Agenda packet — East Palo Alto City Council, July 25, 2024

East Palo Alto City Council July 25, 2024 Agenda
1 EAST PALO ALTO JOINT CITY

COUNCIL/PLANNING COMMISSION

STUDY SESSION AGENDA
Thursday, July 25, 2024, 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.

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. 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 1 East Palo Alto City Council July 25, 2024 Agenda
2 REQUESTS TO APPEAR REMOTELY
Pursuant to Government Code Section 54953, members of the body may appear remotely for the following reasons:
a. Teleconference Exception (Gov’t Code § 54953(b)): None. b. Just Cause (Gov’t Code § 54953(f)(A)(i)):
• Mayor Antonio Lopez (Gov’t Code § 54953(j)(2)(B) (contagious illness).

1. CALL TO ORDER AND ROLL CALL

1. City Council Roll Call

2. Planning Commission Roll Call

2. APPROVAL OF THE AGENDA

3. APPROVAL OF CONSENT CALENDAR

1. Annual Street Resurfacing and Maintenance Project
2025/2025 Recommendation:

Adopt a resolution:

1. Approving the Plans, Specifications, and Estimates for the Annual Street Resurfacing and Maintenance Project 2024/2025 (Project); and

2. Authorizing the City Manager to advertise the project to solicit bids for the construction phase.

2. Memorandum of Understanding with Bay Area Community Resources for a Sustainability Coordinator Fellow
Recommendation: Authorize the City Manager to negotiate and execute a Memorandum of Understanding with Bay Area Community Resources, in a form approved by the City Attorney, in an amount not-to-exceed $28,000 in matching funds to hire a Sustainability Service Corps Fellow to continue implementation of the East Palo Alto Climate Action Plan 2030 and support other sustainability efforts on behalf of the City.

3. Muwekma Ohlone Resolution
Recommendation:

Present the Muwekma Ohlone Resolution.

4. Renter’s Act Resolution
Recommendation:

Present the Renter’s Act Resolution.
2 East Palo Alto City Council July 25, 2024 Agenda
3 5. Amendment to Agreement with EPACANDO for CalHome ADU/JADU Loan Program Administration
Recommendation: Adopt a resolution:

1. Authorizing the City Manager to negotiate and execute a First Amendment to the License and Grant Agreement (“First Amendment”) with EPACANDO, in form approved by the City Attorney, to act as Administrative Subcontractor, to extend the term for the duration of the CalHome Grant period through June 7, 2025; and

2. Finding that 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.

6. Axon Renewal MSPA
Recommendation: Adopt resolution for Axon Enterprise,Inc. MSPA for Five years-contract

7. Willie Howard Mays Jr.

Proclamation Recommendation:

Present the proclamation for Willie Howard Mays Jr.

8. Providing a bridge loan to Creative Montessori Learning Center of EPA Recommendation: Adopt a Resolution approving a loan of $96,000 to the Creative Montessori Learning Center (CMLC) to help alleviate its current financial crisis and appropriating such an amount from Children Youth and Family Services (CYFS) Transient Occupancy Tax (TOT) Fund in the fiscal year 2024-25 Budget.

4. CLOSED SESSION

4.1 CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6.)
Unrepresented employee: City Manager.

5. PUBLIC COMMENT

6. POLICY AND ACTION

1. Ravenswood Business District / 4 Corners Subsequent Environmental Impact Report (SEIR) – Public Draft Overview and Comparison of Study Scenarios
Recommendation:

Host a Joint Study Session on the Public Draft of the Ravenswood Business District / 4 Corners Subsequent Environmental Impact Report to: ask 3 East Palo Alto City Council July 25, 2024 Agenda
4 questions regarding the Public Draft SEIR, provide additional direction on the preferred maximum development scenario, and continue discussing the draft Community Benefits Framework.

7. ADJOURNMENT
Upcoming meetings:

Regular Meeting September 3, 2024 6:30 PM
Regular Meeting September 17, 2024 6:30 PM
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.

View documents related to this agenda on the City's website: https://www.cityofepa.org/citycouncil/page/agenda-and-minutes 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: July 19, 2024
ATTEST:

James Colin
City Clerk
4 CONSENT ITEM 3.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Batool Zaro, Senior Engineer
Michael A. Cortez, Assistant Engineer
SUBJECT: Annual Street Resurfacing and Maintenance Project 2025/2025 Recommendation
Adopt a resolution:

1. Approving the Plans, Specifications, and Estimates for the Annual Street Resurfacing and Maintenance Project 2024/2025 (Project); and

2. Authorizing the City Manager to advertise the project to solicit bids for the construction phase.

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

Priority: Implement the Comprehensive Transportation and Mobility Plan Priority: Promote Health & Public Safety
Background
Through the MTC Pavement Management Technical Assistance Program 24 (PTAP-24) program, the City hired a consultant to conduct an inspection of the City’s pavement system to determine the current condition of the roadways. This data was input into a street maintenance software, called Streetsaver for use in determining the best solution to maintain and improve the City’s streets. The software analyzes the rate of decay, previous maintenance treatments, size of the road, and available funds to determine the best combination of treatments to boost the 5 CONSENT ITEM 3.1
road network’s health. Pavement Management Plan (PMP) generally forecasts five (5) years of treatments and is updated every two (2) years when the roads are reinspected.

On May 21, 2024, City Council approved the Pavement Management Plan (PMP) 2024-2028.

The updated PMP was used as a guide in preparing and budgeting for the Annual Street Resurfacing Project (ASRP).

On June 19, 2024, The Public Works and Transportation Commission recommended to City Council approval of the final 2024/2025 ASRP Plans, Specifications, and Estimates (PS&E), based on the 60% package.

Analysis
The Capital Improvement Program includes funding for the ongoing Annual Street Rehabilitation/Preventive Maintenance Program, with this year’s project being named the Annual Street Resurfacing and Maintenance Project 2024/2025 (CIP Project ST-07-24).

The Annual Street Resurfacing Projects are generally designed in-house by Engineering staff.

This way, all of the available funds are able to be expended towards the construction phase. The upcoming 2024 project combines multiple capital improvement projects (CIP) in order to create a larger project that will deliver more competitive bids. The proposed Annual Street Resurfacing project to be bid includes the following sub-projects: Annual Street Resurfacing (ST-07), Annual signage and striping (ST-15), Annual sidewalk repair (ST-11), Safe route to school (ST-03), and Bicycle and pedestrian improvements (ST-09).

The project will consist of rehabilitation and preventive maintenance of City streets including pothole/base repairs, crack sealing, slurry seals, and pavement overlays. Rehabilitation and maintenance work on public streets needs to be coordinated with other City projects, utility company excavations, and private development projects on a cycle that sustains a high Pavement Condition Index (PCI) for all City streets.

The streets to be rehabilitated in 2024 were identified as needing rehabilitation in the PMP. The list, which was further analyzed and refined by Public Works staff, was approved by City Council.

These streets, in addition to some others, have been added to the scope of the 2024/2025 Annual Street Resurfacing Project to create the Plans, Specifications, and Estimates (PS&E).

The full set of 100% Plans can be found on the City’s website under the Annual Street Resurfacing page:
https://www.cityofepa.org/publicworks/project/annual-street-resurfacing.

In addition to pavement rehabilitation, the project will also include improved striping configurations for bicycle facilities. The bicycle improvements will follow the plans outlined in the City Bicycle Master Plan. Every crosswalk that is re-surfaced in the project areas will be restriped to improve pedestrian safety. Moreover, the project will include curb ramp improvements 6 CONSENT ITEM 3.1
in accordance with Americans with Disability Act (ADA) regulations and sidewalk replacement/repair. Additionally, the approved speed humps on Kavanaugh Street will be completed as part of this project.

The project also includes an Alternate bid for speed calming bulb-outs along various streets as listed in the Mobility Study which was approved by City Council in 2020 and locations recommended by the PWTC.

A summary of the proposed improvements and roadway sections can be seen in Attachment 2.

Fiscal Impact
The project will be financed from multiple sources as indicated in the table below:

Source Amount Uses
Measure A $3,590,982 Pedestrian, Mobility and Roadway
Improvements
Measure M $100,000 Roadway Improvements
Gas Tax $2,020,638 Roadway Improvements
Measure W $995,614 Pedestrian Improvements
CIP Fund* $350,000 Roadway Improvements (dig-outs)
Total $6,957,234
*Transfer from General Fund was approved during the last budget session There is no budget amendment required by this action for now. Staff will bring this item back to Council for the contractual process and to discuss appropriation.

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

Environmental
The action being considered 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.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement. 7 CONSENT ITEM 3.1
Analysis of Levine Act Compliance: Not applicable
Attachments

1. Resolution.

2. Street List Summary
8 Resolution No. XX-2024 1 of 2
RESOLUTION NO. XX– 2024

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

APPROVING THE PLANS, SPECIFICATIONS, AND ESTIMATES FOR THE ANNUAL STREET RESURFACING PROJECT 2024/2025 AND AUTHORIZING THE CITY MANAGER TO ADVERTISE

THE PROJECT TO SOLICIT BIDS FOR THE CONSTRUCTION PHASE
WHEREAS, the Capital Improvement Program includes funding for the ongoing Annual Street Rehabilitation/Preventive Maintenance Program, with this year being named the Annual Street Resurfacing and Maintenance Project 2024/2025 (CIP Project ST-07-24); and WHEREAS, the proposed project includes pavement rehabilitation, signage, striping, sidewalk, bicycle and pedestrian improvements city wide; and
WHEREAS, the Public Works and Transportation Commission, at its June 19, 2024 meeting, approved the Plans, Specifications and Estimates (PS&E) for the Annual Street Resurfacing Project 2024/2025 based on the 60% plans; and
WHEREAS, Staff recommends approval of the PS&E for the Annual Street Resurfacing and Maintenance Project 2024/2025 (CIP Project ST-07-24).

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 Plans, Specifications, and Estimates for the Annual Street Resurfacing and Maintenance Project 2024/2025;

3. Authorizes the City Manager to advertise the project to solicit bids for the construction phase; and

4. Finds that the proposed project 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.

PASSED AND ADOPTED this 25th day of July 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
9 Resolution No. XX-2024 2 of 2
Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
10 R
11 R
12 R
13 R
14 R
15 R
16 CONSENT ITEM 3.2

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Fatima Khan, Environmental Services Aide / Management Analyst Humza Javed, Public Works Director
SUBJECT: Memorandum of Understanding with Bay Area Community Resources for a Sustainability Coordinator Fellow
Recommendation
Authorize the City Manager to negotiate and execute a Memorandum of Understanding with Bay Area Community Resources, in a form approved by the City Attorney, in an amount not-to-exceed $28,000 in matching funds to hire a Sustainability Service Corps Fellow to continue implementation of the East Palo Alto Climate Action Plan and Adaptation Strategies 2030 and support other sustainability efforts on behalf of the City.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
o Promote Health and Public Safety
Background
On September 5, 2023, the City of East Palo Alto adopted the updated Climate Action Plan and Adaptation Strategies 2030 (CAP). The CAP has been implemented with the support of an ongoing partnership with Bay Area Community Resources (BACR) and their Sustainability Service Corps Program, which places early-career sustainability professionals at various host sites to increase staff capacity and advance environmental projects.

This program is made possible through AmeriCorps, a national service learning program which is partially funded by the United States federal government. BACR administers this competitive 17 CONSENT ITEM 3.2
program, with 50% of the cost of the Fellowship covered by federal funds. The City is responsible for the remaining 50% ($28,000).

The City has been in this partnership with BACR since September 2022 and was selected for a second 11-month Fellow placement in July of 2023. The City then applied for and was selected to renew for a third placement in April 2024. Staff has completed the interview process and awarded the Fellowship to a candidate who will begin their term with the City in September 2024 and end in July 2025.

Climate Action Plan
On June 4, 2024, the current Fellow provided the City Council with an implementation progress report encompassing their and other environmental staff’s efforts in the implementation of this plan since its passage. Most notably, strides have been made in City fleet planning and electric vehicle transitions, exploring various options for existing building electrification strategies, and pursuing funding for projects listed in the CAP.

Staff is requesting the execution of this MOU in order to continue implementing these projects in a timely manner to meet the 2030 CAP goals, and to come back to Council in the summer of 2025 with the second annual implementation progress report.

The Council and members of the public may refer to the staff report and supplemental documents presented at the June 4, 2024 City Council meeting for more information regarding the implementation of this plan in its first year.

Other Sustainability Projects
In addition to the implementation of the CAP, the City’s Environmental Division works on other programs and projects that require additional staff capacity to execute. As such, this Sustainability Coordinator Fellowship position would also be supporting the following efforts: assisting in the implementation of required provisions in State Bill 1383, assisting in the conduction of outreach as required by the City’s National Pollutant Discharge and Elimination System (NPDES) Permit, continuing the ongoing outreach campaign to assess the feasibility of passing the County of San Mateo’s Model Foodware Ordinance, continuing to support fleet electrification efforts, identifying and applying for outside funding which may support the abovementioned programs and other programs in the CAP, and leading efforts to conduct additional bilingual outreach and other events to educate community members about the City’s sustainability goals.

Analysis
To partner with BACR to host a fellow, the City needed to prepare a job description alongside an application for submission by mid-April 2024. The application period closed in mid-April and 18 CONSENT ITEM 3.2
the City was selected to continue being a host site. BACR recruited candidates on the City’s behalf and staff conducted two rounds of interviews to select a candidate. At this time, a candidate has been selected and the offer has been accepted. This Fellow will begin their 11- month term in September 2024.

This Fellowship removes access barriers by only requiring a high school diploma/GED as an educational requirement, status as a US citizen or legal permanent resident, and residency in California.

Fellowship opportunities enable community members to engage in meaningful climate action work for a limited duration and receive a Segal Education Award up to $6,895 in return for their service, while receiving a monthly stipend of $2,727 and additional pay of $10,000 as an end of the program award.

A $28,000 match is required from the host agency to support implementation of the program.

Exposure to climate action planning and implementation will ensure the Fellow will be engaged in public outreach, education, research, and developing an understanding of the many co-benefits the community will enjoy through emissions reductions and other goals to be fully outlined through the EPA CAP 2030.

The Fellow will be exposed to public engagement efforts beyond the Climate Action Plan, including Coastal Cleanup Day, other community cleanup events, MLK Day Tree Planting, Earth Day, National Rivers Cleanup Day, and Bike to Work Day, among other public events. This exposure will also enable the Fellow to be exposed to nonprofit partnerships, other governmental agencies, and other regional Climate Action Plan collaboratives the City engages in.

By hiring this Fellow, the City will temporarily enhance climate action capacity while the Fellow and Public Works team seeks funding opportunities for further capacity building, while continuing to implement the CAP.

Fiscal Impact
A budget of $28,000, funded through the City’s General Fund, is included in the adopted FY 2024/2025 annual Public Works Budget.

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.
19 CONSENT ITEM 3.2
Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement within the meaning of the Levine Act.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Draft Memorandum of Understanding between Bay Area Community Resources and City of East Palo Alto.

2. Resolution.
20 Memorandum of Understanding (MOU) between
Bay Area Community Resources and City of East Palo Alto September 1, 2024 – August 31, 2025
SUBJECT: Sustainability Service Corps
This MEMORANDUM OF UNDERSTANDING is hereby made and entered into by and between Bay Area Community Resources, hereinafter referred to as “BACR” and City of East Palo Alto, hereinafter referred to as “Host Agency”. Collectively, BACR and Host Agency are hereinafter referred to as the “Parties.”
ARTICLE I – BACKGROUND AND OBJECTIVES
BACR has contracted with AmeriCorps (formerly Corporation for National and Community Service – CNCS) through California Volunteers to implement the Sustainability Service Corps program. BACR is collaborating with public and nonprofit organizations across the state of California to recruit, train, and place Sustainability Service Corps Fellows, hereinafter referred to as “Fellow(s)”, at public and nonprofit organizations, where they will support greenhouse gas reduction programs or other sustainability projects, such as implementing programs that save energy, water, or waste; educating students in classrooms or online; developing Greenhouse Gas Inventories, Climate Action Plans, and other capacity-building documents; and conducting outreach to raise community engagement. Fellows will ideally devote an average minimum of 24 hours per week to directly working on emissions, water, waste, or energy reduction projects.

The following recitals describe the purpose of this MOU:
● BACR and Host Agency agree to partner to implement projects with the support of Fellows.
● Fellows can only serve on contracted and allowable service activities outlined in the job description which is co-created by BACR and Host Agency. ● The nature of the program necessitates Host Agency participation in timely outcome reporting, supervision, and support for the Fellow(s).
● Host Agency desires to host Fellow(s), and BACR desires to provide Fellow service to Partner. This document is to establish the basic guidelines and expectations between the Host Agency and BACR.
21 ● The Host Agency and BACR enter into this MOU in order to memorialize the terms of BACR's performance of the services and the Partner's obligations with respect thereto.

The objectives of the program are as follows:
● Host Agency will be able to report measurable reductions in greenhouse gas (GHG) emissions, energy, water, or waste at the end of the Fellowship. ● Fellows may support the Host Agency through efforts in community outreach, capacity building climate resiliency projects, and K-12 youth education. ● Fellows will be able to develop a practical skill set and expertise in the realm of climate change management at the community level.
● Host Agency communities will be able to increase community participation towards further GHG reductions through volunteer opportunities that are created and/or increased through the participation of the Fellow.

The Parties will work together to promote the partnership and its benefits to the projects and community at large.

Per Federal Guidelines and BACR policies, the Sustainability Service Corps Program must follow equal opportunity employment requirements and be accessible to persons with disabilities by providing reasonable accommodation. In support of this:
● BACR and Host Agency will comply with Equal Opportunity Employment guidelines. ● BACR and Host Agency will endeavor to make reasonable accommodations to known physical or mental limitations of qualified Fellows with disabilities unless the accommodation would impose an undue hardship on the program operations. ● BACR and Host Agency will endeavor to accommodate the sincere religious beliefs of Fellows to the extent such accommodation does not pose an undue hardship on the Host Agency's operations.
● BACR and Host Agency will not allow any form of retaliation against individuals who raise issues of equal employment opportunity or reasonable accommodation.

ARTICLE II – FELLOWSHIP TERM
The Fellows’ term of service with the Host Agency is for a period of 11 months. The term of service starts as soon as September 1, 2024 but no later than October 2, 2024, and ends no later than August 31, 2025. While working for the Host Agency, the Fellow(s) will complete a minimum of 1,700 hours total. The Fellow(s) are expected to finish their term of service through their scheduled end date even if they reach their minimum hours target sooner. 22 It is expected that the Fellow(s) will devote 80-90% of their time (1,360-1,530 hours) to “Service” (projects agreed upon with the Host Agency and detailed in the Scope of Work, see Article III) and 10-20% of their time (170-340 hours) to “Training” (structured and independent professional development opportunities including mandatory Sustainability Service Corps trainings and events). No more than 20% of time will be spent on “Training”.

If a Fellow is unable to complete the expected number of hours by the end date in the Fellow’s contract (i.e. Member Service Agreement) due to any unforeseen circumstances during their term they may, at the discretion of BACR and the agency, be allowed time to complete their hours at the agency, or at another approved agency where there are service opportunities available. The last day Fellows are eligible to earn hours for the 2024-25 program year will be August 31, 2025.

ARTICLE III – BACR SCOPE OF SERVICES
BACR agrees to perform the following services:
● Be the official employer-of-record for the Fellow(s) which includes providing a living stipend of $2,838.917/month, as well as coverage options for healthcare, childcare, and student loan deferment.
● Recruit, screen, and select the Fellow(s). BACR will lead, and Host Agency will assist, in the recruitment and selection of the Fellow(s), including, without limitation, developing a position description, conducting interviews, and participating in the final selection of the Fellow(s). The Fellow(s) must be a permanent resident of California by the time mandatory background checks are conducted before the start of the Fellowship. ● Train Fellow(s) with a comprehensive training program. Fellows are expected to attend mandatory events and complete assignments in a timely manner. BACR will ensure that the training program does not exceed the agreed upon total number of “Training” hours as defined in Article II. The training program includes:
○ Resources
■ A training manual of AmeriCorps and Sustainability Service Corps program policies, best practices, and conduct expectations; ■ Access to professional networks and coaching.
○ In-Person Events
■ A four-day orientation before “Service” begins with the Host Agency; ■ A mid-year retreat;
■ An end-of-year graduation celebration.
○ Online Trainings
23 ■ Monthly, virtual, three-hour workshops facilitated by BACR with a focus on professional development and transferable skill-building. Host Agency will be provided with a full schedule prior to the start of the program; ■ Enrollment in the University of California’s Climate Stewards Certification program, a six-month course featuring six monthly classes (3-4 hours each), coursework, assigned readings, and field trips. ○ Independent Professional Development
■ Customizable, self-directed opportunities designed by the Fellow(s) and the Parties to support the Fellow(s) professional development and career pursuits;
■ Access to a professional development budget from BACR. ● Support Fellow(s) and Host Agency via required meetings and assignments, including:
○ A Regional Supervisor (a representative from BACR) assigned to the Host Agency whose main function is to support both the Host Agency and the Fellow during the term of service through monthly verbal check-in meetings, email support, professional development resources, and conflict resolution, if necessary; ○ Monthly, virtual supervision meetings attended by the Fellow(s), the Site Supervisor (a person assigned by the Host Agency to direct the Fellow(s) in their projects), and the Regional Supervisor;
○ Two Fellowship Performance Reviews including surveys completed by the Host Agency and Fellow and debrief conversations facilitated by the Regional Supervisor;
○ A specific Scope of Work plan developed by the Fellow with the Host Agency that aligns with the GHG reduction initiatives provided by the Host Agency within the first month of service;
○ Defined metrics for the Fellow to measure and track the progress of resource waste reduction, K-12 education, capacity building, or community outreach throughout the placement, developed collaboratively by the Parties. ● Define and implement any corrections to Fellow’s plan determined to be necessary based on feedback collected from Fellow and Host Agency.

BACR reserves the right to remove Fellow(s) from Host Agency should the placement become unsuitable or unsafe for Fellow(s), or Partners violate the terms of this MOU. BACR will make reasonable attempts to address and mitigate concerns with Partners as appropriate. 24 ARTICLE IV – HOST AGENCY REQUIREMENTS, RESPONSIBILITIES, AND

EXPECTATIONS
In order to provide a clear and well-defined service experience for participating Fellow(s), Host Agency agrees to:
● Provide at least one specific GHG reduction initiative that the Fellow(s) can work on during their term of service. Initiatives must be well-defined, approved for implementation and include specific emissions, water, waste, or energy reduction, and/or education, community outreach, or capacity-building targets, or have the capacity to define specific project targets. Host Agency will work with BACR to finalize a mutually agreed-upon Scope of Work no later than one month after the Fellow(s) begins work. ● Assign a Site Supervisor who will be available:
○ To devote at least one hour per week of direct one-on-one time with Fellow(s).

This time is different from time spent working together on projects; the one-on-one time should be structured with an agenda that helps the Fellow(s) organize their priorities, discuss any challenges, and explore professional development opportunities);
○ Direct the Fellow(s)’ projects on a daily basis and provide specific guidance and tasks as they complete their projects;
○ Complete monthly verbal reporting to BACR in Regional Supervisor check-in meetings, indicating whether progress is being made on the initiatives; ○ Provide feedback on the Fellow(s)’ performance: two times a year, fill out and submit an evaluation form to provide feedback on Fellow activities, performance, and offer data on specific resource or GHG reduction metrics; ○ Attend the Partner Orientation (August) and Mid-Year Call (via webinar).

Additional, optional host partner networking events will be made available; ○ Review and acknowledge BACR’s program policies and best practices for supervision.
● Allow the Fellow(s) to attend mandatory trainings and participate in program events as described above, even if they conflict with “Service” activities. Written permission must be requested by the Site Supervisor to the Regional Supervisor in advance of the event if the Fellow(s) must be absent.
● Allow BACR to share results from this program through grant reporting, social media, and other means as BACR deems appropriate.
● Create an inviting and safe workplace culture for the Fellow(s) that values their personal safety, mental health, and personal and professional development goals, regardless of their own beliefs, identities, and backgrounds.
● Follow BACR’s disciplinary procedure for the Fellow(s), if necessary, which includes verbal warnings (up to two issued by the Site Supervisor to the Fellow(s) and reported to 25 the Regional Supervisor), a written Performance Improvement Plan signed by all Parties (includes clear expectations and consequences for improvement within a minimum of two weeks), and a final review by BACR before terminating the Fellow(s). ● Ensure that Fellow(s) do not do the following while charging time to the AmeriCorps Program, accumulating service or training hours, or otherwise performing activities supported by the AmeriCorps Program:
○ Engage in any activity that is illegal under local, state or federal law; ○ Engage in activities that pose a significant safety risk to others; ○ Engage in any of the Prohibited Activities outlined in the Policies & Procedures handbook, including, but not limited to:
■ Attempting to influence legislation;
■ Organizing or engaging in protests, petitions, boycotts, or strikes; ■ Assisting, promoting, or deterring union organizing;
■ Impairing existing contracts for services or collective bargaining agreements;
■ Engaging in partisan political activities, or other activities designed to influence the outcome of an election to any public office; ■ Participating in, or endorsing, events or activities that are likely to include advocacy for or against political parties, political platforms, political candidates, proposed legislation, or elected officials; ■ Engaging in religious instruction, conducting worship services, providing instruction as part of a program that includes mandatory religious instruction or worship, constructing or operating facilities devoted to religious instruction or worship, maintaining facilities primarily or inherently devoted to religious instruction or worship, or engaging in any form of religious proselytization;
■ Providing a direct benefit to a business organized for profit; a labor union; a partisan political organization; or a nonprofit organization that fails to comply with the restrictions contained in section 501(c)(3) of the Internal Revenue Code of 1986 except that nothing in this section shall be construed to prevent participants from engaging advocacy activities undertaken at their own initiative; and
■ An organization engaged in the religious activities described in paragraph (g) of this section, unless AmeriCorps assistance is not used to support those religious activities;
■ Conducting a voter registration drive or using AmeriCorps-funded time to conduct a voter registration drive;
■ Providing abortion services or referrals for receipt of such services; and ■ Such other activities as the AmeriCorps may prohibit. 26 ○ AmeriCorps members may support fundraising and resource-gathering for direct support of your program's service activities, but with restrictions:
■ Examples of fundraising activities AmeriCorps members may perform include, but are not limited to, the following:
● Seeking donations of books from companies and individuals for a program in which volunteers teach children to read;
● Support research and writing of a grant proposal to a foundation to secure resources to support the training of volunteers; ● Securing supplies and equipment from the community to enable volunteers to help build houses for low-income individuals; ● Securing financial resources from the community to assist in launching or expanding a program that provides social services to the members of the community and is delivered, in whole or in part, through the members of a community-based organization; ● Seeking donations from alumni of the program for specific service projects being performed by current members.
■ AmeriCorps members may not:
● Raise funds for living allowances or for an organization's general (as opposed to project) operating expenses or endowment; ● Write a grant application to the Corporation or to any other Federal agency.
● Spend more than 10% of their term of service performing fundraising activities.
○ Individuals may exercise their rights as private citizens and may participate in the activities listed above on their initiative, on non-AmeriCorps time, and using non-AmeriCorps funds. However, the AmeriCorps logo must not be worn while doing so.
● Support and encourage the promotion of National Service through the following:
○ Posting AmeriCorps and National Service information at all service sites ○ Posting a list of the above Prohibited Activities at all service sites ○ Ensuring Fellows wear appropriate uniforms or AmeriCorps pin as required by BACR
○ Allowing Fellows to leave the program site to participate in pre-arranged National Service identity activities and monthly training days.
○ Allowing Fellows to spend up to a maximum of 20% of their total hours on thematic professional development activities (including regular monthly programmatic training days).
● [Desired, but not required] to provide program-wide support by either ○ Facilitating at least one all-day training event for all Fellows or, 27 ○ Speaking during a session at one all-day training event for all Fellows ARTICLE V – TERM OF AGREEMENT
This MOU will become effective on the date of final signature and shall continue in full force and effect through August 31, 2025.

ARTICLE VI – KEY OFFICIALS
The individuals listed below are identified as key personnel considered essential to the project being performed under this Memorandum of Understanding.

For BACR
Job Title: Director of National Service
Name: Adolfo Rivera
Address: 11175 San Pablo Ave, El Cerrito, CA 94530
Phone Contact: (510) 559-5550
Email Contact: [email protected]
For Host Agency:

Job Title Public Works Director
Name Humza Javed
Address 1960 Tate Street, East Palo Alto, CA 94303
Phone Number 650-853-3130
Email Contact [email protected]
No change in key officials will be made by either BACR or Host Agency without written notification thirty days in advance of the proposed change. The notification will include a justification in sufficient detail to permit evaluation of the impact of such a change on the scope of work.

ARTICLE VII – PAYMENT
Host Agency will provide BACR with $28,000 per Fellow, and requests one (1) Fellows for the coming program year for a total payment amount of $28,000 to support the implementation of the program. Host Agency will receive invoices one month prior to the scheduled payment date.

This payment will be made according to the following schedule:
● Payment 1:
o Due: November 30, 2024
28 o Amount: $14,000
● Payment 2:
o Due: January 31, 2025
o Amount: $7,000
● Payment 3:
o Due: March 31, 2025
o Amount: $7,000
ARTICLE VIII – TERMS
It is mutually agreed by all Parties to this MOU that:

MOU:
● The Parties will review the effectiveness of the MOU after each participating year and evaluate potential modifications that more adequately address the purpose of this MOU. ● In the event that a Party no longer approves implementation of any of the provisions referenced in this MOU, the individual Parties agree to promptly confer to determine what, if any, modifications to this MOU should be made to address the issue(s) of concern.
● In the event that a Party no longer desires to be a part of this MOU or any modification(s), then the individual Party in their sole discretion may terminate their relationship within this MOU. Written notice must be provided by the Party desiring to withdraw from the MOU at least thirty (30) days prior to termination.

Fellow Recruitment, Hiring, and Termination:
● If the Host Agency ultimately fails to select a Fellow from a list of applicants deemed qualified by BACR, Host Agency will pay BACR a $2,500 fee (included in the total cost) for the recruiting effort promptly following receipt of an invoice from BACR. ● The Parties will explore reasonable next steps for recruitment in the event that BACR is unable to place a qualified Fellow at the Host Agency by the final possible start date.

Next steps include a shorter term of service with corresponding lower payment amount (dependent on availability), postponement to future term of service, or whatever solution is deemed most beneficial to the Parties.
● In the event that the Fellow(s) is hired to begin after the start of the program, the full match will still be required. All full-time AmeriCorps Members receive the same benefits and are expected to finish the term of service regardless of their start date so the cost remains the same.
● Host Agency agrees to not hire the Fellow as a full-time employee until and unless the Fellow completes their entire term of service described in this MOU. If the Host Agency hires the Fellow before the end of the program year, Host Agency is subject to a $2,500 29 fine for the time and resources spent on recruiting, training, and supporting the Fellow. If there is extra space in the program, BACR agrees to recruit another Fellow to complete the term of service if Host Agency desires, in which case the Host Agency must still pay BACR for the services described in this MOU and according to the payment schedule outlined in Section VI (Payment). In the event a replacement Fellow is available, but the Host Agency does not desire a replacement Fellow, effectively ending the term of service, Host Agency is subject to a $2,500 fine for exiting the contract before the agreed upon end date and a $2,500 fine for the time and resources spent on recruiting and training the Fellow, amounting to a total fine of $5,000. The Host Agency will not be reimbursed for payments already made to BACR.
● In the event that the Fellow(s) leaves the program for any reason aside from being hired as a full-time employee of the Host Agency, prior to the end date in the Fellow’s contract (i.e. Member Service Agreement), a prorated amount will be issued for match funds up until April 30, 2025. Prorated amounts are determined by the following equation: Total partner match divided by number of total stipend payments planned for the Fellow(s) multiplied by actual number of stipend payments distributed. The match is used throughout the year for AmeriCorps Member stipends, benefits, training, and programmatic costs; all Agency match funds will have been absorbed by the program by the April 30, 2025 deadline so no prorated amount will be issued after that date.

Responsibility
● Each Party agrees that it will be responsible for its own acts and the results thereof and shall not be responsible for the acts of the other Party and the results thereof. Each Party, therefore, agrees that it will assume all risk and liability to itself, its agents or employees, for any injury to persons or property resulting in any manner from the conduct of its own operations, and the operation of its agents or employees under this MOU, for any loss, cost, damage, or expense resulting at any time from any and all causes due to any act or acts, negligence, or the failure to exercise proper precautions, of or by itself or its agents or its own employees, while occupying or visiting the premises under and pursuant to the MOU.
30 ARTICLE IX – AUTHORIZING SIGNATURES
IN WITNESS WHEREOF, the parties hereto have executed this MOU on the date(s) set forth below.

Bay Area Community Resources
___________________________________ ______________________ Adolfo Rivera Date
Director of National Service
City of East Palo Alto
___________________________________ ______________________ Melvin E. Gaines Date
City Manager
31 Resolution No. XX-2024 1 of 2
RESOLUTION NO. XX– 2024

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A MEMORANDUM OF

UNDERSTANDING WITH BAY AREA COMMUNITY RESOURCES, IN A FORM APPROVED BY THE CITY ATTORNEY, IN AN AMOUNT NOT-TO-EXCEED $28,000 IN MATCHING FUNDS TO

HIRE A SUSTAINABILITY SERVICE CORPS FELLOW TO CONTINUE IMPLEMENTATION OF THE EAST PALO ALTO CLIMATE ACTION PLAN 2030 AND SUPPORT OTHER

SUSTAINABILITY EFFORTS ON BEHALF OF THE CITY
WHEREAS, Bay Area Community Resources (BACR) collaborates with public and nonprofit organizations across the state of California to recruit, train, and place Climate Corp AmeriCorps Fellows at public and nonprofit organizations; and
WHEREAS, the City of East Palo Alto has applied for a Climate Corp AmeriCorps Fellow to support the work of implementing the Climate Action Plan and Adaptation Strategies 2030; and WHEREAS, the City of East Palo Alto is dedicated to supporting development of Climate Action professionals and seeks to benefit from staff augmentation through the fellowship program; and WHEREAS, BACR is committed to training and supporting the Fellow with a comprehensive training program, a variety of benefits and financial incentives and rewards; and WHEREAS, the City intends to support the Climate Corp AmeriCorp Fellow by providing supervision, direction, and meaningful inclusion in the development of an updated Climate Action Plan and Implementation Plan as well as other sustainability events.

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 are incorporated by this reference into this action;

2. Authorize the City Manager to negotiate and execute a Memorandum of Understanding with Bay Area Community Resources, in a form approved by the City Attorney, in an amount notto-exceed $28,000 in matching funds to hire a Sustainability Service Corps Fellow to continue implementation of the East Palo Alto Climate Action Plan 2030 and support other sustainability efforts on behalf of the City; and

3. Finds that 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.

PASSED AND ADOPTED this 25th day of July 2024, by the following vote:
32 Resolution No. XX-2024 2 of 2
AYES:

NOES:

ABSENT:

ABSTAIN:

Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
33 CONSENT ITEM 3.3

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Muwekma Ohlone Resolution
Recommendation
Present the Muwekma Ohlone Resolution.

Attachments

1. Resolution
34 Resolution No. XX-2023 1 of 2
RESOLUTION NO. XX– 2024

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

ACKNOWLEDGING THE MUWEKMA OHLONE TRIBE OF THE
SAN FRANCISCO BAY AREA’S FEDERAL RECOGNITION.

WHEREAS, the Muwekma Ohlone people, is the only Bureau of Indian Affairs’ documented and historic Ohlone Tribe from the San Francisco Bay Area, who have maintained their distinct culture, social and political identity for the past 230 years despite genocide and political erasure; and, WHEREAS, the Muwekma Ohlone have a presence in the San Francisco Bay Area since time immemorial; and,
WHEREAS, the direct ancestors of the Muwekma Ohlone Tribe were missionized into the three Bay Area Missions: Santa Clara, San Jose, and San Francisco during the expansion of the Spanish Empire into Alta California from 1769 to secularization in1836; and WHEREAS, the United States Government maintained a “trust” relationship with the Muwekma Ohlone Tribe, historically identified by agents and superintendents from the Bureau of Indian Affairs as the Verona Band, from 1906-1927; and,
WHEREAS, the Muwekma Ohlone Tribe has never been legally or illegally terminated by an act of Congress, but were bureaucratically politically removed from the list of landless tribes and bands identified and eligible for land/homesites purchase via the Congressional Appropriation Acts of 1906, 1908, and later years, without any due process in 1927 despite its “trust’ relationship and its previous status as a federally recognized tribe; and
WHEREAS, the Muwekma Ohlone Tribe enrolled (1928-32, 1948-57, and 1968-71) with and was approved by the Bureau of Indian Affairs, Secretary of Interior, and Federal Courts under the 1928 California Jurisdictional Act and later Acts, and have consistently organized themselves under the 1934 Indian Reorganization Act, and also attended Indian Boarding Schools in the 1930s and 40s, still must obtain reaffirmation by the Secretary of the Interior or U. S. Congress; and WHEREAS, there are over 614 BIA documented enrolled members of the Verona Band/Muwekma Ohlone Tribe in the San Francisco Bay Area; and WHEREAS, the Muwekma men and women have served overseas with honor in all branches of the United States Armed Forces in all major campaigns in WWI, WWII, Korea, Vietnam, Desert Storm, Iraq, and are still serving today; and
WHEREAS, justice and equal treatment under the law demands that the Department of the Interior and the federal government officially recognize the historical, social, military and political history of the Muwekma Ohlone Tribe through its efforts to regain federal recognition.

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

1. The United States Congress and the Department of the Interior and the Bureau of Indian Affairs acknowledge the Muwekma Ohlone Tribe of the San Francisco Bay Area as a federally 35 Resolution No. XX-2023 2 of 2
recognized, sovereign tribe as defined un 25 C.F.R. 1.2 (the Secretary retains the power to waive or make exceptions to his regulations as found in chapter I of title 25 CFR in all cases where permitted by law and the Secretary finds that such waiver or exception is in the best interest of the Indians).

2. City manager draft and execute a letter transmitting this resolution to Bay Area congressional delegation, the Secretary of the Department of the Interior, with instructions that all actions be taken to support and ensure the immediate recognition of Muwekma Ohlone Tribe’s federal status, and include them with the federal registry of recognized tribes under the Bureau of Indian Affairs.

PASSED AND ADOPTED this 25th day of July 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
36 CONSENT ITEM 3.4

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Renter’s Act Resolution
Recommendation
Present the Renter’s Act Resolution.

Attachments

1. Resolution
37 Resolution No. XX-2023 1 of 2
RESOLUTION NO. XX– 2024

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
SUPPORTING THE JUSTICE FOR RENTERS ACT.

WHEREAS, any official position of the City of East Palo Alto with respect to legislation, rules, regulations or policies proposed to or pending before a local, state or federal governmental body or agency must have first been adopted in the form of a Resolution by the City Council; and WHEREAS, like many other jurisdictions in California, East Palo Alto is in the midst of a severe housing affordability crisis; and
WHEREAS, the Costa-Hawkins Rental Housing Act signed into law by Governor Pete Wilson in 1995 places significant limits on the ability of cities in California to implement rent control for any single family home or condominium, including single family homes owned by corporations or institutional investors, and any apartment constructed after February 1995; and WHEREAS, the Costa-Hawkins Rental Housing Act prohibits cities that established rent control laws prior to the Act's passage in 1995 from expanding rent control; and WHEREAS, the Costa-Hawkins Rental Housing Act also prohibits cities from implementing "vacancy control," also called "strict" rent control, thus allowing an apartment owner the right to rent any vacant unit at any price, usually the market price, following a tenant vacating the unit; WHEREAS, the Costa-Hawkins Rental Housing Act impedes permanent changes to local rent control ordinances and enables rents on currently affordable rental housing units to rise to market rates upon vacancy thus imperiling the existing affordable housing stock, imperiling tenants, and contributing to a worsening of our homelessness crisis; and WHEREAS, the Justice for Renters Act will appear on the ballot on November 5, 2024; and WHEREAS, the Justice for Renters Act would repeal the Costa-Hawkins Rental Housing Act of 1995 and state that the State of California may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control;
WHEREAS, under the Justice for Renters Act authority over local rent control laws would be returned to cities and counties which choose to adopt such local rent control laws; and WHEREAS, this City and many California cities face an affordable housing crisis that demands both near term and long-term solution; and
WHEREAS, the Justice for Renters Act would ensure cities full authority to protect affordable rental housing over both the near-term and the long-term

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY: supports the Justice for Renters Act.

PASSED AND ADOPTED this 25th day of July 2024, by the following vote:
38 Resolution No. XX-2023 2 of 2
AYES:

NOES:

ABSENT:

ABSTAIN:

Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
39 CONSENT ITEM 3.5

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Karen Camacho, Housing & Economic Development Manager Yajaira Morales, Housing Project Manager
SUBJECT: Amendment to Agreement with EPACANDO for CalHome ADU/JADU Loan Program Administration
Recommendation
Adopt a resolution:

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

Priority: Promote Housing, Economic and Workforce Development 40 CONSENT ITEM 3.5
Background
CalHome ADU/JADU Loan Program
The City was awarded a $2 million CalHome award from the Department of Housing and Community Development (“HCD”) in 2020. CalHome is a revolving loan program for eligible lowincome homeowners at or below 80% of the Area Median Income (“AMI”) to build or substantially repair accessory dwelling units or junior accessory dwelling units (“ADUs” or “JADUs”). The program was set to end on June 7, 2024, and HCD requested that the City close its interest list by February 2024 to complete its existing pipeline of potential loans by the end of the program.

In May 2024, due to a pending building permit for a third and final approved loan, HCD provided the City with an extension until June 7, 2025 to close on the loan, and finish all construction and program completion requirements for the three HCD-approved CalHome projects (see Exhibit B, “Standard Agreement”). Each project will receive up to $100,000 to help cover costs in different stages of the project per the CalHome loan program guidelines, last updated via City Manager authority and approved by HCD in accordance to the Standard Agreement in June 2023 (see Attachment 4, “CalHome Guidelines”).

Agreement with Administrative Subcontractor: EPACANDO
Upon initial setup of the CalHome ADU/JADU Loan Program, HCD required that the City establish an agreement with its administrative subcontractor: East Palo Alto Community Alliance Neighborhood Development Organization (EPACANDO).
1 On October 19, 2021, via Resolution
No. 141-2021, the City Council authorized the City Manager to execute an agreement with EPACANDO to act as the City’s Administrative Subcontractor for the duration of the CalHome grant period.

Staff worked with the City Attorney’s Office to draft the original agreement between EPACANDO and the City (see Exhibit A, “City and EPACANDO Agreement”). The term of the City and EPACANDO Agreement was the same as the original Standard Agreement, which expired on June 7, 2024. Please note that the total not-to-exceed amount in Exhibit B reflects the amount of funds that the City and EPACANDO anticipate will be reimbursed by HCD for administrative costs (“Activity Delivery Fees”) and passed through to EPACANDO; no City funds are included.

Future Monitoring Requirements
The City had signed a 20-Year Monitoring Agreement with HCD (“Monitoring Agreement”), reinstating the CalHome Program requirements found in the Standard Agreement. This Monitoring Agreement ensures that the City is following all of the documentation requirements and retaining records beyond the Standard Agreement expiration date of June 7, 2025. These requirements remain in place due to the nature of the CalHome program, which allows for reuse of CalHome funds received by the City, i.e., loan repayments, for future CalHome 1 Administrative Subcontractor” is an HCD term defined in the CalHome Program Guidelines dated November 27, 2019, Section 7716(c) as “any entity or individual which contracts with the CalHome program Recipient to provide any portion of administrative services to the local CalHome program activity.” 41 CONSENT ITEM 3.5
ADU/JADU Loans or other CalHome grant programs that the City may apply for in the future.

