San Carlos City Council
June 13, 2022

1 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting

June 13, 2022 7:00 P.M.

Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both in -person at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

In-Person Participation:
 Location. City Hall – 600 Elm Street, Council Chambers.

Masks are no longer required, but are still highly recommended in accordance with California Dept of Health Guidelines. To maintain public health and safety, please do not attend in person if you are experiencing symptoms associated with COVID-19.

 Provide Public Comment. To address the City Council on any item on the posted agenda, fill out a Request to Speak Form located in the back of the Council Chambers and submit it to the City Clerk; or, you may raise your hand when the Mayor calls for public comments.

Remote Participation:
 Observe via:
- Zoom. https://us02web.zoom.us/j/88256140939; or call 1-669-900-9128 and enter the Meeting ID #: 882 5614 0939
- Meeting Webportal. www.cityofsancarlos.org/agenda
- Local TV. Comcast Channel 27 and AT&T Uverse Channel 99

 Provide Public Comment. If you plan to make a public comment on any item on the posted agenda, please ob serve the meeting via Zoom (see above access inf ormation), and during the public comment period for the agenda item you wish to address, use the “raise hand” feature. If joining Zoom by phone, press *9 to “raise hand”.

Councilmembers may participate in this meeting remotely as authorized by AB 361.

MAYOR: Sara McDowell
COUNCIL: Ronald Collins, John Dugan, Laura Parmer-Lohan, Adam Rak

1. CALL TO ORDER

2 2. PLEDGE OF ALLEGIANCE

3. CHANGES TO THE ORDER OF THE AGENDA

4. PRESENTATIONS
a. Present a Proclamation Recognizing June 2022 as Pride Month. b. Present a Proclamation Recognizing the 25t h Anniversary of Healthy Cities Tutoring.

5. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS
Council Communications and Announcements are brief items from members of the City Council regarding upcoming events in the community and correspondence that they have received. They are informational in nature and no action will be taken on these items at this meeting.

6. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

Each speaker is limited to two minutes. If there are more than five individuals wishing to speak during public comment, the Mayor may choose to allow the first five speakers to speak during this time, and the bal ance of the Public Comment speakers will be called upon at the end of the Council Meeting.

If the item you are speaking on is not listed on the agenda, please be advised that the City Council may briefly respond to statements made or questions posed as al lowed under the Brown Act (Government Code Section 54954.2). The City Council's general policy is to refer items to staff for attention, or have a matter placed on a future City Council agenda for a more comprehensive action or report and formal public dis cussion and input at that time.

7. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve Minutes of April 25, 2022 City Council Regular Meeting. c. Approve Minutes of May 25, 2022 City Council Special Meeting. d. Adopt a Resolution Aw arding the High Intensity Crosswalk (HAWK) Signal at Belmont Avenue-El Camino Real Project C1807; Authorize the City Manager to Execute a Public Projects Agreement with W. Bradley Electric, Inc. of Novato, CA in the Amount of $345,652; and Authorizing the Expenditure of Contingency in the Amount of $69,130.
e. Adopt a Resolution Ratifying the Proposed Budget for Fiscal Years 2022 -24 for the Belmont-San Carlos Fire Department.
f. Adopt a Resolution Approving Amendment 4 (Exhibit B -1) to the Law Enforcement Services Agreement with the San Mateo County Sheriff's Office, 3 Including the Fiscal Year 2022 -23 Payment of $11,086,640, and the Approval of the Use of Prior Year Savings in the Amount of $228,540 for Police Services. g. Adopt a Resolution Making Find ings and Authorizing Remote Teleconference Meetings of the City Council and Commissions Pursuant to Assembly Bill 361. h. Reappoint Cecile Lee to the Parks, Recreation and Culture Commission for a Three-Year Term Ending June 30, 2025.
i. Adopt a Resolu tion Authorizing the City Manager to Execute an Addendum to Agreement for Professional Services with Granicus LLC for Website and Intra net Subscription Services in an Amount Not to Exceed $37,981.71.

8. REPORTS TO COUNCIL
Reports to Council are updates o n key City projects by City staff and City Council Subcommittees. They are informational in nature, and no action will be taken on these items at this meeting.
a. Receive an Update on Trails in San Carlos.

9. PUBLIC HEARING
a. Consideration of Introducing an Ordinance Amending Municipal Code Chapter 18 to Adjust the City Density Bonus, Inclusionary Housing Requirements, Affordability Periods, Parking for Affordable Units, and Making Other Conforming Amendments.
b. Consideration of Introducing an Ordinance Amending San Carlos Municipal Code Title 18 - Zoning, Consisting of Modifications to Chapter 18.23.210 - Accessory Dwelling Units/Junior Accessory Dwelling Units.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

a. Consideration of a Agendizing an Item to Approve a Letter from the Council to PG&E Regarding Code Enforcement Issues and Requests in the Industrial Arts District.

11. ADJOURNMENT

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

In compliance with the Americans with Disabilities Act and Title VI, if you need special assistance or translation services to participate in this meeting, please contact the City Clerk’s Office at (650) 802 -4222 or via email at [email protected]. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

April 25, 2022 1

San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Regular Meeting
Conducted Remotely in Accordance with Assembly Bill 361 April 25, 2022, 7:00 PM

MINUTES

ROLL CALL
City Council Present: Sara McDowell, Mayor
Ronald Collins, Councilmember
John Dugan, Councilmember
Laura Parmer-Lohan, Councilmember
Adam Rak, Vice Mayor

Staff Present: Kristina Bell, Police Captain
Nil Blackburn, Assistant City Manager
Sara Cadona, Assistant Planner Consultant
Lisa Sanders, Principal Planner
Rucha Dande, Associate Planner
Julia Hoffman, Assistant Planner
Jeff Maltbie, City Manager
Steven Machida, Public Works Director
Andrea Mardesich, Principal Planner
Rebecca Mendenhall, Administrative Services Director
Tyler Muela, Recreation Supervisor
Crystal Mui, City Clerk
Lisa Porras, Planning Manager
Gregory Rubens, City Attorney
Al Savay, Community Development Director
Megan Wooley-Ousdahl, Senior Planner

1. CALL TO ORDER
The meeting was called to order at 7:00 PM by Mayor Sara McDowell.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led b y Kyle Tennison and Dylan Williams from Boy Scout Troop 321.

3. CHANGES TO THE ORDER OF THE AGENDA
None.

4. PRESENTATIONS
a. Presentation of Proclamations to Kyle Tennison and Dylan Williams with Bo y Scout Troop 321, Upon Receiving Their Eagle Scout Award.

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Minutes Acceptance: Minutes of Apr 25, 2022 7:00 PM (CONSENT CALENDAR)

April 25, 2022 2
Mayor McDowell presented proclamations to Kyle Tennison and Dylan Williams recognizing them for attaining the Eagle Scout rank. Mr. Tennison and Mr.

Williams each spoke on their Eagle Scout Project.

5. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS
a. Council Members Report on Subcommittees, Regional Boards, Commissions and Committees.

None.
b. Report on Commencement of City of San Carlos Code of Conduct and Ethics Policy Investigation (City Treasurer).

Mayor McDowell reported a potential Code of Conduct violation involving City Treasurer Inge Tiegel and directed the City Attorney to investigate the matter.

Public Comment
Mark Olbert, resident and former Councilmember and Mayor, reported an interaction he had with the City Treasurer that he believes m ay be an additional violation to the City’s Code of Conduct Policy.

6. PUBLIC COMMENT
Lauren McCombs, resident and volunteer with Fixing San Mateo County, requested Council to create a community based o vernight board to the Sheriff's Office and to endorse the work of Fixing San Mateo County.

Mark Olbert, resident and former Councilmember and Mayor , stated that Clock Tower sustained property damage from an intoxicated patron from the Orchid Room. He requested Council to implement measures to minimize these types of occurrences.

7. CONSENT CALENDAR
Councilmember Collins thanked Public Works Director Steven Machida for proceeding with the HAWK Signal Project (Item 7c).

RESULT: Adopted [Unanimous] Consent Calendar Items ‘a” through ‘e’.

MOVER: Ronald Collins
SECONDER: Adam Rak
AYES: Dugan, Collins, Parmer-Lohan, Rak, McDowell
a. Motion to Waive Reading of All Ordinances.
b. Approve Minutes of March 14, 2022 City Council Regular Meeting. c. Adopt a Resoluti on Approving the Plans and Specifications and Authorizing a Call for Bids for the HAWK Signal at Belmont Avenue and El Camino Real C1807. Resolution 2022-037
d. Authorizing the City Manager to Enter into a Historical Property Preservation Agreement (Mills Act Contract) for the Property Located at 300 Chestnut Street in the City of San Carlos. Resolution 2022-037-1

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Minutes Acceptance: Minutes of Apr 25, 2022 7:00 PM (CONSENT CALENDAR)

April 25, 2022 3
e. Adopt a Resolution Authorizing the City Manager to Execute a One -Year Extension to the Agreement with Granicus, Inc. for the IQM2 Agenda Management System in an Amount Not to Exceed $13,680. Resolution 2022- 038

8. REPORTS TO COUNCIL
a. Receive an Annual Update on Police Services.

Police Captain Kristina Bell provided an update on police services in 2021 and responded to Council questions.

Public Comment
Sonia Elkes, resident, expressed appreciation to the Sheriff's Office for their work.

Council commended the Sheriff's Office for their services and their work on the Psychiatric Emergency Response Team (PERT).

9. PUBLIC HEARING
a. Consideration of Introducing an Ordinance Amending San Carlos Municipal Code Chapter 18.18 - Landscaping, Replacing Sections 18.18.070 - Trees, and 18.41 - Terms and Definitions. -- Continued from City Council April 11, 2022 Meeting.

Associate Planner Rucha Dande pre sented on the proposed changes to the Protected Trees Ordinance and , along with City Attorney Greg Rubens , responded to Council questions.

Public Comment
Debbie Baldocchi, resident, spoke on the proposed Ordinance's inconsistency with the urgency Ordinance and provided multiple suggestions for edits.

Bill Chiang, PG&E representative, noted that PG&E's utility work regularly requires the need to trim and/or remove trees.

Zinovy Fichtenholz, resident, requested Council to withstand pressure from special interest groups to focus exclusively on affordable housing and protecting our environment.

Sean Williams asked Council to consider what their goal is and what the best way to accomplish it is.

Jeffrey Tepper requested Council to consider the number of trees removed by homeowners relative to the amount of trees removed by developers.

Shahriar Emami, resident, questioned the proposed Ordinance’s impact on developers’ ability to remove trees.

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Minutes Acceptance: Minutes of Apr 25, 2022 7:00 PM (CONSENT CALENDAR)

April 25, 2022 4
RESULT: Approved [Unanimous] to Close the Public Hearing.

MOVER: Ronald Collins
SECONDER: John Dugan
AYES: Rak, Dugan, Collins, Parmer-Lohan, McDowell

At Mayor McDowell's request, City Manager Jeff Maltbie and Principal Planner Andrea Mardesich responded to questions posed during public comment.

Ms. Dande, Arborist Ellyn Shea, Ms. Mardesich, Community Development Director Al Savay and City Attorney Greg Rubens responded to Council questions.

Council provided the following feedback to staff:
- update language on the protected tree list for recommended v ersus prohibited trees
- include Community Development Director as a required secondary signatory
- work with arborist to consider a verification process to ensure the health of replacement trees and include the process in the administrative document
RESULT: Introduced as A mended [Unanimous ] Ordinance 1580 Amending San Carlos Municipal Code Chapter 18.18 -
Landscaping, Replacing Sections 18.18.070 - Trees, and

18.41 - Terms and Definitions with an amendment to include the requirement of a second signature for verification when the arborist recommends fees instead of replacement.

MOVER: Adam Rak
SECONDER: John Dugan
AYES: Parmer-Lohan, Rak, Dugan, Collins, McDowell

The Council recessed at 8:48 PM and reconvened the meeting at 9:00 PM. b. Consideration of Adopting an Interim Ordinance Pursuant to Government Code Section 65858 (B) Establishing a Moratorium on the Submission, Consideration, or Approval of Applications for Lot Line Adjustments, Subdivisions, Discretionary Land Use Approvals or Building Permits Necessary for Devel opment Within the Northeast Area of the City of San Carlos, Subject to Certain Enumerated Exceptions.

Senior Planner Megan Wooley -Ousdahl provided background on the item and presented on the proposed Interim Ordinance.

Council provided the following dis closures and noted that it won't influence their decision:
- Councilmember Parmer -Lohan – her consulting business has not worked with the City nor any businesses that have applications before the City; she toured Alexandria Real Estate property and the MBC building; and has met with Premia, Princeton, Presidio Bay, Minkoff Group, Black Mountain Properties and Sobrato.
- Vice Mayor Rak - met with Minkoff Group
- Councilmember Collins – met with Presidio P artners and Black Mountain Properties

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Minutes Acceptance: Minutes of Apr 25, 2022 7:00 PM (CONSENT CALENDAR)

April 25, 2022 5
- Councilmember Dugan - met with owners of Minkoff Group and Presidio Bay
- Mayor McDowell – had informational meetings with Presidio Bay and the Minkoff Group

City Attorney Greg Rubens, Community Development Director Al Savay and Legal Counsel Michael G. Biddle responded to Council questions.

Public Comment
Clint Sholl, with G. W. Williams Company, expressed opposition to the moratorium.

Bill Chiang, PG&E Representative, disclosed that he is a paid advocate for this item and requested an exemption to the moratorium, as a state regulated utility, to continue the improvements to their service center.

Erik Ramakrishnan, legal representative for G. W. Williams Company, expressed opposition to the moratorium and threatened legal remedies if it passes tonight.

Chris Kohn, owner of properties at Old County Road and Bragato Road, spoke in opposition to the moratorium.

Cindy Ievers, Treasurer for San Mateo Dog Training Club, spoke in opposition to the moratorium.

Daniel Minkoff, with the Minkoff Group, spoke in opposition to the moratorium.

Sean Williams, with G.W. Williams Company, spoke in opposition to the moratorium.

Debbie Baldocchi, resident, spoke in opposition to the moratorium.

David Schick spoke in opposition to the moratorium.

Jim Pilch, resident and owner of a building near Downtown San Carlos, spoke in opposition to the moratorium.

Dave Cutler disclosed that he works with various members of the San Carlos business community and spoke in opposition to the moratorium.

Mark Lockenmeyer, Harbor Industri al Association President, spoke in opposition to the moratorium.

RESULT: Approved [Unanimous] to Close the Public Hearing.

MOVER: Ronald Collins
SECONDER: Laura Parmer-Lohan
AYES: Dugan, Collins, Parmer-Lohan, Rak, McDowell

Council agreed that further refinement should be made to the Ordinance regarding which types of development activity the moratorium does and does not apply to and directed staff to gather additional stakeholder input.

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Minutes Acceptance: Minutes of Apr 25, 2022 7:00 PM (CONSENT CALENDAR)

April 25, 2022 6
RESULT: Adopted [4 – 0 – 1] Ordinance 1581 an Interim Ordinance of the City Council of the City of San Carlos Pursuant to
Government Code Section 65858 (B), Establishing a
Moratorium on the Submission, Consideration or Approval of Applications for:
(i) Lot Line Adjustments and the Subdivision of Land within the Northeast Are a in Accordance with the City of San Carlos Subdivision Regulations and the Subdivision Map Act,
(ii) Design Review, Use Permit, Temporary Use Permit,
Planned Development, Zoning Amendment, Waiver, Variance, General Plan Amendment, Development Agree ment, or any
Other Discretionary Approval from the City of San Carlos Necessary for the Development of a Site within the Northeast Area in Accordance with the San Carlos Zoning Ordinance, or (iii) a Building Permit Required for Construction and/or Alterations on Property within the Northeast Area in
Accordance with the San Carlos Municipal Code, Subject to Certain Enumerated Exceptions.

MOVER: Ronald Collins
SECONDER: Laura Parmer-Lohan
AYES: Rak, Collins, Parmer-Lohan, McDowell
NAYS: None
ABSTAIN: Dugan

10. AGENDA SETTING
Councilmember Parmer-Lohan responded to Mayor McDowell's report on investig ation from earlier this evening and inquired on next steps.

City Attorney Greg Rubens responded.

Vice Mayor Rak inquired about the outreach to notify the public on the Council returning to in-person meetings.

City Manager Jeff Maltbie responded.

11. ADJOURNMENT
The meeting adjourned at 10:25 PM.

Crystal Mui,
City Clerk

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Minutes Acceptance: Minutes of Apr 25, 2022 7:00 PM (CONSENT CALENDAR)

May 25, 2022 1

San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Special Meeting
Conducted Remotely in Accordance with Assembly Bill 361 May 25, 2022, 5:00 PM

MINUTES

ROLL CALL
City Council Present: Sara McDowell, Mayor
Ronald Collins, Councilmember
John Dugan, Councilmember
Laura Parmer-Lohan, Councilmember
Adam Rak, Vice Mayor

Staff Present: Crystal Mui, City Clerk
Lisa Porras, Planning Manager
Al Savay, Community Development Director
Megan Wooley-Ousdahl, Senior Planner

1. CALL TO ORDER
The meeting was called to order at 5:02 PM by Mayor Sara McDowell.

2. PUBLIC COMMENT
None.

3. NEW BUSINESS
a. Consideration of Conducting Interviews of Select Candidates for the Downtown Advisory Committee and Make Appointments to Serve on the Committee.

Each Councilmember disclosed personal relationshi ps they have with the interviewees and noted that it will not affect their decisions this evening.

RESULT: Appointed [Unanimous] Allie Board and Donna Lera to Represent the Downtown Business Operators on the
Downtown Advisory Committee.

MOVER: Laura Parmer-Lohan
SECONDER: Adam Rak
AYES: Collins, Dugan, Parmer-Lohan, Rak, McDowell

RESULT: Appointed [Unanimous] Allison Chang and Tom Davids to Represent the Downtown Property Owners on the Downt own Advisory Committee.

MOVER: Laura Parmer-Lohan
SECONDER: Adam Rak
AYES: Collins, Dugan, Parmer-Lohan, Rak, McDowell

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Minutes Acceptance: Minutes of May 25, 2022 5:00 PM (CONSENT CALENDAR)

May 25, 2022 2
RESULT: Appointed [Unanimous] J oaquin Pedrin, Sreecharan Chandrasekharan, Elisa Espinoza and Monette Meredith to fill the At Large Seats on the Downtown Advisory Committee.

MOVER: Laura Parmer-Lohan
SECONDER: Adam Rak
AYES: Collins, Dugan, Parmer-Lohan, Rak, McDowell

RESULT: Appointed [Unanimous] Elizabeth Min, Cecile Lee, James Bertram, and Tracy Massaro to fill the Alternate Seats on t he Downtown Advisory Committee.

MOVER: Laura Parmer-Lohan
SECONDER: Adam Rak
AYES: Collins, Dugan, Parmer-Lohan, Rak, McDowell

RESULT: Appointed [ 4 – 0 – 1] Amy Buckmaster to Represent the Chamber of Commerce on the Downtown Advisory Committee
MOVER: Adam Rak
SECONDER: John Dugan
AYES: Collins, Dugan, Rak, McDowell
NAYS: None
RECUSE: Parmer-Lohan

RESULT: Appointed [Unanimous] Jean Dehner to Represent Older Adults on the Downtown Advisory Committee.

MOVER: Laura Parmer-Lohan
SECONDER: Adam Rak
AYES: Collins, Dugan, Parmer-Lohan, Rak, McDowell

RESULT: Appointed [Unanimous] Madison Blanton to Represent Special Needs on the Downtown Advisory Committee.

MOVER: Laura Parmer-Lohan
SECONDER: Rak Collins
AYES: Collins, Dugan, Parmer-Lohan, Rak, McDowell

RESULT: Appointed [Unanimous] Mark Maxwell to Represent the Parks, Recreation and Culture Commission on the Downtown
Advisory Committee.

MOVER: Laura Parmer-Lohan
SECONDER: John Dugan
AYES: Collins, Dugan, Parmer-Lohan, Rak, McDowell

RESULT: Appointed [Unan imous] Anthony Kamm to fill the Economic Development Advisory Commission Seat on the Downtown
Advisory Committee.

MOVER: Laura Parmer-Lohan
SECONDER: Ron Collins
AYES: Collins, Dugan, Parmer-Lohan, Rak, McDowell

4. ADJOURNMENT
The meeting adjourned at 9:54 PM.

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Minutes Acceptance: Minutes of May 25, 2022 5:00 PM (CONSENT CALENDAR)

May 25, 2022 3

Crystal Mui,
City Clerk

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Minutes Acceptance: Minutes of May 25, 2022 5:00 PM (CONSENT CALENDAR)

CITY COUNCIL

STAFF REPORT

MEETING DATE: June 13, 2022

ITEM TITLE: Adopt a Resolution Awarding the High Intensity Crosswalk (HAWK) Signal at Belmont Avenue -El Camino Real Project C1807; Authorize the City Manager to Execute a Public Projects Agreement with W. Bradley Electric, Inc. of Novato, CA in the Amount of $345,652; and Authorizing the Expenditure of Contingency in the Amount of $69,130.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution awarding the High-Intensity Activated Crosswalk (“ HAWK”) Signal at Belmont Avenue -El Camino Real Project (“Project”) C1807, authorizing the City Manager to execute a Public Projects Agreement with W. Bradley Electric, Inc. of Novato, CA in the amount of $345,652, and authoriz ing the expend iture of contingency in the amount of $69,130.

FISCAL IMPLICATIONS:

There is no fiscal impact and no additional appropriation is requested at this time. The Project is a part of the Annual Traffic Calming Improvement Program funded by C1807, which has a remaining budget of $1,016,139 in Fiscal Year (“FY”) 2021-22.

The lowest responsible and responsive bid received was $345,652. The total cost of the Project is $414,782 which includes a 20% contingency of $69,130. Therefore, there are sufficient funds to award the Project with the remaining budget in FY 2021-22.

BACKGROUND:

The purpose of this Project is to improve pedestrian safety at Bel mont Avenue and El Camino Real by replacing the existing pedestrian beacon that is out of date and in need of up grade and addressing pedestrian concerns at this intersection.

The Project includes removing and replacing the existing pedestrian beacon system with a HAWK signal, installing new traffic loop detectors, upgrading the existing electrical service, and installing additional traffic signage and striping to manage traffic while the HAWK signal is in use.

The City Engineer signed the final bid set construction documents on March 14, 2022 and City Council approved the construction documents at its April 25, 2022 meeting.

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2 ANALYSIS:

The Project was advertised on April 26, 2022 and bids were opened on May 24, 2022. The following table shows the engineer’s estimate along with the results of the bid in order of lowest to highest:

Contractor Total Bid Amount
Engineer’s Estimate $383,500
W. Bradley Electric $345,652
Tennyson Electric $362,760
Columbia Electric $410,500

The lowest responsible and responsive bid was submitted by W. Bradley Electric, Inc. with a total bid amount of $345,652. The variance betw een the total bid amounts and the engineer’s estimate can be attributed to the current economy as well as the bidder’s workload and other obligations.

Therefore, staff recommends awarding the Project, authorizing the City Manager to execute a Public Proj ects Agreement with W. Bradley Electric, Inc. in the amount of $345,652, and authorizing an expenditure of contingency in the amount of $69,130.

ALTERNATIVES:

Options available to the City Council include:

1. Adopt a Resolution awarding the Project, authorizing the City Manager to execute a Public Projects Agreement with W. Bradley Electric, Inc. of Novato, CA in the amount of $345,652, and authorizing the expenditure of contingency in the amount of $69,130; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida,
Public Works Director

Approved for submission by:

_________________________
Jeff Maltbie, City Manager

ATTACHMENT(S):

1. Resolution

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RESOLUTION NO. 2022 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

AWARDING THE HIGH INTENSITY CROSSWALK (HAWK) SIGNAL AT BELMONT AVENUE-EL CAMINO REAL PROJECT C1807; AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC PROJECTS AGREEMENT WITH W. BRADLEY ELECTRIC, INC OF NOVATO, CA IN THE AMOUNT OF $345,652; AND AUTHORIZING THE EXPENDITURE OF CONTINGENCY IN THE AMOUNT OF $69,130.

WHEREAS, the purpose of the HAWK Signal at Belmont Avenue-El Camino Real Project (“Project”) C1807 is to improve pedestrian safety at Be lmont Avenue and El Camino Real by replacing the existing pedestrian beacon that is out of date and in need of upgrade and addressing pedestrian concerns at this intersection; and

WHEREAS, the Project includes removing and replacing the existing pedestrian beacon system with a HAWK signal, installing new traffic loop detectors, upgrading the existing electrical service, and installing additional traffic signage and striping to manage traffic while th e HAWK signal is in use; and

WHEREAS, the City Engineer signed the final bid set construction documents on March 14, 2022 and City Council approved the construction documents at the April 25, 2022 meeting; and

WHEREAS, the Project was advertised on April 26, 2022 and bids were opened on May 24, 2022; and

WHEREAS, the lowest responsible and responsive bid was submitted by W. Bradley Electric, Inc. with a total bid amount of $345,652; and

WHEREAS, there is no fiscal impact and no additional appropriation needed at this time as there is sufficient remaining budget in C1807 in Fiscal Year 2021-22; and

WHEREAS, staff recommends awarding the Project, authorizing the City Manager to execute a Public Projects Agreement with W. Bradley Electric, Inc. in the amount of $345,652, and authorizing an expenditure of contingency in the amount of $69,130.

NOW, THEREFORE BE IT RESOLVED , that the San Carlos City Council hereby approves awarding the Project, a uthorizing the City Manager to execute a Public Projects Agreement with W. Bradley Electric, Inc. of Novato, CA in the amount of $345,652, and authorizing the expenditure of contingency in the amount of $69,130.

* * * * *

I, Crystal Mui, City Clerk, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of June 2022, by the following vote:

AYES, COUNCILMEMBERS: ___________________________________________ NOES, COUNCILMEMBERS: ___________________________________________ ABSENT, COUNCILMEMBERS: ___________________________________________

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Attachment: Resolution (Award HAWK Signal at El Camino Real and Belmont Avenue Project)

________________________________
CITY CLERK of the City of San Carlos
APPROVED:

___________________________
MAYOR of the City of San Carlos

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Attachment: Resolution (Award HAWK Signal at El Camino Real and Belmont Avenue Project)

CITY COUNCIL

STAFF REPORT

MEETING DATE: June 13, 2022

ITEM TITLE: Adopt a Resolution Ratifying the Proposed Budget for Fiscal Years 2022-24 for the Belmont-San Carlos Fire Department.

RECOMMENDATION:

Staff recommends that the City Council adopt a R esolution ratifying the Proposed Fiscal Year s (“FY”) 2022-24 Budget for the Belmont-San Carlos Fire Department (“BSCFD”).

FISCAL IMPLICATIONS:

The costs associated with the ratification of this budget total $ 2,009,131 in FY 20 22-23 and $1,927,802 in FY 2 023-24. These costs have been incorporated into the City’s Adopted Operating Budget.

BACKGROUND:

On October 1, 2010, the City terminated service with BSCFD. As a result of the termination, on September 30, 2011, BSCFD dissolved. Although the department has been dissolved, the entity will continue to exist until the last remaining obligation has been paid. The cost allocation formula set forth in the Joint Powers Agreement (“JPA”) stipulates that the Belmont Fire Protection District pay 47.1% and the City of San Carlos pay 52.9% of the total costs.

The BSCFD prepares a two -year budget that is developed by the staff and presented to the four-member BSCFD JPA Board of Directors consisting of San Carlos City Councilmembers Ron Collins and John Dugan , and Be lmont City Councilmembers Warren Lieberman and Charles Stone. Once the Board of Directors reviews and approves the Proposed Budget, the Proposed Budget and any Budget Amendments are forwarded to the governing bodies of the two parent agencies (Belmont Fire Protection District and City of San Carlos) as a Major Decision under the JPA terms for review and ratification. The BSCFD Board of Directors approved the Proposed FY 202 2-24 Budget at its meeting held on May 24, 2022 via BSCFD Resolution 2022-002 (Attachment 3).

ANALYSIS:

The Budget generally includes non -discretionary expenditures. Overall, member agencies contributions increase 6.4% in FY 2022-23, and then decrease 4.0% in FY 20 23-24. The main driver is pension obligations.

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2  CalPERS pension cost increases 8% to $3.6 million in FY 2022-23, and then decreases to $3.5 million in FY 2023-24.
o FY 2022-23 reflects CalPERS’s returns at 4.7% as of June 30, 2020 , which is lower than the targeted 7% and creates an increase in cost. o FY 2023-24 reflects a decrease due to higher investment returns of 21.3% as of June 30, 2021, offset by a reduction in the discount rate from 7% to 6.8% which was approved by the CalPERS Board in November 2021.

 Similar to San Carlos, BSCFD is a member of the California Employers’ Ret iree Benefit Trust (“CERBT”) to fund its Other Post -Employment Benefits (“OPEB”) . Based on the actuarial valuation on BSCFD’s retiree healthcare plan, the actuarially determined contributions (“ADC”) into CERBT are lower in each fiscal year than the pay -go retiree health benefits that are paid outside of the trust . This means that BSCFD can request a reimbursement from CERBT on the difference between the ADC and the pay -go payments. To that end, the reimbursements have been i ncluded in the budget, which helps offset increases in member agencies contributions while still keeping the CERBT plan on track for funding.

 Administrative support cost has been adjusted down slightly from $66,855 to $59,195 in FY 20 2-23 to reflect the current baseline level and expec tation that administering BSCFD is getting more efficient/stabilized. The cost then goes up in FY 202 3-24 to assume staff increases.

 Fund balance has been retained at $150,000 to maintain the reserve requirement for BSCFD.

The contributions to be paid by the member agencies are as follows:

Agency FY 2022-23 FY 2023-24
Belmont Fire Protection District $ 1,792,093 $ 1,719,818 City of San Carlos 2,009,131 1,927,802
Total Contribution $ 3,801,224 $ 3,647,620

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution ratifying the Proposed Fiscal Years 2022-24 Budget for the Belmont- San Carlos Fire Department.; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall,
Administrative Services Director

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3 Approved for submission by:

_________________________
Jeff Maltbie, City Manager

ATTACHMENT(S):

1. Resolution

2. BSCFD FY2022-24 Budget

3. Resolution 2022-02 - BSCFD FY 2023-2024 Budget

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RESOLUTION NO. 2022- _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS RATIFYING THE PROPOSED BUDGET FOR FISCAL YEARS 2022-24 FOR THE BELMONT-SAN CARLOS FIRE DEPARTMENT.

WHEREAS, the Board of the Belmont -San Carlos Fire Department approved the F iscal Years (“FY”) 2022-24 Proposed Budget at its meeting on May 24, 2022; and

WHEREAS, the cost allocation formula stipulates that the City of San Carlos pay 52.9% and the Belmont Fire Protection District pay 47.1%; and

WHEREAS, approval of the budget qualifies as a major decision and requires the approval of the member agencies before it can be implemented; and

WHEREAS, these costs will be incorporated into the City of San Carlos’ Proposed Budgets to cover the City’s share of the obligation.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Carlos hereby ratifies the FY 2022-24 Proposed Budget of the Belmont-San Carlos Fire Department.

*****
I, Crystal Mui, City Clerk, hereby certify the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of June, 2022, by the following vote:

AYES, COUNCILMEMBERS: _____________________________________ ______ NOES, COUNCILMEMBERS: _____________________________________ ____________ ABSENT, COUNCILMEMBERS: ___________________________________ ______

______________________________
CITY CLERK of the City of San Carlos
APPROVED:
____________________________
MAYOR of the City of San Carlos

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Attachment: Resolution (Adopt BSCFD FY 22-24 Budget)
Pag
e 1 of 3
BSCFD FY 2023 & FY 2024 Budgets

STAFF REPORT
Meeting Date: May 24, 2022
Agency: Belmont-San Carlos Fire Department
Staff Contact: Grace Castaneda, Controller, [email protected] Agenda Title: Resolution Recommending the FY 2023 and FY 2024 Budgets to the Belmont Fire Protection District and the City of San Carlos and Adoption of the Budgets Upon Ratification by the Member Agencies
Agenda Action: Resolution
Reco
mmendation
Approve the proposed Budgets for FY 2023 and FY 2024 to the Belmont Fire Protection District and the City of San Carlos and adopt resolution recomm ending adoption of the Budgets upon ratification by the Member Agencies.

St
rategic Focus Area
Not Applicable
Bac
kground
On October 1, 2011, the Belmont-San Carlos Fire Department, a Joint Powers Authority or JPA, entered into a post-operations era with the primary function of winding down the legacy obligations incurred during the prior operation of the jointly funded fire department.

At
present, there are four important wind-down activities of the JPA:

1. Paying for the unfunded liabilities of the safety and miscellaneous retirement plans with CalPERS.

2. Paying for other post-employment benefits for retirees who have earned lifetime medical coverage.

3. Paying for outstanding workers compensation claims from past employees of the Fire Department.

4. Paying for other obligations of the former Fire Department.

An
alysis
As required by agreement, the JPA is to prepare a budget setting forth the expenditures and cost allocation for the upcoming year. The cost allocation formula by the member agencies stipulates the Belmont Fire Protection district pay 47.1% and the City of San Carlos 52.9%. Administrative support service costs are split equally amongst the member agencies. Contributions paid by the member agencies increase modestly in FY 2023, followed by a decrease in FY 2024 as follows: Belmont Fire Protection District ($1,792,093 in FY 2023 and $1,719,818 in FY 2024 - 47.1%) and the City of San Carlos ($2,009,131 in FY 2023 and $1,927,802 in FY 2024 - 52.9%).

The
Budgets generally include non -discretionary expenditures. Important highlights include the following:

Agenda Item #9(A)

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget)

BSCFD FY 2023 & FY 2024 Budgets

1. Below is a summary of the outstanding pension obligations based on CalPERS ’s June 30, 2020 actuarial valuation:

Plan Unfunded Accrued Liability
Safety $32,090,713
Miscellaneous $1,046,543

In furtherance of retiring these obligations, the Budget includes payments to CalPERS of $3,632,911 in FY 2023 and $3,470,062 in FY 2024. These amounts factor in a prepayment of the contribution in one annual payment at the beginning of each fiscal year, and no additional discretionary payments towards retiring the obligation. The FY 2023 cost reflects CalPERS’s investment returns of 4.7% as of June 30, 2020 and a discount rate of 7% that is phasing in to the rates. The FY 2024 cost is lower primarily because it reflects CalPERS’s investments returns of

21.3% as of June 30, 2021. It also factors in CalPERS’s Funding Risk Mitigation Policy and the results of the Asset Liability Management process from November 2021 that lowered the discount rate to 6.8%.

2. The outstanding postretirement health benefit obligation, net of plan assets in the California Employers' Retiree Benefit Trust (CERBT) fund, is $1,051,841. The Budget includes Other Post- Employment Benefits (OPEB) benefit payments made on a pay-go basis for retirees and surviving spouse who have earned lifetime medical coverage, $192,571 in FY 2023 and $181,182 in FY 2024. Based on the actuarial valuation on the Department’s retiree healthcare plan, the actuarially determined contributions (ADC) into CERBT are lower in each fiscal year than the pay-go benefit payments that are paid outside of the trust , which means that the Department can request a reimbursement from CERBT on the difference between the ADC and the pay -go payments. To that end, the Budget includes reimbursements from CERBT, $95,955 in FY 2023 and $84,613 in FY 2024. The reimbursements help to counter increases in member agencies contributions, while still keeping the CERBT plan on track for funding.

3. The Budget assumes a prudent fiscal reserve of $178,036 in FY 2023, and then lowering the reserve to $150,000 in FY 2024, which is the stated minimum reserve for the entity.

The Budget has been reviewed by the Member Agencies’ City Managers and is recommend for adoption.

Should the Fire Commission concur with the recommendation of the City Managers, the Budget will be sent to the Member Agencies for ratification. Upon ratification by the Member Agencies, the Budget will be formally adopted.

The Fire Department continues to follow the previously adopted Budgetary Policies, which are attached to the Proposed Budget.

Alternatives

1. Amend the resolution(s) and adopt an alternative budget.

2. With direction, refer the Budget to staff for further consideration.

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget)

BSCFD FY 2023 & FY 2024 Budgets
Attachments
A. Resolution
B. Proposed FY 2023 and FY 2024 Budgets

Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed: Establish the budget sources and (uses) as follows:

FY 2023 FY 2024
Revenues $3,895,205 $3,730,259
Appropriations 3,922,996 3,758,295
Fund Balance Reserves 178,036 150,000

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda

*In addition to posting of agenda, this item was publicly noticed

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget)

RESOLUTION NO.

RESOLUTION OF THE BELMONT-SAN CARLOS FIRE DEPARTMENT RECOMMENDING THE FY 2023 AND FY 2024 BUDGET TO THE BELMONT FIRE PROTECTION DISTRICT

AND THE CITY OF SAN CARLOS AND ADOPTION OF THE BUDGETS UPON

RATIFICATION BY THE MEMBER AGENCIES

WHEREAS, pursuant to the J oint Powers Agreement, the Fire Department to prepare a budget setting forth the expenditures for supplies and services subsequent to service termination; and,

WHEREAS, the Budget has been reviewed by the M ember Agencies’ City Managers who recommend adoption; and,

WHEREAS, the cost allocation formula stipulates the Belmont Fire Protection District pay 47.1% and the City of San Carlos 52.9%, with administrative support services shared equally; and,

WHEREAS, this decision qualifies as a Major Decision and requires the approval of the Member Agencies before it can be implemented; and,

WHEREAS, the Fire Commission intends to implement the budget immediately upon ratification by the Member Agencies.

NOW, THEREFORE, BE IT RESOLVED that the Fire Commission of the Belmont-San Carlos Fire Department finds the FY 2023 and FY 2024 Budgets to be balanced and establishes an appropriation of $3,922,996 for FY 2023 and $3,758,295 for FY 2024 for the disbursement of expenditures to meet the obligations of the Department for the fiscal years; and,

BE IT FURTHER RESOLVED that the Fire Commission of the Belmont- San Carlos Fire Department further authorizes the appropriation of all remaining sums from fund balance and delegates authority to the City Managers to approve amendments to the Budget as may be required for the disbursement of expenditures to meet the obligations of the Department consistent with established policy; and,

BE IT FURTHER RESOLVED that the Fire Commission of the Belmont- San Carlos Fire Department establishes contributions to be paid by the member agencies as follows: Belmont Fi re Protection District ($ 1,792,093 in FY 2023 and $1,719,818 in FY 2024) and the City of San Carlos ($2,009,131 in FY 2023 and $1,927,802 in FY 2024); and,

BE IT FURTHER RESOLVED that the Fire Commission of the Belmont- San Carlos Fire Department recommends the proposed FY 2023 and FY 2024 Budgets to the Belmont Fire Protection District and the City of San Carlos and, upon ratification of the proposed FY 2023 and FY 2024 Budgets by the Belmont Fire Protection District Board and San Carlos City Council, the Budgets shall be deemed adopted by the Fire Commission.

* * *

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) I hereby certify that the foregoing Resoluti on was duly and regularly passed and adopted by the Fire Commission of the Belmont -San Carlos Fire Department at a Special Meeting thereof held on the 24th day of May, 2022 by the following vote:

AYES, COMMISSIONERS:____________________________________________

NOES, COMMISSIONERS:____________________________________________

ABSTAIN, COMMISSIONERS:____________________________________________

ABSENT, COMMISSIONERS:____________________________________________

_______________________________________________
Secretary of the Belmont-San Carlos Fire Department

APPROVED:

_______________________________________________
Chair of the Belmont-San Carlos Fire Department

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) Belmont‐San Carlos Fire Department
Fiscal Years 2023 & 2024 Budgets

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) Belmont-San Carlos Fire Department
Fiscal Years 2023 & 2024 Budgets
Table of Contents

Budget Summary ...................................................................................... 1 Summaries and Operating Budget
Fund Recap – Fiscal Years 2022 through 2024 ............................................. 3 Revenues and Other Sources & Expenditures and Other Uses by Fund and Function .................................................................................................... 4 Department Summary by Division and Expenditure Classification .................. 5 Appendix ................................................................................................... 6

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget)

Belmont-San Carlos Fire Department
Budget Fiscal Years 2023 and 2024
Budget Summary

The proposed Fiscal Years 2023 and 2024 Budget reflects the Department’s obligations in a post- operations era since the September 30, 2011 dissolution. The Budget fund s the following wind- down activities of the Department:

▪ Below is a summary of the outstanding pension obligations based on CalPERS’s June 30, 2020 actuarial valuation:

Plan Unfunded Accrued Liability
Safety $32,090,713
Miscellaneous $1,046,543

In furtherance of retiring these obligations, the Budget includes payments to CalPERS of $3,632,911 in FY 2023 and $3,470,062 in FY 2024. These amounts factor in a prepayment discount of the contribution in one annual payment at the beginning of each fiscal year, and no additional discretionary payments towards retiring the obligation. The FY 2023 cost reflects CalPERS’s investment returns of 4.7% as of June 30, 2020 and a discount rate of 7% that is phasing in to the rates. The FY 2024 cost is lower primarily because it reflects CalPERS’s investments returns of 21.3% as of June 30, 2021. It also factors in CalPERS’s Funding Risk Mitigation Policy and the results of the Asset Liability Management process from November 2021 that lowered the discount rate to 6.8%.

▪ Based on Bartel’s June 30, 2021 actuarial valuation, the outstanding postretirement health benefit obligation , net of plan assets in the California Employers' Retiree Benefit Trust (CERBT) fund, is $1,051,841 . The Budget includes Other Post -Employment Benefits (OPEB) benefit payments made on a pay -go basis for retirees and surviving spouse who have earned lifetime medical coverage, $192,571 in FY 2023 and $181,182 in FY 2024. Based on the actuarial valuation, the actuarially determined contributions (ADC) into CERBT are lower in each fiscal year than the pay-go benefit payments that are paid outside of the trust , which means that the Department can request a reimbursement from CERBT on the difference between the ADC and the pay-go payments. To that end , the Budget includes reimbursements from CERBT , $95,955 in FY 2023 and $84,61 3 in FY 2024. The reimbursements help to counter increases in member agencies contributions, while still keeping the CERBT plan on track for funding.

▪ The estimated liability for unpaid loss and allocated loss adjustment expenses ranges from $117,000 (70% confidence level) to $212,000 (90% confidence level) estimated as of June 30, 202 3 for o utstanding workers compensation claims from past employees . The Fire Department estimates claims payments of $17,227 in FY 2023 and $17,950 in FY 2024.

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget)

▪ Staff performed a review of the ongoing support required to carry-out the above activities, and with the expectation that administering the legacy activities of the Department is becoming more efficient, the Budget for administrative and professional services have been lowered to $59,195 in FY 2023 and $61,681 in FY 2024.

As a result of the above activity and the need to maintain the reserve requirement discussed below, contributions paid by the member agencies increase modestly in FY 2023, followed by a decrease in FY 2024 as follows: Belmont Fire Protection District ($1,792,093 in FY 2023 and $1,719,818 in FY 2024 - 47.1%) and the City of San Carlos ($ 2,009,131 in FY 2023 and $1,927,802 in FY 2024 - 52.9%).

The Budget assumes a prudent fiscal reserve of $178,036 in FY 202 3, and then lowering the reserve to $150,000 in FY 2024, which is the stated minimum reserve for the entity.

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) Reserved or Reserved or Reserved or Reserved or
Number Description Designated Available Revenues Expenditures Designated Available Revenues Expenditures Designated Available Revenues Expenditures Designated Available

GENERAL FUND
105 General Fund 150,000$ 148,212$ 3,571,406$ 3,663,791$ 150,000$ 55,827$ 3,895,205$ 3,922,996$ 150,000$ 28,036$ 3,730,259$ 3,758,295$ 150,000$ (0)$ 5/11/2022 10:35
Belmont-San Carlos Fire Department
FY 2023 & FY 2024 Budget
Fund Recap
Fiscal Years 2022 through 2024
Audited Fund Balance Estimated Fund Balance Proposed Fund Balance Fund Estimated Proposed Proposed
Proposed Fund Balance
7/1/2021 FY 2022 6/30/2022 FY 2023 6/30/2023 FY 2024 6/30/2024

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) Account/Division FY2021 FY2022 FY2023 FY2024
Fund Number Description Actual Estimated Proposed Proposed Revenues & Other Sources
105 6628 BELMONT FIRE DISTRICT SERVICES 1,687,055 1,685,001 1,792,093 1,719,818 105 6629 CITY OF SAN CARLOS SERVICES 1,890,787 1,888,379 2,009,131 1,927,802 Service Charges 3,577,842 3,573,380 3,801,224 3,647,620 105 7111 Interest Earnings-Investments (3,971) 694 694 694 105 7112 Other Interest Earnings (2,546) (2,667) (2,667) (2,667) Use of Money/Property (6,517) (1,974) (1,974) (1,974) 105 7252 Refunds and Rebates - - 95,955 84,613 Miscellaneous - - 95,955 84,613 General Fund 3,571,325 3,571,406 3,895,205 3,730,259 TOTAL REVENUES AND OTHER SOURCES 3,571,325 3,571,406 3,895,205 3,730,259 Expenditures & Other Uses
105 Dissolution Costs 3,601,121 3,663,791 3,922,996 3,758,295 Public Safety 3,601,121 3,663,791 3,922,996 3,758,295 General Fund 3,601,121 3,663,791 3,922,996 3,758,295 TOTAL EXPENDITURES AND OTHER USES 3,601,121 3,663,791 3,922,996 3,758,295 5/11/2022 10:35
Belmont-San Carlos Fire Department
FY 2023 & FY 2024 Budget
Revenues and Other Sources & Expenditures and Other Uses

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) Division: 4222 Dissolution Costs Dissolution Costs
Fund: 105 General Fund Fire Department
Actual Estimated Proposed Proposed
Account Account Description FY2021 FY2022 FY2023 FY2024 Personnel
8120 PERS Legacy Costs 3,271,512$ 3,366,361$ 3,632,911$ 3,470,062$ Personnel Total 3,271,512$ 3,366,361$ 3,632,911$ 3,470,062$ Supplies & Services
8351 Other Professional/Technical 15,863$ 19,637$ 15,272$ 21,355$ 8363 Bank Service Fees - 5,585 5,820 6,064 8519 OPEB ADC/PayGo Contribution 224,099 188,821 192,571 181,182 8598 Claims-Workers' Compensation 24,422 16,533 17,227 17,950 Supplies & Services Total 264,384$ 230,576$ 230,890$ 226,552$ Administrative & Other
8310 Administrative Support Service 65,225$ 66,855$ 59,195$ 61,681$ Administrative & Other Total 65,225$ 66,855$ 59,195$ 61,681$ Total Expenditures 3,601,120$ 3,663,791$ 3,922,996$ 3,758,295$ Account Account Description Amount
8120 PERS Legacy Costs 3,632,911$
3,470,062$
8351 Other Professional/Technical 15,272$
21,355$
8363 Bank Service Fees 5,820$
6,064$
8519 OPEB ARC Contribution
192,571$
181,182$
8598 Claims-Workers' Compensation 17,227$
17,950$
8310 Administrative Support Services 59,195$
61,681$
Notes
FY 23 - Amounts provided by CalPERS. Miscellaneous - $113,980, Safety - $3,492,890 and IRC Section 415(b) Replacement Benefit Plan - $26,041. 47.1%-Belmont/52.9%-San Carlos split.

FY 24 - Amounts provided by CalPERS. Miscellaneous - $106,700, Safety - $3,336,800 and IRC Section 415(b) Replacement Benefit Plan - $26,562. 47.1%-Belmont/52.9%-San Carlos split.

Multi-year agreement with City of Belmont, including financial, treasury, debt, and risk management, subject to CPI increase. 50/50 split amongst agencies.

Multi-year agreement with City of Belmont, including financial, treasury, debt, and risk management, subject to CPI increase. 50/50 split amongst agencies.

Legal, accounting, actuary and workers compensation claim administration services. CPI increase. 47.1%/52.9% split.

Legal, accounting, actuary and workers compensation claim administration services. CPI increase. 47.1%/52.9% split.

Per Bartel actuarial report, April 27, 2022. Using greater of ADC or PayGo (Expected Retiree Benefit Payments). 47.1%/52.9% split.

Per Bartel actuarial report, April 27, 2022. Using greater of ADC or PayGo (Expected Retiree Benefit Payments). 47.1%/52.9% split.

Legacy claims cost based on actuarial Worker's Compensation Program.

47.1%/52.9% split.

Legacy claims cost based on actuarial Worker's Compensation Program.

47.1%/52.9% split.

Service fees for banking services. Bank fees have offset interest income in prior years. CPI increase. 47.1%/52.9% split.

Service fees for banking services. CPI increase. 47.1%/52.9% split.

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget)

APPENDIX

What is the Basis for the Belmont-San Carlos Fire Department Budget? The Belmont-San Carlos Fire Department prepares its budget using the modified accrual basis of accounting whereby revenues are recognized when they become measurable and available.

Likewise, expenditures are recognized when an event or transaction is expected to draw upon current spendable resources.

What are the Budgetary Policies of the Belmont-San Carlos Fire Department? The Belmont-San Carlos Fire Department operates under a set of budget policies which guide the development of the budget. These policies are presented below.

• Where possible, General Fund revenues, operating expenditures and transfers should balance on a "current" basis.

• Supplemental appropriations during the fiscal year require an appropriations adjustment resolution to be passed by the Fire Board.

• In cases where there is an increase in the size of the budget due to an appropriation increase, the resolution requires an offsetting change in fund balance, unless the added cost is accompanied by an unanticipated increase in revenue to the General Fund. If such an offset occurs then there is no change to the fund balance, but the increase in revenue and the source of that revenue is to be shown in the appropriations adjustment resolution.

• Where the increased appropriation is to be funded from a restricted sour ce and no offsetting revenue is identified, the resolution must show a decrease in fund balance from the balance that was expected when the budget was adopted.

What are Funds?
Perhaps the biggest perplexities encountered by someone examining the budget or financial statements of a government agency for the first time is the existence of numerous "funds." Whereas even the largest commercial enterprise generally will report only a single amount for each item in its financial statements (e.g., "cash," "sales"), governments, both large and small, will typically report a number of separate columns or "funds."

Each of these funds is considered to function as a separate fiscal and accounting entity. Funds are normally used by governments to segregate resources related to specific activities (e.g., general operations, capital projects). For most governments, the principal operating fund is known as the "General Fund."

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) What Different Kinds of Funds do Governments Use?
Governments may use any number of individu al funds in their budgeting and financial reporting (although they are encouraged to use the least number of funds practical in their specific circumstances). Regardless of the number of individual funds used, generally accepted accounting principles (GAAP) require all of these individual funds to be aggregated into no more than seven specified "fund types" on the combined balance sheet.

