San Mateo City Council
March 18, 2024

Exhibit A2
Compost Broker Scope of Work
In consideration of the payments set forth in this agreement, San Mateo Resource Conservation District (Contractor) shall provide the following services:

Contractor shall develop and coordinate a compost procurement and application program that will assist the City of San Mateo meet its recovered organic waste product procurement requirements under CA Senate Bill 1383 (SB 1383). The program will consist of the following aspects:

1. Outreach & Technical Assistance:
o Contractor shall conduct outreach to agricultural producers or other organizations such as but not limited to farmers, ranchers, landowners, open space districts, nonprofits, and universities about the compost procurement and application program established under this agreement, benefits of compost use, and carbon farming. Contractor shall translate any material created to conduct outreach to Spanish, and Simplified Chinese as needed. o Contractor shall provide agricultural producers and other organizations with technical assistance to incorporate compost into their operations, such as soil sampling, identifying compost application rates, etc.
o Contractor shall provide agricultural producers with information for funding opportunities for compost application, such as CDFA’s Healthy Soils Program and NRCS’s farm bill programs.

2. Compost Procurement
o Contractor shall identify and recruit compost procurement and application projects for the compost procurement and application program established under this agreement that will help the City of San Mateo meet its SB 1383 recovered organic waste procurement requirements.
o Contractor shall cover up to 75% of compost/hauling/spreading costs or provide funding as cost-share for other funding sources (whichever is less). If the program is oversubscribed, Contractor shall develop a system for equitable distribution of compost or ranking system to identify projects.
o Contractor shall track procurement credits attributed to the City of San Mateo , and where necessary, shall ensure that a signed agreement between City of San Mateo and project owner/compost recipient is in place prior to the purchase of compost. This shall be done in order for the City of San Mateo to claim SB 1383 procurement credit for procured compost in instances where the Contractor is not directly purchasing compost procured under this agreement.
o Contractor shall procure high-quality compost that is eligible to count towards the City of San Mateo’s SB 1383 procurement target as described in the CA Senate Bill 1383 regulations.

3. Record Keeping & Reporting
o Contractor shall keep documentation proving that SB 1383 procurement credit attributed to the City of San Mateo under this agreement is solely for the use of the City of San Mateo and not claimed by any other entity or jurisdiction for their SB 1383 reporting. o Contractor shall collect a release of liability waiver from all individuals who receive compost through the compost procurement and application program established under this agreement. Contractor shall provide all signed waivers to City of San Mateo upon request.
o Contractor shall collect a photo release form from all individuals who receive compost through the compost procurement and application program established under this agreement allowing the City of San Mateo to use photos taken under this agreement in

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public presentations, reports, or other outreach. Contractor shall provide all signed forms to the City of San Mateo upon request.
o Contractor shall take pictures and/or videos of compost application projects. o Contractor shall calculate the net carbon sequestration associated with this agreement and attributed to the City of San Mateo.
o Contractor shall provide the City of San Mateo with all procurement records associated with this agreement and required for the City of San Mateo’s SB 1383 recycled organic waste procurement compliance recordkeeping and reporting.

4. Scaling Compost Procurement Opportunities
o Contractor shall identify equipment and infrastructure necessary to increase compost use amongst agricultural producers in San Mateo County, provide cost estimates, and, if deemed necessary by the Contractor, design an equipment sharing program. o Contractor shall explore innovative strategies for the jurisdictions within San Mateo County to provide ongoing funding for this program beyond the term of the CalRecycle SB 1383 local assistance grant.

5. Administration
o Contractor shall submit invoices quarterly. The City of San Mateo will receive 12.923 of the SB 1383 procurement credits associated with the contractor’s compost procurement and application program, and therefore will be responsible for $164,055.80 which is

12.923% of the total project cost of $1,269,470.88.
o Each quarterly invoice shall be accompanied by a progress report, which shall include updates on the Contractor’s outreach, technical assistance, and compost procurement and application efforts completed during the reporting period. The progress report may also include images of compost application projects for the jurisdiction to use in public reports, presentations, or other outreach.
o Contractor shall submit a final report by March 1, 2026 summarizing all outreach, technical assistance, and compost procurement and application efforts completed through this agreement; all costs associated with the project; the SB 1383 procurement and carbon sequestration credit accredited to the City of San Mateo; and a summary of the needs, strategies, opportunities identified in Task 4, and any other relevant information.

6. Procurement Only Subcontractors
o The City of San Mateo expressly authorizes Contractor to subcontract with farmers, ranchers, nonprofits, and other organization to procure compost for application on land they own or manage (“Procurement Only Subcontractors”) in order to meet the Contractor’s requirements under this agreement and facilitate the City of San Mateo’s compliance with its recovered organic waste product procurement requirements under SB 1383. Contractor shall require Procurement Only Subcontractors to provide an executed release of liability form and executed photo release form prior to procuring any compost on Contractor’s behalf. Contractor shall require all Procurement Only Subcontractors to provide Contractor with all procurement records associated with Procurement Only Subcontractor’s compost procurement required for the City of San Mateo’s SB 1383 recycled organic waste procurement compliances recordkeeping and reporting. Under no circumstances shall Contractor obligate the City of San Mateo’s to any financial obligation beyond the do not exceed amount for this agreement through subcontracting.

7. Additional Projects
o Contractor shall identify projects that help the City of San Mateo meet its SB 1383 recovered organic waste procurement requirements beyond compost procurement and application such as mulch procurement and application, composted mulch procurement and application, and/or other projects that help a jurisdiction to meet its procurement target. With written prior approval from the City of San Mateo and

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agreement from Contractor, Contractor shall carry out identified projects for this program if the cost of a project is comparable or less than compost application projects. Contractor shall collect a release of liability waiver and procurement records the City of San Mateo requires for its SB 1383 procurement compliance from all individuals or organization who receive any material through the program established under this agreement.

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Exhibit B2
Rates
Position Title/Description Staff Name Salary &
Fringe Per
Hour
Administrative Officer Lau Hodges $116
Biologist Cleopatra Tuday $101
Senior Conservation Program Manager Amy Kaeser $100
Conservation Program Manager Timothy Federal $90
Conservation Program Manager Eliza Milio $94
Conservation Program Specialist Sara Polgar $76
Conservation Project Coordinator Maaya Hensman $55
Senior Conservation Project Manager Kasey Butler $81
Forest Ecologist David Cowman $82
Conservation Project Manager Christina Kelleher $77
Conservation Project Manager Caileen Viehweg $73
Conservation Project Manager Doug Millar $74
Conservation Project Manager Eddie Sanchez $73
Senior Conservation Project Manager Grace Allen $73
Conservation Project Manager Erica Harris $82
Senior Conservation Project Manager Stephanie
MacDonald
$82
Conservation Project Manager Jeff Raifsnider $72
Director of Advancement Adria Arko $116
Director of Stewardship Joe Issel $137
Engagement Officer Barb Kipreos $94
Executive Director Kellyx Nelson $160
Santa Cruz Mountains Stewardship Network Manager Dylan Skybrook $90 Director of Water Resources Jarrad Fisher $133
Senior Conservation Technician Andrew Hall $82
Water Quality Program Manger Noah Katz $94
Conservation Project Associate Ainé Javier $52
Administrative Assistant Cesar Aguilar $56

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Conservation Project Manager Ryan Silsbee $73

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 7 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 24-8468 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: March 18, 2024
SUBJECT:

Wastewater Treatment Plant Upgrade and Expansion Project – Agreement RECOMMENDATION:

Approve a Right-of-Entry Agreement with the City of Hollister, at no cost, allowing the City to enter onto the City of Hollister’s Wastewater Treatment Plant property for the purpose of obtaining sludge to support startup of the City of San Mateo’s new wastewater treatment plant; and authorize the Public Works Director to execute the Agreement in substantially the form presented and to execute any necessary no-cost amendments.

BACKGROUND:

The City is currently under a Regional Water Quality Control Board Cease-and-Desist Order requiring improvements to its sewer collection system and Wastewater Treatment Plant (WWTP) to eliminate sanitary sewer overflows and unauthorized discharges of untreated or partially treated wastewater to San Francisco Bay. The Clean Water Program (CWP) includes several capital improvement projects that are currently under construction and intended to comply with the Cease-and-Desist Order. The WWTP Upgrade and Expansion Project (Project) is the largest of these CWP projects, which will result in a new treatment plant for processing wastewater.

Construction of the WWTP Upgrade and Expansion is nearing completion. Once construction is completed and systems are tested with clean water, the treatment processes need to be “seeded.” Seeding consists of using sewage sludge to provide biological seed material to support growth of the bacteria needed to effectively treat wastewater. The City needs a certain type of sludge to speed up the seeding process that is not produced at the existing WWTP. Staff evaluated options for importing sludge from other WWTPs and determined the City of Hollister provides a cost-effective solution to seed the new WWTP as it can provide the correct type of sludge at the lowest cost to transport. The City of Hollister is agreeable to providing the seed sludge to the City of San Mateo at no-cost pursuant to the terms within the proposed Right-of-Entry Agreement, included as Attachment 1. The WWTP Upgrade and Expansion project’s contractor will be scoped to obtain and transport the seed sludge, as well as seed the new WWTP.

Staff has reviewed the Right-of-Entry Agreement and recommends for Council to approve and authorize the Public Works Director to execute the Agreement.

BUDGET IMPACT:

There are no costs associated with executing this right of entry agreement with the City of Hollister.

ENVIRONMENTAL DETERMINATION:

The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). Council on June 6, 2016, certified the PEIR. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for the implementation of the Clean

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Water Program. The City prepared Addenda to the Final PEIR that was approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the Project evaluated in the PEIR and Addendum.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Agreement

STAFF CONTACT
Thomas Ruark, Senior Project Manager
[email protected]
(650)522-7280
Deryk Daquigan, Acting Deputy Director of Public Works
[email protected]
(650)522-7287

Matt Fabry, Director of Public Works
[email protected]
(650)522-7309

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RIGHT OF ENTRY AGREEMENT

BETWEEN

THE CITY OF HOLLISTER
AND

CITY OF SAN MATEO
THIS RIGHT OF ENTRY AGREEMENT (“AGREEMENT”) is entered into by and between the CITY OF SAN MATEO and the CITY OF HOLLISTER , a municipal corporatio n ("CITY"), upon execution by the CITY.

RECITALS
A. WHEREAS, the CITY OF SAN MATEO needs to obtain “seed” sludge from the CITY to be used in the commissioning of its new wastewater treatment plant, which the CITY has agreed to provide to the CITY OF SAN MATEO at no cost; and B. WHEREAS, the CITY OF SAN MATEO will be trucking the “seed” sludge from the premises of the City of Hollister Water Reclamation Facility (“WRF”) in the City of Hollister, County of San Benito, State of California; and C. WHEREAS, the CITY OF SAN MATEO desires to obtain access to those areas of the WRF premises designated on Exhibit A (vicinity of the Sludge Handling Building) (collectively “Properties”) attached hereto and incorporated by reference herein, for the purpose of trucking off-site sludge from the gravity belt thickener; and
D. WHEREAS , the CITY is willing to allow CITY OF SAN MATEO employees, agents, contractors, and consultants to enter the Properties for the purpose of trucking off-site sludge from the gravity belt thickener under the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:

1. Right of Entry. CITY hereby grants to CITY OF SAN MATEO a temporary right of entry, as hereinafter described, on the Properties. Said right of entry is subject to all licenses, easements, leases, encumbrances, claims of title and agreements, affecting the Properties.

2. Purpose . Subject to the limits herein stated, the right of entry granted herein is a right to enter onto the Properties for the purposes of trucking off-site sludge from the gravity belt thickener (the "Project") for the purpose of starting

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up the CITY OF SAN MATEO’S new Wastewater Treatment Plant, and at the locations shown on Exhibit A.

Hauling sludge off-site by the CITY OF SAN MATEO will entail the following:

Requirements of City of San Mateo:

1. Provision of all necessary trucks, mixing storage tank, pumps, piping, standby power and fuel to pump from the gravity belt thickener into the trucks. It is anticipated that 1 mixing storage tank and associated generator, and one trailer mounted diesel pump will be required.

2. Make necessary piping modifications on the discharge of the thickened sludge pump to allow conveyance to the mixing storage tank.

3. To haul the necessary sludge for startup of the CITY OF SAN MATEO’S new Wastewater Treatment plant will require up to 4 truck trips per day over a period of 20 working days (Monday through Friday). The trucks are anticipated to be tractor trailer truck up to 60 foot in length.

4. Upon completion of project remove all temporary facilities, convert thickened sludge pump discharge piping to original configuration and leave site to pre-existing conditions.

Requirements of City of Hollister

1. Adjust speed of gravity belt thickener and dosage of polymer to create 2 to 3 percent sludge.

2. Confirm the existing thickened sludge pump is operable.

3. Allow use of existing thickened sludge pump to pump sludge off of gravity belt thickener into mixing storage tank.

4. Provide “seed” sludge to City of San Mateo at no cost.

3. Limitations. Activities conducted pursuant to this right of entry shall be conducted only after CITY OF SAN MATEO has determined that no underground utilities or other hazards exist in the area of the proposed sludge hauling operation.

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4. Term. Subject to the termination provision set forth in Section 6 below, the term of the right of entry shall be for a period of 60 days and begin upon execution of this Agreement by CITY or when the CITY OF SAN MATEO provides two weeks’ notice that sludge hauling operations will begin, whichever occurs later.

5.Terms and Conditions. The Right of Entry is given subject to the following terms and conditions.

5.1 No entry shall be made until CITY has received and approved: a schedule and scope for the proposed work and a list of the names of all agents and contractors of the CITY OF SAN MATEO
authorized by CITY OF SAN MATEO to enter the Properties.

Notice shall be provided to the CITY at least two weeks’ prior to the requested date of entry to coordinate site access and safety requirements for entry.

5.2 CITY OF SAN MATEO shall be responsible for coordination of work to avoid any utility conflicts, or conflicts with any Properties facilities and/or operations.

5.3 CITY OF SAN MATEO and its employees, agents and contractors shall comply with all applicable local, state, and federal laws and regulations including those laws which govern worker health and safety and reporting the use, handling, treatment, removal, or disposal of toxic or hazardous substances, materials or wastes, including without limitation all substances described in the definition of Hazardous Materials set forth in Exhibit B attached hereto and incorporated herein, which may exist on the Properties (hereinafter "Hazardous Materials"); and shall obtain all required regulatory and governmental permits and licenses necessary to perform the work hereunder; shall conduct their operations on the Properties so as to avoid unfavorable impact upon the environment; shall comply with all applicable provisions of the Environmental Quality Act of 1970 (California Public Resources Code, Sections 21,000, et. seq.); and shall take all required steps to minimize dust and noise in conformance with neighborhood and governmental standards.

5.4 All tools, equipment, and other property taken upon or placed upon the land by the CITY OF SAN MATEO shall remain the property of the CITY OF SAN MATEO and may be removed by the CITY OF SAN MATEO at any time within a reasonable period after the expiration of this permit or right-of-entry. CITY shall not be responsible for any tools, equipment or other property stored

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or left on the Properties by the CITY OF SAN MATEO or its employees, agents and contractors.

5.5 Two (2) weeks prior to its entry onto the Properties, CITY OF SAN MATEO shall provide CITY with certificates of insurance or self-insurance acceptable to CITY from any contractor used by CITY OF SAN MATEO to conduct the activities covered by this Right of Entry, showing CITY as an additional insured party upon request and effective for the term of this right of entry. Insurance Coverage provided by contractors shall meet, at a minimum, the requirements set forth in Exhibit C attached hereto and incorporated herein.

5.6 CITY OF SAN MATEO and its employees, agents and contractors shall properly and lawfully transport and dispose of any and all drill cuttings, purged water and Hazardous Materials generated by the work of such parties on the Properties.

5.7 CITY OF SAN MATEO hereby agrees to indemnify, defend, assume all liability for and hold harmless CITY and its officers, employees, agents and representatives from any and all liability for any loss, damage, liability, or liability for damages, whether for loss of or damage to Properties, or injury to. or death of persons, which may arise out of operations by CITY OF SAN MATEO, its employees, agents or contractors on the Properties, except as such loss or damage as is caused by or arises out of the active negligence or willful misconduct of CITY, its agents, officers or employees. The foregoing shall include any loss, damage, claim, or liability for damages or injury caused by or resulting from generation of Hazardous Materials, or the creation of increased hazard to the public from existing materials arising from the operations of CITY OF SAN MATEO, its employees, agents or contractors.

5.8 Nothing herein shall be deemed to relieve the CITY OF SAN MATEO, its employees, agents or contractors from responsibility for any loss, damage, claim, or liability for damages or injury resulting from its activities conducted on CITY property.

5.9 If any action of the CITY OF SAN MATEO employees or agents in the exercise of this right-of-entry results in damage to the real property, the CITY OF SAN MATEO will, at its option, either repair such damage or make an appropriate settlement with the CITY.

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5.10 Nothing herein shall be construed as a grant of title or any interest in the Properties.

5.11 Nothing herein shall be construed as an admission of liability by CITY of its responsibility as to any Hazardous Materials which may be found on the Properties, nor, except as expressly provided herein, as an admission of liability by CITY OF SAN MATEO as to any Hazardous Materials which may be found on the Properties.

5.12 CITY OF SAN MATEO shall obtain and maintain all necessary permits from the relevant agencies and comply with all current laws, ordinances, orders, rules, regulations and permits with respect to its performance of the activities relevant to this right of entry.

5.13 All work shall meet the requirements of the Standard Specifications of the City of Hollister for Public Works Construction.

5.14 CITY OF SAN MATEO will provide CITY with copies of all reports, data, maps, and other documentation prepared concerning the work at the Properties.

5.15 CITY shall have access to observe and to inspect any and all activities during the term of this Right of Entry.

6. Termination of Right of Entry. Either party shall have the right to terminate this Right of Entry, without cause, by giving not less than seven (7) days written notice of termination.

7. Notices. All notices given in conjunction with this Agreement shall be written, and shall be effective three (3) days after deposit in the U.S. Mail, first class postage prepaid to the applicable address stated below, or to such other address as the party may designate by written notice:

CITY OF SAN MATEO: CITY OF SAN MATEO
Public Works Department
330 W. 20th Ave
San Mateo, CA 94403
Attn: Matt Fabry, Director of Public Works
(650) 522-7300
CITY OF HOLLISTER: City of Hollister

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William Via
Public Works Department
1321 South Street
Hollister, CA 95023
(831)-636-4370

8. Headings and Titles: The captions and paragraphs of this Right of Entry are only to assist the parties in reading and understanding this Right of Entry and shall have no effect upon the construction or interpretation of any part thereof.

IN WITNESS WHEREOF, the parties have executed this instrument the day and year first above written.
"CITY"
APPROVED AS TO FORM: CITY OF HOLLISTER, a municipal corporation By:

Name Name
Title Title
“CITY OF SAN MATEO”
CITY OF SAN MATEO, a municipal
government agency
By:

Matt Fabry
Public Works Director
Date:

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EXHIBIT B

HAZARDOUS MATERIALS
For the purpose of this Agreement, “Hazardous Materials” shall mean any and all (a) substances, products, by-products, waste, or other materials of any nature or kind whatsoever which is or becomes listed, regulated or addressed under any Environmental Laws, and (b) any materials, substances, products, by-products, waste, or other materials of any nature or kind whatsoever whose presence in and of itself or in combination with other materials, substances, products, by-products, or waste may give rise to liability under any Environmental Law or any statutory or common law theory based on negligence, trespass, intentional tort, nuisance, strict or absolute liability or under any reported decisions of any state or federal court; and (c) any substance, product, by-product, waste or any other material which may be hazardous or harmful to the air, water, soil, environment or affect industrial hygiene, occupational, health, safety and/or general welfare conditions, including without limitation, petroleum and/or asbestos materials, products, by-products, or waste.

For the purpose of this Agreement, “Environmental Laws” shall mean and include all federal, state, and local laws, statutes, ordinances, regulations, resolutions, decrees, and/or rules now or hereinafter in effect, as may be amended from time to time, and all implementing regulations, directives, orders, guidelines, and federal or state court decisions, interpreting, relating to, regulating or imposing liability (including, but not limited to, response, removal, remediation and damage costs) or standards of conduct or performance relating to industrial hygiene, occupational, health, and/or safety conditions, environmental conditions, or exposure to, contamination by, or cleanup of, any and all Hazardous Materials, including without limitation, all federal or state superlien or environmental clean-up statutes.

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EXHIBIT C

INSURANCE REQUIREMENTS
CITY OF SAN MATEO shall procure and maintain for the duration of the agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the CITY OF SAN MATEO, its agents, representatives, employees or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1.Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2.Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if CITY OF SAN MATEO has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

If the CITY OF SAN MATEO maintains broader coverage and/or higher limits than the minimums shown above, the City of Hollister (Entity) requires and shall be entitled to the broader coverage and/or the higher limits maintained by the CITY OF SAN MATEO. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CITY OF SAN MATEO including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the CITY OF SAN MATEO’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the CITY OF SAN MATEO’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any

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insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the CITY OF SAN MATEO’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.

Umbrella or Excess Policy
The CITY OF SAN MATEO may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the CITY OF SAN MATEO’s primary and excess liability policies are exhausted.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the Entity.

Waiver of Subrogation
CITY OF SAN MATEO hereby grants to Entity a waiver of any right to subrogation which any insurer of said CITY OF SAN MATEO may acquire against the Entity by virtue of the payment of any loss under such insurance. CITY OF SAN MATEO agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the Entity. The Entity may require the CITY OF SAN MATEO to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Entity. The CGL and any policies, including Excess liability policies, may not be subject to a self-insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by Entity. Any and all deductibles and SIRs shall be the sole responsibility of CITY OF SAN MATEO or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. Entity may deduct from any amounts otherwise due CITY OF SAN MATEO to fund the SIR/deductible.

Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible.

Entity reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with

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a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Entity.

Claims Made Policies (note – should be applicable only to professional liability, see below)
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 CITY OF SAN MATEO must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
CITY OF SAN MATEO shall furnish the Entity with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the Entity before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CITY OF SAN MATEO’s obligation to provide them. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 8 Section Name: CONSENT CALENDAR Account Number: 18-6114 File ID: 24-8462 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: March 18, 2024
SUBJECT:

Senior Get Around Transportation Program Agreement – Amendment RECOMMENDATION:

Approve Amendment No. 1 to the Agreement with Serra Yellow Cab, Inc. in the amount of $75,000, for a new contract total of $225,000, for the Senior Get Around Transportation Program for Fiscal Year 2023-24; and authorize the Director of Parks and Recreation to execute the amendment in substantially the form presented.

BACKGROUND:

The Parks and Recreation Department facilitates the Senior Transportation “Get Around” Program. This program was initiated in January of 2018. Since the inception of this senior transportation program, active ridership has dramatically increased on an average monthly from 125 riders in FY 2021-22, 398 riders in FY 2022-23 to 444 active riders this FY 2023-

24. In June 2023, the City Council approved a contract for Fiscal Year 2023-24 with Serra Yellow Cab, Inc. in the amount of $150,000 to facilitate the Get Around Program. It was believed that even with the increase in cost of services and increased volume of ridership from previous years, the approved $150,000 would suffice programmatic operations.

However, with the significant recent increase in ridership compiled with the increase in cost for wheelchair accessible rides, it is projected that for FY 2023-24, the cost of the service will require additional funding of $75,000, increasing the annual contract total from $150,000 to $225,000 for the remainder of the fiscal year.

BUDGET IMPACT:

Additional funding for this program is available from the City/County Association of Governments (C/CAG) Lifeline Transportation Program Cycle C funding, City matched funds, and Measure S Funds, there is adequate funding for this contractual increase.

ENVIRONMENTAL DETERMINATION:

This amendment is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Serra Yellow Cab, Inc. - Amendment No. 1

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STAFF CONTACT
Stephanie Douglas, Community Services Section Manager
[email protected]
(650) 522-7442

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AMENDMENT NO. 1 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
SERRA YELLOW CAB, INC. FOR FISCAL YEAR 2023-2024
($150,000 [Original Amount], $225,000 [Amendment 1])
This Amendment is made and entered into this day of March __, 2024, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and a Serra Yellow Cab, Inc. ("CONTRACTOR").

WHEREAS, the City and Contractor wish to amend that certain Agreement dated June 23, 2023, by adding $75,000 to the amount payable, for a total Agreement amount of up to $225,000.

NOW, THEREFORE, the parties agree as follows:

1. Section 5 of the Agreement is amended to read:
“Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR a fee in an amount of up to $225,000 for fiscal year 2023-2024, pursuant to rates stated in Exhibit B, attached and incorporated by reference.”

2. Exhibit B of the Agreement is amended to read:
“CONTRACTOR will submit an itemized invoice to the CITY by the 20th of each month to evidence all rides provided. Invoices shall be sent to: San Mateo Parks and Recreation Attn: Senior Transportation “Get Around” Program 330 West 20th Avenue San Mateo, CA 94403. The CITY will send invoiced payment within 30 days of receipt of the invoice. Payments shall be sent to: Serra Yellow Cab of Daly City Inc. Attn: Talib Salamin 195 87th Street #D Daly City, CA 94015.

Transportation rates will be charged at the following rates: Rides that over 5 miles will be charged $25.10 starting fee, plus $3.00 per mile on the 5 plus mile, plus 15% service fee. Any rides that are less than five miles will be charged a five- mile rate of $25.10. Wheelchair accessible rides will be charged a $40.00 starting fee (flag drop), plus $3.00 dollars a mile, plus 15% service fee. Any wheelchair accessible rides that are less than five miles will be charged a five-mile rate of $40.00. An additional $0.30 click charge will be incurred for trips slowed by excessive traffic or other uncontrollable circumstances.

The senior patrons will pay the first $5.00 and the remaining fee will be paid by the City. The City of San Mateo will not pay for any gratuity or tipping. Any tips will be left to the rider’s discretion. All fees, taxes and services under this

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Agreement shall not exceed $225,000 for fiscal year 2023-2024.

3. The remaining terms of the Agreement remain in full force and effect.

IN WITNESS WHEREOF, CITY OF SAN MATEO and CONTRACTOR have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Joanne Magrini
Parks and Recreation Director
APPROVED AS TO FORM:
_______________________________________
Mazarin Vakharia
Assistant City Attorney
Date Talib Salamin
Serra Yellow Cab of
Daly City Inc.

President
Date

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 9 Section Name: CONSENT CALENDAR Account Number: 25-3112 File ID: 24-8475 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: March 18, 2024
SUBJECT:

General Plan, Housing Element, and Housing Successor Agency – 2023 Annual Progress Reports RECOMMENDATION:

Accept the 2023 Annual Progress Reports for the General Plan, Housing Element, and Housing Successor Agency, and direct the Community Development Director to file the reports with the State.

BACKGROUND:

Government Code Sections 65400 and 65700 require local planning agencies to submit an Annual Progress Report (APR) on the status of their General Plan and Housing Element implementation to the local legislative body. The APR is then required to be submitted to California Department of Housing and Community Development (HCD) and Office of Planning and Research (OPR) by April 1st of each year. Hence, the Community Development Department (CDD) is seeking acceptance of the General Plan and Housing Element Annual Progress Reports (Attachments 1 and 2) by City Council, prior to submittal to OPR and HCD. This report also includes information related to Accessory Dwelling Unit (ADU) development within the City since adoption of the updated ADU Ordinance on March 21, 2022, which allowed for greater flexibility beyond the minimums required by state law.

The City’s annual Housing Successor Report, as required by California Health and Safety Code Section 34176.1(f), is included as Attachment 3. This report provides details of the housing funds, assets, and activities of the City of San Mateo, which is acting as the Housing Successor Agency of the former Redevelopment Agency of the City of San Mateo.

General Plan Annual Progress Report Summary
The General Plan is a State-mandated document that sets the framework for the City’s physical, social, and economic development into the future. In 2018, California Government Code Section 65700(b) was amended to make the General Plan Annual Progress Report (APR) requirement applicable to charter cities. In prior years, charter cities were only required to submit an APR that documented progress made toward implementing their certified Housing Element. The City submitted its first General Plan APR in 2020.

The City’s General Plan APR (Attachment 1) highlights the accomplishments in 2023 in implementing land use related goals, policies, and actions. Through the accomplishments highlighted in the APR, the City continues to work to achieve a healthy economic, social, and physical environment to serve the San Mateo community. The APR includes the following key information:
Planning activities initiated or completed by the City in 2023; Highlights of major planning applications approved in 2023; Building permit and construction status of major development projects; and Implementation summary of General Plan goals, policies and actions pertaining to land use.

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This will be the last APR that is submitted for the current General Plan 2030, with next year’s APR focused on General Plan 2040, which is scheduled for adoption at this meeting (March 18, 2024).

Housing Element Annual Progress Report Summary
While the Housing Element is a part of the General Plan, the Housing Element APR is subject to additional and specific requirements not applicable to other elements of the General Plan. The Housing Element APR has been prepared pursuant to California Government Code Section 65400 and includes a detailed accounting of all housing projects submitted, reviewed, entitled, and constructed in the City in 2023. The APR also provides an update on the implementation on each of the Housing Element’s policies and programs to achieve the City’s housing vision.

This is the first APR on the City’s 2023-2031 Housing Element for the sixth housing cycle, and it includes the following information:
Progress report on implementation of the Housing Element programs 1 (Attachment 2 - Table D):
Progress in meeting the City’s share of regional housing needs assessment (RHNA) by income level; Information on the types of housing units that were issued building permits, as well as those that were completed; and
Information on number of planning applications submitted, as well as those that were approved.

During the 2023 reporting period, the City’s primary focus was on preparing a Housing Element that could achieve certification by HCD, and on January 19, 2024, HCD notified the City that its updated Housing Element was in substantial compliance with state law. Staff is now preparing to bring the updated Housing Element before the Planning Commission in April and City Council in May for adoption. However, in addition to the work on the Housing Element itself, there has been meaningful progress on Housing Element implementation, including the following achievements:
Waters Park, a 190-unit housing project is nearing completion of construction. Of those 190 units, 31 units completed construction in 2023;
406 E. 3 rd Avenue, a 25-unit mixed-use housing project was constructed; The Planning Application for Nazareth Vista (616 S. B Street), a 48-unit mixed-use housing project received entitlement approvals;
Accessory Dwelling Unit (ADU) production saw 83 permits issued and 50 units completed, which is above the City’s annual production target of 55 permits issued;
Objective Design Standards (ODS) was adopted in 2023 and provides streamlined review for qualifying multi-family and mixed-use housing projects; and
The administrative approval threshold for new housing development increased from 5 to 25 units, which will allow for a more streamlined planning approval process for smaller housing projects.

Table 1 below summarizes some of the key data contained in Table A-2 regarding housing units and their affordability levels, included in planning applications submitted and approved in 2023; as well as building permits issued and completed/constructed (certificate of occupancy). Per HCD definition, applications submitted are applications that have been determined complete by the jurisdiction.

Table 1 - 2023 Housing
Units Summary Table Very Low Low Moderate
Above
Moderate Total Report Table
Planning Applications
Units Submitted 19 3 2 160 184 Table A
Units Disapproved 0 0 0 0 0 Table A
Total Units Approved 7 3 2 52 64 Table A
Building Permits
1 This report covers the latest Housing Element programs that HCD determined to be in substantial compliance with State housing laws on January 19, 2024.

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Permit Issued 24 24 20 24 92 Table A-2
Certificate of Occupancy 23 24 19 56 122 Table A-2

Tables A and A-2 in the attached APR also indicate what type of housing units are approved and built. In addition to regular housing units, the production of ADUs is also included in the housing numbers outlined in Table 1. In 2023, 83 ADU building permits were issued and 50 ADU permits were constructed. For comparison, in 2022, 84 ADU permits were issued and 53 ADU permits were constructed. The City’s annual ADU target is 55 building permits issued per year.

Table B in the attached APR shows the progress of housing unit production by affordability level as defined by issuance of building permits for the first year of the current housing cycle (2023-2031). The City has achieved 141 units or 2% of its allocation for total new housing units, as shown in Table 2 below. For comparison, the City reported 368 units in 2022. Due to increasing interest rates and a more challenging environment for construction financing, multiple development projects with housing units that were previously approved have received and been granted deadline extensions. These projects are expected to get built once there are favorable financial market conditions.

Table 2 – RHNA and Housing Construction
Projection Period
(6/30/22-1/30/23)
2023 Total Units Total RHNA
Total Housing Units 49 92 141 7,015
Very Low Income Units 1 24 25 1,777
Low Income Units 13 24 37 1,023
Moderate Income Units 25 20 45 1,175
Above Moderate-Income Units 10 24 34 3,040

For the 2023 reporting period, a new table (Table K) was added by HCD to report any local tenant preference ordinance, which the City does not have currently. Table I, which previously reported on lot split projects pursuant to Senate Bill 9, was removed and incorporated into Tables A and A-2. No SB 9 applications were received in 2023. However, the City processed one SB 9 application in 2022 that received building permit issuance in 2023. The City reported the status of several activities supported by the Local Early Action Program (LEAP) grant, which includes the 2023-2031 Housing Element update and progress on housing policies and code amendments. Table H provides information on three City owned surplus sites. The City did not have anything to report in the following Tables: C) Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law; E) Commercial Development Bonus Projects; F) United Rehabilitated, Preserved and Acquired for Alternative Adequate Sites; F2) Above Moderate Income Units Converted to Moderate Income Units; G) Locally Owned Lands that have been sold, leased or otherwise disposed of; J) Student Housing Development for lower-income students; and K) Tenant Preference Policy.

Accessory Dwelling Units
Following adoption of the City’s ADU Ordinance on March 21, 2022, the City Council directed staff to provide annual updates on the implementation of the Ordinance. ADUs have become an increasingly popular solution to provide additional living units in residential neighborhoods. Any ADU that meets the standards outlined in the City’s adopted ADU Ordinance is approved with a ministerial permit. The majority of ADU proposals in the City of San Mateo conform to these development standards and are processed ministerially. In order to allow for flexibility and creative ADU designs, the City offers a discretionary permit application option through an Accessory Dwelling Unit Discretionary Review (ADUDR) Planning Application process to consider proposals for ADUs that are not in full compliance with the development standards outlined in the adopted ADU Ordinance. ADUDR applications are currently processed at no additional cost to the applicant as a pilot. The City began processing ADUDR applications after adoption of the ADU Ordinance in 2022, and a total of 11 ADUDR applications have been submitted since going into effect. Of the 11 total applications, six proposed the expansion of an existing structure within a legal non-conforming setback of less than four feet from a property line, four proposed a second-story balcony, and one proposed a height exceedance. Five of the 11 submittals have been approved, five are currently incomplete applications under review, and one was withdrawn. For the withdrawn ADUDR application,

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the applicant revised the proposal to conform to ADU development standards and resubmitted for a ministerial permit. An overview of all ADUDR applications received to-date are summarized in Table 3 below.

Table 3 – Accessory Dwelling Unit Design Review (ADUDR) Planning Applications Application # Year Reason for ADUDR Determination
PA22-048 2022 Expansion of existing structure within required setbacks Approved PA22-049 2022 Height exceedance Approved
PA22-082 2022 Expansion of existing structure within required setbacks Approved PA22-084 2022 Expansion of existing structure within required setbacks Approved PA23-023 2023 Second-story balcony Under Review/Incomplete PA23-048 2023 Second-story balcony Withdrawn
PA23-059 2023 Second-story balcony Under Review/Incomplete PA23-086 2023 Expansion of existing structure within required setbacks Approved PA23-091 2023 Expansion of existing structure within required setbacks Under Review/Incomplete PA24-001 2024 Second-story balcony Under Review/Incomplete PA24-006 2024 Expansion of existing structure within required setbacks Under Review/Incomplete Housing Successor Report Summary
The purpose of the Housing Successor Report (Attachment 3) is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the City of San Mateo acting as the Housing Successor of the former Redevelopment Agency of the City of San Mateo as required by State law for the fiscal year July 1, 2022 to June 30, 2023.

During the FY 22/23 reporting period the City received $339,193 in new revenues from loan repayments, which contributed to a fund balance of $2,482,334 as of June 30, 2023. $2,560,924 of this fund is reserved for existing housing commitments, including the Kiku Crossing affordable housing project. Although this results in a negative unrestricted fund balance, it is anticipated that the Kiku Crossing project will not utilize all the funds reserved. The project will also repay all remaining funds to the City.

BUDGET IMPACT:

There is no impact on the General Fund for this report.

ENVIRONMENTAL DETERMINATION:

This Annual Progress Reports on the General Plan, Housing Element and Housing Successor Agency is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – General Plan Annual Progress Report, 2023
Att 2 – Housing Element Annual Progress Report, 2023
Att 3 – Annual Housing Successor Report, FY 2022-2023

STAFF CONTACT
Linda Ly, Associate Planner Nicky Vũ, Housing Specialist II [email protected] [email protected]
(650) 522-7217 (650) 522-7229

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GENERAL PLAN

ANNUAL PROGRESS REPORT
2023
PREPARED BY:

COMMUNITY DEVELOPMENT DEPARTMENT
330 W. 20TH AVENUE
SAN MATEO CA 94403
(650) 522-7212
[email protected]

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1. INTRODUCTION AND PURPOSE OF THIS DOCUMENT
State of California Government Code Sections 65400 and 65700 requires local planning agencies to provide an annual update to their legislative body, the Governor's Office of Planning and Research (OPR), and the State Department of Housing and Community Development (HCD) on the status of the General Plan, Housing Element and progress in its implementation. The APR is required even when a city may be undertaking a General Plan comprehensive update. State law requires that the General Plan Annual Progress Report (APR) be completed and submitted to the state each year for the previous year.

This General Plan Progress Report looks at the City of San Mateo’s progress in implementing land use related goals, policies and actions during the period beginning January 1, 2023, and ending on December 31, 2023.

2. GENERAL PLAN BACKGROUND AND CONTENT
California law requires that every city and county adopt a long-term General Plan that addresses seven specific topics or “elements,” organized in any format or structure preferred by the community. The General Plan may also address other topics the community feels are relevant. Regardless of the format or issues addressed, the Plan must be internally consistent.

San Mateo’s General Plan 2030 was adopted on October 18, 2010. Community participation played an important role in preparing the City’s General Plan. Community feedback helped shape the General Plan’s Vision and in developing policies and implementation actions. Community participation included residents, businesses, as well as civic and professional organizations were engaged during the General Plan preparation stage. Additionally, other agencies and utilities were consulted including the Native American tribes, county agency, school districts, water districts, and regional transportation agencies.

At the time of its adoption, San Mateo’s General Plan 2030 complied with applicable OPR General Plan Guidelines.

The General Plan 2030 is organized into seven elements that meet the State requirements, as shown in Table 1 - General Plan Contents.

Table 1 - General Plan Contents
Required Plan
Topics1
San Mateo General Plan
2030 Elements
Issues Covered
Land Use Land Use Community character, land use, development, economic development, planning activities, public facilities, regional coordination, sustainability
Urban Design Focal points, corridors, gateways, design
Housing Housing Housing, sustainability
Circulation Circulation Transportation, mobility, regional coordination Conservation,
Open Space
Conservation, Open Space,
Parks and Recreation
Biological resources, open space, cultural resources, parks and recreation, sustainability
Noise Noise Noise
Safety Safety Natural and man-made hazards (flooding, geologic, seismic, hazardous waste, wild fires, waste water, etc.), mitigation planning
1 Senate Bill 1000 (2016) – For communities with disadvantaged communities (as defined in California Government Code 65302), SB 1000 requires the local jurisdiction to provide an Environmental Justice element, or equivalent, in its General Plan that identifies the location of the disadvantaged communities and their environmental burdens, health risks and needs.

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City’s Responsibility
The effectiveness of the General Plan ultimately depends on how it is implemented and maintained over time. State law requires that most actions of local governments affecting the physical environment be consistent with the General Plan. General Plan implementation is the responsibility of numerous departments including City Attorney, City Manager’s Office (Economic Development), Community Development Department, Finance Department, Information Technology Department, Information Technology Department, Parks and Recreation Department, Police Department and Public Works Department to name a few.

Additionally, several other governmental agencies and utilities provide services within the City’s boundary. While these agencies are neither part of the City’s operational structure nor directly responsible for implementation of the General Plan, the City does coordinate its activities with these other agencies and relies upon their assistance for full implementation of the General Plan. These agencies include but are not limited to: San Mateo Consolidated Fire District, water districts (California Water Company, Estero Water District), school districts (San Mateo Foster City Unified School District, San Mateo High School District, California State College System), and County of San Mateo.

3. DATE OF PRESENTATION/ACCEPTANCE BY THE LOCAL LEGISLATIVE BODY.

The General Plan Progress Report 2023 is scheduled for City Council review on March 18, 2024.

4. IMPLEMENTATION.

The Progress Report is focused on land use actions in implementing the General Plan. As some of the General Plan goals, policies and action items have been implemented through the adoption of ordinances or resolutions; or incorporated into the City’s regular governmental activities in previous years, they are not individually listed in the Progress Report; but are rather noted in Exhibit A as “ongoing” along with a brief description. For example, this includes “ongoing” work in the City’s Development Review process as development proposals are reviewed for consistency with the City’s policies. Exhibit A is not a comprehensive list of all policies and action items in the General Plan, rather it summarizes the implementation status of select land use related goals, policies and actions. The purpose of providing Exhibit A is to streamline the review and highlight the City’s progress efficiently.

5. HOUSING ELEMENT ANNUAL PROGRESS REPORT REQUIREMENTS.

State law requires local agencies to complete an annual review of the implementation of the programs in the Housing Element toward meeting City’s Regional Housing Needs Assessment (RHNA). The City’s Housing Successor Agency and Housing Element Annual Progress Report are provided as separate attachments to the March 18, 2024, City Council agenda report.

6. GENERAL PLAN COMPLIES WITH OPR’S GENERAL PLAN GUIDELINES.

At the time of its adoption, San Mateo’s General Plan 2030 complied with applicable OPR General Plan Guidelines. Subsequent amendments to the General Plan, including the two adopted by the City in 2020, also complied with applicable OPR General Plan Guidelines. The City did not review or approve any amendment requests in 2021, 2022 and 2023.

7. DATE OF THE LAST UPDATE TO THE GENERAL PLAN.

The City Council adopted General Plan 2030 on October 18, 2010. The General Plan was amended in November 3, 2020, due to passage of Measure Y, a voter approved initiative that imposes growth limits on new developments.

8. PRIORITIES FOR LAND USE DECISION MAKING ESTABLISHED BY THE LOCAL LEGISLATIVE BODY.

The following highlights major legislative actions by the City Council that support the goals of the General Plan:

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A. Minimum Residential Densities in Mixed Use Projects, Community Benefits and Density Bonus – In 2023, the City contracted with a consultant to evaluate minimum residential requirements in mixed-use projects and update existing Density Bonus/Community Benefits program and inclusionary family housing (two- and three-bedroom affordable housing units) policies. The City anticipates presenting policy options and recommendations to City Council in 2024.

B. Mechanical Parking Standards – In 2021, the City initiated an update of the parking standards to establish interim parking standards to include mechanical parking; thereby setting into motion the opportunity for new developments to utilize mechanical parking systems in lieu of, or in combination with, traditional surface parking or parking garages. On January 3, 2022, the City Council approved interim Parking Standards for Mechanical and Automated Parking Systems which may be utilized in multifamily developments and mixed-use developments that include housing.

Staff continues to research best practices and anticipates combining this effort with other Zoning Code amendments in 2024/2025.

C. Objective Design Standards and Code Amendments – The City Council on November 20, 2023, adopted Objective Design Standards for specific types of residential and mixed-use projects that went into effect in January 2024. The Objective Design Standards (ODS) allows for a more streamlined Design Review process, and the associated code amendments also allow for the staff level (Zoning Administrator) approval of qualifying housing projects of up to 25 units, subject to ODS.

D. Code Amendments for Streamlined Review – As part of the Community Development Department’s ongoing effort to update the Zoning Code, the City initiated several code amendments in 2023 to provide a further streamlined review process for projects. Code amendments include allowing staff level (Zoning Administrator) approval of qualifying requests for minor modifications and extensions of approved planning applications. The City also clarified building height limitations and exemptions to reflect current building elements and terminology. These amendments were adopted by City Council at the August 21, 2023 and September 5, 2023 meetings.

9. AMENDMENTS TO THE GENERAL PLAN.

State law allows the City to amend its General Plan no more than four times per year. Amendments may be proposed and acted upon at any time during the year and one action may include multiple amendments. Any changes to the General Plan require public hearing by the City Council and evaluation of the environmental impacts as require by the California Environmental Quality Act.

No applications for General Plan amendment was submitted or approved in 2023.

10. MAJOR MILESTONES AND PROJECTS.

The following highlights major planning activities and projects that support the goals of the General Plan. Some of the projects are partially funded through grants, these have been identified with an “*”.

Community planning activities/programs are multi-year initiatives and, for the purposes of the APR, the information below includes a status summary for projects that were initiated, continued or completed in 2023.

Background on Grants
SB 2 Planning Grant – The City was awarded $310,000 in grant funding from the California Department of Housing and Community Development (HCD) for a Comprehensive Development Impact Fee Study, adoption of ADU/JADU code amendments, and development of Objective Design Standards for

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multifamily projects. The City executed an Agreement with HCD on December 10, 2019, and completed a close out report on November 30, 2023, confirming completion of the above projects.

Local Early Action Planning (LEAP) Grant – The City was awarded $500,000 in grant funding from the California Department of Housing and Community Development (HCD) for planning initiatives to increase the supply of housing and remove barriers. The grant funds a significant portion of the update of the Housing Element as well as development of an automated and mechanical parking system ordinance to provide an alternative to traditional parking, code amendments and development of several housing policies including community benefits program, minimum residential requirements in mixed-use projects, and updated density bonus program. The City withdrew a Downtown Parking Study due to passage of Assembly Bill 2097, which removes minimum parking requirements for projects located within a half-mile of a major transit stop and applies to the downtown area. The city entered into a formal agreement with HCD in February 2021, and initiated work on the projects as described in the planning activities below.

Caltrans Sustainable Transportation Planning Grant – The City was awarded approximately $490,000 from the Caltrans Sustainable Communities grant to fund the San Mateo Complete Streets Plan and received notice to proceed in mid-December 2021, and initiated work on the project as described below. In 2023, Phase 1 and 2 of outreach was completed with adoption of the Plan anticipated in mid- 2024.

Planning Activities
A. Objective Design Standards* - In 2017, the Governor signed multiple housing bills including Senate Bill (SB) 35 Streamlined Approval Process (found in California Government Code Section 65913.4) which provides a streamlined approval process for certain types of multi-unit housing projects (two or more residential units) provided they meet certain conditions and are consistent with objective zoning and design review standards. In response to this new legislation, the city initiated the development of Objective Design Standards for applicable multi-unit housing projects which will include related amendments to the San Mateo Municipal Code. A virtual workshop was held on June 1, 2021, to gather community input and a public study session meeting was held on August 24, 2021, with the Planning Commission to gather additional public input and Planning Commission direction. In 2023, the City staff and consultant team continue to make progress in developing design standards based upon the feedback received at two community workshops held in April and August with developers and community members, and a study session and recommendation hearing with the Planning Commission on August 8, 2023, and October 24, 2023. On November 20, 2023, the Objective Design Standards and associated code amendments were approved by the City Council and became effective January 3, 2024.

