a regional ADU monitoring effort through Association of Bay Area
Governments (ABAG) or 21 Elements, a long-standing
collaboration among the 21 jurisdictions of San Mateo County.

The City of East Palo Alto may also explore other means of monitoring and verification, subject to staffing levels and costs.

Finding #5 Other than Brisbane and Redwood City, San Mateo County, and its jurisdictions have yet to articulate how they will monitor and verify ADU production or affordability.

Response: The City of East Palo Alto partially agrees with this finding. San Mateo County jurisdictions met on June 20, 2023, to discuss potential strategies for monitoring ADU affordability levels. The City of East Palo Alto is planning to support a regional ADU monitoring effort through ABAG or 21 Elements. The City of East Palo Alto also has already committed to exploring a local program for frequent monitoring of ADU construction and affordability. Additionally, the City of East Palo Alto has ADU policies and programs in the 2023-2031 6th Cycle Housing Element that commit to reporting on ADU production as part of our annual Housing Element progress reports. This report will provide the number of building permits permitted for ADUs.

The City of East Palo Alto, however, does not have any
policies or programs to track ADU affordability.

Finding #6 Without effective ADU monitoring and verification, it will be impossible to evaluate whether the jurisdictions are meeting their RHNA-6 obligations for very low-, low-, and moderateincome housing units.

Response: The City of East Palo Alto generally agrees with this finding.

The key purpose of the Report is that HCD’s 30-30-30-10 formula, used by most jurisdictions in the County, does not mirror a jurisdiction’s actual allocation to categories from very low-, low-, and moderate-income levels. As stated above, the City of East Palo Alto is planning to support a regional

3.1 Packet Pg. 9
approach to monitoring ADU affordability in addition to making local changes within the City.

Finding #7 ADU affordability and occupancy could be monitored by agencies such as HIP Housing which has proven systems and processes to verify occupancy of deed-restricted rental properties in San Mateo County.

Response: The City of East Palo Alto agrees with this finding. HIP Housing is one potential partner agency. The City is committed to addressing this issue with the resources it requires, which will depend on the magnitude of the problem within its
jurisdictional bounds.

Response to Recommendations in the Grand Jury Report
Recommendation #1 San Mateo County and each city should immediately stop using ADUs to meet their State-mandated very low-, low-, and moderate-income housing targets in their Housing
Element submissions until they have also proposed an
effective monitoring system that verifies how newly
developed ADUs will be used.

Response: The recommendation will not be implemented because it may not be necessary or reasonable. While the City of East Palo Alto shares the Civil Grand Jury’s goal to increase ADU affordability monitoring, this recommendation is not a one-size fits all approach. While the Report’s data does merit studying the issues raised therein further, it does not contain data specific to the City of East Palo Alto indicating that the City’s use of ADUs in fact exacerbates patterns of segregation and exclusion within our community. For
example, the Report notes that exacerbation of those
issues could happen if “minorities are underrepresented among homeowners”. As a primarily minority community, it would seem prudent to explore this level of
underrepresentation first and then calibrate a response accordingly.

Furthermore, the City is close to obtaining a compliance letter from HCD. As such, it is simply neither wise nor

3.1 Packet Pg. 10
feasible for us to make a major change to our housing
policy this late in the process. Nevertheless, the City of East Palo Alto is committed to following the State’s Housing Law and supporting the development of an effective
regional ADU monitoring program which will be operated by 21 Elements or ABAG. As noted earlier, the City of East Palo Alto has already committed to exploring a local
program for frequent monitoring of ADU construction.

Finally, the City is also supporting the development of a new ADU non-profit that will have programs to incentivize the production of affordable ADUs in San Mateo County.

The City will aim to have this monitoring program in place for future Housing Element cycles.

Recommendation #2 By February 1, 2024, San Mateo County and each city should develop, adopt, and implement a verification system capable of monitoring and verifying how new developed
ADUs are being used.

Response: Part of the recommendation has yet to be implemented but will be in the future. However, part of the recommendation is not warranted. The City of East Palo Alto agrees that it is important to have high quality occupancy data for ADUs. As noted earlier, the City plans to participate in the 21
Elements or ABAG ADU monitoring system, in addition to
exploring its own. The monitoring is projected to launch in January 2025 and will likely survey people about their plans for their ADU at the time permits are issued. The City’s primary concern is the dearth of resources to fund and
implement ADU verification and monitoring activities. The City has long struggled to provide and maintain the level of service the community deserves with its limited resources.

Whatever local monitoring solution the City chooses to
pursue must be sustainable. The City will need to maintain funds and personnel to oversee and implement any such
program. Leaving aside potential homeowner privacy
concerns, the City is mindful of the costs of engaging with thousands of homeowners every year and whether that
poses a practical barrier to having an ongoing verification system that checks the income of every resident of every ADU in the City.

Recommendation #3 By February 1, 2024, San Mateo County and each city should develop and adopt incentives for ADU owners which could be offered in exchange for deed restrictions that would include requirements for ADU tenants to participate in independent monitoring.

Response: This recommendation has yet to be implemented but will be in the future. The City of East Palo Alto agrees with the goal

3.1 Packet Pg. 11
of adopting an affordable ADU program. The City has
already welcomed legislative changes that liberalize the approval process for ADUs and taken liberal interpretations, where appropriate. However, the City of East Palo Alto
would note that this liberalization moves ADU approval
closer to a by-right land use, which leaves less room for cities and counties to exact or incentivize (using land use incentives), for example, affordability restrictions.

Additionally, the City is actively involved in the creation of an ADU nonprofit to serve San Mateo County jurisdictions, which is being coordinated through 21 Elements. 21
Elements has been working on behalf of the City and
researching best practices to encourage the development of ADUs. The draft work plan for the non-profit calls for it to offer programs to incentivize the production of affordable ADUs and support homeowners in constructing ADUs in
exchange for agreeing to rent at affordable levels. The nonprofit is projected to launch in July 2024 and will be financially supported by San Mateo County jurisdictions as well as private philanthropy if possible.

Recommendation #4 By February 1, 2024, San Mateo County and each city should track the intended use of ADUs – rented or nonrented – during the permitted process and offer incentives in exchange for deed restrictions that require ADUs to be used as rentals.

Response: This recommendation has yet to be implemented but will be implemented in the future. As part of the monitoring
program referenced in response to Recommendation #2
(R2), the City of East Palo Alto will track the intended use of ADUs. The City will explore developing an incentive
program that offers incentives in exchange for affordability requirements such as deed restrictions. However, as noted in R3 above, the State legislative changes may provide a greater benefit than the City’s resource challenged ability to offer land use incentives to encourage deed restrictions.

Furthermore, a more effective means may lie elsewhere;
offering a tax incentive to homeowners who rent their ADUs at deep affordability levels. The City would support such a legislative effort at the State level.

Recommendation #5 By April 1, 2024, San Mateo County and each city should develop and adopt a new ADUs affordability distribution formula specific to each jurisdiction to the extent that are used for meeting the very low-, low-, and moderate-income housing requirements in their RHNA Housing Elements.

This recommendation will not be implemented because it is

3.1 Packet Pg. 12
Response: not warranted or is not reasonable. While we agree with the importance of an accurate distribution formula, given the relatively small size of the City of East Palo Alto, a more meaningful distribution formula can be attained by
collecting data on ADUs constructed across all San Mateo County jurisdictions. The City is supporting the creation of an ADU monitoring program through 21 Elements or ABAG,
which will collect data that can be used to revise the
distribution formula based on actual observed income
levels.

The City of East Palo Alto does not believe the current data suggests amending the current formula of 30-30-30-10. The UC Berkeley study upon which the Report’s findings were based, surveyed thousands of homeowners statewide with
repeat mailing. The data was aggregated to reduce the
margin of errors. If the City were to follow this
recommendation, it is not clear we could achieve the same margin of error. It would be likely too large given the likely smaller numbers of households to be surveyed. The City is aware of no data that suggests significant variation from city to city. It is the City of East Palo Alto’s understanding that the 30-30-30-10 formula was crafted to have significant cushion built in to ensure cities did not inadvertently underproduce the amount of housing needed.

Recommendation #6
Response:

San Mateo County and each city should consider working
together to address Recommendations 2 and 3.

This recommendation has been implemented. San Mateo
County jurisdictions have and will continue to work
collaboratively through 21 Elements to develop, adopt, and implement housing policies and programs in the county.

San Mateo County jurisdictions are already working
together to address Recommendations 2 and 3.

The City of East Palo Alto plans to participate in the shared ADU nonprofit and other regional endeavors to address
these issues as appropriate.

Fiscal Impact
There are no fiscal impacts associated with the items discussed in this memorandum.

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the City’s website.

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.

Attachments

1. Resolution

2. 2022-2023 Civil Grand Jury Report: Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?

3.1 Packet Pg. 14
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY OF EAST PALO ALTO CITY MANAGER TO SUBMIT A RESPONSE LETTER TO THE HONORABLE NANCY L. FINEMAN, JUDGE FOR SAN MATEO COUNTY

SUPERIOR COURT, RELATING TO THE SAN MATEO COUNTY CIVIL GRAND JURY REPORT TITLED “ACCESSORY DWELLING UNITS: AFFORDABLE HOUSING’S PANACEA OR PREVARICATION?” DATED JUNE 12, 2023
WHEREAS, a city’s responsibility related to Grand Jury reports is governed by California Penal Code Section 933 et seq. In relevant part, a legislative body’s response is due within 90 days from release of the report. Failure to timely respond may lead to further investigation on the subject matter of the report; and
WHEREAS, on June 12, 2023, the San Mateo County Superior Court Executive Officer Mr. Neal Taniguchi sent a letter to the City Manager of East Palo Alto providing a copy of the San Mateo County Civil Grand Jury Report titled “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?” and requesting the City’s response to the report by September 11, 2023; and
WHEREAS, at the September 5, 2023, City Council meeting, the City Council considered the San Mateo Grand Jury Report and authorized the City Manager to transmit the City’s response to the Grand Jury; and
WHEREAS, City staff recommends updating the City’s response to the Grand Jury report to reflect Council direction, as necessary.

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

1. Accepts the staff report on the San Mateo County Civil Grand Jury report entitled “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?”; and

2. Authorizes the City Manager to submit on behalf of the City a response letter, attached hereto as Exhibit A, and incorporated herein by this reference, to the San Mateo County Civil Grand Jury’s report.

PASSED AND ADOPTED this 5
th day of September 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Gauthier, Mayor

3.1.a
Packet Pg. 15
Attachment: Resolution (2747 : City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Uni) ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John Lê, City Attorney

3.1.a
Packet Pg. 16
Attachment: Resolution (2747 : City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Uni)

EXHIBIT A
Honorable Nancy L. Fineman
Judge of the Superior Court
c/o Bianca Fasuescu
Hall of Justice
400 County Center; 8
th Floor
Redwood City, CA 94063-1655
RE: Grand Jury Report: “Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication?” Dear Judge Fineman:

The City Council of the City of East Palo Alto voted at its public meeting on September 5, 2023, to authorize this response to the San Mateo County Civil Grand Jury Report “Accessory Dwelling Units:

Affordable Housing’s Panacea or Prevarication” released on June 12, 2023. The City’s response to the findings and recommendations of the report are listed below.

Finding #1 Due to the recent changes in California ADU-replated laws, local governments cannot condition ADU permits in San Mateo County on complying with affordability monitoring and verification.

Response: The City of East Palo Alto agrees with this finding.

Finding #2 San Mateo County and most of its municipalities rely on ADUs to meet their affordable housing commitments in their RHNA-6 plans.

For East Palo Alto’s part, the use of ADUs in this way is not substantial and certainly does not rise to the level of prevarication, especially given the City’s pro-housing and housing affordability track record, in addition to its commitment to do its part in helping solve the region’s affordability crisis for its own residents and that of the County. While the City of East Palo Alto counts ADUs toward meeting its RHNA numbers, this approach is permitted by law, modestly used, and is simply one among many strategies. Specifically, the City has a total extremely low-, very low-, low-, and moderate-income RHNA of 419 units, and planned ADUs make up only 25 percent of these.

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Attachment: Resolution (2747 : City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Uni) • Streamlined permitting processes for affordable housing. • Strengthening inclusionary zoning requirements that require a certain percentage of new units to be rented affordably.
• Commercial impact fees used to build or finance affordable housing projects. • Incentives and zoning changes to encourage the production of ADUs.

Finding #3 Atherton, Hillsborough, Portola Valley, and Woodside rely on ADUs to meet as much as 80 percent of their affordable housing commitments in their RHNA-6 plans.

Response: The City of East Palo Alto lacks information to agree or disagree with this finding and on that basis disagrees with it. The City of East Palo Alto is not named in this finding and as such has no comment but because California Penal Code Section 933 does not provide for such nuance, the City of East Palo Alto must respond with disagreement.

Finding #4 California Department of Housing and Community Development (HCD) has instructed San Mateo County jurisdictions to monitor and verify future ADU production and affordability every two years but has yet to specify how to verify whether very low-, low-, or moderate-income households are occupying the ADUs as planned.

Response: The City of East Palo Alto partially agrees with this finding. HCD has indeed asked jurisdictions to verify future ADU production and affordability every two years; however, HCD is only asking for verification at the initial time of occupancy. The City of East Palo Alto is planning to support a regional ADU monitoring effort through Association of Bay Area Governments (ABAG) or 21 Elements, a long-standing collaboration among the 21 jurisdictions of San Mateo County. The City of East Palo Alto may also explore other means of monitoring and verification, subject to staffing levels and costs.

Finding #5 Other than Brisbane and Redwood City, San Mateo County, and its jurisdictions have yet to articulate how they will monitor and verify ADU production or affordability.

Response: The City of East Palo Alto generally agrees with this finding. The key purpose of the Report is that HCD’s 30-30-30-10 formula, used by most jurisdictions in the County, does not mirror a jurisdiction’s actual allocation to categories from very low-, low-, and moderate-income levels. As stated above, the City of East Palo Alto is planning to support a regional approach to monitoring ADU affordability in addition to making local changes within the City.

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Attachment: Resolution (2747 : City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Uni) Finding #7 ADU affordability and occupancy could be monitored by agencies such as HIP Housing which has proven systems and processes to verify occupancy of deed-restricted rental properties in San Mateo County.

Response to Recommendations in the Grand Jury Report
Recommendation #1 San Mateo County and each city should immediately stop using ADUs to meet their State-mandated very low-, low-, and moderate-income housing targets in their Housing Element submissions until they have also proposed an effective monitoring system that verifies how newly developed ADUs will be used.

Response: The recommendation will not be implemented because it may not be necessary or reasonable. While the City of East Palo Alto shares the Civil Grand Jury’s goal to increase ADU affordability monitoring, this recommendation is not a one-size fits all approach. While the Report’s data does merit studying the issues raised therein further, it does not contain data specific to the City of East Palo Alto indicating that the City’s use of ADUs in fact exacerbates patterns of segregation and exclusion within our community. For example, the Report notes that exacerbation of those issues could happen if “minorities are underrepresented among homeowners”. As a primarily minority community, it would seem prudent to explore this level of underrepresentation first and then calibrate a response accordingly.

At this late stage, it may not be prudent or feasible to revise our Housing Element to eliminate the use of ADUs to meet affordable housing goals. The City of East Palo Alto’s Housing Element was developed through a rigorous process of multiple years of public input and revisions. Furthermore, the City is close to obtaining a compliance letter from HCD. As such, it is simply neither wise nor feasible for us to make a major change to our housing policy this late in the process. Nevertheless, the City of East Palo Alto is committed to following the State’s Housing Law and supporting the development of an effective regional ADU monitoring program which will be operated by 21 Elements or ABAG. As noted earlier, the City of East Palo Alto has already committed to exploring a local program for frequent monitoring of ADU construction. Finally, the City is also supporting the development of a new ADU non-profit that will have programs to incentivize the production of affordable ADUs in San Mateo County. The City will aim to have this monitoring program in place for future Housing Element cycles.

Response: Part of the recommendation has yet to be implemented but will be in the future.

However, part of the recommendation is not warranted. The City of East Palo Alto agrees that it is important to have high quality occupancy data for ADUs. As noted earlier, the City plans to participate in the 21 Elements or ABAG ADU monitoring system, in addition to exploring its own. The monitoring is projected to launch in January 2025 and will likely survey people about their plans for their ADU at the time permits are issued. The City’s primary concern is the dearth of resources to fund and implement ADU verification and monitoring activities. The City has long struggled to provide and maintain the level of service the community deserves with its limited resources. Whatever local monitoring solution the City chooses to pursue must be sustainable. The City will need to maintain funds and personnel to oversee and implement any such program. Leaving aside potential

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Attachment: Resolution (2747 : City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Uni) homeowner privacy concerns, the City is mindful of the costs of engaging with thousands of homeowners every year and whether that poses a practical barrier to having an ongoing verification system that checks the income of every resident of every ADU in the City.

Response: This recommendation has yet to be implemented but will be in the future. The City of East Palo Alto agrees with the goal of adopting an affordable ADU program. The City has already welcomed legislative changes that liberalize the approval process for ADUs and taken liberal interpretations, where appropriate. However, the City of East Palo Alto would note that this liberalization moves ADU approval closer to a by-right land use, which leaves less room for cities and counties to exact or incentivize (using land use incentives), for example, affordability restrictions.

Additionally, the City is actively involved in the creation of an ADU nonprofit to serve San Mateo County jurisdictions, which is being coordinated through 21 Elements. 21 Elements has been working on behalf of the City and researching best practices to encourage the development of ADUs. The draft work plan for the non-profit calls for it to offer programs to incentivize the production of affordable ADUs and support homeowners in constructing ADUs in exchange for agreeing to rent at affordable levels. The nonprofit is projected to launch in July 2024 and will be financially supported by San Mateo County jurisdictions as well as private philanthropy if possible.

Recommendation #4 By February 1, 2024, San Mateo County and each city should track the intended use of ADUs – rented or non-rented – during the permitted process and offer incentives in exchange for deed restrictions that require ADUs to be used as rentals.

Response: This recommendation has yet to be implemented but will be implemented in the future.

As part of the monitoring program referenced in response to Recommendation #2 (R2), the City of East Palo Alto will track the intended use of ADUs. The City will explore developing an incentive program that offers incentives in exchange for affordability requirements such as deed restrictions.

However, as noted in R3 above, the State legislative changes may provide a greater benefit than the City’s resource challenged ability to offer land use incentives to encourage deed restrictions.

Furthermore, a more effective means may lie elsewhere; offering a tax incentive to homeowners who rent their ADUs at deep affordability levels. The City would support such a legislative effort at the State level.

Response: This recommendation will not be implemented because it is not warranted or is not reasonable. While we agree with the importance of an accurate distribution formula, given the relatively small size of the City of East Palo Alto, a more meaningful distribution formula can be attained by collecting data on ADUs constructed across all San Mateo County jurisdictions. The City is supporting the creation of an ADU monitoring program through 21 Elements or ABAG which will collect data that can be used to revise the distribution formula based on actual observed income levels.

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Attachment: Resolution (2747 : City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Uni) The City of East Palo Alto does not believe the current data suggests amending the current formula of 30-30-30-10. The UC Berkeley study upon which the Report’s findings were based, surveyed thousands of homeowners statewide with repeat mailing. The data was aggregated to reduce the margin of errors. If the City were to follow this recommendation, it is not clear we could achieve the same margin of error. It would be likely too large given the likely smaller numbers of households to be surveyed. The City is aware of no data that suggests significant variation from city to city. It is the City of East Palo Alto’s understanding that the 30-30-30-10 formula was crafted to have significant cushion built in to ensure cities did not inadvertently underproduce the amount of housing needed.

Recommendation #6 San Mateo County and each city should consider working together to address Recommendations 2 and 3.

Response: This recommendation has been implemented. San Mateo County jurisdictions have and will continue to work collaboratively through 21 Elements to develop, adopt, and implement housing policies and programs in the county. San Mateo County jurisdictions are already working together to address Recommendations 2 and 3.

The City of East Palo Alto plans to participate in the shared ADU nonprofit and other regional endeavors to address these issues as appropriate.

This response was approved by the City of East Palo Alto City Council at a public meeting on September 5, 2023.

Sincerely,
Melvin E. Gaines
City Manager
City of East Palo Alto

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Attachment: Resolution (2747 : City’s Response to the San Mateo County Grand Jury’s 2022-2023 Final Report, “Accessory Dwelling Uni) Accessory Dwelling Units:

Affordable Housing’s Panacea or Prevarication?
Release Date: June 12, 2023
2022-2023 San Mateo County Grand Jury

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Attachment: 2022-2023 Civil Grand Jury Report: Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication? (2747 : City’s 2022-2023 San Mateo County Civil Grand Jury 1
“You can always count on Americans to do the right thing – after they’ve tried everything else.” Winston Churchill
“Every man must decide whether he will walk in the light of creative altruism or in the darkness of destructive selfishness.” Martin Luther King, Jr.

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Attachment: 2022-2023 Civil Grand Jury Report: Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication? (2747 : City’s 2022-2023 San Mateo County Civil Grand Jury 2
ISSUE
Are some San Mateo County communities misusing Accessory Dwelling Units (ADUs) to avoid the construction of multifamily low-income housing over the next eight years?

SUMMARY
Anointed the “epicenter of America’s housing dysfunction” by Harvard Business Review this year, the San Francisco Bay Area has faced an acute housing shortage at all levels for decades, especially for those who have the least.

And it is no longer news that many of the workers that San Mateo County communities depend upon daily – first responders, teachers, nurses, city employees, gardeners, and housekeepers, to name just a few – cannot afford a decent place to live and raise their families close to their jobs.

To address the issue, the State Legislature in 1969 passed the Housing Element Law, which says all California cities, towns, and counties, every eight years, must plan for the housing needs of all their residents regardless of income, which effectively requires development of affordable housing. Many changes and additions have been made to the law over the years, most recently eliminating zoning restrictions governing ADUs – small homes or apartments that share a single-family lot of a larger primary residence – and allowing communities to count them as affordable housing in their Regional Housing Needs Allocation (RHNA) plans.

At issue:
● Although their intentions have been good, the State has neglected to include any form of regulation to ensure low-income tenants ultimately use these ADUs as planned. ● Because owners often rent their ADUs to family and friends, they can exacerbate patterns of segregation and exclusion.1
● And perhaps most importantly – counting ADUs as affordable housing will likely result in cities issuing permits for fewer deed-restricted low-, very low-, and moderate-income apartments and homes.

Without accountability through oversight and regulations, low-, very low-, and moderate-income housing now planned in some San Mateo County jurisdictions may end up existing solely on paper and never in operation.

This problem is most acute in Atherton, Hillsborough, Portola Valley, and Woodside, where some residents are up in arms over the State-mandated housing requirements, and the city governments, trying to appease them, are proposing counting on ADUs to meet as much as 80 percent of their affordable housing targets.

1 Association of Bay Area Governments, “Final Regional Housing Needs Allocation (RHNA) Plan, San Francisco Bay Area, 2023-2031”, accessed May 27, 2023, https://abag.ca.gov/sites/default/files/documents/2021- 12/Final_RHNA_Allocation_Report_2023-2031-approved_0.pdf

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Attachment: 2022-2023 Civil Grand Jury Report: Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication? (2747 : City’s 2022-2023 San Mateo County Civil Grand Jury 3
Assembly Bill 72 (2017) gives the California Department of Housing and Community Development (HCD) enforcement capability on local government’s land use, planning, and zoning requirements. In the current RHNA-6 (2023-2031) planning cycle, HCD demands that San Mateo County jurisdictions monitor and verify ADU affordability every two years. However, HCD has not specified how to prove the ADUs are rented to very low-, low- or moderate-income households, leaving it to the communities to find a solution.

So far, jurisdictions have yet to do so, even though local independent agencies such as HIP Housing have systems and services in place, which they use to verify affordability of deed-restricted affordable housing, and that could be adapted Countywide to monitor and verify ADUs’ affordability and occupancy in a manner that adheres to fair housing guidelines.

California needs to build 2.5 million homes by 2030 to meet current housing demands, according to the HCD. But the State averages only about 125,000 new homes annually – a shortfall by nearly two-thirds.

ADUs can, indeed, provide affordable housing. And to many citizens of affluent communities, they are an appealing alternative to multi-family, deed-restricted affordable housing projects. However, just because the law makes it possible to count ADUs as affordable housing, it does not exempt cities and towns from credibly planning for badly needed affordable housing.

BACKGROUND
One of the State’s long-standing priorities has been to increase the availability of affordable housing for all economic segments.

HCD – the California Department of Housing and Community Development – focuses on making this happen by working with local jurisdictions to create rental and homeownership opportunities for all Californians, including individuals and families who are experiencing homelessness.

Beginning in 1969, the State mandated that all California cities, towns, and counties must plan for the housing needs of all Californians, regardless of income. They meet this mandate by developing and updating a Housing Element, part of a local jurisdiction’s General Plan, which shows where they will allow new housing and describes the policies and strategies necessary to support building new housing.

The process of updating the Housing Element involves HCD working with various Councils of Governments (COG) to develop a RHNA plan that includes the Regional Housing Needs Determination (RHND), which assigns the number of housing units that each county and city are expected to facilitate being built in the subsequent eight years to accommodate projected growth.

In the case of the Bay Area, this Council of Governments is the Association of Bay Area Governments (ABAG), which represents all nine Bay Area counties, including San Mateo County and its 20 cities and towns. Components that ABAG considers in determining each Bay Area county’s and city’s allocation of housing units include population, employment potential, proximity to transportation centers, open space, inclusivity, and diversification, all of which are becoming increasingly important to the State, according to ABAG reports.

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Multiple bills in both houses of the State Legislature have been proposed over the years to change the process and increase the amount of State control over housing development. Particularly significant changes occurred during the 2017 legislative session when senators and assembly members proposed approximately 150 housing bills. That year the Governor ultimately signed a package of 15 bills related to funding for housing, streamlining development approvals, and increasing accountability for meeting the requirements of the Housing Element Law. These included bills that significantly changed the RHNA process, requiring additional outreach and reporting, modifying how to calculate the RHND to reflect unmet housing needs better, increasing the number of topics to be considered in the allocation methodology, and giving HCD, on behalf of the State, the ability to sue individual counties or cities for not meeting requirements.

Updating the Housing Element every eight years is an iterative process involving HCD, the regional COGs, the State Department of Finance (DOF), and local jurisdictions. (See Appendix D.) But the ultimate authority for approval of the RHNA, the RHND, and the associated Housing Elements resides with HCD.

The current approved RHNA plan developed by ABAG is known as RHNA-6, which spans 2023 to 2031.

HCD requires each jurisdiction to submit its completed Housing Element for review and approval by a specific date. For RHNA-6, the due date for San Mateo County and its cities was January 31, 2023.

Before the due date, the jurisdictions were able to send their draft Housing Elements to HCD for preliminary review and comments and make necessary modifications that HCD highlights. Any jurisdiction which fails to meet the deadline for submission of their completed Housing Element is subject to a potential “builders remedy” action that forces a city to allow building projects regardless of whether they meet most of the local zoning restrictions.

Once Housing Elements are approved, HCD monitors the progress of approved RHNA plans by requiring each jurisdiction to report its building permit activities annually. If progress is below expectations, the jurisdiction must develop alternative strategies for review and approval by HCD.

During the RHNA-5 (2015-2023) progress reviews submissions, cities began including ADUs as part of the overall housing inventory in their annual reports because State legislation (Government Code section 65852.150) that became effective in January 2017 stated that ADUs are a valuable form of housing in California, which also "provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others, at below market prices within existing neighborhoods." Numerous Senate and Assembly bills were enacted in 2018 and 2020, requiring local jurisdictions to streamline and allow for ease of ADU production to increase housing for all income categories. With these encouragements, ADUs being deemed a viable housing option, and facing stringent RHNA-6 requirements of approximately three times more housing units than in the RHNA-5 cycle, a few affluent San Mateo cities have proposed using ADUs to satisfy most of their plans to meet the required number of housing units in the various income categories.
“ADUs are not a panacea, but they’re a good tool in the toolbox,” said a planning consultant working for a San Mateo County city. “Most land on The Peninsula is single-family homes. ADUs are opening land that was not open before. But higher density housing near transit is better.”

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Added a city manager: “I think they (ADUs) are a piece of the solution, but not all of it. I think ADUs are an important way to provide opportunities for other things – where people want multigenerational living onsite, for caretakers, or other folks – they can reside in an ADU even if they’re not paying rent.”

DISCUSSION
While HCD-approved RHNA Housing Elements do not require the cities and counties to build affordable housing, the jurisdictions must adjust zoning ordinances, issue permits to allow construction of affordable housing, and initiate programs that incentivize such construction.

However, as shown in Chart 1 below, significant portions of San Mateo County's affordable housing in RHNA-5 (2015-2023) plans did not materialize – most likely due to a lack of permit applications.

With RHNA-5’s significantly lower targets, the less-than-expected performance during the RHNA-5 cycle foreshadows the enormous challenge the County’s cities and towns now face in meeting the RHNA-6 goals for the next eight years, which are approximately three times larger, as shown in Chart 2 below.

Chart 1: RHNA-5 Affordable Housing Required vs. Permitted

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Chart 2: RHNA-5 Affordable Housing Allocations vs RHNA-6 Besides increasing affordable housing targets by nearly 300 percent, the State has made other significant changes in the ADU laws to address the current housing crunch.

Law Year Impact
AB671 2019 Through Housing Elements, HCD to promote ADUs for affordable rent AB670 2019 Any local covenants and restrictions on new housing are void AB587 2019 Deed-restricted sale of ADU is allowed separately from the main house AB 68 2019 Removes local restrictions on minimum size, requirement of owner occupancy, parking requirements for garage conversion, and any impact fee.

AB 3182 2020 Permitting process within 60 days
SB9 2021 Facilitates lot split and allows more than1 ADU per property AB 345 2021 Allows owners to sell ADUs separately
AB 2221 2023 Pre-specific time permit frame for approval of ADU applications SB 897 2023 Increases the ADU height limit to 18’ and allows retro permitting of previous unauthorized ADUs.

The net effect of these changes was to minimize municipal-level regulations on ADUs – such as parking requirements, property line setbacks, height limits, or the number of ADUs on one property – and make

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ADUs an acceptable means to meet affordable housing obligations. Given these changes, namely high mandatory targets for affordable housing, enthusiastic support by the State of ADUs as affordable housing, and requiring zero land use rezoning for ADUs, nearly all San Mateo County cities and towns include ADUs in their RHNA-6 Housing Elements.

The issue, however, is that for every ADU included in a Housing Element – regardless of whether the ADU is built and rented to very low-, low-, or moderate-income tenants – one verifiable, deed-restricted affordable housing unit will not be built in that jurisdiction by a developer.

So, How Did We Get Here?
California cities and counties can now use ADUs to help satisfy their RHNA requirements. But calculating how many ADUs to put into a Housing Element and how to distribute them into each income category, differ from other housing options.

ABAG instructs San Mateo County jurisdictions that the standard method is first to estimate the number of ADUs that homeowners will build in a planning period, which is 2023 through 2031 for RHNA-6.

In its technical memo “Using ADUs to Satisfy RHNA,” ABAG advises members that the estimate should be based on the average number of ADU building permits issued each year, multiplied by eight, because there are eight years in a housing element cycle.
“Most cities base their determination of annual ADU permits by averaging the building permits approved each year since 2019 when State law made it easier to construct the units,” the technical memo explains:
“There is a small amount of flexibility in the calculations,” the memo continues. “If numbers were low in 2019 but were high in 2020, 2021, and 2022, a jurisdiction could potentially use 2020-2022 as the baseline. This rationale would be bolstered if there was a logical explanation for the change, e.g., the jurisdiction further loosened regulations in 2020. Projecting a higher number of ADUs than what has been demonstrated through permit approvals in recent years may be possible, but more challenging. A slightly larger number may be warranted if a robust, funded, and clear plan to increase production has been put in place. However, you are strongly encouraged to coordinate with HCD before deviating from the standard methodology.”
Once cities complete their estimate, they must distribute those units into each income category.

To help its members, ABAG analyzed ADU affordability. Using data from a 2020 statewide survey of homeowners who had constructed ADUs in 2018 or 2019, ABAG concluded that the assumptions in the chart below are generally applicable in most jurisdictions. Many Bay Area jurisdictions chose to use these numbers instead of conducting their own affordability analysis.

Percent Income Category
30% Very Low Income
30% Low Income
30% Moderate Income
10% Above Moderate

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“UC Berkeley Terner Center did a statewide survey of ADU affordability, and they worked with ABAG to adjust it for the Bay Area specifically,” said a San Mateo County planner. “So those (numbers) are based on surveys and data analysis of actual ADUs that have been produced, and the rents that are being offered to tenants. We are just accepting their analysis as is.” San Mateo County jurisdictions have almost unanimously adopted ABAG’s 30-30-30-10 formula.

However, a 2021 report and recommendations for RHNA-6 prepared by ABAG’s Housing Technical Assistance Team, titled “DRAFT Affordability of Accessory Dwelling Units,” says that although ADUs are often affordable, jurisdictions should be cautious about relying on them too heavily because of fair housing concerns:
“Many ADUs are affordable to lower and moderate-income households because they are rented to family and friends of the homeowners,” the report states. “If minorities are underrepresented among homeowners, the families and potentially friends of the homeowners will be primarily white. Therefore, relying too heavily on ADUs could inadvertently exacerbate patterns of segregation and exclusion.” The report also acknowledges that ADUs often do not serve large families, another critical fair housing concern.

And while ADUs accomplish an essential fair housing goal by adding new homes in parts of the municipality that are more likely to be areas of opportunity, the report recommends that jurisdictions with fair housing concerns "may want to use more conservative assumptions based on open market rentals, excluding units made available to family and friends," as summarized below:

Percent Income Category
5% Very Low Income
30% Low Income
50% Moderate Income
15% Above Moderate
So far, 16 San Mateo County cities have chosen the 30-30-30-10 formula, implying there are no fair housing concerns in their jurisdictions.

Only two cities – San Carlos and San Mateo – use ABAG’s more conservative formula of 5-30-50-15 in their plans. One city – Belmont – used its own judgment.2 And one – Colma – does not use ADUs in their plans at all to meet State requirements.

But in all cases, these statistical estimates may not reflect the actual usage of constructed ADUs.

Determining that would require actual verification by each local jurisdiction.

2 City of Belmont, “General Housing Element Draft 2023-2031”, p. 25, accessed May 27, 2023, https://www.belmont.gov/home/showpublisheddocument/21721/637968613354630000

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Attachment: 2022-2023 Civil Grand Jury Report: Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication? (2747 : City’s 2022-2023 San Mateo County Civil Grand Jury 9
ADUs planned in RHNA-6
(May 11, 2023)
City Very Low Low Moderate Above
Moderate
Total ADUs Total
RHNA-6
Requirement
Atherton 56 56 56 112 280 348
Belmont 0 0 80 0 80 1785
Brisbane 12 12 12 4 40 1588
Burlingame 50 50 50 17 167 3257
Colma - - - - 0 202
Daly City 151 151 151 50 503 4838
East Palo Alto 35 34 34 12 115 829
Foster City 7 7 7 3 24 1896
Hillsborough 84 84 84 28 280 554
Menlo Park 26 25 26 8 85 2946
Millbrae 34 34 33 11 112 2199
Pacifica 56 56 56 19 187 1892
Portola Valley 28 28 28 8 92 253
Redwood City 152 152 152 50 506 4588
San Bruno 72 72 72 24 240 3165
San Carlos 10 61 102 30 203 2735
San Mateo 22 132 220 66 440 7015
South San
Francisco
113 113 113 38 377 3956
Unincorporated
San Mateo
107 107 107 36 357 2833
Woodside 36 36 36 12 120 328
(This table includes all San Mateo County jurisdictions that have submitted Housing Element plans to HCD for review. As of June 1, 2023, Half Moon Bay and Daly City have not submitted RHNA-6 plans for HCD review.) Accordingly, if HCD approves cities and towns' current Housing Elements, San Mateo County may end up with many affordable housing units that exist only on paper because they are counted as affordable units by the State but never made available or occupied by people who need affordable housing:
“BMR (below market rate) unit displacement is a legitimate issue,” said a city planning consultant. “RHNA looks at (the number of) units, not the number of people being housed. For the State, they’re all counted the same – an ADU or three-bedroom apartment, five vs. one or two people. In the eyes of the State, they’re all the same.”

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Finally, the cities and towns relying primarily on ADUs to meet their RHNA-6 housing targets do not meet the overall objectives required by HCD and RHNA of:
● Increasing the housing supply and mix of housing types, tenure, and affordability ● Promoting infill development and socioeconomic equity, protecting environmental and agricultural resources, and encouraging efficient development patterns ● Promoting an improved intraregional relationship between jobs and housing ● Balancing disproportionate household income distributions ● Affirmatively furthering fair housing
Housing and Community Development Pushes Back
Four San Mateo County municipalities – Atherton, Hillsborough, Portola Valley, and Woodside – rely heavily on ADUs to meet low-income housing requirements in their RHNA-6 Housing Elements.

May 17, 2023
While HCD does not single out those four cities for their heavy reliance on ADUs to meet their affordable housing needs, throughout the process of submission and review of draft RHNA-6 plans, HCD consistently instructed San Mateo County cities and towns that they must monitor and verify ADU production and affordability at least every two years but has not specified an acceptable process for verifying the affordability level of ADUs as planned.

Should San Mateo County and its cities seek outside help on this issue, there are a handful of independent non-profit agencies and for-profit real estate management companies operating today in the Bay Area that have established systems and processes for monitoring and verifying rented occupied housing for continued affordability and adherence to fair housing guidelines while maintaining tenant and owner privacy – which was an issue continually raised by City Managers and other officials during Grand Jury interviews.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
ADUs as Percent of RHNA6 Affordable Housing

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ADU Affordability Monitoring Emphasized in HCD Review Letters to Jurisdictions Atherton (4-4-23)
Program 3.812 (New Construction of Affordable Accessory Dwelling Units): While the element was revised to include timing of each action, it is unclear how affordability will be established. The program should be revised to clarify actions to establish and track affordability.

East Palo Alto (4-25-23)
Accessory Dwelling Units (ADU): As noted in the prior review, the element should include a program that commits to frequent monitoring (every other year) for production and affordability, and specific commitment to adopt alternative measures such as rezoning or amending the element within a specific time (e.g., six months) as needed.

Foster City (4-24-23)
Program H-D-4-h (ADU Monitoring): While the program commits to evaluating alternative actions by the end of 2026, it must commit to specific alternative actions and monitor production and affordability of ADUs more than once in the planning period (e.g., every two years).

Hillsborough (1-10-23
This analysis should specifically address whether the ADU strategy to accommodate lower-income households contributes to continued exclusion and disparities in access to opportunity and how the strategy promotes housing choice for a variety of households including lower-income households, and large families.

To support assumptions for ADUs in the planning period, the element should reduce the number of ADUs assumed per year and reconcile trends with HCD records, including additional information such as more recent permitted units and inquiries, resources and incentives, other relevant factors, and modify policies and programs as appropriate. Further, programs should commit to additional incentives and strategies, frequent monitoring (every other year), and specific commitment to adopt alternative measures such as rezoning or amending the element within a specific time (e.g., six months) if ADU production assumptions are not being achieved.

Millbrae (1-24-23)
Accessory Dwelling Units (ADU): To support assumptions for ADUs in the planning period, programs should commit to additional incentives and strategies, frequent monitoring (every other year) of production and affordability and specific commitment to adopt alternative measures such as rezoning or amending the element within a specific time (e.g., 6 months) if needed.

Depending on the analysis, the element must commit to monitor ADU production and affordability throughout the planning period and implement additional actions if not meeting target numbers within a specified time period (e.g., within six months).

Redwood City (7-8-22)
Programs must be expanded to include incentives to promote the creation and affordability of Accessory Dwelling Units (ADUs).

Examples include exploring and pursuing funding, modifying development standards and reducing fees beyond State law, increasing awareness, pre-approved plans and homeowner/applicant assistance tools. In addition, given the city’s assumptions for ADUs, the element should include a program to monitor permitted ADUs and affordability every other year and take appropriate action such as adjusting assumptions or rezoning within a specified time period (e.g., 6 months).

San Bruno (3-29-23)
Accessory Dwelling Units (ADU): While the element revised the ADU assumptions, Program 4-P must be revised to commit to additional incentives and strategies, frequent monitoring (every other year) and specific commitment to adopt alternative measures such as rezoning or amending the element within a specific time (e.g., 6 months) if needed. The element must also address affordability assumptions for ADU projections.

San Mateo (3-27-23)
Accessory Dwelling Units (ADU): Program 1.4 must commit to also monitoring affordability of the ADU units that are permitted as well as provide additional incentives or identify additional sites if production and affordability assumptions are not met.

County of San Mateo (4-20-23)
Accessory Dwelling Units (ADU): Further, programs should commit to additional incentives and strategies, frequent monitoring for production and affordability (every other year) and specific commitment to adopt alternative measures such as rezoning or amending the element within a specific time (e.g., 6 months) if needed. The element must also address affordability assumptions for ADU projections, by clarifying what ABAG assumptions are utilized.

South San Francisco (3-30-23)
The element should include a commitment to reconcile trends with reported units within the Cities submitted annual progress report. Further, as Stated in the previous review, programs should commit to additional incentives and strategies, frequent monitoring (every other year) and specific commitment to adopt alternative measures such as rezoning or amending the element within a specific time (e.g., six months) if number and affordability assumptions are not met.

Woodside (10-14-22)
Depending on the analysis, the element must commit to monitor ADU production and affordability throughout the planning period and implement additional actions if not meeting target numbers within a specified time period (e.g., within six months).

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In their HCD approved housing plans, Brisbane and Redwood City aren’t definitive about how they will monitor ADU affordability but imply they will use surveys to comply with HCD instructions.

Redwood City plans to collect ADU rental data during its permitting process. And Brisbane says, if available, it will participate in a regional forgivable ADU construction loan program in exchange for limiting rentals of the ADUs to extremely low-income households for 15 years. Brisbane said it is also exploring a possible city forgivable loan program if the regional program doesn’t materialize. “We can’t force people to report to us or to be honest with us,” said one jurisdiction’s planner.

Another city’s chief planner concluded that a deed restriction – any limitation on a property that affects the ability of the property owner to utilize the property as they wish, such as a requirement to verify a tenant’s income and rent charged – “is the best way to (enforce) affordability.” Alternatively, one city planning official suggested the formation of a Countywide nonprofit to income-qualify and match renters to available ADUs, thereby monitoring and enforcing affordability because the smaller towns and cities don't have the resources to perform that function on their own.

Finally, a fourth city planner offered an alternative view: “We’re not a city hiding behind ADUs. ABAG gave us a formula. We plopped it in. If the State said you can’t count ADUs at all, that would be fine.” A Long, Long Way to Go
The Superior Court of California requires all San Mateo County Civil Grand Jury investigation reports to be completed and published by June 30 annually.

And although the law required San Mateo County cities and towns to submit their housing plans by January 31, 2023, as of June 1, Daly City has yet to adopt and submit a draft plan to HCD for review and approval.

Meanwhile, plans from Foster City, Half Moon Bay, Millbrae and Pacifica are now under HCD review.

So far, HCD has reviewed and rejected plans from 14 jurisdictions: Atherton, Belmont, Burlingame, Colma, East Palo Alto, Hillsborough, Menlo Park, Portola Valley, San Bruno, San Carlos, San Mateo, South San Francisco, Woodside, and San Mateo County, which is responsible for unincorporated areas.

As of the publication of this report, only Redwood City and Brisbane had completed the process and received the green light from HCD to proceed.

One reason cited for the delay is most San Mateo County cities and towns don’t have a large enough staff to manage the workload that RHNA planning represents, so they outsource. And many could not find timely help because the consultants were busy preparing RHNA-6 plans for Southern California cities, which were due before San Mateo County municipalities. That caused many communities here to fall behind and are now out of compliance with the timing of their Housing Element submissions.

These delays, coupled with citizen objections to multifamily housing in their communities, almost guarantee RHNA-6 disputes will end up in the courts and remain unresolved for many years to come and postpone the building of sorely needed affordable housing indefinitely.

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FINDINGS
F1. Due to recent changes in California ADU-related laws, local governments cannot condition ADU permits in San Mateo County on complying with affordability monitoring and verification.

F2. San Mateo County and most of its municipalities rely on ADUs to meet their affordable housing commitments in their RHNA-6 plans.

F3. Atherton, Hillsborough, Portola Valley, and Woodside rely on ADUs to meet as much as 80 percent of their affordable housing commitments in their RHNA-6 plans.

F4. HCD has instructed San Mateo County jurisdictions to monitor and verify future ADU production and affordability every two years but has yet to specify how to verify whether very low-, low- or moderate-income households are occupying the ADUs as planned.

F5. Other than Brisbane and Redwood City, San Mateo County and its jurisdictions have yet to articulate how they will monitor and verify ADU production or affordability.

F6. Without effective ADU monitoring and verification, it will be impossible to evaluate whether the jurisdictions are meeting their RHNA-6 obligations for low-, very-low, and moderate-income housing units.

F7. ADU affordability and occupancy could be monitored by agencies such as HIP Housing which has proven systems and processes to verify occupancy of deed-restricted rental properties in San Mateo County.

RECOMMENDATIONS
R1. San Mateo County and each City should immediately stop using ADUs to meet their Statemandated very low-, low-, and moderate-income housing targets in their Housing Element submissions until they have also proposed an effective monitoring system that verifies how newly developed ADU’s will be used.

R2. By February 1, 2024, San Mateo County and each City should develop, adopt, and implement a verification system capable of monitoring and verifying how newly developed ADU’s are being used.

R3. By February 1, 2024, San Mateo County and each City should develop and adopt incentives for ADU owners which could be offered in exchange for deed restrictions that would include requirements for ADU tenants to participate in independent monitoring.

