There will be no restocking charge to the Customer for return or exchange of any item purchased under the terms of any award. If the Customer wishes to return items purchased under an awarded contract, the Contractor agrees to exchange, these items for other items, with no additional charge incurred. Items must be returned to Contractor within thirty (30) days from date of delivery. If there is a difference in price in the items exchanged, the Contractor must notify H-GAC and invoice Customer for increase price or provide the Customer with a credit or refund for any decrease in price per Customer’s preference. On items returned, a credit or cash refund will be issued by the Contractor to Customer. This return and exchange option will extend for thirty (30) days following the expiration of the term of the Contract. All items returned by the Customer must be unused and in the same merchantable condition as when received. Items that are special ordered may be returned only upon approval of the Contractor.
ARTICLE 26: MANUALS
Each product delivered under contract to any Customer must be delivered with at least one (1) copy of a safety and operating manual and any other technical or maintenance manual. The cost of the manual(s) must be included in the price for the Product offered.
ARTICLE 27: OUT OF STOCK, PRODUCT RECALLS, AND DISCONTINUED PRODUCTS H-GAC does NOT purchase the products sold pursuant to a Solicitation or Master Agreement. Contractor is responsible for ensuring that notices and mailings, such as Out of Stock or Discontinued Notices, Safety Alerts, Safety Recall Notices, and customer surveys, are sent directly to the Customer with a copy sent to H-GAC.
Customer will have the option of accepting any equivalent product or canceling the item from Customer’s Purchase Order. Contractor is not authorized to make substitutions without prior approval.
ARTICLE 28: WARRANTIES, SALES, AND SERVICE
Warranties must be the manufacturer's standard and inclusive of any other warranty requirements stated in the Master Agreement; any warranties offered by a dealer will be in addition to the manufacturer’s standard warranty and will not be a substitute for such. Pricing for any product must be inclusive of the standard warranty.
Contractor is responsible for the execution and effectiveness of all product warranty requests and any claims, Contractor agrees to respond directly to correct warranty claims and to ensure reconciliation of warranty claims that have been assigned to a third party.
ARTICLE 29: TERMINATION PROCEDURES
The Contractor acknowledges that this Master Agreement may be terminated for Convenience or Default.
H-GAC will not pay for any expenses incurred after the termination date of the contract.
A. Convenience
H-GAC may terminate this Master Agreement at any time, in whole or in part, with or without cause, whenever H-GAC determines that for any reason such termination is in the best interest of H-GAC, by providing written notice by certified mail to the Contractor. Upon receipt of notice of termination, all services hereunder of the Contractor and its employees and subcontractors shall cease to the extent specified in the notice of termination.
The Contractor may cancel or terminate this Master Agreement upon submission of thirty (30) days written notice, presented to H-GAC via certified mail. The Contractor may not give notice of cancellation after it has received notice of default from H-GAC.
B. Default
H-GAC may, by written notice of default to the Contractor, terminate the whole or any part of the Master Agreement, in any one of the following circumstances:
(1) If the Contractor fails to perform the services herein specified within the time specified herein or any extension thereof; or
(2) If the Contractor fails to perform any of the other provisions of this Master Agreement for any reason whatsoever, or so fails to make progress or otherwise violates the Master Agreements that completion of services herein specified within the Master Agreement term is significantly endangered, and in either of these two instances does not cure such failure within a period of ten (10) days (or such longer Docusign Envelope ID: 5007539E-225F-4A46-804C-C7A65CB8B96D 117
period of time as may be authorized by H-GAC in writing) after receiving written notice by certified mail of default from H-GAC.
(3) In the event of such termination, Contractor will notify H-GAC of any outstanding Purchase Orders and H-GAC will consult with the End User and notify the Contractor to what extent the End User wishes the Contractor to complete the Purchase Order. If Contractor is unable to do so, Contractor may be subject to a claim for damages from H-GAC and/or the End User.
ARTICLE 30: SEVERABILITY
H-GAC and Contractor agree that should any provision of this Master Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Master Agreement, which shall continue in full force and effect.
ARTICLE 31: FORCE MAJEURE
To the extent that either party to this Master Agreement shall be wholly or partially prevented from the performance of any obligation or duty placed on such party by reason of or through strikes, stoppage of labor, riot, fire, flood, acts of war, insurrection, accident, order of any court, act of God, or specific cause reasonably beyond the party's control and not attributable to its neglect or nonfeasance, in such event, the time for the performance of such obligation or duty shall be suspended until such disability to perform is removed. Determination of force majeure shall rest solely with H-GAC.
ARTICLE 32: CONFLICT OF INTEREST
No officer, member or employee of the Contractor or Contractors subcontractor, no member of the governing body of the Contractor, and no other public officials of the Contractor who exercise any functions or responsibilities in the review or Contractor approval of this Master Agreement, shall participate in any decision relating to this Master Agreement which affects his or her personal interest, or shall have any personal or pecuniary interest, direct or indirect, in this Master Agreement.
A. Conflict of Interest Questionnaire: Chapter 176 of the Texas Local Government Code requires contractors contracting or seeking to contract with H-GAC to file a conflict-of-interest questionnaire (CIQ) if they have an employment or other business relationship with an H-GAC officer or an officer’s close family member.
The required questionnaire and instructions are located on the H-GAC website or at the Texas Ethics Commission website https://www.ethics.state.tx.us/forms/CIQ.pdf. H-GAC officers include its Board of Directors and Executive Director, who are listed on this website. Respondent must complete and file a CIQ with the Texas Ethics Commission if an employment or business relationship with H-GAC office or an officer’s close family member as defined in the law exists.
B. Certificate of Interested Parties Form – Form 1295: As required by Section 2252.908 of the Texas Government Code. H-GAC will not enter a Contract with Contractor unless (i) the Contractor submits a disclosure of interested parties form to H-GAC at the time the Contractor submits the contract H-GAC, or (ii) the Contractor is exempt from such requirement. The required form and instructions are located at the Texas Ethics Commission website https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm.
Respondents who are awarded a Contract must submit their Form 1295 with the signed Contract to H-GAC.
ARTICLE 33: FEDERAL COMPLIANCE
Contractor agrees to comply with all federal statutes relating to nondiscrimination, labor standards, and environmental compliance. With regards to “Rights to Inventions Made Under a Contract or Master Agreement,” If the Federal award meets the definition of “funding Master Agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding Master Agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Master Agreements,” and any implementing regulations issued by the awarding agency. Contractor agrees to be wholly compliant with the provisions of 2 CFR 200, Appendix II.
Additionally, for work to be performed under the Master Agreement or subcontract thereof, including procurement of materials or leases of equipment, Contractor shall notify each potential subcontractor or supplier of the Docusign Envelope ID: 5007539E-225F-4A46-804C-C7A65CB8B96D 118
Contractor's federal compliance obligations. These may include, but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§ 1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; (c) the Fair Labor Standards Act of 1938 (29 USC 676 et. seq.), (d) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination on the basis of handicaps and the Americans with Disabilities Act of 1990; (e) the Age Discrimination in Employment Act of 1967 (29 USC 621 et. seq.) and the Age Discrimination Act of 1974, as amended (42 U.S.C. §§ 6101-6107), which prohibits discrimination on the basis of age; (f) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92- 255), as amended, relating to nondiscrimination on the basis of drug abuse; (g) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to the nondiscrimination on the basis of alcohol abuse or alcoholism; (h) §§ 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (i) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (j) any other nondiscrimination provisions in any specific statute(s) applicable to any Federal funding for this Master Agreement; (k) the requirements of any other nondiscrimination statute(s) which may apply to this Master Agreement; (l) applicable provisions of the Clean Air Act (42 U.S.C. §7401 et seq.), the Federal Water Pollution Control Act, as amended (33 U.S.C. §1251 et seq.), Section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and the Environmental Protection Agency regulations at 40 CPR Part 15; (m) applicable provisions of the Davis- Bacon Act (40 U.S.C. 276a - 276a7), the Copeland Act (40 U.S.C. 276c), and the Contract Work Hours and Safety Standards Act (40 U.S.C. 327- 332), as set forth in Department of Labor Regulations at 20 CPR 5.5a; (n) the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (P.L. 94-163).
ARTICLE 34: PROHIBITION ON CONTRACTING WITH ENTITIES USING CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE EQUIPMENT (EFFECTIVE AUG. 13, 2020 AND AS AMENDED OCTOBER 26, 2020)
Pursuant to 2 CFR 200.216, Contractor shall not offer equipment, services, or system that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. Covered telecommunications equipment or services means 1) telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities); 2) for the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities); 3) telecommunications or video surveillance services provided by such entities or using such equipment; or 4) telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country. Respondent must comply with requirements for certifications. The provision at 48 C.F.R Section 52.204-26 requires that offerors review SAM prior to completing their required representations. This rule applies to all acquisitions, including acquisitions at or below the simplified acquisition threshold and to acquisitions of commercial items, including commercially available off the-shelf items.
ARTICLE 35: DOMESTIC PREFERENCE
In accordance with 2 CFR 200.322, as appropriate and to the extent consistent with law, when using federal grant award funds H-GAC should, to the greatest extent practicable, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). H-GAC must include this requirement in all subawards including all contracts and purchase orders for work or products under the federal grant award. If Contractor intends to qualify for Purchase Orders using federal grant money, then it shall work with H-GAC to provide all required certifications and other documentation needed to show compliance.
ARTICLE 36: CRIMINAL PROVISIONS AND SANCTIONS
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The Contractor agrees to perform the Master Agreement in conformance with safeguards against fraud and abuse as set forth by the H-GAC, the State of Texas, and the acts and regulations of any related state or federal agency.
The Contractor agrees to promptly notify H-GAC of any actual or suspected fraud, abuse, or other criminal activity through the filing of a written report within twenty-four (24) hours of knowledge thereof. Contractor shall notify H-GAC of any accident or incident requiring medical attention arising from its activities under this Master Agreement within twenty-four (24) hours of such occurrence. Theft or willful damage to property on loan to the Contractor from H-GAC, if any, shall be reported to local law enforcement agencies and H-GAC within two (2) hours of discovery of any such act.
The Contractor further agrees to cooperate fully with H-GAC, local law enforcement agencies, the State of Texas, the Federal Bureau of Investigation, and any other duly authorized investigative unit, in carrying out a full investigation of all such incidents.
The Contractor shall notify H-GAC of the threat of lawsuit or of any actual suit filed against the Contractor pertaining to this Master Agreement or which would adversely affect the Contractor’s ability to perform services under this Master Agreement.
ARTICLE 37: INDEMNIFICATION AND RECOVERY
H-GAC’s liability under this Master Agreement, whether for breach of contract, warranty, negligence, strict liability, in tort or otherwise, is limited to its order processing charge. In no event will H-GAC be liable for any loss of use, loss of time, inconvenience, commercial loss, lost profits, or savings or other incidental, special or consequential damages to the full extent such use may be disclaimed by law. Contractor agrees, to the extent permitted by law, to defend and hold harmless H-GAC, its board members, officers, agents, officials, employees, and indemnities from any and all claims, costs, expenses (including reasonable attorney fees), actions, causes of action, judgements, and liens arising as a result of Contractor’s negligent act or omission under this Master Agreement. Contractor shall notify H-GAC of the threat of lawsuit or of any actual suit filed against Contractor relating to this Master Agreement.
ARTICLE 38: LIMITATION OF CONTRACTOR’S LIABILITY
Except as specified in any separate writing between the Contractor and an END USER, Contractor’s total liability under this Master Agreement, whether for breach of contract, warranty, negligence, strict liability, in tort or otherwise, but excluding its obligation to indemnify H-GAC, is limited to the price of the particular products/services sold hereunder, and Contractor agrees either to refund the purchase price or to repair or replace product(s) that are not as warranted. In no event will Contractor be liable for any loss of use, loss of time, inconvenience, commercial loss, loss of profits or savings or other incidental, special or consequential damages to the full extent such use may be disclaimed by law. Contractor understands and agrees that it shall be liable to repay and shall repay upon demand to END USER any amounts determined by H-GAC, its independent auditors, or any agency of State or Federal government to have been paid in violation of the terms of this Master Agreement.
ARTICLE 39: TITLES NOT RESTRICTIVE
The titles assigned to the various Articles of this Master Agreement are for convenience only. Titles shall not be considered restrictive of the subject matter of any Article, or part of this Master Agreement.
ARTICLE 40: JOINT WORK PRODUCT
This Master Agreement is the joint work product of H-GAC and the Contractor. This Master Agreement has been negotiated by H-GAC and the Contractor and their respective counsel and shall be fairly interpreted in accordance with its terms and, in the event of any ambiguities, no inferences shall be drawn against any party.
ARTICLE 41: PROCUREMENT OF RECOVERED MATERIAL
H-GAC and the Respondent must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include: (1) procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; (2) procuring solid waste management services in a manner that Docusign Envelope ID: 5007539E-225F-4A46-804C-C7A65CB8B96D 120
maximizes energy and resource recovery; and (3) establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. Pursuant to the Federal Rule above, as required by the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6962(c)(3)(A)(i)), Respondent certifies that the percentage of recovered materials content for EPA-designated items to be delivered or used in the performance of the Contract will be at least the amount required by the applicable contract specifications or other contractual requirements.
ARTICLE 42: COPELAND “ANTI-KICKBACK” ACT
Contractor shall comply with 18 U.S.C. § 874, 40 U.S.C. § 3145, and the requirements of 29 C.F.R. pt. 3 as may be applicable, which are incorporated by reference into the contract. The contractor or subcontractor shall insert in any subcontracts the clause above and such other clauses as appropriate agency instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all of these contract clauses. A breach of the contract clauses above may be grounds for termination of the Contract, and for debarment as a contractor and subcontractor as provided in 29 C.F.R. § 5.12.
ARTICLE 43: DISCRIMINATION
Respondent and any potential subcontractors shall comply with all Federal statutes relating to nondiscrimination.
These include, but are not limited to:
a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352), which prohibits discrimination on the basis of race, color, or national origin;
b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex;
c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps;
d) The Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101- 6107), which prohibits discrimination on the basis of age;
e) The Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse;
f) The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism;
g) Sections 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290 dd-3 and 290 ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to nondiscrimination in the sale, rental, or financing of housing; i) Any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and
j) The requirements of any other nondiscrimination statute(s) that may apply to the application.
ARTICLE 44: DRUG FREE WORKPLACE
Contractor must provide a drug-free workplace in accordance with the Drug-Free Workplace Act, as applicable.
For the purposes of this Section, “drug-free” means a worksite at which employees are prohibited from engaging in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance. H-GAC may request a copy of this policy.
