Agenda — Menlo Park City Council, March 1, 2022 (part 1 of 2)

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council

SPECIAL MEETING AGENDA
Date: 3/1/2022
Time: 5:30 p.m.

Location: Zoom.us/join – ID# 831 3316 9409
NOVEL CORONAVIRUS, COVID-19, EMERGENCY ADVISORY NOTICE
Consistent with Government Code section 54953(e), and in light of the declared state of emergency, and maximize public safety while still maintaining transparency and public access, members of the public can listen to the meeting and participate using the following methods.

How to participate in the meeting
 Submit a written comment online up to 1-hour before the meeting start time:
[email protected] *
Please include the agenda item number you are commenting on.  Access the meeting real-time online at:

Zoom.us/join – Meeting ID 831 3316 9409
 Access the meeting real-time via telephone at:
(669) 900-6833
Meeting ID 831 3316 9409
Press *9 to raise hand to speak
*Written public comments are accepted up to 1-hour before the meeting start time. • Watch meeting:
• Cable television subscriber in Menlo Park, East Palo Alto, Atherton, and Palo Alto:

Channel 26
Note: City Council closed sessions are not broadcast online or on television and public participation is limited to the beginning of closed session.

Subject to Change: Given the current public health emergency and the rapidly evolving federal, state, county and local orders, the format of this meeting may be altered or the meeting may be canceled. You may check on the status of the meeting by visiting the City’s website www.menlopark.org. The instructions for logging on to the webinar and/or the access code is subject to change. If you have difficulty accessing the webinar, please check the latest online edition of the posted agenda for updated information (menlopark.org/agenda).

According to City Council policy, all meetings of the City Council are to end by midnight unless there is a super majority vote taken by 11:00 p.m. to extend the meeting and identify the items to be considered after 11:00 p.m.

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council Special Meeting Agenda
March 1, 2022

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Regular Session (Zoom.us/join – ID# 831 3316 9409)
A. Call To Order
B. Roll Call
C. Agenda Review
D. Closed Session
Public Comment on these items will be taken before adjourning to Closed Session.

D1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: David Fogel et al. v. City of Menlo Park, Case No. 21-CIV-06674 E. Report from Closed Session
F. Consent Calendar
F1. Accept the City Council meeting minutes for January 11, 25, and 28, 2022 (Attachment) F2. Adopt a resolution (1) amending City Council Policy CC-21-004 Commissions/Committees Policies and Procedures, Roles and Responsibilities to disband the City’s Housing Element Community Engagement and Outreach Committee (CEOC) and (2) amending Resolution No. 6622 to remove the CEOC from the City’s real property reporting requirements (Staff Report #22-037-CC) F3. Authorize the city manager to extend the Joint-Use Library Initiative Memorandum of Understanding with Ravenswood City School District for Belle Haven branch library operations at Belle Haven School (Staff Report #22-035-CC)
F4. Adopt a resolution accepting and appropriating a California State Library grant in the amount of $20,000 to develop and circulate Read Together Diversity Kits through the Belle Haven branch library (Staff Report #22-036-CC)
F5. Adopt a resolution to update the following of the Below Market Rate Housing Program Guidelines:
1) purchase and rental interest list eligibility criteria and 2) general programming-related descriptions (Staff Report #22-043-CC)
F6. Adopt a resolution to continue conducting the City’s Council and advisory body meetings remotely due to health and safety concerns for the public and to authorize the use of hybrid meetings (Staff Report# 22-038-CC)
G. Public Hearing
G1. Declare a water shortage emergency pursuant to Water Code section 350, adopt Stage 1 Drought Measures pursuant to City’s 2020 Water Shortage Contingency Plan, and adopt a Water Conservation Plan implementing State Water Resources Control Board emergency regulations (Staff Report #22-042-CC) (Presentation)
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council Special Meeting Agenda
March 1, 2022

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G2. Introduce an ordinance to amend Municipal Code Chapter 7.35 on Water Conservation which provides for enforcement of conservation measures in the Water Shortage Contingency Plan (Staff Report #22-033-CC) (Presentation)
H. Regular Business
H1. Adopt a resolution determining the Utility Users Tax is necessary to the financial health of the City pursuant to Section 3.14.310 of the Municipal Code (Staff Report #22-044-CC) H2. Adopt a resolution to install no parking restrictions on a portion of El Camino Real and timed parking restrictions on a portion of College Avenue (Staff Report #22-039-CC) (Presentation) H3. Consider an appeal of the Complete Streets Commission’s approval of two on-street parking removal requests on University Drive (Staff Report #22-040-CC) (Presentation) I. Informational Items
I1. City Council agenda topics: March 8 – March 22, 2022 (Staff Report #22-041-CC) J. City Manager's Report
K. City Councilmember Reports
L. Adjournment
At every regular meeting of the City Council, in addition to the public comment period where the public shall have the right to address the City Council on any matters of public interest not listed on the agenda, members of the public have the right to directly address the Council on any item listed on the agenda at a time designated by the chair, either before or during the City Council’s consideration of the item.

At every special meeting of the City Council, members of the public have the right to directly address the City Council on any item listed on the agenda at a time designated by the chair, either before or during consideration of the item.

For appeal hearings, appellant and applicant shall each have 10 minutes for presentations.

If you challenge any of the items listed on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Menlo Park at, or prior to, the public hearing.

Any writing that is distributed to a majority of the City Council by any person in connection with an agenda item is a public record (subject to any exemption under the Public Records Act) and is available by request by emailing the city clerk at [email protected]. Persons with disabilities, who require auxiliary aids or services in attending or participating in City Council meetings, may call the City Clerk’s Office at 650-330-6620.

Agendas are posted in accordance with Government Code Section 54954.2(a) or Section 54956. Members of the public can view electronic agendas and staff reports by accessing the City website at menlopark.org/agenda and can receive email notification of agenda and staff report postings by subscribing to the “Notify Me” service at menlopark.org/notifyme.

Agendas and staff reports may also be obtained by contacting City Clerk at 650-330-6620. (Posted: 2/24/2022) City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council
REGULAR MEETING MINUTES – DRAFT
Date: 1/11/2022
Time: 6:00 p.m.

Location: Zoom
Regular Session
A. Call To Order
Mayor Nash called the meeting to order at 6:11 p.m.

B. Roll Call

Present: Combs, Nash, Taylor, Wolosin

Absent: Mueller
Staff: City Manager Starla Jerome-Robinson, City Attorney Nira Doherty, City Clerk Judi A.

Herren
C. Agenda Review
The City Council pulled items F3. and F4. for discussion.

D. Report from Closed Session
No reportable actions.

E. Public Comment
• James Pistorino spoke on concerns about the posting of this meeting’s agenda in accordance with the Brown Act.
• Angela Evans spoke on an Environmental Quality Commission (EQC) project for three potential retrofit and electrification pilots in partnership with BlocPower.

The City Council received clarification on the public noticing of this meeting’s agenda.

F. Consent Calendar
F1. Accept the City Council meeting minutes for October 13, November 9, 16, December 7, 8, and 14, 2021 (Attachment)
F2. Adopt a resolution to continue conducting the City’s Council and advisory body meetings remotely due to health and safety concerns for the public and to authorize the use of hybrid meetings (Staff Report #22-006-CC)
F3. Transmittal of the annual report on the status of the transportation impact, storm drainage, recreation in-lieu, below market rate housing in-lieu, and construction impact fees collected as of June 30, 2021 (Staff Report #22-001-CC)
The City Council requested that this item return to the City Council for a follow-up discussion on guidelines, regulations and restrictions on impact fees.

AGENDA ITEM F-1 Page F-1.1
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council Regular Meeting Minutes – DRAFT
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F4. Authorize the city manager to execute a cost sharing agreement with the County of San Mateo for the Coleman and Ringwood Avenues transportation study and appropriate funding to the capital improvement plan for the study (Staff Report #22-007-CC) The City Council directed staff to explore incorporating additional services (e.g., outreach and pilots) into the agreement.

ACTION: Motion and second (Wolosin/ Taylor), to approve the consent calendar, passed 4-0 (Mueller absent).

G. Public Hearing
G1. Public hearing regarding the adoption of a resolution adopting required findings and authorizing city to execute an energy services contract pursuant to Government Code Section 4217 and authorizing the city manager to execute an agreement with ENGIE Services US Inc. to design, construct, operate, and maintain clean energy infrastructure for the Menlo Park Community Campus project in an amount not to exceed $5.72 million to design and construct the clean energy infrastructure; and appropriate $5.72 million from the unassigned funds in the general fund for the project; and finding the project exempt from the California Environmental Quality Act Guidelines Public hearing regarding the adoption of Resolution No. 6693 adopting required findings and authorizing city to execute an energy services contract pursuant to Government Code section 4217 and authorizing the city manager to execute an agreement with ENGIE Services US Inc. to design, construct, operate, and maintain clean energy infrastructure for the Menlo Park Community Campus project in an amount not to exceed $5.72 million to design and construct the clean energy infrastructure; and appropriate $5.72 million from the assigned and unassigned funds in the general fund for the project; and finding the project exempt from the California Environmental Quality Act Guidelines (Staff Report #22-008-CC)
Sustainability Manager Rebecca Lucky made the presentation (Attachment). • James Pistorino spoke on concerns about the posting of this meeting’s agenda and the adoption of a resolution in accordance with the Brown Act and the requesting of documents related to the calculations of the cost savings.
• Frengiz Surty spoke in support of the adoption of the resolution. • Rebecca Eliscu spoke in support of the adoption of the resolution. • Angela Evans spoke in support of the adoption of the resolution.

The City Council received clarification on the public noticing of this item, electric vehicle (EV) charging stations, guaranteed cost savings, community outreach, and the request for proposals process.

ACTION: Motion and second (Wolosin/ Combs), to adopt Resolution No. 6693 1) adopting required findings and authorizing the city manager to execute an agreement with ENGIE Services US Inc. to design, construct, operate, and maintain clean energy infrastructure consisting of a solar plus battery storage microgrid, a solar photovoltaic thermal pool heating system, and 27 EV charging capable spaces for the Menlo Park Community Campus project in an amount not to exceed $5.72 million (inclusive of nine percent contingency of $470,178) for the design and construction aspects of the clean energy infrastructure; and 2) appropriate $3.22 million from the unassigned fund balance and $2.5 million from the economic stabilization assigned fund balance in the general fund for the design and construction aspects of this project; and 3) find Page F-1.2
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the project exempt from the California Environmental Quality Act (CEQA) Guidelines, passed 4-0 (Mueller absent).

H. Regular Business
H1. Appointment of interim city manager and approval of compensation for interim city manager services (Staff Report #22-009-CC)
Legal Counsel Genevieve Ng introduced the item.
• Katie Behroozi spoke in support of the appointment of Justin Murphy as Interim City Manager.

ACTION: Motion and second (Combs/ Wolosin), to appoint Justin Murphy as interim city manager and approve a salary increase of 7.72% to $245,000 for interim city manager services, passed 4-0 (Mueller absent).

H2. Adopt a resolution approving and authorizing the Mayor to execute the second amendment to and restatement of the joint powers agreement establishing the Peninsula Traffic Congestion Relief Alliance and appoint representatives to the Peninsula Traffic Congestion Relief Alliance board of directors (Staff Report #22-004-CC)
Assistant Public Works Director Hugh Louch and Transportation Demand Management Coordinator Nicholas Yee made the presentation (Attachment).
• Adina Levin spoke in support of the resolution, agreement, and membership on the Commute.org board.

ACTION: Motion and second (Combs/ Nash), to adopt a resolution approving and authorizing the Mayor to execute the second amendment to and restatement of the joint powers agreement establishing the Peninsula Traffic Congestion Relief Alliance (Alliance), which will formalize the City of Menlo Park’s membership in the Alliance, and to appoint Vice Mayor Wolosin as the representative and City Councilmember Combs as the alternate to the Alliance board of directors, passed 4-0 (Mueller absent).

H3. Adopt a resolution to approve changes to the transportation impact analysis guidelines related to vehicle miles traveled thresholds and other minor corrections (Staff Report #22-005-CC) Assistant Public Works Director Hugh Louch and Senior Transportation Engineer Kristiann Choy made the presentation (Attachment).
• Adina Levin reported on the activities of the Complete Streets Commission.

The City Council discussed expediting measurements to capture safety and other road users consistent with City vision zero, complete streets, and safe routes to school goals and programs.

The City Council directed staff to return to the City Council with multimodal metrics.

ACTION: Motion and second (Combs/ Nash), to adopt a resolution to approve a set of technical updates to the City’s transportation impact analysis (TIA) guidelines and repeal all prior versions of the TIA guidelines to address calculation of the vehicle miles traveled thresholds and other minor changes, passed 4-0 Page F-1.3
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council Regular Meeting Minutes – DRAFT
January 11, 2022

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(Mueller absent).

H4. Adopt Resolution No. 6690 authorizing the city manager to execute a purchase and sale agreement for a portion of 700-800 El Camino Real to support implementation of the Middle Avenue pedestrian and bicycle rail undercrossing project and making specified findings in association therewith consistent with the certified El Camino Real and Downtown specific plan environmental impact report and the certified addendum to the specific plan environmental impact report (Staff Report #22-003-CC)
Assistant Public Works Director Hugh Louch made the presentation (Attachment). • Adina Levin spoke in support of the project.

The City Council discussed the costs and timeline associated with the project.

ACTION: Motion and second (Nash/ Wolosin), to adopt Resolution No. 6690 authorizing the city manager to execute a purchase agreement in substantially the same form as Exhibit A of Attachment A of Staff Report #22-003-CC with Menlo Station Development, LLC, for a portion of 700-800 El Camino Real (APN 071-333- 200) to support implementation of the Middle Avenue pedestrian and bicycle rail crossing project and make specified findings in association therewith consistent with the certified El Camino Real and Downtown specific plan environmental impact report and the certified addendum to the specific plan environmental impact report, passed 4-0 (Mueller absent).

H5. Consideration and direction on 1) the composition and charge of the Housing Element Community Engagement and Outreach Committee and 2) amendments to the consultant’s scope of work (Staff Report #22-010-CC)
Assistant Community Development Director Deanna Chow made the presentation (Attachment). • Brittani Baxter spoke in support of additional investments aimed at community engagement. • Pam Jones provided options on the housing element in collaboration with the Housing Element Community Engagement and Outreach Committee (CEOC).
• Michal Bortnik spoke in support of including extra funding for community outreach. • Lesley Fleischman expressed the experience of serving on the CEOC and in support of restarting the CEOC.

The City Council received clarification on the environmental justice component in relationship to the housing element, reviewing a summary of the previous housing element, and the annual review.

The City Council discussed the efforts made by the CEOC and staff, the setback from the discarded surveys, legal requirements of the housing element, polling existing CEOC members to continue the CEOC, the City Council and staff’s role in working with current and former CEOC members, reduction in the number of CEOC members, and amendments to the consultant’s scope of work to support changes directed by City Council.

The City Council directed Mayor Nash and City Councilmember Taylor to connect with current and former CEOC members on their interest in serving on the CEOC and to return to staff with an update and directed staff to identify a community based organization to provide additional outreach in Page F-1.4
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District 1 in preparation of the environmental justice element.

I. Informational Items
I1. City Council agenda topics: January 25 – February 8, 2022 (Staff Report #22-011-CC) I2. Update – Re-Imagining Public Safety Subcommittee (Staff Report #22-002-CC) J. City Manager's Report
None.

K. City Councilmember Reports
Vice Mayor Wolosin reported out on the city manager recruitment and a climate event on January 14, 2022.

Mayor Nash reported out on a meeting with BlocPower founder Donnel Baird, EQC Vice Chair Angela Evans, Menlo Spark Director Diane Bailey, and local investors and sponsors.

L. Adjournment
Mayor Nash adjourned the meeting at 9:36 p.m.

Judi A. Herren, City Clerk
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January 11, 2022

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NOVEL CORONAVIRUS, COVID-19, EMERGENCY ADVISORY NOTICE
Consistent with Government Code section 54953(e), and in light of the declared state of emergency, the meeting will not be physically open to the public and all members will be teleconferencing into the meeting via a virtual platform. To maximize public safety while still maintaining transparency and public access, members of the public can listen to the meeting and participate using the following methods. • How to participate in the meeting
• Submit a written comment online up to 1-hour before the meeting start time:
[email protected] *
Please include the agenda item number you are commenting on. • Access the meeting real-time online at:

Zoom.us/join – Meeting ID 831 3316 9409
• Access the meeting real-time via telephone at:
(669) 900-6833
Meeting ID 831 3316 9409
Press *9 to raise hand to speak
*Written public comments are accepted up to 1-hour before the meeting start time. • Watch meeting:
• Cable television subscriber in Menlo Park, East Palo Alto, Atherton, and Palo Alto:

Channel 26
• Online:
menlopark.org/streaming
Note: City Council closed sessions are not broadcast online or on television and public participation is limited to the beginning of closed session.

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City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council
REGULAR MEETING MINUTES – DRAFT
Date: 1/25/2022
Time: 6:00 p.m.

Location: Zoom
Regular Session
A. Call To Order
Mayor Nash called the meeting to order at 6:02 p.m.

B. Roll Call

Present: Combs, Mueller, Nash, Taylor, Wolosin

Absent: None
Staff: City Manager Starla Jerome-Robinson, City Attorney Nira Doherty, City Clerk Judi A.

Herren
The City Council recognized John Arrillaga and his contributions to Menlo Park.

C. Agenda Review
Staff reordered public comment for closed session item K1.

The City Council pulled item F3. for discussion.

D. Presentations and Proclamations
D1. Proclamation: Condemning Anti-Semitism (Attachment) Mayor Nash read the proclamation (Attachment).

Tyler Gregory, CEO of the Jewish Community Relations Council accepted the proclamation.

D2. Proclamation: Taking a Stand Against Human Trafficking in the Bay Area (Attachment) Mayor Nash read the proclamation (Attachment).

Pamela Estes San Mateo County Human Trafficking Program Coordinator accepted the proclamation.

D3. Proclamation: Recognizing Starla Jerome-Robinson
Mayor Nash read the proclamation (Attachment).

Starla Jerome-Robinson accepted the proclamation.

E. Public Comment
• Meta representative Ashley Quintana spoke on the opening of the pedestrian bridge over Bayfront Expressway and Meta Park.

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City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council Regular Meeting Minutes – DRAFT
January 25, 2022

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K1. Closed Session – Public Comment
K1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: David Fogel et al. v. City of Menlo Park, Case No. 21-CIV-06674

None.

F. Consent Calendar
F1. Accept the City Council meeting minutes for December 28, 2021 and January 7, 2022 (Attachment) F2. Adopt a resolution approving the City Council Community Funding Subcommittee’s recommendations for 2021-22 community funding allocations; and authorizing a fiscal year 2021-22 budget amendment and appropriation in the amount of $17,000 from general fund unassigned fund balance (Staff Report #22-012-CC)
F3. Waive the competitive bidding process; and authorize the city manager to execute a master agreement with Optony Inc. in an amount not to exceed $130,000 per year to support 2030 climate action plan implementation and clean energy infrastructure for the Menlo Park Community Campus project (Staff Report #22-013-CC)
The City Council received clarification on waiving of the competitive bid process and City staff resources.

F4. Adopt a resolution to accept Federal Emergency Management Agency Building Resilient Infrastructure and Communities grant funds, if awarded, and authorize the city manager to execute a memorandum of understanding with partners for a portion of the Strategy to Advance Flood Protection, Ecosystems and Recreation along the San Francisco Bay project (Staff Report #22-014-CC)
F5. Award a construction contract to Radius Earthwork Inc. for the Middle Avenue and Nealon Park pedestrian improvement project (Staff Report #22-018-CC) F6. Award a construction contract to Columbia Electric, Inc. and appropriate $211,300 in assigned funds from the general fund for the series circuit and street light replacement in the Suburban Park and Flood Triangle neighborhood project (Staff Report #22-019-CC) ACTION: Motion and second (Wolosin/ Combs), to approve the consent calendar, passed unanimously.

G. Regular Business
G1. Adopt an urgency ordinance temporarily closing the north bound travel lane on the 600 block of Santa Cruz Avenue and a portion of Ryan’s Lane, and authorizing the establishment and issuance of temporary outdoor activity permits allowing businesses to safely conduct their businesses outdoors during the COVID-19 state of emergency (Staff Report #22-021-CC) Interim City Manager Justin Murphy made the presentation (Attachment). • Café Zoe owner Kathleen Daly spoke in support of the street closure to vehicle traffic and Page F-1.8

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January 25, 2022

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temporary outdoor activity permits.
• Oros spoke in opposition of the street closure to vehicle traffic and spoke in support of parklet closures only.
• Alex Beltramo spoke in opposition of the street closure to vehicle traffic and in support of parklet closures only.
• Chamber of Commerce CEO Fran Dehn spoke in support of the street closure to vehicle traffic and temporary outdoor activity permits.

The City Council discussed staff returning with design standards for the parklets, alignment of expiration dates for permits and street closures, the vision of the Downtown’s future, and City Council Downtown Subcommittee charge.

The City Council received clarification on temporary outdoor use permit program on a month to month basis and street closure without an expiration and HdL’s Downtown market study.

The City Council directed staff to update new temporary outdoor use permit program to allow parklets/street cafes in off-street parking spaces remain on a month to month basis and current parklets/street cafes in off-street parking spaces to align with the Downtown street closure expiration.

ACTION: Motion and second (Nash/ Combs), to adopt an urgency ordinance to continue the Downtown street closure program to reflect continued temporary closure of the north bound 600 block of Santa Cruz Avenue and a portion of Ryan’s Lane, passed unanimously.

G2. Provide feedback on the Caltrain quiet zone implementation plan request for proposals (Staff Report #22-020-CC)
Assistant Public Works Director Hugh Louch and Associate Transportation Engineer Phong Vo made the presentation (Attachment).

• Marcy Abramowitz spoke in support of the quiet zone and resident participation and requested that the request for proposals (RFP) include California specific experience with quiet zones and inclusion of the pedestrian crossing at the Menlo Park Caltrain station. • Adina Levin spoke in support of the quiet zone and the Palo Alto Avenue crossing horn noise impacts to Menlo Park residents.
• Adrian Brandt spoke in support of the quiet zone.
• Susannah Ragab spoke in support of the quiet zone.
• George Ugras spoke in support of the quiet zone and including the Palo Alto Avenue crossing.

The City Council discussed including the Palo Alto Avenue crossing in the RFP, including the pedestrian crossing at the Menlo Park Caltrain station, and California experience with quiet zones in the RFP.

The City Council received clarification on the selection of vendor as qualification-based opposed to cost-based.

ACTION: Motion and second (Wolosin/ Taylor), to authorize the quiet zone implementation plan request for proposals per the feedback of the City Council, passed unanimously.

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January 25, 2022

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H. Informational Items
H1. City Council agenda topics: January – February 22, 2022 (Staff Report #22-015-CC) H2. Police department quarterly update – Q2 July – September 2021 (Staff Report #22-016-CC) H3. Personnel activity report as of January 2022 (Staff Report #22-017-CC) I. City Manager's Report
Interim City Manager Justin Murphy reported out on the opening of the pedestrian bridge at Meta Park, provided an update on the housing element project, and a housing element virtual meeting on February 12, 2022.

J. City Councilmember Reports
None.

Adjournment to Closed Session
Mayor Nash adjourned to the closed session at 8:22 p.m.

K. Closed Session
K1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: David Fogel et al. v. City of Menlo Park, Case No. 21-CIV-06674 No reportable actions.

L. Adjournment
Mayor Nash adjourned the meeting at 9:55 p.m.

Judi A. Herren, City Clerk
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City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council Regular Meeting Minutes – DRAFT
January 25, 2022

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NOVEL CORONAVIRUS, COVID-19, EMERGENCY ADVISORY NOTICE
Consistent with Government Code section 54953(e), and in light of the declared state of emergency, and maximize public safety while still maintaining transparency and public access, members of the public can listen to the meeting and participate using the following methods.

How to participate in the meeting
• Submit a written comment online up to 1-hour before the meeting start time:
[email protected] *
Please include the agenda item number you are commenting on. • Access the meeting real-time online at:

Channel 26
• Online:
menlopark.org/streaming
Note: City Council closed sessions are not broadcast online or on television and public participation is limited to the beginning of closed session.

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City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org City Council
SPECIAL MEETING MINUTES – DRAFT
Date: 1/28/2022
Time: 3:00 p.m.

Location: Zoom
Closed Session
A. Call To Order
Mayor Nash called the meeting to order at 3:04 p.m.

B. Roll Call

Present: Combs, Mueller, Nash, Taylor, Wolosin

Absent: None
Staff: City Attorney Nira Doherty, City Clerk Judi A. Herren C. Closed Session
C1. Closed Session pursuant to Government Code Section 54957

PUBLIC EMPLOYMENT
Title: City Manager
No reportable actions.

D. Adjournment
Mayor Nash adjourned the meeting at 4:41 p.m.

Judi A. Herren, City Clerk
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January 28, 2022

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Zoom.us/join – Meeting ID 892 8060 2863
• Access the meeting real-time via telephone at:
(669) 900-6833
Meeting ID 892 8060 2863
Press *9 to raise hand to speak
*Written public comments are accepted up to 1-hour before the meeting start time.

Note: City Council closed sessions are not broadcast online or on television and public participation is limited to the beginning of closed session.

