Agenda packet — East Palo Alto City Council, July 7, 2026 (part 1 of 2)

EAST PALO ALTO CITY COUNCIL

REGULAR SESSION AMENDED AGENDA
Tuesday, July 7, 2026, 6:00 PM
EPA Government Center
2415 University Avenue, First Floor
East Palo Alto, CA 94303
NOTICE
This meeting will be held virtually and in- person at the Council Chambers located on 2415 University Ave, First Floor East Palo Alto, CA 94303. The virtual portion of this City Council meeting will be conducted in accordance with City of East Palo Alto Resolution adopted pursuant to Assembly Bill 361.

The public may participate in the City Council Meeting via Zoom Meeting or by attending inperson in the Council Chambers at 2415 University Ave, First Floor East Palo Alto, CA 94303.

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REQUESTS TO APPEAR REMOTELY
Pursuant to Government Code Section 54953, members of the body may appear remotely for the following reasons:

1. Teleconference Exception (Gov’t Code § 54953(b)): None.

2. Just Cause (Gov’t Code § 54953(j)(2)(D)): Martha Barragan. Contagious illness prevents the member from attending the meeting in person (Id., subd. (j)(2)(B));

3. Emergency Circumstances (Gov’t Code § 54953(f)(A)(ii) (Approval Required)): None East Palo Alto City Council July 7, 2026 Agenda
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1. CALL TO ORDER AND ROLL CALL

2. APPROVAL OF THE AGENDA

3. APPROVAL OF CONSENT CALENDAR

3.1 Memorandum of Understanding with Bay Area Community Resources Recommendation: Adopt a resolution:

1. Authorizing the City Manager to negotiate and execute a Memorandum of Understanding with Bay Area Community Resources (BACR), in a form approved by the City Attorney, for the recruitment of an 11-month limited term Sustainability Service Corps Fellow, in a match amount notto-exceed $31,000.00.

2. Find that the action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it's not a "project" pursuant to 15378(b)(4) because it's a fiscal activity which doesn't involve any commitment to any specific project which may result in a potentially significant impact on the environment.

3.2 Execution of Cooperation Agreement with San Mateo County for participation in the Urban County for Fiscal Years 2027, 2028 and 2029 Recommendation: Recommendation
Adopt a resolution:

1. Authorizing the City Manager to execute Amendment No. 2 to the Cooperation Agreement (dated September 20, 2017, as previously amended in July 2023) between the City of East Palo Alto and San Mateo County for participation in the Urban County for fiscal years 2027, 2028, and 2029 and one subsequent three-year period thereafter.

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

3.3 Authorizing City Manager to Administer Affordable Housing Preservation Program
Recommendation: Recommendation
Adopt a resolution:
1) Directing the City Manager, or designee, to adopt the Affordable Housing Preservation guidelines to administer the City’s Affordable Housing Preservation Program and update the guidelines at the City Manager’s or designee’s discretion, provided that it is consistent with the resolution and its East Palo Alto City Council July 7, 2026 Agenda
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purpose; and
2) Authorizing the City Manager, or designee, to issue a Notice of Funding Availability (NOFA) in the amount of $2,099,044 and disperse the funds according to the guidelines and the allocations in the FY 2026-2027 budget; and
3) Finding that the proposed is exempt from the California Environmental Quality Act (CEQA) as it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

3.4 Monthly Cash Treasury Report for April 2026
Recommendation: Accept and file the Cash Treasury Report for the month of April 2026

3.5 Monthly Cash Treasury Report for May 2026
Recommendation:

Accept and file the Cash Treasury Report for the month of May 2026.

3.6 Independence Day
Recommendation: Present the proclamation.

3.7 City Council Meeting Minutes
Recommendation:

Adopt the July 7, 2026, City Council Meeting Minutes

3.8 City Anniversary Proclamation
Recommendation: Present the City Anniversary Proclamation.

4. CLOSED SESSION

5. PUBLIC COMMENT

6. INFORMATIONAL REPORTS

6.1 Climate Action Plan Implementation Report
Recommendation: Receive informational report.

7. SPECIAL PRESENTATIONS
East Palo Alto City Council July 7, 2026 Agenda
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8. POLICY AND ACTION

8.1 Measure HH Workforce Development Program Request for Proposals Recommendation: Recommendation

1. Receive report on draft Request for Proposals for the City’s Measure HH Workforce Development Program;

2. Provide input on the recommended enhancements to the Measure HH Workforce Development Program and on how staff should measure the success of the eventual consultants; and
Adopt a resolution:
a. Directing the City Manager to issue a request for proposals (“RFP”) to continue the Measure HH Workforce Development Program in an amount not-to-exceed of $1.1 million, with recommended program, policy and operational enhancements; and
b. Finding that the proposed action does not constitute a “project” within 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.

9. PUBLIC HEARINGS

9.1 Temporary Housing Development Incentive Program Ordinance Introduction
Recommendation:

Recommendation
Staff recommends that the City Council:

Adopt a resolution to:

1. Waive the first reading and introduce an uncodified ordinance titled “Temporary Housing Development Incentive Program” (“THDIP”) to encourage the construction of new housing by reducing inclusionary housing obligations for residential developments, including the residential component of mixed-use projects, effective until December 30, 2027 (with complete Vertical Building Permit application due by January 30, 2028), or until some other sunset date approved by the Council;
East Palo Alto City Council July 7, 2026 Agenda
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2. Direct the City Manager or designee to adopt Administrative Guidelines for the implementation of the THDIP; and

3. Find that the proposed actions do not constitute “projects” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and 15378(b)(5) (governmental, administrative or financial activity) and Section 15061(b)(3) (common sense).

Adopt another resolution to:

1. Appropriate an additional $13,300 from the Housing In Lieu Fund (Fund 207) and authorize the City Manager to amend the agreement with Street Level Advisors to add $13,300 for a new total not-to-exceed amount of $88,300; 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 15378(b)(5) (governmental, administrative or financial activity) and Section 15061(b)(3) (common sense).

9.2 Resolution Determining Necessity for, and Introduction (First Reading) of an Ordinance Ordering Submission to the Voters of, a $125,000,000 General Obligation Bond Measure for Civic, Recreational, Water, and Stormwater Improvements at the November 3, 2026 Consolidated General Election
Recommendation:

Staff recommends that the City Council take the following actions:

1. Adopt a resolution determining that the public interest and necessity demand the acquisition, construction and improvement of certain municipal improvement projects, and their financing through the issuance of general obligation bonds (requires a two-thirds vote of all members of the City Council);

2. Introduce, waive the first reading of, and set for second reading and adoption on July 21, 2026, an ordinance ordering the submission to the qualified voters of the City, at the November 3, 2026, consolidated general election, of a proposition authorizing the City to incur general obligation bonded indebtedness in a principal amount not to exceed East Palo Alto City Council July 7, 2026 Agenda
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$125,000,000 (the ordinance requires a two-thirds vote of all members for adoption); and

3. Direct staff to return with the Resolution Calling the Election (requesting consolidation with the County’s statewide general election and establishing the ballot label and procedural schedule) together with the second reading of the ordinance on July 21, 2026.

9.3 Sand Hill Development Agreement Amendment (Woodland I) Recommendation:

Staff recommends the City Council take the following actions:

1. Waive first reading and introduce an Ordinance:
a. Approving the First Amendment to the Development Agreement between the City of East Palo Alto and Woodland Park Property Owner A, LLC for the Woodland Park Euclid Improvements Project, amending provisions related to (a) the timing of Impact Fee payments, (b) Off-Site Affordable Housing Units, (c) water infrastructure, (d) storm drainage improvements, (e) impact fee credits, and (f) assignment rights;
b. Authorize the City Manager to execute the First Amendment to the Development Agreement in a form approved by the City Attorney; and c. Find that the adoption of the Ordinance is consistent with the previously adopted Environmental Impact Report (EIR) and that none of the conditions set forth in California Environmental Quality Act (CEQA) Guidelines Section 15162 and 15164 that would require a subsequent or supplemental EIR or Addendum to the EIR are present; and

2. Direct the City Clerk to record the First Amendment to the Development Agreement in the Official Records of San Mateo County in accordance with Government Code Section 65868.5.

10. ADJOURN CITY COUNCIL SPECIAL MEETING AND RECONVENE TO THE

EAST PALO ALTO SANITARY DISTRICT

11. EPASD CONSENT CALENDAR

11.1 Award of Contract for EPASD design projects 1.1 and 1.2 Recommendation: Award a design contract to Freyer and Laureta to design EPASD projects 1.1 and 1.2

12. EPASD PUBLIC COMMENT

13. EPASD BOARD PUBLIC
HEARINGS 13.1
Acceptance of East Palo Alto Sanitary District Sewer Capacity Fee Update Study and Adoption of Updated Sewer Capacity Fee East Palo Alto City Council July 7, 2026 Agenda
6 Recommendation: 6
Acceptance of East Palo Alto Sanitary District Sewer Capacity Fee Update Study and Adoption of Resolution to Update Sewer Capacity Fee

14. ADJOURN EAST PALO ALTO SANITARY DISTRICT BOARD MEETING

AND RECONVENE TO THE CITY COUNCIL MEETING

15. COUNCIL REPORTS

15.1 Letter from Mayor Webster Lincoln

16. ADJOURNMENT
Upcoming meetings:

July 21, 2026 Regular Meeting 6:00 PM
July 28, 2026 Study Session 6:00 PM
September 1, 2026 Regular Meeting 6:00 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: 1) 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; 2) in an envelope at the entryway lobby on the 2nd Floor, after business hours.. A copy of written material, pictures, etc. should be provided for this purpose.

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

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

POSTED: June 26, 2026
AMENDED: July 2, 2026 at 4:56 PM
Staff report to 9.2 added: July 6, 2026 at 4:58 PM
ATTEST:

James Colin
City Clerk
East Palo Alto City Council July 7, 2026 Agenda
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CONSENT ITEM 3.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Humza Javed, Public Works Director
Jessica Felix, Management Analyst
SUBJECT: Memorandum of Understanding with Bay Area Community Resources Recommendation
Adopt a resolution:

1. Authorizing the City Manager to negotiate and execute a Memorandum of Understanding with Bay Area Community Resources (BACR) in the amount of $31,000, in a form approved by the City Attorney, for the recruitment of an 11-month limited term Sustainability Service Corps Fellow, with a City match amount not-to-exceed $31,000.

2. Finding that the action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

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

Priority: Public Health, Safety, and Quality of Life
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 8 CONSENT ITEM 3.1
partnership with Bay Area Community Resources (BACR) and its Sustainability Service Corps (SSC) 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 program that is partially funded by the United States federal government. BACR administers this competitive program, with 50% of the cost of the fellowship covered by federal funds. The City is responsible for the remaining 50% ($31,000).

The City has been in a partnership with BACR since September 2022 and has since applied annually to this competitive program. After funding delays due to unforeseen federal cuts from the Department of Government Efficiency (DOGE) in April 2025, BACR worked to secure funding for a fifth placement, and the City was notified of its selection for the 2026-2027 program year in July of 2026.

The recruitment phase of the SSC Program is expected to commence in early August. This program year, SSC is working to place fellows in sustainability-related fields across the Bay Area, including in other local government agencies, non-profits, and schools. The City of East Palo Alto will receive one of these fellows to fulfill the Sustainability Coordinator Fellowship role, and he or she will work with the Environmental Division under the Public Works Department.

Analysis
The City’s Environmental Division is made up of one permanent full-time and one permanent part-time staff member. The Sustainability Coordinator Fellowship position allows permanent City staff to focus on Division priority projects while receiving support from the fellow on additional tasks related to sustainability, community outreach, and community event coordination. This year the City expanded the fellowship scope of work to include issues highlighted by the City Council. The fellow will work with Environmental Division staff on preparing and implementing a more robust illegal dumping outreach campaign as well as supporting flood resiliency education and the City’s Federal Emergency Management Agency (FEMA) Community Rating System program.

These tasks will be undertaken by the fellow in addition to the existing scope of work that fellows have been supporting since 2022, including: assisting in the implementation of required provisions in Senate Bill 1383 (regarding mandatory organic waste collection), assisting in preparing the City’s National Pollutant Discharge and Elimination System (NPDES) Permit annual report, continuing to support fleet electrification efforts, leading efforts to conduct additional bilingual outreach related to City sustainability programming, organizing and coordinating annual community events (including the Earth Day Festival), and identifying and applying for outside funding that may support the abovementioned programs and other programs in the CAP.

Fiscal Impact
A budget of $31,000, funded through the City’s General Fund, was included in the adopted FY 2026/2027 annual Public Works Budget for the Environmental Division.

Public Notice
9 CONSENT ITEM 3.1
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
Finding that the action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

Government Code § 84308
Applicability of Levine Act: Yes.

Analysis of Levine Act Compliance: The signatory for the MOU is the Director of National Service Adolfo Rivera for BACR. Staff is unaware of any other parties or participants relevant to the Commission’s consideration of this item.

Attachments

1. Resolution

2. Draft Memorandum of Understanding
10 Resolution No. XX-2026 1 of 2
RESOLUTION NO. XX– 2026

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A $31,000

MEMORANDUM OF UNDERSTANDING WITH BAY AREA COMMUNITY RESOURCES, IN A FORM APPROVED BY THE CITY ATTORNEY, FOR THE RECRUITMENT OF AN 11-MONTH

LIMITED TERM SUSTAINABILITY SERVICE CORPS FELLOW, WITH A CITY MATCH AMOUNT NOT-TO-EXCEED $31,000
WHEREAS, Bay Area Community Resources (BACR) collaborates with public and nonprofit organizations across the State of California to recruit, train, and place AmeriCorps Fellows at public and nonprofit organizations; and
WHEREAS, the City of East Palo Alto has applied for a Sustainability Service Corps Fellow to support the work of implementing the Climate Action Plan and Adaptation Strategies 2030 (CAP) and other environmental projects in the Public Works Department; and WHEREAS, the City of East Palo Alto is dedicated to supporting the development of early career sustainability 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 Fellow by providing supervision, direction, and meaningful inclusion in implementation of the City’s sustainability, climate, and environmental projects.

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. Authorizes the City Manager to negotiate and execute a $31,000 Memorandum of Understanding with Bay Area Community Resources (BACR), in a form approved by the City Attorney, for the recruitment of an 11-month limited term Sustainability Service Corps Fellow, with a City match amount not-to-exceed $31,000.00; and

3. Finding that the action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment. 11 Resolution No. XX-2026 2 of 2
PASSED AND ADOPTED this 7th day of July, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
12 SUSTAINABILITY SERVICE CORPS

PLACEMENT AGREEMENT
This PLACEMENT AGREEMENT (“Agreement”) is made and entered into as of [DATE SENT] by and between Bay Area Community Resources, EIN 94-2346815 (hereinafter referred to as “BACR”) and City of East Palo Alto (hereinafter referred to as “PARTNER”) to HOST Sustainability Service Corps (SSC) Fellows at PARTNER site(s). Collectively, BACR and PARTNER are hereinafter referred to as the “Parties.”

RECITALS
The Sustainability Service Corps (SSC) is an initiative of California Volunteers, Office of the Governor (CV), designed to educate adults and youth about environmental stewardship and/or environmentally-conscious practices, support greenhouse gas reduction programs or other climate action projects, develop Greenhouse Gas Inventories, Climate Action Plans, and other capacity-building documents; and conduct outreach to raise community engagement.

BACR will collaborate with public agencies and nonprofit organizations across the state of California to recruit, train, and place Sustainability Service Corps Fellows, hereinafter referred to as “Fellow(s).”

1. The Sustainability Service Corps Fellowship provides Climate Education for Adults and Youth; Climate Action Projects; Community Outreach; and Volunteer Engagement, in California through service provided by AmeriCorps Fellows (“Fellows”).

2. Fellows can only serve on contracted and allowable service activities.

3. The high-profile nature of the program necessitates Partner participation in timely outcome reporting, storytelling, and responsiveness to media engagement.

4. Partner desires to host Fellow(s), and BACR desires to provide Fellows’ service to Partner. This document establishes the basic guidelines and expectations between the Partner and BACR.

5. The Partner and BACR enter into this Agreement in order to memorialize the terms of BACR's performance of the services and the Partner's obligations with respect thereto.

I. AGREEMENT
BACR has contracted with AmeriCorps (formerly Corporation for National and Community Service – CNCS) through California Volunteers to implement the Sustainability Service Corps Fellowship. Fellows can only serve on contracted activities approved by AmeriCorps and California Volunteers and must abide by Federal guidelines for AmeriCorps program implementation.

The objectives of the program are as follows:
● Partner will be able to report measurable outcomes of SSC Performance Measures, including: 1) Climate Education for Adults and Youth; 2) Climate Action Projects; 3)

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13 Community Outreach; and 4) Volunteer Engagement, developed collaboratively by the Parties.
● Fellows will develop a practical skill set and expertise in climate change management at the community level.
● Communities served by Partner will increase community participation in local climate action needs and projects, and report a change in behavior to better protect the environment.
● Partner agrees that any Fellows assigned to the Partner will only participate in the activities described in the mutually agreed upon Scope of Work. The Scope of Work will be completed within 45 days of the Fellow being assigned to the site.

Fellows may raise resources directly in support of Partner’s service activities.

Examples of fundraising activities Fellows members may perform include, but are not limited to, the following:
(1) Seeking donations of books from companies and individuals for a program in which volunteers teach children to read;
(2) Writing a grant proposal to a foundation to secure resources to support the training of volunteers;
(3) Securing supplies and equipment from the community to enable volunteers to help build houses for low-income individuals;
(4) 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;
(5) Seeking donations from alumni of the program for specific service projects being performed by current members.

Fellows may not:
(1) Raise funds for living allowances or for an organization's general (as opposed to project) operating expenses or endowment;
(2) Write a grant application to AmeriCorps or to any other Federal agency. (3) Spend more than 10% of their term of service performing fundraising activities.

In addition to only serving on contracted performance measure service activities, the following activities are prohibited (see 45 CFR § 2520.65):

1. Attempting to influence legislation;

2. Organizing or engaging in protests, petitions, boycotts, or strikes;

3. Assisting, promoting, or deterring union organizing;

4. Impairing existing contracts for services or collective bargaining agreements;

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14 5. Engaging in partisan political activities or other activities designed to influence the outcome of an election to any public office;

6. 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;

7. 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;

8. Providing a direct benefit to:
a. A business organized for profit;
b. A labor union;
c. A partisan political organization;
d. A nonprofit organization that fails to comply with the restrictions contained in section 501(c)(3) of the Internal Revenue Code of 1986 related to engaging in political activities or a substantial amount of lobbying except that nothing in these provisions shall be construed to prevent participants from engaging in advocacy activities undertaken at their own initiative; and e. An organization engaged in the religious activities described above;

9. Conducting a voter registration drive;

10. Providing abortion services or referrals for the receipt of such services; and

11. Such other activities that AmeriCorps may prohibit.

SSC Fellows, like other private citizens, may participate in the above-listed activities on their own time, at their own expense, and on their own initiative. However, the AmeriCorps and Sustainability Service Corps logos must not be worn while doing so.

Additionally, per the Code of Federal Regulations § 2540.100, the following restrictions apply:

A. Supplantation. AmeriCorps assistance may not be used to replace State and local public funds that had been used to support programs of the type eligible to receive CNCS support. For any given program, this condition will be satisfied if the aggregate non-Federal public expenditure for that program in the fiscal year in which support is to be provided is not less than the previous fiscal year.

B. Religious use. AmeriCorps assistance may not be used to provide religious instruction, conduct worship services, or engage in any form of proselytization.

C. Political activity. AmeriCorps assistance may not be used by program participants or staff to assist, promote, or deter union organizing; or finance, directly or indirectly, any activity designed to influence the outcome of a Federal, State or local election to public office.

D. Contracts or collective bargaining agreements. AmeriCorps assistance may not be used to impair existing contracts for services or collective bargaining agreements.

E. Nonduplication. AmeriCorps assistance may not be used to duplicate an activity that is already available in the locality of a program. And, unless the requirements of paragraph (f) of this section are met, AmeriCorps assistance will not be provided to a private nonprofit entity to conduct activities that are the same or

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15 substantially equivalent to activities provided by a State or local government agency in which such entity resides.

F. Nondisplacement.

1. An employer may not displace an employee or position, including partial displacement such as reduction in hours, wages, or employment benefits, as a result of the use by such employer of a participant in a program receiving AmeriCorps assistance.

2. An organization may not displace a volunteer by using a participant in a program receiving AmeriCorps assistance.

3. A service opportunity will not be created under this chapter that will infringe in any manner on the promotional opportunity of an employed individual.

4. A participant in a program receiving AmeriCorps assistance may not perform any services or duties or engage in activities that would otherwise be performed by an employee as part of the assigned duties of such employee.

5. A participant in any program receiving assistance under this chapter may not perform any services or duties, or engage in activities, that— i. Will supplant the hiring of employed workers; or
ii. Are services, duties, or activities with respect to which an individual has recall rights pursuant to a collective bargaining agreement or applicable personnel procedures.

6. A participant in any program receiving assistance under this chapter may not perform services or duties that have been performed by or were assigned to any—
i. Presently employed worker;
ii. Employee who recently resigned or was discharged;
iii. Employee who is subject to a reduction in force or who has recall rights pursuant to a collective bargaining agreement or applicable personnel procedures;
iv. Employee who is on leave (terminal, temporary, vacation, emergency, or sick); or
v. Employee who is on strike or who is being locked out.

Per Federal guidelines and BACR policies, the Sustainability Service Corps Fellowship must follow equal opportunity employment requirements and be accessible to persons with disabilities by providing reasonable accommodation. In support of this:

1. BACR and Partner will comply with Equal Opportunity Employment guidelines.

2. BACR and Partner will endeavor to make reasonable accommodations to known physical or mental limitations of Fellows with disabilities unless the accommodation would impose an undue hardship on the program operations.

3. BACR and Partner will endeavor to accommodate the sincere religious beliefs of Fellows to the extent such accommodation does not pose an undue hardship on the Organization's operations.

4. BACR and Partner will not allow any form of retaliation against individuals who raise issues of equal employment opportunity or reasonable accommodation.

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16 5. BACR, as the implementing agency of the program, is the only party that can write up or terminate a Fellow. Partners must work with SSC staff to address disciplinary issues, but cannot issue a warning or terminate a Fellow themselves.

6. BACR, as the implementing agency, supports the Fellows through BACR’s Human Resources Department, People and Culture (P&C). Partners who want to involve Human Resources for disciplinary concerns or accommodations must defer to BACR People and Culture. Partner’s HR department can work with BACR People and Culture, but cannot address HR concerns without including BACR.

II. Scope of Services
BACR will perform the following services:

General Program Responsibilities

1. BACR will recruit and screen Fellow(s).

2. Conduct mandatory background checks prior to the Fellows’ start date.

3. Be the official employer-of-record for the Fellow(s), which includes providing the living stipend bi-weekly (7th and 22nd of each month), as well as coverage options for healthcare, childcare, and student loan deferment.
a. Any payment made to BACR pursuant to this Agreement shall be the full and complete compensation to which BACR and BACR’s offices, employees, agents, and subcontractors are entitled for performance of any work by Fellow(s) under this Agreement. Neither BACR nor BACR’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the Partner. The Partner will not make any federal or state tax withholdings on behalf of BACR. The Partner shall not be required to pay any workers’ compensation insurance on behalf of BACR. BACR shall pay, when and as due, any and all taxes incurred as a result of BACR’s payment hereunder, including estimated taxes, and shall provide Partner with proof of such payments upon request.

4. Assign a Regional Supervisor to support Partner site and Fellow during the term of service.

5. Provide clear guidelines to Fellows regarding program regulations and expectations.

6. Work to support and guide Fellows, addressing any concerns that might develop during the service year.

7. Work to provide support and guidance for Partners, addressing any concerns that might develop during the service year, in conjunction with SSC staff and CV.

8. Provide HR support through BACR’s People and Culture department.

9. BACR provides statutory Workers’ Compensation and Employer’s Liability, and Commercial General Liability insurance for all SSC Fellows in accordance with Section VII BACR Insurance Requirements.

10. BACR reserves the right to terminate a SSC Fellow for cause at its sole discretion.

Under no circumstances may partner sites terminate or release a Fellow from their service term except for personal injury, bodily injury, or property damage to third parties by SSC Fellow. Any performance or conduct concerns must be reported to BACR, which will handle all disciplinary actions in alignment with program policy.

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17 11. BACR reserves the right to remove SSC Fellows from Partners should the placement become unsuitable or unsafe for Fellows or Partners violate the terms of this Agreement. Partner reserves the right to remove SSC Fellows should the placement become unsuitable or unsafe for Partner. BACR will make reasonable attempts to address and appropriately mitigate concerns with Partners.

Expectations for Regional Supervisor (BACR staff)

1. Offer monthly check-in meetings, email support, professional development resources, and conflict resolution (if needed).

2. Provide virtual supervision meetings attended by Fellow(s), Site Supervisor, and the Regional Supervisor.

3. Conduct two (2) Fellowship performance reviews which include surveys completed by Partner site and Fellow. Debrief conversations over the results of the review will be facilitated by the Regional Supervisor.

4. Define metrics for the Fellow, including: 1) Climate Education for Adults and Youth; 2) Climate Action Projects; 3) Community Outreach; and 4) Volunteer Engagement, developed collaboratively by the Parties.

Fellow Responsibilities

1. Pass a state, national, and National Sex Offender Public Website (NSOPW) background check before starting their service year.

2. Complete at least 170 hours, and no more than 340 hours, of training through dedicated SSC Fellow training, development, and service days. a. If a Fellow is unable to complete the expected number of hours by the end date in their contract (i.e. Member Service Agreement) due to allowable unforeseen circumstances that disrupt their term they may, at the discretion of BACR and Partner, be allowed time to complete their hours at Partner site, or at another approved agency.

The last day Fellows are eligible to earn hours for the 2026-27 program year will be August 31, 2027.

3. Serve an average of 40 hours per week for 11 months, serving a minimum of 1,700 total hours.

4. Fellows must consistently strive for an average of 40 hours per week of service.

Fellows cannot serve part-time hours with the intention of not completing the program.

5. If BACR is not able to secure an adequate number of placement sites to allow all Fellows to be placed in a 1,700 hour term, they may be offered a shorter term (e.g. 1,200 hours or 900 hours) depending on availability. SSC staff will reach out to impacted Fellows to coordinate term lengths if/when these circumstances occur.

6. Participate in days of national service, including, but not limited to: Martin Luther King, Jr. Day of Service.

7. Comply with guidelines for performance measures and abide by regulations on prohibited activities described in Section I above.

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18 III. Partner Requirements, Responsibilities, and Expectations In order to provide a clear and well-defined service experience for participating Fellows, Partner shall meet and uphold the following requirements to host a Fellow:

Partner Responsibilities:

1. Interview and select Fellows from the pool of pre-screened and qualified candidates provided by SSC staff. Partner staff must make time to meet with candidates and select Fellows who will be a good fit for the program and their site. a. Cannot select SSC Fellows who are related to any employees of Partner who are in the supervision chain or would be working with the Fellow.

2. Identify one staff member to act as the “Site Supervisor” (SS) for the project who will act as the point person for both the Fellows and SSC staff. SS must understand and agree to follow all program requirements and expectations. Partners are responsible for communicating with their intended Site Supervisor about AmeriCorps regulations, program scope, and requirements.

3. 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 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).

4. Prohibit all forms of discrimination and harassment based on the protected categories of race, color, national origin, sex, age, religion, sexual orientation, disability (mental or physical), political affiliation, marital or parental status, pregnancy, reprisal, genetic information (including family medical history), or military service. Partners must be free from all forms of discrimination and harassment as articulated in the AmeriCorps Program Civil Rights and Non-Harassment Policy.

5. For those situations where it is determined teleservice is appropriate or when a number of a Fellow’s service hours can properly be accrued through teleservice; a. Teleservice is appropriate only when the activity can be meaningfully supervised and hours verified independently. Additionally, Fellows must live within the community they are serving through teleservice. If it is determined that Fellows will be allowed to teleserve, Partner must provide an established agreement.
● The agreement must state that Fellows cannot perform teleservice full-time; only hybrid (part-time teleservice, part-time in-person) will be approved. ● The agreement must specify an in-person schedule with a set location, including a minimum of one in-person meeting per week.
b. Remote service - where the Fellow is not located within the commuting area of the geographic community where the service is to occur and is not expected to be physically present at the service site and/or community events, is not allowed.
c. Virtual service site - organizations with no physical location are not allowed.

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19 6. Provide an office location for Fellows to meet, with adequate professional workspace for at least one (1) day of on-site, in-person service each week. At a minimum, this includes a desk, workspace, computer, bathrooms, adequate break areas, a private meeting space for Regional Supervisor check-ins, and other workplace essentials for Fellows to support the intended project. Ensure that the site and workplace are accessible to individuals with disabilities if needed.

7. Provide at least one (1) specific climate action project that aligns with SSC’s AmeriCorps objectives that the Fellow(s) can support and accomplish 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.

8. Provide workplace safety training and personal protective equipment, review of emergency procedures, and safety equipment as applicable to the Fellow’s service.

Provide an on-site first aid kit. Provide specialized training, support, and resources for high-risk safety duties (e.g., operating equipment) or hazardous conditions. It is strongly encouraged that Fellows serving with site-specific staff are trained in basic first aid and CPR. SSC will provide this training to Fellows during their orientation.

9. Adhere to Cal/OSHA’s heat illness prevention standards when duties and/or job worksites are outdoors.

10. Provide a site-specific email address to Fellows for communication throughout the term.

11. Must provide an average of 40 hours of project work each week throughout the program term that is focused on district climate action within the parameters of the site’s approved project. Administrative tasks are not allowed.

12. Familiarize Fellows with the host organization’s culture, resources, and project scope, including safety procedures and protocols.

13. Publicly display “AmeriCorps Member Serving Here” sign, provided physically and digitally by Program staff.

14. If Partner allows Fellows to drive vehicles owned/leased by the organization, Partner will assume liability for any auto accidents.

Expectations for Site Supervisors
Site Supervisors (SS) are the primary coaches and managers for SSC Fellows throughout the program. They guide, direct, and evaluate Fellows in all service projects and professional development, and are responsible for Fellows on a day-to-day basis.

Each SS should expect to spend an average of 4 hours per month per Fellow. With guidance from the team at BACR, each SS must commit to the following:

1. Complete a draft Scope of Work within 45 days and onboarding checklist before the Fellows’ term.

2. Meet weekly with Fellows, for at least one hour, to direct their service projects. This Fellowship is a professional development program and not a job. Many Fellows are new workforce entrants with limited professional experience. Site Supervisors are strongly encouraged and may be required to meet more frequently with their Fellows, depending on the needs of each individual. Site Supervisors are expected

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20 to play an active role in each Fellow’s professional development. They should expect to provide coaching throughout the term, in addition to the regular direction for service projects.

3. Complete monthly verbal reporting to BACR via Regional Supervisor check-in meetings, indicating whether progress is being made on the initiatives and how the Fellow(s) is integrating into the workplace and advancing their professional development goals.

4. Manage Fellows’ service hours and timesheets, including verifying on a bi-weekly basis, with support from SSC staff.

5. Provide time for Fellows to complete all program requirements, separate from their service projects. At a minimum, this will include 170 hours of training and professional development (10% of their SSC Fellowship term), including 3-6 hours of training provided by BACR staff each month, University of California Climate Stewards coursework (or equivalent) for a total of 40-50 hours of live classes and asynchronous coursework, and other professional development training. Monthly training provided by BACR is typically held on the second Friday of each month from 9:00 AM - 5:00 PM. Training and professional development hours provided by BACR and Partner site cannot exceed 340 hours or 20% of their term.

6. 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 professional development goals.

7. Attend all training, monthly meetings, and information sessions organized by SSC before and during the program term. At a minimum, this will include a 1-hour monthly check-in with SSC Fellows and SSC staff.

8. Commit to working with Fellows to complete their timecards by the 15th and 30th of each month and approve all Fellow timecards by the 16th and 1st of each month.

9. Seek opportunities to integrate Fellows’ professional goals into project activities.

10. As appropriate, facilitate Fellows’ transition at the end of their service term by introducing Fellows to relevant colleagues and networks.

11. If the Site Supervisor changes during the program term, outgoing SS will complete the transfer process provided by BACR with incoming SS.

Reporting and Collective Impact Responsibilities
Support BACR’s tracking and collection of project metrics by offering data on specific outcomes or greenhouse gas reduction targets;
In order to support success, realize the Fellowship’s desired collective impact, and assist with demonstrating California’s commitment to service, Partner shall:

1. Advance community climate goals by developing defined project scope(s) to be completed before the service term. Defined scopes shall:
a. Ensure service activities are consistent with the defined scope and aligned with Program goals.
b. Keep SSC staff apprised of project developments and/or challenges, redefine project scope(s) and goals as necessary, and specify Fellow roles in advancing projects.

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21 c. Identify climate action and education or outreach targets, tracking, and reporting methods.

2. Support broader storytelling and collective impact by a. Supporting any additional project reporting as requested by SSC staff. b. Allowing BACR to share all reporting results with California Volunteers for required grant reporting.
c. Sharing climate action activities and outcomes through social media and press as appropriate and tagging BACR, Sustainability Service Corps, and CV communications teams where relevant.

Key Officials
The individuals listed below are identified as key personnel considered essential to the project being performed under this Agreement.

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 (30) 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.

State of Emergency
California Volunteers, Office of the Governor (CV), may declare an emergency during the Agreement. During a state-declared emergency, CV reserves the right to redirect Fellow resources to support the state’s disaster response and recovery efforts.

If a service activity is disrupted due to an emergency, Partner must first redirect Fellows to help support state/local emergency needs identified by CV, unless such service opportunities are not available where the Fellow resides.

Fellow Recruitment and Early Hiring Termination Penalty

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22 1. If Partner fails to select a Fellow from the list of applicants deemed qualified by BACR, Partner will pay BACR a $2,500 fee. Penalty fee covers the cost of recruiting efforts by BACR and must be paid within 15 days of receipt of invoice.

2. The Parties will explore reasonable next steps for recruitment in the event that BACR is unable to place a qualified Fellow at Partner site by the final possible start date. Next steps include a shorter term of service, with corresponding lower payment amount of matching funds (dependent on availability), postponement to a future term of service, or whatever solution is deemed most beneficial to the Parties.

3. In the event that the Fellow(s) is placed 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.

4. Partner agrees not to hire the Fellow as a full-time employee until, and unless, the Fellow completes their entire term of service described in this Agreement. If the Partner hires the Fellow before the end of the program year, Partner is required to pay the entirety of the cost per Fellow, as outlined in Matching Funds Enclosure.

Partner will not be reimbursed for payments already made to BACR. If Partner hires the Fellow prior to the end of the term, Partner should be aware that BACR may choose to discontinue the partnership with Partner.

Other Requirements

1. Not displace Partner staff or volunteers through the use of Sustainability Service Corps Fellows, nor have Sustainability Service Corps Fellows perform any services or duties that would supplant the hiring of employed workers.

2. Not offer the Sustainability Service Corps Fellow part-time work that is substantially similar to their Fellowship scope of work, nor offer them full-time employment with a start date prior to the Service Term end date.

3. If challenges arise (related to professionalism, work performance, managing expectations, etc.), provide specific written feedback to the Fellow and share it with SSC staff in a timely manner. SSC staff can then assess the challenges and intervene as needed. Partners cannot issue warnings or terminate Fellow(s). BACR, as the implementing agency, must be involved in all performance-related conversations.

4. As applicable to project activities and SSC Fellow roles, Partner is required to follow local, state and/or federal health guidelines to ensure appropriate COVID-related training, resources, and safety measures for Fellows and to avoid placing them in unsafe conditions or asking them to conduct activities without appropriate safety management protocols in place.

IV. Reimbursable Expenses
Neither BACR, as employer of the Fellow(s), nor Partner, as the Host Agency, shall be obligated to cover any expenses related to the service.

V. Non-appropriation of Funds

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23 This Agreement is subject to the budget and fiscal policies, regulations and practices of the federal government, and approval and appropriation of funds for this Agreement. If funds are appropriated for only a portion of a fiscal year, this Agreement will terminate, without penalty, at the end of the period for which funds are appropriated. Partner’s assumption of risk of possible non-appropriation is part of the consideration for this Agreement.

VI. Mutual Indemnification
To the fullest extent permitted by law, each Party shall be solely responsible for any and all claims, demands, suits, liabilities, proceedings, actions, causes of action, losses, expenses, damages, fines, and penalties (collectively, “Claims”) to the extent arising out of the negligent acts, errors, omissions, or willful misconduct of that Party, its officers, directors, employees or agents in the performance of this Agreement.

Nothing in this Agreement shall be construed to obligate one Party to indemnify, defend, or hold harmless the other Party, its officers, employees, or agents, for any Claims arising from the other Party’s own acts, omissions, negligence or willful misconduct.

Where both Parties are public entities, the provisions of California Government Code sections 895-895.6 shall govern their respective responsibilities for Claims arising under this Agreement.

VIII. BACR Insurance Requirements
BACR shall procure and maintain for the duration of this Agreement the following insurance coverage at its own cost and expense:

Commercial General Liability (CGL) Insurance with coverage at least as broad as Insurance Services Office (ISO) CG 00 01 with limits not less than $2,000,000 per occurrence and $4,000,000 general aggregate. The City, its officers, officials, employees, and agents shall be named as additional insureds using ISO additional insured endorsement form CG 20 10 (or equivalent). The policy shall allow and be endorsed as primary and not seek contribution from the City’s coverage. Coverage shall provide and be endorsed to include a waiver of subrogation in favor of the City and its officers, officials, employees, and agents.

Automobile Liability Insurance covering owned, hired, and non-owned vehicles using ISO Business Auto Coverage form CA 00 01 (or equivalent), with limits not less than $1,000,000 each accident. The policy shall be endorsed naming City, its officers, officials, employees, and agents as additional insureds. Coverage shall provide and be endorsed to include a waiver of subrogation in favor of the City and its officers, officials, employees, and agents.

Workers’ Compensation Insurance as required by California law, including Employer’s Liability coverage with limits of not less than $1,000,000 each accident or disease. Coverage shall provide and be endorsed to include a waiver of subrogation in favor of the City and its officers, officials, employees, and agents.

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24 Certificates of Insurance (COI) and endorsements evidencing the above coverage shall be provided to the City prior to the commencement of any services under this Agreement and shall remain in effect throughout the term.

VIII. Correction and Termination

1. Either Party may terminate this Agreement upon thirty (30) calendar days’ written notice to the other Party, with or without cause.

2. If, in either Party’s reasonable discretion, the other Party has failed to meet the material requirements applicable to it under this Agreement, the non-breaching Party may deliver to the breaching Party a Letter of Corrective Action specifying (a) the deficiencies in performance, (b) the manner in which such deficiencies shall be corrected, and (c) a reasonable period of time in which to correct such deficiencies.

If the breaching Party has not demonstrated in writing to the reasonable satisfaction of the non-breaching Party, within the time period specified in the Letter of Corrective Action, that it has either (i) corrected the deficiencies specified in the Letter or (ii) if such correction cannot reasonably be accomplished within such time period, taken steps to correct such deficiencies as quickly as possible, the non-breaching Party shall have the right to terminate this Agreement immediately upon written notice.

3. In cases where deficiencies are severe and the non-breaching Party reasonably believes that urgent action is necessary, the non-breaching Party may terminate this Agreement immediately upon written notice, without use of a Letter of Corrective Action.

4. The terms of this section are cumulative to any other termination right set forth in this Agreement, including but not limited to the termination provision under Section VIV (Default) below.

IX. Default
This Agreement depends upon the continued availability of funds awarded by the funder.

If, for any reason, the funder fails to appropriate funds or the funds become unavailable, this Agreement will be terminated by BACR without further cause. Provided, however, BACR shall use best efforts to provide Partner with prompt written notice of any termination of this Agreement due to the unavailability of funds as described above.

Termination can be originated by either Party for cause with no less than thirty (30) days written notice of the decision to terminate. The 30-day notice may be waived in the event of extenuating circumstances that constitute grounds for immediate termination.

If this Agreement is terminated due to Default, the non-breaching Party may terminate all other Agreements with the breaching Party without further cause.

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25 Events of Default
● Failure to follow AmeriCorps Civil Rights and Non-Harassment Policy. ● Requiring Fellow(s) to perform unallowed activities.
● Failure to follow guidance on the use of BACR People and Culture department for Human Resource matters.
● Incoming Site Supervisor does not follow BACR Site Supervisor transition plan.

Please see Item 11 under Expectations for Site Supervisors. ● The Sustainability Service Corps program is terminated or otherwise ceases Operations.
● The Fellow(s) is unable to complete the service term as a direct result of program interruption or discontinuation that is outside the control of either Party.

X. Publicity and Acknowledgment(s)
Neither Party may publicize quotes, videos, pictures, and any other media associated with services performed under this Agreement, or depicting the other Party’s staff, volunteers, Fellows, or program participants and their families without the prior written consent of the other Party. Requests for such consent shall be submitted to the contact designated by each Party in Section III “Key Officials” above.

XI. Amendment
This Agreement may be amended through writing and upon signature by an authorized representative of each of the parties hereto.

XII. Entire Agreement
This Agreement, [and any exhibits attached hereto,] is the entire, final, complete, and fully integrated agreement between BACR and Partner with respect to the subject matter hereof and supersedes any prior or other agreements and communications between BACR and Partner, whether written, oral, electronic, or otherwise.

XIII. Governing Law; Jurisdiction and Venue; Non-Waiver This Agreement shall be governed by the laws of the State of California, as applied to contracts to be performed entirely within such State. For the purpose of any action or proceeding arising out of or relating to this Agreement, each Contractor and Subcontractor irrevocably submits to the exclusive jurisdiction of the state courts of California and to the jurisdiction of the United States District Court for the District of Northern California. Time is of the essence of this Agreement and of each and every provision hereof. The failure of either Party to exercise any of its rights under this Agreement shall not be deemed a waiver of such rights.

XIV. Assignment
This Agreement and each of the rights and duties hereunder may not be assigned, in whole or in part, by either Party, without the express written consent of the other Party,

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26 which consent may be withheld for any reason.

XV. Attorney’s Fees
In the event of any controversy, claim, or dispute between the Parties arising out of or related to this Agreement, or the alleged breach thereof, the prevailing Party shall be entitled, in addition to any other relief, to recover its reasonable attorneys’ fees and costs incurred in connection with such action. For purposes of this section, “prevailing Party” mean the Party that substantially obtains the relief sought, whether by settlement, judgment, or dismissal. This provision is intended to operate in a manner consistent with, and not to expand or limit, the Parties’ respective obligations under the mutual indemnification provisions of this Agreement.

XVI. Force Majeure
Neither Party shall be liable for the failure or delay in performance of its obligations under this Agreement if such delay or failure is caused by force majeure. “Force majeure” means an occurrence that is beyond the control of the Party affected and occurs without the Party’s fault or negligence. Force majeure may include, but is not limited to, acts of nature, acts of government (including, but not limited to, political subdivisions, school districts, or local education agencies that authorize and oversee School’s charter petition) not related to breach of any legal or regulatory obligation by either Party, fire, earthquake, strike, lockout, civil disorder, war or commandeering by any agency of government, epidemics, and quarantine restrictions. Partner and BACR shall work cooperatively to address any issues of force majeure that result in the inability to operate the SSC Fellowship.

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

XVIII. Term of the Agreement
The term of this Agreement shall commence on September 01, 2026, and end on August 31, 2027, unless sooner terminated in accordance with the terms hereof.

XVII. CONCLUSION
In Witness Whereof, the parties signify and approve their agreement:

Signatory:

DATED:

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27 {{TableStart:AuthorizingContact}}
{{CONTACT}}
{{CONTACT_TITLE}}
{{ACCOUNT_NAME}}
{{TableEnd:AuthorizingContact}}
Implementing Agency:

DATED:

Adolfo Rivera
Director, National Service Programs
Bay Area Community Resources

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28 MATCHING FUNDS
PARTNER will provide BACR with $32,000 per Fellow, also known as the “Host Agency Match.” PARTNER will receive an invoice one (1) month prior to the scheduled payment date of the matching funds. Timely payments of invoices are required. Failure to pay invoices will result in a re-evaluation of the partnership, and if payment cannot be resolved, the cancellation of Fellow placements at the Partner site.

Total amount in matching funds required is $32,000 (see calculation below) Total number of Fellows: 1
(1) x $32,000 = $32,000
PARTNER payment will be made according to the following schedule.

Payment # Due Date Amount
#1 November 30, 2026 $16,000.00 - (50%)
#2 January 31, 2027 $8,000.00 - (25%)
#3 March 31, 2027 $8,000.00 - (25%)
Matching payments are required by California Volunteers and are used throughout the year for AmeriCorps Member stipends, benefits, training, and programmatic costs.

Refund Procedure
In the event that the Fellow(s) leave the program for any reason aside from being offered employment by 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, 2027. All match funds will have been absorbed by the program by April 30, 2027, no refunds will be issued after that date.

Prorated amounts are determined by the following equation:

Total # of stipends received by Fellow divided by the total # of stipends for the term (22).

Multiply by $32,000 and then subtract the total amount of Partner match paid to date.

In some cases, the Partner may be asked to pay BACR additional matching funds to cover the stipends already awarded to Fellow that were not covered in the payment installments to date.

Signatory:

DATED:

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29 CONSENT CALENDAR 3.2

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Yajaira Morales, Interim Housing & Economic Development Manager Karen Camacho, Interim Community & Economic Development Director Shiri Klima, Assistant City Manager
SUBJECT: Execution of Amendment No. 2 to the Cooperation Agreement with San Mateo County for participation in the Urban County for Fiscal Years 2027, 2028 and 2029
Recommendation
Adopt a resolution:

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

Priority: Comprehensive Housing
Priority: Land Use, Economic and Workforce Development
30 CONSENT CALENDAR 3.2
Background
The four largest cities in the County, including Daly City, South San Francisco, San Mateo and Redwood City, have populations of over 50,000 and receive a direct allocation of Community Development Block Grant (CDBG) funds from U.S. Department of Housing and Urban Development (HUD). The smaller cities in the County are considered “non-entitlement” jurisdictions and do not receive a direct allocation of funding from HUD: Atherton, Belmont, Brisbane, Burlingame, Colma, East Palo Alto, Foster City, Half-Moon Bay, Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, San Bruno, San Carlos and Woodside. Instead, these smaller cities must participate in what HUD called an “Urban County” to access CDBG, HOME Investment Partnership Program (HOME) and Emergency Solutions Grant (ESG) Program funds.

The County of San Mateo (County) with participation of small, non-entitlement cities like East Palo Alto qualifies as an Urban County and therefore is an “entitlement jurisdiction.” The County is entitled to receive annual allocations of funding from HUD for CDBG, HOME, and ESG programs.

To maintain Urban County status, the County must requalify with HUD every three years and enter into a cooperation agreement with all non-entitlement cities, including East Palo Alto, to solicit their cooperation and co-participation in the Urban County housing and community development programs.

