Agenda packet — Foster City City Council, November 18, 2024 (part 1 of 3)

CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

Members of the public wishing to speak will be asked to fill out a Request to Speak Form. Forms will be accepted until the staff presentation on an agenda item ends, or until the public comment period on non agenda items is closed. For special meetings, public comment is limited to item(s) on the agenda only.

To Observe the Meeting via Teleconference/Video Conference:

To access the meeting by computer / smartphone, go to: https://fostercityorg.zoom.us/j/82592136594 To dialin via phone:
16694449171 or
14086380968
And enter Webinar ID: 825 9213 6594
To Participate in the Meeting by Providing Public Comment via Teleconference/Video Conference:

During the Meeting: Live verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public comment period for the agenda item you wish to address. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number for dialin attendees. Please clearly state your full name for the record at the start of your public comment.

Before the Meeting: Written public comments for the record may be submitted in advance by 4:00 p.m. the day of the meeting by email to: [email protected] and will be made part of the written record but will not be read verbally at the meeting. Written public comments submitted by email should adhere to the following:

Clearly indicate the Agenda Item No. or specify “Public” in the Subject Line for items not on the agenda Include the submitter’s full name (Recommended but not required) Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting.

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, November 18, 2024 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation from San Mateo County Libraries on Fiscal Year 20232024 Annual Report

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

Information may be received, placed on a future agenda, or referred to the appropriate City staff. FCMC 2.08.240 Addressing the Council. "...Each person desiring to address the Council shall step up to the public rostrum after being recognized to speak by the presiding officer, shall state his/her name and address for the record, state the subject he/she wishes to discuss, state who he/she is representing if he/she represents an organization or other persons and, unless further time is granted by majority vote of the Council, shall limit his/her remarks to three minutes. The City Council may vary the time limit for any speaker, if it deems this necessary." Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

6. CITY/EMID CONSENT CALENDAR
All matters listed under Consent Calendar are considered to be routine by the City Council/EMID Board of Directors and will be enacted by one motion unless removed by a member of the Council/Board, staff, or public. There will be no separate discussion on these items unless a citizen or a Council/Board member so requests.

This section includes minutes, ordinances for adoption, resolutions for adoption, and other business as needed. If discussion is required, that item will be removed from the Consent Calendar and will be considered separately after approval of the remaining items on the Consent Calendar. Vote may be by roll call.

6.1. City/EMID Regular Meeting Minutes of November 4, 2024

6.2. A Resolution of the City Council of the City of Foster City Authorizing the Police Department to Enter into a Data Sharing Memorandum of Understanding (MOU) With the San Mateo County Sheriff’s Office for a Data Aggregation Platform
a) Staff Report
b) Adopt Resolution

6.3. a) A Resolution of the City Council of the City of Foster City Approving Contract Amendment No. 1 to the Agreement with HIP Housing Affordable Ventures (HHAV) for Property Management Services for Workforce Housing in an Amount Not to Exceed $60,040 to Increase the Agreement Total from $36,960 to $97,000 and Other Revisions; and Authorizing the Mayor to Execute the Amendment; and
b) A Resolution of the City Council of the City of Foster City Approving Contract Amendment No. 1 to the Agreement with HIP Housing Affordable Ventures (HHAV) for Property Management Services for the Existing Unite Purchase Program (EUPP) Units for a Deduction of $109,600 to Lower the Contract Maximum from $167,600 to $58,000, and Other Revisions; and Authorizing the Mayor to Execute the Amendment
c) Staff Report
d) Adopt Resolutions

6.4. 2024 Asset Management Report for CityOwned Workforce Housing at 501 Pilgrim Drive
a) Staff Report
b) By Minute Order, Receive and Accept Report

7. PUBLIC HEARINGS

7.1. A Public Hearing to Hear and Receive Comments Regarding Various Municipal Code Amendments, Title 17 for Housing Element Implementation for 2024
a) Staff Report
b) Open Public Hearing
c) Receive Public Testimony
d) Close Public Hearing
e) Action An Ordinance of the City of Foster City Adopting Text Amendments to Various Chapters Within Title 17, Zoning, of the Foster City Municipal Code to Implement the RHNA 6 Housing Element for the 2023 2031 Planning Period and Comply with Recent Changes in State Law and Finding That the Amendments are within the Scope of the Environmental Impact Report Prepared Under the California Environmental Quality Act (CEQA) for the Housing Element and Safety Element Update (SCH#2022010509). – Rz20240012
i) Introduce Ordinance by title only, by motion waive further reading ii) By motion, pass ordinance to second reading

7.2. A Public Hearing to Hear and Receive Community Input and Provide Direction to Staff Regarding the Submitted Draft Maps and Sequence of Elections for DistrictBased Council Elections and Introduction of an Ordinance to Provide for the Election of Councilmembers by Five Districts; Establish District Boundaries and Election Order of Districts (to start at a time certain 7:00 p.m.)
a) Staff Report
b) Open Public Hearing
c) Receive Public Testimony
d) Close Public Hearing
e) Action Conduct the fourth public hearing and
i) Introduce Ordinance by title only, by motion waive further reading ii) By motion, pass ordinance to second reading

7.3. A Public Hearing to Hear and Receive Comments Regarding the Draft Climate Action Plan Update and Initial Study/Negative Declaration a) Staff Report
b) Open Public Hearing
c) Receive Public Testimony
d) Close Public Hearing
e) Action – A Resolution of the City Council of the City of Foster City Adopting the Initial Study/Negative Declaration for the Foster City Climate Action Plan 2024 Update
f) Action – A Resolution of the City Council of the City of Foster City Adopting the Foster City Climate Action Plan 2024 Update (CEQA Status: Adopted Negative Declaration for the Climate Action Plan 2024 Update)

8. REPORTS

8.1. Parks Master Plan Project (CIP 301682) – Project Update: Park Assessments, Park Usage, and Demographics and Trends Reports a) Staff Report
b) Action By Minute Order, Receive and Accept Report

8.2. Wastewater Treatment Plant Master Plan Improvements Project (CIP 455 652) – Clean Water Program – Update for Quarter 3 – July Through September 2024
a) Staff Report
b) Action By Minute Order, Receive and Accept Report

9. COMMUNICATIONS

9.1. City/District Warrants of Demands were Processed and Issued on October 24, 2024, and October 30. 2024
a) Information Item Only
b) No Action Required

10. CITY/DISTRICT MANAGER REPORTS, COUNCIL/BOARD STATEMENTS AND REQUESTS, AND COUNCIL LIAISON REPORTS
City/District Manager and Council/EMID Board Members report on their various assignments and liaison roles and Council/EMID Board requests for scheduling future items.

11. ADJOURNMENT
The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 2863250 or [email protected] at least 48 hours in advance of the meeting. The City has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and resolving any doubt in favor of accessibility.

That procedure for receiving and resolving requests for accommodation is available at the City Clerk’s Office. All meetings are conducted in a manner consistent with applicable civil rights and nondiscrimination laws.

Any writings or documents provided to a majority of the City Council or EMID Board regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the City Clerk Department at City Hall located at 610 Foster City Boulevard during normal business hours and at the meeting.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) City Council meetings on https://www.fostercity.org/community/page/fctvlivestream:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

1 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, November 18, 2024 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation from San Mateo County Libraries on Fiscal Year 20232024 Annual Report

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 4, 2024

6.4. 2024 Asset Management Report for CityOwned Workforce Housing at 501 Pilgrim Drive
a) Staff Report
b) By Minute Order, Receive and Accept Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Parks Master Plan Project (CIP 301682) – Project Update: Park Assessments, Park Usage, and Demographics and Trends Reports a) Staff Report
b) Action By Minute Order, Receive and Accept Report

9. COMMUNICATIONS

9.1. City/District Warrants of Demands were Processed and Issued on October 24, 2024, and October 30. 2024
a) Information Item Only
b) No Action Required

11. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

2 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, November 18, 2024 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation from San Mateo County Libraries on Fiscal Year 20232024 Annual Report

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 4, 2024

6.4. 2024 Asset Management Report for CityOwned Workforce Housing at 501 Pilgrim Drive
a) Staff Report
b) By Minute Order, Receive and Accept Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Parks Master Plan Project (CIP 301682) – Project Update: Park Assessments, Park Usage, and Demographics and Trends Reports a) Staff Report
b) Action By Minute Order, Receive and Accept Report

9. COMMUNICATIONS

9.1. City/District Warrants of Demands were Processed and Issued on October 24, 2024, and October 30. 2024
a) Information Item Only
b) No Action Required

11. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

3 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, November 18, 2024 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation from San Mateo County Libraries on Fiscal Year 20232024 Annual Report

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 4, 2024

6.4. 2024 Asset Management Report for CityOwned Workforce Housing at 501 Pilgrim Drive
a) Staff Report
b) By Minute Order, Receive and Accept Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Parks Master Plan Project (CIP 301682) – Project Update: Park Assessments, Park Usage, and Demographics and Trends Reports a) Staff Report
b) Action By Minute Order, Receive and Accept Report

9. COMMUNICATIONS

9.1. City/District Warrants of Demands were Processed and Issued on October 24, 2024, and October 30. 2024
a) Information Item Only
b) No Action Required

11. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

4 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, November 18, 2024 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation from San Mateo County Libraries on Fiscal Year 20232024 Annual Report

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 4, 2024

6.4. 2024 Asset Management Report for CityOwned Workforce Housing at 501 Pilgrim Drive
a) Staff Report
b) By Minute Order, Receive and Accept Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Parks Master Plan Project (CIP 301682) – Project Update: Park Assessments, Park Usage, and Demographics and Trends Reports a) Staff Report
b) Action By Minute Order, Receive and Accept Report

9. COMMUNICATIONS

9.1. City/District Warrants of Demands were Processed and Issued on October 24, 2024, and October 30. 2024
a) Information Item Only
b) No Action Required

11. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

5 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, November 18, 2024 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan

4. SPECIAL PRESENTATIONS

4.1. Presentation from San Mateo County Libraries on Fiscal Year 20232024 Annual Report

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City/EMID Regular Meeting Minutes of November 4, 2024

6.4. 2024 Asset Management Report for CityOwned Workforce Housing at 501 Pilgrim Drive
a) Staff Report
b) By Minute Order, Receive and Accept Report

7. PUBLIC HEARINGS

8. REPORTS

8.1. Parks Master Plan Project (CIP 301682) – Project Update: Park Assessments, Park Usage, and Demographics and Trends Reports a) Staff Report
b) Action By Minute Order, Receive and Accept Report

9. COMMUNICATIONS

9.1. City/District Warrants of Demands were Processed and Issued on October 24, 2024, and October 30. 2024
a) Information Item Only
b) No Action Required

11. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

6 CITY OF FOSTER CITY/

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
REGULAR MEETING OF NOVEMBER 4, 2024

MINUTES

CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The Regular Meeting of November 4, 2024 of the City Council of the City of Foster City, sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID), was called to order at 6:30 p.m. by Mayor/President Patrick Sullivan.

This meeting was held as a hybrid meeting.

ROLL CALL
The Deputy City Clerk called the roll:

PRESENT: Councilmembers/ex officio Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan.

ABSENT: None.

STAFF PRESENT: Stefan Chatwin, City/District Manager; Benjamin Stock, City Attorney/District Legal Counsel; Marlene Subhashini, Assistant City Manager; Diane Pitman, Administrative Services Director; Derek Schweigart, Parks and Recreation Director; Andrew Brozyna, Public Works Director; Tracy Avelar, Police Chief; Waqas Hassan, Assistant Finance Director; Rob Lasky, IT Manager; Katherine Estrada, Deputy City Clerk; Shuli Chen, Video Technician; and Priscilla Schaus, Communications Director/City Clerk/District Secretary.

PUBLIC
The following people addressed the City Council via email:

1. Evan Adams, regarding charter cities; and

2. Chris Tian, regarding robotics teams.

CONSENT CALENDAR
Motion by Vice Mayor/Vice President Jimenez, seconded by Mayor/President Sullivan, and carried unanimously, 5-0-0, approving the following items on the City/District Consent Calendar:

6.1 6.1 Minutes

7 City/EMID Consent Calendar

1. City/EMID Regular Meeting Minutes of October 7, 2024;

2. City Ordinance No. 683, “ An Ordinance of the City of Foster City Amending Title 17, “Zoning,” by Adding a New Chapter 17.79, Two-Unit Developments and Urban Lot Splits, in Accordance with California Senate Bill 9 (SB 9) and Finding That the Proposed Amendments to Title 17 are “Not a Project” Under California Environmental Quality Act (CEQA) Pursuant to Government Code Sections 65852.21(J) and 66411.7(N) - RZ2024-0010 (First Reading October 21, 2024);”

3. City Resolution No. 2024-112, “A Resolution of the City Council of the City of Foster City Authorizing the Award of an Agreement to Thermal Mechanical Inc. in the Amount of $28,277 Annually for Citywide Heating, Ventilation and Air Conditioning (HVAC) System Programmed Maintenance and System Repair from January 1, 2025, Through December 31, 2027, with the Option to Extend Through December 31, 2029 and Authorizing Time and Materials Rates for Unforseen Repairs, Not to Exceed $60,000, or Any Future Limit that May Be Adopted by City Council, for Each Single Repair for an Amount Not to Exceed $150,000 Annually; and Finding that this Action is Not Subject to Review Under the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15301(Class 1-Existing Facilities);”

4. City Resolution No. 2024-113, “A Resolution of the City Council of the City of Foster City Authorizing the Overhire of a Principal Management Analyst Position;”

5. EMID Resolution No. 3783, “A Resolution of the Board of Directors of the Estero Municipal Improvement District Authorizing the Overhire of a Principal Management Analyst Position;” and

6. EMID Resolution No. 3784, “A Resolution of the Board of Directors of the Estero Municipal Improvement District Authorizing Contract Amendment No. One (1) in the Amount of $596,290 to the Agreement with Freyer & Laureta, Inc., Dated October 10, 2024, for Professional Engineering Services for the Emergency Generator Replacements Project (CIP 455-705); and Finding Project Exempt from Review Under the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15032 (Class 2-Existing Facilities).”

ITEMS REMOVED FROM CONSENT CALENDAR
CITY/EMID REGULAR MEETING MINUTES OF OCTOBER 21, 2024.

Without objection from the City Council/Board of Directors, Mayor/President Sullivan removed this item from the Consent Calendar at the request of Councilmember/Director Kiesel.

Discussion ensued.

Motion by Councilmember/Director Kiesel, seconded by Councilmember/Director Froomin and carried unanimously, 5-0-0, approving the City/EMID Regular Meeting Minutes of October 21, 2024 with amendments to clarify that Councilmember/Director

6.1 6.1 Minutes

8 Kiesel had met with the appellants residing at 104 Challenge Court and had a phone call with a representative of the applicants residing at 106 Challenge Court prior to the meeting but did not meet with the applicants.

DENY AN APPEAL AND UPHOLDING A DECISION OF THE PLANNING COMMISSION

APPROVING AN ARCHITECTURAL REVIEW REQUEST TO RELOCATE AND

CONSTRUCT AN ADDITIONAL DRIVEWAY ON A SITE WHICH CONTAINS A SHARED

DRIVEWAY, ADD SIX NEW SKYLIGHTS, EXPAND AN EXISTING COVERED PATIO IN THE REAR, AND CONSTRUCT A TOTAL OF 770 SQUARE FOOT (SF) ADDITION TO

THE FRONT AND REAR ELEVATION OF THE SINGLE-STORY SINGLE-FAMILY RESIDENCE LOCATED AT 106 CHALLENGE COURT AND FIND THAT THE PROJECT

IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CEQA GUIDELINES SECTION 15301(EXISTING FACILITIES) – APN 094-042- 230 – AR2023-0004. CITY RESOLUTION NO. 2024-114.

Without objection from the City Council, Mayor Sullivan removed this item from the Consent Calendar.

Kirti Patel addressed the City Council via email and in person.

Charlie Bronitsky addressed the City Council via teleconference.

Discussion ensued.

Motion by Councilmember Froomin, seconded by Vice Mayor Jimenez, and carried, 4-0- 1, Councilmember Kiesel abstained, adopting City Resolution No. 2024-114, “A Resolution of the City Council of the City of Foster City Denying an Appeal and Upholding a Decision of the Planning Commission Approving an Architectural Review Request to Relocate and Construct an Additional Driveway on a Site Which Contains a Shared Driveway, Add Six New Skylights, Expand an Existing Covered Patio in the Rear, and Construct a Total of 770 Square Foot (SF) Addition to the Front and Rear Elevation of the Single-Story Single-Family Residence Located at 106 Challenge Court and Find that the Project is Exempt from the California Environmental Quality Act (CEQA) Under CEQA Guidelines Section 15301(Existing Facilities) – APN 094-042-230 – AR2023-0004” with an amendment to Exhibit A of the Resolution to remove the line, “Construction shall be in substantial conformance with the approved plans as it pertain to driveway access.”

ISSUANCE OF THE REQUEST FOR PROPOSALS (RFP) FOR PROFESSIONAL

SERVICES FOR THE FOSTER CITY BICYCLE AND PEDESTRIAN MASTER PLAN

PROJECT (BPMP) AND AUTHORIZING THE INITIATION OF THE CONSULTANT SELECTION PROCESS. CITY RESOLUTION NO. 2024-115.

Without objection from the City Council, Mayor Sullivan removed this item from the Consent Calendar.

Public Works Director Brozyna presented the staff report.

6.1 6.1 Minutes

9 Discussion ensued.

Motion by Councilmember Froomin, seconded by Councilmember Hindi, and carried unanimously, 5-0-0, adopting City Resolution No. 2024-115, “A Resolution of the City Council of the City of Foster City Approving and Authorizing the Issuance of the Request for Proposals (RFP) for Professional Services for the Foster City Bicycle and Pedestrian Master Plan Project (BPMP) and Authorizing the Initiation of the Consultant Selection Process” with amendments to further define “bicycles” to encompass standard bicycles, the three classes of e-bicycles, and scooters.

REPORTS
FISCAL YEAR 2023-2024 4TH QUARTER FINANCIAL UPDATE. MINUTE ORDER NO. 2000. TAKEN OUT OF AGENDA ORDER.

Without objection from the City Council, Mayor Sullivan took this item out of agenda order at the request of staff.

Assistant Finance Director Hassan presented the staff report.

Discussion ensued.

Motion by Councilmember Kiesel, seconded by Councilmember Froomin and carried unanimously, 5-0-0, adopting Minute Order No. 2000, to receive and accept the Fiscal Year 2023-2024 4th Quarter Financial Update.

PUBLIC HEARINGS

SUBMITTED DRAFT MAPS AND SEQUENCE OF ELECTIONS FOR DISTRICT-BASED COUNCIL ELECTIONS. (TO START AT A TIME CERTAIN OF 7:00 P.M.) Deputy City Clerk Estrada introduced Liz Stitt, representing Redistricting Partners, who presented the staff report.

Mayor Sullivan opened a public hearing to hear and consider community input regarding the submitted draft maps and sequence of elections for district-based elections.

The following people addressed the City Council via email:

1. Dimitra Efstathiou; and

2. Evan Adams.

Without objection from the City Council, Mayor Sullivan closed the public hearing.

Discussion ensued.

6.1 6.1 Minutes

10 By Consensus of the City Council, it was ordered to provide direction to the demographer that the preference was to use Draft Map B as a basis for revised maps. It was further directed for the demographer to create a live edit Draft Map B2 which divided the northern business district of the City into separate districts. Direction was also given for the demographer to create an additional map with revisions to Draft Map B to include maintaining as a community of interest, Asian Citizen Voting Age Population (CVAP) in District 1.

RECESS. The meeting recessed at 8:23 p.m. and reconvened at 8:29 p.m.

REPORTS
POLICY REQUIRING PROJECT LABOR AGREEMENTS. MINUTE ORDER NO. 2001.

Public Works Director Brozyna presented the staff report.

The following people addressed the City Council in person:

1. John Medina;

2. Sean Burke; and

3. K. Abe Talakai.

E.J. Cire addressed the City Council via teleconference.

Discussion ensued.

Motion by Councilmember Hindi, seconded by Vice Mayor Jimenez, and carried, 3-1-1, Councilmember Froomin voted “no” and Mayor Sullivan abstained, adopting Minute Order No. 2001, and providing policy direction to negotiate a Project Labor Agreement (PLA) with the San Mateo Building Trades Council to have a 5-year term duration minimum and maximum priority for local workforce hires in Foster City, San Mateo County, and the greater Bay Area, and bring this item back at a future City Council meeting.

COMMUNICATIONS
CITY/DISTRICT WARRANT OF DEMANDS. NO ACTION TAKEN.

City/District Warrants of Demands were Processed and Issued on October 4, 2024, and October 14, 2024, and ACH were processed on October 4, 2024.

CITY/DISTRICT MANAGER REPORTS, COUNCIL/BOARD STATEMENTS AND

REQUESTS, AND COUNCIL LIAISON REPORTS
Councilmember/Director Kiesel stated he attended the San Mateo County Library Joint Powers Authority Governing Board meeting on November 4.

6.1 6.1 Minutes

11 Councilmember/Director Froomin thanked Councilmember/Director Kiesel for attending the Rethink Waste Board meeting on October 24 as his alternate. On October 26, he attended the Halloween Spooktacular Festival hosted by the Parks and Recreation Department. He recognized the Foster City Police Department for being the top fundraising team for the 2024 San Mateo County Polar Plunge event on November 2. He requested to agendize a discussion of attendance requirements for resident appointees to City Committees and Commissions, and he received the support of Vice Mayor/Vice President Jimenez and Councilmember/Director Kiesel.

Vice Mayor/Vice President Jimenez stated she visited Bowditch Middle School on October 21 as part of the San Mateo-Foster City School District’s School Board Partner Visitations. On October 23, she participated in the Flag Decommissioning Ceremony at the Recreation Center with the Foster City Lions Club. On October 24, she attended the San Mateo-Foster City School District Educator Housing Task Force meeting. On October 26, she attended the Council of Cities meeting. On October 28, she attended a meeting with the San Mateo-Foster City School Board and PTA. She thanked Police Sergeant Grimaldi, San Mateo-Foster City School Board President Alison Proctor, and PTA presidents for facilitating the discussion around school safety.

Mayor/President Sullivan stated he attended the San Mateo-Foster City School District Educator Housing Task Force meeting on October 24. On October 26, he attended the City’s Halloween Spooktacular event and the Council of Cities meeting in Millbrae.

ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Sullivan adjourned the meeting. Meeting adjourned at 9:30 p.m.

6.1 6.1 Minutes

12 DATE: November 18, 2024

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager

FROM: Tracy Avelar, Police Chief
DEPARTMENT: Police
SUBJECT: DATA SHARING MEMORANDUM OF UNDERSTANDING (MOU) WITH THE SAN MATEO COUNTY SHERIFF’S OFFICE FOR A

DATA AGGREGATION PLATFORM

RECOMMENDATION
Is it recommended that City Council approve the attached Resolution authorizing the Foster City Police Department to enter into a data-sharing MOU with the San Mateo County Sheriff’s Office for a data aggregation platform.

EXECUTIVE SUMMARY
In 2023, the San Mateo County Sheriff’s Office secured grant funding from the California Board of State and Community Corrections (BSCC) Organized Retail Theft Grant. Part of these funds supported the development of a data aggregation platform, designed to facilitate seamless information-sharing among San Mateo County law enforcement agencies and enhance bi-directional data collaboration.

Approval of the MOU will enable the Foster City Police Department to leverage this platform, optimizing resource use and reinforcing public safety efforts through efficient data-sharing and collaborative engagement.

BACKGROUND
The Police Department currently participates in a data-sharing MOU with other law enforcement agencies in San Mateo County via the Sunridge Systems Records Incident Management System (RIMS). RIMS serves as the records management system for every agency in San Mateo County, as well as the computer aided dispatch

6.2 6.2 Staff Report

13 software for all agencies not contracted with Public Safety Communications. While RIMS enables data sharing, it requires users to search each agency’s data independently, leading to redundant work and limited efficiency. Additionally, users may need to log into multiple platforms to retrieve necessary information.

The proposed software data aggregation platform allows for centralized data access through a single, user-friendly application, streamlining data retrieval and improving operational efficiency. This platform is meant to enhance and simplify access to existing data, not replace existing records management software.

ANALYSIS
In January 2021, the San Mateo County Sheriff’s Office initiated a proof-of-concept project with C3 AI to develop a consolidated data aggregation platform. The software consolidates data from four core record systems into a single, unified interface, enabling efficient cross-agency data viewing. Daly City Police Department joined as a pilot agency, helping test the software’s ability to integrate data securely across multiple agencies. In September 2023, grant funding expanded the program to include additional agencies, including the Foster City Police Department.

This platform supports collaboration amongst participating agencies, and significantly improves investigative efficiency by simplifying data access. The platform is hosted within a Criminal Justice Information Services (CJIS)-compliant secure government cloud environment managed by the San Mateo County Sheriff’s Office. Its features support sole-source procurement, including resolution/correlation of person and vehicle identities into one record, and it already contains and will provide access to San Mateo County law enforcement data. This software solution enhances public safety by efficiently integrating disparate data sources into a single, searchable platform for law enforcement personnel to derive investigative insights in near real-time.

All shared data is managed securely and in compliance with applicable laws, with usage restricted to authorized personnel. The Foster City Police Department would contribute data to the platform and only participating agencies would have access to the data. All searches and queries into the platform are logged in an audit trail. The information residing in the shared data repositories would be used as a pointer system for investigative leads or guidance. Agencies may withdraw from the MOU with 90 days’ notice.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT

6.2 6.2 Staff Report

14 The San Mateo County Sheriff’s Office fully funds the application through the BSCC Organized Retail Theft Grant, allowing the Foster City Police Department access at no cost for approximately three (3) years. There is no in-house cost as the associated databases are configured for data sharing.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Public Safety and Social Equity
ATTACHMENTS:

Attachment 1 – Resolution
Attachment 2 – Memorandum of Understanding

6.2 6.2 Staff Report

15 2
7 4
8 RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY

AUTHORIZING THE POLICE DEPARTMENT TO ENTER INTO A DATA SHARING

MEMORANDUM OF UNDERSTANDING (MOU) WITH THE SAN MATEO COUNTY SHERIFF’S OFFICE FOR A DATA AGGREGATION PLATFORM

CITY OF FOSTER CITY
WHEREAS, in 2023, the San Mateo County Sheriff’s Office secured grant funding from the California Board of State and Community Corrections (BSCC) Organized Retail Theft Grant. Part of these funds supported the development of a data aggregation platform, designed to facilitate seamless information-sharing among San Mateo County law enforcement agencies and enhance bi-directional data collaboration; and WHEREAS, the proposed software aggregation platform allows for centralized data access through a single, user-friendly application, streamlining data retrieval and improving operational efficiency; and
WHEREAS, approval of the MOU will enable the Foster City Police Department to leverage this platform, optimizing resource use and reinforcing public safety efforts through efficient data-sharing and collaborative engagement; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby authorize the Police Chief to sign the agreement for the City of Foster City, a California municipal corporation on behalf of the Foster City Police Department, to enter into a Data Sharing Memorandum of Understanding (MOU) with the San Mateo County Sheriff’s Office for a Data Aggregation Platform.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 18th day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________

PATRICK SULLIVAN, MAYOR
ATTEST:
_______________________________

PRISCILLA SCHAUS, CITY CLERK

6.2 Attachment 1 - Resolution

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DATA SHARING

MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (hereinafter “MOU” or “Agreement”) is made and entered into this day of , 2024 by and between the San Mateo County Sheriff’s Office (“SMCSO”) and the following entities:
•the Town of Atherton, a California municipal corporation on behalf of the Atherton Police Department (“Atherton”),
•the City of Belmont, a California municipal corporation on behalf of the Belmont Police Department (“Belmont”),
•the City of Brisbane, a California municipal corporation on behalf of the Brisbane Police Department (“Brisbane”),
•the Town of Broadmoor a California municipal corporation on behalf of the Broadmoor Police Department, (“Broadmoor”),
•the City of Burlingame a California municipal corporation on behalf of the Burlingame Police Department, (“Burlingame”),
•the City of Colma, a California municipal corporation on behalf of the Colma Police Department (“Colma”)
•the City of Daly City, a California municipal corporation on behalf of the Colma Police Department (“Daly City”),
•the City of East Palo Alto, a California municipal corporation on behalf of the East Palo Alto Police Department (“East Palo Alto”),
•the City of Foster City, a California municipal corporation on behalf of the Foster City Police Department (“Foster City”),
•the City of Menlo Park, a California municipal corporation on behalf of the Menlo Park Police Department (“Menlo Park”),
•the City of Pacifica, a California municipal corporation on behalf of the City of Pacifica Police Department (“Pacifica”),
•the City of Redwood City, a California municipal corporation on behalf of the Redwood City Police Department (“Redwood City”),
•the City of San Bruno, A California municipal corporation on behalf of the San Bruno Department (“San Bruno”),
•the City of San Mateo, a California municipal corporation on behalf of the San Mateo Police Department (“San Mateo”),
•and the City of South San Francisco, a California municipal corporation on behalf of the South San Francisco Police Department (“South San Francisco”).

SMCO, Atherton, Belmont, Brisbane, Broadmoor, Burlingame, Colma, Daly City, East Palo Alto, Foster City, Menlo Park, Pacifica, Redwood City, San Bruno. San Mateo, and South San Francisco may collectively be referred to as “Parties” and individually referred to as “Party”.

6.2 Attachment 2 - Memorandum of Understanding

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RECITALS
WHEREAS, the Parties provide public safety services within their jurisdictions; and WHEREAS, the Parties have found it to be of mutual benefit to provide for the most efficient utilization of their resources and services in the application to public safety efforts within their jurisdictions; and
WHEREAS, the Parties are committed to cooperation and coordination in providing the highest level of safety services to the public, guided by the principle that cooperative efforts are in the public’s best interest; and
WHEREAS, the Parties support the sharing of information contained within its electronic data systems in furtherance of collaboration with other Criminal Justice Information Services (“CJIS”) Compliant public safety entities, through integrated systems of information technology that the Parties have developed, established, and/or licensed; and WHEREAS, the Parties recognize the need to protect each Party’s ownership and control over its shared information, to optimize the means through which shared information is accessed or analyzed, and to protect privacy and civil liberties in accordance with the law; and WHEREAS, the Parties further desire to share information contained within their electronic data systems under the conditions set forth in this MOU.

NOW, THEREFORE, for and in consideration of the covenants contained herein, the Parties hereby agree as follows:

AGREEMENT
I. PURPOSE
The purpose of this MOU is to provide a standardized approach and method of collection and sharing of information within their electronic data systems between the Parties and to facilitate bi-directional data collaboration among other CJIS Compliant public safety agencies in a manner that is consistent with the Parties’ obligations, rights and applicable laws and regulations, including the California Values Act.

II. DEFINITIONS AND OTHER TERMINOLOGY
Authorized Users: Personnel from the Member Agency that have the appropriate clearance and authority to utilize and access shared data as a function of their employment, in support of law enforcement or public safety investigatory activity.

Data: Electronic records, analyses, images, and other information associated with incidents, persons, or objects, originally created by Member Agency and existing in a Member Agency system or database.

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Contributed Data: Records originating from Member Agency that Member Agency has elected to share with other appropriate parties.

C3 AI Law Enforcement System: An integrated, AI-powered intelligence analysis software solution that enhances public safety by efficiently integrating disparate data sources into a single, searchable platform for law enforcement personnel to derive investigative insights in near real-time.

Data Repository: An enterprise data storage entity or entities into which data has been specifically partitioned for an analytical or reporting purpose.

Member Agency: The law enforcement or public safety organization whose appropriate authority has signed this Agreement and actively participates in bi-directional information sharing with other law enforcement or public safety entities through assistance from the SMCSO.

Shared Data: The aggregate pool of shared information from Member Agency and other contributing sources, made available via the SMCSO or facilitated by SMCSO-hosted technology systems, and/or efforts.

III. DATA ACCESS
A.Data contributed by each Party will be shared with all Parties that have entered into this MOU. The Parties agree not to facilitate information sharing between law enforcement entities that have not entered into agreements allowing such sharing.

B.Nothing in this Agreement shall be construed to require the Parties:

1. To disclose information owned and controlled by the Member Agency, if the Member Agency determines, in its sole discretion, it does not have the ability or authority to disclose;

2. To perform any act that it determines, is contrary to law or public policy;

3. To provide personnel, equipment, or services to the other party; or

4. To modify Data owned by another party or inhibit or restrict any other Party or Parties use of its own information technology system or systems.

IV. DATA SHARING AND SECURITY
A. Requirements
Each Member Agency and SMCSO has sole discretion to share the information it wishes to contribute and place restrictions on the recipient and/or audience to which contributed data may be shared. In gathering, sharing, and storing information, and in all other respects in performing

6.2 Attachment 2 - Memorandum of Understanding

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acts related to this Agreement, the parties will comply with all applicable laws, rules, and regulations and agree to enforce and maintain security requirements for the information stored or shared in their respective data repositories as specified in the California Values Act, the Information Practices Act, the Public Records Act, California Attorney General’s Model Standards and Procedures for Maintaining Criminal Intelligence Files and Criminal Intelligence Operational Activities and 28 Code of Federal Regulations (CFR) Part 23.

B. Security Standards
Member Agency and SMCSO agree to enforce and maintain security for shared data in compliance with all applicable laws, including but not limited to the California Department of Justice’s California Law Enforcement Telecommunications System Policies, Practices, and Procedures (CLETS PPP), the Federal Bureau of Investigation’s Criminal Justice Information System Security Policy (FBI CJIS Security Policy), the California Attorney General’s Model Standards and Procedures for Maintaining Criminal Intelligence Files and Criminal Intelligence Operational Activities and 28 Code of Federal Regulations (CFR) Part 23.

Member Agency and SMCSO shall store information, whether electronic or hardcopy, only in a manner that is compliant with all applicable physical security and cyber security requirements.

Data shall be retained, purged, and destroyed in accordance with all applicable standards, inclusive of each Party’s retention policy for their contributing data. Data exchange and user access shall be achieved using encryption, private networks, or other configurations that follow current best practices for information technology.

In compliance with the aforementioned CLETS PPP and FBI CJIS Security Policy, Member Agency grants authority to SMCSO the duties and responsibilities of CLETS security clearances, which includes state and federal level fingerprint-based background checks of all C3 AI employees who have unescorted physical or logical access to CLETS-related hardware, software or unencrypted criminal justice information (CJI) and maintenance of CLETS-related forms and records. Unless already known, Member Agency shall provide SMCSO the names of C3 AI employees who require unescorted physical or logical access to CLETS-related hardware, software or unencrypted CJI and request fingerprinting services prior to granting unescorted physical or logical access. SMCO agrees to provide fingerprinting services within thirty (30) days of a request.

C. Approved Utilization
The Parties agree to use information residing in the shared data repositories, including but not limited to the C3 AI Law Enforcement platform, as a pointer system for investigative leads or guidance, and not as the sole source of probable cause for law enforcement actions. The Parties further agree that the information hosted in the data repository shall be used for law enforcement purposes only and that only law enforcement agency employees that have been subject to background screening will be allowed access to the system. Background screenings must be fingerprint based including checks of both the state and national criminal history repositories. If a felony conviction of any kind is found, access to the data repositories shall not be granted.

6.2 Attachment 2 - Memorandum of Understanding

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D. Authorized Users
Each Party shall be responsible for training its users authorized to access information on the use and dissemination of information obtained from the C3 AI data repository system.

Specifically, users must have a clear understanding of the need to verify the reliability of information with the source agency that contributed the information, when using information for purpose such as obtaining search and arrest warrants, affidavits, subpoenas, etc. Parties must also fully train and credential accessing users regarding the proscriptions for using third party information. SMCSO and each Member Agency is responsible for management of its Authorized User accounts and the activities of its Authorized Users.

E. Contribution of Data into C3 AI Law Enforcement System:

Member Agency grants authority to SMCSO to provide contributed data into the C3 AI Law Enforcement system to optimize law enforcement sharing, search, reporting, or analytic capabilities. Additional connections will require further review or approval by SMCSO and Member Agency.

F. Additional Agencies:

Each Member Agency grants authority to the SMCSO to execute information sharing agreements with other California law enforcement agencies, and to expand, incorporate, and unify additional shared information from other California Law Enforcement agencies, except where explicitly denied by the Member Agency. SMCSO will notify Member Agency in advance of such changes for review and approval.

G. Sharing in Compliance with State and Federal Law
In gathering, sharing, and storing information, and in all other respects in performing acts related to this Agreement, the Parties will comply with all applicable laws, rules, and regulations, both those in existence at the time of execution of this MOU and those enacted subsequent to execution of this MOU, including but not limited to, to the extent applicable, the California Values Act (Government Code Section 7284 et seq.). SMCSO will, consistent with Government Code Section 7284.8(b) ensure that any database is consistent with the Attorney General’s guidance, audit criteria, and training recommendations which require that the databases are governed in a manner that limits the availability of information therein to the fullest extent practicable and consistent with federal and state law, to anyone or any entity for the purpose of immigration enforcement.

H. Ownership of Contributed Data
Member Agency remains the official custodian of its contributed data. Any request for information, including but not limited to inquiries under the California Public Records Act will be directed to the Member Agency that is the originator of the requested data.

6.2 Attachment 2 - Memorandum of Understanding

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V. COSTS
A. Operating Costs
Unless otherwise provided herein or in a supplementary writing, each Party shall bear its own costs in relation to this MOU and continued participation in or access to the data contributed by each Party. All obligations of and expenditures by the Parties will be subject to their respective budgetary and fiscal processes and subject to availability of funds pursuant to all laws, regulations, and policies applicable thereto. The Parties expressly acknowledge that this MOU in no way implies that any funds have been or will be appropriate for such expenditures.

VI. TERM OF AGREEMENT
A. TERM
This MOU shall be effective as of the last signature date of all Parties and will remain in effect until and unless it is terminated. This MOU will be reviewed every three (3) years thereafter for updates and consistency with applicable statutes and policies.

B. WITHDRAWAL
Any Party may withdraw from this MOU upon ninety (90) days’ written notice to all other Parties. Upon withdrawal, the Party’s access to data, and contributed data, shall also be terminated. All rights, obligations, responsibilities, limitations, and other understandings with respect to the disclosure and use of all information received during a Party’s participation in this MOU shall survive any withdrawal.

In the event one Party withdraws their participation from this MOU, this MOU shall survive and continue to be fully effective and binding on the remaining signatories.

VII. TERMINATION
This MOU will terminate automatically if two (2) or more Parties have withdrawn their participation from this MOU.

Upon termination of this MOU, each Party’s access to data, and contributed data, shall also be terminated. All rights, obligations, responsibilities, limitations, and other understandings with respect to the disclosure and use of all information received during each Party’s participation in this MOU shall survive any termination.

VIII. INDEMNIFICATION
Notwithstanding the provisions of Government Code Section 895.2, each Party shall defend, indemnify, and hold harmless other Parties (as well as their officers, agents, employees and representatives) from any and all losses, liability, damages, claims, suits actions and administrative proceedings resulting from the indemnifying Party’s own acts or omissions (including those of its officers, agents, employees or representatives) arising out of or incidental to the performance of any of the provisions of this MOU. Parties do not assume liability for the acts or omissions of persons other than their respective officers, its employees, agents, and

6.2 Attachment 2 - Memorandum of Understanding

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officers. The Member Agency hereby executes this MOU as of the date of execution by the individual below possessing the authority to sign on behalf of Member Agency:

IX. SIGNATORIES NOT AGENTS
Parties of this MOU shall have no authority, express or implied, to act on behalf of another Party’s signatory in any capacity whatsoever as an agent. The Parties shall have no authority, express or implied, pursuant to this MOU to bind each other to any obligation.

X. ASSIGNMENTS
Parties to this MOU may not assign any right or obligation pursuant to this MOU. Any attempted or purported assignment of any right or obligation pursuant to this MOU shall be void and of no effect.

XI. AMENDMENTS
This MOU may be amended by a written document signed by all Parties.

XII. SEVERABILITY
If any provision of this MOU is found by any court or other legal authority, or is agreed upon by the Parties, to be in conflict with any law or regulation, then the conflicting provision shall be considered null and void. If the effect of nullifying any conflicting provision is such that a material benefit of this MOU to a Party is lost, then the MOU may be terminated at the option of the affected Party, with the notice required in Section VIII. In all other cases, the remainder of this MOU shall be severable and shall continue in full force and effect.

XIII. NO THIRD-PARTY BENEFICIARIES
This MOU is intended solely for the benefit of the Parties to this MOU. Any benefit to any third party is incidental and does not confer on any third party to this MOU any rights whatsoever regarding the performance of this MOU. Any attempt to enforce provisions of this MOU by third parties is specifically prohibited.

XIV. WAIVER
A waiver by a Party of a breach of any of the covenants to be performed by another Party shall not be contrasted as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this MOU. In addition, the failure of any Party to insist upon strict compliance with any provision of this MOU shall not be considered a waiver of any right to do so, whether for that breach or any subsequent breach. The acceptance by a Party of either performance or payment shall not be considered a waiver of the performing or paying Party’s preceding breach of this MOU.

6.2 Attachment 2 - Memorandum of Understanding

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XV. AUTHORITY OF SIGNATORY TO BIND ENTITY
By signing below, each signatory warrants and represents that he/she/they executed this MOU in his/her/their authorized capacity and has legal authority or has received such authority from the Party, to bind the Party. This MOU may be executed in counterparts.

IN WITNESS WHEREOF, the Parties have executed this MOU by the signatures of the fully authorized representative of each Party.

Signed:

Name:

Title:

Agency:

Signed:

Name:

Title:

Agency:

Signed:

Name:

Title:

Agency:

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6.2 Attachment 2 - Memorandum of Understanding

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Signed:

Name:

Title:

Agency:

Signed:

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6.2 Attachment 2 - Memorandum of Understanding

25 DATE: November 18, 2024

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Sofia Mangalam, Community Development Director
Nori Jabba, Housing Coordinator
DEPARTMENT: Community Development
SUBJECT: CONTRACT AMENDMENTS TO AGREEMENTS WITH HIP

HOUSING AFFORDABLE VENTURES (HHAV) FOR PROPERTY

MANAGEMENT SERVICES FOR CITY-OWNED RENTAL

HOUSING

RECOMMENDATION
It is recommended that the City Council approve resolutions:

1. Approving Contract Amendment No. 1 to the Agreement with HIP Housing Affordable Ventures (HHAV) for Property Management Services for Workforce Housing in an amount not to exceed $60,040 to increase the agreement total from $36,960 to $97,000 and other revisions; and authorizing the Mayor to execute the amendment; and

2. Approving Contract Amendment No. 2 to the Agreement with HHAV for Property Management Services for the Existing Unit Purchase Program Units (EUPP) for a deduction of $109,600 to lower the contract maximum from $167,600 to $58,000 and other revisions; and authorizing the Mayor to execute the amendment.

EXECUTIVE SUMMARY
The City of Foster City owns 28 units of Below Market Rate (BMR) housing, including:

1. Six (6) units in four (4) properties located at 631/633 Comet Drive; 833/835 Comet

6.3 6.3 Staff Report

26 Drive (two duplexes), 833 Gull Avenue (single-family home), and 398 Chesapeake Avenue (single-family home). These units are commonly referred to as the Existing Unit Purchase Program (EUPP units).

2. 22 units at 501 Pilgrim Drive, commonly referred to as Workforce Housing.

HHAV provides property management services for both City-owned rental properties via two (2) separate agreements, one (1) for EUPP properties and one (1) for Workforce Housing. Staff has reviewed both contracts and seeks Council approval of amendments to the contracts to make the terms consistent, update the contract contacts, account for additional HHAV fees and payments for repairs and maintenance per the annual operating budget for each property, and update tasks, preferences, fees, and leasing guidelines in the scope of work, fee schedules, and leasing guidelines (Attachment #1, and Attachment #2).

BACKGROUND/ANALYSIS
EUPP Units
The City purchased the six (6) EUPP units over time: 631/633 Comet Drive and 833 Gull Avenue in 1997, 833/835 Comet Drive in 2008, and 398 Chesapeake Avenue in 2009.

The units are deed-restricted until 2066 to those with very low, low, or moderate incomes. Since they were purchased, they have served very low- and low-income families, and there has been very little turnover in the units over the years.