R4. By February 1, 2024, San Mateo County and each City should track the intended use of ADUs – rented or non-rented – during the permitting process and offer incentives in exchange for deed restrictions that require ADUs to be used as rentals.

R5. By April 1, 2024, San Mateo County and each City should develop and adopt a new ADU affordability distribution formula specific to each jurisdiction to the extent they are used for meeting the very low-, low-, and moderate-income housing requirements in their RHNA housing elements.

R6. San Mateo County and each City should consider working together to address Recommendations 2 and 3.

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REQUEST FOR RESPONSES
Pursuant to Penal Code Section 933.05, the Civil Grand Jury requests responses from San Mateo County and all 20 cities’ governing bodies for each and every Finding and Recommendation.

The governing bodies should be aware that their comments or responses must be conducted subject to the Brown Act's notice, agenda, and open meeting requirements.

RESPONSE REQUIREMENTS
California Penal Code Section 933.05 provides: For purposes of subdivision of Section 933, as to each Grand Jury finding, the responding person or entity shall report one of the following:
(1) The respondent agrees with the finding.
(2) The respondent disagrees wholly or partially with the finding; in which case the response shall specify the portion of the disputed finding and shall include an explanation of the reasons.

For purposes of subdivision of Section 933, as to each Grand Jury recommendation, the responding person or entity shall report one of the following actions:
(1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has yet to be implemented but will be implemented in the future, with a timeframe for implementation.
(3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This time frame shall be at most six months from the Grand Jury report's publication date.
(4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefore.

METHODOLOGY
The San Mateo County Civil Grand Jury used numerous approaches to develop this report. ● Preliminary Research
The Grand Jury studied RHNA-5 historical information and RHNA-6 Housing Elements submitted to HCD by the cities and towns in San Mateo County as they became available.

Before conducting in-depth research, the Grand Jury studied ABAG's reports on RHNA-6 housing allocations, introducing numerous issues and a means to understand how jurisdictions establish housing allocations. Additionally, the Grand Jury reviewed a 2021 ABAG report on ADU affordability for RHNA-6 and RHNA-5 annual progress reports to understand history.

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The Grand Jury also reviewed a report on ADUs titled “A Solution on the Ground: Assessing the Feasibility of Second Units in Unincorporated San Mateo County, Implementing the Backyard Revolution: Perspectives of California's ADU Owners,” April 22, 2021, Karen Chapple, Dori Ganetsos, Emmanuel Lopez, UC Berkeley Center for Community Innovation.

An additional resource for Preliminary Research has been the press. Particularly following the January 31, 2023 deadline for RHNA-6 submissions, nearly 60 articles provided insights and analysis the Grand Jury could not find elsewhere.

For a complete list of sources, see the Bibliography below. ● Survey
After conducting its Preliminary Research, the Grand Jury sent an eight-question survey in October 2022 to the city managers of the 20 San Mateo County cities and towns and the San Mateo County planning and building department responsible for the County's unincorporated areas.

See Appendix A for survey results.
● Interviews
Much of the time spent by the Grand Jury on this investigation was in more than 30 interviews with 21 city managers and planning managers, five heads of nonprofit housing entities in San Mateo County, and executives at ABAG, HCD, and several other government bodies. ● Continued Research
Because RHNA-6 submissions and HCD replies are ongoing, the Grand Jury has continued to monitor the status of RHNA-6 submissions and HCD responses.

This report reflects submissions received prior to the report's due date of June 30, 2023.

GLOSSARY
Accessory Dwelling Units (ADUs)
An accessory dwelling unit (ADU) is a legal and regulatory term for a secondary house or apartment that shares the building lot of a larger primary home. The unit is often used to provide additional income through rent or to house a family member. For example, an elderly parent could live in a small unit and avoid having to move to an assisted living facility. (Source: Investopedia) Affordable Housing: Very Low Income; Low Income; Moderate Income; Above Moderate Income Affordable housing is generally defined as housing on which the occupant is paying no more than 30 percent of gross income for housing costs, including utilities. (Source: www.hud.gov)

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Association of Bay Area Governments (ABAG)
The Association of Bay Area Governments (ABAG) is the Council of Governments (COG) for the ninecounty Bay Area. One of California’s earliest COGs, ABAG was founded to protect regional assets from State control. ABAG continues to serve the Bay Area by providing a regional venue for collaboration and problem-solving. ABAG’s work program includes management over key regional assets, such as the San Francisco Estuary and the Bay Trail Project. It also offers a variety of cost-effective member services programs such as Pooled Liability Assurance Network (PLAN) Corporation (offering affordable liability, property insurance, claims management, risk management, and bond coverage to 30 municipalities) and financial services (offering tax-exempt capital financing for the acquisition, construction, and rehabilitation of affordable multifamily housing, health care facilities, schools, and other community facilities). ABAG POWER Natural Gas Pool conducts pooled purchasing of natural gas on behalf of 38 local governments and special districts. ABAG is also the COG that allocates the regional housing needs assessment (RHNA). (Source: CALCOG)
Below Market Rate (BMR)
A BMR unit is a housing unit that is priced to be affordable to households that are of moderate income or below. These housing units are often built by local government, nonprofits, or as a requirement of the developer (Inclusionary Affordable Housing Ordinance). As a result, these homes have certain deed restrictions recorded on the property, ensuring the home remains affordable for future generations. (Source: County of San Mateo)
California Department of Finance (DOF)
The California Department of Finance is a state cabinet-level agency within the government of California.

The Department of Finance is responsible for preparing, explaining, and administering the state's annual financial plan, which the Governor of California is required under the California Constitution to present by January 10 of each year to the public. The Department of Finance's other duties include analyzing the budgets of proposed laws in the California State Legislature, creating, and monitoring current and future economic forecasts of the state, estimating population demographics and enrollment projections, and maintaining the state's accounting and financial reporting systems.

California Department of Housing and Community Development (HCD) The California Department of Housing and Community Development (HCD) develops housing policy and building codes (i.e., the California Building Standards Code), regulates manufactured homes and mobile home parks, and administers housing finance, economic development, and community development programs. (Source: https://www.hcd.ca.gov/about-hcd)

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Council of Governments (COG)
Councils of Governments (COGs) are voluntary associations representing member local governments, mainly cities, and counties, that seek to provide cooperative planning, coordination, and technical assistance on issues of mutual concern that cross jurisdictional lines. (Source: WRCOG) Deed Restrictions
A deed restriction is a term widely used in real estate to refer to any limitation on a property that limits the ability of the property owner to utilize the property as they wish. (Source: CA Realty Training) General Plan
State law requires every city and county in California to prepare a General Plan for its future growth and development. A General Plan covers land use, transportation, housing, open space, natural resources, and public services. Local General Plans have been mandatory in California since the 1950s. State law also requires the cities and counties to periodically update their General Plans in response to changing conditions. Each General Plan includes maps expressing the community's vision of how and where it will grow and change. The General Plan typically has a time horizon of about 20 years. Once a General Plan is adopted, it is used by the City Council, local commissions, and City Staff as they make day-to-day decisions about the community's future. (Source: City of San Rafael) Housing Element
Since 1969, California has required that all local governments (cities and counties) adequately plan to meet the housing needs of everyone in the community. California's local governments meet this requirement by adopting housing plans as part of their General Plan (also required by the State). General Plans serve as the local government's blueprint for how the city or county will grow and develop and include eight elements: land use, transportation, conservation, noise, open space, safety, environmental justice, and housing. California's Housing Element Law acknowledges that, for the private market to address Californians' housing needs and demand, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing development. As a result, housing policy in California rests mainly on the effective implementation of local General Plans and, in particular, local Housing Elements. (Source: California Department of Housing and Community Development)
Jurisdiction (city, town, or county)
1: the power, right, or authority to interpret and apply the law; a matter that falls within the court’s jurisdiction
2: a: the authority of a sovereign power to govern or legislate b: the power or right to exercise authority: CONTROL
3: the limits or territory within which authority may be exercised (Source: Merriam-Webster) Regional Housing Needs Allocation (RHNA)
Every eight years, ABAG develops the Regional Housing Needs Allocation (RHNA) plan approved by HCD and used to assign each city and county in the Bay Area their fair share of new housing units to build. These housing units are intended to accommodate existing needs and projected growth in the region. The RHNA process is critical because it requires all cities and counties to plan for the region's housing needs, regardless of income, to prepare for future growth and ease the California's acute housing crisis. (Source: ABAG)

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Regional Housing Needs Determination (RHND)
The California Department of Housing and Community Development (HCD) identifies the total number of homes each region in California must plan to meet the housing needs of people at all income levels. They base the number on population projections produced by the California Department of Finance and adjustments incorporating the region's current housing needs. The jurisdictions separate the total number of housing units from HCD into four income categories that cover everything from housing for very lowincome households to market-rate housing. ABAG is responsible for developing a methodology to allocate a portion of this housing need to every local government in the Bay Area. (Source: ABAG)

BIBLIOGRAPHY
Government Agencies
● Department of Housing and Urban Development Office of Policy Development and Research. “U.S Accessory Dwelling Units: Case Study”. https://www.huduser.gov/portal/publications/adu.pdf. June 2008
● U.S. Department of Housing and Urban Development. “Glossary of Terms to Affordable Housing”. https://archives.hud.gov/local/nv/goodstories/2006-04-06glos.cfm. August 18, 2011 ● Department of Housing and Community Development Division of Housing Policy. “ADU Law Amendments Memorandum”. https://www.hcd.ca.gov/community-development/housingelement/housing-element-memos/docs/Accessory-Dwelling-Unit-Legislation.pdf. May 29, 2018 ● California Legislative Information. “Assembly Bill No. 68”. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB68. 2019-2020 ● OpenStates. “California Senate Bill SB 13”. https://openStates.org/ca/bills/20192020/SB13/. 2019- 2020
● 21 Elements. “Second Units and Junior Second Units”. http://www.21elements.com/second-units. 2020
● Department of Housing and Community Development Division of Housing Policy. “Local Agency Accessory Dwelling Units, Memorandum”. https://www.hcd.ca.gov/community-development/housingelement/docs/ADU_TA_Memo_Final_01-10-20.pdf. January 10, 2020 ● Department of Housing and Community Development Division of Housing Policy. “Final Regional Housing Need Determination”. https://www.hcd.ca.gov/community-development/housingelement/docs/ABAGRHNA-Final060920(r).pdf. June 9, 2020 ● Association of Bay Area Governments. “Housing Element Law. Changes from 1969 to the Present”. https://abag.ca.gov/sites/default/files/rhna_background.pdf. August 1, 2020 ● California Legislative Information. “Assembly Bill No. 3182”. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB3182. September 28, 2020

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● Southern California Association of Governments. “SCAG Regional Accessory Dwelling Unit Affordability Analysis”. https://scag.ca.gov/sites/main/files/fileattachments/adu_affordability_analysis_120120v2.pdf?1606868527. December 1, 2020 ● Association of Bay Area Governments. “DRAFT Affordability of Accessory Dwelling Units”. http://21elements.com/documents-mainmenu-3/housing-elements/rhna-6-2022-2030/1327-draft-aduaffordability-report-sep-8-2021-1/file. September 8, 2021 ● California Legislative Information. “Assembly Bill No. 345”. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB345. September 28, 2021
● Association of Bay Area Governments. “Using ADUs to Satisfy RHNA”. https://abag.ca.gov/technicalassistance/using-adus-satisfy-rhna. March 10, 2022 ● Auditor of the State of California. “Regional Housing Needs Assessments”. https://www.auditor.ca.gov/pdfs/reports/2021-125.pdf. March 17, 2022 ● California Department of Housing and Community Development. “Accessory Dwelling Unit Handbook”. https://www.hcd.ca.gov/sites/default/files/2022-07/ADUHandbookUpdate.pdf. July 2022 ● Association of Bay Area Governments. “Final Regional Housing Needs Allocation (RHNA) Plan: San Francisco Bay Area, 2023-2031”. https://abag.ca.gov/sites/default/files/documents/2022- 12/Final%20RHNA%20Methodology%20Report%202023-2031_update_11-22.pdf. November 2022 ● State of California Department of Justice. “Attorney General Bonta Puts city of Huntington Beach on Notice That Its Proposed Ordinance Violates State Housing Law”. https://oag.ca.gov/news/pressreleases/attorney-general-bonta-puts-city-huntington-beach-notice-its-proposed-ordinance. February 13, 2023
● Department of Housing and Community Development Division of Housing Policy Development. “RE:

Town of Atherton’s 6th Cycle (2023-2031) Adopted Housing Element”. https://www.dropbox.com/home/Grand%20Jury%202022%20-%202023/Committees/ADUs/ADU%20- %20research%20materials/Housing%20Elements/Pending?preview=Atherton_HCD_Letter40423.pdf.

April 4, 2023

Grand Jury Reports
● San Mateo County Civil Grand Jury. “Second Units: Adding New Housing In The Neighborhood”. https://www.sanmateocourt.org/documents/grand_jury/2019/second_units.pdf. 2019-2020 Independent Agencies
● UC Berkeley. “A Solution on the Ground: Assessing the Feasibility of Second Units in Unincorporated San Mateo County”. https://smcrecovery.org/wp-content/uploads/2021/08/UC-Report-on-ADUfeasability.pdf. January 2017 ● Ramsey-Musolf, Darrel. “Accessory Dwelling Units as Low-Income Housing: California’s Faustian Bargain”. https://www.mdpi.com/2413-8851/2/3/89. September 18, 2018

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● AARP. “The ABCs of ADUs”. https://www.hcd.ca.gov/policy-research/docs/adu-guide-websingles.pdf. 2019 ● California YIMBY (Yes in My Back Yard). “AB 881”. https://cayimby.org/ab-881/. October 9, 2019 ● Center of Community Innovation. “The ADU Scorecard: Grading ADU Ordinances in California”. https://www.aducalifornia.org/wp-content/uploads/2020/02/ADU-Scorecard-InterimReport-200201-

1.pdf. February 1, 2020
● UC Berkeley Center for Community Innovation. “Implementing the Backyard Revolution: Perspectives of California’s ADU Owners”. https://www.aducalifornia.org/wpcontent/uploads/2021/04/Implementing-the-Backyard-Revolution.pdf. April 22, 2021 ● Terner Center for Housing Innovation, UC Berkely. “First Ever Statewide ADU Owner Survey Shows Growth, Room for Improvement”. https://ternercenter.berkeley.edu/blog/cci-adu-survey/. April 22, 2021
● University of California, Berkeley. “California ADU”. https://www.aducalifornia.org/. August 16, 2021 ● Colburn, Gregg. Aldern, Clayton. “Homelessness is a Housing Problem”. https://homelessnesshousingproblem.com/. 2021-2022
● Sumner, Scott. “California housing prices and homelessness”. https://www.econlib.org/californiahousing-prices-and-homelessness/. May 23, 2022 ● Williams, Paul. “Carving out a Path for Public Developers”. https://housingchronicle.substack.com/p/carving-out-a-path-for-public-developers. July 14, 2022 ● Terner Center for Housing Innovation, UC Berkeley. “ADUs for All: Breaking Down Barriers to Racial and Economic Equity in Accessory Dwelling Unit Construction”. https://ternercenter.berkeley.edu/research-and-policy/adu-equity-barriers/. August 4, 2022 ● Bertolet, Dan. “Washington Bill Would Boost In-Law Apartments Throughout the State”. https://www.sightline.org/2023/01/21/washington-bill-would-boost-in-law-apartments-throughout-theState/. January 21, 2021 ● Ohanian, Lee. “California’s Failed Soviet-Style Housing Mandates Should End Now”. https://www.hoover.org/research/californias-failed-soviet-style-housing-mandates-should-end-now.

February 7, 2023
● Hamilton, Emily. “Learning from Houston’s Townhouse Reforms”. https://www.mercatus.org/research/policy-briefs/learning-houstons-townhouse-reforms. April 11, 2023

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APPENDICES ● A: Survey Results ● B: Timeline of Important Legislative Events ● C: ADUs: An American Tradition ● D: Housing Elements Are an Iterative Process

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APPENDIX A
Survey Results
Who responded to the survey
Survey responses

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APPENDIX B
Timeline of Important Legislative Events

1. 1970 — the Legislature directed HCD to develop guidelines for housing element preparation on one and five year cycles. SB 1489 (Moscone), emphasized housing need, passed in 1971, and ABX 1 of 1971 established more standards. The California Housing Finance Agency (CalHFA), which also assisted communities in providing affordable housing, was created in 1975. The legislation authorized HCD to review local housing elements for conformity to its guidelines.

2. 1976 — Fair-share was added to the guidelines by HCD. The COGs are now given the responsibility by HCD to distribute shares of low-income and moderate-income housing. The local housing element had to include these income requirements — whether or not communities wanted them. HCD also was given responsibility to review local housing elements. Statewide hearings in 1977 brought out a number of positions on housing elements and HCD requirements.

3. Mid 1980’s — AB 2853 (Roos), provided for faster permit processing and higher densities, and allowed the housing element to meet State goals and be reviewed by HCD. COGs would continue to formulate the fair share for each community, but HCD had final approval of the numbers and each community was to revise its Housing Element every five years.

4. 1990s — Cities and counties looked at housing elements, if certified, as providing protection against lawsuits. In addition, this decade also created the concept of regional allocation “sharing burdens of lower- income households among geographic areas,” without mandated goals.

5. 1993 — The Senate Committee on Local Government held hearings on housing element progress and heard concerns that communities were not doing enough and that housing elements were despised by local governments. Bills changed the cycle timeframe, including AB 2172 (Hauser), SB 1703 (Costa) and SC 320 (Committee). Main topics for discussion by the Committee on Housing and Land Use hearings in 1995 were the housing allocations and the Department of Finance (DoF) projections. A common complaint was that the DoF projections were not complete enough for communities to develop appropriate allocations. The COGs projections also were criticized.

6. 1998 — AB 438 (Torlakson), allowing for the creation of sub-RHNA areas, looked at how housing units were counted. 2001 — SB 910 (Dunn) would have included imposing fines on jurisdictions not complying; and would have tied RHNA to transportation planning on a six year cycle. However, this bill did not pass. 2002 — SB 423 (Torlakson) created a jobs and housing balance incentive program, also known as Workforce Housing Incentive Program. In 2003, at HCD’s request, a working group of stakeholders met to make recommendations, which included:
● Develop more transparency in determining fair shares
● Clarify land inventories of building sites
● Ensure inventories were buildable
● Increase HCD review consistency of local elements
● Explore city self-certification
● Devise better housing element enforcement that would penalize non-compliance.

7. 2004 — AB 2348 (Mullin) clarified the relationship between the land inventory and adequate sites requirement, provided guidance on the content of adequate land inventory, and provided greater development certainty. AB 2158 (Lowenthal) revised the process for determining allocation from just

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DoF to include transportation planning numbers and created a review process.

8. 2005 — AB 1233 (Jones) assured that unmet need from previous RHNA cycles was added into the next cycle.

9. 2017 Housing Legislative Package
Approximately 150 housing bills were submitted in 2017. Fifteen relating to funding, streamlining and accountability, were signed by the governor. These bills significantly changed how RHNA is conducted, requiring additional outreach and reporting, increasing the number of factors included, and the ability of HCD to sue individual cities for not meeting requirements.

SB 2 (Atkins) Building Homes and Jobs Act is projected to generate hundreds of millions of dollars annually for affordable housing, supportive housing, emergency shelters, transitional housing, and other housing needs via a $75 to $225 recording fee on specified real estate documents.

SB 3 (Beall) Veterans and Affordable Housing Bond Act of 2018 places a $4 billion general obligation bond on the November 2018 ballot to fund affordable housing programs and the veterans homeownership program (CalVet).

SB 35 (Wiener) streamlines multifamily housing project approvals, at the request of a developer, in a city that fails to issue building permits for its share of the regional housing need by income category.

SB 35 city approval of a qualifying housing development on a qualifying site is a ministerial act, without need for CEQA review or public hearings.

AB 73 (Chiu) streamlines the housing approval process by allowing jurisdictions to create a housing sustainability district to complete upfront zoning and environmental review in order to receive incentive payments for development projects that are consistent with the ordinance.

SB 167 (Skinner), AB 678 (Bocanegra), and AB 1515 (Daly) are three measures that were amended late in the 2017 legislative session to incorporate changes to the Housing Accountability Act (HAA).

The HAA significantly limits the ability of a jurisdiction to deny an affordable or market-rate housing project that is consistent with existing planning and zoning requirements.

AB 1505 (Bloom) allows a jurisdiction to adopt an ordinance that requires a housing development to include a certain percentage of rental units affordable to and occupied by households with extremely low, very low, low or moderate income.

AB 879 (Grayson) expands upon existing law that requires, by April 1 of each year, general law cities and charter cities to send an annual report to their respective city councils, the State Office of Planning and Research (OPR) and HCD that includes information related to implementation of the General Plan.

AB 1397 (Low) makes numerous changes to how a jurisdiction establishes its housing element site inventory.

AB 72 (Santiago) provides HCD broad new authority to find a jurisdiction’s housing element out of substantial compliance if it determines that REGIONAL the jurisdiction fails to act in compliance with

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its housing element and allows HCD to refer violations of law to the attorney general.

10. 2018 — SB 828 (Wiener) changed the way HCD determines each region’s RHND, adding a number of new factors for consideration and accounting for “unmet need” in the existing housing stock by applying “adjustment factors” to a region’s total projected households, not just the incremental housing growth.

11. 2018 — AB 1771 (Bloom) and AB 686 (Santiago) strengthened the mandate for regions and local governments to combat discrimination, overcome historic patterns of segregation, and create equal access to opportunity through housing planning and decision-making, in other words, to “affirmatively further fair housing.” AB 1771 (Bloom) added to RHNA an enhanced focus on racial equity with an explicit mandate that COGs’ housing distribution plans affirmatively further fair housing and required COGs to survey jurisdictions on their fair housing activities, to identify regional barriers to furthering fair housing, and to recommend strategies or actions to overcome those barriers. AB 686 (Santiago) created a mandate that local jurisdictions plan and administer housing and community development programs and activities in a manner that affirmatively further fair housing.

12. 2019 — AB 1486 (Ting) strengthened the Surplus Lands Act (SLA), which requires that local agencies provide right of first refusal to affordable housing developers when disposing of surplus land by expanding the scope of land subject to the right of first refusal requirement, updating the mechanics of the surplus land disposal process, extending HCD’s enforcement mandate to include the SLA and establishing financial penalties for violation of the act.

AB 1487 (Chiu), authorized ABAG and MTC to place on the ballot regional housing measures to help fund affordable housing and established 3 REGIONAL HOUSING NEEDS ALLOCATION the Bay Area Regional Housing Authority. The 2019-20 State Budget also included significant new resources to support housing planning, including $250 million for local governments and COGs for planning activities. The Bay Area is receiving approximately $50 million in combined funds, split between ABAG and local jurisdictions.

SB 330 (Skinner) made further revisions to the HAA, establishing new criteria for housing approvals at the local level, including prohibiting a local agency from subjecting a project to new ordinances, rules or fees after an application is submitted and limiting the number of hearings on a project to five. The bill also prohibits a local agency from lowering the allowed residential density below that level in effect on January 1, 2018 in high rent, low-vacancy areas, as defined. The bill’s provisions sunset in five years.

AB-881, “Accessory dwelling units,” and AB-68, “Land use: accessory dwelling units”: Makes many of the current restrictions that cities place on ADUs obsolete. It also provides for a streamlined process for approvals.

These bills require permits for ADUs added to single-family and multifamily homes to be approved or denied faster. Current law permits these decisions to take 120 days, but this new law requires decisions within 60 days. These approvals or denials must be issued ministerially, so that way, there are fewer potential issues to encounter. Cities and counties may establish minimum and maximum ADU size requirements, but the maximum size cannot be less than 850 square feet for a one-bedroom ADU or 1,000 square feet for more than one bedroom.

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Most importantly, these bills prohibit any lot coverage, minimum lot size, etc. requirements that municipalities have. Cities have enacted these laws to have the effect of making it impossible to build an ADU. Cities cannot require the correction of nonconforming zoning conditions as part of the approval process.

SB-13 Accessory dwelling units are similar to AB-881 and AB-68 with a couple of significant differences. Before this bill, local agencies could require that the person applying for the ADU occupy either the primary residence or the proposed new structure. This bill exempts from these requirements all proposed ADUs until Jan. 1, 2025. Additionally, this bill removes the impact fee for ADUs smaller than 750 square feet. Even for ADUs larger than that, the impact fees assessed must correlate with the square footage of the primary residence.

SB-13 makes building ADUs cheaper and also removes an essential regulation. Now, landlords who rent their properties out can apply for an ADU for their rental properties.

AB-670, “Common interest developments: accessory dwelling units,” makes it easier for people within HOA complexes to construct ADUs. Specifically, it prevents banning or unreasonably restricting on single-family lots on the construction of these units. Presently, many HOAs have CCRs ("conditions, covenants and restrictions") that prevent people from building ADUs. HOAs may worry about the uniformity of the properties if one has an ADU on it, or they might be concerned that they don't know who is and who isn't renting from an ADU. Regardless, HOAs now need to have a way for people to construct ADUs if they so choose.

HOAs will likely challenge this bill, at least to some degree, in court, but for now, if you live in an HOA complex with single-family homes, you can construct an ADU.

AB-671, “Accessory dwelling units: incentives," requires that general plans incentivize homeowners in some way to construct these ADUs and make them available for low-to-moderate-income households to rent. While it doesn't specify what these incentives will be, it does require local agencies to think about financial incentives and construct a plan.

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-2023 San Mateo County Civil Grand Jury 36

APPENDIX C
ADUs: An American Tradition

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-2023 San Mateo County Civil Grand Jury 37

APPENDIX D
Housing Elements Are an Iterative Process

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Attachment: 2022-2023 Civil Grand Jury Report: Accessory Dwelling Units: Affordable Housing’s Panacea or Prevarication? (2747 : City’s

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Amy Chen, Community & Economic Development Director Natasha Raiburn, Rent Stabilization Program Administrator SUBJECT: Approval of Agreements for Anti-Displacement Rental Assistance Recommendation
Adopt a resolution:

2. Appropriating $30,000 for the rental assistance program from the General Fund Reserve in addition to the $70,000 allocation approved by the Council during the FY23-24 budget adoption hearing
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Promote Housing, Economic and Workforce Development
Background
On October 16, 2018, the City Council approved the City’s five-year Affordable Housing Strategy (Strategy). A key item included in the Strategy was issuance of a Request for Proposals (RFP) to identify an organization(s) using General Funds from Measure O revenue to provide anti-displacement services for renters in the community. Measure O is a general tax with the objective of funding affordable housing, anti-displacement, and homelessness activities, and the generated revenue is included in the General Fund.

On July 5, 2022, staff outlined to the City Council a proposal to continue providing communitybased anti-displacement services, and the City Council authorized $310,000 for, and directed staff to issue an RFP for, Anti-Displacement Services with direction to ensure accountability by

3.2 Packet Pg. 60
defining clear deliverables, performance metrics, regular reporting requirements, and staffing plans. The City issued the RFP on August 1, 2022, with the following requested services based on the identified community needs: legal services, tenant outreach, tenant empowerment & leadership development, case management, and direct rental & financial assistance.

The City received proposals for anti-displacement services from Community Legal Services in East Palo Alto (CLSEPA), Nuestra Casa, and Youth United for Community Action (YUCA) for legal services (eviction defense and other support), tenant advocacy and education, and financial assistance. Despite the City requesting Direct Rental and Financial Services in the RFP, none of the respondents proposed to administer a rent relief program. Staff believes the respondents would assist tenants in applying for rent relief and related financial assistance, but may not have had the capacity to directly administer funds. Thus, the City Council only appropriated $280,000 of the $310,000 they authorized for Anti-Displacement Services. The remaining $30,000 remained unencumbered.

On November 1, 2022, the City Council executed agreements for anti-displacement services with Community Legal Services in East Palo Alto (CLSEPA), Nuestra Casa, and Youth United for Community Action (YUCA) for legal services (eviction defense and other support), tenant advocacy and education, and financial assistance. The contracts total amount was $280,000.

On June 20, 2023, the City Council allocated $70,000 from the General Fund to be used for direct rental assistance. The $30,000 was reallocated from the original proposed budgets of Nuestra Casa and YUCA to CLSEPA to serve additional tenants in need of unlawful detainer assistance. Due to limited capacity CLSEPA did not accept the additional funds and increased scope of work. The allocation by City Council of $70,000 along with the remaining $30,000 from the 2022 Anti-Displacement budgeted funds that were not attached to the executed contracts, totaling to $100,000 were made available to support a new RFP to be issued for the Direct Rental and Financial Services.

On July 17, 2023, the City issued the RFP with the following requested services:

Direct Rental and Financial Assistance: Work with City staff to develop and administer a rent relief program with funds available from the City or other sources. Respondents were requested to highlight how they will target outreach to residents who may benefit from these services, how they will reduce barriers to accessing the funds, and how they will rapidly respond to rental and financial assistance. Examples of direct rental and financial assistance include:
a. Rent or utility payments;
b. First month, last month, and deposit/rental assistance; c. Short-term rental subsidies;
d. Homelessness prevention subsidies;
e. Moving or relocation assistance;
f. Furniture assistance for new move-ins; and
g. Shadow debt payment.

On August 7, 2023, the City received proposals from CLSEPA and Samaritan House. The City evaluated the proposals were and interviewed the respondents on August 11, 2023.Staff has returned to Council to present the RFP results and make a recommendation to award a

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contract to one respondent.

Analysis
The following summarizes the Scope & Cost of Services proposed by each respondent.

1. CLSEPA
The CLSEPA proposal totals $350,039 for year one of the agreement and proposes to distribute rental assistance to 60 East Palo Alto households throughout the contract year.

Existing CLSEPA staff will be assigned to approve and distribute rental assistance. During the interview process CLSEPA clarified that should the requested $350,039 be reduced to the budgeted $100,000 approximately 15-20 households would be assisted as approximately $17,000 would go to staff costs and there was also an overhead fee of 10%. This means that approximately $73,000 would be utilized towards rental assistance.

2. Samaritan House
The Samaritan House proposal totals $100,000, the amount the City budgeted, and proposes to distribute rental assistance to approximately 30-45 unduplicated households with approximately $1900-$3000 for each household. By having the rental assistance be a one-time assistance it will allow funding to reach additional households. Samaritan House proposed that $12,000 would go to staff costs. There was no proposed overhead fee, which leaves the remaining $88,000 to be utilized towards rental assistance.

Based on the above evaluation, staff suggests the City enter into an agreement with Samaritan House for Direct Rental and Financial Assistance.

Next Steps
Staff recommends that the City Council: authorize the City Manager to enter into an agreement, in a form approved by the City Attorney, with Samaritan House for an amount not to exceed $100,000.

The agreement will require the Respondent to submit quarterly progress reports to the City as well as a close-out report when all funds are expended. The quarterly reports will track the measurable outcomes that have been communicated to the Respondents. These reports will be used to ensure that Respondents will maintain on track in achieving the defined objectives and scope of services during the reporting year. Staff will utilize the same report template that was presented at the November 1, 2022, City Council meeting1.

Through the required quarterly progress reports, City staff will monitor the delivery of services to confirm conformance with the terms and performance metrics in the agreements. Samaritan House has accepted the general exemplar agreement and thus City staff expects to have the agreements that are discussed in this staff report executed within 1-2 months, with services to commence immediately thereafter.

Fiscal Impact
1 11/01/2022 City Council Meeting - http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1823

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Staff recommends appropriating $30,000 for the rental assistance program from the General Fund Reserve. The rest of funds ($70,000) are included in the FY23-24 General Fund budgets.

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

Attachments

1. Resolution

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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO AWARD AND ENTER INTO AN AGREEMENT WITH SAMARITIN HOUSE FOR DISTRIBUTION OF ANTIDISPLACEMENT RENTAL ASSISTANCEFOR AN AMOUNT NOT TO EXCEED $100,000; AND APPROPRIATELY THE SAME AMOUNT IN MEASURE O FUNDING WHEREAS, Measure O, approved in November 2016 to levy a business license tax, is a general tax with revenue deposited in the general fund and there is sufficient revenue to pay for the agreements for anti-displacement services since they meet several of the objectives of Measure O; and
WHEREAS, on October 16, 2018, the City Council approved the Five-Year Affordable Housing Strategy (“Strategy”) for the City of East Palo Alto (“City”); and WHEREAS, a key item included in the Strategy was future issuance of a Request for Proposals (“RFP”) to identify an organization(s) to provide Measure O related services to the Community; and
WHEREAS, on June 20, 2023, City Council directed staff to issue an RFP for the distribution of Anti-Displacement Rental Assistance and City staff issued the RFP on July 17, 2023; and
WHEREAS, on August 7, 2023, the City received two proposals, Community Legal Services in East Palo Alto and Samaritan House, submitted proposal for distribution of anti-displacement rental assistance; and
WHEREAS, on September 5, 2023, after evaluating the proposals and conducting interviews on August 11, 2023, staff returned to Council to present the RFP results and make a recommendation to award a contract to one respondent.

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

1. Authorizes the City Manager to enter into a one -year agreement, in a form approved by the City Attorney, with Samaritan House for an amount not to exceed $100,000

2. Appropriating $30,000 for the rental assistance program from the General Fund Reserve in addition to the $70,000 allocation approved by the Council during the FY23-24 budget adoption hearing.

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Attachment: Resolution (2759 : Approval of Agreements for Anti-Displacement Rental Assistance) PASSED AND ADOPTED this 5th day of September 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John Lê, City Attorney

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Attachment: Resolution (2759 : Approval of Agreements for Anti-Displacement Rental Assistance)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Humza Javed, Public Works Director
SUBJECT: South Bayside Waste Management Authority (SBWMA) Property Acquisition Recommendation
Adopt a resolution approving the acquisition of real property located at 1245 San Carlos Avenue, Suite E, San Carlos, California by the South Bayside Waste Management Authority’s (SBWMA) for use as the administrative offices for SBWMA.

Background
SBWMA is a joint powers authority formed pursuant to California Government Code Section 6500 et seq. to provide solid waste and recycling services to its 11 Member Agencies, including the City of East Palo Alto. Other member agencies include the County of San Mateo, Belmont, Burlingame, Foster City, Hillsborough, Menlo Park, City of San Mateo, Redwood City, San Carlos, and West Bay Sanitation District. SBWMA’s current administrative office has been located at the San Carlos Library for over 16 years. Under the terms of the current lease, SBWMA occupies 2,429 square feet at a monthly rent of $5,618 or $2.31/sf. The current lease term ends on June 30, 2024, and the City of San Carlos has indicated that the term will not be extended because the space is needed to accommodate San Carlos staff.

Upon receiving this notice from the City of San Carlos, SBWMA Executive Director La Mariana began working with a commercial real estate broker to find affordable office space that would accommodate the current staff and agency/public guests, provide proper space for SBWMA Board and Technical Advisory Committee (TAC) meetings, provide easy access to parking for Board and TAC members, be located near public transit to accommodate staff members wishing to utilize this mode of transportation, and be in close proximity to the Shoreway facility in San Carlos.

Dozens of rental properties were researched. This research demonstrated that current market lease rates for properties comparable to the San Carlos library space are currently being leased at $4.50-$6.50 per square foot per month. This means that monthly rent for a comparable space would be $10,931-$15,789. A number of rental properties were toured and found to be unacceptable due to location; inadequate access to public transit; inadequate or

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lack of parking; unfavorable lease/purchase rates; lack of building amenities; poor functionality of available workspace; inadequate building/workspace finishes (ADA access/compliance/lack of elevator); distance from the Shoreway Environmental Center facility; deferred maintenance on critical base building systems (i.e., HVAC, electric, plumbing, mechanical, lighting); and non-code compliance with Title 24 and ADA requirements.

In addition to his search of the commercial office rental market, the Executive Director also contacted staff at all Member Agencies to inquire whether they might have suitable available space for long-term leasing within the given mandatory relocation time frame. No sites were identified.

The Executive Director also identified one property currently for sale in the Wheeler Plaza development, located at 1245 San Carlos Avenue, Suite E, in San Carlos (the “Property”).

This is the last remaining commercial space for sale in the Wheeler Plaza development (Attachment 2).

The Property is a Commercial Condominium located directly across the street from the SAMTRANS Building’s main entrance. It is currently zoned MU-DC (Mixed Use-Downtown Core). Zoning clearance for use of the space by SBWMA was issued by the City of San Carlos on May 18, 2023. (See Attachment 3)
The unit is approximately 2,841 square feet in size and is currently an empty shell which would provide adequate space for all SBWMA administrative functions and could be improved to include a large conference room to accommodate Board and TAC meetings along with some community environmental education sessions. The Property has two dedicated parking spaces (below ground) and easy access to the attached 252-space public parking at the adjacent Wheeler Plaza parking garage (no charge), the adjacent 30-space Laurel Street parking lot (600 block), and adjacent neighborhood surface streets. The Property is listed for sale at $1,988,000.

SBWMA had a cost analysis prepared by Rick Simonson of HF&H Consulting by to determine whether purchasing the Property and having the Property improved to meet SBWMA’s needs would be more cost efficient that entering into a lease for office space. Mr. Simonson concluded that the purchase would be most cost-effective option. Specifically, a 25% cost saving (or $1,416,098) when comparing a total purchase and tenant improvement budget of $2.5 million to a long-term lease based on current office market lease rates (Attachment 4).The SBWMA Board met in closed session at its April, May and June 2023 regular meetings to discuss whether to direct staff to pursue further rental options or to offer to purchase the Property. At the conclusion of its June 2023 discussion, the Board authorized the Executive Director to make an offer to purchase the Property. The seller has agreed to a sale of the Property pursuant to the following summary of terms:

Purchase Price: $1,700,000.

Due diligence period: Up to 60 days from agreement execution (this is the period in which SBWMA conducts its due diligence, architectural studies, finance options, etc., and in which SBWMA can
back out of the sale and get its deposit refunded).

Agency contingency: Obtain no less than 2/3 of member agency approvals within

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105 days.

Loan to value: Up to 75%.

Deposit: $50,000.

Close of Escrow: No later than 11/15/2023.

Analysis
This item has been placed on the agenda for review and approval because, as noted in the offer’s contingencies, a purchase of real property by SBWMA must be approved by 2/3 of the Member Agencies pursuant to The Second Amended and Restated Joint Powers Agreement Article 7, Powers.

Having considered the option to rent other available office properties or to purchase the Property, the SBWMA Board recommends to the Member Agencies that the purchase of the Property be approved for two reasons. First, the Property meets all the identified criteria regarding location and space. Second, as demonstrated by the Cost Analysis of Offer to Purchase Versus Lease prepared by Rick Simonson, acquisition of the Property would be the most cost-effective approach.

Conclusion
The SBWMA Board recommends that the various City Councils and Boards approve the purchase of the Property for use as administrative offices for SBWMA. Upon receiving approval of 2/3 of the Member Agencies and satisfaction of all other contingencies, the SBWMA Board will, in open session, authorize closing of escrow and purchase the Property.

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

Attachments

1. Resolution

2. Property Brochure

3. Zoning Clearance

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4. HFH Cost Analysis

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1 of 3
RESOLUTION NO. x

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
APPROVING THE ACQUISITION OF REAL PROPERTY LOCATED AT 1245 SAN CARLOS

AVENUE, SUITE E, SAN CARLOS, CALIFORNIA BY THE SOUTH BAYSIDE WASTE

MANAGEMENT AUTHORITY
WHEREAS, the South Bayside Waste Management Authority (SBWMA) is a Joint Powers Authority formed to provide recycling and solid waste collection services to its eleven member agencies; and
WHEREAS, the City of East Palo Alto is a member agency of the SBWMA; and WHEREAS, SBWMA’s administrative offices are currently located in the San Carlos Library building through a lease that will expire June 30, 2024 and the City of San Carlos has indicated that it does not wish to renew the lease; and
WHEREAS, SBWMA staff conducted a broad search for office space to lease for its administrative offices once its current office lease expires but did not find space that suited its needs; and
WHEREAS, a new, unfinished commercial unit located at 1245 San Carlos Avenue, Suite E, San Carlos, California (the Property), which is approximately one block from SBWMA’s existing office, is currently listed for sale; and
WHEREAS, SBWMA had a cost analysis prepared by HF&H Consulting by to determine whether purchasing the Property and having the Property improved to meet SBWMA’s needs would be more cost efficient than entering into a lease for office space; and WHEREAS, the cost analysis conducted by HF&H Consulting determined that purchasing the Property and making necessary improvements on an assumed total budget of $2.5 million will result in a 39% cost savings versus entering into a long-term lease for office space at current market rates; and WHEREAS, the SBWMA Board directed SBWMA staff to submit an offer to purchase the Property, contingent upon approval by no less than 2/3 of the member agencies; and WHEREAS, pursuant to the signed Purchase Agreement, the seller of the Property has agreed to sell the property for a purchase price of $1.7 million, which is an amount consistent with the authorization given by the SBWMA Board of Directors; and WHEREAS, Article 7, Section 7.1.1(a) of the Second Amended and Restated Joint Exercise of Powers Agreement for the SBWMA requires that the acquisition of real property be approved by no less than 2/3 of the member agencies; and
WHEREAS, the City of East Palo Alto City Council agrees with the recommendation of the SBWMA Board to purchase the property for use as the SBWMA’s administrative offices.

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Attachment: Resolution (2763 : South Bayside Waste Management Authority (SBWMA) Property Acquisition) 2 of 3

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 this reference into this action; and

2. Approves the acquisition by the SBWMA of the real property located at 1245 San Carlos Avenue, Suite E, San Carlos, California, pursuant to the terms of the Purchase Agreement.

PASSED AND ADOPTED this 5
th day of September 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: Resolution (2763 : South Bayside Waste Management Authority (SBWMA) Property Acquisition) This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

FOR SALE unit pricing below
SUITE A & B (Sold)
SUITE C: (Sold)
SUITE D: (Sold)
SUITE E: $1,988,000
UNIT E has ±2,841 RSF
MONTHLY ASSOCIATION FEE:
$.14 PSF/month estimated
ON-SITE parking open to the public
OUTSIDE seating possible
RESERVED and secure onsite parking
for employees
18-20 FOOT ceiling height
“WALKER’S PARADISE” walk score of
91 on WalkScore.com
1 BLOCK to the San Carlos
Caltrain station
1245 San Carlos Ave

SAN CARLOS, CA

FOR SALE
Retail/Commercial Condominium
Units in Downtown San Carlos

BRETT WEBER
650.771.3000
[email protected]
LIC N° 00901454
KIDDER.COM

STEVE DIVNEY
650.400.8065
[email protected]
LIC N° 01216239

JOHN MCLELLAN
415.418.9880
[email protected]
LIC N° 01869489
ONLY 1

UNIT LEFT

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Attachment: Property Brochure (2763 : South Bayside Waste Management Authority (SBWMA) Property Acquisition) This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

KIDDER.COM

SAN CARLOS, CA

FOR SALE
1245 San Carlos Ave
Floorplan

BRETT WEBER
650.771.3000
[email protected]
LIC N° 00901454

STEVE DIVNEY
650.400.8065
[email protected]
LIC N° 01216239

UNITS CAN BE COMBINED

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Attachment: Property Brochure (2763 : South Bayside Waste Management Authority (SBWMA) Property Acquisition) This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

KIDDER.COM

SAN CARLOS, CA

FOR SALE
1245 San Carlos Ave

BRETT WEBER
650.771.3000
[email protected]
LIC N° 00901454

STEVE DIVNEY
650.400.8065
[email protected]
LIC N° 01216239

JOHN MCLELLAN
415.418.9880
[email protected]
LIC N° 01869489

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Attachment: Property Brochure (2763 : South Bayside Waste Management Authority (SBWMA) Property Acquisition) This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

KIDDER.COM

SAN CARLOS, CA

FOR SALE
1245 San Carlos Ave

BRETT WEBER
650.771.3000
[email protected]
LIC N° 00901454

STEVE DIVNEY
650.400.8065
[email protected]
LIC N° 01216239

JOHN MCLELLAN
415.418.9880
[email protected]
LIC N° 01869489

DOWNTOWN

SAN CARLOS

PASTRAMI - BURGERS
JOHNSTON’S SALTBOX

MEDITERRANEAN
DELITE

CALTRAIN
San Carlos

SUBJECT

PROJECT

EL CAMINO REAL

INDUSTRIAL RD

BAYSHORE FWY

BRITTAN AVE

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Attachment: Property Brochure (2763 : South Bayside Waste Management Authority (SBWMA) Property Acquisition)

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Attachment: Zoning Clearance (2763 : South Bayside Waste Management Authority (SBWMA) Property Acquisition) Managing Tomorrow’s Resources Today
590 Ygnacio Valley Rd, Suite 105 Robert D. Hilton, Emeritus Walnut Creek, California 94596 John W. Farnkopf, PE
Telephone: 925/977-6950 Laith B. Ezzet, CMC
Fax: 925/977-6955 Richard J. Simonson
www.hfh-consultants.com Marva M. Sheehan, CPA
Robert C. Hilton

MEMORANDUM
To: Joe La Mariana, Executive Director – South Bayside Waste Management Authority From: Rick Simonson, Senior Vice President – HF&H Consultant Date: August 15, 2023 (revises June 7, 2023 memo)
Subject: Cost Analysis of Office Purchase versus Lease
Background
The South Bayside Waste Management Authority’s (SBWMA’s) administrative office is currently located in the City of San Carlos Library. The office has been located in this space for over 16 years. Under the terms of the current lease, SBWMA occupies 2,429 square feet at a monthly rent of $5,618 or $2.31/sf.

The current lease term ends on June 30, 2024 and the City has indicated that the term will not be extended because the space is needed to accommodate San Carlos staff and will no longer be available to the SBWMA.