City Council Approval of Agreement Amendment
The purpose of this staff report is to obtain City Council authorization via resolution to extend the existing contract with the City’s Administrative Subcontractor, EPACANDO, to reflect the HCD granted extension of the CalHome program to June 7, 2025.

Analysis
CalHome ADU/JADU Loan Program Roles and Responsibilities As the CalHome recipient jurisdiction, the City is responsible for drawing CalHome funds from HCD and acting as the lender to each qualified household. EPACANDO performs all administrative functions on behalf of the City with City approval. EPACANDO also works with Meriwest Credit Union for underwriting and origination of the CalHome ADU/JADU Loans.

Table 1 below illustrates the role of the City, EPACANDO, and Meriwest on the CalHome program.

Table 1: CalHome Program Roles and Responsibilities
Step Description
Responsible
Party

EPACANDO
Assessment
EPACANDO reviews plans, cost estimates,
financing options with applicant. EPACANDO
First Position
Financing
Homeowner/applicant prepares evidence of
credit/cash commitments for 1st position
financing. Applicant
Notification to City
EPACANDO notifies City staff of applicant in
pipeline. EPACANDO
ADU/JADU Designer
Selection
EPACANDO works with applicant to develop
scope of work for designer.

EPACANDO/
Homeowner
Plan Submittal to City Plan set submitted to City for approval.

EPACANDO/
Homeowner
Permit Approval Permit is approved by City. City
Contractor Selection
EPACANDO assists applicant to develop
scope of work and select contractor (City
must approve contract).

EPACANDO/
Homeowner
CalHome
Prequalification
EPACANDO completes application review
and prequalification of applicant. EPACANDO
Loan Application
EPACANDO assists applicant with loan
application preparation for submittal to
Meriwest and City. EPACANDO
42 CONSENT ITEM 3.5
Step Description
Responsible
Party
City Approval
City approves applicant for loan amount and
prepares for disbursement. City
Underwriting
Loan application is submitted to Meriwest for
underwriting.

EPACANDO/
Homeowner
Loan Documents
City and applicant execute CalHome loan
documents.

EPACANDO/
City/Homeowner
CalHome
Disbursement
City places CalHome loan amount into
Meriwest account. City
CalHome Draw
Requests
EPACANDO monitors progress and issues
draw requests for City approval based on
prescribed construction milestones.

Payments issued in up to 5 phases.

EPACANDO/
City/Homeowner
EPACANDO Invoice
When final milestone is met, EPACANDO
invoices City for activity delivery fee. EPACANDO/City
City Draw Request to
HCD
After completion of 3 or more CalHome
loans, City submits draw request to HCD for
reimbursement of total amount, plus activity
delivery fee. City
CalHome ADU/JADU Loan Program Status Update
EPACANDO and the City launched the CalHome ADU/JADU Loan program in January 2022.

Information is available on the City’s webpage2 and EPACANDO’s webpage,3 including two recorded webinars and the CalHome application. In addition, City staff and EPACANDO hold weekly meetings to coordinate program administration.

With up to 20% of the total CalHome grant amount of $2 million set aside for administration (“Activity Delivery Fee”), it was originally anticipated that the first round of CalHome Loans would serve a minimum of 20 households with loans of up to $80,000. However, several unforeseen barriers limited the number of loans the City was able to issue, including but not limited to:
 The COVID-19 pandemic during the initiation of the program in 2021;  Systemic barriers for communities of color to obtain financing, remnants of lending discrimination, predatory lending, redlining, and limited resources;  Homeowners’ difficulties in obtaining conventional financing to cover costs beyond what the City’s loan program could support. For example, ADU and JADU development costs increased by 156% between 2020 and 2022 (the cost for a standard 1-bed, 1-bath, 500 sq ft detached ADU went from $180,000 in 2020 to $280,000 in 2022);  The City’s debt-to-income ratio requirement limited the eligible applicant pool; and  Level of responsiveness between the homeowners and architects/designers during the 2 Link to City’s CalHome webpage: https://www.cityofepa.org/housing/page/calhome-loans-adusjadus 3 Link to EPACANDO’s CalHome webpage: https://epacando.org/calhome/ 43 CONSENT ITEM 3.5
Building permitting process.

In June 2023, City staff updated its CalHome Guidelines under the City Manager’s authority and HCD approval. After increasing the loan amount from up to $80,000 to $100,000, and eliminating the debt-to-income ratio, the City was able to increase the number of eligible applicants from zero to three eligible applicants.

CalHome Loans #1 and #2
In October 2023, the City closed on its first $100,000 CalHome Loan, and in February 2024, it closed on its second $100,000 CalHome Loan. So far, both borrowers have received 50% of the loan funds for completion of three eligible milestones in the CalHome Guidelines’ payment schedule, as show in Table 2 below.

Table 2: CalHome Loan #1 and #2 Status Update
Draw
No.

Description of Work | Eligible Milestones Amount Status 1 Building Permit Issued $25,000 Complete
2 Foundation Approval or Equivalent of Rehab $12,500 Complete 3 System Upgrade Signed off or Plumbing Inspection
Passed
$12,500 Complete
4 Drywall Inspection Signed Off, or Equivalent of Rehab $40,000 Not Yet Completed 5 Final Inspection Passed $10,000 Not Yet Completed
Total Disbursement per Borrower as of July 2024 $50,000 Construction for both CalHome ADU projects is anticipated to be completed before June 2025.

These units will be deed-restricted at 60% of the Area Median Income (AMI) and added to the City's Below Market Rate (BMR) Program.

Potential CalHome Loan #3
A third homeowner applicant is currently undergoing Building review and anticipates receiving a building permit in July 2024, checking off the final eligibility requirement for the CalHome loan.

City staff and EPACANDO anticipate closing on the third CalHome loan as soon as August 2024, depending on HCD approval. Construction for this final CalHome ADU project would also need to be completed before June 2025.

Interest List Closed
HCD directed City staff to stop accepting applications to the CalHome ADU/JADU Loan Program before the June 2024 contract end date, as any new borrowers would need to meet a shorter construction deadline. The City and EPACANDO therefore closed the interest list for the CalHome ADU/JADU Loan Program on February 16, 2024, after a final push in outreach via citywide EPACANDO mailers, City newsletters, and a webinar. In May 2024, HCD approved a program extension to June 7, 2025 with the caveat that the City would not add any new prospective applicants to the closed interest list.
44 CONSENT ITEM 3.5
Next Steps
If approved, City staff will initiate a first amendment to its agreement with EPACANDO to extend the term to June 7, 2025.

Fiscal Impact
There is no fiscal impact for this item. Any program costs will be reimbursed by HCD for administrative costs (“Activity Delivery Fees”) and passed through to EPACANDO. The $2 million CalHome award from HCD is on a reimbursement basis, so any remaining unspent funds will not be dispersed to the City.

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.

Government Code § 84308
Applicability of Levine Act: Yes.

Analysis of Levine Act Compliance: The signatories(y) for the agreement, include Duane Bay, Executive Director of EPACANDO. Staff is unaware of any other parties or participants relevant to the Council’s consideration of this item other than John Latu, Permit Technician, City of East Palo Alto, as a potential grant recipient of the CalHome loan funding.

Attachments

1. Resolution

2. Exhibit A: City and EPACANDO Agreement

3. Exhibit B: Standard Agreement

4. CalHome Guidelines
45 Resolution No. XX-2024 1 of 4
RESOLUTION NO. XX– 2024

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A

FIRST AMENDMENT TO THE LICENSE AND GRANT AGREEMENT WITH EPACANDO TO

ACT AS ADMINISTRATIVE SUBCONTRACTOR OF THE CALHOME ADU/JADU LOAN

PROGRAM TO EXTEND THE TERM FOR THE DURATION OF THE CALHOME GRANT PERIOD THROUGH JUNE 7, 2025
WHEREAS, on December 15, 2020, via Resolution No. 155-2020, the City Council of the City of East Palo Alto (“City”) authorized the City Manager to submit an application to the Department of Housing and Community Development (“the Department”) to participate in the CalHome Program, and to execute in the name of the City the Standard Agreement, and any subsequent amendments or modifications thereto, as well as any other documents required by the Department for participation in the CalHome Program, and any amendments thereto, in a form approved by the City Attorney; and WHEREAS, the City and EPACANDO jointly submitted an application for a CalHome Grant in the amount of $2,000,000 (“CalHome Grant”) for the purpose of providing loans to low-income owneroccupants for new construction, repair, reconstruction, or rehabilitation of accessory dwelling units/junior accessory dwelling units (“ADUs/JADUs”); and WHEREAS, on July 20, 2020, the Department notified the City that its application for the CalHome Grant was successful and the Standard Agreement was subsequently executed on June 8, 2021;
WHEREAS, prior to implementing a CalHome program, the Department required CalHome recipient jurisdictions to provide CalHome program documents for the Department’s approval, including, but not limited to, CalHome Program Guidelines, a Loan Servicing Plan, and a Reuse Account Plan (collectively, “CalHome Program Guidelines”); and WHEREAS, prior to implementing a CalHome program, the Department additionally required CalHome recipients to submit an agreement with any organization performing administrative functions on behalf of the jurisdiction as part of its CalHome program, identified by the Department as an Administrative Subcontractor; and
WHEREAS, the City developed a CalHome ADU/JADU Loan Program in collaboration with EPACANDO, which acted as the City’s Administrative Subcontractor for the CalHome program; and WHEREAS, the City’s agreement with the Administrative Subcontractor, EPACANDO, enclosed herein as Exhibit A, expired on June 8, 2024; and
WHEREAS, the Department executed an amended Standard Agreement with the City, enclosed herein as Exhibit B, extending the term of the agreement to June 7, 2025; WHEREAS, the City’s agreement with the Administrative Subcontractor is coterminous with the Department’s Standard Agreement and therefore requires an amendment to extend the term of administration of the City’s CalHome ADU/JADU Loan Program through June 7, 2025. 46 Resolution No. XX-2024 2 of 4

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 a First Amendment to the License and Grant Agreement (“First Amendment”) with EPACANDO, in form approved by the City Attorney, to act as Administrative Subcontractor, to extend the term for the duration of the CalHome Grant period through June 7, 2025; and

2. Find that 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.

PASSED AND ADOPTED this 25th day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
47 Resolution No. XX-2024 3 of 4
Exhibit A
City and EPACANDO Agreement
[see attachment]
48 Resolution No. XX-2024 4 of 4
Exhibit B
Standard Agreement
[see attachment]
49 50
51 52
53 54
55 56
57 58
59 60
61 62
63 64
65 66
67 68
69 70
71 72
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Exempt per; SCM Vol. 1 4.04.A.3 (DGS memo dated 06/12/1981) Crystal Alvarez
05/9/2024
74 May 8, 2024
John D. Lê
May 8, 2024
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EXHIBIT A
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020

AUTHORITY, PURPOSE AND SCOPE OF WORK

1. Authority and Purpose
This Standard Agreement (hereinafter "Agreement") will provide official notification of a Grant award under the General CalHome Program (“Program or CalHome”) administered by the State Department of Housing and Community Development (“Department”) as authorized by and pursuant to Chapter 6 of Part 2 of Division 31 of the Health and Safety Code, commencing with Section 50650 (the “CalHome Statutes”) and Guidelines found in Title 25 of the California Code of Regulation, Division 1, Chapter 7, Subchapter 9 commencing with Section 7715 (“CalHome Guidelines”), all as amended and in effect from time to time.

A. In accepting this Grant award, the Recipient agrees to comply with the following:
1) CalHome Statutes;
2) CalHome Program Guidelines dated November 27, 2019;
3) Terms and conditions of the CalHome General Program Notice of Funding Amended (“NOFA”) dated February 5, 2020, which is incorporated herein by reference;
4) Representations contained in the Recipient’s application made in response to the NOFA ("Application"); and,
5) Terms and conditions of this Agreement.

In accepting this conditional reservation of funds, Recipient agrees to operate CalHome consistent with its purposes, as manifest in the CalHome Statutes, Guidelines and this Agreement (the “Purposes”), which include but are not limited to:

B. Securing an adequate supply of safe and affordable housing; C. Contributing to neighborhood stability and economic vitality by encouraging owner-occupation of housing;
D. Assisting homeowners in making necessary repairs to their homes or in finding suitable tenants;
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EXHIBIT A
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020
E. Supporting existing homeownership programs aimed at low and very low-income households, thereby increasing homeownership, encouraging neighborhood revitalization and sustainable development, and maximizing use of existing homes;
F. In the case of a disaster, as defined in Government Code Section 8680.3, assisting households at or below moderate income with repairs and replacing existing housing impacted by the disaster; and,
G. Ensuring a reasonable geographic distribution of funds.

2. Definitions
A. Any terms in this Agreement which are not otherwise defined shall have the meaning set forth in the Guidelines.

B. “Recipient” refers to the entity or entities submitting an application or to a related entity approved by the Department entering into this Agreement and identified as “Contractor” on page 1 to this Agreement (STD 213). In the case of applicants who are relying on administrative subrecipients to meet Program experience requirements, “Recipient” shall also refer to the Administrative subrecipient, as that term is used in the CalHome Guidelines, as may be amended from time to time, of the applicant. Recipient and subrecipient shall be jointly and severally liable for all obligations of a Recipient as set forth herein. Any reference to a specific “Section” or “section” of the Guidelines shall initially refer to that specific numbered section of the Guidelines adopted on and dated November 27, 2019.

Notwithstanding, if and when the Department amends any portion of the Guidelines, all references herein to any such portion of the Guidelines shall be deemed to refer to the updated version of the Guidelines, either in whole or in part, as may be applicable. To the extent that any Guidelines section or sections (Section or Sections) provision is or are amended, and thereafter receive(s) a new Guidelines section number(s), any reference herein to the old Guidelines section(s) number(s) shall be interpreted to refer instead to the Guidelines section(s) that is (or are) intended to replace the content and substance of the former Guidelines section(s).
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EXHIBIT A
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020

3. Scope of Work
The Scope of Work (“Work”) for this Agreement shall consist of one or more of the following categories, by or on behalf of the Recipient, within the Program Project Area as detailed in this Exhibit A:

Included
(“x”)
Grant/Loan Award Categories
-- First Time Homebuyer Mortgage Assistance (MA)
-- Owner-Occupied Rehabilitation Assistance (OOR)
-- Technical Assistance for Self-Help Housing Projects (SHTA) -- Technical Assistance for Shared Housing Programs (SHP) X Accessory Dwelling Unit (ADU) or Junior Accessory Dwelling Unit (JADU) Assistance (ADU/JADU)
-- Homeownership Project Development Loan (PDL)
Recipient shall perform the Work as described in the Application, which is on file at the Department of Housing and Community Development, Division of Financial Assistance, 2020 West El Camino Avenue, Room 650, Sacramento, California 95833 and which is incorporated herein by reference. All written materials or alterations submitted as addenda to the original Application and which are approved in writing by the CalHome Program Manager or higher Departmental official, as appropriate, are hereby incorporated as part of the Application. In the event of a conflict between the description of the Work in the Application and as described in this Exhibit, the description in this Exhibit shall prevail. The Department reserves the right to require the Recipient to modify any or all parts of the Application in order to comply with the CalHome Statutes or Guidelines. The Department reserves the right to review and approve all Work to be performed by the Recipient in relation to this Agreement. Any proposed amendment to the Work must be submitted in writing for review and approval by the Department. Any approval shall not be presumed unless such approval is made by the Department in writing.

A. Mortgage Assistance: The Work for this Agreement for First Time Homebuyer Mortgage Assistance (MA) shall consist of providing Mortgage Assistance loans to households at or below 80 percent of Area Median Income (in compliance with Health and Safety Code, Section 50052.5, subdivision (b)), or at or below 120 percent of Area Median Income for Households who were victims of a disaster (in compliance with Health and Safety Code, Section 50650.3 subdivision (a)).

CalHome funds, for the purpose of this activity, can only be used as gap financing (Guidelines Section 7725, subdivision (a) (1)). 78 City of East Palo Alto
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EXHIBIT A
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020
B. Owner–Occupied Rehabilitation: The Work for this Agreement for OwnerOccupied Rehabilitation Assistance (including the repair, full reconstruction, or the addition of an ADU or JADU) (Commencing with Guidelines Section 7732) for Loans to Households at or below 80 percent of Area Median Income (in compliance with Health and Safety Code, Section 50052.5, subdivision (b)), or at or below 120 percent of Area Median Income for Households who were victims of disaster (in compliance with Health and Safety Code, Section 50650.3, subdivision(a)). Manufactured Housing is also eligible, including replacement of a manufactured home, whether located in Mobilehome Park or elsewhere (Guidelines Section 7716, subdivision (s) (3) and Guidelines Section 7733, subdivision (e)).

C. Technical Assistance for Self-Help Housing Projects: The Work for this Agreement for Technical Assistance for Self-Help Housing Projects, the Recipient shall develop and employ Self-Help Technical Assistance Program Guidelines submitted to and approved by the Department addressing the following topics:
1) Program Marketing;
2) Recruitment of homebuyers and selection criteria;
3) Income limits for participation and income determination procedures; 4) Criteria for homebuyer participation in the program including:
a) residency requirements;
b) credit requirements; and,
c) the process for determining participant’s physical capability to assist in the construction of their home.
5) List of activities to be performed by self-help participants; 6) Construction training plan; and,
7) Homeownership training plan.
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EXHIBIT A
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020
D. Technical Assistance for Shared Housing Programs: The Work for this Agreement for Technical Assistance for Shared Housing Programs the Recipient shall develop and employ a Technical Assistance for Shared Housing Programs that include the minimum features:
1) Information regarding services available, procedures and program requirements, which shall be provided to all individuals requesting assistance;
2) Outreach and marketing activities shall be conducted to reach both potential Homeowner Providers and potential Seekers and provide information about the availability, purpose and requirements of shared housing match services;
3) Program evaluations shall be obtained from clients (Homeowner Providers and Seekers) by the Shared Housing Technical Services provider to be used as a basis for assessment and improvement of services provided to clients;
4) All services required to affect a Shared Housing Match between a LowIncome qualified Homeowner Provider and a Seeker which must include at minimum, intake forms/applications, face-to-face interviews between Homeowner Providers/Seekers and Shared Housing agency staff, reference checks, and income determinations to determine Homeowner Provider eligibility;
5) Documentation of a minimum ten percent reduction in housing costs (or increased income) for Homeowner Providers, except in instances where a Homeowner Provider is age 60 or over or disabled and the Seeker (renter) will be providing services to the Homeowner Provider. In cases that do not meet this requirement, the Recipient shall provide written justification; and 6) Match follow-up services to determine Match satisfaction and to help clients maintain a successful Shared Housing Match.

E. ADU/JADU Programs: The Work for this agreement for ADU/JADU Programs (commencing with CalHome Program Guidelines § 7742) for gap loans for ADU/JADU construction, reconstruction, repair, or rehabilitation to households at or below 80 percent of Area Median Income (in compliance with HSC § 50052.5(b)).
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EXHIBIT A
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020
F. Homeownership Project Development Loans: The Work for this agreement for Homeownership Project Development Loans (commencing with CalHome Program Guidelines § 7746) for conditional awards of development loans to the Recipient to be used for land acquisition, predevelopment costs and on-site improvements, including costs related to ADUs and JADUs (unit construction is not an eligible expense).

4. Amount of Agreement
The amount of this Agreement for the Work described herein shall not exceed $2,000,000.

5. Activity Delivery Fees
Mortgage Assistance Loans: HCD may provide funding to cover Activity Delivery Fees (ADFs) of up to 10 percent of the total award. Up to 5 percent of the total award may be provided within 90 days after the execution of the Standard Agreement for program development expenses, and up to 5 percent of the total award may be reimbursed on a per-Loan basis. The per-Loan reimbursement maximum will be 5 percent of the total award divided by the estimated number of Loans to be made under the contract.

Owner-Occupied Rehabilitation Loans: HCD may provide funding to cover ADFs of up to 20 percent of the total award. Up to 10 percent of the total award may be provided within 90 days after the execution of the Standard Agreement for program development expenses, and up to 10 percent of the total award may be reimbursed on a per-Loan basis. The per-Loan reimbursement maximum will be 10 percent of the total award divided by the estimated number of Loans to be made under the contract.

ADU/JADU Loans: HCD may provide funding to cover ADFs of up to 20 percent of the total award. Up to 10 percent of the total award may be provided within 90 days after the execution of the Standard Agreement for program development expenses, and up to 10 percent of the total award may be reimbursed on a per-Loan basis. The per-Loan reimbursement maximum will be 10 percent of the total award divided by the estimated number of Loans to be made under the contract.

Applicants need to provide documentation verifying their Activity Delivery expenses.

This requirement may be satisfied through documents such as invoices, receipts, time tracking, or other documentation of valid program expenses. 81 City of East Palo Alto
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EXHIBIT A
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020

6. Completion Dates
A. This Agreement shall expire June 7, 2025. All funds remaining unexpended upon termination shall be disencumbered from this Agreement.

B. Homeownership Project Development Loan:
1) Recipient shall draw down funds, or begin onsite construction, within 22 months from the date of execution of this Agreement. If Recipient fails to draw down loan funds or begin onsite construction by this date, the Department shall disencumber all loan funds under this Agreement, and such failure shall constitute a breach of this Agreement and cause for termination pursuant to Exhibit D, Paragraph 4, of this Agreement. 2) Recipient shall complete all unit construction and close all CalHome Mortgage Assistance loans with a rollover of development loan funds and/or final draws by June 7, 2025.
3) Any loan funds not used to provide CalHome Mortgage Assistance to qualified first-time homebuyers shall be repaid to the Department according to the terms of the CalHome Development Loan Agreement and CalHome Promissory Note.

7. Department Contract Coordinator
The coordinator of this Agreement for the Department is the CalHome Program Manager, or their designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be mailed by first class mail to the following address:

Department of Housing and Community Development
Division of Financial Assistance
CalHome Program Manager
2020 West El Camino Avenue, Suite 650
Sacramento, California 95833
Phone: (916) 263-2725
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EXHIBIT B
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020

BUDGET DETAIL AND PAYMENT PROVISIONS

1. Budget Detail
A. Recipient has been awarded the following grant or loan activity amounts:

ACTIVITY AMOUNT
Accessory Dwelling Unit (ADU) or Junior Accessory Dwelling Unit (JADU) Assistance (ADU/JADU) $2,000,000
GRANT TOTAL: $2,000,000
B. For the purposes of performing the Program Activities, the Department agrees to provide the aggregate amount identified on page 1, number 3 of this Agreement (STD 213) in the form of a grant (“Grant”) for the uses identified in the Sources and Uses. In no instance shall the Department be liable for any costs for the Work exceeding the Grant amount, or for any unauthorized or ineligible costs.

2. Security Documents for Homeownership Project Development Prior to the disbursement of any development loan funds, the following documents shall be provided to the Department and be entered into, executed and, where appropriate, acknowledged and recorded.

A. The CalHome Loan to the Recipient (“CalHome Loan”) shall be evidence by a Promissory Note (“CalHome Note”), executed by the Recipient, and payable to the Department.

B. Repayment of the CalHome Note shall be secured by a Deed of Trust executed by the fee owner(s) of all lots upon which the development project will take place for the benefit of the Department (“CalHome Deed of Trust”). Said CalHome Deed of Trust shall be recorded in the office of the County Recorder for the County in which the lot(s) is/are located and shall have priority over other liens, encumbrances and other matters of record except as may be approved the Department.

C. The Recipient and the Department shall execute a Development Loan Agreement (“CalHome Development Loan Agreement”) which shall:
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EXHIBIT B
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020
1) Set forth the terms and conditions for closing and disbursing the CalHome Loan funds including, but not limited to, requirements for title insurance for the CalHome Deed of Trust, and Recipient’s responsibilities and obligations with respect to hazardous substance detection, disclosure and remediation in the CalHome Development Loan Agreement;
2) Describe the process, terms and conditions under which the Department will convert some or all of the CalHome Loan into a grant in exchange for Recipient’s making of CalHome Mortgage Assistance loans to individual homebuyers; and,
3) Describe the method for establishing the amount of each homebuyer’s loan.

3. Conditions of Disbursement
A. Funds are not obligated to a Borrower prior to the date this Agreement is fully executed between the Recipient and the Department. Funds will be released after the Agreement execution, and after the Department has reviewed and approved the following Recipient submissions, if applicable:
1) Loan servicing plan in compliance with Guidelines Section 7723. 2) The Recipient shall submit its proposed program guidelines to the Department for its review and approval. Recipient shall include program guidelines for each activity identified in the budget detail above (Section 1 of this Exhibit) being funded. The guidelines, at a minimum, shall include:
a) participant eligibility requirements;
b) property eligibility requirements;
c) underwriting requirements including maximum Loan-to-Value limits and debt to income ratio’s;
d) loan terms for assistance loans to participants;
e) occupancy requirements;
f) costs eligible and ineligible for payment with CalHome funds; g) if mortgage assistance activity, Homebuyer education requirements; and,
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EXHIBIT B
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020
h) program marketing plan.
3) Loan document templates.
4) Reuse Agreement acceptable to the Department and executed by the Recipient, in compliance with Guidelines Section 7724, including verification of established separately maintained Reuse Account. 5) Fully executed 20-year Monitoring Agreement between the Recipient and the Department.
6) If a Recipient contracts with a third party for the administration of any of the above functions, the Recipient shall submit copies of the proposed contract prior to execution (including future amendments) to be reviewed and accepted by the Department.

4. Payment Provisions
A. Funds may be requested as either a reimbursement or as an advance pursuant to Guidelines Section 7757 and as described on page 14 of the NOFA under which these funds were awarded. All funds requests whether advance or reimbursement must be requested on a form provide by the Department and accompanied by the required supporting documentation. Advances may include, but are not limited to, any of the following:
1) Homeownership Project Development Loan disbursements; 2) Advances of up to 25 percent of the award for either Self-Help or Shared Housing Technical Assistance, Advances for Owner-Occupied Rehabilitation or ADU/JADU Programs up to the Recipient’s anticipated volume of closed Loans for the following 60-day period; and, 3) Advances to escrow for Mortgage Assistance Loans.

B. All Recipients shall reconcile advances within 90 days. Documentation showing at least two-thirds of the funds previously released for program activities were expended shall be submitted to the Department before another advance request will be processed.

C. Recipients shall also consistently complete quarterly performance reports and be up to date on their submissions before another advance request will be processed.
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EXHIBIT B
CalHome General Program
NOFA Date: 11/27/2019
Approval Date: 06/26/2020
Prep. Date: 09/24/2020
D. The Department shall not authorize payments unless it determines, in its sole discretion, that the Program funds shall be expended and disbursed in compliance with the terms and provisions of this Agreement, the CalHome Statutes and Guidelines, the NOFA, and, if applicable, a Disbursement Agreement.

E. The Department reserves the right to request copies of any documentation at any time prior to, or after the processing of any draw request.

5. Term of Agreement and Deadlines
A. The Recipient shall draw down CalHome program funds or begin onsite construction within 22 months of the award of funds by the Department. If this goal is not met the Department may disencumber all funds and cancel the Department commitment to the project.

B. Unit construction must be completed, and CalHome program Mortgage Assistance Loans closed by June 7, 2025.

C. For Self-Help Technical Assistance Grants:
1) The Recipient shall begin onsite construction within 12 months of the award of funds by the Department. If this goal is not met the Department may disencumber all funds and cancel the Department commitment to the project; and,
2) Unit construction shall be completed within 36 months of the award of funds by the Department. If this goal is not met, then:
a) The Department may, in its sole discretion, disencumber remaining unused funds; and,
b) The Department may, in its sole discretion, grant an extension of time, provided, however, that any extensions are in all events subject to any and all applicable encumbrances, deadlines, and limitations, including but not limited to Health and Safety Code, Section 54006, subdivision (g). Such an extension shall only be granted upon a showing of reasonable necessity, which was the result of circumstances outside the control of the Recipient. 86 1
City of East Palo Alto CalHome ADU/JADU Loan Program Guidelines I. INTRODUCTION
The CalHome ADU/JADU Loan Program is a program of the Department of Housing and Community Development (HCD) administered by the City of East Palo Alto and EPACANDO that provides gap funding to Lower Income homeowners in the form of a low-interest, deferred-payment loan to build an Accessory Dwelling Unit (ADU) or Junior Accessory Dwelling Unit (JADU) on their property.

The objective of the CalHome ADU/JADU Loan Program is to enable homeowners to develop ADU(s) and to expand housing opportunities for low-income households in the City of East Palo Alto.

Under the CalHome ADU/JADU Loan Program, the City provides participating homeowners with technical assistance and below-market financing to create independent units within existing homes, or by converting existing accessory structures into accessory dwelling units, or by building new detached ADUs.

II. DEFINITIONS
ADU or Accessory Dwelling Unit a separate dwelling unit containing living, sleeping, kitchen, and sanitation facilities located on a site within a residential zone that already contains one legally created dwelling unit (as provided in Chapter 18.96 of the Municipal Code of the City of East Palo Alto).

Borrower an income-qualified East Palo Alto homeowner household who receives a CalHome ADU/JADU Loan.

CalHome ADU/JADU Loan gap loans for the construction, reconstruction, repair, or rehabilitation of ADUs/JADUs for Lower Income households, as defined in H.S.C. §50052.5(b).

Deed of Trust deed of trust that is recorded against the Property to secure performance under the Regulatory Agreement and repayment of the CalHome ADU/JADU Loan.

Household one or more persons who will occupy a housing unit. Household members are not restricted to immediate family. Persons not considered part of the Household include: non-related live-in caretakers paid from an outside source, foster children, unborn children, and children being pursued for legal custody or adoption who are not 87 2
currently living with the household. A child who is subject to a shared-custody agreement, in which the child resides with the household at least 50% of the time, can be counted.

Household Income the annual gross income of all adult Household members (18 years and over) that is projected to be received during the coming 12-month period.

Household income is determined by utilizing the gross income determination requirements defined in California Code Regulations, title 25, section 6914 and Chapter 3 of the Income Calculation and Determination Guide for Federal Programs.

JADU or Junior Dwelling Unit a unit that is no more than 500 square feet in size and contained entirely within a single-family residence (as provided in Chapter 18.96 of the Municipal Code of the City of East Palo Alto).

Loan Agreement the Loan Agreement to be signed by Borrower and City that describes the CalHome ADU/JADU Loan to be provided by the City and the Borrower’s obligations under the Program.

Lower Income Household (as defined in H.S.C. §50052.5(b)) a household with a household income at or below the federal Section 8 income limits adjusted by household size and area in which they reside, as updated annually.

Main Dwelling a single family home, attached or detached, that is occupied by the East Palo Alto homeowner household eligible for a CalHome ADU/JADU Loan.

Owner-Occupant. The Borrower must establish and occupy the Property as his/her primary residence. Fee simple title or a leasehold interest that enables the lessee to make improvements on and encumber the property and has a term sufficient to secure the CalHome program Loan.

Property the site of the Main Dwelling owned by the Borrower where the ADU/JADU is to be constructed.

Regulatory Agreement the agreement imposing ADU/JADU rental restrictions that is recorded against the Property.
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III. ELIGIBILITY
The City or its designee [EPACANDO] shall conduct income and eligibility screening for the CalHome ADU/JADU Loan Program.

Eligibility Requirements
Low-income households, as defined in Section II. Definitions, are eligible for the CalHome ADU/JADU Loan Program. The Borrower household must be the owner and the primary occupant of the Main Dwelling at the time of application, and the Borrower must remain the primary occupant of either the Main Dwelling or the ADU/JADU after completion of ADU/JADU construction. The Main Dwelling must be located within the boundaries of the City of East Palo Alto.

Type of Housing Units Eligible

1. A single family home, attached or detached, whose lot is within a residential or mixed- use zoning district and includes one proposed or legally created dwelling

2. A single family home, attached or detached that currently has an active code case with the City of East Palo Alto
o When applicable, Borrower is to provide Notice of Violation. o The post-improvement/post-rehabilitation value of an eligible single family home may not exceed the median value for the County of San Mateo. The post-improvement value shall be determined based on the median sales price of single family homes in San Mateo County, as published on the Multiple Listing Service (MLS) or San Mateo County Association of Realtors (SAMCAR).

Residency & Ownership Qualification
To demonstrate residency and ownership, the Borrower shall be required, at a minimum, to submit the following documentation for Household Income qualification:
• Current homeowners insurance policy
• Utility bill current within the last 60 days
Income Qualification
To demonstrate income eligibility, the Borrower shall be required, at a minimum, to submit the following documentation for Household Income qualification:
• 2 most recent months of pay stubs
• 2 most recent years of tax returns
• 2 most recent months of bank statements
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Household Income Calculation and Household Size Determination Household Income shall be calculated as the annual gross income of all adult (18 years of age or older) Household members that is projected to be received during the coming 12-month period. The gross annual income is determined by calculating the Household’s total current monthly income and then multiplying that total by 12. If the current monthly income deviates by more than 15% from the preceding 12- month average, the gross annual income shall be determined by combining the preceding half year’s gross income with one-half year’s gross income at the current level.

The income verification may not be more than six months old at the time of loan funding (not at the time of loan approval).

The following is included in the calculation of gross annual Household income:
• All wages and salaries, overtime pay, commissions, fees, tips, bonuses, and other compensation for personal services, before payroll deductions; • The net income from the operation of a business or profession or from the rental of real or personal property (without deducting expenditures for business expansion or amortization of capital indebtedness, or any allowance for depreciation of capital assets);
• Interest and dividends (including income from assets, but only if applicable) • The full amount of periodic payments received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including any lump sum payment for the delayed start of a periodic payment;
• Payments in lieu of earnings, such as unemployment, disability compensation, and severance pay;
• The maximum amount of public assistance available to household members, other than the amount of assistance specifically designated for shelter and utilities; • Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the home;
• All regular pay, special pay, and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is the head of household or spouse.

The following is not included when in the calculation of gross annual income:
• Casual, sporadic or irregular gifts;
• Amounts that are specifically for, or in reimbursement of, medical expenses; • Lump sum additions to household assets, such as inheritances, insurance payments (including payments under health and accident insurance and 90 5
workmen’s compensation), capital gains, and settlement for personal losses; • Monies received for educational scholarships paid either directly to students, or to the educational institution, as well as amounts paid by the Government to a Veteran of the U.S. Armed Forces for use in meeting the costs of tuition, fees, books, and equipment. Any money received over and above the associated educational costs listed are not exempt and considered income; • Special pay to a person in the U.S. Armed Forces who is head of household who is deployed and exposed to hostile fire;
• Foster childcare payments;
• The value of benefits received from the Supplemental Nutrition Assistance Program;
• Payments to volunteers under the Domestic Volunteer Service Act of 1973; • Income derived from certain sub-marginal land of the United States that is held in trust for certain Indian tribes;
• Payments or allowances made under the Department of Health and Human Services’ Low-Income Home Energy Assistance Program; and • Payments received from the Job Training Partnership Act.

A percentage of the Household’s income from assets shall be added to the Household Income Calculation for households with assets in excess of $5,000. In those cases, the Household Income Calculation shall include the greater of: 1.) the actual income derived from such assets or 2.) a percentage of the value of such assets based on the current passbook savings rate, as specified by HUD.

Household assets shall only be considered for the determination of income eligibility calculation. Households will not be required to liquidate their assets to qualify for a CalHome ADU/JADU Loan. However, it is expected that the Household invests their funds first and only rely on the CalHome ADU/JADU Loan as gap financing.

Once Household size and gross income information have been established and verified, this information shall be compared to the published State income limits to determine eligibility for participation in the CalHome Program.

Financial Capacity
The Borrower must demonstrate financial capacity to complete the project. To demonstrate financial capacity, the Borrower shall be required, at a minimum, to submit the following documentation for Household Income qualification:
• Project Budget
• Evidence of credit commitments and cash adequate to cover total Project Costs 91 6
when combined with CalHome ADU/JADU Loan.

Borrower loan qualifications and documentation are addressed in Section VI.

Underwriting Requirements below.

IV. ELIGIBLE COSTS
A CalHome ADU/JADU Loan may be used for the following activities:
• Cost of construction, reconstruction, repair, conversion or rehabilitation; • Cost of structural modifications to the existing home necessary to accommodate an ADU or JADU Cost of building permits and other related public agency fees, including all fees necessary to build and occupy an ADU or a JADU;
• Cost of an appraisal, architectural, engineering, and other consultant services that are directly related to planning or construction; • Non-recurring Loan closing costs.

A CalHome ADU/JADU Loan may not be used for the following activities:
• Cost of installing, replacing or renovating the Main Dwelling, except as directly connected to the ADU or JADU physically or functionally; • Costs directly or indirectly related to the planning or construction of the ADU or JADU which have been or will be reimbursed as an eligible Activity Delivery Fee expense.

V. MAXIMUM ASSISTANCE AMOUNT
Maximum assistance shall not exceed $100,000. The Homeowner shall provide to the City evidence in such form as required by the City that sufficient funds are available and committed to cover the additional Project costs [see Section III. Eligibility – Financial Capacity].

The total loan amount (not to exceed $100,000) shall be divided into three distinct components:

1. Plans & Permits (more or less than $25,000)

2. System Upgrades (more or less than $25,000)

3. Construction Allowance (up to $100,000)
Payment phases are further described in the Cash Payment Schedule in Section IX.

CalHome ADU/JADU Program Construction Requirements below. 92 7
The total loan amount shall be determined by the City and/or its designee based on the following:
• The selected bid contractual amount;
• Supplemental inspections, including but not limited to termite, roofing, etc.; • Project budget with a contingency of at least 10 percent; • Title insurance fees and notary or document preparation fees; • Delivery fees, if any;
• Relocation expenses, if any.

VI. LOAN REQUIREMENTS
As part of the CalHome ADU/JADU Loan Program application, the Borrower must submit documentation to EPACANDO for loan prequalification. Borrowers are encouraged to work with EPACANDO through the entirety of the planning and construction process. EPACANDO shall review factors including, but not limited to:
loan to value ratio of the property and credit history of the Borrower.

Underwriting Requirements
• The Borrower(s) must have a middle FICO credit score of 680 or higher. • The Loan-to-Value Ratio, when combined with all other indebtedness secured by the property, may not exceed 100% of the pre-improvement value or 80% of the post-improvement value of the property, whichever is smaller.

The full loan application shall be submitted by the Borrower, with assistance from EPACANDO, to Meriwest Credit Union for underwriting.

The following documentation is included in the Loan Application:
• Drivers License or identification;
• Last 2 years of W-2s for all borrowers;
• Last 2 pay stubs for all borrowers;
• 2 most current bank statements;
• Credit report (authorization to pull credit);
• Tax returns from past 2 years;
• Copy of current mortgage payment statement or coupon and copy of homeowners insurance page that shows the amount of insurance coverage and premium.
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Maximum Loan-to-Value Ratio/Value of the Security
The Loan-to-Value Ratio, when combined with all other indebtedness secured by the property, may not exceed 100% of the pre-improvement value or 80% of the postimprovement value of the property, whichever is smaller.

The post-improvement value shall be determined using the sales of comparable properties approach using the median sales prices of single family homes in San Mateo County, as published on the Multiple Listing Service (MLS) or San Mateo County Association of Realtors (SAMCAR), or a similar approach which has the same result of protecting the homeowner from over-encumbering their property.

If the Borrower has obtained a recent (i.e., within 90 days of CalHome ADU Loan qualification date) appraisal of the post-improvement value of the property as part of qualifying for a cash-out refinance or home equity line of credit (HELOC) as part of financing the ADU/JADU, the City or its designee may use such appraisal.

In the absence of such available methods, the post-improvement value may be determined by a licensed appraiser. If applicable, the cost of the appraisal shall be combined into the loan assumed by the Borrower.

VII. LOAN AND INSURANCE DOCUMENTS
The following documents shall be prepared for Loan closing:
• Owner/Contractor Contract;
• Truth In Lending Disclosure Statement;
• Loan Agreement;
• Promissory Note(s);
• Deed of Trust (notarized);
• Regulatory Agreement (notarized) for Rental Unit;
• Request for Notice of Default (notarized);
• Notice of Right to Cancel (three-day rescission option); • Evidence of Hazard Insurance naming City as loss payee; • Evidence of flood insurance;
• Commitment for issuance of a lender’s title insurance policy for the benefit of City;
• Estimated settlement statement.
94 9
All loans made to the Borrower from the CalHome ADU/JADU Loan Program shall be evidenced by a Promissory Note, the repayment of which is secured by Deed of Trust.

These documents shall include provisions necessary to ensure that the Property being assisted with CalHome funds remains affordable and that CalHome funds are recaptured upon sale of the Property.

Upon expiration of the three-day rescission period, the Loan Agreement, the Deed of Trust, Regulatory Agreement, and Request for Notice of Default shall be recorded against the Property, and the title company selected by the City shall issue a lender’s policy of title insurance for the benefit of the City insuring the City’s lien.

All applicable documents shall be executed and recorded prior to disbursement of CalHome ADU/JADU Loan funds.

Any funds the Borrower will contribute toward construction or other costs must be deposited into escrow at closing of the CalHome ADU/JADU Loan.

Insurance Requirement
As noted in above, the Borrower must show evidence of property insurance, including fire and flood insurance if applicable, which must be maintained during the life of the CalHOME ADU/JADU Loan. The City must be named as loss payee in first position or additional insured if the loan is a junior lien.

The Homeowner must have sufficient insurance to cover the amount of the CalHome ADU/JADU Loan and all senior liens, up to the full value of the ADU/JADU post‐ construction. The City must be named on the policy as mortgagee/loss payee for the full term of the ADU Loan. Coverage deficiencies must be corrected as a condition of ADU Loan approval.

Further information on ongoing insurance requirements can be found in the attached Loan Servicing Plan.

Loan Terms
CalHome ADU/JADU Loans are deferred-payment loans bearing an interest rate of three percent (3%) simple interest. The Borrower is required to live on the property in the Main Dwelling or the ADU/JADU unit as their primary residence continuously and must recertify annually that they are the residents of the Main Dwelling or ADU/JADU and are the owners of both.

The Borrower is required to rent the ADU/JADU or the Main Dwelling to a Lower Income tenant household. Failure to rent to a Lower Income Household shall constitute a default of the CalHome ADU/JADU Loan.
95 10
CalHome ADU/JADU Loans are not assumable. The CalHome ADU/JADU Loan balance is immediately due and payable upon a change in occupancy. For further guidance on loan repayment, see the attached Loan Servicing Plan.

The Borrower may voluntarily prepay all or any portion of the CalHome ADU/JADU Loan at any time without penalty. If Borrower wishes to prepay the CalHome ADU/JADU Loan, the Borrower shall follow the procedures outlined in the attached Loan Servicing Plan.

IX. CALHOME CONSTRUCTION REQUIREMENTS
The ADU/JADU shall be constructed pursuant to the terms of the Loan Agreement and in strict accordance with any drawings, specifications, and/or other related documents submitted to and approved by the City and in compliance with all applicable laws, regulations, and rules of all governmental agencies having jurisdiction. This includes, but is not limited to, Chapter 18.96 (Accessory Dwelling Units) of the Municipal Code of the City of East Palo Alto.