B. Housing Element Update* – In 2020, the city entered a multi-year contract with a consultant to assist with the update Housing Element (6th Cycle) to meet the City’s Regional Housing Needs Assessment (RHNA) and comply with applicable state laws. Between 2021 to 2022, the city held several virtual community workshops and pop-up activities and conducted an online survey to gather community and stakeholder input and held study sessions with the Planning Commission and City Council to gather input on existing policies and programs and suggestions for new ones.

Additionally, the City participates in 21 Elements, which is a countywide collaboration of all 21 jurisdictions in San Mateo County that meets monthly to work together on Housing Element issues.

In 2023, the City staff and consultant team continue to make further progress in the development of the Housing Element. The City’s 6th Cycle Housing Element was initially adopted by the City Council on January 24, 2023, then further revised throughout 2023 in response to comments received by the California Housing and Community Development Department (HCD) and the public.

The City submitted revised versions in January, August, and November, to add clarifying

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information on the City’s General Plan Update efforts, housing sites inventory, governmental constraints analysis, and Affirmatively Furthering Fair Housing policies. On January 19, 2024, and following these revisions and technical clarifications, HCD has determined the City’s updated Housing Element to be in substantial compliance with State Housing Laws. Future public hearings to consider adoption of the updated Housing Element are expected in Spring of 2024.

C. 2040 General Plan Update – The 2040 General Plan Update is a multi-year effort that began in 2018 and has a target for adoption in the first half of 2024. The General Plan Update effort was paused during most of 2020 due to the COVID-19 pandemic, with the effort being resumed in the beginning of 2021. In 2021, the City conducted an outreach and engagement effort to scope three land use and circulation alternatives, with the City Council selecting three land use and circulation alternatives for further study in August 2021. The remainder of the year was spent preparing a technical analysis that compared the differing outcomes of the alternative scenarios against a set of metrics, including environmental sustainability, traffic and circulation impacts, impacts on utilities and public services, and applicable state regulations.

In 2022, the preferred land use and circulation scenario was selected in July 2022 followed by additional community outreach and engagement and preparation of the Goals and Policies for the full General Plan during Summer and Fall 2022. The City held public meetings with the General Plan Subcommittee, the Planning Commission, and the City Council to review and receive direction on the Draft Goals and Policies.

In 2023, the City held a series of study sessions and public meetings with the City Council to review the draft Land Use plan to discuss the proposed heights, densities and Measure Y, and review the draft Environmental Impact Report. The Draft General Plan 2040 was then released in the Fall, and outreach was conducted alongside the release through various town hall meetings in each Council District, followed by meetings with the Planning Commission and City Council. The General Plan is currently scheduled for adoption by the City Council in the first quarter of 2024.

D. Complete Streets Plan* - The Complete Streets Plan will complement the City’s General Plan Update by creating an actionable plan rooted in safety for all modes and will result in policies, goals, and prioritized projects that are focused on improving mobility, equity, connectivity, and sustainability to build a better circulation network for the City’s future. The Plan will provide the basis for projects that are planned, designed, constructed, and maintained for all roadway users, allowing the City to develop a safe mobility network for many years to come.

In 2023, City staff and the consultant team completed Phases I and II of the community engagement plan. The plan is on track for adoption by City Council in mid-2024.

It should be noted that through the Plan, the City may also qualify for future grant opportunities to implement Plan programs and capital improvement projects.

Major Construction/Development Projects
Planning applications that were submitted during one reporting year typically receive their entitlements in the next reporting year. Consistent with the GP APR reporting requirements, planning application entitlements that were approved during the reporting year are included in the APR report. During 2023, the City approved entitlements for 61 net new residential units and made progress on several publicly funded projects. Major projects are highlighted below with a brief status update:

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1, 2, and 3 Waters – On January 23, 2019, the City Council approved a 190-unit residential development, replacing the 11.1-acre Waters Technology Office Park. The new development consists of a mix of housing types. Building permits were issued in 2020. Construction continues, with 31 units completed in 2023.
1 N B St. (Formerly 303 Baldwin Ave) – Approved on January 8, 2019, the mixed-use development consists of 64-residential units, ground floor commercial/retail use and office use above. The site was formerly a local grocery store serving neighborhoods near downtown. Building permits were issued in 2020. In 2023, the project received a Temporary Certificate of Occupancy. Full completion of the project is anticipated in 2024.
406 E 3rd Ave. – Approved on May 28, 2019, this mixed-use development consists of new offices and 25 apartment units. Construction was completed in 2023.

Bay Meadows Phase II RES6 (3069 E Kyne St) – Approved on September 10, 2020, the RES 6 project consists of 54 apartment units. Building permits were issued in 2022 with construction anticipated to be complete in 2024.

Kiku Crossing – On August 17, 2020, the City Council approved a 225-unit affordable/work-force housing development and new public parking garage on two downtown parking lot sites. The project is one of the first in the state to utilize Assembly Bill 1763 which allows for taller and denser affordable housing developments near transit. Building permits were issued in 2021. Construction began in 2021 with completion anticipated in 2024. This is a publicly funded project. 435 E. 3rd Ave. – Approved on February 14, 2023, the mixed-use project consists of new offices and construction of a new 5-unit residential development. Building permit applications and subsequent construction are anticipated in future years.
616 S B Street – Approved on December 12, 2023, the mixed-use development consists of commercial ground floor retail use and 48 residential units. Building permit applications and subsequent construction are anticipated in future years.
2023 – 2024 Community Development Block Grant (CDBG)* - The City of San Mateo receives annual funding through the Community Development Block Grant (CDBG) from the United States Department of Housing and Urban Development (HUD). The CDBG program provides resources to address a wide range of community development needs, principally for low-income households. Public Works Department utilizes a portion of the funding to deliver infrastructure improvements within the CDBG priority neighborhood area. In 2023 and throughout 2024, the CDBG program is focused on intersection improvements at the Third Ave. and Norfolk St. intersection, which connects to the Third Ave. bicycle and pedestrian overcrossing at US 101.
2050 Detroit Drive (Wastewater Treatment Plant Upgrade) – On July 16, 2018, the City Council approved the multi-year project to modernize, expand, and upgrade the City’s wastewater treatment plant facility. Building permits were issued in 2019 with substantial construction work in 2020 through 2023. Temporary Certificate of Occupancy for the new Administrative Building is anticipated in early half of 2024. This is a publicly funded project.

Clean Creeks and Flood Protection Initiative – The City is committed to providing the community with reliable stormwater infrastructure to help mitigate flood risk; protect our Bay and waterways; create safer communities; and reduce impacts of pollution, climate change, and heavy storms. Clean waterways, beaches, and properly working infrastructure help protect residents and the environment.

Marina Lagoon is part of the City’s stormwater system that provides flood control and recreation

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to the entire community, and ecological/wildlife benefits. The Lagoon’s ability to maximize these benefits is compromised; and significant improvements are needed. The City conducted a survey to gather community input in Fall of 2021 and completed two public meetings in 2022 with the Sustainability and Infrastructure Commission and City Council which included a review of stormwater activities, survey results, funding analysis, and options. In 2023, San Mateo property owners voted in favor of a new Community Flood and Storm Protection Fee to further support improving the City’s aging stormwater system following the severe storms at the start of 2023. This is a publicly funded project.

North Shoreview Flood Improvement Project – The North Shoreview Flood Improvement Project include improvements to the Coyote Point and Poplar Avenue Pump Stations to increase pump capacity and raise a 1,300-foot levee segment located between the San Mateo and Burlingame border off Airport Boulevard. Construction was completed in 2023. This is a publicly funded project.

Delaware Street Safe Routes to School Corridor*: The City was awarded funds in late 2021 by the California Transportation Commission (CTC) Active Transportation Program (ATP) Cycle 5 call for projects for the Delaware Street Safe Routes to School bicycle project. This project intends to implement the Delaware Street Class IV separated bike lane and Class III bicycle boulevard as planned in the 2020 Bicycle Master Plan. This project provides necessary safety improvements in an area with a high level of traffic stress and will improve safety and connectivity to two public schools accessed from Delaware Street. During 2023, the City awarded a consultant agreement for design and construction and is working with the consultant team on the pre-project planning and design effort. 19th Avenue/Fashion Island Class IV Bicycle Facility Project: This project is part of a joint effort between the City, San Mateo County Transportation Authority (SMCTA), and SamTrans to design and construct multimodal improvements as part of the 101/92 Interchange Projects. It includes feasibility, design, and construction of Class IV separated bicycle lanes on 19th Avenue and Fashion Island Boulevard, including intersection improvements, and is expected to connect directly to a proposed Mobility Hub at the existing Caltrans Park and Ride location being constructed in parallel. In 2023, the City began working with SMCTA staff on the feasibility study for the project to identify the preferred design alternative.

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EXHIBIT A – LAND USE IMPLEMENTATION SUMMARY

GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
GOAL 1a: Maintain San Mateo as the pre-eminent city in San Mateo County. Ongoing through collective effort of all City departments.

GOAL 1b: Continue the balance between development and open space, between conserving the lower density residential neighborhoods and meeting the City's fair share of new dwellings, between residential and commercial development, between conserving old buildings and new buildings, and between jobs and housing.

The City has incorporated this into its Development Review process which includes staff from multiple departments and the San Mateo Consolidated Fire Department (a separate agency). Implementation is ongoing.

GOAL 1c: Establish a distinctive city image distinguishable from other Peninsula communities to improve the quality of both the built and natural environments and assure that future development is both of high quality and compatible with the City's existing character. Guide development to provide efficient circulation and to protect existing neighborhoods, views and natural resources.

Ongoing implementation as part of Development Review process.

Goal 1d: Concentrate major high-intensity commercial office and retail development in specific focal areas, as delineated on the City Image Plan, Figure UD-1.

Ongoing implementation as part of Development Review process.

GOAL 1e: Provide adequate transportation, utilities, cultural, educational, recreational, and public facilities, and ensure their availability to all members of the community. Establish San Mateo as the cultural center of San Mateo County.

Ongoing implementation as part of Development Review process, and in planning work such as Public Work Department's Capital Improvement Projects, Park and Recreation Department's Facilities Plan.

GOAL 1f: Provide a wide range of land uses, including retail, commercial services, office, industrial, parks, open space, and housing, to adequately meet the needs of the community.

Ongoing implementation as part of Development Review process.

GOAL 1g: Attain development which occurs in an orderly fashion and which limits adverse environmental impacts to the community. Ongoing implementation as part of Development Review process.

GOAL 1h: Encourage participation of residents and representatives of local businesses and neighboring jurisdictions in planning for and reviewing community development.

Encouraging participation is an ongoing part of Development Review process, and in community planning initiatives such as update of General Plan, Housing Element, Transit Oriented Development (TOD) Pedestrian Access Plan (aka San Mateo Walks to Transit) and Complete Streets Plan.

GOAL 1i: Consider the effects of Climate Change on the City of San Mateo. Incorporate Sustainability into the City’s policies, work programs and standard operations.

Ongoing implementation through City Council priority setting. Adopted on 4/6/2020, the Climate Action Plan sets forth goals and policies for the city to incorporate sustainability in future policy work, work programs and operations. Adopted on December 6, 2021, the 5-year Multijurisdictional Local Hazard Mitigation Plan includes climate adaptation policies and actions for the City to incorporate or implement in future work programs and operations. The cities and the County of San Mateo continue to work together to build resiliency in addressing flooding and sea level rise through the OneShoreline collaborative. For more information, see www.oneshoreline.org
POLICY LU 1.1 Planning Area Growth and Development to 2030. Plan for land uses, population density, and land use intensity as shown on the Land Use, Height and Building Intensity and City Image Plans for the entire planning area. Design the circulation system and infrastructure to provide capacity for the total development expected in 2030. Review projections annually and adjust infrastructure and circulation requirements as required if actual growth varies significantly from that projected.

Ongoing implementation as part of Development Review process.

POLICY LU 1.2 Land Use Plan. Adopt and maintain the Land Use Plan which graphically displays the intended uses and development intensity/density for all land within the planning area.

Ongoing implementation as part of Development Review process.

POLICY LU 1.3 Land Use Standards. Adopt and maintain the land use categories included in Appendix B defining the range of intended uses and linked to development intensity/density limits.

Ongoing implementation as part of Development Review process.

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GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
POLICY LU 1.4 Development Intensity/Density. Adopt and maintain the development intensity/density limits as identified on the Land Use Map and Building Intensity Plan, and as specified in Policy LU 6A.2. Development intensity/density shall recognize natural environmental constraints, such as flood plains, earthquake faults, debris flow areas, hazards, traffic and access, necessary services, and general community and neighborhood design. Maintain a density and building intensity range, with densities/intensities at the higher end of the range to be considered based on provision of public benefits such as affordable housing, increased open space, public plazas or recreational facilities, or off-site infrastructure improvements.

Ongoing implementation as part of Development Review process.

POLICY LU 1.5 Building Height. Maintain maximum building height limits contained in Appendix C, and as specified in Policy LU 6A.2, closely matched with the Land Use categories and Building Intensity standards.

Ongoing implementation as part of Development Review process.

POLICY LU 1.6 Residential Development. Facilitate housing production by carrying out the goals and policies in the Housing Element. Ongoing implementation as part of Development Review process.

POLICY LU 1.7 Multi-Family Areas. Allow multi-family areas to develop at densities delineated on the Land Use Plan. Ongoing implementation as part of Development Review process.

POLICY LU 1.8 Mixed Use Commercial-Residential. Facilitate housing production by allowing commercial mixed use development which includes multi-family dwellings in all non-residential land use categories except service commercial, manufacturing/ industrial and parks/open space.

Ongoing implementation as part of Development Review process.

POLICY LU 1.9 Single-Family and Duplex Preservation. Protect established predominantly single-family areas by limiting new development in such areas to single-family uses and protect predominantly duplex areas by limiting new development to low-density residential uses as delineated on the Land Use Map. Consider redesignating multi-family areas to single-family and low-density residential uses where such uses predominant and where the creation of additional legal non-conforming uses would be minimized.

State laws, such as those pertaining to ADUs/JADUs and Senate Bill 9, may preempt aspects of this policy.

POLICY LU 1.9a Single-Family Dwelling Projects. Enhance the livability of San Mateo neighborhoods by reviewing Single-Family Dwelling Design Review planning applications for compatibility with neighborhood character, relationship to the neighborhood, and elements of design and site layout as described in the City’s Single-Family Design Guidelines.

State laws, such as those pertaining to ADUs/JADUs and Senate Bill 9, may preempt aspects of this policy.

POLICY LU 1.9b Duplex Projects. Provide a transition between neighborhoods of differing densities by ensuring two-family dwelling construction and remodeling projects are consistent with the Duplex Design Guidelines which emphasize neighborhood character, relationship to the neighborhood, and elements of design and site layout.

State laws, such as those pertaining to ADUs/JADUs and Senate Bill 9, may preempt aspects of this policy.

POLICY LU 1.10 Commercial Development. Encourage industrial, service, retail, and office development which is compatible with the desired character of the area and with adjacent residential areas in terms of intensity of use, height, bulk and design as delineated on the Land Use Plan, Building Height Plan and Building Intensity Plan. Commercial development adjacent to residential areas shall address concerns pertaining to traffic, truck loading, trash/recycling activities, noise, visual impacts, and public safety including hazardous material storage, fire safety, air pollutant emissions and odors.

Ongoing implementation as part of Development Review process.

POLICY LU 1.11 Commercial Focal Areas. Concentrate the most intense office and retail uses at locations delineated on the Land Use Plan.

Discourage such uses outside the commercial nodes delineated on the Land Use Plan.

Ongoing implementation as part of Development Review process.

POLICY LU 1.12 Neighborhood Shopping Centers. Retain neighborhood shopping centers, with retail being the predominant use, at low to medium intensities and locations delineated on the Land Use Plan and Building Intensity Plan.

Ongoing implementation as part of Development Review process.

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GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
POLICY LU 1.13 Prohibit Residential Uses in Service Commercial/Manufacturing Areas. To promote the retention of service commercial areas which provide convenient, vital community services and a balanced local economy; prohibit new residential development in service commercial/manufacturing areas delineated on the Land Use Plan. Require businesses locating adjacent to residential areas to minimize Service commercial uses, including auto and truck repair, building material yards, and animal hospitals, are recognized as important components of the overall land use mix. They provide convenient access to needed services, generate tax revenues, and contribute to a diverse employment base. However, given the nature of these uses, provisions are needed to minimize nuisance impacts such as noise, odors, litter and blight, especially near residential neighborhoods. This may include limitations on outdoor storage, screening, and upgrade of buildings. Major service commercial strips include: Amphlett Boulevard, Claremont/Railroad Avenue and Palm Avenue.

Ongoing implementation as part of Development Review process.

POLICY LU 1.14 Special Use Permit for Residential Uses. To ensure a balanced mix of land use categories and to minimize nuisance impacts between conflicting uses a special use permit shall be required for residential uses in areas designated as neighborhood commercial, regional community commercial, and executive office on the Land Use Plan. However, mixed use land use designations are exempt from this requirement, as is development on the Hillsdale Shopping Center Property subject to the Q5 Qualified Overlay District, so long as such development is consistent with a Master Development Plan prepared consistent with the policies of this General Plan.

Ongoing implementation as part of Development Review process.

POLICY LU 1.15 Mixed Use. Encourage developments which mix commercial retail and office uses with residential uses at locations and intensities/densities as delineated on the Land Use Plan and Building Intensity Plan.

Ongoing implementation as part of Development Review process. State laws, such as those pertaining to State Density Bonus, may preempt aspects of this policy.

POLICY LU 1.16 Hotels. Encourage development of hotels in commercial areas and allow small "bed and breakfast" hotels in multiple family areas where they are consistent with the density of adjacent uses.

Ongoing implementation as part of Development Review process.

POLICY LU 1.17 Transportation Corridors. Maintain adequate transportation corridors to accommodate highway and rail transit. Consider redesignation of portions of the railway corridor not required for transportation purposes for development which is compatible with adjacent uses and does not generate significant adverse impacts.

Ongoing work by Public Works Department.

POLICY LU 1.18 Major Institutions/Special Facilities. Encourage the retention of major institutions and special facilities such as the San Mateo County Events Center, College of San Mateo, San Mateo County Hospital, Mills Health Center, and Peninsula Golf and Country Club. Allow reuse or redevelopment of institutions and special facilities subject to the approval of a Specific Plan and/or Master Plan.

Ongoing implementation; however, underutilized sites owned by a public agency may be explored for other uses including affordable housing.

POLICY LU 1.19 Legal Non-conforming Developments. Allow legally established non-conforming uses and buildings to be maintained and to be reconstructed if destroyed by fire or natural disaster; allow minor expansion of legal non-conforming developments. Encourage reconstruction and/or minor expansion to have a design which is visually compatible with surrounding development.

Ongoing implementation as part of Development Review process.

POLICY LU 1.20 Code Enforcement. As a high priority support code enforcement to ensure that all uses are in compliance with City codes and conditions of development approval.

Ongoing implementation through department work planning.

GOAL 2a: Promote economic vitality which provides jobs for existing and future residents and maintains the City's ability to finance public improvements and human services.

City does not have an economic development plan; however, City staff works with local organizations such as Chamber of Commerce and Downtown San Mateo Association, to support businesses.

GOAL 2b: Develop and implement a long-term economic development plan and take actions to create financial stability for the City and high-value-added jobs for its residents.

City does not have an economic development plan. Instead, the City responds to current needs depending upon changing economic conditions.

GOAL 2c: Promote an intensity of commercial activity that enhances the business climate in the City to increase the level of business types which will benefit existing commercial uses.

City does not have an economic development plan; however, City staff works with local organizations such as Chamber of Commerce and Downtown San Mateo Association, to support businesses.

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GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
GOAL 2d: Encourage the development and redevelopment of major sites delineated in the City's economic development plan. City does not have an economic development plan. Instead, the City responds to current needs depending upon changing economic conditions.

GOAL 2e: Maintain streamlined Development Review and Building Permit processes. Multiple City departments are involved in the Development Review process. As staff in each department evaluates existing codes, policies and procedures, they also work to update related handouts to clarify application requirements and development processing. Ongoing implementation as part of each department's work planning.

POLICY LU 2.1 Economic Development. Attract new businesses and encourage the retention and expansion of existing businesses which enhance the City's economic base.

Ongoing as City staff works with local organizations such as Chamber of Commerce and Downtown San Mateo Association, to support businesses.

POLICY LU 2.2 High City Revenue Generators. Retain existing businesses and attract new businesses which are high City revenue generators. Ongoing as City staff works with local organizations such as Chamber of Commerce and Downtown San Mateo Association, to support businesses.

POLICY LU 2.3 Local Employment. Encourage uses which provide opportunities for employment of all the City's residents, with emphasis placed on major employers that provide high value-added jobs.

Ongoing as City staff works with local organizations such as Chamber of Commerce and Downtown San Mateo Association, to support businesses.

POLICY LU 2.4 Downtown Plan. Establish downtown San Mateo as the social, cultural, and economic center of the City with a wide range of office, medical, residential, entertainment, and retail uses at high intensities and densities while encouraging pedestrian activity and bicycle connectivity to adjacent neighborhoods.

Ongoing implementation as part of Development Review process.

POLICY LU 2.5 Economic Development Plan. Update and maintain the Economic Development Strategy that encourages new private investment, increases employment opportunities, ensures a variety of commercial uses, develops a balance between high value-added employment and revenue generating business, and promotes San Mateo as an economically viable and competitive location.

City does not have an economic development plan. Instead, the City responds to current needs depending upon changing economic conditions.

POLICY LU 2.6 Development Review Process. Review development proposals and building permit applications in an efficient and timely manner while maintaining quality standards in accordance with City codes, policies, and regulations.

Ongoing implementation as part of Development Review process.

POLICY LU 2.7 Visitor Economy. Support the continued development of the City's visitor economy including lodging, entertainment, recreation, retail, and a lively local character.

City will collaborate as part of a regional strategy with other peninsula cities close to the airport and convention center, when the opportunity arises.

POLICY LU 2.8 Convenience Retail. Encourage and preserve convenience retail uses located adjacent to residential neighborhoods. Ongoing implementation as part of Development Review process.

POLICY LU 2.9 Support Service Uses. Encourage a variety of support service uses such as restaurants, day care facilities, and markets in locations that are appropriate to provide services to residential neighborhoods and commercial uses.

Ongoing implementation as part of Development Review process.

POLICY LU 2.10 Optimize Development Opportunities. Ensure that developments optimize the development potential of property in major commercial areas such as the Downtown Retail Core and along South El Camino Real.

Ongoing implementation as part of Development Review process.

GOAL 3a: Maintain downtown San Mateo as an economic, cultural, and social center of the community. Ongoing implementation as part of Development Review process and through processing of Special Event Permits for activities hosted by the City and other parties.

POLICY LU 3.1 Downtown Plan. As the social, cultural and economic center of the City, the downtown shall maintain a wide range of office, medical, residential, entertainment, and retail uses at high intensities and densities.

Ongoing implementation as part of Development Review process.

POLICY LU 3.2 Significant Historic Structures. Protect key landmarks, historic structures, and the historic character that exists in parts of downtown as defined in the Conservation/Open Space Element.

Ongoing implementation as part of Development Review process.

GOAL 3b: Promote residential land uses and the visual improvement of El Camino Real. Ongoing implementation as part of Development Review process.

POLICY LU 3.3 El Camino Real. Retain the general residential and landscaped character of El Camino Real north of Tilton Avenue. Promote the visual upgrading of El Camino Real south of Ninth Avenue through increased landscaping, coordination of public improvements, property maintenance, and sign control, through conformance with the El Camino Real Master Plan. Residential uses shall be encouraged to provide diversity to the existing commercial character and building setbacks from adjoining residences used to reduce perceived building mass from El Camino Real. Pedestrian activity and safety should be encouraged.

Ongoing implementation as part of Development Review process.

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GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
GOAL 3c: Promote transit-oriented development in designated areas adjacent to Caltrain stations. Ongoing implementation as part of Development Review process.

POLICY LU 3.4 Rail Corridor Transit-Oriented Development Plan (Corridor Plan). Implement the Corridor Plan to allow, encourage, and provide guidance for the creation of world class transit-oriented development (TOD) within a half-mile radius of the Hillsdale and Hayward Park Caltrain station areas, while maintaining and improving the quality of life for those who already live and work in the area.

Development within the plan area shall comply with the policies of the Plan.

Ongoing implementation as part of Development Review process.

POLICY LU 3.5 Transit-Oriented Development (TOD) Land Use Designation. Maintain TOD land use designations for areas in direct proximity to the Hillsdale and Hayward Park Caltrain stations.

Ongoing implementation as part of Development Review process.

POLICY LU 3.6 Hillsdale Station Area Plan. Implement the Hillsdale Station Area Plan to develop a relocated Hillsdale Caltrain Station around an intermodal transit center surrounded by mixed-use development and other transit-oriented forms of development that is connect to neighborhoods to the east and west as well as the 25th Avenue business district.

Ongoing implementation as part of Development Review process.

GOAL 4a: Facilities. Seek to provide a safe and predictable supply of water, and provide storm drainage, sewer and flood control facilities adequate to serve existing needs, the projected population and employment growth and to reduce the associated life safety and health risks to acceptable levels.

City does not provide water, instead the City continues to collaborate with local water providers to supply water. To address storm drainage, sewer and flood control facilities, the Public Works Department continues work on the Wastewater Treatment Plant upgrade, new Underground Flow Equalization System, and pump station upgrade projects in multiple areas of city.

GOAL 4b: Public Facilities. Support the provision and maintenance of adequate sites and public facilities owned and/or operated by the City or other government agencies to meet existing needs and the projected 2030 population and employment including, schools, post office facilities, recreation facilities, libraries, art centers, museums, and offices. Encourage joint use and public-private partnerships where feasible.

In 2023, Public Works Department continued to manage construction of various public projects including the Waste Water Treatment Plant, which is anticipated for completion in 2024. City continues to support local school district's school enrollment projection studies.

GOAL 4c: Health and Safety. Protect the community's health, safety, and welfare by maintaining adequate fire and life safety protection, providing a safe environment with a minimum of crime, reducing unreasonable risk to life and property caused by flooding, earthquakes or other natural disasters, and managing the use, storage, transport and disposal of hazardous materials.

As a separate agency, the San Mateo Consolidated Fire Department is responsible for ensuring adequate fire services. Police Department continues to service the community in reducing risk to life and property. In 2023, Public Works Department completed the North Shoreview Flood Improvement Project and reopened the Bay Trail. Evaluation of hazardous material impacts is ongoing as part of the Development Review process.

POLICY LU 4.1 Fiscal Evaluation and Priorities. All policies herein which seek to: 1) establish levels of service provided by the City or 2) address the construction of City buildings, shall be guiding principles only and shall be subject to the governing fiscal policies and priorities established by the City Council in the budget.
1 & 2 are ongoing as part of the City's annual budget review process.

POLICY LU 4.2 Developer's Contribution Policy. Require new development to pay on an equitable basis for new or expanded public improvements needed to support the new or changed land use or development.

Ongoing implementation as part of Development Review process. In 2021, the City completed a comprehensive Development Impact and In-Lieu Fee Study, which has been incorporated into the Comprehensive Fee Schedule that is adopted annually.

POLICY LU 4.3 Location of Critical Facilities. Encourage active, healthy lifestyles, by promoting pedestrian and bicycle connectivity between civic facilities. Avoid locating critical facilities, such as hospitals, schools, fire, police, emergency service facilities and utilities in areas subject to slope failure, flooding and other hazards as identified in the Safety Element, where feasible.

City encourages active healthy lifestyles through education and events such as Public Work Department's Bike Rodeo. Ongoing implement and, where it's feasible, the City evaluate sites to avoid locating critical facilities in areas subject to hazards identified in the Safety Element.

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GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
POLICY LU 4.4 Water Supply. Seek to ensure a safe and predictable water system for existing and future development by taking the following actions: 1) As a high priority, work with California Water Company and Estero Municipal Improvement District and adjacent jurisdictions to develop supplemental water sources and conservation efforts. 2) Strongly encourage water conservation by implementing pro-active water conservation methods, including requiring all new development to install low volume flush toilets, low-flow shower heads, and utilize drip irrigation while promoting high-efficiency washing machines and establishing an education program to improve water conservation practices. 3) Investigate the feasibility of developing capacity to use recycled wastewater, stormwater runoff, graywater and ground water that will enable reuse of water for irrigation purposes, freeing comparable potable water supplies for other uses.
1 & 2) Ongoing as the City continues to collaborate with local water districts to develop supplemental water sources, educate/provide resources on water conservation.
3) Funding for the feasibility study is postponed. The City is prioritizing funding to complete construction of the Waste Water Treatment Plant upgrade, new Underground Flow Equalization System and several pump station upgrade projects.

POLICY LU 4.4.5 Stormwater Treatment. Continue to implement the San Mateo Countywide Stormwater Pollution Prevention Program to ensure compliance with the National Pollutant Discharge Elimination System (NPDES) permit. 1) Prevent water pollution from point and non-point sources. 2) Minimize stormwater runoff and pollution by encouraging low-impact design features, such as pervious parking surfaces, bioswales and filter strips in new development. 3) Encourage the use of drought-tolerant and native vegetation in landscaping.
1, 2 & 3) Ongoing implementation as part of Development Review process.

POLICY LU 4.5 Wastewater Treatment Plant Expansion. Provide adequate waste water treatment for the projected 2030 service area population, employment and development. Require that any future expansion of the Waste Water Treatment Plant (WWTP) be designed to be compatible with the adjacent parks, school, and low-density residential areas by screening views of the WWTP with extensive and tall landscaping and reducing the height of all new structures to the maximum practicably feasible. Any future expansion of the WWTP shall take into account the possible rise in sea level.

The Public Works Department continues to manage the construction of the Wastewater Treatment Plant upgrade, new Underground Flow Equalization System, and several pump station upgrade project in 2023.

POLICY LU 4.6 Inter-Agency Coordination. Coordinate future expansion or modification of the Wastewater Treatment Plant with the other users of the plant including the Estero Municipal Improvement District (Foster City), the Crystal Springs County Sanitation District, Hillsborough and Belmont.

Ongoing coordination work by the Public Works Department.

POLICY 4.7 Sewer System. Provide a sewer system which safely and efficiently conveys sewage to the waste water treatment plant.

Implement the Sewer System Management Plan (SSMP) to ensure proper maintenance, operations and management all parts of the wastewater collection system. 1) Comprehensive Sewer System Study. As a high priority maintain the comprehensive sewer system study to assess the efficiency and integrity of the sewer lines and facilities and develop a Capital Improvement Program to make any necessary improvements. 2) Sewer Requirements for New Development. Require new major multi-family and commercial developments to evaluate the main sewer lines in the project vicinity which will be utilized by the new development and make any improvements necessary to convey the additional sewage flows. 1) Ongoing work by Public Works Department to implement the SSMP and develop CIP to make necessary improvements.
2) Ongoing implementation as part of Development Review process.

POLICY LU 4.8 Library Resources and Services. Continue to maintain a comprehensive collection of resources and services to help the community discover, enjoy, connect and learn in an ever-changing world while offering quality library services and programs to a diverse community promoting literacy and ongoing learning.

As a land use, the City's main library and two branch libraries continue to serve the San Mateo community.

POLICY LU 4.9 Cultural and Entertainment Facilities. Encourage the establishment of cultural and entertainment facilities in the downtown core and allow these types of uses to fulfill retail frontage requirements.

Ongoing implementation as part of Development Review process.

POLICY LU 4.10 Police Station. Provide Police Station facilities to meet the facility requirements through 2030. Ongoing, as City's annual budget review process includes consideration for Police Station facilities as necessary.

POLICY LU 4.11 Fire Stations. Maintain a high level of service by modernizing Fire Stations. Provide new stations and improvements to existing stations and training facilities to meet equipment, staffing, and training requirements, as well as Essential Services Building Requirements.

While the San Mateo Consolidated Fire Department (SMCFD) is responsible for fire service operations, each local partner agency is responsible for physical assets within its city including upgrades and adding new fire stations. The City and SMCFD will continue to collaborate on citywide service needs.

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GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
POLICY LU 4.12 Corporation Yard. Provide for such corporation yard functions as new vehicle repair facilities, administrative office space, and other facilities needed through 2030. Consider co-locating public works facilities and operations where feasible.

Ongoing work by Public Works Department.

POLICY 4.13 City Hall. Provide City Hall office space and consider construction of a Downtown facility to meet City staffing needs through the year 2030.

Not applicable in 2023.

POLICY LU 4.14 School Assistance. As a high priority, support quality public education. City supports school projects such as Borel Middle School gymnasium project. City supports school enrollment projection studies by providing information from Housing Element Annual Report and "What's Happening" project webpages.

POLICY LU 4.15 School Site Reuse or Redevelopment. Ensure that reuse or redevelopment of surplus public school sites is compatible with surrounding land uses. At the time any school sites are declared surplus, establish residential densities consistent with surrounding densities. Give first priority and consideration to community recreation needs for reuse of school sites in accordance with the priorities in the Open Space\Conservation Element. Where it is in the community's interests to retain public recreation facilities, consider allowing density transfers from the portion of the site retained in public recreation use, as a means of reducing the cost of retaining the recreation facilities and achieving the maximum amount of housing.

Not applicable in 2023 as there were no available school sites.

POLICY LU 4.16 Service Improvement and Expansion. Seek to ensure adequate gas, electric and communication systems to serve existing and future needs while minimizing impacts on existing and future residents by taking the following actions: 1) Underground electrical and communication transmission and distribution lines in residential and commercial areas as funds permit. 2) Require all new developments to underground lines and provide underground connections when feasible. 3) Balance the need for cellular coverage with the desire to minimize visual impacts of cellular facilities, antennas, and equipment shelters. 1) No funding was available for this in 2023.
2) Ongoing implementation as part of Development Review process. 3) Ongoing as part of the wireless application review process by Public Work Department and through the Development Review process.

POLICY LU 4.17 Library Service. Maintain a materials budget, staffing, and service hours for the City's library system that are adequate to meet the community needs, provide current and adequate materials, and meet the continuing changes in information technology.

As a land use, the City's Library continues to serve the San Mateo community. Adjustments in library services were made to address safety precautions due to the pandemic.

POLICY LU 4.18 San Mateo County Hospital. Encourage the County to maintain County Hospital services in the City to provide access to medical care for all the City's residents.

No specific actions needed in 2023.

POLICY LU 4.19 Mills Health Center. Support the Mills Health Center remaining in San Mateo and encourage the continued provision and expansion of high-quality medical care services.

No specific actions needed in 2023.

POLICY LU 4.20 Medical Services. Maintain the highest level of medical emergency readiness and response capabilities possible by encouraging inter-agency medical drills and exercises where hospital personnel work with emergency responders in the field and with Emergency Operation Centers and by encouraging citizens to become trained in basic medical triage and first aid through the Community Emergency Response Team (CERT).

No specific actions needed in 2023.

POLICY LU 4.21 Child Care. Support the provision of child care programs and facilities to meet current needs and the needs through 2030 by taking the following actions: 1) Encourage public and private agencies and employers to provide child care services and facilities.

Retain existing centers and support programs at school sites and other quasi-institutional facilities, because of their suitability for such uses and convenient locations in residential neighborhoods. 2) Encourage the location of child care facilities which are consistent with State standards. Continue to allow child care centers in residential neighborhoods where they meet City standards and encourage them at work centers.
1) Ongoing implementation as part of Development Review process. 2) City maintains a Child Care Resources webpage with information on setting up new child care spaces, resources, and funding opportunities. City also continues to collect a Child Care Development Fee which is used to provide financial assistance in development of new child care spaces.

228 of 1487

City of San Mateo General Plan Annual Progress Report 2023 Exhibit A – Land Use Implementation Summary Page 8

GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
POLICY LU 4.22 Child Care and New Construction. Encourage inclusion of space for child care in new residential and non-residential developments by taking the following actions: 1) Provide incentives for inclusion of space for a child care center in a new development. 2) Promote child care to developers as an amenity favored by the City. 3) Include child care in appropriate redevelopment projects and for redevelopment funds. 4) Continue to implement the developer impact fee for funding child care facilities. 1, 2) City maintains Child Care Resources webpage with resources to set up new child care spaces and funding opportunities. Ongoing implementation as part of Development Review process.
3) In 2011, the state abolished all redevelopment agencies in California thereby removing redevelopment funds as a financial resource for child care facilities. This policy will be removed when the General Plan is updated.
4) City collects a Child Care Development Fee, which is used to provide financial assistance to support new child care facilities.

POLICY LU 4.23 Social Services. Support the provision of the City's fair share of social services. Avoid the concentration of social services in any one neighborhood and seek dispersal throughout the City. Encourage other cities to provide their fair share of social service facilities.

Ongoing as City's Housing Division continues to work with social service providers and provide support through financial assistance.

POLICY LU 4.24 Fire Inspections. Maintain fire inspection staffing levels to meet existing needs and the projected 2030 population, employment and development, and inspections mandated by other governmental agencies.

Ongoing implementation. San Mateo Consolidated Fire Department (SMCFD) serves cities of San Mateo, Belmont and Foster City. The City and SMCFD work collaboratively to address changing service needs. SMCFD conducts inspections related to developments and implements governmental mandates.

POLICY LU 4.25 Maintenance and Replacement. Continue fire apparatus replacement and maintenance programs to provide a high state of readiness.

Ongoing as part of City's annual budget review process.

POLICY LU 4.26 Public Education. Provide public education programs targeted to segments of the community posing the greatest concern for fire and life safety.

City continues to collaborate with San Mateo Consolidated Fire Department on the CERT program to provide public education regarding fire and life safety. City continues to support youth prevention/early intervention education, traffic safety awareness programs, and neighborhood watch; and continues to educate community on public safety through Community Police Academy or similar overview courses.

POLICY LU 4.27 Automatic and Mutual Aid Agreements. Maintain automatic and mutual aid agreements with all jurisdictions within San Mateo County.

City Council reviews and approves these Agreements. Staff in the Police Department and San Mateo Consolidated Fire Department (a separate agency) implement the Agreement by providing automatic and mutual aid to other agencies.

POLICY LU 4.28 Peakload Water Supply. Seek to ensure that the California Water Service Company and the Estero Municipal Improvement District provide and maintain a water supply and distribution system which provides an adequate static pressure to deliver a minimum fire hydrant flow of 2,500 gallons per minute to all areas of the City, except where a lesser flow is acceptable as determined by the Fire Chief. Ensure that new development does not demand a fire flow in excess of that available.

The City does not provide water; however, the Public Works Department continues to collaborate with local water providers on water supply and distribution systems. City works with local water company/district on projects and reviews them as part of the Development Review process.

POLICY LU 4.29 Effective Police Services. Maintain facilities, equipment, and personnel to provide an effective police force to serve existing and future population and employment as identified in the Land Use Element.

Ongoing implementation through assessment of facilities, technology and personnel needs; and changes to response based on social change and legislated requirements. Police and Public Works Departments work collaboratively on any necessary police station facility changes.

POLICY LU 4.30 Defensible Design. Require all developments including parks and public places to incorporate physical security, personal safety, and traffic measures to provide a safe environment through application of crime prevention through design principles consistent with the City’s Security Ordinance.

Ongoing implementation as part of Development Review process.

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City of San Mateo General Plan Annual Progress Report 2023 Exhibit A – Land Use Implementation Summary Page 9

GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
POLICY LU 4.31 Solid Waste Disposal. Continue to support programs to reduce solid waste materials in landfill areas in accordance with State requirements.

Ongoing in accordance with State requirements.

POLICY LU 4.32 Recycling and Composting. Support programs to recycle solid waste in compliance with State requirements. Require provisions for onsite recycling for all new development and expand composting of green waste and food scraps, as directed by the City’s Climate Action Plan which is an appendix of the General Plan.

Ongoing in accordance with State requirements.

POLICY LU 4.33 Waste Management. Manage toxic and hazardous wastes by following the goals and policies contained in the Safety Element. Ongoing in accordance with State requirements.

GOAL 5: Promote cooperative interaction with other public agencies regarding regional issues. Ongoing as the City continues to promote and collaborate with other agencies regarding regional issues such as transportation, housing, etc.

POLICY LU 5.1 Inter-Agency Cooperation. Promote and participate in cooperative planning with other public agencies and adjacent jurisdictions, especially regarding regional issues such as water supply, traffic congestion, rail transportation, air pollution, waste management, fire services, emergency medical services and climate change.

Ongoing as the City continues to collaborate in regional working groups regarding regional issues. Examples of regional working groups include but are not limited to 21 Elements, Cities/County Associate of Governments (C/CAG) of San Mateo County and OneShoreline.

POLICY LU 5.2 Public Agency Developments. Require developments constructed by other governmental agencies to conform to the City's General Plan, Zoning Ordinance, and other development regulations to the extent legally possible.

When projects by other public agencies are determined to be subject to the City's local land use authority, the City implements this policy through the Development Review process.

GOAL 6: Ensure that the City's General Plan is consistent with State Law, legally adequate, and up to date. Given the City's financial resources, the General Plan is updated approximately every 10 years. At the time of adoption, General Plan 2030 was consistent with applicable state laws. The City is currently updating its Housing Element and General Plan to comply with applicable state laws, with adoption hearings planned for Spring 2024.

POLICY LU 6.1 Periodic General Plan Review. Report to the City Council yearly on the status of the implementation of the General Plan and on the need to update the plan.

Community Development Department will provide annual updates to City Council and submit the Progress Report to the state.

POLICY LU 6.2 General Plan Amendments. Amendments to the General Plan shall be considered a maximum of three times per year to ensure that Elements remain consistent and that the overall effect of Plan amendments is considered.

No General Plan Amendments were submitted or approved in 2023.

GOAL 6A: Ensure that all development in the City is consistent with and implements the General Plan. Ongoing implementation as part of Development Review process.

POLICY LU 6A.1 Specific Plan, Zoning, Permit and Subdivision Review. The City shall not approve any specific plan, rezoning, permit, subdivision, variance, or other land use permit which is not consistent with and does not implement the General Plan. Specific Plan and zoning ordinances were amended so as to conform to the General Plan by the end of 1992.

Ongoing implementation as part of Development Review process and planning work. No applicable work in 2023.

POLICY LU 6A2 Building Height and Building Intensity Maps/Plans. Maintain Building Height and Building Intensity maps/plans which delineate development intensity in the form of building heights and FARs in a manner which implements the height, intensity, density and design standards in the General Plan, consistent with the Building Heights and Intensities maps/plans as amended by initiative in November 1991 and November 2004., General Plan standards for building heights and intensities are specifically set forth in the Building Height Plan and the Building Intensity Plan that were formerly included in the General Plan, and designated respectively as figure LU-4 in the table of contents (marked as figure LU-5), and figure LU-5 in the table of contents (marked as figure LU-6).

Ongoing implementation as part of Development Review process.

GOAL 7: Permit the annexation to the City of adjacent unincorporated lands, when in the City's interest. There was no annexation in 2023.

POLICY LU 7.1 Annexation. Annex urbanized areas of the unincorporated land adjacent to the City limits in those areas where landowners petition the City to be annexed subject to the following conditions: 1) The annexation is comprehensive, rather than piecemeal; and 2) Landowners will pay the full cost of City services, will assume a proportionate share of existing City debts and will contribute, either in cash or in kind, to the existing capital improvements of the City which will benefit the area to be annexed.

There was no annexation in 2023.

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City of San Mateo General Plan Annual Progress Report 2023 Exhibit A – Land Use Implementation Summary Page 10

GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
POLICY LU 7.2 New Development within the Sphere of Influence. Seek to require new developments and related infrastructure to be consistent with and to be designed to the City's General Plan goals and policies, zoning code requirements, development standards and the City's municipal code
No applicable projects in 2023.

GOAL 8a: Reduce greenhouse gas emissions each year consistent with the Climate Action Plan. Sustainability staff updates the Council annually of progress made on CAP initiatives. All CAP Progress Updates are posted online at www.cityofsanmateo.org/3962
GOAL 8b: Recognize potential climate change consequences such as increased sea level rise, changing weather events, less snow melt in the Sierras - therefore less drinking water availability, hotter temperatures, changing air quality and more heat related health issues.

Ongoing work among multiple City departments; and collaboration with regional agencies and utilities to address sea level rise, drought, and air quality.

POLICY LU 8.1 Carbon Footprint. The City shall prepare an updated greenhouse gas emissions inventory consistent with the Climate Action Plan. Sustainability staff annually updates Council on progress of CAP initiatives, see link to report in Policy 8a.

POLICY LU 8.3 Greenhouse Gas (GHG) Emission Reductions. Monitor and report progress toward the City’s GHG emissions reduction target on an annual basis and regularly review emission reduction measures and new opportunities consistent with guidance of the City’s Climate Action Plan.

Sustainability staff annually updates Council on progress of CAP initiatives, see link to report in Policy 8a.

GOAL 8c: Ensure that all improvements to existing structures are developed or remodeled in a sustainable manner. Consistent with the 2020 CAP, the City adopted reach codes in 2022 requiring that all NEW construction buildings be all-electric.

Implementation is ongoing through the Development Review process.

GOAL 8d: Increase new annual installations of solar or renewable energy systems consistent with the Climate Action Plan. Sustainability staff annually updates Council on progress of CAP initiatives, see link to report in Policy 8a.

POLICY LU 8.2 Effects of Climate Change. Incorporate consideration of the effects of climate change in development of General Plan updates, disaster planning, City projects, infrastructure planning, future policies and long-term strategies. Explore voluntary adjustments of base flood elevation.

Ongoing implementation as part of Development Review processing of City projects and in planning work such as General Plan update and infrastructure planning.

POLICY LU 8.4 Sustainable Development. Incorporate Sustainability into existing single family and multifamily housing. Require sustainable features and techniques to address energy and water efficiency in remodels of existing structures.

Ongoing implementation as part of Development Review process. In 2023, remodels of existing structures are now subject to reach code requirements to provide electric-readiness and heat pump cooling/heating and limits on new gas infrastructure for select residential dwelling types.

POLICY LU 8.5 Solar Energy. Promote or join local partnerships and opportunities that offer renewable energy options to the residents and/or help inform them of rebates and options while ensuring that the permit process is quick and inexpensive.

Ongoing work by Sustainability staff in continuing to educate/inform users of renewable energy options and available rebates.

POLICY LU 8.6 Waste Reduction. Reduce waste sent to landfills by San Mateo’s residents, businesses and visitors by a minimum of 40% from 2017 levels by 2030 by mandating recycling, setting aggressive waste reduction goals for all development, implementing composting programs, and increasing costs for residential and commercial waste collection then using increased waste collection revenue to provide waste reduction incentives. Supportive actions for waste reduction are detailed in the Climate Action Plan.

Public Works Department continues to adhere to latest codes and requirements regarding waste reduction, consistent with 2020 Climate Action Plan.

POLICY LU 8.7 Water Reduction Strategies. Establish a partnership with California Water Service (CWS), Bay Area Water Supply Conservation Agency and other mid peninsula cities to promote the water reduction strategies that are offered and to create an outreach program that will help inform residence and businesses of increase costs and the need for conservation efforts.

Ongoing collaboration with other agencies, as applicable, to educate residents and businesses of increase costs and the need for conservation efforts.

POLICY LU 8.8 Water Rates. Actively support a strategy to decouple water utility revenues from water consumption and any other regulatory changes that will offer incentives to CWS to actively pursue conservation while working with CWS to implement progressive water rates.

Where appropriate, City supports CWS in pursuing water conservation and implementation of progressive water rates.

231 of 1487

City of San Mateo General Plan Annual Progress Report 2023 Exhibit A – Land Use Implementation Summary Page 11

GOAL, POLICY
OR ACTION NO.