Since receiving this notice, Executive Director La Mariana has been working with a commercial real estate broker to identify potential alternative spaces. The goal has been to identify an affordable space that will accommodate the current staff and agency/public guests, provide proper space for Board and TAC meetings, have easy access to parking for Board and Technical Advisory Committee (TAC) members, be located near public transit, and be in close/immediate proximity to the Shoreway Facility. With these factors in mind, the Executive Director La Mariana has researched and toured many local properties that are currently available for rent and one property that is currently for sale.

Executive Director La Mariana has toured a property, currently for sale, at 1245 San Carlos Avenue, Suite E, in San Carlos. In addition, working with a commercial real estate broker, Executive Director La Mariana has identified a number of properties available to lease that meet the some, but not all, of criteria above.

The current lease rates have been estimated to be between $4.50-$6.50 per square foot in the general San Carlos area.

The following analysis compares the projected costs, over a 30-year period, of purchasing the available property versus leasing a property of the same size; the specific property is unknown at this time. An Excel model was developed to calculate the projected costs over time with a number of assumptions. The model has been constructed to allow multiple scenarios regarding costs and funding terms. This memorandum summarizes one such cost scenario. The model will be available to run additional scenarios at any upcoming meetings.

Cost Analysis of 1245 San Carlos Avenue Property
Executive Director La Mariana’s discussions with the real estate broker has identified a commercial suite located at 1245 San Carlos Avenue, Suite E, which is 2,841 square feet with 20-foot ceilings which can

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accommodate adding a second floor and increase the usable space to 3,977 square feet. The expanded space will accommodate existing SBWMA staff workspaces, ADA-compliant restrooms, a kitchen, storage, and a large fully-wired video conference room available to host Board and TAC meetings.

The estimated cost to purchase and make the necessary interior improvements is $2.3 million - $2.5 million. For this analysis we have assumed the high of $2.5 million.

Figure 1 summarizes the cost assumptions used to evaluate the cost-per-square foot procuring, improving, and maintaining the San Carlos Avenue property. Figure 2 summarizes the first-year total cost of the property and the projected cost per square foot ($4.11 per square foot), with additional detail describing the assumptions following Figure 2. Attachment 1 includes a 30-year analysis of projected costs, including the calculation of the present value of the total annual costs of occupying the property over the next 30-years.

Figure 1 – Office Purchase Key Assumptions
Figure 2 – Year 1 Cost Summary
1Lost investment income from use of reserves for
downpayment and upfront bank/broker fees
Size (at purchase) 2,841 square feet
Estimated Size (at buildout) 3,977 square feet
Property Purchase Price $1,700,000 (est. $1.5 - $1.7 million) Plus: Tenant Improvements $800,000
Total Project Cost $2,500,000
Downpayment 30% ($750,000)
Total Loan Amount $1,750,000
Loan Term for Pymt Calc 30 years
Amortization 25 years
Balloon Payment $551,295 due @ Year 25
Interest Rate 6.19%
Payments per Year 12
Bank Fee 0.50% of loan amount
Broker Fee 1.00% of purchase price
Association Fees $0.14 per sq. f t. per month @ size at purchase Association/Utilities Fee escalator 5.00% per year
Reserves Return-on-Investments 2.00% per year
FY 2023-24
Office Purchase Financial Analysis
Loan Repyament $128,482
Bank Fee $8,750
Broker Fee $17,000
Balloon Payment Reserve $16,874
Association Fees $4,773
Utilities (excl. refuse) $6,000
Opportunity Cost1 $14,485
Total $196,364
Build-out Square Footage 3,977.00
$ per sq. ft. per month $4.11

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Loan Repayment, Fees, and Balloon Payment Reserve. One-time loan and broker fees are included in Year 1 only. The estimated annual loan repayment (at the terms included in Figure 1) is repaid over 25 years with a “balloon” payment due in Year 25. For this analysis, we have assumed the SBWMA would reserve 1/25 of the balloon payment each year so the cash is available when due. The calculated annual reserve contribution assumes earned interest on the funds at 2.0% per year. The loan payment terms include a fixed 6.19% interest rate for the first 10 years and adjusted thereafter based on 10-year Treasury plus 2.5%. Our analysis assumes the 6.19% throughout the 25-year term. Actual interest rates may be higher or lower.

Association Fees. Association fees are paid monthly by all property owners (i.e., City of San Carlos, Commercial Owners, and Residential Owners through a Joint Use Agreement). The fees cover common area maintenance, insurance, window washing, natural gas, water, sewer, and refuse. In addition, a portion of the fees are set aside in reserves for future capital repairs and maintenance (e.g., building exterior repair and paint, roofs). In total, the five commercial suites are allocated 4.84% of Joint Maintenance Costs. The $0.14 per square foot is based on recent budgeted expenses and reserve contributions. The analysis assumes a 5% annual increase, which may vary from the actual annual changes. Unexpected capital needs may arise which shall be assessed to all property owners in excess of the current $0.14 per square foot fee.

Utilities. The Association fees cover common area utilities, and the refuse needs for the commercial suites. The current understanding is the SBWMA will be responsible for their water, sewer, and electricity needs for their suite. These have been estimated at $500 per month with a 5% annual escalator for this analysis.

Opportunity Costs. To purchase a property instead of leasing, requires upfront cash outlay for the downpayment and one-time bank/loan fees ($775,750 in total). The SBWMA has reserves available to make these upfront payments. This analysis includes a “cost” component for the purchase option to recognize the loss of investment income that would otherwise be earned if the cash was continued to be held in reserves. For this analysis, we have assumed the cost of purchasing the property includes the annual loss of investment income at 2.0% per year on the $775,750 withdrawal from reserves, based on recent historical return-on-investments experienced by the SBWMA.

Cost Analysis of Leasing a Property
Executive Director La Mariana, with assistance from a real estate broker researched and toured dozens of rental properties. Currently, for properties that fit the needs of the SBWMA in this targeted geographic area, leases range from $4.50 to $6.50 per square foot per month. Typically, the lease amounts are inclusive of the Common Area Maintenance (CAM) expenses (e.g., water, sewer, refuse, electricity), though the charges are reviewed annually and reconciled for any incremental differences that are passed along (or refunded) to the tenant. For comparison purposes, and to be conservative, we have assumed all CAM-related costs are included in the per square foot lease charge throughout the 30-year period.

Attachment 1 includes a 30-year analysis of projected costs, including the calculation of the present value of the total annual costs of leasing a property over the next 30-years. The analysis assumes the low end

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of $4.50 per square foot per month, escalated 2.0% per year, which is equivalent to approximately $0.10 per square foot each year.

Limitations
The analysis has been prepared with readily available projections and information provided by SBWMA staff, Beale Street Lending, Barc Architecture, and discussions with the 1245 San Carlos property builder, KB Homes. The projections contained herein may change. Additional costs not contemplated in this financial analysis to acquire the San Carlos property may be incurred.

Recommendation
Figure 3 summarizes the comparison of total estimated costs, and average cost per square foot per month, of the two options: 1) purchasing the San Carlos Avenue property and 2) continue leasing available commercial properties, based on the assumptions and projections described in this memo. Based on this financial analysis, the net present value (based on a present value discount rate of 3.0% annually) of the cost to purchase the San Carlos Avenue property is considerably less than leasing property at the low-end of current market rates with a conservation 2% annual increase to market rates. Assuming all costs of purchasing and maintaining the San Carlos Avenue property have been fairly represented, the purchase of the San Carlos Avenue property is recommended. Results may differ if the cost to purchase, finance the property, or other cost factors increase.

Figure 3 – Comparative Summary (detailed analysis provided in Attachment A) Average Cost
30-year Costs per Sq. Ft. per Month
(in 2023$) (in 2023$)
Office Purchase $4,196,716 $2.93
Office Lease $5,612,814 $3.92

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Attachment: HFH Cost Analysis (2763 : South Bayside Waste Management Authority (SBWMA) Property Acquisition)

ATTACHMENT A
Key Assumptions - Office Purchase Key Assumptions - Lease Key Assumptions - GeneralSize (at purchase) 2,841 square feet Size (square feet) 3,977 Present Value Discount Rate 3.0%Estimated Size (at buildout) 3,977 square feet Lease Amount $4.50 per sq. ft. per month (est. ($4.50-$6.50)Property Purchase Price $1,700,000 (est. $1.5 - $1.7 million) Annual Lease Amount $214,758Plus: Tenant Improvements $800,000 Common Area Maint (CAM) incl. in lease water, sewer, electric, refuse, custodial, landscape, etc. (usually part of 1st yr lease amt (baseline), reconciled annually for incremental difference only) Total Project Cost $2,500,000 Lease Inflation Rate 2.00% Downpayment 30% ($750,000)
Total Loan Amount $1,750,000Loan Term for Pymt Calc 30 yearsAmortization 25 yearsBalloon Payment $551,295 due @ Year 25Interest Rate 6.19%Payments per Year 12Bank Fee 0.50% of loan amountBroker Fee 1.00% of purchase priceAssociation Fees $0.14 per sq. ft. per month @ size at purchaseAssociation/Utilities Fee escalator 5.00% per yearReserves Return-on-Investments 2.00% per yearWORKING AREA - Scenarios saved below Office Purchase Financial Analysis FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 FY 2036-37 FY 2037-38 Loan Repyament $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482Bank Fee $8,750Broker Fee $17,000Balloon Payment Reserve $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874Association Fees $4,773 $5,012 $5,262 $5,525 $5,801 $6,092 $6,396 $6,716 $7,052 $7,404 $7,775 $8,163 $8,571 $9,000 $9,450Utilities (excl. refuse) $6,000 $6,300 $6,615 $6,946 $7,293 $7,658 $8,041 $8,443 $8,865 $9,308 $9,773 $10,262 $10,775 $11,314 $11,880Opportunity Cost1 $14,485 $15,805 $16,121 $16,443 $16,772 $17,108 $17,450 $17,799 $18,155 $18,518 $18,888 $19,266 $19,651 $20,044 $20,445 Down Payment $750,000
Total $946,364 $172,473 $173,354 $174,271 $175,223 $176,213 $177,243 $178,314 $179,428 $180,586 $181,792 $183,048 $184,354 $185,714 $187,131 Build-out Square Footage 3,977.00
$ per sq. ft. per month $19.83 $3.61 $3.63 $3.65 $3.67 $3.69 $3.71 $3.74 $3.76 $3.78 $3.81 $3.84 $3.86 $3.89 $3.92 Present Value Discount Factor 1.0000 1.0300 1.0609 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.3842 1.4258 1.4685 1.5126 Present Value of Future Cost $946,364 $167,449 $163,403 $159,482 $155,683 $152,003 $148,438 $144,985 $141,642 $138,404 $135,271 $132,237 $129,302 $126,463 $123,716 30-year Costs (2023$) $4,196,716
Monthly NPV cost per square foot $2.93
Office Purchase Financial Analysis FY 2038-39 FY 2039-40 FY 2040-41 FY 2041-42 FY 2042-43 FY 2043-44 FY 2044-45 FY 2045-46 FY 2046-47 FY 2047-48 FY 2048-49 FY 2049-50 FY 2050-51 FY 2051-52 FY 2052-53 TOTAL Loan Repyament $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $128,482 $3,212,056Bank Fee $8,750Broker Fee $17,000Balloon Payment Reserve $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $16,874 $421,855Association Fees $9,922 $10,419 $10,940 $11,487 $12,061 $12,664 $13,297 $13,962 $14,660 $15,393 $16,163 $16,971 $17,819 $18,710 $19,646 $317,105Utilities (excl. refuse) $12,474 $13,097 $13,752 $14,440 $15,162 $15,920 $16,716 $17,552 $18,429 $19,351 $20,318 $21,334 $22,401 $23,521 $24,697 $398,633Opportunity Cost1 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $20,854 $579,758 Total $188,606 $189,726 $190,902 $192,137 $193,433 $194,794 $196,223 $197,724 $199,300 $200,954 $57,335 $59,159 $61,074 $63,085 $65,197 $4,955,157 Build-out Square Footage
$ per sq. ft. per month $3.95 $3.98 $4.00 $4.03 $4.05 $4.08 $4.11 $4.14 $4.18 $4.21 $1.20 $1.24 $1.28 $1.32 $1.37 Present Value Discount Factor 1.5580 1.6047 1.6528 1.7024 1.7535 1.8061 1.8603 1.9161 1.9736 2.0328 2.0938 2.1566 2.2213 2.2879 2.3566 Present Value of Future Cost $121,059 $118,231 $115,499 $112,860 $110,312 $107,853 $105,480 $103,191 $100,983 $98,856 $27,383 $27,432 $27,495 $27,573 $27,666 1Lost investment income from use of reserves for downpayment and upfront bank/broker feesOffice Lease Financial Analysis FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 FY 2036-37 FY 2037-38 Annual Lease $214,758 $219,053 $223,434 $227,903 $232,461 $237,110 $241,852 $246,689 $251,623 $256,656 $261,789 $267,025 $272,365 $277,812 $283,369CAM ChargesOther Total $214,758 $219,053 $223,434 $227,903 $232,461 $237,110 $241,852 $246,689 $251,623 $256,656 $261,789 $267,025 $272,365 $277,812 $283,369 $ per sq. ft. per month $4.50 $4.59 $4.68 $4.78 $4.87 $4.97 $5.07 $5.17 $5.27 $5.38 $5.49 $5.60 $5.71 $5.82 $5.94 $ change $0.09 $0.09 $0.09 $0.10 $0.10 $0.10 $0.10 $0.10 $0.11 $0.11 $0.11 $0.11 $0.11 $0.12 Present Value Discount Factor 1.0000 1.0300 1.0609 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.3842 1.4258 1.4685 1.5126 Present Value of Future Cost $214,758 $212,673 $210,608 $208,563 $206,539 $204,533 $202,548 $200,581 $198,634 $196,705 $194,795 $192,904 $191,031 $189,177 $187,340 30-year Costs (2023$) $5,612,814
Monthly NPV cost per square foot $3.92
Office Lease Financial Analysis FY 2038-39 FY 2039-40 FY 2040-41 FY 2041-42 FY 2042-43 FY 2043-44 FY 2044-45 FY 2045-46 FY 2046-47 FY 2047-48 FY 2048-49 FY 2049-50 FY 2050-51 FY 2051-52 FY 2052-53 TOTAL Annual Lease $289,036 $294,817 $300,713 $306,727 $312,862 $319,119 $325,501 $332,012 $338,652 $345,425 $352,333 $359,380 $366,568 $373,899 $381,377 $8,712,320CAM Charges $0Other $0 Total $289,036 $294,817 $300,713 $306,727 $312,862 $319,119 $325,501 $332,012 $338,652 $345,425 $352,333 $359,380 $366,568 $373,899 $381,377 $8,712,320 $ per sq. ft. per month $6.06 $6.18 $6.30 $6.43 $6.56 $6.69 $6.82 $6.96 $7.10 $7.24 $7.38 $7.53 $7.68 $7.83 $7.99 $ change $0.12 $0.12 $0.12 $0.13 $0.13 $0.13 $0.13 $0.14 $0.14 $0.14 $0.14 $0.15 $0.15 $0.15 $0.16 Present Value Discount Factor 1.5580 1.6047 1.6528 1.7024 1.7535 1.8061 1.8603 1.9161 1.9736 2.0328 2.0938 2.1566 2.2213 2.2879 2.3566 Present Value of Future Cost $185,521 $183,720 $181,936 $180,170 $178,421 $176,689 $174,973 $173,274 $171,592 $169,926 $168,276 $166,643 $165,025 $163,423 $161,836

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EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 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: Rescind the Water Shortage Emergency Declaration Recommendation
Adopt a resolution:
• Rescinding the declaration of a water shortage emergency adopted by the City Council on June 21, 2022, and declaring that a water shortage condition no longer exists as required by the adopted Water Shortage Contingency Plan • Directing staff to continue implementing water use restrictions consistent with Title 23, Sections 995 and 996(e)(1) of the California Code of Regulations for the duration that this emergency regulation is in effect.

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

Promote Health and Public Safety
Background
On November 23, 2021, the San Francisco Public Utilities Commission declared a water shortage emergency calling for a 10% voluntary reduction from July 2019 to June 2020 levels.

On March 28, 2022, Governor Newsom issued an Executive Order directing the California State Water Resources Control Board and local water agencies to enact shortage response actions consistent with local drought contingency plans. On May 24, 2022, the California State Water Resources Control Board adopted emergency regulations for each urban water supplier that has submitted a water shortage contingency plan to the Department of Water Resources to implement, at a minimum, the shortage response actions adopted under Section 10632 of the Water Code for a shortage level of up to 20% (Level 2) by June 10, 2022. On June 21,

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2022, the City Council declared a water shortage emergency and adopted water use restrictions from Level 2 of the City of East Palo Alto’s Water Shortage Contingency Plan.

After three consecutive dry years, significant rain and snowfall from this past winter have effectively ended the drought in many areas of the state. On March 24, 2023, Governor Newsom rolled back many drought emergency provisions through Executive Order N-5-23 due to current water conditions and maintained other conservation measures that support regions still facing water supply challenges. This executive order:
• Ends the voluntary 15% water conservation target, while continuing to encourage Californians to make conservation a way of life.
• Ends the request that urban water suppliers implement Level 2 of their water shortage contingency plan.
• Maintains the ban on wasteful water uses, such as watering ornamental grass on commercial properties.
• Preserves all current emergency orders focused on groundwater supply, where the effects of the multi-year drought continue to be devastating. • Maintains orders focused on specific watersheds that have not benefited as much from recent rains, including the Klamath River and Colorado River basins, which both remain in drought.
• Retains a state of emergency for all 58 counties to allow for drought response and recovery efforts to continue.

The Governor’s Executive Order N-5-23 does not end the statewide declaration of a water shortage emergency. These executive actions were directed to the State Water Resources Control Board (SWRCB), where the Board adopted these emergency regulations and received approval from the Office of Administrative Law on June 10, 2022. Portions of the drought restrictions, such as the requirement to implement Level 2 demand reduction actions and the ban on irrigating non-functional turf, expired on June 10, 2023.

On April 11, 2023, the San Francisco Public Utilities Commission (SFPUC) unanimously passed an action to rescind their declaration of a local water shortage emergency. While the declaration has been rescinded, there remains a voluntary call for an 11% water use reduction within the San Francisco Regional Water System. The action approved by the SFPUC enables that 11% call to be dropped when the associated SWRCB drought action requirements are eliminated or expire. SWRCB requirements expired on June 10, 2023.

Analysis
Water Supply Update
Water supply conditions in the San Francisco Regional Water System (SFRWS) have drastically improved. As of March 20, 2023, the SFRWS is at 87.2% of total system storage.

For comparison, the median storage level for this day is 80.2%, which is based on historical storage data from years 1991 through 2020.

Water Use Reductions
On November 23, 2021, the San Francisco Public Utilities Commission declared a water

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shortage emergency calling for 10% voluntary reduction from July 2019 to June 2020 levels.

Ongoing Water Restrictions
While Executive Order N-5-23 has cut back many water conservation measures, the following restrictions on wasteful water use are still in effect. • Wasteful and Unreasonable Water Uses per Title 23, Section 995 of the California Code of Regulations – This emergency regulation was readopted in December 2022 and extended until December 21, 2023. Until then, the following actions are still prohibited:
o The application of potable water to outdoor landscapes in a manner that causes more than incidental runoff such that water flows onto adjacent property, nonirrigated areas, private and public walkways, roadways, parking lots, or structures.
o The use of a hose that dispenses water to wash a motor vehicle, except where the hose is fitted with a shut-off nozzle or device attached to it that causes it to cease dispensing water immediately when not in use.
o The use of potable water for washing sidewalks, driveways, buildings, structures, patios, parking lots, or other hard surfaced areas, except in cases where health and safety are at risk.
o The use of potable water for street cleaning or construction site preparation purposes unless no other method can be used or as needed to protect the health and safety of the public.
o The use of potable water for decorative fountains or the filling or topping-off of decorative lakes or ponds, with exceptions for those decorative fountains, lakes, or ponds that use pumps to recirculate water and only require refilling to replace evaporative losses.
o The application of water to irrigate turf and ornamental landscapes during and within 48 hours after measurable rainfall of at least one fourth of one inch of rain. o The use of potable water for irrigation of ornamental turf on public street medians.
o Implementation of local supplier’s Level 2 Water Shortage Contingency Plan and ban on watering non-functional turf at commercial, industrial, and institutional sites per Title 23, Section 996 of the California Code of Regulations – On June 10, 2022, the state prohibited the irrigation of non-functional turf with potable water at commercial, industrial, and institutional areas. “Non-functional turf” is defined as turf that is solely ornamental and not regularly used for human recreational purposes or for civic or community events. Non-functional turf does not include sports fields and turf that is regularly used for human recreational purposes or for community events. Exceptions to this rule include residential lawns, parks, and irrigation as necessary to ensure the health of trees and other perennial non-turf plantings or to the extent necessary to address an immediate health and safety need. This emergency regulatory action expired on June 10, 2023, but it was readopted by the State Water Resources Control Board.

Fiscal Impact
No fiscal impact.

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

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

Attachments

1. Resolution - Rescind the WSCP Level 2 Regulations

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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

RESCINDING THE WATER SHORTAGE EMERGENCY DECLARATION ADOPTED ON JUNE 21, 2022 AND DIRECTING STAFF TO CONTINUE TO IMPLEMENT WATER USE RESTRICTIONS CONSISTENT WITH THE REQUIREMENTS OF TITLE 23, SECTIONS 995 AND 996 OF THE CALIFORNIA CODE OF REGULATIONS FOR THE

DURATION OF THE EMERGENCY REGULATION
WHEREAS, on November 23, 2021, the San Francisco Public Utilities Commission declared a water shortage emergency calling for 10% voluntary reduction from July 2019 to June 2020 levels; and
WHEREAS, on March 28, 2022, Governor Newsom issued an Executive Order directing the California State Water Resources Control Board and local water agencies to enact shortage response actions consistent with local drought contingency plans; and WHEREAS, on May 24, 2022, the California State Water Resources Control Board adopted emergency regulations for each urban water supplier that has submitted a water shortage contingency plan to the Department of Water Resources to implement, at a minimum, the shortage response actions adopted under Section 10632 of the Water Code for a shortage level of up to twenty percent (Level 2) by June 10, 2022; and WHEREAS, on June 21, 2022, the City Council declared a water shortage emergency, and adopted water use restrictions from Level 2 of the City of East Palo Alto’s Water Shortage Contingency Plan; and
WHEREAS, on June 10, 2022, the state prohibited the use of potable water for the irrigation of “non-functional turf” at large commercial, industrial, and institutional sites in Title 23 California Code of Regulations, Section 996(e)(1). “Non-functional turf” is defined as turf that is solely ornamental and not regularly used for human recreational purposes or for civic or community events. Non-functional turf does not include sports fields and turf that is regularly used for human recreational purposes or for civic or community events. Exceptions to this rule include residential lawns, parks, and irrigation as necessary to ensure the health of trees and other perennial non-turf plantings or to the extent necessary to address an immediate health and safety need; and
WHEREAS, on December 21, 2022, the state readopted emergency regulations to prohibit wasteful and unreasonable water uses in Title 23 California Code of Regulations, Section 995; and WHEREAS, after three consecutive dry years, significant rain and snowfall from this past winter have effectively ended the drought in many areas of the state; and WHEREAS, on March 24, 2023, Governor Newsom ended many drought emergency

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provisions through Executive Order N-5-23 due to current water conditions and maintained other conservation measures that support regions still facing water supply challenges; and WHEREAS, on April 11, 2023, the San Francisco Public Utilities Commission unanimously passed an action to rescind their declaration of a local water shortage emergency while maintaining a voluntary call for an 11% water use reduction within the San Francisco Regional Water System.

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 this reference into this action;

2. Declares that a water shortage condition no longer exists in accordance with The City of East Palo Alto’s Water Shortage Contingency Plan; and

3. Direct staff to continue to implement water use restrictions consistent with the requirements of Title 23, Sections 995 and 996 of the California Code of Regulations for the duration of the emergency regulations.

PASSED AND ADOPTED this 5th day of September 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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EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 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: 965 Weeks Emergency Vehicle Access Easement
Recommendation
Authorizing the City Manager to execute the emergency vehicular access easement agreement with MP 965 Weeks Street Associates, L.P, granting an easement over a portion of the Rail Spur Trail.

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

Promote Housing, Economic and Workforce Development
Background
965 Weeks Street, also known as Colibri Commons, is proposed as a residential development of 136 units on a 2.52-acre site. The proposed development, approved by the Planning Commission on December 16, 2019, would be an affordable rental housing development with office spaces for Property Management and Resident Services staff, as well as community amenity spaces.

The project site is owned by the City of East Palo Alto (“City”) and is bordered by the Rail Spur pedestrian/bike path, multi-family residences, a commercial business, vacant land to the north, light industrial uses to the east, Weeks Street/a single-family neighborhood to the south, and commercial uses and a wellness center along Clarke Avenue to the west. The Rail Spur Trail is currently paved for pedestrian and bicycle use.

Analysis
As part of the project’s conditions of approval, the developer is required to obtain approval for

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an emergency vehicle access easement along the Rail Spur Trail from the City of East Palo Alto.

A pedestrian/bicycle and emergency vehicle access connection follows the east property line to provide a connection from Weeks Street to the Rail Spur Trail. Emergency vehicle access would be available from the west driveway and east side pedestrian/bicycle trail through the site from Weeks Avenue to the Rail Spur trail.

As part of the easement agreement, the developer will have access to a portion of the Rail Spur Trail for an emergency vehicle access easement. Moreover, a temporary construction easement will be established along this section during the construction of the project. The developer will be responsible for emergency vehicle access improvement work on the trail and ongoing maintenance and repairs per the agreement (see Attachment 2 for the draft emergency vehicle access easement agreement).

Fiscal Impact
No fiscal impact.

Environmental
The action being considered was a condition of approval of a Design Review project (DR19- 023) which was approved by the Planning Commission on December 16, 2019, and covered by a Mitigated Negative Declaration (MND) that was adopted for the project. Pursuant to the provisions of the California Environmental Quality Act (CEQA), the MND determined that the project will not have a significant effect on the environment given the mitigation measures and mitigation monitory plan included and adopted for the approved project. A Notice of Determination was filed on December 19, 2019 in compliance with Section 21152 of the Public Resources Code for the approval of the project.

Attachments

1. Draft Resolution - 965 Weeks EVA

2. Draft - East palo Alto 965 Weeks Emergency Vehicular Access Easement Colibri

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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

AUTHORIZING THE CITY MANAGER TO EXECUTE AN EMERGENCY VEHICULAR ACCESS EASEMENT AGREEMENT ON THE RAIL SPUR TRAIL FOR THE 965 WEEKS AFFORDABLE

HOUSING DEVELOPMENT PROJECT
WHEREAS, in 2009, the City of East Palo Alto (“City”) Redevelopment Agency purchased the property at 965 Weeks Street (Property) using Low- and Moderate-Income Housing Funds for the purpose of developing affordable housing on the Property; and WHEREAS, on November 8, 2018, the City Council selected the proposal submitted by MidPen Housing Corporation and EPACANDO (jointly, Developer) and directed the City Manager to execute an Exclusive Negotiation Agreement (ENA) with the Developer; and WHEREAS, the Property, also known as Colibri Commons, is proposed as a residential development of 136 units on a 2.52-acre City-owned site; and WHEREAS, as part of the project’s conditions of approval, the developer is required to obtain final approval and agreement with the City for the use of the Rail Spur Trail (“trail”) for an emergency vehicle access easement; and
WHEREAS, as part of the easement agreement, the developer will have access to a portion of the trail for an emergency vehicle access easement and a temporary construction easement will be established during the construction of the project; and WHEREAS, the developer will be responsible for emergency vehicle access improvement work on the trail and ongoing maintenance and repairs per the easement agreement.

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 this reference into this action;

2. Authorizes the City Manager to execute the emergency vehicular access easement agreement with MP 965 Weeks Street Associates, L.P, granting an easement over a portion of the Rail Spur Trail, in a form approved by the City Attorney and substantially similar to Exhibit A; and

3. Finds that the action being considered was a condition of approval of a Design Review project (DR19-023) which was approved by the Planning Commission on December 16, 2019, and covered by a Mitigated Negative Declaration (MND) that was adopted for the project. Pursuant to the provisions of the California Environmental Quality Act (CEQA), the MND determined that the project will not have a significant effect on the environment given the mitigation measures and mitigation monitory plan included and adopted for the approved project. A Notice of Determination was filed on December 19, 2019 in compliance with Section 21152 of the Public Resources Code for the approval of the project

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Attachment: Draft Resolution - 965 Weeks EVA (2744 : 965 Weeks Emergency Vehicle Access Easement) Resolution No. XX-2023 2 of 2
PASSED AND ADOPTED this 5th day of September 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 - 965 Weeks EVA (2744 : 965 Weeks Emergency Vehicle Access Easement) 191.160/536563
551\01\3557515.1
7/1/2023
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RECORDING REQUESTED BY
AND WHEN RECORDED, RETURN TO:

MP 965 Weeks Street Associates, L.P.
c/o MidPen Housing Corporation
303 Vintage Park Dr. Suite 250
Foster City, CA 94404
FOR RECORDER’S USE ONLY
APNs: 063-232-210-3, 063-232-220-2, and 063-232-230-1

EASEMENT AGREEMENT
THIS EASEMENT AGREEMENT (this “Agreement”) is made as of _______________, 2023, by and between the City of East Palo Alto (“Grantor”), and MP 965 Weeks Street Associates, L.P., California limited partnership (“Grantee”), with reference to the following facts:

A. Grantor is the fee owner of certain real property located in the City of East Palo Alto, California, identified as San Mateo County Assessor’s Parcel Numbers 063-232-210-3, 063- 232-220-2, and 063-232-230-1, and more particularly described on Exhibit A attached hereto (the “Grantor Property”). Pursuant to the terms of that certain Disposition, Development and Loan Agreement, dated as of December 15, 2020, by and between Grantor and Grantee, Grantor intends to lease the Grantor Property to Grantee pursuant to a ground lease agreement (“Ground Lease”) and Grantee intends to develop the Grantor Property with approximately one hundred thirty-six (136) units of affordable housing (including one unrestricted manager’s unit) and other onsite improvements, including parking facilities, resident services space and outdoor community space (the “Grantee Project”).

B. Grantor is also the fee owner of certain real property located adjacent to the Grantor Property, in the City of East Palo Alto, California, identified as San Mateo County Assessor’s Parcel Number 063-233-010, and more particularly described on Exhibit B attached hereto (the “Grantor Adjacent Property and, together with the Grantor Property, the “Grantor Properties”), upon which Grantor Adjacent Property is a former rail spur track currently used as a bike and pedestrian trail.

C. In connection with the construction of the Grantee Project, Grantee intends to construct certain improvements on portions of the Grantor Adjacent Property for the purpose of

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facilitating emergency vehicular access to and from the Grantor Property over a portion of the Grantor Adjacent Property (the “Emergency Vehicular Access Improvements”).

D. Subject to the terms of this Agreement, Grantor has agreed to grant to Grantee certain easements over its property, as more fully set forth herein.

NOW, THEREFORE, in consideration of the foregoing, and for good and valuable consideration, the receipt and adequacy of which the parties hereby acknowledge, the parties hereby agree as follows:

1. Grantee Easements.
(a) Subject to terms and conditions of this Agreement, Grantor hereby establishes and grants to Grantee, for the benefit of Grantee, its tenants, subtenants, invitees, agents, employees, contractors, utility and service providers, successors and assigns (collectively, the “Grantee Parties”), and the Grantor Property, the following non-exclusive rights, privileges and appurtenant easements (the “Grantee Easements”):
(i) A non-exclusive right, privilege and appurtenant easement for emergency vehicular access (the “Emergency Vehicular Access Easement”) over that portion of the Grantor Adjacent Property described and depicted in Exhibit C attached hereto (the “Emergency Vehicular Access Easement Area”)
(ii) A temporary non-exclusive right, privilege and appurtenant easement for emergency vehicular access over such portions of the Grantor Adjacent Property as the Grantee Parties may reasonably need to access in order to construct the Emergency Vehicular Access Improvements and/or to construct the Grantee Project (the “Temporary Construction Easement”). The Temporary Construction Easement shall commence as of the date Grantor issues building permits authorizing construction of the Grantee Project and shall terminate on the date the City issues a final certificate of occupancy for the Grantee Project. (b) Limitations. In exercising their rights under the Grantee Easements, the Grantee Parties shall not unreasonably interfere with the use and enjoyment of the Grantor Adjacent Property by Grantor, its tenants, subtenants, invitees, agents, employees, contractors, utility and service providers, successors and assigns and the members of the public(collectively, the “Grantor Parties”).

2. Emergency Vehicular Access Improvements Work
(a) Grantee shall perform all Emergency Vehicular Access Improvements work at its sole cost and expense, in a good and workmanlike manner and in compliance with all applicable laws, and shall cooperate with Grantor to perform such work at such times as to not unreasonably interfere with the use and enjoyment of the Grantor Adjacent Property by the Grantor Parties. Upon the completion of the Emergency Vehicular Access Improvements,

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Grantee shall, at its sole cost and expense, repair any damage to the Grantor Property caused by such work.
(b) Grantee shall keep the Grantor Property free and clear of all liens and other encumbrances arising out of the Emergency Vehicular Access Improvements under this Agreement.

3. Maintenance and Repair Obligations. Grantee shall, at its sole cost and expense, keep and maintain all Emergency Vehicular Access Improvements in good condition and repair.

Additionally, Grantee shall, at its sole cost and expense, repair any damage to the Grantor Adjacent Property caused by the acts or omissions of the Grantee Parties. In the event that Grantee fails to complete any maintenance or repair work set forth in this Section 3 within twenty (20) business days after receipt of a written demand from Grantor, then Grantor may complete such work and Grantee shall reimburse Grantor, on demand, for all reasonable costs incurred by Grantor in connection therewith.

4. Character of Easements. This Agreement shall be recorded by the parties in the Official Records of San Mateo County (the “Official Records”). The Emergency Vehicular Access Easement shall be non-exclusive and perpetual in duration and the Temporary Construction Easement shall terminate as provided herein, unless otherwise terminated by an agreement executed by the Grantor and recorded in the Official Records. All provisions, agreements, rights, powers, covenants, conditions and obligations contained in this Agreement shall constitute covenants running with the land pursuant to Section 1468 of the California Civil Code, as may be amended from time to time, and shall be binding upon and inure to the benefit of the parties, their respective heirs, successors and assigns, and all other persons acquiring all or any portion of any party’s interest in the property described herein whether by sale, operation of law, foreclosure, deed in lieu of foreclosure, or in any manner whatsoever.

5. Grantee Indemnity and Insurance.
(a) To the maximum extent permitted by law, Grantee agrees to indemnify, defend and hold Grantor, its members, officers, employees, contractors, agents, successors and assigns (collectively, the “Grantor Indemnitees”) harmless from and against all losses, actions, demands, damages, claims, costs and expenses (including, but not limited to, expert witness fees and attorneys’ fees, and costs) and liabilities of whatever kind or nature (collectively, “Claims”) arising from or are in any way connected with the activities of the Grantee Parties under this Agreement or the entry on or use of the Grantor Property by the Grantee Parties, except and to the extent resulting from the gross negligence or willful misconduct of any of the Grantor Indemnitees.
(b) Grantor shall not be liable to the Grantee Parties for, and Grantee hereby waives and releases Grantor from, any and all Claims arising from or are in any way connected with the activities of the Grantee Parties under this Agreement or the entry on or use of the Grantor Property by the Grantee Parties, except and to the extent resulting from the gross negligence or willful misconduct of any of the Grantor Indemnitees.

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(c) Grantee shall at all times maintain a public liability and property damage insurance policy in the minimum amount of Two Million Dollars ($2,000,000) per occurrence and Three Million Dollars ($3,000,000) in the general aggregate, insuring against all liabilities of Grantee under this Agreement. Such insurance shall be obtained and maintained with an insurer with a current AM Best’s Rating of at least “A-VIII,” or an equivalent industry rating, shall name Grantor (and, upon the written request of Grantor, any lender or investor limited partner of Grantor) as an additional insured and certificate holder thereunder on a primary, noncontributory basis, and shall include a waiver of subrogation endorsement for the benefit of Grantor (and, if applicable, any lender or investor limited partner of Grantor). At Grantor’s request, Grantee shall provide Grantor with certificate(s) of insurance evidencing Grantee’s compliance with the foregoing insurance requirements.
(d) The provisions of this Section 5 shall survive the expiration or termination of this Agreement.

6. Amendments. This Agreement may be amended or otherwise modified only by a writing signed by Grantor and Grantee and recorded in the Official Records.

7. Default. The failure by a party to perform any covenant or obligation of such party hereunder and to cure such non-performance within thirty (30) days after written notice by the other party shall constitute a default hereunder, provided that if more than thirty (30) days are reasonably required for such cure, no event of default shall occur if the non-performing party commences such cure within such period and diligently prosecutes such cure to completion.

Upon a default the aggrieved party shall be entitled to all remedies, legal and equitable, allowed by law, except termination of the Grantee Easements herein granted. Any cure of a default tendered by a lender or investor limited partner of the defaulting party shall be accepted by the non-defaulting party on the same basis as if tendered by the defaulting party.

8. No Waivers. No failure on the part of a party to this Agreement to enforce any provision hereof with respect to any particular set of facts or circumstances shall be deemed a waiver of the right to enforce that provision or any other provision at a later time or in connection with the same or any other set of facts or circumstances. To be enforceable, any waiver of a party’s rights must be in writing signed by the party waiving such rights.

9. No Merger. The easements and covenants described and created by this Agreement shall not be extinguished by merger of any or all of the ownership interests in any one person or entity.

10. Entire Agreement. This Agreement constitutes the entire agreement between the parties relating to the above easements. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force and effect.

11. No Third-Party Beneficiaries. The provisions of this Agreement are for the exclusive benefit of the parties and their successors and assigns. This Agreement shall not be

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deemed to confer any rights upon members of the public or any person except the parties and their successors and assigns.

12. Attorneys’ Fees. If either party brings an action or proceeding against the other by reason of a default, or otherwise arising out of this Agreement, the prevailing party in such action or proceeding shall be entitled to its costs and expenses of suit, including but not limited to experts’ fees and reasonable attorneys’ fees and costs, which shall be payable whether or not such action is prosecuted to judgment.

13. Notices. Every notice, approval, consent or other communication authorized or required by this instrument shall not be effective unless the same shall be in writing, and it shall be deemed to have been given upon actual receipt or refusal of delivery when deposited postage prepaid in the United States Mail registered or certified, return receipt requested, to the other party at the address below or such address as either party may designate by notice given from time to time in accordance with this paragraph:

To Grantor: City of East Palo Alto
2415 University Avenue
East Palo Alto, CA 94303
Attn: City Manager
To Grantee: MP 965 Weeks Street Associates, L.P.
c/o MidPen Housing Corporation
303 Vintage Park Drive, Suite 250
Foster City, CA 94404
Attn: Assistant Secretary/Senior Project Manager
Email: [email protected]
Email: [email protected]
With a copy to: Wells Fargo Holdings Investments, LLC
420 Montgomery Street, 6th Floor
MAC# A0101-069
San Francisco, CA 94104
Attn: Director of Tax Credit Asset Management
With a copy to: Gubb & Barshay LLP
1835 Montgomery Street, Suite 1110
San Francisco, CA 94104
Attn: Evan Gross
Email: [email protected]
All notices shall be effective on receipt by the addressee and shall be deemed received at the earlier of actual receipt or three (3) business days following mailing.

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Following receipt by a party of a notice from the other party’s investor limited partner requesting to be copied on notices to such other party, the first party shall deliver copies of all notices to such other party to such investor limited party at the address designated by such investor limited partner.

14. Effect of Breach. No breach of any provision of this Agreement shall invalidate the lien of any mortgage made in good faith and for value, but all covenants, conditions and restrictions shall be binding on any owner whose title is derived through foreclosure sale, trustee’s sale, or otherwise.

15. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of California.

16. Miscellaneous.
(a) If any provision hereof shall be held invalid or unenforceable, the remainder hereof shall not be affected thereby, and each provision hereof shall be valid and enforceable to the fullest extent permitted by law.
(b) Time is of the essence with respect to the performance of every provision of this Agreement in which time of performance is a factor. (c) This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one document.

17. Ground Lease. Notwithstanding anything to the contrary set forth in this Agreement, (a) this Agreement shall not be effective unless and until the Grantor and Grantee enter into the Ground Lease, regardless of the full execution or recording of this Agreement; and (b) so long as the Ground Lease is in effect, (i) Grantee shall be solely responsible and liable for, and shall be deemed to have assumed, all obligations under this Agreement.. [Signatures on Following Page]

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IN WITNESS WHEREOF, the undersigned Grantor has executed this Agreement as of the date first set forth above.

GRANTOR:

CITY OF EAST PALO ALTO
By:

Name:

Title:

Approved as to form:

By:

Name:

Title:

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IN WITNESS WHEREOF, the authorized representatives of the undersigned Grantee have executed this Agreement as of the date first set forth above.

GRANTEE:

MP 965 Weeks Street Associates, L.P., a California limited partnership
By: MP CANDO Weeks Street LLC, a California limited
liability company, its general partner
By: MidPen Housing Corporation, a California
nonprofit public benefit corporation, its
manager
By:

Name: Shwetha Subramanian
Title: Assistant Secretary
By: East Palo Alto Community Alliance and
Neighborhood Development Organization, a
California nonprofit public benefit
corporation, its member
By:

Name: Duane Bay
Title: Executive Director
[SIGNATURES MUST BE NOTARIZED]

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State of California )
) ss.

County of ___________________________ )
On __________________________, before me, _____________________________, a Notary Public, personally appeared , who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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State of California )
) ss.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

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EXHIBIT A

LEGAL DESCRIPTION OF GRANTOR PROPERTY
The Grantor Property referred to in this Agreement is situated in the County of San Mateo, City of East Palo Alto, State of California and is described as follows [To be inserted]

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EXHIBIT B

LEGAL DESCRIPTION OF GRANTOR ADJACENT PROPERTY
The Grantor Adjacent Property referred to in this Agreement is situated in the County of San Mateo, City of East Palo Alto, State of California and is described as follows [To be inserted]

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EXHIBIT C

EMERGENCY VEHICULAR ACCESS EASEMENT AREA
[Attached]

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EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Ana Maria Torres, Human Resources Manager
Jessica Caballero, Management Analyst II
Greg Henry, Senior Management Analyst
SUBJECT: Award Agreements with Bolt Staffing, Muchmore than Consulting, LLC & 22nd Century Technologies, Inc for On-Call Administrative and Technical Staffing Support
Recommendation
Adopt a resolution authorizing the City Manager to award, negotiate and execute agreements with Bolt Staffing, Muchmore than Consulting, LLC & 22nd Century Technologies, Inc for OnCall Administrative and Technical Staffing Support, in a form approved by the City Attorney for all three (3) vendors sharing a total not-to-exceed amount of $500,000, and for a term through June 30, 2026.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Ensure our financial and organizational health
Background
Next month, the City will begin onsite training and Enterprise Resource Program (ERP) implementation. Further, the City has experienced long-term vacancies in various positions.

This places tremendous strain on staff, specifically Finance and HR, staff.

Having support staffing on-call will offer several valuable benefits to the City:

1. Immediate Coverage: When a regular administrative staff member is unavailable due to illness, vacation, or unexpected absence, having on-call administrative support ensures that there is no stop in service and essential tasks and responsibilities can still be managed promptly.

2. Operational Continuity: Administrative tasks are often critical for smooth operations.

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On-call administrative staff can step in to maintain operational continuity, ensuring that workflows are not disrupted even when regular staff members are absent.

3. Flexibility: On-call administrative support provides flexibility in managing workforce fluctuations. In particular, the City will be able to surge staff during the ERP implementation to help manage increased workloads effectively.

4. Cost-Efficiency: Hiring full-time administrative staff for occasional vacancies might not be cost-effective. On-call staff can be a more budget-friendly solution, as the City will only pay for the services when needed.

5. Specialized Skills: Some administrative and technical tasks require specialized skills or expertise. On-call staff members can be chosen based on the specific skills required for the task at hand, ensuring that the work is done efficiently and effectively.

6. Reduced Stress and Burnout: Regular administrative staff might experience burnout if they are constantly expected to cover for absent colleagues which also contributes to the high turn-over rate. On-call support can alleviate some of this pressure and contribute to a healthier work environment and work life balance.

7. Enhanced Productivity: With on-call administrative support in place, regular staff can focus on their core responsibilities instead of being stretched thin by additional tasks during staff shortages.

8. Rapid Response: When unexpected situations arise, such as urgent meetings or lastminute events, having on-call administrative staff available allows the organization to respond quickly and professionally.

9. Temporary Needs: Some administrative tasks arise only sporadically or temporarily, such as organizing a conference or managing a special event. On-call staff can be specifically brought in for these periods without the need for long-term commitments.

10.Skill Diversification: On-call staff members might bring diverse skill sets and experiences from various industries or organizations. This can inject fresh perspectives and ideas into the organization's administrative processes.

11.Reduced Training Time: On-call staff can often be chosen based on their prior experience and familiarity with administrative tasks, reducing the time needed for training. Further, by partnering with these firms, the City hopes to have access to the same temporary staff pool over the three-year period, meaning that the same person might be able to return, with limited retraining should a similar staffing need open more than once.

With the anticipated needs for limited term staffing, the City desired a short list of firms contracted with the City under a shared not to exceed of $500,000 and each with a three-year term. The goal is to have multiple firms from which staff can make a staffing request ensuring that the role can be filled quickly.

For these reasons, on May 10, 2023, the City issued a request for proposals (RFP) to provide on-call as needed temporary staffing services for the City’s administrative staff positions. The request was for limited term support (generally 1 to 6 months, though there may be requests for emergency 1 day or 1-week requests). In particular, the City’s administrative staffing positions that were included in the RFP were:

3.6 Packet Pg. 106
· Accountant I/II
· Account Technician I/II
· Administrative Assistant
· Executive Assistant to the City Manager
· Human Resources Analyst
· Human Resources Technician
· Management Analyst I/II
· Office Assistant
· Secretary I/II
· Senior Accounting Technician
· Senior Management Analyst
Proposals were due June 9, 2023. The City received 18 proposals, of which 16 met the minimum conditions for review. From those 16, a group of 6 had the highest match to the City’s requirements. From those 6 a further review was completed with 4 selected for interviews.

