East Palo Alto City Council
November 14, 2023

EAST PALO ALTO CITY COUNCIL

STUDY SESSION AGENDA
Tuesday, November 14, 2023, 6:00 PM
EPA Government Center
2415 University Avenue, 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 inperson in the Council Chambers at 2415 University Ave, First Floor East Palo Alto, CA 94303.

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International numbers available: https://zoom.us/u/aMWYF4KT East Palo Alto City Council November 14, 2023 Agenda
1 1. CALL TO ORDER AND ROLL CALL

2. APPROVAL OF THE AGENDA

3. APPROVAL OF CONSENT CALENDAR

3.1 On-Call Emergency Contract Services for storm response.

4. STUDY SESSION

4.1 Palo Mobile Estates Update

5. ADJOURNMENT
Recommendation:

Adopt a Resolution authorizing:

1. the City Manager to execute on-call contracts for emergency storm response and related services for a term of three years, each with an amount of $100,000 with Badger Daylighting Corporation; C2R Engineering, Inc.; and Yerba Buena Engineering & Construction, Inc.; and

2. An additional appropriation from the General Fund reserve in the amount of $300,000.

Recommendation:

Conduct a study session and provide guidance on options to stabilize housing for residents of Palo Mobile Estates who continue to rent their lots .

East Palo Alto City Council November 14, 2023 Agenda
2 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: November 7, 2023
ATTEST:

James Colin
City Clerk
Future Meetings:

Meeting Date Time
Regular Meeting November 21, 2023 6:30 p.m.

Regular Meeting December 5, 2023 6:30 p.m.

Reorganization Special Meeting December 5, 2023 6:00 p. m.

East Palo Alto City Council November 14, 2023 Agenda
3 CONSENT ITEM 3.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: November 14, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Humza Javed, Public Works Director
Jay Farr, Maintenance Manager
SUBJECT: On-Call Emergency Contract Services for storm response Recommendation
Adopt a Resolution authorizing:

1. The City Manager to execute on-call contracts, in a form approved by the City Attorney, for emergency storm response and related services for a term of three years, each with an amount not to exceed $100,000 with Badger Daylighting Corporation; C2R Engineering, Inc.; and Yerba Buena Engineering & Construction, Inc., including authority to approve up to two, one-year extensions for each agreement; and

2. An additional appropriation from the General Fund reserve in the amount of $300,000.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
 Promote Health & Public Safety
Background
On October 11, 2023, the Public Works Department issued a Request for Proposal (RFP) to the public, inviting bids for on-call storm response emergency services contracts. The primary objective of these contracts is to provide on-call emergency services, focusing on storm drainage improvement, debris removal, and pumping services within the geographic boundaries of the City of East Palo Alto.
4 CONSENT ITEM 3.1
In the wake of the severe storm that occurred in 2022, the Public Works Department faced an immense challenge in dealing with substantial debris accumulation at various points along the creek. This debris, transported by the force of water, became wedged within the San Francisquito creek's channel, creating an obstruction in the natural water flow. This scenario necessitated the utilization of heavy equipment for debris removal and its proper disposal.

Additionally, the city grappled with street flooding, which led to an urgent request for assistance in pumping out excess water from local streets.

Looking ahead to future weather events, the city has taken a proactive stance to bolster its storm response capabilities. The Public Works Department is in need of experienced on-call contractors equipped with the necessary heavy machinery and skilled operators. These contractors will be added to the public works roster and will be on standby to address emergencies, ensuring flood prevention and efficient management of storm-related issues.

Their responsibilities will encompass repairing and installing drainage inlets, pumping excessive water, performing valley gutter cleanup and repair, debris removal, and undertaking various storm drain construction work, all aimed at averting local flooding incidents throughout the City.

Analysis
On October 25, 2023, the Public Works Department received three proposals in response to the RFP: Badger Daylighting Corporation, C2R Engineering, Inc., and Yerba Buena Engineering & Construction, Inc. The three firms can provide equipment and a various range of services pertaining to storm response activities. For example, Badger Daylighting Corporation is a pumping company and has previously provided pumping services to the City during the Winter 2022 storms. C2R Engineering, Inc. and Yerba Buena Engineering & Construction, Inc. are licensed engineering construction firms that are able to provide on-call storm drain repair and related services.

Fiscal Impact
This recommendation is not included in the Fiscal Year 2023-24 budget. Staff is seeking an additional appropriation from the General Fund reserve in the amount of $300,000. As these are on-call contracts, the services may not be used. Any unspent funds will return to the General Fund when the contract terms end.

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

Environmental
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and 5 CONSENT ITEM 3.1
(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. RFP
6 Resolution No. XX-2023 1 of 2
RESOLUTION NO.– 2023

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ON-CALL

CONTRACTS FOR EMERGENCY STORM RESPONSE AND RELATED SERVICES FOR A TERM OF THREE YEARS, EACH WITH AN AMOUNT OF $100,000, WITH BADGER DAYLIGHTING CORPORATION; C2R ENGINEERING, INC.; AND YERBA BUENA ENGINEERING & CONSTRUCTION, INC. WITH THE OPTION OF TWO ONE-YEAR EXTENSIONS.

WHEREAS, in the wake of the Winter 2022 storms, the Public Works Department faced challenges in responding to storm related issues throughout the City; and WHEREAS, the City is taking a proactive stance to bolster its storm response capabilities; and WHEREAS, the City needs on-call support to respond to storm related emergency services such as storm drainage improvement, debris removal, and pumping services within the City of East Palo Alto; and
WHEREAS, on October 11, 2023, the Public Works Department issued a Request for Proposal (RFP) to the public, inviting bids for on-call storm response emergency services; and WHEREAS, on October 25, 2023, the Public Works Department received three proposals in response to the RFP; and
WHEREAS, three proposals were received from Badger Daylighting Corporation; C2R Engineering, Inc.; and Yerba Buena Engineering & Construction, Inc; and WHEREAS, the three firms that submitted proposals are licensed engineering firms with the expertise to repair and install drainage inlets, pump excessive water, perform valley gutter cleanup and repair, debris removal, and undertake various storm drain related work to avert local flooding throughout the City; and
WHEREAS, it is recommended the City execute contracts with all three firms for on-call storm related response; and
WHEREAS, funds for this work are available through the General fund reserve.

