Illustrative
2022 Act 2023 Fcst 2024 Bud 2025 2026 2027 2028
Revenue
Property taxes: Secured $ 19,572,790 $ 20,681,996 $ 21,871,211 $ 23,128,805 $ 24,458,712 $ 25,865,088 $ 27,352,330 Property taxes: VLF 5,265,733 4,546,957 4,808,407 5,084,890 5,377,272 5,686,465 6,013,436 Excess ERAF 4,410,741 4,178,538 4,178,538 4,178,538 4,178,538 4,178,538 4,178,538 RPTTF 1,816,169 2,510,372 2,510,372 2,510,372 2,510,372 2,510,372 2,510,372 Property taxes: Other 1,664,790 1,753,738 1,854,578 1,961,217 2,073,987 2,193,241 2,319,352 Sales Taxes 6,534,862 6,621,444 6,886,302 7,161,754 7,448,224 7,746,153 8,055,999 TOT 9,404,440 10,000,000 10,500,000 11,025,000 11,576,250 12,155,063 12,762,816 Utility User Tax 1,562,407 1,647,858 ‐ ‐ ‐ ‐ ‐
Licenses & Permits 5,987,374 5,190,231 5,397,840 5,613,754 5,838,304 6,071,836 6,314,710 Fines, Rental, Govt, Other 3,799,563 4,309,327 5,468,607 5,632,665 5,801,645 5,975,694 6,154,965 Charges for Services 4,911,158 6,017,167 6,137,511 6,260,261 6,385,466 6,513,175 6,643,439 Interest Income 1,430,530 1,244,640 1,244,640 1,244,640 1,244,640 1,244,640 1,244,640 Transfers 875,508 7,727,531 4,300,230 5,582,400 1,582,400 1,582,400 1,582,400 Total revenue 67,236,066 76,429,799 75,158,235 79,384,296 78,475,808 81,722,664 85,132,997 Expense
Salaries and Wages 22,187,749 26,475,697 30,818,039 32,041,161 33,313,207 34,636,136 36,011,981 Salaries Temporary 1,304,040 1,733,320 1,733,320 1,733,320 1,733,320 1,733,320 1,733,320 Salaries Overtime 1,508,502 1,778,882 1,778,882 1,778,882 1,778,882 1,778,882 1,778,882 Benefits ‐ PERS 7,007,864 6,018,601 10,244,326 10,227,078 9,720,391 9,599,252 9,362,730 Benefits ‐ Additional UAL 962,291 962,328 962,328 962,328 962,328 962,328 962,328 Benefits ‐ Non PERS 6,683,806 6,168,277 6,353,325 6,543,925 6,740,243 6,942,450 7,150,723 Vacancy factor ‐ (3,372,208) (3,891,767) (3,996,502) (4,068,628) (4,173,928) (4,274,997) Operating Expenses 7,039,721 11,181,411 11,516,853 11,862,359 12,218,230 12,584,777 12,962,320 Services 8,277,178 10,931,178 11,259,113 11,596,887 11,944,793 12,303,137 12,672,231 Repairs & Maintenance 1,060,987 1,042,796 1,074,080 1,106,302 1,139,491 1,173,676 1,208,886 Utilities, Rentals 1,758,532 1,877,373 1,933,694 1,991,705 2,051,456 2,113,000 2,176,390 Fixed Assets, Special Project 606,442 1,576,981 594,291 612,120 630,483 649,398 668,880 Transfers 12,265,074 8,831,190 3,675,800 3,770,045 3,867,117 3,967,102 4,070,086 Total expense 70,662,186 75,205,826 78,052,286 80,229,609 82,031,315 84,269,529 86,483,761 Surplus/(Deficit) (3,426,121) $ $ 1,223,973 $ (2,894,051) $ (845,314) $ (3,555,506) $ (2,546,865) $ (1,350,764) Audited Forecast
Fund Balance 34,232,360 35,456,333 32,562,282 31,716,968 28,161,462 25,614,596 24,263,832 Reserves Breakdown:
Non‐spendable prepaids 446,047 446,047 446,047 446,047 446,047 446,047 446,047 Project related, encumb 1,540,643 540,643 540,643 540,643 540,643 540,643 540,643 Strategic pension funding 3,250,860 2,288,492 1,326,164 363,836 ‐ ‐ ‐ Utility User Tax Refund ‐ 3,741,445 ‐ ‐ ‐ ‐ ‐ 2028
Emergency (Policy: 15‐20%) 12,064,534 12,064,534 11,707,843 12,034,441 12,304,697 12,640,429 12,972,564 15% Economic (Policy: 20‐25%) 16,000,000 16,166,617 15,610,457 16,045,922 14,620,075 11,737,477 10,054,578 12% Unassigned 930,276 208,555 2,931,128 2,286,079 250,000 250,000 250,000 Attachment A: City of Menlo Park