Page F-1.13
City Manager's Office

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org

STAFF REPORT
City Council
Meeting Date: 3/1/2022
Staff Report Number: 22-037-CC
Consent Calendar: Adopt a resolution (1) amending City Council Policy CC-21-004 Commissions/Committees Policies and
Procedures, Roles and Responsibilities to disband
the City’s Housing Element Community
Engagement and Outreach Committee (CEOC) and
(2) amending Resolution No. 6622 to remove the
CEOC from the City’s real property reporting
requirements
Recommendation
Staff recommends that the City Council adopt a resolution (Attachment A) (1) amending City Council Policy CC-21-004 Commissions/Committees Policies and Procedures, Roles and Responsibilities (Exhibit A to resolution) to disband the City’s Housing Element Community Engagement and Outreach Committee (CEOC) and (2) amending Resolution No. 6622 to remove the CEOC from the City’s real property reporting requirements (Exhibit B to resolution.)
Policy Issues
According to City Council Policy CC-21-004 Commissions/Committees Policies and Procedures, Roles and Responsibilities, upon recommendation by the Chair or appropriate staff, any standing or special advisory body, established by the City Council and whose members were appointed by the City Council, may be declared disbanded due to lack of business, by majority vote of the City Council.

Background
At the April 27, 2021, City Council meeting, the City Council authorized the formation of the CEOC for the housing element update project. As originally contemplated, the CEOC would be comprised of 10 members, with five members appointed by the City Council (one from each district) and the remaining five anticipated to be selected at random by the City Council. The CEOC’s overall purpose was to assist the City in ensuring a broad and inclusive community outreach and engagement process. The primary responsibilities of the group were to:
• Serve as an ambassador of the project and encourage people to participate in the process; • Help guide and provide feedback on the community engagement plan; and • Serve as a community resource to provide information to and receive input from the community on matters related to community engagement and public outreach.

On May 25, 2021, the City Council considered CEOC applicants and made 12 appointments and added two placeholders for District 5 members, ultimately filling one of the two seats for District 5.

At the January 11, 2022 City Council meeting, the City Council considered the composition and charge of AGENDA ITEM F-2 Page F-2.1
Staff Report #: 22-037-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org the CEOC and directed Mayor Nash and City Councilmember Taylor to connect with current and former CEOC members on their interest in serving on the CEOC and to return with an update.

On February 8, 2022, the City Council discussed modifications to the composition and charge of the CEOC and directed staff to return an item to the City Council disbanding the CEOC.

Analysis
City Council Policy CC-21-004 Commissions/Committees Policies and Procedures, Roles and Responsibilities is proposed to be revised to remove the CEOC from the purview of these procedures.

Additionally, staff recommends revising Resolution No. 6622 which sets forth the various City bodies subject to the City’s real property reporting requirements. Resolution No. 6622 would be revised to remove the CEOC from the purview of the real property reporting requirements.

Impact on City Resources
There is no impact on City resources.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Resolution and Exhibits A and B
Report prepared by:

Judi A. Herren, City Clerk
Page F-2.2
RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK AMENDING CITY COUNCIL POLICY CC-21-004

COMMISSIONS/COMMITTEES POLICIES AND PROCEDURES, ROLES AND RESPONSIBILITIES TO DISBAND THE CITY’S HOUSING ELEMENT

COMMUNITY ENGAGEMENT AND OUTREACH COMMITTEE (CEOC) AND
AMENDING RESOLUTION NO. 6622 TO REMOVE THE CEOC FROM THE CITY’S REAL PROPERTY REPORTING REQUIREMENTS
WHEREAS, the City Council established the Housing Element Community Engagement and Outreach Committee (CEOC) on April 27, 2021, to assist the City in ensuring a broad and inclusive community outreach and engagement process; and WHEREAS, in on May 25, 2021, the City Council considered CEOC applicants and made 12 appointments and added two placeholders for District 5 members; and WHEREAS, in on April 27, 2021, the City Council required the reporting of real property in Menlo Park for advisory body members impacting land use, real property, and the housing element with the reporting requirement applying to current and future members of the Complete Streets Commission, Housing Commission, and Housing Element Community Engagement and Outreach Committee; and
WHEREAS, on January 11, 2022, the City Council considered the composition and charge of the CEOC and directed Mayor Nash and City Councilmember Taylor to connect with current and former CEOC members on their interest in serving on the CEOC and to return with an update; and
WHEREAS, on February 8, 2022, the City Council discussed modifications to the composition and charge of the CEOC and directed staff to return an item to the City Council disbanding the CEOC; and
WHEREAS, this Resolution implements the City Council’s direction by amending City Council Policy CC-21-004 Commissions/Committees Policies and Procedures, Roles and Responsibilities to eliminate the CEOC, and by amending Resolution No. 6622 approving the Menlo Park advisory bodies real property reporting form and requiring certain advisory bodies of the City of Menlo Park to submit said form on an annual basis to remove the CEOC from the City’s real property reporting requirements.

NOW, THEREFORE, IT IS RESOLVED, that City Council Policy CC-21-004 Commissions/Committees Policies and Procedures, Roles and Responsibilities is hereby amended as set forth in Exhibit A.

BE IT FURTHER RESOLVED, that Resolution No. 6622 is hereby amended as set forth in Exhibit B, attached hereto and incorporated herein by this reference. //
//
//
ATTACHMENT A Page F-2.3
I, Judi A. Herren, City Clerk of Menlo Park, do hereby certify that the above and foregoing City Council Resolution was duly and regularly passed and adopted at a meeting by said City Council on the first of March, 2022, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of March, 2022.

Judi A. Herren, City Clerk
Exhibits:

A. City Council Policy CC-22-004 Commissions/Committees Policies and Procedures, Roles and Responsibilities
B. Amended Resolution No. 6622
Resolution No. XXXX

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COMMISSIONS/COMMITTEES POLICIES AND

PROCEDURES, ROLES AND RESPONSIBILITIES
City Council Procedure #CC-2122-004
Effective 6/08/202103/01/2022
Resolution No. 6631XXXX
Purpose
To define policies and procedures and roles and responsibilities for Menlo Park appointed commissions and committees.

Authority
Upon its original adoption, this policy replaced the document known as “Organization of Advisory Commissions of the City of Menlo Park.”
Background
The City of Menlo Park currently has eight active Commissions and Committees. The active advisory bodies are: Community Engagement and Outreach Committee, Complete Streets Commission, Environmental Quality Commission, Finance and Audit Committee, Housing Commission, Library Commission, Parks and Recreation Commission, and Planning Commission. Those not specified in the City Code are established by City Council ordinance or resolution. Most of these advisory bodies are established in accordance with Resolution 2801 and its amendments. Within specific areas of responsibility, each advisory body has a primary role of advising the City Council on policy matters or reviewing specific issues and carrying out assignments as directed by the City Council or prescribed by law.

Seven of the eight commissions and committees listed above are advisory in nature. The Planning Commission is both advisory and regulatory and organized according to the City Code (Ch. 2.12) and State statute (Government Code 65100 et seq., 65300-65401).

The City has an adopted Anti-Harassment and Non-Discrimination Policy (CC-95-001), and a Travel and Expense Policy (CC-91-002), which are also applicable to all advisory bodies.

Policies and Procedures
Relationship to City Council, staff and media
• Upon referral by the City Council, the commission/committee shall study referred matters and return their recommendations and advise to the City Council. With each such referral, the City Council may authorize the City staff to provide certain designated services to aid in the study. • Upon its own initiative, the commission/committee shall identify and raise issues to the City Council’s attention and from time to time explore pertinent matters and make recommendations to the City Council. • At a request of a member of the public, the commission/committee may consider appeals from City actions or inactions in pertinent areas and, if deemed appropriate, report and make recommendations to the City Council.
• Each commission/committee is required to develop an annual work plan which will be the foundation for the work performed by the advisory body in support of City Council annual work plan. The plan, once finalized by a majority of the commission/committee, will be formally presented to the City Council for direction and approval no later than September 30 of each year and then reported out on by a representative of the advisory body at a regularly scheduled City Council meeting at least annually, but recommended twice a year. The proposed work plan must align with the City Council’s adopted work plan. When modified, the work plan must be taken to the City Council for approval. The Planning Commission is exempt from this requirement as its functions are governed by the Menlo Park municipal code (Chapter 2.12) and State law (Government Code 65100 et seq, 65300-65401). • Commissions and committees shall not become involved in the administrative or operational matters of City departments. Members may not direct staff to initiate major programs, conduct large studies or establish department policy. City staff assigned to furnish staff services shall be available to provide general staff assistance, such as preparation of agenda/notice materials and minutes, general review of department programs and activities, and to perform limited studies, program reviews, and other services EXHIBIT A Resolution No. XXXX

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Resolution No. 6631XXXX
of a general staff nature. Commissions/Committees may not establish department work programs or determine department program priorities. The responsibility for setting policy and allocating scarce City resources rests with the City’s duly elected representatives, the City Council. • Additional or other staff support may be provided upon a formal request to the City Council. • The staff liaison shall act as the commission/committee’s lead representative to the media concerning matters before the commission/committee. Commission/Committee members should refer all media inquiries to their respective liaisons for response. Personal opinions and comments may be expressed so long as the commission/committee member clarifies that his or her statements do not represent the position of the City Council.
• Commission/Committee members will have mandatory training every two years regarding the Brown Act and parliamentary procedures, anti-harassment training, ethics training, and other training required by the City Council or State Law. The commission/committee members may have the opportunity for additional training, such as training for chair and vice chair. Failure to comply with the mandatory training will be reported to the City Council and may result in replacement of the member by the City Council. • Requests from commission/committee member(s) determined by the staff liaison to take one hour or more of staff time to complete, must be directed by the City Council.

Role of City Council commission/committee liaison
City Councilmembers are assigned to serve in a liaison capacity with one or more city commission/committee. The purpose of the liaison assignment is to facilitate communication between the City Council and the advisory body. The liaison also helps to increase the City Council's familiarity with the membership, programs and issues of the advisory body. In fulfilling their liaison assignment, City Councilmembers may elect to attend commission/committee meetings periodically to observe the activities of the advisory body or simply maintain communication with the commission/committee chair on a regular basis.

City Councilmembers should be sensitive to the fact that they are not participating members of the commission/committee, but are there rather to create a linkage between the City Council and commission/committee. In interacting with commissions/committee, City Councilmembers are to reflect the views of the City Council as a body. Being a commission/committee liaison bestows no special right with respect to commission/committee business.

Typically, assignments to commission/committee liaison positons are made at the beginning of a City Council term in December. The Mayor will ask City Councilmembers which liaison assignments they desire and will submit recommendations to the full City Council regarding the various committees, boards, and commissions which City Councilmembers will represent as a liaison. In the rare instance where more than one City Councilmember wishes to be the appointed liaison to a particular commission, a vote of the City Council will be taken to confirm appointments.

City Staff Liaison
The City has designated staff to act as a liaison between the commission/committee and the City Council. The City shall provide staff services to the commission/committee which will include:
• Developing a rapport with the Chair and commission/committee members • Providing a schedule of meetings to the City Clerk’s Office and commission/committee members, arranging meeting locations, maintaining the minutes and other public records of the meeting, and preparing and distributing appropriate information related to the meeting agenda. • Advising the commission/committee on directions and priorities of the City Council. • Informing the commission/committee of events, activities, policies, programs, etc. occurring within the scope of the commission/committee’s function.
• Ensuring the City Clerk is informed of all vacancies, expired terms, changes in offices, or any other changes to the commission/committee.

Resolution No. XXXX

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• Providing information to the appropriate appointed official including reports, actions, and recommendations of the committee/commission and notifying them of noncompliance by the commission/committee or chair with City policies.
• Ensuring that agenda items approved by the commission/committee are brought forth in a timely manner taking into consideration staff capacity, City Council priorities, the commission/committee work plan, and other practical matters such as the expense to conduct research or prepare studies, provided appropriate public notification, and otherwise properly prepare the item for commission/committee consideration.
• Take action minutes; upon agreement of the commission, this task may be performed by one of the members (staff is still responsible for the accuracy and formatting of the minutes) • Maintain a minute book with signed minutes
Recommendations, requests and reports
As needed, near the beginning of City Council meetings, there will be an item called “Commission/Committee Reports.” At this time, commissions/committees may present recommendations or status reports and may request direction and support from the City Council. Such requests shall be communicated to the staff liaison in advance, including any written materials, so that they may be listed on the agenda and distributed with the agenda packet. The materials being provided to the City Council must be approved by a majority of the commission/committee at a commission/committee meeting before submittal to the City Council. The City Council will receive such reports and recommendations and, after suitable study and discussion, respond or give direction.

City Council referrals
The City Clerk shall transmit to the designated staff liaison all referrals and requests from the City Council for advice and recommendations. The commissions/committees shall expeditiously consider and act on all referrals and requests made by the City Council and shall submit reports and recommendations to the City Council on these assignments.

Public appearance of commission/committee members
When a commission/committee member appears in a non-official, non-representative capacity before the public, for example, at a City Council meeting, the member shall indicate that he or she is speaking only as an individual. This also applies when interacting with the media and on social media. If the commission/committee member appears as the representative of an applicant or a member of the public, the Political Reform Act may govern this appearance. In addition, in certain circumstances, due process considerations might apply to make a commission/committee member’s appearance inappropriate.

Conversely, when a member who is present at a City Council meeting is asked to address the City Council on a matter, the member should represent the viewpoint of the particular commission/committee as a whole (not a personal opinion).

Disbanding of advisory body
Upon recommendation by the Chair or appropriate staff, any standing or special advisory body, established by the City Council and whose members were appointed by the City Council, may be declared disbanded due to lack of business, by majority vote of the City Council.

Meetings and officers

1. Agendas/notices/minutes
• All meetings shall be open and public and shall conduct business through published agendas, public notices and minutes and follow all of the Brown Act provisions governing public meetings. Special, canceled and adjourned meetings may be called when needed, subject to the Brown Act provisions. • Support staff for each commission/committee shall be responsible for properly noticing and posting all regular, special, canceled and adjourned meetings. Copies of all meeting agendas, notices and Resolution No. XXXX

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minutes shall be provided to the City Council, City Manager, City Attorney, City Clerk and other appropriate staff, as requested.
• Original agendas and minutes shall be filed and maintained by support staff in accordance with the City’s adopted records retention schedule.
• The official record of the commissions/committees will be preserved by preparation of action minutes.

2. Conduct and parliamentary procedures
• Unless otherwise specified by State law or City regulations, conduct of all meetings shall generally follow Robert’s Rules of Order.
• A majority of commission/committee members shall constitute a quorum and a quorum must be seated before official action is taken.
• The chair of each commission/committee shall preside at all meetings and the vice chair shall assume the duties of the chair when the chair is absent. • The role of the commission/committee chair (according to Roberts Rules of Order): To open the session at the time at which the assembly is to meet, by taking the chair and calling the members to order; to announce the business before the assembly in the order in which it is to be acted upon; to recognize members entitled to the floor; to state and put to vote all questions which are regularly moved, or necessarily arise in the course of the proceedings, and to announce the result of the vote; to protect the assembly from annoyance from evidently frivolous or dilatory motions by refusing to recognize them; to assist in the expediting of business in every compatible with the rights of the members, as by allowing brief remarks when undebatable motions are pending, if s/he thinks it advisable; to restrain the members when engaged in debate, within the rules of order, to enforce on all occasions the observance of order and decorum among the members, deciding all questions of order (subject to an appeal to the assembly by any two members) unless when in doubt he prefers to submit the question for the decision of the assembly; to inform the assembly when necessary, or when referred to for the purpose, on a point of order to practice pertinent to pending business; to authenticate by his/her signature, when necessary, all the acts, orders, and proceedings of the assembly declaring it will and in all things obeying its commands.

3. Lack of a quorum
• When a lack of a quorum exists at the start time of a meeting, those present will wait 15 minutes for additional members to arrive. If after 15 minutes a quorum is still not present, the meeting will be adjourned by the staff liaison due to lack of a quorum. Once the meeting is adjourned it cannot be reconvened.
• The public is not allowed to address those commissioners present during the 15 minutes the commission/committee is waiting for additional members to arrive. • Staff can make announcements to the members during this time but must follow up with an email to all members of the body conveying the same information. • All other items shall not be discussed with the members present as it is best to make the report when there is a quorum present.

4. Meeting locations and dates
• Meetings shall be held in designated City facilities, as noticed. • All commissions/committees with the exception of the Community Engagement and Outreach Committee, Planning Commission, and Finance and Audit Committee shall conduct regular meetings once a month. Special meetings may also be scheduled as required by the commission/committee. The Planning Commission shall hold regular meetings twice a month, the Community Engagement and Outreach Committee shall hold meetings as need, and the Finance and Audit Committee shall hold quarterly meetings.
• Monthly regular meetings shall have a fixed date and time established by the commission/committee. Changes to the established regular dates and times are subject to the approval of the City Council. An exception to this rule would include any changes necessitated to fill a temporary need in order for the commission/committee to conduct its meeting in a most efficient Resolution No. XXXX

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and effective way as long as proper and adequate notification is provided to the City Council and made available to the public.

The schedule of Commission/Committee meetings is as follows:
• Community Engagement and Outreach Committee – as needed • Complete Streets Commission – Every second Wednesday at 7 p.m. • Environmental Quality Commission – Every third Wednesday at 6:00 p.m. • Finance and Audit Committee – Third Wednesday of every quarter at 5:30 p.m., • Housing Commission – Every first Wednesday at 6:30 p.m. • Library Commission – Every third Monday at 6:30 p.m.
• Parks and Recreation Commission – Every fourth Wednesday at 6:30 p.m. • Planning Commission – Twice a month at 7 p.m.

Each commission/committee may establish other operational policies subject to the approval of the City Council. Any changes to the established policies and procedures shall be subject to the approval of the City Council.

5. Off-premises meeting participation
While technology allows commission/committee members to participate in meetings from a location other than the meeting location (referred to as “off-premises”), off-premises participation is discouraged given the logistics required to ensure compliance with the Brown Act and experience with technological failures disrupting the meeting. In the event that a commission/committee member believes that his or her participation is essential to a meeting, the following shall apply:
• Any commission/committee member intending to participate from an off-premise location shall inform the staff liaison at least two weeks in advance of the meeting. • The off-premise location must be identified in the notice and agenda of the meeting. • Agendas must be posted at the off-premise location.
• The off-premise location must be accessible to the public and be ADA compliant. • The commission/committee member participating at a duly noticed off-premises location does not count toward the quorum necessary to convene a meeting of the commission/committee. • For any one meeting, no more than one commission/committee member may participate from an off-premise location.
• All votes must be by roll call.

6. Selection of chair and vice chair
• The chair and vice chair shall be selected in May of each year by a majority of the members and shall serve for one year or until their successors are selected. • Each commission/committee shall annually rotate its chair and vice chair.

G. Memberships
Appointments/Oaths
• The City Council is the appointing body for all commissions/committees. All members serve at the pleasure of the City Council for designated terms.
• All appointments and reappointments shall be made at a regularly scheduled City Council meeting, and require an affirmative vote of not less than a majority of the City Council present. • Before taking office, all members must complete an Oath of Allegiance required by Article XX, §3, of the Constitution of the State of California. All oaths are administered by the City Clerk or his/her designee.
• Appointments made during the middle of the term are for the unexpired portion of that term.

Application and selection process
Resolution No. XXXX

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• The application process begins when a vacancy occurs due to term expiration, resignation, removal or death of a member.
• The application period will normally run for a period of four weeks from the date the vacancy occurs.

If there is more than one concurrent vacancy in a Commission, the application period may be extended. Applications are available from the City Clerk’s office and on the City’s website. • The City Clerk shall notify members whose terms are about to expire whether or not they would be eligible for reappointment. If reappointment is sought, an updated application will be required. • Applicants are required to complete and return the application form for each commission/committee they desire to serve on, along with any additional information they would like to transmit, by the established deadline. Applications sent by email are accepted; however, the form submitted must be signed.
• After the deadline of receipt of applications, the City Clerk shall schedule the matter at the next available regular City Council meeting. All applications received will be submitted and made a part of the City Council agenda packet for their review and consideration. If there are no applications received by the deadline, the City Clerk will extend the application period for an indefinite period of time until sufficient applications are received.
• Upon review of the applications received, the City Council reserves the right to schedule or waive interviews, or to extend the application process in the event insufficient applications are received. In either case, the City Clerk will provide notification to the applicants of the decision of the City Council. • If an interview is requested, the date and time will be designated by the City Council. Interviews are open to the public.
• The selection/appointment process by the City Council shall be conducted open to the public.

Nominations will be made and a vote will be called for each nomination in the order received.

Applicants receiving the highest number of affirmative votes from a majority of the City Council present shall be appointed. The number of votes for each City Councilmember is limited to the number of vacancies.
• Following a City Council appointment, the City Clerk shall notify successful and unsuccessful applicants accordingly, in writing. Appointees will receive copies of the City’s Non-Discrimination and Sexual Harassment policies, and disclosure statements for those members who are required to file under State law as designated in the City’s Conflict of Interest Code. Copies of the notification will also be distributed to support staff and the commission/committee chair. • An orientation will be scheduled by the City Clerk following an appointment (but before taking office) and a copy of this policy document will be provided at that time.

Attendance
• An Attendance Policy (CC-91-001), shall apply to all advisory bodies. Provisions of this policy are listed below.
• A compilation of attendance will be submitted to the City Council at least annually listing absences for all commissions/committee members.
• Absences, which result in attendance at less than two-thirds of their meetings during the calendar year, will be reported to the City Council and may result in replacement of the member by the City Council.
• Any member who feels that unique circumstances have led to numerous absences can appeal directly to the City Council for a waiver of this policy or to obtain a leave of absence. • While it is expected that members be present at all meetings, the chair and staff liaison should be notified if a member knows in advance that he/she will be absent. • When reviewing commissioners for reappointment, overall attendance at full commission meetings will be given significant consideration.

Compensation
• Members shall serve without compensation (unless specifically provided) for their services, provided, Resolution No. XXXX

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however, members shall receive reimbursement for necessary travel expenses and other expenses incurred on official duty when such expenditures have been authorized by the City Council (See Policy CC-91-002).

Conflict of interest and disclosure requirements
• A Conflict of Interest Code has been updated and adopted by the City Council and the Community Development Agency pursuant to Government Code §87300 et seq. Copies of this Code are filed with the City Clerk. Pursuant to the adopted Conflict of Interest Code, members serving on the Planning Commission are required to file a Statement of Economic Interest with the City Clerk to disclose personal interest in investments, real property and income. This is done within 30 days of appointment and annually thereafter. A statement is also required within 30 days after leaving office. • If a public official has a conflict of interest, the Political Reform Act may require the official to disqualify himself or herself from making or participating in a governmental decision, or using his or her official position to influence a governmental decision. Questions in this regard may be directed to the City Attorney.
• In accordance with Resolution No. 6622, current and future members of the Community Engagement and Outreach Committee, Complete Streets Commission, and Housing Commission, are required to report any and all real property in Menlo Park for impacting land use, real property, and the housing element.

Qualifications, compositions, number
• In most cases, members shall be residents of the City of Menlo Park and at least 18 years of age. • Current members of any other City commission/committee are disqualified for membership, unless the regulations for that advisory body permit concurrent membership. Commission/Committee members are strongly advised to serve out the entirety of the term of their current appointment before seeking appointment on another commission/committee.
• Commission/Committee members shall be permitted to retain membership while seeking any elective office. However, members shall not use the meetings, functions or activities of such bodies for purposes of campaigning for elective office.
• There shall be seven (7) members on each commission/committee with the exception of:
• Community Engagement and Outreach Committee – fourteen (14) members • Complete Streets Commission – nine (9) members
• Finance and Audit Committee – five (5) members
• Housing Commission – seven (7) members
• Library Commission – eleven seven (117) members
Reappointments, resignations, removals
• Incumbents seeking a reappointment are required to complete and file an application with the City Clerk by the application deadline. No person shall be reappointed to a commission/committee who has served on that same body for two consecutive terms; unless a period of one year has lapsed since the returning member last served on that commission/committee (the one-year period is flexible subject to City Council’s discretion).
• Resignations must be submitted in writing to the City Clerk, who will distribute copies to City Council and appropriate staff.
• The City Council may remove a member by a majority vote of the City Council without cause, notice or hearing.

Term of office
• Unless specified otherwise, the term of office for all commission/committee shall be four (4) years unless a resignation or a removal has taken place. The Finance and Audit Committee term of office shall be two (2) years. The Community Engagement and Outreach Committee term is for eighteen Resolution No. XXXX

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(18) months.
• If a person is appointed to fill an unexpired term and serves less than two years, that time will not be considered a full term. However, if a person is appointed to fill an unexpired term and serves two years or more, that time will be considered a full term. • Terms are staggered to be overlapping four-year terms, so that all terms do not expire in any one year.
• If a member resigns before the end of his/her term, a replacement serves out the remainder of that term.

Vacancies
• Vacancies are created due to term expirations, resignations, removals or death. • Vacancies are listed on the City Council agenda and posted by the City Clerk in the City Council Chambers bulletin board and on the city website.
• Whenever an unscheduled vacancy occurs in any commission/committee, a special vacancy notice shall be posted within 20 days after the vacancy occurs. Appointment shall not be made for at least 10 working days after posting of the notice (Government Code 54974). • On or before December 31 of each year, an appointment list of all regular advisory commissions/committees of the City Council shall be prepared by the City Clerk and posted in the City Council Chambers bulletin board and on the City’s website. This list is also available to the public. (Government Code 54972, Maddy Act).