ARTICLE 45: APPLICABILITY TO SUBCONTRACTORS
Respondent agrees that all contracts it awards pursuant to the contract awarded as a result of this Master Agreement will be bound by the foregoing terms and conditions.
ARTICLE 46: WARRANTY AND COPYRIGHT
Submissions must include all warranty information, including items covered, items excluded, duration, and renewability. Submissions must include proof of licensing if using third party code for programming.
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ARTICLE 47: DATA HANDLING AND SECURITY
It will always be the responsibility of the selected Contractor to manage data transfer and to secure all data appropriately during the project to prevent unauthorized access to all data, products, and deliverables.
ARTICLE 48: DISPUTES
All disputes concerning questions of fact or of law arising under this Master Agreement, which are not addressed within the Whole Master Agreement as defined pursuant to Article 4 hereof, shall be decided by the Executive Director of H-GAC or his designee, who shall reduce his decision to writing and provide notice thereof to the Contractor. The decision of the Executive Director or his designee shall be final and conclusive unless, within thirty (30) days from the date of receipt of such notice, the Contractor requests a rehearing from the Executive Director of H-GAC. In connection with any rehearing under this Article, the Contractor shall be afforded an opportunity to be heard and offer evidence in support of its position. The decision of the Executive Director after any such rehearing shall be final and conclusive. The Contractor may, if it elects to do so, appeal the final and conclusive decision of the Executive Director to a court of competent jurisdiction. Pending final decision of a dispute hereunder, the Contractor shall proceed diligently with the performance of the Master Agreement and in accordance with H-GAC's final decision.
ARTICLE 49: CHOICE OF LAW: VENUE
This Master Agreement shall be governed by the laws of the State of Texas. Venue and jurisdiction of any suit or cause of action arising under or in connection with the Master Agreement shall lie exclusively in Harris County, Texas. Disputes between END USER and Contractor are to be resolved in accordance with the law and venue rules of the state of purchase. Contractor shall immediately notify H-GAC of such disputes.
ARTICLE 50: ORDER OF PRIORITY
In the case of any conflict between or within this Master Agreement, the following order of priority shall be utilized: 1) General Provisions, 2) Special Provisions, 3) Scope of Work, and 4) Other Attachments.
ARTICLE 51: WHOLE MASTER AGREEMENT
Please note, this is an H-GAC Master Agreement template and is used for all products and services offered in H-GAC Cooperative Purchasing. Any redlines to this Master Agreement may not be reviewed. If this Master Agreement has not been signed by the Contractor within 30 calendar days, this Master Agreement will be automatically voided. The Master General Provisions, Master Special Provisions, and Attachments, as provided herein, constitute the complete Master Agreement between the parties hereto, and supersede any and all oral and written Master Agreements between the parties relating to matters herein. Except as otherwise provided herein, this Master Agreement cannot be modified without written consent of the parties.
ARTICLE 52: UNIVERSAL IDENTIFIER AND SYSTEM FOR AWARD MANAGEMENT (SAM) In accordance with 2 CFR Title 2, Subtitle A, Chapter I, Part 25 as it applies to a Federal awarding agency's grants, cooperative agreements, loans, and other types of Federal financial assistance as defined in 2 CFR 25.406.
Contractor understands and as it relates to 2 CFR 25.205(a), a Federal awarding agency may not make a Federal award or financial modification to an existing Federal award to an applicant or recipient until the entity has complied with the requirements described in 2 CFR 25.200 to provide a valid unique entity identifier and maintain an active SAM registration (www.SAM.gov) with current information (other than any requirement that is not applicable because the entity is exempted under § 25.110). 2 CFR 25.200(b) requires that registration in the SAM prior to submitting an application or plan; and maintain an active SAM registration with current information, including information on a recipient's immediate and highest level owner and subsidiaries, as well as on all predecessors that have been awarded a Federal contract or grant within the last three years, if applicable, at all times during which it has an active Federal award or an application or plan under consideration by a Federal awarding agency; and provide its unique entity identifier in each application or plan it submits to the Federal awarding agency. To remain registered in the SAM database after the initial registration, the applicant is required to review and update its information in the SAM database on an annual basis from the date of initial registration or subsequent updates to ensure it is current, accurate and complete. At the time a Federal awarding agency is ready to make a Federal award, if the intended recipient has not complied with an applicable requirement to provide a unique entity identifier or maintain an active SAM registration with current information, the Federal awarding Docusign Envelope ID: 5007539E-225F-4A46-804C-C7A65CB8B96D 122
agency: (1) May determine that the applicant is not qualified to receive a Federal award; and (2) May use that determination as a basis for making a Federal award to another applicant.
ARTICLE 53: PROCUREMENT OF RECOVERED MATERIALS
In accordance with 2 CFR 200.323, the Houston-Galveston Area Council and the Contractor or Subrecipient must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include: (1) procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; (2) procuring solid waste management services in a manner that maximizes energy and resource recovery; and (3) establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. Pursuant to the Federal Rule above, as required by the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6962(c)(3)(A)(i)), the Contractor or Subrecipient certifies that the percentage of recovered materials content for EPA-designated items to be delivered or used in the performance of the Agreement will be at least the amount required by the applicable contract specifications or other contractual requirements.
SIGNATURES:
H-GAC and the Contractor have read, agreed, and executed the whole Master Agreement as of the date first written above, as accepted by:
22nd Century Technologies, Inc.
Signature $docusign:SignHere::Customer1
Name Ashley Christina De Sa
Title Administrator
Date $docusign:DateSigned::Customer1
H-GAC
Signature $docusign:SignHere::InternalSigner
Name Chuck Wemple
Title Executive Director
Date $docusign:DateSigned::InternalSigner
Docusign Envelope ID: 5007539E-225F-4A46-804C-C7A65CB8B96D 5/14/2025 5/19/2025
123
Supplier Product Description HGACBuy
Discount
22nd Century
Technologies, Inc.
Temporary and
Miscellaneous
Departmental Staff
Augmentation
Staffing Services
22nd Century Technologies, Inc.TS06-25 Response Price List Form 1% Attachment A
22nd Century Technologies, Inc.
Temporary Staffing, Direct-Hire, and Other Employer Services Contract No.: TS06-25
Pricing Effective: June 2025
1 Docusign Envelope ID: 5007539E-225F-4A46-804C-C7A65CB8B96D 124
CONSENT ITEM 3.9
EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 6, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Proclamation for Domestic Violence Awareness Month Recommendation
Present the Proclamation for Domestic Violence Awareness Month Attachments
1. Proclamation
125
PROCLAMATION OF THE CITY OF EAST PALO ALTO DECLARING
OCTOBER 2026 ASDOMESTIC ProclamationVIOLENCE
AWARENESS MONTH
WHEREAS, more than one in three women, one in four men, and one in two transgender individuals experience some form of physical or sexual violence and/or stalking by their intimate partner in their lifetime; and
WHEREAS, CORA provided 18,380 services across its programs, connecting survivors and their families to safety, advocacy, and healing; and
WHEREAS, CORA's safe house and hotel programs provided 5,193 nights of emergency shelter, with 103 adults and children entering shelter during the year; and WHEREAS, CORA provided more than $1.34 million in rental assistance and security deposits for 174 adults and children, helping survivors and their families move toward safe, stable housing; and WHEREAS, CORA served 624 adults and children through its mental health programs, provided 3,043 counseling and therapy sessions, and
WHEREAS, CORA provided legal services to 925 survivors, including assistance with restraining orders and complex family-law matters, represented clients in 181 court hearings, accompanied survivors 117 times to court hearings, mediation, or law-enforcement appointments, and responded to 1,928 requests for legal assistance; and
WHEREAS, CORA educated 6,000 middle and high school students about healthy relationships and reached 3,000 adults through community education presentations, training, and tabling events; and
WHEREAS, the City of East Palo Alto recognizes that an effective response to domestic violence requires a countywide continuum of prevention, crisis intervention, shelter, housing, legal advocacy, and mental health support; and
WHEREAS, intimate partner violence continues to be among the most under-reported crimes and San Mateo County is committed to eliminating all forms of intimate partner abuse.
NOW, THEREFORE, BE IT PROCLAIMED that the City Council, hereby designates the month of October 2026 as Domestic Violence Awareness Month, to raise awareness about and encourage all residents of San Mateo County to do their part to help rid our community of intimate partner violence.
Date: October 6, 2026
126
Webster Lincoln, Mayor
127
CONSENT ITEM 3.10
EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 6, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Marissa Silva, Assistant City Clerk
SUBJECT: City Council Meeting Minutes
Recommendation
Adopt the September 15, 2026 City Council Meeting Minutes.
Attachments
1. September 15, 2026, Regular Meeting Minutes
2. September 15, 2026 Special Meeting Minutes
128
EAST PALO ALTO CITY COUNCIL
REGULAR MEETING MINUTES
Tuesday, September 15, 2026, 6:00 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 Regular Meeting to order at 6:09 PM. City Clerk James Colin confirmed a quorum was present.
Attendee Name Title Status Arrived
Webster Lincoln Mayor Present
Ruben Abrica Vice Mayor Present
Carlos Romero Councilmember Present
Mark Dinan Councilmember Present
Martha Barragan Councilmember Present
2. APPROVAL OF THE AGENDA
Motion: Councilmember Romero moved to request that Item 3.4 be pulled; Councilmember Dinan moved and seconded by Councilmember Romero. Motion carried unanimously (5-0).
3. APPROVAL OF THE CONSENT CALENDAR
Motion: Councilmember Romero moved to request that Item 3.4 be pulled; Councilmember Dinan moved and seconded by Councilmember Romero that the consent calendar be approved, excluding 3.4. Motion carried unanimously (5-0).
3.1 Woodland Avenue Street Improvements (ST-33) Design Contract Award
3.2 Establishment of Limited Parking Zones at Various Locations
3.3 4. Monthly Cash Treasury Report for July 2026
3.4 Annual Internal Control Report
3.5 City Council Meeting Minutes
3.6 Childhood Cancer Awareness Month
Motion: Councilmember Romero moved; Vice Mayor Abrica seconded to approve Item 3.4.
Motion carried unanimously (5-0).
4. CLOSED SESSION
No closed session was held.
5. PUBLIC COMMENT
The following speakers provided public comments: Deborah Lewis-Virges, Gail Dixon, Luis Rosas, Mario, Betsy Yanez, and Ofelia Bello. 129
6. INFORMATIONAL REPORTS
6.1 Minor Home Repair Program Launch
No action was taken; the report was received for information.
7. SPECIAL PRESENTATIONS
7.1 Reimagine Dumbarton Project Update
8. PUBLIC HEARINGS
9. POLICY AND ACTION
9.1 Major Home Repairs Program
Staff received direction from council regarding 4 key policy questions. There were public comments regarding this item from Gail Dixon and Mario.
9.2 PWTC Appointments
Council interviewed Emanuel Jimenez, Betsy Yanez, Juany Jimenez, Rafael Avendano, and Ray Zhu.
Ballot Results – Regular Seat:
The council voted by written ballot for the regular seat. Councilmember Romero, Vice Mayor Abrica, Councilmember Dinan, and Councilmember Barragan voted for Rafael Avendano. Mayor Lincoln voted for Betsy Yanez. Rafael Avendano was appointed to the regular seat on the Public Works and Transportation Commission by a vote of 4-1.
Ballot Results – Alternate Seat (First Round):
The council voted by written ballot for the alternate seat. Vice Mayor Abrica, Councilmember Romero, and Mayor Lincoln voted for Betsy Yanez; Councilmember Dinan and Councilmember Barragan voted for Ray Zhu. Betsy Yanez received 3 votes; Ray Zhu received 2 votes. Following Ms. Yanez's public withdrawal, the council proceeded to a second ballot.
Ballot Results – Alternate Seat (Second Round, following Betsy Gaines' withdrawal):
The council voted again for the alternate seat. Vice Mayor Abrica, Councilmember Dinan, and Councilmember Barragan voted for Ray Zhu; Council Member Romero voted for Emmanuel Jimenez; Mayor Lincoln voted for Juan Jimenez. Ray Zhu was appointed to the alternate seat on the Public Works and Transportation Commission by a vote of 3-1-1.
10. ADJOURN CITY COUNCIL SPECIAL MEETING AND RECONVENE TO THE JOINT
SUCCESSOR AGENCY SPECIAL BOARD MEETING
11. JOINT SUCCESSOR AGENCY BOARD CONSENT CALENDAR
11.1 Approval of San Mateo County Community College District Obligation 130
Motion: Councilmember Romero moved, and Vice Mayor Abrica seconded to approve the Consent Calendar. Motion carried 5-0.
12. ADJOURN JOINT SUCCESSOR AGENCY BOARD MEETING AND RECONVENE
THE EAST PALO ALTO SANITARY DISTRICT MEETING
13. EPASD CONSENT CALENDAR
13.1 Cash Disbursement Report of July 2026
Motion: Mayor Lincoln (Vice President) moved, and Vice Mayor Abrica (President) seconded to approve the Consent Calendar. Motion carried 5-0.
14. EPASD PUBLIC COMMENT
15. ADJOURN THE EAST PALO ALTO SANITARY DISTRICT MEETING AND
RECONVENE THE CITY COUNCIL SPECIAL MEETING
16. COUNCIL REPORTS
Vice Mayor Abrica: Reported on the combined State of the City address with comments from councilmember Romero and Mayor Lincoln.
17. ADJOURNMENT
Mayor Lincoln adjourned the meeting at 9:10 PM
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EAST PALO ALTO CITY COUNCIL
SPECIAL MEETING MINUTES
Tuesday, September 15, 2026, 7:00 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 9:10 PM. City Clerk James Colin confirmed a quorum was present.
Attendee Name Title Status Arrived
Webster Lincoln Mayor Present
Ruben Abrica Vice Mayor Present
Carlos Romero Councilmember Present
Mark Dinan Councilmember Present
Martha Barragan Councilmember Present
2. SPECIAL PRESENTATION
2.1 Presentation for Sister City Relationship with Dazu District, Chongqing, China No action was taken as this was just an informational presentation by Victor Wang.
3. ADJOURNMENT
Mayor Lincoln adjourned the meeting at 9:52 PM
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CONSENT ITEM 3.11
EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 6, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Proclamation for the Day of Remembrance
Recommendation
Present the Proclamation for the Day of Remembrance.
