CITY OF PALO ALTO CONTRACT NO. C25191000
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND GRASSROOTS ECOLOGY
This Agreement for Professional Services (this “Agreement”) is entered into as of the 17th day of June, 2024 (the “Effective Date”) , by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and GRASSROOTS ECOLOGY , a California Nonprofit Corporation , located at 3921 East Bayshore Road, Palo alto, CA 94303 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:
RECITALS
A. CITY intends to maintain the Pearson-Arastradero Preserve (the “Project”) and desires to engage a consultant to provide land stew ardship services at Pearson-Arastradero Preserve in connection with the Project (the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The term of this Agreement shall be from July 1, 2024 through June 30, 2029, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
A renewal option for a period or periods of up to 5 years (from July 1, 2029 through June 30, 2034, is available as mutually agreed, to be executed in accordance with Section 29.4 of this Agreement.
Absent a mutually extended agreement, the City reserves the right to extend this Agreement for up to six months. During such six-month extension period, the parties may agree to a renewal option as provided for herein.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance DocuSign Envelope ID: 8A1E6473-98EC-438B-871C-250B337E2211 Item 7
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of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably p rompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION . The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Six Hundred Twelve Thousand Twenty-Seven Dollars ($612,027). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including , if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 1 3 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, DocuSign Envelope ID: 8A1E6473-98EC-438B-871C-250B337E2211 Item 7
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including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT . The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder wit hout the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.
SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.
SECTION 13. PROJECT MANAGEMENT . CONSULTANT will assign Claire Gist, DocuSign Envelope ID: 8A1E6473-98EC-438B-871C-250B337E2211 Item 7
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Telephone: (503) 939-4741, Email:[email protected] as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services.
If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’ s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.
CITY’s Project Manager is Michael Warner, Community ServiceDepartment, Open Space, Parks and Golf Division, 3300 Page Mill Road, Los Altos Hills, CA, zipcode: 94022, Telephone:(650) 329-2423. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 1 4. OWNERSHIP OF MATERIALS . All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arisi ng out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
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16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any om ission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in wr iting in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or parti al exercise of any right or remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and a ll contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss DocuSign Envelope ID: 8A1E6473-98EC-438B-871C-250B337E2211 Item 7
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caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in who le or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; pr ovided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement.
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CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero DocuSign Envelope ID: 8A1E6473-98EC-438B-871C-250B337E2211 Item 7
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Waste best practices include , first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the Cit y, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regardin g the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Co de, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations.
CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of R egulations Section 16000 et seq., as amended from time to time except for work exempted by Section 1720.4 of the California Labor Code relating to volunteers. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations DocuSign Envelope ID: 8A1E6473-98EC-438B-871C-250B337E2211 Item 7
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(“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Secti ons 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815 , and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.) , as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E , entitled “ DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance , including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR.
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply , as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreeme nt and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, d irectly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this DocuSign Envelope ID: 8A1E6473-98EC-438B-871C-250B337E2211 Item 7
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Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentia lity obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requ irements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amo unt equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal DocuSign Envelope ID: 8A1E6473-98EC-438B-871C-250B337E2211 Item 7
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Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
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CONTRACT No. C25191000 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
_______________________
City Attorney or designee
GRASSROOTS ECOLOGY
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
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Alex Von Feldt
Fran Callan
Business Director
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services.
Scope of Services
As part of the Pearson-Arastradero Management Plan, the Pearson-Arastradero Preserve Steward is tasked with habitat restoration, removal and control of non-native, invasive weeds, trail maintenance and repair, educational activities, research, and riparian habitat management, and recommending an annual habitat restoration plan. Essential is overseeing community engagement and habitat restoration activities at the Preserve. The Steward is expected to have knowledge of and skills in the latest habitat restoration techniques. The Steward is responsible for recruiting for, organizing, and managing volunteer workdays to accomplish the habitat restoration goals. The Steward will develop and manage an afterschool program for local youth that combines environmental education with hands-on opportunities to improve the habitat. The stewardship program is to seek volunteers from a variety of age groups and demographic backgrounds and the Steward is to incorporate best practices in the areas of diversity, equity, and inclusion to create a rich volunteer experience.
The Steward is also expected to raise funds from outside sources in addition to the City’s contribution to achieve the services below. Interested consultants are to include in their proposal their plan to raise funds.
The Steward is required to be a non-profit 501(c)3 organization focused on ecological and environmental protection.
The Steward is required to LiveScan employees.
CONSULTANT shall provide the following services
• Coordinate stewardship activities on the Preserve
• Under the direction of the City, perform habitat restoration and removal and/or control of non-native, invasive weeds.
• Under the direction of the City, provide and staff educational programs to educate the public about the preserve habitat restoration activities including weed management and habitat enhancement.
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• Under the direction of the City, mobilize volunteers for preserve projects and programs. • Steward may perform other services related to the preservation, protection, and enhancement of the Preserve, as approved by the City.
Work Plan:
Community Outreach
Volunteer outreach: Outreach to and coordinate with schools and other partner organizations through website, emails, newsletter, and presentations.
Volunteer engagement: Host public volunteer workdays with annual targets of:
● 20 workday events annually
● 1,200 volunteer hours annually
Manage registration, insurance waivers, and safety for all volunteers.
Provide educational content at volunteer workdays so that volunteers have an enriching experience.
Youth Stewards Program: Develop and run an afterschool program for youth to participate in habitat restoration and stewardship activities while developing a meaningful relationship with the preserve.
Develop site specific curriculum that includes environmental science topics and covers environmental justice themes.
Annual targets include:
● 10-16 events annually
Interpretive events: Provide 4 annual public events throughout the year that cover a variety of environmental and educational topics.
Interpretive signage: Maintain and update signage in the Gateway Facility as needed.
Preserve visitor engagement: Be a presence at the Preserve and provide information and answer questions about restoration activities to preserve visitors.
Networking/Partnerships: Attend convenings such as Weed Management Area meetings and/or other appropriate conferences as time permits to connect with other local restoration experts.
Native Plant Revegetation and Maintenance
Install native plants: Annually, propagate locally native watershed-specific plants according to the latest phytosanitary protocols.
Develop an annual planting list based on specific site requirements.
Install 350+ native plants annually in existing restoration zones including:
● The Gateway Facility area
● Mayfly Creek area
● Arastradero Creek riparian corridor
Maintain native planting areas: Annually, maintain new and historic planting areas through regular weeding, watering, mulching, and pruning, including:
● The Gateway Facility area
● Mayfly Creek area
● Arastradero Creek riparian corridor
Monitor and maintain native trees: Annually, implement tree monitoring and maintenance plan:
● Monitor and maintain trees that were protected as part of previous projects, including City of Palo Alto golf course mitigation, San Francisquito Creek JPA mitigation and the Re-oaking Silicon Valley project.
● Monitor for health and maintenance needs then remove any protection deemed unneeded/overgrown.
Riparian enhancement of Mayfly and Arastradero Creeks, annually:
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● Infill willow stakes where appropriate along the creek. ● Maintain willow cuttings through weeding and watering. ● Remove target invasive species along riparian corridors. ● Install native plants along riparian corridors when appropriate.
Invasive Plant Management, annually and subject to change based on discussion with City’s contract manager and/or Supervising Ranger:
Yellow starthistle:
• Map yellow starthistle preserve wide on Calflora. Create a mowing recommendation for Rangers to manage large populations. Hand pull or weed whip small populations and resprouts within mow areas with volunteers.
Stinkwort:
• Handpull all known stinkwort within the preserve and map populations on Calflora.
Medusahead:
• Map medusahead populations preserve wide on Calflora. Weed whip as much of the population as possible. The goal is to prevent dense populations from spreading deeper into the preserve.
Italian thistle:
• While Italian thistle is prolific throughout the preserve, regular removal and maintenance will be prioritized within active restoration areas.
Other species:
• Poison hemlock, mustard species, purple starthistle, teasel, French broom, Harding grass, bull thistle, sow thistle, and milk thistle will be monitored for and removed when feasible.
Poison hemlock, Purple starthistle and French broom are mapped using Calflora.
Management of these species will be prioritized within active restoration areas.
Project Management:
Technical expertise: Provide technical expertise and collaboration to other City of Palo Alto departments as requested.
Manage project: Oversee completion of work plan deliverables and quality of project delivery.
Mid-year report: Annually by City fiscal year, create and provide progress reports to the Rangers regarding previous and scheduled events and activities.
Year-end report: Annually by City fiscal year, create and submit to Rangers an annual report to summarize annual activities and accomplishments.
Annual work plan: Annually by City fiscal year, create and submit to Rangers an annual work plan for the preserve activities scheduled for the upcoming year.
Additional Projects:
Wildlife Cameras: Maintain and monitor wildlife cameras on a quarterly basis.
Habitat structures: Monitor, maintain, and install bird boxes Trash removal: Remove unused t-posts, cages, fencing, and other found trash throughout the preserve.
Teasel project: Secure additional funds from outside 3rd party sources to remove 1 acre of teasel along 400 linear feet of Arastradero Creek at Gate A, replace with appropriate native plants and maintain the site.
Other projects: Other projects to be determined and as needed, mutually agreed upon by contracted Steward and City’s contract manager and/or Supervising Ranger.
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Days/Weeks (as specified below)
from NTP
1. Completion of Community Outreach Every 52 weeks
2. Completion of Native Plant Revegetation
and Maintenance
Every 52 weeks
3. Completion of Invasive Plant
Management
Every 52 weeks
4. Completion of Project Management Every 52 weeks
5. Completion of Additional Projects As needed.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)
The schedule o f performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below , provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services , any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK
NOT TO
EXCEED
AMOUNT
July 1, 2024 –
June 30, 2025
NOT TO
EXCEED
AMOUNT
July 1, 2025 –
June 30, 2026
NOT TO
EXCEED
AMOUNT
July 1, 2026 –
June 30, 2027
NOT TO
EXCEED
AMOUNT
July 1, 2027 –
June 30, 2028
NOT TO
EXCEED
AMOUNT
July 1, 2028 –
June 30, 2029
Task 1
(Coordinate stewardship
activities on the Preserve)
$13,000 $13,390 $13,792 $14,205 $14,632
Task 2
(Habitat Restoration and
removal or control of non-
native weeds)
$33,000 $33,990 $35,010 $36,060 $37,142
Task 3
(Provide public education
programs of Preserve
restoration efforts)
$15,000 $15,450 $15,914 $16,391 $16,883
Task 4
(mobilize
volunteers for preserve
projects)
$34,375 $35,406 $36,468 $37,562 $38,689
Task 5
(Provide proposed annual
work plan)
$2,600 $2,678 $2,758 $2.841 $2,926
Task 6 $12,500 $12,875 $13,261 $13,659 $14,069
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(Additional tasks and
projects)
Sub-total for Services $110,475 $113,789 $117,203 $120,719 $124,341 Reimbursable Expenses (if
any) $5,000 $5,000 $5,000 $5,000 $5,000
Total for Services and
Reimbursable Expenses $115,475 $118,789 $122,203 $125,719 $129,841 Additional Services (if any,
per Section 4) $0 $0 $0 $0 $0
Maximum Total
Compensation $115,475 $118,789 $122,203 $125,719 $129,841
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses , such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified a s reimbursable under this section , will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: Five Thousand Dollars per year up to the not -to-exceed amount of:$25,000.00 (Twenty-Five Thousand Dollars).
A. Travel outside the San Francisco Bay Area, including transportation and meals , if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.
C. Plant material and equipment may be reimbursed at actual costs.
All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Hourly rates for key staff and per-event costs are listed below for Year 1 of the contract.
Rates may increase over the course of the 5-year contract at up to 5% per year.
Schedule of Rates
Co-Executive Director $70/hour
Nursery Director $70/hour
Project Manager $65/hour
Ecologist II $60/hour
Restoration Specialist $55/hour
Volunteer Workday $1,650/event
Youth Stewards Event $1,100/event
Naturalist Walk $1,100/event
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A -:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST
AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM
OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: [email protected]
III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL L IABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:
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EXHIBIT E
DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONSULTANT without proof that CONSULTANT and its listed subcontrac tors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONSULTANT and its listed subcontractors, if any, to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq ., as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26 (Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement.
CITY provides notice to CONSULTANT of the requirements of California L abor Code Section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 702 9.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”
This Project is subject to comp liance monitoring and enforcement by DIR. All contractors must be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also be registered with DIR. No contractor or subcontractor may be awarded a contract f or public work on a public works project unless registered with DIR. Additional information regarding public works and prevailing wage requirements is available on the DIR web site (see e.g. http://www.dir.ca.gov) as amended from time to time.
CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is required to post all job site notices prescribed by law or regulation.
CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461).
CITY requires CONSULTANT and it s listed subcontractors to comply with the requirements of Labor Code Section 1776, including but not limited to:
Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONSULTANT and its listed subcontractors, in connection with the Project.
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The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONSULTANT and its listed subcontractors, respectively.
At the request of CITY, acting by its Project Manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the CITY Project Manager within ten (10) days of receipt of CITY’s request.
CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll records to CITY’s Project Manager at the end of each week during the Project.
If the certified payroll records are not pro vided as required within the 10 -day period, then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT.
Inform CITY’s Project Manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to CITY’s Project Manager within five (5) business days of any change of location of those payroll records.
Eight (8) hours labor constitutes a legal day’s work. CONSULTANT shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours per week, at not less than one and one -half (1&1/2) times the basic rate of pay, as provided in Section 1815.
CONSULTANT shall secure the payment of workers’ compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file with the CITY a statutorily prescribed statement acknowledging its ob ligation to secure the payment of workers’ compensation to its employees before beginning work (Labor Code 1861).
CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)).
CONSULTANT shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 18, 2024
Report #:2404-2911
TITLE
Approval of a Memorandum of Understanding for a Countywide Food Recovery Program; CEQA Status – Exempt under CEQA Guidelines Section 15308
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute the Memorandum of Understanding between the County of Santa Clara, the cities of Campbell, Cupertino, Gilroy, Los Altos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, San José, Santa Clara, Sunnyvale, and Saratoga; the towns of Los Altos Hills and Los Gatos; and the City of Palo Alto for the ongoing management and operation of a countywide edible food recovery program and sharing of program costs.
EXECUTIVE SUMMARY
The Memorandum of Understanding (“MOU”) is for the ongoing management, operation and sharing of costs for a countywide edible food recovery program based on the number of edible food generators within each city. The MOU allows for consistent implementation within the county for generators and cities to meet California Senate Bill 1383 (SB 1383) requirements and complete annual reporting to the State.
BACKGROUND
SB 1383 took effect in 2016 with the goals of reducing disposal of organic waste in landfills, reducing greenhouse gas emissions, and addressing food insecurity. To avoid disposal of edible food, in November 2020 the Department of Resources Recycling and Recovery (CalRecycle) developed regulations requiring jurisdictions to establish edible food recovery programs to recover the maximum amount of edible food that would otherwise be sent to landfills to instead feed people in need. The state goal is to reduce edible food going to landfills by 20%.
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organizations or services that would collect or accept self-hauled edible food. The following commercial edible food generators are in Tier 1, as defined by CalRecycle:
•wholesale food vendors
•food service providers and distributors
•grocery stores over 10,000 square feet
•supermarkets
Palo Alto currently has nine grocery stores and wholesale food vendors meeting these Tier 1 generator requirements.
Beginning January 1, 2024, the following "Tier 2" generators (listed below, as defined by CalRecycle) were required to donate their edible food:
•restaurants over 5,000 square feet
•hotels with 200 or more rooms and on-site food facilities •local education agencies with on-site food facilities
•large venues/events
•health facilities with at least 100 beds and on-site food facilities Palo Alto has 83 Tier 2 generators including 48 restaurants, 18 local education agencies, 10 campus/food service providers, 3 health facilities, 2 large venues, 1 hotel and 1 private school.
To allow for conformity and consistency for generators within the county to meet the SB 1383 requirements, an edible food recovery model ordinance was created and adopted by all the cities located within the county and participating in the County of Santa Clara Recycling and Waste Reduction Commission (RWRC) Technical Advisory Committee (TAC). The City Council approved Palo Alto’s Municipal Code Chapter 5.40 Edible Food Recovery Requirements on November 29, 2021.1 The ordinance was developed with flexible language that enabled subsequent decisions to be made on items that were not fully developed at the time the ordinance was established to be compliant with SB 1383’s timeline for adopting ordinances.
The flexibility allowed for details related to enforcement, funding, and agreements to be developed in collaboration with all cities in the county.
To take advantage of economies of scale and due to the cross-jurisdictional nature of food recovery operations, TAC on June 16, 2022 amended an existing agreement with Joint Venture Silicon Valley (JVSV) to develop and manage the Santa Clara County Food Recovery Program (Program).2 As a result, JVSV conducts the necessary outreach to the edible food generators, provides assistance, connects businesses with food recovery organizations, and gathers the 1 City Council. November 01,2021, Agenda Item #13, SR#13547, https://cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id.-13547-implementation-of-the-state-california-short-lived-climate-pollutant-senate- bill-1383-requirement.pdf
2 Santa Clara County Food Recovery Program, June 16, 2022, First Amendment To Agreement Joint Venture Silicon Valley – Contract Scope of Services – Santa Clara County Food Recovery Monitoring Program and Deliverables – 6.16.22 Item 8
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required data for reporting back to CalRecycle. The program is very successful and was showcased by CalRecycle as an example of how other regions in California might want to organize their programs. The costs of the program were shared based on the number of generators within each city.
To keep this successful Program operating, in 2022 the TAC evaluated multiple long-term funding mechanisms and organizational structure options within the county. The TAC determined that the current funding mechanism based on the number of generators operating within each jurisdiction, and the organizational structure in implementation under a one-year Memorandum of Understanding, is the most cost effective and efficient methodology for participating jurisdictions to jointly administer and fund the Program. In 2023, a one-year Memorandum of Understanding (MOU)3 with the cities of Campbell, Cupertino, Gilroy, Los Altos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, San José, Santa Clara, Sunnyvale, and Saratoga; the towns of Los Altos Hills and Los Gatos; and the County of Santa Clara was developed to fund the cost of the Program to satisfy SB 1383 requirements for a period of one year. The County of Santa Clara (County), as well as each city and town within the county, became responsible for paying a share of the Program under the MOU. In addition, the MOU iterates the County is the fiscal agent for TAC and the City of Morgan Hill is the administrator and contracting agent for TAC. Therefore, the County as the fiscal agent issued invoices to the jurisdictions for their committed amounts and collected funds that are redirected to the City of Morgan Hill in its capacity as the RWRC TAC administrator and contracting agent.
Palo Alto used existing Refuse Fund operating budget to fund the single year Program through the initial MOU, which is effective from July 1, 2023 to June 30, 2024, and covers the base and enhancement Program based on each jurisdiction’s contributions, calculated at $133 per generator (for base program costs) applied to the number of generators within the jurisdiction.
The enhancements include any activities identified by the Program that ensure efficient food recovery and prevention. Projects may include, but are not limited to, strategic capacity enhancements, and projects that promote the efficient recovery of surplus food or the prevention of surplus food.
The City’s Program cost (base and enhancements) was $17,054 in fiscal year 2024 based on the number of generators. The countywide base and enhancement program services performed by JVSV included the following deliverables:
•Create and coordinate a standardized edible food recovery program within the County •Review and update the lists of Tier 1 and Tier 2 generators •Provide requirements for large events within each jurisdiction •Provide information and data for inclusion in reports to CalRecycle 3 SCC 2023 Memorandum of Understanding,
Memorandum of Understanding Among Local Public Agencies in Santa Clara County For Food Recovery Program Costs
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•Retain records of inspections
•Communicate with the appropriate jurisdictional entity if noncompliance issues arise •Provide education and outreach to generators
•Coordinate with food recovery organizations to compile reports •Conduct inspections and monitor generators and food recovery organizations •Maintain the Santa Clara County Edible Food Recovery Program website and list of Food Recovery Organizations and their services
•Prepare an annual report on program activities
•Communicate food recovery statistics with the County’s Office of Sustainability •Issue small capacity grants to increase the capacity of food recovery organizations •Provide food waste prevention classes via webinar and in-person series for different sectors regulated under SB 1383 (e.g., restaurants, hospitals, schools, large events) to promote food waste prevention measures specific to each regulated sector, provide food recovery tips and best practices
ANALYSIS
The long-term MOU (Attachment A) is anticipated to go into effect on July 1, 2024. The MOU and its terms will remain in effect until the TAC terminates the agreement using the TAC Memorandum of Agreement’s organizational voting structure. The long-term MOU extends the commitment of participating jurisdictions to submit annual contributions to fund the mandated Program based on the number of generators in each jurisdiction. Jurisdictions may also use the long-term MOU to contribute additional optional funds for Program enhancements that will be considered and approved by the TAC annually as part of its annual workplan and budget process. For the City, no additional funding is being requested at this time for this countywide Program.
The MOU creates one uniform, standardized, and coordinated effort for the edible food generators. The countywide Program benefits all cities in the county, including Palo Alto, by alleviating the need for duplicative staff, cost analysis, capacity assessment, expenditures for infrastructure, labor, administration, and record keeping for the edible food recovery activities.
Each year, details about the Program are provided in an annual report containing pertinent information the City uses to demonstrate compliance with the CalRecycle SB 1383 reporting requirements.
Moving forward, staff will continue to coordinate efforts with TAC and the Program to be proactive with the generators, address complaints, and work with the Program to review and provide feedback on inspection protocol and triggers for generators. In addition, staff will be involved in compliance checks and any enforcement needed.
FISCAL/RESOURCE IMPACT
For Fiscal Year 2025, the City’s financial commitment is $26,243 for the countywide Program and for Fiscal Year 2026 it is estimated at $31,464. The overall Program biennial budget will not increase by more than ten percent of the prior year’s budget without prior approval by the Item 8
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RWRC during its annual work plan and budget approval process. These costs for the next two fiscal years and staff’s participation in RWRC TAC’s actions are included in the proposed FY 2025 Refuse Fund operating budget, subject to Council approval as part of the annual budget development process. No additional funding is being requested at this time for this countywide Program.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement included notifying the public at the monthly RWRC meetings, the TAC meetings, the Implementation Committee meetings as well as the various TAC subcommittee meetings. All meeting minutes are posted on the County Board of Supervisors and Boards and Commission webpage4. In addition, JVSV maintains the web site SCCFoodRecovery.org, conducts regular outreach to the edible food generators through mail, electronic communication, and webinars on best practices for preventing food waste and how to set up a food recovery program. They also help businesses connect with food recovery organizations.
Staff provides further outreach to Palo Alto’s food generators through utilities bill inserts, social media, direct mail, and Zero Waste newsletters.
ENVIRONMENTAL REVIEW
Council action on this item is exempt from review under the California Environmental Quality Act (CEQA) because the Countywide Food Recovery Program is an action by the City, as regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment.
ATTACHMENTS
Attachment A: Food Recovery Program RWRC MOU
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
4 TAC, RWRC, and Implementation Committee Meeting Minutes http://sccgov.iqm2.com/citizens/default.aspx
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1 MEMORANDUM OF UNDERSTANDING
AMONG LOCAL PUBLIC AGENCIES
IN SANTA CLARA COUNTY
FOR COUNTYWIDE FOOD RECOVERY PROGRAM
This Memorandum of Understanding (“MOU”) is entered into by and between the cities of Cupertino, a municipal corporation of the state of California; Gilroy, a municipal corporation of the state of California; Los Altos, a municipal corporation of the state of California; Milpitas, a municipal corporation of the state of California; Morgan Hill, a municipal corporation of the state of California; Mountain View, a municipal corporation of the state of California; Palo Alto, a municipal corporation of the state of California; San José, a municipal corporation of the state of California; Santa Clara, a municipal corporation of the state of California; Sunnyvale, a municipal corporation of the state of California; the West Valley Solid Waste Management Authority (on behalf of the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos); the Town of Los Altos Hills, a municipal corporation of the state of California; and the County of Santa Clara, a political subdivision of the State of California; collectively “Parties” or individually as a "Party."
RECITALS
A. The signatory Parties are also “PARTIES” to the Memorandum of Agreement (“MOA”) entered into on June 14, 2013 for the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee (“TAC”), which is a separate Committee created to assist the County of Santa Clara Recycling and Waste Reduction Commission (“RWRC” or “Commission”) that advances the interests of Party Jurisdictions by performing technical and policy review to inform parties and advise the Commission on solid waste management issues, and bring together varied expertise and viewpoints for planning and implementing the Commission approved annual workplan and budget. The MOA, which remains in effect, is attached hereto and incorporated herein by reference as Exhibit B.
B. California’s Short-Lived Climate Pollutant Reduction law (SB 1383, Lara, Chapter 395, Statutes of 2016) establishes methane reduction targets for California, including a target to increase recovery by 20 percent of currently disposed edible food for human consumption by January 1, 2025.
C. To meet the mandated statewide goal, SB 1383 requires each Jurisdiction in California to establish and monitor a robust food recovery program, which will strengthen the relationships between commercial edible food generators and food recovery organizations within their communities, requiring certain food businesses to send the maximum amount of edible food they would otherwise dispose to food recovery organizations and/or services.
D. The Parties have previously agreed to jointly administer and fund the cost of a countywide edible Food Recovery Program (the “Program”) through the Memorandum of Understanding Among Local Public Agencies in Santa Clara County for Food Recovery Program Costs entered into and covering the time period of July 1, 2023 to June 30, 2024 (“Former MOU”) to satisfy their respective obligations under SB 1383 and the corresponding regulations. The Former MOU is attached hereto as Exhibit C.
E. The Parties desire to execute this MOU to ensure ongoing operation of the countywide food recovery program to provide for their respective share of costs for the Program.
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2 F. The West Valley Solid Waste Management Authority (“Authority”) was established by the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos (collectively referred to as the “Member Agencies”), pursuant to the provisions of the Joint Exercise of Powers Act (Title 1, Division 7, Article1, Section 6500 et seq. of the California Government Code) to arrange for and manage the waste reduction, collection, reuse, disposal, recycling, and diversion of discarded materials originating in the participating municipalities; and in furtherance of that purpose, the Member Agencies and the Authority have entered into agreements authorizing the Authority to act as the representative of the Member Agencies in the Food Recovery Program.
NOW, THEREFORE, the Parties agree as follows:
SECTION 1. PURPOSE OF THE MOU
The purpose of this MOU is to establish a system of:
1) Ongoing management and operation of the Food Recovery Program. 2) Payment by the Parties for their share of the costs for implementation of the Program.
SECTION 2. EFFECTIVE DATE
This MOU shall be effective on July 1, 2024 (“Effective Date”), shall supersede the Former MOU, and shall automatically renew each year for all Parties, unless a Party withdraws, in accordance with Section 20 (Withdrawal From MOU) and subject to a Party’s annual appropriations of funds.
SECTION 3. DEFINITIONS
The original 2013 Memorandum of Agreement entered into between the parties (and as may be amended from time to time) defined in detail the duties of the TAC Administrator, Contracting Agent, and Fiscal Agent, and those definitions from the MOA shall apply to this MOU. For ease of reference, those definitions are summarized below.
3.1 The TAC Administrator provides administration and management services to the TAC and carries out the annual workplan.
3.2 The Contracting Agent executes contracts with outside contractors, including the Administrator and the Fiscal Agent that have been requested and approved by the Implementation Committee.
3.3 The Fiscal Agent serves as the treasurer of the countywide funds and is responsible for collecting the Solid Waste Planning Fee from all solid waste disposal facilities and non-disposal facilities located within Santa Clara County.
3.4 The Program Manager is the entity contracted by the Contracting Agent on behalf of the RWRC to implement the Santa Clara County Food Recovery Program.
Other terms used in this MOU that relate to the Food Recovery Program (e.g., including but not limited to the term “Jurisdictions”) are used as defined in SB 1383 and any implementing regulations, as may be amended from time to time.
SECTION 4. RESPONSIBILITIES OF THE TAC ADMINISTRATOR AND CONTRACTING AGENT
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3 5.1 The TAC Administrator will provide administration and management of the Program. These duties include overseeing the work of the Program, development of the biennial budget, and inclusion of the Program in the annual work plan and budget. The costs to perform these duties will be included in the annual work plan and budget.
5.2 Contracts executed by the Contracting Agent with the Program, TAC Administrator and Fiscal Agent will be based on the approved budget for the Program. The Contracting Agent will provide an invoicing system to pay the Program Manager, TAC Administrator, and Fiscal Agent. The Contracting Agent shall provide the TAC Administrator with the proposed costs to perform these duties. The signatory Parties to this MOU (except when acting in their authorized capacities as Contracting Agent, TAC Administrator, and Fiscal Agent) are not direct parties to the third-party contracts entered into by those agents.
SECTION 5. RESPONSIBILITIES OF THE FISCAL AGENT
The Fiscal Agent will collect and receive funds from the Parties for implementation of the Countywide Food Recovery Program. The Countywide Food Recovery Program Funds will be segregated from the Countywide Solid Waste Program Funds in separately numbered and coded accounts that are readily identifiable as those containing Countywide Food Recovery Program Funds or Countywide Solid Waste Program Funds. The Fiscal Agent shall not expend, use or transfer any funds except in accordance with the annual work plan and budget.
The Fiscal Agent shall provide the TAC Administrator with the proposed costs to perform these duties.
SECTION 6. RESPONSIBILITIES OF THE PROGRAM MANAGER
The Program Manager will implement the Santa Clara County Food Recovery Program as described in Exhibit A.
SECTION 7. RESPONSIBILITIES OF THE PARTIES
The Parties will share costs of implementing the Program as described in Section 9 and undertake the duties assumed by the Jurisdictions as described in Exhibit A.
SECTION 8. BIENNIAL BUDGET
The TAC Administrator will prepare a biennial (two-year) budget that encompasses costs for the Program and Program Manager, the TAC Administrator, the Contracting Agent/Administration, and the Fiscal Agent.
Approval of the biennial budget shall follow the annual work plan and budget process as specified in the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee MOA.
SECTION 9. FUNDING
9.1 The Parties agree to share costs of the Program based on the number of edible food generators, as defined by the California Code of Regulations (14 CCR Section 18982) operating in their Jurisdiction on an annual basis, according to the following formula: Party’s Annual Share = (Total Budgeted Cost for Year Item 8
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4 ÷ Total Number of Edible Food Generators Under MOU) x Number of Edible Food Generators in Party’s Jurisdiction.
The Parties agree to pay annually for the costs identified in the biennial budget and approved through the annual work plan and budget process as specified in the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee MOA.
9.2 The initial Program budget will be based on the Fiscal Year 2024 allocation including costs for the Fiscal Agent, totaling THREE HUNDRED AND TEN THOUSAND DOLLARS ($310,000). No costs for TAC Administrator or Contracting Agent are included in the initial Program budget. Should cost recovery for the TAC Administrator or Contracting Agent be required in the future, these will be proposed during the annual work plan and budget process.