General Fund 5 Year Forecast (FY 2022‐23 thru 2028): Revenue & Expense Statement
Page K-1.6
Attachment A: City of Menlo Park
General Fund 5 Year Forecast (FY 2022‐23 thru 2028): Emergency & Economic Reserves ‐
3,000,0006,000,0009,000,000
12,000,00015,000,000
2022 Act 2023 Fcst 2024 2025 2026 2027 2028
Emergency contingency Policy Level (15% min)
General Fund: Emergency Contingency Reserve
‐
4,000,0008,000,000
12,000,00016,000,00020,000,000
2022 Act 2023 Fcst 2024 2025 2026 2027 2028
Economic stabilization Policy Level (20% min)
General Fund: Economic Stabilization Reserve
Page K-1.7
FISCAL YEAR 2023-24 BUDGET PRINCIPLES &
GENERAL FUND 5-YEAR FORECASTApril 25, 2023
K1-PRESENTATION
AGENDA
Budget Principles 5-Year Forecast Purpose Key Economic Issues General Fund 5-Year Forecast – Revenue assumptions– Expense assumptions– General Fund projects – Reserve impacts City Council approval and direction
1. Promote the City’s long-term fiscal sustainability
2. Provide city services and infrastructure that contribute to quality of life in Menlo Park
3. Revenue sources and grant accountingBUDGET PRINCIPLES 3 Reflects adopted budgeting principles and assists the City Council with long-term strategic decisions for the City’s largest operating fund. Provides outlook for a sustainable General Fund over
the next five years.
Revenue and expenditure assumptions in the forecast
are based on current financial projections.
The model received input from a variety of sources,
including the executive team and expert consultants.
PURPOSE OF THE 5-YEAR GENERAL FUND FORECAST
4 General Fund revenues have started to recover from
pandemic impacts– Forecast is based upon current financial projections– Most revenues have recovered to pre-pandemic levels, except for Sales Tax
– Utility Users Tax (UUT) removed from forecast
Economic uncertaintyKEY ECONOMIC ISSUES
5 Revenue assumptions:
– Property Taxes: 5.8% growth (HdL)– Transient Occupancy Tax: 5% growth– Sales Tax: 4% growth (MuniServices)– Licenses & Permits: 4% growth– Other revenues: 3%– UUT removed from forecast Additional information:
– Transfers in include:
• Approximately $1M OPEB Trust
disbursement
• $3.7 million in ARPA funds *final
determination of uses pending City Council direction
6 REVENUE ASSUMPTIONS
Utility Users Tax
Charges for Service
Other
Sales Taxes
Licenses & Permits
Transient Occupancy Tax
Property Taxes
0.0% 2.0% 4.0% 6.0% 8.0%
Annual Projections for General Fund Revenue
(percent change)
Fiscal Year 2023-24 - Fiscal Year 2027-28
Expenditure assumptions:
– 250 total full-time equivalents (FTEs)
• Placeholder wage adjustments
*subject to labor negotiations
• 7.5% vacancy factor (equal to 19
FTEs) included in forecast
– 3% CPI inflation adjustment to
benefits, capital improvements, and operating expenses
– Note: Pension costs trend downward
in outer years. Approximately $1 million payment annually to reduce unfunded accrued liability (UAL) 7 EXPENDITURE ASSUMPTIONS
Other
Benefits - non PERS
Services
Operating Expenses
Utilities
Salaries and Wages
0.0% 2.0% 4.0% 6.0%
Annual Projections for General Fund Expenditures
(percent change)
Fiscal Year 2023-24 - Fiscal Year 2027-28