Analysis
The County has elected to amend the existing Cooperation Agreement (dated September 20, 2017, as previously amended in July 2023), by way of Amendment No. 2, with East Palo Alto and other non-entitlement jurisdictions, to ensure that all HUD requirements for the Urban County Cooperation Agreements are met. The Cooperation Agreement shall remain in effect for the three-year program period of Federal Fiscal Years 2027, 2028 and 2029, and until funds granted and program income received during the three-year program period are expended and the funded activities completed. Neither the County nor any city may terminate, withdraw, or be removed from the program during the three-year program period. The Agreement will renew automatically for participation in one successive three-year Urban County qualification period (Federal Fiscal Years 2030, 2031, and 2032), unless any city or the County provides written notice to the other party that it elects not to participate in a new qualification period. The terminating party shall send a copy of the notice of termination to the HUD field office by the date specified on the HUD Exchange Urban Counties website. The County will notify the relevant city in writing of its right to make this election. A copy of the County’s notification must be sent to the HUD field office by the date specified on the HUD Exchange Urban Counties website.

An unsigned copy of the Amendment No. 2 to the Cooperation Agreement (dated September 20, 2017, as previously amended in July 2023) is attached for informational purposes only. Upon approval of the County Board of Supervisors and the participating non-entitlement jurisdictions, 31 CONSENT CALENDAR 3.2
the Cooperation Agreement will be executed by all parties. The County’s deadline for jurisdiction to send signed agreements is July 15, 2026.

Approval of this action contributes to the City’s goals of supporting activities designed to help vulnerable residents secure and maintain affordable housing and access services that contribute to a sustainable quality of life.

Fiscal Impact
There is no direct cost to the General Fund and no fiscal impact associated with the execution of this Amendment itself, as the City pledges no City funds. Participation in the Urban County is, however, the sole means by which the City accesses CDBG, HOME, and ESG funding; declining or failing to execute the Amendment by the County’s July 15, 2026 deadline would forfeit the City’s eligibility for these federal funds for the FY2027–2029 qualification period. Funding amounts are determined annually by HUD formula allocation and pass through the County to the City. Staff time associated with administering funded activities is absorbed within existing budgeted resources.

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” within 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. In the alternative, the action is exempt under the “common sense” exemption (CEQA Guidelines section 15061(b)(3)) because it can be seen with certainty that there is no possibility the action may have a significant effect on the environment.

Any specific physical project subsequently funded with CDBG, HOME, or ESG funds will be subject to its own environmental review under CEQA and the National Environmental Policy Act (NEPA) at the time it is proposed. No Notice of Exemption is required for a determination that an action is not a project.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action involves an agreement between governmental entities.

Analysis of Levine Act Compliance: Not applicable.
32 CONSENT CALENDAR 3.2
Attachments

1. Resolution

2. Cooperative Agreement
33 Resolution No. XX-2026 1 of 2
RESOLUTION NO. XX– 2026

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE

COOPERATION AGREEMENT WITH SAN MATEO COUNTY FOR PARTICIPATION IN THE URBAN COUNTY FOR FISCAL YEARS 2027, 2028 AND 2029 AND ONE

SUBSEQUENT THREE-YEAR PERIOD THEREAFTER
WHEREAS, staff recommends authorizing a Cooperation Agreement with San Mateo County to secure and award federal funds through the process of Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and Emergency Solutions Grant (ESG) Program to eligible public entities;
WHEREAS, public entities that do not otherwise come within the definition of an eligible public agency may cooperate and participate with an eligible public entity such as urban county; and WHEREAS, the County of San Mateo has heretofore qualified as an urban county under the Act, the County again solicits the cooperation and co-participation of public entities such as City in its application for federal assistance under the Act for the Federal Fiscal Years 2027, 2028 and 2029 and subsequent three-year periods thereafter; and
WHEREAS, a Cooperation Agreement by and between City and County establishes the formal relationship to cooperate and co-participate and is specifically authorized under the provisions of Government Code Section 6502 and 26227; and
WHEREAS, City has previously, by an official act of pronouncement, expressed its intent and desire to cooperate and participate with County in its plan application and to engage in housing and community development activities within its incorporated limits thereunder; and WHEREAS, City understands that in becoming part of the Urban County, City automatically participates in the CDBG, HOME and ESG Programs, which provide eligible local jurisdictions with federal funds for affordable housing activities; and
WHEREAS, the City’s adoption of this Resolution and execution of the Amendment do not constitute agreement to comply with, or to certify compliance with, any term or condition that is unlawful or that has been enjoined, including the federal funding conditions enjoined in King County et al. v.

Turner et al., No. 2:25-cv-00814-BJR (W.D. Wash.), and the City reserves all rights and defenses with respect to any such term or condition.

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 Amendment No. 2 to the Cooperation Agreement (dated September 20, 2017, as previously amended in July 2023) with San Mateo County for 34 Resolution No. XX-2026 2 of 2
participation in the Urban County for fiscal years 2027, 2028, and 2029 and one subsequent three-year period thereafter; and

3. Declares that the City’s adoption of this Resolution and execution of the Amendment are subject to, and incorporate, the reservation of rights set forth in the recitals above, and authorizes the City Attorney to take such actions as may be necessary to preserve the City’s rights and defenses with respect to any unlawful or enjoined federal funding condition; and

4. Finds that the proposed action does not constitute a “project” within 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 7th day of July 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
35 County of San Mateo Cooperative Agreement Amendment
Cooperation Agreement dated September 20, 2017 Amendment Number: 2 (Second) Cooperation Agreement Amendment #1 dated July 2023
Agreement between the COUNTY OF SAN MATEO and the CITY OF EAST PALO ALTO

THE AGREEMENT IS CHANGED AS FOLLOWS
I. Witnesseth Section is hereby ☐ added ☒ amended as follows:

Adds the following emboldened, italicized phrase:

WHEREAS, the County of San Mateo has heretofore qualified as an urban county under the Act, the County again solicits the cooperation and co-participation of public entities such as the City in its application for federal assistance under the Act for Federal Fiscal Years 2027, 2028 and 2029 and one subsequent three-year period thereafter; and
II. Witnesseth Section is hereby ☐ added ☒ amended as follows:

Adds the following as a new Whereas provision:

WHEREAS, the City Executive of the City is authorized to execute this Amendment on the City’s behalf, and the County Executive is authorized to execute this Amendment on the County’s behalf.

III. Section 1 (Purpose) is hereby ☐ added ☒ amended as follows:

Replaces the first sentence with the following emboldened, italicized phrase:
“The County and City agree to cooperate to undertake, or assist in undertaking, essential community development and housing assistance activities in and for the benefit of the City, as approved or authorized between the parties in the CDBG Agreements, including the Consolidated Plan. This Agreement includes...” IV. Section 2 (Term), 1 is hereby ☐ added ☒ amended as follows:

Amends and restates the first paragraph in its entirety as follows:
“This Agreement shall remain in effect for the three-year program period of Federal Fiscal Years 2027, 2028 and 2029, and until funds granted and program income received during the three-year program period are expended and the funded activities completed. Neither the County nor the Municipality may terminate, withdraw, or be removed from the program during the three-year program period. The Agreement will renew automatically for participation in one successive three-year Urban County qualification period (Federal Fiscal Years 2030, 2031, and 2032), unless the Municipality or the County provide written notice to the other party that it elects not to participate in a new qualification period. The terminating party shall send a copy of the notice of termination to the HUD field office by the date specified on the HUD Exchange Urban Counties website. The County will notify the Municipality in writing of the Municipality’s right to make this election. A copy of the County’s notification must be sent to the HUD field office by the date specified on the HUD Exchange Urban Counties website.”
36 V. Section 3 (County’s Responsibilities as Applicant) is hereby ☐ added ☒ amended as follows:

Amends and restates Paragraphs 4 and 5 of Subsection a. in their entirety as follows:
“Therefore, the County and City agree to cooperate to undertake, or assist in undertaking, essential community development and housing assistance activities in and for the benefit of the City, as approved or authorized between the parties in the CDBG Agreements, including the Consolidated Plan. The County and City will also strictly adhere to the Consolidated Plan as approved and to all assurances and certifications provided to HUD, including taking all actions necessary to comply with the Urban County’s certifications under Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, that the grant will be conducted and administered in conformity with:
• Title VI of the Civil Rights Act of 1964, implementing regulations at 24 CFR Part 1; and • the Fair Housing Act, and implementing regulations at 24 CFR Part 100 and will comply with the obligation to affirmatively further fair housing; and
• Section 109 of Title I of the Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR Part 6, which incorporates: Section 504 of the Rehabilitation Act of 1973, and the • implementing regulations at 24 CFR Part 8; and
• Title II of the Americans with Disabilities Act of 1974, and the implementing regulations at 28 CFR Part 35; and
• the Age Discrimination Act of 1975, and the implementing regulations at 24 CFR Part 146; and • Section 3 of the Housing and Urban Development Act of 1968; and • Uniform Relocation and Real Property Policies Act of 1970 and the implementing regulations at 49 CFR Part 24; and
• Section 104(d) of the Housing and Community Development Act of 1974 and the implementing regulations at 24 CFR Part 42; and
• all other applicable laws and regulations.

The Parties acknowledge that the Urban County is a plaintiff in King County et al. v. Turner et al., 2:25-cv-00814- BJR (W.D. Wash.) and through this litigation has obtained a Preliminary Injunction against HUD. To the extent that this Agreement purports to impose terms or conditions that are enjoined pursuant to that Preliminary Injunction, the Urban County is not bound to those enjoined terms or conditions.

The Parties agree that Urban County funding in no event will be used for activities in, or in support of, any cooperating unit of general local government that impedes the County’s actions to comply with the County’s fair housing certification and duty to affirmatively further fair housing. This provision is required because noncompliance by a unit of general local government included in an urban county may constitute noncompliance by the grantee (i.e. the Urban County) that can, in turn, provide cause for funding sanctions or other remedial actions by the Department.”
VI. Section 3 (County’s Responsibilities as Applicant), is hereby ☐ added ☒ amended as follows:

Amends and restates Subsection c. in its entirety as follows:
“Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of CDBG funds to a Municipality, Urban County, unit of general local government, or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits, or nonFederal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended.”
37 VII. Section 5 is hereby ☐ added ☒ amended as follows:

Adds the following italicized and underlined language:

The City and County has each adopted and is enforcing:
a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civilrightsdemonstrations; b. A policy ofenforcing applicable State and local laws against physically barring entrance to or exitfrom a facility or location which isthe subject ofsuchnon-violent civil rights demonstrations within jurisdictions.

VIII. Section 8 (County’s Responsibility to City), is hereby ☒ added ☐ amended as follows:

Adds the following new Subsection d.:
“d. The Urban County agrees that the CDBG funds that the Municipality is entitled to will be utilized to benefit the Municipality.”
IX. Section 10 (Program Income) is hereby ☐ added ☒ amended as follows:

Amends and restates Subsection e. in its entirety as follows:
“e. The County and Municipality shall not terminate or withdraw from the Agreement while it remains in effect. The County may transfer the program income to the Municipality, upon its termination of Urban County participation, provided that the Municipality begins participating as an independent CDBG Entitlement grantee and agrees to use the program income in its own CDBG Entitlement program.” X. Section 13 (Minor Amendments to the Agreement) is hereby ☐ added ☒ amended as follows Amends and restates Section 13 in its entirety as follows:

13. Amendments to the Agreement.
“The Parties agree to adopt amendment(s) to this Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s), when applicable. Failure by either Party to adopt any such amendment, and to submit such amendment to HUD, will void the Agreement for such qualification period.” Other changes: None
I hereby certify that the requested changes are required per the United States Department of Housing and Urban Development.
________ June 4, 2026_____ Karen Coppock___________
Requestor Signature Date Requestor Name (please print)
County of San Mateo County of San Mateo
HCD Supervisor_____________
Requestor Title (please print)
38 This change is effective as of: July 1, 2027
ALL OTHER TERMS AND CONDITIONS OF THE AGREEMENT REMAIN UNCHANGED.

In witness of and in agreement with this Amendment’s terms, the Parties, by their duly authorized representatives, affix their respective signatures:

For City:
___________________________ ___________________ __________________________________ Signature Date Name (please print)
(City Manager)
For County:
____________________________ ____________________ _________ ______________________ Signature Date Name (please print)
(County Executive)
39 CONSENT CALENDAR 3.3

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Yajaira Morales, Interim Housing & Economic Development Manager Alex Waggoner, HEART Consultant
Jazmin Gonzalez, Partnership for the Bay’s Future Fellow Karen Camacho, Interim Community & Economic Development Manager Shiri Klima, Assistant City Manager
SUBJECT: Authorizing City Manager to Administer Affordable Housing Preservation Program Recommendation
Adopt a resolution:
1) Directing the City Manager, or designee, to adopt the Affordable Housing Preservation guidelines to administer the City’s Affordable Housing Preservation Program and update the guidelines at the City Manager’s or designee’s discretion, provided that it is consistent with the resolution and its purpose; and
2) Authorizing the City Manager, or designee, to issue a Notice of Funding Availability (NOFA) in the amount of $2,099,044 and disperse the funds according to the guidelines and the allocations in the FY 2026-2027 budget; and
3) Finding that the proposed is exempt from the California Environmental Quality Act (CEQA) as it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
40 CONSENT CALENDAR 3.3
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Comprehensive Housing
Background
The Affordable Housing Preservation Program (“Program”) is designed to purchase, and deed restrict existing properties as units affordable to low-income families. These could be multi-family buildings, single-family homes, or properties with existing affordability restrictions that are close to expiration. Funds allocated to this program could be combined with other funding sources, such as State or federal funds, to expand the number of projects supported by the Program.

Affordable housing preservation has become a popular supplement to the production of affordable housing, as it can more quickly and cheaply create deed-restricted affordable units.

The City of East Palo Alto is well-positioned to utilize affordable housing preservation as another tool to protect residents against rising rent and home prices and displacement.

The recommendation to establish an Affordable Housing Preservation Program is rooted in three existing City policy documents:

1. The 2024-2028 Affordable Housing Strategy (adopted February 6, 2024), which prioritizes affordable housing preservation as a core objective.

2. The 2023-2031 Housing Element (adopted March 19, 2024; certified April 29, 2024), which identifies preservation as a tool to meet the City’s Regional Housing Needs Allocation (RHNA) and maintain affordability.

3. The Fiscal Year 2025-2029 Strategic Priorities includes a Comprehensive Housing strategic priority to increase the City’s housing stock at all income levels (from affordable to market rate), facilitate pathways to homeownership, and prevent displacement of existing residents.

Analysis
The City’s Affordable Housing Preservation Program is designed to prevent the loss of low-cost housing stock by providing financial assistance to affordable housing developers, community land trusts, and mission-driven nonprofits that can acquire and preserve both currently unsubsidized market-rate housing that serves low-income residents and subsidized housing at risk of losing affordability restrictions.
41 CONSENT CALENDAR 3.3
The program will offer flexible, accessible subsidies through a streamlined, over-the-counter process, allowing applicants to move quickly in competitive markets. Preservation strategies include: converting market-rate housing to income-restricted housing; extending expiring affordability restrictions on existing subsidized housing; and enabling homeowners at risk of foreclosure to retain their homes or purchase market-rate homes and convert them to Below Market Rate units to support low-income homeownership.

This preservation-based approach is aimed at helping the City reduce displacement and retain affordable housing opportunities in East Palo Alto, especially for low-income and vulnerable populations.

Policy Guidance for Affordable Housing Preservation Program City Council set policy and funding goals in the 2024-2028 Affordable Housing Strategy that are summarized below:

Table 1. Housing Programs and Funding Sources
Housing Element
Policy/Program
5 Year Funding
Amount
Expected
Outcomes
Funding
Sources
 Policy 2.3: Support
tenant or community
purchase of
properties.
 Policy 4.3: Develop a
preservation strategy
 Policy 4.6: Create and
fund a City housing
rehab program for
preservation.
$2,157,000 goal
($2,099,044
allocated)
Assist
acquisition
and income
restriction of
2 single
family
homes and
1 multifamily home
 Housing InLieu Fund;
 County of
San Mateo’s
Equity
Innovation
Fund (EIF)
(new as of
2025)
In further alignment with these policies, the City Council directed staff at the March 21, 2023, City Council meeting to pursue external funding and to continue advancing preservation work in anticipation of launching a formal program.

City Efforts to Date
The City has already laid substantial groundwork to implement the program. The City successfully applied to the third round of the Partnership for the Bay’s Future Program and was paired with a fellow to carry forward the Affordable Housing Preservation Program in January 2025. In early 2024, the City secured a grant from the County of San Mateo’s Equity Innovation Fund (EIF) to support development of program guidelines and a Notice of Funding Availability (NOFA).
42 CONSENT CALENDAR 3.3
On April 23, 2024, the City issued an RFP and subsequently entered into a contract with Anjanette Scott, LLC on May 21, 2024, to develop the program framework. Through summer and fall 2024, the consultant conducted research on similar programs and drafted the Preservation Program Guidelines and NOFA. The City hosted two key engagement events:
 December 12, 2024: A stakeholder forum with 11 housing organizations (in partnership with HEART).
 April 9, 2025: A community meeting with more than 50 residents (in partnership with the Partnership for the Bay’s Future Fellow).

On May 6, 2025, City Council appropriated $2,050,000 from the Housing In-Lieu Fund (Fund 207) via Resolution No. 36-2025 to the Affordable Housing Preservation Fund. In June 2025, the County issued the City with a $49,043.52 check in seed funding for the City’s Affordable Housing Preservation Fund. The EIF grant was intended to conclude in June 2025; however, the County provided a five-year extension to allow the City to expend the seed funding.

City staff gathered input from developers and members of the public. During the December 12, 2024, developer’s forum, Enterprise, BAHFA, BRIDGE, Alta Housing, Abode, LISC, Onyx Equity Partners, and MidPen Housing provided feedback on the guidelines.

On April 9, 2025, City Staff, in conjunction with HEART and the PBF Fellow, hosted a Preservation Funding Community Input Meeting at the YMCA in East Palo Alto. At this meeting, staff presented on the Affordable Housing Preservation Program, gave an overview of the specific program guidelines, and held small group discussions with staff and members of the public. Mayor Lincoln attended the meeting.

Based on those conversations and outreach events, City staff and HEART incorporated community and stakeholder feedback into the evaluation criteria of the draft guidelines. Key highlights include:
 Create and enforce standards for conditions and quality of housing preserved through the Affordable Housing Preservation Program
 Ensure that there are relocation payments for renovations necessary to preservation  Enforce relocation policy, local preference policy, and first right of return  Allow for co-operative ownership of housing as an option for preservation properties  Ensure that nonprofits are local to the area, have an understanding of the East Palo Alto community, and are in control of the properties
 Allow for funds to be used by existing homeowners to prevent foreclosure Next Steps
If the City Council approves the Guidelines and reallocation of funds, staff will finalize and publish the program Guidelines and NOFA; and launch the Affordable Housing Preservation Program.

This action would further East Palo Alto’s leadership in equitable housing solutions and affirm the City’s commitment to protecting vulnerable households from displacement through various 43 CONSENT CALENDAR 3.3
anti-displacement housing strategies.

Fiscal Impact
A total of $2,099,043.52 for the Affordable Housing Preservation Program is included in the Fiscal Year 2026-27 Housing Budget. This amount consists of $2,050,000 previously appropriated from the Housing In-Lieu Fund (Fund 207) through Resolution No. 36-2025 and $49,043.52 in seed funding received from the County of San Mateo’s Equity Innovation Fund.

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

Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) as it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

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

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Resolution
44 RESOLUTION NO. _____-2026

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
AUTHORIZING THE CITY MANAGER TO ADOPT GUIDELINES AND ADMINISTER THE CITY’S

AFFORDABLE HOUSING PRESERVATION PROGRAM AND AUTHORIZING THE CITY

MANAGER, OR DESIGNEE, TO ISSUE A NOTICE OF FUNDING AVAILABILITY (NOFA) IN THE AMOUNT OF $2,099,044 AND DISPERSE THE FUNDS ACCORDING TO THE GUIDELINES WHEREAS, the 2024-2028 Affordable Housing Strategy, adopted on February 6, 2024, has, among its goals, sought to establish a program to preserve affordable housing through the deed restriction of housing and the preservation of existing deed-restricted housing; and WHEREAS, the 2023-2031 Housing Element, adopted on March 19, 2024, has three policies related to preserving affordable housing, namely: Policy 2.3: Support tenant or community purchase of properties; Policy 4.3: Develop a preservation strategy; and Policy 4.6: Create and fund a City housing rehab program for preservation; and
WHEREAS, with the help of an Equity Innovation Fund (EIF) grant from the County of San Mateo, available through June 30, 2025, guidelines for an Affordable Housing Preservation Program have been drafted; and
WHEREAS, on May 6, 2025, via Resolution No. 36-2025, City Council appropriated Two Million Fifty Thousand Dollars ($2,050,000) from the Housing In-Lieu Fund (Fund 207) to an Affordable Housing Preservation Program; and
WHEREAS, in June 2025, the County provided $49,043.52 in seed funding toward the City’s Affordable Housing Preservation Program through the Equity Innovation Fund grant contingent on the City’s own allocation of funds toward such a program; and WHEREAS, the EIF grant was intended to conclude in June 2025; however, the County provided a five-year extension to allow the City to expend the seed funding; and WHEREAS, on June 23, 2026, the City Council reallocated a total of $2,099,044 toward the Affordable Housing Preservation Fund in the Fiscal Year 2026-2027 budget; and WHEREAS, the Affordable Housing Preservation Program’s primary objectives are to: serve vulnerable populations at-risk of displacement; provide opportunities for resident-controlled housing through community land trusts, cooperatives, and/or homeownership; help non-profits and tenants buy market-rate properties and deed-restrict them; and preserve properties occupied with low-income households; and
WHEREAS, the types of rental projects that may be funded by the Affordable Housing Preservation Program include, but are not limited to the purchase of unrestricted rental properties (including single-family homes) where all or some of the units will be income restricted; and/or extending the affordability term of deed-restricted rental property; and WHEREAS, the types of homeownership opportunity projects that may be funded by the Affordable Housing Preservation Program include, but are not limited to: the purchase of an unrestricted rental building, where the building is converted to cooperative or condominium ownership units; and/or 45 the purchase of an unrestricted single-family home that is then income restricted and resold at an affordable price, to an income-eligible homebuyer; and/or protecting an existing homeowner from displacement resulting in long term affordability; and
WHEREAS, the types of resident-controlled housing opportunities that may be funded by the Affordable Housing Preservation Program include, but are not limited to: assisting tenants of a property to organize and work with a non-profit partner to form a limited equity cooperative or similar resident ownership structure where the tenants collectively own and manage the building or property instead of owning the individual units; purchasing an unrestricted property and placing it in a community land trust; and/or creation of an homeowners’ association or condominium where all units are or will be income restricted and owner occupied.

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. Directs the City Manager, or designee, to adopt the Affordable Housing Preservation Guidelines to administer the City’s Affordable Housing Preservation Program and update the Guidelines at the City Manager’s or designee’s discretion, provided that the Guidelines are consistent with the resolution and its purpose;

3. Authorize the City Manager, or designee, to issue a Notice of Funding Availability (NOFA) in the amount of $2,099,044 and disperse the funds according to the guidelines and the allocations in the Fiscal Year 2026-2027 budget; and

4. 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 7th day of July 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

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

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 07, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
Jessica Y Caballero, Financial Services Manager
Esther Aguirre, Senior Accountant
SUBJECT: Monthly Cash Treasury Report for April 2026
Recommendation
Accept and file the Cash Treasury Report for the month of April 2026.

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

Priority: Governance, Organizational Strength, and Fiscal Sustainability Background
Pursuant to Section 53646 of the Government Code of the State of California, the City Treasurer may submit a quarterly report to the City Council regarding the funds and investments of the City. Further, City Investment Policy Section XVIII requires monthly reporting of investment transactions, as specified. Because the City participates in State and County investments pools and does not independently broker or engage outside investment advisors to transact investments, the monthly reporting provides a snapshot of overall cash receipts, transfers, and disbursements.

Analysis
The Monthly Cash Treasury Report (“Report”) covers cash and investments of the City in the four cash and investment accounts: Wells Fargo Bank, San Mateo County Pool, California State Local Agency Investment Fund, and the California Asset Management Program (CAMP). The 47 CONSENT ITEM 3.4
Report does not include petty cash, or the California State Community Infrastructure Program (SCIP) bond proceeds held by a trustee in the name of the City. For investment purposes, City cash is pooled, except for bond proceeds held by a trustee. The City does not have, nor is it legally required to have, separate bank accounts for each individual fund. However, all cash is segregated in the City’s accounting records. Monthly cash transactions for the monthly period ending April 30, 2026, are as follows:

The Wells Fargo cash balance reflects the book value balance (i.e., total outstanding checks not cashed are deducted from the account balance). The month-to-date cash and investment balance increased by approximately $6.8M compared to the balance as of March 31, 2026.

April receipts totaled approximately $12.5M, consisting primarily of Current Secured Property Tax ($6.9M), grant reimbursement from the San Mateo County Transportation Authority (SMCTA) for the University Avenue/101 Project ($2.6M), HDL ($0.9M), other tax distributions ($0.4M), Transient Occupancy Tax from the Four Seasons Hotel ($0.3M), PG&E franchise fee and surcharge ($0.3M), Veolia payments ($0.2M), and other various receipts.

April disbursements totaled approximately $6.7M, consisting primarily of CalPERS unfunded liability employer contributions ($3.0M), payroll costs ($1.2M), the fourth-quarter operations and maintenance (O&M) payment for the Regional Water Quality Control Plant (RWQCP) and Sludge Dewatering Facility State Revolving Fund (SRF) loan repayment to City of Palo Alto ($0.6M), CWS Construction for City facility improvements at Tate and the Police Department ($0.6M) and other recurring operating expenditures.

The table below reflects recent treasury yield comparisons up to five-year notes since that is the maximum maturity the City may invest1:

Local Agency Investment Fund (LAIF) average monthly effective yields were 3.81% in April 2026 compared to 3.83% in March 2026. San Mateo County monthly gross earnings for April 2026 were 4.14% compared to 4.03% in March 2026. The estimated County Pool earnings for FY 25- 26 are 3.75%. As of April 2026, the current annualized yield for California Asset Management Program (CAMP) is 3.78% compared to 3.80% in March 2026.

1 Daily US Treasury Yield Curve. Treasury.gov
Account Beginning
Balance Receipts Disbursements Interest Allocation Inter-Account Transfers Ending Balance Wells Fargo Bank 1,792,207.82 5,388,206.46 (6,721,418.45) 3,000,000.00 3,458,995.83 LAIF 24,260,807.61 - - 228,743.77 - 24,489,551.38
San Mateo County Pool 53,341,488.20 7,069,740.23 - 534,460.56 - 60,945,688.99 CAMP 103,059,950.72 - - 315,797.15 (3,000,000.00) 100,375,747.87 Total 182,454,454.35 12,457,946.69 (6,721,418.45) 1,079,001.48 - 189,269,984.07 Apr-26 Mar-26 Apr-25
6-Month Treasury Bill 3.58 3.60 4.04
2-Year Treasury Note 3.88 3.79 3.60
5-Year Treasury Note 4.02 3.92 3.72
48 CONSENT ITEM 3.4
Staff believes the City has investment liquidity and anticipated revenues to meet the City’s anticipated expenditure requirements for the ensuing six months. The following table shows a breakdown of cash and investment balance by fund type.

The deposit market value totals $190,415,905 including an unrealized gain2 of $472,647, reflecting treasury yields during the calendar year. All except for the General Fund balance is restricted by either City Council or external parties for specific purposes. Unrestricted cash and investment balance under General Fund ($48,506,552) may be used at Council discretion.

Fiscal Impact
There is no fiscal impact for this item. This report is informational.

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

Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

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

Analysis of Levine Act Compliance: Not applicable.

2 Investment Fair Market Value (FMV) factor is provided on a quarterly basis. Thus, as of March 31, 2026, FMV factor is used to calculate Unrealized Gain/(Loss) on Investments.

Deposit Value Market Value
General Fund (Inc. Petty cash of $10,800) $ 48,506,552 $ 48,506,552 General Sub-Funds (Commited/Restricted) $ 18,500,718 $ 18,500,718 City Funds Restricted and Committed $ 121,275,105 $ 121,275,105 Successor Agency Trust $ 1,723,265 $ 1,723,265
Unrealized Gain/(Loss) on Investment Pools $ - $ 410,264 $ 190,005,640 $ 190,415,905
Summary April 30, 2026
49 CONSENT ITEM 3.5

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 07, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
Jessica Y Caballero, Financial Services Manager
Esther Aguirre, Senior Accountant
SUBJECT: Monthly Cash Treasury Report for May 2026
Recommendation
Accept and file the Cash Treasury Report for the month of May 2026.

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

Analysis
The Monthly Cash Treasury Report (“Report”) covers cash and investments of the City in the four cash and investment accounts: Wells Fargo Bank, San Mateo County Pool, California State Local Agency Investment Fund, and the California Asset Management Program (CAMP). The 50 CONSENT ITEM 3.5
Report does not include petty cash, or the California State Community Infrastructure Program (SCIP) bond proceeds held by a trustee in the name of the City. For investment purposes, City cash is pooled, except for bond proceeds held by a trustee. The City does not have, nor is it legally required to have, separate bank accounts for each individual fund. However, all cash is segregated in the City’s accounting records. Monthly cash transactions for the monthly period ending May 31, 2026, are as follows:

The Wells Fargo cash balance reflects the book value balance (i.e., total outstanding checks not cashed are deducted from the account balance). The month-to-date cash and investment balance decreased by approximately $0.5M compared to the balance as of April 30, 2026.

May receipts totaled approximately $4.2M, consisting primarily of Current Secured Property TaxClean-Up Apportionment ($1.6M), AB26 distribution ROPS 26-27A ($0.7M), other tax distributions ($0.4M), Veolia payments ($0.3M), Transient Occupancy Tax from the Four Seasons Hotel ($0.2M) and other various receipts.

May disbursements totaled approximately $5M, consisting primarily payroll costs for three pay periods ($1.7M), the third-quarter payment to Recology for refuse collection and recycling services ($0.9M), May and June medical contribution to Kaiser ($0.3M), West Bay Sanitary District for March and April maintenance services ($0.3M), County of San Mateo for the Minor Home Repairs Program ($0.1M), January to April street sweeping services ($0.1M) and other recurring operating expenditures.

The table below reflects recent treasury yield comparisons up to five-year notes since that is the maximum maturity the City may invest1:

Local Agency Investment Fund (LAIF) average monthly effective yields were 3.81% in May 2026 which remained the same from April 2026. San Mateo County monthly gross earnings for May 2026 were 4.01% compared to 4.14% in April 2026. The estimated County Pool earnings for FY 25-26 are 3.75%. As of May 2026, the current annualized yield for California Asset Management Program (CAMP) is 3.76% compared to 3.78% in April 2026.

Staff believes the City has investment liquidity and anticipated revenues to meet the City’s

1 Daily US Treasury Yield Curve. Treasury.gov
Account Beginning
Balance Receipts Disbursements Interest Allocation Inter-Account Transfers Ending Balance Wells Fargo Bank 3,458,995.83 1,869,488.85 (4,991,317.51) 6,800,000.00 7,137,167.17 LAIF 24,489,551.38 - - - - 24,489,551.38
San Mateo County Pool 60,945,688.99 2,355,183.64 - - - 63,300,872.63 CAMP 100,375,747.87 - - 314,763.86 (6,800,000.00) 93,890,511.73 Total 189,269,984.07 4,224,672.49 (4,991,317.51) 314,763.86 - 188,818,102.91 May-26 Apr-26 May-25
6-Month Treasury Bill 3.63 3.58 4.17
2-Year Treasury Note 3.98 3.88 3.89
5-Year Treasury Note 4.13 4.02 3.96
51 CONSENT ITEM 3.5
anticipated expenditure requirements for the ensuing six months. The following table shows a breakdown of cash and investment balance by fund type.

The deposit market value totals $190,337,682 including an unrealized gain2 of $410,264, reflecting treasury yields during the calendar year. All except for the General Fund balance is restricted by either City Council or external parties for specific purposes. Unrestricted cash and investment balance under General Fund ($48,324,300) may be used at Council discretion.

Fiscal Impact
There is no fiscal impact for this item. This report is informational.

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

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

Analysis of Levine Act Compliance: Not applicable.

2 Investment Fair Market Value (FMV) factor is provided on a quarterly basis. Thus, as of March 31, 2026, FMV factor is used to calculate Unrealized Gain/(Loss) on Investments.

Deposit Value Market Value
General Fund (Inc. Petty cash of $10,800) $ 48,324,300 $ 48,324,300 General Sub-Funds (Commited/Restricted) $ 18,570,203 $ 18,570,203 City Funds Restricted and Committed $ 121,312,304 $ 121,312,304 Successor Agency Trust $ 1,720,610 $ 1,720,610
Unrealized Gain/(Loss) on Investment Pools $ - $ 410,264 $ 189,927,418 $ 190,337,682
Summary May 31, 2026
52 CONSENT ITEM 3.6

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Independence Day Proclamation
Recommendation
Present the Independence Day Proclamation.

Attachments

1. Proclamation
53 CITY OF EAST PALO ALTO

INDEPENDENCE DAY PROCLAMATION
WHEREAS, on July 4, 1776, the Continental Congress adopted the Declaration of Independence, establishing the United States of America as a free and sovereign nation founded on the principles of liberty, equality, and self governance; and WHEREAS, Independence Day stands as one of our nation's most cherished civic holidays, inviting all Americans to reflect on the ideals of freedom and democracy that continue to guide our country, and to recognize the ongoing work of building a more just and inclusive society for all; and
WHEREAS, the City of East Palo Alto is home to a vibrant and diverse community whose residents, regardless of background or origin, share in the values of liberty and opportunity that this day represents, and the observance of Independence Day brings residents together through community gatherings, public celebrations, and family traditions that strengthen civic pride; and WHEREAS, the City of East Palo Alto honors the men and women, past and present, who have served and continue to serve this nation, and recognizes that the freedoms celebrated on this day were secured through their sacrifice; and
WHEREAS, the City Council of East Palo Alto joins residents, businesses, and community organizations in celebrating this important occasion and encourages all community members to celebrate safely and to reflect on the responsibilities that come with the freedoms we share; NOW, THEREFORE, I, Webster Lincoln, Mayor of the City of East Palo Alto, on behalf of the City Council, do hereby call upon all residents to join in commemorating this day with appropriate community activities and observances.

Date: July 7, 2026

Webster Lincoln, Mayor
54 CONSENT ITEM 3.7

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: City Council Meeting Minutes
Recommendation
Adopt the June 23, 2026, City Council Meeting Minutes.

Attachments

1. June 23, 2026, Minutes
55 EAST PALO ALTO CITY COUNCIL

SPECIAL MEETING MINUTES
Tuesday, June 23, 2026, 6:30 PM
EPA Government Center
2415 University Avenue, First Floor
East Palo Alto, CA 94303

1. CALL TO ORDER AND ROLL CALL
Mayor Lincoln called the East Palo Alto City Council Special Meeting to order at 6:35 PM. City Clerk James Colin confirmed a quorum was present.

Attendee Name Title Status Arrived
Webster Lincoln Mayor Present
Ruben Abrica Vice Mayor Absent
Carlos Romero Councilmember Absent
Mark Dinan Councilmember Present
Martha Barragan Councilmember Present

2. APPROVAL OF THE AGENDA
Motion: Councilmember Dinan moved, Councilmember Barragan seconded, to approve the agenda. Motion carried unanimously.

3. PUBLIC COMMENT
The following speakers provided public comments: Gail Dixon, Ayesha Raymond, Tiffany Hautau, Centro, and Ethan Avina.

4. ADJOURN CITY COUNCIL SPECIAL MEETING AND RECONVENE TO THE JOINT

SUCCESSOR AGENCY SPECIAL BOARD MEETING
Mayor Lincoln adjourned the City Council Special Meeting and reconvened the Joint Successor Agency Special Board Meeting.

5. JOINT SUCCESSOR AGENCY BOARD PUBLIC HEARING

5.1 Adoption of FY 2026-27 Successor Agency Budget
Finance Director Tomo Oku presented the Fiscal Year 2026-27 Successor Agency Budget.

No public comments were received.

Motion: Councilmember Dinan moved, Councilmember Barragan seconded, to adopt a resolution approving the FY 2026-27 Successor Agency Budget. Motion carried unanimously.

6. ADJOURN JOINT SUCCESSOR AGENCY BOARD SPECIAL MEETING TO THE

EAST PALO ALTO SPECIAL MEETING
The Joint Successor Agency Board Special Meeting was adjourned, and the East Palo Alto City Council Special Meeting was reconvened.
56 7. PUBLIC HEARINGS

7.1 Adoption of the Fiscal Year 2026-27 Budget, Fiscal Years 2026-27 and 2027-28 Capital Improvement Program (CIP), and Fiscal Year 2026-27 Capital Budget Finance Director Tomo Oku presented the budget.

The following speakers provided public comments:
 Berenice Nunez
 Priscilla Prasad
 Jose Sanchez
 Gail Dixon
 Mario
 Nadine Rambu
 Alicia Gutierrez
Following Council discussion, the following budget modifications were approved:
 $175,000 for YMCA weekend wellness and youth programming.  $100,000 for EPA CENTER arts and cultural programming.  Increase city-sponsored event funding from $24,000 to $60,000 and add Mama Dee Day as a fifth city-sponsored event.
 Maintain Council training and travel budget at the prior year level.  Add up to $5,000 for official Council member clothing bearing the City seal.

Motion: Councilmember Dinan moved, Councilmember Barragan seconded, to adopt resolutions approving the FY 2026-27 Budget and the FY 2026-27 and 2027-28 Capital Improvement Program, as amended. Motion carried unanimously.

7.2 Establishing the Fiscal Year 2026-27 Appropriation Limit Finance Director Oku presented the FY 2026-27 Appropriation Limit.

No public comments were received.

Motion: Councilmember Barragan moved, Councilmember Dinan seconded, to adopt a resolution establishing the FY 2026-27 Appropriation Limit of $45,312,635. Motion carried unanimously.

5. CLOSED SESSION

6.1 Conference with Legal Counsel — Existing Litigation (Government Code Section 54956.9(d).) County of San Mateo, et al. v. State of California, et al., San Francisco Superior Court Case No. CPF-25-519270
The Council convened in closed session. Upon returning to open session, Mayor Lincoln reported no reportable action.

6. ADJOURNMENT
Mayor Lincoln adjourned the meeting at 9:51 PM.
57 CONSENT ITEM 3.8

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: City Anniversary Proclamation
Recommendation
Present the City Anniversary Proclamation.

Attachments

1. Proclamation
58 PROCLAMATION OF THE CITY OF EAST PALO ALTO CELEBRATING THE 43rd ANNIVERSARY OF THE CITY OF EAST PALO ALTO
WHEREAS, East Palo Alto is proudly celebrating the 43rd anniversary of its incorporation as a city in San Mateo County, a milestone that reflects the enduring determination and vision of the community that fought to govern itself; and WHEREAS, East Palo Alto is a vibrant and resilient community of approximately 30,000 residents beautifully situated between the shores of the San Francisco Bay and the neighboring communities to the west, offering a unique blend of natural beauty, cultural richness, and geographic distinction within the heart of the San Francisco Peninsula; and WHEREAS, East Palo Alto is a community where the legacy and love of its original city mothers and fathers are celebrated and honored to this day, among them Mayor Barbara Moulton, its current Councilmember Ruben Abrica, former Mayor James Blakey, Jr., F.J. "Omowale" Satterwhite, and Gertrude Wilkes, whose courage, sacrifice, and civic commitment laid the foundation upon which the City continues to grow and thrive; and WHEREAS, the City of East Palo Alto was incorporated through the extraordinary grassroots efforts of residents who believed deeply in the power of self-determination, and whose activism and perseverance secured for this community the right to shape its own destiny and direct its own future; and WHEREAS, in the 43 years since incorporation, East Palo Alto has demonstrated remarkable growth and resilience, expanding its tax base, achieving dramatic improvements in public safety, and investing in the infrastructure and institutions that define a thriving city, including the new EPACenter, the re-opened Senior Center, the Historical Archive, and a jobs center designed to connect residents with the opportunities presented by the high-technology economy flourishing within and around the City's borders; and
WHEREAS, East Palo Alto has continued to invest in the natural environment and recreational quality of life for its residents through the development of new parks at Cooley Landing, expanded access to the Bay Trail, and ongoing planning efforts aimed at preserving and enhancing the City's unique ecological assets along the San Francisco Bay; and WHEREAS, East Palo Alto remains committed to equitable development, ensuring that the benefits of regional prosperity are accessible to all residents regardless of background or income, and that the City's growth continues to reflect the values of inclusion, dignity, and opportunity that inspired its founding; and WHEREAS, East Palo Alto is a community overflowing with civic pride, cultural diversity, and community involvement, and looks toward the next 43 years and beyond with optimism, unity, and an unwavering commitment to becoming an even stronger, more prosperous, and more connected city for all who call it home.

NOW THEREFORE, BE IT RESOLVED THAT the City Council of East Palo Alto hereby recognizes the City's remarkable achievements over 43 years of incorporation, honors the memory and service of its founding leaders, reaffirms its commitment to ongoing civic duty and equitable progress, and joyfully celebrates this milestone anniversary on behalf of all East Palo Alto residents, past, present, and future.

Dated: July 7, 2026
Webster Lincoln, Mayor
59 POLICY AND ACTION 8.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Yajaira Morales, Interim Housing & Economic Development Manager Karen Camacho, Interim Community & Economic Development Director Shiri Klima, Assistant City Manager
SUBJECT: Measure HH Workforce Development Program Request for Proposals Recommendation

1. Receive report on draft Request for Proposals for the City’s Measure HH Workforce Development Program;

2. Provide input on the recommended enhancements to the Measure HH Workforce Development Program and on how staff should measure the success of the eventual consultants; and

3. Adopt a resolution:
a. Directing the City Manager to issue a request for proposals (“RFP”) to continue the Measure HH Workforce Development Program in an amount not-to-exceed of $1.1 million, with recommended program, policy and operational enhancements; and b. Finding that the proposed action does not constitute a “project” within 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.
60 POLICY AND ACTION 8.1
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Land Use, Economic and Workforce Development
Background
Program Initiation – Pilot Workforce Development Program Measure HH is a parcel tax approved by East Palo Alto voters in 2018 to address two critical community needs: affordable housing and local workforce development opportunities. Measure HH revenues are restricted to three purposes: (1) affordable and supportive housing (minimum 35 percent of revenues), (2) workforce development programs focused on STEM and building trades careers, and (3) administration (maximum 15 percent of revenues).

To expand access for East Palo Alto residents to high-quality, living-wage employment opportunities, the City Council allocated $775,215 in November 2022 to launch the Measure HH Pilot Workforce Development Program (“Pilot Program”). Following a competitive RFP process, the City Council approved agreements with three community-based workforce development organizations (JobTrain, Live In Peace, and StreetCode Academy) to implement the Pilot Program. These organizations were selected based on their strong community connections and demonstrated success in providing workforce training and job placement services, particularly for underrepresented groups.

The Pilot Program commenced in March 2023 with an initial 18-month pilot period. On September 3, 2024, the City Council extended the pilot period through May 31, 2025, and allocated an additional $366,418 to support continued programming. Subsequently, on June 17, 2025, the City Council further extended the pilot period through December 31, 2025, to allow participating organizations to complete expenditures and facilitate extended participant tracking and outcome monitoring.

Table 1. Measure HH Pilot Workforce Development Program Allocations Pilot
Phase I
Allocation
Pilot Phase I
Targeted
EPA
Participants
Pilot
Phase II
Allocation
Pilot Phase II
Targeted
EPA
Participants
Total
Allocation
(2022-
2025)
Live In Peace $300,030 20 $137,267 10 $437,297
JobTrain
(Building Trades) $135,803 20 $59,813 10 $195,616
JobTrain (STEM) $102,682 20 $50,988 10 $153,670
StreetCode
Academy $236,700 20 $118,350 10 $355,050
Total $775,215 80 $366,418 40 $1,141,633
61 POLICY AND ACTION 8.1
The City Council established the following performance targets for the Pilot Program:
 85 percent course completion rate;
 75 percent job placement rate within three months of program completion;  Average starting wages of $22 to $25 per hour; and
 Achievement of a local living wage within 36 months of program completion.

For reference, the living wage for a single adult without children in San Mateo County was approximately $28 per hour in 2023.

Quarterly performance reports from the Pilot Program are available on the City’s website:
https://www.ci.east-palo-alto.ca.us/econdev/page/measure-hh-pilot-workforce-development-program.

Third-Party Evaluation
When establishing the Pilot Program, the City Council expressed interest in obtaining an independent consultant to comprehensively evaluate the results at the end of the pilot period and recommend program and operational enhancements. Following a competitive procurement process, the City Council approved an agreement with Informing Change on July 16, 2024, to conduct a comprehensive evaluation of the pilot program.

Informing Change’s scope of services included:
 Outcome assessment,
 Program improvement recommendations,
 A workforce development landscape scan, and
 Development of a wage assessment tool.

The evaluation was conducted between August 2024 and April 2025 and included interviews, focus groups, site visits, and quantitative data analysis. During this period, a City Council subcommittee provided additional input regarding the evaluation process. The evaluation framework was developed based on background research, stakeholder interviews, and Councilmember feedback. The City Council reviewed and accepted the evaluation framework on January 7, 2025.

On July 15, 2025, Informing Change presented its findings and recommendations to the City Council (Attachment 1). The Evaluation incorporated feedback from the Council subcommittee, findings from a landscape scan of workforce development programs (see Appendix C of the Evaluation), and comments from City staff and the three participating organizations.

Key recommendations included:
 Expanding eligible training opportunities in STEM and the building trades;  Strengthening employer engagement and hiring partnerships;  Increasing access to paid internships and apprenticeship opportunities; 62 POLICY AND ACTION 8.1
 Enhancing wraparound services to improve participant access and success;  Improving data collection and long-term outcome tracking;  Establishing clear performance metrics and accountability measures; and  Promoting collaboration, alumni engagement, and continuous program improvement.

In addition to Informing Change’s recommendations, the City Council directed staff to incorporate the following priorities into future workforce development programming:

Program Scope & Eligible Pathways:
 Expand beyond traditional technology occupations to include applied STEM, life sciences, biotechnology, and skilled trades occupations.
 Clearly identify career pathways that lead to high-demand, living-wage employment opportunities.

Employer & Workforce Partnerships:
 Require strong partnerships with employers, labor unions, and pre-apprenticeship programs.
 Create paid, structured pathways (e.g., internships, apprenticeships) with clear expectations and shared value.

Data, Evaluation & Accountability:
 Implement robust data collection, including longitudinal tracking of wages and career trajectories.
 Incorporate stakeholder and City Council input into evaluation and continuous improvement.

Equity & Access:
 Prioritize participation among underrepresented groups, including women and nonEnglish-speaking residents.  Recognize bilingual and transferable skills as workforce assets.

Funding Strategy & Leverage:
 Encourage leveraging private-sector and external funding sources.  Clearly define eligible supportive services and prohibit subsidizing exploitative labor practices.

Policy Alignment & Governance:
 Ensure program alignment with Measure HH requirements.  Consider formal advisory or subcommittee oversight to guide strategic implementation. 63 POLICY AND ACTION 8.1
Economic Development Strategic Plan
In January 6, 2026, the City Council adopted the Economic Development Strategic Plan (EDSP).