The Borrower shall be responsible for securing or causing to be secured all permits, licenses and approvals which may be required by any governmental agency having jurisdiction over the Borrower’s property and ADU/JADU project. Nothing in these CalHome ADU/JADU Loan Program Guidelines shall represent, warrant, or guarantee that the City shall approve any permits, applications, plans, drawings, or other documents or submittals for the Project and homeowner assumes the risk thereof.

Scope of Work and Contractor Selection Process
Prior to the closing of the CalHome ADU/JADU Loan, the City or its designee [EPACANDO], shall complete an assessment of the Property which includes pre-design plans, cost estimates, and financing options. During this time, the City or its designee shall assist the Borrower to develop a Scope of Work based on this assessment and facilitate communication with potential contractors. Upon the Borrower’s written acceptance of the Scope of Work, the City or its designee shall assist the Borrower to secure the contractor.

Contractor Selection Process
Upon the Borrower’s selection of a contractor, the Borrower shall execute a construction contract directly with the contractor using standard documents substantially in a form approved by the City and in compliance with the CalHome Standard Agreement.

The contractor must be actively licensed by and bonded with the California State Licensing Board (CSLB). The contractor must have insurance in accordance with City96 11 required limits, listing the Property address and naming the City and the Borrower as additional insured.

The construction contract shall include a start and completion date, payment schedule, and a clause that specifies that any extra work must be agreed to in writing and approved by City staff and the Borrower. The construction contract shall also specify that construction may not commence until the City or its designee issues a Notice to Proceed.

This contract shall be executed concurrently with the Loan Documents as described in Section VII.

Pre-Construction Conference
When applicable, prior to the start of construction of the ADU/JADU, the City or its designee shall lead a pre-construction conference with the Borrower, the selected contractor, and any sub-contractors to develop a construction schedule, select materials, and review the terms of the contract.

Work Inspections
The City or its designee shall inspect any work performed under the CalHome ADU/JADU Loan program to ensure the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, any applicable construction contract, and the CalHome Standard Agreement with the Department of Housing and Community Development. All work found by such inspections not conformed to the applicable requirements shall be corrected, and payment withheld to the contractor or subcontractor until it is so corrected.

Additional inspections may occur at other times in the construction process as deemed appropriate by the City or its designee and with authorization of the Borrower.

CalHome ADU Loan Payment Schedule
CalHome ADU Loan payments shall be released based on the project achieving certain specified milestones. CalHome Loan payments shall be issued in installments after a work inspection is completed by the City or its designee at the following points (note that if the loan is covering full construction costs, the program administrator can determine the payment installments):

1. Building Permit Issuance: more or less than $25,000

2. Foundation Approval or the equivalent if rehab: more or less than $12,500

3. System Upgrade signed off or Plumbing inspection passed: more or less than $12,500

4. Drywall inspection signed off, or equivalent if rehab: more or less than $40,000

5. Final inspection passed: more or less than $10,000
97 12
The 10% Lien Release Contingency shall be held for 35 days after recordation of the Notice of Completion and will be released upon verification by City staff that no liens were recorded. Substantial completion shall be defined as 100% completion with no outstanding deficiencies.

Prevailing Wage Requirement
Construction funds provided through the CalHome ADU/JADU Loan Program shall meet the requirements of Chapter 1 (commencing with Section 1720) of Part 7 of the Labor Code (pertaining to the payment of prevailing wages and administered by the California Department of Industrial Relations), and in particular the exemption of construction and rehabilitation of privately owned residential projects (Section 1720(c)(5)).

Signage
During the construction period, the California Department of Housing and Community Development may place one or more signs on the construction site stating that it is providing financing for the development.

X. CALHOME PROGRAM RENTAL REQUIREMENTS
Borrowers shall rent the ADU/JADU constructed with a CalHome ADU/JADU Loan at an affordable rent to a Lower Income Household, as defined in H.S.C. §50053. The affordable rent shall be provided by the City or its designee based on the income limits published annually by the California Department of Housing and Community Development and utilizing the occupancy standard of the number of bedrooms plus one.

The Borrower shall be responsible for selection of an eligible tenant but may work with the City’s designee [EPACANDO] to identify suitable tenants. The City shall review the proposed tenant’s income and proposed rent prior to signing of lease and prior to tenant move-in. The Borrower must comply with all applicable city, state, and federal laws pertaining to renting residential properties, including without limitation, all applicable fair housing and nondiscrimination laws, landlord-tenant laws, and local good cause for eviction and tenant protection laws.

ADU/JADUs constructed with a CalHome ADU/JADU Loan shall be rented for a minimum of 30 days; no short-term or vacation rentals shall be permitted.

The CalHome ADU/JADU Program rental requirements shall be specified in the Regulatory Agreement that is recorded against the property at loan closing. If the Borrower ceases to rent the ADU/JADU in compliance with the Regulatory Agreement (other than for normal unit turnover or repairs) and other applicable agreements, then the CalHome ADU/JADU Loan shall become immediately due and payable. 98 13
XI. AMENDMENTS
The City may make amendments to these CalHome ADU/JADU Loan Program Guidelines. Any changes made shall be in accordance with federal and state regulations and shall be submitted to the California Department of Housing and Community Development for approval.

XII. ATTACHMENTS

1. Loan Servicing Plan

2. Reuse Account Plan

3. Income Limits

4. Marketing Plan
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Attachment 1

LOAN SERVICING PLAN
The City of East Palo Alto (City) will contract with East Palo Alto Community Alliance and Neighborhood Development Organization (EPACANDO) /and AmeriNat as a third-party service provider to administer the CalHome ADU/JADU Loan Program. The City will be responsible for overseeing the administration and operation of the CalHome ADU/JADU Loan Program and for servicing of CalHome ADU/JADU Loans after construction is completed.

The City will receive loan payments and maintain a financial record-keeping system to record payments and file statements on payment status. Payments will be deposited and accounted for in the City’s Program Income Account, as required by all California State Department of Housing and Community Development (“Department”) programs.

The City will accept loan payments from Borrowers prepaying deferred loans and from Borrowers making payments in full upon sale or transfer of the property.

The City may, at its discretion, enter into an agreement with a third party to collect and distribute payments and/or perform some or all loan servicing aspects of the CalHome ADU/JADU Loan Program.

The City outlines its Loan Servicing Plan (“Plan”) for the CalHome ADU/JADU Loan Program below.

ANNUAL REVIEW OF OWNER-OCCUPANCY REQUIREMENT
The Borrower is required to live on the property in the Main Dwelling or the ADU/JADU unit as their primary residence. Borrowers are required to recertify annually that they are the residents of the Main Dwelling or ADU/JADU and are the owners of both. Owner occupancy will be verified through utility bills or similar documentation.

The Borrower must also submit documentation acceptable to the City establishing that the household occupying the rental unit is income-eligible (i.e., Lower Income, as defined in H.S.C. §50052.5(b)) to reside in the unit and that the monthly rent charged meets affordability requirements. Short-term rental of the units is prohibited.

The CalHome ADU/JADU Loan balance is immediately due and payable upon a change in title, occupancy, or use. CalHome ADU/JADU Loans are not assumable. Changes in title, occupancy, or use include, but are not limited to, the following:
100
15 • The sale of the main dwelling.
• Conversion of any units on the property from owner-occupied to rental. • Conversion of the property to a fully non-residential use. • Transfer of the property through inheritance.

Exceptions to the change in occupancy may include additions of family members to the title as part of estate planning, or partial conversion of property to non-residential use, e.g., if the residence is used for business but the household still resides on the property.

Any of these City approved changes in title or occupancy must be in keeping with the objective of benefit to Lower Income households, as applicable.

There are some limited circumstances under which the CalHome loan may be transferable. Transfer means any sale, assignment or transfer, voluntary or involuntary, of any interest in either the main dwelling or the ADU/JADU, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest, an interest evidenced by a land contract by which possession of the property is transferred and Borrower retains title, or a deed of trust.

With City approval, the following transfers may not result in the CalHome Loan becoming due and payable:

1. Transfer to a spouse or domestic partner;

2. Addition of spouse or domestic partner to title where the spouse or domestic partner becomes the co-owner of the main dwelling;

3. Transfer between spouses as part of a marriage dissolution proceeding;

4. Transfer to spouse or domestic partner following death of the Borrower;

5. Transfer via an inter vivos trust in which the Borrower is the beneficiary;

6. Refinance of the first loan, provided Borrower follows all requirements under subsection Requests for Subordination.

In all cases where there is a change in title, occupancy, or use, the Borrower must notify the City.

ANNUAL REVIEW OF HAZARD AND FLOOD INSURANCE
The Borrower must maintain property insurance, including fire and flood insurance if applicable, during the life of the CalHome ADU/JADU Loan. The City must be named as loss payee in first position or additional insured if the loan is a junior lien.

The Borrower must have sufficient insurance to cover the amount of the CalHome ADU/JADU Loan and all senior liens, up to the full value of the ADU post‐construction.

The City must be named on the policy as mortgagee/loss payee for the full term of the CalHome ADU/JADU Loan. Coverage deficiencies must be corrected as a condition of 101
16 CalHome ADU/JADU Loan approval.

The City will review insurance information on an annual basis as part of its annual CalHome ADU/JADU Loan monitoring process. Borrowers will be required to submit verification of the current required insurance policies. Failure to maintain the proper insurance will constitute a default of the CalHome ADU/JADU Loan. If the Borrower fails to maintain the necessary insurance, the City may take out force-placed insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of the Borrower’s new insurance.

TIMELY PAYMENT OF PROPERTY TAXES AND ASSESSMENTS
The Borrower is responsible for making property tax payments on a timely basis during the term of the loan.

The City encourages Borrowers to have impound accounts set up with their first mortgagee to pay their taxes and insurance as part of their monthly mortgage payment.

The City will review property tax and assessment payment information on an annual basis as part of its annual CalHome ADU/JADU Loan monitoring process. Borrowers will be required to submit verification that property tax payments are current.

Failure to pay property taxes on a timely basis will constitute a default of the CalHome ADU/JADU Loan. In the case of failure to maintain payment of property taxes, the City may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan.

LOAN REPAYMENTS
The City is the recipient of any interest and principal payments on CalHome ADU/JADU Loans from Borrowers. While payments on the CalHome ADU/JADU Loan are deferred, Borrowers may opt to make payments to lower the balance of the CalHome ADU/JADU Loan at any time with no penalty. Loan payments will be credited to the interest first and then to principal.

CalHome ADU/JADU Loans must be paid in full if the property including the ADU is transferred, except as expressly allowed under the Program Guidelines, or otherwise becomes out of compliance.
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17 The City will deposit the CalHome ADU/JADU Loan repayment into the City’s CalHome Account, as defined in the CalHome Reuse Account Plan, so that it can be reused for an eligible CalHome activity.

CalHome ADU/JADU Loan construction projects may result in a credit to the principal due to funds not being expended on the project. If this occurs, a principal reduction will be made to the CalHome ADU/JADU Loan for amounts less than $1,000. For amounts exceeding $1,000, a loan modification will be prepared and executed with the new loan amount.

PROPERLY CALCULATING PAYOFFS
Borrowers are eligible to pay-off their loans at any time without penalty. Payoff amounts are determined by the amount of the original CalHome ADU/JADU Loan plus any accrued interest minus payments received toward the CalHome ADU/JADU Loan, if any.

Borrowers may make voluntary payments to lower the balance of the CalHome ADU/JADU Loan. Any payments received will be applied to the applicable account and considered when calculating the payoff amount.

Any payments received towards the CalHome ADU/JADU Loan will be applied first to accrued interest, then toward the principal. The funds will be placed in a Reuse Account and be reused for eligible Program purposes (see Reuse Account Plan).

PROCESSING DEMANDS
Requests for payoff demands should be addressed to the City. When the City receives a demand letter from a Borrower or a Borrower’s representative, such as a title company, lender or legal representative, the City will calculate the payoff amount in accordance with the provisions of the Loan Documents, as defined in the Program Guidelines. Within 21 days of receipt of the demand letter, the City will issue a written payoff demand, including a daily calculation of interest and any other amounts due, depending on the terms of the Promissory Note.

Within 21 days of payoff, the City will execute and deliver to the Borrower the reconveyance of the Promissory Note and Deed of Trust and record them with the County of San Mateo.

REQUESTS FOR SUBORDINATION
If the Borrower wishes to refinance an existing senior lien, they must request a subordination by the City. The City will only subordinate its loan when there is no “cash 103
18 out” as part of the refinance and places the Borrower in a more favorable position. “Cash out” means there are no additional charges on the transaction above loan and escrow closing fees. There can be no third-party debt pay offs or additional encumbrance on the property above traditional refinance transaction costs. Furthermore, the refinance should lower the housing cost of the Borrower with a lower interest rate and the total indebtedness on the property should not exceed the current market value.

The term of the new senior lien must be at least for the period remaining on the CalHome ADU/JADU Loan and must mature concurrently with, or after,
the CalHome lien. The new loan must be amortized for the entire period of the loan.

Negative amortization, balloon payments, or changes in payments are not allowed.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the City for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the City.

REQUEST FOR NOTICE OF DEFAULT
The City will prepare and record a Request for Notice of Default for each senior lien in front of the CalHome ADU/JADU Loan. This document requires any senior lien holder listed in the notice to notify the City of initiation of a foreclosure action. The City will then have time to contact the Borrower and assist them in bringing the first loan current or to determine if the loan can be made whole or preserved. If the City is in third position and receives notification of foreclosure from only one senior lien holder, it may contact any other senior lien holders regarding the status of their loans.

COLLECTION OF CALHOME ADU/JADU LOAN PROGRAM NOTES IN DEFAULT

OR FORECLOSURE
In the event of any default by Borrower of one or more of the CalHome ADU/JADU Loan terms, the City may initiate foreclosure proceedings. The City will first issue a letter to the Borrower notifying them of the default situation. If the default situation continues, the City may start a formal process of foreclosure.

The sale proceeds will be applied as follows:

1. The reasonable and necessary expenses for preparing and conducting the sale including space rent and any other expenses incurred by the City;

2. The satisfaction of indebtedness secured by all senior liens or encumbrances in order of their priority;

3. The satisfaction of indebtedness secured by the security interest of the City’s lien;

4. The satisfaction of indebtedness secured by any subordinate liens or encumbrances on the property in the order of their priority; and

5. To the registered owner within 45 days after the sale if a surplus remains. 104
19 Attachment 2

REUSE ACCOUNT
PLAN
Purpose: The State of California CalHome Program requires jurisdictions to establish guidelines on the policies and procedures for the administration and utilization of program income received as a result of activities funded under the CalHome Program.

Reuse Plan Governing Regulations: This Reuse Plan is intended to satisfy the requirements specified in Article 2, Section 7724 (Reuse Account) of the CalHome Program, Title 25California Code of Regulations, Division 1, Chapter 7, Subchapter 9, Commencing with Section 7715. The Authority cited: Section 50406(n) and 506650.2, Health and Safety Code. Reference: 50650.3 (b), Health and Safety Code. This Reuse Plan has been developed to meet that requirement.

Definition. Reuse Account funds are defined as funds received by the City that have been directly generated from the use and return of CalHome Program funds.

Examples of Reuse items include the following: payments of principal and interest on the CalHome Program loans as well as interest earned on account accrual.

Reuse Account. All repayments of CalHome ADU/JADU Loan principal and any CalHome interest shall be deposited into a separately maintained Reuse Account.

All interest earned on deposited CalHome Program funds will accrue to the Reuse Account and be reused for eligible CalHome Program activities.

Portfolio Management Costs. Costs of managing the portfolio of CalHome funded loans may be charged to the Reuse Account under Activity Delivery Fees within the allowable limits set by the Department.

Reuses of Funds. Reuse Account funds will only be used for CalHome Program eligible activities:

1. Gap loans for ADU/JADU construction, reconstruction, repair, or rehabilitation to Lower Income households; or

2. Up to five percent (5%) of deposited funds for loan servicing by the City or a third- party loan servicer.

Loans from the Reuse Account may be made to homebuyers in areas not previously allowed, or in loan amounts differing from the prior loan amounts. Before making such new loans, the City shall create updated CalHome Program Guidelines to which the new loans must conform. Loans made with some funds from the reuse 105
20 account and some funds from the grant are not subject to the restrictions of the grant.

Distribution and Tracking of Reuse Account Funds. The City will institute a tracking system to track:

1. The receipt of CalHome loan repayments and interest accrual into the Reuse Account. Loan repayments towards the principal loan amount and repayments towards interest accrued on the loan will be tracked separately.

2. The allocation of Reuse Account funds to new loans to ADU/JADU development.

3. The use of funds for processing fees and other eligible activity delivery fees and loan servicing fees (of up to 5%).

Loan repayments deposited into the Reuse Account and loan disbursals from the Reuse Account will be tracked by borrower name, loan number, loan amount, and grant year.

Reporting and Federal Overlay Compliance. The City will comply with all State reporting requirements, including submittal of Quarterly and Annual Status Reports on CalHome Program funds. The City will ensure that the use of funds under this Reuse Plan complies with all CalHome Program requirements. To ensure ongoing compliance with CalHome requirements, the City will utilize the latest available State of California CalHome Program Management Manual for guidanceon compliance procedures and policies.

Long Term Monitoring Agreement. The City will enter into a long-term monitoring agreement with the Department allowing Department monitoring of reuse accounts for compliance with all program requirements.

Maximize Funds in Reuse Account. The City will strive to utilize reuse funds on a revolving basis in a timely manner and will not stockpile funds.

Revising this Plan. City staff is authorized to amend this document as necessary to maintain compliance with CalHome Program requirements. All modifications to the Reuse Account Plan are subject to final approval by the Department. 106
21 Attachment 3

INCOME LIMITS
Will be attached
107
22 Attachment 4

MARKETING PLAN
A. Program Outreach and Marketing All outreach efforts will be done in accordance with state and federal fair housing and lending laws to ensure nondiscriminatory treatment, outreach and access to the Program. No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender, gender identity or sexual orientation, be excluded, denied benefits, or be subjected to discrimination under the Program. The City will ensure that all persons, including qualified individuals with disabilities, have access to the Program.

B. Fair Housing The Fair Housing Lender logo will be placed on all outreach materials.

Flyers or other outreach materials, in English and Spanish, will be distributed in the Program area, and will be provided to local social service agencies.

C. Dispute Resolution and Appeals Procedure Any applicant denied participation in the Program has the right to appeal. The appeal must be made in writing and addressed to the City’s Housing Manager, who will make a determination in writing within 30 days of receipt of the appeal. If the applicant’s appeal is denied, a further appeal may be made to the City Council which will make a determination in writing within 30 days of receipt of the second appeal. The decision of the City Council will be final.

D. Non-Discrimination Requirements The Program will be implemented consistent with the City’s commitment to nondiscrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under, any program or activity funded in whole or in part with City or State funds on the basis of his or her religion or religious affiliation, age, race, color, creed, gender, gender identity, sexual orientation, marital status, familial status (children), physical or mental disability, national origin, or ancestry, or other arbitrary cause. 108
CONSENT ITEM 3.6

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Jeff Liu, Chief of Police
SUBJECT: Renewal purchase agreement with Axon Enterprise, Inc. to replace and upgrade all current police camera equipment for use by the East Palo Alto Police Department.

Recommendation
Adopt a resolution:

1. Authorizing the City Manager to award to, negotiate, and execute a contract with Axon Enterprise Inc. of Scottsdale, Arizona, in a form approved by the City Attorney, for the purchase of video cameras, equipment, and infrastructure for the Police Department for five years and eight months, in an amount not to exceed $766,483.98;

2. Finding that special circumstances warrant disregarding bid procedure pursuant to section 2.84.070(D) of the East Palo Alto Municipal Code; and

3. Finding that 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) (5) in that it is a governmental fiscal, organizational, or administrative activity that will not result in direct or indirect changes in the environment.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
 Promote Health & Public Safety
109
CONSENT ITEM 3.6
 Ensure our financial and organizational health.

Background
The department has relied upon Axon Enterprise Inc. for police video recording systems to document the activities and statements of its officers and the members of the public using Axon’s Body Worn (BWC), In-Car (Fleet), interview room cameras and data management solution. The department has found Axon to be a reliable resource and has experienced no issues with the equipment or data management solution during the term of our previous contract. Additionally, Axon has continuously improved upon their service delivery and has been setting the pace for police technological developments.

The original agreement was approved by City Council on November 8, 2018, authorizing the purchase of the body-worn cameras, equipment, and infrastructure. On March 17, 2020, the City Council approved a purchase agreement with Axon for the addition of fleet and interview room equipment used by the East Palo Alto Police Department. The term of the purchase agreement has expired, and a renewal of the Axon purchase agreement is necessary.

Prior to the original Axon purchase in 2018, staff conducted extensive research of all the BWC camera providers in the market at the time, including evaluating each solution by evaluating their product capabilities and research conducted through agencies which had employed their product. After conducting extensive research, the top five vendors were invited to present their product to our internal BWC evaluation team, during which each vendor had an opportunity to present their product and answer relevant questions.

The top three BWC vendors were then selected for field testing by our evaluation team, consisting of patrol personnel. Each BWC was tested for a two-week period and compared against each other using 16 categories. At the conclusion of the evaluation period, Axon was clearly the superior product.

In 2020 the Police Department, with City Council authority, secured the addition of Axon Fleet cameras which records dash camera and rear facing prisoner cage video recording capabilities, and the Axon Interview Room audio / video recording solution for two interview rooms.

An important consideration when employing BWC, Fleet, and Interview room audio/video recording is evidence storage management. Axon has reliably provided the “evidence.com” online evidence management solution, which enables our personnel to view, categorize, redact, and share evidence with law enforcement partners including the District Attorney’s Office. This online evidence management solution has eliminated the necessity for EPAPD personnel to save video files to DVD, book physical copies into evidence, and make multiple copies of each disc for the District Attorney and for Defense discovery purposes, saving countless hours of staff time and leading to increased efficiency. Furthermore, Axon stores all of this data on their servers, which can be accessed through the cloud. All footage from the past five or more years is currently stored on Axon servers.
110
CONSENT ITEM 3.6
Staff has been closely monitoring new technology in the law enforcement profession, particularly the BWC market, and have found that Axon consistently offers superior products. From the time the EPAPD acquired Axon products, Axon’s market share has continued to expand as the majority of law enforcement agencies have adopted their technology.

Axon developed a new product named Draft One, which leverages evidence.com and artificial intelligence to aid personnel in efficiently producing detailed police reports.

Draft One analyzes audio generated from evidence.com recordings to generate approximately 80% of a police report, which is then provided to the Officer for editing.

The Officer, with most of the report automatically generated, is then responsible for editing the report to ensure accuracy, add pertinent details, and certify the report as factual. During beta testing, Draft One has already saved police personnel a significant amount of report writing time, resulting in more active patrols and a reduction in report writing overtime. Draft One, which is proprietary to Axon, is incorporated in Axon’s fiveyear purchase contract.

Analysis
Renewing the contract with Axon allows our police department to maintain our BWC, Fleet, and interview room recording capabilities. Additionally, the contract would add the Draft One report writing solution, making our police personnel more efficient, effective, and visible to our community with more time available for patrols.

Staff does not recommend changing vendors at this time for multiple reasons, including:
 A switch from Axon would require the City to transfer 5 or more years of footage to another server.
 Axon has proven to be a reliable solution over the term of the previous contract and the premier law enforcement solution for video evidence collection.  No other company offers the Draft One report writing solution at this time, in addition to level and quality of services provided by the Axon software suite, including BWC, mobile video, and interview room recording capabilities. 111
CONSENT ITEM 3.6
The City Manager recommends dispensing with formal bid procedures pursuant to Municipal Code Section 28.84.70(D) due to the special circumstances. First, Axon currently provides the Draft One Report Writing solution which is not offered by other vendors that also provides. Second, Axon provides a superior level and quality of service through its comprehensive Axon software suite, including BWC, mobile video, and interview room recording capabilities. Third, given the comprehensive review by staff that lead to procurement of Axon software services and recent experience by neighboring jurisdictions, staff believes issuing a new RFP will not lead to material savings to justify the disruption in service that arises from procuring and integrating a new software solution.

Fiscal Impact
The annual fiscal impact will be $115,508.16 this fiscal year and thereafter $162.483.95 until the term of the agreement. No new appropriation is necessary as this amount is already budgeted for the technology fund. This amount will also be budgeted in future fiscal years. Over five years, the total fiscal impact will be up to $766,483.98. However, there will be no increase in the adopted General Fund expenditure.

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.

Government Code § 84308
Applicability of Levine Act: Yes.

Analysis of Levine Act Compliance: The signator(ies)y for the agreements Robert Driscoll, Deputy General Counsel, Axon Enterprise, Inc. Staff is unaware of any other parties or participants relevant to the Council’s consideration of this item.

Attachments

1. Resolution

2. Axon Purchase Agreement

3. Axon quote
112
RESOLUTION NO. –2024

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO AWARD TO, NEGOTIATE, AND EXECUTE A CONTRACT FOR AXON ENTERPRISE INC., SCOTTSDALE, ARIZONA, IN A

FORM APPROVED BY THE CITY ATTORNEY, FOR THE PURCHASE OF VIDEO

CAMERAS, EQUIPMENT, AND INFRASTRUCTURE FOR THE POLICE

DEPARTMENT FOR FIVE YEARS AND EIGHT MONTHS IN AN AMOUNT OF $115,508.16 FOR THE FIRST YEAR AND THEREAFTER $162,743.95 PER YEAR FOR A TOTAL OF $766,483.98 OVER FIVE YEARS, ALLOWING FOR

ADJUSTMENTS BASED ON CHANGES IN TAX RATES
WHEREAS, the Police Department has relied on Axon Enterprises Inc for police video recording systems to document the activities and statements of its officers and the members of the public using Axon’s Body Worn (BWC), In-Car (Fleet), interview room cameras and data management solution for the past five years; and WHEREAS, the department has found Axon to be a reliable resource and has experienced no issues with the equipment or data management solution during the term of our previous contract; and
WHEREAS, the City Council previously authorized two prior City Managers to enter in a five -year purchase agreement with Axon Enterprise Inc. for the acquisition of cameras and equipment for vital services for the Police Department; and WHEREAS, Section 2.84.070(D) of the Municipal Code authorizes the City Council to waive the bidding procedures; and the City Manager recommends waiving the bidding procedures due to the specialized services offered, the superior quality of those services, and the likelihood that an RFP would result in a substantially lower price with similar level of services; and
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, negotiate, and execute a contract with Axon Enterprise Inc. of Scottsdale, Arizona, in a form approved by the City Attorney, for the purchase of video cameras, equipment, and infrastructure for the Police Department for five years and eight months in an amount not to exceed $766,483.98;
113

3. Finds that 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) (5) in that it is a governmental fiscal, organizational, or administrative activity that will not result in direct or indirect changes in the environment.

PASSED AND ADOPTED this 25th day of July 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
114

Page 1 ends

Q-587972-45469.928DB
Issued: 06/26/2024
Quote Expiration: 07/19/2024
Estimated Contract Start Date: 04/01/2024
Account Number: 300481
Payment Terms: N30
Delivery Method:

SHIP TO BILL TO SALES REPRESENTATIVE PRIMARY CONTACT
East Palo Alto Police Dept. - CA
141 Demeter St
East Palo Alto,
CA
94303-1302
USA
East Palo Alto Police Dept. - CA
141 Demeter St
East Palo Alto
CA
94303-1302
USA
Email:

Daniel Birt
Phone:

Email: [email protected]
Fax:

Jeff Liu
Phone: (650) 853-5904
Email: [email protected]
Fax: (650) 853-3124
Quote Summary Discount Summary
Program Length 68 Months Average Savings Per Year $37,079.70 TOTAL COST $755,794.18
ESTIMATED TOTAL W/ TAX $766,483.98 TOTAL SAVINGS $210,118.28 Axon Enterprise, Inc.
17800 N 85th St.

Scottsdale, Arizona 85255
United States
VAT: 86-0741227
Domestic: (800) 978-2737
International: +1.800.978.2737
115

Page 2 ends

Payment Summary
Date Subtotal Tax Total
Nov 2024 $112,811.18 $2,696.98 $115,508.16
Nov 2025 $160,745.75 $1,998.20 $162,743.95
Nov 2026 $160,745.75 $1,998.20 $162,743.95
Nov 2027 $160,745.75 $1,998.20 $162,743.95
Nov 2028 $160,745.75 $1,998.22 $162,743.97
Total $755,794.18 $10,689.80 $766,483.98
116

Page 3 ends

Quote Unbundled Price: $965,912.46
Quote List Price: $925,870.86
Quote Subtotal: $755,794.18
Pricing
All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program
100553 TRANSFER CREDIT - SOFTWARE AND SERVICES 1 $1.00 $4,870.50 $4,870.50 $0.00 $4,870.50 100552 TRANSFER CREDIT - GOODS 1 $1.00 $16,632.00 $16,632.00 $1,642.41 $18,274.41 Fleet3B Fleet 3 Basic 22 60 $148.08 $161.41 $108.58 $143,325.60 $660.66 $143,986.26 BWCUwTAP BWC Unlimited with TAP 43 60 $122.00 $99.66 $99.66 $257,122.80 $8,386.73 $265,509.53 A la Carte Hardware
R1900Kit CRADLEPOINT R1900 SINGLE MODEM KIT 22 60 $3,363.00 $0.00 $0.00 $0.00 $0.00 H00002 AB4 Multi Bay Dock Bundle 6 $1,638.90 $0.00 $0.00 $0.00 $0.00 H00001 AB4 Camera Bundle 43 $849.00 $0.00 $0.00 $0.00 $0.00 A la Carte Software
80214 AXON EVIDENCE - STORAGE - FLEET 21 1 $35.40 $0.00 $0.00 $0.00 $0.00 87050 AXON EVIDENCE - FLEET VIEW XL LICENSE 21 1 $30.20 $0.00 $0.00 $0.00 $0.00 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER
TOUCH PANEL 1 1 $26.00 $0.00 $0.00 $0.00 $0.00
50043 AXON INTERVIEW - STREAMING SERVER
MAINTENANCE - PER SERVER 2 1 $30.40 $0.00 $0.00 $0.00 $0.00 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM
UNLIMITED 4 1 $103.00 $0.00 $0.00 $0.00 $0.00
73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 132 8 $0.60 $0.60 $633.60 $0.00 $633.60 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER
TOUCH PANEL 1 33 $26.94 $27.76 $915.96 $0.00 $915.96
50043 AXON INTERVIEW - STREAMING SERVER
MAINTENANCE - PER SERVER 2 33 $31.50 $32.45 $2,142.00 $0.00 $2,142.00 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON
DEVICE) 11 8 $25.00 $25.00 $2,200.00 $0.00 $2,200.00
50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM
UNLIMITED 4 33 $106.74 $109.97 $14,516.64 $0.00 $14,516.64 73680 AXON RESPOND PLUS - LICENSE 43 60 $21.48 $21.48 $55,418.40 $0.00 $55,418.40 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 43 60 $22.57 $22.57 $58,230.60 $0.00 $58,230.60 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT
WRITING 43 60 $70.52 $70.52 $181,941.60 $0.00 $181,941.60 ProLicense Pro License Bundle 4 60 $43.40 $43.33 $10,399.20 $0.00 $10,399.20 BasicLicense Basic License Bundle 1 8 $15.00 $15.00 $120.00 $0.00 $120.00 ProLicense Pro License Bundle 11 8 $40.00 $40.00 $3,520.00 $0.00 $3,520.00 A la Carte Warranties
73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED
WARRANTY 21 1 $0.00 $0.00 $0.00 $0.00 $0.00
80397 AXON FLEET 2 - EXT WARRANTY - FLEET 2 KIT 21 1 $6.80 $0.00 $0.00 $0.00 $0.00 50448 AXON INTERVIEW - EXT WARRANTY 4 1 $27.00 $0.00 $0.00 $0.00 $0.00 50448 AXON INTERVIEW - EXT WARRANTY 4 33 $27.98 $28.83 $3,805.28 $0.00 $3,805.28 Total $755,794.18 $10,689.80 $766,483.98
117

Page 4 ends

Delivery Schedule
Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 43 1 11/01/2024 AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 1 1 11/01/2024 AB4 Camera Bundle 100466 AXON BODY 4 - CABLE - USB-C TO USB-C 48 1 11/01/2024 AB4 Camera Bundle 74028 AXON BODY - MOUNT - WING CLIP RAPIDLOCK 48 1 11/01/2024 AB4 Multi Bay Dock Bundle 100206 AXON BODY 4 - DOCK - EIGHT BAY 6 1 11/01/2024 AB4 Multi Bay Dock Bundle 70033 AXON - DOCK WALL MOUNT - BRACKET ASSY 6 1 11/01/2024 AB4 Multi Bay Dock Bundle 71019 AXON BODY - DOCK POWERCORD - NORTH AMERICA 6 1 11/01/2024 CRADLEPOINT R1900 SINGLE MODEM KIT 100145 AXON FLEET - AIRGAIN ANT - 7-IN-1 WH 4LTE/5G 2WIFI 1GNSS 22 1 11/01/2024 CRADLEPOINT R1900 SINGLE MODEM KIT 100146 AXON FLEET - CRADLEPOINT R1900-5GB-GA+5YR NETCLOUD 22 1 11/01/2024 CRADLEPOINT R1900 SINGLE MODEM KIT 72048 AXON FLEET 3 - SIM INSERTION - ATT 22 1 11/01/2024 Fleet 3 Basic 70112 AXON SIGNAL - SIGNAL UNIT 22 1 11/01/2024 Fleet 3 Basic 72036 AXON FLEET 3 - STANDARD 2 CAMERA KIT 22 1 11/01/2024 BWC Unlimited with TAP 73309 AXON BODY - TAP REFRESH 1 - CAMERA 44 1 05/01/2027 BWC Unlimited with TAP 73689 AXON BODY - TAP REFRESH 1 - DOCK MULTI BAY 6 1 05/01/2027 BWC Unlimited with TAP 73310 AXON BODY - TAP REFRESH 2 - CAMERA 44 1 11/01/2029 BWC Unlimited with TAP 73688 AXON BODY - TAP REFRESH 2 - DOCK MULTI BAY 6 1 11/01/2029 Software
Bundle Item Description QTY Estimated Start Date Estimated End Date Basic License Bundle 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 1 04/01/2024 11/30/2024 Basic License Bundle 73840 AXON EVIDENCE - ECOM LICENSE - BASIC 1 04/01/2024 11/30/2024 Pro License Bundle 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 33 04/01/2024 11/30/2024 Pro License Bundle 73746 AXON EVIDENCE - ECOM LICENSE - PRO 11 04/01/2024 11/30/2024 A la Carte 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 132 04/01/2024 11/30/2024 A la Carte 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 11 04/01/2024 11/30/2024 A la Carte 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 11/15/2024 12/14/2024 A la Carte 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 11/15/2024 12/14/2024
A la Carte 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 11/15/2024 12/14/2024 A la Carte 80214 AXON EVIDENCE - STORAGE - FLEET 21 11/15/2024 12/14/2024 A la Carte 87050 AXON EVIDENCE - FLEET VIEW XL LICENSE 21 11/15/2024 12/14/2024 BWC Unlimited with TAP 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 43 12/01/2024 11/30/2029 BWC Unlimited with TAP 73746 AXON EVIDENCE - ECOM LICENSE - PRO 43 12/01/2024 11/30/2029 Fleet 3 Basic 80400 AXON EVIDENCE - FLEET VEHICLE LICENSE 22 12/01/2024 11/30/2029 Fleet 3 Basic 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 44 12/01/2024 11/30/2029 Pro License Bundle 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 12 12/01/2024 11/30/2029 Pro License Bundle 73746 AXON EVIDENCE - ECOM LICENSE - PRO 4 12/01/2024 11/30/2029 A la Carte 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 43 12/01/2024 11/30/2029 A la Carte 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 12/01/2024 09/14/2027 A la Carte 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 12/01/2024 09/14/2027
118

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Bundle Item Description QTY Shipping Location Estimated Delivery Date A la Carte 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 12/01/2024 09/14/2027 A la Carte 73680 AXON RESPOND PLUS - LICENSE 43 12/01/2024 11/30/2029 A la Carte 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 43 12/01/2024 11/30/2029 Services
Bundle Item Description QTY
Fleet 3 Basic 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT OVERSIZED 22 Warranties
Bundle Item Description QTY Estimated Start Date Estimated End Date A la Carte 50448 AXON INTERVIEW - EXT WARRANTY 4 11/15/2024 12/14/2024 A la Carte 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 21 11/15/2024 12/14/2024 A la Carte 80397 AXON FLEET 2 - EXT WARRANTY - FLEET 2 KIT 21 11/15/2024 12/14/2024 A la Carte 50448 AXON INTERVIEW - EXT WARRANTY 4 12/01/2024 09/14/2027 BWC Unlimited with TAP 80464 AXON BODY - TAP WARRANTY - CAMERA 43 11/01/2025 11/30/2029 BWC Unlimited with TAP 80464 AXON BODY - TAP WARRANTY - CAMERA 1 11/01/2025 11/30/2029 BWC Unlimited with TAP 80465 AXON BODY - TAP WARRANTY - MULTI BAY DOCK 6 11/01/2025 11/30/2029 Fleet 3 Basic 80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 22 11/01/2025 11/30/2029 Fleet 3 Basic 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 22 11/01/2025 11/30/2029 119

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Shipping Locations
Location Number Street City State Zip Country
1 141 Demeter St East Palo Alto CA 94303-1302 USA
Payment Details
Nov 2024
Invoice Plan Item Description Qty Subtotal Tax Total
Upfront Gap Coverage 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 132 $633.60 $0.00 $633.60 Upfront Gap Coverage 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 11 $2,200.00 $0.00 $2,200.00 Upfront Gap Coverage BasicLicense Basic License Bundle 1 $120.00 $0.00 $120.00 Upfront Gap Coverage ProLicense Pro License Bundle 11 $3,520.00 $0.00 $3,520.00 Year 1 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 43 $21,207.28 $0.00 $21,207.28 Year 1 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $0.00 $0.00 $0.00 Year 1 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $106.77 $0.00 $106.77 Year 1 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $0.00 $0.00 $0.00 Year 1 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $249.67 $0.00 $249.67 Year 1 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $0.00 $0.00 $0.00 Year 1 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $1,692.07 $0.00 $1,692.07 Year 1 50448 AXON INTERVIEW - EXT WARRANTY 4 $0.00 $0.00 $0.00 Year 1 50448 AXON INTERVIEW - EXT WARRANTY 4 $443.55 $0.00 $443.55 Year 1 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 21 $0.00 $0.00 $0.00 Year 1 73680 AXON RESPOND PLUS - LICENSE 43 $6,459.61 $0.00 $6,459.61 Year 1 80214 AXON EVIDENCE - STORAGE - FLEET 21 $0.00 $0.00 $0.00 Year 1 80397 AXON FLEET 2 - EXT WARRANTY - FLEET 2 KIT 21 $0.00 $0.00 $0.00 Year 1 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 43 $6,787.41 $0.00 $6,787.41 Year 1 87050 AXON EVIDENCE - FLEET VIEW XL LICENSE 21 $0.00 $0.00 $0.00 Year 1 BWCUwTAP BWC Unlimited with TAP 43 $29,970.43 $977.56 $30,947.99 Year 1 Fleet3B Fleet 3 Basic 22 $16,706.15 $77.01 $16,783.16 Year 1 H00001 AB4 Camera Bundle 43 $0.00 $0.00 $0.00
Year 1 H00002 AB4 Multi Bay Dock Bundle 6 $0.00 $0.00 $0.00 Year 1 ProLicense Pro License Bundle 4 $1,212.14 $0.00 $1,212.14 Year 1 R1900Kit CRADLEPOINT R1900 SINGLE MODEM KIT 22 $0.00 $0.00 $0.00 Invoice Upon Fulfillment 100552 TRANSFER CREDIT - GOODS 1 $16,632.00 $1,642.41 $18,274.41 Invoice Upon Fulfillment 100553 TRANSFER CREDIT - SOFTWARE AND SERVICES 1 $4,870.50 $0.00 $4,870.50 Total $112,811.18 $2,696.98 $115,508.16
Nov 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year 2 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 43 $40,183.58 $0.00 $40,183.58 Year 2 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $0.00 $0.00 $0.00 Year 2 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $202.30 $0.00 $202.30 Year 2 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $0.00 $0.00 $0.00 Year 2 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $473.08 $0.00 $473.08 Year 2 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $0.00 $0.00 $0.00 Year 2 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $3,206.14 $0.00 $3,206.14 Year 2 50448 AXON INTERVIEW - EXT WARRANTY 4 $0.00 $0.00 $0.00 Year 2 50448 AXON INTERVIEW - EXT WARRANTY 4 $840.43 $0.00 $840.43 120

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Nov 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year 2 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 21 $0.00 $0.00 $0.00 Year 2 73680 AXON RESPOND PLUS - LICENSE 43 $12,239.70 $0.00 $12,239.70 Year 2 80214 AXON EVIDENCE - STORAGE - FLEET 21 $0.00 $0.00 $0.00 Year 2 80397 AXON FLEET 2 - EXT WARRANTY - FLEET 2 KIT 21 $0.00 $0.00 $0.00 Year 2 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 43 $12,860.80 $0.00 $12,860.80 Year 2 87050 AXON EVIDENCE - FLEET VIEW XL LICENSE 21 $0.00 $0.00 $0.00 Year 2 BWCUwTAP BWC Unlimited with TAP 43 $56,788.08 $1,852.29 $58,640.37 Year 2 Fleet3B Fleet 3 Basic 22 $31,654.87 $145.91 $31,800.78 Year 2 H00001 AB4 Camera Bundle 43 $0.00 $0.00 $0.00
Year 2 H00002 AB4 Multi Bay Dock Bundle 6 $0.00 $0.00 $0.00 Year 2 ProLicense Pro License Bundle 4 $2,296.77 $0.00 $2,296.77 Year 2 R1900Kit CRADLEPOINT R1900 SINGLE MODEM KIT 22 $0.00 $0.00 $0.00 Total $160,745.75 $1,998.20 $162,743.95
Nov 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Year 3 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 43 $40,183.58 $0.00 $40,183.58 Year 3 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $0.00 $0.00 $0.00 Year 3 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $202.30 $0.00 $202.30 Year 3 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $0.00 $0.00 $0.00 Year 3 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $473.08 $0.00 $473.08 Year 3 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $0.00 $0.00 $0.00 Year 3 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $3,206.14 $0.00 $3,206.14 Year 3 50448 AXON INTERVIEW - EXT WARRANTY 4 $0.00 $0.00 $0.00 Year 3 50448 AXON INTERVIEW - EXT WARRANTY 4 $840.43 $0.00 $840.43 Year 3 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 21 $0.00 $0.00 $0.00 Year 3 73680 AXON RESPOND PLUS - LICENSE 43 $12,239.70 $0.00 $12,239.70 Year 3 80214 AXON EVIDENCE - STORAGE - FLEET 21 $0.00 $0.00 $0.00 Year 3 80397 AXON FLEET 2 - EXT WARRANTY - FLEET 2 KIT 21 $0.00 $0.00 $0.00 Year 3 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 43 $12,860.80 $0.00 $12,860.80 Year 3 87050 AXON EVIDENCE - FLEET VIEW XL LICENSE 21 $0.00 $0.00 $0.00 Year 3 BWCUwTAP BWC Unlimited with TAP 43 $56,788.08 $1,852.29 $58,640.37 Year 3 Fleet3B Fleet 3 Basic 22 $31,654.87 $145.91 $31,800.78 Year 3 H00001 AB4 Camera Bundle 43 $0.00 $0.00 $0.00
Year 3 H00002 AB4 Multi Bay Dock Bundle 6 $0.00 $0.00 $0.00 Year 3 ProLicense Pro License Bundle 4 $2,296.77 $0.00 $2,296.77 Year 3 R1900Kit CRADLEPOINT R1900 SINGLE MODEM KIT 22 $0.00 $0.00 $0.00 Total $160,745.75 $1,998.20 $162,743.95
Nov 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year 4 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 43 $40,183.58 $0.00 $40,183.58 Year 4 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $0.00 $0.00 $0.00 Year 4 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $202.30 $0.00 $202.30 Year 4 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $0.00 $0.00 $0.00 Year 4 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $473.08 $0.00 $473.08 Year 4 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $0.00 $0.00 $0.00 Year 4 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $3,206.14 $0.00 $3,206.14 Year 4 50448 AXON INTERVIEW - EXT WARRANTY 4 $0.00 $0.00 $0.00 Year 4 50448 AXON INTERVIEW - EXT WARRANTY 4 $840.43 $0.00 $840.43 Year 4 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 21 $0.00 $0.00 $0.00 121

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Nov 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year 4 73680 AXON RESPOND PLUS - LICENSE 43 $12,239.70 $0.00 $12,239.70 Year 4 80214 AXON EVIDENCE - STORAGE - FLEET 21 $0.00 $0.00 $0.00 Year 4 80397 AXON FLEET 2 - EXT WARRANTY - FLEET 2 KIT 21 $0.00 $0.00 $0.00 Year 4 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 43 $12,860.80 $0.00 $12,860.80 Year 4 87050 AXON EVIDENCE - FLEET VIEW XL LICENSE 21 $0.00 $0.00 $0.00 Year 4 BWCUwTAP BWC Unlimited with TAP 43 $56,788.08 $1,852.29 $58,640.37 Year 4 Fleet3B Fleet 3 Basic 22 $31,654.87 $145.91 $31,800.78 Year 4 H00001 AB4 Camera Bundle 43 $0.00 $0.00 $0.00
Year 4 H00002 AB4 Multi Bay Dock Bundle 6 $0.00 $0.00 $0.00 Year 4 ProLicense Pro License Bundle 4 $2,296.77 $0.00 $2,296.77 Year 4 R1900Kit CRADLEPOINT R1900 SINGLE MODEM KIT 22 $0.00 $0.00 $0.00 Total $160,745.75 $1,998.20 $162,743.95
Nov 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Year 5 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 43 $40,183.58 $0.00 $40,183.58 Year 5 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $0.00 $0.00 $0.00 Year 5 50039 AXON INTERVIEW - CLIENT SOFTWARE - MAINT. PER TOUCH PANEL 1 $202.30 $0.00 $202.30 Year 5 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $0.00 $0.00 $0.00 Year 5 50043 AXON INTERVIEW - STREAMING SERVER MAINTENANCE - PER SERVER 2 $473.08 $0.00 $473.08 Year 5 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $0.00 $0.00 $0.00 Year 5 50045 AXON EVIDENCE - STORAGE - INTERVIEW ROOM UNLIMITED 4 $3,206.14 $0.00 $3,206.14 Year 5 50448 AXON INTERVIEW - EXT WARRANTY 4 $0.00 $0.00 $0.00 Year 5 50448 AXON INTERVIEW - EXT WARRANTY 4 $840.43 $0.00 $840.43 Year 5 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 21 $0.00 $0.00 $0.00 Year 5 73680 AXON RESPOND PLUS - LICENSE 43 $12,239.70 $0.00 $12,239.70 Year 5 80214 AXON EVIDENCE - STORAGE - FLEET 21 $0.00 $0.00 $0.00 Year 5 80397 AXON FLEET 2 - EXT WARRANTY - FLEET 2 KIT 21 $0.00 $0.00 $0.00 Year 5 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 43 $12,860.80 $0.00 $12,860.80 Year 5 87050 AXON EVIDENCE - FLEET VIEW XL LICENSE 21 $0.00 $0.00 $0.00 Year 5 BWCUwTAP BWC Unlimited with TAP 43 $56,788.08 $1,852.30 $58,640.38 Year 5 Fleet3B Fleet 3 Basic 22 $31,654.87 $145.92 $31,800.79 Year 5 H00001 AB4 Camera Bundle 43 $0.00 $0.00 $0.00
Year 5 H00002 AB4 Multi Bay Dock Bundle 6 $0.00 $0.00 $0.00 Year 5 ProLicense Pro License Bundle 4 $2,296.77 $0.00 $2,296.77 Year 5 R1900Kit CRADLEPOINT R1900 SINGLE MODEM KIT 22 $0.00 $0.00 $0.00 Total $160,745.75 $1,998.22 $162,743.97
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Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.