GENERAL FUND 5-YEAR FORECAST
8 The forecast projects General Fund revenues to be lower than expenses over the five‐year period. -
15,000,000 30,000,000 45,000,000 60,000,000 75,000,000 90,000,000 2022 Act 2023 Fcst 2024 2025 2026 2027 2028
General Fund: Revenue vs Expense
Revenues Expenses
Reserve Impacts
– Total reserve balance trends downward from $32.5 million to $24.2 million over the five-year period
– Emergency Contingency Reserve: Maintained at minimum
policy level of 15% of the adopted budget
– Economic Stabilization Reserve: Falls below minimum
policy level of 20% of the adopted budget after fiscal year 2024-25 – Unassigned Fund Balance: Decreases to $0.25 million for the last three years of the forecast to maintain necessary liquidity for cash flow GENERAL FUND 5-YEAR RESERVES
9 GENERAL FUND: EMERGENCY CONTINGENCY RESERVE
10 The Emergency Contingency Reserve was established by resolution in 2011 and updated in 2014 with a policy goal of maintain 15‐20% of the General Fund’s annual operating budget. Use of the reserve is limited to declared emergencies. The forecast maintains this reserve at the minimum policy level. -
3,000,000 6,000,000 9,000,000
12,000,000 15,000,000
2022 Act 2023 Fcst 2024 2025 2026 2027 2028
General Fund: Emergency Contingency Reserve
Emergency contingency Policy Level (15% min)
GENERAL FUND: ECONOMIC STABILIZATION RESERVE
11 The Economic Stabilization Reserve was established by resolution in 2011 and updated in 2014 with a policy goal of maintain 20‐25% of the General Fund’s annual operating budget. The reserve can be used for severe operational budget deficits or to mitigate effects from unforeseen changes in revenues and/or expenditures.
The forecast uses reserves to cover projected deficits and falls below the minimum policy level after Fiscal Year 2024‐25. Council may consider alternative strategies to structurally balance the budget over time. -
4,000,000 8,000,000
12,000,000 16,000,000 20,000,000
2022 Act 2023 Fcst 2024 2025 2026 2027 2028
General Fund: Economic Stabilization Reserve
Economic stabilization Policy Level (20% min)
Approve the fiscal year 2023-24 budget principles
Review the General Fund 5-Year forecast assumptionsCITY COUNCIL APPROVAL AND DIRECTION 12 THANK YOU
City Manager's Office
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov
STAFF REPORT
City Council
Meeting Date: 4/25/2023
Staff Report Number: 23-104-CC
Informational Item: City Council agenda topics: May 9 – May 23 Recommendation
The purpose of this informational item is to provide the City Council and members of the public access to the anticipated agenda items that will be presented to the City Council. The mayor and city manager set the City Council agenda so there is no action required of the City Council as a result of this informational item.
Policy Issues
In accordance with the City Council procedures manual, the mayor and city manager set the agenda for City Council meetings.
Analysis
In an effort to provide greater access to the City Council’s future agenda items, staff has compiled a listing of anticipated agenda items, Attachment A, through May 23. The topics are arranged by department to help identify the work group most impacted by the agenda item.