Four of these fund types are known as the "governmental funds." They are the General Fund, the special revenue funds, the debt service funds, and the capital project funds. These funds are typically used to account for most of a government's operations and capital expenditures.

Two other funds types are known as the "proprietary funds" because they function in a manner similar to private enterprise. These funds are the enterprise (or service) funds and the internal service funds. The last of the seven fund types that may be found on a government’s combined balance sheet or in a budget document is the trust and agency fund. The Belmont-San Carlos Fire Department only uses a General Fund.

General Fund
The General Fund is used to account for the financial resources and expenditures associated with most Department operations where revenue is not required to be recorded in a separate fund. As the name implies, revenues collected in this fund are not restricted as to which division or purpose they may be expended.

The sources of revenue for the General Fund are primarily from service charges and the use of money and property held by the Department.

Is "Unassigned Fund Balance" a Good Measure of Economic Health? "Unassigned” or “available” fund balance is not designated to reflect economic health but simply to provide a measure of the financial resources available for future spending or appropriation. While an absence of spendable resources may well be an indication of actual or potential economic problems, the presence of such resources is no guarantee of sound economic health. For example, just as an individual can increase his or her checkbook balance by taking out a loan, so too can a governmental fund increase its spendable resources (i.e., " unassigned fund balance") by issuing long-term debt.

In neither case would the economic position of the individual or government be improved because the debt must be repaid. Accordingly, a significant leve l of " unassigned fund balance" should not be taken alone as evidence of sound economic health. Rather, users of government financial statements should also take care to evaluate future claims on governmental fund assets when assessing the economic health of a governmental fund. In particular, users should be careful to consider a governmental fund's obligation to finance long-term debt (reported separately in the general long-term debt account group), as well as the potential future drain on governmental fund resources posed by deficits in other funds (e.g., enterprise funds).

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) How High a Level of "Unassigned” or “Available” Fund Balance Should be Maintained in the General Fund?
There is little argument that a deficit "unassigned” or “available” fund balance is normally to be avoided. Indeed, such deficits are illegal in a number of jurisdictions. The "right amount" of unassigned fund balance, however, is a question open to debate, particularly in the General Fund. Bond raters and others often use "rules of thumb" to measure the adequacy of unreserved fund balance in the General Fund. For example, 5 percent of annual operating expenditures is a commonly used amount. Others argue that unassigned fund balance should equal no les s than one month's operating expenditures (i.e., 8.3%). Care must be taken, however, to avoid applying such rules of thumb mechanically. A variety of factors must be taken into account when evaluating the adequacy of fund balance in the General Fund.

One important consideration is the reliability of a governmental agency's revenue sources.

Whereas some governmental revenues are traditionally quite stable, others often can vary significantly depending on conditions in the economy (e.g., interest income). Governments depending upon less reliable revenue sources may need to maintain significantly higher levels of unreserved fund balance than those relying upon more stable sources of revenue.

Another important factor is the timing of cash inflows and outflows. Governments whose cash flows are less predictable or uneven because of the timing of revenue collections may need relatively higher levels of unreserved fund balance to maintain liquidity than those with highly predictable continuous cash inflows and outflows.

A third important consideration involves resources available in other funds. Some governments, for example, establish separate "budget stabilization funds" to meet unexpected contingencies. When such additional resources are available in other funds, a lessor amount of unreserved fund balance may be appropriate in the General Fund.

In short, the specific financial history, prospects and circumstances of each individual government must be carefully weighed when evaluating the adequacy of "unassigned fund balance."

In Belmont-San Carlos Fire Department's case, the revenue stream is stable, predictable and known. Accordingly, the Board has not set an established policy on the balance of unassigned fund balance of the General Fund.

Why Does the Department Prepare a Budget?
Any government entity prepares a budget for more than one reason. The first is that it has a legal obligation to do so. But of equal importance, for Belmont-San Carlos Fire Department, is that the budget sets forth the basic spending policy of the Fire Board.

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) Each year the Board adopts a budget for the upcoming fiscal year. The approved budget for the upcoming year is reviewed and revised as necessary and a budget for the year following is presented, deliberated on and approved as a part of the budget plan. The Department's fiscal year begins on July 1st. The budget, therefore, will remain in effect through June 30th. There are two major sections of the budget. The revenue side describes the sources and amounts of revenue the Department expects to receive over the fiscal year period. The expenditure or appropriations side describes how much money will be spent from either current revenues or from existing fund.

A final important purpose to remember about the budget document is that it is a plan. The projected revenues and the expenditures are estimates. Many incidents can happen throughout a year to change either revenue expectations or expenditure needs. The Department tries to budget as accurately as possible. Should things change, however, there is a process in place to amend the budget document. Supplemental appropriations resolutions are presented to the Board during the budget cycle to add appropriations .. Sometimes these changes will be accompanied by an offsetting additional source of revenue, neutralizing the possible impact on the expected ending fund balance of the relevant fund. Other times these changes will require fund balances be used, reducing the amount of the fund balance from what was projected at the beginning of the year.

How Does the Department Prepare its Budget?
The Belmont-San Carlos Fire Department prepares a budget through a tra ditional budget process. The Controller prepares a rough draft of the budget with input from the City Managers of Belmont and San Carlos . Once this phase has been completed, a final draft budget document is prepared, reviewed, considered and adopted by the Fire Board at a public hearing. Finally, the Belmont Fire Protection District and City of San Carlos will ratify the budget adopted by the Board.

Major Revenue Sources
Belmont Fire Protection District/City of San Carlos Service Charges - This revenue source is derived from charging each agency for the obligations of t he Department.

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget) Glossary of Terms

Administrative & other - A budget category that accounts for all administrative support charges, principal and interest payments, and transfers between funds required to support the fund.

Appropriation - Money budgeted for a given division. Appropriations are the means by which legal authority is given to expend public monies. The appropriation is the maximum level of expenditure authorized.

Budget - A plan of financial and division operation which lists appropriations and the means of financing them for a given time period. Belmont-San Carlos Fire Department adopts a one-year plan.

Encumbrance - Financial commitments related to unperformed services or contracts for goods for which part of an appropriation has been reserved.

Expenditure - Appropriated funds which have been spent.

Fiscal year - A twelve-month period used for budgeting, accounting or revenue reporting purposes. California agencies operate on a July 1 to June 30 fiscal basis.

Fund - An independent fiscal and accounting term used to record all financial transactions related to the specific purpose for which the fund was created.

Revenue - Amounts received for intergovernmental sources, service charges, interest and use of property and other income.

Supplies & services - A budget category that accounts for all supplies, goods and services required to support the division.

N:\Common\BUDGET\FY 18-19 Budget\BSCFD\Appendix.docx

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Attachment: BSCFD FY2022-24 Budget (Adopt BSCFD FY 22-24 Budget)

RESOLUTION NO. 2022-02 RESOLUTION OF THE BELMONT-SAN CARLOS FIRE DEPARTMENT RECOMMENDING THE FY 2023 AND FY 2024 BUDGET TO THE BELMONT FIRE PROTECTION DISTRICT AND THE CITY OF SAN CARLOS AND ADOPTION OF THE BUDGETS UPON RATIFICATION BY THE MEMBER AGENCIES WHEREAS, pursuant to the Joint Powers Agreement, the Fire Department to prepare a budget setting forth the expenditures for supplies and services subsequent to service termination; and, WHEREAS, the Budget has been reviewed by the Member Agencies’ City Managers who recommend adoption; and, WHEREAS, the cost allocation formula stipulates the Belmont Fire Protection District pay 47.1% and the City of San Carlos 52.9%, with administrative support services shared equally; and, WHEREAS, this decision qualifies as a Major Decision and requires the approval of the Member Agencies before it can be implemented; and, WHEREAS, the Fire Commission intends to implement the budget immediately upon ratification by the Member Agencies. NOW, THEREFORE, BE IT RESOLVED that the Fire Commission of the Belmont-San Carlos Fire Department finds the FY 2023 and FY 2024 Budgets to be balanced and establishes an appropriation of $3,922,996 for FY 2023 and $3,758,295 for FY 2024 for the disbursement of expenditures to meet the obligations of the Department for the fiscal years; and, BE IT FURTHER RESOLVED that the Fire Commission of the Belmont-San Carlos Fire Department further authorizes the appropriation of all remaining sums from fund balance and delegates authority to the City Managers to approve amendments to the Budget as may be required for the disbursement of expenditures to meet the obligations of the Department consistent with established policy; and, BE IT FURTHER RESOLVED that the Fire Commission of the Belmont-San Carlos Fire Department establishes contributions to be paid by the member agencies as follows: Belmont Fire Protection District ($1,792,093 in FY 2023 and $1,719,818 in FY 2024) and the City of San Carlos ($2,009,131 in FY 2023 and $1,927,802 in FY 2024); and, BE IT FURTHER RESOLVED that the Fire Commission of the Belmont-San Carlos Fire Department recommends the proposed FY 2023 and FY 2024 Budgets to the Belmont Fire Protection District and the City of San Carlos and, upon ratification of the proposed FY 2023 and FY 2024 Budgets by the Belmont Fire Protection District Board and San Carlos City Council, the Budgets shall be deemed adopted by the Fire Commission. * * *

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Attachment: Resolution 2022-02 - BSCFD FY 2023-2024 Budget (Adopt BSCFD FY 22-24 Budget) I hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the Fire Commission of the Belmont-San Carlos Fire Department at a Special Meeting thereof held on the 24th day of May, 2022 by the following vote:

AYES, COMMISSIONERS: Collins, Dugan, Stone, and Chair Lieberman NOES, COMMISSIONERS: None
ABSTAIN, COMMISSIONERS: None
ABSENT, COMMISSIONERS: None
_______________________________________________
Secretary of the Belmont-San Carlos Fire Department
APPROVED:
_______________________________________________
Chair of the Belmont-San Carlos Fire Department

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Attachment: Resolution 2022-02 - BSCFD FY 2023-2024 Budget (Adopt BSCFD FY 22-24 Budget)

CITY COUNCIL

STAFF REPORT

MEETING DATE: June 13, 2022

ITEM TITLE: Adopt a Resolution Approving Amendment 4 (Exhibit B -1) to the Law Enforcement Services Agreement with the San Mateo County Sheriff's Office, Including the Fiscal Year 2022 -23 Payment of $11,086,640, and the Approval of the Use of Prior Year Savings in the Amount of $228,540 for Police Services.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution approving Amendment No. 4 (Exhibit B-1) to the Law Enforcement Servi ces Agreement with the San Mateo County Sheriff's Office, including the Fiscal Year 202 2-23 Payment of $11,086,640 and the approval of the use of prior year savings in the amount of $228,540 for police services.

FISCAL IMPLICATIONS:

Each year, in conjunc tion with the budget, the City Council will consider for approval an amendment to Exhibit B (cost of services) of the San Mateo County Sheriff’s Agreement (“Agreement”). The total charges for F iscal Year (“F Y”) 2022-23 are $ 11,086,640. This is an increase of $1,030,068, or 10.2%, from last year.

The total Adopted FY 2022 -23 Budget for these services is $10, 858,100. Therefore, it is recommended that the City utilize prior year savings to cover the additional amount of $228,540.

As per Section 3.1.2 of the Agreement, if the actual costs of services are less than the calculated totals in Exhibit B -1 for FY 2022 -23, the excess will be set aside to be used at the City’s discretion. In FY 2020 -21, the City utilized $300,000 of this account to offset the total contracted amount for that fiscal year. As of December 31, 202 1, the balance in this account is $288,441.

Per Section 3.5 of the Agreement, the total contract value will be credited by the amount paid to CalPERS for retirement obligations from the former p olice department, which is estimated to be $2,196,797.

In summary, the contract amount will be funded from the following sources in the FY 202 2-23 Operating Budget:

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2 Fund Account Number Total Amount FY 22-23 Budget Use of Prior Year Savings
General Fund (1) 01413000 520320 PDOSR 8,489,843 8,252,000 237,843 General Fund (2) 01413000 512004 PDOSR 2,196,797 2,206,100 (9,303) General Fund (3) 01413000 520320 SCDSU 250,000 250,000 - Police Grants Fund (4) 17000000 520320 PDOSR 150,000 150,000 - Totals $11,086,640 $10,858,100 $228,540

Funding Sources:

1) General Fund Account 01413000 520320 PDOSR is the primary account used to pay for these police services. It is budgeted based on the contractual obligations that the Council approves on an annual basis.

2) General Fund Account 01413000 512004 PDOSR is the primary account used to pay for the unfunded liabilities of the former police department. The amount budgeted is based on CalPERS actuarial reports.

3) General Fund Account 01413000 520320 SCDSU is the account that was created to track the charges associated with the Downtown Services Unit , or Laurel Street Policing Program.

4) Police Grant Fund 17000000 520320 PDOSR is a restricted account that can only be used for front line municipal police services and must supplement, not supplant, existing funding. In FY 1996-97, the California State Legislature enacted Chapter 134 (Assembly Bill 3229 (Brutle)), creating the Citizen’s Option for Public Safety (“COPS”) Program.

Under the COPS Program, cities and counties receive state funds to augment public safety expenditures. The City Council is required to cons ider the written request of the Chief of Police for use of these funds. In prior years, this funding has been used to cover the costs of an additional motorcycle deputy, automated license plate readers, and equipment for the Emergency Operations Center.

The estimated balance in the fund as of June 30, 202 2 is approximately $259,700. It is recommended that next fiscal year, the funding be used to pay for the motorcycle deputy in the amount of $100,000 and Driving Under the Influence (“DUI”) enforcement to taling $50,000.

BACKGROUND:

On June 22, 2020, the City Council approved a five-year renewal of the Agreement with the San Mateo County Sheriff’s Office to provide law enforcement services to the City of San Carlos.

Each year, in conjunction with budget adoption, the City Council considers for approval an amendment of the Exhibit B-1 (Rates/Payments) of the Agreement.

The City’s Agreement with the San Mateo County Sheriff’s Office (“Sheriff’s Office”) includes police management, patrol, investigation, t raffic enforcement, community and school services , and support service components. The Agreement maintains minimum staffing levels for patrol, provides for quick response times, and restores many of the key community programs that San Carlos Police had provided. The Agreement originally went into effect on October 31, 2010, and the current contract will end June 30, 2025.

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3 The Agreement includes the following assignment of personnel:

Position # of FTE
Captain 0.8
Sergeants 5
Deputies/Detectives 16
Community Service Officers 6
Management Analyst 1
Records Technician 1
Total Full time equivalent personnel assigned 29.8

ANALYSIS:

Each year, the Sheriff’s Office prepares a budget outlining the anticipated cost for services. The three major categories of expenses include:

1) Personnel Costs . Salaries and benefits associated with staff providing investigative services, patrol, traffic enforcement, and direct and administrative services; 2) Direct Operating Expenses . Costs associated with operational activit ies such as vehicle and equipment expenses, training, software, and general supplies; and 3) Support Services . Costs associated with technical services, records and evidence management, fiscal services, and personnel and human resources.

The retirement rates reflected in the current Agreement with the Sheriff’s Office are calculated using the San Mateo County's employer contribution rate. This rate is comprised of a normal cost component and amortization of the County’s Unfunded Actuarial Accrued Liability (“ UAAL”) component. The UAAL is the difference between the actuarial accrued liability for current and future retirees and the value of assets accumulated to finance the County’s pension obligations.

In brief, UAAL is the shortfall between pension promises and the value of assets.

Although the San Carlos Police Department was disbanded, CalPERS retains Pension Trust responsibilities and the administration of accrued liabilities for the City’s safety members up to the time the Agreement took effect. For this reason, the City is also required to continue funding its existing CalPERS UAAL and side fund. Since the original Agreement with San Mateo County required the City to compensate the Sheriff’s Office for the fully-loaded retirement costs, the City was in effect making double UAAL payments. City staff worked with San Mateo County representatives and requested relief from the UAAL component of the County’s retirement rates, resulting in a credit that is applied to the Agreement on an annual basis. For FY 202 2-23, this amount is estimated to be $2,196,797.

The Agreement also reflects the following:

 Funding in the amount of $100,000 for additional resources to help fund traffic enforcement and address traffic complaints; and
 Funding in the amount of $ 250,000 for the Downtown Services Unit , or Laurel Street Policing Program; and
 Services in the amount of $50,000 for additional DUI enforcement.

The increase in the Agreement of $1,030,068, or 10.2%, from last year is based on the following factors:

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4 1. Compensation Changes. The most significant portion of the increase is for personnel costs. The increase in the budget is attributed to increases associated with health and retirement benefits, experience and specialty pay, POST pay, workers compensation, overtime, and cost of living adjustments. The Deputy Sheriff’s Association and Organization of Sheriff’s Sergeants bargaining units did not receive an annual cost of living adjustment in FY 2021 -22. Negotiations are continuing , but this contract includes assumptions related to anticipated cost of living adjustments.

2. Operating Costs . Operating costs reflect modest increases for various supplies, equipment, and training. There is an increase in equipment maintenance due to the increasing reliance on specialized equipment and associated reporting and investigative software used in the field. Support services represent technical, records and evidence management, fiscal services , and human resources support provided by the Sheriff’s Office.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution approving Amendment No. 4 (Exhibit B -1) to the Law Enforcement Services Agreement with the San Mateo County Sheriff's Office, including the Fiscal Year 2022-23 Payment of $11,086,640 and the approval of the use of prior year savings in the amount of $228,540 for police services.

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall,
Administrative Services Director

Approved for submission by:

_________________________
Jeff Maltbie, City Manager

ATTACHMENT(S):

1. Resolution

2. San Carlos Law Enforce Svcs Amend

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RESOLUTION NO. 2022- _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS APPROVING AMENDMENT 4 (EXHIBIT B-1) TO THE LAW ENFORCEMENT SERVICES AGREEMENT WITH THE SAN MATEO COUNTY SHERIFF’S OFFICE, INCLUDING THE FISCAL YEAR 2022-23 PAYMENT OF $11,086,640 AND THE APPROVAL OF THE USE OF PRIOR YEAR SAVINGS IN THE AMOUNT OF $228,540 FOR POLICE SERVICES.

WHEREAS, the City of San Carlos provides police services to citizens and properties within its jurisdiction; and

WHEREAS, on June 22, 2020 the City Council of the City of San Carlos approved an Agreement with the San Mateo County Sheriff’s Office to provide law enforcement services within the city of San Carlos through June 30, 2025; and

WHEREAS, the attached Law Enforcement Services Agreement (“Agreement”) includes all of the same provisions as the previous five-year agreement, including those provisions related to Retirement and Unfunded Actuarial Accrued Liabilities and credit for those payments made to CalPERS; and

WHEREAS, the San Mateo County Sheriff’s Office will adjust the rates set forth in Exhibit B and Exhibit B-1 to the Agreement on an annual basis; and

WHEREAS, the Agreement contemplates that future fiscal year fees for services will be determined in accordance with the revised calculated rate schedule effective July 1 of each year of the Agreement; and

WHEREAS, the Adopted Fiscal Year 2022 -23 Budget for these services total s $10,858,100, and

WHEREAS, under Section 3.1.2 of the Agreement, the City has accumulated prior year savings in the amount of $228,441 as of December 31, 2022 that can be used to offset the total amount due.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Carlos hereby approves Amendment 4 to the Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office , including the Fiscal Year 20 22-23 payment of $ 11,086,640 and the approval of the use of prior year savings in the amount of $228,540 for Police Services.

* * * * *

I, City Clerk Crystal Mui, hereby certify the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 23rd day of May, 2022, by the following vote:

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Attachment: Resolution (Sheriff's Contract FY 2022-23 Amount)

AYES, COUNCILMEMBERS: _____________________________________ NOES, COUNCILMEMBERS: _______________________________________________ ABSENT, COUNCILMEMBERS:

CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos

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Attachment: Resolution (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 4 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s Office

AMENDMENT NO. 4

TO THE AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN THE

COUNTY OF SAN MATEO AND CITY OF SAN CARLOS

THIS AMENDMENT FOUR, entered into on the entered into on the 12th day of May, 2022, by and between the CITY OF SAN CARLOS, a general law city in the County of San Mateo, State of California, hereinafter referred to as "City" and the COUNTY OF SAN MATEO, a political subdivision of the State of California, hereinafter referred to as "County.”

W I T N E S S E T H

WHEREAS, on July 1, 2020, the City and County entered into an Agreement (Resolution No. 077595) for the performance of the agreed upon law enforcement services within its boundaries by the County through the Sheriff; and

WHEREAS, Resolution No. 077595 authorizes the Sheriff or Sheriff’s designee to accept or execute notices, documents, and amendments associated with this Agreement; and

WHEREAS, in November 2020, Amendment One was approved which provided additional foot patrols to support the Laurel Street Policing Program; included the purchase of an interview management system; and authorized use of the City’s trust fund to support a portion of the cost of law enforcement services in FY 2020-21; and

WHEREAS, in May 2021, Amendment Two was approved which incorporated the FY

2021-22 Selection of Personnel set forth in Exhibit A-1 and the FY 2021-22 Rates and

Payments set forth in Exhibit B; and

WHEREAS, in August 2022, Amendment Three was approved which increased Downtown Services Unit (DSU) appropriations by $100,000 for a total DSU program cost of $250,000 to fund an additional DSU Community Services Officer position and cover overtime costs associated with the DSU program; and

WHEREAS, the parties now wish to further amend the Agreement to incorporate the FY 2022- 23 Selection of Personnel set forth in Exhibit A-1 and the FY 2022-23 Rates and Payments set forth in Exhibit B.

NOW, THEREFORE, IT IS HEREBY AGREED as follows:

1. “Exhibit A-1, FY 2021-22 Assignment / Selection of Personnel (Revised July 2021)”, is hereby deleted in its entirety and replaced with “Exhibit A-1, FY 2022-23 Assignment / Selection of

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 4 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s Office

Personnel (Revised July 2022)” and is attached hereto and incorporated herein.

2. “ Exhibit B, FY 2021-22 Rates / Payments (Revised July 2021)” is hereby deleted in its entirety and replaced with “Exhibit B, FY 2022-23 Rates / Payments (Revised July 2022)” and is attached hereto and incorporated herein.

3. This Amendment Four is hereby incorporated and made a part of the original Agreement and subject to all provisions therein. All other terms of the original Agreement not in conflict with Amendment Four remain in effect and are incorporated by reference.

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 4 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s Office

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

COUNTY OF SAN MATEO
A Political Sub-division of the
State of California

BY: _________________________________________________
SHERIFF CARLOS G. BOLANOS

DATE: ___________________________

CITY OF SAN CARLOS

BY: _________________________________________________

JEFF MALTBIE, CITY MANAGER

DATE: ________________________

APPROVED AS TO FORM

_______________________________________
GREGORY J. RUBENS, CITY ATTORNEY

ATTEST:

BY: _______________________________________

CRYSTAL MUI, CITY CLERK

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 4 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s Office

EXHIBIT A – 1
FY 2022-23 ASSIGNMENT / SELECTION OF PERSONNEL
(Revised July 2022)
Agreement for Law Enforcement Services between the County of San Mateo and City of San Carlos

1. ASSIGNMENT OF PERSONNEL.

1.1 FY 2022-23 Assigned Personnel.

POSITION # of FTE
Captain 0.80
Sergeant - Day 2
Sergeant - Night 2
Sergeant - Administrative 1
Deputy - Day 6
Deputy - Night 4
Deputy - Motorcycle 2
Deputy - Canine 2
Deputy – Detective Services 2
Community Service Officers 6
Management Analyst 1
Records Technician 1
TOTAL # (FTE) 29.80

2. ASSIGNMENT OF SPECIFIC PERSONNEL.

2.1 In the event that the position of Captain assigned to the City (via this Agreement) needs to be filled, the Sheriff will provide City with three (3) candidates for consideration. City Manager shall select one of the three candidates.

2.2 The City Manager may request reassignment of personnel assigned to the City at any time. The Sheriff and City Manager shall meet and confer regarding the request within ten (10) days.

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 4 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s Office

EXHIBIT B
FY 2022-23 RATES / PAYMENTS
(Revised July 2022)
Agreement for Law Enforcement Services between the County of San Mateo and City of San Carlos

In consideration of the services described in Exhibit A and Exhibit A-1, City shall pay County based on the following fee schedule:

1. CHARGES FOR SERVICES.

1.1 City shall pay County for services described in this Agreement as calculated based on the formulas set forth in Section 6, Calculated Rates, attached hereto and incorporated by reference herein.

1.2 Section 6, Calculated Rates, shall be readjusted by the County annually effective July 1 of each year and attached hereto as an updated / revised Section 6.

2. INVOICING / BILLING.

2.1 On a quarterly basis in accordance with Section 3 below, Sheriff’s Office Fiscal Services Bureau shall submit an invoice to the City.

2.2 Payments and questions regarding invoicing shall be directed to the Sheriff’s Office Budget Analyst at (650) 599-1778 or be mailed to:

San Mateo County Sheriff’s Office
Fiscal Services Bureau
400 County Center
Redwood City, CA 94063

3. PAYMENTS.

3.1 Total charges for the period of July 1, 2022 through June 30, 2023 are $11,086,640 for police services. Invoices for police services will be issued according to the following schedule:

Invoice Issued Amount
July 1, 2022 $2,771,660
October 1, 2022 $2,771,660
January 1, 2023 $2,771,660
April 1, 2023 $2,771,660
NOTE: UAAL credits are not reflected in the above amounts.

3.2 Future Fiscal Year payments will be in accordance with the revised Calculated Rates effective July 1 of each year. Payments will be due the first day of each quarter for each subsequent year of this Agreement.

3.3 The July 1, 2022 invoice will be paid in part from the San Carlos City Trust Fund which is held by the Sheriff’s Office. A transfer of $228,540 will be made from the San Carlos City Trust Fund and reflected on the invoice issued on July 1, 2022.

4. BOOKING / MESSAGE SWITCH /FORENSIC LABORATORY FEES.

4.1 City shall not be responsible for paying Jail Access Fees, Booking Fees, Message Switch Fees or forensic laboratory fees to the County.

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 4 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s Office

5. JOINT POWERS AGREEMENTS.

5.1 City shall continue to be responsible for fees set forth in the Joint Powers Agreements pertaining to the Narcotics Task Force (NTF) and Office of Emergency Services (OES).

6. CALCULATED RATES

6.1 Rates for FY 2022-23 are outlined below.

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 4 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s Office

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 4 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s Office

6.2 Overtime Rates - the estimated overtime hourly rates for supplemental services described in Exhibit A (Section 1.1.3) are as follows:

FY2022-23 Estimated Supplemental Overtime for Special Events

Position Overtime Rate
Admin Sergeant (Day) $189.03
Sergeant (84 Plan Day) $188.85
Sergeant (84 Plan Night) $198.48
Detective Sergeant (Day) $198.21
Deputy Sheriff (84 Plan Day) $152.34
Deputy Sheriff (84 Plan Night) $160.32
K-9 Deputy Sheriff (84 Plan Day) $160.32
K-9 Deputy Sheriff (84 Plan Night) $168.31
Motorcycle Deputy $160.32
Detective Deputy Sheriff $160.29
Community Services Officer II $61.75
Community Services Officer II (Extra-Help) $59.95
Legal Office Specialist (Day) $66.81
Sheriff Criminal Records Supervisor $80.54
Criminal Records Tech II (Day) $58.20
Property Officer II $74.30

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount) AMENDMENT NO. 3 - AGREEMENT FOR LAW ENFORCEMENT SERVICES City of San Carlos / San Mateo County Sheriff’s
Office

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Attachment: San Carlos Law Enforce Svcs Amend (Sheriff's Contract FY 2022-23 Amount)

CITY COUNCIL

STAFF REPORT

MEETING DATE: June 13, 2022

ITEM TITLE: Adopt a Resolution Making Findings and Authorizing Remote Teleconference Meetings of the City Council and Commissions Pursuant to Assembly Bill 361.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing remote teleconference meetings of the City Council and Commissions pursuant to Assembly Bill (“AB”) 361.

FISCAL IMPLICATIONS:

There is no financial impact associated with adopting the proposed Resolution.

BACKGROUND:

On March 4, 2020, Governor Newsom of California proclaimed a state of emergency in response to the outbreak of the novel coronavirus (COVID -19). Then on March 17, 2020, the Governor issued Executive Order N -29-20, easing Brown A ct restrictions to allow local legislative bodies to hold their meetings via teleconference. This enabled the San Carlos City Council and staff to continue to safely conduct public meetings with public participation via teleconference, while still adhering to the County of San Mateo Health Officer’s "shelter -in- place" order.

On September 16, 2021, Governor Newsom approved AB 361 with the goal to “improve and enhance public access to local agency meetings during the COVID -19 pandemic and future applicable emergencies, by allowing broader access t hrough teleconferencing options.” The bill contains an urgency clause, which made the bill effective upon signing with a sunset date of January 1, 2024.

AB 361 allows local legislative bodies to continue to meet remotely if they met three criteria:

1. The local agency holds a meeting during a declared state of emergency proclaimed by the Governor;

2. State or local officials have imposed or recommended measures to promote social distancing; and

3. Legislative bodies have determined that meeting in person would present imminent risks to the health or safety of attendees.

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2 Pursuant to AB 361, the City Council adopted Resolution 2021 -093 on September 27, 2021, declaring the need for the City Council and Commissions to continue conducting remote meetings. Since October 25, 2021, the City Council has adopted a Resolution each month renewing its declaration to continue meeting remotely for the next 30 days.

As of May 9 2022, the City Council and Planning Commission meetings have been conducted in -person, with an option for the public to continue to participate remotely via Zoom . The Economic Development Advisory Commission and Youth Advisory Council have also transitioned to this meeting format. The Parks, Recreation and Culture Commission, Residential Design Review Committee, and Transportation and Circulation Commission have remained as remote meetings.

ANALYSIS:

While the City Council and Planning Commission have transitioned to in-person meetings, there are other City commissions that have opted to continue remote meetings. Adopting the proposed Resolution will provide those commissions with the option to continue remote meetings. In addition, members of the City Council and Planning Commission will have the flexibility to participate via teleconference in the event of a potential COVID -19 exposure or COVID-19 related concerns, such as an asymptomatic infection or concerns that an infection might occur at a remote location when a councilmember or commissioner has an active infection. If the Council approves the proposed Resolution, staff will present a staff report to Council every thirty days to verify that the circumstances continue to exist.

If the Council does not adopt a Resolution this evening to auth orize remote meetings pursuant to AB 36 1, beginning June 14, 2022, all commissions will need to transition back to in -person public meetings and any remote participation from members of the City Council and Commissions would need to be done according to th e Brown Act’s teleconferencing requirements, which include identifying the teleconference location on the agenda of the meeting and allowing members of the public to attend the meeting at the teleconference location.

ALTERNATIVES:

The alternatives available to the Council include:

1. Adopt a Resolution making findings and authorizing remote teleconference meetings of the City Council and Commissions pursuant to AB 361; or

2. Do not adopt the Resolution and proceed to transition all Commissions to in -person meetings beginning June 14, 2022; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui,
City Clerk

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3 Gregory Rubens, City Attorney

Approved for submission by:

_________________________
Jeff Maltbie, City Manager

ATTACHMENT(S):

1. Resolution

2. AB 361

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RESOLUTION NO. 2022-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

MAKING FINDINGS AND AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY COUNCIL AND COMMISSIONS PURSUANT TO ASSEMBLY BILL 361. ____________________________________________________________________________

WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State prepare for broader spread of the novel coronavirus (COVID-19); and

WHEREAS, on March 10, 2020, the City Manager, acting as Director of Emergency Services of the City of San Carlos, proclaimed the existence of a local emergency within the City; and

WHEREAS, on March 12, 2020, the City Council adopted Resolution 2020 -013 ratifying and extending the Director of Emergency Services’ proclamation of the existence of a local emergency caused by COVID-19; and

WHEREAS, on March 17, 2020, in response to the COVID -19 pandemic, Governor Newsom issued Executive Order N-29-20 suspending certain provisions of the Ralph M. Brown Act to allow local legislative bodies to conduct meetings telephonically or by other means; and

WHEREAS, as a result of Executive Order N -29-20, City staff set up Zoom meetings for all City Council and Commission meetings; and

WHEREAS, on September 16, 2021, the Governor signed Assembly Bill (“AB”) 361 into law as an urgency measure that went into effect immediately; and

WHEREAS, AB 361 authorizes local legislative bodies to continue to conduct meetings using teleconferencing without complying with the Ralph M. Brown Act’s standard teleconferencing requirements if certain conditions are met; and

WHEREAS, on September 27, 2021, pursuant to Assembly Bill 361, the City Council adopted Resolution 2021-093 making findings on the need for the City Council and Commissions to continue to teleconference in order to ensure the health and safety of the public; and

WHEREAS, each month since the passing of Resolution 2021-093, the City Council has reviewed the situation and adopted a Resolution renewing its declaration for the need for the City Council and Commissions to continue conducti ng meetings remotely due to health and safety concerns, pursuant to AB 361; and

WHEREAS, as of May 9, 2022, the City Council and Planning Commission meetings have been conducted in -person, with an option for the public to continue to participate remotely via Zoom. The Economic Development Advisory Commission and Youth Advisory Council have also transitioned to this meeting setup; and

WHEREAS, the Parks, Recreation and Culture Commission, Residential Design Review Committee, and Transportation and Circulation Commission have remained as remote meetings; and

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Attachment: Resolution (Assembly Bill 361)

WHEREAS, adopting a Resolution making findings and authorizing the option for the City Council and Commissions to continue conducting meetings remotely due to health and safety concerns, pursuant to AB 361, provides Commissions who aren’t ready to meet in person the option to continue remote meetings; and

WHEREAS, adopting a Resolution making findings and authorizing the option for the City Council and Commissions to continue conducting meetings remotely due to health and safety concerns, pursuant to AB 361 and provides members of the City Council and Commissions who have returned to in -person meetings with the flexibility to participate via teleconference in the event of potential COVID-19 exposure, future orders restricting attendance, a new variant causing the need to return to full remote meetings or other COVID-19 related concerns.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby makes the following findings, in compliance with AB 361, and in order to continue to teleconference under the modified Brown Act requirements:

a. The City Council has reconsidered the circumstances of the state of emergency; b. The Governor’s proclamation for a state of emergency issued on March 4, 2020 remains in effect;
c. Full return to in -person meetings would cause imminent risk to attendees who are vulnerable or where staff or councilmembers may have an asymptomatic, or where they are only able to attend remotely due to an infection, and it would be unsafe for the public to attend at their remote meeting location; and d. State and local officials continue to strongly recommend masks be worn by all individuals in indoor settings.

*****

I, Crystal Mui, City Clerk, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of June 2022, by the following vote:

AYES, COUNCILMEMBERS: ______________________________________________ NOES, COUNCILMEMBERS: ______________________________________________ ABSENT, COUNCILMEMBERS: ______________________________________________

________________________________
CITY CLERK of the City of San Carlos

APPROVED:

___________________________
MAYOR of the City of San Carlos

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Attachment: Resolution (Assembly Bill 361)
Assembly Bill No. 361
CHAPTER 165
An act to add and repeal Section 89305.6 of the Education Code, and to amend, repeal, and add Section 54953 of, and to add and repeal Section 11133 of, the Government Code, relating to open meetings, and declaring the urgency thereof, to take effect immediately.
[Approved by Governor September 16, 2021. Filed with
Secretary of State September 16, 2021.]
legislative counsel’s digest
AB 361, Robert Ri vas. Open meetings: state and local agencies:
teleconferences.
(1)  Existing la w, the Ralph M. Bro wn Act requires, with specified exceptions, that all meetings of a legislative body of a local agency, as those terms are defined, be open and public and that all persons be permitted to attend and participate. The act contains specified provisions regarding the timelines for posting an agenda and pro viding for the ability of the public to directly address the legislative body on any item of interest to the public.

The act generally requires all regular and special meetings of the legislative body be held within the boundaries of the territory o ver which the local agency exercises jurisdiction, subject to certain exceptions. The act allows for meetings to occur via teleconferencing subject to certain requirements, particularly that the legislative body notice each teleconference location of each member that will be participating in the public meeting, that each teleconference location be accessible to the public, that members of the public be allo wed to address the le gislative body at each teleconference location, that the le gislative body post an agenda at each teleconference location, and that at least a quorum of the legislative body participate from locations within the boundaries of the local agenc y’s jurisdiction. The act provides an exemption to the jurisdictional requirement for health authorities, as defined. The act authorizes the district attorney or any interested person, subject to certain pro visions, to commence an action by mandamus or injunction for the purpose of obtaining a judicial determination that specified actions taken by a legislative body are null and void.

Existing la w, the California Emer gency Services Act, authorizes the Governor, or the Director of Emer gency Services when the go vernor is inaccessible, to proclaim a state of emergency under specified circumstances.

Executive Order No. N-29-20 suspends the Ralph M. Bro wn Act’s requirements for teleconferencing during the COVID-19 pandemic provided that notice and accessibility requirements are met, the public members are allowed to observe and address the legislative body at the meeting, and that a legislative body of a local agency has a procedure for receiving and swiftly

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resolving requests for reasonable accommodation for indi viduals with disabilities, as specified.

This bill, until January 1, 2024, w ould authorize a local agenc y to use teleconferencing without complying with the teleconferencing requirements imposed by the Ralph M. Bro wn Act when a le gislative body of a local agency holds a meeting during a declared state of emer gency, as that term is defined, when state or local health officials have imposed or recommended measures to promote social distancing, during a proclaimed state of emergency held for the purpose of determining, by majority vote, whether meeting in person would present imminent risks to the health or safety of attendees, and during a proclaimed state of emergency when the legislative body has determined that meeting in person would present imminent risks to the health or safety of attendees, as provided.

This bill w ould require le gislative bodies that hold teleconferenced meetings under these abbreviated teleconferencing procedures to give notice of the meeting and post agendas, as described, to allo w members of the public to access the meeting and address the legislative body, to give notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call-in option or an internet-based service option, and to conduct the meeting in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the le gislative body. The bill would require the legislative body to take no further action on agenda items when there is a disruption which pre vents the public agenc y from broadcasting the meeting, or in the e vent of a disruption within the local agency’s control which prevents members of the public from offering public comments, until public access is restored. The bill would specify that actions taken during the disruption are subject to challenge proceedings, as specified.

This bill w ould prohibit the le gislative body from requiring public comments to be submitted in advance of the meeting and would specify that the legislative body must provide an opportunity for the public to address the legislative body and offer comment in real time. The bill would prohibit the le gislative body from closing the public comment period and the opportunity to register to provide public comment, until the public comment period has elapsed or until a reasonable amount of time has elapsed, as specified. When there is a continuing state of emergency, or when state or local officials have imposed or recommended measures to promote social distancing, the bill w ould require a le gislative body to mak e specified findings not later than 30 days after the first teleconferenced meeting pursuant to these pro visions, and to mak e those findings e very 30 days thereafter, in order to continue to meet under these abbre viated teleconferencing procedures.

Existing law prohibits a le gislative body from requiring, as a condition to attend a meeting, a person to re gister the person’s name, or to pro vide other information, or to fulfill an y condition precedent to the person’ s attendance.
92 — 2 — Ch. 165

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This bill would exclude from that prohibition, a registration requirement imposed by a third-party internet website or other online platform not under the control of the legislative body.
(2)  Existing law, the Bagle y-Keene Open Meeting Act, requires, with specified exceptions, that all meetings of a state body be open and public and all persons be permitted to attend any meeting of a state body. The act requires at least one member of the state body to be ph ysically present at the location specified in the notice of the meeting.

The Governor’s Executive Order No. N-29-20 suspends the requirements of the Bagle y-Keene Open Meeting Act for teleconferencing during the COVID-19 pandemic, provided that notice and accessibility requirements are met, the public members are allo wed to observe and address the state body at the meeting, and that a state body has a procedure for receiving and swiftly resolving requests for reasonable accommodation for indi viduals with disabilities, as specified.

This bill, until January 31, 2022, w ould authorize, subject to specified notice and accessibility requirements, a state body to hold public meetings through teleconferencing and to mak e public meetings accessible telephonically, or otherwise electronically , to all members of the public seeking to observ e and to address the state body . With respect to a state body holding a public meeting pursuant to these provisions, the bill would suspend certain requirements of e xisting law, including the requirements that each teleconference location be accessible to the public and that members of the public be able to address the state body at each teleconference location. Under the bill, a state body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically would satisfy any requirement that the state body allow members of the public to attend the meeting and of fer public comment. The bill w ould require that each state body that holds a meeting through teleconferencing provide notice of the meeting, and post the agenda, as pro vided. The bill w ould urge state bodies utilizing these teleconferencing procedures in the bill to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to existing law, as provided.
(3)  Existing law establishes the various campuses of the California State University under the administration of the Trustees of the California State University, and authorizes the establishment of student body organizations in connection with the operations of California State University campuses.

The Gloria Romero Open Meetings Act of 2000 generally requires a legislative body, as defined, of a student body or ganization to conduct its business in a meeting that is open and public. The act authorizes the legislative body to use teleconferencing, as defined, for the benefit of the public and the legislative body in connection with any meeting or proceeding authorized by law.

This bill, until January 31, 2022, w ould authorize, subject to specified notice and accessibility requirements, a le gislative body, as defined for purposes of the act, to hold public meetings through teleconferencing and 92 Ch. 165 — 3 —

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to mak e public meetings accessible telephonically , or otherwise electronically, to all members of the public seeking to observe and to address the legislative body. With respect to a le gislative body holding a public meeting pursuant to these pro visions, the bill w ould suspend certain requirements of e xisting la w, including the requirements that each teleconference location be accessible to the public and that members of the public be able to address the legislative body at each teleconference location.

Under the bill, a le gislative body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically w ould satisfy an y requirement that the legislative body allow members of the public to attend the meeting and of fer public comment. The bill w ould require that each legislative body that holds a meeting through teleconferencing pro vide notice of the meeting, and post the agenda, as provided. The bill would urge legislative bodies utilizing these teleconferencing procedures in the bill to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to existing law, as provided.
(4)  This bill would declare the Le gislature’s intent, consistent with the Governor’s Executive Order No. N-29-20, to impro ve and enhance public access to state and local agency meetings during the COVID-19 pandemic and future emergencies by allowing broader access through teleconferencing options.
(5)  This bill would incorporate additional changes to Section 54953 of the Government Code proposed by AB 339 to be operative only if this bill and AB 339 are enacted and this bill is enacted last.
(6)  The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts la ws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect. (7)  Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect. (8)  This bill w ould declare that it is to tak e effect immediately as an urgency statute.

The people of the State of California do enact as follows:

SECTION 1. Section 89305.6 is added to the Education Code, to read:
89305.6. (a)  Notwithstanding any other pro vision of this article, and subject to the notice and accessibility requirements in subdivisions (d) and (e), a legislative body may hold public meetings through teleconferencing 92 — 4 — Ch. 165

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and mak e public meetings accessible telephonically , or otherwise electronically, to all members of the public seeking to observe and to address the legislative body.
(b)  (1)  For a le gislative body holding a public meeting through teleconferencing pursuant to this section, all requirements in this article requiring the physical presence of members, the clerk or other personnel of the le gislative body, or the public, as a condition of participation in or quorum for a public meeting, are hereby suspended.
(2)  For a le gislative body holding a public meeting through teleconferencing pursuant to this section, all of the following requirements in this article are suspended:
(A)  Each teleconference location from which a member will be participating in a public meeting or proceeding be identified in the notice and agenda of the public meeting or proceeding.
(B)  Each teleconference location be accessible to the public. (C)  Members of the public may address the le gislative body at each teleconference conference location.
(D)  Post agendas at all teleconference locations.
(E)  At least one member of the legislative body be physically present at the location specified in the notice of the meeting.
(c)  A legislative body that holds a meeting through teleconferencing and allows members of the public to observ e and address the meeting telephonically or otherwise electronically , consistent with the notice and accessibility requirements in subdi visions (d) and (e), shall ha ve satisfied any requirement that the le gislative body allow members of the public to attend the meeting and offer public comment. A legislative body need not make available any physical location from which members of the public may observe the meeting and offer public comment.
(d)  If a legislative body holds a meeting through teleconferencing pursuant to this section and allows members of the public to observe and address the meeting telephonically or otherwise electronically, the legislative body shall also do both of the following:
(1)  Implement a procedure for receiving and swiftly resolving requests for reasonable modification or accommodation from indi viduals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), and resolving an y doubt whatsoever in favor of accessibility.
(2)  Advertise that procedure each time notice is gi ven of the means by which members of the public may observ e the meeting and of fer public comment, pursuant to paragraph (2) of subdivision (e).
(e)  Except to the extent this section provides otherwise, each legislative body that holds a meeting through teleconferencing pursuant to this section shall do both of the following:
(1)  Give advance notice of the time of, and post the agenda for , each public meeting according to the timeframes otherwise prescribed by this article, and using the means otherwise prescribed by this article, as applicable.
92 Ch. 165 — 5 —

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(2)  In each instance in which notice of the time of the meeting is otherwise given or the agenda for the meeting is otherwise posted, also give notice of the means by which members of the public may observ e the meeting and offer public comment. As to any instance in which there is a change in the means of public observ ation and comment, or an y instance prior to the effective date of this section in which the time of the meeting has been noticed or the agenda for the meeting has been posted without also including notice of the means of public observation and comment, a legislative body may satisfy this requirement by advertising the means of public observation and comment using the most rapid means of communication a vailable at the time. Advertising the means of public observation and comment using the most rapid means of communication available at the time shall include, but need not be limited to, posting such means on the le gislative body’s internet website.
(f)  All legislative bodies utilizing the teleconferencing procedures in this section are urged to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to the otherwise applicable provisions of this article, in order to maximize transparenc y and pro vide the public access to legislative body meetings.
(g)  This section shall remain in ef fect only until January 31, 2022, and as of that date is repealed.

SEC. 2. Section 11133 is added to the Government Code, to read:
11133. (a)  Notwithstanding an y other pro vision of this article, and subject to the notice and accessibility requirements in subdivisions (d) and (e), a state body may hold public meetings through teleconferencing and make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observ e and to address the state body.
(b)  (1)  For a state body holding a public meeting through teleconferencing pursuant to this section, all requirements in this article requiring the physical presence of members, the clerk or other personnel of the state body, or the public, as a condition of participation in or quorum for a public meeting, are hereby suspended.
(2)  For a state body holding a public meeting through teleconferencing pursuant to this section, all of the following requirements in this article are suspended:
(A)  Each teleconference location from which a member will be participating in a public meeting or proceeding be identified in the notice and agenda of the public meeting or proceeding.
(B)  Each teleconference location be accessible to the public. (C)  Members of the public may address the state body at each teleconference conference location.
(D)  Post agendas at all teleconference locations.
(E)  At least one member of the state body be ph ysically present at the location specified in the notice of the meeting.
(c)  A state body that holds a meeting through teleconferencing and allows members of the public to observ e and address the meeting telephonically 92 — 6 — Ch. 165

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or otherwise electronically , consistent with the notice and accessibility requirements in subdivisions (d) and (e), shall have satisfied any requirement that the state body allow members of the public to attend the meeting and offer public comment. A state body need not mak e available any physical location from which members of the public may observ e the meeting and offer public comment.
(d)  If a state body holds a meeting through teleconferencing pursuant to this section and allo ws members of the public to observ e and address the meeting telephonically or otherwise electronically, the state body shall also do both of the following:
(1)  Implement a procedure for receiving and swiftly resolving requests for reasonable modification or accommodation from indi viduals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), and resolving an y doubt whatsoever in favor of accessibility.
(2)  Advertise that procedure each time notice is gi ven of the means by which members of the public may observ e the meeting and of fer public comment, pursuant to paragraph (2) of subdivision (e).
(e)  Except to the extent this section provides otherwise, each state body that holds a meeting through teleconferencing pursuant to this section shall do both of the following:
(1)  Give advance notice of the time of, and post the agenda for , each public meeting according to the timeframes otherwise prescribed by this article, and using the means otherwise prescribed by this article, as applicable.
(2)  In each instance in which notice of the time of the meeting is otherwise given or the agenda for the meeting is otherwise posted, also give notice of the means by which members of the public may observ e the meeting and offer public comment. As to any instance in which there is a change in the means of public observ ation and comment, or an y instance prior to the effective date of this section in which the time of the meeting has been noticed or the agenda for the meeting has been posted without also including notice of the means of public observation and comment, a state body may satisfy this requirement by advertising the means of public observation and comment using the most rapid means of communication a vailable at the time. Advertising the means of public observation and comment using the most rapid means of communication available at the time shall include, but need not be limited to, posting such means on the state body’ s internet website.
(f)  All state bodies utilizing the teleconferencing procedures in this section are urged to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to the otherwise applicable provisions of this article, in order to maximize transparency and provide the public access to state body meetings.
(g)  This section shall remain in ef fect only until January 31, 2022, and as of that date is repealed.

SEC. 3. Section 54953 of the Government Code is amended to read:
92 Ch. 165 — 7 —

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54953. (a)  All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agenc y, except as otherwise pro vided in this chapter.
(b)  (1)  Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agenc y in connection with an y meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all otherwise applicable requirements of this chapter and all otherwise applicable pro visions of la w relating to a specific type of meeting or proceeding.
(2)  Teleconferencing, as authorized by this section, may be used for all purposes in connection with an y meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3)  If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agenc y. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the le gislative body shall participate from locations within the boundaries of the territory o ver which the local agenc y e xercises jurisdiction, e xcept as pro vided in subdivisions (d) and (e). The agenda shall pro vide an opportunity for members of the public to address the le gislative body directly pursuant to Section 54954.3 at each teleconference location.
(4)  For the purposes of this section, “teleconference” means a meeting of a le gislative body, the members of which are in dif ferent locations, connected by electronic means, through either audio or video, or both.

Nothing in this section shall prohibit a local agenc y from pro viding the public with additional teleconference locations.
(c)  (1)  No legislative body shall tak e action by secret ballot, whether preliminary or final.
(2)  The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3)  Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdi vision (d) of Section 3511.1, during the open meeting in which the final action is to be tak en. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Di vision 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
92 — 8 — Ch. 165

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(d)  (1)  Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that w ould establish a quorum are present within the boundaries of the territory o ver which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if an y, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2)  Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdi vision shall be subject to all other requirements of this section.
(3)  For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and an y advisory committee to a county-sponsored health plan licensed pursuant to Chapter

2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e)  (1)  A local agency may use teleconferencing without complying with the requirements of paragraph (3) of subdivision (b) if the legislative body complies with the requirements of paragraph (2) of this subdivision in any of the following circumstances:
(A)  The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials ha ve imposed or recommended measures to promote social distancing.
(B)  The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority v ote, whether as a result of the emer gency, meeting in person w ould present imminent risks to the health or safety of attendees.
(C)  The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B), that, as a result of the emer gency, meeting in person w ould present imminent risks to the health or safety of attendees.
(2)  A legislative body that holds a meeting pursuant to this subdi vision shall do all of the following:
(A)  The legislative body shall give notice of the meeting and post agendas as otherwise required by this chapter.
(B)  The legislative body shall allow members of the public to access the meeting and the agenda shall pro vide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3. 92 Ch. 165 — 9 —

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In each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the legislative body shall also gi ve notice of the means by which members of the public may access the meeting and of fer public comment. The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option. This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment.
(C)  The le gislative body shall conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body of a local agency. (D)  In the event of a disruption which pre vents the public agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the e vent of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the body shall tak e no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. Actions taken on agenda items during a disruption which prevents the public agency from broadcasting the meeting may be challenged pursuant to Section 54960.1.
(E)  The le gislative body shall not require public comments to be submitted in advance of the meeting and must pro vide an opportunity for the public to address the le gislative body and offer comment in real time.