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. Adopts a Resolution authorizing the City Manager to execute on-call contracts for emergency storm response and related services for a term of three years, each with an amount of $100,000, with Badger Daylighting Corporation; C2R Engineering, Inc.; and Yerba Buena Engineering & Construction, Inc., including authority to approve up to two, one-year extensions for each agreement; and
An additional appropriation from the General Fund reserve in the amount of $300,000. 7 Resolution No. XX-2023 2 of 2
PASSED AND ADOPTED this 7th day of November 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
8

REQUEST FOR PROPOSALS

ON-CALL

STORM RESPONSE EMERGENCY SERVICES

CITY OF EAST PALO ALTO, CA
Issue Date: October 11, 2023
9

CITY OF EAST PALO ALTO
Incorporated in 1983
2415 University Avenue
East Palo Alto 94303
Telephone: (650) 853-3100

REQUEST FOR PROPOSALS

FOR ON-CALL STORM RESPONSE

EMERGENCY SERVICES
______________________________________________________

PURPOSE
The City of East Palo Alto intends to solicit proposals from qualified companies to provide on call services for storm water drainage improvement, debris removal and pumping services within the City of East Palo Alto boundary.

1.0 PROPOSAL SUBMITTAL REQUIREMENTS

1.1. To be considered, each bidder must submit a response to this Request for Proposals (RFP) and respond to the SELECTION CRITERIA identifying your understanding of the services requested. The proposal must be signed, in ink, by an official authorized to bind the bidder to its provision.

1.2. Proposals must be marked as “On-Call Storm Response Emergency Services” and must be received by 2:00 p.m. PST, Wednesday, October 25, 2023. The bidder is responsible for the timely receipt of their proposal. Late or faxed proposals will not be considered.

1.3. The content of this RFP, it’s under scope of work, the proposal and any mutual understandings resulting from oral presentations will become contractual obligations if a contract ensues. The failure of the successful proposer to accept these obligations may result in the cancellation of a proposed contract. The City of East Palo Alto further reserves the right to interview the key personnel assigned by the successful proposer to this project. The City of East Palo Alto reserves the right to reject any and all proposals.
10

2.0 NONDISCRIMINATORY PRACTICES

2.1. In accordance with Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d-4, the City hereby notifies all bidders that it will affirmatively insure that in regard to any contract entered into pursuant to this advertisement, minority business enterprises will be offered full opportunity to submit bids in response to this invitation and will not be discriminated against on the basis of race, color, sex, or national origin for an award.

2.2. The contractor awarded the contract will be subject to the Anti-Harassment Policies, adopted by the City Council of the City of East Palo, on December 16, 2004, which complies with AB1825. (See Attachment 2, Exhibit C, AntiHarassment Policy).

3.0 LIABILITY

3.1 The City of East Palo Alto assumes no responsibility or liability for costs incurred by the contractor prior to the signing of an agreement. The total liability of the City of East Palo Alto is limited to the terms and conditions of any contract resulting from this RFP.

4.0 INDEMNIFICATION

4.1 The contractor shall indemnify and hold harmless the City of East Palo Alto and its agents and employees, from and against all claims, damages, losses, and expenses, including attorney fees arising out of or resulting from the performance of the work, which includes all labor, materials and equipment required to produce the services required by the contract, provided that any such claim, damage, loss or expense: 1) is injury to or destruction of tangible property (other than the work itself), including the loss of use resulting there from; and 2) is caused in whole or in part by any negligent act or omission of the contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. The contractor assumes full responsibility and liability for compliance with any and all local, state, federal laws and regulations applicable to the contractor and its employees, including, but not limited to, compliance with the Occupational Safety and Health Act of 1970.

5.0 GENERAL PROPOSAL REQUIREMENTS

5.1 The proposals shall include the following:

5.1.1 Name of firm or company, business address, name of contact person, telephone number, and email address (if applicable).

5.1.2 Labor costs for all ranking classifications.
11

5.1.3 References, especially government organizations, preferably governmental entities in California; and specifically in the San Francisco Bay Area.

5.1.4 Description of your firm, personnel and services provided.

5.1.5 Reason(s) why you believe your firm should provide these services to the City of East Palo Alto.

5.1.6 Copies of all applicable licenses and insurance certificates (i.e., worker’s compensation, general liability, unemployment
compensation, etc.).

5.1.7 Any other pertinent information that you believe will assist the City in understanding your company and assurances if awarded the contract, i.e., most recent financial statement, bonding certificate.

5.2 All information contained in this proposal is subject to disclosure.

6.0 SELECTION CRITERIA

Responses to this RFP will be evaluated based upon the following factors as presented to the bid proposals:

6.1 Capability, Qualifications and References – (50%)

6.1.1 The written proposal should indicate the ability of the contractor to meet the terms of the RFP.

6.1.2 The written proposal should indicate the competence of personnel whom the bidder intends to assign to the project.

6.1.3 Qualifications will be measured by documentation of training and experience, with particular reference to work experience and an emphasis on clear understanding and implementation of Best Management Practices (BMPs) for waterway and outfall clean-up. BMPs for the indicated sites include: minimizing the impact of land disturbance and soil mobilization; eliminating the potential for waterway contamination of any disrupted or removed contents from the outfall cleanup site; and discarding of all clean-up materials in accordance with all applicable municipal codes and laws including but not limited to: appropriate debris disposal, recycling of recoverable materials (if feasible), and (where applicable) hazardous materials remediation. Experience shall be equal or greater in scope to that described herein.

6.1.4 Hazardous Waste Recovery: Competency with hazardous materials recovery is 12

not required for this proposal, however, appropriate training for identification of “unknown” substances or “potentially” hazardous waste shall be demonstrated and appropriate delegation of duties for hazardous waste mitigation shall be adhered to for proper disposal. Procedures for identifying potentially hazardous waste shall be included in the proposal along with a plan for delegation of hazardous waste cleanup.

6.1.5 Costs of potentially hazardous waste cleanup are not required to be addressed in the total cost of service proposal, as project locations are not known to contain hazardous waste. However, it is expected that contractors will retain a hazardous waste disposal company who will be on call, on stand-by during clean up and construction, in the event that hazardous materials are found. In the event that hazardous waste is identified, immediate City staff contact shall be made, and costs associated with this clean-up effort shall be addressed through a changeorder upon staff approval. Emphasis will be placed upon the qualifications and experience of the bidder’s project manager.

6.2 Method of Approach – (30%)

6.2.1 This factor will be judged based upon the Work Plan provided in the Proposal.

6.3 Price - (20%)

6.3.1 This factor will be based on the total cost of the labor for services.

7.0 NEED FOR SERVICE
The City of East Palo Alto owns and maintains storm drain infrastructure throughout the City. The storm drainage infrastructure needs response and repair especially during the rainy season. The scope of work under this RFP includes as-needed services as follows:

Repair and installation of drainage inlets, pumping of excessive water, valley gutter cleanup/repair, debris removal, and other storm drain construction work to prevent local flooding throughout the City.