Standard Terms and Conditions
Axon Enterprise Inc. Sales Terms and Conditions
Axon Master Services and Purchasing Agreement:

This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at https://www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below.

ACEIP:

The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.

Acceptance of Terms:

Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote. 123

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Exceptions to Standard Terms and Conditions
Agency has existing contract(s) originated via Quote(s):

Q-319819, Q-319897
Agency is terminating those contracts effective 11/15/2024 Any changes in this date will result in modification of the program value which may result in additional fees or credits due to or from Axon.

The parties agree that Axon is applying a Net Transfer Debit of $21,502.50 100% discounted body-worn camera and docking station hardware contained in this quote reflects a TAP replacement for hardware purchased under existing contract Q-319819 + Q-312672. All TAP obligations from this contract will be considered fulfilled upon execution of this quote. \s1\ \d1\
Signature Date Signed
6/26/2024
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Master Services and Purchasing Agreement
Version: 21
Release Date: April 1, 2024 Page 1 of 19
This Master Services and Purchasing Agreement ("Agreement") is between Axon Enterprise, Inc. ("Axon"), and the Customer listed below or, if no Customer is listed below, the customer on the Quote attached hereto ("Customer").

This Agreement is effective as of the later of the (a) last signature date on this Agreement or (b) date of acceptance of the Quote ("Effective Date"). Axon and Customer are each a "Party" and collectively "Parties". This Agreement governs Customers purchase and use of the Axon Devices and Services detailed in the Quote Appendix ("Quote"). It is the intent of the Parties that this Agreement will govern all subsequent purchases by Customer for the same Axon Devices and Services in the Quote, and all such subsequent quotes accepted by Customer shall be also incorporated into this Agreement by reference as a Quote. The Parties agree as follows:

1. Definitions.

1.1. "Axon Cloud Services" means Axons web services, including, but not limited to, Axon Evidence, Axon Records, Axon Dispatch, FUSUS services, and interactions between Axon Evidence and Axon Devices or Axon client software. Axon Cloud Service excludes third-party applications, hardware warranties, and my.evidence.com.

1.2. "Axon Device" means all hardware provided by Axon under this Agreement. Axon-manufactured Devices are a subset of Axon Devices.

1.3. "Quote" means an offer to sell and is only valid for devices and services on the offer at the specified prices.

Any inconsistent or supplemental terms within Customer’s purchase order in response to a Quote will be void.

Orders are subject to prior credit approval. Changes in the deployment estimated ship date may change charges in the Quote. Shipping dates are estimates only. Axon is not responsible for typographical errors in any Quote by Axon, and Axon reserves the right to cancel any orders resulting from such errors.

1.4. "Services" means all services provided by Axon under this Agreement, including software, Axon Cloud Services, and professional services.

2. Term. This Agreement begins on the Effective Date and continues until all subscriptions hereunder have expired or have been terminated ("Term").

2.1. All subscriptions including Axon Evidence, Axon Fleet, Officer Safety Plans, Technology Assurance Plans, and TASER 7 or TASER 10 plans begin on the date stated in the Quote. Each subscription term ends upon completion of the subscription stated in the Quote ("Subscription Term").

2.2. Upon completion of the Subscription Term, the Subscription Term will automatically renew for an additional 5 years ("Renewal Term"). For purchase of TASER 7 or TASER 10 as a standalone, Axon may increase pricing to its then-current list pricing for any Renewal Term. For all other purchases, Axon may increase pricing on all line items in the Quote by up to 3% at the beginning of each year of the Renewal Term. New devices and services may require additional terms. Axon will not authorize services until Axon receives a signed Quote or accepts a purchase order, whichever is first.

3. Payment. Axon invoices for Axon Devices upon shipment, or on the date specified within the invoicing plan in the Quote. Payment is due net 30 days from the invoice date. Axon invoices for Axon Cloud Services on an upfront yearly basis prior to the beginning of the Subscription Term and upon the anniversary of the Subscription Term Payment obligations are non-cancelable. Unless otherwise prohibited by law, Customer will pay interest on all past-due sums at the lower of one-and-a-half percent (1.5%) per month or the highest rate allowed by law. Customer will pay invoices without setoff, deduction, or withholding. If Axon sends a past due account to collections, Customer is responsible for collection and attorneysfees.

4. Taxes. Customer is responsible for sales and other taxes associated with the order unless Customer provides Axon a valid tax exemption certificate.

5. Shipping. Axon may make partial shipments and ship Axon Devices from multiple locations. All shipments are EXW (Incoterms 2020) via common carrier. Title and risk of loss pass to Customer upon Axons delivery to the common carrier. Customer is responsible for any shipping charges in the Quote.

6. Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by state or federal law.

7. Warranty.

7.1. Limited Warranty. Axon warrants that Axon-manufactured Devices are free from defects in workmanship and materials for one (1) year from the date of Customer’s receipt, except Signal Sidearm and Axon-manufactured accessories, which Axon warrants for thirty (30) months and ninety (90) days, respectively, from the date of Customer’s receipt. Used conducted energy weapon ("CEW") cartridges are deemed to have operated properly. Extended warranties run from the expiration of the one- (1-) year hardware warranty through the extended warranty term purchased.
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7.2. Disclaimer. All software and Axon Cloud Services are provided "AS IS," without any warranty of any kind, either express or implied, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement. Axon Devices and Services that are not manufactured, published or performed by Axon ("Third-Party Products") are not covered by Axon’s warranty and are only subject to the warranties of the third-party provider or manufacturer.

7.3. Claims. If Axon receives a valid warranty claim for an Axon-manufactured Device during the warranty term, Axon’s sole responsibility is to repair or replace the Axon-manufactured Device with the same or like Axonmanufactured Device, at Axon’s option. A replacement Axon-manufactured Device will be new or like new.

Axon will warrant the replacement Axon-manufactured Device for the longer of (a) the remaining warranty of the original Axon-manufactured Device or (b) ninety (90) days from the date of repair or replacement.

7.3.1. If Customer exchanges an Axon Device or part, the replacement item becomes Customer’s property, and the replaced item becomes Axon’s property. Before delivering an Axon-manufactured Device for service, Customer must upload Axon-manufactured Device data to Axon Evidence or download it and retain a copy. Axon is not responsible for any loss of software, data, or other information contained in storage media or any part of the Axon-manufactured Device sent to Axon for service.

7.4. Spare Axon Devices. At Axon's reasonable discretion, Axon may provide Customer a predetermined number of spare Axon Devices as detailed in the Quote ("Spare Axon Devices"). Spare Axon Devices are intended to replace broken or non-functioning units while Customer submits the broken or non-functioning units, through Axon’s warranty return process. Axon will repair or replace the unit with a replacement Axon Device. Title and risk of loss for all Spare Axon Devices shall pass to Customer in accordance with shipping terms under Section

5. Axon assumes no liability or obligation in the event Customer does not utilize Spare Axon Devices for the intended purpose.

7.5. Limitations. Axon’s warranty excludes damage related to: (a) failure to follow Axon Device use instructions; (b) Axon Devices used with equipment not manufactured or recommended by Axon; (c) abuse, misuse, or intentional damage to Axon Device; (d) force majeure; (e) Axon Devices repaired or modified by persons other than Axon without Axon’s written permission; or (f) Axon Devices with a defaced or removed serial number.

Axon’s warranty will be void if Customer resells Axon Devices.

7.5.1. To the extent permitted by law, the above warranties and remedies are exclusive. Axon disclaims all other warranties, remedies, and conditions, whether oral, written, statutory, or implied. If statutory or implied warranties cannot be lawfully disclaimed, then such warranties are limited to the duration of the warranty described above and by the provisions in this Agreement. Customer confirms and agrees that, in deciding whether to sign this Agreement, it has not relied on any statement or representation by Axon or anyone acting on behalf of Axon related to the subject matter of this Agreement that is not in this Agreement.

7.5.2. Axons cumulative liability to any party for any loss or damage resulting from any claim, demand, or action arising out of or relating to this Agreement will not exceed the purchase price paid to Axon for the Axon Device, or if for Services, the amount paid for such Services over the twelve (12) months preceding the claim. Neither Party will be liable for special, indirect, incidental, punitive or consequential damages, however caused, whether for breach of warranty or contract, negligence, strict liability, tort or any other legal theory.

7.6. Online Support Platforms. Use of Axon's online support platforms (e.g., Axon Academy and MyAxon) is governed by the Axon Online Support Platforms Terms of Use Appendix available at www.axon.com/salesterms-and-conditions.

7.7. Third-Party Software and Services. Use of software or services other than those provided by Axon is governed by the terms, if any, entered into between Customer and the respective third-party provider, including, without limitation, the terms applicable to such software or services located at www.axon.com/sales-termsand-conditions, if any.

7.8. Axon Aid. Upon mutual agreement between Axon and Customer, Axon may provide certain products and services to Customer, as a charitable donation under the Axon Aid program. In such event, Customer expressly waives and releases any and all claims, now known or hereafter known, against Axon and its officers, directors, employees, agents, contractors, affiliates, successors, and assigns (collectively, "Releasees"), including but not limited to, on account of injury, death, property damage, or loss of data, arising out of or attributable to the Axon Aid program whether arising out of the negligence of any Releasees or otherwise. Customer agrees not to make or bring any such claim against any Releasee, and forever release and discharge all Releasees from liability under such claims. Customer expressly allows Axon to publicly announce its participation in Axon Aid and use its name in marketing materials. Axon may terminate the Axon Aid program without cause immediately upon notice to the Customer.
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8. Statement of Work. Certain Axon Devices and Services, including Axon Interview Room, Axon Channel Services, and Axon Fleet, may require a Statement of Work that details Axons Service deliverables ("SOW"). In the event Axon provides an SOW to Customer, Axon is only responsible for the performance of Services described in the SOW.

Additional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. The SOW is incorporated into this Agreement by reference.

9. Axon Device Warnings. See www.axon.com/legal for the most current Axon Device warnings.

10. Design Changes. Axon may make design changes to any Axon Device or Service without notifying Customer or making the same change to Axon Devices and Services previously purchased by Customer.

11. Bundled Offerings. Some offerings in bundled offerings may not be generally available at the time of Customer s purchase. Axon will not provide a refund, credit, or additional discount beyond what is in the Quote due to a delay of availability or Customer s election not to utilize any portion of an Axon bundle.

12. Insurance. Axon will maintain General Liability, WorkersCompensation, and Automobile Liability insurance. Upon request, Axon will supply certificates of insurance.

13. IP Rights. Axon owns and reserves all right, title, and interest in Axon-manufactured Devices and Services and suggestions to Axon, including all related intellectual property rights. Customer will not cause any Axon proprietary rights to be violated.

14. IP Indemnification. Axon will indemnify Customer against all claims, losses, and reasonable expenses from any third-party claim alleging that the use of Axon-manufactured Devices or Services infringes or misappropriates the third-partys intellectual property rights. Customer must promptly provide Axon with written notice of such claim, tender to Axon the defense or settlement of such claim at Axons expense and cooperate fully with Axon in the defense or settlement of such claim. Axons IP indemnification obligations do not apply to claims based on (a) modification of Axon-manufactured Devices or Services by Customer or a third-party not approved by Axon; (b) use of Axonmanufactured Devices and Services in combination with hardware or services not approved by Axon; (c) use of Axon Devices and Services other than as permitted in this Agreement; or (d) use of Axon software that is not the most current release provided by Axon.

15. Customer Responsibilities. Customer is responsible for (a) Customers use of Axon Devices; (b) breach of this Agreement or violation of applicable law by Customer or a Customer end user; (c) disputes between Customer and a third-party over Customers use of Axon Devices; (d) ensuring Axon Devices are destroyed and disposed of securely and sustainably at Customer’s cost; and (e) any regulatory violations or fines, as a result of improper destruction or disposal of Axon Devices.

16. Termination.

16.1. For Breach. A Party may terminate this Agreement for cause if it provides thirty (30) days written notice of the breach to the other Party, and the breach remains uncured at the end of thirty (30) days. If Customer terminates this Agreement due to Axons uncured breach, Axon will refund prepaid amounts on a prorated basis based on the effective date of termination.

16.2. By Customer. If sufficient funds are not appropriated or otherwise legally available to pay the fees, Customer may terminate this Agreement. Customer will deliver notice of termination under this section as soon as reasonably practicable.

16.3. Effect of Termination. Upon termination of this Agreement, Customer rights immediately terminate. Customer remains responsible for all fees incurred before the effective date of termination. If Customer purchases Axon Devices for less than the manufacturers suggested retail price ("MSRP") and this Agreement terminates before the end of the Term, Axon will invoice Customer the difference between the MSRP for Axon Devices received, including any Spare Axon Devices, and amounts paid towards those Axon Devices.Only if terminating for nonappropriation, Customer may return Axon Devices to Axon within thirty (30) days of termination. MSRP is the standalone price of the individual Axon Device at the time of sale. For bundled Axon Devices, MSRP is the standalone price of all individual components.

17. Confidentiality. "Confidential Information" means nonpublic information designated as confidential or, given the nature of the information or circumstances surrounding disclosure, should reasonably be understood to be confidential. Each Party will take reasonable measures to avoid disclosure, dissemination, or unauthorized use of the other Partys Confidential Information. Unless required by law, neither Party will disclose the other Partys Confidential Information during the Term and for five (5) years thereafter. To the extent permissible by law, Axon pricing is Confidential Information and competition sensitive. If Customer receives a public records request to disclose Axon Confidential Information, to the extent allowed by law, Customer will provide notice to Axon before disclosure. Axon may publicly announce information related to this Agreement. 128
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18. General.

18.1. Force Majeure. Neither Party will be liable for any delay or failure to perform due to a cause beyond a Party s reasonable control.

18.2. Independent Contractors. The Parties are independent contractors. Neither Party has the authority to bind the other. This Agreement does not create a partnership, franchise, joint venture, Customer, fiduciary, or employment relationship between the Parties.

18.3. Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement.

18.4. Non-Discrimination. Neither Party nor its employees will discriminate against any person based on race; religion; creed; color; sex; gender identity and expression; pregnancy; childbirth; breastfeeding; medical conditions related to pregnancy, childbirth, or breastfeeding; sexual orientation; marital status; age; national origin; ancestry; genetic information; disability; veteran status; or any class protected by local, state, or federal law.

18.5. Compliance with Laws. Each Party will comply with all applicable federal, state, and local laws, including without limitation, import and export control laws and regulations as well as firearm regulations and the Gun Control Act of 1968.

18.6. Assignment. Neither Party may assign this Agreement without the other Partys prior written consent. Axon may assign this Agreement, its rights, or obligations without consent: (a) to an affiliate or subsidiary; or (b) for purposes of financing, merger, acquisition, corporate reorganization, or sale of all or substantially all its assets.

This Agreement is binding upon the Parties respective successors and assigns.

18.7. Waiver. No waiver or delay by either Party in exercising any right under this Agreement constitutes a waiver of that right.

18.8. Severability. If a court of competent jurisdiction holds any portion of this Agreement invalid or unenforceable, the remaining portions of this Agreement will remain in effect.

18.9. Survival. The following sections will survive termination: Payment, Warranty, Axon Device Warnings, Indemnification, IP Rights, Customer Responsibilities and any other Sections detailed in the survival sections of the Appendices.

18.10.Governing Law. The laws of the country, state, province, or municipality where Customer is physically located, without reference to conflict of law rules, govern this Agreement and any dispute arising from it. The United Nations Convention for the International Sale of Goods does not apply to this Agreement.

18.11.Notices. All notices must be in English. Notices posted on Customers Axon Evidence site are effective upon posting. Notices by email are effective on the sent date of the email. Notices by personal delivery are effective immediately. Notices to Customer shall be provided to the address on file with Axon. Notices to Axon shall be provided to Axon Enterprise, Inc. Attn: Legal, 17800 North 85th Street, Scottsdale, Arizona 85255 with a copy to [email protected].

18.12 Entire Agreement. This Agreement, the Appendices, including any applicable Appendices not attached herein for the products and services purchased, which are incorporated by reference and located in the Master Purchasing and Services Agreement located at https://www.axon.com/sales-terms-and-conditions,Quote and any SOW(s), represents the entire agreement between the Parties. This Agreement supersedes all prior agreements or understandings, whether written or verbal, regarding the subject matter of this Agreement. This Agreement may only be modified or amended in a writing signed by the Parties.

Each Party, by and through its respective representative authorized to execute this Agreement, has duly executed and delivered this Agreement as of the date of signature.

AXON: CUSTOMER:

Axon Enterprise, Inc.

Signature: Signature:

Name: Name:

Title: Title:

Date: Date:
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Axon Cloud Services Terms of Use Appendix

1. Definitions.
a. "Customer Content" is data uploaded into, ingested by, or created in Axon Cloud Services within Customer’s tenant, including media or multimedia uploaded into Axon Cloud Services by Customer.

Customer Content includes Evidence but excludes Non-Content Data. b. "Evidence" is media or multimedia uploaded into Axon Evidence as 'evidence' by Customer. Evidence is a subset of Customer Content.
c. "Non-Content Data" is data, configuration, and usage information about Customer’s Axon Cloud Services tenant, Axon Devices and client software, and users that is transmitted or generated when using Axon Devices. Non-Content Data includes data about users captured during account management and customer support activities. Non-Content Data does not include Customer Content. d. "Personal Data" means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person. e. "Provided Data" means de-identified, de-personalized, data derived from Customer's TASER energy weapon deployment reports, related TASER energy weapon logs, body-worn camera footage, and incident reports.
f. "Transformed Data" means the Provided Data used for the purpose of quantitative evaluation of the performance and effectiveness of TASER energy weapons in the field across a variety of circumstances.

2. Access. Upon Axon granting Customer a subscription to Axon Cloud Services, Customer may access and use Axon Cloud Services to store and manage Customer Content. Customer may not exceed more end users than the Quote specifies. Axon Air requires an Axon Evidence subscription for each drone operator. For Axon Evidence Lite, Customer may access and use Axon Evidence only to store and manage TASER CEW and TASER CAM data ("TASER Data"). Customer may not upload non-TASER Data to Axon Evidence Lite.

3. Customer Owns Customer Content. Customer controls and owns all right, title, and interest in Customer Content. Except as outlined herein, Axon obtains no interest in Customer Content, and Customer Content is not Axon’s business records. Customer is solely responsible for uploading, sharing, managing, and deleting Customer Content. Axon will only have access to Customer Content for the limited purposes set forth herein.

Customer agrees to allow Axon access to Customer Content to (a) perform troubleshooting, maintenance, or diagnostic screenings; and (b) enforce this Agreement or policies governing use of the Axon products.

4. Security. Axon will implement commercially reasonable and appropriate measures to secure Customer Content against accidental or unlawful loss, access or disclosure. Axon will maintain a comprehensive information security program to protect Axon Cloud Services and Customer Content including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of uploaded digital evidence; security education; and data protection. Axon agrees to the Federal Bureau of Investigation Criminal Justice Information Services Security Addendum for its digital evidence or records management systems.

5. Customer Responsibilities. Customer is responsible for (a) ensuring Customer owns Customer Content; (b) ensuring no Customer Content or Customer end user’s use of Customer Content or Axon Cloud Services violates this Agreement or applicable laws; and (c) maintaining necessary computer equipment and Internet connections for use of Axon Cloud Services. If Customer becomes aware of any violation of this Agreement by an end user, Customer will immediately terminate that end user’s access to Axon Cloud Services. a. Customer will also maintain the security of end usernames and passwords and security and access by end users to Customer Content. Customer is responsible for ensuring the configuration and utilization of Axon Cloud Services meet applicable Customer regulation and standards. Customer may not sell, transfer, or sublicense access to any other entity or person. Customer shall contact Axon immediately if an unauthorized party may be using Customer’s account or Customer Content, or if account information is lost or stolen.
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b. To the extent Customer uses the Axon Cloud Services to interact with YouTube®, such use may be governed by the YouTube Terms of Service, available at
https://www.youtube.com/static?template=terms.

6. Privacy. Customer’s use of Axon Cloud Services is subject to the Axon Cloud Services Privacy Policy, a current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy. Customer agrees to allow Axon access to Non-Content Data from Customer to (a) perform troubleshooting, maintenance, or diagnostic screenings; (b) provide, develop, improve, and support current and future Axon products and related services; and (c) enforce this Agreement or policies governing the use of Axon products.

7. Axon Body Wi-Fi Positioning. Axon Body cameras may offer a feature to enhance location services where GPS/GNSS signals may not be available, for instance, within buildings or underground. Customer administrators can manage their choice to use this service within the administrative features of Axon Cloud Services. If Customer chooses to use this service, Axon must also enable the usage of the feature for Customer’s Axon Cloud Services tenant. Customer will not see this option with Axon Cloud Services unless Axon has enabled Wi-Fi Positioning for Customer’s Axon Cloud Services tenant. When Wi-Fi Positioning is enabled by both Axon and Customer, Non-Content and Personal Data will be sent to Skyhook Holdings, Inc. ("Skyhook") to facilitate the Wi-Fi Positioning functionality. Data controlled by Skyhook is outside the scope of the Axon Cloud Services Privacy Policy and is subject to the Skyhook Services Privacy Policy.

8. Storage. For Axon Unlimited Device Storage subscriptions, Customer may store unlimited data in Customer's Axon Evidence account only if data originates from Axon Capture or the applicable Axon Device.

Axon may charge Customer additional fees for exceeding purchased storage amounts. Axon may place Customer Content that Customer has not viewed or accessed for six (6) months into archival storage. Customer Content in archival storage will not have immediate availability and may take up to twenty-four (24) hours to access.

9. Third-Party Unlimited Storage. For Third-Party Unlimited Storage the following restrictions apply: (i) it may only be used in conjunction with a valid Axon Evidence user license; (ii) is limited to data of the law enforcement Customer that purchased the Third-Party Unlimited Storage and the Axon Evidence end user or Customer is prohibited from storing data for other law enforcement agencies; and (iii) Customer may only upload and store data that is directly related to (1) the investigation of, or the prosecution of a crime, (2) common law enforcement activities, or (3) any Customer Content created by Axon Devices or Axon Evidence.

10. Location of Storage. Axon may transfer Customer Content to third-party subcontractors for storage. Axon will determine the locations of data centers for storage of Customer Content. If Customer is located in the United States, Canada, or Australia, Axon will ensure all Customer Content stored in Axon Cloud Services remains in the country where Customer is located. Ownership of Customer Content remains with Customer.

11. Suspension. Axon may temporarily suspend Customer’s or any end user’s right to access or use any portion or all of Axon Cloud Services immediately upon notice, if Customer or end user’s use of or registration for Axon Cloud Services may (a) pose a security risk to Axon Cloud Services or any third-party; (b) adversely impact Axon Cloud Services, the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any thirdparty to liability; or (d) be fraudulent. Customer remains responsible for all fees incurred through suspension.

Axon will not delete Customer Content because of suspension, except as specified in this Agreement.

12. Axon Cloud Services Warranty. Axon disclaims any warranties or responsibility for data corruption or errors before Customer uploads data to Axon Cloud Services.

13. TASER Data Science Program. Axon will provide a quantitative evaluation on the performance and effectiveness of TASER energy weapons in the field across a variety of circumstances.

14. If Customer purchases the TASER Data Science Program, Customer grants Axon, its affiliates, and assignees an irrevocable, perpetual, fully paid, royalty-free, and worldwide right and license to use Provided Data solely for the purposes of this Agreement and to create Transformed Data. Customer shall own all rights and title to Provided Data. Axon shall own all rights and title to Transformed Data and any derivatives of Transformed Data.

15. Axon grants to Customer an irrevocable, perpetual, fully paid, royalty-free, license to use to TASER Data Science report provided to Customer for its own internal purposes. The Data Science report is provided “as is” and without any warranty of any kind.
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16. In the event Customer seeks Axon’s deletion of Provided Data, it may submit a request to [email protected].

Where reasonably capable of doing so, Axon will implement the request but at a minimum will not continue to collect Provided Data from Customer.

17. Axon Records. Axon Records is the software-as-a-service product that is generally available at the time Customer purchases an OSP 7 or OSP 10 bundle. During Customer’s Axon Records Subscription Term, if any, Customer will be entitled to receive Axon’s Update and Upgrade releases on an if-and-when available basis. c. The Axon Records Subscription Term will end upon the completion of the Axon Records Subscription as documented in the Quote, or if purchased as part of an OSP 7 or OSP 10 bundle, upon completion of the OSP 7 or OSP 10 Term ("Axon Records Subscription") d. An "Update" is a generally available release of Axon Records that Axon makes available from time to time. An "Upgrade" includes (i) new versions of Axon Records that enhance features and functionality, as solely determined by Axon; and/or (ii) new versions of Axon Records that provide additional features or perform additional functions. Upgrades exclude new products that Axon introduces and markets as distinct products or applications.
e. New or additional Axon products and applications, as well as any Axon professional services needed to configure Axon Records, are not included. If Customer purchases Axon Records as part of a bundled offering, the Axon Record subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Records to Customer.
f. Users of Axon Records at the Customer may upload files to entities (incidents, reports, cases, etc) in Axon Records with no limit to the number of files and amount of storage. Notwithstanding the foregoing, Axon may limit usage should the Customer exceed an average rate of one-hundred (100) GB per user per year of uploaded files. Axon will not bill for overages.

18. Axon Cloud Services Restrictions. Customer and Customer end users (including employees, contractors, agents, officers, volunteers, and directors), may not, or may not attempt to:
g. copy, modify, tamper with, repair, or create derivative works of any part of Axon Cloud Services; h. reverse engineer, disassemble, or decompile Axon Cloud Services or apply any process to derive any source code included in Axon Cloud Services, or allow others to do the same; i. access or use Axon Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas;
j. use Axon Cloud Services as a service bureau, or as part of a Customer infrastructure as a service; k. use trade secret information contained in Axon Cloud Services, except as expressly permitted in this Agreement;
l. access Axon Cloud Services to build a competitive device or service or copy any features, functions, or graphics of Axon Cloud Services;
m. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within Axon Cloud Services; or n. use Axon Cloud Services to store or transmit infringing, libelous, or other unlawful or tortious material; material in violation of third-party privacy rights; or malicious code.

19. Axon Narrative. AI-Assisted Report Writing feature. Axon may impose usage restrictions if a single user generates more than one hundred (100) reports per month for two or more consecutive months.

20. After Termination. Axon will not delete Customer Content for ninety (90) days following termination. There will be no functionality of Axon Cloud Services during these ninety (90) days other than the ability to retrieve Customer Content. Customer will not incur additional fees if Customer downloads Customer Content from Axon Cloud Services during this time. Axon has no obligation to maintain or provide Customer Content after these ninety (90) days and will thereafter, unless legally prohibited, delete all Customer Content. Upon request, Axon will provide written proof that Axon successfully deleted and fully removed all Customer Content from Axon Cloud Services.
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21. Post-Termination Assistance. Axon will provide Customer with the same post-termination data retrieval assistance that Axon generally makes available to all customers. Requests for Axon to provide additional assistance in downloading or transferring Customer Content, including requests for Axon’s data egress service, will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external system.

22. U.S. Government Rights. If Customer is a U.S. Federal department or using Axon Cloud Services on behalf of a U.S. Federal department, Axon Cloud Services is provided as a "commercial item," "commercial computer software," "commercial computer software documentation," and "technical data", as defined in the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement. If Customer is using Axon Cloud Services on behalf of the U.S. Government and these terms fail to meet the U.S. Government’s needs or are inconsistent in any respect with federal law, Customer will immediately discontinue use of Axon Cloud Services.

23. Survival. Upon any termination of this Agreement, the following sections in this Appendix will survive: Customer Owns Customer Content, Privacy, Storage, Axon Cloud Services Warranty, Customer Responsibilities and Axon Cloud Services Restrictions.
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Axon Customer Experience Improvement Program Appendix

1. Axon Customer Experience Improvement Program (ACEIP). The ACEIP is designed to accelerate Axon’s development of technology, such as building and supporting automated features, to ultimately increase safety within communities and drive efficiency in public safety. To this end, subject to the limitations on Axon as described below, Axon, where allowed by law, may make limited use of Customer Content from all of its customers to provide, develop, improve, and support current and future Axon products (collectively, "ACEIP Purposes"). However, at all times, Axon will comply with its obligations pursuant to the Axon Cloud Services Terms of Use Appendix to maintain a comprehensive data security program (including compliance with the CJIS Security Policy for Criminal Justice Information), privacy program, and data governance policy, including high industry standards of de-identifying Personal Data, to enforce its security and privacy obligations for the ACEIP. ACEIP has 2 tiers of participation, Tier 1 and Tier 2. By default, Customer will be a participant in ACEIP Tier 1. If Customer does not want to participate in ACEIP Tier 1, Customer can revoke its consent at any time. If Customer wants to participate in Tier 2, as detailed below, Customer can check the ACEIP Tier 2 box below. If Customer does not want to participate in ACEIP Tier 2, Customer should leave box unchecked. At any time, Customer may revoke its consent to ACEIP Tier 1, Tier 2, or both Tiers.

2. ACEIP Tier 1.

2.1. When Axon uses Customer Content for the ACEIP Purposes, Axon will extract from Customer Content and may store separately copies of certain segments or elements of the Customer Content (collectively, "ACEIP Content"). When extracting ACEIP Content, Axon will use commercially reasonable efforts to aggregate, transform or de-identify Customer Content so that the extracted ACEIP Content is no longer reasonably capable of being associated with, or could reasonably be linked directly or indirectly to a particular individual ("Privacy Preserving Technique(s)"). For illustrative purposes, some examples are described in footnote 11 .

For clarity, ACEIP Content will still be linked indirectly, with an attribution, to the Customer from which it was extracted. This attribution will be stored separately from the data itself, but is necessary for and will be solely used to enable Axon to identify and delete all ACEIP Content upon Customer request. Once de-identified, ACEIP Content may then be further modified, analyzed, and used to create derivative works. At any time, Customer may revoke the consent granted herein to Axon to access and use Customer Content for ACEIP Purposes. Within 30 days of receiving the Customers request, Axon will no longer access or use Customer Content for ACEIP Purposes and will delete any and all ACEIP Content. Axon will also delete any derivative works which may reasonably be capable of being associated with, or could reasonably be linked directly or indirectly to Customer. In addition, if Axon uses Customer Content for the ACEIP Purposes, upon request, Axon will make available to Customer a list of the specific type of Customer Content being used to generate ACEIP Content, the purpose of such use, and the retention, privacy preserving extraction technique, and relevant data protection practices applicable to the Customer Content or ACEIP Content ("Use Case"). From time to time, Axon may develop and deploy new Use Cases. At least 30 days prior to authorizing the deployment of any new Use Case, Axon will provide Customer notice (by updating the list of Use Case at https://www.axon.com/aceip and providing Customer with a mechanism to obtain notice of that update or another commercially reasonable method to Customer designated contact) ("New Use Case").

2.2. Expiration of ACEIP Tier 1. Customer consent granted herein will expire upon termination of the Agreement.

In accordance with section 1.1.1, within 30 days of receiving the Customers request, Axon will no longer access or use Customer Content for ACEIP Purposes and will delete ACEIP Content. Axon will also delete any derivative works which may reasonably be capable of being associated with, or could reasonably be linked directly or indirectly to, Customer.

3. ACEIP Tier 2. In addition to ACEIP Tier 1, if Customer wants to help further improve Axons services, Customer may choose to participate in Tier 2 of the ACEIP. ACEIP Tier 2 grants Axon certain additional rights to use Customer

1 For example; (a) when extracting specific text to improve automated transcription capabilities, text that could be used to directly identify a particular individual would not be extracted, and extracted text would be disassociated from identifying metadata of any speakers, and the extracted text would be split into individual words and aggregated with other data sources (including publicly available data) to remove any reasonable ability to link any specific text directly or indirectly back to a particular individual; (b) when extracting license plate data to improve Automated License Plate Recognition (ALPR) capabilities, individual license plate characters would be extracted and disassociated from each other so a complete plate could not be reconstituted, and all association to other elements of the source video, such as the vehicle, location, time, and the surrounding environment would also be removed; (c) when extracting audio of potential acoustic events (such as glass breaking or gun shots), very short segments (<1 second) of audio that only contains the likely acoustic events would be extracted and all human utterances would be removed. 135
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Content, in addition to those set forth in Tier 1 above, without the guaranteed deployment of a Privacy Preserving Technique to enable product development, improvement, and support that cannot be accomplished with aggregated, transformed, or de-identified data.
☐ Check this box if Customer wants to help further improve Axons services by participating in ACEIP Tier 2 in addition to Tier 1. Axon will not enroll Customer into ACEIP Tier 2 until Axon and Customer agree to terms in writing providing for such participation in ACEIP Tier 2.
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Technology Assurance Plan Appendix
If Technology Assurance Plan ("TAP") or a bundle including TAP is on the Quote, this appendix applies.

1. TAP Warranty. The TAP warranty is an extended warranty that starts at the end of the one- (1-) year hardware limited warranty.

2. Officer Safety Plan. If Customer purchases an Officer Safety Plan ("OSP"), Customer will receive the deliverables detailed in the Quote. Customer must accept delivery of the TASER CEW and accessories as soon as available from Axon.

3. OSP 7 or OSP 10 Term. OSP 7 or OSP 10 begins on the date specified in the Quote ("OSP Term").

4. TAP BWC Upgrade. If Customer has no outstanding payment obligations and purchased TAP, Axon will provide Customer a new Axon body-worn camera ("BWC Upgrade") as scheduled in the Quote. If Customer purchased TAP, Axon will provide a BWC Upgrade that is the same or like Axon Device, at Axons option. Axon makes no guarantee the BWC Upgrade will utilize the same accessories or Axon Dock.

5. TAP Dock Upgrade. If Customer has no outstanding payment obligations and purchased TAP, Axon will provide Customer a new Axon Dock as scheduled in the Quote ("Dock Upgrade"). Accessories associated with any Dock Upgrades are subject to change at Axon discretion. Dock Upgrades will only include a new Axon Dock bay configuration unless a new Axon Dock core is required for BWC compatibility. If Customer originally purchased a single-bay Axon Dock, the Dock Upgrade will be a single-bay Axon Dock model that is the same or like Axon Device, at Axons option. If Customer originally purchased a multi-bay Axon Dock, the Dock Upgrade will be a multi-bay Axon Dock that is the same or like Axon Device, at Axons option.

6. Upgrade Delay. Axon may ship the BWC and Dock Upgrades as scheduled in the Quote without prior confirmation from Customer unless the Parties agree in writing otherwise at least ninety (90) days in advance. Axon may ship the final BWC and Dock Upgrade as scheduled in the Quote sixty (60) days before the end of the Subscription Term without prior confirmation from Customer.

7. Upgrade Change. If Customer wants to upgrade Axon Device models from the current Axon Device to an upgraded Axon Device, Customer must pay the price difference between the MSRP for the current Axon Device and the MSRP for the upgraded Axon Device. If the model Customer desires has an MSRP less than the MSRP of the offered BWC Upgrade or Dock Upgrade, Axon will not provide a refund. The MSRP is the MSRP in effect at the time of the upgrade.

8. Return of Original Axon Device. Within thirty (30) days of receiving a BWC or Dock Upgrade, Customer must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon including serial numbers for the destroyed Axon Devices. If Customer does not return or destroy the Axon Devices, Axon will deactivate the serial numbers for the Axon Devices received by Customer.

9. Termination. If Customer s payment for TAP, OSP, or Axon Evidence is more than thirty (30) days past due, Axon may terminate TAP or OSP. Once TAP or OSP terminates for any reason:

9.1. TAP and OSP coverage terminate as of the date of termination and no refunds will be given.

9.2. Axon will not and has no obligation to provide the Upgrade Models.

9.3. Customer must make any missed payments due to the termination before Customer may purchase any future TAP or OSP.
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Axon Fleet Appendix
If Axon Fleet 2, Axon Fleet 3, or any future generation of Axon Fleet (collectively, Axon Fleet) is included on the Quote, this Appendix applies.

1. Customer Responsibilities.

1.1. Customer must ensure its infrastructure and vehicles adhere to the minimum requirements to operate Axon Fleet as established by Axon during the qualifier call and on-site assessment at Customer and in any technical qualifying questions. If Customer s representations are inaccurate, the Quote is subject to change.

1.2. Customer is responsible for providing a suitable work area for Axon or Axon third-party providers to install Axon Fleet systems into Customer vehicles. Customer is responsible for making available all vehicles for which installation services were purchased, during the agreed upon onsite installation dates, Failure to make vehicles available may require an equitable adjustment in fees or schedule.

2. Cradlepoint. If Customer purchases Cradlepoint Enterprise Cloud Manager, Customer will comply with Cradlepoint s end user license agreement. The term of the Cradlepoint license may differ from the Axon Evidence Subscription. If Customer requires Cradlepoint support, Customer will contact Cradlepoint directly.

3. Third-party Installer. Axon will not be liable for the failure of Axon Fleet hardware to operate per specifications if such failure results from installation not performed by, or as directed by Axon.

4. Wireless Offload Server.

4.1. License Grant. Axon grants Customer a non-exclusive, royalty-free, worldwide, perpetual license to use Wireless Offload Server ("WOS"). "Use" means storing, loading, installing, or executing WOS solely for data communication with Axon Devices for the number of licenses purchased. The WOS term begins upon the start of the Axon Evidence Subscription.

4.2. Restrictions. Customer may not: (a) modify, alter, tamper with, repair, or create derivative works of WOS; (b) reverse engineer, disassemble, or decompile WOS, apply any process to derive the source code of WOS, or allow others to do so; (c) access or use WOS to avoid incurring fees or exceeding usage limits; (d) copy WOS in whole or part; (e) use trade secret information contained in WOS; (f) resell, rent, loan or sublicense WOS; (g) access WOS to build a competitive device or service or copy any features, functions or graphics of WOS; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon s licensors on or within WOS.

4.3. Updates. If Customer purchases WOS maintenance, Axon will make updates and error corrections to WOS ("WOS Updates") available electronically via the Internet or media as determined by Axon. Customer is responsible for establishing and maintaining adequate Internet access to receive WOS Updates and maintaining computer equipment necessary for use of WOS. The Quote will detail the maintenance term.

4.4. WOS Support. Upon request by Axon, Customer will provide Axon with access to Customer s store and forward servers solely for troubleshooting and maintenance.

5. Axon Vehicle Software.

5.1. License Grant. Axon grants Customer a non-exclusive, royalty-free, worldwide, perpetual license to use ViewXL or Dashboard (collectively, "Axon Vehicle Software".) "Use" means storing, loading, installing, or executing Axon Vehicle Software solely for data communication with Axon Devices. The Axon Vehicle Software term begins upon the start of the Axon Evidence Subscription.