GOAL, POLICY OR ACTION TEXT IMPLEMENTATION STATUS
POLICY LU 8.9 Air Quality Construction Impacts. The City shall mitigate air quality impacts generated during construction activities by requiring the following measures: 1) Use of appropriate dust control measures, based on project size and latest Bay Area Air Quality Management District (BAAQMD) guidance, shall be applied to all construction activities within San Mateo. 2) Applicants seeking demolition permits shall demonstrate compliance with applicable BAAQMD requirements involving lead paint and asbestos containing materials (ACM’s) designed to mitigate exposure to lead paint and asbestos. 3) Utilization of construction emission control measures recommended by BAAQMD as appropriate for the specifics of the project (e.g., length of time of construction and distance from sensitive receptors). This may include the utilization of low emission construction equipment, restrictions on the length of time of use of certain heavy-duty construction equipment, and utilization of methods to reduce emissions from construction equipment (alternative fuels, particulate matter traps and diesel particulate filters). 1, 2, & 3: Ongoing implementation as part of Development Review process.

POLICY LU 8.10 Odors. When proposed development generating odors is proposed near residences or sensitive receptors, either adequate buffer distances shall be provided (based on recommendations and requirements of the California Air Resources Control Board and BAAQMD), or filters or other equipment/solutions shall be provided to reduce the potential exposure to acceptable levels.

Potential mitigation associated with this policy requirement will be coordinated with any required permit conditions from BAAQMD. When new residential or other sensitive receptors are proposed near existing sources of odors, either adequate buffer distances shall be provided (based on recommendations and requirements of the California Air Resources Control Board and BAAQMD), or filters or other equipment/solutions shall be provided to reduce the potential exposure to acceptable levels.

Ongoing implementation as part of Development Review process.

POLICY LU 8.11 Toxic Air Contaminants. The City shall require that when new development that would be a source of toxic air contaminants (TAC’s) is proposed near residences or sensitive receptors, either adequate buffer distances shall be provided (based on recommendations and requirements of the California Air Resources Control Board and BAAQMD), or filters or other equipment/solutions shall be provided to reduce the potential exposure to acceptable levels.

When new residential or other sensitive receptors are proposed near existing sources of TAC’s, either adequate buffer distances shall be provided (based on recommendations and requirements of the California Air Resources Control Board and BAAQMD), or filters or other equipment/solutions shall be provided to the source to reduce the potential exposure to acceptable levels.

Ongoing implementation as part of Development Review process.

POLICY LU 8.12 Engaging the Public. Create a multi-phased information campaign to educate residents and businesses on the Climate Action Plan and to spark behavioral changes in individual energy and water consumption, transportation mode choices, and recycling.

Ongoing work by Sustainability staff in continuing to educate residents and businesses. Existing outreach efforts include an induction cooktop loan program and reusable cup program at participating Downtown cafes.

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Jurisidiction Name
Reporting Calendar Year
First Name
Last Name
Title Click here to download APR Instructions
Email
Phone
Street Address
City
Zipcode
Click here to add rows to a table. If you add too many rows, you may select a cell in the row you wish to remove and type ctrl + d.
330 W 20th Ave
San Mateo
94403
Linda
Ly
Associate Planner
[email protected]
6505227220
Mailing Address
Please Start Here
General Information
2023
San Mateo
Contact Information
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You will be prompted to pick an old workbook to import from. Project and program data will be copied exactly how it was entered in last year's form and must be updated. If a project is no longer has any reportable activity, you may delete the project by selecting a cell in the row and typing ctrl + d.

Annual Progress Report January 2020

233 of 1487

Optional: This runs a macro which checks to ensure all required fields are filled out. The macro will create two files saved in the same directory this APR file is saved in. One file will be a copy of the APR with highlighted cells which require information.

The other file will be list of the problematic cells, along with a description of the nature of the error.

Optional: Save before running. This copies data on Table A2, and creates another workbook with the table split across 4 tabs, each of which can fit onto a single page for easier printing. Running this macro will remove the comments on the column headers, which contain the instructions. Do not save the APR file after running in order to preserve comments once it is reopened.

Optional: This macro identifies dates entered that occurred outside of the reporting year. RHNA credit is only given for building permits issued during the reporting year.

Link to the online system: https://apr.hcd.ca.gov/APR/login.do Submittal Instructions
Please save your file as Jurisdictionname2022 (no spaces). Example: the city of San Luis Obispo would save their file as SanLuisObispo2022 Housing Element Annual Progress Reports (APRs) forms and tables must be submitted to HCD and the Governor's Office of Planning and Research (OPR) on or before April 1 of each year for the prior calendar year; submit separate reports directly to both HCD and OPR pursuant to Government Code section 65400. There are two options for submitting APRs:

1. Online Annual Progress Reporting System - Please see the link to the online system to the left. This allows you to upload the completed APR form into directly into HCD’s database limiting the risk of errors. If you would like to use the online system, email [email protected]
and HCD will send you the login information for your
jurisdiction. Please note: Using the online system only provides the information to HCD. The APR must still be submitted to OPR. Their email address is [email protected].

2. Email - If you prefer to submit via email, you can complete the excel Annual Progress Report forms and submit to HCD at [email protected] and to OPR at
[email protected]. Please send the Excel workbook, not a scanned or PDF copy of the tables.

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Jurisdiction San Mateo
Reporting Year 2023
Housing Element Planning Period 6th Cycle
Current Year
Deed Restricted 0
Non-Deed
Restricted 25
Deed Restricted 0
Non-Deed
Restricted 24
Deed Restricted 0
Non-Deed
Restricted 25
24 98
Units by Structure Type Entitled Permitted Completed
Single-family Attached 0 0 0
Single-family Detached 1 11 3
2 to 4 units per structure 0 4 0
5+ units per structure 0 0 0
Accessory Dwelling Unit 4 83 64
Mobile/Manufactured Home 0 0 55
Total 5 98 122
Infill Housing Developments and Infill Units Permitted # of Projects Units 93 96
2 2
11 184
64 0
0 0
Income Rental Ownership Total
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0
Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 0 0
SB 9 (2021) - Residential Lot Split 2 2
AB 2011 (2022) 0 0
SB 6 (2022) 0 0
SB 35 (2017) 0 0
Ministerial and Discretionary Applications # of Applications Units Ministerial 0 0
Discretionary 11 184
Density Bonus Applications and Units Permitted
Number of Applications Submitted Requesting a Density Bonus 3 Number of Units in Applications Submitted Requesting a Density Bonus 126 Number of Projects Permitted with a Density Bonus 2
Number of Units in Projects Permitted with a Density Bonus 2 Housing Element Programs Implemented and Sites Rezoned Count 53 0
Cells in grey contain auto-calculation formulas
Programs Implemented
Sites Rezoned to Accommodate the RHNA
(Jan. 1 - Dec. 31)
01/31/2023 - 01/31/2031
Units Constructed - SB 35 Streamlining Permits
Number of SB 35 Streamlining Applications Approved
Very Low
Low
Moderate
Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Total Units
Housing Applications Summary
Use of SB 35 Streamlining Provisions - Applications
Note: Units serving extremely low-income households are included in the very low-income permitted units totals Number of SB 35 Streamlining Applications
Above Moderate
Indicated as Infill
Not Indicated as Infill
Building Permits Issued by Affordability Summary
Income Level

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Jurisdiction San Mateo ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 01/31/2023 - 01/31/2031
Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining Application
Status Project Type Notes
2 3 4 6 7 8 9 11 12 13
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted+
(see
instructions)
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low-Income
Deed
Restricted
Low-Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income
Non Deed
Restricted
Above
Moderate-
Income
Total PROPOSED
Units by Project
Total

APPROVED
Units by project
Total

DISAPPROVED
Units by Project
Please select
streamlining
provision/s the
application was
submitted pursuant
to.

Did the housing
development
application seek
incentives or
concessions
pursuant to
Government Code
section 65915?
Were incentives
or concessions
reqested
pursuant to
Government
Code section
65915 approved?
Please indicate
the status of the
application.

Is the project
considered a
ministerial
project or
discretionary
project?
Notes+
Summary Row: Start Data Entry Below 17 2 1 2 0 2 160 184 64 0 NA 034-181-160
435 E. 3rd Ave. 435 E. 3rd Ave.,
SPAR + SDPA PA-2021-081
5+ R
2/3/2023
0 0 1 0 0 0 4
5 5 0 NONE Yes Yes Approved Discretionary New mixed-use building with 5 residential units and 33,876 square feet of office uses with no on-site
parking. (Net new 5 units)
NA 040-112-180
3601 Martin Dr. 3601 Martin Dr.,
SFDDR PA-2022-075
ADU R
2/14/2023
0 1 0 0 0 0 1 2 2 0 NONE No N/A Approved Discretionary Demolition of an existing single-family residence and construction of a new single-family residence
with an attached ADU and an attached two-car
garage. ADU is ministerial. Work on SFD triggered
discretionary review; applicant opted to include ADU
in this application. (Net new 1 unit)
NA 034-295-310
150 15th Ave. 150 15th Ave.,
ADUDR PA-2022-084
ADU R
2/17/2023
0 1 0 0 0 0 0 1 1 0 NONE No N/A Approved Discretionary Discretionary review to convert an existing accessory structure into an ADU and to allow
additions with a zero-setback along the rear
property line where 4-feet is required. (Net new 1
unit)
NA 032-033-030
635 Costa Rica
Ave.
635 Costa Rica
Ave., SUP + SFDDR PA-2022-055
ADU R
3/24/2023
0 0 0 1 0 0 1 2 2 0 NONE No N/A Approved Discretionary Demolition of an existing single family residence and construction of a new two-story single family
residence with a detached ADU. ADU is ministerial.

Work on SFD triggered discretionary review;
applicant opted to include ADU in this application.
(Net new 1 unit)
NA 034-294-120
125 15th Ave. 125 15th Ave., SUP
+ SFDDR PA-2021-049
SFD R
3/31/2023
0 0 0 1 0 0 1 2 2 0 NONE No N/A Approved Discretionary Demolition of an existing single family residence and construction of a new two-story single family
residence and conversion of an existing detached
garage into an ADU with an attached one-car
garage. ADU is ministerial. Work on SFD triggered
discretionary review; applicant opted to include ADU
in this application. (Net new 1 unit)
NA 032-333-120
2 S. Delaware
St.
2 S. Delaware St.,
SPAR PA-2022-079
ADU R
4/6/2023
0 0 0 0 0 1 0 1 1 0 NONE No N/A Approved Discretionary Exterior alterations to an existing residence qualifying as an Individually Eligible historical
resource. Project includes legalization and
expansion of existing basement to a JADU. JADU is
ministerial. Work on SFD triggered discretionary
review, applicant opted to include JADU in this
application. (Net new 1 unit)
NA 032-133-310
864 N.

Claremont St.
864 N. Claremont
St., SUP + SFDDR +
SPAR
PA-2022-090
ADU R
5/23/2023
0 0 0 0 0 1 0 1 1 0 NONE No N/A Approved Discretionary
Substantial removal (not demolition) and
reconstruction of a single-family residence, including
a ground floor addition with a legal nonconforming
side yard setback. The project also includes an
attached ADU. ADU is ministerial. Work on SFD
triggered discretionary review, applicant opted to
include ADU in this application. (Net new 1 unit)
NA 039-372-080
2659 Garfield
St.
2659 Garfield St.,
SFDDR PA-2023-014
SFD O
7/28/2023
0 0 0 0 0 0 1 1 1 0 NONE Yes Yes Approved Discretionary Construction of a new two-story single family residence and convesion of the existing residence
into an ADU. ADU is ministerial. Work of a new SFD
triggered discretionary review; applicant opted to
include ADU conversion in application. (Net new 1
unit)
Two parcels
proposed to be
merged; new
APN not yet
available.
034-194-030
and
034-194-140
616 S. B St.
616 S. B St.,
Nazareth Vista
SPAR+SDPA
PA-2022-037
5+ R
11/17/2023
5 0 0 0 0 0 43 48 48 0 NONE No N/A Approved Discretionary Demolition of existing commercial structures to construct a new five-story mixed-use building
consisting of 48 residential units and approximately
7,000 sq. ft. of commercial uses on the ground floor.

Project includes a Tentative Parcel Map to merge
two lots. New APNs not available at this time. (Net
new 48 units)
NA 034-366-100
1238 Quince St. 1238 Quince St.,
SUP + SFDDR PA-2023-037
ADU R
11/17/2023
0 0 0 0 0 0 1 1 1 0 NONE No N/A Approved Discretionary Substantial removal (not demolition) of a single- family residence with a second-story addition. The
project also includes conversion of the existing
detached garage into an ADU. ADU is ministerial.

Work on SFD triggered discretionary review;
applicant opted to include ADU in this application.
(Net new 1 unit)
NA 033-281-130
477 9th Ave. 477 9th Ave., SUP +
SPAR + SDPA PA-2022-047
5+ R
11/17/2023
12 0 0 0 0 0 108 120 0 0 NONE Yes Yes Pending Discretionary Demolition of an existing office to construct a new five-story mixed-use building consisting of 120
residential units and approximately 29,207 sq. ft. of
office uses. (Net new 120 units)
Project approval is pending due to an appeal that
was filed by the public on 12/21/23, regarding the
project's proposed tree removal.

The project was approved on 2/20/24 following the
City Council's denial of the appeal and upholding
the previous approval.

Table A
Cells in grey contain auto-calculation formulas
51 Project Identifier Unit Types Proposed Units - Affordability by Household Incomes Density Bonus Law Applications
10 Housing Development Applications Submitted

236 of 1487

San Mateo ANNUAL ELEMENT PROGRESS REPORT
2023 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas 6th Cycle 01/31/2023 - 01/31/2031
Table A2
Streamlining Infill
Housing without Financial
Assistance or Deed
Restrictions
Term of Affordability
or Deed Restriction Notes
2 3 5 6 8 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Current APN Street Address Project Name + Local Jurisdiction Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Entitlement
Date Approved # of Units issued
Entitlements
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Building Permits
Date Issued
# of Units Issued
Building Permits
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income
Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Certificates of
Occupancy or other
forms of readiness
(see instructions)
Date Issued
# of Units
issued
Certificates of
Occupancy or
other forms of
readiness
How many of
the units were
Extremely Low
Income?
Please select the
streamlining
provision the
project was
APPROVED pursuant to. (may
select multiple)
Infill Units?
Y/N+
Assistance Programs
for Each Development
(may select multiple -
see instructions)
Deed Restriction
Type
(may select
multiple - see
instructions)
For units affordable without
financial assistance or deed
restrictions, explain how the
locality determined the units
were affordable
(see instructions)
Term of Affordability or
Deed Restriction (years)
(if affordable in perpetuity
enter 1000)+
Number of
Demolished/Destroyed
Units
Demolished or
Destroyed Units
Demolished/De
stroyed Units
Owner or
Renter
Total Density Bonus Applied
to the Project (Percentage
Increase in Total Allowable
Units or Total Maximum
Allowable Residential Gross
Floor Area)
Number of Other
Incentives,
Concessions, Waivers,
or Other Modifications
Given to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the incentives,
concessions,
waivers, and
modifications
(Excluding Parking
Waivers or Parking Modifications)
Did the project receive a
reduction or waiver of
parking standards? (Y/N)
Notes+
art Data Entry Below 0 1 0 0 0 3 1 5 0 25 0 24 0 25 24 98 3 20 5 19 0 19 56 122 0 10 33364120 1624 DALE AVE Addition of attached A BD-2022-287552 ADU R 0 1 4/6/2023 1 1 8/18/2023 1 0 NONE Y ADU Formula ADU approved under mi 40024250 2211 SPRINGFIELD WAY Unit: B Addition of attached A BD-2023-288778 ADU R 0 1 4/24/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33361010 901 S NORFOLK ST Unit: B New detached ADU BD-2022-286681 ADU R 0 1 1/17/2023 1 1 3/10/2023 1 0 NONE Y ADU Formula ADU approved under mi 35232340 1906 PALM AVE Unit: B Convert portion of SF BD-2022-287402 ADU R 0 1 3/24/2023 1 1 5/5/2023 1 0 NONE Y ADU Formula ADU approved under mi 34352300 1403 YEW ST Unit: B Convert attached gar BD-2023-288339 ADU R 0 1 3/9/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33146190 34 N ELDORADO ST Unit: B Convert portion of SF BD-2023-288078 ADU R 0 1 2/24/2023 1 1 6/30/2023 1 0 NONE Y ADU Formula ADU approved under mi 35283230 1659 BORDEN ST Unit: B New detached ADU BD-2022-287191 ADU R 0 1 4/17/2023 1 1 6/28/2023 1 0 NONE Y ADU Formula ADU approved under mi 33331010 1200 DAKOTA AVE New attached ADU BD-2022-284604 ADU R 0 1 3/8/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 32033030 635 COSTA RICA AVE Unit: B New detached ADU
BD-2023-290759
PA-2022-055
ADU R 1 4/7/2023 1 1 8/28/2023 1 0 0 NONE Y ADU Formula ADU approved under mi
34383210 114 BARNESON AVE Unit: 1 New attached ADU (r BD-2022-283910 ADU R 0 1 3/2/2023 1 1 9/13/2023 1 0 NONE Y ADU Formula ADU approved under mi 32293040 226 MONTE DIABLO AVE Unit: B Legalize and convert BD-2023-290882 ADU R 0 1 10/5/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33271120 1659 SHOREVIEW AVE Unit: B New detached ADU BD-2023-289525 ADU R 0 1 10/6/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 32091020 537 HURLINGHAM AVE Unit: B Convert detached acc BD-2022-286821 ADU R 0 1 4/27/2023 1 1 9/11/2023 1 0 NONE Y ADU Formula ADU approved under mi 32012100 617 CRESCENT AVE Convert detached acc BD-2022-283362 ADU R 0 1 10/3/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 42083040 419 LA JOLLA AVE New attached ADU
BD-2022-287535
PA-2022-026
ADU R 0 1 8/1/2023 1 0 0 NONE Y ADU Formula
ADU approved under mi
39132300 438 24TH AVE Unit: B New attached ADU
BD-2023-287898
PA-2022-031 ADU R 0 1 2/3/2023 1 0 0 NONE Y ADU Formula ADU approved under mi
39142280 238 24TH AVE Unit: B New attached ADU
"P
BD-2023-289872
PA-2022-020
ADU R 0 1 7/28/2023 1 0 0 (2021) - Residential Lo Y ADU Formula SB 9 Lot Split
33123160 147 N HUMBOLDT ST Legalize and convert BD-2022-284361 ADU R 0 1 6/15/2023 1 1 10/24/2023 1 NONE Y ADU approved under mi 32333120 2 S DELAWARE ST Unit: B New JADU
BD-2023-291048
PA-2022-079
ADU R 1 4/20/2023 1 1 9/29/2023 1 0 0 NONE Y ADU Formula ADU approved under mi
35401320 1319 ADRIAN AVE Unit: B

SAN MATEO Convert attached gar BD-2023-289757 ADU R 0 1 7/6/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 39151160 136 23RD AVE Unit: C

SAN MATEO, C New detached ADU
BD-2023-288205
PA-2021-072 ADU R 0 1 2/22/2023 1 0 0 NONE Y ADU Formula ADU approved under mi
29312260 1038 N HUMBOLDT ST

SAN MATEO New detached ADU BD-2022-287126 ADU R 0 1 10/3/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 31041030 776 EDGEWOOD RD

SAN MATEO, C New detached ADU BD-2022-285334 ADU R 0 1 3/31/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33292120 888 S FREMONT ST

SAN MATEO, C New detached ADU BD-2022-286306 ADU R 0 1 3/29/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 35133050 1520 DIX ST Unit: B

SAN MATEO, CA New detached ADU BD-2022-286947 ADU R 0 1 3/10/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 39060900 70 LODATO AVE Unit: B

SAN MATEO New attached ADU BD-2022-284400 ADU R 0 1 6/26/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 39060900 70 LODATO AVE Unit: C

SAN MATEO Convert accessory st BD-2023-288421 ADU R 0 1 6/26/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34024130 532 PARROTT DR Unit: B

SAN MATE Convert portion of SF BD-2023-289732 ADU R 0 1 6/26/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34081150 215 HARVARD RD Unit: B

SAN MATE New attached ADU BD-2023-291033 ADU R 0 1 9/13/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 32280600 114 GRAMERCY DR Unit: B

SAN MAT Convert portion of SF BD-2023-289949 ADU R 0 1 8/2/2023 1 0 NONE Y ADU Formula ADU approved under mi 42083040 419 LA JOLLA AVE Unit: B

SAN MATE New attached ADU BD-2023-288452 ADU R 0 1 8/1/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 32031020 747 COSTA RICA AVE Unit: B

SAN MA Convert detached acc BD-2023-289114 ADU R 0 1 8/10/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34292170 1319 PALM AVE Unit: B

SAN MATEO, New attached ADU BD-2023-289263 ADU R 0 1 5/4/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 32162090 351 E BELLEVUE AVE Unit: B

SAN MA Convert detached acc BD-2022-286801 ADU R 0 1 4/17/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33124060 1121 CYPRESS AVE Unit: B

SAN MAT New detached ADU BD-2023-289194 ADU R 0 1 11/13/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 39162030 469 W 25TH AVE Unit: B

SAN MATEO New attached ADU
BD-2023-288026
PA-2022-033
ADU R 0 1 2/8/2023 1 0 0 NONE Y ADU Formula
ADU approved under mi
39103060 2124 ENSENADA WAY Unit: B

SAN M New attached ADU BD-2022-284190 ADU R 0 1 6/7/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33031140 722 N HUMBOLDT ST Unit: B

SAN M New detached ADU BD-2023-289195 ADU R 0 1 11/6/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 32042130 426 COSTA RICA AVE Unit: B

SAN MA Convert portion of SF BD-2023-290708 ADU R 0 1 8/15/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34033100 415 FAIRFAX AVE Unit: B

SAN MATEO New attached ADU
BD-2023-290757,
PA-2021-066, PA-
2022-039
ADU R
0 1
8/31/2023
1 0 0 NONE Y
ADU Formula
ADU approved under mi
32062010 725 HURLINGHAM AVE Unit: B

SAN M Convert parking to JA BD-2022-287542 ADU R 0 1 2/15/2023 1 1 12/20/2023 1 0 NONE Y ADU Formula ADU approved under mi 32033030 635 COSTA RICA AVE

SAN MATEO, C New detached ADU (
BD-2023-289089
PA-2022-055
ADU R 1 4/7/2023 1 1 8/28/2023 1 0 0 NONE Y ADU Formula ADU approved under mi
42081120 325 36TH AVE Unit: B

SAN MATEO, C New detached ADU ( BD-2023-290050 ADU R 0 1 10/10/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 39165130 239 W 25TH AVE

SAN MATEO, CA 94Convert detached ga BD-2022-287228 ADU R 0 1 6/5/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33335220 817 ADA ST Unit: B

SAN MATEO, CA New attached ADU (7 BD-2022-285254 ADU R 0 1 7/5/2023 1 0 NONE Y ADU Formula ADU approved under mi 33332290 709 PATRICIA AVE

SAN MATEO, CA 9Convert portion of SF BD-2022-285416 ADU R 0 1 4/27/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33241220 214 S Quebec St

SAN MATEO, CA 94New attached ADU (6 BD-2022-285619 ADU R 0 1 5/3/2023 1 1 10/25/2023 1 0 NONE Y ADU Formula ADU approved under mi 33292230 727 S ELDORADO ST Unit: B

SAN MA New detached ADU ( BD-2022-286244 ADU R 0 1 7/14/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34294080 141 15TH AVE Unit: B

SAN MATEO, C New detached ADU ( BD-2022-286636 ADU R 0 1 2/9/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33345080 1857 SHOREVIEW AVE Unit: B

SAN M New detached ADU ( BD-2022-284842 ADU R 0 1 1/18/2023 1 1 1/26/2024 1 0 NONE Y ADU Formula ADU approved under mi 39142280 238 24TH AVE Unit: B

SAN MATEO, C New attached ADU (7
BD-2023-289881
PA-2022-020
ADU R 0 1 7/28/2023 1 0 0 (2021) - Residential Lo Y ADU Formula SB 9 Lot Split
34273140 953 LAUREL AVE

SAN MATEO, CA 94New detached ADU ( BD-2022-286526 ADU R 0 1 8/22/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 39331190 442 27TH AVE Unit: B

SAN MATEO, C New attached ADU (4
BD-2021-281714
PA-2021-074
ADU R 0 1 2/28/2023 1 0 0 NONE Y ADU Formula
ADU approved under mi
34054250 423 COLGATE WAY Unit: B

SAN MAT Convert attached gar BD-2022-287411 ADU R 0 1 5/31/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 42095060 4041 FERNWOOD ST Unit: B

SAN MA New detached ADU ( BD-2023-289940 ADU R 0 1 6/22/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34304060 30 16TH AVE Unit: B

SAN MATEO, CA New detached ADU a BD-2023-289304 ADU R 0 1 5/19/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 39402030 715 31ST AVE

SAN MATEO, CA 9440New attached ADU (7 BD-2023-290377 ADU R 0 1 10/10/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 35401320 1319 ADRIAN AVE

SAN MATEO, CA 9Convert addition to ne BD-2022-284280 ADU R 0 1 7/6/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33374130 1803 DALE AVE

SAN MATEO, CA 944New attached ADU (4
BD-2023-290890
PA-2021-074 ADU R 0 1 9/19/2023 1 0 0 NONE Y ADU Formula ADU approved under mi
40082310 54 MCLELLAN AVE Unit: B

SAN MATE New detached ADU ( BD-2022-283689 ADU R 0 1 1/17/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 42095060 4041 FERNWOOD ST Unit: C

SAN MA Convert portions of S BD-2023-289942 ADU R 0 1 6/22/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34213160 410 ARAGON BLVD Unit: B

SAN MAT Convert detached acc BD-2023-288841 ADU R 0 1 4/5/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33354160 968 S NORFOLK ST Unit: B

SAN MAT New attached ADU (5 BD-2023-292319 ADU R 0 1 12/27/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33127060 31 S IDAHO ST

SAN MATEO, CA 944New detached ADU ( BD-2023-288302 ADU R 0 1 12/15/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34055070 603 PARROTT DR Unit: B

SAN MATE New detached ADU ( BD-2023-290331 ADU R 0 1 11/21/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 35254010 1618 CELESTE DR Unit: B

SAN MATE Convert portion of SF BD-2023-287657 ADU R 0 1 2/28/2023 1 1 12/15/2023 1 0 NONE Y ADU Formula ADU approved under mi 34394170 1534 EDINBURGH ST Unit: B

SAN MA New attached ADU (5 BD-2022-287589 ADU R 0 1 1/26/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33381450 1851 NASH DR Unit: B

SAN MATEO, New detached ADU ( BD-2022-287514 ADU R 0 1 2/16/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 40144080 3708 ORINDA DR Unit: B

SAN MATEO Convert attached gar BD-2023-288915 ADU R 0 1 11/16/2023 1 1 1/9/2024 1 0 NONE Y ADU Formula ADU approved under mi 39242060 888 W HILLSDALE BLVD Unit: B

SAN New detached ADU ( BD-2022-287626 ADU R 0 1 6/20/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 42093120 3920 WILSHIRE AVE Unit: B

SAN MAT New detached ADU ( BD-2023-288492 ADU R 0 1 7/17/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33083430 434 N KINGSTON ST Unit: B

SAN MA New detached ADU ( BD-2023-287751 ADU R 0 1 8/17/2023 1 1 8/17/2023 1 0 NONE Y ADU Formula ADU approved under mi 34366100 1238 QUINCE ST

SAN MATEO, CA 94Convert existing deta
BD-2023-292165
PA-2023-037
ADU R 1 11/29/2023 1 1 12/6/2023 1 0 0 NONE Y ADU Formula ADU approved under mi
34274090 913 PALM AVE

SAN MATEO, CA 9440Convert portions of S BD-2022-284248 ADU R 0 2 1/25/2023 2 0 0 NONE Y ADU Formula ADU approved under mi 33072300 216 N HUMBOLDT ST Unit: B

SAN M New attached ADU (6 BD-2023-288846 ADU R 0 1 4/13/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 34371070 240 HOBART AVE Unit: B

SAN MATEO New detached ADU ( BD-2023-290075 ADU R 0 1 11/1/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 32204130 513 E SANTA INEZ AVE Unit: B

SAN M New detached ADU ( BD-2023-287970 ADU R 0 1 6/9/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 35088090 1106 HADDON DR Unit: B

SAN MATE New detached ADU ( BD-2023-289268 ADU R 0 1 9/13/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 35083030 722 E 16TH AVE Unit: B

SAN MATEO New detached ADU ( BD-2023-292259 ADU R 0 1 12/21/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 35251420 601 JOANNE DR

SAN MATEO, CA 94New detached ADU ( BD-2021-280198 ADU R 0 1 7/10/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 33202160 1533 CYPRESS AVE

SAN MATEO, CA Legalize and convert BD-2022-285954 ADU R 0 1 6/14/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 39343190 252 DELMAR WAY

SAN MATEO, CA 9New detached ADU ( BD-2023-288448 ADU R 0 1 11/29/2023 1 0 0 NONE Y ADU Formula ADU approved under mi 35401450 1 WATERS PARK DR

SAN MATEO C New detached SFD (2
BD-2020-278372
PA18-013 & PA20-
043
SFD O
0 1
3/13/2023
1 0 0 NONE N DB 1000 20.0% 1 Development Standar Yes
Note: Density Bonus Inc
35401450 1 WATERS PARK DR

SAN MATEO C New detached SFD (2
BD-2020-278371
PA18-013 & PA20-
043
SFD O
0 1
3/13/2023
1 0 0 NONE N DB 1000 20.0% 1 Development Standar Yes
Note: Density Bonus Inc
39142280 236 24TH AVE

SAN MATEO, CA 9440New SFD under SB 9
BD-2022-287512
PA-2022-020
SFD O 0 1 7/28/2023 1 0 0 NONE Y 1 Demolished O ADU approved under mi 42085290 312 W 39TH AVE
SAN MATEO, CA 94Demolish (e) SFD and
BD-2023-288091
PA-2021-078 SFD O 0 1 11/16/2023 1 0 0 NONE Y 1 Demolished O 39151160 136 23RD AVE

SAN MATEO, CA 9440Demolish (e) SFD and
BD-2022-285591
PA-2021-072 2 to 4 O 0 2 2/22/2023 2 0 0 NONE Y 1 Demolished O 42085290 310 W 39TH AVE

SAN MATEO CA 94Demolish (e) SFD and
BD-2023-288093
PA-2021-078 SFD O 0 1 11/16/2023 1 0 0 NONE Y
32033030 635 COSTA RICA AVE

SAN MATEO, C Demolish (e) SFD and
BD-2023-289089
PA-2022-055 SFD O 1 4/7/2023 1 1 8/28/2023 1 0 0 NONE Y 1 Demolished O 39162030 469 W 25TH AVE

SAN MATEO, CA 94New SFD (two-story)
BD-2022-286733
PA-2022-033 SFD O 0 1 2/8/2023 1 0 0 NONE Y 1 Demolished O 32115230 844 JEFFERSON CT

SAN MATEO C Demolish (E) SFD an
BD-2023-289890
PA-2022-093 SFD O 0 1 12/11/2023 1 0 0 NONE Y 1 Demolished O 39142280 236 24TH AVE

SAN MATEO, CA 9440New SFD using SB9
BD-2022-287527
PA-2022-020 SFD O 0 1 7/28/2023 1 0 0 NONE Y 1 Demolished O ADU approved under mi 33152180 121 S FREMONT ST

SAN MATEO, CA New detached two-st
BD-2021-282704
PA-2020-057 2 to 4 O 0 2 6/16/2023 2 0 0 NONE Y 1 Demolished O 39132300 438 24TH AVE

SAN MATEO CA 9440New SFD
(Demolition
BD-2022-286275
PA-2022-031 SFD O 0 1 2/3/2023 1 0 0 NONE Y 1 Demolished O 34033100 415 FAIRFAX AVE

SAN MATEO CA 94New SFD (two-story 3
BD-2022-286298
PA-2021-066; PA-
2022-039
SFD O
0 1
8/31/2023
1 0 0 NONE Y 1 Demolished O
33354230 1417 HEMLOCK AVE

SAN MATEO, CA New detached ADU ( BD-2020-275237 ADU R 0 0 1 8/11/2023 1 0 NONE Y ADU Formula ADU approved under mi 34213090 417 CASTILIAN WAY

SAN MATEO, CA Convert portions of (e BD-2022-284252 ADU R 0 0 1 2/6/2023 1 0 NONE Y ADU Formula ADU approved under mi 32177120 418 HIGHLAND AVE

SAN MATEO CA Convert portion of (E) BD-2021-281186 ADU R 0 0 1 3/24/2023 1 0 NONE Y ADU Formula ADU approved under mi 33365290 1009 S NORFOLK ST

SAN MATEO, C New attached ADU (4 BD-2020-276219 ADU R 0 0 1 4/14/2023 1 0 NONE Y ADU Formula ADU approved under mi 32198060 257 N ELLSWORTH AVE

SAN MATEO New two-story detach BD-2020-275606 ADU R 0 0 1 6/22/2023 1 0 NONE Y ADU Formula ADU approved under mi 34366120 1248 QUINCE ST

SAN MATEO CA 94Convert (e) detached BD-2021-281588 ADU R 0 0 1 6/9/2023 1 0 NONE Y ADU Formula ADU approved under mi 33301020 926 E 5TH AVE

SAN MATEO, CA 9440Convert (E) detached BD-2021-279788 ADU R 0 0 1 6/2/2023 1 0 NONE Y ADU Formula ADU approved under mi 33323200 931 S IDAHO ST

SAN MATEO, CA 94Convert (e) detached BD-2022-283632 ADU R 0 0 1 2/3/2023 1 0 NONE Y ADU Formula ADU approved under mi 39382100 130 28TH AVE

SAN MATEO CA 9440New detached ADU ( BD-2022-284055 ADU R 0 0 1 6/12/2023 1 0 NONE Y ADU Formula ADU approved under mi 32114160 229 STATE ST

SAN MATEO, CA 9440Convert (E) garage to BD-2020-277259 ADU R 0 0 1 5/12/2023 1 0 NONE Y ADU Formula ADU approved under mi 32305180 126 N DELAWARE ST

SAN MATEO, C New detached ADU ( BD-2022-284550 ADU R 0 0 1 5/24/2023 1 0 NONE Y ADU Formula ADU approved under mi 39324200 432 28TH AVE

SAN MATEO CA 9440New detached ADU ( BD-2020-278199 ADU R 0 0 1 7/17/2023 1 0 NONE Y ADU Formula ADU approved under mi 39052030 317 W 20TH AVE Unit: B

SAN MATEO New detached ADU ( BD-2021-280035 ADU R 0 0 1 7/19/2023 1 0 NONE Y ADU Formula ADU approved under mi 34061050 609 VIRGINIA AVE

SAN MATEO, CA 94Convert (e) attached BD-2022-283272 ADU R 0 0 1 7/7/2023 1 0 NONE Y ADU Formula ADU approved under mi 42093010 3901 MARSHALL AVE

SAN MATEO C New attached ADU (6 BD-2021-279328 ADU R 0 0 1 7/11/2023 1 0 NONE Y ADU Formula ADU approved under mi 33263360 633 BAYSHORE BLVD

SAN MATEOConvert portions of (e BD-2021-282380 ADU R 0 0 1 6/19/2023 1 0 NONE Y ADU Formula ADU approved under mi 32012040 715 CRESCENT AVE

SAN MATEONew detached ADU (
BD-2021-279511
PA11-085 ADU R 0 0 1 6/26/2023 1 0 NONE Y ADU Formula
ADU approved under mi
40053080 137 POINSETTIA AVE

SAN MATEONew detached ADU ( BD-2021-282405 ADU R 0 0 1 3/23/2023 1 0 NONE Y ADU Formula ADU approved under mi 39131050 479 22ND AVE

SAN MATEO, CA 9440Converting (e) detach BD-2022-285130 ADU R 0 0 1 3/13/2023 1 0 NONE Y ADU Formula ADU approved under mi 34288230 126 12TH AVE

SAN MATEO CA 9440New detached ADU ( BD-2021-281427 ADU R 0 0 1 3/17/2023 1 0 NONE Y ADU Formula ADU approved under mi 34285080 137 12TH AVE

SAN MATEO, CA 9440Convert (E) 569SF de BD-2020-276005 ADU R 0 0 1 3/22/2023 1 0 NONE Y ADU Formula ADU approved under mi 33194060 28 LINDBERGH ST Unit: B

SAN MATE New attached ADU (4 BD-2022-284958 ADU R 0 0 1 3/9/2023 1 0 NONE Y ADU Formula ADU approved under mi 35254290 640 VANESSA DR

SAN MATEO CA 9New detached ADU ( BD-2021-281691 ADU R 0 0 1 1/13/2023 1 0 NONE Y ADU Formula ADU approved under mi 42171310 608 HIGHVIEW CT Unit: B

SAN MATE Legalize ADU attache BD-2021-283136 ADU R 0 0 1 1/9/2023 1 0 NONE Y ADU Formula ADU approved under mi 35233050 1926 IVY ST

SAN MATEO Convert (E) attached BD-2021-282311 ADU R 0 0 1 1 2/1/2023 2 0 NONE Y ADU Formula ADU approved under mi 34161020 40 S ELDORADO ST

SAN MATEO CA Convert garage to AD BD-2019-273242 ADU R 0 0 1 2/23/2023 1 0 NONE Y ADU Formula ADU approved under mi 40228170 4109 BRANSON DR

SAN MATEO, CA Convert (e) shed to A BD-2020-275126 ADU R 0 0 1 8/24/2023 1 0 NONE Y ADU Formula ADU approved under mi 33296070 801 S GRANT ST

SAN MATEO, CA 94New detached ADU (
BD-2021-281861
PA-2020-066 ADU R 0 0 1 8/8/2023 1 0 NONE Y ADU Formula ADU approved under mi
35143260 1525 LODI AVE

SAN MATEO CA 9440Convert portion of (E) BD-2022-285351 ADU R 0 0 1 1 9/6/2023 2 0 NONE Y ADU Formula ADU approved under mi 32133200 804 N CLAREMONT ST

SAN MATEO Convert (E) garage to BD-2021-282591 ADU R 0 0 1 9/19/2023 1 0 NONE Y ADU Formula ADU approved under mi 39051190 2130 ISABELLE AVE

SAN MATEONew detached ADU ( BD-2021-279915 ADU R 0 0 1 10/4/2023 1 0 NONE Y ADU Formula ADU approved under mi 34104070 552 EDINBURGH ST

SAN MATEO CA Convert detached ga BD-2022-283861 ADU R 0 0 1 9/7/2023 1 0 NONE Y ADU Formula ADU approved under mi 31061200 438 MIDWAY AVE Unit: B

SAN MATEO Convert detached ga BD-2022-287478 ADU R 0 0 1 9/21/2023 1 0 NONE Y ADU Formula ADU approved under mi 34334160 1326 ASHWOOD CT

SAN MATEO, CA New detached ADU ( BD-2021-280094 ADU R 0 0 1 9/27/2023 1 0 NONE Y ADU Formula ADU approved under mi 33023240 856 N IDAHO ST

SAN MATEO CA 94New detached ADU ( BD-2020-275510 ADU R 0 0 1 9/29/2023 1 0 NONE Y ADU Formula ADU approved under mi 42073020 3606 KENWOOD AVE

SAN MATEO, C Convert (e) attached BD-2022-283676 ADU R 0 0 1 10/31/2023 1 0 NONE Y ADU Formula ADU approved under mi 33351040 956 NORTON ST

SAN MATEO, CA 94New detached ADU ( BD-2020-277642 ADU R 0 0 1 11/3/2023 1 0 NONE Y ADU Formula ADU approved under mi 34158130 11 S CLAREMONT ST

SAN MATEO C New detached ADU ( BD-2021-281149 ADU R 0 0 1 9/22/2023 1 0 NONE Y ADU Formula ADU approved under mi 34303080 15 16TH AVE Unit: B

SAN MATEO, CA New detached ADU ( BD-2021-280331 ADU R 0 0 1 5/30/2023 1 0 NONE Y ADU Formula ADU approved under mi 34104080 558 EDINBURGH ST

SAN MATEOConvert (E) detached BD-2021-280213 ADU R 0 0 1 5/16/2023 1 0 NONE Y ADU Formula ADU approved under mi 33023210 840 N IDAHO ST Unit: B

SAN MATEO New detached ADU ( BD-2022-283704 ADU R 0 0 1 11/15/2023 1 0 NONE Y ADU Formula ADU approved under mi 32100050 121 W POPLAR AVE

SAN MATEO, CA New detached ADU BD-2022-283813 ADU R 0 0 1 11/14/2023 1 0 NONE Y ADU Formula ADU approved under mi 33294050 718 S GRANT ST

SAN MATEO, CA 94Convert portion of (e)
BD-2022-284402
PA-2021-041 ADU R 0 0 1 10/23/2023 1 0 NONE Y ADU Formula ADU approved under mi
40073170 54 E 40TH AVE

SAN MATEO, CA 9440Two new ADUs (879s BD-2020-275998 ADU R 0 0 1 1 11/29/2023 2 0 NONE Y ADU Formula ADU approved under mi 34373130 1262 NADINA ST Unit: B

SAN MATEO Convert (E) detached BD-2021-283000 ADU R 0 0 1 12/14/2023 1 0 NONE Y ADU Formula ADU approved under mi 32023010 201 W POPLAR AVE

SAN MATEO, CA New detached ADU BD-2019-272665 ADU R 0 0 1 12/14/2023 1 0 NONE Y ADU Formula ADU approved under mi 35131090 1608 NORTON ST

SAN MATEONew attached ADU BD-2021-279697 ADU R 0 0 1 10/24/2023 1 0 NONE Y ADU Formula ADU approved under mi 33381320 1980 SHOREVIEW AVE Unit: B

SAN M New detached ADU BD-2021-280327 ADU R 0 0 1 9/20/2023 1 0 NONE Y ADU Formula ADU approved under mi 35251070 1642 S GRANT ST Unit: 5

SAN MATE Legalize and convert BD-2022-284697 ADU R 0 0 1 12/29/2023 1 0 NONE Y ADU Formula ADU approved under mi 35401450 1 WATERS PARK DR

SAN MATEONew SFD (Borelle, Lo
BD-2020-277803
PA-2018-013
SFD O
0 0 1 5/18/2023 1 0 NONE N DB 1000 20.0% 1
Development
Standards
Modification
Yes
Note: Density Bonus
Incentive: 6% increase
in FAR (above base
FAR)
34182170 406 E 3RD AVE New mixed-use of 4 s
BD-2019-272038
PA 2018-043
MH R
0 0 3 22 9/7/2023 25 0 NONE Y DB 1000 35.0% 2
Development
Standards
Modification
Yes
Density Bonus
concession to exceed
maximum base FAR
and allow tandem office
parking
35401450 1 WATERS PARK DR

SAN MATEO, C New 12-unit condo - W
BD-2020-277813
PA-2018-013
MH O
0 0 1 11 3/29/2023 12 0 NONE N DB 1000 20.0% 1
Development
Standards Modification
Yes
Note: Density Bonus
Incentive: 6% increase
in FAR (above base
FAR)
35401450 1 WATERS PARK DR

SAN MATEO, C New 9-unit condo "W
BD-2021-280930
PA-2018-013
MH O
0 0 2 7 5/26/2023 9 0 NONE N DB 1000 20.0% 1
Development
Standards Modification
Yes
Note: Density Bonus
Incentive: 6% increase
in FAR (above base
FAR)
35401450 1 WATERS PARK DR

SAN MATEO, C New 9-Unit Condo; W
BD-2021-282209
PA-2018-013
MH O
0 0 2 7 5/26/2023 9 0 NONE N DB 1000 20.0% 1
Development
Standards Modification
Yes
Note: Density Bonus
Incentive: 6% increase
in FAR (above base
FAR)
31083040 830 BROMFIELD RD New SFD: 2-story, 5,0
BD-2021-279249
PA-2020-024
SFD O 0 0 1 5/25/2023 1 0 NONE Y
34367250 1247 QUINCE ST New SFD (1575 sf, tw
BD-2021-282612
PA-2021-022
SFD O 0 0 1 12/13/2023 1 0 NONE Y
Density Bonus
1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 4 7 10
Note: "+" indicates an optional field
Housing with Financial Assistance
and/or Deed Restrictions Demolished/Destroyed UnitsProject Identifier Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units

237 of 1487

Jurisdiction San Mateo ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 01/31/2023 - 01/31/2031
1 Projection Period 3 4
RHNA Allocation by
Income Level
Projection Period -
06/30/2022-
01/30/2023
2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Units to Date (all years)
Total Remaining
RHNA by Income
Level
Deed Restricted - - - - - - - - - - Non-Deed Restricted 1 24 - - - - - - - - Deed Restricted - - - - - - - - - - Non-Deed Restricted 13 24 - - - - - - - - Deed Restricted - - - - - - - - - - Non-Deed Restricted 25 20 - - - - - - - - Above Moderate 3,040 10 24 - - - - - - - - 34 3,006 7,015
49 92 - - - - - - - - 141 6,874 5 6 7
Extremely low-Income
Need 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Units to Date
Total Units
Remaining
889 - - - - - - - - - - 889 Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected].
1,130
25 This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.
45 Moderate
1,777
1,023
1,175
Please contact HCD if your data is different than the material supplied here 37 2
Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
1,752
986
Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will only include units that were permitted since the start of the planning period. Projection Period units are in a separate column.

Total RHNA
Total Units
Income Level
Very Low
Low
Extremely Low-Income Units*
Note: units serving extremely low-income households are included in the very low-income RHNA progress and must be reported as very low-income units in section 7 of Table A2. They must also be reported in the extremely low- income category (section 13) in Table A2 to be counted as progress toward meeting the extremely low-income housing need determined pursuant to Government Code 65583(a)(1). *Extremely low-income houisng need determined pursuant to Government Code 65583(a)(1). Value in Section 5 is default value, assumed to be half of the very low-income RHNA. May be overwritten.

Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1).

238 of 1487

Jurisdiction San Mateo ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 01/31/2023 - 01/31/2031
Date of Rezone Rezone Type
2 4 5 6 7 9 10 11
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Date of Rezone Very Low-
Income Low-Income Moderate-Income Above Moderate-
Income
Rezone Type Parcel Size
(Acres)
General Plan
Designation Zoning Minimum
Density Allowed
Maximum
Density Allowed
Realistic
Capacity Vacant/Nonvacant Description of Existing
Uses
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Summary Row: Start Data Entry Below
83 Project Identifier RHNA Shortfall by Household Income Category Sites Description 1 Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law Table C

239 of 1487

Jurisdiction San Mateo
Reporting Year 2023 (Jan. 1 - Dec. 31)
1 2 3 4
Name of Program Objective Timeframe in H.E Status of Program Implementation H1.1 Monitor Regional
Housing Needs Allocation and
Pipeline projects
a) Provide an annual report on housing production to the City Council each March, prior to submittal of the Annual Progress Report to HCD by April 1st. The report will include an assessment on the City’s RHNA progress and, as
needed, identify additional sites to ensure ongoing
compliance with “no net loss” provisions of State law.
b) Conduct a mid-cycle review of realistic capacity
projections and pipeline project housing production to ensure outcomes are aligned with projections. Update sites
inventory to include additional sites to ensure ongoing compliance with “no net loss” provisions of State law.
a) 2023 – 2031 (Annually)
b) 2027 (Mid-cycle review)
a) The City continues to enforce the provisions of No Net Loss law through the planning application process. Projects are required to propose a net increase of units through redevelopment and provide replacement of any deed restricted low-income units.
b) By 2027, additional sites for housing redevelopment will be identified, as necessary, to ensure that the City meets its share of RHNA requirements.