8.0 GENERAL CONDITIONS

8.1 Insurance required during entire length of agreement is as follows:

1. Worker’s Compensation coverage per statutory requirements

2. Liability coverage as follows:

Bodily Injury Property Damage
$1 million per person $1 million each accident
$1 million each aggregate $1 million aggregate

8.2 The contractor shall comply with any and all rules and regulations established by 13

the city regarding security, health and safety, and conduct of contractors and employees.

8.3 The contractor shall have a designated agent on the job site to provide adequate. and continuous supervision at all times that its employees are working.

8.4 The contractor shall promptly remove any of its employees who, in the judgment of the City, either has performed his/her duties unsatisfactory or has violated the agreement.

8.5 The contractor, including all outside contractors, shall comply with all City and Cal OSHA safety policies.

9.0 SUMMARY
This RFP is designed to allow qualified service providers to demonstrate their capability of providing their services to the City of East Palo Alto.

9.1 Six copies of the completed proposals must be received no later than 2:00 p.m. on Wednesday, October 25, 2023.

Proposals must be addressed in the following manner:

City of East Palo Alto
Public Works Department
150 Tara Road
East Palo Alto, CA 94303
Attn: Jay Farr, Maintenance Manager

9.2 Format: Proposals should be 81/2 x 11 inches, bound in a single document and organized into sections following the order specified under contents.

9.3 Contents: Proposal shall contain the following information:

A. Labor Rates
Describe hourly labor rates and overtime rates for all classifications.

B. Firm Description
Provide a description of your firm and list relevant information about capabilities, rate of services, and length of time in existence.

C. Relevant Experience
Describe relevant experience dealing with storm drain systems, cleaning up outfalls, removing debris, pumping excessive flooding water from roadways, stabilizing storm drain outfalls for other public or private entities, municipalities or similar organizations.
14

D. Key Personnel Qualifications
Identify key personnel assigned to the project, their respective roles, and a synopsis of their relevant experience.

E. References
List of private, and/or public agencies or clients for whom similar work has been performed. Provide the name, title and phone number of a contact person. The City may request a copy of a similar plan prepared by your firm for another client.

F. Insurance
The individual or firm receiving the contract shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant, his agents, representatives, employees or subcontracts as set forth in Exhibit “B” which is attached hereto and incorporated by reference herein. The cost of such insurance shall be included in the consultant’s proposal.

EVALUATION CRITERIA
Proposals will be evaluated on the basis of the following criteria:
a. Capabilities and resources of the firm to perform the contracted work. b. Qualifications and experience of key individuals.
c. Ability to complete the work on a short schedule and timeline. d. Cost effectiveness.
e. How well the submitted proposal for service fits the needs of the city. f. Experience and qualification of project manager
The above selection criteria are provided to assist responders to proposals and are not meant to limit other considerations that may become apparent during the course of the selection process.

Proposals will be reviewed and evaluated by the City of East Palo Alto, and a recommendation for award of contract will be presented to the East Palo Alto City Council for disposition. Incomplete and/or late proposals will not be considered.

OTHER CONSIDERATIONS
The City of East Palo Alto reserves the right to reject any and all proposals. This Request for Qualifications does not commit the City to award a contract, pay any costs incurred in the preparation of proposals, or to procure or contract for supplies or services.

The City of East Palo Alto reserves the right to negotiate with any qualified source or to 15

cancel, in part of or in its entirety, this Request for Proposals, if it is in the best interest of the City to do so. The City may require the selected bidders to participate in negotiations, and submit such price, technical or other revisions of the proposal that may result from negotiations.

QUESTIONS
Questions should be directed in writing to:

Jay Farr
Public Works Maintenance Manager
150 Tara Road
East Palo Alto, CA 94303
Email: [email protected]
16

Sample

GENERAL CONSTRUCTION CONTRACT
This General Construction Contract (“Contract”) is made at East Palo Alto, California, dated for reference this ______ day of __, 20___, by and between the City of East Palo Alto, a municipal corporation (“City”) and [type in Contractor’s name], a [type in the type of entity], hereinafter referred to as “Contractor”, who agree as follows:

1. Scope of Work. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor, transportation, and material necessary to perform and complete the project in a good and workmanlike manner. The work consist(s) of furnishing all labor, materials, equipment, tools and services necessary to [type project description], as further set forth in the Scope of Work, Exhibit A. The Project also includes [type additional information if necessary], as called for, and in the manner designated in, and in strict conformity with, the Plans and Specifications prepared by [type who prepared Plans and Specifications] and adopted by the City. These Plans and Specifications are entitled [type exact name of Plans and Specifications].

The contractor understands and agrees that the work will be performed and completed as required in the Plans and Specifications under the sole direction and control of the Contractor, and subject to inspection and approval of the City, or its representatives. The City hereby designates as its representative for the purpose of this contract the City Engineer for Construction or an employee of the City who will be designated in writing by the Public Works Director.

2. Contract Price. The City agrees to pay and the Contractor agrees to accept, in full payment for the work above agreed to be done, the sum of 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 ]) subject to final determination of work performed and materials furnished at unit prices per Exhibit “A”, and subject to additions and deductions in accordance, as provided in the Documents and in accordance with Contract Documents.

The sum includes base bid and accepted Additive Alternate(s) No. [type number(s) of alternatives]. All other Additive Alternate(s) are rejected by City and are not included in this contract.

3. The Contract Documents. The complete Contract consists of the following documents: Notice Inviting Bids; Instructions to Bidders; Performance Bond; Payment Bond; Guaranty; Plans and Specifications for [type name of project], Project No. [type project number]. These documents are all incorporated herein by reference.

This Contract also contains the following Exhibits, attached and incorporated by reference:
17

Exhibit A – [Type in Contractor’s name] Construction Bid Proposal Exhibit B – Faithful Performance Bond
Exhibit C – Labor and Materials Bond
Exhibit D – Insurance Requirements
Exhibit E – City of East Palo Alto’s Policy Against Discrimination, Harassment, and Retaliation
The documents incorporated by reference and any exhibits, including any attachments, comprise the complete contract and are collectively referred to as the Contract Documents. Any and all obligations of the City and the Contractor are fully set forth and described therein. All of the above documents are intended to work together so that any work called for in one and not mentioned in the other or vice versa is to be executed the same as if mentioned in all documents.