Specific dates are not provided in the attachment due to a number of factors that influence the City Council agenda preparation process. In their agenda management, the mayor and city manager strive to compile an agenda that is most responsive to the City Council’s adopted priorities and work plan while also balancing the business needs of the organization. Certain agenda items, such as appeals or State mandated reporting, must be scheduled by a certain date to ensure compliance. In addition, the meeting agendas are managed to allow the greatest opportunity for public input while also allowing the meeting to conclude around 11 p.m. Every effort is made to avoid scheduling two matters that may be contentious to allow the City Council sufficient time to fully discuss the matter before the City Council.
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. City Council agenda topics: May 9 – May 23
Report prepared by:
Judi A. Herren, Assistant to the City Manager/City Clerk AGENDA ITEM L-1 Page L-1.1
Through May 23, 2023
Tentative City Council Agenda
# Title Department Item type City Council action1 Award investment advisor contract ASD Consent Contract award or amend2 Quarterly investment report ASD Consent Receive and file3 Quarterly Personnel Activity Report ASD Informational Receive and file4 Closed session: Labor ASD, CA Closed Session No action5 Consider the Planning Commission's recommendation to amend the planned development permit at 700-800 El Camino Real CDD Public Hearing Approve, Adopt resolution6 Habitat for Humanity - Award of NOFA for Belle Haven home rehabilitation program CDD Consent Contract award or amend7 Authorize the Mayor to sign a letter on behalf of the City Council to PG&E regarding recent extended power outages CMO Consent Approve 8 Authorize the Mayor to sign a letter on behalf of the City Council to SM County re: Flood School Flood Park CMO Consent Approve 9 First read and intro Zero Emission Landscaping Equipment (ZELE) ordinance CMO Regular First read/intro ordinance10 Goal and priority setting follow-up/final report CMO Regular Receive and file11 First read and intro Streetaries outdoor dining ordinance CMO Regular First read/intro ordinance12 Advisory Body training and recognition event CMO Presentation No action13 Presentation: San Mateo County Mosquito and Vector Control District annual update CMO Presentation No action14 Proclamation: Gun Violence Awareness Day CMO Proclamation No action15 Proclamation: Jewish American Heritage Month CMO Proclamation No action16 Proclamation: May 2023 Mental Health Month CMO Proclamation No action17 Resolution approving the California Governor’s Office of Emergency Services Form 130 in order to pursue State financial assistance CMO Consent Adopt resolution 18 Transmittal of city attorney billing (Mar 2023) CMO Informational No action19 Update City Council Policy CC-23-004 Commissions/Committees Policies and Procedures, Roles and Responsibilities CMO Consent Adopt resolution 20 Appropriate funds related to and supporting the Menlo Park Community Campus project microgrid switchgear LCS Regular Approve 21 Aquatics operator agreement LCS Regular Contract award or amend22 Aquatics operator agreement update LCS Informational Info from staff23 Menlo Park Community Campus - Preliminary staffing, operations, and programming plan considerations LCS Informational No action 24 Menlo Park Youth Poetry Voices LCS Presentation No action25 Police Department AB 481 Annual Review and Ordinance Renewal PD Regular Receive and file, Adopt resolution26 Police department quarterly update – Q1 January 2023 - March 2023 PD Informational Receive and file27 Adopt a resolution supporting the C/CAG Southeast San Mateo County Community Based Transportation Plan PW Consent Adopt resolution28 Approval of Amendment #2 to the SFCJPA Members Agreement PW Consent Approve29 First read and intro to reduce the speed limits on Bay Road, Middle Avenue, Olive Street, Ravenswood Avenue, Santa Cruz Avenue and Van Buren Road ordinance PW Regular First read/intro ordinance ASD-Administrative Services
CMO- City Manager's Office
CDD-Community Development
LCS-Library and Community Services
PD-Police
PW-Public Works
ATTACHMENT A
Page L-1.2
Through May 23, 2023
Tentative City Council Agenda
# Title Department Item type City Council action30 Presentation: SamTrans new microtransit service PW Presentation No action31 Proclamation: Recognizing May 2023 as Bike Month PW Proclamation No action32 Proclamation: Recognizing Public Works Week PW Proclamation No action33 Provide an update on the landscaping phase of the Willow-U.S. 101 interchange project PW Informational Info from staff34 Provide direction on the Ravenswood Bike Lane Pilot PW Study Session Direction to staff 35 Provide update on quick build project at Menlo Ave/University Dr intersection PW Informational No action 36 Rescind drought surcharge PW Regular Adopt resolution 37 Review and provide feedback on the draft Capital Improvement Program PW Study Session Direction to staff 38 Update on Caltrans bridge rail replacement on the El Camino Real bridge over San Francisquito Creek PW Informational No action 39 First read and intro admin. citation ordinance Various Regular First read/intro ordinance ASD-Administrative Services
CMO- City Manager's Office
CDD-Community Development
LCS-Library and Community Services
PD-Police
Page L-1.3
PW-Public Works
City Manager's Office
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov
STAFF REPORT
City Council
Meeting Date: 4/25/2023
Staff Report Number: 23-105-CC
Informational Item: Transmittal of city attorney billing Recommendation
This is an informational item and does not require City Council action.