Workforce Housing
The 22-unit Workforce Housing property contains five (5) moderate-income two- bedroom units, five (5) low-income units, four (4) very low-income units, and eight (8) workforce units, one (1) of which is for the on-site property manager. The eight (8) units are rented at low-income rates, and one (1) unit is occupied by an on-site property manager who is an HHAV employee (State law requires an on-site property management employee for apartment developments of 16 or more units).

1. Contract Amendment No. 1 to the Agreement with HHAV for Property Management Services for Workforce Housing (See Attachment # 1) The agreement with HHAV for property management services was approved by the City Council on November 1, 2021 (City Resolution No. 2021- 159) and included services for set-up, initial lease-ups, move-ins, compliance, annual recertification and reporting, and property management. The agreement included a fee schedule consisting of $100 for setup fees and $500 initial lease-up fees ($13,200), and $23,760 for compliance and property management, a contract maximum of $36,960 (Attachment #3 for 2021 Contract for Workforce Housing).

On March 7, 2022, HHAV and staff presented a proposed budget and projected cash flow for Workforce Housing. The City Council adopted City Resolution No. 2022-22

6.3 6.3 Staff Report

27 authorizing the Finance Director to make the corresponding budget appropriations in the Workforce Housing Fund 139. Subsequently, on April 18, 2022, the City Council, via City Resolution No. 2022-42, approved an amendment to the revenue and expenditure budget for the remainder of FY 21-22. Budgets for FY 22-23, 23-24, and 24-25 were subsequently approved. However, a corresponding amendment to the agreement with HHAV was not executed.

Now that the property is fully operational and has been occupied for one year, the contract also needs to be amended to reflect the current and anticipated invoices billed by HHAV for annual property management fees, repairs, and maintenance, as well as to cover emergency repairs or other expenses. The proposed amendment also updates the scope of work to include additional work that HHAV performs to ensure the smooth operation of the buildings.

Table 1: Estimated Maximum Expenditures per the Updated Scope of Work Description Estimated Maximum
Repairs and Maintenance $35,000
Lease-Up Fees $2,000
Property Management Fees $50,000
Miscellaneous, Project Management, and Other
Expenses
$10,000
Total $97,000 per fiscal year
Staff recommends the following updates to the contract in Amendment No. 1 to the Property Management Agreement Services for Workforce Housing (Attachment # 1):

1. Contract Maximum and Fees: Increase the contract amount by $60,040 to a total for the Agreement of $97,000 per fiscal year for HHAV fees and property operations.

2. Term: Change the contract term from no termination date to a term of two (2) years with an option for renewal. Staff recommends this change because the current best practices include having a specific contract termination date to help ensure competitive pricing and services.

3. Notices: Update the contacts in the Notice section of the Agreement to reflect staff changes at HHAV and the City of Foster City.

4. Exhibits:

Exhibit A, Scope of Work: Clarify the services provided and create consistency for all City-owned BMR rental units.

Exhibit B, Consultant Fees: Reflect current rates, include all types of work billed, and provide for future rate increases.

Exhibit C, Insurance: no changes

6.3 6.3 Staff Report

28 Exhibit D, Lease Guidelines: add this Exhibit to be consistent with the EUPP Housing Agreement.

2. Contract Amendment No. 2 to the Agreement with HHAV for Property Management Services for EUPP Units
(Attachment #2)
The Agreement with HHAV for property management services for six (6) EUPP units was approved on February 24, 2021, and Contract Amendment No. 1 was approved by the City Council on March 18, 2024 (Attachments #5 and #6). It should be noted that HHAV has provided property management services for these units since its acquisition (1997, 2008, and 2009), and the Agreement was revised in 2021 to comply with the City’s current standard Agreement.

The Agreement and Contract Amendment No. 1 include monthly fees for property management services, emergency repairs, and project management services for projects over $10,000, such as a rehabilitation project. On March 18, 2024, Contract Amendment No.1 increased the contract maximum from $45,000 to $167,660 to cover emergency repair work for 833 and 835 Comet Drive. Now, the majority of the repair work has been completed, and the contract amount needs to be revised.

Table 2 shows anticipated expenditures for HHAV based on the Fee Schedule and Scope of Work (Attachment #2, Exhibits, Exhibit A-2 and B-2) Table 2: Estimated Maximum Expenditures per the Updated Scope of Work Description Estimated Maximum
Property Management Fees $18,000
Repairs and Maintenance $30,000
Miscellaneous, project management,
and other expenses
$10,000
Total $58,000 per fiscal year
Staff recommends the following changes in Contract Amendment No. 2 (Attachment #2, Exhibit A) for the EUPP units:

1. Contract Maximum and Fees: Reduce the contract maximum from $167,600 to $58,000, a reduction of $109,600. The fees included in the contract reflect HHAV monthly fees and operations fees. However, the units will need substantial maintenance and upgrades in the next fiscal year due to normal property aging and wear and tear.

Staff will prepare an Asset Report for the EUPP units in the coming months in

6.3 6.3 Staff Report

29 preparation for the FY 25-26 budget and may recommend an adjusted contract maximum at that time with one-time expenses included.

2. Term: Change the contract term from one (1) year to two (2) years with an option for renewal.

3. Notice: Update the contacts in the Notice section of the contract to reflect staff changes at HHAV and the City of Foster City.

4. Exhibits:
a. Exhibit A-2, Scope of Work: Clarify the services provided and make the Scope of Work consistent for all City-owned BMR rental properties. b. Exhibit B-2, Consultant Fees: Clarify HHAV monthly fees and fees for operations and make the format of the Fee Schedule consistent for City-Owned properties. c. Exhibit C, Insurance: No changes
d. Exhibit D, COVID-19 Attachment, not included in the 2021 Agreement, not applicable: Delete
e. Exhibit F-1, Leasing Guidelines: recommended changes are summarized below For the HHAV contract for the EUPP units, staff is proposing an amendment to update the preferences listed in Exhibit F, Leasing Guidelines, to be consistent with City Resolution No. 2023-3, which prioritizes supportive housing consistent with the Housing Element 2023-31, Policy H-E-1-a, Existing Unit Purchase Program – Opportunities for Supportive Housing:

H-E-1-a Existing Unit Purchase Program – Opportunities for Supportive Housing.

Implement the tenant preferences adopted in January 2023 for the Existing Unit Purchase Program so that when vacancies occur, housing providers have an opportunity to propose renting the unit to provide supportive housing for people with disabilities and if no acceptable proposals are received, then continue to maintain the existing units owned by the City as rentals for large very low and low income families.

Responsible Agency: Community Development Department, City Council Timeframe: As vacancies occur
Quantified Objectives: One (1) unit converted to supportive housing by 2031 Performance Metric(s): Number of units converted to supportive housing Funding Source: Affordable Housing Fund
In January 2023, the City Council adopted City Resolution No. 2023-3 to add supportive housing providers as the first preference priority for the EUPP units. Staff is recommending amendments to Exhibit F-1, Lease Guidelines, to revise the preferences to reflect updated preferences to comply with the 2023-2031 Housing Element.

California Environmental Quality Act
The approval of the amendments to the HHAV agreements is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and

6.3 6.3 Staff Report

30 California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.

FISCAL IMPACT
There is no fiscal impact associated with the two (2) requested contract amendments as there are funds available in corresponding Funds 122 and 139.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:

Attachment 1 – Resolution for Contract Amendment No. 1 for Workforce Housing Attachment 2 – Resolution for Contract Amendment No. 2 for EUPP Units Attachment 3 - Contract Amendment No. 1 for Workforce Housing Attachment 4 - Contract Amendment No. 2 for EUPP Units
Attachment 5 – 2021 Agreement for Property Management for Workforce Housing Attachment 6 – FY 24-25 Budget for Fund 139 Workforce Housing Attachment 7 – 2021 Agreement for Property Management for EUPP Units Attachment 8 – Amendment No. 1 to Agreement for Property Management for EUPP Units
Attachment 9 – FY 24-25 Budget for Fund 122 LMIHF

6.3 6.3 Staff Report

31 RESOLUTION NO. ____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY APPROVING CONTRACT AMENDMENT NO. 1 TO THE AGREEMENT WITH HIP

HOUSING AFFORDABLE VENTURES INC (HHAV) FOR PROPERTY MANAGEMENT SERVICES FOR WORKFORCE HOUSING IN AN AMOUNT NOT TO EXCEED $60,040 TO INCREASE THE AGREEMENT TOTAL FROM $36,960 TO $97,000 AND OTHER REVISIONS; AND AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT

CITY OF FOSTER CITY
WHEREAS, on November 1, 2021, the City of Foster City executed an agreement HHAV for property management of the Workforce Housing property located at 501 Pilgrim Drive, Foster City; and
WHEREAS, On March 7, 2022, HHAV and staff presented a proposed budget and projected cash flow for Workforce Housing, and the City Council adopted City Resolution No. 2022-22, authorized the Finance Director to make the corresponding budget appropriations in the Workforce Housing Fund 139; and
WHEREAS, on April 18, 2022, the City Council, via City Resolution No. 2022-42, approved an amendment to the revenue and expenditure budget for Fiscal Year (FY) 21-

22. Budgets for FY 22-23, 23-24, and 24-25 were subsequently approved; however, a corresponding amendment to the agreement with HHAV was not executed; and WHEREAS, now that the property is fully operational and has been occupied for one year, the contract also needs to be amended to reflect the current and anticipated invoices billed by HHAV for annual property management fees, repairs, and maintenance, as well as to cover emergency repairs or other expenses; and WHEREAS, staff wishes to ensure consistency in the agreements for the management of city-owned properties and recommends updates to the HHAV contract for Workforce Housing.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby:

Approve Contract Amendment No. 1 to the existing contract with HIP Housing Affordable Ventures, Inc. for property management services for the Workforce Housing Property dated December 13, 2021, in the amount of $60,040 to increase the annual Agreement total to $97,000 per fiscal year.

BE IT FURTHER RESOLVED, the Mayor is authorized to execute Contract Amendment No. 1, in a form approved by the City Attorney.

6.3 Attachment 1 - Resolution for Contract Amendment No. 1 for Workforce Housing

32 PASSED AND ADOPTED as a Resolution of the City Council of the City of Foster City at the regular meeting held on the 18th day of November 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.3 Attachment 1 - Resolution for Contract Amendment No. 1 for Workforce Housing

33 RESOLUTION NO. ____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY APPROVING CONTRACT AMENDMENT NO. 2 TO THE AGREEMENT WITH HIP HOUSING AFFORDABLE VENTURES INC. (HHAV) FOR PROPERTY MANAGEMENT

SERVICES FOR THE EXISTING UNIT PURCHASE PROGRAM (EUPP) UNITS FOR A DEDUCTION OF $109,600 TO LOWER THE CONTRACT MAXIMUM FROM $167,600 TO $58,000, AND OTHER REVISIONS; AND AUTHORIZING THE MAYOR TO

EXECUTE THE AMENDMENT

CITY OF FOSTER CITY
WHEREAS, on February 24, 2021, the City of Foster City executed an agreement with HHAV for property management of the six (6) EUPP units in Foster City; and WHEREAS, on March 18, 2024, the City Council approved Amendment No. 1 to the Agreement for the EUPP units, increased the contract maximum from $45,000 to $167,660 to cover emergency repair work for 833 and 835 Comet Drive; and WHEREAS, the majority of the repair work has been completed, and the contract amount needs to be revised; and
WHEREAS, the terms of the agreement for the Existing Unit Purchase Program need updating to include a revised contract maximum, contract termination date, a change in procedures for invoicing and payment, a change in contacts for notices, and changes to exhibits to reflect additional duties performed by HHAV, the current fees and fee structure, and leasing guidelines; and
WHEREAS, staff wishes to ensure consistency in the agreements for the management of city-owned properties and recommends updates to the HHAV contract for EUPP units.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby:

Approve Contract Amendment No. 2 to the existing contract with HIP Housing Affordable Ventures, Inc. for property management services for Existing Unit Purchase Program units dated February 24, 2021, in the amount of ($109,600) to lower the contract maximum from $167,600 to $58,000 per year.

BE IT FURTHER RESOLVED, the Mayor is authorized to execute Contract Amendment No. 2, in a form approved by the City Attorney.

6.3 Attachment 2 - Resolution for Contract Amendment No. 2 for EUPP Units

34 PASSED AND ADOPTED as a Resolution of the City Council of the City of Foster City at the regular meeting held on the 18th day of November 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.3 Attachment 2 - Resolution for Contract Amendment No. 2 for EUPP Units

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4 CITY OF FOSTER CITY
CONTRACT AMENDMENT NO. ONE (1)

AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT

FOR PROPERTY MANAGEMENT AND LEASING

FOR WORKFORCE HOUSING
DATE: November 18, 2024
ACCOUNT NUMBERS: 139-0846-419-42-46, 51, 62, 65

PROJECT NAME WORKFORCE HOUSING
TO: HIP HOUSING AFFORDABLE VENTURES

CHANGE REQUESTED BY CITY OF FOSTER CITY AND HIP HOUSING AFFORDABLE VENTURES, INC.

Based on mutual agreement, HIP Housing Affordable Ventures, Inc. and City of Foster City agree to amend the original Agreement dated December 13, 2021 (“Agreement”) pursuant to Section 3 of the Agreement for specified amounts, which are identified as follows:

ORIGINAL AGREEMENT AMOUNT: $36,960.00
AMOUNT EXPENDED TO DATE: $28,471.14
AMOUNT OF AMENDMENT NO. ONE (1): $60,040.00
REVISED TOTAL AMOUNT OF AGREEMENT: $97,000.00 per fiscal year

The parties agree that the Agreement shall be amended as set forth herein.

1. Section C.1, Services in the Agreement shall be amended to change all references from Exhibit A to Exhibit A-1.

2. Section C.2(a), Term; Termination in the Agreement shall be replaced to read as follows:
“(a) The term of this Agreement shall commence upon the date hereinabove written and shall terminate two years from the date of this Agreement, unless the term is extended by either party for an additional two years. Either party may exercise this option to extend the term by providing the other party with 90 days’ notice. If the other party does not agree to the renewal, then the term shall expire at the end of the term.”

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4 All other subsections of Section C.2 of the Agreement shall remain unchanged.

3. Section C.3. Compensation; Expenses; Payment shall be replaced in its entirety to read as follows:
“CITY shall compensate CONTRACTOR for all services performed by CONTRACTOR hereunder in an amount based upon CONTRACTOR’s hourly rates during the time of the performance of said services. A copy of CONTRACTOR’s hourly rates for which services hereunder shall be performed are set forth in CONTRACTOR’s fee schedule marked Exhibit “B-1” hereof, attached hereto and by this reference incorporated herein.

Notwithstanding the foregoing, the combined total of compensation and reimbursement of costs payable hereunder shall not exceed the sum of NINETY- SEVEN THOUSAND DOLLARS per fiscal year. Invoices for amounts in excess of these amounts shall not be paid unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services or incurring such costs and expenses by the City Manager (for contracts less than $50,000) or City Council (for contracts $50,000 or more) evidenced by motion duly made and carried and a written contract amendment having been executed.

Invoices shall be remitted electronically for payment on a monthly basis for monthly fees and within sixty (60) days of service for maintenance and repair work performed and by July 15 th of each year for work performed in June of any given fiscal year.

Invoices must clearly indicate the date of service and receipts for purchased supplies and equipment must be attached.”

4. Section C.15 in the Agreement shall be replaced in its entirety to read as follows:
“15. Notice. All notices required by this Agreement shall be given to the CITY and CONTRACTOR in writing, by first class mail, postage prepaid, addressed as follows:

CITY:

City of Foster City
610 Foster City Boulevard
Foster City, CA 94404-2299
Attention: Sofia Mangalam, Community Development Director [email protected]
CONTRACTOR:

6.3 Attachment 3 - Contract Amendment No 1. for Workforce Housing

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4 HIP Housing Affordable Ventures
1512 Stafford Street
Redwood City, CA 94063
Attention: Thatiane Avila, Director of Property Management [email protected]”

5. Section 22 of the Agreement is revised to read in its entirety as follows:
“This Agreement, including Exhibits A-1, B-1, C, and D comprise the entire Agreement.”

6. Exhibit A of the Agreement shall be replaced in its entirety with Exhibit A-1, attached hereto and hereinafter incorporated by reference.

7. Exhibit B of the Agreement shall be replaced in its entirety with Exhibit B-1, attached hereto and hereinafter incorporated by reference. In addition, the

8. Exhibit C is unchanged.

9. A new Exhibit D, attached hereto and hereinafter incorporated by reference, is added to the Agreement.

10.Except as specifically modified herein, all other terms and provisions in the Agreement shall remain unchanged.
[Signatures on Next Page]

6.3 Attachment 3 - Contract Amendment No 1. for Workforce Housing

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4 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. One (1) to be executed on the date first above written by their respective officers duly authorized in that behalf.

CITY OF FOSTER CITY:

Dated: _________________________________ Patrick Sullivan, Mayor
ATTEST:

Dated: ________________________________ Priscilla Schaus, City Clerk
APPROVED AS TO FORM:

Dated:

Benjamin Stock, City Attorney

HIP HOUSING AFFORDABLE VENTURES
INC:

Dated:

Kate Comfort Harr, Executive Director
Attachments:

Exhibit A-1, Revised Scope of Work
Exhibit B-1, Revised Fee Schedule
Exhibit D, Leasing Guidelines

6.3 Attachment 3 - Contract Amendment No 1. for Workforce Housing

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4 EXHIBIT A-1
CONSULTANT’S SCOPE OF WORK

WORKFORCE HOUSING PROPERTY MANAGEMENT SERVICES
Revised November 18, 2024
This Exhibit A-1 replaces Exhibit A of the Agreement between HIP Housing Affordable Ventures and the City of Foster City for the Workforce Housing Property located at 501 Pilgrim Drive, Foster City, CA, dated December 13, 2021.

HIP Housing Affordable Ventures, Inc. (HHAV) will provide property management and income and occupancy certification compliance services for 21 units located at 501 Pilgrim Drive (22 units total, including one unit occupied by an onsite property manager or maintenance technician) with the following designations of affordability as stipulated in the Affordable Housing Regulatory Agreement and Declarations of Restrictive Covenants, Document #2021-007087, dated January 15, 2021, between the City of Foster City and Summerhill Pilgrim Triton, and updated by City Council Resolution 2022-22:
• Four (4) units at Very Low-Income Designation (three one-bedroom units and one two-bedroom unit)
• Five (5) units at Low-Income Designation (four one-bedroom units and one two-bedroom unit)
• Five (5) units at Moderate Income Designation (all two-bedroom units) • Eight (8) units at Workforce designation (including the two ADA-accessible units, one additional one-bedroom unit, one additional two-bedroom unit, and four one-bedroom-den units.

1. Services to be Performed by Agent. Agent shall lease, operate, maintain, manage and repair the Property. Perform all usual and customary management functions to facilitate the efficient operation of the Properties for the purposes described in this Agreement. Agent shall perform these duties with due diligence. Without limiting the generality of the foregoing, Agent shall do all of the following:

A. Leasing. Agent shall advertise in the Foster City Islander and/or other media as determined in consultation with Owner when a vacancy occurs, manage a waitlist, select qualified tenants and lease the Properties in accordance with the Leasing Guidelines attached hereto as Exhibit D. The Leasing Guidelines may be changed from time to time by mutual agreement. Agent shall develop the forms of lease application and lease agreement to be used for the Properties, which forms shall be subject to the prior approval of Owner. Agent shall enter into the leases as agent on behalf of Owner. A copy of the lease application and fully-executed lease, along with the certification of income verification and household size on a Tenant Income Certification (TIC) form provided by Agent shall be sent to Owner within 15 days after execution of the lease. Agent shall maintain individual tenant files containing a copy of the lease, verification of income form, notices and all correspondence with the tenant. All tenant files shall be maintained a minimum of five (5) years after the tenant has vacated the Property.

6.3 Attachment 3 - Contract Amendment No 1. for Workforce Housing

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4 are paid directly to the Owner. On the 6th day of each month Owner shall notify Agent and Agent's designated Property Management Company when rent has not been received. Notification may be by email, letter or fax as determined by the owner.

C. Enforcement of Leases. Agent shall secure full compliance by each tenant with the terms of its lease. Upon default by a tenant, Agent shall pursue legal remedies in accordance with applicable California law for recovery of the leased premises. For this purpose, Agent is authorized to sign and serve in the name of the Owner such notices as are appropriate to institute and prosecute actions to evict tenants and to recover possession of the Property in the name of the Owner, to recover rents and other sums due and when expedient to settle, compromise and release such actions or suits or reinstate such tenancies. Agent shall keep Owner informed of such warnings and/or actions and shall follow any instructions of Owner as Owner may reasonably prescribe for the conduct of any such action. Agent may not pursue monetary damages against a tenant without the prior written consent of Owner.

D. Maintenance and Repair. Agent shall maintain the Properties in good condition and repair at all times. Agent shall quickly repair or cause to be repaired any item brought to its attention by Owner or a tenant or that is observed by the Agent. Agent shall perform site inspections at the end of the first month of tenancy and annually thereafter to ascertain the condition of the Properties. For this purpose, and as limited in this paragraph, Agent is authorized to make or cause to be made and supervise repairs, alterations, landscaping and decorating on the Properties. Agent may enter into service contracts with unaffiliated third parties for the performance of services hereunder, provided each contract shall be terminable by Owner upon 30 days written notice. Front yard landscaping shall be maintained by a landscaping firm hired by Agent. Any single expenditure in excess of $500, excluding labor for repairs and maintenance, or $10,000 for emergency repairs, shall require the prior written consent of Owner. Owner's prior consent shall not be necessary with respect to monthly or recurring operating charges and emergency repairs that are necessary, in the opinion of the Agent, to protect the Properties from damage, to prevent bodily harm or property damage, to avoid the suspension of services, to avoid penalties or fines and to maintain the services required under the lease to be provided to the tenant. Agent shall obtain three bids for any work which exceeds $10,000 and shall submit the bids to the Owner for approval. Agent shall work diligently to complete all repairs in a timely manner and in particular when a Property is vacant so the Property can be promptly leased to another tenant. Except under unusual circumstances, the Properties should be vacant no more than 30 days. Agent shall notify Owner whenever a Property will be vacant more than 30 days. Upon acquisition of a Property by Owner and upon the vacancy of a Property following the termination of a tenancy, Agent shall promptly inspect the Property and determine a course of action to perform all necessary repairs and improvements. Agent shall notify Owner of the course of action and unless Owner objects within 10 days from receipt of Agent's notice, Agent may proceed to perform the repairs and improvements. At the direction of the Owner, inspections, repairs and improvements may be performed by employees of the City of Foster City.

E. Taxes and Assessments. Taxes and assessments shall be paid directly by Owner and not by Agent. Agent shall promptly deliver to Owner notices relating to taxes and assessments received by Agent.

F. Employees. Agent shall hire, discharge and supervise all employees required for the operation and maintenance of the Properties. All employees performing

6.3 Attachment 3 - Contract Amendment No 1. for Workforce Housing

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4 work (other than the City employees specifically designated by Owner to perform inspection and repair work) shall be employees of Agent and not Owner. Agent shall comply with all applicable laws and regulations concerning worker's compensation, social security, unemployment insurance, hours of labor, wages, working conditions and all other rules and regulations governing employees.

G. Annual Budget. No later than March 1 of each year, Agent shall deliver to Owner a proposed budget for the following fiscal year (July 1 -June 30), for all major operating and other expenses including (i) repairs and maintenance of building components that in Agent’s estimation exceed $1,000; (ii) cleaning following the termination of a lease; (iii) landscaping; (iv) capital expenditures such as roof repairs and replacements; and (v) any other costs and expenses relating to the Properties. Owner shall accept or reject the proposed budget within 30 days after its receipt. If Owner rejects, Owner and Agent shall meet in good faith to resolve their differences. Once the budget is agreed upon, Agent shall perform its services in accordance with the budget. If additional properties are added, Agent shall modify the budget accordingly

2. Accounts.

A. Disbursements. Owner will make disbursements from the Operating Account to pay all expenses of the Properties which are the obligations of Owner and are authorized to be incurred by Agent under the terms of this Agreement, including Agent's Fees as described above in paragraph 4.

B. Security Deposits. Security deposits collected by Agent shall be submitted to Owner. Security deposits shaII be returned to tenants pursuant to the terms of the leases and in strict accordance with California law. Security deposits may be reimbursed to tenants via Agent.

3. Records. Agent shall establish and maintain a comprehensive system of, tenant and property records and work order log for the Properties separate and apart from any other properties Agent owns or manages. The work order log shall be submitted to Owner on the first of each month or upon request. All records shall be the property of Owner and shall be available for examination at reasonable hours by any authorized representative of Owner. For each expenditure, Agent shall have invoices submitted directly to the Owner for payment with the property address on each invoice.

4. Reports.

A. Monthly. At the end of the first month of a tenancy, Agent shall perform a site visit and inspection. Following the inspection, Agent shall send a written report of the inspection to the Owner.

B. Annually. On January 31 of each calendar year, Agent shall provide Owner with the following reports:
(i) A certification of the income of each current resident as of the date of the last income certification, the current rent charged each resident and the amount of any utilities included in the rent. Owner may specify the format for this report. (ii) An inspection report, including a list of any material physical defects in the Properties, including a description of any major repair or maintenance work to be performed in the following year.
(iii) A statement regarding the general management of the Properties, including information about tenant relations, communications from tenants, the physical condition of the Properties and any other information deemed relevant by Agent or requested by Owner.

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4 (iv) A list of the expiration dates of each lease.

A Summary of Services is as follows:

1. Set-up
• Review of relevant ordinance and documents, including loan documents. • Customization of compliance forms, analytics, and reports. • Meetings and calls with the City and HHAV staff to discuss process, deliverables, schedule, duties, and reporting requirements, requests, analytics, and schedule. • Preparation of marketing plan and file preparation.

2. Initial Lease-up and Filling of Vacancies
•Marketing the property pursuant to criteria and protocols established by the City and as stated in the City’s BMR Rental Housing Program Procedures and Guidelines.
•Showings of apartments to prospective applicants.
•Managing lottery process and developing and managing a waitlist, except that the City of Foster City may manage the waitlist for city employees, including first responders, if applicable, and if mutually agreed to by both parties. •Processing applications, collection of applications fees, and conducting credit and background checks.
•New move-in certifications and notifications to the city of tenant status. •Collection of deposit and initial rent.
•Initial tenant income certifications.
•Lease preparation and execution.
•File management.
•Filling vacancies within a sixty (60) day period to the extent feasible.

3. Compliance, Annual Recertifications, and Reporting
• Annual recertification of household occupancy and tenant income per BMR Rental Housing Program Procedures and Guidelines.
• Preparation of analytics and reports and presentation and/or submittal of report to the City of Foster City

4. Property Management
CONSULTANT will provide management team member with approximately 15 hours a week of their time devoted to the property. Duties shall be managed by CONSULTANT’S Director of Property Management and shall include:
• Lease management and enforcement.
• Managing reasonable accommodation requests.
• Tenant relations.
• Compliance with the City’s BMR Rental Housing Procedures and Guidelines as they pertain to property management.
• Monitoring rent and utility payments.
• Rent and utility payment notices as needed.

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4 • Management of third-party utility billing vendor, if applicable, and noticing tenants as required.
• Posting notices to tenants as needed.
• Responding to and processing tenant work order requests for repairs and maintenance.
• Submitting HHAV and third-party invoices to City for processing in a timely manner as stated in the Agreement.
• Attending meetings with City staff and City-hosted below market rate (BMR) Guidelines training and quarterly property manager meetings. • Annual unit inspections in coordination with City Building Division. • Common area management, including maintenance and repairs and contracts with third parties for landscaping, pest control, backflow testing, fire alarm testing, parking management, and other work needed for building operations. • Move-outs, including inspections and management of refund of security deposit deductions for repairs due to damages; and refund of security deposit to Tenant per California Civil Code Section 1950.5.
• File management.

In addition, CONSULTANT shall provide twice weekly (approximately eight hours per week) of janitorial services by a member of the maintenance team. Janitorial services shall include cleaning of interior and exterior common areas and periodic carpet cleaning.

5. Project Management
CONSULTANT will provide project management services for any major repairs or construction/rehabilitation projects to the property’s exterior buildings, grounds, or interiors that total $10,000 or more, including items under warranty. Services for each project include:
a. Determining scope of work in accordance with city requirements b. Bidding the projects to appropriate vendors pursuant to city requirements c. Managing project team and vendors
d. Managing invoices and coordinating payments
e. Coordination with the City regarding inspections and completion of work

6.3 Attachment 3 - Contract Amendment No 1. for Workforce Housing

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4 •Providing files or other documents to the City for annual audits or review upon request.
•Submit annual maximum rent, income limits, and utility allowance calculations to the City each year within thirty (30) days of issuance of income limits by HCD and the annual Utility Allowance Schedule by the County of San Mateo. •Submit invoices and receipts for work performed or supplies or equipment purchased within sixty (60) days of the date of service for services provided July 1 through May 31 of each year and by July 15 for all services performed June 1 to June 30 of each year. All invoices must clearly indicate the date of service and receipts must be attached. Invoices shall be submitted electronically to the City’s email address for invoices set up for this project or another method as determined by the City.

7. Other Duties
Other duties from time to time as required and/or mutually agreed to in order to effectively manage the property in compliance with regulatory requirements, new legislation, and/or local policies and best practices.

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4 EXHIBIT B-1
CONSULTANT’S FEE SCHEDULE

WORKFORCE HOUSING PROPERTY MANAGEMENT SERVICES
Updated November 18, 2024
This Exhibit B-1 replaces Exhibit B of the Agreement between HIP Housing Affordable Ventures and the City of Foster City for the Workforce Housing Property located at 501 Pilgrim Drive, Foster City, CA, dated December 13, 2021.The fees for CONSULTANT are as follows:

Monthly Fees
Fee Methodology/Rate Monthly Fees
Management and
Accounting
$90 per door for 21 units
(on-site manager unit is exempt)
$1,890
Onsite property
management
15 hours per week $1,668.80
Onsite Janitorial
Services
8 hours per week $901.25
Total $4,460.05
Additional Fees
Fee/Cost Rate
Move-in $500 per move-in.

Repairs, maintenance,
turnovers billed to City from
HIP Housing
•$75 per hour for general maintenance and repairs.
•$100 per hour for cabinetry, countertops, and
minor construction.
•$125 per hour for plumbing and electrical.
•Supplies and equipment billed with no markup.

Project Management 10% of total project cost for projects of $10,000 or more
CONSULTANT shall submit an annual rate sheet by March 1 of each year if fees or billing rates change.

The above amounts exclude any third-party payments to vendors for building operations, including, but not limited to utilities, landscape maintenance, pest control, fire alarm testing, backflow assembly testing, equipment, supplies, maintenance services, or repairs.

Liability account
In addition to expenses listed above, security deposits may be refunded via HIP Housing Affordable Ventures. The refund of security deposits to tenants is not classified as an expense.

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4 Contract Maximum
The total amount of compensation to be paid under this contract shall not exceed the sum of $97,000 per fiscal year.

6.3 Attachment 3 - Contract Amendment No 1. for Workforce Housing

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4 Exhibit D

LEASING GUIDELINES

WORKFORCE HOUSING PROPERTY MANAGEMENT SERVICES
Added November 18, 2024

1. Preferences.

The Preference priorities shall be as per Minute Order 1543 dated May 7, 2018, and amended on March 7, 2022. Below Market Rate (BMR) Units There are fourteen (14) BMR units and eight (8) Workforce Units.

The preferences for Workforce Units are as follows per Minute Order 1543 dated May 7, 2018, and amended March 7, 2022, by Resolution 2022-42.

1. Those with mobility-related disabilities. *

2. Persons who work for the Foster City Police Department, City of Foster City Fire Department (now SMC Fire) or are otherwise considered by the City of Foster City to be a first responder to emergencies.

3. Other income qualified employees of the City of Foster City.

4. Income qualified classroom teachers employed by San Mateo-Foster City School District, San Mateo Union High School District, or the San Mateo Community College District.

5. Income qualified persons who live and work in Foster City.

6. Income qualified persons who live in Foster City.

7. Income qualified persons who work in Foster City.

8. All others who are income qualified.
*two accessible-ADA units (one one-bedroom unit and one two-bedroom unit) are designed for persons with mobility-related disabilities. The preference category 1 applies only to these two units.

The preferences for BMR units per Minute Order 1543 dated May 7, 2018, are as follows:

1. Income qualified employees of the City of Foster City.

2. Income qualified classroom teachers employed by San Mateo-Foster City School District, San Mateo Union High School District, or the San Mateo Community College District.

3. Income qualified persons who live and work in Foster City.

4. Income qualified persons who live in Foster City.

5. Income qualified persons who work in Foster City.

6. All others who are income qualified.

2. Household Size. The program is designed for larger households.

Occupancy Standards Occupancy standards as stated in the Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants, dated June 17, 2020:
•One-bedroom units: minimum one person and maximum two people.

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4 •One-bedroom plus den units: minimum one person and maximum three people.
•Two-bedroom units: minimum three people and maximum four people.

3. Affordable Rent. Tenants will pay "affordable rent" as stated in the Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants, dated June 17, 2020. Rents may be lower than maximum chargeable rent and shall be set by Owner. Rent increases shall be determined by Owner in accordance with Federal, State, and Local laws and regulations.

4. Verification of Income and Household Size. Agent shall verify the household size and income of each tenant and shall certify both annually. Upon renewal of each lease, but in any event no less frequently than once a year. Recertification shall be in accordance with the City’s BMR Procedures and Guidelines. If the household size or income level changes so tenant no longer qualifies for the occupancy of the Property, the lease may not be renewed.

5. Lease Terms. Initial lease terms shall be for 12 months. Renewals may be month-to- month.

6. Security Deposit. A security deposit in the amount of one month’s rent shall be obtained.

7. Notice of Vacant Units. Notice shall be sent to the Owner as soon as Agent knows a tenant will be vacating the Property.

8. Standard Lease Form. The standard lease form shall contain a detailed description of the types of activity which will be cause for immediate eviction (e.g., criminal activity, nonpayment of rent) or warnings (e.g., failure to maintain the Property, causing a nuisance in the neighborhood). Agent shall develop a standard procedure for notifying tenants of defaults under the lease. Leases shall be consistent with the City’s BMR Procedures and Guidelines and include all legally required attachments and addenda. Owner shall have the right to approve the Lease Form.

9. Consultant shall provide the City with a copy of the lease and any subsequent notices within 14 days of execution.

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5 CITY OF FOSTER CITY
CONTRACT AMENDMENT NO. TWO (2)

PROFESSIONAL SERVICES AGREEMENT

FOR PROPERTY MANAGEMENT AND LEASING

FOR EXISTING UNIT PURCHASE PROGRAM
DATE: November 18, 2024
ACCOUNT NUMBERS: 122-0832-463-42-81, 122-0832-463-42-84, AND 122-0832-463-42-8187

PROJECT NAME EXISTING UNIT PURCHASE PROGRAM HOMES
TO: HIP HOUSING AFFORDABLE VENTURES

CHANGE REQUESTED BY CITY OF FOSTER CITY AND HIP HOUSING AFFORDABLE VENTURES, INC.

Based on mutual agreement, HIP Housing Affordable Ventures, Inc. and the City of Foster City agree to amend the original Agreement dated February 24, 2021 (“Agreement”) and Amendment No. 1, dated March 18, 2024, which are identified as follows:

ORIGINAL AGREEMENT AMOUNT: $45,000.00
AMENDMENT NO. 1 AMOUNT $122,660.00
AMOUNT EXPENDED TO DATE: $14,743.99

REVISED AMOUNT OF AGREEMENT WITH
AMENDMENT NO. 1 FOR EMERGENCY REPAIRS $167,660.00
AMOUNT OF AMENDMENT NO. TWO (2): ($109,600.00)
REVISED TOTAL AMOUNT OF AGREEMENT: $58,000 per fiscal year

The decreased maximum is needed due to the near completion of the emergency repair work for 833 and 835 Comet Drive for which Amendment No. 1 was approved and the original Agreement amount of $45,000 is not sufficient for the revised scope of work. The maximum amount of funds allocated to be paid to HIP Housing Affordable Ventures per fiscal year is $58,000.

The parties agree that the Agreement shall be amended as set forth herein.

6.3 Attachment 4 - Contract Amendment No. 2 for EUPP Units

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5 AMENDMENT
The parties agree that the Agreement shall be amended as set forth herein.

1. Section C.1, Services in the Agreement shall be amended to change all references from Exhibit A-1 to Exhibit A-2.

2. Section C.2(a), Term; Termination in the Agreement shall be replaced in its entirety to read as follows:
“(a) The term of this Agreement shall commence upon the date hereinabove written and shall terminate two years from the date of this Agreement, unless the term is extended by either party for an additional two years. Either party may exercise this option to extend the term by providing the other party with 90 days’ notice. If the other party does not agree to the renewal, then the term shall expire at the end of the term. ”
All other subsections of Section C.2 of the Agreement shall remain unchanged.

3. Section C.3. Compensation; Expenses; Payment of the Agreement shall be replaced in its entirety to read as follows:

“CITY shall compensate CONTRACTOR for all services performed by CONTRACTOR hereunder in an amount based upon CONTRACTOR’s hourly rates during the time of the performance of said services. A copy of CONTRACTOR’s hourly rates for which services hereunder shall be performed are set forth in CONTRACTOR’s fee schedule marked Exhibit “B-2” hereof, attached hereto and by this reference incorporated herein.

Notwithstanding the foregoing, the combined total compensation and reimbursement of costs payable hereunder shall not exceed the sum FIFTY-EIGHT THOUSAND DOLLARS ($58,000) per fiscal year. Invoices for amounts in excess fifty-eight thousand dollars ($58,000) shall not be paid unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services or incurring such costs and expenses by the City Manager (for contracts less than $50,000) or City Council (for contracts $50,000 or more) evidenced by motion duly made and carried and a written contract amendment having been executed.

Invoices shall be remitted electronically for payment monthly for monthly fees and within sixty (60) days of service work performed and by July 15th of each year for work performed in June of any given fiscal year. Invoices must clearly indicate the date of service and receipts for purchased supplies and equipment must be attached.”

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5 4. Section C.15. Notice in the Agreement shall be replaced in its entirety to read as follows:

15. Notice. All notices required by this Agreement shall be given to the CITY and CONTRACTOR in writing, by first class mail, postage prepaid, addressed as follows:

CITY: City of Foster City
610 Foster City Boulevard
Foster City, CA 94404-2299
Attention: Sofia Mangalam, Community Development Director [email protected]
CONTRACTOR: HIP Housing Affordable Ventures
1512 Stafford Street
Redwood City, CA 94063
Attention: Thatiane Avila, Director of Property Management [email protected]

5. Section 22 of the Agreement is revised to read in its entirety as follows:
“This Agreement, including Exhibits A-2, B-2, C, E, and F-1, comprise the entire Agreement.”

6. Exhibit A of the Agreement shall be replaced in its entirety with Exhibit A-2, attached hereto and hereinafter incorporated by reference.

7. Exhibit B-1 of Amendment No. One (1) shall be replaced in its entirety with Exhibit B-2 attached hereto and hereinafter incorporated by reference.

8. Exhibits C and E remain unchanged. There is no Exhibit D in the Agreement.

9. Exhibit F of the Agreement shall be replaced in its entirety with Exhibit F-1, attached hereto and hereinafter incorporated by reference.

10.Except as specifically modified herein, all other terms and provisions in the Agreement shall remain unchanged.
[Signatures on Next Page]

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5 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. Two (2) to be executed on the date first above written by their respective officers duly authorized in that behalf.

CITY OF FOSTER CITY:

Dated: _________________________________ Patrick Sullivan, Mayor
ATTEST:

Dated: ________________________________ Priscilla Schaus, City Clerk
APPROVED AS TO FORM:

Dated:

Benjamin Stock, City Attorney

HIP HOUSING AFFORDABLE VENTURES
INC:

Dated:

Kate Comfort Harr, Executive Director
Attachments:

Exhibit A-2: Revised Scope of Work
Exhibit B-2: Revised Fee Schedule
Exhibit F-1: Revised Leasing Guidelines

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5 EXHIBIT A-2

SCOPE OF WORK AND SCHEDULE
FOR

EXISTING UNIT PURCHASE PROGRAM
Revised November 18, 2024
This Exhibit A-2 replaces Exhibit A-1 and the original Exhibit A of the Agreement between HIP Housing Affordable Ventures and the City of Foster City for the Existing Unit Purchase Properties listed in Exhibit E.

HIP Housing Affordable Ventures, Inc. (HHAV) will provide property management and initial and annual income and occupancy certification compliance services for the units.

1. Services to be Performed by Agent. Agent shall lease, operate, maintain, manage and repair the Properties. Attached as Exhibit E is a list of the Properties as of the date of this Agreement. Perform all usual and customary management functions to facilitate the efficient operation of the Properties for the purposes described in this Agreement. Agent shall perform these duties with due diligence. Without limiting the generality of the foregoing, Agent shall do all of the following:

A. Leasing. Agent shall advertise in the Foster City Islander and/or other media as determined in consultation with Owner when a vacancy occurs, manage a waitlist, select qualified tenants and lease the Properties in accordance with the Leasing Guidelines attached hereto as Exhibit F. The Leasing Guidelines may be changed from time to time by mutual agreement. Agent shall develop the forms of lease application and lease agreement to be used for the Properties, which forms shall be subject to the prior approval of Owner. Agent shall enter into the leases as agent on behalf of Owner. A copy of the lease application and fully-executed lease, along with the certification of income verification and household size on a Tenant Income Certification (TIC) form provided by Agent shall be sent to Owner within 15 days after execution of the lease. Agent shall maintain individual tenant files containing a copy of the lease, verification of income form, notices and all correspondence with the tenant. All tenant files shall be maintained a minimum of 5 years after the tenant has vacated the Property.

B. Collection of Rent. Agent shall ensure that all rents and any other moneys payable under the leases are paid by the tenants of the Properties in a timely manner. Agent shall require that rents and any other moneys payable under the leases are paid directly to the Owner. On the 6th day of each month Owner shall notify Agent and Agent's designated Property Management Company when rent has not been received. Notification may be by email, letter or fax as determined by the owner.

C. Enforcement of Leases. Agent shall secure full compliance by each tenant with the terms of its lease. Upon default by a tenant, Agent shall pursue legal remedies in accordance with applicable California law for recovery of the leased premises. For this purpose, Agent is authorized to sign and serve in the name of the Owner such notices as are appropriate, to institute and prosecute actions to evict tenants and to recover possession of the Property in the name of the Owner, to recover rents and other sums due and when expedient to settle, compromise and release such actions or suits or reinstate such tenancies. Agent shall keep Owner informed of such warnings and/or actions and shall follow any instructions of Owner as Owner may reasonably

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5 prescribe for the conduct of any such action. Agent may not pursue monetary damages against a tenant without the prior written consent of Owner.

E. Taxes and Assessments. Taxes and assessments shall be paid directly by Owner and not by Agent. Agent shall promptly deliver to Owner notices relating to taxes and assessments received by Agent.

F. Employees. Agent shall hire, discharge and supervise all employees required for the operation and maintenance of the Properties. All employees performing work (other than the City employees specifically designated by Owner to perform inspection and repair work) shall be employees of Agent and not Owner. Agent shall comply with all applicable laws and regulations concerning worker's compensation, social security, unemployment insurance, hours of labor, wages, working conditions and all other rules and regulations governing employees.

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5 Owner and Agent shall meet in good faith to resolve their differences. Once the budget is agreed upon, Agent shall perform its services in accordance with the budget. If additional properties are added, Agent shall modify the budget accordingly

2. Accounts.

4. Reports.

A. Monthly. At the end of the first month of a tenancy, Agent shall perform a site visit and inspection. Following the inspection, Agent shall send a written report of the inspection to the Owner.

B. Annually. On March 1 of each calendar year, Agent shall provide Owner with the following reports:
(i) A certification of the income of each current resident as of the date of the last income certification, the current rent charged each resident and the amount of any utilities included in the rent. Owner may specify the format for this report. (ii) An inspection report, including a list of any material physical defects in the Properties, including a description of any major repair or maintenance work to be performed in the following year.
(iii) A statement regarding the general management of the Properties, including information about tenant relations, communications from tenants, the physical condition of the Properties and any other information deemed relevant by Agent or requested by Owner.
(iv) A list of the expiration dates of each lease.

5. Fidelity Bond. Agent will furnish, at Agent's expense, a fidelity bond in the amount of $20,000, to protect the Owner against misapplication of funds from the Properties by Agent and its employees.