Roles and Responsibilities
Community Engagement and Outreach Committee
The Housing Element Community Engagement and Outreach Committee (CEOC) assists the City in ensuring a broad and inclusive community outreach and engagement process. Committee members help guide and provide feedback on the types and frequency of activities/events/meetings and the strategies and methods for communicating with the various stakeholders in the community.

Roles and responsibilities:
• Serve as an ambassador of the project and encourage people to participate in the process • Help guide and provide feedback on the community engagement plan • Serve as a community resource to provide information to and receive input from the community on matters related to community engagement and public outreach Complete Streets Commission
The Complete Streets Commission is charged primarily with advising the City Council on multi-modal transportation issues according to the goals and policies of the City’s general plan. This includes strategies to encourage safe travel, improve accessibility, and maintaining a functional and efficient transportation network for all modes and persons traveling within and around the City. The Complete Streets Commission's responsibilities would include:
• Coordination of multi-modal (motor vehicle, bicycle, transit and pedestrian) transportation facilities • Advising City Council on ways to encourage vehicle, multi-modal, pedestrian and bicycle safety and accessibility for the City supporting the goals of the General Plan • Coordination on providing a citywide safe routes to school plan • Coordination with regional transportation systems
• Establishing parking restrictions and requirements according to Municipal Code sections 11.24.026 through 11.24.028
Environmental Quality Commission
The Environmental Quality Commission is charged primarily with advising the City Council on matters involving environmental protection, improvement and sustainability. Specific focus areas include:
• Preserving heritage trees
• Using best practices to maintain city trees
Resolution No. XXXX

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• Preserving and expanding the urban canopy
• Making determinations on appeals of heritage tree removal permits • Administering annual Environmental Quality Awards program • Organizing annual Arbor Day Event; typically, a tree planting event • Advising on programs and policies related to protection of natural areas, recycling and waste reduction, environmentally sustainable practices, air and water pollution prevention, climate protection, and water and energy conservation.

Finance and Audit Committee
The Finance and Audit Committee is charged primarily to support delivery of timely, clear and comprehensive reporting of the City’s fiscal status to the community at large. Specific focus areas include:
• Review the process for periodic financial reporting to the City Council and the public, as needed • Review financial audit and annual financial report with the City’s external auditors • Review of the resolution of prior year audit findings • Review of the auditor selection process and scope, as needed Housing Commission
The Housing Commission is charged primarily with advising the City Council on housing matters including housing supply and housing related problems. Specific focus areas include:
• Community attitudes about housing (range, distribution, racial, social-economic problems) • Programs for evaluating, maintaining, and upgrading the distribution and quality of housing stock in the City
• Planning, implementing and evaluating City programs under the Housing and Community Development Act of 1974
• Members serve with staff on a loan review committee for housing rehabilitation programs and a first time homebuyer loan program
• Review and recommend to the City Council regarding the Below Market Rate (BMR) program • Initiate, review and recommend on housing policies and programs for the City • Review and recommend on housing related impacts for environmental impact reports • Review and recommend on State and regional housing issues • Review and recommend on the Housing Element of the General Plan • The five most senior members of the Housing Commission also serve as the members of the Relocation Appeals Board (City Resolution 4290, adopted June 25, 1991).

Library Commission
The Library Commission is charged primarily with advising the City Council on matters related to the maintenance and operation of the City’s libraries and library systems. Specific focus areas include:
• The scope and degree of library activities
• Maintenance and protection of City libraries
• Evaluation and improvement of library service
• Acquisition of library materials
• Coordination with other library systems and long range planning • Literacy and ESL programs
Parks and Recreation Commission
The Parks and Recreation Commission is charged primarily with advising the City Council on matters related to City programs and facilities dedicated to recreation. Specific focus areas include:

Resolution No. XXXX

Page 11 of 13 ends

COMMISSIONS/COMMITTEES POLICIES AND PROCEDURES, ROLES AND RESPONSIBILITIES City Council Policy #CC-2122-004 10
Effective 6/08/202103/01/2022
Resolution No. 6631XXXX
• Those programs and facilities established primarily for the participation of and/or use by residents of the City, including adequacy and maintenance of such facilities as parks and playgrounds, recreation buildings, facilities and equipment
• Adequacy, operation and staffing of recreation programs • Modification of existing programs and facilities to meet developing community needs • Long range planning and regional coordination concerning park and recreational facilities Planning Commission
The Planning Commission is organized according to State Statute. • The Planning Commission reviews development proposals on public and private lands for compliance with the General Plan and Zoning Ordinance.
• The Commission reviews all development proposals requiring a use permit, architectural control, variance, minor subdivision and environmental review associated with these projects. The Commission is the final decision-making body for these applications, unless appealed to the City Council.
• The Commission serves as a recommending body to the City Council for major subdivisions, rezoning’s, conditional development permits, Zoning Ordinance amendments, General Plan amendments and the environmental reviews and Below Market Rate (BMR) Housing Agreements associated with those projects.
• The Commission works on special projects as assigned by the City Council.

Special Advisory Bodies
The City Council has the authority to create standing committees, task forces or subcommittees for the City, and from time to time, the City Council may appoint members to these groups. The number of persons and the individual appointee serving on each group may be changed at any time by the City Council. There are no designated terms for members of these groups; members are appointed by and serve at the pleasure of the City Council.

Any requests of city commissions or committees to create such ad hoc advisory bodies shall be submitted in writing to the City Clerk for City Council consideration and approval.

Procedure history
Action Date Notes
Procedure adoption 1991 Resolution No. 3261
Procedure adoption 2001
Procedure adoption 2011
Procedure adoption 2013 Resolution No. 6169
Procedure adoption 2017 Resolution No. 6377
Procedure adoption 6/8/2021 Resolution No. 6631
Procedure adoption 3/1/2022 Resolution No. XXXX
Resolution No. XXXX

Page 12 of 13 ends

RESOLUTION NO. 6622

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK

APPROVING THE MENLO PARK ADVISORY BODIES REAL PROPERTY

REPORTING FORM AND REQUIRING CERTAIN ADVISORY BODIES OF THE CITY

OF MENLO PARK TO SUBMIT SAID FORM ON AN ANNUAL BASIS
WHEREAS, City Council adopts, by ordinance, reporting requirements of various financial interests that may present a conflict of interest for decision makers include public officials, governmental employees and consultants; and
WHEREAS, the City would require additional appointed officials who are not required to submit Form 700s as governed by the City’s conflict of interest code, to submit, on an annual basis, a report detailing real property interests within the City of Menlo Park; and WHEREAS, the reporting of real property in Menlo Park for advisory body members impacting land use, real property, and the housing element; and
WHEREAS, those required to report such interests include those officials and positions that impact, influence or advise on land use, real property, and the City’s general plan housing element; and
WHEREAS, the new reporting requirements would apply to current and future members of the Complete Streets Commission, and Housing Commission, and Housing Element Community Engagement and Outreach Committee.

NOW, THEREFORE, BE IT RESOLVED, the City shall require the reporting of real property in Menlo Park for advisory body members impacting land use, real property, and the housing element; and
BE IT FURTHER RESOLVED, these additional appointed officials who are not required to submit Form 700s as governed by the City’s conflict of interest code are to submit form on an annual basis.

I, Judi A. Herren, City Clerk of Menlo Park, do hereby certify that the above and foregoing City Council Resolution was duly and regularly passed and adopted at a meeting by said City Council on the twenty-seventh day of April, 2021, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this twenty- seventh day of April, 2021.

Judi A. Herren, City Clerk

EXHIBIT B
Resolution No. XXXX

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RESOLUTION NO. 6622

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK

APPROVING THE MENLO PARK ADVISORY BODIES REAL PROPERTY

REPORTING FORM AND REQUIRING CERTAIN ADVISORY BODIES OF THE CITY

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this twenty- seventh day of April, 2021.

Judi A. Herren, City Clerk

EXHIBIT B
Page F-2.16
Library and Community Services
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org

STAFF REPORT
City Council
Meeting Date: 3/1/2022
Staff Report Number: 22-035-CC
Consent Calendar: Authorize the city manager to extend the Joint-Use Library Initiative Memorandum of Understanding
with Ravenswood City School District for Belle
Haven branch library operations at Belle Haven
School
Recommendation
Staff recommends that the City Council authorize the city manager to extend the Joint-Use Library Initiative Memorandum of Understanding (Attachment A) between the City of Menlo Park (City) and Ravenswood City School District (RCSD) to operate a community branch library in Belle Haven School for 24 additional months through June 30, 2024, or until ninety (90) days have elapsed after certificate of occupancy is issued for the Menlo Park Community Campus (MPCC) project, whichever comes first.

Policy Issues
City Council has sole authority to authorize the city manager to negotiate, execute, and/or renew agreements on behalf of the City.

Background
Belle Haven Branch Library (branch library) is operated by the City of Menlo Park and is located in the Belle Haven School facility owned by RCSD. The City and RCSD in 2020 renewed the Joint-Use Library Initiative Memorandum of Understanding (MOU) to articulate roles and responsibilities regarding the branch library operations and facility. The current MOU is due to expire June 30, 2022 (Attachment B.) The MPCC project is under construction and is anticipated to open in summer 2023. When the MPCC is completed, the City will relocate branch library operations from Belle Haven School to the MPCC. Until the MPCC project is completed and the relocation of branch library operations to the new facility is complete, it is desirable and in the best interests of the community to continue to operate the branch library at Belle Haven School.

Analysis
Staff recommends extending the current MOU term for 24 additional months through June 30, 2024, or until ninety (90) days have elapsed after certificate of occupancy is issued for the MPCC project, whichever comes first (Attachment A.)
This approach will:
• Allow branch library operations to continue in the Belle Haven School facility without interruption until the new facility opens
AGENDA ITEM F-3
Page F-3.1
Staff Report #: 22-035-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org • Allow the option to continue branch library operations uninterrupted at Belle Haven School in the event unforeseen delays in MPPC construction or occupancy arise that delay the opening date past summer 2023
• Provide a 90-day window after the MPCC opens to conduct a seamless decommissioning of Cityoperated library services at Belle Haven School after branch library operations have relocated to the new facility.

Staff recommends no other changes to the existing MOU at this time. On February 10, 2022, the RCSD board of trustees authorized the superintendent of schools to extend the MOU (Attachment C.) Impact on City Resources
There is no impact on City resources.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Renewal agreement
B. Current agreement
C. Hyperlink – Ravenswood City School District Board of Trustees authorization for the superintendent of schools to extend the MOU; February 10, 2022: agendaonline.net/public/ravenswood/ Report prepared by:

Sean S. Reinhart, Library and Community Services Director Page F-3.2

EXTENSION OF THE JOINT-USE LIBRARY INITIATIVE

MEMORANDUM OF UNDERSTANDING (MOU)

BETWEEN RAVENSWOOD CITY SCHOOL DISTRICT

AND CITY OF MENLO PARK
WHEREAS, Ravenswood City School District (“RCSD”) and City of Menlo Park (“City”) desire to renew the existing Joint-Use Library Initiative Memorandum of Understanding (“MOU”) for operations of the Belle Haven Community Library located at 413 Ivy Drive in Menlo Park, California; and, WHEREAS, the existing MOU is set to expire on June 30, 2022; and, WHEREAS, the COVID-19 pandemic created previously unforeseen design, supply chain and logistical delays, resulting in a revised opening date for the new community library at the Menlo Park Community Campus (MPCC) now under construction; and,
WHEREAS, RSCD and City mutually desire to extend the term of the MOU to allow community library operations to continue at Belle Haven School without interruption until MPCC facility construction is complete and the facility opens to the public; and,
WHEREAS, RCSD and City mutually desire to provide up to ninety (90) days after the MPCC opens to allow for a seamless decommissioning, transition and relocation of City-operated library services from Belle Haven School to the MPCC; and,
WHEREAS, RCSD and City mutually desire to make no other changes to the existing MOU at this time, except for term extension noted above;
NOW, THEREFORE, RCSD and City hereby agree to renew the Joint-Use Library Initiative Memorandum of Understanding (“MOU”) for operations of the Belle Haven Community Library through June 30, 2024, or until ninety (90) days have elapsed after the Certificate of Occupancy is issued for the Menlo Park Community Campus facility, whichever comes first.

IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have affixed their hands:

CITY OF MENLO PARK
Justin I. C. Murphy Date
Interim City Manager, City of Menlo Park

RAVENSWOOD CITY SCHOOL DISTRICT
Gina Sudaria Date
Superintendent of Schools
Attachment: Joint-Use Library Initiative Memorandum of Understanding ATTACHMENT A Page F-3.3

RENEWAL OF THE JOINT-USE LIBRARY INITIATIVE

MEMORANDUM OF UNDERSTANDING (MOU)

BETWEEN RAVENSWOOD CITY SCHOOL DISTRICT

AND CITY OF MENLO PARK
renew the existing Jointfor operations of the Belle Haven Community Library located at 413 Ivy Drive in Menlo Park, California; and,
WHEREAS, the existing MOU is set to expire on June 30, 2020; and, WHEREAS, RSCD and City mutually desire to extend the term of the MOU for twenty-four (24) additional months through June 30, 2022; and,
WHEREAS, RCSD and City mutually desire to make no other changes to the existing MOU at this time, except for term extension noted above;
NOW, THEREFORE, RCSD and City hereby agree to renew the Joint-Use Library Initiative Library for twenty-four (24) additional months through June 30, 2022.

IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have affixed their hands:

CITY OF MENLO PARK
Starla Jerome-Robinson Date
City Manager, City of Menlo Park

RAVENSWOOD CITY SCHOOL DISTRICT
Gina Sudaria Date
Superintendent of Schools
Attachment: Joint-Use Library Initiative Memorandum of Understanding Page F-3.4 ATTACHMENT B
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Library and Community Services
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org

STAFF REPORT
City Council
Meeting Date: 3/1/2022
Staff Report Number: 22-036-CC
Consent Calendar: Adopt a resolution accepting and appropriating a California State Library grant in the amount of
$20,000 to develop and circulate Read Together
Diversity Kits through the Belle Haven branch
library
Recommendation
Staff recommends that City Council adopt a resolution (Attachment A) accepting and appropriating a California State Library grant in the amount of $20,000 to develop and circulate Read Together Diversity Kits through the Belle Haven branch library.

Policy Issues
City Council authorizes the acceptance of grant awards to support City of Menlo Park operations, services and projects.

Background
The Library Services and Technology Act (LSTA) since 1996 has provided federal grant funding to state and local libraries for a variety of library and literacy programs, services and projects. LSTA grants are administered at the local level by the California State Library and are intended to help California’s libraries respond effectively to local needs and align services with local community aspirations; support experimentation and research and development in California’s libraries; and provide training and support in grant writing and grant management for the California library community. LSTA grants are regularly made available to libraries and the City of Menlo Park has been awarded and accepted LSTA grants in the past.

Analysis
On December 30, 2021, the City of Menlo Park was awarded a $20,000 LSTA grant from the California State Library to develop and circulate Read Together Diversity Kits through the Belle Haven branch library during calendar year 2022 (Attachment B.)
Standardized assessments of student academic outcomes at Belle Haven Elementary School indicate that additional early education and literacy supports could help some Belle Haven students to achieve academic outcomes that are consistent with those measured in other Menlo Park elementary schools.

The City of Menlo Park, through the Library and Community Services Department, in 2021 received notification of available LSTA grant funding to support childhood literacy and educational outcomes at the local level. The Library and Community Services Department applied for LSTA grant funding to develop and circulate Read Together Diversity Kits through the Belle Haven branch library to help improve English language literacy of incoming kindergarten children.

AGENDA ITEM F-4
Page F-4.1
Staff Report #: 22-036-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org The Read Together Diversity Kit concept was successfully developed, implemented, and evaluated by another library jurisdiction that received LSTA “CopyCat” grant funding for the project in a prior funding cycle. The City of Menlo Park’s grant proposal duplicates this proven concept and adapts the selection of books and support materials in accordance with local student needs.

Grant funds will be used to purchase books and tote bags for the kits, and for the costs associated with the promotion and distribution of the kits through the Belle Haven branch library. The grant award will provide sufficient funds to purchase and assemble 160 kits with four to six age-appropriate books for each kit. The program will incorporate themes selected by Belle Haven community parents and caregivers of children from birth to first grade. In addition to books, the kits will include related educational materials and manipulatives such as stuffed animals and educational games and toys. Each kit will also include instructions to parents and caregivers on techniques for reading to children with intention and by incorporating early literacy strategies; story time songs; suggestions for similar books available in the library; and related interpretive materials. All instructional and interpretive materials will be bilingual EnglishSpanish. Half or more of the kits will include English-Spanish bilingual books.

Impact on City Resources
There is no new impact to the City’s general fund operating budget associated with this grant.

Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §15378 and §15061(b)(3) as it will not result in any direct or indirect physical change in the environment.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Resolution
B. Grant award notification letter and budget
Report prepared by:

Cholé Tiscornia, Librarian II
Nick Szegda, Assistant Library Services Director
Report reviewed by:

Sean S. Reinhart, Library and Community Services Director Page F-4.2
RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK

ACCEPTING AND APPROPRIATING A CALIFORNIA STATE LIBRARY
GRANT IN THE AMOUNT OF $20,000 TO DEVELOP AND CIRCULATE READ

TOGETHER DIVERSITY KITS THROUGH THE BELLE HAVEN BRANCH

LIBRARY
WHEREAS, the City of Menlo Park operates the Belle Haven Branch Library; and WHEREAS, the purpose of the Belle Haven Branch Library, in part, is to give all children access to books and help improve their literacy skills; and
WHEREAS, the City of Menlo Park has been awarded Library Services and Technology Act grant funding from the California State Library in the amount of $20,000 to circulate “Read Together” diversity kits through the Belle Haven Branch Library in calendar year 2022; NOW THEREFORE BE IT RESOLVED, that the City of Menlo Park, accepts and appropriates the California State Library grant award in the amount of $20,000 to purchase materials and services to circulate “Read Together” diversity kits through the Belle Haven Branch Library in calendar year 2022.

I, Judi A. Herren, City Clerk of Menlo Park, do hereby certify that the above and foregoing City Council resolution was duly and regularly passed and adopted at a meeting by said City Council on the first day of March, 2022, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of March, 2022.

Judi A. Herren, City Clerk
Page F-4.3 ATTACHMENT A
December 30, 2021
Nicholas Szegda, Assistant Library Services Director
The City of Menlo Park
800 Alma Street
Menlo Park, CA 94025-3446
Dear Mr. Szegda:

We are pleased to approve the grant application for the Read Together Kits: Bringing Diverse Literature Home project for a total of $20,000 in federal Library Services and Technology Act (LSTA) funds.

Hard copies of this correspondence will not follow. Keep the entirety of this correspondence for your files and consider these award materials your original documents. Please refer to the Grant Guide located on the California State Library’s Manage Your Current Grant webpage (https://www.library.ca.gov/grants/manage/) for more information and review the following:

LSTA Funds
Processing of grant payments may take from eight to ten weeks before delivery. If you have not received payment ten weeks after submitting your claim form to the State Library’s Fiscal Department, please contact your Grant Monitor.

Project Support
There are two people assigned to your project. The first is your Grant Monitor. Contact them regarding compliance and reporting. The Grant Monitor assigned to your project is Michelle Killian and can be reached via email at [email protected]. You are also assigned a Project Advisor for ongoing programmatic support. The Project Advisor assigned to your project is Jane Dyer Cook and can be reached via email at [email protected].

Please stay in touch with your Grant Monitor and Project Advisor throughout the award period.

Read the enclosed award packet thoroughly and contact your Grant Monitor if you have any questions.

Best wishes for a successful project.

Respectfully yours,
Greg Lucas
California State Librarian
cc: Chole' Tiscornia [email protected]
Jane Dyer Cook
Michelle Killian
Nicole Bravin
Angie Shannon
Reed Strege
Natalie Cole
DocuSign Envelope ID:

Page F-4.4 ATTACHMENT B
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Community Development

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org

STAFF REPORT
City Council
Meeting Date: 3/1/2022
Staff Report Number: 22-043-CC
Consent Calendar: Adopt a resolution to update the following of the Below Market Rate Housing Program Guidelines:
1) purchase and rental interest list eligibility criteria and 2) general programming-related descriptions
Recommendation
Staff recommends the City Council adopt a resolution (Attachment A) to update the following of the Below Market Rate Housing Program Guidelines (BMR guidelines): 1) the purchase and rental interest list eligibility criteria, often referred to as program preferences, and 2) general programming-related descriptions.

Policy Issues
The City of Menlo Park’s 2015-2023 Housing Element program H4.C calls for the City to modify the BMR guidelines. The City Council may approve changes to the BMR guidelines by way of resolution. The City’s BMR housing program is intended to increase the housing supply for households that have extremely low, very low, low and moderate incomes compared to the median income for San Mateo County. The BMR guidelines govern the administrative practices of the BMR housing program in multiple areas including, but not limited to, development requirements, in-lieu fees, unit standards, interest list procedures, etc.

Background
On April 1, 2014, the City Council adopted the 2015-2023 City of Menlo Park Housing Element. The Housing Element, included in the General Plan, establishes housing objectives, policies and programs in response to community housing conditions and needs. The BMR guidelines assist with the implementation of certain policies and are updated from time to time by the City Council.

The most recent updates to the BMR guidelines were approved by City Council resolution in 2018. A BMR ad hoc subcommittee comprised of Housing Commissioners met with staff and community groups starting in 2017 to identify potential changes before a review by the Housing Commission and Planning Commission was accomplished in 2018. The City Council approved Resolution No. 6432 April 17, 2018, to better align the BMR guidelines with State law, and Resolution No. 6446 June 19, 2018, to capture recommendations from staff and the Housing and Planning Commissions. At that time, staff identified the expectation to return to the City Council with additional modifications to the BMR guidelines.

In early 2021, the Housing Commission reinstated a BMR guidelines ad hoc subcommittee (subcommittee) to assist with identifying additional updates. On October 6, 2021, the subcommittee provided a presentation to the Housing Commission, which highlighted potential modifications to the BMR guidelines. The presentation included potential amendments to the interest list preference criteria and inclusionary requirements for BMR ownership and rental units.

AGENDA ITEM F-5 Page F-5.1
Staff Report #: 22-043-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org The item before the City Council in this staff report focuses on the amendments to the interest list preference criteria and general program description edits to better align with operations of the BMR program. Provided in staff report item D3 from the February 2, 2022 Housing Commission meeting, staff recommended potential modifications to the BMR guidelines (Attachment B.) The proposed amendments to the BMR guidelines focused on updates to the preference criteria for accessible units, displaced households, unhoused persons, and persons who live and/or work in the City. Staff also proposed modifications to programming-related descriptions in the BMR guidelines that were outdated and did not follow best practices for affordable housing administration. The Housing Commission voted 5-0-1 (Commissioner Leitch absent) to approve the recommended changes to the BMR guidelines, including the following changes to section 8.1:
• Displacement preference – delete criteria for persons living in Menlo Park in 2008 • Unhoused preference – the Housing Commission requested the inclusion of specific terminology for “current” unhoused residents, which upon further review from staff is already included in the unhoused preference.
• Accessible unit preference – multiple changes suggested to preferences for accessible units, which will be discussed in the analysis of this report.

A second stage of edits to the BMR guidelines will require additional staff analysis and a contracted study to evaluate changes to the commercial linkage fees, inclusionary requirement standards and in-lieu fees specific to inclusionary residential requirements. To ensure any additional updates to the BMR guidelines are studied in conjunction with the sixth Cycle Housing Element Update process, staff expects a minimum of six to eight months before proposals would return to the Housing Commission for initial review. This timeline is subject to change as staff continues to evaluate the scope of work and costs of a potential study.

Analysis
When BMR ownership and/or rental unit(s) become available, staff works closely with the City’s BMR administrator HouseKeys and property owners to advertise the units. Marketing efforts are made directly to persons and households on the City’s BMR ownership and rental interest list, often referred to as the interest list, as well as through other general advertising practices to publicize the affordable housing opportunities to households not on the interest list. Similar to many cities throughout the Bay Area, the City of Menlo Park has seen dramatic increases in property values over the last 15 to 20 years. Menlo Park is among the most desired cities in our region, which has resulted in home prices and rents exceeding the averages of many other Bay Area cities. The proposed amendments to the BMR guidelines, found in Exhibit A of Attachment A, allows the City to expand the current preference criteria to better serve a wider range of persons and households seeking affordable housing opportunities. Sections of the BMR guidelines with considerable changes and/or updates related to preference criteria are highlighted below. Changes made to the guidelines that are not listed in specific detail in the analysis section of this report are considered general programming-related description edits and “clean up” to terminology to align the BMR guidelines with standard program administration practices.

BMR preference criteria
The BMR guidelines’ preference criteria, listed in section 8.1, allows all interested persons and households who income qualify to apply for BMR units in Menlo Park and enter into a lottery drawing for the available unit(s.) Staff believes it is important to highlight that a person or household who does not meet any of the provisions of the preference criteria, also referred to as zero or no preference, are encouraged to apply for available BMR units. Persons or households that meet one or multiple preferences will receive a final lottery ranking higher than persons or households with no preference. All income eligible persons and/or households applying for an available BMR unit will be placed in the same lottery drawing; however, the final Page F-5.2
Staff Report #: 22-043-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org lottery ranking order will be weighted to adjust for persons and/or household who qualify for a Menlo Park preference.