Policy Issues
In accordance with the City Council informational requests, this staff report transmits information to the public.
Background
On Feb. 23, 2021, the City Council approved an agreement with Burke Williams Sorenson, LLP (BWS) for city attorney services.
Analysis
As requested by the City Council, the city attorney has prepared monthly summaries of billing activity (costs/fees) for legal services that could be shared with the public. This staff report transmits the summary for the month of February 2023.
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. Billing summary – February 2023
Report prepared by:
Justin I.C. Murphy, City Manager
AGENDA ITEM L-2 Page L-2.1
FEBRUARY 2023 CITY LEGAL SERVICES - Burke,Williams & Sorensen, LLP Description Fees Costs Total Billed
GENERAL MUNICIPAL MATTERS $ 40,316.00 -$ $ 40,316.00
REAL ESTATE, COMPLEX HOUSING, CEQA, NEPA $ 9,708.50 $ 24.75 $ 9,733.25 HOUSING ELEMENT $ 1,581.00 -$ $ 1,581.00
CONSTRUCTION AND COMPLEX PUBLIC WORKS $ 2,418.00 -$ $ 2,418.00 MENLO PORTAL $ 288.00 -$ $ 288.00
123 INDEPENDENCE $ 5,424.00 -$ $ 5,424.00
WILLOW VILLAGE $ 1,436.00 -$ $ 1,436.00
1350 ADAMS COURT $ 3,168.00 -$ $ 3,168.00
162-164 JEFFERSON $ 144.00 -$ $ 144.00
1105-1165 O'BRIEN DRIVE $ 11,184.00 -$ $ 11,184.00
BOHANNON DEVELOPMENT $ 8,208.00 $ 28.98 $ 8,236.98
FEES $ 11,501.00 -$ $ 11,501.00
CODE ENFORCEMENT/ PITCHESS / NUISANCE PR $ 1,453.00 -$ $ 1,453.00 SRI CAMPUS $ 5,184.00 -$ $ 5,184.00
MPCC PG&E EMINENT DOMAIN $ 713.00 -$ $ 713.00
1005 O'BRIEN $ 1,392.00 -$ $ 1,392.00
UUT CLAIM/LITIGATION $ 19,960.50 $ 914.83 $ 20,875.33
PUBLIC RECORDS ACT $ 8,543.00 -$ $ 8,543.00
CITY COUNCIL $ 1,566.00 -$ $ 1,566.00
980-1030 O'BRIEN $ 344.00 -$ $ 344.00
3705 HAVEN $ 1,392.00 -$ $ 1,392.00
KUNZE DOG LAWSUIT $ 5,983.50 -$ $ 5,983.50
CITY LEGAL EXPENSES PAID BY CITY $ 104,971.08
CITY LEGAL EXPENSES PAID BY DEVELOPERS $ 37,904.98
TOTAL $ 142,876.06
ATTACHMENT A Page L-2.2
Community Development
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov
STAFF REPORT
City Council
Meeting Date: 4/25/2023
Staff Report Number: 23-106-CC
Informational Item: Update on City’s Housing Element Update project status and next steps
Recommendation
The purpose of this informational item is to provide the City Council and members of the public an update on the April 7 letter (Attachment A) from the State Department of Housing and Community Development (HCD) regarding the City’s adopted 2023 to 2031 Housing Element, and a tentative schedule (Attachment B) for next steps in the Housing Element Update project process. This is an informational item and does not require City Council action.