9.3 The Parties acknowledge that the Program Manager will evaluate the costs per Jurisdiction annually based on the number of generators operating within each Jurisdiction. Based on this evaluation, a cost adjustment will be projected to the second year of the biennial budget (see Section 8 above). The overall Program budget will not increase by more than TEN PERCENT (10%) of the prior year’s Program budget without prior approval by the RWRC.
9.4 The Fiscal Agent will annually submit to the Parties an invoice for the amounts due under this MOU by May 15th of each year. Each Party will make their payment to the Fiscal Agent based on the invoice amount within ninety (90) calendar days of receipt.
9.5 The Fiscal Agent will ensure that the Santa Clara County Food Recovery Program Fund account is segregated from the Solid Waste Program Fee Fund account managed pursuant to the TAC MOA.
9.6 Should any unspent funds remain in the Santa Clara County Food Recovery Program Fund account at the end of the fiscal year, disposition of those funds will be decided by the RWRC through the annual work plan and budget process, which could include: retaining surplus funds as a reserve, crediting Jurisdictions toward future payment allocations, dedicating funding to food recovery infrastructure, and providing supplemental food recovery outreach and education or other food recovery program activities.
9.7 Jurisdictions wishing to contribute additional funds for the edible food recovery enhancement program, implemented by the Program Manager, may elect to do so during the annual work plan and budget process. Any Jurisdiction opting into any voluntary enhancement program shall do so at its own discretion and at its own cost. The Fiscal Agent will include the additional enhancement program funding formally selected by the Jurisdiction in the annual invoice submitted to each Party by May 15th of each year.
9.8 In the event of a CalRecycle Implementation Schedule for a food recovery capacity shortfall identified during a Santa Clara County Edible Food Recovery Capacity Assessment, the Program budget may increase by more than TEN PERCENT (10%) of the prior year’s Program budget if needed to fund necessary capacity improvements as outlined in the CalRecycle Implementation Schedule, following prior approval of the budget increase by the RWRC.
SECTION 10. BOOKS AND ACCOUNTS
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5 The Fiscal Agent will keep complete and accurate financial records related to accomplishing the purposes of this MOU. Upon reasonable notice to the Fiscal Agent, any Party to this MOU may inspect the financial records related to this MOU.
SECTION 11. FURTHER ASSURANCES
Each Party will adopt, execute, and make any and all further assurances, documents, instruments and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the Parties ’performance of their obligations under this MOU.
SECTION 12. REPRESENTATIONS AND WARRANTIES
Each Party represents and warrants to all other Parties as follows:
12.1 Authority: Each Party has the full legal right, power and authority under the laws of the State of California to enter into this MOU and to carry out all of its obligations herein.
12.2 Due Execution: Each Party’s representatives who sign this MOU are duly authorized to sign and bind their respective agency.
12.3 Valid, Binding, and Enforceable Obligations: This MOU has been authorized and executed by each Party and constitutes the legal, valid, and binding agreement of the Parties, and is enforceable according to its terms.
SECTION 13. REMEDIES NOT EXCLUSIVE
No remedy herein conferred upon or reserved in this MOU is exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy provided hereunder or hereafter existing in law or in equity or by statute or otherwise, and all remedies may be exercised without exhausting and without regard to any other remedy.
SECTION 14. INDEMNIFICATION
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Parties agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees , and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying Party, its officers, employees , or agents, under or in connection with or arising out of any work , authority, or Jurisdiction delegated to such Party under this MOU (including but not limited to work engaged in or contracts entered into by a Party acting in their capacity as Contracting Agent, Program Manager, TAC Administrator, or Fiscal Agent.). No Party, nor any officer, board member, or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of any other Party hereto, its officers, board members, employees, or agents, under or in connection with or arising out of any work Item 8
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6 authority or Jurisdiction delegated to such other Party under this MOU, as indicated in this Section. The obligations set forth in this paragraph will survive termination and expiration of this MOU.
SECTION 15. SEVERABILITY
The provisions of this MOU shall be severable, and if any clause, sentence, paragraph, provision or other part shall be adjudged by any court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this MOU will be valid and binding on the Parties.
SECTION 16. AMENDMENTS
This MOU may only be amended by a written instrument signed by the Parties.
SECTION 17. COUNTERPARTS
This MOU may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.
SECTION 18. USE OF ELECTRONIC SIGNATURES
Unless otherwise prohibited by law, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a writing as set forth in Evidence Code Section 1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the Parties. Should any Jurisdiction not permit electronic signatures only their copy of the MOU must be signed in the conventional manner.
SECTION 19. INTERPRETATION, PRIOR AGREEMENTS AND AMENDMENTS.
This MOU, including all Exhibits attached hereto, represents the entire understanding of the Parties as to those matters contained herein. In the event that the terms specified in any of the Exhibits attached hereto conflict with any of the terms specified in the body of this MOU, the terms specified in the body of this MOU shall control. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This MOU may be modified only by a written amendment duly executed by the Parties to this MOU. This MOU is intended to supplement the original MOA and does not replace the original MOA. The MOA shall remain in effect and to the extent that there are any contradictions between this MOU and the original MOA, the provisions in this MOU shall prevail.
SECTION 20. WITHDRAWAL FROM MOU
No individual Party may withdraw from this Agreement prior to July 1, 2025. Any party wishing to withdraw on or after July 1, 2025 must provide notice to the Contracting Agent on or before January 15 of each year. The Parties acknowledge that the Contracting Agent and each individual Party may recalculate Agreement costs pro rata in the event of any withdrawal from this Agreement and that this time is required in order to allow each remaining Party and the Contracting Agent to amend their respective budgets if needed. Any withdrawing Party must make full payments through the end of the-then current term ending Item 8
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7 on June 30. In no event shall this clause to be interpreted to prevent all Parties by unanimous mutual consent from withdrawing from this Agreement.
SECTION 21. NO LEGAL RELATIONSHIP
By entering into this MOU, the Parties are neither forming, nor do they intend to form a partnership, agency, or any other legal entity relationship. No Party is authorized to bind or to act as the agent or legal representative of the other Party for any purpose, and neither Party is granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of any other Party.
SECTION 22. GOVERNING LAW, VENUE
This MOU has been executed and delivered in, and shall be construed and enforced in accordance with, the laws of the State of California. Proper venue for legal action regarding this MOU shall be in the County of Santa Clara.
MEMORANDUM OF UNDERSTANDING
AMONG LOCAL PUBLIC AGENCIES
IN SANTA CLARA COUNTY
FOR COUNTYWIDE FOOD RECOVERY PROGRAM
IN WITNESS HEREOF, the Parties have executed the MOU as of the last date set forth below:
City of Cupertino – City Manager Approval as to form, Cupertino City Attorney
Date: Date:
City of Gilroy- City Manager Approval as to form, Gilroy City Attorney
Date: Date:
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8 City of Los Altos – City Manager Approval as to form, Los Altos City Attorney
Date:
Date:
Town of Los Altos Hills – Assistant to the
Town Manager
Approval as to form, Los Altos Hills
Town Attorney
Date:
Date:
City of Milpitas – City Manager Approval as to form, Milpitas City Attorney
Date:
Date:
City of Morgan Hill, as a Party and as
Contracting Agent and TAC
Administrator
Approval as to form, Morgan Hill City
Attorney
Date:
Date:
City of Mountain View- Acting Public
Works Director
City of Mountain View – Finance and
Administrative Services Director
Date:
Date:
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9 City of Mountain View- City Manager Approval as to form, Mountain View Senior Assistant City Attorney
Date:
Date:
City of Mountain View-Assistant City
Clerk
Date:
West Valley Solid Waste Management
Authority (on behalf of the cities of
Campbell, Monte Sereno, Saratoga, and
the Town of Los Gatos) -Executive
Director
Approval as to form, West Valley Solid
Waste Management Authority General
Counsel
Date:
Date:
City of Santa Clara - City Manager Approval as to form, Santa Clara City Attorney
Date:
Date:
City of Palo Alto – City Manager Approval as to form, Palo Alto Assistant City Attorney
Date:
Date:
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10 City of Sunnyvale – City Manager Approval as to form, Sunnyvale Interim City Attorney
Date:
Date:
County of Santa Clara, as a Party and as
Fiscal Agent - Chief Operating Officer
Approval as to form and legality, Santa
Clara County Deputy County Counsel
Date:
Date:
City of San José Approval as to form, San José City
Attorney
Date:
Date:
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 18, 2024
Report #:2401-2562
TITLE
Adoption of the Community Development Block Grant (CDBG) FY 2024-25 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG and CDBG CARES Act (CDBG-CV) Funds for FY 2024-25, and Approval of a Budget Amendment in the Community Development Block Grant Fund.
RECOMMENDATION
The Human Relations Commission (HRC) and staff recommend City Council take the following actions:
1. Adopt the draft Fiscal Year (FY) 2024-25 Annual Action Plan (AAP, Attachment A) and the associated CDBG FY 2024-25 Annual Action Plan Resolution (Attachment B) allocating Community Development Block Grant (CDBG) and CDBG CARES Act (CDBG-CV) funding for FY 2024-25; and
2. Authorize the City Manager to execute the FY 2024-25 CDBG application to fund the FY 2024-25 Annual Action Plan and associated documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; and
3. Authorize staff to submit the Fiscal Year 2024-25 AAP (Attachment A) to the U.S.
Department of Housing and Urban Development (HUD) by the July 6, 2024, deadline; and
4. Authorize the City Manager or designee to draft and execute a loan agreement, regulatory agreement, and related documents necessary to implement City Council direction on the Alma Garden Rehabilitation Project in a form consistent with the City’s affordable housing loan documents and approved by the City Attorney.
5. Amend the Fiscal Year 2025 Budget Appropriation for the Community Development Block Grant Fund (2/3 vote needed) by:
a. Increasing Revenue from Other Agencies by $1,157,286 b. Increasing General Expenses by $1,157,286
EXECUTIVE SUMMARY
The City is preparing for its second year of a two-year CDBG funding cycle for FY 2024-25. On February 8, 2024, the HRC made funding recommendations for the CDBG FY 2024-25 funding cycle and CDBG-CV funds. Given that the City’s CDBG grant entitlement amount for FY 2024-25 Item 9
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was unknown at the time, the HRC also recommended the implementation of a contingency plan to be used if CDBG FY 2024-25 funds were different than the amount estimated by staff.
On May 7, 2024, the City received HUD’s formal notification of the City’s CDBG FY 2024-25 entitlement grant amount. Subsequently, staff updated the draft FY 2024-25 AAP to:
•Include two specific Public Facilities projects; the applications for these projects were submitted in February 2024 and funding for these projects came from the HRC’s recommended funding in the CDBG Public Facilities category; •Reflect updated calculations of unspent funds from past program years and associated CDBG funding category cap amounts;
•Incorporate the City’s CDBG FY 2024-25 entitlement grant amount; and •Update the CDBG FY 2024-25 funding allocation amounts through implementing the HRC’s recommended contingency plan.1
The draft FY 2024-25 AAP contains proposed funding allocations to spend all available CDBG and CDBG-CV funds. CDBG funds available for allocation in FY 2024-25 total $1,037,807.61, including the City’s FY 2024-25 entitlement grant, estimated program income to be received in FY 2024- 25, and unspent funds from prior years. CDBG-CV funds available for allocation in FY 2024-25 total $119,478.74, including unspent funds from the canceled LifeMoves-COVID-19 Testing project and unspent CDBG-CV Planning & Administration funds.
It is not possible to fully fund all CDBG applications at the levels requested by applicants requesting funding in the CDBG Public Services and Planning & Administration categories, but the City is able to fully fund applications in the CDBG Economic Development and Housing Rehabilitation categories. The proposed recommendations:
•Allocate all available CDBG and CDBG-CV funds;
•Are consistent with the City’s CDBG Consolidated Plan; •Are consistent with the City’s 6 th Cycle Housing Element goals, projects, and activities as they pertain to CDBG; and
•Will result in funding key programs, projects, and activities that benefit many low- and very low-income Palo Alto residents.
Staff recommends that Council review and approve the draft FY 2024-25 AAP (Attachment A), the associated draft CDBG FY 2024-25 Resolution (Attachment B), and authorize staff to submit and execute associated documents necessary to implement the CDBG FY 2024-25 AAP.
BACKGROUND
The CDBG program, administered by HUD, provides annual grants on a formula basis.
Jurisdictions use the funds to develop viable urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for low- and 1 The City did not receive any public comments on the draft FY 2024-25 AAP. Consequently, no edits to the draft FY 2024-25 AAP were necessary due to public comment.
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moderate-income persons. The CDBG program is authorized under Title 1 of the Housing and Community Development Act of 1974. HUD regulations require all CDBG-funded projects and activities to meet at least one of the three national objectives:
1. Benefit low-and very low-income persons;
2. Aid in the prevention or elimination of slums or blight; or
3. Meet other community development needs that have urgency or pose a serious and immediate threat to the health or welfare of the community.
The City's CDBG program has primarily focused on meeting the first objective to benefiting low- and very-low-income persons.2
Consolidated Plan & Annual Action Plan
Programs, projects, and activities funded through the City’s CDBG program must be consistent with the goals outlined in the City’s 2020-2025 Consolidated Plan, 3 a five-year strategic plan of action that addresses priority housing and community development needs. Each year, HUD requires the submittal of an Annual Action Plan (AAP) that identifies the specific programs, projects, and activities to be funded to implement strategies identified in the Consolidated Plan.
Following the City Council's final approval of the City’s proposed funding allocations, the specific programs, projects, and activities are reported to HUD through the submittal of the AAP.
Citizen Participation for the Annual Action Plan
Per HUD's regulations and the City's adopted "Citizen Participation Plan" 4 the City must ensure adequate citizen participation in the CDBG funding allocation process. Prior to submittal of the AAP each year to HUD, the City must follow the following process: hold a public hearing on the draft AAP, subsequently hold a 30-day circulation and public comment period, and lastly hold another public hearing on the draft AAP. The February 8, 2024, HRC meeting served as the first public hearing, while the June 18, 2024 City Council meeting will serve as the second public hearing required for the FY 2024-25 AAP.
Annual Action Plan Application Review and Allocation Process CDBG funding applications were made available on October 2, 2023. A notice of CDBG funding availability was published in the Daily Post on October 2, 2023, with completed applications due November 17, 2023. The City hosted a pre-proposal conference on October 26, 2023. 2 For general information on the HUD CDBG program, please visit: https://www.hudexchange.info/programs/cdbg- entitlement/.
For general information on the Palo Alto’s CDBG program, please visit:
https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Housing-Policies- Projects/Community-Development-Block-Grant.
3 2020-2025 Consolidated Plan: https://www.cityofpaloalto.org/files/assets/public/v/3/planning-amp- development-services/cdbg-general-information/plans-and-reports/consolidated-plans/2020-2025-palo-alto- consolidated-plan-2020-21-aap-minor-amend1.pdf
4 Adopted Citizen Participation Plan 2022: https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp- development-services/cdbg-general-information/plans-and-reports/amended-citizen-participation-plan-2022- approved-by-city-council-9-12-22-final.pdf
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Additionally, staff provided technical assistance to applicants during the open application period regarding program regulations and project eligibility questions.
During this application cycle, the Notice of Funding Availability (NOFA) specified that funding would be available for projects in the CDBG Economic Development, Public Facilities and Improvements, and Housing Rehabilitation categories. The NOFA noted that new CDBG Public Services category applications were not being accepted in this second-year funding cycle, as two- year Public Services category applications were already received in the prior fiscal year. However, the NOFA specified that the City could accept new CDBG-CV applications in the Public Services category. All applications were reviewed to determine HUD compliance in accordance with eligible activities5 and National Objectives6.
Human Relations Commission Review
The HRC is involved in the preparation of the draft CDBG AAP each year. On January 17, 2024, the HRC Selection Committee reviewed the applications received for FY 2024-25. The HRC Selection Committee’s recommendations were then presented at a public hearing to the full HRC on February 8, 2024 (Attachment C). The HRC unanimously approved a motion to recommend that Council approve the draft FY 2024-25 AAP. Given that the City’s CDBG grant entitlement amount for FY 2024-25 was unknown at the time, the HRC also recommended the implementation of a contingency plan to be used if CDBG FY 2024-25 funds were different than the amount estimated by staff.
ANALYSIS
The City received its CDBG FY 2024-25 entitlement grant amount on May 7, 2024, which is a later date than anticipated, resulting from the overall delays in the FY 2024-25 federal budgeting process. While the amount of CDBG-CV funds remained unchanged, the amount of CDBG funds available for allocation in FY 2024-25 is less than the amount estimated and presented to the HRC in February 2024. This is largely due to reconciliation of the amounts of program income received in past program years, which has experienced declines relative to formerly estimated amounts.
Upon receipt of the CDBG FY 2024-25 entitlement grant amount, staff adjusted the proposed funding allocations using the HRC’s contingency plan (Table 1). The updated proposed funding allocations are also documented in the FY 2024-25 AAP (Attachment A).
CDBG funds available for allocation in FY 2024-25 total $1,037,807.61, including the City’s FY 2024-25 entitlement grant, estimated program income to be receipted in FY 2024-25, and unspent funds from prior years. CDBG-CV funds available for allocation in FY 2024-25 total $119,478.74, including unspent funds from the canceled LifeMoves-COVID-19 Testing project and unspent CDBG-CV Planning & Administration funds (Table 1). 5 CDBG Matrix Codes:
https://files.hudexchange.info/resources/documents/Matrix-Code-Definitions.pdf 6 CDBG National Objectives:
https://www.hudexchange.info/sites/onecpd/assets/File/CDBG-National-Objectives-Eligible-Activities-Chapter-
3.pdf
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Table 1: FY 2025 CDBG and CDBG-CV Funding Summary
FY 2024-25 Entitlement Grant $513,653
Program Income to be receipted in FY 2024-25 (Estimated) $60,000 Prior Year Unspent Funds $461,154.61
FY 2021-22 ($191,018.05)1
FY 2022-23 ($269,435.96)2
FY 2023-24 ($ 3,700.60)3
Estimated Total CDBG Funds Available for Allocation $1,037,807.61 Unspent Canceled Project: LifeMoves-COVID-19 Testing $34,200.50 Unspent Planning & Administration funds $85,278.24
Estimated Total CDBG-CV Funds Available for Allocation $119,478.74 1 The City has a total of $191,018.05 in unspent CDBG funds from FY 2021-22 that is available for reprogramming. 2 The City originally had $376,736.96 in unspent CDBG funds from FY 2022-23 that was available for reprogramming.
Of this amount, $107,301 was reallocated to the FY 2023-34 program budget due to lower than estimated program income (PI) from FY 2023-24 ($107,301 had been estimated; $0 will be received by the conclusion of FY 2023-24).
Consequently, the City has a total of $269,435.96 in unspent CDBG funds from FY 2022-23 that is available for reprogramming.
3 Due to program income (PI) reconciliation, adjustments in the FY 2023-24 Planning & Administration budget were made to meet the Planning & Administration category 20% Cap. Staying within the 20% Cap leaves a $3,700.60 surplus.
CDBG Funding Categories and Funding Caps
The CDBG program has five primary activity areas in which to allocate funds: (1) Public Services, (2) Economic Development, (3) Housing Rehabilitation, (4) Public Facilities & Improvement, and (5) Planning & Administration.
Federal regulations cap the amount of CDBG funds that can be spent on Public Services and Planning & Administration as follows (Table 2):
•Public Services (15% Cap) — The amount of any CDBG funds that may be obligated toward Public Services during a program year is capped at 15% of the sum of the grant allocation plus the total amount of program income received during the prior program year. •Planning & Administration (20% Cap) — The amount of any CDBG funds that may be obligated toward Planning & Administration during a program year is capped at 20% of the sum of the grant allocation plus the total amount of program income received during the current program year.
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Table 2: FY 2025 CDBG and CDBG-CV Funding Categories and Allowed Allocations Funding Categories Allowed Allocations
CDBG Funds
Public Services 15% Maximum
15% x [entitlement grant allocation ($513,653) + prior year FY 2023-24 program income ($0.00)]
$77,047.95
Planning and Administration 20% Maximum
20% x [entitlement grant allocation ($513,653) + current year FY 2024-25 anticipated program income ($60,000)]
$114,730.60
Un-capped Funds $846,029.06
Total Available for CDBG Allocation $1,037,807.61
CDBG-CV Funds
Public Services (No Cap) $88,623.75
Planning and Administration 20% Maximum $149,228.60
Program Income
Program Income is received from Alta Housing for loan repayments and rental income in excess of expenses on specific properties acquired or rehabilitated with CDBG funds. Municipalities are required to estimate anticipated program income for the activity budget for the upcoming year.
In past years, program income was estimated around $100,000. However, due to consistent declines in actual program income received in recent years, staff reduced the estimated program income for FY 2024-25 to $60,000 to align with historic trends.
CDBG and CDBG-CV FY 2024-25 Funding Allocations
Thirteen (13) applicants are recommended for CDBG and CDBG-CV FY 2024-25 funding allocations (Table 3) in the in the draft FY 2024-25 AAP (Attachment A). It is not possible to fully fund all CDBG applications at the levels requested by applicants requesting funding in the CDBG Public Services and Planning & Administration categories (Table 3), however, the City is able to fully fund applications in the CDBG Economic Development and Housing Rehabilitation categories.
The draft FY 2024-25 AAP reflects the HRC’s funding recommendations. Staff was also able to include the following two new Public Facilities projects received by the City during February 2024:
•Fire Station Sidewalk Improvement Project
•Homekey Palo Alto Recreation Project
Staff is able to include these Public Facilities projects because they were eligible, and the draft FY 2024-25 AAP reviewed by the HRC had already earmarked a large pool of CDBG funds to be used in the Public Facilities and Improvements funding category.
The largest funding recommendation is for rehabilitation at the Alma Garden affordable housing project. This funding will be structured as an affordable housing loan and will include a regulatory agreement extending the term of affordability for the property. Staff is therefore seeking authority to draft and execute the necessary loan documents in a form substantially similar to the City’s past affordable housing loans.
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Table 3: Summary of FY 2024-25 CDBG and CDBG-CV Applicants and Funding Recommendations
Agency/Program Name
FY 2023-24
Funded
Amount
FY 2024-25
Recommended
Amount
FY 2024-25
Applicant
Requested
Amount
CDBG Applicants
Public Services (15% Cap = $77,047.95)
Alta Housing - SRO Resident Supportive
Services $14,000 $11,575 $24,343
Catholic Charities of Santa Clara
County – Long Term Care Ombudsman
Program
$10,000 $7,575 $10,000
LifeMoves – Case Management $23,636 $28,247 $69,919
Silicon Valley Independent Living
Center (SVILC) – Case Management $16,500 $14,075 $28,127 Project Sentinel – Fair Housing Services $18,000 $15,575 $36,393 Subtotal $77,047 $168,782
Economic Development (No Cap)
WeeCare/Upwards $114,000 $120,000 $120,000
Subtotal $120,000 $120,000
Housing Rehabilitation (No Cap)
Rebuilding Together Peninsula (RTP) –
Safe at Home $73,585 $73,585 $73,585
Community Work Group/Abode – Alma
Garden N/A $404,800 $404,800
Subtotal $478,385 $478,385
Public Facilities & Improvements (No Cap)
Fire Station – Sidewalk Improvement
Project N/A $62,645.61 $65,000
Homekey Palo Alto – Recreation
Project N/A $185,000 $185,000
Subtotal $247,645.61 $250,000
Planning & Administration (20% Cap = $114,730.60)
City of Palo Alto Administration $119,013 $114,730 $116,060 Subtotal $114,730 $116,060
GRAND TOTAL for CDBG N/A $1,037,807.61 N/A
CDBG-CV Applicants
Public Services CDBG-CV
MOVE Mountain View - Safe Parking
Program $110,000.00 $110,000.00 $110,000.00
Planning & Administration CDBG-CV
Planning and Administration – CV N/A $9,478.74 N/A
GRAND TOTAL for CDBG-CV N/A $119,478.74 N/A
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Should the FY 2024-25 AAP be adopted by City Council, it would be submitted to HUD prior to the July 6, 2024 deadline.
POLICY IMPLICATIONS
The programs, projects, and activities recommended for funding in the draft FY 2024-25 AAP are consistent with the priorities established in the City’s adopted CDBG FY 2020-2025 Consolidated Plan.
FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with this action as CDBG and CDBG-CV funding is provided by HUD. Associated grant funding is also used to support program administration for consultant services and liability insurance.
STAKEHOLDER ENGAGEMENT
Prior to the submission of the FY 2024-2025 AAP to HUD, the City must follow the following process: hold a public hearing on the draft AAP, hold a 30-day circulation and public comment period, and hold an additional public hearing on the draft AAP.
The HRC meeting on February 8, 2024 served as the first public hearing. The City published a notice of the HRC meeting on January 24, 2024, in the Daily Post; this constituted the required 14-day public review period for the first public hearing.
The 30-day circulation, public review, and comment period on the draft FY 2024-25 AAP began on March 13, 2024 and ended on April 12, 2024; notice of funding availability was published in the Daily Post on March 13, 2024, on the City’s CDBG webpage, and via email notification to stakeholders. At the time of this report, staff did not receive public comment on the draft FY 2024-25 AAP.
The City Council public hearing on June 18, 2024 will serve as the second public hearing for review and approval of the FY 2024-25 AAP. The City published a public notice of the City Council public hearing on June 3, 2024, in the Daily Post. This advertisement complies with the City’s required 14-day public notice period for the second public hearing.
ENVIRONMENTAL REVIEW
For the purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), budgeting by itself is not a project. Prior to the commitment or release of funds for each of the proposed programs, projects, and activities, staff will carry out the required environmental reviews or assessments and certify that the review procedures under HUD, NEPA, and CEQA regulations have been satisfied for each activity.
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ATTACHMENTS
Attachment A: Draft FY 2024-25 CDBG Annual Action Plan, dated June 3, 2024 Attachment B: Draft Resolution CDBG FY 2024-25 Annual Action Plan Attachment C: Human Relations Commission Review Summary APPROVED BY:
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ANNUAL ACTION PLAN
FISCAL YEAR 2024-2025
DRAFT (June 6, 2024)
for
City Council Public Meeting:
June 18, 2024
ADMINISTERED BY: PLANNING & DEVELOPMENT SERVICES
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Table of Contents
Executive Summary .................................................................................................................................................. 2 AP-05 Executive Summary - 91.200(c), 91.220(b) ................................................................. 2 The Process ............................................................................................................................................................... 6 PR-05 Lead and Responsible Agencies - 91.200(b) ................................................................ 6 AP-10 Consultation - 91.100, 91.200(b), 91.215(l) ............................................................... 8 AP-12 Participation - 91.401, 91.105, 91.200(c) ................................................................ 16 Expected Resources ................................................................................................................................................ 20 AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) ......................................................... 20 Annual Goals and Objectives .................................................................................................................................. 24 AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) ............................................... 24 AP-35 Projects - 91.420, 91.220(d) ................................................................................ 27 AP-38 Project Summary ............................................................................................. 28 AP-50 Geographic Distribution - 91.420, 91.220(f) ............................................................. 34 AP-75 Barriers to affordable housing -91.420, 91.220(j) ...................................................... 35 AP-85 Other Actions - 91.420, 91.220(k) ......................................................................... 38 Program Specific Requirements .............................................................................................................................. 42 AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) ............................................ 42 Appendices ............................................................................................................................................................. 43 APPENDIX A ........................................................................................................... 43 Public Comments ................................................................................................. 43 APPENDIX B ........................................................................................................... 44 Public Notices ..................................................................................................... 44 APPENDIX C ........................................................................................................... 49 Application for Federal Assistance SF-424 Forms and Certifications ...................................... 49
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Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1. Introduction
The City of Palo Alto (City) Fiscal Year (FY) 2024-25 Annual Action Plan (AAP) contains the City’s plan to carry out housing and community development activities funded by Federal formula grant funds received from the U.S. Department of Housing and Urban Development (HUD), Community Development Block Grant (CDBG) program. The City operates on a two-year grant funding cycle for CDBG public service grants and a one-year cycle for CDBG capital housing rehabilitation and public facilities and improvement projects. This Action Plan covers the fifth and final year of the City’s five-year 2020-2025 Consolidated Plan, which was adopted by the Palo Alto City Council on June 15, 2020.
The Planning and Development Services Department is the lead agency for the Consolidated Plan and subsequent 5 Annual Action Plans for the City’s CDBG program. HUD requires entitlement jurisdictions to submit a Consolidated Annual Performance and Evaluation Report (CAPER) that describes the distribution of federal entitlement grant funds over the Consolidated Plan’s five-year planning period and identifies how funding allocations help meet the goals covered in the Consolidated Plan.
The City received its CDBG FY 2024-25 entitlement grant amount on May 7, 2024,CDBG funds available for allocation in FY 2024-25 total $1,037,807.61, which includes the entitlement grant ($513,653), anticipated program income ($60,000) to be receipted in FY 2024-25, and unspent funds from prior years ($461,154.61).
The City is aware that program income receipts can be inconsistent and makes its best effort to estimate future income and execute ongoing program budget adjustments as necessary. The City is also reallocating $119,478.74 in CDBG CARES Act ( CDBG-CV) funds, including unspent funds from the canceled LifeMoves - COVID-19 Testing project ($34,200.50) and unspent CDBG-CV Planning & Administration funds ($85,278.24) The City’s FY 2024-25 AAP covers the time period from July 1, 2024, to June 30, 2025. The FY 2024-25 AAP contains the accomplishments the City expects to achieve in FY 2024-25. All the projects, programs, and activities in the FY 2024-25 AAP reflect the 2020-2025 Consolidated Plan goals. CDBG-funded programs and activities principally benefit City residents that have extremely low, low, and moderate- incomes and/or populations that have special needs, such as the elderly, disabled, and homeless.
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Fiscal Year 2024-25 CDBG and CDBG-CV Budget Summary
Applicant Agency Allocation
Public Services (15% Cap = $77,047.95)
Alta Housing - SRO Resident Support Services $11,575
Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program $7,575
LifeMoves – Case Management $28,247
Silicon Valley Independent Living Center (SVILC) – Case Management $14,075 Project Sentinel – Fair Housing Services $15,575
Subtotal $77,047
Economic Development (No Cap)
WeeCare/Upwards $120,000
Subtotal $120,000
Housing Rehabilitation (No Cap)
Rebuilding Together Peninsula (RTP) – Safe at Home $73,585 Community Work Group/Abode – Alma Garden $404,800
Subtotal $478,385
Public Facilities & Improvements (No Cap)
Fire Station – Sidewalk Improvements Project $62,645.61 Homekey Palo Alto – Recreation Project $185,000
Subtotal $247,645.61
Planning & Administration (20% Cap = $114,730.60)
City of Palo Alto Planning & Administration $114,730
Subtotal $114,730
Grand Total for CDBG Budget $1,037,807.61
Public Services CDBG-CV
CDBG-CV MOVE Mountain View - Safe Parking Program $110,000 Planning & Administration CDBG-CV (20% Cap)
CDBG-CV City of Palo Alto Planning & Administration $9,478.74 Grand Total for CDBG-CV Budget $119,478.74
2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan Item 9
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The City is part of the San Francisco Metropolitan Bay Area, located 35 miles south of San Francisco and 14 miles north of San José. The City is located within the County of Santa Clara, borders San Mateo County, and encompasses an area of approximately 26 square miles, one-third of which consists of open space.