Following the interviews staff are proposing 3 firms for Council approval, Bolt Staffing, Muchmore than Consulting, LLC & 22nd Century Technologies, Inc.

Analysis
For the firms that were selected for interviews, their proposals demonstrated the following traits:
· Cost and Value: Because each position was priced separately, while staff reviewed the overall average cost across all positions, each firm was slightly different in cost on the per position basis. All firms selected were competitive on pricing. · Local Presence: Given that much of the City’s staffing needs require staff to be in person, a local presence is required. This in part was considered for the proposed hourly rates. Positions with low hourly rates, but that then required out of state remote work candidates were not rated has highly as firms with local candidates. · Alignment with Requirements: The selected firms demonstrated a clear understanding of the project's requirements and objectives as outlined in the RFP. Their proposals scored highest in terms of meeting the specifications of the RFP. Further, these firms had the highest quality and comprehensiveness of their proposals. A wellstructured and detailed proposal demonstrates the firm's professionalism and commitment.
· Expertise and Experience: The firms selected were required to have candidate pools with experience in working in local municipal governments. Firms that only had light local government experience did not score as high, as working in government for finance and human resources in particular requires specialized knowledge that candidates need to have.
· Technical Competence: These firms were assessed with the highest the technical skills and qualifications of the firm's team members. This helps to ensure that they have the expertise required to execute effectively.
· References and Reputation: The selected firms had the strongest references and

3.6 Packet Pg. 107
reputation in the industry.
· Cultural Fit: The selected firms best matched the City’s cultural. · Legal and Contractual Considerations: All selected firms matched the City’s proposal and align with the legal and contractual requirements outlined in the RFP.

For the interviews, the three approved firms scored highest from all members of the panel. The interviews demonstrated in particular how well the firms communicate and collaborate.

Effective communication is essential for project success. The questions in the interview focused on:
· Having access to a strong local pool of candidates,
· Having flexibility to respond to emergency staffing needs, and · Having strong skills assessments for the pool of candidates.

Fiscal Impact
Administrative staffing augmentation support will either due to position vacancies, and thus use salary savings, or will be for Enterprise Resource Program implementation support for which the City has set aside a specific reserve (in the technology fund).

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

Attachments

1. reso Staff Augmentation

3.6 Packet Pg. 108
Resolution No. XX-2023 1 of 2
RESOLUTION NO.– 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO AWARD, NEGOTIATE AND EXECUTE AGREEMENTS WITH BOLT STAFFING, MUCHMORE THAN CONSULTING, LLC & 22ND CENTURY

TECHNOLOGIES, INC FOR ON-CALL ADMINISTRATIVE AND TECHNICAL STAFFING SUPPORT, IN A FORM APPROVED BY THE CITY ATTORNEY FOR ALL THREE (3) VENDORS SHARING A TOTAL NOT-TO-EXCEED AMOUNT OF $500,000, AND FOR A TERM THROUGH JUNE 30, 2026.

WHEREAS, the City will shortly begin Enterprise Resource Program (ERP) onsite training and implementation, while prolonged vacancies in various positions, particularly within the Finance and HR departments, will place an overwhelming burden on existing staff; and WHEREAS, recognizing the merits of having readily available support staffing, the City stands to reap substantial advantages; and
WHEREAS, it is noteworthy that the City maintains the flexibility to engage with vendors without any imposed obligations concerning future work commitments; and WHEREAS, the City's interactions with vendors for specific staffing requisitions will be guided by a well-structured work order process; and
WHEREAS, on May 10, 2023, the City issued a request for proposals (RFP) to provide on-call as needed temporary staffing services; and
WHEREAS, the stipulated deadline for proposal submissions was June 9, 2023, resulting in the receipt of 18 proposals, 16 of which met the prescribed minimum criteria for further assessment; and WHEREAS, after meticulous evaluation, interviews were conducted with four out of the 16 proposals; and
WHEREAS, following the interview process, City staff determined that Bolt Staffing, Muchmore than Consulting, LLC & 22nd Century Technologies, Inc best met the City’s needs.

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. Authorizes the City Manager to award, negotiate and execute agreements with Bolt Staffing, Muchmore than Consulting, LLC & 22nd Century Technologies, Inc for On-Call Administrative and Technical Staffing Support, in a form approved by the City Attorney for all three (3) vendors sharing a total not-to-exceed amount of $500,000, and for a term through June 30, 2026.

3.6.a
Packet Pg. 109 Attachment: reso Staff Augmentation (2751 : Admin Staff Augmentation Contracts) Resolution No. XX-2023 2 of 2
PASSED AND ADOPTED this 5
th day of September 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

3.6.a
Packet Pg. 110 Attachment: reso Staff Augmentation (2751 : Admin Staff Augmentation Contracts)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Ana Maria Torres, Human Resources Manager
Greg Henry, Senior Management Analyst
SUBJECT: Award Agreements with Regional Government Services (RGS), Muchmore than Consulting, LLC, and CPS HR Consulting for Human Resources Support Recommendation
Adopt a resolution authorizing the City Manager to award, negotiate, and execute agreements with Regional Government Services (RGS), Muchmore than Consulting, LLC, and CPS HR Consulting for as-needed Human Resources Support, in a form approved by the City Attorney, for all three (3) vendors sharing a total not-to-exceed amount of $200,000 and a term through June 30, 2024, with two annual extensions at the City Manager’s discretion.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Ensure our financial and organizational health
Background
HR is running multiple programs that exceed the current staffing capacity in terms of scope and expertise. Hiring HR support services allows the City to quickly boost capacity to run such programs. It also presents a compelling opportunity to significantly enhance operational efficiency within our City. By delegating specialized HR tasks to external experts, we open the door to a vast pool of knowledge and experience, all without straining our internal resources dedicated to core business functions. This strategic approach ensures careful handling of crucial HR activities which will potentially minimize the chances of errors and costly delays.

Moreover, the decision to outsource HR services provides us with access to cutting-edge technology and streamlined processes, translating to quicker task completion and stronger data management. Adopting this approach empowers our City to focus on strategic initiatives and core strengths, fostering an environment of heightened efficiency and improved productivity.

The City’s Human Resource Division support services currently identified are:

3.7 Packet Pg. 111
Leveraging the complex skill sets, knowledge domains, and the ever-evolving availability of our existing and prospective HR personnel, it is clear that bridging potential gaps requires the engagement of specialized contracted experts. In pursuit of this strategy, the City's vision culminates in the curation of a select pool of firms, not to exceed $200,000 annually. This approach aims to proactively address staffing exigencies through a diversified network of contracted entities, ensuring an immediate fulfillment of any support requisites that may arise.

On August 3, 2023, the City took a decisive step forward by issuing a Request for Proposals (RFP) for the provision of HR support services. This step underscores the City's unwavering commitment to optimizing its operational agility.

Proposals were due August 18, 2023. The City received three proposals, all of which met the minimum conditions for review.

Analysis
Staff is proposing all three of the following firms for Council approval: Regional Government Services (RGS), Muchmore than Consulting, LLC, and CPS HR Consulting.

Given the overarching capacity of all three firms to adequately address the comprehensive needs of the City, it became evident that an integrated approach was needed, which took into consideration each firm’s capacity and strengths at time of project assignment. To ensure seamless access and swift fulfillment of these services, the strategy allows HR to submit work requests to all three firms. This dynamic arrangement permits the distribution of tasks across the firms on a per-project basis, a practice that aligns perfectly with the fluid requirements of the City.

Fiscal Impact
For this Fiscal Year, this item does not require additional appropriation as it was included in the HR budget.

Public Notice

3.7 Packet Pg. 112
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Attachments

1. reso Award HR Support Contracts

3.7 Packet Pg. 113
Resolution No. XX-2023 1 of 2
RESOLUTION NO.– 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO AWARD, NEGOTIATE, AND EXECUTE AGREEMENTS

WITH REGIONAL GOVERNMENT SERVICES (RGS), MUCHMORE THAN CONSULTING, LLC,

AND CPS HR CONSULTING FOR AS-NEEDED HUMAN RESOURCES SUPPORT, IN A FORM APPROVED BY THE CITY ATTORNEY, FOR ALL THREE (3) VENDORS SHARING A TOTAL NOT-TO-EXCEED AMOUNT OF $200,000 AND A TERM THROUGH JUNE 30, 2024, WITH TWO ANNUAL EXTENSIONS AT THE CITY MANAGER’S DISCRETION.

WHEREAS, recognizing the City's commitment to operational excellence, the potential to bolster efficiency within our municipality through the engagement of HR support services is evident; and WHEREAS, the prospect of entrusting specialized HR responsibilities to external professionals holds the promise of tapping into a vast reservoir of expertise and insights, alleviating the strain on our internal resources devoted to core municipal operations; and WHEREAS, the acquisition of Human Resource support stands poised to deliver a multitude of invaluable advantages to the City; and
WHEREAS, it is noteworthy that the City maintains the flexibility to engage with vendors without any imposed obligations concerning future work commitments; and WHEREAS, the City's interactions with vendors for specific service requisitions will be guided by a well-structured work order process; and
WHEREAS, on August 3, 2023, the City issued a request for proposals (RFP) to solicit offers to provide Human Resource support; and
WHEREAS, the deadline for proposal submissions was set for the 18th day of August in the year 2023, resulting in the receipt of three highly competitive proposals; and WHEREAS, following review of the proposals, staff determined that Regional Government Services (RGS), Muchmore than Consulting, LLC, and CPS HR Consulting, jointly, could meet the City’s needs.

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. Authorizes the City Manager to award, negotiate, and execute agreements with Regional Government Services (RGS), Muchmore than Consulting, LLC, and CPS HR Consulting for as-needed Human Resources Support, in a form approved by the City Attorney, for all three (3) vendors sharing a total not-to-exceed amount of $200,000 and a term through June 30, 2024, with two annual extensions at the City Manager’s discretion.

3.7.a
Packet Pg. 114 Attachment: reso Award HR Support Contracts (2749 : HR Support Contracts) Resolution No. XX-2023 2 of 2
PASSED AND ADOPTED this 5
th day of September 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

3.7.a
Packet Pg. 115 Attachment: reso Award HR Support Contracts (2749 : HR Support Contracts)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Greg Henry, Senior Management Analyst
SUBJECT: Agreement with Ken Brown Strategic Consulting
Recommendation
Adopt a resolution:

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

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Ensure our financial and organizational health
Background
Ken Brown Strategic Consulting (KSBC) has provided include staffing and expert support in government affairs consulting activities at the Federal level and, from Sacramento firm Nossaman LLP, the State level since 2012. KBSC provides government affairs services, including representation before Congress and federal agencies and strategic consulting to advance the City’s priorities.

More recently, on July 7, 2020, the City Council adopted a Resolution authorizing the City Manager to execute an extension to the retainer agreement with KSBC, for an amount not-toexceed $125,000 for the period of July 1, 2020, through June 30, 2021.

The City Council’s approval accounted for a monthly retainer fee of $8,750 per month, for a total of $105,000 per year, plus reasonable expenses of up to $10,000, and $10,000 to help the City apply for an $8 million grant from the U.S. Economic Development Administration (EDA) to fund critical water infrastructure.

3.8 Packet Pg. 116
On March 2, 2021 the City Council approved an extension to the agreement with KSBC for three additionally years of the retainer agreement and separately as needed grant support activities specifically, due to the need for added capacity to respond to EDA and Prop. 68 opportunities, where the City asked KSBC to draft and submit grant applications on behalf of the City.

Recent highlights of the work KBSC and Nossaman performed for East Palo Alto include:
· Working with the City to include $2 million for water infrastructure improvements in the FY 2024 California state budget. This request was successful and the City will receive these funds.
· Working with the City to include $1.6 million for a new athletic field at the Los RoblesRonald McNair Academy and $850,000 for safety improvements on East Bayshore Road in the FY 2024 House Transportation HUD Appropriations bill. This request is pending approval in the federal budget.
· Working with the City to obtain $1.5 million for the new East Palo Alto Public Library and $800,000 for a water and sewer infrastructure financing plan in FY 2023 Congressional appropriations.
· Working with the City to secure $8 million in the FY 2023 California State budget for the Weeks Street affordable housing development.
· Working with the City to obtain $800,000 to rehabilitate the O’Connor Pump Station and $555,000 to renovate the Cummings Loft in FY 2022 Congressional Appropriations. · Working with the City to secure a $4.4 million grant from the U.S. Economic Development Administration (EDA) to complete the reconstruction of Bay Road, including the stormwater infrastructure components of the project. · Supporting the City’s successful application that received $20 million in Affordable Housing and Sustainable Community funding to build new affordable housing and improve the region’s mass transit system.
· Working with the City and its state legislators to ensure that the state redevelopment agencies legislation (Senate Bill 107) would enable East Palo Alto to receive repayment of $12 million from two previous loans issued to its redevelopment agency. The recovery of this $12 million enabled the City to maintain progress on key priority projects.
· Working with the City to implement an aggressive, proactive strategy to ensure that the $13 million in Congressional earmarks for Bay Road and the University Avenue overpass were not repurposed by Caltrans and the Metropolitan Transportation Commission.
· Maintaining strong relationships key federal agencies (e.g., HUD, the Departments of Justice, Transportation, Labor, Health and Human Services, the EPA, Army Corps, and Economic Development Administration), the White House, and the Washington staff of the City’s Congressional delegation.
· Maintaining strong relationships with key state agencies (e.g., Caltrans, the Department of Water Resources, the Water Resources Control Board, State Infrastructure Bank,

3.8 Packet Pg. 117
Department of Parks and Recreation, and other agencies), the Governor’s office, and the Sacramento staff for the City’s state legislators.
· Monitoring and providing updates on various federal and state legislation of interest to East Palo Alto.

Analysis
This is a critical time for the City of East Palo Alto to maintain strong relationships in both State and Federal contexts, thus positioning the City to take advantage of key initiatives that may be made available. Staff recommends a new agreement with KSBC for the current Fiscal Year at the current annual not to exceed of $155,000. This would match the City Council’s prior approval accounted for a monthly retainer fee of $9,750 per month, for a total of $117,000 per year, plus reasonable expenses of up to $8,000, and $30,000 for other as needed on call services.

Pursuant to East Palo Alto Municipal Code Section 2.84.070(D), Staff are requesting this current year contract be no-bid for the following reasons:
· Urgency and Timeliness: Given that we are already 3-months into the Fiscal Year this is a time-sensitive matter that require immediate attention. In particular the following projects are ongoing and would benefit from the contained support of KBSC and Nossaman in the Fiscal Year:
o Working to ensure funding is maintained for East Palo Alto in the FY 2024 federal appropriations bills.
o Identifying state and federal grant opportunities to support the City’s priorities and helping the City pursue those funding sources.
o Continuing to help East Palo Alto develop and maintain relationships with key officials at the White House, U.S. EPA, HUD, Department of Commerce Economic Development Administration, Department of Justice, Department of Labor, Army Corps of Engineers and other federal agencies, and with the Washington staff of your Congressional delegation.
o Continuing to help the City develop and maintain relationships with key officials at various state agencies, the Governor’s office and the Sacramento staff of your state legislators.
o Organizing in-person or virtual meetings for City leaders with State officials in Sacramento.
o Organizing in-person or virtual meetings for City leaders with Federal officials in Washington, DC in the first quarter of 2024.
o Continuing to monitor and advocate for national and state legislation that will provide opportunities for the City to obtain assistance for its community revitalization priorities, including economic development, brownfields revitalization, infrastructure, violence prevention, and other matters impacting local governments.

As such, this agreement is time-critical and requires swift action, so the City Council should opt for a direct agreement to avoid delays associated with a formal bidding process. · Relationship and Trust: Ken Brown Strategic Consulting has worked with the City since

3.8 Packet Pg. 118
2012 and built significant trust and successful collaborations. · Strategic Importance: Given the City’s need for direct support from the federal and state government, this of significant strategic importance to the city and its development. The City Council should ensure that these are executed in a way that aligns with their vision, which involves working directly with Mr. Brown.

Over the current Fiscal Year, it is the intention of staff to issue a Request for Qualifications (RFQ) and return to the City Council prior to the end of the Fiscal Year for discussion and consideration of the best possible candidate.

Fiscal Impact
This item was budgeted at the previous expected amount of $125,000 in the City Manager's Office budget under the General Fund. The additional $30,0000 will be accounted in the midyear budget amendment either from General Fund budget savings or reserves.

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

Attachments

1. Reso Agreement Ken Brown FY2023-2024

3.8 Packet Pg. 119
Resolution No. XX-2023 1 of 2
RESOLUTION NO.– 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO EXECUTE A RETAINER AGREEMENT WITH KEN BROWN STRATEGIC CONSULTING IN AN AMOUNT NOT TO EXCEED $155,000 FOR THE PERIOD OF JULY 1, 2023 THROUGH JUNE 30, 2024 AND WAVING THE FORMAL BID PROCEDURES UNDER SECTION 2.84.070(D) OF THE MUNICIPAL CODE.

WHEREAS, it is critically important for the City of East Palo Alto (“City”) to protect its welfare by advocating for the City’s interests at the state and federal levels; and WHEREAS, identifying programs and grants the City may qualify for, promoting and advancing legislation that is beneficial to the interests and needs of our City, is critical to continue improving the quality of life of its residents; and
WHEREAS, it is more efficient to contract with a specialized firm that has experience in providing government affairs consulting services; and
WHEREAS, Ken Brown Strategic Consulting (“KSBC”) has proven effective in advancing the interests of the City by obtaining multiple grants for water infrastructure, advocating at the state level to maintain transportation funding for Bay Road and the University Avenue overpass, and securing the repayment of the former City Redevelopment Agency loans; and WHEREAS, the cost of services of KBSC are reasonable despite inflation and expanding services that provides expert support in government affairs consulting activities at the state level.

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. Authorizes the City Manager to negotiate and execute a retainer agreement with Ken Brown Strategic Consulting in an amount not to exceed by $155,000 and a term through June 30, 2024.

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

3.8.a
Packet Pg. 120 Attachment: Reso Agreement Ken Brown FY2023-2024 (2748 : Ken Brown 23-24) Resolution No. XX-2023 2 of 2
PASSED AND ADOPTED this 5
th day of September 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

3.8.a
Packet Pg. 121 Attachment: Reso Agreement Ken Brown FY2023-2024 (2748 : Ken Brown 23-24)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Batool Zaro, Associate Engineer
Anwarbeg Mirza,
Humza Javed, Public Works Director
SUBJECT: Professional Services Contract for Traffic Signals, Streetlights, & RRFB Services Recommendation
Adopt a resolution authorizing the City Manager to execute a professional services contract with Cal-West Lighting & Maintenance, Inc. in a form approved by the City Attorney, in the amount not-to-exceed $80,020 per year for a period of five (5) years to provide maintenance services for the City’s traffic signals, streetlights, and rapid rectangular flashing beacon and emergency services.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
• Enhance Public Safety and Emergency Preparedness
• Improve Public Facilities and Infrastructure
Background
On May 22, 2023, the City of East Palo Alto issued a Request for Proposal (RFP) requesting the services of electrical contracting firms specializing in traffic signal, streetlights; emergency repair; non-emergency routine preventative maintenance as well as unscheduled emergency repairs.

The City currently operates and maintains sixteen (16) traffic signals, approximately nine hundred (900) LED streetlights, and rapid rectangular flashing beacons as well as lighted crosswalks. The City is also required to adequately mark all traffic signal conduit and equipment (Underground Service Alert - "USA") in accordance with California Government Code Section 4216 et seq.

3.9 Packet Pg. 122
The maintenance work may include routine preventive maintenance as well as on-call services to repair equipment due to collision damages, vandalism, and other factors that may result in the need for emergency response maintenance services.

The Traffic Signal, Street Light & Lighting Maintenance contract will be for the period of five (5) years. The City shall notify the Contractor in writing of the intent to extend the contract 30 days prior to the contract expiration date.

Analysis
On May 22, 2023, the City advertised the RFP and reached out to local traffic and electrical firms.

On June 30, 2023, the City received three (3) proposals from the following electrical companies:

1. Cal-West Lighting & Signal Maintenance Inc,

2. Bear Electric Solutions, Inc.

3. St. Francis Electric
No Company City Annual Costs
1 Cal-West Lighting & Signal
Maintenance, Inc
San Jose $30,020.00
2 Bear Electrical Solutions, Inc. Alviso $31,560.00
3 St. Francis Electric, LLC San Leandro $39,224.00
A rating panel comprised of three staff members in the Engineering and Maintenance Division scored the RFP and rated Cal-West Lighting and Signal Maintenance Inc. as the highest rated firm. Cal-West’s proposal amount was also the lowest in the amount of $30,020.00. Cal-West was found to meet all the requirements and forms as indicated on the City's issued RFP.

In addition to the $30,020 base contract amount, staff also recommends awarding an additional amount of $50,000.00 in the contract to cover the costs of repair on an emergency basis to the traffic signal infrastructure caused by potential vehicular accidents, vandalism and other factors.

Hence, the total contract in the amount of $80,020.00 will be divided as follows:

1. Routine Preventive Maintenance Schedule ($30,020); and

2. Unscheduled/Emergency Work Schedule ($50,000).

Fiscal Impact
Staff is requesting additional appropriation from Gas Tax Fund and Ravenwood Lighting District Fund in the amount of $50,000 and $30,020, respectively.

Public Notice

3.9 Packet Pg. 123
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. Calwest Proposal

3. EPA Standard Agreement Contractor and Professional Services Agreement

3.9 Packet Pg. 124
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 AWARD TO AND EXECUTE A CONTRACT AGREEMENT WITH CAL-WEST LIGHTING AND SIGNAL MAINTENANCE INC. IN THE AMOUNT OF $80,020 PER YEAR FOR A PERIOD OF FIVE YEARS TO PROVIDE

MAINTENANCE SERVICES FOR THE CITY'S TRAFFIC SIGNALS, STREET LIGHTS,

AND RAPID RECTANGULAR FLASHING BEACONS
WHEREAS, the City currently operates and maintains sixteen (16) traffic signals, approximately nine hundred (900) LED streetlights, and rapid rectangular flashing beacons as well as lighted crosswalks; and
WHEREAS, the traffic signals, streetlights and other electrical equipment need regular maintenance to minimize malfunctioning; and
WHEREAS, the City also requires services to adequately mark all traffic signal conduit and equipment (Underground Service Alert - "USA") in accordance with California Government Code Section 4216 et seq.; and
WHEREAS, the City also needs traffic signal on-call services to repair equipment damaged due to vehicle collisions, vandalism, and other factors that may result in the need for emergency maintenance services; and
WHEREAS, on May 22, 2023, the City of East Palo Alto issued a Request for Proposal (RFP) requesting the services of electrical firms specializing in traffic signal, street lights, and traffic signal emergency repair work; and
WHEREAS, on June 30, 2023, the City received and scored three (3) proposals; and WHEREAS, Cal-West Lighting and Maintenance Inc. (Cal-West) was the highest rated proposal as well as the lowest cost; and
WHEREAS, in addition to the base contract cost of $30,020 for regular traffic signal maintenance services, an additional amount of $50,000 is recommended to be added to the contract amount for on-call traffic emergency services to repair, on an emergency basis, damages caused by vehicle collisions and vandalism; and
WHEREAS, the Traffic Signal, Street Light & Lighting Maintenance contract with Cal-West is recommended for a total amount of $80,020 per year for a contract term of five (5) years; and WHEREAS, the associated cost of $80,020 will be expended from the State Gas Tax Fund and Ravenswood Lighting District Fund; and

3.9.a
Packet Pg. 125 Attachment: Resolution (2745 : Professional Services Contract for Traffic Signals, Streetlights, & RRFB Services) 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 by this reference into this action; and

2. Authorizes the City Manager to award to and execute an agreement, in a form approved by the City Attorney, with Cal-West Lighting and Signal Maintenance Inc. in the amount not-to-exceed $80,020 per year for a period of five (5) years to provide maintenance services for the City’s traffic signals, streetlights, and rapid rectangular flashing beacon and emergency services.

PASSED AND ADOPTED this 5
th day of September 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

3.9.a
Packet Pg. 126 Attachment: Resolution (2745 : Professional Services Contract for Traffic Signals, Streetlights, & RRFB Services)

3.9.b
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Attachment: Calwest Proposal (2745 : Professional Services Contract for Traffic Signals, Streetlights, & RRFB 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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Packet Pg. 158 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 159 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 160 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 161 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 162 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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: [insert name]
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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Packet Pg. 163 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 164 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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:________________________
Patrick Heisinger
City Manager
DATE:___________
APPROVED AS TO CONTENT:
__________________________
[ Insert Department Head Name ]
[ Insert Department Head Title ]
APPROVED AS TO FORM:

Valerie J. Armento
Interim City Attorney

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Packet Pg. 165 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 166 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 167 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 168 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 169 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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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Packet Pg. 170 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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 selfinsurance 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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Packet Pg. 171 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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.

3.9.c
Packet Pg. 172 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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.

3.9.c
Packet Pg. 173 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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.

3.9.c
Packet Pg. 174 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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

3.9.c
Packet Pg. 175 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic 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

3.9.c
Packet Pg. 176 Attachment: EPA Standard Agreement Contractor and Professional Services Agreement (2745 : Professional Services Contract for Traffic

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Latino/a Culture & History Month
Recommendation
Present the proclamation.

The City Council will present a Latino/a Culture & History Month proclamation.

3.10 Packet Pg. 177

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: National Health Center Week Proclamation
Recommendation
Present the proclamation.

Attachments

1. Proclamation

3.11 Packet Pg. 178

A PROCLAMATION OF THE CITY OF EAST PALO ALTO
PROCLAIMING THE WEEK OF AUGUST 6-12, 2023, AS

NATIONAL HEALTH CENTER WEEK AND CONGRATULATING THE

RAVENSWOOD FAMILY HEALTH NETWORK (RFHN) FOR THEIR

OUTSTANDING WORK IN THE COMMUNITY
WHEREAS, the Ravenswood Health Clinic (RFHN) has been an indispensable pillar of health and wellness, providing comprehensive medical services, preventive care, and health education to the residents of East Palo Alto and its surrounding areas; and
WHEREAS, National Health Center Week serves as an opportune moment to celebrate and acknowledge the significant contributions of community health centers, such as the RFHN, in promoting healthier and happier lives; and
WHEREAS, the City of East Palo Alto recognizes the unwavering dedication and tireless efforts of the healthcare professionals, staff, and volunteers at RFHN in safeguarding the health and well-being of our community members; and
WHEREAS, RFHN has consistently demonstrated its commitment to inclusivity, compassion, and innovation in delivering culturally competent and patient-centered care; and WHEREAS, the City of East Palo Alto recognizes the invaluable role of RFHN in reducing health disparities, fostering community resilience, and enhancing overall quality of life for our residents; and WHEREAS, the mission of RFHN is to improve the health of the community by providing culturally sensitive, integrated primary and preventive health care to all, regardless of ability to pay or immigration status, and collaborating with community partners to address the social determinants of health, and WHEREAS, The Ravenswood Family Health Network Clinic has continued to serve the city of East Palo Alto by providing accessible, affordable healthcare services, disease prevention, education, and by contributing significantly to the overall well-being and health of the East Palo Alto community.

NOW THEREFORE, BE IT RESOLVED THAT, the City Council of East Palo Alto do hereby proclaim August 6-12, 2023, as National Health Center Week in honor of the clinic's exemplary service and positive impact on the well-being of our community and call upon all residents to take part in celebrating and supporting Ravenswood Health Network Clinic during this week of recognition and to extend our deepest gratitude to the healthcare professionals, staff, and volunteers whose dedication continues to inspire and uplift us all.

Dated: August 5, 2023
Lisa Gauthier, Mayor

3.11.a
Packet Pg. 179 Attachment: Proclamation (2755 : National Health Center Week)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Suicide Prevention Month Proclamation
Recommendation
Present the proclamation.

Attachments

1. Proclamation

3.12 Packet Pg. 180

PROCLAMATION OF THE CITY OF EAST PALO ALTO

DESIGNATING THE MONTH OF
SEPTEMBER 2023 AS SUICIDE PREVENTION MONTH
WHEREAS, in 2022, 67 people died by suicide in San Mateo County and 13,525 calls were received by the San Mateo County Crisis Line (run by Star Vista Crisis Center); and WHEREAS, East Palo Alto residents are urged to play a role in supporting each other and preventing suicide by knowing the signs of suicide, finding the words to communicate and reaching out to local 24/7 resources, including our local San Mateo County Crisis Line (run by Star Vista Crisis Center) (call 650-579-0350 or visit sanmateocrisis.org) or 988 Suicide & Crisis Lifeline (call or text 988); and
WHEREAS, the San Mateo County Behavioral Health and Recovery Services Office of Diversity and Equity, Mayors Mental Health Initiative and partners are collectively organizing activities that our community can participate throughout September Suicide Prevention Month, including free in-person and virtual events, advocacy days and communication campaign. The 2023 theme is “Share Hope Together”. Ongoing updates posted at www.SMCHealth.org/SPM.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of East Palo Alto, hereby designates September 2023 as Suicide Prevention Month and calls upon everyone in our community to find their role in suicide prevention.

Dated: September 5, 2023
Lisa Gauthier, Mayor

3.12.a
Packet Pg. 181 Attachment: Proclamation (2754 : Suicide Prevention Month Proclamation)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Recovery Happens Month Proclamation
Recommendation
Present the proclamation.

Attachments

1. Proclamation

3.13 Packet Pg. 182

PROCLAMATION OF THE CITY OF EAST PALO ALTO
DESIGNATING THE MONTH OF SEPTEMBER 2023

RECOVERY HAPPENS MONTH
WHEREAS, the month of September 2023 is National Recovery Month; and WHEREAS, National Recovery Month spreads the positive message that behavioral health is essential to overall health; and
WHEREAS, treatment and prevention providers across the communities of San Mateo County have dedicated themselves to promoting recovery, saving lives, destigmatizing and educating the public about substance use and co-occurring disorders; and
WHEREAS, everyday, the City of East Palo Alto, men, women, and youth enter treatment for substance use and mental health disorders and begin the road to wellness and recovery in a system which emphasizes behavioral health as an essential part of overall health; and WHEREAS, San Mateo County continues to support Recovery Month’s mission to improve the lives of those living with these disorders, to celebrate individuals in recovery and to acknowledge those working to provide integrated recovery services; and
WHEREAS, prevention works, treatment is effective, and recovery is possible; and WHEREAS, people can and do recover!
NOW, THEREFORE, BE IT RESOLVED THAT, the City Council of the City of East Palo Alto does hereby proclaim the month of September 2023 as Recovery Happens Month. Let us all remember that while the road to recovery may be difficult, the benefits of preventing and overcoming substance use and cooccurring disorders are significant and valuable to individuals, families, and communities. Let us remember there are multiple pathways to recovery and let us remember everyone’s journey results in their own unique experience of recovery.

Dated: September 5, 2023
Lisa Gauthier, Mayor

3.13.a
Packet Pg. 183 Attachment: Proclamation (2758 : Recovery Happens Month Proclamation)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
Amy Chen, Community & Economic Development Director
SUBJECT: Special Presentation from the San Francisquito Creek Joint Powers Authority Recommendation
Receive the presentation.

7.1 Packet Pg. 184

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
Amy Chen, Community & Economic Development Director
SUBJECT: Special Presentation Boys and Girls Club of the Peninsula Recommendation
Receive the presentation.

7.2 Packet Pg. 185

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Batool Zaro, Associate Engineer
SUBJECT: Veolia Informational Item
Recommendation
Receive Presentation.

7.3 Packet Pg. 186

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: Approval of San Mateo County Community College District Obligation Recommendation

Background
Redevelopment agencies in California were dissolved effective February 1, 2012 under ABx1 26 enacted June 2011, which were held by the California Supreme Court to be largely constitutional. The Dissolution Statutes were further amended by AB 1484 enacted June 2012, AB 471 enacted February 2014, and SB 107 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.”)
Prior to dissolution, redevelopment agencies often entered into tax sharing contractual agreements with various taxing agencies residing within the redevelopment project areas. The table on the following page summarizes the East Palo Alto’s former Agency contractual agreements for each project area:

Pass Through
Type
University Circle Ravenswood Gateway 101
Contractual Pass
Through
Agreements
Six Agreements
with each of the
four schools, Fire
Five Agreements
with College District,
High School District,
Six Agreements with
Fire District, San
Mateo County,

9.1 Packet Pg. 187
District and Sanitary
District
Fire District,
Mosquito District,
Open Space District
Community College,
High School District,
Elementary School
District, Open Space
District
Under current Dissolution Statutes, the San Mateo County Controller’s Office collects property tax revenues of the former Redevelopment Agency of the City of East Palo Alto (the “Former Agency”) and accounts for and distributes to related taxing agencies the residual property tax available after the payment of contractual and statutory pass-through payments to the taxing entities and payment to the successor agency of funds sufficient to pay the enforceable obligations approved on the recognized obligation payments (i.e., ROPS).

After all administrative costs, statutory and contractual pass-throughs to the taxing entities and enforceable obligations are paid, the remaining property tax is allocated and distributed among the taxing agencies, including the City, in accordance with the Dissolution Statutes. The excess, distributed revenue is often referred to by staff as “excess RPTTF” and is deposited in the respective general revenue funds of the various agencies. Since Dissolution, the obligation accounting and payment process has occurred entirely at the County level; with cursory review of residual distribution calculations performed by Successor Agency staff.

On May 15, 2023, the San Mateo County Community College District (“SMCCCD”) provided the City with a “claim for make whole payments from the East Palo Alto Successor Agency regarding the East Palo Alto University Circle project area”. A brief description of the former Agency contractual agreement (Attachment 2) terms under which the letter was submitted is as follows:

The San Mateo County Community College District (SMCCCD) pass through agreement requires payments equivalent to a taxing agency election under former H&S 33676 (i.e. an amount equal to the District’s share of the inflationary increase in property taxes). In addition, the agreement provides for additional “hold harmless” payments “in the event that the state funding formula for local school districts is changed” such that districts are no longer made “whole” for their respective shares of revenue that would have been received absent the allocation of property taxes to the former redevelopment agency. To receive payment under the hold harmless provisions, districts must submit a written claim prior to the start of the fiscal year for which payment is requested.

SMCCCD school funding changed in 2016 when SMCCD reached the State revenue limit and no longer receives State funding allocations. SMCCD executive staff confirmed they remain in an excess tax funding status for FY 2023-24.

Analysis
Successor Agency staff are aware of the potential for invocation of agreement provisions, but no claims were made until SMCCCD submitted the first claim in FY 2019-20. Section 2.02 of the Agreement states, “The (former) Agency shall approve…those respective amounts due pursuant to this Agreement during each fiscal year”.

9.1 Packet Pg. 188
SMCCD FY 2023-24 calculated make whole is based upon FY 2023-24 assessed valuation of University Circle Redevelopment Project Area. Agency staff calculated and estimated the amounts as follows:

Calculated Estimated TOTAL
UCI CLAIM FY 2022-23 FY 2023-24 FY 2023-24
Per Successor:

Total Increment, net $ 7,622,506 $ 7,030,970
SMCCCD District Share 4.4111%
Calculated Make Whole $ 336,230 $ 310,150
Tax Revenues Distributed as:

Pass Through Payments $ (134,834) $ -
Residual Tax Payments $ (224,201) $ (202,347)
SA Claim Approval $ (22,805) $ 107,803 $ 84,998
As in the prior year, the County Controller requires that the Successor Agency approve the claim before paying SMCCCD the amounts owed under the Agreement. Although postdissolution the Successor Agency no longer administers the payment of amounts owed to the taxing entities, because of the language of the Agreement, the County requires the Successor Agency approve the claim before the County Controller will pay the obligation.

Agency staff recommend the Successor Board approve a SMCCD Claim through negotiated agreement in the amount of $84,998 in accordance with agreement provisions.

Fiscal Impact
There is no direct fiscal impact to the Successor Agency, as the Successor Agency is only entitled to receive the amounts needed to pay enforceable obligations and administrative expenses and the payment to SMCCD does not impact the payment of those amounts.

The payment of the obligation affects available property tax distributions paid to all taxing entities within the University Circle tax rate areas; however, the extent of such is dependent upon a series of calculations comprised of University Circle property tax increment, total former Redevelopment tax increment, total enforceable obligation payments during each six-month ROPS calculation period, total other agency pass-through obligation amounts, and County fees. Each year, Agency staff shall perform an “estimated to actual” calculation and adjust any amounts owed or due to SMCCCD based upon actual distribution results.

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.

9.1 Packet Pg. 189
in direct or indirect changes in the environment.

Attachments

1. Resolution

2. Fomer RDA Resolution No. 34

9.1 Packet Pg. 190
RESOLUTION NO. _____

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 MAXIMUM OF $84,998 CONTRACTUAL PASS-THROUGH

OBLIGATION PAYMENT TO THE SAN MATEO COUNTY COMMUNITY COLLEGE DISTRICT FOR FISCAL YEAR 2023-24
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, on November 28, 1988, the Former Agency adopted Resolution No. 34 approving an agreement with the San Mateo County Community College District titled, “Agreement to Alleviate Financial Burden or Detriment from the East Palo Alto University Circle Redevelopment Project” herein known as “Agreement” and incorporated and attached to this Resolution; and
WHEREAS, in accordance with Article II, Section 2.01 of the Agreement, on March 13, 2021, the San Mateo County Community College District submitted a letter to the San Mateo County Controller’s Office invoking payments of certain amounts as described in Article 1, Section 1.01 and Section 1.02 in the event that the State funding formula for local school districts is changed; and
WHEREAS, in accordance with Article II Section 2.01 of the Agreement, any such claim submitted by San Mateo County Community College District shall be prima facie evidence of financial burden or detriment caused by the former University Circle Redevelopment Project Area; and
WHEREAS, calculated and estimated claim amounts are discharged through Redevelopment Property Tax Trust Fund (“RPTTF”) distributions of excess and available revenues and approved obligation payments herein; and
WHEREAS, the San Mateo County Controller’s Office collects property tax and calculates pass through obligations of the Former Agency in accordance with Dissolution Statutes and applied methodology; and
WHEREAS, San Mateo County has requested the Successor Agency approve the obligation due in accordance with Agreement Article II, Section 2.02, and the calculated amount of $84,998 is the maximum remaining amount due of the total amount of the obligation requested under the Agreement.

9.1.a
Packet Pg. 191 Attachment: Resolution (2757 : Approval of San Mateo County Community College District Obligation)

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

1. Approves the maximum of $84,998 contractual pass-through obligation due to the San Mateo County Community College District in FY 2023-24 pursuant to a former Agency Agreement approved by Resolution No. 34 on November 28, 1988; and

2. Approves of the San Mateo County Controller’s Office including such amount in the calculation of contractual pass-through obligations due to San Mateo County Community College District.

PASSED AND ADOPTED this 5th day of September 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

Lisa Gauthier, Successor Agency Chair
ATTEST:

James Colin
Successor Agency Clerk
APPROVED AS TO FORM:

John D. Lê
Successor Agency Counsel

9.1.a
Packet Pg. 192 Attachment: Resolution (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 193
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 194
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 195
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 196
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 197
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 198
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 199
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 200
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 201
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 202
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

9.1.b
Packet Pg. 203
Attachment: Fomer RDA Resolution No. 34 (2757 : Approval of San Mateo County Community College District Obligation)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Karen Camacho, Housing & Economic Development Manager Amy Chen, Community & Economic Development Director
SUBJECT: TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments
Recommendation

1. Conduct the public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”); and

3. Authorize the Mayor or designee to execute the Joint Exercise of Powers Agreement with the CMFA.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Promote Housing, Economic and Workforce Development

11.1 Packet Pg. 204
Background
Colibri Commons Affordable Housing Project
Colibri Commons is an affordable housing development project at the 2.52-acre property at 965 Weeks Street with 135 units ranging from 30% to 60% Area Median Income (AMI) and one manager unit that will be developed by the Borrower.

The Borrower, has requested that the California Municipal Finance Authority (CMFA) undertake a plan of finance, including the issuance of revenue bonds in the maximum principal amount of $75,000,000 (the “Bonds”), to finance and refinance (1) the costs of the acquisition, development, construction and equipping of a 136-unit qualified residential rental project (the “Project”) to be located at 965 Weeks Street, on a site generally situated east of Clarke Avenue, south of Bay Road and west of Pulgas Avenue, within the city of East Palo Alto, California, and to be owned and operated by the Borrower; and (2) pay certain expenses in connection with the issuance of the Bonds.

In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of East Palo Alto (the “City”) must conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

Analysis
The City of East Palo Alto (“City”) must conduct a TEFRA Hearing in connection with the proposed issuance of a revenue note by the California Municipal Finance Authority (the “CMFA”), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $75,000,000, (the “Bonds”), to finance and refinance the costs of the acquisition, development, construction and equipping of a 136-unit qualified residential rental project (the “Project”) to be located at 965 Weeks Street, on a site generally situated east of Clarke Avenue, south of Bay Road and west of Pulgas Avenue, within the city of East Palo Alto, California.

The City must also adopt a resolution to become a member of the CMFA and to approve the financing of the Project by the CMFA.

California Municipal Finance Authority
The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities have become members of CMFA.

The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.

11.1 Packet Pg. 205
Execution Of The Joint Exercise Of Powers Agreement
In order for the CMFA to have the authority to serve as the issuer of the bonds for the Project, it is necessary for the City of East Palo Alto to become a member of the CMFA. Attached to this report is a copy of the Joint Exercise of Powers Agreement to be executed by a designated signatory of the City.

The Joint Exercise of Powers Agreement provides that the CMFA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of the CMFA do not constitute debts, liabilities or obligations of the members executing such agreement.

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

There are no costs associated with membership in the CMFA and the City will in no way become exposed to any financial liability by reason of its membership in the CMFA. In addition, participation by the City in the CMFA will not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA Hearing, adopting the required resolution and executing the Joint Exercise of Powers Agreement of the CMFA, no other participation or activity of the City or the City Council with respect to the issuance of the Bonds will be required.

The Joint Exercise of Powers Agreement expressly provides that any member may withdraw from such agreement upon written notice to the Board of Directors of the CMFA. In the case of the proposed bond financing for the Borrower, the City following its execution of the Joint Exercise of Powers Agreement, could, at any time following the issuance of the Bonds, withdraw from the CMFA by providing written notice to the Board of Directors of the CMFA.

Next Steps
At conclusion of the TEFRA Hearing, if staff recommendation is accepted, City staff will execute the Joint Exercise of Powers Agreement of the CMFA, and adopt the resolution in favor of the issuance of the Bonds by the CMFA.

Fiscal Impact
There is no negative fiscal impact to the City. The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of East Palo Alto, it is expected that that a portion of the issuance fee attributable to the City will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City.

11.1 Packet Pg. 206
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available on the City’s website. Per 26 U.S.C § 147 (Internal Revenue Code of 1986), including its implementing regulations, reasonable public notice was also provided in the August 25, 2023 Palo Alto Daily News.

Environmental
In accordance with California Environmental Quality Act (CEQA), a Mitigated Negative Declaration has been prepared with an Initial Study. Prior to approving the DDLA the City Council approved the Mitigated Negative Declaration on December 16, 2019. There have been no changes to the project that would warrant conducting additional environmental review pursuant CEQA guidelines 15162. Accordingly, there were no significant CEQA issues that could not be mitigated to a less than significant level and staff has incorporated conditions of approval and mitigation measures accordingly.

Attachments

1. Resolution

2. CMFA JPA Agreement

11.1 Packet Pg. 207
RESOLUTION NO. _______________

RESOLUTION APPROVING, AUTHORIZING AND DIRECTING

EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT

RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY

AND APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE

OF REVENUE BONDS BY THE AUTHORITY TO FINANCE AND

REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF MP 965 WEEKS STREET ASSOCIATES, L.P., A

CALIFORNIA LIMITED PARTNERSHIP, AND CERTAIN OTHER

MATTERS RELATING THERETO
WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”), certain public agencies (the “Members”) have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”) in order to form the California Municipal Finance Authority (the “Authority”), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and
WHEREAS, City of East Palo Alto (the “City”), has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and WHEREAS, there is now before the City Council of the City of East Palo Alto (the “City Council”) the form of the Agreement; and
WHEREAS, the Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing the construction or rehabilitation of capital projects; and
WHEREAS, MP CANDO Weeks Street, LLC, a California limited liability company (the “General Partner”), an affiliate of MidPen Housing Corporation, a California nonprofit benefit corporation, and East Palo Alto Community Alliance and Neighborhood Development Organization (collectively, the “Sponsor”), on behalf of MP 965 Weeks Street Associates, L.P., a California limited partnership, or another ownership entity to be formed by the General Partner or another affiliate of the Sponsor (such limited partnership or other ownership entity, the “Borrower”), has requested that the Authority undertake a plan of finance, including the issuance of revenue bonds in the maximum principal amount of $75,000,000 (together with a like amount of refunding obligations) (the “Bonds”), to finance and refinance (1) the costs of the acquisition, development, construction and equipping of a 136-unit qualified residential rental project (the “Project”) to be located at

11.1.a
Packet Pg. 208 Attachment: Resolution (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) 965 Weeks Street, on a site generally situated east of Clarke Avenue, south of Bay Road and west of Pulgas Avenue, within the City of East Palo Alto, California (the “City”), and to be owned and operated by the Borrower; and (2) pay certain expenses in connection with the issuance of the Bonds; and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), requires that an “applicable elected representative” of a governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the plan of finance for the Project, including the issuance of the Bonds, and approve such plan of finance following such hearing; and WHEREAS, the Authority has determined that the City Council is an “applicable elected representative” for purposes of holding such hearing; and WHEREAS, the Authority has requested that the City Council approve the plan of finance for the Project, including the issuance of the Bonds by the Authority, in order to satisfy the public approval requirement of Section 147(f) of the Code and, the requirements of Section 4 of the Agreement; and
WHEREAS, notice of such public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the plan of finance for the Project and the Authority’s issuance of the Bonds; and WHEREAS, it is in the public interest and for the public benefit that the City Council approve the plan of finance for the Project, including the issuance of the Bonds by the Authority, for the aforesaid purposes.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, AS
FOLLOWS:

Section 1. The foregoing recitals are true and correct, incorporated by reference into this action.