Policy Issues
State housing law requires that jurisdictions throughout California adequately plan to meet the housing needs of everyone within the community and future residents by regularly updating the jurisdiction’s General Plan Housing Element. The Regional Housing Needs Allocation (RHNA) identifies the specific number of housing units at each income level category that a jurisdiction must plan for from 2023 to 2031 to comply with State mandates. Additionally, the Affirmatively Furthering Fair Housing (AFFH) Act requires that all local public agencies facilitate deliberate action to explicitly address, combat, and relieve disparities resulting from past patterns of segregation to foster more inclusive communities.
As part of the Housing Element Update project, the City is also updating its Safety Element and preparing its first Environmental Justice Element. The components of the Housing Element Update consider the interrelation between a number of land use, housing, and environmental factors and policies.
Background
The Housing Element Update has been an ongoing City Council priority, and the City began its efforts to update the Housing Element and Safety Element, and prepare a new Environmental Justice Element in early 2021. The City undertook an extensive process of planning, public engagement and coordination with community members, stakeholders, City decision makers, and other governmental agencies to develop the 2023 to 2031 Housing Element. The Housing Element was developed to meet the City’s assigned RHNA of 2,946 net new housing units across all income levels over an eight-year period and to create a foundation for the City’s policies related to housing. In an effort to exceed the State’s requirements, the Housing Element included a wide range of housing-related programs and incorporated 30% more net new units than required to provide ample opportunities for new housing development primarily throughout the community in City Council Districts 2 through 5. The City Council adopted the Housing Element Jan. 31 (Attachment C) and submitted it to HCD for review Feb. 8.
On Dec. 12, 2022, the City released a draft Environmental Justice Element (Attachment D) and Safety Element (Attachment E). The purpose of the Environmental Justice Element is to identify and address public health risks and environmental justice concerns, as well as foster the well-being of Menlo Park AGENDA ITEM L-3
Staff Report #: 23-106-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov residents living in disadvantaged/underserved communities. The purpose of the Safety Element is to identify and appraise risks in the community and provide high-level strategies for mitigating risks and ensuring the wellness of the community, city services and infrastructure. Since the previous Safety Element was adopted in 2013, State law now requires safety elements to include climate change vulnerability and adaptation, and increased attention to wildfire and evacuation routes. The update to the Safety Element focuses on these topics.
On Feb. 9 and Feb. 10 the City held community meetings at the Belle Haven Branch Library to present the draft Environmental Justice and Safety Elements. The community meetings provided an overview of each element; revisited findings from community input to date; reviewed and discussed goals, policies and programs; and provided a forum for sharing and receiving feedback on the draft elements.
Analysis
On April 7 the City received a letter from HCD (Attachment A) acknowledging the City’s Housing Element addresses many statutory requirements, but requesting additional changes to the adopted Housing Element. Among the topics in the letter are requests for additional analysis of housing needs, resources and constraints; additional information to support the inclusion of sites in the inventory; and further evaluation of governmental constraints on housing development in the city. Staff believes that the majority of the requested changes are for additional narrative and data to support the existing policies in the adopted Housing Element, and not requests to substantially alter the adopted programs and policy aims of the document.