According to the U.S. Census Bureau, 2022 ACS Census , the City's total resident population is 66, 021 and has a density of 2,745 persons per square mile. Between 2020 and 2021 the City’s median household income grew from $174,003 to $194,782, a 11.9% increase. According to the U.S. Census data, 6.1% of all residents within the City had incomes below the federal poverty level. The City has the most educated residents in the country and is one of the most expensive cities to live in. According to the 2020 Palo Alto Business & Economic Activity Report in 2020, the City has between 4,100 and 7,000 for- profit and no t for profit businesses and 92,000 to 114,000 employees.
Additionally, according to the 2023 Point in Time (PIT) homeless count, there were 187 unsheltered homeless individuals and 19 sheltered. The 2022 PIT homeless count revealed there were 263 unsheltered homeless individuals and 11 sheltered homeless individuals in Palo Alto in 2022. This reflects an overall estimated 24.5% decrease in homelessness in Palo Alto.
The FY 2024-25 Annual Action Plan provides a summary of how the City will utilize its CDBG allocation to meet the needs of the City’s lower-income and special-needs populations. In FY 2023-24, the City received $514,242 from the federal CDBG program and utilized $80,825 of program income. In FY 2024-25, they City has available a total of $1,037,807.61 CDBG funds. This higher amount is largely due to activities identified in past AAPs that were canceled and previously unspent funds from completed activities. Canceled CDBG activities included Downtown Streets Inc . and Mitchell Park Place. Completed activities with remaining FY2021-22 funds were Catholic Charities, Rebuilding Together Peninsula, and City of Palo Alto Planning and Administration; remaining FY2022-22 funds were Catholic Charities, Life Moves, Project Sentinel, and City of Palo Alto Planning and Administration ; remaining FY2023-24 funds were City of P alo Alto Planning and Administration. The City also intends to reallocate $119,478.74 in CDBG-CV funds. The canceled CDBG-CV was LifeMoves-COVID-19 Testing.
3. Evaluation of past performance
An evaluation of past performance help s City leaders allocate funds to priority activities, as well as select projects that are more aligned with its priority needs and goals. The City is responsible for ensuring compliance with all rules and regulations associated with the CDBG entitlement grant program. Prior Annual Action Plans (AAPs) and Consolidated Annual Performance and Evaluation Reports (CAPERs) provide many details about the accomplishment goals, projects, and programs completed by the City and its subrecipients.
A review of the FY 2022-23 CAPER reveals that 310 persons and/or employers were assisted. Specifically:
• LMI elderly were assisted: 62
• Residents that received counseling services: 148
• Homeless individuals received shelter: 49
• Individual that received housing complaint services: 22 • Persons with disabilities receiving assistance: 24
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• LMI homeowners receiving home improvements: 5
• Workforce development program assistance: 0
The City evaluates the performance of subrecipients on a q uarterly basis. Subrecipients submit required quarterly progress reports that include client data, performance objectives, and data on outcome measures.
Prior to the start of the program year, subrecipients and the City collaboratively develop program objectives, ensuring that they are aligned with the City's overall goals and strategies. The City then utilizes the quarterly reports to review progress toward achievement of annual goals.
4. Summary of Citizen Participation Process and consultation process The City solicited input throughout the development of the FY 202 4-25 Annual Action Plan ( AAP). As required by HUD, the City provides multiple opportunities for public review and comment on the AAP, as well as any substantial amendments. Per the City’s adopted Citizen Participation Plan, the City holds a 30- day public review comment period for the AAP. The City also publishes the required notification of upcoming public hearings and the 30 -day public review comment period in a local newspaper of general circulation, on the City’s CDBG webpage , and via email blasts to stakeholders. The City held two advertised public hearings on the AAP, HRC meeting on February 8, 2024, and the City Council meeting on June 18, 2024. The AAP 30-day public review period began on March 13, 2024 and ran through April 12, 2024.
5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.
Public comments received by the City will be reported here.
6. Summary of comments or views not accepted and the reasons for not accepting them The City accepts and responds to all submitted public comments. As noted above, all public comments were reported and addressed as part of this FY 2024-25 Annual Action Plan.
7. Summary
No further discussion
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The Process
PR-05 Lead and Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
Lead Agency PALO ALTO
CDBG Administrator PALO ALTO Department of Planning & Development Services Table 1 – Responsible Agencies
Narrative
The City is the Lead and Responsible Agency for the United States Department of Housing and Urban Development’s (HUD) entitlement programs in Palo Alto. The Department of Planning and Development Services (PDS) is responsible for administering the City’s CDBG program. The City joined the HOME Consortium in 2015 and receives federal HOME Investment Partnership (HOME) funds through the County.
Entitlement jurisdictions receive entitlement funding (i.e., non-competitive, formula funds) from HUD. HUD requires the City to submit a five-year Consolidated Plan and Annual Action Plan to HUD listing priorities and strategies for the use of its federal funds.
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The Consolidated Plan helps local jurisdictions to assess their affordable housing and community development needs and market conditions. As a part of the Consolidated Plan process for 2020 -2025, the City collaborated with the County of Santa Clara (County) as the Urban County (representing the cities of Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, and Saratoga); the cities of Cupertino, Gilroy, Mountain View, Sunnyvale, San José, and Santa Clara; and the Santa Clara County Housing Authority (SCCHA) to identify and prioritize housing and community development needs across the region, and to develop strategies to meet those needs. The FY 202 4-25 AAP represents the fifth year of CDBG funding of the 2020-2025 Consolidated Plan.
Consolidated Plan Public Contact Information
Rebecca Atkinson, Planner
City of Palo Alto
Department of Planning and Development Services
250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
E-mail: [email protected] Phone: (650) 329-2596
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AP-10 Consultation - 91.100, 91.200(b), 91.215(l)
1. Introduction
The Annual Action Plan is a one-year plan that describes the eligible projects, programs, and activities to be undertaken with funds expected during FY 2024-25 and their relationship to the priority housing, homeless, and community development needs outlined in the 2020 -25 Consolidated Plan. Consultation with the City and region’s soc ial services, Human Relations Commission (HRC), Santa Clara Housing Coordinators group, City Departments, and City Council occurred in the development of the AAP.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).
The projects, programs, and activities identified in the Annual Action Plan were shaped through a detailed collaborative process. The City CDBG program administrators performed technical assist ance, as well as interviewed and monitored subrecipients. They also conducted consultations with the City’s Public Works, Planning, Housing, Human Services, and Economic Devel opment staff. The City continue s to work with and consult with city departments, non-profit organizations that provide programs and services for low- income households , private industry, homeless providers, and housing development groups . The City supports the development of affordable housing opportunities both regionally and within the City. City staff provides technical assistance to awarded public service subrecipients and new CDBG applicants, as well as attends monthly Santa Clara County Continuum of Care and Housing Coordinators meetings.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
The Santa Clara County Office of Supportive Housing is the administrator of the regional Continuum of Care (CoC). The City’s Office of Human Services Manager is in contact with the Santa Clara County Office of Supportive Housing and Destination Home regarding issues of homelessness in the community. The Santa Clara County CoC is a group comprising of stakeholders throughout the County, including governmental agencies, homeless service and shelter providers, homeless population, housing advocates, affordable housing developers, and various private parties, including businesses and foundations.
City staff continues to attend monthly CoC Housing Coordinator meetings. The CoC plans and prepares significant reports supported by its CDBG entitlements and cities . Reports adopted by the CoC strive to improve conditions for the homeless, record data related to homelessness, develop a system for volunteer assistance that helps identify gaps in homeless services, establish funding priorities, and pursue a systematic approach to addressing homelessness.
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The CoC is governed by the CoC Board, which takes a systems-change approach to preventing and ending homelessness. This same CoC Board is comprised of the same individuals who serve on the Destination:
Home (Destination Home) Leadership Board. Destination Home is a public -private partnership that is committed to collective impact strategies to end chronic homelessness.
Regional efforts of the CoC include the development of The Community Plan to End Homelessness, which identifies strategies to address the needs of people experiencing homelessness in the County, including chronically homeless individuals and families, families with children, veterans, and unaccompanied youth.
The plan also addresses the needs of persons at risk of homelessness. The new community plan to end homelessness can be viewed at
Reports and Publications - Office of Supportive Housing - County of Santa Clara (sccgov.org).
As part of the development of the 2020 -25 Consolidated Plan, the City directly consulted both the CoC and County Office of Supportive Housing for their expertise and experience in identifying community needs.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City is not an ESG entitlement jurisdiction and therefore does not receive ESG funds. However, the City does administer federal grant programs that help homeless and low -income families in Santa Clara County. The City uses its CDBG-CV funds to support safe parking lots that house non-sheltered homeless persons and families. Annually the City funds its homeless shelter for its supportive case management services. Over the last several years the City has developed funding and building plans for its new Homekey Shelter. Homekey Palo Alto is a planned modular interim housing shelter with the capacity to serve over 200 individuals annually with on-site support services. This project will be constructed by 2025.
The City provides local fund s for the County to conduct its annual Point in Time (PIT) count, an annual regional collaborative effort to count and survey sheltered and unsheltered people experiencing homelessness. The data from the County of Santa Clara PIT count is used to plan, fund, and implement actions for reducing chronic homelessness and circumstances that bring about homelessness. For 2023, the PIT count was conducted on January 26, 2023. The CoC reported there were 275 persons placed in transitional housing, 1,480 persons sheltered, and 5,904 persons unsheltered. There were 187 unsheltered homeless individuals and 19 sheltered in the City of Palo Alto. The City’s 2022 PIT homeless count was 263 unsheltered homeless individuals and 11 sheltered homeless individuals. This reflects an overall estimated 24.5% decrease in homelessness in Palo Alto.
The Santa Clara County Office of Supportive Services takes the role of Homeless Management Information System (HMIS) administration. The County, and its consultant Bitfocus, work jointly to operate and oversee HMIS. Both software and HMIS system administration are now provided by Bitfocus. Funding for Item 9
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HMIS in Santa Clara County comes from HUD, the County of Santa Clara, and the City of San Jose. The County’s HMIS is used by many City service providers across the region to record information and report outcomes.
2. Agencies, groups, organizations and others who participated in the process and consultations
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Agencies, groups, organizations who participated
1 Agency/Group/Organization REBUILDING TOGETHER PENINSULA Agency/Group/Organization Type Housing
What section of the Plan was addressed by Consultation? Affordable Housing Preservation Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
2 Agency/Group/Organization SILICON VALLEY INDEPENDENT LIVING CENTER Agency/Group/Organization Type Services - Housing
Services-Elderly Persons
Services-Persons with Disabilities
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
3 Agency/Group/Organization PROJECT SENTINEL
Agency/Group/Organization Type Services - Housing
Fair Housing and mediation services
What section of the Plan was addressed by Consultation? Fair Housing Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
4 Agency/Group/Organization ALTA HOUSING
Agency/Group/Organization Type Services - Housing
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What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
5 Agency/Group/Organization LIFEMOVES
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children
Homelessness Needs – Veterans
Strengthening Neighborhoods – Public Facilities
Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
6 Agency/Group/Organization CATHOLIC CHARITIES
Agency/Group/Organization Type Services-Housing
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
7 Agency/Group/Organization WEECARE/UPWARDS
Agency/Group/Organization Type Business and Civic Leaders What section of the Plan was addressed by Consultation? Economic Development Item 9
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Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
8 Agency/Group/Organization COMMUNINITY WORK GROUP/ABODE Agency/Group/Organization Type Housing
What section of the Plan was addressed by Consultation? Affordable Housing Preservation Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
9 Agency/Group/Organization MOVE MOUNTAIN VIEW
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children
Homelessness Needs - Veterans
Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
10 Agency/Group/Organization PEARL TRANSIT CORP.
Agency/Group/Organization Type Business and Civic Leaders What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Item 9
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Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Stakeholder communications and application
submission and project not selected.
Table 2 - Agencies, groups, organizations who participated
Identify any Agency Types not consulted and provide rationale for not consulting There were no gaps in the consultation process.
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Regional Continuum of
Care Council
Identifies housing inventory count to facilitate the provision of housing services to those experiencing homelessness.
Housing Element City of Palo Alto Identifies barriers to affordable housing, such as land- use controls, inefficiencies of the development review process, and strategies to alleviate such barriers. 2019 & 2020 STD/HIV
Annual Report Santa Clare County This report provides a summary of findings for Santa Clara County HIV surveillance data.
SCCHA Moving to Work
Annual Plan
Santa Clara County
Housing Authority
Addresses housing authority updates and strategies pertaining t o public housing and vouchers.
Regional Housing Need
Plan for San Francisco
Bay A
Association of Bay Area
Governments
This plan analyzes the total regional housing need for the County and all of the Bay Area. This effort aligns with the Strategic Plan's goal to assist in the creation and preservation of affordable housing.
Community Plan to End
Homelessness in Santa
Clara
Destination: Home
The Community Plan to End Homelessness in the County is a five-year plan to guide governmental actors, nonprofits, and other community members as they make decisions about funding, programs, priorities and needs. This effort aligns with the Strategic Plan's goal to support activities to end homelessness.
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Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Palo Alto's
Infrastructure: Catching
Up, Keeping Up
City of Palo Alto
Infrastructure Blue Ribbon
Plan. Accessibility
Summary
This plan details recommendations for infrastructure maintenance and replace, as well as identifies potential sources of funding. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of community services and public improvements.
City of Palo Alto
Comprehensive Plan
(2030)
City of Palo Alto
This plan is the primary too l for guiding future development in Palo Alto. It provides a guide for long- term choices and goals for the City future. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of community services and public improvements.
Table 2 - Other local / regional / federal planning efforts Narrative
No additional content needed.
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AP-12 Participation - 91.401, 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting
The Planning and Development Services Department is the lead agency for overseeing the development of the Consolidated Plan and Action Plan.
Per the City’s adopted Citizen Participation Plan, the City is to allow a 30 -day public review and comment period for the Action Plan. The City published notifications of public hearings and the 30-day public review comment period in the local newspaper of general circulation, on its CDBG webpage, and via email blasts. The City held two advertised public hearings on February 8, 2024, and June 18, 2024. The Action Plan 30-day public review period began on March 13, 2024 and ran through April 12, 2024. The City has not received any public comments to date. (Any comments to be inserted here once public hearings are completed) Citizen Participation Outreach
Sort Or
der
Mode of Outr
each
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL (If applicable)
1 Newspaper Ad
& Internet
Outreach
Non-
targeted/broad
community
Email Blast to
interested
organizations,
persons
Accepted NOFA
application between
October 3 –
November 17, 2023.
4 new CDBG
applications were
received; 6 applications
were received in
Program Year 1 and
applied to Year 2 of the
two-year funding cycle.
And 2 new CDBG-CV
applications.
All comments
accepted
https://www.cityofpaloalto.org/files
/assets/public/v/1/planning-amp-
development-services/cdbg-general-
information/py-2024-2025-cdbg-
nofa-application-package-
10.02.23.pdf.
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Sort Or
der
Mode of Outr
each
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL (If applicable)
2 Consultation
Listing
Social Service,
City Departments,
Area Housing
developers
Pre-Application
Conference on
October 26, 2023
Application description,
stakeholder
consultation
All comments
accepted
https://cityofpaloalto.zoom.us/rec/s
hare/OEnSZX1HwWN6fKv2PHYowU
myEheUO0GEkAA3_grogQrkP0mzJn
EB9x4C6eVDipHo.zOLaGzGCkZuWtP
SE
https://www.cityofpaloalto.org/files
/assets/public/v/1/planning-amp-
development-services/cdbg-general-
information/plans-and-
reports/action-plans/py-2024-25-
pre-proposal-conf-pres-10-26-23.pdf
3 Newspaper Ad
Non-
targeted/broad
community
Notice of Human
Relations
Commission & City
Council Public
Hearings announced
FY2024-25 CDBG
Funding Allocations,
published in the
Daily Post on January
24, 2024.
No comments received All comments
accepted
https://www.cityofpaloalto.org/Dep
artments/Planning-Development-
Services/Housing-Policies-
Projects/Community-Development-
Block-Grant
4 Public Hearing
Non-
targeted/broad
community
HRC met on Feb 8,
2024, to discuss
FY2024-25
Applications and AAP
activities.
No comments received
All comments
will be
accepted
https://www.cityofpaloalto.org/City-
Hall/Boards-Commissions/Human-
Relations-Commission
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Sort Or
der
Mode of Outr
each
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL (If applicable)
5 Newspaper Ad
Non-
targeted/broad
community
Notice of City Council
Public Hearing
announcing FY2024-
25 CDBG Funding
Allocations,
published in the
Daily Post on March
13, 2024.
CORRECTION NOTICE
of City Council Public
Hearing Date
published in Daily
Post on June 3, 2024.
Not yet completed
All comments
will be
accepted
6 Public Hearing
Non-
targeted/broad
community
The City Council held
its second public
hearing on June 18,
2024, to discuss
Draft AAP. Council
members
recommended
approval.
Not yet completed
All comments
will be
accepted
7 Internet
Outreach
Non-
targeted/broad
community
Webpage postings
for both hearings
Jan 24th No comments
received
March 13th No
comments received
All comments
will be
accepted
https://www.cityofpaloalto.org/Dep
artments/Planning-Development-
Services/Housing-Policies-
Projects/Community-Development-
Block-Grant
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Sort Or
der
Mode of Outr
each
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL (If applicable)
8 Internet
Outreach
Non-
targeted/broad
community
Email Blast to
interested
organizations,
persons
3 Email Blasts were
sent on January 24
and March 13, 2024,
and June 3, 2024, to
all documented
contacts, interested
agencies, and
individuals.
Jan 24th No comments
received
March 13th No
comments received
June 3rd No comments
received
All comments
will be
accepted
Table 3 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
In FY 2024-25, the City will allocate a total of $1,037,807.61 CDBG funds to eligible activities that address the needs identified in the Consolidated Plan. These CDBG funds reflect the sum of a $513,653 FY 2024-25 Entitlement Grant, $60,000 Program Income (estimated) to be receipted in FY 2024-25, and $464,154.61 in unspent funds from prior years that are reallocated. The City acknowledges that program income receipts may vary and endeavors to forecast future income while implementing necessary adjustments to the ongoing program budget. In FY 2024-25, the City reallocated a total of $119,478.74 in CDBG CV funds to eligible activities to prevent and respond to the spread of coronavirus. The total reallocated CDBG-CV funds is the sum of $34,200.50 unspent funds from the canceled LifeMoves -COVID-19 Testing P roject and $85,278.24 unspent funds from Planning & Administration funds. It should be noted that while the HUD CDBG allocations are critical, the allocations are not sufficient to overcome barriers and address all needs that low - income individuals and fa milies face in attaining self-sufficiency . The City efforts include leveraging local county, regional, state and federal funds estimating $5.3 million, that align with goals outlined in the Consolidated Plan.
The City continues to leverage additional resources, as described below, to provide support and services to the communities' populations in need.
The following section discusses the anticipated resources available for community development activities during the remaining year of the City’s 5-Year Consolidated Plan.
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Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount Available Year 5 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation
: $
Program
Income: $
Prior Year
Resources: $
Total:
$
CDBG public -
federal
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
513,653 60,000
(estimate
d)
464,154.61
CDBG
$119,478.74
CDBG-CV
1,037,807.61
CDBG
$119,478.74
CDBG-CV
1,037,807.61
CDBG
$119,478.74
CDBG-CV
This is the 5th year of the 2020-2025 ConPlan.
CDBG funds are used for public services that
benefit low income and special needs
households, economic development, housing
rehabilitation through preservation of owner-
occupied homes, and public facilities &
improvement projects. A total of $464,154.61
in unspent funds from prior years are
reprogrammed in the FY2024-25 AAP. The
following canceled projects required a
substantial amendment for their
corresponding program years:
-PY 2021-22 Downtown Streets Inc. -
Workforce Development Program project
$133,068.07. In total, $191,018.05 of unspent
funds from PY2021-22 are available for
reprogramming.
-PY 2022-23 Mitchell Park Place project
$356,330. Reconciliation of PI receipted
resulted in total $269,435.96 unspent funds
from PY2022-23 are available for
reprogramming.
In total, $3,700.60 of unspent funds from
PY2021-22 are available for reprogramming.
All prior years’ resources were reallocated to
PY2024-25 Housing Rehabilitation projects.
Table 4 - Expected Resources – Priority Table
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Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City joined the Santa Clara County's HOME Consortium in 2015 and does not receive federal HOME funds on an entitlement basis from HUD.
The HOME Consortia consists of the cities of Cupertino, Gilroy, Palo Alto, and the Urban County. HOME funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. Starting in FY 2015 - 16 developers of affordable housing projects w ere eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto. Applications are directly submitted through the County's request for proposal process for av ailable HOME funds. Certain nonprofit organizations known as Community Housing Development Organizations (CHDOs) may also apply for funding from California Departm ent of Housing and Community Development (HCD) for housing projects located within Palo Alto. The City has only received one HOME grant from 1992 HOME funding for the Barker Hotel project. Proceeds from HOME loan repayments are deposited into a HOME Program Income Fund and used in accordance with the HOME program regulations.
In addition, the Coun ty funds only projects that has the local support of the City. If the City receives HOME dollars from its participation in the HOME consortium, the required 25% matching funds will be provided from the City’s Affordable Housing Fund, which is comprised of two sub - funds: the Commercial Housing Fund and the Residential Housing Fund. To date, no projects within the City have been funded through the HOME Consortium. Moving forward, the City plans to increase outreach to developers in the City to provide additio nal information on the HOME Consortium and available funding.
Other State and Federal Grant Programs
In addition to the CDBG entitlement dollars, the federal government has several other funding programs for community developm ent and affordable housing activities. These include Section 8 Housing Choice Voucher Program, Section 202, Section 811, the Federal Home Loan B ank Affordable Housing Program (AHP), and others. It should be noted that in most cases, the City would not be the applicant for these funding sources as many of these programs offer assistance to affordable housing developers rather than local jurisdictions. The projects funded leverage private, HSPAP, and County funds estimated 1.6 million to support their programs.
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In September 20 22, multiple State bills were signed, including SB 6 (Middle -Class Housing Act) and AB 2011 to advance housing development progress. These two bills streamline the regulatory process and ensure that workers building homes are being paid a fair wage . The bi ll helps generate new housing units plus general thousands of jobs. The California Housing Accelerator provided funding for shovel-ready projects in 2022 whose financing was stalled because of the difficulty in receiving tax credits. The City c ontinues to track and look for opportunities to leverage State resources for the City.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
The City has no surplus public land.
Discussion
Local Housing and Community Development Sources. Other local resources that support housing and community development programs include:
• Palo Alto Commercial Housing Fund provides assistance for the development of below market rate (BMR) housing units which are, in part, funded by mitigation fees obtained from commercial and industrial development projects. • ADA coordinator and city-wide ADA capital improvement listing. • The Housing Element outlines the City’s detailed housing priorities and needs. • Rebuilding Together Peninsula assists 4-6 low-to moderate income homeowners with home improvements.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Affordable
Housing
2020 2025 Affordable
Housing
Affordable Housing CDBG: $478,385
Homeowner Housing
Rehabilitated: 5 Households
Rehabilitating rental housing
units for extremely low income
households: 10
2 Homelessness 2020 2025 Homeless Homelessness CDBG: $28,247
CDBG-CV:
$110,000
Public service activities other
than Low/Moderate Income
Housing CDBG Benefit: 158
Persons Assisted
CDBG-CV Benefit: 150 Persons
Assisted
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
3 Strengthen
Neighborhoods
2020 2025 Non-Homeless
Special Needs
Non-Housing
Community
Development
Community Services
and Public
Improvements
CDBG: $
$252,717.61
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 435 households
Assisted
Public service activities other
than Low/Moderate Income
Housing Benefit: 75 Persons
Assisted
4 Fair Housing 2020 2025 Non-Housing
Community
Development
Fair Housing CDBG: $15,575 Public service activities other than Low/Moderate Income
Housing Benefit: 12 Persons
Assisted
5 Economic
Development
2015 2020 Non-Housing
Community
Development
Economic
Development
CDBG: $120,000 Jobs created/retained: 0 Jobs
Businesses assisted: 15
Businesses Assisted
Table 5 – Goals Summary
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Goal Descriptions
The goal of the City of Palo Alto, with funding from CDBG, is to increase self- sufficiency, housing opportunities and economic opportunity for lower-income residents and individuals so that they can achieve a higher quality of life . In 2020, the City has established the following goals as a guide for allocating CDBG funding during the 5-year consolidated planning period:
1 Goal Name Affordable Housing
Goal Description Assist in the creation and preservation of affordable housing for low income and special needs households. 2 Goal Name Homelessness
Goal Description Prevent and end homelessness, such as funding affordable housing opportunities, resource centers for homeless individuals, and support for tenants of single-room occupancy units 3 Goal Name Strengthen Neighborhoods
Goal Description
Provide community services and public improvements to benefit low-income and special needs households. This includes assisting those with disabilities to transition from unstable housing to permanent housing, supporting residents of long- term care facilities, and supporting individuals experiencing domestic violence. 4 Goal Name Fair Housing
Goal Description Promote fair housing choice by funding fair housing organizations to provide fair housing services, such as education, tenant-landlord mediation, and testing.
5 Goal Name Economic Development
Goal Description
Support economic development activities that promote employment growth and help lower-income people secure and maintain jobs. This includes funding nonprofits working toward developing the skills of low-income and homeless individuals.
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AP-35 Projects - 91.420, 91.220(d)
Introduction
The Consolidated Plan goals represent high priority needs for the City of Palo Alto (City) and serve as the basis for the strategic actions the City undertakes to meet these needs. The projects, listed in no particular order are:
# Project Name CDBG and CDBG-CV
1 2024 Alta Housing SRO Resident Support Services
2 2024 Catholic Charities of Santa Clara County: Long Term Care Ombudsman Program 3 2024 LifeMoves: Case Management
4 2024 Silicon Valley Independent Living Center (SVILC): Case Management 5 2024 Project Sentinel – Fair Housing Services
6 2024 WeeCare/Upwards
7 2024 Rebuilding Together Peninsula (RTP) – Safe at Home 8 2024 Community Work Group/Abode – Alma Garden
9 2024 Fire Station – Sidewalk Improvements Project
10 2024 HomeKey Palo Alto – Recreation Project
11 2024 Planning & Administration
12 2024 CDBG-CV MOVE Mountain View - Safe Parking Program 13 2024 CDBG-CV Planning & Administration
Table 6 – Project Information CDBG
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City awards CDBG funding to projects and programs that primarily benefit s low-income, homeless and special needs households. The City operates on a two-year grant funding cycle for CDBG public service grants and a one-year cycle for CDBG capital housing rehabilitation and public facilities and improvement projects. Projects are only considered for funding within the Consolidated Plan period if they address the goals discussed.
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AP-38 Project Summary
Project Summary Information
1 Project Name 2024 Alta Housing SRO Resident Support Services Program Target Area Citywide
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $11,575
Description SRO Resident Support Services Program.
Eligible Activity (Matrix Code): 05O, Mental Health Services CDBG National Objective: LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
Case management and support counseling services will be provided to an estimated 131 residents of Barker Hotel and Alma Place.
Location Description 439 Emerson Street, Palo Alto, CA 94301 735 Alma Street Palo Alto, CA 94301
Planned Activities Alta Housing’s Resident Support Services program project activities include case management and counseling services to residents at the Barker Hotel (25 units) and at Alma Plac e (106 units). Funding would support a SRO Service Coordinator services to assist residents with managing daily living skills, maintaining their mental and physical health, one-on-one support counseling, and crisis intervention. 2 Project Name 2024 Catholic Charities of Santa Clara County: Long Term Care Ombudsman Program
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services
Funding CDBG: $7,575
Description Long-Term Care Ombudsman Program.
Eligible Activity (Matrix Code): 05A, Senior Services
CDBG National Objective: LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
The program will provide advocacy and complaint investigation for 50 elderly residents of long-term care facilities in Palo Alto.
Location Description Long-term care and skilled nursing facilities throughout the City.
Planned Activities Catholic Charities' Long -Term Care Ombudsman Program (LTCOP) project activities include regular contact with Palo Alto Residential Care Facilities to observe and monitor conditions of care and handle and resolve issues regarding residents' rights, unmet ne eds, allegations of abuse, and complaints effectively, thus promoting resident well -being.
Funding would support Program services.
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3 Project Name 2024 LifeMoves: Case Management
Target Area Citywide
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $28,247
Description Opportunity Services Center/Hotel De Zink
Eligible Activity (Matrix Code):- 03T, Operating Costs of Homeless/AIDS Patients Programs
CDBG National Objective: LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
27 unduplicated individuals (homeless and/or very low -income individuals per year) will receive case management services, including assistance with housing/job searches , referrals and mentoring at the Opportunity Services Center and Hotel De Zink.
Location Description 33 Encina Way, Palo Alto, CA 94301 Planned Activities LifeMoves project activities include case management services to Opportunity Services Center and Hotel De Zink clients in locating housing and/or employment and be connected to benefits. Additionally, activities include provision of services at the Opportu nity Services
Center, such as showers, restrooms, laundry facilities, benefits enrollment assistance, transportation vouchers, and referrals for medical and dental care for residents of Palo Alto and surrounding areas who are homeless or at risk of homelessness.
4 Project Name 2024 Silicon Valley Independent Living Center (SVILC): Case Management
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $14,075
Description Case Management.
Eligible Activity (Matrix Code): 05B, Handicapped Services CDBG National Objective: LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
25 unduplicated Palo Alto residents will benefit from one-on-one housing assistance.
Location Description Citywide
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Planned Activities Silicon Valley Independent Living Center (SVILC) project activities assist very low income Palo Alto residents with disabilities and their families with their housing search for affordable, accessible housing. Funding would support the Housing and Emergency Services for Persons with Disabilities Program and case management services. The Program provides education & training on all aspects of how to conduct a housing search to transition from homelessness, health care facilities, or unstable, temporary housing into safe, long -term community -based housing. It includes group workshops, one-on-one service training, and access to IL (Independent Living) services, including emergency food assistance, security deposits/rent (as funding allows), information & referral to ensure the long-term sustainability of housing. 5 Project Name 2024 Project Sentinel – Fair Housing Services Target Area Citywide
Goals Supported Fair Housing
Needs Addressed Fair Housing
Funding CDBG: $15,575
Description Fair Housing Services.
Eligible Activity (Matrix Code): O5J, Fair Housing Activities CDBG National Objective: LMC 24 CFR 570.208(a)(2)
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
12 unduplicated low and moderate income individuals will be provided with fair housing services of complaint counseling, investigation, and where appropriate enforcement referral.