Accessible unit preference
The City’s existing BMR guidelines provide minimal preference for persons and households with accessibility needs. Preference is currently limited to wheelchair users only. To expand beyond wheelchair users and minimize unintentional discrimination to persons with other types of mobility challenges, the proposed preference include all persons with accessibility needs. This item was discussed by the Housing Commission at the February 2, 2022 meeting, whom collectively agreed all accessible needs should be included. When an accessible unit becomes available, the Housing Commission and staff believe persons with accessibility challenges should receive the highest preference due to the lower percentage of accessible units that are produced.

In section 8.1 of the proposed BMR guidelines, staff included additional language to clearly outline how an accessible BMR units will be filled in accordance with Menlo Park preference criteria. If a tenant meeting the accessibility criteria cannot be found, the BMR unit would be offered to other income qualified persons or households who have applied. The ranking of persons and households for accessible units should follow the below list from highest to lowest in the order of lottery ranking:
• Person or household with an accessibility need meeting an existing Menlo Park preference, such as live and/or work, unhoused or displacement preference.
• Person or household with an accessibility need not meeting an existing Menlo Park preference • Person or household meeting an existing Menlo Park preference • Person or household not meeting an existing Menlo Park preference Live and/or work preference
Due to the high cost burdens associated with finding housing not only in Menlo Park but in the entire region, extremely low, very low, low, and moderate income households face housing insecurity that could displace them from the region. To promote stable communities and prevent harm to the public welfare that could occur if households were dislocated from Menlo Park, the BMR guidelines include a preference for local residents to access BMR housing. The BMR guidelines also extend this preference to those who work in Menlo Park, which can help integrate workers into the community and reduce the high vehicle miles traveled (and associated greenhouse gas emissions) that result when workers are forced to commute great distances from their homes to their jobs. This preference also allows critical service providers who may not earn enough to afford market rate housing to have housing opportunities in the City.

When implementing the live/work preference to accomplish the goals outlined above, it is important to design the preference to avoid unintentionally excluding protected classifications of people or infringing upon Constitutionally-protected fundamental rights. In particular, the right to travel is a fundamental right, and courts have held that durational residency requirements for admission to housing affect this fundamental right. To avoid this issue, staff is recommending that the City eliminate the durational requirement that an individual have lived or worked in the City for a defined period of time before being eligible for the live/work preference.

Likewise, to broaden the pool of potential applicants who will qualify and help mitigate the likelihood that the preference would result in unintentional discrimination, the proposed modifications expand employment to include both paid work and unpaid work. The City’s basis for offering a preference to those who work in the City does not depend on whether those workers are paid or unpaid, so the preference should apply to any eligible household that is working in the City, regardless of whether that work is paid or not. This provision will expand support for paid and unpaid workers providing services to the Menlo Park community.

Page F-5.3
Staff Report #: 22-043-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Displacement preference
In the 2018 version of the BMR guidelines, persons and households who are subsequently displaced from their home for reasons such as job loss, rent increases, etc. are provided a preference only if they resided within incorporated Menlo Park in the year 2008. With input from the Housing Commission, the proposed modifications include that the displacement preference apply to all displaced persons and households that have lived within incorporated Menlo Park for at least three or more years, regardless of the exact date they resided in the City. The reason for expanding this preference is to more universally allow long-term community members, defined as three or more years, in need of affordable housing an opportunity to return to Menlo Park. For reasons similar to the City’s need to offer a live and/or work preference, staff believes this change will be more inclusive of longtime residents who have had to move out of Menlo Park for a variety of reasons and economic hardships, some of who may still live and/or work in nearby communities and would not have qualified for a preference previously.

General programming description edits
The BMR guidelines contain a wide range of procedures related to program operations, including rules for development and affordable housing production. At this time, the majority of the proposed edits pertain to preference criteria and general program revisions. These proposed changes are expected to provide clarity and expand eligibility of the preference criteria in a manner that aligns with State and/or Federal fair housing laws. General programming description edits include the following items:
• Section/page number edits
• Updates in terminology (definitions, program titles, etc.) • Section 15, tables A-D updated to current 2021 requirements (income limits, maximum affordable rent, occupancy standards, commercial in-lieu fees)
Staff believes the recommended changes identified as general programming descriptions are necessary to ensure the City remains current with standard affordable housing practices. A copy of the proposed BMR guidelines with redline edits is available by way of Attachment C.

Impact on City Resources
There are no impacts to City resources besides the preparation of the report and continued coordination of the BMR housing program with the City’s designated BMR administrator.

Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§ 15378 and 15061(b)(3) as it will not result in any direct or indirect physical change in the environment
Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Draft City Council resolution adopting revisions to the BMR Guidelines B. Hyperlink – February 2, 2022 Housing Commission staff report (see agenda item D3):
beta.menlopark.org/files/sharedassets/public/our-community/agendas-and-minutes/housingPage F-5.4 Staff Report #: 22-043-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org commission/2022-meetings/20220202-housing-commission-agenda-packet.pdf C. Revisions to the BMR Housing Program Guidelines with redline edits Report prepared by:

Mike Noce, Acting Housing Manager
Reviewed by:

Deanna Chow, Assistant Community Development Director
Eric Phillips, Assistant City Attorney
Page F-5.5
RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK

ADOPTING REVISIONS TO THE BELOW MARKET RATE HOUSING

PROGRAM GUIDELINES
WHEREAS, the City of Menlo Park (“City”) established the Below Market Rate Housing Program Guidelines (“Guidelines”) on the twelfth day of January, 1988; and WHEREAS, the need to facilitate affordable housing opportunities for extremely low, very low, low and moderate-income households remain in Menlo Park; and WHEREAS, the City strives to continue improving the implementation of the Below Market Rate Housing Program with continued updates to the program guidelines; and WHEREAS, the City affirms its commitment to providing affordable housing opportunities to income-qualifying households; and
WHEREAS, the proposed modifications to the Guidelines ensure the City is proactively improving current practices for its affordable housing programs; and WHEREAS, the Housing Commission reviewed and recommended the City Council adopt the proposed changes to the Guidelines at its meeting on the second day of February, 2022; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of Menlo Park hereby adopts revisions to the Below Market Rate Housing Program Guidelines recommended by staff and Housing Commission, and presented to the City Council on the first day of March, 2022, incorporated herein as Exhibit A, govern the operation of the program from this date forward.

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of March, 2022.
_________________________________
Judi A. Herren, City Clerk
ATTACHMENT A Page F-5.6

CITY OF MENLO PARK

BELOW MARKET RATE HOUSING PROGRAM

GUIDELINES
Income Limits/Section 15, Tables A and B Updated for 2021-22 Originally Adopted by City Council on January 12, 1988
Revised by City Council on the following dates:
• December 17, 2002 (No Resolution)
• March 25, 2003 (Resolution No. 5433)
• January 13, 2004 (No Resolution)
• March 22, 2005 (Resolution No. 5586)
• March 2, 2010 (Resolution No. 5915)
• May 10, 2011 (No Resolution)
• May 6, 2014 (Resolution No. 6196)
• April 17, 2018 (Resolution No. 6432)
• June 19, 2018 (Resolution No. 6446)
• March 1, 2022 (Resolution No. 0000)
EXHIBIT A Resolution No. XXXX

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BELOW MARKET RATE HOUSING PROGRAM GUIDELINES
Table of Contents

1. Overview ..................................................................................................... 1

2. BMR Housing Agreement and Review Process .......................................... 1

3. Requirements for Developments by Type ................................................... 2

4. BMR Program Requirements for On-Site BMR Units,
Off-Site BMR Units and In Lieu Fees ........................................................... 4

5. Characteristics of BMR Units ....................................................................... 7

6. 7.

8. Household Definition and Criteria……………………………………………….

Eligibility Requirements for Households Applying to Purchase BMR Units… BMR Purchase and Rental Interest List Preference Criteria ….…………… 9 10
12 9. The BMR Unit Purchase Process: Buyer Selection and Sale Procedures.... 15

10. 11.

12. Occupancy Requirements for Owner-Occupied BMR Units………………….

Process for Resale of BMR Units………………………………………………..

Requirements for BMR Rental Developments ............................................. 18 19
20 13. Equivalent Alternatives ................................................................................ 22

14. Below Market Rate Housing Fund and Severability Clause ........................ 22

15. Tables .......................................................................................................... 25 Resolution No. XXXX

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1 1. OVERVIEW
The high cost and scarcity of housing in Menlo Park have been caused in large part because the number of jobs in Menlo Park has grown, but the supply of housing has not increased significantly. A majority of new employees earn low- and moderateincomes and are most severely impacted by the lack of affordable housing in Menlo Park. Because of the high cost of housing, families who seek to live in Menlo Park cannot afford to purchase homes here and are forced to rent. Many renters pay a disproportionately high amount of their incomes in rent.

1.1 Purpose. The City of Menlo Park's Below Market Rate (“BMR”) Housing Program is intended to increase the housing supply for households that have very low, low- and moderate-incomes compared to the median income for San Mateo County.

The primary objective is to obtain actual housing units, either "rental" or "for sale," rather than equivalent cash.

1.2 Enabling Legislation. The BMR Housing Program is governed by Chapter 16.96 of the Municipal Code. The BMR Housing Program is administered under these BMR Housing Program Guidelines (“Guidelines”).

2. BMR HOUSING AGREEMENT AND REVIEW PROCESS

2.1 BMR Housing Agreement. Before acceptance of plans for review by the City of Menlo Park staff, a developer should provide a proposal for meeting the requirements of the BMR Housing Program. The proposal should include one or a combination of the following alternatives: a) Provision of BMR units on site; and/or b) Provision of BMR units off-site; and/or c) Payment of an in-lieu fee. These alternatives are listed in order of preference.

2.2 Review Steps. The following review steps apply to most development projects:
• City staff will review a BMR For-Sale Agreement or an Affordability Housing Agreement (either, a “BMR Housing Agreement”), that has been prepared by the developer’s attorney on a form substantially similar to that provided by the City and shall make a recommendation with respect to it to the Housing Commission, and, if applicable, to the Planning Commission and/or the City Council. The City Attorney must approve as to form the BMR Housing Agreement prior to its review by the Planning Commission.
• The City Council grants approval of the BMR Housing Agreement for projects which it reviews. For all other projects, the BMR Housing Agreement shall be approved by the entity having final approval authority over the project.

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2 3. REQUIREMENTS FOR DEVELOPMENTS BY TYPE

3.1 Commercial Developments. The BMR Housing Program requires commercial developments which bring employees to Menlo Park to provide BMR units or to contribute to the BMR Housing Fund that is set up to increase the stock of housing for very low, low and moderate income households, with preference for workers whose employment is located in the City of Menlo Park, and for City residents.

3.1.1 Commercial Development Requirements. Commercial buildings of 10,000 square feet or more gross floor area are required to mitigate the demand for affordable housing created by the commercial development project. In order to do so, it is preferred that a commercial development project provide BMR housing on-site (if allowed by zoning) or off-site (if on-site BMR units are infeasible). A density bonus of up to 15% above the density otherwise allowed by zoning may be permitted when BMR housing is provided on-site. The BMR Housing Agreement will detail the BMR Housing Program participation of a particular development.

Although the provision of actual BMR units is strongly preferred, it is not always possible to provide BMR housing units. In such cases, the developer shall pay a commercial inlieu fee rather than provide actual BMR housing units. Commercial in-lieu fees must be paid prior to the issuance of a building permit.

Commercial in-lieu fees are charged at different rates to two groups based on the employee housing demand the uses produce. Group A uses are office and research and development ("R&D”). Group B uses are all other uses not in Group A.

Commercial in-lieu fee rates are adjusted annually on July 1st. The amount of the adjustment is based on a five-year moving average of the percentage increase in the Consumer Price Index (Shelter Only) for All Urban Consumers in the San FranciscoOakland-San Jose area. Refer to Section 15, Table D, for the Commercial In-lieu Fee Rates, which may be updated by City staff from time to time.

3.1.2 Applicability. The BMR Housing Program applies to conditional use permits, conditional development permits, planned development permits, subdivision approvals, architectural control approvals, variance approvals and building permits for any commercial development. The BMR Housing Program also applies to the construction of any new square footage or any square footage that is converted from an exempt use to a non-exempt use. Finally, the BMR Housing Program applies to the conversion of floor area from a less intensive use (Commercial/Industrial uses) to a more intensive use (Office/R&D).

3.1.3 Exemptions. The following are exempted from the BMR Housing Program:
(a) Private schools and churches;
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3 (b) Public facilities;
(c) Commercial development projects of less than 10,000 square feet; and (d) Projects that generate few or no employees.

3.2 Residential Developments. The BMR Housing Program requires residential developments which use scarce residentially zoned land in Menlo Park to provide BMR units or to contribute to the BMR Housing Fund. The BMR Housing Fund is set up to increase the stock of housing for very low-, low- and moderate-income families, with preference for workers whose employment is located in the City of Menlo Park, and for City residents.

3.2.1 Residential Development Requirements. Residential developments of five or more units are subject to the requirements of the BMR Housing Program. These requirements also apply to condominium conversions of five units or more. As part of the application for a residential development of five or more units, the developer must submit a BMR Housing Agreement, in a form substantially similar to that provided by the City, which details the developer's plan for participation in the BMR Housing Program. No building permit or other land use authorization may be issued or approved by the City unless the requirements of the BMR Program have been satisfied.

3.2.2 Condominium Conversions. If an apartment complex already participating in the BMR Housing Program elects to convert the complex to condominiums, then the existing BMR rental apartments shall be converted to BMR condominium units under the BMR Housing Program.

When market rate rental units are removed from the rental housing stock for conversion to condominiums, and they are not already participating in the BMR Housing Program, then the project shall meet the same requirements as new developments to provide BMR units in effect at the time of conversion. When the property owner notifies the City of the intent to sell, the property owner shall notify any BMR tenants of such units of the pending sale and non-renewal of lease. Such tenant(s) shall be given the right of first refusal to purchase the unit. If the tenant seeks to purchase the unit, at the close of escrow the unit shall exist as a for-sale BMR unit. If the tenant does not seek to purchase, the tenant shall vacate the unit at the expiration of the current lease term and the unit will be sold to an eligible third party according to the BMR Guidelines and held as a for-sale BMR unit. The tenant who vacates will have priority to move to other vacant BMR rental units in the City for two years from the date the lease expired, regardless of the place of residence of the displaced BMR tenant.

3.3 Mixed Use Developments. Mixed use developments must comply with the requirements for commercial developments in the commercial portion of the development and must comply with the requirements for residential developments for the residential portion of the development.

3.4 Required Contribution for Residential Development Projects. All Resolution No. XXXX

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4 residential developments of five units or more are required to participate in the BMR Housing Program. The preferred BMR Housing Program contribution for all residential developments is on-site BMR units. For rental residential development projects, the applicant may comply with the City’s BMR requirements by providing in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units. Any alternative means of compliance shall be approved by the City Council upon findings that the alternative is commensurate with the applicable on-site requirement and complies with applicable BMR Guidelines.

For ownership residential development projects, if providing on-site BMR units is not feasible as confirmed by the City, developers are required to pay an in-lieu fee as described in Section 4.3. The requirements for participation increase by development size as shown below:

One (1) to Four (4) Units. Developers are exempt from the requirements of the BMR Housing Program.

Five (5) to Nine (9) Units. It is preferred that the developer provide one unit at below market rate to a very low, low, or moderate income household.

Ten (10) to Nineteen (19) Units. The developer shall provide not less than 10% of the units at below market rates to very low-, low- and moderate-income households.

Twenty (20) or More Units. The developer shall provide not less than 15% of the units at below market rates to very low-, low- and moderate-income households. On a case-by-case basis, the City will consider creative proposals for providing lower cost units available to lower income households such as smaller unit size, duet-style, and/or attached units that are visually and architecturally consistent with the market-rate units on the exterior, and that meet the City’s requirements for design, materials, and interior features of BMR units.

3.4.1 Fraction of a BMR Housing Unit. If the number of BMR units required for a residential development project includes a fraction of a unit, the developer shall provide either a whole unit, the preferred form of participation, or make a pro rata residential in lieu payment on account of such fraction per Section 4.3 or 4.4, as applicable.

Example: A residential project is developed with 25 condominium units. The BMR requirement of 15% equates to 3.75 units. The preferred BMR Housing Program participation is four BMR units. If four BMR units are provided, the developer would pay no in-lieu fee. Alternatively, if three BMR units are provided, the developer would have to pay an in-lieu fee for the remaining fractional BMR unit.

4. BMR PROGRAM REQUIREMENTS FOR ON-SITE BMR UNITS, OFF-SITE

BMR UNITS AND IN-LIEU FEES
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5 4.1 On-Site BMR Units.

4.1.1 Initial Price for For-Sale Unit. The initial selling price of BMR forsale units for extremely low (30% AMI), very low (50% AMI), subsidized low (60% AMI), low (80% AMI) or moderate (120% AMI) income households is based on what is affordable to households with incomes at the identified percentage of area median income (“AMI”) related to household size, as established from time to time by the State of California Housing and Community Development Department (“HCD”) for San Mateo County. See Section 15, Table A, which may be updated by City staff from time to time.

4.1.2 Initial Price for Rental Unit. The initial monthly rental amounts for BMR rental units will be equal to or less than thirty percent (30%) of the applicable income limits for extremely low, very low, subsidized low, low and moderate income households adjusted for occupancy, as established from time to time by the HCD for San Mateo County. In no case shall the monthly rental amounts for BMR units exceed seventy-five percent (75%) of comparable market rate rents. The maximum rent for specific BMR units will be based on Section 15, Table B of the BMR Guidelines, which may be updated by City staff from time to time. See also Sections 11.1.1 and 11.1.2.

The purchase or rental price for BMR units shall be established and agreed upon in writing in the BMR Housing Agreement per Section 2.2, prior to final building inspection for such BMR units. The provision of affordable units at extremely low, very low, low and/or moderate income levels shall be roughly equivalent to the provision of all of the affordable units at the low income level.

4.1.3 Bonus Unit. For each BMR unit provided, a developer shall be permitted to build one additional market rate (bonus) unit. However, in no event shall the total number of units in a development be more than fifteen percent (15%) over the number otherwise allowed by zoning.

4.2 Off-Site BMR Units. If authorized by the City as described in Section 2.2, developers may propose to provide BMR units at a site other than the proposed development. These off-site BMR units must be provided on or before completion of the proposed development and must provide the same number of units at below market rates to very low, low and moderate income households as required for on-site developments. Such units may be new or existing. Provision by the developer and acceptance by the City of off-site units shall be described in the BMR Housing Agreement. Size, location, amenities and condition of the BMR units shall be among the factors considered by the City in evaluating the acceptability of the off-site BMR units.

For existing units, the developer shall be responsible for correcting, at developer’s expense, all deficiencies revealed by detailed inspection of the premises by qualified inspectors, including a certified pest inspector.

The initial price or rent for the BMR units shall be established as stated in Sections 4.1.1 and 4.1.2 and in accordance with the BMR Income Guidelines in Section 15 in effect at the time the BMR unit is ready for sale or rent. Fractions of required BMR units shall be Resolution No. XXXX

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6 handled by provision of an in-lieu fee for the market rate units for which no BMR unit is provided.

4.3 Ownership Residential In Lieu Payments Based on Sales Price.

4.3.1 Developments of Ten (10) or More Units. In developments of 10 or more units, the City will consider an in-lieu payment alternative to required BMR units only if the developer substantiates to the City's satisfaction that the BMR units cannot be provided on or off-site. In developments of 10 or more units which provide BMR units, upon the close of escrow on the sale of each unit in the subdivision for which a BMR unit has not been provided, the developer shall pay to the City an in-lieu payment calculated at three percent (3%) of the actual sales price of each unit sold. In lieu payments for fractions of BMR units shall be determined by disregarding any bonus units and as three percent (3%) of selling price of each market rate unit sold if the developer substantiates to the City's satisfaction that the BMR units cannot be provided on or off-site.

If a portion of a BMR requirement is met by a provision of BMR units, and the developer substantiates to the City’s satisfaction that a sufficient number of BMR units cannot be provided on or off-site, then BMR in-lieu payments will be required from the sales of the number of market rate units (excluding bonus units) that is in proportion to the BMR requirement that is not met.

4.3.2 Developments of Five (5) to Nine (9) Units.

Residential In-Lieu Payments Based on Sales Price. In developments of five to nine units, the City will consider an in-lieu payment alternative to required BMR units only if the developer cannot provide an additional BMR unit. If providing an additional BMR unit is not feasible, developers are required to pay a residential in lieu fee as described below.

Unit No. In lieu fee for each unit
1, 2 and 3 1% of the sales price
4, 5 and 6 2% of the sales price
7, 8 and 9 3% of the sales price
Example: In a development of seven units, the BMR contribution would be, in order of preference: a) One BMR unit out of the seven units, with the possibility of a density bonus of one unit, or, if that is not feasible, b) Three units designated to pay an in-lieu fee of one percent (1%) of the sales price, three units to pay in-lieu fees of two percent (2%) of their sales prices and one unit to pay three percent (3%) of its sales price.

Units paying in-lieu fees are designated so that they are distributed by unit size and location throughout the project.

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7 In developments of 10 or more units which provide BMR units, upon the close of escrow on the sale of each unit in the subdivision for which a BMR unit has not been provided, the developer shall pay to the City an in-lieu payment calculated at three percent (3%) of the actual sales price of each unit sold.

Example: Two possible plans to meet the BMR requirement for a project of 15 housing units are, in order of preference: a) Two BMR units are provided, and no in-lieu fees are paid, or b) One BMR unit is provided out of the first 10 units, one bonus unit is granted for the provision of the BMR unit, and four units pay in-lieu fees.

Units held as rental, in-lieu fee. If the developer retains any completed unit as a rental, either for its own account or through subsidiary or affiliated organizations, the BMR contribution including BMR housing unit or in-lieu payment for such unit shall be negotiated between the developer and the City. If an in-lieu fee is paid, the market value shall be based on an appropriate appraisal by an appraiser agreed upon by the City and the developer and paid for by the developer. The basis for such appraisal shall be as a condominium rather than as a rental.

4.4 Rental Residential In Lieu Payments Based on Cost. The City Council shall establish a rental residential in-lieu fee by resolution, which fee may be updated from time to time. The fee shall be based on the cost to develop, design, construct, and maintain a standard one-bedroom unit in Menlo Park. The fee shall also include the proportionate costs of associated common area as well as land acquisition costs. The fee shall be adjusted on a project-by-project basis depending on size, location and other factors relevant to cost. The fee can be adjusted by a pre-set formula or by a consultant selected by the City and funded by the applicant.

5. CHARACTERISTICS OF BMR UNITS

5.1 Size and Location of BMR Units. BMR housing units shall generally be of the same proportionate size (number of bedrooms and square footage) as the marketrate units. The BMR units should be distributed throughout the development, and should be indistinguishable from the exterior. BMR units shall contain standard appliances common to new units, but need not have luxury accessories, such as Jacuzzi tubs. The Planning Commission and/or City Council shall have the authority to waive these size, location and appearance requirements of BMR units in order to carry out the purposes of the BMR Housing Program and the Housing Element.

5.2 Design and Materials in BMR Units. The design and materials used in construction of BMR units shall be of a quality comparable to other new units constructed in the development but need not be of luxury quality.

5.3 The BMR Price Must Be Set Before Final Building Inspection. There shall be no final inspection of BMR housing units until their purchase or rental prices have been agreed upon in writing by the developer and the City Manager, or his or her designee. Also, the sale or rental process will not begin until the sales price is set.

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8 5.3.1 Final Inspection Schedule for Smaller and Larger Developments.

Less Than Ten (10) Units. In developments of less than 10 units with one or more BMR units, all BMR units must pass final inspection before the last market rate unit passes final inspection.

Ten (10) to Nineteen (19) Units. In developments of 10 or more units, including developments that are constructed in phases, for the first 10 housing units, a BMR unit must pass final inspection before nine market rate units may pass final inspection. For each additional group of 10 housing units, one additional BMR unit must pass final inspection before nine additional market rate units may pass final inspection.

Twenty (20) or More Units. In developments of 20 or more units, including developments that are constructed in phases, for the first 10 housing units, a BMR unit must pass final inspection before nine market rate units may pass final inspection. In addition, two additional BMR units must pass final inspection before eight additional market rate units may pass final inspection. For each additional group of 20 housing units, three additional BMR units must pass final inspection before 17 additional market rate units may pass final inspection. No project or phase may pass final inspection unless all the BMR units, which equal 15% or more of the housing units in that phase or project, have passed final inspection for that phase or project.

Last Unit. In no case may the last market rate unit pass final inspection before the last BMR unit has passed final inspection.

5.4 Sales Price Determination for BMR For-Sale Units. The maximum sales price for BMR units shall be calculated as affordable to BMR households, which are eligible by income at the time that the maximum prices are set and which are of the smallest size eligible for the BMR units (excluding two-bedroom units, which shall be based on incomes for two person households even when units are made available to one person households). See Section 15, Table A, for income eligibility limits, and Table C, for occupancy standards, which tables may be updated by City staff from time to time.

The affordability of maximum prices will take into consideration mortgage interest rates, minimum down payments, mortgage debt-to-income ratios and other qualifying criteria used by lenders at the time the sales prices are set, as well as cost of insurance, taxes, homeowners’ dues and any other necessary costs of homeownership.

5.4.1 Price Determination for Projects with Condominium Maps That Will Rent for an Indefinite Period of Time. Projects with condominium subdivision maps that will rent BMR units for an indefinite period shall have basic sales prices established at the outset for such BMR units in accordance with the Guidelines. Such initial sales prices shall be adjusted for the period between the month of completion of the BMR units and the month of notification of intent to sell the units, with further adjustments for improvements and deterioration per the Guidelines. The adjustments shall be based on one-third of the increase in the Consumer Price Index (“CPI”), All Urban Consumers, San Francisco-Oakland-San Jose, published by the U.S.