H1.2 Utilize Public Funding
and Properties for New
Affordable Housing
a) Continue to set aside 20% of general fund property tax revenues from former RDA areas (aka "Boomerang Funds”), as well as the Affordable Housing Commercial Linkage Fee Fund to use for affordable housing development, prioritizing funding allocation to projects that include units for extremely low income (ELI) households.
b) Identify ways to create a stand-alone Housing Trust Fund using available funding sources and utilizing that fund to leverage new funding sources, including the Bay Area Housing Finance Authority (BAHC) and the Bay Area
Preservation Pilot (BAPP).
c) Prioritize available local housing funds to assist in the production of at least 543 below market rate units by 2031, including within the study areas of the General Plan that allow high-density housing by holding developer roundtable meetings at least once per year. Encourage developers to include ELI units in their projects.
d) Support development of 71 units of affordable housing on the City owned parking lot at 4th and Railroad as part of the public-private partnership (Bespoke project).
i. Development team has been selected as part of an RFP process, an Exclusive Negotiating Agreement (ENA) has
been executed with the developer, and the project’s pre- application review has been completed.
ii. Complete the Planning Application Process for the project within 18 months of Housing Element adoption.
iii. Facilitate permitting and project construction during the planning period.
e) Support affordable housing development, including ELI units, on the City owned property at 4142 S. El Camino Real. i. Complete site analysis within 24 months of Housing Element adoption.
ii. Issue RFP within 48 months of Housing Element
d ti
a) 2023 – 2031 (Ongoing)
b) 2025
c) 2023 – 2031 (Ongoing)
d) 2024
e) 2023 – 2031 (Ongoing)
a) The City continues to set aside 20% of general fund property tax revenues from former RDA areas in a dedicated housing fund to support affordable housing production, with a prioritization for ELI households. b) The City will explore ways to create a standalone housing trust fund in 2025 c) Construction of a new 225 unit affordable project (Kiku Crossing) is nearing completion. A new supportive housing project (New Beginnings) with 4-6 new ELI units set-aside for transition aged youth was identified for PLHA funding, with entitlement planned in 2024.
d) Application review of a 71 unit affordable project (Bespoke) in partnership with a private affordable housing developer on City owned land at 4th and Railroad Ave. continues. The project includes 71 BMR units with 3 studio units, 24 1-bedroom units, 22 2-bedroom units, and 22 3-bedroom units, that will be affordable to LI and VLI households.
e) The City will begin exploring options for producing new affordable housing units on the property at 4142 S El Camino Real in 2025.

H1.3 Increase Affordable
Housing Production
a) Amend the Affordable Housing Ordinance (SMMC
Chapter 27.16.050) and Inclusionary Housing Policy to allow for alternative compliance options to onsite inclusionary unit development within one year of Housing Element adoption. b) Adopt an updated Density Bonus/Community Benefits
program that provides additional incentives and/or
streamlining options for housing projects that provide
additional affordable units or the most needed unit types beyond minimum state requirements.

Both of these actions would include an assessment of
applicable state law to ensure that the City meets or exceeds all requirements.
c) Target ELI populations to the extent feasible.
a) 2024
b) 2025
a) In 2023, the City initiated research with a consultant to analyze economic feasibility to incentivize affordable housing production in large projects. b) The City anticipates presenting policy options and recommendations to City Council in 2024, which would be on track for the 2025 implementation target. c) Ongoing as part of overall research and policy recommendation.

H1.4 Support Increased
Accessory Dwelling Unit
Development
a) Amend the City’s ADU Ordinance (SMMC Chapter

27.19) to align with current State law and to resolve any inconsistencies identified by HCD.
b) Maintain and expand the ADU information and resources available to home owners and applicants provided on the City’s website.
c) Collaborate with 21 Elements and other jurisdictions in San Mateo County to find ways to enhance available ADU
resources, establish uniform standards and requirements, and effective ways to monitor ADU affordability.
d) Monitor ADU occupancy and rent levels to verify that affordability allocations. Tools to monitor will include, but are not limited to, collaboration with 21 Elements or ABAG to develop a uniform approach to tracking ADU affordability countywide, and surveying ADU applicants during the
building permit review process to understand intended use, occupancy and rent charged.
e) Continue to offer flat fees for ADU building permits, and review ADU permit fees every 2-3 years. If fees are found to be a barrier to ADU production, the City will make reductions as necessary to reduce cost barriers.
f) Provide an annual report on ADU permitting data to verify that Housing Element production targets are being achieved. If ADU production targets are not achieved for two consecutive years, then, within six months, pursue additional actions, including fee reductions, increased homeowner
resources and assistance, funding assistance, identifying additional sites and/or code amendments, to incentivize ADU production
a) 2024
b) 2023 – 2031 (Ongoing)
c) 2023 – 2031 (Ongoing)
d) 2023 - 2031 (Ongoing)
e) 2023 – 2031 (Ongoing)
f) 2023 – 2031 (Annually)
a) Staff continues to review state law to ensure that the City' ADU Ordinance is in compliance. To-date, HCD has not identified any inconsistencies or compliance issues with the City's ADU Ordinance.
b) The City maintains an ADU resource website that provides current handouts and guidance on the City of San Mateo ADU regulations.
c) Through 21 Elements, the City has joined with a County-wide effort to establish an ADU center to support additional ADU construction and monitor affordability.
d) Work to be completed by the ADU Center includes development of best practices and approaches for monitoring ADU occupancy and rent levels, pre- reviewed plan and templates, and other tools and resources for property owners interested in building an ADU.
e) The City currently offers flat fees for ADU building permits at a rate that is comparable with other jurisdictions in San Mateo County. f) In 2023, the City issued permits for 83 new ADUs and issued certificates of occupancy (finaled) for 50 new ADUs, which is well-above the Housing Element's production target 55 permits issued per year.

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583

240 of 1487

1 2 3 4
Name of Program Objective Timeframe in H.E Status of Program Implementation Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 H1.5 Encourage Family
Housing
a) Present options to City Council for requiring a minimum percentage of three-bedroom units in City subsidized
projects;
b) Present options to City Council for requiring a minimum percentage of family-sized units in private development projects as part of the Inclusionary Policy update.
c) Should such policy recommendations not materialize into code amendments, explore alternative methods to promote family sized units through the community benefits program. a) 2025
b) 2025
c) 2025
a) In 2023, the City initiated research with a consultant to evaluate demand and promote more inclusionary family housing (two- and three-bedroom affordable housing units). In addition, the 71-unit affordable housing project, Bespoke, will include 22 2-bedroom units and 22 3-bedroom units for family housing. b) The City anticipates presenting policy options and recommendations to City Council in 2024.
c) Pending above efforts
H1.6 Streamline Housing
Application Review
a) Update the City Council resolutions that establish the pre- application and development review processes to eliminate the pre-application requirement for housing projects and eliminate the third-party design review requirement for housing projects that meet objective standards.
b) Amend the Zoning Code to allow residential projects with up to 25 units to be approved administratively.
c) Update permit application submittal requirements.
d) Develop Zoning Code amendments to align City
requirements with SB 330 and make a recommendation to
the City Council.
a) 2024
b) 2023
c) 2023-2031 (Ongoing)
d) 2025
a) In 2024, the City will streamline the development review process by removing the pre-application and third-party design review requirements through an updated resolution with City Council.
b) In 2023, the City adopted code amendments to allow Zoning Administrator approval for housing projects up to 25 units, subject to Objective Design Standards.
c) Efforts to further streamline and update the permit application submittal requirements are ongoing.
d) By 2025, the City will adopt code amendments that are consistent with SB 330.

H1.7 Update Zoning Code
Standards to Support Housing
Production
a) Evaluate the standards and requirements in all zone districts that allow for multi-family residential and amend the Zoning Code as needed to reduce or eliminate constraints to housing construction. Specifically: 1) exclude covered parking and other elements as needed from Floor Area Ratio (FAR) calculation for housing projects with affordable units, 2) specify where Single-Room Occupancy (SRO) units are
permitted consistent with government Code 65583(c)(1), and 3) specify that Manufactured Homes that are built on a
permanent foundation are subject to the same zoning
requirements and development standards as single-family homes.
b) Amend the Zoning Code to reduce off-street parking requirements for residential units (SMMC Chapter 27.64) as follows: Studio and 1 Bedroom units to 1 space, 2
Bedrooms and above to 1.5 spaces; and for projects within ½ mile of transit, consistent with AB2097, no off-street parking shall be required. As part of this amendment, staff will review all other parking related requirements and make recommendations to reduce or eliminate any other parking related requirements identified as a constraint.
c) Amend the Zoning Code to make residential uses, which currently require a special use permit, a permitted use in the C1, C2, C3, E1 and E2 districts for non-R Overlay areas. d) Rezone sites with quasi-public uses such as schools, churches, and other facilities of an educational, religious, charitable, or philanthropic nature, to “Quasi-Public,” following completion of the General Plan Update and allow for a variety of housing types such as duplexes to multi- family as permitted uses in this zone district.
e) Evaluate the feasibility of an affordable housing quasi- public overlay or code amendment to support the production of affordable housing on quasi-public sites, such as religious d ti l i tit ti
a) 2025
b) 2025
c) 2024
d) 2025
e) 2026
a) Comprehensive code amendments are planned in 2025 to remove constraints and to encourage a variety of housing project types.
b) In 2024, the City plans to amend the Zoning Code to reduce off-street parking requirements for residential uses.
c) In 2024, the City will initiate comprehensive code amendments to permit residential uses for all Commercial and Executive Office zones in non-R overlay areas. This removes the requirement for a special use permit. d) In 2025, the City will initiate rezoning Citywide to include a "Quasi-Public" zone.
e) The City will also conduct a feasibility study for an affordable housing quasi- public overlay in 2026.

H1.8 Adopt Objective Design
Standards
Adopt Objective Design Standards for multi-family residential projects and mixed-use projects with a residential
component.
2023
On November 20, 2023, the City adopted ODS and associated code amendments to streamline eligible small-scale housing projects. Code amendments include Zoning Administrator approval for housing projects up to 25 units, subject to ODS.

H1.9 Establish Minimum
Densities for Mixed-Use
Projects
a) Amend the Zoning Code to require that properties
designated for mixed-uses, in the Sites Inventory List, allow 100 percent residential use and require that residential use occupy 50 percent or more of the total floor area of a mixed- use project consistent with Government Code Section
65583(h), and establish a minimum residential density for mixed-use projects elsewhere in the City that include a residential component.
b) Study and present to City Council options for requiring a residential component in all mixed-use projects in certain zones or areas.
a) 2024
b) 2024
a) In 2023, the City initiated policy work with a consultant to evaluate minimum residential density requirements for large commercial mixed-use project. b) The City anticipates presenting policy options and recommendations to City Council in 2024.

H1.10 Establish By-Right
Housing Designation for Prior
Housing Sites
Amend the Zoning Code to establish a By-Right designation for housing sites reused from prior Housing Elements for housing projects that propose a minimum of 20% affordable units. Zoning for these sites must be at least 30 units/acre to meet default density requirements for lower-income
households per Gov. Code Section 65583.2(c).
2024
Staff has started mapping and developing the Ordinance language to meet this statutory requirement, and anticipates adoption in the first half of 2024 to amend the Zoning Code and establish a By-Right designation for housing sites identified in prior Housing Elements proposing a minimum of 20% affordable housing units.

H1.11 Implement the SB 9
Ordinance
Continue to implement Zoning Code Chapter 27.21 (Two-
Unit Development Residential Overlay District), adopted in September 2022, which facilitates the provisions of SB 9 in single-family districts (R1).
2023 – 2031 (Ongoing)
On October 3, 2022, the City adopted a local Two-Unit Development Overlay District Ordinance (SMMC 27.21) to implement the provisions of SB 9. The City approved one SB 9 application for a lot split in 2022 that was issued building permits in 2023. One application is currently under review in 2024.

H1.12 Encourage
Development of Missing
Middle Housing
a) Evaluate residential zoning districts that have sites with potential for Missing Middle Housing (R2, R3 and R4 zones) and identify development standards that create barriers for small-scale development, including minimum lot size,
setbacks, floor area ratio, parking, and open space
requirements, and amend the Zoning Code to remove any
constraints, and maximize developable area, and increase capacity.
b) Research and evaluate policies and code amendments to allow for Missing Middle housing under SB 10 and
schedule for City Council consideration and adoption.
a) 2026
b) 2026
a) Effective January 3, 2024, streamlined review is available for small-scale housing projects up to 25 units and subject to ODS (Policy H1.8), through administrative review and approval without the need for public hearings. By 2026, staff will evaluate the identified residential zoning districts that have potential for Missing Middle Housing through a comprehensive code amendment effort.
b) In 2024, the City began researching SB 10 and will present an introduction of the bill to City Council for feedback and direction.

241 of 1487

1 2 3 4
Name of Program Objective Timeframe in H.E Status of Program Implementation Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 H1.13 Update Special Needs
Group Housing Requirements
a) Review and amend the Zoning Code to allow group
homes and residential care facilities for persons with special needs, including those who are ELI, in all residential zones, only subject to those objective standards that apply to other residential uses of the same type in the same zone in
conformance with state law.
b) Review and amend the Zoning Code definition for family, and other related regulations, to ensure consistency with State and Federal fair housing laws related to persons with disabilities. This effort may also include consideration of new definitions such as single-unit and multi-unit dwellings to accommodate various housing situations.
c) Study best practices and develop a universal design ordinance that may better address housing needs for
persons with disabilities.
a) 2025
b) 2025
c) 2027
a) This program will be implemented in 2025.
b) Staff will begin researching code best practices for consistency with Fair Housing Requirements and propose code amendments in 2025. c) Staff will research and develop a universal design ordinance for housing for persons with disabilities in 2027.

H1.14 Update Supportive
Housing Requirements
Amend the Zoning Code to be consistent with AB 2162 to
allow by-right 100% affordable housing that has 25% or 12 units of permanent supportive housing, where multi-family or mixed-use housing is permitted.
2024 Staff is developing several ordinances and amendments associated with the program, with a target to implement in 2024.

H1.15 Update Mobile Home
Parks Requirements
Amend the Zoning Code to allow mobile home parks as a
special use in all residential zones to be consistent with Government Code Section 65852.7
2025 This program will begin implementation in 2025.

H1.16 Update Farmworker
Housing Requirements
Amend the Zoning Code to define and allow farmworker
housing within the Agricultural District consistent with Government Code Section 17021.6. The City will comply
with Health and Safety Code section 17021.5.
2025 This program will begin implementation in 2025.

H1.17 Permitting and
Development Fee Review
a) Study cumulative permit fee costs for new housing
development of various sizes and use information to identify opportunities to reduce per unit permitting costs; with fee reductions for small multi-family projects being prioritized.

Present findings to the City Council with recommendations for adoption.
b) Conduct a comprehensive review and update of the fee schedule every 5-6 years, with a focus on evaluating and adjusting fees with potential barriers to housing production.

Next review will be conducted in 2027 (last fee study
completed in 2021).
a) 2025
b) 2027 (Ongoing)
a) Staff has been researching cumulative permit fee costs for new housing developments of various sizes and significantly reduced permitting costs for projects up to 25 housing units by allowing staff level review and approval. This advanced work will support implementation in 2025.
b) The City anticipates initiating its next comprehensive fee study in 2025/2026, ahead of the 2027 target.

H1.18 Increase Senior
Housing Production
Evaluate code amendments and/or policies to encourage
and support the development of senior housing, especially senior housing that serves the ELI and lower income senior housesholds, including through shared
‐
housing
arrangements, community care facilities, supportive housing, and assisted living for seniors, and make a recommendation to the City Council.
2028 This program will begin implementation in 2027.

H1.19 Ensure Adequate Water
Supply for the Development of
New Housing
a) Upon adoption of the Housing Element, provide a copy of the Element to California Water Company, Estero
Municipal Improvement District, and San Mateo Public
Works Dept, for greater awareness of affordable housing priorities and collaboration, in compliance with AB 1087. b) Support efforts by Cal Water and EMID to expand their water supplies with new water sources and develop water efficiency and conservation methods to offset demand from new development projects.
c) Pursuant to AB 1087, work with Cal Water and EMID to establish a procedure to prioritize water allocation for developments that include units set aside as affordable housing for lower income households, including affordable housing within larger, mixed-use developments and larger residential subdivisions
d) Establish a written procedure for the City to grant priority sewer service to developments with units that are affordable to lower-income households.
a) 2023
b) 2023 – 2031 (Ongoing)
c) 2023
d) 2023
a) After the updated Housing Element is adopted in 2024, a copy of the Housing Element will be shared with the California Water Company (Cal Water), Estero Municipal Improvement District (EMID), and the City's Public Works Department. b) The Public Services and Facilities Element in the City's General Plan 2040 includes 11 policies and actions that support coordination with the City's water providers to increase supply capacity, improve water efficiency in new development and increase local conservation efforts. Implementation of these policies and actions is ongoing.
c) The City continues to engage with Cal Water and EMID to ensure that housing projects are prioritized for water service allocations, with ongoing efforts to formalize the process.
d) There are currently no limitations on available sewer service capacity and all housing projects have been able to obtain sewer service as requested. A formal procedure for prioritizing sewer service for housing projects will be completed in late 2024.

H1.20 Adopt San Mateo
General Plan 2040
a) Complete the General Plan 2040 Update (GPU) process and present to the City Council for adoption. The City is committed to adopting a General Plan that will create
capacity for at least 10,000 new housing units and will increase the base densities in the 10 Study Areas by at least 25 du/ac and height limits by at least two stories.
b) Commence with rezoning Citywide, in phases, to
implement the land use map following GPU adoption.
c) The GPU public outreach and engagement process will include information on Measure Y and how it creates a
constraint on housing production.
d) The City will place an updated Measure Y ballot initiative to allow for the increased heights and densities in the adopted General Plan on the November 2024 election.

If the Measure Y ballot initiative does not pass in November 2024, present alternative plans within six months to the City Council, including a plan for rezoning, to address the
housing production constraint of Measure Y with an
emphasis on higher densities in high/highest resource areas and to add at least 1,700 units of new capacity around the City, thereby increasing the City’s RHNA buffer by at least 25%.
a) 2024
b) 2025 - 2026
c) 2023 - 2024
d) November 2024
e) May 2025, if needed
a) In summer/fall 2023, following publication of the Draft General Plan Update (GPU), the City conducted an extensive community outreach and engagement effort to gather community input, and culminated with four City Council meetings to provide final direction on the Draft GPU. The Final General Plan was published in January 2024 with City Council adoption hearings scheduled for March 2024. The GPU includes a land use map that increases housing capacity by approximately 19,700 new units by 2040, increases base densities to up to 130 du/ac and increases heights up to eight stories.
b) This program will begin implementation in 2025.
c) In addition to the extensive community outreach and engagement effort in summer/fall 2023, the City conducted a statistically valid survey of likely voters to understand voter opinion on different building heights (8, 10 and 12) that should be included in the GPU to help build community awareness and consensus around the issue, and the results were presented to the public and City Council on October 30, 2023. Staff also created a public handout discussing Measure Y and the 2040 GPU's proposed density and height limits, which is available on www.StriveSanMateo.org.
d) Following GPU adoption in March, the City will begin work on a ballot initiative to amend Measure Y, with a target to adopt a resolution in summer 2024 so that the initiative can be placed on the ballot in the November 2024 election.
e) This program will be implemented, if needed, in 2025.

H2.1 Fund Housing
Rehabilitation Efforts
a) Complete annual goals of 10 minor home repairs and 14 accessibility modifications through grants for lower-income residents, targeting ELI households where appropriate.
b) Provide home rehabilitation loans for lower-income residents up to a total of approximately $500,000 available. c) Affirmatively market the availability of these funds to both homeowners and renters to increase awareness. Marketing efforts include translating flyers into Spanish and distributing flyers to various locations throughout the City, including libraries, senior and community centers and non-profit
agencies. Outreach will be conducted biannually.
2023 - 2031 (Annually, by
June 30)
In 2023: 10 minor home repairs projects were completed and 2 home rehabilitation projects are actively ongoing.

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Name of Program Objective Timeframe in H.E Status of Program Implementation Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 H2.2 Support Retention of
Existing Lower Income Units
a) Bridgepointe Condominiums affordability requirements for 59 affordable units expire in 2027, out of which 24 are very low-income units (35 are at 120% AMI). Belmont
Building affordability requirements for 6 units expire in 2032.

The rental property is owned by a for-profit entity, potential for loss of units is high.
b) Proactively coordinate with owners to preserve the 24 very low-income units as affordable, including identifying potential funding sources, advertise conversion units to non- profits, conduct tenant outreach and education, add a
displacement preference for new affordable housing for
people displaced, including those displaced as a result of conversion. Outreach and negotiate with owners for
affordability extensions. Provide noticing to tenants and affected public entities in accordance with Gov. Code, § 65863.10, 65863.11, and 65863.13
a) 2026 (Bridgepointe
Condominiums)
b) 2031 (Belmont Building)
a) The Bridgepointe Condominiums were identified as a priority to address.

Their affordability requirements for 24 low-income units will expire in 2027.

Options such as using funding sources to purchase or advertising conversion units to non-profits are being explored.
b) Belmont Building affordability requirements for 6 low-income units expire in 2032. Staff will proactively reach out to owners to extend affordability and mitigate displacement.

H2.3 Increase Energy and
Water Efficiency in Existing
Units
a) Complete seven weatherization upgrades through grants for lower-income residents annually, targeting ELI
households when appropriate.
b) Implement energy-efficiency and electrification strategies identified in the City's Climate Action Plan through updates to the City’s Reach Codes as part of the building permit review process. Outreach will be conducted biannually.
a) 2023 - 2031 (Annually, by
June 30)
b) Reach codes are updated
every three years.
a) In 2023: Zero weatherization upgrades were completed. Staff is searching for a new non-profit partner for weatherization upgrades as the previous partner has dropped the service.
b) The City's updated Reach Codes went into effect, requiring any remodel projects to include energy and water efficiency measures.

H2.4 Implement Capital
Improvements in Lower-
Resourced Neighborhoods
a) Use available CDBG funds to make CIP improvements
in identified Equity Priority Neighborhoods (including North Central and North Shoreview neighborhoods). Potential
improvements may include: street work, crosswalk
implementation, ADA ramp installation, striping, sidewalk improvements, traffic signal replacement, and other
pedestrian/bicycle enhancements. Allocate available CDBG funds on an annual basis.
b) Implement Bike Master Plan and Pedestrian Master Plan through capital improvements in Equity Priority
Neighborhoods.
c) Conduct proactive public outreach to identify and
prioritize capital improvements that best align with a
neighborhood’s most critical needs.
d) Apply for funding biannually, consistent with CIP efforts and CDBG to pursue at least eight improvement projects
over eight years in Equity Priority Areas.
2023 - 2031 (Annually)
a) In 2023: Street repair and pedestrian safety projects were completed in the lower resource neighborhoods of North Central and North Shoreview. b) The City continues to implement the Bike Master Plan and Pedestrian Master Plan through capital improvements through the Public Works Department. c) The City conducts annual public outreach through the Public Works Department and through the Housing Division Community Needs Hearing to identify critical neighborhood needs.
d) The City continues to use CDBG funding and other sources to complete CIP improvement projects in Equity Priority Areas.

H2.5 Promote Housing
Resilience
Provide Flood Improvements for the North Shoreview
neighborhood through the levee project with Public Works. 2023 The North Shoreview levee project was completed by the Department of Public Works on June 28, 2023.

H2.6 Require Replacement
Units
a) Conduct a study to determine whether the City should update the zoning ordinance and other policies to
permanently require replacement of units (beyond Housing Crisis Act sunset date of 2034). This action must be
completed within three years from the start of the planning period.
b) The City will require replacement housing units subject to the requirements of Government Code Section 65915(c)(3), when a development project or demolition occurs on sites with existing residential units that are restricted or have been occupied by a lower income household in the past five years. a) 2026
b) Effective Immediately
a) The City will conduct a study by 2026 to determine whether an ordinance and policies should be adopted to require replacement units beyond the Housing Crisis Act sunset date of 2034.
b) The City currently requires all applicable development projects to provide replacement housing units in accordance with Government Code Section 65915(c)(3).

H3.1 Prevent Homelessness
a) Allocate PLHA, CDBG, and other local funds to support homeless prevention these may include the following
programs: LifeMoves Rapid Rehousing Program, Safe
Harbor Shelter, Vendome Hotel supportive units, LifeMoves First Step for Housing program, HIP Housing home sharing and Montara assisted units for the formerly homeless.
b) Support the County in its efforts to convert the Stone Villa Hotel into a 44-room temporary shelter space as part of the Project Homekey programs.
a) 2023 – 2031 (Annually by
June 30)
b) 2023 – 2031 (Annually)
a) In 2023: 304 individuals were served by City programs to prevent homelessness.
b) The City continues to support the County effort to convert the Stone Villa Hotel into new temporary shelter space via the Project Homekey Program.

H3.2 Investigate Fair Housing
Cases
As CDBG funding permits, achieve the Annual Fair Housing Activity Goals:
• Investigate all complaint cases;
• Provide consultation to at least 30 individuals;
• Increase public Education/Outreach to tenants, landlords, and housing professionals by 50% over eight years (from 26 to at least 40 persons); and
• Provide legal assistance to at least 185 renters.

These numbers are subject to change based on funding
availability.
2023 - 2031 (Annually by
June 30)
In 2023: 11 fair housing case clients were served. 145 individuals received public education/outreach and 36 individuals received consultations.

H3.3 Evaluate Housing
Revenue Sources
a) Conduct a feasibility study on increasing the fee to generate additional housing funds gathered from commercial development, analyze the study, conduct community
outreach and make a recommendation to the City Council.

Proceed as directed by Council.
b) Examine other possible revenue sources and bring the proposals before City Council for consideration. Actively track available funding opportunities and coordinate with City partners, including non-profit housing developers on how best to leverage these resources.
a) 2026
b) 2023 - 2031 (Annually, as
opportunities become
available)
a) The City has joined with a County-wide effort to conduct a nexus study to adjust commercial linkage fee ratios.
b) New funding sources from the County and State continue to be released that are potential sources of affordable housing. Staff is exploring the FY24-25 Measure K funding to supplement construction for supportive housing.

H3.4 Expand Tenant
Protections
a) Extend AB1482 provisions to require tenant relocation payments for No Fault evictions for those with tenure less than one year.
b) Make recommendations to the City Council for
establishing tenant protection policies that include the requirement of documentation from landlords who use the substantial remodel exemption to evict tenants and a Right to Return policy for tenants displaced from homes due to demolition or substantial remodels.
c) Amend the Code to strengthen enforcement penalty
structure to aid in protecting tenants from unsafe or
substandard units.
d) Conduct outreach to the community on a biannual basis. a) 2024
b) 2026
c) 2024
d) 2023 – 2031 (Bi-annually)
a) Staff are researching code best practices and will propose amendments for tenant relocation protections in Fall 2024.
b) Staff will make recommendations to establish tenant protection policies who use substantial remodel exemptions to evict tenants and a Right to Return policy in 2026.
c) Staff are researching code best practices and will propose amendments to strengthen enforcement penalties in unsafe or substandard units in 2024. d) Staff continues to conduct outreach to the community on a biannual basis.

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Name of Program Objective Timeframe in H.E Status of Program Implementation Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 H3.5 Study the Creation of
Below Market Rate Set Asides
Conduct a best practices research on prioritization of
households with special needs, extremely low-income
households and large families. Analyze the data, conduct community outreach and make recommendations to the City Council. Proceed as directed by Council.
2026
The City hired a consultant, Economic Planning Systems, in 2023 to study feasibility of establishing priority allocation for certain types of BMR units. The City may phase this effort to look at priority allocation for households with special needs or extremely low income households.

H3.6 Monitor Rental Rates and
Displacement.
a) Research options and best practices for a rental registry list, including determining necessary financial and human resources needed to establish such a program. Make
recommendations to City Council.
b) Collaborate with regional partners, such as 21 Elements or ABAG, to develop ways to monitor rental rates, evictions and displacement citywide and countywide to track trends and use the information to guide policy priorities.
a) 2024
b) 2024-2031 (Ongoing)
a) Staff will research best practices and options and look at collaborating with regional partners to monitor rental rates, evictions, and displacement. b) Staff continues to collaborate with county-wide efforts to enact Housing Element policies, which will include monitoring rental rates, evictions, and displacement.

H3.7 Evaluate Opportunities
for Expanding Homeless
Shelters
a) Study best practices for expansion of homeless shelter sites. Analyze the data, conduct community outreach and recommendations to City Council. Proceed as directed by Council.
b) Regularly evaluate zoning to ensure enough sites are available to accommodate the capacity for emergency
shelters, based on the countywide Point in Time Homeless Count.
c) Review and amend the zoning code to allow emergency shelters in C2, C3, and other zones as needed to ensure there is sufficient capacity on available sites to
accommodate the need for emergency shelter as identified in the most recent point-in-time count conducted before the start of the planning period, and to amend the definition of emergency shelters, in compliance with Government Code
65583.
d) Review and amend the zoning code as needed to
comply with Government Code 65583 including to remove
the 300 feet buffer from a single-family dwelling, clarify that emergency shelters are not required to be more than 300 feet apart and adopt objective development standards, such as parking for shelters in compliance with Government Code Section 65583(a)(4)(A)(ii).
e) Review and amend the zoning code as needed to
comply with requirements of AB 101 (2019) to allow Low
Barrier Navigation Centers (LBNC) as a permitted use by right in areas zoned for mixed use and nonresidential zones permitting (by right or through a Special Use Permit)
multifamily uses if it meets specific requirements in
Government Code sections 65660 – 65668.
a) 2023 – 2031 (Ongoing)
b) 2023 – 2031 (Ongoing)
c) 2023-2031 (Ongoing)
d) 2025
e) 2025
a) San Mateo continues to be involved with the County Continuum of Care to provide programs to serve the San Mateo homeless population. b) San Mateo continues to participate in the County Point in Time Homeless County and will regularly evaluate zoning to ensure sites are able to accommodate emergency shelter capacity.
c) Staff will review and amend zoning code to allow emergency shelters in C2, C3, and other zones based on the growing need for shelter capacity based on the Point in Time Count.
d) Staff will begin researching code best practices and propose code amendments regarding the shelter buffer zone in 2025.
e) Staff will begin researching code best practices and propose code amendments regarding Low Barrier Navigation Centers in 2025.

H4.1 Update the Housing
Webpage
a) Maintain and improve webpage with comprehensive
housing related information and materials, and coordinate with providers to market programs electronically.
b) Provide information in multiple languages using common terms.
c) Ensure that households with disproportionate housing needs are targeted for information through, for example, liaisons with service providers. Ensure targeting reaches ELI households.
2023 - 2031 (Ongoing) The City continues to update its webpages with guides, plans, and other worksheets on new housing law, housing programs, and other resources.

H4.2 Support a Countywide
Below Market Rate Unit
Waitlist
Support the county’s online portal for a BMR waitlist by transitioning the City’s BMR waiting list to the Countywide system. In addition, work with BMR property
managers/owners to advertise available BMR units on the County’s portal to streamline the rental process.
2023 (Transition to
Countywide portal)
(and ongoing)
The City merged its affordable rental properties list onto the centralized county BMR website in Jan 2023 and will continue to add new rental BMR properties as they finish construction.

H4.3 Expand Community
Education and Outreach
a) Housing initiatives and policy implementation shall be supported with robust and adaptive community engagement including surveys, workshops, pop-up events, mailings, and targeted outreach to underrepresented groups. Outreach will be conducted biannually.
b) Continue to participate in Countywide (and other) efforts to share best practices on equitable engagement and
inclusive outreach. (e.g. Home For All “Learning Network”) c) Actively provide information on County and State
resources for tenant protections, discriminatory practices (CC&R's), special needs groups, and households with
disproportionate housing needs.
2023 - 2031 (Ongoing)
The City continues to hold annual Housing and Community Needs Assessments in the month of September to invite community stakeholders and residents to voice their needs and concerns to staff and the Community Relations Commission, which guide funding distribution for the CDBG and PLHA programs.

H4.4 Enable Affirmative
Marketing
a) Research other best practices to create an affirmative marketing strategy and implement strategies in San Mateo where appropriate.
b) Include farm workers, ELI households. people with
disabilities, and households with disproportionate housing needs, as new target group where appropriate.
c) Include Spanish marketing materials and ensure
bilingual interpretation services are available. The City will conduct outreach and education on a project-by-project
basis and will ensure that programs target/affirmatively market to households in impacted neighborhoods, including North Central and North Shoreview, among others.
d) Partner with community intermediaries to conduct
outreach activities on social media and in the community in Spanish and English language, including events with a
significant representation of hard to reach communities such as the annual Dia de los Muertos and Eggstravaganza
events (minimum of two per year) as well as pop-ups in the North Central and North Shoreview neighborhoods,
(minimum of two per year)
a) 2026
b) 2023 – 2031 (Ongoing)
c) 2023 – 2031 (Ongoing)
d) 2023 - 2031 (Annually)
a) The City will research best practices to create an affirmative marketing strategy in 2026.
b) In Winter 2023, affirmative marketing began for the Kiku Crossing affordable housing project as focused outreach was used for units aimed at special needs populations through County and local nonprofit organizations. c) In 2023, affirmative marketing for the Kiku Crossing affordable housing project included Spanish language materials and targeted outreach. d) The City continues to maintain a presence conducting outreach in English and Spanish through community events in hard to reach communities and pop- ups in the North Central and North Shoreview neighborhoods.

H4.5 Conduct Outreach to
Sites Inventory Property
Owners
Conduct focused outreach to the owners of properties on the Sites Inventory to determine interest in redevelopment or construction of additional housing on their site(s). The outreach shall include provision of information on the City’s development process, fees, and timelines associated with such applications. Initial outreach shall be conducted within two years of adoption and shall be ongoing throughout the housing cycle.
2023 – 2031 (Ongoing)
Staff will conduct initial outreach to property owners listed in the Sites Inventory in 2024-2025. Staff continues to engage with property owners who have projects in the pipeline or anticipate submitting projects in 2024.

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Name of Program Objective Timeframe in H.E Status of Program Implementation Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 H5.1.1: Adjust the city's Below
Market Rate (inclusionary)
program
a) Perform a feasibility analysis to redesign the program to allow a menu of options, including targeting of units for ELI households.
b) Ensure analysis includes review of housing for
households with disproportionate housing needs, along with income levels.
a) Fall 2023
b) Spring 2024
a) The City has joined with a County-wide effort to conduct a nexus study on inclusionary programs to adjust affordability requirements. The City anticipates presenting policy options and recommendations for updating the inclusionary ordinance to City Council in 2024.
b) The nexus study process continues to be underway, with analysis for disproportionate housing needs with income levels.

H5.1.2: Participate in a
regional down payment
assistance program
a) Affirmatively market down payment assistance to 1,000 households with disproportionate housing needs, including persons with disabilities, single parents and Hispanic
households;
b) Provide down payment assistance to 30 total
households;
c) Provide homebuyer education to 200 households.
d) Assist households in proportion to the demographic profile of the City
In addition, the City will work with other jurisdictions to conduct outreach and education. Ensure that programs
target/affirmatively market to households in impacted
neighborhoods, including North Central and North
Shoreview, among others.

Ongoing by 2031
a) The City has joined with a County-wide effort with the San Mateo County Housing Endowment and Regional Trust to provide downpayment assistance for first-time homebuyers. The City will continue to advertise the program to prospective applicants with affirmative marketing strategies. b) The County-wide effort continues to be underway and San Mateo will continue to support the County to meet its goal of providing assistance to 30 total households.
c) The County-wide effort continues to be underway and San Mateo will continue to support the county to meet its goal of providing education to 200 total households.
d) The County-wide effort continues to be underway and San Mateo will continue to work towards its goal to affirmatively market the program to impacted neighborhoods.H5.1.3: Explore the potential to
implement a loan program for
ADU construction if a City-
funded ADU loan program is
determined to be infeasible.

Explore the potential for a city ADU loan program. Work with 21 Elements collaborative to design a regional loan
forgiveness program. Ensure that programs
target/affirmatively market to households in impacted
neighborhoods, including North Central and North
Shoreview, among others. To enhance mobility in high
resource/areas of affluence, additionally target to areas outside lower resource areas. Target those with
disproportionate housing needs, with a goal to reach 5
households annually.

Provide support to 21 Elements in the development of a
countywide ADU forgivable loan program.

Promote the use of Housing Choice Vouchers (HCVs) for
ADUs to allow lower income households the opportunity to live in lower density neighborhoods. The goal is to reach 20% of households with HCVs annually. Provide targeted
outreach to ELI households.
2024 - 2026
The City has joined with a County-wide effort to establish an ADU center to support additional ADU construction and support the county-wide effort to create a forgivable loan program and a program for housing choice voucher holders to move to areas of high opportunity, such as through an ADU program.

H5.2.1: Add more city
supported housing with
affordability restrictions in
moderate and high/highest
resource areas and areas of
affluence.

Require developers to affirmatively market approximately 1,000 units to those with disproportionate housing needs over the eight-year period (approximately 125 annually) by preparing and submitting and affirmative marketing plan to the City for review. The affirmative marketing plan shall include items, such as advertising (print, social media) and targeting community organizations that serve households with disproportionate housing needs Ensure that programs target/affirmatively market to households with
disproportionate housing needs. Of the 1,000 affordable units, approximately 15% will benefit special needs and/or ELI households.

Continue to update the housing inventory and provide on the City’s website so that developers can target housing in moderate and high opportunity areas, as well as areas of affluence.
2023 - 2031 (Annually)
In Winter 2023, affirmative marketing began for the Kiku Crossing affordable housing project as focused outreach was used for units aimed at special needs populations through County and local nonprofit organizations. Kiku Crossing is located in a Highest Resource area defined by the 2024 TCAC Opportunity maps.

H5.2.2: Incentivize developers
through direct subsidies, fee
waivers, and/or density
bonuses, to increase
accessibility requirements
beyond the federal
requirement
a) Update development agreements for projects with City subsidies to include additional accessible units.
b) Update the City’s Inclusionary Housing Policy to require projects that receive City subsidies to increase the
percentage of units that meet accessibility requirements. c) The City will proactively outreach to developers
throughout the planning period every two years, beginning in 2024.
a) 2023 - 2031 (Ongoing)
b) 2026
c) 2024 - 2031 (Bi-annually)
a) The Kiku Crossing affordable housing project, which is set to open in March 2024, contains 22 units for formerly homeless households and 8 units for individuals with intellectual and developmental disabilities. b) The City anticipates presenting policy options and recommendations for updating the inclusionary ordinance to City Council in 2024. c) The City will continue to proactively outreach to developers to increase accessibility for upcoming projects, such as Bespoke.

H5.2.3: Prioritize city funding
proposals for city funded
affordable housing that are
committed to serving hard to
serve residents
Conduct a best practices review and develop a program to prioritize City funding for housing projects. 2028
In 2023, the City prioritized Permanent Local Housing Allocation funding for the St James Supportive Housing project which will prove all of its units to ELI households to transition-aged former foster youth. Staff will conduct a review of best practices for funding prioritization and develop a program for City Council adoption by 2028.

H5.2.4: Develop a housing
mobility program that provides
support to tenants seeking to
move to high opportunity areas
There will be a 20% increase in the number of voucher
holders, including ELI households, moving to areas of high opportunity.
2023 - 2031 (Ongoing)
Staff will collaborate with the County to develop a housing mobility program to explore options for housing choice voucher holders to move to areas of high opportunity, such as through an ADU program.

H5.3.1: Conduct an area plan
for the North Shoreview and
North Central neighborhoods
Prepare an area plan for North Shoreview and North Central neighborhoods. 2029
Staff will continue to complete this plan through the larger General Plan Update.

The development of North Shoreview and North Central area plans are expected to be completed in 2029 in accordance with the Complete Streets Plan of the Public Works Department.

H5.3.2: Continue to fund
minor home repairs,
infrastructure improvements
and public services
Complete annual goals of 10 minor home repairs and 14
accessibility modifications through grants for low-income residents. Provide home rehabilitation loans for low- income homeowners and landlords making accessibility
modifications. Fund service providers that target households with disproportionate housing needs, including services for seniors, ELI households, youth, and fair housing.

Affirmatively market to Hispanic and single female heads of household biannually; ensure that programs
target/affirmatively market to households in impacted
neighborhoods, including North Central and North
Shoreview, among others.

Bi-annually apply for funding through the CIP or other
actions to address infrastructure needs.
2023 - 2031 (Annually) In 2023: 10 minor home repairs projects were completed and 2 home rehabilitation projects are actively ongoing.

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Name of Program Objective Timeframe in H.E Status of Program Implementation Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 H5.3.3: Monitor affordable
housing projects that are at
risk of conversion to market
rate.

Bridgepointe Condominiums affordability requirements for 59 affordable units expire in 2027, out of which 24 are very low- income units (35 are at 120% AMI). Belmont Building
affordability requirements for 6 units expire in 2032. The rental property is owned by a for-profit entity, potential for loss of units is high.

Proactively coordinate with owners to preserve the 24 very low- income units as affordable, including identifying
potential funding sources, advertise conversion units to non- profits, provide conduct tenant outreach and education, add a displacement preference for new affordable housing for people displaced, including those displaced as a result of conversion. Provide noticing to tenants and affected public entities in accordance with Gov. Code, § 65863.10,
65863.11, and 65863.13 Outreach and negotiate with
owners for affordability extensions beginning at least two years prior to the affordability expiration date.
a) 2027 (Bridgepointe
Condominiums)
b) 2032 (Belmont Building)
a) The Bridgepointe Condominiums were identified as a priority to address.

Their affordability requirements for 24 low-income units will expire in 2027.

Options such as using funding sources to purchase or advertising conversion units to non-profits are being explored.
b) Belmont Building affordability requirements for 6 low-income units expire in 2032. Staff will proactively reach out to owners to extend affordability and mitigate displacement.

H5.4.1: Establish tenant
protections in local ordinance
to extend measures of AB1482
a) Extend AB1482 provisions to require tenant relocation payments for No Fault evictions for those with tenure less than one year.
b) Make recommendations to the City Council for
establishing tenant protection policies that include the requirement of documentation from landlords who use the substantial remodel exemption to evict tenants and a Right to Return policy for tenants displaced from homes due to demolition or substantial remodels.
c) Amend the Code to strengthen enforcement penalty
structure to aid in protecting tenants from unsafe or
substandard units.
a) 2024
b) 2026
c) 2024
a) Staff are researching code best practices and will propose amendments for tenant relocation protections in Fall 2024 or early 2025. b) Staff will make recommendations to establish tenant protection policies who use substantial remodel exemptions to evict tenants and a Right to Return policy in 2026.
c) Staff are researching code best practices and will propose amendments to strengthen enforcement penalties in unsafe or substandard units in late 2024/ early 2025.

H5.4.2: Partner with Project
Sentinel to perform fair
housing training for landlords
and tenants
Provide annual funding to Project Sentinel to provide training every two years in the Spring, targeting 200 landlords each training. Awareness will be increased through outreach to landlords.
2023 - 2031 (Annually) In 2023: Project Sentinel served 145 individuals in San Mateo through outreach efforts.

H5.4.3: Create a webpage
specific to fair housing
Provide information on the City's website about housing discrimination, laws, and protections. Fair Housing resources will also be advertised on the City’s eNewsletter, social media channels and various email listservs. Update the
webpage every two years, along with other transparency
updates.
2024 - 2031 (Bi-annually)
The City maintains a Fair Housing webpage at
https://www.cityofsanmateo.org/3764/Fair-Housing-Assessment and will continue to update it with new resources for residences experiencing discrimination while evaluating it for accessibility to resolve any gaps.

H5.4.4: All multi-family
residential developments
contain signage in both
English and Spanish to explain
the right to request reasonable
accommodations for persons
with disabilities.

Initially, create ongoing condition of approval to ensure both BMR and all-affordable developments contain this
information. Explore options for recording against the
property and/or including in the affordable housing
agreement.
2024 - 2026
The City continues to monitor multi-family developments to ensure appropriate signage for fair housing is displayed in common areas and information is provided in English and Spanish. The City has joined a County-wide BMR workgroup in to review best practices for BMR management in 2024.

H5.4.5: Ensure that future
improvements in
disadvantaged communities
will not produce a net loss of
affordable housing or the
displacement of residents
In conjunction with Policies 5.3.1, and 5.3.2, when
improvements are planned to be made to disadvantaged
communities, conduct a review of existing housing units that may be impacted by such improvements. Consistent with
H2.6, ensure units that may be lost are replaced.
2027
Staff will continue to complete this policy through the larger General Plan Update and implementation of state laws that requires no-net loss of units. The development of a no-net-loss affordable housing policy is expected to be completed in 2027.

General Comments

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Jurisdiction San Mateo ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 01/31/2023 - 01/31/2031
Description of Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of Commercial
Development Bonus
Commercial Development Bonus
Date Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020

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Jurisdiction San Mateo ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 01/31/2023 - 01/31/2031
The description should adequately document how each
unit complies with subsection (c) of Government Code
Section 65583.1+.

For detailed reporting requirements, see the chcklist
here:

Extremely Low-
Income+ Very Low-Income+ Low-Income+ TOTAL UNITS+
Extremely Low-
Income+
Very Low-
Income+ Low-Income+ TOTAL UNITS+
https://www.hcd.ca.gov/community-
development/docs/adequate-sites-checklist.pdf
Rehabilitation Activity
Preservation of Units At-Risk
Acquisition of Units
Mobilehome Park Preservation
Total Units by Income
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at [email protected] and we will unlock the form which enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020

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Jurisdiction San Mateo ANNUAL ELEMENT PROGRESS REPORT
Note: "+" indicates
an optional field
Reporting Period 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 01/31/2023 - 01/31/2031
Notes
2 3 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(2 to 4,5+)
Tenure
R=Renter
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate- Income
Deed Restricted
Moderate- Income
Non Deed
Restricted
Above
Moderate-
Income
Total Moderate Income Units
Converted from Above
Moderate
Date Converted Notes
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding information to this table, please ensure housing developments meet the requirements described in Government Code 65400.2(b). 5 Project Identifier Unit Types
1 4
Affordability by Household Incomes After Conversion Units credited toward Moderate Income RHNA

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Jurisdiction San Mateo
Reporting Period 2023 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 01/31/2023 - 01/31/2031 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Realistic Capacity
Identified in the
Housing Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation
formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting year.