A Summary of Services is as follows:

6.3 Attachment 4 - Contract Amendment No. 2 for EUPP Units

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5 2. Initial Lease-up and Filling of Vacancies
•Marketing the property pursuant to criteria and protocols established by the City and as stated in the City’s BMR Rental Housing Program Procedures and Guidelines.
•Showings of units to prospective applicants.
•Managing lottery process and developing and managing a waitlist, except that the City of Foster City may manage the waitlist for city employees, including first responders, if applicable, and if mutually agreed to by both parties. •Processing applications, collection of applications fees, and conducting credit and background checks.
•New move-in certifications and notifications to the city of tenant status. •Collection of deposit and initial rent.
•Initial tenant income certifications.
•Lease preparation and execution.
•File management.
•Filling vacancies within a sixty (60) day period to the extent feasible.

4. Property Management
Duties shall be managed by CONSULTANT’S Director of Property Management and shall include:
• Lease management and enforcement.
• Managing reasonable accommodation requests.
• Tenant relations.
• Compliance with the City’s BMR Rental Housing Procedures and Guidelines as they pertain to property management.
• Monitoring rent and utility payments, if applicable.
• Rent payment notices as needed.
• Management of third-party utility billing vendor, if applicable, and noticing tenants as required.
• Posting notices to tenants as needed.
• Responding to and processing tenant work order requests for repairs and maintenance.
• Submitting HHAV and third-party invoices to City for processing in a timely manner as stated in the Agreement.
• Attending meetings with City staff and City-hosted below market rate (BMR) Guidelines training and quarterly property manager meetings. • Annual unit inspections in coordination with City Building Division.

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5 • Common area management, including maintenance and repairs and contracts with third parties for landscaping, pest control, backflow testing, fire alarm testing, parking management, and other work needed for building operations. • Move-outs, including inspections and management of refund of security deposit deductions for repairs due to damages; and refund of security deposit to Tenant per California Civil Code Section 1950.5.
• File management.

6. Administration
CONSULTANT shall conduct the following tasks.
•Provide an annual rate sheet for services to CITY for the next fiscal year (July 1 to June 30) no later than March 1 of each year.
•Provide an estimated budget of operating expenses for the next fiscal year to CITY by March 1 of each year.
•Submit annual inspection reports by March 1 of each year using a method as specified in the City’s BMR Guidelines.
•Submit annual report by January 31 of each year.
•Attend meetings with the City as needed.
•Attend Below Market Rate property training sessions hosted by the City for BMR property managers.
•Providing files or other documents to the City for annual audits or review upon request.
•Submit annual maximum rent, income limits, and utility allowance calculations to the City each year within thirty (30) days of issuance of income limits by HCD and the annual Utility Allowance Schedule by the County of San Mateo. •Submit invoices and receipts for work performed or supplies or equipment purchased within sixty (60) days of the date of service for services provided July 1 through May 31 of each year and by July 15 for all services performed June 1 to June 30 of each year. All invoices must clearly indicate the date of service and receipts must be attached. Invoices shall be submitted electronically to the City’s email address for invoices set up for this project or another method as determined by the City.

7. Other Duties

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5 Other duties from time to time as required and/or mutually agreed to in order to effectively manage the property in compliance with regulatory requirements, new legislation, and/or local policies and best practices.

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5 EXHIBIT B-2
CONSULTANT’S FEE SCHEDULE
FOR

PROPERTY MANAGEMENT FOR

EXISTING UNIT PURCHASE PROGRAM
Revised November 18, 2024
Agent's Fees. As compensation for Agent's services hereunder, Owner shall pay to Agent the Monthly fees for CONSULTANT as follows:

Management Fee Methodology Monthly Rate
Management and Accounting $230 per unit per
month
$1,380
Weekly janitorial service N/A $0
Weekly onsite property management N/A $0
Total $1,380
Additional Fees
Fee/Cost Rate/Notes
Move-in $1,000 per move-in.

Project Management 10% of total project cost for projects of $10,000 or more
CONSULTANT shall submit an annual rate sheet by March 1 of each year if fees or billing rates change.

For services which are not enumerated in this Agreement, Agent and Owner shall mutually agree upon any additional fee to be paid to Agent. Services which are not included in this Agreement include management and supervision services relating to fire restoration or major rehabilitation.

Contract Maximum

6.3 Attachment 4 - Contract Amendment No. 2 for EUPP Units

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5 The total amount of compensation to be paid under this contract shall not exceed the sum of $58,000 per fiscal year.

6.3 Attachment 4 - Contract Amendment No. 2 for EUPP Units

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5 Exhibit F-1

LEASE GUIDELINES
Updated November 18, 2024

1. Preferences.

The Preference priorities named below replace Community Development Department Minute Order No. 18 and Resolution No. 2020-24 with Resolution No.2023-3.

1. A non-profit supportive housing provider that will operate the unit for persons requiring supportive housing (as defined by FCMC Section 17.04.544).

2. Very low income tenants (as defined in California Health and Safety Code Section 50105) living and working in Foster City.

3. Low income tenants (as defined in California Health and Safety Code Section 50079.5) living and working in Foster City.

4. Very low income tenants (as defined in California Health and Safety Code Section 50105) living in Foster City.

5. Low income tenants (as defined in California Health and Safety Code Section 50079.5) living in Foster City.

6. Very low income tenants (as defined in California Health and Safety Code Section 50105) who are employees of the City of Foster City.

7. Low income tenants (as defined in California Health and Safety Code Section 50079.5) who are employees of the City of Foster City.

8. Very low income tenants (as defined in California Health and Safety Code Section 50105) who are classroom teachers employed by the San Mateo- Foster City School District, the San Mateo Union High School District or the San Mateo County Community College District.

9. Low income tenants (as defined in California Health and Safety Code Section 50079.5) who are classroom teachers employed by the San Mateo-Foster City School District, the San Mateo Union High School District or the San Mateo County Community College District.

10.Very low income tenants (as defined in California Health and Safety Code Section 50105) who work in Foster City.

11.Low income tenants (as defined in California Health and Safety Code Section 50079.5) who work in Foster City.

12.Very low income tenants (as defined by California Health and Safety Code Section 50105) – all others who are income qualified.

13.Low income tenants (as defined by California Health and Safety Code Section 50079.5) – all others who are income qualified
The Owner will issue a Request for Proposals and/or select a qualified proposal for Preference 1, if applicable.

2. Household Size. The program is designed for larger households. Minimum household size for two-bedroom units shall be three (3) people. Minimum household size for three-bedroom units shall be five (5) people. Minimum household size for

6.3 Attachment 4 - Contract Amendment No. 2 for EUPP Units

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5 five-bedroom units shall be six (6) people. Tenants not meeting this requirement must be approved by Owner.

3. Affordable Rent. Tenants will pay "affordable rent" as such term is defined in California Health and Safety Code Section 50053. Rents may be lower than maximum chargeable rent and shall be set by Owner. Rent increases shall be determined by Owner in accordance with Federal, State, and Local laws and regulations.

4. Verification of Income and Household Size. Agent shall verify the household size and income of each tenant and shall certify both annually. Upon renewal of each lease, but in any event no less frequently than once a year, Agent shall reverify household size and the income of each tenant and adjust the rental amount if necessary. Recertification shall be in accordance with the City’s BMR Procedures and Guidelines. If the household size or income level changes so tenant no longer qualifies for the occupancy of the Property, the lease may not be renewed.

5. Lease Terms. Initial lease terms shall be for 12 months. Renewals may be month-to- month.

6. Security Deposit. A security deposit in the amount of one month’s rent shall be obtained.

7. Notice of Vacant Units. Notice shall be sent to the Owner as soon as Agent knows a tenant will be vacating the Property.

9. Consultant shall provide the City with a copy of the lease and any subsequent notices within 14 days of execution.

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PROFESSIONAL SERVICES AGREEMENT
FOR

PROPERTY MANAGEMENT SERVICES BY HIP HOUSING AFFORDABLE VENTURES

This Agreement is made and entered into as of th e 13th day of December, 20 21 by and between the City of Foster City hereinafter called "CITY" and HIP Housing Affordable Ventures hereinafter called "CONTRACTOR".

RECITALS

This Agreement is entered into with reference to the following facts and circumstances:

A. That CITY desires to engage CONTRACTOR to provide professional services in the CITY;

B. That CONTRACTOR is qualified to provide such services to the CITY; and

C. That the CITY has elected to engage the services of CONTRACTOR upon the terms and conditions as hereinafter set forth.

1. Services. The services to be p erformed by CONTRACTOR under this Agreement shall inc lude those services set forth in Exhibit A, which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Performance of the work specified in said Ex hibit A is hereby made an obligation of CONTRACTOR under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

Where in conflict, the terms of this Agreement supersede and prevai l over any terms set forth in Exhibit A.

2. Term; Termination . (a) The term of this Agreement shall commence upon the date hereinabove written and shall continue until terminated by either party as provided below. (b) Notwithstanding the provisions of (a) above, either party may terminate this Agreement without cause by giving written notice not less than thirty (30) days prior to the effective date of termination, which date shall be included in said notice. In the event of such termination, CITY shall compensate CONTRACTOR for services rendered, and reimburse CONTRACTOR for costs and expenses incurred, to the date of termination, calculated in accordance with the provisions of paragraph 3. In ascertaining the services act ually rendered to the date of termination, consideration shall be given both to completed work and work in process of completion. Nothing herein contained shall be deemed a limitation upon the right of CITY to terminate this Agreement for cause, or otherwise to exercise such rights or pursue such remedies as may accrue to CITY hereunder.

3. Compensation; Expenses; Payment. CITY shall compensate CONTRACTOR for all services performed by CONTRACTOR hereunder in an amount bas ed upon CONTRACTOR’s hourly rates during t he time of the performance of said services. A copy of CONTRACTOR’s hourly rates for which services hereunder shall be performed are set forth in CONTRACTOR’s fee schedule marked Exhibit “B” hereof, attached hereto and by this reference incorporated herein.

DocuSign Envelope ID: 1A7E0661-5688-4209-BCD1-0FACB545ABD1

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Notwithstanding the foregoing, the combined total of compensation and reimbursement of costs payable hereunder shall not exceed the sum of Twenty- Three Thousand Seven Hundred Sixty Dollars ($23,760) per year plu s $100 per unit Initial set-up fee and $500 per unit lease -up fee (charged each time a tenant moves into a unit). Invoices for amounts in excess of these amounts shall not be paid unless the performance of services and/or reimbursement of costs and expenses i n excess of said amounts have been approved in advance of performing such services or incurring such costs and exp enses by the City Manager (for contracts l ess than $50,000) or City Council (for contracts $50,000 or more) evidenced by motion duly made and carried and a written contract amendment having been executed.

Compensation and reimbursement of costs and expens es hereunder shall be payable upon monthly billing therefor b y CONTRACTOR to CITY, which billing shall include an itemized statement, briefly describing by task and labor category or cost/expense items billed.

4. Additional Services . In the event CITY desires the performance of additional services not otherwise inc luded within the services described in Exhibit A, such services shall be auth orized in advance of the performance thereof by the City Manager (for contracts less than $ 50,000) or City Council (for contracts $50,000 or more) by motion dul y made and carried. Such amendment to this Agreement shall include a description of the services to be performed thereunder, the maximum compensation a nd reimbursement of costs and expenses payable therefor, the ti me of performance thereof, and such other matters as the part ies deem appropriate for the accomplishment of such services. Except to the e xtent modified by written amendment, all other terms an d conditions of this Agreement shall be deemed incorporated in each such amendment.

5. Records. CONTRACTOR shall keep and m aintain accurate records of all time expended and costs and expenses incurred relating to services to be performed by CONTRACTOR hereunder. Said records shall be available to CITY for review and copying during regular business hours at CONTRACTOR’s place o f business or as otherwise agreed upon by the parties.

6. Authorization. Th is A greement becomes effective when endorsed by both parties in the space provided below.

7. Reliance on Professional Skill of CONTRACTOR. CONTRACTOR represents that it has the necessary professional skills to perform the services required and the CITY shall rely on such skills of the CONTRACTOR to do and pe rform the work. In performing services hereunder CONTRACTOR shall adhere to the standards generally preva iling for the perfo rmance of expert consulting services similar to those to be performed by CONTRACTOR hereunder.

8. Documents. All documents, plans, drawings, renderings, and other papers, or copies thereof, as f inally rendered, prepared by CONTRACTOR pursuant to the terms of this Agreement, shall, upon preparation and delivery to CITY, become the property of CITY.

9. Relationship of Parties. It is u nderstood that the relationship of CONTRACTOR to the CITY is that of an independent contractor and all pe rsons working for o r under the direction of CONTRACTOR are its agents or employees and not agents or employees of the CITY.

DocuSign Envelope ID: 1A7E0661-5688-4209-BCD1-0FACB545ABD1

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10. Schedule. CONTRACTOR shall adhere to the schedule set forth in Exhibit A; provided, t hat CITY shall grant reasonable extensions of time for the performance of such services occasioned by governmental reviews of CONTRACTOR’s work product or other unavoidable delays; provided, fu rther, that such unavoidable delay shall not include strikes, l ockouts, work stoppages, or other labor di sturbances conducte d by, or on behalf of, CONTRACTOR’s officers or employees.

CONTRACTOR acknowledges the importance to CITY of CITY’s Project schedule and agrees to put forth its best professional efforts to perf orm its services under this Agreement in a manner consistent with that schedule.

11. Indemnity.

a) To the extent permitted by law, Contractor agrees to defend, indemnify and save harmless City and Estero Municipal Improvement District, and their respective councils, boards, commissions, officers, employees, or agents from and against all claims, investigations, and suits in connection with (i) the Project, provided that such claims, investigations and suits are attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property, and such claims and suits arise, or are alleged to arise, in whole or in part out of any negligent act or omission of Contractor, its officers, employees, subcontractors, or agents, (ii) any alleged or actual violation of state or federal labor, discrimination or other laws pertaining to Contractor’s employees, it being expressly agreed and understood that as between City and Contractor, all persons employed in connection with the Project are employees of Contractor, not City; or (iii) Contractor's breach of this Agreement or its misconduct.

(b) To the extent permitted by law, City agrees to defend, indemnify, and save harmless Contractor, its officers, employees, or agents from and against all claims, investigations and suits in connection with the Project, provided that such claims, investigations and suits are attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property, and such claims and suits arise, or are alleged to arise, in whole or in part out of any negligent act or omission of City, its officers, employees, or agents. City agrees to include Contractor as an additional insured in City's public liability policy with respect to the Project, but only while Contractor is acting as property manager for City under this Agreement.

(d) The defense and indemnification obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained within this Agreement.

12. Insurance. CONTRACTOR shall acquire and maintain Workers’ Compensation, employer’s liability, commercial general liability, owned and non-owned and hired automobile liability, and professional liability insurance co verage relating to CONTRACTOR’s services to be p erformed hereunder covering CITY’s risks in form subject to the approval of the City Attorney and/or CITY’s Risk Manager.

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The minimum amounts of covera ge corresponding to the aforesaid categories of insurance per insurable event, shall be as follows:

Insurance Category Minimum Limits

Workers’ Compensation statutory minimum

Employer’s Liability $1,000,000 per accident for bodily injury or disease

Commercial General Liability $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury, personal injury
and property damage

Automobile Liability $1,000,000 per accident for bodily injury and property damage (coverage required to
the extent applic able to CONTRACTOR’s
vehicle usage in performing services
hereunder)

1Professional Liability $1,000,000 per claim and aggregate

It shall be a requirement under this Agreement that any available insura nce proceeds broader than or in excess of the specifie d minimum insurance coverage requirements and/or limits s hall be available to the CITY as an Additional Insured. Furthermo re, the requirements for coverage and limits shall be the greater of either (1) the minimum coverage and limits specified in this Agreement or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named Insured.

CONTRACTOR agrees to include with all subcontractors in their subc ontracts the same requirements and provisions of this agreement including the indemnity and insurance requireme nts t o the extent they apply to the scope of the subcontractor’s work. Subcontractors hired by CONTRACTOR shall agree to be bound to CONTRACTOR and CITY in the same manner and to the same extent as CONTRACTOR is bound to CITY under this Agreement and its accompanying documents. Subcontractors shall further agree to include these same provisions with any sub -subcontractors. A copy of the indemnit y and insurance provisions of this Agreement will be f urnished to the Subcontractor upon request.

CONTRACTOR shall require all subcontractors to provide a val id certificate of insurance and the required endorsements included in the subcontract agreement and will provide proof of compliance to the CITY prior to commencement of any work by the subcontractor.

Concurrently with the execution of this Agreement, CONTRACTOR shall furnish CITY, on the form included as Exhibit D or similar form, with certificates and copies of information or declaration pages of the insurance required hereunder to be included as Exhibit C hereto. With respect to evidence of commercial general

1 Note: Professional liability insurance coverage is not required if the CONSU LTANT is not provi ding a service regulated by the state. (Examples of service providers re gulated by the state are insurance agents, professional engineers, doctors, certif ied public ac countants, lawye rs, etc.) P lease check and initial the following if p rofessional liability is NOT required for this agreement.  Recommended ______ [Project Manager]  Approved _______[Risk Manager]
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liability and automobile liability insurance coverage, CONTRACTOR must also include in Exhibit C the following original endorsements:

(a) Precluding cancellation or reduction in per occurrence limits before the expiration of thirty (30) days (10 d ays for nonpayment ) after CITY shall have received written notification of cancellation in covera ge or reduction in per occurrence limits by first class mail;

(b) Naming the City of Foster City and Estero Municipal Improvement District, its Council, offic ers, boards, commi ssions, employees, and agents, as additional insureds; and

(c) Providing that CONTRACTOR’s insurance coverage shall be primary insurance with respect to City of Foster City and Estero Muni cipal Improvement District, its Council, officer s, boards, commiss ions, employees, and agents, and any insurance or self -insurance maintained by CITY for itself, its Council, officers, boards, commis sions, employees, or agents shall be in excess of CONTRACTOR’s insurance and not contributory with it. CONTRACTOR and its insurer may not seek contribution from CITY’s insurance or self-insurance.

The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or ex cess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a pr imary and non-contributory basis for the benefit of CITY, to the extent required by this Agreement, before the CITY’s insurance or self-insurance may be called upon to protect CITY as a named Insured.

All self-insured retentions (SIR) must be disclosed to CITY for approval and shall not reduce the limits of liability coverage. Policies containing and SIR provisio n shall provide or be endorsed to provide that t he SIR may be sati sfied by either the named CONTRACTOR/Named Insured or CITY.

CITY reserves the right to obtain a full certified copy of any insuran ce policy and endorsements. Failure to exercise this rig ht shall not constitute a waiver of right to exercise later.

Any and all Subcontractors shall agree to be bound to CONTRACTOR and CITY in the same manner and to the same extent as CONTRACTOR is bound to CITY under this Agreement. Subcontractors shall fur ther agree to include the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, in any agreemen t with sub-subcontractors to the extent that they appl y to the scope of the sub -subcontractor’s work. A copy o f the indemnity and insurance provisions of this Agreement shall b e furnished to any subcontractor upon request.

CONTRACTOR shall maintain insur ance as required by this Agreement to the fullest amount allowed by law and shall maintain in surance for a minimum of five (5) years following completion of th is project or serv ice. In the event CONTRACTOR fails to obtain or maintain completed operations coverage as required by this Agreement, the CITY at it s sole discretion may purchase the coverage required and the cost will be paid by CONTRACTOR.

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13. WORKERS' COMPENSATION. CONTRACTOR certifies that it is aware of the provisions of the Labor Code of th e S tate of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and CONTRACTOR certifies that it will comply with such provisions be fore commencing the performance of the work of this agreement.

14. NON-DISCRIMINATION. The CONTRACTOR will not discriminate against any employee or applicant for employment be cause of race, color, religion, sex or national origin. The CONTRACTOR will ta ke affirmative action to ensure that applicants are em ployed and the employees are treated during employment without regard to their race, color, religion, sex or national origi n. Such action shall include, but not be limited to the following: employment , a dvancement, demotion, transfer, recruitment, or rec ruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection f or training, including apprenticeship. The CONTRACTOR shall at all times be in compliance with t he requirements of the Federal Americans With Disabili ties Act (Public Law 101 - 336) which prohibits discriminat ion o n the basis of disability by public entitie s.

The CONTRACTOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.

15. Notice. All notices required by this Agreeme nt shall be given to the CITY and CONTRACTOR in writing, by first class mail, postage prepaid, ad dressed as follows:

CITY: City of Foster City
610 Foster City Boulevard
Foster City, CA 94404-2299
Attention: Marlene Subhashini, Community
Development Director
[email protected]

CONTRACTOR: Steven McDonald, Vice President
HIP Housing Affordable Ventures
1512 Stafford Street, Redwood City, CA 94063
[email protected]

16. Non-Assignment. This Agreement is not assignable either in whole or in part.

17. Amendments. This Agreement may be amended or modif ied only by written agreement signed by both parties.

18. Validity. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

19. Governing Law. This Agreement shall be governed by the laws of the State of California and any suit or action initiated by either party sha ll be brought in the County of San Mateo, California. In the event of litigati on between the parties hereto to enforce any provision of the Agreement, the unsuccessful party will pay the reasonable attorney’s fees and expenses of litigation of the successful party.

20. Mediation. Should any dispute arise out of this Agreement, the parties shall meet in mediation and attempt to reach a resolution w ith the assistance of a mutually DocuSign Envelope ID: 1A7E0661-5688-4209-BCD1-0FACB545ABD1

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acceptable mediator. Neither party shall be permitted to file legal action without first meeting in mediation and mak ing a good faith attempt to reach a m ediated resolution. The costs of the mediator, if any, shall be pai d equally by the parties.

If a mediated se ttlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and each party shall bear its own legal costs.

21. Conflict of Inter est. CONTRACTOR may serve other clients, but none who are active within the City of Foster City or who conduct business that would place CONTRACTOR in a "conflict of interest" as that term is defined in State law.

22. Entire Agreement. This Agreement, i ncluding Exhibits A, B C, and D, comprises the entire Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

CITY OF FOSTER CITY

Dated: _________________________________ Richa Awasthi, Mayor

ATTEST:

Dated: ________________________________ Priscilla Schaus, City Clerk

APPROVED AS TO FORM

Dated:

Benjamin Stock, City Attorney

HIP HOUSING AFFORDABLE VENTURES

Dated:

Steven McDonald, Vice President

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1/11/2022 | 1:47 PM PST

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EXHIBIT A

SCOPE OF WORK AND SCHEDULE
FOR

WORKFORCE HOUSING PROPERTY MANAGEMENT SERVICES

HIP Housing Afford able Ventures, Inc. (HHAV) will provide prope rty m anagement and income certification compliance services for 22 units on Triton Drive with the following designations of affordability as stipulated in the Affordable Housing Regulatory Agreement and Declarations of Restrictive Covenants, Document #2021 -007087, dated 1/15/2021, between the City of Foster City and Summerhill Pilgrim Triton, LLC: 2 units at the Very Low-Income designation; 2 units at the Low-Income designation; 10 units at the Moderate- Income designation; and, 8 units at the Workforce designation. Proposed services include the following:

1. Set-up
 Review of relevant ordinance and documents, including loan documents  Customization of compliance forms, analytics, and reports  Meetings and calls with the City and HHAV staff to discuss process, deliverables, schedule, duties, and reporting requirements, requests, analytics, and schedule
 Preparation of marketing plan and file preparation

2. Initial Lease-ups
 Marketing the property pursuant to criteria and protocols established by the city  Showings of apartments to prospective applicants
 Processing applications, application fees, and credit and background checks

3. Move-Ins
 New move-in certifications and notification to the city of tenant status  Collection of deposit and initial rent
 Initial tenant income certifications
 Lease preparation and execution
 File management

4. Compliance, Annual Recertifications and Reporting
 Recertification of tenant income
 Preparation of analytics and reports and presentation and/or submittal of report to the City of Foster City

5. Property Management
CONTRACTOR will provide on -site maintenance team member with approximately 50% of their time devoted to the property. CONTRACTOR recommends that this person live in one of the apartments on site. Duties s hall be managed by CONTRACTOR’S office manager and property manager assigned t o the property and shall include:
 Lease management and enforcement
 Tenant relations
 Rent collection
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 Responding to tenant work order requests for repairs and maintenance  Annual unit inspections
 Common area management, including landscaping, janitorial services, trash, compost and recycling management, parking, fencing, and building exterior inspections and repairs and maintenance as needed.

6. Management
CONTRACTOR will provide project management services for any major repairs or construction/rehabilitation projects to the property’s exterior buildings, grounds, or interiors that total $10,000 or more, including items under warranty. Services for each project include:
a. Determining scope of work in accordance with city requirements b. Bidding the projects to appropriate vendors pursuant to city requirements c. Managing project team and vendors
d. Managing invoices and coordinating payments
e. Coordination with the City regarding inspections and completion of work

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EXHIBIT B

CONTRACTOR’S FEE SCHEDULE

The fee for these services is a total of $36,960. A breakdown of the fees and charges is as follows:

Set-up fee and lease up fees $13,200
Compliance and property management $23,760
Total: $36,960

Plus a set-aside of $20,000 for repairs and maintenance:

Maintenance and repairs (time and materials) fund $20,000

A more detailed breakdown of the fees is as follows:

Initial Set-Up and Lease-Up – one-time fees

Service Per Unit
Charges
One-Time Fee
Initial set-up $100 $2,200
Lease-up fees* $500 $11,000
Total $13,200
*Lease up fees are charged when each unit is occupied or turns over, when the tenant moves into the unit. These fees would not apply to the unit occupied by an on-site maintenance staff member.

Compliance & Property Management – monthly fees

Servic
e
Per Unit
Charges
per month
Monthly
Fee for 22
units
Annual
Fee for 22
units
Property management and compliance fee $80 $1,760 $21,120 Accounting fee $10 $220 $2,640
Total fees $90 $1,980 $23,760

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Repairs & Maintenance, In-house - time and materials estimate While it is difficult to anticipate repair and maintenance charges, because the property is a new building, it is anticipated these charges to be signi ficantly lower than an older pr operty.

Service calls tend to be related to plumbing, appliances, and minor electrical issues. A holding fund of a pproximately $20,000 for maintenance and repairs will be provided , although it is highly unlikely that costs will approach that amount.

Servic
e
Hourly
Rates (2021
rates)
Estimate per
unit per
month
Monthly
Fee for 22
units
Annual
Fee for 22
units
Time
General maintenance and
repairs
$75
Cabinetry, countertops,
minor construction
$100
Plumbing and electrical $125
Subtotal estimate - time $50 $1,100 $13,200
Contingency 10%
Total Time $660 $14,520
Total Materials $249 $5,480
Total Time & Materials $20,000
* In-house materials are billed at no mark-up. External vendors are billed at no mark-up.

Project Management - billed at 10% of total project cost

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EXHIBIT C

INSURANCE FORMS

CONTRACTOR shall provide, in addition to the Certificates of Insurance, original Endorsement affecting the coverages specified in Section 12 - INSURANCE of the Agreement on the attached form. No substitute form will be accepted.

ATTACHED

1. Insurance Coverage Form

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EXHIBIT D
This INSURANCE COVERAGE FORM modifies or documents insurance provided under the following:

Named Insured: Effective Work Date(s):

Description of Work/Locations/Vehicles:

ADDITIONAL INSURED: City of Foster City/Estero Municipal Improvement District (CITY) 610 Foster City Boulevard, Foster City, CA 94404
Attention: _________________________________
Contract Administrator
Endorsement and Certificates of Insurance Required
The Additional Insured, its elected or appointed officers, officials, employees and volunteers are included as insureds with regard to damages and defense of claims arising from: (Check all that apply)
Insurer Policy
No.

General L iability: (a) act ivities performed by or on behalf of the Named Insured, (b) products and completed operations of the Named Insured, (c) premises owned, leased occupied or used by the Named Insured, and/ or (d) permits i ssued for op erations performed by th e Named Insured. {Note: MEETS OR EXCEEDS ISO Form # CG 20 10 11 85}

Auto Liability: th e ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Named In sured, regardless o f whe ther liability is attributable to th e Named Insured or a combination of the Named Insured and the Additional Insured, its elected or appointed officers, officials, employees or volunteers.

Other:

Certificates of Insurance Requ ired (no endorsement ne eded) (Check all that apply)
Insurer Policy
No.

Workers Compensation : work performed by employees of the Named Insured while those employees are engaged i n work under the simultaneous directions and control of the Named Insured and the Additional Insured.

Professional Liability:

PRIMARY/NON-CONTRIBUTORY: This insurance is primary and is not additional to or contributing with any other insurance carried by or for the benefit of Additional Insureds.

SEVERABILITY OF INTEREST: The insurance afforded by this policy applies separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the insurer’s limit of liability.

PROVISIONS REGARDING THE INSURED'S DUTIES AFTER ACCIDENT OR LOSS: Any failure to comply with reporting provisions of the pol icy shall not affect coverage provided to the Additional Insured, its elected or appointed officers, officials, employees, or volunteers.

CANCELLATION NOTICE . The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice (ten (10) da ys if canceled due to non-payment) by regular mail return re ceipt requested has bee n g iven to the Add itional Insured. Such notice shall be addressed as shown above.

WAIVER OF SUBROGATION: The insurer(s) named above agree to waive all rights of subrogatio n against the CITY, its elected or appointed officers, officials, agents, volunteers and employees for losses paid under the terms of this policy which arise from work performed by the Named Insured for the CITY.

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Nothing herein contained shall vary, alter or extend any provision or condition of the Policy other than as above stated.

SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER

I, __________________________ ____________________________________(print/type name), warrant that I have authori ty to bind th e above -named in surance comp any and by my signa ture hereon do so bind this company.

SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required)

ORGANIZATION: TITLE:

ADDRESS:

TELEPHONE: ( ) DATE ISSUED:

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77 DETAIL LINE ITEM: 139 - Workforce Housing
Account String Object Name / Description
FY 23-24
Budget
FY 24-25
Requested
Increase
(Decrease) Notes
Totals $386,187 $341,161 ($45,026)
Totals Employee Services $18,977 $21,883 $2,906
139-0846-419-41-10 PERMANENT SALARIES $14,300 $14,837 $537 139-0846-419-41-21 PERS RETIREMENT $1,662 $1,688 $26
139-0846-419-41-35 FLEX ALLOWANCE $2,069 $2,276 $207
139-0846-419-41-36 WORKERS COMPENSATION $57 $45 ($12)
139-0846-419-41-39 OTHER FRINGE BENEFITS $889 $918 $29
139-0846-419-41-61 EMPLOYEE BENEFIT-PERS UAL $0 $2,119 $2,119 Totals Internal Services $377 $0 ($377)
139-0846-419-41-40 COMPENSATED ABSENCES $377 $0 ($377)
Totals Services and Supplies $366,833 $319,278 ($47,555) 139-0846-419-42-46 MAINT-FACILITY & EQUIP $14,520 $14,520 $0 139-0846-419-42-46 Repairs and Maintenance - HHAV time billed to project $14,520 $14,520 $0 139-0846-419-42-48 UTILITIES & COMMUNICATION $73,120 $75,300 $2,180 139-0846-419-42-48 Common Area Electricity $10,453 $11,450 $997 139-0846-419-42-48 Gas - water heating only $9,312 $9,300 ($12) 139-0846-419-42-48 Sewer $26,861 $27,860 $999
139-0846-419-42-48 Trash removal $5,604 $5,600 ($4)
139-0846-419-42-48 Water - Common Area Landscape Irrigation $9,000 $9,000 $0 139-0846-419-42-48 Water - Fire System $3,539 $3,540 $1 139-0846-419-42-48 Water - Tenant Usage $8,351 $8,550 $199 139-0846-419-42-51 CONTRACT, PROF, SPEC SVCS $154,698 $102,794 ($51,904) 139-0846-419-42-51 EV Cahrger Installation Project $50,000 $0 ($50,000) 139-0846-419-42-51 Lease-Up Fees - $500/contract $5,500 $1,000 ($4,500) 139-0846-419-42-51 Legal Expenses $1,300 $1,203 ($97)
139-0846-419-42-51 Maintenance Technician and Ppty Manager Sal and Benefits $18,748 $18,748 $0 139-0846-419-42-51 Management Fees $23,587 $23,587 $0
139-0846-419-42-51 Materials and Supplies - HHAV $3,600 $4,600 $1,000 139-0846-419-42-51 Miscellaneous Ops and Maint - Key replacement/Others $1,030 $1,030 $0 139-0846-419-42-51 Property Manager Salaries & Benefits $22,559 $23,236 $677 139-0846-419-42-51 Repairs - outside contractors for operating expenses $10,272 $11,272 $1,000 139-0846-419-42-51 Security-Fire Alarm Monitoring $9,984 $10,000 $16 139-0846-419-42-51 Technology Property Management software $3,282 $3,282 $0 139-0846-419-42-51 Telephone line for building entry $3,600 $3,600 $0 139-0846-419-42-51 Telephone line for Fire Alarm $1,236 $1,236 $0 139-0846-419-42-56 EQUIP REPLACEMENT CHARGES $22,000 $22,000 $0 139-0846-419-42-62 INSURANCE & OTHER COSTS $67,365 $69,386 $2,021 139-0846-419-42-65 MISC EXPENSE $1,000 $1,000 $0
139-0846-419-42-85 LANDSCAPE & PEST CONTROL $29,200 $29,200 $0 139-0846-419-42-85 LANDSCAPE $14,200 $14,200 $0
139-0846-419-42-85 PEST CONTROL $15,000 $15,000 $0
139-0846-419-42-98 POSSESSORY INT PPTY TAX $4,930 $5,078 $148 Detailed Analysis:

Note None
City of Foster City's FY 2024-25 Final Budget Page 223

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PROFESSIONAL SERVICES AGREEMENT
FOR

PROPERTY MANAGEMENT AND LEASING

This Agreement is made and entered into as of th e 24th day of February 2021 by and between the City of Foster City hereinafter called "CITY" and HIP Housing Affordable Ventures, INC. hereinafter called "CONSULTANT".

RECITALS

This Agreement is entered into with reference to the following facts and circumstances:

A. That CITY desires to engage CONSULTANT to provide professional services in the CITY;

B. That CONSULTANT is qualified to provide such services to the CITY and;

C. That the CITY has elected to engage the services of CONSULTANT upon the terms and conditions as hereinafter set forth.

1. Services. The service s to be performed by CONSULTANT under this Agreement shall inc lude those services set forth in Exhibit A, which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Performance of the work specified i n said Exhibit A is hereby made an obligation of CONSULTANT under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

Where in conflict, the terms of this Agreement supersede a nd prevail over any terms set forth in Exhibit A.

2. Term; Termination. (a) The term of this Agreement shall be for a period of one year commencing on the date of this Agreement, and terminating on the first anniversary of the commencement date. This Agreement, i f not extended in writing by Owner and Agent prior to the termination date, shall be deemed a month to month agreement terminable by either party upon 30 days written notice. (b) Notwithstanding the provisions of (a) abov e, either party may terminate this Agreement without cause by giving written notice not less than ten (10) days prior to the effective date of termination, which date shall be included in said n otice. In the event of such termination, CITY shall compensate CONSULTANT for services rendered, and reimburse CONTRACTOR for costs and expenses incurred, to the date of termination, calculated in accordance with the provisions of paragraph 3. In ascertain ing the services actually rendered to the date of termination, consideration shall be given both to completed work and work in process of completion. Nothing herein contained shall be deemed a limitation upon the right of CITY to terminate this Agreement f or cause, or DocuSign Envelope ID: 944C7081-CA27-4DB2-B2A6-6419D278DBBF

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otherwise to exercise such rights or pursue such remedies as may accrue to CITY hereunder.

3. Compensation; Expenses; Payment . CITY shall compensate CONSULTANT for all services performed by CONSULTANT hereunder in an amount based upon CONSULTANT’s hourly rates during t he time of the performance of said services. A copy of CONSULTANT’s hourly rates for which services hereunder shall be performed are set forth in CONSULTANT’s fee schedule marked Exhibit “B” her eof, attached hereto and by this reference incorporated herein.

Notwithstanding the foregoing, the combined total of compensation and reimbursement of costs payable hereunder shall not exceed the sum forty- five thousand dollars ($45,000). Invoices for amount s in exc ess of forty- five thousand dollars ($45,000) shall not be paid unless the performan ce of services and/or reimbursement of costs and expense s in excess of said amounts have been approved in advance of performing such services or incurring such costs and expenses by the City Manager (for contracts less than $50,000) or City Council (for contracts $50,000 or more) evidenced by motion duly made a nd carried and a written contract amendment having been executed.

Compensation and reimbursement of costs and e xpenses hereunder shall be payable upon monthly billing therefor by CONSULTANT to CITY, which billing shall include an itemized statement, briefly describing by task and labor category or cost/expense items billed.

4. Additional Services . In the event CITY desires the performance of additional services not otherwise included within the servi ces described in Exhibit A, such services shall be authorized in advance of the performance thereof by the City Manager (for contracts less than $50,000) or City Council (for contracts $ 50,000 or more) by motion dul y made and carried. Such amendment to thi s Agreement shall include a description of the services to be performed thereunder, the maximum compensation a nd reimbursement of costs and expenses payable there for, t he time of performance thereof, and such other matters as the parties deem appropriate for the accomplishment of such services. Except to the extent modified by written amendment, all other terms an d conditions of this Agreement shall be deemed incorporated in each such amendment.

5. Records. CONSULTANT shall keep and maintain accurate recor ds of all time expended and costs and expenses incurred relating to services to be performed by CONSULTANT hereunder. Said records shall be available to CITY for review and copying during regular business hours at CONSULTANT’s place of business or as other wise agre ed upon by the parties.

6. Authorization. This Agreement becomes effective when endorsed by both parties in the space provided below.

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7. Reliance on Profess ional Skill of CONSULTANT. CONSULTANT represents that it has the necessary professional skills t o perform the services required and the CITY shall rely on such skills of the CONSULTANT to do and pe rform the work. In performing services hereunder CONSULTANT shall adhere to the standards generally prevailing for the performance of expert consu lting ser vices similar to those to be performed by CONSULTANT hereunder.

8. Documents. All documents, plans, drawings, renderings, and other papers, or copies thereof, as finally rendered, prepared by CONSULTANT pursuant to the terms of this Agreement, sh all, upon preparation and delivery to CITY, become the property of CITY.

9. Relationship of Parties . It is u nderstood that the relationship of CONSULTANT to the CITY is that of an independent contractor and all persons working for or under the direction of CONSULTANT are its agents or employees and not agents or employees of the CITY.

10. Schedule. CONSULTANT shall adhere to the schedule set forth in Exhibit A; provid ed, that CITY shall grant reasonable extensions of time for the performance of such serv ices occa sioned by governmental reviews of CONSULTANT’s work product or other unavoidable delays; provided, further, that such unavoidable delay shall not include strik es, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, CONSULTANT’s officers or employees.

CONSULTANT acknowledges the importance to CITY of CITY’s Project schedule and agrees to put forth its best professional efforts to perform its services under this Agreement in a manner consistent with that schedule.

11. Indemnity. To the fullest extent allowed by law, CONSULTANT hereby agrees to defend, indemnify, and save ha rmless CITY and Estero Municipal Improvement District, its Council, boards, commissions, officers, employees and agents, from and against any and all claims, suits, actions liability, loss, damage, expense, cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, wh ich may be brought against, o r suffered or sust ained by, City of Foster City or Estero Municipal Improvement District, its Council, boards, commissions, officers, employees or agents caused by, or a lleged to have been caused by, the negligence, intentional tortuous act or omission, or willful misconduc t of CONSULTANT, its officers, employees, subcontractors or agents in the performance of any services or work pursuant to this Agreement.

The duty of CONSULTANT to indemnify and save harmless, as set forth herein, shall include the duty to defend as set f orth in Section 2778 of the California Ci vil Code; provided, however, that nothing herein contained shall be construed to require CONSULTANT to indemnify City of Foster City and Estero Municipal Improvement Di strict, its Council, boards, commissions, officers, employees and agents against any res ponsibility or liability in contravention of Section 2782 of the California Civil Code.

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CONSULTANT’s responsibility for such defense and indemnity obligations shall su rvive the termination or completion of this Agr eement for the full period of time allowed by law.

The defense and indemnification obligations of this agreement are undertaken in addition to, and sh all not in any way be limited by, the insurance obligations contained within this Agreement.

12. Insurance. CONSULTANT shall acquire and maintain Workers’ Compensation, employer’s liability, commercial general liability, owned and non -owned and hired auto mobile liability, and professional liability insurance coverage relating to CONSULTANT’s services to be p erformed hereunder covering CITY’s risks in form subject to the approval of the City Attorney and/or CITY’s Risk Manager. The minimum amounts of covera ge corresponding to the aforesaid categories of insurance per insurable event, shall be as follows:

Insurance Category Minimum Limits

Workers’ Compensation statutory minimum

Employer’s Liability $1,000,000 per accident for bodily injury or disease

Commercial General Liability $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury,
personal injury and property damage

Automobile Liability $1,000,000 per accident for bodily injury and property damage (coverage
required to the extent applic able to
CONSULTANT’s vehicle usage in
performing services hereunder)

1Professional Liability $1,000,000 per claim and aggregate

It shall be a re quirement under this Agreement that any available insurance proceeds broader than or in excess of the specifie d minimum insurance coverage requirements and/or limits sh all be available to the CITY as an Additional I nsured. Furthermore, the requirements fo r coverage and limits shall be the greater of either (1) the minimum coverage and limits specified in this Agr eement or (2) the broader

1 Note: Professional liability insurance coverage is not required if the CONSU LTANT is not providing a service regulated by the state. (Examples of service providers regulated by the state are insurance agents, professional engi neers, doctors, certif ied publi c a ccountants, lawyers, etc.) Please check and initial the following if p rofessional liability is NOT required for this agreement.  Recommended ______ [Project Manager]  Approved _______[Risk Manager]
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coverage and maximum limits of c overage of any insurance policy or proceeds available to the named Insured.

CONSULTANT agrees t o include with all subcontractors in their subcontracts the same requirements and provisions of this agreement including the indemnity and insurance requiremen ts to the extent they apply to the scope of the subcontractor’s work. Subcontractors hi red by CONSULTANT shall agree to be bound to CONSULTANT and CITY in the same manner and to the same extent as CONSULTANT is bound to CITY under this Agreement and its a ccompanying documents. Subcontractors shall fu rther agree to include these same provisi ons with any sub - subcontractors. A copy of the indemnity and insurance provisions of this Agreement will be f urnished to the Subcontractor upon request.

CONSULTANT shall require all subcontractors to provide a val id certificate of insurance and the requi red endor sements included in the subcontract agreement and will provide proof of compliance to the CITY prior to commencement of any work by the subcontractor.

Concurrently with the execution of this Agreement, CON SULTANT shall furnish CITY, on the form i ncluded a s Exhibit D or similar form, with certificates and copies of information or declaration pages of the insurance required hereunder to be included as Exhibit C h ereto. With respect to evidence of commercial general liability and automobile liabilit y insurance coverage, CONSULTANT must also include in Exhibit C the following original endorsements:

(a) Precluding cancellation or reduction in per occurrence limits before the expiration of thirty (30) days (10 d ays for nonpayment) after CITY shall have received written notification of cancellation in coverage or reduction in per occurrence limits by first class mail;

(b) Naming the City of Foster City and Estero Mun icipal Improvement District, its Council, offic ers, boards, commissions, employees, and agents, as additional insureds; and

(c) Providing that CONSULTANT’s insurance coverage shall be primary insu rance with respect to City of Foster City and Estero Municipal Improvement District, its Council, officer s, boards, commissions, employees, and ag ents, and any insurance or self - insurance maintained by CITY for itself, its Council, officers, boards, commis sions, employees, or agents shall be in excess of CONSULTANT’s insurance and not contributory with it.

CONSULTANT and its insurer may not seek co ntribution from CITY’s insurance or self-insurance.

The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or exc ess insurance. Any umbrella or excess insuranc e shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non -contributory basis for the benefit of CITY, to the extent required by this Agreement, DocuSign Envelope ID: 944C7081-CA27-4DB2-B2A6-6419D278DBBF

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before the CITY’s insurance or self -insurance may be called upon to protect CITY as a named Insured.

All sel f-insured retentions (SIR) must be disclosed to CITY for approval and shall not reduce the limits of liability coverage. Policies containing and SIR provision shall provide or be endorsed to provide that t he SIR may be satisfied by either the nam ed CONSULTANT/Named Insured or CITY.

CITY reserves the right to obtain a full certified copy of any insuran ce policy and endorsements. Failure to exercise this righ t shall not constitute a waiver of right to exercise later.