Next steps
As outlined in Attachment B, staff has divided the remaining work to complete the Housing Element Update project into four major tasks:
1. Revise the adopted Housing Element, where appropriate, in response to the April 7 HCD letter and resubmit the document for HCD certification;
2. Prepare modifications to the El Camino Real/Downtown Specific Plan for City Council adoption to complete Housing Element program H4.L;
3. Prepare modifications to the city’s commercial zoning districts, R-3 zoning district and Affordable Housing Overlay (AHO), and zoning map for City Council adoption to complete Housing Element programs H4.D, H4.I, H4.J, H4.K, and H4.T; and
4. Continue refinement of the draft Environmental Justice and Safety Elements based on additional community engagement and feedback, and prepare for City Council adoption.
The timing and major components of these four work tasks are briefly described below and would occur through the remainder of 2023.
For Task 1, revising the adopted Housing Element, staff intends to prepare the bulk of changes to the document between April and June, seeking opportunities to engage with HCD and interested community stakeholders during the process. Before resubmitting the document for HCD review, it is anticipated that the City Council would review the draft changes at a meeting in mid-June to provide feedback on the revisions and guidance on items that may affect City policy. Following a required seven-day public review period and 60-day HCD review period, it is anticipated that HCD would provide a response on the revisions by late August 2023. Assuming tentative certification of the Housing Element following HCD review, the Planning and Housing Commissions would make a recommendation and the City Council would tentatively meet in September 2023 to consider re-adoption of the Housing Element.
Staff Report #: 23-106-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Task 2, changes to the El Camino Real/Downtown Specific Plan to increase density and other related development regulations, would be prepared during the spring months, and a Planning Commission study session would be held on the draft changes in June 2023, followed by a City Council study session in July 2023. Based on the study session guidance, changes to the specific plan would be finalized between August and October 2023, with a City Council hearing in late October 2023 to consider adoption of the changes, simultaneous with the work in Task 3 below.
Task 3, changes to commercial zoning districts, the R-3 district and AHO, and associated General Plan amendments would be prepared during the summer months, and Planning Commission and City Council study sessions would be held on the draft changes in August 2023. Based on study session guidance, changes to the zoning ordinance and zoning map would be finalized between September and October 2023, with a City Council hearing in October 2023 to consider adoption of the changes.
Task 4, finalizing the Environmental Justice and Safety Elements, would occur concurrently with Tasks 1, 2 and 3 above. In June 2023, a potential joint City Council and Planning Commission study session would be held to give an overview of the concepts of the elements and the outreach and feedback, and to discuss the approach for the remainder of the project. Refinement of the draft documents and additional community engagement would occur between June and September 2023, with a second potential joint City Council and Planning Commission study session in September 2023 to review development of the draft documents and the results of the community engagement process. If the documents receive satisfactory feedback during the tentative joint study session, a Planning Commission recommendation and City Council consideration of adoption of the General Plan elements would take place in November and December 2023.
It should be noted that dates and actions described above are tentative and subject to the availability of key parties (HCD staff, community stakeholders, Commissions and the City Council, etc.), scheduling of meetings, and time needed to address any unforeseen challenges that could arise during each of the tasks.
One significant factor that could affect the timing of the tasks described above is any additional environmental review that may be necessary to study increased densities beyond those evaluated in the certified subsequent environmental impact report (SEIR) for the project. Staff is working closely with the project environmental consultant to evaluate the potential timing of any necessary modifications to the SEIR, and would integrate environmental work into the project schedule so that the major tasks can be completed as early as possible and no later than Jan. 31, 2024.
Impact on City Resources
As part of the fiscal year 2020-21 budget, the City Council appropriated $1.5 million from the general fund to support the Housing Element Update (including preparation of the subsequent environmental impact report), which is a City Council priority. On March 14 the City Council approved an amendment to the professional services agreement with M-Group, the City’s Housing Element Update project consultant, in the amount of $75,414, for an overall contract total of $1,547,466.
Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines Sections 15378 and 15061(b)(3) as it will not result in any direct or indirect physical change in the environment. The City Council adopted Resolution No. 6808 and certified the SEIR for the Housing Element Update Jan. 31.