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Jurisdiction San Mateo Note: "+" indicates an optional field Reporting Period 2023 (Jan. 1 - Dec. 31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
034-191-110 308 5th Avenue Vacant 0 Surplus Land 0.35 Existing City parking lot 034-179-050 E 4th Avenue/S Railroad Avenue Vacant 0 Surplus Land 0.25 Existing City parking lot - received
proposal for a 100% affordable
housing project (60 units - Bespoke)
034-179-060 E 4th Avenue/S Railroad Avenue Vacant 0 Surplus Land 0.13 Existing City parking lot - received
proposal for a 100% affordable
housing project (60 units - Bespoke)
NOTE: This table must contain an invenory of ALL
surplus/excess lands the reporting jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
For San Mateo County jurisdictions, please format the APN's as follows:999-999-999

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Jurisdiction San Mateo ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 01/31/2023 - 01/31/2031
Project Type Date
Units (Beds/Student
Capacity) Granted
Density Bonus
Notes
2 3 5 6
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Unit Category
(SH - Student Housing) Date Very Low- Income
Deed Restricted
Very Low- Income
Non Deed
Restricted
Low- Income Deed
Restricted
Low- Income Non
Deed Restricted
Moderate- Income
Deed Restricted
Moderate- Income
Non Deed
Restricted
Above
Moderate-
Income
Total Additional Beds
Created Due to Density
Bonus
Notes
Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS ONLY. This
table only needs to be completed if there were student housing projects WITH a density bonus approved pursuant to
Government Code65915(b)(1)(F)
Annual Progress Report January 2020

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Jurisdiction San Mateo ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2023 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 01/31/2023 - 01/31/2031
No
Table K
Tenent Preference Policy
Local governments are required to inform HCD about any local tenant preference ordinance the local government maintains when the jurisdiction submits their annual progress report on housing approvals and production, per Government Code 7061 (SB 649, 2022, Cortese).

Effective January 1, 2023, local governments adopting a tenant preference are required to create a webpage on their internet website containing authorizing local ordinance and supporting materials, no more than 90 days after the ordinance becomes operational.

Does the Jurisdiction have a local tenant preference policy? If the jurisdiction has a local tenant preference policy, provide a link to the jurisdiction's webpage on their internet website containing authorizing local ordinance and supporting materials.

Notes

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Jurisdiction San Mateo
Reporting Year 2023 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto-populated based on amounts entered in rows 15-26.

Task $ Amount Awarded $ Cumulative Reimbursement
Requested
Other
Funding Notes
Housing Element (Plan Update) $150,000.00 $127,053.79
Local
General
Fund
The Housing Element 6th Cycle was adopted by City
Council in 2023 and updated following comments
received from HCD and the community.

Automated/Mechanical Parking
Study and Code Amendment $30,000.00 $0.00
Local
General
Fund
City Council adopted interim parking standards in
2022. The City does not plan to utilize the LEAP
grant for this effort and will provide an updated
application withdrawing this project.

Density Bonus, Community
Benefits, and Minimum Residential
Requirements in Mixed Uses
$200,000.00 $1,753.41
Local
General
Fund
In 2023, the City initiated research with a consultant
to evaluate existing Density Bonus/Community
Benefits program, inclusionary family housing (two-
and three-bedroom affordable housing units), and
minimum residential requirements in mixed-use
projects. The City anticipates presenting policy
options and recommendations to City Council in
2024.

SB 9 Code Amendment $62,000.00 $29,512.29
Local
General
Fund
In 2022, the City adopted a local Two-Unit
Development Overlay District Ordinance (SMMC

27.21) to implement the provisions of SB 9. One
application was received in 2023 and is currently
under review. The City plans to provide a three-year
update on the ordinance in 2025.

SB 10 Code Amendment $58,000.00 $0.00
Local
General
Fund
No work in 2023. In 2024, the City began
researching SB 10 and will present an introduction
of the bill to City Council for feedback and direction.

Downtown Parking Study and
Code Amendment $0.00 $0.00 None Project withdrawn
Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2) Current Year
Deed Restricted 0
Non-Deed Restricted 1
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 3
1 5
Current Year
Deed Restricted 0
Non-Deed Restricted 25
Deed Restricted 0
Non-Deed Restricted 24
Deed Restricted 0
Non-Deed Restricted 25
24 98
Current Year
Deed Restricted 3
Non-Deed Restricted 20
Deed Restricted 5
Non-Deed Restricted 19
Deed Restricted 0
Non-Deed Restricted 19
56 122

ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
In Progress
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable.
$500,000.00
Task Status
In Progress
In Progress
Other (Please Specify in Notes)
Other (Please Specify in Notes)
In Progress
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low

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Housing Successor Annual Report 2022-23
9 8
5 6

CITY OF SAN MATEO

HOUSING SUCCESSOR ANNUAL REPORT
LOW- AND MODERATE-INCOME HOUSING ASSET FUND 255
FISCAL YEAR 2022-2023
This Housing Successor Annual Report (Report) for the Fund 255 Low- and Moderate-Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the City of San Mateo acting as the Housing Successor of the former Redevelopment Agency of the City of San Mateo under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (the Dissolution Law) for the fiscal year July 1, 2022 to June 30, 2023.

An independent financial audit of the Low- and Moderate-Income Housing Asset Fund for Fiscal Year 2022-23 was prepared by The Pun Group as part of the annual audit for the City of San Mateo. The financial audit was submitted and approved by the City Council at its December 5, 2022 meeting and is separate from this annual summary report. The following Report conforms with Sections 1 through 11, of Section 34176.1(f) of the Dissolution Law:
1)Amount Deposited into LMIHAF: Total amount of funds deposited into the LMIHAF during the Fiscal Year.

Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited. Also, loan repayments received to meet former obligations to the Supplemental Educational Revenue Augmentation Fund (SERAF) are listed separately.

Amount Deposited in LMIHAF
Interest Earnings -$56,095
Misc Revenue -$12,904
Loan Repayment Principal $65,488
Loan Repayment Interest $342,704
Sub total Revenues $339,193
Deposits Received for the Payment of ROPS Enforceable Obligations N/A SERAF Repayments N/A
Total LMIHAF Deposits 7/1/22 to 6/30/23 $339,193
2)Ending Balance of LMIHAF: Statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited.

Fund Balance
Fund Balance 6/30/23 $2,482,334
Funds Reserved for ROPS Obligations N/A
Funds Reserved for Executed Housing Commitments* $2,560,924 Unrestricted Fund Balance 6/30/23 -$78,590*

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Housing Successor Annual Report 2022-23
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5 6
*Existing executed housing commitments include the Kiku Crossing project. Although the unrestricted fund balance is currently negative, it is anticipated that the Kiku Crossing project will not utilize all the funds reserved. The project will also repay all remaining funds to the City. 3)Statutory Value of Assets Owned by Housing Successor: The statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts.

Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former redevelopment agency prior to 2/1/2012 as listed on the housing asset transfer schedule approved by the Department of Finance (DOF) and the purchase price of properties purchased by the Housing Successor after 2/1/2012.

Assets
Value of Real Property 87,120
Value of Loans and Grants Receivable 26,168,141
Statutory Value of Housing Assets 26,255,261
4)Description of Expenditures from LMIHAF: Description of the expenditures made from the LMIHAF during the Fiscal Year by category. Also describe any loan repayments of former RDA to City in accordance with Section 34191.4 (b)(3)(A)
Expenditures
Monitoring/Preserving Existing Affordable Housing /Administration* $96,189 Homeless Prevention/Rapid Rehousing N/A
Affordable Housing Development $2,850,000
Total LMIHAF Expenditures 7/1/2022 to 6/30/2023 $2,946,189

Cap on Administration Expenditures
(2% of Statutory Value of Assets or $223,400 whichever is greater)* $525,105 *Administrative expenses are well below the cap of $525,105. 5)Description of Transfers: Description of transfers, if any, to another housing successor agency made in previous fiscal year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used.

The Housing Successor did not make any LMIHAF transfers to other housing successor(s) under Section 34176.1(c)(2) during the Fiscal Year.
6)Project Descriptions: Description of any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project.

The Housing Successor has no further ROPS obligations or funds held. 7)Description of Outstanding Obligations under Section 33413: Describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution

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Housing Successor Annual Report 2022-23
9 8
5 6
of the former redevelopment agency as of February 1, 2012, along with the Housing Successor’s progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor plans to meet unmet obligations, if any.

There are no unmet inclusionary or replacement housing obligations from the former redevelopment agency.

8)Properties Acquired: The following provides a status update on the project(s) for properties that have been acquired by the Housing Successor using LMIHAF on or after February 1, 2012:

No properties have been acquired by the Housing Successor after February 1, 2012. 9)Income Targeting: Description of LMIHAF expenditures by income restriction for a five-year period, with the time period beginning January 1, 2014. Cumulative thresholds must be met every five years starting in 2019.

Development of housing funded by the LMIHAF must be affordable to and occupied by households earning 80% or less of the Area Median Income (AMI) per 34176.1 (a)(3). •A minimum of 30% of the funds must be expended on the housing development for households earning 30% or less of AMI.
•A maximum of 20% of the funds may be expended on housing development for households earning between 60-80% of AMI.

Five Year Income Targeting for LMIHAF Expenditures
Five Year Period 30% AMI 31-60% AMI 61-80% AMI Total
7/1/19 to 6/30/20 0 0 0 0
7/1/20 to 6/30/21 0 0 0 0
7/1/21 to 6/30/22 35 0 0 35
7/1/22 to 6/30/23 0 0 0 0
7/1/23 to 6/30/24
Total 35 0 0 35
% of Total 100%
Minimum Required % 30%
Maximum Allowed % 20%
•Senior Housing: Percentage of deed-restricted senior rental housing units assisted individually or jointly by the Housing Successor, its former Redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of all deed-restricted rental housing assisted within the same time period cannot exceed 50%.

Senior Housing Assisted by City of San Mateo RDA or LMIHAF No of Senior Rental Units Assisted July 2011 to June 2023 0 No of Total Rental Units Assisted July 2011 to June 2023 237 Senior Housing Percentage 0%

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5 6
•Excess Surplus: This section provides the amount of excess surplus in the LMIHAF, if any, the length of time that the Housing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus.

Excess Surplus is defined in Section 34176.1(d) as an unencumbered amount in the account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the Housing Successor’s preceding four fiscal years, whichever is greater.

Excess Surplus
LMIHAF Deposits 7/1/2018- 6/30/2019 554,309
LMIHAF Deposits 7/1/2019- 6/30/2020 527,741
LMIHAF Deposits 7/1/2020 - 6/30/2021 545,103
LMIHAF Deposits 7/1/2021 – 6/30/2022 346,455
LMIHAF Deposits 7/1/2022 – 6/30/2023 339,193
Total Deposits 2,312,802

Greater of $1,000,000 or previous four Fiscal Years Deposits 2,312,802 Available Unencumbered Balance 6/30/23 -$78,590
Excess Surplus 0
As of 6/30/23 there is no Excess Surplus.
•Inventory of Homeownership Units: Number of ownership units assisted with LMIHAF with covenants, the number of those lost to portfolio and the reason, and the amount of funds returned to fund as a result. Identify if an outside agency is contracted to manage ownership portfolio.

Ownership Units
Number of Units 74
Number of Units Lost to Portfolio 2
Reason: Affordability restriction expired, units were sold to open market
Funds returned to LMIHAF 0
Housing Successor did not contract out management of ownership units to outside entity.

258 of 1487

CITY OF SAN MATEO
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1 4

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 10 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 24-8479 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: March 18, 2024
SUBJECT:

Wastewater Treatment Plant Immediate Action Project, Package II – Appropriation and Amendment RECOMMENDATION:

Adopt a Resolution to authorize an appropriation of funds in the amount of $349,000 from the Sewer Fund Reserves for the Wastewater Treatment Plant Immediate Action Projects, Package II Project, revising the total project budget to an amount of $14,695,372; approve Amendment No. 13 to the agreement with Stantec Consulting Services, Inc. to provide professional design and engineering services during construction for the Project, increasing the contract value by $399,000, for a revised total agreement amount not-to-exceed $2,126,403.46, and extend the term of the agreement through September 30, 2024; and authorize the Public Works Director to execute Amendment No. 13 in substantially the form presented and approve future amendments within the approved amount.

BACKGROUND:

The Clean Water Program (CWP) includes significant infrastructure upgrades at the Wastewater Treatment Plant (WWTP).

The WWTP Immediate Action Projects, Package II Project (Project) includes scope to improve the aging solids handling systems at the WWTP, including improvements to the sludge cake pumping system, installation of a sludge cake storage hopper, installation of a new centrifuge, improvements to the anaerobic digester piping, and refurbishments to the chlorine contact tank piping.

In August 2017, the City executed a professional design services agreement with Stantec Consulting Services, Inc. (Stantec) for the Project. Several amendments to Stantec’s agreement have since been executed for Stantec to provide design services, engineering services during construction (ESDC), and to extend the term of the Agreement; a summary of the Amendments are shown in the Budget Impact section of this agenda report.

On August 21, 2023, City Council authorized an appropriation of $1,250,000 from the Sewer Fund Reserves to the Project budget, increasing the total budget to $14,346,372. Of that previously appropriated $1,250,000 amount, $50,000 was earmarked for potential future additional ESDC from Stantec through March 30, 2024.

The Project continues to experience multiple challenges related to installation of a new sludge cake storage hopper and two new sludge cake pumps, leading to additional construction delays resulting in an extended timeframe during which Stantec's ESDC are necessary. Stantec is required to provide additional engineering services for sludge cake piping pipe supports and a new polymer ring system for the sludge cake pumps. The level of effort associated with Stantec’s ESDC effort is $399,000. Since the Project budget still has $50,000 earmarked for ESDC services from the previous August 2023 appropriation, the remaining balance of $349,000 is requested to be appropriated from the Sewer Fund Reserves to the Project (46t009) account for continued ESDC support from Stantec to address the on-going challenges. This appropriation will increase the Project budget to $14,695,372.

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CITY OF SAN MATEO
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Proposed Amendment No. 13 to Stantec’s agreement includes scope to provide additional ESDC services, extends the Agreement term through September 30, 2024 (which is currently the anticipated timeframe to bring the project to conclusion), and increases the agreement amount by $399,000 for an updated not-to-exceed amount of $2,126,403.46.

Staff reviewed and negotiated the proposal and believes it to be reasonable for the scope of work and expertise required.

This appropriation does not include additional construction, engineering, and management costs and services that may be required at a future date.

BUDGET IMPACT:

There are sufficient funds available in the Sewer Fund Reserves for the $349,000 appropriation to the WWTP Immediate Action Project, Package II Project (46t009). The appropriation will provide budget needed to fund the proposed Amendment No. 13. A summary of Stantec’s Agreement and executed Amendments are displayed below.

Agreement/Amendment Amount ($) Note
Original Agreement $876,000.00 Original Design Contract Amendment 1 $517,930.00 ESDC Services
Amendment 2 $79,800.00 Additional ESDC and Term Extension through December 31, 2021 Amendment 3 $0.00 Agreement Term Extension through March 31, 2022 Amendment 4 $0.00 Agreement Term Extension through April 30, 2022 Amendment 5 $88,673.46 Additional ESDC and Term Extension through September 15, 2022 Amendment 6 $30,000.00 Additional ESDC and Term Extension through December 31, 2022 Amendment 7 $0.00 Term Extension through January 31, 2023 Amendment 8 $60,000.00 Additional ESDC and Term Extension through April 30, 2023 Amendment 9 $0.00 Term Extension through June 30, 2023
Amendment 10 $75,000.00 Additional ESDC and Term Extension through December 31, 2023 Amendment 11 $0.00 Term Extension through February 28, 2024 Amendment 12 $0.00 Term Extension through March 31, 2024 TOTAL $1,727,403.46 Current Agreement Total
Amendment 13 $399,000.00 Additional ESDC and Term Extension through September 30, 2024 TOTAL $2,126,403.46 Revised Agreement Total
ENVIRONMENTAL DETERMINATION:

The work addressed by this administrative report is being undertaken to support the Clean Water Program. This project is subject to the requirements of the California Environmental Quality Act (CEQA), the general components of which are included as part of the Final Programmatic Environmental Impact Report (Final PEIR) (SCH No. 201532006) that was prepared for the Clean Water Program. The Final PEIR was certified by City Council on June 6, 2016.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Amendment No. 13

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CITY OF SAN MATEO
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STAFF CONTACT
Deryk Daquigan, Acting Public Works Deputy Director
[email protected]
(650) 522-7287
Matt Fabry, Public Works Director
[email protected]
(650) 522-7309

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CITY OF SAN MATEO
RESOLUTION NO. ____ 2024
APPROPRIATING $349,000 FROM SEWER FUND RESERVES TO THE WASTEWATER TREATMENT PLANT

IMMEDIATE ACTION PROJECT, PACKAGE II PROJECT BUDGET
WHEREAS, the Clean Water Program (CWP) includes significant infrastructure upgrades at the Wastewater Treatment Plant (WWTP); and
WHEREAS, the WWTP Immediate Action Projects, Package II Project (Project) includes scope to improve the aging solids handling systems at the WWTP, including improvements to the sludge cake pumping system, installation of a sludge cake storage hopper, installation of a new centrifuge, improvements to the anaerobic digester piping, and refurbishments to the chlorine contact tank piping; and WHEREAS, the Project budget accounts for construction costs and contingency reserves associated with the construction contract, and also for engineering services, project management, and construction management services; and
WHEREAS, the current available budget for the Project is $14,346,372; and WHEREAS, $50,000 of the available budget was earmarked for potential future additional engineering services during construction from Stantec Consulting Services, Inc. (Stantec), the engineer of record; and WHEREAS, the Project continues to experience multiple challenges related to installation of a new sludge cake storage hopper and two new sludge cake pumps, leading to additional construction delays resulting in an extended timeframe during which Stantec's engineering services during construction are necessary; and WHEREAS, the level of effort associated with Stantec’s required services is $399,000; and WHEREAS, to address the budget deficit required to fund Stantec’s services, an appropriation of $349,000 from the Sewer Fund Reserves to the Project account (46t009) is required, revising the total project budget to a value of $14,695,372; and
WHEREAS, this appropriation does not include additional construction, engineering, and management costs and services that may be required at a future date.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:

1. The work addressed by this administrative report is being undertaken to support the Clean Water Program. This project is subject to the requirements of the California Environmental Quality Act (CEQA), the general components of which are included as part of the Final Programmatic Environmental Impact Report (Final PEIR) (SCH No. 201532006) that was prepared for the Clean Water Program. The Final PEIR was certified by City Council on June 6, 2016.

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2. An appropriation of $349,000 from Sewer Fund Reserves to the WWTP Immediate Action Project, Package II Project account (46t009), revising the total project budget to a value of $14,695,372, is authorized.

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1 AMENDMENT NO. 13 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
Stantec Consulting Services, Inc. FOR
Immediate Action Projects Package II
($876,000 [Original Amount], $517,930 [Amendment 1], $79,800 [Amendment 2], $0 [Amendment 3], $0 [Amendment 4], $88,673.46 [Amendment 5], $30,000 [Amendment 6], $0 [Amendment 7], $60,000 [Amendment 8], $0 [Amendment 9], $75,000 [Amendment 10], $0 [Amendment 11], $0 [Amendment 12], $399,000 [Amendment 13])
WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and Stantec Consulting Services, Inc. (“CONSULTANT”), entered into an Agreement for Professional Consulting Services (“Agreement”) on August 29, 2017; and WHEREAS, the Agreement includes CONSULTANT’s design services for a sludge cake hopper and cake pumping system to be located at the CITY’s wastewater treatment plant; and
WHEREAS, challenges related to the design and/or construction have resulted in a non-functional sludge cake hopper and cake pumping system; and WHEREAS, CITY and CONSULTANT are assessing potential solutions to address these challenges; and
WHEREAS, CITY and CONSULTANT agree that CONSULTANT’s services are still required for the Project; and
WHEREAS, the CITY and CONSULTANT desire to further amend the Agreement by extending the term through September 30, 2024 and adding $399,000 in funding for CONSULTANT’s design engineering services during construction required to complete the construction of the Project that are unrelated to any alleged errors or deficiencies on behalf of either party; and
WHEREAS, this Amendment is not an admission of responsibility or any waiver of claims by the CITY or the CONSULTANT, including but not limited to CONSULTANT’s claims for compensation for Task 6 Construction Phase Services related to the sludge cake hopper and cake pumping system, which CITY contends are not reimbursable because the services were required to correct alleged error or deficiencies of CONSULTANT.

NOW, THEREFORE, the parties agree as follows:

1. Section 1, Scope of Services of the Agreement is amended to include Exhibit A13, attached and incorporated by reference.

2. Section 7, “Term, Progress and Completion,” of the Agreement, first paragraph, is amended to read:

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2 “The services to be performed under this Agreement shall commence and be completed no later than September 30, 2024.”

3. Section 8, “Payment,” of the Agreement is amended to increase the payment amount by $399,000 as outlined in Exhibit C13, attached and incorporated by reference, and the first paragraph is amended to read:
“Payment shall be made by the CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performances of the services and any reimbursable expenses set forth in this Agreement, CITY agrees to pay CONSULTANT a fee based on verified time and materials not to exceed $2,126,403.46. Requests for payments shall be itemized and correspond to the various items of work described in the Scope of Project, inclusive of the current Scope of Services as provided therein, and shall be based on the rate and cost schedule previously established."

4. The remaining terms of the Agreement remain in full force and effect.

CITY OF SAN MATEO CONSULTANT
Stantec Consulting Services, Inc.
______________________________ ___________________________________ Matt Fabry, PE Kari D. Shively, PE
Public Works Director Vice President
Date: ____________________ Date: ____________________ Approved as to Form:
_____________________________
Linh P. Nguyen, Assistant City Attorney

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Revised February 14, 2024
EXHIBIT A13

SCOPE OF SERVICES
Amendment 13: Design and Engineering Services During Construction

IMMEDIATE ACTION PROJECTS PACKAGE II

WASTEWATER TREATMENT PLANT
Job No. 46T009

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SCOPE OF SERVICES
Consultant will provide Engineering Services During Construction (ESDC) to close out the IAP2 construction. Tasks are assumed from February through September 2024. These tasks are presented as the kind of task that may occur at the Owner’s request. As long as the effort is within the budget tasks will be completed. Additional effort will only be provided as authorized through a contract modification.

Task 1: Project Management
General Services include tasks that will be performed by the Consultant throughout the project.

These services include:

Task 1.1: General Management
The Consultant will be responsible for detailed management of the project, including the Subconsultants, and will keep the Owner appraised of the status of the project. . General project management activities involving 1) communications with Construction Manager, Subconsultant, and Owner staff, and 2) invoicing and status reports and 2) coordination of site visits with the Owner and Contractor to complete the construction phase activities.

Task 1.2: Project Invoices and Progress Reports
The Consultant will prepare and submit monthly invoices. The invoices will document the man - hours and billing rates for staff, as well as any direct costs. The current and previous billing period invoicing, as well as a summary of the budget spent, budget remaining, and cost to complete will be included. The monthly progress report will be submitted with the project invoice as part of the monthly request for payment.

Task 1.3: Management of Subconsultants
The Consultant will manage the activities of the Subconsultants during performance of the project.

Subconsultants will be required to participate in the same type of internal (to their firm) management as the Prime Agreement.

Task 1.4: Quality Control Review
At each deliverable, Consultant will conduct a Quality Control review prior to submission of a Design Change Notice (DCN) by an independent technical reviewer not directly associated with the project.

Task 1 Deliverables:
• Monthly Progress Reports and Invoices
Task 1 Assumptions:
• The Project Management tasks will be through September 2024. • Record drawings will be complete by September 2024.

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TASK 6: CONSTRUCTION PHASE SERVICES
Engineering Services During Construction (ESDC) will be provided for the remaining tasks associated with closure of the construction contract.

Task 6.1: Attend Progress Meetings via Teleconference
During the construction phase, up to two Consultant/Subconsultant representatives will call into four meetings to review technical issues with the team and update progress. These meetings are assumed to be up to 1 hour in duration and occur every two weeks over a span of 7 months.

Task 6.2: Review Shop Drawing Submittal
Consultant will review shop drawing submittals (including re-submittals). The term submittal used herein includes technical submittals, shop drawings, samples, operations and maintenance manuals, and product data required to be submitted by the Contractor. Consultant will receive, log, process and review each shop drawing submittal.

Consultant shall promptly review submittals and provide written comments and recommended submittal review disposition within an average of fifteen (15) working days of receipt of a submittal.

Review will be for substantial conformity with the intent of the Contract drawings and specifications. In addition, we will provide quality control for each review. Following review, we will return one marked up submittal and a shop drawing review letter with our comments via email.

It shall not include review of quantities, dimensions, weights or gauges, fabrication processes, construction methods, coordination with the work of other trades, or construction safety precautions, all of which are the sole responsibility of the Contractor.

Task 6.2: Deliverables:
• Submittal (all types) Reviews
• Up to 10 submittals, each requiring on average 5 hours, including resubmittals, will be
r
eviewed by Subconsultant.
• Submittal review does not include review of quantities, dimensions, weights or gauges, fabrication processes, construction methods, coordination with the work of other trades, or construction safety precautions, all of which are the sole responsibility of the Contractor.

Task 6.3: Respond to Request for Information
Consultant will review Contractor Requests for Information (RFIs) for the IAP2 project. Each Contractor RFI will be logged, processed, and routed to the appropriate individual(s) to respond to the question.

Subconsultant shall provide responses to the Contractor’s Requests for Information (RFIs). RFIs shall be furnished to Subconsultant by Stantec or directly from the City, and written responses shall be provided to Stantec for dissemination to the City within an average of seven (7)
w
orking days of receipt of an RFI. It is assumed that up to 15 RFIs, each requiring on average 4 hours, will be reviewed by Subconsultant.

In addition to Contractor RFIs, it is assumed that the Construction Manager will have requests for information that go beyond what is expected from administering the construction contract. To

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account for these requests, Subconsultant assumes that up to 10 RFIs, each requiring on average 2 hours, will be reviewed by Subconsultant.

Task 6.3 Deliverables:
• 10 RFI responses regarding the polymer injection ring Task 6.4: Conduct Field Visits
Task 6.4.1: Polymer Injection DCN
Subconsultant will conduct one site visit to verify field conditions, obtain as-built dimensions, and verify electrical power supply location. It is assumed that the visit is a collaborative meeting to discuss the location of primary polymer system equipment and will include participants from the Owner, Construction Manager, and Contractor to expedite decision making. The objective of this first site visit is to make decisions on the locations of principal pieces of equipment to be used for the polymer system design. Existing peak demand data (30 days metered with peak demand in kW) for the identified electrical power source shall be provided by the Owner. Subconsultant assumes site visit will involve 2 individuals for an average duration of 4 hours, excluding travel.

Task 6.4.2: Construction Observation
Subconsultant shall make up to two visits during construction with 2 individuals for an average duration of 4 hours, excluding travel, to review the progress. The visits shall observe the general quality of the work at the time of the visit. For each site visit, Subconsultant shall prepare a site observation report documenting the areas observed and comments regarding general conformance with the design requirements.

Subconsultant shall review items of concern with the construction inspector before leaving the site.

Task 6.4 Deliverables:
• Site Observation Summary (electronic)
Task 6.5: Prepare Design Change Notice (DCN)
Pipe Support DCN
Subconsultant completed design of pipe supports for the cake pump piping to achieve the pump manufacturer’s installation instructions for nozzle load criteria, as requested by the City and in accordance with the City direction. Anticipated or completed tasks are: criteria and analysis Tech Memo (TM), pipe support recommendations TM, TM revisions, coordination calls, site visit to evaluate the pipe support at Cake Pump #2, pipe support design details, design clarification, review of Myer’s proposed construction cost, and review of submittals/RFIs.

Polymer Ring DCN
Task 6.5.1: Pre-Design
Subconsultant will coordinate with Netzsch to obtain requirements for pump, polymer ring, type of polymer, flowrate recommendations, and installation requirements. Subconsultant anticipates up to 4 coordination calls. Each coordination call is anticipated to last an average of 1- hour and shall be attended by up to 2 Subconsultant staff.

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Subconsultant will document pre-design criteria and concepts for the polymer injection system as determined during the initial site visit and discussions with Netzsch in a Pre-Design Criteria Sheet and process flow diagram. This deliverable will show the new piping and appurtenances, equipment sizing including storage tanks, primary pipe sizes, and pumps, approximate locations of new equipment, and vendor information.

Task 6.5.2: Draft Design Change Notice
Subconsultant will incorporate the concepts presented in the Pre-Design TM and prepare aa draft DCN and a related opinion of probable construction cost (OPCC). Illustrations may take the form of revised design drawings, markups of design drawings, or sketches as necessary to convey the scope of work to the Contractor with sufficient detail to implement.

Subconsultant will also prepare an Opinion of Probable Construction Costs (OPCC) at this stage.

Subconsultant shall follow the principles and guidelines of the Association for the Advancement of Cost Engineering (AACE) and standard Subconsultant cost estimating procedures. The OPCC shall meet the requirements of an AACE Class 3 estimate and will be projected to the midpoint of the construction period.

Task 6.5.3: Workshop
Consultant and Subconsultant will attend one review workshop with the Owner after review of the Draft Design Change Notice. The workshop is assumed to have a 2-hour duration and be attended by up to 4 Subconsultant staff.

Task 6.5.4: Final Design Change Notice Documents
Subconsultant will incorporate responses to comments on the Draft Design Change Notice Documents and prepare the Final Design Change Notice Documents signed and sealed.

Subconsultant shall update the OPCC as needed for the Project. The OPCC shall meet the requirements of an AACE Class 2 estimate and will be projected to the midpoint of the construction period.

Task 6.5.5: Review Contractor Change Notice Estimate
It is assumed that the City’s construction management staff will have primary responsibility for evaluation of and responses to Contractor. Once the Contractor’s estimate for the proposed work is received, Consultant shall review the estimate and provide comments.

Task 6.5 Deliverables:
• Draft Design Change Notice Documents, and OPCC (electronic) • Final Design Change Notice Documents, and Final OPCC (electronic) • Comments on Contractor Estimate (electronic). Assumes up to 20 hours.

Task 6.6: Support Startup and Commissioning
Subconsultant shall participate in startup activities for the polymer injection system. This will be limited to review and comment of submitted startup procedures, in-person attendance to a 4- hour startup activity, and preparation of field notes. In-person startup is assumed to be attended by up to 2 Subconsultant staff.

Task 6.6 Deliverables:
• Startup Field Notes for Polymer Injection (electronic)

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Task 6.7: Prepare Record Drawings
Previously allocated record drawing budget has been expended through additional ESDC support for the time extensions through December 2023. Consultant will coordinate record drawing preparation at the completion of the project including providing Subconsultant with the red- line set and the desired final format of the record drawings. Consultant will prepare Record Drawings based on the Contractor’s “redline” marked -up drawings, provided that such markups are provided by the Contractor within 1 month of the end of the construction period. The mark -ups are expected to contain clarifications, change order work, and other significant construction revisions. Consultant will not be responsible for verifying the validity of the red-line set provided by the Contractor.

Task 6.7: Deliverables:
• Record drawings
• Assumes record drawings will consist of 81 total drawings (assuming redlines are completed by contractor).
• Subconsultant assumes 62 drawings will be updated, each requiring on average 2 to 2.5 hours.

Task 6 Assumptions:
• Design and construction is handled as an amendment to the existing IAP -2 construction contract with Myers in lieu of a new construction contract. • Consultant will provide support during the remaining construction time. Assumes a design duration of 2 months and a construction duration of 5 months including preparation of record drawings. It is assumed that record drawings will be completed within one month.

The total remaining construction time to close the project is estimated through September 2024.
• The existing discharge piping includes an installed spacer ring to accommodate polymer ring without changes to discharge piping or supports.
• Assumes that the existing pump room at ground floor has sufficient space for polymer system equipment and components including totes and pumps. • The I/O associated with the new Polymer system will be tied into an existing PLC enclosure that is equipped with spare I/O and infrastructure capacity to serve the needs for this project.
• Anticipated RFIs and submittals are assumed only for the polymer injection ring.

Additional requests are outside of this proposal and will require a contract modification.

Not Part Of Consultant’s Scope
• Programming of PLC and instrumentation is excluded.
• Construction Manager is responsible for overall construction management, will schedule meetings and will prepare and distribute meeting notes. • Consultant has no control over Contractor and relies on Construction Manager to pre - review submittals to the Consultant for completeness. Construction Manager will coordinate distribution of submittals, RFIs, and test reports, to the appropriate design team members.

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• Construction Management is performed by others. Construction Manager will compile and provide the owner a complete set of RFIs, submittals, change orders, and other construction-related correspondence at the completion of the construction project. • O&M Manual preparation is not included.
• Relocation of existing utilities are not included.
• Pipe supports will be designed by Contractor.
• Construction surveying is not included.
• Participation in regular construction progress meetings is not included. • Services not specifically identified in the Scope of Work are not included.

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Stantec IAP2 Amendment 13 PM PM QC
PA
Project Technical Lead
Coordinator CAD/BIM TJCAA
KJ
Name Regan, Margaret Reed, Michael Shustova, Lana Wong, Billy Rodriguez, Diana Marshall, Robert FRD (Rate) Project Billing Rate (T&M) $292.20 $277.92 $86.41 $342.39 $199.78 $185.63 $13.29 $1.05 $1.05 Total Units (T&M) 50.00 2.00 8.00 4.00 296.00 40.00 400.00 $12,400.00 $282,580.00 Fee (T&M) $14,610.00 $555.84 $691.28 $1,369.56 $59,134.88 $7,425.20 400.00 $83,786.76 $5,316.00 $5,316.00 $13,020.00 $296,709.00 $309,729.00 $399,000.00 Task Name Start Date End Date Hours Labour Units Expense Subs Total Task 1: Project Management 2024-02-01 2024-09-30 314.00 $66,416.40 $4,173.06 $35,028.00 $105,700.00 Task 1.1: General Management 2024-02-01 2024-09-30 48.00 2.00 8.00 256.00 314.00 $66,416.40 314.00 $4,173.06 $20,660.00 $21,693.00 $92,282.46 Task 1.4: Quality Control Review 2024-02-01 2024-09-30 0.00 $0.00 $0.00 $12,700.00 $13,335.00 $13,335.00 TASK 6: CONSTRUCTION PHASE SERVICES 2023-02-01 2024-09-30 86.00 $17,370.36 $1,142.94 $274,701.00 $293,300.00 Task 6.1: Attend Progress Meeting 2024-03-01 2024-04-30 $4,140.00 $4,347.00 $4,347.00 Task 6.2: Review Shop Drawing Submittal 2024-02-01 2024-08-01 $9,980.00 $10,479.00 $10,479.00 Task 6.3: Respond to Request for Information 2024-02-01 2024-06-30 $8,160.00 $8,568.00 $8,568.00 Task 6.4: Conduct Field Visits 2024-03-01 2024-04-30 $14,510.00 $15,235.50 $15,235.50 Task 6.5: Prepare Design Change Notice (DCN) 2024-03-01 2024-05-10 $190,080.00 $199,584.00 $199,584.00 Task 6.6: Support Startup and Commissioning 2023-02-01 2023-08-30 0.00 $0.00 $0.00 $8,400.00 $6,010.00 $15,130.50 $15,130.50 Task 6.7: Prepare Record Drawings 2024-09-01 2024-09-30 2.00 4.00 40.00 40.00 86.00 $17,370.36 86.00 $1,142.94 $4,000.00 $16,340.00 $21,357.00 $39,870.30 Exhibit C13

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CITY OF SAN MATEO
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8 3

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 11 Section Name: CONSENT CALENDAR Account Number: 10-1311 File ID: 24-8422 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: March 18, 2024
SUBJECT:

Peninsula Clean Energy Solar and Storage on Public Buildings Program – Power Purchase Agreement RECOMMENDATION:

Approve an agreement with Peninsula Clean Energy (PCE) for a Power Purchase Agreement (PPA) to procure, install, operate and maintain a solar photovoltaic system at the Beresford Park parking lot; approve an Interconnection Agreement with PG&E to connect to and operate the solar photovoltaic system in parallel with PG&E’s electric system; and authorize the City Manager to execute the agreements in substantially the form presented and to execute any amendments necessary to implement the solar photovoltaic system.

BACKGROUND:

Peninsula Clean Energy (PCE) is a joint powers authority developed in 2016 to reduce greenhouse gas emissions by providing electricity from clean energy sources. PCE’s Solar and Storage on Public Buildings Program assists cities in evaluating solar potential at municipal facilities. In addition, this program provides the option to enter into a Power Purchase Agreement (PPA) with PCE for the design, procurement, installation, and maintenance of solar systems at the identified facilities at no cost to public agencies. This program was developed to support PCE’s organizational objectives to increase local renewable generation, help reduce customer energy costs, and help its customers achieve their sustainability goals. This program also aligns with the City Climate Action Plan’s goal to reduce greenhouse gas emissions and support local renewable energy generation.

In November 2023, the City Council authorized the City Manager to enter into a Customer Participation Agreement with PCE to assess solar potential at City-owned sites. In Fall 2023, City staff evaluated PCE’s draft PPA terms and provisions.

Under the PPA model, the solar photovoltaic (PV) system would be installed at no cost to the City and financed through the PPA. PCE will lead the design, installation, operations and maintenance of the solar PV system, and the City would pay PCE an agreed upon price per kilowatt-hour (kWh) for power generated throughout the system’s life. The PPA will be provided “at cost” by PCE to cover equipment and installation. In addition, PCE will also retain a small $/kWh fee to cover its expenses. The contract term is 20 years, the expected lifespan of the solar system. A termination penalty payment schedule is delineated to ensure PCE recoups costs for their investment if the City chooses to terminate the PPA prior to the 20 year term.

The assessment phase evaluated five City sites in depth for consideration. Because of the 20-year term of the agreement and constraints therein, sites where there are planned major repairs or renovations which could have sitewide impacts were ultimately removed from the list. Staff identified the Beresford Park parking lot as the optimal site to move forward in the program because it affords the greatest degree of certainty that the City can maintain adherence to the terms of the agreement of the 20-year term.

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CITY OF SAN MATEO
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Key elements of the PPA include:
•$/kWh price for energy produced by the system
•0% escalation over the contract term
•20-year initial term with option for up to two additional, five-year terms or customer buyout •PPA rate is projected to provide immediate savings in Year 1 •PCE provides operations and maintenance, which is included in the PPA price In Fall 2023, PCE ran a competitive Request for Proposals (RFP) process and selected McMillan and Intermountain Electric (IME) to be the engineering, procurement and construction (EPC) providers for the program. PCE’s program includes the solar installations in jurisdictions across San Mateo County including Daly City, Menlo Park and Redwood City. For next steps, City staff will facilitate additional site access, as needed. PCE will provide all construction administration and oversight with project construction anticipated for later 2024/early 2025.

As part of this project, the City is also required to execute an Interconnection Agreement with PG&E in order to connect the PV system to and operate in parallel with PG&E’s electric grid system. A copy of the standard template Interconnection Agreement is included as Attachment Two.

Based on the above, staff recommends for Council to approve of the PPA and the Interconnection Agreement and authorize the City Manager to execute the agreements.

BUDGET IMPACT:

There is no fiscal impact for entering the Power Purchase Agreement with Peninsula Clean Energy. There is no upfront cost to the City for entering into the Agreement. The solar photovoltaic system is anticipated to provide utility cost savings over the life of the project beginning in Year 1.

ENVIRONMENTAL DETERMINATION:

This agreement is exempt from CEQA as an “existing facility”, because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Power Purchase Agreement
Att 2 - PG&E Interconnection Agreement

STAFF CONTACT
Christina Horrisberger, Assistant City Manager
[email protected]
(650) 522-7210

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Solar Power Purchase Agreement
This Solar Power Purchase Agreement (this “Agreement”) is entered into by the parties listed below (each a “Party” and collectively the “Parties”) as of [date], 2024 (the “Effective Date”).

Purchaser: Seller:

Name
and
Address
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403
Attention: Christina Horrisberger, Asst.

City Manager
Name
and
Address
Peninsula Clean Energy Authority
2075 Woodside Rd.

Redwood City, CA 94061
Attention: Rafael Reyes, Director
of Programs
Phone 650-522-7210 Phone (650) 260-0087
E-mail [email protected] E-mail [email protected] Premises
Ownership Purchaser owns the Premises.

Tax Status System Owner
Project Name Beresford Rec Center
This Agreement sets forth the terms and conditions of the purchase and sale of solar generated electricity from the solar panel system described in Exhibit 2 (the “System”) and installed on the real property comprising Purchaser’s premises described or depicted in Schedule A to Exhibit 2 (the “Premises”), including any buildings and other improvements on the Premises other than the System (the “Improvements”).

The System shall initially be owned by Seller. “System Owner” means Seller or a subsequent owner of the System in the event that Seller transfers title to the System.

The exhibits listed below are incorporated by reference and made part of this Agreement.

Exhibit 1Pricing
Exhibit 2System Description, Delivery Point and Premises Exhibit 3General Terms and Conditions
Exhibit 4Performance Guaranty
Purchaser: City of San Mateo Seller: Peninsula Clean Energy Authority Signature: Signature:

Printed Name: Printed Name: Shawn Marshall
Title: Title: Chief Executive Officer
Date: Date:

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Exh. 1, p. 1
Exhibit 1
Pricing

1. Initial Term: Twenty (20) years, beginning on the date that Commercial Operation is achieved (such date, the “Commercial Operation Date” and such term, the “Initial Term”). “Commercial Operation” means that the System is mechanically complete, commences regular, daily operation, complies with all applicable law, has undergone successful system testing, is providing electricity to the Delivery Point at the System Size specified in Exhibit 2 and has obtained all necessary Approvals (as defined in Section 5(b) of Exhibit 3), including permission to operate from the Utility and Seller.

2. Additional Terms: Upon mutual written agreement, the Parties may extend the Initial Term for up to two (2) additional terms of up to five (5) years each beginning on the expiration of the Initial Term or on the expiration of the first Additional Term, as applicable (each, an “Additional Term”).

3. Contract Price: $0.271 per kilowatt-hour (“kWh”) AC at the Delivery Point specified in Exhibit 2.

4. Contract Price Assumptions. The Contract Price is based on the following assumptions:
a. Statutory prevailing wage rates (e.g., Davis-Bacon) do apply. b. A Performance Guaranty is being provided.

5. Contract Price Exclusions. Unless Seller and Purchaser have agreed otherwise in writing, and except as otherwise provided in Section 2(c) of Exhibit 3, the Contract Price excludes the following:
a. Groundwork (including excavation and circumvention of underground obstacles) that is unforeseen despite reasonable efforts to assess existing site conditions. Upgrades or repair to Purchaser or Utility electrical infrastructure (including Purchaser or Utility service, transformers, substations, poles, breakers, reclosers, and disconnects). “Utility” means the electric distribution utility serving Purchaser.
b. Tree removal, tree trimming, mowing and any landscape improvements. c. Decorative fencing and/or any visual screening materials, decorative enhancements to solar support structures (including painting, paint matching, masonry/stone work, and any lighting not required to meet the minimum code compliance). d. Removal of existing lighting, light poles, or concrete light post bases. e. Roof membrane maintenance or reroofing work.
f. Structural upgrades to the Improvements, including Americans with Disabilities Act (“ADA”) upgrades. g. Installation of public information screen or kiosk (including accompanying Internet connection, power supply, technical support and ADA access).
h. Changes in System design caused by any inaccuracy in information provided by Purchaser, including information regarding Purchaser’s energy use, the Premises and the Improvements, including building plans and specifications.

If such excluded costs will result in an increase to the Contract Price, Seller shall deliver notice to Purchaser of such increase to the Contract Price not less than sixty (60) days prior to commencement of the installation of the System (“Commencement of Installation” and such notice, the “Excluded Costs Notice”). If excluded costs will result in an increase to the Contract Price such that the revised Contract Price would increase by no more than five percent (5%), Purchaser shall be responsible for such increased Contract Price and the Contract Price shall be amended to reflect the new Contract Price included in the Excluded Costs Notice. If such excluded costs will result in an increase to the Contract Price, such that the revised Contract Price would increase by more than five percent (5%), Purchaser shall have a right to terminate this Agreement without penalty by providing notice of such termination within thirty (30) days of delivery of the Excluded Costs Notice.

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Exh. 1, p. 2

6.Termination Payment Schedule:

Contract Year Termination Payment
($)
1 $471,599
2 $451,473
3 $431,386
4 $411,340
5 $391,334
6 $371,371
7 $351,452
8 $331,578
9 $311,750
10 $291,970
11 $272,240
12 $252,560
13 $232,932
14 $213,358
15 $193,839
16 $174,378
17 $154,975
18 $135,633
19 $116,353
20 $97,137

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Exhibit 2
System Description, Delivery Point and Premises

1.System Location: 2720 Alameda de las Pulgas, San Mateo, CA 94403

2.System Size (DC kW): 52.8 (AC kW): 48.1

3.System Description (Expected Structure, etc.): Carport

4.Delivery Point and Premises: Schedule A to this Exhibit 2 contains one or more drawings or images depicting:
a. Premises, including the Improvements (as applicable); b. Proposed System location at the Premises;
c. Delivery point for electricity generated by the System (the “Delivery Point”); d. Access points needed for Seller to cause the System to be installed and serviced (building access, electrical room, stairs, etc.); and
e. Construction assumptions (if any).

Schedule A

1. Physical building address: 2720 Alameda de las Pulgas, San Mateo, CA 94403

2. Number of Stories: 0

3. Total Square Footage: 27,000

4. Year Built: 1948

5. Year of any mechanical/electrical updates: N/A

6. Type of Construction, (example; wood frame, masonry, steel): Asphalt

7. Description/ Type of roof structure/system: None

8. Confirm whether the building is sprinklered: N/A

9. Describe any additional security measures, (example: video surveillance, etc.): N/A A Site Plan and Single Line Diagram are attached at the end of this Schedule A labeled “Attachment 1 to Schedule A of Exhibit 2”.

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Exhibit 3
General Terms and Conditions
Exhibit 3 Table of Contents

1. PURCHASE AND SALE OF ELECTRICITY....................................................................................................................1

2. TERM AND TERMINATION ..............................................................................................................................................1

3. BILLING AND PAYMENT; TAXES...................................................................................................................................1

4. RECS AND INCENTIVES ....................................................................................................................................................2

5. PROJECT COMPLETION ...................................................................................................................................................3

6. INSTALLATION, OPERATION AND MAINTENANCE ................................................................................................4

7. MISCELLANEOUS RIGHTS AND OBLIGATIONS OF THE PARTIES .....................................................................5

8. RELOCATION OF SYSTEM ...............................................................................................................................................6

9. REMOVAL OF SYSTEM UPON TERMINATION OR EXPIRATION .........................................................................6

10. MEASUREMENT ..............................................................................................................................................................7

11. DEFAULT, REMEDIES AND DAMAGES.....................................................................................................................7

12. REPRESENTATIONS AND WARRANTIES.................................................................................................................9

13. INSURANCE ....................................................................................................................................................................12

14. OWNERSHIP; OPTION TO PURCHASE ...................................................................................................................12

15. INDEMNIFICATION AND LIMITATIONS OF LIABILITY...................................................................................13

16. CHANGE IN LAW...........................................................................................................................................................15

17. ASSIGNMENT AND FINANCING ...............................................................................................................................15

18. CONFIDENTIALITY......................................................................................................................................................16

19. GENERAL PROVISIONS ..............................................................................................................................................17

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Exhibit 3
General Terms and Conditions

1. Purchase and Sale of Electricity. Subject to the terms and conditions of this Agreement, Purchaser shall purchase from Seller, and Seller shall sell to Purchaser, all of the electricity generated by the System during the Term (as defined in Section 2(a)).

Electricity generated by the System shall be delivered to Purchaser at the Delivery Point. Title to and risk of loss for the electricity generated by the System passes to Purchaser from Seller at the Delivery Point. Seller warrants that it will deliver the electricity to Purchaser at the Delivery Point free and clear of all liens, security interests, claims, and other encumbrances.