Department of Labor, Bureau of Labor Statistics, plus certain other equitable Resolution No. XXXX

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9 adjustments.

5.5 Legal Characteristics of BMR Units: Right of First Refusal and Deed Restrictions. All BMR units shall be subject to deed restrictions and conditions which include a right of first refusal in favor of the City for a period of 55 years under which the City or its designee will be entitled to purchase the property at the lower of (1) market value, or (2) the purchase price paid by seller, plus one-third of the increase (during the period of seller's ownership) in the CPI, All Urban Consumers, San Francisco-OaklandSan Jose, published by the U.S. Department of Labor, Bureau of Labor Statistics, plus certain other equitable adjustments. The deed restrictions will also prohibit sales or transfers of the property except with the written consent of the City and at a price computed as above. Exceptions from all prohibitions against sale or transfer will include:
(1) Demonstrated unlikelihood of obtaining a qualified buyer within a reasonable period;
(2) Transfer by termination of joint tenancy or by gift or inheritance to parents, spouse, children, grandchildren or their issue.

The prohibition against sales or transfers will not terminate at the end of 55 years in the event of an exempt transfer by termination of joint tenancy or by gift or inheritance to family members. The prohibition against sales or transfers will terminate in the event of an exempt sale or transfer when there is a demonstrated unlikelihood of obtaining a qualified buyer within a reasonable period of time.

In the event of an exempt sale when there is a demonstrated unlikelihood of obtaining a qualified buyer within a reasonable period of time, the seller will be entitled to receive the lesser of (A) market value or (B) the purchase price paid by the seller plus one-third of the increase (during the seller's ownership) in the CPI, plus certain other equitable adjustments, as specified in the deed restrictions. The balance of the proceeds shall be paid to the City of Menlo Park to be deposited in the BMR Housing Fund. Any transferee pursuant to an exempt transfer by termination of joint tenancy or by gift or inheritance to family members must reside in the BMR unit and must qualify under the income criteria of the BMR Program at the time of the transfer of the BMR unit.

6. HOUSEHOLD DEFINITION AND CRITERIA
For purposes of sections 7 and 8 of these Guidelines, the following definition of household and provisions establishing household composition shall apply.

6.1 Definition of Household. For the purposes of this program, “household” is defined as all persons who occupy a housing unit. A household includes the related family members and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit, or a group of unrelated people sharing a housing unit such as partners or roomers, is also counted as a household. To be considered a household, all applicants/household members must live together in a home that is their primary residence. To be considered Resolution No. XXXX

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10 part of the household and included in household size, children under the age of 18 (including foster children) must reside in the home at least part-time or parents must have at least partial (50%) custody of the child/children.

6.2 Household Requirement. To constitute a household, all members of the applicant household must currently live together (in a location that is their primary residence) at the time of application. Also, at the time of application and regardless of where they currently live, all members who make up the applicant household must have continuously lived together for a minimum of one year prior to the date of application.

6.2.1 Exceptions. Exceptions to this minimum one year joint-residency requirement include:
• Children under the age of 18 who have recently joined the household in conjunction with marriage, separation, or divorce, or similar family reorganization, and for whom there is evidence of a custody agreement or arrangement. This also applies to foster children.
• Children born or adopted into a household.
• Households newly formed as a result of marriage or domestic partnership. • Other circumstances regarding the addition of a family member over the age of 18 may be reviewed by the City or its designee.

7. ELIGIBILITY REQUIREMENTS FOR HOUSEHOLDS APPLYING TO

PURCHASE BMR UNITS
Note: Preference criteria for households entering a BMR unit lottery drawing are identified in Section 8. The City no longer maintains a ranked purchase waitlist. Previously ranked households have been transferred to a legacy purchase list, as more fully set forth in Section 8.2. The provisions identified below apply at the time of submission of an application to purchase a BMR unit. In order for a household to be eligible at the time of submission of application, all of the following provisions shall apply and/or be met:

7.1 First Time Homebuyer. All members of the applicant household must be first time homebuyers, defined as not having owned a home as a primary residence within the last three years prior to the date of application. A primary residence is a property occupied by the applicant household for the majority of a calendar year. A household may have only one primary residence. First time homebuyers include owners of mobile homes, as well as applicants whose names are on title for properties they have not lived in as their primary residences for the last three years (for instance rental properties, which must be considered as part of the applicant’s eligibleassets).

7.1.1Exceptions. Exceptions to this requirement are:

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11 • Applicants who are current BMR homeowners and are otherwise eligible for the BMR Housing Program, are eligible to apply for BMR ownership opportunities and to purchase a smaller or larger home needed due to changes in household size or family needs, such as for accessibility needs (per Section 7.2.6, below).
• Applicants whose names were placed on the BMR Purchase Waiting List prior to March 2, 2010.
• Applicant households that currently and/or within the last three years prior to the date of application own homes as their primary residences more than 50 miles outside Menlo Park city limits, that are otherwise eligible for the BMR Housing Program.

7.2 Complete First Time Pre-Purchase Homebuyer Education. All adult applicants/household members must complete a one-time homebuyer education workshop, class, or counseling session. Program staff provides households with a list of approved local organizations that provide pre-purchase homebuyer education.

Applicants choose an education provider or program from the approved list and may choose to attend in either a group or individualized setting. It is the applicants’ responsibility to provide the City or the City’s BMR Housing Program provider with evidence that a pre-purchase homebuyer education workshop or session was completed. In most cases, the education providers will provide applicants with certificates of completion, typically good for two year, that applicants can submit to the City’s BMR Housing Program provider as proof that the pre-purchase education requirement was completed. Only households that have completed the education requirement will be invited to apply when units become available. Adult parents of applicants living in the household need not complete the education requirement.

7.2.1 Prior Completion of Pre-Purchase Homebuyer Education.

Applicants who provide written evidence of having completed an approved homebuyer education workshop, class, or counseling session within the previous twelve months prior to the date of submission of the BMR unit purchase application are not required to complete an additional workshop, class, or counseling session.

7.2.2 Homebuyer Education Provider. At the City’s discretion, the City may elect to work exclusively with one or more homebuyer education providers/organizations. The City may also choose to contract with a particular person or organization to provide this educational component.

7.2.3 Long-Term Education or Counseling Required for Certain Applicants. Applicants who are invited to apply to purchase BMR units and are twice denied (on separate occasions) due to long-term or significant credit problems, will be required to meet individually with a credit counseling professional. The applicant must provide evidence of completion of credit counseling before they can be approved to purchase a BMR ownership unit. The credit counseling requirement does not exclude the applicant from applying to future BMR purchase opportunities.

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12 7.3 Ownership Interest. A minimum of 50% of the ownership interest in the property must be vested in the qualifying applicant(s), regardless of income.

7.4 Income and Asset Limits for Purchasers of BMR Units. Income eligibility limits are established by HCD for San Mateo County. Income limits are updated on an annual basis. BMR units shall only be sold to very low, low, and moderate income households. Only households having gross incomes at or below 120% of the AMI for San Mateo County, adjusted for household size, are eligible to purchase and occupy BMR for-sale units, either upon initial sale or upon any subsequent resale, as specified in the deed restrictions. Refer to Section 15, Table A, for the income eligibility limits, which may be updated by City staff from time to time.

An asset is a cash or non-cash item that can be converted into cash. Only households having non-retirement assets that do not exceed the purchase price of the BMR units are considered eligible.
• Assets Include: cash held in checking accounts, savings accounts, and safe deposit boxes; equity in real property; cash value of stocks (including options), bonds, Treasury bills, certificates of deposit, money market accounts, and revocable trusts; personal property held as an investment such as gems, jewelry, coin and art collections, antiques, and vintage and/or luxury cars; lump sum or one-time receipts such as inheritances, capital gains, lottery winnings, victim’s restitution, and insurance settlements; payment of funds from mortgages or deeds of trust held by the applicant(s); boats and planes; and motor homes intended for primary residential use.
• Assets DO NOT Include: cars and furniture (except cars and furniture held as investments such as vintage and/or luxury cars, and antiques); company pension and retirement plans; Keogh accounts; dedicated education funds/savings accounts; and funds dedicated to federally recognized retirement programs such as 401K’s and IRA’s.

Note that equity in real property or capital investments is defined as follows: the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and all reasonable costs (e.g. broker/realtor fees) that would be incurred in selling the asset.

7.4.1 Senior or Disabled Households That Use Assets for Living Expenses. An exception to the income and asset limit requirement is a household whose head is over 62 years of age, or permanently disabled and unable to work, with assets valued up to two times the price of the BMR unit. The applicant must be able to demonstrate that the sole use of his/her assets has been for household support for at least the three previous years, and that the total annual household income meets the BMR Guidelines.

8. BMR PURCHASE AND RENTAL INTEREST LIST PREFERENCE CRITERIA Resolution No. XXXX

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13 8.1 BMR Purchase and Rental Interest List Preference Criteria. A BMR purchase and rental interest list, (herein referred to as the “interest list”), is maintained by the City or the City's designee.

An applicant must meet the current income eligibility limit requirements (per household size) to purchase and/or rent a BMR unit. See Section 15, Table A, for income eligibility limits, which may be updated by City staff from time to time.

Income qualified households shall apply for available BMR units via a lottery drawing held by the City or the City’s designee. The lottery drawing will rank applicants at random followed by a final ranking to account for households meeting the City’s preference criteria. All income eligible persons and households that do not qualify under one of the preferences will receive a final lottery rank lower than persons or households meeting preference criteria.

Preference criteria will be utilized at the time of a BMR unit drawing submission and verified during the application process. If an applicant does not meet a preference or cannot provide sufficient evidence establishing they meet a preference, that applicant will lose their preference ranking. In no circumstances shall the preference criteria and/or eligibility requirements of these Guidelines be applied in a manner that is contrary to State and/or Federal fair housing laws.

In addition to the below criteria, a tenant of a Menlo Park BMR rental unit who is required to vacate the BMR rental unit due to its conversion to a BMR for-sale unit, shall have first priority for vacant BMR rental units for which the tenant is eligible and qualifies for two years from the expiration of the lease, regardless of the place of residence of the displaced tenant.

Preference criteria are set forth below. All preferences, aside from the accessible unit preference, shall be given the same weight and/or ranking significance in formation of the final lottery ranking list.

Live and/or Work Preference: The applicant household’s primary residence is within incorporated Menlo Park or a member of the applicant household currently works or volunteers within incorporated Menlo Park.
• Criteria for residing within incorporated Menlo Park. To qualify as living in Menlo Park, the applicant household’s primary residence must be within incorporated Menlo Park.
• Criteria for working within incorporated Menlo Park. To qualify as a household that works in Menlo Park, a member of the applicant’s household must currently work in Menlo Park at least 20 hours per week, or (if currently less than 20 hours per week) hours worked over the course of the one year prior to application averages a minimum of 20 hours per week.

Resolution No. XXXX

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14 o Types of work. Work is defined as (1) owning and operating a business at a Menlo Park location; (2) employment for wages or salary by an employer located at a Menlo Park location; (3) contract employment where the actual work is conducted at a Menlo Park location for one year; (4) commission work, up to and including a 100% commission arrangement, conducted in Menlo Park, or (5) volunteering for a community or civic serving entity located within Menlo Park, without receipt of compensation, wages or salary in exchange for such time and work.
o Employer-based work. If employed for wages or salary by an employer, working in Menlo Park is defined as the employer is located in Menlo Park and the employment/actual work is performed within incorporated Menlo Park.
o Owning (either wholly or in part) a residential or commercial property for investment purposes only shall not qualify as working within incorporated Menlo Park.

Unhoused Preference: For purposes of these Guidelines, unhoused persons may show local residency by providing evidence that their last permanent residence was located in Menlo Park and/or documentation from a case manager or homeless services provider demonstrating current residency in Menlo Park, including places or structures other than a bona fide dwelling unit (i.e. vehicle or tent).

Displacement Preference: A person or household residing within incorporated Menlo Park for three or more years that was subsequently displaced from such housing and does not reside in Menlo Park at the date of submission of application, shall not be disqualified based on current lack of residency, provided they can show their displacement was due to economic conditions beyond their control (including but not limited to job loss, rent increase, eviction, foreclosure or other form of economic hardship resulting in loss of housing). Evidence of such economic displacement shall be in the form of direct evidence (i.e. job termination letter) or declarations submitted under penalty of perjury.

Accessible Unit Preference: If the BMR unit is an accessible unit, then persons and/or persons within a household with accessibility needs who are otherwise eligible for the BMR unit, including by household size and income, will receive preference for units with features serving those accessibility needs ahead of applicants without an accessibility need. Ranking of persons and households for accessible units shall follow the below list from highest to lowest in the order of lottery ranking:
• Person or household with an accessibility need meeting an existing Menlo Park preference, such as live and/or work, unhoused or displacement preference.

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15 • Person or household with an accessibility need not meeting an existing Menlo Park preference
• Person or household meeting an existing Menlo Park preference • Person or household not meeting an existing Menlo Park preference

8.2 BMR Purchase Legacy List. The City no longer maintains a ranked BMR purchase waitlist and no longer adds persons or households to this list. To honor households that maintained their ranking and were required to annually recertify, the City created a BMR Purchase Legacy List. Households on the previous ranked BMR purchase list as of January 1, 2021 were effectively notified and transferred to the BMR Purchase Legacy List, which allows these identified households to have priority over all other applicants. Once there are no longer any households remaining on the BMR Purchase Legacy List (either because households on the list have been placed in units pursuant to these Guidelines, or because households have withdrawn from the list), the list will be considered terminated.

9. THE BMR UNIT PURCHASE PROCESS: BUYER SELECTION AND SALE

PROCEDURES

9.1 New Units and Condominium Conversions.

9.1.1 The participating developer informs the City or its designee in writing that the BMR unit has received its final building inspection and that the BMR unit is ready for sale and occupancy. "The City" shall mean the City Manager, or his or her designee.

9.1.2 City of Menlo Park staff or the City’s BMR Housing Program provider inspects the BMR unit. After approval of the unit, the City or the City’s BMR Housing Program provider writes a certifying letter that states the BMR unit meets the BMR Housing Program's requirements and satisfies the BMR Agreement's provisions.

The certifying letter will also state the price for the BMR unit. The price for the BMR unit will be determined based on the information described in the next three sections.

9.1.3 The City or its designee obtains necessary information for determining the price of the BMR unit. These include, but may not be limited to, the estimated tax figures from the developer and the County Assessor, as well as Homeowner's Association dues, Covenants, Conditions and Restrictions, and insurance figures from the developer. Also included will be all associated Homeowner Association documentation.

9.1.4 Household size and income qualifications are established. In households in which an adult holds 50% or more custody of a minor child or children through a legally binding joint custody settlement, each such child shall count as a person in determining the household size.

Resolution No. XXXX

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16 9.1.5 The City or its designee determines the maximum price of the BMR unit based on an income up to 120% of AMI (“AMI”) related to household size, as established from time to time by HCD for San Mateo County, monthly housing costs including current mortgage rates, insurance costs, homeowners' dues, taxes, closing costs and any other consideration of costs of qualifying for a first mortgage and purchase of the BMR unit. See Section 15, Table A, for income eligibility limits, which may be updated by City staff from time to time. When these documents and the information described in this and preceding sections have been received, the City will provide the developer with a certifying letter in which the City states the price for the BMR unit, accepts the BMR unit as available for purchase and the purchase period will commence.

9.1.6 If there is a standard pre-sale requirement by the BMR applicant's lender for a certain percentage of units in the project to be sold before the BMR applicant's lender will close, then the time for the City's purchase or the buyer's purchase will be extended until that requisite number of units has closed.

9.1.7 The City may retain a realtor to facilitate the sale of the property.

9.1.8 Contact is established between the City or its designee and the developer's representative to work out a schedule and convenient strategy for advertisements, if needed, when the units will be open for viewing, and for when the interested applicants may obtain detailed information about the units.

9.1.9 All marketing and sales procedures for BMR units must be approved by the City and will be subject to review on a periodic basis for compliance.

9.1.10 An information packet and application forms are designed and duplicated by the City or its designee. The developer provides information about the unit, including a floor plan of the unit and of the building showing the location of the unit, dimensions, appliances, amenities, and finishes.

9.1.11 The City or the City’s BMR Housing Program provider holds an application orientation meeting(s). All person and households are invited to attend the orientation meeting(s). Only households that are eligible by household size and have completed the one-time pre-purchase education requirement are contacted and invited to attend the orientation. Applications to purchase BMR units can only be obtained by attending an application orientation meeting. At the meeting, potential applicants are provided with the following information:
• A detailed description of the BMR Housing Program, including the rights, restrictions, and responsibilities of owning a BMR unit. • A complete description of the property or properties being offered for sale including buyer eligibility requirements, the purchase price, home owner association costs (if any), estimated property taxes, and home features.

Resolution No. XXXX

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17 • An overview of the home loan application process and description of necessary costs including down payment (if required), closing costs, real estate taxes, and mortgage insurance.
• A description of the BMR and home loan approval process. Potential applicants are informed they must work with one of the program’s approved mortgage providers. Per the City’s discretion the potential applicants are also informed of the kinds of acceptable mortgage financing, and also of mortgage financing not allowed at that time (for instance negative amortizing loans).
• Based on the purchase price, estimates are provided on the minimum annual income required to purchase, as well as possible monthly housing costs including principal and interest, property taxes, and insurance payments.
• A step-by-step explanation of the BMR purchase application. If there are several sizes of units for which applicants may be eligible, applicants are instructed where to indicate their unit size preferences.

Potential applicants are invited to ask questions. Meeting attendees are invited to sign up to tour the property or properties for sale. Attendees are given applications and a reasonable deadline to submit their completed applications.

9.1.12 Completed applications are submitted to the City or its designee along with income and asset verifications.

9.1.13 When the application period closes, the City or its designee reviews the completed applications. The complete, eligible, qualifying applications are ranked according to legacy list order and/or lottery ranking.

9.1.14 If the leading applicant for a unit fails to contact the developer, provide a deposit, or obtain appropriate financing within the period of time specified in the notification letter, the City or its designee will contact the next household on the list.

9.1.15 The City of Menlo Park or its designee submits to the title insurance company the Grant Deed, BMR Agreement and Deed Restrictions, and Request for Notice to be recorded with the deed to the property.

9.1.16 The developer shall be free to sell a BMR unit without restriction as to price or qualification of buyer if all of the following criteria are met, unless the BMR applicant's lender has a loan condition that a specific number of units in the development must be sold before the loan can be approved: (1) the City and the developer are unable to obtain a qualified buyer within six months after the City has provided written notice both certifying that the unit is available for purchase and setting the price for the BMR unit, (2) the City or its designee does not offer to purchase the BMR unit within said six months period, and complete said purchase within not more than 60 days following the Resolution No. XXXX

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18 end of the six month period, (3) the developer has exercised reasonable good faith efforts to obtain a qualified buyer. A qualified buyer is a buyer who meets the eligibility requirements of the BMR Housing Program and who demonstrates the ability to complete the purchase of the BMR unit. Written notice of availability shall be delivered to the City Manager, City of Menlo Park, 701 Laurel Street, Menlo Park, CA 94025.

Separate written notice of availability shall also be delivered to the City Manager, City of Menlo Park, 701 Laurel Street, Menlo Park, CA 94025.

10. OCCUPANCY REQUIREMENTS FOR OWNER-OCCUPIED BMR UNITS

10.1 Primary Residence. The owners listed on title to the BMR property must occupy it as their primary residence and remain in residence for the duration of the Deed Restrictions (55 years). Occupancy is defined as a minimum stay of 10 months in every 12 month period. BMR owners may not terminate occupancy of the BMR property and allow the property to be occupied by a relative, friend, or tenant. Failure of the purchaser to maintain a homeowner’s property tax exemption shall be construed as evidence that the BMR property is not the primary place of residence of the purchaser. As necessary, the City may request that BMR owners provide evidence that their units are currently occupied by them as their primary residences. Examples of such evidence may include current copies of any of the following: homeowner’s insurance, car/vehicle registration, and utility bills.

10.2 Refinancing and BMR Valuations. BMR owners may refinance the debt on their property at any time following purchase, however, they must contact the City’s designated BMR Housing Program provider first, prior to a refinance or equity line. The City’s BMR Housing Program provider will provide the owner with clear instructions to ensure program compliance. At that time and at any other time the owner requests it, the BMR Housing Program provider will provide the owner and/or the lender with the current BMR value of the home, in accordance with the formula specified in the Deed Restrictions. Only the City’s BMR Housing Program provider can determine the appraised value of a BMR unit and it is the owner’s responsibility to inform their lender that the property is a BMR unit. BMR owners are not allowed to take out loans against their property that exceed the BMR value of the home. There is a fee for refinancing a BMR unit that is set by the City’s BMR Housing Program provider.

10.3 Transfers of Title. Prior to adding an additional person to title or transferring title to the BMR unit, BMR owners must contact the City for clear instructions to ensure program compliance.

Resolution No. XXXX

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19 • Transfer of title to a spouse as part of divorce or dissolution proceedings. • Transfer of title or an interest in the property to the spouse in conjunction with marriage.

Transfers by devise or inheritance (such as to a child or other family member), are permitted under certain terms and conditions identified in the Deed Restrictions. These kinds of transfers must first be reviewed and approved by the City or the BMR Housing Program provider. If the person inheriting the property meets the following terms and conditions, then that person may take title, assume full ownership, and reside in the BMR unit. This would then restart the 55 year deed restriction clock. If the person inheriting the property does NOT meet the following terms and conditions they may still inherit the property but are not allowed to live there. In such case, the inheriting party must sell the property and shall be entitled to receive any proceeds from the sale after payment of sales expenses and all liens against the property. The property would then be sold by the City through the BMR Housing Program to an eligible, qualified household. For transfers of title by devise or inheritance, the inheriting party (“Transferee”) must meet the following terms and conditions in order to live in the BMR unit:
• Transferee shall occupy, establish and maintain the property as the Transferee’s primary residence.
• The Transferee must meet all current eligibility requirements for the BMR Housing Program, as identified at the time of transfer in the BMR Guidelines.
• The Transferee must sign a new BMR Agreement and Deed Restrictions for the property. This restarts the 55 year clock.

11. PROCESS FOR RESALE OF BMR UNITS

11.1 The seller notifies the City by certified mail that he/she wishes to sell the unit. The City notifies its designee, if applicable. The unit must be provided in good repair and salable condition, or the cost of rehabilitating the unit will be reimbursed to the City out of the proceeds of the sale. The definition of “salable condition” for any given unit shall be provided on a case-by-case basis following the City’s inspection of the unit, and shall be at the discretion of the City Manager or his/her designee. “Salable condition” shall refer to the general appearance, condition, and functionality of all: flooring; painted surfaces; plumbing, heating, and electrical systems; fixtures; appliances; doors; windows; walkways; patios; roofing; grading; and landscaping. In addition for each unit, the City reserves the right to withhold the cost of having it professionally cleaned from the seller’s proceeds. Once cleaning is complete, the seller will be refunded any difference between the amount withheld and the actual cost to clean the unit.

11.2 When the seller notifies the City or the City’s BMR Housing Program provider, and it has been determined that the unit is in good repair and salable condition, and the City has set the price for the BMR unit, then the City or the City’s BMR Housing Resolution No. XXXX

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20 Program provider will state in writing that the 180 day period for completing the sale of the BMR unit shall commence. The price will be set using information in Sections 11.3 through 11.6 below.

11.3 The City or its designee obtains an appraisal made to ascertain the market value of the unit, giving consideration to substantial improvements made by the seller, if needed.

11.4 The City or its designee obtains figures for homeowners' dues, insurance, and taxes from the seller.

11.5 The City or its designee checks major lending institutions active in this market to ascertain current mortgage information (prevailing interest rates, length of loans available, points, and minimum down payments). Monthly housing costs are estimated.

11.6 The City or its designee establishes a sales price, based on the original selling price of the unit, depreciated value of substantial improvements made by the seller, and 1/3 of the increase in the cost of living index for the Bay Area. The selling price is established for the unit at the appraised market value or the computed price whichever is the lower.

11.7 The City retains a realtor to facilitate the sale of the property.

11.8 Agreement is reached between seller and the City or its designee for a schedule of open houses for the unit, at the seller's convenience.

11.9 The procedure continues the same as in Sections 9.1.7 – 9.1.16 above, with the seller substituted for the developer.

11.10 The City or its designee submits to the title insurance company the Grant Deed, BMR Agreement and Deed Restrictions, and Request for Notice and the seller's release from the previous Deed Restrictions, to be recorded with the new deed to the property.

12. REQUIREMENTS FOR BMR RENTAL DEVELOPMENTS

12.1 Income and Rent Standards.

12.1.1 Income Limits upon Occupancy of BMR Rental Units. Unless otherwise approved by the Planning Commission or City Council in the BMR Housing Agreement for the proposed project, only households having gross incomes at or below Low Income for San Mateo County, adjusted for household size, are eligible to occupy BMR rental units, either when initially rented or upon filling any subsequent vacancy.

See Section 15, Table A (Below Market Rate Household Income Limits), which may be updated by City staff from time to time. Any variation in the affordability mix to assist the City in meeting its Regional Housing Needs Assessment (including very low, low or Resolution No. XXXX

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21 moderate income households) shall require a finding by the approving body that the mix is roughly equivalent to the provision of all of the affordable units at the low income level.