Any and all Subcontractors shall agree to be bound to CONSULTANT and CITY in the same manner and to the same extent as CONSULTANT is bound to CITY under this Agreement. Subcontractors shall furt her agree to include the same requirements and provisions of this Agreement, including t he indemn ity and insurance requirements, in any agreement with sub-subcontractors to the extent that they appl y to the scope of the sub-subcontractor’s work. A copy of the indemnity and insurance provisions of this Agreement shall be furnished to any subc ontractor upon request.

CONSULTANT shall maintain insurance as required by this Agreement to the fullest amou nt allowed by law and shall maintain in surance for a minimum of five (5) years following completion of th is project or service.

In the event CONSULTANT fails to obtain or maintain completed operations coverage as required by this Agreement, the CITY at its sole discretion may purchase the coverage required and t he cost will be paid by CONSULTANT.

13. WORKERS' COMPENSATION. CONSULTANT certifies that he is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self -insurance in accordance with the provisions of that Code, and CONSULTANT certifies that he will comply with such provisions before commencing the performance of the work of this agreement.

14. NON-DISCRIMINATION. The CONSULTANT will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The CONSULTANT will take affirmative action to ensure that applicants are em ployed and the employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall i nclude, b ut not be limited to the following: employment, advancement, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection f or training, including apprenticeship. T he CONSULTANT shall at all times be in compliance with the requirements of the Federal Americans With Disabili ties Act (Public Law 101 -336) which DocuSign Envelope ID: 944C7081-CA27-4DB2-B2A6-6419D278DBBF

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prohibits discriminati on on the basis of disability by public entitie s. The CONSULTANT agrees to post in cons picuous p laces available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.

15. Notice. All notices required by this Agreeme nt shall be given to the CITY and CONSULTANT in wr iting, by first class mail, postage prepaid, addressed as follows:

CITY: City of Foster City
610 Foster City Boulevard
Foster City, CA 94404-2299
Attention: Marlene Subhashini

CONSULTANT: HIP Housing Affordable Ventures INC
800 S Claremont St #210
San Mateo, CA 94402
Steven McDonald, Vice President
(650) 348-6660
[email protected]

16. Non-Assignment. This Agreeme nt is not assignable either in whole or in part.

17. Amendments. This Agreement may be amended or modif ied only by written agreement signed by both parties.

18. Validity. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of a ny other provision of this Agreement.

19. Governing Law . This Agreement shall be gover ned by th e laws of the State of California and any suit or action initiated by either party shall be brought in the County of San Mateo, California. In the event of li tigation between the parties hereto to enforce any provision of the Agreem ent, the unsuccessful party will pay the reasonable attorney’s fees and expenses of litigation of the successful party.

20. Mediation. Should any dis pute arise out of this Agreemen t, the parties shall meet in mediation and attempt to reach a resolution w ith the assistance of a mutually acceptable mediator. Neither party shall be permitted to file legal action without first meeting in mediation and mak ing a good faith attempt to rea ch a mediated resolution. The costs of the mediator, if any, shall be pai d equally by t he partie s. If a mediated settlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and ea ch party shall bear its own leg al costs.

21. Conflict of Interest. CONSULTANT may serve other clients, but none who are active within the City of Foster City or who conduct business that DocuSign Envelope ID: 944C7081-CA27-4DB2-B2A6-6419D278DBBF

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would place CONSULTANT in a "conflict of interest" as that term is defined in State law.

22. Entire Agreement . This Agreement, including Exhibit s A, B C, and D , comprises the entire Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their res pective officers duly authorize d in that behalf.

CITY OF FOSTER CITY

Dated: _________________________________ Peter Pirnejad, City Manager

ATTEST:

Dated: ________________________________ Priscilla Schaus, City Clerk

APPROVED AS TO FORM

Dated:

Jean B. Savaree, City Attorney

HIP HOUSING AFFORDABLE VENTURES
INC

Dated:

Steven McDonald, Vice President
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EXHIBIT A

SCOPE OF WORK AND SCHEDULE
FOR

EXISTING UNIT PURCHASE PROGRAM

1. Services to be Performed b y Agent. Agent shall lease, operate, maintain, manage and repair the Properties. Attached as Exhibit E is a list of the Properties as of the date of this Agreement. Perform all usual and customary management functions to facilitate the effici ent operation of the Propertie s f or the purposes described in this Agreement. Agent shall perform these duties with due diligence. W ithout limiting the generality of the foregoing, Agent shall do all of the following:

A. Leasing. Agent shall advertise in the Foster City Islander and/or other media as determined in consultation with Owner when a vacancy occurs , select qualified tenants and lease the Properties in accordance with the Leasing Guidelines attached hereto as Exhibit F. The Leasing Guidelines may be changed from time to time by mutual a greement. Agent shall develop the forms of lease application and lease agreement to be used for the Properties, which forms shall be subject to the prior approval of Owner. Agent shall enter into the leases as agen t on behalf of Owner. A copy o f t he l ease application and f ully-executed l ease, a long with the certification of income verification and household s ize on a Tenant Income Certificatio n (TIC) form provided by Agent shall be sent to Owner within 15 days after execution of the lease.

Agent shall maintain individual tenant files containing a copy of the lease, verification of income form, notices and all correspondence with the tenant. All tenant files shall be maintained a minimum of 4 years after the tenant has vacated the Property.

B. Collection of Rent. Agent shall ensure that all rents and any other moneys payable under the leases are paid by the tenants of the Properties in a timely manner. Agent shall require that rents and any other moneys payable under the leases are paid directly t o the Owner. On the 6th day of each month Owner shall notify Agent and Agent's designated Property Management Company when rent has not been received. Notification may be by email, letter or fax as determined by the owner.

C. Enforcement of Leases. Agent shall secure full compliance by each tenant with the terms of its lease. Upon default by a tenant, Agent shall pursue legal remedies in accorda nce with applicable California law for recovery of the leased premises. For this purpose, Agent is authorized to sign and serve in the name of the Owner s uch notices as are appropriate, to institute and prosecute actions to evict tenants and to recover possession of the Property in the name of the Owner, to recover rents and other sum s due and when expedient to se ttle, compromise and release such actions or suits or reinstate such tenancies. Agent shall keep Owner informed of such warnings and/or actions a nd shall follow any instructions of Owner as Owner may reasonably prescribe for t he conduct of any such action. Agent may n ot pursue monetary damages against a tenant without the prior written consent of Owner.

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Agent shall perform site inspections at the end of the first month of tenancy and annually thereafter to ascertain the condition of th e Properties. For this purpose, and as limited in this paragraph, Agent is authorized to make or cause to be ma de and supervise repairs, alterations, landscaping and decorating on the Properties. Agent may enter into service contracts with unaffiliated third parties for the performance of services hereunder, provided each contract shall be terminable by Owner upon 30 days written notice. Front yard landscaping shall be maintained by a landscaping firm hired by Agent. Any single expenditure in excess of $300 and cumulative expenditures in excess of $500 per Property shall require the prior written consent of Owner. Owner's prior consent shall not be necessary with respect to monthly or recurring operating charges and emergency repairs that are necessary, in the opinion of the Agent, to p rotect the Properties from damage, to prevent bodily harm or property damage, to avoid the suspension of services, to avoid penalties or fines and to maintain the services required under the lease to be provided to the tenant. Agent shall obtain three bids for any work which exceeds $10,000 and shall submit the bids to the Owner for approval. Agent shall work diligently to complete all repairs in a timely manner and in particular when a Property is vacant so the Property can b e promptly leased to another t enant. Excep t under unusual circumstances, the Properties should be vacant no more than 30 days.

Agent shall notify Owner whenever a Property will be vacant more than 30 days. Upon acquisition of a Property by Owner and upon t he vacancy of a Property follo wing the termination of a tenancy, Agent shall promptly inspect the Property and determine a course of action to perform all necessary repairs and improvements. Agent shall notify Owner of the course of action and unless Owner objects within 10 days from r eceipt of Agent's notice, Agent may proceed to perform the repairs and impro vements. At the direction of the Owner, inspections, repairs and improvements may be performed by employees of the City of Foster City.

E. Taxes and Assessments. Taxes and assess ments shall be paid directly by Owner and not by Agent. Agent shall promptly deliver to Owner notices relating to taxes and assessments received by Agent.

F. Employees. Agent shall hire, discharge and supervise all employees required for the operation and maintenance of the Properties. All employees performing work (other than th e City employees specifically designated by Owner to perform inspection and repair work) shall be employees of Agent and not Owner. Agent shall comply with all applicable laws and regulations concerning worker's compensation, social security, unemployment insurance, hours of labor, wages, working conditions and all other rules and regulations governing employees.

Owner shall accept or reject the proposed budget withi n 30 days after its receipt. I f Owner rejects, Owner and Agent shall meet in good faith to re solve their differences.

Once the budget is agreed upon, Agent shall perform its services in accordance with the budget. If additional properties are added, Agent shall modify the budget accordingly

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2. Accounts.

3. Records. Agent shall establish and maintain a comprehensive system of, tenant and property records and work order log for the Properties separate and apart from any other properties Agent owns or man ages. The work order log shall be submitted to Owner on the first of each month or upon request. All records shall be the property of Owner and shall be available for examination at reasonable hours by any authorized representative of Owner. For each expen diture, Agent shall have invoices submitted directly to the Owner for payment with the property address on each invoice.

4. Reports.

A. Monthly. At the end of the first month of a tenancy, Agen t shall perform a site visit and inspection. Following the inspection, Agent shall send a written report of the inspection to the Owner.

B. Annually. On March 1 of each calendar year, Agent shall provide Owner with the following reports:

(i) A certification of the income of each current resident as of the date of the last inco me certification, the current rent charged each resident and the amount of any utilities included in the rent. Owner may specify the format for this report.

(ii) An inspection report, including a list of any materi al physical defects in the Properties, including a description of any major repair or maintenance work to be performed in the following year.

(iii) A statement regarding the general management of the Properties, including information about tenant relations, communications from tenants, the physical condition of the Properti es and any o ther information deemed relevant by Agent or requested by Owner.

(iv) A list of the expiration dates of each lease.

5. Fidelity Bond. Agent will furnish, at Agent' s expense, a fidelity bond in the amount of $20, 000, to protect the Owner agai nst misapplication of funds from the Properties by Agent and its employees.

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EXHIBIT B

CONSULTANT’S FEE SCHEDULE

Agent's Fees. As compensation for Agent's services hereunder, Owner shall pay to Agent (a) a management fee eq ual to $ 230.00 per unit per mo nth, paid monthly in arrears; and (b) a leasing fee equal to $1,000.00 paid from the initial rental payment; and (c) a rehab admi nistration and supervision fee equal to 10% of the value of initial rehab work conducted immediately after initial acquisition of the Property to prepare the Property for tenancy. For services which are not enumerated in this Agreement, Agent and Owner sha ll mutually agree upon any additional fee to be paid to Agent. Services which are not included in this Agreement include management and supervision services relating to fire restoration or major rehabilitation. The total amount of compensation to be paid under this contract shall be less than $45,000.

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EXHIBIT C

INSURANCE FORMS

CONSULTANT shall pr ovide, in addition to the Certificates of Insurance, original Endorsement affecting the coverages specified in Section 12 - INSURANCE of the Agreement on the attached form. No substitute form will be accepted.

ATTACHED

1. Insurance Coverage Form

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EXHIBIT D
This INSURANCE COVERAGE FORM modifies or documents insurance provided under the following:

Named Insured: Effective Work Date(s):

Description of Work/Locations/Vehicles:

ADDITIONAL INSURED: City of Foster City/Estero Municipal Improvement District (CITY) 610 Foster City Boulevard, Foster City, CA 94404
Attention: _________________________________
Contract Administrator
Endorsement and Certificates of Insurance Required
The Additional Insured, its elected or appointed officers, offici als, employees and volunteers are included as insureds with regard to damages and defense of clai ms arising from: (Chec k all that apply)
Insurer Policy
No.

General Liability : (a) act ivities performed by or on behalf of the Named Insured, (b) products and completed o perations of the Named Insured, (c) premises owned, leased occupied or used by the Named Insured, and/or (d) permits issued for operations performed by the Named Insured. { Note:

MEETS OR EXCEEDS ISO Form # CG 20 10 11 85}

Auto Liabil ity: the own ership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Named Insured, regardless of whether liability is attributable to the Named Insured or a combination of the Named Insured and the Addi tional Insured, its elected or appointed officers, officials, employees or volunteers.

Other:

Certificates of Insurance Required (no endorsement ne eded) (Check all that apply)
Insurer Policy
No.

Workers Compensat ion: work pe rformed by employees of the Named Insured while those e mployees are engaged i n work under the simultaneous directions and control of the Named Insured and the Additional Insured.

Professional Liability:

PRIMARY/NON-CONTRIBUTORY: This insurance is primary and is not additional to or contributing with any other insurance carried by or for the benefit of Additional Insureds.

SEVERABILITY OF INTEREST: The insurance afforded by this policy ap plies separately to each insur ed who is se eking coverage or against whom a claim is made or a suit is brought, except with respect to the insurer’s limit of liability.

PROVISIONS REGARDING THE INSURED' S DUTIES AFTER ACCIDENT OR LOSS : Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the Additional Insured, its elected or appointed officers, officials, employees, or volunteers.

CANCELLATION NOTICE. The insurance afforded by this policy shall not be suspend ed, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior writt en notice (ten (10) da ys if canceled due to non -payment) by regular mail return receipt requested has been given to the Additional Insured. Such notice shall be addressed as shown above.

WAIVER OF SU BROGATION: The insurer(s) named above agree to waive al l rights of subrogatio n against the CITY, its elected or appointed officers, officials, agents, volunteer s a nd employees for losses paid under the terms of thi s policy which arise from work performed by the Named Insured for the CITY.

Nothing herein contained shall vary, alter or extend any provision or condition of the Policy other than as above stated.

SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER

I, ______________________________________________________________(print/type name), warra nt that I have authori ty to bind the above-named insurance company and by my signature hereon do so bind this company.

SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required)

ORGANIZATION: TITLE:

ADDRESS:

TELEPHONE: ( ) DATE ISSUED:

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EXHIBIT E

PROPERTIES

1. Five bedroom house at 833 Gull Avenue, Foster City.

2. Duplex at 631/633 Comet Drive, Foster City (two bedroom unit and three bedroom unit).

3. Duplex at 833/835 Comet Drive., Foster City (two bedroom unit and three bedroom unit).

4. Single family house at 398 Chesapeake Avenue, Foster City (three bedroom unit).

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EXHIBIT F

LEASE GUIDELINES

1. Eligible Households (Priorities as de termined by Community Development Agency Minute Order No. 18 and Resolution No. 2020-24):

A. First priority: Very low income tenants (as defined in California Health and Safety Code Section 50105) who are currently living in a Below Market Rate deed restricted unit i n Foster City, and have been so for at least twelve (12) months, whose unit is subject to termination of affordability restrictions within three (3) years;

B. Second priority: Low income tenants (as defined in Cal ifornia Health and Safety Code Section 50105) who are currently living in a Below Market Rate deed restricted unit in Foster City, and have been so for at least twelve (12) months, whose unit is subject to termination of affordability restrictions within three (3) years;

C. Third priority: Very l ow income tenants (as defined in California Health and Safety Code Section 50105) living and working in Foster City.

D. Fourth priority: Low income tenants (as defined in California Health and Safety Code Section 50079.5) living and working in Foster City.

E. Fifth Priority: Very low income tenants (as defined in California Health and Safety Code Section 50105) living in Foster City.

F. Sixth Priority: Low income tenants (as defined in California Health and Safety Code Section 50079.5) living in Foster City.

G. Seventh Priority: Very low income tenants (as defined in California Health and Safety Code Section 50105) who are employees of the City of Foster City.

H. Eighth Priority: Low income tenants (as defined in California Health and Safety Code Section 50079.5) who are employees of the City of Foster City.

I. Ninth Priority: Very low income tenants (as defined in California Health and Safety Code Section 50105) who are classroom teachers employed by the San Mateo-Foster City School District, the San Mateo Union High School District or the San Mateo County Community College District.

J. Tenth Priority: Low income tenants (as defined in California Health and Safety Code Section 50079.5) who are class room teachers employed by the San Mateo-Foster City School District, the San Mateo Union High School District or the San Mateo County Community College District.

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K. Eleventh Priority: Very low income tenants (as defined in California Health and Safety Code Section 50105) who work in Foster City.

L. Twelfth Priority: Low income tenants (as defined in California Health and Safety Code Section 50079.5) who work in Foster City.

M. Thirteenth Priority: Very low income tenants (as defined by California Health and Safety Code Section 50105) – all others who are income qualified.

N. Fourteenth Priority: Low income tenants (as defined by California Health and Safety Code Section 50079.5) – all others who are income qualified

2. Household Size. The Owner's program is designed for larger households.

Minimum household size for two -bedroom units shall be three (3) people. Minimum household size for three -bedroom units shall be five (5) people. Minimum household size for a five -bedroom units shall be six (6) peopl e. Tenants not meeting this requirement must be approved by Owner.

3. Affordable Rent. Tenants will pay "affordable rent" as such term is defined in California Health and Safety Code Section 50053.

4. Verification of Income and Household Size. Agent shall ve rify the household size and in come of each tenant and shall certify both on the form attached hereto as Exhibit B-1. Upon renewal of each lease, but in any event no less frequently than once a year, Agent shall reverify household size and th e income of each tenant and adjust the rental amount if necessary. Recertification shall be on the form attached as Exhibit B-1 or a form as agreed by Agent and Owner. If the household size or income level changes so tenant no longer qualifies for the occu pancy of the Property, the lease may not be renewed.

5. Lease Terms. Lease terms shall be month-to-month.

6. Security Deposit. A security deposit in the amount of one months rent shall be obtained. This requirement may be waived or a payment schedule may be arranged on a case by case basis.

7. Notice of Vacan t Units. Notice shall be sent to the Owner as soon as Agent knows a tenant will be vacating the Property.

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CITY OF FOSTER CITY
CONTRACT AMENDMENT NO. ONE (1)

DATE: MARCH 18, 2024

ACCOUNT NUMBERS: 122-0832-463-4281, 122-0832-463-4284, 122-0832- 463-4285, AND 122-0832-463-4287 OF THE

MODERATE AND LOW INCOME HOUSING
FUND

PROJECT NAME: AMENDMENT TO PROFESSSIONAL SERVICES

AGREEMENT FOR PROPERTY MANAGEMENT AND

LEASING

TO: HIP HOUSING AFFORDABLE VENTURES, INC.

CHANGE REQUESTED BY: CITY OF FOSTER CITY STAFF

Based on mutual agreement, HIP Housing Affordable Ventures, Inc. and City of Foster City agree to amend the original Agreement dated February 24, 2021 (“Agreement”) pursuant to Section 3 of the Agreement to for specified amounts, which are identified as follows:

ORIGINAL AGREEMENT AMOUNT $45,000.00
AMOUNT EXPENDED TO DATE $11,008.83
AMOUNT OF AGREEMENT AMENDMENT NO. ONE (1) $122,660.00
REVISED TOTAL AMOUNT OF AGREEMENT $167,660.00

The increased Agreement maximum is needed for substantial repairs (excluding temporary relocation assistance) costs for 833 and 835 Comet Drive totaling $122,660. The supplemental appropriation for repairs was approved by the City Council by Resolution No. 2024-4 on February 5, 2024.

Except as specifically modified herein, all other terms and provisions in the Agreement shall remain unchanged.

DocuSign Envelope ID: 981157E4-2C90-4D6D-8246-6F1609BA5882

6.3 Attachment 8 - Amendment No.1 for Agreement for Property Management for EUPP Units Units

96 ORIGINAL

We, the undersigned consultant, have given careful consideration to the amendment proposed and hereby agree, if this proposal is approved, to submit all invoices and fees necessary for the work abov e specified pursuant to the Agreement, as amended herein.

CITY OF FOSTER CITY

Dated: _________________________________ Patrick Sullivan, Mayor

ATTEST:

Dated: ________________________________ Priscilla Schaus, City Clerk

APPROVED AS TO FORM

Dated:

Benjamin Stock, City Attorney

HIP HOUSING AFFORDABLE VENTURES
INC

Dated:

Kate Comfort Harr, Executive Director
DocuSign Envelope ID: 981157E4-2C90-4D6D-8246-6F1609BA5882 4/30/2024 | 11:58 AM PDT
4/30/2024 | 2:18 PM PDT
4/30/2024 | 3:40 PM PDT
4/30/2024 | 4:11 PM PDT

6.3 Attachment 8 - Amendment No.1 for Agreement for Property Management for EUPP Units Units

97 ORIGINAL

EXHIBIT B-1

CONSULTANT’S FEE SCHEDULE
Revised March 18, 2024

Agent's Fees. As compensation for Agent's services hereunder, Owner shall pay to Agent (a) a management fee equal to $230.00 per unit per month, paid monthly in arrears; and (b) a leasing fee equal to $1,000.00 paid from the initial rental payment; and (c) a rehab admi nistration and supervision fee equal to 10% of the value of initial rehab work conducted immediately after initial acquisition of the Property to prepare the Property for tenancy. For services which are not enumerated in this Agreement, Agent and Owner sha ll mutually agree upon any additional fee to be paid to Agent. Services which are not included in this Agreement include management and supervision services relating to fire restoration or major rehabilitation. The total amount of compensation to be paid under this contract shall be less than $167,660.

DocuSign Envelope ID: 981157E4-2C90-4D6D-8246-6F1609BA5882

6.3 Attachment 8 - Amendment No.1 for Agreement for Property Management for EUPP Units Units

98 EUPP Fund 122 Updated Budget with Carry-Over

6.3 Attachment 9 - FY 24-25 Budget for Fund 122 EUPP Units

99 DATE: November 18, 2024

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Sofia Mangalam, Community Development Director
Nori Jabba, Housing Coordinator
DEPARTMENT: Community Development
SUBJECT: 2024 ASSET MANAGEMENT REPORT ON WORKFORCE

HOUSING

RECOMMENDATION
It is recommended that the City Council, by Minute Order, receive and accept the 2024 Asset Management Report for City-owned Workforce Housing at 501 Pilgrim Drive.

EXECUTIVE SUMMARY
The City of Foster City owns 22 units of rental housing at 501 Pilgrim Drive, commonly referred to as the Workforce Housing Property. Eight (8) of the units are workforce units and 14 are below market rate (BMR) units. Workforce units are rent restricted but not income restricted.

On July 01, 2019, the City Council approved the purchase of 22 units from Summerhill Homes for $7 million. Leasing of the units started in 2022, but due to several factors, all units were not leased until November 2023. Upon one (1) year of fully occupied units, staff prepared a 2024 Asset Management Report (Attachment #1) for the Council’s review and acceptance.

BACKGROUND/ANALYSIS
The 22-unit Workforce Housing property contains five (5) moderate-income two-bedroom units, five (5) low-income units, four (4) very low-income units, and eight (8) workforce units, one (1) of which is for the on-site property manager. The eight (8) units are rented at low-income rates, and one (1) unit is occupied by an on-site property manager who is

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an HHAV employee. It should be noted that California State law requires an on-site property management employee for apartment developments of 16 or more units.

Fund 139 Workforce Housing Fund was established as a dedicated fund in the City’s budget to manage expenses and revenues related to the operation and management of Workforce Housing. On April 18, 2022, the City Council, via City Resolution No. 2022- 42, directed staff to allocate the net income from the Workforce Housing to the Capital Asset and Acquisition Replacement Fund (CAARF or Fund 326).

Due to several factors, including the difficulty of filling the moderate-income units, particularly the one-bedroom moderate units, the potential cost of moderate-income unit vacancies, and the substantially greater demand for very low—and low-income units, the initial lease-up of all 22 units took over one (1) year.

The 2024 Workforce Housing Report for Workforce Housing outlines the following:
•Overview and History of the Workforce Housing Development •Initial Lease-up
•Rents and Revenue
•Operations, Maintenance and Repairs
•Financial Analysis
In general, the Workforce Housing property is operating as expected, except for a few unforeseen repairs and expenses experienced in the first two (2) years of operations, issues relating to the management of a residential rental property, and the need to establish policies and protocols for managing invoice processing, late or non-payment of rent and utilities, and security deposit refunds.

A review of expenses vs. revenues shows that the asset is performing well financially.

Table 1 shows Revenue and Expenses since the property acquisition in 2022.

Table 1. Revenue and Expenses for Workforce Units Since Acquisition Fiscal
Year
21-22 21-22 22-23 22-23 23-24 23-24 24-25
(Revised)
Actual Budget Actual Budget Actual Budget Budget
Revenue $4,612 $0 $292,300 $677,458 $632,613 $625,640 $676,262 Expense $13,980 $0 $165,081 $329,136 $790,965 $386,187 $357,208 Net ($9,368) $0 $127,219 $348,322 ($158,352) $239,453 $319,054 The revenues have exceeded expenses for the Workforce Housing property except in FY 23-24. In FY 23-24, $557,446 was transferred from Fund 139 to Fund 326 CAARF to offset the property purchase price. The amount of the transfer is included as an expense.

Due to the City Council’s approval of the appropriation of a carryover for $16,047 for the electric vehicle charging project, FY 24-25 budget was revised to reflect the change.

While the property generates sufficient revenues to cover expenses, revenues were lower than budgeted in FY22-23 due to a later-than-anticipated full lease-up of the

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building. Leasing of the units started in September 2022, but due to reasons mentioned above, 22 units were not leased until November 2023 and have been fully occupied since then.

CEQA
The acceptance of the report is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.

FISCAL IMPACT
The report has no financial impact.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:

Attachment 1 – Workforce Housing Report 2024
Attachment 2 – Resolution 2022-42

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9 | P a g e
Prepared by the Community Development Department, November 2024City of Foster City Asset Management Report: Workforce Housing
2024

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2024 Workforce Housing Asset Management Report Foster City Community Development Department 1 | P a g e
Contents1. Executive Summary ..............................................................................................................22. Property Overview.................................................................................................................23. Initial Lease-up.....................................................................................................................44. Rents and Revenue ...............................................................................................................55. Financial Analysis .................................................................................................................66. Questions.............................................................................................................................0

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2024 Workforce Housing Asset Management Report Foster City Community Development Department 2 | P a g e

1. Executive SummaryOn August 10, 2022, the City purchased the newly constructed 22 units at 501 Pilgrim Drive from Summerhill Homes for $7 million. This property was acquired as part of the Below-Market Rate (BMR) inclusionary requirement for the Pilgrim-Triton development andorkforce Housing with priority employees, classroom teachers employed by San Mateo-Foster City School District, San Mateo Union High School District, or the San Mateo Community College District, and those who live and/or work in Foster City.The building was fully leased in November 2023. This report marks theAsset Management ReportWorkforce Housing property and provides. -up reports every three (3) years. 2. Property Overview The .7-acre, 22-unit Workforce Housing development consists of three three-story buildingsattached but with separate entrances. Fig 1: Location Map showing Workforce Housing

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2024 Workforce Housing Asset Management Report Foster City Community Development Department 3 | P a g e
Table 1. Workforce Housing Property BuildingsBuildingNumber of units Building OneFive (5) units Building Two11 unitsBuilding ThreeSix(6) unitsThe development consists of one-bedroom units, one-bedroom units with dens, and two-bedroom units. Two ground- Parking and Electric Vehicle Charging The property includes 22 parking spaces, consisting of nine (9) garage spaces and 13 outdoor spaces in a designated parking lot. Two (2) of the garage spaces are ADA spaces, and one (1) of the outdoor lot spaces is a van-accessible ADA space. There are also six (6) public parking spaces along Pilgrim Drive and 15 public parking spaces along Triton Drive that can be used for guest parking. The site also has two (2) electric vehicle charging spaces, one (1) of which is ADA-van-accessible, on Triton Drive. The electric vehicle charging stations were installed in 2024. Amenities and Location The property is located .4 miles from City Hall, about a 10-minute walk between Triton Drive and Pilgrim Drive. Amenities: all units include a deck, a washer and dryer, and LG appliances. The property includes a shared bicycle storage room and a shared barbecue area. A public park adjacent to the development was built as part of the Pilgrim-Triton development. Property Management The City competitively bid the property management contract in 2021 and selected HIP Housing agreement includes set-up, initial lease-ups, move-ins, these tasks include $13,200 for Set-up and lease-up fees and $23,760 for Compliance and property management. There is an additional $20,000 for repairs and maintenance. The property includes eight (8) workforce units that are rent-restricted but not income-restricted and 14 below-market-rate (BMR) units that are rent-restricted and income-restricted. It also includes an on-site property manager, which is required by state law for developments of 15 or more units. Rents were set by the City Council in 2022 Table 2 DesignationSize# of UnitsCurrent Rent(50% AMI)1-Bed 3$1,400 2-Bed1$1,800Low Income1-Bed 4$2,200Low Income2-Bed1$2,800Moderate Income (120% AMI) 2-Bed5$3,100Workforce 1-Bed 2$2,200

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2024 Workforce Housing Asset Management Report Foster City Community Development Department 4 | P a g e
Workforce Low 1-Bed-Den3$2,5001-Bed-Den1$1,600Workforce Low2-Bed2$2,800The City pays for sewer, common area electricity, and common area water usage. Tenants pay for their share of trash collection, water usage, and water heating through Utility Billing Systems (UBS), a third-party utility billing company. UBS then reimburses the City for these costs, with a service charge deduction, and charges a utility billing service fee paid for by the tenants. Tenants also pay their own accounts for internet, telephone, television, and electricity usage. Preferences The property has the preferences listed below in Table 3. The current tenant mix (5) city employees, three (3) and two (2) teachers. Table 3. Preferences for 501 Pilgrim Drive Preference Applies toPreferenceNumber of Tenants 1 Workforce OnlyMobility-related disability for units 103 and 104 only22 Workforce OnlyFirst Responder City Employee 33 Workforce & BMRs Other City Employee24 Workforce & BMRs Classroom teacher in the Foster City Elementary School District, the Foster City-San Mateo High School District or the San Mateo County Community College District25 Workforce & BMRs Those who live and work in Foster City at the time of their application66 Workforce & BMRs Those who live in Foster City at the time of their application 37 Workforce & BMRs Those who work in Foster City at the time of their application08 Workforce & BMRs 43. Initial Lease-up The initial lease-up of the building took over one (1) year due to several factors. eight units by the end of 2022. , then re-opened the lottery in early 2023 and November 2023. Moderate-income units proved challenging to rent due to the higher rental rate, The waitlist now has over 1,000 names city employees (for BMR units).

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2024 Workforce Housing Asset Management Report Foster City Community Development Department 5 | P a g e

4. Rents and Revenue The property's rents, which were set by the City Council in 2022, have remained constant at the current rates. The rent roll is currently $52,200 per month and $626,400 per year at full occupancy. Table 4 below along with the maximum chargeable rent. Table 4 Designation SizeMaximum Chargeable Rent (2024)Current Rent (50% AMI)1-Bed $1,728$1,400 2-Bed$1,907$1,800 Low Income1-Bed $2,903$2,200 Low Income2-Bed$3,229$2,800 Moderate Income (120% AMI) 2-Bed$4,322$3,100 Workforce 1-Bed $4,925$2,200 Workforce 1-Bed-Den$4,925$2,500 1-Bed-Den$4,925$1,600 Workforce Low 2-Bed$5,162$2,800 In addition to rent revenue, the City receives proceeds from the following sources from the Workforce Housing property: Utility reimbursements from Utility Billing Services—The third-party services provider bills tenants for water usage for their units, trash collection, and gas water heating. UBS collects these funds and reimburses the City monthly. The amount varies from month to month depending on water usage and heating but averages about $2,200 per month. These revenues Key replacements—If a tenant loses their keys, the City charges $100 for a digital fob and $15 for a traditional key. related to purchasing keys. Late fees—The City charges $30 a month for late rent payments and $50 a month for late payment plan payments. The City does not charge for late utility payments. However, the Utility Billing System charges a $10 late fee but does not pass this on to the City. especially since the building has been fully leased for about one (1) year, several factors have impacted revenues, including: Several tenants are delinquent in paying utility bills through Utility Billing Systems. As of September 18, 2024, tenants owe a balance of $4,554 with $2,312 late 30 to 90 days or more. One tenant alone owed nearly $1,800 of the balance owed. As of October 21, 2024, the balance owed was down to $3,683.96 with $1,917.25 less than 30 days overdue and one tenant owing $1920.79. One (1) tenant has a balance owed of more than $4,000 in rent and is on a payment plan.

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2024 Workforce Housing Asset Management Report Foster City Community Development Department 6 | P a g e
Units vacated after occupancy tend to have a turnover period of about 60 days. While this is 5. Financial AnalysisWorkforce Housing Fund (Fund 139) is a Special Revenue fund in the City’s dedicated to managing expenses and revenues related to the operation and management of Workforce housing. Below is a snapshot of the revenues and expenses. On April 18, 2022, the City Council, via Resolution 2022-from the Workforce Housing to the Capital Asset and Acquisition Replacement Fund (CAARF or Fund 326). -2025, the City has budgeted $357,208 for operating expenses for the Workforce Housing property. Full occupancy revenue is projected at $626,400, or $595,080, with a 5% anticipated vacancy rate. between operating cost and revenue provides for the replenishment of CAARF . Since the building was fully occupied in November 2023, we have experienced four (4) move-outs, all of which have been or are expected to be A review of expenses vs. revenues shows that the Workforce Housing is performing and include contingencies While revenues have exceeded expenses yearly since acquisition, maintenance and repair expenses have been higher than planned. As discussed in the previous section, the City has paid several unforeseen expenses associated with property operations, including , plumbing, appliance replacements, early repainting, and so on. Now that the property has been fully leased and operational for one (1) s expenses, repairs, and maintenance and will modify the FY25-26 budget to accommodate line-item adjustments based on actual experience in prior years. The City pays for sewer, common area electricity, and common area water usage. Tenants pay for their share of trash collection, water usage, and water heating through a third-party utility billing company that reimburses the City for these costs and charges a utility billing fee that is paid for by the tenants. Figure 1 shows the Annual Budget Appropriation for the Workforce Housing property. Figures 2 and 3 below present a comparison of revenues and expenditures since the acquisition. In each year, revenues exceed expenses, except FY 23-24, in which $557,446 was transferred to CAARF towards replenishment of the purchase price for the building. This amount is shown as an expense and comprises the net revenue generated by the asset. For the current FY , the revised budget includes carryover of $16,047 for the installation of the two (2) electric vehicle charging stations, which have now been completed in the prior year.

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2024 Workforce Housing Asset Management Report Foster City Community Development Department 7 | P a g e
While expenses were welllate 2023, so revenues were less than projected. Stalso determined that a substantial contingency was (2) years of full occupancy to account for issues and anomalies with building systems and other unforeseen expenses, as summarized above.While revenues were under budget due to the lengthy lease-up process, the building has been fully occupied since November 2023, except for turnovers. For the 2024-revenues to be closer to budget. The budget includes a 5% vacancy rate. There have been four turnovers to date. In FY 23-24 and FY24-originally budgeted $386,187 and $341,161 in Fund 139, respectively, as shown in (see Fig. 1 below), corresponding to numerous budget line items, including utilities, repairs, and maintenance, contracts, equipment replacement charges, insurance, pest control, and other costs related to operations. Following the City Council’s approval of a budget carryover for$16,047 for the electric vehicle charging project, FY 2024-25 budget was revised (see Figures 2 and 3).Fig 1. Annual Budget Appropriation for FY 24-25

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2024 Workforce Housing Asset Management Report Foster City Community Development Department 1 | P a g e
Fig. 3 Budget vs. Actual ($) Workforce Housing - Fund 139 Revenue & Expenses2021-22 Actual2021-22 Budget2022-23 Actual2022-23 Budget2023-24 Actual2023-24 Budget2024-25 ActualYTD2024-25 Revised BudgetRevenues4,6120292,300677,458632,613625,640207,647676,262USE OF MONEY & PROPERTY 1120 284,360 615,110 611,213601,540 200,996 637,451 INTEREST - INVESTMENT 1120 3,762 601 19,3152,040 0 5,900 RENTS AND CONCESSIONS00286,288624,433600,298599,500203,096631,551Rent Discount-Manager's Unit Rent Discount 00 -5,690 -9,924 -8,4000 -2,100 0 OTHER REVENUES 00 7,940 62,348 21,40024,100 6,651 38,811 NSF CHECK PROCESSING000075000MISCELLANEOUS REVENUES007,94062,34821,32524,1006,65138,811OTHER FINANCING SOURCES 4,5000 0 0 00 0 0 Expenses13,9800165,081329,136790,965386,18744,898357,208EMPLOYEE SERVICES 00 8,321 18,073 16,50818,977 6,809 21,883 SUPPLIES & OTHER SERVICES13,9800134,352255,470194,634277,46816,089243,939MAINT-FACILITY & EQUIP006,77114,52076314,52061914,520UTILITIES & COMMUNICATION0051,782106,99365,78673,12013,24575,300CONTRACT, PROF SPEC SVCS13,980071,129103,71595,448154,6981,900118,841MISC EXPENSE00050001,00001,000LANDSCAPE & PEST CONTROL004,67028,50014,40029,20032529,200POSSESSORY INT PPTY TAX0001,24218,2374,93005,078INTERNAL SERVICE FUNDS0022,40855,59322,37789,74222,00091,386COMPENSATED ABSENCES0040840837737700EQUIP REPLACEMENT CHARGES0022,00022,00022,00022,00022,00022,000INSURANCE & OTHER COSTS00033,185067,365069,386TRANSFER OUTto CAARF (Fund 326)0000557,446000Revenue Less Expenses-9,3680127,219348,322-158,352239,453162,749319,054

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Utilities As noted earlier, the City pays for nine (9) separate utilities monthly. Budgeting for tenant usage prior to full occupancy proved challenging, and it took several months before the digital water usage metering system was operational. However, now that the property has been fully occupied for one year and communication with the on-hours following rainfall to comply with City policies, utility budgeting is easier to manage. Equipment Replacement ReserveThe City utilizes a separate special revenue equipment replacement fund (Fund 140) for the replacement and acquisition of equipment for Workforce Housing needs. Each year, Fund 139 expenditures include $22,000 going toward Fund 140 to establish a reserve to pay for replacing building systems and equipment as the building ages. Examples include future replacements of windows, doors, garage doors, the roof, carpet, appliances, and cabinetry. The City may need to access this fund earlier than planned due to warping cabinets in one unit and potential common area carpet replacement sooner. While this is not an issue nowanalysis of the reserve fund methodology as part of the FY 2025-26 budget analysis. Insurance and other costs While the property’s insurance is part of the City’s asset insurance and does not require a separate expense, in the budget each year to provide an emergency fund for unforeseen expenses. With full occupancy and two (2) years of history of repairs, maintenance, and system testing, , notably for invoice processing. In FY 23-24, for ook approximately 30 review, approve, and process before submitting to Finance. This amounts to a total of nearly 85 hours per year, with a substantial number of invoices submitted a have , including requiring invoices to be submitted within 30 days of service and for June invoices by July 15 of each year. All invoices are now emailed to a dedicated email account for workforce housing. budget. In addition to processing invoices (from Community Development Department and Finance Department), the Housing Coordinator works on approves expenses and bids for work, handles issues with tenants who have not paid rent, processes security deposit returns, manages special projects, such as bidding, purchase, and installation of the inspections with the Building Divisionapproves the annual report submitted by the property manager, ensures that the covenant is adhered to, and responds to inquiries from tenants or members of the public. 6. Questions Please direct any questions regarding this report to [email protected]. The next report will be issued in 2025 unless the City Council requests an interim report.

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RESOLUTION NO. 2022-42

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY PROVIDING

DIRECTION REGARDING OPERATIONAL ASPECTS OF THE WORKFORCE

HOUSING PROJECT AND APPROVING AMENDED REVENUES AND
EXPENDITURES BUDGET FOR THE REMAINDER OF FY 2021 -2022 FOR THE WORKFORCE HOUSING FUND (FUND 139)

CITY OF FOSTER CITY

WHEREAS, the Development Agreement between the City of Foster City and Pilgrim Triton Phase III FC, LP, dated October 31, 2018, includes provisions for the development by Pilgrim Triton Phase III FC, LP consisting of twenty -two (22) rental housing units with affordability restrictions at various affordable rents (“Workforce Housing Project”), and also provides the City the option to purchase the Workforce Housing Project; and

WHEREAS, the City Council adopted Resolution No. 2019-72 at its July 1, 2019 regular meeting, exercising its option to purchase the Workforce Housing Project; and

WHEREAS, the Affordable Housing Regulatory Agreement for the Workforce Housing Project recorded on January 15, 2021, requires the 22 units to be made available at rents affordable to households of very low-, low-, moderate-, and 130% of Area Median Income; and

WHEREAS, on March 7, 2022 , the City Council adopted Resolution No. 2022 -22 to approve a revenue and expenditure budge t for the remainder of FY 2021 -22 and authorized the Finance Director to make the corresponding budget appropriations in the Workforce Housing Fund 139; now, therefore, be it

RESOLVED, that the City Council of the City of Foster City does hereby direct that City staff implement the following measures with respect to the Workforce Housing Project:

1. Acknowledge that a HIP Housing Affordable Ventures (HHAV) employee will occupy one (1) of the eight (8) Workforce housing units, consistent with State requirements for an on-site management employee;

2. For the seven (7) remaining Workforce housing units, set the rents as affordable to low-income households, while acknowledging that these units are not restricted to occupancy by low income households pursuant to the Affordable Housing Regulatory Agreement.

3. Align the application of preference categories for the two (2) fully accessible Workforce housing units with a new preference category of “persons with mobility- related disabilities” as the first preference category for those two (2) Workforce units, only, followed by the other preference categories as previously approved for DocuSign Envelope ID: 3138CFF0-4D37-434A-9709-8A28C3B31D1F

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City Resolution No. 2022-42
the Workforce housing units.

4. Direct HHAV to advertise the availability of applications for the Workforce housing units, to create a separate waitlist application and lottery process for the seven (7) Workforce housing units using the preference categories , as modified herein, for the Workforce units and invite those who applied for the BMR unit waitlist to apply; and

5. Direct staff to allocate the net income from the Workforce Project to repay the Capital Asset and Acquisition Replacement Fund (CAARF); and, be it

FURTHER RESOLVED, that the City Council of the City of Foster City does hereby approve an amendment to the revenue and expenditure budget for the remainder of FY 2021-2022 and authorize the Finance Director to make the corresponding budget appropriations in the Workforce Housing Fund 139, as attached in Exhibit A.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 18th day of April, 2022, by the following vote:

AYES: Councilmembers Froomin, Gehani, Hindi, and Mayor Awasthi NOES: Councilmember Sullivan

ABSENT: None

ABSTAIN: None

RICHA AWASTHI, MAYOR

ATTEST:

PRISCILLA SCHAUS, CITY CLERK
BY: YELENA CAPPELLO, DEPUTY CITY CLERK

DocuSign Envelope ID: 3138CFF0-4D37-434A-9709-8A28C3B31D1F

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Draft 5-Year Operating Budget 2021-2026
501 Pilgrim Drive, Foster City
Line
Item
Account Description 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2021-2027 Total
Comments/Assumptions/Source of Data
First fiscal year is for May, June only for 2022 (.167) 1 Rent Revenue - Gross Potential 104,200$ 623,952$ 642,671$ 661,951$ 681,809$ 702,263$ 3,416,846$ See Rent Schedule sheet; 3% increase per year. Incorporates redesignations for 5 moderate one-bedrooms to low and very low income (2 very low and 3 low) and recommended redesignation of workforce units to low income. Rent schedule is from City with HHAV input.
2 Tenant Assistance Payments -$ -$ -$ -$ -$ -$ -$ No rental assistance. 3 Management unit 3,206$ 19,200$ 19,776$ 20,369$ 20,980$ 21,610$ 105,142$ Does not include rent reduction for onsite unit - see administrative expenses for discount. Assumes manager unit will be occupied in May.
4 Total 107,406$ 643,152$ 662,447$ 682,320$ 702,790$ 723,873$ 3,521,988$ Vacany
5 Vacancy (5,210.00)$ (18,719)$ (19,280)$ (19,859)$ (20,454)$ (21,068)$ (104,589)$ Assumes 5% vacancy rate in year one; 3% in subsequent years; excludes management unit.
6 Total (5,210)$ (18,719)$ (19,280)$ (19,859)$ (20,454)$ (21,068)$ (104,589)$ Other Revenue
7 Tenant Charges - Late Fees 60$ 720$ 720$ 720$ 720$ 720$ 3,660$ Late fees; assumes $30 late fee for 10%, or 2 units, per month; no increase in fee over 5 years. Estimated by HHAV. First fisca year assumes two late fees in June only.
8 Tenant Charges - Additional or
Replacement Key Fobs; Cardkeys
1,200$ 200$ 200$ 200$ 200$ 200$ 2,200$ 2 cardkeys/fobs included for each unit; additionals cost $100; replacement of lost keycard or fob is $100. Assumes 44 included; 10 additional; 2 replacement per year.Estimated by HHAV. 9 Tenant Charges -
Cleaning/Damage/Repair to Units
-$ 500$ 515$ 530$ 546$ 563$ 2,655$ Tenant damages; nominal amount per year; 3% increase; $0 in first fiscal year. Estimated by HHAV.
10 Credit Reporting Fees 1,680$ 70$ 70$ 70$ 70$ 70$ 2,030$ Assumes total adult occupancy of property of 48 adults @ $35 per application for lease up; assumes 2 applications each year thereafter.Estimated by HHAV.
11 Tenant Utility Charges through Ratio
Utility Billing System (RUBS)
14,304$ 60,816$ 62,640$ 64,520$ 66,455$ 68,449$ 337,184$ For water, gas, trash; see Expenses below for each line item. 12 Interest earned 3$ 42$ 65$ 88$ 112$ 159$ 469$ Reserve accounts interest @ .1%. See Reserve Analysis. City proforma used 2%; HHAV recommends .1% to be conservative.