This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment. (F)  Notwithstanding Section 54953.3, an individual desiring to provide public comment through the use of an internet website, or other online platform, not under the control of the local le gislative body, that requires registration to log in to a teleconference may be required to re gister as required by the third-party internet website or online platform to participate. (G)  (i)  A legislative body that provides a timed public comment period for each agenda item shall not close the public comment period for the agenda item, or the opportunity to re gister, pursuant to subparagraph (F), to pro vide public comment until that timed public comment period has elapsed.
(ii)  A legislative body that does not pro vide a timed public comment period, but takes public comment separately on each agenda item, shall allow a reasonable amount of time per agenda item to allow public members the opportunity to provide public comment, including time for members of the public to re gister pursuant to subparagraph (F), or otherwise be recognized for the purpose of providing public comment. (iii)  A legislative body that pro vides a timed general public comment period that does not correspond to a specific agenda item shall not close the public comment period or the opportunity to re gister, pursuant to subparagraph (F), until the timed general public comment period has elapsed. 92 — 10 — Ch. 165

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(3)  If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the le gislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
(A)  The legislative body has reconsidered the circumstances of the state of emergency.
(B)  Any of the following circumstances exist:
(i)  The state of emergency continues to directly impact the ability of the members to meet safely in person.
(ii)  State or local officials continue to impose or recommend measures to promote social distancing.
(4)  For the purposes of this subdi vision, “state of emergency” means a state of emergency proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 (commencing with Section 8550) of Chapter 7 of Division 1 of Title 2).
(f)  This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 3.1. Section 54953 of the Government Code is amended to read:
54953. (a)  All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the le gislative body of a local agenc y in person, e xcept as otherwise provided in this chapter. Local agencies shall conduct meetings subject to this chapter consistent with applicable state and federal ci vil rights la ws, including, b ut not limited to, an y applicable language access and other nondiscrimination obligations.
(b)  (1)  Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agenc y in connection with an y meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all otherwise applicable requirements of this chapter and all otherwise applicable pro visions of la w relating to a specific type of meeting or proceeding.
(2)  Teleconferencing, as authorized by this section, may be used for all purposes in connection with an y meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3)  If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agenc y. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the le gislative body 92 Ch. 165 — 11 —

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shall participate from locations within the boundaries of the territory o ver which the local agenc y e xercises jurisdiction, e xcept as pro vided in subdivisions (d) and (e). The agenda shall pro vide an opportunity for members of the public to address the le gislative body directly pursuant to Section 54954.3 at each teleconference location.
(4)  For the purposes of this section, “teleconference” means a meeting of a le gislative body, the members of which are in dif ferent locations, connected by electronic means, through either audio or video, or both.

Nothing in this section shall prohibit a local agenc y from pro viding the public with additional teleconference locations.
(c)  (1)  No legislative body shall tak e action by secret ballot, whether preliminary or final.
(2)  The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3)  Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdi vision (d) of Section 3511.1, during the open meeting in which the final action is to be tak en. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Di vision 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d)  (1)  Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that w ould establish a quorum are present within the boundaries of the territory o ver which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if an y, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2)  Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdi vision shall be subject to all other requirements of this section.
(3)  For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and an y advisory committee to a county-sponsored health plan licensed pursuant to Chapter 92 — 12 — Ch. 165

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2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e)  (1)  A local agency may use teleconferencing without complying with the requirements of paragraph (3) of subdivision (b) if the legislative body complies with the requirements of paragraph (2) of this subdivision in any of the following circumstances:
(A)  The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials ha ve imposed or recommended measures to promote social distancing.
(B)  The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority v ote, whether as a result of the emer gency, meeting in person w ould present imminent risks to the health or safety of attendees.
(C)  The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B), that, as a result of the emer gency, meeting in person w ould present imminent risks to the health or safety of attendees.
(2)  A legislative body that holds a meeting pursuant to this subdi vision shall do all of the following:
(A)  The legislative body shall give notice of the meeting and post agendas as otherwise required by this chapter.
(B)  The legislative body shall allow members of the public to access the meeting and the agenda shall pro vide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3.

In each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the legislative body shall also gi ve notice of the means by which members of the public may access the meeting and of fer public comment. The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option. This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment.
(C)  The le gislative body shall conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body of a local agency. (D)  In the event of a disruption which pre vents the public agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the e vent of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the body shall tak e no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. Actions taken on agenda items during a disruption which prevents the public agency from broadcasting the meeting may be challenged pursuant to Section 54960.1.
(E)  The le gislative body shall not require public comments to be submitted in advance of the meeting and must pro vide an opportunity for 92 Ch. 165 — 13 —

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the public to address the le gislative body and offer comment in real time.

This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment. (F)  Notwithstanding Section 54953.3, an individual desiring to provide public comment through the use of an internet website, or other online platform, not under the control of the local le gislative body, that requires registration to log in to a teleconference may be required to re gister as required by the third-party internet website or online platform to participate. (G)  (i)  A legislative body that provides a timed public comment period for each agenda item shall not close the public comment period for the agenda item, or the opportunity to re gister, pursuant to subparagraph (F), to pro vide public comment until that timed public comment period has elapsed.
(ii)  A legislative body that does not pro vide a timed public comment period, but takes public comment separately on each agenda item, shall allow a reasonable amount of time per agenda item to allow public members the opportunity to provide public comment, including time for members of the public to re gister pursuant to subparagraph (F), or otherwise be recognized for the purpose of providing public comment. (iii)  A legislative body that pro vides a timed general public comment period that does not correspond to a specific agenda item shall not close the public comment period or the opportunity to re gister, pursuant to subparagraph (F), until the timed general public comment period has elapsed. (3)  If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the le gislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
(A)  The legislative body has reconsidered the circumstances of the state of emergency.
(B)  Any of the following circumstances exist:
(i)  The state of emergency continues to directly impact the ability of the members to meet safely in person.
(ii)  State or local officials continue to impose or recommend measures to promote social distancing.
(4)  For the purposes of this subdi vision, “state of emergency” means a state of emergency proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 (commencing with Section 8550) of Chapter 7 of Division 1 of Title 2).
(f)  This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 4. Section 54953 is added to the Government Code, to read:
54953. (a)  All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting 92 — 14 — Ch. 165

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of the legislative body of a local agenc y, except as otherwise pro vided in this chapter.
(b)  (1)  Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agenc y in connection with an y meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all requirements of this chapter and all otherwise applicable pro visions of la w relating to a specific type of meeting or proceeding.
(2)  Teleconferencing, as authorized by this section, may be used for all purposes in connection with an y meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3)  If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agenc y. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the le gislative body shall participate from locations within the boundaries of the territory o ver which the local agenc y e xercises jurisdiction, e xcept as pro vided in subdivision (d). The agenda shall pro vide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4)  For the purposes of this section, “teleconference” means a meeting of a le gislative body, the members of which are in dif ferent locations, connected by electronic means, through either audio or video, or both.

Nothing in this section shall prohibit a local agenc y from pro viding the public with additional teleconference locations
(c)  (1)  No legislative body shall tak e action by secret ballot, whether preliminary or final.
(2)  The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3)  Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdi vision (d) of Section 3511.1, during the open meeting in which the final action is to be tak en. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Di vision 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d)  (1)  Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, 92 Ch. 165 — 15 —

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members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that w ould establish a quorum are present within the boundaries of the territory o ver which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if an y, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2)  Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdi vision shall be subject to all other requirements of this section.
(3)  For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and an y advisory committee to a county-sponsored health plan licensed pursuant to Chapter

2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e)  This section shall become operative January 1, 2024.

SEC. 4.1. Section 54953 is added to the Government Code, to read:
54953. (a)  All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the le gislative body of a local agenc y, in person e xcept as otherwise provided in this chapter. Local agencies shall conduct meetings subject to this chapter consistent with applicable state and federal ci vil rights la ws, including, b ut not limited to, an y applicable language access and other nondiscrimination obligations.
(b)  (1)  Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agenc y in connection with an y meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all requirements of this chapter and all otherwise applicable pro visions of la w relating to a specific type of meeting or proceeding.
(2)  Teleconferencing, as authorized by this section, may be used for all purposes in connection with an y meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3)  If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the 92 — 16 — Ch. 165

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legislative body of a local agenc y. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the le gislative body shall participate from locations within the boundaries of the territory o ver which the local agenc y e xercises jurisdiction, e xcept as pro vided in subdivision (d). The agenda shall pro vide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4)  For the purposes of this section, “teleconference” means a meeting of a le gislative body, the members of which are in dif ferent locations, connected by electronic means, through either audio or video, or both.

Nothing in this section shall prohibit a local agenc y from pro viding the public with additional teleconference locations.
(c)  (1)  No legislative body shall tak e action by secret ballot, whether preliminary or final.
(2)  The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3)  Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdi vision (d) of Section 3511.1, during the open meeting in which the final action is to be tak en. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Di vision 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d)  (1)  Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that w ould establish a quorum are present within the boundaries of the territory o ver which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if an y, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2)  Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdi vision shall be subject to all other requirements of this section.
(3)  For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint 92 Ch. 165 — 17 —

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powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and an y advisory committee to a county-sponsored health plan licensed pursuant to Chapter

2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e)  This section shall become operative January 1, 2024.

SEC. 5. Sections 3.1 and 4.1 of this bill incorporate amendments to Section 54953 of the Go vernment Code proposed by both this bill and Assembly Bill 339. Those sections of this bill shall only become operative if (1) both bills are enacted and become ef fective on or before January 1, 2022, but this bill becomes operati ve first, (2) each bill amends Section 54953 of the Government Code, and (3) this bill is enacted after Assembly Bill 339, in which case Section 54953 of the Government Code, as amended by Sections 3 and 4 of this bill, shall remain operative only until the operative date of Assembly Bill 339, at which time Sections 3.1 and 4.1 of this bill shall become operative.

SEC. 6. It is the intent of the Legislature in enacting this act to improve and enhance public access to state and local agenc y meetings during the COVID-19 pandemic and future applicable emergencies, by allowing broader access through teleconferencing options consistent with the Go vernor’s Executive Order No. N-29-20 dated March 17, 2020, permitting expanded use of teleconferencing during the COVID-19 pandemic.

SEC. 7. The Legislature finds and declares that Sections 3 and 4 of this act, which amend, repeal, and add Section 54953 of the Government Code, further, within the meaning of paragraph (7) of subdi vision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

This act is necessary to ensure minimum standards for public participation and notice requirements allo wing for greater public participation in teleconference meetings during applicable emergencies.

SEC. 8. (a)  The Legislature finds and declares that during the COVID-19 public health emergency, certain requirements of the Bagle y-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Di vision 3 of Title 2 of the Go vernment Code) were suspended by Executive Order N-29-20. Audio and video teleconference were widely used to conduct public meetings in lieu of physical location meetings, and public meetings conducted by teleconference during the COVID-19 public health emergency have been productive, have increased public participation by all members of the public re gardless of their location in the state and ability to travel to physical meeting locations, have protected the health and safety of civil servants and the public, and have reduced travel costs incurred by members of state bodies and reduced work hours spent traveling to and from meetings.
92 — 18 — Ch. 165

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(b)  The Legislature finds and declares that Section 1 of this act, which adds and repeals Section 89305.6 of the Education Code, Section 2 of this act, which adds and repeals Section 11133 of the Go vernment Code, and Sections 3 and 4 of this act, which amend, repeal, and add Section 54953 of the Government Code, all increase and potentially limit the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
(1)  By removing the requirement that public meetings be conducted at a primary ph ysical location with a quorum of members present, this act protects the health and safety of civil servants and the public and does not preference the experience of members of the public who might be able to attend a meeting in a ph ysical location o ver members of the public who cannot travel or attend that meeting in a physical location. (2)  By removing the requirement for agendas to be placed at the location of each public official participating in a public meeting remotely, including from the member’s private home or hotel room, this act protects the personal, private information of public officials and their f amilies while preserving the public’ s right to access information concerning the conduct of the people’s business.

SEC. 9. This act is an ur gency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect.

The facts constituting the necessity are:

In order to ensure that state and local agencies can continue holding public meetings while pro viding essential services lik e w ater, po wer, and fire protection to their constituents during public health, wildfire, or other states of emergencies, it is necessary that this act take effect immediately.

O
92 Ch. 165 — 19 —

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CITY COUNCIL

STAFF REPORT

MEETING DATE: June 13, 2022

ITEM TITLE: Reappoint Cecile Lee to the Parks, Recreation and Culture Commission for a Three-Year Term Ending June 30, 2025.

RECOMMENDATION:

Staff provides no recommendation, as commission and b oard appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with receiving this report.

BACKGROUND AND ANALYSIS:

At its June 4, 2019 meeting, the City Council appointed Cecile Lee to the Parks, Recreation, and Culture (“PR&C”) Commission for a full term beginning July 1, 2019 through June 30, 2022.

On May 25, 2022, the City Council also appointed Cecile Lee to the Downtown Advisory Committee to serve as an alternate.

Commissioner Lee has expressed interest in continuing to serve for another term on the PR&C Commission. Attached is her attendance report covering the start of her service to date.

According to San Carlos Municipal Code §2.24.060, commission members may serve two three-year terms, or no more than a total of six consecutive years. Therefore at this time , Commissioner Lee is eligible to serve for one more three-year term.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Reappoint Cecile Lee to the PR&C Commission for a term ending June 30, 2025; or

2. Do not reappoint Cecile Lee to the PR&C Commission and direct staff to recruit to fill the seat; or

3. Provide staff with alternative direction.

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2 Respectfully submitted by:

Crystal Mui,
City Clerk

Approved for submission by:

_________________________
Jeff Maltbie, City Manager

ATTACHMENT(S):

1. Attendance Record - Cecile Lee

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2021-2022

TOTAL UNEXCUSED

ABSENCES
Quarter 1 8/11/2021
P 0
Quarter 2 10/6/2021 12/8/2021
E P 0
Quarter 3 2/2/2022
P 0
Quarter 4 4/6/2022 6/1/2022
P E 0
2020-2021
Quarter 1 8/12/2020
P 0
Quarter 2 10/7/2020 12/2/2020
P P 0
Quarter 3 2/3/2021
P 0
Quarter 4 4/7/2021 6/2/2021
P P 0
2019-2020
Quarter 1 8/7/2019
P 0
Quarter 2 10/2/2019 12/4/2019
P P 0
Quarter 3 2/5/2020
P 0
Quarter 4 4/1/2020 6/3/2020
C C 0
(quarters on the fiscal year)
P = Present
U = Unexcused Absence
E = Excused
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg cancelled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum City of San Carlos
Attendance Report for Commissioner Cecile Lee
July 1, 2019 through June 30, 2022

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Attachment: Attendance Record - Cecile Lee (Reappoint Lee PR&C)

CITY COUNCIL

STAFF REPORT

MEETING DATE: June 13, 2022

ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute an Addendum to Agreement for Professional Services with Granicus LLC for Website and Intranet Subscription Services in an Amount Not to Exceed $37,981.71.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution ratifying the Addendum to Agreement for Professional Services (“Addendum”) by and between the City of San Carlos and Granicus LLC to extend internet a nd intranet subscription services for one year, with an option to extend the Agreement for a second year, in an amount not to exceed $37,981.71.

FISCAL IMPLICATIONS:

There is no additional appropriation needed to extend the contract . The costs associated with this extension have already been incorporated into the adopted budget.

The cost associated with ratifying this Addendum extending services for one year is $18,709.83.

The cost of extending the Agreement for an additional year after the first year i s $19,271.88.

Combined, the total cost of extending the Agreement would not exceed $37,981.71.

Staff will return to Council at a later time to request funding for a capital project to replace and update both the external and internal websites.

BACKGROUND:

This agreement is coming before the City Council for approval based on the City of San Carlos Municipal Code requirements. Under Chapter 3.12 Purchasing of City Supplies and Services, any contracts (including amendments) less than $75,000 can be appro ved by the City Manager under his signing authority but those greater than $75,000 must be approved by City Council.

The total cost of this amendment (including prior year costs) have raised the total contract cost above the City Manager’s signing authority, requiring approval by City Council.

The City of San Carlos (“City”) entered into an Agreement for Products and/or Services (“Agreement”) with Vision Technology Solutions, LLC (“Vision”) dated June 9, 2017, in an amount not to exceed $185,772 (Attachment 3). The Agreement with Vision was executed after a request for proposals was issued for website and intranet design and hosting services in March 2017. Vision was selected from among 18 proposals after a thorough review and interview process. Vision w as acquired by Granicus , LLC (“Granicus”) in February 2018. Total

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2 payments to both Vision and Granicus for internet and intranet services total $167,595.90, or $18,176.10 less than the not to exceed value of the Agreement.

ANALYSIS:

Since acquiring Visio n, both the City and Granicus have met the terms and obligations of the Agreement. As is typical with websites, the City’s website has become dated since 2017. The website could benefit from a requirements analysis, gap analysis, and refresh to ensure it meets the latest usability, accessibility, and content management standards.

The City Manager’s Office would have preferred to issue a request for proposals for a website refresh and a new agreement. However, the department was focused on operating under pandemic protocols. In addition, the department was short staffed due to the departure of its Senior Management Analyst and in the midst of recruiting a new Assistant City Manager.

With department staffing now at its previous levels, the City Manager’s Office has the capacity to begin the process for a request for proposals for a website refresh. Staff estimates that this process will take twelve months. With this assumption in mind, staff mistakenly assumed it could extend the Agreement with Granicus b ecause the total contract value would not exceed $75,000, which is the contract value threshold at which the City Council’s approval is required per Chapter 3.12 of the San Carlos M unicipal Code. However, even th ough the cost to extend the Agreement is les s than $75,000, the City Council’s authorization is required because the contract term would expire.

To avoid a lapse in services after the contract terminated on June 9, staff executed an Addendum with Granicus to extend the Agreement one year. As such, staff is now seeking ratification of the Addendum (Attachment 2).

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution ratifying the Addendum by and between the City of San Carlos and Granicus; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Nil Blackburn,
Assistant City Manager

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3 Approved for submission by:

_________________________
Jeff Maltbie, City Manager

ATTACHMENT(S):

1. Resolution

2. Proposed Addendum

3. Agreement with Vision Technology Solutions 6.09.17

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RESOLUTION NO. 2022 - _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

AUTHORIZING THE CITY MANAGER TO EXECUTE AN ADDENDUM TO AGREEMENT FOR

PROFESSIONAL SERVICES WITH GRANICUS LLC FOR WEBSITE AND INTRANET SUBSCRIPTION SERVICES IN AN AMOUNT NOT TO EXCEED $37,981.71. ____________________________________________________________________________

WHEREAS, on June 13, 2016, the City Council approved a Capital Improvement Program budget to redesign the City’s website and int ranet, which include s ongoing hosting and maintenance costs to be requested as part of future budget process; and

WHEREAS, a request for p roposals for the redesign of the website and intranet and hosting services was issued in March 2017 . The City received 18 proposals; with the top four vendors invited for an interview; which was then narrowed down to two finalists for more thorough vetting before a presentation to the Council Website Subcommittee; and

WHEREAS, following the comprehensive selection process, staff and the Council Website Subcommittee selected Vision as the most qualified vendor to meet the City’s website and intranet needs; and

WHEREAS, the City and Vision entered into a five year Agreement for Products and/o r Services (“Agreement”) dated June 9, 2022, in an amount not to exceed $185,772; and

WHEREAS, Vision was acquired by Granicus, LLC (“Granicus”) in February 2018; and

WHEREAS, the City’s payments to both Vision and Granicus throughout the five year contract term has totaled $167,595.90, or $18,176.10 less than the not to exceed value of the Agreement; and

WHEREAS, the City seeks to execute an Addendum with Granicus to extend the Agreement for one year to allow time to issue a request for proposals for a website refresh, with an option to extend the Agreement for an additional one year after the initial one year extension is necessary, in an amount not to exceed $37,981.71.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Carlos hereby approves and authorizes the City Manager to execute an agreement with Granicus for website and intranet subscription services in an amount not to exceed $37,981.71.

* * * * *
I, Crystal Mui, City Clerk hereby certify that this Resolution was passed and adopted by the City Council of the City of San Carlos at a regular meeting thereof held on the 13th day of June 2022 by the following vote:

AYES, COUNCILMEMBERS: _______________________________________________

NOES, COUNCILMEMBERS: _______________________________________________

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Attachment: Resolution (Granicus Website Extension)

ABSENT, COUNCILMEMBERS: _______________________________________________

__________________________________
CITY CLERK of the City of San Carlos
APPROVED:

___________________________
MAYOR of the City of San Carlos

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Attachment: Resolution (Granicus Website Extension)
Addendum to Agreement For Professional Services 1 Revised: June 2020

ADDENDUM TO AGREEMENT FOR PROFESSIONAL SERVICES

THIS ADDENDUM TO THE AGREEMENT FOR PROFESSIONAL SERVICES is made to the Agreement for Professional Services dated June 9, 2017 by and between the CITY OF SAN CARLOS, hereinafter referred to as “CITY”, and Vision Technology Solutions, L.L.C. (later acquired by Granicus, LLC.), hereinafter referred to as “CONSULTANT” and shall accept the attached amended Exhibit A. In all other respects the terms and conditions in the contract dated June 9, 2017 shall remain in full force and effect.

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

CITY OF SAN CARLOS:

Dated:

Jeff Maltbie, City Manager
ATTEST:

Dated:

Crystal Mui, City Clerk

APPROVED AS TO FORM:

Dated:

Greg Rubens, City Attorney

CONSULTANT:

I acknowledge that I have full authority to execute this addendum on behalf of the Consultant, and have read, understand, and agree to comply with the provisions of this Addendum, including the Insurance and indemnity requirements set forth herein.

Dated:

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Attachment: Proposed Addendum (Granicus Website Extension) Addendum to Agreement For Professional Services 2 Revised: June 2020

Exhibit A – Scope of Work and Cost

This addendum extends the term of the Agreement dated June 9, 2017 twelve (12) months, with an option to extend another twelve (12) months after June 9, 2023.

The fee for govAccess for Internet (self-hosted) and govAccess – Main, Hosting and Licensing Fee Core, plus recurring customizations is:
- $18,709.83 for the prorated period June 19, 2022 through June 30, 2023. - $19,271.88 for the period July 1, 2023 through June 30, 2024, if the option to extend another twelve (12) months is exercised.

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Attachment: Proposed Addendum (Granicus Website Extension)

AGREEMENT FOR PRODUCTS AND/OR SERVICES
This Agreement Agreement is made and entered into as of the day ofjU fl , 2017 - by and between the City of San Carlos hereinafter called "CITY" and Vision Technology Solutions, LLC dba Vision hereinafter called "VENDOR".

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

A. That CITY desires to engage VENDOR to provide a product and/or services to the CITY;
B. That VENDOR is qualified to provide the product and/or services to the CITY and;
THEREFORE, the CITY has elected to engage VENDOR upon the terms and conditions as hereinafter set forth.

1. A. Services. The services to be performed by VENDOR under this Agreement are described in Exhibit A, which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Perfomnance of the services specified in said Exhibit is hereby made an obligation of VENDOR under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

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

B. Product. The product to be supplied by VENDOR under this Agreement is set forth in Exhibit A which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Timely delivery of the product specified in said Exhibit A is hereby made an obligation of VENDOR under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

2. Term; Termination. (a) The term of this Agreement shall commence upon the date hereinabove written and shall expire upon the date enumerated in Exhibit A, delivery of the product or completion of performance of services hereunder by VENDOR, whichever date shall first occur. Nothing herein contained shall be deemed a limitation upon the right of CITY to terminate Agreement for Products andfor Services 1 Revised 08/09)2015

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) this Agreement for cause, or otherwise to exercise such rights or pursue such remedies as may accrue to CITY hereunder.

Compensation: Expenses; Payment. CITY shall compensate VENDOR for all products supplied or services performed by VENDOR hereunder as shown in Exhibit A attached hereto and by this reference incorporated herein.

Notwithstanding the foregoing, the combined total of compensation and reimbursement of costs payable hereunder shall not exceed the sum $185,772.00 unless additional amounts have been approved in advance of supplying the product, performing the services or incurring the costs and expenses by CITY's City Manager (for contracts less than $75,000 or authorized by City Council action for contracts $75,000 or more by motion duly made and carried).

Compensation and reimbursement of costs and expenses hereunder shall be payable upon VENDOR meeting contract milestones as defined in Exhibit A. Billing shall include an itemized statement, briefly describing by task and labor category or cost/expense items billed.

4. Additional Services. In the event CITY desires the delivery of additional products or performance of additional services not otherwise included within Exhibit A, such products or services shall be authorized in advance by CITY's City Manager (for contracts less than $75,000 or authorized by City Council action for contracts $75,000 or more by motion duly made and carried). Such amendment to this Agreement shall include a description of the product to be delivered or services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefor, the time of performance thereof, and such other matters as the parties deem appropriate. Any additional services causing the total contract price to exceed $75,000, shall require approval by the City Council. Except to the extent modified by written amendment, all other terms and conditions of this Agreement shall be deemed incorporated in each such amendment.

5. Records. VENDOR shall keep and maintain accurate records of products delivered or of all time expended in performing services and costs and expenses incurred relating thereto. Said records shall be available to CITY for review and copying during regular business hours at VENDOR's place of business or as otherwise agreed upon by the parties.

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

Agreement for Products and/or Services Revised 08/09/2016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) 7 Reliance on Specialized Professional Skill of VENDOR. VENDOR represents that it has the necessary professional skills to perform the services required and the CITY shall rely on such specialized skills of the VENDOR to do and perform the work. In performing services hereunder VENDOR shall adhere to the standards generally prevailing for the performance of services similar to those to be performed by VENDOR hereunder.

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

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

10. Schedule. VENDOR shall adhere to the schedule set forth in Exhibit A; provided, that CITY shall grant reasonable extensions of time for the delivery of products or performance of services occasioned by governmental reviews of VENDOR's work product or other unavoidable delays; provided, further, that such unavoidable delay shall not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, VENDOR's officers or employees.

VENDOR acknowledges the importance to CITY of timely delivery of products or services and agrees to put forth its best professional efforts to perform in a manner consistent with that schedule.

11. Indemnity. VENDOR hereby agrees to defend, indemnify, and save harmless CITY, its Council, boards, commissions, officers, attorneys, employees and agents, from and against any and all claims, suits, actions liability, loss, damage, expense, cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, which may be brought against, or suffered or sustained by, CITY, its Council, boards, commissions, officers, attorneys, employees or agents caused by, or alleged to have been caused by, the negligence, intentional tortuous act or omission, or willful misconduct of VENDOR, its officers, employees or agents in the performance of any services or work pursuant to this Agreement.

The duty of VENDOR to indemnify and save harmless, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing herein contained shall be construed to require VENDOR to indemnify CITY and, its Council, Agreement for Products ancLfor Services 3 Revised 08109/2016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) boards, commissions, officers, attorneys, employees and agents against any responsibility or liability in contravention of Section 2782 of the California Civil Code.

12. Insurance. VENDOR shall acquire and maintain Workers' Compensation, employers liability, commercial general liability, owned and non-owned and hired automobile liability, and professional liability insurance covering risks arising from VENDOR's services to be performed hereunder in form subject to the approval of the City Attorney and/or CITY's Risk Manager.

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

Insurance Category Minimum Limits
Workers' Compensation statutory minimum
Employer's Liability $1,000,000 per accident for bodily injury or disease
Commercial General Liability $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury,
personal injury and property damage
Automobile Liability
1Professional Liability
$1,000,000 per accident for bodily injury
and property damage (coverage
required to the extent applicable to
VENDOR's vehicle usage in performing
services hereunder)
$1,000,000 per claim and $2,000,000
aggregate
Other Insurance Provisions
Concurrently with the execution of this Agreement, VENDOR shall furnish CITY with certificates and copies of information or declaration pages of the insurance required hereunder and, with respect to evidence of commercial general liability and automobile liability insurance coverage, original endorsements:
(a) Precluding cancellation or reduction in per occurrence limits before the expiration of thirty (30) days (10 days for nonpayment) 1 Note: Professional liability insurance coverage is not required ri the contractorivendoriconsultant is not providing a service regulated by the state. (Examples of service providers regulated by the state are insurance agents, professional engineers, doctors, certified public accountants, lawyers, etc.) Please check and initial the following if professional liability is NOT required for this agreement. Li Recommended [Project Manager] I: Approved [Risk Manager] Agreement for Products and/or SenAces
Revised 013/092016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) after City shall have received written notification of cancellation in coverage or reduction in per occurrence limits by first class mail; WI
Naming the City of San Carlos, its Council, officers, boards, commissions, employees, Attorneys and agents, as additional insureds; and
(c) Providing that VENDOR's insurance coverage shall be primary insurance with respect to CITY, its Council, officers, boards, commissions, employees, Attorneys and agents, and any insurance or self-insurance maintained by CITY for itself, its Council, officers, boards, commissions, employees, or agents shall be in excess of VENDOR's insurance and not contributory with it.

Claims Made Policies
If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the VENDOR must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work.

Verification of Coverage
VENDOR shall furnish the CITY with original certificates and amendatory endorsements effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the CITY before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the VENDOR's obligation to provide them. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Waiver of Subrogation
VENDOR hereby grants to CITY a waiver of any right to subrogation which any insurer of said VENDOR may acquire against the CITY by virtue of the payment of any loss under such insurance. This provision applies regardless of whether or not the CITY has requested or received a waiver of subrogation endorsement from the insurer.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

Agreement for Products and/or Services Revised 06/09/2016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) Special Risks or Circumstances
CITY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Coverage
It is a requirement under this agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be made available to the Additional Insured and shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any insurance policy, whichever is greater.

VENDOR shall maintain insurance as required by this contract to the fullest amount allowed by law and shall maintain insurance for a minimum of five years following completion of the project In the event contractor fails to obtain or maintain completed operations coverage as required by this agreement, the city at its sole discretion may purchase the coverage required and the cost shall be paid by VENDOR.

Primary and Non-Contributory Coverage
The Additional Insured coverage under the VENDOR's policy shall be "primary and non-contributory" as will not seek contribution from the CITY insurance or self-insurance and shall be at least as broad as CG 20 01 04

12. Excess Insurance
The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of CITY before the CITY insurance or self-insurance shall be called upon to protect it as a named insured.

13. Subcontractors. VENDOR agrees to include with all subcontractors in their subcontracts the same requirements and provisions of this agreement including the indemnity and Insurance requirements to the extent they apply to the scope of the Subcontractors' work.

Subcontractors hired by VENDOR agree to be bound to VENDOR and CITY in the same manner and to the same extent as VENDOR is bound to CITY under the Contract documents. Subcontract shall agree to include these same provisions in any agreement with a sub-subcontractor.

VENDOR shall require all subcontractors to provide a valid certificate of insurance and the required endorsements included in the agreement prior Agreement for Products and/or Services 6 Revised 06/09/2016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) to commencement of any work and will provide proof of compliance to the CITY.

Subcontractor shall agree to be bound to VENDOR and CITY in the same manner and to the same extent as VENDOR is bound to CITY under the Contract Documents. Subcontractor shall further agree to include the same requirements and provisions of this agreement, including the indemnity and Insurance requirements, with a Sub-subcontractor to the extent they apply to the scope of the Sub-subcontractors' work. A copy of the CITY Contract Document Indemnity and Insurance provisions shall be furnished to the subcontractor upon request.

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

15. Non-Discrimination. The VENDOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The VENDOR will take affirmative action to insure that applicants are employed and the employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following:
employment, advancement, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The VENDOR shall at all times be in compliance with the requirements of the Federal Americans With Disabilities Act (Public Law 101-336) which prohibits discrimination on the basis of disability by public entities. The VENDOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.

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

CITY: City of San Carlos
600 Elm Street
San Carlos, CA 94070
Attention: City Manager's Office
VENDOR: Vision
222 N. Sepulveda Blvd., Suite 1500
El Segundo, CA 90245
Agreement for Products and/or Services 7 Revised OS/0912016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) Attention: Associate Counsel, Corn mercial
Contracts

17. Business Registration. VENDOR agrees to comply with Chapter 5.04 of the Municipal Code and pay all fees required to be paid.

18. Amendments. This Agreement may be amended or modified only by written agreement signed by both parties.

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

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

21. Mediation. Should any dispute arise out of this Agreement, the parties shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither party shall be permitted to file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The costs of the mediator, if any, shall be paid equally by the parties. If a mediated settlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and each party shall bear its own legal costs. If a party refuses or fails to participate in mediation in good faith prior to filing a lawsuit, then that party shall be barred from recovery of attorneys fees and costs of suit.

22. Conflict of Interest. VENDOR may serve other clients, but none who are active within the City of San Carlos or who conduct business that would place VENDOR in a "conflict of interest" as that term is defined in State law.

23. Entire Agreement. Each party acknowledges that this agreement, the exhibits hereto, and the documents incorporated by reference herein constitute the complete agreement and exclusive statement of the terms and conditions between the parties, which supercedes and merges all prior proposals, understandings and all other agreements, verbal and written, between the parties relating to the subject matter of this agreement. This agreement may not be modified or altered except by written instrument duly executed by both parties.

Agreement far Products and/or Services Revised 08/0W2016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) CITY OF CARLOS
Jeff al • le, City Manager
Dated:

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

ATTEST:

Dated: i• /2./ 7
Dated:

VENDOR
I have read, understand, and agree to comply with the provisions of this Agreement, including the Insurance and indemnity requirements set forth herein.

Dated:

David M. Nachman, Chief Executive Officer
Agreement for Products andfor Services Revised 08109/2016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension)

EXHIBIT A
Vision Master Service Agreement
Agreement for Products and/or Services 10 Revised 08/0912016

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) master services agreement rvi:7A ?;` 00279-20! 7
For Cllyof5anCarlas, C4
This Master Services Agreement ("Agreement") is made and entered into effective as of the date of the last signature below (the "Effective Date") by and between Vision Technology Solutions, LLC dba VISION ("Contractor"), and the City of San Carlos, which is a signatory hereto ("Client"). Client and Contractor are sometimes individually referred to as a "Party" and collectively as the "Parties."
J. Services. This Agreement (which includes and incorporates the Addendum(s) attached hereto and Contractor's acceptable use policy ("AUP") posted at www.visioninternet.com/about/legal) sets forth the entire terms and conditions by which Contractor will deliver and Client will receive any and all of the services provided by Contractor, including one or more of the following: website development, visionLiveTM subscription services, and/or other extra work and services (collectively, the "Services"). This Agreement is intended to cover any and all Services ordered by Client and provided by Contractor. Contractor will provide Services to Client as requested by Client and as set forth in the applicable Addendum(s) in exchange for payment of related fees specified in such Addendum(s), and compliance with the terms and conditions of this Agreement, and compliance with Contractor's AUP as such policy may change from time to time. Contractor shall notify Client within fifteen (15) days after a chanae in the AUP, and Client shall have Un to thirty (30) days thereafter to terminate this Agreement without cause as provided under Section 26.1 of this Agreement. The AUP in effect at the time of agreement is attached in Addendum A.

1.1. Website Development Services. Contractor agrees to provide website development services, as more particularly described in Addendum B and C, in exchange for payment of fees and compliance with the terms and conditions of this Agreement.

1.1.1. Client understands and agrees that Contractor will develop weosite frontend to be compatible with Internet Explorer 11, Microsoft Edge, and the latest released versions of Chrome, Firefox, and Safari at the time of Completion. Website backend will be compatible with Internet Explorer 11, Microsoft Edge and the latest released version of Chrome and Firefox at the time of Completion. Website may not be compatible with previous or future versions.

Website backend will be optimized for 1024 x 768 pixels resolution or above. Client understands and agrees that the website will be developed with Hypertext Markup Language CHTML"), CSS, JavaScript, and Microsoft ASP.NET ("MS-ASP") interfaced with a database created in Microsoft SQL Server ("MS-SQL"). Client understands and agrees that the website is developed to run on a Microsoft Windows Server 2012 ("MS-Server"), or later. Responsive Website Design with visionMobile DesignerTM mobile browsers will be compatible with the latest released versions at the time of Completion of iOS Safari, Android Chrome, and Windows Phone 7 Internet Explorer, but may not be compatible with previous or future versions. Client is responsible for the costs of all software licensing. All of the web browsers listed in this section, and any others added by Contractor at its discretion are herein referred to collectively as the "Supported Web Browsers".

1.12 Client understands and agrees that the website frontend design and content migrated by Contractor will be implemented to be compliant with WCAG 2.0 standards as provided under Addendum 11 and C.

Notwithstanding the foregoina. Contractor is not responsible for _content or desian modified by a party other than Contractor, for content or design modified in accordance with Client's specifications or instructions, or for content migrated or design revisions made after delivery of the development website. Client further understands and agrees that the website backend and third-party tools may not comply with Section 508 or WCAG 2.0.

1.2. visionLiveTM Contractor agrees to provide VCMS Licensing Services, Support Services, and Hosting Services (collectively "Subscription Services") to the Client in exchange for payment of fees and compliance with the terms and conditions of this Agreement. As used throughout this Agreement, "VCMS" shall mean Vision Content Management SystennTM, also known as the Vision Internet Content Management System, VCrviT, VCMS and the Vision Content Management Tool.

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) VISION
121 Subscription. Contractor will provide Client a subscription to access and use the VCMS.

VCMS Licensing Services include:
(a) Functional enhancements to VCMScomponents.
(b) New VCMS Interactive Components that may be released from time to time by Contractor.
(c) Bug fixes to the VCMS code.
(d) Updates to provide compatibility to future versions of Supported Web Browsers within three months of their release. Compatibility with previous versions of Supported Web Browsers is notguaranteed.

VCMS Licensing Services do not include:
(a) Optional Interactive Components.
(b) Modules, Programs, or SoftwareApplications.
(c) Conversion to new platforms.
(d) Modification of third-party products.
(e) Compatibility with Client's third-party products.
(0 Website design services.
(g) New Products. Contractor may from time to time release new software with capabilities substantially different from or greater than the VCMS and which therefore do not constitute System Updates or New VCMS Interactive Components. (h) All other services not expressly provided for in this Agreement and its applicable Addendum(s).
122. Support Services. Support Services is defined as technical support, account management, and education and training for the VCMS; provided, however, Client does not (1)(a) modify the VCMS or (1)(b) use the VCMS in combination with any third-party system not authorized by Contractor, and (2) maintains a visionLiveTM Subscription in accordance with this Agreement. Contractor will provide Support Services to a designated Client account manager, system administrator or webmaster. Technical support is generally available by email and telephone from 6:00 AM to 6:00 PM Pacific Time, Monday through Friday excluding holidays ("Business Flours"), with emergency support available 24 hours a day, 7 days a week. An emergency is defined as Client's website being down for more than ten (10) minutes. Support Services also include:
(a) Shared Account Manager
(b) Account Managementl*
o Account reviews (Health Checks) 2
o Site analytics report 3
o Graphics site audit4
o 10 Site improvement credits
(c) Education and Training
o Training and best practices webinars
o Access to On-Demand Training Library
o On-going new feature training (via remote meeting service) o Monthly office hours (via remote meeting service)
Ten site improvement credits will be available beginning the second year of the Agreement and every year thereafter within the Initial Term. Each site improvement credit will be valued at the blended rate of $105. Any unused hours in a given year may be carried over to the following year within the Initial Term. Site improvement credits expire at the end of the Initial Term and will not carry over beyond the Initial Term. 123. Hosting Services. Contractor will provide shared website hosting on a Microsoft Windows Server- and shared database hosting on a Microsoft SQL Server for one (1) unique VCMS website. The shared server hosting 2 7.i.3
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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) 1 Health Checks, Site Analytics Report and Graphics Site Audit will be performed annually beginning the second year of the Agreement and every year thereafter.
2 Included with each Advanced Subsite as applicable.
3 Included with each Advanced Subsite as applicable.
4 Included with each Advanced Subsite as applicable.
3 7.i.3
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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) VI SIC) service includes:
(a) SOC-certified datacenter
(b) Full hardware redundancy
(c) Redundant generator backup
(d) Daily data backups
(e) Intrusion protection
(f) 24/7 monitoring
(g) 99.9% uptime
(h) DDoS mitigation service
(i) Website content storage 5
(j) Standard disaster recovery service with 90 minute fallover

1.2.4 Unless Client has retained other Services from Contractor under the applicable Addendum, Client is solely and exclusively responsible for all services not expressly provided for in this Agreement. Any changes, alterations or modification requested by the Client to its website and/or intranet may be subject to a fee to be quoted by a Contractor representative at the time of the request. Client may, at any time, upgrade from its current edition to either a Standard or Plus Edition, as applicable. Client may not, during the Initial Term (defined below) or any renewal term, downgrade from its current edition to either a Standard or Basic Edition, as applicable. Client acknowledges that the Subscription Services may be modified or improved because of the dynamic nature of technology. Contractor may, from time to time, make minor modifications to the Subscription Services, as a whole or any part thereof. Such minor modifications may be implemented at any time and without notice to Client. Continued use of the Subscription Services following any modification shall constitute binding acceptance of the modification.

1.3. visionLiver" Subscription Services for Intranet. Contractor agrees to provide Subscription Services to the Client for its Intranet in exchange for payment of fees and compliance with the terms and conditions of this Agreement.

1.3.1. Subscription. Contractor will provide Client a subscription to access and use the VCMS.

VCMS Licensing Services include:
(a) Functional enhancements to VCMS components.
(b) New VCMS Interactive Components that may be released from time to time by Contractor. (c) Bug fixes to the VCMS code.
(d) Updates to provide compatibility to future versions of Supported Web Browsers within three months of their release. Compatibility with previous versions of Supported Web Browsers is not guaranteed.

To receive the VCMS Licensing Services, the VCMS code must be unmodified. Client must provide Contractor continual server access to receive Upgrade Services and at no time may Client modify the code. Modification of code may result in files being overwritten.

VCMS Licensing Services do not include:
(a) Optional Interactive Components.
(b) Modules, Programs, or Software Applications.
(c) Conversion to new platforms.
(d) Modification of third-party products.
(e) Compatibility with Client's third-party products.
(f) Website design services.
(g) New Products. Contractor may from time to time release new software with capabilities substantially different from or greater than the VCMS and which therefore do not constitute System Updates or New VCMS Interactive Components.
(h) All other services not expressly provided for in this Agreement and its applicable Addendum(s).

1.3.2. Support Services. Contractor will provide Support Services to a designated Client account manager, system administrator or webmaster. Technical support is generally available by email and telephone during Business Hours, with emergency support available 24 hours a day, 7 days a week. An emergency is defined as Client's website being down for more than ten (10) minutes. 4 7.i.3
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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) V ,

1.3.3. Site Imorovement Credits. Ten site improvement credits will be available beginning the second year of the Agreement and every year thereafter within the Initial Term. Any unused hours in a given year may be carried over to the following year within the Initial Term. Site improvement credits expire at the end of the Initial Term and will not carry over beyond the Initial Term.

1.3.4. no liostina Services. Contractor is not providing Hosting Services. Client to provide Hosting Services on its own infrastructure with the following minimum requirements:

Web Server
(a) Dual processors with quad cores at minimum 2.8 GHz CPU (b) Minimum 6 GB RAM
(c) Minimum 40 GB Hard Drive
(d) Windows Server 2012 with the latest service pack
Database Server
(a) Dual processors with quad cores at minimum 2.8 GHz CPU (b) Minimum 8 GB RAM
(c) Minimum 80 GB Hard Drive
(d) Windows Server 2012 with the latest service pack
(e) Microsoft SQL Server 2012 with the latest service pack The Servers can either be separate or reside in the same machine; provided, however, that if the Servers are on the same machine, the minimum requirements are dual processors with Quad cores and at least 2,8 GHz CPU and 8GB RAM. For better performance, we recommend dual processors with Quad cores and 3.0 GHz CPU and above. Except as expressly set forth in this Agreement, it is Client's responsibility to host and maintain the website and make back-ups of all hosted files.

Contractor will assist Client with setting up the website on Client server. A flat rate of $475 will be charged for assistance in setting up the website according to Contractor's Standard Hosting Procedure. Any additional work will be billed at the technical support hourly rate.

2. Subsequent Extra Work/Other Services. Additional services not initially covered in this Agreement (including the Addendum referenced above) and extra hours will be presented to Client for approval prior to commencement of work ("Extra Work"). Extra Work will be set forth in an amendment to this Agreement signed by the Parties and designated as Addendum D-1, D-2 etc., as applicable, and such Addendum shall become part of this Agreement when executed by both parties. Such addendum will be billed at Contractor's then prevailing hourly rates, which are currently as follows: Content Migration, $85/hr; Graphic Production, $95/hr; Quality Assurance, Testing, Debugging, Technical Support, Webmaster Services, HIML Programming, $105/hr; Consulting, Project Management, Database Design, Dynamic Programming, $135/hr; Graphic Design, Training, $125/hr; Straight flatbed scanning will be billed at $10 per scan. Touch up work to images will be billed at the Graphic Design hourly rate. Client shall be responsible for any or all additional fees including, without limitation: photography, stock images, illustration, fonts, scanning, software, applications, online promotion, marketing, copy writing, redesign, change orders, mailings, and fees to any third party vendors if applicable. Calls outside of Business Hours for support services unrelated to the website being down for more than ten (10) minutes will be subject to a minimum fee of $135.

Ownership; Limited Licensing of Intellectual Property.

3.1. Desions. Upon payment in full of the website development fees provided under Addendum B, Contractor grants a non-exclusive, non-transferrable, and perpetual license for Client to reproduce, modify or create derivative works for its own use, public display, and use any and all of Contractor's copyrights in the homepage layout wireframe, sitemap, draft homepage design concept(s) interior page layouts (collectively, the "Contractor Designs") embodied in Client's website, which are prepared or caused to be prepared by Contractor under this Agreement. The Contractor Designs provided under this Agreement is licensed and not sold. Client understands and agrees that the Contractor Designs as a whole is an original work of authorship by Contractor and that Contractor shall retain all rights, title, and interests therein. Contractor retains its right to use any web pages developed for the Client in any of its own promotional materials as examples of its work. 32 Vision Content Management SystemTM. Contractor also grants Client a limited, non-exclusive, and 5 7.i.3
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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) Nt
5 For the main website, visionLive Standard subscribers have up to 50GB of storage, and vision Live Plus subscribers have up to 250GB of storage. Each Advanced subsite has up to 10GB of storage, regardless of visionLive edition. Each Basic subsite has up to 5GB of storage, regardless of visionLive edition. 6 7.i.3
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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) non-transferrable subscription to access and use two instances of the VCMS and Dynamic and Interactive Components of the VCMS to the extent necessary for the Client's use and operation of its website and intranet; provided, Client does not (1)(a) modify the VCMS or (1)(b) use the VCMS in cnmhination with any third-party system not authorized by Contractor, and (2) maintains a visionLiveTM Subscription in accordance with this Agreement. The VCMS provided under this Agreement is not for sale, and Client understands and agrees that Contractor shall retain all rights, title, and interests in the VCMS, Dynamic and Interactive Components, and any other Contractor intellectual property not provided for in this Section.

3.3. Rights Reoardino Content. Each Party warrants that it holds all rights and/or licenses necessary to display all of the images, data, information or other items supplied by such Party and being displayed on the Client's web pages during the effective period of this Agreement. Contractor agrees that Client will retain ownership of au i information and content (including Client provided logos and images) owned exclusively by Client and provided by Client for use on its website. Client shall supply all necessary information to Contractor in a timely manner in digital format including without limitation copy, text, audio files, video files, pdf files, photographs, artwork, and preexisting graphics. Contractor is not responsible for content migrated by Client or any third party. Client expressly authorizes Contractor to display and/or modify any Client supplied images, data, information and other items in connection with the services provided herein. 4 Limited Warranty. Contractor warrants that website development and/or custom programming deliverables will be conveyed to Client upon transfer of the website to the production server with a public Internet Protocol address ("Completion"). All VCMS programming code developed by Contractor is warranted to be free of any material errors or bugs that prevent the code from performing as originally intended ("Warranted Problem"); provided, however, Client does not (1)(a) modify the VCMS or (1)(b) use the VCMS in combination with any third-party system not authorized by Contractor, and (2) maintains a visionLiveTM Subscription in accordance with this Agreement. In the event of breach of the limited warranty in this Section, Client's sole remedy and Contractor's entire liability shall be limited to Contractor's correction of the Warranted Problem. Except as expressly set forth above, CONTRACTOR MAKES NO GUARANTEE OR WARRANTY OF ANY KIND, WHETHER

EXPRESS OR IMPLIED, INCLUDING OF MERCHANTABILITY OR FITNESS OF THE SERVICES FOR A PARTICULAR PURPOSE

WHATSOEVER, AND USE OF THE SERVICES OR ANY INFORMATION THAT MAY BE OBTAINED THERE FROM IS AT CLIENT'S OWN RISK AS THE SERVICES ARE PROVIDED TO CLIENT ON AN "AS IS" BASIS. In no event, at any time, shall the aggregate liability of Contractor under this Agreement or otherwise exceed the amount of fees paid by Client to Contractor in the most recent twelve months, and Contractor shall not be responsible for any lost profits or other damages, including direct, indirect, incidental, special, consequential or any other damages, however caused. Contractor does not warrant any connection to, transmission over, nor results of use of, any network connection or facilities provided, nor any third-party applications and software obtained by, for, or on behalf of Client. Contractor assumes no responsibility for any damages suffered by the Client, including, but not limited to, server down time, loss of data, loss of business, misdeliveries, delays, non-deliveries, access speed, or service interruptions of any kind. Client acknowledges that the information available through the interconnecting networks may not be accurate. Contractor has no ability or authority over the material. In addition, Contractor has no liability for the quality, accuracy, or validity of the data/information gathered from the Internet Use of information gathered through the use of Contractor services is at the risk of the Client.

Invoices. Contractor will submit itemized invoices to Client for the payments required by the applicable Service(s), and all invoices will be due and payable within 30 days. Payments not received by Contractor 30 days after the date of the invoice will be considered delinquent. Returned checks are subject to a charge of $25.00. Client agrees to be liable for all costs of collection of any delinquent invoices including, but not limited to, collection agency fees, reasonable attorneys' fees, and court costs.