The EDSP identified several strengths of the City's existing workforce development programs, including technology training and entry-level career preparation for youth and young adults.

However, it also identified several gaps, including limited pathways into advanced manufacturing, biotechnology, healthcare, green jobs, and other emerging industries.

The EDSP also identified opportunities to strengthen workforce development efforts through expanded partnerships with employers, regional educational institutions, workforce development organizations, entrepreneurship support programs, and economic mobility initiatives. Priority Action 2B.1 of the EDSP specifically recommends that the City collaborate with workforce development partners to provide industry-aligned training opportunities that connect East Palo Alto residents to emerging economic opportunities.

Since adoption of the EDSP, staff have worked to develop the draft Request for Proposals included as Attachment 2.

Analysis
Proposed Request for Proposals
The proposed RFP incorporates recommendations received from the City Council, pilot program participants, Informing Change, and the Economic Development Strategic Plan. It expands services into four Service Areas (see Section III – Scope of Work in Attachment 2):

1. STEM and Life Sciences Training
This service area would support education, workforce training, and pre-apprenticeship programs that prepare East Palo Alto residents for careers in STEM, life sciences, biotechnology, and related fields. Programs should respond to labor market demand, provide equitable access and supportive services, and incorporate employer partnerships that offer work-based learning and employment opportunities.

Staff anticipates serving approximately 40 to 60 participants over a two- to three-year period.

2. Building Trades Training
This service area would support education, workforce training, and pre-apprenticeship programs that prepare residents for careers in the construction trades and related industries. Programs should include industry partnerships, work-based learning opportunities, and supportive services designed to reduce barriers to participation.

Staff anticipates serving approximately 40 to 60 participants over a two- to three-year period. 64 POLICY AND ACTION 8.1

3. Master Contractor
The proposed Master Contractor would coordinate workforce development partnerships among employers, labor organizations, educational institutions, community organizations, and Measure HH contractors. Responsibilities would include:
 Expanding work-based learning opportunities;
 Facilitating internships and apprenticeships;
 Coordinating employer and alumni engagement activities;  Administering fellowship and scholarship opportunities;  Supporting participant transitions into living-wage careers;  Coordinating outreach efforts; and
 Supporting longitudinal tracking and program improvement.

During the initial implementation period, the Master Contractor would also assist with quarterly reporting, invoice processing, and participant engagement activities.

4. Program Evaluator
The Program Evaluator would develop and administer a standardized system for program evaluation, data collection, performance measurement, and longitudinal tracking.

Responsibilities would include:
 Establishing performance metrics and reporting protocols;  Conducting periodic evaluations;
 Tracking employment and wage outcomes;
 Preparing reports and presentations for the City Council; and  Providing technical assistance to contractors and City staff.

The proposed structure is intended to strengthen accountability, improve participant outcomes, increase employer engagement, and support long-term evaluation of workforce development investments funded through Measure HH.

Measuring Success
Staff recommends continuing to measure the success of the training programs (Service Areas 1 and 2) using the performance framework established during the Measure HH Pilot Workforce Development Program, with modifications based on lessons learned during implementation and recommendations from the third-party evaluation. Staff is seeking City Council feedback on the proposed performance measures and contract structure described below. Following Council direction, staff will work with the selected Program Evaluator to finalize reporting requirements and performance standards for future agreements.

1. Participant Demographics and Equity Outcomes: Contractors would be required to collect and report non-confidential demographic information for program participants, including age, gender, race/ethnicity, educational attainment, employment status, 65 POLICY AND ACTION 8.1
language proficiency, and other relevant characteristics. These data would be used to evaluate the extent to which programs are successfully serving East Palo Alto residents and reaching populations that have historically experienced barriers to workforce participation and advancement.

2. Program Outreach and Recruitment: Contractors would report on outreach and recruitment activities, including the types of outreach conducted, populations targeted, partnerships established, and the number of individuals reached. Consistent with City Council direction, staff recommends emphasizing coordinated and culturally responsive outreach strategies to maximize awareness and participation among East Palo Alto residents.

3. Career Development and Employment Services: Contractors would report on career counseling, job readiness services, employer engagement activities, internships, apprenticeships, and job placement services provided to participants. The City's objective remains to connect participants to career pathways that lead to living-wage employment opportunities.

4. Supportive Services: Recognizing that participants often face barriers to training completion and employment, contractors would report on supportive services provided, including but not limited to transportation assistance, childcare support, technology access, language services, mentoring, and case management. Staff recommends continuing to prioritize supportive services that improve participant access and program completion.

5. Performance Metrics: .Staff recommends continuing to utilize the core performance metrics established during the pilot program, while refining data collection and longitudinal tracking methods through the Program Evaluator.
a. Program Completion Rate: Contractors would be expected to achieve an aspirational goal of an 85 percent program completion rate, measured from participant enrollment through successful completion of the training or certification program. During the pilot program, this performance measure was linked to contract compensation, with unexpended funds available to support additional participants if completion targets were not achieved.
b. Job Placement Rate: Contractors would be expected to achieve an aspirational goal of placing at least 75 percent of program graduates into employment within three months of completing their training program.
c. Starting Wages & Living Wage Progression: Staff recommends continuing to measure both participants' starting wages and their progression toward achieving a living wage. While workforce development providers noted that many participants may not initially enter employment at a living wage, training programs should demonstrate clear career pathways and wage progression opportunities.

Contractors would therefore be expected to document participants' wage trajectories and progress toward achieving a living wage within 36 months of program completion.
66 POLICY AND ACTION 8.1

6. Performance Assessment: Contractors would be required to provide periodic assessments of program performance, including program successes, challenges encountered, lessons learned, recommended improvements, and proposed modifications to program delivery. These assessments will support continuous improvement and allow the City to adapt workforce investments to changing labor market conditions and participant needs.

7. Program Evaluation and Feedback: Contractors would also be required to evaluate the effectiveness of their programs and provide recommendations regarding program design, implementation, and outcomes. Staff recommends that participant satisfaction surveys and feedback mechanisms be coordinated through the proposed Master Contractor and Program Evaluator to improve response rates and data consistency.

8. Program Expenditures and Payment Structure: During the Pilot Program, funds were initially disbursed with 50 percent provided upon participant enrollment and the remaining 50 percent upon successful completion of the training program. Based on contractor feedback that the initial payment amount was insufficient to cover upfront staffing and administrative costs, the City adjusted the payment structure during the Pilot Phase II period to provide 60 percent upon enrollment and 40 percent upon completion. Staff recommends continuing the 60/40 payment structure for future contracts, as it provides contractors with sufficient operating capital while preserving incentives for successful participant completion and program outcomes.

Proposed Contract Terms
Staff is also seeking City Council direction on the proposed contracts structure for the providers under Service Areas 1 and 2. Based on lessons learned during implementation of the Pilot Program, staff recommends modifying several contract provisions to improve accountability, participant tracking, and program effectiveness. Table 2 below summarizes the recommended terms for Service Areas 1 and 2 based on the lessons learned from the pilot program.

Table 2. Lessons Learned and Recommended Contract Terms for Service Areas 1 and 2 Item Pilot I Program/Lessons
Learned
Recommended Future
Program Terms
Contract Term
The initial 18-month term provided
insufficient time to track
employment outcomes after
participants completed training.

The City also approved multiple
extensions and supplemental
funding allocations during the pilot
period.

Establish an initial three-year contract
term, with the option for one to two
one-year extensions, subject to
Council approval. Conduct a new
competitive procurement process
every three years rather than
providing supplemental funding during
an active contract period.

Aspirational
Goals and
The pilot program established
aspirational goals of 85% program
completion, 75% job placement
Continue using the pilot performance
framework, with updated starting
wage targets of $23–$26 per hour,
67 POLICY AND ACTION 8.1
Performance
Metrics
within three months, average
starting wages of $22–$25 per
hour, and attainment of a living
wage within 36 months. These
metrics provided useful
performance benchmarks.
depending on the occupational field,
while maintaining the existing
completion, placement, and living
wage goals.

Compensation
(per program
enrollee)
The initial payment structure of
50% upon enrollment and 50%
upon completion created cash
flow challenges for providers. The
revised 60%/40% structure better
supported program operations
while maintaining accountability
for participant outcomes.

Continue the 60% payment upon
enrollment and 40% payment upon
successful program completion model.

Unexpended
Funds
Allowing providers to redirect
funds from participants who did
not complete training to additional
enrollees improved program
flexibility and maximized use of
available resources.

Continue allowing unexpended
participant funds to be reassigned to
additional eligible program
participants.

Monitoring
and Reporting
(program
enrollees)
Quarterly reporting provided
adequate oversight; however,
providers experienced challenges
conducting participant satisfaction
surveys and collecting consistent
outcome data.

Continue requiring quarterly
performance reports and invoices,
along with a final evaluation report.

Utilize the Master Contractor and
Program Evaluator to support
participant surveys and standardized
data collection.

PostAgreement
Tracking
Providers experienced difficulty
maintaining contact with
participants after program
completion, limiting the City's
ability to evaluate long-term
outcomes.

Assign the Master Contractor
responsibility for supporting
longitudinal tracking of employment,
wage progression, and career
advancement outcomes for up to 36
months following program completion.

Support
Resources
(program
enrollees)
Supportive services were critical
in helping participants overcome
barriers to enrollment, completion,
and employment.

Continue requiring contractors to
provide and report on supportive
services that reduce barriers to
participation and employment.

Outreach to
East Palo Alto
Residents
Contractors conducted extensive
outreach activities, but
coordination among providers was
limited.

Continue requiring outreach reporting
while utilizing the Master Contractor to
coordinate citywide outreach and
recruitment efforts targeting East Palo
Alto residents.

Program Staff Regular reporting on staffing
levels and changes helped
monitor contractor capacity and
program delivery
Continue requiring reporting on
staffing levels, staffing changes, and
program delivery capacity throughout
the contract term.
68 POLICY AND ACTION 8.1
Next Steps
Staff will incorporate Council’s additional input on the recommended enhancements to the Measure HH Workforce Development Program in the draft RFP and aim to release it this Summer 2026.

The proposed implementation timeline is as follows:
 Summer 2026: Develop new RFP language and issue RFP. Review proposals (based on the four listed criteria in the RFP, which are experience – 40 points, capacity to perform – 30 points, cost effectiveness – 15 points, familiarity with EPA – 5 points, and references – 5 points), conduct interviews, and prepare recommendation to the City Council.  Fall 2026: Come to City Council for contract approval and draft and execute contracts with Master Contractor and Program Evaluator.
 Winter 2027: Draft and execute contracts with STEM/Life Sciences Fields Training and Building Trades training contractors.
 Ongoing (2026 and beyond): Monitor implementation, convene partners and employers, collect and analyze data, post-performance reports, and report outcomes to City Council.

Convene advisory groups and begin outreach to employers and unions.

Fiscal Impact
On June 23, 2026, the City Council adopted the Fiscal Year 2026-27 budget, which allocated up to $1.1 million in Measure HH funds to continue the Workforce Development Program. The funds will be awarded to selected organizations upon completion of the RFP process.

At the end of June 2026, the estimated balance in the Measure HH Fund is approximately $8.2 million. Sufficient funds are available to fund future contracts after issuance of an RFP, for continuation of the Measure HH Workforce Development Program.

It should be noted, however, that the fund is not intended to be used exclusively for creating job opportunities. A minimum of 35 percent of the fund must be reserved to support the production of affordable housing, which would benefit from a build-up of the fund balance. On February 6, 2024, with adoption of the 2024-2028 Affordable Housing Strategy, the City Council discussed allocating 50 percent of Measure HH funds to affordable housing projects for the next five years.

On June 16, 2026, the City Council also budgeted $4 million in Measure HH funds for an Affordable Housing Production Notice of Funding Availability (“NOFA”) to be released in Winter 2026/2027. As City staff develops the program to solicit funding opportunities for affordable housing projects, proposals will be brought to the Council through a separate process.

The Measure HH special tax, set at $2.50 per square foot on commercial office space of 25,000 square feet or more, generates approximately $1,677,000 annually. However, fluctuating financial and market conditions may affect the annual revenue generated.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website 69 POLICY AND ACTION 8.1
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.

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

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Evaluation of Measure HH Pilot Workforce Development Program

2. Draft Request for Proposals

3. Resolution
70 Measure HH Pilot Workforce
Development Program
Evaluation Report
JUNE 2025
Prepared for:

The City of
East Palo Alto
Prepared by:

Informing Change
ATTACHMENT 1
71 Informing Change i
Acknowledgments
Informing Change would like to acknowledge and express our gratitude to those who participated in our study.

This includes East Palo Alto residents who participated in evaluation interviews and focus groups, staff from Measure HH partners—JobTrain, Live In Peace, and StreetCode Academy—who participated in sensemaking sessions, coordinated interviews and provided data to the evaluation, and East Palo Alto city staff and City Council members who guided the evaluation to inform the ongoing evolution of the Measure HH Pilot Workforce Development Program to support East Palo Alto residents.

THIS REPORT WAS PREPARED BY:
• Evan Gattozzi, Senior Associate, Informing Change
• Rebekah Blume, Associate, Informing Change
• Inti Chomsky, Associate, Informing Change
• Amy Chu, Research Assistant, Informing Change
• Johnny Du, Writer/Editor, Informing Change
• Michael P. Arnold, PhD, MSW, MPH, Partner & Co-Executive Director, Informing Change 72 Informing Change ii
Table of Contents
Acknowledgments_________________________________________________________________________________________________________i Table of Contents _________________________________________________________________________________________________________ii Introduction_______________________________________________________________________________________________________________1 Measure HH & The Pilot Workforce Development Program _________________________________________________________ 1 The Evaluation___________________________________________________________________________________________________________ 2 Methods _______________________________________________________________________________________________________________ 2 Strengths & Limitations ______________________________________________________________________________________________ 3 Report Overview ________________________________________________________________________________________________________ 3 Pilot Findings______________________________________________________________________________________________________________4 Reach & Residents_______________________________________________________________________________________________________ 4 Race/Ethnicity ________________________________________________________________________________________________________ 5 Gender _________________________________________________________________________________________________________________ 6 Age _____________________________________________________________________________________________________________________ 7 Education Level_______________________________________________________________________________________________________ 7 Employment Status ___________________________________________________________________________________________________ 8 Employment Outcomes _________________________________________________________________________________________________ 9 Wage Outcomes _________________________________________________________________________________________________________ 9 Other Benefits for Participating Residents __________________________________________________________________________ 11 Factors Supporting & Inhibiting Outcomes__________________________________________________________________________ 12 Discussion & Recommendations _____________________________________________________________________________________ 15

1. Improving Access to Employment Opportunities ________________________________________________________________ 15

2. Sustaining & Strengthening Measure HH Pilot Workforce Development Program Approaches _____________ 16

3. Monitoring Wages & Other Outcomes_____________________________________________________________________________ 18 Conclusion & Looking Forward ______________________________________________________________________________________ 20 Appendix A: Evaluation Questions___________________________________________________________________________________ A1 Appendix B: Measures of Interest____________________________________________________________________________________ B1 Appendix C: Landscape Scan__________________________________________________________________________________________ C1 73 Informing Change 1
Introduction

MEASURE HH &

THE PILOT WORKFORCE DEVELOPMENT PROGRAM
The influx of large companies into Silicon Valley—primarily from the technology sector—has brought benefits and challenges to long-time East Palo Alto (EPA) residents. Concerned that new economic development would lead to rising rents and displacement without creating accessible employment opportunities for current residents, over 75% of EPA voters approved Measure HH in Fall 2018. Measure HH is a revenue source for the City of East Palo Alto (the City) funded through an annual parcel tax of $2.50 per square foot on commercial office spaces of 25,000 square feet or more. The funds can only be used to create or maintain programs that (a) provide affordable or supportive housing or (b) facilitate access to job opportunities in EPA in the science, technology, engineering, and mathematics (STEM) sectors and building trades, and strengthen the City’s First Source Hiring Program.1,2
In 2020, the City engaged Brightline Defense Project (Brightline), a Bay Area consulting team, to identify strategies to maximize the use of Measure HH funds to facilitate access to job opportunities for EPA residents.

Brightline’s final 2021 report highlighted promising sectors with upwardly mobile jobs and identified potential initiatives to support EPA residents in obtaining those jobs. In the report, they recommended that the City support job training and career certification opportunities in the building trades, technology and STEM (science, technology, engineering, mathematics), life sciences and biotech, or entrepreneurship sectors in partnership with local organizations that currently administer such programs. Brightline proposed eight initiatives. Although they emphasized the importance of training opportunities such as pre-apprenticeships and internships, they acknowledged these typically cost more than less-intensive workforce development (WFD) models.

With these considerations, the City designed the Measure HH Pilot Workforce Development Program (the pilot) to provide job training to EPA residents in the STEM and building trades sectors. In early 2022, the City issued a Request for Proposals (RFP) to identify organizations to receive Measure HH funding and partner in the pilot.

These organizations would provide training opportunities to residents and support their access to jobs that offer a living wage (defined by the City Council as a minimum of $28 an hour in 2022 for a single adult without children).

In March 2023, the City entered into 18-month contracts with three local organizations (partners) to execute the pilot program: JobTrain, Live In Peace, and StreetCode Academy (StreetCode). These organizations met the recommendations put forth to the City Council and demonstrated a consistent track record of providing WFD services in EPA. In September 2024, the City Council extended the initial pilot program for six months to February 2025 (referred to as Phase I) and allocated additional Measure HH funds to the three organizations to continue the pilot program (referred to as Phase II) to May 2025. The Phase II allocation allowed the pilot program to continue while Informing Change was conducting its evaluation. 1 https://www.ci.east-palo-alto.ca.us/econdev/page/workforce-development 2 A maximum of 15% of Measure HH funds can also be used to pay for the cost to the City of administering and reporting on the ordinance.
74 Informing Change 2

THE EVALUATION
In Spring 2024, the City issued an RFP for a third-party, external organization to evaluate the pilot program and commissioned Informing Change in August 2024 as the independent, third-party evaluator. The evaluation has three key goals (see Appendix A for the questions that guided the evaluation):

1. Understand the pilot’s initial, short-term outcomes (and progress toward outcomes), particularly related to supporting residents' access to jobs and career mobility in high-tech STEM sectors and building trades.

2. Inform improvements to the pilot.

3. Inform the East Palo Alto City Council about evaluating future wage outcomes and the potential for wage growth.

We intend this evaluation to inform the City Council on highlights, insights, and lessons about the Measure HH pilot program and its potential to meet the employment needs of East Palo Alto residents. We include recommendations to consider when refining the program and allocating Measure HH funds beyond the pilot period.

Methods
We conducted the evaluation activities from August 2024 through April 2025, and included the following methods and data:

Interviews & Focus Groups
We interviewed or facilitated focus groups with 14 EPA residents who participated in Measure HH-funded programs, nearly meeting our initial goal of 15 interviews: JobTrain (9), Live In Peace (2), and StreetCode (3).

Eight of these residents attended trades programs, and six attended STEM programs.

We also interviewed four (4) employer partners in the trades and technology sectors. At least one of the employer partners’ companies employed an EPA resident who had attended Measure HH-funded programs.

Site Visits
We visited each program partner’s site to understand their context further and learn firsthand about the programs being offered. We also conducted an on-site participant focus group.

Field Research
We researched comparable WFD programs to understand their structures, outcomes, and processes. This learning helped us identify similarities and differences and understand benchmarks to make recommendations and contextualize evaluation results.

Background Documents & Program Data Analysis
We reviewed RFPs, council meeting notes, and the partners’ quarterly performance reports on the Measure HH pilot program. We also aggregated and analyzed data from these quarterly reports and additional data from partners about residents participating in their Measure HH-funded programs. 75 Informing Change 3
Exploratory Interviews with City Staff & Partners
At the outset of the evaluation, we conducted six (6) exploratory interviews: three (3) with City staff and City Council Measure HH evaluation subcommittee members and three (3) with Measure HH partners.

Sensemaking Sessions
We held two (2) sensemaking sessions to contextualize and refine preliminary findings. One session included City staff and program partners, and the other included City staff and City Council evaluation subcommittee members.

Strengths & Limitations
We used a mixed-methods approach in our evaluation, examining qualitative and quantitative data to provide a holistic understanding of the pilot model and initial outcomes. We gathered multiple perspectives, including residents participating in Measure HH-funded programs, employers, city staff, and Measure HH partners.

There are a few key limitations to the evaluation:

1. JobTrain graduates are overrepresented in our interview data, as we interviewed nearly twice as many (9) compared to Live In Peace and StreetCode graduates combined (5).

2. Evaluation resources allowed for five interviews with employer partners. We fell one interview short of our intended goal, as few employers were responsive to interview requests. More employer partner interviews are needed to provide greater representation.

3. Background and wage data are not consistently available for all EPA residents receiving training via Measure HH funding. Partners collected pre-program employment data for most participating residents (81 of 97) and post-program employment data for about half (49 of 97). Given logistic and capacity constraints, partners did not consistently collect pre-program wage data prior to the evaluation. We are therefore unable to provide this information. Future attempts to track and collect pre-program wages will need to account for this task's labor- and time-intensive nature and the sensitivity required to prevent discouraging program participation while encouraging ongoing communication between participants and program staff.

4. Due to the evaluation's short time frame, we are unable to provide longitudinal data on employment attainment, job growth, and wage growth. Future data collection and analysis will be required to understand these long-term Measure HH outcomes for residents fully.

REPORT OVERVIEW
In this report, we share evaluation findings about the Measure HH Workforce Development Pilot Program and considerations for the program’s evolution. We organize the report into the following sections:

1. Pilot Findings: Includes data and findings about the backgrounds and characteristics of EPA residents participating in Measure HH-funded programs, pilot outcomes about employment, wages, and other benefits, and factors that support or inhibit outcomes.

2. Discussion & Recommendations: Offers evaluation insights, reflections, and recommendations for city staff and the City Council to consider in the next phase of the pilot program.

3. Appendices: Includes Evaluation Questions (Appendix A), Measures of Interest (Appendix B), and Landscape Scan (Appendix C).
76 Informing Change 4
Pilot Findings

REACH & RESIDENTS
To ensure Measure HH-funded programs were reaching a diverse selection of residents in East Palo Alto, the City asked its partners to collect and report on select demographic and employment data about participating residents. While the pilot phase agreement terms set goals for program completion rates and post-program wages, there were no specific demographic targets for Measure HH-funded programs other than requiring that funding support EPA residents.3 At the time of the evaluation, not all data points were available for all residents participating in Measure HH-funded programs. Throughout this report, we summarize the available data collected by partners and indicate the number of residents represented in each chart and table.

The Measure HH Pilot Workforce Development Program funded job training for 97 East Palo Alto residents in three local training programs (Exhibit 1). Residents were slightly more likely to choose STEM than trades training opportunities (Exhibit 2). Program partners noted that much of their recruitment happens through word of mouth, friends and family members, resources at school, and community reputation. “I heard about [the training] through my family, sister, and brother.

I think my mother also came through here doing different programs."4

STEM & TRADES WORKFORCE DEMOGRAPHIC DATA
Blue boxes throughout the Reach & Residents section include demographic data about the STEM and trades workforce to set additional context and comparisons to the pilot’s reach.

Research shows the US STEM workforce gradually diversified between 2011-21, with increased representation of women and underrepresented racial/ethnic groups.5 Even so, disparities persist. Construction industry statistics, where women, Black, and Asian workers are underrepresented, tell a different story about diversity in the trade. 3 “Table 1. Pilot Phase I Agreement Terms,” from East Palo Alto City Staff Report, by Karen Camacho, Housing and Economic Development Manager; Hanson Hom, Deputy Manager Special Projects; and Amy Chen, Community and Economic Development Director (September 3, 2024). 4 All quotes in blue are from interviews conducted with EPA residents who participated in Measure HH-funding programs. 5 National Center for Science and Engineering Statistics (NCSES), Directorate for Social, Behavioral and Economic Sciences, National Science Foundation. (2023). Diversity and STEM. Women, Minorities, People with Disabilities. Retrieved May 21, 2025 from https://www.luminafoundation.org/wp-content/uploads/2023/02/Diversity.and_.STEM_.2023.pdf EXHIBIT 1
Participation by Partner Program
(N=97)

PARTNER

PROGRAM

EPA PARTICIPATING

RESIDENTS
JobTrain 48
Live In Peace 30
StreetCode Academy 19
TOTAL 97
EXHIBIT 2
Program Track
(N=97)
48%
52%
0% 25% 50% 75% 100%
Residents in trades track
Residents in STEM track
77 Informing Change 5
Race/Ethnicity
The racial/ethnic backgrounds of East Palo Alto residents participating in Measure HH-funded programs are similar to the overall EPA population (Exhibit 3).6 The proportion of residents participating in Measure HH-funded programming compared to the general EPA population is slightly lower for those identifying as Hispanic/Latino, white, or multi-racial, and slightly higher for those identifying as Black or Pacific Islander.

EPA is majority Hispanic or Latino, and just over half its residents (52%) speak Spanish at home.7 As such, program partners, City staff, and City councilmembers emphasized the importance of reaching Spanish-speaking residents via Measure HH-funded programs. JobTrain regularly offers English classes for Spanish speakers to increase their language proficiency and support their success in JobTrain’s courses, which are currently offered only in English.8 During the pilot, StreetCode added opportunities to meet Spanish-speaking residents’ needs by translating their website into Spanish and adding a Spanish-language class in 2025 via Measure HH.9

RACE/ETHNICITY & THE STEM & TRADES WORKFORCE
• In 2021, Hispanic workers represented 15%, Asian workers 10%, and Black workers 9% of the total STEM workforce compared to 18%, 6%, and 11%, respectively, of the general workforce.10 • The proportion of Hispanic workers in the construction industry increased from 20% in 2003 to 30% in 2020, compared to 18% of the general workforce. Black (5%) and Asian (2%) workers are underrepresented in the construction industry, compared to 11% and 6% of the general workforce, respectively.11 • In 2020, Hispanic, Black, and American Indian or Alaska Native STEM workers had lower median earnings than white or Asian STEM workers.12
• In 2020, the median weekly earnings for unionized construction workers were $1,254, compared to $920 for nonunion construction workers.13 However, union membership varies by race, with white (15%) and Black (12.7%) workers more likely to be in unions compared to Hispanic (8.7%) and Asian (7.6%) workers.14 6 East Palo Alto Census Data is drawn from: US Census Bureau. (2020). RACE. Decennial Census, DEC Demographic and Housing Characteristics, Table P8. Retrieved April 7, 2025, from https://data.census.gov/table/DECENNIALDHC2020.P8?g=160XX00US0620956.

The US Census counts Hispanic or Latino identification separately from race. Due to this, the total percentage in the EPA Census Data column exceeds 100%.
7 US Census Bureau, 2020 Decennial Data. (2020). Populations and People. Retrieved May 1, 2025, from https://data.census.gov/vizwidget?g=160XX00US0620956&infoSection=Language+Spoken+at+Home. 8 The specific English classes offered for Spanish speakers include basic and intermediate English, as well as computer skills in Spanish:
https://www.jobtrainworks.org/english-education-evening-classes/ 9 Interested residents can view StreetCode’s website in Spanish (https://streetcode.org/es/), but there is no option to filter programming options by language of instruction (https://streetcode.org/es/classes/). 10 National Center for Science and Engineering Statistics (NCSES), Directorate for Social, Behavioral and Economic Sciences, National Science Foundation. (2023). Diversity and STEM. Women, Minorities, People with Disabilities. Retrieved May 21, 2025 from https://www.luminafoundation.org/wp-content/uploads/2023/02/Diversity.and_.STEM_.2023.pdf 11 US Bureau of Labor Statistics (2022).The Construction Industry: Characteristics of the Employed, 2003–20. Retrieved May 23, 2025 from https://www.bls.gov/spotlight/2022/the-construction-industry-labor-force-2003-to-2020/home.htm . 12 Supra, note 10. 13 Supra, note 11. 14 Ibid.

EXHIBIT 3
Program Participant & EPA Census Data Race/Ethnicity

RACE / ETHNICITY

MEASURE HH

RESIDENTS
(N=97)

EAST PALO ALTO

CENSUS DATA
(N=30,034)
Hispanic or Latino 57% 66%
Black 20% 11%
Pacific Islander 17% 7%
Multi-Racial 8% 15%
White (non-Hispanic) 6% 12%
Decline to state 2% -
78 Informing Change 6
Gender
The proportion of female-identifying residents participating in Measure HH-funded training is lower than the overall EPA population (Exhibit 4).15
Nearly all female residents whose training was funded through Measure HH chose the STEM track rather than the trades track. Program partners adopted a range of approaches to recruit and support women in their programs, including those in the trades. For example, JobTrain partners with organizations like Women in Construction to promote gender diversity in classes and on-site resources like daycare that help ease barriers for parents, especially women. StreetCode reported that their new Spanish-language programming attracted primarily female residents.

Regarding female participants' limited participation in trades programs, partners emphasized that they respect all participants’ expressed interests and hope to assist them in choosing the right job or career pathway that suits them. While partners provide opportunities for career exploration, exposure, and education in STEM, trades, and other sectors, they intentionally avoid directing participants down a path that does not align with participants’ preferences and choices.

GENDER & THE STEM & TRADES WORKFORCE
• In 2023, the gender gap in STEM remains significant, with women making up only 28% of the STEM workforce.16 • In 2020, women had lower median earnings than men in multiple STEM occupations, including those in science, engineering, science-related, engineering-related, and middle-skill occupations.17 • In 2020, about 11% of employees in the construction industry identified as women, similar to recent years.18 15 US Census Bureau, US Department of Commerce. (2023). Age and Sex. American Community Survey, ACS 5-Year Estimates Subject Tables, Table S0101. Retrieved April 7, 2025, from https://data.census.gov/table/ACSST5Y2023.S0101?g=160XX00US0620956.

Percentages do not add up to 100% due to rounding.
16 Professional Education. The Gender Gap in STEM: Still Gaping in 2023. Retrieved May 21, 2025, from https://professionalprograms.mit.edu/blog/leadership/the-gender-gap-in-stem/. 17 Supra, note 10.. 18 US Bureau of Labor Statistics (2022).The Construction Industry: Characteristics of the Employed, 2003–20. Retrieved May 23, 2025 from https://www.bls.gov/spotlight/2022/the-construction-industry-labor-force-2003-to-2020/home.htm .

EXHIBIT 4
Program Participant & EPA Census Data Sex

SEX MEASURE HH RESIDENTS
(N=97)

EAST PALO ALTO CENSUS
DATA
(N=29,143)
Female 30% 52%
Male 68% 48%
Decline to state 2% -
79 Informing Change 7
Age
Participating residents skew slightly younger than the overall EPA population over 17 years of age (Exhibit 5).19 Participant residents ranged from 17 to 57 years of age, with an average (mean) of 26.0 years.

Over half (60%) of participating residents are under 25 years old compared to 32% of all EPA residents. Live In Peace specifically serves young people 24 years old and younger, which contributes to Measure HH partners serving a larger percentage of young people compared to the overall age distribution of the EPA population.

JobTrain and StreetCode are not focused on serving specific ages.

Education Level
Participating residents are more likely to hold a high school diploma or equivalent and less likely to hold a 2-year, 4-year, or post-graduate degree than the overall EPA population (Exhibit 6).20 EXHIBIT 6
Program Participant & EPA Census Data Highest Education Level Completed 19 Supra, note 15. 20 Census data about residents in trade/technical/vocational educational opportunities is not available. 12%
14%
6%
23%
22%
1%
2%
3%
1%
4%
24%
61%
4%
0% 25% 50% 75% 100%
Decline to state
Post-graduate degree
4-year college / Bachelor's degree
2-year college / Associate's degree
Trade/technical/vocational training
Some college or tech school
High school graduate or equivalent (e.g., GED)
Less than a high school degree or HSE
Residents in MHH-Funded Programs
(N=97)
EPA Census Data (N=22,520)
EXHIBIT 5
Program Participant & EPA Census Data Age

AGE RANGE

MEASURE HH

RESIDENTS
(N=73)

EAST PALO ALTO

CENSUS DATA
(N=29,143)
0-14 0% 17%
15-17 1% 5%
18-24 59% 10%
25-44 36% 32%
45-64 4% 25%
65+ 0% 10%
80 Informing Change 8

EDUCATIONAL ATTAINMENT &

THE STEM & TRADES WORKFORCE
• A higher portion of STEM workers with a high school diploma or less are employed in STEM occupations that require credentials like certificates or an associate’s degree (i.e., middle-skill occupations), while a larger portion of those with a bachelor’s degree or higher work in science- and engineering-related occupations. 21 • Construction workers have “the lowest levels of education among all industries except for agriculture.”22 About 40% of construction workers had some college attainment, compared to about 65% of the general workforce.23 Educational attainment is likely higher for the one in five industry workers employed in management, business, and financial operations positions rather than in production.24 • The Center for Education and the Workforce projects that, by 2031, over half (52%) of construction jobs will require a high school diploma or less, 30% will require additional middle-skill training, and 18% will require a bachelor's degree.
25 The Center for Construction Research & Training notes that “most construction knowledge is learned on the job or from special courses, licensing, or certification requirements and apprenticeships” rather than through formal education, and that many construction jobs have historically had no formal education requirements.26 However, this might change as more industry workers are encouraged to attend apprenticeship programs, trade or vocational schools, association training classes, or community college.27 Employment Status
Nearly half of the participating residents were not employed when they began their Measure HH-funded training (Exhibit 7). The proportion of participants unemployed at entry (47%) is overrepresented compared to the proportion in the overall EPA population (4%).28 EXHIBIT 7
Pre-Program Employment
(n=81)
21 National Science Board. (2024). The STEM Labor Force: Scientists, Engineers, and Skilled Technical Workers. Retrieved May 21, 2025 from https://ncses.nsf.gov/pubs/nsb20245. 22 CPWR - The Center for Construction Research and Training. (2018). Chart Book (6th edition): Education and Training – Educational Attainment and Internet Usage in Construction and Other Industries. Retrieved May 21, 2025 https://www.cpwr.com/research/datacenter/the-construction-chart-book/chart-book-6th-edition-education-and-training-educational-attainment-and-internet-usage-inconstruction-and-other-industries/ 23 Ibid. 24 Supra, note 18. 25 Carnevale, A. P., Smith, N., Van Der Werf, M., & Quinn, M. C. (2023). National Report - After Everything: Projections of Jobs, Education, and Training Requirements through 2031. Retrieved May 21, 2025 https://cew.georgetown.edu/cew-reports/projections2031/ 26 Supra, note 22. 27 Supra, note 22. 28 East Palo Alto, CA Unemployment Rate (I:EPACAUR) 3.60% for March 2025:
https://ycharts.com/indicators/east_palo_alto_ca_unemployment_rate#:~:text=East%20Palo%20Alto%2C%20CA%20Unemployment%2 0Rate%20is%20at%203.60%25%2C,long%20term%20average%20of%209.18%25. 1%
19%
33%
47%
Decline to state
Employed - Part-time
Employed - Full-time
Not employed
0% 15% 30% 45% 60%
81 Informing Change 9

EMPLOYMENT OUTCOMES
Partners shared post-program employment data for 53 of 97 (55%) participating residents. Of these 53, 81% were employed after completing a Measure HH-funded program (Exhibit 8), most in a field related to their training. Post-program employment rates were similar across the two tracks. Notably, the group not employed fell from 47% pre-program to 8% post-program in both STEM and trades sectors. All participating residents who were unemployed at the start of the program and for whom we have pre- and post-program employment data were employed at least part-time by the end of the program (13 residents). “I learned from working—hands
on, helping my family [with]
construction … But I need to know
safety basics, how to use the tools,
apply to the city code, and stuff
like that … I learned a lot from [the
training] about mathematics and
how to properly use the tools.”
Residents who completed Measure HH-funded
training were hired for jobs in fields related to their training. For example, residents have been hired as
certified nursing assistants, sheet metal workers, electricians, plumbers, property managers, and drywallers, and some within union trades and others non-union. One resident pursued entrepreneurship and started their own photography business. Other residents are working in construction, IT, or tech companies. Data on specific jobs and responsibilities was unavailable.29 Partners support younger residents who may be building skills for their first job and older adults looking to start a second career or upskill in their current job or industry.30

WAGE OUTCOMES
At the time of the evaluation, partners reported wage data for all but two residents from whom post-program data were collected (51 of 53). The average (mean) hourly wage of participating residents employed fulltime after completing their respective programs was $26.68.

Exhibit 9 on the following page shows the hourly wage outcomes for participating residents working full- and part-time in the STEM and trades industries after their Measure HH-funded training. Additionally, residents not employed before receiving Measure HH-funded training now earn an average hourly wage of $24.16 in STEM and $23.33 in trades.31
29 These examples are not exhaustive. Measure HH partners collect residents’ employment data individually and in various ways. The pilot program does not require partners to collect or report the data consistently so that data can be cleanly aggregated and reported. 30 Some examples of participants in more mature age categories are featured on JobTrain’s website:
https://www.jobtrainworks.org/meet-our-clients/. Similarly, StreetCode’s Work Innovation Program is open both to people new to work in the technology sector, and to those aiming to “Upgrade [their] Tech Skills in [their] Current Line of Work“ in order to “Land a HigherPayer Job”: https://streetcode.org/wip/ 31 Partners collected pre-program employment data for 81 of 97 participating residents (84%). Pre-program wage data is not available for all participants for whom we have pre-program employment data. However, we know that almost half of these residents were not employed when they started a Measure HH-funded program (Exhibit 7). The available data shows that the post-program average hourly wage of all those previously unemployed is $23.68.

EXHIBIT 8
Post-Program Employment
(n=53)
2%
8%
9%
21%
60%
Employed - At prior job
Not employed
In school
Employed - Part-time
Employed - Full-time
0% 25% 50% 75% 100%
82 Informing Change 10
EXHIBIT 9
Post-Program Average Hourly Wages
(n=49)

EMPLOYMENT STATUS

AFTER MEASURE HH

TRAINING

AVERAGE HOURLY (MEAN) WAGE
STEM Trades Overall
Employed – Full-time $28.29 $25.87 $26.68
Employed – Part-time $21.25 $21.93 $21.68
Employed – At prior job N/A $17.00 $17.00
Overall Average $26.13 $24.47 $25.02
For the Measure HH Pilot Workforce Development Program, the City set a target post-program minimum hourly wage using MIT’s Living Wage Calculator.32 In 2021, the living wage estimate in San Mateo County for a single adult without children was $28 per hour. For 2025, the estimate for the same household type is $34.76. Living wage estimates are calculated based on household size, as discussed later in this report. Measure HH also defines program success as residents earning this target wage no longer than 36 months after completing their training program.

Using the 2021 target of $28 per hour:
• The average hourly wage for participating residents employed full-time after completing their respective programs is 95% of the City’s target wage ($26.68, unadjusted for household size and number of wage earners).
• The average hourly wage for participating residents working full-time in the STEM sector ($28.29) exceeds the City’s unadjusted target wage.
• The average hourly wage for participating residents working full-time in the trades sector is 92% of the City’s unadjusted target wage ($25.80).

Compared to the updated 2025 living wage estimate of $34.26 for a single adult without children, the average hourly wage for participating residents employed full-time after completing their respective programs is 81% of the City’s unadjusted target wage, 77% for those working in STEM, and 74% for those working in the trades.

Employment and wage outcomes are intertwined. Participating residents credit their newly acquired skills and knowledge for supporting their access to new jobs and increased wages. They are optimistic about their future earning potential. Among the participating residents we interviewed, many shared that their hourly wages increased after their training and that they expect to earn even higher wages after they complete more training and obtain additional certifications.

One interviewee, now a union apprentice, is very optimistic about her future earning potential now that she is a union member and on a clear career path. She credits her Measure HH-funded training for supporting her in reaching this point. While involved in this program, she learned about and applied to the union preapprenticeship program. After her first application attempt was unsuccessful, she practiced her interview skills with the leaders of the Measure HH-funded program and was accepted on her second attempt. 32 Living Wage Calculation for San Mateo County, California: https://livingwage.mit.edu/counties/06081. 83 Informing Change 11
“[The Measure HH-funded program] knew I needed a little push, so that's what they did. It helped that they brought in people from [the union] to speak to us … [Measure HH-funded program leaders] don't let go of your hand until you've made it. Even then […] they'll try to make sure that you're okay.”
A second interviewee went from earning $18-$19 to $25 an hour after their training, saying the training “helped a lot to get me to that level” by providing construction experience. This participant plans to pursue an HVAC certificate to increase their earning potential further.

A third interviewee working in the trades shared that his experience finding a job required initiative and early morning drives to dozens of construction sites to job hunt. Thanks to his Measure HH-funded experience, construction portfolio from the program, and received certifications, he secured employment, making an initial $22 an hour with growth potential, $2 more than he was previously making in a field with limited growth potential. Still, he feels the pressure regarding the seasonal nature of non-union construction jobs that aren’t readily available. On the other hand, union jobs are more challenging to secure and have long wait times or require years of apprenticeship and experience.

None of these three interviewees had formal experience in or knowledge of the trades before receiving Measure HH-funded training. These interviewees now earn a higher hourly wage than in their prior jobs, with potential for longer-term stability and growth opportunities.

OTHER BENEFITS FOR PARTICIPATING RESIDENTS
Residents completing Measure HH-funded training experience many benefits beyond employment, including skill and knowledge gains, exposure to different career paths, and increased confidence and motivation to continue growing.
“Reflecting on how my participation in [the Measure HH-funded program] has impacted my outlook: it’s been instrumental in shaping my confidence regarding career growth and income potential. [The program] has provided me with valuable resources, skills, and networking opportunities that expanded my understanding of what’s possible. Learning from peers and mentors in the program has not only improved my technical abilities but reinforced the importance of pursuing sustainable career paths that align with my passions.” Interviewees named industry-specific skills, knowledge, and certifications gained through training as immediately useful for helping their resumes stand out to potential employers. Participating residents experienced career exploration and found career paths that meet their skills, interests, and needs.

Interviewees also reported developing the skills they needed for job application processes, such as creating their resumes, and interviewing practice that helped residents present themselves in a polished and professional manner. Interviewees reported increased confidence and said they now have marketable experience to employers. Going through a Measure HH-funded program inspired some interviewees to pursue certificates to build additional skills and increase wages. 84 Informing Change 12

FACTORS SUPPORTING & INHIBITING OUTCOMES
“[The Measure HH-funded program] offers students or people like me the opportunity to see that there is other work. We just have to know where it is or where to look.”
Five key factors supporting resident success in Measure HH-funded programs emerged through our evaluation:

1. The pilot effectively removes financial barriers to access. When asked if they would consider other job-training programs or why they were attracted to those funded by Measure HH, many interviewees noted that the free nature of these programs was a significant factor in their decision.

2. Partners foster welcoming and encouraging environments with high-quality staff and educators who promote learning, community connection, and confidence-building. Interviewees described how the trainers and teachers, whom they characterized as knowledgeable and compassionate, created nurturing learning environments where residents feel safe and encouraged to explore career paths.

Interviewees also appreciated the programs' efforts to connect residents with trainers, such as offering meals, checking in regularly, and providing open office hours.

3. Partners offer multiple program modalities to appeal to different needs and learning styles. During our interviews, we heard two distinct perspectives: one interviewee preferred self-guided programming with only occasional in-person meetings, while another preferred a more structured environment where all participating residents attended the same course and received instruction simultaneously. Providing a variety of program formats can help meet the preferences and scheduling needs of EPA’s diverse community members.

4. All three Measure HH partners offer different career counseling approaches to help participating residents determine a pathway aligned with their interests and goals. Interviewees learned about potential pathways to start and grow their careers (e.g., union and non-union options in construction, plumbing, electrical, other trades, property management, cybersecurity, entrepreneurship, and pursuing additional certifications to increase income). StreetCode offers “exposureships” during which tech company representatives meet participating residents to give them a sense of whether they might like to work in a specific job, field, or profession. At JobTrain’s Project Build, the program instructor provides insight into different trades pathways, the pros and cons of joining unions, and entrepreneurship. Live In Peace emphasizes helping youth find the right career path rather than rushing them into a particular trajectory, reporting, "We are working with individuals as they figure out their career paths, which is what Live In Peace does best.” They acknowledge that from the outside, “this can look like a slow process” and that one common challenge of working with youth is that “they aren’t sure what career path they want to follow yet.”33

5. Besides job training services, Measure HH partners offer wraparound supports and services to address residents’ holistic needs and encourage program completion. Interviewees were often aware of the available services and resources. Several discussed utilizing services to facilitate travel to and from job training programs, access necessary technology for learning, connect with other residents and community members during meals, and address their most pressing needs. For instance, legal services were critical to one interviewee who received assistance resolving a legal issue during a background 33 From “Measure HH Grant - Quarterly Report, Q3, January 31, 2024” by Live In Peace, Inc:
https://www.cityofepa.org/sites/default/files/fileattachments/community_amp_economic_development/page/22178/live_in_peace_quarte rly_report_january_2024_redacted.pdf
85 Informing Change 13
check. In their quarterly reports, partners reported that they provide the wraparound supports to EPA residents (Exhibit 10) and all of their job-training participants to address barriers to program outcomes and completion, including navigating legal issues and the legal system, experiencing divorce, addressing mental health challenges, being flagged during a background check, etc. Interviewees expressed a desire for more legal services and mental health support.

EXHIBIT 10
Wraparound Supports Provided by Measure HH Partners

JOBTRAIN LIVE IN PEACE STREETCODE ACADEMY
• Help with government benefits
applications (e.g., CalFresh, MediCal, WIC, disability insurance) • Legal services
• Onsite preschool for children ages
3-5 (sliding scale based on income)
• A job center and student lounge
• Transportation assistance
• Tutoring and academic assistance
(e.g., GED support)
• Access to an alumni network
• Beginning and Intermediate English
classes for non-native speakers
• Spanish-language basic computer
skills courses
• Necessary prerequisites for training
programs, such as driver’s licenses,
stable housing, and transportation,
and tutoring for exams/tests
• Tutoring, life coaching, career
counseling
• Scholarships and stipends
• Daycare
• Mental health support
• Supplies
• Connecting local innovators-inresidence with dedicated career coaches
• Shadowship opportunities in diverse
corporate environments
• Transportation assistance
• Childcare assistance
• Free loaned tech devices
• Community building opportunities
“Participating in [the training] has opened my eyes to community.

There are actually people and programs that actually care for and provide opportunities for people in the community … I believe [the training] provides the tools and opportunities to achieve greater income and greater opportunities to achieve more income.” The residents we spoke to acknowledged that many factors influence their ability to secure jobs with a living wage. While they are generally hopeful that their experience in the Measure HH-funded programs— including training, certifications, and career exposure—will help them in the long run, they observe a competitive job market that requires a lot of individual initiative. For some, personal challenges, sometimes sensitive in nature, can introduce challenges to employment.