Estimated by HHAV.
13 Interest earned on deposits 100$ 601$ 619$ 637$ 657$ 676$ 3,290$ Per City's proforma. These values were not estimated by HHAV. 14 Total 17,348$ 62,949$ 64,829$ 66,766$ 68,760$ 70,837$ 351,489$ 15 Gross Margin 119,544$ 687,382$ 707,995$ 729,227$ 751,096$ 773,643$ 3,768,887$

REVENUE - WITH RECOMMENDED REVISIONS
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2. City Council Approved Changes 3/7/2022 PLUS RECOMMENDED REDESIGNATION OF WORKFORCE UNITS Color Code: Blue = Revenue; Orange = Expense; Pink = from City Proforma or data provided by City

REVENUE - WITH RECOMMENDED REVISIONS

EXPENSE
HHAV Management Fees (paid by City of Foster City to HHAV per contract 16 HHAV Lease-up fees 10,500$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 15,500$ Leasing fee for move-ins @$500 per move in; 21 units; assumes 2 move ins/turnovers in subsequent years; per contract between City and HHAV.
17 HHAV Unit Set up fee (one time) 2,100$ -$ -$ -$ -$ 2,100$ $100 per unit, except manager's unit; one time fee; per contract between City and HHAV.
18 HHAV Management Fees 11,340$ 22,680$ 24,473$ 25,207$ 25,963$ 26,742$ 136,405$ $90 per door per month, except for manager's unit; January through June in FY 21-22. Per contract between City and HHAV. 19 Total 23,940$ 23,680$ 25,473$ 26,207$ 26,963$ 27,742$ 154,005$ City Administrative Expenses First fiscal year is for May and June only 20 Miscellaneous Admin. Epenses 84$ 500$ 515$ 530$ 546$ 563$ 2,738$ Placeholder estimate only. Amount to be determined by City of Foster City if applicable. Estimated by HHAV.
21 City Staff Salaries and Benefits 3,266$ 12,782$ 13,165$ 13,560$ 13,967$ 14,386$ 71,128$ See Foster City Employee Costs Sheet. Not estimated by HHAV. 22 Manager's Unit Rent Discount (1,657)$ (9,924)$ (10,222)$ (10,528)$ (10,844)$ (11,170)$ (54,345)$ Rent discount; 3% increase per year - see Rent Schedule 23 Total 1,692$ 3,358$ 3,459$ 3,563$ 3,669$ 3,780$ 19,520$ Property Utility Expenses - paid by City to Utility Provider First fiscal year is for April, May, June only for 2022 (.25) 24 Common Area Electricity 4,500$ 18,000$ 18,900$ 19,845$ 20,837$ 21,879$ 103,961$ Common areas only; 5% increase per year; tenants have their own meters; not billed to tenants through RUBS. Assumption is $1500 per month for FY 2022-2023. Review after 3 months of actuals.

Estimated by HHAV.
25 Gas - water heating only 672$ 2,688$ 2,769$ 2,852$ 2,937$ 3,025$ 14,943$ 9 one-beds; 4 1-bed plus den (treated as 2-bed); 9 2-beds: $9 for 1- bed; $11 for 2-beds; 3% increase per year; recaptured through RUBS. Amounts are based on 2021 Utility Allowance Schedule.

Reviewafter 3 months of actuals.
26 Water - landscaping common area
plus tenant usage
11,850$ 51,000$ 52,530$ 54,106$ 55,729$ 57,401$ 282,616$ Estimated at $125 per unit per month recaptured through RUBS (includes washer use); 3% increase in subsequent years; recaptured through RUBS; common area: $1500 per month; 3% increase per year. Review in July 2022 after 3 months of actuals.

Landscaping is not billed to tenants through RUBS.
27 Trash Removal 1,782$ 7,128$ 7,342$ 7,562$ 7,789$ 8,023$ 39,626$ $27 per unit per month recaptured through RUBS; 3% increase in subsequent years; recaptured through RUBS; common area: $1000 per month; 3% increase per year. Amount is from 2021 UA Schedule. Review after 3 months of actuals.

General notes on expenses: 2021-2022 assumes .167 for expenses (2 months - May, June) in year one except as noted. Many of the expenses will start before tenants move in so an extra month in the first fiscal year is included.
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2. City Council Approved Changes 3/7/2022 PLUS RECOMMENDED REDESIGNATION OF WORKFORCE UNITS Color Code: Blue = Revenue; Orange = Expense; Pink = from City Proforma or data provided by City REVENUE - WITH RECOMMENDED REVISIONS 28 Sewer 6,166$ 28,177$ 30,994$ 31,614$ 32,208$ 32,208$ 161,366$ Assumes $93.42 per unit in FY 2021-22, $106.73 in 22-23, $117.40 in 23-24, $119.75 in 24-25 and $122 (estimated) for 25-26 per City of Foster City Wastewater Rate sheet. Budgeted for 22 units. Review after 3 months of actuals.
29 Total 24,970$ 106,993$ 112,534$ 115,979$ 119,501$ 122,536$ 602,512$ HHAV Property Operating & Maintenance Expenses - Paid by City to HHAV First fiscal year is for May, June only (.167) 30 Maintenance Technician and Property
Manager Salaries and Benefits
13,786$ 33,376$ 34,377$ 35,409$ 36,471$ 37,565$ 190,984$ See HHAV Employee Costs Sheet 31 Legal Expenses -$ 1,300$ 1,300$ 1,300$ 1,300$ 1,300$ 6,500$ Est. one eviction or other legal advice each year except first fiscal year; HHAV to invoice city.
32 Credit/Background Checks 1,500$ 60$ 60$ 60$ 60$ 60$ 1,800$ Actual cost of credit/background checks - estimate 2 per year; HHAV to invoice city. Assumes 50 adults for 2021-22.
33 Miscellaneous Operating and
Maintenance
167$ 1,000$ 1,030$ 1,061$ 1,093$ 1,126$ 5,476$ Review after 3 months of actuals. 34 Technology - property management
software
257$ 1,540$ 1,586$ 1,634$ 1,683$ 1,733$ 8,433$ Yardi property management software fees and support services. 35 Repairs and Maintenance - HHAV time
billed to project
2,425$ 14,520$ 14,956$ 15,404$ 15,866$ 16,342$ 79,513$ See Repairs & Maintenance Rate Sheet; if HHAV needs to call a 3rd party vendor; bills will be paid directly to third party. See line item 54. Review in July 2022 after 3 months of actuals. 36 Materials and Supplies - HHAV 915$ 5,480$ 5,644$ 5,814$ 5,988$ 6,168$ 30,009$ See Repairs & Maintenance Rate Sheet. Billed at no markup.Review in July 2022 after 3 months of actuals.
37 Total 18,135$ 57,276$ 53,309$ 54,867$ 56,473$ 58,126$ 298,186$ Other Property Operating & Maintenance Expenses - Paid by City of Foster City to Contractors First fiscal year is for May, June only for (.167) 38 RUBS 3rd party management fees 341$ 1,056$ 1,088$ 1,120$ 1,154$ 1,189$ 5,948$ $4 per month per door monthly fee plus $7.50 per door set up fee (one time). Provider is National Utility Billing Systems; have quote.

Assumes 3 months only in FY 2021-22. May choose to do in house for first year.
39 Pest Control 418$ 2,500$ 2,575$ 2,652$ 2,732$ 2,814$ 13,690$ $2500 per year; 3% increase in subsequent years; estimate based on similar sized properties. Review after 3 months of actuals.

Estimated by HHAV.
40 Security-Fire Alarm Monitoring 1,603$ 9,600$ 9,888$ 10,185$ 10,490$ 10,805$ 52,571$ $800 per month; 3% increase in subsequent years; estimate based on similar sized properties. Review after 3 months of actuals.

Estimated by HHAV.
41 Landscape Contract 4,342$ 26,000$ 26,780$ 27,583$ 28,411$ 29,263$ 142,380$ $500 per week; FY 21-22 is for 3/1-6/30 only; 3% increase in subsequent years; check with City regarding common areas shared with condos; review after 3 months of actuals. Estimated by HHAV. 42 Property Telephone Line Expense for
Fire Alarm
100$ 103$ 106$ 109$ 113$ 116$ 647$ one phone line for fire alarm panel/monitoring; review after 3 months of actuals.
43 Repairs - Outside Contractors 1,102$ 6,600$ 6,798$ 7,002$ 7,212$ 7,428$ 36,142$ $300 per unit per year; 3% increase in subsequent years; Review after 3 months of actuals. Estimated by HHAV.
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2. City Council Approved Changes 3/7/2022 PLUS RECOMMENDED REDESIGNATION OF WORKFORCE UNITS Color Code: Blue = Revenue; Orange = Expense; Pink = from City Proforma or data provided by City REVENUE - WITH RECOMMENDED REVISIONS 44 Miscellaneous Operating and Maintenance
167$ 1,000$ 1,030$ 1,061$ 1,093$ 1,126$ 5,476$ Contingency; review after one year of actuals.Estimated by HHAV. 45 Total 8,073$ 46,859$ 48,265$ 49,713$ 51,204$ 52,740$ 256,854$ Property Taxes & Insurance Expense - paid by the City of Foster City 46 Real Estate Taxes 1,218$ 1,242$ 1,267$ 1,293$ 1,319$ 1,345$ 7,684$ Possessory Interest Tax: 1.169% of annual rent then 2%/yr per 2/1/22 email 47 Franchise Tax -$ -$ -$ -$ -$ -$ -$ N/A 48 Misc. Tax, License & Permits -$ -$ -$ -$ -$ -$ -$ N/a 49 Property and Liability Insurance 8,055$ 33,185$ 34,180$ 35,205$ 36,262$ 37,349$ 184,236$ Alliant estimates premium for the new location is $32,218. Quote provided to City. Begins April 2022 (.25 in first fiscal year) 50 Total 9,273$ 34,427$ 35,447$ 36,498$ 37,580$ 38,694$ 191,920$ 41 TOTAL OPERATING EXPENSES 86,083$ 272,592$ 278,487$ 286,827$ 295,390$ 303,618$ 1,522,997$ 52 NET ORDINARY INCOME 33,461$ 414,790$ 429,509$ 442,400$ 455,705$ 470,024$ 2,245,890$ Financial Expense
53 City's financial expense -$ -$ To be determined by City of Foster City if applicable 54 Total -$ -$ -$ -$ -$ -$ Replacement Reserve
55 Replacement Reserve Expense -$ -$ -$ -$ -$ 22,557$ 22,557$ See separate Reserve Analysis; expenses start in Year 5; some data provided by Contractor; remainder estimated by HHAV. 56 Replacement Reserve Fund - initial
contribution
20,000$ 20,000$ Per City Staff Meeting November 21, 2021 57 Replacement Reserve Fund - annual
Contribution
-$ 22,000$ 22,660$ 23,340$ 24,040$ 24,761$ 116,801$ $22,000 per year contribution, 3% increase per year - See separate Reserve Analysis. $22,000 annual contribution is from City's proforma. Review annually to ensure sufficient reserves. 58 Total 20,000$ 22,000$ 22,660$ 23,340$ 24,040$ 47,318$ 159,358$ 59 TOTAL OTHER EXPENSE 20,000$ 22,000$ 22,660$ 23,340$ 24,040$ 47,318$ 159,358$ 60 TOTAL EXPENSE 106,083$ 294,592$ 301,147$ 310,166$ 319,430$ 350,936$ 1,682,355$ 61 CASH FLOW 13,461$ 392,790$ 406,849$ 419,061$ 431,665$ 422,706$ 2,086,532$

OTHER EXPENSES - FINANCIAL & REPLACEMENT RESERVE
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DATE: November 18, 2024

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Sofia Mangalam, Community Development Director
Leslie Carmichael, Consulting Planner
DEPARTMENT: Community Development
SUBJECT: AMENDING VARIOUS CHAPTERS WITHIN TITLE 17, “ZONING”

OF THE FOSTER CITY MUNICIPAL CODE, TO IMPLEMENT
SEVERAL PROGRAMS OF THE 2023-2031 HOUSING ELEMENT

RECOMMENDATION
It is recommended that the City Council introduce by title only and waive further reading of the Ordinance amending various Chapters within Title 17, “Zoning” of the Foster City Municipal Code, to implement RHNA 6 Housing Element for the 2023-2031 planning period and comply with recent changes in state law and finding that the amendments are within the scope of the Environmental Impact Report prepared under the California Environmental Quality Act (CEQA) for the Housing and Safety Elements Update (SCH#2022010509.)

EXECUTIVE SUMMARY
The Housing Element is an integral part of the Foster City General Plan that identifies the community’s housing needs, states the community’s goals and objectives regarding housing production, rehabilitation, preservation, and conservation to meet those needs, and defines the policies and programs. The chapter containing Housing Goals, Policies, and Programs forms the housing policy roadmap for the City and describes the implementation measures that the City needs to undertake in the planning period 2023-

31. These goals, policies, and programs aim to provide additional housing in a way that

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is balanced with the community’s desires to retain the aspects of Foster City that make it a great place to live, work, and play.

The Housing Element Programs include the City’s commitment to timeframes for implementation. The Annual Progress Report (APR) to the California Department of Housing and Community Development (HCD), due by April 1 of each year, reports on progress in the implementation of these Programs for the previous calendar year.

To follow through on these commitments in a timely manner, staff is recommending code amendments for the implementation of several Housing Element programs for the year 2024, including H-C-1-b Amend Percentage of BMR Units in Conversions, H-D-6-b Minimize Zoning Constraints, H-D-4-f Objective Design Standards for ADUs, H-D-6-c Amend Parking Requirements, H-E-9-a Family Friendly Housing, H-E-9-b Small Housing Units, H-F-2-e Low Barrier Navigation Centers, and H-F-3-b Supportive Housing. These programs discussed in detail in the Analysis section below warrant revisions to Foster City Municipal Code (FCMC) Chapters 17.04 Definitions, 17.16 R-T Townhouse Residence District, 17.18 R-3 Medium Density Multiple-Family Residence District, 17.20 R-4 High-Density Multiple-Family Residence District, 17.28 C-M Commercial Mix District,

17.32 Public Facilities District, 17.62 Off-Street Parking Regulations, 17.76 Conversion Regulations, 17.78 Accessory Dwelling Units, and 17.82 Emergency Shelters, Low- Barrier Navigation Centers, and Supportive Housing.

On October 17, 2024, the City’s Planning Commission voted 3-2-0, approving resolution P-23-24, recommending City Council adoption of text amendments to Title 17, Zoning, of the Foster City Municipal Code to implement the RHNA 6 Housing Element for the 2023-2031 planning period and comply with recent changes in State Law and finding that the amendments are within the scope of the Environmental Impact Report prepared under the California Environmental Quality Act (CEQA) for the Housing and Safety Elements Update (SCH#2022010509) with proposed changes to Exhibit A, removing the word “materials” for Attached and Conversion ADUs in Chapter 17.78, and amend Option B for Exhibit H eliminating lifetime lease provisions and with proposed changes to relocation assistance to three months for all non-purchasing tenants (see Attachment 2 for Planning Commission Resolution P-23-24).

BACKGROUND
Government Code Section 65400 requires each jurisdiction to prepare an APR on its status and progress in implementing its housing element. Each jurisdiction’s APR must be submitted to HCD and OPR by April 1 of each year (covering the previous calendar year ). Year 2024 is the second year of implementation of the Housing Element 2023-31.

The report to HCD is due on April 1, 2025.

A few Housing Element programs noted above warrant amendments to various FCMC Chapters of Title 17, Zoning. The implementation of these programs was previously

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discussed with the Land Use Subcommittee and Planning Commission as discussed below.

Previous Public Meetings

1. Land Use Subcommittee Meeting – September 11, 2024
The Land Use Subcommittee of the City Council discussed the proposed amendments in this staff report at their September 11, 2024, meeting (see draft meeting minutes, Attachment 3).

2. Planning Commission Study Session – September 19, 2024 The Planning Commission held a Study Session on September 19, 2024, to discuss the proposed amendments. The Commission’s comments are provided in the Analysis section of this report (for meeting minutes, see this link).

3. Planning Commission Public Hearing – October 17, 2024 The Planning Commission held a public hearing on October 17, 2024, to discuss the proposed amendments to various Chapters of Title 17, Zoning, of FCMC (for draft meeting minutes, see this link).

ANALYSIS
Housing Element programs and corresponding amendments to Title 17 H-C-1-b Amend Percentage of BMR Units in Conversions. Review the existing conversion regulations in Chapter 17.76 of the Municipal Code to ensure conformance with applicable state law pertaining to the percentage of converted units required to be set aside for qualified lower- and moderate-income owners.

Existing Regulations: The City’s regulations for apartment conversions to condominiums are contained in FCMC Chapter 17.76, adopted in 1981. In addition, the California Government Code includes regulations specific to condominium conversions intended to protect both existing tenants and potential buyers.

Staff reviewed the chapter's provisions and noted a few sections that need amendments to implement the Housing Element program, H-C-1-b.

1. Percentage of BMR Units in Conversion.

Section 17.76.040.B.21.d Low and Moderate Income Housing of FCMC includes provisions for conversion requiring either
a. Ten percent (10%) of the units proposed for conversion shall be set aside for:
i. qualified low and moderate-income rental or purchase - or ii. to the city - or
iii. any such entity designated by the city - or

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b. One percent (1%) of the gross sales must be contributed to the city.

Staff comments: The inclusionary requirements noted above do not distinguish between low- and moderate-income housing requirements. It also does not include preference categories. Also, the requirement for one percent of the gross sales instead of ten percent of the units as low-and moderate-income is not comparable.

Proposed Amendments (Attachment 1, Exhibit H)
The proposed amendment to FCMC Section 17.76.040.B.21.d requires that moderate-income housing be provided in the same quantity and to the same standards as newly constructed dwelling units, as required by FCMC Chapter 17.90 Below Market Rate Inclusionary Housing Program. This addresses the need to specify the income levels since they are included in Chapter 17.90 and eliminates the one percent of gross sales as an option. The amendments also include preference categories because the units must be offered first to the existing tenants. The proposed preference categories prioritize the income-qualified tenants and then others as follows: 1) disabled tenants, 2) tenants age 62 or older, 3) tenants with minor children, 4) all other income-qualified existing tenants, and 5) all others in the preference order as established by the City to be applied citywide to below market rate units.

2. Lifetime leases for tenants 62 years and older or disabled.

The current language in FCMC Section 17.76.040.B.21.a requires a lifetime lease to be offered to seniors and handicapped persons.

Staff comments: Both the Land Use Subcommittee and some members of the Planning Commission were concerned that a lifetime lease could limit the future use/value of the units and also encourage discrimination by landlords contemplating a potential future conversion against tenants who would qualify for a lifetime lease.

Staff provided the Planning Commission with options to retain or eliminate the lifetime lease provisions. The Planning Commission voted 3-2 to eliminate the lifetime lease provisions and increase monetary relocation benefits for non-purchasing tenants from two to three months.

Proposed Amendments (Attachment 1, Exhibit H)
The proposed amendments to FCMC Section 17.76.040.B.21.a include eliminating provisions for lifetime leases and increases the relocation assistance to a minimum of three months’ rent to all non-purchasing tenants.

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3. Other Amendments
Since the adoption of FCMC Chapter 17.76 in 1981, the Housing Accountability Act contained in California Government Code Section 65589.5 has limited the ability of a local government to deny, reduce the density of, or make infeasible housing development projects based on anything other than objective design standards. Over the years, these provisions have been strengthened several times. The proposed amendments to FCMC Chapter 17.76 include changing the subjective requirements into objective requirements.

Proposed Amendments (Attachment 1, Exhibit H)
Other amendments to FCMC Chapter 17.76 include the following:
•Revised the definition of an “apartment” in FCMC Section 17.76.020 to exclude ADUs and JADUs on single-family properties to be consistent with the FCMC Chapter 17.78 Accessory Dwelling Units. The definition of “Apartment” would permit the duplexes located on Comet Drive to be converted into condominiums if the other requirements are met (Comet Drive is the only location in Foster City with R-2 zoning.) Other amendments in the section include revisions to definitions of Building Official, Director, Disabled (changed from Handicapped in the current code), Low Income, and Moderate Income.
•Remove the subjective provisions in Chapter 17.76, including:
oExisting FCMC Section 17.76.030.A.1 includes a subjective provisions for ranking batches of applicants for conversions of rental units. Proposed amendment includes using a lottery process to rank batch of applications based on objective criteria.
oExisting FCMC Section 17.76.030.C discusses prohibition of discrimination against prospective buyers with children. Under the current provisions the Planning Commission determines if a project that can “reasonably accommodate children” is prohibiting sales to households without children.

Proposed amendment includes a requirement that “in no case shall a project limit sale to households with children”.
•Eliminate the subjective language related to:
oExisting FCMC Section 17.76.040.B.5 allows the Planning Commission to waive the requirements for storage space “if it is deemed that sufficient storage space exists”. Proposed amendment eliminates the provision allowing waiver of requirements for storage space.
oExisting FCMC Section 17.76.040.B.6 directs the Planning Commission to “review the adequacy of open space in terms of area and privacy standards”. Proposed amendment requires that common open green area and private open green area be provided in conformance with FCMC Section 17.96.040.D. which establishes objective designs and development standards for open space for multi-family and residential

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mixed-use projects, open space for multi-family and residential mixed-use projects.
oExisting FCMC Section 17.76.040.B.7 regarding noise mitigation requires “appropriate site design and construction techniques”. Proposed amendment requires construction to comply with general plan and applicable ordinances and state codes related to sound transmission control.
oExisting FCMC Section 17.76.040.B.9 includes different standards for off- street parking than those in FCMC Chapter 17.62 and states that the “requirements may be lessened to the extent that the applicant establishes that additional parking is not needed.” The proposed amendment requires that off-street parking comply with FCMC Chapter 17.62, Off Street Parking Regulations..
oExisting FCMC Section 17.76.040.B.10 establishes standards for parking of trailers and recreational vehicles. The proposed amendment references existing objective standards established in FCMC Chapter 17.64, Vehicle and Recreational Vehicle Storage.
o FCMC Section 17.76.040.B.20, Relocation Displacement or Mitigation Plan, includes a requirement for a Developer to submit a Displacement Plan documenting the number of tenants who will be displaced and the availability of comparable replacement housing, including for special needs. The proposed amendment includes various provisions for Relocation Displacement or Mitigation Plan to address any special needs tenants and making it more objective.
o FCMC Section 17.76.040.C Waiver of Application Requirements discusses that the Director may waive or grant exceptions of any requirements of Section 17.76.040 “as appropriate”. The proposed amendment eliminates the subjective waiver of standards by the Director, leaving the ability to waive the submission of items if it is demonstrated that such information is not available and cannot be obtained.
---------------------------------------------------------------------------------------------------------------- H-D-4-f Objective Design Standards for Accessory Dwelling Units/Junior Accessory Dwelling Units (ADUs/JADUs). Develop and adopt objective design standards for ADUs.

Existing Regulations: California Government Code Section 66310 et seq. contains regulations governing what local jurisdictions can and cannot do to regulate ADUs and JADUs. These regulations are extensive and have changed several times in the last few years. These regulations provide the minimum requirements for what must be included in a local jurisdiction’s ADU ordinance. Foster City’s regulations for ADUs/JADUs are contained in Chapter 17.78 of Title 17, Zoning, of FCMC. .

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Staff comments: Staff evaluated a few objective design standards to retain architectural compatibility, tackle the issue of privacy and glare, etc. The Planning Commission further refined these to require consistent colors but not materials. The proposed amendments as follows:

Proposed Amendments (Attachment 1, Exhibit H)
•Attached ADUs. FCMC Section 17.78.060.C.5 Colors. An attached ADU or JADU shall use the same roof and exterior wall colors as the primary dwelling unit.

FCMC Section 17.78.060.C.6 Roof pitch and eaves. An attached ADU or JADU shall have the same roof pitch as the primary dwelling with the same eave details but may vary by up to 2/12 more or 2/12 less in roof pitch. •Detached ADUs. FCMC Section 17.78.060.D.5 Colors. Detached ADUs shall utilize the same exterior wall and roof colors as the primary dwelling unit. •Conversion ADUs. FCMC Section 17.78.060.E.4 Colors. Conversion ADUs shall utilize the same roof and exterior wall colors as the primary dwelling unit. •FCMC Section 17.78.060.F Additional Requirements. These requirements shall apply to all ADUs and JADUs on single-family lots.
•FCMC Section 17.78.060.F.3 Windows. Second-floor windows facing another residential property, less than ten feet (10’) from the property line, and larger than two (2) square feet shall include at least one of the following: a) have obscured glazing, or b) be offset from neighbor’s windows to maximize privacy, or c) include splayed windows to avoid direct views.
•FCMC Section 17.78.060.F.4 Second-floor balconies or decks. Second-floor balconies, decks, or roof-top terraces facing another residential property are prohibited.
•FCMC Section 17.78.060.F.5 Exterior lighting. All exterior lighting shall be mounted no higher than seven feet (7’) from grade and directed downwards. •Other amendments include adding new definitions to FCMC Section 17.78.040 for “Accessory Structure” and “Livable Space.”
H-D-4-a ADUs. Continue implementation of Chapter 17.78, Accessory Dwelling Units. Update the City’s ADU ordinance to comply with State laws by December 2023 and subsequently update the City’s regulations to comply with new state laws within six months of being effective.

State laws effective January 1, 2024: The amendments in the proposed Ordinance are required by the following bills:

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i. AB 976, approved by the Governor on October 11, 2023, enacted two substantive changes to ADU law: a. Authorizes a local agency to require rental terms that are 30 days or longer; and b. Prohibits a local agency from imposing an owner- occupancy requirement on any ADU (not to include JADUs)., approved by the Governor on October 11, 2023, enacted two substantive changes to ADU law: a.

Authorizes a local agency to require rental terms that are 30 days or longer; and b. Prohibits a local agency from imposing an owner-occupancy requirement on any ADU (not to include JADUs).
ii. AB 1332, approved in October of 2023, requires local agencies by January 1, 2025, to develop a program for the preapproval of ADU plans, whereby the local agency accepts ADU plan submissions for preapproval and approves or denies the preapproval applications.
iii. SB 477, approved by the Governor on March 26, 2024, moved the previous Government Codes Sections 65852.150, 65852.2, 65852.22, 65852.23, and 65852.26 outlining state law governing ADUs, into new Government Codes Sections 66310 through 66342. These new sections are designed to make it easier to read and navigate. No substantive changes to the government code were made with this Senate Bill.

State laws effective January 1, 2025: In September 2024, Governor Newsom signed three (3) more ADU bills ( AB 2533 and SB 1211) that will become effective on January 1, 2025.
iv. AB 2533 prohibits a local agency from denying a permit for an unpermitted ADU or JADU that was constructed before January 1, 2020, for the violations, including building standards or state or local standards, unless the local agency makes a finding that correcting the violation is necessary to comply with conditions that would otherwise deem a building substandard. It requires a local agency to inform the public about the provisions prohibiting denying a permit for an unpermitted or junior accessory dwelling unit and include a checklist of the conditions that deem a building substandard and to inform homeowners that, before submitting a permit application, the homeowner may obtain a confidential third-party code inspection from a licensed contractor. The bill prohibits a local agency from requiring a homeowner to pay impact fees or connection or capacity charges except under specified circumstances. By imposing additional duties on local agencies, the bill would impose a state-mandated local program. The bill authorizes an inspector from a local agency, upon receiving an application for a permit for a previously unpermitted accessory dwelling unit or junior accessory dwelling unit constructed before January 1, 2020, to inspect the unit for compliance with health and safety standards and provide recommendations to comply with health and safety standards. The bill prohibits the local agency from penalizing an applicant for having an unpermitted accessory dwelling unit and would require the local agency

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to approve necessary permits to correct noncompliance with health and safety standards.
v. SB 1211 increases the current restriction on the number of ADUs on a multifamily property that can be detached from 2 to up to 8, depending on the existing number of multifamily units on the site. SB 1211 also prohibits local governments from requiring the replacement of surface parking spaces when existing parking is repurposed for ADUs.

Staff comments: In order to bring the City’s ADU ordinance into compliance with the state laws noted above, staff has included the amendments to FCMC Chapter 17.78 Accessory Dwelling Units.

Proposed Amendments (Attachment 1, Exhibit I)
•FCMC Section 17.78.100 Other Provisions. Revised language to require deed restriction for JADUs, including prohibition of the sale of the JADU separate from the sale of the single-family residence; restrictions on the size and attributes of the JADU; and prohibitions on rentals less than thirty consecutive days. Revised language to include that except for JADUs, no owner-occupancy requirement and deed restriction shall be enforced for ADUs.
•FCMC Section 17.78.090 Permit Process. Include language for pre-approval of designs for ADUs.
•Included amendments to FCMC Sections 17.78.060, 17.78.090, and 17.78.100 to update Government Code sections to new sections, 66310 through 66342. •FCMC Section 17.78.100.C Permitting of Existing Unpermitted ADUs or JADUs.

Included provisions for unpermitted or substandard ADUs built before January 1, 2020, noting Chief Building Official shall not deny the permit unless they make a finding that correcting the violation is necessary to comply with the standards specified in Section 17920.3 of the Health and Safety Code or the building is deemed substandard pursuant to Section 17920.3 of the Health and Safety Code. •New Section: Add FCMC Section 17.78.075 Standards applicable to Public Facilities (PF) zoning districts to provide regulations for ADUs in PF zoning districts.
-------------------------------------------------------------------------------------------------------------------- H-D-6-c Amend Parking Requirements. Amend parking requirements for multi-family housing as necessary, including but not limited to setting a maximum of two stalls per unit and reducing guest parking requirements by 50%, to allow General Plan densities and to reduce housing costs and provide appropriate parking requirements for elderly, developmentally disabled, or other special needs populations.

Existing Regulations: The City’s parking regulations are contained in FCMC Chapter

17.62. Amendments to FCMC Chapter 17.62 were adopted via Ordinance 674 at a City

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Council Special Meeting on March 20, 2024 ( see meeting link). The amendments addressed the portion of this implementation measure to “amend parking requirements for multi-family housing as necessary, including but not limited to setting a maximum of two stalls per unit and reducing guest parking requirements by 50%, to allow General Plan densities and to reduce housing costs.”
FCMC Section 17.62.060.A.5 includes the following parking regulations:

5. Senior Citizens Rental Housing.
a. A housing development designed and maintained as rental housing for senior citizens (persons aged sixty years or older) will be permitted a reduction in the required number of resident off-street parking stalls down to a ratio of one-half off-street parking stalls per bedroom. b. Guest parking shall be provided at a ratio of one-half off-street parking stalls per unit.

Staff Comments: Based on the feedback received from the Land Use subcommittee and Planning Commission, including that there is variation in parking needs for different types of senior citizen housing; for example, affordable rental senior housing may require fewer spaces than market-rate senior rentals or for-sale market-rate senior housing; require a passenger loading/delivery zone for drop-off/pick-up and other short-term use, which could reduce the need for parking; and if the development provides a shuttle program, the amount of parking required could be reduced.

Proposed Amendments (Attachment 1, Exhibit G)
•FCMC Section 17.62.060.A.5 Senior Citizen Rental Housing. Revised to apply the requirements to Supportive Housing as well. Supportive Housing includes housing restricted to the developmentally disabled or other special needs populations. •FCMC Section 17.62.060.A.5.a, revised the parking requirement for “senior citizen rental and supportive housing” to require 0.75 stalls per bedroom for resident parking and added a reference to the potential to reduce the requirement with a Transportation Systems Management Plan. Such a plan could include the provision of a shuttle program.
•FCMC Section 17.62.060.A.5.b, revised the parking requirement for guest parking from 0.5 stalls per unit to 0.25 stalls per unit and that a passenger drop-off zone could reduce the guest parking by five (5) spaces.
•FCMC Section 17.62.060.A.5.c, added reference California Government Code Section 65654 that provides that if a supportive housing development is within 0.5 miles of a public transit stop, a local agency cannot impose minimum parking requirements for the supportive housing units.

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•FCMC Section 17.62.095.A.4, revised to add a requirement for a passenger drop- off zone for any senior citizen housing containing five or more dwelling units (rental or non-rental).
-------------------------------------------------------------------------------------------------------------------- Diverse Housing Types – Three (3) Housing Element Implementation Programs are discussed together in this section:

H-D-6-b Minimize Zoning Constraints. Evaluate zoning regulations that discourage the development of diverse housing types, including smaller, more affordable units and two- and three-bedroom units suitable for families and children. Amend City codes, including rescinding minimum floor areas in Chapter 17.56, provide that manufactured homes are permitted in single-family districts, and other amendments to encourage diverse housing types.

H-E-9-a Family Friendly Housing. Promote housing designs and unit mix to attract multigenerational households by encouraging developers to include housing features and more bedrooms (including three-bedroom units), as well as other on-site amenities, such as usable outdoor open space for multigenerational use, and multipurpose rooms that can be used for after-school homework clubs, computers, arts, or other resident activities. To address potential displacement of households with three or more persons, the City will research options to expand regulatory incentives to encourage the development of larger units.

H-E-9-b Small Housing Units. Amend the Zoning regulations to specifically allow housing targeted for extremely low-income households, including single room occupancy (SROs) and group homes for these income groups in the CM/PD, C-2, and PF zoning districts and establish or modify development standards to facilitate the development of SROs, amend regulations to provide expedited review for these housing types, explore funding sources for SROs, and conduct outreach to neighborhood groups, stakeholders, and local businesses regarding the advantages of providing opportunities for new construction and preservation of SROs.

Staff comments: The three (3) programs noted above encourage the provision of diverse housing types and sizes.

The City has already taken several actions to encourage diverse housing types and sizes, including rescinding FCMC Chapter 17.56 Minimum Floor Areas via Ordinance 660, adopting pre-reviewed ADU designs ADUs, and so on to implement program H-D- 6-b.

ADUs also provide for multi-generational housing in single-family zoning districts. In addition, the State density bonus law ( California Government Code Section 65915(h)) provides a density bonus for providing a childcare facility that meets certain requirements as part of a housing development, and this regulation is included in FCMC Chapter 17.86 and meets program H-E-9-a.

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A single-room occupancy (SRO) unit is usually small, between 200 and 350 square feet.

These units provide a valuable source of affordable housing for individuals and can serve as an entry point into the housing market for people who previously experienced homelessness (excerpt from HCD website). Unlike a hotel unit with an occupancy limit of no more than 30 days, an SRO unit can be rented for more than 30 days. Staff has included amendments to add SROs as a permitted use in various zoning districts to implement the program H-E-9-b.

Proposed Amendments (Attachment 1, Exhibits A, D, E, and F) •FCMC Section 17.04 Definitions: Added definition for single room occupancy (SRO).
•Added SROs as permitted use in CM Commercial Mix District, C-2 General Business District, and PF Public Facilities zoning districts, and amended FCMC Sections 17.26.020, 17.28.030, and 17.33,020. This will streamline the process.

On September 3, 2024, the City Council, as part of the application for the 2024 Local Housing Trust Fund (LHTF) Program Notice of Funding Availability, approved three (3) loan programs, including Below Market Rate (BMR) Multifamily Rental Development Loan Program, BMR ADU Loan Program, and Low-Income Homeowner Rehabilitation Loan Program. When the city issues notices of funding availability (NOFA) for BMR Multifamily Rental Development Loan Program (scheduled for 2025), staff will include provisions to encourage units of three or more bedrooms and other family-friendly features such as play areas, daycare facilities, etc. to further implement the program, H- E-9-a
-------------------------------------------------------------------------------------------------------------------- H-F-2-e Low Barrier Navigation Centers. In addition to the amendments included in Ordinance 657 to allow LBNCs in C-1 and PF Districts, amend the Zoning regulations to allow low-barrier navigation centers (low-barrier, service enriched shelters focused on moving people into permanent housing that provide temporary living facilities) by right in the R-T, R-3, R-4, C-2, and CM/PD zoning district(s), consistent with AB 101 (2019).

Existing Regulations: The City’s current regulations regarding low barrier navigation centers are contained in:
•FCMC Chapter 17.82 Emergency Shelters, Low Barrier Navigation Centers, and Supportive Housing
•FCMC Chapter 17.02 Definitions
•References to Low Barrier Navigation Centers as a permitted use in FCMC Chapters for C-1, C-2, and PF Districts (C-2 allows all uses listed in C-1 by reference).

Staff comments: AB 101, passed in 2019, requires that a Low Barrier Navigation Center (LBNC) development is allowed as a use by right in areas zoned for mixed-use and

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nonresidential zones permitting multifamily uses if it meets the requirements specified in Government Code Section 65660 et seq. et seq.

To comply with state law and the commitment in H-F-2-e to allow LBNCs in R-T Townhouse Residence, R-3 Medium-Density Multiple-Family Residence, R-4 High- Density Multiple-Family Residence, C-2 General Business District, and CM/PD Commercial mix/Planned Development, amendments are needed to FCMC Zoning Code Chapters 17.02, 17.16, 17.18, and 17.28 to include revisions to the definition and allow the Low Barrier Navigation Center as a permitted use. FCMC Chapter 17.20 R-4 already references the uses permitted in R-3 Districts, which include emergency shelters and Low Barrier Navigation Centers (Attachment 1, Exhibits B, C, D, E, and J).

Proposed Amendments (Attachment 1, Exhibits A, B, C, D, E, and F) •FCMC Section 17.16.020.G. Adding Low-Barrier Navigation Centers as permitted use in RT Townhouse Residence District.
•FCMC Section 17.18.020.D Adding Low-Barrier Navigation Centers as a permitted use in R-3 Medium Density Multiple-Family Residence District. •FCMC Section 17.26.020.E Adding Low-Barrier Navigation Centers and SROs (and other uses allowed in conjunction with residential uses such as community care facilities since this is a mixed use district) as a permitted use in C-2 General Business District. (See below for discussion regarding addition of supportive housing in mixed use districts).
•FCMC Section 17.28.030.D Adding Low-Barrier Navigation Centers and SROs (and other uses allowed in conjunction with residential uses such as community care facilities since this is a mixed use district) as a permitted use in CM Commercial Mix District. (See below for discussion regarding addition of supportive housing in mixed use districts).
•FCMC Section 17.32.020.E Adding Single room occupancy, transitional housing and supportive housing as permitted uses in PF Public Facilities District. -------------------------------------------------------------------------------------------------------------------- H-F-3-b Supportive Housing. Review and revise the Zoning regulations as amended in January 2023 for consistency with AB 2162, effective January 1, 2019, requiring supportive housing by-right in certain zoning districts.

Existing Regulations: The City’s current regulations related to supportive housing are contained in:

1. FCMC Chapter 17.82 Emergency Shelters, Low Barrier Navigation Centers, and Supportive Housing

2. FCMC Chapter 17.02 Definitions

3. References to supportive housing as a permitted use in FCMC Chapters for R-1, R-2, R-T, R-3, and R-4

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Supportive housing is defined in FCMC Chapter 17.04 Definitions as follows:
“Supportive housing” means housing with no limit on length of stay, that is occupied by the target population as defined in Section 65582(i) of the California Government Code, and that is linked to on- or off-site services that assist the supportive housing residents in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.

State law: The two (2) primary requirements of the state law are: 1) that supportive housing be allowed as a permitted use in all zones that allow residential uses, and 2) a streamlined ministerial approval process is provided for proposals that meet certain requirements.

AB 2162, passed in 2018, amended Section 65583.c.3 of the California Government Code to require that supportive housing be a use by right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses, as follows:
(3) Address and, where appropriate and legally possible, remove governmental and nongovernmental constrains to the maintenance, improvement, and development of housing, including housing for all income levels, and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650).

AB 2162 also included streamlining provisions that if the proposed supportive housing development meets specified criteria, the local government is required to approve, within specified periods, a supportive housing development that complies with these requirements. The bill requires that a developer of supportive housing provide the planning agency with a plan for providing supportive services, with documentation demonstrating that supportive services will be provided onsite to residents in the project and describing those services, as provided. The bill also prohibits the local government from imposing any minimum parking requirement for units occupied by supportive housing residents if the development is located within ½ mile of a public transit stop.

Staff comments: The City’s current zoning regulations list supportive housing as a permitted use in the R-1, R-2, R-T, R-3, and R-4 districts. However, the regulations do not list supportive housing as permitted in the City’s mixed-use districts, C-2 and CM, although FCMC Section 17.83.030.B mentions that supportive housing projects are permitted in all zones where multifamily and mixed uses are permitted.

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The streamlining provisions of AB 2162, contained in Government Code Section 65651, are included in FCMC Section 17.83.020.B, although they are incorrectly identified for only supportive housing projects in nonresidential zones. The requirements to be eligible for the streamlined process should have been provided for all supportive housing proposals in multifamily and mixed-use zones.

Proposed amendments (Attachment 1, Exhibit D, E, and J) •FCMC Section 17.26.020.E Adding supportive housing as a permitted use in C-2 General Business District.
•FCMC Section 17.28.030.D Adding supportive housing as a permitted use in CM Commercial Mix District.
•Include a provision in FCMC Chapter 17.82 that requires the Community Development Director to prepare an application for the streamlined review process. This would include the municipal code requirements presented in a checklist format for ease of use, similar to examples from Santa Barbara and San Francisco.

CEQA
The City of Foster City, as the Lead Agency, certified the EIR (SCH# 2022010509) for the City of Foster City Housing Element and Safety Element Updates on May 22, 2023, pursuant to the California Environmental Quality Act (CEQA) and the State CEQA Guidelines. The amendments to Title 17, Zoning, for the implementation of the programs are included in the Housing Element with a timeframe of implementation by December 2024 and were contemplated in the certified EIR. Therefore, no further environmental review is necessary.