5.1. Web_s_ite Development
511. Price. Client agrees to pay and Contractor agrees to perform Website Development services in an amount not to exceed $125,000.
512. Payment. Contractor will submit itemized invoices to Client for the payments required by this Section, and all invoices will be due and payable within 30 days:
(a) An initial payment equal to 30% ($29,911.50) of the total cost (excluding Project Contigency);
(b) Remaining payment shall be based on project milestones and deliverables as 7 7.i.3
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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) follows:

Project Visioning • Content Strategy Documents 20% ($19,941) • 1 day of onsite training
• Final homepage wireframes approved
Graphic Design • Final homepage design approved 20% ($19,941) • Final interior page design approved
Development and Training • Prototype website on development service 20% ($19,941) • Training 3 days onsite and 1 day remote
Go-live and Maintenance • Schedule go-live date 10% ($9,970.50) • DNS Update

5.2. Non-Contractor Hosting. If Contractor is not providing hosting services then, at Client's request, Contractor will assist Client with setting up the website on Client's server. A flat rate of $475 for up to four hours of Technical Support will be charged for assistance in setting up the website according to Contractor's Standard Hosting Procedure. Any additional work will be billed at the Technical Support hourly rate.

Subscription Fees. All Subscription Services provided for the Client during the first year of the Agreement shall be at no cost to Client. Contractor shall invoice Client $14,100.00 per year beginning the second year of this Agreement, which rate shall be increased by five percent (5%) per year, for each year of the Agreement Term, and any and all renewal terms. Contractor shall invoice Client annually every year thereafter, including any renewal term. All invoices are due and payable by Client within 30 days. Websttes and/or Contractor-hosted intranets exceeding their storage allowance shall be subject to an additional monthly fee of $50 per 5GB increment. Each Advanced Subsite exceeding 10 GB of storage shall be subject to an additional monthly fee of $50 per 5GB increment. Each Basic Subsite exceeding 5 GB of storage shall be subject to an additional monthly fee of $50 per 5GB increment.

Contractor's Mark. Client agrees that Contractor may place anywhere on the website, at Client's option, (a) an unobtrusive text reading "Created by Vision" or the equivalent, or (b) an inconspicuous and static Vision favicon. The location on the website will be at the Clients discretion.

7. Indemnity.

7.L Indemnification of Contractor. Client will defend, hold harmless, and indemnify Contractor, its officers, directors, shareholders, employees, and agents from and against all Costs resulting from any claim of injury to person, damages to property, or monetary damages arising out of Client's negligence or intentional misconduct or failure to perform obligations under thisAgreement.

7.2. Intellectual Property Indemnity. Contractor will defend, hold harmless and indemnify Client against any third-party action, suit, or proceeding ("Claims") for infringement or alleged infringement of any United States' letters patent, trademark, or copyright ("Intellectual Property") contained in Contractor's VCMS provided under this Agreement.

Notwithstanding the foregoing, Contractor shall have no defense or indemnity obligations for Intellectual Property modified by a party other than Contractor, for Intellectual Property modified in accordance with Client's specifications or instructions, or Claims of infringement based on Client's other products or other third-party products. a Timing. Estimated times are included for convenience. Actual times will vary depending on Client interaction and participation. However, the Parties agree to reasonably cooperate with one another in all respects including, if applicable, in the construction and design of the website in a timely manner.

9. Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the United States of America, and the State of California, excluding choice of law provisions thereof. Any cause of action of Client with respect to the services provided hereunder must be instituted within one year after the claim or cause of action has arisen or be forever barred. The Uniform Computer Information Transactions Act or any version thereof, adopted by any state in any form ("LICITA"), shall not apply to this Agreement arid, to the extent that UOTA is applicable, the parties agree to opt- out of its applicability pursuant to its provisions. In the event a judicial proceeding is necessary, except for permitted equitable relief, the sole forum for resolving disputes arising under or relating to this Agreement are the State and/or federal district courts 8

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) located in the State of California, and all related appellate courts, and the parties hereby consent to tne jurisdiction of such courts, and that venue shall be in the State of California. Each party hereto waives any right to challenge or move the foregoing designated jurisdictions and venue on grounds of inconvenient forum. Service of process may be made in any manner provided for by applicable law.
10 Modification and Waiver.

10.1. Modification. Any modification of this Agreement is valid only if the modification is in writing and signed by both Parties.

10.2. Waiver. The waiver by one Party of any term or condition of this Agreement, or any breach thereof, shall be in writing and shall not be construed to be a general waiver by said Party or as a waiver of any other term or breach.

10.3. Conduct. Neither the course of conduct between the Parties nor any trade practice shall act to modify the provisions of this Agreement, except as expressly stated herein.

11. Confidentiality. To the extent permitted by law, Contractor's Confidential Information shall be treated as confidential and shall not be disclosed to parties other than representatives of Contractor and the authorized representatives of Client, and shall be used only in furtherance of the Services provided under this Agreement. As used in this Agreement, the term "Confidential Information" means (a) proprietary information of Contractor, (b) information marked or designated by Contractor as confidential, (c) information, whether or not in written form and whether or not designated as confidential, that is known to the Client as being treated by Contractor as confidential, or (d) information provided to Contractor by third parties that Contractor is obligated to keep confidential. Confidential Information includes, but is not limited to, all files, writings and documents, recordings, including without limitation all information contained therein, all extractions, notes, compilations and summaries prepared or derived therefrom, copyrights, trademarks, service marks, patents, trade secrets, programs, source code, object code, demos, demonstrations (whether in written, oral, graphic, encoded, encrypted, tangible, or intangible forms, in any media whatsoever) including without limitation demonstrations, know-how, techniques, designs, specifications, drawings, compilations, diagrams, models, samples, flow charts, computer programs, and codes.

12. Merger and Integration. This Agreement supersedes all other written or oral agreements, proposals or understandings with regard to the Services provided for herein.

13. Interoretation. It is understood and agreed that if any interpretation is to be made of this Agreement, the same shall not be construed for or against any of the Parties. In the event of conflict between an attachment and the terms and conditions of this Agreement, then the following hierarchy of interpretation shall govern:

13.1. Terms and conditions of Client's Professional Services Agreement;

13.2. Terms and conditions of thisAgreement ;

13.3. Final cost and scope of work under Addendum B and C;

13.4. Contractor's response to Client's request for RFP, RFQ or RFI;

13.5. Client's RFP, RFQ, or RFI.

14. Counsel. The Parties have each been advised to seek independent legal counsel in entering into this Agreement and the transactions described herein. In the event a Party chooses not to seek inciepencient legal counsel, that Party does so freely and knowingly and waives any such rights to counsel. As a result, the Parties do not believe that any presumption relating to the interpretation of contracts against the drafter of any particular clause should be applied in this case and therefore the Parties knowingly and freely waive its effects. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party.

15. Prevailing Party. Should a dispute, including but not limited to any litigation or arbitration be commenced (including any proceedings in a bankruptcy court) between the Parties hereto or their representatives concerning any provision of this Agreement, or the rights and duties of any person or entity hereunder, the Party prevailing shall be entitled to reasonable attorney's fees and court and expert costs incurred by reason of such action. 9 7.i.3
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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension)

16. Independent Contractor Relationship. The relationship of Contractor, including, without limitation, its employees and subcontractors) with Client is that of an independent contractor and nothing in this Agreement and/or any Addendum shall be construed to create a partnership, joint venture, or employer-employee relationship. Contractor acknowledges and agrees that neither it, nor any of its employees or subcontractors, is or shall be an agent of Client and none of the foregoing is or shall be authorized to make any representation, contract, or commitment on behalf of Client.

17. Counterparts. This Agreement may be executed in counterparts, each of which shall be an originai and au i of which together shall constitute one and the same Agreement. This Agreement becomes effective upon Contractor's receipt of an executed copy of this Agreement.

Force Maieure. Any delay in the performance by either Party hereto of its obligations hereunder shall be excused when such delay in performance is due to any cause or event of any nature whatsoever beyond the reasonable control of such Party, including, without limitation, any act of God; any fire, flood, or weather condition; any computer virus, worm, denial of service attack; any earthquake; any act of a public enemy, war, insurrection, riot, explosion or strike; provided, that written notice thereof must be given by such Party to the other Party within twenty (20) days after occurrence of such cause or event.

19. Severabilitv. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

23. Headings. The titles and headings of the paragraphs of this Agreement have been inserted for convenience of reference only and are not intended to summarize or otherwise describe the subject matter of such paragraphs and shall not be given any consideration in the construction of this Agreement.

21. Survival. The terms and conditions of Sections 4 (Limited Warranty), 9 (Governing Law & Venue), 11 (Confidentiality), 15 (Prevailing Party), 21 (Survival), 24 (No Hire), and 26.3 (Obligations upon Termination) shall survive any termination or expiration of this Agreement.

22. Cooperative Programs. Contractor shall agree to offer the prices and terms and conditions offered herein to other state, local, county, education, and municipal government agencies in the United States who wish to participate in a cooperative purchase program with Contractor.

No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any person or entity other than the Parties and their respective successors and permitted assigns. 21 No Hire. During the period Contractor provides any Services to Client and for one (1) year thereafter, Client shall not, directly or indirectly, solicit or offer to hire, hire, or retain as an employee or contractor persons employed or retained then or within the preceding six (6) months by Contractor (or any of its affiliates), without Contractor's prior written consent in each instance; provided, nothing contained herein shall prevent employment of any person who responds to a general media advertisement or non-directed search inquiry, or who makes an unsolicited contact for employment. 25 successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests or obligations hereunder without the prior written approval of the other Party hereto, except that Contractor may assign this Agreement without Client's consent to an "Affiliate" of Contractor or in connection with an acquisition of Contractor, merger (whether Contractor is the surviving or disappearing entity) or consolidation of Contractor with another entity, or in connection with the sale, assignment, or majority transfer of any stock, membership or other ownership interest in Contractor. "Affiliate" shall mean (a) a domestic entity formed, existing and governed pursuant to the laws of one of the fifty (50) states of the United States of America (or the District of Columbia) controlling, controlled by, or under common control with Contractor. 26 Term. This Agreement will remain in effect for 3 years from the Effective Date ("Initial Term"). Thereafter, it will renew for successive 1 year periods for up to two years, unless either Party refuses such renewal by written notice 30 or more days before the end of the current term.
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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) VISION 2(11. Termination for Cause. This Agreement may also be terminated by the non-breaching party for cause in the event of a material breach of this Agreement or failure to substantially perform obligations; provided, however, that the non-breaching party has given notice to the defaulting party, which fails to cure the default within 30 days after such notice.

26.2. Non-Appropriation of Funds. In the event no funds or insufficient funds are appropriated and budgeted or are otherwise unavailable in any fiscal year for payments due under this Agreement, then Client, upon written notice to Contractor of such occurrence, shall have the unqualified right to terminate this Agreement without any penalty or expense to the Client, except the Client shall pay to the Contractor a sum of money equal to the work completed.

26.3 Obligations upon Termination. Client shall permanently delete all copies of the VCiviS upon termination of this Agreement. Client shall have thirty (30) days after termination of this Agreement to export Client content to its server or systems. At Client's request, Contractor will assist Client with exporting Client content to Client's server or system, which shall be treated as Extra Work.
2Z Notices. All notices under this Agreement shall be in writing and effective on the date of delivery if delivered by personal service, Federal Express, or facsimile; or effective three (3) days after deposit in first class U.S. mail, postage prepaid, to each Party as follows:

Client
Name: City of San Carlos. City Manager's Office
Address: 600 Elm Street, San Carlos, CA 94070
Phone: (650) 802-4228
Email: [email protected]. [email protected] Fax:

Contractor
Name: Associate Counsel, Commercial Contracts
Address: 222 N. Sepulveda Blvd., Suite 1500 _El Seaundo, CA 90245 Phone: (310) 656-3100
Email: contractsa_visioninternet.oam
Fax: (310) 656-3103
2a Insurance. Intentionally omitted.

28. Authority. With the intent to be legally bound, each of the undersigned hereby covenants and acknowledges that he or she (a) has read each of the terms set forth herein, (b) has the authority to execute this Agreement and each initialed Addendum for such person or entity, and (c) expressly consents and agrees that the entity upon behalf of which the undersigned is acting shall be bound by all terms and conditions contained herein.

Adrlend ims:

A Acceptable Use Policy
o Summary of Scope of Work and Cost
Contractor's Proposal orQuote
o Extra Work (if and when applicable)
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V I S IO
ADDENDUM A — Acceptable Use Policy

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) 13/7/2017 Vision : Legal
Legal

ACCEPTABLE USE POLICY
March 15, 2016
Vision requires that all customers and licensees of its Vision Content Management SystemTM and/or visionLiveTM Subscription Services (the "Services"), as defined in each of your Master Services Agreements, conduct themselves with respect for others. In particular, please observe the following Acceptable Use Policy ("AUP") in your use of the Services:

Only use the Services in accordance with all local, state, and federal laws. Do not use the Services for any unlawful or destructive purpose including, but not limited to, copyright and/or trademark infringement. Any text, data, graphics, or any other material displayed or published on your website is, and must continue to be, throughout the term of your Agreement, free from obscene or libelous material.

2. Intellectual Property
You must have all rights necessary to display all the images, data, information or other items being displayed on your website. Any text, data, graphics, or any other material displayed or published on your web site is, and must continue to be, throughout the term of your Agreement, free from violation of or infringement of copyright, trademark, service mark, patent, trade secret, statutory, common law or proprie:ary or intellectual property rights of others. Further, you authorize Vision to display those images, data, information or other items.

3. No Misuse and Snam
You must not misuse any of Vision's resources or cause any disruption to its business ("Misuse"). Examples of Misuse include, but are not limited to, the display of pornography or linking to pornographic material, the sending of chain letters, advertisements, solicitations, or mass mailings to individuals who have not agreed to be contacted in this manner (including, but not limited to, what is commonly referred to as "Spam").

4. No Hacking, Viruses, & Network Attacks
You must not use any process, program or tool via Vision for gaining unauthorized access to the accounts of other parties, including but not limited to, our other customers or account holders, or our other systems. You must not use the Services to make unauthorized attempts to access the systems and networks of others. You must not use the Services as a door or signpost to another server. You must not use the Services in a manner in which system or network resources are unreasonably denied to our other clients. http://www.visioninternet.com/aboutilegal 1/3

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5. Password
You will have password access to the Services. You are responsible for keeping all passwords secure. If your password is lost, stolen or compromised in any way, immediately notify your assigned Vision Account Manager. You are responsible for all use of the Services accessed through the your passwords. Your passwords are not transferable to any third party and are subject to any limits established by Vision.

6. The Internet
You understand there are risks to using the Internet. The reliability, availability and performance of resources accessed through the Internet are beyond Vision's control and cannot be in any way warranted or supported by us. You are responsible for making backup copies of your files. Safeguards relative to copyright, ownership, decency, reliability and integrity of content may be entirely lacking with respect to the Internet and content accessible through it. Vision makes no warranty that any systems accessed will be free of computer viruses. Vision provides access to other systems not controlled by us including, but not limited to, discussion groups, RSS feeds, websites and databases, that may contain pictures and language intended for adult audiences. You further understand that Vision is not responsible for any damages that may result from exposure to such material, and therefore, you agree to hold Vision harmless from any resulting damage.

7. Domain Name and Secure Digital Certificate
Upon your request, Vision will apply for a custom domain name of your choice. However, Vision cannot guarantee the availability of any particular name. You are responsible for all fees charged by the registrar, including setup and renewal fees. You will be responsible for all licensing fees, if any, including but not limited to secure digital certificate renewal fees. Vision will not be responsible for maintaining or renewing domain names, digital certificates, or any other third party registrations.

8. Breach
Neither your Agreement nor the AUP requires that Vision take any action against any customer or licensee for violating this AUP. However, if you violate any term of this AUP, Vision reserves the right to suspend access to the your website without prior notice, and may terminate the Services and/or your Agreement after Vision has given you notice and you fail to cure the violation within 15 days after such notice. If access is only suspended, you will remain liable for all payments due under our Agreement as if access had not been interrupted.

9. Revision of AUP
Vision may change this AUP at any time by posting a new version on this page and notifying you. The new version will become effective on the date indicated by such notice.
uvrimE GUARANTEE
September 3, 2015
Vision provides a 99.9% uptime guarantee for its hosting service. If Vision fails to achieve the guarantee within a calendar month, then you will be entitled to the following credits:

Vision Uptime Guarantee'
Monthly Uptime2 Credit 3

99.9% - 100% 0%

99.5% -- 99.89% 10%

99.0% - 99.49% 20%
Less than 99.0% 30%
http://www.visioninternetcom/about/legal 2/3

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) 8/7/2017 Vision : Legal
Vision's Uptime Guarantee may be updated from time to time at Vision's sole discretion. 2 Refers to percentage of minutes in a calendar month that customers' public facing websites are accessible, exduding routine and scheduled maintenance.
3 Credit applies to monthly hosting fees. For visionLive customers, the credit will be calculated based on the then-current price for hosting only services. Any credits will be applied to the next invoice following the month of the incident. Credits do not apply to downtime due to force majeure events, including Distributed Denial of Service (DDoS) attacks that succeed in overcoming Vision's third-party provided DDoS defense.

Free Consultation
Speak with a government website specialist to learn more about how Vision can help you improve your website
Request Consultation (http://info.visioninternet.com/free-consultation) Work
See how we have helped others
(/work)
htlp://www.visioninternet.com/aboutilegal 313

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) Addendum B

SUMMARY OF SCOPE OF WORK & COST
The final Proposal, included in Addendum C shall reflect the final scope of work and cost.

Website Development
SERVICk

WEBSITE DEVELOPMENT PACKAGE
The website development package includes:
• Project Management
• Consultation
• Programming/CMS Implementation
• Mobile / Responsive Web Design Implementation
• Content Strategy Package — Basic
• Extranet
• Google Translate
- Online Payment Integration
• SMS Component
- Streaming Video Center
- Vision Search
- Yahoo Weather
Training (2-days onsite)
, 200 Pages of Content Migration

INTRANET
Includes the development of an Intranet, which is a private website, located behind your firewall on your own servers and accessible only by your internal users to be used to sharing and networking. • The design will be based on the approved design for your public website, but may include its own color scheme, collage, navigation and layout.
• Vision will migrate or add up to 25 pages of content. • RSS viewer widgets can be used to retrieve and display information from the main website, such as news and events, and display them on the Intranet.
- The Intranet must be hosted on the customer's server according to Vision's specifications.
• Web-based training
• 200 Pages of content migration
QT_Y COST
1 $31,530.00
1 $16,955.00
Project Visioning
EFAIL_EC Pit c_p_51

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension)

CONTENT STRATEGY PACKAGE - STANDARD
The Standard Content Strategy Package will train your staff to write for the web and includes:
• Content development and migration best practices guide • Website content best practices guide
• Website persona exercise materials
• Communicating with your audience exercise materials
• Task process evaluation exercise materials
• Writing for the Web textbook (1 copy)
• Customized on-site plain language exercise
• Customized Writing for the Web training (1-day onsite) $7,500.00
Graphic Desian

SERVICE

ADVANCED UX ANALYSIS PACKAGE
Includes an in-depth User Experience (UX) Analysis of your website:
• Advanced Site Analytics: Identify and analyze top pages for desktop and mobile, entrance and exit pages
• Online Community Surveys: Conduct and analyze the results of a stakeholder survey and a community survey
• Heatmap Analysis: Capture and analyze heat maps and eye tracking maps
• Recorded User Testing: Conduct remote video user testing for 5 users on 5 tasks
• Comprehensive Report: Deliver a report outlining key insights and recommendations for layout, navigation, content and design for the new website which will serve as a guide for the rest of the design and development process
QT_Y
1 COST
$3,000.00

ADVANCED (PREMIUM) DESIGN PACKAGE
Includes Advanced UX + one option from the following:
• Video background homepage with interior pages
• Video/image carousel background homepage with interior pages • Anchored scrolling homepage
• Cards/tiles homepage or parallax homepage
1 $6,500.00

GRAPHIC REDESIGN - ADDITIONAL DESIGN CONCEPTS
2 $4,840.00
• Includes the delivery of three preliminary concepts to choose from during the design phase

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) •I . 104 JIY
Software
vLivo Edition
vLIVE STANDARD EDITION
vLIVE FOR INTRANET
QT_Y C051
1 See 5 Year Total
Cost Summary
for details
1 See 5 Year Total
Cost Summary
for details
selected vLive Components

OTY COST

MEGA MENU DESIGNER
The Mega Menu Designer allows you to fully customize and design flexible menus on your website, by:
• Defining the levels of navigation and number of columns in your menu • Adding extra columns and place widgets in these columns (Widgets that can be added to Mega Menus include: News, Events, RFPs, FAQs, Facilities, Jobs, and the Staff, Business, and Service Directories) • Stacking multiple widgets in the same column
1 $2,750.00
APPROVAL CYCLE 1 $4,630.00

INTRANET - CONTENT SHARING PACKAGE
a Adds the ability to share content from your main, public-facing website onto your Intranet. Components that have the content sharing ability include News, Calendar, Staff Directory and Job Posting components.

An icon will indicate which items came from the main website. 1 $2,000.00
Additional Services
SfRVICg
gIl
1 $20,000.00 WEBSITE ACCESSIBILITY TRAINING AND CONSULTATION — PLUS Contractor will provide a frontend website design, excluding third-party tools, compliant with WCAG 2.0 upon Completion and only to the extent validated by Contractor's accessible content formatting and testing process. This service includes advanced training and services to help you create and maintain an accessible website:
• Automated Testing: Testing will be conducted during the design stage to ensure color contrast meets desired standard. An automated site

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) scan will verify the compliance of Contractor-migrated content before delivery of the development site.
• Manual Testing: Manual testing of the new website's top five tasks will be conducted by users with a variety of disabilities (vision-impaired, hearing-impaired, difficulty using a mouse) in order to assess compliance and usability. Contractor shall deliver a report outlining remediation recommendations.
• Graphic Design: Development of a graphic design in compliance with WCAG 2.0 A or AA requirements upon Completion. Contractor will test for color contrast and font size, and will consult with Client on issues that may need to be addressed. Contractor will provide design concept[s] as enumerated in the Graphic Design section. • Content Accessibility Formatting: Contractor will test the development website after Contractor's content migration is completed. 250 pages migrated by Vision (e.g. header sequencing, page content, image alt- tags) will be reformatted to comply with WCAG 2.0 AA standards.

However, multimedia content (e.g. videos, audio, etc.), tables, and PDF files will not be formatted to comply with WCAG standards.

Reformatting additional pages beyond the 250 shall be considered Extra Work.
• WCAG-Focused CMS Training: Training in features of the CMS that are accessibility-focused functions during CMS training with Client's assigned Technical Trainer.
• WCAG Standards Training: One-day on Client's premises, in-depth training of content editors in accessibility standards. The training consists of a four hour class that is repeated in the morning and afternoon to allow for scheduling flexibility with Client's content editors.

WCAG Accessibility Statement: Contractor will create one Accessibility Statement page upon Completion, to be placed on Client's website.

Accessibility Policy: Provide guidance on developing an agency accessibility policy, including best practices and sample policies.

Total Project Fees $99,705.00 I

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) 5 Year Total Cost Summary
Year 1
Included Professional Services and FREE is tYcar of:
vLive Standard Edition
vLive for Intranet
$99,705.00
Year 2
2' Year of:
vLive Standard Edition
vLive for Intranet
$14,100.00
Year 3
3 rd Year of:
vLive Standard Edition
vLive for Intranet
$14,805.00
Year 4
4t h Year of:
vLive Standard Edition
vLive for Intranet
Redesign)

$15,545.00
(excludes
Graphics
Year 5
5th Year of:
vLive Standard Edition
vLive for Intranet
$16,322.00
PROJECT CONTINGENCY $25,295.00
5 Year Total $185,772 I

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) VIS IO N"
Addendum C
Vision Proposal

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) VIS IO N Addendum D
Extra Work- Sample
This &Iclendom is made and entered into by Vision Technology Solutions, LLC ("Contractor") and CLIENT, STATE ("Client") as of the daL of full execution.

Contractor and Cl:ent herby mutualiy acknowledge and agree that:

1. On DATE, Contractor and Client entered into the Master Services Agreement ("Agreement"), incorporated herrin by reference.

2. The Agreement, including all other terms and conditions therein, shall continue in effect.

3. In the evosit 01 any conflict or inconsistency hetween the provisions of this Addendum arid the Agreement, the provisions of this Adderiflum shall control only to the extent of the services provided in this Addendum, anti not any othei subject matter cow:red by the Agreement.

Included Services
Extra Work Fees
Client agwcs to ply Contractor az follows:

Price. Contractor aces to perform work set forth in this Addends im for [$a,bcd].

2. 13,pyment. Zontractor will submit Itemized invoices to Client for tha payments required by this Adrienchm t, and all invoic-r, will be due and payable by Client within 30 days:

TBD.

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) ®
ACC0RE)
_

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYTY)
6/2/2017
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: if the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsementfsl.

PRODUCER
HAUSER
5905 E. GALBRAITH RD. SUITE 100
Cincinnati OH 45236

CONTACT
NAME: Vicki Dixon

IC No 513-745-9200

E- MAIL
ADDRESS: [email protected]

FAX
fA/C No 513- 984- 7059

INSURER(S) AFFORDING COVERAGE EA!Cll

INSURER A:Lloyds of London

INSURED
Vision Holdings LLC and
Vision Technology Solutions LLC.
222 N. Sepulveda Blvd. Suite 1500
El Segundo CA 90245
VIS10-2

INSURER B :Citizens Ins. Co. of America
INSURER c:Allmerica Financial Benefit

31534
41840

INSURER :

INSURER E:

INSURER F

COVERAGES
CERTIFICATE NUMBER: 530571648
REVISION NUMBER:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD

INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

ENSR
LTR lYPE OF INSURANCE

A-DDLGUBR
!USD WVD POUCY NUMBER

POLICY EFF
(MIINDDITYYYLIMM/DD/YYTYL.

POLICY EXP
LIMITS
B x COMMERCIAL GENERAL LJABILITY Y Y 07W A400315 8115/2016 8/15/2017 EACH OCCURRENCE 51,000,000 I $500,000 CLAIMS-MADE X OCCUR

DAMAGE TO RENTED
PREMISES (Ea occurrence)
MED EXP (Any one person) $5,000
PERSONAL & ADV INJURY $1,000,000
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $2,000,000 I POLICY X 72. LOC PRODUCTS- COMP/OP AGO $2,000,000
OTHER: $
_
—
—
X _

AUTOMOBILE LIABILITY

ANY AUTO
Y 07W A400315 8/1512016 8/15/2017 COMBINED SINGLE LIMIT (Ea accident) 5 1,000,000 i
BODILY INJURY (Per person) $

ALL OWNED
AUTOS

HIRED AUTOS
SCH

TOSEDULED

AU NON-OWNED
AUTOS
BODILY INJURY (Per accident) $

PROPERTY DAMAGE
(Per ecddent) $
$
B X _ UMBRELLA LIAR

EXCESS LIAR

X OCCUR

CLAIMS-MADE
Y Y 07W A400315 8/15,2016 8/15/2017 EACH OCCURRENCE $3,000,000" AGGREGATE $3,000,000
DED RETENTION $0 $

C WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
y W2W A398655 8/1512016 STATUTE ER

8/15/2017 .,... 1 PER
I
0TH-
Y / N
ANY PROPRIETOR/PARTNER/EXECUTIVE [
OFFICERNEMBER EXCLUDED? N
(Mandatory in NH)
N IA E.L. EACH ACCIDENT $1,000,000/
E.L. DISEASE - EA EMPLOYEE $1,000,000
If yes, describe under
DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $1,000,000

8. '''
Property/Special/RC
Professional & Cyber
07W A400315
UGS2688168
8/15/2016
8/15/2016
8/15/2017
8115/2017
Contents LimitiDedt $53,0454500
Professional & Cyber $1,500,000
Deduct. Prof & Cyber $5,000
DESCRIPTION OF OPERATIONS I LOCATIONS 1 VEHICLES (ACORD 101, Additional Remarks Schedule. may be attached If more space is required) NAIC information for Lloyds of London
Alien ID # AA1120098
Lloyd's Syndicate #3624
City of San Carlos is included as an additional insured(s) soleiy with respect to general liability coverage as evidenced herein as required by written contract with respect to work performed by the named insured(s).

CERTIFICATE HOLDER
City of San Carlos
600 Elm Street
San Carlos CA 94070
CANCELLATION 30 days except 10 days non payment

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

AUTHORIZED REPRESENTATIVE
•4 bje.A.A.o.-Le
© 1968-2014 ACORD CORPORATION. All rights reserved.

ACORD 25(2014/01)
The ACORD name and logo are registered marks of ACORD

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) Vision Holdings LLC. and Vision Technology Solutions LLC. 08-15-2016 to 08-15-2017
POLICY NUMBER: 07W-A400315 BUSINESSOWNERS
BP 06 86 01 06
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CALIFORNIA = HIRED AUTO AND NON-OWNED

AUTO LIABILITY
This endorsement modifies insurance provided under the following:

BUSINESSOWNERS COVERAGE FORM

SCHEDULE
Coverage Additional Premium
A. Hired Auto Liability: $ included
B. Non-Owned Auto Liability: $ included
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

A. Throughout this endorsement the term spouse C. For insurance provided by this endorsement only:
means:

Spouse or a registered domestic partner under
California law.

B. Insurance is provided only for those coverages for
which a specific premium charge is shown in the
Declarations or in the Schedule.

1. Hired Auto Liability
The insurance provided under Paragraph A.1.

Business Liability in Section II — Liability,
applies to "bodily injury" or "property damage"
arising out of the maintenance or use of a
"hired auto" by you or your "employees in the
course of your business.

2. Non-Owned Auto Liability
The insurance provided under Paragraph A.1.

Business Liability in Section II — Liability,
applies to "bodily injury" or "property damage"
arising out of the use of any "non-owned auto"
in your business by any person.

1. The exclusions, under the Paragraph B.1.

Applicable To Business Liability Coverages
in Section 11 — Liability, other than Exclusions
a., b., d., f. and I. and the Nuclear Energy Li-
ability Exclusion, are deleted and replaced by
the following:
a. "Bodily injury" to:
(1) An "employee" of the insured arising out
of and in the course of:
(a) Employment by the insured; or
(b) Performing duties related to the
conduct of the insureds business; or
(2) The spouse, child, parent, brother or
sister of that "employee" as a conse-
quence of Paragraph (1) above.

This exclusion applies:
(1) Whether the insured may be liable as an
employer or in any other capacity; and
BP 06 86 01 06 © ISO Properties, Inc., 2005 Page 1 of 2 0

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) (2) To any obligation to share damages with
or repay someone else who must pay
damages because of injury.

This exclusion does not apply to:
(1) Liability assumed by the insured under
an "insured contract"; or
(2) "Bodily injury" arising out of and in the
course of domestic employment by the
insured unless benefits for such injury
are in whole or in part either payable or
required to be provided under any work-
ers compensation law.
b. "Property damage" to:
(1) Property owned or being transported by,
or rented or loaned to the insured; or
(2) Property in the care, custody or control
of the insured. •

2. Paragraph C. Who Is An Insured in Section II
— Liability, is replaced by the following:

1. Each of the following is an insured under
this endorsement to the extent set forth be-
low:
a. You;
b. Any other person using a "hired auto"
with your permission;
c. For a "non-owned auto":
(1) Any partner or "executive officer' of
yours; or
(2) Any "employee" of yours
but only while such "non-owned auto" is
being used in your business; and
d. Any other person or organization, but
only for their liability because of acts or
omissions of an insured under a., b. or
c. above.

2. None of the following is an insured:
a. Any person engaged in the business of
his or her employer for "bodily injury" to
any co-"employee" of such person in-
jured in the course of employment, or to
the spouse, child, parent, brother or sis-
ter of that co-"employee" as a conse-
quence of such "bodily injury", or for any
obligation to share damages with or re-
pay someone else who must pay dam-
ages because of the injury;
b. Any partner or "executive officer' for any
"auto" owned by such partner or officer
or a member of his or her household;
c. Any person while employed in or other-
wise engaged in duties in connection
with an "auto business", other than an
"auto business" you operate;
d. The owner or lessee (of whom you are a
sublessee) of a "hired auto" or the owner
of a "non-owned auto" or any agent or
"employee" of any such owner or lessee;
Or
e. Any person or organization for the con-
duct of any current or past partnership or
joint venture that is not shown as a
Named Insured in the Declarations.

D. The following additional definitions apply:

1. "Auto Business" means the business or occu-
pation of selling, repairing, servicing, storing or
parking "autos".

2. "Hired Auto" means any "auto" you lease, hire,
rent or borrow. This does not include any "auto"
you lease, hire, rent or borrow from any of your
"employees", your partners or your "executive
officers" or members of their households.

3. "Non-Owned Auto" means any "auto" you do
not own, lease, hire, rent or borrow which is
used in connection with your business. This in-
cludes "autos" owned by your "employees",
your partners or your "executive officers", or
members of their households, but only while
used in your business or your personal affairs.

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension) Vision Holdings LLC and Vision Technology Solutions LLC.

POLICY# 07W-A400315
08-15-2016 to 08-15-2017
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY

ADDITIONAL INSURED - DESIGNATED INDIVIDUAL OR ENTITY
This endorsement modifies insurance provided under the following:

TECHNOLOGY PROFESSIONAL ADVANTAGE FOR AVENUES
Schedule
Name of Additional Insured Individual Or Entity: Any Person or Organization whom yoa have agreed to include as an additional insured under a written contract provided such contract was executed prior to the date of the loss
Of no entry appears above, information required to complete this endorsement will be shoW17 in the Declarations as applicable to this endorsement.)
SECTION F DEFINITIONS, the definition of "You" is amended to include as an additional insured the individual(s) or entity(s) shown In the Schedule above, but only with respect to liability for "damages" caused, in whole or in part, by an "anomaly" in 'your product" or "your work" caused by "yo1.4" or those acting on "your" behalf.

ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS REMAIN UNCHANGED. 391 -162605 12 includes copyrighted material of Insurance Services Office, Inc„ with its permission Page 1 of 1

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Attachment: Agreement with Vision Technology Solutions 6.09.17 (Granicus Website Extension)

CITY COUNCIL

STAFF REPORT

MEETING DATE: June 13, 2022

ITEM TITLE: Receive an Update on Trails in San Carlos.

RECOMMENDATION:

Staff recommends that the City Council receive an update on trails in San Carlos.

FISCAL IMPLICATIONS:

There are no fisca l implications associated with receiving this report. There are a number of projects and improvements that have been identified that are currently listed on the Capital Projects Unfunded List. Should the City Council direct staff to implement one or more o f the improvements, funding allocations for the project will be requested in the Fiscal Year 2023 -25 budget cycle.

BACKGROUND:

Trails Connection Plan

The City Council authorized establishment of the Trails Connections Committee (“Committee”) as a City of San Carlos Task Force on April 14, 2003. The City Council directed the Committee to begin discussion s with neighboring agencies regarding possible connections to San Carlos trails. The C ommittee entered discussions with Mid-Peninsula Open Space District (“Mid-Pen OSD”), San Francisco Public Utilities Commission (“SFP UC”), and Los Vientos neighbors to explore the possibility of connecting existing trails in San Carlos with these neighboring agencies and with other trails within San Carlos. The Committee th en completed the Trail Connections Plan in November 2006 (Attachment 1).

At their January 10, 2007 meeting, the former Parks and Recreation Commission unanimously recommended approval of the Trail Connections Plan (“Plan”) to the City Council . The Plan identified 14 possible new connections to existing trails in San Carlos and surrounding areas. Of the 14 connections, six are connect trails within San Carlos and eight are regional connections.

A map was developed showing the possible connection points (At tachment 2). The City Council approved the Plan on February 12, 2007.

Following the approval of the Plan, staff worked with Mid -Pen OSD, SFPUC , and the Los Vientos neighborhood to provide trail access to the Pulgas Ridge O pen Space District (“Pulgas Ridge OSD”) as identified in the Parks Master Plan and City of San Carlos General Plan. The City and Mid-Pen OSD held a public meeting on September 28, 2010 at the trail connection site

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2 located at the foot of Los Vientos Way. The public meeting was part of Mi d-Pen OSD’s policy to conduct outreach meetings to ensure public support of proposed projects. Though many efforts were made by the City, Mid-Pen OSD, and the neighbors, the proposed trail connection was not supported by SFPUC. As such, further efforts ceased.

San Carlos Hillside Trails Plan

On March 13, 2012, Parks and Recreation Director Doug Long submitted a Notice of Determination (“NOD”), pursuant to the provisions of CEQA to San Mateo County, for The San Carlos Hillside Trails Plan, specifically fo r the trails located at Big Canyon, Eaton, and Vista Parks, as well as Devonshire Canyon. The project description provided on the NOD stated, “The San Carlos Hillside Trails Plan identifies alignments for proposed trails and provides design standards and c onstruction protocols for City hillside trails. The design standards and construction protocols were designed to ensure that trails developed in San Carlos' hillside parks and open space areas are sited so as to minimize potential impacts to sensitive habi tat and species, and constructed and maintained to protect the watershed from erosion. Adoption of the Plan would result in the development of an additional 1.55 miles of trails.” Mitigation measures were made a condition of approval of the project. A mitigation or monitoring plan was adopted for the project. Findings were made pursuant to the provisions of CEQA.

At its March 12, 2012 meeting, the City Council adopted a resolution certifying the Initial Study and Mitigated Negative Declaration for the San Carlos Hillside Trails Plan and adopted a Mitigated Measures Monitoring Program, all in accordance with the California Environmental Quality Act ( “CEQA”). The Council then unanimously adopted the San Carlos Hillside Trails Plan.

Following the adoption o f the Hillside Trails Plan, staff implemented the new ly recommended trails at both Big Canyon and Eaton parks. After months of trail construction, led by community trail volunteers, new trails were completed along with five new trail bridges. A ribbon cutt ing ceremony was held on September 29, 2012 with City staff, trail volunteers , and community members present.

Following the completion of these new trail segments identified in the Hillside Trails Plan, staff continued to work with community trail volunte er, Tom Morse, and additional community volunteer support, to expand the existing trail system in Big Canyon and Eaton parks . As a result, four new miles of trails have been built in the last decade.

ANALYSIS:

In spite the trail work completed in the las t 10 years, the total miles of trails in San Carlos still does not meet the City ’s standard of one mile of trails per 1,000 residents (City of San Carlos, General Plan, Parks and Recreation Element, page 167). Improving the City’s trail system ranked highest among the 12 specific improvements tested in a needs assessment survey as part of the 2009 – 2029 Parks Master Plan which was accepted by the Council in August 2008.

Continued efforts to implement the Plan will benefit San Carlos in many ways. By pro viding citizens additional venues and distances to walk, run, and hike, t hese potential trail connections will facilitate increased wellness activity and promote good health. Following the pandemic, more residents have been visiting our open space parks an d trails and are more involved in healthy, low impact recreation on a regular basis. Additionally, trail users would be able to enjoy

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3 more scenic views and panoramic vistas from certain hillside trails. Completion of the trail connections will allow residents to walk from Eaton or Big Canyon Park and continue on to other San Carlos locations, Pulgas Ridge, the Belmont Trails System, San Francisco Watershed land and possibly Edgewood Park.

Additionally, specific recommendations to the Big Canyon and Eaton p ark trails outlined in the Parks Master Plan include : enhancing the pedestrian entrance on Brittan with improved park signage, additional seating, a drinking fountain, and buffer adjacent residence with native vegetation; construction of new trails in the eastern portion of the park; creating a trail connection to Heather School; continuing to maintain and improve trails using best practices, with particular attention to soil erosion and trail drainage; and , widening selected trails for multi- use purposes.

Should City Council consider prioritizing new efforts for trail connections, construction of new trails or other trail improvements, staff recommends contracting with a consultant to facilitate the process and would require an additional appropriation of funds in the budget to complete a project.

ALTERNATIVES:

Options available to the City Council include:

1. Provide staff with direction; or

2. Do not provide staff with direction; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Amy Newby,
Parks & Recreation Director

Approved for submission by:

_________________________
Jeff Maltbie, City Manager

ATTACHMENT(S):

1. Trail Connections Plan

2. Map of Connections 4.10.03 Rev 2-22-11

3. San Carlos Hillside Trails Plan -Final Version

4. Map of Trails at Big Canyon Park

5. Map of Trails at Eaton Park

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1 POTENTIAL SAN CARLOS TRAIL CONNECTIONS
November 2, 2006

FIRST PRIORITY

1. CRESTVIEW TO PULGAS RIDGE OPEN SPACE PRESERVE AND SAN FRANCISCO WATERSHED LANDS. This connection provides access from San Carlos to Pulgas Ridge Open Space Preserve as well as the Sa n Francisco Watershed lands. The Mid Peninsula Regional Open Space District has a plan that places a trail within 100 yards of Crestview Drive. The proposed East Ridge Trail in the County of San Mateo’s trail plan passes here as well.

The East Ridge Trail would connect to the existing C ounty of San Mateo Cross Country Course, Sheep Camp County trail and t he Belmont City Trail system. Parking would be available on Crestview drive at an existing gate on Crestview.

2. UNIMPROVED CITY OWNED PARCEL ON CRESTVIEW (ACROSS CRESTVIEW DRIVE FROM VISTA PARK) TO SAN FRANCISCO WATER SHED LANDS. This will provide a second connection to the San Francisco Watershed lands, City of Belmont trails, San Mateo County trails and Pulgas Ridge Open Space Preserve from the City o wned Parcel on Crestview Drive. A future trail from Devonshire Canyon through Vista Park will help complete a future multi jurisdictional “loop” trail and would connect to existing Sheep Camp trail and other county trails, the Belmont trail system (north), Pulgas Ridge Open Space Preserve, Edgewood Park and county trails (south).

3. DEVONSHIRE TRAIL SYSTEM TO CRESTVIEW. This connection would lead to the improvement of the existing trail from Devonshire/Oakley to Crestview via an existing easement connecting top of trail with Crestview. A new easement should be requested of developer at Devonshire and Oakley in the canyon. This is an important extension from No. 1.

4. HIGHLAND AREA/HEATHER PARK TO BIG CANYON/EATON TRAIL SYSTEM.

This connection would allow f or connection between the Devonshire Canyon system and Big Canyon/Eaton Parks and would expand Big Canyon Park trails. This connection has the benefit of much currently city owned land and trails. Permission would be needed from 3-4 property owners across steep hillside portions of their properties. The Sierra Club had mapped a trail from Big Canyon Park to the edge of City Property. Consider expanding Big Canyon Park to include all the City owned land on the North Side of Brittan Ave and Eaton Park on the South Side.

5. LYNTON/OAKLEY AVE TO CLUB DRIVE TO WITHERIDGE RD. TO BELMONT TRAIL SYSTEM. This connection would connect the proposed Devonshire trail system to Belmont’s existing trail system and beyond. Will likely require consent of property owners in the area utilizing steep undevelopable portions of their property.

6. END OF BRITTAN TO PULGAS RIDGE OPEN SPACE PRESERVE. This connection would allow access from Big Canyon and Eaton trails to Pulgas Ridge Open Space Preserve via Crestview Park, currently connecting walkways and city land. This is also within approximately 100 yards of a proposed trail in Pulgas Ridge Open Space Preserve.

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Attachment: Trail Connections Plan (Update on San Carlos Trails) 2 7. CRANFIELD AVENUE TO CLUB DRIVE TO WITHERIDGE IN BELMONT This is a paper street, currently overgrown and is a trail l isted by the Trails Center. It is not used by South County Fire.

8. EATON PARK TO CITY OWNED PARCEL OFF LA MESA DRIVE VIA LOMA ROAD TO EDGEWOOD PARK. This potential connection would use some existing access roads and seek permission from private landowners to provide a more direct connection to the Eaton Park, Big Canyon systems from Edgewood Park and Pulgas Ridge Open Space Preserve . The terminus at the lower portion of Crestview would be close to Pulgas Ridge Open Space Preserve and across the street from the Edgewood Park entrance.

SECOND PRIORITY

9. OAKLEY/DEVONSHIRE TO CRESTVIEW DRIVE AND VISTA PARK.

This connection links upper Devonshire Blvd to Crestview Drive at Vista Park (potential new trail) and near Normandy Drive (via existing unimproved trail) See No. 3 above.

10. LANDS OF ROSA FLORES VIA CHESHAM TO PROPOSED DEVONSHIRE TRAIL SYSTEM. Currently a fire access road exists to access the open space easements existing in the Rosa Flores subdivision over large areas of Devonshire Canyon, providing another access into the lower end of the proposed system.

11. LANDS OF ROSA FLORES VIA WINDING WAY TO PROPOSED DEVONSHIRE TRAIL SYSTEM. Currently a fire access road exists to access the open space easements existing in the Rosa Flores subdivision over large areas of Devonshire Canyon, providing another access into the lower end of the proposed system. A current development proposal will provide a trail access easement off Winding way and a grant of $25,000.

12. EXISTING TRAIL FROM HIGHLANDS PARK TO WINDING WAY . Man y paper pathway easements existing in the county area have the potential to connect with #10 and 11 above more directly. Access currently is on City/County streets.

13. ALAMEDA TO DUNDEE AND HIGHLAND PARK ACROSS BLACK MOUNTAIN PROPERTY TO BELL/LUPIN AVE. This is on the Midpeninsula Regional Open Space District plan as a conceptual access into District lands. Some of this area is currently in open space easements or could be with future development. An existing trail damaged in 1983 could be rebuilt and improved.

Would be easternmost access point into system.

14. LOWER CRESTVIEW DRIVE TO PULGAS RIDGE OPEN SPACE PRESERVE. This connection would allow for more direct access to the preserve and avoid having to travel on Edmonds road.

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Attachment: Trail Connections Plan (Update on San Carlos Trails) EATON

BIG CANYON

HIGHLANDS
VISTA

CRESTVIEW

SAN CARLOS AVE

CRESTVIEW DR

CLUB DR

MELENDY DR

BRITTAN AVE

EXETER AVE

BAYVIEW DR

SAN CARLOS AVE

HEWITT DR

WELLINGTON DR

CLIFTON AVE

EATON AVE

ALAMEDA DE LAS PULGAS

LA MESA DR

MADERA AVE

DE ANZA AVE

TAMARACK AVE

SUNSET DR

HILL AVE

GREENBRIER RD

BEVERLY DR

FAY AVE

CORONADO AVE

MANOR DR

CARMELITA DR

LOMA RD

RIDGE RD

HOWARD AVE

LUPIN WY

PLYMOUTH AVE

GRACELAND AVE

TRAMANTO DR

TORINO DR

BAUER DR

LESLIE DR

DRAKE CT

DEBBIE LN

WILDWOOD AVE

EMERALD AVE

LYNTON AVE

OAKVIEW DR

OAKLEY AVE

DALE AVE

ROBIN WY

DARTMOUTH AVE

DAYTON AVE

ROLAND AVE

KINGS CT

ABERDEEN DR

WESSEX WY

EDMOND DR

BROOK ST

ROCKRIDGE RD

VISTA DEL GRANDE

MOLTON AVE

PORTO MARINO DR

HEATHER DRGLASGOW LN

DEVONSHIRE BLVD

CHILTON AVE

NEAL AVE

CABOT CT

THORNHILL DR

NANETTE DR

TERRACE RD

PEBBLE DR

SEQUOIA CT

OAK CREEK LN

SHERWOOD DR

EDGEHILL DR

KENT AVE

HYDE PARK AVE

PORTOFINO DR

BELLE AVE

NORMANDY CT

WINDSOR DR

COVENTRY CT

CRANFIELD AVE

BROMLEY DR

CORDILLERAS AVE

EXETER WY

MAPLE WY

REGENT CT

MESA VERDE WY

FLEETWOOD DR

ARUNDEL RD

ELSTON CT

HILLTOP DR

DEBBIE PL

WILLIAMS LN

COLEMAN CT

WILSHIRE CT

CAMBRIDGE ST

DUNDEE LN

KENTON AVE

WHITMAN CT

WILLOW GLEN

QUEENS COURT

CURRY CT

DICKENS CT

SOMERSET CT

ROGERS AVE

FAIRBANKS AVE

APPIAN WY

CHARLTON ST

SHRATTON AVE

PEARL AVE

CAMBORNE AVE

GREENWOOD AVE

GRANITE CT

AMBER CT

VAL MAR PL

LOCARNO WY

KIRKWOOD WY

RUBY AVE

BAUER CT

FRANCISCAN CT

CYPRESS CT

ADAM CT

SAN REMO WY

CAPRINO WY

ALDERLEE WY

PORTOFINO CT

ROSLYN AVE

SAN MIGUEL WY

MALABAR CT

HUDSON CT

SAN SIMEON WY

HOSMER CT

ASHFORD AVE

PORTO ROSA WY

GAYLORD ST

MAJORCA WY

MILANO WY

CURTIS CT

LESLIE CT

STEVENS CT

PICCADILLY CT

BURNHAM CT

WINDSOR CT

CRESTVIEW CT

OAKLEY AVE

HOWARD AVE

HILL AVE

DEVONSHIRE BLVD

EDGEHILL DR
INTERSTATE HIGHWAY 280

DEVONSHIRE BLVD CHESHAM AVE

DOLTON AVE

HASSLER RD

OAKLEY AVE

WINDSOR DR

LYNTON AVE

WINDING WY

DOVER CT

ROSLYN AVE

TORINO DR

DEVONSHIRE CIR

BARBARA LN

HIDDEN VALLEY DR

WINDING WY
INTERSTATE HIGHWAY 280

PALOMAR DR

EDGEWOOD RD

LOMA RD

HERMOSA RD

MONTALVO RD

ELVANADA RD

ESTRADA PL

BROMLEY DR

LOMA CT

CRESTVIEW DR

S PALOMAR DR

LOS CERROS RD
/C83/C65/C78/C32/C67/C65/C82/C76/C79/C83/C32/C80/C79/C84/C69/C78/C84/C73/C65/C76/C32/C84/C82/C65/C73/C76/C32/C67/C79/C78/C78/C69/C67/C84/C73/C79/C78/C83 Heather School
Department of Parks and Recreation

1. 3.

Lands of Rosa Flores via Winding Way to Proposed Devonshire Trail System
Currently a fire access road exists to access the open space easements existing in the Rosa Flores subdivision over large areas of Devonshire valley, providing another access into the lower end of the proposed system.

Existing Trail from Higlands Parks to Winding Way
Many paper pathway easements exist in county area have
the potential to connect with #7 and #8 above more directly.

Access currently is on the streets.