Attachments
1. Proclamation
133
PROCLAMATION OF THE CITY OF EAST PALO ALTO
DESIGNATING OCTOBER 7, 2026 AS DAY OF
REMEMBRANCE
WHEREAS, on October 7, 2023, Hamas and Palestinian Islamic Jihad (PIJ), both designated by the United States as Foreign Terrorist Organizations, carried out a devastating attack in Israel that resulted in the deaths of nearly 1,200 people, including 46 Americans, and the kidnapping of approximately 250 people, including at least 12 Americans, forever changing the lives of victims, survivors, and their families; and
WHEREAS, the October 7 attack was the deadliest attack against Jews since the Holocaust and has had a profound impact on Jewish communities in the United States and around the world, while contributing to heightened concerns about antisemitism and hate; and WHEREAS, remembering the victims of October 7 and honoring the survivors and families whose lives were forever changed provides an opportunity to reflect on the human cost of terrorism, violence, and hatred; and
WHEREAS, the City of East Palo Alto recognizes the importance of standing against antisemitism, hate, and violence in all forms and of promoting a community founded upon respect, understanding, dignity, and the protection of all people; and
WHEREAS, the City of East Palo Alto joins communities across the nation and around the world in remembering those who lost their lives on October 7, 2023, honoring the survivors and families affected by the attack, and recognizing the importance of rejecting antisemitism and hate.
NOW, THEREFORE, BE IT PROCLAIMED, that the City Council of the City of East Palo Alto hereby recognizes October 7, 2026, as a Day of Remembrance in the City of East Palo Alto and encourages residents and community members to remember the victims, honor the survivors and families, and stand together against antisemitism, hate, and violence.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of East Palo Alto to be affixed this 7th day of October, 2026. Remembrance Proclamation Date: October 6, 2026
Webster Lincoln, Mayor
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EPASD BOARD MEETING CONSENT CALENDAR 7.1
EAST PALO ALTO
SANITARY DISTRICT
STAFF REPORT
DATE: October 6, 2026
TO: Honorable Members of the City of East Palo Alto City Council, Governing Board to the East Palo Sanitary District, a Subsidiary of the City of East Palo Alto VIA: Melvin E. Gaines, General Manager
BY: Tomohito Oku, District Treasurer
Jessica Y Caballero, Financial Services Manager
SUBJECT: Cash Disbursement Report for August 2026
Recommendation
Accept the cash disbursement report required pursuant to California Health and Safety Code Section 6794.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority: Governance, Organizational Strength, and Fiscal Sustainability Priority: Public Health, Safety, and Quality of Life
Background
On November 15, 2023, the San Mateo Local Area Formation Commission (“LAFCo”) unanimously approved the City of East Palo Alto’s application requesting that the East Palo Alto Sanitary District (“District” or “EPASD”) be made a subsidiary of the City of East Palo Alto.
On October 1, 2024, the reorganization of the District as a subsidiary of the City of East Palo Alto (City), and the City Council its governing board, became effective. Prior to and since that time, staff has worked diligently toward a peaceful and smooth transition. To that end, one aspect of that transition has required staff to review local rules and regulations of EPASD that may require amendment in light of the reorganization.
California Health and Safety Code (H&S) Section 6794 allows the Board to adopt a procedure 135
EPASD BOARD MEETING CONSENT CALENDAR 7.1
that provides for checks or warrants to pay claims and demands without approval by the Board of Directors before payment if the District Treasurer determines that the demands are payable within the District’s approved budget.
On December 3, 2024, the Board adopted an ordinance amending various provisions of the Sanitary District Code including Section 303 Appointed Positions, which authorizes District Treasurers to perform duties including the deposit and withdrawal of funds of the District, issuance of checks or warrants to pay claims and demands without approval by the Board before payment if the District Treasurer determines that the demands are payable within the District’s approved budget.
Furthermore, H&S Section 6794 requires staff to present cash disbursements to the Board at the next regular Board meeting and seek Board approval if demands exceed the District’s approved budget.
This staff report is provided for informational purposes and details all cash disbursements for the month ending August 2026, as approved by the District Treasurer. As of August 31, 2026, actual expenses remain within the District’s approved budget. Year-to-date expenditures total $0.8 million, compared to the adopted budget of $9.8 million, representing 9% of the budget spent to date.
Analysis
The following cash disbursements have been approved by the District Treasurer pursuant to the District Code Section 303, and are hereby reported to the Board:
EPASD Cash Disbursement Reports
For Period Ending August 31, 2026
Vendor Name Invoice Number Description Check Amount Check Issue Date AppleOne, Inc 01-72558 94 Staffing Services $ 4.00 8/7/2026 AppleOne, Inc 01-72642 11 Staffing Services $ 4.00 8/7/2026 AppleOne, Inc 01-73071 20 Staffing Services $ 416.91 8/7/2026 AppleOne, Inc 01-7332828 Staffing Services $ 1,925.60 8/3/2026 AppleOne, Inc 01-7336679 Staffing Services $ 1,925.60 8/7/2026 AppleOne, Inc 01-7342316 Staffing Services $ 1,913.57 8/7/2026 AppleOne, Inc 01-7348573 Staffing Services $ 1,925.60 8/14/2026 AppleOne, Inc 01-7350470 Staffing Services $ 1,925.60 8/21/2026 CALIF PUBLIC EMPLOYEES' H911 EPASD HEALTH PREMIUM $ 9,634.12 8/31/2026 CITY OF PALO ALTO 7800007745 1st Qtr FY26-27 Primary Sedimentaiton Tank & Electrical Upgrade SR $ 677,640.28 8/14/2026 Degree HVAC, Inc 43897 Quarterly Maintenance $ 250.00 8/14/2026 Islas Maintenance Cleaning, LLC 2983 EPASD Janitorial Services $ 2,050.00 8/7/2026 MacLeod Watts Inc 070726EPASD Actuarial Valuation of Other Post-Employment Benefit Programs as of June 30,2025 $ 7,300.00 8/14/2026 PACIFIC GAS & ELECTRIC 2205881930-5 07/2026 PACIFIC GAS & ELECTRIC EPASD 2205881930-5 FOR 6/13/26-7/14/26 $ 20.21 8/7/2026 SAN MATEO DAILY JOURNAL 17944 Notice of Public Hearing 6/15/2026 $ 1,008.00 8/28/2026 $ 707,943.49
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EPASD BOARD MEETING CONSENT CALENDAR 7.1
Fiscal Impact
There is no budget impact by this action as the year-to-date cash disbursements did not exceed the District’s approved budget.
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The proposed action is not a “project” under California Environmental Quality Act (CEQA) pursuant to CEQA Guideline section 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 involves no entitlement.
Analysis of Levine Act Compliance: Not applicable.
Attachments: None.
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EPASD POLICY AND ACTION ITEM 8.1
EAST PALO ALTO
SANITARY DISTRICT
STAFF REPORT
DATE: October 6, 2026
TO: East Palo Alto Sanitary District Board
VIA: Melvin E. Gaines, General Manager
BY: Matt Vining, Utility Manager
SUBJECT: Palo Alto RWQCP Addendum 2 to the partner agreement with EPASD Recommendation
1. Adopt a resolution approving Addendum 2 to the partner agreement between the Palo Alto Regional Water Quality Control Plant (RWQCP) and EPASD and authorizing Palo Alto to utilize an interim line of credit to finance EPASD’s allocated share of the Addendum 2 project costs, following review and comment on the proposal by the EPASD Advisory Committee.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority: Governance, Organizational Strength, and Fiscal Sustainability Priority: Public Infrastructure and Utilities
Background
The Palo Alto Regional Water Quality Control Plant (RWQCP) is currently implementing over $460 million in capital improvements identified in its 2012 Long Range Facilities Plan (LRFP), including major projects such as the Secondary Treasury Upgrades (WQ-190001), Advanced Water Purification System (WQ-19003), and Headworks Facility Replacement (WQ-16002).
These projects are in various stages of design and construction and are funded through a combination of State Revolving Fund (SRF) loans, grants, and debt financing.
The 2012 Long Range Facilities Plan established a comprehensive pathway for modernizing the 138
EPASD POLICY AND ACTION ITEM 8.1
RWQCP to meet future regulatory requirements, accommodate partner agency flows, and replace aging infrastructure. Many early-phase projects have been completed using SRF loans, which provided favorable interest rates and stable long-term funding.
Several remaining projects, including major process upgrades and facility replacements, do not currently have SRF commitments. In addition, updated cost estimates reflect inflation, increased construction costs, and newly identified facility needs. To ensure continuity of construction and design work, the RWQCP partners authorized a line of credit mechanism through amendments to existing partnership agreements.
The amendments enable the line of credit mechanism, currently anticipated to run approximately five years, though Addendum Two does not itself fix a maximum term and instead authorizes Palo Alto to negotiate repayment terms directly, enabling the facility to proceed with critical interim financing while staff continue working with state agencies to secure SRF or other longterm funding sources.
City of Palo Alto Staff initiated a comprehensive update to the LRFP in 2024. The LRFP Update, currently underway, will reassess and reprioritize capital improvement needs over the next 50 years, incorporating consideration of updated regulatory requirements, emerging contaminants, and the current condition and performance of existing RWQCP infrastructure. The update will refine project scopes and cost estimates for remaining projects from the 2012 LRFP and identify additional capital improvements necessary to maintain reliable and compliant plant operations.
The LRFP Update is expected to significantly increase RWQCP’s overall capital needs, highlighting the importance of flexible financing tools such as the proposed LOC.
On November 4, 2025, the City of Palo Alto Finance Committee received an update of the capital improvement program, LRFP Update, capital and O&M cost allocations, program funding strategies and reserve policy. Staff’s funding strategies include the following sources:
• State Revolving Fund (SRF) loans administered by the State Water Resources Control Board
• U.S. Environmental Protection Agency Water Infrastructure Finance and Innovation Act (WIFIA) loans
• Utility revenue bonds issued through capital markets
• Line of Credit (LOC)
• Capital budget for smaller or shorter-term projects.
Analysis
The purpose of this staff report is to seek the EPASD Board’s approval of Addendum Two to the existing partner agreement, which is required before the City of Palo Alto may utilize the line of credit (LOC) for the authorized RWQCP projects. Palo Alto is seeking similar approval from the governing bodies of the participating RWQCP partner agencies.
The LOC is intended to serve as an interim financing mechanism to provide funding for nearterm capital needs while Palo Alto continues to pursue longer-term financing. The LOC will allow the RWQCP to advance necessary capital projects without delaying design or construction while 139
EPASD POLICY AND ACTION ITEM 8.1
permanent financing is being secured. Project costs financed through the LOC are expected to ultimately be refinanced through a utility revenue bond. A subsequent amendment to the partner agreement is anticipated at some future date to establish the methodology and requirements for each partner’s applicable share of the long-term debt service.
Addendum Two primarily addresses partner agency cost-sharing responsibilities and authorizes Palo Alto to utilize the LOC for planned capital improvements. Amendments with the participating agencies maintain the proportional cost allocation methodology established in the respective partner agreements. The interim financing capacity will be used to:
Complete smaller capital improvement projects currently in construction or ready to bid; Advance the design of larger projects requiring additional time to secure long-term financing; and
Maintain progress on the RWQCP modernization program without delays that could increase future costs or risk regulatory non-compliance.
Addendum Two authorizes up to $31 million in total project costs, consisting of:
$18 million for Headworks Project improvements;
$1 million for Outfall Project improvements;
$12 million for deferred minor capital projects; and
Emergency projects, as needed, within the overall $31 million authorization to maintain continuous, compliant, and safe plant operations.
Approval of Addendum Two by the EPASD Board would authorize Palo Alto to utilize the LOC to finance EPASD’s allocated share of these project costs. During the interim financing period, EPASD will be responsible for its proportionate share of interest costs associated with applicable LOC draws, as further described in the Fiscal Impact section.
Palo Alto staff will return to the Palo Alto City Council and partner agencies, as applicable, at key milestones for budget appropriations, project awards, and approval of future long-term financing instruments.
EPASD Advisory Committee Input
The EPASD Advisory Committee received a presentation and provided feedback on this proposed Addendum at a September 24, 2026 Special Meeting. The EPASD AC passed a unanimous vote to recommend that the EPASD Board accept the terms of Addendum 2 to the RWQCP Partners Agreement, with the comment that the Advisory Committee and Board look further into how EPASD’s allocation and capacity maximum are calculated and determined by the RWQCP and City of Palo Alto Finance Committee.
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EPASD POLICY AND ACTION ITEM 8.1
Fiscal Impact
Addendum Two authorizes up to $31 million in total project costs. Under the Agreement, each partner is responsible for its proportional share of project costs based on the capacity allocation established in Exhibit H. EPASD’s capacity allocation is 7.64%. Accordingly, if the full $31 million authorization is utilized, EPASD’s allocated share of the project costs would be approximately $2.37 million ($31 million × 7.64%).
Palo Alto intends to use the line of credit (LOC) as an interim financing mechanism for the authorized project costs. During the LOC period, EPASD will be responsible for its proportionate share of interest costs incurred on amounts drawn from the LOC for project costs. These LOC interest costs will be included in Palo Alto’s quarterly partner billings. Assuming an interest rate of approximately 4% to 5%, the actual interest cost to EPASD will depend on the amount and timing of LOC draws and the period that each amount remains outstanding.
The project costs financed through the LOC, including the outstanding LOC principal, are expected to be subsequently refinanced through a utility revenue bond. Addendum Two does not establish EPASD’s long-term debt-service payment requirements for that financing. A subsequent addendum will establish the methodology and requirements for EPASD’s payment of its applicable share of the utility revenue bond debt service, including principal and interest.
EPASD currently funds its RWQCP obligations through sewer service charges. The additional capital and financing obligations resulting from Addendum Two will need to be incorporated into EPASD’s long-range financial planning and future sewer rate requirements. Current sewer service charges are not expected to fully absorb these additional costs. The precise rate impact is not yet known and will be evaluated through an upcoming rate study, which will determine the timing and level of future rate adjustments needed to support EPASD’s share of RWQCP costs over the next 5–10 years.