2. Term and Termination.
a. Effective Date; Term. This Agreement is effective as of the Effective Date. The electricity supply period under this Agreement commences on the Commercial Operation Date (as defined in Section 1 of Exhibit 1) and continues for the duration of the Initial Term and any Additional Terms, unless earlier terminated as provided for in this Agreement (collectively, the “Term”).
b. Additional Terms. The Parties may agree in writing to extend this Agreement for up to two (2) Additional Terms at a Contract Price to be negotiated by the Parties prior to the expiration of the Initial Term or the first Additional Term, as applicable.
c. Termination Due to Contract Price Adjustments or Lack of Project Viability. If, at any time after the Effective Date and prior to Commencement of Installation, (i) Purchaser terminates this Agreement pursuant to Section 5 of Exhibit 1, or (ii) Seller determines that the installation of the System will not be viable for any reason, then either Party may terminate this Agreement by providing ten (10) days’ prior written notice to the other Party. Neither Party shall be liable for any damages in connection with such termination. After Commencement of Installation, the Contract Price shall not be subject to further adjustment pursuant to Section 5 of Exhibit 1 or otherwise. d. Termination by Purchaser for Delay. If Commencement of Installation has not occurred within three hundred and sixty-five (365) days after the Effective Date, Purchaser may terminate this Agreement by providing thirty (30) days’ prior written notice to Seller; provided that this Agreement will not terminate pursuant to this Section 2(d) if Seller causes to be achieved Commencement of Installation on or before the end of such thirty (30) day notice period or if Commencement of Installation is delayed due to a Force Majeure Event. Purchaser shall not be liable for any damages in connection with such termination. For the avoidance of doubt, such event shall not be deemed a Default Event by Seller and Purchaser’s only remedy shall be the reimbursement by Seller of direct costs reasonably incurred by Purchaser by reason of the termination.

3. Billing and Payment; Taxes.
a. Monthly Charges. Purchaser shall pay Seller monthly for the electricity generated by the System and delivered to the Delivery Point at the $/kWh rate shown in Exhibit 1 as adjusted by Section 5 of Exhibit 1, if applicable (the “Contract Price”). The monthly payment for such energy will be equal to the applicable $/kWh rate multiplied by the number of kWh of electricity generated during the applicable month, as measured by the Meter (as defined in Section 10).

Additional costs for items differing from the assumptions in Exhibit 1, Section 4 are Purchaser’s responsibility. b. Monthly Invoices. Seller shall invoice Purchaser monthly for amounts owed by Purchaser hereunder. Such monthly invoices shall state (i) the amount of electricity produced by the System and delivered to the Delivery Point, (ii) the rates applicable to, and charges incurred by, Purchaser under this Agreement, and (iii) the total amount due from Purchaser.
c. Payment Terms. All amounts due under this Agreement are due and payable within thirty (30) days following receipt of invoice. Any undisputed portion of the invoice amount not paid within such thirty (30) day period shall accrue interest at the annual rate of two and one-half percent (2.5%) above the Prime Rate (but not to exceed the maximum rate permitted by law). All payments shall be made in U.S. dollars. “Prime Rate” shall mean the annual prime rate of interest published in the Wall Street Journal for the applicable period during which interest is incurred pursuant to the terms of the Agreement.

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d. Taxes.
i.Purchaser’s Taxes. Purchaser is responsible for: (A) payment of, or reimbursement of Seller for, all taxes assessed on the generation, sale, delivery or consumption of electricity produced by the System or the interconnection of the System to the Utility’s electricity distribution system; (B) real property taxes; and (C) any sales or use taxes as a result of exercising the options to purchase the System in Section 14(b). ii.Seller’s Taxes. Seller is responsible for: (A) payment of income taxes or similar taxes imposed on Seller’s revenues due to the sale of electricity under this Agreement; and (B) personal property taxes imposed on the System (“Seller’s Taxes”).
e. Budgeting for Contract Price. Upon execution of this Agreement and prior to the commencement of each subsequent budgetary cycle of Purchaser during the Initial Term (and Additional Term, if any), Purchaser shall take all necessary action to obtain all necessary budgetary approvals and certifications for payment of all of its obligations under this Agreement for such budgetary cycle, including, but not limited to including the maximum amount of its annual payment obligations under this Agreement in its budget submitted to Purchaser’s City Council for each year of that budget cycle.

4. RECs and Incentives.
a. Definitions.
“Governmental Authority” means any foreign, federal, state, local or other governmental, regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, court, tribunal, arbitrating body or other governmental authority having jurisdiction or effective control over a Party. “Incentives” means (i) a payment paid by a utility or state or local Governmental Authority based in whole or in part on the cost or size of the System such as a rebate, (ii) a performance-based incentive paid as a stream of periodic payments by a utility, state or Governmental Authority based on the production of the System, (iii) investment tax credits, production tax credits, and similar tax credits, grants or other tax benefits under federal, state or local law, including, but not limited to, the election to receive a payment with respect to investment tax credits or production tax credits pursuant to Code Section 6417, and (iv) any other attributes, commodity, revenue stream or payment in connection with the System (such as ancillary or capacity revenue), in each case of (i) through (iv) relating to the construction, ownership, use or production of energy from the System, provided that Incentives shall not include RECs. “REC” means a renewable energy credit or certificate under any state renewable portfolio, standard or federal renewable energy standard, voluntary renewable energy credit certified by a non-governmental organization, pollution allowance, carbon credit and any similar environmental allowance or credit and green tag or other reporting right under Section 1605(b) of The Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and international or foreign emissions trading program, in each case relating to the construction, ownership, use or production of energy from the System, provided that RECs shall not include Incentives. b. RECs. The Parties hereby agree that Seller is entitled to the benefit of, and will retain all ownership interests in, the RECs. Seller shall not sell, assign or otherwise transfer the RECs to a third party. If necessary, Purchaser shall cooperate with Seller in obtaining, securing and transferring any and all RECs. Purchaser is not obligated to incur any out-of- pocket costs or expenses in connection with such actions unless reimbursed by Seller. Purchaser shall not make any filing or statements inconsistent with Seller’s ownership interests in the RECs, nor shall Purchaser attempt to sell, assign or transfer such RECs. If any RECs are delivered directly to Purchaser, Purchaser shall immediately deliver such items or amounts to Seller.
c. Incentives. The Parties hereby agree that Seller or a subsequent System Owner, if applicable, and not Purchaser, is entitled to the benefit of, and will retain all ownership interests in, the Incentives. If necessary, Purchaser shall cooperate with Seller and any such third-party System Owner in obtaining, securing and transferring any and all Incentives, including cooperating, as requested by Seller, with respect to any challenges as to Seller obtaining any portion or amount of the Incentives. Without limiting the foregoing, Purchaser acknowledges that Seller intends to qualify for the elective payment incentive (the “Elective Pay Incentive”) and make the elective payment election in Section 6417 of the Internal Revenue Code of 1986, as amended (the “Code”) with respect to the federal income tax credits (the “Applicable Credits”) under either Code Sections 45 or 48. Purchaser agrees to cooperate with Seller to the extent requested by Seller, so that Seller can (i) qualify for the Applicable Credits in the context of the Elective Pay Incentive, (ii) make the elective payment election and obtain a payment of applicable proceeds with respect to the Elective Pay Incentive, (iii) avoid a disallowance, recapture, or reduction of the proceeds with respect to the Elective Pay Incentive,

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and (iv) prevent an excessive payment as set forth in Code Section 6417(d)(6). Purchaser is not obligated to incur any out-of-pocket costs or expenses in connection with such actions unless reimbursed by Seller or any such System Owner.

Purchaser shall not make any filing or statements inconsistent with Seller’s or System Owner’s ownership interests in the Incentives, nor shall Purchaser attempt to sell, assign or transfer such Incentives. If any Incentives are delivered directly to Purchaser, Purchaser shall immediately deliver such items or amounts to Seller.

5. Project Completion.
a. Project Development. Seller shall use reasonable efforts to pursue or cause to be pursued the development and installation of the System, subject to Section 2(c) and the remaining provisions of this Section 5. b. Permits and Approvals. Seller shall use reasonable efforts to cause to be obtained the following at its sole cost and expense (each, an “Approval”):
i. any zoning, land use and building permits required for Seller to cause the System to be constructed, installed and operated; and
ii. any agreements and approvals from the Utility necessary in order to interconnect the System to the Utility’s electric distribution system.

Purchaser shall reasonably cooperate with Seller’s reasonable requests to assist Seller in expeditiously obtaining such Approvals, including, without limitation, the execution of documents required to be provided by Purchaser to the Utility. The Parties acknowledge and agree that Purchaser does not have authority or jurisdiction over any other public agency’s ability to grant Approvals or ability to impose limitations that may affect the System, provided, that such acknowledgment and agreement does not apply to joint powers authorities or related agencies over which Purchaser asserts authority. c. Force Majeure.
i.Force Majeure Event. If either Party is unable to timely perform any of its obligations (other than payment obligations) under this Agreement in whole or in part due to a Force Majeure Event, that Party will be excused from performing such obligations for the duration of the time that such Party remains affected by the Force Majeure Event; provided, that such Party uses reasonable efforts to mitigate the impact of the Force Majeure Event and resumes performance of its affected obligations as soon as reasonably practical. The Party affected by the Force Majeure Event shall notify the other Party as soon as reasonably practical after the affected Party becomes aware that it is or will be affected by a Force Majeure Event. If the Force Majeure Event occurs during the Term and impacts the ability of the System to deliver electricity to the Delivery Point, the Term will be extended day for day for each day delivery is suspended due to the Force Majeure Event, up to a maximum of two (2) years.
ii.Extended Force Majeure. If a Force Majeure Event notified by either Party under paragraph (i) above continues for a consecutive period of three hundred sixty-five (365) days or more, then either Party may elect to terminate this Agreement without either Party having further liability under this Agreement except: (A) liabilities accrued prior to termination, (B) Seller’s obligation to cause the System to be removed as required under Section 9 (but Purchaser shall reimburse Seller for Seller’s removal costs if the Force Majeure Event affects Purchaser and Purchaser elects to terminate the Agreement) and (C) if Purchaser elects to terminate the Agreement in accordance with this Section, Purchaser shall pay Seller a termination payment equal to the amount set forth in Section 6 of Exhibit 1. Notwithstanding the foregoing, if the Force Majeure Event can be corrected through repair or restoration of the System or other actions by Seller and, prior to expiration of the three hundred sixty-five (365) day period, Seller provides written evidence to Purchaser that it is diligently pursuing such actions, then Purchaser shall not have the right to terminate this Agreement so long as Seller continues to diligently pursue such actions. iii.Definition of “Force Majeure Event.” “Force Majeure Event” means any event or circumstance beyond the reasonable control of and without the fault or negligence of Seller, including, without limitation: an act of God; war (declared or undeclared); sabotage; piracy; riot; insurrection; civil unrest or disturbance; military or guerilla action; terrorism; economic sanction, tariff or embargo; civil strike, work stoppage, slow-down, or lock-out; explosion; fire; earthquake; tsunami; storm; tornado; blizzard; heatwave; hurricane; flood; lightning; hail; wind; drought; animals; epidemic; pandemic; action or the failure to act by a Governmental Authority or the Utility, including, but not limited to, a moratorium on any activities related to this Agreement or the delay or a lack of a final Approval based on the California Environmental Quality Act (“CEQA”) or other applicable law, provided that the delay in decision-making is not attributable to the Party claiming a Force Majeure Event and that such

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Party has exercised its reasonable efforts to cause such Approval to be obtained; delays in interconnection, provided that the delay in obtaining interconnection is not attributable to the Party claiming a Force Majeure Event or its agents; unavailability of electricity from the Utility grid; and failure or unavailability of equipment, supplies or products outside of Seller’s control or due to a Force Majeure Event. For purposes of the definition of “Force Majeure Event,” a Party shall not be considered a Governmental Authority if such Party is claiming the presence of a Force Majeure Event as an excuse for its failure to timely perform its obligations under this Agreement. d. Extension of Time. If Seller is delayed in causing the achievement of Commencement of Installation due to a Force Majeure Event, the time for achievement of Commencement of Installation will be automatically extended to account for the impact of the delay.
e. Commercial Operation. Seller shall notify Purchaser in writing at least one week prior to the Commercial Operation Date. Upon Purchaser’s reasonable request, Seller shall provide Purchaser with the “Final Completion Certificate” as executed by the contractor to Seller responsible for installing the System and the “Final Completion Notification” as executed by Seller to evidence that the System is ready to begin Commercial Operation. Purchaser may not turn on, electrify or otherwise operate the System in the absence of prior, written permission from Seller.

6. Installation, Operation and Maintenance.
a. Seller’s General Obligations Regarding the System. Subject to the terms and conditions of this Agreement, Seller shall use reasonable efforts to cause the System to be designed, engineered, installed, commissioned, monitored, operated and maintained, in each case in a good and workmanlike manner and in accordance with applicable law and prudent solar industry practices in the State of California. The Seller shall ensure that the System complies with all applicable law, rules, regulations and local building codes. In furtherance of the foregoing, Seller shall use reasonable efforts to enforce all of its rights under its agreement or agreements with the installer of the System and with the entity engaged to operate and maintain the System; provided, that Seller shall maintain full discretion with respect to any determinations regarding the nature of such enforcement actions and Seller shall not be obligated pursuant to this Agreement to initiate litigation or other legal process. b. System Design Approval. Seller has provided Purchaser with a copy of the System design, and Purchaser has approved such design. Should any subsequent changes to the System design be made prior to Commencement of Installation, Purchaser shall be provided with a copy of any such revised System design and any resulting changes to the Contract Price, 6 of Exhibit 1, any of the data on Exhibit 2 and/or Table 1.A of Exhibit 4, and Purchaser shall have ten (10) business days after receipt to approve or disapprove the revised design and any such resulting changes in writing, such approval not to be unreasonably withheld. Failure by Purchaser to respond within such ten (10) business day period shall be deemed approval of the revised System design and any such resulting changes. If Purchaser disapproves the revised System design and/or any such resulting changes, Seller may either (i) cause the design to be reverted to the original design approved by Purchaser or (ii) terminate this Agreement and such termination shall be without further liability to Purchaser. If changes to the System design or other changes, including new information regarding Purchaser’s electricity needs or Seller’s selection of equipment for the System, will result in a change to any of the data on Exhibit 2 (including, but not limited to the System Size), the Contract Price, 6 of Exhibit 1, any of the data on Exhibit 2 and/or Table 1.A of Exhibit 4, such sections and/or table of this Agreement may be revised if any such changes are approved by both Parties in writing. If changes to the System design are reasonably expected to lower the costs to Seller of engineering, constructing, installing, interconnecting, operating, maintaining, repairing and/or removing the System, Seller may, in its sole discretion, decrease the Contract Price and provide such updated Contract Price to Purchaser in an addendum to this Agreement. c. System Repair and Maintenance. Seller may cause the suspension of delivery of electricity from the System to the Delivery Point for the purpose of causing the maintenance to and repairs of the System; provided that Seller shall use reasonable efforts to minimize any interruption in service to the Purchaser and shall provide at least thirty (30) business days’ advance notice to Purchaser of any scheduled maintenance and repairs. Emergency maintenance and repairs may be performed in the absence of such notice if necessary to prevent harm to persons or property. Scheduled and unscheduled maintenance and repairs shall be undertaken at Seller’s sole cost and expense, except that Purchaser shall reimburse Seller for the reasonable cost of any repairs or maintenance resulting from damage caused by Purchaser, its agents, employees or contractors.
d. System Outage Allowance. Upon Purchaser’s written request, Seller shall cause the System to be taken off-line for a total of forty-eight (48) daylight hours (as defined by the United States National Weather Service in the area where the System is located) during each Contract Year (each event an “Outage” and the forty-eight (48) hour period the “Outage Allowance”). The Outage Allowance includes all Outage hours undertaken by Seller for maintenance or

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repairs for which Purchaser is responsible pursuant to Section 6(c) or requested by Purchaser under this Section 6(d) (other than due to the fault or negligence of Seller). Purchaser’s request shall be delivered at least forty-eight (48) hours in advance. Purchaser is not obligated to accept or pay for electricity that could have been delivered by the System but for an Outage up to the annual Outage Allowance. If the aggregate hours for Outages, including, but not limited to Outages resulting from a temporary disconnection or removal pursuant to Section 6(f), exceed the Outage Allowance in a given Contract Year and Purchaser has opted out of receiving retail electric generation service from Seller, Seller shall reasonably estimate the amount of electricity that would have been delivered to Purchaser during such excess Outages and Purchaser shall pay Seller for such amount in accordance with this Agreement. e. Maintenance of Premises. Purchaser shall, at its sole cost and expense, maintain the Premises and Improvements in good condition and repair. Purchaser, to the extent within its reasonable control, (i) shall ensure that the Premises remains interconnected to the local Utility grid at all times; and (ii) shall not permit cessation of delivery of electric service to the Premises from the local Utility. Purchaser is fully responsible for, and shall properly maintain in full working order and good repair, the electrical infrastructure on the Purchaser’s side of the Delivery Point, including all of Purchaser’s equipment that utilizes the System’s outputs. Purchaser shall use reasonable efforts to cooperate with Seller to comply with any technical standard of the Utility providing electrical power to the Purchaser. f. Alteration or Repairs to Premises. Not less than ninety (90) days prior to making any alterations or repairs to the Premises (except for emergency repairs) or any Improvement which may adversely affect the operation and maintenance of the System, Purchaser shall inform Seller in writing and, thereafter, shall use reasonable efforts to conduct such repairs, alterations or Improvements in compliance with any reasonable request made by Seller within ten (10) days after having received such written request to mitigate any adverse effect. If any repair, alteration or Improvement result in a permanent and material adverse economic impact on the System, Purchaser may request relocation of the System under Section 8 hereof. To the extent that temporary disconnection of the System is necessary in order for Purchaser to perform such alterations or repairs, Seller shall cause to be performed such work, and any re- connection of the System, at Purchaser’s cost, subject to Section 6(c), 6(d), and 6(e). To the extent that temporary removal of the System is necessary in order for Purchaser to perform such alterations or repairs, Seller shall use reasonable efforts to cause to be performed such removal work within one hundred and eighty (180) days of Seller’s determination that such temporary removal is required and any such removal and re-installation work shall be at Purchaser’s cost, subject to Section 6(c), 6(d), and 6(e). Purchaser shall cause to be made any alterations and repairs in a good and workmanlike manner, in compliance with all applicable laws, codes and permits.

7. Miscellaneous Rights and Obligations of the Parties. a. Access Rights. In consideration of and in order to effectuate the mutual covenants and terms of this Agreement, Purchaser hereby grants to Seller and to Seller’s agents, employees, contractors and subcontractors and the Utility (i) a non-exclusive license running with the Premises (the “Non-Exclusive License”) for access to, on, over, under and across the Premises from the Effective Date until the date that is one hundred and eighty (180) days following the date of expiration or earlier termination of this Agreement (the “License Term”), for the purposes of performing all of Seller’s obligations and enforcing all of Seller’s rights set forth in this Agreement and otherwise as required by Seller in order to effectuate the purposes of this Agreement, including, but not limited to design, engineering, development, construction, installation, inspection, interconnection, testing, operation, maintenance, repair, replacement and removal of the System and all incidental and related uses connected therewith. In addition to the foregoing, if the System shall be a ground-mounted System to be located within a secure, fenced area on the Premises, Purchaser hereby grants to Seller an exclusive, sub-licensable license running with the Premises (the “Exclusive License”, and together with the Non-Exclusive License, the “Licenses”) for purposes of the installation, operation, use and maintenance of the System on such exclusively licensed area of the Premises during the License Term. Seller shall provide at least seventy-two (72) hours advance notice to Purchaser of any access required prior to the Commercial Operation Date; after the Commercial Operation Date notice shall be provided subject to Section 6(c). Seller shall use reasonable efforts to ensure that when on the Premises during the License Term, it and its employees, agents, contractors and subcontractors comply with Purchaser’s site safety and security requirements, which are to be provided to Seller in writing within sixty (60) days of the Effective Date. During the License Term, Purchaser shall preserve and protect Seller’s rights under the Licenses and Seller’s access to the Premises and shall not interfere, or permit any third parties under Purchaser’s control to interfere, with such rights or access. Seller may record a customary memorandum of license in the land records respecting the Licenses. b. OSHA Compliance. Each Party shall comply with all Occupational Safety and Health Act (“OSHA”) requirements and other similar applicable safety laws and codes with respect to such Party’s performance under this Agreement. c. Safeguarding the Premises. Purchaser shall maintain the physical security of the Premises and Improvements in a

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manner to be expected of a reasonable and prudent owner of premises and improvements similar to the Premises and Improvements in nature and location. Purchaser shall not conduct or permit activities on, in or about the Premises or the Improvements that have a reasonable likelihood of causing damage, impairment or otherwise adversely affecting the System. Purchaser shall indemnify Seller for any loss or damage to the System to the extent caused by or arising out of (i) Purchaser’s breach of its obligations under this Section or (ii) the acts or omissions of Purchaser or its employees, agents, invitees or separate contractors. Without limiting the foregoing, Seller shall arrange for security of the System, equipment and tools during the construction of the System and Purchaser shall cooperate with Seller and its contractor with respect to such security measures. The obligations set forth in this Section 7(c) shall survive until the date that is one hundred and eighty (180) days following the date of expiration or earlier termination of this Agreement.
d. Insolation. Purchaser acknowledges that unobstructed access to sunlight (“Insolation”) is essential to Seller’s performance of its obligations and a material term of this Agreement. Purchaser shall not, to the extent within its reasonable control, cause or permit any interference with the System’s Insolation, and shall ensure that vegetation on the Premises adjacent to the System is regularly pruned or otherwise maintained to prevent interference with the System’s Insolation. If either Party discovers any activity or condition that could diminish the Insolation of the System, such Party shall immediately notify the other Party and Purchaser shall cooperate with Seller in preserving and restoring the System’s Insolation levels as they existed on the Effective Date. e. Use and Payment of Contractors and Subcontractors. Seller shall use and shall cause to be used suitably qualified, experienced and licensed contractors and subcontractors to perform its obligations under this Agreement. However, Seller shall be responsible for the quality of the work performed by such contractors and subcontractors. Seller shall pay or shall cause to be paid when due all valid charges from all contractors, subcontractors and suppliers supplying goods or services to Seller under this Agreement.
f. Liens.
i.Lien Obligations. Purchaser shall not directly or indirectly cause, create, incur, assume or allow to exist any mortgage, pledge, lien, charge, security interest, encumbrance or other claim of any nature, except such encumbrances as may be required to allow Seller access to the Premises (each a “Lien”) on or with respect to the System. Seller shall not directly or indirectly cause, create, incur, assume or allow to exist any Lien on or with respect to the Premises or the Improvements, other than those Liens which Seller is permitted by law to place on the Premises due to non-payment by Purchaser of amounts due under this Agreement. Each Party shall immediately notify the other Party in writing of the existence of any such Lien following such Party’s discovery of same, and shall promptly (and in all events within thirty (30) days) cause the same to be discharged and released of record without cost to the other Party; provided, however, that each indemnifying Party has the right to contest any such Lien, so long as it provides a statutory bond or other reasonable assurances of payment that either removes such Lien from title to the affected property, or that assures that any adverse judgment with respect to such Lien shall be paid without affecting title to such property. ii.Lien Indemnity. Each Party shall indemnify the other Party from and against all claims, losses, damages, liabilities and expenses resulting from any Liens filed against such other Party’s property as a result of the indemnifying Party’s breach of its obligations under Section 7(f)(i).

8. Relocation of System. If, during the Term, Purchaser ceases to conduct operations at the Premises or vacates the Premises, the Premises have been destroyed, or the Purchaser is otherwise unable to continue to host the System or accept the electricity delivered by the System for any other reason (other than a Default Event by Seller), Purchaser shall propose in writing the relocation of the System, at Purchaser’s cost. Such proposal shall be practically feasible and preserve the economic value of this Agreement for Seller. The Parties shall seek to negotiate in good faith an agreement for the relocation of the System. Pending agreement on relocation of the System, Purchaser shall continue to make payments to Seller pursuant to Section 11(b)(i)(C).

9. Removal of System upon Termination or Expiration. Upon the expiration or earlier termination of this Agreement (provided Purchaser does not purchase the System pursuant to the terms and conditions of Section 14(b)), Seller shall, at its expense (unless expressly provided otherwise in this Agreement), cause to be removed all of the tangible property comprising the System from the Premises with a targeted completion date that is no later than one hundred and eighty (180) days after the expiration of the Term. The portion of the Premises where the System is located shall be returned to substantially its original condition as is reasonably possible, except for ordinary wear and tear, including the removal of System mounting pads or other support structures, and repair and restoration of the roof and the roof membrane. Seller is required to cause to be repaired any and all damage to the Premises caused by removal of the System. Notwithstanding the foregoing, Seller shall not be obligated to remove or cause to be removed any support structures for the System which are affixed to and below the exposed surface of Purchaser’s

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structures or any below grade structures, including foundations and conduits, or any roads. If the System is installed on the roof of an Improvement, Seller’s warranties under Section 12(c)(i) shall apply, as applicable. Purchaser must provide sufficient access, space and cooperation as reasonably necessary to facilitate System removal. Purchaser shall comply with Section 7(c) and Section 13 until removal is complete. If Seller fails to cause the removal of the System within one hundred and eighty (180) days after expiration of the Term, Purchaser may, at its option, remove the System to a public warehouse and restore the Premises to its original condition (other than ordinary wear and tear) at Seller’s cost, provided that if Seller pays Purchaser for such costs, Seller shall not be liable to Purchaser for a Default Event by Seller.

10. Measurement.
a. Meter. The System’s electricity output during the Term shall be measured by Seller’s meter, which shall be a revenue grade meter that meets ANSI-C12.20 standards for accuracy (the “Meter”). Purchaser shall have access to the metered energy output data via the monitoring system caused to be installed and maintained by Seller as part of the System. b. Meter Calibration. Seller shall cause the Meter to be calibrated in accordance with manufacturer’s recommendations.

Notwithstanding the foregoing, Purchaser may install, or cause to be installed, its own revenue-grade meter at the same location as the Meter. If there is a discrepancy between the data from Purchaser’s meter and the data from the Meter of greater than two percent (2%) over the course of a Contract Year, then Purchaser may request that Seller calibrate the Meter at Seller’s cost.
c. Internet Connection. At all times during the Term, Purchaser shall maintain and make available, at Purchaser’s cost:
i. A hard-wired ethernet port for connection to System equipment located within fifty (50) physical feet of the electrical room of the Premises; or, if such hard-wired port is not feasible, Wi-Fi available seven (7) days per week and twenty-four (24) hours per day;
ii. Information technology support services as needed to provide Internet connectivity via the connection described in Section 10(c)(i); and
iii. A dedicated IP address for System equipment.

If Purchaser does not maintain such Internet connection described above, Seller will not be able to cause the System to be monitored or provide the performance guaranty set forth on Exhibit 4. Further, if Seller is not able to monitor the System, Seller will be required to estimate the System’s power production for purposes of determining the monthly payment(s) for any such month in which the required Internet connection was not available.

11. Default, Remedies and Damages.
a. Default. Any Party that fails to perform its responsibilities as listed below or experiences any of the circumstances listed below is deemed a “Defaulting Party”, the other Party is the “Non-Defaulting Party” and each of the following is a “Default Event”:
i. failure of a Party to pay any amount due and payable under this Agreement, other than an amount that is subject to a good faith dispute, within ten (10) days following receipt of written notice from the Non-Defaulting Party of such failure to pay (“Payment Default”);
ii. failure of a Party to perform any material obligation under this Agreement or an act or omission of a Party in violation of the terms and conditions of this Agreement not addressed elsewhere in this Section 11 within sixty (60) days following receipt of written notice from the Non-Defaulting Party demanding such cure; provided, that if the Default Event cannot reasonably be cured within sixty (60) days and the Defaulting Party has demonstrated prior to the end of that period that it is diligently pursuing such cure, the cure period will be extended for a further reasonable period of time, not to exceed ninety (90) days; iii. such Party fails to provide or maintain in full force and effect any required insurance, if such failure is not remedied within ten (10) business days after receipt of written notice from the Non-Defaulting Party to the Defaulting Party;
iv. any representation or warranty given by a Party under this Agreement was incorrect in any material respect when made and is not cured within thirty (30) days following receipt of written notice from the Non-Defaulting Party demanding such cure;

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v. a Party becomes insolvent or is a party to a bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or any general assignment for the benefit of creditors or other similar arrangement or any event occurs or proceedings are taken in any jurisdiction with respect to the Party which has a similar effect (or, if any such actions are initiated by a third party, such action(s) is (are) not dismissed within sixty (60) days); or,
vi. in the case of Purchaser as the Defaulting Party only, Purchaser (A) loses its rights to occupy and enjoy the Premises, unless the Parties agree upon a relocation under Section 8 above; (B) loses its right to provide access to the System or is otherwise in default under Section 7(a); or (C) prevents Seller from performing any material obligation under this Agreement unless such action by Purchaser is (x) permitted under this Agreement, or (y) cured within ten (10) days after written notice thereof from Seller. b. Remedies.
i.Purchaser Default Event Remedies. Upon the occurrence and during the continuation of a Default Event where the Purchaser is the Defaulting Party, including a Payment Default:

A. Seller may exercise any and all remedies available or granted to it pursuant to law or hereunder, including seeking by mandamus or other suit, action or proceeding at law or in equity to enforce the Seller’s rights against the Purchaser, including rights to any payments due hereunder in an action for damages, and to compel the Purchaser to perform and carry out its duties and obligations under the law and its covenants and agreements with the Seller as provided herein.

B. Seller may suspend performance of its obligations under this Agreement, including, but not limited to, turning off the System, until the earlier to occur of (x) the date that Purchaser cures the Default Event in full, including making payment in full as provided in Section 11(b)(i)(C), or (y) the termination date of this Agreement. Seller’s rights under this Section 11(b)(i)(B) are in addition to any other remedies available to it under this Agreement, at law or in equity.

C. Except as otherwise provided herein, this Agreement shall not terminate as a result of such Default Event and shall continue in full force and effect, and Purchaser shall continue to pay, and Seller shall be entitled to recover payment for: (x) all electricity delivered by Seller pursuant to Section 3 of this Exhibit 3, and (y) all electricity that Seller reasonably estimates it would have been able to deliver to Purchaser in accordance with this Agreement but for the Default Event by Purchaser, in each case at the Contract Price, together with (z) any other amounts due and payable pursuant to this Agreement. ii.Seller Default Event Remedies. Upon the occurrence and during the continuation of a Default Event where Seller is the Defaulting Party:

A. Purchaser may exercise any and all remedies available or granted to it pursuant to law or hereunder, including seeking by mandamus or other suit, action or proceeding at law or in equity to enforce the Purchaser’s rights against the Seller, including rights to any payments due hereunder in an action for damages, and to compel the Seller to perform and carry out its duties and obligations under the law and its covenants and agreements with the Purchaser as provided herein.

B. except as otherwise provided herein, this Agreement shall not terminate as a result of such Default Event and shall continue in full force and effect, and Seller and Purchaser shall continue to pay all amounts due and payable pursuant to this Agreement.
iii.Optional Termination by Purchaser. In addition to the remedies provided for in Section 11(b)(ii), upon the occurrence and during the continuation of a Default Event where Seller is the Defaulting Party, the Purchaser may terminate this Agreement as further set forth in this Section 11(b)(iii) by providing thirty (30) days prior written notice to the Seller; provided, that, in the case of a Default Event under Section 11(a)(v) where the Seller is the Defaulting Party, no such notice period shall be required. Upon termination pursuant to this Section 11(b)(iii), Seller shall pay to Purchaser an amount equal to the sum of (A) the present value of the excess, if any, of the reasonably expected cost of electricity delivered by the Utility over the Contract Price for the reasonably expected production of the System for a period of the lesser of five (5) years or the remainder of the Initial Term or the then current Additional Term, as applicable; (B) all direct costs reasonably incurred by Purchaser by reason of the termination; and (C) any and all other amounts previously accrued under this Agreement and then owed by Seller to Purchaser (the “Seller Termination Payment”). The Seller Termination Payment determined under this Section 11(b)(iii) cannot be less than zero.

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iv.Optional Termination by Seller. In addition to the remedies provided for in Section 11(b)(i), upon the occurrence and during the continuation of a Default Event where Purchaser is the Defaulting Party, the Seller may terminate this Agreement as further set forth in this Section 11(b)(iv) by providing thirty (30) days prior written notice to the Purchaser; provided, that, in the case of a Default Event under Section 11(a)(v) where the Purchaser is the Defaulting Party, no such notice period shall be required. Upon termination pursuant to this Section 11(b)(iv), Purchaser shall pay to Seller an amount equal to the sum of (1) the applicable amount set forth in the Termination Payment Schedule of Section 6 of Exhibit 1, and (2) any other amounts previously accrued under this Agreement and then owed by Purchaser to Seller (collectively, the “Purchaser Termination Payment” and, together with the Seller Termination Payment, the “Termination Payment”). The Purchaser Termination Payment determined under this Section 11(b)(iv) cannot be less than zero. v.Severability of Remedies. If any remedy in Section 11(b) is held by a court of competent jurisdiction to be in conflict with any statute, constitutional provision, regulation or other rule of law, or is otherwise held to be unenforceable for any reason whatsoever, such circumstances shall not have the effect of rendering the other remedies herein contained invalid, inoperative, or unenforceable to any extent whatsoever. If any one or more of the provisions contained in Section 11(b) of this Exhibit 3 shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Section 11(b) and such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein. The Parties hereby declare that they each would have executed this Agreement and each and every other section hereof irrespective of the fact that any one or more sections of this Section 11(b) may be held illegal, invalid or unenforceable. vi.Liquidated Damages. The Parties agree that, if Seller terminates this Agreement prior to the expiration of the Term pursuant to Section 11(b)(iv), actual damages would be difficult to ascertain, and the Purchaser Termination Payment determined in accordance with Section 11(b)(iv) is a reasonable approximation of the damages suffered by Seller as a result of early termination of this Agreement and is not a penalty. c. Obligations Following Termination. If a Party terminates this Agreement pursuant to Section 11(b)(iii), or Section 11(b)(iv), then following such termination, Seller shall cause and shall have the right to cause the equipment constituting the System to be removed in compliance with Section 9 at the sole cost and expense of the Defaulting Party, provided, however that Seller shall not be required to cause the System to be removed following the occurrence of a Default Event by Purchaser, unless Purchaser has paid the Purchaser Termination Payment to Seller or pre-pays the cost of removal and restoration reasonably estimated by Seller. i.Reservation of Rights. Except in the case of a termination under Section 11(b)(iii) or Section 11(b)(iv) and payment of a Termination Payment, if any, determined as provided therein, nothing in this Section 11 limits either Party’s right to pursue any remedy under this Agreement, at law or in equity, including with respect to the pursuit of an action for damages by reason of a breach or Default Event under this Agreement. ii.Mitigation Obligation. Regardless of whether this Agreement is terminated for a Default Event, the Non- Defaulting Party must make reasonable efforts to mitigate its damages as the result of such Default Event; provided that such obligation shall not reduce Purchaser’s obligation to pay the full Purchaser Termination Payment set forth in Section 6 of Exhibit 1 following a Default Event by Purchaser. iii.No Limitation on Payments. Nothing in this Section 11 excuses a Party’s obligation to make any payment when due under this Agreement, including with respect to payments for electricity that would have been delivered to Purchaser but for a Purchaser breach or Default Event.

12. Representations and Warranties.
a. General Representations and Warranties. Each Party represents and warrants to the other the following:
i. Such Party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation; the execution, delivery and performance by such Party of this Agreement have been duly authorized by all necessary governmental action, and do not and will not violate any law; and this Agreement is the valid obligation of such Party, enforceable against such Party in accordance with its terms (except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws now or hereafter in effect relating to creditors’ rights generally).

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ii. Such Party has obtained all licenses, authorizations, consents and approvals required by applicable law and any Governmental Authority or other third-party and necessary for such Party to own its assets, carry on its business and operations and to execute and deliver this Agreement; and such Party is in compliance with all laws that relate to this Agreement in all material respects.
b. Purchaser’s Representations and Warranties. Purchaser represents and warrants to Seller the following:
i.Licenses. (A) Purchaser has title to and is the fee owner of the Premises such that Purchaser has the full right, power and authority to enter into and perform all of its obligations under this Agreement, (B) this Agreement does not violate any law, ordinance, rule or other governmental restriction applicable to Purchaser or the Premises and is not inconsistent with and will not result in a breach or default under any agreement by which Purchaser is bound or that affects the Premises, and (C) there are no deeds of trust, mortgages or similar security instruments with a lien against the Premises.
ii.Other Agreements. Neither the execution and delivery of this Agreement by Purchaser nor the performance by Purchaser of any of its obligations under this Agreement conflicts with or will result in a breach or default under any agreement or obligation to which Purchaser is a party or by which Purchaser is bound. iii.Accuracy of Information. All information provided by Purchaser to Seller, as it pertains to (A) the Premises, (B) the Improvements on which the System is to be installed, if applicable, (C) Purchaser’s planned use of the Premises and any applicable Improvements, and (D) Purchaser’s estimated electricity requirements, is accurate in all material respects.
iv.Purchaser Status. Purchaser is not a public utility or a public utility holding company and is not subject to regulation as a public utility or a public utility holding company. v.Limit on Use. No portion of the electricity generated by the System shall be used to heat a swimming pool. c. Seller’s Warranties.
i. If Seller causes to be penetrated the roof of any Improvement on which the System is installed, during System installation or any System repair, Seller shall provide for a warranty on roof damage caused by these roof penetrations and shall repair such damage at Seller’s expense. Seller’s roof warranty shall terminate upon the earlier of (A) five (5) years following the Commercial Operation Date and (B) the expiration of the warranty applicable to such roof provided by Purchaser’s roofing contractor that is effective as of the Effective Date (“Existing Roof Warranty”). If there is an Existing Roof Warranty, Purchaser shall provide it to Seller, and Seller shall ensure that the construction, operation, maintenance and removal of the System conforms to the requirements of the Existing Roof Warranty to the extent such Existing Roof Warranty is in effect. ii. If Seller or its agents damage any other part of the Premises or any Improvement (including roof damages not covered under Section 12(c)(i) above), Seller shall repair or reimburse Purchaser for such damage, as agreed by the Parties and subject to Section 15.
d. NO OTHER WARRANTY. THE WARRANTIES SET FORTH IN SECTIONS 12(a) AND 12(c) OF THIS AGREEMENT ARE PURCHASER’S SOLE AND EXCLUSIVE BASIS FOR ANY CLAIM OR LIABILITY ARISING OUT OF OR IN CONNECTION WITH THIS SECTION 12, WHETHER ARISING IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE. OTHER THAN AS EXPRESSLY SET FORTH IN SECTIONS 12(a) AND 12(c), NO WARRANTY, WHETHER STATUTORY, WRITTEN, ORAL,

EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY

AND FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE, APPLIES UNDER THIS AGREEMENT. THE PERFORMANCE GUARANTY SET FORTH IN EXHIBIT 4 REPRESENTS A SEPARATE CONTRACT BETWEEN PURCHASER AND THE ISSUER OF THE PERFORMANCE GUARANTY. IF THE ISSUER OF THE PERFORMANCE GUARANTY (OR

ANY SUBSEQUENT ASSIGNEE) AND THE SELLER ARE NOT THE SAME PERSON, NO RIGHTS

PROVIDED TO PURCHASER BY THE PERFORMANCE GUARANTY MAY BE ASSERTED UNDER THIS AGREEMENT, AND NO CLAIM UNDER THE PERFORMANCE GUARANTY WILL AFFECT PURCHASER’S OBLIGATIONS UNDER THIS AGREEMENT.

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13. Insurance.
a. Insurance Coverage. At all times during the Term, the Parties shall maintain the following insurance, as applicable:
i. Seller’s Insurance. Seller shall maintain (A) property insurance on the System for the replacement cost thereof, (B) commercial general liability, employers liability and automobile liability insurance with primary coverage of at least $1,000,000 per occurrence, an excess liability limit of $5,000,000, for a total of $6,000,000 in the aggregate, and (C) workers’ compensation insurance as required by law. Seller’s coverage may be provided as part of an enterprise insurance program.
ii. Purchaser’s Insurance. Purchaser shall maintain commercial general liability insurance with coverage of at least $2,000,000 per occurrence.
b. Policy Provisions. The insurance policies referenced in Section 13(a) shall (i) contain a provision whereby the insurer agrees to give the other Party at least thirty (30) days (ten (10) days for non-payment of premiums) written notice before the insurance is cancelled, or terminated, (ii) be written on an occurrence basis, and (iii) be maintained with companies either rated no less than A-VII as to Policy Holder’s Rating in the current edition of A.M. Best’s Insurance Guide or otherwise reasonably acceptable to the other Party. c. Certificates. Upon the other Party’s request, each Party shall deliver to the other Party certificates of insurance evidencing the above required coverage. A Party’s receipt, review or acceptance of such certificate shall in no way limit or relieve the other Party of the duties and responsibilities to maintain insurance as set forth in this Agreement. d. Deductibles. Each Party shall pay or cause to be paid its own insurance deductibles, except in the case of claims (i) resulting from a breach of this Agreement, in which case the breaching Party is responsible for payment of the non- breaching Party’s deductible for any responding insurance, and (ii) covered by an indemnity set forth in this Agreement.

14. Ownership; Option to Purchase.
a. Ownership of System.
i.Ownership; Personal Property. System Owner or its assignee shall be the legal and beneficial owner of the System and the System will remain the personal property of System Owner or such assignee and will not attach to or be deemed a part of, or fixture to, the Premises or any Improvement on which the System is installed.

Each of the Seller and Purchaser agree that System Owner or its assignee is the tax owner of the System and all tax filings and reports shall be filed in a manner consistent with this Agreement. The System will at all times retain the legal status of personal property as defined under Article 9 of the Uniform Commercial Code. ii.Notice to Purchaser Lienholders. Purchaser shall use reasonable efforts to place all parties having a Lien on the Premises or any Improvement on which the System is installed on notice of the ownership of the System and the legal status or classification of the System as personal property. If any mortgage or fixture filing against the Premises could reasonably be construed as prospectively attaching to the System as a fixture of the Premises, Purchaser shall provide a disclaimer or release from such lienholder. iii.Fixture Disclaimer. Purchaser consents to the filing of a disclaimer of the System as a fixture of the Premises in the office where real estate records are customarily filed in the jurisdiction where the Premises are located.

If, at any point after the Effective Date, Purchaser is not the fee owner of the Premises, Purchaser shall obtain such consent from such fee owner. For the avoidance of doubt, in either circumstance Seller has the right to file such disclaimer.
iv.SNDA. Upon request, Purchaser shall deliver to Seller a subordination and non-disturbance agreement in a form mutually acceptable to Seller and Purchaser, any mortgagee with a Lien on the Premises, and other Persons holding a similar interest in the Premises.
v.Eviction Notice. Purchaser hereby represents and warrants that it is the legal owner of the Premises. To the extent that Purchaser does not own the Premises or any Improvement on which the System is installed after the Effective Date, Purchaser shall provide to Seller immediate written notice of any such change in ownership and receipt of notice of eviction from the Premises or applicable Improvement or termination of Purchaser’s lease of the Premises and/or Improvement.

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b. Option to Purchase.
i. Early Purchase Option. Commencing on the next date after the date that is the sixth (6th) anniversary of the Commercial Operation Date, and continuing for a period of two hundred and seventy (270) days (the “Early Purchase Option Period”), so long as Purchaser is not in default under this Agreement, Purchaser may exercise an option to purchase the System from System Owner on any such date within the Early Purchase Option Period for a purchase price equal to the greater of (A) the Fair Market Value of the System, or (B) the year six (6) Termination Payment amount set forth in Section 6 of Exhibit 1. Purchaser shall exercise the option in this Section 4(b)(i) by providing System Owner with written notice. ii. Exercise of Option. At the end of the Initial Term and each Additional Term, so long as Purchaser is not in default under this Agreement, Purchaser may purchase the System from System Owner on any such date for a purchase price equal to the Fair Market Value of the System applicable as of the date of the transfer of title to the System (“End of Term Option to Purchase”). Purchaser shall notify Seller in writing of its intent to purchase at least ninety (90) days and not more than one hundred eighty (180) days prior to the end of the Initial Term or Additional Term, as applicable, and the purchase shall be completed prior to the end of the Initial Term or Additional Term, as applicable. For the avoidance of doubt, the End of Term Option to Purchase shall not apply prior to the expiration of the full Initial Term. iii. Fair Market Value. The “Fair Market Value” of the System shall be determined by mutual agreement of the Parties; provided, however, if the Parties cannot agree to a Fair Market Value within thirty (30) days after Purchaser has delivered to Seller a written notice of its intent to purchase the System, the Parties shall select a nationally recognized independent appraiser with experience and expertise in the solar photovoltaic industry to determine the Fair Market Value of the System. Such appraiser shall act reasonably and in good faith to determine the Fair Market Value of the System on an installed basis and shall set forth such determination in a written opinion delivered to the Parties. The valuation made by the appraiser will be binding upon the Parties in the absence of fraud or manifest error. The costs of the appraisal shall be borne by the Parties equally. iv. Title Transfer; Warranties; Manuals. If Purchaser exercises a purchase option pursuant to Sections 14(b)(i) or (ii) above, title to the System and manufacturers’ warranties shall transfer to Purchaser upon System Owner’s receipt of the purchase price and execution by System Owner and Purchaser of a written instrument or agreement to effect such transfer to be negotiated between System Owner and Purchaser. The System will be sold “as is, where is, with all faults.” Upon purchase of the System, Purchaser shall assume complete responsibility for the operation and maintenance of the System and liability for the performance of (and risk of loss for) the System, and, except for any Seller obligations that survive termination under Section 19(d), System Owner will have no further liabilities or obligations hereunder for the System.