4. Permits. Compliance with Law. Contractor shall, at its expense, obtain all necessary permits and licenses, easements, etc., for the construction of the project, give all necessary notices, pay all fees required by law, and comply with all laws, ordinances, rules and regulations relating to the work and to the preservation of the public health and safety.

5. Inspection by City. The contractor shall at all times maintain proper facilities and provide safe access for inspection by the City to all parts of the work, and to the shops wherein the work is in preparation. Where the Specifications require work to be specially tested or approved, it shall not be tested or covered up without timely notice to the City of its readiness for inspection and without the approval thereof or consent thereto by the latter. Should any such work be covered up without such notice, approval, or consent, it must, if required by City, be uncovered for examination at the Contractor's expense.

6. Extra or Additional Work and Changes. Should City at any time during the progress of the work request any alterations, deviations, additions or omissions from the Specifications or Plans or other Contract Documents it shall be at liberty to do so, and the same shall in no way affect or make void the contract, but will be added to or deducted from the amount of the contract price, as the case may be, by a fair and reasonable valuation, agreed to in writing between the parties hereto. No extra work shall be performed, or change be made unless in pursuance of a written order from the Public Works Director or authorized representative, stating that the extra work or change is authorized and no claim for an addition to the contract sum shall be valid unless so ordered.

7. Time for Completion. All work under this contract shall be completed before the expiration ________(XXX) calendar days from the date specified in the Notice to Proceed.

If Contractor shall be delayed in the work by the acts or neglect of City, or its employees or those under it by contract or otherwise, or by changes ordered in the work, or by strikes, lockouts by others, fire, unusual delay in transportation, unavoidable casualties or any causes beyond the Contractor's control, or by delay authorized by the 18

City, or by any cause which the City shall decide to justify the delay, then the time of completion shall be extended for such reasonable time as the City may decide.

This provision does not exclude the recovery of damages for delay by either party under other provisions.

8. Inspection and Testing of Materials. Contractor shall notify City a sufficient time in advance of the manufacture or production of materials, to be supplied under this contract, in order that the City may arrange for mill or factory inspection and testing of same, if City requests such notice from Contractor.

9. Termination for Breach, etc. If Contractor should file a bankruptcy petition and/or be judged bankrupt, or if Contractor should make a general assignment for the benefit of creditors, or if a receiver should be appointed on account of insolvency, or if Contractor or any subcontractors should violate any of the provisions of the Contract, City may serve written notice upon Contractor and its surety of City's intention to terminate the Contract.

The notice shall contain the reasons for such intention to terminate the Contract, and, unless within ten days after serving such notice, such violation shall cease and satisfactory arrangements for correction thereof be made, upon the expiration of the ten days, the Contract shall cease and terminate. In the event of any such termination, City shall immediately serve written notice thereof upon the surety and the Contractor, and the surety shall have the right to take over and perform the Contract; provided, however that, if the surety within fifteen days after the serving upon it of notice of termination does not give City written notice of its intention to take over and perform the Contract or does not commence performance thereof within thirty days from the date of the serving of such notice, City may take over the work and prosecute the same to completion by contract or by any other method it may deem advisable, for the account and at the expense of Contractor, and Contractor and its surety shall be liable to City for any excess cost occasioned City thereby, and in such event City may without liability for so doing take possession of and utilize in completing the work, such materials, appliances, plant and other property belonging to Contractor as may be on the site of the work and necessary therefor.

10. City's Right to Withhold Certain Amounts and Make Application Thereof. In addition to the amount which City may retain under Paragraph 21 until the final completion and acceptance of all work covered by the Contract, City may withhold from payment to Contractor such amount or amounts as in its judgment may be necessary to pay just claims against Contractor or any subcontractors for labor and services rendered and materials furnished in and about the work. The City may apply such withheld amount or amounts to the payment of such claims in its discretion. In so doing City shall be deemed the agent of the Contractor and any payment so made by City shall be considered as a payment made under the Contract by City to the Contractor and City shall not be liable to Contractor for any such payment made in good faith. Such payment may be made without prior judicial determination of the claim or claims.

11. Notice and Service Thereof. All notices required pursuant to this Contract shall be communicated in writing, and shall be delivered in person, by commercial courier or 19

by first class or priority mail delivered by the United States Postal Service. Transmission of notice by facsimile or by telephone may be deemed sufficient if the requirement for written notice is waived, in writing, by the receiving party. Notices delivered in person shall be deemed communicated as of actual receipt. Notices sent by mail or courier service shall be deemed communicated as of three days after mailing or dispatch, unless that date is a date on which there is no mail or delivery service, in which case communication shall be deemed to occur the next mail service or delivery day. The burden of proof of compliance with this requirement for written notice shall be on the sending party. All notices sent pursuant to this Contract shall be addressed as follows:

City: City of East Palo Alto
Public Works Maintenance Division
Attn: Jay Farr
150 Tara Road
East Palo Alto, CA 94303
Contractar: ________________________________
________________________________
________________________________

12. Assignment of Contract. Neither the Contract, nor any part thereof, nor moneys due or to become due thereunder may be assigned by Contractor without the prior written approval of City.

13. Compliance with Specifications of Materials. Whenever in the Specifications, any material or process is indicated or specified by patent or proprietary name, or by name of manufacturer, such Specifications must be met by Contractor, unless City agrees in writing to some other material, process or article offered by Contractor which is equal in all respects to the one specified.

14. Contract Security. Contractor shall furnish a surety bond in an amount at least equal to 100 percent of the contract price as security for the faithful performance of this Contract. Contractor shall also furnish a separate surety bond in an amount at least equal to 100 percent of the contract price as security for the payment of all persons for furnishing materials, provisions, provender, or other supplies, or teams, used in, upon, for or about the performance of the work contracted to be done, or for performing any work or labor thereon of any kind, and for the payment of amounts due under the Unemployment Insurance Code with respect to such work or labor in connection with this Contract, and for the payment of a reasonable attorney's fee to be fixed by the court in case suit is brought upon the bond. Bonds shall be issued by an admitted surety insurer authorized to operate in the state of California.

15. Insurance. Contractor shall not commence work under this Contract until all insurance required as set forth in Exhibit B has been obtained and such insurance has been approved by the City, nor shall Contractor allow any subcontractor to commence work on a subcontract until all similar insurance required of the subcontractor has been 20

so obtained and approved. Contractor shall furnish the City with satisfactory proof of the carriage of insurance required, and there shall be a specific contractual liability endorsement extending the Contractor's coverage to include the contractual liability assumed by the Contractor pursuant to this Contract and particularly Paragraph 16 hereof. Any policy of insurance required of the Contractor under this Contract shall also contain an endorsement providing that thirty (30) days' notice must be given in writing to the City of any pending change in the limits of liability or of any cancellation or modification of the policy. Insurance carrier shall be California-admitted.