FISCAL IMPACT
There is no fiscal impact related to this item except for the staff and consultant time spent on the preparation of the Ordinance.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:

Attachment 1 – Ordinance with Exhibit A through J
Attachment 2 – Planning Commission Resolution P-23-24
Attachment 3 – Draft Meeting Minutes for Land Use Subcommittee meeting, Sept 11, 2024

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ORDINANCE NO.______________

AN ORDINANCE OF THE CITY OF FOSTER CITY ADOPTING TEXT AMENDMENTS TO VARIOUS CHAPTERS WITHIN TITLE 17, ZONING, OF THE FOSTER CITY MUNICIPAL CODE TO IMPLEMENT THE RHNA 6 HOUSING ELEMENT FOR THE 2023-2031 PLANNING PERIOD AND COMPLY WITH RECENT CHANGES IN STATE

LAW AND FINDING THAT THE AMENDMENTS ARE WITHIN THE SCOPE OF THE

ENVIRONMENTAL IMPACT REPORT PREPARED UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) FOR THE HOUSING ELEMENT AND SAFETY ELEMENT UPDATE (SCH#2022010509). – RZ2024-0012

CITY OF FOSTER CITY
WHEREAS, the Housing Element is an integral part of the Foster City General Plan that identifies the community’s housing needs, states the community’s goals and objectives regarding housing production, rehabilitation, preservation, and conservation to meet those needs, and defines the policies and programs; and WHEREAS, Chapter 8, Housing Goals, Policies, and Programs of the Housing Element, forms the housing policy roadmap for the city and describes the implementation measures that the city needs to undertake in the planning period 2023-31; and WHEREAS, these goals, policies, and programs aim to provide additional housing in a way that is balanced with the community’s desires to retain the aspects of Foster City that make it a great place to live, work, and play; and WHEREAS, the Housing Element Programs include the City’s commitment to timeframes for implementation and the Annual Progress Report (APR) to the California Department of Housing and Community Development (HCD), due by April 1 of each year, reports on progress in implementation of these Programs; and WHEREAS, amendments to Foster City Municipal Code, Title 17, Zoning are required for the implementation of the Housing Element programs, including, H-C-1-b, H- D-6-b, H-D-4-f, H-D-6-c, H-E-9-a, H-E-9-b, H-F-2-e, and H-F-3-b for the year 2024; and WHEREAS, on September 11, 2024, a Land Use Subcommittee meeting was held to discuss the implementation of the Housing Element programs; and WHEREAS, on September 19, 2024, a Planning Commission Study Session was held to review and discuss proposed amendments to Title 17, Zoning for the implementation of the Housing Element programs; and
WHEREAS, on October 17, 2024, the Planning Commission conducted a duly and properly noticed public hearing to take public testimony and consider adoption of text amendments to Title 17, Zoning, of the Foster City Municipal Code to implement the RHNA 6 Housing Element for the 2023-2031 planning period and comply with recent changes in State Law and finding that the amendments are within the scope of the

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Environmental Impact Report prepared under the California Environmental Quality Act (CEQA) for the Housing Element and Safety Element Update (SCH#2022010509); and WHEREAS, the proposed amendments within the scope of the Environmental Impact Report prepared under the California Environmental Quality Act (CEQA) for the Housing Element and Safety Element Update (SCH#2022010509); and WHEREAS, on November 6, 2024, a Notice of Public Hearing was duly posted for consideration of the amendments to various Chapters in Title 17, Zoning, of the Foster City Municipal Code to implement the RHNA 6 Housing Element for the 2023-2031 planning period and comply with recent changes in State Law, and the related CEQA finding, for the City Council public hearing on November 18, 2024; and WHEREAS, on November 18, 2024, the City Council held a duly noticed public hearing where it carefully reviewed and considered the staff report and all attachments thereto, including the Planning Commission’s recommendation regarding the proposed text amendments to Title 17, Zoning, of the Foster City Municipal Code to implement the RHNA 6 Housing Element for the 2023-2031 planning period and comply with recent changes in State Law, as referenced above, as well as the proposed CEQA finding, including any and all timely submitted correspondence, all information submitted at or prior to the public hearing, and all public comment and testimony presented at the public hearing (collectively, the “Record”).

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY DOES ORDAIN AS FOLLOWS:

Section 1. The City Council does hereby find and determine based upon the aforementioned Record as follows:

1. The foregoing Recitals are true and correct and are incorporated herein by this reference; and

2. The proposed amendments are internally consistent with all other provisions of the General Plan and do not conflict with any of the previously adopted goals, policies, or programs of the General Plan.

3. The proposed amendments are necessary to implement the goals and policies of the General Plan through the implementation of the Housing Element.

4. The proposed amendments will not be detrimental to the public interest, convenience, and general welfare of the City.

5. The proposed text amendments to various Chapters in Title 17 are contemplated in the scope of the Environmental Impact Report prepared under the California Environmental Quality Act (CEQA) for the Housing Element and Safety Element Update (SCH#2022010509);
Section 2. Amendment. The City Council does hereby amend specified Chapters in Title 17, Zoning of the Foster City Municipal Code as presented in the attached Exhibits A through J, with additions identified by underline and deletions in strikethrough, as listed below and attached hereto and incorporated herein:
•Exhibit A: Chapter 17.04 Definitions

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•Exhibit B: Chapter 17.16 RT Townhouse Residence District •Exhibit C: Chapter 17.18 R-3 Medium Density Multiple-Family Residence District •Exhibit D: Chapter 17.26 C-2 General Business District •Exhibit E: Chapter 17.28 CM Commercial Mix District
•Exhibit F: Chapter 17.32 PF Public Facilities District •Exhibit G: Chapter 17.62 Off-Street Parking Regulations •Exhibit H: Chapter 17.76 Conversion Regulations
•Exhibit I: Chapter 17.78 Accessory Dwelling Units
•Exhibit J: Chapter 17.86 Emergency Shelters, Low-Barrier Navigation Centers, and Supportive Housing.

All other sections and subsections not specifically identified in Exhibits A-J shall remain unchanged.

Section 3. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council does hereby declare that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 4. Taking Effect. This Ordinance shall take effect and be in force thirty (30) days from and after its adoption.

Section 5. Posting. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall have it posted in three (3) public places designated by the City Council.

This Ordinance was introduced and read on the 18th day of November 2024, and passed and adopted on the ____ day of _____, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

_________________________

PATRICK SULLIVAN, MAYOR
ATTEST:
______________________________

PRISCILLA SCHAUS, CITY CLERK

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EXHIBIT A
Amendments to Chapter 17.04 Definitions
Chapter 17.04 Definitions of Title 17, of the Foster City Municipal Code is hereby amended to amend an existing definition as follows:

Navigation Center, Low-Barrier. “Low-barrier navigation center” is a housing-first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. A Low Barrier Navigation Center may be non-congregate and relocatable. “Low-barrier” means best practices to reduce barriers to entry, and may include, but is not limited to, the following:

1. The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth.

2. Pets.

3. The storage of possessions.

4. Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms.

Chapter 17.04 Definitions of Title 17, of the Foster City Municipal Code is hereby amended to amend an existing definition as follows:
“Single-room occupancy (SRO)” means a unit that is a one-room dwelling unit with limited cooking and living facilities designed primarily for one individual, within a multiple-unit structure.

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EXHIBIT B
Amendments to Chapter 17.16 RT Townhouse Residence District Section 17.16.020 Permitted Uses of Chapter 17.16 RT Townhouse Residence District of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

17.16.020 Permitted uses.

The following uses shall be permitted in the R-T district:

A. One-family attached residential or townhouse units; provided, that a maximum of six units may be joined together by common walls;
B. Accessory structures and uses located on the same site as the townhouse unit for which the use is clearly related to the primary unit;
C. Home occupations as defined in Section 17.04.020; D. Common open areas maintained and available for the use of the residents of the development;
E. Private roads and driveways; provided, that a minimum road width of twenty-four feet shall be maintained where no driveway access occurs, and width of twenty-eight feet shall be minimum where driveways or parking bays occur;
F. Common recreation facilities including but not limited to community buildings, swimming pools, activity court and the like. A minimum of ten percent of the development shall be devoted to active recreational activity;
G. Community care facilities including family day care homes, day care centers, residential care facilities, low-barrier navigation centers, transitional housing and supportive housing as defined by Section 17.04.020;
H. Accessory dwelling units in compliance with Chapter 17.78. (Ord. 674 § 2 (Exh. D), 2024)

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EXHIBIT C
Amendments to Chapter 17.18 R-3 Medium Density Multiple-Family Residence District Section 17.18.020 Permitted Uses of Chapter 17.18 R-3 Medium Density Multiple-Family Residence District of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

17.18.020 Permitted uses.

The following uses shall be permitted in the R-3 districts:

A. Multiple-family dwellings.

B. Accessory uses which are related to multiple-family dwellings.

C. Home occupations as defined in Section 17.04.250.

D. Community care facilities including family day care homes, day care centers, residential care facilities, low-barrier navigation centers, transitional housing and supportive housing as defined by Sections 17.04.020.

E. Accessory dwelling units in compliance with Chapter 17.78. (Ord. 674 § 2 (Exh. E), 2024)

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EXHIBIT D
Amendments to Chapter 17.26 C-2 General Business District Section 17.26.020 Permitted Uses of Chapter 17.26 C-2 General Business District of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

17.26.020 Permitted uses.

The following uses shall be permitted in the C-2 districts:

A. Any use which is a permitted use in the neighborhood commercial C-1 districts, except that the following uses are excluded from the C-2 zone: laundromats; B. Retail stores and services establishments which supply commodities or provide service primarily to meet the needs of residents of the community, such as large department stores, automobile sales agencies, bars and cocktail lounges, sale of antiques and specialty items, costume rental shops, bicycle stores (including rental and repair), hotels and motels (including restaurant and meeting rooms), and other general commercial uses serving the needs of the community as a whole and which, in the opinion of the city planning director, are similar to the above-mentioned uses;
C. Parking lots, open and other than accessory, for the storage of private passenger automobiles and subject to the provisions of Chapter 17.62; D. Incidental and accessory structures and uses on the same site with and necessary to the operation of a permitted use. (Ord. 674 § 2 (Exh. G), 2024) E. Community care facilities including family day care homes, day care centers, residential care facilities; single-room occupancy units; low-barrier navigation centers; transitional housing and supportive housing as defined by Section 17.04.020.

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EXHIBIT E
Amendments to Chapter 17.28 CM Commercial Mix District
Section 17.28.030 Permitted Uses of Chapter 17.28 CM Commercial Mix District of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

17.28.030 Permitted uses.

A. The uses permitted within the C-M district are only those uses consistent with the general plan land use designation and as specified within the use permit required in connection with such district. Other uses may be approved from time to time by the planning commission and found to be similar to the uses previously approved.

B. Cannabis testing laboratories may be an allowable use within the required use permit only in that portion of the C-M district that is located north of California State Highway Route 92, subject to the requirements of Chapter 8.10 and subject to the requirements of this chapter.

C. No use shall be established on a parcel of land which causes the amount of parking required by this title for that parcel to exceed the number of parking spaces provided. Where combined use of parking is requested, the number of parking spaces provided shall not be reduced below the number of spaces required by the maximum user. (Ord. 674 § 2 (Exh. H), 2024)
D. Community care facilities including family day care homes, day care centers, residential care facilities, single-room occupancy units, low-barrier navigation centers, transitional housing and supportive housing as defined by Section 17.04.020.

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EXHIBIT F
Amendments to Chapter 17.32 PF Public Facilities District Section 17.32.020 Permitted Uses of Chapter 17.32 PF Public Facilities District of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

17.32.020 Permitted uses.

The following uses shall be permitted in the P-F districts:

A. Buildings and facilities owned, leased or operated (whether in a governmental or proprietary capacity) by the city, the county, the state, or the federal government, any public school district or any other public district within the city.

B. Emergency shelters and low-barrier navigation centers for the homeless pursuant to Chapter 17.82.

C. Housing developments in conformance with Government Code Section 65913.16.

D. On properties owned or occupied by a religious institution or school use, up to four accessory dwelling units (ADUs) and/or junior accessory dwelling units (JADUs) per lot. (Ord. 677 § 3 (Exh. B), 2024; Ord. 657 § 4 (Exh. M), 2023)
E. Single room occupancy, transitional housing and supportive housing as defined by Section 17.04.020.

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EXHIBIT G
Amendments to Chapter 17.62 Off-Street Parking Regulations Section 17.62.060.A.5 of Chapter 17.62 Off-Street Parking Regulations of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

5. Senior Citizens Rental Housing and Supportive Housing. a. A housing development designed and maintained as rental housing for senior citizens (persons aged sixty years or older) or supportive housing will be permitted a reduction in the required number of resident off-street parking stalls down to a ratio of one-half0.75 off-street parking stalls per bedroom. Required resident parking may be reduced pursuant to Section

17.62.060.D.3.
b. Guest parking shall be provided at a ratio of one-half0.25 off-street parking stalls per unit. A passenger drop-off zone provided per Section 17.62.095.A.4 could count towards five (5) guest parking spaces. However, in no case, may the guest parking reduction exceed five (5) spaces. c. Notwithstanding the requirements for resident and guest parking, if a supportive housing development is located within one-half mile of a public transit stop, pursuant to California Government Code Section 65654, no minimum parking requirements shall be imposed.

Section 17.62.095 of Chapter 17.62 Off-Street Parking Regulations of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

17.62.095 Passenger drop-off zone requirements.

A. A minimum of one passenger drop-off zone shall be provided for the following:

1. Any new commercial, hotel, or office building constructed of forty thousand square feet or larger;

2. Any change in occupancy of any commercial or office building or the manner in which any use is conducted that would result in additional occupancy limits.

3. Any new residential building containing fifty or more dwelling units. (Ord. 674 § 2 (Exh. K), 2024)

4. Any senior citizens housing development containing five or more dwelling units.

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EXHIBIT H
Amendments to Chapter 17.76 Conversion Regulations
Chapter 17.76 Conversion Regulations of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

Chapter 17.76
CONVERSION REGULATIONS*
Sections:
• 17.76.010 Purpose.
• 17.76.020 Definitions.
• 17.76.030 General requirements.
• 17.76.040 Requirements for tentative map and use permit approval. * Editor’s Note: The provisions of this chapter supersede Sections 16.36.030, 16.36.070, 17.16.020, 17.56.010, and 17.62.010 of this code insofar as these sections apply to rental apartment conversions.

17.76.010 Purpose.

In order to provide for the housing needs of all economic segments of the community, and protect the health, safety, and welfare of its residents, the city council finds that the regulation of rental housing conversion is necessary to achieve the following purposes:

A. To attempt to provide a reasonable balance of rental and ownership housing in Foster City; B. To ensure that apartment conversions do not conflict with the goals or policies of the general plan;
C. To provide tenant and buyer protection relating to displacement and relocation of renters, ensuring purchasers are informed regarding the structural integrity of buildings and ensuring said buildings and utility systems reasonably comply with all current codes which may directly impact the health, safety, and welfare of future residents including codes related to noise and insulation standards;
D. To reduce and avoid the impact of such conversions on existing and future low and moderate income residents of the community by attempting to maintain an adequate supply of

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rental housing which provides the majority of housing opportunity for lower and moderate income households. (Ord. 214 § 1 (part), 1981)

17.76.020 Definitions.

For the purposes of this chapter the words set out in this section shall have the following meanings:

A. “Apartment” means a building designed for or occupied by two or more families living independently of each other as defined in the state UniformCalifornia Building Code as it shall be amended from time to time, except accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs) on single-family properties.

B. “Association” means the organization of persons who own a lot, parcel, area, condominium or right of exclusive occupancy in a community housing project.

C. “Building official” means the chief building official of the city or the designee of the planning community development director.

D. “Common area” means an entire project excepting all residential dwelling units therein.

E. “Community apartment.” A “community apartment” is where an undivided interest in the land is coupled with the right of exclusive occupancy of any apartment located thereon.

F. “Community housing project” means condominium project, as defined in Sections 685 and 686 of the Civil Code, or successor sections, containing two or more condominiums as defined in Section 783 of the California Civil Code, or its successor section; a community apartment project, as defined in Section 11004 of the Business and Professions Code, or successor section, containing two or more rights of exclusive occupancy; a stock cooperative as defined in Section 11003.2 of the Business and Professions Code, or successor section, containing two or more separately owned lots, parcels, or areas; and a planned development as defined in Section 11003 of the California Business and Professions Code, or successor section, containing two or more separately owned lots, parcels, or areas.

G. “Condominium” means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in a residential, industrial, or commercial building on such real property, such as an apartment, office or store. A condominium may include in addition a separate interest in other portions of such real property. Such estate may, with respect to the duration of its enjoyment, be either an estate of inheritance or perpetual estate; an estate for life; or an estate for years, such as a leasehold or subleasehold.

H. “Conversion” means a proposed change in the type of ownership of a parcel or parcels of land from a use that is not a community housing or community housing project use, together with the existing or added structures, to any types of ownership defined under community housing and community housing projects regardless of the present or prior use of such land and

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structures and whether substantial improvements have been made or are to be made to such structures.

I. “Developer” means the owner or subdivider with a controlling proprietary interest in the community housing project, or the person or organization making application hereunder.

J. “Director” means the planning community development director of the city of Foster City or his/herthe director’s designee.

K. “HandicappedDisabled”. A person is handicapped disabled who has a physical or mental impairment that substantially limits one or more major life activities, a person who has a history or record of such an impairment, or a person who is perceived by others as having such an impairment and has the following characteristics: an orthopedic disability impairing ability to obtain employment, a physical disability where the person requires special care facilities in the home, or a developmental disability or mental disorder which would render him or herthem eligible to participate in programs of rehabilitation or social services conducted by or on behalf of a public agency.

L. “Housing market area” means the area that includes the cities of Foster City, San Mateo and Belmont.

M. “Lower income” means households with incomes no greater than the maximum income for low income households, as published annually by the California Department of Housing and Community Development (HCD) as the official state income limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household sizea tenant or household that earns eighty percent or below of the county or SMSA median income, whichever produces the higher figure.

N. “Moderate income” means households with incomes no greater than the maximum income for moderate income households, as published annually by the California Department of Housing and Community Development (HCD) as the official state income limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household sizea tenant or household that earns more than eighty percent, but not more than one hundred twenty percent, of the county or SMSA median income, whichever produces the higher figure.

O. “Multiple family residential project” means a rental housing development consisting of five or more dwelling units attached to or within one structure.

P. “Organizational documents” means the declaration of restrictions, articles of incorporation, bylaws, and any contracts for the maintenance, management or operation of all or any part of the community housing project.

Q. “Planned development” means a real estate development other than a community apartment project as defined in Section 11004 of the Business and Professions Code, a project consisting of condominiums as defined in Section 783 of the Civil Code, or a stock cooperative as defined in Section 11003.2 of the Business and Professions Code, having either or both of the following features:

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1. Any contiguous or noncontiguous lots, parcels or areas owned in common by the owners of the separately owned lots, parcels or areas consist of areas or facilities the beneficial use and enjoyment of which is reserved to some or all of the owners of separately owned lots, parcels or areas;

2. Any power existing to enforce any obligation in connection with membership in the owners association as described in Section 11003.1 of the Business and Professions Code, or any obligation pertaining to the beneficial use and enjoyment of any portion of, or any interest in, either the separately or commonly owned lots, parcels or areas by means of a levy or assessment which may become a lien upon the separately owned lots, parcels, or areas of defaulting owners or members, which said lien may be foreclosed in any manner provided by law for the foreclosure of mortgages or deeds of trust, with or without a power of sale.

R. “Stock cooperative” means a corporation which is formed or availed of primarily for the purpose of holding title to, either in fee simple or for a term of years, improved real property, if all or substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation, which right of occupancy is transferable only concurrently with the transfer of the share or shares of stock or membership certificate in the corporation held by the person having such right of occupancy.

The term “stock cooperative” does not include a limited-equity housing cooperative, as defined in Section 11003.4 of the Business and Professions Code or successor section.

S. “Subdivision Map Act”. The “Subdivision Map Act” shall refer to the subdivision law of the state of California commencing with Section 66410 of California Government Code, or its successor.

T. “Subdivision ordinance” means an ordinance of the city of Foster City consisting of Title 16 of the Foster City Code and the Estero Municipal Improvement District Code as the same now exists or is hereafter amended. (Ord. 214 § 1 (part), 1981) U. “Very low income” means households with incomes no greater than the maximum income for very low income households, as published annually by the California Department of Housing and Community Development (HCD) as the official state income limits pursuant to Health and Safety Code Section 50093 for San Mateo County, adjusted for household size.

17.76.030 General requirements.

A. Conversion Tied to New Rental Construction. In no case shall rental apartment units be converted to a community housing project unless an equal number of new rental apartment units are constructed completed on or before January 1st of each calendar year. The planning director shall certify the total number of rental apartment units constructed completed the previous year, commencing on July January 1st and ending June December 31st 30th of each year. One hundred percent of the certified one year’s total for the previous year will be the allowed number of apartment units eligible for conversion into units of a community housing project in the current fiscal calendar year. In the event the maximum permitted number of units is not converted in a given fiscal year, the surplus shall be carried over once to the following year to count towards the number of apartment units eligible for conversion.

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1. Selection Procedure. Applicants may submit applications for conversions twice a year, due at the close of business on the last Friday of April, and the last Friday of October. The semiannual number of units approved for conversion shall not exceed one-half the total determined in Section 17.76.030 A, unless, at the previous commission hearing on conversion, there were no applications approved, or those approved did not equal the amount allowed for conversion. These applications must contain all information required for a tentative map application pursuant to this chapter.
a. If the applications for the number of units to be converted exceeds the amount allowed for conversion determined in Section17.76.030.A.1, the The planning director shall conduct a lottery to rank each batch of applications. in accordance with a formula based upon the following criteria:
a. The extent to which the proposed conversion will provide housing opportunities that address the goals of the Foster City housing element;
b. The extent to which the proposed conversion’s deleterious effect on occupying tenants will be mitigated by relocation and other assistance provided by the applicant; c. The extent to which the building is suitable on the basis of its physical condition and other amenities, for conversion to condominiums;
d. The extent to which the conversion impacts the local school system.

2. Acceptance and Ranking of Applications. The planning commission shall consider the applications in the order of their lottery ranking until the amount of units approved for conversion reaches the number of units allowed for conversion highest ranking acceptable applications and may approve applications from those presented. An application will not be complete and accepted for processing until staff determines that the materials submitted are sufficientcomplete. If an application is not referred to the planning commission for three successive application periods, the applicant may appeal directly to the commission. Upon request, the applicant shall receive from the planning director a written explanation of the rank given to the conversion application, and/or written explanation of the reasons for denial of the conversion application, and/or written information concerning the process for appeal of the ranking or denial of the conversion application. Applicants will be rejected unless it is demonstrated that the proposed project will meet specified minimum requirements with respect to criteria set out in subsection (A)(1)(a) and (A)(1)(b) of this section.

3. Exception. Notwithstanding the foregoing, additional rental units may be converted during the times specified if the city determines that the specific proposed conversions will be in the best interests of the residents of the city. In arriving at this conclusion, the city shall consider the need for ownership opportunities, the rental vacancy rate for the housing market area and/or the city, and any other matter deemed relevant by the city. The burden of proof shall be on the applicant to establish that on balance, the benefits to the community which will result from the specific proposal will substantially outweigh any detriments which may result.

B. Conformity with the General Plan. No conversion of multiple family rental units to ownership units shall be permitted unless and until the planning commission finds that the proposed

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conversion will not conflict with the goals and policies of the general plan, especially the housing element.

C. Prohibition of Discrimination Against Prospective Buyers with Children. In no case shall a project which can reasonably accommodate children, as determined in each case by the planning commission, limit initial sales to households or individuals without children.

D. Tenant Notification.

1. Notification of Hearing on Use Permit and Tentative Map. Not less than two weeks prior to the public hearing for use permit and tentative map, the applicant shall send all tenants of the building(s) proposed for conversion a written notice. Such notice shall indicate: that the subdivider intends to convert the building to a community housing project; the date and location of the public hearing; the steps and actions the subdivider and others, including governmental agencies, will or must take in order for the building to be converted. Such notice shall further specify:
a. That the tenant will be permitted to terminate any lease or rental agreement without penalty upon notifying the subdivider in writing thirty days in advance of such termination; b. That no existing tenant’s rent will be increased from the level that existed three months prior to the date of application for a tentative map until tenant purchase of the unit, or tenant relocation takes place, or the tentative map application is denied, whichever is later. This period shall not exceed twelve months. The tenant may credit the amount of rent paid in excess of the allowable rent to the rental payment(s) immediately following the approval of the tentative map.

Any rent increase following the twelve month period shall not exceed one hundred percent of the increase in the Bay Area Consumer Price Index for the most recent twelve month period; c. That the provisions for relocation assistance and/or special group considerations are applicable as specified in Section 17.76.040 B; and
d. That no tenant will be evicted during a period beginning with the date of application for tentative map and ending thirty days after the issuance of the notification of termination of tenancy except for just cause.

2. Lease Extension. The developer shall offer a ninety day extension of tenancy after the expiration of a lease or rental agreement which would expire prior to or at the time of commencement of sales or issuance of the final public report by the real estate commissioner.

3. Tenants Right to Purchase. The developer shall provide each tenant an irrevocable, nontransferable, preemptive right to purchase a unit or right of exclusive occupancy at a price no greater than the price offered to the general public for such unit. Such right shall be irrevocable for a period of ninety days after the commencement of sales or the issuance of the final public report by the real estate commissioner. Tenants shall have the right to the unit presently occupied and then to other units in the project only after they have been declined for purchase and vacated by the occupancy tenants. In no case shall an existing tenant have a preemptive right to more than one unit.

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4. Notification of Proposed Conversion Prior to Termination of Tenancy Due to Conversion (Notice of Intention to Convert). Each tenant of a conversion project shall be given one hundred eighty days notice of intention to convert prior to termination of his or herthe tenancy. The subdivider shall, at his/hertheir discretion, establish the date of issuance of the notice of intention to convert. Such notices shall apply to existing and subsequent tenants of units to be converted. Each person who becomes a tenant of a unit for which either a one hundred eighty day notice of intention to convert and/or any other notice required by this chapter has already been issued, shall be informed and given a copy of said notice before entering into any written or oral rental agreement. At that time, such tenant shall also receive, in writing, notification of the number of days remaining before the expiration of the notice of intention to convert previously issued. The ninety day right-of-first-refusal shall terminate no earlier than the expiration date of the notice of intention to convert.

5. Notice to Quit. A notice to quit as authorized by Civil Code Section 1946 must be served by the developer after the expiration date of the notice of intention to convert if a tenant is required to move or if a unit is sold. (Ord. 214 § 1 (part), 1981)

17.76.040 Requirements for tentative map and use permit approval.

A. General Requirements. Both a tentative map and use permit are required. The planning commission shall adhere to the requirements set forth in Section 17.76.030 in their review and approval or disapproval of tentative maps and use permits. A tentative map and use permit shall be disapproved if any of the following findings are made:

1. That the tentative map and use permit are not consistent with applicable authorities as set forth in Section 17.76.030B;

2. That approval of the tentative map and use permit would be inconsistent with this chapter;

3. That the design or proposed improvements of the subdivision is likely to cause or sustain substantial environmental damage as defined by California Public Resources Code Section 21000 et seq.;

4. That there is an insufficient supply of affordable replacement units in the housing market area available to tenants who will be displaced as a result of the conversion; or

5. The application does not comply with any other provision of this chapter.

B. Specific Requirements. An application for the conversion of rental housing into a community housing project will require the submittal of the following information, which must be submitted by the developer to the planning community development department at the same time the tentative map and use permit application are submitted unless otherwise stated:

1. Streets, Driveways and Parking Areas. All private streets, driveways and parking areas for said community apartment projects shall be improved and constructed with a structural section and site dimensions in accordance with the standards of the city and shall be designed to ensure that access for municipal services shall not be denied any dwelling unit therein by

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reason of deteriorated or impassable private streets, driveways, or parking areas, as determined by the public works director or his/her designee.

2. Compliance with Codes. The design, improvement and/or construction of a community housing project shall conform to and be in full accordance with all requirements of all building, fire and housing codes, zoning provisions and other applicable local, state or federal laws or ordinances relating to protection of public health, safety, and welfare, in effect and deemed appropriate by the planning commission at the time of the filing of the tentative map and use permit. Also, any violations of the latest adopted edition of the Uniform Housing Code as prepared by the International Conference of Building OfficialsCalifornia Building Code, or its successor, relating specifically to provisions protecting health and safety of residents, shall be corrected and any equipment or facilities which the building official determines are deteriorated or hazardous, shall be repaired or replaced. In particular, the developer shall repair or replace any damaged or infested areas in need of repair or replacement as shown in the structural pest report. The interpretation of what constitutes a hazard to public health and safety shall be made by the planning director, or his/her designee.

If the proposed project does not comply with the provisions of the state of California Uniform Building Code, Foster City Code, and/or the building official identifies items to be corrected as provided in the above, any use permit issued pursuant to this part shall require the developer to furnish a bond, in an amount equal to the building official’s estimated cost to bring the project into compliance with said codes, said fire regulations and/or such identified items to be corrected. Said bond shall run in favor of the individual purchasers and the homeowners association and shall provide for reasonable attorney’s fees in the event of default by the principal. The city shall hold said bond pending issuance of the certificate of completion.

3. Separate Metering. The consumption of gas and electricity within each dwelling unit shall be separately metered in accordance with the local utility and PUC regulations. In all cases, a water shut-off valve shall be provided for each unit.

4. Impact Sound Insulation. The applicant/owner shall demonstrate that wall and floor ceiling assemblies conform to the sound insulation performance criteria promulgated in Title 25, California Administrative Code, Section 1092, or its successor, and that any floor covering which is replaced similarly provides the same or greater insulation qualities.

5. Storage Requirements. Private, enclosed, weather-proofed and lockable outdoor storage space shall be provided for each dwelling unit according to the following schedule:

No. of Bedrooms Minimum Space
in Cubic Feet
Studio or 1 150
2 200

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No. of Bedrooms Minimum Space
in Cubic Feet
3 250
The above space shall be provided in the garage or parking area or contiguous to each unit.

This requirement may be waived by the planning commission if it is determined that sufficient storage space exists to reasonably fulfill this standard.

6. Private and Common Area Open Space. Common open green area and private open green areas shall be provided in conformance with Section 17.96.040.D. The planning commission shall review the adequacy of open space in terms of area, and privacy standards. Private outdoor space shall be provided for each unit, where practical. The amount of space shall be determined in each case by the size of the unit and amount of common open space. Adjoining units shall be redesigned or landscaped in such a manner as to preclude visual intrusion into private outdoor yards or interior spaces, where practical.

7. Noise Mitigation. Appropriate site design and construction techniques shall be utilized to ensure isolation from excessive noise sources outside of the project boundary. If the planning director determines that an excessive external noise source exists, the developer shall retain anAn acoustical engineer to shall evaluate the noise impact of external sources on the proposed units for conversion and develop mitigation measures. The construction shall comply with the city general plan and the applicable ordinances and state codes relating to sound transmission control.

8. Interim Maintenance Standards. The developer shall be responsible for improving and maintaining the structures and landscaping in accordance with the approved architectural and landscaping plans and good maintenance practices prior to turning them over to the homeowners’ association. The developer shall furnish a bond satisfactory to the public works director or his or her designee to ensure compliance with this requirement.

9. Off-street Parking. The amount and design of off-street parking shall comply with the requirements of Chapter 17.62 Off-Street Parking Regulations. project shall provide a minimum of one and one-half off-street parking spaces, one of which must be covered, per unit for each unit of one bedroom or less, and a minimum of two off-street parking spaces per unit of which one must be covered for each unit of two bedrooms or more. The applicant/owner shall demonstrate that additional spaces exist to reasonably accommodate guest parking. These requirements may be lessened to the extent that the applicant establishes that additional parking is not needed at the particular site proposed for conversion.

10. Applicability of City Ordinance Regulating Parking of Trailers and Recreational Vehicles, etc. Provisions for vehicle and recreation vehicle storage shall comply with Chapter 17.64 Vehicle and Recreational Vehicle Storage. Title 17, the zoning ordinance of the Foster City Code, regulating parking of trailers, repairing vehicles, etc. shall apply to the private street and to all parking along said street. The parking of recreational vehicles such as boats, trailers, etc. shall be prohibited throughout the entire development unless said parking is within an enclosed area. Vehicular curb parking along the private street shall be prohibited except in designated areas. Appropriate “No Parking” signs shall be installed by the applicant.

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11. Legal Description. A complete legal description of the property shall be provided.

12. Boundary Map. A boundary map showing the existing topography of the site and the location of all existing easements, structures and other improvements, and trees over four inches in diameter shall be provided.

13. Proposed Organizational Documents. In addition to such covenants, conditions and restrictions that may be required by the department of real estate of the state of California pursuant to Title 6 (condominiums) of the Civil Code or other state laws or policies, the developer shall provide the following organizational documents or information related to:
a. Conveyance of units;
b. Assignment of parking and management of common area within the project; c. A proposed annual operating budget containing a sinking fund to accumulate reserve funds to pay for major anticipated maintenance, repair or replacement expenses; d. FHA regulatory agreement if the project is FHA financed; e. The most recent balance sheet of the association.

14. Property and Structural Report. The property and structural report shall describe the physical condition and estimate remaining useful life of each of the following elements of each structure situated within the project proposed for conversion: roofs, foundations, exterior paint, paved surfaces, mechanical systems, sprinkler systems for landscaping, utility delivery systems, central or community heating and air conditioning systems, sound insulation, fire protection systems including any automatic sprinkler systems, alarm systems, or standpipe systems, and structural elements. Said report shall also identify any structural elements which are known to be structurally defective or unsafe so as to impose a hazard to the health and safety of the occupants and users of said improvements. Such report shall also include recommendations to ensure the continued useful life of such elements and systems, and be prepared by a registered civil or structural engineer, or a licensed general building contractor or general engineering contractor. The developer shall arrange for project inspections by the building department to verify the accuracy of the structural report. The building official shall prepare a report detailing building code deficiencies or other health or safety deficiencies which must be corrected prior to sale of units or occupancy.

15. Structural Pest Report. The report shall be prepared within sixty days of the date of application by a licensed structural pest control operator pursuant to Section 8516 of the Business and Professions Code, or its successor section, relating to written reports on the absence or presence of wood destroying pests or organisms.

16. Building History Report. The building history report shall be prepared to include the following:
a. The date of construction of all elements of the project;

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b. A statement of the major uses of said projects since construction; c. The date and description of each major repair of any element since the date of construction.

For the purposes of this subsection, a “major repair” means any repair for which an expenditure of more than one thousand dollars was made;
d. The date and description of each major renovation of any element since the date of construction. For the purposes of this subsection, “major renovation” means any renovation for which an expenditure of more than one thousand dollars was made; e. Statement regarding current ownership of all improvements and underlying land; f. The name, address, and age of present tenants including children, in the project; g. Estimated market value of each unit;
h. Failure to provide information required by subsections (B)(16)(a) through (g) of this section shall be accompanied by an affidavit, given under penalty of perjury, setting forth in detail all efforts undertaken to discover such information and all reasons why said information cannot be obtained.

17. Rental History. The developer shall furnish a report detailing the size in square footage, the current or last rental rate, the monthly rental rate for the preceding two years, and the monthly vacancy over the preceding two years of each rental unit proposed to be converted.

18. Project Organization. A written description shall be furnished regarding the proposed project organization including the use and control of the common elements and recreation facilities within the project. Said statement shall detail any proposed control of common facilities to be retained by the developer or to be owned or maintained by any organization other than the homeowners’ association or unit owners.

19. Copy of Application and Supplemental Questionnaire. The developer shall furnish:
a. A true copy of each application submitted for issuance of a final public report to the department of Real Estate of the state of California for the project proposed for conversion including all attachments and exhibits thereto required by the department pursuant to Section 11011 of the Business and Professions Code;
b. A true copy of the statement of compliance (form 643 as amended) pursuant to 10 Cal. AD.

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d. A true copy of the supplemental questionnaire for apartments converted to condominiums, community apartments, or stock cooperative projects submitted to the Department of Real Estate of the state of California for the project proposed for conversion, and shall include all attachments and exhibits thereto.

Provided, however, that to the extent the information required to be furnished pursuant to subsection (B)(19) of this section is not available at the time of application, any conditional use permit issued under this part shall require the developer to furnish such information to the city within ten days of submission of the same to the Department of Real Estate; provided further, that the developer shall file with the city a true copy of the final public report’ within ten days of issuance by the Department of Real Estate.

20. Relocation Displacement or Mitigation Plan. The developer shall submit a relocation displacement plan which shall include the following:
a. Ddetail tThe number of residents which who will be displaced as a result of the proposed conversion, noting the number of disabled persons, elderly persons, and households with minor children to be displaced.
b. and dDocumentation of the availability of comparable replacement housing in the housing market area within a rental range equal to the range which the tenants have paid as detailed in a rental report or within a price range which is equal to or less than thirty percent of the income range of each household to be displaced as a result of the conversion, whichever is higher. c. In addition,Documentation that replacement housing must be shown towill meet any special needs, which are presently available in the project, of displaced tenants such as facilities for the handicappeddisabled persons, elderly persons, households with children, and availability of public transportation for the disabled persons, elderly persons, disabled, or resident buyers who are temporarily displaced pending completion of improvements to the units being purchased. If the sufficient comparable replacement housing is unavailable, a developer may shall meet the above requirements through the provision of mitigating factors to diminish the number and/or aid relocation of displaced tenants within the project. Said mitigating measures may include but are not limited to discounting the project units to tenant buyers, offering a moving allowance, extending leases, or providing below market rate units in addition to the number required by Chapter 17.90. Said mitigating measures shall be equivalent to at least ten years multiplied by the difference between existing rent and rent for comparable replacement housing. d. Document the inclusion of tTenant protection provisions required by state law. e. Document the inclusion of tTenant protection provisions required by subsection 21 below.

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i. Tenants shall have the option of cancelling the lease at any time upon thirty days’ written notice to the owner;
ii. Tenants cannot be evicted except for just cause; iii. Right of occupancy shall be nontransferable;
iv. The first years’ base monthly rent for the unit shall be set at no more than the rent existing on the unit one year prior to the filing of the tentative map or tentative parcel map increased by no more than one hundred percent of the percentage increase in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland Metropolitan Area, All Items Index (Bay Area CPI) from the date one year prior to the filing of the tentative map or tentative parcel map to the effective date of the lifetime lease;
v. Subsequent rent adjustments, if any, may be made no sooner than one year from the effective date of the lifetime lease, shall be limited to no more than one per year, and the percentage increase in rent shall not exceed one hundred percent of the percentage increase in the Bay Area CPI for the most recent twelve-month period; vi. Except as provided hereinabove, terms and conditions of the lifetime lease shall be the same as those contained in tenant’s current lease or rental agreement. ab. Families with School Age Children. Families with minor children shall be granted lease extensions until thirty days after the expiration of the current school session. bc. Relocation Assistance. The developer shall provide monetary relocation assistance, equal to a minimum of two three months rent, to non-purchasing tenants, apportioned equally among the number of tenants in each unit.
c. Non-monetary Relocation Assistance. The developer shall provide a free one-year subscription to a rental assistance services or relocation assistance services provider. d. Low and Moderate Income Housing. Ten percent of the units proposed for conversion shall be set aside for qualified low and moderate income rental or purchase or to the city or any such entity designated by the city or one percent of the gross sales must be contributed to the city. If rented, the developer shall indicate those units to remain as rentals and the methods of rent increases to ensure the availability of the units to remain as low and moderate income housing.

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purchasers if the right to purchase is exercised by the city or its designated agent. If the unit is not sold within twelve months to low or moderate income households or the city or its designated agent, the developer may sell to the general public at an unrestricted price.Moderate income housing shall be provided as required by Chapter 17.90 Below Market Rate Inclusionary Housing Program in the same quantity and the same standards as would be required for newly constructed dwelling units. Preferences for purchase of these units shall be based on the following preferences: 1) income qualified existing tenants that have at least one member of the household who is disabled, 2) income qualified existing tenants age 62 or older, 3) income qualified existing tenants with minor children, 4) all other income qualified existing tenants, and 5) all others in the preference order as established by the city to be applied citywide to below market rate units.

22. Further Necessary Information. The developer shall provide any other information which the planning commission or director planning department determines is necessary to evaluate the proposed project.

C. Waiver of Application Requirements. The planning director may waive the submission of certain factual items in Section 17.76.040 if it is demonstrated that such information is not available and cannot be obtained. The planning director may waive or grant specific exceptions to any of the requirements of Section 17.76.040 if he/she determines that substantial compliance is not feasible under all of the particular circumstances, as deemed appropriate by the planning director.

D. Public Hearings. Applications for the tentative map, use permit and other required city approvals, as well as detailed site improvements should be submitted to the city. City staff will make a recommendation to the planning commission who will hold a public hearing on the project to approve or deny the application. The commission’s action on an application may be appealed to or is subject to being called up by the city council. The city council would then hold a public hearing on the application to make a final determination.

E. Buyer Protection. The developer shall furnish each prospective purchaser of a unit, a true copy of the conditional use permit issued under this part and a copy of each of the following documents:

1. Property report;

2. Structural pest control report;

3. Property and structural report and building department report;

4. Building history report;

5. Statement of compliance (Form 643) pursuant to 10 Cal. AD. Code, Section 2792.9, or its successor, relating to operating and maintenance funds during start-up;

6. Soils report as determined in each case by the planning director;

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7. The planning director’s letter certifying compliance.

F. Letter Certifying Compliance. The planning director shall cause a final inspection of all buildings and structures to be made, upon request by the developer, to determine that the requirements of this section have been fulfilled. The building official shall then mark the inspection report to show the corrections, repairs and replacements which have been made. If complete, the planning director will cause to be issued a letter certifying compliance with all of the conditions and approvals and with this chapter and authorize sale and/or occupancy of said units. No building or unit applied for under this part shall be sold without said letter certifying compliance and approving occupancy. (Ord. 214 § 1 (part), 1981)

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EXHIBIT I
Amendments to Chapter 17.78 Accessory Dwelling Units
Chapter 17.78 Accessory Dwelling Units of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

Chapter 17.78

ACCESSORY DWELLING UNITS
Sections:

17.78.010 Findings.

17.78.020 Purpose.

17.78.030 Application.

17.78.040 Definitions.

17.78.050 Permit application for an accessory dwelling unit.

17.78.060 Standards applicable to single-family residence zoning districts.

17.78.070 Standards applicable to multifamily residence zoning districts.

17.78.080 Parking requirements for accessory dwelling units.

17.78.090 Permit issuance.

17.78.100 Other provisions.

17.78.010 Findings.

A. The adoption of an accessory dwelling unit ordinance which permits accessory dwelling units by ministerial review in areas zoned to allow residential development is consistent with the goals and policies of the Foster City general plan in that accessory dwelling units would help meet the need for affordable housing. Furthermore, construction of accessory dwelling units is not as costly as new construction, because there are no additional land costs, infrastructure costs are reduced, and an accessory dwelling unit can be added at the cost of an addition to, or remodeling of, the main single-family dwelling.

B. The accessory dwelling unit ordinance is intended to permit accessory dwelling units while maintaining the health, safety and welfare of surrounding residents, the character of existing neighborhoods, and the community as a whole. (Ord. 657 § 4 (Exh. P), 2023)

17.78.020 Purpose.

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The purpose of this chapter is to allow accessory dwelling units in areas zoned to allow residential development through ministerial permit procedures in compliance with state laws. (Ord. 657 § 4 (Exh. P), 2023)

17.78.030 Application.

The provisions of this chapter shall apply in zoning districts where residential uses are permitted (with or without a planned development combining district). Accessory dwelling units are not permitted in any other district. (Ord. 657 § 4 (Exh. P), 2023)

17.78.040 Definitions.

A. “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes the following:

1. An efficiency unit.

2. A manufactured home, as defined in Section 18007 of the Health and Safety Code.

B. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.

C. “Attached accessory dwelling unit” means an ADU that is constructed as a physical expansion (i.e., addition) of an existing single-family residence and shares at least one (1) wall with the single-family residence.

D. “Conversion accessory dwelling unit” means an ADU that is created within existing space, including a portion of a primary dwelling unit or existing non-habitable space in an existing primary or accessory structure.

E. “Detached accessory dwelling unit” means an ADU that is constructed as a separate structure from the primary dwelling unit and does not share any walls with the primary dwelling unit or an existing attached accessory structure.

F. “Efficiency unit” has the same meaning as defined in Section 17958.1 of the Health and Safety Code.

G. “High-quality transit corridor” means a corridor with fixed route bus service with service intervals no longer than fifteen minutes during peak commute hours.

H. “Infeasible” shall mean when applicable development standards are applied, they would physically preclude development of a proposed ADU up to 800 square feet with at least 4 ft. side and read yard setbacks.

I. “Junior accessory dwelling unit” or “JADU” means a unit that is no more than five hundred (500) square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure.

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J. “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.”
IK. “Living area” means the interior habitable area of a dwelling unit including basements and attics but does not include a garage or any accessory structure or building.

JL. “Major transit stop” has the same meaning as defined in Section 21155 of the California Public Resources Code.

KM. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU.

LN. “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (Ord. 657 § 4 (Exh. P), 2023)

17.78.050 Permit application for an accessory dwelling unit.

The application for an ADU permit shall be made by the owners of the subject property in writing to the building division in the form designated by the building division and shall contain the following:

A completed building permit application form and applicable fee; B. Written project description;
C. Courtesy neighbor notification report in a form designated by building official indicating adjacent property owners have been notified of the new ADU (garage conversions are exempt from notification);
D. Plans and drawings as required by the building division; E. A copy of required deed restriction as included in Section 17.78.100, unless exempt. (Ord. 657 § 4 (Exh. P), 2023)

17.78.060 Standards applicable to single-family residence zoning districts.

The following shall apply to single-family lots in R-1, R-2 and R-1/PD zoning districts:

A. Number of Units. A single-family lot with a primary dwelling unit may have:

Option 1
One JADU (up to 500 SF); or
Option 2
One ADU (conversion, attached, or detached); or
Option 3

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One (1) JADU (up to 500 SF); and,
One (1) conversion ADU; and,
One (1) newly constructed ADU (up to 800 SF).