12.1.2 BMR Rent. BMR units may be rented for monthly amounts not exceeding thirty percent (30%) of the income limit for extremely low, very low, subsidized low, low or moderate income households adjusted for occupancy, as established from time to time by the HCD for San Mateo County. In no case shall the monthly rental amounts for BMR units exceed 75% of comparable market rate rents. The maximum rental amounts are listed in Section 15, Table B, (Maximum Monthly Housing Cost Limits for BMR Rental Units), which may be updated by City staff from time to time. BMR rents may be adjusted from time to time to reflect any changes to the then current Income limits.

12.1.3 Tenant Selection and Certification Procedures. Priority for occupancy of all BMR rental units shall be given to those income eligible households who meet the preference criteria defined in section 8.1of these Guidelines.

12.1.4 BMR Interest List. The qualifications of BMR rental tenants as described in Section 8.1, above, will be independently verified by the owner. The City of Menlo Park or the City’s designee shall maintain a BMR Interest List and shall make it available to any owner/developer upon request.

12.1.5 One-Year Lease Offer. Each BMR tenant shall be offered the opportunity to enter into a lease, which has a minimum term of one year. Such offer must be made in writing. If the tenant rejects the offer, such rejection must also be in writing.

A lease may be renewed upon the mutual agreement of both parties.

12.1.6 Vacation of Units and Re-Renting. When a BMR tenant vacates, the owner must provide notice to the City, and re-rent the unit to a qualified BMR tenant in accordance with these BMR Guidelines and the BMR Housing Agreement for the unit.

12.1.7 Annual Recertification of BMR Units. The City of Menlo Park or the City’s BMR Housing Program provider will recertify annually, by procedures to be established in the BMR Housing Agreement, the provision of BMR rental units as agreed at the time of application for the permit. A qualified BMR tenant shall continue to qualify unless at the time of recertification, for two consecutive years, the household’s income exceeds the eligibility requirements, then the tenant shall no longer be qualified. Upon the owner’s determination that any such household is no longer qualified, the unit shall no longer be deemed a BMR Unit, and the owner shall make the next available unit, which is comparable in terms of size, features and number of bedrooms, a BMR (the “Next Available Unit Requirement”), or take other actions as may be necessary to ensure that the total required number of units are rented to qualifying BMR households. The owner shall notify the City annually if it substitutes a different unit for one of the designated BMR Units pursuant to this paragraph.

12.1.8 Annual Report. On an annual basis on or before July 1 of each year, the developer or subsequent owner shall submit a report (the “Annual Report”) to Resolution No. XXXX

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22 the City which contains, with respect to each BMR unit, the name of the eligible tenant, the rental rate and the income and household size of the occupants. The Annual Report shall be based on information supplied by the tenant or occupant of each BMR unit in a certified statement executed yearly by the tenant on a form provided or previously approved by the City or designee. Execution and delivery thereof by the tenant may be required by the terms of the lease as a condition to continued occupancy at the BMR rate. In order to verify the information provided, City shall have the right to inspect the books and records of developer and its rental agent or bookkeeper upon reasonable notice during normal business hours. The Annual Report shall also provide a statement of the owner’s management policies, communications with the tenants and maintenance of the BMR unit, including a statement of planned repairs to be made and the dates for the repairs.

13. EQUIVALENT ALTERNATIVES
Nothing set forth herein shall preclude the City from approving reasonably equivalent alternatives to these BMR Guidelines, including, but not limited to, in lieu fees, land dedication, off-site construction or acquisition and rehabilitation of units.

14. BELOW MARKET RATE HOUSING FUND AND SEVERABILITY CLAUSE

14.1 Purpose. The City of Menlo Park Below Market Rate Housing Fund (“BMR Housing Fund”) is a separate City fund set aside for the specific purpose of assisting the development of housing that is affordable to very low, low and moderate income households. The BMR Housing Fund is generated by such income as in-lieu fees. All monies contributed to the BMR Housing Fund, as well as repayments and interest earnings accrued, shall be used solely for this purpose, subject to provisions set forth below.

14.2 Eligible Uses. The BMR Housing Fund will be used to reduce the cost of housing to levels that are affordable to very low, low and moderate income households, as defined in the Housing Element of the City's General Plan. A preference will be given to assisting development of housing for households with minor children; however, this preference does not preclude the use of funds for other types of housing affordable to households with very low, low and moderate incomes.

14.3 Eligible Uses in Support of Very Low, Low and Moderate Income Housing Development. The BMR Housing Fund may be used for, but is not limited, to the following:
• Provision of below market rate financing for homebuyers.

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23 • Purchase of land or air rights for resale to developers at a reduced cost to facilitate housing development for very low, low or moderate income households.
• Reduction of interest rates for construction loans or permanent financing, or assistance with other costs associated with development or purchase of very low, low or moderate income housing.
• Rehabilitation of uninhabitable structures for very low, low or moderate income housing.
• On-site and off-site improvement costs for production of affordable housing.
• Reduction of purchase price to provide units that are very low, low or moderate cost.
• Rent subsidies to reduce the cost of rent for households with limited incomes.
• Emergency repair and/or renovation loan program for BMR owners of older units.
• Loan program to assist BMR condominium owners who have no other way to pay for major special assessments.
• City staff time and administrative costs associated with implementation of the BMR Housing Program.

14.4 Procedures. Requests for use of BMR Housing Fund money shall be submitted to staff for review and recommendation to the City Council. A request for funding shall provide the following minimum information:
• A description of the proposal to be funded and the organizations involved in the project. Public benefit and relevant Housing Element policies and programs should be identified.
• Amount of funding requested.
• Identification of the number of very low, low and moderate income households to be assisted and the specific income range of those assisted. • Reasons why special funding is appropriate.
• Identification of loan rate, financial status of applicants, and source of repayment funds or other terms.

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24 • Identification of leverage achieved through City funding.

14.5 Annual Report. At the close of each fiscal year, City staff shall report on activity during the previous year (deposits and disbursements) and available funds. The City's auditor shall periodically examine this report and all other BMR Housing Fund financial records, and shall report the results of this examination. In addition, City staff shall report annually on activities assisted by monies from the BMR Housing Fund. The report will review how the program is serving its designated purpose. It will include a discussion of the timely use of funds for actions taken to provide BMR housing units, a review of management activities, and staff recommendations for policy changes to improve the program's performance. In addition, it will provide, for each activity, information corresponding to that required of funding requests listed above in Section

13.4. 14.6 Severability Clause. If any one or more of the provisions contained in the BMR Guidelines shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then such provisions shall be deemed severable from the remaining provisions contained in the BMR Guidelines, and the BMR Guidelines shall be construed as if such invalid, illegal or unenforceable provision(s) had never been contained herein.

14.7 Administrative Updates. Future updates to tables in Section 15 may be made annually without City Council approval when data becomes available from the appropriate state and federal agencies.

Resolution No. XXXX

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25 15. TABLES
Table A
Below Market Rate Household Income Limits
2021 Income Limits
Area Median Income: $149,600 (for a household of 4 persons) effective April 26, 2021 Household Size
Income Category 1 2 3 4 5 6 7
Extremely Low Income 38400 43850 49350 54800 59200 63600 68000 Very Low Income 63950 73100 82250 91350 98700 106000 113300 Low Income 102450 117100 131750 146350 158100 169800 181500 Median Income 104700 119700 134650 149600 161500 173550 185550 Moderate Income 125650 143600 161550 179500 193850 208200 222600 https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits/docs/income-limits2021.pdf Table B
Maximum Affordable Rent Payment
2021 Rent Limits
Area Median Income: $149,600 (for a household of 4 persons) effective April 26, 2021 Maximum Rents Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Very Low Income 1598 1713 2056 2375 2650
Low Income 2561 2738 3293 3805 4245
Moderate Income 3141 3365 4038 4666 5205
NOTE 1: The maximum rent is based on the following household size for each unit: Studio: 1 person; 1- bedroom: 1.5 persons; 2-bedroom: 3 persons; 3-bedroom: 4.5 persons; 4-bedroom: 6 persons.

NOTE 2: Per the City of Menlo Park BMR Guidelines (Section 4.1.2), the monthly rental amounts for BMR unit shall not exceed seventy-five percent (75%) of comparable market rate rents. Additional calculations may be necessary for each project to ensure BMR rents comply with this requirement. https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits/docs/incomelimits-2021.pdf Resolution No. XXXX

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26 Table C
Occupancy Standards
Occupancy of BMR units shall be limited to the following:

Unit Number of Persons
Size Minimum Maximum
Studio 1 2
1 1 3
2 2 5
3 3 7
4 4 9
Note: The City Manager or his/her designee has the discretion to vary the persons per unit for unusually large units, not to exceed one person per bedroom, plus one.

Table D
Commercial In-Lieu Fees for July 1, 2021 – June 30, 2022 Group A uses are Research &
Development and Office.

Fee: $20.46 per square foot of gross
floor area.

Group B uses are all other
Commercial Uses not in Group A.

Fee: $11.10 per square foot of
gross floor area.

Commercial In-Lieu Fees are adjusted annually on July 1. Annual fee adjustments are posted on the City’s website.

Resolution No. XXXX

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CITY OF MENLO PARK

BELOW MARKET RATE HOUSING PROGRAM

GUIDELINES
Income Limits/Section 1514, Tables A and B Updated for 2017-182021-22 Originally Adopted by City Council on January 12, 1988
Revised by City Council on the following dates:
• December 17, 2002 (No Resolution)
• March 25, 2003 (Resolution No. 5433)
• January 13, 2004 (No Resolution)
• March 22, 2005 (Resolution No. 5586)
• March 2, 2010 (Resolution No. 5915)
• May 10, 2011 (No Resolution)
• May 6, 2014 (Resolution No. 6196)
• April 17, 2018 (Resolution No. 6432)
• June 19, 2018 (Resolution No. 6446)
• March 1, 2022 (Resolution No. 0000)
ATTACHMENT C Page F-5.35

BELOW MARKET RATE HOUSING PROGRAM GUIDELINES
Table of Contents

1. Overview ..................................................................................................... 1

2. BMR Housing Agreement and Review Process .......................................... 1

3. Requirements for Developments by Type ................................................... 2

4. BMR Program Requirements for On-Site BMR Units,
Off-Site BMR Units and In Lieu Fees ........................................................... 4

5. Characteristics of BMR Units ....................................................................... 7

6. 7.

8. Household Definition and Criteria……………………………………………….

Eligibility Requirements for Households Applying to Purchase BMR Units… BMR Purchase Waiting List and BMR Rental Interest List Preference Criteria ….……………
9 10
13 9. The BMR Unit Purchase Process: Buyer Selection and Sale Procedures ... 15

10. 11.

12. Occupancy Requirements for Owner-Occupied BMR Units………………….

Process for Resale of BMR Units………………………………………………..

14. Below Market Rate Housing Fund and Severability Clause ........................ 22

15. Tables .......................................................................................................... 25 Page F-5.36
1 1. OVERVIEW
The high cost and scarcity of housing in Menlo Park have been caused in large part because the number of jobs in Menlo Park has grown, but the supply of housing has not increased significantly. A majority of new employees earn low- and moderateincomes and are most severely impacted by the lack of affordable housing in Menlo Park. Because of the high cost of housing, families who seek to live in Menlo Park cannot afford to purchase homes here and are forced to rent. Many renters pay a disproportionately high amount of their incomes in rent.

The primary objective is to obtain actual housing units, either "rental" or "for sale," rather than equivalent cash.

2. BMR HOUSING AGREEMENT AND REVIEW PROCESS

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2 3. REQUIREMENTS FOR DEVELOPMENTS BY TYPE

Commercial in-lieu fee rates are adjusted annually on July 1st. The amount of the adjustment is based on a five-year moving average of the percentage increase in the Consumer Price Index (Shelter Only) for All Urban Consumers in the San FranciscoOakland-San Jose area. Refer to Section 1415, Table D, for the Commercial In-lieu Fee Rates, which may be updated by City staff from time to time.

3.1.3 Exemptions. The following are exempted from the BMR Housing Program:
(a) Private schools and churches;
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3 (b) Public facilities;
(c) Commercial development projects of less than 10,000 square feet; and (d) Projects that generate few or no employees.

3.4 Required Contribution for Residential Development Projects. All Page F-5.39
4 residential developments of five units or more are required to participate in the BMR Housing Program. The preferred BMR Housing Program contribution for all residential developments is on-site BMR units. For rental residential development projects, the applicant may comply with the City’s BMR requirements by providing in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units. Any alternative means of compliance shall be approved by the City Council upon findings that the alternative is commensurate with the applicable on-site requirement and complies with applicable BMR Guidelines.

One (1) to Four (4) Units. Developers are exempt from the requirements of the BMR Housing Program.

Five (5) to Nine (9) Units. It is preferred that the developer provide one unit at below market rate to a very low, low, or moderate income household.

Ten (10) to Nineteen (19) Units. The developer shall provide not less than 10% of the units at below market rates to very low-, low- and moderate-income households.

4. BMR PROGRAM REQUIREMENTS FOR ON-SITE BMR UNITS, OFF-SITE

BMR UNITS AND IN-LIEU FEES
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5 4.1 On-Site BMR Units.

4.1.1 Initial Price for For-Sale Unit. The initial selling price of BMR forsale units for extremely low (30% AMI), very low (50% AMI), subsidized low (60% AMI), low (80% AMI) or moderate (120% AMI) income households is based on what is affordable to households with incomes at the identified percentage of area median income (“AMI”) related to household size, as established from time to time by the State of California Housing and Community Development Department (“HCD”) for San Mateo County. See Section 1415, Table A, which may be updated by City staff from time to time.

4.1.2 Initial Price for Rental Unit. The initial monthly rental amounts for BMR rental units will be equal to or less than thirty percent (30%) of the applicable income limits for extremely low, very low, subsidized low, low and moderate income households adjusted for occupancy, as established from time to time by the HCD for San Mateo County. In no case shall the monthly rental amounts for BMR units exceed seventy-five percent (75%) of comparable market rate rents. The maximum rent for specific BMR units will be based on Section 1415, Table B of the BMR Guidelines, which may be updated by City staff from time to time. See also Sections 11.1.1 and 11.1.2.

The initial price or rent for the BMR units shall be established as stated in Sections 4.1.1 and 4.1.2 and in accordance with the BMR Income Guidelines in Section 1415 in effect at the time the BMR unit is ready for sale or rent. Fractions of required BMR units shall Page F-5.41
6 be handled by provision of an in-lieu fee for the market rate units for which no BMR unit is provided.

4.3 Ownership Residential In Lieu Payments Based on Sales Price.

4.3.2 Developments of Five (5) to Nine (9) Units.

Units paying in-lieu fees are designated so that they are distributed by unit size and location throughout the project.

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7 In developments of 10 or more units which provide BMR units, upon the close of escrow on the sale of each unit in the subdivision for which a BMR unit has not been provided, the developer shall pay to the City an in-lieu payment calculated at three percent (3%) of the actual sales price of each unit sold.

5. CHARACTERISTICS OF BMR UNITS

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8 5.3.1 Final Inspection Schedule for Smaller and Larger Developments.

Less Than Ten (10) Units. In developments of less than 10 units with one or more BMR units, all BMR units must pass final inspection before the last market rate unit passes final inspection.

Last Unit. In no case may the last market rate unit pass final inspection before the last BMR unit has passed final inspection.

5.4 Sales Price Determination for BMR For-Sale Units. The maximum sales price for BMR units shall be calculated as affordable to BMR households on the BMR Purchase Waiting List, which are eligible by income at the time that the maximum prices are set and which are of the smallest size eligible for the BMR units (excluding two-bedroom units, which shall be based on incomes for two person households even when units are made available to one person households). See Section 1415, Table A, for income eligibility limits, and Table C, for occupancy standards, which tables may be updated by City staff from time to time. The affordability of maximum prices will take into consideration mortgage interest rates, minimum down payments, mortgage debt-toincome ratios and other qualifying criteria used by lenders at the time the sales prices are set, as well as cost of insurance, taxes, homeowners’ dues and any other necessary costs of homeownership.

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9 Department of Labor, Bureau of Labor Statistics, plus certain other equitable adjustments.

6. HOUSEHOLD DEFINITION AND CRITERIA
For purposes of sections 7 and 8 of these Guidelines, the following definition of household and provisions establishing household composition shall apply.

6.1 Definition of Household. For the purposes of this program, “household” is defined as all persons who occupy a housing unit. A household includes the related family members and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit, or a group of unrelated people sharing a housing unit such as partners or roomers, is Page F-5.45
10 also counted as a household. To be considered a household, all applicants/household members must live together in a home that is their primary residence. To be considered part of the household and included in household size, children under the age of 18 (including foster children) must reside in the home at least part-time or parents must have at least partial (50%) custody of the child/children.

7. ELIGIBILITY REQUIREMENTS FOR HOUSEHOLDS APPLYING TO

PURCHASE BMR UNITS
Note: Eligibility requirements Preference criteria for households entering a BMR unit lottery drawing that wish to be placed on the BMR Purchase Waiting List are identified in Section 87. The City no longer maintains a ranked purchase waitlist. Previously ranked households have been transferred to a legacy purchase list, as more fully set forth in see Section 78.2. The requirements provisions identified below apply at the actual time of submission of an application to purchase a BMR unit. In order for a household to be eligible at the time of submission of application to purchase, ALL , all of the following requirements provisions shall apply and/or bemust be met:

6.1 BMR Purchase Waiting List. Applicants are eligible to have their names placed on the BMR Purchase Waiting List if they meet the following three requirements at the time they submit an application for the BMR Purchase Waiting List: (1) currently live or work within incorporated Menlo Park; (2) meet the current income limit requirements (per household size) for purchase of a BMR unit; and (3) all applicants currently live together as a household.

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11 6.1.1 Definition of Household. For the purposes of this program, household is defined as all persons who occupy a housing unit. A household includes the related family members and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit, or a group of unrelated people sharing a housing unit such as partners or roomers, is also counted as a household. To be considered a household, all applicants/household members must live together in a home that is their primary residence. To be considered part of the household and included in household size, children under the age of 18 (including foster children) must reside in the home at least part-time or parents must have at least partial (50%) custody of the child/children.

6.2 Live and/or Work Eligibility. Households that live and/or work within incorporated Menlo Park shall be eligible for the Below Market Rate Housing Program in accordance with the following provisions:

6.2.1 Eligibility by Living in Menlo Park. To qualify as living in Menlo Park, the applicant household must meet the following two requirements at the time of application: (1) currently live in Menlo Park as the household’s primary residence and (2) must have continuously lived in Menlo Park for a minimum of one (1) year prior to the date of actual application to purchase.

6.2.2 Eligibility by Working in Menlo Park. To qualify as a household that works in Menlo Park, a member of the applicant’s household must meet the following two requirements at the time of application: (1) currently work in Menlo Park at least 20 hours per week, or (if currently less than 20 hours per week) hours worked over the course of the one year prior to application averages a minimum of 20 hours per week and (2) must have continuously worked in Menlo Park for a minimum of one year prior to the date of actual application to purchase.

6.2.2.1 Types of Work. Work is defined as (1) owning and operating a business at a Menlo Park location; (2) employment for wages or salary by an employer located at a Menlo Park location; (3) contract employment where the actual work is conducted at a Menlo Park location for one year; or (4) commission work, up to and including a 100% commission arrangement, conducted in Menlo Park.

6.2.2.2 Employer-Based Work. If employed for wages or salary by an employer, working in Menlo Park is defined as the employer is located in Menlo Park AND the employment/actual work is performed within incorporated Menlo Park.

6.2.2.3 Owning and Operating a Business at a Menlo Park Location. This does NOT include owning (either wholly or in part) a residential or commercial property for investment purposes only.

6.2.2.4 Work does NOT include volunteer or unpaid work.

6.23 Household Requirement. To constitute a household, all members of the applicant household must currently live together (in a location that is their primary Page F-5.47
12 residence) at the time of application. Also, at the time of application and regardless of where they currently live, all members who make up the applicant household must have continuously lived together for a minimum of one year prior to the date of application.

6.23.1 Exceptions. Exceptions to this minimum one year joint-residency requirement include:
• Children under the age of 18 who have recently joined the household in conjunction with marriage, separation, or divorce, or similar family reorganization, and for whom there is evidence of a custody agreement or arrangement. This also applies to foster children.
• Children born or adopted into a household.
• Households newly formed as a result of marriage or domestic partnership. • Other circumstances approved by the City to account for a recently added household member (such as an aging parent).

7.1 6.4 First Time Homebuyer. All members of the applicant household must be first time homebuyers, defined as not having owned a home as your a primary residence within the last three years prior to the date of application. A primary residence is a property occupied by the applicant household for the majority of a calendar year. A household may have only one primary residence. First time homebuyers DO include owners of mobile homes, as well as applicants whose names are on title for properties they have not lived in as their primary residences for the last three years (for instance rental properties, which must be considered as part of the applicant’s eligibleility per assets).

7.1.16. 4. 1. Exceptions. Exceptions to this requirement are:
• Applicants who are current BMR homeowners and are otherwise eligible for the BMR Housing Program, are eligible to apply for BMR ownership opportunities place their names on the BMR Purchase Waiting List and to purchase a smaller or larger home needed due to changes in household size or family needs, such as for handicap accessibility needs (per Section

7.2.6, below).
• Applicants whose names were placed on the BMR Purchase Waiting List prior to March 2, 2010.
• Applicant households that currently and/or within the last three years prior to the date of application own homes as their primary residences more than 50 miles outside Menlo Park city limits, that are otherwise eligible for the BMR Housing Program.

7.26.5 Complete One-TimeFirst Time Pre-Purchase Homebuyer Education.

After an applicant’s name is placed on the BMR Purchase Waiting List and before Page F-5.48
13 receiving an offer to purchase a BMR property, aAll adult applicants/household members must complete a one-time homebuyer education workshop, class, or counseling session. When applicants’ names are placed on the BMR Purchase Waiting List, Pprogram staff provides them households with a list of approved local organizations that provide pre-purchase homebuyer education. Applicants choose an education provider or program from the approved list and may choose to attend in either a group or individualized setting. It is the applicants’ responsibility to provide the City or the City’s BMR Housing Program provider with evidence that a pre-purchase homebuyer education workshop or session was completed. In most cases, the education providers will provide applicants with certificates of completion, typically good for two year, which that applicants can submit to the City’s BMR Housing Program provider as proof that the pre-purchase education requirement was completed. Households on the BMR Purchase Waiting List that have not completed the homebuyer education requirement will retain their rank on the list but will NOT be invited to apply to purchase BMR units.

Only households on the BMR Purchase Waiting List that have completed the education requirement will be invited to apply when units become available. Elderly Adult parents of applicants living in the household need not complete the education requirement.

7.2.16.5.1 Prior Completion of Pre-Purchase Homebuyer
Education. At the time of application to the BMR Purchase Waiting List, aApplicants who provide written evidence of having completed an approved homebuyer education workshop, class, or counseling session within the previous twelve months prior to the date of submission of the BMR unit purchase application to the BMR Purchase Waiting List are not required to complete an additional workshop, class, or counseling session.

7.2.26.5.2 Homebuyer Education Provider. At the City’s discretion, the City may elect to work exclusively with one or more homebuyer education providers/organizations. The City may also choose to contract with a particular person or organization to provide this educational component.

7.2.36.5.3 Long-Term Education or Counseling Required for Certain Applicants. Applicants who are invited to apply to purchase BMR units and are twice denied (on separate occasions) due to long-term or significant credit problems, will be required to meet individually with a credit counseling professional in order to remain on the BMR Purchase Waiting List. The applicant must provide evidence of completion of credit counseling before they can be approved to purchase a BMR ownership unit. within six months to the City’s BMR provider or the applicant will be removed from the BMR Purchase Waiting List. This The credit counseling requirement does not exclude the applicant from applying to future the BMR purchase opportunities.Purchase Waiting List again, to be placed at the bottom of the list.

7.36.6 Ownership Interest. A minimum of 50% of the ownership interest in the property must be vested in the qualifying applicant(s), regardless of income.

7.46.7 Income and Asset Limits for Purchasers of BMR Units. Income eligibility limits are established by HCD for San Mateo County. Income limits are updated on an annual basis. BMR units shall only be sold to very low, low, and moderate income households. Only households having gross incomes at or below 120% of the AMI for Page F-5.49
14 San Mateo County, adjusted for household size, are eligible to purchase and occupy BMR for-sale units, either upon initial sale or upon any subsequent resale, as specified in the deed restrictions. Refer to Section 1415, Table A, for the income eligibility limits, which may be updated by City staff from time to time.

7.4.1 6.7.1 Senior or Disabled Households That Use Assets for Living Expenses. An exception to the income and asset limit requirement is a household whose head is over 62 years of age, or permanently disabled and unable to work, with assets valued up to two times the price of the BMR unit. The applicant must be able to demonstrate that the sole use of his/her assets has been for household support for at least the three previous years, and that the total annual household income meets the BMR Guidelines.

87. BMR PURCHASE WAITING LIST AND BMR RENTAL INTEREST LIST

PREFERENCE CRITERIA

8.17.1 BMR Purchase Waiting List and BMR Rental Interest List Preference Criteria Eligibility Requirements. A BMR purchase and rental interest list, (here in referred to as the “interest list”), is maintained by the City or the City's designee.

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15 An applicant must meet the current income eligibility limit requirements (per household size) to purchase and/or rent a BMR unit. See Section 15, Table A, for income eligibility limits, which may be updated by City staff from time to time.