16. Hold Harmless. Contractor agrees to defend, save, indemnify and hold harmless City and all its officers, employees, agents, independent contractors and volunteers against any and all liability, claims, judgments, or demands, including demands arising from injuries or death of persons (Contractor's employees included) and damage to property, arising directly or indirectly out of the obligations herein undertaken or out of the operations conducted by Contractor, save and except claims or litigation arising through the active negligence or willful misconduct of City, or of City's officials, agents, employees, independent contractors or volunteers who are directly responsible to City. Contractor shall make good and reimburse City for any expenditures, including reasonable attorneys' fees, City may make by reason of such claim or litigation, and, if requested by City, Contractor shall defend any such suits at the sole cost and expense of Contractor.

17. Hours of Work. Eight hours of labor during any one calendar day and forty hours of labor during any one calendar week shall constitute the maximum hours of service upon all work done hereunder, and it is expressly stipulated that no laborer, worker, or mechanic employed at any time by the Contractor or by any subcontractor or subcontractors under this Contract, upon the work or upon any part of the work contemplated by this Contract, shall be required or permitted to work thereon more than eight hours during any one calendar day and forty hours during any one calendar week, except, as provided by Section 1815 of the Labor Code of the State of California, work performed by employees of contractors in excess of eight hours per day and forty hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay. It is further expressly stipulated that for each and every violation of Sections 1811-1815, inclusive, of the Labor Code of the State of California, all the provisions whereof are deemed to be incorporated herein, Contractor shall forfeit, as a penalty to City, fifty dollars ($50.00) for each laborer, worker, or mechanic employed in the execution of this Contract by Contractor, or by any subcontractor under this Contract, for each calendar day during which the laborer, worker, or mechanic is required or permitted to work more than eight hours in any one calendar day and forty hours in any one calendar week in violation of the provisions of the Sections of the Labor Code.

Contractor, and each subcontractor, shall, in accordance with California Labor Code Section 1776 or as the same may be later amended, keep accurate payroll records showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with work under 21

this agreement. Each payroll record shall contain or be verified by a written declaration under penalty of perjury, in accordance with Labor Code Section 1776(a). Such payroll records shall be made available at all reasonable times at the Contractor’s principal office to the persons authorized to inspect such records pursuant to Labor Code Section 1776. A certified copy of all payroll records shall be made available for inspection or furnished upon request to a representative of the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards of the Department of Industrial Relations, as well as to the City’s representative. In the event the Contractor or a Subcontractor fails to comply in a timely manner within ten days to a written notice requesting the records, such contractor or subcontractor shall forfeit twenty-five dollars ($25.00) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated, in accordance with Labor Code Section 1776(g).

18. Wage Rates. Pursuant to the Labor Code of the State of California, or any applicable local law, City has ascertained the general prevailing rate per diem wages and rates for holidays, and overtime work in the City, for each craft, classification or type of laborer, worker, or mechanic needed to execute this Contract. City has adopted, by reference, the general prevailing rate of wages applicable to the work to be done under the Contract, as adopted and published by the Division of Labor Standards Enforcement and Labor Statistics and Research of the State of California, Department of Industrial Relations, to which reference is hereby made for a full and detailed description. A copy of the prevailing wage rates may be reviewed in the office of the Public Works Director, City of East Palo Alto, 1960 Tate Street, East Palo Alto, California. Wage rates can also be obtained through the California Department of Industrial Relations website at:
http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm
Neither the notice inviting bids, nor this Contract shall constitute a representation of fact as to the prevailing wage rates upon which the Contractor or any subcontractor may base any claim against City.

It shall be mandatory upon Contractor and upon any subcontractor to pay not less than the specified rates to all laborers, workers, and mechanics employed in the execution of the Contract. It is further expressly stipulated that Contractor shall, as a penalty to City, forfeit fifty dollars ($50.00) for each calendar day, or portion thereof, for each laborer, worker, or mechanic paid less than the stipulated prevailing rates for any work done under this Contract by Contractor or by any subcontractor; and Contractor agrees to comply with all provisions of Section 1775 of the Labor Code.

In case it becomes necessary for Contractor or any subcontractor to employ on the project under this Contract any person in a trade or occupation (except executives, supervisory, administrative, clerical, or other non-manual workers as such) for which no minimum wage rate is herein specified, Contractor shall immediately notify City who will promptly thereafter determine the prevailing rate for such additional trade or occupation and shall furnish Contractor with the minimum rate based thereon. The minimum rate thus furnished shall be applicable as a minimum for such trade or occupation from the time of 22

the initial employment of the person affected and during the continuance of such employment.

19. Accident Prevention. Precautions shall be exercised at all times for the protection of persons (including employees) and property. The safety provisions of applicable laws, building and construction codes shall be observed. Machinery, equipment, and other hazards shall be guarded or eliminated in accordance with the safety provisions of the Construction Safety Orders issued by the Industrial Accident Commission of the State of California.

20. Contractor's Guarantee. City shall not, in any way or manner, be answerable or suffer loss, damage, expense or liability for any loss or damage that may happen to the building, work, or equipment or any part thereof, or in, on, or about the same during its construction and before acceptance. Contractor unqualifiedly guarantees the first-class quality of all workmanship and of all materials, apparatus, and equipment used or installed by Contractor or by any subcontractor or supplier in the project which is the subject of this Contract, unless a lesser quality is expressly authorized in the Plans and Specifications, in which event Contractor unqualifiedly guarantees such lesser quality; and that the work as performed by Contractor will conform with the Plans and Specifications or any written authorized deviations therefrom. In case of any defect in work, materials, apparatus or equipment, whether latent or patent, revealed to City within one year of the date of acceptance of completion of this Contract by City, Contractor will forthwith remedy such defect or defects without cost to City.

21. Liquidated Damages. Time shall be the essence of this Contract. If Contractor fails to complete, within the time fixed for such completion, the entire work mentioned and described and contracted to be done and performed, Contractor shall become liable to City for liquidated damages in the sum of ________ Hundred and No/100 Dollars ($XXX.00) for each and every calendar day during which work shall remain uncompleted beyond such time fixed for completion or any lawful extension thereof. The amount specified as liquidated damages is presumed to be the amount of damage sustained by City since it would be impracticable or extremely difficult to fix the actual damage; and the amount of liquidated damages may be deducted by City from moneys due Contractor hereunder, or its assigns and successors at the time of completion, and Contractor, or its assigns and successors at the time of completion, and its sureties shall be liable to City for any excess.