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
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EPASD POLICY AND ACTION ITEM 8.1
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
2. RWQCP Proposed Addendum 2 Draft
3. RWQCP Amended Agreement with EPASD
4. Partner’s Meeting Slides September 2, 2026
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Resolution No. XX-2026 1 of 2
RESOLUTION NO. XX– 2026
A RESOLUTION OF THE BOARD
OF THE EAST PALO ALTO SANITARY DISTRICT
APPROVING ADDENDUM TWO TO THE PARTNER AGREEMENT WITH THE PALO
ALTO REGIONAL WATER QUALITY CONTROL PLANT (RWQCP) AUTHORIZING THE
USE OF AN INTERIM LINE OF CREDIT FOR CAPITAL IMPROVEMENTS WHEREAS, the East Palo Alto Sanitary District (EPASD) is a partner agency utilizing the Palo Alto Regional Water Quality Control Plant (RWQCP) for wastewater treatment services; and WHEREAS, the RWQCP is currently implementing over $460 million in critical capital improvements identified in its Long Range Facilities Plan (LRFP) to modernize infrastructure, replace aging facilities, and ensure regulatory compliance; and WHEREAS, several remaining process upgrades and facility replacements do not currently have State Revolving Fund (SRF) loan commitments, and updated cost estimates reflect increased construction costs and inflation; and
WHEREAS, the RWQCP has proposed "Addendum Two" to the existing partner agreement, which authorizes a Line of Credit (LOC) mechanism, currently anticipated to run approximately five (5) years though Addendum Two does not itself fix a maximum term and instead gives Palo Alto authority to negotiate repayment terms, to serve as an interim financing tool to maintain project momentum while long-term permanent financing is secured; and
WHEREAS, under the established proportional cost allocation methodology (Exhibit H), EPASD’s capacity allocation is 7.64%, making its estimated maximum share of the authorized project costs approximately $2.37 million; and
WHEREAS, EPASD will be responsible for its proportionate share of interim interest costs incurred on amounts drawn from the LOC, which will be billed quarterly and subsequently refinanced through a long-term utility revenue bond under a future separate addendum; and WHEREAS, the EPASD Advisory Committee has reviewed the proposal and provided its comments and recommendations regarding the adoption of Addendum Two; and WHEREAS, this action is a government administrative activity that does not constitute a "Project" under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline section 15378(b)(5).
NOW, THEREFORE, BE IT RESOLVED THAT THE BOARD OF THE EAST PALO ALTO SANITARY DISTRICT HEREBY:
1. Approval of Addendum Two: The Board of Directors hereby approves Addendum Two to the partner agreement with the Palo Alto Regional Water Quality Control Plant (RWQCP). 143
Resolution No. XX-2026 2 of 2
2. Authorization of Interim Financing: The Board authorizes the City of Palo Alto to utilize the Line of Credit (LOC) mechanism to finance EPASD’s allocated 7.64% share of the authorized capital project costs, up to a maximum total project authorization of $31 million.
3. Execution of Documents: The Board authorizes the General Manager, or their designee, to execute Addendum Two and take all necessary administrative actions to implement the terms of the agreement.
4. Financial Integration: Staff is directed to incorporate these additional capital and interim financing obligations into the District’s long-range financial planning and the upcoming sewer rate study.
PASSED AND ADOPTED this 6th Day of October 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ruben Abrica, Board President
ATTEST: APPROVED AS TO FORM:
James Colin, Secretary John D. Lê, District Counsel
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ADDENDUM TWO TO THE SECOND RESTATED AND AMENDED
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE EAST PALO
SANITARY DISTRICT FOR WASTEWATER TREATMENT AND DISTRICT
OUTFALL
This Addendum Two to the Second Restated and Amended Agreement Between the City of Palo Alto and the East Palo Sanitary District for Wastewater Treatment and District Outfall is made and entered into on [DATE], by and among the CITY OF PALO ALTO (“Palo Alto”), a municipal corporation under the laws of the State of California, and the East Palo Alto Sanitary District (“District”), a special district formed under the Sanitary District Act of 1923, individually a “Party” and collectively the “Parties”.
RECITALS
A. On May 17, 2021, the Parties entered into an agreement entitled the Second Restated and Amended Agreement Between the City of Palo Alto and the East Palo Sanitary District for Wastewater Treatment and District Outfall (“Second Restated and Amendment Agreement Agreement” or “Agreement”).
B. That agreement affirmed the Parties’ respective rights and obligations regarding treatment of wastewater conveyed from the District’s sanitary sewer system at the City’s Regional Water Quality Control Plant, payment of treatment costs, ongoing debt service for major capital improvement projects (as that term is defined therein) to the Regional Water Quality Control Plan, the District’s sanitary sewer outfall line, and pretreatment programs.
C. Section 6 of the agreement established the Parties’ approval of funding and cost sharing for various major capital improvement projects identified and described therein.
D. On December 5, 2022, approved Addendum One to the Agreement to provide for the Parties’ respective funding and cost-sharing obligations for the planning and design and construction phases of the Secondary Treatment Upgrades Project.
E. Palo Alto owns and operates the regional sewage treatment plant that is part of a sewerage system owned and operated by Palo Alto. Palo Alto is responsible for making capital additions to the system. Under the Agreement, any major capital additions for the replacement of obsolete or worn-out units require an agreement by the Parties amending the Basic Agreement.
F. The Parties now desire to amend the Agreement to approve the construction of certain capital additions and authorize Palo Alto to pursue and obtain financing to fund the costs of the capital additions described herein.
NOW, THEREFORE, in consideration of the terms, conditions and covenants set forth in this Addendum No. Two, the Second Restated and Amended Agreement Between the City of Palo Alto and the East Palo Sanitary District for Wastewater Treatment and District Outfall (the “Agreement”) is hereby amended, as follows:
AGREEMENT
NOW, THEREFORE, in consideration of the terms, conditions and covenants set forth in this Addendum Three, to the Second Restated and Amendment Agreement is hereby amended, as follows:
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SECTION 1. Section 8, Paragraph (a) is added to read as follows:
“a. DESIGN, CONSTRUCTION, AND IMPLEMENTATION OF THE HEADWORKS
PROJECT, OUTFALL PROJECT, AND MINOR CAPITAL, AND EMERGENCY PROJECTS.
1. Projects covered by this Addendum. Palo Alto and East Palo Alto Sanitary District hereby approve the following projects (the “Projects”):
A. Headworks Project: Design services for the Headworks Facility Replacement Project, including preparation of bid-ready construction documents, coordination and approvals from applicable regulatory and permitting agencies, and engineer's opinions of probable construction cost (OPCC) at major project milestones.
B. Outfall Project: Design services and potential construction for the Parallel Outfall Project and Existing Outfall Rehabilitation Project, including preparation of bid-ready construction documents, coordination and approvals from applicable regulatory and permitting agencies, and engineer's opinions of probably construction cost at major project milestones, and related construction activities.
C. Deferred minor capital projects including, but not limited to:
i. Sludge Thickener Rehabilitation design services and construction services, including preparation of bid-ready construction documents, coordination and approvals from applicable regulatory and permitting agencies, and engineer's opinions of probably construction cost at major project milestones, replacement of the instrumentation and controls, and repair of tank surfaces for the three in-service and for the one out-ofservice sludge thickeners. ii. Ventilation Improvements construction, including improvements to the loadout bay mechanical ventilation equipment at the Sludge Dewatering and Loadout Facility.
iii. Plant Records Modernization Projects, including digitizing and rectifying the Plant’s process and instrumentation diagram drawings, creating a digital interactive operation and maintenance manual, and GIS mapping of plant facilities.
D. Emergency projects: In response to, or to prevent, an infrastructure failure, the use of on-call engineering services, construction, and construction management services contracts required to maintain continuous, compliant, and safe operation of the plant at the discretion of the Plant Manager.
2. Project Costs authorized by this Addendum. The total Project Costs authorized by addendum is $31 million. Each Party shall pay its share of the Project Costs in proportion to the capacity it owns in the Joint System or portion thereof as shown in Exhibit “H” to Second Restated and Amendment Agreement Agreement. As used in this Paragraph, the term “Project Costs” means all costs incurred in connection with the design, bidding, construction, and implementation of the Projects and shall include, but not be limited to:
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engineering and other consultants’ fees and costs; deposits, applicable permit fees; construction costs; all costs to apply for and secure necessary permits from all required regional, state, and federal agencies; plan check and inspection fees; startup, commissioning and initial maintenance; insurance; costs associated with financing costs, including issuance costs and interest; and legal and administrative expenses. The estimated amount of Project Costs for each of the projects is as follows:
A. Headworks Project: $18 million
B. Outfall Project: $1 million
C. Deferred minor capital projects: $12 million
i. Sludge Thickener Rehabilitation: $10 million
ii. Other minor capital projects: $2 million
Emergency Projects are not assigned a separate estimated amount and may be undertaken as needed, with costs included within the total Project Costs authorized amount of $31 million.
3. The Parties further agree that Palo Alto shall have the authority to manage project expenditures within the approved total amount of $31 million, including the authority to authorize individual expenditures consistent within each project’s budget; reappropriate funds among the project budgets; establish and adjust contingency reserves; approve additional expenditures funded from contingency reserves. Palo Alto will provide the Parties with quarterly updates on Project expenditures.
4. Financing and Payment of Project Costs by the Parties. The Parties authorize Palo Alto to obtain and administer a line of credit to fund the costs of the Projects. Palo Alto shall have full authority to negotiate the terms of the line of credit, including interest rate (fixed or variable), draw procedures, repayment terms, collateral requirements, covenants, and fees.
Palo Alto’s payment obligations with respect to the line of credit will be evidenced by one or more notes. The Parties acknowledge that Palo Alto may obtain the line of credit in its own name, and the Parties agree to cooperate with Palo Alto's financing efforts, including by providing financial information and executing supporting resolutions as reasonably requested. Palo Alto shall maintain records of all financing costs attributable to each draw on the Line of Credit.
District will pay its respective shares of any Project Costs within thirty (30) business days of receipt of the quarterly billing statement sent by Palo Alto. Palo Alto shall not send more than once invoice in any thirty day period. If a Party disputes the correctness of an invoice, it shall pay the invoice in full and the dispute shall be resolved after payment in accordance with Paragraph 19 of the Basic Agreement and shall not offset any payment due.
5. Tax Covenants.
A. Definitions. The following definitions relate to the covenants set forth in Section 8(a)(5)(B):
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i. “Bonds” mean obligations the interest on which is intended to be excluded from gross income under the Code, including bonds, notes, leases, credit agreements and other evidences of indebtedness.
ii. "Code" means the Internal Revenue Code of 1986 as it may be amended from time to time, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code.
B. Tax Covenants
i. Private Activity Bond Limitation. The parties will assure that any portion of the Joint System financed by Bonds will not be so used as to cause the Bonds to satisfy the private business tests of section 141(b) of the Code or the private loan financing test of section 141(c) of the Code. ii. Federal Guarantee Prohibition. The parties will not take any action or permit or suffer any action to be taken if the result of such action would be to cause any of the Bonds to be "federally guaranteed" within the meaning of section 149(b) of the Code.
iii. Maintenance of Tax-Exemption. The parties will take all actions necessary to assure the exclusion of interest on the Bonds from gross income under the Code.
iv. Record Retention. The parties will retain their records related to the use of any portion of the Joint System financed by Bonds for least 3 years after the Bonds (including any refunding bonds) mature or are redeemed (whichever is earlier).
v. Certificates. In connection with the issuance of Bonds, the parties will execute documentation requested by Palo Alto's bond counsel as support for its opinion as to the exclusion of interest on the Bonds from gross income under the Code.
SECTION 2. Except as modified herein, the Second Restated and Amended Agreement shall remain unchanged, and is hereby ratified and confirmed. [SIGNATURE PAGE FOLLOWS]
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1 Welcome
Please grab some food and your seats!
We would also like to extend a special welcome to any new attendees 183
2 RWQCP
PARTNERS
SEPTEMBER
MEETING
RWQCP,
ADMIN BUILDING
SEPTEMBER 2, 2026
184
3 RWQCP – RWQCP PARTNERS JUNE MEETING
Objectives
• Communicate
Developments Since June 2026
Meeting
• Prepare the Plant and
the Partners for Future Needs
• Reserve Policy Update
• Provide Transparency on Long
Range Facilities Plan Update
(LRFPU)
Agenda
• Introduction and Schedule
• Reserves Policy Study
• Line of Credit
Break
• 1900 Embarcadero Way
• Long Range Facilities Plan Update
• 10-Year Capital Improvement Projects
• Annual Budget Forecast Preparation
• Capital Program Updates
• Ongoing Project Overview
185
4 UPCOMING SCHEDULE
AUGUST8/7: Climate Action and
Sustainability Committee for
Biosolids Facility Plan Update
8/10: Council Items
Carollo LRFPU Amendment;
LOC Approval
8/12 : August Strategies &
Challenges
8/24: 2470 Lab Pivot Furniture
Contract PA Council Approval
SEPTEMBERToday 9/2: Partners Mtg
9/TBD: Initial Mgmnt Review of
FY28 Operating
Expenses(OPEX) Budget
OCTOBER10/6: Finance Committee for
Reserve Policy Study
10/TBD: Next Strategies &
Challenges Mtg
10/19: Partner amendments
for LOC to Palo Alto Council
10/TBD: Council Mtg for 1900
for Embarcadero Purchase after
purchase negotiated
NOVEMBER11/16: City Council Acceptance
of Biosolids Facility Plan and
Park Dedication Ordinance
11/19: Annual Partners
Forecast Mtg
11/TBD: Headwork Design
Amendment to Council
11/TBD: Outfall Design
Amendment to Council
11/TBD: Construction
Management Amendment for
Gravity Thickener
186
5 Reserve Policy Studies
• Staff Reserve Recommendations
• Status Update
• Review Recommended Reserve Types,
Targets/Calculations, and Ramp-up
• Discussion and Next Steps
187
6 RESERVE POLICY RECOMMENDATIONS SUMMARY
Follow a 5-year ramp up schedule with a fixed rate/percentage increase for all reserve funds.
O&M Reserves:
Operations Outlay: 20% of Annual Operating Costs.
Other Outlay: 100% of Minor CIP Annual Authorization.
Capital Reserves:
10%-20% of Average Annual 5-yr Capital Plan.
Debt Reserves:
Match debt convenance requirements (City charter and covenant; typically one year’s debt payment).
Rate Stabilization Reserves:
Eliminate. Part of existing CPA policy, but RWQCP Partners establish sewer rates within their jurisdictions.