15. Indemnification and Limitations of Liability.
a. General. Each Party (the “Indemnifying Party”) shall defend, indemnify and hold harmless the other Party, its affiliates and the other Party’s and its affiliates’ respective directors, officers, shareholders, partners, members, agents and employees (collectively, the “Indemnified Parties”), from and against any loss, damage, expense, liability and other claims, including court costs and reasonable attorneys’ fees (collectively, “Liabilities”) resulting from (i) any Claim (as defined in Section 15(c)) relating to the Indemnifying Party’s breach of any representation or warranty set forth in Section 12 and (ii) injury to or death of persons, and damage to or loss of property to the extent caused by or arising out of the negligent acts or omissions of, or the willful misconduct of, the Indemnifying Party (or its contractors, agents or employees) in connection with this Agreement; provided, however, that nothing herein will require the Indemnifying Party to indemnify the Indemnified Parties for any Liabilities to the extent caused by or arising out of the negligent acts or omissions of, or the willful misconduct of, an Indemnified Party. This Section 15(a) does not apply to Liabilities arising out of or relating to any form of Hazardous Substances or other environmental contamination, such matters being addressed exclusively by Section 15(d). b. Permission to Operate Indemnification. Purchaser shall defend, indemnify and hold harmless Seller Indemnified Parties from and against any Liabilities resulting from Purchaser’s breach of Purchaser’s obligations under Section 5e).
c. Notice and Participation in Third-Party Claims. The Indemnified Party shall give the Indemnifying Party written notice with respect to any liability asserted by a third-party (a “Claim”), as soon as possible upon the receipt of information of any possible Claim or of the commencement of such Claim. The Indemnifying Party may assume the

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defense of any Claim, at its sole cost and expense, with counsel designated by the Indemnifying Party and reasonably satisfactory to the Indemnified Party. The Indemnified Party may, however, select separate counsel if both Parties are defendants in the Claim and such defense or other form of participation is not reasonably available to the Indemnifying Party. The Indemnifying Party shall pay the reasonable attorneys’ fees incurred by such separate counsel until such time as the need for separate counsel expires. The Indemnified Party may also, at the sole cost and expense of the Indemnifying Party, assume the defense of any Claim if the Indemnifying Party fails to assume the defense of the Claim within a reasonable time. Neither Party may settle any Claim covered by this Section 15(c) unless it has obtained the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed. The Indemnifying Party has no liability under this Section 15(c) for any Claim for which such notice is not provided if the failure to give notice prejudices the Indemnifying Party. d. Environmental Indemnification.
i. Seller Indemnity. Seller shall indemnify, defend and hold harmless all of Purchaser’s Indemnified Parties from and against all Liabilities arising out of or relating to the existence at, on, above, below or near the Premises of any Hazardous Substance (as defined in Section 15(d)(iii)) to the extent deposited, spilled or otherwise caused by Seller or any of its contractors, agents or employees. ii. Purchaser Indemnity. Purchaser shall indemnify, defend and hold harmless all of Seller’s Indemnified Parties from and against all Liabilities arising out of or relating to the existence at, on, above, below or near the Premises of any Hazardous Substance, except (A) to the extent deposited, spilled or otherwise caused by Seller or any of its contractors, agents or employees or, (B) where the deposit, spill, or existence of the Hazardous Substance is not caused by Seller or any of its contractors or agents, to the extent the condition is known by Seller or any of its contractor or agents and is worsened as a result of the negligent acts or omissions, willful misconduct, or breach of this Agreement by Seller or any of its contractors, agents or employees. iii. Notice. Each Party shall promptly notify the other Party if it becomes aware of any Hazardous Substance on or about the Premises generally or any deposit, spill or release of any Hazardous Substance. “Hazardous Substance” means any chemical, waste or other substance (A) which now or hereafter becomes defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic pollutants,” “pollution,” “pollutants,” “regulated substances,” or words of similar import under any laws pertaining to the environment, health, safety or welfare, (B) which is declared to be hazardous, toxic, or polluting by any Governmental Authority, (C) exposure to which is now or hereafter prohibited, limited or regulated by any Governmental Authority, (D) the storage, use, handling, disposal or release of which is restricted or regulated by any Governmental Authority, or (E) for which remediation or cleanup is required by any Governmental Authority. e. Limitations on Liability.
i. No Consequential Damages. Except with respect to indemnification of third-party claims pursuant to Section 15, fraud or willful misconduct, neither Party nor its directors, officers, shareholders, partners, members, agents and employees subcontractors or suppliers will be liable for any indirect, special, incidental, exemplary, or consequential loss or damage of any nature (including, without limitation, lost revenues, lost profits, lost business opportunity or any business interruption) arising out of their performance or non-performance hereunder even if advised of such. Notwithstanding the previous sentence, the Termination Payment amounts set forth in Section 6 of Exhibit 1 shall be deemed to be direct, and not indirect or consequential damages for purpose of this Section 15(e)(i).
ii. Actual Damages. Except with respect to indemnification of Claims pursuant to this Section 15, and except as otherwise limited in Section 12(d), Seller’s aggregate liability under this Agreement arising out of or in connection with the performance or non-performance of this Agreement cannot exceed $1,000,000. The provisions of this Section 15(e)(ii) will apply whether such liability arises in contract, tort, strict liability or otherwise.
f. EXCLUSIVE REMEDIES. TO THE EXTENT THAT THIS AGREEMENT SETS FORTH SPECIFIC REMEDIES FOR ANY CLAIM OR LIABILITY, SUCH REMEDIES ARE THE AFFECTED PARTY’S SOLE AND

EXCLUSIVE REMEDIES FOR SUCH CLAIM OR LIABILITY, WHETHER ARISING IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.
g. Comparative Negligence. Where negligence is determined to have been joint, contributory or concurrent, each Party

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shall bear the proportionate cost of any liability.

16. Change in Law.
a. Impacts of Change in Law. If Seller determines that a Change in Law has occurred or will occur that has or will have a material adverse effect on Seller’s rights, entitlement, obligations or costs under this Agreement, then Seller may so notify the Purchaser in writing of such Change in Law. Within thirty (30) days following receipt by the Purchaser of such notice, the Parties shall meet and attempt in good faith to negotiate such amendments to this Agreement as are reasonably necessary to preserve the economic value of this Agreement to both Parties. If the Parties are unable to agree upon such amendments within such thirty (30) day period, then Seller may terminate this Agreement and cause the System to be removed and the Premises to be restored in accordance with Section 9 without either Party having further liability under this Agreement except with respect to liabilities accrued prior to the date of termination. b. Illegality or Impossibility. If a Change in Law renders this Agreement, or Seller’s performance of this Agreement, either illegal or impossible, then Seller may terminate this Agreement immediately upon notice to Purchaser without either Party having further liability under this Agreement except with respect to liabilities accrued prior to the date of termination.
c. “Change in Law” means (i) the enactment, adoption, promulgation, modification or repeal after the Effective Date of any applicable law or regulation, (ii) the imposition of any material conditions on the issuance or renewal of any applicable permit after the Effective Date (notwithstanding the general requirements contained in any applicable Permit at the time of application or issue to comply with future laws, ordinances, codes, rules, regulations or similar legislation), or (iii) a change in any utility rate schedule or tariff approved by any Governmental Authority that materially alters the financial obligations of Seller under this Agreement.

17. Assignment and Financing.
a. Assignment.
i. Restrictions on Assignment. Subject to the remainder of this Section 17(a), this Agreement may not be assigned in whole or in part by either Party without the prior written consent of the other Party, which consent may not be unreasonably withheld or delayed. Purchaser may not withhold its consent to an assignment proposed by Seller where the proposed assignee has the financial capability and experience necessary to operate and maintain solar photovoltaic systems such as the System in accordance with prudent solar industry practices in the State of California.
ii. Permitted Assignments. Notwithstanding Section 17(a)(i), Seller may, without the prior written consent of Purchaser, assign, mortgage, pledge or otherwise directly or indirectly assign its interests in this Agreement to (A) any Financing Party (as defined in Section 17(b)), (B) any entity through which Seller is obtaining financing from a Financing Party, or (C) any affiliate of Seller or any person succeeding to all or substantially all of the assets of Seller; provided, that, the assignment does not negatively affect the terms of this Agreement or Seller’s ability to perform hereunder or thereunder. Seller is not released from liability hereunder as a result of any assignment to an affiliate unless the assignee assumes Seller’s obligations hereunder by binding written instrument.
iii. Successors and Permitted Assignees. This Agreement is binding on and inures to the benefit of successors and permitted assignees. The restrictions on assignment contained herein do not prohibit or otherwise limit changes in control of Seller.
b. Financing. The Parties acknowledge that Seller and/or System Owner may obtain debt or equity financing or other credit support from lenders, investors or other third parties (each, a “Financing Party”) in connection with the installation, construction, ownership, operation and maintenance of the System. In furtherance of Seller’s and/or System Owner’s financing arrangements and in addition to any other rights or entitlements of Seller or System Owner’s under this Agreement, Purchaser shall timely execute any consents to assignment (which may include notice, cure, attornment and step-in rights) or estoppels and negotiate any amendments to this Agreement that may be reasonably requested by Seller and/or System Owner or the Financing Parties; provided, that such estoppels, consents to assignment or amendments do not alter the fundamental economic terms of this Agreement. c. Termination Requires Consent. Seller and Purchaser agree that any right of Seller to terminate this Agreement is

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Exh. 3, p. 16
subject to the prior written consent of any Financing Party.

18. Confidentiality.
a. Confidential Information. To the maximum extent permitted by applicable law, if either Party provides confidential information (“Confidential Information”) to the other or, if in the course of performing under this Agreement or negotiating this Agreement a Party learns Confidential Information of the other Party, the receiving or learning Party shall (i) protect the Confidential Information from disclosure to third parties with the same degree of care accorded its own confidential and proprietary information, and (ii) refrain from using such Confidential Information, except in the negotiation, performance, enforcement and, in the case of Seller, financing, of this Agreement. b. Permitted Disclosures. Notwithstanding Section 18(a):
i. A Party may provide such Confidential Information to its affiliates and to its and its affiliates’ respective officers, directors, members, managers, employees, agents, contractors, consultants and Financing Parties (collectively, “Representatives”), and potential direct or indirect assignees of this Agreement if such potential assignees are first bound by a written agreement or legal obligation restricting use and disclosure of Confidential Information.

Each Party is liable for breaches of this provision by any person to whom that Party discloses Confidential Information.
ii. Confidential Information does not include any information that (A) becomes publicly available other than through breach of this Agreement, (B) is required to be disclosed to a Governmental Authority under applicable law or pursuant to a validly issued subpoena, (C) is independently developed by the receiving Party, or (D) becomes available to the receiving Party without restriction from a third party under no obligation of confidentiality. If disclosure of information is required by a Governmental Authority, the disclosing Party shall, to the extent permitted by applicable law, notify the other Party of such required disclosure promptly upon becoming aware of such required disclosure and shall reasonably cooperate with the other Party’s efforts to limit the disclosure to the extent permitted by applicable law. Notwithstanding any other provision in this Agreement, Seller and its affiliates are permitted to provide Confidential Information to the Internal Revenue Service and the United States Department of Treasury with respect to Seller satisfying the requirements for and obtaining the Elective Payment Incentive.
iii. Each Party hereto acknowledges and agrees that this Agreement and information and documentation provided in connection with this Agreement may be subject to the California Public Records Act (Government Code Section 7920.000 et seq.). Upon request or demand from any third person not a Party to this Agreement for production, inspection and/or copying of Confidential Information, the recipient of such request or demand shall, to the extent permissible, notify the other Party in writing in advance of any disclosure that the request or demand has been made and shall take all reasonably necessary and customary steps to protect Confidential Information that is the subject of any California Public Records Act request submitted by a third person to Purchaser, including, but not limited to, applicable exceptions described by Cal. Gov’t Code Section 7922.000. iv. A Party may be required to make this Agreement or portions of this Agreement available to the public in connection with the process of seeking approval from its respective governing board of its entry into this Agreement.
v. Confidential Information may be disclosed by either Party to any nationally recognized credit rating agency (e.g., Moody’s Investors Service, Standard & Poor’s, or Fitch Ratings) in connection with the issuance of a credit rating for that Party, provided that any such credit rating agency agrees in writing to maintain the confidentiality of such Confidential Information.
c. Miscellaneous. All Confidential Information remains the property of the disclosing Party and will be returned to the disclosing Party or destroyed (at the receiving Party’s option) after the receiving Party’s need for it has expired or upon the request of the disclosing Party. Each Party acknowledges that the disclosing Party would be irreparably injured by a breach of this Section 18 by the receiving Party or its Representatives or other person to whom the receiving Party discloses Confidential Information of the disclosing Party and that the disclosing Party may be entitled to equitable relief, including injunctive relief and specific performance, for breaches of this Section 18. To the fullest extent permitted by applicable law, such remedies shall not be deemed to be the exclusive remedies for a breach of this Section 18, but will be in addition to all other remedies available at law or in equity. The obligation of confidentiality will survive termination of this Agreement for a period of two (2) years.

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Exh. 3, p. 17
d. Goodwill and Publicity. Neither Party may (i) make any press release or public announcement of the specific terms of this Agreement or the use of solar or renewable energy involving this Agreement (except for filings or other statements or releases as may be required by applicable law), or (ii) use any name, trade name, service mark or trademark of the other Party in any promotional or advertising material without the prior written consent of the other Party which consent shall not be unreasonably withheld. The Parties shall coordinate and cooperate with each other when making public announcements regarding this Agreement, the System and its use, and each Party may promptly, and in any case within fourteen (14) days, review, comment upon and approve any publicity materials, press releases or other public statements before they are made. Notwithstanding the above, Seller is entitled to publish the name of Purchaser, System location, System size without obtaining the prior, written consent of Purchaser and to place signage on the Premises reflecting its association with the System.

19. General Provisions.
a. Definitions and Interpretation. Unless otherwise defined or required by the context in which any term appears: (i) the singular includes the plural and vice versa, (ii) the words “herein,” “hereof” and “hereunder” refer to this Agreement as a whole and not to any particular section or subsection of this Agreement, (iii) references to any agreement, document or instrument mean such agreement, document or instrument as amended, restated, modified, supplemented or replaced from time to time, and (iv) the words “include,” “includes” and “including” mean include, includes and including “without limitation.” The captions or headings in this Agreement are strictly for convenience and will not be considered in interpreting this Agreement. As used in this Agreement, “dollar” and the “$” sign refer to United States dollars.
b. Choice of Law; Dispute Resolution. This Agreement and the rights and duties of the Parties hereunder shall be governed by and construed, enforced and performed in accordance with the laws of the State of California, without regard to principles of conflict of laws. In the event of a dispute, controversy, or claim arising out of or relating to this Agreement, the Parties shall confer and attempt to resolve such matter informally. If such dispute or claim cannot be resolved in this matter, then the dispute or claim shall be referred first to executive officers of the Parties for their review and resolution. If the dispute or claim still cannot be resolved by such officers, then any dispute arising out of this Agreement shall be venued either in the San Mateo County Superior Court or in the United States District Court for the Northern District of California. The prevailing Party in any dispute arising out of this Agreement is entitled to reasonable attorneys’ fees and costs.
c. Notices. All notices under this Agreement shall be in writing and delivered by hand, electronic mail, overnight courier, or regular, certified, or registered mail, return receipt requested, and will be deemed received upon personal delivery, acknowledgment of receipt of electronic transmission, the promised delivery date after deposit with overnight courier, or five (5) days after deposit in the mail. Notices must be sent to the person identified in this Agreement at the addresses set forth in this Agreement or such other address as either Party may specify in writing. d. Survival. Section 6 of Exhibit 1, and Sections 3, 4, 5(c), 7(a), (c) and (f), 9, 11, 12(c), 14, 15, 17, 18 and 19 of this Exhibit 3 shall survive termination of this Agreement.
e. Further Assurances. Each Party shall provide such information, execute and deliver any instruments and documents and to take such other actions as may be reasonably requested by the other Party to give full effect to this Agreement and to carry out the intent of this Agreement.
f. Waivers. No provision or right or entitlement under this Agreement may be waived or varied except in writing signed by the Party to be bound. No waiver of any of the provisions of this Agreement will constitute a waiver of any other provision, nor will such waiver constitute a continuing waiver unless otherwise expressly provided. g. Non-Dedication of Facilities. Nothing in this Agreement may be construed as the dedication by either Party of its facilities or equipment to the public or any part thereof. Neither Party may knowingly take any action that would subject the other Party, or other Party’s facilities or equipment, to the jurisdiction of any Governmental Authority as a public utility or similar entity. Neither Party may assert in any proceeding before a court or regulatory body that the other Party is a public utility by virtue of such other Party’s performance under this Agreement. If Seller is reasonably likely to become subject to regulation as a public utility, then the Parties shall use reasonable efforts to restructure their relationship under this Agreement in a manner that preserves their relative economic interests while ensuring that Seller does not become subject to any such regulation. If the Parties are unable to agree upon such restructuring, Seller may terminate this Agreement without further liability under this Agreement except with respect to liabilities accrued prior to the date of termination and remove the System in accordance with Section 9.

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h. Service Contract. The Parties intend this Agreement to be a “service contract” within the meaning of Section 7701(e)(3) of the Code. Purchaser shall not take the position on any tax return or in any other filings suggesting that it is anything other than a purchase of electricity from the System. i. No Partnership. No provision of this Agreement may be construed or represented as creating a partnership, trust, joint venture, fiduciary or any similar relationship between the Parties. No Party is authorized to act on behalf of the other Party, and neither may be considered the agent of the other. j. Entire Agreement, Modification, Invalidity, Captions. This Agreement constitutes the entire agreement of the Parties regarding its subject matter and supersedes all prior proposals, agreements, or other communications between the Parties, oral or written. This Agreement may be modified only by a writing signed by both Parties. k. Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be in conflict with any statute, constitutional provision, regulation or other rule of law, or is otherwise held by such court to be unenforceable for any reason whatsoever, such provision shall not be read to render and shall not have the effect of rendering this Agreement or the other provisions herein unenforceable, inoperative or invalid to any extent whatsoever.

In such event, such provision shall be deemed severable from the remaining provisions of this Agreement and such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein. l. No Third-Party Beneficiaries. Except as otherwise expressly provided herein, this Agreement and all rights hereunder are intended for the sole benefit of the Parties hereto, and the Financing Parties to the extent provided herein or in any other agreement between a Financing Party and Seller or Purchaser, and do not imply or create any rights on the part of, or obligations to, any other Person.
m. Counterparts. This Agreement may be executed in any number of separate counterparts and each counterpart will be considered an original and together comprise the same Agreement. n. Electronic Signatures. If the Parties agree, electronic signatures may be used in place of original signatures on this Agreement. Each Party intends to be bound by the signatures on the electronic document, is aware that the other Party will rely on the electronic signatures, and hereby waives any defenses to the enforcement of the terms of this Agreement based on the use of an electronic signature. After both Parties agree to the use of electronic signatures, both Parties must sign the document electronically.
o. No Recourse to Members of Seller. Seller is organized as a Joint Powers Authority in accordance with the Joint Exercise of Powers Act of the State of California (Government Code Section 6500, et seq.) pursuant to its Joint Powers Agreement and is a public entity separate from its constituent members. Seller shall solely be responsible for all debts, obligations and liabilities accruing and arising out of this Agreement. Purchaser shall have no rights and shall not make any claims, take any actions or assert any remedies against any of Seller’s constituent members, or the employees, directors, officers, consultants or advisors of Seller or of its constituent members, in connection with this Agreement.

End of Exhibit 3

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Exhibit 4
Performance Guaranty
In consideration for Purchaser’s entering into the Solar Power Purchase Agreement between Peninsula Clean Energy Authority (“Seller”) and the Purchaser related to the System at the Premises (the “PPA”), this Performance Guaranty (this “Guaranty”) is entered into by the parties listed below (each a “Party” and collectively the “Parties”) as of the date signed by Guarantor below (the “Effective Date”).

Purchaser: Guarantor:

Name and Address City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403
Name and Address Peninsula Clean Energy Authority
2075 Woodside Rd.

Redwood City, CA 94061
Attention: Rafael Reyes,
Director of Programs
Phone 650-522-7210 Phone (650) 260-0087
E-mail [email protected] E-mail [email protected] Project Name Beresford Rec Center
This Guaranty sets forth the terms and conditions of a guaranty provided by Guarantor in conjunction with the PPA. Capitalized terms not otherwise defined herein have the meanings given such terms in the PPA. The term of this Guaranty will be concurrent with the term of the PPA, except that it will not exceed the Initial Term. This Guaranty will be updated by Guarantor to reflect the as-built specifications of the System.

1.Guaranty. Guarantor guarantees that during the Initial Term of the PPA the System will generate not less than ninety five percent (95%) of the estimated generation of the System based on Helioscope or PVSyst (“Estimated Production (Annual kWh)”) as set forth in Table 1.A below (such guaranteed generation, the “Guaranteed Production (Annual kWh)” set forth on Table 1.A below); provided that the Guaranteed Production values are subject to reasonable downward adjustment for extreme weather conditions and to the extent that Purchaser exceeds the Outage Allowance set forth in Exhibit 3, Section 6(d) of the PPA.

A. Guarantor will use local weather data to adjust the System’s Guaranteed kWh, based on the following methods if available and in descending order of preference: (i) satellite data provided by a third-party vendor of Seller; or (ii) available data from a locally installed weather station at the Premises owned and properly maintained by Purchaser.

Table 1.A, projected production values assuming average weather conditions:

Contract Year Estimated Production (Annual kWh) Guaranteed Production (Annual kWh) Year 1 117,645 111,763
Year 2 117,057 111,204
Year 3 116,471 110,648
Year 4 115,889 110,095
Year 5 115,310 109,544
Year 6 114,733 108,996
Year 7 114,159 108,452
Year 8 113,589 107,909
Year 9 113,021 107,370
Year 10 112,456 106,833
Year 11 111,893 106,299
Year 12 111,334 105,767
Year 13 110,777 105,238
Year 14 110,223 104,712
Year 15 109,672 104,189
Year 16 109,124 103,668
Year 17 108,578 103,149

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Year 18 108,035 102,634
Year 19 107,495 102,120
Year 20 106,958 101,610
B. If at the end of each successive Contract Year the AC electricity produced by the System as measured and recorded by Seller (the “Actual kWh”) is less than the Guaranteed kWh for that Contract Year, then Guarantor shall pay Purchaser an amount equal to (i) the difference between the Guaranteed kWh and the Actual kWh, multiplied by (ii) the Performance Guarantee Payment Rate (as defined in Section 1(E)), in each case with respect to the affected Contract Year.

C. If at the end of each successive Contract Year the AC electricity produced by the System as measured and recorded by Seller (the “Actual kWh”) is more than the Guaranteed kWh for that Contract Year, then an amount equal to (i) the difference between the Actual kWh and the Guaranteed kWh, multiplied by (ii) the Performance Guarantee Payment Rate, in each case with respect to the affected Contract Year, shall be credited against and shall reduce by such amount any payments owed by Guarantor to Purchaser in the following Contract Year pursuant to Section 1(B) of this Exhibit 4. The amount under Section 1(C)(i) above shall be capped at one hundred and five percent (105%) of the Guaranteed kWh for the applicable Contract Year.

D. If a payment of greater than fifty dollars ($50) is due under Section 1(B), after subtracting any credits pursuant to Section 1(C), (i) Guarantor will deliver a statement to Purchaser detailing the Guaranteed kWh and the calculation of the payment due; and (ii) the payment shall be due within ninety (90) days after the end of the Contract Year. If no payment is due, then no statement or payment will be issued.

E. “Performance Guarantee Payment Rate” means the Contract Price.

2.Exclusions. The Guaranty set forth in Section 1 does not apply to the extent of any reduced generation from the System due to the following (including the downtime required for repair, replacement or correction):

A. a Force Majeure Event, which includes (i) destruction or damage to the System or its ability to safely produce electricity not caused by Seller or its approved service providers while servicing the System (e.g., vandalism); (ii) a power or voltage surge caused by someone other than Seller, including a grid supply voltage outside of the standard range specified by the Utility; and (iii) theft of the System; and (iv) curtailment or reduction of energy production required by the Utility or grid operator.

B. Purchaser’s failure to perform, or breach of, Purchaser’s obligations under the PPA.

3.Liquidated Damages; Waiver of Cost Savings. The Parties agree that the payment described in Section 1(B) is a reasonable approximation of the damages suffered by Purchaser as a result of underperformance of the System, is bargained-for by the Parties, and shall be the Purchaser’s sole and exclusive remedy hereunder for underperformance of the System. Purchaser hereby disclaims, and any beneficiary of this Guaranty hereby waives, any warranty with respect to any cost savings from using the System.

4.Incorporation of PPA Provisions. Section 5(c) (Force Majeure), Section 17 (Assignment and Financing) and Section 19 (General Provisions) of Exhibit 3 of the PPA and any Sections referenced therein are incorporated into this Guaranty as if any reference therein to “Agreement” were to this Guaranty and any reference to “Parties” were to the Parties to this Guaranty.

Guarantor:

Signature:

Purchaser:

Signature:

Printed Name: Shawn Marshall Printed Name:

Title: Chief Executive Officer Title:

Date: Date:

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U 39 San Francisco, California

Revised Cal. P.U.C. Sheet No. 56296-E
Cancelling Revised Cal. P.U.C. Sheet No. 55837-E

Electric Sample Form No. 79-1220-02 Sheet 1
Interconnection Agreement for Net Energy Metering 2 (NEM2) of a Renewable Electric Generating Facility of 1,000 kW or Less, Except NEM2 Solar or Wind Facilities of 30 kW or Less,

and Virtual Net Energy Metering (NEM2V) of a Renewable Electric Generating Facility of 1,000 kW or Less

(Continued)
Advice 6976-E Issued by Submitted June 30, 2023
Decision Meredith Allen Effective June 30, 2023
Vice President, Regulatory Affairs Resolution

Please Refer to Attached
Sample Form

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING
FACILITY OF 1,000 KW OR LESS, EXCEPT NEM2
SOLAR OR WIND FACILITIES OF 30 KW OR

LESS, AND VIRTUAL NET ENERGY METERING
(NEM2V) OF A RENEWABLE ELECTRIC
GENERATING FACILITY OF 1,000 KW OR LESS

_______________________________
† Information collected on this form is used in accordance with PG&E’s Privacy Policy. Page 1 of 11 The Privacy Policy is available at pge.com/privacy. Form 79-1220-02 Advice 4773-G/6976-E
Automated Document, Preliminary Statement A June 2023

This INTERCONNECTION AGREEMENT FOR NET ENERGY METERING 2 (NEM) OF A RENEWABLE ELECTRIC GENERATING FACILITY OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET ENERGY METERING (NEM2V) OF A RENEWABLE ELECTRIC GENERATING FACILITY OF 1,000 KW OR LESS (Agreement) 1 is entered into by and between ____________________________________________ (Customer- Generator), and Pacific Gas and Electric Company (PG&E), a California Corporation. Customer- Generator and PG&E are sometimes also referred to in this Agreement jointly as “Parties” or individually as “Party.” In consideration of the mutual promises and obligations stated in this Agreement and its attachments, the Parties agree as follows:

1. SCOPE AND PURPOSE

1.1 This Agreement provides for Custom er-Generator to interconnect and operate a Renewable Electrical Generation Facility as defined in Schedule NEM2 (if this is a NEM2 Solar or Wind Generating Facility less than 30 kW, please use form 79-1151A- 02) (Generating Facility) in parallel with PG&E’s Electric System to serve the electrical loads connected to the electric service account that PG&E uses to interconnect Customer-Generator’s Generating Facility. Cu stomer-Generator’s Generating Facility is intended primarily to offset par t or all of the Customer-Generator’s own electrical requirements. Consistent with, and in order to effectuate, the provisions of Sections 2827 of the California Public Utilities Code and PG&E’s electric rate Schedule NEM2 (NEM2), Parties enter into this Ag reement. This Agreement applies to the Customer-Generator’s Generating Fac ilities identified below with the specified characteristics and generating capacity, and does not allow interconnection or operation of facilities different than those described.

2. SUMMARY AND DESCRIPTION OF CUSTOMER-GENERATOR’S GENERATING FACILITY

AND DESIGNATION OF OTHERWISE-APPLICABLE RATE SCHEDULE

2.1 A description of the Generating Facili ty, including a summary of its significant components, and a single-line diagram sh owing the general arrangement of how Customer-Generator’s Generating Facility and loads are interconnected with PG&E’s Electric System, is attached to and made a part of this Agreement. (This description is supplied by Customer-Generator as Appendix A).

2.2 Generating Facility identif ication number: __________________ (Assigned by PG&E).

1 Additional forms are available on PG&E’s website at http://www.pge.com/gen).

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 2 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023

2.3 Customer-Generator’s electric serv ice agreement ID number: __________________ (Assigned by PG&E).

2.4 Name and address used by PG&E to locate the electric service account used to interconnect the Generating Facility with PG&E’s Electric System:

Name: _____________________________
Address: ___________________________
City/Zip Code: _______________________

2.5 The Gross Nameplate Rating of the Generating Facility: _______ kW.

2.6 The Net Nameplate Rating of the Generating Facility: _______ kW.

2.7 The expected annual energy production of the Generating Facility is _______ kWh.

2.8 Customer-Generator’s other wise-applicable rate schedule as of the execution of this Agreement is __________________.

2.9 The Generating Facility’s expected dat e of Initial Operat ion is _____ ____________.

The expected date of Initial Operation shall be within two years of the date of this Agreement.

2.10 Smart Inverters - For Customer-Generator applications received on or after September 9, 2017, the Customer-Generat or certifies that their inverter-based Generating Facilities fully comply with Section Hh of Rule 21, including configuration of protective settings and default settings, in accordance with the specifications therein.

Distribution Provider may require a field verification of the Customer-Generator’s inverter. Customer-Generator further agrees to cooperate fully with any such request and make their inverter available to the Dist ribution Provider for such verification.

Customer-Generator understands that in the event the inverter is not set in accordance with Section Hh of Rule 21, Custome r-Generator will need to cease operation of generating facility until verification is confirmed by Distribution Provider. (Solar inverter models and firmware versions that comply with Rule 21 Section Hh can be found at https://www.energy.ca.gov/programs-and-topics/topics/renewable- energy/solar-equipment-lists.)
Verification of compliance with such requirements shall be provided by the Customer- Generator upon request by PG&E in accordance with PG&E’s Electric Rule 21.

An “existing inverter” is defined as an in verter that is a component of an existing Generating Facility that meets one or more of the following conditions:
(a) it is already approved by PG&E for interconnection prior to September 9, 2017 (b) the Customer-Generator has submitt ed the interconnection application prior to September 9, 2017,
(c) the Customer-Generator provides evidence of having applied for an electrical permit for the Generating Facility installati on that is dated prior to September 9,

303 of 1487

INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 3 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023
2017 and submitted a complete interconnection application 2 no later than March 31, 2018, or
(d) the Customer-Generator provides evidence of a final inspection clearance from the governmental authority having jurisdiction over the Generating Facility prior to September 9, 2017.

All “existing inverters” are not required to be Smart Inverters and are only subject to Section H of Rule 21. Customer-Generator r eplacing an “existing inverter” certifies it is being replaced with either:
(i) inverter equipment that complies with Section Hh of Rule 21, (encouraged); or
(ii) a conventional invert er that is of the same size and equivalent ability to that of the inverter being repl aced, as allowed in Rule 21 Section H.3.d.ii.

3. DOCUMENTS INCLUDED AND DEFINED TERMS

3.1 This Agreement includes the following exhibits that are specifically incorporated herein and made a part of this Agreement.

Appendix A Description of Generating Facility and Single-Line Diagram (Supplied by Customer-Generator).

Appendix B A Copy of PG&E’s Agreement for Installation or Allocation of Special Facilities (Forms 79-255, 79-280, 79-702) or Agreements to Perform Any Tariff Related Work (62-4527), if applicable (Formed by the Parties).

Appendix C Schedule NEM2 / NEM2V Customer-Generator Warranty That it Meets the Requirements for an Eligible Customer-Generator and Is an Eligible Renewable Electrical Generation Facility Pursuant to Section 2827 of the California Public Utilities Code (if applicable).

Appendix D NEM2 Load Aggregation Custom er-Generator Declaration Warranting NEM2 Aggregation Is Located On Same or Adjacent or Contiguous Property to Generator Parcel (if applicable)
Appendix E Customer-Generator Affidavit Warranting That NEM2V Arrangement Is Sized to Load (if applicable)
Appendix F NEMV, NEM2V, Storage (if applicable)

2 A complete application consists all of the following without deficiencies:

1. A completed Interconnection Application including all supporting documents and required payments, (continued next page)

2. A completed signed Interconnection Agreement,

3. Evidence of the Customer-Generator final inspection clearance from the governmental authority having jurisdiction over the generating system.

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 4 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023
Appendix G Operating Requirements fo r Energy Storage Device(s) (when applicable)
In addition, PG&E Electric Tariff Rules and Rates, including but not limited to Electric Rules 2, 14, 15, 16, and 21, Schedule NE M2 (if applicable), Schedule NEM2V (if applicable) and Customer-Gener ator’s otherwise-applicable rate schedule, available at PG&E’s website at www.pge.com or by request, are specifically incorporated herein and made part of this Agreement.

3.2 When initially capitalized, whether in the si ngular or in the plural, the terms used herein shall have the meanings assigned to them either in this Agreement or in PG&E’s Electric Rule 21, Section C.

4. TERM AND TERMINATION

4.1 This Agreement shall become effective as of the last date entered in Section 20 below.

The Agreement shall continue in full force and effect until the earliest date that one of the following events occurs:
(a) The Parties agree in writing to terminate the Agreement. (b) Unless otherwise agreed in writing by the Partie s, at 12:01 A.M. on the day following the date the electric service account through which Customer- Generator’s Generating Facility is interconnected to PG&E is closed or terminated. (c) At 12:01 A.M. on the 61
st day after Customer-Generator or PG&E provides written Notice pursuant to Section 10 below to the other Party of Customer-Generator’s or PG&E’s intent to terminate this Agreement.

4.2 Customer-Generator may elect to termi nate this Agreement pursuant to the terms of Section 4.1(c) for any reason. PG&E may el ect to terminate this Agreement pursuant to the terms of Section 4.1(c) for one or more of the following reasons:
(a) A change in applicable rules, tariffs, or regulations, as approved or directed by the Commission, or a change in any local, stat e or federal law, st atute or regulation, either of which materially alters or otherwise affects PG&E’s ability or obligation to perform PG&E’s duties under this Agreement; or,
(b) Customer-Generator fails to take all corrective actions specified in PG&E’s Notice that Customer-Generator’s Generating Facility is out of compliance with the terms of this Agreement within the time frame set forth in such Notice; or, (c) Customer-Generator abandons the Gener ating Facility. PG&E shall deem the Generating Facility to be a bandoned if PG&E determines, in its sole opinion, the Generating Facility is nonoperational and Customer-Generator does not provide a substantive response to PG&E Notice of its intent to terminate this Agreement as a result of Customer-Generator’s apparent abandonment of the Generating Facility affirming Customer-Generator’s intent and ability to continue to operate the Generating Facility; or,
(d) Customer-Generator’s Generating Facility ceases to meet all applicable safety and performance standards set out in Section 5.

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 5 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023

4.3 Notwithstanding any other provisions of this Agreement, PG&E shall have the right to unilaterally file with the Commission, pursuant to the Commission’s rules and regulations, an application to terminate this Agreement.

4.4 Any agreements attached to and incorporated into this Agreement shall terminate concurrently with this Agreement unless the Parties have agreed otherwise in writing.

5. GENERATING FACILITY REQUIREMENTS

5.1 Customer-Ge nerator’s Generating Fa cility must meet all applicable safety and performance standards established by the Na tional Electrical Code, the Institute of Electrical and Electronics Engineers, and a ccredited testing laboratories such as Underwriters Laboratories and, where applic able, rules of the Commission regarding safety and reliability including Rule 21.

5.2 Customer-G enerator shall: (a) ma intain the Generating Facility and Interconnection Facilities in a safe and pru dent manner and in conformance with all applicable laws and regulations including, but not limit ed to, Section 5.1, and (b) obtain any governmental authorizations and permits required for the construction and operation of the Generating Facility and Interconnection Facilities. Customer-Generator shall reimburse PG&E for any and all losses, damages, claims, penalties, or liability it incurs as a result of Customer-Generator's failure to obtain or maintain any governmental authorizations and permits required for co nstruction and operation of Customer- Generator's Generating Facility.

5.3 Customer-Ge nerator shall not commence parallel operation of the Generating Facility until PG&E has provided express written approval. Such approval shall normally be provided no later than thirty (30) business days following PG&E’s receipt of: (1) a completed Rule 21 Generator Interconnection Application (Form 79-1174-02), including all supporting documents and payments as described in the Application; (2) a signed and completed INTERCONNECTION AGREEMENT FOR A NET ENERGY METERING (NEM2/NEM2V) OF A RE NEWABLE ELECTRICAL GENERATION FACILITY OF 1,000 KW OR LESS, EXCEPT SOLAR OR WIND (Form 79-XXXX-02); and (3) a copy of the Customer-Generator’s final inspection clearance from the governmental authority having jurisdiction over the Generating Facility. Such approval shall not be unreaso nably withheld. PG&E shall have the right to have representatives present at the Commissioning Test as defined in Rule 21. Customer- Generator shall notify PG&E at least five (5) business days prior to the initial testing.

5.4 In order to promote the safety and reliability of the cust omer Generating Facility, the applicant certifies that as a part of each interconnection request for NEM2, that all major solar system components are on the verified equipment list maintained by the California Energy Commission and certifies that other equipment, as determined by PG&E, has safety certification from a nationally recognized testing laboratory.

5.5 Applicant certifies as a part of each interconnection request for NEM2 that (i) a warranty of at least 10 years ha s been provided on all equipment and on its installation, or
(ii) a 10-year service warranty or executed “agreement” has been provided ensuring proper maintenance and continued system performance.

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 6 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023

5.6 Customers on this tariff must pay for th e interconnection of their Generation Facilities as provided in Electric Rule 21, pursuant to Decision 16-01-044.

6. INTERCONNECTION FACILITIES

6.1 Customer-Generator and/or PG&E, as appropriate, shall provide Interconnection Facilities that adequately pr otect PG&E’s Electric Syst em, personnel, and other persons from damage or injury, which may be caused by the operation of Customer- Generator’s Generating Facility.

6.2 Customer-Generator shall be solely resp onsible for the costs, design, purchase, construction, permitting, operation, and main tenance of the Interc onnection Facilities that Customer-Generator owns.

6.3 If the provisions of PG&E’s Electric Rule 21, or any other tariff or rule approved by the Commission, require PG&E to own and operate a portion of the Interconnection Facilities, Customer-Generator and PG&E shall promptly execute an Special Facilities Agreement that establishes an d allocates responsibility fo r the design, installation, operation, maintenance, and ownership of the Interconnection Facilities. This Special Facilities Agreement shall be attached to and made a part of this Agreement as Appendix B.

7. LIMITATION OF LIABILITY
Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of this agreement, shall be limit ed to the amount of direct damage actually incurred. In no event shall either Party be liabl e to the other Party for any indirect, special, consequential, or punitive damages of any kind whatsoever.

8. INSURANCE

8.1. Customer-G enerator Facility is required to comply with standards and rules set forth in Section 5 and provide the following for insurance policies in place. (a) For NEM2V Customer-Generators onl y, to the extent that Customer- Generator has currently in force property insurance and commercial general liability or personal liability insurance, Customer-Generator agrees that it will maintain such insurance in force for the duration of this Agreement in no less amounts than those currently in effect. Pacific Gas and Electric Company shall have the right to inspect or obtain a copy of the original policy or policies of insurance prior to commencing operation. As long as Customer- Generator meets the requirements of this Section 8.1(a), Customer- Generator shall not be required to purchase any additional liability insurance.  I have insurance. I hereby certify t hat there is presently insurance coverage in the amount of $_______________ for the Schedule NEM2V Generating Facility location.

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 7 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023
Insuring Company’s Name: ____________________________________

Insurance Policy # ___________________________________________

 I do not have insurance. I hereby certif y that there is presently $0 (zero) dollars of insurance for the Schedule NEM2V Generating Facility location.

8.2. Customer-Generator shall furnish the required certificates and all endorsements to PG&E prior to Parallel Operation.

8.3. The certificate shall provide thirty (30) calendar days’ written notice to PG&E prior to cancellation, termination, alteration, or material change of such insurance.

8.4. PG&E shall have the right to inspect or obt ain a copy of the original policy or policies of insurance.

If at any time during this agreement the Customer-Generator fails to meet the requirements in Section 5, the following insurance shall apply:

Customer-Generator shall procure and maintain a commercial general liability insurance policy at least as broad as the Insurance Services Office (ISO) commercial general liability coverage “occurrence” form; or, if Customer-Generator is an individual, then liability coverage with respect to premises and use at least as broad as the ISO homeowners’ or personal liability Insu rance occurrence policy form, or substitute, providing equivalent coverage no less than the following limits, based on generator size:
(a) Two million dollars ($2,000,000) fo r each occurrence if the Gross Nameplate Rating of the Generating Facility is greater than one hundred (100) kW; or
(b) One million dollars ($1,000,000) fo r each occurrence if the Gross Nameplate Rating of the Generating Facility is greater than twenty (20) kW and less than or equal to one hundred (100) kW; or
(c) Five hundred thousand dollars ($500,000) for each occurrence if the Gross Nameplate Rating of the Generating Facility is twenty (20) kW or less;
(d) Two hundred thousand dollars ($200,000) for each occurrence if the Gross Nameplate Rating of the Generating Facility is ten (10) kW or less and the Generating Facility is connected to an account receiving residential service from PG&E.

The insurance shall, by endorsement:
(a) Add PG&E as an additional insured;
(b) State that coverage provided is primary and is not in excess to or contributing with any insurance or self-insurance maintained by PG&E. (c) Contain a severability of interest clause or cross-liability clause

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 8 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023

8.5. If Customer-Generator’s Generating Facility is connec ted to an account receiving residential service from PG&E and the requirement of Section 8.1 prevents Customer- Generator from obtaining the insurance required in this Section, then upon Customer- Generator’s written Notice to PG&E in accordance with Section 10.1, the requirements of Section 8.1 may be waived.

8.6. Customer-Generator may self-insure with approval from PG&E. Evidence of an acceptable plan to self-insure, at least th irty (30) calendar days’ prior to operations shall be submitted. Customer-Generators su ch as state agencies that self-insure under this section are exempt from Section 8.1.

If Customer-Generator ceases to self-insure to the level required hereunder, or if Customer-Generator is unable to provide continuing evidence of Customer- Generator’s ability to self-insure, Customer-Generator ag rees to immediately obtain the coverage required under agreement.

8.7. All required certificates, endorsements or letters of self-insurance shall be issued and submitted via email or mail to the following:

Pacific Gas and Electric Company
Attn: Electric Grid Interconnection – Contract Management 300 Lakeside Drive, Suite 210
Oakland, CA 94612
Email: [email protected]

9. INDEMNITY FOR FAILURE TO COMPLY WITH INSURANCE PROVISIONS

9.1 If Customer-Generator fails to comply with the insurance provisions of this Agreement, Customer-Generator shall, at its own cost, defend, save harmless and indemnify PG&E, its directors, officers, employees, agents, assignees, and successors in interest from and against any and all loss, liability, damage, claim, cost, charge, demand, or expense of any kind or nature (including attorney's fees and other costs of litigation) resulting from the death or injury to any person or damage to any property, including the personnel and property of the utility, to the extent that the utility would have been protected had Customer-Generator complied with all such insurance provisions. The inclusion of this Section 9.1 is not intended to create any expressed or implied right in Customer-Generator to elect not to provide any such required insurance.

9.2 The provisions of this Section 9 shall not be construed to relieve any insurer of its obligations to pay any insurance claims in accordance with the provisions of any valid insurance policy.

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 9 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023

10. NOTICES

10.1 Any written notice, demand, or request r equired or authorized in connection with this Agreement (Notice) shall be deemed properly gi ven if delivered in person or sent by first class mail, postage prepaid, to the person specified below:

If to PG&E: Pacific Gas and Electric Company
Attention: Electric Grid Interconnection – Contract Management 300 Lakeside Drive, Suite 210
Oakland, CA 94612
Email: [email protected]

If to Customer-Generator:

Customer-Generator Name:

Address:

City:

Phone: ( )
F A X : ( )

10.2 A Party may change its address for Notices at any time by providing the other Party notice of the change in accordance with Section 10.1.

10.3 The Parties may also designate operat ing representatives to conduct the daily communications, which may be necessary or convenient for the administration of this Agreement. Such designations, includ ing names, addresses, and phone numbers may be communicated or revised by one Party’s Notice to the other.

11. REVIEW OF RECORDS AND DATA

11.1 PG&E shall have the right to review and obtain copies of Cu stomer-Generator’s operations and maintenance records, logs, or other information such as Generating Facility availability, mainte nance outages, circuit breake r operation requiring manual reset, relay targets and unusual events pertaining to Customer-Generator’s Generating Facility or its interconnection to PG&E.

11.2 Customer-Generator authorizes to releas e to the California Energy Commission (CEC) information regarding Customer -Generator’s facility, including customer name and Generating Facility location, size, and operational characteri stics, as requested from time to time pursuant to the CEC’s rules and regulations.

12. ASSIGNMENT
Customer-Generator shall not voluntarily as sign its rights nor delegat e its duties under this Agreement without PG&E’s written consent. Any assignment or delegation Customer- Generator makes without PG&E’s written consent shall not be valid. PG&E shall not unreasonably withhold its consent to Customer-Generator’s assignment of this Agreement.

310 of 1487

INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 10 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023

13. NON-WAIVER
None of the provisions of this Agreement shall be considered waived by a Party unless such waiver is given in writing. The failure of a Pa rty to insist in any one or more instances upon strict performance of any of the provisions of this Agreement or to take advantage of any of its rights hereunder shall not be construed as a waiver of any such provisions or the relinquishment of any such rights for the future, but the same shall continue and remain in full force and effect.

14. DISPUTES

14.1 Dispute Resolution
Any dispute arising between the Parties r egarding a Party’s performance of its obligations under this Agreement or requirements related to the interconnection of the Generating Facility shall be resolved according to the procedures in Rule 21.

15. REVIEW OF RECORDS AND DATA

15.1 Applicable Tax Laws and Regulation
The Parties agree to follow all applicable tax laws and regulations, consistent with CPUC policy and Internal Revenue Service requirements.

15.2 Maintenance of Tax Status
Each Party shall cooperate with the other to maintain the other Party's tax status.

Nothing in this Agreement is intended to adversely affect the Distribution Provider's tax exempt status with respect to the issuance of bonds including, but not limited to, local furnishing bonds

16. GOVERNING LAW, JURISDICTION OF COMMISSION, INCLUSION OF PG&E’s TARIFF

SCHEDULES AND RULES

16.1 This Agreement shall be interpreted, governed, and construed under the laws of the State of California as if executed and to be performed wholly within the State of California without giving effect to choice of law provisions that might apply to the law of a different jurisdiction.

16.2 This Agreement shall, at all times, be subj ect to such changes or modifications by the Commission as it may from time to time direct in the exercise of its jurisdiction.

16.3 The interconnection and services provided under this Agreement shall at all times be subject to the terms and conditions set forth in the Tariff Schedules and Rules applicable to the electric service provided by PG&E, which Tariff Schedules and Rules are hereby incorporated into this Agreement by this reference.

16.4 Notwithstanding any other provisions of this Agreement, PG&E shall have the right to unilaterally file with the Commission, pursuant to the Commission’s rules and regulations, an application for change in rates, charges, classification, service, tariff or rule or any agreement relating thereto.

311 of 1487

INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 11 of 11 Form 79-1220-02
Advice 4773-G/6976-E
June 2023

17. CRD POWER CONTROL SYSTEM CERTIFICATION
When applicable, Customer-Generator confirms that the Renewable Electrical Generation Facility including Energy Storage over 10 kW that has received UL 1741 CRD for Power Control Systems (PCS) certificat ion will comply with either No Gr id Charge or No Storage Export as defined in Schedule NEM2.

18. AMENDMENT AND MODIFICATION
This Agreement can only be amended or modified in writing, signed by both Parties.

19. ENTIRE AGREEMENT
This Agreement, including any incorporated Tari ff Schedules and Rules, contains the entire Agreement and understanding between the Partie s, their agents, and em ployees as to the subject matter of this Agreement. Each party also represents that in entering into this Agreement, it has not relied on any promise, inducement, representation, warranty, agreement or other statement not set forth in this Agreem ent or in the incorporated Tariff Schedules and Rules.

20. SIGNATURES
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives. This Agreement is effective as of the last date set forth below.