Residents build important skills and gain necessary experience to apply for STEM and trades jobs. However, the pilot does not guarantee employment or paid internships following program completion, which can create an earnings gap that is difficult for participating residents to navigate. Interviewees identified a handful of additional contextual factors that impeded prompt access to employment opportunities. Interviewees described:
• A general economic downturn during interviews in winter 2025, which City Council also discussed in fall 2024, affected both the STEM and trades sectors. Tech company layoffs around a similar timeframe mean more workers compete for fewer opportunities. 86 Informing Change 14
• Trades jobs follow a seasonal calendar. Residents may complete their training during a time with fewer job opportunities.
• STEM jobs with fixed wages and predictable career paths may be declining, as interviewees, partners, and subcommittee members see the sector shifting toward freelancing and gig work and increasing its reliance on artificial intelligence (AI).
• Applicants interested in trade unions face long waits to join a union.

Residents described challenges landing their first entry-level job, especially in STEM fields. One interviewee working in STEM described challenges securing good IT jobs because they often require prior experience, which is difficult to obtain for entry-level positions. Residents saw the most success related to employment when the Measure HH program partner directly connected them to a potential employer. “It’s that Catch-22 problem. [Employers] won’t take you because you don’t have experience, and you can’t get experience because they won’t take you.”
“I looked into getting into the trades. A lot of the places that hire for the trades require you to have experience right off the bat …. They said that the easiest way to get experience would be a pre-apprenticeship, which was [the Measure HH-funded program].”
87 Informing Change 15
Discussion & Recommendations
Although the Measure HH Pilot Workforce Development Program is achieving many of its desired outcomes, there is room for growth as it moves into its next pilot phase. We offer the following recommendations for the program’s ongoing evolution based on the evaluation data and findings. “Before the [training], my feelings towards IT were, ‘Oh, that could never be me.’ You have to grow up playing with or loving tech, and that wasn't my experience. I was always told, ‘Don't touch the computer.’ That was my feeling towards technology. ‘Don't break that, don't touch that.’ When I went the IT route, I still struggled with those feelings because … it's burned into my memory. It's very empowering to be in this field, and that's ultimately what I want to do and where I want to be.”

1. IMPROVING ACCESS TO EMPLOYMENT OPPORTUNITIES
A key goal of the voter-approved Measure HH is to facilitate access to job opportunities for city residents, particularly considering the recent influx of large employers. Our findings and discussions with partners, City staff, and local employers highlighted the need to strengthen employer engagement to achieve this goal. Multiple ways exist for Measure HH funds and resources to expand EPA residents' access to job opportunities.

Recommendation 1.1: The City of East Palo Alto can do more to boost the visibility of this program among local employers and increase employer buy-in.

Interviewees, partners, and City Council subcommittee members discussed how finding employment is often heavily relational, based on connections, familiarity, and having the necessary skills and qualifications. Measure HH partners have relationships with local employers and regularly connect their training participants and employers, and at least one partner convenes a local employer advisory group that offers insights into the local employment landscape and collaborates with employers to create and update curricula to ensure programs promote industry standards. Another partner collaborates with local employers to provide participants with exposureships. Employers we interviewed were often unaware of the Measure HH pilot, indicating a potential opportunity for the City to raise the program’s profile and connect partner organizations and residents to local employers.

Partners frequently expressed their desire for the City to support connections and networking with employers.

One partner expressed that the City Council can send a powerful message to employers by elevating EPA’s local talent. Our field research suggests employer engagement is critical to supporting positive outcomes via job training programs. The City has the opportunity to engage employers directly via the pilot and through Measure HH-funded partners. Appendix C includes practices for partnering with employers that support positive outcomes via job training programs.

The City could also explore convening potential employers and residents for peer connection and networking opportunities. City staff could facilitate these networks or provide funding to partners via a revised RFP to propose how they could support coordination with employers. 88 Informing Change 16
Recommendation 1.2: Support an apprenticeship model or paid internships with local employers to expand access to job opportunities.

Our research of other WFD programs showed that many successful programs offer direct access to apprenticeship and internship opportunities as a benefit of completing the training. Both apprenticeships and internships can lead to long-term employment. Apprenti34 offers paid tech apprenticeships that allow participants to learn while working and earning an income. Employers are asked to have a job ready for apprentices, as long as the apprentice demonstrates growth and can perform the job duties after completing the apprenticeship. Year Up United guarantees an internship with a corporate partner for its participants as part of their programming; relatedly, 80% of Year Up United graduates are employed within four months of completing the program.35 The City or county could leverage relationships to offer internships and forge new relationships with private companies’ talent acquisition specialists to effectively build potential inroads. Directly supporting apprenticeships and internships, in addition to sector-specific technical skills, can expand the potential to support EPA residents. Entrepreneurial training would also provide a new avenue, and could be enhanced by mentorship and networking with other entrepreneurs. Any of these approaches would require the City to consider new approaches to funding training (e.g., how to fund internships and apprenticeships with business or organizations).

Recommendation 1.3: Maximize first-source hiring practices for city-funded projects and make direct connections for residents pursuing Measure HH-funded training.

The City adopted a first-source hiring ordinance alongside the Measure HH parcel tax to expand employment opportunities for residents.36 However, there have been fewer opportunities than hoped to implement the policy. The City might consider improving the implementation of the first-source hiring policy for City-funded projects by actively facilitating partnerships between residents and contractors. Partners believe the City Council can be instrumental in connecting residents to these job opportunities by promoting residents’ talent.

Recommendation 1.4: Maximize relationships between unions and programs funded through Measure HH.

Unions may be able to prioritize membership opportunities for graduates of local training programs. Exploring this avenue could provide several program graduates with access to union membership and guaranteed wages.

Foothill College also offers a trades apprenticeship program connected to California unions, which could serve as another pathway to skill-building and employment.37

2. SUSTAINING & STRENGTHENING MEASURE HH PILOT

WORKFORCE DEVELOPMENT PROGRAM APPROACHES
Although many residents may have the requisite skills for entry-level and higher-level job openings with EPA employers, others will benefit from access to job training, career readiness, and career exposure opportunities.

Successful career readiness and job training programs are grounded in relationship building, community building, career counseling, and career exploration. Multiple ways exist for Measure HH funds and resources to sustain and strengthen WFD approaches and outcomes for EPA residents. 34 https://apprenticareers.org/ 35 Year Up United. Student FAQs. Retrieved May 1, 2025 from https://www.yearup.org/students/student-faqs#module-6 36 City of East Palo Alto California. First Source Hiring Ordinance. Retrieved May 1, 2025 from https://www.ci.east-paloalto.ca.us/econdev/page/first-source-hiring-ordinance. 37 https://foothill.edu/apprenticeships/ 89 Informing Change 17
Recommendation 2.1: Continue funding programs that provide work-ready skill development and wraparound supports, and expand funding to account for recruitment costs and costs associated with matching residents to programs and opportunities best aligned with their skills and interests.

EPA residents in Measure HH-funded programs have various needs and face challenges in their daily lives, affecting their ability to complete training and access jobs. Wraparound supports, including (but not limited to) legal resources, resume building, and interview practice, help residents address these needs and their overall well-being, and support their ability to complete job training, build confidence, and access jobs. Wraparound supports and work-ready skill development are common among workforce development programs, and something Measure HH should continue to help residents achieve employment goals.

Partners also discussed the administrative efforts needed to recruit and match participants to the program and pathway that would best support participant goals. Upfront funding could help partners cover these administrative and marketing costs to reach residents and employers alike.

Recommendation 2.2: Fund more Spanish-language and multilingual training to reach East Palo Alto’s majority Spanish-speaking population.

Partners currently offer a few opportunities for Spanish-speakers in Spanish (e.g., JobTrain hosts Spanishlanguage computing classes, and StreetCode expanded its offerings to include a Spanish-language course) or for residents to improve their English literacy (e.g., JobTrain). Consider how Measure HH can further support this population by funding Spanish-language classes and training.

Councilmembers and program staff discussed the importance of offering programming in multiple languages with us. They reflected that multilingualism is a marketable skill in fields relevant to the Measure HH pilot and may open access to additional employment and advancement opportunities.

Our research provides insight into multiple options for English Language Learners (ELLs). For example, organizations and community colleges provide bilingual training or training for ELLs geared toward specific learning or career pathways.
• GOAL (Growing Opportunities in America for Latinos) (Indianapolis, IN)38 is a bilingual English/Spanish manufacturing bridge program for adults. Run by the Labor Institute for Training, which secured $3.2 million in Department of Labor funding through the TechHire Grant in 2016, the program aims to grow advanced manufacturing technical skills for residents with limited English proficiency. It offers free credentialling in Safety, Quality Practices and Measurement, Manufacturing Processes and Production, and Maintenance Awareness.
• The Spanish American Committee for a Better Community (Cleveland, OH) offers bilingual jobreadiness and soft skills training through their workforce development program. The organization hosts a 6-week bilingual (English-Spanish) construction course, the Latino Construction Program, which provides bilingual training for Spanish speakers to help them overcome language barriers and earn a free Occupational Safety and Health Administration (OSHA) certification. • Foothill College (Los Altos Hills, CA) offers multiple ESL pathways, including bridges to college and mathematics, and advanced offerings39 which can help ELLs advance through Foothill’s STEM and other career pathways. 40
38 Joy, L, Toglia, J. 2020. Growing Opportunities in Manufacturing through Bilingual Upskilling. Jobs for the Future. Retrieved June 1, 2025 from https://www.jff.org/idea/growing-opportunities-manufacturing-through-bilingual-upskilling/. 39 https://www.foothill.edu/esl/ 40 https://foothill.programmapper.com/academics/interest-clusters/1caa9223-79ad-4e43-817c-6d06e629a41f 90 Informing Change 18
California-based organizations and community colleges also offer ESL classes emphasizing general English language acquisition, computer skills, and workforce preparation:
• City College of San Francisco offers a one-year SL Vocational Office Training Program41 to help students develop computer skills, build skills needed to start and boost careers, and enhance English skills. While not specific to STEM or trades, it helps ELLs learn current technology and prepare for jobs. • North Orange Continuing Education (Anaheim) provides an example of offering language development and workforce preparation that provides English Language Learners with the skills to get a job and move into higher-wage jobs faster.42
Recommendation 2.3: Apply an expansive definition of STEM training and jobs to the Measure HH Pilot Workforce Development Program and fund multiple pathways to access STEM training.

We heard from partners and participating residents that their successes are expansive and include entrepreneurship within STEM or jobs requiring STEM knowledge, even if they do not work directly in a STEM field. The US Bureau of Labor Statistics notes many definitions of what can be considered a STEM occupation.43 Job search website Indeed notes that STEM fields continue evolving and expanding.44 Applying a broad definition of STEM to Measure HH will allow EPA residents to pursue a pathway to STEM-related employment that best fits their skills and interests.

Sensemaking session participants suggested shifting Measure HH funding to support community college scholarships for intensive tech training would offer an additional avenue for residents to develop and expand their skills for tech-based jobs.

Recommendation 2.4: Support collaboration across partners.

Partners shared that while they coordinate informally, Measure HH could support their formal collaboration to ensure residents are paired with a best-fit job training program. Collaboration across the three pilot contractors could also help connect residents to wraparound supports, increasing eligibility for services from any Measure HH-funded programs that meet individual residents’ needs.

3. MONITORING WAGES & OTHER OUTCOMES
The final evaluation goal is to inform the East Palo Alto City Council about evaluating future wage outcomes and the potential for wage growth.45 Leveraging our experience and drawing on field research and partner reflections, we compiled promising practices supporting data collection and analysis related to wages among multiple organizations. We provide reflections on how the Measure HH Pilot Workforce Development Program can enhance practices that City staff have already implemented. 41 https://www.ccsf.edu/degrees-certificates/esl-vocational-office-training-program 42 https://www.noce.edu/programs/english-citizenship/english/ 43 The US Bureau of Labor Statistics (BLS) uses varying definitions of STEM across publications. One source defines STEM occupations as “computer and mathematical, architecture and engineering, and life and physical science occupations, as well as managerial and postsecondary teaching occupations related to these functional areas and sales occupations requiring scientific or technical knowledge at the postsecondary level.” A second report separates STEM occupations into two major domains, each with two sub-domains. 44 Indeed. (2024) What Are Stem Fields? Retrieved June 1 2025, from https://www.indeed.com/career-advice/career-development/stemfields. 45 Forecasting expected or potential wages by sector or individual was not an expectation of the current contract or Evaluation plan.

Should City Council be interested in this type of forecast, we recommend issuing an RFP and contracting with a firm specialized in that. 91 Informing Change 19
Recommendation 3.1: Enhance the City’s already established data reporting requirements by accounting for varied data capacity amongst partners and the need for standardized data reporting.

The City could improve the data process by providing partners with an easy-to-use reporting template/database (e.g., via Excel, Microsoft Forms). A shared tool will provide partners with greater clarity about how information should be reported, yielding clearer information and analysis via consistent reporting. While the City currently lacks a centralized grants reporting database, it may wish to consider implementing one as part of its ongoing technological improvements.

Recommendation 3.2: Prepare for and fund longitudinal assessments that clearly define a process and align with analysis goals.

Exploring long-term wage growth requires gathering wage data at multiple periods and over time (e.g., 6, 12, 24, and 36 months after training). Setting these goals in advance and informing partners about the frequency is important for defining expectations and collecting consistent data. In one evaluation, WFD programs provided employment services to participants for up to 12 months following program completion or job placement, allowing for regular data updates.46 One study determined that three years post-program are needed for impact to materialize.47 Measure HH partners are not funded to support participant residents over time or track outcomes long-term, though they are expected to do so as part of their Measure HH funding agreements. Our experience evaluating similar WFD programs and alumni networks shows that it takes considerable time to maintain connections with alumni; the longer alumni have been out of a program, the harder it is to reach them.

Measure HH funding could be directed to support these long-term efforts.

Recommendation 3.3: The City can enhance established data measures to align with Measure HH’s goals and partners’ program objectives.

One study suggested program completion, job placement, employment retention, and starting wages as “standard measures of workforce development success.”48 These measures are included in Measure HH reporting. However, the program’s approach could improve by including data about confounding factors, covariates, and correlates to wages, and allowing for variation among partners that wished for additional data collection measures to show interim progress toward employment goals (i.e., partners differentiated progress based on a client’s barriers to employment). Measure HH partners currently provide select personal background information—employment and wage histories, racial/ethnic and language backgrounds, and highest level of education—that can have differential impacts on estimates of wages and wage growth, thus informing the analysis. Additional measures—prior employment sector, occupation, and position—must be gathered and stored alongside wage information for the most robust analysis.

Recommendation 3.4: Fund a staff position to coordinate data sharing and analysis, including establishing formal data-sharing agreements.

Data collection, reporting, and analysis are time-intensive and require a specific skill set. A role dedicated to this process can help ensure data accuracy and integrity and a smooth process for contractors. 46 Juniper, C., Boswell, T., & Cumpton, G. (2023). An Evaluation of the City of Austin Investments in Workforce Development. The University of Texas at Austin Lyndon B. Johnson School of Public Affairs. Retrieved from https://sites.utexas.edu/raymarshallcenter/files/2024/07/FINAL_City-of-Austin-Rpt_12-15-2023.pdf. 47 Rothstein, J., Santillano, R., Von Wachter, T., Khan, W., & Yang, M. (2022). CAAL-Skills: Study of Workforce Training Programs in California. California Policy Lab. Retrieved from https://cwdb.ca.gov/wp-content/uploads/sites/43/2022/08/FINAL-CAALSkills_report_ACCESSIBLE.pdf. 48 Weigensberg, E., Schlecht, C., Laken, F., Goerge, R., Stagner, M., Ballard, P., & DeCoursey, J. (2012). Inside the Black Box: What Makes Workforce Development Programs Successful? Chicago: Chapin Hall at the University of Chicago. https://www.researchgate.net/publication/265083339
92 Informing Change 20
Contracts between the lead organization (the City of East Palo Alto, in the case of the pilot) and program partners should include formal data-sharing commitments to ensure data safety. Data collection should reflect data that organizations already collect and use for meaning-making or to demonstrate impact, which can increase partner buy-in. It should also reflect sensitivity to residents participating in Measure HH programs and respect their privacy by allowing them to opt out of data collection partially or entirely.

Recommendation 3.5: Be attentive to the increasing cost of living and living wage standards. Consider that it may take longer than initially hoped to earn at the increasing rate.

San Mateo County's living wage has increased since residents voted on Measure HH; the figure also varies by household makeup, considering the number of children and working adults in a household (Exhibit 11).

Sensemaking participants highlighted that the cost of living will only continue increasing and emphasized that residents who access new jobs after Measure HH-funded training may not immediately earn at the City’s target.

Long-term tracking is necessary to understand growth toward earning a wage aligned with the City’s target.

EXHIBIT 11
2025 San Mateo County Hourly Living Wave based on Household Makeup49 NO CHILDREN 1 CHILD 2 CHILDREN 3 CHILDREN
1 adult $34.76 $67.89 $89.18 $114.70
2 adults
(1 working) $47.81 $58.01 $62.66 $73.98
2 adults
(2 working) $23.90 $36.16 $46.95 $59.28

CONCLUSION & LOOKING FORWARD
In its initial pilot phase, the Measure HH Pilot Workforce Development Program’s partners improved access to employment opportunities, including those in STEM and trades, via training, wraparound support, and attending to well-being for East Palo Alto residents. There is an opportunity for the City to continue offering funding within this current structure and simultaneously expand its approach to include different strategies to achieve similar goals (e.g., connecting with employers, pre-apprentice programs, scholarships).

As we conclude this evaluation, we encourage City staff and Councilmembers to answer the following questions as they coordinate the pilot’s next phase:
• How can City Council and City staff elevate Measure HH’s profile amongst potential employers and champion EPA residents?
• What types of jobs in STEM and trades align with City Councilmembers' expectations of programmatic outcomes? How do those expectations align with or diverge from the job landscape and the jobs residents are seeking and securing after attending Measure HH-funded training? • What measures or metrics are most helpful to City staff and City Councilmembers as they assess program results and make decisions for the future? What measures or metrics are important to partners? What needs to shift to collect and synthesize these measures or metrics regularly? 49 Supra, note 32.
93 Informing Change 21
We greatly appreciate the City Council’s commitment to building the Measure HH Workforce Development Program to meet the needs and aspirations of East Palo Alto residents, and their openness to adapting the program based on evaluation and learning.
94 Informing Change A1
Appendix A: Evaluation Questions
This report addresses the following four evaluation questions we developed with input from the City Council evaluation subcommittee and City staff to address the evaluation goals. In some instances, findings relate to multiple evaluation questions or goals.

1. Outcomes: What are the initial outcomes of the Measure HH Pilot Workforce Development Program? What supports and barriers drive and impede progress toward achieving programmatic outcomes? (Goals 1, 2, 3)

2. Resources & Implementation: How are Measure HH resources being used to support local workforce development? What are we learning about what it takes to implement and expand this work? (Goals 1, 2)

3. Field Learning: What can be learned from other programs similar to the Measure HH Pilot Workforce Development Program? (Goal 2)

4. Wage Mobility: What is important to consider in understanding the potential for longer-term career and wage growth related to the Measure HH Pilot Workforce Development Program? (Goal 3) 95 Informing Change B1
Appendix B: Measures of Interest
The East Palo Alto City Council asked Informing Change to report on 40 measures of interest, listed here by evaluation question for reference. We used the measures as a guide while developing data collection tools. The measures are not exhaustive, and we did not expect to collect consistent data about each measure. Instead, the measures organized the learning priorities discussed during background interviews and planning conversations and uplifted key Measure HH staff, partners, and City councilmembers' perspectives. These measures also reflect the spheres of influence closest to Measure HH and the Pilot Workforce Development Program (primarily participating residents and Measure HH partners).

EVALUATION QUESTION 1 (OUTCOMES)
Specific interest in the following measures for
individuals:

Specific interest in the following
measures for contractors:
• Skill and knowledge acquisition; trade/field competency/proficiency • Certificates or other formal training completed
• Preparedness for available jobs
• Awareness of and access to employment opportunities in tech or trades (such as related fields following program completion) • Number and type of jobs, internships, and apprenticeships obtained • Sustainability of employment opportunities (jobs with a living wage, defined as a minimum of $28/hour for a single individual) • Wages after program completion
• Wages at 6, 12, 18, and 24 months after program completion • Area of residence (such as within the City of East Palo Alto, outside the City of East Palo Alto but within California, outside California) • Feeling of belonging in tech or trades
• Feeling of belonging in East Palo Alto and Silicon Valley • Improved overall well-being
• Conditions that drive or inhibit outcomes
• Diversity of and increase in student enrollment
• Access to funding and contribution to
organizational stability
• Staff capacity and responsiveness to serve
East Palo Alto residents (such as for multilingual service provision) • Employer-trainer engagement and
collaboration
• Partnerships with employers
• Conditions that drive or inhibit outcomes
• Others identified during the evaluation
EVALUATION QUESTION 2 (RESOURCES & IMPLEMENTATION)
• Number of student placements funded through Measure HH • Program completion rates
• Characteristics and prior experiences of students (e.g., gender, age, race/ethnicity, level of education, prior employment experience, involvement in the foster system or justice system, language situation/languages spoken) • Supports contractors provide to students
• Program cost
• Type and benefit of referrals or references contractors provide for students • Measure HH funding structure, related strengths, and limitations 96 Informing Change B2
EVALUATION QUESTION 3 (FIELD LEARNING)
• Program costs
• Funding sources
• Range of supports and approaches provided, from workforce development programs or employers • Challenges and how they are addressed
• Program results and outcomes
• Conditions that support or inhibit participant success or employee success once hired (such as competition in the tech field)
• Market conditions that support or inhibit participant success • Forecast of future job landscape and required skills to access those jobs, including market strength and opportunities in STEM compared to building trades
• Current/projected wage levels for different jobs in tech and trades sectors EVALUATION QUESTION 4 (WAGE MOBILITY)
• Wages prior to program participation (if employed)
• What compels or inhibits employers from providing a living wage • Skills, roles, etc., associated with wage growth and mobility • Conditions within the tech and trades sector that support or inhibit wage or career growth 97 Informing Change C1
Appendix C: Landscape Scan

PROMISING PRACTICES
Through our field research and experience, we offer promising practices for implementing workforce development programs. Other findings related to collecting data from a portfolio of organizations are incorporated throughout the report.

For Supporting Workforce Development Outcomes
• Clearly define the participant audience to match individuals with opportunities aligned with their skill levels and interests.
• Conduct intake assessments to identify participant knowledge, skill, commitment level, and any support services needed.
• Focus training on industry-relevant certifications and skills, including those in demand by target industries in the region.
• Provide soft skills and job readiness skill development. • Provide financial compensation for program participation and completion to encourage participants to stay in training and help reduce financial burden.
• Offer wraparound services to address multifaceted needs. • Support career navigation to bridge the gap between skill-building and job placement, such as, but not limited to, apprenticeships, guaranteed internships, and other connections to employers. • Build alumni networks that create formalized ways for peers to connect during the program and after.

For Partnering with Employers
• Seek committed partners willing to be involved in different stages of the program, such as participating in advisory boards or giving feedback on the curriculum. • Work with employers to identify pre- and post-program participant attributes or skill sets.

Communicate these attributes with partners for effective outreach. Employers in other programs have expressed concerns about participant preparedness for on-site activities. A comprehensive intake assessment and communication of participant backgrounds can prevent unmet expectations. • Create a clear definition of employers' responsibilities and encourage upfront hiring commitments. • Advocate and communicate with employers on the benefits of WFD programs. A 2021 economic policy proposal by the Hamilton Project emphasized that WFD focusing on disadvantaged groups, especially after the COVID-19 pandemic, is cost-effective for employers in building a stronger worker 98 Informing Change C2
base.50 Another article noted the benefit of regional workforce partnerships and local collaboration, in which local employers could recognize they face the same hiring issues and focus on strengthening regional talent pools and pathways.51

SOURCES
We reviewed the following sources to conduct the landscape scan for this evaluation.

1. Apply to Train for a Career in Technology: OEWD’s TechSF Program. City and County of San Francisco. (n.d.). https://www.sf.gov/apply-train-career-technology

2. English, B., Zelenack, S., & Bellotti, J. (2022). Employer Perspectives on Regional Workforce Partnerships:

Lessons from America’s Promise. Princeton, NJ: Mathematica. https://www.mathematica.org/publications/employer-perspectives-on-regional-workforcepartnerships

3. Harvey, D., Bogle, M., & Girod, K. (2024). Equitable Workforce Development in Disinvested Places: Lessons from the Five-City Equitable Development Workforce Pilot (Year Three Evaluation Report). Urban Institute. Retrieved from https://www.urban.org/sites/default/files/2024-11/Equitable-WorkforceDevelopment-in-Disinvested-Places.pdf

4. Holzer, H. J. (2021). After COVID-19: Building a More Coherent and Effective Workforce Development System in the United States. The Hamilton Project. https://www.hamiltonproject.org/wpcontent/uploads/2022/11/Holzer_LO_v5_1-2.pdf

5. Job Training in the Bay Area. Year Up United. (n.d.). https://www.yearup.org/locations/ca-san-jose

6. Johnson, M., Bashay, M., & Bergson-Shilcock, A. (2019). The Roadmap for Racial Equity: An Imperative for Workforce Development Advocates. National Skills Coalition. https://files.eric.ed.gov/fulltext/ED603236.pdf

7. Juniper, C., Boswell, T., & Cumpton, G. (2023). An Evaluation of the City of Austin Investments in Workforce Development. The University of Texas at Austin Lyndon B. Johnson School of Public Affairs. https://sites.utexas.edu/raymarshallcenter/files/2024/07/FINAL_City-of-Austin-Rpt_12-15-2023.pdf

8. Rothstein, J., Santillano, R., Von Wachter, T., Khan, W., & Yang, M. (2022). CAAL-Skills: Study of Workforce Training Programs in California. California Policy Lab. https://cwdb.ca.gov/wpcontent/uploads/sites/43/2022/08/FINAL-CAAL-Skills_report_ACCESSIBLE.pdf

9. Weigensberg, E., Schlecht, C., Laken, F., Goerge, R., Stagner, M., Ballard, P., & DeCoursey, J. (2012). Inside the Black Box: What Makes Workforce Development Programs Successful? Chicago: Chapin Hall at the University of Chicago. https://www.researchgate.net/publication/265083339 50 Holzer, H. J. (2021). After COVID-19: Building a More Coherent and Effective Workforce Development System in the United States. The Hamilton Project. Retrieved from https://www.hamiltonproject.org/wp-content/uploads/2022/11/Holzer_LO_v5_1-2.pdf. 51 English, B., Zelenack, S., & Bellotti, J. (2022). Employer Perspectives on Regional Workforce Partnerships: Lessons from America’s Promise. Princeton, NJ: Mathematica. Retrieved from https://www.mathematica.org/publications/employer-perspectives-on-regionalworkforce-partnerships. 99 Informing Change C3

LANDSCAPE SCAN PROGRAMS FOR REFERENCE
Evaluation resources allowed for a preliminary field scan of workforce development programs inside and outside the Bay Area. We sought examples in two main categories:

1. Programs with a similar focus to Measure HH, primarily related to the population reached or technical field (i.e., STEM and trades).

2. Programs that offer pathways different from Measure HH (e.g., apprenticeships).

Our scope was limited to desk research, including publicly available information found online. Few organizations we researched provide outcome or evaluation-related information on their websites (e.g., completion rates, placement rates, wages). We provide what little data organizations have made available publicly.

Ultimately, these organizations share numerous promising practices for workforce development programs:
• Paid training opportunities
• Connecting trainees to employers via networking, internship, or apprenticeship opportunities • Wraparound support to address basic needs and overall wellbeing • Matching trainees to trainings, programs, or apprenticeships aligned with their skills and interests • No cost to trainees
• Tailored job training and career readiness training (e.g., resume building, interview practice), and career exploration/coaching
Examples of General Workforce Development Programs Outside the Bay Area
We offer brief summaries of a selection of WFD programs outside the Bay Area that provide free, hands-on training to adults. Select trainings provide payment to trainees. Wraparound supports provide trainees with resources to meet their basic needs and enhance their overall well-being. • Inspiration Kitchens (Chicago, IL) provides free hands-on culinary and food service training for lowincome adults. The program provides additional services to help participants overcome barriers such as resume assistance, job search and placement support, and paid training. • Instituto del Progreso Latino (Chicago, IL) provides career pathways training for Chicago’s Latino community. Training focus ranges, with opportunity for vocational ESL instruction, college prerequisites, digital literacy, and general support to advance their careers and increase pay. Instituto offers a specific healthcare career pathway, enabling students to become Basic Nursing Assistants and supporting tuition and other support to earn additional credentials to advance their careers. The program provides additional wraparound support to help students and their families meet their basic needs and support their overall well-being (e.g., applying for Medicaid/Medicare, SNAP, unemployment, childcare services).
• JARC (Chicago, Baltimore, Philadelphia, Providence) provides free manufacturing-related training for low-income adults. Participants can be trained in CNC Machinist, Welding, Mechanical Assembly, and 3D printing. Trainees in Chicago receive a monthly stipend. JARC also offers bilingual training in Spanish and English, a bridge program to help trainees complete coursework to prepare them for manufacturing jobs, financial coaching, public benefits registration, transportation stipends, and resources for food, childcare, and housing. JARC shares that 80% of trainees found a job after or while in training, and 64% of JARC grads double their salary in their first year of employment after graduating. 100
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Examples of Apprenticeship Programs
• Apprenti (based in Issaquah, WA, with national reach) is a free tech apprenticeship for adults across the US. Applicants must pass a competency test and receive 40 hours of weekly training once accepted. After completing their technical training, apprentices transition into their on-the-job apprentice positions with a hiring partner. Apprenti asks that hiring partners have full-time positions available for each apprentice they take on, but do not require employers to retain graduated apprentices. Apprenti offers training and opportunities in a range of tech occupations, including software and web development, IT infrastructure and support, business operations and support, cybersecurity, business and data analysis, and other specialized roles. Apprenti shares that they have placed 4,500+ apprentices in living wage jobs across the US and 89% of graduates are retained by their employer. • Foothill College (Los Altos Hills, CA) offers a trade apprenticeship program through local union training offices. Foothill offerings are free to apprenticeship students. Apprentices earn income while learning from a master journeyman and attend Foothill courses up to two nights a week. Apprentices must be over 18 and hold a high school diploma or GED and valid CA driver’s license.

Examples of Workforce Development Programs Run or Supported by City/County Workforce Development Offices & Boards
• Work2Future (with locations in San José, North San José, and Gilroy and also serving Campbell, Morgan Hill, Saratoga, Los Gatos, Los Altos Hills, Monte Sereno and unincorporated areas of Santa Clara County) is part of the America’s Job Centers of California network of federally funded job centers and supported by the Silicon Valley Workforce Development Board. Work2Future provides free job training, workshops, and apprenticeships, as well as offerings in digital literacy, resume development, job search support, interview support, and other job training skills. Currently, Work2Future offers a trades program, through which 80% of graduates go on to employment or admission into an apprenticeship program, and a PG&E PowerPathway entry to an Electrical Operations program, after which 87% of graduates are employed in the construction-utility industry. Paid apprenticeships are available with select partner companies such as Applied Materials, Enablence, Infinera, and Western Digital. • East Bay Works is also part of the America’s Job Centers of California network and is supported by city and county WFD boards for employers and job seekers. It offers a range of self-directed (e.g., job search workshops and computer classes) and staff-assisted services (e.g., 1-1 career counseling, skills assessment, job training, on-the-job training, job placement, workshops, networking, and skills certification). Offerings are available at no cost to job seekers. Job readiness training includes digital literacy, typing certification, drop-in support, resume review, interview workshop, and more. Training opportunities are available for office career training, certified nursing assistant training, and medical assistant training.
• The San Francisco Office of Economic and Workforce Development (OEWD) funds the TECH SF Program, which offers free tech training through eight local tech organizations. Each organization has its own key audience (e.g., all adults, youth ages 17-24, formerly incarcerated adults, immigrants and refugees with a bachelor’s degree). Training focus varies by program (e.g., digital marketing, producing/editing, Google IT certificate training, career exploration and readiness, web design and coding), as does post-program access to career pathways (e.g., mentorship, apprenticeships). OEWD also supports the TechSF apprenticeship opportunity, connecting employers to pre-screened, trained candidates. Tech training providers for the 2024-2025 grant year include BAVC Media, Dev/Mission, Five Keys, Goodwill Comprehensive Job Center, Jewish Vocational Services, MEDA, MissionBit, and Upwardly Global.
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• Regional Occupation Programs, such as Eden Area ROP (Hayward, CA) and Mission Valley ROP (Fremont, CA), offer career preparation courses for adults. Eden Area ROP offers multiple careerpreparation courses for adults. Current offerings include dental assisting and apprenticeship, direct support professionals, electrical training, medical assisting, and welding. Mission Valley offers a pharmacy technician program. Students pay to attend the courses of their choosing. Some ROPs have scholarship opportunities. ROPs do not offer job placement services. 102
360 22nd Street
, Suite 730
Oakland, CA 94612
510.665.6100
[email protected]
informingchange.com
103

CITY OF EAST PALO ALTO

COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
1960 Tate Street, East Palo Alto, CA 94303
Email: [email protected] • Phone: (650) 853-3189

REQUEST FOR PROPOSALS (RFP)
Measure HH
Workforce Development Programs
Date Released: Monday, July 20, 2026
Deadline: Monday September 14, 2026 at 12pm (noon)
Section I Overview
Section II Background
Section III Scope of Work
Section IV Key Items to Address In Response
Section V Selection Criteria
Section VI Submittal and Review Process
Section VII Additional Disclosures and Requirements
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I. OVERVIEW
The City of East Palo Alto requests proposals from qualified agencies and organizations to provide job training and workforce program development services to East Palo Alto residents in the STEM (science, technology, engineering, and mathematics) and building trades fields. This Request for Proposals (RFP) is based on the City’s desire to fulfill the intent of Measure HH, a tax approved by voters in November 2018, expected to generate $1.7 million annually. The proposed training programs should demonstrate: a clear “career ladder,” or a job-by-job career path; a plan for employer partnerships; a plan to provide support services and reduce barriers to program participation; the ability to leverage outside resources; and estimated growth in earnings over time.

Through this RFP process, the City intends to enter into multiple agreements with two or more qualified agencies and organizations for the services being sought (see Section III – Scope of Work). These contracts will be multi-year contracts with the possibility of one or two one-year extensions if funds are not fully expended by the end of the contract, based on need and satisfaction of service criteria. No additional funding will be allocated after the contract term ends, until a new RFP is issued and agencies or organizations are selected through a competitive procurement process.

The City Council has allocated 1,100,000 of Measure HH Funds in FY 26-27. The City seeks by way of this RFP to obtain the listed services in a manner that maximizes the quality of services while also maximizing value and outcomes. Proposers must be able to show that they can perform the servicesrequested. Such evidence includes, but is not limited to, the respondent’s demonstrated competency and experience in delivering services of a similar scope and type and availability of the proposer’s personnel resources.

City Council will review recommended proposals and reserves the right to change budget amounts as they see fit. Annual funding allocations are subject to City Council approval and reevaluation, based on the availability of funds.

Measure HH revenue is not intended to fund the full administration of job training programs, but rather to augment resident participation in programs run by partner agencies and organizations. Successful Respondents will demonstrate an ability to leverage outside funding or existing resources and, where applicable, the broader regional ecosystem of training programs.

Measure HH
Approved
(2018)
Best
Practices
Analysis
(2020-2021)
Pilot Phase I
(2023-2024)
Funded 80
Participants
Pilot Phase II
(2024-2025)
Funded 40
Participants
Final
Evaluation
(2025)
RFP
(2026)
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II. BACKGROUND
About Measure HH
On November 6, 2018, 79.58% of voters of East Palo Alto approved Measure HH, an annual parcel tax of $2.50 per square foot on commercial office space of 25,000 square feet or more. Measure HH is expected to generate nearly $1,700,000 annually, although funding may vary from year to year depending on economic trends and development activity in East Palo Alto. Allowable Measure HH uses include funding projects and programs related to affordable and supportive housing (emphasizing net new housing), and access to job opportunities for East Palo Alto residents in the science, technology, engineering, and mathematics (“STEM”) sectors and building trades. Specifically, a minimum of 35% of all revenues generated by Measure HH must be used to construct new, affordable housing stock, and a maximum of 15% of revenue may be used for city staff and overhead costs to administer Measure HH funds.

For more information, visit: https://www.cityofepa.org/econdev/page/workforcedevelopment.

Report on Best Practices
In early 2020, after passage of Measure HH, the City competitively contracted with Brightline Defense Project (“Brightline”) to develop strategies for maximizing Measure HH funding. During study sessions with Brightline in July and November 2021, the City Council expressed special interest in pre-apprenticeships and alternative STEM career pathways.

Launch of Pilot Measure HH Pilot Workforce Development Program The City launched an 18-month Measure HH Pilot Workforce Development Program in March 2023 (“Pilot Phase I”), awarding JobTrain, Live In Peace, and StreetCode Academy a total of $775,215 after a competitive process to provide job training, job placement, and support services to an initial eighty (80) East Palo Alto residents. In September 2024, the City Council extended the program into a Pilot Workforce Development Program Phase II (“Pilot Phase II”) period through December 2025, and allocated additional funds to the three organizations totaling $366,418, to continue providing services to an additional forty (40) residents, for a total funding commitment of $1,141,633 over three years.

The City Council set aspirational metrics for the pilot periods, including: 85 percent course completion, 75 percent job placement within three months, an average starting wage of $22–$25/hour, and achievement of a living wage within 36 months of program completion. Note: in 2023, the living wage was approximately $28/hour in San Mateo County based on a single adult without children.

The pilot programs’ quarterly performance reports are available on the City’s website:
https://www.ci.east-palo-alto.ca.us/econdev/page/measure-hh-pilot-workforcedevelopment-program. 106

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Pilot Program Evaluation
City Council expressed deep interest in program evaluation. The March 19, 2024 mid-year program evaluation demonstrated the great need for workforce development funding, as 61% ($471,932.25) of the total funds had already been expended within one year of the program, between March 2023 and March 2024.

In August 2024, the City competitively contracted with Informing Change to conduct a third-party evaluation of the Pilot Workforce Development Program. From August 2024 to April 2025, Informing Change evaluated the efficacy of the pilot program through interviews, focus groups, site visits, and data analysis. Informing Change recommended areas of improvement and developed criteria to use for evaluating wage impacts of the program, to be implemented in the 36 months after the completion of the training courses. Informing Change’s evaluation and conclusions may be found in the July 15, 2025 City Council staff report.

Summary of Pilot Program Accomplishments

1. Program Participants
a. The Pilot Program (Phases I & II) funded job training and support services to a total of 97 East Palo Alto residents.
b. Demographics:
• The racial/ethnic backgrounds of participants were similar to the overall East Palo Alto population.
• The proportion of female-identifying residents participating in the Pilot Program were lower than the overall East Palo Alto population. • Participants skewed slightly younger than the overall East Palo Alto population.
• Participants were more likely to hold a high school diploma or equivalent and less likely to have college or advanced education than the overall East Palo Alto population. Nearly half of the participants were unemployed when they began their training.

2. Outcomes
a. Of the participants who completed the program, post-program data is available for 53 participants. Of those 53.81% were hired for jobs related to their training. b. The unemployed group fell from 47% pre-program to 8% post-program. c. The average hourly wage of participants employed full-time after completing their respective program was $26.68.
d. Participants credited their newly acquired skills and knowledge for supporting their access to new jobs and increased wages. They were optimistic about their future earning potential.
e. Participants identified benefits beyond employment, including skills and knowledge gains, exposure to different career paths, and increased confidence and motivation to continue growing.
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3. Key Factors Affecting Participants’ Success
a. Program Benefits:
• Removal of financial barriers to participation
• Welcoming and encouraging environment with high-quality staff and educators
• Multiple program modalities and options
• Different career counseling approaches to help participants determine a pathway
• Offer of wraparound support services
b. Employment Challenges:
• Recent downturn in job market
• Seasonal nature of work (e.g., trades jobs)
• Shift of STEM jobs toward freelancing and gig work
• Wait-time to join a union
Continued Needs in Workforce Development
On December 17, 2024, the City Council adopted the Ravenswood Business District/4 Corners (RBD) Specific Plan, superseding the 2013 RBD Plan. Given that the development in the Specific Plan area is anticipated to include substantial office and R&D/lab uses, it will be essential to invest in workforce training to ensure that residents can take advantage of these new jobs. Currently, there is a mismatch between the educational attainment and occupations of residents and the projected occupations/skill requirements of new jobs in the Specific Plan area. Future R&D/life science uses are likely to include occupations that pay livable wages and would be accessible to residents without Bachelor’s or advanced degrees through technical and on-the-job training. See the Final RBD Update here.

In June 2025, the East Palo Alto City Council adopted its Strategic Priorities for FY 2025- 2029 and a focused Work Plan for FY 2025-2027 that prioritized initiating an ongoing workforce development program.

Later in January 6, 2026, the City Council also adopted its first Economic Development Strategic Plan (EDSP), which identified existing program strengths, including training in tech and entry-level skills for youth andyoung adults and critical gaps such as preparing residents for employment in advanced manufacturing and tech beyond coding fundamentals such as biotech jobs. It also identified emerging opportunities such as training for jobs in healthcare, green jobs, and with counseling/mentorship, as well as under-tapped and new opportunities such as employer partnerships, regional educational institutions, center for economic mobility, new City-operated entrepreneurship center, and regional institutions/providers. The EDSP recommends the City invest in workforce development to connect East Palo Alto residents to new economic opportunities and expand the City’s appeal for opportunity sectors. One of the initiatives listed in the EDSP, Priority Action 2B.1, is to work with workforce development partners to provide industry-aligned trainings. 108

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III. SCOPE OF WORK
Organizations and firms responding to the City's RFP (Respondents) must submit their proposals that thoroughly describe their experience, capacity, and ability to perform the services being sought by the City, listed in Table 1 below. Respondents must submit a separate proposal for each Service Area they are interested in, or a portion of one of the training programs based on existing organizational capacity (e.g. training for 10 students annually instead of 40 students), which will be ranked/rated separately by Service Area.

If submitting a proposal for more than one Service Area, combined benefits or economies of scale should be described, if applicable.

Respondents for the first three Service Areas listed in Table 1 should highlight how they will target outreach to residents who may benefit from the services, how they will reduce barriers to accessing the services (including translation and interpretation services, among other things), and how they will rapidly enroll and maintain engagement of new program participants beyond the training period, and how they will collect quantitative and qualitative data to report to the City. Respondents may show how they are able to partner with other organizations and leverage outside funding to expand their services.

Table 1: Service Areas, Funding/Target, Scope of Work Summary and Contract Terms Service
Area
Funding
or Target
Scope of Work Summary Contract
Term

1. STEM/Life
Sciences
Fields
Training
40-60
students
total in
2-3 years
Subject to
Council
approval.

Education, training and/or preapprenticeship program to provide career pathways to living-wage jobs in
the STEM/Life Sciences sectors.

Program should respond to current labor
market needs, provide accessible and
equitable services—including
wraparound supports and multilingual
access—and incorporate employer
partnerships that offer work-based
learning experiences and pathways to
employment.
2-3 years,
with 1-2 oneyear
extension(s)
Subject to
Council
approval.

Anticipated
contract(s) start
date: Winter/
Spring 2027, to
be determined

2. Building
Trades
Training
40-60
students
total in
2-3 years
Subject to
Council
approval.

Education, training and/or preapprenticeship program to provide entry into living-wage jobs in the building
trades.

Subject to
Council
approval.

Anticipated
contract(s) start
date: Winter/
109

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learning experiences and pathways to
employment.

Spring 2027, to
be determined

3. Master
Contractor
Approx.
$200,000
every 2
years
Subject to
Council
approval.

The Master Consultant will strengthen
workforce development outcomes by
building and managing partnerships
among employers, training providers,
unions, community organizations, and
Measure HH contractors to expand
career exploration, work-based learning,
internships, apprenticeships, and
employment opportunities.

The consultant will coordinate employer
and alumni engagement activities,
facilitate collaboration across partners,
administer fellowship and scholarship
opportunities, and support participants'
successful transitions into living-wage
careers.

During the first two years, if applicable,
the consultant will also oversee quarterly
reporting and invoice processing, and in
the final two years, will focus on
developing alumni networks and
conducting longitudinal tracking to
measure employment, wage, and
career outcomes, while ensuring
continuous improvement and
responsiveness to workforce needs.
6 years, with
1-2 one-year
extension(s)
Subject to
Council
approval.

Anticipated
contract start
date: October
2026, to be
determined

4. Program
Evaluator
Approx.
$100,000
every 2
years
Subject to
Council
approval.

The organization will develop and
manage a standardized system for data
collection, reporting, program
evaluation, and longitudinal tracking to
measure participant outcomes, ensure
accountability, and support continuous
improvement across Measure HH-funded
programs.

Responsibilities include establishing
performance metrics and data-sharing
protocols, evaluating program
effectiveness, tracking employment and
wage outcomes over time, preparing
evaluation reports and presentations,
and providing technical assistance to
contractors and City staff.
6 years, with
1-2 one-year
extension(s)
Subject to
Council
approval.

Anticipated
contract start
date: October
2026, to be
determined.
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Based on Informing Change’s findings and the input from the pilot program organizations, the City is seeking proposals with the following qualities:

1. Service Areas 1&2 – STEM & Building Trades Training: Labor Market Alignment, Eligible Training Programs, and Living-Wage Career Pathways: The City seeks proposals that are responsive to current and emerging labor market conditions and that prepare participants for careers with strong earning potential and opportunities for advancement. Proposals should demonstrate how training programs align with workforce demand, industry trends, and living-wage employment opportunities.

1. Labor Market and Economic Alignment
a. Demonstrate an understanding of current and projected workforce needs, including emerging industries, occupations, and technologies that are expected to create employment opportunities for residents in the STEM and building trades fields.
b. Utilize, to the extent possible, labor market analysis and economic data to ensure program offerings are responsive to changes in the regional economy, workforce demand, and technological advancements, including the growing impact of artificial intelligence and other emerging technologies.

2. Expanded Eligible Training and Employment Opportunities a. Within the parameters of Measure HH, propose training and employment pathways that prepare participants for a broad range of STEM and building trades careers that can lead to living-wage employment. b. The City will allow consideration of training and employment programs that cover a broader range of STEM and building trades skills jobs that could achieve a living wage. For example, where STEM training opportunities focused on high-tech, software or computing programming categories, the City will now allow additional jobs in tech, life sciences, or STEM fields, such as but not limited to, entrepreneurship, including contractor law and small STEM business formation, artificial intelligence, and other STEM-related careers. In addition, the City is allowing training related to building trades such as, but not limited to, project development and technical support in building trades jobs.
c. All proposed occupations and training pathways must receive written approval from the City.

3. Living-Wage Outcomes and Career Advancement
a. Demonstrate how proposed training programs lead to careers that provide wages sufficient to meet living wage goals.
b. As best as possible, identify expected wage outcomes, employment opportunities, and advancement potential associated with each proposed training pathway.