Section 2. The Agreement is hereby approved and the Mayor, City Manager or the designee thereof is hereby authorized and directed to execute said document, and the City Clerk or such Clerk’s designee is hereby authorized and directed to attest thereto.

Section 3. The City Council hereby approves the plan of finance for the Project, including the issuance of the Bonds by the Authority, to finance and refinance the Project.

It is the purpose and intent of the City Council that this resolution constitute approval of the plan of finance for the Project, including the issuance of the Bonds, (a) by the “applicable elected representative” of a governmental unit having jurisdiction over the area in which the Project is to be located in accordance with Section 147(f) of the Code and (b) by the City Council in accordance with Section 4 of the Agreement.

11.1.a
Packet Pg. 209 Attachment: Resolution (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) Section 4. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.

Section 5. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

Section 6. The Mayor, the City Manager, the Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.

Section 7. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel:

Ronald E. Lee, Esq.

Jones Hall, APLC
475 Sansome Street, Suite 1700
San Francisco, CA 94111
Section 8. This resolution shall take effect immediately upon its passage.

PASSED AND ADOPTED by the City Council of the City of East Palo Alto at a regular meeting of the City Council held on the 5th day of September 2023, by the following vote:

AYES:

NOES:

ABSENT:

11.1.a
Packet Pg. 210 Attachment: Resolution (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) ABSTAIN:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

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

11.1.a
Packet Pg. 211 Attachment: Resolution (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments)

JOINT EXERCISE OF POWERS AGREEMENT

RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY
THIS AGREEMENT, dated as of January 1, 2004, among the parties executing this Agreement (all such parties, except those which have withdrawn as provided herein, are referred to as the “Members” and those parties initially executing this Agreement are referred to as the “Initial Members”):

WITNESSETH
WHEREAS, pursuant to Title 1, Division 7, Chapter 5 of the California Government Code (in effect as of the date hereof and as the same may from time to time be amended or supplemented, the “Joint Exercise of Powers Act”), two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and WHEREAS, each of the Members is a “public agency” as that term is defined in Section 6500 of the Joint Exercise of Powers Act; and
WHEREAS, each of the Members is empowered by law to promote economic, cultural and community development, including, without limitation, the promotion of opportunities for the creation or retention of employment, the stimulation of economic activity, the increase of the tax base, and the promotion of opportunities for education, cultural improvement and public health, safety and general welfare; and
WHEREAS, each of the Members may accomplish the purposes and objectives described in the preceding preamble by various means, including through making grants, loans or providing other financial assistance to governmental and nonprofit organizations; and WHEREAS, each Member is also empowered by law to acquire and dispose of real property for a public purpose; and
WHEREAS, the Joint Exercise of Powers Act authorizes the Members to create a joint exercise of powers entity with the authority to exercise any powers common to the Members, as specified in this Agreement and to exercise the additional powers granted to it in the Joint Exercise of Powers Act and any other applicable provisions of the laws of the State of California; and
WHEREAS, a public entity established pursuant to the Joint Exercise of Powers Act is empowered to issue or execute bonds, notes, commercial paper or any other evidences of indebtedness, including leases or installment sale agreements or certificates of participation therein (herein “Bonds”), and to otherwise undertake financing programs under the Joint Exercise of Powers Act or other applicable provisions of the laws of the State of California to accomplish its public purposes; and

11.1.b
Packet Pg. 212 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) WHEREAS, the Members have determined to specifically authorize a public entity authorized pursuant to the Joint Exercise of Powers Act to issue Bonds pursuant to the Joint Exercise of Powers Act or other applicable provisions of the laws of the State of California; and WHEREAS, it is the desire of the Members to use a public entity established pursuant to the Joint Exercise of Powers Act to undertake the financing and/or refinancing of projects of any nature, including, but not limited to, capital or working capital projects, insurance, liability or retirement programs or facilitating Members use of existing or new financial instruments and mechanisms; and
WHEREAS, it is further the intention of the Members that the projects undertaken will result in significant public benefits to the inhabitants of the jurisdictions of the Members; and WHEREAS, by this Agreement, each Member desires to create and establish the “California Municipal Finance Authority” for the purposes set forth herein and to exercise the powers provided herein;
NOW, THEREFORE, the Members, for and in consideration of the mutual promises and agreements herein contained, do agree as follows:

Section 1. Purpose.

This Agreement is made pursuant to the provisions of the Joint Exercise of Powers Act.

The purpose of this Agreement is to establish a public entity for the joint exercise of powers common to the Members and for the exercise of additional powers given to a joint powers entity under the Joint Powers Act or any other applicable law, including, but not limited to, the issuance of Bonds for any purpose or activity permitted under the Joint Exercise of Powers Act or any other applicable law. Such purpose will be accomplished and said power exercised in the manner hereinafter set forth.

Section 2. Term.

This Agreement shall become effective in accordance with Section 17 as of the date hereof and shall continue in full force and effect until such time as it is terminated in writing by all the Members; provided, however, that this Agreement shall not terminate or be terminated until all Bonds issued or caused to be issued by the Authority (defined below) shall no longer be outstanding under the terms of the indenture, trust agreement or other instrument pursuant to which such Bonds are issued, or unless a successor to the Authority assumes all of the Authority’s debts, liabilities and obligastions.

Section 3. Authority.

A. CREATION AND POWERS OF AUTHORITY.

Pursuant to the Joint Exercise of Powers Act, there is hereby created a public entity to be known as the “California Municipal Finance Authority” (the “Authority”), and said Authority shall be a public entity separate and apart from the Members. Its

11.1.b
Packet Pg. 213 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) debts, liabilities and obligations do not constitute debts, liabilities or obligations of any Members.

B. BOARD.

The Authority shall be administered by the Board of Directors (the “Board,” or the “Directors” and each a “Director”) of the California Foundation for Stronger Communities, a nonprofit public benefit corporation organized under the laws of the State of California (the “Foundation”), with each such Director serving in his or her individual capacity as a Director of the Board. The Board shall be the administering agency of this Agreement and, as such, shall be vested with the powers set forth herein, and shall administer this Agreement in accordance with the purposes and functions provided herein. The number of Directors, the appointment of Directors, alternates and successors, their respective terms of office, and all other provisions relating to the qualification and office of the Directors shall be as provided in the Articles and Bylaws of the Foundation, or by resolution of the Board adopted in accordance with the Bylaws of the Foundation.

All references in this Agreement to any Director shall be deemed to refer to and include the applicable alternate Director, if any, when so acting in place of a regularly appointed Director.

Directors may receive reasonable compensation for serving as such, and shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a Director, if the Board shall determine that such expenses shall be reimbursed and there are unencumbered funds available for such purpose.

The Foundation may be removed as administering agent hereunder and replaced at any time by amendment of this Agreement approved as provided in Section 16; provided that a successor administering agent of this Agreement has been appointed and accepted its duties and responsibilities under this Agreement.

C. OFFICERS; DUTIES; OFFICIAL BONDS.

The officers of the Authority shall be the Chair, Vice-Chair, Secretary and Treasurer (defined below). The Board, in its capacity as administering agent of this Agreement, shall elect a Chair, a Vice-Chair, and a Secretary of the Authority from among Directors to serve until such officer is re-elected or a successor to such office is elected by the Board. The Board shall appoint one or more of its officers or employees to serve as treasurer, auditor, and controller of the Authority (the “Treasurer”) pursuant to Section 6505.6 of the Joint Exercise of Powers Act to serve until such officer is re-elected or a successor to such office is elected by the Board.

Subject to the applicable provisions of any resolution, indenture, trust agreement or other instrument or proceeding authorizing or securing Bonds (each such resolution, indenture, trust agreement, instrument and proceeding being herein referred to as an “Indenture”) providing for a trustee or other fiscal agent, and except as may otherwise be

11.1.b
Packet Pg. 214 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) specified by resolution of the Board, the Treasurer is designated as the depositary of the Authority to have custody of all money of the Authority, from whatever source derived and shall have the powers, duties and responsibilities specified in Sections 6505, 6505.5 and 6509.5 of the Joint Exercise of Powers Act.

The Treasurer of the Authority is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond with the Secretary of the Authority in the amount specified by resolution of the Board but in no event less than $1,000.

The Board shall have the power to appoint such other officers and employees as it may deem necessary and to retain independent counsel, consultants and accountants.

The Board shall have the power, by resolution, to the extent permitted by the Joint Exercise of Power Act or any other applicable law, to delegate any of its functions to one or more of the Directors or officers, employees or agents of the Authority and to cause any of said Directors, officers, employees or agents to take any actions and execute any documents or instruments for and in the name and on behalf of the Board or the Authority.

D. MEETINGS OF THE BOARD.
(1) Ralph M. Brown Act.

All meetings of the Board, including, without limitation, regular, adjourned regular, special, and adjourned special meetings shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the Government Code of the State of California), or any successor legislation hereinafter enacted (the “Brown Act”).
(2) Regular Meetings.

The Board shall provide for its regular meetings; provided, however, it shall hold at least one regular meeting each year. The date, hour and place of the holding of the regular meetings shall be fixed by resolution of the Board. To the extent permitted by the Brown Act, such meetings may be held by telephone conference.
(3) Special Meetings.

Special meetings of the Board may be called in accordance with the provisions of Section 54956 of the Government Code of the State of California. To the extent permitted by the Brown Act, such meetings may be held by telephone conference.

11.1.b
Packet Pg. 215 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) (4) Minutes.

The Secretary of the Authority shall cause to be kept minutes of the regular, adjourned regular, special, and adjourned special meetings of the Board and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Director.
(5) Quorum.

A majority of the Board shall constitute a quorum for the transaction of business. No action may be taken by the Board except upon the affirmative vote of a majority of the Directors constituting a quorum, except that less than a quorum may adjourn a meeting to another time and place.

E. RULES AND REGULATIONS.

The Authority may adopt, from time to time, by resolution of the Board such rules and regulations for the conduct of its meetings and affairs as may be required.

Section 4. Powers.

The Authority shall have the power, in its own name, to exercise the common powers of the Members and to exercise all additional powers given to a joint powers entity under any of the laws of the State of California, including, but not limited to, the Joint Exercise of Powers Act, for any purpose authorized under this Agreement. Such powers shall include the common powers specified in this Agreement and may be exercised in the manner and according to the method provided in this Agreement. The Authority is hereby authorized to do all acts necessary for the exercise of such power, including, but not limited to, any of all of the following: to make and enter into contracts; to employ agents and employees; to acquire, construct, provide for maintenance and operation of, or maintain and operate, any buildings, works or improvements; to acquire, hold or dispose of property wherever located; to incur debts, liabilities or obligations; to receive gifts, contributions and donations of property, funds, services, and other forms of assistance from person, firms, corporations and any governmental entity; to sue and be sued in its own name; to make grants, loans or provide other financial assistance to governmental and nonprofit organizations (e.g., the Members or the Foundation) to accomplish any of its purposes; and generally to do any and all things necessary or convenient to accomplish its purposes.

Without limiting the generality of the foregoing, the Authority may issue or cause to be issued Bonds, and pledge any property or revenues as security to the extent permitted under the Joint Exercise of Powers Act, or any other applicable provision of law; provided, however, the Authority shall not issue Bonds with respect to any project located in the jurisdiction of one or more Members unless the governing body of any such Member, or its duly authorized representative, shall approve, conditionally or unconditionally, the project, including the issuance of Bonds therefor. Such approval may be evidenced by resolution, certificate, order, report or such other means of written approval of such project as may be selected by the Member (or its authorized representative) whose approval is required. No such approval shall be required in

11.1.b
Packet Pg. 216 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) connection with Bonds that refund Bonds previously issued by the Authority and approved by the governing board of a Member.

The manner in which the Authority shall exercise its powers and perform its duties is and shall be subject to the restrictions upon the manner in which a California general law city could exercise such powers and perform such duties. The manner in which the Authority shall exercise its powers and perform its duties shall not be subject to any restrictions applicable to the manner in which any other public agency could exercise such powers or perform such duties, whether such agency is a party to this Agreement or not.

Section 5. Fiscal Year.

For the purposes of this Agreement, the term “Fiscal Year” shall mean the fiscal year as established from time to time by resolution of the Board, being, at the date of this Agreement, the period from July 1 to and including the following June 30, except for the first Fiscal Year which shall be the period from the date of this Agreement to June 30, 2004.

Section 6. Disposition of Assets.

At the end of the term hereof or upon the earlier termination of this Agreement as set forth in Section 2, after payment of all expenses and liabilities of the Authority, all property of the Authority both real and personal shall automatically vest in the Members in the manner and amount determined by the Board in its sole discretion and shall thereafter remain the sole property of the Members; provided, however, that any surplus money on hand shall be returned in proportion to the contributions made by the Members.

Section 7. Bonds.

From time to time the Authority shall issue Bonds, in one or more series, for the purpose of exercising its powers and raising the funds necessary to carry out its purposes under this Agreement.

The services of bond counsel, financing consultants and other consultants and advisors working on the projects and/or their financing shall be used by the Authority. The expenses of the Board shall be paid from the proceeds of the Bonds or any other unencumbered funds of the Authority available for such purpose.

Section 8. Bonds Only Limited and Special Obligations of Authority.

The Bonds, together with the interest and premium, if any, thereon, shall not be deemed to constitute a debt of any Member or pledge of the faith and credit of the Members or the Authority. The Bonds shall be only special obligations of the Authority, and the Authority shall under no circumstances be obligated to pay the Bonds except from revenues and other funds pledged therefor. Neither the Members nor the Authority shall be obligated to pay the principal of, premium, if any, or interest on the Bonds, or other costs incidental thereto, except from the revenues and funds pledged therefor, and neither the faith and credit nor the taxing power of the Members nor the faith and credit of the Authority shall be pledged to the payment of the

11.1.b
Packet Pg. 217 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) principal of, premium, if any, or interest on the Bonds nor shall the Members or the Authority in any manner be obligated to make any appropriation for such payment.

No covenant or agreement contained in any Bond or related document shall be deemed to be a covenant or agreement of any Director, or any officer, employee or agent of the Authority in his or her individual capacity and neither the Board of the Authority nor any Director or officer thereof executing the Bonds shall be liable personally on any Bond or be subject to any personal liability or accountability by reason of the issuance of any Bonds.

Section 9. Accounts and Reports.

All funds of the Authority shall be strictly accounted for. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice and by any provision of any Indenture (to the extent such duties are not assigned to a trustee of Bonds).

The books and records of the Authority shall be open to inspection at all reasonable times by each Member.

The Treasurer of the Authority shall cause an independent audit to be made of the books of accounts and financial records of the Authority by a certified public accountant or public accountant in compliance with the provisions of Section 6505 of the Joint Exercise of Powers Act. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California and shall conform to generally accepted auditing standards. When such an audit of accounts and records is made by a certified public accountant or public accountant, a report thereof shall be filed as a public record with each Member and also with the county auditor of each county in which a Member is located; provided, however, that to the extent permitted by law, the Authority may, instead of filing such report with each Member and such county auditor, elect to post such report as a public record electronically on a website designated by the Authority. Such report if made shall be filed within 12 months of the end of the Fiscal Year or Years under examination.

The Treasurer is hereby directed to report in writing on the first day of July, October, January, and April of each year to the Board and the Members which report shall describe the amount of money held by the Treasurer for the Authority, the amount of receipts since the last such report, and the amount paid out since the last such report (which may exclude amounts held by a trustee or other fiduciary in connection with any Bonds to the extent that such trustee or other fiduciary provided regular reports covering such amounts.) Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants in making an audit pursuant to this Section, shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for that purpose.

In any Fiscal Year the Board may, by resolution adopted by unanimous vote, replace the annual special audit with an audit covering a two-year period.

11.1.b
Packet Pg. 218 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) Section 10. Funds.

Subject to the applicable provisions of any Indenture, which may provide for a trustee or other fiduciary to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds pursuant to the accounting procedures developed under Sections 3.C and 9, and shall make the disbursements required by this Agreement or otherwise necessary to carry out any of the provisions of purposes of this Agreement.

Section 11. Notices.

Notices and other communications hereunder to the Members shall be sufficient if delivered to the clerk of the governing body of each Member; provided, however, that to the extent permitted by law, the Authority may, provide notices and other communications and postings electronically (including, without limitation, through email or by posting to a website).

Section 12. Additional Members/Withdrawal of Members.

Qualifying public agencies may be added as parties to this Agreement and become Members upon: (1) the filing by such public agency with the Authority of an executed counterpart of this Agreement, together with a copy of the resolution of the governing body of such public agency approving this Agreement and the execution and delivery hereof; and (2) adoption of a resolution of the Board approving the addition of such public agency as a Member.

Upon satisfaction of such conditions, the Board shall file such executed counterpart of this Agreement as an amendment hereto, effective upon such filing.

A Member may withdraw from this Agreement upon written notice to the Board; provided, however, that no such withdrawal shall result in the dissolution of the Authority so long as any Bonds remain outstanding. Any such withdrawal shall be effective only upon receipt of the notice of withdrawal by the Board which shall acknowledge receipt of such notice of withdrawal in writing and shall file such notice as an amendment to this Agreement effective upon such filing.

Section 13. Indemnification.

To the full extent permitted by law, the Board may authorize indemnification by the Authority of any person who is or was a Director or an officer, employee of other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a Director or an officer, employee or other agent of the Authority, against expenses, including attorneys fees, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful and, in the case of an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.

11.1.b
Packet Pg. 219 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) Section 14. Contributions and Advances.

Contributions or advances of public funds and of the use of personnel, equipment or property may be made to the Authority by the Members for any of the purposes of this Agreement. Payment of public funds may be made to defray the cost of any such contribution or advance. Any such advance may be made subject to repayment, and in such case shall be repaid, in the manner agreed upon by the Authority and the Member making such advance at the time of such advance. It is mutually understood and agreed to that no Member has any obligation to make advances or contributions to the Authority to provide for the costs and expenses of administration of the Authority, even though any Member may do so. The Members understand and agree that a portion of the funds of the Authority that otherwise may be allocated or distributed to the Members may instead be used to make grants, loans or provide other financial assistance to governmental units and nonprofit organizations (e.g., the Foundation) to accomplish any of the governmental unit’s or nonprofit organization's purposes.

Section 15. Immunities.

All of the privileges and immunities from liabilities, exemptions from laws, ordinances and rules, and other benefits which apply to the activity of officers, agents or employees of Members when performing their respective functions within the territorial limits of their respective public agencies, shall apply to the same degree and extent to the Directors, officers, employees, agents or other representatives of the Authority while engaged in the performance of any of their functions or duties under the provisions of this Agreement.

Section 16. Amendments.

Except as provided in Section 12 above, this Agreement shall not be amended, modified, or altered, unless the negative consent of each of the Members is obtained. To obtain the negative consent of each of the Members, the following negative consent procedure shall be followed: (a) the Authority shall provide each Member with a notice at least sixty (60) days prior to the date such proposed amendment is to become effective explaining the nature of such proposed amendment and this negative consent procedure; (b) the Authority shall provide each Member who did not respond a reminder notice with a notice at least thirty (30) days prior to the date such proposed amendment is to become effective; and (c) if no Member objects to the proposed amendment in writing within sixty (60) days after the initial notice, the proposed amendment shall become effective with respect to all Members.

Section 17. Effectiveness.

This Agreement shall become effective and be in full force and effect and a legal, valid and binding obligation of each of the Members on the date that the Board shall have received from two of the Initial Members an executed counterpart of this Agreement, together with a certified copy of a resolution of the governing body of each such Initial Member approving this Agreement and the execution and delivery hereof.

11.1.b
Packet Pg. 220 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) Section 18. Partial Invalidity.

If any one or more of the terms, provisions, promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, each and all of the remaining terms, provisions, promises, covenants and conditions of this Agreement shall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law.

Section 19. Successors.

This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, no Member may assign any right or obligation hereunder without the consent of the other Members.

Section 20. Miscellaneous.

This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

The section headings herein are for convenience only and are not to be construed as modifying or governing the language in the section referred to.

Wherever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld.

This Agreement shall be governed under the laws of the State of California.

This Agreement is the complete and exclusive statement of the agreement among the Members, which supercedes and merges all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct, between and among the Members relating to the subject matter of this Agreement.

11.1.b
Packet Pg. 221 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments) IN WITNESS WHEREOF, the City of East Palo Alto has caused this Agreement to be executed and attested by its duly authorized representatives as of the ___ day of _____________, 2008.

Member:

CITY OF EAST PALO ALTO
By
Name:

Title:

ATTEST:

By
Name:

Title:

11.1.b
Packet Pg. 222 Attachment: CMFA JPA Agreement (2746 : TEFRA Public Hearing Regarding Conduit Financing for the Colibri Commons Apartments)

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Humza Javed, Public Works Director
SUBJECT: Parking Around City Parks and Facilities
Recommendation

1. Accept staff report on parking regulations and enforcement on public streets in and around City Parks and other City facilities;

2. Provide direction to staff regarding the elements raised in the staff report;

3. Direct staff to return to the City Council with proposed modifications to the City’s parking and enforcement policies on public streets in and around City Parks and other City facilities Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Promote Health and Public Safety
Enhance Community Services and Parks
Background
The City owns and maintains the following parks: Bell Street Park, Jack Farrell Park, Joel Davis Park, and Martin Luther King Junior Park. In addition, the City has other facilities including the Tate Street Office, Cooley Landing, and the Senior Center where at times, members of the community park their motor vehicles.

Parking restrictions vary at the parks and facilities. A detailed description of each park is included below:

Bell Street Park
Bell Street Park does not have a dedicated parking lot. Park users park their motor vehicles at the YMCA parking lot to access this park. This parking lot is owned and maintained by YMCA.

Jack Farrell Park

12.1 Packet Pg. 223
Jack Farrell park does not have a dedicated parking lot. Park users utilize the angled and perpendicular on-street parking on Fordham St. This parking area is maintained by the City of East Palo Alto. Parking in this area has posted signs restricting parking from sunset to sunrise. Parking enforcement is performed by the Police Department.

Joel Davis Park
Joel Davis park does not have a dedicated parking lot. This park is within a residential community and park users utilize on street parking around the park perimeter. The streets are public and are maintained by the City of East Palo Alto. Parking is restricted with posted signs prohibiting overnight parking. These signs are not standard signs and there is no record of an Ordinance or Resolution authorizing these signs. In order for the City to enforce overnight parking, a City Council Resolution would be needed along with signage meeting the standards of the California Manual on Uniform Traffic Devices (CA MUTCD).

Martin Luther King Junior Park
Martin Luther King Junior Park is the only public parks with a dedicated parking lot. The gate remains open during the day starting at sunrise and is closed by staff at sunset. However, there are no other parking restrictions at this parking lot. There is also a public pedestrian gate which is always open for public use.

Cooley Landing, Senior Center, 1960 Tate Street, and 141 Demeter The City facilities at Cooley Landing, Senior Center, the 1960 Tate Street (CEDD & PW offices) and 141 Demeter (Police Station) have parking lots that have “unofficial” parking restrictions.

City Authority
The City has broad powers regulating the parking of vehicles on public streets. This authority comes from the California Vehicle Code sections 22500 et seq.

In particular, section 22507 (a) provides that local authorities may, by ordinance or resolution, prohibit or restrict stopping, parking or standing of vehicles on certain streets or highways or portions of those during all or certain hours of the day. The ordinance or resolution may include a designation of certain streets upon which preferential parking privileges are given to residents and merchants adjacent to the streets for their use and the use of their guests under which the residents and merchants may be issued a permit or permits that exempt them from the prohibition or restriction of the ordinance or resolution.

Section 10.04.030 of the East Palo Alto Municipal Code authorizes designation of restricted parking zones by resolution of the City Council. Whenever this is done, restrictions become effective upon installation by the director of Public Works of appropriate street signs and/or markings giving notice of the restriction.

Ordinance No. 142 adopted in 1992 authorizes the City Council to establish restricted parking zones by resolution. Restrictions are not applicable until signs or markings giving adequate notice have been placed.

There is no adopted resolution regarding the parking restriction around the public streets adjacent to Joel Davis Park. There are also no restrictions in the Declaration of Covenants,

12.1 Packet Pg. 224
Conditions, and Restrictions of University Square (CC&Rs) regarding overnight parking.

Analysis
Parking around City parks and facilities was previously discussed by the City Council on 12/15/22. The City Council directed staff to notify the public and discuss the item at a Public Works and Transportation Commission (PWTC) meeting.

Staff brought the item to the PWTC at the 12/21/22 and 3/15/23 meetings. A summary of the meetings is as follows:
12/21/22 PWTC Meeting
Staff presented the item to the PWTC. There were four public speakers, all who were all in support of the overnight parking restrictions around Joel Davis Park. The theme of comments included consideration of restricting parking at all parks; further review of the uniqueness and parking need at each park and facility; and availability of enforcement resources if restrictions are created.

The PWTC recommended that staff perform additional outreach and return with recommendations for the PWTC review at a subsequent meeting. 3/15/23 PWTC Meeting
Prior to the meeting, City staff reached out to the neighboring homeowners association and mailed 130 notices to residents around Joel Davis Park in advance of the meeting.

Four residents provided feedback at the meeting which included the following comments:
parking restrictions are needed at the parks at night; parking should be restricted from 8 P.M. to 6 A.M. or 12 A.M. to 6 A.M. at the parks; enforcement is needed along with the placement of signage, etc.

Upon discussion, the PWTC recommended the following parking restrictions.

Location Type Time Restriction
Jack Farell Park Street 10 P.M. to 6 A.M. No Parking
Joel Davis Park Street 10 P.M. to 6 A.M. No Parking
MLK Park Parking Lot 10 P.M. to 6 A.M. No Parking
Senior Center Parking Lot 10 P.M. to 6 A.M. No Parking
1960 Tate St Parking Lot 6 P.M. to 6 A.M. City vehicles only Considerations related PWTC Recommendations and Public Comments The Council may desire to have different parking restrictions at different locations based on factors specific to each location. Parking could be restricted based on its intended function, i.e., where parking is being provided and the parking needs thereof. For example, parking at City parks may be restricted in order to discourage park usage and loitering when parks are closed. Additionally, parking at City offices could be restricted to ensure that people do not

12.1 Packet Pg. 225
park vehicles at City offices that would reduce the availability of parking for employees and visitors to those facilities. As mentioned earlier in this report, the City must have the ability to enforce any restrictions it establishes.

Generally, there are three parking environments at City parks and facilities in East Palo Alto:

1. Parking lots at City facilities,

2. Parking lots at City parks, and

3. On-street parking at City parks.

City controlled facilities with parking lots include Cooley Landing, 1960 Tate Street (Public Works and Community and Economic Development departments), 141 Demeter Street and 219 Demeter Street (Police Department), and 150 Tara Street (Public Works Corp Yard). Staff believes that parking at City facilities should be restricted to ensure parking for employees and visitors to have access to the facility. Often, when people park at these facilities during nonbusiness hours, they fail to move their vehicles prior to business hours causing less parking availability for employees and visitors.

Staff recommends that parking at City offices be limited to employees and visitors Mondays at 12 AM through Fridays at 11:59 PM. In the case of Cooley Landing, the City does not have routine office hours; however, parking is currently restricted when the park is closed.

City controlled parks with parking lots include Martin Luther King Junior Park, Bell Street Park (the Senior Center lot is accessible to park users when the Senior Center is closed), and Cooley Landing (discussed above). While Bell Street Park and MLK Jr. Park are in/near residential neighborhoods, the parking lots are intended to be used by persons attending the parks and/or, in the case of Bell Street Park, the facility. According to Section 12.04.110(P) of the East Palo Alto Municipal Code, East Palo Alto Parks are closed from sunset to sunrise.

Considering this closure of parks, staff recommends that the parking lots for parks be closed during hours the parks are closed.

City parks with on-street parking only include Jack Farrell and Joel Davis parks. In the case of Joel Davis Park, the parking lot at 1960 Tate is for City offices, not the park. As mentioned above, the City currently signs posted that prohibit parking in the spaces adjacent to Jack Farrell Park from sunset to sunrise. These are official City signs, and no parking may be enforced. At Joel Davis Park, there are unofficial signs posted that prohibit parking which cannot be enforced. The City may want to prohibit parking at these locations from sunset to sunrise because the parking spaces serve the parks. One reason the Council may not want to limit parking at parks overnight is the need for parking spaces in the residential neighborhoods which most East Palo Alto parks are located. The parking around Joel Davis Park, in particular, is likely used by residents who live in the Peninsula Park Apartments located at 1977 Tate Street across from the park.

To summarize, the City Council has the following locations that it could consider

12.1 Packet Pg. 226
restrictions:

Locations Type
Bell St Park Street/limited parking lot access
Jack Farell Park Street
Joel Davis Park Street
MLK Park Parking Lot
Cooley Landing Parking Lot
Senior Center Parking Lot
1960 Tate St Parking Lot
141 Demeter St Parking Lot
Further, for each location the Council has the following options to consider for those locations:
· Time-Limited Parking: Introduce time-limited parking zones, where vehicles are allowed to park for a maximum duration (e.g., 2 hours) during certain times. This can encourage turnover of parking spaces and discourage long-term parking in high-demand areas. · Pay-and-Display: Implement pay-and-display parking meters, where drivers pay for a parking space and display a receipt on their dashboard. This can help manage parking demand and generate revenue for the city.
· Restricted Hours for Non-Residents: Consider restricting parking during specific hours to only allow vehicles with resident permits or licenses registered within the city. · Restricted Hours for Non-City Marked: Consider restricting parking during specific hours to only allow City vehicles.
· Fully Restricted Hours: Consider restricting parking during specific hours to not allow any parking.

By providing this information to City Council, staff would like to engage in a discussion about current parking regulations and enforcement practices around these parks and City facilities.

Upon direction from City Council, staff intends to return to City Council with a recommendation and draft Resolution for parking restrictions to be implemented at City facilities and parks.

Fiscal Impact
No fiscal impact with the current action.

Environmental
The proposed action does not constitute a “project” with the meaning of the California

12.1 Packet Pg. 227
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.

12.1 Packet Pg. 228

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Batool Zaro, Associate Engineer
Fatima Khan, Consultant
SUBJECT: Draft Community Climate Action Plan and Adaptation Strategies 2030 Recommendation
Adopt a resolution approving the City of East Palo Alto’s Community Climate Action Plan and Adaptation Strategies 2030.

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 Residents
Background
State and Local Climate Policy
To respond to the threat of climate change, different legislation, regulations, and executive orders have been enacted by the State of California to achieve robust greenhouse gas (GHG) emissions reductions while addressing the impacts of a changing climate. In 2006, with the passage of the Global Warming Solutions Act, Assembly Bill (AB) 32, California became the first state in the U.S. to mandate state-wide reductions in GHG emissions as an effort to combat climate change. AB 32 set a state-wide target to reduce GHG emissions to 1990 levels by 2020. In 2016, the enactment of Senate Bill (SB) 32 extended this commitment by raising the state-wide emissions target to 40% below 1990 levels by 2030. Overall, California’s statewide target is to reduce emissions 80% below 1990 levels by 2050.

12.2 Packet Pg. 229
In September 2018, Governor Brown issued California Executive Order B-55-18, setting the goal of achieving carbon neutrality as soon as possible (by 2045 at the latest), and maintaining net negative emissions from that point forward. The following year, the San Mateo County Board of Supervisors committed to achieving carbon neutrality by 2040. The most recent update to the Climate Change Scoping Plan was approved in 2022 and outlines the roadmap to comply with recent state-approved emissions targets which aim to reduce anthropogenic emissions to 85 percent below 1990 levels and achieve carbon neutrality by 2045. There has been recent widespread interest on topics of electrification both nationally and locally. The Bay Area Air Quality Management District (BAAQMD), in order to reduce the amount of toxic and irritating pollutants, namely nitrous oxides in the air, voted in March 2023 to begin an official phaseout of some gas appliances. With some exceptions, this rule would favor electric heating in homes and businesses, and ban most new gas water heaters after 2027, new gas furnaces after 2029, and new large gas water heaters after 2031. In March of 2023, the City of East Palo Alto renewed reach codes mandating electrification and electric charging infrastructure East Palo Alto’s Climate Action Plan
East Palo Alto’s Climate Action Plan (CAP) is a blueprint of the community’s response to challenges posed by climate change. It is a living document reflecting the ongoing efforts and challenges the community faces as climate change impacts grow more frequent, severe, and urgent. The City Council first adopted a CAP in December 2011 with a goal of reducing greenhouse gas emissions by 15%. This CAP matured in 2020, with the 23 actions yielding about 20% reduction in GHG emissions from the City’s baseline year of 2005.

The East Palo Alto Community Climate Action Plan and Adaptation Strategies 2030, hereafter, Draft Plan, is an update to the City’s 2011 CAP. The goal of an updated CAP is to specify strategies the community will utilize to reach the California greenhouse gas (GHG) reduction goals equitably and sustainably, while developing a comprehensive strategy to ensure the community is prepared to adapt to a changing climate to minimize disruptions due to climate change and maximize resilience. This updated Draft Plan emphasizes three key areas to maximize emissions reductions – Energy and Water, Transportation, and Waste.

Draft Plan Outreach
On April 25, 2022, a special presentation of the Draft Plan was shared with the Planning Commission. Since being presented to the Planning Commission on April 25, 2022, the Draft Plan has undergone further review and update and was presented to the Public Works and Transportation Commission for the first time on April 19, 2023; and the Planning Commission for a second time on July 10, 2023.

In addition, the City Council adopted Reach Codes in March 2023 requiring most new commercial and residential buildings be built to an electric standard will aid in the electrification goals the City has set forth in the Draft Plan. The Draft Plan has been shared with other City partners including ReThink Waste, Peninsula Clean Energy, and RINCON consultants, who are assisting the City with emissions reduction metrics and GHG inventories.

The purpose of this staff report is to present the Draft Plan (attachment 2) to the City Council for adoption consideration.

12.2 Packet Pg. 230
Analysis
Much progress has already been made under the current CAP. The City of East Palo Alto, for example, has already exceeded the goals in the 2011 Climate Action Plan. Between 2005 and 2017, the City reduced its emissions by 27,362 metric tons (MT) of carbon dioxide equivalents (CO2e) to achieve 20 percent below 2005 levels, while the goal was 15%. The Draft Plan would further reduce emissions 55% per capita, or about 1.5 mtco2e (metric tons of carbon dioxide equivalent) by the year 2030.

In addition to emissions goals, the Draft Plan proposes adaptation strategies that would support the City and residents in preparing for climate events such as sea level rise and extreme heat.

The following community inventory breakdown offers insight into both the reduction of greenhouse gas emissions that occurred from 2005 to 2017 under the current CAP, as well as the opportunities for further reduction in the coming decade.

The following data offers a breakdown of the community greenhouse gas inventory. The percentages show how much of total emissions each given sector makes up. In East Palo Alto, emissions overwhelmingly originate from transportation, followed by energy use in buildings, first residential and then commercial. Ø 74 Percent: Transportation:
· 51% from travel on state highways
· 18% from travel on local roads
· 5% from off-road equipment, such as lawn, garden, and construction equipment Ø 16 Percent: Residential
Ø 8 Percent: Commercial/ Industrial
Ø 3 Percent: Waste and Wastewater
Ø 0.2% Gas Use (Direct Access-Commercial/ Industrial)
Community Feedback on the Draft Plan
The Draft Plan was presented to the Public Works and Transportation Commission (PWTC) on April 19, 2023. The PWTC requested that furthering access to the Bay Trail, specifically on Tulane road, and installing a National Weather Service Station within the City be considered as Adaptation Strategies. Community Services and Public Works are currently working to open and create more access to the Bay Trail in the coming years. The National Weather Station will be considered as an Adaptation Strategy. The CAP was recommended for approval by City Council unanimously by the PWTC. On July 10, 2023 the Draft Plan was presented to the Planning Commission (PC). The PC emphasized the importance of equity in the electrification strategy. In addition, the PC noted the disproportionate effects climate change had on residents in the City and that adaptation is an important part of climate action, as emissions reductions alone cannot improve the livelihoods of residents in the face of climate events.

Staff will work with community partners to establish guidelines in the equity phase of the Existing Building Electrification Strategy, before electrification efforts commence, to ensure

12.2 Packet Pg. 231
residents are supported during this process. All commissioners present approved a resolution recommending the Draft Plan be adopted by the City Council.

Fiscal Impact
We are not requesting additional appropriation at this time. However, Staff has evaluated the resource impacts across City departments and identified resources needed to implement the Draft Plan for the next 7 years. Some of the actions will be absorbed and integrated into existing departmental operating or project budgets, we anticipate coordination of these programs to be at most .25 FTE of staff time in the Public Works and Community and Economic Development departments. Additional resources needed over the next 7 years includes 0.5 additional full time equivalent staff positions and augmenting the City’s ongoing budget for CAP implementation. Resources allocated to implementing the CAP will be refined and finalized as part of the annual process for budget development and approval by the City Council. In order to begin implementing the Draft Plan, the City will need to add one FTE 2- year contract staff position to Environmental Programs who will serve as the Sustainability Coordinator. The City has budgeted for a Fellow through Sustainability Service Corps to fulfill the first year requirement of this position, with the possibility of extension. The staff member will assist in creating an Implementation Plan to further develop and begin implementing the listed measures and Adaptation Strategies as well as identify and secure sources of funding for CAP projects.

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 is covered by an Addendum to the Initial Study and Negative Declaration which was prepared for the original Climate Action Plan (CAP) and approved by the City Council on September 20, 2011 (and subsequently amended in 2014) in compliance with the requirements of Section 15074 of the State CEQA Guidelines. The Plan is a policy-oriented, programmatic document that describes a series of actions and programs that, when conducted by the City and its partners, can reduce greenhouse gas (GHG) emissions and its effects within the City of East Palo Alto. No significant environmental impacts that would require mitigation were identified. Any development occurring after the adoption of the proposed CAP, including development or expansion of recreational facilities, would be considered a separate “project” and would be subject to individual environmental review as well as compliance with all existing City and State standards (General Plan Land Use and Open Space Elements; General Plan EIR; Zoning Ordinance Chapters 24, 25, and 26; PRC 2100 et seq.).

As a separate and alternative basis, the proposed action is statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15061(b)(3), the general rule that CEQA only applies to actions that have the potential to cause a significant impact, and Section 15308 because it assures the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.

Attachments

12.2 Packet Pg. 232

1. Resolution - CAP

2. Draft EPA 2030 Community CAP and Adaptation Strategies (3)

3. CAP 2030 Addendum

12.2 Packet Pg. 233
Vv
RESOLUTION NO. XX – 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
ADOPTING THE CITY OF EAST PALO ALTO’S COMMUNITY CLIMATE ACTION PLAN AND ADAPTATION STRATEGIES 2030
WHEREAS, the California Ocean Protection Council recommends vulnerable communities prepare for the effects of climate change and sea level rise; and WHEREAS, the City of East Palo Alto has met and exceeded the emissions targets outlined in the 2011 Climate Action Plan; and
WHEREAS, the state of California, in 2022, adopted AB 1279, which codifies the achievement of a statewide carbon neutrality goal as soon as possible, and no later than 2045, and establishes an 85% emissions reduction target as part of that goal; and WHEREAS, the state of California, in 2022, adopted SB 1020, which creates clean electricity targets of 90% by 2035, 95% by 2045, with the intent of 100% clean electricity retail sales by 2045; and WHEREAS, on April 19, 2023, a special presentation of the Draft 2030 Climate Action Plan was given to the City of East Palo Alto’s Public Works and Transportation Commission (PWTC) and the PWTC recommended the Plan for adoption by City Council; and WHEREAS, on July 10, 2023, a special presentation of the Draft 2030 Climate Action Plan was given to the City of East Palo Alto’s Planning Commission and a resolution was passed recommending the Plan for adoption by City Council.

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 this reference into this action;

2. Approves the Community Climate Action Plan and Adaptation Strategies 2030, as amended; and

3. Finds that the proposed action is covered by an Addendum to the Initial Study and Negative Declaration which was prepared for the original Climate Action Plan (CAP) and approved by the City Council on September 20, 2011 (and subsequently amended in 2014) in compliance with the requirements of Section 15074 of the State CEQA Guidelines. The Plan is a policy-oriented, programmatic document that describes a series of actions and programs that, when conducted by the City and its partners, can reduce greenhouse gas (GHG) emissions and its effects within the City of East Palo Alto. No significant environmental impacts that would require mitigation were identified. Any development occurring after the adoption of the proposed CAP, including development or expansion of recreational facilities, would be considered a separate “project” and would be subject to individual environmental review as well as compliance with all existing City and State standards (General Plan Land Use and Open Space Elements; General Plan EIR; Zoning Ordinance Chapters 24, 25, and 26; PRC 2100 et seq.). Additionally, as a separate

12.2.a
Packet Pg. 234 Attachment: Resolution - CAP (2756 : Draft Community Climate Action Plan and Adaptation Strategies 2030) Vv
and alternative basis, the proposed action is statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15061(b)(3), the general rule that CEQA only applies to actions that have the potential to cause a significant impact, and Section 15308 because it assures the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.

PASSED AND ADOPTED this 5
th day of September 2023, by the following vote:

AYES:

NOES:

ABSENT:

Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:

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

12.2.a
Packet Pg. 235 Attachment: Resolution - CAP (2756 : Draft Community Climate Action Plan and Adaptation Strategies 2030) DRAFT
2030 Climate Action Plan and
Adaptation Strategies
June 2022

12.2.b
Packet Pg. 236 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
2 12.2.b
Packet Pg. 237 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
1 CLIMATE
ACTION
PLAN
&

ADAPTATION

STRATEGIES

12.2.b
Packet Pg. 238 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
2 12.2.b
Packet Pg. 239 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Acknowledgements
3 Acknowledgements
City of East Palo Alto Community Review
City of East Palo Alto City Council
Mayor Lisa Gauthier
Vice Mayor Antonio López
Councilmember Ruben Abrica
Councilmember Carlos Romero
Councilmember Martha Barragan
City of East Palo Alto Planning Commission
Javanni Brown-Austin
Ofelia Bello (former)
Robert Allen Fisk
Michael Mashack, Chair
Juan Mendez
Robert Sherrard, Vice Chair
Q. Smith
Uriel Hernandez
Iliana Nicholas (alternate)
City of East Palo Alto Public Works and Transportation Committee Court Skinner
Uhila Makoni
Gary W. Gray
Christoper Kao
Martha Fomby Reed
Deborah Lewis-Virges
Mark Dinan
Climate Resilient Communities (CRC)
Violet Wulf-Saena
Cade Cannedy
Uriel Hernandez
Sharifa Wilson
Mamadee Uhila
Tiffany Hautau
Court Skinner
Robert Jones
Marisela Ramos
Heleine Grewe
Najiha Al Asmar
Roxana Franco
Ofelia Bello
Illiana Nicholas
Deborah Lewis-Virges
Steward Hyland
Jeff Poetsch
Jahkim Hendrix
Caroline Beckman
Cristal Montes
Kenia Najar
Raquel Lima
Fill Zargoza
Cristina Becerra
Julian Garcia
Lidia Garcia
Lesley Lopez
Jennifer Adams

12.2.b
Packet Pg. 240 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Acknowledgements4
Youth United for Community Action (YUCA)
Neighborhood Groups

12.2.b
Packet Pg. 241 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Technical assistance from DNV GL & Rincon Consultants, Inc. 5 City of East Palo Alto Staff and Technical Review
City of East Palo Alto City Staff
Michelle Daher, Management Analyst II, Lead
City Manager
Melvin Gaines
Professional Review
Humza Javed, Public Works Director
Fatima Khan, Climate Action Plan Fellow
Anwar Mirza, Senior Engineer
Amy Chen, Community and Economic Development Director
Elena Lee, Planning Manager
Salifu Yakubu, Senior Planner
Romeo Herrera, Chief Building Official
Jeff Lui, Interim Chief of Police
Elizabeth Lam, Community Service Officer
Technical assistance from DNV GL & Rincon Consultants, Inc.

Prepared by Harris & Associates

12.2.b
Packet Pg. 242 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Technical assistance from DNV GL & Rincon Consultants, Inc. 6 This Climate Action Plan was developed using the Regionally Integrated Climate Action Planning Suite (RICAPS) template and climate action planning tools.

Original RICAPS template and tools - 2011
Funding: A grant from the Bay Area Air Quality Management District (BAAQMD) and by California utility customers, administered by Pacific Gas and Electric Company (PG&E) under the auspices of the California Public Utilities Commission and with matching funds provided by the City and County Association of Governments of San Mateo County (C/CAG).

Steering Committee: Elizabeth Claycomb (Formerly City of Pacifica), Erin Cooke (Formerly City of Cupertino), Brandi de Garmeaux (City of Portola Valley), Shelly Reider (City of Millbrae), Jim Shannon (Formerly City of San Bruno) Updated RICAPS template and tools - 2020
Funding: California utility customers, administered by Pacific Gas and Electric Company (PG&E) under the auspices of the California Public Utilities Commission and with matching funds provided by the City and County Association of Governments of San Mateo County (C/CAG).