Reserve Implementation
Reserve Types and Targets
188
7 RECOMMENDED FY2033 RESERVE TARGETS
Partner Fixed Share Debt Reserve Capital
Reserve
FY27 Flow &
Load Share Other Outlay Operations Outlay Total Target
Plant Targets* -- $16,868,000 $3,322,000 -- $5,200,000 $9,040,000 $34,430,000 Palo Alto 38.16% $6,266,000 $1,268,000 36.01% $1,873,000 $3,255,000 $12,662,000 Mountain View* 37.89% $6,669,000 $1,259,000 41.50% $2,158,000 $3,752,000 $13,838,000 Los Altos 9.47% $1,555,000 $315,000 7.94% $413,000 $718,000 $3,001,000 Los Altos Hills 1.58% $259,000 $52,000 2.02% $105,000 $183,000 $599,000 Stanford 5.26% $864,000 $175,000 6.75% $351,000 $610,000 $2,000,000 EPASD 7.64% $1,255,000 $254,000 5.78% $301,000 $523,000 $2,333,000 O&M Reserve
*Includes AWPS Debt Reserve Requirement which only MV contributes to 189
8 RECOMMENDED 2029 - 2033 RESERVE BALANCES:
5-YR, EQUAL PERCENTAGE RAMP UP
Partner Rate of
Increase FY 29 FY 30 FY 31 FY 32 FY 33 Total Target
Plant Targets* 73% $3,844,000 $6,650,000 $11,505,000 $19,904,000 $34,434,000 $34,430,000 Palo Alto 73% $1,414,000 $2,446,000 $4,232,000 $7,321,000 $12,665,000 $12,662,000 Mountain View* 73% $1,545,000 $2,673,000 $4,624,000 $8,000,000 $13,840,000 $13,838,000 Los Altos 73% $335,000 $580,000 $1,003,000 $1,735,000 $3,002,000 $3,001,000 Los Altos Hills 73% $67,000 $116,000 $201,000 $348,000 $602,000 $599,000 Stanford 73% $223,000 $386,000 $668,000 $1,156,000 $2,000,000 $2,000,000 EPASD 73% $260,000 $450,000 $779,000 $1,348,000 $2,332,000 $2,333,000 *Includes AWPS Debt Reserve Requirement which only MV contributes to 190
9 RECOMMENDED 2029 – 2033 PARTNER RESERVE CONTRIBUTIONS:
5-YR, EQUAL PERCENTAGE RAMP UP
Partner Rate of
Increase FY 29 FY 30 FY 31 FY 32 FY 33 Total Target
Forecasted Plant
Budget for Ref.* - $48,533,000 $64,081,000 $65,081,000 $66,780,000 $68,495,000 - Plant Targets** 73% $3,844,000 $2,806,000 $4,855,000 $8,399,000 $14,526,000 $34,430,000 Palo Alto 73% $1,414,000 $1,032,000 $1,786,000 $3,089,000 $5,341,000 $12,662,000 Mountain View* 73% $1,545,000 $1,128,000 $1,951,000 $3,376,000 $5,838,000 $13,838,000 Los Altos 73% $335,000 $245,000 $423,000 $732,000 $1,266,000 $3,001,000 Los Altos Hills 73% $67,000 $49,000 $85,000 $147,000 $251,000 $599,000 Stanford 73% $223,000 $163,000 $282,000 $488,000 $844,000 $2,000,000 EPASD 73% $260,000 $190,000 $329,000 $569,000 $985,000 $2,333,000 *Based on March 2026 Update to the FY27 Forecast
**Includes AWPS Debt Reserve Requirement which only MV contributes to 191
10 WHY DO A RESERVES STUDY?
Current Status
• Dated reserve policy that’s not
necessarily relevant to the Plant
• Not necessarily tailored to WWTP
(partners instead of ratepayers)
• Not actively managed/tracked
Future Status
• Long Range Facility Plan-Update will
identify updated/expanded capital
improvement program
• Long-term solution as Line of Credit is
an interim solution
Parallel Efforts
• The City, with BakerTilly, is accessing
its current reserve policies and making
recommended changes.
• Raftelis is reviewing their work, and
aligning RWQCP policies where
appropriate/relevant
192
11 PARTNER BENEFITS OF SUSTAINABLE RESERVES
Reduced volume of staff reports
and partner amendments.
Smoothed-out impacts of market
forces on annual expenses.
Reduced (eliminated) general fund
loans and associated interest.
Strong bank balances helps sustain
credit worthiness for future financing
193
12 RESERVES STUDY SCOPE
Purpose
• Maintain financial stability for Operations and Capital • Fund cash flow and emergencies
Raftelis Scope
• Survey of regional utilities agencies to identify practices on reserve targets
• Assessing targets, funding levels, and debt policy alignment • Schedule
› Preliminary recommendations: Summer 2026
› Implementation: FY2029 with new cost allocation updates Coordination
• Align with BakerTilly recommendations
• Provide Partner updates and respond to feedback
194
13 RESERVE POLICY STUDY - TIMELINE 2025
June: Addressing JISR budget
shortfall, Partners identified
reserves to reduce future volatility
September: Proposed a plan to
assess reserves
October: Contracted with Raftelis to
perform a Reserve Study
November: Surveyed other
wastewater treatment facilities
2026February: Presented initial findings
to S&C
March: Presented initial findings to
Partners; aligned with
management’s responses on Baker
Tilly report
June: Status update to S&C.
Continued alignment with Baker Tilly
Report
September:
Partners Meeting specifically
focused on reserves including
implementation plan and partner
specific amounts
October: Present findings to the
Finance Committee
November: Capture preferred
approach in FY 2028 forecast, with
Year-1 costs starting in FY 2029
2027
-2028Spring/Summer 2027:
- Return to Finance Committee with
final recommendations
- CPA Council approval of RWQCP
reserve policy
- Update Partners Agreements to
incorporate reserve
July 2028: Ramp-up for reserves
begin with FY2029 Q1 billings
195
14 • O&M Reserves:
Operations Outlay: Cover working capital for operations and maintenance expenses + any unexpected increases in operating costs during year Other Outlay: Funds needed for non-debt funded capital expenses, typically need the total capital expenditure for the year upfront (i.e., working capital for Minor CIP) • Capital Reserves: Cover unexpected increases, contingencies, and emergencies
• Debt Reserves: Funds required by debt covenants (also referred to as Notes and Loans Reserves)
• Rate Stabilization Reserves: Cover changes in use patterns and associated rate revenues and unexpected increased costs
WORKING DEFINITIONS OF RESERVE TYPES
196
15 SURVEY: THE PEER GROUP
• San Jose / Santa Clara (Regional Facility): Includes Milpitas, Cupertino SD, Burbank SD, West Valley SD (Campbell, Los Gatos, Monte Sereno, Saratoga) • Silicon Valley Clean Water (JPA): Redwood City, San Carlos, Belmont, Most of Menlo Park (aka West Bay Sanitary District)
• San Mateo / Foster City (Shared Plant): Includes Hillsborough, Crystal Springs CSD, some portions of San Mateo County
• Oro Loma / Castro Valley (Shared Plant)
• South SF / San Bruno (Shared Plant): Includes portions of Daly City and Colma, some additional very small partners
• Sunnyvale (Sole Ownership): Includes parts of Cupertino and San Jose • Hayward (Sole Ownership)
197
16 BACKGROUND: PARTNER BILLING SCHEDULE
FY
Q1 Q2 Q3 Q4
FY
Q1 Q2 Q3 Q4
Mountain View,
Palo Alto,
Los Altos, and
East Palo Alto SD
Los Altos Hills*,
Stanford
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
+ Prior Year
True Up
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
+ Prior Year
True Up
Billed on
Prior Year’s
Actuals
Based on the
Flows and
Loads from
the same
period
Billed on
Prior Year’s
Actuals
Based on the
Flows and
Loads from
the same
period
* By agreement, Los Altos Hills flows are determined by calculation, not by metered measurement like other partners 198
17 BACKGROUND: PARTNER BILLING SCHEDULE
FY
Q1 Q2 Q3 Q4
FY
Q1 Q2 Q3 Q4
Mountain View,
Palo Alto,
Los Altos, and
East Palo Alto SD
Los Altos Hills*,
Stanford
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
+ Prior Year
True Up
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
Billed on
Forecast,
Based on
Prior Year’s
Flows and
Loads
+ Prior Year
True Up
Billed on
Prior Year’s
Actuals
Based on the
Flows and
Loads from
the same
period
Billed on
Prior Year’s
Actuals
Based on the
Flows and
Loads from
the same
period
* By agreement, Los Altos Hills flows are determined by calculation, not by metered measurement like other partners Key Findings:
1. The Fund routinely pays for costs ahead of
billings (i.e., partially bills in arrears)
2. The Fund doesn’t capture any cost increases
over forecast for a couple of months, and
potentially longer
199
18 ANALYSIS: RESERVE ALTERNATIVES EVALUATED
Reserve Types
O&M
Capital
Debt
Rate Stabilization
Ramp-Up
Duration
5-Years
10-Years
15-Years
Ramp-Up
Increase Types
Fixed Amount
Fixed Rate
200
19 ANALYSIS: RESERVE ALTERNATIVES EVALUATED
Reserve Types
O&M
Capital
Debt
Rate Stabilization
Ramp-Up
Duration
5-Years
10-Years
15-Years
Ramp-Up
Increase Types
Fixed Amount
Fixed Rate
15 years was quickly
dropped; timeline clearly
doesn’t meet need and
mitigate risk on a
reasonable timeline
201
20 • O&M Reserves: Mitigate the risk and expense
based on the current billing practices
• Capital Reserves: Need to be able to respond to
unforeseen issues and emergencies
• Debt Reserves: Need to be able to meet loan
commitments
• Rate Stabilization:
– Not applicable; RWQCP doesn’t charge rates
– Could be appropriate when there is a surplus ahead of anticipated increased spending, which isn’t the foreseeable situation
RESERVE TYPES REASONING
Reserve
Types
O&M
Capital
Debt
Rate Stabilization
202
21 O&M Reserves:
Operations Outlay: 20% of Annual Operating Costs ($9.0M by FY33) Other Outlay: 100% of Minor CIP Annual Authorization ($5.2M by FY33) Capital Reserves:
For the ramp, 10% of Average annual 5-yr Capital Plan ($3.3M by FY33) Future policy will determine target between 10% and 20%.
Debt Reserves:
Match debt convenance requirements ($16.9M by FY33, primarily by City charter and covenant; typically one year’s debt payment)
Rate Stabilization Reserves:
Eliminate, RWQCP Partners establish sewer rates within their jurisdictions. ($0M)
RESERVE TYPES CALCULATIONS
Estimated Reserves When Fully Funded based on FY33 = $34.4M* *Based on Current CIP
203
22 RAMP-UP PROJECTIONS, 5- AND 10-YEAR CURVES, PT. 1
0 10
20 30
40 50
60 2028 2030 2032 2034 2036 2038 2040 2042
Millions of Dollars
Fiscal Year
5-Year Fixed Rate 10-Year Fixed Rate Annual Reserve Target Debt Reserve 5-Year Fixed Amount 10-Year Fixed Amount Reserve Target
Based on
Current CIP
Potential Reserve
Target Based on
LRFPU
Potential Reserve
Target Based on
LRFPU – Debt Only
Planning to adopt LRFPU CIP late FY2027 or FY2028
204
23 RAMP-UP PROJECTIONS, 5- AND 10-YEAR CURVES, PT. 2
0 10
20 30
40 50
60 2028 2030 2032 2034 2036 2038 2040 2042
Millions of Dollars
Fiscal Year
Reserve Ramp Curves
Fixed Rate vs Fixed Amount
5-Year Fixed Rate 10-Year Fixed Rate Annual Reserve Target Debt Reserve 5-Year Fixed Amount 10-Year Fixed Amount Reserve Target
Based on
Current CIP
Solid Lines
Represent a
Fixed Rate
Dashed Lines
Represent a
Fixed Amount
Planning to adopt LRFPU CIP late FY2027 or FY2028
205
24 RAMP-UP DURATION AND TYPE OF INCREASES
❑ 5-yr Ramp-up Duration
– Allow Plant to meet it’s estimated Debt Reserve requirements (by FY2034) – Be best positioned to adapt to LRFPU includes an updated 10-year CIP schedule • Debt and Capital reserves targets to increase in the 5- to 10-year timeframe • Reserve target adjustments in outyears can be gradual ❑ Fixed Rate/Percentage Ramp Increase
– Best positions the fund to meet the anticipated increased CIP 206
25 FIXED RATE VS FIXED AMOUNT RAMP UP
0 10
20 30
40 50
60 2028 2030 2032 2034 2036 2038 2040 2042
Millions of Dollars
Fiscal Year
Reserve Ramp Curves
Fixed Rate vs Fixed Amount
5-Year Fixed Rate 10-Year Fixed Rate Annual Reserve Target Debt Reserve 5-Year Fixed Amount 10-Year Fixed Amount Planning to adopt LRFPU CIP late FY2027 or FY2028
207
26 FIXED RATE VS FIXED AMOUNT RAMP UP
0 10
20 30
40 50
60 2028 2030 2032 2034 2036 2038 2040 2042
Millions of Dollars
Fiscal Year
5-Year Fixed Rate 10-Year Fixed Rate Annual Reserve Target Debt Reserve 5-Year Fixed Amount 10-Year Fixed Amount Fixed Rate (Solid Lines)
Best Position the RWQCP
to Adapt to the
Anticipated CIP (LRFPU)
Ramp-up
Increase
Types
Fixed
Amount
Fixed
Rate
Planning to adopt LRFPU CIP late FY2027 or FY2028
208
27 RAMP-UP DURATION
Ramp-Up
Duration
5-Years
10-Years
15-Years
0 10
20 30
40 50
60 2028 2030 2032 2034 2036 2038 2040 2042
Millions of Dollars
Fiscal Year
5-Year Fixed Rate 10-Year Fixed Rate Annual Reserve Target Debt Reserve 5-Year Fixed Amount 10-Year Fixed Amount 10-Yr Duration Ramp-up
Takes Too Long to Build
Minimum Debt Reserves
and Mitigate RWQCP Risk
Planning to adopt LRFPU CIP late FY2027 or FY2028
209
28 STAFF RESERVE RECOMMENDATIONS SUMMARY
Reserve
Types
O&M
Capital
Debt
Rate Stabilization
Ramp-Up
Duration
5-Years
10-Years
15-Years
Increase
Types
Fixed Amount
Fixed Rate
210
29 $6,649,228
$11,503,664
$19,901,688
$34,430,000
$3,844,000
$2,805,228
$4,854,436
$8,398,024
$14,528,312
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
FY 29 FY 30 FY 31 FY 32 FY 33
O&M Balance (47%) Capital Balance (9%) Debt Balance (44%) O&M Contribution (47%) Capital Contribution (9%) Debt Contribution (44%) RAMP UP IMPLEMENTATION, 5-YEAR FIXED RATE - TOTAL
Reserve Types
• O&M: $14.2M
• Capital: $3.3M
• Debt: $16.9M
211
30 $2.67
$4.62
$8.00
$13.84
$1.55
$1.13
$1.95
$3.38
$5.84
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
FY 29 FY 30 FY 31 FY 32 FY 33
Millions of Dollars
O&M Balance (47%) Capital Balance (9%) Debt Balance (44%) O&M Contribution (47%) Capital Contribution (9%) Debt Contribution (44%)
MOUNTAIN VIEW PARTNER SPECIFIC VALUE LINKS
Fixed Share = 37.89%
Includes AWPS Debt Payment
(30-Year Total $13,419,716).
• Additional AWPS
Payment $447,324 each
year from FY30 onward.