4. Career Pathways and Economic Mobility
a. Demonstrate a clear career ladder for participants, including entry-level positions, opportunities for advancement, industry-recognized credentials, and projected wage growth over time.
b. Describe how participants will be supported in progressing from training to employment and from initial employment to higher-skilled, higher-wage career opportunities.
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2. Service Areas 1&2 – STEM & Building Trades Training: Enhanced Program Accessibility, Wraparound Support, and Equity: The City seeks proposals that demonstrate a comprehensive approach to reducing barriers to participation, increasing accessibility, and promoting equitable access to training, employment, and career advancement opportunities. Proposals should include the following:

5. Expand Accessibility and Wraparound Supports:
a. Provide or coordinate wraparound services that address barriers to participation, including childcare, transportation assistance, financial support, career counseling, case management, and other individualized supports.
b. Offer flexible program delivery options, such as evening classes, shorterterm or modular training programs, and other scheduling accommodations that support working adults, caregivers, and participants with competing responsibilities.
c. Monitor utilization and outcomes of support services and report on their effectiveness.

6. Increase Language Access and Multilingual Learning Opportunities:
a. Provide Spanish-language and other multilingual training and support services to better serve East Palo Alto residents.
b. Incorporate vocational English language instruction that is integrated into workforce training and workplace settings, rather than standalone language instruction alone.
c. Offer language development opportunities that improve workplace communication, including sector-specific English instruction and, where appropriate, Spanish-language learning opportunities.

7. Ensure Accessibility for Participants with Diverse Learning and Support Needs:
a. Implement accommodations for participants with physical disabilities, learning differences, and other accessibility needs.
b. Provide technology access and support, including laptops, internet connectivity, assistive technology, recorded instruction, and alternative learning formats when appropriate.
c. Incorporate diverse instructional approaches, including hands-on learning opportunities and specialized educational support, to ensure participants with varying learning styles can succeed.

8. Advance Equity and Inclusion:
a. Develop targeted outreach, recruitment, and retention strategies to increase participation among populations that are underrepresented in STEM and building trades careers and representative of East Palo Alto demographics.
b. Demonstrate how program design, partnerships, and support services will improve equitable access to training, employment, and career advancement opportunities.

9. Support Employer Engagement and Work-Based Learning:
a. Demonstrate employer engagement strategies and partnerships that create internships, job shadowing opportunities, apprenticeships, and other work-based learning experiences for participants.
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b. Describe how employer partnerships will support participant skill development, career exploration, and successful transitions into employment.

3. Service Area 3 – Master Contractor: Deepened Employer and Alumni Engagement, Partnerships and Workforce Connections: The City seeks a Master Contractor that will deepen employer engagement, strengthen partnerships and collaboration, and expand student learning and workforce opportunities. The selected organization will:

1. Establish an Employer Advisory Council:
a. Convene a standing group of local employers from STEM and building trades sectors to provide input on workforce needs, program design, participant preparedness, and hiring trends.
b. Schedule quarterly meetings and incorporate employer feedback into program improvements and job placement strategies.

2. Facilitate Employer Engagement and Direct Connections:
a. Increase program visibility among local employers and build employer buyin. b. Organize biannual networking events, employer showcases, and job fairs connecting participants with local employers.
c. Actively broker introductions between Measure HH partners, employers, contractors, and industry associations.
d. Connect participants and contracted organizations with additional free training programs, workforce resources, and employment opportunities.

3. Secure Hiring, Internship, and Apprenticeship Opportunities:
a. Develop and maintain partnerships with employers to create internships, pre-apprenticeships, apprenticeships, and employment opportunities for participants and alumni.
b. Support contractors in implementing employer engagement strategies and identifying hiring partners.
c. Consider incentive-based approaches that encourage employer participation and successful job placement outcomes.

4. Leverage First Source Hiring and Union Pathways:
a. Support implementation of the City’s First Source Hiring Ordinance by connecting participants with City contractors, grantees, and employers and recommending qualified candidates for available positions. b. Strengthen relationships between Measure HH-funded programs, construction companies, labor unions, and trade associations. c. Recruit or partner with a trades association or similar organization to facilitate pathways into union membership and apprenticeship programs that lead to stable, living-wage careers.

5. Establish Fellowships, Scholarships, and Work-Based Learning Opportunities:
a. Design and administer City-funded fellowship and/or scholarship programs, with an initial budget not to exceed $80,000.
b. Support participants in obtaining paid internships, apprenticeships, exposureships, or other work-based learning opportunities with the City or partner employers.
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c. Provide scholarships that support continued education through local colleges, technical programs, or industry-recognized training in STEM and building trades fields.
d. Administer stipends, as appropriate, to expand access to internships and apprenticeship opportunities.

6. Facilitate Collaboration Across Partners:
a. Support coordinated intake, assessment, counseling, mentorship. interviewing, and referral processes to ensure applicants are connected to programs that best match their interests and goals.
b. Convene regular partner meetings to share updates, outcomes, best practices, and lessons learned.
c. Foster collaboration among contractors, training providers, employers, and community partners.

7. Build Alumni Networks and Longitudinal Support:
a. Support the development of formal alumni networks that provide peer mentorship, professional networking, career support, and program feedback.
b. Coordinate alumni events and networking opportunities across contracted organizations.
c. Maintain participant engagement after program completion and facilitate connections between alumni and potential employers.

8. Support Longitudinal Tracking and Data Reporting:
a. Standardize data collection and reporting requirements through shared templates, reporting protocols, and data-sharing agreements. b. Collect participant information and track employment, wage, and career outcomes at 6, 12, 24, and 36 months after program completion. c. Update wage benchmarks annually to reflect current living-wage standards in San Mateo County.
d. Support participating organizations in collecting and reporting longitudinal outcome data.

9. Solicit Ongoing Feedback and Program Improvement:
a. Implement regular participant, alumni, employer, and partner satisfaction surveys.
b. Analyze feedback and outcome data to recommend program improvements and support continuous quality improvement across all contracted organizations.

4. Service Area 4 - Program Evaluator: Improved Data Collection, Reporting, and Longitudinal Tracking: The City seeks an organization that will support data collection, reporting, longitudinal tracking, and program evaluation activities to strengthen accountability, measure outcomes, and inform continuous program improvement.

The selected organization will:

1. Develop Data Infrastructure and Reporting Systems
a. Before program implementation, develop and implement standardized data collection and reporting processes, including shared reporting templates and/or a centralized database for all contractors. 114

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b. Ensure consistent collection of participant demographics, enrollment, completion rates, credential attainment, job placements, wage outcomes, and other performance indicators.

1. Establish Data-Sharing and Privacy Protocols:
a. Develop formal data-sharing agreements and protocols across contractors and partners to facilitate comprehensive program evaluation while ensuring participant privacy and compliance with applicable laws, regulations, and best practices (including but not limited to those related to cybersecurity).
b. Coordinate data collection, data quality assurance, and information sharing across participating organizations.

4. Establish Performance Metrics and Accountability Measures:
a. Develop feasible, measurable, and standardized performance metrics aligned with Measure HH goals and objectives.
b. Establish targets related to participant enrollment, completion, job placement, wage attainment, credential attainment, and long-term career outcomes.
c. Monitor contractor performance and provide recommendations for continuous improvement.

5. Conduct Longitudinal Tracking and Outcomes Analysis:
a. Track participant outcomes over time, including employment, wage progression, education attainment, and career advancement. b. Maintain participant engagement and conduct periodic follow-up activities to collect longitudinal outcome data and assess program effectiveness.
c. Analyze trends and outcomes across contractors and participant populations to identify successes, challenges, and opportunities for improvement.

6. Conduct Program Evaluation and Research:
a. Develop a comprehensive evaluation plan that includes project initiation activities, stakeholder engagement, evaluation methodologies, timelines, and reporting deliverables.
b. Conduct participant interviews, focus groups, surveys, landscape scans, program assessments, and reviews of relevant reports and documentation. c. Conduct site visits and training program shadowing activities to observe program implementation and participant experiences.
d. Summarize findings and observations to inform program improvements and future funding decisions.

7. Prepare Evaluation Reports and Present Findings:
a. Facilitate sensemaking sessions with City staff and stakeholders to review findings and identify recommendations every year.
b. Prepare interim and final evaluation reports that summarize program outcomes, lessons learned, and recommendations for strengthening workforce development investments.
c. Present findings to City staff, advisory bodies, and the City Council, including attendance at up to two virtual City Council meetings or presentations.

8. Provide Ongoing Technical Assistance and Support:
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a. Participate in regular project meetings with City staff and internal project coordination activities.
b. Provide technical assistance and additional program support, as needed, related to data collection, reporting, evaluation, performance management, and continuous improvement efforts.
c. Administer evaluation-related activities, including participant incentives, interview transcription services, and other necessary project support functions
IV. KEY ITEMS TO ADDRESS IN RESPONSE

1. Cover Letter. Include a cover letter with the proposal that includes, at a minimum:
a. Contact information
b. Title of the RFP
c. Interest in the Service Area*
d. Summary of proposed budget (with annual cost estimate and annual projected deliverables)
e. Declarative statement that the Respondent has reviewed all aspects of the City's Contractor and Professional Services Agreement, including the City's insurance requirements, and agrees with these documents. If the Respondent has concerns about the City's standard forms, those concerns shall be identified in the cover letter. Any proposal that does not acknowledge the City’s insurance and contracting requirements will be deemed ineligible.
*Note: A separate proposal is required for each Service Area the Respondent is interested in.

2. Organization Introduction. Include information on the organization, such as form of organization, length of time in business, office location(s), number of staff and a general summary of qualifications documenting the strengths and soundness of the organization, areas of expertise and licensing (if applicable). Include any subcontractors that will be assisting on the project.

3. Relevant Experience. Narrative describing experience and expertise in the Service Area. Specific examples of similar work completed or underway shall be provided, in addition to an overview of the organization’s performance in providing the particular services (performance metrics may include number of people served, and other quantitative or qualitative metrics). If more than one entity is partnering to respond to the City’s RFP, Respondent shall provide a narrative that includes the comprehensive experience of both entities.

Provide a complete listing of all related work undertaken or completed in the past five (5) years, in an easily comprehensible format. The listings must include:
• Project name, location, contract value, and description (describe 116

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relevance to this project);
• Role of the project manager in the effort; and
• Timeliness in completing projects.

4. Knowledge. Identify familiarity with economic development, workforce development, existing employment trends and opportunities, local and regional partnerships, diversity and equity, and working with local governments.

5. Client References. Include at least three references from agencies to whom the firm has provided similar services.

6. Description of Services and Detailed Staffing Plan. Provide a detailed explanation of your approach to delivering the services and reporting requirements. Items to address include:
• Description of proposed services.
• Anticipated timeline, and if applicable, length of the program(s), including initiation date(s) and end date(s) for program competition. • Staffing and other resources to be allocated to deliver the services. • Identify the team organization, staffing plan, and key staff, including the individual proposed as the project manager, and the relevant experience and role of the key individuals. • Include resumés of key staff and organization chart.
• Include contact information (i.e. email address and phone number) of the project manager, to be publicized on the City website if selected.
• Plan and organization-specific methods for collecting student information and reporting to the City in the quarterly reports, annual reports, and the 6, 12, 24, and 36 months after program completion. • Respondents for the first three Service Areas listed in Table 1 should address:
• Number of individuals the Respondent could support with City funding;
• Description of how and where the services will be delivered (e.g. in person in East Palo Alto, in person outside the City and/or virtual);
• Description of how outreach to residents will be conducted; • Description of how barriers to accessing the services (including translation and interpretation services, among other things) will be reduced;
• Description of how participants will be recruited, enrolled and maintained engaged beyond the training period;
• Description of how the participants will be connected to real employment;
• Description of how relationships to job generators will be fostered;
• Description of how participants will be set on a path to living wage compensation (at least $38 an hour according to MIT’s most recent Living Wage Calculation for San Mateo County; 117

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feasible wages by field will be assessed by the Program Evaluator);
• Description of how quantitative and qualitative data will be collected and what metrics may be used for reporting purposes; and
• Description of how partnerships with other organizations and outside funding will be leveraged to expand their services.

7. Budget & Cost Structure. Respondent shall submit an itemized time and materials budget to accomplish the service delivery plan. The budget should include a detailed schedule of hourly rates for all staff positions that would be assigned to the proposed tasks, and a breakdown of where the City’s investment would contribute from point of entry to program completion. The City requests that, if applicable for Service Areas 1-2, the Respondent include per-participant costs and describe the process of what will happen if a participant drops out of the program.

Once the City has selected a contractor for each Service Area, staff and the selected Respondent(s) will work together to finalize the appropriate scope of work and budget subject to City Council’s approval.

Measure HH revenue is not intended to fund the full administration of job training programs, but rather to augment resident participation in programs run by partner organizations. Successful Respondents should demonstrate an ability to leverage outside funding and, where applicable, the broader regional ecosystem of training programs.

8. Outcomes and Evaluation. Identify program deliverables and performance measures your organization realistically has the capacity to provide, and performance measures and outcomes that your organization may be able to provide, but with additional resources. Respondents offering training services shall provide quarterly invoices and reports, annual reports, and wage reports 6, 12, 24, and 36 months after program completion. At minimum, the City is seeking the deliverables in Exhibit A - Performance Report Outline (to be finalized during contract negotiation), however, the Master Contractor and Program Evaluator will support the City in finalizing reporting requirements.

V. SELECTION CRITERIA
A selection committee will review and rank all the proposals received. The topranked Respondents may be asked to participate in an in-person or virtual interview. The selection committee will make a recommendation through the City Manager to the City Council for final decision.

Though it is conceivable that one organization may be able to perform all services desired, it is possible that proposers will have areas of expertise better suited to one of the services listed in Section III – Scope of Work. As such, the City reserves the right 118

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to offer a contract to an organization to deliver services for only a part of the service areas included in its proposal. The City may select more than one consultant in each service area to meet its needs.

The successful organization will be selected on the basis of professional qualifications and demonstrated competence. The following will be considered during evaluation of proposals:

1. Experience, qualifications, performance and availability of proposed project manager

2. Proposed project approach and use of best management practices

3. Budget

4. Ability to meet reporting requirements

5. Review of references

6. Agreement to enter into the Sample Agreement for Services contract or a list of proposed changes for City review
Proposals will be evaluated solely based on the Respondent's ability and capacity to perform the work outlined in the RFP. Respondents applying for more than one Service Area will be rated/ranked separately for each category.

Table 2: Evaluation Rubric
Evaluation
Areas Description Possible Points
Experience
Respondents shall demonstrate experience providing
the services outlined in the RFP with successful results. If applicable, Respondents shall have at least 10 years
of experience.
40 Capacity to
Perform
Respondents shall demonstrate the capacity to
provide the services and:
• Identify eligible participants;
• Collect information and data for longitudinal
reporting;
• Reduce barriers and increase accessibility;
• Respond to the participants, the City, and
other stakeholders in a timely manner;
• Leverage other partnerships, funding, and
resources (if applicable); and
• Utilize existing personnel.
30 Cost
Effectiveness
Respondents shall demonstrate the ability to leverage
additional funding and resources. Respondents that
can bring the City’s per participant cost down or
create economies of scale may receive higher points
in this section.
15 Familiarity with
East Palo Alto
Respondents will be scored based on knowledge and
experience working in the City of East Palo Alto
and/or with community groups that currently service
residents in the City.
5 119

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References Respondents will be scored based on the reviews from references. 5
VI. SUBMITTAL AND REVIEW PROCESS
Below is the timeline for RFP, contract and program. The City reserves the right to modify any of the dates in the schedule as deemed necessary.

Table 3: Dates and Deadlines
Event Date
RFP Released Monday, July 20, 2026
Intent to Respond Email Monday, July 27, 2026
Deadline for Questions Thursday, July 30, 2026 (12 PM)
Pre-Bid Conference Friday, July 31, 2026 (1 PM)
Response to Questions Monday, August 10, 2026
Submission Deadline for Proposals Monday, September 14, 2026 (12 PM) City’s Internal Evaluation of Proposals Week of September 14, 2026 Potential Interviews of Respondents Week of September 21, 2026 Scopes of Work Refined October 2026
City Council Consideration of Selected
Contractors and Budget Allocation
Anticipated October 20, 2026 or later
Execution of Contract(s) Anticipated between 30-60 days

1. Number of copies. One (1) Word and one (1) PDF file of the proposal is required.

2. Maximum Page Count. Each proposal should have a maximum page count of ten (10), excluding resumés.

3. Deadline. Proposals must be submitted no later than 8 weeks after the RFP release date, before 12:00 PM noon (see Table 3). Only email submittals will be accepted.

The date stamp on the email will reflect the time the submittal is received by the City of East Palo Alto. Respondents will receive prompt confirmation of receipt of the proposal.

4. Optional Intent to Respond Email. Respondents may, but are not required to, submit an email to [email protected] with an Intent to Respond, listing the Service Area(s) of interest, to receive an invitation to the Pre-Bid Conference. The link to join the Pre-Bid Conference will also be made available on the City’s RFPs and Bids page: https://www.cityofepa.org/rfps.

5. Questions. Written questions are due no later than 10 calendar days after the RFP release date. Direct all questions regarding the RFP in writing via email to 120

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[email protected]. The subject of the email shall be: “Questions regarding RFP for East Palo Alto’s Measure HH Workforce Development Program.” The City will publish an addendum to the RFP with responses to questions submitted prior to the deadline no later than 10 calendar days after questions are due.

6. Pre-Bid Conference. The City will host a non-mandatory virtual Pre-Bid Conference no later than 11 calendar days after the RFP release date (see Table 3). Staff will provide a brief overview of the RFP and answer questions live. The meeting will be recorded and posted with the addendum. Any unanswered questions will be published with the aforementioned addendum.

7. Send Submittals. One (1) e-mail copy of the RFP Response shall be sent electronically to [email protected]. The subject of the email shall be: “Proposal regarding RFP for East Palo Alto’s Measure HH Workforce Development Program.” Submission of a proposal indicates acceptance by the organization of the conditions contained in this RFP unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of East Palo Alto and the consultant selected.

8. Interviews. 60-minute interviews will be conducted at the end of September, or later. Please indicate in a cover letter the potential dates and times you are available.

9. Changes. If changes to the RFP are warranted, they will be made in writing, clearly marked as addenda to the RFP, and posted to the website at https://www.cityofepa.org/rfps. It is the responsibility of each proposer to check the website for changes and/or clarifications to the RFP prior to submitting a response, and a proposer’s failure to do so will not provide a ground for protest.

VII. ADDITIONAL DISCLOSURES AND REQUIREMENTS

1. CONTRACTOR AND PROFESSIONAL SERVICE AGREEMENT
All services shall be provided in accordance with the City's Standard Consulting Services Agreement (see Attachment 1). Prospective contractors shall be familiar with, and willing to execute, all terms contained in the Agreement before submitting a proposal. If the Respondent has concerns about the City's standard forms, those concerns shall be identified in the response cover letter.

2. INSURANCE REQUIREMENTS
The City will enter into multi-year agreements with consultants selected for each service area. Prior to entering into an agreement with the City, Respondent must provide evidence demonstrating compliance with the City’s insurance requirements (See Exhibit C to the Standard Agreement, and Sample COI, Attachment 2).
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3. DISCRETION AND LIABILITY WAIVER
The City reserves the right to reject all proposals or to request and to obtain, from one or more of the Respondents, supplementary information as may be necessary for City staff to analyze the submissions. The City may require Respondents to participate in additional rounds of more refined submittals before the final selection is made. The City may negotiate with one or more Respondents and may contract with one or more Respondents as the City deems appropriate.

The City reserves to solicit additional proposals at any point should it fail to negotiate a reasonable fee with the initially selected Respondent(s), or should that Respondent fail to execute the City’s agreement. The City may alter the selection process in any lawful way, postpone the selection process for its own convenience at any time, and waive any non- substantive defects in this RFP or the proposals.

4. DISCLOSURE OF RESPONSES
All responses to this RFP accepted by the City of East Palo Alto shall become the exclusive property of the City. If disclosure is required or permitted under the California Public Records Act or otherwise by law, the City shall not in any way be liable or responsible for the disclosure of any such records or part thereof.

5. CITY COUNCIL CONSIDERATION
A committee will review and evaluate any timely submitted proposals and will recommend proposal(s) for award to the City Council on October 20, 2026 or later.

Attachments

1. Attachment 1. City’s Standard Consulting Services Agreement

2. Attachment 2: Sample Certificate of Insurance (COI)
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EXHIBIT A – Draft Performance Report Outline

1. Program Enrollees: description and status of East Palo Alto resident enrollees in each program (e.g., age, gender, racial composition, special needs, education and/or employment status)
a. Continuing enrollees reported in prior quarterly reports b. New enrollees for this quarterly report
c. Enrollees who are no longer enrolled in program

2. Program Outreach: description of outreach activities and events (e.g., community groups targeted and number of attendees or participants).

3. Career Development: description of career development and job placement services provided to program enrollees.

4. Support Services: description of supportive services requested or provided to program enrollees.

5. Performance Metrics (may not be not applicable for first quarterly report) a. Program Completion Rate
b. Job Placement Rate
c. Starting Wage
d. Living Wage
e. Other applicable performance metrics by Contractor

6. Performance Assessment (as applicable)
a. Program successes and outcomes
b. Program challenges
c. Areas for improvement or follow-up
d. Program refinements and modifications

7. Final Performance Report: (may not be not applicable for first quarterly report)
a. Summary and conclusions on program outcome and accomplish ments (include both qualitative and quantitative assessment) b. Observations and recommendations to improve Measure HH Wor kforce Development Program
123
Resolution No. XX-2025 1 of 2
RESOLUTION NO. XX– 2026

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

DIRECTING THE CITY MANAGER TO ISSUE A REQUEST FOR PROPOSALS TO

CONTINUE THE CITY OF EAST PALO ALTO MEASURE HH WORKFORCE DEVELOPMENT PROGRAM IN AN AMOUNT NOT-TO-EXCEED OF $1.1 MILLION, WITH RECOMMENDED

PROGRAM, POLICY AND OPERATIONAL ENHANCEMENTS
WHEREAS, on November 6, 2018, the residents of East Palo Alto approved Measure HH, a parcel tax on commercial office space of 25,000 square feet or more, to fund affordable housing and workforce development programs for East Palo Alto residents; and WHEREAS, on November 15, 2022, the City Council appropriated an amount not to exceed $775,215 from the Measure HH Fund to fund a Measure HH Pilot Workforce Development Program (“Pilot Program”) and authorized the City Manager to enter into agreements with Live In Peace, JobTrain, and StreetCode Academy for job training, job placement services, and support resources for East Palo Alto residents for Phase I of the Pilot Program, with initial contract terms commencing on March 1, 2023, and subsequent extensions approved by Council through May 30, 2025; and WHEREAS, on July 16, 2024, the City Council authorized the City Manager to enter into an agreement with Informing Change to conduct a third-party evaluation of the Pilot Program and recommend program refinements, and appropriated an amount not to exceed $120,000 for the evaluation; and
WHEREAS, on September 3, 2024, the City Council appropriated an additional $366,418 from the Measure HH Fund to fund Phase II of the Pilot Program and authorized the City Manager to execute amendments to the existing agreements with JobTrain, Live In Peace, and StreetCode Academy to increase the not-to-exceed amounts and to extend the contract terms through May 30, 2025; and WHEREAS, on January 7, 2025, the City Council considered and accepted the evaluation plan submitted by Informing Change which outlined the scope. approach, and schedule for conducting the evaluation; and
WHEREAS, on June 17, 2025, the City Council extended the contract term for the Pilot Program through December 31, 2025, with the possibility of up to a one-year extension at the City Manager’s discretion, to provide sufficient time for JobTrain, StreetCode Academy, and Live In Peace to complete all program activities and report program outcomes.

WHEREAS, on June 17, 2025, the City Council adopted the Fiscal Year 2025-26 which included allocating up to $850,000 in Measure HH funds to continue the Workshop Development Program; and WHEREAS, Informing Change submitted an evaluation report, dated June 2025, that contains findings and recommendations for improving the Pilot Program based on input received through meetings with staffs from the City, JobTrain, Live In Peace, and StreetCode Academy, interviews with program participants, employers, and trade organizations, and meetings with a City Council subcommittee; and
WHEREAS, on July 15, 2025, the City Council considered and accepted the evaluation report from Informing Change, considered input from JobTrain, Live In Peace, and StreetCode Academy, and 124
Resolution No. XX-2025 2 of 2
considered staff recommendations for continuing and enhancing the Measure HH Workforce Development Program; and
WHEREAS, on July 15, 2025, the City Council voted to add to the resolution policy enhancements that identify what STEM fields can be covered under Measure HH, and authorized the City Manager to issue a Request for Proposals to accept proposals from agencies and organizations to continue the Measure HH Workforce Development Program with recommended program, policy and operational enhancements; and
WHEREAS, on July 7, 2026, the City Council reviewed the draft Request for Proposals and provided further program, policy and operational enhancements.

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. Directs the City Manager to issue a Request for Proposals to continue the Measure HH Workforce Development Program, in an amount not-to-exceed of $1.1 million, with recommended program, policy and operational enhancements; and

3. Finds that the proposed action does not constitute a “project” within 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 7
th day of July 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
125
PUBLIC HEARING 9.1
Karen Camacho, Interim Community Development Director
Shiri Klima, Assistant City Manager
SUBJECT: Temporary Housing Development Incentive Program Ordinance Introduction Recommendation
Staff recommends that the City Council:

1. Adopt a resolution to:
a. Waive the first reading and introduce an uncodified ordinance titled “Temporary Housing Development Incentive Program” (“THDIP”) to encourage the construction of new housing by reducing inclusionary housing obligations for residential developments, including the residential component of mixed-use projects, effective until December 30, 2027 (with complete Vertical Building Permit application due by January 30, 2028), or until some other sunset date approved by the Council; b. Direct the City Manager or designee to adopt Administrative Guidelines for the implementation of the THDIP; and
c. Find that the proposed actions do not constitute “projects” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and 15378(b)(5) (governmental, administrative or financial activity) and Section 15061(b)(3) (common sense).

DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY:

Yajaira Morales, Interim Community & Economic
Development Manager
Elena Lee, Planning Manager

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
126

2. Adopt another resolution to:
a. Appropriate an additional $13,300 from the Housing In Lieu Fund (Fund 207) and authorize the City Manager to amend the agreement with Street Level Advisors to add $13,300 for a new total not-to-exceed amount of $88,300; and
b. 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 15378(b)(5) (governmental, administrative or financial activity) and Section 15061(b)(3) (common sense).

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

Priority: Comprehensive Housing
Priority: Land Use, Economic, and Workforce Development Executive Summary
On March 24, 2026, the City Council hosted a study session regarding the City’s Inclusionary Housing Ordinance (IHO0. The discussion included three primary topics. First, staff provided an overview of the San Mateo County Grand Nexus and Feasibility Study, a countywide effort evaluating the financial feasibility of development requirements across multiple jurisdictions, including East Palo Alto. The study is anticipated to be completed in late spring 2027 and will inform future updates to the City’s housing policies.

Second, staff reviewed the City’s existing inclusionary housing ordinance, including current requirements, program outcomes, and comparisons to nearby jurisdictions. Finally, the staff presented the concept of a Temporary Housing Development Incentive Program (“THDIP”), which would temporarily reduce the inclusionary housing requirements to encourage housing production while the Grand Nexus and Feasibility Study is completed. Following the discussion, the City Council directed staff to return with a draft THDIP ordinance for consideration.

On June 9, 2026, staff presented the draft THDIP ordinance, along with additional information requested by the City Council regarding housing needs, housing affordability, development pipeline projects, and related housing policy considerations With four Councilmembers present, the Council did not reach consensus on the proposed THDIP and did therefore did not introduce the ordinance. Council discussion focused on the program’s duration, eligibility of Development Agreement projects, SB 330 projects and off127 site compliance projects, exemptions for smaller residential developments, and the extent of potential reductions to onsite affordability requirements.

Because no consensus was reached on key policy components, the draft ordinance before the Council remains substantially unchanged and includes bracketed options for major program elements. Staff is seeking Council direction on these policy choices and requesting introduction of the THDIP ordinance.

Proposed THDIP Program Components
Component Staff Recommendation
Purpose Temporarily incentivize new housing production by reducing inclusionary housing requirements while the City completes the Grand Nexus and Feasibility Study and considers permanent updates to the Inclusionary Housing Ordinance.

Program Duration Effective until December 30, 2027 (with complete Vertical Building Permit application due by January 30, 2028).

Rental Projects 60% IHO Reduction - Developers may provide either 8% of units at 50% AMI (Very Low Income) or 15% of units at 60% AMI (Low Income).

Ownership
Projects
60% IHO Reduction - Developers may provide either 7% of units at 80% AMI (Median Income) or 9% of units at 120% AMI (Moderate Income).

Small Project
Exemption
Projects with 10 units or fewer would be exempt from inclusionary housing requirements.

SB 330 Projects Eligible to participate if they amend their inclusionary obligations and become subject to current development impact fees; alternatively, they may retain existing obligations.

Development
Agreement
Projects
Excluded from THDIP and would require separate Council action to modify existing obligations.

Off-Site
Compliance
Projects
Excluded from THDIP due to the project-specific nature of their affordability agreements.

Eligibility
Requirements
Projects must obtain approval of a THDIP amendment, apply for a qualifying vertical building permit, and pay applicable permit fees before the program expires.

Program Elements
Unchanged
Existing rules related to affordability monitoring, in-lieu fee calculations, unit standards, construction timing, and long-term affordability restrictions remain in effect.

Implementation of the THDIP and the broader review of the City’s Inclusionary Housing Ordinance has required additional consultant support beyond the scope originally contemplated in the City’s agreement with Street Level Advisors (SLA) and Community Planning Collaborative (CPC). The City entered into a $75,000 agreement with SLA on January 7, 2026, to assist with oversight of the Grand Nexus and Feasibility Study, 128
community engagement, evaluation of the City’s inclusionary housing policies, and preparation of recommended updates to the IHO and associated guidelines.

Following Council direction at the March 24, 2026 study session, staff requested additional policy analysis, staff report preparation, meeting participation, and ordinance development assistance related to the THDIP. While staff was able to accommodate initial work through a reallocation of resources within the existing contract budget, subsequent Council direction to prepare, refine, and present the THDIP has resulted in work that exceeds the original contract scope and budget.

To support participation in the July 7, 2026 public hearing and ensure sufficient consultant resources remain available to complete the original scope of work associated with the Grand Nexus and Feasibility Study and future IHO updates, staff recommends amending the SLA agreement budget by $13,300, increasing the contract amount from $75,000 to $88,300. The additional funding would support project management, policy analysis, hearing preparation, Council briefings, public hearing participation, implementation support, and limited additional assistance related to future ordinance updates.

Accordingly, staff recommends that the City Council introduce the THDIP ordinance and approve the budget appropriation and contract amendment necessary to support completion of the ongoing inclusionary housing policy review and implementation effort.

Background
Inclusionary Housing Policies Generally and East Palo Alto’s Ordinance Specifically
Inclusionary housing policies typically require residential developers to provide a percentage of units at below-market prices or rents as part of new development. The City’s Inclusionary Housing Ordinance (“IHO”) is codified in Chapter 18.37 of the East Palo Alto Municipal Code. The IHO was originally adopted in 1994 and has been amended several times, most recently in 2019, with minor amendments in 2025. The City of East Palo Alto (“City” or “EPA”) first adopted Inclusionary Housing guidelines (“Guidelines”) as a companion document to the IHO on October 20, 2020. The last update to the Guidelines was July 16, 2025. The Guidelines are intended to assist developers by addressing the key components of the IHO.

Chapter 18.37 applies to newly constructed residential development, including the residential component of mixed-use projects, subject to certain exemptions. Accessory dwelling units and lot split projects developed pursuant to Senate Bill 9 are currently exempt.

For residential developments consisting of five or more units, the IHO requires that 20 percent of the units be provided as inclusionary units on the same site as the development 129
unless the City Council approves an alternative compliance option (such as paying in-lieu fees). For developments with fewer than five units, the developer chooses to either pay an in-lieu fee or provide one inclusionary unit.

Rental projects must provide inclusionary units at multiple income levels, including units affordable to households at approximately 35 percent, 50 percent, and 60 percent of area median income (“AMI”). Ownership projects must provide units affordable to households at approximately 80 percent and 120 percent of AMI. Affordability restrictions are generally required in perpetuity.

The IHO allows alternative compliance options with City Council approval, including off-site construction, payment of in-lieu fees, accessory dwelling units, or other methods that provide an equivalent or greater public benefit. When alternative compliance is approved, the required percentage increases to 25 percent.

Table 2 in Attachment 1 compares the current program to the proposed THDIP.

Analysis
This section reviews the draft THDIP uncodified ordinance. The discussion is organized by topic and correlates to Tables 1 and 2 in Attachment 1, which provides a summary of staff’s recommendations and options for Council’s consideration. For each topic, there is an overview, a review of regional trends, notes about current pipeline projects, staff’s recommendation, and some alternatives for Council’s consideration. Pipeline projects consist of projects with an approved or entitled application, or a pending application or preapplication, that are not yet built. In some instances, discussion of regional trends will reference the cities of Redwood City and the City/County of San Francisco’s temporary incentive programs, which were discussed in more detail on March 24th. In other instances, it will reference County or regional inclusionary housing trends.

Topic 1: Duration of the THDIP
THDIP is a temporary program, intended to incentivize development for an interim period.

To provide opportunity and certainty for new or pipeline projects, the expiration of the THDIP should have a certain end date that provides applicants opportunity to utilize the program.

The THDIP is intended to provide a development incentive for the interim period while the Grand Nexus and Feasibility Study and related legislative amendments are developed.

Staff anticipate legislative updates to be considered in late spring of 2027. Legislative changes could be effective mid- to late-summer 2027, or later.

THDIP is targeting projects that are initiating construction, not simply advancing through the permitting process. To advance a project under the THDIP, projects must apply for a THDIP Amendment, apply for a Vertical Building Permit, and pay the relevant building permit fees before the program expires. The term Vertical Building Permit refers to 130
foundation and/or core/shell, excluding grading and demolition permits. Generally, these permits require measurable investment in design fees and strongly signal the start of construction.

For administrative purposes, the THDIP also provides an additional 30-day period, whereby applicants must complete the qualifying Vertical Building Permit application, if deemed incomplete at application. The 30-day period is intended to remedy any unforeseen administrative burden.

Regional Trends: The City of Redwood City’s Affordable Housing Incentive Program, which offered a temporary reduction to inclusionary requirements starting November 2025, expires on June 30th, 2027. Redwood City allows projects entitled after the effective date of the ordinance to participate.

The City and County of San Francisco (“San Francisco”)’s program sunsets May 1, 2029, approximately 5.5 years after the effective date. However, the San Francisco program is limited to projects that were fully entitled prior to the effective date.

Staff Recommendation: The duration of the THDIP can be through December 30, 2027 (with application completion by staff by January 30, 2028), past the Grand Nexus and Feasibility timeline, to provide certainty and eliminate interface with Council deliberations on changes to the IHO.

Alternatives: Council could limit the program to twelve months after the effective date or extend the program beyond staff’s recommended timeframe.

Topic 2 & 3: Housing Projects or Mixed-Use Projects that May Not Avail Themselves of the THDIP
Projects that are entitled under SB 330, also known as the Housing Crisis Act of 2019, codified in Government Code Chapter 654, are afforded certain rights including limiting the number of hearings, shortening of Permit Streamlining Act timelines, and exemption from any ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1, except where the housing development has not commenced construction within two and one-half years following the date that the project received final approval. SB 330, however, does not prevent localities from reducing fees or other obligations, subsequent to the project’s approval.

Applicants who want additional certainty that their entitlements would be subject to the policies, rules, regulations, and conditions of approval applicable to the project at the time of approval, can also request a Development Agreement (“DA”). The DA, which is both an ordinance and a contract with the City, would lock in those provisions regardless of any subsequent changes to City policies, rules, and regulations after project approval.

Generally, these agreements include a carefully crafted set of agreements, including site131 specific inclusionary housing requirements. The DA and entitlements are typically approved concurrently by the City Council. The City has two projects that have DAs: Woodland Park Euclid Improvements and the University Circle Office project. Only the former includes housing.

Similarly, projects proposing to fulfill their inclusionary housing requirements through offsite compliance would require Council approval due to the site-specific nature of these agreements.

Regional Trends: The City of Redwood City excluded several project types from their temporary incentive program including: development projects requiring special discretionary approval, initiated by City Council, that involved General Plan Amendments; projects regulated by development agreements; and projects that have already paid development impact fees.

The City/County of San Francisco (“San Francisco”) excluded several project types from their temporary incentive program including projects regulated by development agreements; projects that chose to comply through land dedication; projects that have already paid impact fees; and projects that are approved after November 1, 2023.

Neither jurisdiction identified unique requirements for projects entitled under SB 330.

San Francisco is also considering a plan to reduce their inclusionary housing requirements from 15 percent to 5 percent and exempt projects with 25 or fewer units from providing onsite affordable housing altogether. This plan would be paired with a ballot initiative that would more than double San Francisco’s annual contribution to its Housing Trust Fund, used to finance and preserve affordable units. If approved by voters, San Francisco would increase its annual budget for affordable housing from $52 million to $125 million.

Development Pipeline Considerations: As of June 23, 2026, East Palo Alto has a total of seven SB 330 projects in the pipeline, five of which are in pre-application proposing entitlements under SB 330 and two of which already have secured entitlement approvals under SB 330.

There is only one residential project that is controlled by a DA. In the existing DA for this project, the developer selected and the Council approved an offsite inclusionary housing option, which requires the developer to ensure the production of 78 studio and onebedroom units for seniors at income levels ranging from 35 to 60 percent of the area median income. Stating financial difficulty meeting this obligation, the developer is proposing amendments to the DA that, among other things, would modify the inclusionary housing obligation. This item came before the City Council on June 16, 2026, and has been continued by Council to July 7, 2026.

Staff Recommendations: Provide two options for projects entitled under SB 330:
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1. Maintain current entitlements including their existing inclusionary housing compliance plans; or

2. Update their entitlement obligations to the inclusionary housing requirements in the THDIP but then be subject to current development impact fees.

THDIP projects that are controlled by DAs or elect to fulfill inclusionary requirements by providing units off-site would be excluded. These projects may seek site-specific amendments to their site-specific agreements from Council.

Alternatives: The City Council could not allow projects entitled under SB 330 to seek reductions under the THDIP program, or the Council could allow projects entitled under SB 330 to qualify for the THDIP with no additional requirements. The City Council could also include projects controlled by DAs, projects electing to fulfill inclusionary requirements by providing off-site units, or both.

Topics 4 and 5: Exempting Smaller Projects
Currently, Chapter 18.37 (EPA’s IHO) applies to most projects with one or more units. In contrast, many programs in the region exempt smaller projects from inclusionary requirements. The THDIP could temporarily exempt projects below a certain unit count from the inclusionary requirements to incentivize this construction type. To exempt smaller projects, the City Council must define exactly which projects are exempt.

Regional Trends: In San Mateo County, most jurisdictions exempt smaller projects from inclusionary housing requirements; however, the definitions of smaller projects vary.  9 jurisdictions exempt projects less than 5 units
 5 jurisdictions exempt projects less than 7 to 11 units  3 jurisdictions exempt projects less than 20 or 25 units Recently, the regional planning body Metropolitan Transportation Commission (“MTC”) established regional standards for inclusionary housing programs which suggested that programs should apply to all projects with more than 10 units.

Development Pipeline Considerations: As of June 23, 2026, more than half the projects in the City’s pipeline propose a total of 25 units or less. Most of these projects are under ten units. While the proposed temporary exemption for smaller projects would apply to half of the projects in the pipeline, it would only exempt a small number of the total units in the pipeline (3%). Temporarily exempting smaller projects could enable these projects to move forward; however, it would not meaningfully reduce the ratio of affordable and market-rate units in the pipeline.
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The table in Attachment 2 provides an overview of the inclusionary compliance options currently selected by each pipeline project, based on their proposed Inclusionary Housing Plan submittals or IHO requirements.

Staff Recommendation: Staff recommends the THDIP temporarily exempt projects with 10 units or fewer from the IHO. This would exempt 14 of the 29 pipeline projects.

Considering existing Inclusionary Housing Plans, nearly 10 affordable units and nearly $2 million in affordable housing fees (where fees assessed at FY 2025-26 rates) would be forfeited.

Alternatives: On March 24th and again on June 9th, the City Council discussed the concept of exempting smaller projects. During that discussion a variety of thresholds were mentioned. Council did not reach a consensus. Council can set this limit at any amount it wishes.

Topics 6 & 7: Onsite Affordability Requirements
The affordability level and percentage of total affordable units both impact the total program costs. The goal of the THDIP is to reduce costs and optimally incentivize new residential development. At the March 24th study session, Councilmembers expressed a variety of policy goals related to the onsite affordability requirements. Also, Councilmembers asked questions about the affordability needs and production in EPA. This section builds on that discussion and suggests a new framework for considering the appropriate reductions available under THDIP.

The City was on track to meet 27% of its State-mandated Regional Housing Needs Assessment (“RHNA”) 6 housing goals by the end of 2025 (which count RHNA numbers at the building permit issued stage). Consistent with nearly every jurisdiction in the State, the City could meet the goals by the end of the cycle if development market conditions improve.

The 27% is not spread out evenly across income levels. As previously shown, the City has permitted 54% of its required Extremely Low (“ELI”) and Very Low-Income (“VLI”) housing (collectively), as well as over 100% of its required Low-Income housing (“LI”). In contrast, the City has only permitted 9% of its required Moderate-Income (“MOD”) housing and 5% of its required Above-Moderate-Income (“Above-MOD”) housing.

Table A: RHNA 6 Progress
Income Level RHNA 6
Allocation 2023 2024 2025 Total Progress
Percentage
by Income
Category
ELI
(<30% AMI) 165
0 0 41 41
54% VLI
(31% - 50% AMI) 0 26 22 48
LI 95 5 8 84 97 102%
134
(51% - 80% AMI)
MOD
(81% - 120% AMI) 159 2 7 5 14 9%
Above-MOD
(>120% AMI) 410 7 8 6 21 5%
Total 829 14 49 158 221 27 %
*Note that Colibri Commons, aka 965 Weeks, received a building permit in 2023 that was previously unaccounted for, and received a certificate of occupancy in December 2025, so it is now being accounted for in the 2025 Annual Progress Report (“APR”).

San Mateo County Trends: Compared to all other programs in the County, the City of East Palo Alto’s existing IHO requires the highest share of affordable housing and the deepest levels of affordability. If all other development factors were equal, the City’s program would have the highest costs of compliance in the County.

Figure B. San Mateo County Inclusionary Programs
Figure B represents the percentage of affordable units (and affordability levels) required for rental projects by jurisdictions. The graph is roughly organized from least to most costly compliance. Millbrae, near the middle of the chart, requires 10% of the units to be affordable to households at 50% AMI and 5% of units to be affordable at 80% AMI.

Absent a market-specific feasibility analysis, we can only observe some key differences in EPA’s market that can inform the THDIP design. First, many jurisdictions in the County require affordable rental units at 80% or 120% AMI. Generally, higher AMIs for affordable units make sense where market rate rents are meaningfully above what 80% or 120% AMI households can afford. However, based on a preliminary review of recent market rents in 135
East Palo Alto, market rents are very close to the rental rates for 80% AMI units, even if we limit the comparison to newer, higher-amenity rental opportunities. This indicates that households seeking a rental affordable at 80% AMI are already served by the private market. Further, it would be difficult for developers to fill 80% AMI rental units, as households would have a preference for units that do not require income qualification if available. That is why the maximum income for rental households targeted by the existing IHO and the proposed THDIP is Low Income, or 60% of AMI.

Second, no other jurisdiction in the County requires onsite inclusionary units at 35% AMI.

There are programmatic and feasibility reasons for this policy trend. The cost of subsidizing 35% AMI households through inclusionary requirements is extremely high. Generally, inclusionary programs are more effective at generating affordable housing at deep levels of affordability with in-lieu fees, which are then used to leverage State and federal dollars to provide more affordable units at deeper levels of affordability. Often, the affordable housing generated with in-lieu fees include targeted amenities and services. The THDIP can meaningfully reduce the cost of compliance and still generate affordable housing if it eliminates the requirement to provide housing at the deepest levels of affordability.

Using a methodology of calculating the costs to subsidize inclusionary units compared to the potential market rate income, we were able to measure the relative costs of compliance of various potential alternatives. First, we tested a 25% reduction in costs, like the temporary program at Redwood City. To maximize flexibility for potential projects, the THDIP can offer two equivalent compliance options for rental projects (i.e. 15% at Very Low Income or 30% at Low Income) and two equivalent compliance options for ownership projects (i.e. 13% at Median Income or 15% at Moderate Income):

Tables C and D: Affordability Requirements for a 25% a THDIP Reduction Rental Recommendation - 25% Reduction Very Low
Income1
Low
Income2
Rental Option A 15%
Rental Option B 30%
Ownership Recommendation - 25% Reduction Median
Income3
Moderate
Income4
Ownership Option A 15%
Ownership Option B 13%
1 Very Low Income in this rental context is defined as households earning up to 50% AMI. 2 Low Income in this rental context is defined as households earning up to 60% AMI. 3 Median Income in this ownership context is defined as households earning up to 80% AMI. Though the City has already exceeded its RHNA goal for lower income units (specifically, for units at or below 80% AMI), the City’s intent is to provide maximum flexibility on inclusionary housing compliance, so staff recommends offering developers this option.
4 Moderate Income in this ownership context is defined as households earning up to 120% AMI. 136
Given factors outside the City’s control, including current market conditions, a 25% reduction in the City of East Palo Alto’s existing inclusionary requirements may not, by itself, sufficiently reduce overall compliance cost from a developer’s perspective and for that reason result in the production of additional inclusionary units beyond those otherwise anticipated.

Next, we asked, what percentage costs in reduction would make the City’s THDIP map to roughly the middle of the cost of compliance of all County programs. With a 60% reduction in compliance costs, the City’s THDIP would map roughly to the middle of the cost of compliance of various inclusionary housing programs in the County.

Figure E. San Mateo County Inclusionary Programs and 60% THDIP Reduction Again, the THDIP can offer two equivalent compliance options for rental projects and two equivalent compliance options for ownership projects. This option would allow a developer to produce 8% VLI rental units, 15% LI rental units, 9% Moderate Income ownership units, or 7% Median Income ownership units. In other words:
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Tables F and G: Affordability Requirements for a 60% THDIP Reduction Rental Recommendation - 60% Reduction Very Low
Income Low Income
Rental Option A 8%
Rental Option B 15%
Ownership Recommendation - 60% Reduction Median
Income
Moderate
Income
Ownership Option A 9%
Ownership Option B 7%
To understand the housing outcomes of a 60% IHO reduction under THDIP, staff offers two examples. If a 40-unit rental project were to advance under this THDIP option, it would have to provide 3 VLI units or 6 LI units, and accordingly, either 37 or 34 market rate units. A 25- unit ownership project would be required to provide 2 moderate- or median-income units and 23 market rate units.

To swing the pendulum in the complete opposite direction as the current IHO, and to be the most drastic in the City’s THDIP without completely removing all inclusionary requirements, a 90% reduction in compliance costs would map roughly to below the costs of South San Francisco or San Bruno’s inclusionary housing programs. A 90% reduction in the City of East Palo Alto’s program would require fewer affordable units than those jurisdictions.