Ad Hoc Committee and Reviewers: Michael Barber (County of San Mateo), Vanessa Brannon (City of Foster City), Jennifer Chong (City of Half Moon Bay), Hannah Doress (County of San Mateo), Adrienne Etherton (City of Brisbane), Kathleen Gallagher (City of Colma), Kirk Gharda (Formerly of City of Redwood City), Jonathan Kwan (City of Colma), Adam Lokar (City of San Carlos), Rachael Londer (County of San Mateo), Brian Oh (County of San Mateo), Vicky Sherman (City of Redwood City), Veronika Vostinak (City of Half Moon Bay) Project Consultant: DNV GL
Staff: Sandy Wong (C/CAG), Kim Springer (County of San Mateo), Susan Wright (County of San Mateo), John Allan (County of San Mateo), Denise Lin (County of San Mateo)

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Table of Contents
7 Table of Contents
Technical assistance from DNV GL ........................................................................................................................5 Prepared by Harris & Associates............................................................................................................................5 February 2021............................................................................................................................................................1 Executive Summary..................................................................................................................................................9

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

Why a Climate Action Plan? .....................................................................................................................................11 Building on a Foundation..........................................................................................................................................11 Vision for a Better Future..........................................................................................................................................15 Benefits of Climate Action.........................................................................................................................................16

2. CAP Overview......................................................................................................................................................17 What’s New in This CAP...........................................................................................................................................17 How the CAP Came Together ..................................................................................................................................18 Document Roadmap.................................................................................................................................................18 Strategies and Focus ................................................................................................................................................19

3. Impacts of Climate Change....................................................................................................................................

4. Greenhouse Gas (GHG) Emissions ..................................................................................................................22 Generation-based GHG Inventory ............................................................................................................................23 Future Emissions ......................................................................................................................................................29 Reductions from State-Level Actions........................................................................................................................30 East Palo Alto’s Contribution to the Goal..................................................................................................................31

5. Strategies and Actions.......................................................................................................................................32 Introduction ...............................................................................................................................................................33 Strategies to Get Us There.......................................................................................................................................35 Solid Waste...............................................................................................................................................................57

6. Implementation....................................................................................................................................................58 By the Numbers: Meeting the Emissions Goal.........................................................................................................59 Getting It Done: Managing the Strategy ...................................................................................................................60 Better Together .........................................................................................................................................................60 Timeline.....................................................................................................................................................................62 Implementation Budget.............................................................................................................................................62 Monitoring and Improvement ...................................................................................................................................63

7. Impacts of Climate Change and Climate Adaptation ......................................................................................65 Climate Science Overview ........................................................................................................................................66 Climate Change in East Palo Alto.............................................................................................................................67 Future Projections .....................................................................................................................................................67 Social Vulnerability....................................................................................................................................................68 Climate Impacts in East Palo Alto.............................................................................................................................69 Financial Impact of Climate Change.........................................................................................................................78

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Table of Contents
8 Adaptation Strategies................................................................................................................................................79

8. Environmental Justice and Equity....................................................................................................................87 Environmental Justice Existing Conditions Assessment..........................................................................................88 Environmental Justice Goals and Policies Gap Analysis .......................................................................................103

9. Carbon Sequestration ......................................................................................................................................109

10. Conclusion.......................................................................................................................................................111

11. Appendix..........................................................................................................................................................113 A. Glossary of Abbreviations...................................................................................................................................114 B. Climate Change..................................................................................................................................................115 C. Policy ..................................................................................................................................................................123 D. Partners ..............................................................................................................................................................127 E. Summary of Funding Sources ............................................................................................................................133 F. Adaptation Strategies: Planning for Climate Impacts .........................................................................................135

12. Endnotes..........................................................................................................................................................138

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Executive Summary
9 Executive Summary
Cities are on the front lines when it comes to climate change. Cities are also leading the world in reducing carbon emissions through aggressive policies and adoption of clean technologies. The City of East Palo Alto’s 2030 Community Climate Action Plan and Adaptation Strategies establishes guidelines for reaching the stated goal of reducing per person (or per capita) carbon emissions 55 percent below 2005 levels by 2030 and aspires to reach carbon neutrality by 2045.

The City of East Palo Alto has already exceeded the goals established in the 2011 Climate Action Plan. Between 2005 and 2017, the City reduced total community emissions by 27,362 metric tons (MT) of carbon dioxide equivalents (CO2e) to achieve 20 percent below 2005 levels, while the goal was 15 percent. This was equivalent to a per capita emissions reduction from 4.62 MT CO2e/person in 2005 to 3.55 MT CO2e/person in 2017. To achieve a 55 percent per capita reduction by 2030, the City of East Palo Alto will need to reduce per capita emissions to 2.09 MT CO2e/person in 2030. This “bending of the carbon curve” is essential to meeting the goal of carbon neutrality before 2045 and avoiding worsened climate change impacts.

To meet this goal, this CAP provides a roadmap to reduce emissions in three sectors: 1) energy and water, 2) transportation and land use and 3) solid waste. The CAP identifies key actions that need to be accomplished within the next decade to stay on pace with achieving the goal. The City does not anticipate any substantial cumulative impacts from implementation of the CAP but will review annual implementation plans for compliance with CEQA.

Even if all emissions were eliminated today, we will continue to see increasingly severe climate change impacts in the future, including sea-level rise, hotter temperatures, and increased fire/smoke risk. East Palo Alto understands the importance of laying out a framework for enhancing the community’s resilience to these impacts. The City engaged experts and community leaders to plan the best path forward for East Palo Alto, and we hope you support our vision. This CAP focuses on programs and policies that seek to equitably improve health outcomes, reduce the cost of future energy use, while enhancing quality of life and wellbeing.

This CAP describes the process East Palo Alto will embark on to develop a climate change resiliency plan moving forward.

The community’s investment to support the CAP will be many times greater than East Palo Alto’s own costs. East Palo Alto will need to support residents’ and businesses’ efforts to find funding to decarbonize their buildings, vehicles, and lifestyles. East Palo Alto may discourage carbon-emitting activities through fee-based systems or carbon taxes to shift community investment away from fossil fuels to clean technologies.

To ensure full implementation of the CAP, an interdepartmental team of City staff, in collaboration with civic and business leaders, must be assembled to maintain momentum and ensure accountability. Staff will provide annual progress reports, including greenhouse gas (GHG) inventories, and will prepare an update to the CAP after five years.

This CAP provides a pathway to accelerate our historical success to reduce climate warming emissions by an average of 5 percent per capita annually between March 2017 and reaching carbon neutrality in 2045. a
It is also a
call to action to residents, community organizations, and businesses to take an active part in our transition to a low-carbon future and clean economy. In this process, we will foster a vibrant economy, increase our resiliency, and support East Palo Alto’s vision for a livable and sustainable community for all generations to come.

Lisa Yarbrough-Gauthier
a This assumes that no GHG reductions have occurred between the CAP’s inventory year in 2017 and adoption year in 2022.

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Executive Summary
10 Mayor

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Introduction
11 Introduction
Why a Climate Action Plan?
The City of East Palo Alto is pleased to present the following update to our Climate Action Plan (CAP). This 2030 CAP, designed to be a blueprint of our community’s response to challenges posed by climate change, and is a living document reflecting the ongoing efforts and challenges our community faces as the impacts from climate change grow more frequent, severe, and urgent.

Our City is a frontline community, with a history of environmental injustice, and in a geographical position that makes it more susceptible to poor air quality and flooding. This adversely affects an already disadvantaged community.

Our city cannot solve the climate crisis alone. This CAP documents how East Palo Alto plans to collaborate with our partners in county, state, and federal government, along with community organizations and local businesses, to create new programs, services, and policies that will support our community in taking actions that reduce greenhouse gas (GHG) emissions.

Building on a Foundation
The City of East Palo Alto has already made significant progress in reducing greenhouse gas emissions through the implementation of the 2011 Climate Action Plan (2011 CAP). In the 2011 CAP, twenty-three actions to address our changing climate were proposed, with a collaborative of executive City staff, the Public Works and Transportation Committee, the Planning Commission and the City Council supporting the adoption. 1 INTRODUCTION

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Introduction
12 City Council has since authorized the following environmental programs to support implementation of the ten general goals posited in the 2011 CAP.

Goal E-1: Become more Energy Efficient:

Goal attained in part through participation in the Peninsula Clean Energy (PCE), a Community Choice Energy program, which was formed in February 2016, when all cities in San Mateo County, plus the County of San Mateo, voted to unanimously form a Joint Powers Authority to administer the program, following years of careful study and development. As a member of PCE, combined resources enable magnification of efforts along with focused staffing support to enable all communities to shift from a carbon-based, emission (greenhouse gas) intensive energy sources, to carbon neutral, zero emission, renewable energy systems throughout San Mateo County.

Goal E-2 Increase Renewable Energy
Goal Attained with the “Building Electrification and Electric Vehicle Infrastructure Reach Codes Ordinance” adopted by the City Council on October 20, 2020. This Ordinance (07-2020) prioritizes solar, electric vehicle charging stations, and all electric buildings (with minor exceptions), and expressly disincentivizes use of natural gas in new buildings.

This goal further enhances AB 2188, wherein housing rehabilitations, or small residential rooftop solar installations for single family owner-occupied homes will have a streamlined approval process. Through a partnership with GRID Alternatives (a non-profit organization that brings the benefits of solar technology to communities that would otherwise not have access to it), we held workshops and installations of solar and electric vehicle charging systems throughout the City.

In 2020, the City installed a solar powered camera system along the City’s new Pedestrian Overcrossing.

In 2021, the City adopted the Reach Codes to support the installation of Electric Vehicle Charging Stations and solar rooftops, as well as all electric appliances on all new projects with minor exceptions for low-income projects and projects that would be otherwise infeasible.

In early 2022, the City Installed new street solar powered lighting along a trail segment (pilot project) and upgraded inground cross walk lighting to solar.

In 2021, the City installed four solar powered traffic speed signs throughout the City.

Goal TL-1 Prioritize Smart Growth Land Use
The adoption of the updated General Plan Vista 2035 (adopted in 2016) as well as the Ravenswood Business District / 4 Corners Specific Plan (RBD) (adopted in 2012) have both proposed the enhancement of dense development throughout the City. The City continues to expand low-income housing with expanded public transportation and active transportation amenities to reduce single vehicle trips. The City is in process of updating the RBD Specific Plan. (https://www.cityofepa.org/planning/page/ravenswood-business-district-4-corners-specificplan-update) Goal TL-3 Encourage Walking and Bicycling
The Bicycle Transportation Plan (adopted in 2011) and subsequent Bicycle Maser Plan (adopted 2017, Reso. 4905) each expanded planned networks of bicycle networks with special emphasis on locations where Class I facilities can be prioritized. The City has further expanded smart growth land use efforts by working in conjunction

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Introduction
13 with the San Mateo County Transit Agency (SAMTRANS) to expand bus routes and realign existing routes to better serve the highest density housing areas of the City, as well as the local destinations serving the residents and updating routes when new high density housing developments are planned. The City has updated Safe Routes to School annually, installed a Pedestrian Overcrossing (the first such Class I facility in East Palo Alto opened in 2019) and prepared and funded an American Disabilities Act (ADA) Compliance and Transition Plan to update sidewalks and improve accessibility throughout the community. The City also finalized a comprehensive citywide Mobility Study to better understand the transportation patterns and interactions between motor vehicle traffic and alternative modes of transportation including walking and biking.

In 2012, the City Council Adopted a Complete Streets Policy (Resolution No. 4359) to ensure all users have public street access, via any standard mode of transportation. This policy was incorporated into the General Plan Vista 2035.

Goal TL-4: Increase Urban Green Space
In 2012, Cooley Landing Park was opened to the public, reclaiming a former Brownsfield area previously used as a County dump site. Through implementation of Vista 2035 General Plan, the City has partnered with Grassroots Ecology and Canopy to assist with expanding urban green space by working with local volunteers to plant trees and native vegetation throughout some of the more baren landscapes in the City including trail entrances, parks and private property. Working with public and private partnerships, these two entities have planted thousands of plants and trees throughout the community while enhancing educational awareness within the community.

Goal W-1: Promote Material Re-use
The City of East Palo Alto has hosted one Repair Cafe, bringing residents together to repair damaged household items and link the community with resources to repair their damaged items. The City is working in conjunction with San Mateo County on a Safe Surplus Food Donation program to get unwanted, edible food to people who need it.

In 2013, the City Council adopted a single use plastic bag prohibition to both discourage the use of single use bags while encouraging re-usable bags. The City hosted events which distributed reusable bags as well as enabled community members to make their own reusable bags out of old t-shirts. Live in Peace, a local non-profit partner, has been repairing and providing used fully functional bicycles to the community, having provided over 150 bicycles to residents, to date.

Goal W-2 Increase Recycling
In 2017, the City Council adopted the Clean City Plan which instigated the hiring of City staff to support educational efforts to inform residents about recycling and composting. To date, tens of thousands of contacts have been made with residents to support them in properly sorting their recycling and utilizing recycling bins rather than overflowing trash bins. The City also has an inspection program wherein businesses are inspected to ensure they have adequate recycling and compost service, with escalating enforcement for non-compliance.

Goal W-3 Increase Composting
In 2017, the City Council adopted the Clean City Plan which instigated the hiring of City staff to support educational efforts to inform residents about recycling. To date, tens of thousands of contacts have been made with residents to support them in properly sorting their compost and utilizing compost bins rather than overflowing trash bins. The City also works in conjunction with Recology’s team to provide compost pails to residents living in multi-family housing. Further, the City has a new inspection program which inspects that all businesses that meet mandatory requirements have compost bins and utilize them.

Goal MU-1: Increase Municipal Energy Efficiency and Renewable Energy

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Introduction
14 The following are efforts the City made to further this goal:
2012 Replaced roughly 1,000 high pressure sodium street lights and traffic signals with LED lights. 2013 Replaced all interior lights to LED for Annex Building located at 160 Tate Street.

In 2016, San Mateo County, from which the City leases the City Hall facility, has installed photovoltaics/ solar panels and shading frames over the parking lot located at 2415 University Avenue.

In 2017, as a partner of Peninsula Clean Energy, the City participates in a program to purchase 100% carbon-free energy that is more than 50.5% renewable for all City facilities and will be fully renewable by 2025. As of the drafting of this Plan, PCE provides nearly carbon-free energy to all customers. 2018 Replaced one electric pump from the City’s primary pump station to more energy efficient pump.

Goal MU-3: Work towards Zero Waste Government Operations In 2017, City Council adopted the Clean City Plan, which prioritizes recycling and composting education. The City has installed composting, recycling and trash receptacles in all facilities for staff use. Upon hiring, City staff receives overview of the solid waste management practices, to ensure all staff understand the importance of capturing all materials from the waste stream which can be repurposed.

The organization focused on reducing paperwork through a digitization effort from 2011 to present, reducing the amount of paper, ink and energy used for printing, along with the transportation of documents to various City buildings. The organization has furthered the reduction of paperwork throughout the most recent years and intends to be fully electronic processing within the decade, to the maximum extent practicable.

In 2021, the City passed Ordinance 05-2021 to establish an environmentally friendly purchasing policy to support purchasing recycled content items and encourage the use of products that can be composted.

Beyond the Goals
The 2011 Climate Action Plan categorized measures into three priorities based on the expected cost of implementation and the expected GHG reductions, with the highest priority or “Green Light” measures being the highest expected GHG reductions for the cost. Of the twenty-three actions listed in the 2011 Climate Action Plan, the City has met all six of the “Green Light” measures recommended for high priority implementation.

Of the “Yellow Light” measures recommended as a medium priority, the City implemented all but the following:

TL-2.2: Promote education and outreach on pre-tax transit subsidies. (if available) Of the “Red Light” measures, considered a low-priority, the City implemented all items indicated.

Of the 23 measures indicated, the goal was to surpass a reduction goal of 10,557 metric tons of carbon dioxide equivalent. All told, the City managed to reduce more than double this amount of carbon dioxide, over 27,000 metric tons by 2017.

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Introduction
15 Vision for a Better Future
If the year was currently 2030, here’s what we’d like to be able to say: We have reduced our per capita carbon emissions at least 55 percent below 2005 levels. All our energy comes from renewable sources and is reliable. Many mobility options are zero carbon, shared and active, and congestion and air pollution are greatly reduced. Nearly all our waste is reused, repurposed, or recycled. All community members have reliable access to affordable, clean water. We have created a culture of awareness and action. We utilize smart city technology and principles to advance efficiency in our energy, water, waste, transportation systems, and infrastructure. Environmental, economic, and social needs are considered and are in balance. Our prosperous economy and quality of life have benefited from this transformation, and we feel safe and resilient in the face of Sea Level Rise. We are now healthier, more connected, more equitable, and resilient.

Adopted 2011
CAP
Expanded the
Safe Routes to
School Program
Instituted a
mandatory
requirement for
businesses to
recycle
Retrofited all
traffic signals,
pedestrial walk
signs, and
streetlights with
LED lights
Provided
recycling and
compost bins to
all City
buildings.

Develop Urban
Forestry Plan

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Introduction
16 Benefits of Climate Action
Beyond the direct benefit of a more stable climate, many climate actions generate additional benefits, such as those listed below.
• Enhanced resilience – Actions that reduce GHG emissions can also bolster resilience to climate hazards. Chapter 7: Impacts of Climate Change summarizes the City’s risk to climate impacts and outlines the City’s commitment to reducing risk through effective climate adaptation strategies and a return towards pre-developed nature-based land use.
• Environmental Justice – Climate actions can foster a more equitable and inclusive community and can improve air quality as well as physical and mental health. Chapter 8: Environmental Justice provides a supplementary analysis of environmental justice topic areas and identifies policy gaps that the City intends to address through the implementation of this CAP to ensure all residents increase in resiliency and adapt together, with improved health outcomes.
• Economic Justice – Climate actions can boost the local economy through local projects, programs, and jobs. Chapter 8: Environmental Justice discusses the importance of growing sustainably and ensuring community members benefit from the region’s economic growth and are not trapped into old infrastructure which results in higher costs for energy in the future. • Carbon Sequestration – Many actions that address climate vulnerability and risk also reverse emissions of GHGs into the atmosphere. As outlined in Chapter 9: Carbon Sequestration, the City is committed to growing its urban forest and other strategies that sequester carbon, reduce stormwater runoff, promote infiltration, prevent soil erosion, and increase ecosystem biodiversity.

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17 2. CAP Overview
What’s New in This CAP
Since the City’s first climate action plan (CAP) was adopted in 2011, much has changed related to climate protection. Consequently, this CAP includes the following updates and additions:
• Incorporates new state policies.
2 CAP OVERVIEW

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18 • Includes new strategies that will help the City achieve their greenhouse gas reduction goal. • Documents climate change impacts and previews what the City needs to plan for. • Focuses on equity, or how to make sure everyone benefits, especially the most vulnerable members of our community.

Since the process of drafting this CAP began, several state measures have been passed in order to meet California’s climate goals with urgency. In 2022, AB 1279 set a state-wide 40 percent emissions reduction target by 2030, and an 85 percent emissions reduction target by 2045, compared to 1990 levels. In addition, SB 1020 also passed in 2022, will require that 90 percent of California’s electricity comes from clean energy sources by 2035, 94 percent of it by 2040, and 100 percent of it by 2045.

How the CAP Came Together
This Climate Action Plan (CAP) was developed in partnership with the Institute for Local Government, City/County Association of Governments of San Mateo County (C/CAG), and the County of San Mateo Office of Sustainability through the San Mateo County Energy Watch program and its Regionally Integrated Climate Action Planning Suite (RICAPS) initiative. RICAPS is co-funded by C/CAG and PG&E.

RICAPS assists member jurisdictions and other interested local governments to develop climate action plans that are consistent with California Environmental Quality Act (CEQA) guidelines, including both the CEQA Guidelines Amendments effective December 28, 2018, and the Bay Area Air Quality Management District (BAAQMD)’s CEQA Air Quality Guidelines (updated May 2017). RICAPS tools include a Menu of Measures, forecasting tool, climate action plan template, and technical assistance from DNV GL, an environmental consultant.

Document Roadmap

SUPPLEMENTAL

CHAPTERS
See how climate
change is already
affecting East Palo
Alto, how the City is
addressing
environmental and
economic justice, and
investing in carbon
sequestration.
(page 51)

GOALS AND

TARGETS
Learn how East
Palo Alto's GHG
emissions are
calcuated and about
the goals we have
set for reducing
those emissions.
(page 14)

STRATEGIES AND

ACTIONS
Read about East Palo
Alto's four focus areas.

Within each one, learn
about progress to
date, overarching
strategies, and actions
that will move the
strategies forward.
(page 25)

IMPLEMENTATION
See how we plan to
put the CAP into
action, including the
timeframe of priority
actions, who we plan
to collaborate with,
who is responsible for
accomplishing actions,
and how we plan to
track progress.
(page 43)

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19 Strategies and Focus
Energy and Water
This includes energy that is used in community and public facilities, as well as in water treatment and transportation. This strategy addresses opportunities to reduce energy use, shift from natural gas to electricity, and reduce water consumption.

Transportation
This includes public transit, commuting, and how we use land. Opportunities to reduce GHG emissions include reducing the number of miles we drive alone in cars and increasing housing near transit.

Waste
This includes emissions from solid waste generation and disposal. The primary goal is to reduce emissions by encouraging the community to reduce waste. The secondary goal is to divert it from the landfill through recycling and composting. In this document, we have included locally produced foods with a goal of reducing the carbon footprint of organics from cradle to grave.

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Packet Pg. 256 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
20 3. GHG Reduction Goal
3 GHG REDUCTION
GOAL

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The Goal
21 The Goal
Assembly Bill (AB) 32 directed the State to reach 1990 emissions levels by 2020. To meet this goal, the California Air Resources Board (CARB) approved the Climate Change Scoping Plan in 2008. Municipal governments were asked to reduce emissions by at least 15 percent by 2020 compared with current levels (2008 levels or earlier).

This prompted many cities to adopt community-wide emissions reduction goals of at least 15 percent below 2005 levels. Appendix C.2 describes all applicable laws, regulations, and orders relevant to climate mitigation in detail.

In 2015, Governor Brown issued Executive Order B-30-15 to set the 2030 emissions goal (40 percent less than 1990 levels by 2030). It was codified by California Senate Bill (SB) 32. CARB followed up with an updated California’s 2017 Climate Change Scoping Plan.
1 In response, East Palo Alto is joining other municipalities in adopting emissions reduction goals for the community. East Palo Alto has set a community wide goal of reducing per capita emissions 55 percent below 2005 levels by 2030, to correspond to required reductions under SB 32. b
In September 2018, Governor Brown issued California Executive Order B-55-18, setting the goal of achieving carbon neutrality as soon as possible (by 2045 at the latest), and maintaining net negative emissions from that point forward. The following year, the San Mateo County Board of Supervisors committed to achieving carbon neutrality by 2040. 2 The most recent update to the Climate Change Scoping Plan was approved in 2022 and outlines the roadmap to comply with recent state-approved emissions targets which aim to reduce anthropogenic emissions to 85 percent below 1990 levels and achieve carbon neutrality by 2045.

East Palo Alto recognizes the carbon neutrality goal set by the state and County; however, the City has not formally adopted goals herein to achieve carbon neutrality. The City has set carbon neutrality as a “soft target” as the City continues to fulfill goals set forth in this 2030 CAP. Given the limited resources and significant opportunities for GHG reduction with regards to barriers the City faces in attaining carbon neutrality, the City will emphasize structural supports that will enable realistic goals to reach carbon neutrality as a follow-up to these actions. The City has set per capita target reductions at 55 percent per year to attain carbon neutrality by the year 2045.

While the City recognizes that San Mateo County has set a goal of carbon neutrality for 2040, the City of East Palo Alto is determined to establish local carbon neutrality as a metric of success following the State’s objectives and intends to take actions to reach the goal of carbon neutrality as soon as possible while aligning efforts to cobenefit residents of the community meeting equity, health, quality of life and economic benefits.

With this Climate Action Plan, East Palo Alto is committing to a 55 percent reduction in per capita emissions below 2005 levels by 2030 and 100 percent reduction –carbon neutrality—by 2045. b GHG reduction targets can be set as either an efficiency target (MT CO2e per capita) or as a community-wide mass emissions target (total MT CO2e). With CARB’s 2017 Scoping Plan Update, the state recommends using efficiency metrics for local targets to incentivize growth in a coordinated manner and not penalize cities which are growing at significant rates. [California Air Resources Board. 2017. California’s Climate Change Scoping Plan, p. 99-102.]

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Greenhouse Gas (GHG) Emissions Inventories
22 4. Greenhouse Gas (GHG) Emissions
4 GREENHOUSE GAS
(GHG) EMISSIONS

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Greenhouse Gas (GHG) Emissions Inventories
23 Greenhouse Gas (GHG) Emissions
Inventories
In this CAP, the City used a generation based greenhouse gas (GHG) inventory consistent with the Community GHG Protocol. Released by Local Governments for Sustainability (ICLEI) in October 2012, the Community GHG Protocol represents a new national standard in guidance to help U.S. local governments develop effective community GHG emissions inventories. It establishes reporting requirements for all community GHG emissions inventories, provides detailed accounting guidance for quantifying GHG emissions associated with a range of emission sources and community activities. The protocol also provides a number of optional reporting frameworks to help local governments customize their community GHG emissions inventory reports based on their local goals and capacities. The State of California Governor’s Office of Planning and Research recommends that California local governments follow the new national Community Protocol when undertaking their GHG emissions inventories. Released by Local Governments for Sustainability (ICLEI) in October 2012, the Community GHG Protocol represents a new national standard in guidance to help U.S. local governments develop effective community GHG emissions inventories. It establishes reporting requirements for all community GHG emissions inventories, provides detailed accounting guidance for quantifying GHG emissions associated with a range of emission sources and community activities. The protocol also provides a number of optional reporting frameworks to help local governments customize their community GHG emissions inventory reports based on their local goals and capacities. The State of California Governor’s Office of Planning and Research recommends that California local governments follow the new national Community Protocol when undertaking their GHG emissions inventories.

The GHG inventory estimates existing, and future levels of greenhouse gas (GHG) emissions based on existing and projected energy use. It includes 1) direct consumption of energy by sector (i.e. transportation), 2) consumption of energy via the electrical grid, and 3) emissions from the treatment/decomposition of waste. This is the industry-accepted methodology for quantifying community GHG emissions, with emissions reported by emission source category.

Generation-based GHG Inventory
East Palo Alto’s first generation-based inventory was completed for 2005 (the baseline year). Beginning in 2010, new community GHG inventories are completed annually by Pacific Gas & Electric (PG&E), enabling East Palo Alto to track progress over time.

In 2005, East Palo Alto emitted an estimated 136,027 metric tons (MT) of carbon dioxide equivalent (CO2e) from the residential, commercial, industrial, transportation, waste, and municipal sectors (equivalent to 4.62 MT CO2e/person).cIn 2017, East Palo Alto emitted an estimated 108,665 MT CO2e (equivalent to 3.55 MT CO2e/person). In comparison to the base year of 2005, that is a 20 percent decrease in total community emissions and a 23 percent reduction in per capita emissions.

As shown in Figure 4.1 and Table 4.1, the two largest categories of emissions are transportation (including highway travel, local travel, and off-road equipment) and building energy use (including residential and commercial/industrial).
c Carbon dioxide equivalent is a unit of measure that normalizes the varying climate warming potencies of all six GHG emissions, which are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). For example, one metric ton of methane is equivalent to 21 metric tons of CO2e. One metric ton of nitrous oxide is 210 metric tons of CO2e.

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Packet Pg. 260 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Greenhouse Gas (GHG) Emissions Inventories
24 The residential and commercial/industrial sectors represent emissions that result from electricity and natural gas used in both private and public sector buildings and facilities. The transportation sector includes emissions from private and commercial vehicle. Off-road equipment includes lawn, garden, construction, industrial, and commercial equipment. Figure 4.1 shows the proportion of East Palo Alto’s total GHG emissions from all major sources for 2017.

Figure 4.1: Community Emissions by Sector: 2017
Residential
16%
Commercial/Indus
trial
8%
Transportation:

Off-Road
Equipment
5%
Transportation:

State Highways
50%
Transportation:

Local Roads
18%
Generated Waste
& Wastewater
3%
Water
0%

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Packet Pg. 261 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Greenhouse Gas (GHG) Emissions Inventories
25 Table 4.1: 2005 vs. 2017 Community Emissions by Sector Sector 2005 GHG Emissions
(MT CO2e)
2017 GHG Emissions
(MT CO2e)
Percent Change (%)
Transportation – State
Highways 67,286 54,794 -21.0%
Residential Energy Use 24,838 17,467 -29.6%
Transportation – Local Roads 19,715 19,467 -1.2%
Commercial/Industrial Energy
Use 15,692 7,782 -50.4%
Waste
(Generated + Landfill Cover) 3,360 2,153 -36.0%
Direct Access 3,092 234 -92.4%
Transportation – Off-road
Equipment 2,044 5,435 +165.9%
Stationary Sources N/A 396 N/A
Wastewater and Water N/A 937 N/A
Total 136,027 108,665 -20%
Estimated Populationd 29,431 30,641 +4%
Per Capita Emissions (MT
CO2e/person) 4.62 3.55 -23%
As shown in Table 4.1, East Palo Alto’s GHG emissions have declined over time. Major contributors of this decline include a 6 percent reduction in total electricity use and an 18 percent reduction in total natural gas use.

These emissions reductions since 2005 are a good start, but East Palo Alto will have to significantly increase its emission reduction rate to achieve a 55 percent reduction in per capita emissions by 2030.

Emissions are described by category below.

Energy Emissions
Emissions from electricity and natural gas were calculated based on guidance in the Community GHG Protocol.

Electricity and natural gas consumption was provided by PG&E and PCE. The total Direct Access electricity consumption in the County was provided by the California Public Utilities Consumption (CPUC). Direct access is when an end-use customer buys electricity on the wholesale electricity market, rather than from Pacific Gas and Electric Company (PG&E) or Peninsula Clean Energy (PCE). According to PG&E representatives, all-natural gas usage, regardless of whether it was purchased from PG&E or not, is included in the PG&E totals for natural gas.

PCE was launched collaboratively by the County of San Mateo and all 20 of its cities and towns in 2016 to reduce emissions via cleaner energy, while helping customers save money through lower rates. PCE currently offers two electricity options to all residents, businesses, and municipalities in San Mateo County. Customers are automatically enrolled in the ECOplus rate that consists of 50.5 percent renewable and 95 percent greenhouse gas-free energy and can “opt up” to the ECO100 rate that consists of 100 percent renewable energy that is Green-e certified. PCE has a stated goal of sourcing 100 percent of electricity from California Renewable Portfolio Standard (RPS) eligible renewable energy by 2025.
d Population estimates for 2005 and 2017 are from the California Department of Finance (E-4 Historical Population Estimates for Cities, Counties, and the State). Accessed at: https://dof.ca.gov/forecasting/demographics/estimates/

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Packet Pg. 262 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Greenhouse Gas (GHG) Emissions Inventories
26 In 2017, electricity and natural gas emissions accounted for 29 percent of total GHG emissions in East Palo Alto.

East Palo Alto’s total stationary energy consumption (electricity and natural gas consumed by residential, commercial, and industrial buildings) was 19,012,555 kilowatt-hours (kWh) of electricity and 3,780,449 therms of natural gas, including direct access electricity customers.

Of the total 26,329 MT CO2e emitted due to energy use in buildings, natural gas accounts for a greater portion (19 percent) of total emissions than electricity (4 percent), primarily due to the City’s participation in PCE. As shown in Figure 4.2 natural gas use from residential, commercial, and industrial uses is responsible for 80 percent of all building emissions, compared to 20 percent from electricity use. The emissions per kWh of electricity generated (the emission factor) can vary considerably from year to year and can depend on the provider of electricity (e.g., PCE, PG&E, and direct access providers). For example, in 2017, PG&E’s emission factor was 210 lbs CO2/MWh, PCE’s ECOplus (50 percent renewable) emission factor was 142 lbs CO2/MWh, and PCE’s ECO100 (100 percent renewable) emission factor was 0 lbs CO2/MWh.

Figure 4.2: Building GHG Emissions by Sector and Fuel Type Transportation Emissions
Transportation emissions are based on VMT estimates. Calculations are done separately for Local Roads VMT and for State Highways VMT. Calculations are also done separately for gasoline fuel usage and VMT and for diesel fuel usage and VMT. The VMT fuel mix is used to determine the portion of VMT that is gasoline, diesel and electric. Average fuel efficiencies are then applied to estimate the gasoline and diesel fuel consumption. CO2 emission factors are applied to the estimated fuel consumption to calculate CO2 emissions, and CH4 and N2O emission factors are applied to VMT to calculate CH4 and N2O emissions. Emission Factors provided by the Bay

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Packet Pg. 263 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Greenhouse Gas (GHG) Emissions Inventories
27 Area Air Quality Management District and are based on the EMission FACtor (EMFAC), a model (v1.0.7) that estimates the official emissions inventories of on-road mobile sources in California. This methodology is the same as the methodology that was used for the baseline 2005 inventory.

Transportation emissions accounted for 74 percent of total 2017 GHG emissions in East Palo Alto. Travel on local roads accounted for 18 percent of total emissions; travel on state highways within city limits accounted for 51 percent; and emissions from off-road equipment, such as lawn, garden, and construction equipment, accounted for 5 percent. Figure 4.3 shows that transportation on state highways accounted for 74 percent of on-road transportation emissions. While the City of East Palo Alto has limited authority over the state highways passing through the community, due to the equity issues pertaining to community health and impacts on local safety concerns, the community has requested the emissions of pass-through traffic remain for tracking purposes. The emissions will not be included for the City’s reduction goals, however.

Figure 4.3: On-Road Transportation Emissions by Road Type Solid Waste Emissions
Solid waste emissions were calculated using the Community GHG Protocol. In general, waste disposal to the landfill and the amount of Alternative Daily Cover is provided for each jurisdiction in the CalRecycle Disposal Reporting System database. Waste characterization data from the California Waste Characterization Study of 2008 are used to determine what percentages of materials are in the disposed waste stream. For Alternative Daily Cover, the waste characterization is provided in the CalRecycle Disposal Reporting System by jurisdiction.

Tonnages of each waste material disposed are summed, and then multiplied by emission factors in the Community GHG Protocol to determine total emissions from disposed waste.

Waste sector emissions accounted for 2 percent of total 2017 GHG emissions in East Palo Alto. Thirty-nine tons of solid waste were sent to landfills. Emissions from waste sent to landfills accounted for approximately 99

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Packet Pg. 264 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Greenhouse Gas (GHG) Emissions Inventories
28 percent of waste emissions and emissions from the use of alternative daily cover (ADC) accounted for less than 1 percent of waste emissions.

Waste emissions result from organic material decomposing in the anaerobic conditions present in a landfill and releasing methane (CH4) – a GHG 28 times more potent than CO2. Organic materials (e.g., paper, plant debris, food waste) generate methane within the anaerobic environment of a landfill while non-organic materials (e.g., metal, glass) do not. Table 4.2 shows the approximate breakdown of the materials East Palo Alto sent to landfills in 2017. Materials that do not release GHGs as they decompose are included in the “Non-organic Material” category.

Table 4.2: Estimated Waste Composition3
Waste Type Waste Share
Non-Organic Material 56.9%
Organic Material 43.10%
Food Scraps 15.5%
Dimensional Lumber 14.5%
Corrugated Containers 4.8%
Officer Paper 1.9%
Grass 1.9%
Leaves 1.9%
Newspaper 1.3%
Magazines/Third Class Mail 0.7%
Branches 0.6%
Wastewater and Water Emissions
Wastewater Treatment Plant emissions are calculated based on the methodologies in the Community GHG Protocol. The wastewater treatment emissions include methane and nitrous oxide, which are considered process and fugitive emissions sources, as well as stationary sources.

The BAAQMD provides a list of stationary source emissions from wastewater treatment plants; these emissions are from stationary combustion sources such as diesel turbines or generators and are added to each plant's emissions total. If the combustion sources are known to be fired by natural gas, they are excluded from this portion of the inventory to avoid double counting, since natural gas combustion sources are included in Energy Emissions section. The use of electricity at wastewater plants is also excluded from this sector to avoid doublecounting, as electricity use is also included in the Energy Emissions section.

In most cases, wastewater treatment plants serve more than one jurisdiction. Thus, emissions from each plant are allocated to the jurisdictions that are served by each plant, using the population of the jurisdictions multiplied by the average emissions per capita of the plants. Reported GHG emissions for all sources are available for some plants but are not available for all plants in San Mateo County. To estimate the wastewater-related emissions for each jurisdiction, the following methodology was used. The average emissions per capita, in metric tons CO2e/person is calculated for the plants for which data are available, and this average-emissions per-capita rate is used to estimate the emissions associated with wastewater treatment for the cities that are served or partially served by those plants. Emissions are estimated by multiplying each jurisdiction's population by the average emissions per capita.

The Community GHG Protocol, includes energy-related emissions associated with water delivery and treatment.

Some of these emissions may occur within the community boundaries; as explained in the Community GHG Protocol, there is risk of some double counting in this emissions sector.

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Packet Pg. 265 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Greenhouse Gas (GHG) Emissions Inventories
29 Water emissions are based on the total estimated embedded electricity use associated with each jurisdiction's water use. All embedded electricity related to water use is assumed to come from PG&E, since most water is sourced from areas within the PG&E service area. The emissions are calculated using the PG&E emission factor for CO2 and state grid-average emission factors for CH4 and N2O.

Wastewater and water emissions together account for just one percent of total 2017 GHG emissions in East Palo Alto.

Future Emissions
East Palo Alto developed a forecast of future emissions (Figure 4.3) to understand what reduction measures are needed to meet the 2030 goal. The forecast starts from the last year a community inventory was developed, which is 2017 for East Palo Alto.

The forecast illustrates the following:
• “Business-as-usual” (BAU) emissions – This projection represents the emissions expected if the 2017 patterns of travel, energy and water consumption, and waste generation/disposal were continued throughout time. This projection factors in the expected rate of county population and job growth (0.88 percent/year). The 0.88 percent growth rate is used a baseline in all BAU projections between 2016 and 2050, stemming from the Association of Bay Area Governments (ABAG) Plan Bay Area 2040 Final Preferred Scenario and Investment Strategy. This growth rate is an average of the projected population growth (0.7 percent per year) and the expected job growth (1.07 percent per year) to occur across San Mateo County. This projection is considered in the absence of any measures, policies, or actions that would reduce emissions over time, including state legislation and/or any other policies or procedures accepted after 2016. Under the BAU scenario, East Palo Alto emissions are projected to increase by 10 percent in 2030 (10,596 MTCO2e) and 25 percent in 2050 (136,462 MTCO2e), relative to 2017. • Adjusted forecast (State measures plus PCE) – This projection incorporates the same factors as the BAU, but also includes key State policies such as clean car standards, renewable portfolio standard, zero net energy building, and organics recycling. It also includes the effect of Peninsula Clean Energy (PCE) operating in San Mateo County. Switching from PG&E to PCE in 2017 gave East Palo Alto an initial 55,538 MTCO2e reduction in energy emissions by providing a cleaner fuel mix for energy generation than the State provided. By 2045, the Renewable Portfolio Standard will have closed that gap by forcing all electricity providers to offer a similarly clean mix of energy. Total emissions are projected to decrease 25 percent from 2017 (26,730 MTCO2e) by 2030 due to state measures plus PCE. It is anticipated this will be exceeded with the goal likely to be reached as early as 2025. • CAP reduction measures – This is the reduction necessary to reach the 2030 goal. In this CAP, East Palo Alto is committing to take the actions needed to meet this goal. Those actions are described in Chapter 5, Strategies and Actions.

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Packet Pg. 266 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Greenhouse Gas (GHG) Emissions Inventories
30 Reductions from State-Level Actions
In addition to City actions outlined below, regulations aimed at reducing GHG emissions at the state and regional levels will also contribute to emissions reductions in East Palo Alto. For example, the California Renewable Portfolio Standard (RPS) mandates that 100 percent of the electricity sold by the State’s investor-owned utilities be generated from renewable resources by 2045, with an interim goal of 60 percent by 2030. The impact of statelevel actions on reducing local emissions is significant and is shown in relation to East Palo Alto’s emissions baseline, business-as-usual forecast, and reduction goal in Table 4.3.

A summary of the expected emission reductions from state programs is provided in Appendix C.3.

Table 4.3: Total Emission Reductions from State of California Policies and Programs State Initiative Sector % Emissions reduction from
applicable sector in 2030
2030 reduction in East Palo
Alto emissions
(MT CO2e)
Advanced Clean Cars Program On-road
Transportation 27.3% 22,057
Low Carbon Fuel Standards Off-road
Transportation 15.9% 939
Caltrain Electrification Trains N/A N/A
Renewable Portfolio Standard Electricity (Energy) 19.3% 1,202 100% Zero Net Energy New Residential 2020 Residential Energy 4.0% 783 50% Zero Net Energy Existing Commercial
2030
Commercial
Energy 19.9% 1,950
Organic Waste Diversion SB 1383 Disposed Waste -8.3% -200 Total Statewide Initiative Emissions Reductions: 26,730

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Packet Pg. 267 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Greenhouse Gas (GHG) Emissions Inventories
31 East Palo Alto’s Contribution to the Goal
East Palo Alto is committing to a 55 percent reduction in per capita emissions below 2005 levels by 2030.

Through this commitment, East Palo Alto will be doing its part in helping California achieve the statewide goal of a 40 percent reduction below 1990 levels by 2030. The emissions reduction required by 2030 below business-asusual projected emissions, 49,887 MT CO2e, is the equivalent to taking 10,778 passenger vehicles off the road for an entire year (Table 4.4).

Table 4.4: GHG Emissions Projection and Reduction Goal
Emission Type 2005 Emissions
Emissions Goal
by 2030 2030 BAU Emissions Emissions Reductions Required Total Community
Emissions (MT
CO2e)
136,027 69,374 119,261 49,887
Per Capita
Emissions (MT
CO2e/person)

4.62 2.09 3.59 1.50

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Packet Pg. 268 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
32 5. Strategies and Actions
5 STRATEGIES

AND ACTIONS

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Packet Pg. 269 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
33 Strategies and Actions
Introduction
This climate action plan (CAP) is a beginning of a journey towards a more sustainable East Palo Alto.In this document, ,East Palo Alto residents will find policies and programs aimed at reducing emissions, conserving energy, and saving residents money. The goal of this CAP is to ensure that East Palo Alto continues to be a beautiful and healthy place to live, work, and play.

By adopting this CAP, East Palo Alto is committing to take action to reduce greenhouse gas (GHG) emissions.

The programs and policies described give East Palo Alto a viable path towards reducing emissions that, combined with emissions reductions resulting from state and regional policies, will meet the emissions reduction goals established in Senate Bill 32 (SB 32) (see Appendix C.2 for more information).

Each section below outlines the specific actions (also known as “measures”) to reduce GHG emissions in East Palo Alto. Some measures reduce emissions from the community at large, while others may specifically focus on the operations of East Palo Alto. Most measures lead to an estimated reduction in GHG emissions that is quantifiable. Some measures are not quantifiable and are consequently considered “supporting measures” because they support the achievement of related, quantifiable measures.

Assessing Impact
In considering which strategies to select, the City considered the GHG reduction potential, cost, and ease of implementation. Selected strategies and their GHG reduction potential were assessed using the RICAPS Menu of Measures Tool.

In addition to reducing GHG emissions, many actions will result in the following positive outcomes:

Criterion Description
Environmental Health Action increases local environmental quality Public Health Action increases health in the community
Financial Benefit Action has economic benefit for the community (i.e., cost savings)

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Packet Pg. 270 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
34 Adaptation Action increases community resilience and ability to adapt to climate change impact and disasters
Equity Action incorporates inclusion and social equity
CAP At-A-Glance
Energy and Water Goal EW.1 Reduce energy emissions, through continued participation in Peninsula Clean Energy, energy efficiency programs, and pilot projects
Goal EW.2 Electrify Building Stock, through new and updated policies for green building and investments in infrastructure that supports deployment of renewable electricity to replace natural gas Goal EW.3 Reduce Water Consumption, through rebates and incentives and enforcement of water conservation ordinances
Transportation
Goal T.1 Reduce Vehicle Miles Traveled in the Community, by offering public transit alternatives and promoting farmer’s markets
Goal T.2 Decarbonize Transportation, by promoting deployment of electric vehicles and supporting infrastructure
Goal T.3 Increase Walkability and Bikeability, by making streets safer and better able to accommodate active transportation modes
Goal T.4. Increase housing in transit corridors, by pursuing smart growth development Solid Waste
Goal W.1 Increase Diversion of Materials from Landfills, by establishing and enforcing policies that promote organic composting and waste diversion

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Packet Pg. 271 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
35 Strategies to Get Us There
The goals and actions presented in this CAP will work together towards achieving East Palo Alto’s goal to attain a 55 percent reduction in per capita emissions below 2005 levels by 2030.

Energy and Water
What Are We Talking About?
In California, buildings account for 70 percent of total electricity use4 and 20 percent of total GHG emissions5. See Appendix B.3 for more information on trends in state emissions. In 2017, buildings in the residential and commercial/industrial sectors accounted for 29 percent of total emissions in East Palo Alto with 80 percent of building emissions resulting from natural gas consumption and 20 percent resulting from electricity consumption.

Electricity and Natural Gas
Electricity and natural gas are the most common energy sources used in buildings. Electricity is primarily used in buildings to provide lighting, refrigeration, ventilation, cooling and to power things like computers, phones, and displays. Natural gas is primarily used in buildings to provide space heating, water heating, and for cooking.

In order to reach East Palo Alto’s 2030 emissions reduction target, natural gas consumption will need to decline significantly through a combination of energy efficiency and electrification. Energy efficiency is simply using less energy to perform the same task; for example, replacing a low-efficiency gas furnace with a high-efficiency gas furnace. Electrification is the practice of replacing equipment in buildings that is powered by natural gas, including gas furnaces and gas water heaters, with electric equipment, such as air source heat pumps and heat pump water heaters.