212
31 $0.58
$1.00
$1.74
$3.00
$0.34
$0.25
$0.42
$0.73
$1.27
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
FY 29 FY 30 FY 31 FY 32 FY 33
Millions of Dollars
O&M Balance (47%) Capital Balance (9%) Debt Balance (44%) O&M Contribution (47%) Capital Contribution (9%) Debt Contribution (44%)
LOS ALTOS PARTNER SPECIFIC VALUE LINKS
Fixed Share = 9.47%
213
32 LOS ALTOS HILLS PARTNER SPECIFIC VALUE LINKS
$0.12
$0.20
$0.35
$0.60
$0.07
$0.05
$0.09
$0.15
$0.25
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
FY 29 FY 30 FY 31 FY 32 FY 33
Millions of Dollars
O&M Balance (47%) Capital Balance (9%) Debt Balance (44%) O&M Contribution (47%) Capital Contribution (9%) Debt Contribution (44%) Fixed Share = 1.58%
214
33 $0.39
$0.67
$1.16
$2.00
$0.22
$0.16
$0.28
$0.49
$0.84
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
FY 29 FY 30 FY 31 FY 32 FY 33
Millions of Dollars
O&M Balance (47%) Capital Balance (9%) Debt Balance (44%) O&M Contribution (47%) Capital Contribution (9%) Debt Contribution (44%)
STANFORD PARTNER SPECIFIC VALUE LINKS
Fixed Share = 5.26%
215
34 $0.45
$0.78
$1.35
$2.33
$0.26
$0.19
$0.33
$0.57
$0.98
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
FY 29 FY 30 FY 31 FY 32 FY 33
Millions of Dollars
O&M Balance (47%) Capital Balance (9%) Debt Balance (44%) O&M Contribution (47%) Capital Contribution (9%) Debt Contribution (44%)
EAST PALO ALTO PARTNER SPECIFIC VALUE LINKS
Fixed Share = 7.64%
216
35 PALO ALTO PARTNER SPECIFIC VALUE LINKS
Fixed Share = 38.16%
$2.45
$4.23
$7.32
$12.67
$1.41
$1.03
$1.79
$3.09
$5.34
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
FY 29 FY 30 FY 31 FY 32 FY 33
Millions of Dollars
O&M Balance (47%) Capital Balance (9%) Debt Balance (44%) O&M Contribution (47%) Capital Contribution (9%) Debt Contribution (44%) 217
36 NEXT STEPS
• October 6, 2026: Present findings to the Finance Committee • November 2026: Capture preferred approach in FY 2028 forecast, with Year1 costs starting in FY 2029 • Early 2027: Palo Alto City Council approves updated Reserve Policy for Wastewater Treatment Fund
• Spring/Summer 2027: Update Partners Agreements to incorporate reserve • July 2028: Ramp-up for reserves begin with FY2029 Q1 billings 218
37 Line of Credit
219
38 RFP Was Issued
Feb 13
Proposals
Mar 6
Selection
Mar 9-13
Council Action
Preparations
May
LOC Council
Action
August 10
Initial Draw
August
Partner
Agreements
38 LINE OF CREDIT (LOC) - SCHEDULE
Partner amendments needed
Next Steps
• August 10 Palo Alto Council Action
• Internal process controls for LOC usage
• Partner Amendments
– Drafts sent; need to negotiate/address comments
– Mountain View and Los Altos target Sept 22nd
– EPASD target October 6th
– Stanford ?
– Palo Alto council target date October 19th Provide Partners Update (Early September)
LOC “Projects” and Usage
• Headworks Design
• Gravity Thickener
• 1900 Embarcadero Property Acquisition [Palo Alto
only]
• Outfall Project Design
• Ventilation Improvement
• Minor Capital Projects (Other)
• Emergency Draw
220
39 FY2027 – ADDITIONAL CAPITAL (CASH OR LOC) FOR INITIAL
PROJECT (NEEDS PARTNER AGREEMENT)
Existing Capital Debt
Service
Projects Estimated
Cost in million
MV Cash
Contribution Remaining Palo Alto Los Altos EPASD Los Altos Hills Stanford
37.89% 62.11% 38.16% 9.47% 7.64% 1.58% 5.26%
Headworks Design $18,000,000 $6,820,200 $11,179,800 $6,868,800 $1,704,600 $1,375,200 $284,400 $946,800 Outfall Design $1,000,000 $378,900 $621,100 $381,600 $94,700 $76,400 $15,800 $52,600 Gravity Sludge Thickening
Rehabilitation $10,000,000 $3,789,000 $6,211,000 $3,816,000 $947,000 $764,000 $158,000 $526,000 Sludge Dewatering and
Loadout Ventilation
Improvements
$1,000,000 $378,900 $621,100 $381,600 $94,700 $76,400 $15,800 $52,600 Digital O&M Manual, P&IDs
and Plant GIS System $1,000,000 $378,900 $621,100 $381,600 $94,700 $76,400 $15,800 $52,600 Total $31,000,000 $11,745,900 $19,254,100 $11,829,600 $2,935,700 $2,368,400 $489,800 $1,630,600 Notes:
- New Partner Amendments/Agreements needed before LOC can be used. 221
40 TIME CHECK AND BIO BREAK
222
41 1900 Embarcadero Update
223
42 WORKSPACE PLANNING: SPACE FOR STAFF IS HIGHLY CONSTRAINED Byxbee
Park
Airport
Wetlands
224
43 RWQCP Expansion and Enhancements
• Construction & Capital Project Support
– Contractor staging area and overflow
parking
– Construction management offices (replacing
temporary on-site trailers).
– Expansion of RWQCP footprint and removal
of property fence to improve site integration.
• Workforce Safety
– Removes the liability of staff and visitors
visiting RWQP site during construction.
• Operational & Workforce Improvements
– New employee locker rooms and upgraded
facilities
– Relocation of other Public Works ESD staff
to consolidate operations near RWQCP.
– Utilization of All Hands Meeting Space in
1900 Embarcadero Way saves a $6 million
capital improvement project to renovate the
Admin Building.
• Allows for separation of treatment processes usage
in the Admin Building from future workspace usage.
• Community & Public Interface
– Dedicated public-facing space for RWQCP
meetings, tours, and bid walks.
– Space for programming with Palo Alto
Unified School District.
– Community Meeting Room
• Potential Collocation with Other City
Groups
– Utilities, Zero Waste, Airport, CSD Baylands
HOW 1900 EMBARCADERO COULD BE UTILIZED
225
44 1900 EMBARCADERO UPDATE • Costs will continue to be treated as RWQCP operating expenses and fall
within the existing cost allocation
framework—no agreement amendments
needed.
• Funding will come from a combination of
the Palo Alto’s Line of Credit and
Wastewater Treatment fund balance,
later rolled into utility revenue bonds.
• Financial impact to partners projected at
an annual average of $1.76M over 35
years; current leasing cost
(~$0.40M/year) will be eliminated.
226
45 Long Range Facility Plan Update
• Status Update
• 10-Year Capital Improvement Projects
The Long Range Facility Plan
Update (LRFPU) builds on the
previous LRFP (2012) to
anticipate the RWQCP needs
over the next 50 years. The
LRFPU includes:
• Current and projected
treatment requirements,
• Workspace plan,
• Biosolids facility plan
update; and
• Updated CIP program. There will be a separate
meeting for Partners to go
over the LRFPU in detail.
227
46 LRFPU 2026-27 TIMELINE
Develop Capital Improvement
Plan (including Project
Estimates, Sequencing, and
Schedules)
February 2026
Biosolids Facility
Plan Update –
Public Meeting
June 2026
Parks and Recreation
Commission –
Measure E Findings
Spring 2026
Project
Identification
August 7, 2026
Climate Action &
Sustainability Committee
– LRFPU Update
Prepare Draft
Report
Begin Preparation for
Partner Presentation
Materials
Fall 2026
BSFPU and Measure E
Recommendation to Council
2027
Final LRFPU to Council
Public Meetings Plan Development
Carollo Amendment to support add’l
analyses and Partner presentations
228
47 APPROACH FOR IDENTIFYING CIP PROJECTS
Project Drivers
Capacity Condition
Assessment Regulatory Policy City Needs
Next 5
years
Near
Term
Projects
5 – 15
years
MidTerm
Projects
15+
years
Long
Term
Projects
Implementation Timeline
We are looking at the 10-year CIP for forecasting purposes. 229
48 LRFPU: 10-YEAR CIP IDENTIFICATION
Major Capital
•New Effluent Outfall Discharge System
•New Headworks Facility
•New Tertiary Filtration Facility
•Effluent Discharge UV Dinsinfection
Upgrades
Liquids
Treatment
•Gravity Thickener Rehabilitation
•New Thickening Facility
Solids
Management
•Recycled Water Storage & Distribution
Evaluation
•New Recycled Water Disinfection System
Recycled
Water
•Operations Building Rehabilitation
•Plant Water System Improvements
•New GIS System Development
Plantwide
Infrastructure
Project Drivers
Capacity Condition
Assessment Regulatory Policy City Needs
230
49 50-YEAR CIP AT A GLANCE (BY PROGRAM AREA)
Liquids Treatment
FY25
New Headworks
Facility (H-01)
New Tertiary
Filtration Facility
(TT-03)
FY30 FY35 FY40 FY45 FY50 FY75
New Effluent
Outfall Discharge
System (O-01)
Effluent Discharge UV
Disinfection Upgrades
(TT-05)
STU Phase 2 (ST11)
Program Areas
STU Phase 1
Solids Management
Gravity Thickener Rehab
(T-01)
New Thickening Facility (T04)Potential New Mesophilic
Anaerobic Digestion (B-01)
Potential New Thermal
Drying (B-02)
Potential New
Pyrolysis (B-03)
AWPS Phase 1 Recycled Water
AWPS Phase 2
(RW-09)
New RW Disinfection
System (RW-07)
RW Storage & Distribution
Evaluation (RW-04)
Operations Building
Rehab (WP-03) Plantwide Infrastructure
Yard Piping Improvements (YP04)
Plant Water System
Improvements (WS-02) LRFP-U (PP-03)
New GIS System
Development (YP-01)
Climate Adaptation
Potential New Hybrid Horizontal Levee
& Flood Wall (SLR-02)
Asset Level Protection
(SLR-01)
Roadmap shows select milestone projects that shape the long-term CIP.
Icons identify when major facilities and improvements are expected to be. online.
10-Year CIP
231
50 Annual Budget Forecast Preparation
232
51 Task Start End
May Dry Weather Partner Wastewater Sampling Analyses 5/3 7/24 Flowmeter Data Collection and Analysis 7/1 7/20
Minor CIP Prioritization 7/15 9/10
Major CIP Debt Assumptions 8/19 9/17
Flow and Load Share Calculations 7/27 8/21
End of Year Calculations as Part of City's Annual Comprehensive Financial Reporting 8/24 12/1
City Budget Activities 7/1 12/1
Partner’s Meeting Presentation Development 9/21 11/6
Quarter Two True-Up Billing 10/1 11/15
Development of Partner Specific Forecasts based
on FY25 Actuals 10/8 10/29
Annual November Partner's Meeting (Thursday before Thanksgiving) 11/19 11/19 Overall timeline 5/3 12/1
• Reflects change to
dry-season sampling
ANNUAL RWQCP BUDGET FORECAST PREPARATION SCHEDULE
Applies to
Mountain
View, Palo
Alto, Los
Altos, and
East Palo
Alto SD
233
52 FLOW AND LOAD SHARE CALCULATIONS
MV PA LA EPASD SU LAH TOTAL
Previously
Forecasted Flow
and Load
Share Split for FY
26 (Based on FY 24
Actual Flows and
Load Data)
39.31% 36.66% 10.14% 5.56% 6.35% 1.98% 100%
Final Calculated
Flow and Load
Share for FY 26
42.26% 35.36% 8.40% 5.39% 6.41% 1.98% 100%
234
53 SUMMARY OF ANTICIPATED FORECAST/BUDGET ITEMS
FY 26 True-up
(2nd Qrtr Bill)
Summer 2026 Fall 2026 Winter 2026/27 Spring 2027 Summer 2027 FY 28 Forecast and
Partners Mtng**
November 19, 2026
LOC
Implementation/Use
Draft Amendment
Language for:
• Reserve Fund Policy
• Amended
Flow/Load Share
Calculation
• 3-yr rolling
average
• 1/3 flow, 1/3
COD, 1/3
NH3
** 10-year forecast will include anticipated reserve policy, with ramp up funds starting in FY 29 LOC to CPA Council for
approval
Partners review/accept
LOC amendment
language
Provide updated on
status of 1900 Emb.
Sept Partners Mtng
Long Range Facility Plan Update
Communications/Presentations
235
54 Capital Program Updates
• Ongoing Project Overview
236
55 STU PROJECT (BLOWER ROOM BEFORE / AFTER)
237
56 STU PROJECT (NEW RAS PUMP STATION & LC-11)
238
57 STU PROJECT (CURRENT PROGRESS, AERATION BASIN #2)
239
58 12-KV LOOP PHASES 2 THRU 7
• Installation of new electrical
service entrance cabinet from
CPAU (cabinet is elevated to
account for SLR)
• Installation of five (5) new
switchboxes
• All equipment is installed • Coordinating with Operations for 12-KV cable pulls / terminations to
integrate new equipment into the
12-KV Loop
• Scheduled for August / Sept.
240
59 12-KV LOOP PHASES 2 THRU 7
NEW CPAU #2 CABINET & 1 OF 5 NEW
SWITCHBOXES
241
60 12-KV LOOP SUPPORT AGREEMENT (PENDING)
❑ RWQCP electricians not qualified to perform switching or service on 12-KV equipment ❑ Agreement provides for emergency and afterhours response ❑ Equipment Isolation: safety, de-energization, switching operations, troubleshooting ❑ Peer Reviews: analyses, designs, procedures, calculations, and reports RWQCP / CPAU-E working towards agreement for CPAU-E emergency support 242
61 12-KV LOOP & STU PROJECTS SHUTDOWNS IN 2026
❑ 33 Mechanical / process shutdowns (piping tie-ins / equipment integration) ❑ 4 of Electrical shutdowns (3 on STU / 1 on 12-kV Loop) ❑ 1 full RWQCP shutdown (backing up the sewer)
• Shutdowns required for mechanical, process, electrical, and full RWQCP shutdowns to support construction to integrate new equipment, processes into the existing, operating RWQCP • Many times this work must be done at minimal flow to minimize the disruption to the RWQCP to reduce Plant risk and to reduce contractor costs
• Full RWQCP Shutdowns typically begin at midnight to 2 am and can only last until about 8 am before flows increase and contractors need to vacate work areas as the RWQCP is returned to service
243
62 AWPS PROJECT (ODOR CONTROL UNIT)
• Provides odor control for NPP
• Required to replace NPP in-ground
biofilter odor control unit
• Biofilter demolition required to
allow construction of the AWPS
• Commissioned and put into service
in Jan / Feb 2026
244
63 AWPS PROJECT (CURRENT PROGRESS)
• Installation of interconnecting
piping for MF Feed line and RO
Permeate line
• Underground conduits and process
piping being installed under slab
• Electrical ductbanks to encase
conduits are on-going
• Working towards slab pours for the
AWPS main process area and
Permeate Tank in Sept / Oct
245
64 OUTFALL PIPELINE PROJECT NEXT STEPS
• Gain FAA concurrence for pipelines easements appraisals for FMV (annual rental fees) • Draft / approve MOUs between PAO and PWE, RWQCP, and EPA • Amend designer contract for redesign and revised SOW
246
65 PROGRAM SCHEDULE UPDATE
Completed Program Projects >$3M:
✓ Sludge Dewatering and Loadout Facility
✓ Primary Sedimentation Tank Rehabilitation
✓ Joint Intercepting Sewer Rehabilitation
247
66 End of Slides
We appreciate your participation and feedback!