Figure H. San Mateo County Inclusionary Programs and 90% THDIP Reduction Once more, here are two equivalent compliance options for rental projects and two equivalent compliance options for ownership projects. Under this option, the developer 138
would be required to produce 2.5% VLI rental units, 5% LI rental units, 2.5% Moderate Income ownership units, or 2% Median Income ownership units. In other words:

Tables I and J: Affordability Requirements for a 90% THDIP Reduction Rental Recommendation - 90% Reduction Very Low
Income Low Income
Rental Option A 2.5%
Rental Option B 5%
Ownership Recommendation - 90% Reduction Median
Income
Moderate
Income
Ownership Option A 2.5%
Ownership Option B 2%
Going back to the examples, if a 40-unit rental project were to advance under this THDIP option, it would require 1 VLI unit or 2 LI units, and accordingly, either 38 or 39 market rate units. A 25-unit ownership project would be required to provide 1 moderate- or medianincome unit and 24 market rate units.

Staff Recommendation: A 25% reduction does not seem to meet the City Council’s goal of incentivizing developers to build by meaningfully reducing the cost of compliance. However, a 90% reduction all but eliminates inclusionary housing in the City, which Council has not said it wishes to do. Staff understands Council’s goal to be to meaningfully reduce the cost of compliance to incentivize housing production while preserving inclusionary housing. If this understanding is correct, staff recommends the THDIP reduce the overall costs of compliance for rental and ownership by 60%. Also, a 60% reduction in compliance costs would map roughly to the middle of the cost of compliance of various inclusionary housing programs in the County.

Alternatives: The City Council can consider a range of reductions to the program.

Additionally, the City Council can also choose to provide only one compliance option for each tenure.

Program Administration
In order to participate in the THDIP, there are a few steps:

1. Developer must apply for and receive approval of a THDIP Amendment to Inclusionary Housing Plan and/or Agreement.

2. Developer must apply for a Vertical Building Permit and pay the necessary fee(s).

3. Developer must receive notice from the City that the application is deemed complete within 30 days (note that application completion does not equate application approval).
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The THDIP would temporarily amend some projects’ inclusionary housing obligations, with the intent of incentivizing housing development. Other than the elements explicitly called out in the draft THDIP, the inclusionary program would continue to operate consistent with the current IHO. The existing IHO components that would remain consistent with THDIP include: most of the definitions; the methodology for calculating the number of inclusionary units, affordable rents, affordable for-sale prices, and in-lieu fees; comparability and housing standards including unit sizes, design, location, and amenities; the timing of construction of inclusionary units; developers’ option to request alternative compliance options; all application and review procedures; and continued affordability.

Economic Considerations
To provide an assessment of the economic impact of projects moving forward, staff has analyzed the typical one-time fiscal impact and property taxes from development, assuming that they may more likely occur due to the incentive of the temporary ordinance.

Without proposing an exact fiscal impact of the THDIP, we have approximated potential net fiscal impact for a theoretical 10-unit project and 40-unit project. The approximations rely on data from a more detailed study of the Euclid Improvements Project completed for the City in 2020.

One-time fiscal impacts of new residential development include new jobs, taxes and fees related to construction activities. One-time revenues would include permit fees, employment taxes, business taxes, purchase of good and services by construction workers for the duration of the construction period and related sales tax revenues. Additionally, impact fees for Parks and Trails, Public Facilities, Transportation Infrastructure, water capacity and storm drainage, would generate roughly $343,000 for a theoretical 10-unit project and $1.37 million for a theoretical larger project.

The ongoing fiscal impacts of new residential development include an increase in property tax and sales tax revenues. Assuming an average assessed value of $750,000 per unit, East Palo Alto’s share of property tax revenues could be $25,000 annually for a 10-unit ownership project. Assuming an average assessed value of $500,000 for rental units, East Palo Alto’s share of property tax revenue could be roughly $66,000 annually for 40-unit rental project, depending on the assessed value of the units. New residents could also spend money in our restaurants and retail shops.
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Next Steps
If the City Council votes to introduce the ordinance today, staff will return shortly with a second reading and adoption of the ordinance. That ordinance would take effect thirty days after adoption; in the interim, staff would update the City website and create some materials summarizing the program, including administratively adopting THDIP program guidelines for implementation.

Contract Amendment
On January 7, 2026, the City contracted with Street Level Advisors (SLA) and Community Planning Collaborative (CPC) to provide oversight and project management of the Grand Nexus and Feasibility Study results, to conduct robust community outreach, to review, evaluate, and recommend improvements to the City’s IHO and program guidelines, and to update the Inclusionary Housing Ordinance (IHO) and Guidelines. That original contract was for $75,000, and thus it fell within the City Manager’s authority. Nonetheless, staff received City Council approval to proceed with contracting SLA at the December 16, 2025, City Council meeting.

Following the City Council’s direction on the March 24, 2026 study session to review the current inclusionary zoning ordinance, staff requested additional assistance from SLA.

They indicated that this work constituted a new task beyond the original scope of services.

To accommodate this request, staff amended the contract scope of work, reallocating the outreach budget toward further policy analysis support within the existing contract budget.

Although the contract amount remained unchanged, a first amendment to the contract was made to make room for SLA to prepare the Staff report and participate in the March 24 Study session. Additionally, the City Council directed staff to return with a temporary housing development incentive program, and again, SLA helped draft the staff report and participate in the June 9, 2026 City Council meeting. Now, upon staff’s request that SLA participate in this public hearing on July 7, 2026, SLA has requested an amendment to its contract to add $7,800 for project management and administration, virtual hearing attendance, hearing preparation, Council briefings, coordination with staff, and implementation support, as well as an additional optional $1,500 for Rick Jacobus’ attendance and expertise at the July 7, 2026, hearing, and $4,000 for optional additional hours to meet with staff for the ordinance update in 2027 (for a new contract total amount of $88,300). Given that the additional public hearing will leave an insufficient amount on the contract for the original scope of work, staff is seeking a budget allocation of an additional $13,300.
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Fiscal Impact
If the Council appropriates the additional $13,300 in Housing In-Lieu Funds (Fund 207) toward the SLA contract, staff will amend the contract for a new not-to-exceed of $88,300.

Adoption of the ordinance itself does not have an immediate fiscal impact.

However, implementation of the THDIP may reduce future inclusionary housing in-lieu fee revenue and affordable housing obligations associated with qualifying development projects. The extent of any such reduction depends on the number and type of projects that utilize the program.

The purpose of the THDIP is to incentivize residential development activity during the temporary program period. While additional development activity could generate future economic and fiscal benefits to the City, including potential increases in property tax and other revenues, any attempts to quantify those impacts at this time are speculative.

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. Additionally, notice of the public hearing for June 2 was published in the local newspaper: San Mateo Daily Journal on May 22, 2026. On May 28, 2026, the public was noticed that the June 2, 2026, public hearing was continued to June 9, 2026.

Environmental
The Temporary Housing Development Incentive Program (THDIP) Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15378(b)(4) and 15378(b)(5). CEQA Guidelines Section 15061(b)(3), commonly referred to as the “common sense exemption,” provides that CEQA applies only to projects that have the potential to result in a significant effect on the environment, and that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. CEQA Guidelines Section 15378(a) provides that a project under CEQA is one that "has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment." Section 15378(b) provides that administrative and organizational activities that will not result in direct or indirect physical changes in the environment are not projects for purposes of CEQA.

The proposed Ordinance establishes a Temporary Housing Development Incentive Program, applicable to Smaller Projects, Pipeline Projects, and projects entitled pursuant to SB 330 that meet the applicability criteria. The Ordinance applies exclusively to residential and mixed-use development projects that have already secured the necessary land use entitlements and that have either completed environmental review under CEQA 142
or are consistent with previously certified, adopted, or otherwise relied-upon CEQA documentation. The Ordinance does not approve or authorize any specific development project, nor does it expand development potential or introduce new land use entitlements beyond those previously analyzed.

As provided in the Municipal Code, the program allows for administrative adjustments to inclusionary housing requirements, in-lieu fee obligations, and related affordability provisions, consistent with the objective standards of the ordinance.

The Ordinance does not result in any direct or indirect physical changes to the environment, as it governs administrative procedures and financial obligations associated with affordable housing compliance rather than land use intensity, site configuration, or construction activity. All participating projects are required to have received “Final Approval,” as defined by the ordinance, and therefore have undergone, or are consistent with, environmental review as required under CEQA. Because the Ordinance does not have the potential to have a significant effect on the environment, it can be seen with certainty that no such impacts would occur. Because the Ordinance governs administrative procedures and financial obligations and does not result in, or have the potential to result in, direct or indirect physical changes to the environment, it does not constitute a “project” under CEQA pursuant to CEQA Guidelines Sections 15378(b)(4) and (b)(5).

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

Analysis of Levine Act Compliance: Not applicable.

Attachments
Attachment 1. THDIP Staff Recommendation and Alternatives Guide Attachment 2. Pipeline Project Table and Inclusionary Requirements Attachment 3. 2026 Area Median Incomes and Rent Levels (please note: the County just released this 2026 chart)
Attachment 4. Resolution to Introduce Draft THDIP Ordinance Attachment 5. Draft THDIP Ordinance
Attachment 6. Original Contract with Street Level Advisors and First Amendment Attachment 7. Resolution to Allow City Manager to Amend Contract with Street Level Advisors
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Attachment 1. THDIP Staff Recommendation and Alternatives Guide Table 1: New Terms for Proposed Temporary Housing Development Incentive Program Topic
#
Topic Purpose Staff Recommendation Alternatives for Council Consideration Notes
1 Duration of
THDIP
Defines the period that
THDIP would be
available to projects
Projects must apply for
and receive a THDIP
Amendment, apply for a
vertical building permit
and pay related permit
fees on or before
December 30, 2027 (with
complete Vertical Building
Permit application due by
January 30, 2028).

Ordinance also requires
vertical building permit
application be deemed
complete within 30 days.

If introduced today and
adopted on June 16,
2026, the THDIP could
end any date thereafter.

Staff recommends the
program be effective for
roughly 18 months.

Redwood City’s program
is also effective for ~18
months.

Council will likely
consider changes to
Chapter 18.37 in spring
2027 following
completion of the
feasibility study.
2 SB 330
Projects Defines a subset of
pipeline projects by
entitlement approvals to
enable unique
application of THDIP,
including off-site
compliance provisions
Eligible for THDIP with
additional conditions;
project must comply with
then-current impact fees.

Ineligible for THDIP; or
eligible with no additional
conditions.
3 DA
Entitlements
&
Off-site
Compliance
Project not eligible for
THDIP; requires Council
approval to modify.

Eligible for THDIP with or
without additional
conditions.

One project in the
pipeline with off-site
approved; it is through a
DA, and the developer
has separately
requested changes
4 Smaller
Projects
Exempt
Defines projects that
would be temporarily
exempt from
inclusionary
10 total units or less
exempt from all IHO
requirements
5, 8, 10, 12, 20, or 25
units or less exempt from
all IH requirements
144
Attachment 1. THDIP Staff Recommendation and Alternatives Guide Table 2. Comparing the Current EPA Inclusionary Housing Ordinance with the Proposed THDIP Topic
#
Requirement
Topic Current Ordinance Staff THDIP Recommendation
Alternatives for Council
Consideration Notes
5 Affordability
Requirements
for Smaller
Projects
20% Overall
Requirement
At range of AMIs for
rental or ownership
0% 0 to 75% reduction in
costs
6 On-site
Affordability
Requirements
for Ownership
Projects
20% Overall
Requirement
10% of units restricted to
Median Income (“MED”
or 80% AMI
households);
and
10% of units restricted to
Moderate Income
(“MOD” or 120% AMI
households)
~60% reduction in costs
7% at 80% AMI;
or
9% at 120% AMI;
0 to 75% reduction in
costs:
4% to 13% at 80% AMI
or
6% to 17% at 120% AMI
Staff recommend a
single AMI per project to
minimize fractional unit
considerations.
7 On-site
Affordability
Requirements
for Rental
Projects
20% Overall
Requirement
5% of units restricted to
35% AMI households;
and
10% of units restricted to
Very Low Income (“VLI”
or 50% AMI
households);
and
5% of units restricted to
Low Income (“LI” or 60%
AMI households)
~60% reduction in costs
8% at 50% AMI
or
15% at 60% AMI
0 to 75% reduction in
costs:
5% - 18% at 50% AMI
or
4% to 13% at 60% AMI
A single AMI will
minimize fractional unit
considerations.
80% AMI for rental is not
recommended; too close
to market rents in EPA.
35% AMI has high costs;
may be better served
through 100% affordable
funded by in-lieu fee.
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Attachment 2. Pipeline Project Table and Inclusionary Requirements (current as of 6/23/26) Year Project
Name Area
Total
Unit
Count
Total
Unit
Count
with
ADUs
Market
Rate
Units
Affordable
Units
(included in
the Total
unit count)
Tenure Stage Inclusionary
Requirement
Inclusionary/
Affordable
Agreement
Status
In-Lieu Fee
Payment
Amount (if
applicable)
State
Bill
Invoked
2022 1215
Cypress
1 TBD TBD TBD Ownership Building In-Lieu Fee
equivalent to
1*20% or 1
unit
Pending
Inclusionary
Housing Plan
$53,760 N/A
2022 805
Runnymede
2 TBD TBD TBD Ownership Building In-Lieu Fee
equivalent to
1*20% or 1
unit
Pending
Inclusionary
Housing Plan
$53,760 N/A
2019 924
Runnymede
St.
3 3 2 1 Rental Complete
d
1 affordable
unit onsite
Approved
Inclusionary
Housing Plan
& Recorded
Agreement
Plan
$0 N/A
2019 812 Green
St
4 4 4 0 Ownership Planning/
Building
In-Lieu Fee
equivalent to
4*20% = .8
In-Lieu Fee $215,040 N/A
2020 120-126
Maple Lane
4 4 4 0 Ownership Building In-Lieu Fee
equivalent to
4*20% = .8
In-Lieu Fee
(Approved)
$215,040 N/A
2020 842 Green
St /
Subdivision
4 4 4 0 Ownership Planning In-Lieu Fee
equivalent to
4*20% = .8
In-Lieu Fee
(under
review)
$215,040 N/A
2025 1269
Westminster
4 4 4 0 Ownership Building In-Lieu Fee
equivalent to
4*20% = .8
Inclusionary
Housing Plan
Approved
$215,040 N/A
2022 755
Schembri
Lane and
739
4 6 4 0 Rental Building In-Lieu Fee
equivalent to
4*.20%= .8
units
In-Lieu Fee
(Approved)
$239,360 N/A
146
Schembri
Lane
2020 990 Garden
St
7770 Ownership Building In-Lieu Fee
equivalent to
7*25% = 1.75
In-Lieu Fee $470,400
2020 2340 Cooley
Ave
8871 Ownership 1 affordable
unit and In-
Lieu Fee
equivalent to
4*25%in-lieu
fee payment
In-Lieu Fee $268,800
2020 547
Runnymede
Street
888 TBD Ownership Planning 1.6 affordable
units onsite
or 8*25% in-
lieu fee
payment
Pending
Inclusionary
Housing Plan

TBD N/A
2021 1062
Runnymede
St
888 TBD TBD Planning 1.6 affordable
units onsite
or 8*25% in-
lieu fee
payment
Pending
Inclusionary
Housing Plan

TBD N/A
2020 760 Weeks
St
10 10 102 Ownership Building 2 affordable
units onsite
Approved
Inclusionary
Housing Plan
0 SB35
2025 1010
Runnymede
10 1082 Ownership Planning 2 affordable
units onsite
or In-Lieu
Fee
equivalent to
10*25%
Pending
Inclusionary
Housing Plan

TBD N/A
2025 717
Donohoe St
14 14 122 Ownership Building 1 median-
income & 1
moderate-
income unit;
in-Lieu Fee
equivalent to

0.8 In-Lieu Fee
(Approved)
$43,008 N/A
147
2025 801
Donohoe
17 17 164 Ownership (Multifamily
Co-Op)
Planning 4 affordable
units onsite
Plan
submitted,
developer
providing
20%
requirement
$0 SB330
2023 1201
Runnymede
RBD 20 20 173 Ownership Building 4 affordable
units onsite
Pending
Inclusionary
Housing
Agreement

TBD N/A
2025 1933 Pulgas
Ave
58 58 499 Ownership Map 5 median-
income and 4
moderate-
income
Pending
Inclusionary
Housing
Agreement
SB330
2020 1804 Bay
Rd
RBD 75 75 75 TBD TBD Planning 15 affordable
units onsite
2023 851 Weeks
Street
(offsite for
Woodland 1)
79 79 1
manag
er’s
unit
78 Rental Building None – see
Woodland I
Apartment
Expansion /
Euclid
Improvement s
Pending TBD
2020 Harvest:

The Landing - Eden
Offsite BMR
Component
RBD 95 950 95 Rental Planning 19 affordable
units onsite
Off-site
component
$0 N/A
2024 4 Corners
Townhome
(1675 Bay)
RBD 106 106 95 11 Ownership Building 10%
affordable
units at 120%
AMI
approved by
Council
Pending
Inclusionary
Housing
Agreement
$0 SB 330
2025 1620 Bay
Road -
Design
Review and
Lot Merge
RBD 135 135 TBD TBD Rental Planning Pending
Inclusionary
Housing Plan

TBD N/A
2024 4 Corners
Mixed Use
(1675 Bay)
RBD 168 168 143 25 Rental Building 20%
affordable
units at 80%
Pending
Inclusionary
$0 SB 330
148
AMI
approved by
Council
Housing
Agreement
2024 EPA
Waterfront
Phase I
RBD 299 299 TBD TBD Planning 60 affordable
units onsite
N/A
2023 2120-2160
Euclid
Avenue
430 430 0 430 Rental Planning 86 affordable
units onsite
Pending
Application
review-they
will resubmit
in September
$0 SB330
2019 Woodland I
Apartment
Expansion /
Euclid
Improvemen
ts
West
Side
550 550 550 78 off site
units per
DA (and 1
manager
unit). Not
included in
total unit
count
Rental Planning/
Building
390 market
rate units,
160
demolished
RSO units
replaced, and
79 units
offsite
Pending
Development
Agreement
Amendment
N/A
2025 Woodland
Park III W.

Bayshore
Newell
Improvemen
t Project
West
Side
772 772 641 129 Rental/Owner
ship
Planning 128
affordable
units onsite
Pending
Inclusionary
Housing Plan
$0 SB330
2025 Woodland
Park II
West
Side
1071 1071 384 122 Rental/Owner
ship
Planning TBD Pending
Inclusionary
Housing Plan
$0 SB330
149
Attachment 3. 2026 Area Median Incomes and Rent Levels Relative to East Palo Alto Inclusionary Housing Income Limits by Family Size ($)
Income Category 1 2 3 4 5
35% AMI $ 51,470 $ 55,150 $ 66,180 $ 73,540 $ 79,420
Very Low (50% AMI) $ 73,550 $ 84,050 $ 94,550 $ 105,050 $ 113,500 Low (60% AMI) $ 88,260 $ 100,860 $ 113,460 $ 126,060 $ 136,200 Median (80% AMI) $ 117,700 $ 134,500 $ 151,280 $ 181,600 $ 195,040 Moderate (120% AMI) $ 168,650 $ 192,750 $ 216,850 $ 240,950 $ 260,250 Source: 2026 State Income Limits for San Mateo County and East Palo Alto Income Limits Source: 2026 Maximum Affordable Rent Payment in San Mateo County, https://www.smcgov.org/housing/income-limits-andrent-payments 150
ORDINANCE NO.

ORDINANCE NO. _______ (UNCODIFIED)

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF EAST PALO ALTO

TEMPORARY HOUSING DEVELOPMENT INCENTIVE PROGRAM
(THDIP) FOR SOME PROJECTS
WHEREAS, the City of East Palo Alto (“City”) is experiencing a housing crisis. California has one of the most expensive housing markets and one of the highest rates of homelessness in the nation. The City Council has adopted Chapter 18.37 of the East Palo Alto Development Code (Inclusionary Housing) (hereinafter referred to as the “Inclusionary Housing Ordinance” or “IHO”) in 2019, which was updated in 2025, in recognition of the need for homes affordable to lower income households in East Palo Alto and that Bay Area housing costs are high. The IHO’s purpose is to increase the supply of affordable housing by imposing inclusionary requirements for residential developers to help meet the needs of all community members; and WHEREAS, addressing the housing crisis requires a broad spectrum of land use and financing tools. For example, the Legislature has adopted State Density Bonus Law to address the financing gap by allowing a developer to include more total units in a project than would otherwise be allowed by the local zoning ordinance in exchange for affordable units. The City has a role to play too; and
WHEREAS, City staff has identified that certain residential and mixed-use projects have received their land use planning entitlements, but have not pulled any building permits to begin construction (defined below as “Pipeline Projects”). The applicants for these Pipeline Projects have raised a variety of concerns that the projects are not financially feasible. Because these projects are typical of most of the housing production in East Palo Alto, this suggests that residential development more broadly is not financially feasible under current economic conditions. Economic conditions that render residential and mixed-use development infeasible threaten several important policy priorities of the City, including expansion of the City’s housing supply well as the creation of jobs and growth of tax revenue; and WHEREAS, as the IHO inclusionary housing requirements may affect the economic infeasibility of residential and mixed-use development, temporarily reducing the IHO requirements, such as reducing the inclusionary housing percentage rates required for rental and ownership projects, as set forth in Section 4 below (“Temporary Housing Development Incentive Program for Some Projects”), may stimulate residential and mixed-use development, increase production of housing, create jobs, and grow tax revenue; and WHEREAS, on June 9, 2026, the City Council held a duly-noticed public hearing on the proposed Temporary Housing Development Incentive Program (“THDIP”) as required by State law and the East Palo Alto Development Code, but the Council did not take any action on this date; and
151
ORDINANCE NO.

WHEREAS, on July 7, 2026, the City Council held another duly-noticed public hearing on the proposed THDIP; and
WHEREAS, after the public hearing, the City Council has considered the whole of the record for the THDIP, including all relevant testimony, and determined that it desires to adopt the THDIP by the ordinance below.

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

SECTION 1. FINDINGS
A. The City Council hereby finds that all the foregoing recitals are true and correct and incorporated herein by reference.

B. The City Council further finds that the THDIP is consistent with the City’s General Plan and housing priority policies for the reasons set forth in the staff report associated herewith and the Council adopts such reasons as its own.

C. The City Council further finds the proposed ordinance will not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

D. The City Council further finds that the THDIP, in which the Inclusionary Housing Ordinance requirements in Chapter 18.37 are temporarily amended to reduce the affordable housing requirements for some Projects, is a programmatic regulatory adjustment that will uniformly provide an incentive for projects to advance to the construction stage which furthers the City’s housing and other policy priorities.

SECTION 2. CEQA COMPLIANCE
The City Council finds that the THDIP Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15378(b)(4) and 15378(b)(5). CEQA Guidelines Section 15061(b)(3), commonly referred to as the “common sense exemption,” provides that CEQA applies only to projects that have the potential to result in a significant effect on the environment, and that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. CEQA Guidelines Section 15378(a) provides that a project under CEQA is one that "has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment." Section 15378(b) provides that administrative and organizational activities that will not result in direct or indirect physical changes in the environment are not projects for purposes of CEQA.

The proposed Ordinance establishes a THDIP, applicable to Smaller Projects, Pipeline Projects, and projects entitled pursuant to SB 330 that meet the applicability criteria. The Ordinance applies exclusively to residential and mixed-use development projects that have already secured the necessary land use entitlements and that have either completed environmental review under CEQA or are consistent with previously certified, adopted, or otherwise relied-upon CEQA documentation. The Ordinance does not approve or authorize any specific development project, nor does it expand development potential or introduce new land 152
ORDINANCE NO.
use entitlements beyond those previously analyzed.

The Ordinance temporarily modifies the implementation of existing affordable housing requirements contained in Chapter 18.37 of the East Palo Alto Development Code by establishing a framework through which eligible projects may request a THDIP Amendment. As provided in the Municipal Code, the program allows for administrative adjustments to inclusionary housing requirements, in-lieu fee obligations, and related affordability provisions, consistent with the objective standards of the ordinance.

Because the Ordinance governs administrative procedures and financial obligations and does not result in, or have the potential to result in, direct or indirect physical changes to the environment, it does not constitute a “project” under CEQA pursuant to CEQA Guidelines Sections 15378(b)(4) and (b)(5).

SECTION 3. ADOPTION OF UNCODIFIED ORDINANCE
The following language, titled “Temporary Housing Development Incentive Program for Some Projects” is hereby adopted as follows:

UNCODIFIED ORDINANCE. TEMPORARY HOUSING DEVELOPMENT INCENTIVE

PROGRAM FOR SOME PROJECTS
XXXX.01 Purpose
A. The purpose of this chapter is to temporarily provide development incentives for some residential and mixed-use development projects, to help meet the City’s regional share of housing needs, during an interim period of the effective date until (December 30, 2027, or any other date).

B. To encourage construction of certain residential projects subject to the Inclusionary Housing Ordinance, the following Temporary Housing Development Incentive Program shall apply to eligible projects that meet the applicability requirements.

C. The City Council of the City of East Palo Alto does hereby adopts an uncodified ordinance that has the effect of temporarily amending the Development Code, such that this section supersedes all relevant requirements in Chapter 18.37 of the East Palo Alto Development Code, to effectuate the purposes set forth herein.

XXXX.02 Definitions
This Chapter shall rely on the definitions of Chapter 18.37.020 and also the definitions below:
153
ORDINANCE NO.

A. “Final Approval” shall mean that the residential or mixed-use development project has received all necessary entitlements to be eligible to apply for, and obtain, a building permit or permits and either of the following is met: (i) The expiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval, or (ii) If a challenge is filed, that challenge is fully resolved or settled in favor of the housing development project. Consistent with 65589.5(o)(2)(D).

B. “Smaller Projects” shall mean any residential or mixed-use project with less than (6, 10, 11, 13, or 26) units.

C. “Pipeline Projects” means those residential development projects, including the residential mixed-use projects, that either: (a) have received all required land use planning entitlements as of the adoption of this Ordinance but have not yet obtained Vertical Building Permits for all residential components of the project, regardless of the building permit status for that project’s non-residential components or for one or more separate residential or mixed-use buildings or phases, or (b) have received all required land use planning entitlements after the adoption of this Ordinance with appeal period running prior to a request for THDIP amendment.

Notwithstanding the foregoing, Pipeline Projects shall not include: (a) any project entitled under SB 330, relying on the streamlining provisions by filing a Pre-Application, (b) any project regulated by a development agreement, (c) any project that has already paid housing impact fees or in lieu fees, or (d) any project that elect to comply with Chapter 18.37 of the Development Code through offsite construction of inclusionary units.

D. “Projects entitled under a Development Agreement” shall mean projects that have a City-Council approved development agreement as obtained in compliance with applicable law, including Government Code Section 65864 and East Palo Alto Municipal Code Chapter 18.108.

E. “Projects entitled under SB 330” shall mean projects that invoked State Bill 330, also known as the Housing Crisis Act of 2019, codified in Government Code Chapter 654, for entitlement of the development project.

F. “THDIP Amendment” shall mean a City Manager, or their designee, approved amendment to a project’s Inclusionary Housing plan and agreement (Chapter 18.37.090(A) & (B)) consistent with Chapter XXXX.04, for any projects meeting the eligibility requirements stated in XXXX.02.

G. “Vertical Building Permit” shall mean foundation and/or core/shell, excluding grading permits and demolition permits.

XXXX.02 Applicability
The provisions of this chapter shall apply to:

A. Projects that: apply for a THDIP Amendment for the residential or mixed154 ORDINANCE NO.
use development, apply for a Vertical Building Permit for the residential or mixeduse development, and pay necessary permit fees by (December 30, 2027, or any other date); and the Vertical Building Permit application is deemed complete by the City within 30 days, and no later than (January 30, 2028, or any other date).

B. Projects that fail to file for a THDIP Amendment, file for a Vertical Building Permit or pay the associated building permit fee in full for the residential or mixeduse development by (December 30, 2027, or any other date), or have the Vertical Building Permit application deemed complete within 30 days, and no later than (January 30, 2028, or any other date), shall automatically revert to the then current affordable housing requirements of Chapter 18.37.

XXXX. 03 Exclusions
The provisions of this chapter shall not apply to:

A. Projects entitled under a development agreement shall seek City Council approval for any changes to the agreement, including any related documents, including changes to the Inclusionary Housing requirements, Inclusionary Housing Plan, and/or the Inclusionary Housing Agreement.

B. Projects that elected to comply with Chapter 18.37 of the Development Code through offsite construction of inclusionary units are exempted from this ordinance.

XXXX.04 Temporary Housing Development Incentive Requirements Provided that projects meet the applicability requirements of this section XXXX.02, Affordable Housing Requirements in section 18.37.050 shall be temporarily superseded by the following:

A. Temporary Housing Development Incentive for Smaller Projects. For Smaller Projects, as defined herein, the applicant may request a THDIP Amendment whereby the residential or mixed-use development would be exempt from Chapter 18.37 of the East Palo Alto Development Code and instead subject to the provisions of this Chapter.

B. Temporary Housing Development Incentive Program for Pipeline Projects. Applicants of Pipeline Projects, as defined herein, may request a THDIP Amendment, whereby the residential or mixed-use development be subject to the following temporarily reduced affordable housing requirements rather than the requirements set forth in Chapter 18.37.050:

1. Temporary On-site inclusionary requirement.
a) Ownership residential or mixed-use development shall provide one of the following:
i (2.5% - 15%) of the proposed residential units in an
ownership residential or mixed-use development project
shall be affordable to Moderate-Income households, or
ii (2% - 13%) of proposed residential units in an ownership 155
ORDINANCE NO.
residential or mixed-use development project shall be
affordable to Median-Income households.
b) Rental residential or mixed-use development shall provide one of the following:
i (5% - 30%) of the proposed residential units in a rental residential or mixed-use development project shall be
affordable to Low-Income households. or
ii (2.5% - 15%) of the proposed residential units in a rental residential or mixed-use development project shall be
affordable to Very Low-Income households,

2. Temporary Alternative Compliance, In-lieu Fee.
a) Ownership residential or mixed-use development in-lieu fee shall be 5% greater than the onsite requirements for On-site moderate income ownership units (XXXX.04(B)1.a.i).
b) Rental residential or mixed-use development in-lieu fee shall be 5% greater than the onsite requirements for On-site low-income rental units (XXXX.04(B)1.b.i).

C. Temporary Housing Development Incentive Program for residential or mixed-use projects entitled under SB 330. Projects entitled under SB 330 at or before the effective date of this ordinance that meet the applicability requirements detailed in XXXX.02 (A) have the following options:

1. Maintain project’s entitlement rights and obligations as detailed in the project’s entitlements under SB 330, including affordable housing requirements per Chapter 18.37.050.

2. Request a change to the project’s entitlements, which would include both:
a. A THDIP amendment request, which would amend a project’s affordable housing compliance plan, to the requirements detailed in Chapter XXXX.05(B) and
b. A signed affidavit requesting and agreeing to opt into the City of East Palo Alto’s then current Development Impact Fees, including but not limited to Parks & Trails, Public Facilities, Transportation, Storm Drainage, and Water Capacity as approved by City Council on March 4, 2025, or subsequently updated by action of City Council.

2. Projects entitled under SB 330 subsequent to the effective date of this ordinance may request a THDIP Amendment.

XXXX.05 Implementation
A. Eligible applicants may request the City Manager or their designee grant a THDIP amendment for specific development projects.

B. Notwithstanding any Development Code provisions to the contrary, in order to implement the Temporary Housing Development Incentive Program established by this Chapter, the City Manager or their designee is hereby authorized to review, approve, and modify, without a public hearing for discretionary review, the Inclusionary Housing plan and agreement (Chapter

18.37.090(A) and (B)), consistent with this Chapter, including:
156
ORDINANCE NO.

1. The applicable percentage of affordable housing units required by Chapter 18.37.050 in a manner consistent with this Chapter;

2. The applicable fee required by Section 18.37.080 in a manner consistent with this Chapter;

3. The number and/or affordability levels of units provided for projects that elected to develop using the State Density Bonus Laws (Government Code Section 65915 et seq.) and required findings related to eligibility for a density bonus, concessions and/or waivers and parking reductions, in a manner consistent with this Chapter. However, any such modification must ensure that Projects that receive any State Density Bonus benefits (e.g., additional density, concessions, waivers, and/or parking reductions) continue to meet the minimum affordability requirements and all applicable requirements under the State Density Bonus Law (Gov’t Code § 65915 et seq.) for the full affordability term to maintain those benefits;

4. The conditions of approval related to the City’s requirements for affordable housing;

5. The affordable housing plan and/or affordable housing agreement; (The affordability covenants;)

6. The “no net loss” findings required under Government Code Section 65863; and/or

7. Any and all related affordable housing documentation that may be necessary to ensure compliance with Chapter 18.37 or other applicable laws.

Any modification to entitlements made pursuant to this Ordinance shall include a condition that a Project must secure and pay for a Vertical Building Permit on residential or mixed use development on or before (December 30, 2027, or any other date), that this permit application must be deemed complete by the City by (January 30, 2028, or any other date), and that the developer must commit to pay all other City impact fees applicable to the affordability levels of the units (e.g., Parks & Trails, Public Facilities, Transportation, Storm Drainage, and Water Capacity Impact Fees), and if an applicant fails to do so, the affordable housing requirements applicable to the project shall automatically revert to the then current affordable housing requirements of Chapter 18.37.

All terms of Chapter 18.37 not explicitly temporarily superseded by this Chapter shall apply to residential or mixed-use projects that seek a THDIP Amendment.

C. Continued Validity of Inclusionary Housing Ordinance. Except as expressly provided for in this Ordinance, all provisions of Chapter 18.37 shall remain in full force and effect.
157
ORDINANCE NO.

SECTION 4. SAVINGS CLAUSE
If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

SECTION 5. CONSISTENCY
Any provision of the East Palo Alto Municipal Code inconsistent with this uncodified Ordinance, to the extent of such inconsistencies and no further, is hereby inapplicable and the provisions of this Ordinance control to the extent necessary to effectuate this Ordinance.

SECTION 6. PUBLICATION
The City Clerk shall publish this Ordinance as an uncodified ordinance in accordance with applicable law.

SECTION 7. EFFECTIVE DATE AND SUNSET PROVISION
This Ordinance shall be effective thirty (30) days after its adoption. This Ordinance shall expire by operation of law on (January 30, 2028, or any other date), unless extended by an amendment of this ordinance by the City Council before that date.

PASSED AND ADOPTED this ____ day of ______, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
158
Contractor and Professional Services Agreement Page 1 of 8 (Rev. 9.07.2021)

CONTRACTOR AND PROFESSIONAL SERVICES AGREEMENT
This Contractor and Professional Services Agreement ("Agreement") is made by and between the City of East Palo Alto, a municipal corporation ("City"), as authorized by the East Palo Alto City Council via Resolution No. 95-2025, and Street Level Advisors, LLC, hereinafter referred to as “Contractor”, who agree as follows:

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

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

3. Term. The term of this Agreement shall commence on January 7, 2026 and shall continue in full force and effect for a period of two (2) years, ending on January 7, 2028, unless earlier terminated. The term may be extended for up to one (1) additional year at the sole discretion of the City, subject to written approval of the City Manager.

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

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

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

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

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

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

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

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

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

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Contractor and Professional Services Agreement Page 3 of 8 (Rev. 9.07.2021)

12. Standard of Performance. Contractor shall provide products and perform all services required pursuant to this Agreement in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised under similar conditions by a member of Contractor’s profession currently practicing in California.

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

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

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

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

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

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

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The payment made to Contractor pursuant to this Agreement shall be the full and complete compensation to which Contractor and Contractor’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither Contractor nor Contractor’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of Contractor. The City shall not be required to pay any workers' compensation insurance on behalf of Contractor. Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

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

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

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

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

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

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

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

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

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

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

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

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23. Non-Discrimination/Fair Employment Practices. Contractor shall comply with all applicable federal, state and local laws, rules and regulations in regard to non-discrimination and non-harassment in employment because of race, color, ancestry, national origin, religion, sex, marital status, age, sexual orientation, medical condition or physical handicap. Contractor agrees to abide by the City’s Policy Against Discrimination, Harassment and Retaliation as set out in attached Exhibit D.

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

If to City: Melvin E. Gaines
City Manager
City Manager’s Office
2415 University Avenue
East Palo Alto, CA 94303
If to Contractor: Rick Jacobus
Principal
Street Level Advisors
1717 Webster St, Unit 1722
Oakland, CA 94612
Any party may change its address for receiving notices by giving written notice of such change to the other party in accordance with this section. Routine administrative communications shall be made pursuant to section 1 of Exhibit A.

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

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

27. Law Governing. This Agreement shall in all respects be governed by the law of the State of California without regard to its conflicts of law rules. Litigation arising out of or connected with this Agreement shall be instituted and maintained in the courts of San Mateo County in the State of California or in the United States District Court, Northern District of California, San Francisco/Oakland Division, Docusign Envelope ID: C3737C52-D9A4-4E09-A6D2-2D2C584ED6CA 164
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California, and the parties consent to jurisdiction over their person and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Exhibit D, entitled “Policy Against Discrimination, Harassment and Retaliation” IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year shown below the name of each of the parties.

Street Level Advisors
LLC
By:________________________
Rick Jacobus
Principal
DATE: ____________________
18308611
East Palo Alto Business License No.

CITY OF EAST PALO ALTO,
a municipal corporation
By:________________________
Melvin E. Gaines
City Manager
DATE:___________
APPROVED AS TO CONTENT:
__________________________
Interim Director of Community &
Economic Development
APPROVED AS TO FORM:

John D. Lê
City Attorney
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166
Contractor and Professional Services Agreement Page 1 of 11 Exhibit A (Rev. 9.07.21)

EXHIBIT A

SCOPE OF WORK

1. Representatives.

City Representative:

Yajaira Morales
Housing Project Manager
Community and Economic
Development Department
1960 Tate Street
East Palo Alto, CA 94303
Telephone: (650) 853-3189
Email: [email protected],
cc [email protected]
Contractor’s Representative:

Rick Jacobus
Principal
Street Level Advisors
1717 Webster St, Unit 1722
Oakland, CA 94612
Telephone: (510) 653-2995
Email: [email protected]
All routine administrative communications between the parties will be between the above named representatives and may be by personal delivery, mail, facsimile transmission or electronic mail as agreed between the Contractor Representative and City’s Representative.

2. Services and Schedule.

The services provided shall be as set forth in Attachment 1 of Exhibit A, attached hereto and incorporated herein by this reference and performed according to the schedule set forth therein. Contractor will complete all services by the end of the two-year contract period, or the end of any granted extensions.

3. Phased Performance.

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

4. Additional Services. Additional services are those services related to the scope of Services of Contractor as set forth in Exhibit A but not anticipated at the time of execution of this Agreement (“Additional Services”). Additional Services shall be provided only when authorized by an amendment to this Agreement and approved by the City Manager, or his or her designee. City reserves the right to perform any Additional Services with its own staff or to retain other Contractors to Docusign Envelope ID: C3737C52-D9A4-4E09-A6D2-2D2C584ED6CA 167
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perform said Additional Services. Any costs incurred due to the performance of Additional Services prior to the execution of an amendment will not be reimbursed under this Agreement or an amendment. .

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

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

Key personnel:
• Rick Jacobus, Principal, Street Level Advisors
• Kearstin Dischinger, Project Lead, Street Level Advisors • Joshua Abrams, Principal, Community Planning Collaborative • Sam Dolgoff, Project Manager, Community Planning Collaborative • Kristy Wang, Advisor, Community Planning Collaborative • Graphic Artist/Associate Planner
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Contractor and Professional Services Agreement Page 3 of 11 Exhibit A (Rev. 9.07.21)

EXHIBIT A
Attachment 1
Specific Scope of Work for Consultant Services for the
Inclusionary Housing Ordinance Analysis and Update
Activity & Description Deliverables/Objectives
Task 1: Project Management

1.1 Maintain close communication and coordination
with City staff via online check-in meetings monthly
(or as appropriate).

1.2 Report on the Grand Nexus Study work team to
share its interim findings and to work collaboratively
with City staff to determine additional analysis needs, edits to work products, and outreach to decision
makers.

1.3 Prepare slide decks to facilitate discussions and
present updates or new findings (as appropriate).

Ongoing –
• Kick Off Meeting within
one week of start of
contract
• Six coordination meetings
with agendas and notes
• Monthly Team Meetings
and minutes, as needed
• Quarterly invoices
• Shared project materials
folder
• Slide Decks
Task 2: Document Review & Policy Analysis
Identify barriers and opportunities for improving
program outcomes, including legal, financial, and
administrative considerations.

2.1 Program Review. Review and analyze existing
City inclusionary housing ordinance, procedures,
annual fee calculation updates, and related
documents

2.2 Policy Context. Review and incorporate policy
direction from Housing Element, East Palo Alto’s
2024-28 Affordable Housing Strategy, and City
Council’s Strategic Priorities.

2.3 Legal Context. Incorporate regulatory and legal
environment analysis, including AB 1505, and the
interface of inclusionary housing with the State Law.

Ongoing –
• Summary of document
review and policy analysis
to be incorporated in draft
Program Evaluation and
Recommendations Report
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Contractor and Professional Services Agreement Page 4 of 11 Exhibit A (Rev. 9.07.21)
Activity & Description Deliverables/Objectives
Task 3: Program Evaluation and Data Analysis
Assess effectiveness of current inclusionary housing
requirements in producing affordable units, meeting
fair housing goals, and meeting the Housing Element
goal.

3.1 Review and Assess East Palo Alto Inclusionary
Housing Program
Comprehensive Assessment. Conduct a
comprehensive multi-issue assessment of the
program using a standard questionnaire (walking
through 98 separate policies or practices).

Compare East Palo Alto’s results to successful
programs in other areas
4 Weeks after Kick Off Meeting
with City & Ongoing –
• Completed Questionnaire
• Summary of
comprehensive
assessment of existing
ordinance and
comparison to other
programs to be
incorporated in draft
Program Evaluation and
Recommendations Report

3.2 Participate in Grand Nexus Study and Review
Materials
Provide project oversite and review all outcomes of
Grand Nexus Study.

Advocate for the City’s objectives.

Participate in: Grand Nexus Kick Off Meeting (1),
Work in Progress Meetings (2), Model Draft Report
Group Meeting (1), One on One Meeting Specific
Findings and Recommendations (1), Affordable
Conversion Tool Meeting (1)
Ongoing –
• Timely flow of information
between Strategic
Economics and the City
• Review and comment on
Grand Nexus Study
products
• Participation in six virtual
Grand Nexus meetings
• Written notes to City to
inform and respond to
Grand Nexus Study work
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Contractor and Professional Services Agreement Page 5 of 11 Exhibit A (Rev. 9.07.21)
Activity & Description Deliverables/Objectives

3.3. Program Evaluation and Recommendations
Analysis of Key Issues: Evaluate key issues identified
in Housing Element, Program Evaluation, Grand
Nexus Study, or Community and stakeholder
outreach. Provide recommended program
modifications to advance City’s goals.

Ongoing –
• Draft Program Evaluation
and Recommendations
Report
• Report to be organized
and drafted with sections
that are similar to
standard staff reports with
the goal of enabling staff
to repurpose sections for
future staff reports.

Task 4: Revised Ordinance and Inclusionary
Housing Guidelines
Draft amendments to Ordinance and Guidelines for:
• Administrative review by the City staff and
representatives
• Public review by community members,
developers, and task force/subcommittee
• Final review and adoption by City Council
Ongoing -
• Administrative Draft
Inclusionary Housing
Ordinance and Guidelines
• Public Draft Inclusionary
Housing Ordinance and
Guidelines
• Final Draft Inclusionary
Housing Ordinance and
Guidelines
Tasks 5: Stakeholder and Community
Engagement

5.1 In coordination with City staff, develop and
implement an engagement plan identifying target
audiences and priority input areas.

5.2 Engagement Process Materials and Support

5.2 Design outreach materials and facilitation tools to engage diverse populations and synthesize key
themes. May include materials for event types such
as pop-up outreach and community meetings.

Design and develop one online survey to broaden
participation and collect measurable input EPA will
conduct survey outreach to gather responses.
• Take notes and synthesize engagement findings
on community input
4 weeks after first Study Session
• Stakeholder &
Engagement Strategy
• Online survey, associated
outreach materials for
EPA staff to distribute and
simple survey results
summary
8 weeks after first Study Session
• Other engagement
materials as defined by
the Engagement Strategy
Prior to first council hearing
Two developer focus
groups with notes
Engagement Notes from
events SLA or CPC
attends.

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Activity & Description Deliverables/Objectives
Task 6: Public Hearings and Presentations

6.1 In coordination with City staff, prepare and deliver presentations for public meetings and hearings,
including Planning Commission, City Council and
joint study sessions. Presentations will summarize
policy context (Housing Element, Grand Nexus), key
policy tradeoffs, and recommended policies, using
clear and engaging materials to support informed
discussion and consensus-building.

6.2 Present or provide support for up to five (5)
meetings, or as needed. Attend virtually.
• Conduct Council outreach which may take the
form of two (2) virtual meetings consisting of two
City Councilmembers and potentially two Planning
Commissioners for input prior to City Council
meetings; OR individual briefings with all council
members.

Ongoing -
• Presentation and
Participation in Study
Session
• Presentation and
Participation in Policy &
Action Meeting
• Presentation and
participation in Public
Hearings
• Conduct council outreach.

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Detailed Deliverables & Schedule
Deliverable Description Schedule
Research and Community Engagement (Tasks 1-6)
Timing of In-Lieu
Fee Payments
Evaluate the implications of requiring in-lieu fee
payments at Building Permit issuance versus
Certificate of Occupancy; assess impacts on
feasibility, compliance, and administrative
efficiency; provide policy recommendations to
establish clear and consistent timing standards.

Q2 2026 – Q1 2027
Establishment of a
Limiting Principle
for Alternative
Compliance
Define parameters for limiting the use of
Alternative Compliance Options, including
circumstances under which such options may be
proposed (e.g., demonstration of greater public
benefit), frequency of use across projects, and
consistency with the primary intent of the
ordinance.

Q2 2026 – Q1 2027
Affordability Levels
and Unit
Comparability /
Dispersion
Review affordability mix, unit comparability, and
dispersion requirements for inclusionary units;
evaluate whether a separate building located
within a project site may qualify as regular
compliance or alternative compliance, provided
the primary intent of the ordinance is
maintained.

Q2 2026 – Q1 2027
Stakeholder &
Community
Engagement
Design and implement engagement process
including public meetings, stakeholder sessions,
outreach forums, online surveys, and
coordination with City staff to ensure diverse
community input.

Q2 2026 – Q1 2027
Recommendations
& Best Practices
Develop policy and procedural improvement
recommendations; draft ordinance amendment
language; draft guideline amendment language,
as needed.

Q3 2026 – Q1 2027
Reporting &
Presentations
Prepare educational presentation on
inclusionary housing ordinances; prepare
comprehensive written report; present findings
to City staff, City Council, Planning Commission,
and sub committee; provide supporting
materials (data forms, surveys, sample reports).

Q1 2026 – Q2 2027
Ordinance and Guidelines Amendments (Tasks 1–6)
Analysis Report Comprehensive Program Evaluation and
Recommendations Report summarizing
findings, analysis, and recommendations.