5.2. Restrictions. Customer may not: (a) modify, alter, tamper with, repair, or create derivative works of Axon Vehicle Software; (b) reverse engineer, disassemble, or decompile Axon Vehicle Software, apply any process to derive the source code of Axon Vehicle Software, or allow others to do so; (c) access or use Axon Vehicle Software to avoid incurring fees or exceeding usage limits; (d) copy Axon Vehicle Software in whole or part; (e) use trade secret information contained in Axon Vehicle Software; (f) resell, rent, loan or sublicense Axon Vehicle Software; (g) access Axon Vehicle Software to build a competitive device or service or copy any features, functions or graphics of Axon Vehicle Software; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Axon Vehicle Software.
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6. Acceptance Checklist. If Axon provides services to Customer pursuant to any statement of work in connection with Axon Fleet, within seven (7) days of the date on which Customer retrieves Customer's vehicle(s) from the Axon installer, said vehicle having been installed and configured with tested and fully and properly operational in-car hardware and software identified above, Customer will receive a Professional Services Acceptance Checklist to submit to Axon indicating acceptance or denial of said deliverables.

7. Axon Fleet Upgrade. If Customer has no outstanding payment obligations and has purchased the "Fleet Technology Assurance Plan" (Fleet TAP), Axon will provide Customer with the same or like model of Fleet hardware ("Axon Fleet Upgrade") as scheduled on the Quote.

7.1. If Customer would like to change models for the Axon Fleet Upgrade, Customer must pay the difference between the MSRP for the offered Axon Fleet Upgrade and the MSRP for the model desired. The MSRP is the MSRP in effect at the time of the upgrade. Customer is responsible for the removal of previously installed hardware and installation of the Axon Fleet Upgrade.

7.2. Within thirty (30) days of receiving the Axon Fleet Upgrade, Customer must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon, including serial numbers of the destroyed Axon Devices. If Customer does not destroy or return the Axon Devices to Axon, Axon will deactivate the serial numbers for the Axon Devices received by Customer. 139
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Axon Respond Appendix
This Axon Respond Appendix applies to both Axon Respond and Axon Respond Plus, if either is included on the Quote.

1. Axon Respond Subscription Term. If Customer purchases Axon Respond as part of a bundled offering, the Axon Respond subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Respond to Customer. If Customer purchases Axon Respond as a standalone, the Axon Respond subscription begins the later of the (1) date Axon provisions Axon Respond to Customer, or (2) first day of the month following the Effective Date. The Axon Respond subscription term will end upon the completion of the Axon Evidence Subscription associated with Axon Respond.

2. Scope of Axon Respond. The scope of Axon Respond is to assist Customer with real-time situational awareness during critical incidents to improve officer safety, effectiveness, and awareness. In the event Customer uses Axon Respond outside this scope, Axon may initiate good-faith discussions with Customer on upgrading Customers Axon Respond to better meet Customers needs.

3. Axon Body LTE Requirements. Axon Respond is only available and usable with an LTE enabled body-worn camera.

Axon is not liable if Customer utilizes the LTE device outside of the coverage area or if the LTE carrier is unavailable.

LTE coverage is only available in the United States, including any U.S. territories. Axon may utilize a carrier of Axons choice to provide LTE service. Axon may change LTE carriers during the Term without Customers consent.

4. Axon Fleet LTE Requirements. Axon Respond is only available and usable with a Fleet 3 system configured with LTE modem and service. Customer is responsible for providing LTE service for the modem. Coverage and availability of LTE service is subject to Customers LTE carrier.

5. Axon Respond Service Limitations. Customer acknowledges that LTE service is made available only within the operating range of the networks. Service may be temporarily refused, interrupted, or limited because of: (a) facilities limitations; (b) transmission limitations caused by atmospheric, terrain, other natural or artificial conditions adversely affecting transmission, weak batteries, system overcapacity, movement outside a service area or gaps in coverage in a service area, and other causes reasonably outside of the carrier’s control such as intentional or negligent acts of third parties that damage or impair the network or disrupt service; or (c) equipment modifications, upgrades, relocations, repairs, and other similar activities necessary for the proper or improved operation of service.

5.1. With regard to Axon Body, Partner networks are made available as-is and the carrier makes no warranties or representations as to the availability or quality of roaming service provided by carrier partners, and the carrier will not be liable in any capacity for any errors, outages, or failures of carrier partner networks. Customer expressly understands and agrees that it has no contractual relationship whatsoever with the underlying wireless service provider or its affiliates or contractors and Customer is not a third-party beneficiary of any agreement between Axon and the underlying carrier.

6. Termination. Upon termination of this Agreement, or if Customer stops paying for Axon Respond or bundles that include Axon Respond, Axon will end Axon Respond services, including any Axon-provided LTE service. 140
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Axon Auto-Transcribe Appendix
This Appendix applies if Axon Auto-Transcribe is included on the Quote.

1. Subscription Term. If Customer purchases Axon Auto-Transcribe as part of a bundle or Axon Cloud Services subscription, the subscription begins on the later of the (1) start date of the bundle or Axon Cloud Services license term, or (2) date Axon provisions Axon Auto-Transcribe to Customer. If Customer purchases Axon Auto-Transcribe minutes as a standalone, the subscription begins on the date Axon provisions Axon Auto-Transcribe to Customer.

1.1. If Customer cancels Auto-Transcribe services, any amounts owed by the Parties will be based on the amount of time passed under the annual subscription, rather than on the number of minutes used, regardless of usage.

2. Auto-Transcribe A-La-Carte Minutes. Upon Axon granting Customer a set number of minutes, Customer may utilize Axon Auto-Transcribe, subject to the number of minutes allowed on the Quote. Customer will not have the ability to roll over unused minutes to future Auto-Transcribe terms. Axon may charge Customer additional fees for exceeding the number of purchased minutes. Axon Auto-Transcribe minutes expire one year after being provisioned to Customer by Axon.

3. Axon Unlimited Transcribe. Upon Axon granting Customer an Unlimited Transcribe subscription to Axon AutoTranscribe, Customer may utilize Axon Auto-Transcribe with no limit on the number of minutes. Unlimited Transcribe includes automatic transcription of all Axon BWC and Axon Capture footage. With regard to Axon Interview Room, Axon Fleet, Axon Citizen, or third-party transcription, transcription must be requested on demand. Notwithstanding the foregoing, Axon may limit usage after 5,000 minutes per user per month for multiple months in a row. Axon will not bill for overages.

4. Warranty. Axon disclaims all warranties, express or implied, for Axon Auto-Transcribe. 141
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Axon Application Programming Interface Appendix
This Appendix applies if Axon’s API Services or a subscription to Axon Cloud Services are included on the Quote.

1. Definitions.

1.1. "API Client" means the software that acts as the interface between Customers computer and the server, which is already developed or to be developed by Customer.

1.2. "API Interface" means software implemented by Customer to configure Customers independent API Client Software to operate in conjunction with the API Service for Customers authorized Use.

1.3. "Axon Evidence Partner API, API or Axon API" (collectively "API Service") means Axon s API which provides a programmatic means to access data in Customers Axon Evidence account or integrate Customers Axon Evidence account with other systems.

1.4. "Use" means any operation on Customer’s data enabled by the supported API functionality.

2. Purpose and License.

2.1. Customer may use API Service and data made available through API Service, in connection with an API Client developed by Customer. Axon may monitor Customers use of API Service to ensure quality, improve Axon devices and services, and verify compliance with this Agreement. Customer agrees to not interfere with such monitoring or obscure from Axon Customers use of API Service. Customer will not use API Service for commercial use.

2.2. Axon grants Customer a non-exclusive, non-transferable, non-sublicensable, worldwide, revocable right and license during the Term to use API Service, solely for Customers Use in connection with Customers API Client.

2.3. Axon reserves the right to set limitations on Customer s use of the API Service, such as a quota on operations, to ensure stability and availability of Axons API. Axon will use reasonable efforts to accommodate use beyond the designated limits.

3. Configuration. Customer will work independently to configure Customer’s API Client with API Service for Customer’s applicable Use. Customer will be required to provide certain information (such as identification or contact details) as part of the registration. Registration information provided to Axon must be accurate. Customer will inform Axon promptly of any updates. Upon Customer’s registration, Axon will provide documentation outlining API Service information.

4. Customer Responsibilities. When using API Service, Customer and its end users may not:

4.1. use API Service in any way other than as expressly permitted under this Agreement;

4.2. use in any way that results in, or could result in, any security breach to Axon;

4.3. perform an action with the intent of introducing any viruses, worms, defect, Trojan horses, malware, or any items of a destructive nature to Axon Devices and Services;

4.4. interfere with, modify, disrupt or disable features or functionality of API Service or the servers or networks providing API Service;

4.5. reverse engineer, decompile, disassemble, or translate or attempt to extract the source code from API Service or any related software;

4.6. create an API Interface that functions substantially the same as API Service and offer it for use by third parties;

4.7. provide use of API Service on a service bureau, rental or managed services basis or permit other individuals or entities to create links to API Service;

4.8. frame or mirror API Service on any other server, or wireless or Internet-based device;

4.9. make available to a third-party, any token, key, password or other login credentials to API Service;

4.10. take any action or inaction resulting in illegal, unauthorized or improper purposes; or

4.11. disclose Axon s API manual.

5. API Content. All content related to API Service, other than Customer Content or Customers API Client content, is considered Axons API Content, including:
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5.1. the design, structure and naming of API Service fields in all responses and requests;

5.2. the resources available within API Service for which Customer takes actions on, such as evidence, cases, users, or reports;

5.3. the structure of and relationship of API Service resources; and

5.4. the design of API Service, in any part or as a whole.

6. Prohibitions on API Content. Neither Customer nor its end users will use API content returned from the API Interface to:

6.1. scrape, build databases, or otherwise create permanent copies of such content, or keep cached copies longer than permitted by the cache header;

6.2. copy, translate, modify, create a derivative work of, sell, lease, lend, convey, distribute, publicly display, or sublicense to any third-party;

6.3. misrepresent the source or ownership; or

6.4. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices).

7. API Updates. Axon may update or modify the API Service from time to time ("API Update"). Customer is required to implement and use the most current version of API Service and to make any applicable changes to Customers API Client required as a result of such API Update. API Updates may adversely affect how Customers API Client access or communicate with API Service or the API Interface. Each API Client must contain means for Customer to update API Client to the most current version of API Service. Axon will provide support for one (1) year following the release of an API Update for all depreciated API Service versions. 143
Master Services and Purchasing Agreement for Customer
Version: 21
Release Date: April 1, 2024 Page 19 of 19
Axon Event Offer Appendix
If the Agreement includes the provision of, or Axon otherwise offers, ticket(s), travel and/or accommodation for select events hosted by Axon (Axon Event), the following shall apply:

1. General. Subject to the terms and conditions specified below and those in the Agreement, Axon may provide Customer with one or more offers to fund Axon Event ticket(s), travel and/or accommodation for Customer-selected employee(s) to attend one or more Axon Events. By entering into the Agreement, Customer warrants that it is appropriate and permissible for Customer to receive the referenced Axon Event offer(s) based on Customers understanding of the terms and conditions outlined in this Axon Event Offer Appendix.

2. Attendee/Employee Selection. Customer shall have sole and absolute discretion to select the Customer employee(s) eligible to receive the ticket(s), travel and/or accommodation that is the subject of any Axon Event offer(s).

3. Compliance. It is the intent of Axon that any and all Axon Event offers comply with all applicable laws, regulations and ethics rules regarding contributions, including gifts and donations. Axon’s provision of ticket(s), travel and/or accommodation for the applicable Axon Event to Customer is intended for the use and benefit of Customer in furtherance of its goals, and not the personal use or benefit of any official or employee of Customer. Axon makes this offer without seeking promises or favoritism for Axon in any bidding arrangements. Further, no exclusivity will be expected by either party in consideration for the offer. Axon makes the offer with the understanding that it will not, as a result of such offer, be prohibited from any procurement opportunities or be subject to any reporting requirements.

If Customer’s local jurisdiction requires Customer to report or disclose the fair market value of the benefits provided by Axon, Customer shall promptly contact Axon to obtain such information, and Axon shall provide the information necessary to facilitate Customer's compliance with such reporting requirements.

4. Assignability. Customer may not sell, transfer, or assign Axon Event ticket(s), travel and/or accommodation provided under the Agreement.

5. Availability. The provision of all offers of Axon Event ticket(s), travel and/or accommodation is subject to availability of funds and resources. Axon has no obligation to provide Axon Event ticket(s), travel and/or accommodation.

6. Revocation of Offer. Axon reserves the right at any time to rescind the offer of Axon Event ticket(s), travel and/or accommodation to Customer if Customer or its selected employees fail to meet the prescribed conditions or if changes in circumstances render the provision of such benefits impractical, inadvisable, or in violation of any applicable laws, regulations, and ethics rules regarding contributions, including gifts and donations. 144
CONSENT ITEM 3.7

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Willie Howard Mays Jr. Proclamation
Recommendation
Present the proclamation for Willie Howard Mays Jr.

Attachments

1. Proclamation
145

PROCLAMATION OF THE CITY OF EAST PALO ALTO
HONORING WILLIE HOWARD MAYS JR.

WHEREAS, Willie Howard Mays Jr., one of the greatest baseball athletes of all time and a Bay Area philanthropist died on June 18, 2024; and
WHEREAS, Willie Howard Mays Jr., was born on May 6, 1931, to Ann and Willie Howard Mays in Westfield Alabama, and played baseball with his father as a young child, before later in 1948 joining, in his early teens, the Birmingham Black Barons of National Negro League; and
WHEREAS, Willie Howard Mays Jr., suffered the then prevalent indignations of racism and prejudice, that had for years limited the opportunities in professional baseball that were available to African Americans; and WHEREAS, in 1950, the New York Giants finally had the courage to sign up Willie Howard Mays Jr. as a recognition of his sports skills and talents; and
WHEREAS, Wille Howard Mays is most remembered for “the Catch’ in Game 1 of the 1954 World Series when, with the game tied in the top of the eighth with two runners on when Willie Howard Mays Jr., sprinted with his back to the ball amazingly catching Vic Wiertz long drive over his shoulder and in a seemingly uninterrupted motion, hurled it into the infield ensuring the Giants win; and
WHEREAS, Willie Howard Mays Jr. holds the all-time record for putouts by an outfielder, he won 12 Gold Gloves in center field, appeared in 24 All-Star games, and with his incredible power and speed, was the league leader in home runs and stolen bases four times each; and
WHEREAS, In 1972, Willie Howard Mays Jr established the Say Hey Foundation to provide opportunities for youth such as providing college scholarships as well as supporting several local community agencies; and WHEREAS, In East Palo Alto the history of the National Negro League inspired Gene Tate in 1992 to create a T-Ball Pitching Machine baseball program with each team named after one of the 16 teams of the National Negro League; and WHEREAS, Students enrolled in the East Palo Alto Tee-Ball Pitching Program have received college scholarships from the Willie Howard Mays Jr. Say Hey Foundation.

NOW, THEREFORE, I, ANTONIO LOPEZ, MAYOR OF THE CITY OF EAST PALO ALTO, ON BEHALF OF THE CITY COUNCIL, in recognition of Willie Howard Mays Jr’s. many contributions to baseball, and professional sportsmanship do hereby express our deep appreciation for his dedication to youth, youth-serving agencies, and baseball and proclaim Saturday, August 3, 2024, as Celebration of Baseball, Willie Howard Mays Jr., EPA T-Ball Pitching Machine, and East Palo Alto Junior Giants.

Date: July 25, 2024
Antonio Lopez, Mayor
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CONSENT ITEM 3.8

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: Providing a bridge loan to Creative Montessori Learning Center of EPA Recommendation
Adopt a resolution authorizing the City Manager to negotiate and execute a loan agreement, in a form approved by the City Attorney, in an amount not to exceed $96,000 to the Creative Montessori Learning Center (CMLC) to help alleviate its current financial crisis and appropriating such an amount from Children Youth and Family Services (CYFS) Transient Occupancy Tax (TOT) Fund in the Fiscal Year 2024-25 Budget.

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

Priority: Enhance Community Services and Parks for Residents Background
The Creative Montessori Learning Center (CMLC), located in East Palo Alto, has been a cornerstone of our community for over 50 years. The center provides high-quality, accessible childcare and education, and is committed to serving families regardless of race, ethnicity, or status. With state subsidies, CMLC offers care and high-quality education to low-income families. Over 90% of the staff has worked at CMLC for 10 years or more, demonstrating a strong, stable, and experienced team dedicated to fostering the academic and personal development of children.

CMLC is currently facing a severe financial crisis due to a delayed annual audit, which has resulted in the State of California withholding funds since December 2023. The center has exhausted all reserve funds and, as of July 11, 2024, does not have sufficient funds to process payroll. The audit, conducted by its external auditor, has been significantly delayed despite all 147
CONSENT ITEM 3.8
necessary documents being provided by March 2024. The delay has exacerbated CMLC's financial difficulties, which were initially caused by years of mismanagement and leadership changes. Notably, no budget was created for the last two fiscal years, highlighting significant lapses in financial oversight. The State is currently holding $1,122,797 in anticipated revenues due to the delayed audit.

The purpose of this report is to recommend to Council approving a loan of $96,000 to the CMLC to help alleviate its current financial crisis. This loan will support the center's continued operation, benefiting the community by ensuring the availability of quality early childhood education.

Analysis
The financial crisis at CMLC presents a critical challenge to our community. CMLC serves 74 children and employs 21 staff members, all of whom would be directly impacted by its closure.

Additionally, the loss of CMLC would create a gap in our community's educational resources, particularly in early childhood education, which is a social determinant of child health and development.1
CMLC has taken proactive steps to mitigate the crisis, including seeking additional lines of credit, loans, and bridge funding. Additionally, board members have personally provided loans to help maintain operations during this difficult period. To further improve its financial situation, CMLC has implemented new procedures to address the findings and recommendations from past audits. These measures include hiring an executive director with over 27 years of experience managing nonprofit preschool programs and engaging Accurate Accounting to manage monthly accounting. Together, the executive director, accountant, and board of directors are implementing internal controls to strengthen the process in financial reporting and asset management. Despite these efforts, immediate financial support is crucial for the center to remain operational. The proposed loan from the City would provide the necessary bridge funding to stabilize the center's finances until the delayed state funds are released, which is expected to take an additional 2-3 weeks.

According to recent communication between Diana Buffington, Executive Director of CMLC, and the City staff, the center's reimbursable expenses as of March 2024 were $1,122,797.00. The audit completion has been delayed multiple times, and the State is holding CMLC's revenue due to the late filing of audited financial statements. CMLC requires immediate funds to process payroll and maintain operations. The most recent draft audit report highlights a significant going concern issue. The report indicates that due to the ongoing financial difficulties and the delay in state funding, there is substantial doubt about CMLC's ability to continue. The auditors have noted that the organization's financial health is precarious, and without immediate financial assistance, the center may not be able to sustain its operations.

The loan would be contingent upon specific terms, including:
1 Early Childhood Development and Education - Healthy People 2030 | health.gov 148
CONSENT ITEM 3.8
 A detailed repayment plan with a term of the earlier of one year from the date of disbursement or 30 days after the anticipated revenues from the state are received.  Provide regular financial reporting to the City to monitor the center's progress upon requests.
 Demonstrate efforts to develop a balanced annual budget, including implementation of cost-saving measures and strategies to increase enrollment.

In conclusion, this loan would not only support the center in the short term but also ensure its long-term sustainability, benefiting the broader community. Lending funds to CMCL is a strategic decision that supports our community's educational infrastructure and economic stability.

CMLC's role in providing quality education to our youngest residents is invaluable, and the proposed loan will ensure its continued operation. We urge the City Council to approve this recommendation.

Fiscal Impact
The proposed loan amount is $96,000, which will be sourced from the City's CYFS TOT Fund under Chapter 3.68 of the Municipal Code. This funding source is specifically dedicated to supporting services for children, youth, families, and senior citizens, making the loan qualified under Chapter 3.68 use of revenues.

The terms of the loan do not require interest, and the repayment period will be the lesser of one year or 30 days after the anticipated revenues from the state are received. The fiscal impact on the City's budget is manageable within the current financial position of the CYFS TOT fund which is estimated to be approximately $1,050,000 as of July 1, 2024.

The loan is expected to be repaid in full, ensuring the City's investment is returned. Furthermore, the investment in CMLC is anticipated to have a positive economic impact on the community by preserving jobs and maintaining an essential educational service for local families.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on bulletin boards located at (1) City Hall: 2415 University Avenue, East Palo Alto, (2) Library:
2415 University Avenue, East Palo Alto, and (3) 1960 Tate Street, 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.

Government Code § 84308
Applicability of Levine Act: Yes.
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CONSENT ITEM 3.8
Analysis of Levine Act Compliance: The signator(ies) to the loan agreement, includes Diana Buffington, Executive Director of CMLC. Staff is unaware of any other parties or participants relevant to the Council’s consideration of this item.

Attachments

1. Resolution

2. Draft loan agreement
150
Resolution No. XX-2025 1 of 2
RESOLUTION NO. XX– 2025

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND

EXECUTE A LOAN AGREEMENT, IN A FORM APPROVED BY THE CITY ATTORNEY, IN AN AMOUNT NOT TO EXCEED $96,000, TO THE CREATIVE MONTESSORI LEARNING CENTER (CMLC) TO HELP ALLEVIATE ITS CURRENT FINANCIAL CRISIS AND APPROPRIATING

SUCH AN AMOUNT FROM CHILDREN YOUTH AND FAMILY SERVICES (CYFS) TRANSIENT OCCUPANCY TAX (TOT) FUND IN THE FISCAL YEAR 2024-25 BUDGET WHEREAS, the Creative Montessori Learning Center (CMLC) located in East Palo Alto has been a cornerstone of the community for over 50 years, providing high-quality, accessible childcare education and committed to serving families regardless of race, ethnicity, or status and offers care and high-quality education to low-income families with the help of state subsidies; and WHEREAS, CMLC is currently facing a severe financial crisis due to a delayed annual audit, which has resulted in the State of California withholding funds since December 2023; and WHEREAS, CMLC has exhausted all reserve funds and, as of July 11, 2024, does not have sufficient funds to process payroll, with the State currently holding $1,122,797 in anticipated revenues due to the delayed audit; and
WHEREAS, CMLC serves 74 children and employs 21 staff members, all of whom would be directly impacted by its closure, and the loss of the center would create a gap in the community's educational resources, particularly in early childhood education; and WHEREAS, CMLC has taken steps to mitigate the crisis, including seeking additional lines of credit, loans, and bridge funding, and board members have provided loans to help maintain operations during this difficult period; and
WHEREAS, the proposed loan from the City would provide the necessary bridge funding to stabilize CMLC's finances until the delayed state funds are released; and WHEREAS, the City has determined that providing a loan to CMLC is a qualified use of revenues under Chapter 3.68 of the City’s Municipal Code, specifically the "Dedication of Ten Percent of Revenues to Children, Youth and Family Services, Including Senior Citizens" of Transient Occupancy Tax; and
WHEREAS, the terms of the loan do not require interest, and the repayment period will be the lesser of one year from the date of disbursement or 30 days after the anticipated revenues from the state are received; and
WHEREAS, the City has determined that providing a loan to CMLC is a qualified use of revenues under Chapter 3.68 of the City’s Municipal Code, specifically the "Dedication of Ten Percent of Revenues to Children, Youth and Family Services, Including Senior Citizens" of Transient Occupancy Tax; and
WHEREAS, the fiscal impact on the City's budget is manageable within the current financial position of the CYFS TOT fund, which is estimated to be approximately $1,050,000 as of July 1, 2024, 151
Resolution No. XX-2025 2 of 2
and the loan is expected to be repaid in full, ensuring the City's investment is returned.

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 negotiate and execute a loan agreement, in a form approved by the City Attorney, in an amount not-to-exceed $96,000, to the Creative Montessori Learning Center to help alleviate its current financial crisis

3. Appropriates $96,000 from the Children, Youth, and Family Services (CYFS) Transient Occupancy Tax (TOT) Fund in the fiscal year 2024-25 Budget for this loan; and

4. Finds that 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.

PASSED AND ADOPTED this 18th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
152
Loan Agreement
This Loan Agreement ("Agreement") is made and entered into as of [Insert Date], by and between the City of East Palo Alto, a municipal corporation ("City"), and Creative Montessori Learning Center, a California nonprofit corporation ("Borrower").

Recitals:

WHEREAS, the Borrower provides essential early childhood education services to the community of East Palo Alto and has been a cornerstone of the community for over 50 years; and
WHEREAS, the Borrower is currently experiencing a financial crisis due to delayed state funding, which has resulted in the Borrower exhausting all reserve funds and being unable to meet payroll obligations; and
WHEREAS, the City desires to support the continued operation of the Borrower for the benefit of the community by providing a loan to help alleviate the Borrower’s current financial crisis; and
WHEREAS, the City has determined that providing a loan to the Borrower is a qualified use of revenues under Chapter 3.68 of the City’s Municipal Code, specifically the "Dedication of Ten Percent of Revenues to Children, Youth and Family Services, Including Senior Citizens" of Transient Occupancy Tax.

Agreement:

NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, the City and the Borrower agree as follows:

1. Loan Amount and Disbursement

1.1 Loan Amount. The City agrees to lend to the Borrower the principal amount of Ninety-Six Thousand Dollars ($96,000) ("Loan").

1.2 Disbursement. The Loan shall be disbursed to the Borrower in one lump sum within [insert number] business days following the execution of this Agreement and satisfaction of any conditions precedent.

2. Interest and Repayment

2.1 Interest. The Loan shall be interest-free.

2.2 Repayment. The Borrower shall repay the Loan in full on the earlier of (i) one year from the date of disbursement, or (ii) thirty (30) days after the Borrower receives the anticipated revenues from the State of California currently withheld due to the delayed audit. 153

2.3 Payment Instructions. All payments shall be made to the City at 2415 University Avenue, East Palo Alto, CA 94303 or such other place as the City may designate in writing.

3. Use of Loan Proceeds
The Borrower shall use the Loan proceeds solely for the purpose of meeting payroll and operational expenses necessary to continue providing services.

4. Borrower's Covenants
The Borrower covenants and agrees with the City as follows:

4.1 Financial Reporting. The Borrower shall provide the City with regular financial reports, including but not limited to, monthly income statements, balance sheets, and cash flow statements upon City’s request.

4.2 Budget Development. The Borrower shall develop a balanced annual budget, including the implementation of cost-saving measures and strategies to increase enrollment.

4.3 Compliance. The Borrower shall comply with all applicable laws, rules, regulations, and requirements.

5. Default and Remedies

5.1 Events of Default. The occurrence of any of the following shall constitute an "Event of Default" under this Agreement:
(a) The Borrower fails to make any payment due under this Agreement on or before the due date. (b) The Borrower fails to comply with any term, covenant, or condition contained in this Agreement and such failure continues for thirty (30) days after written notice from the City.

5.2 Remedies. Upon the occurrence of an Event of Default, the City may, at its option, declare the entire unpaid principal amount of the Loan immediately due and payable, and exercise any and all rights and remedies available to it at law or in equity.

6. Miscellaneous

6.1 Amendments. This Agreement may be amended only by a written instrument executed by both parties.

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

6.3 Notices. All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed given when delivered personally, sent by certified mail, return receipt requested, or sent by a recognized overnight delivery service, addressed to the parties at their respective addresses set forth below, or to such other address as either party may designate by notice in accordance with this section.
154
City: City of East Palo Alto 2415 University Avenue, East Palo Alto, CA 94303 Attention: City Manager
Borrower: Creative Montessori Learning Center 1421 Bay Road East Palo Alto, CA 94303 Attention: Executive Director
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

CITY OF EAST PALO ALTO
By: ______________________________ Melvin Gaines, City Manager

CITY OF EAST PALO ALTO
By: ______________________________ John D. Lê, City Attorney

CREATIVE MONTESSORI LEARNING CENTER
By: ______________________________ Diana Buffington Executive Director 155
POLICY AND ACTION ITEM 6.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 25, 2024
TO: Honorable Mayor and Members of the City Council and Planning Commission VIA: Melvin E. Gaines, City Manager
BY: Amy Chen, Community & Economic Development Director Elena Lee, Planning Manager
SUBJECT: Ravenswood Business District / 4 Corners Subsequent Environmental Impact Report (SEIR) – Public Draft Overview and Comparison of Study Scenarios Recommendation
Conduct a Joint Study Session on the Ravenswood Business District / 4 Corners Specific Plan Update Project to:

1. Review and ask questions on the summary impact findings and mitigation measures of the Public Draft of the Ravenswood Business District / 4 Corners Subsequent Environmental Impact Report (“SEIR”); and

2. Provide additional comments and direction on staff recommendations pertaining to the preferred maximum development scenario, the Loop Road option, and the draft Community Benefits Framework.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
 Promote Housing, Economic and Workforce Development
 Promote Health & Public Safety
 Ensure Our Financial and Organizational Health
Executive Summary
• The Draft of the RBD / 4 Corners SEIR will be released for public review on July 26, 2024.

It has been prepared as a Subsequent EIR to the Final EIR adopted in 2013 for the 156
POLICY AND ACTION ITEM 6.1
original Specific Plan. It is a programmatic EIR that will enable future development projects to be found to have been adequately studied in the SEIR or to ‘tier’ off of its conclusions during additional project-level environmental review, by incorporating required mitigations and impact findings.
• For most resource topics, the SEIR finds no impacts or less than significant impacts; for four topics, key mitigation measures will be required from future developments.

Specifically, there are no impacts on Agriculture/Forestry, Mineral Resources, Wildfire, and less than significant impacts on Aesthetics, Energy, Geology, Hydrology, Land Use, Housing, Public Services, Recreation, and Utilities. Many impacts are substantially mitigated through policies, standards, and programs contained in the draft updated Specific Plan (or the 2013 Plan/EIR). Additional mitigation measures are included for several topics to reduce impacts to less than significant - for Biological Resources, Cultural Resources, Tribal Resources, and Hazards/Hazardous Materials. • The SEIR finds that the updated Specific Plan would produce several Significant and Unavoidable Impacts that cannot be fully reduced through mitigation. Its key findings are that both of the study scenarios would result in three Significant and Unavoidable impacts pertaining to Air Quality, Greenhouse Gases, and Noise that would need City Council to reject environmentally superior alternatives as infeasible and to adopt a statement of overriding considerations, supported by substantial evidence in the record. These are impacts that are commonly generated by major developments of scale in the Bay Area, and the impacts are not related to the Plan’s location, i.e. this amount of development occurring elsewhere in the City or elsewhere in the region would result in similar impacts due to the magnitude of development, and it is not unusual for city councils to find that specific economic, legal, social, technological, or other benefits, including region-wide or statewide environmental benefits, of a proposed project outweigh the unavoidable adverse environmental effects.
• There are minor differences in impacts between the two study scenarios. The analysis found no significant difference from a CEQA standpoint between Scenario 1 and 2 (i.e., in terms of environmental impacts, significance thresholds, or required mitigation measures), which is not to say that there are no differences between the two scenarios but that this gap is not significant from a CEQA standpoint and the findings the City would make in approving one scenario or the other would not change as to what impacts were significant and unavoidable and what mitigation measures are required. It is unlikely that the public will notice a tangible change in the environmental impacts were the City to implement Scenario 1 or 2.
• Residents would perceive a difference between the impacts of the 2013 Specific Plan compared to the two new study scenarios. Additional traffic delays on existing low-volume streets, greater noise on Bay Road, and criteria air pollutants further surpassing Bay Area Air Quality Management District (BAAQMD) thresholds would be the primary impacts experienced by the East Palo Alto community. For all other CEQA topics, the impacts would not be substantially different between the Base Scenario/Existing Plan and the study scenarios (assuming that the mandated mitigation measures are implemented). For these reasons, the 2013 Specific Plan is presented in the SEIR as an environmentally 157
POLICY AND ACTION ITEM 6.1
superior alternative, however, because it would not allow for the same amounts of planned development as contemplated by the Plan Update, it would not achieve the Plan Update objectives to the same degree as the two Plan Update scenarios would. • The SEIR analyzed the impacts of building a Loop Road improvement along the eastern and northern perimeter of the Plan; staff recommends that the Loop Road is not included in the list of improvement projects funded by the Transportation Impact Fee.

Owing to the extremely high cost of construction, limitations to the buildable right-ofway, proximity to biological resources, impacts on private properties, and a marginal impact on reducing traffic congestion overall in the Plan Area, staff recommends removing the project from the City’s CIP and list of impact fee projects. • Non-CEQA impacts are generally similar between the smaller Scenario 1 and larger Scenario 2, with the following differences:
1) Traffic Congestion (as measured by Level of Service or LOS) – The larger scenario would generate approximately 12% more average daily trips than the smaller scenario, with most of the added congestion felt on Bay Road, Pulgas Avenue, and Clarke Street. (Note that CEQA now utilizes Vehicle Miles Traveled instead of Level of Service to measure transportation impacts. However, the City maintains intersection-level Level of Service thresholds and therefore potential LOS congestion impacts were analyzed for the SEIR.)
2) Impact Fees and Fiscal Revenue – Both scenarios perform strongly positively from a City fiscal and revenues standpoint. The larger scenario has the potential to provide approximately 15% more benefit to the City’s General Fund in terms of one-time impact fees and ongoing, increased property and sales tax revenues. 3) Wet Utility Infrastructure – Both scenarios will require substantial improvements to service the new demand. With these improvements, the water, sanitary sewer, and storm drainage systems would operate at or above current functionality (for instance by reducing flooding in University Village).
4) Indirect Displacement and Housing Affordability – Both scenarios have the potential to spur indirect displacement of existing residents (gentrification through upward pressure on housing sales prices and rents); however, the larger scenario would be expected to generate more affordable housing (and market-rate housing) and Measure HH funding that would assist in ameliorating this potential indirect displacement.
5) Visual Impacts and Placemaking – The larger scenario would allow for potentially more building square footage and slightly taller buildings; however, the Specific Plan includes height restrictions in highly sensitive locations which applies equally to both scenarios.
6) Local Employment – The larger scenario could potentially result in about 2,000 more jobs. Regardless of scenario selection, the market has moved away from tech office towards more industrial, R&D, and flex-oriented uses. • Selecting the larger scenario (2) i.e. the larger development capacity is recommended.

Staff is still recommending that the Specific Plan be implemented with the larger of the two study scenarios analyzed in the SEIR (3.35 million square feet of office/R&D space), 158
POLICY AND ACTION ITEM 6.1
as this offers more flexibility for the City to consider higher-density development in the future. Including two tiers of bonus FAR accommodates interest from several developers which gave rise to the current Specific Plan Update to begin with. It would also provide the potential to obtain greater community benefits. Comparatively, the differences in impacts between both scenarios are minor with the larger scenario potentially offering additional economic and fiscal benefits (by capturing more higher-density development overall in the Plan Area).
• Staff wishes to convey that key elements of the proposed Community Benefits Framework (its Tiers and/or maximum FARs) would likely need to be adjusted if the smaller scenario is selected by Council. There is a close relationship between the Framework and the maximum development capacity (assuming the City wishes to ensure that all known major projects could entitle at least a Standard Tier project). In order to maintain the possibility of this outcome, if the smaller scenario (2.82 million square feet) is selected, the City must either remove the Exemplary Tier or reduce the maximum FARs for both the Standard and Exemplary Tiers, either of which is likely to discourage some amount of higherdensity development. Leaving the Tiers and FARs unchanged while selecting the smaller scenario would likely constrain the higher-density potential of any development projects occurring later (since earlier projects would have claimed the majority of the limited development capacity).Staff notes that the maximum FARs for the Base Tier or lowerdensity projects would be the same under both Scenarios 1 and 2. In other words, a property owner could construct the same Base Tier project under either Scenario. Since lower-density projects are currently more likely, in the near term it is not as significant which scenario is selected, but the scenario selection will strongly influence the long-term plans of major property owners.
• Staff does not recommend reducing the proposed benefits targets/expectations associated with the higher-density Tiers in order to improve feasibility for higher-density projects in the near term. Even with recent changes to market conditions, the proposed Community Benefits Framework and its FARs, Tiers, and Targets remains a workable policy approach for the Specific Plan but higher-density development will require a marked improvement in current market conditions in order to be financially feasible.

Lower-density development is far more likely in the short-term but supports less benefits. • Aside from the selection of the maximum scenario and inclusion of the Loop Road, the most significant policy question remaining for the City Council to consider relates to what kind of non-residential developments it wishes to grant allocations in the near term given current market conditions. The Council should affirm if there is an explicit desire to preserve some land for future higher-density projects or whether it is acceptable for most or all of the Plan Area to be potentially developed with lower-density R&D/flex/industrial/advanced manufacturing uses which may be the most feasible option in the near-term. City staff recommends creating a policy that monitors the total overall amount of R&D/flex/industrial/advanced manufacturing in the Plan Area. 159
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Background
In September 2020, the City Council recommended exploring a focused amendment to the Ravenswood Business District / 4 Corners Specific Plan (“Specific Plan”) and subsequent Environmental Impact Report (“SEIR”). The Specific Plan and SEIR update analyzed the impacts of increasing the amount of office and research and development (R&D) space and housing in the Specific Plan area. The key objectives for the Specific Plan update were to evaluate the relative impacts and benefits of allowing more office/R&D square footage and define policies that address: 1) traffic congestion and trip reduction; 2) wet utility infrastructure; 3) fiscal impacts; 4) indirect displacement and housing affordability; and 5) local jobs, while articulating a clear framework with community benefits.

Accompanying the updated Specific Plan is a Draft Subsequent Environmental Impact Report (SEIR), whose purpose is to inform decision makers and the general public of the environmental effects of the proposed project (update to the RBD/4 Corners Specific Plan). The purpose of this report and presentation to Council is to give an overview of the findings of the Public Draft of the Ravenswood Business District / 4 Corners Subsequent Environmental Impact Report, especially with respect to the relative comparison between the two maximum growth scenarios being studied, and to continue discussion on the updated Community Benefits Framework (and its FARs, Tiers, and Targets).

Analysis
Release of a Subsequent Environmental Impact Report (SEIR) A Public Draft SEIR has been prepared as part of the subsequent environmental review process needed to evaluate the proposed changes to the project (increased square footage of allowable non-residential development as well as additional housing units) analyzed in the previously certified 2013 Ravenswood Specific Plan FEIR. In accordance with Section 15082 of the CEQA Guidelines, the City previously prepared a Notice of Preparation (NOP) for this SEIR. The NOP1 was circulated to local, state, and federal agencies on April 15, 2022. The standard 30-day comment period concluded on May 16, 2022.2
The rationale for preparing this subsequent report is that approximately eight years after FEIR certification and approval of the 2013 Specific Plan, the City received a number of preliminary development proposals that cumulatively exceeded the allowed development capacity in the 2013 Specific Plan. Accordingly, the City had determined that consideration of an update to the 1 Link to the Notice of Preparation:
https://www.cityofepa.org/sites/default/files/fileattachments/planning/page/22862/nop_rbd_sp_update_- _full_version_oprcounty_clerk_4.13.22_1.pdf
2 Link to comments on the Notice of Preparation:
https://www.cityofepa.org/sites/default/files/fileattachments/planning/page/22862/rbd_nop_comments_summary_ memo_and_attachments_final.pdf
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Specific Plan would be in order to potentially allow for new development opportunities within the area. The proposed update to the Specific Plan would increase the total amount of development allowed within the Plan area (shown below in Table 1). Background information and direction provided by the Council in two study sessions regarding the Project scenarios studied in the SEIR can be found in the staff reports from the September 28, 20213 and November 18, 20214 The following No Project scenarios and Alternative to the Project were evaluated in the SEIR:
• No Project/No New Development (assumes the Specific Plan area remains as it is today)
• No Project/Adopted Specific Plan (assumes the 2013 Specific Plan would be adopted).

Referred to as the Base Scenario in certain analyses.
• Reduced Scale Alternative (assumes a 40% reduction of future development compared to Scenario 2, the most intensive scenario).

The Adopted 2013 Specific Plan allows approximately 1.44 million square feet of office/R&D space and 175,000 square feet of industrial space. The SEIR for the updated Plan analyzed two maximum Project scenarios, with capacity greater than the Adopted Plan:
• Scenario 1 – up to 2.82 million square feet of office/R&D space, 250,000 square feet of industrial space, and 1,350 housing units.
• Scenario 2 – up to 3.35 million square feet of office/R&D space, 300,000 square feet of industrial space, and 1,600 housing units.

Table 1: SEIR Scenarios (Alternatives)
Office/R&D Office R&D/Lab Industrial Retail Civic/
Community
“No Project / No
Development 0 0 0 0 0 0
“No Project” /
Adopted 2013
Specific Plan
1,444,410 1,268,500 175,910 175,910 112,400 61,000
Project
Scenario #1 2,824,000 1,835,600 988,400 250,000 112,400 154,700 Net Change #1 +1,379,590 +567,100 +812,490 +74,090 0 +93,700 Project
Scenario #2 3,335,000 2,167,750 1,167,250 300,000 112,400 154,700 Net Change #2 +1,890,590 +899,250 +991,340 +124,090 0 +93,700 3 Link to the September 28, 2021 Study Session:
eastpaloalto.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=1383&Inline=True 4 Link to the November 18, 2021 Study Session:
eastpaloalto.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=1400&Inline=True 161
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All Multi-family Single-family/
Townhouse
0 0 0
“No Project”
Scenario 835 816 19
Project Scenario
#1 1,350 1,270 80
Net Change #1 +515 +454 +61
Project Scenario
#2 1,600 1,472 128
Net Change #2 +765 +656 +109
This environmental impact report is “subsequent” because it builds off the 2013 Specific Plan EIR. CEQA Guidelines Section 15162(a) state that when an EIR has been certified, no subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, that substantial changes are proposed in the project (i.e., the 2013 Plan) which would require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. The proposed increase in allowed development would require major revision to the 2013 EIR and has the potential to cause a substantial increase in significant effects from what was studied in the 2013 EIR, and therefore this subsequent environmental impact report/assessment is required per State CEQA law.

This SEIR document represents an assessment of the cumulative impacts on the community and environment that may result from future development in the Specific Plan Area. The SEIR is programmatic in nature, which means that it establishes cumulative impacts and mitigation measures at a Plan-wide level. Future projects in the Specific Plan Area would be analyzed to determine whether the project falls within the scope of the SEIR and is adequately analyzed or whether additional environmental review, including site-specific technical studies as specified by development policies included in the Plan and mitigation measures included in the SEIR, would be necessary.

Summary of SEIR Findings
The following describes the topics and impacts that were analyzed in the Draft RBD/4 Corners Specific Plan SEIR (the SEIR studied an option with and without loop road and assumed that a multi-use path would be constructed under either option). • There was no Impact to Agricultural and Forestry Resources, Mineral Resources, or Wildfire.
• There were less than significant impacts to: Aesthetics, Construction Air Quality, Construction Noise, Cultural Resources, Tribal Cultural Resources, Energy, Hazards and Hazardous Materials, Hydrology, Land Use, Population and Housing, Public Services, Recreation, Transportation, and Utilities and Service Systems. 162
POLICY AND ACTION ITEM 6.1
o Future projects under the Specific Plan Update would be required to comply with the City’s General Plan, applicable regulations, proposed Specific Plan Update Policies and Standards, thresholds, and regional plans, resulting in less than significant impacts.
o Aesthetics, Hazardous Materials, Hydrology and Water Quality, and Land Use:

Hazardous materials, hydrology and water quality, and land use would have similar impacts for all scenarios as they would be required to: a) implement policies that require the cleanup of contaminated sites, and c) not physically divide an established community and comply with a land use plan/policy/regulation adopted to avoid or mitigate an environmental effect.