Location Description Citywide
Planned Activities Project Sentinel’s project activities include fair housing counseling and investigative services for Palo Alto residents through casework, increase knowledge of fair housing laws and individual counseling on the fair housing laws to improve understanding of residents' and housing providers' rights or obligations. Funding would provide operating expenses for these fair housing services.
6 Project Name 2024 WeeCare/Upwards
Target Area Citywide
Goals Supported Economic Development
Needs Addressed Economic Development
Funding CDBG: $120,000
Description WeeCare/Upwards assists Family Childcare Home microenterprise businesses and will provide business improvement services to such businesses in the City.
Eligible Activity (Matrix Code): 18B Economic Development-Technical Assistance. CDBG National Objective LMCSV
Target Date 6/30/2025
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Estimate the number
and type of families
that will benefit from
the proposed activities
15 daycare microenterprises will benefit from this project. Plus, the possibility of new full-time jobs will be created by WeeCare/Upwards.
Location Description Citywide
Planned Activities WeeCare/Upwards, a for-profit organization, project activities support their BOOST program for low -income Family Child Care Home (FCCH) providers in Palo Alto. The BOOST program provides specialized technical assistance and business support for income qualifying FCCH’s. 7 Project Name 2024 Rebuilding Together Peninsula (RTP)– Safe at Home Target Area Citywide
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding CDBG: $73,585
Description Eligible Activity (Matrix Code): 14A
National Objective LMH 24 CFR 570.202(a)(1)
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
5 LMI households will benefit from home improvements.
Location Description Citywide
Planned Activities RTP project activities preserve affordable housing by transforming homes at no cost to the service recipient. The majority of the low- income homeowners served will be elderly seniors and/or people with disabilities, who are physically and or financially unable to maintain safe living conditions for themselves and their families. Funding covers the costs of home repair, such as construction materials and payment of subcontractors.
8 Project Name 2024 Community Work Group/Abode – Alma Garden Target Area 2024 Alma Garden Apartments 2507-2533 Alma Street, Palo Alto, CA 94306
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding CDBG: $404,800
Description Eligible Activity (Matrix Code): 14B
National Objective LMH 24 CFR 570.202(a)(1)
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
10 LMI households will benefit from apartment unit improvements.
Location Description Citywide
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Planned Activities Community Work Group/Abode project activities include rehabilitating rental housing units in Alma Garden, an affordable multi-family housing complex for extremely low income households, to address existing health and safety concerns. Funding would be spent on a project manager, bathroom upgrades, exterior repairs, and electrical and water utility upgrades.
9 Project Name 2024 Fire Station – Sidewalk Improvements Project Target Area City-Wide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $62,645.61
Description This project will focus on renovations of sidewalks, curbs, and curb ramps located at 3600 Middlefield Road.
Eligible Activity (Matrix Code): 03L, Sidewalks
National Objective LMC
Target Date 9/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
331 LMI households
Location Description 3600 Middlefield Rd, Palo Alto, CA 94303, Fire Station No.4 Planned Activities Plan, design and reconstruct the sidewalk, curbs and curb ramps at the intersection area of Meadow Drive and Middlefield Road. The anticipated project requires a contractor bidding process and has an estimated completion timeframe of 18 months.
10 Project Name 2024 Homekey Palo Alto – Recreation Project Target Area City-Wide
Goals Supported Homelessness
Needs Addressed Homeless
Funding CDBG: $185,000
Description This project will provide an on-site play structure and area at the HomeKey Palo Alto shelter.
Eligible Activity (Matrix Code): 03C, Homeless Facilities National Objective LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
104 households annually
Location Description 1237 San Antonio Road
Planned Activities LifeMoves, this homeless service provider will manage the design and construction of recreation area and recreation equipment within the Homekey Palo Alto shelter property. The anticipated project completion timeframe is 12 months.
11 Project Name 2024 Planning & Administration
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Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $114,730
Description Eligible Activity (Matrix Code): 21A, General Program Administration Planning and Administration: CDBG Citation: 570.206(a)
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
The City will provide general administrative support to the CDBG program.
Location Description Citywide
Planned Activities Administer the administrative costs for the overall management, coordination, and evaluation of the CDBG program, and the project delivery costs associated with bringing projects to completion. 12 Project Name 2024 CDBG-CV MOVE Mountain View – Safe Parking Program Target Area City-Wide
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $110,000
Description MMW operates and provides homeless services at multiple approved Safe Parking Lots in Palo Alto. Case managers helping assist homeless individuals staying on approved parking lots.
Eligible Activity (Matrix Code): 03T, National Objective LMC Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
150 individuals will be assisted through the safe parking program.
Location Description Citywide
Planned Activities CDBG funds will be used for case management staff salaries working with the MMV Safe Parking Program. Establishing housing partnership with property owners and landlords. Rather than solely referring clients to existing housing opportunities, MOVE MV case managers and or housing specialists forge direct connections by facilitating client sponsorship in rental placement. Beneficiaries include vehicle dwellers and other homeless persons living in Palo Alto parking lots. 13 Project Name 2024 CDBG-CV Planning & Administration
Target Area City-Wide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $9,478.74
Description Planning and Administration: CDBG Citation: 570.206(a) Target Date 6/30/2025
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Estimate the number
and type of families
that will benefit from
the proposed activities
The City will provide general administrative support to the CDBG-CV program.
Location Description Citywide
Planned Activities Administer the administrative costs for the overall management, coordination, and evaluation of the CDBG-CV program, and the project delivery costs associated with bringing projects to completion.
AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low -income and minority concentration) where assistance will be directed.
The City allocates CDBG funds to benefit low-moderate income (LMI) households and does not have any designated target areas. Instead, the City focuses CDBG funds on public services, housing preservation, economic development-business assistance, and capital improvements across the City as a whole.
Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
Table 7 - Geographic Distribution
Rationale for the priorities for allocating investments geographically This question is not applicable to Palo Alto’s program.
Discussion
See discussion above.
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AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction
The City of Palo Alto is committed to providing equitable opportunities to all residents of Palo Alto in order to expand access to housing and increase housing mobility. The City will take action to overcome patterns of segregation, address disparities in housing needs and access to opportunity, and foster inclusive communities. The City’s Housing Element contains a listing of action s established to reduce the barriers to affordable housing, including but not limited to racial inequities, high housing and land costs, regulatory constraints, and public resistance. Currently the City is experiencing a constrained housing supply market, so when housing developments produce housing units that are considered “relatively” affordable, higher- income buyers and renters outbid lower-income households. Subsequently, a home’s final sale or rental price may exceed the projected sales or rental costs. Public subsidies are often needed to guarantee affordable homes for low- and moderate-income households. The City wants to ensure adequate planning is undertaken to provide its “fair share” of affordable and market-rate housing, demonstrating a strategy for removing barriers to increase housing production that addresses today’s housing shortage.
To address the requirements of AB 686, the City participate d in the 2020 -2025 Santa Clara County Consolidated Plan (ConPlan). The County’s ConPlan identifies eight housing goals for the County and each of its participating jurisdictions, including Palo Alto. Additionally, the ConPlan identifies regional and local barriers to fair housing around the region, with heavy emphasis on racial and economic disparity, land use and zoning, and lack of assistance and resources. Programs were identified to reduce barriers in the City, including adjusting zoning amendments to expand affordable and alternative housing opportunities and increasing accessibility to information.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment.
Palo Alto is addressing the barriers to affordable housing through:
• Density Bonus Ordinance: The City recently updated its Density Bonus Ordinance, which lowered the eligibility requirements to qualify for a higher density bonus percentage up to 80% and provided more exceptions to applicable zoning and development sta ndards. One significant update is if a 100% affordable development is located within half a mile of a major transit stop, the City cannot impose any density limits and is entitled to a maximum height increase of three additional stories or 33 feet.
• Remove Density requirements in certain zoning districts. • Below Market Rate (BMR) Housing Program: Established in 1974, the City’s BMR requires developers to provide a certain percentage of units as BMR in every approved project of three units or more. The progra m originally required that for developments on sites of less than five acres, the developer must provide 15 percent of the total housing units as BMR housing units. If Item 9
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the site was larger than five acres, the developer was required to provide 20 percent of the units as BMR housing. The City of Palo Alto has historically used in -lieu fees and development impact fees charged on new, market- rate housing and/or commercial development to finance 100% affordable developments. The City updated its Commercial and R esidential Impact Fee Nexus Studies and adopted two ordinances making changes to its BMR program and adopted a new fee structure. The ordinances became effective on June 19, 2017. • Fair Housing: Protect tenants from displacement through more robust tenant p rotections and better access to legal services. The City annually provides CDBG funding to Project Sentinel, a non- profit entity that provides expertise in fair housing law and tenant -landlord disputes. Program services include information, referrals, community outreach, and education. In addition, Project Sentinel resolves fair housing complaints via investigation, mediation, education and outreach to both property owners and tenants about fair housing policies. • Fair Housing: Increase access to lending opportunities for residents of historically low -income communities of color.
• Housing Incentive Program (HIP): Effective May 2, 2019, the HIP was enacted as an alternative to the State Density Bonus law and provides development incentives including no housing density restrictions, increased floor area ratios and increased lot coverage. The HIP is available to specific areas of the City where higher-density development is encouraged. • Affordable Housing (AH) Combining District: In 2018, the City Council adopted the Affordable Housing Combining District to provide flexible development standards beyond the State Density Bonus Law to allow 100% affordable housing projects located in a commercially zoned area. • Workforce Housing (WH) Combining District: The City Council also adopted in 2018 the Workforce Housing Combining District to encourage the development of housing within half -mile of major fixed rail transit by modifying flexible development standards for the public facilities (PF) zoning district.
• The average Palo Alto home, as of February 1, 2023 , costs about 8 times the national average home price, and the monthly rent is about 2.5 times the national average. • Title 18 (Zoning) Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units:
The City recently updated amended its Ordinance Title 18, which included “the development of a single -family home, ADU, and/or a JADU on a lot t hat allows for single -family development shall not be considered a multifamily development pursuant to PAMC Section
18.04.030, nor shall they require Architectural Review pursuant to other sections of Chapter
18. In addition to addressing the square footage height restrictions, 18.09.040 • The City Amended Chapter 9.68 (Rental Housing Stabilization) of the Municipal Code to expand just cause eviction protections to Palo Alto renters, including reducing the minimum time period Item 9
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required for renters to qualify for just cause eviction protections.
Discussion
Please see above.
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AP-85 Other Actions - 91.420, 91.220(k)
Introduction
The following provides a description of today's obstacles and or barriers to meeting LMI or underserved populations, including vulnerable populations, housing preservation needs, lead -paint issues, increased earning capacity for LMI households, city delivery structure for supporting needed services, and regional approaches to serving and helping the homeless populations.
Actions planned to address obstacles to meeting underserved needs The City collaborative works with social service providers, affordable housing developers , housing preservation entities, fair housing and homeless assistance agencies to address obstacles to permanent housing for all residents. To address this, the City supplements its CDBG funding with other resources and funds, such as:
• Support social services entities including Alta Housing and Catholic Charities that provide needed supportive services for extremely low-income and or elderly residents. • In FY 2022-23, the City’s Human Service Resource Allocation Process (HSRAP) provided $622,377 from the General Fund in support of human services. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies. • Support low income persons with disabilities. Provide CDBG funds to Sil icon Valley Independent Living Center (SVILC) with case management needs.
• Support the city’s homeless population through CDBG awards and other funding sources to:
LifeMoves Shelter and proposed Homekey Palo Alto shelter development project. • The Housing A uthority of the County of Santa Clara (HACSC) administers the federal Section 8 program countywide. The program provides rental subsidies and develops affordable housing for low-income households, seniors and persons with disabilities living within the County. • Continue to locally support, through General City Funds, the Downtown Streets Team to reduce homelessness through a “work first” model. Downtown Streets Team uses its community connections to provide training and job opportunities to homeless people, specifically in the downtown area.
Actions planned to foster and maintain affordable housing The City will foster and maintain affordable housing by continuing the following programs and ordinances:
• Support low income homeowners through annual CDBG allocat ions for housing rehabilitation .
Provide CDBG funds to Rebuilding Together Peninsula to preserve existing affordable housing stock. The City is also planning an affordable housing rehabilitation and replacement project, Buena Vista Mobile Home Park that will benefit approximately 270 residents. • Support Community Work Group (Abode ) with CDBG funds to preserve 10 affordable housing Item 9
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units.
• Annual CDBG allocations to Rebuilding Together Peninsula to preserve existing affordable housing stock.
• A Business Tax was approved in late 2022 to fund affordable housing, public safety, homeless services, rail crossing safety, and general city services. • The Below Market Rate Emergency Fund, which provides funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units.
• Apply to both the State of California HOME program, and the County’s HOME Consortium to fund supported affordable housing projects.
• The Commercial Housing Fund and Residential Housing Fund are used by the City to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing.
• The Density Bonus Ordinance regulations allow for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing provided.
• The City’s participation in the County's HOME Consortium will allow developers of affordable housing projects to be eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto, including acquisition, construction, and rehabilitation.
• The City is collaborating with Santa Clara County and Eden Housing in the development of Michell Park Place, a new affordable housing development project providing 50 affordable units located in one of the City’s LMI census tracts.
Actions planned to reduce lead-based paint hazards
The City’s housing and CDBG staff provides technical assistance, information , and referrals to property owners, developers, and non -profit organizations rehabilitating older housing about lead -based paint (LBP) hazards. Any house to be rehabilitated with City financial assistance is required to be inspected for the existence of LBP and LBP hazards. The City will provide financial assistance for the abatement of LBP hazards in units rehabilitated with City funding. The City also requires that contractors be trained and certified in an effort to decrease the risk of potential use of LBP in new units. All development and rehabilitation projects must be evaluated according to HUD’s Lead Safe Housing Rule 24 CFR Part 35 .
Rebuilding Together Peninsula, through its housing rehabilitation program, ensures each rehab includes lead-based paint assessment and mitigation on impacted areas for each housing case.
Actions planned to reduce the number of poverty-level families The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide direct assistance to the homeless and those in danger of becoming homeless. In FY 2024-25, these programs will include the following:
• LifeMoves provides basic necessities for persons who are homeless or at risk of becoming Item 9
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homeless. The Opportunity Services Center is a comprehensive, one-stop, multi-service, day drop- in center that provides critical services for homeless Palo Alto reside nts. Specifically, the facility provides showers, laundry, clothing, snacks, case management, and shelter/housing referral services.
• Homekey Palo Alto, although not CDBG funded, is supported by the City and other state and federal resources to build a new interim housing shelter that will serve over 200 individuals annually. This new facility includes 88 rooms with interior shows and restrooms. • Alta Housing provides counseling and supportive case management services for low -income residents of single -room occupancy facilities to help them maintain housing stability. Activities include financial counseling, health maintenance, information, and referral, problem -solving, employment assistance, crisis intervention, and case management. • WeeCare provides business services and best management practices for small daycare businesses in the City. Many of which provide childcare for LMI families. • Buena Vista Mobile Home Park development project, although not CDBG funded, is supported by the City to replace, and increase the number of residential units in the development. Plus improve neighborhood amenities include walking trails, bulk trash removal, new water/sewer infrastructure.
Actions planned to develop institutional structure
The administration of the City’s CDBG program requires collaboration between several departments including the finance department, administration, Human Services, and Planning and Development Services Department staff. The Planning and Development S ervices Department assigns critical staff to manage project development, subrecipient contracting and technical assistance, consultant management, collaboration with public works departme nt staff, and fund draws and activity spending.
The Finance Department assists in the process by reconciling CDBG and City budget accounts and draw approvals. The Human R elations Commission and Council hold public hearings and recommend recommendations and final approvals of annual CDBG project activities and projects.
The City strives to improve intergovernmental and private sector cooperation to synergize efforts and resources and develop new revenues for community service needs and affordable housing pr oduction.
Collaborative efforts include:
• Regular meetings between entitlement jurisdictions at the CDBG Housing Coordinators meetings and Regional Housing Working Group.
• Joint jurisdiction Request for Proposals and project review committees. • Collaborations between the City’s housing and public works departments. • Coordination on project management for projects funded by multiple jurisdictions. • HOME Consortium meetings between member jurisdictions for affordable housing projects.
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service agencies.
The City benefits from a strong jurisdiction and region -wide netwo rk of housing and community development partners, such as the County and the Continuum of Care. To improve intergovernmental and private sector cooperation, the City continues to participate with other local jurisdictions and developers in sharing information and resources.
In FY 2024 -25, the City award ed CDBG funds to the Alma Garden project for the preservation of 10 residential very low income rental units.
The City is collaborating with Santa Clara County and Eden Housing in the development of Michell Park Place, a new affordable housing development project providing 50 affordable units located in one of the City’s LMI census tracts.
In addition to the actions listed above, the City continue s to coordinate with the City’s Human Relations Commission on funding efforts to address community needs comprehensively.
Discussion
Please see discussions above.
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Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction
Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in pro jects to be completed.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 60,000
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 60,000
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00%
Discussion
Please see the discussion above.
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Appendices
APPENDIX A
Public Comments
The City held two Advertised public hearing on February 8, 2024, and June 18, 2024. The draft CDBG FY2024-25 Annual Action Plan dated February 1, 2024 was circulated for public comments and reviewed from March 13, 2024, through April 12, 2024. No public comments were received during this 30-day public comment and review period time. No public comments were received to date, June 3, 2024. All comments will be accepted and recorded once received. Any written comments received will be in the public participation document.
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APPENDIX B
Public Notices
• Publication October 2, 2023: Notice of CDBG and CDBG-CV Funding Availability (NOFA) • Publication January 24, 2024: Notice of Public Review, Comment Period, and Public Hearing for the FY 2024-25 Community Development Block Grant (CDBG) Annual Action Plan • Publication March 13, 2024: Notice of Public Review, Comment Period , and Public Hearing for the Fiscal Year (FY) 2024-25 Community Development Block Grant (CDBG) Annual Action Plan • Publication June 3, 2024: Correction Notice - Public Hearing Date Change, Notice of Public Review and Public Hearing for the Fiscal Year ( FY) 2024-25 Community Development Block Grant (CDBG ) Annual Action Plan
•
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APPENDIX C
Application for Federal Assistance SF-424 Forms and Certifications
(to be completed and signed after City Council action on the CDBG FY 2024-25 Annual Action Plan)
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*NOT YET ADOPTED*
ATTACHMENT B
0160144_KB2_20240529_AY16
Resolution No. _______________
Resolution of the City Council of the City of Palo Alto Approving the Use of Community Development Block Grant for Fiscal Year 2024-25 and Substantial Amendments for the Use of Community Development Block Grant Fiscal Year 2021-22, Fiscal Year 2022-23 & CDBG CARES Act Funds for Fiscal Year 2020-21
R E C I T A L S
A. On May 1, 2020, the Palo Alto City Council approved and adopted a document entitled “Consolidated Plan” which identified and established the Palo Alto housing and non- housing community development needs, objectives, and priorities for the period July 1, 2020, to June 30, 2025.
B. The Fiscal Year 2024-2025 Annual Action Plan, Substantial Amendments, and the annual funding update to the Consolidated Plan, was subjected to public review and commentary during the period from March 13, 2024 through April 12, 2024.
C. The potential uses of Community Development Block Grant (CDBG) and CDBG CARES Act (CDBG-CV) funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and reflected in the recommendations and comments of the Human Relations Commission Selection Committee, Human Relations Commission, and other interested citizens.
D. Under the CDBG program, the highest priority is given to activities which will benefit persons with low and moderate incomes. As an extension, under the CDBG-CV program, the highest priority is given to activities which prevent, prepare for, and respond to coronavirus.
E. The City Council and the Human Relations Commission held publicly noticed public hearings on the proposed uses of the CDBG and CDBG-CV funds for Fiscal Year 202 4-25, as well as the proposed Substantial Amendments for the proposed reprogramming of Community Development Block Grant funds from Fiscal Year 2021 -22, Fiscal Year 2022 - 23 funds & CDBG-CV funds for Fiscal Year 2020-21.
F. CDBG and CDBG-CV funds allocated to the City for Fiscal Year 2024-2025 are proposed to implement the programs described in this resolution.
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ATTACHMENT B
0160144_KB2_20240529_AY16
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS:
SECTION 1. The uses of CDBG funds for Fiscal Years: 2024-25, 2021-22, 2022-23, 2023-24, and CDBG-CV funds for Fiscal Year 2020-21 are hereby approved and authorized for the following programs:
Name of Program Amount
1. Alta Housing – SRO Resident Support Services Program. Provide in - house case management and counseling services to residents at Barker Hotel and Alma Place.
$11,575
2. Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program. Advocate for the rights of seniors and disabled residents in long term care facilities.
$7,575
3. LifeMoves – Case Management. Provide case management services to Opportunity Services Center and Hotel De Zink clients in locating housing and/or employment and be connected to benefits.
$28,847
4. Silicon Valley Independent Living Center – Case Management. Provide case management services to low-income individuals with disabilities to secure affordable and accessible housing.
$14,075
5. Project Sentinel – Fair Housing Services. Provide fair housing services including complaint investigation, counseling, advocacy, and community education
$15,575
6. WeeCare/Upwards - a microenterprise business that will provide Palo Alto childcare business improvement services. $120,000
7. Rebuilding Together Peninsula – Safe at Home. Provision of critical health and safety related home repair needs for low-income Palo Alto homeowners.
$73,585
8. Community Work Group/Abode – Alma Garden. 10 LMI households will benefit from apartment unit improvements. $404,800
9. Fire Station – Sidewalk Improvements Project. Reconstruct the sidewalk, curbs, and curb ramps to current ADA accessibility standards at the intersection area of Meadow Drive and Middlefield Road. $62,645.61
10. Homekey Palo Alto – Recreation Project. This project will provide a recreation area and recreation equipment at the HomeKey Palo Alto shelter.
$185,000
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ATTACHMENT B
0160144_KB2_20240529_AY16
11. CDBG Program Planning and Administration $114,730
Total CDBG Funds $1,037,807.61
12. CDBG-CV MOVE Mountain View – Safe Parking Program $110,000.00
13. CDBG-CV Program Planning and Administration $9,478.74 Total CDBG-CV Funds $119,478.74
SECTION 2. The total amount set forth under Section 1 of this resolution represents the proposed allocation of $513,653 in CDBG funds from the United States Department of Housing and Urban Development (HUD) for Fiscal Year 2024 -2025, $60,000 in anticipated program income to be receipted in Fiscal Year 2024 -25 from Alta Housing ( previously known as Palo Alto Housing Corporation), and a total of $464,154.61 in prior years' resources (FY 2021-22 $191,018.05, FY 2022 -23 $269,435.96, FY 2023- 24 $3,700.60) from canceled projects and remaining unspent funds of closed completed projects. Substantial Amendments are required for FY 2021- 22 CDBG, FY 2022- 23 CDBG, and CDBG -CV Funds. Available CDBG -CV funds total amount of $119,478.74, including unspent funds from the canceled LifeMoves-COVID-19 Testing project ($34,200.50) and unspent CDBG-CV Planning & Administration funds ($85,278.24).
SECTION 3. The City staff is hereby authorized to submit the Annual Action Plan to Fiscal Year 2024-2025, CDBG Substantial Amendment to Fiscal Year 2021-22 & CDBG Substantial Amendment to Fiscal Year 2022-23 and CDBG-CV Substantial Amendment to Fiscal Year 2020-21 Annual Action Plan, update and appropriate funding to HUD, and such money shall be spent as set forth in this resolution. The Mayor, City Manager, and any other designated City staff or officials are hereby authorized to execute such application forms and any other necessary documents to secure these funds. The City Manager or designee is authorized to sign all necessary grant agreements with the program providers set forth in Section 1.
SECTION 4. The City staff is hereby authorized to draft and execute loan documents and a regulatory agreement to secure a $404,800 loan to Community Working Group/Abode for the Alma Gardens Rehabilitation project.
SECTION 5. The funding amounts set forth in Section 1 of this resolution are based on final allocation amounts from the Federal Fiscal Year 2 024-25, Fiscal Year 2021 -22, Fiscal Year 2022-23 & Fiscal Year 2023-24 & CARES Act (CDBG-CV) Fiscal Year 2020-21, HUD appropriations; City Staff is authorized to adjust increasing or decreasing the funding amounts set forth herein as consistent with the adopted Citizen Participation Plan. //
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0160144_KB2_20240529_AY16
SECTION 6. The City Council hereby finds that the Fiscal Year 2024-25, Fiscal Year 2021- 22, Fiscal Year 2022-23 & Fiscal Year 2023-24 & CARES Act (CDBG-CV) Fiscal Year 2020-21, CDBG & CDBG -CV program authorized under Section 1 of this resolution is not a project under the California Environmental Quality Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that may be required, under CEQA and the National Environmental Policy Act (NEPA), for each project under the Fiscal Year 2024-25 CDBG & CDBG- CV program prior to the release of funds for any such project.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
__________________________ __________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ __________________________
Assistant City Attorney City Manager
__________________________
Director of Planning and
Development Services
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1 Attachment C: Human Relations Commission Review Summary The CDBG federal allocations for FY 2024-25 were not known at the time of the HRC public hearing on February 8, 2024. For budgeting purposes, staff estimated the City’s HUD entitlement grant for FY 2025 as a 0.8% reduction from the entitlement grant amount from previous year FY 2023-2024. Therefore, the total amount considered by the HRC as available for CDBG allocation FY 2024-25 was $1,122,415.01, including the estimated FY 2024-25 entitlement grant ($510,000), estimated program income ($60,000), and estimated unspent funds from prior years ($552,415.01). The estimated total available in CDBG-CV funding for FY 2024-25 is $119,478.74, including unspent funds from the canceled LifeMoves-COVID-19 Testing project ($34,200.50) and unspent CDBG-CV Planning & Administration funds ($85,278.24).
The HRC considered the funding recommendations of the HRC Selection Committee 1 and voted unanimously to recommend Council approval of the draft FY 2024-25 AAP.
The HRC discussed proposed funding allocations based on the program budget, availability of additional resources, HUD spending caps, and the total available CDBG and CDBG-CV funds. Key points of the HRC discussion included:
•A summary of the application selection process, reasons for selection, and agency capacity;
•A summary of HRC Selection Committee deliberations;
•A summary of the HRC Selection Committee’s recommended Contingency Plan and clarification of the desire to support LifeMoves at a level closer to half their requested amount, if feasible;
•Information on the definitions of income levels and income limits, which are influenced by family size, varying by county (Palo Alto uses HUD’s FY 2023 Income Limits Area for Santa Clara County Metropolitan area 2, effective May 15, 2023, with HUD's acronym for low-income limits being LMI);
•Consideration of increasing funding toward homelessness services in future funding years if it could be learned if CDBG funds directly resulted in the reported 25% decrease in homelessness in Palo Alto in 2023 year;
•Clarifications on unspent funds, which are the result of applicants cancelling approved projects, not using all of their available allocation, no longer needing their available allocation, or remaining funds being left due to the lifting of COVID-19 mandates; and •Clarifications on the reduction of funds to CDBG Program Administration resulting from the interplay of the 20% spending cap on this funding category combined with a forthcoming reduction in program income receipts for FY 2024-25. 1 February 8, 2024 Human Relations Commission staff report:
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=d37a6bbc-0569-4d6b-91db-05b16a3dabc0 2 Source: https://www.huduser.gov/portal/datasets/il/il2023/2023summary.odn Item 9
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2 The HRC’s recommended contingency plan is as follows:
A. If more funds are received than estimated:
1.Ensure funding caps are met for Public Services and Planning & Administration categories;
2.Increase LifeMoves' FY 2024-25 allocation to $34,960, or as near as feasible;
3.Retain the currently recommended funding for Project Sentinel;
4.If there are surplus funds available, allocate additional funding proportionally to other Public Services applications based on their recommended shares, provided they are not fully funded;
5.Allocate any remaining un-capped funds to the Public Facilities project(s).
B. If less funds are received than estimated:
1.Ensure funding caps are met for Public Services and Planning & Administration categories;
2.Decrease funding across each of the Public Services applications proportionate to the overall decrease in funding;
3.If possible, maintain full funding for both Housing Rehabilitation projects and the Economic Development project; and
4.Decrease un-capped funds from the Public Facilities project(s).
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 18, 2024
Report #:2403-2825
TITLE
PUBLIC HEARING/QUASI-JUDICIAL. Buena Vista Mobile Home Park Redevelopment/3980 El Camino Real [24PLN-00041]: Provide Direction on Applicant’s Request for Amendments to the Existing Regulatory Agreement and Proposed Application for a Streamlined Housing Development Review to Allow the Redevelopment of the Buena Vista Village Mobile Home Park. The Proposed Development Would Result in Two Parcels, One Featuring a new 61-Unit, 100% Affordable Housing, Multi-Family Apartment Building and Associated Work Within the Right-of-Way; and the Second Parcel Featuring a Renovated 44-Unit Mobile Home Park, Which is Under State Jurisdictional Authority. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In-fill Development). Zoning District: RM-20.
RECOMMENDATION
Staff recommends that Council take the following actions:
1. Provide feedback on the development proposal;
2. Provide feedback on the proposed amendments to the regulatory agreements; and
3. Return on the August 5, 2024, consent calendar following the completion of the environmental analysis for a decision on the Streamlined Housing Development Review application and to authorize the City Manager to Execute the amended Regulatory Agreements.
EXECUTIVE SUMMARY
In December 2023, the Santa Clara County Housing Authority (SCCHA) submitted a compliant pre-application in accordance with Senate Bill (SB) 330. This pre-application freezes development standards for the proposed redevelopment and requires streamlining. On February 15, 2024, the Santa Clara County Housing Authority (SCCHA) submitted a formal application for Streamlined Housing Development review. The proposed project includes an affordable 61-unit apartment development on a portion of the subject parcel located at 3980 El Camino Real (see Attachment A, Location Map). The applicant has filed a separate, associated, Vesting Tentative Map Application with the City to subdivide the existing lot into two parcels.
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The new lot to be created would be developed with 61 apartment units and the remaining existing lot would be rehabilitated with 44 mobiles homes. Rehabilitation of the mobile home parcel is processed through the State Department of Housing and Community Development (HCD). The project is a housing development project in accordance with the Housing Accountability Act and qualifies for a Density Bonus and associated concessions, waivers, and allowances under state law (California Government Code §65915) and PAMC Chapter 18.15.
To align with the proposed redevelopment, the project also includes modifications to an existing 2017 regulatory agreement between the City, County, and County Housing Authority (see Attachment D, Existing 2017 Regulatory Agreement).1 The project plans are included in Attachment H and the proposed Regulatory Agreements are included in Attachment C. The City, acting as the lead agency in accordance with the California Environmental Quality Act (CEQA), anticipates that the project will be exempt from CEQA per CEQA Guidelines Section 15332 (infill exemption). The documentation to support this exemption is currently being prepared and will be completed prior to a decision on the project.
SCCHA must submit applications to meet funding deadlines in the latter half of August 2024.