Option 4
One (1) JADU (up to 500 SF); and,
One (1) newly constructed ADU over 800 square feet
Option 5
One (1) JADU (up to 500 SF); and,
One (1) conversion ADU
B. Junior Accessory Dwelling Units.

1. The number of JADUs shall be limited to one (1) unit per residential lot zoned for single- family residences that includes a proposed or existing single-family residence and may include an expansion of not more than 150 square feet beyond the same physical dimensions as an existing accessory structure.

2. The property owner must reside in either the remaining portion of the primary dwelling unit or the JADU. Owner occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization.

3. The owner must record a deed restriction as outlined in Government Code Section 6633365852.22, which shall run with the land, and shall include both of the following:
a. A prohibition on the sale of the JADU separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers. b. A restriction on the size and attributes of the JADU that conforms with this chapter. c. If a JADU is rented, the unit shall not be rented for a period of less than thirty consecutive calendar days.

4. A JADU shall be constructed within the walls of the proposed or existing single-family residence, including attached garages.

5. JADUs shall include a separate entrance from the main entrance to the proposed or existing single-family residence. If a permitted JADU does not include a separate bathroom, the permitted JADU shall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area.

6. The JADU shall include an efficiency kitchen, which shall include all of the following:
a. A cooking facility with appliances.

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b. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

C. Attached ADUs. One attached ADU per single-family lot is permitted, subject to the following requirements:

1. Size. The total floor area of an attached ADU shall be not more than one thousand two hundred (1,200) square feet or fifty (50) percent of the existing or proposed primary dwelling, whichever is less.

2. Location. Attached ADUs shall not be located in the front yard unless development of an eight hundred (800 sq. ft.) square foot ADU is otherwise infeasible.

3. Setbacks. The side and rear setbacks shall be no less than four (4) feet.

4. Height.
a. An attached ADU shall not exceed twenty-five (25) feet in height, or the height requirement for the primary dwelling, whichever is lower.
b. ADUs shall not exceed two (2) stories in height.

5. Colors. An attached ADU or JADU shall use the same exterior wall and roof colors as the primary dwelling unit.

6. Roof pitch and eaves. An attached ADU or JADU shall have the same roof pitch as the primary dwelling with same eave details but may vary by up to two (2) vertical inches more or less in every twelve (12) horizonal inches.

D. Detached ADUs. One newly constructed detached ADU per single-family lot is permitted, subject to the following requirements:

1. Size. The total floor area of a detached ADU shall not exceed one thousand two hundred (1,200) square feet or fifty (50) percent of the existing or proposed primary dwelling, whichever is less.

2. Location. Detached ADUs shall not be located in the front yard unless development of an eight hundred (800 sq. ft.) square foot ADU is otherwise infeasible.

3. Setbacks.
a. The side and rear setbacks shall be no less than four feet. b. The separation between the detached ADU and the primary dwelling shall be as per California Residential Code.

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section; and, and additional two (2) feet of height to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

5. Colors. Detached ADUs shall utilize the same exterior wall and roof colors as the primary dwelling unit.

E. Conversion ADUs. One conversion ADU per single-family lot is permitted, subject to the following requirements:

1. Setbacks. No setbacks shall be required for ADU conversions located within the existing living area or an existing accessory structure, or an ADU that replaces an existing structure and is located in the same location and to the same dimensions as the structure being replaced. A legal accessory building (including a detached garage) may be converted into an ADU provided the side and rear setbacks are sufficient for fire and safety.

Notwithstanding the provisions of this section, conversion ADUs shall provide sufficient side and rear setbacks for fire safety.

2. Height. A conversion ADU shall not alter the height of the existing structure (single-family dwelling, accessory building, or garage) that is being converted.

3. Other Standards.
a. Conversion ADUs in existing accessory structures may expand the existing dimensions of the structure no more than one hundred fifty (150) square feet to accommodate ingress/egress.

Any such expansion shall count towards the size of the ADU.

4. Colors. Conversion ADUs shall utilize same roof and exterior wall colors as the primary dwelling unit.

F. Additional Requirements. These requirements shall apply to all ADUs and JADUs on single-family lots:

1. All JADUs and ADUs shall provide exterior access that is separate from the proposed or existing single-family dwelling.

2. Except as specified in this section, ADUs shall comply with lot coverage, open space, front setbacks, minimum lot size, and other zoning standards applicable to the primary dwelling, except in no event shall the application of any of these standards preclude at least an eight hundred (800) square foot ADU.

3. Windows. Second floor windows facing another residential property, less than ten feet (10’) from the property line, and larger than two (2) square feet shall include at least one of the following: a) have obscured glazing, or b) be offset from neighbor’s windows to maximize privacy, or c) include splayed windows to avoid direct views, as shown in Figure 1 (applies only to new construction).

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Figure 1: ADU/JADU Window locations for privacy

4. Second floor balconies or decks. Second floor balconies, decks, or roof-top terraces facing another residential property are prohibited (applies only to new construction).

5. Exterior lighting. All exterior lighting shall be mounted no higher than seven feet (7’) from grade and directed downwards.

17.78.070 Standards applicable to multifamily residence zoning districts.

The following standards shall apply to multifamily dwelling lots in R-3, R-4, and R-T, C-2, and CM (with or without a planned combining district) zoning districts:

A. Conversion ADUs. ADUs are permitted within portions of existing legally permitted multifamily dwelling structures that are not used as livable space including storage rooms, boiler rooms, passageways, attics, basements, and garages, subject to the following requirements:

1. Number of ADUs. At least one ADU within an existing multifamily building and no more than twenty-five percent of the existing multifamily dwelling units shall be permitted.

2. Size. The total floor area of a conversion ADU shall not exceed eight hundred fifty square feet for a studio or one bedroom, or one thousand square feet for an ADU with two or more bedrooms.

3. Existing livable space may not be converted into an ADU.

B. Detached ADUs.

1. Number of ADUs.

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a. Up to two eight (82) detached ADUs are permitted on a multifamily lot with an existing, new, or proposed multifamily building. However, the number of ADUs allowable pursuant to this clause shall not exceed the number of existing dwelling units on the lot; or. b. On a lot with a proposed multifamily dwelling, not more than two (2) detached ADUs.

2. Size. The total floor area of a detached ADU shall not exceed eight hundred fifty (850) square feet for a studio or one (1) bedroom, or one thousand two hundred (1,200) square feet for an ADU with two (2) or more bedrooms.

3. Setbacks.
a. The side and rear setbacks shall be no less than four (4) feet. b. The separation between the detached ADU and the primary dwelling shall be as per California Residential Code.

4. Height.
a. Where an detached ADU is on a lot with an existing or proposed multifamily, multi-story dwelling, it shall not exceed eighteen (18) feet in height. b. Where an attached ADU is on a lot with an existing or proposed multifamily building, it shall not exceed twenty-five (25) feet in height or the height limit limitation for the zoning district, whichever is less.
bc. An ADU may add up to two (2) feet of height to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the multifamily dwelling (for a maximum of twenty (20) feet. (Ord. 657 § 4 (Exh. P), 2023)

17.78.075 Standards applicable to Public Facilities (PF) zoning districts.

The following shall apply to lots in PF (with or without a planned combining district) zoning districts:

A. Number of ADUs. No more than four (4) ADUs and/or JADUs shall be permitted on properties owned or occupied by a religious institution or school use.

B. Conversion ADUs. ADUs are permitted within portions of existing legally permitted structures that are not used as livable space, subject to the following requirements:

1. Size. The total floor area of a conversion ADU shall not exceed eight hundred fifty square feet for a studio or one bedroom, or one thousand square feet for an ADU with two or more bedrooms.

2. Existing livable space may not be converted into an ADU.

B. Detached and Attached ADUs.

1. Size. The total floor area of a detached ADU shall not exceed eight hundred fifty (850) square feet for a studio or one (1) bedroom, or one thousand two hundred (1,200) square feet for an ADU with two (2) or more bedrooms.

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2. Setbacks.
a. The side and rear setbacks shall be no less than four (4) feet. b. The separation between the detached ADU and the primary building shall be as per California Residential Code.

3. Height. Where an ADU is on a lot with an existing or proposed building, the height shall not exceed twenty-five (25) feet.

C. Additional requirements.

1. ADUs and JADUs shall comply with the standards in Section 17.78.060.F with references to primary residence applied to the primary building.

2. Colors. ADUs shall utilize the same exterior wall and roof colors as the primary building.

17.78.080 Parking requirements for accessory dwelling units.

A. Parking requirements for newly constructed ADUs shall not exceed one (1) parking space per unit or per bedroom, whichever is less. This space may be provided as tandem parking, including on an existing driveway or in setback areas, excluding the non-driveway front yard setback. Exception to the requirement for provision of one parking space may be made per subsection B of this section.

B. Parking is not required in the following instances:

1. The ADU is located within one-half mile walking distance of public transit.

2. When there is an approved car share vehicle for which a Foster City business license has been issued and remains active, located within one block of the accessory dwelling unit.

3. JADU.

4. ADU that only includes a studio with no bedroom.

5. The ADU is located within an architecturally and historically significant area.

6. Where the ADU is part of the proposed or existing primary residence or an accessory structure. (Ord. 657 § 4 (Exh. P), 2023)

7. When a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of, or is converted to, an ADU, then those off street parking spaces are not required to be replaced.

17.78.090 Permit process.

A. Unless otherwise specified in subsection D, pPursuant to Government Code Section 65852.266317 mandating ministerial approval of JADUs and ADUs if all of the applicable standards are met, the chief building official or his/her designee shall approve the JADU and ADU permit within sixty (60) days of the complete application being submitted. If the ADU or JADU is proposed as part of a new or remodeled primary residence, the sixty (60) day timeline shall not commence until the primary residence is permitted. The City may review and

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approve the ADU or JADU in conjunction with the new or remodeled primary residence, but the application to create the ADU or JADU shall be considered without discretionary review or hearing.

The chief building official or his/her designee shall approve the ADU permit within 30 days from the date the local agency receives a completed application if the application either:

1. utilizes a plan for an accessory dwelling unit that has been preapproved by the local agency within the current triennial California Building Standards Code rulemaking cycle, or

2. utilizes a plan that is identical to a plan used in an application for a detached accessory dwelling unit approved by the local agency within the current triennial California Building Standards Code rulemaking cycle.

B. If the City disapproves an application for an ADU or JADU, the building division shall return in writing, a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.

C. A demolition permit for a detached garage that is to be replaced with an ADU, mut be reviewed with the application for the ADU and issued at the same time.

D. In conformance with Government Code section 65852.27, the City shall, by resolution, adopt a program for the preapproval of designs for ADUs, which may be amended from time to time.

Any application for an ADU utilizing a design plan for ADUs that has been preapproved pursuant to that program shall be approved or denied within thirty days.

1. The City shall also review accessory dwelling unit plan submissions for preapproval upon an application for such a request and payment of the applicable fee. The City shall approve or deny the preapproval applications, as specified.

17.78.100 Other provisions.

A. Unless exempt from the owner occupancy requirement per subsection B of this section, Pprior to obtaining a building permit for an JADU, an owner-occupancy a deed restriction, approved by the city attorney, shall be recorded with the county recorder’s office, which shall include the pertinent restrictions and limitations of an JADU identified in this section including but not limited to: prohibition of the sale of the JADU separate from the sale of the single-family residence; restrictions on the size and attributes of the JADU; and prohibitions on rentals less than thirty consecutive days. Said deed restriction shall run with the land, and shall be binding upon any future owners, heirs, or assigns.

B. Owner Occupancy. Notwithstanding the foregoing or any other provision of this chapter, Except for the JADU owner-occupancy requirements set forth in this chapter, no owner- occupancy requirement shall be enforced, and no deed restriction shall be required for ADU permit applications except for a JADU.

C. Delay in Enforcement ofPermitting of Existing Unpermitted ADUs or JADUss. For any unpermitted or substandard ADU or JADU built before January 1, 2020, upon an owner’s request, the city’s chief building official shall not deny the permit unless they make a finding that correcting the violation is necessary to comply with the standards specified in Section 17920.3 of the Health and Safety Code or the building is deemed substandard pursuant to Section 17920.3 of the Health and Safety Code, pursuant to California Government Code Section 66332delay enforcing any building standards if the building official determines that the

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unpermitted ADU meets health and safety standards. This provision shall sunset on January 1, 2030; however, any delay that was approved by the enforcement agency before January 1, 2030, shall be valid for the full term of the delay.

D. Any ADU may be leased for a period not fewer than thirty (30) consecutive days.

E. Fire flow and fire department access must comply with the California Fire Code as amended by the San Mateo Consolidated Fire Department, or an alternate means shall be proposed.

F. Fire Sprinklers.

1. An ADU shall not be required to provide fire sprinklers if they are not required for the primary residence and may employ alternative methods for fire protection.

2. The construction of an ADU shall not trigger a requirement of fire sprinklers to be installed in the existing primary dwelling.

G. ADUs that are seven hundred fifty square feet or smaller are exempt from impact fees.

H. Notwithstanding the provisions of this sectionchapter, the requirements for newly constructed ADUs shall not preclude constructing one ADU of at least eight hundred square feet, which is not more than sixteen feet in height, and at least four feet setback from the side and rear property lines.

I. Notwithstanding any other provision of this code, an applicant shall not be required to correct nonconforming conditions on the subject property as a condition of obtaining permits to construct an ADU or JADU.

J. Any properties with ADUs built or developed by a nonprofit corporation may qualify to be sold or conveyed separately from the primary residence, pursuant to California Government Code Section 6634165852.26. A qualified nonprofit corporation is a nonprofit corporation which is organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in a special no-interest loan program.

K. All JADUs and ADUs shall comply with the current Title 24 California Code of Regulations, as adopted by the city and all related safety codes, except as otherwise permitted pursuant to Government Code section 66332.

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EXHIBIT J
Chapter 17.82 Emergency Shelters, Low-Barrier Navigation Centers, and Supportive Housing of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

Chapter 17.82

EMERGENCY SHELTERS, LOW-BARRIER NAVIGATION CENTERS, AND SUPPORTIVE

HOUSING
Sections:
• 17.82.010 Findings.
• 17.82.020 Purpose.
• 17.82.030 Permit required.
• 17.82.040 Performance standards.
• 17.82.050 Definitions.

17.82.010 Findings.

A. Emergency Shelters. Through the passage of SB2, the state requires all jurisdictions to provide zoning to permit homeless shelters “by right” as a permitted use without requiring use permits or other discretionary approvals.

B. Low-Barrier Navigation Centers. Through the passage of AB101, the state requires all jurisdictions to provide zoning to permit low-barrier navigation centers “by right” as a permitted use without requiring use permits or other discretionary approvals.

C. The city has considered the needs for programs to address homelessness in the housing element and has included policies and implementation programs in the housing element to include provisions in this title to address emergency shelters and low-barrier navigation centers for the homeless. (Ord. 666 § 3 (Exh. B), 2023; Ord. 657 § 4 (Exh. Q), 2023)

17.82.020 Purpose.

A. The purpose of the emergency shelter regulations is to provide standards that will encourage and facilitate the development of, or conversion of existing facilities to, an emergency shelter.

B. The purpose of the low-barrier navigation center regulations is to ensure this use is constructed and operated in a manner that is consistent with the requirements and allowances of state law, specifically Article 12 of Chapter 3 of Division 1 of Planning and Zoning Law commencing with California Government Code Section 65660.

C. The purpose of the supportive housing regulations is to ensure that supportive housing is constructed and operated in a manner consistent with the requirements and allowances of state law, specifically Article 11 of Chapter 3 of Division 1 of Planning and Zoning Law commencing with Government Code Section 65650. (Ord. 666 § 3 (Exh. B), 2023; Ord. 657 § 4 (Exh. Q), 2023)

17.82.030 Permit required.

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A. Low-Barrier Navigation Centers. A planning permit is required prior to establishment of any low-barrier navigation center project. Within thirty days of receipt of an application for a low- barrier navigation center development, the local jurisdiction shall notify a developer whether the developer’s application is complete pursuant to Government Code Section 65943. Within sixty days of receipt of a completed application for a low-barrier navigation center development, the local jurisdiction shall act upon its review of the application.

B. Supportive Housing. A planning permit is required prior to establishment of any supportive housing project meeting either of the following criteria (subsections (B)(1) and (2) of this section). The permit shall be a ministerial action without discretionary review or a hearing.

Supportive housing shall be subject to a streamlined process providing that fFor projects up to fifty units, action shall be taken within sixty days of a complete application being filed; for projects with more than fifty units, action shall be taken within one hundred twenty days,.

1. Supportive housing projects if all of in all zones where multifamily and mixed uses are permitted.

2. Supportive housing projects in nonresidential zones where all the following requirements are met:
a1. Units within the development are subject to a recorded affordability restriction for fifty-five years.
b2. One hundred percent of the units, excluding the manager unit(s), within the development are dedicated to lower income households and are receiving public funding to ensure affordability of the housing to lower income Californians. c3. At least twenty-five percent of the units in the development or twelve units, whichever is greater, are restricted to residents in supportive housing who meet criteria of the target population. If the development consists of fewer than twelve units, then one hundred percent of the units, excluding manager unit(s), in the development shall be restricted to residents in supportive housing.
d4. Nonresidential floor area shall be used for on-site supportive services in the following amounts:
ai. For a development with twenty or fewer total units, at least ninety square feet shall be provided for on-site supportive services.
bii. For a development with more than twenty units, at least three percent of the total nonresidential floor area shall be provided for on-site supportive services that are limited to tenant use, including, but not limited to, community rooms, case management offices, computer rooms, and community kitchens.
e5. The developer replaces any dwelling units on the site of the supportive housing development to ensure that any change to the occupancy of the supportive housing units is made in a manner that minimizes tenant disruption and only upon the vacancy of any supportive housing units.
f6. Units within the development, excluding manager unit(s), include at least one bathroom and a kitchen or other cooking facilities, including, at minimum, a stovetop, a sink, and a refrigerator. (Ord. 666 § 3 (Exh. B), 2023; Ord. 657 § 4 (Exh. Q), 2023)

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2. The community development director shall establish application requirements for streamlined review of supportive housing projects as required by California Government Code Section 65654 for projects that satisfy the requirements of Section 65651.

17.82.040 Performance standards.

A. Emergency shelters, as defined in Section 17.04.020, shall be allowed in any district where they are listed as a permitted use without discretionary permits or approvals, provided they comply with the following standards:

1. Maximum Number of Persons/Beds. An emergency shelter shall contain a maximum of twenty-five beds and shall serve no more than twenty homeless persons.

2. Minimum Parking Requirements. Emergency shelters shall provide one parking space for each employee or volunteer on duty when the shelter is fully open to clients, plus one parking space for every family (as defined in Section 17.04.020) sheltered and 0.35 parking spaces for each nonfamily bed; provided, that these standards do not require more parking than other residential or commercial uses within the same zone. The community development director shall reduce the parking requirements if the shelter can demonstrate a lower need. The shelter shall also provide bicycle parking of at least one-half space for each bed.

3. Size and Location of Interior On-Site Waiting and Client Intake Areas. Emergency shelters shall provide at least ten square feet of interior waiting and client intake space per bed. In addition, there shall be a minimum of one private office. Waiting and intake areas may be used for other purposes as needed during operations of the shelter, including communal space.

4. Provisions of On-Site Management and Security. On-site management shall be present at all times that the emergency shelter is in operation. Before opening, shelters shall develop and implement a management plan that addresses all points that pertain to emergency shelters in the latest quality assurance standards developed by the San Mateo County HOPE quality improvement project and meets at least the minimum standards, except where other standards are provided by this chapter. Shelters must prepare and implement a security and emergency plan as part of the management plan and train staff about the plan. A copy of the management plan shall be provided to the community development director for approval. The community development director shall approve the management plan if it meets the minimum requirements in the latest quality assurance standards developed by the San Mateo County HOPE quality improvement project.

5. Proximity to Other Shelters. No emergency shelter shall be located within three hundred feet of another emergency shelter.

6. Lighting. There shall be a minimum of ten candlefoot power at the door of the emergency shelter and extending in an unobstructed direction outward five feet. There shall be a minimum of two candlefoot power in other areas accessible from the street. The lighting shall be stationary and directed away from adjacent properties and public rights-of-way. These lighting requirements shall be in effect from thirty minutes after sunset until thirty minutes before sunrise. Shelters may propose an alternate lighting plan, which must be agreed to by the community development director. The alternate lighting plan must provide adequate external lighting for security purposes. The lighting shall be stationary, directed away from adjacent properties and public rights-of-way, and of intensity compatible with the neighborhood.

B. A low-barrier navigation center development is a use by right in certain zones, if it meets the following requirements:

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1. Connected Services. It offers services to connect people to permanent housing through a services plan that identifies services staffing.

2. Coordinated Entry System. It is linked to a coordinated entry system, so that staff in the interim facility or staff who co-locate in the facility may conduct assessments and provide services to connect people to permanent housing. “Coordinated entry system” means a centralized or coordinated assessment system developed pursuant to Section 576.400(d) or 578.7(a)(8), as applicable, of Title 24 of the Code of Federal Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals.

3. Code Compliant. It complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.

4. Homeless Management Information System. It has a system for entering information regarding client stays, client demographics, client income, and exit destination through the local homeless management information system, as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.

C. Supportive housing projects shall comply with all the following standards:

1. The project may shall be required to comply with any written objective standards or policies also required of multifamily developments in the same zone.

2. The applicant shall submit a plan for providing supportive services, to include all the following items:
a. Documentation that supportive services will be provided on site. b. The name of the proposed entities that will provide supportive services. c. The proposed funding sources for the services provided. d. Proposed staffing levels.

3. No minimum parking requirements shall be required for the units occupied by supportive housing residents for projects located within one-half mile of a public transit stop. (Ord. 677 § 3 (Exh. G), 2024; Ord. 666 § 3 (Exh. B), 2023; Ord. 657 § 4 (Exh. Q), 2023)

17.82.050 Definitions.

The following definitions shall pertain to this section only:

A. Lower Income Households. This term shall have the same meaning as defined in Section 50079.5 of the Health and Safety Code.

B. Supportive Services. Services would include, but are not limited to, a combination of subsidized, permanent housing, intensive case management, medical and mental health care, substance abuse treatment, employment services, and benefits advocacy.

C. Target Population. Persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or

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2 7
3 9
who are homeless youth, as that term is defined by Section 11139.3(e)(2) of the Government Code. (Ord. 666 § 3 (Exh. B), 2023; Ord. 657 § 4 (Exh. Q), 2023)

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RESOLUTION NO. P-23-24

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF FOSTER CITY RECOMMENDING CITY COUNCIL ADOPTION OF TEXT AMENDMENTS TO TITLE 17, ZONING, OF THE FOSTER CITY MUNICIPAL CODE TO IMPLEMENT THE RHNA 6 HOUSING ELEMENT FOR THE 2023-2031 PLANNING PERIOD AND COMPLY WITH RECENT CHANGES

IN STATE LAW AND FINDING THAT THE AMENDMENTS ARE WITHIN THE SCOPE OF THE

ENVIRONMENTAL IMPACT REPORT PREPARED UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) FOR THE HOUSING ELEMENT AND SAFETY ELEMENT UPDATE (SCH#2022010509). – RZ2024-0012

CITY OF FOSTER CITY PLANNING COMMISSION
WHEREAS, the Housing Element is an integral part of the Foster City General Plan that identifies the community’s housing needs, states the community’s goals and objectives regarding housing production, rehabilitation, preservation, and conservation to meet those needs, and defines the policies and programs; and
WHEREAS, Chapter 8, Housing Goals, Policies, and Programs of the Housing Element, forms the housing policy roadmap for the city and describes the implementation measures that the city needs to undertake in the planning period 2023-31; and

WHEREAS, these goals, policies, and programs aim to provide additional housing in a way that is balanced with the community’s desires to retain the aspects of Foster City that make it a great place to live, work, and play; and

WHEREAS, the Housing Element Programs include the City’s commitment to timeframes for implementation and the Annual Progress Report (APR) to the California Department of Housing and Community Development (HCD), due by April 1 of each year, reports on progress in implementation of these Programs; and

WHEREAS, amendments to Foster City Municipal Code, Title 17, Zoning are required for the implementation of the Housing Element programs, including, H-C-1-b, H-D-6-b, H-D-4-f, H-D- 6-c, H-E-9-a, H-E-9-b, H-F-2-e, and H-F-3-b for the year 2024; and

WHEREAS, on Sep tember 11, 2024, a Land Use S ubcommittee meeting was held to discuss the implementation of the Housing Element programs; and

WHEREAS, on September 19, 2024, a Planning Commission Study Session was held to review and discuss proposed amendments to Title 17, Zoning for the implementation of the Housing Element programs; and
WHEREAS, the proposed amendments to implement programs contained in the RHNA 6 Housing Element for the 2023- 2031 Planning Period are within the scope of the environmental impact report prepared for the Foster City Housing Element and Safety Element Update (SCH# 2022010509); and

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Resolution No. P-23-24
RZ2024-0012
WHEREAS, on October 2, 2024, a Notice of Public Hearing was duly posted for consideration of the amendments to Title 17, Zoning; and WHEREAS, the Planning Commission considered the proposed amendments to Title 17, Zoning, at a noticed Planning Commission public hearing on October 17, 2024; and WHEREAS, the Planning Commission of the City of Foster City has carefully reviewed and considered the staff report and all attachments thereto presented as part of the agenda for the public hearing regarding the proposed amendments to Title 17 Zoning of the Foster City Municipal Code, as well as the proposed CEQA finding, including any and all timely submitted correspondence, all information submitted at or prior to the public hearing, and all public comment and testimony presented at the public hearing (collectively, the “Record”); and NOW, THEREFORE BE IT RESOLVED that the Planning Commission, based on facts and analysis in the staff report, written and oral testimony, and exhibits presented, finds that:

1. The foregoing Recitals are true and correct and are incorporated herein by this reference; and

2. The pr
ovision of safe and stable housing for households at all income levels is essential for the public welfare of the City. Housing in Foster City, both rental and for-sale housing, has become steadily more expensive, and housing costs have gone up faster than incomes. Federal and state government programs do not provide enough affordable housing to satisfy the needs of very low -, low-, or moderate- income households. As a result, there is a severe shortage of adequate, affordable housing for very low-, low-, and moderate-income households, as evidenced by the findings in the City’s Housing Element; and

3. The proposed amendments to Title 17, Zoning, of the Foster City Municipal Code ar e
c
onsistent with the General Plan;

4. The proposed amendments to implement programs contained in the RHNA 6 Housi ng E
lement for the 2023- 2031 Planning Period are within the scope of the environmental impact report prepared for the Foster City Housing Element and Safety Element Update (SCH# 2022010509).

B
E IT FURTHER RESOLVED that the Planning Commission of the City of Foster City does hereby recommends that the City Council adopt the proposed amendments to Title 17, Zoning, as presented in the attached Exhibits A through J, as listed below and attached hereto and incorporated herein.
• Exhibit A: Chapter 17.04 Definitions
• Exhibit B: Chapter 17.16 RT Townhouse Residence District • Exhibit C: Chapter 17.18 R-3 Medium Density Multiple-Family Residence District • Exhibit D: Chapter 17.26 C-2 General Business District • Exhibit E: Chapter 17.28 CM Commercial Mix District
• Exhibit F: Chapter 17.32 PF Public Facilities District • Exhibit G: Chapter 17.62 Off-Street Parking Regulations

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Resolution No. P-23-24
RZ2024-0012

• Exhibit H: Chapter 17.76 Conversion Regulations
• Exhibit I: Chapter 17.78 Accessory Dwelling Units
• Exhibit J: Chapter 17. 86 Emergency Shelters, Low -Barrier Navigation Centers, and Supportive Housing.

PASSED AND ADOPTED as a Resolution of the Planning Commission of the City of Foster City at a Regular Meeting thereof held on October 17, 2024, by the following vote:

AYES, COMMISSIONERS: Jagtiani, Pedro, and Chair Haddad

NOES, COMMISSIONERS: Bronitsky, Venkat

ABSTAIN, COMMISSIONERS:

ABSENT, COMMISSIONERS:

______________________________________

NICOLAS HADDAD, CHAIR

ATTEST:

________________________________

SOFIA MANGALAM, SECRETARY

Nicolas Haddad (Nov 1, 2024 22:20 PDT)
Nicolas Haddad

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EXHIBIT A
Amendments to Chapter 17.04 Definitions
Chapter 17.04 Definitions of Title 17, of the Foster City Municipal Code is hereby amended to amend an existing definition as follows:

1. The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth.

2. Pets.

3. The storage of possessions.

4. Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms.

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17.16.020 Permitted uses.

The following uses shall be permitted in the R-T district:

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17.18.020 Permitted uses.

The following uses shall be permitted in the R-3 districts:

A. Multiple-family dwellings.

B. Accessory uses which are related to multiple-family dwellings.

C. Home occupations as defined in Section 17.04.250.

E. Accessory dwelling units in compliance with Chapter 17.78. (Ord. 674 § 2 (Exh. E), 2024)

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17.26.020 Permitted uses.

The following uses shall be permitted in the C-2 districts:

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17.28.030 Permitted uses.

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17.32.020 Permitted uses.

The following uses shall be permitted in the P-F districts:

B. Emergency shelters and low-barrier navigation centers for the homeless pursuant to Chapter 17.82.

C. Housing developments in conformance with Government Code Section 65913.16.

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EXHIBIT G
Amendments to Chapter 17.62 Off-Street Parking Regulations

Section 17.62.060.A.5 of Chapter 17.62 Off-Street Parking Regulations of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

17.62.060.D.3.
b. Guest parking shall be provided at a ratio of one-half0.25 off-street parking stalls per unit. A passenger drop-off zone provided per Section 17.62.095.A.4 could count towards five (5) guest parking spaces. However, in no case, may the guest parking reduction exceed five (5) spaces is permitted.
c. Notwithstanding the requirements for resident and guest parking, if a supportive housing development is located within one-half mile of a public transit stop, pursuant to California Government Code Section 65654, no minimum parking requirements shall be imposed.

Section 17.62.095 of Chapter 17.62 Off-Street Parking Regulations of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

17.62.095 Passenger drop-off zone requirements.

A. A minimum of one passenger drop-off zone shall be provided for the following:

1. Any new commercial, hotel, or office building constructed of forty thousand square feet or larger;

2. Any change in occupancy of any commercial or office building or the manner in which any use is conducted that would result in additional occupancy limits.

3. Any new residential building containing fifty or more dwelling units. (Ord. 674 § 2 (Exh. K), 2024)

4. Any senior citizens housing development containing five or more dwelling units.

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EXHIBIT H – Option B (No Lifetime Lease)
Amendments to Chapter 17.76 Conversion Regulations
Chapter 17.76 Conversion Regulations of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

Chapter 17.76
CONVERSION REGULATIONS*
Sections:
 17.76.010 Purpose.
 17.76.020 Definitions.
 17.76.030 General requirements.
 17.76.040 Requirements for tentative map and use permit approval. * Editor’s Note: The provisions of this chapter supersede Sections 16.36.030, 16.36.070, 17.16.020, 17.56.010, and 17.62.010 of this code insofar as these sections apply to rental apartment conversions.

17.76.010 Purpose.

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D. To reduce and avoid the impact of such conversions on existing and future low and moderate income residents of the community by attempting to maintain an adequate supply of rental housing which provides the majority of housing opportunity for lower and moderate income households. (Ord. 214 § 1 (part), 1981)

17.76.020 Definitions.

For the purposes of this chapter the words set out in this section shall have the following meanings:

B. “Association” means the organization of persons who own a lot, parcel, area, condominium or right of exclusive occupancy in a community housing project.

C. “Building official” means the chief building official of the city or the designee of the planning community development director.

D. “Common area” means an entire project excepting all residential dwelling units therein.

E. “Community apartment.” A “community apartment” is where an undivided interest in the land is coupled with the right of exclusive occupancy of any apartment located thereon.

H. “Conversion” means a proposed change in the type of ownership of a parcel or parcels of land from a use that is not a community housing or community housing project use, together

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with the existing or added structures, to any types of ownership defined under community housing and community housing projects regardless of the present or prior use of such land and structures and whether substantial improvements have been made or are to be made to such structures.

I. “Developer” means the owner or subdivider with a controlling proprietary interest in the community housing project, or the person or organization making application hereunder.

J. “Director” means the planning community development director of the city of Foster City or his/herthe director’s designee.

L. “Housing market area” means the area that includes the cities of Foster City, San Mateo and Belmont.

O. “Multiple family residential project” means a rental housing development consisting of five or more dwelling units attached to or within one structure.

Q. “Planned development” means a real estate development other than a community apartment project as defined in Section 11004 of the Business and Professions Code, a project

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consisting of condominiums as defined in Section 783 of the Civil Code, or a stock cooperative as defined in Section 11003.2 of the Business and Professions Code, having either or both of the following features:

The term “stock cooperative” does not include a limited-equity housing cooperative, as defined in Section 11003.4 of the Business and Professions Code or successor section.

17.76.030 General requirements.

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allowed number of apartment units eligible for conversion into units of a community housing project in the current fiscal calendar year. In the event the maximum permitted number of units is not converted in a given fiscal year, the surplus shall be carried over once to the following year to count towards the number of apartment units eligible for conversion.

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city, and any other matter deemed relevant by the city. The burden of proof shall be on the applicant to establish that on balance, the benefits to the community which will result from the specific proposal will substantially outweigh any detriments which may result.

B. Conformity with the General Plan. No conversion of multiple family rental units to ownership units shall be permitted unless and until the planning commission finds that the proposed conversion will not conflict with the goals and policies of the general plan, especially the housing element.

D. Tenant Notification.

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17.76.040 Requirements for tentative map and use permit approval.

1. That the tentative map and use permit are not consistent with applicable authorities as set forth in Section 17.76.030B;

2. That approval of the tentative map and use permit would be inconsistent with this chapter;

3. That the design or proposed improvements of the subdivision is likely to cause or sustain substantial environmental damage as defined by California Public Resources Code Section 21000 et seq.;

4. That there is an insufficient supply of affordable replacement units in the housing market area available to tenants who will be displaced as a result of the conversion; or

5. The application does not comply with any other provision of this chapter.

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5. Storage Requirements. Private, enclosed, weather-proofed and lockable outdoor storage space shall be provided for each dwelling unit according to the following schedule:

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No. of Bedrooms Minimum Space
in Cubic Feet
Studio or 1 150
2 200
3 250
The above space shall be provided in the garage or parking area or contiguous to each unit.

This requirement may be waived by the planning commission if it is determined that sufficient storage space exists to reasonably fulfill this standard.

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11. Legal Description. A complete legal description of the property shall be provided.

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16. Building History Report. The building history report shall be prepared to include the following:
a. The date of construction of all elements of the project; b. A statement of the major uses of said projects since construction; c. The date and description of each major repair of any element since the date of construction.

19. Copy of Application and Supplemental Questionnaire. The developer shall furnish:

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a. A true copy of each application submitted for issuance of a final public report to the department of Real Estate of the state of California for the project proposed for conversion including all attachments and exhibits thereto required by the department pursuant to Section 11011 of the Business and Professions Code;
b. A true copy of the statement of compliance (form 643 as amended) pursuant to 10 Cal. AD.

Code, Section 2792.9, or its successor, relating to operating and maintenance funds during start-up;
c. A statement whether the developer will provide any capital contribution to the association for deferred maintenance of the common areas, and if so, the sum and date on which the association will receive said sum; and
d. A true copy of the supplemental questionnaire for apartments converted to condominiums, community apartments, or stock cooperative projects submitted to the Department of Real Estate of the state of California for the project proposed for conversion, and shall include all attachments and exhibits thereto.

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Chapter 17.90. Said mitigating measures shall be equivalent to at least ten years multiplied by the difference between existing rent and rent for comparable replacement housing. d. Document the inclusion of tTenant protection provisions required by state law. e. Document the inclusion of tTenant protection provisions required by subsection 21 below.

21. Tenant Protection Provisions. The developer shall indicate he or shethey haves provided the following:
a. Lifetime Leases to Seniors and Handicapped Persons. The developer shall grant lifetime leases to all tenants who are sixty-two years of age and or older and/or handicapped. Such leases, to commence no later than the date of issuance of the final subdivision public report, shall be subject to the following conditions:
i. Tenants shall have the option of cancelling the lease at any time upon thirty days’ written notice to the owner;
ii. Tenants cannot be evicted except for just cause; iii. Right of occupancy shall be nontransferable;
iv. The first years’ base monthly rent for the unit shall be set at no more than the rent existing on the unit one year prior to the filing of the tentative map or tentative parcel map increased by no more than one hundred percent of the percentage increase in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland Metropolitan Area, All Items Index (Bay Area CPI) from the date one year prior to the filing of the tentative map or tentative parcel map to the effective date of the lifetime lease;
v. Subsequent rent adjustments, if any, may be made no sooner than one year from the effective date of the lifetime lease, shall be limited to no more than one per year, and the percentage increase in rent shall not exceed one hundred percent of the percentage increase in the Bay Area CPI for the most recent twelve-month period; vi. Except as provided hereinabove, terms and conditions of the lifetime lease shall be the same as those contained in tenant’s current lease or rental agreement. ab. Families with School Age Children. Families with minor children shall be granted lease extensions until thirty days after the expiration of the current school session. bc. Relocation Assistance. The developer shall provide monetary relocation assistance, equal to a minimum of two three months rent, to non-purchasing tenants, apportioned equally among the number of tenants in each unit.

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c. Non-monetary Relocation Assistance. The developer shall provide a free one-year subscription to a rental assistance services or relocation assistance services provider. d. Low and Moderate Income Housing. Ten percent of the units proposed for conversion shall be set aside for qualified low and moderate income rental or purchase or to the city or any such entity designated by the city or one percent of the gross sales must be contributed to the city. If rented, the developer shall indicate those units to remain as rentals and the methods of rent increases to ensure the availability of the units to remain as low and moderate income housing.

If purchased, prices are not to exceed three times the annual median income for low and moderate income households as currently defined by San Mateo County. If the tenant does not purchase the unit, the subdivider must make the unit available at that price to qualified low or moderate income households or a nonprofit housing agency or authority. The developer shall provide deed restrictions to ensure that any low or moderate income household which purchases a dwelling pursuant to this section shall grant a ninety day right-of-first-refusal to the city or any such other entity that at a future time may be designated by the city, to purchase the dwelling at a price based on the last purchase price plus the cost of any improvements paid for by the owner, plus an increase proportionate to the increases in the housing component of the Bay Area Cost of Living Index, U.S. Department of Labor over the intervening time period. The city or its designated agency shall reconvey such unit to other qualified low or moderate income purchasers if the right to purchase is exercised by the city or its designated agent. If the unit is not sold within twelve months to low or moderate income households or the city or its designated agent, the developer may sell to the general public at an unrestricted price.Moderate income housing shall be provided as required by Chapter 17.90 Below Market Rate Inclusionary Housing Program in the same quantity and the same standards as would be required for newly constructed dwelling units. Preferences for purchase of these units shall be based on the following preferences: 1) income qualified existing tenants that have at least one member of the household who is disabled, 2) income qualified existing tenants age 62 or older, 3) income qualified existing tenants with minor children, 4) all other income qualified existing tenants, and 5) all others in the preference order as established by the city to be applied citywide to below market rate units.

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E. Buyer Protection. The developer shall furnish each prospective purchaser of a unit, a true copy of the conditional use permit issued under this part and a copy of each of the following documents:

1. Property report;

2. Structural pest control report;

3. Property and structural report and building department report;

4. Building history report;

5. Statement of compliance (Form 643) pursuant to 10 Cal. AD. Code, Section 2792.9, or its successor, relating to operating and maintenance funds during start-up;

6. Soils report as determined in each case by the planning director;

7. The planning director’s letter certifying compliance.

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EXHIBIT I
Amendments to Chapter 17.78 Accessory Dwelling Units
Chapter 17.78 Accessory Dwelling Units of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

Chapter 17.78

ACCESSORY DWELLING UNITS

Sections:

17.78.010 Findings.

17.78.020 Purpose.

17.78.030 Application.

17.78.040 Definitions.

17.78.050 Permit application for an accessory dwelling unit.

17.78.060 Standards applicable to single-family residence zoning districts.

17.78.070 Standards applicable to multifamily residence zoning districts.

17.78.080 Parking requirements for accessory dwelling units.

17.78.090 Permit issuance.

17.78.100 Other provisions.

17.78.010 Findings.

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17.78.020 Purpose.

The purpose of this chapter is to allow accessory dwelling units in areas zoned to allow residential development through ministerial permit procedures in compliance with state laws. (Ord. 657 § 4 (Exh. P), 2023)

17.78.030 Application.

17.78.040 Definitions.

1. An efficiency unit.

2. A manufactured home, as defined in Section 18007 of the Health and Safety Code.

B. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.

F. “Efficiency unit” has the same meaning as defined in Section 17958.1 of the Health and Safety Code.

G. “High-quality transit corridor” means a corridor with fixed route bus service with service intervals no longer than fifteen minutes during peak commute hours.

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J. “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.”
IK. “Living area” means the interior habitable area of a dwelling unit including basements and attics but does not include a garage or any accessory structure or building.

JL. “Major transit stop” has the same meaning as defined in Section 21155 of the California Public Resources Code.

KM. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU.

17.78.050 Permit application for an accessory dwelling unit.

17.78.060 Standards applicable to single-family residence zoning districts.

The following shall apply to single-family lots in R-1, R-2 and R-1/PD zoning districts:

A. Number of Units. A single-family lot with a primary dwelling unit may have:

Option 1
One JADU (up to 500 SF); or

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Option 2
One ADU (conversion, attached, or detached); or
Option 3
One (1) JADU (up to 500 SF); and,
One (1) conversion ADU; and,
One (1) newly constructed ADU (up to 800 SF).

Option 4
One (1) JADU (up to 500 SF); and,
One (1) newly constructed ADU over 800 square feet
Option 5
One (1) JADU (up to 500 SF); and,
One (1) conversion ADU

B. Junior Accessory Dwelling Units.

4. A JADU shall be constructed within the walls of the proposed or existing single-family residence, including attached garages.

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6. The JADU shall include an efficiency kitchen, which shall include all of the following:
a. A cooking facility with appliances.
b. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

C. Attached ADUs. One attached ADU per single-family lot is permitted, subject to the following requirements:

2. Location. Attached ADUs shall not be located in the front yard unless development of an eight hundred (800 sq. ft.) square foot ADU is otherwise infeasible.

3. Setbacks. The side and rear setbacks shall be no less than four (4) feet.

5. Colors. An attached ADU or JADU shall use the same exterior wall and roof colors as the primary dwelling unit.

D. Detached ADUs. One newly constructed detached ADU per single-family lot is permitted, subject to the following requirements:

1. Size. The total floor area of a detached ADU shall not exceed one thousand two hundred (1,200) square feet or fifty (50) percent of the existing or proposed primary dwelling, whichever is less.

2. Location. Detached ADUs shall not be located in the front yard unless development of an eight hundred (800 sq. ft.) square foot ADU is otherwise infeasible.

3. Setbacks.

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a. The side and rear setbacks shall be no less than four feet. b. The separation between the detached ADU and the primary dwelling shall be as per California Residential Code.

4. Height. A detached ADU shall not exceed sixteen (16) feet in height, except in the following cases:
a. A height of eighteen (18) feet is permitted when an ADU is located within one-half mile walking distance of a major transit stop or a high-quality transit corridor, as defined in this code section; and, and additional two (2) feet of height to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

5. Colors. Detached ADUs shall utilize the same exterior wall and roof colors as the primary dwelling unit.

E. Conversion ADUs. One conversion ADU per single-family lot is permitted, subject to the following requirements:

Notwithstanding the provisions of this section, conversion ADUs shall provide sufficient side and rear setbacks for fire safety.

2. Height. A conversion ADU shall not alter the height of the existing structure (single-family dwelling, accessory building, or garage) that is being converted.

Any such expansion shall count towards the size of the ADU.