Staff Report #: 23-106-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov 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. Hyperlink – April 7 letter from State Department of Housing and Community Development:
menlopark.gov/files/sharedassets/public/community-development/documents/projects/housing-elementupdate/20230407-hcd-letter-menlo-park.pdf B. Tentative Housing Element Update project schedule through remainder of 2023 C. Hyperlink – Adopted 2023 to 2031 General Plan Housing Element:
menlopark.gov/files/sharedassets/public/community-development/documents/projects/housing-elementupdate/city-of-menlo-park-2023-2031-housing-element.pdf D. Hyperlink – Draft General Plan Environmental Justice Element:
menlopark.gov/files/sharedassets/public/community-development/documents/projects/housing-elementupdate/environmental-justice-element-20221212-public-review-draft.pdf E. Hyperlink – Draft General Plan Safety Element: menlopark.gov/files/sharedassets/public/communitydevelopment/documents/projects/housing-element-update/safety-element-20221212-public-reviewdraft.pdf Report prepared by:
Tom Smith, Principal Planner
Report reviewed by:
Mary Wagner, Assistant City Attorney
Deanna Chow, Assistant Community Development Director
Task Tentative Timing
Task 1: Revise Adopted Housing Element for HCD Certification
1.1 Receive HCD comments on adopted Housing Element April 10, 20231.2 City Council meeting: Info item to describe Housing Element status and next steps April 25, 2023
1.3 Prepare revisions to Housing Element April to Early June 20231.4 City Council meeting: Review revisions to Housing Element prior to HCD submittal Mid-June 2023
1.5 7-day public review period Late June 20231.6 Submit revised Housing Element to HCD; 60-day review Late June 20231.7 End of HCD review period Late August 20231.8 Joint Planning Commission/Housing Commission meeting: Resolution recommending Housing Element amendments Early September 2023
1.9 City Council meeting: Resolution adopting revised Housing Element Mid-September 2023 Task 2: Study El Camino Real/Downtown Specific Plan Changes
2.1 Draft proposed changes April to Mid-June 2023
2.2 Planning Commission meeting: Specific Plan update study session June 2023
2.3 City Council meeting: Specific Plan update study session July 2023
2.4 Prepare final Specific Plan and general plan changes based on study session guidance August to October 20232.5 City Council meeting: Ordinance introducing Specific Plan changes Late October 20232.6 City Council meeting: Waive second reading and adopt Specific Plan updates November 2023 Task 3: Study Commercial Districts, R-3, and Affordable Housing Overlay Zoning Ordinance and Zoning Map Changes
3.1 Draft proposed changes Mid-June to August 2023
3.2 Planning Commission meeting: Zoning ordinance update study session (Commercial districts, R-3 and AHO) Mid-August 2023
3.3 City Council meeting: Zoning ordinance update study session (Commercial districts, R-3 and AHO) Late August 2023
3.4 Prepare final zoning ordinance and general plan changes based on study session guidance September to October 20233.5 City Council meeting: Ordinance introducing zoning changes Late October 20233.6 City Council meeting: Waive second reading and adopt zoning updates November 2023 Task 4: Finalize Environmental Justice and Safety Elements
4.1 Joint City Council/Planning Commission meeting: Intro to EJ/Safety and process preview (Study Session #1) Early June 2023
4.2 Refinement of draft documents June to Mid-August 20234.3 Community engagement on revised draft August to September 20234.4 Joint City Council/Planning Commission meeting: Draft EJ/Safety Elements outreach summary and feedback (SS #2) September 20234.5 Planning Commission meeting: Recommendation to City Council Early November 2023
4.6 City Council meeting: Resolution adopting EJ/Safety Elements Early December 2023 Proposed Housing Element Update Project Schedule through December 2023
ATTACHMENT
B
4/10/2023 5/30/2023 7/19/2023 9/7/2023 10/27/2023
Task 1
1.11.21.31.41.51.61.71.81.9 Task 2
2.12.22.32.42.52.6 Task 3
3.13.23.33.43.53.6 Task 4
4.14.24.34.44.54.6