This funding is critical for the project. The funding applications require approvals by the City and the County prior to application submission by SCCHA.
BACKGROUND
In June 2016, Council approved a Memorandum of Understanding (MOU) Between the SCCHA, the County of Santa Clara, and the City of Palo Alto to provide up to $14.5 million in City affordable housing funds in support of SCCHA’s acquisition of the Buena Vista Mobile Home Park for deed-restricted affordable housing. The SCCHA purchased the park in 2017 with the support of these funds.
After a park conditions assessment, SCCHA found that the park contained an array of hazards.
With the purchase, SCCHA agreed with the City and County to improve and protect the park as affordable housing through a regulatory agreement which focused on maintaining affordable housing, enhancing the habitability of the property, avoiding resident displacement, and investing in rehabilitation and improvements. The regulatory agreement includes an improvements timeline and some expected outcomes. Since the onset of the agreement, SCCHA has focused on the people and the infrastructure of Buena Vista. They have:
• Removed trash and abandoned cars,
• Conducted necessary home repairs,
• Installed new utilities,
• Replaced aged sewer and water lines,
1 City Attorney Report to City Council September 11, 2017, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2017/staff-report-8493-buena-vista-mou-amendment.pdf.
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• Replaced paving,
• Demolished abandoned coaches (i.e., mobile homes),
• Capped unused utilities for safety,
• Provided spaces for services and an afterschool program, • Relocated Park residents as needed (e.g., to new mobile homes), and • Worked to bring the Park into compliance with various laws.
Council held a study session on February 13, 2023, in which SCHAA provided an update on these ongoing efforts at the site. Following submittal of the formal application for the proposed redevelopment of the 61-unit apartment building, Council held another study session on March 4, 2024, to provide early input on the redevelopment. The analysis section of this report includes key comments from Councilmembers at the March study session, which primarily focused on the relocation plan for existing tenants.
Project Description
SSCHA submitted a formal application for Streamlined Housing Development review for a 61- unit apartment development on a portion of the existing Buena Vista Mobile home site (Application 24PLN-00041). The proposed apartments are located within a single, four-story (37 feet), 63,736 sf building (1.0:1 FAR). Seventy-nine (79) parking stalls and one car loading space is provided in accordance with the code. Attachment A includes a location map showing the zoning designation of the site and surrounding areas. Attachment H shows the project plans for this development.
On April 30, 2024, SCCHA submitted a related application for a Vesting Tentative Map to subdivide the existing parcel into two parcels (24PLN-00129). Under the existing Regulatory Agreement, the property must maintain, at minimum, 100 affordable units. However, the existing spacing of mobile homes does not meet current state rules regarding spacing and setbacks. The introduction of an apartment building allows the property to both maintain the minimum number of affordable units, while allowing enough space to retain 44 mobile homes.
The tentative map subdivides the existing parcel to better finance the 61 apartments and 44 mobile homes separately.
The total development, between the apartment building and mobile home units, would be 105 units; 40% of units will be provided at a rate affordable to households earning 30% of Area Median Income (AMI), 40% of the units would be provided at a rate affordable to households earning 50% AMI and the remaining 20% would be provided at a rate affordable to households earning 80% AMI.2,3
2 Income limits are based on annual published limits from HCD 3 To avoid displacement of existing tenants, three tenants that currently have an income level that exceeds 80% of AMI will be allowed to continue to rent at the site. Those units are considered as restricted low-income units Item 10
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Revisions to the existing regulatory agreement are necessary in conjunction with the redevelopment to reflect the two individual parcels and their respective ownership entities as well as to reflect the necessary affordability requirements for their respective funding sources.
Requested Entitlements, Findings and Purview:
The following discretionary applications are being requested:
•Streamlined Housing Development Review: The process for evaluating this type of application is set forth in PAMC 18.77.073. Streamlined Housing Development Review applications require a study session with the ARB and recommendations are forwarded to the Planning & Development Services Director for action following the review. Action by the Director is appealable to the City Council if filed within 14 days of the decision.
However, in this case, since the project is also associated with a regulatory agreement that requires City Council approval, the subject development application is also be presented to the Council for final review and action. Streamlined Housing Development projects are evaluated against specific findings and must be made in the affirmative to approve the project. Failure to make any one finding requires project redesign or denial.
Draft findings for this project are provided in Attachment B. •Tentative Map and Final Map for condominium purposes: The process for evaluating this type of application is set forth in Title 21 of the Palo Alto Municipal Code (PAMC) and California Government Code 66474. The process for approval of a Tentative Map for a condominium subdivision is outlined in PAMC Chapter 21.12. Tentative maps require Planning and Transportation Commission (PTC) review to determine whether the amended subdivision is consistent with the Subdivision Map Act (in particular Government Code 66474), Title 21 of the Palo Alto Municipal Code, the Palo Alto Comprehensive Plan, and other applicable provisions of the Palo Alto Municipal Code and State Law. The PTC’s recommendation is forwarded to the City Council for final approval.
Council’s purview of the development application is limited by the following state law:
•Housing Accountability Act (Government Code 65589.5): The project constitutes a “housing development project” under the Housing Accountability Act. The Housing Accountability Act Section 65589.5(j) requires that when a proposed housing development project complies with applicable, objective general plan and zoning standards, a local agency may only deny or reduce the density the project or reduce its density if the agency first finds that (1) the development would have a specific adverse impact on public health or safety unless disapproved, or approved at a lower density; because the tri-party regulatory agreement requires that future units will be made available to lower income households at affordable rents after any initial moderate or high-income households voluntarily vacate their units.
After any initial moderate or high income households vacate their units, those units will continue be restricted as low-income units with affordable rents for at least an additional 55 years or greater.
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and (2) there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, other than the disapproval, or approval at a lower density.
Notwithstanding the subject project being subject to the Housing Accountability Act, this project is also reliant upon and subject to City Council’s endorsement of the tri- party regulatory agreement.
•Housing Crisis Act (Senate Bill 330; Government Code 65589.5): SSCHA filed a compliant SB 330 pre-application on December 19, 2023. A formal application was filed on February 15, 2024, which is within the required 180 days from submittal of the compliant pre-application. Therefore, review of this project shall be in accordance with applicable regulations as set forth on December 19, 2024. Additionally, no more than five hearings may be held for the proposed project.
•Rehabilitation of the remaining parcel with mobile homes is processed by the state department of Housing and Community Development. Therefore, development of the 44 units on the mobile home parcel is not subject to the City’s development review process. However, HCD does require signoff from the local agency prior to approval to ensure that requirements related to public services and service connections have been met.
Previous ARB Hearing
The Architectural Review Board (ARB) held a study session on May 2, 2024 to provide feedback on the project’s consistency with the City’s objective standards. Key feedback from ARB members included the following:
•Further evaluate the privacy for ground floor units by raising the units by a foot, adding privacy fencing, revising the sills, or providing better landscaping. •Consider refinements to the interior floor plans to:
oProvide better access to the ends of the building
oConsider a more centrally located entrance area, trash room and laundry room oReconsider including the junior one-bedroom unit design and the windows on the inner corner units of the 2-bedrooms.
•Consider whether some, even if not all, units could have private open space •Provide the required justification of waivers, especially for the parking lot canopy cover exception; really consider options that would increase the parking lot landscaping •Asked that each choice with respect to articulation, color, and materials has an architectural reasoning and a stronger architectural logic to the various plane changes.
The applicant’s incorporation of ARB feedback is provided in the following section, under the Objective Design Standards heading.
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ANALYSIS
Staff from all relevant departments reviewed the Streamlined Housing Development Review application for consistency with the municipal code and all other relevant state and federal regulations. Various departments are still finalizing their review of the current project plans.
Standard draft conditions have been incorporated into the draft record of land use action at this time; however, final conditions of approval may be modified prior to Council’s decision in August. Overall, staff finds that the project conforms to relevant plans, policies and guidelines relevant to the proposed project or otherwise requests concessions and waivers in accordance with state regulations.
Comprehensive Plan and Design Guidelines
There are no specific plans or design guidelines that are relevant to the proposed project.
Staff’s review of the project finds it consistent with the Comprehensive Plan, including the land use designation and applicable goals and policies. The project site has a multi-family land use designation, which permits multi-family residential uses and expresses that net densities will range from 8 to 90 units per acre. The density of the proposed 61-unit development would be 36 dwelling units per acre (DU/AC) based on the proposed parcel boundaries in accordance with the planned subdivision map, which aligns with the Comprehensive Plan. Overall, the development across the two parcels would equate to a density of 23 DU/AC.
Housing Element
Based on guidance from HCD, the City was able to report 117 very low-income units as qualifying preserved housing units for the fifth cycle regional housing needs assessment. As the proposed project does not result in any net new affordable units, there are no additional units to claim for the current housing cycle.
Zoning Compliance4
A table summarizing the proposed project’s consistency with applicable RM-20 zoning standards is included in Attachment E. The proposed project complies with all applicable codes or is seeking, through the state density bonus provisions, permission to deviate from certain code standards in a manner that is consistent with the Zoning Ordinance and state density bonus law. Specifically, the applicant is seeking a density bonus, four concessions and six waivers as detailed below. Attachment G summarizes the justifications for the requested concessions and waivers. Separately, the project is eligible for an 80% density bonus in accordance with California Government Code §65915(d)(1)(G). •Density Bonus: 36 DU/AC, where 20 DU/AC is permitted. This is an 80% density bonus, which is permitted for a project providing the amount of deeply affordable units proposed.
•Concession 1: Façade Breaks (less than 2 feet in depth) 4 The Palo Alto Zoning Code is available online: bit.ly/PAZoningCode Item 10
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•Concession 2: Ground Floor Unit Direct Connection to Path or Common Open Space
18.24.020(b)(4)(E)
•Concession 3: Percentage of Frontage Dedicated to Utilities and Parking in accordance with 18.24.06(C)(7)(A)
•Concession 4: Private Open Space (None where 50 sf per unit is required) •Waiver 1: Floor Area Ratio (1.01:1 where 0.5:1 is allowed) •Waiver 2: Height (37 feet where 30 feet is allowed)
•Waiver 3: Site Open Space (24% where 35% is required)
•Waiver 4: Tree Canopy Cover in Parking Lot (future coverage of 47% where 50% is required)
•Waiver 5: Reduction in Street Trees (none provided along the mobile home project frontage where one per every 30 feet is required due to Valley Water easement restrictions)
•Waiver 6: Street width (28 feet where 32 feet is required) State Density Bonus Law and Chapter 18.15 Compliance
The project is a qualifying project for state density bonus in accordance with California Government Code §65915(b)(1)(A) which includes projects that sell at least 10% of the base number of dwelling units of a housing development to persons and families of lower income, as defined in Section 50079 of the Health and Safety Code. In accordance with AB 1763, which modified state density bonus law (California Government Code §65915), an applicant providing 100% of units at a rate affordable to low income tenants, excluding managers units, is eligible for an 80% density bonus except that 20% percent of the units may be for moderate income households as defined in the Health and Safety Code. SCCHA is providing 60 units at a rate affordable to low income (80% of AMI) or lower plus one manager’s unit. Per§65915(d)(1)(G) and PAMC §18.15.050(c)(iii), the project is also eligible for four concessions or incentives. In general, the City must provide an unlimited number of waivers from development standards that would physically preclude the project from being built at the allowed density. The requested waivers and concession are summarized above in the zoning consistency analysis.
Under state density bonus law, the City may request reasonable documentation that establishes eligibility for concessions and waivers; however, the City cannot require the preparation of a study or report and the burden is on the City to identify a basis to deny a requested concession or waiver. For concessions, the City may request documentation supporting the cost reduction achieved through the concession. For waivers, the City may request documentation that explains why the development standard would physically preclude the project from being constructed at the proposed density. Attachment G provides the applicant’s documentation for the requested waivers and concession. For purposes of the Housing Accountability Act, the use of concessions and waivers under density bonus law is not a basis for finding the project inconsistent with the City’s objective standards. In other words, the City cannot deny a project for being inconsistent with a development standard if the applicant has requested a waiver or concession from that standard.
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Objective Design Standards
An analysis of the project’s consistency with the objective design standards is provided in Attachment F. The project is consistent with the objective design standards except where waivers or concessions are requested in accordance with state density bonus law. Therefore, the project is eligible from streamlining in accordance with the City’s Streamlined Housing Development review process. In accordance with this process, the ARB reviews applications and provides feedback at a single study session to improve consistency with the objective design standards. A summary of the ARB’s key feedback is provided in the Background Section. The project made the following modifications based on the ARB’s feedback:
•Windows for ground floor units have been modified to create more privacy for units •An additional access point out to Los Robles and closer to the parking lot has been provided
•Parking lot landscape planting has been increased from 33% to 47% shading to improve compliance with the objective standards for landscape planting of parking lots under
18.54 of the PAMC.
•The required justifications for waivers and concessions have been provided •The articulation, color, and materials placement have been refined. Specifically, material and color changes correlate more closely now with the plane changes. The color and material palette has also been revised to add visual interest and define spaces or features. For example, to define the amenity space on the ground floor and to highlight the projections in the facade. •A car loading space has been added in accordance with the objective design standards Requests for private open space was mixed. The project has not provided private open space due to the increased project costs. In accordance with state density bonus law this is requested as a waiver as the additional costs would preclude construction of the project at the density proposed. Additional information is provided in the justifications of waivers and concessions.
Major modifications to the ground floor layout have also not been incorporated into the design.
SCCHA has stated that modifying the lobby to be more centrally located is less desirable for residents as it presents more security concerns if the lobby is internal to the project site. SCCHA indicated that the residents provided input during the design process and had specifically requested that this be located close to the entrance for security purposes.
Multi-Modal Access and Parking
The proposed project creates a secondary access point off of Los Robles for vehicles. While providing only one curb cut from Los Robles would be better from a bicyclist/pedestrian perspective, this addition ensures better circulation on site and reduces the volume of traffic traveling along the private road where residents are crossing to access shared amenities.
Parking is provided on site and exceeds the minimum requirements for standard parking spaces as required in accordance with state regulations for state density bonus projects (California Government Code 65915(p)(1)) by providing 78 parking spaces where 77 are required. A car loading space is required in accordance with the Zoning Code for projects of more than 50 units and is provided in one additional space on site. Currently many residents park along the Item 10
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frontage; therefore, the project improves the existing condition by providing more parking on site and utilizing the frontage to improve the pedestrian connection. An access easement over the sidewalk will be required as a condition of approval of the project and incorporated into the proposed tentative map. Bicycle parking is provided at grade and a pathway meeting the minimum requirements for pike/ped access is provided.
Tree Protection and Removal
The proposed project removes 60 trees that are currently located on the project site (both parcels) to accommodate the proposed redevelopment. The project proposes to plant 65 new trees across both parcels in replacement. In-lieu fees would also be required in accordance with the city’s no net loss of canopy requirements.
Tree 75 of the arborist report is an oak tree growing through an existing mobile home. The City’s arborist and the applicant’s arborist have discussed this tree removal and the reasoning for removal to determine whether any feasible alternatives would allow for preservation.
Ultimately, due to the level of disturbance that would be required both during demolition and construction, the City’s arborist agrees with the findings of the applicant’s arborist report that this tree would need to be removed. In particular, the existing conditions provide artificial support for the tree that would be removed as a result of the project (the existing mobile home) and the proposed construction requires more extensive excavation of this drive aisle area to provide the necessary compaction to support the weight of emergency vehicles since this also serves as an emergency vehicle access. Some of this additional reasoning was discussed in meeting with the project arborist and City staff. The City has asked that the arborist report be updated prior to approval to fully reflect this reasoning in order to justify the removal.
Additionally, some residents and the city’s arborist expressed that the Lombardy poplar tree proposed on the HCD portion of the property should be revised to a more appropriate tree species. SCCHA intends to update the species for plans that are submitted to HCD.
Regulatory Agreement
Affordable housing projects often involve a regulatory agreement between parties, with a long, fixed term and provisions to ensure affordability is maintained, and frequently include an option for one of the parties to purchase the property towards the end of the term at a minimal cost. The original regulatory agreement for the Buena Vista Mobile Home Park (referred to within this report as the ”2017 Regulatory Agreement”), executed in 2017, was an agreement between the Santa Clara County Housing Authority, the City of Palo Alto, and the County of Santa Clara. Key provisions of the original 2017 regulatory agreement included:
•A 75-year term,
•Commitment to maintaining the property as an affordable housing resource, •Enhancing the habitability of the property,
•Avoiding displacement of residents currently residing at the property, Item 10
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•Relocating 8 mobile homes and 2 studio units located on leased property, •Investing at least $10 million in rehabilitation and improvements, •Maintaining a minimum of 100 residential units or mobile home spaces, and •Providing an annual report and financial audit.
In order to secure project financing, the parties will need to either change the existing Regulatory Agreement to enter into two new regulatory agreements for the apartments and mobile homes which is needed to secure project financing. Specifically, the lot will be split into two parcels with new assessor parcel numbers (APN), each with a distinct financing structure.
Since the apartment financing will include low-income housing tax credits (LIHTC) financing, it will involve a lender, investor, and tax credit allocation committee (TCAC) and regulatory agreements that will affect the apartment parcel. To attract lenders and investors, the City’s Regulatory Agreement for the apartment parcel must align with the apartment's APN and only cover the apartment improvements. Similarly, the mobile homes will have HCD financing and regulatory agreements specific to the mobile homes parcel/APN. This modification to the site necessitates terminating the current 2017 Regulatory Agreement and “amending it” to replace it with two new Regulatory Agreements.
The Housing Authority has applied for a Vesting Tentative Map to create these two parcels, one for the apartments and one for the mobile homes. The apartment improvements will be owned by a separate legal entity, a limited partnership, distinct from the entity that will own the mobile homes improvements.
Key Provisions of Proposed Regulatory Agreements
The table below highlights the key provisions of the proposed new Regulatory Agreements alongside the original Regulatory Agreement. In the table, “Owner” refers to the Housing Authority.
Original 2017 Regulatory
Agreement
Proposed Regulatory Agreements
TYPE Mobile Homes Apartment Building Mobile Homes
UNITS 100 residential units or
mobile home spaces
60 affordable units + 1
unrestricted manager’s
unit
44 mobile home
spaces5
TERM 75-year term SAME SAME
RENT •Households with incomes
<30% AMI, monthly rent
≤one-twelfth of 30% of
30% AMI
•Households with
incomes <30% AMI,
monthly rent ≤one-
•Households with
incomes <30%
AMI, monthly rent
5 The project is proposing 61 apartments and 44 mobile home units for a total of 105 units. This will result in 60 affordable apartments plus one manager’s apartment and 40 affordable mobile home units, leaving four unregulated, non-manager mobile homes. The unregulated mobile homes can be rented to existing residents who are over-income and wish to rent at Buena Vista Mobile Home Park.
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Original 2017 Regulatory
Agreement
Proposed Regulatory Agreements
•Households with incomes
>30% AMI - ≤50% AMI,
monthly rent ≤ one-
twelfth of 30% of 50%
AMI
•Households with incomes
>50% AMI-<80% AMI,
monthly rent ≤one-
twelfth of 30% of 60%
AMI
•Households with incomes
>80% AMI-<120% AMI,
monthly rent ≤ one-
twelfth of 30% of 110%
AMI
•Households owning
mobile home and making
mortgage payments,
mortgage payments and
property taxes,
assessment and insurance
premiums payable for
mobile home will be
deducted in determining
affordable rent
twelfth of 30% of
30% AMI
•Household with
incomes >30% AMI -
≤50% AMI, monthly
rent ≤ one-twelfth of
30% of 50% AMI
•Households with
incomes >50% AMI-
≤80% AMI, monthly
rent ≤ one-twelfth of
30% of 80% AMI
•Households with
incomes >80% AMI-
≤120% AMI, monthly
rent ≤ one-twelfth of
30% of 120% AMI
≤one-twelfth of
30% of 30% AMI
•Households with
incomes >30%
AMI - ≤50% AMI,
monthly rent ≤
one-twelfth of
30% of 50% AMI
•Households with
incomes >50%
AMI-≤80% AMI,
monthly rent ≤
one-twelfth of
30% of 80% AMI
•Households with
incomes >80%
AMI-≤120% AMI,
monthly rent ≤
one-twelfth of
30% of 120% AMI
AFFORDABILITY •≥40% of units rented to
households with incomes
<30% AMI
• ≥40% of units rented to
households with incomes
<50% AMI
•Remainder of units
available to households
with incomes ≤80% AMI
SAME SAME
REINVESTMENT •If property sold, proceeds
will be reinvested in the
City to create affordable
housing.
SAME SAME
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Original 2017 Regulatory
Agreement
Proposed Regulatory Agreements
•If sold to party
unaffiliated with Housing
Authority and not used
for affordable housing,
then an amount equal to
(a) the amount not repaid
to City and County for
loans and (b) ≥ 52% of
total appreciation value
will be reinvested in City
to create affordable
housing.
•If sold to party
unaffiliated with Housing
Authority and used for
affordable housing, then
(a) 52% of total
appreciation value will be
applied as a reduction to
the purchase price and (b)
the Owner will repay the
City and County any
outstanding loan amount.
VACANCY If household increases in
income results in not meeting
affordability percentage
requirements, then Owner
offer vacant units as available
in appropriate affordability
category until percentages
are met.
SAME SAME
EXISTING
RESIDENTS
•If income is >80%AMI-
<120%AMI may continue
to rent or lease at
affordable rent
•If income is ≥120% AMI
may continue to rent or
lease however, upon
written notice, rent may
SAME SAME
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Original 2017 Regulatory
Agreement
Proposed Regulatory Agreements
be adjusted to fair market
rent
RELOCATION •Residents shall not be
displaced before suitable
replacement housing is
available
•All relocation costs to be
paid by Owner (not
resident)
•Residents have the right
to return after any
temporary relocation.
SAME SAME
REPORTING •Annual report on
occupied units, including
household income and
size and rental rate
•Annual financial audit
SAME SAME
The SCCHA has expressed its commitment to delivering the same number of required housing units at the same affordability levels in the new agreements. City staff, County staff, and SCCHA staff will discuss the amendments. City and County staff have had similar comments and concerns when reviewing the Regulatory Agreements and are in close communication (e.g., regular emails, meetings, and phone calls) on this work.
In the proposed regulatory agreements there are draft changes to affordability levels, these are:
•For households with incomes greater than 50% AMI but less than or equal to 80% AMI, a monthly rent less than or equal to one-twelfth of 30% of 80% of AMI, rather than one- twelfth of 30% of 60% of AMI.
•For households with incomes greater than 80% AMI but less than 120% AMI, a monthly rent less than or equal to one-twelfth of 30% of 120% AMI, rather than one-twelfth of 110% AMI.
•There is no language referring to mobile home owners and mortgage payments and the ability to deduct mortgage payments, property taxes, assessment, and insurance premiums in determining affordable rent.
These changes represent SCCHA’s proposed update to the rent calculation methodology to better align with the funding sources that will be in place for both the park and apartments.
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When the parties initially entered into the regulatory agreement in 2017, the funding sources were not yet fully known. As the parties enter into the updated agreements, SCCHA proposes to use the federal Department of Housing and Urban Development (HUD) published area median income levels (AMI) and rent calculation method, which better align with financing sources. The Housing Authority (SCCHA) indicated that impacts to current residents are minimal and vary based on each household's income. Some residents will see a reduction, some residents will see no change, and others will see an increase. For those receiving an increase, the increases will be limited to either 5% or 10% per year until they "catch-up" to the correct affordable rent for their household.
Although it did not result in a change to the regulatory agreement, it is worth noting that the Housing Authority indicates it has invested a much higher proportion of the project’s funding than anticipated under the original agreement (more than double the original amount) and remains committed to seeing the project through.
City staff anticipate returning to Council for approval on Consent in August with the intent to execute an agreement based on the revised terms drafted. County staff have indicated that they will be bringing the Regulatory Agreements before the Board of Supervisors late summer / this fall for their review and approval.
FISCAL/RESOURCE IMPACT
In June 2016, Council authorized the expenditure of $14.5 million in City affordable housing funds to support the Housing Authority’s potential acquisition of the Buena Vista Mobile Home Park for deed restricted affordable housing. The money was utilized to acquire the site in 2017.The redeveloped Buena Vista Community will have two separate development budgets:
one for the mobile home park and one for the proposed apartments. With the State's award of nearly $25 million in Manufactured Housing Opportunity and Revitalization funds, the mobile home park is fully funded. The Housing Authority is continuing to work on the financing plan and funding applications for the apartment building and intends to apply for Preservation & Reinvestment Initiative for Community Enhancement funds in June and tax credits in August.
SCCHA also intend to apply for tax credits at the end of August 2024.
No additional funding is requested from the City at this time. The formal application is a cost recovery project and the SCCHA has paid the required deposit fee in accordance with the municipal fee schedule for processing of this application.
STAKEHOLDER ENGAGEMENT
Van Meter Williams Pollack on behalf of SCCHA began the community engagement process in early 2019 but was disrupted by the COVID pandemic. In the Fall of 2022, SCCHA, Van Meter Williams Pollack, and Associated Right of Way Services, Inc. worked with Engage FORA to resume the community engagement process for the redevelopment of the Buena Vista Mobile Home Park). The Housing Authority reports the engagement process included:
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•4 interactive workshops
•resident advisor 1-on-1s
•3 property tours
•monthly newsletters
•on-site tours of a new coach
•frequent FAQs
•3 resident education sessions
•website updates
•3 community-building events
Through the engagement process, SCCHA reports Buena Vista resident’s having an influence over several aspects of the design, including:
•Colors, material, and architectural style
•Massing and orientation of the apartment building
•The size of the new mobile homes
Residents also reportedly stressed the importance of amenities like play areas, a place for a homework club with computers, indoor and outdoor community gathering and event spaces, a dog run, and garden beds.
SCCHA reports that during the engagement process, some resident questions and concerns were raised, which the agency states it responded to through written Q&A documents in February, April, May, and June 2023. SCCHA indicates a Townhall meeting was held in April 2023, in addition to one on one meetings and workshops. For residents with very specific questions and circumstances, the SCCHA reports corresponded directly with these households.
For some residents, navigating the process has included bringing the Law Foundation, and, in some cases, trusted clergy, into meetings involving housing options and decisions.
Additionally, City staff has met with the SCCHA monthly, and at times weekly, to better understand how resident concerns are being addressed and to partner and assist as appropriate. One example of this was staff leveraging its relationship with a local mental health provider that has attended some Buena Vista-related community events and connected with community members to develop relationships and provide support.
Public Comments
At the Council study session in March 2024, several residents of the mobile home park and interested stakeholders provided comments on the proposed project. Generally, comments focused on the relocation plan and ranged from those interested in having the project approved as soon as possible to improve their existing living condition, to those that felt that the residents’ needs were not being met in under the relocation plan. For example, one resident expressed that they requested a three-bedroom unit in the relocation because their current two-bedroom unit did not provide enough space and were not afforded that option.
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Another stakeholder expressed that as a current renter they were not provided the opportunity to become an owner in this relocation plan, which deviated from their original expectations.
There were also comments generally asking the City to reassess its authority with respect to the portion of the site that would be reviewed by HCD. One commenter asked for the private street to be relocated.
At the Architectural Review Board study session in May 2024, two local residents spoke in support of the proposed redevelopment. One resident asked for more clarity on the total number of parking spaces between both parcels, encouraged more clarity on which trees would be removed, asked for reconsideration of the species proposed on the portion of the property subject to HCD purview (specifically discouraging the use of Lombardy Poplar trees). A second stakeholder agreed with the first speaker with respect to trees and expressed that more oak trees should be planted.
ENVIRONMENTAL REVIEW
Because this project involves federal programs, it must be evaluated under both the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA). Under CEQA and NEPA, the project must be considered as a whole, so the City is serving as the lead agency for CEQA, and the Responsible Entity (RE) for NEPA for all aspects of the project (including the mobile homes). The Department of Housing and Urban Development will serve as the lead agency under NEPA. As the RE, the City is responsible for preparing the NEPA evaluation. An Environmental Assessment is currently being prepared in accordance with NEPA and is required to be complete for the release of any federal funds for the project.
ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft Record of Land Use Action
Attachment C: Proposed 2024 Regulatory Agreements
Attachment D: Existing Regulatory Agreement
Attachment E: Zoning Code Consistency Analysis
Attachment F: Objective Standards Consistency Analysis
Attachment G: Project Description and Justification of Waivers Attachment H: Project Plans
APPROVED BY:
Jonathan Lait, Planning and Development Services Director Item 10
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208.8'150.0'70.0'178.0'50.0'178.0'178.0'100.0'60.0'100.0'60.0'50.0'120.0'50.0'120.0'120.0'50.0'120.0'50.0'120.0'50.0'120.0'50.0'120.0'50.0'120.0'50.0'30.9'109.3'52.5'89.2'31.4'32.4'113.9'50.0'109.3'50.3'119.5'50.0'113.9'6.0'44.4'119.6'52.1'119.5'52.1'119.7'119.6'50.0'119.7'50.0'120.0'52.1'120.0'52.1'1.6'1.3'30.7'26.8'100.0'60.0'105.0'105.0'19.1'165.6'55.7'284.1'284.1'169.2'284.1'169.2'194.1'37.2'110.0'162.1'15.7'130.0' 57.7'99.9'231.2'100.3'209.9'165.6'19.1'135.0'115.0'125.0'15.7'105.0' 120.0'55.0'55.0' 31.5'120.0'50.0'120.0'50.0'120.0'50.0'120.0'50.0'100.0'31.4'30.9'120.0'50.9'203.0'51.8'203.0'203.0'51.8'203.0'203.0'51.8'203.0' 220.0'269.1'220.4'268.9' 142.6'162.6'177.4'19.6'18.8'145.9'67.8'34.8'67.9'34.9'67.7'22.8'67.8'22.8'22.8'67.7'22.8'67.7'22.7'67.6'22.8'67.6'67.6'34.8'67.5'34.8'67.6'22.8'67.7'22.8'70.3'31.1'57.3'20.4'18.1'22.7'70.3'22.8'70.3'22.8'70.3'22.8'70.3'22.8'70.3'22.8'70.4'22.8'82.9'24.7'92.9'24.7'92.9'22.8'102.9'13.9'102.9'21.8'3.1'16.0'26.7'99.0'117.2'3.1'16.0'26.7'43.6'255.8'21.0'9.5'14.3'6.4'16.6'.8'15.7'15.7'17.2'1.7'11.0'3.8'16.3'20.5'2.2'6.5'5.6'1.3'133.0'20.4'57.3'20.0'160.7'20.0'57.4'20.4'145.8'4.0'2.2'8.1'61.9'16.7'40.9'69.5'22.7'70.4'22.8'70.4'5.6'1.3'23.9'70.4'26.5'31.6'4.2'31.9'31.6'62.2'9.5'14.3'6.4'16.6'73.7'4.2'31.9'73.7'.8'15.7'15.7'17.2'1.7'11.1'3.8'16.3'20.5'2.2'6.5'27.1'70.4'14.1'20.4'57.4'22.7'70.4'22.7'70.4'22.7'70.4'22.8'70.4'22.7'70.4'22.7'70.4'22.8'70.4'22.7'70.4'22.7'70.4'22.8'70.4'27.1'70.4'18.0'4.0'2.2'8.1'61.9'29.4'69.5'27.1'81.4'22.7'81.4'11.5'7.9'9.9'82.9'107.1'30.3'45.0'8.5'37.0'10.0'5.0'64.0'48.0'8.0'69.0'38.7'12.6'81.2'85.8'74.0'74.0'100.0'100.0'100.0'100.0'64.0'64.0'64.6'64.6'75.5'138.0'173.6'116.0'116.0'35.5'10.0'151.0'72.6'49.2'49.2'138.0'138.0'138.0'91.8'91.8'45.8'48.0'50.2'72.5' 113.4'113.4'113.4'113.4'113.4'56.5'56.5'61.5'62.0'62.0'42.1'18.2'113.2'90.0'54.4'113.8'61.0'113.2'61.5'61.5'113.0'113.0'113.0'113.0'113.0'113.0'60.0'60.0'61.5'61.5' 245.0'245.0'90.0'90.0'57.2'52.0'11.0'35.5'24.0'20.7'7.9'48.6'48.6'7.9'20.7'31.6'20.5'8.0'8.0'53.2'53.2'20.5'31.2'20.0'20.0'9.1'9.1'58.0'58.0'31.5'31.4'31.0'20.3'20.3'8.4'8.4'59.7'59.7'31.8'31.2'30.9'31.9'21.3'21.3'21.0'21.0'75.3'7.8'7.8'9.8'9.8'55.6'55.6'47.1'47.1'30.9'26.5'16.1'16.7'4.8'117.2'30.0'39.3'92.2'81.8'89.0'89.0'89.0'81.8'36.5'53.7'53.7'42.4'30.8'30.4'24.4'24.4'6.8'6.8'54.0'54.0'31.2'
5.6'
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47.3'47.3'2.2'2.2'60.0'135.0'60.0'135.0'60.0'135.0'60.0'135.0' 130.0'208.9'82.6'108.7'60.7'50.35'48.9'21.5'221.7'581.2'581.3'338.9'338.6'3948701730736709399438913925386038683874386238703895 384950851051252038473837
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410430470473480407417427437457450475477
55655856056256456657057257457657858258458658859059255755354954554153753352952552141014105411741214125412641104113412241184114 542
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MACLANEWILKIE WAYEL CAMINO WAYEL CAMINO REAL
VENTURA AVENUEEL CAMINO REALEL CAMINO REALEL CAMINO REALLA SELVA DRIVEMAGNOLIA DRIVE SOUTHVILLA VERAVILLA REAL (PRIVATE)VILLA VISTA (PRIVATE)LOS ROBLES AVENUELA DONNA AVENUECAMPANA DRIVEENCINA GRANDE DRIVEVERDOSA DRIVEVISTA AVENUEWISTERIA LANEVILLA VISTA (PRIVATE)DRISCOLL PLACECAMPANA DRIVEVERDOSA DRIVE
CYPRESS LANE JACOBS COURT (PRIVATE)A DRIVEEL CAMINO REALEL CAMINO REALEL CAMINO REAL RM-20
CS
PF
RM-30
RM-20
RM-20
RM-30
PC-2930
RM-30
PC-5116
PC-4511
CommunityCenter
Tennis Court
KEYS SCHOOL MIDDLE CAMPUS
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.
Legend
Project Site
0' 219'
Attachment A:Location Map
CITY OF PALO ALTOINCORPORATEDCALIFORNIA
P a l o A l t o
T h e C i t y o f
APRIL 16 1894
The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto chodgki, 2024-02-20 08:18:49
(\\cc-maps\Encompass\Admin\Personal\Planning.mdb)
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Attachment A - Location
Map
Item 10: Staff Report
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2 ACTION NO. 2024-__
RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 3980 El CAMINO REAL: STREAMLINED HOUSING DEVELOPMENT AND VESTING TENTATIVE MAP [24PLN-00041]
At its meeting on _________, 2024, the City Council of the City of Palo Alto (“City Council”) approved the Streamlined Housing Development Review for a 61-unit residential rental development and Vesting Tentative Map for the development of a subdivision to create two lots with 44 residential condominium units on a portion of the resulting lot, making the following findings, determinations and declarations:
SECTION 1. Background.
A. On February 15, 2024, Santa Clara County Housing Authority (SCCHA) applied for a Streamlined Housing Development Review application for a 61-unit residential rental development, including the following density bonus waivers and concessions in accordance with state density bonus law:
•Density Bonus: 80% increase in density from 20 du/ac to 36 du/ac •Concession 1: Façade Breaks
•Concession 2: Ground Floor Unit Direct Connection to Path or Common Open Space •Concession 3: Percentage of Frontage Dedicated to Utilities and Parking •Concession 4: Private Open Space (None where 50 sf per unit is required) •Waiver 1: Floor Area Ratio (1.01:1 where 0.5:1 is allowed) •Waiver 2: Height (37 feet where 30 feet is allowed)
•Waiver 3: Site Open Space (24% where 35% is required)
•Waiver 4: Tree Canopy Cover in Parking Lot
•Waiver 5: Reduction in Street Trees
•Waiver 6: Street width (28 feet where 32 feet is required) B. On April 30, 2024, SCCHA applied for a Vesting Tentative Map for the development two subdivide one (1) existing 4.5 acre lot into two parcels (1.69-acres and 2.81 acres ) and for a 44 unit condominium subdivision of the 2.81-acre lot , including a density bonus waiver from street width requirements to permit a minimum 28-foot wide private street. (“The Project”).
C. The project site is comprised of one existing lot (APN No. 127-11-103) of approximately 4.5 Acres (196,020 sf). The site contains a multi-family development with seventy-nine (79) residential units, seventy-five (75) of which are occupied. Single family residential uses abut the site to the north. Multi-family residential units abut the site to the west, and across Los Robles Avenue to the South. Commercial uses abut the site to the east along El Camino Real.
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Streamlined Housing
Findings for Approval
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2 D. Following submittal of the application, Council held a study session on March 4, 2024 to provide early input on the proposed development and to provide an opportunity to hear comments from the public.
E. Following staff review, the Architectural Review Board reviewed the project at a study session on May 2, 2024, to provide feedback on the design.
F. Following the Architectural Review Board hearing, the applicant resubmitted revised plans on May 29, 2024.
G. Following staff review of the Vesting Tentative Map, the Planning and Transportation Commission reviewed the project and recommended approval on _____, 2024, subject to conditions of approval.
H. On June 18, 2024 the City Council held a duly noticed public meeting, at which evidence was considered and all persons were afforded an opportunity to be heard in accordance with the City Council’s policies and procedures.
I. On ___________, 2024 the City Council held a duly noticed public meeting at which evidence was considered and all persons were afforded an opportunity to be heard in accordance with the City Council’s policies and procedures SECTION 2. Environmental Review. The City, acting as the lead agency for the Project, has determined that the project is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guideline section 15332, which provides an exemption for infill development projects. Documentation to support the exemption is available as part of the public record on file with the Planning and Development Services Division.
Section 3. Streamlined Housing Development Review. The design and architecture of the proposed improvements, as conditioned, complies with the Streamlined Housing Development Project Review Process Findings as required in Chapter 18.77.073 of the PAMC. Neither the Director, nor the City Council on appeal, shall approve an application unless it is found that:
Finding #1: The application complies with all applicable and objective standards in the Comprehensive Plan, the Palo Alto Municipal Code, and other City plans or policies.
The proposed project complies with all applicable and objective standards in the Comprehensive Plan and the Palo Alto Municipal Code as detailed in the staff report and in Attachments D, Zoning Consistency, and E, Objective Standards Consistency, except where waivers or concessions are requested pursuant to state density bonus law. In accordance with The Housing Accountability Act as set forth in California Government Code 65589.5(j)(3), the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not Item 10
Attachment B: Draft RLUA
Streamlined Housing
Findings for Approval
Item 10: Staff Report
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2 in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision. Therefore, for the project is compliant with the objective standards.
A summary of the project’s consistency with the Comprehensive Plan is provided in this table. The project is required to comply with the Comprehensive Plan to the extent that the requirements are objective.
Comp Plan Goals and Policies How project adheres or does not adhere to Comp Plan
The Comprehensive Plan land use designation for
the site is Multi-family Residential which allows
for densities ranging from 8 to 40 units per acre
The project adheres to the Comprehensive Plan
by providing multi-family housing on a multi-
family use site. The proposed density is 36 units
per acre which is consistent with this
comprehensive plan land use designation.
Housing Element
Policy 4.3 Implement development standards,
objective design standards, and architectural and
green building standards that encourage new
high-quality rental and ownership housing.
The project complies with the implemented
standards except where requests for waivers or
concessions in accordance with state density
bonus law is provided. The project provides the
necessary upgrades to deteriorating
infrastructure on the site and updates to the
units to provide new high-quality rental and
ownership units while maintaining the
affordability level.
Land Use and Community Design Element
Policy L-2.8: When considering infill
development, work to minimize the displacement
of existing residents
The project is an infill project. A full relocation
plan has been presented to all tenants and
creates options for ownership or rental. The
project replaces more units than it removes.
Policy L-9.2 Encourage development that
creatively integrates parking into the project,
including by locating it behind buildings or
underground wherever possible, or by providing
for shared use of parking areas. Encourage other
alternatives to surface parking lots that minimize
the amount of land devoted to parking while still
maintaining safe streets, street trees, a vibrant
local economy and sufficient parking to meet
demand.
While the project proposes surface parking, the
parking is located at the side of the building and
is not located between the building and the
street. The frontage is still provides a sidewalk
and bike lane and provides street trees and other
greenery along the frontage.
Policy L-9.4 Treat residential streets as both
public ways and neighborhood amenities. Provide
and maintain continuous sidewalks, healthy
street trees, benches and other amenities that
promote walking and “active” transportation.
The project includes a new sidewalk and street
trees as well as new bicycle parking within the
project setback area that promotes active
transportation. This improves the current design,
which provides parking along the project
frontage and does not include a sidewalk.
Transportation Element
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2 Policy T-3.7 Encourage pedestrian-friendly design
features such as sidewalks, street trees, on-street
parking, gathering spaces, gardens, outdoor
furniture, art and interesting architectural details.
The project includes direct connections to the
sidewalk that help to activate the frontage along
Los Robles Avenue in addition to new street trees
and plantings.
Policy T-3.9 Support citywide sustainability
efforts by preserving and enhancing the tree
canopy where feasible within the public right-of-
way, consistent with the Urban Forest
Management Plan, as amended.
The project meets the tree canopy replacement
requirements through on site planting. The
project includes removal of two trees and
replaces with 24 new trees where 7 24-inch box
trees are required in accordance with the canopy
replacement requirements.
Finding #2: Approving the application will not result in a specific, adverse, impact upon the public health or safety, which cannot feasibly be mitigated or avoided in a satisfactory manner. As used in this Section, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
The proposed project would not result in a specific, adverse, impact upon public health or safety. The project complies with all applicable safety requirements with respect to fire safety for the building itself (e.g. ladder access, sprinklers) as well as emergency vehicle access to the site. The project also does not introduce any new changes to streets (e.g. new curves in a roadway) or impacts to line-of-sight that would create a safety hazard.
SECTION 4. Vesting Tentative Map Findings. A legislative body of a city shall deny approval of a Parcel Map, if it makes any of the following findings (California Government Code Section 66474). The City Council cannot make these findings for the following reasons:
1.That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451:
The site is consistent with the Comprehensive Plan as described below.
2.That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans:
There is no adopted specific plan for this project site. The proposed vesting tentative map and related improvements is consistent with the Comprehensive Plan in that it facilitates housing development on a site designated for multi-family use within the urban services area, consistent with Goal 2 of the Housing Element and Goal L1.2 of the Land Use Element. The proposed density (36 DU/AC) is consistent with the allowable density (20 to 40 DU/AC) in the multi-family land use designation as outlined in the Land Use Element. The project replaces 79 existing residential ownership and rental units with 6f1-residential rental units and 44 residential ownership units. The project would be 100% affordable with 40% of units provided at a rate affordable to households earning 30% of Area Median Income (AMI), 40% of the units provided at a rate affordable to households earning 50% AMI and the remaining 20% provided at a rate affordable to households earning 80% AMI. The project improves the city’s jobs Item 10
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2 housing imbalance consistent with the Transportation Element’s goals and policies.
3. That the site is not physically suitable for the type of development:
The Project site is suitable for multi-family residential development in that it’s located within the multi-family zone district on a site designated on the City’s Land Use Map for multi-family use. The proposed resulting parcels meet the minimum code requirements for the RM-20 zone district with respect to lot area, width and depth. The proposed number of condominium units for one of the two parcels complies with the applicable densities set forth in the land use element.
4.That the site is not physically suitable for the proposed density of development:
The proposed development of both parcels would create a total of one-hundred and five (105) multi-family residential units which is 23 dwelling units (DU) per acre (total project site is 4.5 acres). This density complies with the minimum and maximum allowable residential density as calculated for the total site area under the comprehensive plan (20-40 DU/acre = 90-180 DU).
The newly created parcel for the rental units would have a density that exceeds the maximum allowable density for the zoning (20 DU/AC) in accordance with state density bonus law (Assembly Bill 1763) which allows for increased density based on the percentage of BMR units (80% of the base project) and their affordability level. Building, Palo Alto Fire Department, Planning, Transportation, Zero Waste, and Public Works Engineering have reviewed the requested density bonus waiver to permit a minimum 28-foot street width to ensure that all necessary requirements for safety, including but not limited to, fire safety and traffic safety (e.g. curb cut location, turning radius, etc.) have been met as well as to ensure that the street allows for proper function of the site (e.g. trash pickup).
5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat:
The project is located within the built environment that does not contain quality habitat for fish or other wildlife on the site or within the vicinity of the site. An easement along the project frontage contains Barron Creek within an existing underground culvert pipe. An encroachment permit from Valley Water is required as a condition of approval of the project to ensure that the proposed work does not impact the existing infrastructure. The adopted Palo Alto 2030 Comprehensive Plan includes Map N-1, which identified sensitive animal and plant species within the Palo Alto quadrangle, a large geographic area that includes the urban portions along the bay and within the foothills, based on information in the California natural Diversity Database (CNDDB). Based on this map, and the urban nature of the site, the subject property does not contain any habitat for endangered, rare, or threatened species and has not historically supported any of these species.
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2 6. That the design of the subdivision or type of improvements is likely to cause serious public health problems:
The subdivision of this parcel and associated improvements would not have the potential to result in serious health problems. The proposed multi-family use would not include use or storage of hazardous materials and the use is located within the urban environment adjacent to other residential uses. The site is not located on a hazardous waste site pursuant to government code 65962.5.
7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision.
There are no public access easements over the property currently. Therefore, the design of the subdivision will not conflict with any public easements for access through, or use of, the property. Existing public utility easements would be vacated and new public utility easements created as part of the mapping process to reflect modifications to the location of utility infrastructure. A new public access easement would be granted over a portion of the frontage for public access on the proposed new sidewalk. An existing Valley Water easement would be maintained along the frontage and any temporary or permanent improvements within that area requires an encroachment permit from valley water prior to building permit issuance.
SECTION 5. Vesting Tentative Map Approval Granted. Vesting Tentative Map Approval is filed and processed in accordance to PAMC Section 21.13.020 and granted by the City Council under PAMC Sections 21.12 and 21.20 and the California Government Code Section 66474, subject to the conditions of approval in Section 8 of this Record of Land Use Action.
SECTION 6. Final Map. The Final Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map prepared by Sandis Engineering titled “____________,” consisting of _____pages, stamped as received_______, 2024, except as modified to incorporate the conditions of approval in Section 6. A copy of the Vesting Tentative Map is on file in the Department of Planning and Development Services, Current Planning Division. Prior to the expiration of the Vesting Tentative Map approval, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Final Map, as specified in Chapter 21.08, to be prepared in conformance with the Vesting Tentative Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Title 21 and submitted to the City Engineer (PAMC Section 21.16.010[a]).
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2 SECTION 7. Conditions of Approval Streamlined Housing Development Review.
PLANNING DIVISION
1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, "Buena Vista Commons 3980 El Camino Real, Palo Alto, CA 94306” stamped as received by the City on June 3, 2024 on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval.
2. BUILDING PERMIT. Apply for a building permit and meet any and all conditions of the Planning, Fire, Public Works, and Building Departments.
3. BUILDING PERMIT PLAN SET. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit.
4. PROJECT MODIFICATIONS. All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant’s responsibility to highlight any proposed changes to the project and to bring it to the project planner’s attention.
5. LANDSCAPE PLAN. Plantings shall be installed in accordance with the approved plan set and shall be permanently maintained and replaced as necessary. Landscaping along the rear lot line between the project and single-family residential uses shall be planted at a minimum height of 8 feet and maintained as a landscape screen for the life of the project in accordance with the code requirements for objective standards.
6. NOISE THRESHOLDS ON RESIDENTIAL PROPERTY. In accordance with PAMC Section
9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on residential property, a noise level more than six dB above the local ambient at any point outside of the property plane.
7. OPEN AIR LOUDSPEAKERS (AMPLIFIED MUSIC). In accordance with PAMC Section 9.12, no amplified music shall be used for producing sound in or upon any open area, to which the public has access, between the hours of 11:00pm and one hour after sunrise.
8. NOISE REPORT AT BUILDING STAGE. An analysis of the proposed project’s compliance with the City’s noise requirements for the proposed HVAC was prepared as part of the documentation to support a Class 32 categorical exemption. At the time of building permit issuance for new construction or for installation of any such mechanical equipment, if the proposed equipment exceeds the anticipated noise level that was analyzed or is proposed in a location that is closer to the property line, the applicant shall submit an acoustical analysis by an acoustical engineer demonstrating projected compliance with the Noise Item 10
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2 Ordinance. The analysis shall be based on acoustical readings, equipment specifications and any proposed sound reduction measures, such as equipment enclosures or insulation, which demonstrate a sufficient degree of sound attenuation to assure that the prescribed noise levels will not be exceeded.
9. VALLEY WATER ENCROACHMENT PERMIT. An encroachment permit is required prior to any temporary work or permanent improvements within Valley Water’s easement. The project shall comply with any and all requirements of the encroachment permit.
10. PUBLIC ACCESS EASEMENT. A public access easement shall be required for the proposed sidewalk on private property. This may be dedicated through separate instrument and documented on the tentative map and final map or it may be recorded through the subdivision map process.
11. SIGN APPROVAL NEEDED. No signs are approved at this time. All signs, if proposed, shall conform to the requirements of Title 16.20 of the Palo Alto Municipal Code (Sign Code) and shall be subject to approval by the Director of Planning.
12. STANDARD REQUIREMENTS FOR UNANTICIPATED DISCOVERY OF BURIED ARCHEOLOGICAL RESOURCES. No known archeological resources are present on or within the immediate vicinity of the site. However, as noted in the project description and per the City’s standard conditions, in the unlikely event that an archeological resource is unearthed during ground disturbing activities, work in the immediate area should be halted and an archaeologist meeting the Secretary of the Interior’s Professional Qualifications Standards for archeology (National Park Service 1983) shall be contacted immediately to evaluate the find. If the find is Native American in origin, then a Native American representative should also be contacted to participate in the evaluation of the find. The qualified archaeologist, and, if applicable, the Native American representative, shall examine the find and make recommendations regarding additional work necessary to evaluate the significance of the find and the appropriate treatment of the resource. Recommendations could include, but are not limited to, invasive or non-invasive testing, sampling, laboratory analysis, preservation in place, or data recovery. A report of findings documenting any data recovered during monitoring shall be prepared by a qualified archaeologist and submitted to the Director of Planning.
13. STANDARD REQUIREMENTS FOR THE PROTECTION OF NESTING BIRDS. As detailed in the project description and per the City’s standard conditions, vegetation or tree removal shall be prohibited during the general avian nesting season (February 1 – August 31), if feasible.
If nesting season avoidance is not feasible, the applicant shall retain a qualified biologist, as approved by the City of Palo Alto, to conduct a preconstruction nesting bird survey to determine the presence/absence, location, and activity status of any active nests on or adjacent to the project site no more than 14 days prior to scheduled vegetation clearance and/or demolition activities. If nesting birds are found to be present, a suitable buffer (typically a minimum buffer of 50 feet for passerines and a minimum buffer of 250 feet for Item 10
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2 raptors) as determined appropriate by the biologist, shall be established around such active nests and no construction shall be allowed within the buffer areas until a qualified biologist has determined that the nest is no longer active (i.e., the nestlings have fledged and are no longer reliant on the nest).
14. TREE CANOPY REPLACEMENT. Replacement of the tree canopy for the two trees proposed to be removed is required in accordance with Chapter 8 of the municipal code and the City’s Tree Technical Manual.
15. REFUSE. All trash areas shall be covered and maintained in an orderly state within private garages to prevent water from entering into the garbage container. No outdoor storage is allowed/permitted except when brought out to the street for pickup as shown in the plan set.
Trash areas shall be maintained in a manner to discourage illegal dumping.
16. BELOW MARKET RATE (BMR) HOUSING. This project is proposed as a state density bonus project and is subject to a tri-party regulatory agreement between the City of Palo Alto, County of Santa Clara, and Santa Clara County Housing Authority. The project shall conform to the approved regulatory agreement, which shall be recorded prior to issuance of building permit or final map, whichever occurs first. All BMR units constructed under this condition shall be in conformance with the City’s BMR Program rules and regulations.
Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement.
17. RENTER PROTECTIONS. The project is subject to the renter protection requirements set forth in PAMC Section 9.68.050. The applicant shall implement the relocation for existing residents in accordance with the proposed relocation plan as guaranteed in Section 5 of the regulatory agreement, which meets or exceeds these City requirements.
18. ESTIMATED IMPACT FEE. Because the housing is a 100% affordable housing project, development impact fees, citywide transportation impacts fees, and public art in private development fees, do not apply.
19. ENTITLEMENT EXPIRATION. The project approval shall be valid for a period of two years from the date of issuance of the entitlement. If within such two-year period, the proposed use of the site or the construction of buildings has not commenced, the Planning entitlement shall expire. Application for a one-year extension of this entitlement may be made prior to expiration.
20. FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, landscaping and hard surface locations. Contact your Project Planner, Claire Raybould at [email protected] to schedule this inspection.
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2 21. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.
PUBLIC WORKS ENGINEERING
22. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENT. Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Forms- and-Permits
23. OVERVIEW AND GUIDELINES FOR THE REVIEW OF SUBDIVISION PROJECTS. Developer shall familiarize themselves with the guidelines described in the November 2007 revision of the document titled “Overview and Guidelines for the Review of Subdivision Projects”.
Particularly Section II (items 5 through 12) and Section V (items A through C). https://www.cityofpaloalto.org/files/assets/public/planning-amp-development- services/file-migration/current-planning/forms-and-guidelines/overview-and-guidelines- for-the-review-of-subdivision-projects.pdf
24. MAP THIRD-PARTY REVIEW. The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map.
25. STREETWORK PERMIT. The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements.
26. GRADING AND EXCAVATION PERMIT. A Grading Permit is required per PAMC Chapter
16.28. The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note: “THIS GRADING
PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR
REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.”
27. GEOTECHNICAL ENGINEER STATEMENT. The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS Item 10
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2 BEEN REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT”.
28. LOGISTICS PLAN. A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit.
29. ENCROACHMENT PERMIT: Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way.
30. STORMWATER POLLUTION PREVENTION: All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet.
31. C.3 THIRD-PARTY CERTIFICATION: Applicant shall provide certification from a qualified third-party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11.
32. Submit the following as part of the building permit application:
a. Stamped and signed C.3 data form (April 2023 version) from SCVURPPP. https://scvurppp.org/wp-content/uploads/2023/04/SCVURPPP-C.3-Data-Form- _-updated__4-12-2023_clean_fillable.pdf
b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11.
33. C.3 STORMWATER AGREEMENT: The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final.
34. C.3 FINAL THIRD PARTY CERTIFICATION PRIOR TO OCCUPANCY: Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans.
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2 WASTE-GAS-WATER UTILITIES
35. UTILITY DISCONNECT. Prior to issuance of a demolition permit the applicant shall submit a request to disconnect utility services and remove meters. The utilities demo is to be processed within 10 working days after receipt of the request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed.
36. SERVICE CONNECTION APPLICATION. At the time of building permit application the applicant shall submit a completed water-gas-wastewater service connection application - load sheet for the City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., fire in g.p.m., and sewer in fixture units/g.p.d.). The applicant shall provide the new loads and the combined/total loads. Show on the plans by adding a text note: THIS IS AN “ALL-ELECTRIC” BUILDING PROJECT NO NEW GAS SERVICE OR GAS HOOKUPS WILL BE INSTALLED.
37. UTILITY IMPROVEMENT PLANS. At the time of building permit application the applicant shall also submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations, and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities, especially storm drain pipes, and electric and communication duct banks.
Existing duct banks need to be daylighted by potholing to the bottom of the ductbank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing potential conflicts with sewer, water, and gas.
38. AUXILIARY WATER SUPPLY. On the building permit and relevant utility applications, the applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc.).
39. UTILITY LATERALS AND MAINS. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services, laterals as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services/laterals.
40. RPPA. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive.
The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans.
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2 41. RPDA. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD. WD-12A or STD. WD-12B) is required for all existing and new fire water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City’s fire service, within 5’ (feet) of the property line or City Right of Way.
42. BACKFLOW PREVENTER. All backflow preventer devices shall be approved by the WGW engineering division. Inspection by the city inspector is required for the supply pipe between the meter and the assembly.
43. CAPACITY FEES. Prior to building permit issuance, the applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation.
44. FIRE WATER LATERAL. A new water service line installation for fire system usage is required.
Show the location of the new water service on the building permit plans. The applicant shall provide the engineering department with a copy of the plans for the fire system including all fire department's requirements.
45. METERS. Each unit or building shall have its own water meter shown on the plans. Each parcel shall have its own water service and sewer lateral connection shown on the plans.
46. SEWER LATERAL. A new sewer lateral is required, and a profile of the sewer lateral is required showing any possible conflicts with electric/communications duct banks or other utilities.
47. WATER LATERAL. All existing water and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards.
48. SEPARATION. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas, and wastewater mains/laterals/water services/or meters. New water or wastewater services/laterals/meters may not be installed within 10’ of existing trees. Maintain 10’ between new trees and new water and wastewater services/laterals/meters except as otherwise approve in conjunction with utilities and urban forestry, including as shown on the approved plans.
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2 49. COPY OF PLANS. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for the fire system including all fire department's requirements prior to the actual service installation.
50. UTILITY INSTALLATIONS. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater
PUBLIC WORKS ELECTRIC UTILITIES
51. UTILITY EASEMENT REQUIRED. Prior to energization, a public utility easement is required to provide access to the proposed transformers. This can either be provided through separate instrument and documented on the tentative and final map or dedicated through the tentative and final map process.
52. UTILITIES APPLICATION. Changes to existing electric utilities equipment on site, such as the transformer, will require a utilities application. Submit a utilities application and obtain City of Palo Alto Utilities Electrical Engineering approval for the modifications to the electrical system.
53. UTILITY DISCONNECT. The applicant shall submit a request to disconnect all existing utility services proposed for removal, including a signed affidavit of vacancy, on the form provided by the Building Inspection Division. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued after all utility services and/or meters have been disconnected and, as applicable, removed.
54. UTILITIES SHOWN ON LANDSCAPE PLANS. All utility meters, lines, transformers, backflow preventers, and any other required equipment shall be shown on the landscape and irrigation plans and shall show that no conflict will occur between the utilities and landscape materials.
In addition, all aboveground equipment shall be screened in a manner that is consistent with the building design and setback requirements.
55. PERMIT. Contractors and developers shall obtain permit from the Department of Public Works before digging in the street right-of-way. This includes sidewalks, driveways and planter strips.
56. UNDERGROUND SERVICES ALERT. At least 48 hours prior to starting any excavation, the customer must call Underground Service Alert (USA) at 1-800-227-2600 to have existing underground utilities located and marked. The areas to be checked for underground facility marking shall be delineated with white paint. All USA markings shall be removed by the customer or contractor when construction is complete.
57. CITY STANDARDS. All new underground conduits and substructures shall be installed per City standards and shall be inspected by the Electrical Underground Inspector before backfilling.
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58. REQUIRED DECONSTRUCTION. In conformance with PAMC 5.24, deconstruction and source separation are required for all residential and commercial projects where structures (other than a garage or ADU) are being completely removed, demolition is no longer allowed.
Deconstruction takes longer than traditional demolition, it is important to plan ahead. For more information, visit www.cityofpaloalto.org/deconstruction.
59. SALVAGE SURVEY FOR REUSE. A Salvage Survey is required for deconstruction permit applications. The survey shall be conducted by a City approved reuse vendor. The survey submittal shall include an itemized list of materials that are salvageable for reuse from the project. The applicant shall source separate and deliver materials for reuse. Certification is required indicating that all materials identified in the survey are properly salvaged. Contact The ReUse People to schedule this FREE survey by phone (888) 588-9490 or e-mail [email protected]. More information can be found at www.TheReusePeople.org.
Please upload a completed copy to the deconstruction permit.
60. SOURCE SEPARATION FOR RECYCLING. The applicant shall source separate deconstruction materials into specific categories for recycling. Additional staging areas for source separated materials will need to be considered. All materials shall be delivered to one of the City approved materials recovery facilities listed in Green Halo, all records shall be uploaded to www.greenhalosystems.com. For more information, refer to www.cityofpaloalto.org/deconstruction.
PUBLIC WORKS WATER QUALITY
61. Stormwater Best Management Practices (BMPs) associated with refuse management (including actions related to refuse pick-up and the enclosure itself) shall be followed to ensure pollution prevention and preventing potential discharges to the City’s storm drain system. Stormwater BMPS include, but are not limited to, power washing the pavement on both the private property and in the right-of-way and sidewalk a minimum of once per year before the wet season begins on October 1st; utilizing a power washing contractor that is a Recognized Surface Cleaner by the Bay Area Stormwater Management Agencies Association (BASMAA); disposing of wash water according to the Recognized Surface Cleaner certification requirements; and removing any potential trash build-up on a regular basis.
PUBLIC WORKS URBAN FORESTRY
62. PLAN SET REQUIREMENTS. The final Plans submitted for building permit shall include a. SHEET T-1, BUILDING PERMIT. The building permit plan set will include the City’s full- sized, Sheet T-1 (Tree Protection-it's Part of the Plan!), available on the Development Center website at
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2 shall complete and sign the Tree Disclosure Statement and recognize the Project Arborist Tree Activity Inspection Schedule.
b. The Tree Preservation Report (TPR). All sheets of the Applicant’s TPR approved by the City for full implementation by Contractor shall be printed on numbered Sheet T-1 (T- 2, T-3, etc) and included in the sheet index for the plans submitted for building permit.