This is on the MPOSD plan as a conceptual access into the OSD lands. Some of this area is currently in open space easments or could be with future development. Would be easternmost access point into system.

7. 0 0.1 0.2 0.3 0.4 0.50.05 Miles
Lower Crestview Drive to Pulgas Ridge OS Preserve
This connection would allow for a more direct access into the preserve and avoid having to travel on Edmonds road.

Pulgas Ridge Open SpacePulgas Ridge Open Space

MPROSDMPROSD

4. 14.

Existing Trails
Proposed Trails
Potential Connections
Belmont Trails
San Carlos City Limits
San Carlos Parks
City Owned Parcels
San Mateo County
Edgewood County ParkEdgewood County Park
Legend
The following city maintined starcases to be
designated as trails:

Vista Dr to Hillcrest Rd at 508 Hillcrest Rd
400 Sycamore Street to 315 Hillcrest Rd
790 Orange Ave to 1807 Elizabeth Street

15. 12.

13. Alameda to Dundee and Higland Park Across Black Mountain

14. Eaton Park to City Owned Parcel off La Mesa Drive Via Loma Rd to Edgewood Park
Potential connection would use some existing access road and seek permission from private landowners to provide a more direct connection to the Eaton park, Big Canyon systems. The terminus would be close to Pulgas Ridge OS Preserve and across the street from the Edgewood Park entrance.

6. 4.

7. Lyton/Oakely Ave to Club Drive to Witheridge Rd to Belmont Trail System.

This connection will connect proposed Devonshire trail system to Belmont's existing trail system and beyond.

Los Vientos to Pulgas Ridge OS Preserve
Eases access between proposed Devonshire trail system and Pulgas Ridge OSD Preserve as well as the Watershed lands.

The end of the street is at the boundary of the preserve and is adjacent to the San Francisco Watershed lands. The Mid Peninsula OSD has a plan that places a trail within 100 yds of this connection.

The proposed East Ridge trail passes here as well.

3. 2.

This connection is an important alternate route to #2 as it is at the other end of the canyon. Review of the apporvals indicates this easement acts as both a driveway for a parcel and access to a landlocked open space pare. One property owner (on Melendy) expressed interest in providing access in exchange for a promise not to use other access across his property on Melendy of little current utility for a trail.

Devonshire Trail System to Crestview Across Existing EasementHighland area/Heather Park to Big Canyon/Eaton Trail System Would allow for connection between Devonshire system and Big Canyon/Eaton. Would also expand Big Canyon trails. Has the benefit of much currently city owned land and some current trails for connection. Needs permission from 3-4 property owners across steep hillside portions of their properties.

5. 6.

Cranfield to Club Drive to Witheridge
This connection is highlighted by an existing trail that is currently overgrown. It is a paper street on City maps and listed by the Trails Center as part of their trail inventory.

End of Brittan to Pulgas Ridge OS Preserve
Will allow access from Big Canyon and Eaton trails to Pulgas Ridge OS Preserve via Crestview Park, current connecting walkways and city land. This is also within approximately 100 yards of a proposed trail in Pulgas Ridge OS Preserve.

1. Unimproved City Lot (Across Crestview Dr from Vista Park) to San Francisco Watershed Lands
Would connect the proposed Devonshire trail system to the proposed north-south trail in the County Master Plan called the East Ridge Trail over the San Francisco watershed lands and would connect to existing Sheep Camp Trail over the San Francisco watershed lands and other county and area trails Crestview Drive to San Francisco Watershed Lands
This connection would allow for parking on Crestview and provide a more direct access to the San Francisco Watershed lands and Pulgas Ridge OS Preserve. There is an existing gate at this location.

Oakley/Devonshire to Crestview Drive and Vista Park
Links upper Devonshire Blvd to Crestview Dr at Vista Park (potential new trail) and near Normandy Drive (via existing unimproved trail)

9. 8.

10. Lands of Rosa Flores via Chesam to Proposed Devonshire Trail System
Currently a fire access road exists to access the open space easements existing in the Rosa Flores subdivision over large areas of Devonshire valley, providing another access into the lower end of the proposed system.

11. 2.

15. 13.

12.11. 10.

9. 8.

5. Top Priority

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Attachment: Map of Connections 4.10.03 Rev 2-22-11 (Update on San Carlos Trails) PREPARED BY:

SAN CARLOS HILLSIDE TRAILS PLAN

FOR THE CITY OF SAN CARLOS
THE PLANNING CENTER | DC&E
with WRA | 2M ASSOCIATES
ADOPTED MARCH 12, 2012

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

SAN CARLOS HILLSIDE TRAILS PLAN

FOR THE CITY OF SAN CARLOS
MARCH 12, 2012
In Association With: WRA
2M Associates
Prepared By:

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

T ABLE OF CONTENTS
i

1. I NTRODUCTION .................................................................................... 1-1

2. T RAIL ALIGNMENTS ................................................................................ 2-1

3. H ILLSIDE TRAIL GUIDELINES ..................................................................... 3-1

4. P ARKING PROGRAM ............................................................................... 4-1

Appendices
Appendix A, United States Forest Servi ce, Region 9, Standard for Pedestrian and CC Ski Trail Bridge

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

DRAFT SAN CARLOS HILLSIDE TRAILS PLAN

TABLE OF CONTENTS
ii

List of Figures
Figure 2-1 Proposed Alignments ................................................................ 2-2 Figure 2-2 Big Canyon Park ....................................................................... 2-4 Figure 2-3 Eaton Park ................................................................................. 2-7 Figure 2-4 Devonshire Canyon .................................................................. 2-8 Figure 3-1 Trail Terminology..................................................................... 3-4 Figure 3-2 Accessible Trails ........................................................................ 3-5 Figure 3-3 Hiking Trails ............................................................................. 3-6 Figure 3-4 Benching .................................................................................... 3-8 Figure 3-5 Bridged Crossings .................................................................... 3-10 Figure 3-6 Cribbed Steps .......................................................................... 3-13 Figure 3-7 Timber Steps ........................................................................... 3-14

List of Tables
Table 3-1 Summary of Hillside Trail Guidelines ...................................... 3-3 Table 3-2 Maximum Back Slopes .............................................................. 3-8 Table 4-1 Parking Allocation .................................................................... 4-1

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) 1 I NTRODUCTION
1-1

The City of San Carlos rises up from the San Francisco Bay to meet the coastal mountains, creating dynamic h illside environments with impressive bay views. San Carlos has preserved large portions of its hillsides as both parks and open spaces, and established trails that allow residents and visitors to explore and enjoy the natural environment. The City currently maintains

8.9 miles of recreational trails, includin g 3.7 miles of hillside trails, and has identified 15 potential trail connections to expand the trail system, many of which are hillside trails.

Trails are a valuable asset to San Carl os residents, and therefore a priority consideration for the City. Since 2003, an active Trails Connections Com- mittee has been working towards expanding the City's trail network. The San Carlos Potential Trails Connectio n Plan (Trails Connection Plan), an outcome of the Committee's work, was approved by the City Council on February 12, 2007. The 2008 Parks Mast er Plan recommends implementing the Trails Connection Plan as well as extending and improving trails in Big Canyon and Eaton Parks. In support of the Trails Connection Plan, the City has also adopted a trail standard of 1 m ile of hiking trail per 1,000 residents.

To meet this requirement, the City would need approximately 27 miles of trails (based on the city’s current population).

The San Carlos Hillside Trails Plan (H illside Trails Plan) helps San Carlos towards meeting its trail provision go als by identifying 1.62 miles of new trails within Big Canyon Park, Eaton Park and Devonshire Canyon. In addi- tion to identifying new trail alignments , the Hillside Trails Plan provides de- sign guidelines and construction protoc ols to ensure that hillside trails are designed and constructed so as to prov ide a safe and enjoyable experience for trail users and to avoid impacts to habitat and the watercourses. Lastly, the Hillside Trails Plan provides a parking program for the identified trails.

The Hillside Trails Plan provides sp ecific guidance for the development of identified alignments within, and will al so serve as the guiding document for the siting, design, and construction of future trails.

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

INTRODUCTION
1-2

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) 2 T RAIL ALIGNMENTS
2-1

Alignments for approximately 1.62 mile s of new trails in Big Canyon and Eaton Parks and Devonshire Canyon are described in this chapter and shown in Figure 2-1, Proposed Alignments. The new trails include several hiking trails and one accessible trail. Accessible tr ails are trails that are relatively flat (grades less than 8.33 percent) and that meet Americans wi th Disabilities Act (ADA) Accessibility Guidelines. Hiking trails are more challenging trails that have grades of up to 20 percent, narrower trail widths, and may require stairs and bridges.

The hiking trails identified in this Plan would require the construction of stairs and pedestrian bridges in several areas. Limited signage for orientation, wayfinding, and posting rules and regulations are recommended for existing and new trails. The overall setting of the trails is described below, followed by descriptions of the trail alignments according to location.

A. Setting
All of the areas for which trails have been identified are undeveloped land that is designated as either Park or Open Space by the San Carlos 2030 Gen- eral Plan. A large portion of the Plan Areas are dominated by coast live oak (Quercus agrifolia) woodland that transitions to California bay laurel ( Umbel- lularia californica) dominated forest along drainages and in basins. Addition- ally, annual grasslands are located on ridges and slopes and mixed northern chaparral is common on south and west facing slopes within the Plan Areas.

Several water courses with defined beds and banks are also within the Plan Area. These creeks appear to meet the de finition of Waters of the U.S. and may be considered jurisdictional by the California Department of Fish & Game (CDFG). All watercourses are linear and ephemeral drainages that appear to convey water only immediat ely after storm events or for up to a few months during the wet season. In general the creeks are perpendicular to the proposed trail alignments where the trail intersects drainages as they fol- low hillside contours.

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) Eaton Park
Big Canyon
Park
Vista
Park
Pulgas Ridge
Open Space
Preserve
Devonshire Canyon
FIGURE 2-1

PROPOSED ALIGNMENTS

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN
0 560 1,120 Feet
Existing Trail
Proposed Trails
Future Trails
City Boundary
City Park
Public Open Space
Private Open Space

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

TRAIL ALIGNMENTS
2-3

B. Big Canyon Park Trail Alignments
Big Canyon Park encompasses 16 acres of primarily steep and hilly terrain and is one of the City’s two open space areas. There are 1.35 miles of existing trails within the Park, no ne of which meet ADA requirements for accessibil- ity. The two additional trail alignmen ts identified by this Plan include a 1,875-foot-long (0.35-mile) hiking tra il and a 360-foot-long accessible trail.

These new alignments and their defining features are located in Figure 2-2, Big Canyon Park.

The additional hiking trail will connect with an existing trail at two points to create a loop trail within the park. This trail will include both relatively flat and steep grades, and will cross throug h forested and gr assland habitat, providing for a high quality user experi ence. The trail will cross several wa- tercourses with defined beds and banks. These watercourses are linear and ephemeral drainages that appear to convey water only during the season. The trail will also require stairs in at leas t three locations, three dry crossings, and one bridge crossing of a narrow drainage (less than 10 feet wide).

The accessible trail will connect the entr ance of Big Canyon Park to a rest area shaded by large oak trees. The re st area overlooks a natural drainage which enters stormwater infrastructure to the south. Although the rest area would be a short walk from Brittan Avenue, the space is tucked away and surrounded by natural scenery, and therefore will offer a unique nature expe- rience. The approximately 360-foot-long spine, or out-and-back, trail will meet ADA standards for accessibility an d create an accessible nature experi- ence.

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) hg
hg
hg
hg
hg
hg
hg
hg
Big Canyon
Park
Brittan Avenue
FIGURE 2-2

BIG CANYON PARK

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN
09 0 1 8 0 Feet
Trail Feature
hg Dry Crossing
hg Stream Crossing
hg Woodrat Nest
hg Stairs
Existing Trail
Primary On-Street Parking
Proposed Hiking Trail
Proposed Accessible Trail
City Park
Public Open Space

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

TRAIL ALIGNMENTS
2-5

C. Eaton Park Trail Alignments
Eaton Park is located to the southeast of Big Canyon Park, and is separated from Big Canyon Park by Brittan Avenue. Eaton Park encompasses 57.6 acres and is dominated by coast live oak/California bay woodland plant communities. Similar to Big Canyon Park, Eaton Park is comprised largely of steep hillsides. However, Eaton Park is located on a north facing slope and as a result is more forested than Big Canyon Park. The only improvements at Eaton Park are hiking trails and limited entry signage. In addition to formal trails, informal paths are well establi shed in several areas. The proposed hik- ing trail for Eaton Park follows an exis ting, well worn social trail. This alignment is shown in Figure 2-3, Eaton Park.

The trail additions for Eaton Park w ould include a 0.35-mile segment con- necting two existing trails, and a 0.15- mile segment connecting the first seg- ment to the Park boundary located approximately 40 feet from Tramanto Drive/Appian Way. The combined length of these segments is 0.5 miles.

The trails would traverse similar terrain as the proposed trails for Big Canyon Park, although a greater amount of the trails would be within canopy cover on the north facing slope of the hillside. The proposed alignment also crosses several linear and ephemeral watercourses with defined beds and banks. The trails would require steps in at least six locations, including connecting from the Park to Tramanto Drive. This connection will be constructed using steps and will stay as far south of the existing residences as possible. Pedestrian bridges over small creeks and erosion gu llies will also be necessary in four locations. Free span bridges would be used wherever feasible. As discussed in Chapter 3, Hillside Trail Guidelines, br idges that span greater than 15 feet may require permits and possible mitigation if in-channel piers are necessary.

D. Devonshire Canyon/Vista Park Trail Alignment
Devonshire Canyon is a privately owned designated open space area that sup- ports exemplary coastal sage scrub vegetation. The Devonshire Canyon Trail would be sited on the northeast facing slope of Devonshire Canyon. As

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

TRAIL ALIGNEMENTS
2-6

shown in Figure 2-4, Devonshire Canyon, the trail would be primarily within an existing trail easement. However, a short segment of the trail that con- nects from the easement to Vista Park is located within a parcel (Lot G) cur- rently owned by Crestview Estates Home Owners Association. The City intends to purchase this pa rcel in the future. The trail will be an approxi- mately 0.7-mile-long out-and-back hiking trail. The potential for the trail to be extended or for a loop trail to be created should be explored by the City in the future.

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hg
hg
hg
hg
hg
hg
hghg
hgBrittan Avenue
Eaton ParkTramanto Dr.

FIGURE 2-3

EATON PARK

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN
01 0 0 2 0 0 Feet
Existing Trail
Proposed Hiking Trail
Primary On-Street Parking
City Park
Public Open Space
Trail Feature
hg Stream Crossing
hg Stairs
Eaton Park

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) Crestview Drive
Devonshire Canyon
Vista
Park
FIGURE 2-4

DEVONSHIRE CANYON

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN
02 0 0 4 0 0 Feet
Preferred Hiking Trail
Trail Easement
Primary On-Street Parking
Lot G
City Park
Private Open Space

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) 3 H ILLSIDE TRAIL GUIDELINES
3-1

Hillside trails are a key recreational amenity for the City, but have the poten- tial to cause erosion and siltation and thereby lead to habitat and water quali- ty degradation. The purpose of these gu idelines is to provide clear design standards and construction protocols that en sure that San Carlos’s hillside trails provide a safe and enjoyable experience for trail users, as well as protec- tion for existing habitat, drainages, and water quality.

Existing trails should be maintained to meet these standards, and new trails should be designed and built according to the standards. The guidelines de- fined for San Carlos are based upon nati onal, regional and local standards and have been modified with consideration to San Carlos’s natural and cultural settings. The primary documents upon which the guidelines are based in- clude:
 United States Forest Service Trails Management Handbook (2008)  Forest Service Trail Accessibility Guidelines
 San Mateo County 2001 Trails Plan
 Trail Design Guidelines for Portland’s Park System (May, 2009)  California Disabled Accessibility Guidebook (CalDAG)
 Trail Planning for California Communities
1 This chapter classifies public trails wi thin San Carlos’s hillsides, provides de- sign guidelines for establishing these trails, and identifies construction proto- cols for trail development.

A. Trail Classification
There are two types of hillside trails wi thin the City of San Carlos: hiking trails and accessible trails. Hiking trails are single lane trails that traverse steep gradients, often requiring steps an d/or drainage crossings. Accessible trails are less challenging trails that require little grade change and meet Amer-

1 Bondurant, Julie and Laura Thompson, et al, 2009, Trail Planning for Cali- fornia Communities, Point Arena: Solano Press.

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-2

icans with Disabilities Act (ADA) requirements for accessibility. Due to con- straints related to the natural terrain, mo st of San Carlos’s hillside trails are hiking trails.

Characteristics of hillside trails and accessi ble trails are provided in Table 3-1, Summary of Hillside Trail Guidelines. Further deta il on the design and con- struction of these trail types is provided in Section B, Design Guidelines, be- low.

B. Design Guidelines
Guidelines for the development of new hillside trails are organized according to key topics of trail setting, basic design, drainage crossings and bridges, steep slopes, stairs, materials, and signage. The guidelines provid ed in this section are supplemented by Figures 3-2 thr ough 3-7, which provide specific stand- ards for the design of trail features.

1. Trail Setting
D.G.1.1 Trail alignments shall be sited and designed so as to retain nat- ural appearances and value of open space, to minimize impacts to natural drainages and existing vegetation, and to offer a range of enjoyable experiences. Techniques for achieving these goals are to:
 Avoid steep grades
 Follow contours
 Avoid sensitive habitat
 Frame views
 Traverse different habitat types
 Design for loop trails
 Vary the slope, length and challenge levels of trails  Establish trail connections (this is an ideal way to provide for both short and long hiking experiences)
 Avoid unstable or otherwise hazardous areas

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-3

T
ABLE 3-1 SUMMARY OF HILLSIDE TRAIL GUIDELINES
Trail Feature Hiking Trail Accessible Trail
Tread Width
24”- 30” (May be 36”-48” at
steep side slopes) 60”- 72”
Target Trail Grade 0%- 12% 0 – 4.99%
Out Slope (Cross Slope) 3%- 6% 2% or crowned
Maximum Interval for
5’x5’ Passing Area
400’
Not necessary if trail
is 60” wide or great-
er
Maximum Ramp Gradi-
ent
20%

8.33% (handrails
required for slopes
5% and greater)
Maximum Ramp Rise to
Landing
72” 48”
Maximum Ramp Run to
Landing
40’ 40’
Horizontal Clearance 1-2’ 2’
Vertical Clearance 7’ 8’

D.G.1.2 Trails shall be sited and designed to be sensitive to existing cul- tural resources.

D.G.1.3 Trails shall be sited a minimum of 50 feet from occupied dwell- ings, and larger setbacks should be established where possible.

In cases where this is not feas ible, potential noise and privacy impacts shall be minimized using landscaping, berms, fencing, or other barriers.

D.G.1.4 Trail alignments shall be evaluated by a professional biologist to identify potential impacts to sensitive habitats. Where it is

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-4

not feasible for sensitive habitat to be avoided, trails shall be realigned or mitigations measures such as trail closures or re- placement planting will be necessary.

D.G.1.5 Trails shall be setback 5 feet from the top of channel banks or from the edge of a riparian zone where possible.

2. Basic Trail Design
This section describes basic principles for designing and constructing both hiking and accessible trails. Figure 3- 1, below, defines key terminology used when constructing trailbeds. Specific st andards for constructing hiking and accessible trails is provided in Figure 3-2, Accessible Trails and Figure 3-3, Hiking Trails.

Figure 3-1 Trail Terminology

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) FIGURE 3-2

CITY OF SAN CARLOS

HILLSIDE TRAILS PLAN

ACCESSIBLE TRAILS
Source: Modified from Trail Design Guidelines for Portlands Park System, 2009 FIGURE 3-2

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

ACCESSIBLE TRAILS

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) FIGURE 3-3

HIKING TRAILS

CITY OF SAN CARLOS

HILLSIDE TRAILS PLAN
Source: Modified from Trail Design Guidelines for Portlands Park System, 2009

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-7

In steep terrain like that of San Carlos ’s hillsides, preventing erosion is the paramount consideration in trail design. Whether constructing hiking or accessible trails, the following standards shall be adhered to:

D.G.2.1 Trail alignments across open hillsid es and near ridgelines shall be sited to avoid permanent, noti ceably visible lines on the ex- isting landscape when viewed from afar.

D.G.2.2 Trail width shall be limited to the minimum requirement to minimize soil disturbance and potential impacts to existing vegetation and habitat
D.G.2.3 On trail grades greater than 5 percent, shallow ditches, water bars, crests and dips shall be us ed as necessary to divert water from trails.

D.G.2.4 Trail cuts shall be contoured to blend with natural side slopes.

D.G.2.5 Maximum cut for backslopes shall be determined based upon slope material. In most of Sa n Carlos’s hillside areas, back- slope shall be no steeper than 2 horizontal feet for every 1 foot vertical rise (2:1). See Table 3-2, Maximum Back Slopes.

D.G.2.6 The amount of benching used for a trailbed shall be deter- mined with consideration to sideslope. The steeper the side- slope, the greater the bench and smaller the fill slope. On side- slopes of 10 to 30 percent, cut and fill should be balanced. On sideslopes of 30 to 50 percent, a quarter bench should be creat- ed. This standard is illustrated in Figure 3-4.

D.G.2.7 Outslope shall be a minimum of 3 percent for hiking trails and 2 percent for Accessible Trails, unless surface is crowned.

D.G.2.8 Trail grade, or longitudinal sl ope, shall be less than half the slope of the sideslope. For i nstance, where the sideslope is 30 percent, trail grade shall be less than 15 percent.

D.G.2.9 Vertical clearance for trails shall be 7 feet and shoulder clear- ance shall be 1 to 2 feet for hiking trails and 2 feet for accessible trails.

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-8

TABLE 3-2 MAXIMUM BACK SLOPES
Material Horizontal: Vertical
Sandy Soil 3 to 4 :1
Moist Clay 2 to 3: 1
Loose, gravelly soil or humus 1.5 to 2: 1
Shale or Loose Rock 1:1
Source: Modified from Trail Design Guidelines for Portland’s Park System, May 2009.

Figure 3-4 Benching

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-9

D.G.2.10 Where feasible, the design of h illside trails shall recognize the intent of the Americans with Disabilities Act (ADA). The po- tential for trails to be accessible shall be evaluated on an indi- vidual basis for accessibility potential.

D.G.2.11 Resting places, such as benches or boulders, should be provided at regular intervals where feasible.

D.G.2.12 Barriers should be used where necessary to prevent vehicles from entering trail routes. Possible types of barriers include bollards, boulders or stiles.

D.G.2.13 Barriers may be employed to deter trail users from leaving the trail in areas where trail routes are adjacent to residential prop- erty, hazardous areas, or other ar eas that the public should not enter. Barriers may include vege tation, fallen trees or branch- es, or fences.

3. Drainage Crossings and Bridges
Many of the drainages in the San Carl os hills are ephemeral and only flow immediately following rain events. Th ese drainages do not hold water long and dry out very quickly. The appropriate construction of a free-span bridges with spans of 15 feet or less is describe d in Figure 3-5, Bridged Crossings.

Free-span bridges with spans 8 feet or greater may be built according to the United States Forest Service, Region 9, standard for pedestrian and cross- country ski bridges, with appropriate modifications for site conditions and current regional requirements (see Appe ndix A). Additional guidelines for drainage crossings are provided below.

D.G.3.1 Where the gradient permits, trails shall simply cross drainages at-grade (rather than bridging).

D.G.3.2 Where bridges are necessary due to water levels or the slope of the drainage, free-span bridges shall be used where possible.

D.G.3.3 Bridges shall be level where possible.

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) FIGURE 3-5

BRIDGED CROSSINGS

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN
Source: Modified from Trail Design Guidelines for Portlands Park System, 2009

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-11

D.G.3.1 Guard rails shall be used where the fall distance is 30 inches or greater. Guard rails and railings shall be 42 inches high.

D.G.3.2 Where steep drop-offs pose a significant safety concern, consid- er adding screening or other facing to vertical face of bridge for safety.

D.G.3.3 Footings of free-span bridges shall be on the upland side of the top of bank to avoid jurisdictional areas of the regulatory per- mitting agencies (U.S. Army Corps of Engineers (Corps), Cali- fornia Department of Fish and Game (CDFG), and the San
Francisco Regional Water Quality Control Board (RWQCB)).

D.G.3.4 When free-span bridges are not feasible due to required span or site conditions, non-free span bridges may be necessary. Such bridges shall be designed similar to the standard shown in Fig- ure 3-5, Bridged Crossings, but will require in-channel foot- ings. In-channel footings sh ould be placed above the actual flow line, or “ordinary high watermark” of the drainage.

4. Steep Slopes
Hiking trails on steep slopes have the potential to cause erosion and other problems if not properly designed and constructed.

D.G.4.1 Hiking trails should follow contou rs as much as possible, and should not exceed a 20 percent slope.

D.G.4.2 When trail grades are steeper than 12.5 percent for an extended length, switchbacks may be used. Switchbacks should be long and gradual rather than short and steep.

5. Stairs
The guidelines provided below for the design of stairs are supplemented by Figure 3-6, Cribbed Steps, and Figure 3-7, Timber Steps.

D.G.5.1 Stairs may be used when shorter vertical routes will have less of an impact on natural surroundings.

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-12

D.G.5.2 Stairs may not be used for accessible trails.

D.G.5.3 Stairs shall be constructed as either cribbed steps or timber steps. These steps are defined below and described in greater detail in Figures 3-6 and 3-7.
 Cribbed Steps. Cribbed steps are long lasting, stable steps that are excellent for straight stairways on consistent slopes.

Each step is “cribbed”, or bounded on the front and sides, to create uniform risers and treads (see Figure 3-6).
 Timber Steps. Most of the existing steps on hillside trails in San Carlos are timber steps. Timber steps have consistent risers created by timbers, yet the tread width varies and is constructed of native soil and/or gravel. This type of step is generally easier to construct than cribbed steps and can be fit into inconsistent slopes. Unlike cribbed steps, timber steps do not have any side support to prevent fill (soil or gravel) from slipping. To minimize the slipping of fill, large rocks or backfill of native soil can be placed along the sides of the timber steps (see Figure 3-7).

6. Materials
D.G.6.1 Hillside trails should be built using natural materials that blend with the natural surroundings and that minimize impacts to habitat and water quality. Trail beds shall be built using native soil and rock. Bridges and steps shall be built using wood and metal.

D.G.6.2 The City of San Carlos Building Department requires the use of pressure treated wood or redwood for deck framing, both of which have good longevity. FSC certified clear heart redwood, which is naturally resistant to fungus and decay, will not bring contaminants into the natural environment and therefore shall be used when possible.

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) FIGURE 3-2

CRIBBED STEPS
FIGURE 3-6

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN
Source: Modified from Trail Design Guidelines for Portlands Park System, 2009

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) FIGURE 3-7

TIMBER STEPS

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN
Source: Modified from Trail Design Guidelines for Portlands Park System, 2009

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-15

D.G.6.3 When it is not possible to use redwood, pressure treated wood may be used for all members except for railings, which will be in frequent contact with trail users. However, wood treated with Chromate Copper Arsenic (CCA) shall not be used, due to the hazards it poses to human health and the environment.

As a result of US EPA regulations, CCA treated wood is no longer available for residential use and therefore is not widely available. Appropriate alternative treatments to CCA include Alkaline Copper Quaternary (PT ACQ), Micronized Copper
Quaternay (PT MCQ), and Copper Azole (CA).

D.G.6.4 Recycled materials should be used where possible.

D.G.6.5 Bolt heads and other hardware should be recessed for safety.

7. Signage
D.G.7.1 Sign Design. Signage shall be designed to be similar to exist- ing signage, and compatible with the visual character and quali- ty of the park surroundings.

D.G.7.2 Trail Use and Orientation Signage. Signage providing in- formation on rules, regulatio ns, and wayfinding should be provided at all entry points to the trail system. Entry signs shall include a map of the trail network, with all trails named, and a list of pertinent Municipal Codes such as Chapter 12.12, Section 190 of the City’s Munici pal Code which prohibits bi- cycles and other vehicles from trails in “open space parks.” Entry signage shall also indicate whether the trail is classified as a hiking trail or accessible trail.

D.G.7.3 Directional Signage. Directional signs should be provided at all trail intersections to increase trail safety for users and en- hance the hiking experience.

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-16

D.G.7.4 Other Signage. Additional signage shou ld be limited to that which is necessary to ensure the safety of trail users and pro- tection of natural resources.

C. Trail Construction Protocols
The following protocols shall guide the planning, construction and mainte- nance of San Carlos’s hillside trails. These protocols are in tended to ensure the protection of biological, cultural, hydrologic resources, and air quality, and are grouped according to these topics.

1. General Protocols
GEN.1 Volunteers. Volunteer trail bu ilders and all other individuals handling PT ACQ wood shall use gloves, masks and protective eye wear.

GEN.2 Volunteer Supervision. A qualif ied supervisor shall be present at all volunteer events to ensu re quality construction, resource protection, and volunteer safety.

GEN.3 Construction Machinery. Trails shall be constructed by hand or with small machinery, such as chainsaws, where feasible to minimize site disturbance and potential noise impacts to sur- rounding areas.

GEN.4 Construction site. Visible evidence of trail construction shall be limited to the trail clearing area.

GEN.5 Closure. In the event of a wild land fire, San Carlos’s hillside trails shall be closed and access restricted by emergency service personnel.

2. Biological Resources

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SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-17

BIO.1 The following measures will ensu re that potential impacts to special status plant species are less-than-significant:

BIO-1a Conduct preconstruction special status plant surveys along the Devonshire Canyon trail corridor and for
any future corridors where th ere is potential for spe- cial status plant species to occur.

BIO-1b If special status plant species are found, the trail alignment shall be altered to avoid impacting the
plants and a suitable buffer (species-dependent and to
be determined by a biologist) established to protect
the plants during construction.

BIO-1c If direct impacts are unavoidable, the following com- pensatory measures shall be implemented:
 Perennial special status species with potential to be directly impacted by the trail alignment shall be
transplanted to a nearby su itable location. The re-
cipient location shall be selected by a qualified bot-
anist and the transplanting shall be overseen by a
qualified botanist.
 Annual special status species with potential to be
directly impacted by the trail alignment shall have
seed collected and planted at a nearby suitable loca-
tion. The planting location shall be selected by a
botanist and the planting shall be overseen by a
botanist.
 A special status plant species protection plan shall
be prepared that addresses short term (three to five
years) monitoring and care of the affected individu-
als. The plan shall include monitoring require-
ments, success criteria, and a maintenance and
weeding program.

BIO.2 The following measures shall be implemented to avoid impacts to breeding birds:

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-18

BIO-2a The clearing of vegetati on and the initiation of and construction using power tools or machinery shall be
done in the non-breeding season from September
through January.

BIO-2b If construction activities cannot be done in the non- breeding season, a qualified biologist shall perform
pre-construction breeding bird surveys within 14
days of the onset of clearing of vegetation or con-
struction requiring power tools or machinery. The
survey area shall encompass all areas where this type
of disruptive work is proposed during the breeding
season.

BIO-2c If nesting birds are discovered in the vicinity of the above-mentioned activities, a buffer area around the
nest shall be established until the nest is vacated. The size of the buffer shall be dependent on the habitat,
level of disturbance and the particular species of nest- ing bird.

BIO.3 The following measures shall be implemented in the event that trail construction would require removing trees or snags to avoid take of roosting or special status bats:

BIO-3a Potential roost habitat (trees with cavities and snags) may be removed outside of the maternity roosting
season, September through March, without perform-
ing preconstruction bat surveys. Preconstruction
surveys for bats shall take place during the maternity
roosting season (April 1 through August 31) if trees
with cavities or snags are to be removed during this
time frame.

BIO-3b If special status bat species are detected during sur- veys, species and roost specific mitigation measures
shall be developed by a qualified biologist. Such
measures may include postponing removal of trees or

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-19

snags until the end of the maternity roosting season
or construction of species appropriate roosting habi-
tat within, or adjacent to, the project area. Consulta- tion with CDFG may be warranted to determine ap-
propriate mitigation measures if roosts are disturbed
or destroyed. If no potential bat roost habitat is pro- posed for removal, bat roost surveys are not neces-
sary.

BIO.4 The following measures shall be implemented to reduce im- pacts to San Francisco dusky-footed woodrat to a less than sig- nificant level:

BIO-4a San Francisco dusky-footed woodrat stick houses
shall be avoided.

BIO-4b If avoidance is not feasible, the houses shall be dis- mantled by hand under the supervision of a biologist.

BIO-4c If young are encountered in the nest during the dis- mantling process, the material shall be placed back
on the house and the house should remain unmolest-
ed for two to three weeks in order to give the young
enough time to mature and leave the house. After
two to three weeks, the nest dismantling process may
begin again.

BIO-4d Dismantled nest material shall be moved to suitable adjacent areas that will not be impacted.

BIO.5 The following measures shall be implemented to reduce im- pacts to riparian habitat and other sensitive natural communi- ties to a less-than-significant level:

BIO-5a Removal or alteration of riparian trees greater than 4 inches in diameter at breast height along creeks in
the project areas shall be avoided if at all possible.

BIO-5b If such trees cannot be avoided, they shall be prefer- entially trimmed, and comp letely removed only as a

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-20

last resort. If removal of riparian trees is unavoida- ble, a 1602 Agreement may be necessary from the
CDFG. The agreement shall include mitigation
measures for impacts to riparian habitat which may
include habitat restoration such as tree replacement.

BIO.6 The following measures shall be implemented to avoid impacts to creeks in the project area:

BIO-6a At-grade “dry-crossings” of several of the creeks are proposed. Since many of the drainages are ephemeral
and only flow immediately following rain events,
they do not hold water for a long duration and dry
out very quickly. Dry crossings of these creeks shall
not result in any impacts to the creek banks and no
fill shall be placed within the creek channel.

BIO-6b Free-span bridges shall be used to cross watercourses where dry-crossings are not appropriate, where feasi-
ble. Footings of free-span bridges shall be on the up- land side of the top of bank to avoid jurisdictional
areas of the regulatory permitting agencies (Corps,
CDFG, and the RWQCB).

BIO-6c Bridge construction or other trail work adjacent to creek corridors shall be conducted during the dry
season (April 15 through October 15). If water is
flowing within any of the channels during construc-
tion, best management practices (BMP) such as weed
seed free straw wattle, silt fencing, etc. shall be placed between the watercourse and ground disturbance ar-
eas to protect water quality.

BIO-6d Native species seeding/ planting and invasive species management in disturbed, exposed soils should be
conducted immediately following bridge construc-
tion.

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-21

BIO-6e In-channel footings, when necessary for bridges that are not free-span, shall be above the ordinary high
watermark. A jurisdictional wetland delineation
shall be conducted to determine the extent of juris-
diction of the Corps, RWQCB, and CDFG prior to
construction. Incursion into the jurisdictional areas
of any of these agencies will likely require permits
from those agencies. Pe rmits may include a 1602
Streambed Alteration Agreement permit from the
CDFG, and a Waste Discharge Requirement (WDR)
from the SFRWQCB. If footings must be placed
within the “ordinary high watermark” of the drain-
age, a Section 404 Permit from the Corps of Engi-
neers and a 401 Water Quality Certification would
be necessary; and a Delineation of Waters of the U.S.
(wetland delineation) would need to be conducted to
map the ordinary high watermark of the creeks in
question.

BIO-6f Permits shall be obtained as necessary for the con- struction of bridges, and projects shall conform with
all mitigation measures included in permits.

BIO.7 The following measures are recommended to avoid impacts to sensitive vegetation, habitat, and heritage trees:

BIO-7a Adherence to the requirements set forth in Chapter

12.20 of the San Carlos Municipal Code (SCMC)
shall limit impacts to protected trees in the project
area. This includes avoidance of trees greater than 36 inches in circumference, measured 48 inches from
natural grade. The ground within the drip line of
such trees shall not be cut, filled, compacted or paved without having first obtained permission of the Di-
rector. The City is not required to obtain a permit
for removal of trees on public property.

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CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-22

BIO-7b Trail alignments with potential impacts to oak sa- vanna/woodland habitat shall avoid, minimize, or
compensate for the loss of oak savanna/woodland
habitat. Avoidance is the preferred measure where
feasible. If it is deemed that an impact is unavoida-
ble, minimization of direct and indirect impacts or
compensation through habitat restoration, preserva-
tion, or enhancement may be required.

BIO.8 Existing vegetation shall only be removed as necessary to ac- commodate trail clearing width.

3. Cultural Resources
Historical resources within the City ar e limited to several known archeologi- cal sites located near the banks of Cordilleras and Pulgas Creeks and two properties that are listed on the National Register of Historic Places. 2 There
are no known cultural re sources located within Big Canyon, Eaton or Vista Parks, or in Devonshire Canyon. Howe ver, in the event that cultural arti- facts are encountered during trail const ruction, the following protocols shall be followed.

CULT.1 Archaeological Resources. During construction, construction personnel shall look out for buried archaeological resources. If an archaeological site(s) is encountered during grading or other soil disturbing activities, the site (s) will be recorded by a quali- fied archaeologist, including the ex tent of the site boundaries.

The trail alignment(s) and/or asso ciated features shall be relocat- ed away from the archaeological site(s), unless the site(s) are evaluated and determined not to be eligible for listing on the California Register of Historical Resources. The archaeologist shall determine the required distance from the resource. If the eligible site(s) cannot be avoided, the proposed trail shall be de- signed with protective elements that would provide for trail use

2 San Carlos 2030 General Plan

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CITY OF SAN CARLOS

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HILLSIDE TRAIL GUIDELINES
3-23

with minimal affect on the archeological site(s). These protec- tive elements may include fencing, or placement of the trail on a bridge, boardwalk or earthen berm. Prior to construction, data recovery and testing shall be conducted as needed. A final re- port, including the results of the surveys and evaluations, shall be provided to the State Historic Preservation Officer for re- view.

CULT.2 Paleontological Resources. If paleontological resources are encountered during grading or other soil disturbing activities, construction shall be halted within 50 feet of the site and a quali- fied paleontologist will be contacted to investigate the find with- in 24 hours. If the find is deemed to be significant, a complete paleontological survey and removal of paleontological finds shall be warranted prior to resuming construction activities in the ar- ea.

CULT.3 Human Remains. If human remains are encountered, work shall halt within 50 feet of the find and the County Coroner shall be notified immediately. An archaeologist will also be con- tacted to evaluate the find. In accordance with subdivision (c) of Section 7050.5 of the Californi a Health and Safety Code (CHSC), if the Coroner recognizes the human remains to be of Native American origin or has reason to believe they are, the Coroner must notify the Native American Heritage Commis- sion within 24 hours of this identification. Subsequently, pursu- ant to Section 5097.98 of the Pub lic Resources Code, the Native American Heritage Commission will identify a Native American Most Likely Descendent to inspect the site and provide recom- mendations for the proper treatment of the remains and associ- ated grave goods.

4. Hydrologic Resources
HYDRO.1 Bridges. Crossing structures shall be designed to allow for pas- sage of high flows.

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SAN CARLOS HILLSIDE TRAILS PLAN

HILLSIDE TRAIL GUIDELINES
3-24

HYDRO.2 Best Management Practices. Implementation of the project shall follow Construction Best Management Practices (BMPs) recommended by City of San Carlos Building Division and/or other relevant agencies, to preven t erosion during construction.

Such BMPs include the following:
 Limit construction activities to the dry season. All bridges shall be constructed during the dry season (April 15 through October 15).
 Stabilize construction sites, including entrances and exits.  If water is flowing within any of the channels during con- struction, weed-seed-free straw wattles or compost fiber roles shall be placed between the watercourse and ground disturbance areas to protect exposed slopes.
 Following construction, disturbed areas, including stream- banks, shall be stabilized with native plant materials, hy- droseeding, or similar measures as needed to prevent ero- sion.

HYDRO.3 Balanced Cut and Fill. Cut and fill shall be balanced when possible. When this is not possible, excess soil shall be deposited on site as shown in Figures 3-2 and 3-3.

HYDRO.4 NPDES Permit. Consistent with the requirements of the statewide water quality standards, if a specific trail project will result in greater than one acre of ground disturbance, the project must obtain a NPDES permit ( Construction General Permit).

This includes preparing and implementing a Storm Water Pollu- tion Prevention Plan (SWPPP) designed to reduce potential ad- verse impacts to surface water quality through the project con- struction period.
 The SWPPP shall be prepared by a Qualified SWPPP De-
veloper.
 The SWPPP shall include the minimum BMPs required in
Attachment D for Risk Level 2 dischargers, or Attachment E for Risk Level 3 dischargers (as applicable, based on final

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HILLSIDE TRAIL GUIDELINES
3-25

determination of the project’s Risk Level status [to be de- termined as part of the Notice of Intent for coverage under the Construction General Permit]).
 The SWPPP shall also include the erosion and sediment con- trol and construction BMPs required by the City of San
Carlos. BMP implementation shall be consistent with the BMP requirements in the most recent version of the Cali- fornia Stormwater Quality As sociation Stormwater Best
Management Practice Handbook for Construction or the
Caltrans Storm Water Quality Handbook Construction Site BMPs Manual.

5. Air Quality
AIR.1 Dust Control. The following dust control practices shall be followed during the construction phase of the project:
 Cover stockpiles of debris, soil, sand or other materials that can be blown by the wind.
 Cover open truck beds delivering soil, sand, and other loose materials to the Plan areas.

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HILLSIDE TRAIL GUIDELINES
3-26

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) 4 P ARKING PROGRAM

4-1

This chapter identifies parking programs for the San Carlos hillside trails lo- cated within or adjacent to Big Canyon, Eaton, and Vista Parks.

San Carlos hillside trails identified in this Plan will be accessed from Big Can- yon, Eaton, and Vista Parks, as well as from Tramanto Drive. Although many park visitors currently access, an d will continue to access, these parks by foot, some visitors require vehicular parking. It is anticipated that new and expanded trails will have an inconsequential increase on parking demand, and that existing on-street parking n ear park entrances and along Tramanto Dive will accommodate any increase in demand. Figures 2-2, 2-3, and 2-5, provided in Chapter 2, identify existing on-street parking that shall be utilized to access the trail connections. Table 4- 1 identifies parking capacity at each access area.

T
ABLE 4-1 PARKING ALLOCATION
Site
Identified
Spaces Location
Additional Spaces
and Location
Big Canyon Park
at Brittan Avenue 5
Park frontage along
east side of Brittan
Avenue
Additional parking
provided in front of
residential properties along
Brittan Avenue
Eaton Park
at Brittan Avenue 2
North of Park
entrance along west
side of Brittan
Avenue
Additional
parking
provided in front of
residential properties along
Brittan Avenue
Eaton Park
at Tramanto Drive 5
North side of
Tramanto Drive in
proximity to
neighborhood
entrance
Additional parking could be
provided along both sides of
Tramanto Drive and
Appian Court
Vista Park at
Crestview Drive 5
Inset parallel
parking along Park
frontage
20 additional on-street
spaces are available on the
south side of Crestview
Drive along Park frontage

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

CITY OF SAN CARLOS

SAN CARLOS HILLSIDE TRAILS PLAN

PARKING PROGRAM

4-2

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails)

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Attachment: San Carlos Hillside Trails Plan -Final Version (Update on San Carlos Trails) Map of Proposed New Trail at Big Canyon Park
(Orange dotted lines)

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Attachment: Map of Trails at Big Canyon Park (Update on San Carlos Trails)

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Attachment: Map of Trails at Eaton Park (Update on San Carlos Trails)

CITY COUNCIL

STAFF REPORT

MEETING DATE: June 13, 2022

ITEM TITLE: Consideration of Introducing an Ordinance Amending Municipal Code Chapter 18 to Adjust the City Density Bonus, Inclusionary Housing Requirements, Affordability Periods, Parking for Affo rdable Units, and Making Other Conforming Amendments.

RECOMMENDATION:

Staff recommends that the City Council i ntroduce an ordinance to amend Municipal Code Chapter 18.16 “Affordable Housing Programs ” and Chapter 18.17 “Affordable Housing Incentives” to: (1) adjust the City density bonus, (2) increase inclusionary housing requirements for ownership units, (3) extend affordability periods in perpetuity, (4) maintain affordable parking for below market rate units, and (5) find such actions are exempt from the California Environmental Quality Act.

FISCAL IMPLICATIONS:

None. Any outside consulting costs related to this ordinance were funded from the existing budget.

BACKGROUND:

To encourage the development of affordable housing throughout the City, San Carlos adopted Chapter 18.16 “Affordable Housing Programs ” and Chapter 18.17 “Affordable Housing Incentives” in Title 18 “Zoning”, of the San Carlos Municipal Code. Chapter 18.16 is an "inclusionary housing" ordinance, which requires a specified share of new residential construction be affordable at below market rate ( “BMR”) to households at lower- and moderate- income levels.

One of the City’s strategic goals is to actively encourage and support the creation of housing to provide a safe, inclusive, divers e, and affordable housing supply by facilitating development of housing for all income levels. Objective #1 under this goal is to increase the number of BMR housing units to meet local and regional housing requirements. The Council directed staff to pursue this objective by updating the City’s BMR Ordinance.

The City subsequently retained Economic & Planning Systems, Inc. (EPS) to assist with reviewing San Carlos’ inclusionary housing requirements and develop recommendations on how to increase the producti on of BMR housing in the community. These recommendations were then shared in a draft memorandum along with the associated findings and analyses. City

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2 staff and EPS thereafter met on two occasions with City Council Housing Subcommittee Members John Dugan a nd Ron Collins to refine these recommendations to what is being shared in this staff report.

On November 15, 2021, staff held a study session with the Planning Commission to share these proposed recommendations. During this study session, the Planning Com mission voiced its support for the proposed changes including higher inclusionary requirements for ownership units, extending affordability periods to run in perpetuity, addressing issues surrounding unbundled parking, and the proposed City density bonus.

On February 28, 2022, staff held a study session with the City Council to further discuss these recommendations. During this study session the City Council voiced its support for some of the proposed changes including higher inclusionary requirements for ownership units, extending affordability periods to run in perpetuity, and addressing issues surrounding unbundled parking.

The City Council did not reach a consensus on amendments to Chapter 18.17 “Affordable Housing Incentives ” and the City density bonus, with some Councilmembers preferring to address density concerns as part of the General Plan update.

Additionally, the City Council asked staff to further consider the following items:

1) Review options for setting a threshold based on occupiable square feet rather the number of units.
2) Find ways to incentivize developers to include affordable housing units in their projects. 3) Review the Municipal Code to confirm regulations regarding the number of mandatory BMR units and their locations within the developm ent can't be manipulated and ensure enforcement.
4) Consider actions on how to increase extremely low income housing, such as purchasing low income units to convert them to extremely low.

The Planning Commission, at its May 16, 2022 meeting, adopted a Resolut ion recommending that the City Council introduce this ordinance to amend Municipal Code Chapter 18. The Planning Commission’s recommendation includes all of the aforementioned changes as well as the amendments to the City density bonus. The Planning Commis sion also recommended that the City Council consider refining the City density bonus through the creation of an Affordable Housing Overlay Zone at a later date . Affordable Housing Overlay Zones are geographically specific areas that include incentives such as enhanced density bonuses, impact fee waivers, and reduced parking requirements for projects that include a predetermined amount of affordable housing.

ANALYSIS:

Current Requirements

The City currently requires all residential developments of seven or more units to set aside 15% of their units as BMR housing. This 15% is then broken down into different income levels that vary for ownership and rental developments and can be seen in the table below:

Existing Requirements
Ownership Projects: 10% Moderate Income
5% Low Income

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3 Rental Projects: 10% Very Low Income
5% Low Income

Developers are not allowed to pay a fee in lieu of providing the required units, except for small projects under seven units or fractional units (e.g., if a 28 -unit project should provide 4.2 BMR units, the developer would provide four units and the fee could be charged for the 0.2 units.)

Overview of Comparable Jurisdictions

In considering potential changes to the City’s inclusionary requirements, it is helpful to understand how these policies are being implemented in comparable jurisdictions. To provide this context, EPS surveyed cities in San Mateo County and Santa Clara County, as well as the City of Fremont in Alameda County. This survey found that San Carlos’ 15% overall inclusionary requirement is in line with the average requirements in other cities. However, when the requirements are further segmented by income levels, some divergence was discovered.

The City’s requirement for ownership developments of 10% moderate income and 5% low income is in line with neighboring jurisdictions. However, the City’s requirement for rental developments of 10% very low income and 5% low income was found to be more aggressive than most other cities. The only other cities to require 10% or more very low income units did so as an alternative to 20% low income units or for developments on properties of more than five acres.

Recommended Changes to Inclusionary Levels

With the above considerations in mind , staff and EPS set out to ana lyze potential changes to the City’s inclusionary requirements. EPS prepared financial pro formas reflecting the expected costs of new development, and compared those costs to the revenues that could be generated from the projects given various mixes of ma rket-rate and affordable housing. These pro formas were then analyzed to find a scenario that resulted in more affordable units and/or units at deeper income levels , while not inhibiting a developer’s return on investment to the point that such projects would no longer be feasible.

Ownership Projects:

On the ownership side, this research showed that there is room to both increase the proportion of units required and lower the income level required. As a result, the Planning Commission has recommended that the inclusionary requirement for ownership developments be changed to 20% at low income (70% AMI). This is a change from the current requirement of 10% at moderate income plus 5% at low income.

Staff has heard from the development community that this change may discourage projects that do not seek to utilize the State density bonus. This would likely include projects that focus on larger units at lower overall densities.

Rental Projects:

On the rental side, it was discovered that developments are already facing feasibility challenges with the current requirement of 10% at very low income and 5% low income. Rental developments are generally considered feasible when they are projected to achieve greater

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4 than a 5% yield on cost. Under the City’s current inc lusionary requirements a medium sized rental development is estimated to achieve a 4.9% yield on cost.

In an effort to determine the impact the City’s inclusionary requirement is having on rental developments, EPS also ran a scenario under which no requi rement existed and a developer was not required to build any affordable units. Under this scenario the estimated yield on cost increased to 5.2%, suggesting that the City’s inclusionary requirement plays a smaller impact on project feasibility than broader market conditions such as land, labor, and construction costs.

The Planning Commission has recommended that the only change that should be made to the rental side of the inclusionary ordinance is to add an additional option for developers to construct 1 5% of units at the very low income level. A project that met this alternative inclusionary standard would be entitled to a 50% density bonus under State law, whereas a project that meets the City’s current inclusionary standard would only be entitled to a 32.5% bonus, and EPS’s analysis as well as observed developer preferences demonstrate the significant value of density bonus units. Technically this would already be allowed under the City’s current requirements, but highlighting the 15% at very low income option will help draw attention to the maximum State Density Bonus of 50% that projects are entitled to pursue.

Density Bonus Considerations.