22. Additional Provisions.

None.
23

IN WITNESS WHEREOF, two identical counterparts of this contract, each of which shall for all purposed be deemed an original thereof, have been duly executed by the parties.

CITY OF EAST PALO ALTO [INSERT CONTRACTOR’S NAME &
a municipal corporation TYPE OF COMPANY]
License No. __________
By By
Melvin E. Gaines [INSERT NAME]
City Manager [INSERT TITLE]
By
[INSERT NAME]
By [INSERT TITLE]
James Colin
City Clerk

APPROVED AS TO CONTENT
By_______________________________
Humza Javed
Public Works Director

APPROVED AS TO FORM:

John D. Lê
City Attorney
24

Exhibit A
Pricing Sheet
No. Position/Title Hourly Rate Overtime Rate Emergency Rate 1 Equipment Operator $ $ $
2 Truck Driver $ $ $
3 Laborer $ $ $
4 Foramen $ $ $
5 Superintendent $ $ $
6 Hydro Vacuum Truck Operator $ $ $
7 Apprentice Worker $ $ $
8 Journeyman Worker $ $ $
9 Traffic Control $ $ $
10 Lead Worker $ $ $
25

EXHIBIT B

INSURANCE REQUIREMENTS

PLEASE GIVE TO YOUR INSURANCE AGENT
There shall be a contractual liability endorsement extending the GRANTEE’S coverage to include the contractual liability assumed by the GRANTEE pursuant to this Agreement. These certificates shall specify or be endorsed to provide that thirty (30) days' notice must be given, in writing, to the CITY, at the address shown in Section 22 of the Agreement of any pending cancellation of the policy. GRANTEE shall notify CITY of any pending change to the policy. All certificates shall be filed with the City.

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

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

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

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

E. 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 26

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.

F. 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 non-contributory 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.

G. 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).

H. 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.

I. 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.

J. 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.

K. The City of East Palo Alto, its Council Members, subsidiary agencies, directors, officers, agents, employees, and servants shall be named as additional insured on any such policies of comprehensive general and automobile liability insurance, except professional liability and worker's compensation, which shall also contain a provision that the insurance afforded thereby to the CITY, its subsidiary agencies, and their officers, agents, employees, and servants shall be primary insurance to the full limits of liability of the policy, and that if the CITY, its subsidiary agencies and their officers and employees have other insurance against a loss covered by a policy, such other insurance shall be excess insurance only.
27

EXHIBIT C
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 CONSULTANTs as well as to all applicants for City positions.

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. 28

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.

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.
29

IV. REPORTING DISCRIMINATION, HARASSMENT OR RETALIATION Any City employee, volunteer, intern, vendor, CONSULTANT, 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 CONSULTANTs, 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 infestation, or delegate 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 30 STUDY SESSION ITEM 4.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: November 14, 2023
TO: Honorable Mayor and Members of the City Council
BY: Yajaira Morales, Housing Project Manager
Karen Camacho, Housing & Economic Development Manager
SUBJECT: Palo Mobile Estates Update
Recommendation
Conduct a study session and provide guidance on options to stabilize housing for residents of Palo Mobile Estates who continue to rent their lots.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
 Promote Housing, Economic and Workforce Development
Background
Palo Mobile Estates Mobile Home Park
Palo Mobile Estates (PME), formerly owned by Palo Mobile Estate Associates, is a mobile home park (Park) located at 1885 E. Bayshore Road with 117 rental spaces. In May 2020, Palo Mobile Estate Associates informed the park residents that they would be moving forward with a partial resident-owned park conversion process (similar to a condo conversion), which had been recently approved by the California Department of Real Estate. Prior to park conversion, the park contained 100 spaces occupied by resident owned coaches/mobile homes and 17 spaces occupied by Park owned coaches/mobile homes. PME was formerly subject to the City’s 1988 Rent Stabilization and Eviction for Good Cause Ordinance. 31 In 2008-2010, the City received and approved PME’s subdivision map application. As part of the Conditions of Approval and a settlement between the Park owner and the park residents, which was incorporated into the Conditions of Approval, PME is required to provide residents, who occupied the Park on or before January 1, 2009 with particular benefits.1 City Funds to Promote Affordable Rental and Ownership Opportunities On July 29, 2021, the City of East Palo Alto (City) executed a contract (Agreement) with EPACANDO and PAHALI CLT (collectively, Contractor) to help ensure that PME remains affordable for current and future residents.

The primary objective of the Agreement is to stabilize the housing cost of PME residents by increasing their degree of ownership. The City appropriated $2 million to fund this effort. After considering a public-private partnership that could add additional funding to this effort, and being unable to establish any viable partnerships, the Contractor devised two options:

1. Loan. The City would offer loans to PME residents for up to 50% of the land price. The basic terms included zero interest and no payments, repayment due on the sale, but with a restriction on resale price. The purpose behind the resale restriction is to ensure affordability for the next buyer.

2. Lease. A second option consisted of a City loan to the Community Land Trust (CLT) on similar terms to the first option to purchase the underlying lot with a leaseback to the PME resident on affordable terms in perpetuity.

The foregoing options were presented to the residents. Specifically, staff and Contractor explained that because of the evolving legal landscape—conversion of PME to resident ownership meant East Palo Alto rent control would be removed and replaced by State law, which only offered protections to low-income residents—considering these options were paramount.

To date, PME residents opted not to, or were unable (for one reason or another) to take advantage of either of the foregoing options to purchase their mobile home space. So far, only five PME residents have purchased their space, none of them utilizing these options.

Evaluation of Initial Options
Committed to increasing housing stability for PME residents, Contractor and City staff set out to identify challenges or obstacles to PME residents receiving City loans or leasing from the CLT and to propose potential modifications to these options. Accordingly, on December 8, 2022, Contractor met with staff to delve into the issues surrounding the City loan. The team identified four key obstacles:

1. Lack of Purchase Money. Despite the City’s 50% cash contribution, the loan terms required a 50% contribution from the PME resident for the transaction to close. PME residents reported being unable to make that level of contribution from savings or loan.

1 For more background on PME’s park conversion process, see October 14, 2020 staff report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?ID=1426&highlightTerms=palo%20mobile%20estates. 32 ________________________________
2 This conclusion is based on survey data. Over the course of Fall 2020, Winter 2020, and Summer 2021, we conducted three surveys. We spoke with 90% of residents and gathered AMI information for 62 households. According to the survey, three households out of 62 had an AMI above 80%. Although the data is slightly dated, it is probably still representative.