248
POLICY AND ACTION ITEM 12.1
EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 6, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Commission Appointments
Recommendation
Interview applicants for the following open seats on the Rent Stabilization Board (2), and appoint applicants for the seats for the board using the selection process recommended by staff.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 1: Promote Housing, Economic and Workforce Development Priority No. 3: Promote Health & Public Safety
Priority No. 4: Ensure Our Financial and Organizational Health Government Code § 84308
Applicability of Levine Act: No
Analysis of Levine Act Compliance: Not applicable
Background
The City Council of the City of East Palo Alto is seeking candidates to make appointments for the following seats:
249
POLICY AND ACTION ITEM 12.1
Rent Stabilization Board appointments for the following terms:
Regular Seat No. 3: From May 31,2024, through May 31, 2027 Alternate Seat No. 8: From May 31,2025, through May 31, 2028 The application period has been held open from July 8 through September 25, 2026; however, these positions remain open until filled. The City accepted applications electronically via the SurveyMonkey platform and offered to assist anyone who needed help submitting the application.
The City conducted outreach, including in-person efforts and through its social media outlets to ensure a comprehensive approach to the outreach process. Social media outlets included various newsletters disseminated to over 4,000 residents, Facebook ads, and the City website.
Selection Process
In order to ensure an efficient and transparent Brown Act-compliant selection process, the procedure for review is as follows:
1. City Council will review the applications attached to the October 6, 2026, agenda.
2. City Council will be provided a voting form at the beginning of the agenda item from the City Clerk.
3. City Council will conduct interviews.
4. City Council will make its selections by ballot vote.
Attachments
1. Rent Stabilization Board Applications (redacted)
250
Q1
Name
Jose Sanchez
Q2
Home Address
1675 Woodland Ave
Q3
City
East Palo Alto
Q4
E-mail Address
[email protected]
Q5
Phone Number
650-391-5979
Q6
Are you available to attend regular Board meetings
scheduled for the second Wednesday of every month at
7:00 pm?
Yes
#2
CCOOMMPPLLEETTEE
Collector: Web Link 1 (Web Link)
Started: Wednesday, September 02, 2026 7:48:11 PM
Last Modified: Wednesday, September 02, 2026 7:59:22 PM Time Spent: 00:11:11
IP Address: 50.207.0.170
Rent Stabilization Board Application 2026
3 / 10 251
Q7
Why would you like to serve on the Rent Stabilization Board? I would like to support and contribute in any way to a community I was a part in.
Rent Stabilization Board Application 2026
6 / 10 252
Q1
Name
Uhila Makoni
Q2
Home Address
Respondent skipped this question
Q3
City
East Palo Alto
Q4
E-mail Address
[email protected]
Q5
Phone Number
Respondent skipped this question
Q6
Are you available to attend regular Board meetings
scheduled for the second Wednesday of every month at
7:00 pm?
Yes
#4
CCOOMMPPLLEETTEE
Collector: Web Link 1 (Web Link)
Started: Thursday, September 10, 2026 12:19:55 PM
Last Modified: Thursday, September 10, 2026 12:51:10 PM Time Spent: 00:31:15
IP Address: 67.169.48.212
Rent Stabilization Board Application 2026
7 / 10 253
Q7
Why would you like to serve on the Rent Stabilization Board? I have served diligently on PTWC for the past four years and I have gained valuable knowledge on how the city works from the perspective of Public Works. I would like to expand on this from the Rent Stabilization Board perspective. I do believe in affordable housing and protections for our residents. I would like to understand the nuisance of housing dynamics in City of EPA and support its residents.
Rent Stabilization Board Application 2026
8 / 10 254
Q1
Name
Colina Williams
Q2
Home Address
1650 Bay rd
Q3
City
E.Palo Alto
Q4
E-mail Address
[email protected]
Q5
Phone Number
6509219517
Q6
Are you available to attend regular Board meetings
scheduled for the second Wednesday of every month at
7:00 pm?
Yes
#5
CCOOMMPPLLEETTEE
Collector: Web Link 1 (Web Link)
Started: Thursday, September 24, 2026 11:37:23 AM
Last Modified: Thursday, September 24, 2026 11:42:42 AM Time Spent: 00:05:18
IP Address: 172.56.46.230
Rent Stabilization Board Application 2026
9 / 10 255
Q7
Why would you like to serve on the Rent Stabilization Board? I want to serve because safe, stable housing is foundational. And I want to help make decisions that are fair, transparent, and grounded in lived experience, as well as respectful of residents.
Rent Stabilization Board Application 2026
10 / 10 256
Q1
Name
Jose
Q2
Home Address
Sanchez
Q3
City
East Palo Alto
Q4
E-mail Address
[email protected]
Q5
Phone Number
650-391-5979
Q6
Are you available to attend regular Board meetings
scheduled for the second Wednesday of every month at
7:00 pm?
Yes
#1
CCOOMMPPLLEETTEE
Collector: Web Link 1 (Web Link)
Started: Friday, April 17, 2026 9:39:20 PM
Last Modified: Friday, April 17, 2026 9:41:38 PM
Time Spent: 00:02:18
IP Address: 108.147.93.38
Rent Stabilization Board Application 2026
1 / 11 257
Q7
Why would you like to serve on the Rent Stabilization Board? I would like to serve on the Rent Stabilization Board because I believe stable housing is essential to the well-being of families in East Palo Alto. In my work with youth and families, I see how housing instability directly impacts education, health, and overall quality of life.
I am interested in contributing to fair, balanced decisions that reflect the realities of the community. I value the importance of both protecting tenants and recognizing the responsibilities of property owners, and I would approach this role with a commitment to listening, careful review, and thoughtful decision-making.
I am motivated to serve and support a stable and equitable community for all residents.
Rent Stabilization Board Application 2026
2 / 11 258
Q1
Name
Goolrukh A. Vakil
Q2
Home Address
1875 Woodland Avenue
Q3
City
East Palo Alto
Q4
E-mail Address
[email protected]
Q5
Phone Number
Respondent skipped this question
Q6
Are you available to attend regular Board meetings
scheduled for the second Wednesday of every month at
7:00 pm?
Yes
#2
CCOOMMPPLLEETTEE
Collector: Web Link 1 (Web Link)
Started: Saturday, April 18, 2026 12:39:29 PM
Last Modified: Saturday, April 18, 2026 12:45:33 PM
Time Spent: 00:06:03
IP Address: 23.124.107.33
Rent Stabilization Board Application 2026
3 / 11 259
Q7
Why would you like to serve on the Rent Stabilization Board? I would like to continue serving on the Rent Stabilization Board because I believe in service and I care about this city. I feel that because I have served on this board for 20 years, I can contribute to the issues that arise before the board. I am on the Rules and Regulations subcommittee as I have always been; I also teach Law and Ethics in psychology. Often the tenant is considered the underdog and is focused upon, however, I am aware that both sides of a dispute need to be fairly considered. This is also true in the case of ensuring that terms and conditions going forward are fair to both landlord and tenant. I would be honored to continue serving on the Rent Stabilization Board.
Goolrukh A. Vakil
Rent Stabilization Board Application 2026
4 / 11 260
Q1
Name
Stephanie Hinckley
Q2
Home Address
1729 Woodland AVE
Q3
City
East Palo Alto
Q4
E-mail Address
[email protected]
Q5
Phone Number
6507875488
Q6
Are you available to attend regular Board meetings
scheduled for the second Wednesday of every month at
7:00 pm?
Yes
#3
CCOOMMPPLLEETTEE
Collector: Web Link 1 (Web Link)
Started: Sunday, April 19, 2026 10:12:08 PM
Last Modified: Sunday, April 19, 2026 10:15:15 PM
Time Spent: 00:03:07
IP Address: 99.24.48.5
Rent Stabilization Board Application 2026
5 / 11 261
Q7
Why would you like to serve on the Rent Stabilization Board? My passion is to help others. My skills in communication and education make me a great asset to this Rent Stabilization board. I would like to mention that I am fluent in Spanish.
Rent Stabilization Board Application 2026
6 / 11 262
Q1
Name
Nimish Vora
Q2
Home Address
871 Willow Glen Way
Q3
City
Respondent skipped this question
Q4
E-mail Address
[email protected]
Q5
Phone Number
Respondent skipped this question
Q6
Are you available to attend regular Board meetings
scheduled for the second Wednesday of every month at
7:00 pm?
Yes
Q7
Why would you like to serve on the Rent Stabilization Board? I am a landlord (preferably called "homeowner") of a single family house in East Palo Alto. It is important to have a Balanced Board that will maintain interests and stewardship for both Tenants and Landlords. #4
CCOOMMPPLLEETTEE
Collector: Web Link 1 (Web Link)
Started: Friday, May 08, 2026 2:11:02 PM
Last Modified: Friday, May 08, 2026 2:15:51 PM
Time Spent: 00:04:49
IP Address: 76.217.55.105
Rent Stabilization Board Application 2026
7 / 11 263
Q1
Name
Luis Rosas
Q2
Home Address
2310 Glen Way
Q3
City
East Palo Alto
Q4
E-mail Address
[email protected]
Q5
Phone Number
6506691146
Q6
Are you available to attend regular Board meetings
scheduled for the second Wednesday of every month at
7:00 pm?
Yes
#6
CCOOMMPPLLEETTEE
Collector: Web Link 1 (Web Link)
Started: Friday, May 08, 2026 1:27:25 PM
Last Modified: Tuesday, May 12, 2026 11:06:40 AM
Time Spent: Over a day
IP Address: 174.62.81.24
Rent Stabilization Board Application 2026
10 / 11 264
Q7
Why would you like to serve on the Rent Stabilization Board? I would like to serve on the Rent Stabilization board to provide more perspective on the everyday experience of residents that rent in East Palo Alto. I have many friends, family, and neighbors who rent in East Palo Alto. I would like to collaborate with the rent board and help inform the decisions that directly impact my community around me.
Rent Stabilization Board Application 2026
11 / 11 265
STAFF INFORMATIONAL REPORT 13.1
EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 6, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Cartier Pham, Assistant Engineer
Batool Zaro, Senior Engineer
Humza Javed, Public Works Director
SUBJECT: Citywide Lighting Assessment Project Update
Recommendation
Receive an update regarding the Citywide Lighting Assessment Project.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Promote Health & Public Safety
Background
The City of East Palo Alto Citywide Lighting Project, CIP ST-04 is a city council priority project included in the City’s Capital Improvement Plan. The project includes a lighting analysis to improve citywide lighting. At the February 3
rd 2026 city council meeting, city council awarded a
contract to General Lighting Services for the Citywide Lighting Project (project). In addition to a citywide lighting analysis, the project also will provide recommendations to improve lighting to meet current lighting industry standards.
266
STAFF INFORMATIONAL REPORT 13.1
Analysis
General Lighting Services, (GLS) began work on the project in May 2026. The project began with a comprehensive neighborhood by neighborhood evaluation of existing lighting levels, number of streetlights, coverage, infrastructure conditions, and areas where additional or upgraded lighting may be beneficial. The project is 90% complete.
Following completion of the assessment and recommendations, the City will coordinate with GLS on the preparation of plans, specifications, cost estimates, and construction bid documents. Staff will also be working closely with PG&E for electrical upgrades to PG&E owned light poles as well as other underground utility companies in order to implement the project.
Separately, the Community Services Division is proceeding with park priority projects which include lighting improvements at Bell Street Park, Jack Farrell Park, and Martin Luther King Junior Park. The improvements at Martin Luther King Junior Park include high mast “stadium lighting” improvements which are funded separately through City Council appropriation and pending acceptance of Stanford Recreation Mitigation Fund. Both projects are slated to begin in December 2027.
Next Steps:
Citywide Lighting Assessment (Phase I) Study Completion - December 2026 Finalize the citywide lighting construction schedule/ program (Phase II) - February 2027 Bid/award - May 2027
Fiscal Impact
No fiscal impact.
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Environmental review of the project will be performed as part of this contract during the design phase.
267
STAFF INFORMATIONAL REPORT 13.1
Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement.
Analysis of Levine Act Compliance: Not applicable.
268
STAFF INFORMATIONAL REPORTS 13.2
EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 6, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Don C, Jeppson, Chief Building Official
Elena Lee, Community and Economic Development Director
SUBJECT: Code Enforcement Update
Recommendation
Receive an informational report from staff concerning Code Enforcement.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority: Public Health, Safety, and Quality of Life
Background
On March 16, 2021, staff presented a report and overview of code enforcement activities, policy, and practices. The City Council unanimously agreed to continue the practice of a tiered system to prioritize complaints based on severity, and decided to not allow anonymous submittal of Priority Two (Medium) and Priority Three (Low) Tier complaints.
On April 20, 2021, the City Council adopted Resolution 57-2021 updating the priorities for code enforcement implementation including a revised "Priorities for Code Enforcement.” The April 2021 staff report is attached for reference.
On January 21, 2025, staff presented a report and overview of code enforcement activities. City Council voted for staff to study options on Tier Three priorities. On April 15, 2025, the City Council reviewed the potential strategies for the City to better address Tier Three Code violations and provide direction on the Council’s preferred strategy or alternatives. In the Fiscal Year 2025- 2026 Budget, the City Council appropriated a one-time $150,000 to Code Enforcement above its prior appropriations to specifically address Priority Three Code violations. 269
STAFF INFORMATIONAL REPORTS 13.2
The purpose of this informational report is to provide an update to the City Council on the Code Enforcement program, including accomplishments, challenges, and possible solutions.