Connection Between Energy and Water Use
Energy and water use are linked. Energy is needed to transport and to treat water, treat wastewater, and heat hot water in homes and businesses across California. Approximately 20 percent of California’s electricity and approximately 30 percent of natural gas used by homes and businesses across the state is dedicated to pumping, treating, and heating water. Figure 5.1 indicates the 10 percent of energy used to transport and treat water; energy used to heat water is distributed among the various customers.

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Packet Pg. 272 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
36 Figure 5.1: Energy (Electricity and Natural Gas) Used by the Water Sector in California6 How Are We Doing?
Over time, emissions associated with each kilowatt-hour of electricity generation in California have continued to decline as the grid relies less on fossil fuel power generation sources, including coal and natural gas, and more on renewable power generation sources, including solar, wind, and hydropower.

In East Palo Alto, natural gas accounted for 80 percent of building emissions in 2017 while electricity accounted for 20 percent of building emissions. Electricity emissions in East Palo Alto have decreased 68 percent since 2010, primarily due to the City’s enrollment in PCE, and natural gas emissions have decreased 5 percent.

12.2.b
Packet Pg. 273 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
37 Figure 5.2: East Palo Alto 2005–2017 Building Emissions by Fuel Type With the launch of Peninsula Clean Energy, which has a stated goal of all electricity sales being 100 percent GHG-free by 2021, and the State’s requirement through Senate Bill 100 (SB 100) that utilities procure 100 percent of electricity through renewable resources by 2045, the percent of building emissions associated with electricity will continue to decline.

The State of California remains a leader in implementing policies aimed at reducing water consumption. Assembly Bill 1668 (AB 1668) and Senate Bill 606 (SB 606), adopted in 2018, require urban water providers to establish a target for water use by 2022 and threatens fines for agencies failing to meet their goals beginning in 2027.

Standards will be based on an allowance of 55 gallons per person per day for indoor water use, a to-be-determined amount of residential outdoor use, and a standard for water loss due to leak rates in water system pipes.

What Are We Trying to Achieve?
# Goal Target
EW.1 Reduce energy emissions 50 percent reduction compared to 2005 EW.2 Electrify building stock
90 percent of all new buildings constructed to
all-electric standard; existing residential and
office gas equipment is electrified when due for
replacement
EW.3 Reduce water consumption 10 percent of households receive water efficiency upgrades

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Packet Pg. 274 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
38 Goal EW.1:

Reduce Energy Emissions
# Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
2030
Emissions
Reduction
(MT CO2e)
EW.1.1
Participate in
community choice
aggregation
Through Peninsula Clean Energy, the City
will continue to provide greener renewable
electricity to the community and promote
residents and businesses “opting up” to
PCE’s ECO100 (100% renewable) service.

PCE targets 100% renewable by 2025 for
all customers.
2025
Public
Works -
Environmen
tal
Programs
Peninsula
Clean
Energy
(PCE)
2,598
EW.1.2
Promote
commercial
energy efficiency
programs for
existing buildings
Through marketing and outreach, the City
will promote participation in commercial
energy efficiency programs and demand
response programs offered by SMC
Energy Watch and PG&E that result in
15% of non-residential buildings receiving
energy efficiency upgrades. Programs
include PCE and PG&E’s appliance
rebates, 0% financing for energy efficiency
upgrades, and demand response
programs. The City will provide or
encourage commercial energy audits
during annual Clean City Plan inspections.

The City will consider supplementing
existing efficiency incentives and rebates
by seeking grants and/or partnerships that
support this effort.
2023
Public
Works -
Environmen
tal
Programs
San Mateo
County
(SMC)
Energy
Watch
62 CiEW.1
.3
Promote
residential energy
efficiency
programs for
existing buildings
Through marketing and outreach, the City
will promote participation in residential
energy efficiency programs that result in
5% of residential buildings receiving
energy efficiency retrofits. Programs
include BayREN’s Home Upgrade
program and PG&E’s efficient appliance
rebates. The City will provide or encourage
residential energy audits. The City will
consider supplementing existing efficiency
incentives and rebates and seek grant
partnerships such as Climate Resilient
Communities and Grid Alternatives to
further this effort.
2023
Public
Works -
Environmen
tal
programs
Bay Area
Regional
Network
110
How Do We Get There?

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Packet Pg. 275 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
39 # Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
2030
Emissions
Reduction
(MT CO2e)
EW.1.4
Implement
programs for free
or subsidized
shade trees
The City will continue to implement a
program to reduce energy consumption
associated with cooling homes through the
provision of free or subsidized shade trees
for buildings with eastern, western or
southern exposures, with consideration of
future interest in solar installations and
shading potential. The City is currently
implementing this program with Canopy
contract and CALFIRE grants. Full
implementation would result in 5% of all
households receiving shade trees.

Consider expanded large tree planting
near high traffic corridors including
highway 101 and University Avenue to
buffer from air quality impacts from
traffic.This contract is valid for 2 years
beginning in 2022, with the possibility of
extension.
2022
and
beyond
Public
Works -
Environmen
tal
Programs
Canopy,
CALFIRE 4
EW.1.5
Promote
opportunities for
microgrid
demonstration
projects
The City has started work with
stakeholders, such as local healthcare
facilities, police station, fire department
and other critical facilities, to identify
potential sites for a microgrid
demonstration project. The City will
continue to provide education and
outreach to these stakeholders on the
multiple benefits of developing a microgrid,
including continuity of service in
emergencies, reliability, cleaner energy
and cost savings.

Successful implementation of this measure
would result in 1 microgrid project every 2
years.
2025
Public
Works -
Environmen
tal
Programs
Menlo Park
Fire
Protection
District
357
EW.1.6
Encourage
pairing battery
storage with all
solar PV systems
The City will provide education and
outreach to stakeholders, including
businesses, residents and contractors, on
the benefits of pairing battery storage with
solar PV systems.
2023
Public
Works -
Environmen
tal
Programs
GRID
Alternatives,
Rebuilding
Together,
Climate
Resilient
Communitie
s (CRC)
619

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Packet Pg. 276 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
40 # Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
2030
Emissions
Reduction
(MT CO2e)
EW.1.7
Policy to prohibit
gas powered
lawn equipment
engine exhaust,
all leaf blowers,
and wood/
charcoal burning
devices on
Spare-the- Air
Days
California will ban “small off-road engines”
(SORE) primarily used in gas-powered
lawn equipment, such as leaf blowers and
lawnmowers, in a law signed by Governor
Gavin Newsom, Nov. 2021. The bill, AB
1346, directs California's Air Resources
Board to draw up regulations that will go
into place by 2024. Approximately 20 cities
have banned leaf blowers, outright.

This local policy intends to restrict the use
of those most hazardous noxious
emissions and fine particulate matter for
the protection of those who may
experience respiratory issues on Sparethe-Air days. This policy can serve to bring public awareness regarding such
emissions. The City will encourage usage
of buy-back programs for SORE offered by
county, state, or community organizations,
as well as inform residents of rebates or
incentives offered by CARB to meet goals
outlined in AB 1346.
2024
Public
Works -
Environmen
tal
Programs
San Mateo
County
Public
Health
Supportive
EW.1.8
Participate in
incentive
programs through
Commute.org
Promote bicycle and carpool incentive
programs through Commute.org providing
rewards for commuting via bicycle and/or
carpool with incentives according to
availability.
2024
Public
Works -
Environmen
tal
Programs
Commute.or
g
Supportive
EW.1.9
Support
partnerships that
bring awareness
to air quality
monitoring
Stanford study with Acterra/CRC on indoor
air pollution began with a pilot of 30
families in February 2022, and will expand
to 420 families, with 100 indoor air quality
monitors distributed to individual
households, with personal monitors,
weather stripping, sleep monitors and air
purifiers as supportive solutions.
2022
Public
Works -
Environmen
tal
Programs
Stanford,
Acterra/
CRC,
Nuestra
Casa, El
Comitte
Supportive
EW.1.1
0 Install energy
efficient
streetlighting
City replaces street lighting – including
signal, park and parking lots – with
efficient LED lighting.

Comple
ted 2
EW.1.1
1 Participate in
community choice
aggregation
(Municipal
facilities)
Through Peninsula Clean Energy, the City
will continue to provide greener renewable
electricity to municipal facilities. The City
will also "opt up" to ECO100 service in all
municipal facilities.

Comple
ted 26
EW.1 Sub-total (MT CO2e) 3,779

12.2.b
Packet Pg. 277 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
41 Goal EW.2: Electrify Building Stock
# Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
Emissions
Reduction
(MT CO2e)
EW.2.1
Expand allelectric
building
policy
The City has updated its building code to
mandate that new residential and commercial
construction projects be built to an all-electric
standard, including electric heating, cooling, and
water heatinge, resulting in a minimum of 50% of
residential and commercial choosing all-electric
path. After the 2023 code cycle, the City plans to
remove exemption for accessory dwelling units
from the existing electrification reach code to
maximize GHG emissions reductions from this
action and ensure low-income residents receive
the benefits of the action.
2023-
2025 CED PCE 2,362
EW.2.2
Develop an
existing
building
electrification
strategy
(EBES) to
aid in
development
of an existing
building
electrification
ordinance for
residential
and office
buildings
The EBES should:

1. Include a detailed existing building analysis to
understand current natural gas end uses and
scenarios to electrify

2.Include an electrification costs analysis that
explores the up-front costs of electrification as
well as ongoing energy costs for the end user
(homeowners, landlords, renters, office building
owners) after electrification

3.Consider impacts to renters, renter/landlord
dynamics

4.Identify potential impacts to electrical grid
resiliency

5.Identify and develop protections against
potential equity concerns/impacts of electrification

6.Identify funding and financing opportunities for
residential electrification

7.Identify the City staff resources needed to
enforce a new electrification ordinance
2023-
2024
Public
Works -
Environ
mental
Progra
ms
PCE; SMC Supportive
EW.2.3
Develop
partnerships
for EBES
development
Identify and partner with local community-based
organizations with connections to low-income and
fixed income people, communities of color,
elders, disabled individuals with access needs to
assist in development of the EBES.
2023-
2024
Public
Works -
Environ
mental
Progra
ms
Nuestra
Casa, YUCA,
El Concilio,
Samaritan
House South
Supportive
e Assumes “No new gas” policy

12.2.b
Packet Pg. 278 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
42 # Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
Emissions
Reduction
(MT CO2e)
EW.2.4
Conduct
community
engagement
for the EBES
Conduct engagement efforts for the general
public and targeted to low-income people, fixedincome residents, and communities of color during development of the EBES to understand
the community's concerns around electrification.
2023-
2024
Public
Works -
Environ
mental
Progra
ms
Nuestra
Casa, YUCA,
El Concilio,
Samaritan
House South
Supportive
EW.2.5
Adopt an
electrification
ordinance for
existing
residential
and
commercial
buildings
Coordinate with BAAQMD proceeding on rules 9-
4 and 9-6. Ban expansion of gas infrastructure
and require replacement of HVAC systems, hot
water heaters, and other appliances in residential
and small office buildings to be all-electric at time
of replacement and major renovation. Implement
the ordinance through the building permit
process. The City will leverage incentives
provided by PCE to encourage residential and
office buildings to upgrade electric panels to
accommodate all-electric technologies including
solar PV, battery storage, air source heat pumps,
heat pump water heaters, electric dryers, electric
stoves and EV chargersf.
2027
Public
Works -
Environ
mental
Progra
ms
PCE,
BAAQMD 7,238
EW.2.6
Define equity
metrics for
existing
building
electrification
ordinance
enforcement
Define equity metrics for ordinance enforcement
based on feedback from low-income and fixedincome residents, and communities of color and structure the ordinance to meet these metrics.

Equity metrics should be designed to prevent
displacement and ensure that end-user energy
costs for low-income populations will not be
greater after electrification than before. Seek
funding through PCE for community outreach.
2024-
2025
Public
Works -
Environ
mental
Progra
ms
CRC; PCE;
YUCA Supportive
EW.2.7
Develop
partnerships
to fund
existing
building
electrification
Seek out funding partnerships with local
financiers and work with partners such as PCE
and BayREN to fund a program specifically for
decarbonization retrofits, such as a local turnkey
retrofit program that leverages existing funding,
which offers low-cost financing of electrification
and energy efficiency retrofits for residents and
local businesses.
2022-
2024
Public
Works -
Environ
mental
Progra
ms
PCE,
BayREN;
Rebuilding
Together;
GRID
Alternatives,
Etc
Supportive
f Assumes 40 percent of commercial buildings are office space

12.2.b
Packet Pg. 279 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
43 # Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
Emissions
Reduction
(MT CO2e)
EW.2.8
Develop a
temporary
staff position
to support
existing
building
electrification
Create a new staff position dedicated to
understanding, streamlining, and expanding
energy and electrification turnkey, rebate, and
financing programs (e.g., PACE and utilityoffered incentive programs). Staff would also be responsible for supporting residents with rebate
applications, with a focus on low-income
residents.
2024-
2026
Public
Works -
Environ
mental
Progra
ms
PCE Supportive
EW.2.9
Establish a
building
performance
standards
program for
multifamily
and
commercial
building
Develop and implement a building performance
standards program by 2025 for multifamily and
commercial buildings such as in Boston, New
York City, and/or Denver. Introduce annual
energy auditing and reporting requirements,
energy efficiency retrofits, and finally
electrification retrofits over time. Leverage and
publicize resources available through BayREN
and PCE to support the program. This could be
implemented through a partner such as PCE.
2025
Public
Works -
Environ
mental
Progra
ms and
CEDD

RICAPS,
BayREN Supportive
EW.2.10
Partner with
PG&E on
infrastructure
pruning
Work with PG&E to identify opportunities for
natural gas infrastructure pruning to reduce the
chance of stranded assets (functional natural
gas infrastructure with ongoing maintenance
costs that has become obsolete due to
electrification)
2023
Public
Works -
Environ
mental
Progra
ms
PCE Supportive
EW.2.11
Expand
partnerships
that bring
awareness to
air quality
monitoring
and appliance
replacement
or substitution
Consider potential grants to expand the Stanford
study (EW.1.9) extensive supportive solutions
such as providing air quality monitors and 50
induction stoves for replacement/ substitution in
rental homes with gas appliances to reduce
reliance on gas appliances and provide
alternative solutions with co-benefits of
improved indoor air quality.
2022
Public
Works -
Environ
mental
Progra
ms
Stanford,
CRC,
Nuestra
Casa, El
Comitte’
Supportive
EW.2 Sub-total (MT CO2e) 9,600
Want to Electrify Your Home? Plan Ahead
Converting your existing home to all-electric would be an expensive proposition if you did it all at once. That’s why it’s something you should do as natural opportunities arise, such as when appliances like your furnace and hot water heater need to be replaced. When they’re near the end of their life, do some homework so you’re prepared to switch to an electric model when the time comes, and take advantage of electrification incentives from BayREN
(http://www.bayrenresidential.org/). Meanwhile, consider upgrading your electric panel to get ready. You can also opt up to Peninsula Clean Energy’s Eco100 rate. For as little as $4 more per month, you’ll be supporting 100 percent renewable electricity.

Goal EW.3: Reduce Water Consumption

12.2.b
Packet Pg. 280 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
44 # Action Implementation
Considerations Co-benefits Time-frame Lead Community Partner Emissions
Reduction
(MT CO2e)
EW.3.1
Partner and
promote water
efficiency programs
with local non-profit
entities. Promote
existing residential
water conservation
rebates and
services
The City will promote BAWSCA or Cal
Water residential water conservation
rebate programs that offer rebates for
items including high efficiency washing
machines and toilets, rain barrels,
sprinkler nozzles, irrigation controls and
Lawn Be Gone (drought tolerant
landscapes). The City will consider
supplementing existing rebates and
services.

Successful implementation of this
measure would result in 10 percent of
households receiving water efficiency
upgrades. Partner with Climate Resilient
Communities in partnership with
Grassroots Ecology, for landscape
efficiency upgrades, cisterns and low
water use landscaping to reduce
landscaping irrigation demands. Pilot will
Install 25 raingardens with cisterns as
demonstration sites at low-income
households. Seek further opportunities to
expand programs to reach additional
households with these and other
partners.
2023-2025
Public
Works -
Environ
mental
Progra
ms
CRC,
Grassroots
Ecology,
BayRen, SSV
86 EW.3.2
Develop initiative to
ensure enforcement
of Water Efficient
Landscape
Ordinance
The State Department of Water
Resources requires cities in California to
enforce a Water Efficient Landscape
Ordinance or local ordinance that is at
least as effective as the State’s model
ordinance. Provide enforcement and
issues fines to ensure compliance with
ordinance.

Water efficient landscaping policies are
already in place and required on any new
project that requires a permit in the City.

Successful implementation of this
measure would result be a 90 percent
household compliance rate.
2022

COMPLET
ED
Public
Works -
Environ
mental
Progra
ms.,
Engine
ering,
Buildin
g
Depart
ment
Plannin
g
Veolia Water 16
EW.3 Sub-total (MT CO2e) 102
Energy and Water Total (MT CO2e) 13,742

12.2.b
Packet Pg. 281 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
45 EW.4 Protect low-income residents from extreme heat
# Action Co-benefits Time-frame Lead Community
Partner
Emissions
Reduction
(MT CO2e)
EW.4.
1 Conduct an extreme heat study to understand the
potential future impacts of extreme heat on local underserved communities and identify opportunities for extreme heat mitigation in those areas.
2024-
2025
Public
Works -
Environment
al Programs
CRC,
YUCA,
Stanford
Supportive
EW.4.
2 Work with local community-based organizations to
identify and understand the application process
associated with funding and financing opportunities for converting residential furnaces and air conditioners to heat pumps in low-income housing.
2024
Public
Works -
Environment
al Programs,
with consult
by CED
PCE,

SMC, EPA
CanDo,
Eden
Housing,
MidPenn,
etc
Supportive
EW.4.
3 Work with local community-based organizations to
educate local low-income communities about the
dangers of extreme heat, and opportunities for
retrofitting their homes with heat pumps and improving
insulation as ways to avoid the most dangerous
impacts of extreme heat.
2024
Public
Works -
Environment
al Programs
CRC,
YUCA,
Nuestra
Casa,
GRID
Alternative
s,
Rebuilding
Together,
Habitat for
Humanity
Supportive
Dry Up Household Water Waste
Did you know that the energy use related to water — transporting, cleaning, and heating it — consumes 19 percent of California's electricity and 30 percent of its natural gas every year? We’ve all learned the importance of taking shorter showers, and installing lowflow shower heads, low-flow aerators on faucets, and low-flush toilets to save water. But don’t forget outside, too, since half of California’s residential water use goes toward landscaping7 and half of all water wasted in the United States is due to poorly managed and maintained irrigation systems.8 ReScape California (https://rescapeca.org/) is a nonprofit that provides resources for selecting low-water plants, conserving water, and fostering soil health.

12.2.b
Packet Pg. 282 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
46 Transportation and Land Use
What Are We Talking About?
In California, 41 percent of total GHG emissions stem from transportation. The vast majority of transportation emissions are from on-road vehicles, the cars and trucks that move people and goods through the state. In East Palo Alto, 74 percent of emissions come from transportation sector. Travel on local roads represent 24 percent of total transportation emissions, while travel on state highways make up 69 percent. Off-road emissions (from residential uses) account for the remaining 2 percent of transportation emissions.

Carbon Intensity of Fuels, Vehicle Efficiency, and Vehicle Miles Travelled Reducing emissions from the transportation sector requires addressing three constituent components: 1) reducing the carbon intensity of fuels, 2) increasing vehicle efficiency, and 3) reducing vehicle miles travelled (VMT). The two main fuels, gasoline and diesel, used to power vehicles across the state, have a very high carbon intensity.

Transitioning to lower carbon intensity fuels, especially electricity, is key to reducing emissions in the transportation sector. Similar to electrification of fossil fuel equipment in buildings, as the electricity grid continues to rely more heavily on renewable energy sources for electricity generation, the emissions reduction potential of replacing gasoline and diesel vehicles with electric vehicles continues to increase.

The Challenges of Reducing VMT and Associated Co-benefits Fully understanding the factors that lead to increased VMT is challenging, but the contributors include the following: economic growth, lack of affordable housing near urban cores, urban sprawl, lack of viable public transportation options, cheap gasoline, and streets that discourage pedestrian or bicycle access.

The benefits of integrated planning and sustainable development go far beyond simply reducing the GHG emissions that contribute to climate change and its damaging effects. Communities that are well designed provide housing options for all income and age groups and enable community members to use a range of transportation options that reduce congestion, improve air quality, and increase economic development.

How Are We Doing?
As of 2019, electric vehicles made up 7.8 percent of total new car sales in California.9 Efficiency of gasoline and diesel vehicles, in terms of miles per gallon (MPG), continues to increase. For model year 2017, the average fuel economy of new vehicles sold in the United States reached 24.9 MPG – a record high.10 However, addressing the third component, reducing VMT, is considerably more difficult than the previous two. Californians have driven more and more miles per year over the past five decades. Figure 5.3 demonstrates the growth in VMT within East Palo Alto between 2005 and 2017.

12.2.b
Packet Pg. 283 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
47 Figure 5.3: East Palo Alto 2005–2017 Total Vehicle Miles Traveled What Are We Trying to Achieve?
# Goal Target
T.1 Reduce vehicle miles traveled in the
community
Reduce VMT by 0.8 percent compared to BAU
by 2030
T.2 Decarbonize transportation
Increase EV ownership and EV charging
stations so EV passenger cars make up 6
percent of total vehicle VMT
T.3 Increase walkability and bike ability 6 miles of bike lanes and bike parking provided in over 50 percent of non-residential locations
T.4 Increase housing in transit corridors

43.1-86 units/ acre or 150 to 300 persons/
acre. Maximum height 7 stories and 75 feet.

Up to 2.5 FAR with increases allowed to
permitted density/intensity and height for
projects that provide income-restricted
affordable housing targeted to the income
levels of current residents and in excess of
requirements in current regulations.

12.2.b
Packet Pg. 284 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
48 How Do We Get There?
Goal T.1: Reduce Vehicle Miles Traveled in the Community # Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
2030 Emissions
Reduction
(MT CO2e)
T1.1
Support the
establishment or
expansion of local
shuttle service
The City will encourage establishment of a
local shuttle service. The City work with
partners to apply for grant funding from
C/CAG and work with the County
Transportation Authority (Alliance) to fund
local shuttles, as applicable.

Successful implementation would expand
the City’s transit network coverage by 50%.

This action is being considered on a
regional basis with the City's transportation
consultants and future developers.
2026
Public
Works,
CEDD

SAMTRAN
S/ Alliance/
C/CAG
258
T1.2
Encourage and
incentivize e-bike
and e-car sharing
companies to
operate in the City
The City will develop policies and incentives
that attract e-bike and e-car sharing
companies to establish or expand service in
the City, ensuring that there is an e-bike
and e-car sharing program in place in 2030.

Focus on placing hubs near neighborhood
entry points.
2030 Public
Works
C/CAG/
SAN
Mateo
County
217
T1.3a
Enhance
infrastructure to
promote shared
electric bikes and
scooters
Modify existing city infrastructure to
accommodate shared electric bikes and
scooters that provide last-mile solutions to
residents and commuters. Infrastructure
enhancements including dedicated offstreet parking spaces and on-street corrals to accommodate shared electric bike and
scooter parking and prevent conflicts with
pedestrians.
2023-
2030
Public
Works -
Environ
mental
Program
s
SMC 385
T1.3b
Enhance City
policies to promote
shared electric bikes
and scooters
Modify existing city policies to specifically
accommodate shared electric bikes and
scooters to utilize public infrastructure.
2023-
2025
Public
Works -
Environ
mental
Program
s
SMC
RICAPS Supportive

12.2.b
Packet Pg. 285 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
49 # Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
2030 Emissions
Reduction
(MT CO2e)
T1.4
Expand programs
that provide bicycles
at free or reduced
costs to residents,
with bicycle safety
training
The City will support programs, such as the
Live in Peace Bike Shop Program,
supporting bicycle repair, community bike
rides, bike rodeos, bike clubs and bike
racing team, giving away more bicycles and
training additional residents to be certified in
bike mechanics, along with program
expansion to expand residents access to
bicycles in the community and supporting
schools to reduce ICE trips.
2023
Public
Works -
Environ
mental
Program
s
LIP,
C/CAG/
SAN
Mateo
County,
RCSD
Supportive
T1.5 Free public transit
program
Expand free public transit Clipper Card pilot
program that provides free public transit to
students, foster youth, and unhoused youth
in East Palo Alto.
2024-
2025
Public
Works -
Environ
mental
Program
s, CEDD
El Concilio,
Samaritan
House
South,
SamTrans,
etc
Supportive
T1.6
Adopt ordinance to
require employers to
develop TDM plans
Adopt ordinance to require medium to
large-sized employers (25 employees or
more) to develop a Transportation Demand
Management (TDM) Plan. TDM plans
should include subsidies for employees to
bike, walk, or carpool, and provide free
transit passes for all employees
2022
COMPL
ETED
Public
Works,
CEDD
Developer
s
Supportive
T1.7
Encourage free
micro-mobility in new
multi-family
development
Encourage new multi-family development
projects to install a car share, bike share, or
scooter share for residents to use freely as
a part of their comprehensive TDM Plan.

The TDM Plan shall be required for all new
development that meets the threshold in the
City’s TDM Ordinance. The City has hired a
TDM coordinator that will begin enforcing
the program.
2024
Public
Works,
CEDD
Developer
s
Supportive
T1.8 Free e-bike pilot
Pilot a program to provide free or reducedprice access to e-bikes or other micro mobility options to low-income residents
and students.
2024-
2027
Public
Works -
Environ
mental
Program
s
PCE, El
Concilio,
Samaritan
House
South,
SamTrans,
etc
Supportive
T.1 Sub-total (MT CO2e) 860

12.2.b
Packet Pg. 286 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
50 Goal T.2: Decarbonize Transportation
i Assumes the fee per mile ICE TNC trip is $0.80
#
Action Implementation
Considerations Co-benefits Time-frame Lead Community Partner 2030 Emissions
Reduction
(MT CO2e)
T2.1
Increase electric
vehicle
ownership
The City will establish an overarching
community target for adoption rate of
electric vehicles that results in 6% of all
community VMT from electric vehicles.

The City can encourage use of the State
Cash for Clunkers program & PCE rebates
for new/used EV purchasing.
2022-2030
Public
Works -
Environ
mental
Program
s

CRC, PCE,
Grid
Alternatives,
Rebuilding
Together
11 T2.2
Encourage
expansion of EV
charging
infrastructure
through
incentives and
partnerships
Leverage incentives from PCE and
develop public and private partnerships to
fund expanding charging infrastructure in
existing public properties, multi-unit
dwellings (20%) and workplaces (10%).

Goal: 100 publicly accessible Level 2 and
3 EV charging stations by 2030. All
publicly accessible charging stations
should be accessible to City residents.
2030
Public
Works -
Environ
mental
Program
s, CEDD
PCE 4,129
T2.3
Survey EV
charging
network
Conduct a survey of existing publicly
accessible electric vehicle chargers and
their locations and identify a prioritized list
of locations for new electric vehicle
charging stations with particular
consideration for equitable distribution of
chargers to residents of multi-family
homes, low-income people, people on a
fixed income, and communities of color.
2024
Public
Works,
Dept.

Environ
mental
Program
s
PCE Supportive
T2.4
Establish
commercial and
residential EV
charging
ordinance
Update residential and commercial
building code to increase the mandated
percentage of EV parking spaces.

Adopt the current Title 24 CalGreen Tier 2
EV Charging Requirements.

Reach
Code
adopted in
2020 (new
buildings)
Commu
nity and
Economi
c
Develop
ment
Departm
ent -
Building
Division
PCE 1,090
T2.5
Develop policies
to encourage the
use of EV TNCs
in the
community
Create a program that will utilize funds TBD
Public
Works
and
Transpor
tation
Departm
PCE,
commute.or
g
1,177i

12.2.b
Packet Pg. 287 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
51 g
Internal combustion engine vehicle. ICE vehicles are usually powered by fuels such as gasoline or diesel. h Transportation network company. Lyft and Uber are two examples. generated by fees on ICEg TNChrides to
provide discounts on EV TNC rides.

Provide designated drop-off ADA
accessible locations and charging
locations for EV TNCs to facilitate EV
adoption. Include in Capital Improvement
Plan; Implementation of EV Charging.
ent
T2.6 Advocate for EV
car share
Support electric vehicle (EV) car share
companies in coming to East Palo Alto;
collaborate with neighboring jurisdictions
and the County to do the same to create a
larger connected network of EV car share.
2023
Public
Works
and
Transpor
tation
Departm
ent
PCE Supportive
T2.7
Pursue EV car
share for priority
housing
Pursue affordable, electric vehicle (EV) car
share to serve affordable housing and/or
multifamily developments with a priority to
target low-income, fixed-income, renters,
residents in multi-unit housing, and
communities of color.
2023
Public
Works
and
Transpor
tation
Departm
ent
Supportive
T2.8
Review and
improve local EV
adoption rates
Review electric vehicle (EV) adoption rates
based on demographics of East Palo Alto
to identify ways to improve EV adoption
(e.g., renters, low-income communities,
communities of color). Based on the
results, conduct targeted outreach to
groups to identify barriers and concerns of
potential EV drivers. Work with
community-based organizations to target
outreach and program planning to reduce
barriers for EV adoption among groups
with low participation rates.
2023-2025
Public
Works
and
Transpor
tation
Departm
ent
Supportive
T2.9
EV education for
priority
communities
Review electric vehicle (EV) adoption rates
based on demographics of East Palo Alto
to identify ways to improve EV adoption
(e.g., renters, low-income communities,
communities of color). Based on the
results, conduct targeted outreach to
groups to identify barriers and concerns of
potential EV drivers. Work with
community-based organizations to target
outreach and program planning to reduce
barriers for EV adoption among groups
with low participation rates.
2023-2030
Public
Works
and
Transpor
tation
Departm
ent
PCE Supportive
T2.10 EV on-bill
financing
Work with PCE and PG&E to incentivize
electric vehicle charger installations
through on-bill financing.
2023-2030
Public
Works
Departm
ent,
Environ
PCE, PG&E Supportive

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Packet Pg. 288 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
52 mental
Program
s
T2.11 Commercial EV
incentives
Identify and implement incentives for
commercial fleet electrification. This could
include local tax breaks.
2023-2030
Public
Works
Departm
ent,
Environ
mental
Program
s
Supportive
T.2 Sub-total (MTCO2e) 6,406

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Packet Pg. 289 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
53 Goal T.3: Increase Walkability and Bikeability

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Packet Pg. 290 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
54 # Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
Emissions
Reduction
(MT CO2e)
T3.1
Develop
walkable
and
bikeable
street
landscape
locations
Modify landscaping to make walking and biking more
desirable. Include a green slow safe street network
where feasible.

Install bike lanes, bike parking, traffic calming
measures, along 100% of all new or significantly
updated major arterial, arterial, and collector roadways, when roadway widths accommodate plant with native
and habitat-friendly tree canopy/ shade cover,
whenever feasible, etc.j
Actions are included in, and will be implemented
through, the Green Infrastructure Plan and the Bicycle
Master Plan.

Ongoing Public
Works
Private
Developm
ent
Live in
Peace
1,099
T3.2
Establish
parking
policies
that
encourage
public
transit,
biking, and
walking
The incoming Sustainability Coordinator will survey
current City parking policies and draft a plan to
implement new parking policies including metered
parkingkreducing parking requirements for new
development to encourage alternative forms of transit,
and "unbundling" sales/leases of parking space from
building space to increase use of public transit, biking, and walking.
2026
Public
Works,
CEDD -
Planning
MFD
owners 1,494
T3.3
Support
Safe
Routes to
School
Program
Support the City's Safe Route to Schools program by
investing in enhancing bike trails and safe pedestrian
routes to local schools.l Promote the program through
collaboration with schools, hosting of events and
outreach to increase volunteer participation.

Action will be implemented through the Bicycle Master
Plan.

Ongoing
Public
Works,
Commu
nity
Services
Live in
Peace,
Safe
Routes to
School,
Silicon
Valley
Bicycle
Coalition,
Ravenswo
od City
School
District
30 T3.4
Equitable
bicycle and
pedestrian
network
Plan for equitable access to safe bicycle and
pedestrian infrastructure in all areas of the city.

Prioritize bicycle and pedestrian infrastructure projects in low-income communities and areas in the city with
less existing bicycle and pedestrian infrastructure,
especially sidewalks.
2023-
2030
Public
Works -
Engineer
ing
Supportive
T3.5
Bike
parking
improveme
nts
Improve the bike/e-bike parking network to reduce theft and increase rider attraction. This would include
surveying existing bike parking facilities throughout the city and developing a plan to improve these with
preference given to improving bike/e-bike parking
facilities near public transit stops to improve and
expand access to transit (i.e., first- and last-mile
access)
2023-
2025
Public
Works -
Engineer
ing
Supportive
T.3 Sub-total (MT CO2e) 2,623

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Packet Pg. 291 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
55 What Would It Be Like?
Many of us drive our cars for short trips. We drive three blocks to work out at the local gym, we drop off our teenager at a friend’s house in the neighborhood, or we move our car to park near the entrance of the next store on our list of errands. Some short car trips are necessary; for example, health and mobility issues might limit our ability to walk. Other times, driving is convenient: when we’re in a hurry, if it’s cold or raining, or if we have a lot of groceries to carry. However, some short car trips might be easily made by foot or bike. What if we all chose to walk or bike for just half of our car trips of under a mile?
If we all chose to power half of these short trips with our feet instead of petroleum, assuming an average fuel economy of 22 mpg and an average fuel price of $2.50/gallon, we would save about $575 million in fuel costs and about 2 million metric tons of CO2 emissions per year. That’s like taking approximately 400,000 cars off the road each year. The total financial savings are even bigger — almost $900 million dollars — when you include savings on maintenance and tire replacement.11 j Assumes calming measures and bike parking in place and 12 miles of bike lanes per City’s 2017 bike master plan k
Including a 25 percent increase in on-street parking and $25 monthly parking fee l Assumes roundtrip distance from residential to school is 2 miles

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Packet Pg. 292 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
56 Goal T.4: Increase Housing in Transit Corridors
# Action Implementation
Considerations Co-benefits Time-frame Lead Community Partner Emissions Reduction
(MT CO2e)
T4.1
Establish and
implement smart
growth development
policy
Continue to
enforce and
pursue the City’s
smart growth
policy, outlined
in the City
General Plan.

Smart Growth
prioritizes infill,
higher density,
transportationoriented
development
and mixed-use
development.

This policy leads
to walkable
neighborhoods
that do not rely
on personal
automobiles as a
primary mode of
transit.
2022
Communi
ty and
Economic
Develop
ment
Departme
nt
Developers 15
T.4 Sub-total (MT CO2e) 15
Transportation and Land Use Total (MT CO2e) 9,904

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Packet Pg. 293 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Strategies and Actions
57 Solid Waste
What Are We Talking About?
In California, 2 percent of total GHG emissions are generated from the disposal of waste. While it may not be immediately obvious, reducing the amount of waste deposited into the landfill through material reuse, reduction, and recycling is an important strategy East Palo Alto residents can take to reduce GHG emissions.

When organic material, including food and wood products, are sent to landfills they release methane as they slowly decay over time. While some landfills capture as much methane as possible and combust it for electricity generation, many landfills leak or “flame” methane, a potent GHG, directly into the atmosphere.

How Are We Doing?
Although composting programs have begun to decrease the amount of organic material sent to landfills, organic material still accounts for 37.4 percent of all materials sent to landfills in California. Because organic materials sent to landfills release methane directly into the atmosphere, increasing the percentage of organic materials that are sent to dedicated composting facilities is critical to reducing emissions in the waste sector.

What Are We Trying to Achieve?
# Goal Target
W.1 Increase diversion of materials from landfills Achieve 85% diversion rate by 2030 How Do We Get There?
Goal W.1: Increase Diversion of Materials from Landfills # Action Implementation Considerations Co-benefits Timeframe Lead Community Partner
2030 Emissions
Reduction
(MT CO2e)
W1.1 Achieve a higher
waste diversion rate
Achieve 85% diversion rate by
establishing mandatory residential
organics recycling ordinance,
ensuring enforcement of State’s
Mandatory Commercial Organics
Recycling Ordinance, and establishing
sustainable vendor policy for public
events. May need to institute penalties
for non-compliance.
2030
Public
Works -
Environm
ental
Programs
CalRecycl
e Recology
ReThink
Waste
27 Solid Waste Total (MT CO2e) 27

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Packet Pg. 294 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Implementation
58 6. Implementation
6 IMPLEMENTATION

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Implementation
59 Implementation
The preceding chapters describe the principal sources of East Palo Alto’s GHG emissions and related goals and actions for achieving the community’s goal of reducing per capita emissions 55 percent below 2005 levels by 2030. This section outlines the main components of the process for putting this CAP into action and identifies specific actions from earlier sections that are recommended for implementation (Table 6.1).

By the Numbers: Meeting the Emissions Goal
Table 6.1: Meeting the 2030 Emissions Goal
State Initiative Sector Impacted 2030 BAU Emissions in
Sector (MT CO2e)
% Reduction from
2030 BAU in Sector
Reduction in City’s
Emissions by 2030
(MT CO2e)
Reduction in City’s Per
Capita Emissions by 2030
(MT CO2e/person)
Advanced Clean
Cars Program Transportation 80,656 27.3% 22,057 0.66
Low Carbon Fuel
Standard Transportation 5,903 15.9% 939 0.03
Renewable
Portfolio
Standard
Electricity (Energy) 6,240 19.3% 1,202 0.04
ZNE 100% New
Residential
Construction by
2020
Residential Energy 19,442 4.0% 783 0.02
ZNE 50%
Existing
Commercial
Construction by
2030
Non-Residential
Energy 9,806 19.9% 1,950 0.06
Organic Waste
Diversion SB
1383
Disposed Waste 2,403 -8.3% -200 -0.01
A. Total Expected Statewide Initiative Emissions Reductions 26,730 0.81 B. Total Expected East Palo Alto’s Climate Action Plan Reductions Measures 23,412 0.71 Energy and Water Emissions Reduction 13,742 0.41
Transportation Emissions Reduction 9,904 0.30
Solid Waste Emissions Reduction 27 <0.01
C. Total Expected Emissions Reductions by 2030 (A+B) 50,142 1.52 D. East Palo Alto’s Emissions Reduction Requirement for 2030 49,887 1.50 G. Meets/exceeds CAP goals? (F > E) YES YES

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Packet Pg. 296 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Implementation
60 Getting It Done: Managing the Strategy
Support will be needed to direct the implementation of the CAP measures. This section details how the city will organize itself to put this CAP into action.
• Expand Environmental Programs – The City will expand staffing capacity of the Environmental Programs, to include dedicated responsibility for implementation of this CAP as 0.50 full time equivalent position for CAP-related business.
• Establish a Climate Action Task Force (CATF) – Create an environmental/sustainability committee to provide input for the implementation of the Climate Action Plan, Clean City Plan, Green Infrastructure Plan, and Sea Level Rise, along with related vulnerability issues. Potential to utilize the Community Climate Change Team which has been involved in these efforts for multiple years. Other avenues include expansion of the Public Works and Transportation Committee (i.e. update jurisdiction to Public Works, Transportation and Sustainability) to provide and expanded purview to include these matters pertaining to sustainability.
• Roles and Responsibilities—The responsibilities of the efforts regarding environmental sustainability practices and climate action require direct action to implement. Reviewing projects in a comprehensive manner to ensure all aspects are implemented into future developments, new city streets, and updated and new parks.

Better Together
Meaningful climate planning and action is grounded in the needs and priorities of community residents and stakeholders. COVID-19 has brought about significant changes to our daily lives and work and shifted individual focus. From paying rent and taking care of families to managing health care and other urgent priorities, community members have little time to focus on climate planning. Nevertheless, it remains critical to continue engaging with the public to ensure their input informs decisions that will impact our community for years to come.

The City of East Palo Alto partnered with the Institute for Local Government (ILG) to carry out public participation approach to engage a community grappling with economic hardship and health crisis. Comprised of city staff with minimal bandwidth to co-lead this engagement and ILG staff, the project team implemented the approach over a short timeline and with a small budget provided through ILG’s in-kind services.

Public engagement methods included a combination of online surveying, phone interviews with key stakeholders, ongoing dialogue with the Community Climate Change Team (CCCT) and other community leaders, an analysis of community input from recent planning efforts and surveys related to sustainability, clean mobility, energy, health, equity and more. Specifically, ILG and city staff team looked at the community data from the CCCT, a local group of diverse stakeholders and residents engaged in the community vulnerability and adaptive capacity project a year prior. A one-year-old Climate Planning Survey conducted by Stanford University and the city’s mobility study survey further identified community climate planning preferences, needs and opportunities.

This effort builds upon the extensive public engagement that was conducted for the city’s 2011 Climate Action Plan. To better understand the current priorities of our community in this dynamic environment and to fill gaps in data needed to inform CAP strategies and programs further, the project team worked with community-based organizations (CBOs) and partners to design the questions and ensure the language was user friendly for a wide diversity of community members. The online survey was made available on the East Palo Alto website, WhatsApp, Facebook in English and Spanish. City and school district newsletters expanded the survey’s reach.

The survey asked participants questions about climate action programs and projects around transportation, energy, waste, healthy locally sourced foods, clean air and more.

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Packet Pg. 297 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Implementation
61 During a time in which not all could prioritize participation, targeted interviews with community leaders and stakeholders helped make engagement more inclusive. The interviews provided another opportunity to add to existing community data to better understand diverse community values and climate planning opportunities.

Serving as a neutral third-party nonprofit, ILG conducted a series of phone interviews with • education sector representatives,
• business sector representatives,
• residents working and living in the city of East Palo Alto, • faith leaders,
• CBOs leaders that serve a diverse East Palo Alto population, • public works and planning commissioners,
• regional stakeholders, including the San Mateo County Office of Sustainability.

As part of the ongoing dialogue and collaboration, the project team stayed committed to process transparency while acknowledging engagement and timing challenges. Part of this commitment was to have continuing conversations with a small group of community leaders and stakeholders, including CCCT, Acterra and Nuestra Casa, share preliminary rough drafts and ask for specific suggestions.

The project team thanks participants for their time and effort while recognizing the difficulty and uncertainty the pandemic has brought about for so many community members. The City of East Palo Alto looks forward to the opportunity to engage with and learn from the community on climate action planning more deeply.

Key Takeaways
Public engagement activities helped to shape the direction and policies of the Climate Action Plan. Just as all California cities are very different, the ways that we can reduce our greenhouse gas emissions can also be different in every community. The City of East Palo Alto has environmental challenges because of our location to freeways and our proximity to the rising sea levels. We also have many opportunities because of committed community leaders and passionate residents who strive to call East Palo Alto “our home” for many years to come.

The community’s values, efforts and choices help the city decide how to fund and prioritize projects and programs that help us reduce greenhouse gas emissions in our community.

Engaging the community not only helped to identify needs and priorities around climate planning; it also illuminated the opportunity for more collaborative engagement, increased education and ongoing action with the community on climate and sustainability topics. We heard loud and clear that affordable housing, disaster preparedness, safe biking and walking, access to healthy locally sourced foods, and clean energy are essential to address in order to increase the health, safety and resilience of our city. Our youth and the Community Climate Change Team are motivated and eager to take action on these climate topics and represent emerging and active community leaders. We strive to continue engaging our community leaders, residents and CBOs and foster partnerships with the city to make progress on our climate goals together. We look forward to building a more sustainable, healthy and equitable East Palo Alto.

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Packet Pg. 298 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Implementation
62 Timeline
The following timeline lists the major milestones in the CAP implementation process. Progress and updates to this schedule should be submitted to the City Council and the public as part of an annual Plan Implementation Report (Table 6.2).

Table 6.2. Climate Action Plan Implementation
Milestone Target Date
GHG Inventory Completed 01/14/2021
GHG Reduction Goal Established 02/15/2022
Draft CAP Published 03/09/2022
Community Comment Period 03/09/2022-05/01/2022
Council Review
CAP Adoption
Sustainability Coordinator Begins Implementation [08/2023] 1 st Annual CAP Implementation Report 06/2024
Community Comment Period 02/2024-03/2024
2 nd GHG Inventory Completed [MM/YYYY]
1 st CAP Update [06/2023]
Implementation Budget
Staff has evaluated the resource impacts across City departments and identified resources needed to implement this CAP for the next 7 years.

Some of the actions will be absorbed and integrated into existing departmental operating or project budgets, we anticipate coordination of these programs to be .25 FTE of staff time in the Public Works, Transportation, and Community and Economic Development departments. Additional resources needed over the next 7 years includes 0.5 additional full time equivalent staff positions and augmenting the City’s ongoing budget for CAP implementation. Resources allocated to implementing the CAP will be refined and finalized as part of the annual process for budget development and approval by the City Council.

In order to implement the CAP, the City will need to add one FTE 2-year contract staff position to Environmental Programs who will serve as the Sustainability Coordinator. This contract may need extension or renewal for the duration of implementation up to and including 2030. The future Environmental Program Manager may be able to fulfill part or all of this role, depending on other duties assigned. This position is currently slated to be partially filled by an incoming Fellow serving as a Sustainability Coordinator paid in part by the City, pending City Council approval, and procured through the Sustainability Service Corps, a program of Bay Area Community Resources.

This Fellow’s term will begin in September 2023 and conclude in July of 2024, with the possibility of extension.

This contract staff member will create an Implementation Plan to further develop and begin implementing the listed measures and Adaptation Strategies as well as identify and secure sources of funding for the following:

EW4.1 - Conduct an extreme heat study to understand the potential future impacts of extreme heat on local under-served communities and identify opportunities for extreme heat mitigation in those areas.

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Packet Pg. 299 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Implementation
63 T.1. - Establish or expand local shuttle service
T1.3a - Enhance infrastructure to promote shared electric bikes and scooters T1.4 - Expand programs that provide bicycles at free or reduced costs to residents, with bicycle safety training.