Policies require that future developments prepare Phase I ESAs, Site Management Plans, and other relevant documents to investigate and address soil and groundwater conditions. For aesthetics, given there would be more development under Scenario 2, this scenario could result in additional light and glare (compared to the smaller scenario); however, projects under both scenarios would be required to comply with Specific Plan standards for lighting and Parks Master Plan’s lighting standards to reduce the impact to less than significant. o Cultural Resources and Tribal Cultural Resources: New development under both study scenarios would result in the same impacts to cultural resources and tribal cultural resources, given that these resources are part of the existing environmental conditions and the same amount of redevelopment of existing uses, e.g., building demolition and ground disturbance, would occur. Significant impacts would be reduced to a less than significant level with the implementation of proposed Specific Plan Update Policies.
o Population and Housing: Specific Plan Update Scenario 2 would result in a higher population than Scenario 1 and the 2013 Specific Plan; however, Scenarios 1 and 2 would be consistent with Plan Bay Area 2050 goals and the 2013 Specific Plan would be consistent with the General Plan goals for population growth. Scenarios 1 and 2 exceed the population growth studied under the 2035 General Plan, but are consistent with the goals for redevelopment of the Plan Area and improving the City’s jobs/housing balance. o Public Services and Recreation: Scenario 2 would result in a higher demand for public services and recreation than the 2013 Scenario and Scenario 1. However, with the payment of impact fees for schools, public facilities, and parks and compliance with the City’s parkland goals, both scenarios would result in a less than significant impact (as would the Adopted 2013 Plan). o Energy: Scenario 2 would require more energy consumption given more development is allowed under this scenario. However, all development scenarios would be required to comply with CALGreen, current building codes, construction best management practices, TDM Measures and would not result in a wasteful/inefficient consumption of energy.
o Transportation: In general, VMT per resident and VMT per employee for Scenario 2 would be slightly above Scenario 1. Under cumulative conditions plus Scenario 2, VMT per resident was slightly lower than the VMT per resident for Scenario 1 since the average trip length would be shorter as there would be more job opportunities nearby, and, because of improved transit service in the 163
POLICY AND ACTION ITEM 6.1
future, the future residents of the Specific Plan Update would experience higher transit use. All scenarios, under which development would comply with the City’s TDM Ordinance requirement of 40% trip reduction, would result in less than significant VMT impacts.
o Utilities and Service Systems: Scenario 2 results in a higher demand on utilities (water demand, fire flow systems, sanitary sewer, storm drainage. These demands could be met with identified CIP projects (planned for through implementation of the Nexus Study/Capital Improvement Projects funded by impact fees). Developers would pay impact fees that represent their fair share contribution toward implementing improvements to meet the demands.  The Specific Plan Update combined with the General Plan buildout would result in the City slightly exceeding its contractual wastewater treatment capacity of 2.89 million gallons per day for average dry weather flow and

3.33 million gallons per day for average annual flow. The SEIR identifies the EPASD/City will have to obtain additional treatment capacity from the Palo Alto Regional Water Quality Control Plan (PARWQCP) to allow for buildout of cumulative growth Based on the City of Palo Alto’s General Plan, at least 5 MGD of capacity at the PARWQCP will exist by 2062.

Under Scenario 1, the City would require 0.06 MGD of additional treatment capacity rights and under Scenario 2, the City would require 0.24 MGD of additional treatment. This represents a small percentage of the regional plant’s total future treatment volume.
• With implementation of mitigation measures, the 2013 Specific Plan and Specific Plan Update Scenarios 1 and 2 would result in less than significant impacts to Biological Resources, Construction Air Quality, Construction Noise, and Geology and Soils. o Biological Resources and Geology and Soils: These resource areas would have similar less than significant impacts with mitigation incorporated for the 2013 Specific Plan and Specific Plan Update Scenarios 1 and 2, given these resources are part of the existing environmental conditions and the ground level footprint/disturbance will not be greater.. Mitigation is included to protect the salt marsh harvest mouse and salt marsh wandering shrew to reduce impacts to less than significant.
 The option with the loop road would impact more salt marsh habitat than the option without the loop road.
o Construction Air Pollutant Emissions and Construction Noise: Scenario 2 could result in more construction emissions and noise compared to the 2013 Specific Plan and Scenario 1. However, mitigation such as use of Tier 4 equipment and electric equipment for air quality would reduce emissions and adherence to construction hours and installation of noise barriers for noise, would reduce impacts to sensitive receptors to less than significant for all scenarios. • Significant and Unavoidable impacts were observed for Air Quality, Greenhouse Gas Emissions, and Noise under both Scenario 1 and 2. The large scale of proposed project – i.e., the Specific Plan – causes impacts that exceed key CEQA thresholds. These are expected impacts from large-scale Bay Area specific planning efforts and are commonly found acceptable in consideration of the project benefits for any project of significant 164
POLICY AND ACTION ITEM 6.1
scale. For comparison, the Adopted 2013 Plan also causes significant and unavoidable impacts to Air Quality and Greenhouse Gas Emissions.

CEQA Alternatives
• The SEIR evaluated a range of feasible alternatives to the project that would attain most of the basic objectives of the project and avoid or substantially lessen the environmental effects of the project:
o No Project/No New Development Alternative (assumes existing conditions remain as they are today and the 2013 Specific Plan is not implemented). Avoids all environmental impacts but only partially meets three of the 17 project objectives.
o Reduced Scale Alternative: 40% reduction in the size of Scenario 2  Reduces the significant unavoidable traffic noise impacts to less than significant (less than a three dBA noise increase from this alternative compared to existing conditions).
 Reduced Scale Alternative would reduce operational air pollutant emissions to below BAAQMD thresholds for two of the criteria pollutants that would be above the thresholds for the Specific Plan Update. However, operational ROG would still be above the BAAQMD threshold; as a result, there would still be a significant unavoidable impact from operational criteria pollutant emissions.
 This alternative avoids the significant and unavoidable traffic noise impact, meets 10 of the 17 objectives, and partially meets seven of the objectives (but not to the same extent as the Specific Plan Update) o No Project/Adopted 2013 Specific Plan Alternative (assumes the 2013 Specific Plan would be built out): The No Project/Adopted 2013 Specific Plan conclusions would be similar to the Reduced Scale Alternative. The No Project/2013 Specific Plan would allow approximately 5% less development than the Reduced Scale Alternative.
 This alternative avoids the significant and unavoidable noise impact, meets 10 of the objectives, and partially meets eight of the objectives (but not to the same extent as the Specific Plan Update)
Comparison Between Proposed Project Scenarios
The SEIR studied two Project scenarios that would increase the overall development allowed under the Specific Plan.
• There are only extremely minor differences from a CEQA standpoint between the Project study scenarios; that is, the two Scenarios show no difference in whether they exceed significance thresholds (no difference in impact levels), and the public wouldn’t be expected to perceive a difference between the impacts. 165
POLICY AND ACTION ITEM 6.1
o While there is a small amount of difference in the relative impact (generally, it is 5 to 15% higher with the larger scenario, these differences do not correspond to a measurable difference in health or smog outcomes or a change in actual environmental outcomes.
o The mitigation measures are all the essentially same between Scenario 1 and 2 with the exception of additional infrastructure improvements identified in the Utility Impact Study. See the Non-CEQA Impacts section below for a discussion of the four additional traffic signalizations required for Scenario 2 (since Level of Service is no longer utilized as the CEQA criteria threshold).

Comparison Between Project Scenarios and Adopted Plan
• Overall, there would be a substantial difference between Adopted 2013 Plan and two new Scenarios primarily due to Noise and Air Quality impacts. o Noise is a new Significant and Unavoidable impact under Scenario 1 and 2, compared to the Adopted 2013 Plan.
 A permanent increase in noise levels would be considered substantial if traffic volumes result in a noise level increase of three (3) decibels (dBA) community noise equivalent level sound levels (CNEL) and ambient conditions exceed 65 dBA CNEL at sensitive receptors (e.g., residences, hospitals, schools). CNEL is a time-weighted 24-hour average based on decibels experienced at different times of day (and year).  2013 Specific Plan (assumes loop road is included): The traffic noise increase compared to existing conditions, from all studied roadway segments, would be less than three dBA CNEL (traffic noise threshold).  Scenarios 1 and 2: Traffic noise levels from two studied roadway segments along Bay Road (University Avenue to Clark Avenue and Clarke Avenue to Pulgas Avenue) would exceed the threshold by 1 to 2 dBA (with and without the loop road).
 Mitigation Measures include:
• Future development projects will pay a fair share contribution toward the City’s installation of quieter pavement types such as Open-Grade Rubberized Asphaltic Concrete which could reduce noise levels by two to three dBA depending on the existing pavement type and traffic speed allowed.
• Future development projects shall install or pay a fair share contribution toward the City's installation of traffic calming measures along Bay Road (between University Avenue and Pulgas Avenue) that include, but not limited to, speed humps, bumps, or tables, or traffic circles. It may not be feasible to reduce traffic noise at all affected sensitive receptors along Bay Road (between University Avenue and Pulgas Avenue) and, in that event, the impact of the Specific Plan Update buildout (including with or 166
POLICY AND ACTION ITEM 6.1
without the loop road for both scenarios) would be significant and unavoidable.
o Air Quality impacts would be Significant and Unavoidable under the Adopted 2013 Plan and both of the Update Scenarios (1 and 2); however, impacts would be worse under new scenarios since more of the criteria pollutants would exceed thresholds:
 The Bay Area Air Quality Management District (BAAQMD) has thresholds for regional criteria air pollutants. Projects that exceed these thresholds would be considered to result in a cumulatively considerable contribution to a net increase of that pollutant. There are four criteria pollutants that BAAQMD regulates that would be emitted by future development under the Plan.
 Adopted 2013 Plan: The operational emissions for the 2013 Specific Plan would exceed BAAQMD’s thresholds for one of the four criteria pollutants.  Specific Plan Update Scenarios 1 and 2: Operational emissions exceed the thresholds for three of the four criteria air pollutants.  The emissions for Scenario 1 would be approximately 15 percent less than Scenario 2, given Scenario 1 proposes about 15 percent less development as a whole compared to Scenario 2.
 The Adopted 2013 Specific Plan would have emissions approximately 50 percent lower than emissions from the buildout of Scenario 2 and 40 percent lower than emissions than Scenario 1.
 For Specific Plan Update Scenarios 1 and 2, there would not be a significant difference in emissions between the loop road and no loop road options. (e.g., Scenario 2 ROG emissions would be 214.25 lbs./day with no loop road and 213.99 lbs./day with the loop road, which is less than a

0.3 lbs. per day difference)
o The Adopted 2013 Plan and both of the Update Scenarios all cause a significant impact to Greenhouse Gases; however, it is not due to the volume emitted by the new development but due to the unachievable nature of a carbon neutrality target.
 BAAQMD’s Plan-level threshold is for it to be demonstrated that the Plan can meet California’s goals to reduce emissions by 40 percent below 1990 levels by 2030 and carbon neutrality by 2045. There is no current pathway for the Plan Scenarios, based on the mechanisms currently available to the City, to achieve carbon neutrality by 2045. Therefore, the 2013 Specific Plan and Specific Plan Update Scenarios 1 and 2 would all result in significant and unavoidable GHG impacts.

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Table 2: Summary of SEIR Impact Findings (Bold text indicates environmentally superior to Project) Impacts
No Project/
No New
Development
No Project/
Adopted 2013
Specific Plan
(“Base”)
Reduced Scale
Alternative
Project
Scenario #1 w/o
Loop Road
Project
Scenario 1 w/
Loop Road
Project Scenario
2 w/o Loop Road
Project Scenario
2 w/ Loop Road
Aesthetics NI LTS LTS LTS LTS LTS LTS
Agricultural
and Forestry
Resources

NI NI NI NI NI NI NI
Air Quality NI SU SU SU SU SU SU
Biological
Resources NI LTSM
LTSM (with loop
road)
LTSM (without
loop road)

LTSM LTSM LTSM LTSM
Cultural
Resources NI LTS LTS LTSM LTSM LTSM LTSM
Energy NI LTS LTS LTS LTS LTS LTS
Geology and
Soils NI LTS LTS LTS LTS LTS LTS
Greenhouse
Gas
Emissions

NI SU SU SU SU SU SU
Hazards and
Hazardous
Materials

NI LTSM LTSM LTSM LTSM LTSM LTSM
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Impacts
No Project/
No New
Development
No Project/
Adopted 2013
Specific Plan
(“Base”)
Reduced Scale
Alternative
Project
Scenario #1 w/o
Loop Road
Project
Scenario 1 w/
Loop Road
Project Scenario
2 w/o Loop Road
Project Scenario
2 w/ Loop Road
Hydrology
and Water
Quality

NI LTS LTS LTS LTS LTS LTS
Land Use NI LTS LTS LTS LTS LTS LTS
Mineral
Resources NI NI NI NI NI NI NI
Noise NI LTS LTS SU SU SU SU
Population
and Housing NI LTS LTS LTS LTS LTS LTS
Public
Services NI LTS LTS LTS LTS LTS LTS
Recreation NI LTS LTS LTS LTS LTS LTS
Transportatio
n/Traffic NI LTS LTS LTS LTS LTS LTS
Tribal Cultural
Resources NI LTSM LTSM LTSM LTSM LTSM LTSM
Utilities and
Service
Systems

NI LTS LTS LTS LTS LTS LTS
Wildfire NI NI NI NI NI NI NI
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Comparison of Loop Road Impacts
The Loop Road was a proposed transportation improvement in the 2013 Specific Plan & EIR as a required CEQA mitigation for traffic congestion. It would be a two-lane roadway turning off of University Avenue at the San Francisco Public Utilities Commission (SFPUC) access road, running along the north and eastern edge of the University Village neighborhood, and connecting with the northern end of Demeter Street. This improvement was a required mitigation for the cumulative traffic impacts of the adopted Plan (1,444,410 square feet of office/R&D development and 835 housing units).

However, the findings of the 2023 Traffic Impact Analysis (TIA) prepared for the Specific Plan Update states that the Loop Road would not significantly mitigate traffic congestion.

Combined with changes in CEQA law (establishing VMT over LOS as a threshold) have resulted in a change to the status of the Loop Road compared to the 2013 Plan – it is no longer a required/assumed transportation improvement in the updated Specific Plan and SEIR.

Overall, this improvement would have mixed effects on relieving traffic congestion; the Loop Road generally results in lower delay at intersections along Bay Road and University Avenue - but higher delay at new intersections providing access to the Loop Road (the traffic model does not anticipate significant change/increase in cut-through traffic in University Village under either Loop or No Loop scenarios. Cut-through traffic is a concern primarily on Pulgas, Clarke, Runnymede, and Euclid). A comparison of the pros and cons of the Loop Road is included below:

Pros of Building the Loop Road
• Provides another fire access/emergency evacuation route for the Plan Area. Not viewed as critical by Menlo Park Fire Protection District but could be one way to maintain adequate response times in the face of growing congestion on other arterials.
• Shifts some traffic off of the University and Bay Road intersection (potentially reducing cut-through traffic on Clarke), reducing the amount of right-hand turn lanes by one that need to be added to the southeast corner of the intersection and consequently slightly reducing total right-of-way needed for improvements at this intersection.
• Reduces traffic volumes (and noise) on Bay Road between University Avenue and Pulgas Street.

Cons of Building the Loop Road
• Extremely expensive, estimated at $25,000,000 in 2018. Costs would likely be far higher at the present time. As discussed with Council on July 2, 2024 regarding the Nexus Study, this added cost significantly increases the potential transportation impact fee for all future RBD/4 Corners developments (by more than 60%, for example increasing the fee for R&D projects from $6.70/s.f. to 170
POLICY AND ACTION ITEM 6.1
$10.90 s.f.). Including the Loop Road in the list of projects for the Traffic Impact Fee (TIF) is likely to decrease the financial feasibility of future developments. • Shifts some traffic onto neighborhood street of Pulgas, likely increasing cutthrough traffic in the Weeks neighborhood. • Requires coordination with adjacent entities (Menlo Park, PG&E, SFPUC, etc.). • May be infeasible to build given biological constraints due to proximity to the Don Edwards Reserve/Baylands and the available right-of-way (no conceptual engineering has been completed so constructability is unknown). • May be infeasible given tight right-of-way dimensions along the City’s northern perimeter, with less than 75 feet between back of residential properties and the SamTrans railway corridor. See Figure 1 below for an illustration. • Could compromise the attractiveness and functionality of the multi-use path if the right-of-way must be shared with vehicles.
• Causes loss of additional 2.5 acres of potential habitat. • Visually, the Loop Road would be highly impactful on immediately adjacent residences (Scenario 1 would result in 645 peak hour trips and Scenario 2 has 702 peak hour trips).
• There would also be noise impacts on adjacent residences (an increase of two decibels).
• From a cumulative air quality standpoint, there is essentially no difference between the Loop Road and non-Loop scenarios, with the Loop Road causing <1% fewer annual operational emissions compared to the no-Loop Road option.

Figure 1: Potential Loop Road Configuration, Northern Perimeter 171
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Aesthetics Impacts of the Loop Road
The loop road and multi-use path would be flat (as shown in Figure 2) and not significantly affect scenic views of the San Francisco Bay. If the SAFER Bay levee is constructed (under a separate project by another public agency), it is possible that the multi-use path would be located on top of the levee. The multi-use path would not result in an increase in height of the potential levee and, therefore, would not have a significant impact on scenic views of the Bay. From a CEQA standpoint, the Loop Road would not obstruct the private scenic views of the bay from adjacent residential properties since it is not elevated or lined with a physical barrier. From the residents’ standpoint, vehicles traveling on the Loop Road could potentially be viewable from the rear of their residential properties (29 properties along the north, and 32 along the east), but this is not considered a CEQA impact.

Figure 2: Street Section, Loop Road Option, Eastern Perimeter of Plan Area Biological Impacts of the Loop Road
The no loop road option would accommodate a shared multi-use path for bicycles/pedestrians (on top of the future SAFER Bay levee) and no travel lanes. In this configuration, construction would result in the direct loss of 1.2 acres of upland grassland and 0.7 acres of salt marsh habitats that may be used by both salt marsh harvest mice and salt marsh wandering shrews, as well as 1.90 acres of urban landscape that would not provide suitable habitat for these species. The loop road option would result in the direct loss of 2.7 acres of upland grassland and 1.7 acres of salt marsh that provides potential habitat for salt marsh harvest mice and salt marsh wandering shrews, as well as

2.1 acres of urban landscape that would not provide suitable habitat for these species.

The total habitat acreage loss from the no loop road is 3.8 acres and the loop road is 6.3 acres. The difference in the acreage loss is due to the larger cross-section width of the loop road, which would be 56 feet wide on the eastern perimeter compared to 30 feet wide for the multi-use path without the loop road.
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It is unknown at this time whether the loop road (or multi-use path) would be constructed prior to, after, or concurrently with the future SAFER Bay levee. If the loop road (or multiuse path) is constructed after or concurrently with the construction of the levee, and located on the inward side of the levee, the loop road or multi-use path would not have any impacts on the habitat of the salt marsh harvest mouse and salt marsh wandering shrew. The SAFER Bay levee construction is a separate project from the Specific Plan and would require environmental review by the separate lead agency responsible for designing and carrying it out. If the levee is constructed prior to the loop road/multi-use path, the loop road/multi-use path would be constructed on the inward side of the levee; the levee would separate the road/path from salt marsh species and there would be no impact from the loop road/multi-use path.

Air Quality Impacts of the Loop Road
There is essentially no difference between the Loop Road and no-Loop scenarios, with the Loop Road causing <1% fewer annual operational emissions compared to the noLoop Road. This is due to the low volume of vehicles anticipated on the Loop Road.

Table 3: Operational Air Quality Impacts of Loop Road
Table 3.3-4: Operational Annual Emissions (Tons per Year) Scenario ROG NOx PM10 PM2.5
Emissions Per Year (Tons)
Unmitigated 2040 (Adopted 2013 Specific Plan with
Loop Road)

19.76 8.06 11.27 2.21
BAAQMD Project-Level Threshold (tons/year) 10 10 15 10
Exceed Project-level
Thresholds? (unmitigated)
Yes No No No
Unmitigated 2040 (Proposed Specific Plan Update
Scenario #1 with Loop Road)

33.78 12.80 18.44 3.60
BAAQMD Project-Level Threshold (tons/year) 10 10 15 10
Exceed Project-level
Thresholds? (unmitigated)
Yes Yes Yes No
Unmitigated 2040 (Proposed Specific Plan Update
Scenario #1 no Loop Road)

33.84 12.90 18.54 3.62
BAAQMD Project-Level Threshold (tons/year) 10 10 15 10
Exceed Project-level
Thresholds? (unmitigated)
Yes Yes Yes No
Unmitigated 2040 (Proposed Specific Plan Update
Scenario #2 with Loop Road)

39.05 14.40 20.83 4.07
BAAQMD Project-Level Threshold (tons/year) 10 10 15 10
Exceed Project-level
Thresholds? (unmitigated)
Yes Yes Yes No
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Unmitigated 2040 (Proposed Specific Plan Update
Scenario #2 no Loop Road)

39.10 14.49 20.92 4.08
BAAQMD Project-Level Threshold (tons/year) 10 10 15 10
Exceed Project-level
Thresholds? (unmitigated)
Yes Yes Yes No
Source: Illingworth & Rodkin, Inc. Ravenswood/4 Corners TOD Specific Plan Update Air Quality & Greenhouse Gas Assessment, East Palo Alto, California. May 21, 2024.

ROG = Reactive Organic Gas
NOx = Nitrogen Oxides
PM10 = Particulate matter with a diameter of 10 micrometers or less PM2.5 = Particulate matter with a diameter of 2.5 micrometers or less Noise Impacts of the Loop Road
Temporary construction noise impacts related to the Loop Road would be mitigated to a less than significant impact by requiring adherence to the City’s Municipal Code and implementation of best management practices during project construction, including adherence to Section 8.52.350-E of the East Palo Alto Municipal Code that restricts construction hours and mitigation measure NOI-5b (which stipulates use of quieter construction equipment).

Buildout of the Specific Plan Update with the Loop Road would generally result in slightly higher operational traffic noise levels for areas adjacent to the new road, but slightly lower traffic noise levels elsewhere than without the Loop Road, for both scenarios, as the Loop Road would handle some traffic that would otherwise be traveling on existing streets such as Bay Road. The findings are as follows:
• Traffic noise increases by two (2) dBA decibels when compared to the existing conditions along the Loop Road segments (for both growth scenarios). o The traffic volumes on the loop road would not be substantial enough to increase noise levels by more than two (2) decibels in Community Noise Equivalent Level (CNEL)5 and would not therefore result in a substantial increase in noise levels above existing conditions along the planned route of the loop road.
o The noise produced by the multi-use trail (i.e. bicyclists, pedestrians) would be less than the loop road traffic noise.
o Traffic noise levels for Scenarios #1 and #2 are similar, with Scenario #2, which includes about 15% more development than Scenario #1, producing the larger traffic volumes overall. However, the traffic volumes on the loop segments do not substantially differ between the scenarios. 5 Community Noise Equivalent Level (CNEL) is a weighted average of noise level over time. It is used to compare relative noisiness, often near airports. A CNEL exceeding 65 dBA is generally considered unacceptable for a residential neighborhood. 174
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• Traffic noise decreases by one (1) dBA decibel when compared to the existing conditions along several non-Loop Road segments (for both growth scenarios). o The most noticeable change (-1 dBA) is observed along Bay Road between University Ave and Pulgas Street. Other segments that experience a 1 dBA decibel decrease include Clarke between Bay and Runnymede, Demeter Street, and Tara Street.
o The traffic noise along the majority of University Avenue is unaffected by the Loop Road. The same holds for Weeks and Pulgas Streets.

The question before City Council is whether to include the Loop Road as a required transportation improvement in the updated Specific Plan, SEIR, and City’s Capital Improvements Program. Including the Loop Road has a substantial impact on the Transportation Impact Fee (TIF), increasing the maximum justifiable transportation impact fee by approximately 30 percent for RBD development according to the Willdan Nexus Study Update (June 4, 2024). Staff recommends that the Loop Road be removed as a required transportation improvement from the Specific Plan and moreover, be removed from the list of projects funded by the TIF, primarily due to the high costs and difficulty of funding the improvement when compared with the marginal benefits, in addition to the constrained right-of-way and expected challenges with adjacent jurisdictions (SFPUC, Menlo Park, the Don Edwards Nature Reserve, Midpeninsula Open Space, etc.). Adding additional traffic/turn lanes at the University and Bay intersection is a more feasible mitigation for accommodating the added traffic, from a right-of-way standpoint and from a construction costs perspective. Staff recommends that the Loop Road remain in the Specific Plan only as a conceptual alternative improvement, but not a required one.

Review of Key Impacts and Benefits, Beyond CEQA
While CEQA includes many resource topics and potential impacts, there are several areas of interest to the City and the community that are not part of the Environmental Impact Report. These include:
1) traffic congestion or level of service (LOS) impacts, since CEQA now focuses on a metric called Vehicle Miles Traveled (VMT),
2) impact fees and fiscal revenues,
3) a greater level of analysis concerning wet utility infrastructure, 4) indirect displacement and other secondary effects on housing affordability, 5) visual and placemaking ramifications for the neighborhood, and 6) projected employment opportunities and impacts.

These topics were reviewed by the consultant team outside of the CEQA process, to provide a full picture of the effects of updating the Specific Plan. 175
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Overall, for these non-CEQA topics, the difference in impacts between the two scenarios is generally linear, i.e., 10-15% greater under the larger scenario. From a public standpoint, the impacts of the two proposed scenarios are quite similar – however, there would be a tangible difference in the perception of impacts between the adopted 2013 Specific Plan and either scenario analyzed for the updated Plan/SEIR. 1) Traffic Congestion
• Traffic congestion is forecasted to substantially increase in EPA in 2040 due to regional growth even if nothing is built in RBD. Planned and projected growth in neighboring jurisdictions and in the broader south Bay region would generate a large increase in future trips cutting through EPA.
o There would be longer periods of daily delay along local roadways which already have high levels of congestion during peak hours. o The City has been and will continue to take steps to discourage cut-through traffic, such as the mini roundabouts that have been installed in Weeks. • Development in the Plan Area would cause a noticeable amount of regional cutthrough traffic to be replaced by local EPA-serving traffic. Since key roadways and intersections are already congested, the composition of who is using the City’s roads changes as varying amounts of development occurs in RBD/4 Corners. • New development funds infrastructure improvements that would be expected to reduce delay at key intersections (both RBD and citywide, such as at Highway 101).

Scenario Comparison and Conclusion
• Scenario 1 results in the about the same number of total trips compared to the 2013 Specific Plan EIR since this Plan was adopted before the Transportation Demand Management (TDM) Ordinance was adopted, while the larger growth scenario (2) results in 12% more average daily vehicle trips compared to the 2013 EIR.
o The modeling predicts a total of 35,911 trips under Base Scenario, 34,105 trips under Scenario 1, and 38,281 trips under Scenario 2. o Marginal impacts of RBD-generated traffic are relatively small, except for a few locations (such as Pulgas Road and Clarke Ave) that would require mitigations/improvements.
• Scenario 2 requires four (4) additional traffic signals compared to Scenario 1.

Clarke and Bay Road, Newbridge Street and Bay Road, Clarke and Garden Street, Pulgas Ave and Weeks Street. The additional eight (8) improvements required for the updated Plan scenarios (compared to the adopted 2013 Plan) are signalizations of:
o Newbridge and Bay Road (Scenario 2 only)
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o Clarke Ave and Bay Road (Scenario 2 only)
o Clarke Ave and Garden Street (Scenario 2 only)
o Clarke Ave and Runnymede Street
o Pulgas Ave and Runnymede St
o Pulgas Ave and O’Connor St
o Pulgas Ave and Weeks Street (Scenario 2 no Loop only) o University and Purdue (if no Loop Road is built) or University and Loop Road (if a Loop Road is built)
• The traffic impacts do not differ significantly between any of the Scenarios. With the construction of required improvements, adverse congestion effects still remain on nine (9) intersections under Base Scenario, eleven (11) intersections under Scenario 1, and 12 intersections under Scenario 2.
• Daily traffic impacts on University Ave are not very significant, even under the largest growth scenarios.
o University Ave does not show much increase in traffic with increased development in RBD because it is currently operating very close to maximum capacity (and therefore “constrained”).
o Without any future growth in the RBD, average daily traffic on University Ave north of Bay Road is projected to increase by 12% or 3,500 trips.

Scenario 1 represents a 1% decrease from No Growth, while Scenario 2 shows a 1% increase from No Growth (less than 250 trips). o The two scenarios do add progressively more local EPA traffic on University Ave but through traffic actually declines since the roadway is at capacity for most of the day and therefore deters regional through traffic, resulting in essentially no difference in total daily traffic compared to No Growth. o The Loop Road slightly reduces traffic volumes on University north of Bay Road since it diverts trips off of University Avenue (around -7%). • Under all scenarios, substantial increases in delay are seen at locations which had low volumes to begin with. The most notable traffic impacts from development in the RBD are on Bay Road, on Pulgas, on Clarke, and on Runnymede. The overall impacts to these roadways are not directly proportional to the amount of development in the RBD, due to the significant increase of through regional traffic by 2040.
• Bay Road traffic conditions would be affected to a large degree by the RBD development scenario and whether the Loop Road is completed (as thru traffic on Bay Road comprises a smaller percentage of trips).
o Compared to today, the No Growth scenario projects a 38% increase on Bay Road daily traffic (+6,500 vehicles).
o Traffic on Bay Road is about 10% greater under Base Scenario, 18% greater under Scenario 1 (+4,500 vehicles) compared to No Growth, and 22% greater under Scenario 2 (+5,000 vehicles) compared to No Growth.

Thus, the increase in traffic from regional cut-throughs is greater than the 177
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increase resulting from RBD development under both scenarios. However, this still represents a major change compared to current conditions; under Scenario 1, traffic would increase by 60% compared to today, and by 65% under Scenario 2.
o The Loop Road takes 3,500-4,000 vehicles off Bay Road, depending on the scenario. The Base Scenario with Loop Road has the smallest traffic volume increase on Bay Road (approximately 1,500 vehicles). The reduction of traffic on Bay Road is arguably one of the most clear benefits of building the Loop Road.
• Pulgas Avenue is expected to see a large increase in traffic regardless of what happens in the RBD, with the majority of it being through traffic (over 80%). o Without future growth in the RBD, average daily traffic on Pulgas Ave south of Bay Rd increases by over 50% (in part more traffic avoids University Ave).

This is about 4,500 vehicles per day.
o Base Scenario increases traffic by about 3% or 700 vehicles per day compared to No Growth, Scenario 1 would further increase traffic on Pulgas Avenue by 7% over No Growth (1,000 vehicles per day) and Scenario 2 about 10% over No Growth (1,200 vehicles per day).
o A notable increase in delay is expected at Pulgas and Bay Road under No Growth, Base Scenario, and both SEIR scenarios. Current delay at this intersection is 32 seconds. The total projected delay is 26 seconds for the no growth scenario (reduced delay), 35 seconds for the base scenario (+11 seconds delay), 47 seconds for Scenario 1 (+15 seconds delay) and 52 seconds for Scenario 2 (+20 seconds delay).
o The construction of the Loop Road incentivizes additional traffic volumes along Pulgas, increasing it by about five percent.
o Even without any growth in the RBD, Northbound Pulgas Avenue at Bay Road would see the duration of congestion extend from 1 to 6 hours (2 – 8 PM). “Duration of congestion” is defined as times of the day during which drivers cannot make it through an intersection in one signal cycle. This same increased duration of congestion is predicted for Scenario 1 and 2 at Pulgas and Bay Road. Signalization and addition of a westbound left turn lane would reduce duration of congestion, and delay while waiting at the intersection.
• If development in the RBD contributes its proportional share of transportation impact fees to complete key transportation improvements, delays around the Highway 101 interchange could actually decrease. Due to planned intersection improvements around the interchange, modeling predicts that overall delay would decrease from existing conditions at the two nearby intersections, though the RBD scenarios do cause some increase in delay compared to No Growth. At this time, these improvements are not fully funded, and therefore the delays would be greater than modeled if the improvements were not constructed. Transportation Impact Fees from development in RBD would be leveraged to partially fund these 178
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capital improvements, with the RBD representing a major source of future funding (but not the sole source).
2) Impact Fees and Fiscal Revenues
• Impact fees generated in the RBD would be proportional to their impacts and would pay for physical improvements that would benefit the Plan Area and the entire city.

The impact fees are tied to identified facilities and improvements throughout the city including new roadway improvements, new water infrastructure to serve development and to provide adequate fire flow, new stormwater infrastructure, new parks and trails facilities, and new public facilities such as City Hall, police station, and library. While the improvements address the impacts of new development, they would also benefit existing residents.
• Impact fees vary significantly by land use, in proportion to their relative impact on the community, with office and R&D paying double the rate of industrial. The City’s fee structure charges the highest amount to office and R&D development. Thus, allowing primarily industrial development in the RBD would significantly reduce the total amount of impact fees paid to the City.
• Fiscal revenues may be lower than projected for any number of reasons, including if the market does not rebound and higher-density development remains infeasible (in this case additional fees would not be obtained), or if the reduced development capacity (and lowered maximum FARs) available under the Base Scenario or Scenario 1 renders higher-intensity developments infeasible.

Scenario Comparison & Conclusions
• All three of the scenarios (1.44 m.s.f., 2.82 m.s.f., and 3.35 m.s.f.) are strongly fiscally positive, generating more revenues than costs overall to the City (based on increased future projected property and sales taxes). New development in the RBD area has the potential to increase the City's General Fund revenues by between 65% and 93% (from $26.6M in FY 2020-21 to $44M/$47M/$52M) nearly doubling City General Fund revenues under the largest scenario.6 Note that these figures ill be updated in the revised Fiscal Impact Report to accompany the final Plan/SEIR. • Since most impacts fees are tied directly to square footage, larger development scenarios could generate proportionally higher net revenues for the City, supporting a healthier General Fund. The net increase in the annual City General Fund is $8M under Base Scenario, $14M under Scenario 1, and $16.5M under Scenario 2 (as expenditures also rise, the net difference is more important to the City than total raw revenues). Net fiscal/tax revenues under Scenario 2 are projected to be around 15% higher than under Scenario 1. 6 http://eastpaloalto.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=1383&Inline=True 179
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Figure 2: Annual Net General Fund Impact by Scenario
Source: Fiscal Impact Report, Attachment to the November 2021 Council Staff Report (by Strategic Economics); http://eastpaloalto.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=1400&Inline=True 3) Wet Utility Infrastructure
• Wet infrastructure includes potable water for drinking or emergency response such as fire-fighting, as well as the sanitary sewer system, and the storm drainage network. Storm drainage improvements are is a major issue for the RBD given the need to adjust the collection system for the SAFER Bay levee, upgrade the Cooley Landing pump station, and add two smaller pump stations in the RBD.

Scenario Comparison & Conclusions
• With improvements identified in the Plan, the water conveyance and storage system would be adequate for both Project scenarios.
o The City has sufficient water supply for both Project scenarios. • With improvements identified in the Plan, the storm drainage system would be able to handle either scenario.
o Both scenarios would be accompanied by improvements that would significantly improve flooding in the existing (deficient) system/surrounding neighborhood areas of University Village and Weeks.
o The Specific Plan UIS identifies the need for upgraded and new pump stations which are significant improvements with a total estimated cost of nearly $40 million.
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• With improvements identified in the Plan, the sanitary sewer system can handle the volumes from either Project scenario, with the following constraint:
o Both scenarios would require the acquisition of additional treatment capacity from the Palo Alto Regional Water Quality Control Plant to service the sanitary sewer volumes produced by new development in the Plan Area, combined with a full buildout of the 2035 General Plan. o Additional upgrades to sanitary sewer system will be required for the Plan Area; a nexus study to confirm the required CIP projects and development impact fee is pending,
• The larger scenario results in a slightly lower cost per square foot for developments which would improve their financial feasibility. Allowing for higher development capacity would reduce impact fees for RBD and non-RBD development without reducing potential revenue by spreading out the project costs among more development, although the difference in the per square-foot rates would only be slight (between 1% and 10% lower depending on the fee and land use).

Table 4: Comparison of Impact Fees by Scenario
Impact Fee Potential fee increase for
Scenario 1, relative to current
impact fee
Potential fee increase for
Scenario 2, relative to current
impact fee
Parks and Trails 159% to 266% 150% to 256%
Public Facilities 22% to 75% 19% to 71%
RBD Transportation 7% to 168% 6% to 163%
RBD Water Capacity -45% -54%
RBD Storm Drainage 93% 93%
4) Indirect Displacement & Housing Affordability
• EPA has experienced recent gentrification even without any new development in the RBD (Monthly rents rose by 60% from $1,720 in 2011 to $2,750 in 2021).

Research shows that large-scale commercial development can increase pressure on nearby housing.
• Regardless of future development in the RBD, indirect gentrification pressure will continue. The City is a pocket of affordability within an extremely high-value real estate region with high job growth. Anecdotal evidence shows that single-family homes in East Palo Alto are attracting tech workers, who can afford to pay higher rents, putting upward pressure on housing costs more generally. Adjacent jurisdictions in the region have approved millions of square feet of commercial development, including Menlo Park, Sunnyvale, San Jose, and Mountain View.

Scenario Comparison & Conclusions
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• Under all scenarios, EPA will continue to be subjected to regional forces of displacement / decreasing housing affordability; these forces will only intensify over time. In other words, all growth scenarios will put some pressure on EPA’s housing affordability. Research shows that some neighborhoods located in close proximity to large new technology campuses have experienced housing price increases. However, it is not possible to specifically quantify the marginal differences between each scenario. Ultimately, regardless of the scenario, there will be a significant gap between what new workers will be able to afford to buy or rent and what East Palo Alto residents can currently afford to pay (based on analysis conducted by Strategic Economics); office and R&D workers likely can afford market-rate prices, whereas the majority of East Palo Alto residents cannot. • However, new development would provide explicit mitigations aimed at reducing gentrification impacts on the community.
o New affordable deed-restricted units would be constructed in RBD through the City’s inclusionary housing program or developers partnering with affordable housing developers to build deeper targeted affordable housing. o Between $33M (Scenario 1) to $40M (Scenario 2) would be provided in fees for affordable housing through the commercial linkage fee ($16.7M for Base Scenario). These fees could be used to construct new affordable housing or the acquisition/improvement of existing affordable units. o Between $7M (Scenario 1) to $8.4M (Scenario 2) would be provided in annual Measure HH fees for affordable housing and job training ($3.5M under Base Scenario).
o Over ten years, this combination of one-time and annual funding could provide funding to enable construction of several hundred additional affordable units.

The exact number of units is difficult to predict, given the uncertainty inherent in nonprofit/affordable housing construction. The largest scenario would have the highest potential Measure HH revenues on an ongoing, annual basis. • It is not possible to quantify the exact amount of displacement that would result from a given amount of development, but it is logical that the larger scenario (2) could have a proportionately larger impact compared to the smaller scenario (1) or Base Scenario. On the other hand, the larger scenario could generate greater Measure HH revenues and a correspondingly greater contribution towards community benefits - both of which can be leveraged to provide housing to mitigate potential indirect displacement.
5) Visual Impacts and Placemaking
• Community members expressed concern at virtually all public engagement opportunities and forums about the potential impacts on privacy, access to sunlight, and neighborhood visual character.

Scenario Comparison & Conclusions
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• It is not possible to know exactly where buildings will be placed or massing will be located, given that developments have yet to be approved. From a building floorplate standpoint, Scenario 1 represents approximately 90 floors of new development, while Scenario 2 represents about 110 floors. o The visual impacts of the various growth scenarios are dependent on the actual height and location of the buildings. As the amount of development increases, the buildings become larger, with the majority of buildings between 4 and 8 stories in the larger scenario. This level of development would result in a much more intense district than the rest of the city. There are, however, many examples of well-designed office and R&D districts at the scale of development allowed in Scenarios 1 and 2.
• The Specific Plan contains a set of stepback standards, along with other objective standards, which would apply to both Scenarios which are intended to mitigate visual impacts in the most sensitive locations (areas adjacent to residential neighborhoods and habitats). Lower height limits are also proposed for zoning districts located closer to residential neighborhoods.
• The overall placemaking potential (i.e., the number and variety of active gathering places or destinations) increases exponentially as the amount of development increases. The Base Scenario level of development (1.4 million s.f.) would have limited placemaking potential because there would be fewer buildings and significantly less ability to subsidize active, community-oriented and retail frontages. Whereas Scenarios 1 and 2 would have far higher placemaking potential since there are higher-density buildings with a larger employment population to support complementary uses such as eating, retail, recreation, and service establishments, and to further activate the the public realm. These uses can also benefit existing residents.
6) Local Employment
• Given the downturn in the commercial office market, both scenarios are likely to result in a greater number of middle-wage jobs (related to life science and laboratory uses) and lower-education jobs (for manufacturing, production, and maintenance uses) than originally projected. Flex/light industrial jobs would offer more opportunities for workers lacking post-secondary education.

Scenario Comparison & Conclusions
• All scenarios could substantially increase the City’s employment base. The City has had a chronic jobs/housing imbalance (at present 0.3 jobs/employed resident or 0.5 jobs/housing unit) which is one of the lowest in the State. The total number of new potential jobs ranges from about 5,000 under Base Scenario to 10,000 under Scenario 1 to more than 12,000 under Scenario 2 (compared to 4,100 existing EPA jobs).
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• Existing City programs and policies already address some of the challenges related to inadequate local employment and job training. The city recently passed the Measure HH in 2018, to ensure that new developments contribute to growing mismatch between higher-skilled industries and residents’ skillsets. The Plan Area represents a major source of Measure HH funding.
o Both updated scenarios would be supported by a Community Benefits Bonus Tiers Framework in the updated Specific Plan that provides FAR incentives for higher-density developments that offer job training space or programs for residents or business start-up spaces. If the City chooses not to adopt the Specific Plan update and thus continues to operate under the Adopted 2013 Specific Plan and EIR, the proposed new Benefits Framework would not be available to secure these benefits to local employment.

Scenario Selection & Benefits Framework (FAR, Tiers, and Targets) • Since the larger Scenario (#2) has more square feet, it has the potential to produce more total funds for community benefits. The larger Scenario has the potential to capture greater benefits for the community since it allows for the potential of more higher-density developments – if more higher-density projects are developed (which is not guaranteed given market conditions), there would be a tangible difference in how the benefits would be perceived by the community. • The proposed framework is carefully calibrated so that the FARs for the Standard and Exemplary Tiers allow progressively higher-density development with correspondingly more benefits from the higher-density projects. Staff would like to clarify that there are ramifications to the proposed Benefits Framework if Council selects the smaller scenario (2.82 million square feet). The Benefits Framework (and its FARs, Tiers, and Targets) is set up such that Base Tier projects represent lower-density development (2-4 stories), Standard projects represent middledensity development (4-6 stories), and Exemplary projects would be the highestdensity development (at 6-8 stories) Figure 3: Proposed FARs and Tiers
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Figure 4: Proposed Framework Targets
• As currently proposed, all four major project applicants (Emerson, Harvest, Sandhill, and 2020 Bay Rd) could be entitled and build projects at the Standard Tier. However, all four major project applicants cannot build Exemplary Tier projects – this would represent more than the 3.35 million square feet (m.s.f.) of capacity being analyzed, as all applicants have proposed projects that would fall under the Exemplary Tier (though not necessarily at the maximum FAR).