63. PLANS--SHOW PROTECTIVE TREE FENCING. The Plan Set (esp. site, demolition, grading & drainage, foundation, irrigation, tree disposition, utility sheets, etc.) must delineate/show Type I or Type II fencing around each Regulated Trees, using a bold dashed line enclosing the Tree Protection Zone as shown on Standard Dwg. #605, Sheet T- 1, and the City Tree Technical Manual, Section 6.35-Site Plans; or using the Project Arborist’s unique diagram for each Tree Protection Zone enclosure.
64. SITE PLAN REQUIREMENTS. The following notes shall be included on the site plan for the plans submitted for building or grading permits:
i. Note #1. Apply to the site plan stating, "All tree protection and inspection schedule measures, design recommendations, watering and construction scheduling shall be implemented in full by owner and contractor, as stated on Sheet T-1, in the Tree Protection Report and the approved plans”.
ii. Note #2. All civil plans, grading plans, irrigation plans, site plans and utility plans and relevant sheets shall add a note applying to the trees to be protected, including neighboring trees stating: "Regulated Tree--before working in this area contact the Project Site Arborist at 650-654-3351";
iii. Note #3. Utility (sanitary sewer/gas/water/backflow/electric/storm drain) plan sheets shall include the following note: “Utility trenching shall not occur within the TPZ of the protected tree. Contractor shall be responsible for ensuring that no trenching occurs within the TPZ of the protected tree by contractors, City crews or final landscape workers. See sheet T-1 for instructions.”
iv. Note #4. “Basement or foundation plan. Soils Report and Excavation for basement construction within the TPZ of a protected tree shall specify a vertical cut (stitch piers may be necessary) in order to avoid over-excavating into the tree root zone. Any variance from this procedure requires Urban Forestry approval, please call (650) 496- 5953.”
v. Note #5. “Pruning Restrictions. No pruning or clearance cutting of branches is permitted on City trees. Contractor shall obtain a Public Tree Permit from Urban Forestry (650-496- 5953) for any work on Public Trees”
62. TREE PROTECTION VERIFICATION. Prior to demolition, grading or building permit issuance, a written verification from the contractor that the required protective fencing is in place shall be submitted to the Building Inspections Division. The fencing shall contain required warning sign and remain in place until final inspection of the project.
DURING CONSTRUCTION
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2 63. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor.
64. PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, or (b) landscape architect with written letter of acceptance before submitting the revision to the Building Department for review by Planning, PW or Urban Forestry.
65. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC
8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City ([email protected]) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11.
66. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor.
Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section
2.25. 67. GENERAL. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival.
POST CONSTRUCTION
68. MAINTENANCE. All landscape and trees shall be maintained, watered, fertilized, and pruned according to Best Management Practices-Pruning (ANSI A300-2008 or current version) and the City Tree Technical Manual, Section 5.00. Any vegetation that dies shall be replaced or failed automatic irrigation repaired by the current property owner within 30 days of discovery.
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2 SECTION 8. Conditions of Approval Vesting Tentative Map.
Planning
1. PROJECT PLANS. The Vesting Tentative Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map titled “Vesting Tentative Map 739 Sutter Avenue For Condominium Purposes City of Palo Alto, California”, prepared by BKF Engineers and submitted February 23, 2024, except as modified to incorporate the conditions of this approval.
2. DENSITY BONUS UNITS. The project seeks a waiver of the minimum street width requirements to permit a minimum 20-foot wide private street. In order to qualify for a waiver from this development standard the project shall provide a minimum of two (2) dwelling units at rates affordable to low income households, as defined in Section 50093 of the Health and Safety Code.
3. FINAL MAP COVER PAGE. At such time as the Final Map is filed, the cover page shall include the name and title of the Director of Planning and Development Services.
4. STANDARD CC&R REQUIREMENTS. Section 16.38 of Palo Alto’s Municipal Code provides that all condominium and other “community housing projects” shall submit Covenants, Conditions and Restrictions (CC&R’s) to the City Attorney for approval before issuance of the Final Map. The City Attorney has developed the following standard covenants which shall be included in all CC&R’s.
a. PROPERTY SHALL COMPLY WITH CITY ZONING ORDINANCES. The property, including all common areas, private streets and, parks within the property, shall at all times comply with the City’s Zoning Code and shall not be used for any purpose other than as permitted in the City Zoning Code. b. MODIFICATIONS TO PROPERTY. Any alterations, modifications, or other improvements to the property shall comply with all applicable City Codes. c. MAINTENANACE AND LANDSCAPING OF COMMON AREAS. The Association is responsible for maintenance and landscaping of all parts of the community housing project which are held in common and such maintenance shall be performed to the standard of maintenance prevalent in the neighborhood. (See PAMC Section 16.38.030(a)).
d. TERMINATION OF MANAGER OR MAINTENANCE CONTRACTS. The association may terminate the contract of any person or organization engaged by the developer to perform management or maintenance duties Item 10
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2 three months after the association assumes control of the community housing project or any time thereafter. (See PAMC Section 16.38.030(b).) e. PROTECTION OF STORM WATER FACILITIES. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall alter or modify any storm water facilities in any way including but not limited to placing, maintaining, constructing, or planting any improvements, landscaping or other items, including without limitation decks, stairs, walls, irrigation systems, trees, or any vegetation on any storm water facilities.
f. TRASH DISPOSAL AND RECYCLING AREAS SHALL COMPLY WITH CITY ORDINANCES. All trash disposal and recycling areas shall be kept in a clean and sanitary condition and shall comply with all applicable City Ordinances. g. PROHIBITION AGAINST AIR AND WATER POLLUTION. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall use the property in any way which emits pollution into the atmosphere in excess of environmental standards set forth by City, State, and Federal laws, ordinances, and regulations. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall discharge garbage, trash, waste, or any other substance or materials of any kind into any private or public sewer or waterway on the property in violation of any regulations of any private or public body having jurisdiction over such matters. h. AMENDMENTS TO ORGANIZATION DOCUMENTS REQUIRE CITY APPROVAL.
Any amendments or modifications to the organizational documents shall be submitted to the city attorney for approval. No amendment or modification to the organizational documents shall be effective without prior written consent of the city attorney.
i. CITY’S RIGHT TO ENFORCE COVENANTS AND RESTRICTIONS. The City is hereby granted the right, but in no event the duty, to enforce the covenants and restrictions set forth in this section of the organizational documents. The association shall recognize that it has the primary responsibility for enforcement of the organizational documents and unequivocally guarantees to institute and expeditiously prosecute any required legal action to obtain compliance with all provisions set forth in the organizational documents. j. NO WAIVER OF CITY’S RIGHTS. No failure of the City to enforce any of the covenants or restrictions contained in the organizational documents will in any event render them ineffective.
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2 k. CITY’S REMEDIES TO CURE A BREACH OR VIOLATION. Remedies available to the City to cure any breach or violation of the organizational documents shall be cumulative to any other provisions of law. The City’s failure to exercise any remedy provided for in the organizational documents shall not, under any circumstances, be construed as a waiver of the remedy. l. SEVERABILITY. Invalidation of any one of the City’s required covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect.
5. ADDITIONAL CC&R REQUIREMENT. The CC&Rs shall also include a provision that dictates the responsibilities of tenants for the trash pickup for the townhomes as shown in the approved plan set.
6. FINAL MAP EXPIRATION. A Final Map, in conformance with the approved Vesting Tentative Map, all requirements of the Subdivision Ordinance (PAMC Section 21.16), and to the satisfaction of the City of Palo Alto and its representatives, shall be filed with the Planning Division and the Public Works Engineering Division within two years of the Vesting Tentative Map approval date or this approval will expire. A one-year extension may be granted in accordance with the allowances set forth in the municipal code.
7. DEVELOPMENT IMPACT FEES. The Property Owner or their designee shall pay all applicable development impact fees associated with the proposed development and subdivision prior to issuance of the building permit(s), as detailed in the Streamlined Housing Development Review Approval.
8. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.
Public Works Engineering
9. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS. Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering- Services/Forms-and-Permits
10. OVERVIEW AND GUIDELINES FOR THE REVIEW OF SUBDIVISION PROJECTS. Developer Item 10
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2 shall familiarize themselves with the guidelines described in the November 2007 revision of the document titled “Overview and Guidelines for the Review of Subdivision Projects”. Particularly Section II (items 5 through 12) and Section V (items A through C). https://www.cityofpaloalto.org/files/assets/public/planning-amp-development- services/file-migration/current-planning/forms-and-guidelines/overview-and- guidelines-for-the-review-of-subdivision-projects.pdf
11. MAP THIRD-PARTY REVIEW. The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map.
12. STREETWORK PERMIT. The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements.
13. GRADING AND EXCAVATION PERMIT. A Grading Permit is required per PAMC Chapter
16.28. The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note:
“THIS GRADING PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE
SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.”
14. GEOTECHNICAL ENGINEER STATEMENT: The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS
BEEN REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT”.
15. ENCROACHMENT PERMIT: Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way.
16. LOGISTICS PLAN: A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit.
SECTION 9. Terms of Approval.
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2 1. Streamlined Housing Development Review. In the event actual construction of the project is not commenced within two years of the date of council approval, the approval shall expire and be of no further force or effect.
2. Vesting Tentative Map. All conditions of approval of the Vesting Tentative Map shall be fulfilled prior to approval of a Final Map (PAMC Section 21.16.010[c]). Unless a Final Map is filed, and all conditions of approval are fulfilled within a two-year period from the date of Vesting Tentative Map approval, the Vesting Tentative Map shall expire and all proceedings shall terminate. An extension of time may be granted by the city council after recommendation of the planning commission, upon the written application of the subdivider, prior to the expiration of the Vesting Tentative Map approval, or any previous extension granted. Such extension(s) shall be subject to the maximum limitations set forth in the Subdivision Map Act.
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2 INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
_________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM:
___________________________ ___________________________ Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
PLANS AND DRAWINGS REFERENCED:
Those plans prepared by Van Meter Williams Architects titled “Buena Vista Commons 3980 El Camino Real, Palo Alto, CA 94306” consisting of 94 pages, dated and submitted May 31, 2024.
Those plans prepared by Sandis Engineers titled “Vesting Tentative Map for a Two Lot Subdivision, 3980 El Camino Real” ,” consisting of _____ pages, dated __________,2024 and submitted ________, 2024.
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Attachment C
Proposed 2024 Regulatory
Agreements for Buena Vista
This attachment contains 2 Proposed
Regulatory Agreements for Council
Consideration:
1. Proposed 2024 Regulatory
Agreement for Buena Vista
Mobile Homes
2. Proposed Regulatory Agreement
for Buena Vista Apartments
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Proposed 2024 Regulatory
Agreement for Buena Vista
Redeveloped Park
(Mobile Homes)
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4889-3884-7902 v9
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
County of Santa Clara County
San Jose, CA 95110
Attention: __________
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Space above this line for Recorder’s use.
APN: ___________
AFFORDABLE HOUSING REGULATORY AGREEMENT
AND
DECLARATION OF RESTRICTIVE COVENANTS
(Redeveloped Park)
by and among
POCO WAY HDC, INC.,
THE CITY OF PALO ALTO,
and
THE COUNTY OF SANTA CLARA
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2 This Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (Redeveloped Park) (this “Agreement”) is entered into effective as of ______________, 2024 (“Effective Date”) by and among Poco Way HDC, Inc., a California nonprofit public benefit corporation (“Owner”), the City of Palo Alto, a chartered city and municipal corporation (“City”), and the County of Santa Clara, a political subdivision of the State of California (“County”). The City, the County, and the Owner are collectively referred to herein as the “Parties.”
RECITALS
A. Owner is the owner of the real property located at El Camino Real and Los Robles Road in the City of Palo Alto, Santa Clara County, California, commonly known as the Buena Vista Mobile Home Park, known as Assessor’s Parcel Nos. 137-12-001, 137-11-102 (ptn), 137-11-071 (ptn) (the “Park”). The property comprising the Park has been subdivided to create two parcels. The subject of this Agreement is the parcel described in Exhibit A attached hereto and incorporated herein by reference (the “Property”). The adjacent second parcel is referred to herein as the “Apartment Parcel.” Owner intends to upgrade the Property and continue its use as an affordable mobilehome park consisting of forty-four (44) Mobilehome Spaces and related improvements (the “Redeveloped Park”). Owner intends to cause an affordable apartment development to be constructed on the Apartment Parcel (the “Apartment Project”).
B. The City, the County, and Santa Clara County Housing Authority, a public body corporate and politic (“Authority”) each contributed certain funds to finance the acquisition and improvement of the Property and the adjacent property (the “Financing”). In consideration for the Financing, the Parties have agreed that the Property will be owned, operated and maintained subject to a recorded restriction that requires Owner and its successors in interest to use the Property as an affordable housing resource, to enhance the habitability of the Property, and to avoid displacement of the persons who currently reside in the Park.
C. The purpose of this Agreement is to satisfy the foregoing requirements, the requirements of Notice PIH-2011-45 (HA) published by the U.S. Department of Housing and Urban Development (“HUD”) that apply to housing authorities participating in the Moving to Work demonstration program, and those additional conditions required by the City and County in connection with the Financing.
D. This Agreement replaces and supersedes in its entirety that certain Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants dated as of September 29, 2017, executed by and among the City, the County, and the Authority, and recorded in the Official Records of Santa Clara County on September 29, 2017 (the “Original Acquisition Date”) as Instrument No, 23766007.
E. The Parties intend the covenants set forth in this Agreement to run with the land and to be binding upon Owner and Owner’s successors and assigns for the full term of this Agreement.
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3 NOW THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties incorporate the above Recitals into the Agreement and hereby agree as follows.
1. Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement.
“Actual Household Size" means the actual number of persons in the applicable household.
“Adjusted for Family Size Appropriate for the Unit” shall be determined consistent with the Santa Clara County Housing Authority’s Housing Quality Standards (HQS) and 24 CFR 982.401 (i.e., assumed household size of two (2) persons per bedroom).
"Affordable Rent" means the following amounts, less the following (i) a utility allowance, (ii) Mortgage Payments and property taxes, assessments, and insurance premiums payable by the Resident Household for the Mobilehome, and (iii) other fees and charges required to be paid by Resident Households on a non-optional basis in connection with the rental or lease of a Mobilehome or Mobilehome Space:
(i) for Mobilehomes/Mobilehome Spaces occupied or reserved for occupancy by households with incomes of not more than thirty (30%) of AMI (“30% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of thirty percent (30%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit,
(ii) for Mobilehomes/Mobilehome Spaces occupied or reserved for occupancy by households with incomes of greater than 30% AMI, but not more than fifty percent (50%) of AMI (“50% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of fifty percent (50%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit,
(iii) for Mobilehomes/Mobilehome Spaces occupied or reserved for occupancy by households with incomes of greater than 50% AMI, but not more than eighty percent (80%) of AMI (“80% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of eighty percent (80%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit; and (iv) for Mobilehomes/Mobilehome Spaces occupied or reserved for occupancy by households with incomes of greater than 80% AMI, but not more than one hundred twenty percent (120%) of AMI (“120% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of one hundred twenty percent (120%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit.
“Applicable Law” means all local, State, and federal laws, rules and regulations that apply to the Property or the Redeveloped Park, including without limitation all laws, Item 10
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4 rules and regulations that apply pursuant to financing provided for development or operation of the Property or the Redeveloped Park.
"Area Median Income" or "AMI" means the median income for Santa Clara County, California, adjusted for Actual Household Size, as determined by the U.S.
Department of Housing and Urban Development (“HUD”) pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development (“HCD”) in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). “Authority” means the Santa Clara County Housing Authority, a public body corporate and politic.
“Eligible Household” means a household whose Gross Household Income at initial occupancy does not exceed eighty percent (80%) of Area Median Income. “Existing Residents” means households that were lawfully residing in the Park as of the Effective Date.
“Fiscal Year” means the reporting period commending on January 1 and ending on December 31 of any year.
“Government Code” means the Government Code of the State of California. “Gross Household Income” means the total anticipated annual income of all persons in a household, as calculated in accordance with Section 6914 of Title 25 of the California Code of Regulations as such Section may be revised from time to time, or pursuant to a successor State or federal housing regulation that utilizes a reasonably similar method of calculation of household income.
“Income Certification” is defined in Section 2.
“Mobilehome” means a mobilehome, manufactured home, park model RV, or other dwelling unit located on the Property.
“Mobilehome Space” means a space located on the Property up on which a Mobilehome is placed.
“Mortgage Payment” means the monthly principal, interest, and mortgage insurance premiums (if any) payable by a Resident Household for a mortgage on a Mobilehome occupied by the Resident Household. To qualify as a Mortgage Payment for the purpose of establishing Affordable Rent, any new or additional mortgage, including any refinancing of an existing mortgage must be approved by Owner or Owner’s agent.
“MPA” means the Mobilehome Park Act, California Health and Safety Code sections 18200 et seq. and related regulations, as amended or its successor.
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5 “MRL” means the Mobilehome Residency Law, California Civil Code sections 798 et seq, and related regulations, as amended or its successor. “Rent” means the total of monthly payments payable by a Resident Household for the use and occupancy of a Mobilehome and/or a Mobilehome Space. “Resident Household” means a household that resides in a Restricted Unit. “Restricted Units” means the forty-four (44) Mobilehomes and Mobilehome Spaces in the Redeveloped Park that are subject to rent and income eligibility restrictions pursuant to this Agreement.
“Term” is defined in Section 2.1.
2. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that throughout the Term, the Property shall be used solely for the operation of affordable housing in compliance with the requirements set forth in this Agreement.
2.1 Affordability Requirements. Subject to Section 2.11, for a term of seventy- five (75) years commencing upon the Effective Date (the “Term”), subject to Sections
2.4 and 2.8, all Restricted Units shall be restricted for occupancy at Affordable Rents by Eligible Households. When Mobilehomes/Mobilehome Spaces become vacant, they shall be rented to Eligible Households to satisfy the following distribution among affordability levels: (a) no less than eighteen (18) Mobilehomes/Mobilehome Spaces (i.e., 40% of the Restricted Units) shall be occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than thirty percent (30%) of AMI adjusted for Actual Household Size, (b) no less than eighteen (18) additional Mobilehomes/Mobilehome Spaces (i.e., 40% of the Restricted Units) shall occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than fifty percent (50%) of AMI adjusted for Actual Household Size, and (c) the remainder of the Restricted Units shall be occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than eighty percent (80%) of AMI adjusted for Actual Household Size. The Parties agree to meet and confer regarding potential modifications to the requirements set forth in this Section 2.1 if Owner demonstrates that such modification is necessary to maintain the financial feasibility of the Redeveloped Park. City and County agree to consider such requests in good faith, and will not unreasonably deny consent if Owner demonstrates that the modification is necessary for financial feasibility.
2.2 Increases in Household Incomes; Filling of Vacancies. If, upon annual recertification of Gross Household Incomes, Owner determines that the requirements in Section 2.1 are not satisfied, Owner shall offer the next available vacant Mobilehome/Mobilehome Space(s) to households of the appropriate income categories until the requirements of Section 2.1 are satisfied.
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6 2.3 Other Restrictions. Notwithstanding anything to the contrary contained in this Agreement, if lenders, investors, or regulatory agencies require stricter household income eligibility or affordability requirements than those imposed by this Agreement, the requirements of such other lenders, investors or regulatory agencies, including without limitation, the requirements associated with tax-exempt financing, if applicable, shall prevail.
2.4 Existing Residents. Notwithstanding anything to the contrary contained in this Agreement, Existing Residents who do not qualify as an Eligible Household because their Gross Household Income is more than eighty percent (80%) but less than or equal to one hundred twenty percent (120%) of Area Median Income shall be permitted to rent or lease a Mobilehome or Mobilehome Space at an Affordable Rent until: (a) the household voluntarily vacates the Mobilehome/Mobilehome Space, or (b) the tenancy is terminated consistent with the requirements of the MRL, the lease agreement and Applicable Law. Furthermore, Existing Residents who do not qualify as an Eligible Household because their Gross Household Income is more than one hundred twenty percent (120%) of Area Median Income shall be permitted to continue to rent or lease a Mobilehome or Mobilehome Space or until: (a) the household voluntarily vacates the Mobilehome/Mobilehome Space, or (b) the tenancy is terminated consistent with the requirements of the MRL, the lease agreement and Applicable Law; provided however, upon written notice in accordance with Section 2.9 of this Agreement, Owner may adjust the rent charged to such household to up to fair market rent; provided however, in no event shall any annual rent increase exceed ten percent (10%) over the rent charged to such household in the immediately preceding twelve (12) month period.
2.5 Income and Occupancy Certification. Owner or Owner’s authorized agent shall obtain from each Resident Household prior to initial occupancy of a Restricted Unit, and annually thereafter, a completed income and occupancy certification (“Income Certification”) setting forth the identity of each household member and the total Household Gross Income.
2.6 Annual Income and Occupancy Certification Requirement. Owner shall include in lease and rental agreements pertaining to the Restricted Units a requirement that each Resident Household shall be required to annually provide an Income Certification to Owner, and that failure and/or refusal to provide such Income Certification will be considered a breach of the lease or rental agreement, and may result in the loss of the right to occupy a Mobilehome/Mobilehome Space in the Redeveloped Park.
2.7 Verification of Income and Occupancy Certification. For the initial and the annual Income Certifications, Owner shall verify each Resident Household’s income by requesting and reviewing such verification and documentation as Owner may reasonably require, which may include: (i) pay stubs for the most recent four (4) consecutive pay periods; (ii) if self-employed, Tax Form 1040, including Schedule C and other attachments from the prior year, (iii) an income verification form from the Social Security Administration and/or the California Department of Social Services if Resident Item 10
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7 Household members receives assistance from either of such agencies; (iv) history of the last 12 months of child support payments, if any, (v) if anyone in the Resident Household is unemployed, a form of independent verification; and (vi) the most recent of any and all bank account statements and/or any other financial account statements.
2.8 Increased Income of Household After Recertification. (a) If the Gross Household Income of a Resident Household is determined to have increased to be more than eighty percent (80%) but less than or equal to one hundred twenty percent (120%) of Area Median Income adjusted for Actual Household Size, such household shall be permitted to continue to rent or lease a Mobilehome or Mobilehome Space on the Property at Affordable Rent until: (a) the household voluntarily vacates the Mobilehome or Mobilehome Space, or (b) the tenancy is terminated consistent with the requirements of the MRL, the lease agreement and Applicable Law.
(b) If the Gross Household Income of a Resident Household is determined to have increased to be more than one hundred and twenty percent (120%) of Area Median Income adjusted for Actual Household Size, such household shall be permitted to continue to rent or lease a Mobilehome or Mobilehome Space on the Property until: (a) the household voluntarily vacates the Mobilehome or Mobilehome Space, or (b) the tenancy is terminated consistent with the requirements of the lease agreement, the MRL, and Applicable Law; provided however, upon written notice in accordance with Section 2.9 of this Agreement, Owner may adjust the rent charged to such household to up to fair market rent.
2.9 Notice of Rent Increase or Decrease. Each Resident Household shall be provided with notice of Rent increases or decreases consistent with the requirements set forth in the lease agreement and Applicable Law.
2.10 Intentionally omitted.
2.11 Vacancies. The Parties acknowledge and agree that notwithstanding any contrary provision of this Agreement, when a Mobilehome/Mobilehome Space is vacated, Owner shall have discretion to rent or sell the vacated Mobilehome to an Eligible Household.
3. Occupancy Requirements. Owner shall include in lease and rental agreements pertaining to the Restricted Units a requirement that each Resident Household shall be required to occupy their Mobilehome as their principal place of residence, and shall not be permitted to rent out their Mobilehome or sublease their Mobilehome or Mobilehome Space except as permitted under the MRL, the lease agreement and Applicable Law.
4. Construction of Improvements. Owner shall obtain all necessary permits and approvals for development of the Property and the Redeveloped Park, as required by Applicable Law, local zoning, and other applicable regulations.
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8 5. Relocation.
Persons residing on the Property as of the Effective Date shall not be displaced before suitable replacement housing is available. Owner or Owner’s agent shall be solely responsible for ensuring that all such persons receive all notices, benefits and assistance to which they are entitled in accordance with California Relocation Assistance Law (Government Code Section 7260 et seq.); Government Code sections 65863.7 and 65863.8; MPA section 798.56, the State and local regulations implementing such laws, and all other applicable local, State and federal laws, regulations and policies, including but not limited to the Uniform Relocation Act (42 U.S.C. §4601 et seq.) and implementing regulations (collectively “Relocation Laws”) relating to the displacement and relocation of eligible persons as defined in such Relocation Laws. All costs incurred in connection with the temporary and/or permanent displacement and/or relocation of occupants of the Property, including without limitation payments to a relocation consultant, moving expenses, and payments for temporary and permanent relocation benefits pursuant to Relocation Laws shall be paid by Owner.
County and City shall have no responsibility for payment therefor.
6. Owner’s Reporting Obligations to the City and County.
6.1 Annual Report. Within sixty (60) days following the close of each Fiscal Year, Owner shall submit to the City and the County a report (“Annual Report”) that includes the following information for each Restricted Unit: (a) the unit number, (b) the number of bedrooms in the Mobilehome Home, (c) the affordability category for the Mobilehome/Mobilehome Space, (d) the number of persons occupying the Mobilehome, (e) the Gross Household Income of the Resident Household, (f) the lease commencement date, (g) the current rent, utility, and other charges payable for the Mobilehome/Mobilehome Space, and (h) the projected rent increase (if any) for the Mobilehome/Mobilehome Space. To satisfy the requirement to provide an Annual Report, Owner may provide copies of forms submitted to the California Debt Limit Allocation Committee, the State Department of Housing and Community Development, or other California governmental agencies. In addition to the above, the Annual Report shall state the date the occupancy commenced, the initial rental rate, if a Mobilehome was purchased, then the purchase price paid by the resident (if such information is available) and such other information as the City or the County may be required by law to obtain.
6.2 Financial Audit. The Owner is responsible for obtaining a financial audit annually and shall provide the same to the City and County within one-hundred twenty (120) after the end of the Fiscal Year.
6.3 Additional Information. The Owner shall provide any additional information reasonably requested by the City or County. The City or County shall have right to examine and make copies of all books, records or other documents of the Owner pertaining to the Property.
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9 6.4 Retention and Inspection of Documents.
(a) Owner shall maintain complete, accurate and current records pertaining to the Restricted Units, the Redeveloped Park, and the Property, including copies of Income Certifications and Rent calculations for all Resident Households, and financial, management and maintenance records for the Redeveloped Park and the Property. Records shall be maintained for at least five (5) years from the date of their creation.
(b) Owner shall permit duly authorized representatives of the City and County to inspect Property records, including, without limitation, records pertaining to household income and household size of Resident Households; provided however, confidential and sensitive information relating to any Resident Household (such as account numbers, social security numbers, driver’s license numbers) may be redacted or marked out to protect the confidentiality of such information.
(c) The City or County or any duly authorized representative thereof shall have the right to revie w and request copies of documents. In either the City or County’s discretion, it shall have the right to audit such records, to determine the Owner’s compliance with the requirements of this Agreement.
7. Operation of the Property.
7.1 Residential Use. The Property shall be operated only for residential use; however, this restriction shall not prohibit the operation of community, recreational, educational, or similar facilities that are open to the public, provided that these uses are consistent with applicable zoning.
7.2 Non-Discrimination; Compliance with Fair Housing Laws.
7.2.1 Fair Housing. Owner and Owner’s agent shall comply with state and federal fair housing laws in the marketing and rental of the Mobilehomes and Mobilehome Spaces located on the Property. Owner shall accept as tenants, on the same basis as all other prospective tenants, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing Section 8 program or any successor thereto.
7.2.2 Non-Discrimination. Neither Owner nor Owner’s agent shall restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual orientation, disability, marital status, ancestry, or national origin of any person. Owner covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) Item 10
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10 of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith.
8. Property Management and Maintenance
8.1 Management Responsibilities. The Owner and Owner’s agent shall be responsible for all management functions with respect to the Property including, but not limited to, the selection of Resident Households, certification of household income and size, certification of the ages of all household members, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, security and management of household relocation, if required. The Owner shall retain a professional property management company to perform its management duties hereunder. City and County hereby approve John Stewart Company as the property manager, and subject to the rights of senior lenders and investors, City and County shall have the right to review and approve any subsequent property manager, which approval shall not be unreasonably withheld or delayed. A resident manager shall also be retained, if required by law or by Owner.
8.2 Performance Review. The City and County reserve the right to conduct jointly or separately an annual (or more frequently, if deemed reasonably necessary by the City or County) review of the management practices and financial status of the Property. The purpose of the performance review will be to enable the City and County to determine if the Property is being operated and managed in accordance with the requirements and standards of this Agreement. The Owner shall cooperate with the City and County in such reviews.
9. Indemnification
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Owner, County and City agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, its officers, employees or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such party under this Agreement. No Party, nor any officer, board member or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other Parties thereto, their officers, board Item 10
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11 members, employees, or agents, under or in connection with or arising out of any work authorized or delegated to such other Parties under this Agreement.
Notwithstanding the foregoing, the Owner, and its assigns, shall indemnify, defend, and hold harmless the County and City, its officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, the relocation of residents of the Property, the construction of improvements on the Property, and the operation or maintenance of the Redeveloped Park the Property, excepting only loss, injury or damage caused by the negligence or willful misconduct of the County or the City. The Owner, and its assigns, shall reimburse the County and City for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the Owner is obligated to indemnify, defend and hold harmless the County and City under this Agreement.
Each Party agrees that all obligations under this Section 9 shall survive the termination or assignment of this Agreement and shall remain binding on all Parties notwithstanding the Agreement’s termination or assignment.
10. Binding on Successors.
10.1 Effectiveness Succeeds Conveyance of Property. This Agreement shall remain effective and fully binding for the full Term regardless of any sale, assignment, transfer, or conveyance of the Property or any part thereof or interest therein. The Parties acknowledge that Owner may transfer the Property to (a) the Authority or to an entity affiliated with the Authority, (b) a limited partnership or limited liability company whose general partner or managing member is Owner or another nonprofit public benefit corporation or limited liability company that is controlled by or affiliated with Owner or the Authority, or (c) a nonprofit public benefit corporation controlled by or affiliated with Owner or the Authority.
10.2 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge this Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement upon the expiration of the term.
11. Binding Upon Successors; Covenants to Run with the Land . Owner hereby subjects its interest in the Property to the covenants and restrictions set forth in this Agreement. The Parties hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, transferees, and assigns of the Parties, regardless of any sale, assignment, conveyance or transfer of the Property or any part thereof or interest therein.
Any successor-in-interest to Owner, including without limitation any purchaser, transferee or lessee of the Property shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or any part thereof, shall Item 10
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12 conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument.
12. Recordation. This Agreement shall be recorded against the Property in the Official Records of Santa Clara County.
13. Mortgagee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Property, and the purchaser at any trustee’s sale or foreclosure sale shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser.