Preference criteria will be utilized at the time of a BMR unit drawing submission and verified during the application process. If an applicant does not meet a preference or lackscannot provide sufficient evidence that theyestablishing they meet a preference, that applicant will lose their preference ranking. In addition, the City maintains an unranked BMR Rental interest list. Households are eligible to be placed on the BMR Purchase Waiting List or BMR Rental Interest List if they meet the following requirements at the time they submit applications for the either list: In no circumstances shall the preference criteria and/or eligibility requirements of these Guidelines be applied in a manner that is contrary to State and/or Federal fair housing laws.

In addition to the below criteria, a tenant of a Menlo Park BMR rental unit who is required to vacate the BMR rental unit due to its conversion to a BMR for- sale unit, shall have first priority for vacant BMR rental units for which the tenant is eligible and qualifies for two years from the expiration of the lease, regardless of the place of residence of the displaced tenant.

Preference criteria are set forth below. All preferences, aside from the accessible unit preference, carry the sameshall be given the same weight and/or ranking significance in formation of the interest final lottery ranking list.

Live and/or Work Preference: The applicant household’s primary residence is currently resides within incorporated Menlo Park as its primary residence orOR a member of the applicant household currently works or volunteers at least 20 hours per week within incorporated Menlo Park. Applicants must have lived AND/OR worked in Menlo Park for a minimum of one (1) year prior to the date of application. See Section 7.2 for live and work eligibility criteria.
• Criteria forLiving in residing within incorporated Menlo Park. To qualify as living in Menlo Park, the applicant household’s primary residence must be within incorporated Menlo Park. must meet the following two requirements at the time of application: (1) currently live in Menlo Park as the household’s primary residence. and (2) must have continuously lived in Menlo Park for a minimum of one (1) year prior to the date of actual application to purchase.

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16 • Criteria for working within incorporated Menlo Park. To qualify as a household that works in Menlo Park, a member of the applicant’s household must meet the following two requirements at the time of application: (1) currently work in Menlo Park at least 20 hours per week, or (if currently less than 20 hours per week) hours worked over the course of the one year prior to application averages a minimum of 20 hours per week. and (2) must have continuously worked in Menlo Park for a minimum of one year prior to the date of actual application to purchase.
o Types of work. Work is defined as (1) owning and operating a business at a Menlo Park location; (2) employment for wages or salary by an employer located at a Menlo Park location; (3) contract employment where the actual work is conducted at a Menlo Park location for one year; (4) commission work, up to and including a 100% commission arrangement, conducted in Menlo Park, or (5) volunteering for a community or civic serving entity located within Menlo Park, without receipt of compensation, wages or salary in exchange for such time and work.
o Employer-based work. If employed for wages or salary by an employer, working in Menlo Park is defined as the employer is located in Menlo Park andAND the employment/actual work is performed within incorporated Menlo Park.
o Owning (either wholly or in part) a residential or commercial property for investment purposes only shall not qualify as working within incorporated Menlo Park.

Displacement Preference: A person or household residing withinin incorporated Menlo Park in 2008 for three or more years thatwho was subsequently displaced from such housing and does not reside in Menlo Park at the date of submission of application, shall not be disqualified based on current lack of residency, provided they can show their displacement was due to economic conditions beyond their control (including but not limited to job loss, rent increase, eviction, foreclosure or other form of economic hardship resulting in loss of housing). Evidence of such economic displacement shall be in the form of direct evidence (i.e. job termination letter) or declarations submitted under penalty of perjury.

Accessible Unit Preference: If the BMR unit is an accessible unit, then persons and/or persons within a household with accessibility needs who are otherwise eligible for the Page F-5.52
17 BMR unit, including by household size and income, will receive preference for units with features serving those accessibility needs ahead of applicants without an accessibility need. Ranking of persons and households for accessible units shall follow the below list from highest to lowest in the order of lottery ranking:
• Person or household with an accessibility need meeting an existing Menlo Park preference, such as live and/or work, unhoused or displacement preference.
• Person or household with an accessibility need not meeting an existing Menlo Park preference
• Person or household meeting an existing Menlo Park preference • Person or household not meeting an existing Menlo Park preference Applicant households may submit applications and, if eligible, will be placed on the numbered BMR Purchase Waiting List in the order in which their applications were received and/or the BMR Rental InterestList, which is neither numbered nor ordered.

In accordance with Section 6.4, all members of the household must be first time homebuyers for inclusion on the BMR Purchase Waiting List.

7.2 BMR Purchase Waiting List Management. BMR units available for purchase are offered to households on the BMR Purchase Waiting List in the order in which the BMR Purchase Waiting List applications were received.

7.2.1 Annual affirmation of continued interest in remaining on the BMR Purchase Waiting List. On an annual basis, all households on the BMR Purchase Waiting List will be required to confirm their continued interest in remaining on the list.

At or around the same time each year, the City’s BMR Housing Program provider will mail and/or email annual update forms/applications to all current households on the BMR Purchase Waiting List. Households on the BMR Purchase Waiting List that wish to remain on the list are asked to complete the form and return it to the City’s BMR Housing Program provider within a specified period of time (usually about one month) with a $10 annual fee for processing. Households who do not respond by completing and returning the forms and the fee by the specified deadline, or whose mail is returned undeliverable to the City’s BMR Housing Program provider or who otherwise cannot be reached, shall be removed from the BMR Purchase Waiting List. This does not exclude households removed from the BMR Purchase Waiting List from re-applying to the list, to be added to the bottom of the list in accordance with normal procedures.

7.2.2 Complete One-Time Pre-Purchase Homebuyer Education for Households That Would Like to Purchase a BMR Unit. For households that indicate they would like to purchase BMR units, after households are placed on the BMR Purchase Waiting List and before receiving offers to purchase BMR properties, all adult Page F-5.53
18 applicants/household members must complete a one-time homebuyer education workshop, class, or counseling session, per Section 6.5.

7.2.3 When a BMR unit is offered for purchase, applicants must enter into a purchase agreement within a defined, reasonable period of time. If an applicant fails to do so, the BMR unit will be offered to the next eligible applicant on the BMR Purchase Waiting List. The City of Menlo Park reserves the right to establish other criteria to give preference to certain categories of eligible participants on the BMR Purchase Waiting List.

7.2.4 A tenant of a BMR rental unit who is required to vacate the BMR rental unit due to its conversion to a BMR for sale unit, shall have first priority for vacant BMR rental units for which the tenant is eligible and qualifies for two years from the expiration of the lease, regardless of the place of residence of the displaced tenant.

7.2.5 Preference for Handicap Accessible Units for Bona Fide Wheelchair Users. If the BMR unit is wheelchair accessible, then bona fide wheelchair users on the BMR Purchase Waiting List who are otherwise eligible for the BMR unit, including by household size and income, will receive preference over other applicants, and the BMR unit will be offered to the bona fide wheelchair users in the order that their applications were received.

7.2.6 Households who are current BMR homeowners are eligible to place their name on the BMR Purchase Waiting List and to purchase a smaller or larger home needed due to changes in their household size or family needs, such as for a handicapped accessible unit.8.2 BMR Purchase Legacy List. The City no longer maintains a ranked BMR purchase waitlist and no longer adds persons or households to this list. To honor households that maintained their ranking and were required to annually recertify, the City created a BMR Purchase Legacy List. Households on the previous ranked BMR purchase list as of January 1, 2021 were effectively notified and transferred to the BMR Purchase Legacy List, which allows these identified households to have priority over all other applicants. Once there are no longer any households remaining on the BMR Purchase Legacy List (either because households on the list have been placed in units pursuant to these Guidelines, or because households have withdrawn from the list), the list will be considered terminated.

98. THE BMR UNIT PURCHASE PROCESS: BUYER SELECTION AND SALE

PROCEDURES

9.18.1 New Units and Condominium Conversions.

89.1.1 The participating developer informs the City or its designee in writing that the BMR unit has received its final building inspection and that the BMR unit is ready for sale and occupancy. "The City" shall mean the City Manager, or his or her designee.

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19 89.1.2 City of Menlo Park staff or the City’s BMR Housing Program provider inspects the BMR unit. After approval of the unit, the City or the City’s BMR Housing Program provider writes a certifying letter that states the BMR unit meets the BMR Housing Program's requirements and satisfies the BMR Agreement's provisions.

The certifying letter will also state the price for the BMR unit. The price for the BMR unit will be determined based on the information described in the next three sections.

89.1.3 The City or its designee obtains necessary information for determining the price of the BMR unit. These include, but may not be limited to, the estimated tax figures from the developer and the County Assessor, as well as Homeowner's Association dues, Covenants, Conditions and Restrictions, and insurance figures from the developer. Also included will be all associated Homeowner Association documentation.

89.1.4 Household size and income qualifications are established. In households in which an adult holds 50% or more custody of a minor child or children through a legally binding joint custody settlement, each such child shall count as a person in determining the household size.

89.1.5 The City or its designee determines the maximum price of the BMR unit based on an income up to 120% of AMI (“AMI”) related to household size, as established from time to time by HCD for San Mateo County, monthly housing costs including current mortgage rates, insurance costs, homeowners' dues, taxes, closing costs and any other consideration of costs of qualifying for a first mortgage and purchase of the BMR unit. See Section 1415, Table A, for income eligibility limits, which may be updated by City staff from time to time. When these documents and the information described in this and preceding sections have been received, the City will provide the developer with a certifying letter in which the City states the price for the BMR unit, accepts the BMR unit as available for purchase and the purchase period will commence.

89.1.6 If there is a standard pre-sale requirement by the BMR applicant's lender for a certain percentage of units in the project to be sold before the BMR applicant's lender will close, then the time for the City's purchase or the buyer's purchase will be extended until that requisite number of units has closed.

89.1.7 The City may retain a realtor to facilitate the sale of the property.

89.1.8 Contact is established between the City or its designee and the developer's representative to work out a schedule and convenient strategy for advertisements, if needed, when the units will be open for viewing, and for when the interested applicants may obtain detailed information about the units.

89.1.9 All marketing and sales procedures for BMR units must be approved by the City and will be subject to review on a periodic basis for compliance.

89.1.10 An information packet and application forms are designed and duplicated by the City or its designee. The developer provides information about the Page F-5.55
20 unit, including a floor plan of the unit and of the building showing the location of the unit, dimensions, appliances, amenities, and finishes.

89.1.11 The City or the City’s BMR Housing Program provider holds an application orientation meeting(s). All person and Hhouseholds on the BMR Purchase Waiting List with the lowest numbers are contacted and are invited to attend the orientation meeting(s). Only households that are eligible by household size and have completed the one-time pre-purchase education requirement are contacted and invited to attend the orientation. Applications to purchase BMR units can only be obtained by attending an application orientation meeting. At the meeting, potential applicants are provided with the following information:
• A detailed description of the BMR Housing Program, including the rights, restrictions, and responsibilities of owning a BMR unit. • A complete description of the property or properties being offered for sale including buyer eligibility requirements, the purchase price, home owner association costs (if any), estimated property taxes, and home features. • An overview of the home loan application process and description of necessary costs including down payment (if required), closing costs, real estate taxes, and mortgage insurance.
• A description of the BMR and home loan approval process. Potential applicants are informed they must work with one of the program’s approved mortgage providers. Per the City’s discretion the potential applicants are also informed of the kinds of acceptable mortgage financing, and also of mortgage financing not allowed at that time (for instance negative amortizing loans).
• Based on the purchase price, estimates are provided on the minimum annual income required to purchase, as well as possible monthly housing costs including principal and interest, property taxes, and insurance payments.
• A step-by-step explanation of the BMR purchase application. If there are several sizes of units for which applicants may be eligible, applicants are instructed where to indicate their unit size preferences.

89.1.12 Completed applications are submitted to the City or its designee along with income and asset verifications.

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21 89.1.13 When the application period closes, the City or its designee reviews the completed applications. The complete, eligible, qualifying applications are ranked according to legacy list order and/or lottery ranking. in order by BMR Purchase Waiting List numbers and/or other criteria established by the City. The complete applications with the lowest numbers, and meeting other qualifying criteria for each unit, if any, are selected, and the households that submitted them are notified of the opportunity to purchase the BMR unit, in the order of their numbers on the BMR Purchase Waiting List. They are invited to an orientation meeting.

89.1.14 If the leading applicant for a unit fails to contact the developer, provide a deposit, or obtain appropriate financing within the period of time specified in the notification letter, the City or its designee will contact the next household on the list.

89.1.15 The City of Menlo Park or its designee submits to the title insurance company the Grant Deed, BMR Agreement and Deed Restrictions, and Request for Notice to be recorded with the deed to the property.

89.1.16 The developer shall be free to sell a BMR unit without restriction as to price or qualification of buyer if all of the following criteria are met, unless the BMR applicant's lender has a loan condition that a specific number of units in the development must be sold before the loan can be approved: (1) the City and the developer are unable to obtain a qualified buyer within six months after the City has provided written notice both certifying that the unit is available for purchase and setting the price for the BMR unit, (2) the City or its designee does not offer to purchase the BMR unit within said six months period, and complete said purchase within not more than 60 days following the end of the six month period, (3) the developer has exercised reasonable good faith efforts to obtain a qualified buyer. A qualified buyer is a buyer who meets the eligibility requirements of the BMR Housing Program and who demonstrates the ability to complete the purchase of the BMR unit. Written notice of availability shall be delivered to the City Manager, City of Menlo Park, 701 Laurel Street, Menlo Park, CA 94025.

Separate written notice of availability shall also be delivered to the City Manager, City of Menlo Park, 701 Laurel Street, Menlo Park, CA 94025.
910. OCCUPANCY REQUIREMENTS FOR OWNER-OCCUPIED BMR UNITS 910.1 Primary Residence. The owners listed on title to the BMR property must occupy it as their primary residence and remain in residence for the duration of the Deed Restrictions (55 years). Occupancy is defined as a minimum stay of 10 months in every 12 month period. BMR owners may not terminate occupancy of the BMR property and allow the property to be occupied by a relative, friend, or tenant. Failure of the purchaser to maintain a homeowner’s property tax exemption shall be construed as evidence that the BMR property is not the primary place of residence of the purchaser. As necessary, the City may request that BMR owners provide evidence that their units are currently occupied by them as their primary residences. Examples of such evidence may include current copies of any of the following: homeowner’s insurance, car/vehicle registration, and utility bills.

Page F-5.57
22 910.2 Refinancing and BMR Valuations. BMR owners may refinance the debt on their property at any time following purchase, however, they must contact the City’s designated BMR Housing Program provider first, prior to a refinance or equity line. The City’s BMR Housing Program provider will provide the owner with clear instructions to ensure program compliance. At that time and at any other time the owner requests it, the BMR Housing Program provider will provide the owner and/or the lender with the current BMR value of the home, in accordance with the formula specified in the Deed Restrictions. Only the City’s BMR Housing Program provider can determine the appraised value of a BMR unit and it is the owner’s responsibility to inform their lender that the property is a BMR unit. BMR owners are not allowed to take out loans against their property that exceed the BMR value of the home. There is a fee for refinancing a BMR unit that is set by the City’s BMR Housing Program provider. 910.3 Transfers of Title. Prior to adding an additional person to title or transferring title to the BMR unit, BMR owners must contact the City for clear instructions to ensure program compliance.

The following transfers of title are exempt from the City’s right of first refusal and do NOT re-start the 55 year deed restriction clock:
• Transfer by devise or inheritance to the owner’s spouse. • Transfer of title by an owner’s death to a surviving joint tenant, tenant in common, or a surviving spouse of community property (that is, another owner already on title).
• Transfer of title to a spouse as part of divorce or dissolution proceedings. • Transfer of title or an interest in the property to the spouse in conjunction with marriage.

For transfers of title by devise or inheritance, the inheriting party (“Transferee”) must meet the following terms and conditions in order to live in the BMR unit:

Page F-5.58
23 • Transferee shall occupy, establish and maintain the property as the Transferee’s primary residence.
• The Transferee must meet all current eligibility requirements for the BMR Housing Program, as identified at the time of transfer in the BMR Guidelines.
• The Transferee must sign a new BMR Agreement and Deed Restrictions for the property. This restarts the 55 year clock.
1011. PROCESS FOR RESALE OF BMR UNITS
1011.1 The seller notifies the City by certified mail that he/she wishes to sell the unit. The City notifies its designee, if applicable. The unit must be provided in good repair and salable condition, or the cost of rehabilitating the unit will be reimbursed to the City out of the proceeds of the sale. The definition of “salable condition” for any given unit shall be provided on a case-by-case basis following the City’s inspection of the unit, and shall be at the discretion of the City Manager or his/her designee. “Salable condition” shall refer to the general appearance, condition, and functionality of all:
flooring; painted surfaces; plumbing, heating, and electrical systems; fixtures; appliances; doors; windows; walkways; patios; roofing; grading; and landscaping. In addition for each unit, the City reserves the right to withhold the cost of having it professionally cleaned from the seller’s proceeds. Once cleaning is complete, the seller will be refunded any difference between the amount withheld and the actual cost to clean the unit.
1011.2 When the seller notifies the City or the City’s BMR Housing Program provider, and it has been determined that the unit is in good repair and salable condition, and the City has set the price for the BMR unit, then the City or the City’s BMR Housing Program provider will state in writing that the 180 day period for completing the sale of the BMR unit shall commence. The price will be set using information in Sections 1011.3 through 1011.6 below.
1011.3 The City or its designee obtains an appraisal made to ascertain the market value of the unit, giving consideration to substantial improvements made by the seller, if needed.
1011.4 The City or its designee obtains figures for homeowners' dues, insurance, and taxes from the seller.
1011.5 The City or its designee checks major lending institutions active in this market to ascertain current mortgage information (prevailing interest rates, length of loans available, points, and minimum down payments). Monthly housing costs are estimated.
1011.6 The City or its designee establishes a sales price, based on the original selling price of the unit, depreciated value of substantial improvements made by Page F-5.59
24 the seller, and 1/3 of the increase in the cost of living index for the Bay Area. The selling price is established for the unit at the appraised market value or the computed price whichever is the lower.
1011.7 The City retains a realtor to facilitate the sale of the property. 1011.8 Agreement is reached between seller and the City or its designee for a schedule of open houses for the unit, at the seller's convenience. 1011.9 The procedure continues the same as in Sections 98.1.7 – 98.1.16 above, with the seller substituted for the developer.
1011.10 The City or its designee submits to the title insurance company the Grant Deed, BMR Agreement and Deed Restrictions, and Request for Notice and the seller's release from the previous Deed Restrictions, to be recorded with the new deed to the property.
1112. REQUIREMENTS FOR BMR RENTAL DEVELOPMENTS
1112.1 Income and Rent Standards.
1112.1.1 Income Limits upon Occupancy of BMR Rental Units. Unless otherwise approved by the Planning Commission or City Council in the BMR Housing Agreement for the proposed project, only households having gross incomes at or below Low Income for San Mateo County, adjusted for household size, are eligible to occupy BMR rental units, either when initially rented or upon filling any subsequent vacancy.

See Section 1415, Table A (Below Market Rate Household Income Limits), which may be updated by City staff from time to time. Any variation in the affordability mix to assist the City in meeting its Regional Housing Needs Assessment (including very low, low or moderate income households) shall require a finding by the approving body that the mix is roughly equivalent to the provision of all of the affordable units at the low income level. 1112.1.2 BMR Rent. BMR units may be rented for monthly amounts not exceeding thirty percent (30%) of the income limit for extremely low, very low, subsidized low, low or moderate income households adjusted for occupancy, as established from time to time by the HCD for San Mateo County. In no case shall the monthly rental amounts for BMR units exceed 75% of comparable market rate rents.

The maximum rental amounts are listed in Section 1415, Table B, (Maximum Monthly Housing Cost Limits for BMR Rental Units), which may be updated by City staff from time to time. BMR rents may be adjusted from time to time to reflect any changes to the then current Income limits.
1112.1.3 Tenant Selection and Certification Procedures. Priority for occupancy of all BMR rental units shall be given to those income eligible households who meet the preference criteria defined in section 8.1either live or work in the City of Menlo Park as defined is Sections 6.2 and 7.1 of these Guidelines. If no qualified Page F-5.60
25 household living or working in Menlo Park is available to occupy the vacated unit as aforesaid, the owner shall be free to rent the BMR unit to any other eligible BMR tenant. 1112.1.4 BMR Rental Interest List. The qualifications of BMR rental tenants as described in Section 78.1, above, will be independently verified by the owner.

The City of Menlo Park or the City’s designee shall maintain a BMR Rental Interest List and shall make it available to any owner/developer upon request. 1112.1.5 One-Year Lease Offer. Each BMR tenant shall be offered the opportunity to enter into a lease, which has a minimum term of one year. Such offer must be made in writing. If the tenant rejects the offer, such rejection must also be in writing.

A lease may be renewed upon the mutual agreement of both parties. 1112.1.6 Vacation of Units and Re-Renting. When a BMR tenant vacates, the owner must provide notice to the City, and re-rent the unit to a qualified BMR tenant in accordance with these BMR Guidelines and the BMR Housing Agreement for the unit.
1112.1.7 Annual Recertification of BMR Units. The City of Menlo Park or the City’s BMR Housing Program provider will recertify annually, by procedures to be established in the BMR Housing Agreement, the provision of BMR rental units as agreed at the time of application for the permit. A qualified BMR tenant shall continue to qualify unless at the time of recertification, for two consecutive years, the household’s income exceeds the eligibility requirements, then the tenant shall no longer be qualified.

Upon the owner’s determination that any such household is no longer qualified, the unit shall no longer be deemed a BMR Unit, and the owner shall make the next available unit, which is comparable in terms of size, features and number of bedrooms, a BMR (the “Next Available Unit Requirement”), or take other actions as may be necessary to ensure that the total required number of units are rented to qualifying BMR households.

The owner shall notify the City annually if it substitutes a different unit for one of the designated BMR Units pursuant to this paragraph.
1112.1.8 Annual Report. On an annual basis on or before July 1 of each year, the developer or subsequent owner shall submit a report (the “Annual Report”) to the City which contains, with respect to each BMR unit, the name of the eligible tenant, the rental rate and the income and household size of the occupants. The Annual Report shall be based on information supplied by the tenant or occupant of each BMR unit in a certified statement executed yearly by the tenant on a form provided or previously approved by the City or designee. Execution and delivery thereof by the tenant may be required by the terms of the lease as a condition to continued occupancy at the BMR rate. In order to verify the information provided, City shall have the right to inspect the books and records of developer and its rental agent or bookkeeper upon reasonable notice during normal business hours. The Annual Report shall also provide a statement of the owner’s management policies, communications with the tenants and maintenance of the BMR unit, including a statement of planned repairs to be made and the dates for the repairs.

Page F-5.61
26 1213. EQUIVALENT ALTERNATIVES
Nothing set forth herein shall preclude the City from approving reasonably equivalent alternatives to these BMR Guidelines, including, but not limited to, in lieu fees, land dedication, off-site construction or acquisition and rehabilitation of units.

Additionally, the City reserves the right to approve reasonably equivalent alternatives to the characteristics of the proposed BMR units and the affordability mix. Any modifications to these Guidelines shall be approved by the City Council and shall contain findings that the alternative is commensurate with the applicable requirement(s) in the BMR Guidelines and is consistent with the goals of the BMR Guidelines. 1314. BELOW MARKET RATE HOUSING FUND AND SEVERABILITY CLAUSE 1314.1 Purpose. The City of Menlo Park Below Market Rate Housing Fund (“BMR Housing Fund”) is a separate City fund set aside for the specific purpose of assisting the development of housing that is affordable to very low, low and moderate income households. The BMR Housing Fund is generated by such income as in-lieu fees. All monies contributed to the BMR Housing Fund, as well as repayments and interest earnings accrued, shall be used solely for this purpose, subject to provisions set forth below.
1314.2 Eligible Uses. The BMR Housing Fund will be used to reduce the cost of housing to levels that are affordable to very low, low and moderate income households, as defined in the Housing Element of the City's General Plan. A preference will be given to assisting development of housing for households with minor children; however, this preference does not preclude the use of funds for other types of housing affordable to households with very low, low and moderate incomes. 1314.3 Eligible Uses in Support of Very Low, Low and Moderate Income Housing Development. The BMR Housing Fund may be used for, but is not limited, to the following:
• Provision of below market rate financing for homebuyers. • Purchase of land or air rights for resale to developers at a reduced cost to facilitate housing development for very low, low or moderate income households.
• Reduction of interest rates for construction loans or permanent financing, or assistance with other costs associated with development or purchase of very low, low or moderate income housing.
• Rehabilitation of uninhabitable structures for very low, low or moderate income housing.
• On-site and off-site improvement costs for production of affordable housing.

Page F-5.62
27 • Reduction of purchase price to provide units that are very low, low or moderate cost.
• Rent subsidies to reduce the cost of rent for households with limited incomes.
• Emergency repair and/or renovation loan program for BMR owners of older units.
• Loan program to assist BMR condominium owners who have no other way to pay for major special assessments.
• City staff time and administrative costs associated with implementation of the BMR Housing Program.
1314.4 Procedures. Requests for use of BMR Housing Fund money shall be submitted to staff for review and recommendation to the City Council. A request for funding shall provide the following minimum information:
• A description of the proposal to be funded and the organizations involved in the project. Public benefit and relevant Housing Element policies and programs should be identified.
• Amount of funding requested.
• Identification of the number of very low, low and moderate income households to be assisted and the specific income range of those assisted. • Reasons why special funding is appropriate.
• Identification of loan rate, financial status of applicants, and source of repayment funds or other terms.
• Identification of leverage achieved through City funding. 1314.5 Annual Report. At the close of each fiscal year, City staff shall report on activity during the previous year (deposits and disbursements) and available funds. The City's auditor shall periodically examine this report and all other BMR Housing Fund financial records, and shall report the results of this examination. In addition, City staff shall report annually on activities assisted by monies from the BMR Housing Fund.