Practically the result is that some major applicants could be entitled at the Exemplary Tier but others would be limited to the Standard (or Base) Tier, since the development capacity would have been used by other projects. Assuming that 185
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the City wishes to allow for a pathway for all applicants to earn at least the Standard Tier, if the 2.82 m.s.f. scenario is selected, either the tiers, the associated FARs, or the targets would need to be adjusted to reflect the correspondingly smaller capacity, by either:
o Losing the ability to offer the Exemplary Tier and obtain the associated highest tier benefits;
o Decreasing all FARs in the framework proportionately to a level staff believes could make current and future higher-density development infeasible; or
If the City is not concerned about maintaining the ability for all four major projects to be entitled at Standard or higher, then the three Tiers and maximum FARs in the framework could be kept as proposed even under a 2.82 m.s.f. scenario – the City would be anticipating that several major projects come in at the Base Tier (in the short-term), freeing up capacity for Standard and/or Exemplary projects in the distant future for the remaining major applicants. This could also lead to an outcome where several early Exemplary projects deplete nearly the entire capacity, leaving longer-term owners without the potential for anything other than a Base Tier project.

A final option would be to adjust, i.e., lower the benefits targets to make it easier for higher-density developments to meet the requirements. Staff does not recommend this approach, as it reduces the amount of benefits received but does not reduce the impacts on the community.

Table 5: Relationship between FAR/Tiers and Development Capacity Only Base
Tier
Mostly Base
Mix of Base +
Standard
All Standard
Tier
Mostly Standard
Mix of Standard
+ Exemplary
All Exemplary
Tier
Emerson,
Harvest,
Sandhill,
and 2020
Bay Rd 1,600,000 2,200,000 2,700,000 3,250,000 4,120,000 Job Train
(entitled) 108,000 108,000 108,000 108,000 108,000

1.7 msf 2.3 msf 2.82 msf 3.35 msf 4.2 msf
(Studied as
Scenario 1)
(Studied as
Scenario 2)
(Eliminated by
Council in 2021)
Figure 5: Revised FAR/Tiers under Scenario 1 (2.82 million square feet) 186
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• The economics of commercial office development projects have weakened considerably, potentially undermining the ability of the City to partner with developers to include community benefits with their office/R&D development projects. Realistically, the City should expect to wait 5 to 15 years to see most major developments. An excess of vacant commercial space, changes to interest rates and labor/material prices have increased costs on the front end, while ongoing and anticipated shifts in employment away from traditional office and tech firms to more remote work, life science and labs, and advanced manufacturing has reduced the projected rents that a project can realize. • During high market times (with low interest rates), higher-density developments support higher residual land values. However, at this time in a lower market with higher interest rates, lower-density developments are what the market supports. o It is not possible to know how much office/R&D development will actually occur or when. However, staff still believes there is value in selecting the larger scenario to allow the city more flexibility, creating a plan that enables a wider possible range of outcomes (between mostly lower-density and mostly higher-density). Approving the larger scenario does not guarantee

3.35 million square feet is actually developed, but it allows for the possibility of obtaining a higher total amount of community benefits without needing to revise the Specific Plan again. Permitting more higher-density development also increases the fiscal benefits received by the City over the long run (higher property values).
• Through the application of standards in the updated Specific Plan and required CEQA mitigations, the City would ensure that both the lower and higher-density development outcomes achieve as many of the community’s goals/desired objectives as possible. This process of ensuring that the community’s desired 187
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development outcomes are achieved can be done in different ways, including accepting some slightly greater impacts for potentially more community benefits.

Table 6: Comparison of Lower-Density and Higher-Density Development

EXEMPLARY
TIER

EXEMPLARY
/ STANDARD
TIER

BASE TIER
Office R&D/Lab
(higherdensity)
R&D/Flex
(lowerdensity)
Industrial
Job Density (per sf) Very High
(250-333
S.F. / job)
Moderate
(400-500
S.F. / job)
Low (500-700
S.F. / job)
Very Low
(600-1,000
S.F. / job)
% of Jobs Requiring PostSecondary EducationHigh High Moderate Low Market Demand and
Feasibility (short-term)
None Low Low Moderate
Market Demand and
Feasibility (long-term)
? High Moderate Moderate
Potential for Community
Benefits Contribution
High Moderate Low Very Low
• Staff is recommending that the Specific Plan be implemented with the larger of the two scenarios analyzed under the SEIR (Scenario 2, or 3.35 million square feet of office/R&D space), to better accommodate the proposed FAR Tiers & Benefits Framework and to allow for the establishment of two tiers of bonus FAR to maximally incentivize the provision of community benefits. This larger capacity also permits a greater amount to be held in reserve for minor projects. Through the Council’s future application of the Framework, this additional development capacity could be leveraged for more benefits than the impacts incurred by this additional growth.

Pros of Selecting the Larger Development Scenario
o More square footage can be held in reserve for Small Projects o Allows for the potential of more/mostly higher-density development, an outcome which would capture a higher amount of community benefits o Provides the City more flexibility to respond to future market conditions (that support higher density)
o Slightly reduced per-square feet impact fees for utilities o Significantly more place-making potential
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o Higher economic development and employment potential depending on the type of commercial uses
o Potential for increased fiscal benefits for the City
o More support for complementary land uses that could also benefit residents.

Cons of Selecting the Larger Development Scenario
o Slightly more impacts to the community relative to air quality, noise as far as CEQA is concerned
o Slightly more impacts from a non-CEQA standpoint relative to and traffic congestion, indirect displacement, and visual impact Table 7: Trade-offs between Lower-Density and Higher-Density Development Mostly BASE Tier Projects Mostly EXEMPLARY Tier Projects ~2.1 million square feet office/R&D 3.35 million square feet office/R&D

0.5 – 0.75 FAR 1.0 – 2.0 FAR
• Fewer benefits • More benefits
o Less affordable housing o More affordable housing
o Fewer/no community spaces o More community-serving spaces o Fewer public parks/plazas o More public parks/plazas
o Less activation o More activation
o Fewer transportation
improvements
o More transportation improvements
• Fewer impacts • More impacts
o Fewer vehicle trips o More vehicle trips
o Fewer air pollutants /noise o More air pollutants /noise o Smaller buildings o Larger buildings
• Revenues come earlier, but less
revenues overall
• Revenues come later, but more
revenues overall
• Fewer jobs overall • More jobs overall
o More lower- & mid-education jobs o More mid- & upper- education jobs Ultimately, the decision regarding which Tier or intensity to develop at is up to the property owner; however, the Framework’s Tiers and FARs combined with a limited development capacity will influence applicant’s decisions about how to develop their properties.

Summary of Impacts and Benefits with respect to Scenario Selection • Overall, the difference in impacts between the two SEIR study scenarios is fairly minimal, which the DSEIR (Draft Subsequent Environmental Impact Report) analyzes in more detail. Mitigations for traffic are substantially the same, and utility mitigations are scaled proportionally as appropriate. In general, the larger development scenario would be expected to provide more City revenues, more impact fees, and result in the provision of greater community benefits overall, particularly if the Council utilizes its discretionary power to allocate more square footage to projects which align best with the identified community benefits targets. 189
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• The proposed Community Benefits Framework works in either scenario but is more beneficial in the larger scenario (though some of the proposed timing may need to be lengthened for entitlements/allocations). The nexus feasibility study confirms that development projects are extremely challenging to finance and construct in the short-term but existing conditions do not negate the proposed framework approach which is that lower-density development is expected to support fewer benefits, while the City will continue to expect more benefits from higher-density developments in the future when the market supports these projects. • Ultimately, the Council has a policy decision to make about future development in the RBD, whether to allow lower-density/industrial development sooner to realize immediate economic benefits, or to prioritize higher-density projects with the potential for greater but delayed economic and community benefits o Staff suggests considering adding a policy that monitors the total overall amount of flex/industrial/advanced manufacturing development in the Plan Area.
o To reiterate, staff does not recommend lowering or reducing the community benefits expectation for higher-density development – the City can wait until the market rebounds, in order to maximize the benefits from more impactful (i.e., larger-scale/higher-density) projects.

Next Steps and Timeline
The Public Draft Specific Plan was released on April 5, 2024. City Council was asked to provide feedback and initial comments on the Draft Plan on April 25, 2024. Public comments on the Specific Plan will be accepted through July 26, 2024.

The public draft of the Subsequent Environmental Impact Report (DSEIR) related to this project is scheduled to be released on July 26th. Subsequently:
• Staff will be providing an update on implementation of the Transportation Demand Management (TDM) Ordinance on September 3rd, 2024.
• Public comments will be accepted during a 45-day review period through approximately September 10th, depending on the exact date of DSEIR release. • A Planning Commission meeting would occur during the DSEIR public review period, likely on September 9th.
• Council will be asked to provide final direction on the maximum development scenario at a study session at a late September regular Council meeting. • The Final DSEIR would be released on October 11th, pending the completion of the response to public comments.
• Tentatively, a public hearing would be scheduled at Planning Commission for November 18th, 2024 to seek a recommendation regarding certification of the DSEIR and adoption of the Specific Plan.
• Following Planning Commission, City Council hearings on the adoption of the Plan and certification of the SEIR will begin, tentatively on December 3rd, 2024. Followup rezoning will be considered concurrently with Plan adoption. 190
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Key Discussion Questions for Council

1. Do you have any questions about the draft mitigation measures or impact findings of the SEIR?

2. Does Council agree with staff’s recommendation to remove the Loop Road as a required improvement and thus not be included in the calculation of the Transportation Impact Fee (TIF)?

3. Does Council agree with staff’s recommendation to add a policy monitoring (but not limiting) the amount of industrial/flex/advanced manufacturing-type projects being built in the Plan Area?

4. Does Council support the staff recommendation to move forward with the proposed community benefits framework coupled with the larger growth scenario (Scenario 2, 3.35 million square feet) to give the City more flexibility in the future? Fiscal Impact
There is no fiscal impact to the City from this staff report. In 2020, the City hired Raimi and Associates (R+A) to facilitate the update to the Specific Plan. The R+A contract is split into two parts: 1) Data Refresh, Analysis, Community Engagement, and 2) Environmental Review. The City Council appropriated $998,472 funds to cover part 1 of the R+A contract ($490,164 initially + $99,000 contingency, and then an added $508,308 amended on January 18, 2022). Three developers (Sandhill, Harvest, and Emerson) have contributed installments towards the reimbursement of the environmental review portion (Part 2: totaling $737,665) of the R+A contract. A second and final amendment for the amount of $180,000 was approved by City Council on July 18, 2023 to fund the remaining work on the Specific Plan Update. The total cost of this project has been amended twice and is not to exceed $2,015,137. Any project that benefits from a future update to the RBD Specific Plan would be required to reimburse the City for all Plan Preparation expenditures on a proportional square foot basis. When the developers submit their payments to reimburse the City, it would also include a 10% administrative fee to cover city overhead.

Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto. Additionally, the public was provided electronic advance notice of the study session through a notification sent from the City’s email contact database which contains hundreds of resident and stakeholder emails.

Environmental
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POLICY AND ACTION ITEM 6.1
When the DSEIR public comment period begins July 26, 2024, a Notice of Availability (NOA) will be distributed as required by CEQA law, and the document will be posted on the project website. After the 45-day public comment period ends, the City will consider and respond to substantive comments received on the draft SEIR and compile a response to comments document. Once the responses and revisions are complete, a Final SEIR will be released, consisting of the response to public comments on the draft SEI and outlining any updates or revisions to the DSEIR. The final SEIR will be considered by the City Council for certification in compliance with CEQA.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not yet involve an entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. SEIR Executive Summary Section (Includes summary of mitigation measures) Glossary
RBD. Ravenswood Business District, the primary area within the Plan (in addition to Four Corners).

SPU. Specific Plan Update, or “this project.”
SEIR. Subsequent Environmental Impact Review, the legally required environmental study and analysis of the potential impacts of new development.

DSEIR/FSEIR. Draft and Final SEIR documents.

CEQA. California Environmental Quality Act, the State law requiring EIRs.

FAR. Floor Area Ratio, or a measure of how large/intense a development is.

SFCJPA. San Francisquito Creek Joint Powers Authority, the entity that is leading the SAFER Bay flood control effort.

BCDC. Bay Conservation and Development Commission, a body that reviews and approves developments located adjacent to the Bay.

EPASD. East Palo Alto Sanitary District, the entity which currently provides sanitary sewer services in the City and oversees the sewer infrastructure.

R&D. Research and Development, a broad land use category that encompasses a variety of scientific/technical, medical/pharmaceutical, and laboratory/life science uses.

S.F. Square feet, a common measurement of a development’s total interior building size.

R+A. Raimi + Associates, primary consultant overseeing the Specific Plan Update. 192
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Draft SEIR Executive Summary
(Includes summary of mitigation measures)
The City of East Palo Alto, as the Lead Agency, has prepared a Draft Subsequent Environmental Impact Report (SEIR) for the Ravenswood/4 Corners Transit-Oriented Development Specific Plan Update (Specific Plan Update) in compliance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines.

As the CEQA Lead Agency for this Specific Plan Update, the City of East Palo Alto is required to consider the information in this Draft SEIR along with any other available information in deciding whether to approve the Specific Plan Update. The basic requirements for an EIR include discussions of the environmental setting, significant environmental impacts including growth-inducing impacts, cumulative impacts, mitigation measures, and alternatives. It is not the intent of an EIR to recommend either approval or denial of a project.

Summary of the Project
The City adopted the existing Ravenswood Specific Plan in 2013 (2013 Specific Plan). This plan provides a policy and regulatory framework for reviewing development projects and public improvements in the Specific Plan area. The 2013 Specific Plan allows for development of up to 1.3 million square feet of office/R&D uses, 175,820 square feet of industrial uses, 112,400 square feet of retail uses, 36,000 square feet of civic/community uses, and 835 housing units (comprised of 816 multifamily and 19 single-family units). The 2013 Specific Plan assumed there would be a loop road with a multi-use path that would be located along the perimeter of the northern portion of University Village (immediately to the west of the Specific Plan area) and extend from the existing terminus of Demeter Street to connect with University Avenue. As currently envisioned, the loop road configuration would be a 76-foot right of way along the northern perimeter and 56-foot right of way along the western perimeter and would include two travel lanes, along with a 14-foot wide multi-use path and associated shoulders and buffers. The loop road would provide a direct route between the Specific Plan area and University Avenue, avoiding the need to use Bay Road. The loop road could also be used for emergency evacuation, in accordance with state requirements, and provide emergency vehicle access.

An update to the Specific Plan (Specific Plan Update) is proposed and would increase the total amount of development allowed within the Specific Plan area by increasing the maximum square footages for office, R&D/life science, light industrial, civic/community, and tenant amenity, and the total number of residential units allowed under the Specific Plan.

The Specific Plan Update would be implemented as one of two development scenarios, both of which are evaluated in the SEIR:
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• Scenario 1 would consist of an additional 1,802,950 square feet of office space, 988,400 square feet of R&D space, 250,000 square feet of industrial space, 129,700 square feet of civic space, 112,400 square feet of retail space, 43,870 square feet of tenant amenity space, and 1,350 residential units.
• Scenario 2 would consist of an additional 2,135,100 square feet of office space, 1,167,250 square feet of R&D space, 300,000 square feet of industrial space, 129,700 square feet of civic space, 112,400 square feet of retail space, 53,500 square feet of tenant amenity space, and 1,600 residential units.

In addition, the Specific Plan Update proposes a multi-use path along the northern and eastern perimeter of the Specific Plan area with an option to have a loop road and an option without the loop road. The multi-use path and loop road would continue to be located and function as discussed above under the 2013 Specific Plan. Refer to Section 2.0 of this Draft SEIR for a further description of the Specific Plan Update.

Summary of Significant Impacts, Mitigation Measures, and Proposed Specific Plan Update Policies
Table ES-1 below contains a summary of the significant environmental impacts identified and discussed in the EIR, and the mitigation measures and Specific Plan Update Policies proposed to avoid or reduce those impacts. The project description and full discussion of the impacts, mitigation measures, and Specific Plan Update Policies can be found in Section 2.0 Project Information and Description, and Section 3.0 Environmental Setting, Impacts, and Mitigation of this EIR, respectively.

Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy Air Quality
Impact AIR-1: Future projects
under the Specific Plan Update
could result in construction criteria
pollutant emissions above
BAAQMD thresholds resulting in a
cumulatively considerable
contribution to a significant
regional air quality impact. (Less
than Significant Impact with
Mitigation Measures
Incorporated)
MM AIR-1.1: Construction criteria pollutant and TAC
quantification shall be required for individual projects developed under the Specific Plan Update once construction equipment and phasing details are available through modeling to identify impacts and, if necessary, include measures to reduce emissions below the applicable BAAQMD construction thresholds. Reductions in emissions can be accomplished through, not limited to, the following:
• All construction equipment larger than 25 horsepower
used at the future development sites for more than
two continuous days or 20 hours total shall meet U.S.

EPA Tier 4 emission standards for NOx and PM (PM10
and PM2.5), if feasible, otherwise,
• If use of Tier 4 equipment is not available,
alternatively use equipment that meets U.S. EPA
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy emission standards for Tier 2 or 3 engines and
include particulate matter emissions control
equivalent to CARB Level 3 verifiable diesel
emission control devices that altogether achieve
an 85-percent reduction in particulate matter
exhaust in comparison to uncontrolled
equipment; alternatively (or in combination).
• Use of alternatively fueled equipment with lower
NOx emissions that meet the NOx and PM
reduction requirements above.
• Special equipment that cannot meet the above
requirements must be approved as exempt by
the City after considering reasons for requesting
an exemption.
• Use electric equipment such as aerial lifts, air
compressors, cement mortar mixers,
concrete/industrial saws, cranes, and welders.
• Diesel engines, whether for off road equipment or on
road vehicles, shall not be left idling for more than two minutes, except as provided in exceptions to the
applicable state regulations (e.g., traffic conditions, safe operating conditions). The construction sites shall have posted legible and visible signs in designated queuing
areas and at the construction site to clearly notify
operators of idling limit.
• Provide line power to the site during the early phases of construction to minimize the use of diesel-powered
stationary equipment.
• Utilize low volatile organic compound (VOC) (i.e., ROG emitting) coatings, that are below current BAAQMD
requirements (i.e., Regulation 8, Rule 3; Architectural Coatings), for at least 80 percent of all residential and nonresidential interior paints and 80 percent of
exterior paints. This includes all architectural coatings applied during both construction and reapplications
throughout the project's operational lifetime. At least 80 percent of coatings applied must meet a "supercompliant" VOC standard of less than 10 grams of VOC per liter of paint. For reapplication of coatings during the project's operational lifetime, the Declaration of
Covenants, Conditions, and Restrictions shall contain a stipulation for low VOC coatings to be used. Examples
of "super-compliant" coatings are contained in the
South Coast Air Quality Management District's website.

Impact AIR-2: At buildout for
development Scenarios 1 and 2,
Proposed Specific Plan Update 8-4.1: General TDM
Requirements
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy Specific Plan Update operational
criteria emissions would exceed the
BAAQMD project-level significance
thresholds, for both average daily
and total annual emissions, for
ROG, NOx, and PM10 emissions,
with or without the loop road,
resulting in a cumulatively
considerable contribution to a
significant regional air quality
impact. (Significant and
Unavoidable Air Quality Impact)
• Standard 1: 40 percent Trip Reduction Requirement.

Per the City’s TDM ordinance, the daily trips generated by new developments in the Plan Area are required to
be 40 percent below trip estimates developed based on
rates published in the Institute of Transportation
Engineers’ (ITE) Trip Generation Manual, 11th Edition.
• Standard 2: Combined Office and R&D Trip Rates. The
same average daily trip rate of 10.96 vehicle trips/1,000 square feet will be assumed for all uses in this
employment category, since the Plan allows for
flexibility in the mix of general office space, research and development space, and life science space, and
because these uses have similar vehicle trip
characteristics.

Proposed Specific Plan Update 8-4.3 Required TDM Elements • 1. Shuttle Program: The TMA shall fund and operate a
shuttle program that connects employees and residents
with nearby commercial, transit, and employment
centers and provides long-haul service to housing and
employment centers in other communities.

Proposed Specific Plan Update Policy
• Policy LU-4.9: All diesel stand by emergency generators shall meet U.S. EPA Tier 4 engine standards. Permanent
stationary emergency generators installed on-site shall have engines that meet or exceed U.S. EPA Tier 4
standards for particulate matter emissions, and shall
obtain appropriate permits to operate from BAAQMD,
as applicable.

Impact AIR-3: Fugitive dust
emissions from future projects’
construction diesel exhaust and
equipment could result in
significant health risk impacts to
nearby sensitive receptors. (Less
than Significant Impact with
Mitigation Incorporated)
MM AIR-3.1: The applicant shall require all construction contractors to implement the best construction measures recommended by BAQMD to reduce fugitive dust emissions.

Emission reduction measures will include, at a minimum, the following measures:
• All exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) shall be watered two times per day.
• All haul trucks transporting soil, sand, or other loose material off-site shall be covered.
• All visible mud or dirt track-out onto adjacent public roads shall be removed using wet power vacuum street
sweepers at least once per day. The use of dry power
sweeping is prohibited.
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy • All vehicle speeds on unpaved roads shall be limited to 15 miles per hour (mph).
• All roadways, driveways, and sidewalks to be paved
shall be completed as soon as possible. Building pads
shall be laid as soon as possible after grading unless
seeding or soil binders are used.
• All construction equipment shall be maintained and
properly tuned in accordance with manufacturer’s
specifications. All equipment shall be checked by a
certified mechanic and determined to be running in
proper condition prior to operation.
• Post a publicly visible sign with the telephone number and person to contact at the Lead Agency regarding
dust complaints. This person shall respond and take
corrective action within 48 hours. The Air District’s
phone number shall also be visible to ensure
compliance with applicable regulations.

MM AIR-3.2: Future projects shall implement the following Enhanced Construction Best Management Practices, which
include but would not be limited to the measures below. Future project applicants shall submit these measures to the City for approval.
• All exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) shall be watered at a frequency adequate to maintain
minimum soil moisture of 12 percent. Moisture content
can be verified by lab samples or moisture probe.
• All haul trucks transporting soil, sand, or other loose material off-site shall be covered.
• All visible mud or dirt track-out onto adjacent public roads shall be removed using wet power vacuum street
sweepers at least once per day. The use of dry power
sweeping is prohibited.
• All vehicle speeds on unpaved roads shall be limited to 15 mph.
• All roadways, driveways, and sidewalks to be paved
shall be completed as soon as possible. Building pads
shall be laid as soon as possible after grading unless
seeding or soil binders are used.
• All construction equipment shall be maintained and
properly tuned in accordance with manufacturer’s
specifications. All equipment shall be checked by a
certified mechanic and determined to be running in
proper condition prior to operation.
• Post a publicly visible sign with the telephone number and person to contact at the Lead Agency regarding
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy dust complaints. This person shall respond and take
corrective action within 48 hours. The Air District’s
phone number shall also be visible to ensure
compliance with applicable regulations.
• All excavation, grading, and/or demolition activities shall be suspended when average wind speeds exceed
20 mph and visible dust extends beyond site
boundaries.
• Wind breaks (e.g., trees, fences) shall be installed on the windward side(s) of actively disturbed areas of
construction adjacent to sensitive receptors. Wind
breaks should have at maximum 50 percent air
porosity.
• Vegetative ground cover (e.g., fast-germinating native grass seed) shall be planted in disturbed areas as soon as possible and watered appropriately until vegetation
is established.
• The simultaneous occurrence of excavation, grading,
and ground-disturbing construction activities on the
same area at any one time shall be limited. Activities
shall be phased to reduce the amount of disturbed
surfaces at any one time.
• Avoid tracking of visible soil material on to public
roadways by employing the following measures if
necessary: (1) Site accesses to a distance of 100 feet
from public paved roads shall be treated with a 6 to 12- inch compacted layer of wood chips, mulch, or gravel
and (2) washing truck tires and construction equipment
of prior to leaving the site.
• Sandbags or other erosion control measures shall be
installed to prevent silt runoff to public roadways from sites with a slope greater than one percent.

Impact AIR-4: The construction
exhaust emissions from future
projects could exceed BAAQMD
thresholds and may result
community health risks for
sensitive receptors such as nearby
residents. (Less than Significant
Impact with Mitigation
Incorporated)
MM AIR-4.1: Applicants proposing development of projects within 1,000 feet of existing sensitive receptors as defined by the BAAQMD (e.g., residential uses, schools) shall prepare a site-specific construction health risk assessment (HRA). If the HRA demonstrates, to the satisfaction of the City, that the health risk exposures for adjacent receptors will be less than BAAQMD project-level thresholds, then additional mitigation would not be required. However, if the HRA demonstrates that health risks would exceed BAAQMD project-level thresholds, additional feasible on- and off-site mitigation shall be identified to further reduce risks to the greatest extent practicable. 198
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy Measures to avoid significant construction health risks impacts that could be included in projects, depending on the results of the project-specific HRAs could include:
• Use Tier 4 engines for all off-road equipment greater than 50 horsepower (hp) and operating for more than
20 total hours over the entire duration of construction activities.
• Use diesel trucks with 2010 or later compliant model
year engines during construction.
• Use renewable diesel during construction.
• Use low-VOC coatings during construction.
• Implement fugitive dust best management practices
and if necessary, enhanced measures recommended by
BAAQMD.
• Use portable electrical equipment where commercially
available and practicable to complete construction.

Construction contractors shall utilize electrical grid
power instead of diesel generators when (1) grid power
is available at the construction site; (2) when
construction of temporary power lines are not
necessary in order to provide power to portions of the
site distant from existing utility lines; (3) when use of portable extension lines is practicable given
construction safety and operational limitations; and (4) when use of electrical grid power does not compromise
construction schedules.
• Phase construction appropriate to lower the intensity of emissions at any one location with sensitive
receptors.
• Provide enhanced air filtration for sensitive receptors adversely affected by project emissions.

Biological Resources
Impact BIO-1: Disturbance or
destruction of individual specialstatus plant species such as the Congdon’s tarplant, alkali milk
vetch, and Point Reyes bird’s beak
could occur during construction
activities associated with future
development projects, resulting in
a significant impact to these
species. (Less than Significant
Impact with Mitigation
Incorporated)
MM BIO-1.1:Pre-Activity Surveys for Special-Status Plants.

Prior to initial ground disturbance for Specific Plan-related projects in salt marsh, tidal slough, and grassland/ruderal habitats as depicted on Figure 3.4-1, a qualified plant ecologist shall conduct an appropriately timed survey for Congdon’s tarplant, Alkali milk vetch, and Point Reyes bird’s beak within the project footprint, and a 50-foot buffer around the project footprint. This buffer may be increased by the qualified plant ecologist depending on site-specific conditions and activities planned in the areas but must be at least 50 feet wide.

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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy volumes of dust, such as grading; potential for project activities to alter hydrology supporting habitat for the species; or proximity to proposed structures that may shade areas farther than 50 feet away.

Surveys should be conducted in a year with near-average or above-average precipitation; surveys conducted in a year of below-average rainfall would be considered valid if examination of reference populations of the target species indicate that the species would be detectable if present. The purpose of the survey shall be to assess the presence or absence of specialstatus plants, including Congdon’s tarplant, alkali milk vetch, and Point Reyes bird’s beak.

If the target species are not found in the impact area or the identified buffer, then no further mitigation shall be warranted.

If the target species, or any other special-status plants are found in the impact area or identified buffers, MM BIO-1.2 and MM BIO-1.3 would be implemented.

MM BIO-1.2: Special-Status Plant Avoidance Buffers. To the extent feasible, and in consultation with a qualified plant ecologist, the project proponent shall submit to the City a design for the proposed project, if feasible, to completely avoid impacts on all populations of special-status plants within the project footprints or within the identified buffers of the impact areas. Avoided special-status plant populations shall be protected by establishing and observing the identified buffer between plant populations and the impact area. All such populations located in the impact area or the identified buffer, and their associated designated avoidance areas, shall be clearly depicted on any construction plans. In addition, prior to initial ground disturbance or vegetation removal, the limits of the identified buffer around special-status plants to be avoided shall be marked in the field (e.g., with flagging, fencing, paint, or other means appropriate for the site in question). This marking shall be maintained intact and in good condition throughout project-related construction activities.

If complete avoidance is not feasible and more than 10 percent of a population (by occupied area or individuals) would be impacted as determined by a qualified plant ecologist, MM BIO1.3 shall be implemented. 200
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy MM BIO-1.3: Preserve and Manage Mitigation Populations of Special-Status Plants. If avoidance of special-status plants is not feasible and more than 10 percent of the population would be impacted, compensatory mitigation shall be provided via the preservation, enhancement, and management of occupied
habitat for the species, or the creation and management of a new population. To compensate for impacts on special-status plants, habitat occupied by the affected species shall be preserved and managed in perpetuity at a minimum 1:1
mitigation ratio (at least one plant preserved for each plant impacted, and at least one occupied acre preserved for each occupied acre affected), for any impact over the 10 percent significance threshold. Alternately, seed from the population to be impacted may be harvested and used either to expand an existing population (by a similar number/occupied area to compensate for impacts to special-status plants beyond the 10 percent significance threshold) or establish an entirely new population in suitable habitat.

Areas proposed to be preserved as compensatory mitigation for impacts to special-status plants must contain verified extant populations of the species, or in the event that enhancement of existing populations or establishment of a new population is selected, the area must contain suitable habitat for the species as identified by a qualified plant ecologist. Mitigation areas shall be managed in perpetuity to encourage persistence and even expansion of this species. Mitigation lands cannot be located on land that is currently held publicly for resource protection unless substantial enhancement of habitat quality will be achieved by the mitigation activities. The mitigation habitat shall be of equal or greater habitat quality compared to the impacted areas, as determined by a qualified plant
ecologist, in terms of soil features, extent of disturbance, vegetation structure, and dominant species composition, and shall contain at least as many individuals of the species as are impacted by project activities. The permanent protection and management of mitigation lands shall be ensured through an appropriate mechanism, such as a conservation easement or fee title purchase.

A habitat mitigation and monitoring plan (HMMP) shall be developed by a qualified biologist or restoration ecologist and implemented for the mitigation lands on a project-by-project basis. Approval of the HMMP by the City shall be required before project impacts occur to the species.
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy The HMMP shall include, at a minimum, the following
information:
• A summary of habitat impacts and the proposed
mitigation;
• A description of the location and boundaries of the
mitigation site and description of existing site
conditions;
• A description of measures to be undertaken to enhance (e.g., through focused management that may include
removal of invasive species in adjacent suitable but
currently unoccupied habitat) the mitigation site for
the species;
• A description of measures to transplant individual
plants or seeds from the impact area to the mitigation
site, if appropriate (which will be determined by a
qualified plant or restoration ecologist);
• Proposed management activities to maintain highquality habitat conditions for the species; • A description of habitat and species monitoring
measures on the mitigation site, including specific,
objective final and performance criteria, monitoring
methods, data analysis, reporting requirements,
monitoring schedule, etc. At a minimum, performance
criteria will include demonstration that any plant
population fluctuations over the monitoring period of a minimum of 5 years for preserved populations and a
minimum of 10 years for enhanced or established
populations do not indicate a downward trajectory in
terms of reduction in numbers and/or occupied area
for the preserved mitigation population that can be
attributed to management (i.e., that are not the result of local weather patterns, as determined by monitoring
of a nearby reference population, or other factors
unrelated to management); and
• Contingency measures for mitigation elements that do
not meet performance criteria.

Impact BIO-2: Future projects’
construction activities could result
in a significant impact to the salt
marsh harvest mouse and salt
marsh wandering shrew
populations and their habitat.

MM BIO-2.1: Salt Marsh Harvest Mouse and Salt Marsh
Wandering Shrew Minimization Measure. Any development
projects, including the loop road or multi-use path, within 100 feet of an area identified as salt marsh, open water, or tidal slough shall be subject to a habitat assessment prepared by a qualified biologist. All habitats identified by the biologist as suitable habitat for the salt marsh harvest mouse or salt marsh wandering shrew shall be avoided for development and
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy preserved in their existing state, to the extent feasible. If avoidance of salt marsh habitats is infeasible, the following measures shall be implemented:
• Before any construction activities begin, a qualified biologist shall conduct a training session for all
construction personnel. At a minimum, the training
shall include descriptions of the salt marsh harvest
mouse and salt marsh wandering shrew, their habitats,
the laws protecting them, the general measures that
are being implemented to conserve the species as they
relate to the project, and the boundaries within which
the project may be accomplished.
• To avoid the loss of individual harvest mice or shrews from any excavation, fill, or construction activities in suitable habitat, vegetation removal will be limited to the minimum amount necessary to permit the activity
to occur. Wherever feasible, sufficient suitable habitat, as determined by a qualified biologist, will remain
adjacent to the activity area to provide refugia for
displaced individuals.
• Within areas where vegetation potentially supporting
salt marsh harvest mice or salt marsh wandering
shrews will be impacted, vegetation and debris that
could provide cover for mice will be removed using only hand tools (which may include motorized equipment
such as line trimmers if the vegetation removed is
inspected by a qualified biologist and does not contain any salt marsh harvest mice or salt marsh wandering
shrews) at least one week prior to the commencement
of construction activities. Vegetation removal will occur under the supervision of a qualified biologist. This
vegetation will be removed on a progressive basis, such that the advancing front of vegetation removal moves
toward vegetation that would not be disturbed. If
necessary, temporary shelter consisting of dead
vegetation may be positioned to provide escape routes
to suitable habitat. A qualified biologist will monitor the vegetation removal and make specific
recommendations with respect to the rate of
vegetation removal (to ensure that any harvest mice or
shrews present are able to escape to cover that will not be impacted), and whether vegetation needs to remain
in a certain area temporarily to facilitate dispersal of mice into habitat outside the impact area.
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy • All cut vegetation, except cut vegetation left in place as escape cover, will be removed daily from vegetation
removal areas to prevent it from being used as refugia
by salt marsh harvest mice.
• If a salt marsh harvest mouse or salt marsh wandering shrew, or an animal that may be a salt marsh harvest
mouse or salt marsh wandering shrew, is detected
during vegetation removal or other project activities, all work that could impact the individual will cease until
the animal has moved out of the impact area on its
own. A qualified biologist will monitor the animal to
ensure that it disperses out of the impact area. If the animal will not move on its own, the biologist will
confer with the US Fish and Wildlife Service (USFWS)
and California Department of Fish and Wildlife (CDFW)
to identify appropriate measures to avoid impacts to
the animal. No salt marsh harvest mice or salt marsh
wandering shrews will be handled (even for relocation)
without prior approval from the USFWS and CDFW.
• Following the hand-removal of vegetation, exclusion
fencing will be erected as needed between
construction areas and harvest mouse/shrew habitat
that is to remain unimpacted to define and isolate
protected harvest mouse/shrew habitat. This fencing
will consist of material that cannot be climbed by
harvest mice, buried at least 4 inches below the
ground’s surface, and with at least 1 ft (but no more
than 4 ft) above the ground. All supports for the
fencing will be placed on the inside of the work area. A minimum 2-ft buffer will be maintained free of
vegetation around the outside of the exclusion fencing.

The fencing will be inspected daily during construction, and any necessary repairs will be made within 24 hours
of when they are found. If any breaks in the fencing are found, the qualified biologist will inspect the work area for salt marsh harvest mice and salt marsh wandering
shrews.
• During construction, a qualified biologist will check underneath vehicles and equipment for salt marsh
harvest mice and salt marsh wandering shrews before
such equipment is moved, unless the equipment is
surrounded by harvest mouse exclusion fencing.
• No animals (e.g., dogs or cats) will be brought to the project site by project personnel to avoid harassment,
killing, or injuring of wildlife.
• The project site will be maintained trash-free, and food refuse will be contained in secure bins and removed
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy daily during construction, to avoid attracting nuisance animals that may then prey on salt marsh harvest mice.
• Nighttime work will be avoided if feasible. If avoidance of night work is infeasible, all project lighting will be shielded and directed away from tidal marshes.
• Construction activities within 10 feet of the high tide line shall not occur within two hours before or after
extreme high tides (6.5 feet or above, as measured at
the Golden Gate Bridge and adjusted to the timing of
local high tides), when the marsh plan is inundated,
because protective cover for these species is limited
and activities could prevent them from reaching
available cover.
• In either configuration, with or without the loop road, salt marsh and upland grassland habitats, which may be
used for foraging and high-tide refugia by both species, would be located immediately adjacent to the new
road and pathways. Therefore, dense upland
ecotone/transitional salt marsh vegetation shall be
planted along the immediate edge of the shoulder of
the loop road or multi-use path adjacent to salt marsh
and upland grassland habitats to provide high-tide
refugia for both species.
• In order to provide a barrier between transitional salt marsh and upland grassland habitats and the newly
constructed loop road or multi-use path, and to
discourage loop road/multi-use path users from
entering potential habitats used by salt marsh harvest
mice and salt marsh wandering shrews, a low (less than
three feet tall) symbolic fence or wall with educational signs prohibiting entry shall be placed along the edge of the developed area, between the developed area and
the upland ecotone to be added as described above.

MM BIO-2.2: Salt Marsh Harvest Mouse and Salt Marsh
Wandering Shrew Compensatory Mitigation. Compensatory
mitigation for individual project impacts, including the loop road or multi-use path, on the salt marsh harvest mouse and salt marsh wandering shrew habitat will be provided via the purchase of credits from a conservation bank or mitigation bank that has restored suitable salt marsh habitat for these species; project-specific mitigation via the preservation and management of suitable habitat for this species; or some combination of the two approaches. If no USFWS/CDFWapproved conservation banks specifically for these mammals are available, credits in a tidal wetland mitigation bank that 205
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy provides suitable habitat for, and is expected to be occupied by, these species would be adequate. Compensatory mitigation shall be provided at a minimum ratio of 2:1 (mitigation to impact) on an acreage basis if project-specific mitigation is performed or 1:1 if credits are purchased from a mitigation or conservation bank. Compensatory mitigation shall be provided for any potentially suitable habitat for these species that is permanently lost to development or that is present within 50 feet of any new or higher-intensity lighting installed by Specific Plan activities.

If project-specific mitigation is provided as compensatory mitigation, the applicant will engage a qualified plant or restoration ecologist to prepare an HMMP describing the measures that will be taken to create, restore, or enhance habitat for the salt marsh harvest mouse and salt marsh wandering shrew and monitor the effects of the mitigation on these species. The HMMP will include, at a minimum, the following:
• A summary of project impacts on the species and the
proposed mitigation of these impacts;
• A description of the location and boundaries of the
mitigation site and description of existing site
conditions;
• A description of measures to be undertaken to enhance (e.g., through focused management) the mitigation site
for the species;
• Proposed management activities (e.g., management of
invasive plants) to maintain high-quality habitat
conditions for the species;
• A description of community and species monitoring
measures on the mitigation site, including specific,
objective goals and objectives, performance indicators, success criteria, monitoring methods, data analysis,
reporting requirements, and monitoring schedule. At a
minimum, success criteria shall include demonstration
that habitat conditions are suitable for occupancy by
the salt marsh harvest mouse and salt marsh
wandering shrew, and that either a) at least one of
these species is present, or b) the site is connected to pre-existing, suitable, and presumably occupied habitat so that colonization of the mitigation site is determined to be likely by a qualified biologist. Monitoring will
occur until these criteria are achieve but for no less
than five years.
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy • A description of the HMMP’s adaptive component,
including potential contingency measures for mitigation elements that do not meet performance criteria; and
• A description of the funding mechanism to ensure the
long-term maintenance and monitoring of the
mitigation lands.

The HMMP shall be prepared by a qualified plant or
restoration ecologist. Approval of the HMMP by the City shall be required before project impacts occur to the
species.

MM BIO-2.3: Prohibit Rodenticides. The use of rodenticides shall not be allowed within 100 feet of any salt marsh habitat.

MM BIO-2.4: Restrict Pesticide Use in and near Salt Marsh Habitats. All pesticides used within 100 feet of salt marsh habitats must be utilized in accordance with the manufacturer’s directions. No pesticides shall be applied within tidal marsh habitats as part of Specific Plan Update activities. Any pesticides used in areas where they could be washed, or could drift via wind, into tidal marsh habitat must be approved by the City of East Palo Alto for use in aquatic habitats.

MM BIO-2.5: Raptor Perch Deterrents. Within 300 feet of any salt marsh habitats within or adjacent to the Specific Plan area, raptor perch deterrents will be placed on any edges of building roofs, terraces, or other structures (e.g., light poles or electrical towers) that are high enough to overlook the marsh and that have an unobstructed view to the marsh. The specific type of perch deterrent(s) used shall be approved by a qualified biologist and the City.

MM BIO-2.6: Landscape Design. To avoid perches for avian predators and dense woody vegetation that could hide
mammalian predators of salt marsh harvest mouse and salt marsh wandering shrew, new landscaping, as well as the size, location and species of any new or replacement public street trees, within 300 feet of salt marsh habitats shall be reviewed by a qualified biologist familiar with these species’ ecology prior to City approval to ensure that no new landscaping poses a threat to these two mammals. Intervening structures,
topography, and other features that may block the view of the 207
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy tidal marsh from avian predators using proposed trees shall be considered by the biologist.

MM BIO-2.7: Restrictions on Outdoor Cat Feeding Stations and Off-Leash Dogs. Future developments shall prohibit
outdoor cat feeding stations within 300 feet of salt marsh habitats. Future developments shall also prohibit off-leash dogs within 100 feet of salt marsh habitats unless within fenced areas.

MM BIO-2.8: Food Waste Management. The following
measures shall be implemented by future developments within 100 feet of salt marsh habitats to reduce impacts on salt marsh harvest mice and salt marsh wandering shrews due to the attraction of nuisance predators:
• Any bins used for food waste shall include lids that seal tightly to prevent access by animals and incorporate a
mechanism to prevent them from being inadvertently
left open when not in active use.
• Outdoor trash and recycling receptacles shall be
emptied frequently enough that cans do not fill up and
allow food waste to spill out.
• Litter on the site shall be picked up daily, and no food trash is left on-site overnight.
• Signs shall be placed on trash and recycling receptacles reminding users to close the lids so that they will not be inadvertently left open.
• Residents and visitors shall be prohibited from feeding feral or wild mammals.
• Educational signs shall be posted explaining the
importance and sensitivity of nearby marsh habitats,
prohibiting feeding wildlife and feral animals on the
property, prohibiting off-leash dogs, and advising
residents and visitors to dispose of food waste in
outdoor areas appropriately to avoid attracting and
subsidizing nuisance species.

Impact BIO-3: Future project
construction could result in the loss
of California black rail and/or
California Ridgway’s rail
populations and their habitats,
which would constitute a
significant impact. (Less than
MM BIO-3.1: Seasonal Avoidance or Protocol-level Surveys and Buffers around Calling Centers. To avoid causing the abandonment of an active California Ridgway’s rail or California black rail nest, independent project activities within 700 feet of salt marsh habitats within or adjacent to the Specific Plan area will be avoided during the rail breeding season (from February 1 through August 31) unless 1) a qualified biologist determines 208
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy Significant Impact with Mitigation
Incorporated)
that a reduced buffer (but no less than 200 feet) is appropriate due to intervening development or obstructions, the level of disturbance by the activity (in terms of noise and equipment), or other factors that would reduce the potential for the activity to disturb nesting rails, or 2) protocol-level surveys are conducted by a qualified biologist to determine rail locations and territories during the year in which construction is initiated.

Protocol-level surveys are typically initiated in late January, so proactive planning is necessary to ensure that such surveys are conducted according to the protocol during the year in which construction occurs.

If breeding rails are determined to be present, construction activities shall not occur within 700 feet of an identified California Ridgway’s rail calling center or within 300 feet of a California black rail calling center during the breeding season.