2. Lack of Qualifications. Many PME residents cannot meet the qualifications required for the loan. The primary stumbling blocks were low credit rating, legal work status, and in a few cases, high household income (above the 80% area median income),

3. Lack of Lending Partners. The contractor and City staff found very few (if any) institutional lending partners. Until 51% or more of the lots at PME are resident-owned (no longer owned by the former park owner), lot sales do not qualify for conventional financing. Therefore, it is necessary to work with hard-to-find specialty lenders.

4. Deed Restricted Resale Price. The contractor and City staff also found that many residents expressed hesitation regarding the deed-restricted resale price, which may deter them from applying for the loan altogether. But, as noted above, this was imposed to ensure affordability for an incoming resident.

In light of the City’s continued commitment to stabilizing housing for PME residents who continue to rent their lots and a request from said residents, the City has requested Contractor to take an additional look and furnish the analysis below of what additional options PME residents could be offered. Based on the contractor’s survey of residents, and individual meetings with prospective borrowers, the Contractor estimates that as few as 3-4 mobile homeowners would qualify and would opt in if additional program options were available to expand ownership, although a full survey would need to be conducted to know for certain. The purpose of this Study Session report is to present additional options that could stabilize the housing costs of PME residents.

Analysis
Based on their experience and building upon prior options, Contractor has offered the following program adjustments for consideration, in no particular order:

1. Adjust Terms (income limit and loan amount): The qualifying income limit could be raised from 80% AMI to 120% AMI. Also, the loan amount could be increased substantially, from 50% of land price to 80%. This adjustment would be easy to implement and would expand the pool of qualified buyers, by making eligible the estimated 6 mobile homeowners whose incomes are above 80% AMI. However, we expect only a few households in the expanded pool will purchase their lot even with these adjustments, because it will not address the other challenges of credit, savings, work status, and the unavailability of an experienced, enthusiastic lender.
33 2. Remove Resale Price Restriction: In the current program, borrowers pay no interest and make no monthly payments. Borrowers are required to pay back the loan principal when they eventually leave and sell their mobile home and lot. But when they sell, the resale price is restricted; rate of increase indexed to increase in Area Median Income.

Removing these resale price restrictions would increase the popularity of the loan program with or without the adjustments mentioned above. However, doing this would pose significant policy issues. It fails to deliver on the City’s policy objective of assuring long-term affordability for future owners by adding affordable units to the City’s inventory. Also, it could also be interpreted as giving preferential treatment to PME residents vis-à-vis participants of the City’s established BMR program, which has resale price restrictions. And again, it will not address the other basic challenges.

3. Loan 100% of Lot Cost: For most eligible households, the primary obstacle is cost.

This program adjustment—loaning 100% of cost—would probably be attractive to PME residents struggling to afford their current payments, because they would pay no lot rent, no mortgage, and only pay property taxes. As with the previous point, this adjustment could be viewed as preferential treatment of PME residents as compared to the City’s BMR program, in which buyers must come up with a down-payment and carry a mortgage to cover their portion of the discounted price. However, many PME residents own their mobile homes and rent the lots where their homes are located. In such circumstances, PME residents already have equity in their mobile homes.

Another, more straightforward disadvantage of this adjustment is that the $2 million currently allocated to the loan program would only fund loans for half as many PME residents.

Of these potential adjustments, staff recommend increasing the income eligibility limit to 120% AMI and the maximum loan amount to 80% of land price. This would fund 7 to 10 loans, which should be enough to fund all eligible applicants with adequate financial capacity.

Two additional changes to the status quo are worth mentioning for context but are not changes to the City’s loan program.
 CLT Buys Lot: As contemplated in the Agreement, a nonprofit could buy a lot, replacing the current park owner as landlord and stabilizing a resident who has not purchased their lot. This approach has no incremental cost to the PME resident and assures affordability for current and future residents. However, so far, the former park owner, who is still the owner of almost all of the lots, has been unwilling to sell to a CLT. 34 ________________________________
2 This conclusion is based on survey data. Over the course of Fall 2020, Winter 2020, and Summer 2021, we conducted three surveys. We spoke with 90% of residents and gathered AMI information for 62 households. According to the survey, three households out of 62 had an AMI above 80%. Although the data is slightly dated, it is probably still representative.  Loan 100% of Lot Cost by EPACANDO Complementing City Loan. This approach offers the benefit of Adjustment 3 above (100% loan to the buyer), but with the City not funding 100% of the price. The former park owner might be motivated to sell lots on this basis because the CLT would not be the owner and because it might accelerate reaching the 51% ownership threshold faster, making their lots more marketable with conventional financing. This option does not rely on finding a specialty lender, because in essence EPACANDO would assume that role. Although this approach would not require any changes to the City’s loan program, it would become more feasible if City raised the income limit and maximum loan amount.

Fiscal Impact
On June 1, 2021, the City Council allocated $2,000,000 toward loans for Palo Mobile Estates residents. There is no new fiscal impact associated with this staff report, as City Council continues to maintain the $2,000,000 commitment.

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

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

Attachments

1. Letter to PME residents, dated October 30th, 2023
35 VIA U.S. MAIL
November 8, 2023
Resident/Occupant
1885 E. Bayshore Road
East Palo Alto, CA 94303
RE: Consideration of Potential Study Session Related to Palo Mobile Estates Dear Palo Mobile Estates Resident:

On June 12, 2023, Mr. Rigney met with staff, including the City Attorney’s Office, to discuss options to further stabilize housing for certain residents who had been offered, but declined, financing options for the purchase of the lots underlying their mobilehomes at Palo Mobile Estates (PME). Mr. Rigney requested that the Council convene a study session. After this request, staff resolved to first internally explore options to assist residents of PME. In the Fall, City staff plans to agendize a study session to discuss these options. To that end, we would like to hear from you.

Background
In or around June of 2021, the City of East Palo Alto (City) executed a contract (Agreement) with EPACANDO and PAHALI CLT (collectively, Contractor) to ensure that PME remains affordable for current and future residents. The primary objective of the Agreement is to stabilize the housing cost of PME residents by increasing their degree of ownership. After considering a public-private partnership for funding purposes, of which there were no takers, the Contractor devised two options:

1. Loan. The City would offer loans to PME residents for up to $100,000 or 50% of the land price. The basic terms included zero interest and no payments due on the sale, but with a restriction on resale price. The purpose behind the resale restriction is to ensure affordability for the next buyer.