T1.5 - Free public transit program
T1.8 - Free e-bike pilot program
The City’s strategy to finance implementation of current and future actions will evolve over time. Strategies the City may consider could include:
• Leveraging partnerships and collaborative projects, particularly through Peninsula Clean Energy and Office of Sustainability programs and Grant programs available through utilities, Federal and State opportunities.
• Charging carbon impact fees for development projects, for example, as a traffic mitigation or if a waiver of electrification requirements is sought due to special circumstances • Implementing user fees for selected activities and services, where a nexus exists • Implementing paid parking in selected locations
• Adding transportation impact fees to requirements for new construction projects and/or mitigation of offroad vehicles with higher emissions impacts Monitoring and Improvement
East Palo Alto envisions that the core strategies will remain constant as we move forward. As we live in an age and place of abundant technological innovation, more advanced technologies and creative innovations may be integrated into the CAP in the future.

Generation-based inventories provide a consistent way to track progress over time. But these inventories have two shortfalls:

1. Annual GHG generation-based inventories lag about two years behind. For instance, the 2021 became available in February 2023. This makes it difficult to get immediate feedback on changes to programs and policies.

2. Generation-based inventories don’t tell the whole story. Our goal is to achieve 55 percent reduction of per capita GHG emissions from 2005 levels by 2030. It will be difficult to meet the carbon neutrality goal without calculating and tracking emissions from the consumption of goods and services in addition to generation of emissions.

East Palo Alto’s monitoring and ongoing improvement program addresses these shortfalls:
• East Palo Alto will establish and track key performance indicators (KPIs) for each action listed in Chapter 5, Strategies and Actions, Strategies to Get Us There section, including actions to reduce consumptionbased emissions. Progress on KPIs will be posted on the City’s website and updated annually, at minimum.
• Through the RICAPS program, East Palo Alto will consider participating in a countywide goal for KPIs agreed to by all cities in the county. Those KPIs will be posted and tracked on the County’s website.

Examples of common KPIs are number of solar installations, number of EV charging stations installed, number of homes retrofitted, number of EVs purchased, number of heat pump water heaters and/or space heaters installed, etc.

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Packet Pg. 300 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Implementation
64 • Every year, the Sustainability Coordinator will issue an Annual Climate Action Plan Update Report to update the City Council, residents, and other interested stakeholders on progress made implementing the CAP actions, with the opportunity for the community to provide input. The ACAPUR will detail lessons learned and make recommendations for changes to the implementation strategy or the CAP itself. East Palo Alto will review the newest community GHG inventory provided by the County of San Mateo Office of Sustainability through the San Mateo County Energy Watch program and conduct a municipal GHG generation-based inventory to track progress on reducing the City’s own emissions which will be included the ACAPUR.
• The Sustainability Coordinator will track the emissions, resource savings, equity and inclusion impact, and any other effects of each implemented action, as well as estimate costs to government, residents, and businesses. Each action will be summarized in the ACAPUR and made available for public review. • This CAP may need to be updated based on the results of the GHG inventories. East Palo Alto may modify and/or add new actions to ensure that the City is on track to meet its GHG reduction goals. • In partnership with the County Office of Sustainability, East Palo Alto will explore a collaboration with a research institution to include questions about climate protection behaviors in an annual countywide survey of community members. Responses from the survey could be used to track progress on community actions related to consumption-based emissions.

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Packet Pg. 301 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
65 7. Impacts of Climate Change and
Climate Adaptation
7 IMPACTS OF

CLIMATE CHANGE

AND CLIMATE

ADAPTATION

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Packet Pg. 302 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
66 Impacts of Climate Change on East Palo
Alto
Climate Science Overview
Climate change presents one of the most significant challenges of our time. As levels of greenhouse gas (GHG) emissions increase in the atmosphere, the Earth’s climate system is being destabilized. GHG emissions are invisible, and include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and three man-made gasses:
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).

As more greenhouse gasses are trapped inside the Earth’s atmosphere, more of the sun’s energy is trapped as heat, which means temperatures keep getting hotter. In fact, the world has already become nearly 1°C warmer since 1880, and we’re seeing extreme consequences because of it, including more intense storms, greater wildfire risk, and rising sea levels.

Although we’re already seeing impacts of climate change, there’s a range of how relatively mild or devastating the future impacts might be, depending on how aggressively we take action to address it (see Chapter 7, Impacts of Climate Change and Climate Adaptation, Future Projections section). Scientists have laid out four pathways, or scenarios, based on future levels of GHG emissions. The pathways range from the very optimistic to the highly pessimistic. In accordance with state guidance, this CAP uses the RCP 8.5 (“business as usual” scenario) for future climate projections out to mi-century (2050), and both RCP 8.5 and RCP 4.5 (“mitigating” scenario) for endof-century (2100) projections. For more information about the four pathways, see Appendix B.4.

The Earth Has a Fever
Atmospheric scientist Dr. Katharine Hayhoe has a simple way to explain the impact of rising global temperatures: “When we say the planet is warming by one or two or three degrees Celsius, often we think, ‘Well, that’s nothing.’ But if our body’s temperature goes up one and a half to three or even four degrees Fahrenheit, we are running a fever. We go to the doctor. If it was three or four degrees, we go to the hospital. And that’s what’s happening to our planet. It is running a fever. And that fever is affecting us.”
—Dr. Katharine Hayhoe, Professor and Director,
Climate Science Center, Texas Tech University

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Packet Pg. 303 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
67 Climate Change in East Palo Alto
Climate change has already affected and will continue to affect East Palo Alto in significant ways. Climate change will have many different effects on the community and on the natural world. The following section documents historical and projected changes to climate.

The city’s annual average maximum temperature increased 1.4°F from 1950 to 2004.

Coastal fog, which is critical to the region’s climate and ecosystems, is less frequent than ever before.

Sea level has risen over 8 inches in the last century.

The forceful 2015–2016 El Niño weather pattern, which was one of the three largest in history, resulted in unprecedented outer coast beach erosion due to winter wave energy that was more than 50 percent greater than a typical winter.

The 2012–2016 statewide drought led to the most drastic moisture shortages in the last 1,200 years, resulting in a 1-in-500-year low in Sierra snowpack. This drastically reduced snowpack resulted in $2.1 billion in economic losses, 21,000 jobs lost statewide in agricultural and recreational sectors, and a continuing exhaustion of groundwater sources.

Future Projections
Under an RCP8.5 emissions scenario, the City’s annual average maximum temperature will increase by up to

5.6°F from a 2005 baseline of 69.9°F to 75.5°F by mid-century. By end-of-century, temperature rise will be between 7.6°F and 11.8°F dependent on the emissions scenario. The East Palo Alto community is at heightened risk during extreme temperature days due to a lack of existing air conditioning in many homes and businesses.

Precipitation frequency and severity will continue to vary each year. The differences between wet and dry years are projected to become more extreme and damaging in the coming decades. If no action is taken to combat climate change, the Sierra snowpack, a critical source of water for the State, will decrease by an average of 64 percent by the end of the century.12 East Palo Alto residents are at higher risk from flooding related to higher precipitation events. During drought conditions, water cutbacks will be challenging due to low per-capita use.

As temperature continues to increase, it is anticipated to cause longer and more intense California droughts, posing major problems for government operations, water supplies, ecosystems, agriculture, and recreation.

Studies suggest that even with significant emissions reductions, it is inevitable that there will be at least 6 feet of sea-level rise over the next several centuries due to the delayed effects of climate change. East Palo Alto is at direct risk of sea-level-rise and related impacts.

As a highly urbanized, built-out City, East Palo Alto is not at direct risk of wildfires. However, increased frequency and severity of wildfires in San Mateo and neighboring counties will likely impact air quality for residents.

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Packet Pg. 304 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
68 Social Vulnerability
Social vulnerability refers to populations with greater sensitivity to climate impacts because of social inequities, physical characteristics, or baseline conditions. These include, but are not limited to:
• Children and the elderly
• People with limited English proficiency
• Low-income communities
• Communities of color
• LGBTI and/or gender non-conforming community
members
• Undocumented immigrants
• Women
• Community members who practice a minority
religion
• Community members with limited education or
literacy
• Residents with unstable economic or housing
situations
• People with disabilities or physical and mental health conditions
• Outdoor workers and others whose workplace
conditions expose them to disproportionate risk,
including people in the informal workforce
• People whose housing conditions expose them to
disproportionate risk
• People who are disproportionately exposed to pollution and toxic hazards or natural hazards
• Community members without access to the internet or
phone service
• Transit-dependent populations
• Community members who face multiple areas of
vulnerability or intersectional vulnerability
The County of San Mateo developed a Community Vulnerability Index (CVI) to demonstrate the geographical distribution of the overall vulnerability of the residents of the county. The index is composed of seven indicators:
health insurance coverage, education, supplemental security income, gross rent as a percentage of income, poverty, unemployment, and disability status. The indicators that have been standardized and combined to create dimension scores, on a scale from zero to 100 (higher value represents greater social vulnerability), for each of the census tracts within San Mateo County.

The CVI is mapped at the census tract level for the City in Figure 7.1. As shown on Figure 7.1, the northeastern portion of the City has the greatest vulnerability relative to other areas in the City. This index can help the City equitably allocate resources to protect vulnerable communities from climate impacts.

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Packet Pg. 305 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
69 Figure 7.1: Community Vulnerability Index
Climate Impacts in East Palo Alto
Following are some of the key climate impacts, including those on the built, social, and natural environment that the City will likely experience in the future.

Impacts
on people
Climate change could have broad impacts to communities and people – hitting those most vulnerable first and worst. High levels of socioeconomic inequity in the bay area create large differences in the ability of individuals to prepare for and recover from heat waves, floods, and wildfires.

Direct effects include a broad spectrum of heat-related diseases, ranging from heat exhaustion to heat stroke to death, and injuries and fatalities that result from severe weather. Indirect effects of climate change on human health arise from the connection of climate and weather conditions with health responses. Examples include air pollution, pollen and allergens, decreases in water quality and more extensive harmful algal blooms, and changes in supply of water and food.

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Packet Pg. 306 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
70 Rising Temperatures
The City’s average annual maximum temperature increased by 1.4°F from 1950 to 2004. Even as the City takes action to mitigate greenhouse gas emissions, global emissions are projected to continue rising. East Palo Alto will likely see annual average warming of approximately 2.4°F by midcentury and as much as 6.8°F under the high-emissions scenario compared to a 2005 baseline. By the end of the century, temperatures could rise by 4°F to 6.8°F.14
Extreme heat events occur when air temperatures reach or exceed 92.4°F.

Historically, East Palo Alto has experienced an average of 3 heat events per year. Under the high-emissions (“business as usual”) scenario, extreme heat events may occur more than 3 times as frequently, up to 10 per year by mid-century and 14 to 23 per year by end-of-century.

Extreme heat events pose a threat to human lives, especially socially vulnerable groups (see page 17). Even temperatures as low as 80°F can cause fatigue after prolonged exposure, and heat exhaustion may follow.

When a person’s internal temperature reaches 105°F, organ failure and even death can result. Heat also intensifies smog and air pollutants that can contribute to and exacerbate respiratory disease and result in more asthma and heart attacks.

Only 10 percent of homes in the Bay Area currently have air conditioning.15 Warming trends are expected to cause more people to install and use air conditioning, resulting in an increase in GHG emissions. The largest increase in summer energy demand is expected in coastal cities as air conditioning adoption grows. The amount and location of new air conditioning needed can be predicted through a metric called “cooling degree days” (CDD). This value quantifies how much the air temperature exceeds 65°F on a single day or period of days. As the temperature rises above 65°F outside, occupants inside get increasingly uncomfortable and will typically turn on air conditioning if it is available, so a larger CDD indicates a higher likelihood of increased energy consumption to cool homes and businesses. Some solutions to the effects of CDD discussed in this CAP include the expansion of urban tree canopy, improving building insulation, and the replacement of impermeable ground surfaces with green space in order for residents to feel more comfortable on these days. In East Palo Alto, CDDs are projected to double or triple between present day and 2070. Figure 7.2 shows average CDDs for East Palo Alto relative to other jurisdictions in the County.

Impact of Heat on People
In a heat wave, the most dangerous
places can be the ones where people
spend the most time: inside houses and
apartments. In poorly insulated
buildings, heat can build up and not
even dissipate at night. In 2018, a KQED
investigation found that bay area homes
without air conditioning were as much as
15 to 20 degrees hotter inside than
outside overnight.13
These risks are compounded for lowincome communities. A September 2017 bay area heat wave overwhelmed the
protective and social infrastructure in
San Francisco, resulting in 6 deaths and
38 hospitalizations. Members of socially
vulnerable communities may not be able
to afford to cool their work or living
spaces or may be forced to choose
between air conditioning and paying for
basic necessities (e.g., food and rent).

12.2.b
Packet Pg. 307 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
71 Figure 7.2: Average Cooling Degree Days (CDD) by Jurisdiction Sea-Level Rise
East Palo Alto is one of the top hotspots for sea-level rise in the nation. Average sea level in the Bay Area has risen 8 inches in the past 100 years, based on the San Francisco tide gauge.16 In 2018, the County of San Mateo finalized a Sea-Level Rise Vulnerability Assessment17 for the County in coordination with cities, agencies, businesses, community groups, and others. Sea-level rise impacts include flooding, increased wave action, rising groundwater tables and saltwater intrusion, increased erosion (i.e., landward shoreline retreat) and changes in sediment supply. The Assessment assessed the risk of sea level rise with respect to three scenarios:

1. Baseline Scenario: 0 feet of sea level rise + 1 percent annual chance flood (present-day extreme flood also known as the 100-year flood)

2. Mid-Level Scenario: 3.3 feet of sea level rise + 1 percent annual chance flood

3. High-End Scenario: 6.6 feet of sea level rise + 1 percent annual chance flood In 2018 the California Ocean Protection Council (OPC) released updated Sea-Level Rise Guidance, which uses “probabilistic-based”m projections and lays out an approach for developing adaptation strategies. The OPC recommends using extreme risk projections in planning for larger and more complex infrastructure projects such as roads, wastewater treatment plants, and hazardous waste sites. The extreme risk projections indicate that the City may experience the mid-level scenario (3.3 feet of sea level rise) as early as 2060 and the high-end scenario by 2080.

12.2.b
Packet Pg. 308 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
72 According to the County’s Assessment, the City of East Palo Alto has 335 acres of land at risk in the baseline scenario, 714 acres in the mid-level scenario, and 992 acres in the high-end scenario. Nearly 60 percent of East Palo Alto’s population and almost all of the City’s wetlands are vulnerable to sea level rise under the mid-level scenario, as shown on Figure 7.3. Critical infrastructure and community-serving facilities included energy and water infrastructure, local roadways, schools, emergency shelters, and parks would also be impacted by sea level rise, as shown on Figure 7.3.

Figure 7.3: East Palo Alto Natural Asset Exposure to Sea Level Rise Source: County of San Mateo 2018

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Packet Pg. 309 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
73 Figure 7.4: East Palo Alto Critical Infrastructure Exposure to Sea Level Rise Source: County of San Mateo 2018.

As shown on Figure 7.4, under a mid-level scenario, the following critical infrastructure would be exposed to sea level rise:
• 1 electric substation
• 1.4 miles of transmission lines
• 5 water outfalls (many submerged by Bay mud)
• 1 stormwater pump station requiring upgrades
• 4 miles of storm drains (many lack positive
hydraulic flow)
• 0.9 miles of natural gas pipeline
• 14.6 miles of road
• 1 underground chemical storage tank
The following facilities would also be impacted under a mid-level scenario:
• 7 emergency shelters,
• 6 schools
• 39 hazardous material sites
• 1 outpatient health care facility

12.2.b
Packet Pg. 310 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
74 Increased Fire Risk
Fire risk is a reflection of accumulation of wood or fuels in a forest combined with changes in the length and frequency of the fire season due to warmer climate, changing precipitation, lower humidity, higher winds, and soil drying from droughts. Fire suppression in the area has increased as fuel reserves have built up in unmanaged forests and woodlands. Though wildfires are unlikely to directly impact East Palo Alto, the City’s proximity to dry upland vegetation on the bayside does present a vulnerability to brush fires. There is a non-zero risk of impact to nearby homes and infrastructure, as well as a local air quality.

Climate change is expected to increase the frequency, intensity, and duration of wildfire events impacting San Mateo County.

Wildfires are most likely to impact the City of East Palo Alto in two primary ways: 1) mass evacuations may result in an influx of displaced persons after a wildfire event, and 2) city residents may be exposed to unhealthy levels of smoke for days to weeks at a time. Older housing stock may be inadequately sealed, which can reduce the residents’ opportunity to seek isolation from the smoke by remaining sheltered in place at home. Between 1995 and 2030, the model projects an increased risk of wildfire in San Mateo County from nine to 13.4 percent. In addition, by 2070, the projected burn area nearly doubles to 25 percent. Simulations of large wildfires using statistical models developed for the Fourth California State Climate Assessment18 show that the probability of a large fire—which burns more than 1,000 acres – in San Mateo County increases rapidly with a warming climate, with an eight-fold increase in the probability of a large wildfire by 2070. By 2070, the chance that large wildfires or those over 1,000 acres will occur increases to 4 percent per year.

Figure 7.5 shows the areas that are most at risk of wildfire in the future. The “average annual area burned” is the modeled annual mean area
burned in hectares for 1970–1979.

Impact of Wildfires and Poor Air
Quality on People
Most Californians are not aware of
recent statistics that suggest that
California is home to the worst air quality
in the nation, with over 90 percent of
Californians breathing unhealthy air.

According to the California air resources
board, unhealthy levels of ozone (smog)
and particulate matter annually
contribute to 19,000 premature deaths
and 9,400 hospital admissions for
respiratory and cardiovascular disease.

Wildfires exacerbate the air quality
problems, causing temporary large
increases in outdoor airborne particles,
and substantial increases in gaseous air
pollutants such as carbon monoxide.

Socially vulnerable residents may be
more affected by wildfires if they have
existing health issues, less access to
social services and internet, and fewer
economic resources to respond.

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Packet Pg. 311 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
75 Figure 7.5: Average Percent Burned Area in San Mateo County Increased Frequency and Intensity of Storms
The City’s largest winter storms will likely become more intense, and potentially more damaging, in the coming decades. Flooding is a significant threat in the City and is expected to increase as a result of climate change. According to flood modeling that integrates the impacts of sea-level rise and inland flooding throughout the County, a flood with a one percent chance of occurring in 2030 would increase to a two percent chance of occurring under 2070 climate conditions. The higher probability of extreme flooding means that creeks and municipal storm sewers are more likely to be overwhelmed, potentially resulting in damage to infrastructure and even loss of life. The largest individual storms are becoming more intense with climate change. In addition, more frequent “whiplash” events that swing from extremely dry to extremely wet conditions in California could become the new normal.

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Packet Pg. 312 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
76 In the last century, storms tracked in East Palo Alto have shown a higher incidence of increasingly intense rainfall events, with higher tidal influence, doubly exacerbating flooding impacts as rainwater is restricted from entering the San Francisco Bay or San Francisquito Creek in tidally influenced areas.

Decreased Availability and Quality of Water
The 2012–2016 California drought led to the most severe moisture deficits in the last 1,200 years and a 1-in-500-year low in Sierra snowpack. The record low snowpack resulted in $2.1 billion in economic losses and exacerbated an ongoing trend of ground water overdraft.19 While the total amount of precipitation in the Bay Area is not projected to change significantly (models project an additional 2 to 5 inches), the amount and timing of water available as drinking water may change. The City of East Palo Alto receives
approximately 90 percent of local drinking water from the Hetch Hetchy water system, operated by the San Francisco Public Utilities Commission (SFPUC). The Hetch Hetchy system is located in the Sierra mountain range. Under a high emissions scenario, average Sierra Nevada snowpack is projected to decline by nearly 20 percent in the next two to three decades, 30 percent to 60 percent in mid-century and by over 80 percent in late century.20 At the time of this document preparation, California and the Southwestern United States is in the middle of a 22-year drought, with a 75 percent chance of the drought extending another eight years. A study has recently determined that the extended drought has a 42 percent chance to have been exacerbated by human activities such as global warming emissions.21
Rising bay water and groundwater levels will also increase salinity intrusion and subsurface flooding inland.

Climate change will require improved storm water management in the Bay Area as extreme storm events increase in size and frequency.

In East Palo Alto, the City has one active emergency well at Gloria and Bay Rd, and a second emergency well expected to be onboard in 2023 at “Pad D” located at the corner of Clarke and E Bayshore Road. Sea Level Rise has a high potential of saltwater intrusion into the local aquifer, known as the San Francisquito Subbasin, due to the proximity to tidally influenced areas.

The O’Connor Tract Mutual Water Company is located on the central-west portion of the City of East Palo Alto.

Only a portion of the service territory is located within city limits. The remaining portion is in Menlo Park. The O’Connor Tract consists of approximately 340 connections, of which many are for multifamily residences. About 35 of these connections are metered. This drinking water is pumped from the groundwater aquifer and is not regulated by the City of East Palo Alto.

The Palo Alto Park Mutual Water Company is located on the central-west portion of the City of East Palo Alto.

The Palo Alto Mutual Water Company consists of approximately 677 unmetered residential connections, 20 unmetered commercial connections, and two metered residential connections. This drinking water is pumped from the groundwater aquifer and is not regulated by the City of East Palo Alto.

As climate changes and drought becomes more prevalent the primary reliance on Hetch Hetchy will become more restricted, with ever-increasing calls for conservation as the greater Bay Area relies on this vital resource as a continued reliable drinking source. With increased restrictions on the Hetch Hetchy system, increased pressures to supplement drinking water with groundwater resources will become more commonplace. Due to conflicts with potential saltwater intrusion into the groundwater aquifer, the City must support increased recharge of the groundwater aquifer by partners such as the City of Palo Alto, Santa Clara Valley Water District, West Bay Sanitary District, South Bayside Waste Management Authority, and San Mateo County to ensure the system

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Packet Pg. 313 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
77 continues in equilibrium, without subsidence pressures. Increased subsidence pressure will increase the likelihood of salt-water intrusion into the system.

The City will address ongoing water needs through the City’s Urban Water Management Plan (UWMP) to address changing conditions related to water sources, water availability, water demands, and water reliability for the next 20 years, and to update its UWMP every five years. During drought years, the City will rely on the Water Shortage Contingency Plan (WSCP) which outlines the City’s drought response and plan for changes or shortages in water supplies. These documents were most recently updated and adopted in June 15, 2021.

Decreased Fog
Coastal fog, critical to the City and region’s climate, has decreased as much as 33 percent in some areas over the past 60 years.22 Across the state of California, fog is expected to decline by an additional 12–20 percent by 2070.23 In addition to being affected by changes in local and global atmospheric patterns due to climate change, fog is reduced in urban areas due to urban land use and pollution. Warmer nighttime temperatures, as a result of impervious surfaces and the urban heat island effect, can reduce fog, highlighting the importance of land use policies and urban tree canopies in maintaining fog cover, and thus lowering temperatures.

Plants and wildlife depend on fog and redwood forests obtain as much as a third of their water from fog.

Increased Impact on Energy Systems
The Bay Area electrical grid, on which the City relies, is vulnerable to power outages during wind and wildfire events such as Public Safety Power Shutoffs (PSPS) – planned power outages to prevent occurrences of electrical equipment starting wildfires.24 Many of our natural gas pipelines are located along waterways and will be impacted by flooding from sea-level rise and extreme storm events.

California’s transportation fuel sector, which distributes oil from refineries to end users, will be increasingly exposed to extreme weather events such as flooding and wildfire.

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Packet Pg. 314 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
78 Financial Impact of Climate Change
As climate-related natural disasters become more frequent and intense, costs for disaster response and relief are anticipated to increase. With flooding, storms, droughts, wildfires, and other climate-related natural disasters becoming more common, flood insurance and flood prevention costs will grow.25 Climate change is anticipated to impact public buildings, storm water infrastructure, transportation infrastructure, community services, and land-use planning and development. Climate damage to homes and businesses could negatively impact the economy and reduce East Palo Alto’s income from property and sales taxes, not to mention damage the quality of life for all community members.

If East Palo Alto allocates resources and invests in climate-protecting strategies now, it will be insurance against some of the most costly effects of a hotter planet in the future.

Working with the San Mateo County Health System
The San Mateo County Health System, in accordance with the Centers for Disease Control, serves a number of functions to reduce health risks related to climate change. These include informing cities about the risk to public health from climate change, creating tools that support decision-making and capacity building related to mitigating adverse health outcomes from climate change, and serving as a credible leader in planning for the public health impacts of climate change. East Palo Alto intends to work with the San Mateo County Health System to mitigate public health dangers and maintain or improve long-term health by encouraging residents and workers to be part of the solution.

Research shows that individuals who live in mixed-use and walkable communities have a 35 percent lower risk of obesity.26 Another study estimates that the walking associated with transit use saves an individual $5,500 over the course of their life by reducing obesity-related medical costs.27 East Palo Alto and the San Mateo County Health System will support programs that promote more walkable and bikeable cities, which not only promote healthier lifestyles, but also decrease reliance on vehicles that contribute to climate change.

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Packet Pg. 315 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
79 Adaptation Strategies
As noted earlier in Chapter 7, Impacts of Climate Change and Climate Adaptation, the climate is changing rapidly.

In 2019, the average temperature across global land and ocean surfaces was 1.71°F (0.95°C) above the 20th century average. This was the second highest among all years in the 1880–2019 record and just 0.07°F (0.04°C) less than the record value set in 2016. The five warmest years have occurred since 2015; nine of the 10 warmest years have occurred since 2005.28
Even if we stopped emitting greenhouse gasses tomorrow, the climate would continue to change due to the length of the carbon cycle — the ability of the Earth to absorb excess carbon in the ocean and plants. Therefore, climate change is inevitable, and our communities must adapt.

Adaptation planning is most effective at the local level. The City of East Palo Alto intends to prioritize adaptation planning over the next five years. Already, the City has recognized the threat of extreme heat on its residents, and has begun to prepare for the increased intensity and frequency of heat by developing an Urban Forest Master Plan to manage and expand its tree canopy. A tree protection ordinance has also been developed to achieve target canopy cover rates. 100 trees will be planted by the City in partnership with Canopy, a local nonprofit organization. Over the next 5 years, the City will seek to reduce the community’s risk to climate change by pursuing the following adaptation strategies:

Table 7.1: AJ-1 Update Environmental Justice Element to incorporate Adaptation Strategies.

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Packet Pg. 316 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
80 Action Implementation Considerations Time-frame Lead Community Partner Consider updating the General
Plan Safety and Health & Equity
Elements and zoning codes
based on California Ocean
Protection Council sea level rise
projections and incorporate
known climate change risks to
East Palo Alto, along with
adaptation strategies the City
will implement to support
community members in the
event of an anticipated climate
change hazard.

The OPC recommends using mid-high
risk projections in planning for larger
and more complex infrastructure
projects such as roads, wastewater
treatment plants, and hazardous waste
sites. The extreme risk projections
indicate that the City may experience
the mid-level scenario (3.3 feet of sea
level rise) as early as 2060 and the
high-end scenario by 2080. Alternative
evacuation and/or shelter sites may be
required in areas not subject to
inundations; due to the substantial
risks present in East Palo Alto, and
facilities that are potentially to be
impacted, this may require support
from outside agencies, such as the
One Shoreline (San Mateo County
Flood and Sea Level Rise Resiliency
District). More details noted * below.
2025 Public Works
One Shoreline,
Developers, San Mateo
County
Recommend the City adopts a
resolution declaring a climate
emergency in East Palo Alto to
highlight the increasingly urgent
need for action to address the
climate crisis.

Over 1,000 national, international, and
local jurisdictions have prepared similar
declarations. The resolution can be
prepared to call for a City climate
action plan (CAPs) for government
operations to achieve carbon neutrality
in advance of the soft Citywide target
of 2045 and expand coordination with
local partners in addressing the climate
crisis. This can include direction to City
Staff to develop a more extensive
environmentally preferable purchasing
policy to align with the proposed goals
to be established by the City Council,
along with an outreach campaign to
bring awareness to the community.
2023 Environment
al Programs
Provide outreach through City
Manager Office, the City’s
website, and other
communication channels about
how the City is preparing for
climate change and ways the
community can get involved in
reducing emissions and
personally preparing for the
impacts of climate change.

The City will also conduct outreach
through these communication channels
during the implementation process so
community members may provide
ongoing feedback.
2023
City Hall,
Environment
al Programs

12.2.b
Packet Pg. 317 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
81 Update the City’s local Hazard
Mitigation Plan to incorporate
climate change and adaptation
strategies strengthening the
City’s response to climate
emergency preparedness
detailing discrete projects such
as microgrid facilities, upgrades
at critical emergency response
and government facilities, and to
prepare facilities with
appropriate equipment required
to provide support to residents in
jeopardy under climate change
related hazards.

Such climate emergencies may include
floods, extreme heat, low water
pressure/ SFPUC system collapse,
smoke from fires and utility
failures/damage. More details noted **
below.
2025
Continue to implement Urban
Forest Master Plan and consider
amendments that increase tree
coverage on an earlier
timeframe as funding sources
allow.

To reduce urban heat, prioritizing
disadvantaged neighborhoods,
expanding the urban forest to the
maximum feasible, restore native trees
where possible, and reduce impervious
surfaces to provide for rainfall
absorption and reduced runoff and
shading areas where active
transportation can be safely utilized, to
reach the City Council adopted 100-
year goal of 30% tree cover.
2023
Implement the updated Tree
Protection Ordinance to retain
existing and expanded trees.

Consider expanded community
outreach strategies to reduce the
incidence of unnecessary tree removal
including those identified in the
updated ordinance, and more
specifically implement a robust
community information program and
enhanced educational materials to
ensure that community members are
aware of the protections in place and
the penalties for unpermitted removal
of a protected tree.
2023
Implement the Green
Infrastructure Plan (adopted by
Resolution 82-2020),
Update Parks Master Plan and specific
park master plans with stormwater
detention opportunities, along with all
new development projects to reduce
impervious surfaces throughout the
community and providing shading in
areas where active transportation can
be safely accessed, while improving
riparian habitat along San Francisquito
Creek and the Bay Trail to expand
resilience to sea level rise.
2023

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Packet Pg. 318 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
82 The Safer Bay project, in
conjunction with San
Francisquito Creek Joint Powers
Authority, through set policy,
consider prioritizing the design
and installation of a horizontal
levee, as feasible.

TBD Public Works OneShoreline
Develop climate resilient
infrastructure
Upgrade existing infrastructure to meet
anticipated and current San Francisco
Bay and San Francisquito Creek water
intrusion. This includes updating
stormdrain outfalls to exclude water
intrusion into the public stormdrain
systems, and working with private
property owners, Caltrans, BCDC and
other jurisdictions to update outfalls
currently on properties where the City
does not have land use authority.

Develop maintenance easements for
such sites.
2024
Public
Works,
CEDD
Prioritize expansion of and
access to the Bay trail, and
installation of trails along other
public properties
The City will continue to increase
pedestrian access along eastern
portions of the Bay Trail and develop
linear parks along San Francisquito
Creek, as well as improve access to
restrooms and water bottle refill
stations where feasible. This will
improve public access to active
transportation and enhance the
resilience capacity of these waterways
and baylands (ie Blue Carbon
Storage).
2024
Public Works
and
Transportatio
n Dept. ,
Community
Services
MidPeninsula Open
Space Preserve

12.2.b
Packet Pg. 319 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
83 Develop or adopt waste
reduction ordinances to reduce
emissions through transportation
of waste and waste biproducts.
a. Reduce plastic single use packaging
including polystyrene ban for take-out
foods at restaurants, such as adoption
of a Disposable Food Service Ware
Ordinance consistent with the San
Mateo County Ordinance No. 4860 to
align with State laws.
b.Consider the reduction of trash bin
size and larger organic/compost and
recycling bins to accommodate higher
diversion rates from the landfill to align
with State laws while maximizing
capture of emission biproducts.
c.Expand local community access to
hazardous waste disposal options
including increased drop-off events
within the jurisdiction of East Palo Alto
to reduce the incidence of illegal
dumping of toxic substances and
related emissions.

D.Consider Move-in move-out solid
waste drop-off vouchers in-lieu of bulky
waste drop-off to reduce the incidence
of illegal dumping due to housing
transitions.
2024 Environment
al Programs
Partner with local non-profit
entities and public agencies to
expand and develop projects
and programs geared at
enhancing local use of organic
compost from post-consumer
content, including local
gardening programs with
educational components about
full-system cycling and locally
grown food.
2024 Environment
al Programs
ReThink Waste,
Recology, Collective
Roots

12.2.b
Packet Pg. 320 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
84 Partner with local organizations
to remove impervious surfaces
on private property.

Support the installation of pervious
driveways and walkways that drain to
landscaping, install cisterns, and raised
garden beds, expand urban agriculture,
tree, and native plant installations to
expand the availability of stormwater
absorption and/or capture with a goal
of 40% of the City’s geography being
pervious by 2050, in alignment with the
Urban Forest Master Plan.
2024
Partner with local organizations
to expand the community’s
access to indoor and outdoor air
quality monitoring
Encourage education to interpret and
reduce local air quality impacts and
support the replacement of indoor
sources of poor air quality such as gas
appliances and installation of air
purifiers and weather stripping.
2022 Environment
al Programs
Climate Resilient
Communities,
Sustainable Silicon
Valley
Expand drought resilience.

Within the City’s drinking water system,
expand local water storage, encourage
the use of residential emergency water
storage, expanded conservation
strategies that implement Phase II of
the City’s Water Shortage Contingency
Plan as a standard practice.
2022 Public Works
Consider resiliency strategies
such as expansion of local
wetlands and geographic land to
buffer the community from rising
San Francisco Bay water.

Consider potential sites for horizontal
levees, wetland expansion and
recreational amenities that will
maximize to feasible extents the
availability of blue carbon action and
land absorbency. More details noted
*** below.

TBD Public Works
Develop plans for responding to
the likelihood of sea water
intrusion into local water wells
Develop exclusion practices to
eliminate contamination of emergency
water resources as increased sea level
rise results in saltwater intrusion into
groundwater aquifers; support
programs that enable testing of local
residential wells to address the
potential for salt-water intrusion and
potential suspension of currently
encapsulated contaminants.

TBD
Public Works
and
Transportatio
n Dept.

OneShoreline
Note *:
*a. The California Ocean Protection Council (OPC) is a State council that was created pursuant to California Ocean Protection Act (COPA) in 2004. The mission of the OPC is to maintain healthy, resilient, and productive ocean and coastal ecosystems for the benefit of current and future generations. In addition, they provide guidance to decision makers in planning for resilient infrastructure as sea level rises in California.

12.2.b
Packet Pg. 321 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
85 *b. Include the critical infrastructure along with plans for microgrids for critical emergency response and government facilities.
*c. The following facilities would also be impacted under a mid-level scenario:
• 7 emergency shelters,
• 6 schools
• 39 hazardous material sites
• 1 outpatient health care facility
Note **:
**a. Update the O’Connor Pump Station to accommodate Ocean Protection Council sea level rise projections, utilizing high efficiency pumps with low GHG emissions and/or expansion of the electric pumps.
**b. Consider working jointly with San Mateo County and One Shoreline to establish zoning and design strategies for waterfront properties along the East Palo Alto and San Mateo County shoreline to maximize building and infrastructure resilience and reduce the climate change impact on buildings, in coordination with BCDC to support countywide standards and consideration of adoption of zoning similar to Burlingame’s Zoning Ordinance “25.12.050 – Public Access, Flood and Sea Level Rise Performance Guidelines” to set minimal best management practices as a comprehensive approach is developed; see . https://www.burlingame.org/document_center/Planning/25.12.050%20-%20Adopted.pdf **c. Consider that the Ravenswood Specific Plan Update integrates best practices into development opportunities via mandatory policy and funding to enhance the coastal ecosystem and build nature-based features such as:

1. Expansion of Green Infrastructure along all new and existing roadways (where not presently included).

2. Consider creating buffer zones with transition zone appropriate habitat between new development and the San Francisco Bay to detain stormwater and suppress peak flooding with co-benefits that encourage active transportation.

Note ***: Blue Carbon
The City will refer to the following integrated set of policies and tools as it continues to develop adaptation strategies that effectively prepare residents for the impacts of climate change:
• California Adaptation Planning Guide from the California Office of Emergency Services (still in draft form: https://www.caloes.ca.gov/HazardMitigationSite/Documents/APG2-FINAL-PRDRAFTAccessible.pdf) • Safeguarding California Plan: California’s Climate Adaptation Strategy (2018 Update) • 1 electric substation
• 1.4 miles of transmission lines
• 5 water outfalls (many submerged by Bay mud)
• 1 stormwater pump station requiring upgrades
• 4 miles of storm drains (many lack positive
hydraulic flow)
• 0.9 miles of natural gas pipeline
• 14.6 miles of road
• 1 underground chemical storage tank

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Packet Pg. 322 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
86 • Cal-Adapt 2.0 (released October 2017 and updated regularly, most recently in January 2020) • California’s Climate Change Assessment (most recently updated in 2018) • State of California General Plan Guidelines (updated periodically, most recently updated in 2017) • Adaptation Clearinghouse
• State Hazard Mitigation (2018 Update)
In addition, the County of San Mateo has embarked on a multi-sector adaptation strategy, Climate Ready San Mateo County, to plan, assess, and implement strategies to address sea-level rise and flooding, changes in precipitation, extreme heat, and wildfires in San Mateo County.29East Palo Alto plans to coordinate closely with the County on adaptation planning efforts.

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Packet Pg. 323 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Impacts of Climate Change on East Palo Alto
87 8. Environmental Justice
8 ENVIRONMENTAL

JUSTICE

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Packet Pg. 324 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Environmental Justice and Equity
88 Environmental Justice and Equity
California law defines “Environmental Justice” as the fair treatment of people of all races, incomes, and ethnicity with respect to the development, adoption, implementation, and enforcement of environmental laws, regulations, and policies (California Government Code, Section 65040.12[e]). In California, environmental justice includes, but is not limited to, the availability of a healthy environment for all people and the reduction of pollution burdens for populations that are disproportionately experiencing the adverse effects of that pollution(California Government Code, Section 65040.12[e]).

The same inequitable systems (economic, transportation, land use, etc.) that result in higher greenhouse gas emissions (which contribute to climate change) similarly contribute to poor health outcomes and health disparities.

Low-income communities and communities of color are more likely to live in polluted areas and face climate change impacts that exacerbate existing vulnerabilities (OEHHA 2010). Most East Palo Alto residents are members of a historically disadvantaged community. Recognizing these inequities, the City of East Palo Alto seeks to strategically direct investments in improving living conditions for communities that experience disproportionate health impacts due to environmental conditions.

In 2016, the State of California passed Senate Bill 1000 (SB 1000)—the Planning for Healthy Communities Act— requiring cities and counties to address environmental justice in their general plans. Cities and counties may choose to adopt a separate stand-alone environmental justice element (EJ Element) or address environmental justice throughout other elements of the General Plan. The purpose is to develop objectives and policies to minimize pollution and its effects on all communities and to ensure residents are provided the opportunity to provide input in decisions that affect their quality of life. In 2016, the City of East Palo Alto updated its General Plan to fulfill the requirements of SB 1000 by adding a Health and Equity Element. This chapter of the Climate Action Plan seeks to provide a gap analysis of the Existing Conditions Assessment of the General Plan with respect to environmental justice topic areas, and provide supplemental strategies and policies aimed at reducing GHG emissions and promoting environmental justice.

The City of East Palo Alto seeks to 1) understand existing conditions with respect to environmental justice topic areas, 2) develop effective policies and strategies that reduce pollution burden for residents, improve public health outcomes, and promote environmental justice. In addition, the Climate Action Plan aims to prepare and protect East Palo Alto residents, prioritize nature-based solutions where possible, and promote community resilience.

Environmental Justice Existing Conditions Assessment
Gap Analysis
In June 2020, the Governor’s Office of Planning and Research (OPR) released updated guidelines (OPR’s EJ Element Guidelines) for the preparation of EJ elements in compliance with SB 1000. The OPR EJ Element Guidelines recommend that local agencies prepare an existing conditions assessment to understand unique or compounded health risks experienced by the community by analyzing the community’s access to environmental justice topics, listed in Table 8.1 (OPR 2020). In the City’s 2016 General Plan update, the City assessed existing conditions with respect to several environmental justice topics throughout several elements, as listed in Table 8.1.

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Packet Pg. 325 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Environmental Justice and Equity
89 Table 8.1: Existing Conditions EJ Gap Analysis
Environmental Justice Topic General Plan Element
Access to clean air and water (i.e. pollution exposure) n/an Access to public facilities and services Infrastructure, Services and Facilities Access to transit Transportation
Access to active transportation Transportation
Access to health care Health and Equity
Access to parks Parks, Open Space and Conservation
Access to healthy locally sourced food Health and Equity Access to safe and sanitary homes n/ao
Access to physical activity and recreational opportunity Parks, Open Space and Conservation As shown in Table 8.1, General Plan does not provide an existing conditions assessment with respect to pollution exposure (access to clean air and water) or housing quality (access to safe and sanitary homes). Pollution exposure is not only a central environmental justice topic, but also highly relevant to the discussion of climate action, as policies aimed at reducing greenhouse gas emissions often have the co-benefit of reducing air and water pollution. Similarly, housing quality is central to the discussion of climate action, because adequate and reliable housing protects residents from air pollution, heat, inclement weather, and reduces the risk of fire/particulate matter by removing the need for unhoused residents to build fires for cooking and warming.

Residents that do not have their basic needs met are less likely to pursue strategies that reduce greenhouse gas emissions. Moreover, housing improvements can include those that make residences more energy efficient.

This Environmental Justice Existing Conditions Assessment seeks to fill the gaps of the General Plan’s existing conditions assessments by providing an analysis of pollution exposure and housing quality consistent with OPR’s EJ Element Guidance. In addition, the City has conducted a supplementary analysis on economic justice, that while is not required by SB 1000, is relevant to the community of East Palo Alto.

Disadvantaged Communities
Per OPR EJ Element Guidance, the first step in preparing an Existing Conditions assessment is to screen for, identify, and characterize disadvantaged communities. The State of California defines “disadvantaged communities” as low-income areas that are disproportionately affected by environmental pollution and other hazards that can lead to negative health effects, exposure, or environmental degradation (California Government Code, Section 65302[h][4][A]). To identify disadvantaged communities within a city or county, the OPR recommends cities utilize the computer mapping tool CalEnviroScreen.

CalEnviroScreen
CalEnviroScreen is a computer-mapping tool published by the Office of Environmental Health Hazard Assessment (OEHHA) that identifies communities that are most affected by pollution and are especially vulnerable to its adverse effects (OPR 2020). CalEnviroScreen uses several factors, called “indicators” to determine whether a community is disadvantaged and disproportionately affected by pollution. These indicators fall into two main categories labeled “pollution burden” and “population characteristics.” Pollution burden n The Health and Equity Element includes goals and policies to reduce pollution exposure, but the existing conditions analysis does not identify areas with heightened exposure to air and water pollution. Additionally, The Infrastructure, Services and Facilities Element of the City’s General Plan includes an existing conditions assessment of potable water quality and supply, but the following analysis supplements the existing assessment using indicators recommended by OPR’s EJ Element Guidance. o The Health and Equity Element includes discussion of affordable housing, but not quality of housing.

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Packet Pg. 326 Attachment: Draft EPA 2030 Community CAP and Adaptation Strategies (3) (2756 : Draft Community Climate Action Plan and Adaptation DRAFT City of East Palo Alto Climate Action Plan
Environmental Justice and Equity
90 indicators include exposure indicators that measure different types of pollution that residents may be exposed to, and the proximity of environmental hazards to a community. Population characteristics represent characteristics of the community that can make them more susceptible to environmental hazards (such as poverty, low educational attainment, and linguistic isolation). These main categories can be separated into four distinct subcategories: 1) Exposure, 2) Environmental Effect, 3) Sensitive Population, and 4) Socioeconomic Factor. A summary of the CalEnviroScreen indicators and how they relate to environmental justice is outlined in Table 8.2.

Table 8.2: CalEnviroScreen Categories and Indicators
Category Rationale Sub-Category Indicator
Pollution Burden Exposure to hazardous
substances can cause and/or
worsen certain health
conditions.

Exposure
Ozone concentrations in air
PM 2.5 concentrations in air
Diesel particulate matter emissions
Drinking water contaminants
Use of high-hazard, high-volatility pesticides
Toxic releases from facilities
Traffic Density
Environmental Effect
Toxic cleanup sites
Groundwater threats from leaking
underground storage
Hazardous waste facilities and generators
Impaired water bodies
Solid waste sites and facilities
Population
Characteristics
People with lower income
levels, educational attainment
and fluency in English tend to
live in areas that are more
affected by air pollution and
other environmental toxins. In
addition, certain health
conditions may be caused or
worsened by toxins in the
environment.

Sensitive Population
Asthma emergency department visits
Cardiovascular disease (emergency
department visits for heart attacks)
Low birth-weight infants
Socioeconomic Factor
Educational attainment
Housing burdened low-income households
Linguistic Isolation
Poverty
Unemployment
Source: CalEPA 2017.

CalEnviroScreen uses a weighted scoring system to derive average pollution burden and population scores for each census tract, and arrives at the final CalEnviroScreen score by multiplying the pollution burden and population characteristics components together.p CalEnviroScreen converts indicator scores to percentiles that provide an indication of how the census tract compares with other areas throughout the state. In general, the higher the score or percentile, the more impacted a community is compared to other areas of the state. For example, a 75th percentile score means that the census tract is higher (more burdened) than 75 percent of other p The CalEnviroScreen website can be found at https://oehha.ca.gov/calenviroscreen.

East Palo Alto City CouncilSeptember 5, 2023

East Palo Alto City Council
September 5, 2023