Impact BIO-4: Future projects’
construction activities that occur in
or near the tidal salt marsh, open
water, or tidal slough habitats,
could result in significant impacts
to special-status species fish. (Less
than Significant Impact with
Mitigation Incorporated)
MM BIO-4.1: Worker Environmental Awareness Training.

Personnel working on projects within or adjacent to salt marsh, open water, or tidal slough habitats shall be trained by a qualified biologist in the importance of the marine environment to special-status fish and other aquatic animals and plants, and the environmental protection measures put in place to prevent impacts to these species, their habitats, and essential fish habitat (EFH). The training session shall include the information described in MM BIO-1.4, as well as the following:
• A review of the special-status fish, other aquatic
animals and plants, and sensitive habitats that could be found in or near the work areas;
• Measures to avoid and minimize adverse effects to
special-status fish, other aquatic animals and plants,
their habitats, and EFH; and
• A review of all conditions and requirements of
environmental permits, reports, and plans (e.g., USACE
permits).

MM BIO-4.2: Water Quality Protection. During construction, the project applicant shall employ standard construction best management practices (BMPs) to protect water quality. These BMPs may include but are not limited to the following:
• Sediment mitigation measures shall be in place prior to the onset of project construction and shall be
monitored and maintained until construction activities
have been completed. Temporary stockpiling of
excavated or imported material shall occur only in
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy approved construction staging areas. Stockpiles that
are to remain on the site throughout the wet season
shall be protected to prevent erosion.
• No litter, debris, or sediment shall be dumped into
storm drains. Daily trash and debris removal shall occur at the site.
• All litter and construction debris shall be disposed of off-site in accordance with state and local regulations.

All trash and debris within the work area shall be
placed in containers with secure lids before the end of work each day in order to reduce the likelihood of
predators being attracted to the site by discarded food wrappers and other rubbish that may be left on-site. If containers meeting these criteria are not available, all rubbish shall be removed from the project site at the
end of each work day.
• Equipment staging and parking of vehicles shall occur on established access roads and flat surfaces.
• The integrity and effectiveness of construction fencing and erosion control measures shall be inspected on a
daily basis. Corrective actions and repairs shall be
carried out immediately for fence breaches and
ineffective BMPs.
• Fueling, washing, and maintenance of vehicles shall
occur in developed habitat, away from all tidal salt
marsh, open water, and tidal slough habitats.

Equipment shall be regularly maintained to avoid fuel
leaks. Any leaks shall be captured in containers until
equipment is moved to a repair location. Hazardous
materials shall be stored only within the developed
habitat. Containment and cleanup plans shall be
prepared and put in place for immediate cleanup of
fluid or hazardous materials spills.
• Absorbent materials designated for spill containment
and clean-up activities shall be available on project
sites for use in an accidental spill.
• At no time shall sediment-laden water be allowed to
enter the salt marsh, open water, or tidal slough
habitats.

Impact BIO-5: Future projects’
construction activities that occur in
proximity to active burrows could
result in the injury or loss of
burrowing owls, resulting in a
significant impact to these species.

MM BIO-5.1: Burrowing Owl Minimization Measures. To
reduce impacts on burrowing owls, the following shall be implemented:
• Preconstruction Surveys. Preconstruction surveys for
burrowing owls shall be conducted prior to the
initiation of construction activities within suitable
burrowing owl roosting or nesting habitat (i.e.,
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Mitigation Incorporated)
grassland or ruderal habitats), or within 250 feet of this habitat. During the initial site visit, a qualified biologist shall survey the entire project site and (to the extent that access allows) areas within 250 feet by walking
transects with centerlines no more than 50 feet apart
and ensure complete visual coverage and looking for
suitable burrows that could be used by burrowing owls.

If no suitable burrows are present, no additional
surveys are required.

If suitable burrows are determined to be present within 250 feet of project impact areas, a qualified biologist shall conduct a second survey to determine whether
owls are present in areas where they could be affected
by proposed activities. The survey shall last a minimum of three hours, beginning one hour before sunrise and
continuing until two hours after sunrise, or beginning
two hours before sunset and continuing until one hour
after sunset. The first survey may occur up to 14 days
prior to the start of construction activities in any given area, and the second survey shall be conducted within
two days prior to the start of construction activities. • Implement Buffer Zones for Burrowing Owls. If
burrowing owls are detected during the pre-activity
survey, a 165-foot buffer, within which no newly
initiated construction-related activities should occur, will be maintained between construction activities and
occupied burrows to the extent feasible during the
nonbreeding season (September 1 through January 31).

This buffer may be reduced if a qualified biologist
determines that work will not result in damage to the
burrow(s) being used by the owls. Though the species is highly unlikely to breed in the Specific Plan area, owls present between February 1 and August 31 will be
assumed to be nesting, and a 250-foot protected area
will remain in effect until August 31, or until the burrow is no longer occupied, whichever occurs first.
• Passive Relocation. No burrowing owls shall be
relocated from burrows during the breeding season
(February 1 through August 31). If, during the
nonbreeding season (September 1 through January 31),
it is infeasible to maintain a buffer around occupied
burrow(s) large enough to ensure that the burrow(s)
will not be physically disturbed (thus risking injury or 211
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy mortality of the owl), the owl may be passively
relocated from the occupied burrow(s) using one-way
doors. Passive relocation shall be performed only by a
qualified biologist. One-way doors must be in place for a minimum of 48 hours, during dry conditions, to
ensure that owls have left the burrow before the
burrow is impacted.

Impact BIO-6: Future project
activities in the northwest corner of
the Specific Plan area occur within
600 feet of active nests,
construction activities could result
in the abandonment of nests, and
possibly the loss of eggs or young
western snowy plover, resulting in
a significant impact to these
species. (Less than Significant
Impact with Mitigation
Incorporated)
MM BIO-6.1: Seasonal Avoidance and Buffers. No Specific Plan Update construction activities shall be performed within 600 feet of an active snowy plover nest during the snowy plover breeding season, March 1 through September 14. Prior to the initiation of any activities within 300 feet of the southwest corner of Pond SF 2, north of the Specific Plan area during the period March 1 through September 14, a qualified biologist shall conduct a survey for suitable habitat for nesting snowy plovers, and for active nests. If no suitable nesting habitat or active nests are present within 600 feet of the proposed activity, construction may proceed. If an active nest is present, no construction activities shall commence within 600 feet of the nest until the nest is no longer active.

Impact BIO-7: Construction
disturbance during the bird nesting
season (typically February 1
through August 31) could result in
the incidental loss of eggs or
nestlings of native birds, either
directly through the destruction or
disturbance of active nests or
indirectly by causing enough
disturbance to result adult birds
abandoning their nests. (Less than
Significant Impact with Mitigation
Incorporated)
MM BIO-7.1: To minimize impacts on nesting birds, the
following shall be implemented:
• Seasonal Avoidance and Buffers. To the extent
feasible, vegetation removal, demolition, and initiation of grading and other construction activities should be
scheduled to avoid the nesting season. If such activities take place outside the nesting season, all impacts on
nesting birds protected under the MBTA and California
Fish and Game code will be avoided. The nesting
season for most birds in San Mateo County extends
from February 1 through August 31.
• Preconstruction/Pre-disturbance Surveys. If it is not possible to schedule vegetation removal, demolition,
and construction activities between September 1 and
January 31, then preconstruction surveys for nesting
birds shall be conducted by a qualified biologist to
ensure that no nests of migratory birds will be
disturbed during project implementation. These
surveys shall be conducted no more than seven days
prior to the initiation of tree removal, demolition,
ground disturbance, or construction activities for each construction phase. During this survey, the biologist
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy shall inspect all potential nesting habitats (e.g., trees, shrubs, buildings, electrical towers, and the ground) in and immediately adjacent to the impact areas for
migratory bird nests.
• Buffers. If an active nest is found within areas that would be disturbed by project activities, the qualified biologist shall determine the extent of a constructionfree buffer zone to be established around the nest (typically 300 feet for raptors and 100 feet for other
species, though buffers may be reduced by the
biologist based on intervening structures or vegetation, the magnitude of disturbance produced by the activity,
and the level of human activity to which the birds are
already habituated), to ensure that no active nests of
species protected by the MBTA and California Fish and
Game Code will be disturbed during project
implementation.
• Inhibition of Nesting. If construction activities will not be initiated until after the start of the nesting season, all potential nesting substrates (e.g., bushes, trees,
grasses, and other vegetation) that are scheduled to be removed by the project may be removed prior to the
start of the nesting season (e.g., prior to February 1) to reduce the potential for establishment of nests in areas to be disturbed.

Impact BIO-8: Increased lighting
from future development adjacent
to sensitive habitats could result in
a significant impact on wildlife such
as indirectly increasing predation
and bird collisions. (Less than
Significant Impact with Mitigation
Incorporated)
MM BIO-8.1: Exterior lighting shall be minimized (e.g., by turning lights off) in accordance with recommendations from the International Dark-Sky Association from midnight until dawn, at a minimum, except as needed for safety and City code compliance. Exterior lighting within the Specific Plan area shall be shielded to block illumination from shining upward or outward into the sensitive habitats (i.e., salt marshes) within and adjacent to the Specific Plan area. Uplighting shall be avoided.

MM BIO-8.2: Spillage of lighting from building interiors shall be minimized using occupancy sensors, dimmers, blinds, or other mechanisms from midnight until dawn, at a minimum, during migration seasons (February through May and August through November).
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy Impact BIO-9: Construction and
operation of future development
would result in soil disturbance
adjacent to sensitive salt marsh and
tidal slough habitats which could
result in the spread of non-native
plant species in wetland areas in
and adjacent to the Specific Plan
area.

MM BIO-9.1: Implement Invasive Weed Best Management
Practices (BMPs). The invasion and/or spread of noxious weeds will be avoided by the use of the following invasive weed BMPs:
• Prohibit the use of moderate or highly invasive and/or noxious weed (as defined by California Department of
Food and Agriculture) for landscaping.
• During project construction, all seeds and straw
materials used in the Specific Plan area shall be weedfree rice (or similar material acceptable to the City) straw, and all gravel and fill material will be certified weed-free to the satisfaction of the City. Any deviation from this will be approved by the City.
• During project construction within, or within 100 feet of, tidal salt marsh, open water, or tidal slough
habitats, vehicles and all equipment shall be washed
(including wheels, undercarriages, and bumpers) before
and after entering the proposed project footprint.

Vehicles will be cleaned at existing construction yards or car washes.
• Following construction of project, a standard erosion control seed mix (acceptable to the City) from a local
source, and free of invasive species, will be planted
within the temporary impact zones on any disturbed
ground that will not be under hardscape, landscaped,
or maintained. This will minimize the potential for the germination of the majority of seeds from nonnative,
invasive plant species.

Impact BIO-10: Future projects
adjacent to the salt marsh habitat
could result in a significant impact
to jurisdictional waters of the state
or U.S. habitat. (Less than
Significant Impact with Mitigation
Incorporated)
MM BIO-10.1: Jurisdictional Waters Avoidance and
Minimization Measures. The following measures will be
implemented to avoid and minimize impacts to jurisdictional waters to less than significant levels.
• During or prior to project design, a wetland delineation of the project area shall be conducted to determine
precise boundaries of jurisdictional wetlands and other waters. Impacts to any jurisdictional habitats shall be avoided to the extent practicable. If wetlands or other waters under state or federal jurisdiction occur in the construction areas and involve the placement of fill or dredged materials or other alteration, the necessary
and appropriate permits and approvals from
responsible resource agencies shall be secured. As
appropriate for the type of permit to be considered,
options that avoid, minimize, or mitigate potential
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy impacts on jurisdictional wetlands shall be evaluated.

Conditions of approval attached to the permits shall be followed.
• Sensitive habitat areas including wetlands adjacent to, but outside of, the construction area shall be
demarcated with orange construction fencing to
exclude workers, vehicles, and equipment.
• The locations of habitats to be avoided shall be
identified in the contract documents (plans and
specifications) as “Sensitive Biological Resources – Do Not Disturb.”
• Jack-and-bore or other trenchless methods shall be
used as feasible to reduce the need for surface
construction within identified sensitive habitats and
exclusion zones, and construction activities and
vehicles shall be restricted to a specified right-of-way. • Temporarily impacted wetlands and other waters shall
be restored in place based on a restoration plan
prepared by a qualified biologist and approved by the
City.
• Where possible, trenches shall be worked from only
one side to minimize impacts on adjacent habitat.
• Watering of exposed earth shall be conducted
consistent with construction BMPs to minimize dust
production.
• Trench lines shall be reseeded with native vegetation appropriate for the affected habitat type, and/or a
double-trenching technique shall be used through
sensitive habitats to help preserve the existing
seedbank.

MM BIO-10.2: Jurisdictional Waters Compensatory Mitigation.

If impacts to jurisdictional wetlands or other waters cannot be avoided, compensatory mitigation shall be provided as follows (or as otherwise required by conditions of applicable resource agency permits) to reduce impacts to less than significant impacts.
• Compensatory mitigation shall be provided via the
purchase of credits from a wetland mitigation bank;
project-specific mitigation via the creation or
restoration of the same general type of
wetlands/waters impacted; or some combination of the
two approaches. Compensatory mitigation shall be
provided at a minimum ratio of 2:1 (mitigation: impact) on an acreage basis if project-specific mitigation is
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy performed or 1:1 if credits are purchased from a
mitigation bank. Mitigation performed for loss of salt
marsh harvest mouse and salt marsh wandering shrew
habitat, as described in MM BIO-5, may be adequate
compensation for impacts to jurisdictional waters if
performed via purchase of credits in a wetland
mitigation bank and/or creation of suitable wetlands as described in the following bullet point.
• If project-specific mitigation is provided as
compensatory mitigation, a qualified biologist will
prepare an HMMP describing the measures that will be
taken to create, restore, or enhance appropriate
habitats and to monitor mitigation success. The HMMP
will include, at a minimum, the following:
• A summary of project impacts on jurisdictional
habitats and the proposed mitigation of these
impacts;
• A description of the location and boundaries of the
mitigation site and a description of existing
mitigation site conditions;
• A description of measures to be undertaken, if
necessary, to create, restore, or enhance
appropriate habitats;
• Proposed management activities, such as
management of invasive plants, to maintain highquality habitat conditions; • A description of community monitoring measures
on the mitigation site, including specific, objective
goals and objectives, performance indicators,
success criteria, monitoring methods, data
analysis, reporting requirements, and monitoring
schedule. At a minimum, success criteria will
include demonstration of at least 75 percent cover
by native wetland plants within the mitigation
area. Monitoring shall occur until these criteria are
achieved but for no less than five years;
• A description of the HMMP’s adaptive component,
including potential contingency measures for
mitigation elements that do not meet
performance criteria; and
• A description of the funding mechanism to ensure
the long-term maintenance and monitoring of the
mitigation lands.

The HMMP will be approved by the City and any agencies
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy (e.g., USACE and RWQCB) prior to the initiation of impacts to jurisdictional wetlands or other waters.

Cultural Resources
Impact CUL-1: Future projects
could indirectly or directly impact
known and unknown historic
buildings and structures by
removing historic buildings and
structures, or altering the setting
for historic properties.

Policy LU-7.1: Ensure that City, State, and Federal historic preservation laws, regulations, and codes are implemented, including State laws related to archaeological resources, to ensure the adequate protection of historic and prehistoric resources.

Policy LU-7.2: Require preparation of a project-specific Historic Architectural Resources Assessment (HARA) by a professional Architectural Historian for any buildings or structures that are over 45 years in age that could be affected by a project. The HARA will provide background context, identify any
architectural resources including standing buildings and structures, and provide an evaluation using the criteria of the California Register of Historic Resources. Follow the HARA recommendations to avoid and minimize damage to these
resources. These may include additional research, measured drawings and photographic recordation with deposition of any research materials with a historical society or repository.

Impact CUL-2: Future projects
could discover unknown
archaeological resources during
construction. If Specific Plan
Update Policies to protect these
resources during construction are
not implemented, future projects
would have a significant impact on
these resources.

Proposed Specific Plan Update Cultural Resources Policies Policy LU-7.3: Future project applicants shall engage a qualified archaeologist to complete a site-specific review and evaluation of a development site within the Specific Plan area as part of the discretionary permitting process in regard to archaeological resources. The identification, review, and evaluation shall be completed by qualified professional archaeologists. The results shall be presented in a Cultural Resources Assessment Report (CRAR) or similar document format that provides the results of the identification and evaluation effort with site specific mitigation recommendations. The CRAR shall be reviewed and approved by the City as part of the discretionary permitting process.

Policy LU-7.4: Future project applicants shall implement sitespecific mitigation measures or recommendations presented in the CRAR as determined necessary by the City. Mitigation or recommendations could include:
• Completion of an archaeological testing program to
determine the potential for the presence/absence of
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy subsurface cultural deposits and develop further
recommendations for cultural resource
avoidance/preservation;
• Implementation of cultural resources monitoring during subsurface construction for project sites within or
adjacent to a recorded cultural resource; and
• Recordation of any significant built environment
resources including but not limited to systematic
photographic recordation and architectural measured
drawings as well as additional detailed archival
research.

Policy LU-7.5: Future project applicants, in consultation with the City, shall contact the Native American Heritage
Commission (NAHC) for environmental reviews during the
development permitting process to determine if resources listed on the Sacred Lands File are within or adjacent to a project specific site. Outreach to members of the Native American community identified by the NAHC shall be
undertaken to determine if they can provide information on tribal cultural resources within or adjacent to the project site.

Policy LU-7.6: Future project applicants shall note on any plans that require ground disturbing excavation that there is a potential for exposing buried cultural resources and tribal cultural resources including prehistoric Native American burials.

Policy LU-7.7: Future project applicants shall retain a Professional Archaeologist (PA) on an “on-call” basis during ground disturbing construction to review, identify, and evaluate cultural resources that may be inadvertently exposed during construction. The archaeologist shall review and evaluate any discoveries to determine if they are historical resource(s) and/or unique archaeological resources or tribal cultural resources under CEQA.

Policy LU-7.8: Prior to ground disturbing activities, a PA shall complete in-person Worker Awareness Training (WAT) for
cultural resources. Training shall be required for all
construction personnel participating in ground disturbing construction to alert them to the cultural sensitivity of the project site and provide protocols to follow in the event of a discovery of archaeological materials. The Principal
Archaeologist or Project Archaeologist shall develop and distribute an “ALERT SHEET” summarizing potential finds that 218
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy could be exposed and the protocols to be followed as well as points of contact to alert in the event of a discovery.

Policy LU-7.9: If the PA determines that any cultural resources exposed during construction constitute a historical resource and/or unique archaeological resource or tribal cultural resource under CEQA, the PA shall notify the project proponent and Community Development Director, or their designee, of the evaluation. The PA shall recommend mitigation measures to mitigate to a less than significant impact in accordance with California Public Resources Code Section 15064.5. Tribal cultural resources shall be evaluated with the assistance of Native American tribes and/or individual tribal members who have previously been contacted and responded to outreach efforts made by the project proponent. Mitigation measures may include, but would not be limited to, avoidance,
preservation in-place, recordation, additional archaeological testing, and data recovery. The completion of a formal
Archaeological Monitoring Plan (AMP) and/or Archaeological Treatment Plan (ATP) that may include data recovery may be recommended by the PA if significant archaeological deposits are exposed during ground disturbing construction.

Development and implementation of the AMP and ATP and
treatment of significant cultural resources and/or tribal cultural resources shall be completed by the project applicant in consultation with any regulatory agencies and Native American tribes and tribal individuals.

Policy LU-7.10: The project applicant shall submit a Monitoring Closure Report to the City at the conclusion of ground
disturbing construction if archaeological and Native American monitoring was undertaken.

Impact CUL-3: Future projects
could discover unknown human
remains during construction. If
Specific Plan Update Policies to
protect these resources during
construction are not implemented,
future projects would have a
significant impact on these
resources. (Less than Significant
Impact with Mitigation
Incorporated)
Proposed Cultural Resources Specific Plan Update Policy:

Policy LU-7.11: In the event that human remains are
discovered during excavation and/or grading of the site, all activity within a 50-foot radius of the find will be stopped. The San Mateo County Coroner will be notified and shall make a determination as to whether the remains are of Native
American origin or whether an investigation into the cause of death is required. If the remains are determined to be Native American, the Coroner will notify the Native American Heritage Commission (NAHC) immediately. Once the NAHC identifies the most likely descendants, the descendants will make
recommendations regarding proper burial, which will be
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy implemented in accordance with Section 15064.5(e) of the CEQA Guidelines.

Geology and Soils
Impact GEO-1: Future projects
under the Specific Plan Update
could directly or indirectly cause
substantial adverse effects related
to strong seismic ground shaking
and seismic-related ground failure.
(Less than Significant Impact with
Mitigation Incorporated)
MM GEO-1: All structures shall be designed using sound
engineering judgment and the latest California Building Code (CBC) requirements as a minimum. Seismic design provisions of current building codes generally prescribe minimum lateral forces, applied statically to the structure, combined with the gravity forces of dead and live loads. The code-prescribed lateral forces are generally substantially smaller than the expected peak forces that would be associated with a major earthquake. Therefore, structures shall be able to do all of the following:
• Resist minor earthquakes without damage.
• Resist moderate earthquakes without structural
damage but with some nonstructural damage.
• Resist major earthquakes without collapse but with
some structural as well as nonstructural damage.

Impact GEO-2: Future projects
under the Specific Plan Update
could directly or indirectly cause
substantial adverse effects related
to liquefaction. (Less than
Significant Impact with Mitigation
Incorporated)
MM GEO-2: Foundations shall be designed to compensate for effects of liquefaction, differential settlement, and lateral spreading due to earthquakes. Foundations shall be designed by a qualified structural engineer using soil design parameters developed by qualified geotechnical consultants and verified by the City’s Building Services Division.

Specific Plan Update Shoreline-Adjacent Development
Requirements
• Standard 9.7.6: Shallow Groundwater Vulnerability
Assessment and Mitigation. Shoreline-adjacent
development projects shall perform a geotechnical
assessment of the project’s vulnerability to shallow
groundwater rise and submit a list of project measures
that will monitor and mitigate seasonal and permanent
emergent groundwater impacts, including: buoyancy,
seepage, infiltration, liquefaction, corrosion, and
contaminant mobilization hazards.

Impact GEO-3: Future
development adjacent to the San
Francisco Bay could result in a
significant impact related to lateral
spreading. (Less than Significant
MM GEO-3: Implement Mitigation Measure GEO-1 above. In
addition, site development plans and foundations shall be designed to compensate for effects of lateral spreading due to earthquakes. Earthwork activities, including remedial grading, shall be performed using the recommendations provided by qualified geotechnical consultants, and foundations shall be 220
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Incorporated)
designed by a qualified structural engineers using soil design parameters developed by qualified geotechnical consultants and verified by the City’s Building Services Division.

Impact GEO-4: Future
development on existing Bay Mud
deposits and fills could result in
significant vertical movement and
differential settlement. (Less than
Significant Impact with Mitigation
Incorporated)
MM GEO-4: Improvements on areas of soft Bay Mud and
artificial fill must be designed under the guidance of suitably qualified geotechnical consultants to ensure that the
underlying substrate is capable of withstanding the load.

Existing fills may need to be removed and replaced with engineered fills.

Impact GEO-5: Future
development on the existing
expansive soils could result in
resulting in heaving and cracking of
building foundations. (Less than
Significant Impact with Mitigation
Incorporated)
MM GEO-5: Earthwork and foundations shall be designed to compensate for effects of expansive soils. Fill placement and foundation design criteria shall be developed by qualified geotechnical consultants and verified by the City’s Building Services Division.

Impact GEO-6: Future projects
could encounter paleontological
resources during construction,
resulting in the destruction of these
resources. (Less than Significant
Impact with Mitigation
Incorporated)
MM GEO-6: If paleontological resources are encountered
during grading or excavation, all construction activities within 50 feet shall stop and the City shall be notified. A qualified paleontologist shall inspect the findings within 24 hours of discovery. If it is determined that the proposed development could damage unique paleontological resources, mitigation shall be implemented in accordance with Public Resources Code Section 21083.2 and Section 15126.4 of the CEQA
Guidelines. Possible mitigation under Public Resources Code Section 21083.2 requires that reasonable efforts be made for resources to be preserved in place or left undisturbed. If preservation in place is not feasible, project applicants shall pay in-lieu fees to mitigate significant effects. Excavation as mitigation shall be limited to those parts of resources that would be damaged or destroyed by a project. Possible
mitigation under CEQA emphasizes preservation-in-place
measures, including planning construction avoid
paleontological sites, incorporating sites into parks and other open spaces, covering sites with stable soil, and deeding the site into a permanent conservation easement. Under CEQA Guidelines, when preservation in place is not feasible, data recovery through excavation shall be conducted with a data recovery plan in place. Therefore, when considering these possible mitigations, the City shall have a preference for preservation in place.
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy Greenhouse Gas Emissions
Impact GHG-1: The greenhouse gas
emissions from future
development under the Specific
Plan Update are predicted to
annually add up to 63,690 MT CO2e
for Scenario #1 and 72,693 MT
CO2e for Scenario #2 through the
addition of new residences, office,
industrial/R&D, civic/community,
and retail land uses. There is no
current pathway for the Specific
Plan Update, based on the
mechanisms currently available to
the City, to achieve carbon
neutrality by 2045. (Significant and
Unavoidable Impact)
Future projects would implement Specific Plan Update 8-4.1 TDM standards to reduce vehicle emissions (listed under Impact AIR-1).

Hazards and Hazardous Materials
Impact HAZ-1: Future
developments projects could
create a significant hazard to the
public or the environment through
reasonably foreseeable upset and
accident conditions involving the
release of hazardous materials into
the environment. (Less than
Significant Impact with Mitigation
Incorporated)
Proposed Specific Plan Update Policies
• LU-5.1: Prior to the development or redevelopment of
site parcels, a property-specific Phase I ESA shall be
completed in accordance with ASTM Standard
Designation E 1527-21 (or most recent version) to
identify Recognized Environmental Conditions, evaluate
the property history, and establish if the property is
likely to have been impacted by chemical releases. Soil, soil vapor and/or groundwater quality studies shall
subsequently be conducted, if warranted based on the
findings of the property-specific Phase I ESAs, to
evaluate if remedial measures are needed to protect
the health and safety of site occupants and
construction workers.
• LU-5.2: Prior to the start of earthwork activities (e.g., excavation, trenching, grading, etc.) on properties with known contaminants of concern (COC) exceeding the
lower of the current California Department of Toxic
Substances Control (DTSC), San Francisco Bay Regional
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy Water Quality Control Board (RWQCB) or U.S.

Environmental Protection Agency (U.S. EPA) residential
screening levels, an appropriate corrective action/risk management plan [e.g., RAP, removal action workplan
(RAW )or Site Management Plan (SMP)] shall be
prepared that reflects the results of the on-site
investigations. The corrective action/risk management
plan shall describe measures necessary to protect the
health and safety of future site occupants, and
establish appropriate management practices for
handling and monitoring of impacted soil, soil vapor
and groundwater that potentially may be encountered
during construction activities. The corrective action/risk management plan shall be prepared by an
Environmental Professional and be submitted to an
appropriate overseeing regulatory agency (e.g., DEH,
DTSC or RWQCB) for review. Regulatory agency
approval shall be obtained prior to commencing
earthwork activities.
• LU-5.3: A Health and Safety Plan (HSP) shall also be
prepared to establish health and safety protocols for
personnel working at the future project site. All
remedial measures shall be completed under
regulatory agency oversight and meet all applicable
federal, state and local laws, regulations and
requirements. Following completion, a report
documenting compliance with the provisions of the
corrective action/risk management plan and describing
the work completed shall be submitted to and
approved by the overseeing regulatory agency.
• LU-5.4: Groundwater monitoring wells associated with
the identified open leaking underground storage tank
(LUST) and cleanup program site (CPS) cases are
located on some Site parcels. These wells must be
protected during construction. Upon written approval
from the overseeing regulatory agency and the well
owner, the wells would be destroyed under permit
from the DEH prior to development activities.

Relocation of the wells may be required. Monitoring
wells that are no longer in use, or any unidentified
wells (such as former agricultural wells) encountered
during construction activities, shall be properly
destroyed in accordance with DEH requirements.
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy • LU-5.5: If a future development requires importing soil for property grading, the source and quality of
imported soil shall be documented and reported to the
appropriate overseeing regulatory agency prior to the
start of earthwork activities.
• LU-5.6: As part of the facility closure process for project site occupants with permits for storage of hazardous
materials and/or generation of hazardous waste,
facility closure activities (such as removal of remaining hazardous materials, cleaning of hazardous material
handling equipment, decontamination of building
surfaces, and waste disposal practices) shall be
coordinated with the San Mateo County Department of
Environmental Health (DEH) to ensure that required
closure activities are completed prior to redevelopment of site parcels or change in use.

Proposed Specific Plan Update Asbestos and Lead Based Paint Policies
• LU-5.7: Asbestos Survey. Prior to issuance of
demolition permits, an asbestos survey shall be
completed on all structures proposed for demolition
that are known or suspected to have been constructed
prior to 1978 in accordance with National Emission
Standards for Hazardous Air Pollutants (NESHAP)
guidelines. NESHAP guidelines require the removal of
potentially friable asbestos-containing materials
(ACMs) prior to building demolition or renovation that
may disturb the ACM.
• LU-5.8: Demolition of Buildings Potentially Containing Asbestos: Prior to demolition, future project applicants shall submit a letter of approval that includes a Job
Number (J#) shall be issued by BAAQMD, as proof of
notification. The applicant shall notify BAAQMD of any
demolition or renovation requiring the removal of 100
square feet or more, 100 linear feet or more, or 35
cubic feet or more of asbestos, at least 10 days prior to demolition or renovation. For residential buildings of
four or fewer dwelling units, future applicants can
notify BAAQMD 72 hours in advance with the payment
of an additional fee.
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy • LU-5.9: Lead-Based Paint Survey. Prior to issuance of a demolition permit, a lead-based paint (LBP) survey shall be completed on all structures proposed for demolition
that are known or suspected to have been constructed
prior to 1978. If LBP is identified, then federal and state construction worker health and safety regulations shall be followed during renovation or demolition activities.

If loose or peeling LBP is identified at the building, it shall be removed by a qualified lead abatement
contractor and disposed of in accordance with existing
hazardous waste regulations. Requirements set forth in
the CCR Title 8, Section 1532.1 shall be followed during demolition activities, including employee training,
employee air monitoring, and dust control. Any debris
or soil containing LBP or coatings shall be disposed of at landfills that meet acceptance criteria for the waste
being disposed.
• LU-5.10: Prior to future projects disposing of any
demolition waste (e.g., as fluorescent lamps, PCB
ballasts, lead acid batteries, mercury thermostats, and lead flashings), the demolition contractor shall
coordinate with DEH to determine if the waste is
hazardous and ensure proper disposal of waste
materials.

Impact NOI-1: Future projects
within 500 feet of residential land
uses and 200 feet of commercial
land uses could result in significant
temporary noise impacts to these
receptors. (Less than Significant
Impact with Mitigation
Incorporated)
MM NOI-1.1: Prior to the issuance of future developments’ grading permits, a typical construction noise logistics plan would include, but not be limited to, the following measures to reduce construction noise levels as low as practical:
• Limit construction activity to weekdays between 7:00
a.m. and 7:00 p.m. and Saturdays and holidays
between 9:00 a.m. and 7:00 p.m., with no construction
on Sundays;
• Limit combined construction noise levels (levels from all construction equipment used per phase) to an
hourly average of 80 dBA Leq for residential receptors
and to an hourly average of 90 dBA Leq for commercial
receptors;
• Utilize "quiet" models of air compressors and other
stationary noise sources where such technology exists;
• Equip all internal combustion engine-driven equipment with mufflers, which are in good condition and
appropriate for the equipment;
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy • Locate all stationary noise-generating equipment, such as air compressors and portable power generators, as
far away as possible from adjacent land uses;
• Locate staging areas and construction material areas as far away as possible from adjacent land uses;
• Prohibit all unnecessary idling of internal combustion engines;
• If impact pile driving is proposed, multiple-pile drivers shall be considered to expedite construction. Although
noise levels generated by multiple pile drivers would be higher than the noise generated by a single pile driver, the total duration of pile driving activities would be
reduced;
• If impact pile driving is proposed, temporary noise
control blanket barriers shall shroud pile drivers or be erected in a manner to shield the adjacent land uses.

Such noise control blanket barriers can be rented and
quickly erected;
• If impact pile driving is proposed, foundation pile holes shall be pre-drilled to minimize the number of impacts
required to seat the pile. Pre-drilling foundation pile holes is a standard construction noise control
technique. Pre-drilling reduces the number of blows
required to seat the pile. Notify all adjacent land uses of the construction schedule in writing;
• Designate a “disturbance coordinator” who would be
responsible for responding to any local complaints
about construction noise. The disturbance coordinator
will determine the cause of the noise complaint (e.g.,
starting too early, bad muffler, etc.) and will require that reasonable measures warranted to correct the
problem are implemented.
• Conspicuously post a telephone number for the
disturbance coordinator at the construction site and
include it in the notice sent to neighbors regarding the construction.

Impact NOI-2: Traffic noise levels
would result in an increase of three
dBA CNEL or more at two roadway
segments on Bay Road when 2040
cumulative plus project scenarios
are compared to existing
conditions and would increase
noise levels by one dBA CNEL over
cumulative no project conditions,
MM NOI-2.1: To address impacts related to traffic noise, the City shall ensure implementation of the following noise reduction strategies:
• Future development projects under the Specific Plan
Update shall pay a fair share contribution toward the
City’s installation of quieter pavement types such as
Open-Grade Rubberized Asphaltic Concrete which
could reduce noise levels by two (2) to three (3) dBA
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy resulting in a significant increase in
permanent noise levels.
(Significant and Unavoidable
Impact)
depending on factors such as existing pavement type
and traffic speed allowed.

Future development projects shall install or pay a fair share contribution toward the City's installation of
traffic calming measures along Bay Road (between
University Avenue and Pulgas Avenue) that include, but
not limited to, speed humps, bumps, or tables, or
traffic circles. Future traffic calming measures would be coordinated with the Menlo Park Fire Protection
District to ensure there would be no substantial effects on response times.

Impact NOI-3: Future
development’s operational
mechanical equipment could result
in noise levels that exceed exterior
noise levels at noise-sensitive
receptors identified in Section

8.52.030 in the City’s Municipal
Code. (Less than Significant Impact
with Mitigation Incorporated)
MM NOI-3.1: Future development projects within the Specific Plan area shall retain a qualified acoustical consultant to review mechanical equipment systems during final design of their proposed project consistent with standard City practice. The qualified acoustical consultant shall review selected equipment and determine specific noise reduction measures necessary to reduce noise to comply with the City’s noise level requirements set forth in Section 8.52.320 of the City’s Municipal Code. Noise reduction measures could include, but are not limited to, selection of equipment that emits low noise levels and/or installation of noise barriers, such as enclosures and parapet walls, to block the line-of-sight between the noise source and the nearest receptors. Additionally, enclosures and interior wall treatments shall be considered to reduce noise exposure within the on-site units. Alternate measures may include locating equipment in less noise-sensitive areas, where feasible.

Impact NOI-4: Future construction
activities could result in
groundborne vibration levels
exceeding 0.3 in/sec PPV limit at
nonhistorical buildings, which
would result in a significant
vibration impact. (Less than
Significant Impact with Mitigation
Incorporated)
MM NOI-4.1: To address potential impacts related to vibration, the project will implement the following vibration controls in addition to the measures included in Policy 7.11 of the City’s General Plan:
• Comply with the construction noise ordinance to limit hours of exposure. The City’s Municipal Code allows
construction activities between the hours 7:00 a.m. and 6:00 p.m. on weekdays and between 9:00 a.m. and
5:00 p.m. on Saturdays. Construction activity is not
permitted on Sundays or national holidays.
• Prohibit the use of heavy vibration-generating
construction equipment within 25 feet of residences.

Use a smaller vibratory roller, such as the Caterpillar model CP433E vibratory compactor, when compacting
materials within 25 feet of residences adjoining the
site.
• Avoid dropping heavy equipment within 25 feet of
residences. Use alternative methods for breaking up
existing pavement, such as a pavement grinder, instead
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy of dropping heavy objects within 25 feet of residences
adjoining the site.
• The contractor shall alert heavy equipment operators
to the close proximity of the adjacent structures so
they can exercise extra care.
• For projects requiring impact or vibratory pile driving, a Construction Vibration Monitoring, Treatment, and
Reporting Plan shall be implemented to document
conditions prior to, during, and after vibrationgenerating construction activities. All plan tasks shall be undertaken under the direction of a licensed
Professional Structural Engineer in the State of
California and be in accordance with industry-accepted
standard methods. The construction vibration
monitoring plan shall include, but not be limited to, the following measures:
• Document conditions at all structures located
within 90 feet of pile driving activities and at
historic structures located within 275 feet of pile
driving activities prior to, during, and after
vibration-generating construction activities. All
plan tasks shall be undertaken under the
direction of a licensed Professional Structural
Engineer in the State of California and be in
accordance with industry-accepted standard
methods. Specifically:
• Vibration limits shall be applied to vibrationsensitive structures located within 90 feet of any high impact construction activities, such as
pile driving, and 275 feet of historic buildings.
• Performance of a photo survey, elevation
survey, and crack monitoring survey for each
structure of normal construction within 90
feet of any high impact construction activities
and each historic structure within 275 feet of
pile driving activities. Surveys shall be
performed prior to any construction activity, in
regular intervals during construction, and after
project completion, and shall include internal
and external crack monitoring in structures,
settlement, and distress, and shall document
the condition of foundations, walls and other
structural elements in the interior and exterior
of said structures.
• Develop a vibration monitoring and construction
contingency plan to identify structures where
monitoring would be conducted, set up a
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Table ES-1: Summary of Significant Impacts and Mitigation Measures/Specific Plan Update Policies Impact Mitigation Measure/Proposed Specific Plan Update Policy vibration monitoring schedule, define structurespecific vibration limits, and address the need to conduct photo, elevation, and crack surveys to
document before and after construction
conditions. Construction contingencies shall be
identified for when vibration levels approached
the limits.
• At a minimum, vibration monitoring shall be
conducted during all pile driving activities.
• If vibration levels approach limits, suspend
construction and implement contingency
measures to either lower vibration levels or
secure the affected structures.
• Designate a person responsible for registering
and investigating claims of excessive vibration.

The contact information of such person shall be
clearly posted on the construction site.
• Conduct a post-construction survey on
structures where either monitoring has
indicated high vibration levels or complaints of
damage has been made. Make appropriate
repairs or compensation where damage has
occurred as a result of construction activities.
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Summary of Project Objectives
The stated objectives of the Ravenswood Specific Plan Update are to:

1. Blend office, R&D, industrial, retail, and residential uses together with public open space, amenities, and civic uses to create a complete neighborhood defined by increased diversity of activity, mobility choices, numerous high-quality parks, and vibrant community-serving spaces in the Specific Plan area.

2. Create smaller, more walkable blocks through the addition of publicly accessible streets, greenways, alleys, and multi-use pathways.

3. Maintain key view corridors to the Bay through building setbacks, stepbacks, and linear greenway networks.

4. Evolve Bay Road into a series of vibrant, community-serving nodes that are lined with active business and civic spaces through the use of frontage design standards.

5. Improve circulation and mobility in the Plan area by increasing the interconnectedness of the network and increasing opportunities to access the Bay/waterfront. Promote walkability through wide sidewalks covered with tree canopy, buffered bicycle facilities on key public streets, and a welcoming network of open space.

6. Enhance pedestrian and bicycle connections to the surrounding region, light rail, services, housing, and employers, creating a range of new public spaces and transportation options.

7. Achieve a 40 percent or greater reduction in single-occupancy vehicle trips to and from the plan area through improvements to transit service such as a public shuttle system and a multimodal connection to the planned Willow Village rail station.

8. Respect the existing single-family neighborhoods by requiring careful height and massing transitions for new buildings adjacent to single-family houses. Buildings would be smallest adjacent to existing neighborhoods and designed to respect the scale and character of the existing neighborhood.

9. Ensure that the local community benefits from new development, and that new developments specifically prioritize those benefits identified by the City.

10. Expand economic opportunity for residents through workforce development that provide consistent access to both skilled jobs (trainings and internships, subsidized spaces for new businesses) and attainable living wage jobs (funding and space for local merchants, vocational classes, PDR/fabrication/makerspaces & light industrial spaces).

11. Seek to address the current jobs-housing imbalance and maximize production of affordable housing units in the Plan area through a minimum linkage ratio between new housing units and office space that requires office developers to pay an Affordable Housing Commercial Linkage Fee.

12. Minimize displacement of existing residents by expanding the availability of incomerestricted rental housing (with a focus on very low and low incomes as is appropriate for East Palo Alto, and to a lesser extent moderate incomes) and through support from developers for home ownership programs and funds.

13. Support the City’s sustainability goals by promoting green buildings, aggressive water and energy conservation, and adherence to the City’s Reach Code standards. 230
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14. Broaden the City’s tax base by attracting multiple large-scale commercial and/or industrial development projects.

15. Stabilize the City’s finances and fiscal health over the long term through a significant increase over time (as development occurs) in the value of property taxes, Measure HH taxes, and other revenues collected in the Specific Plan area.

16. Facilitate the construction of the maximum amount of (deed-restricted) affordable housing by subsidizing it with linked non-residential development, in order to lessen indirect displacement and meet Regional Housing Needs Allocation (RHNA) housing goals and the General Plan Housing Element.

17. Enable substantial improvements to the utility systems and other infrastructure in the Specific Plan area, by maximizing the amount of development that can fund these upgrades.

Summary of Alternatives to the Proposed Project
CEQA requires that an EIR identify alternatives to a project as it is proposed. CEQA Guidelines Section 15126.6 specifies that an EIR should identify alternatives which “would feasibly attain most of the basic objectives of the project but would avoid or substantially lessen any of the significant effects of the project.” Below is a summary of the project alternatives analyzed in this Draft SEIR. A full analysis of the project alternatives is provided in Section 7.0 Alternatives.

Alternatives Considered but Rejected
The following alternatives were considered but rejected and described in detail in Section 7.3.1. • Location Alternative
o A Location Alternative would need to be at least of comparable size and have the potential to accommodate similar uses as the Specific Plan area (approximately 207 acres) within the City of East Palo Alto. There are no alternative locations within the City that meets this criteria.

Analyzed Alternatives
The following alternatives were evaluated as alternatives to the project and described in detail in Section 7.3.2.
• No Project/No New Development Alternative (assumes the Specific Plan is repealed and the Specific Plan area remains as it is today)
• No Project/Adopted Specific Plan Alternative (assumes the 2013 Specific Plan would remain the planning document for the Specific Plan area)
• Reduced Scale Alternative (assumes a 40 percent reduction of future development assumed under the Specific Plan Update, Scenario 2 – the most intensive scenario) 231
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The environmentally superior alternative would be the No Project/No New Development Alternative given there would be no changes to the existing conditions or environmental impacts in the Specific Plan area. CEQA Guidelines 15126.6 (e)(2) state that if the environmentally superior alternative is the no project alternative, the EIR shall also identify an environmentally superior alternative among the other alternatives. Among the alternatives that would involve new development within the Specific Plan area, the environmentally superior alternative is the No Project/Adopted Specific Plan Alternative given it would result in less development and decreased impacts than the Specific Plan Update and Reduced Scale Alternative 232

East Palo Alto City CouncilJuly 25, 2024

East Palo Alto City Council
July 25, 2024