The above inclusionary requirements are made much more feasible by the existence of California’s State Density Bonus. The State Density Bonus Law mandates that cities provide an increase in the maximum density allowed by local zoning regulations for developments that include certain amounts of affordable housing units. For example, under the Planning Commission’s r ecommended inclusionary level for ownership units of 20% at low income, a project would be entitled to a 35% density bonus, greatly increasing the profitability of the project.

However, even with the State Density Bonus many rental developments in San Car los face an upward battle in terms of feasibility. For this reason the Planning Commission has recommended that the Council consider an improved City Density Bonus, specifically for rental developments.

San Carlos currently implements a City Density Bonu s Program which grants one additional market-rate unit for every unit at low income or lower that is included in a project. This City Density Bonus is generally less favorable than the State Bonus and as a result is rarely utilized.

However, the City could consider increasing this City Density Bonus for rental units to help improve their feasibility and produce more affordable units.

The Planning Commission has recommended a fixed bonus rate that exceeds the highest rates provided by the State, equivalent to 4:1 for each very low income unit and 2:1 for each low income unit, and allowing all of the affordable base units to trigger bonus units rather than requiring the developer to select only one income level to apply. Under this program, a 100 -unit rental project meeting the City’s current inclusionary ordinance would qualify for 50 bonus units as seen in the table below:

100 Unit Rental
Project State Density Bonus Proposed City Density Bonus

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5 Base Units: 100 100
BMR Units: 10 Very Low Income
5 Low Income
10 Very Low Income
5 Low Income
Bonus Units: 33 50
Total Units: 133 150

Developers that utilized this proposed City Density Bonus would still be able to use certain provisions of the State Density Bonus. As a result, some may choose to utilize the City Bonus to obtain additional units and the State Bonus for concessions on height, parking, or other areas.

Additional Below Market Rate Ordinance Changes.

In addition to the above changes to the inclusionary portion of the City’s BMR Ordinance, the following changes have also been recommended by the Planning Commission:

1) Decrease the threshold requiring that a BMR unit be built for ownership units from 7 to 5 units. This would align with the increased requirement that 20% of units be designated low income. The threshold would remain 7 units for rental developments. 2) Change affordability periods to run in perpetuity. The City’s Municipal Code currently states that the affordability period shall be not less than 45 years for ownership units and not less than 55 years for rental units.
3) Ensure that BMR units do not lose parking due to unbundled parking strategies. a) Rental Units: Amend the definition of “rent” in the Municipal Code to include all fees paid for parking and require that BMR units be offered ame nities, such as parking, equivalent to those of market rate units.
b) Ownership Units: Require that BMR units include parking spaces at a ratio equivalent to that of market rate units. In developments that include unbundled parking spaces, parking spaces must be included in the affordable sale price for BMR units at a ratio equivalent to what the distribution of parking spaces among all units would have been were the spaces not unbundled.

Summary of Proposed Changes

Inclusionary Requirements
Existing Requirements Recommended Changes
Ownership
Projects:
10% Moderate Income
5% Low Income
20% Low Income
Rental
Projects:
10% Very Low Income
5% Low Income
Present Policy; AND
15% Very Low Income Alternative

BMR Unit Construction Threshold
Decrease the threshol d requiring a BMR unit be built for ownership units from 7 to 5 units.

Threshold would remain 7 units for rental developments.

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6 Affordability Periods
Change affordability periods to run in perpetuity.

Restrictions on Unbundled Parking
Amend Municipal Cod e to ensure that BMR units do not lose access to parking as a result of unbundled parking strategies.

City Density Bonus (Add on option)
Allow rental projects to add bonus market rate units at a ratio of 4:1 for each very low income unit and 2:1 for each low income unit that is included.

Additional Council Requests

As mentioned previously, during their Study Session the Council asked staff to undertake further analysis on a series of additional items. These items, along with staff’s analysis and the Planning Commission’s recommendation, can be found below:

Review options to setting a threshold based on occupiable square feet rather the number of units

As an alternative to tying the number of BMR units to a percentage of the overall unit count, the City could instead tie the percentage to the amount of occupiable square feet in a project. While City staff are not aware of any other cities taking this approach it does appear to be legally viable.

The Planning Commission has recommended that concerns over the size of BMR units be addressed by making the below edits to Section 18.16.050.A of the ordinance:

“Below market rate units may must in aggregate be no smaller in aggregate average size than market rate units in the same residential development so lon g as and the number of bedrooms in below market rate units shall be in the same proportion as in the total number of units in the residential development.”

Find ways to incentivize developers to include affordable housing units in their projects

Staff, as well as the City’s consultant team , have spoken with a number of developers to gather their feedback on what incentives would lead them to develop more affordable housing.

Consistently the greatest incentive referenced was additional density and height. Developers also referenced concessions on parking and setback requirements as incentives to developing more a ffordable housing. However, these options are already available through the State Density Bonus law. An apartment development setting aside 5% of i ts units as very low income would automatically be entitled to one such concession. A project could receive two concessions if the amount of very low income units was increased to 10% or three concessions if the amount was increased to 15%.

The Planning C ommission has recommended addressing feasibility concerns in the near term by enhancing the City Density Bonus. Long term, the Planning Commission has recommend

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7 that the City develop an Affordable Housing Overlay Zone that could include a suite of incentives for affordable housing projects that are tied to specific geographic areas.

Review the Municipal Code to confirm the regulations regarding the number of mandatory BMR units and their locations within the development can't be manipulated and ensure enforcement

The following edits to Section 18.16.050.A have been recommended by the Planning Commission to ensure that the locations of BMR units within a development cannot be manipulated:

“Except as otherwise provided in this chapter, and subject to the ap proval of the Administrator, below market rate units shall be evenly dispersed by floor and general location throughout a residential development and, consistent with Health & Safety Code Section 17929, may not be isolated to a specific floor or area on a specific floor and must have the same access to the common entrances to a structure as the market -rate units.”

Consider actions on how to increase extremely low income housing, such as purchasing low income units to convert them

Historically, the City ha s obtained extremely low income units through partnerships with non - profit developers to develop 100% affordable housing projects. This has been the case at the 817 Walnut project and is the intent for the 1232 Cherry project, both of which contain a significant portion of extremely low income units. These projects also include on site management and supportive services for all residents.

The Council could consider adopting a complementary strategy of purchasing very low, low, and moderate income units and converting them to extremely low income units. The City has purchased below market rate units in the past in order to either preserve their affordability or set them aside to relocate tenants residing at projects slated for redevelopment. Units purchased in this manner can be converted to lower income levels. These converted units cannot count towards the City’s RHNA allocation as they are already deed restricted. Market rate units that are converted to below market rate units can count towards the City’s RHNA allocation, but only up to 25% of the City’s total allocation.

Environmental Determination

Pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15378, the proposed ordinance does not constitute a “project” within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. The proposed ordinance also is ex empt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) since there would be no possibility of a significant effect on the environment, in that its provisions requiring the provision of affordable housing would not have any effect on the physical environment.

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8 ALTERNATIVES:

The alternatives available to the City Council include:

1. Introduce an Ordinance amending Municipal Code Chapter 18 to adjust the City Density Bonus, inclusionary housing requirements, affordability periods, parki ng for affordable units, and make other conforming amendments, and to find such actions are exempt from the California Environmental Quality Act; or

2. Do not introduce the proposed Ordinance; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Al Savay, AICP
Community Development Director

Adam Aronson, Economic Development
and Housing Manager

Approved for submission by:

_________________________
Jeff Maltbie, City Manager

ATTACHMENT(S):

1. Ordinance with Exhibit A - Proposed Changes (Red-Lined)

2. Proposed Chapter 18 Amendments (Clean Version)

3. PC Resolution - Affordable Housing Programs and Incentives UNSIGNED

4. Consultant Study Memo - Affordable Housing Programs and Incentives

5. BMR Public Hearing Notice Proof of Publication

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1 ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS AMENDING MUNICIPAL CODE CHAPTER 18 TO ADJUST THE CITY DENSITY BONUS,

INCLUSIONARY HOUSING REQUIREMENTS, AFFORDABILITY PERIODS, PARKING FOR AFFORDABLE UNITS, AND MAKING OTHER CONFORMING AMENDMENTS.

RECITALS

WHEREAS, California Government Code Section 65580(d) states that all cities have a responsibility to use the powers vested in them to facilitate the improvement and development of housing and to make adequate provision for the housing needs of all economic segments of the community; and

WHEREAS, pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15378, the proposed project does not constitute a “project” within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. The proposed ordinance also is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) since there would be no possibility of a significant effect on the environment, in that its provisions requiring the provision of affordable housing would not have any effect on the physical environment; and

WHEREAS, at a duly noticed public hearing held on May 16, 2022 , the Pl anning Commission considered amendments to Chapter 18 of the Municipal Code; and

WHEREAS, by Resolution PC2022-07, adopted on May 16 , 20 22, the Planning Commission recommended the City Council adopt the proposed amendments; and

WHEREAS, the City Council of the City of San Carlos held a duly noticed public hearing on June 13, 2022 to consider the proposed amendments to Chapter 18 of the Municipal Code ; and

WHEREAS, the City Council has duly considered all evidence, including testimony and the evaluation and recommendations by staff, presented at said hearings.

NOW, THEREFORE BE IT ORDAINED by the City Council of the City of San Carlos as follows:

SECTION 1: The City Council of the City of San Carlos hereby finds and declares that the forgoing recitals are true and correct and are incorporated into this Ordinance as though fully set forth herein. The City Council further finds as follows:

1. The ordinance amendment is consistent with the General Plan.

Rental and owner-occupied housing in the City of San Carlos has become steadily more expensive. In recent years housing costs have escalated sharply, increasing faster than incomes for many groups in the c ommunity. As a result, there is a severe shortage of adequate, affordable housing for extremely low, very low, lower, and moderate income households. Requiring that new market rate rental and owner -occupied housing provide

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 2 a percentage of total units for lower- and moderate income households will increase the supply of such housing options. By increasing the supply of housing affordable to lower and moderate income households, the amendments will help implement Policy HOU -1.2 of the General Plan's Housing Element, which calls for the City to minimize potential displacement of lower-income households from the City due to increasing housing prices and rents.

General Plan Housing Element Policy HOU -5.5 calls for the City to p rovide an adequate number of affordable housing units to extremely low, very low and low -income households based on the City's share of the regional housing needs. These amendments will help increase the supply of affordable housing to lower-income households, consistent with the General Plan.

Therefore, as stated in the General Plan's Housing Element, it is the City's policy to encourage the provision of a wide range of housing by location, type of unit and price to meet the City's share of the regional housing needs. The City can achieve its goals of providing more affordable housing and achieving an economically balanced community only if part of the new housing built in the City is affordable to households with limited incomes, which these amendments would require. Accordingly, the ordinance amendment is consistent with the General Plan.

2. The ordinance amendment is consistent with the purpose of this title to promote the growth of the City in an orderly manner and to promote and protect the public health, safety, peace, comfort and general welfare.

As described above, the amendments will advance the City's interest in providing additional housing affordable to all income levels and dispersed throughout the City because affordable units required by the ordinance codified in this chapter, including both rental and ownership units, must b e affordable to either very low and lower-income households. Requiring affordable units within new residential development enhances the public welfare by fostering an adequate supply of housin g for persons at all economic levels and maintaining both economic diversity and geographically dispersed affordable housing within the City.

Moreover, requiring builders of new market rate housing to provide some housing affordable to very low and low -income households is also reasonably related to the impacts of their developments, because rising land prices have been a key factor in preventing development of new affordable housing. New market -rate housing uses available land and drives up the price o f remaining land. New development without affordable units reduces the amount of land development opportunities available for the construction of affordable housing. In addition, n ew residents of market -rate housing place demands on services provided by b oth public and private sectors, creating a demand for new employees. Some of these public and private sector employees needed to meet the needs of the new residents earn incomes only adequate to pay for affordable housing. Because affordable housing is in short supply in the City, such employees may be forced to live in less than adequate housing within the City, pay a disproportionate share of their incomes to live in adequate housing in the City, or commute ever increasing distances to their jobs from housing located outside the City. These circumstances place strains on the City's ability to accept and service new market-rate housing development.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 3 SECTION 2: San Carlos Municipal Code Chapter 18 is hereby amended as shown in Exhibit A to this Ordinance.

SECTION 3: The City Council hereby declares that it would have passed this Ordinance sentence by sentence, paragraph by paragraph, and section by section, and does hereby declare that any provisions of this Ordinance are severable and if for any reason any sentence, paragraph or section of this Ordinance shall be held invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.

SECTION 4: This Ordinance shall be published and posted according to law and shall take effect and be in force from and after 30 days after its passage and adoption.

*****

I, City Clerk Crystal Mui, hereby certify that the foregoing Ordinance was introduced on the 13th day of June, 2022 and adopted at a regular meeting of the City Council of the City of San Carlos held on the_____ day of ______, 2022 by the following vote:

______________________________
CITY CLERK of the City of San Carlos

APPROVED:

___________________________
MAYOR of the City of San Carlos

Exhibit A: Amendments to San Carlos Municipal Code Chapter 18

AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 4 Exhibit A: Amendments to San Carlos Municipal Code Chapter 18 Additions are shown with double underlined

Chapter 18.16

AFFORDABLE HOUSING PROGRAMS

18.16.010 Purpose.

The purpose of this chapter is to:

A. Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the City as mandated by State law, California Government Code Section 65580 et seq.

B. Enhance the public health, safety, and welfare within the City. Requiring builders of new market rate housing to provide some housing affordable to very low-, lower-, and moderate-income households is also reasonably related to the impacts of such developments, because there is a need to offset the demand for affordable housing that is created by new development and mitigate environmental and other impacts that accompany new residential and commercial development by: protecting the economic diversity of the City’s housing stock; reducing traffic, transit, and related air quality impacts; promoti ng jobs/housing balance; and reducing the demands placed on transportation infrastructure in the region.

C. Promote the City’s goal to add affordable housing units to the City’s housing stock in proportion to the overall increase in new jobs and housing units.

D. Support the Housing Element policy to consider use of funds for developments with a higher percentage of below market rate units or deeper affordability than otherwise is required.

E. Support the Housing Element policy to encourage accessory dwelling units as a form of affordable housing.

F. Support the Housing Element goal of assisting in the development of new housing that is affordable at all income levels and the policies and actions that support this goal.

G. Support the Housing Element goal of removing and/or mitigating potential governmental constraints to the provision of adequate, affordable housing and the policies and actions that support this goal.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 5 H. Support the guiding principle of the Housing Element that housing in San Carlos supports an economically and socially diverse population.

I. Support the guiding principle of the Housing Element that housing in San Carlos creates and supports vibrant neighborhoods and a cohesive sense of community.

J. Meet the housing needs identified by the Housing Element of the General Plan.

K. Encourage the production of the very low-, low-, and moderate-income units planned for in the Housing Element of the General Plan.

L. Comply with the provisions of Government Code Section 65915 mandating the adoption of a City ordinance that specifies procedures for providing density bonuses and other incentives and concessions.

M. Provide and maintain affordable housing opportunities in the City through an affordable housing program for both ownership and rental housing, and, in furtherance of that goal, include rental affordable housing requirements in this chapter consistent with Government Code Sections 65850(g) and 65850.01.

N. Provide builders with alternatives to construction of below market rate units on the same site as the market rate residential development. Therefore, this chapter includes a menu of options from which a builder may select an alternative to the construction of below market rate units on the same site as the market rate residential development. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1550 § 2 (part), 2019: Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.010)

18.16.020 Definitions.

As used in this chapter and in Chapter 18.17, the following terms shall have the following meanings:

A. “Administrator” means the Housing Manager of the City or other person designated by the City Manager.

B. “Affordable ownership cost” means a sales price for a below market rate unit, based on a reasonable down payment, that results in a monthly housing cost (including mortgage principal and interest, property taxes, insurance, a reasonable allowance for utilities (pursuant to a schedule provided by the San Mateo County Housing Authority), parking, and homeowners’ association costs, if any) that does not exceed:

1. For very low-income households, one-twelfth of fifty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 6 2. For low-income households, one-twelfth of seventy percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

3. For moderate-income households, one-twelfth of one hundred ten percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty -five percent.

C. “Affordable rent” means monthly rent, including a reasonable allowance for utilities (pursuant to a schedule provided by the San Mateo County Housing Authority)and, parking, and any separately charged fees for use of the property for a below market rate unit that does not exceed:

1. For very low-income households, one-twelfth of fifty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

2. For low-income households, one-twelfth of sixty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

D. “Area median income” means the median household income for San Mateo County as published by the State of California pursuant to California Code of Regulations, Title 25, Section 6932, or successor provision.

E. “Assumed household size based on unit size” means a household of one person in a studio unit, two persons in a one-bedroom unit, three persons in a two-bedroom unit, and one additional person for each additional bedroom, unless the requirements of another funding source require an alternate method of calculating assumed household size.

F. “Below market rate housing agreement” means a written agreement bet ween a builder and the City as provided by Section 18.16.060(C).

G. “Below market rate housing plan” means a plan for a residential development submitted by a builder as provided by Section 18.16.060(B).

H. “Below market rate incentives” means incentives provided by the City for below ma rket rate (BMR) units and density bonus BMR units pursuant to Chapter 18.17.

I. “Below market rate (BMR) unit” means a dwelling unit that shall be offered at an affordable rent or affordable ownership cost to moderate-, low- and very low-income households and is required by the City pursuant to Section 18.16.030.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 7 J. “Builder” means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities that seeks City approvals for all or part of a residential development.

K. “City” means the City of San Carlos.

L. “Density bonus” is as defined in Chapter 18.17.

M. “Density bonus below market rate (BMR) unit” is as defined in Chapter 18.17.

N. “First approval” means the first discretionary approval to occur with respect to a residential development, or, for residential developments not requiring a discretionary approval, the issuance of a building permit.

O. “Household” means one person living alone or two or more persons sharing residency whose income is considered for housing payments.

P. “In lieu fee” is as defined in Section 18.16.030(C).

Q. “Low-income household” means a household whose annual income does not exceed the qualifying limits set for lower-income households in Section 50079.5 of the California Health and Safety Code.

R. “Market rate unit” means a dwelling unit in a residential development that is not a below market rate unit or a density bonus BMR unit or is not otherwise required by this chapter to be affordable to very low-, low-, or moderate-income households.

S. “Moderate-income household” means a household whose income does not exceed the qualifying limits set for persons and families of low or moderate income in Section 50093 of the California Health and Safety Code.

T. “Off-site below market rate unit” means a below market rate unit that will be built separately or at a different location than the residential development.

U. “On-site below market rate unit” means a below market rate unit that will be built at the same location as the residential development.

V. “Residential development” means any development project requiring any discretionary permit from the City, or a building permit, and which would create one or more additional dwell ing units and/or lots by construction or alteration of structures, or by subdivision of existing lots, or which would add one thousand square feet or more to an existing dwelling unit. A residential development includes dwelling

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 8 units that are part of a mixed-use development and the conversion of existing dwelling units to community housing subdivision ownership as defined in Chapter 17.48.

W. “Residential ownership development” means any residential development project that includes the creation of one or more residential dwelling units and/or lots that may be sold individually, or that would add one thousand square feet or more to an existing dwelling unit that may be sold individually. A residential ownership development also includes the conversion of existing dwelling units to community housing subdivision ownership as defined in Chapter 17.48.

X. “Residential rental development” means any residential development project that creates one or more residential dwelling units that cannot be sold individually, or that would add one thousand square feet or more to an existing dwelling unit that cannot be sold individually.

Y. “Very low-income household” means a household whose income does not exceed the qualifying limits set for very low-income households in Section 50105 of the California Health and Safety Code. (Ord. 1550 § 2 (part), 2019: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.030)

18.16.030 Below market rate housing requirements.

A. Residential Development. For all residential ownership developments of sevenfive (75) or more dwelling units, at least fifteen twenty percent (1520%) of the total units shall be below market rate units restricted for rent or sale to and occupancy by moderate-, low-, and very low-income households unless the residential development is exempt under Section 18.16.040. For all residential rental developments of seven (7) or more dwelling units, at least fifteen percent (15%) of the total units shall be below market rate units restricted for rent to and occupancy by low and very low-income households unless the residential development is exempt under Section 18.16.040. The number and type of below market rate units required for a particular residential development will be determined at first approval of the residential development in accordance with the provisions of Section 18.16.060. If a change in the residential development design results in a change in the total number of units, the number of below market rate units required will be recalculated to coincide with the final approved project.

1. Residential Ownership Development. At least fifteen twenty percent (1520%) of the total units in a residential ownership development shall be below market rate units, of which ten percent (10%) shall be affordable to moderatelow-income households and five percent (5%) affordable to low-income households unless an alternative is approved as described in Section 18.16.070.

2. Residential Rental Development. At least fifteen percent (15%) of the total units in a residential rental development shall be below market rate units, of which ten percent (10%) shall be affordable

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 9 to very low-income households and five percent (5%) affordable to low-income households unless an alternative is approved as described in Section 18.16.070. Projects may alternatively, but are not required to, designate fifteen percent (15%) of the units as affordable to very low -income households in order to maximize the benefits allowed by the State Density Bonus Law, Government Code Section 65915.

B. Calculation. In determining the number of whole below market rate units required, calculations shall be based on the number of dwelling units in the residential development, excluding any units above the otherwise maximum allowable density that are approved pursuant to the State Density Bonus Law, Government Code Section 65915 et seq. Any decimal fraction less than one-half (0.5) shall be rounded down to the nearest whole number, and any decimal fraction of one-half (0.5) or more shall be rounded up to the nearest whole number.

C. In Lieu Fee. Under the circumstances specified in this subsection, the below market rate housing requirements in subsection A of this section may be satisfied by the payment of a fee to the City in lieu of constructing the below market rate units within the residential development.

1. For a residential ownership development of one (1) dwelling unit, or for an addition of one thousand (1,000) square feet or more to an existing dwelling unit that may be sold individually, the builder shall pay an in lieu fee or construct an accessory dwelling unit consistent with Section 18.23.210, Accessory dwelling units/junior accessory dwelling units.

2. For a residential development that creates one (1) additional lot, or two (2) to six (6) rental dwelling units and/or lots, or two (2) to four (4) ownership dwelling units and/or lots, or for a residential development that triggers a decimal fraction of less than one-half (.50), the builder shall pay an in lieu fee for the partial fractional unit requirement or build a below market rate unit affordable to a low-income household.

3. The in lieu fee may be established from time to time by resolution of the City Council or ma y be determined for a specific residential development through the preparation of an affordability gap analysis that will determine the difference between the affordable sales price or rent and the fair market rate pricevalue for the unit, but in no event shall the in lieu fee exceed the cost of mitigating the impact of market rate units in a residential development on the need for affordable housing in the City.

4. Nothing in this chapter or Chapter 18.17 shall deem or be used to deem the in lieu fee authorized pursuant to this subsection C as an ad hoc exaction or, as a mandated fee required as a condition to developing property. , or as a fee subject to the analysis in Building Industry

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 10 Association of Central California v. City of Patterson, 171 Cal.App.4th 886 (2009). Any in lieu fee adopted by the City Council is a menu option that may serve as an alternative to the on -site below market rate housing requirements set forth in this chapter.

D. Below Market Rate Units Eligible for State Density Bonus. If a residential development receives a density bonus pursuant to Government Code Section 65915, any density bonus BMR unit and any dedication of property that made the residential development eligible for the density bonus that also satisfies the requirements of this chapter shall be counted as below market rate units pursuant to this chapter. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1550 § 2 (part), 2019: Ord. 1438 § 4 (Exh. A (part)), 2011:

Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.040)

18.16.040 Exemptions to below market rate housing requirements.

The requirements of Section 18.16.030 do not apply to:

A. Residential development of a legal accessory dwelling unit consistent with Section 18.23.210, Accessory dwelling units/junior accessory dwelling units.

B. The reconstruction of any dwelling units that have been destroyed by fire, flood, earthquake or other act of nature; provided, that the reconstruction of the site does not increase the number of legally constructed dwelling units or increase the area of the legally constructed dwelling units by one thousand (1,000) square feet or more.

C. Additions to existing dwelling units of less than one thousand (1,000) square feet.

D. Residential developments that already have more deed-restricted units that are affordable to moderate-, low- and very low-income households than Section 18.16.030 requires. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.050)

18.16.050 Below market rate unit standards.

Below market rate units built under Section 18.16.030 shall conform to the following standards:

A. Design. Except as otherwise provided in this chapter, and subject to the approval of the Administrator, below market rate units shall be evenly dispersed by floor and general location throughout a residential development and, consistent with Health & Safety Code Section 17929, may not be isolated to a specific floor or area on a specific floor and must have the same access to the common entrances to a structure as the market-rate units. Below market rate units may have different interior finishes and features than market rate units in the same residential development, so long as the finishes and features

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 11 are durable, of good quality, compatible with the market rate units, and consistent with contemporary standards for new housing. Below market rate units may must in aggregate be no smaller in aggregate average size than market rate units in the same residential development, so long as and the number of bedrooms in below market rate units shall be in the same proportion as in the total number of units in the residential development.

B. Timing. All below market rate units shall be constructed and occupied concurrently with or prior to the construction and occupancy of market rate units, and in phased residential developments, below market rate units may be constructed and occupied in proportion to the number of units in each phase of the residential development, unless an alternative phasing plan is approved as part of the below market rate housing plan for the residential development.

C. Duration of Affordability Requirement. Below market rate units produced under this chapter and Chapter 18.17 shall be legally restricted to occupancy by households of the income levels for whic h the units were designated in perpetuity, for a period of forty-five years for below market rate units offered for sale, and for a period of fifty-five years for below market rate units offered for rent. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.060) D. Parking. Below market rate units must be provided parking spaces at a ratio equivalent to the distribution of parking spaces among market rate units for an equivalent bedroom si ze (for instance, if 1.5 parking spaces on average are provided for each two-bedroom market rate unit, then the two-bedroom below market rate units must be provided 1.5 parking spaces on average). Any fractional result must be rounded up. For residential ownership developments, any additional cost for the parking spaces must be included in calculating the affordable ownership cost for the below market rate units. For residential rental developments, any additional cost for the parking spaces must be included in calculating the affordable rent for the below market rate units.

18.16.060 Compliance procedures.

A. General. Approval of a below market rate housing plan and recordation of an approved below market rate housing agreement prior to the recordation of any final or parcel map, or, if no final or parcel map is required, prior to issuance of any building permit, is a condition of the first approval of any residential development to which Section 18.16.030 applies. This section does not apply to exempt projects or to residential developments where the requirements of Section 18.16.030 are satisfied by payment of a fee under Section 18.16.030(C).

B. Below Market Rate Housing Plan. The decision-making body for the first approval (either the Planning Commission or the City Council) shall approve, conditionally approve or reject the below market

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 12 rate housing plan. No application for a first approval for a residential development to which Section 18.16.030 applies shall be deemed complete until a below market rate housing plan, in a form satisfactory to the Administrator, is deemed complete by the Administrator. The below market rate housing plan shall include:

1. The location, structure (attached, semi-attached, or detached), proposed tenure (for sale or rental), number of bedrooms, and size of the proposed market rate and below market rate units and the basis for calculating the number of below market rate units;

2. A floor or site plan depicting the location of the market rate and below market rate units and the location of the common entrances;

3. The income levels to which each below market rate unit will be made affordable;

4. The same information for any below market rate units provided to meet other requirements of state law, including but not limited to density bonus law, Government Code Section 65915; streamlined approval (SB 35; Government Code section 65913.4); or the Housing Crisis Act of 2019 (Government Code Section 66300).

5. For a phased residential development, a phasing plan that provides for the timely develop ment of the number of below market rate units proportionate to each proposed phase of development, or with an alternative phasing plan;

65. A description of any below market rate incentive requested pursuant to Chapter 18.17;

76. Any alternative means designated in Section 18.16.070(A) proposed for the residential development, along with information necessary to support the findings required by Section 18.16.070(B) for approval of such alternatives;

87. Builder’s agreement to conform to the provisions of this chapter, including but not limited to the provisions of Sections 18.16.080 through 18.16.100; and

98. Any other information reasonably requested by the Administrator to assist with evaluation of the below market rate housing plan under the standards of this chapter.

C. Below Market Rate Housing Agreement. The forms of the below market rate housing agreement and any resale and rental restrictions, deeds of trust, options to purchase, and other documents authoriz ed by this subsection, and any change in the form of any such document which materially alters any policy in the document, shall be approved by the Administrator and the City Attorney or his or her designee prior to

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 13 being executed with respect to any residential development prior to the recordation of any final or parcel map, or, if no final or parcel map is required, prior to issuance of any building permit. The form of the below market rate housing agreement will vary, depending on the manner in which the provisions of this chapter are satisfied for a particular development. All below market rate housing agreements shall include, at minimum, the following:

1. Description of the residential development, including whether the below market rate units will be rented or owner-occupied;

2. The number, size, number of bedrooms, and location of all below market rate units;

3. Below market rate incentives granted by the City, if any, pursuant to Chapter 18.17;

4. Provisions and/or documents for resale restrictions, deeds of trust, options to purchase, rental restrictions, or other documents as appropriate;

5. Provisions for monitoring the ongoing affordability of the units, and the process for qualifying prospective resident households for income eligibility;

6. Formula for calculating affordable rent and/or affordable ownership cost and the proposed initial sales price for the below market rate units and, any density bonus BMR units, and any very low or low income housing units required to meet any other requirements of state law, including but not limited to density bonus law, Government Code Section 65915; streamlined approval (SB 35; Government Code section 65913.4); or the Housing Crisis Act of 2019 (Government Code Section 66300),as applicable;

7. Builder’s agreement to conform to the provisions of this chapter, including but not limited to th e provisions of Sections 18.16.080 through 18.16.100; and

8. Any additional obligations relevant to the compliance with this chapter.

If a builder chooses to satisfy all or a portion of the below market rate requirement with rental units, as permitted by Government Code Section 65589.8, then the below market rate housing agreement shall include the builder’s agreement to the limitations on rents and applicable terms and conditions required by Section 18.16.030(C).

D. Recording of Agreement. Prior to the recordation of any final or parcel map for a residential development, or, if no final or parcel map is required, prior to issuance of any building permit for a residential development, below market rate housing agreements that are approved and fully executed

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 14 shall be recorded against residential developments containing below market rate units. Additional rental or resale restrictions, deeds of trust, options to purchase, and/or other documents acceptable to the Administrator shall also be recorded at the time of sale against owner-occupied below market rate units.

In cases where the requirements of this chapter are satisfied through the development of off -site below market rate units, the below market rate housing agreement shall simultaneously be recorded against the property where the off-site below market rate units are to be developed.

E. Amendments. Modifications to the below market rate housing plan shall be considered a change in the approved conditions of approval and processed in the same manner as the original below market rate housing plan. (Ord. 1550 § 2 (part), 2019; Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.070)

18.16.070 Alternatives.

A. Builder Proposal. A builder may propose an alternative means of compliance in a below market rate housing plan required by Section 18.16.060(B) according to the following provisions. The builder may also partner with a nonprofit affordable housing provider to meet its below marke t rate housing obligations through one of the alternatives set forth in this section.

1. Increase in Total Number of Below Market Rate Unit Bedrooms. The builder may propose a plan that provides larger units and increases the total number of bedrooms t hat would have otherwise been provided under this chapter, even if fewer total units are produced.

12. Provision of a Greater Level of Affordability. The builder may propose a greater level of affordability than required under this chapter and reduce the total number of units otherwise required.

23. Off-Site Construction. Below market rate units may be proposed off-site within the City limits if it can be demonstrated that the proposal meets all of the following conditions:
a. Tthe off-site construction proposal would result in a minimum of ten percent more total below market rate units than required by this chapter. and if b. Tthe below market rate units will be located in an area where, based on the availability of affordable housing, the Administrator decision-making body finds that the need for such units is greater than the need in the area of the proposed development.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 15 c. The off-site location is suitable for the proposed below market rate housing, consistent with any adopted guidelines and the housing element, and will not tend to cause residential segregation or concentrations of poverty.
d. If the builder proposes to provide rental off-site below market rate units in place of ownership on- site below market rate units, the rental off-site below market rate units shall meet the affordability and other requirements specified in Section 18.16.030(C). e. Off-site below market rate units shall meet or exceed minimum quality standards specified in conditions of approval and may include any combination of new dwelling units, new dwelling units created in existing structures, or the preservation of existing affordable units at risk of loss or by conversion of existing market rate units to below market rate units if the preservation or conversion of these units is consistent with Government Code Section 65583.1 and allows the City to use the preserved or converted units to help meet its regional housing needs allocation.

The following information, to the satisfaction of the Administrator, is required for submittal of a proposal for off-site below market rate units:
a. If the off-site below market rate units will not be constructed concurrently with the market rate units, the builder shall specify the security to be provided to the City to ensure that the below market rate units will be constructed in a timely manner, including evidence of ownership or control of any sites proposed for the below market rate units, to the satisfaction of the Administrator, and clear and convincing evidence that financing has been secured for the off-site below market rate units.
b. For preservation of existing affordable units at risk of loss or conversion of existing market rate units to below market rate units:
i. Existing rent or appraised value of each unit on the property to be converted, proposed rents or sales prices after conversion or preservation, and any existing rent limits, resale price restrictions, or other affordability restrictions imposed by any public agency, nonprofit agency, land trust, or other body.
ii. Size of households occupying each unit on the property to be converted, vacancy rates for each month during the past two years, and existing tenant incomes.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 16 iii. A property inspection report prepared by a certified housing inspector and a termite report, both prepared no more than sixty days before the filing of the application. The property inspection report shall include a full examination of all common and private areas within the existing dwelling units for compliance with applicable building codes. iv. Plans and a written description of rehabilitation to be completed, including correction of all code violations and completion of all termite repairs described in the property inspection report and termite report; cost of rehabilitation; and the appraised value of the property, including land, buildings, and all other improvements, after rehabilitation.
v. Description of benefits to be offered existing tenants, including but not limited to right of first refusal to remain in the unit, and required relocation assistance for existing tenants.
vi. Evidence that the proposal complies with the provisions of Government Code Section 65583.1 and that the City may utilize the units to help meet its regional housing needs allocation.

34. Land Dedication. Below market rate units may be proposed off-site within the City limits if the proposal meets all of the following conditions:
a. The land dedication proposal would result in a minimum of ten percent more total below market rate units than required by this chapter.
b. The dedicated land is located either on the site of the housing development or in an area where, based on the availability of affordable housing, the decision-making body finds that the need for such units is greater than the need in the area of the proposed development. c. The dedicated land is suitable for the proposed below market rate housing, consistent with any adopted guidelines and the housing element, and will not tend to cause residential segregation or concentrations of poverty.
d. The affordable housing to be built on the dedicated land shall meet or exceed minimum quality standards specified in this chapter.

The builder shall specify the security to be provided to the City to ensure that the below market rate units will be constructed on the dedicated land in a timely manner, including evidence of ownership or control of the sites to be dedicated, to the satisfaction of the Administrator, and clear and

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 17 convincing evidence that financing has been secured for the construction of the below market rate units on the dedicated land. Prior to issuance of any building permit for the residential development, the property shall either be dedicated to the City or to the developer of the below market rate units on the dedicated land, as determined by the City.

4. Preservation of Historically Significant Structures and Resources. Adjustments may be made to the required number and affordability level of the below market units based on the economics associated with preservation of historically significant structures and resources as identified under guidelines as set forth by the California Environmental Quality Act (CEQA).

5. Rental Units in Place of Ownership Units. The builder may propose rental on -site below market rate units in a residential ownership development rather than sell below market rate units. If the builder proposes this alternative, then at least fifteen percent of the total units (excluding any units approved beyond the otherwise maximum allowable density pursuant to the State Density Bonus Law) shall be below market rate units which meet the standards set forth in Section 18.16.030 for residential rental developments. of which five percent shall be affordable to low-income households and ten percent affordable to very low-income households.

6. Combination. The decision-making body may accept any combination of the above options.

B. Findings. The decision-making body for the first approval may approve, conditionally approve or reject any alternative proposed by a builder as part of a below market rate housing plan. Any approval or conditional approval shall be based on the following finding:

1. That the purposes of this chapter would be better served by implementation of the proposed alternative(s) and that the proposal meets the greatest community needs at the time the alternative is reviewed. As one of the factors determining whether the purposes of this chapter would be better served under the proposed alternative, the decision-making body should shall consider whether implementation of an alternative would overly concentrate below market rate units within any specific area cause or exacerbate racial segregation and, if so, shall reject the alternative unless the concentration of below market rate units is offset by other identified benefits that flow from implementation of the alternative at issue. (Ord. 1550 § 2 (part), 2019; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.080)

18.16.080 Eligibility for below market rate units (owner-occupied and rental units).

A. General Eligibility. If the City or its designee maintains a list of eligible households, initial and subsequent occupants will be selected first from the list of eligible households, to the maximum extent possible, in accordance with any rules approved by the Administrator.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 18 B. Preferences. Preferences will be given to those households where at least one member in the household lives or works in San Carlos, including part-time and household workers, or works for a public agency, such as a school district or fire district, serving residents living in the City of San Carlos, except for those households deemed ineligible due to conflict of interest listed in subsection C of this section.

C. Conflict of Interest. The following individuals are ineligible to purchase or rent a below market rate unit as specified below:

1. Elected City Council officials and all Planning Commissioners (including their spouses and dependents);

2. All City staff members (including their spouses and dependents) who participated in the approval process for the residential development or who establish policy for City housing programs;

3. The builder and its officers and employees (and their spouses and dependents); and

4. The project or land owner of the residential development and its officers and employees (and their spouses and dependents).

D. Occupancy. Any household which occupies a rental below market rate unit or purchases a below market rate unit shall occupy that unit as its principal residence and shall not lease or sublease to a different party. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.100)

18.16.090 Owner-occupied units.

A. Initial Sales Price for Below Market Rate Units. The initial sales price of a below market rate unit shall be set by the City at the time a building permit is issued for the below market rate unit so that the eligible household will pay an affordable ownership cost. The initial sales price shall be based on the builder’s estimate of homeowners’ association dues, if any, the City’s assumptions for interest rates and other factors, and the formula for calculating sales prices contained in the below market rate housing agreement. The City shall provide the builder with an estimate of the initial sales price for the below market rate units at an earlier date upon written request by the builder. After the building permit is issued, the initial sales price may be adjusted by the City due to changes in market factors upon written request by the builder no less than ninety days prior to marketing of the below market rate units. In no case will the initial sales price be adjusted below the initial sales price calculated when the build ing permit was issued.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 19 B. Certification of Eligibility. The income of each household proposed to purchase a below market rate unit shall be certified to the City or the City’s designee prior to the sale of a below market rate unit. Each household shall provide written verification of income, including but not limited to such documents as income tax returns for the previous calendar year, W-2 statements, and pay stubs. Income verification shall be submitted on a form approved by the City.

C. Initial Sales Deed Restrictions. Deed restrictions provided by the City and recorded against title to the below market rate unit shall be required as a condition of sale for all owner-occupied below market rate units and shall include, but are not limited to, the City’s purchase option, resale restrictions, and procedures and policies regarding changes in title to ensure that owner-occupied below market rate units remain affordable for not less than forty-five years in perpetuity. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.110)

18.16.100 Rental units.

A. Initial Rents for Below Market Rate Units. The initial rent of below market rate units shall be set by the City at least thirty days prior to marketing of the below market rate units so that the eligible households will pay an affordable rent. The initial rent shall be based on a schedule provided by the San Mateo County Housing Authority the City’s assumptions for utility costs and the formula for calculating rents contained in the below market rate housing agreement. The City shall provide the builder with an estimate of the initial rent for the below market rate units at an earlier date upon written request by the builder.

B. Selection of Tenants. Rental units will be offered to eligible households at an affordable rent. If no eligible households are identified by the City pursuant to Section 18.16.080, the owners of rental below market rate units shall fill vacant units by selecting income-eligible households from the San Mateo County Office of Housing Section 8 Housing Choice Voucher program or similar program. If no eligible households are identified from the County program or similar program, owners may fill vacant units through their own selection process; provided, that they publish notice of the availability of below market rate units according to guidelines established by the Administrator.

C. Certification of Eligibility. The owner of rental below market rate units shall certify each tenant household’s income to the City or City’s designee at the time of initial rental and annually thereafter. The owner shall obtain and review documents from each tenant household that provide written verification of income, including but not limited to such documents as income tax returns for the previous calendar year, W-2 statements, and pay stubs. Income verification shall be submitted on a form approved by the City.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 20 D. Nondiscrimination. When selecting tenants, the owners of below market rate units shall follow all fair - housing laws, rules, regulations, and guidelines. The owner shall apply the same rental terms and conditions to tenants of below market rate units as are applied to all other tenants, except as required to comply with this chapter (for example, rent levels and income requireme nts) or with other applicable government subsidy programs.

E. Move-In Costs. Total deposits, including security deposits, required of households occupying a below market rate unit shall be limited to first and last month’s rent plus a cleaning deposit n ot to exceed one month’s rent.

F. Annual Report. The owner shall submit an annual report summarizing the occupancy of each below market rate unit for the year, demonstrating the continuing income eligibility of each tenant, and the rent charged for each below market rate unit. The Administrator may require additional information to confirm household income and rents charged for the unit if he or she deems it necessary.

G. Periodic Audit. The City maintains the right to periodically audit the informati on supplied to the City for the annual report if deemed necessary to ensure compliance with this chapter. In addition, owners of below market rate units shall cooperate with any audits conducted by the City, State agencies, Federal agencies, or their designees.

H. Rent Regulatory Agreements. A rent regulatory agreement provided by the City shall be recorded against the any residential rental development prior to final inspection or issuance of any certificate of occupancy for any dwelling unit in the residential development. The rent regulatory agreement shall include the developer’s agreement to rent the below market rate units at affordable rents for not less than fifty-five years in perpetuity. The rent regulatory agreement shall include, but not be limited to, the limitations on rents required by this section, provisions for selection of tenants and tenant eligibility, provisions for nondiscrimination and monitoring, and other provisions required to ensure compliance with this chapter.

I. Changes in Tenant Income. If, after moving into a below market rate unit, a tenant’s household income exceeds the limit for that unit, the following shall apply:

1. If the tenant’s income does not exceed the income limits of other below market rate units in the residential development, the owner may, at the owner’s option, allow the tenant to remain in the original unit and re-designate the unit as affordable to households of a higher income level, as long as the next vacant unit is redesignated for the income category previously applicable to the tenant’s household. Alternatively, if a below market rate unit meeting the tenant’s revised income threshold

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 21 becomes available within six months and the tenant meets the income eligibility for that unit, the owner shall allow the tenant to apply for that unit.

2. If there are no units designated for a higher income category within the residential development that may be substituted for the original unit, the owner may raise the tenant’s monthly rent to an amount, net of utilities, that is the lesser of rent for a comparable market rate unit in the residential development or one-twelfth of thirty percent of the tenant’s household income. Upon vacancy by the tenant, the unit must be rented to a household in the income category previously applicable to the unit.

3. If the tenant’s income exceeds the income designated for all below market rate units in the residential development, the tenant shall be given six months’ notice to vacate the unit. If within those six months another unit in the residential development is vacated, the owner may, at the owner’s option, allow the tenant to remain in the original unit, increase the rent to that for a comparable market rate unit in the residential development, and designate the newl y vacated unit as a below market rate unit affordable at the income level previously applicable to the unit converted to market rate. The newly vacated unit shall be comparable in size (for example, number of bedrooms, bathrooms, square footage, etc.) to the original unit. (Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004.

Formerly 18.200.120)

18.16.110 Below market rate fund.

A. Trust Fund. A fund for the deposit of fees established under this and similar prior municipal codes exists as Fund 29 (the “fund”). This fund shall receive all fees contributed under this chapter and may also receive monies from other sources.

B. Purpose and Limitations. Monies deposited in the fund shall be used to increase and improve the supply of housing affordable to moderate-, low-, very low-, and extremely low-income households. Monies may also be used to cover reasonable administrative or related expenses associated with the administration of this chapter.

C. Administration. The fund shall be administered by the Administrator, who may develop procedures to implement the purposes of the fund consistent with the requirements of this chapter and subject to any adopted budget of the City.

D. Expenditures. Fund monies shall be used in accordance with the City’s Housing Element, or subsequent plans adopted by the City Council to maintain or increase the quantity, quality, and variety of affordable housing units or assist other governmental entities, private organizations or individuals to do

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 22 so. Permissible uses include, but are not limited to, land acquisition, debt service, parcel assemblage, gap financing, housing rehabilitation, grants, unit acquisition, new construction, and other pur suits associated with providing affordable housing. The fund may be used for the benefit of both rental and owner-occupied housing. (Ord. 1480 (Exh. C (part)), 2015: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.130)

18.16.120 Periodic review and enforcement.

A. Periodic Review. It is the intent of the City Council to review the provisions of this chapter concurrently with the review of the City’s Housing Element, including provisions for income targeting, funding priorities, fees, and other provisions, to ensure that such provisions are economically feasible and are designed to serve the community’s highest priorities for the provision of affordable housing.

B. Penalty for Violation. It shall be a misdemeanor to violate any provision of this chapter. Without limiting the generality of the foregoing, it shall also be a misdemeanor for any person to sell or rent to another person a below market rate unit or density bonus BMR unit at a price or rent exceeding the maximum allowed under this chapter or Chapter 18.17 or to sell or rent a below market rate unit or density bonus BMR unit to a household not qualified under this chapter. It shall further be a misdemeanor for any person to provide false or materially incomplete information to the City or to a seller or lessor of a below market rate unit or density bonus BMR unit to obtain occupancy of housing for which he or she is not eligible.

C. Legal Action. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this chapter, including:

1. Actions to revoke, deny or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval;

2. Actions to recover from any violator of this chapter civil fines, restitution to prevent unjust enrichment from a violation of this chapter, and/or enforcement costs, including attorneys’ fees;

3. Eviction or foreclosure; and

4. Any other appropriate action for injunctive relief or damages. Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any person, owner, household or other party from the requirements of this chapter. (Ord. 1480 (Exh. C (part)), 2015: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.140)

18.16.130 Waivers of affordable housing requirements.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 23 A. Requests for waivers shall be made concurrent with application submittal. As part of an application for the first approval of a residential development, a builder may request that the requirements of this chapter be reduced, adjusted, or waived based upon a showing that applying the requirements of this chapter would result in an unconstitutional taking of property or would result in any other unconstitutional result. Any such request shall be submitted concurrently with the below market rate housing plan required by this chapter. The builder shall set forth in detail the factual and legal basis for the claim, including all supporting technical documentation, and shall bear the burden of presenting the requisite evidence to demonstrate the alleged unconstitutional result. The City may assume each of the following when applicable:

1. The builder will benefit from the incentives set forth in the municipal code; and

2. If required to provide below market rate units, the builder will provide the most economical affordable housing units feasible in terms of financing, construction, design, location and tenure.

B. The City Council, based upon legal advice provided by or at the behest of the City Attorney, may approve a reduction, adjustment, or waiver if the Council determines that applying the requirements of this chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. The reduction, adjustment, or waiver may be approv ed only to the extent necessary to avoid an unconstitutional result after adoption of written findings, based on legal analysis and the evidence. If a reduction, adjustment, or waiver is granted, any change in the residential development shall invalidate the reduction, adjustment, or waiver, and a new application shall be required for a reduction, adjustment, or waiver. (Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010. Formerly 18.200.150)

Chapter 18.17

AFFORDABLE HOUSING INCENTIVES

18.17.010 Purpose.

The purpose of this chapter is to provide procedures for granting incentives for the construction of affordable housing to encourage the production of affordable housing and to achieve the following additional goals:

A. Housing Element Goals and Policies. To implement goals and policies contained in the Housing Element providing for incentives for the construction of affordable housing.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 24 B. Compliance with State Law. To comply with the provisions of Government Code Section 65915 et seq. (“State Density Bonus Law”), which mandates the adoption of a City ordinance specifying procedures for providing the density bonuses and other incentives and concessions required by th ose at sections. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.010)

18.17.020 Definitions.

Terms defined in Section 18.16.020 shall have the same meaning in this chapter. In addition, the following terms shall have the following meanings when used in this chapter:

A. “Bonus units” means dwelling units allowed pursuant to Section 18.17.030(A) or Section 18.17.040 that exceed the otherwise allowable maximum gross residential density for a residential housing development.

B. “Concessions and incentives” means regulatory concessions and incentives as defined by Government Code Section 65915(k) and as listed in Section 18.17.050.

C. “Density bonus” means a density increase over the otherwise allowable maximum gross residential density for a residential housing development, pursuant to Section 18.17.030(A) or Section 18.17.040.

D. “Density bonus below market rate (BMR) unit” means a dwelling unit that is not a below market rate unit that is required by Section 18.17.040; is offered at an affordable rent or affordable ownership cost to moderate-, low- or very low-income households; and qualifies a residential housing development for a density bonus pursuant to Section 18.17.040.

E. “Development standard” means a site or construction condition that applies to a residential housing development pursuant to any ordinance, General Plan element, specific plan, or other local condition, law, policy, resolution, or regulation. A “site and construction condition” is a development regulation or law that specifies the physical development of a site and buildings on the site in a residential housing development.

F. “Maximum allowable gross residential density” means the maximum number of dwelling units permitted in a residential housing development by the City’s Zoning Ordinance and by the Land Use Element of the General Plan on the date that the application for the residential housing development is deemed complete submitted, excluding any density bonus. If the maximum density allowed by the Zoning Ordinance is inconsistent with the density allowed by the Land Use Element of the General Plan, the Land Use Element density shall prevail.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 25 G. “Senior citizen housing development” means a residential housing development with at least thirty- five dwelling units, meeting the definition of a senior citizen housing development set forth in California Civil Code Section 51.3 or a mobile home park that limits residency based on age requirements pursuant to Section 798.76 or 799.5 of the Civil Code. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.020)

18.17.030 City incentives for below market rate units.

The incentives provided by this section are available to residential housing developments that provide on- site below market rate units in compliance with Chapter 18.16. Residential Housing developments which have been granted a density bonus pursuant to Section 18.17.040 are not eligible for the City density bonus described in subsection A of this section but may be granted another incentive included in this section as a concession or incentive granted pursuant to Section 18.17.050.

A. City Density Bonus.

1. Bonus for Owner-Occupied Units: Upon the discretionary issuance of a conditional use permit by the Planning Commission, residential owner-occupied developments with one or more on-site below market rate units that are affordable to low-income households, or to a lower income category, may be granted one additional unit for each unit affordable to low -income households or to a lower income category. This density bonus shall not apply to single-family residential developments and is an alternative to density bonuses allowed under California Government Code Section 65915 and Section 18.17.040.