Q2 2026 – Q1 2027
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Contractor and Professional Services Agreement Page 8 of 11 Exhibit A (Rev. 9.07.21)
Deliverable Description Schedule
Administrative
Draft Ordinance &
Guidelines
Draft inclusionary housing ordinance and
guidelines for administrative review.

Q3 2026 – Q1 2027
Public Draft
Ordinance &
Guidelines
Revised draft prepared for public review and
engagement.

Q3 2026 – Q1 2027
Final Draft
Ordinance &
Guidelines
Final ordinance and guidelines incorporating
public and City feedback.

Q3 2027
Meetings (Tasks 1, 5 & 6)
Grand Nexus
Study Meetings
Advocate for the City’s objectives at
approximately six (6) Grand Nexus Study
meetings, or as needed.

Q1 2026 – Q1 2027
Study Session Draft presentation to introduce the topic of inclusionary housing to the City Council. Present
workplan.

Q1 2026
March 24, 2026
Developer /
Stakeholder Focus
Groups
One (1) to two (2) meetings with developers and
other stakeholders to receive inclusionary
housing input and present findings and
recommendations, as needed.

Q3 2026 & Q1 2027
Community
Meetings
Notetaking
Attendance at one in person or two virtual public
meetings to note take and synthesize
community input.

Q32026-Q4 2026
Subcommittee or
Task Force
Meeting
Review findings and recommendations with
designated subcommittee or task force before
presenting to full City Council, maximum 2times,
or as needed.

Q3 2026 – Q2 2027
Policy & Action
Meeting(s)
One (1) to two (2) joint or separate Policy &
Action meeting(s) with Planning Commission
and/or City Council to review analysis and
proposed ordinance amendments, and receive
direction before working on Ordinance draft, as
needed.

Q4 2026 – Q1 2027
First Reading(s) Presentation(s) for draft Ordinance in one (1) to four (4) public hearing(s), or as needed.

Q2 2027 – Q3 2027\
Second Reading Presentation for second reading (with potential public hearing presentation)
Q1 2027 - Q2 2027
Staff Meetings Six (6) coordination meetings with City staff throughout the project monthly, or as needed
Q1 2026 – Q3 2027
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Contractor and Professional Services Agreement Page 9 of 11 Exhibit A (Rev. 9.07.21)
Schedule
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Contractor and Professional Services Agreement Page 10 of 11 Exhibit A (Rev. 9.07.21)

EXIHIBIT A
Attachment 2
Invoices
Contractor shall submit invoices to the City on a quarterly basis in accordance with the following schedule:

Invoice # Invoice Period
2026 Due Date
1 Q1 2026 (Jan–Mar 2026) April 30, 2026
2 Q2 2026 (Apr–Jun 2026) July 30, 2026*
3 Q3 2026 (Jul–Sep 2026) October 30, 2026
4 Q4 2026 (Oct–Dec 2026) January 30, 2027*
2027
5 Q1 2027 (Jan–Mar 2027) April 30, 2027
6 Q2 2027 (Apr–Jun 2027) July 30, 2027*
7 Q 3 2027 (Jul–Sep 2027) October 30, 2027
8 Q4 2027 (Oct-Dec 2027) January 30, 2028*
Total 2-Year Contract
*Please note that due to internal deadlines, staff may request early invoicing.

Please note that invoices shall be itemized and include detailed descriptions.

Contract Extensions
At least three months prior to expiration of the contract period, the Contractor shall submit a letter to [email protected] indicating its interest in extending the contract term for an additional year, and indicating whether any additional funding will be needed for the administration in the additional year. While the contract may be extended administratively with City Manager approval, any requests for additional funding allocation must be reviewed and approved by City Council.

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Contractor and Professional Services Agreement Page 11 of 11 Exhibit A (Rev. 9.07.21)
If the contract is extended for an additional one-year period, the invoicing will be as follows:

First 1-Year Contract Extension

Invoice #*

Report Period
2028
Due Date
Q1 2028 (Jan–Mar 2028)   April 30, 2028
Q2 2028 (Apr–Jun 2028)   July 30, 2028*
Q3 2028 (Jul–Sep 2028)   October 30, 2028
Q4 2028 (Oct–Dec 2028)- January 30, 2029*

If the contract is extended for an additional and final one-year period, the reporting will be as follows:

Second One-Year Contract Extension
Invoice #*

Report Period
2029
Due Date
5  Q1 2029 (Jan–Mar 2026)   April 30, 2029
6  Q2 2029 (Apr–Jun 2026)   July 30, 2029*
7  Q3 2029 (Jul–Sep 2026)   October 30, 2029
8  Q4 2029 (Oct–Dec 2026)- January 30, 2030*
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Contractor and Professional Services Agreement Page 1 of 4 Exhibit B (Rev. 9.07.21)

EXHIBIT B

COMPENSATION

1. Contractor’s Compensation.

A. City agrees to pay Contractor, at the rate(s) specified below, for those services set forth in Exhibit A of this Agreement and for all authorized reimbursable expenses, for a total not to exceed Seventy-Five Thousand Dollars and Zero Cents ($75,000).

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

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

The contractor will submit itemized invoices on quarterly basis per Attachment 2 of Exhibit A. Contractor’s billable hourly rates shall be:

Name and Role Hourly Rate
Rick Jacobus, Principal $300
Kearstin Dischinger,
Project Lead
$250
Josh Abrams, Principal $275
Kristy Wang $250
Sam Dolgoff, Project
Manager
$175
Associate/Graphic
Designer
$145
Contractor will perform the services according to the fee schedule and cost estimate below.

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Contractor and Professional Services Agreement Page 2 of 4 Exhibit B (Rev. 9.07.21)
Rick
Jacobus
Kearstin
Dischinge
r
Kristy
Wang
Sam
Dolgoff Associate Subtotoal Task Total
Principal
Project
Lead Principal
Project
Manager
Graphic
Design
300 250 250 175 145
1 3 $1,050
3 12 1 1 $4,325
Project Management 10 $2,500
Project Kick Off Meeting 1 3 1 1 $1,475
$0 $9,350
$0
Review Existing ordinance, procedures, policies and related documents. 6 2 $1,850 Review regulatory and legal environment of inclusionary. 2 $500 $0 $2,350
$0

3.1 $0
Comprehensive Assessment 6 5 $2,375

3.2 Grand Nexus Study, participate in project and review materials $0 12 $3,000
Review Grand Nexus Study preliminary and final results. 16 $4,000

3.3 Program Evaluation and Recommendations $0
Program Evaluation Report and Policy Recommendations 5 14 10 $6,750 $0 $16,125
Task 4: Revised Ordinance and Administrative Guidelines $0

4.1 Inclusionary Housing Ordinance $0
Administrative Draft Ordinance 1 12 3 $3,825
Public Draft 2 2 $850
Final Draft 1 3 3 $1,575

4.2 Administrative Guidelines update $0
Administrative Draft Guidelines 1 10 6 $3,850
Public Draft 2 2 $850
Final Draft 1 3 2 $1,400
$12,350

5.1 Design a robust engagement process 2 8 $1,900
Coordination with EPA on outreach strategy and implementation 1 6 4 $1,880

5.2 Engagement Process Materials and Support
Online survey design and development (max 2 min), digital only. 1 1 8 5 $2,625 Engagement materials and tools 2 12 24 $6,080
Staffing, one inperson or 2 virtual meetings 5 $875
Engagement Summary Notes, where consultant particpates. 2 6 $1,220

5.3 Developer Outreach Meetings (2) 5 5 $2,750
$17,330

6.1 Prepare Presentation for Study session 1 6 5 $2,675 1 2 $800
2 $500
Participate in One Study Session 4 4 $2,200
1 3 $1,050
1 2 $800
2 $500

6.2 4 10 $3,700

6.3 2 10 2 5 5 $5,200
$0 $17,425
33 163 10 88 44 $74,930 $74,930
Revise materials
Prepare one Presentation for public hearings
Discuss materials with staff
Revise materials
Four Public Hearings ( Planning Commission, City Council (2)) Counil Outreach (indvidual or two sub committee meetings) Total
Discuss materials with staff
East Palo Alto Inclusionary Housing Analysis and Update Street Level Advisors
Task 1: Project Management
Project Initiation & Set up
Project Coordination Meetings (6 meetings)
Task 2: Document Review and Policy Analysis
Task 3: Program Evaluation and Recommendations
Review and Assess East Palo Alto Inclusionary Housing Program Attend Grand Nexus Study meetings (6 virtual)
Task 5: Stakeholder and Community Engagement
Task 6: Public Hearings and Presentations
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3. Contractor’s Reimbursable Expenses.

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

4. Payments to Contractor.

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

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

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

1. Description of services billed under this invoice

2. Date of Invoice Issuance

3. Sequential Invoice Number

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

5. Social Security Number or Taxpayer Identification Number

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

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

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

5. Accounting Records of Contractor.

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

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

6. Taxes.

Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request. Contractor hereby agrees to indemnify and defend City for any claims, losses, costs, fees, liabilities, damages or injuries suffered by City arising out of Contractor’s breach of this section pursuant to the Indemnification provisions of this Agreement.

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

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Contractor and Professional Services Agreement Page 1 of 2 Exhibit C (Rev. 9.07.21)

EXHIBIT C

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

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

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

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

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

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

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

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

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

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

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

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Contractor and Professional Services Agreement Page 1 of 4 Exhibit D

EXHIBIT D
CITY OF EAST PALO ALTO’S POLICY AGAINST

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

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

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

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

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

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The policy shall not be interpreted or applied in any manner that would be inconsistent with any applicable State or Federal law or regulation, or increase the legal liability of the City.

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

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

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

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In addition to prohibiting harassment based on sex or gender, this policy also prohibits harassment based on sexual orientation, or upon any other legal protected characteristic or status, such as race, religion, creed, color, national origin, language, ancestry, physical disability, mental disability, medical condition, marital status, domestic partner, or age.

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

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

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

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

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

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

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

Upon receiving a report regarding a non-City Council member or appointee, the Personnel Officer shall conduct a prompt, full, and fair investigation, or delegate Docusign Envelope ID: C3737C52-D9A4-4E09-A6D2-2D2C584ED6CA 186
Contractor and Professional Services Agreement Page 4 of 4 Exhibit D
that responsibility to a qualified City employee or private investigator. The person performing the investigation shall:
• Interview the complainant, the accused, and any other person the investigator believe to have knowledge relevant to the charges; • Gather and review any documentary, electronic, or physical evidence relevant to the charges;
• Consult with legal counsel as needed;
• Determine whether the charges can or cannot be substantiated; and • Develop recommendations for appropriate remedial and/or disciplinary action, if any.

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

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April 27, 2026
Street Level Advisors
Attn: Rick Jacobus
1717 Webster St, Unit 1722
Oakland, CA 94612
To: [email protected]
CC: [email protected]
Subject: First Amendment to Street Level Advisors Agreement (Reso No. 95-2025) Re: Exercise to Amend Exhibit A, Attachment 1 “Scope of Work” Dear Mr. Jacobus,
The City has received a request to amend Exhibit A, Attachment 1 of the Agreement, “Scope of Work,” of the above-mentioned contract set to expire January 7, 2028, to include additional services that, while not anticipated at the time of execution, are an extension of the work already described in the Scope of Work, particularly as it relates to the ordinance.

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

Please find relevant documents attached. If you have any questions, please feel free to contact me.

Thank you,
Melvin E. Gaines, City Manager
CC: Natasha Raiburn, Interim Community & Economic Dev’t Director, [email protected]
Karen Camacho, Housing & Economic Dev’t Manager, [email protected] Yajaira Morales, Housing Project Manager, [email protected] Housing Division, [email protected]
City Attorney’s Office, [email protected]
Finance Office, [email protected]
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188
Attachments:

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

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

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

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

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The payment made to Contractor pursuant to this Agreement shall be the full and complete compensation to which Contractor and Contractor’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither Contractor nor Contractor’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of Contractor. The City shall not be required to pay any workers' compensation insurance on behalf of Contractor. Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

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

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

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

27. Law Governing. This Agreement shall in all respects be governed by the law of the State of California without regard to its conflicts of law rules. Litigation arising out of or connected with this Agreement shall be instituted and maintained in the courts of San Mateo County in the State of California or in the United States District Court, Northern District of California, San Francisco/Oakland Division, Docusign Envelope ID: C3737C52-D9A4-4E09-A6D2-2D2C584ED6CA Docusign Envelope ID: 523FB93D-75B1-8CC4-8104-1DB209D5507C 195
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California, and the parties consent to jurisdiction over their person and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts.

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

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

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

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

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

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

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

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

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

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

Street Level Advisors
LLC
By:________________________
Rick Jacobus
Principal
DATE: ____________________
18308611
East Palo Alto Business License No.

John D. Lê
City Attorney
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EXHIBIT A

SCOPE OF WORK

1. Representatives.

City Representative:

2. Services and Schedule.

3. Phased Performance.

4. Additional Services. Additional services are those services related to the scope of Services of Contractor as set forth in Exhibit A but not anticipated at the time of execution of this Agreement (“Additional Services”). Additional Services shall be provided only when authorized by an amendment to this Agreement and approved by the City Manager, or his or her designee. City reserves the right to perform any Additional Services with its own staff or to retain other Contractors to Docusign Envelope ID: C3737C52-D9A4-4E09-A6D2-2D2C584ED6CA Docusign Envelope ID: 523FB93D-75B1-8CC4-8104-1DB209D5507C 198
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perform said Additional Services. Any costs incurred due to the performance of Additional Services prior to the execution of an amendment will not be reimbursed under this Agreement or an amendment. .

Key personnel:
• Rick Jacobus, Principal, Street Level Advisors
• Kearstin Dischinger, Project Lead, Street Level Advisors • Joshua Abrams, Principal, Community Planning Collaborative • Sam Dolgoff, Project Manager, Community Planning Collaborative • Kristy Wang, Advisor, Community Planning Collaborative • Graphic Artist/Associate Planner
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1.1 Maintain close communication and coordination
with City staff via online check-in meetings monthly
(or as appropriate).

1.3 Prepare slide decks to facilitate discussions and
present updates or new findings (as appropriate).

2.1 Program Review. Review and analyze existing
City inclusionary housing ordinance, procedures,
annual fee calculation updates, and related
documents

2.2 Policy Context. Review and incorporate policy
direction from Housing Element, East Palo Alto’s
2024-28 Affordable Housing Strategy, and City
Council’s Strategic Priorities.

2.3 Legal Context. Incorporate regulatory and legal
environment analysis, including AB 1505, and the
interface of inclusionary housing with the State Law.

Ongoing –
• Summary of document
review and policy analysis
to be incorporated in draft
Program Evaluation and
Recommendations Report
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Activity & Description Deliverables/Objectives
Task 3: Program Evaluation and Data Analysis
Assess effectiveness of current inclusionary housing
requirements in producing affordable units, meeting
fair housing goals, and meeting the Housing Element
goal.

3.2 Participate in Grand Nexus Study and Review
Materials
Provide project oversite and review all outcomes of
Grand Nexus Study.

Advocate for the City’s objectives.

Participate in: Grand Nexus Kick Off Meeting (1),
Work in Progress Meetings (2), Model Draft Report
Group Meeting (1), One on One Meeting Specific
Findings and Recommendations (1), Affordable
Conversion Tool Meeting (1)
Ongoing –
• Timely flow of information
between Strategic
Economics and the City
• Review and comment on
Grand Nexus Study
products
• Participation in six virtual
Grand Nexus meetings
• Written notes to City to
inform and respond to
Grand Nexus Study work
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Activity & Description Deliverables/Objectives

5.1 In coordination with City staff, develop and
implement an engagement plan identifying target
audiences and priority input areas.

5.2 Engagement Process Materials and Support

5.2 Design outreach materials and facilitation tools to engage diverse populations and synthesize key
themes. May include materials for event types such
as pop-up outreach and community meetings.

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Activity & Description Deliverables/Objectives
Task 6: Public Hearings and Presentations

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Detailed Deliverables & Schedule
Deliverable Description Schedule
Research and Community Engagement (Tasks 1-6)
Timing of In-Lieu
Fee Payments
Evaluate the implications of requiring in-lieu fee
payments at Building Permit issuance versus
Certificate of Occupancy; assess impacts on
feasibility, compliance, and administrative
efficiency; provide policy recommendations to
establish clear and consistent timing standards.

Q2 2026 – Q1 2027
Recommendations
& Best Practices
Develop policy and procedural improvement
recommendations; draft ordinance amendment
language; draft guideline amendment language,
as needed.

Q1 2026 – Q2 2027
Ordinance and Guidelines Amendments (Tasks 1–6)
Analysis Report Comprehensive Program Evaluation and
Recommendations Report summarizing
findings, analysis, and recommendations.

Q2 2026 – Q1 2027
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Deliverable Description Schedule
Administrative
Draft Ordinance &
Guidelines
Draft inclusionary housing ordinance and
guidelines for administrative review.

Q3 2026 – Q1 2027
Public Draft
Ordinance &
Guidelines
Revised draft prepared for public review and
engagement.

Q3 2026 – Q1 2027
Final Draft
Ordinance &
Guidelines
Final ordinance and guidelines incorporating
public and City feedback.

Q3 2027
Meetings (Tasks 1, 5 & 6)
Grand Nexus
Study Meetings
Advocate for the City’s objectives at
approximately six (6) Grand Nexus Study
meetings, or as needed.

Q1 2026 – Q1 2027
Study Session Draft presentation to introduce the topic of inclusionary housing to the City Council. Present
workplan.

Q3 2026 & Q1 2027
Community
Meetings
Notetaking
Attendance at one in person or two virtual public
meetings to note take and synthesize
community input.

Q32026-Q4 2026
Subcommittee or
Task Force
Meeting
Review findings and recommendations with
designated subcommittee or task force before
presenting to full City Council, maximum 2times,
or as needed.

Q4 2026 – Q1 2027
First Reading(s) Presentation(s) for draft Ordinance in one (1) to four (4) public hearing(s), or as needed.

Q2 2027 – Q3 2027\
Second Reading Presentation for second reading (with potential public hearing presentation)
Q1 2027 - Q2 2027
Staff Meetings Six (6) coordination meetings with City staff throughout the project monthly, or as needed
Q1 2026 – Q3 2027
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Contractor and Professional Services Agreement Page 9 of 11 Exhibit A (Rev. 9.07.21)
Schedule
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Contractor and Professional Services Agreement Page 10 of 11 Exhibit A (Rev. 9.07.21)

EXIHIBIT A
Attachment 2
Invoices
Contractor shall submit invoices to the City on a quarterly basis in accordance with the following schedule:

Please note that invoices shall be itemized and include detailed descriptions.

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Contractor and Professional Services Agreement Page 11 of 11 Exhibit A (Rev. 9.07.21)
If the contract is extended for an additional one-year period, the invoicing will be as follows:

First 1-Year Contract Extension

Invoice #*

If the contract is extended for an additional and final one-year period, the reporting will be as follows:

Second One-Year Contract Extension
Invoice #*

Report Period
2029
Due Date
5  Q1 2029 (Jan–Mar 2026)   April 30, 2029
6  Q2 2029 (Apr–Jun 2026)   July 30, 2029*
7  Q3 2029 (Jul–Sep 2026)   October 30, 2029
8  Q4 2029 (Oct–Dec 2026)- January 30, 2030*
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Contractor and Professional Services Agreement Page 1 of 4 Exhibit B (Rev. 9.07.21)

EXHIBIT B

COMPENSATION

1. Contractor’s Compensation.

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

The contractor will submit itemized invoices on quarterly basis per Attachment 2 of Exhibit A. Contractor’s billable hourly rates shall be:

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Contractor and Professional Services Agreement Page 2 of 4 Exhibit B (Rev. 9.07.21)
Rick
Jacobus
Kearstin
Dischinge
r
Kristy
Wang
Sam
Dolgoff Associate Subtotoal Task Total
Principal
Project
Lead Principal
Project
Manager
Graphic
Design
300 250 250 175 145
1 3 $1,050
3 12 1 1 $4,325
Project Management 10 $2,500
Project Kick Off Meeting 1 3 1 1 $1,475
$0 $9,350
$0
Review Existing ordinance, procedures, policies and related documents. 6 2 $1,850 Review regulatory and legal environment of inclusionary. 2 $500 $0 $2,350
$0

3.1 $0
Comprehensive Assessment 6 5 $2,375

3.2 Grand Nexus Study, participate in project and review materials $0 12 $3,000
Review Grand Nexus Study preliminary and final results. 16 $4,000

3.3 Program Evaluation and Recommendations $0
Program Evaluation Report and Policy Recommendations 5 14 10 $6,750 $0 $16,125
Task 4: Revised Ordinance and Administrative Guidelines $0

4.1 Inclusionary Housing Ordinance $0
Administrative Draft Ordinance 1 12 3 $3,825
Public Draft 2 2 $850
Final Draft 1 3 3 $1,575

4.2 Administrative Guidelines update $0
Administrative Draft Guidelines 1 10 6 $3,850
Public Draft 2 2 $850
Final Draft 1 3 2 $1,400
$12,350

5.1 Design a robust engagement process 2 8 $1,900
Coordination with EPA on outreach strategy and implementation 1 6 4 $1,880

5.3 Developer Outreach Meetings (2) 5 5 $2,750
$17,330

6.1 Prepare Presentation for Study session 1 6 5 $2,675 1 2 $800
2 $500
Participate in One Study Session 4 4 $2,200
1 3 $1,050
1 2 $800
2 $500

6.2 4 10 $3,700

6.3 2 10 2 5 5 $5,200
$0 $17,425
33 163 10 88 44 $74,930 $74,930
Revise materials
Prepare one Presentation for public hearings
Discuss materials with staff
Revise materials
Four Public Hearings ( Planning Commission, City Council (2)) Counil Outreach (indvidual or two sub committee meetings) Total
Discuss materials with staff
East Palo Alto Inclusionary Housing Analysis and Update Street Level Advisors
Task 1: Project Management
Project Initiation & Set up
Project Coordination Meetings (6 meetings)
Task 2: Document Review and Policy Analysis
Task 3: Program Evaluation and Recommendations
Review and Assess East Palo Alto Inclusionary Housing Program Attend Grand Nexus Study meetings (6 virtual)
Task 5: Stakeholder and Community Engagement
Task 6: Public Hearings and Presentations
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Contractor and Professional Services Agreement Page 3 of 4 Exhibit B (Rev. 9.07.21)

3. Contractor’s Reimbursable Expenses.

4. Payments to Contractor.

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

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

1. Description of services billed under this invoice

2. Date of Invoice Issuance

3. Sequential Invoice Number

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

5. Social Security Number or Taxpayer Identification Number

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

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

5. Accounting Records of Contractor.

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Contractor and Professional Services Agreement Page 4 of 4 Exhibit B (Rev. 9.07.21)
The obligations of Contractor under this section shall survive this Agreement.

6. Taxes.

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Contractor and Professional Services Agreement Page 1 of 2 Exhibit C (Rev. 9.07.21)

EXHIBIT C

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

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

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Contractor and Professional Services Agreement Page 1 of 4 Exhibit D

EXHIBIT D
CITY OF EAST PALO ALTO’S POLICY AGAINST

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

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

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

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

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

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

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

Upon receiving a report regarding a non-City Council member or appointee, the Personnel Officer shall conduct a prompt, full, and fair investigation, or delegate Docusign Envelope ID: C3737C52-D9A4-4E09-A6D2-2D2C584ED6CA Docusign Envelope ID: 523FB93D-75B1-8CC4-8104-1DB209D5507C 217
Contractor and Professional Services Agreement Page 4 of 4 Exhibit D
that responsibility to a qualified City employee or private investigator. The person performing the investigation shall:
• Interview the complainant, the accused, and any other person the investigator believe to have knowledge relevant to the charges; • Gather and review any documentary, electronic, or physical evidence relevant to the charges;
• Consult with legal counsel as needed;
• Determine whether the charges can or cannot be substantiated; and • Develop recommendations for appropriate remedial and/or disciplinary action, if any.

FIRST AMENDMENT TO

AGREEMENT BETWEEN

CITY OF EAST PALO ALTO
AND

STREET LEVEL ADVISORS
(SLA)
This First Amendment to the Principal Agreement made and entered into on Janurary 7, 2026 hereafter referred to as Agreement, between Street Level Advisors, LLC, therein referred to as Contractor, and the City of East Palo Alto, a municipal corporation, therein referred to as City, is made and dated for reference this 16th day of December, 2025.

Contractor and City do mutually agree as follows:

1. Replaced Exhibit A, Attachment 1. Exhibit A, Attachment 1 of the Principal Agreement, which sets forth the services to be provided pursuant to the Principal Agreement is hereby removed and replaced to include the services as set forth in Exhibit A of this Amendment.

2. Integration. This Amendment, including all exhibits, if any, contains the entire agreement between the parties and supersedes whatever oral or written understanding they may have had prior to the execution of this Amendment. This Amendment shall not be amended or modified except by a written agreement executed by each of the parties hereto. Except as specifically revised herein, all terms and conditions of the Agreement, and all prior amendments, if any, shall remain in full force and effect, and Contractor shall perform all duties, obligations and conditions required under the Agreement.

3. Inconsistencies. In the event of any conflict or inconsistency between the provisions of this Amendment and the Agreement, and any prior amendment, if any, the provisions of this Amendment shall control in all respects.

4. Ambiguities. The parties acknowledge that they have had the opportunity to have this Amendment reviewed by their respective legal counsel, and that the terms and conditions of this Amendment are not to be construed against any party on the basis of such party's draftsmanship thereof.

5. Counterparts. This Amendment may be executed by the parties in one or more counterparts all of which collectively shall constitute one document and agreement.

6. Facsimile Signature; Electronic Signature. This Amendment shall be binding upon the receipt of facsimile signatures or e-mailed by PDF or otherwise. Any person transmitting his or her signature by facsimile or electronically shall promptly send an original signature to the other party pursuant to the notice provision of the Agreement.

The failure to send an original shall not affect the binding nature of this Amendment.

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7. Authority. The person signing this Amendment for Contractor hereby represents and warrants that he or she is fully authorized to sign this Amendment on behalf of Contractor.

IN WITNESS WHEREOF, the parties have entered into this First Amendment on the day and year first hereinabove appearing.
[Signatures on the following page]
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Street Level Advisors
LLC
By:

Rick Jacobus
Principal
DATE: ____________________
FEDERAL I.D. #: ____________
East Palo Alto Business License No.

John D. Lê
City Attorney
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5/5/2026
47-5501079
5/5/2026
5/19/2026
5/27/2026
221

EXHIBIT A

1.1 Maintain close communication and coordination
with City staff via online check-in meetings monthly
(or as appropriate).

1.3 Prepare slide decks to facilitate discussions and
present updates or new findings (as appropriate).

2.1 Program Review. Review and analyze existing
City inclusionary housing ordinance, procedures,
annual fee calculation updates, and related
documents

2.2 Policy Context. Review and incorporate policy
direction from Housing Element, East Palo Alto’s
2024-28 Affordable Housing Strategy, and City
Council’s Strategic Priorities.

2.3 Legal Context. Incorporate regulatory and legal
environment analysis, including AB 1505, and the
interface of inclusionary housing with the State Law.

Ongoing –
• Summary of document
review and policy analysis
to be incorporated in draft
Program Evaluation and
Recommendations Report
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Activity & Description Deliverables/Objectives
Task 3: Program Evaluation and Data Analysis
Assess effectiveness of current inclusionary housing
requirements in producing affordable units, meeting
fair housing goals, and meeting the Housing Element
goal.

3.2 Participate in Grand Nexus Study and Review
Materials
Provide project oversite and review all outcomes of
Grand Nexus Study.

Advocate for the City’s objectives.

Task 4: Revised Ordinance Inclusionary Housing
Draft amendments to Ordinance for:
• Administrative review by the City staff and
representatives
• Public review by community members,
developers, and task force/subcommittee
Ongoing -
• Administrative Draft
Inclusionary Housing
Ordinance
• Public Draft Inclusionary
Housing Ordinance Final
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EXHIBIT A
Activity & Description Deliverables/Objectives
• Final review and adoption by City Council Draft Inclusionary Housing Ordinance
Tasks 5: Developer Engagement
• Take notes and synthesize engagement findings
on developer focus groups.

Prior to first council hearing
Two developer focus
groups with notes
Task 6: Public Hearings and Presentations

Task 7. Develop a Temporary Housing
Development Incentive Program

7.1 Draft and Final Ordinance, staff report and related

7.2 Hearing materials and presentation.

Presentation and Participation in
Public Hearings
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Detailed Deliverables & Schedule
Deliverable Description Schedule
Research and Community Engagement (Tasks 1-6)
Timing of In-Lieu
Fee Payments
Evaluate the implications of requiring in-lieu fee
payments at Building Permit issuance versus
Certificate of Occupancy; assess impacts on
feasibility, compliance, and administrative
efficiency; provide policy recommendations to
establish clear and consistent timing standards.

Q2 2026 – Q1 2027
Temporary
Housing
Development
Incentive Program
Develop and present a Temporary Housing
Development Incentive Program for Council
Consideration.

Q2 2026 – Q1 2027
Developer
Engagement
Developer Outreach. Q2 2026 – Q1 2027
Recommendations
& Best Practices
Develop policy and procedural improvement
recommendations; draft ordinance amendment
language; as needed.

Q1 2026 – Q2 2027
Ordinance and Guidelines Amendments (Tasks 1–6)
Analysis Report Comprehensive Program Evaluation and
Recommendations Report summarizing
findings, analysis, and recommendations.

Q2 2026 – Q1 2027
Administrative
Draft Ordinance
Draft inclusionary housing ordinance for
administrative review.

Q3 2026 – Q1 2027
Public Draft
Ordinance
Revised draft prepared for public review and
engagement.

Q3 2026 – Q1 2027
Final Draft
Ordinance
Final ordinance incorporating public and City
feedback.

Q3 2027
Meetings (Tasks 1, 5 & 6)
Grand Nexus
Study Meetings
Advocate for the City’s objectives at
approximately six (6) Grand Nexus Study
meetings, or as needed.

Q1 2026 – Q1 2027
Study Session Draft presentation to introduce the topic of inclusionary housing to the City Council. Present
workplan.

Q1 2026
March 24, 2026
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EXHIBIT A
Deliverable Description Schedule
Developer /
Stakeholder Focus
Groups
One (1) to two (2) meetings with developers and
other stakeholders to receive inclusionary
housing input and present findings and
recommendations, as needed.

Q3 2026 & Q1 2027
Policy & Action
Meeting(s)
One (1) to two (2) joint or separate Policy &
Action meeting(s) with Planning Commission
and/or City Council to review analysis and
proposed ordinance amendments, and receive
direction before working on Ordinance draft, as
needed.

Q4 2026 – Q1 2027
First Reading(s) Presentation(s) for draft Ordinance in one (1) to four (4) public hearing(s), or as needed.

Q2 2027 – Q3 2027
Second Reading Presentation for second reading (with potential public hearing presentation)
Q1 2027 - Q2 2027
Staff Meetings Six (6) coordination meetings with City staff throughout the project monthly, or as needed
Q1 2026 – Q3 2027
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Resolution No. XX-2025 1 of 2
RESOLUTION NO. XX– 2026

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDMENT TO

THE AGREEMENT WITH STREET LEVEL ADVISORS IN UPDATING THE

INCLUSIONARY HOUSING ORDINANCE (IHO) AND GUIDELINES
WHEREAS, on November 19, 2019, the City Council of the City of East Palo Alto (“City Council”) adopted Ordinance No. 425 (“IHO”), adding Chapter 18.37 – Inclusionary Housing to the City of East Palo Alto Municipal Code; and
WHEREAS, on October 21, 2025, the City Council authorized execution of a Memorandum of Understanding (“MOU”) with Community Planning Collaborative (“CPC”) and Strategic Economics and for the City to participate in the 21 Elements Multi-Jurisdictional Grand Nexus and Feasibility Study (“Grand Nexus”); and
WHEREAS, on that same date, the Council also allocated $75,000 in FY 2025-26 to hire a thirdparty consultant to assist with this policy analysis and update process; and WHEREAS, the City released a request for proposals (RFP) on October 1, 2025, seeking qualified consultants to conduct a comprehensive review and update of the Inclusionary Housing Ordinance and guidelines; and
WHEREAS, the City of East Palo Alto received three proposals in response to the RFP by the October 27, 2025, deadline and staff interviewed all respondents on October 30, 2025; and WHEREAS, after careful review, City staff recommend contracting with Street Level Advisors (SLA), in partnership with the Community Planning Collaborative (CPC), to provide project oversight and analysis of the Grand Nexus Study results, review, evaluate, and recommend improvements to the City’s IHO and program guidelines, and conduct robust community and stakeholder outreach; and WHEREAS, on December 16, 2025, the City Council approved a contract with SLA in the amount not to exceed $75,000 and with two one-year extensions at the sole discretion of the City Manager to provide project management and the updating of the Inclusionary Housing Ordinance (“IHO”) and guidelines; and
WHEREAS, on March 24, 2026, during the study session to review the current Inclusionary Housing Ordinance, Council directed staff to come back with a Temporary Housing Development Incentive Program (THDIP) and staff requested additional assistance from SLA; and WHEREAS, SLA indicated that this work constituted a new task and therefore a first amendment to the contract was made to reduce outreach activities and costs and amend the scope of work to increase hearing costs (without amending to total contract amount); and WHEREAS, on June 9, 2026, SLA along with the City’s Housing Division team presented a THDIP, but the City Council did not introduce the ordinance; and 229
Resolution No. XX-2025 2 of 2
WHEREAS, the Mayor requested for this item to be put back in the agenda for July 7, 2026, and, therefore, staff requested that SLA participate in the public hearing for added expertise and technical support; and
WHEREAS, SLA requested a new amendment to the contract to add $13,300, for a new contract total amount of $88,300.

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. Appropriate an additional $13,300 from the Housing In Lieu Fund (Fund 207) and authorize the City Manager to amend the agreement with Street Level Advisors to add $13,300 for a new total not-to-exceed amount of $88,300; 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 7
th day of July 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
230
PUBLIC HEARING ITEM 9.2

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Shiri Klima, Assistant City Manager
SUBJECT: Resolution Determining Necessity for, and Introduction (First Reading) of an Ordinance Ordering Submission to the Voters of, a General Obligation Bond Measure for Civic, Recreational, Water, and Stormwater Improvements at the November 3, 2026, Consolidated General Election
Recommendation
Staff recommends that the City Council take the following actions:

2. Introduce, waive the first reading of, and set for second reading and adoption on July 21, 2026, an ordinance ordering the submission to the qualified voters of the City, at the November 3, 2026, consolidated general election, of a proposition authorizing the City to incur general obligation bonded indebtedness in a principal amount not to exceed $125,000,000 (the ordinance requires a two-thirds vote of all members for adoption).

Executive Summary
Through EPA Talks 2026 and extensive community engagement and outreach effort and independently conducted scientific surveys, staff recommend that the City Council initiate proceedings to place a $125,000,000 general obligation (GO) bond measure on the November 3, 2026, consolidated general election ballot. The bonds would finance a single, unified program of municipal improvements: a civic center (an approximately 100,000-square-foot building housing a public library approximately three times the size of our current library, community spaces, and City Hall, as well as an approximately 20,000-square-foot police department facility with an Emergency Operations Center), recreational facilities and park improvements (including 231
PUBLIC HEARING ITEM 9.2
a track and field facility), and water and stormwater system infrastructure.

The measure must be approved by two-thirds of the voters voting on it. If approved, debt service would be repaid solely from an ad valorem property tax estimated to average $105.26 per $100,000 of assessed value; the general obligation bonds would not obligate the General Fund.

The proposed bond measure is one component of the City's overall financing plan for the Civic Center project. The estimated total project cost is approximately $170,000,000, consisting of approximately $120,000,000 for the Civic Center (Library, City Hall, Community Center and related facilities), $20,000,000 for the Police Department and Emergency Operations Center, and $30,000,000 for the Civic Center Park and Track and Field.

The City anticipates that approximately ten acres on Pulgas Avenue (combined estimated value of approximately $29,000,000) will be donated, and the City is pursuing approximately $21,000,000 in additional private contributions and approximately $10,000,000 in local, state and federal grants toward the civic center. A donation agreement for the land is currently in negotiation and drafting phase, and as such a draft agreement cannot be disclosed at this juncture. Various donors have pledged funds to the project, and the City is receiving contributions through a fund at the Silicon Valley Community Foundation. Neither the bonds nor the improvements are contingent on those donations or grants.

As it currently stands, staff's financing plan for the park and Civic Center contemplates funding these improvements from multiple sources, including $90,000,000 in GO bonds, approximately $29,000,000 in donated land for the park and Civic Center, a $20,000,000 General Fund commitment previously included in the City's budget, and approximately $21,000,000 in anticipated private donations.. Staff continues to pursue private donations and grant opportunities. The City Council may also appropriate additional funds from the General Fund Reserve or other sources.

Bond proceeds will also be used to fund infrastructure improvements. GO bonds will be used to directly fund or supplement grant funds that partially cover Capital Improvement Plan (CIP) infrastructure projects. Staff continues to explore, grants, and other financing opportunities for infrastructure projects. These financing plans will continue to be refined as the projects advance.

Tonight’s actions—adopting the Resolution Determining Necessity (two-thirds vote) and introducing the Ordinance Ordering Submission (first reading)—begin the statutory process. The ordinance’s second reading and the Resolution Calling the Election are scheduled for July 21, 2026, and the certified documents must be filed with San Mateo County before the August 7, 2026, consolidation deadline.

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

Priority: Governance, Organizational Strength, and Fiscal Sustainability 232
PUBLIC HEARING ITEM 9.2
Priority: Parks, Recreation, and Community Facilities
Priority: Public Health, Safety, and Quality of Life
Priority: Public Infrastructure and Utilities
Background
Through engagement efforts, including EPATalks, the City has heard plenty of concerns articulated about our public library as it is dated and often cramped. Additionally, in a recent survey, East Palo Alto residents identified the following as five of their top City priorities (not necessarily in this order) such as:
 Providing safe and clean drinking water.
 Providing safe places for children and teens.
 Replacing deteriorating pipes that distribute drinking water.  Providing an Emergency Operations Center ensuring a safe space in East Palo Alto no matter the emergency.
 Repairing aging storm drains to prevent flooding on City streets.

The State has also articulated concerns about the City’s water storage capacity, particularly in the case of an emergency.

The City has identified significant long-term capital needs that cannot be funded within its annual operating budget or reserves. This includes the replacement and expansion of public-safety and civic facilities, parks and recreation facilities, and water and stormwater infrastructure projects.

Currently, the City has a unique opportunity to receive an estimated $50 million in private land and cash donations to construct a Civic Center and park; however, the City must raise funds to finance the remainder of the estimated $170 million project. Additionally, the City has over $100 million in infrastructure projects in its CIP and aims to use $35 million in General Obligation (GO) bonds to advance drinking water and storm water projects.

General obligation bonds—repaid through a voter-approved ad valorem property tax—are a customary method for California cities to finance the acquisition and improvement of real property for these purposes.

As a general law city, East Palo Alto is authorized to issue general obligation bonds under the Municipal Improvement Act of 1901 (Government Code sections 43600 et seq.) and, as an additional and alternative method, under Article 4.5 (Government Code sections 53506 et seq.).

The California Constitution permits the City to incur such indebtedness, and to levy the ad valorem tax to repay it, only with the assent of two-thirds of the voters voting on the proposition (Cal. Const. art. XVI, § 18; art. XIII A, § 1(b)).

Issuing general obligation bonds requires a sequence of legislative actions before the measure may be placed on the ballot: (1) adoption, by a two-thirds vote of all members, of a resolution determining that the public interest and necessity demand the improvements and their financing; (2) adoption, by a two-thirds vote, of an ordinance ordering submission of the proposition to the voters; and (3) adoption of a resolution calling the election and requesting consolidation with the 233
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County election. The City has retained Urban Futures, Inc. as municipal advisor and Anzel Galvan LLP as bond and disclosure counsel to assist with these proceedings.

Staff proposes placing the measure on the November 3, 2026, consolidated general election conducted by San Mateo County. To satisfy the County’s consolidation requirements, the certified election documents must be received by the County no later than August 7, 2026.

Accordingly, staff recommends that the City Council adopt the Resolution Determining Necessity and introduce the Ordinance at its July 7, 2026, meeting, with the ordinance’s second reading and the Resolution Calling the Election scheduled for July 21, 2026.

Analysis
The proposed bonds would finance a single, unified plan and program of municipal improvements consisting of: (a) a civic center on approximately four acres on Pulgas Avenue, including an approximately 100,000-square-foot building to house a public library three times the size of our current library, City Hall, and related community-serving facilities and an approximately 20,000-square-foot police department facility with an emergency operations center; (b) a new park with a track and field on approximately six acres on Pulgas Avenue; (c) water system infrastructure; and (d) stormwater system infrastructure.

The General Obligation bonds are intended to finance one portion of the City's broader Civic Center funding strategy. The estimated overall project budget is approximately $170,000,000, allocated as follows:

The City's current financing strategy consists of:

The General Fund commitment of $20,000,000 was previously included in the City's budget, and staff continues to pursue additional private fundraising and other financing opportunities (including but not limited to applying for local, state, and federal grants) to close the remaining funding gap. As the project advances, staff will continue refining the financing plan and will return to the City Council as appropriate.

The Resolution Determining Necessity reflects the statutory findings that the estimated cost of the improvements will require an expenditure greater than the amount that can be raised by the City’s annual tax levy, and that the principal amount of the bonds will not exceed the estimated cost of the improvements. Adoption of that resolution by a two-thirds vote of all members is the Project Estimated Cost
Civic Center (City Hall, Library, Community Center) $120 million Police Department and Emergency Operations Center $20 million Civic Center Park and Track & Field $30 million
Total $170 million
Funding Source Amount
General Obligation Bonds $90 million
Donated Park Land $29 million
General Fund Commitment $20 million
Anticipated Private Donations $21 million
Remaining Funding Need $10 million
Total $170 million
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predicate for the ordinance ordering submission of the measure to the voters.

If two-thirds of the voters voting on the measure approve it, the City may issue up to $125,000,000 in general obligation bonds. Consistent with article XIII A, section 1(b)(2) of the California Constitution, bond proceeds may be applied only to the acquisition or improvement of real property (including fixtures and equipment that constitute improvements to real property), together with incidental costs of issuance and of the election; proceeds may not be used for general operating expenses.

The Ordinance incorporates the accountability measures required by Government Code sections 53410 and 53411: bond proceeds will be used only for the specified purposes, will be deposited into a separate account held by the City, will be the subject of an annual report by the Director of Finance, and will be subject to an annual independent financial audit.

The City anticipates that the approximately ten acres on Pulgas Avenue (combined estimated value of approximately $29,000,000) will be donated. The donation agreement is currently in its drafting and negotiation phase. Accordingly, a draft agreement cannot be disclosed at this juncture. The City is also seeking approximately $21,000,000 in additional private contributions toward the civic center. Various donors have pledged funds to the project, and the City is receiving contributions through a fund at the Silicon Valley Community Foundation. Neither the bonds nor the improvements are contingent on those donations or grants.

If the City Council adopts the Resolution Determining Necessity and introduces the Ordinance as recommended, staff will return to the City Council on July 21, 2026, with a recommendation to pass the Ordinance and adopt a Resolution Calling the Election on the proposed bond measure. The Resolution Calling the Election will include an abbreviated form of the ballot measure for City Council approval.

Fiscal Impact
Placing the measure on the November 3, 2026, consolidated ballot will result in election costs charged by San Mateo County for a consolidated local measure. The precise amount (of the City Council elections plus two ballot measures) is set by the County and is currently estimated at anywhere from $78,000 to $93,600; these costs are payable from the General Fund and will be budgeted accordingly. Costs of preparing the measure (municipal advisor and bond and disclosure counsel) are payable under the professional services agreements authorized in connection with this item.

The general obligation bonds do not obligate the General Fund. If the measure is approved by two-thirds of the voters, the bonds would be repaid solely from a voter-approved ad valorem property tax levied on taxable property in the City, estimated to average $105.26 per $100,000 of assessed value. The estimated cost of the improvements, the maximum principal amount ($125,000,000), the highest and average annual tax rates, the duration of the tax, and total debt service will be set forth in the Tax Rate Statement. Upon adoption of the Ordinance, the City Manager and Director of Finance, each acting alone, will be authorized to finalize and execute 235
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the Tax Rate Statement, and to file the Tax Rate Statement with the San Mateo County Registrar of Voters.

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.

In addition, if the City Council decides to proceed with the proposed bond measure, after adoption the Ordinance will be published as required by Government Code section 43611 (once a day for at least seven days, or once a week for two weeks, in a qualifying newspaper, with first publication within 15 days after adoption), and the City Clerk will publish a synopsis of the measure and cause notice of the election to be given as required by the Elections Code.

Finally, publication customary for ordinances, including the bond ordinance, will occur.

Environmental
The action being considered by the City Council—determining necessity for, and ordering submission to the voters of, a general obligation bond proposition—is not a “project” subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15378(b)(4), because it is the creation of a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical effect on the environment.

If the measure is approved by the voters, the City will conduct any environmental review required under CEQA for the specific improvements to be financed before the City commits to or carries out those improvements.