14. Default and Remedies. Owner’s default in the performance of any term, provision or covenant under this Agreement and failure to cure such default within ninety (90) days following receipt of notice of default to Owner, or if the nature of any such non-monetary default is such that it cannot be cured within ninety (90) days, Owner’s failure to commence to cure the default within ninety (90) days and thereafter prosecute the curing of such default with due diligence and in good faith shall constitute an Event of Default hereunder. Upon the occurrence of an Event of Default and its continuation beyond any applicable cure period, City or County may bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief, or pursue any other remedy allowed under law or in equity.
15. Reinvestment of Proceeds from Sale of Property. The Parties acknowledge and agree that a material consideration for the City and County to approve the financing described herein is for the proceeds of any subsequent sale of the Fee Property to be reinvested in the City to create affordable housing. In the event that the Fee Property is sold to a third party that is not an affiliate of the Authority and in connection with such sale the Fee Property will not be required to be used for affordable housing, the Parties shall cause an amount equal to: a) the amount not repaid to the City and County for any loans made by the City and County that are secured by the Fee Property, and b) at least fifty-two percent (52%) of the total appreciation of the value of the Fee Property since the Effective Date, to be reinvested in the City to create additional affordable housing. In the event that the Fee Property is sold to a third party that is not an affiliate of the Authority and in connection with such sale the Fee Property will continue to be used for affordable housing, the Parties agree that a) fifty-two percent (52%) of the total appreciation of the value of the Fee Property since the Effective Date shall be applied as a reduction to the purchase price of the Fee Property and b) the Owner shall cause to repay to the City and County any loan amount outstanding or the loan shall be assigned to the next Owner of the Fee Property. For the purposes of this paragraph, an "affiliate of the Authority" shall mean any entity that, directly or indirectly, controls, is controlled by, or is under common control with Authority. For the purposes of this paragraph, Item 10
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13 "affordable housing" shall mean the Fee Property is subject to occupancy and affordability restrictions which are substantially similar, including in length and levels of affordability, to the restrictions imposed under this Agreement and to which the City and County are parties.
Each Party agrees that all obligations under this Section 15 shall survive the termination or assignment of this Agreement and shall remain binding on all Parties notwithstanding the Agreement's termination or assignment.
16. Miscellaneous.
16.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by all of the Parties.
16.2 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.
City: City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Attention: _________
With a copy to:
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Attention: City Attorney
County: County of Santa Clara
70 W. Hedding Street, East Wing, 10th floor
San Jose, CA 95110
Attention: _____________
With a copy to:
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14 County of Santa Clara
Office of Supportive Housing
3180 Newberry Drive, Suite 150
San Jose, CA 95118
Attention: ____________
Owner: Poco Way HDC, Inc.
c/o Santa Clara County Housing Authority
505 W. Julian Street
San Jose, CA 95110
Attention: Preston Prince, Executive Director
16.3 Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement.
16.4 Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another. The relationship of the Parties shall not be construed as a joint venture, equity venture, partnership or any other relationship.
16.5 Headings; Construction. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party.
16.6 Governing Law; Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law.
Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Santa Clara County, California or in the Federal District Court for the Northern District of California.
16.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements, understandings, representations or statements of the Parties with respect thereto.
16.8 Severability. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.
16.9 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
SIGNATURES ON FOLLOWING PAGES.
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15 IN WITNESS WHEREOF, the Parties have executed this Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants as of the date first written above.
CITY:
CITY OF PALO ALTO, a municipal corporation
By: _______________________________
Print Name:___________________________
Title:_________________________________
Attest:________________________________
City Clerk
Approved as to form:
_____________________________
City Attorney
COUNTY:
COUNTY OF SANTA CLARA, a political subdivision of the State of California By: _______________________________
Print Name:________________________
Title:______________________________
Approved as to form and legality:
_____________________________
County Counsel
OWNER:
POCO WAY HDC INC., a California nonprofit public benefit corporation By:______________________
Preston Prince, President
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16 ACKNOWLEDGMENT
State of California )
) ss
County of Santa Clara )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
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17 ACKNOWLEDGMENT
State of California )
) ss
County of Santa Clara )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
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18 ACKNOWLEDGMENT
State of California )
) ss
County of Santa Clara )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
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19 Exhibit A
PROPERTY
The land is situated in the County of Santa Clara, City of Palo Alto, State of California, and is described as follows:
[insert legal description of Redeveloped Park parcel.]
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Proposed 2024 Regulatory
Agreement for
Buena Vista Apartments
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4879-7733-6990 v9
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
County of Santa Clara
San Jose, CA 95110
Attention: _____________
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Space above this line for Recorder’s use.
APN: ___________
AFFORDABLE HOUSING REGULATORY AGREEMENT
AND
DECLARATION OF RESTRICTIVE COVENANTS
(Apartments)
by and among
POCO WAY HDC, INC.,
THE CITY OF PALO ALTO,
and
THE COUNTY OF SANTA CLARA
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2 This Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (Apartments) (this “Agreement”) is entered into effective as of ______________, 2024 (“Effective Date”) by and among Poco Way HDC, Inc., a California nonprofit public benefit corporation (“Owner”), the City of Palo Alto, a chartered city and municipal corporation (“City”), and the County of Santa Clara, a political subdivision of the State of California (“County”). The City, the County, and the Owner are collectively referred to herein as the “Parties.”
RECITALS
A. Owner is the owner of the real property located at El Camino Real and Los Robles Road in the City of Palo Alto, Santa Clara County, California, commonly known as the Buena Vista Mobile Home Park, known as Assessor’s Parcel Nos. 137-12-001, 137-11-102 (ptn), 137-11-071 (ptn) (the “Park”). The property comprising the Park has been subdivided to create two parcels. The subject of this Agreement is the parcel described in Exhibit A attached hereto and incorporated herein by reference (the “Property”). The adjacent second parcel is referred to herein as the “Park Parcel”.
Owner intends to redevelop the Property and construct thereon a sixty-one (61) unit multifamily residential rental project consisting of sixty (60) affordable apartments and one unrestricted manager’s unit, with related improvements (the “Apartment Project”).
Owner intends to upgrade the Park Parcel and continue its use as an affordable mobilehome park.
B. The City, the County, and Santa Clara County Housing Authority, a public body corporate and politic (“Authority”) each contributed certain funds to finance the acquisition and improvement of the Property and the adjacent property (the “Financing”). In consideration for the Financing, the Parties have agreed that Property will be owned, operated and maintained subject to a recorded restriction that requires Owner and its successors in interest to use the Property as an affordable housing resource, to enhance the habitability of the Property, and to avoid displacement of the persons who currently reside at the Property.
C. The purpose of this Agreement is to satisfy the foregoing requirements, the requirements of Notice PIH-2011-45 (HA) published by the U.S. Department of Housing and Urban Development (“HUD”) that apply to housing authorities participating in the Moving to Work demonstration program, and those additional conditions required by the City and County in connection with the Financing.
D. This Agreement replaces and supersedes in its entirety that certain Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants dated as of September 29, 2017, executed by and among the City, the County, and the Authority, and recorded in the Official Records of Santa Clara County on September 29, 2017 (the “Original Acquisition Date”) as Instrument No, 23766007.
E. The Parties intend the covenants set forth in this Agreement to run with the land and to be binding upon Owner and Owner’s successors and assigns for the full term of this Agreement.
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3 NOW THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties incorporate the above Recitals into the Agreement and hereby agree as follows.
1. Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement.
“Actual Household Size" means the actual number of persons in the applicable household.
“Adjusted for Family Size Appropriate for the Unit” shall be determined consistent with the Santa Clara County Housing Authority’s Housing Quality Standards (HQS) and 24 CFR 982.401 (i.e., assumed household size of two (2) persons per bedroom).
"Affordable Rent" means the following amounts, less a utility allowance and other fees and charges required to be paid by tenants on a non-optional basis:
(i) for Dwelling Units occupied or reserved for occupancy by households with incomes of not more than thirty (30%) of AMI (“30% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of thirty percent (30%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, (ii) for Dwelling Units occupied or reserved for occupancy by households with incomes of greater than 30% AMI, but not more than fifty percent (50%) of AMI (“50% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of fifty percent (50%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit,
(iii) for Dwelling Units occupied or reserved for occupancy by households with incomes of greater than 50% AMI, but not more than eighty percent (80%) of AMI (“80% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of eighty percent (80%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit; and
(iv) for Dwelling Units occupied or reserved for occupancy by households with incomes of greater than 80% AMI, but not more than one hundred twenty percent (120%) of AMI (“120% Units”), a monthly rent that does not exceed one- twelfth of thirty percent (30%) of one hundred twenty percent (120%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit. “Applicable Law” means all local, State, and federal laws, rules and regulations that apply to the Property or the Apartment Project, including without limitation all laws, rules and regulations that apply pursuant to financing provided for development or operation of the Property or the Apartment Project.
"Area Median Income" or "AMI" means the median income for Santa Clara County, California, adjusted for Actual Household Size, as determined by the U.S.
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4 Department of Housing and Urban Development (“HUD”) pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development (“HCD”) in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). “Authority” means the Santa Clara County Housing Authority, a public body corporate and politic.
“Dwelling Unit” means each of the residential apartments developed on the Property.
“Eligible Household” means a household whose Gross Household Income at initial occupancy does not exceed eighty percent (80%) of Area Median Income. “Existing Residents” means households that were lawfully residing in the Park as of the Effective Date.
“Fiscal Year” means the reporting period commending on January 1 and ending on December 31 of any year.
“Government Code” means the Government Code of the State of California. “Gross Household Income” means the total anticipated annual income of all persons in a household, as calculated in accordance with Section 6914 of Title 25 of the California Code of Regulations as such Section may be revised from time to time, or pursuant to a successor State or federal housing regulation that utilizes a reasonably similar method of calculation of household income.
“Income Certification” is defined in Section 2.
“Rent” means the total of monthly payments payable by a Resident Household for the use and occupancy of a Dwelling Unit.
“Resident Household” means a household that resides in a Restricted Unit. “Restricted Units” means the sixty (60) Dwelling Units in the Apartment Project that are subject to rent and income eligibility restrictions pursuant to this Agreement. “Term” is defined in Section 2.1.
2. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that throughout the Term, the Property shall be used solely for the operation of affordable housing in compliance with the requirements set forth in this Agreement.
2.1 Affordability Requirements. For a term of seventy-five (75) years commencing upon the Effective Date (the “Term”), subject to Sections 2.4 and 2.8, all Item 10
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5 Restricted Units shall be restricted for occupancy at Affordable Rents by Eligible Households. When Dwelling Units becomes vacant, they shall be rented to Eligible Households to satisfy the following distribution among affordability levels: (a) no less than 24 Dwelling Units (40% of the Restricted Units) shall be occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than thirty (30%) of AMI adjusted for Actual Household Size, (b) no less than 24 additional Dwelling Units (40% of the Restricted Units) shall occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than fifty (50%) of AMI adjusted for Actual Household Size, and (c) the remainder of the Restricted Units shall be occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than eighty percent (80%) of AMI adjusted for Actual Household Size. The Parties agree to meet and confer regarding potential modifications to the requirements set forth in this Section 2.1 if Owner demonstrates that such modification is necessary to maintain the financial feasibility of the Apartment Project.
City and County agree to consider such requests in good faith, and will not unreasonably deny consent if Owner demonstrates that the modification is necessary for financial feasibility.
2.2 Increases in Household Incomes; Filling of Vacancies. If, upon annual recertification of Gross Household Incomes, Owner determines that the requirements in Section 2.1 are not satisfied, Owner shall offer the next available vacant Dwelling Unit(s) to a households of the appropriate income categories until the requirements of Section
2.1 are satisfied.
2.3 Other Restrictions. Notwithstanding anything to the contrary contained in this Agreement, if lenders, investors, or regulatory agencies require stricter household income eligibility or affordability requirements than those imposed by this Agreement, the requirements of such other lenders, investors or regulatory agencies, including without limitation, the requirements associated with tax-exempt financing, if applicable, shall prevail. In addition, notwithstanding any contrary provision of this Agreement, the rent and household income limitations applicable to the use of federal low-income housing tax credits shall prevail over any inconsistent provision of this Agreement if federal low-income housing tax credits are used to finance the Apartment Project.
2.4 Existing Residents. Notwithstanding anything to the contrary contained in this Agreement, Existing Residents who do not qualify as an Eligible Household because their Gross Household Income is more than eighty percent (80%) but less than or equal to one hundred twenty percent (120%) of Area Median Income shall be permitted to rent or lease a Dwelling Unit at an Affordable Rent until: (a) the household voluntarily vacates the Dwelling Unit, or (b) the tenancy is terminated consistent with the requirements of the lease agreement and Applicable Law. Furthermore, Existing Residents who do not qualify as an Eligible Household because their Gross Household Income is more than one hundred twenty percent (120%) of Area Median Income shall be permitted to continue to rent or lease a Dwelling Unit until: (a) the household voluntarily vacates the Dwelling Unit, or (b) the tenancy is terminated consistent with the requirements of the lease agreement and Applicable Law; provided however, upon Item 10
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6 written notice in accordance with Section 2.9 of this Agreement, Owner may adjust the rent charged to such household to up to fair market rent; provided however, in no event shall any annual rent increase exceed ten percent (10%) over the rent charged to such household in the immediately preceding twelve (12) month period.
2.5 Income and Occupancy Certification. Owner or Owner’s authorized agent shall obtain from each Resident Household prior to initial occupancy of a Restricted Unit, and annually thereafter, a completed Income and Occupancy Certification (“Income Certification”) setting forth the identity of each household member and the total Household Gross Income.
2.6 Annual Income and Occupancy Certification Requirement. Owner shall include in lease and rental agreements pertaining to the Restricted Units a requirement that each Resident Household shall be required to annually provide an Income Certification to Owner, and that failure and/or refusal to provide such Income Certification will be considered a breach of the lease or rental agreement, and may result in the loss of the right to occupy a Dwelling Unit.
2.7 Verification of Income and Occupancy Certification. For the initial and the annual Income Certification, Owner shall verify each Resident Household’s income by requesting and reviewing such verification and documentation as Owner may reasonably require, which may include: (i) pay stubs for the most recent four (4) consecutive pay periods; (ii) if self-employed, Tax Form 1040, including Schedule C and other attachments from the prior year, (iii) an income verification form from the Social Security Administration and/or the California Department of Social Services if Resident Household members receives assistance from either of such agencies; (iv) history of the last 12 months of child support payments, if any, (v) if anyone in the Resident Household is unemployed, a form of independent verification; and (vi) the most recent of any and all bank account statements and/or any other financial account statements.
2.8 Increased Income of Household After Recertification. (a) If the Gross Household Income of a Resident Household is determined to have increased to be more than eighty percent (80%) but less than or equal to one hundred twenty percent (120%) of Area Median Income adjusted for Actual Household Size, such household shall be permitted to continue to rent or lease a Dwelling Unit at Affordable Rent until: a) the household voluntarily vacates the Dwelling Unit, or b) the tenancy is terminated consistent with the requirements of the lease agreement and Applicable Law.
(b) If the Gross Household Income of a Resident Household is determined to have increased to be more than one hundred and twenty percent (120%) of Area Median Income adjusted for Actual Household Size, such household shall be permitted to continue to rent or lease a Dwelling Unit until: a) the household voluntarily vacates the Dwelling Unit, or b) the tenancy is terminated consistent with the requirements of the lease agreement and Applicable Law; provided however, upon written notice in Item 10
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7 accordance with Section 2.9 of this Agreement, Owner may adjust the rent charged to such household to up to fair market rent.
2.9 Notice of Rent Increase or Decrease. Each Resident Household shall be provided with notice of Rent increases or decreases consistent with the requirements set forth in the lease agreement and Applicable Law.
2.10 Managers’ Units. One (1) Dwelling Unit may be used as a resident manager’s unit, and shall be exempt from the occupancy and rent restrictions set forth in this Agreement.
3. Occupancy Requirements. Owner shall include in lease and rental agreements pertaining to the Restricted Units a requirement that each Resident Household shall be required to occupy their Dwelling Unit as their principal place of residence, and shall not be permitted to sublease their Dwelling Unit .
4. Construction of Improvements. Owner shall obtain all necessary permits and approvals for development of the Property and construction of the Apartment Project, as required by Applicable Law, local zoning, and other applicable regulations. City maintains and reserves full authority and discretion under State and local law in the processing of entitlements and permit applications.
5. Relocation.
Persons residing on the Property as of the Effective Date shall not be displaced before suitable replacement housing is available. Owner or Owner’s agent shall be solely responsible for ensuring that all such persons receive all notices, benefits and assistance to which they are entitled in accordance with California Relocation Assistance Law (Government Code Section 7260 et seq.); Government Code sections 65863.7 and 65863.8; the State and local regulations implementing such laws, and all other applicable local, State and federal laws, regulations and policies, including but not limited to the Uniform Relocation Act (42 U.S.C. §4601 et seq.) and implementing regulations (collectively “Relocation Laws”) relating to the displacement and relocation of eligible persons as defined in such Relocation Laws. All costs incurred in connection with the temporary and/or permanent displacement and/or relocation of occupants of the Property, including without limitation payments to a relocation consultant, moving expenses, and payments for temporary and permanent relocation benefits pursuant to Relocation Laws shall be paid by Owner. County and City shall have no responsibility for payment therefor.
6. Owner’s Reporting Obligations to the City and County.
6.1 Annual Report. Within sixty (60) days following the close of each Fiscal Year, Owner shall submit to the City and the County a report (“Annual Report”) that includes the following information for each Restricted Unit: (a) the unit number, (b) the number of bedrooms in the Dwelling Unit, (c) the affordability category for the Dwelling Unit, (d) the number of persons occupying the Dwelling Unit, (e) the Gross Household Item 10
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8 Income of the Resident Household, (f) the lease commencement date, (g) the current rent, utility, and other charges payable for the Dwelling Unit, and (h) the projected rent increase (if any) for the Dwelling Unit. To satisfy the requirement to provide an Annual Report, Owner may provide copies of forms submitted to the California Tax Credit Allocation Committee, the State Department of Housing and Community Development, or other California governmental agencies. In addition to the above, the Annual Report shall state the date the occupancy commenced, the initial rental rate, and such other information as the City or the County may be required by law to obtain.
6.2 Financial Audit. The Owner is responsible for obtaining a financial audit annually and shall provide the same to the City and County within one-hundred twenty (120) after the end of the Fiscal Year.
6.3 Additional Information. The Owner shall provide any additional information reasonably requested by the City or County. The City or County shall have right to examine and make copies of all books, records or other documents of the Owner pertaining to the Property.
6.4 Retention and Inspection of Documents.
(a) Owner shall maintain complete, accurate and current records pertaining to the Dwelling Units, the Apartment Project, and the Property, including copies of Income Certifications and Rent calculations for all Resident Households, and financial, management and maintenance records for the Apartment Project and the Property. Records shall be maintained for at least five (5) years from the date of their creation.
(b) Owner shall permit duly authorized representatives of the City and County to inspect Property records, including, without limitation, records pertaining to household income and household size of Resident Households; provided however, confidential and sensitive information relating to any Resident Household (such as account numbers, social security numbers, driver’s license numbers) may be redacted or marked out to protect the confidentiality of such information.
(c) The City or County or any duly authorized representative thereof shall have the right to review and request copies of documents. In either the City or County’s discretion, it shall have the right to audit such records , to determine the Owner’s compliance with the requirements of this Agreement.
7. Operation of the Property.
7.1 Residential Use. The Property shall be operated only for residential use; however, this restriction shall not prohibit the operation of community, recreational, educational, or similar facilities that are open to the public, provided that these uses are consistent with applicable zoning, subject to any use restrictions that may apply pursuant to Apartment Project financing.
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9 7.2 Non-Discrimination; Compliance with Fair Housing Laws.
7.2.1 Fair Housing. Owner and Owner’s agent shall comply with state and federal fair housing laws in the marketing and rental of the Dwelling Units. Owner shall accept as tenants, on the same basis as all other prospective tenants, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing Section 8 program or any successor thereto.
7.2.2 Non-Discrimination. Neither Owner nor Owner’s agent shall restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual orientation, disability, marital status, ancestry, or national origin of any person. Owner covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith.
8. Property Management and Maintenance
8.1 Management Responsibilities. The Owner and Owner’s agent shall be responsible for all management functions with respect to the Property including, but not limited to, the selection of Resident Households, certification of household income and size, certification of the ages of all household members, evictions, collection of rents and deposits, payment for operating and other expenses, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, security and management of household relocation, if required. The Owner shall retain a professional property management company to perform its management duties hereunder. City and County hereby approve John Stewart Company as the property manager, and subject to the rights of senior lenders and investors, City and County shall have the right to review and approve any subsequent property manager, which approval shall not be unreasonably withheld or delayed. A resident manager shall also be retained, if required by law or by Owner.
8.2 Performance Review. The City and County reserve the right to conduct jointly or separately an annual (or more frequently, if deemed reasonably necessary by the City or County) review of the management practices and financial status of the Property. The purpose of the performance review will be to enable the City and County to determine if the Property is being operated and managed in accordance with the Item 10
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10 requirements and standards of this Agreement. The Owner shall cooperate with the City and County in such reviews.
9. Indemnification
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Owner, County and City agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, its officers, employees or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such party under this Agreement. No Party, nor any officer, board member or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other Parties thereto, their officers, board members, employees, or agents, under or in connection with or arising out of any work authorized or delegated to such other Parties under this Agreement.
Notwithstanding the foregoing, the Owner, and its assigns, shall indemnify, defend, and hold harmless the County and City, its officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, the relocation of residents of the Property, the construction of improvements on the Property, and the operation or maintenance of the Apartment Project and the Property, excepting only loss, injury or damage caused by the negligence or willful misconduct of the County or the City. The Owner, and its assigns, shall reimburse the County and City for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the Owner is obligated to indemnify, defend and hold harmless the County and City under this Agreement.
Each Party agrees that all obligations under this Section 9 shall survive the termination or assignment of this Agreement and shall remain binding on all Parties notwithstanding the Agreement’s termination or assignment.
10. Binding on Successors.
10.1 Effectiveness Succeeds Conveyance of Property. This Agreement shall remain effective and fully binding for the full Term regardless of any sale, assignment, transfer, or conveyance of the Property or any part thereof or interest therein. The Parties acknowledge that Owner may transfer the Property to (a) the Authority or to an entity affiliated with the Authority, (b) a limited partnership whose general partner is Owner, or another nonprofit public benefit corporation or limited liability company that is controlled by or affiliated with Owner or the Authority, or (c) a nonprofit public benefit corporation controlled by or affiliated with Owner or the Authority.
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11 10.2 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge this Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement upon the expiration of the term.
11. Binding Upon Successors; Covenants to Run with the La nd. Owner hereby subjects its interest in the Property to the covenants and restrictions set forth in this Agreement. The Parties hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, transferees, and assigns of the Parties, regardless of any sale, assignment, conveyance or transfer of the Property or any part thereof or interest therein.
Any successor-in-interest to Owner, including without limitation any purchaser, transferee or lessee of the Property shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or any part thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument.
12. Recordation. This Agreement shall be recorded against the Property in the Official Records of Santa Clara County.
13. Mortgagee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Property, and the purchaser at any trustee’s sale or foreclosure sale shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser.
14. Default and Remedies. Owner’s default in the performance of any term, provision or covenant under this Agreement and failure to cure such default within ninety (90) days following receipt of notice of default to Owner, or if the nature of any such non-monetary default is such that it cannot be cured within ninety (90) days, Owner’s failure to commence to cure the default within ninety (90) days and thereafter prosecute the curing of such default with due diligence and in good faith shall constitute an Event of Default hereunder. Upon the occurrence of an Event of Default and its continuation beyond any applicable cure period, City or County may bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief, or pursue any other remedy allowed under law or in equity.
15. Reinvestment of Proceeds from Sale of Property. The Parties acknowledge and agree that a material consideration for the City and County to approve the financing described herein is for the proceeds of any subsequent sale of the Fee Item 10
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12 Property to be reinvested in the City to create affordable housing. In the event that the Fee Property is sold to a third party that is not an affiliate of the Authority and in connection with such sale the Fee Property will not be required to be used for affordable housing, the Parties shall cause an amount equal to: a) the amount not repaid to the City and County for any loans made by the City and County that are secured by the Fee Property, and b) at least fifty-two percent (52%) of the total appreciation of the value of the Fee Property since the Effective Date, to be reinvested in the City to create additional affordable housing. In the event that the Fee Property is sold to a third party that is not an affiliate of the Authority and in connection with such sale the Fee Property will continue to be used for affordable housing, the Parties agree that a) fifty-two percent (52%) of the total appreciation of the value of the Fee Property since the Effective Date shall be applied as a reduction to the purchase price of the Fee Property and b) the Owner shall cause to repay to the City and County any loan amount outstanding or the loan shall be assigned to the next Owner of the Fee Property. For the purposes of this paragraph, an "affiliate of the Authority" shall mean any entity that, directly or indirectly, controls, is controlled by, or is under common control with Authority. For the purposes of this paragraph, "affordable housing" shall mean the Fee Property is subject to occupancy and affordability restrictions which are substantially similar, including in length and levels of affordability, to the restrictions imposed under this Agreement and to which the City and County are parties.
Each Party agrees that all obligations under this Section 15 shall survive the termination or assignment of this Agreement and shall remain binding on all Parties notwithstanding the Agreement's termination or assignment.
16. Miscellaneous.
16.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by all of the Parties.
16.2 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.
City: City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
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13 Attention: _________
With a copy to:
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Attention: City Attorney
County: County of Santa Clara
70 W. Hedding Street, East Wing, 10th floor
San Jose, CA 95110
Attention: _____________
With a copy to:
County of Santa Clara
Office of Supportive Housing
3180 Newberry Drive, Suite 150
San Jose, CA 95118
Attention: ____________
Owner: Poco Way HDC, Inc.
c/o Santa Clara County Housing Authority
505 W. Julian Street
San Jose, CA 95110
Attention: Preston Prince, Executive Director
16.3 Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement.
16.4 Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another. The relationship of the Parties shall not be construed as a joint venture, equity venture, partnership or any other relationship.
16.5 Headings; Construction. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party.
16.6 Governing Law; Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law.
Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Santa Clara County, California or in the Federal District Court for the Northern District of California.
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14 16.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements, understandings, representations or statements of the Parties with respect thereto.
16.8 Severability. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.
16.9 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
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15 IN WITNESS WHEREOF, the Parties have executed this Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants as of the date first written above.
CITY:
CITY OF PALO ALTO, a municipal corporation
By: _______________________________
Print Name:___________________________
Title:_________________________________
Attest:________________________________
City Clerk
Approved as to form:
_____________________________
City Attorney
COUNTY:
COUNTY OF SANTA CLARA, a political subdivision of the State of California By: _______________________________
Print Name:________________________
Title:______________________________
Approved as to form and legality:
_____________________________
County Counsel
OWNER:
POCO WAY HDC INC., a California nonprofit public benefit corporation By:______________________
Preston Prince, President
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16 ACKNOWLEDGMENT
State of California )
) ss
County of Santa Clara )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
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17 ACKNOWLEDGMENT
State of California )
) ss
County of Santa Clara )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
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18 ACKNOWLEDGMENT
State of California )
) ss
County of Santa Clara )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
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19 Exhibit A
PROPERTY
The land is situated in the County of Santa Clara, City of Palo Alto, State of California, and is described as follows:
[insert legal description of Apartment Project parcel.]
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ATTACHMENT E
ZONING CONSISTENCY ANALYSIS
3980 El Camino Real, 24PLN-00041
Table 1: COMPARISON WITH CHAPTER 18.13 (RM-20 DISTRICT) Regulation
Required Proposed
Minimum/Maximum Site
Area, Width and Depth 8,500 sf area, 70-foot width, 100- foot depth
Irregular
~338.65 feet L X ~219.74 feet W
73,711 sf (1.69 acre)
Minimum Front Yard 20 feet 30 feet
Rear Yard 10 feet 70 feet, 8 inches
Street Side Yard 16 feet Not Applicable
Interior Side Yard (for
lots greater than 70 feet
in width)
10 feet 35 feet, 4 inches from east side
72 feet, 8 inches from west side
Max. Building Height 30 feet 37 feet, six inches
Waiver Requested
Side Yard Daylight Plane 10 feet at interior side lot line then 45 degree angle Complies
Rear Yard Daylight Plane 10 feet at rear setback line then 45-degree angle Complies
Max. Site Coverage 35% (plus an additional 5% for
covered patios or overhangs)
(8,294 sf)
28% (20,373 sf)
Max. Total Floor Area
Ratio 0.5:1 (36,855 sf) 1.0:1 (73,710 sf)
Waiver requested
Residential Density 11 to 20 units per acre
(19 to 34 units)
61 DU on 1.69 acre = 36 units per acre
Complies with State Density Bonus Law 80%
Bonus Allowance
Minimum landscape/ Site
Open Space 35% (5,847 sf) 24.5% (17677 sf)
Waiver Requested
Minimum Usable Open
Space 150 sf per unit 150.4 sf per unit
Minimum Common Open
Space 75 sf per unit 5,463 sf (89.5 sf per unit)
Minimum Private Open
Space 50 sf per unit None
Concession Requested
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Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking) for Multiple-Family Residential
Type Required Proposed
Vehicle Parking 1 per studio unit
1 per 1-bedroom unit
1.5 per 2-bedroom or larger unit(1)
=77 Spaces
Tandem parking is permitted for
multiple-family and two-family uses at a
maximum of 25% of the units(1)
79 – 3-bedroom units; 24 spaces
0% tandem
Loading Area Residential and mixed-use structures
with fifty (50) or more dwelling units
shall provide at least one (1) on-site,
short-term loading space for passenger
vehicles, to be used by taxicabs and
similar transportation and delivery
services
1 proposed
Bicycle Parking One (1) Long-term bicycle parking space per unit=61 spaces
One (1) short-term bicycle parking
space per 10% of units=6 spaces
72 LT spaces; six (6) ST spaces
(1) In accordance with state density bonus law, only 1.5 parking spaces is required, and all units may have tandem parking. Therefore, although this requirement does not meet the city’s local code requirements, this allowance is provided per state law without the need for an additional waiver/concession.
Regulation Required Proposed
5-foot planting strip Complies
Minimum required interior landscaping=7.5% 9.3%
Landscape islands minimum 5x5 Minimum 6x18
Landscape islands every 10 spaces in a row Complies
Minimum 1 tree per 6 parking stalls
Number of parking spaces: 79
Number of tree required: 13
Number of trees in landscape
islands: 8
Number of trees on perimeter:
13 Total number of trees counted:
21 Parking lot Design
Tree plantings should shade 50% of the parking lot
surface areas in 15 years
Tree Canopy area required: 11,829(50%)
Tree canopy area provided:
11,198 (47%)
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City of Palo Alto Objective Design Standards: Checklist