The report will review how the program is serving its designated purpose. It will include a discussion of the timely use of funds for actions taken to provide BMR housing units, a review of management activities, and staff recommendations for policy changes to improve the program's performance. In addition, it will provide, for each activity, information corresponding to that required of funding requests listed above in Section

13.4. Page F-5.63
28 1314.6 Severability Clause. If any one or more of the provisions contained in the BMR Guidelines shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then such provisions shall be deemed severable from the remaining provisions contained in the BMR Guidelines, and the BMR Guidelines shall be construed as if such invalid, illegal or unenforceable provision(s) had never been contained herein.
1314.7 Administrative Updates. Future updates to tables in Section 14 15 may be made annually without City Council approval when data becomes available from the appropriate state and federal agencies.

Page F-5.64
29 1415. TABLES
Table A
Below Market Rate Household Income Limits
2021 Income Limits
Area Median Income: $149,600 (for a household of 4 persons) effective April 26, 2021 Household Size
Income Category 1 2 3 4 5 6 7
Extremely Low Income 38400 43850 49350 54800 59200 63600 68000 Very Low Income 63950 73100 82250 91350 98700 106000 113300 Low Income 102450 117100 131750 146350 158100 169800 181500 Median Income 104700 119700 134650 149600 161500 173550 185550 Moderate Income 125650 143600 161550 179500 193850 208200 222600 https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits/docs/income-limits2021.pdf Table B
Maximum Affordable Rent Payment
2021 Rent Limits
Area Median Income: $149,600 (for a household of 4 persons) effective April 26, 2021 Maximum Rents Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Very Low Income 1598 1713 2056 2375 2650
Low Income 2561 2738 3293 3805 4245
Moderate Income 3141 3365 4038 4666 5205
NOTE 1: The maximum rent is based on the following household size for each unit: Studio: 1 person; 1- bedroom: 1.5 persons; 2-bedroom: 3 persons; 3-bedroom: 4.5 persons; 4-bedroom: 6 persons.

Unit Number of Persons
Size Minimum Maximum
Studio 1 2
1 1 43
2 2 5
3 3 7
4 4 9
Note: The City Manager or his/her designee has the discretion to vary the persons per unit for unusually large units, not to exceed one person per bedroom, plus one.

Table D
Commercial In-Lieu Fees for July 1, 2021 – June 30,
20222017-18
Group A uses are Research &
Development and Office.

Fee: $16.9020.46 per square foot of
gross floor area.

Group B uses are all other
Commercial Uses not in Group A.

Fee: $9.1711.10 per square foot of
gross floor area.

Commercial In-Lieu Fees are adjusted annually on July 1. Annual fee adjustments are posted on the City’s website.

Page F-5.66
City Manager's Office
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org

STAFF REPORT
City Council
Meeting Date: 3/1/2022
Staff Report Number: 22-038-CC
Consent Calendar: Adopt a resolution to continue conducting the City’s Council and advisory body meetings
remotely due to health and safety concerns for the
public and to authorize the use of hybrid meetings
Recommendation
Staff recommends that the City Council adopt a resolution (Attachment A) to continue conducting the City’s Council and advisory body meetings remotely due to health and safety concerns for the public and to authorize the use of hybrid meetings.

Policy Issues
Assembly Bill 361 (AB 361) was signed into law September 16, 2021 allowing cities to continue holding virtual meetings during any emergency proclaimed by the governor. AB 361 sunsets January 1, 2024. The City Council would need to declare every 30 days that the City’s legislative bodies must continue to meet remotely in order to ensure the health and safety of the public.

Background
The California Legislature approved AB 361, which was signed by the governor September 16, 2021 for signature. The bill allows local legislative bodies to continue to meet remotely through January 1, 2024. A local agency will be allowed to continue to meet remotely when:
• The local agency holds a meeting during a declared state of emergency • State or local health officials have imposed or recommended measures to promote social distancing • Legislative bodies declare the need to meet remotely due to present imminent risks to the health or safety of attendees
The City meets the requirements to continue holding meetings remotely in order to ensure the health and safety of the public:
• The City is still under a local state of emergency
• County Health orders require that all individuals in public spaces maintain social distancing and wear masks
Analysis
The City is still under a local state of emergency and the emergency findings required under AB 361 are still in effect. It is recommended that the use of facial coverings be exercised when not speaking inside the City Council Chambers. The resolution authorizes the use of hybrid meetings, whereby City Councilmembers and staff may choose to attend either remotely or in person.

AGENDA ITEM F-6
Page F-6.1
Staff Report #: 22-038-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Although the City has returned to in-person meetings, due to the increase in infection rates of COVID-19 as a result of the Omicron and Delta variants, the City Council finds that reducing the number of persons present in City Council chambers is necessary to reduce imminent health risks associated with large groups and/or members of varying households gathering indoors.

Impact on City Resources
There is no impact on City resources.

Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§ 15378 and 15061(b)(3) as it is an organizational structure change that will not result in any direct or indirect physical change in the environment.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Resolution
Report prepared by:

Judi A. Herren, City Clerk
Page F-6.2
RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK AND

ON BEHALF OF COMMISSIONS AND COMMITTEES CREATED BY THE CITY

COUNCIL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION
54952(b) AUTHORIZING TELECONFERENCE MEETINGS IN COMPLIANCE WITH AB 361 (GOVERNMENT CODE SECTION 54953(e) TO CONTINUE TO

ALLOW MEMBERS OF THE PUBLIC TO SAFELY PARTICIPATE IN LOCAL

GOVERNMENT MEETINGS
WHEREAS, the City Council is committed to ensuring public access to observe and participate in local government meetings; and
WHEREAS, all meetings of the City Council and other legislative bodies created pursuant to Government Code Section 54952(b) are open and public, as required by the Ralph M. Brown Act, so that any member of the public may participate in local government meetings; and WHEREAS, the AB 361, codified at Government Code section 54953(e), makes provisions for remote teleconferencing participation in local government meetings, without compliance with the requirements of 54953(b)(3), during a Governor-proclaimed state of emergency and if the local legislative body determines, by majority vote, that as a result of the emergency, meeting solely in person would present imminent risks to the health or safety of attendees, and WHEREAS, on March 4, 2020, Governor Newsom proclaimed a State of Emergency due to the outbreak of respiratory illness due to a novel coronavirus (now known as COVID 19) and that State of Emergency is still in effect in the State of California; and WHEREAS, on March 11, 2020 the City Council proclaimed the existence of a local state of emergency within the City, pursuant to Section 8625 of the California Emergency Services Act in response to the COVID-19 pandemic; and
WHEREAS, COVID-19 continues to threaten the health and lives of City residents; and WHEREAS, the SARS-CoV-2 Delta and Omicron Variants are highly transmissible in indoor settings; and
WHEREAS, San Mateo County, the State of California and the Country in general, are currently facing a surge in infection rates due to the Omicron variant. According to data from the County’s Health Administrator and County website, the County is averaging approximately 225 new cases of COVID-19 per day; and
WHEREAS, although the City has returned to in-person meetings, due to the increase in infection rates of COVID-19 as a result of the Omicron and Delta variants, the City Council finds that reducing the number of persons present in City Council chambers is necessary to reduce imminent health risks associated with large groups and/or members of varying households gathering indoors; and
WHEREAS, The State of California and the City of Menlo Park continue to follow safety measures in response to COVID-19 as ordered or recommended by the Centers for Disease Control and Prevention (CDC), California Department of Public Health (DPH), and/or County of San Mateo, as applicable, including facial coverings when required; and based upon that Page F-6.3 ATTACHMENT A
Resolution No. XXXX

Page 2 of 3 ends

guidance, in-person attendance indoors at public meetings continues to present a health risk for certain segments of the population, necessitating the need to reduce the number of in-person meeting attendees; and
WHEREAS, the City Council, acting as a legislative body pursuant to Government Code section 54952(a) and for the benefit of the commissions, committees and other bodies that were created by the City Council pursuant to Government Code section 54952(b) (collectively referred to as “Legislative Bodies”), finds that the current conditions meet the circumstances set forth in Government Code section 54953(e)(3) to allow Legislative Bodies to continue to use teleconferencing to hold open and public meetings if the Legislative Bodies comply with the requirements set forth in Government Code section 54953(e)(2) to ensure the public can safely participate in and observe local government meetings.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Menlo Park that the City Council does hereby:

1. Find that current conditions authorize teleconference public meetings of Legislative Bodies.

Based on the California Governor’s continued declaration of a State of Emergency and current conditions, the City Council finds that meeting in person, without the option for certain populations and persons to participate remotely, would present imminent risks to the health or safety of attendees. The City Council does therefore find that Legislative Bodies and members of Legislative Bodies of the City may elect to use teleconferencing to hold public meetings in accordance with Government Code section 54953(e)(2) to ensure members of the public have continued access to safely observe and participate in local government meetings.

2. Authorize Legislative Bodies to conduct teleconference meetings. The Legislative Bodies are hereby authorized to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public meetings in accordance with Government Code section 54953(e)(2) and other applicable provisions of the Brown Act.

3. Authorize Legislative Bodies to conduct hybrid meetings. The Legislative Bodies are hereby further authorized to conduct meetings in a “hybrid” format, where both members of the Body may elect to be present in person, utilizing appropriate distancing and masking practices, or participate by teleconferencing technology. Such meetings of the Legislative Bodies that occur using teleconferencing technology will provide an opportunity for any and all members of the public who wish to address Legislative Bodies and will otherwise occur in a manner that protects the statutory and constitutional rights of parties and the members of the public attending the meeting via teleconferencing
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Page F-6.4
Resolution No. XXXX

Page 3 of 3 ends

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of March, 2022.

Judi A. Herren, City Clerk
Page F-6.5
Public Works

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org

STAFF REPORT
City Council
Meeting Date: 3/1/2022
Staff Report Number: 22-042-CC
Public Hearing: Declare a water shortage emergency pursuant to Water Code section 350, adopt Stage 1 Drought
Measures pursuant to City’s 2020 Water Shortage
Contingency Plan, and adopt a Water Conservation
Plan implementing State Water Resources Control
Board emergency regulations
Recommendation
Staff recommends that the City Council hold a public hearing, in accordance with Water Code section 350 et seq., to declare the existence of a water shortage emergency condition, adopt and implement the City’s stage 1 Water Shortage Contingency Plan (WSCP), and adopt a Water Conservation Plan by resolution pursuant to Menlo Park Municipal Code Chapter 7.35 (Attachment A) to enforce the State Water Resources Control Board’s (State Water Board) emergency regulations prohibiting wasteful water use practices.

Policy Issues
Menlo Park Municipal Water (MPMW) is a city-owned water service provider for a portion of the City of Menlo Park. The City Council acts as the governing body for MPMW and is responsible for ensuring the financial stability of the water system including setting customer rates, approving capital plans and other operational expenditures, and declaring a drought by specifying the drought stage as outlined in the adopted 2020 WSCP.

Pursuant to the City’s adopted WSCP, the City will follow the process set forth in Water Code section 350 to hold a public hearing determining a water shortage emergency, and adopt regulations to implement and enforce the appropriate stage of the WSCP. The adopted 2020 WSCP outlines prescribed actions for six drought stages of various severity, but provides flexibility to incorporate additional water measures based on the City’s determination that additional measures are necessary, or any future emergency water regulations adopted by the State Water Board, drought-related actions imposed by the San Francisco Public Utilities Commission (SFPUC) as the water wholesaler, or other appropriate actions in order to meet MPMW’s water reduction goal.

Per Menlo Park Municipal Code, Chapter 7.35 (Water Conservation), the City must also enforce any drought regulations adopted by the State Water Board, or drought-related actions imposed by SFPUC. This chapter specifies that the City shall implement these requirements by adopting, by resolution, a Water Conservation Plan that mandates such requirements.

Background
MPMW supplies water to roughly half of the City to approximately 19,000 residents through almost 4,300 service connections. MPMW purchases all of its water from SFPUC and is a member of the Bay Area Water Supply and Conservation Agency (BAWSCA), a special district that represents the interest of 26 cities, AGENDA ITEM G-1 Page G-1.1
Staff Report #: 22-042-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org water districts, and private utilities that are long term purchasers of SFPUC wholesale water.

On May 2, 2017, the City Council adopted Resolution No. 6383 (Attachment B) to implement a Water Conservation Plan consistent with the end of the drought emergency. The Plan references the State Water Board’s 2017 emergency drought regulations which have since expired by operation of law and the City’s previous 2015 Urban Water Management Plan (UWMP) and the 2015 WSCP, which have been superseded by the 2020 plans, as described below. As Resolution No. 6383 is no longer in effect, staff has included appropriate text in the proposed draft resolution to expressly rescind Resolution No. 6383.

After a one-year delay due to the onset of the COVID-19 pandemic and after completing a Proposition 218 notification process, the City Council adopted Resolution No. 6625 May 11, 2021, approving MPMW water rate increases for the next five years. The new rates met several objectives including updating drought surcharges to match the State Water Board’s six drought stages as outlined in the 2020 WSCP (up to 10 percent, 20 percent, 30 percent, 40 percent, 50 percent, and greater than 50 percent water reduction goals.) The purpose of the drought surcharge is to recover lost revenue (due to less water sales) in order for the water fund to meet target reserves and cover operating, maintenance and capital expenditures. Drought surcharges are only in effect if the City Council declares a drought and specifies the drought stage.

On May 25, 2021, the City Council adopted two plans: the 2020 UWMP, which requires urban water suppliers to describe and evaluate their water supply sources and reliability over the next 20 years, and the 2020 WSCP, which outlines MPMW’s response and plan for changes or shortages in water supplies. The WSCP provides flexibility to incorporate additional water conservation measures based on any future emergency water regulation adopted by the State Water Board, drought-related actions imposed by SFPUC, or other appropriate actions in order to meet MPMW’s water reduction goal. Attachment C lists the 2020 WSCP six drought stages along with corresponding conservation measures to consider implementing and ways the City can respond.

On July 8, 2021, Governor Newsom expanded an emergency declaration to nine additional counties, including San Mateo County, bringing the total to 50 counties across the state now under a drought state of emergency and requested that all users voluntarily reduce water use by 15 percent. On October 19, 2021, Governor Newsom’s emergency drought proclamation expanded the drought emergency statewide and encouraged the State Water Board to supplement voluntary conservation measures by prohibiting certain wasteful water uses. As a result of the emergency declaration by the Governor, Water Code section 365 through 367 requires that each affected urban retail water provider implement either (i) drought surcharges or (ii) enforce an ordinance that prohibits excessive water use by imposing fines of up to $500 for each 748 gallons used by customers in excess of the permitted allowance set by the water provider. The second option would require establishing water budgets for each individual customer in order to monitor and enforce excessive use, which would be time intensive. Because the City’s adopted rate structure sets forth drought surcharges, staff recommends implementing the drought surcharges.

On November 23, 2021, the SFPUC declared a water shortage emergency and adopted a voluntary 10 percent system-wide water use reduction from fiscal year 2019-20 use (which equates to a 14 percent water use reduction for BAWSCA member agencies.) SFPUC has stated that they will not impose excess use charges during periods of voluntary reductions. In mid-December 2021, SFPUC issued proposed monthly water budgets to each wholesale customer, including MPMW, based on the 2018 Amended and Restated Water Supply Agreement Water Shortage Allocation Plan, and in early January 2022, they finalized the monthly water budgets. SFPUC will provide monthly reports to each agency showing the previous month’s use against the final monthly water budgets for a 12-month cycle starting February 2022 (showing January 2022 data.) The SFPUC expects to restart the reporting cycle if they change to mandatory reductions. On February 16, MPMW received the January 2022 monthly report showing that water purchases were below Page G-1.2
Staff Report #: 22-042-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org the monthly budget by 4 percent.

On January 18, 2022, the State Water Board’s emergency regulations became law and will remain in place for one year unless the State Water Board acts to end, modify or readopt it. The following seven measures are prohibited actions that affect all water users statewide, and water agencies have the ability to enforce them through infractions of up to $500 per event. Exceptions are allowed to the extent water use is necessary to address an immediate health and safety need (e.g., controlling nuisance dust, suppressing fires, and removing pathogenic waste from sidewalks.)
• Applying water to outdoor landscapes that cause more than incidental runoff (e.g., excessive application, negligence, intentional overflow.)
• Washing vehicles without an automatic shut-off nozzle. • Washing impervious areas unless it addresses an immediate health and safety need. • Irrigating turf and ornamental landscapes within 48 hours of measurable rainfall (1/4” of rainfall) - does not apply to trees.
• Using/filling/topping off decorative fountains, lakes, or ponds with potable water unless pumps recirculate water.
• Irrigating turf on public medians.
• Using potable water for street cleaning or construction site preparation purposes unless no other method is available (e.g., mixing concrete) or as needed to protect the health and safety of the public.

The emergency regulations also prohibit homeowners associations from threatening or fining property owners for eliminating or reducing water of lawns or vegetation during the declared period of drought emergency, and allows direct enforcement against homeowners associations for any violations.

Analysis
Of the 26 BAWSCA agencies that purchase water from SFPUC, eight agencies are currently in drought stage 1 (including California Water Service, Bear Gulch District) and eight agencies are in drought stage 2.

Currently, MPMW has not implemented a drought stage or a drought surcharge. Since the State Water Board recently adopted a drought regulation, and SFPUC declared a voluntary 10 percent system-wide water shortage emergency and established monthly water budgets for water suppliers, staff recommends the City Council declare drought stage 1 (up to 10 percent conservation level.) Declaring drought stage 1 would trigger the corresponding drought surcharge. If drought surcharges are not implemented with the drought stage, the water fund may not meet target reserves and cover operating, maintenance and capital expenditures. The fiscal year 2021-22 budget estimated $15,788,000 in revenues and between July and December 2021 (six months), MPMW has collected $7,734,819 in revenue (49 percent.) Table 1 shows the drought surcharges for fiscal years 2021-22 and 2022-23 adopted with the fiveyear water rates in 2021. While the surcharge could be effective immediately, staff is recommending implementing the stage 1 drought surcharge starting with customers’ July water bills in order to allow sufficient time to notify water customers and coordinate with the billing contractor. The surcharge would apply to all customers based on total metered water use and would be itemized separately on customer monthly bills. The drought surcharge would be $0.63 per CCF July 1 along with the annual water rate increase, and the SFPUC wholesale rate pass-through (described in detail below.) Page G-1.3
Staff Report #: 22-042-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Table 1: Drought surcharges
Drought stage Water use reduction Fiscal year 2021-22 Fiscal year 2022-23 1 Up to 10% $0.60 per CCF $0.63 per CCF
2 Up to 20% $1.36 per CCF $1.40 per CCF
3 Up to 30% $2.32 per CCF $2.39 per CCF
4 Up to 40% $3.61 per CCF $3.67 per CCF
5 Up to 50% $5.42 per CCF $5.43 per CCF
6 Greater than 50%
(surcharge shown is for
60%)
$8.12 per CCF $7.98 per CCF
The City must adopt, by resolution, a Water Conservation Plan that includes the State’s drought regulations at a minimum. Per the 2020 WSCP, the City may implement actions listed or incorporate other demand reduction measures. Comparing the 2020 WSCP no-drought and drought stage 1 demand reduction actions to the State Water Board’s regulations (Attachment D), the 2020 WSCP includes additional demand reduction measures that could be added to the Water Conservation Plan. • Hotels and motels shall provide guests an option whether to launder towels and linens daily. • Restaurants and other food service operations shall serve water to customers only upon request. • Broken or defective plumbing and irrigation systems must be repaired or replaced within a reasonable period, not exceeding seven days.
• Recreational water features shall be covered when not in use. • Newly constructed homes and buildings must irrigate with drip or microspray only.

As these measures were implemented at the end of the last drought and water customers may already be familiar with them, staff recommends including them in the Water Conservation Plan.

The draft resolution includes fines and enforcement. For better efficiency, staff recommends a four-step process in lieu of the six-step process that is included in the 2020 WSCP. Staff also recommends matching the disconnection and reconnection fees shown in the current master fee schedule for water bill nonpayment. Staff intends to focus on customer education as much as possible prior to resorting to fines and enforcement. For example, in the last drought between 2014-2017, the City issued only one fine (at the $50 level) against a business that had repeated irrigation violations. The proposed four-step process would align with continuing this focus on education.

Anticipated SFPUC wholesale rate increases
In December 2021, the SFPUC provided a letter to its wholesale customers, including MPMW, stating that fiscal year 2022-23 wholesale water rates are estimated to range between $4.63 to $5.13 per hundred cubic foot (CCF, where one CCF equals 748 gallons.) This estimate is higher than the projected fiscal year 2022- 23 wholesale water rate of $4.19 per CCF provided previously by SFPUC and assumed for purposes of the 2021 five-year water rate study. Pursuant to California Government Code 53756, MPMW is able to passthrough any additional increases in SFPUC wholesale water rates when the actual SFPUC rates exceed estimates, given that all water customers receive at least 30 days’ notice. Therefore, the SFPUC wholesale pass-through rate to MPMW water customers is estimated to range between $0.44 to $0.94 per CCF.

SFPUC will provide their final fiscal year 2022-23 wholesale rate notice this April/May at which time staff will calculate the pass-through rate and notify water customers 30 days in advance of implementing the passthrough rate on water bills.

Page G-1.4
Staff Report #: 22-042-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Impact on City Resources
Moving into drought stage 1 will require staff to enhance outreach efforts to educate residents and businesses of the new requirements and the drought surcharge, respond to calls and customer inquiries, investigate water waste, enforce, and submit required reports to the State Water Board. Current staff can likely handle these additional items for drought stage 1, however, if a higher drought stage is declared in the future, additional staff will be needed to investigate water waste and enforcement.

Environmental Review
City Council’s adoption of the proposed resolution is categorically exempt from California Environmental Quality Act (CEQA) under CEQA Guidelines 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and CEQA Guidelines section 15308 (Actions for Protection of the Environment), in that it is intended to ensure adequate water supplies for the preservation of public health, safety, fire prevention, during a declared period of drought. The action is also exempt from CEQA pursuant to CEQA Guidelines section 15269, as a specific action necessary to prevent or mitigate an emergency.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. Notice of the public hearing was also published in the manner required by Water Code section 352.

Attachments
A. Draft Resolution to adopt a Water Conservation Plan
B. Resolution No. 6383 to adopt a Water Conservation Plan consistent with the end of the drought emergency
C. Table – Drought stages and actions, 2020 WSCP
D. Table – Comparison of drought actions, 2020 WSCP vs. State Water Board Drought Regulation Report prepared by:

Pam Lowe, Senior Civil Engineer
Reviewed by:

Karen E. Pachmayer, Interim Assistant Public Works Director Page G-1.5
RESOLUTION NO. XXXX

RESOLUTION OF THE MENLO PARK CITY COUNCIL DECLARING

EXISTENCE OF A WATER SHORTAGE EMERGENCY, ADOPTING WATER SHORTAGE CONSERVATION PLAN STAGE 1 MEASURES PURSUANT TO WATER CODE SECTION 350 ET SEQ., AND ADOPTING A WATER

CONSERVATION PLAN TO ENFORCE STATE WATER RESOURCES

CONTROL BOARD EMERGENCY DROUGHT REGULATIONS PURSUANT TO MENLO PARK MUNICIPAL CODE CHAPTER 7.35
WHEREAS, on May 2, 2017, in response to the then existing drought emergency, the City Council adopted Resolution No. 6383 to implement a Water Conservation Plan for Menlo Park Municipal Water (“MPMW”) consistent with the end of the drought emergency. The Plan references the 2015 Urban Water Management Plan, which includes the 2015 Water Shortage Contingency Plan, and the State Water Resources Control Board’s (“State Water Board”) 2017 emergency drought regulations, all of which have been superseded or no longer in effect, making it appropriate to rescind Resolution No. 6383; and WHEREAS, on May 11, 2021, pursuant to its rate setting authority and in accordance with all applicable requirements under Proposition 218, the City Council adopted Resolution No. 6625 to approve MPMW’s five-year schedule of water rates, which included analysis and approval of drought surcharges in the proposed 2020 Water Shortage Contingency Plan; and WHEREAS, on May 25, 2021, the City Council adopted its 2020 Urban Water Management Plan and the 2020 Water Shortage Contingency Plan, as required by the California Water Code, and which includes six drought stages; and
WHEREAS, the 2020 Water Shortage Contingency Plan provides that the City of Menlo Park shall follow the process set forth in Water Code section 350 to adopt and implement regulations and restrictions related to the conservation measures set forth in the Water Shortage Contingency Plan, including implementation of its drought stages; and WHEREAS, California Water Code sections 350 et seq. authorizes the governing body of any public water supply distributor to declare that water shortage emergency conditions prevail within the area served by such distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection; and
WHEREAS, pursuant to Water Code sections 351 and 352, a public hearing on regarding declaration was duly noticed and held on March 1, 2022; and WHEREAS, pursuant to Water Code section 353, the City Council has authority to adopt such regulations and restrictions on the delivery of water and the consumption within the service area of MPMW that in the sound discretion of the City Council shall conserve the water supply for the greatest public benefit with regard to domestic use, sanitation, and fire protection; and ATTACHMENT A Page G-1.6
Resolution No. XXXX

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Menlo Park City CouncilMarch 1, 2022

Menlo Park City Council
March 1, 2022