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

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Resolution Determining Necessity

2. Ordinance Ordering Submission of the Proposition (with Exhibit A – Full Text of the Measure)

3. Tax Rate Statement
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Working Draft
RESOLUTION NO. XX– 2026

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY DEMAND THE

ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN MUNICIPAL

IMPROVEMENT PROJECTS, AND THEIR FINANCING THROUGH THE ISSUANCE OF

GENERAL OBLIGATION BONDS
WHEREAS, the City of East Palo Alto (the “City”) is authorized to issue general obligation bonds to finance municipal improvements pursuant to certain provisions of the California Government Code, including Article 1, commencing with Section 43600, of Chapter 4 of Division 4 of Title 4 and Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 (collectively, the “Bond Law”); and
WHEREAS, under Section 18 of Article XVI and Section 1(b) of Article XIII A of the California Constitution, the City may issue general obligation bonds (“Bonds”) under and pursuant to the Bond Law, and levy ad valorem taxes to repay them, only with the assent of two-thirds of the voters voting on the proposition; and
WHEREAS, the City intends to issue Bonds under and pursuant to the Bond Law to finance the cost of the acquisition, construction and improvement of certain property to be used for municipal purposes (the “Improvements”), consisting of the following: (a) acquisition of approximately four (4) acres of real property located on Pulgas Avenue (or any other real property in the City) and the construction of a civic center thereon consisting of (i) an approximately 20,000 square foot police department facility, including an emergency operations center, and (ii) an approximately 100,000 square foot building to house a public library, City Hall, and related civic and community-serving facilities; (b) acquisition of approximately six (6) acres of real property located on Pulgas Avenue (or any other real property in the City) and the construction and development of recreational facilities and park improvements thereon, including, but not limited to, a track and field facility and related park amenities; (c) design, acquisition, construction, reconstruction, replacement, expansion, improvement, and equipping of water system infrastructure projects identified in the City’s capital improvement program, applicable water system master plans and as may otherwise be approved from time to time by the City Council consistent with the purposes described in this clause (c), including, but not limited to, water storage facilities, water mains and distribution pipelines, and related facilities and improvements necessary to improve system reliability, capacity, resiliency, and long-term service delivery; and (d) design, acquisition, construction, reconstruction, replacement, expansion, improvement, and equipping of stormwater system infrastructure projects identified in the City’s capital improvement program and applicable stormwater system master plans and as may otherwise be approved from time to time by the City Council consistent with the purposes described in this clause (d), including, but not limited to, storm drains and related facilities and improvements necessary to improve drainage capacity, flood protection, water quality, and system reliability; and WHEREAS, through EPA Talks 2026 and extensive community engagement and outreach effort and independently conducted scientific surveys the community has expressed the following:
 East Palo Alto lacks safe places for youth to spend time in the community after school and during the summer, and the City needs to be able to invest in the future of our youth by providing dedicated spaces for children and youth to play and gather, helping keep them safe and out of trouble; and
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 The East Palo Alto Library has not been significantly renovated in 40 years, and other City buildings have leaky roofs, faulty heating and cooling systems, and outdated electrical wiring; and
 The East Palo Alto Library is outdated, deteriorating, and overcrowded, with wait lists for literacy and children's programming due to a lack of space, and the City's vision is for a modern library with up-to-date technology, hands-on learning and maker spaces, and dedicated areas for children and teens so they have somewhere safe to go after school and during the summer; and
 East Palo Alto residents identified providing safe and clean drinking water, replacing deteriorating pipes that distribute drinking water, providing safe places for children and teens, repairing aging storm drains to prevent flooding on City streets, and providing an Emergency Operations Center to ensure there is a safe place in East Palo Alto no matter the emergency as among the community's highest priorities; and WHEREAS, funding for City facilities will allow East Palo Alto to provide an Emergency Operations Center in case of natural disaster and a refuge during periods of extreme heat, cold, or smoke, while also serving as the City's emergency operations center to coordinate emergency response when disasters occur; and
WHEREAS, East Palo Alto was incorporated as its own city in the 1980s, yet still does not have its own community center, police station, or library, and by creating the East Palo Alto Civic Center, the City can strengthen self-determination, local control over its destiny, and a deeper connection within the community without relying on County, State, or Federal facilities; andWHEREAS, the Improvements constitute a single, unified program of municipal improvements; and WHEREAS, the City estimates the cost of the Improvements to total $205,000,000, consisting of (i) approximately $20,000,000 for the police department facility, including an emergency operations center, (ii) approximately $120,000,000 for the public library, City Hall, and related civic and communityserving facilities, (iii) approximately $30,000,000 for recreational facilities and park improvements, and (iv) approximately $35,000,000 for water system and stormwater system infrastructure projects; and WHEREAS, existing funds and funding sources are inadequate to finance the Improvements; and
WHEREAS, the City may have the opportunity to leverage private donations and state and federal grants to finance the Improvements; and
WHEREAS, the owner of approximately four (4) acres of real property located on Pulgas Avenue described in clause (a) above has indicated its intent to donate said property to the City if the issuance of the Bonds is approved by two-thirds of all voters voting on the proposition, and the City expects to construct said civic center thereon; andWHEREAS, the owner of approximately six (6) acres of real property located on Pulgas Avenue described in clause (b) above has indicated its intent to donate said property to the City if the issuance of the Bonds is approved by two-thirds of all voters voting on the proposition, and the City expects to construct and develop said recreational facilities and park improvements thereon; and WHEREAS, the combined estimated value of said approximately ten (10) acres of real property is approximately $29,000,000, leaving $176,000,000 in estimated Improvement costs to be funded with other sources; and
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WHEREAS, the City intends to finance the remaining $176,000,000 in estimated Improvement costs through the issuance of the Bonds ($125,000,000), funds on hand in the City’s General Fund ($20,000,000 expected to be appropriated), private cash donations ($21,000,000 goal), and local, state and federal grants ($10,000,000 goal); and
WHEREAS, the City’s goal is to raise $21,000,000 through private cash donations and $10,000,000 in state and federal grants, and to restrict said donations and grants to financing the civic center; and
WHEREAS, the City has not entered into any agreement providing for any of said donations or grants, no assurance can be given that any of said donations or grants will be received by the City, and neither the issuance of the Bonds nor the undertaking of the Improvements is contingent upon receipt thereof; and
WHEREAS, said donations and grants are expected to be restricted to the purposes hereinbefore described, and the City does not expect to receive them if the issuance of the Bonds is not approved by two-thirds of all the voters voting on the proposition; and WHEREAS, to the extent any such expected donations of real property are not received by the City, the proposed municipal improvements to be financed include the acquisition of real property therefor with proceeds of the Bonds; and
WHEREAS, in order to initiate proceedings under the Bond Law to provide for the issuance of general obligation bonds, the City Council of the City (the “City Council”) must make certain findings and determinations;

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

1. Declaration of Necessity to Issue Bonds. The public interest and necessity demand, and it is the intention of the City Council to require, the acquisition, construction and improvement of the Improvements, and to issue the Bonds to finance the cost thereof, subject to completion of the proceedings required by the Bond Law.

2. Findings. The City Council hereby finds and determines that the estimated costs of the Improvements will require an expenditure by the City greater than the amount allowed for it by the annual tax levy of the City. The principal amount of the Bonds will not exceed the estimated cost of the Improvements.

3. Issuance of the Bonds. This Resolution is adopted, and the Bonds, if approved by two-thirds of all qualified voters voting on the issuance of the Bonds, are to be issued pursuant to the Bond Law.

4. Appointment of Consultants. In connection with the issuance of the Bonds and related election matters, the City Council hereby authorizes and ratifies the appointment of Urban Futures, Inc., as municipal advisor to the City, and Anzel Galvan LLP, as Bond Counsel and Disclosure Counsel to the City. Each of the City Manager and the Director of Finance is hereby authorized and directed to execute, on behalf of the City, a professional services agreement with each such firm, to the extent they deem necessary.
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5. Effective Date. This Resolution shall take effect upon its adoption by two-thirds of all members of the City Council.

PASSED AND ADOPTED this 7th day of July 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
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TAX RATE STATEMENT
An election will be held in the City of East Palo Alto (the “City”) on November 3, 2026, to authorize the sale of up to $125 million in bonds of the City to finance the specific projects listed in the measure. If such bonds are authorized, the City expects to sell the bonds in one or more series. Principal and interest on the bonds will be payable solely from the proceeds of ad valorem tax levies made upon the taxable property in the City.

The following information is provided in compliance with sections 9400-9404 of the California Elections Code. Such information is based upon the best estimates and projections presently available from official sources, upon experience within the City, and other demonstrable factors.

Based upon the foregoing and projections of the City’s assessed valuation:

1. The best estimate of the average annual tax rate that would be required to be levied to fund the bond issue over the entire duration of the bond debt service, based on a projection of assessed valuations available at the time of filing of this statement is $105.26 per $100,000 of assessed valuationof all property to be taxed. The best estimate of the final fiscal year in which the tax is anticipated to be collected is 2057.

2. The best estimate of the highest tax rate that would be required to be levied to fund the bond issue, based on a projection of assessed valuations available at the time of filing this statement is $114.41105.26 per $100,000 of assessed valuation of all property to be taxed. The best estimate of the first fiscal year in which the highest tax rate will apply is 2028.

3. The best estimate of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold is $268,205,658.

Voters should note that such estimated tax rates are specific to the repayment of bonds issued under this authorization and are and will be in addition to tax rates levied in connection with other bond authorizations approved or to be approved by the City or any other overlapping public agency.

Voters should note that estimated tax rate is based on the assessed value of taxable property on San Mateo County’s official tax rolls, not on the property’s market value. Property owners should consult their own property tax bills to determine their property’s assessed value and any applicable tax exemptions.

Attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only, which amounts are not maximum amounts or durations and are not binding upon the City. The actual debt service amounts, tax rates and the years in which they will apply may vary from those presently estimated, due to variations from these estimates in the timing of bond sales, the amount of bonds sold and market interest rates at the time of each sale, and actual assessed valuations over the 241
term of repayment of the bonds. The dates of sale and the amount of bonds sold at any given time will be determined by the City based on need for funds and other factors. The actual interest rates at which the bonds will be sold will depend on the bond market at the time of each sale. Actual future assessed valuation will depend upon the amount and value of taxable property within the City as determined by the San Mateo County assessor in the annual assessment and the equalization process.

Director of Finance
City of East Palo Alto
July __, 2026
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ORDINANCE NO. XX – 2026

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING A BONDED

INDEBTEDNESS TO THE QUALIFIED VOTERS OF THE CITY OF EAST PALO ALTO AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2026, FOR THE PURPOSE

OF FINANCING THE COST OF THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF

CERTAIN MUNICIPAL IMPROVEMENT PROJECTS
WHEREAS, on July 7, 2026, the City Council of the City of East Palo Alto (the “City”) adopted, by a two-thirds vote of all its members, a resolution entitled “Resolution of the City Council of the City of East Palo Alto determining that the public interest and necessity demand the acquisition, construction and improvement of municipal improvement projects, and their financing through the issuance of general obligation bonds,” pursuant to which the City Council has found and determined that the public interest and necessity demand the issuance of general obligation bonds to finance the cost of acquisition, construction and improvement of certain municipal improvements, consisting of a civic center, recreational facilities and park improvements, and water and stormwater system infrastructure projects, as more fully described herein; and
WHEREAS, the City estimates the cost of the Improvements to total $205,000,000, consisting of (i) approximately $20,000,000 for the police department facility, including an emergency operations center, (ii) approximately $120,000,000 for the public library, City Hall, and related civic and communityserving facilities, (iii) approximately $30,000,000 for recreational facilities and park improvements, and (iv) approximately $35,000,000 for water system and stormwater system infrastructure projects; and WHEREAS, existing funds and funding sources are inadequate to finance the Improvements; and
WHEREAS, the City may have the opportunity to leverage private donations and state and federal grants to finance the Improvements; and
WHEREAS, the owner of approximately four (4) acres of real property located on Pulgas Avenue described in clause (a) above has indicated its intent to donate said property to the City if the issuance of the Bonds is approved by two-thirds of all voters voting on the proposition, and the City expects to construct said civic center thereon; and
WHEREAS, the owner of approximately six (6) acres of real property located on Pulgas Avenue described in clause (b) above has indicated its intent to donate said property to the City if the issuance of the Bonds is approved by two-thirds of all voters voting on the proposition, and the City expects to construct and develop said recreational facilities and park improvements thereon; and WHEREAS, the combined estimated value of said approximately ten (10) acres of real property is approximately $29,000,000, leaving $176,000,000 in estimated Improvement costs to be funded with other sources; and
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WHEREAS, the City intends to finance the remaining $176,000,000 in estimated Improvement costs through the issuance of the Bonds ($125,000,000), funds on hand in the City’s General Fund ($20,000,000 expected to be appropriated), private cash donations ($21,000,000 goal), and local, state and federal grants ($10,000,000 goal); and
WHEREAS, the City’s goal is to raise $21,000,000 through private cash donations and $10,000,000 in state and federal grants, and to restrict said donations and grants to financing the civic center; andWHEREAS, the City has not entered into any agreement providing for any of said donations or grants, no assurance can be given that any of said donations or grants will be received by the City, and neither the issuance of the bonds described herein nor the undertaking of the municipal improvements to be financed is contingent upon receipt thereof; and WHEREAS, said donations or grants are expected to be restricted to the purposes hereinbefore described, and the City does not expect to receive them if the proposed measure herein described is not approved by two-thirds of the voters voting on the proposition; and WHEREAS, to the extent said expected donations of real property are not received, the municipal improvements to be financed include the acquisition of real property therefor, as described in the full text of the Measure; and
WHEREAS, to provide for the issuance by the City of general obligation bonds to provide financing for said improvements, it is necessary for the City Council to adopt an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the City at a municipal election; and
WHEREAS, the City Council desires to submit said ballot measure to the qualified voters of the City at the regular election to be held in the City on November 3, 2026, and to consolidate the bond election with other elections held within the City on that date;

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

SECTION 1. FINDINGS
The foregoing recitals are true and correct, and the City Council so finds and determines.

SECTION 2. PURPOSE AND INTENT
Pursuant to the authority provided by the California Government Code and California Elections Code, the City Council proposes to order the submission of a proposition of incurring bond indebtedness to the qualified voters of the City at the general municipal election to be held on November 3, 2026.

SECTION 3. CALL FOR ELECTION
The City Council hereby orders that a proposition of incurring bond indebtedness (hereinafter referred to as the “Measure”) be submitted to the qualified voters of the City in the form, and for the purposes, set forth in the Measure at the regular election to be held on November 3, 2026.

SECTION 4. MEASURE
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The City Council hereby submits the Measure to the qualified voters of the City, at the regular election to be held on November 3, 2026. The statement of the Measure shall be in substantially the form attached hereto as Exhibit A.

SECTION 5. OBJECT AND PURPOSE OF BONDS
The Measure authorizes the issuance of general obligation bonds (the “Bonds”), the object and purpose of which is to finance the cost of the acquisition, construction and improvement of certain property to be used for municipal purposes (the “Improvements”), consisting of the following: (a) acquisition of approximately four (4) acres of real property located on Pulgas Avenue (or any other real property in the City) and the construction of a civic center thereon consisting of (i) an approximately 20,000 square foot police department facility, including an emergency operations center, and (ii) an approximately 100,000 square foot building to house a public library, City Hall, and related civic and communityserving facilities; (b) acquisition of approximately six (6) acres of real property located on Pulgas Avenue (or any other real property in the City) and the construction and development of recreational facilities and park improvements thereon, including, but not limited to, a track and field facility and related park amenities; (c) design, acquisition, construction, reconstruction, replacement, expansion, improvement, and equipping of water system infrastructure projects identified in the City’s capital improvement program, applicable water system master plans and as may otherwise be approved from time to time by the City Council consistent with the purposes described in this clause (c), including, but not limited to, water storage facilities, water mains and distribution pipelines, and related facilities and improvements necessary to improve system reliability, capacity, resiliency, and long-term service delivery; and (d) design, acquisition, construction, reconstruction, replacement, expansion, improvement, and equipping of stormwater system infrastructure projects identified in the City’s capital improvement program and applicable stormwater system master plans and as may otherwise be approved from time to time by the City Council consistent with the purposes described in this clause (d), including, but not limited to, storm drains and related facilities and improvements necessary to improve drainage capacity, flood protection, water quality, and system reliability.

The Improvements described above together constitute, and are intended by the City Council to constitute, a single, unified plan and program of municipal improvements for the City, and the listing of individual projects is intended to describe the components of that unified plan.

The authorized Improvements also include all work, facilities and expenditures necessary and incidental to the projects described above. Examples of such work, facilities, and expenditures include, but are not limited to: costs of design, engineering, architect and other professional services, inspections, site preparation, utilities, landscaping, construction management and other planning and permitting, legal, accounting and similar costs; a customary construction contingency; demolition and disposal of existing structures; rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction; addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes and other applicable law, including the Americans with Disabilities Act; costs of the bond election; bond issuance costs; project administration during the duration of such projects; and financing and interest costs on the Bonds. Proceeds of the Bonds shall be applied only to the acquisition or improvement of real property, including fixtures and other equipment constituting improvements to real property, and to costs necessary or incidental thereto, consistent with Section 1(b)(2) of Article XIIIA of the California Constitution. 245
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The final costs, locations, designs, layouts and other components of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed. The City Council shall determine the priority, order, and timing of the Improvements, the Improvements may be undertaken and completed in any order, and the completion of any individual project is not contingent upon the completion of any other project. The City Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements.

SECTION 6. ESTIMATED COST OF IMPROVEMENTS
The estimated cost of the Improvements is $205,000,000. The estimated cost includes legal or other fees, the costs of printing the Bonds, and other costs and expenses incidental to or connected with the authorization, issuance and sale of the Bonds. To the extent the Improvements financed are revenue-producing public works, the cost of the Improvements may also include bond interest estimated to accrue during the construction period and for a period of not to exceed 12 months after completion of construction.

SECTION 7. PRINCIPAL AMOUNT OF BONDS
The aggregate principal amount of the Bonds to be issued is not to exceed $[125,000,000].

SECTION 8. MAXIMUM INTEREST RATE
The maximum rate of interest to be paid on the Bonds shall be 12% per annum. Said interest shall be payable semiannually, except that interest for the first year after the date of the Bonds may be made payable at the end of said year.

SECTION 9. ISSUANCE AND SALE OF BONDS
The City proposes to issue and sell the Bonds pursuant to Article 1, commencing with Section 43600, of Chapter 4 of Division 4 of Title 4 of the California Government Code, or Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, in one or more series, in the maximum amount and for the objects and purposes set forth above if two-thirds of all qualified voters voting on the proposition set forth above vote in favor thereof. The Bonds will be general obligations of the City payable from and secured by ad valorem taxes levied and collected in the manner prescribed by the laws of the State of California. The revenue generated from the ad valorem tax levied and collected will be used for the payment of debt service on the Bonds. All the Bonds shall be equally and ratably secured, without priority, by the taxing power of the City.

SECTION 10. MANNER OF CONDUCTING ELECTION
The election on the Measure held on November 3, 2026, shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted, and returned, returns canvassed, results declared, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the election with which it is consolidated.

SECTION 11. PROCEDURE FOR VOTING ON PROPOSITION
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Ballots for the election shall be provided in the form and in the number provided by law. Voters shall be provided an opportunity to vote for or against the proposition on the ballot, in accordance with procedures to be adopted by the authorized officers of the County of San Mateo charged with conducting the election.

SECTION 12. ACCOUNTABILITY REQUIREMENTS
In accordance with Sections 53410 and 53411 of the California Government Code, the City Council hereby adopts the following accountability requirements relating to the Bonds:
(a) The specific purpose of the Bonds is to finance the Improvements; and (b) The proceeds from the sale of the Bonds will be used only for the purposes specified in the Measure and not for any other purpose; and
(c) The proceeds of the Bonds will be deposited into a separate account to be created and held by the City; and
(d) The Director of Finance of the City shall file a report with the East Palo Alto City Council at least annually showing the amount of Bond proceeds collected and expended, and the status of the Improvements; and
(e) All expenditures also will be subject to an annual independent financial audit to confirm that Bond expenditures are consistent with the intent of the Measure.

SECTION 13. IDENTIFICATION OF TAX
The tax imposed by the Measure is an ad valorem tax levied upon taxable real property in the City and will be used to pay the principal and interest on the Bonds.

SECTION 14. OFFICIAL ACTIONS
The Mayor, the City Manager, the Assistant City Manager, the Director of Finance, the City Clerk, and any of their designees, are hereby authorized to execute any documents and to perform all acts necessary to place the Measure on the ballot.

SECTION 15. TAX RATE STATEMENT
The City Council hereby finds that the estimates and projections contained in the Measure and in the Tax Rate Statement required by Section 9401 of the California Elections Code presented at this meeting and on file with the City Clerk have been made based on currently available information but depend on a number of variables which are subject to variation. Such estimates and projections have been made in good faith and are not binding or intended to be limitations on the terms of the general obligation bonds proposed to be authorized in the Measure. The City Manager and Director of Finance, each acting alone, are hereby authorized to finalize and execute the Tax Rate Statement, and to file the tax rate statement with the San Mateo County Registrar of Voters.

SECTION 16. INTERPRETATION
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The provisions of this Ordinance, being necessary for the health, welfare, and safety of the City and its residents, is to be liberally interpreted to carry out its purposes. No error, irregularity or informality, and no neglect or omission of any officer, in any proceeding taken related to the submission of the Measure to the qualified voters of the City shall void or invalidate any such proceeding, any Bonds issued by the City or any levy of ad valorem taxes to pay principal of and interest on the Bonds.

SECTION 17. SEVERABILITY
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or applications, and to this end the provisions this Ordinance are declared to be severable.

SECTION 18. PUBLICATION OF ORDINANCE
This Ordinance shall be published once a day for at least seven days in a newspaper published at least six days a week in the City, or once a week for two weeks in a newspaper published less than six days a week in the City. The first of said publications shall, in either event, be within 15 days after the adoption of this Ordinance. If there are no such newspapers, it shall be posted in three public places in the City for two succeeding weeks. No other notice need be given.

SECTION 19. EFFECTIVE DATE
In accordance with Section 36937(a) of the California Government Code, this Ordinance shall become effective immediately, as an ordinance relating to an election, upon its adoption by two-thirds vote of all the members of this City Council.

PASSED AND ADOPTED this 21st day of July 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Webster Lincoln, Mayor
ATTEST: APPROVED AS TO FORM:

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

MEASURE TO BE SUBMITTED TO THE VOTERS AUTHORIZING

THE CITY OF EAST PALO ALTO TO ISSUE GENERAL OBLIGATION BONDS

TO FINANCE MUNICIPAL IMPROVEMENT PROJECTS
SECTION 1. Findings.

WHEREAS, the City intends to issue general obligation bonds to finance the acquisition, construction and improvement of municipal improvement projects, and the City Council has found and determined that the public interest and necessity demand the issuance of general obligation bonds to finance the cost of acquisition, construction and improvement of certain municipal improvements, consisting of a civic center, recreational facilities and park improvements, and water and stormwater system infrastructure projects, as more fully described herein; and WHEREAS, existing funds and funding sources are inadequate to finance the Improvements; and WHEREAS, the City may have the opportunity to leverage private donations and state and federal grants to finance the Improvements; and
WHEREAS, the owner of approximately four (4) acres of real property located on Pulgas Avenue described in clause (a) above has indicated its intent to donate said property to the City if the issuance of the Bonds is approved by two-thirds of all voters voting on the proposition, and the City expects to construct said civic center thereon; and
WHEREAS, the owner of approximately six (6) acres of real property located on Pulgas Avenue described in clause (b) above has indicated its intent to donate said property to the City if the issuance of the Bonds is approved by two-thirds of all voters voting on the proposition, and the City expects to construct and develop said recreational facilities and park improvements thereon; and WHEREAS, the combined estimated value of said approximately ten (10) acres of real property is approximately $29,000,000, leaving $176,000,000 in estimated Improvement costs to be funded with other sources; and
WHEREAS, the City intends to finance the remaining $176,000,000 in estimated Improvement costs through the issuance of the Bonds ($125,000,000), funds on hand in the City’s General Fund ($20,000,000 expected to be appropriated), private cash donations ($21,000,000 goal), and local, state and federal grants ($10,000,000 goal); and
WHEREAS, the City’s goal is to raise $21,000,000 through private cash donations and $10,000,000 in state and federal grants, and to restrict said donations and grants to financing the civic center; and WHEREAS, the City has not entered into any agreement providing for any of said donations or grants, no assurance can be given that any of said donations or grants will be received by the City, and neither the issuance of the Bonds nor the undertaking of the proposed improvements is contingent upon receipt thereof; and
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WHEREAS, said donations and grants are expected to be restricted to the purposes hereinbefore described, and the City does not expect to receive them if the proposed measure herein described is not approved by two-thirds of the voters voting on the proposition; and WHEREAS, to the extent any such expected donations of real property are not received by the City, the proposed improvements include the acquisition of real property therefor with proceeds of the Bonds; and
SECTION 2. Object and Purpose of Bonds.

This Measure authorizes the issuance of general obligation bonds (the “Bonds”), the object and purpose of which is to finance the cost of the acquisition, construction and improvement of certain property to be used for municipal purposes (the “Improvements”), consisting of the following: (a) acquisition of approximately four (4) acres of real property located on Pulgas Avenue (or any other real property in the City) and the construction of a civic center thereon consisting of (i) an approximately 20,000 square foot police department facility, including an emergency operations center, and (ii) an approximately 100,000 square foot building to house a public library, City Hall, and related civic and communityserving facilities; (b) acquisition of approximately six (6) acres of real property located on Pulgas Avenue (or any other real property in the City) and the construction and development of recreational facilities and park improvements thereon, including, but not limited to, a track and field facility and related park amenities; (c) design, acquisition, construction, reconstruction, replacement, expansion, improvement, and equipping of water system infrastructure projects identified in the City’s capital improvement program, applicable water system master plans and as may otherwise be approved from time to time by the City Council consistent with the purposes described in this clause (c), including, but not limited to, water storage facilities, water mains and distribution pipelines, and related facilities and improvements necessary to improve system reliability, capacity, resiliency, and long-term service delivery; and (d) design, acquisition, construction, reconstruction, replacement, expansion, improvement, and equipping of stormwater system infrastructure projects identified in the City’s capital improvement program and applicable stormwater system master plans and as may otherwise be approved from time to time by the City Council consistent with the purposes described in this clause (d), including, but not limited to, storm drains and related facilities and improvements necessary to improve drainage capacity, flood protection, water quality, and system reliability.

The authorized Improvements also include all work, facilities and expenditures necessary and incidental to the projects described above. Examples of such work, facilities, and expenditures include, but are not limited to: costs of design, engineering, architect and other professional services, inspections, site preparation, utilities, landscaping, construction management and other planning and permitting, legal, accounting and similar costs; a customary construction contingency; demolition and disposal of existing structures; rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction; addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes and other applicable law, including the Americans with 250
Disabilities Act; costs of the bond election; bond issuance costs; project administration during the duration of such projects; and financing and interest costs on the Bonds. Proceeds of the Bonds shall be applied only to the acquisition or improvement of real property, including fixtures and other equipment constituting improvements to real property, and to costs necessary or incidental thereto, consistent with Section 1(b)(2) of Article XIIIA of the California Constitution.

The final costs, locations, designs, layouts and other components of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed. The City Council shall determine the priority, order, and timing of the Improvements, the Improvements may be undertaken and completed in any order, and the completion of any individual project is not contingent upon the completion of any other project. The City Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements.

SECTION 3. Estimated Cost of Improvements.

The estimated cost of the Improvements is $205,000,000. The estimated cost includes legal or other fees, the costs of printing the Bonds, and other costs and expenses incidental to or connected with the authorization, issuance and sale of the Bonds. To the extent the Improvements financed are revenue-producing public works, the cost of the Improvements may also include bond interest estimated to accrue during the construction period and for a period of not to exceed 12 months after completion of construction.

SECTION 4. Principal Amount of Bonds.

The aggregate principal amount of the Bonds to be issued is not to exceed $[125,000,000].

SECTION 5. Maximum Interest Rate.

The maximum rate of interest to be paid on the Bonds shall be 12% per annum.

SECTION 6. Accountability Requirements.

The following accountability measures apply to the issuance of the Bonds pursuant to this Measure (a) The specific purpose of the Bonds is to finance the Improvements; and (b) The proceeds from the sale of the Bonds will be used only for the purposes specified in this Measure and not for any other purpose; and
(c) The proceeds of the Bonds will be deposited into a separate account to be created and held by the City; and
(d) The Director of Finance of the City shall file a report with the East Palo Alto City Council at least annually showing the amount of Bond proceeds collected and expended, and the status of the Improvements; and
(e) All expenditures also will be subject to an annual independent financial audit to confirm that Bond expenditures are consistent with the intent of this Measure. 251
PUBLIC HEARING 14.3

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: July 7, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Chris Dacumos, Contract Senior Planner, Elena Lee, Planning Manager, Natasha Raiburn, Interim Community and Economic Development Director, Shiri Klima, Assistant City Manager
SUBJECT: Woodland Park 1 – Amendment to Development Agreement Terms (Continued) Recommendation
Staff recommends the City Council take the following actions:

1. Waive first reading and introduce an Ordinance:
a. Approving the First Amendment to the Development Agreement between the City of East Palo Alto and Woodland Park Property Owner A, LLC for the Woodland Park Euclid Improvements Project, amending provisions related to (a) the timing of Impact Fee payments, (b) Off-Site Affordable Housing Units, (c) water infrastructure, (d) storm drainage improvements, (e) impact fee credits, and (f) assignment rights;
b. Authorize the City Manager to execute the First Amendment to the Development Agreement in a form approved by the City Attorney; and
c. Find that the adoption of the Ordinance is consistent with the previously adopted Environmental Impact Report (EIR) and that none of the conditions set forth in California Environmental Quality Act (CEQA) Guidelines Section 15162 and 15164 that would require a subsequent or supplemental EIR or Addendum to the EIR are present; and

2. Direct the City Clerk to record the First Amendment to the Development Agreement in the Official Records of San Mateo County in accordance with Government Code Section 65868.5.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
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PUBLIC HEARING 14.3
• Priority: Comprehensive Housing
• Priority: Public Infrastructure and Utilities
Executive Summary
The Woodland Park Euclid Improvements Project is the largest housing development currently in the City's development pipeline and one of the most consequential housing projects in East Palo Alto's recent history. The project will restore 160 rent-stabilized units that were previously demolished, create approximately 390 net-new housing units, advance the City's Regional Housing Needs Allocation obligations, and generate substantial long-term community and fiscal benefits.

On June 16, 2026, the City Council considered a proposed First Amendment to the Development Agreement (DA) for the project but did not reach majority agreement. The Council's primary concerns centered on proposed modifications to the project's off-site affordable housing obligations. Specifically, the Council expressed conceptual support for a partnership with the Ravenswood City School District (RCSD) to develop affordable housing but sought additional information regarding the public benefit associated with that alternative.

Councilmembers also expressed opposition to rehabilitation of existing units and deed restricting them to be affordable for at least fifty-five years being an alternative option.

Following the June 16 meeting, and upon direction from the Council, staff continued negotiations with the Applicant. The Applicant subsequently informed the City that it no longer considers the property transfer and in-lieu fee alternative financially viable. As a result, the Applicant now proposes that the RCSD partnership become the sole alternative compliance option for satisfying its off-site affordable housing obligation (Attachment 4).

Under the proposed RCSD partnership, the Applicant would contribute up to $12 million toward development of an approximately 430-unit affordable housing project proposed by the Ravenswood City School District. In exchange, 78 affordable units within that development would be credited toward the Applicant's inclusionary housing obligation.

Staff believes that, if the RCSD project is ultimately constructed at the proposed scale and affordability levels, the City's primary policy objective should be maximizing the production of affordable housing units rather than maximizing the Applicant's financial contribution.

Accordingly, staff recommends increasing the Applicant's maximum contribution from $12 million to $14 million to provide additional financing flexibility and improve the likelihood that the RCSD affordable housing project can be successfully constructed.

Staff recommends approval because the proposed amendment represents the City's best opportunity to simultaneously restore 160 rent-stabilized units, facilitate construction of approximately 390 net-new housing units, and support development of a substantially larger affordable housing project than originally contemplated under the Development Agreement.

Background
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PUBLIC HEARING 14.3
Sand Hill Property Company, operating through Woodland Park Property Owner A, LLC (successor in interest to Woodland Park Property Owner, LLC) and referred to in this report as the Applicant, is the developer of the Woodland Park Euclid Improvements Project, located at 2001 Manhattan Avenue.

On November 15, 2022, the City Council adopted Ordinance No. 08-2022 approving the Development Agreement (DA) for the project following extensive public review conducted over five City Council meetings. The approvals included certification of the Environmental Impact Report (EIR), adoption of General Plan and zoning amendments establishing a Neighborhood Center Overlay, approval of project entitlements, adoption of a relocation plan for existing tenants, and approval of the Development Agreement.

The Applicant originally proposed demolishing 161 existing residential units and constructing 605 new residential units across three buildings, resulting in a net increase of 444 units. The project also included neighborhood-serving retail space, community space, publicly accessible open space, substantial infrastructure improvements, and replacement of 160 rent-stabilized units with a right for former residents to return.

In 2024, the City Council approved a project amendment reducing the total number of residential units from 605 to 550 and reducing the project from three buildings to two eightstory residential buildings. The amendment resulted in approximately 390 net-new housing units while preserving the project's community benefits and Development Agreement obligations. In 2025, the City Council approved a second project amendment authorizing minor design modifications, including construction of a below-grade parking garage and related site improvements.

Since approval of the original Development Agreement, rising construction costs, increased interest rates, and changing capital markets have significantly altered the economics of multifamily housing development throughout California. According to the Applicant, these market conditions have prevented the project from securing financing and advancing to construction under the existing terms of the Development Agreement.

To ensure viability such that this project moves forward, the City Manager and Assistant City Manager engaged in negotiations with the Applicant regarding potential amendments to the Development Agreement. Those discussions resulted in a proposed First Amendment that preserves the project's approved land uses, density, and community benefits while providing targeted flexibility regarding impact fee timing, affordable housing implementation, water infrastructure, storm drainage improvements, impact fee credits, and assignment rights.

The City Council considered the proposed First Amendment on June 16, 2026, but did not reach majority agreement. Full details of the agreement are included in the June 16th City Council Agenda Report, Public Hearing Item 14.3. Councilmembers expressed opposition to rehabilitation of existing units and deed restricting them to be affordable for at least fifty-five years (Option B). The Council also directed staff to continue discussions with the Applicant regarding the off-site affordable housing provisions (Option A) and return with revised recommendations. This report presents the results of those discussions. 254
PUBLIC HEARING 14.3
Analysis
Continued Negotiation Outcomes
Following the June 16, 2026, City Council meeting, City staff met with the Applicant to further explore modifications to the proposed off-site affordable housing alternatives. During those discussions, the Applicant stated that it no longer considered the property transfer and in-lieu fee payment to the City alternative (Option C) financially viable.

The Applicant explained that it previously agreed to include Option C only as a contingency option and that, based on current financing assumptions, it believes the costs associated with that option may exceed the project's financial feasibility constraints. The Applicant further stated that it cannot provide a financial contribution under the Ravenswood City School District partnership option that is equivalent to the estimated value of Option C.

As a result, the Applicant has proposed that the Ravenswood City School District partnership (Option A) becomes the sole alternative compliance mechanism available under the amended Development Agreement. The Applicant's correspondence explaining this position is included as Attachment 4.

Ravenswood City School District Partnership (Option A)
Option A remains a favorable alternative to the off-site affordable housing requirement contained in the existing Development Agreement.

The existing Development Agreement requires the Applicant, through a partnership with an affordable housing developer, to construct off-site affordable housing units equal to twenty percent of the project's net-new units. To satisfy this obligation, the Applicant and Eden Housing submitted plans to the City and received preliminary authorization from the City’s Planning Division to proceed with submitting a SB 35 Building Permit application for an affordable housing development at 851 Weeks Street. The development would consist of 78 affordable units, including 46 studio units and 32 one-bedroom units serving households earning between 25 percent and 60 percent of Area Median Income (AMI).

The proposed alternative compliance option would instead allow the Applicant to partner with the Ravenswood City School District to support development of an approximately 430-unit affordable housing project primarily designed for teachers and other school staff. Under this arrangement, 78 affordable units within the larger development would be attributed to the Applicant.

The Applicant's credited units would be subject to the City’s Local Preference Policy and be required to substantially maintain the affordability distribution established in the existing Development Agreement and required generally in the City’s Inclusionary Housing Ordinance of all housing or mixed-use developments: 25 percent of units affordable to households earning 35 percent AMI or below; 50 percent of units affordable to households earning 50 percent AMI or below; and 25 percent of units affordable to households earning 60 percent AMI or below.

The proposed RCSD project is currently envisioned as a 100 percent affordable development 255
PUBLIC HEARING 14.3
serving households earning between approximately 30 percent and 70 percent AMI. Based on current assumptions, the project would provide approximately: 43 units affordable at or below 35 percent AMI; 42 units affordable at or below 50 percent AMI; 258 units affordable at or below 60 percent AMI; and 87 units affordable at or below 70 percent AMI.

The table below shows the proposed unit mix and affordability levels for the 430-unit RCSD project. The unit mix and affordability distribution may evolve as the RCSD project advances through design, financing, and entitlement processes. For illustrative purposes, the table below demonstrates how the Applicant's 78-unit affordable housing obligation could be satisfied within the proposed unit mix and affordability structure of the larger 430-unit RCSD development.

Table 1: Existing Off-Site Affordable Housing Vs. Option A Total Units 35% AMI or Less 50% AMI or Less 60% AMI or Less 70% AMI or Less Existing
DA
Option A
(Applicant)
Existing
DA
Option A
(Applicant)
Existing
DA
Option A
(Applicant)
Existing
DA
Option A
(Applicant)
Existing
DA
Option A
(Applicant)
Studio 46 12 (12) 12 1 (1) 23 1 (1) 11 8 (8) - 2
1 – Bed 32 269 (32) 8 27 (19) 16 27 (27) 8 161 (11) - 54 2 – Bed 1* 125**
(34) - 12 - 11 (11) - 75 - 25
3 – Bed 0 24 - 2 - 3 - 14 - 5
Total 79 430 (78) 20 42 (20) 39 42 (39) 19 258 (19) - 86 *One unit reserved for management. ** Two units are reserved for management.

Although the precise unit mix and affordability levels may evolve as the project advances, the RCSD project would produce substantially more affordable housing units than contemplated by the original Development Agreement while maintaining affordability levels generally consistent with the City's original policy objectives. Unlike the proposed 78-unit affordable housing project at 851 Weeks Street, the RCSD proposal would contribute toward the development of an approximately 430-unit affordable housing community. While only 78 units would be credited toward the Applicant's obligation, the City's participation in this partnership could help facilitate the delivery of substantially more affordable housing units than originally contemplated under the Development Agreement.

The RCSD project would also provide a greater number of family-sized affordable units than contemplated under the existing Development Agreement. Under current assumptions, up to 34 of the Applicant's credited units could be two-bedroom affordable units, replacing many of the studio units proposed under the 851 Weeks Street affordable housing project while maintaining comparable affordability levels.

Recommended Response to the Applicant's Proposal
Facilitating construction of the Woodland Park Euclid Improvements Project remains a critical City objective. Completion of the project would restore 160 rent-stabilized units that have already been demolished, produce approximately 390 net-new housing units, advance the City's RHNA obligations, and generate long-term community and fiscal benefits. 256
PUBLIC HEARING 14.3
At the same time, the City has a substantial interest in ensuring that the Applicant satisfies its off-site affordable housing obligations in a manner that maximizes public benefit.

Historically, the City has prioritized the production of affordable housing units over the collection of affordable housing fees. Consistent with this policy approach, staff believes the City should prioritize the successful construction of affordable housing units within the proposed 430-unit RCSD development, even if doing so requires accepting a lower financial contribution from the Applicant than originally anticipated.

If the RCSD project is ultimately constructed at the proposed scale and affordability levels, the resulting public benefits could exceed those contemplated by the original Development Agreement because the RCSD project would facilitate a significantly larger affordable housing development. Under that scenario, the precise amount of the Applicant's contribution becomes less important than ensuring that the affordable housing development itself is successfully financed and constructed.

However, unlike the proposal considered on June 16th, the Applicant's revised proposal eliminates all alternative compliance mechanisms. Consequently, if the RCSD project does not move forward, the Applicant would be required to comply with the affordable housing requirements in the original Development Agreement or return to the City Council and seek additional amendments to the Development Agreement to satisfy its affordable housing obligations.

To mitigate the risk that insufficient gap financing could prevent the RCSD project from advancing, staff recommends increasing the Applicant's maximum financial contribution from $12 million to $14 million. The Applicant and RCSD have executed a non-binding memorandum of understanding (Attachment 5) contemplating a contribution of up to $12 million; however, significant uncertainty remains regarding the ultimate development costs of a project of this scale.

Providing an additional $2 million contingency would improve the likelihood that the RCSD project can be successfully financed and constructed while preserving the substantial public benefits associated with advancing the Woodland Park Euclid Improvements Project. Staff therefore recommends that the City Council approve the proposed amendment with a revised maximum Applicant contribution of up to $14 million for the Ravenswood City School District affordable housing partnership option.

The Applicant has verbally communicated the potential to increase their contribution to $12.5 million but, as seen in Attachment 4, the Applicant’s official stance is that it can support an affordable housing contribution up to $12 million. This amount represents approximately $11 million less than the estimated value of the land and financial contributions contemplated under the existing Development Agreement.

The applicant has not agreed to provide up to a $14 million contribution. However, staff views the proposed increase to a $14 million maximum contribution not as a certain increase in the Applicant's required obligation, but rather as a contingency mechanism intended to improve the likelihood that the RCSD affordable housing project can be successfully financed and 257
PUBLIC HEARING 14.3
constructed. The Applicant and RCSD believe the project only requires $12 million. If the RCSD project proceeds with a contribution of less than $14 million, the Applicant would only be required to contribute the amount necessary to satisfy its obligation under the amended Development Agreement.

Fiscal Impact
The proposed First Amendment does not create a direct fiscal impact on the General Fund at this time.

The Fiscal Impact Analysis prepared for the original project concluded that the development would generate a positive net fiscal benefit to the City, with estimated annual General Fund revenues exceeding annual General Fund expenditures by approximately $1,109,000. Because the proposed amendments do not modify the project's approved scope, density, or land uses, staff does not expect the amendments to alter that analysis.

Realization of these fiscal benefits depends on the project advancing to construction and occupancy.

The proposed amendment to defer payment of development impact fees from building permit issuance to issuance of the first Certificate of Occupancy will delay the City's receipt of impact fee revenues. The original Development Agreement estimated total local impact fees at approximately $11.6 million. While the amendment will affect the timing of revenues available for capital improvements, it will not reduce the total amount of fees ultimately collected by the City.

As discussed in the Analysis section, the Finance Director and Public Works Director have advised that deferral of impact fee payments is not expected to adversely affect the City's Capital Improvement Program or delay planned infrastructure projects. The Applicant remains separately responsible for constructing required project-related infrastructure improvements, including water system and storm drainage improvements, pursuant to the Development Agreement.

Accordingly, staff believes the proposed amendment appropriately balances short-term revenue timing considerations with the City's broader objectives of advancing housing production, restoring rent-stabilized units, and generating long-term fiscal benefits.

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. Additionally, notice was published in the Daily News newspaper. As a legislative action requiring adoption by ordinance, the proposed First Amendment to the DA is subject to the public hearing requirements of Government Code Sections 65867 and 65090, which require published notice in a newspaper of general circulation at least 10 days before the public hearing. Pursuant to Government Code Section 36933, the adopted ordinance must also be published following adoption. The public notice was published in the Palo Alto Daily Journal on June 5, 2026, more than ten days prior to the June 16 hearing date. At the public hearing on June 16, the Council continued the item to July 7, 2026.

Environmental
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The proposed First Amendment to the DA does not require further environmental review under the California Environmental Quality Act (CEQA). The environmental effects of the Project were fully analyzed in the certified Environmental Impact Report (EIR) (SCH #2020040270). An addendum to the EIR was adopted on July 16, 2024, for a subsequent design review amendment. The proposed changes to the DA relate to financial terms, timing of obligations, and operational flexibility and will not result in any new significant environmental effects or a substantial increase in the severity of previously identified effects.

The City has determined that the proposed revisions do not require a subsequent or supplemental EIR or Negative Declaration under Public Resources Code Section 21166 or CEQA Guidelines Sections 15162 and 15164, as there are no new significant effects, no substantial changes in the project, no substantial changes in circumstances, and no new information of substantial importance that was not known at the time the EIR was certified.

Government Code § 84308
The Levine Act, codified at Government Code Section 84308, requires that Councilmembers disclose, recuse, and cure, where appropriate, any conflicts that arise from receipt of contributions of $250 or more from a “party,” “participant,” or any of their agents where an agenda item involves an “entitlement for use.” The approval of a development agreement amendment constitutes an entitlement for use and triggers Levine Act requirements. Councilmembers who have received qualifying contributions must disclose and may need to recuse themselves from voting on this item.

Applicability of Levine Act: Yes.

Analysis of Levine Act Compliance: The project Applicant is Sand Hill Property Company and is represented by Michael Kramer. Staff is unaware of any contributions from these parties to Councilmembers that would require disclosure or recusal. Councilmembers should independently confirm they have not received contributions of $250 or more from any party, participant, or their agents.

Parties: Sand Hill Property Company (Applicant); Michael Kramer (Applicant’s representative); Woodland Park Property Owner A, LLC (Developer).

Participant(s): Staff is unaware of any other parties or participants relevant to the City Council’s consideration of this item at this time.

Attachments:

1. Draft Ordinance Approving the First Amendment to the Development Agreement (will be added 7/6/2026)

2. First Amendment of Development Agreement

3. Original Executed Development Agreement

4. Applicant’s Response to June 16

5. RCSD/Sand Hill MOU
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City Clerk’s Office
City of East Palo Alto
2415 University Ave.

East Palo Alto, CA 94303
Exempt from Recording Fee Pursuant to
Government Code Section 27383
Space above this line for recorder’s use

FIRST AMENDMENT OF DEVELOPMENT AGREEMENT
THIS FIRST AMENDMENT OF DEVELOPMENT AGREEMENT (“First Amendment”) is made this ____ day of _______________, 2026, (“Effective Date”) by and between the City of East Palo Alto, a California municipal corporation (the “City”), and Woodland Park Property Owner A, LLC, a Delaware limited liability company (“Developer”), as successor in interest to Woodland Park Property Owner, LLC, a Delaware limited liability company (“Former Developer”).

RECITALS:

A. Developer is the fee owner of that certain real property in the City located at 2021 Euclid Ave., 2025 Euclid Ave., 2031 Euclid Ave., 2041 Euclid Ave. (previously known as 420 E. O'Keefe), 2043 Euclid Ave., 2012 Euclid Ave., 2032 Euclid Ave., 2036 Euclid Ave., 2040 Euclid Ave., 2042 Euclid Ave., 2044 Euclid Ave., 2054 Euclid Ave., 501 O'Connor St., 2001 Manhattan Ave., and 2033 Manhattan Ave., designated as Assessor's Parcel Nos. 063282010, 063282020, 063282030, 063282040, 063282050, 063282060, 06328207, 063282080, 063282090, 063281020, 063281030, 063281040, 063281100, and 063281110, and more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the “Property”).

B. The Former Developer and City are parties to a Development Agreement passed and adopted by the City Council on November 15, 2022, by Ordinance No. 07-2022 and recorded in the Official Records of San Mateo County on June 23, 2023, as Instrument No. 2023- 030130 (the “Original Development Agreement”), which was assigned to and assumed by Developer in that certain Assignment and Assumption of Development Agreement dated as of July 21, 2023, and recorded in the Official Records of San Mateo County July 31, 2023, as Instrument No. 2023-036726 (the “Assignment”).

C. The City’s Regional Housing Needs Allocation for the sixth cycle (“RHNA 6”) is 829 new housing units by 2031. In 2025, the City reported its RHNA 6 progress to the state and at that time had issued building permits for 221 units toward the 829 units required. The City 260
551\95\5023655.3 2
also reported pipeline projects anticipated to proceed during the sixth cycle, including the Project, which comprises the largest share of units within the pipeline estimates.

D. Developer has been working to proceed with the Project in compliance with the Original Development Agreement.

E. When they entered into the Original Development Agreement, the parties intended for Developer’s affordable housing obligations to be met by the Approved Compliance Option, which entailed the construction of Off-Site AH Units on an Off-Site AH Parcel by AH Developer. As of the date of this First Amendment, Developer and AH Developer have completed the entitlement process for the Off-Site AH Units on an Off-Site AH Parcel located at 851 Weeks Street in East Palo Alto and have applied for several rounds of affordable housing funding, but no funding has been awarded. Developer is working to ensure it can meet its affordable housing obligations so that the Project can be constructed. Certain amendments to the Original Development Agreement are necessary to ensure that affordable housing can be created and the Project can proceed.

East Palo Alto City CouncilJuly 7, 2026

East Palo Alto City Council
July 7, 2026