4. Colors. Conversion ADUs shall utilize same roof and exterior wall colors as the primary dwelling unit.

F. Additional Requirements. These requirements shall apply to all ADUs and JADUs on single-family lots:

1. All JADUs and ADUs shall provide exterior access that is separate from the proposed or existing single-family dwelling.

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Figure 1: ADU/JADU Window locations for privacy

4. Second floor balconies or decks. Second floor balconies, decks, or roof-top terraces facing another residential property are prohibited (applies only to new construction).

5. Exterior lighting. All exterior lighting shall be mounted no higher than seven feet (7’) from grade and directed downwards.

17.78.070 Standards applicable to multifamily residence zoning districts.

The following standards shall apply to multifamily dwelling lots in R-3, R-4, and R-T, C-2, and CM (with or without a planned combining district) zoning districts:

1. Number of ADUs. At least one ADU within an existing multifamily building and no more than twenty-five percent of the existing multifamily dwelling units shall be permitted.

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2. Size. The total floor area of a conversion ADU shall not exceed eight hundred fifty square feet for a studio or one bedroom, or one thousand square feet for an ADU with two or more bedrooms.

3. Existing livable space may not be converted into an ADU.

B. Detached ADUs.

1. Number of ADUs.
a. Up to two eight (82) detached ADUs are permitted on a multifamily lot with an existing, new, or proposed multifamily building. However, the number of ADUs allowable pursuant to this clause shall not exceed the number of existing dwelling units on the lot; or. b. On a lot with a proposed multifamily dwelling, not more than two (2) detached ADUs.

3. Setbacks.
a. The side and rear setbacks shall be no less than four (4) feet. b. The separation between the detached ADU and the primary dwelling shall be as per California Residential Code.

17.78.075 Standards applicable to Public Facilities (PF) zoning districts.

The following shall apply to lots in PF (with or without a planned combining district) zoning districts:

A. Number of ADUs. No more than four (4) ADUs and/or JADUs shall be permitted on properties owned or occupied by a religious institution or school use.

B. Conversion ADUs. ADUs are permitted within portions of existing legally permitted structures that are not used as livable space, subject to the following requirements:

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1. Size. The total floor area of a conversion ADU shall not exceed eight hundred fifty square feet for a studio or one bedroom, or one thousand square feet for an ADU with two or more bedrooms.

2. Existing livable space may not be converted into an ADU.

B. Detached and Attached ADUs.

2. Setbacks.
a. The side and rear setbacks shall be no less than four (4) feet. b. The separation between the detached ADU and the primary building shall be as per California Residential Code.

3. Height. Where an ADU is on a lot with an existing or proposed building, the height shall not exceed twenty-five (25) feet.

C. Additional requirements.

1. ADUs and JADUs shall comply with the standards in Section 17.78.060.F with references to primary residence applied to the primary building.

2. Colors. ADUs shall utilize the same exterior wall and roof colors as the primary building.

17.78.080 Parking requirements for accessory dwelling units.

B. Parking is not required in the following instances:

1. The ADU is located within one-half mile walking distance of public transit.

2. When there is an approved car share vehicle for which a Foster City business license has been issued and remains active, located within one block of the accessory dwelling unit.

3. JADU.

4. ADU that only includes a studio with no bedroom.

5. The ADU is located within an architecturally and historically significant area.

6. Where the ADU is part of the proposed or existing primary residence or an accessory structure. (Ord. 657 § 4 (Exh. P), 2023)

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17.78.090 Permit process.

The chief building official or his/her designee shall approve the ADU permit within 30 days from the date the local agency receives a completed application if the application either:

1. utilizes a plan for an accessory dwelling unit that has been preapproved by the local agency within the current triennial California Building Standards Code rulemaking cycle, or

C. A demolition permit for a detached garage that is to be replaced with an ADU, mut be reviewed with the application for the ADU and issued at the same time.

D. In conformance with Government Code section 65852.27, the City shall, by resolution, adopt a program for the preapproval of designs for ADUs, which may be amended from time to time.

Any application for an ADU utilizing a design plan for ADUs that has been preapproved pursuant to that program shall be approved or denied within thirty days.

17.78.100 Other provisions.

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than thirty consecutive days. Said deed restriction shall run with the land, and shall be binding upon any future owners, heirs, or assigns.

D. Any ADU may be leased for a period not fewer than thirty (30) consecutive days.

E. Fire flow and fire department access must comply with the California Fire Code as amended by the San Mateo Consolidated Fire Department, or an alternate means shall be proposed.

F. Fire Sprinklers.

1. An ADU shall not be required to provide fire sprinklers if they are not required for the primary residence and may employ alternative methods for fire protection.

2. The construction of an ADU shall not trigger a requirement of fire sprinklers to be installed in the existing primary dwelling.

G. ADUs that are seven hundred fifty square feet or smaller are exempt from impact fees.

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EXHIBIT J
Chapter 17.82 Emergency Shelters, Low-Barrier Navigation Centers, and Supportive Housing of Title 17, Zoning, of the Foster City Municipal Code is hereby amended as follows:

Chapter 17.82

EMERGENCY SHELTERS, LOW-BARRIER NAVIGATION CENTERS, AND SUPPORTIVE

HOUSING
Sections:
 17.82.010 Findings.
 17.82.020 Purpose.
 17.82.030 Permit required.
 17.82.040 Performance standards.
 17.82.050 Definitions.

17.82.010 Findings.

17.82.020 Purpose.

A. The purpose of the emergency shelter regulations is to provide standards that will encourage and facilitate the development of, or conversion of existing facilities to, an emergency shelter.

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17.82.030 Permit required.

A. Low-Barrier Navigation Centers. A planning permit is required prior to establishment of any low-barrier navigation center project. Within thirty days of receipt of an application for a low- barrier navigation center development, the local jurisdiction shall notify a developer whether the developer’s application is complete pursuant to Government Code Section 65943. Within sixty days of receipt of a completed application for a low-barrier navigation center development, the local jurisdiction shall act upon its review of the application.

1. Supportive housing projects if all of in all zones where multifamily and mixed uses are permitted.

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f6. Units within the development, excluding manager unit(s), include at least one bathroom and a kitchen or other cooking facilities, including, at minimum, a stovetop, a sink, and a refrigerator. (Ord. 666 § 3 (Exh. B), 2023; Ord. 657 § 4 (Exh. Q), 2023)

17.82.040 Performance standards.

1. Maximum Number of Persons/Beds. An emergency shelter shall contain a maximum of twenty-five beds and shall serve no more than twenty homeless persons.

5. Proximity to Other Shelters. No emergency shelter shall be located within three hundred feet of another emergency shelter.

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community development director. The alternate lighting plan must provide adequate external lighting for security purposes. The lighting shall be stationary, directed away from adjacent properties and public rights-of-way, and of intensity compatible with the neighborhood.

B. A low-barrier navigation center development is a use by right in certain zones, if it meets the following requirements:

1. Connected Services. It offers services to connect people to permanent housing through a services plan that identifies services staffing.

3. Code Compliant. It complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.

C. Supportive housing projects shall comply with all the following standards:

1. The project may shall be required to comply with any written objective standards or policies also required of multifamily developments in the same zone.

17.82.050 Definitions.

The following definitions shall pertain to this section only:

A. Lower Income Households. This term shall have the same meaning as defined in Section 50079.5 of the Health and Safety Code.

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C. Target Population. Persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by Section 11139.3(e)(2) of the Government Code. (Ord. 666 § 3 (Exh. B), 2023; Ord. 657 § 4 (Exh. Q), 2023)

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CITY OF FOSTER CITY

LAND USE SUBCOMMITTEE

MEETING MINUTES
WEDNESDAY, SEPTEMBER 11, 2024, 3:00 PM

SPECIAL MEETING

1. CALL TO ORDER
The meeting was called to order at 3:00 pm.

2. ROLL CALL
Senior Management Analyst Becki Hanan
PRESENT: Committee Member Jon Froomin and Committee Member Sam Hindi
ABSENT: None
STAFF: Sofia Mangalam, Community Development Director; Leslie Carmichael, Consultant Planner; Monica Ly, Planning
Manager

3. PUBLIC COMMENTS
None

4. APPROVAL OF MINUTES

4.1 May 9, 2024 Land Use Subcommittee Meeting Minutes

4.2 July 11, 2024 Land Use Subcommittee Meeting Minutes

5. REPORTS
None

6. OLD BUSINESS

1. HOUSING ELEMENT 2023-201 IMPLEMENTATION FOR THE YEAR 2024.

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Director Mangalam provided background for Housing Element Implementation Consultant Planner Carmichael discussed the first code amendment:

H-C-1-b Amend Percentage of BMR Units in Conversions.

Committee Members had the following comments:

Consultant Planner Carmichael advised the program in the housing element aims to review the percentage of inclusionary housing, which is currently set at 10% for low and moderate-income households or 1% of gross sales contributed to the city.

Consultant Planner Carmichael suggested referencing the Inclusionary Chapter for apartment-to-condominium conversions, requiring 15% inclusionary housing for moderate-income units while keeping other administrative details unchanged.

Committee member Froomin asked if the current for-sale unit is 20%.

Consultant Planner Carmichael confirmed that 20% applies to moderate units.

Consultant Planner Carmichael noted the goal of clarifying subjective language, such as the director's ranking of applications based on subjective factors when multiple applications are received.

Committee member Froomin questioned why rent items are listed when converting to for-sale units but acknowledged that conditions might change at the time of application.

Committee member Froomin inquired about time limits for the process, expressing concerns over whether it might take more than a year.

Consultant Planner Carmichael clarified that tenants would need 180 days' notice before termination, though additional time may be needed for reporting on building conditions for potential buyers.

Committee member Froomin noted the potential loss of rental income during the conversion period.

Consultant Planner Carmichael responded that tenants would continue paying rent, though rent increases would not be allowed during this time.

Committee member Froomin raised concerns about offering lifetime leases when units are being converted.

Consultant Planner Carmichael explained that while developers retain ownership or sell the units, tenants could maintain lifetime leases.

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Director Mangalam mentioned that the provisions for lifetime leases are being reviewed with the city attorney.

Committee members Froomin and Hindi asked about relocation options for tenants with lifetime leases.

Committee member Hindi also questioned how the process would proceed if a developer had to retain more than half of the lifetime lease tenants.

Committee member Froomin suggested increasing relocation assistance, particularly for older tenants with limited income.

Consultant Planner Carmichael responded that tenants could choose between accepting a lifetime lease or relocation assistance.

Consultant Planner Carmichael noted a provision allowing CPI-based increases for lifetime leases.

Committee member Froomin suggested researching relocation assistance, even if it’s not mandated state law, because otherwise, it would be unrealistic.

Committee member Hindi supported further research to ensure that the timeframe for relocation is based on realistic data rather than an arbitrary number of months.

Committee member Froomin emphasized that older tenants (62 and above) or those with disabilities might require more time and have higher moving expenses than younger tenants.

Committee member Hindi questioned whether the age threshold of 62 was appropriate, suggesting that it might be more about income than age.

Director Mangalam agreed that more research is needed before finalizing language for age-based provisions, noting that adjustments could lead to better protections.

Committee member Froomin proposed creating separate categories for tenants based on financial ability and handicap status rather than age.

Director Mangalam highlighted that, due to the aging population being a key factor, staff recognized the importance of including additional protections.

Committee member Froomin suggested that we should find a way to add it in an objective manner, possibly by basing it on income range.

H-D-4-f Objective Design Standards for ADUs.

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Consultant Planner Carmichael discussed objective design standards for ADUs, such as adjusting window placement to avoid privacy issues.

Committee member Froomin asked whether ADUs should match the appearance of the primary house and expressed concern about provisions related to window frames.

Director Mangalam replied that the roof, exterior walls, and colors would need to match the primary house, not getting into the other details.

Director Mangalam responded that the focus is on matching the roof, exterior walls, and colors of the ADU with the primary house without addressing details like window frames.

Committee member Froomin questioned the need for concerns about glazing and sill height, noting that many existing homes don’t meet these requirements.

He suggested that a six-foot fence would likely block the view of first-floor windows, making the requirement unnecessary.

Director Mangalam agreed and confirmed that the first-floor requirement could be removed, but the obscured glazing requirement would remain for second-story windows.

Committee member Froomin agreed that a balcony should not be included in ADUs due to privacy.

H-D-6-c Amend Parking Requirements.

Director Mangalam noted that the current parking requirement for senior housing is 0.5 spaces per bedroom, not per unit, and 0.5 spaces per unit for guest parking.

Committee member Froomin suggested adding a requirement for designated passenger/loading or delivery parking spaces.

Committee member Hindi reminded the committee that some senior housing facilities also provide shuttle bus services.

H-D-6-b Minimize Zoning Constraints and H-E-9-a Family Friendly Housing.

Committee member Froomin suggested creating a program that offers more credits for multi-family housing, noting that without incentive, adding space can become more costly and more of a hindrance.

Committee member Hindi added that offering amenities could be seen as a positive feature, as many people value having access to them.

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Committee member Froomin proposed that awarding points for adding amenities could encourage developers to include them, making it less of a financial burden or impediment.

H-F-2-e Low Barrier Navigation Centers.

Committee member Froomin asked staff whether there is currently supportive housing in these zones and if there is a requirement to add more zones.

Director Mangalam confirmed that supportive housing has been included in some districts previously, and now they are adding it to the R-T, R-3, R-4, C-2, and CM/PD districts.

7. NEW BUSINESS
None

8. ADJOURNMENT
The meeting was adjourned at 3:55 p.m.

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4 DATE:November 18, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
FROM: Priscilla Schaus, Communications Director/City Clerk Benjamin L. Stock, City Attorney
DEPARTMENT: Communications/ City Clerk
SUBJECT: TO START AT A TIME CERTAIN OF 7:00 P.M. -

FOURTH PUBLIC HEARING TO RECEIVE COMMUNITY INPUT

AND COUNCIL DIRECTION REGARDING THE SUBMITTED

DRAFT DISTRICT MAPS AND SEQUENCE OF ELECTIONS FOR

DISTRICT-BASED COUNCIL ELECTIONS AND INTRODUCTION

OF ORDINANCE TO PROVIDE FOR THE ELECTION OF
COUNCILMEMBERS BY FIVE DISTRICTS; ESTABLISH DISTRICT

BOUNDARIES AND ELECTION ORDER OF DISTRICTS

RECOMMENDATION
It is recommended that the City Council take the following actions:
1) Conduct the fourth public hearing to receive community input and provide direction to staff regarding the submitted draft maps and sequence of elections for district-based council elections;
2) Select a District Map;
3) Select the two District Seats to be up for election in 2026 (with the remaining District seats to be up for election in 2028); and
4) Introduce and waive further reading of an Ordinance of the City Council of the City of Foster City Amending Title 2 “Administration and Personnel” of the Foster City Municipal Code to Add Section 2.56.025 “District Elections” to Provide for the Election of Members of the City Council by Five Districts; Establish the District Boundaries; and Election Order of Each District.

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4 EXECUTIVE SUMMARY
On August 19, 2024, the City Council discussed a letter received from a potential plaintiffs’ attorney, Shenkman & Hughes PC, on July 22, 2024, alleging a violation of the California Voting Rights Act (the “CVRA”)1 and threatening litigation if the City declines to voluntarily change to a district-based election system for electing Councilmembers.

While the Council strongly disagreed with the allegations in the letter, a majority of the Council gave direction to staff to proceed with agendizing the Resolution of Intent in order to take advantage of the safe harbor provisions of Elections Code Section 10010 and avoid costly litigation.

At the September 3, 2024, Council meeting, the Council adopted City Resolution No. 2024-91 to transition to district-based elections, to allow the City to take advantage of the safe harbor provisions of Elections Code Section 10010.

On October 7, 2024 and October 21, 2024, the City Council conducted the first and second public hearing to receive input regarding the composition of the districts and sequencing of the elections.

On November 4, 2024, the City Council conducted the third public hearing to receive community input and provide direction to staff regarding the submitted draft maps and sequence of elections for district-based council elections. At that meeting, the Council reviewed the draft maps submitted by the public and the City’s demographer, Redistricting Partners, and provided direction to staff and the demographer regarding the various maps, including Draft Map B submitted by Redistricting Partners.

The public hearings must be scheduled to start at a time certain if it is consolidated with a regular or special meeting of the governing body that includes other substantive agenda items, to begin at a fixed time regardless of its order on the agenda.

BACKGROUND
The City of Foster City currently elects its Councilmembers at-large, which means that each Councilmember is elected by the registered voters of the entire City.

The CVRA was enacted in 2001, in part, to provide minority groups in California with tools to prevent dilution of votes in “at-large” election systems and is more expansive than the Federal Voting Rights Act of 1965 (“FVRA”). An at-large method of election may not be imposed or applied in a manner that impairs the ability of a protected class to elect candidates of its choice or its ability to influence the outcome of an election, as a result of the dilution or the abridgement of the rights of voters who are members of a protected class.2 A violation of the CVRA is established if it is shown that racially polarized voting occurs in elections for members of the governing body or in elections incorporating other electoral choices by the voters of the political subdivision.3 Any voter who is a member of a protected class and who resides in a political subdivision where a violation of the CVRA 1 Cal. Elec. Code §§ 14025-14032.
2 Cal. Elec. Code §§ 14026 and 14027.
3 Cal. Elec. Code §14028(a); see also § 14027.

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4 is alleged may file an action in the superior court in which the political subdivision is located.4
Pursuant to Elections Code Section 10010, a city may rely on the “safe harbor” provisions that allows a city to adopt a resolution outlining its intention to transition from at-large to district-based elections within forty-five (45) days of receiving a demand letter from a potential plaintiffs’ attorney.5 These “safe harbor” provisions allow a city to transition in accordance with a statutory timeline and, if followed, insulate a city from litigation arising from alleged CVRA violations and caps attorneys’ fee liability to a maximum of $30,000.6 Under those “safe harbor” provisions, a prospective plaintiff is required to send a written notice to the clerk of a city asserting that the city’s method of conducting elections may violate the CVRA.7 A forty-five (45) day stay is then imposed on a prospective plaintiff’s ability to bring an action.8 That forty-five (45) day stay allows a city to adopt a resolution outlining its intention to transition from at-large to district-based elections.9 If a resolution of intention is adopted by a city council to move to district-based elections, a prospective plaintiff may not commence an action within ninety (90) days of the resolution of intention’s passage.10
Since the Council adopted City Resolution No. 2024-91 to transition to district-based elections on September 3, 2024, a prospective plaintiff may not commence an action within ninety (90) days of the resolution of intention’s passage.

Staff has prepared a tentative timeline, which identifies the preliminary schedule for the required public hearings and public outreach, which complies with Elections Code Section 10010 (Attachment 1). This timeline may change depending on the level of community involvement and the complexity of the map drawing process. If the timeline needs to adjust beyond the 90 days, then the City may enter into a written agreement to extend the 90-day period up to an additional 90 days in order to provide additional time to conduct public outreach, encourage public participation, and receive public input.11 Transition to District Based Elections: First and Second Public Hearings As a part of the transition process, the City is required to hold at least two public hearings over a period of no more than 30 days, at which the public is invited to provide input regarding the communities of interest that would help to define the composition of the districts.12
4 Cal. Elec. Code §14032.
5 Cal. Elec. Code § 10010(e)(2).
6 Cal. Elec. Code § 10010(f)(1)-(3).
7 Cal. Elec. Code § 10010(e)(1).
8 Cal. Elec. Code § 10010(e)(2).
9 Cal. Elec. Code § 10010(e)(1)-(3).
10 Cal. Elec. Code § 10010(e)(1)-(3).
11 Cal. Elec. Code § 10010(e)(3)(C)(i).
12 Cal. Elec. Code § 10010(a)(1).

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4 The Fair Maps Act defines a “community of interest” as a population that shares common social or economic interests that should be included within a single election district for purposes of its effective and fair representation. Characteristics of communities of interest may include, but are not limited to, shared public policy concerns such as education, public safety, public health, environment, housing, transportation, and access to social services. Characteristics of communities of interest may also include, but are not limited to, cultural districts, shared socioeconomic characteristics, similar voter registration rates and participation rates, and shared histories. Communities of interest do not include relationships with political parties, incumbents, or political candidates.

The City conducted the initial two public hearings on October 7, 2024 and October 21, 2024. At the first and second public hearings, the Council received a report from the City’s demographer, Redistricting Partners, about the basics of the districting process and identifying communities of interest. The video and presentation from the first and second meeting can be found on the City’s dedicated redistricting webpage which can be found here: https://www.fostercity.org/community/page/transition-district-elections.

The City has received thirteen submissions of the Community of Interest forms which were posted on the City’s website. The responses from those thirteen submissions are summarized as follows:
•Four people submitted testimony requesting to not transition to district elections; •Encouraged the City Council to base criteria on three things: 1) geographic proximity; 2) dwelling type; and 3) traffic and noise;
•Homeowners Association Consideration;
•School boundary consideration;
•Renters;
•Lagoon homes (multiple submissions); and
•Elementary School communities (multiple submissions, including a specific reference to Brewer Island.
•San Mateo County Association of REALTORS’s market areas Community of Interest forms submitted as of November 13, 2024 are attached as Attachment 2.

Transition to District Based Elections: Third and Fourth (and Fifth) Public Hearings The City must hold at least two additional hearings over a period of no more than 45 days, at which the public is invited to provide input regarding the content of the draft maps and the proposed sequence of elections. The third public hearing was held on November 4, 2024. At the third public hearing, the City Council provided direction to the demographer that the preference was to use Draft Map B as a basis for revised maps. It was further directed for the demographer to create a live edit Draft Map B2 which divided the northern business district of the City into separate districts. Direction was also given for the demographer to create an additional map with revisions to Draft Map B to include maintaining as a community of interest, Asian Citizen Voting Age Population (CVAP) in

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4 District 1.

This fourth public hearing on November 18th will also be held to review the submitted draft district maps and for the Council to receive public input on the draft maps and the sequence of elections. A fifth public hearing would be held to adopt the selected map. If the proposed Ordinance is introduced at this meeting on November 18, 2024, the second reading and adoption can take place at a fifth public hearing on December 2, 2024. If the Council cannot select a map or requests further revisions to a draft map at the November 18, 2024 meeting, then the Council will hold a fifth public hearing on November 25, 2024 at 6:30 p.m. to continue consideration of the draft maps and potentially introduce the ordinance at that meeting, with a second reading and adoption of the ordinance scheduled for December 2, 2024.

The City will need to comply with the Fair and Inclusive Redistricting for Municipalities and Political Subdivisions (Fair Maps) Act in adopting the districts,13 which provides criteria that the City must utilize when establishing election district boundaries or when undertaking the redistricting process (which must occur every ten years after each population census). These criteria are summarized below. (a) The election districts must be substantially equal in population based on the most recent census.
(b) The districting body shall adopt election district boundaries that comply with the United States Constitution, the California Constitution, and the federal Voting Rights Act of 1965 (52 U.S.C. Sec. 10301 et seq.) and consistent with the federal Voting Rights Act, the districting body shall determine whether it is possible to create an election district or districts in which a minority group is sufficiently large and geographically compact to constitute a majority in a single-member district, as set forth in Thornburg v. Gingles, 478 U.S. 30 (1986).
c) The districting body shall adopt election district boundaries using the following criteria as set forth in the following order of priority:
(1) To the maximum extent practicable, election districts shall be geographically contiguous. Areas that meet only at the points of adjoining corners are not contiguous. Areas that are separated by water and not connected by a bridge, tunnel, or regular ferry service are not contiguous. (2) To the maximum extent practicable, and where it does not conflict with the preceding criterion, the geographic integrity of any local neighborhood or local community of interest shall be respected in a manner that minimizes its division.
(3) To the maximum extent practicable, and where it does not conflict with the preceding criteria, election districts shall be bounded by natural and artificial barriers, by streets, or by the boundaries of the local jurisdiction. Election district boundaries should be easily identifiable and understandable by residents.
13 Cal. Elec. Code § 21100 et seq.

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4 (4) To the maximum extent practicable, and where it does not conflict with the preceding criteria, election districts shall be drawn to encourage geographical compactness in a manner that nearby areas of population are not bypassed in favor of more distant populations.
(d) The districting body shall not adopt election district boundaries for the purpose of favoring or discriminating against an incumbent, political candidate, or political party.14
Within 21 days of adopting final election district boundaries, the City Council will be required to issue a report that explains the basis on which it made its decisions in achieving compliance with the requirements and criteria of the Fair Maps Act, including, as to each neighborhood, community of interest, city, or census designated place that was split into two or more districts, the reason for that split.15

ANALYSIS
At this fourth public hearing on November 18th, the community and the City Council will consider the draft maps that have been submitted by members of the public and the maps that have been prepared by Redistricting Partners. All of the maps are available on the City’s website:https://www.fostercity.org/community/page/transition-district-elections.

The maps that have been submitted by members of the public through the City’s “Districtr” mapping tool are identified by a numerical identification number (e.g., ID 258150), the maps that were submitted via email or outside of “Districtr” are identified as “Public Map…” and the maps that have been prepared by Redistricting Partners are identified by a letter (e.g., Draft Map A).

The City must publish the maps that will be considered at a public hearing seven days in advance of the meeting. Due to the Veteran’s Day holiday, the draft maps that will be considered at the third public hearing were published on November 8, 2024.

Redistricting Partners has prepared a second FAIR MAPS Act Assessment (“Assessment”) of the four maps submitted by members of the public between the third public hearing and this fourth public hearing. (Attachment 3). This Assessment analyzed all of the ranked list of criteria pursuant to the FAIR MAPS Act in the order required (i.e., population size deviation is under 10%, contiguous, maintains “communities of interest”, easily identifiable and understandable lines, compact, etc.). However, as indicated in the Assessment, Redistricting Partners can assess all criteria objectively except for “maintaining communities of interest”. That particular criterion is subjective by definition and should be discussed by the City Council and public at this meeting to determine how well the draft maps fulfil this criterion.

With regard to the maps prepared by Redistricting Partners, a summary of each of the maps is provided below to summarize some of the relevant aspects of those maps:
14 Cal. Elec. Code § 21130 (a)-(d).
15 Cal. Elec. Code § 21130(f).

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4 Draft Map B2 Live Edit
Total Population Deviation: 4.5%
Draft Map B2 Live Edit is based on Draft Map B which was discussed and edited at the Council meeting on November 4, 2024. Draft Map B was inspired by Public Map 1 and drawn in a way that balanced that public map while maintaining Homeowners Associations (HOAs), when possible.
•District 1: Consists of the southern portion of the City, using main roads (Beach Park Blvd, Edgewater Blvd, and Foster City Blvd) and waterways. Due to population balance and the requirement of following census blocks given to us by the US Census Bureau, minor roads were used as dividers, as well. One HOA (Marina Point) has a minor split consisting of a parking lot and tennis courts. All residents of Marina Point are maintained in District 1. •District 2: Consists of the middle southern portion of the City, predominantly using waterways as dividers. District 2 crosses Foster City Blvd in order to achieve balanced population.
•District 3: Consists of the eastern portion of the City commonly found in publicly drawn maps.
•District 4: Consists of the middle northern portion of the City commonly found in publicly drawn maps.
•District 5: Consists of the western portion of the City and uses main roads (Shell Blvd, Foster City Blvd, Beach Park Blvd, and Edgewater Blvd) and waterways when possible. Minor roads were used as dividers to ensure population balance.

Draft Map B3
Draft Map B3 is also a map based on Draft Map B, and ensures maintaining as a community of interest, Asian Citizen Voting Age Population (CVAP) in District 1, as instructed by the City Council.

Total Population Deviation: 7%
•District 1: Consists of the southern portion of the City, using main roads (Beach Park Blvd, and Foster City Blvd) and waterways. Due to population balance and the requirement of following census blocks given to us by the US Census Bureau, minor roads were used as dividers, as well. Two HOAs (Harbor Side and Shell Cove) had minor splits.
•District 2: Consists of the middle southern portion of the City, predominantly using waterways as dividers. This district maintains the bulk of the Harborside HOA. •District 3: Consists of the eastern portion of the City commonly found in publicly drawn maps. This district needed to cross Foster City Blvd in order to achieve population balance.
•District 4: Consists of the middle northern portion of the City commonly found in publicly drawn maps, and uses Foster City Blvd as a logical divider. In order to balance the population, District 4 picked up a census block below East Hillside Blvd.
•District 5: Consists of the western portion of the City and uses main roads (Foster City Blvd) and waterways when possible. Minor roads were used as dividers to ensure population balance. This district maintains the bulk of the Shell Cove HOA.

On November 18, 2024, the Council will continue to hear public comments concerning the

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4 proposed maps. Members of the public are invited to provide input regarding the content of the publicly submitted draft maps and the maps prepared by Redistricting Partners at the third public hearing. The Council and members of the public can also provide input on the sequence of elections, if desired.

Proposed Ordinance
If the Council is able to select a map at this meeting on November 18, 2024 and does not make any further revisions to the selected map, the City Council can proceed with selecting the two district seats that will be up for election in 2026 and the three district seats that will be up for election in 2028. Once the map and the sequencing are selected, the Council can proceed with introduction of the proposed Ordinance (Attachment 4).

The proposed Ordinance would amend Title 2, Chapter 2.56 of the Foster City Municipal Code to add a new section 2.56.025, “District Elections” and would provide for the election of Councilmembers by establishing five districts and identify the district boundaries by including the map in the ordinance. The proposed Ordinance would also specify that the commencement of the district elections shall be in the next general municipal election in 2026 and provide for two seats being elected in 2026 and three seats in 2028 to ensure all incoming and currently seated Councilmembers’ do not have shortened terms. Finally, the proposed Ordinance authorizes Redistricting Partners to make non-substantive, technical adjustments to the map as necessary to prepare a GIS shapefile, which will be submitted to San Mateo County by the City Clerk.

If the proposed Ordinance is introduced at this meeting, the second reading and adoption can take place at the meeting on December 2, 2024. If the Council cannot select a map or requests further revisions to a draft map at the November 18, 2024 meeting, then the Council will hold a fifth public hearing on November 25, 2024 at 6:30 p.m. to continue consideration of the draft maps. Draft maps to be considered at the November 25, 2024 meeting would be published on November 18, 2024 to meet the 7-day publishing deadline.

Outreach Efforts
City staff regularly notifies residents of meetings and other engagement opportunities by posting on social media channels such as the City’s Facebook, Twitter, and Nextdoor pages, as well as attending community events, sending printed mailers, promoting in the City newsletter, and hosting community workshops. Social media posts sharing information regarding the City Council’s consideration of adopting a resolution of intent to transition from at-large to district-based elections began days after the August 19 meeting, and continues. These efforts include updating the nature of the outreach material throughout the process to encourage the community to get involved by submitting community of interest forms, drawing district maps, reviewing submitted maps, providing public comment, and more.

Printed outreach material notifying residents of the meetings has been placed in City Hall as well at kiosks posted along the Levee, and other City facilities. Digital content has also been posted on the marquee and posting boards at the Council Chambers and Library.

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4858-6094-6679 v1
7 6
4 The two printed mailers sent to each residential address in Foster City promoted participation in the Community Workshops and invited community members to attend the public hearings. Outreach material such as the mailers, website, and other printed documents have been translated to Mandarin as well.

To grant ample opportunities for residents and community members to have their voice heard, City staff have attended a variety of community events including the following:
•September 20, 8:30am-10am: Second Harvest Food Bank Free Grocery Program at the Foster City Library.
•September 21, 9am-11:00am: Community Bike Ride at Booth Bay Park. •September 28, 9am-11am: Foster City Farmers Market at 1010 Metro Center Blvd. •September 29, 10am-12pm: Clean Air Day celebration at the Foster City Library. •October 2, 5pm-7pm: Off the Grid at Leo Ryan Park.
•October 6, 11am-1pm: Baybasi Autumn Festival at Leo Ryan Park. •October 16, 5pm-6:30 pm: Off the Grid at Leo Ryan Park •October 19, 9am-11am: Foster City Farmers Market at 1010 Metro Center Blvd. •October 23, 5pm-6:30pm: Off the Grid at Leo Ryan Park. •October 26, 11am-12:30pm: Foster City Halloween Festival at Leo Ryan Park. •October 30, 5pm-6:30pm: Off the Grid at Leo Ryan Park. •November 1, 8:30 am-10:00 am: Second Harvest Food Bank Free Grocery Program at the Foster City Library.
•November 2, 10am-11:30 am: Friends of the Library Book Sale at the Foster City Library.
•Wednesday, November 6, 10am-11:30am: Baby Bounce Story Time at the Foster City Library.
•Thursday, November 7, 11am-12:30pm: Starbucks at 780 Alma Lane. •Friday, November 15, 8:15am-10:00am: Second Harvest Food Bank Free Grocery Program at the Foster City Library.
•Sunday, November 17, 11am-12pm: Indian Classical Dance Show at the Foster City Library.

City staff and the consultant also hosted workshops on October 20, 2024, and November 13, 2024, which were well attended. The workshops were held in a hybrid format for in- person attendance at the Council Chambers and online via Zoom, and the videos were also recorded and uploaded to the City’s YouTube channel for on-demand playing.

The City has created a website dedicated to this district transition process which can be found here:
https://www.fostercity.org/districtelections.

Information is available on the City’s website that provides the public with background information about the districting process, upcoming hearing dates, and supporting documents. This webpage will be continuously updated with dates and locations where community members can share their feedback on this issue.

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4 CALIFORNIA EQUALITY QUALITY ACT
This item does not constitute a project as defined by the California Environmental Quality Act (Public Resources Code § 21000, et seq.) (CEQA) as the adoption of the resolution does not have the potential to result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment (14 Cal. Code Regs. § 15378.).

FISCAL IMPACT
There is no direct fiscal impact associated with this action. By transitioning to district-based elections, the costs that potential plaintiff’s attorney will receive is capped at $30,000. The City will also pay the demographer for their services, which totals $49,500.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
City Council Operations and Improved Community Engagement

ATTACHMENTS
Attachment 1 – Tentative Timeline
Attachment 2 – Communities of Interest Forms
Attachment 3 – Redistricting Partners FAIR MAPS Assessment November 8, 2024 Attachment 4 – Proposed Ordinance

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2 5
4 9
Tentative Timeline for Consideration and Implementation of District-Based Elections Date Event Code § Comment
July 22,
2024
City received certified
demand letter from
Shenkman & Hughes
EC§10010(e)(1) Before commencing an action to enforce Sections 14027 and 14028, a prospective plaintiff shall send by certified mail a written notice to the clerk of the political subdivision (“City’) against which the action would be brought asserting that the City’s method of conducting elections may violate the California Voting Rights Act of 2001.

EC§ 10010(e)(2) A prospective plaintiff shall not commence an action to enforce Sections 14027 and 14028 within 45 days of the City’s receipt of the written notice described above (CVRA lawsuit cannot be commenced until September 5, 2024.)
9/3/24 Resolution is
considered at City
Council Meeting
EC§ 10010 (3)(A) Within 45 days of receipt of a notice, the City may pass a resolution outlining its intention to transition from at-large to district-based elections, specific steps it will undertake to facilitate this transition, and an estimated time frame for doing so (Resolution to be considered no later than September 5, 2024)
9/3/24 Resolution is adopted
at City Council
Meeting
EC§ 10010(e)(3)(B) If the City begins the process of switching to districts within 45 days and adopts a resolution to that effect a potential plaintiff cannot commence an action within 90 days of the resolution’s passage. (CVRA lawsuit cannot be commenced until December 3, 2024) TBD Conduct public
outreach, encourage
public participation,
and receive public
input
EC§ 10010(a)(1) Before public hearings, the City may conduct outreach to the public, including to non- English-speaking communities, to explain the districting process and to encourage public participation. I.e. farmers market, public library, public schools, places of worship, homeowners associations, and community organizations
10/7/24 1st Public Hearing
(Regular Meeting)
EC§ 10010(a)(1) First and second public hearings must occur within a period of 30 days.

No maps for review, but take public comments on composition of districts and preference for district lines.
10/21/24 2nd Public Hearing
(Regular Meeting)
EC§ 10010(a)(1) No maps for review, but take public comments on composition of districts and preference for district lines.
10/28/24 Publish for review
first drafts of district
election maps and
potential sequence of
elections
EC§ 10010(a)(2) After all draft maps are drawn, at least 7 days before the 3rd public hearing, the City shall publish and make available for release at least one draft map and, if city councilmembers will be elected in their districts at different times to provide for staggered terms of office, the potential sequence of the elections.

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233

2 5
4 9
11/4/24 3rd Public Hearing
(Regular Meeting)
EC§ 10010(a)(2) The City shall also hold at least two additional hearings over a period of no more than 45 days, at which the public is invited to provide input regarding the content of the draft map or maps and the proposed sequence of elections, if applicable. 11/11/24 Post any new or
amended maps
EC§ 10010(a)(2) Maps available for review at least 7 days before consideration at the 4th public hearing. 11/18/24 4th Public Hearing
(Regular Meeting)
EC§ 10010(a)(2) Take public comments on proposed maps. If selected map is amended, ordinance cannot be introduced until 7 days after amended map is published Council may introduce ordinance if final map is selected at this public hearing 11/25/24 or
12/2/24

DEADLINE
12/2/24
(Special) 5th Public
Hearing
or
Regular Meeting
EC§ 10010(e)(3)(B) Council introduces ordinance establishing district elections, including district boundaries and election sequence if map is changed at 11/18/24 meeting.

Council adopts ordinance

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234

Published on Foster City California (https://www.fostercity.org) Home Tell Us About Your Community of Interest Webform results Submission #1 Submission information
Form: Tell Us About Your Community of Interest [1]
Submitted by Visitor (not verified)
Wed, 09/18/2024 - 12:15pm
What is the nature of the bond or common interest of your community? You can describe what the common interests of your community are and why or how they are important.

People who live on the waterfront.

Where is your community located? You can define it by cities, neighborhoods, streets, address, a key landmark such as college campus, facility, school, church, or other boundaries.

People who live along the water in Foster City, SFH, Apartments, Condos. People who live on the water have different housing needs, higher humidity in homes, wind issues, and groundwater / foundation issues, very different costs of home ownership and upkeep.

What is the rationale for your community of interest to be used in this City Council redistricting? Please describe how the issues before the City Council has an impact on your community.

People who live along the water are a minority of Foster City people but the majority of people in Foster City benefit from the lagoon drainage. Yet, the people on the water suffer the ill effects of unkept streets, dirty streets, and rotten fruit and other waste entering the lagoon. Foster City has consistently ranked as some of the most polluted water in California yet the city has ignored the issue of basic lagoon maintenance. This affects the health and safety of the community of interest especially the children. At one time water activities were common in Foster City. Children would have swimming competitions. Today it is too polluted to do so safely.

The following information is optional. If you provide an email address, we will send you updates on the process.

Name
Waterman Bill
Are you a Foster City resident?
yes
What neighborhood to you live in?
#1
Email address
Source URL:https://www.fostercity.org/node/46662/submission/17735 Links
[1] https://www.fostercity.org/cityclerk/webform/tell-us-about-your-community-interest

7.2 Attachment 2 - Community of Interest Forms

235

7.2 Attachment 2 - Community of Interest Forms

236

Published on Foster City California (https://www.fostercity.org) Home Tell Us About Your Community of Interest Webform results Submission #3 Submission information
Form: Tell Us About Your Community of Interest [1]
Submitted by Visitor (not verified)
Wed, 09/18/2024 - 2:08pm
What is the nature of the bond or common interest of your community? You can describe what the common interests of your community are and why or how they are important.

Renters
Where is your community located? You can define it by cities, neighborhoods, streets, address, a key landmark such as college campus, facility, school, church, or other boundaries.

Large rental developments across foster city.
https://fostercity.maps.arcgis.com/apps/webappviewer/index.html? id=8eed3112978f487793737478d9918e39
What is the rationale for your community of interest to be used in this City Council redistricting? Please describe how the issues before the City Council has an impact on your community.

Renters are more likely underrepresented as they are more likely not to be voters, not to be citizens, more likely to be green card and visa holders. A good illustration is Brewer Island School. Brewer Island has the most languages spoken of any school in SMFCSD. However, it's attendance continues to drop, now risking closure. The progress students are making at this school is heavily impacted by the number of ESL students without support.

The following information is optional. If you provide an email address, we will send you updates on the process.

Name
2nd Language Speaker
Are you a Foster City resident?
yes
What neighborhood to you live in?
Foster's Landing
Email address
Source URL:https://www.fostercity.org/node/46662/submission/17738 Links
[1] https://www.fostercity.org/cityclerk/webform/tell-us-about-your-community-interest

7.2 Attachment 2 - Community of Interest Forms

237

Published on Foster City California (https://www.fostercity.org) Home Tell Us About Your Community of Interest Webform results Submission #4 Submission information
Form: Tell Us About Your Community of Interest [1]
Submitted by Visitor (not verified)
Wed, 09/18/2024 - 5:04pm
What is the nature of the bond or common interest of your community? You can describe what the common interests of your community are and why or how they are important.

Lagoon homes have a common interest. It is important to keep and maintain the lagoon clean and safe which our community shares.

Where is your community located? You can define it by cities, neighborhoods, streets, address, a key landmark such as college campus, facility, school, church, or other boundaries.

Foster city homes that are located on the lagoon.

What is the rationale for your community of interest to be used in this City Council redistricting? Please describe how the issues before the City Council has an impact on your community.

Consideration on maintenance and keeping the water quality clean and safe.

The following information is optional. If you provide an email address, we will send you updates on the process.

Name
Are you a Foster City resident?
What neighborhood to you live in?
Email address
Source URL:
https://www.fostercity.org/node/46662/submission/17739
Links
[1] https://www.fostercity.org/cityclerk/webform/tell-us-about-your-community-interest

7.2 Attachment 2 - Community of Interest Forms

238

Published on Foster City California (https://www.fostercity.org) Home Tell Us About Your Community of Interest Webform results Submission #5 Submission information
Form: Tell Us About Your Community of Interest [1]
Submitted by Visitor (not verified)
Tue, 09/24/2024 - 8:22am
What is the nature of the bond or common interest of your community? You can describe what the common interests of your community are and why or how they are important.

Brewer Island School, people who use that school.

Where is your community located? You can define it by cities, neighborhoods, streets, address, a key landmark such as college campus, facility, school, church, or other boundaries.

In the area surrounding the feeds to Brewer Island School What is the rationale for your community of interest to be used in this City Council redistricting? Please describe how the issues before the City Council has an impact on your community.

Brewer Island has the most languages spoken in the school district. It has suffered from declining enrollment and a large number of in and out students due to the extremely high rental population in our area. It would be helpful have representation on the city council here., The following information is optional. If you provide an email address, we will send you updates on the process.

Name
Are you a Foster City resident?
yes
What neighborhood to you live in?
1 Email address
Source URL:
https://www.fostercity.org/node/46662/submission/17748
Links
[1] https://www.fostercity.org/cityclerk/webform/tell-us-about-your-community-interest

7.2 Attachment 2 - Community of Interest Forms

239

Published on Foster City California (https://www.fostercity.org) Home Tell Us About Your Community of Interest Webform results Submission #6 Submission information
Form: Tell Us About Your Community of Interest [1]
Submitted by Visitor (not verified)
Fri, 10/11/2024 - 3:30pm
What is the nature of the bond or common interest of your community? You can describe what the common interests of your community are and why or how they are important.

To me, the entire city of foster city has the same common interest. There is no need for district elections.

Where is your community located? You can define it by cities, neighborhoods, streets, address, a key landmark such as college campus, facility, school, church, or other boundaries.

No, I cannot define it. Again, the entire city is the same. Bring back at-large elections. There is no need for district elections in such a small bedroom community, such as foster city.

What is the rationale for your community of interest to be used in this City Council redistricting? Please describe how the issues before the City Council has an impact on your community.

No rational. The city council impacts the entire community the same way. no matter what street you live on.

The following information is optional. If you provide an email address, we will send you updates on the process.

Name
eric
Are you a Foster City resident?
yes
What neighborhood to you live in?
Email address
Source URL:https://www.fostercity.org/node/46662/submission/17814 Links
[1] https://www.fostercity.org/cityclerk/webform/tell-us-about-your-community-interest

7.2 Attachment 2 - Community of Interest Forms

240

Published on Foster City California (https://www.fostercity.org) Home Tell Us About Your Community of Interest Webform results Submission #7 Submission information
Form: Tell Us About Your Community of Interest [1]
Submitted by Visitor (not verified)
Sat, 10/12/2024 - 2:40pm
What is the nature of the bond or common interest of your community? You can describe what the common interests of your community are and why or how they are important.

Foster City City CouncilNovember 18, 2024

Foster City City Council
November 18, 2024