Analysis
The City of East Palo Alto responds to a mix of complaints submitted by residents and generated by limited proactive code enforcement action. In all cases, the staff seeks primarily to achieve voluntary compliance to resolve violations, but can escalate as appropriate with additional notices, citations, and fines. Code Enforcement cases often involve illegal/unpermitted construction, debris/storage accumulation, garbage, unpaved parking, nuisances, and other types of violations of the Municipal Code, including street food vending. The chart below shows the major categories of Code Enforcement cases:
As shown in the chart above, in the 18 months before January 2025, Code Enforcement opened 308 cases and closed more than 240 cases. In the 18 months since January 2025, Code Enforcement opened 808 cases and closed more than 600 cases. This is nearly 263% increase in open cases and 294% increase in closed cases with a closed rate remaining nearly the same at 74%. The breakdown of how long it took to close cases is in the following chart:
270
STAFF INFORMATIONAL REPORTS 13.2
As shown in the chart above, 10 to 16% of the cases are closed within 30 days and 33 to 43% of the cases are closed within 90 days. Code Enforcement is on track to exceed six hundred cases this calendar year with a similar close rate. Staff heard the Council’s clear direction to address more Code Enforcement around the community, and Council’s budgetary addition has been spent toward this goal.
Code Enforcement Priorities
Code enforcement complaints are prioritized as set by Resolution Numbers 57-2021 and 4610 (from 2015), both of which are attached to this report. The priorities are summarized below.
1. Priority One (High): Imminent/Immediate threat to health, safety, or environmental resources. Priority One violations are those actions which require immediate attention to address a significant threat or threats to public health and safety or to environmental resources. Examples of such violations include but not limited to:
Housing conditions where faulty structural, electrical systems, gas fuel systems, and/or lack of sanitary facilities and other violations of the California Health and Safety Code and/or Title 8 of the East Palo Alto Municipal Code, or violations of conditions of approval, such as noise or traffic mitigations, specifically designed to protect the public exist and pose an immediate threat to public health, welfare or safety.
Significant environmental issues including, but not limited to, dumping of hazardous materials, alteration of Baylands and/or San Francisquito Creek, removal of significant vegetation, and grading in environmentally sensitive areas.
Response Time: Staff will respond within 1 business day after a complaint is received.
2. Priority Two (Medium): Potential threat to health, safety, or environmental resources.
Unlike Priority One violations, Priority Two violations are those actions that have the potential to cause damage to public health and safety or to the environment:
271
STAFF INFORMATIONAL REPORTS 13.2
Violations in this category are essentially the same as Priority One, except that the potential for damage does not pose an immediate threat to public health, welfare or safety.
Generally, this means that property owners may implement immediate repairs and/or mitigation measures that reduce the immediate threat. Failure to fully address the potential threats will often result in the enforcement action escalating to a Priority One case.
Response Time: Staff will attempt to respond to Priority Two issues initially within 3- 5 business days after a complaint is received.
3. Priority Three (Low): Technical code violations. Priority Three violations are those violations that do not pose an imminent or potential threat to the public health or safety or the environment, but which may, if not abated, compromise the welfare of the community and reduce the quality of life for residents and businesses:
Violations in this category include activities which are violations of various municipal and zoning codes but pose no near-term threat to the public health and safety or the environment.
Violations might include illegally parked vehicles, debris accumulation on properties, sign code violations and various other zoning code violations. If Priority Three violations are noted in conjunction with Priority One or Two cases, compliance efforts will include Priority Three issues as well.
In addition, the number of open complaints submitted by anyone is limited to five complaints at a time. This limit of five does not apply to Priority One (High) Tier complaints.
Code Enforcement Staffing & Resources
The Code Enforcement team has two very capable, well-trained, and dedicated officers who have a deep understanding of the community. The Code Enforcement team currently has a vacant hybrid code enforcement/building inspector position. The position has been difficult to recruit and may evolve into a different position to support code enforcement activities. The Chief Building Official (CBO) position was filled at the end of May 2026 and supervises the team and consultants; prior to this, the CBO role was vacant for nearly three years.
Since 2025, the City has contracted with West Coast Code Consultants (WC3) and CSG Consultants to provide code enforcement augmentation. Currently, CSG has a part-time code enforcement officer focused on proactive enforcement on Priority Three violations while our two City code enforcement officers work on all priorities.
The increased volume of cases, combined with staffing limitations, has made investigating, addressing, and escalating code enforcement cases challenging. To better address code enforcement challenges, the code enforcement team will need to invest in better technology to manage and automate case workflows, set up and develop processes for hearing officers, and potentially expand support staff.
272
STAFF INFORMATIONAL REPORTS 13.2
Potential Strategies
Staff has identified the following areas to continue research and explore for improvements:
Code Enforcement Officers spend a lot of time and effort just processing paperwork and scheduling inspections. Subscribing to code enforcement specialty software and adding or contracting for office support would improve efficiency. This could boost production by more than 25% and make workflow processes more refined and consistent. Staff will raise this software option at the next round of considerations for the IT Strategic Plan such that they are included in one of the upcoming fiscal years. We anticipate such software will not exceed $70,000 collectively in annual licenses but may cost more to implement. When such projects are prioritized, they will return to the Council as IT project budgets. The office support contracting will cost approximately $75,000 annually, which would return to you as a future budgetary request.
Equally challenging is determining and analyzing the kind of code violations that exist in the community and the effectiveness of code enforcement actions. Additional software could help gather and analyze violations, produce heat maps and then document the effectiveness of different code enforcement actions. In combination with code enforcement specialty software, some communities have seen over 70% compliance on courtesy notices alone with noticeable improvements in the community. With the number of cases and workload, converting the existing vacant hybrid code enforcement/building inspector position to a code enforcement position or continuing a contract for part-time code enforcement officer would ensure timely processing and closing of code enforcement cases. The current part-time code enforcement officer contract has processed more than 210 cases between January 2025 and July 2026. The funding approved for that contact will be exhausted in December. The contract costs approximately $150,000 annually and would return to the City Council as a budgetary request.
Difficult cases require issuing citations and having a process for the applicant to appeal those citations to a hearing officer. Currently, we do not have this process established.
We need to develop the process, issue a request for proposals (RFP), and then contract with hearing officers, which would likely cost approximately $50,000 annually. Some cases are especially difficult to enforce and close. Some examples are front yard fences that exceed 48 inches and paved-over front yards used for additional parking. We know there are hundreds of these violations, but perhaps a different approach is required.
One would be to realign the Municipal Code to reflect closer what is actually happening in the community. Another is to establish a policy that would allow existing violations to continue, but any improvements after a certain date would be acted on and enforced. Of course, a third option is to enforce the requirements as they currently stand. 273
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CE Specialty Software Annual Subscription $15,000
Analytic Software Annual Subscription $55,000
Office Support Contract* Part-Time (1,000 hrs.) $75,000 Code Enforcement Officer Contract* Part-Time (1,000 hrs.) $150,000 Hearing Officer Contract Part-Time (As needed) $50,000
*May be able to reclassify existing vacant position to fill or supplement Summary and Next Steps
Staff is following up on the potential strategies to better address Tier Three code violations discussed above. As staff is able to gather more data, such as approximations of how many such violations are occurring around the City, we will return to the City Council with proposed solutions and requests that the Council prioritize which cases to address within Tier Three so that staff may focus our time and efforts according to your priorities. In certain situations, staff may also request appropriate revisions to the Municipal Code. Finally, staff may also return with proposed changes to the Position Control Resolution to repurpose the vacant hybrid code enforcement/building inspector position.
These changes will not happen overnight. Staff will return to you with sizable portions to consider, but making critical changes like these will happen over the next few years. It will be some time before anyone sees critical change in the community, but change is already happening given we anticipate opening over six hundred Code Enforcement cases this year.
Fiscal Impact
There is no fiscal impact on this item at this time.
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin, board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
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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 No. 57-2021
2. Resolution No. 4610 (2015)
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RESOLUTION NO. 57 - 2021
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF EAST PALO AL TO
UPDATING THE PRIORITIES FOR CODE ENFORCEMENT IMPLEMENTATION WHEREAS, the City of East Palo Alto Building Division ("Building Division") of the Community and Economic Development Department ("CEDD") is responsible for implementing and enforcing laws, codes and regulations that maintain public health and safety; and WHEREAS, the Building Division, through its code enforcement officers, enforces the East Palo Alto Municipal Code, Zoning Code, and the State Health and Safety Codes including, but not limited to, the California Building Code (Title 24), and Substandard Buildings and Unpermitted Occupancies (Title 25); and
WHEREAS, the City Council's Adopted Priority Areas include: Priority #3 to 11lncrease Organizational Effectiveness and Efficiency" and Priority #6 to "Create a Healthy and Safe Community;" and
WHEREAS, the City Council allocates funding and staffing to implement a code enforcement program to assure compliance with City and State building, and zoning regulations, provide for a healthy and safe community, and to reduce blight throughout the City; and WHEREAS, on April 21, 2015, the City Council adopted Resolution No. 461 O establishing "Priorities for Code Enforcement" to guide the allocation of staff and other resources to most efficiently carry out code enforcement activities in the City; and
WHEREAS, at the March 16, 2021 City Council meeting, the City Council considered programmatic updates to the City's existing Code Enforcement program and Resolution No. 4610; and WHEREAS, after deliberation, the City Council directed City staff to return with a revised "Priorities for Code Enforcement" that imposes a limit on anonymous code enforcement complaints for Priority Two (Medium) and Priority Three (Low) Tier complaints; and
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO AL TO HEREBY:
1. Rescinds Resolution No. 461 O; and
2. Adopts the attached revised "Priorities for Code Enforcement," as set forth in Exhibit A, attached hereto and incorporated herein by this reference. to guide the allocation of staff and other resources to most efficiently carry out code enforcement activities in the City. 1 of 4
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Attachment: Resolution No. 4610 (1678 : Follow up to Code Enforcement) 283
STAFF INFORMATIONAL REPORTS 13.3
EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 6, 2026
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Alec Nicholas, Special Projects Manager
Humza Javed, Public Works Director
SUBJECT: Update on the City’s SAFER Bay Project
Recommendation
Receive an informational presentation on the City of East Palo Alto's SAFER Bay Project, including an update on the status of the design phase.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Public Infrastructure and Utilities
Public Health, Safety, and Quality of Life
Background
The SAFER Bay Project (Strategy to Advance Flood protection, Ecosystems and Recreation along San Francisco Bay) is a regional shoreline flood protection program extending along approximately seven miles of San Francisco Bay shoreline in East Palo Alto and Menlo Park.
The San Francisquito Creek Joint Powers Authority (SFCJPA) developed the program through feasibility analysis, preliminary design and environmental review, establishing the alignment, the level of flood protection, and the habitat and public access elements. Construction-level final design is then carried out by each city within its own jurisdiction. This report concerns the City of East Palo Alto's portion of that program.
The City's project consists of two reaches. The South of Bay Road (SOBR) reach runs approximately one mile along the Bay Trail from San Francisquito Creek to Bay Road and 284
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consists of an earthen levee with an embedded floodwall and an ecotone slope, together with habitat restoration and public access improvements. The second reach, North of Bay Road (NOBR), extends from Bay Road to high ground near Tara Street. Completing both reaches delivers the full extent of flood protection analyzed in the Federal Emergency Management Agency (FEMA) Benefit Cost Analysis that supports the project's grant funding.
The project is funded primarily through FEMA Hazard Mitigation Grant Program (HMGP), under a 75 percent federal and 25 percent local cost share. The current design phase is scheduled to be completed by the end of October 2026 in accordance with the grant schedule.
Following a competitive procurement initiated by the City’s Request for Proposals (RFP) process on December 13, 2024; and conducted in accordance with 2 CFR Part 200, the City executed an agreement with Sherwood Design Engineers on August 11, 2025 for design, permitting and bid support of the SOBR reach. Sherwood's team includes specialty subconsultants in structural and marine engineering, geotechnical engineering, habitat restoration, survey, cost estimating, and community engagement. The City then initiated a separate competitive procurement, issuing a Request for Proposals on February 4, 2026, and on May 19, 2026 the City Council authorized an agreement with Sherwood Design Engineers to advance the NOBR reach from its existing preliminary design level through final design and bid support.
Design of the South of Bay Road reach began in mid-2025. The design team completed utility research, topographic and boundary survey, and geotechnical investigation along the alignment, then established the design criteria and basis of design governing the work. Successive design submittals followed, with 60 percent plans, specifications and engineer's estimate issued in June 2026. The North of Bay Road reach advanced from its preliminary design level through a 30 percent submittal in early summer 2026. The City completed a full technical review of each submittal and issued consolidated comments, which the design team resolved and carried forward. The two reaches have since been combined, and the City reviewed the 90 percent plans, specifications, estimate and related deliverables and issued consolidated comments in September 2026.
Environmental review and permitting have proceeded in parallel with design. The SFCJPA circulated the Draft Environmental Impact Report (EIR) in December 2025 and certified the final EIR in May 2026. The City has prepared a draft California Environmental Quality Act (CEQA) Addendum addressing design refinements within both reaches that have occurred since the environmental document was prepared.
Coordination is ongoing with the agencies that will issue project permits, including the U.S. Army Corps of Engineers, the San Francisco Bay Regional Water Quality Control Board, the Bay Conservation and Development Commission (BCDC), the California Department of Fish and Wildlife, and the federal resource agencies. The project was presented to the BCDC Design Review Board and Engineering Criteria Review Board in June 2026, and revisions responding to BCDC comments will be presented to both boards in fall 2026. The City has also held two public workshops in East Palo Alto, and community input from those workshops has been incorporated into the design.
Analysis
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The project is on schedule to complete 100% design by the end of October 2026 and provide the required deliverables to California Governor's Office of Emergency Services (CalOES) and FEMA for their review in compliance with the HMGP grant deadline.
Fiscal Impact
There is no fiscal impact associated with receiving this informational update. Design of the SAFER Bay Project is funded through the FEMA Hazard Mitigation Grant Program under a 75 percent federal and 25 percent local cost share, with the local share provided through previously appropriated City funds. Any future contract actions or appropriations required to complete final design, permitting or construction will be brought to City Council for consideration under separate items.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The proposed action does not constitute a “project” with the meaning of the 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. 286
14.1 Inclusionary Housing Alternative Compliance Option for West Bayshore-Newell Improvements at Woodland Park
THIS ITEM HAS BEEN CONTINUED TO OCTOBER 20,2026.
A STAFF REPORT IS FORTHCOMING.
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14.2 Inclusionary Housing Alternative Compliance Option for the O’Keefe-Manhattan Improvements at Woodland Park
THIS ITEM HAS BEEN CONTINUED TO OCTOBER 20,2026.
A STAFF REPORT IS FORTHCOMING.
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