2. Bonus for Rental Units: Upon the discretionary issuance of a conditional use permit by the Planning Commission, residential rental developments with one or more on-site below market rate units that are affordable to low-income households may be granted two additional units for each unit affordable to low - income households. Residential rental developments with one or more on-site below market rate units that are affordable to very low-income households, or to a lower income category, may be granted four additional units for each unit affordable to very low-income households or to a lower income category.

This density bonus shall not apply to single-family residential developments and is an alternative to density bonuses allowed under California Government Code Section 65915 and Section 18.17.040.B. Modified Development Standard Calculations. Bonus unit(s) approved under the density bonus incentive described in subsection A of this section shall be exempted from floor area ratio and density requirements. In addition, the bonus unit(s) will not be counted in determining the required number of below market rate units.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 26 C. Flexible Parking Standards. Residential developments with one or more on-site below market rate units shall be allowed limited reductions in the parking requirements related to any dwelling units or allowed limited use of tandem and/or shared parking arrangements or allowed a combination of these modified parking standards.

D. Flexible Setback Allowance. Residential developments with one or more on -site below market rate units may be allowed limited reductions in the minimum setback requirements if the following findings are made through the design review process:

1. That the proposed alternative design at the proposed location will not be detrimental or injurious to improvements in the vicinity and will not be detrimental to the public health, peace, safety, comfort, general welfare or convenience; and

2. The proposed alternative design shall not significantly reduce the privacy of the adjoining property owners or significantly reduce sunlight into adjoining properties.

E. Permit Streamlining. In certain zoning districts, the requirement of a conditional use permit for dwelling units above the ground floor may be eliminated for residential developments with one or more on-site below market rate units.

F. Financial Assistance. To the extent budgeted by the City Council and otherwise available, financial assistance from the City or from sources as may be available to the City may be available to the builder in the form of loans or grants for the below market rate housing component of the residential development.

The builder shall be responsible for complying with all requirements associated with the particular funding source(s), including any requirements imposed by the State for payment of prevailing wages. Rental residential developments that offer the deepest affordability and which lack alternative fund ing sources shall be given the highest priority for financial assistance, in particular, rental residential developments affordable to very low- and low-income households.

G. Below Market Rate Housing Plan. All requests for City incentives provided purs uant to this section shall be submitted with the below market rate housing plan required by Section 18.16.060(B). The builder shall include the following additional information in the below market rate housing plan:

1. A site plan depicting the number and location of all market rate, below market rate and bonus units.

2. A calculation of the maximum number of dwelling units permitted by the Cit y’s Zoning Ordinance and General Plan for the residential development, excluding any density bonus.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 27 3. Description of any City incentives requested pursuant to this section. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.030)

18.17.040 State mandated density bonuses.

A. Eligibility for Density Bonus. A “housing development” as defined in State Density Bonus Law shall be eligible for a density bonus and other regulatory incentives that are provided by State Density Bonus Law when the builder seeks and agrees to provide affordable and other types of housi ng in the threshold amounts specified in State Density Bonus Law. A “housing development” includes only the residential component of a mixed-use project.

State law (Government Code Section 65915) provides that a residential development resulting in a net increase of at least five dwelling units is eligible for a density bonus as follows:

1. Very Low- and Lower-Income Housing and Senior Housing. A residential development is eligible for a twenty percent density bonus if the builder seeks and agrees to construct at least one of the following:
a. Ten percent of the total units as density bonus BMR units affordable to low-income households at an affordable rent or affordable ownership cost; or
b. Five percent of the total units as density bonus BMR units affordable to very low -income households at an affordable rent or affordable ownership cost; or
c. A senior citizen housing development.

2. Moderate-Income Housing. A residential development is eligible for a five percent density bonus if the builder seeks and agrees to construct ten percent of the total units as for-sale density bonus BMR units affordable to moderate-income households, if the residential development also meets all of the following additional criteria:
a. The residential development is a common interest development as defined by Section 1351 of the California Civil Code;
b. All of the dwelling units in the residential development are offered to the public for purchase; and c. The density bonus BMR units are offered for sale at affordable ownership cost.

3. Additional Density Bonus. The density bonus for which the residential development is eligible shall increase if the percentage of very low-, low-, and moderate-income density bonus BMR units exceeds the base percentage established in subsections (A)(1) and (A)(2) of this section, as follows:

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 28 a. Very Low-Income Units. For each one percent increase above five percent in the percentage of density bonus BMR units affordable to very low-income households, the density bonus shall be increased by two and one-half percent up to a maximum of thirty-five percent. b. Low-Income Units. For each one percent increase above ten percent in the percentage of density bonus BMR units affordable to low-income households, the density bonus shall be increased by one and one-half percent up to a maximum of thirty-five percent. c. Moderate-Income For-Sale Units. For each one percent increase above five percent in the percentage of for-sale density bonus BMR units affordable to moderate-income households, the density bonus shall be increased by one percent up to a maximum of thirty-five percent.

4. Below Market Rate Units Not Eligible for State Density Bonus. All density bonus BMR u nits qualifying a residential development for a density bonus pursuant to this section must be provided in addition to the below market rate units required by Section 18.16.030.

The following table summarizes available State density bonuses:

TABLE 18.17.040: STATE MANDATED DENSITY BONUS SUMMARY
Income Category
Minimum%
Density
Bonus
BMR Units
Bonus
Granted
Additional
Bonus for
Each 1%
Increase in
Density
Bonus BMR
Units
% Density
Bonus
BMR Units
Required
for
Maximum
35% Bonus
Very Low-Income 5% 20% 2.5% 11%
Low-Income 10% 20% 1.5% 20%
Moderate-Income (for-sale common
interest development only)
10% 5% 1% 40%

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 29 Allowable Number of
Incentive(s)/Concession(s)
100% 20% — —
B. State Mandated Density Bonus for Land Donation, Child Care Facility, or Condominium Conversion.

1. A residential development may be eligible for a density bonus for land donation pursuant to the requirements set forth in Government Code Section 65915(g).

2. A residential development that contains a child care facility as defined in Government Code Section 65915(h) may be eligible for an additional density bonus, concession, or incentive pursuant to the requirements set forth in Section 65915(h).

3. Condominium conversions may be eligible for a density bonus, concession, or incen tive pursuant to the requirements set forth in Government Code Section 65915.5.

BC. Calculation of State Mandated Density Bonus.

1. The amount of density bonus to which a housing development is entitled shall be as specified in State Density Bonus Law. Each residential housing development is entitled to only one density bonus, which may be selected based on the percentage of either density bonus BMR units affordable to very low-income households, low-income households, or moderate-income households, or the residential development’s status as a senior citizen housing development on the basis of only one category, as described in the subparagraphs of Government Code Section 65915(b)(1). Density bonuses from more than one category may not be combined.

2. When calculating the number of permitted bonus units, any calculations resulting in fractional units shall be rounded to the next larger whole number, including base density and bonus density.

3. The bonus units shall not be included when determining the number of density bonus BMR units required to qualify for a density bonus. When calculating the required number of density bonus BMR units, any calculations resulting in fractional units shall be rounded to the next larger integer.

4. The builder may request a lesser density bonus than the residential housing development is entitled to, but no reduction will be permitted in the minimum percentages of required density bonus BMR units pursuant to subsection A of this section State Density Bonus Law. Regardless of the number of density bonus BMR units, no residential housing development may be entitled to a

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 30 density bonus of more than that authorized by State Density Bonus Law. than thirty-five percent. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.040)

18.17.050 State mandated concessions and incentives, parking reductions, and waivers.

A. Eligibility for Concessions and Incentives. A builder may request concessions and incentives pursuant to this section only when the builder is eligible for and also seeks and receives a State density bonus pursuant to Section 18.17.040. The number of incentives that may be requested shall be based upon the number the applicant is entitled to pursuant to State Density Bonus Law. State law (Government Code Section 65915) provides that a residential development is eligible for concessions and incentives as follows:

1. One concession or incentive for residential developments that include at least ten percent of the total units as density bonus BMR units affordable to low-income households, at least five percent of the total units as density bonus BMR units affordable to very low-income households, or at least ten percent of the total units in a common interest development as density bonus BMR units affordable to moderate-income households.

2. Two concessions or incentives for residential developments that include at l east twenty percent of the total units as density bonus BMR units affordable to low-income households, at least ten percent of the total units as density bonus BMR units affordable to very low-income households, or at least twenty percent of the total units in a common interest development as density bonus BMR units affordable to moderate-income households.

3. Three concessions or incentives for residential developments that include at least thirty percent of the total units as density bonus BMR units affordable to low-income households, at least fifteen percent of the total units as density bonus BMR units affordable to very low-income households, or at least thirty percent of the total units in a common interest development as density bonus BMR units affordable to moderate-income households.

The following table summarizes requirements for incentives and concessions:

TABLE 18.17.050: REQUIREMENTS TO QUALIFY FOR STATE MANDATED

INCENTIVES/CONCESSIONS

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 31 Income Category
Percentage of Density
Bonus BMR Units to
Quality for Incentives
Very Low-Income 5% 10% 15%
Low-Income 10% 20% 30%
Moderate-Income (for-sale common interest
development only)
10% 20% 30%
Allowable Number of Incentive(s)/Concession(s) 1 2 3
Notes:

A. A concession or incentive may be requested only if an application is also made for a density bonus pursuant to Section 18.17.040.

B. Concessions or incentives may be selected from only one category (very low, low, or moderate).

C. No concessions or incentives are available for land donation.

D. Condominium conversions and day care centers may have one concession or a density bonus at the City’s option, but not both.

B. Definition of Concession or Incentive. For the purposes of this section, “concession” or “incentive” means the following:

1. A reduction in development standards or architectural design requirements which exceed the minimum building standards approved by the State Building Standards Commission in compliance with State law (Health and Safety Code Section 18901 et seq.), including, but not limited to, setback, coverage, and/or parking requirements, which result in identifiable, financially sufficient, and actual cost reductions, based upon appropriate financial analysis and documentation if required by this section.

2. Approval of mixed-use development in conjunction with the proposed residential development if nonresidential land uses will reduce the cost of the residential development, and the nonresidential land uses are compatible with the residential development and existing or p lanned surrounding development.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 32 3. Other regulatory incentives or concessions proposed by the builder or the City that will result in identifiable, financially sufficient, and actual cost reductions, and based upon appropriate financial analysis and documentation if required by this section.

BC. Concessions Not Requiring Financial Pro Forma Evidence of Cost Reduction from Applicant. The following concessions and incentives shall be available to the builder without any requirement that the builder submit a pro forma reasonable documentation to the City demonstrating that the requested concession or incentive results in identifiable financially sufficient, and actual cost reductions:

1. A reduction in the usable open space requirement;

2. An increase in the maximum lot coverage requirement;

3. A reduction in minimum lot dimensions;

4. A reduction in minimum distance between buildings;

5. A reduction in landscaping area requirements;

6. Deferral until occupancy of development impact fees;

7. Any of the City incentives listed in Section 18.17.030(A) through (E), inclusive.

CD. Concessions Requiring Financial Pro Forma Evidence of Cost Reduction from Applicant. All other concessions and incentives shall require the builder to demonstrate to the City Council through the provision of a pro forma reasonable documentation that the requested concession or incentive results in identifiable, financially sufficient, and actual cost reductions to the residential housing development to provide for affordable housing costs or rents. The pro forma shall include:

1. The actual cost reduction achieved through the concession or incentive;

2. Evidence that the cost reduction allows the builder to provide affordable rents or affordable sales prices; and

3. All other information as may be requested by the Administrator to ensure that the required findings can be made.

DE. Parking Reduction. Pursuant to Government Code Section 65915(p), if If a residential housing development is eligible for a density bonus pursuant to Section 18.17.040(A), the builder may request an

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 33 on-site vehicular parking ratio , inclusive of handicapped and guest parking, that does not exceed the following: number of spaces specified in Government Code Section 65915(p).

1. Zero- to one-bedroom dwelling unit: one on-site parking space.

2. Two- to three-bedroom dwelling unit: two on-site parking spaces.

3. Four- or more bedroom dwelling unit: two and one-half on-site parking spaces.

On-site parking may include tandem and uncovered parking.

A builder may request this parking reduction in addition to concessions and incentives permitted by subsection A of this section.

EF. Waiver. Applicants may seek a waiver of any development standards that will have the effect of physically precludinge the construction of a residential housing development that is eligible for a density bonus pursuant to Section 18.17.040(A) with the density bonus at the densities or with the concessions and incentives permitted by Section 18.17.040 or this section Section 18.17.050.A. The builder shall provide reasonable documentation demonstratinge that the development standards that are requested to be waived will have the effect of physically precluding the construction of the residential housing development with the density bonus at the densities or with the concessions and incentives permitted by Section 18.17.040 or Section 18.17.050.Athis section.

FG. City Financial Participation Not Required. Nothing in this chapter requires the provision of direct financial incentives for the residential housing development, including but not limited to the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The City at its sole discretion may choose to provide such direct financial incentives.

GH. Prevailing Wages. Financial and certain other incentives may require payment of prevailing wages by the residential housing development if required by State law. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.050)

18.17.060 Review procedures for State mandated density bonuses, concessions, and incentives, waivers, and parking reductions.

A. Below Market Rate Housing Plan. All requests for density bonuses, concessions and incentives, City incentives, parking reductions, and waivers provided pursuant to Sections 18.17.040 and 18.17.050 shall

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 34 be submitted with the below market rate housing plan required by Section 18.16.060(B). The builder shall include the following additional information in the below market rate housing plan:

1. A tentative map or site plan or both, drawn to scale, depicting the number and location of all market rate units, below market rate units, density bonus BMR units, and bonus units.

2. Summary table showing A calculation of the maximum number of dwelling units permitted by the City’s Zoning Ordinance and General Plan for the residential housing development, excluding any density bonus, proposed density bonus BMR units by income level, calculation of proposed bonus percentage, number of bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre..

3. The zoning and general plan designations and assessor's parcel number(s) of the housing development site. The targeted income level of the proposed density bonus BMR units.

4. A description of all dwelling units existing on the site in the five-year period preceding the date of submittal of the application and identification of any units rented in the five-year period. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units, if known. If any dwelling units on the site were rented in the five -year period but are not currently rented, the income and household size of residents occupying dwelling units when the site contained the maximum number of dwelling units, if known.

5. Description of any recorded covenant, ordinance, or law applicable to the site that restricted rents or prices to levels affordable to very-low or lower income households in the five-year period preceding the date of submittal of the application.

6. If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and reasonable documentation that each of the requirements included in California Government Code Section 65915, subdivision(g) can be met.

7. If the application proposes Description of any requested concessions or, incentives, waivers of development standards, or parking reductions requested pursuant to Section 18.17.050, the below market rate housing plan shall also include the following information:
a5. For all concessions and incentives except those listed in Section 18.17.050(C), a pro forma demonstrating that the requested concessions and incentives result in identifiable, financially sufficient, and actual cost reductions. The pro forma shall include: The City’s usual

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 35 regulatory requirement and the requested regulatory incentive, described both in writing and shown on the submitted site plans elevations, or other submitted plans, as appropriate. ba. Except where mixed-use zoning is proposed as a concession or incentive pursuant to Government Code Section 65915(k)(2), reasonable documentation to show that any requested incentive will result in identifiable and actual cost reductions to provide for affordable housing costs or rents. The actual cost reduction achieved through the concession or incentive; and
cb. If approval of mixed-use zoning is proposed, reasonable documentation that nonresidential land uses will reduce the cost of the housing development and that the nonresidential land uses are compatible with the housing development and the existing or planned development in the area where the proposed housing development will be located.

Evidence that the cost reduction allows the builder to provide affordable rents or affordable sales prices.

86. If the application proposes For waivers of development standards, the below market rate housing plan shall also include the following information:
a. The City’s usual development standard and the requested development standard, described both in writing and shown on the submitted site plans elevations, or other s ubmitted plans, as appropriate.
b. : evidence Reasonable documentation that the development standards for which the each waiver iss are requested will have the effect of physically precluding the construction of the residential housing development with at the density bonusies or with the, concessions, or incentives requested permitted by State Density Bonus Law.

7. The Administrator may require that any pro forma submitted pursuant to subsection (A)(5) of this section include information regarding capital costs, equity investment, debt service, projected revenues, operating expenses, and such other information as is required to evaluate the pro forma.

The cost of reviewing any required pro forma data, including but not limited to the cost to the City of hiring a consultant to review the pro forma, shall be borne by the builder.

8. If a mixed-use building or development is proposed, the builder shall provide evidence that nonresidential land uses will reduce the cost of the residential development, and t he nonresidential land uses are compatible with the residential development and existing or planned surrounding development.

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 36 9. If the application proposes a reduction of parking standards, the below market rate housing plan shall also include a table showing parking required by the zoning regulations, parking proposed under Section 65915, subdivision (p), and reasonable documentation that the project is eligible for the requested parking reduction. . If a density bonus is requested for a land donation, the below market rate housing plan shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that each of the findings included in Government Code Section 65915(g) can be made.

10. If a density bonus or concession is requested for a child care facility or condominium conversion, the below market rate housing plan shall provide evidence reasonable documentation that the findings in requirements of Government Code Section 65915(h) or 65915.5, as appropriate, can be made.

11. Other requested information included on the City’s application forms.

12. Payment of any fee in an amount set by resolution of the City Council for City costs necessary to determine compliance of the application with State Density Bonus Law.

B. City Review of Application for State Mandated Density Bonus, Concessions, and Incentives. Any request for a density bonus, concessions, incentives, waivers, or parking reductions provided pursuant to Sections 18.17.040 and 18.17.050 shall be submitted concurrently with the filing of the planning application for the first discretionary permit required for the housing development and shall be processed, reviewed, and approved or denied by the decision-making body (Planning Commission or City Council) concurrently with the below market rate housing plan required for the residential housing development.

The applicant shall be informed whether the application is complete consistent with Government Code Section 65943. In accordance with State law, neither the granting of a concession or incentive, nor the granting of a density bonus, shall be interpreted, in and of itself, to require a General Plan amendment, zoning code amendment, zoneing change, or other discretionary approval, .or the waiver of a city ordinance or provisions of a city ordinance unrelated to development standards.

C. Findings for Approval of Eligibility for State Mandated Density Bonus, Concessions, and Incentives, Waivers, and Parking Reductions. To ensure that an application for a housing development conforms with the provisions of State Density Bonus Law, the staff report presented to the decision-making body shall state whether the application conforms to the following provisions of State Density Bonus Law as applicable: Before approving an application that includes a request for a density bonus, incentive, concession, waiver, or parking reduction provided pursuant to Sections 18.17.040 and 18.17.050, the decision-making body shall make the following findings, as applicable:

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 37 1. The residential housing development is eligible for a density bonus and any concessions, incentives, waivers, or parking reductions requested and has complied with requirements for the replacement of units as required by State Density Bonus Law..

2. If an incentive or concession is requested, aAny requested incentive or concession will result in identifiable, financially sufficient, and actual cost reductions based upon appropriate financial analysis and documentation if required.to provide for affordable housing or costs or rents; except that, if a mixed-use development is requested, the application must instead meet all of the requirements of Government Code Section 65915, subdivision (k)(2).

3. If the density bonus is based all or in part on donation of land, the findings included in requirements of Government Code Section 65915(g) have been met.

4. If the density bonus, incentive, or concession, waiver, or parking reduction is based all or in part on the inclusion of a child care facility or, condominium conversion, the findings requirements included in Government Code Section 65915(h) or 65915.5, as appropriate, have been met.

5. If the incentive or concession includes mixed-use development, the findings included in Government Code Section 65915(k)(2).

6. If a waiver is requested, the housing development project is eligible for a waiver, and the development standards for which a waiver is requested would have the effect of physically precluding the construction of the residential housing development at the densities or with the density bonus, concessions, or incentives permitted.

D. Findings for Denial of Incentives, Concessions or Waivers.

1. Denial of Concessions and Incentives. If the findings required by subsection C of this section can be made, tThe decision-making body may deny a concession or incentive only if it makes a written finding, supported by substantial evidence, of either one any of the following:
a. The proposed incentive or concession does not result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for affordable rents, as defined in Health and Safety Code Section 50053, for the BMR density bonus units. The concession or incentive is not required to provide for affordable rents or affordable ownership costs. b. The concession or incentive would have a specific adverse impact upon public health or safety or the physical environment or on any real property that is listed in the California

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 38 Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low - and moderate-income households. For the purpose of this subsection, “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 that the application for the residential housing development was deemed complete. c. The concession or incentive would be contrary to State or Federal law.

2. Denial of Waivers. If the findings required by subsection C of this section can be made, tThe decision-making body may deny a waiver only if it makes a written finding, supported by substantial evidence, of either any of the following:
a. The waiver would have a specific adverse impact upon health or, safety,, or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, and identified, written public health or safety standards, policies, or conditions as they existed on the date that the application was deemed complete.
b. The waiver would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
c. The waiver would be contrary to State or Federal law.

3. Denial of Incentive or Bonus for Child Care Center. If the findings required by a child care center complies with the requirements of subsection (h) of subsection C of Government Code Section 65915, this section can be made, the decision-making body may deny a density bonus, incentive, or concession that is based on the provision of child care facilities only if it makes a written finding, based on substantial evidence, that the City already has adequate child care facilities. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly

18.204.060)

18.17.070 Requirements for density bonus below market rate units.

In addition to any requirements included in Sections 18.17.040 and 18.17.050, density bonus BMR units shall conform to the following provisions applicable to below market rate units:

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Attachment: Ordinance with Exhibit A - Proposed Changes (Red-Lined) (Amendments to the BMR Ordinance) 39 A. Below market rate unit standards (Section 18.16.050), except that for-rent density bonus BMR units that are affordable to very low- and low-income households that are not also BMR units required by Section 18.16.030 shall be affordable for thirty fifty-five years or as long a period of time as permitted by current law All for-sale density bonus BMR units shall be affordable in perpetuity. , unless a longer period of time is required by any construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program applicable to the residential development .

B. Compliance procedures (Section 18.16.060), except that the below market rate housing plan shall also include the provisions described in Section 18.17.040.A.

C. Eligibility for below market rate units (Section 18.16.080).

D. Owner-occupied below market rate units (Section 18.16.090).

E. Rental units (Section 18.16.100). (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.070)

18.17.080 Interpretation.

If any portion of this chapter conflicts with State Density Bonus Law or other applicable state law, state law shall supersede this chapter. Any ambiguities in this chapter shall be interpreted to be consisten t with State Density Bonus Law.

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Chapter 18.16
AFFORDABLE HOUSING PROGRAMS*
Sections:

18.16.010 Purpose.

18.16.020 Definitions.

18.16.030 Below market rate housing requirements.

18.16.040 Exemptions to below market rate housing requirements.

18.16.050 Below market rate unit standards.

18.16.060 Compliance procedures.

18.16.070 Alternatives.

18.16.080 Eligibility for below market rate units (owner-occupied and rental units).

18.16.090 Owner-occupied units.

18.16.100 Rental units.

18.16.110 Below market rate fund.

18.16.120 Periodic review and enforcement.

18.16.130 Waivers of affordable housing requirements. * Prior legislation: Ords. 1081, 1126 and 1263.

18.16.010 Purpose.

The purpose of this chapter is to:

A. Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the City as mandated by State law, California Government Code Section 65580 et seq.

B. Enhance the public health, safety, and welfare within the City. Requiring builders of new market rate housing to provide some housing affordable to very low-, lower-, and moderate-income households is also reasonably related to the impacts of such developments, because there is a need to offset the demand for affordable housing that is created by new development and mitigate environmental and other impacts that accompany new residential and commercial development by: protecting the economic diversity of the City’s housing stock; reducing traffic, transit, and related air quality impacts; promoting jobs/housing balance; and reducing the demands placed on transportation infrastructure in the region.

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C. Promote the City’s goal to add affordable housing units to the City’s housing stock in proportion to the overall increase in new jobs and housing units.

D. Support the Housing Element policy to consider use of funds for developments with a higher percentage of below market rate units or deeper affordability than otherwise is required.

E. Support the Housing Element policy to encourage accessory dwelling units as a form of affordable housing.

F. Support the Housing Element goal of assisting in the development of new housing that is affordable at all income levels and the policies and actions that support this goal.

G. Support the Housing Element goal of removing and/or mitigating potential governmental constraints to the provision of adequate, affordable housing and the policies and actions that support this goal.

H. Support the guiding principle of the Housing Element that housing in San Carlos supports an economically and socially diverse population.

I. Support the guiding principle of the Housing Element that housing in San Carlos create s and supports vibrant neighborhoods and a cohesive sense of community.

J. Meet the housing needs identified by the Housing Element of the General Plan.

K. Encourage the production of the very low-, low-, and moderate-income units planned for in the Housing Element of the General Plan.

L. Comply with the provisions of Government Code Section 65915 mandating the adoption of a City ordinance that specifies procedures for providing density bonuses and other incentives and concessions.

M. Provide and maintain affordable housing opportunities in the City through an affordable housing program for both ownership and rental housing, and, in furtherance of that goal, include rental affordable housing requirements in this chapter consistent with Government Code Sections 65850(g) and 65850.01.

N. Provide builders with alternatives to construction of below market rate units on the same site as the market rate residential development. Therefore, this chapter includes a menu of options from which a builder may select an alternative to the construction of below market rate units on the same site as the market rate residential development. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1550 § 2 (part), 2019: Ord.

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1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.010)

18.16.020 Definitions.

As used in this chapter and in Chapter 18.17, the following terms shall have the following meanings:

A. “Administrator” means the Housing Manager of the City or other person designated by the City Manager.

B. “Affordable ownership cost” means a sales price for a below market rate unit, based on a reasonable down payment, that results in a monthly housing cost (including mortgage principal and interest, property taxes, insurance, a reasonable allowance for utilities (pursuant to a schedule provided by the San Mateo County Housing Authority), parking, and homeowners’ association costs, if any) that does not exceed:

1. For very low-income households, one-twelfth of fifty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

2. For low-income households, one-twelfth of seventy percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

3. For moderate-income households, one-twelfth of one hundred ten percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty -five percent.

C. “Affordable rent” means monthly rent, including a reasonable allowance for utilities (pursuant to a schedule provided by the San Mateo County Housing Authority), parking, and any separately charged fees for use of the property for a below market rate unit that does not exceed:

1. For very low-income households, one-twelfth of fifty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

2. For low-income households, one-twelfth of sixty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

D. “Area median income” means the median household income for San Mateo County as published by the State of California pursuant to California Code of Regulations, Title 25, Section 6932, or successor provision.

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E. “Assumed household size based on unit size” means a househo ld of one person in a studio unit, two persons in a one-bedroom unit, three persons in a two-bedroom unit, and one additional person for each additional bedroom, unless the requirements of another funding source require an alternate method of calculating assumed household size.

F. “Below market rate housing agreement” means a written agreement between a builder and the City as provided by Section 18.16.060(C).

G. “Below market rate housing plan” means a plan for a residential development submitted by a builder as provided by Section 18.16.060(B).

H. “Below market rate incentives” means incentives provided by the City for below market rate (BMR) units and density bonus BMR units pursuant to Chapter 18.17.

I. “Below market rate (BMR) unit” means a dwelling unit that shall be offered at an affordable rent or affordable ownership cost to moderate-, low- and very low-income households and is required by the City pursuant to Section 18.16.030.

J. “Builder” means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities that seeks City approvals for all or part of a residential development.

K. “City” means the City of San Carlos.

L. “Density bonus” is as defined in Chapter 18.17.

M. “Density bonus below market rate (BMR) unit” is as defined in Chapter 18.17.

N. “First approval” means the first discretionary approval to occur with respect to a residential development, or, for residential developments not requiring a discretionary approval, the issuance of a building permit.

O. “Household” means one person living alone or two or more persons sharing residenc y whose income is considered for housing payments.

P. “In lieu fee” is as defined in Section 18.16.030(C).

Q. “Low-income household” means a household whose annual income does not exceed the qualifying limits set for lower-income households in Section 50079.5 of the California Health and Safety Code.

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R. “Market rate unit” means a dwelling unit in a residential development that is not a below market rate unit or a density bonus BMR unit or is not otherwise required by this chapter to be affordable to very low -, low-, or moderate-income households.

S. “Moderate-income household” means a household whose income does not exceed the qualifying limits set for persons and families of low or moderate income in Section 50093 of the California Health and Safety Code.

T. “Off-site below market rate unit” means a below market rate unit that will be built separately or at a different location than the residential development.

U. “On-site below market rate unit” means a below market rate unit that will be built at the same location as the residential development.

V. “Residential development” means any development project requiring any discretionary permit from the City, or a building permit, and which would create one or more additional dwelling units and/or lots by construction or alteration of structures, or by subdivision of existing lots, or which would add one thousand square feet or more to an existing dwelling unit. A residential development includes dwelling units that are part of a mixed-use development and the conversion of existing dwelling units to community housing subdivision ownership as defined in Chapter 17.48.

W. “Residential ownership development” means any residential development project that includes the creation of one or more residential dwelling units and/or lots that may be sold individually, or that would add one thousand square feet or more to an existing dwelling unit that may be sold individually. A residential ownership development also includes the conversion of existing dwelling units to community housing subdivision ownership as defined in Chapter 17.48.

X. “Residential rental development” means any residential development project that creates on e or more residential dwelling units that cannot be sold individually, or that would add one thousand square feet or more to an existing dwelling unit that cannot be sold individually.

Y. “Very low-income household” means a household whose income does not exceed the qualifying limits set for very low-income households in Section 50105 of the California Health and Safety Code. (Ord. 1550 § 2 (part), 2019: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.030)

18.16.030 Below market rate housing requirements.

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A. Residential Development. For all residential ownership developments of five (5) or more dwelling units, at least twenty percent (20%) of the total units shall be below market rate units restricted for sale to and occupancy by low-income households unless the residential development is exempt under Section 18.16.040. For all residential rental developments of seven (7) or more dwelling units, at least fifteen percent (15%) of the total units shall be below market rate units restricted for rent to and occupancy by low and very low-income households unless the residential development is exempt under Section 18.16.040. The number and type of below market rate units required for a particular residential development will be determined at first approval of the residential development in accordance with the provisions of Section 18.16.060. If a change in the residential development design results in a change in the total number of units, the number of below market rate units required will be recalculated to coincide with the final approved project.

1. Residential Ownership Development. At least twenty percent (20%) of the total units in a residential ownership development shall be below market rate units affordable to low-income households unless an alternative is approved as described in Section 18.16.070.

2. Residential Rental Development. At least fifteen percent (15%) of the total units in a residential rental development shall be below market rate units, of which ten percent (10%) shall be affordable to very low-income households and five percent (5%) affordable to low-income households unless an alternative is approved as described in Section 18.16.070. Projects may alternatively, but are not required to, designate fifteen percent (15%) of the units as affordable to very low-income households in order to maximize the benefits allowed by the State Density Bonus Law, Government Code Section 65915.

B. Calculation. In determining the number of whole below market rate units required, calculations shall be based on the number of dwelling units in the residential development, excluding any units above the otherwise maximum allowable density that are approved pursuant to the State Density Bonus Law, Government Code Section 65915 et seq. Any decimal fraction less than one-half (0.5) shall be rounded down to the nearest whole number, and any decimal fraction of one-half (0.5) or more shall be rounded up to the nearest whole number.

C. In Lieu Fee. Under the circumstances specified in this subsection, the below market rate housing requirements in subsection A of this section may be satisfied by the payment of a fee to the City in lieu of constructing the below market rate units within the residential development.

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1. For a residential ownership development of one (1) dwelling unit, or for an addition of one thousand (1,000) square feet or more to an existing dwelling unit that may be sold individually, the builder shall pay an in lieu fee or construct an accessory dwelling unit consistent with Section 18.23.210, Accessory dwelling units/junior accessory dwelling units.

2. For a residential development that creates one (1) additional lot, or two (2) to six (6) rental dwelling units and/or lots, or two (2) to four (4) ownership dwelling units and/or lots, or for a residential development that triggers a decimal fraction of less than one-half (.50), the builder shall pay an in lieu fee for the fractional unit requirement or build a below market rate unit affordable to a low-income household.

3. The in lieu fee may be established from time to time by resolution of the City Council or may be determined for a specific residential development through the preparation of an affordability gap analysis that will determine the difference between the affordable sales price or rent and the fair market value for the unit, but in no event shall the in lieu fee exceed the cost of mitigating the impact of market rate units in a residential development on the need for affordable housing in the City.

4. Nothing in this chapter or Chapter 18.17 shall deem or be used to deem the in lieu fee authorized pursuant to this subsection C as an ad hoc exaction or as a mandated fee required as a condition to developing property. Any in lieu fee adopted by the City Council is a menu option that may serve as an alternative to the on-site below market rate housing requirements set forth in this chapter.

D. Below Market Rate Units Eligible for State Density Bonus. If a residential development receives a density bonus pursuant to Government Code Section 65915, any density bonus BMR unit and any dedication of property that made the residential development eligible for the density bonus that also satisfies the requirements of this chapter shall be counted as below market rate units pursuant to this chapter. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1550 § 2 (part), 2019: Ord. 1438 § 4 (Exh. A (part)), 2011:

Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.040)

18.16.040 Exemptions to below market rate housing requirements.

The requirements of Section 18.16.030 do not apply to:

A. Residential development of a legal accessory dwelling unit consistent with Section 18.23.210, Accessory dwelling units/junior accessory dwelling units.

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B. The reconstruction of any dwelling units that have been destroyed by fire, flood, earthquake or other act of nature; provided, that the reconstruction of the site does not increase the number of legally constructed dwelling units or increase the area of the legally constructed dwelling units by one thousand (1,000) square feet or more.

C. Additions to existing dwelling units of less than one thousand (1,000) square feet.

D. Residential developments that already have more deed-restricted units that are affordable to moderate-, low- and very low-income households than Section 18.16.030 requires. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.050)

18.16.050 Below market rate unit standards.

Below market rate units built under Section 18.16.030 shall conform to the following standards:

A. Design. Except as otherwise provided in this chapter, and subject to the approval of the Administrator, below market rate units shall be evenly dispersed by floor and general location throughout a residential development and, consistent with Health & Safety Code Section 17929, may not be isolated to a specific floor or area on a specific floor and must have the same access to the common entrances to a structure as the market-rate units. Below market rate units may have different interior finishes and features than market rate units in the same residential development, so long as the finishes and features are durable, of good quality, compatible with the market rate units, and consistent with contemporary standards for new housing. Below market rate units must in aggregate be no smaller in average size than market rate units in the same residential development and the number of bedrooms in below market rate units shall be in the same proportion as in the total number of units in the residential development.

B. Timing. All below market rate units shall be constructed and occupied concurrently with or prior to the construction and occupancy of market rate units, and in phased residential developments, below market rate units may be constructed and occupied in proportion to the number of units in each phase of the residential development, unless an alternative phasing plan is approved as part of the below market rate housing plan for the residential development.

C. Duration of Affordability Requirement. Below market rate units produced under this chapter and Chapter 18.17 shall be legally restricted to occupancy by households of the income levels for which the units were designated in perpetuity. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.060)

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D. Parking. Below market rate units must be provided parking spaces at a ratio equivalent to the distribution of parking spaces among market rate units for an equivalent bedroom size (for instance, if 1.5 parking spaces on average are provided for each two-bedroom market rate unit, then the two-bedroom below market rate units must be provided 1.5 parking spaces on average). Any fractional result must be rounded up. For residential ownership developments, any additional cost for the parking spaces must be included in calculating the affordable ownership cost for the below market rate units. For residential rental developments, any additional cost for the parking spaces must be included in calculating the affordable rent for the below market rate units.

18.16.060 Compliance procedures.

A. General. Approval of a below market rate housing plan and recordation of an approved below market rate housing agreement prior to the recordation of any final or parcel map, or, if no final or parcel map is required, prior to issuance of any building permit, is a condition of the first approval of any residential development to which Section 18.16.030 applies. This section does not apply to exempt projects or to residential developments where the requirements of Section 18.16.030 are satisfied by payment of a fee under Section 18.16.030(C).

B. Below Market Rate Housing Plan. The decision-making body for the first approval (either the Planning Commission or the City Council) shall approve, conditionally approve or reject the below market rate housing plan. No application for a first approval for a residential development to which Section 18.16.030 applies shall be deemed complete until a below market rate housing plan, in a form satisfactory to the Administrator, is deemed complete by the Administrator. The below market rate housing plan shall include:

1. The location, structure (attached, semi-attached, or detached), proposed tenure (for sale or rental), number of bedrooms, and size of the proposed market rate and below market rate units and the basis for calculating the number of below market rate units;

2. A floor or site plan depicting the location of the market rate and below market rate units and the location of the common entrances;

3. The income levels to which each below market rate unit will be made affordable;

4. The same information for any below market rate units provided to meet other requirements of state law, including but not limited to density bonus law, Government Code Section 65915;

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streamlined approval (SB 35; Government Code section 65913.4); or the Housing Crisis Act of 2019 (Government Code Section 66300).

5. For a phased residential development, a phasing plan that provides for the timely development of the number of below market rate units proportionate to each proposed phase of development, or with an alternative phasing plan;

6. A description of any below market rate incentive requested pursuant to Chapter 18.17;

7. Any alternative means designated in Section 18.16.070(A) proposed for the residential development, along with information necessary to support the findings required by Section 18.16.070(B) for approval of such alternatives;

8. Builder’s agreement to conform to the provisions of this chapter, including but not limited to the provisions of Sections 18.16.080 through 18.16.100; and

9. Any other information reasonably requested by the Administrator to assist with evaluation of the below market rate housing plan under the standards of this chapter.

C. Below Market Rate Housing Agreement. The forms of the below market rate housing agreement and any resale and rental restrictions, deeds of trust, options to purchase, and other documents authorized by this subsection, and any change in the form of any such document which materially alters any policy in the document, shall be approved by the Administrator and the City Attorney or his or her designee prior to being executed with respect to any residential development prior to the recordation of any final or parcel map, or, if no final or parcel map is required, prior to issuance of any building p ermit. The form of the below market rate housing agreement will vary, depending on the manner in which the provisions of this chapter are satisfied for a particular development. All below market rate housing agreements shall include, at minimum, the following:

1. Description of the residential development, including whether the below market rate units will be rented or owner-occupied;

2. The number, size, number of bedrooms, and location of all below market rate units;

3. Below market rate incentives granted by the City, if any, pursuant to Chapter 18.17;

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4. Provisions and/or documents for resale restrictions, deeds of trust, options to purcha se, rental restrictions, or other documents as appropriate;

5. Provisions for monitoring the ongoing affordability of the units, and the process for qualifying prospective resident households for income eligibility;

6. Formula for calculating affordable rent and/or affordable ownership cost and the proposed initial sales price for the below market rate units, any density bonus BMR units, and any very low or low income housing units required to meet any other requirements of state law, including but not limited to density bonus law, Government Code Section 65915; streamlined approval (SB 35; Government Code section 65913.4); or the Housing Crisis Act of 2019 (Government Code Section 66300) as applicable;

7. Builder’s agreement to conform to the provisions of this chapter, including but not limited to the provisions of Sections 18.16.080 through 18.16.100; and

8. Any additional obligations relevant to the compliance with this chapter.

If a builder chooses to satisfy all or a portion of the below market rate requirement with rental units, as permitted by Government Code Section 65589.8, then the below market rate housing agreement shall include the builder’s agreement to the limitations on rents and applicable terms and conditions required by Section 18.16.030(C).

D. Recording of Agreement. Prior to the recordation of any final or parcel map for a residential development, or, if no final or parcel map is required, prior to issuance of any building permit for a residential development, below market rate housing agreements that are approved and fully executed shall be recorded against residential developments containing below market rate units. Addition al rental or resale restrictions, deeds of trust, options to purchase, and/or other documents acceptable to the Administrator shall also be recorded at the time of sale against owner-occupied below market rate units.

In cases where the requirements of this chapter are satisfied through the development of off-site below market rate units, the below market rate housing agreement shall simultaneously be recorded against the property where the off-site below market rate units are to be developed.

E. Amendments. Modifications to the below market rate housing plan shall be considered a change in the approved conditions of approval and processed in the same manner as the original below market rate

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housing plan. (Ord. 1550 § 2 (part), 2019; Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.070)

18.16.070 Alternatives.

A. Builder Proposal. A builder may propose an alternative means of compliance in a below market rate housing plan required by Section 18.16.060(B) according to the following provisions. The builder may also partner with a nonprofit affordable housing provider to meet its below market rate housing obligations through one of the alternatives set forth in this section.

1. Provision of a Greater Level of Affordability. The builder may propose a greater level of affordability than required under this chapter and reduce the total number of units otherwise required.

2. Off-Site Construction. Below market rate units may be proposed off-site within the City limits if the proposal meets all of the following conditions:
a. The off-site construction proposal would result in a minimum of ten percent more total below market rate units than required by this chapter.
b. The below market rate units will be located in an area where, based on the availability of affordable housing, the decision-making body finds that the need for such units is greater than the need in the area of the proposed development.
c. The off-site location is suitable for the proposed below market rate housing, consistent with any adopted guidelines and the housing element, and will not tend to cause residential segregation or concentrations of poverty.
d. If the builder proposes to provide rental off-site below market rate units in place of ownership on- site below market rate units, the rental off-site below market rate units shall meet the affordability and other requirements specified in Section 18.16.030. e. Off-site below market rate units shall meet or exceed minimum quality standards specified in conditions of approval and may include any combination of new dwelling units, new dwelling units created in existing structures, or the preservation of existing affordable units at risk of loss or by conversion of existing market rate units to below market rate units if the preservation or conversion of these units is consistent with Government Code Section

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65583.1 and allows the City to use the preserved or converted units to help meet its regional housing needs allocation.

The following information, to the satisfaction of the Administrator, is required for submittal of a proposal for off-site below market rate units:
a. If the off-site below market rate units will not be constructed concurrently with the market rate units, the builder shall specify the security to be provided to the City to ensure that the below market rate units will be constructed in a timely manner, including evidence of ownership or control of any sites proposed for the below market rate units, to the satisfaction of the Administrator, and clear and convincing evidence that financing has been secured for the off-site below market rate units.
b. For preservation of existing affordable units at risk of loss or conversion of existing market rate units to below market rate units:
i. Existing rent or appraised value of each unit on the property to be converted, proposed rents or sales prices after conversion or preservation, and any existing rent limits, resale price restrictions, or other affordability restrictions imposed by any public agency, nonprofit agency, land trust, or other body.
ii. Size of households occupying each unit on the property to be converted, vacancy rates for each month during the past two years, and existing tenant incomes. iii. A property inspection report prepared by a certified housing inspector and a termite report, both prepared no more than sixty days before the filing of the application. The property inspection report shall include a full examination of all common and private areas within the existing dwelling units for compliance with applicable building codes. iv. Plans and a written description of rehabilitation to be completed, including correction of all code violations and completion of all termite repairs described in the property inspection report and termite report; cost of rehabilitation; and the appraised value of the property, including land, buildings, and all other improvements, after rehabilitation.

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v. Description of benefits to be offered existing tenants, including but not limited to right of first refusal to remain in the unit, and required relocation assistance for existing tenants.
vi. Evidence that the proposal complies with the provisions of Government Code Section 65583.1 and that the City may utilize the units to help meet its regional housing needs allocation.

3. Land Dedication. Below market rate units may be proposed off-site within the City limits if the proposal meets all of the following conditions:
a. The land dedication proposal would result in a minimum of ten percent more total below market rate units than required by this chapter.
b. The dedicated land is located either on the site of the housing development or in an area where, based on the availability of affordable housing, the decision-making body finds that the need for such units is greater than the need in the area of the proposed development. c. The dedicated land is suitable for the proposed below market rate housing, consistent with any adopted guidelines and the housing element, and will not tend to cause residential segregation or concentrations of poverty.
d. The affordable housing to be built on the dedicated land shall meet or exceed minimum quality standards specified in this chapter.

The builder shall specify the security to be provided to the City to ensure that the below market rate units will be constructed on the dedicated land in a timely manner, including evidence of ownership or control of the sites to be dedicated, to the satisfaction of the Administrator, and clear and convincing evidence that financing has been secured for the construction of the below market rate units on the dedicated land. Prior to issuance of any building permit for the residential development, the property shall either be dedicated to the City or to the developer of the below market rate units on the dedicated land, as determined by the City.

4. Preservation of Historically Significant Structures and Resources. Adjustments may be made to the required number and affordability level of the below market units based on the economics associated with preservation of historically significant structures and resources as identified under guidelines as set forth by the California Environmental Quality Act (CEQA).

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5. Rental Units in Place of Ownership Units. The builder may propose rental on -site below market rate units in a residential ownership development rather than sell below market rate units. If the builder proposes this alternative, then at least fifteen percent of the total units (excluding any units approved beyond the otherwise maximum allowable density pursuant to the State Density Bonus Law) shall be below market rate units which meet the standards set forth in Section 18.16.030 for residential rental developments.

6. Combination. The decision-making body may accept any combination of the above options.

B. Findings. The decision-making body for the first approval may approve, conditionally approve or reject any alternative proposed by a builder as part of a below market rate housing plan. Any approval or conditional approval shall be based on the following finding:

1. That the purposes of this chapter would be better served by implementation of the proposed alternative(s) and that the proposal meets the greatest community needs at the time the alternative is reviewed. As one of the factors determining whether the purposes of this chapter would be better served under the proposed alternative, the decision-making body shall consider whether implementation of an alternative would cause or exacerbate racial segregation and, if so, shall reject the alternative. (Ord. 1550 § 2 (part), 2019; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.080)

18.16.080 Eligibility for below market rate units (owner-occupied and rental units).

A. General Eligibility. If the City or its designee maintains a list of eligible households, initial and subsequent occupants will be selected first from the list of eligible households, to the maximu m extent possible, in accordance with any rules approved by the Administrator.

B. Preferences. Preferences will be given to those households where at least one member in the household lives or works in San Carlos, including part-time and household workers, or works for a public agency, such as a school district or fire district, serving residents living in the City of San Carlos, except for those households deemed ineligible due to conflict of interest listed in subsection C of this section.

C. Conflict of Interest. The following individuals are ineligible to purchase or rent a below market rate unit as specified below:

1. Elected City Council officials and all Planning Commissioners (including their spouses and dependents);

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2. All City staff members (including their spouses and dependents) who participated in the approval process for the residential development or who establish policy for City housing programs;

3. The builder and its officers and employees (and their spouses and dependents); and

4. The project or land owner of the residential development and its officers and employees (and their spouses and dependents).

D. Occupancy. Any household which occupies a rental below market rate unit or purchases a below market rate unit shall occupy that unit as its principal residence and shall not lease or sublease to a different party. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.100)

18.16.090 Owner-occupied units.

A. Initial Sales Price for Below Market Rate Units. The initial sales price of a below market rate unit shall be set by the City at the time a building permit is issued for the below market rate unit so that the eligible household will pay an affordable ownership cost. The initial sales price shall be based on the builder’s estimate of homeowners’ association dues, if any, the City’s assumptions for interest rates and other factors, and the formula for calculating sales prices contained in the below market rate housing agreement. The City shall provide the builder with an estimate of the initial sales price for the below market rate units at an earlier date upon written request by the builder. After the building permit is issued, the initial sales price may be adjusted by the City due to changes in market factors upon written request by the builder no less than ninety days prior to marketing of the below market rate units. In no case will the initial sales price be adjusted below the initial sales price calculated when the building permit was issued.

B. Certification of Eligibility. The income of each household proposed to purchase a below market rate unit shall be certified to the City or the City’s designee prior to the sale of a below mark et rate unit. Each household shall provide written verification of income, including but not limited to such documents as income tax returns for the previous calendar year, W-2 statements, and pay stubs. Income verification shall be submitted on a form approved by the City.

C. Initial Sales Deed Restrictions. Deed restrictions provided by the City and recorded against title to the below market rate unit shall be required as a condition of sale for all owner-occupied below market rate units and shall include, but are not limited to, the City’s purchase option, resale restrictions, and procedures and policies regarding changes in title to ensure that owner-occupied below market rate units

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remain affordable in perpetuity. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010:

Ord. 1340 § 1 (part), 2004. Formerly 18.200.110)

18.16.100 Rental units.

A. Initial Rents for Below Market Rate Units. The initial rent of below market rate units shall be set by the City at least thirty days prior to marketing of the below market rate units so that the eligible households will pay an affordable rent. The initial rent shall be based on a schedule provided by the San Mateo County Housing Authority and the formula for calculating rents contained in the below market rate housing agreement. The City shall provide the builder with an estimate of the initial rent for the below market rate units at an earlier date upon written request by the builder.

B. Selection of Tenants. Rental units will be offered to eligible households at an affordable rent. If no eligible households are identified by the City pursuant to Section 18.16.080, the owners of rental below market rate units shall fill vacant units by selecting income-eligible households from the San Mateo County Office of Housing Section 8 Housing Choice Voucher program or similar program. If no eligible households are identified from the County program or similar program, owners may fill vacant units through their own selection process; provided, that they publish notice of the availability of below market rate units according to guidelines established by the Administrator.

C. Certification of Eligibility. The owner of rental below market rate units shall certify each tenant household’s income to the City or City’s designee at the time of initial rental and annually thereafter. The owner shall obtain and review documents from each tenant household that provide written verification of income, including but not limited to such documents as income tax returns for the previous calendar year, W-2 statements, and pay stubs. Income verification shall be submitted on a form approved by the City.

D. Nondiscrimination. When selecting tenants, the owners of below market rate units shall follow all fair - housing laws, rules, regulations, and guidelines. The owner shall apply the same rental terms and conditions to tenants of below market rate units as are applied to all other tenants, except as required to comply with this chapter (for example, rent levels and income requirements) or with other applicable government subsidy programs.

E. Move-In Costs. Total deposits, including security deposits, required of households occupying a below market rate unit shall be limited to first and last month’s rent plus a cleaning deposit not to exceed one month’s rent.

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F. Annual Report. The owner shall submit an annual report summarizing the occupancy of each below market rate unit for the year, demonstrating the continuing income eligibility of each tenant, and the rent charged for each below market rate unit. The Administrator may require additional information to confirm household income and rents charged for the unit if he or she deems it necessary.

G. Periodic Audit. The City maintains the right to periodically audit the information supplied to the City for the annual report if deemed necessary to ensure compliance with this chapter. In addition, owners of below market rate units shall cooperate with any audits conducted by the City, State agencies, Federal agencies, or their designees.

H. Rent Regulatory Agreements. A rent regulatory agreement provided by the City shall be recorded against any residential rental development prior to final inspection or issuance of any certificate of occupancy for any dwelling unit in the residential development. The rent regulatory agreement shall include the developer’s agreement to rent the below market rate units at affordable rents in perpetuity.

The rent regulatory agreement shall include, but not be limited to, the limitations on rents required by this section, provisions for selection of tenants and tenant eligibility, provisions for nondiscrimination and monitoring, and other provisions required to ensure compliance with this chapter.