2. Lease. A second option consisted of a City loan to the Community Land Trust (CLT) on similar terms to the first option to purchase the underlying lot with a leaseback to the PME resident on affordable terms in perpetuity.

The foregoing options were presented to PME. Specifically, staff and Contractor explained that because of the evolving legal landscape—conversion of PME to resident ownership meant East Palo Alto rent control would be stripped and displaced by state law, which only offered protections to low-income residents—considering these options were paramount. To date, PME residents opted not to, or were unable (for one reason or another) to take advantage of either of the foregoing options. Instead, only five PME residents purchased their lots, none of them utilizing these options.

It is estimated that as few as 3-4 mobile homeowners could potentially qualify and would opt in if 36 Re: Consideration of Potential Study Session Related to Palo Mobile Estates Page: 2 of 2
additional program options were available to expand ownership, although a full survey would need to be conducted to know for certain.

Committed to increasing housing stability for PME residents, Contractor and the City set out to identify challenges or obstacles and to propose potential modifications to the above offerings.

Accordingly, on December 8, 2022, Contractor met with staff to delve into the issues surrounding the City loan. The team identified four key obstacles:

1. Lack of Purchase Money. Despite the City’s 50% cash contribution, the loan terms required a 50% contribution from the PME resident for the transaction to close. PME residents reported being unable to make that level of contribution from savings or loan.

2. Lack of Qualifications. Many PME residents cannot meet the qualifications required for the loan. The primary stumbling blocks were low credit rating, legal work status, and in a few cases, high household income (above the 80% area median income),

3. Dearth of Lending Partners. Contractor and staff found very few (if any) institutional lending partners. Until 51% or more of the lots at PME are resident-owned (no longer owned by the former park owner), lot sales do not qualify for conventional financing.

Therefore, it is necessary to work with hard-to-find specialty lenders.

4. Deed Restricted Resale Price. Contractor and staff also found that many residents expressed hesitation regarding the deed-restricted resale price, which may deter them from applying for the loan altogether. But, as noted above, this was imposed to ensure affordability for an incoming resident.

In light of the City’s continued commitment to stabilizing housing for PME residents who continue to rent their lots and a request from said residents, the City has requested Contractor to take an additional look and furnish the analysis below of what additional options PME residents could be offered, which will be presented to the Council at in the Fall at a study session.

Analysis
Based on our experience and building upon prior options, Contractor has offered the following options for consideration:

1. Option 1 – Adjust Terms (income limit and principal): Raise the qualifying income limit from 80% AMI to 140% AMI, and/or substantially increase the loan amount, for example, to 80% of land value or $200,000 (currently at 50% or $100,000). Option 1 would be relatively easy to implement and may expand the pool of qualified buyers. However, we expect only a few households in the expanded pool will purchase their lot under this option,1

1 This conclusion is based on survey data, which is likely to hold true today as well. Over the course of Fall 2020, Winter 2020, and Summer 2021, we conducted three surveys. We spoke with 90% of residents and gathered AMI information for 62 households. According to our records, three households had an AMI above 80%. Although the data is slightly dated, it is probably still representative. 37 Re: Consideration of Potential Study Session Related to Palo Mobile Estates Page: 2 of 2
because it will not address the challenges of credit, savings, work status, and the unavailability of an experienced, enthusiastic lender.

2. Option 2 – Remove Resale Price Restriction: Removing resale price restrictions, would dramatically increase the popularity of the loan program with or without the Option 1 adjustments. However, doing this would not help with loan qualification, and it poses significant political and policy issues. It fails to deliver on the City’s policy objective of assuring long-term affordability for future owners. It could also be interpreted as giving preferential treatment to PME residents vis-à-vis participants of the City’s established BMR program, which also has resale price restrictions.

3. Option 3 – Loan 100% of Lot Cost: Option 3 addresses the primary obstacle, cost, which a significant concern for many. This option might be attractive for PME residents struggling to afford the current payments because they would pay zero lot rent, zero loan payments, and only pay property taxes. As with Option 2, this option could be viewed as preferential treatment of PME residents as compared to the City’s BMR program, in which buyers must get a mortgage to cover their portion of the discounted price. In response, PME residents might point out that, unlike BMR homebuyers, they already own their homes. On balance, the fairness argument is attenuated under this option rather than Option 2. In either case, the resale restriction is likely viewed to be unfair vis-à-vis BMR program participants despite this argument. An additional disadvantage is that the funds currently allocated to the program would fund only half as many loans.

4. Option 4 – CLT Buys Lot: As contemplated in the Agreement, a nonprofit landlord would replace the current park owner as landlord and stabilize the rent for those PME residents who have not purchased their lot. Option 4 has no incremental cost to the PME resident and assures affordability for current and future residents. However, the former park owner, who is still the current owner of almost all of the lots, has been unwilling to sell to a CLT.

5. Option 5 – Loan 100% of Lot Cost; 50% from City, 50% from EPACANDO. Option 5 offers the benefit of Option 3 (100% loan to the buyer) while keeping the City’s program commitment at 50%. It would facilitate EPACANDO being able to conduct a fundraising campaign to retire this debt to the City. The former park owner might be motivated to sell lots because the CLT would not be the owner and because it might accelerate reaching the 51% ownership threshold faster, making their lots more marketable with conventional financing. Like Option 3, this option does not rely on finding a specialty lender. In essence, it enables EPACANDO to assume the role of the specialty lender. This Option is more complex than others, which may be a disadvantage.

Next Actions
With this letter, the City invites you, as a PME resident, to provide written and oral feedback on the foregoing five (5) options, and to offer any additional suggestions you may have at a study session during a special City Council meeting on November 14, 2023, 6:30 p.m. 38 Re: Consideration of Potential Study Session Related to Palo Mobile Estates Page: 2 of 2
You will be able to participate in the City Council meeting via Zoom or by attending in-person in the Council Chambers at 2415 University Ave, First Floor East Palo Alto, CA 94303, as follows:
https://us06web.zoom.us/j/89115697424 Or join by phone: Dial (for higher quality, dial a number based on your current location): US: +1 669 900 6833 or + 1 346 248 7799 or + 1 253 215 8782 or + 1 312 626 6799 or + 1 929 205 6099 or + 1 301 715 8592 Webinar ID: 891 1569 7424 International numbers available:
https://zoom.us/u/aMWYF4K.

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.

Cc: Lisa Gauthier, Mayor (email only)
Ruben Abrica, Councilmember (email only)
Melvin E. Gaines, City Manager (email only)
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