I. Changes in Tenant Income. If, after moving into a below market rate unit, a tenant’s household income exceeds the limit for that unit, the following shall apply:

1. If the tenant’s income does not exceed the income limits of other below market rate units in the residential development, the owner may, at the owner’s option, allow the tenant to remain in the original unit and re-designate the unit as affordable to households of a higher income level, as long as the next vacant unit is redesignated for the income category previously applicable to the tenant’s household. Alternatively, if a below market rate unit meeting the tenant’s revised income threshold becomes available within six months and the tenant meets the income eligibility for that unit, the owner shall allow the tenant to apply for that unit.

2. If there are no units designated for a higher income category within the residential development that may be substituted for the original unit, the owner may raise the tenant’s monthly rent to an amount, net of utilities, that is the lesser of rent for a comparable market rate unit in the residential development or one-twelfth of thirty percent of the tenant’s household income. Upon vacancy by the tenant, the unit must be rented to a household in the income category previously applicable to the unit.

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3. If the tenant’s income exceeds the income designated for all below market rate units in the residential development, the tenant shall be given six months’ notice to vacate the unit. If within those six months another unit in the residential development is vacated, the owner may, at the owner’s option, allow the tenant to remain in the original unit, increase the rent to that for a comparable market rate unit in the residential development, and designate the ne wly vacated unit as a below market rate unit affordable at the income level previously applicable to the unit converted to market rate. The newly vacated unit shall be comparable in size (for example, number of bedrooms, bathrooms, square footage, etc.) to the original unit. (Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004.

Formerly 18.200.120)

18.16.110 Below market rate fund.

A. Trust Fund. A fund for the deposit of fees established under this and similar prior municipal codes exists as Fund 29 (the “fund”). This fund shall receive all fees contributed under this chapter and may also receive monies from other sources.

B. Purpose and Limitations. Monies deposited in the fund shall be used to increase and improve the supply of housing affordable to moderate-, low-, very low-, and extremely low-income households. Monies may also be used to cover reasonable administrative or related expenses associated with the administration of this chapter.

C. Administration. The fund shall be administered by the Administrator, who may develop procedures to implement the purposes of the fund consistent with the requirements of this chapter and subject to any adopted budget of the City.

D. Expenditures. Fund monies shall be used in accordance with the City’s Housing Element, or subsequent plans adopted by the City Council to maintain or increase the quantity, quality, and variety of affordable housing units or assist other governmental entities, private organizations or individuals to do so. Permissible uses include, but are not limited to, land acquisition, debt service, parcel assemblage, gap financing, housing rehabilitation, grants, unit acquisition, new construction, and other p ursuits associated with providing affordable housing. The fund may be used for the benefit of both rental and owner-occupied housing. (Ord. 1480 (Exh. C (part)), 2015: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.130)

18.16.120 Periodic review and enforcement.

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A. Periodic Review. It is the intent of the City Council to review the provisions of this chapter concurrently with the review of the City’s Housing Element, including provisions for income targeting, funding priorities, fees, and other provisions, to ensure that such provisions are economically feasible and are designed to serve the community’s highest priorities for the provision of affordable housing.

B. Penalty for Violation. It shall be a misdemeanor to violate any provision of this chapter. Without limiting the generality of the foregoing, it shall also be a misdemeanor for any person to sell or rent to another person a below market rate unit or density bonus BMR unit at a price or rent exceeding the maximum allowed under this chapter or Chapter 18.17 or to sell or rent a below market rate unit or density bonus BMR unit to a household not qualified under this chapter. It shall further be a misdemeanor for any person to provide false or materially incomplete information to the City or to a seller or lessor of a below market rate unit or density bonus BMR unit to obtain occupancy of housing for which he or she is not eligible.

C. Legal Action. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this chapter, including:

1. Actions to revoke, deny or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval;

2. Actions to recover from any violator of this chapter civil fines, restitution to prevent unjust enrichment from a violation of this chapter, and/or enforcement costs, including attorneys’ fees;

3. Eviction or foreclosure; and

4. Any other appropriate action for injunctive relief or damages. Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any person, owner, hous ehold or other party from the requirements of this chapter. (Ord. 1480 (Exh. C (part)), 2015: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.140)

18.16.130 Waivers of affordable housing requirements.

A. Requests for waivers shall be made concurrent with application submittal. As part of an application for the first approval of a residential development, a builder may request that the requirements of this chapter be reduced, adjusted, or waived based upon a showing that applying the requirements of this chapter would result in an unconstitutional taking of property or would result in any other unconstitutional result. Any such request shall be submitted concurrently with the below marke t rate housing plan required

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by this chapter. The builder shall set forth in detail the factual and legal basis for the claim, including all supporting technical documentation, and shall bear the burden of presenting the requisite evidence to demonstrate the alleged unconstitutional result. The City may assume each of the following when applicable:

1. The builder will benefit from the incentives set forth in the municipal code; and

2. If required to provide below market rate units, the builder will provide the most economical affordable housing units feasible in terms of financing, construction, design, location and tenure.

B. The City Council, based upon legal advice provided by or at the behest of the City Attorney, may approve a reduction, adjustment, or waiver if the Council determines that applying the requirements of this chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. The reduction, adjustment, or waiver may be approved only to the extent necessary to avoid an unconstitutional result after adoption of written findings, based on legal analysis and the evidence. If a reduction, adjustment, or waiver is granted, any change in the residential development shall invalidate the reduction, adjustment, or waiver, and a new application shall be required for a reduction, adjustment, or waiver. (Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010. Formerly 18.200.150)

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Chapter 18.17

AFFORDABLE HOUSING INCENTIVES
Sections:

18.17.010 Purpose.

18.17.020 Definitions.

18.17.030 City incentives for below market rate units.

18.17.040 State mandated density bonuses.

18.17.050 State mandated concessions and incentives, waivers, and parking reductions.

18.17.060 Review procedures for State mandated density bonuses, concessions, incentives , waivers, and parking reductions.

18.17.070 Requirements for density bonus below market rate units.

18.17.010 Purpose.

The purpose of this chapter is to provide procedures for granting incentives for the construction of affordable housing to encourage the production of affordable housing and to achieve the f ollowing additional goals:

A. Housing Element Goals and Policies. To implement goals and policies contained in the Housing Element providing for incentives for the construction of affordable housing.

B. Compliance with State Law. To comply with the provisions of Government Code Section 65915 et seq. (“State Density Bonus Law”), which mandates the adoption of a City ordinance specifying procedures for providing the density bonuses and other incentives and concessions required by th ose sections. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.010)

18.17.020 Definitions.

Terms defined in Section 18.16.020 shall have the same meaning in this chapter. In addition, the following terms shall have the following meanings when used in this chapter:

A. “Bonus units” means dwelling units allowed pursuant to Section 18.17.030(A) or Section 18.17.040 that exceed the otherwise allowable maximum gross residential density for a housing development.

B. “Concessions and incentives” means regulatory concessions and incentives as defined by Government Code Section 65915(k).

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C. “Density bonus” means a density increase over the otherwise allowable maximum gross residential density for a housing development, pursuant to Section 18.17.030(A) or Section 18.17.040.

D. “Density bonus below market rate (BMR) unit” means a dwelling unit that is offered at an affordable rent or affordable ownership cost to moderate-, low- or very low-income households; and qualifies a housing development for a density bonus pursuant to Section 18.17.040.

E. “Development standard” means a site or construction condition that applies to a housing development pursuant to any ordinance, General Plan element, specific plan, or other local condition, law, policy, resolution, or regulation. A “site and construction condition” is a development regulation or law that specifies the physical development of a site and buildings on the site in a housing development.

F. “Maximum allowable gross residential density” means the maximum number of dwelling units permitted in a housing development by the City’s Zoning Ordinance and by the Land Use Element of the General Plan on the date that the application for the housing development is submitted, excluding any density bonus. If the maximum density allowed by the Zoning Ordinance is inconsistent with the density allowed by the Land Use Element of the General Plan, the Land Use Element density shall prevail.

G. “Senior citizen housing development” means a housing development with at least thirty-five dwelling units, meeting the definition of a senior citizen housing development set forth in California Civil Code Section 51.3 or a mobile home park that limits residency based on age requirements pursuant to Section 798.76 or 799.5 of the Civil Code. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.020)

18.17.030 City incentives for below market rate units.

The incentives provided by this section are available to housing developments that provide on-site below market rate units in compliance with Chapter 18.16. Housing developments which have been granted a density bonus pursuant to Section 18.17.040 are not eligible for the City density bonus described in subsection A of this section but may be granted another incentive included in this section as a concession or incentive granted pursuant to Section 18.17.050.

A. City Density Bonus.

1. Bonus for Owner-Occupied Units: Upon the discretionary issuance of a conditional use permit by the Planning Commission, residential owner-occupied developments with one or more on-site below market rate units that are affordable to low-income households, or to a lower income

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category, may be granted one additional unit for each unit affordable to low -income households or to a lower income category. This density bonus shall not apply to single-family residential developments and is an alternative to density bonuses allowed under California Government Code Section 65915 and Section 18.17.040.

2. Bonus for Rental Units: Upon the discretionary issuance of a conditional use permit by the Planning Commission, residential rental developments with one or more on-site below market rate units that are affordable to low-income households may be granted two additional units for each unit affordable to low-income households. Residential rental developments with one or more on-site below market rate units that are affordable to very low-income households, or to a lower income category, may be granted four additional units for each unit affordable to very low-income households or to a lower income category. This density bonus shall not apply to single-family residential developments and is an alternative to density bonuses allowed under California Government Code Section 65915 and Section 18.17.040.

B. Modified Development Standard Calculations. Bonus unit(s) approved under the density bonus incentive described in subsection A of this section shall be exempted from floor area ratio and density requirements. In addition, the bonus unit(s) will not be counted in determining the required number of below market rate units.

C. Flexible Parking Standards. Residential developments with one or more on -site below market rate units shall be allowed limited reductions in the parking requirements related to any dwelling units or allowed limited use of tandem and/or shared parking arrangements or allowed a combination of these modified parking standards.

D. Flexible Setback Allowance. Residential developments with one or more on -site below market rate units may be allowed limited reductions in the minimum setback requirements if the following findings are made through the design review process:

1. That the proposed alternative design at the proposed location will not be detrimental or injurious to improvements in the vicinity and will not be detrimental to the public health, peace, safety, comfort, general welfare or convenience; and

2. The proposed alternative design shall not significantly reduce the privacy of the adjoining property owners or significantly reduce sunlight into adjoining properties.

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E. Permit Streamlining. In certain zoning districts, the requirement of a conditional use permit for dwelling units above the ground floor may be eliminated for residential developments with one or more on-site below market rate units.

F. Financial Assistance. To the extent budgeted by the City Council and otherwise available, financial assistance from the City or from sources as may be available to the City may be available to the builder in the form of loans or grants for the below market rate housing component of the residential development.

The builder shall be responsible for complying with all requirements associated with the particular funding source(s), including any requirements imposed by the State for payment of prevailing wages. Rental residential developments that offer the deepest affordability and which lack alternative funding sources shall be given the highest priority for financial assistance, in particular, rental residential developments affordable to very low- and low-income households.

G. Below Market Rate Housing Plan. All requests for City incentives provided pursuant to this sec tion shall be submitted with the below market rate housing plan required by Section 18.16.060(B). The builder shall include the following additional information in the below market rate housing plan:

1. A site plan depicting the number and location of all market rate, below market rate and bonus units.

2. A calculation of the maximum number of dwelling units permitted by the City’s Zoning Ordinance and General Plan for the residential development, excluding any density bonus.

3. Description of any City incentives requested pursuant to this section. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.030)

18.17.040 State mandated density bonuses.

A. Eligibility for Density Bonus. A “housing development” as defined in State Density Bonus Law shall be eligible for a density bonus and other regulatory incentives that are provided by State Density Bonus Law when the builder seeks and agrees to provide affordable and other types of housing in the threshold amounts specified in State Density Bonus Law. A “housing development” includes only the residential component of a mixed-use project.

B. Calculation of State Mandated Density Bonus.

1. The amount of density bonus to which a housing development is entitled shall be as specified in State Density Bonus Law. Each housing development is entitled to only one density bonus,

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which may be selected on the basis of only one category, as described in the subparagraphs of Government Code Section 65915(b)(1). Density bonuses from more than one category may not be combined.

2. When calculating the number of permitted bonus units, any calculations resulting in fractional units shall be rounded to the next larger whole number, including base density and bonus density.

3. The bonus units shall not be included when determining the number of density bonus BMR units required to qualify for a density bonus. When calculating the required number of density bonus BMR units, any calculations resulting in fractional units shall be rounded to the next larger integer.

4. The builder may request a lesser density bonus than the housing development is entitled to, but no reduction will be permitted in the minimum percentages of required density bonus BMR units pursuant to State Density Bonus Law. Regardless of the number of density bonus BMR units, no housing development may be entitled to a density bonus of more than that authorized by State Density Bonus Law.

18.17.050 State mandated concessions and incentives, parking reductions, and waivers.

A. Eligibility for Concessions and Incentives. A builder may request concessions and incentives pursuant to this section only when the builder is eligible for a State density bonus pursuant to Section 18.17.040. The number of incentives that may be requested shall be based upon the number the applicant is entitled to pursuant to State Density Bonus Law.

B. Concessions Not Requiring Evidence of Cost Reduction from Applicant. The following concessions and incentives shall be available to the builder without any requirement that the builder submit reasonable documentation to the City demonstrating that the requested concession or incentive results in identifiable and actual cost reductions:

1. A reduction in the usable open space requirement;

2. An increase in the maximum lot coverage requirement;

3. A reduction in minimum lot dimensions;

4. A reduction in minimum distance between buildings;

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5. A reduction in landscaping area requirements;

6. Deferral until occupancy of development impact fees;

7. Any of the City incentives listed in Section 18.17.030(A) through (E), inclusive.

C. Concessions Requiring Evidence of Cost Reduction from Applicant. All other concessions and incentives shall require the builder to demonstrate to the City Council through the provision of reasonable documentation that the requested concession or incentive results in identifiable and actual cost reductions to the housing development to provide for affordable housing costs or rents.

D. Parking Reduction. If a housing development is eligible for a density bonus pursuant to Section 18.17.040(A), the builder may request an on-site vehicular parking ratio that does not exceed the number of spaces specified in Government Code Section 65915(p). A builder may request this parking reduction in addition to concessions and incentives permitted by subsection A of this section.

E. Waiver. Applicants may seek a waiver of any development standards that will have the effect of physically precluding the construction of a housing development that is eligible for a density bonus pursuant to Section 18.17.040(A) at the densities or with the concessions and incentives permitted by Section 18.17.040 or Section 18.17.050.A. The builder shall provide reasonable documentation demonstrating that the development standards that are requested to be waived will have the effect of physically precluding the construction of the housing development at the densities or with the concessions and incentives permitted by Section 18.17.040 or Section 18.17.050.A.

F. City Financial Participation Not Required. Nothing in this chapter requires the provision of direct financial incentives for the housing development, including but not limited to the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The City at its sole discretion may choose to provide such direct financial incentives.

G. Prevailing Wages. Financial and certain other incentives may require payment of prevailing wages by the housing development if required by State law. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.050)

18.17.060 Review procedures for State mandated density bonuses, concessions, incentives, waivers, and parking reductions.

A. Below Market Rate Housing Plan. All requests for density bonuses, concessions and incentives, City incentives, parking reductions, and waivers provided pursuant to Sections 18.17.040 and 18.17.050 shall

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be submitted with the below market rate housing plan required by Section 18.16.060(B). The builder shall include the following additional information in the below market rate housing plan:

1. A tentative map or site plan or both, drawn to scale, depicting the number and location of all market rate units, below market rate units, density bonus BMR units, and bonus units.

2. Summary table showing the maximum number of dwelling units permitted by the City’s Zoning Ordinance and General Plan for the housing development, excluding any density bonus, proposed density bonus BMR units by income level, calculation of proposed bonus percentage, number of bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre..

3. The zoning and general plan designations and assessor's parcel number(s) of the housing development site.

4. A description of all dwelling units existing on the site in the five-year period preceding the date of submittal of the application and identification of any units rented in the five-year period. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units, if known. If any dwelling units on the site were rented in the five -year period but are not currently rented, the income and household size of residents occupying dwelling units when the site contained the maximum number of dwelling units, if known.

5. Description of any recorded covenant, ordinance, or law applicable to the site that restricted rents or prices to levels affordable to very-low or lower income households in the five-year period preceding the date of submittal of the application.

6. If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and reasonable documentation that each of the requirements included in California Government Code Section 65915, subdivision (g) can be met.

7. If the application proposes any concessions or incentives pursuant to Section 18.17.050, the below market rate housing plan shall also include the following information:
a. The City’s usual regulatory requirement and the requested regulatory incentive, described both in writing and shown on the submitted site plans elevations, or other submitted plans, as appropriate.

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b. Except where mixed-use zoning is proposed as a concession or incentive pursuant to Government Code Section 65915(k)(2), reasonable documentation to show that any requested incentive will result in identifiable and actual cost reductions to provide for affordable housing costs or rents.
c. If approval of mixed-use zoning is proposed, reasonable documentation that nonresidential land uses will reduce the cost of the housing development and that the nonresidential land uses are compatible with the housing development and the existing or planned development in the area where the proposed housing development will be located . .

8. If the application proposes waivers of development standards, the below market rate housing plan shall also include the following information:
a. The City’s usual development standard and the requested development standard, described both in writing and shown on the submitted site plans elevations, or other submitted plans, as appropriate.
b. Reasonable documentation that the development standards for which each waiver is requested will have the effect of physically precluding the construction of the housing development at the densities or with the concessions, or incentives permitted by State Density Bonus Law.

9. If the application proposes a reduction of parking standards, the below market rate housing plan shall also include a table showing parking required by the zoning regulations, parking proposed under Section 65915, subdivision (p), and reasonable documentation that the project is eligible for the requested parking reduction.

10. If a density bonus or concession is requested for a child care facility or condominium conversion, the below market rate housing plan shall provide reasonable documentation that the requirements of Government Code Section 65915(h) or 65915.5, as appropriate, can be made.

11. Other requested information included on the City’s application forms.

12. Payment of any fee in an amount set by resolution of the City Council for City costs necessary to determine compliance of the application with State Density Bonus Law.

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B. City Review of Application for State Mandated Density Bonus, Concessions, and Inc entives. Any request for a density bonus, concessions, incentives, waivers, or parking reductions provided pursuant to Sections 18.17.040 and 18.17.050 shall be submitted concurrently with the filing of the planning application for the first discretionary permit required for the housing development and shall be processed, reviewed, and approved or denied by the decision-making body (Planning Commission or City Council) concurrently with the below market rate housing plan required for the housing development. The applicant shall be informed whether the application is complete consistent with Government Code Section 65943.

In accordance with State law, neither the granting of a concession or incentive, nor the granting of a density bonus, shall be interpreted, in and of itself, to require a General Plan amendment, zoning code amendment, zone change, or other discretionary approval, or the waiver of a city ordinance or provisions of a city ordinance unrelated to development standards.

C. Eligibility for State Mandated Density Bonus, Concessions and Incentives, Waivers, and Parking Reductions. To ensure that an application for a housing development conforms with the provisions of State Density Bonus Law, the staff report presented to the decision-making body shall state whether the application conforms to the following provisions of State Density Bonus Law as applicable:

1. The housing development is eligible for a density bonus and any concessions, incentives, waivers, or parking reductions requested and has complied with requirements for the replacement of units as required by State Density Bonus Law.

2. If an incentive or concession is requested, any requested incentive or concession will result in identifiable and actual cost reductions to provide for affordable housing or costs or rents; except that, if a mixed-use development is requested, the application must instead meet all of the requirements of Government Code Section 65915, subdivision (k)(2).

3. If the density bonus is based all or in part on donation of land, the requirements of Government Code Section 65915(g) have been met.

4. If the density bonus, incentive, concession, waiver, or parking reduction is based all or in part on the inclusion of a child care facility or condominium conversion, the requirements included in Government Code Section 65915(h) or 65915.5, as appropriate, have been met.

5. If a waiver is requested, the housing development project is eligible for a waiver, and the development standards for which a waiver is requested would have the effect of physically

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precluding the construction of the housing development at the densities or with concessions or incentives permitted.

D. Findings for Denial of Incentives, Concessions or Waivers.

1. Denial of Concessions and Incentives. The decision-making body may deny a concession or incentive only if it makes a written finding, supported by substantial evidence, of any of the following:
a. The proposed incentive or concession does not result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for affordable rents, as defined in Health and Safety Code Section 50053, for the BMR density bonus units.
b. The concession or incentive would have a specific adverse impact upon public health or safety or on any real property that is listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households.

For the purpose of this subsection, “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 that the application for the housing development was deemed complete.
c. The concession or incentive would be contrary to State or Federal law.

2. Denial of Waivers. The decision-making body may deny a waiver only if it makes a written finding, supported by substantial evidence, of any of the following:
a. The waiver would have a specific adverse impact upon health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, and identified, written public health or safety standards, policies, or conditions as they existed on the date that the application was deemed complete.

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b. The waiver would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
c. The waiver would be contrary to State or Federal law.

3. Denial of Incentive or Bonus for Child Care Center. If a child care center complies with the requirements of subsection (h) of Government Code Section 65915, the decision-making body may deny a density bonus, incentive, or concession that is based on the provision of child care facilities only if it makes a written finding, based on substantial evidence, that the City already has adequate child care facilities. (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010.

Formerly 18.204.060)

18.17.070 Requirements for density bonus below market rate units.

In addition to any requirements included in Sections 18.17.040 and 18.17.050, density bonus BMR units shall conform to the following provisions applicable to below market rate units:

A. Below market rate unit standards (Section 18.16.050), except that for-rent density bonus BMR units that are affordable to very low- and low-income households that are not also BMR units required by Section 18.16.030 shall be affordable for fifty-five years or as long a period of time as permitted by current law. All for-sale density bonus BMR units shall be affordable in perpetuity. .

B. Compliance procedures (Section 18.16.060), except that the below market rate housing plan shall also include the provisions described in Section 18.17.040.A.

C. Eligibility for below market rate units (Section 18.16.080).

D. Owner-occupied below market rate units (Section 18.16.090).

E. Rental units (Section 18.16.100). (Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.070)

18.17.080 Interpretation.

If any portion of this chapter conflicts with State Density Bonus Law or other applicable state law, state law shall supersede this chapter. Any ambiguities in this chapter shall be interpreted to be consistent with State Density Bonus Law.

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RESOLUTION NO. PC2022-07

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN

CARLOS RECOMMENDING THE CITY COUNCIL AMEND MUNICIPAL CODE CHAPTER 18 TO ADJUST THE CITY DENSITY BONUS, INCLUSIONARY

HOUSING REQUIREMENTS, AFFORDABILITY PERIODS, PARKING FOR

AFFORDABLE UNITS, AND MAKE OTHER CONFORMING AMENDMENTS,

AND TO FIND SUCH ACTIONS ARE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT

RECITALS

WHEREAS, pursuant to Public Resour ces Code Section 21065 and CEQA Guidelines Section 15378, the proposed project does not constitute a “project” within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. The proposed ordinance also is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) since there would be no possibility of a significant effect on the environment, in that its provisions requiring the provision of affordable housing would not have any effect on the physical environment;

WHEREAS, at a duly noticed public hearing held on May 16, 20 22, the Pl anning Commission of the City of San Carlos consid ered amendments to Chapter 18 of the Municipal Code; and

WHEREAS, the Planning Commission has duly considered all evidence, including testimony and the evaluation and recommendations by staff, presented at said hearings.

NOW, THEREFORE BE IT RESOLOVED by the Planning Commission of the City of San Carlos as follows:

SECTION 1: The Planning Commission hereby finds and declares that each of the recitals and findings set forth in the Draft Ordinance attached hereto as Exhibit A are true and correct and are incorporated into this Resolution as though fully set forth herein.

SECTION 2: The Planning Commission recommends that the City Council, in substantially similar form to the Draft Ordinance attached hereto as Exhibit A, adopt the proposed amendments to Municipal Code Chapter 18.

Passed and adopted as a Resolution of the Planning Commission of the City of San Carlos at a regular meeting thereof held on the 16th day of May, 2022 by the following vote:

AYES, PLANNING COMMISSIONERS: GARVEY, IACOPONI, BRADLEY, CLEMENTS, ROOF

NOES, PLANNING COMMISSIONERS: NONE

ABSENT, PLANNING COMMISSIONERS: _NONE ___

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________________________________________________
CHAIR of the Planning Commission of the City of San Carlos

ATTEST:

______________________________________
PLANNING MANAGER of the City of San Carlos

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EXHIBIT A

ORDINANCE NO. ___

AN ORDINANCE OF THE CITY OF SAN CARLOS AMENDING MUNICIPAL CODE CHAPTER 18 TO ADJUST THE CITY DENSITY BONUS,

INCLUSIONARY HOUSING REQUIREMENTS, AFFORDABILITY PERIODS,

PARKING FOR AFFORDABLE UNITS, AND MAKE OTHER CONFORMING

AMENDMENTS

RECITALS

WHEREAS, California Government Code Section 65580(d) states that all citie s have a responsibility to use the powers vested in them to facilitate the improvement and development of housing and to make adequate provision for the housing needs of all economic segments of the community

WHEREAS, pursuant to Public Resources Code Sec tion 21065 and CEQA Guidelines Section 15378, the proposed project does not constitute a “project” within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect phys ical change in the environment, and therefore does not require environmental review. The proposed ordinance also is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) since there would be no possibility of a significant effect on the environment, in that its provisions requiring the provision of affordable housing would not have any effect on the physical environment;

WHEREAS, at a duly noticed public hearing held on May 16, 2022 , the Pl anning Commission considered amendments to Chapter 18 of the Municipal Code; and

WHEREAS, by Resolution PC2022-[xx], adopted on May 16 , 20 22, the Planning Commission recommended the City Council adopt the proposed amendments; and

WHEREAS, the City Council of the City of San Carlos held a duly noticed public hearing on June 13, 2022 to consider the proposed amendments to Chapter 18 of the Municipal Code ; and

WHEREAS, the City Council has duly considered all evidence, including testimony and the evaluation and recommendations by staff, presented at said hearings.

NOW, THEREFORE BE IT ORDAINED by the City Council of the City of San Carlos as follows:

SECTION 1: The City Council of the City of San Carlos hereby finds and declares that the forgoing recitals are true and correct and are incorporated into this Ordinance as though fully set forth herein. The City Council further finds as follows:

1. The ordinance amendment is consistent with the General Plan.

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Rental and owner-occupied housing in the City of San Carlos has become steadily more expensive. In recent years housing costs have escalated sharply, increasing faster than incomes for many groups in the community. As a result, there is a severe shortage of adequate, affordable housing for extremely low, very low, lower, and moderate income households. Requiring that new market rate rental and owner-occupied housing provide a percentage of total units for lower- and moderate income households will increase the supply of such housing options. By increasing the supply of housing affordable to lower and moderate income households, the amendments will help implement Policy HOU-1.2 of the General Plan's Housing Element, which calls for the City to minimize potential displacement of lower-income households from the City due to increasing housing prices and rents.

General Plan Housing Element Policy HOU -5.5 calls for the City to p rovide an adequate number of affordable housing units to extremely low, very low and low-income households based on the City's share of the regional housing needs. These amendments will help increase the supply of affordable housing to lower -income households, consistent with the General Plan.

Therefore, as stated in the General Plan's Housing Element, it is the City's policy to encourage the provision of a wide range of housing by location, type of unit and price to meet the City's share of the regional housing needs. The City can achieve its goals of providing more affordable housing and achieving an economically balanced community only if par t of the new housing built in the City is affordable to households with limited incomes, which these amendments would require . Accordingly, the ordinance amendment is consistent with the General Plan.

2. The ordinance amendment is consistent with the purpose of this title to promote the growth of the City in an orderly manner and to promote and protect the public health, safety, peace, comfort and general welfare.

As described above, the amendments will advance the City's interest in providing additional housing affordable to all income levels and dispersed throughout the City because affordable units required by the ordinance codified in this chapter, including both rental and ownership units, must b e affordable to either very low and lower-income households. Requiring affordable units within new residential development enhances the public welfare by fostering an adequate supply of housing for persons at all economic levels and maintaining both economic diversity and geographically dispersed affordable housing within the City.

Moreover, requiring builders of new market rate housing to provide some housing affordable to very low and low -income households is also reasonably related to the impacts of their developments, because rising land prices have been a key factor in preventing development of new affordable housing. New market -rate housing uses available land and drives up the price of remaining land. New development without affordable units reduces the amount of land development opportunities available for the construction of affordable housing. In addition, n ew residents of market -rate housing place demands on services provided by both public and private sectors, creating a demand for new employees. Some of these public and private sector employees needed to meet the needs of the new residents earn incomes only adequate to pay for affordable housing. Because affordable housing is in short supply in the City, such employees may

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be forced to live in less than adequate housing within the City, pay a disproportionate share of their incomes to live in adequate housing in the City, or commute ever increasing distances to their jobs from housing located outside the City. These circumstances place strains on the City's ability to accept and service new market-rate housing development.

SECTION 2: Chapter 18 is hereby amended as follows:

Chapter 18.16

AFFORDABLE HOUSING PROGRAMS

18.16.010 Purpose.

The purpose of this chapter is to:

A. Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the City as mandated by State law, California Government Code Section 65580 et seq.

B. Enhance the public health, safety, and welfare within the City. Requiring builders of new market rate housing to provide some housing affordable to very low-, lower-, and moderate-income households is also reasonably related to the impacts of such developments, because there is a need to offset the demand for affordable housing that is created by new development and mitigate environmental and other impacts that accompany new residential and commercial development by: protecting the economic diversity of the City’s housing stock; reducing traffic, transit, and related air quality impacts; promoting jobs/housing balance; and reducing the demands placed on transportation infrastructure in the region.

C. Promote the City’s goal to add affordable housing units to the City’s housing stock in proportion to the overall increase in new jobs and housing units.

D. Support the Housing Element policy to consider use of funds for developments with a higher percentage of below market rate units or deeper affordability than otherwise is required.

E. Support the Housing Element policy to encourage accessory dwelling units as a form of affordable housing.

F. Support the Housing Element goal of assisting in the development of new housing that is affordable at all income levels and the policies and actions that support this goal.

G. Support the Housing Element goal of removing and/or mitigating potential governmental constraints to the provision of adequate, affordable housing and the policies and actions that support this goal.

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H. Support the guiding principle of the Housing Element that housing in San Carlos suppo rts an economically and socially diverse population.

I. Support the guiding principle of the Housing Element that housing in San Carlos creates and supports vibrant neighborhoods and a cohesive sense of community.

J. Meet the housing needs identified by the Housing Element of the General Plan.

K. Encourage the production of the very low-, low-, and moderate-income units planned for in the Housing Element of the General Plan.

L. Comply with the provisions of Government Code Section 65915 mandating the adoption of a City ordinance that specifies procedures for providing density bonuses and other incentives and concessions.

M. Provide and maintain affordable housing opportunities in the City through an affordable housing program for both ownership and rental housing, and, in furtherance of that goal, include rental affordable housing requirements in this chapter consistent with Government Code Sections 65850(g) and 65850.01.

N. Provide builders with alternatives to construction of below market rate units on the same site as the market rate residential development. Therefore, this chapter includes a menu of options from which a builder may select an alternative to the construction of below market rate units on the same site as the market rate residential development. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1550 § 2 (part), 2019: Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.010)

18.16.020 Definitions.

As used in this chapter and in Chapter 18.17, the following terms shall have the following meanings:

A. “Administrator” means the Housing Manager of the City or other person designated by the City Manager.

B. “Affordable ownership cost” means a sales price for a below market rate unit, based on a reasonable down payment, that results in a monthly housing cost (including mortgage principal an d interest, property taxes, insurance, a reasonable allowance for utilities (pursuant to a schedule provided by the San Mateo County Housing Authority), parking, and homeowners’ association costs, if any) that does not exceed:

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1. For very low-income households, one-twelfth of fifty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

2. For low-income households, one-twelfth of seventy percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

3. For moderate-income households, one-twelfth of one hundred ten percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty -five percent.

C. “Affordable rent” means monthly rent, including a reasonable allowance for utilities (pursuant to a schedule provided by the San Mateo County Housing Authority)and, parking, and any separately charged fees for use of the property for a below market rate unit that does not exceed:

1. For very low-income households, one-twelfth of fifty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

2. For low-income households, one-twelfth of sixty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent.

D. “Area median income” means the median household income for San Mateo County as published by the State of California pursuant to California Code of Regulations, Title 25, Section 6932, or successor provision.

E. “Assumed household size based on unit size” means a household of one person in a studio unit, two persons in a one-bedroom unit, three persons in a two-bedroom unit, and one additional person for each additional bedroom, unless the requirements of another funding source require an alternate method of calculating assumed household size.

F. “Below market rate housing agreement” means a written agreement between a builde r and the City as provided by Section 18.16.060(C).

G. “Below market rate housing plan” means a plan for a residential development submitted by a builder as provided by Section 18.16.060(B).

H. “Below market rate incentives” means incentives provided by the City for below market rate (BM R) units and density bonus BMR units pursuant to Chapter 18.17.

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I. “Below market rate (BMR) unit” means a dwelling unit that shall be offered at an affordable rent or affordable ownership cost to moderate-, low- and very low-income households and is required by the City pursuant to Section 18.16.030.

J. “Builder” means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities that seeks City approvals for all or part of a residential development.

K. “City” means the City of San Carlos.

L. “Density bonus” is as defined in Chapter 18.17.

M. “Density bonus below market rate (BMR) unit” is as defined in Chapter 18.17.

N. “First approval” means the first discretionary approval to occur with respect to a residential development, or, for residential developments not requiring a discretionary approval, the issuance of a building permit.

O. “Household” means one person living alone or two or more persons sharing residency whose income is considered for housing payments.

P. “In lieu fee” is as defined in Section 18.16.030(C).

Q. “Low-income household” means a household whose annual income does not exceed the qualifying limits set for lower-income households in Section 50079.5 of the California Health and Safety Code.

R. “Market rate unit” means a dwelling unit in a residential development that is not a below market rate unit or a density bonus BMR unit or is not otherwise required by this chapter to be affordable to very low- , low-, or moderate-income households.

S. “Moderate-income household” means a household whose income does not exceed the qualifying limits set for persons and families of low or moderate income in Section 50093 of the California Health and Safety Code.

T. “Off-site below market rate unit” means a below market rate unit that will be built separately or at a different location than the residential development.

U. “On-site below market rate unit” means a below market rate unit that will be bu ilt at the same location as the residential development.

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V. “Residential development” means any development project requiring any discretionary permit from the City, or a building permit, and which would create one or more additional dwelling units and/ or lots by construction or alteration of structures, or by subdivision of existing lots, or which would add one thousand square feet or more to an existing dwelling unit. A residential development includes dwelling units that are part of a mixed-use development and the conversion of existing dwelling units to community housing subdivision ownership as defined in Chapter 17.48.

W. “Residential ownership development” means any residential development project that includes the creation of one or more residential dwelling units and/or lots that may be sold individually, or that would add one thousand square feet or more to an existing dwelling unit that may be sold individually. A residential ownership development also includes the conversion of existing dwelling units to community housing subdivision ownership as defined in Chapter 17.48.

X. “Residential rental development” means any residential development project that creates one or more residential dwelling units that cannot be sold individually, or that would add one thousand square feet or more to an existing dwelling unit that cannot be sold individually.

Y. “Very low-income household” means a household whose income does not exceed the qualifying limits set for very low-income households in Section 50105 of the California Health and Safety Code. (Ord. 1550 § 2 (part), 2019: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010:

Ord. 1340 § 1 (part), 2004. Formerly 18.200.030)

18.16.030 Below market rate housing requirements.

A. Residential Development. For all residential ownership developments of sevenfive (75) or more dwelling units, at least fifteen twenty percent (1520%) of the total units shall be below market rate units restricted for rent or sale to and occupancy by moderate-, low-, and very low-income households unless the residential development is exempt under Section 18.16.040. For all residential rental developments of seven (7) or more dwelling units, at least fifteen percent (15%) of the total units shall be below market rate units restricted for rent to and occupancy by low and very low-income households unless the residential development is exempt under Section 18.16.040. The number and type of below market rate units required for a particular residential development will be determined at first approval of the residential development in accordance with the provisions of Section 18.16.060. If a change in the residential development design results in a change in the total number of units, the number of below market rate units required will be recalculated to coincide with the final approved project.

1. Residential Ownership Development. At least fifteen twenty percent (1520%) of the total units in a residential ownership development shall be below market rate units, of which ten percent

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(10%) shall be affordable to moderatelow-income households and five percent (5%) affordable to low-income households unless an alternative is approved as described in Section 18.16.070.

2. Residential Rental Development. At least fifteen percent (15%) of the total units in a residential rental development shall be below market rate units, of which ten percent (10%) shall be affordable to very low-income households and five percent (5%) affordable to low-income households unless an alternative is approved as described in Section 18.16.070. Projects may alternatively, but are not required to, designate fifteen percent (15%) of the units as affordable to very low-income households in order to maximize the benefits allowed by the State Density Bonus Law, Government Code Section 65915.

B. Calculation. In determining the number of whole below market rate units required, calculations shall be based on the number of dwelling units in the residential development, excludin g any units above the otherwise maximum allowable density that are approved pursuant to the State Density Bonus Law, Government Code Section 65915 et seq. Any decimal fraction less than one-half (0.5) shall be rounded down to the nearest whole number, and any decimal fraction of one-half (0.5) or more shall be rounded up to the nearest whole number.

C. In Lieu Fee. Under the circumstances specified in this subsection, the below market rate housing requirements in subsection A of this section may be satisfied by the payment of a fee to the City in lieu of constructing the below market rate units within the residential development.

1. For a residential ownership development of one (1) dwelling unit, or for an addition of one thousand (1,000) square feet or more to an existing dwelling unit that may be sold individually, the builder shall pay an in lieu fee or construct an accessory dwelling unit consistent with Section 18.23.210, Accessory dwelling units/junior accessory dwelling units.

2. For a residential development that creates one (1) additional lot, or two (2) to six (6) rental dwelling units and/or lots, or two (2) to four (4) ownership dwelling units and/or lots, or for a residential development that triggers a decimal fraction of less than one-half (.50), the builder shall pay an in lieu fee for the partial fractional unit requirement or build a below market rate unit affordable to a low-income household.

3. The in lieu fee may be established from time to time by resolution of the City Council or may be determined for a specific residential development through the preparation of an affordability gap analysis that will determine the difference between the affordable sales price or rent and the fair market rate pricevalue for the unit, but in no event shall the in lieu fee exceed the cost of

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mitigating the impact of market rate units in a residential development on the need for affordable housing in the City.

4. Nothing in this chapter or Chapter 18.17 shall deem or be used to deem the in lieu fee authorized pursuant to this subsection C as an ad hoc exaction or, as a mandated fee required as a condition to developing property. , or as a fee subject to the analysis in Building Industry Association of Central California v. City of Patterson, 171 Cal.App.4th 886 (2009). Any in lieu fee adopted by the City Council is a menu option that may serve as an alternative to the on -site below market rate housing requirements set forth in this chapter.

D. Below Market Rate Units Eligible for State Density Bonus. If a residential developm ent receives a density bonus pursuant to Government Code Section 65915, any density bonus BMR unit and any dedication of property that made the residential development eligible for the density bonus that also satisfies the requirements of this chapter shall be counted as below market rate units pursuant to this chapter. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1550 § 2 (part), 2019: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.040)

18.16.040 Exemptions to below market rate housing requirements.

The requirements of Section 18.16.030 do not apply to:

A. Residential development of a legal accessory dwelling unit consistent with Section 18.23.210, Accessory dwelling units/junior accessory dwelling units.

B. The reconstruction of any dwelling units that have been destroyed by fire, flood, earthquake or other act of nature; provided, that the reconstruction of the site does not increase the number of legally constructed dwelling units or increase the area of the legally constructed dwelling units by one thousand (1,000) square feet or more.

C. Additions to existing dwelling units of less than one thousand (1,000) square feet.

D. Residential developments that already have more deed-restricted units that are affordable to moderate-, low- and very low-income households than Section 18.16.030 requires. (Ord. 1566 (Exh. B (part)), 2020: Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.050)

18.16.050 Below market rate unit standards.

Below market rate units built under Section 18.16.030 shall conform to the following standards:

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A. Design. Except as otherwise provided in this chapter, and subject to the approval of the Administrator, below market rate units shall be evenly dispersed by floor and general location throughout a residential development and, consistent with Health & Safety Code Section 17929, may not be isolated to a specific floor or area on a specific floor and must have the same access to the common entrances to a structure as the market-rate units. Below market rate units may have different interior finishes and features than market rate units in the same residential development, so long as the finishes and features are durable, of good quality, compatible with the market rate units, and consistent with contemporary standards for new housing. Below market rate units may must in aggregate be no smaller in aggregate average size than market rate units in the same residential development, so long as and the number of bedrooms in below market rate units shall be in the same proportion as in the total number of units in the residential development.

B. Timing. All below market rate units shall be constructed and occupied concurrently with or prior to the construction and occupancy of market rate units, and in phased residential developments, below market rate units may be constructed and occupied in proportion to the number of units in each phase of the residential development, unless an alternative phasing plan is approved as part of the below market rate housing plan for the residential development.

C. Duration of Affordability Requirement. Below market rate units produced under this chapter and Chapter 18.17 shall be legally restricted to occupancy by households of the income levels for which the units were designated in perpetuity, for a period of forty-five years for below market rate units offered for sale, and for a period of fifty-five years for below market rate units offered for rent. (Ord. 1438 § 4 (Exh.

A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.060) D. Parking. Below market rate units must be provided parking spaces at a ratio equivalent to the distribution of parking spaces among market rate units for an equivalent bedroom size (for instance, if

1.5 parking spaces on average are provided for each two-bedroom market rate unit, then the two- bedroom below market rate units must be provided 1.5 parking spaces on average). Any fractional result must be rounded up. For residential ownership developments, any additional cost for the parking spaces must be included in calculating the affordable ownership cost for the below market rate units. For residential rental developments, any additional cost for the parking spaces must be included in calculating the affordable rent for the below market rate units.

18.16.060 Compliance procedures.

A. General. Approval of a below market rate housing plan and recordation of an approved below market rate housing agreement prior to the recordation of any final or parcel map, or, if no final or parcel

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map is required, prior to issuance of any building permit, is a condition of the first approval of any residential development to which Section 18.16.030 applies. This section does not apply to exempt projects or to residential developments where the requirements of Section 18.16.030 are satisfied by payment of a fee under Section 18.16.030(C).

B. Below Market Rate Housing Plan. The decision-making body for the first approval (either the Planning Commission or the City Council) shall approve, conditionally approve or reject the below market rate housing plan. No application for a first approval for a residential development to which Section 18.16.030 applies shall be deemed complete until a below market rate housing plan, in a form satisfactory to the Administrator, is deemed complete by the Administrator. The below market rate housing plan shall include:

1. The location, structure (attached, semi-attached, or detached), proposed tenure (for sale or rental), number of bedrooms, and size of the proposed market rate and below market rate units and the basis for calculating the number of below market rate units;

2. A floor or site plan depicting the location of the market rate and below market rate units and the location of the common entrances;

3. The income levels to which each below market rate unit will be made affordable;

4. The same information for any below market rate units provided to meet other requirements of state law, including but not limited to density bonus law, Government Code Section 65915; streamlined approval (SB 35; Government Code section 65913.4); or the Housing Crisis Act of 2019 (Government Code Section 66300).

5. For a phased residential development, a phasing plan that provides for the timely development of the number of below market rate units proportionate to each proposed phase of development, or with an alternative phasing plan;

65. A description of any below market rate incentive requested pursuant to Chapter 18.17;

76. Any alternative means designated in Section 18.16.070(A) proposed for the residential development, along with information necessary to support the findings required by Section 18.16.070(B) for approval of such alternatives;

87. Builder’s agreement to conform to the provisions of this chapter, including but not limited to the provisions of Sections 18.16.080 through 18.16.100; and

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98. Any other information reasonably requested by the Administrator to assist with evaluation of the below market rate housing plan under the standards of this chapter.

C. Below Market Rate Housing Agreement. The forms of the below market rate housing agreement and any resale and rental restrictions, deeds of trust, options to purchase, and other documents authorized by this subsection, and any change in the form of any such document which materially alters any policy in the document, shall be approved by the Administrator and the City Attorney or his or her designee prior to being executed with respect to any residential development prior to the recordation of any final or parcel map, or, if no final or parcel map is required, prior to issuance of any building permit.

The form of the below market rate housing agreement will vary, depending on the manner in which the provisions of this chapter are satisfied for a particular development. All below market rate housing agreements shall include, at minimum, the following:

1. Description of the residential development, including whether the below market rate units will be rented or owner-occupied;

2. The number, size, number of bedrooms, and location of all below market rate units;

3. Below market rate incentives granted by the City, if any, pursuant to Chapter 18.17;

4. Provisions and/or documents for resale restrictions, deeds of trust, options to purchase, rental restrictions, or other documents as appropriate;

5. Provisions for monitoring the ongoing affordability of the units, and the process for qualifying prospective resident households for income eligibility;

6. Formula for calculating affordable rent and/or affordable ownership cost and the proposed initial sales price for the below market rate units and, any density bonus BMR units, and any very low or low income housing units required to meet any other requirements of state law, including but not limited to density bonus law, Government Code Section 65915; streamlined approval (SB 35; Government Code section 65913.4); or the Housing Crisis Act of 2019 (Government Code Section 66300),as applicable;

7. Builder’s agreement to conform to the provisions of this chapter, including but not limited to the provisions of Sections 18.16.080 through 18.16.100; and

8. Any additional obligations relevant to the compliance with this chapter.

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If a builder chooses to satisfy all or a portion of the below market rate requirement with rental units, as permitted by Government Code Section 65589.8, then the below market rate housing agreement shall include the builder’s agreement to the limitations on rents and applicable terms and conditions required by Section 18.16.030(C).

D. Recording of Agreement. Prior to the recordation of any final or parcel map for a residential development, or, if no final or parcel map is required, prior to issuance of any building permit for a residential development, below market rate housing agreements that are approved and fully executed shall be recorded against residential developments containing below market rate units. Additional rental or resale restrictions, deeds of trust, options to purchase, and/or other documents acceptable to the Administrator shall also be recorded at the time of sale against owner-occupied below market rate units.

In cases where the requirements of this chapter are satisfied through the development of off -site below market rate units, the below market rate housing agreement shall simultaneously be recorded against the property where the off-site below market rate units are to be developed.

E. Amendments. Modifications to the below market rate housing plan shall be considered a change in the approved conditions of approval and processed in the same manner as the original below market rate housing plan. (Ord. 1550 § 2 (part), 2019; Ord. 1480 (Exh. C (part)), 2015; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 3 (Exh. A (part)), 2010: Ord. 1340 § 1 (part), 2004. Formerly 18.200.070)

18.16.070 Alternatives.

A. Builder Proposal. A builder may propose an alternative means of compliance in a below market rate housing plan required by Section 18.16.060(B) according to the following provisions. The builder may also partner with a nonprofit affordable housing provider to meet its below market rate housing obligations through one of the alternatives set forth in this section.

1. Increase in Total Number of Below Market Rate Unit Bedrooms. The builder may propose a plan that provides larger units and increases the total number of bedrooms that would have otherwise been provided under this chapter, even if fewer total units are produced.

12. Provision of a Greater Level of Affordability. The builder may propose a greater level of affordability than required under this chapter and reduce the total number of units otherwise required.

23. Off-Site Construction. Below market rate units may be proposed off-site within the City limits if it can be demonstrated that the proposal meets all of the following conditions:

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a. Tthe off-site construction proposal would result in a minimum of ten percent more total below market rate units than required by this chapter. and if b. Tthe below market rate units will be located in an area where, based on the availability of affordable housing, the Administrator decision-making body finds that the need for such units is greater than the need in the area of the proposed development. c. The off-site location is suitable for the proposed below market rate housing, consistent with any adopted guidelines and the housing element, and will not tend to cause residential segregation or concentrations of poverty.
d. If the builder proposes to provide rental off-site below market rate units in place of ownership on- site below market rate units, the rental off-site below market rate units shall meet the affordability and other requirements specified in Section 18.16.030(C). e. Off-site below market rate units shall meet or exceed minimum quality standards specified in conditions of approval and may include any combination of new dwelling units, new dwelling units created in existing structures, or the preservation of existing affordable units at risk of loss or by conversion of existing market rate units to below market rate units if the preservation or conversion of these units is consistent with Government Code Section 65583.1 and allows the City to use the preserved or converted units to help meet its regional housing needs allocation.

The following information, to the satisfaction of the Administrator, is required for submittal of a proposal for off-site below market rate units:
a. If the off-site below market rate units will not be constructed concurrently with the market rate units, the builder shall specify the security to be provided to the City to ensure that the below market rate units will be constructed in a timely manner, including evidence of ownership or control of any sites proposed for the below market rate units, to the satisfaction of the Administrator, and clear and convincing evidence that financing has been secured for the off-site below market rate units.
b. For preservation of existing affordable units at risk of loss or conversion of existing market rate units to below market rate units:
i. Existing rent or appraised value of each unit on the property to be converted, proposed rents or sales prices after conversion or preservation, and any existing rent

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limits, resale price restrictions, or other affordability restrictions imposed by any public agency, nonprofit agency, land trust, or other body.
ii. Size of households occupying each unit on the property to be converted, vacancy rates for each month during the past two years, and existing tenant incomes. iii. A property inspection report prepared by a certified housing inspector and a termite report, both prepared no more than sixty days before the filing of the application. The property inspection report shall include a full examination of all common and private areas within the existing dwelling units for compliance with applicable building codes. iv. Plans and a written description of rehabilitation to be completed, including correction of all code violations and completion of all termite repairs described in the property inspection report and termite report; cost of rehabilitation; and the appraised value of the property, including land, buildings, and all other improvements, after rehabilitation.
v. Description of benefits to be offered existing tenants, including but not limited to right of first refusal to remain in the unit, and required relocation assistance for existing tenants.
vi. Evidence that the proposal complies with the provisions of Government Code Section 65583.1 and that the City may utilize the units to help meet its regional housing needs allocation.

34. Land Dedication. Below market rate units may be proposed off-site within the City limits if the proposal meets all of the following conditions:
a. The land dedication proposal would result in a minimum of ten percent more total below market rate units than required by this chapter.
b. The dedicated land is located either on the site of the housing development or in an area where, based on the availability of affordable housing, the decision-making body finds that the need for such units is greater than the need in the area of the proposed development. c. The dedicated land is suitable for the proposed below market rate housing, consistent with any adopted guidelines and the housing element, and will not tend to cause residential segregation or concentrations of poverty.