PACIFIC GAS AND ELECTRIC COMPANY
(Customer-Generator’s Name)

(Signature) (Signature)

(Print Name) (Print Name)

(Title) (Title)

(Date) (Date)

312 of 1487

INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 1 of 1 Form 79-1220-02, Appendix A
Advice 4773-G/6976-E
June 2023

APPENDIX A

DESCRIPTION OF GENERATING FACILITY

AND SINGLE-LINE DIAGRAM

(Provided by Customer-Generator)

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 1 of 1 Form 79-1220-02, Appendix B
Advice 4773-G/6976-E
June 2023
APPENDIX B (If Applicable)

Any Rule 2 or Rule 21 Agreements for the Installation or Allocation of Special Facilities (Forms 79-255, 79-280, 79-702) or Agreements to Perform Any Tariff Related Work (62-4527)
(Formed between the Parties)

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 1 of 3 Form 79-1220-02, Appendix C
Advice 4773-G/6976-E
June 2023

APPENDIX C

(NOT APPLICABLE TO SOLAR AND/OR WIND)

SCHEDULE NEM2 CUSTOMER-GENERATOR WARRANTY THAT IT

MEETS THE REQUIREMENTS FOR AN ELIGIBLE CUSTOMER-

GENERATOR AND IS AN ELIGIBLE RENEWABLE ELECTRICAL
GENERATION FACILITY PURSUANT TO SECTION 2827 OF THE

CALIFORNIA PUBLIC UTILITIES CODE
(This Affidavit is required every time a new NEM2 or NEM2V interconnection agreement for a Renewable Electrical Generation Facility is executed or whenever there is a change in ownership of the Generating Facility)
Check Type of Renewable Electrical Generation Facility:
 biomass  geothermal  municipal solid waste
 solar thermal  fuel cell  landfill gas
 small hydroelectric
generation  ocean wave  digester gas
 ocean thermal  tidal current
NEM2 / NEM2V Customer-Generator (Customer) declares that (1) it meets the requirements to be an “Eligible Customer-Generator” and its Generating Facility.
(2) (a) meets the requirements of an “Renew able Electrical Generation Facility”, as defined in Section 2827(b)(5) of the California Public Utilities Code and (b) satisfies the definitions of the renewable resource for the Renewable Electrical Generation Facility in the latest version of the California Energy Commission’s (CEC’s) Renewables Portfolio Standard (RPS) Eligibility Guidebook and the Overall Program Guidebook.3 (Eligibility Requirements).

Included in these eligibility requirements (check as applicable) pursuant to Public Utilities Code section 2827(b)(5) and Public Resource Code Section 25741 paragraph 1(a):

3 The RPS Guidebooks can be found at: https://www.energy.ca.gov/programs-and- topics/programs/renewables-portfolio-standard

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 2 of 3 Form 79-1220-02, Appendix C
Advice 4773-G/6976-E
June 2023
 If the Renewable Electrical Gene ration Facility is a fuel cell, or otherwise uses renewable biogas or otherwise, Eligible Customer-Generator warrants that the fuel cell is powered solely with renewable fuel.
 If the Renewable Electrical Generation Facility is a Small hydroelectric generating facility, customer warrants that it will not cause an adverse impact on instream beneficial uses, nor cause a change in the volume or timing of streamflow).

If the Customer uses biogas or a renewable fuel as the fuel for their Renewable Electric Generation Facility:
 Eligible Customer-Generator warrants that the Renewable Generation Facility is powered solely with renewable fuel.

Eligible Customer-Generator warrants that, beginning on the date of Initial Operation and continuing throughout the term of this Agreement, Eligible Customer-Generator and the Generating Facility shall continue to meet the Eligibility Requirements. If Eligible Custom er-Generator or the Generating Facility ceases to meet the Eligibility Requirements, Eligible Customer-Generator shall promptly provide PG&E with Notice of such change pursuant to Section 10 of this Agreement. If at any time during the term of this Agreement PG&E determines, at its sole discretion, that Eligible Customer- Generator or Generating Facility may no longer meet the Eligibility Requirements, PG&E may require Eligible Customer-Generator to provide evidence that Eligible Customer-Generator and/or Generating Facility continues to meet the Eligibility Requirements, within 15 business days of PG&E’s request for such evidence. Additionally, PG&E may periodicall y (typically, once per year) inspect Producer’s Generating Facility and/or require documentation from Eligible Customer-Generator to monitor the Generating Facility’s compliance with the Eligibility Requirements. If PG&E determines at its sole judgment that Eligible Customer-Generator either failed to provide evidence in a timely manner or that it provided insufficient evidence that its Generating Facility continues to meet the Eligibility Requirements, then the Eligibility Status shall be deemed ineffective until such time as Eligible Customer-Generator again demonstrates to PG&E’s reasonable satisfaction that Eligible Customer- Generator meets the requirements for an Eligible Customer–Generator and/or the Generating Facility meets the requirements for a Eligible electrical generating facility (the Eligibility Status Change).

PG&E shall revise its records and the administration of this Agreement to reflect the Eligibility Status Change and provide Notice to Eligible Customer-Generator of the Eligibility Status Change pursuant to Section 10 of this Agreement. Such Notice sha ll specify the effective date of the Eligibility Status Change. This date shall be the first day of the ca lendar year for which PG&E determines in its sole discretion that the Eligible Customer-Generator and/or Generating Facility first ceased to meet the Eligibility Requirements. PG&E shall invoice the Eligible Customer-Generator for any tariff charges that were not previously billed during the period between the effective date of the Eligibility Status Change and the date of the Notice in reliance upon Eligible Customer-Generator’s representations that Eligible Customer-Generator and/or Generating Facility complied with the Eligibility Requirements and therefore was eligible for the rate treatment available under the Net Energy Metering provisions of PG&E’s Schedule NEM2 or NEM2V, Net Energy Metering Service for Eligible Customer-Generators.

316 of 1487

INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 3 of 3 Form 79-1220-02, Appendix C
Advice 4773-G/6976-E
June 2023
Any amounts to be paid or refunded by Eligible Customer-Generator, as may be invoiced by PG&E pursuant to the terms of this warranty, shall be paid to PG&E within 30 days of Eligible Customer- Generator’s receipt of such invoice.

Unless otherwise ordered by the CPUC, this Agreement at all times shall be subject to such modifications as the CPUC may direct from time to time in the exercise of its jurisdiction.

I certify the above is true and correct,
Customer-Generator Signature:

N a m e :

T i t l e :

Date:

317 of 1487

INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 1 of 2 Form 79-1220-02, Appendix D
Advice 4773-G/6976-E
June 2023

APPENDIX D
NEM2 LOAD AGGREGATION APPENDIX
(If Applicable)
Customer-Generator Declaration Warranting NEM2 Aggregation Is Located on Same or Adjacent or Contiguous Property to Generator Parcel

In accordance with Schedule NEM2, I, Customer-Generator represent and warrant under penalty of perjury that:
1) The total annual output in kWh of the generat or is less than or equal to 100% of the annual aggregated electrical load in kWh of the meters within the arrangement, including the load on the generating account itself (before being offset by the generator), and including any estimated future additional load; and
2) Each of the aggregated account meters associated with this NEM2 generator account are located either:
(i) on the property where the renewable electrical generation facility is located, or (ii) are located within an unbroken chain of contiguous parcels that are all solely owned, leased or rented by the customer-generator. For purposes of Load Aggregation, parcels that are divided by a street, highway, or public thoroughfare are considered contiguous, provided they are within an unbroken chain of otherwise contiguous parcels
that are all solely owned leased or rented by the
customer-generator.

For example, assume there are five parcels (A,
B, C, D, E, and F) that form a cluster of
contiguous parcels and D and E are separated
from A, B, C and F by a street, highway, or public
thoroughfare. For the purposes of participating in
Load Aggregation, all five parcels are considered
contiguous, provided they are otherwise
contiguous and all are solely owned, leased or
rented by the customer-generator. Refer to the
diagram at left (for illustrative purposes only.)
3) PG&E reserves the right to request a parcel map
to confirm the property meets the requirements of 2) above; and 4) Customer-Generator agrees to notify PG&E if there is any change of status that makes any of the participating meters ineligible for meter aggregation to ensure that only eligible meters are participating; PG&E will require an updated Appendix and Declaration form; and

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 2 of 2 Form 79-1220-02, Appendix D
Advice 4773-G/6976-E
June 2023
5) Upon request by PG&E, I agree to provide documentation that all aggregated meters meet the requirements of Rate Schedule NEM2 Special Condition 6 including but not limited to parcel maps and ownership records.

Customer Generator’s Name Signature

Date Type/Print Name

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page1 of 1
Form 79-1220-02, Appendix E
Advice 4773-G/6976-E
June 2023

APPENDIX E
(If Applicable)
CUSTOMER-GENERATOR AFFIDAVIT WARRANTING THAT NEM2V

ARRANGEMENT IS SIZED TO LOAD

In accordance with Schedule NEM2V, I, Customer-Generator warrant that:
1) the Generator Account associated with this NEM2V agreement is sized to offset no more than part or all of the annual usage (kWh) requirements of all the Benefitting Accounts included in this NEM2V Arrangement, and
2) the Eligible Allocation Percentage established for each Benefitting Account is sized to offset no more than part or all or the annual usage (kWh) requirement for that specific Benefitting Account.

Service Address of Generator: ________________________________________________ ________________________________________________

Customer Generator’s Name Signature

Date Type/Print Name

Title

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page1 of 1
Form 79-1220-02, Appendix F
Advice 4773-G/6976-E
June 2023

APPENDIX F
(If Applicable)
NEMV, NEM2V Storage

Applicants adding storage pursuant to Schedules NEMV, NEM2V under the Special Condition for storage must include proper documentation per PG&E’s Distribution Interconnection Handbook (DIH).

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 1 of 2 Form 79-1220-02, Appendix G
Advice 4773-G/6976-E
June 2023

APPENDIX G
Operating Requirements for Energy Storage Device(s)
(when applicable)
The following Operating Requirement(s) apply to the charging functions of the Generating Facility:
 Producer’s storage device(s) will not consume power from Distribut ion Provider’s Distribution System at any time.
 Producer’s storage device(s) will not cause the Host Load to exceed its normal peak demand.

Normal peak demand is defined as the highest amount of power required from the Distribution System by Producer’s complete facilities without the influenc e or use of the energy storage device(s).
 To avoid upgrades or other technical mitigation items identified in the interconnection process, Producer has chosen the following Generating Facility operating constraint(s):

For the annual period between _____________ [Month/Day] and _____________ [Month/Day] And during the hours of ____________________________
The storage device(s) will consume no more than a total of ___ kW from the Distribution System.

This operating constraint voids the need for the following specific mitigation scope:

No other charging function limitation is required fo r this Generating Facilit y except the requirements above. Producer will be responsibl e for the costs of t he corresponding upgrades or other technical mitigations if at any time the Producer elects to forego or violates the operating requirement.

Consistent with current load service Rules, Distribution Provider is not required to reserve capacity for load. Producer is re sponsible to contact the utility for any modification to its equipment or change in operations that may result in increased load demand per Electric Rule 3.C.

If any operating requirement is specified above, Distribution Provider reserves the right to ask for data at the 15-minute interval level at any time to ve rify that the operating r equirement is being met.

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INTERCONNECTION AGREEMENT FOR
NET ENERGY METERING 2 (NEM2)

OF A RENEWABLE ELECTRIC GENERATING FACILITY
OF 1,000 KW OR LESS, EXCEPT NEM2 SOLAR OR WIND
FACILITIES OF 30 KW OR LESS, AND VIRTUAL NET
ENERGY METERING (NEM2V) OF A RENEWABLE
ELECTRIC GENERATING FACILITY OF 1,000 KW OR
LESS

________________________________________
Automated Document, Preliminary Statement A Page 2 of 2 Form 79-1220-02, Appendix G
Advice 4773-G/6976-E
June 2023
Distribution Provider will make such request via a wr itten notice no more t han once per calendar quarter. Producer must provide such data wi thin 30 Calendar Days of the written request.

If the Generating Facility fails to adhere to the operating requirements at any time, it will be disconnected immediately in accordance with Rule 21 Section D.9 and not reconnected until an approved mitigation (e.g., supervising controls) is in place as determined by Distribution Provider.

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 12 Section Name: CONSENT CALENDAR Account Number: 10-2011 File ID: 24-8521 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: March 18, 2024
SUBJECT:

Fiscal Year 2022-23 Annual Comprehensive Financial Report - Acceptance RECOMMENDATION:

Accept the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023.

BACKGROUND:

The City’s Charter, Section 5.26 requires that the City’s external auditor conduct an annual audit and the City issue a complete set of financial statements within a reasonable time. The Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023, included as attachments to this administrative report, was presented to the Mayor and the Deputy Mayor in their capacities as members of the City Council Audit Committee. The Audit Committee recommended that the City Council formally accept the ACFR at its regular meeting.

The City's independent auditor, The Pun Group, a firm of licensed certified public accountants, conducts its audits in accordance with generally accepted auditing standards (GAAS). The standards require that the auditors plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of a material misstatement. On a sample basis, they examine evidence supporting the amounts and disclosures in the financial statements. The audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation.

The auditor has rendered an unmodified (“clean”) opinion on the City's basic financial statements as of and for the fiscal year ended June 30, 2023.

MANAGEMENT’S DISCUSSION AND ANALYSIS
Governmental Accounting Standards require a Management’s Discussion and Analysis (referred to as MD&A) to be included with the audited financial statements, with the intent of giving readers an objective and easily readable analysis of the City’s financial performance for the year. The MD&A includes a discussion of the basic financial statements, some condensed financial information, an analysis of the City’s financial position, and results of operations on both a City-wide and Fund basis. The Management’s Discussion and Analysis begins on page 5 of the ACFR.

FINANCIAL RESULTS BY FUND
The Fund Financial Statements section, which can be found on pages 35 through 54 of the financial report, presents financial data for the City's major funds, most notably the General Fund.

General Fund
The General Fund is the primary operating fund of the City. The General Fund experienced a surplus of $6.4 million for the fiscal year as revenues exceeded expenditures and net transfers out. General Fund revenues for the fiscal year 2022-23

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totaled $163.6 million, marking a $3.9 million (2.5%) increase from the prior year. The growth is primarily attributed to higher property tax and charges for services.

Property tax, the City's largest revenue source, increased by $8.2 million (11.4%). The increase was largely due to the receipt of $5.7 million of the fiscal year 2020-21 VLF shortfall backfilled by the State. Additionally, secured property tax reached $46.6 million, a $3.6 million (8.3%) growth compared to the prior year. The growth is consistent with the assessed value growth for the fiscal year and underscores the high value of land and property on the San Francisco Peninsula.

Sales tax, the General Fund's second-highest revenue source, experienced modest growth of $0.5 million (1.6%). It is anticipated that sales tax revenue will remain a stable revenue source with a modest growth rate, following its strong recovery from the pandemic.

Other taxes, which include business tax, transient occupancy tax (TOT), real property transfer tax and franchise fees, decreased by $2.1 million (7.6%) compared to the prior year. Despite the growth in business tax and TOT revenue, it was insufficient to offset the decrease in real property transfer tax revenue. The slowdown in the housing market, attributed to high interest rates, resulted in a significant decrease of $6.9 million (48.3%) in real property transfer tax revenue. At the close of the fiscal year 2022-23, real property transfer tax recorded only $7.4 million.

The General Fund total expenditures for the fiscal year 2022-23 amounted to $149.9 million, and $3.6 million under budget. The favorable budget variance was largely due to staff vacancy savings, which were partially offset by increases in contract services, negotiated labor contracts, increasing costs of pension and healthcare. General Fund transfers out amounted to $15.5 million, which comprise of $10.9 million to the General Capital Projects Fund, $2.7 million to the Debt Service Fund, $1.5 million to the 2% Hotel Tax Capital Project Funds, and $410,000 to the Vehicle and Equipment Replacement Internal Service Fund.

Other Major Funds
The Construction Service Fund is a special revenue fund accounting for revenues and expenditures of activities related to building permits. This fund experienced a deficit of $3.7 million, bringing its fund balance down to $32.6 million. This reduction reflects the City’s efforts to align the cost of services with its corresponding fees. Over time, these efforts will gradually reduce reserves down to policy levels, which is set at 12 months of budgeted operating expenditures.

The General Capital Projects Fund reported $24.8 million in capital project expenditures, reflecting the City’s investments in City facilities and infrastructure. They included $11.7 million for citywide street rehabilitation and reconstruction, $2.8 million in streetlights improvement projects, $1.4 million in parks projects, $3.0 million in City facilities and technology upgrades, and $4.8 million for storm improvement projects. The citywide street rehabilitation will repair streets that were identified as failed in 2013 and ensure that the City will be able to maintain its Pavement Condition Index score of 70.

Proprietary Funds
Proprietary Funds are used to account for activities that are fueled by charges for the services provided by each fund.

Enterprise Funds account for external activities (largely utilities), while Internal Service Funds (ISFs) account for internal (interdepartmental) activities.

The Sewer Fund is the City’s main enterprise fund and should be self-supporting; the service charges to sewer customers generate the revenues needed to support the enterprise’s operations, debt service, and capital needs.

The Sewer Fund’s total net position increased from $278.6 million to $335.9 million, an increase of $57.3 million or 20.6%, largely driven by the approved rate increase of 12% for fiscal year 2022-23, and the strategic use of the available low- interest-rate loan and bond proceeds to fund the cost of the Clean Water Program. Cash and investments increased from $103.1 million to $138.4 million as a result of the rate increase. Restricted cash and investments decreased from $252.6 million to $92.2 million, reflecting loan and bond drawdown to pay for the Clean Water Program and other critical sewer capital projects. Total capital assets increased from $552.0 million to $699.4 million, a $147.4 million (26.7%) increase, representing the addition of new capital assets from the Clean Water Program.

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GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements, which provide a broad overview of the City’s finances, including financial data from Governmental and Business-Type activities. The latter reflects the City's Sewer Enterprise, and the former accounts for the remainder; most notably, the General Fund.

Statement of Net Position
The Statement of Net Position primarily presents the City's balance sheet-type accounts: assets and deferred outflows of resources (expenditures that apply to a future period), liabilities and deferred inflows of resources (revenues that apply to a future period), and the net of the former and latter categories, reported as net position.

As of June 30, 2023, the City's entity-wide net position was $787.3 million. The net position decreased by $59.4 million (8.2%) compared to the prior fiscal year. This was largely due to increase in the City’s net pension liability, which rose from $177.2 million to $278.8 million. The $101.6 million (57.3%) increase in net pension liability is primarily attributable to the

7.5% investment loss by the California Public Employees Retirement System (CalPERS) for the fiscal year ended June 30, 2022.

Statement of Activities
The Statement of Activities, which reports government-wide revenues and expenses, accounted for $245.8 million in total expenses, which had a significant increase of $41.4 million (20.3%) compared to the prior fiscal year. The primary driver behind the increase was the increase in net pension liability due to the unfavorable deviation of CalPERS’ investment returns, as noted above.

BUDGET IMPACT:

The recommended action has no budget impact.

ENVIRONMENTAL DETERMINATION:

This report is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).) In addition, this report is not a project subject to CEQA, in that it consists of a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Annual Comprehensive Financial Report for the year ended June 30, 2023

STAFF CONTACT
Karen Huang, Finance Director
[email protected]
(650) 522-7110

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City of San Mateo

San Mateo, California

Annual Comprehensive Financial Report

For the Year Ended June 30, 2023

Prepared by
Finance Department

FINAL DRAFT 03.08.2024

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Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

Table of Contents

i

Page

INTRODUCTORY SECTION (Unaudited)

Table of Contents ........................................................................................................................................................ i Letter of Transmittal ................................................................................................................................................... v Directory of City Officials ................................................................................................... .....................................xviii Map of City’s Location .............................................................................................................................................xix Organizational Chart .................................................................................................................................................xx GFOA Certificate of Excellence in Financial Reporting ...........................................................................................xxi

FINANCIAL SECTION

Independent Auditors’ Report ................................................................................................................................ 1

Management’s Discussion and Analysis – Required Supplementary Information (Unaudited) ...................... 5

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ..................................................................................................... ....................... 30 Statement of Activities a nd Changes in Net Position .................................................................................. 32

Fund Financial Statements:

Governmental Funds Financial Statements:

Balance Sheet .............................................................................................................. .......................... 38 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ...................................................................... 41 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................... 42 Reconciliation of the Government al Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities a nd Changes in Net Position ..................................................................... 44 Proprietary Funds Financial Statements:

Statement of Net Position .................................................................................................. ................... 46 Statement of Revenues, Expen ses and Changes in Net Position .......................................................... 47 Statement of Cash Flows .................................................................................................... .................. 48 Fiduciary Funds Financial Statements:

Statement of Fiduciary Net Position ........................................................................................ ............. 53 Statement of Changes in Fiduciary Net Position .................................................................................. 54

Notes to the Basic Financial Statements ........................................................................................................ 61

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Annual Comprehensive Financial Report
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Table of Contents (Continued)

ii

Page
FINANCIAL SECTION (Continued)

Required Supplementary Information (Unaudited):

Budgetary Information ........................................................................................................ ............................. 129 Budgetary Comparison Schedules:

General Fund ................................................................................................................ ............................. 130 Construction Services Special Revenue Fund ........................................................................................... 133 Schedule of Changes in the Net Pe nsion Liability and Related Ratios ............................................................ 134 Schedules of Contributions - Pension ......................................................................................... ..................... 136 Schedule of Changes in Total O PEB Liability and Related Ratios ................................................................. 138 Schedule of Contributions – OPEB ............................................................................................. .................... 139

Supplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet ..................................................................................................... .................... 144 Combining Statement of Reve nues, Expenditures and Changes in Fund Balances ........................................................................................................... ...................... 149

Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual Schedules:

General Projects Capital Projects Fund .............................................................................................. 154 Police Grants Special Revenue Fund ......................................................................................... ......... 155 Community Development Block Grant Special Revenue Fund ......................................................... 156 HOME Special Revenue Fund .................................................................................................. .......... 157 City Housing Special Revenue Fund .......................................................................................... ........ 158 Low and Moderate Income H ousing Special Revenue Fund .............................................................. 159 Permanent Local Housing Allo cation Special Revenue Fund ............................................................ 160 Gas Tax Special Revenue Fund .......................................................................................................... 161 Road Maintenance and Rehab ilitation Special Revenue Fund ........................................................... 162 Advance Planning Special Revenue Fund ...................................................................................... .... 163 Solid Waste Special Revenue Fund ........................................................................................... ......... 164 Parks and Recreation Special Revenue Fund ...................................................................................... 165 Traffic Impact Fee Special Revenue Fund .......................................................................................... 166 Commercial Linkage Fee Special Revenue Fund ............................................................................... 167 Landfill Bonds Debt Service Fund ........................................................................................... .......... 168 General Obligation Bo nds Debt Service Fund .................................................................................... 169 2% Hotel Tax Capital Projects Fund ......................................................................................... ......... 170

Internal Service Funds:

Combining Statement of Net Position ......................................................................................... .............. 172 Combining Statement of Revenues, Expe nses, and Changes in Net Position ........................................... 174 Combining Statement of Cash Flows ........................................................................................... ............. 176

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Annual Comprehensive Financial Report
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Table of Contents (Continued)

iii

Page
FINANCIAL SECTION (Continued)

Supplementary Information (Continued):

Fiduciary Funds:

Custodial Funds - Combining Stat ement of Fiduciary Net Position ......................................................... 182 Custodial Funds - Combining Statement of Changes in Fiduciary Net Position ...................................... 183 Private Purpose Trust Funds - Combining Statement of Fiduciary Net Position ...................................... 187 Private Purpose Trust Funds - Combining Statem ent of Changes in Fiduciary Net Position ................... 188

General Capital Projects Fund:

Schedule of Assessments and Impact Fees and Related Expenditures ..................................................... 191

STATISTICAL SECTION (Unaudited)

Table of Contents ................................................................................................................................................... 195

Financial Trends:

Net Position by Component – Last Ten Fiscal Years ............................................................................ .......... 196 Changes in Net Position – Last Ten Fiscal Years .............................................................................. .............. 198 Governmental Activities Tax Revenues by Source – Last Ten Fiscal Years .................................................. 203 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................................. .. 204 Changes in Fund Balances of Government al Funds – Last Ten Fiscal Years ................................................. 206

Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................... 208 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................................ . 209 Principal Sales Tax Producers – Current Year and Nine Years Ago .............................................................. . 210 Principal Property Taxpayers – Cu rrent Year and Nine Years Ago ................................................................ 211 Property Tax Levies and Collecti ons – Last Ten Fiscal Years ........................................................................ 213

Debt Capacity:

Ratios of Outstanding Debt by Ty pe – Last Ten Fiscal Years ......................................................................... 214 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ............................................................ 216 Direct and Overlapping Governmental Activities Debt .......................................................................... ......... 217 Legal Debt Margin Information – Last Ten Fiscal Years ........................................................................ ........ 218 Pledged Revenue Coverage – Last Ten Fiscal Years ...................................................................................... 220

Demographic and Economic Information:

Demographic and Economic Statis tics – Last Ten Fiscal Years ..................................................................... 221 Principal Employers – Current Year and Nine Years Ago ........................................................................ ...... 222

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Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

Table of Contents (Continued)

iv

Page

STATISTICAL SECTION (Unaudited) (Continued)

Operating Information:

Full Time Equivalent City Government Empl oyees by Function – Last Ten Fiscal Years ............................. 223 Operating Indicators by Functi on – Last Ten Fiscal Years ............................................................................. 224 Capital Asset Statistics by Func tion – Last Ten Fiscal Years .......................................................................... 225

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2Finance Department
330 West 20th Avenue
San Mateo, California 94403
p: 650.522.7100
f: 650.522.7101
http://www.cityofsanmateo.org

March 8, 2024

Residents of the City of San Mateo,
Honorable Mayor, and
Honorable Members of the City Council

We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for the City of San Mateo, California, for the fiscal year ended June 30, 2023. This financial report contains a complete set of audited financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as promulgated by the Governmental Accounting Standards Board (GASB).

This report consists of management’s representations concerning the finances of the City and its blended component unit. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the City. To provide a reasonable basis for making those representations, management of the City has established a comprehensive internal control framework that is designed to both protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with U.S. GAAP. The first note in the Notes to the Financial Statements provides a detail ed explanation of the City’s significant accounting policies. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City’s Charter, Section 5.26 requires an annual audit of the basic financial statements of the City.

The Pun Group , a firm of licensed certified public accountants, h as audited the City ’s financial statements. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City and its blended component unit for the fiscal year ended June 30, 2023, are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by m anagement; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified (“clean”) opinion on the City’s basic financial statements as of and for the year ended June 30, 2023. The independent auditors’ report is presented as the first component of the financial section of this report.

The analysis of the financial condition and the result of operations are in the Management’s Discussion and Analysis (MD&A) section immediately following the auditor’s report. This transmittal letter is designed to complement the MD&A and should be read in conjunction with it.

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THE REPORT

The ACFR is presented in three sections:

• The Introduction section includes this letter of transmittal, City Council introduction, the City’s organizational chart, and certificates of achievement.

• The Financial section includes the rep ort of the independent auditors; Management’s Discussion and Analysis (MD&A); the basic financial statements, including the government- wide financial statements; and the accompanying notes to the financial statements. The Financial Section also includes the fund financial statements, including the governmental funds financial statements, the proprietary funds financial statements, the fiduciary funds financial statements, and the combining individual funds financial statements for the non-major governmental funds and the internal service funds. Required supplementary information other than the MD&A is also included in the financial section.

• The Statistical section includes selected financial and demographic information, presented on a multi-year basis.

ACFR Organization

This ACFR includes all funds of the City and the City’s component unit, which is a le gally separate organization for which the City is financially accountable or whose relationship with the City is of a nature and significance that would cause the City’s financial statements to be incomplete were it not included.

In addition to the financial audit, the City typically undertakes a single audit in conformance with the Single Audit Act Amendments of 1996 and the Uniform Guidance.

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CITY PROFILE

The City of San Mateo is in San Mateo County and is situated 19 miles south of San Francisco and 30 miles north of San Jose. The City covers an area of 15.4 square miles and includes tidelands from the Bay to the east and coastal mountains to the west. With its Mediterranean climate, residents enjoy warm, sunny summers and mild damp winters, ideal for various recreational activities in the City’s many neighborhoods and regional parks.

One of the larger suburbs of the San Francisco Peninsula, San Mateo is bordered by the cities of Burlingame to the north, Foster City to the east, Belmont to the south, and H illsborough to the west.

According to the State Department of Finance, the City San Mateo had an estimated population of 103,300 on January 1, 2023, making it the largest city in San Mateo County

CITY HISTORY
The first inhabitants of what is now the City of San Mateo were members of a tribe of the Ohlone Indians (called Coastanoans by Spanish explorers). This Tribe lived in the area from South San Francisco to Belmont for at least 4,000 years before explorers first arrived on the Peninsula. In 1776, Spanish explorers came to today's San Mateo. During a scouting trip to locate a place to start a colony on the Peninsula, Lieutenant Colonel Juan Bautista de Anza, Padre Pedro Font, Lieutenant Jose Joaquin Moraga, and eleven soldiers set up camp in San Mateo. Father Font named the creek that they slept by "San Mateo Creek." In 1793, the mission fathers in San Francisco created an outpost of the mission on the Peninsula. The outpost was the first building built in San Mateo by non-natives.

In 1822, California received word of Mexico's independence from Spanish rule. The Mexican Land Grants (1835) would leave a few residents owning vast expanses of land in the area. These ranches were so large that what is now the City of San Mateo is comprised of only two land grants - Rancho San Mateo and Rancho de las Pulgas. The year 1889 saw many important events in the developing San Mateo community. Under head engineer, Herman Schussler, the Crystal Springs dam was completed.

The completion of this project assured that the people of San Mateo would have quality drinking water, allowing for further growth in the area.

In the same year , William Howard had part of his estate opened for subdivision, the first successful attempt at selling smaller plots of land. With this, the middle class moved to San Mateo. In this same year, Richard H. Jury and Charles N. Kirkbride established the “Leader”, San Mateo's first successful newspaper and one of the earliest proponents of the incorporation of San Mateo. On September 3, 1894, with a vote of 150 in favor and 25 against incorporation, San Mateo became a town.

CITY ORGANIZATION
The City was incorporated in 1894 and was originally chartered in 1922. The current charter was adopted in 1971 and revised in 2002. Since 2002, there have been three other voter -approved amendments to the charter. San Mateo has a Council -Manager form of government. F ive Council members each serve for four- year terms. The City recently completed a transition from at -large elections to district elections, beginning in the November 2022 election, where three of the five districts were open. The remaining two districts will be open for election in November 2024. The Council selects a Mayor from among its members each December for a one-year term. The City Manager is appointed by the Council and serves as chief executive officer responsible for the day -to-day administration of

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City affairs. The City Council also appoints a City Attorney. There are twelve Advisory Boards and Commissions, nine of which are appointed by the City Council.

The City provides a wide range of municipal services, i ncluding police, public works, parks and recreation, library, planning and zoning, building, sewer enterprise , street maintenance, economic development, and general administrative s ervices. The City is part of a joint powers agreement with the cities of Belmont and Foster City that provides fire services to all three cities through the San Mateo Consolidated Fire Department. The City offers 35 parks, six recreation centers, an 18-hole golf course, and three libraries , including a state -of-the-art main library. California Water Service, a private company, provides water to City residents.

The City's management has adopted a set of "organizational principles" that reflect the City’s management philosophy. These principles are:

• Engaged and accountable workforce;
• Working as one organization;
• Maintaining long-term perspective;
• Seeking constant improvement; and
• Leading through informed risk-taking.

These principles, which were adopted in 2016, are intended to guide management actions throughout the City organization. The goals of City management are to see that necessary and desired services are provided in an efficient and effective manner, and that planning and continued improvement take place to provide for the community's future.

The City operates on a two -year budget cyc le. The two -year budget process requires that each department submit two one -year expenditure plans and revenue estimates to the City Council for approval. In each alternate year , the department directors present mid- cycle performance reports to the City Manager and City Council summarizing budget status to date and seeking approval for year- two funding. The City utilizes a five- year plan for capital improvements. The plan serves as a guide for allocation of future resources.

The City maintains budgetary controls that have the objective of ensuring compliance with legal provisions embodied in the annual appropriated budget submitted by the City Manager and adopted by the City Council. The annual operating budget and the long -term capital improvement plan are adopted on or before June 30 th by City Council. All budget amendments require City Council approval. The two-year business plan for operations is adopted in June of every even-numbered year and is amended in the second year of the plan as part of the annual budget development process.

Budgetary control (the level at which expenditures and encumbrances cannot legally exceed the appropriated amount) is established at the department level within individual funds. Departmental operating budgets may be reallocated among programs within a department and within the same fund, but expenditures may not exceed annually budgeted appropriations at the department/fund level without Council approval. Project- length budgets are adopted f or the General Fund, some special revenue funds , and all capital project funds. Capital improvement expenditures may not exceed budgeted amounts without Council approval.

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The City has an Audit Committee consisting of the Mayor and Deputy Mayor. The Audit Committee is responsible for the selection and management of the external auditor. The Audit Committee discusses any matters related to the audit with the external auditor and accepts the results of the annual financial audit.

LOCAL AND REGIONAL ECONOMY

The information presented in the financial statements is perhaps best understood when it is considered from a broader perspective of the specific environment in which the City operates. The City is one of the major centers of economic activity in San Mateo County, serving as a business, recreational, educational, and cultural hub.

The diverse economy of San Mateo includes a strong employment base in the technology, health care, financial services, government, and retail fields. Companies based in San Mateo include Franklin Templeton, Fisher Investments, Sony Interactive Entertainment (Sony PlayStation) , Roblox, SurveyMonkey, Verkada NetSuite, and GoPro. The City has a vibrant and pedestrian -friendly downtown and the Hillsdale Mall and Bridgepointe Shopping Center provide unique retail and entertainment experience to the region.

The local economy has continued to recover from the pandemic , with the local real estate market serving as a major driver. Over the past 12 years, including the pandemic period, the local real estate market has experienced a significant year-over-year increase in assessed value. According to data from the San Mateo County Assessor, San Mateo’s total assessed value for 2022-23 is $34.5 billion, which is an 8.1 percent increase over the previous year.

Over the past two years, in response to high inflation, the Federal Reserve (Fed) has tightened monetary policy by increasing the Federal Funds Rate, which is the interest rate that banks charge each other to borrow or lend excess reserves overnight. This has led to a notable increase in the average 30 -year mortgage rate as shown in the graph below.

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High interest rates have a cooling effect on the real estate market. As depicted in the chart below, San Mateo’s median home sale prices decreased during fiscal year 2022-23. However , with continued demand and a limited housing inventory, prices are holding up. Median home sale prices have now rebounded to $1.8 million to $1.9 million in 2023.

Real Estate Market Data – Single Family Residential Homes

Source of information: San Mateo County Association of Realtors, Market Data The labor market remains strong, with unemployment rates steadily declining since the peak of the pandemic. As of October 2023, unemployment rates stand at 2.6%, 3.2%, and 4.8% in the city, county, and state, respectively.

Unemployment rates

Source: State of California Employment Development Department (EDD) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Oct 2023
State of California 12.2 11.7 10.4 8.9 7.5 6.2 5.5 4.8 4.3 4.0 10.1 7.3 4.2 4.8 County of San Mateo 8.4 7.5 6.4 5.3 4.2 3.4 3.0 2.7 2.3 2.0 6.9 4.6 2.4 3.2 City of San Mateo 8.1 7.3 6.2 5.1 4.1 3.3 2.9 2.6 2.1 1.9 6.1 4.1 1.9 2.6

0.0 2.0

4.0 6.0

8.0 10.0

12.0 14.0
State of California County of San Mateo City of San Mateo

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While the local economy continues to grow, there are several economic challenges that could affect local conditions in the future. Two of the most pressing concerns for the City are high interest rates put pressure on local housing markets, and the strain on city operations due to a strong labor market and high inflation, which drive up the costs of providing essential city services. These conditions will continue to be closely monitored going forward to ensure course corrections to the long-term financial plan are made as necessary.

CITY FINANCIAL POLICIES & PLAN

Formal financial policies and prudent operating practices have enabled the City to maintain core services and minimize the impact of economic fluctuations on residents as much as possible. Formal policies exist in areas such as balanced budgets, revenue diversification , operating expenditures, reserves, investments, and debt.

Trust has been built over the years between the City and the community through establishing and following formal financial policies, as well as maintaining prudent operating practices. This trust and confidence were demonstrated by the voters in San Mateo, who in November 2009 approved a ¼ cent general sales tax on purchases made in the City. This measure generated $ 6.1 million in additional revenue for FY 2018-19 to support General Fund operations. With this tax set to expire April 2018, the voters again demonstrated their confidence in the City’s financial management by voting in November 2015 to extend the tax until 2048 to fund critical infrastructure and enhancements to public safety services. San Mateo voters approved Measure CC in November 2022 to increase the real property transfer tax from 0.5% to 1.5% for properties sold or transferred that are valued at $10 million or more.

REVENUE ADMINISTRATION
The City’s two main sources of revenue to fund operating expenditures are property and sales taxes, which make up over 67 percent of total General Fund revenues. In addition, the City’s revenue administration includes a review of all fees, fines, and charges for services to ensure the charges are meeting cost -recovery goals. One -time and unpredictable revenues are spent on one- time expenditures, such as equipment replacement, or transferred to capital improvement funds for repair and rehabilitation projects.

EXPENDITURE ADMINISTRATION
City departments and the Finance Department carefully review expenditure budgets. The department directors are responsible for containing ex penditures within their Council -approved budget appropriations. The City maintains an encumbrance accounting system as an additional means of budgetary control. Encumbered amounts in the operating budget lapse one year after the end of the fiscal year.

RESERVES
The City Council’s budget policy for the use of reserves varies depending on the reserve type, but generally limits the use of reserves to respond to revenue shortfalls, unanticipated expenditures, severe economic downturns, or natural disasters. The policy further states that use of reserves should be combined with structural changes to bring the budget back into balance if it is out of balance . The General Fund reserve policy adopted by the City Council seeks to reflect three months of General Fund budgeted operating expenditures, or 25 percent.

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As of the fiscal year ended June 30, 2023, t he General Fund increased its fund balance from $111.5 million to $117.9 million, of which $0.6 million was restricted for debt services, $9.3 million was assigned for specific purpose s, and $107.7 million was unassigned. The unassigned fund balance includes the 25% operating reserve, the housing reserve, and the rainy-day reserve. Based on adopted 2022-23 budget, the 25% operating reserve for 2022-23 was $35.6 million.

The Sewer Fund’s total operating revenues were $78.4 million for the fiscal year ended June 30, 2023, an increase of $6.7 million (9.3%) compared to the prior fiscal year , driven by the approved sewer service rate increase of 13%. Total operating expenses were $30.0 million, staying flat as compared to the prior year. The Sewer Fund generated $ 48.3 million in operating income, which was the primary factor in cash and investments increasing to $138.4 million – a 34.2% increase compared to the prior fiscal year, and 461% of the fund’s operating expenses, well above the enterprise’s reserve policy target of 33%. The strong available cash position of the sewer enterprise ensures liquidity during the active construction period of the Clean Water Program, a 10-year, $1.0 billion capital improvement program to upgrade and expand the jointly owned wastewater treatment plant with the Estero Municipal Improvement District/City of Foster City, and improvements to the City of San Mateo’s collection facilities. In addition to maintaining a strong cash position, t he favorable operating surplus also maintains the Sewer Enterprise Fund’s continued high debt service coverage ratio of 2.18X. Both the cash position and debt service coverage affirm the high -quality credit rating the Sewer Enterprise received of AA- from S&P Global Ratings (formerly known as Standard & Poor’s) and AA rating from Kroll Bond Rating Agency.

There are additional reserves established in the City’s other funds for vehicle and equipment replacement, workers’ compensation, general liability, and capital improvements.

DEBT ADMINISTRATION
The City manages the issuance of new debt and proactively communicates with the investment community in the administration of its outstanding debt. In doing so, the City seeks to ensure that debt is issued prudently and affordably, and bondholders are provided all the information required by the Municipal Securities Rulemaking Board as governed by the Securities and Exchange Commission.

Proposition 13 amended the State Constitution by requiring California cities to obtain voter approval prior to issuing general obligation bonds. State statutes further limit general obligation bonded debt to 15% of the assessed value of all real and personal property within the City. A s of June 30, 202 3, the City’s general obligation bonded debt remaining balance of $15.7 million, including unamortized bond premium, amounted to 0.3% of the $5.3 billion legal debt limit.

According to standard measures used by the primary credit rating agencies to assess debt (e.g. fund balance as a percent of operating expenses, debt-to-assessed valuation ratios, debt per capita, etc.), the City’s level of direct debt obligations is considered low in comparison to similarly sized cities. Rating agencies cite the City’s strong financial management and prudent fiscal policies as credit strengths. As of June 30, 2023, the City’s rating for general obligation bonds is AAA by Standard & Poor’s and Aaa from Moody’s Investor Service . The City of San Mateo Joint Powers Public Financing Authority manages two bond issues that have $17.3 million in balance outstanding.

Additional information pertaining to the City’s outstanding long-term debt can be found under Long- Term Debt (Note 7) in the Notes to the Basic Financial Statements and in the Statistical Section under Legal Debt Margin information.

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CASH MANAGEMENT
The City pools cash from all operating sources to manage cash flow and invest idle funds. The Finance Director serves as the City’s Treasurer and, utilizing the services of a third -party asset management advisor, oversees the investment of funds in accordance with the City Council -adopted Investment Policy and Government Code Sections 53601 and 56535. The City Council receives monthly treasury reports, and reviews and approves the City’s Investment Policy each fiscal year.

LONG-TERM FINANCIAL PLANNING
The City of San Mateo has a long tradition of disciplined and prudent fiscal management. To address the significant impacts of the Great Recession, the City Council adopted various strategies for financial sustainability that have been successfully implemented to achieve not only a balanced General Fund budget, but also create a mechanism for the City to accumulate sufficient resources to better position its General Fund to be prepared for economic retraction or disaster. The City’s prudent efforts to adopt a reserves policy and accumulate additional reserves during the years of economic prosperity have proven prescient within context of the immediate and severe financial impact from the pandemic.

The City continues to adhere to a planning process that focuses on financial sustainability. To this end, the City annually updates a long -term General Fund financial projection model designed to inform decision makers of the long- term impacts of near-term financial proposals. The City also maintains a five-year long-range capital planning process and capital improvement plan that is annually updated.

This plan drives capital project funding decisions and periodic new bonded debt issuances for larger capital infrastructure investments.

For General Fund operations, revenues and expenditures are forecasted out for ten years to continually assess the long -term structural balance of that fund and allow adequate time for thoughtful course correction if a structural imbalance occurs. General Fund’s major revenues will be monitored closely, including uncertainties that may impact revenue growth. These uncertainties include VLF shortfall, slowing sales tax, economic conditions and events that affect Transient Occupancy Tax (TOT) and real property transfer tax revenues.

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MAJOR INITIATIVES

COMMUNITY FLOOD AND STORM PROTECTION INITIATIVE
Property owners in the City of San Mateo approved a stormwater fee with majority votes. San Mateo was hard hit by the severe winter storms in fiscal year 2022-23. The event raised community awareness of the unfunded needs for storm and flood control, making it a top priority within the community. The City needs a reliable and dedicated funding source to improve the stormwater system, much of which is over 50 years old and includes 130 miles of storm pipelines, 20 miles of open creeks and drainage channels, 10 pump stations and a flood control lagoon.

The approved Community Flood and Storm Protection initiative will generate approximately $4 million annually, starting in the fiscal year 2024-25. To ensure the funds were managed effectively, the City will establish a stormwater enterprise fund to account for the revenues and related expenses.

The fee structure has been carefully designed to ensure equity and fairness, reflecting the actual expenses associated with delivering the service while adhering to the guidelines outlined in Proposition 218.

The stormwater fee will provide consistent and sustainable annual funding to make meaningful improvements to the storm and flood control system. It positions San Mateo to be better prepared and more resilient against future storms and weather challenges. While more work lies ahead, this is a significant step towards enhancing the community’s safety and resilience for the years to come.

GENERAL PLAN UPDATE
The General Plan is the City’s long-range vision for how the City will look, feel, and grow over the next 20 years. The General Plan is required to comply with certain state laws and requirements as well as address local community needs and issues. The San Mateo General Plan includes a Vision Statement and Introduction and eight Elements (chapters): Land Use; Circulation; Housing; Community Design and Historic Preservation; Conservation, Open Space and Recreation; Public Services and Facilities; Safety; and Noise.

The General Plan 2040 was built upon the City’s current 2030 General Plan to address new and emerging issues and plan for a more equitable future. The final General Plan has been published, and it reflects community input and Council’s direction provided on the Draft General Plan during the Summer/Fall of 2023. The final General Plan is scheduled for the Planning Commission review in January 2024 and City Council public hearings in March 2024.

HOUSING ELEMENT UPDATE
The Housing Element, a chapter in the City’s General Plan, is required by state law to be updated every eight years, meet specific requirements for content, and must be submitted to the state for approval.

The City’s Regional Housing Needs Allocation (RHN A) for the next statewide housing cycle (2023- 2031) is 7,015 new housing units. The updated Housing Element must show that there is enough land zoned with sufficient density to accommodate the RHNA. In addition, it needs to include policies and strategies that promote a mix of housing types in an equitable manner, infill development, and greenhouse gas emission reductions, among other things, and affirmatively further fair housing practices.

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Following multiple rounds of review and revisions with the State Department of Housing and Community Development (HCD), this past January HCD found that the City’s updated Housing Element was in substantial compliance with the State Housing Laws. The City is now moving forward with adoption of the Housing Element, with public hearings before the Planning Commission in April and the City Council in May and culminating with submittal to HCD to achieve certification. Once adopted, the City will then need to proceed with implementation of over 100 housing related policies and programs contained in the Housing Element in order to remain in compliance with State law.

BAY MEADOWS PHASE II DEVELOPMENT
Bay Meadows Phase II is an 83 -acre transit-oriented mixed-use redevelopment project at the former Bay Meadows Racetrack. The development, which is adjacent to the Hillsdale Caltrain Station, includes 1,048 residential units, 68 of which are affordable units, 1.2M square feet of office space, 67,000 square feet of retail and restaurant space, a 450- student private high school, Nu eva School, and three public parks. Infrastructure construction of the project began in 2009 and construction of the first townhomes began in 2013. Over 80 percent of the project has now been completed or is currently under construction. Office block STA 5 was completed in summer 2023 and construction of residential block RES 6 (54 apartment units) is nearing completion. The final two mixed -use blocks, MU2 and MU3, which includes 67 apartment units, are approved, but construction is not anticipated to start until 2025 due to current market conditions.

CONCAR PASSAGE
Concar Passage is a five-story mixed-use project located on the 14.5-acre Concar Shopping Center site on Concar Drive between South Grant Street and South Delaware Street. Current shopping center tenants include Trader Joe’s, Peninsula Ballet Theatre, Ross Dress for Less, The Pantry, Rite-Aid, T.J.

Maxx, Shane Co., and 7-Eleven. The project will demolish the existing commercial buildings and construct 961 apartment units and approximately 40,000 square feet of commercial/retail space. The project includes 73 affordable housing units, associated parking, and three acres of community open space. The project was approved by the City in August 2020. However, due to existing leases for shopping center tenants and current market conditions, the ownership group requested and was granted a two-year extension to execute the Development Agreement and begin the permitting process. Thus, construction is not anticipated to start until the end of 2025 or 2026.

PENINSULA HEIGHTS
Peninsula Heights is a mixed residential project located on a 15.5-acre former office park site along Campus Drive to the west of the Peninsula Golf and Country Club. The project includes 290 single- family, townhouse, and condominium units, with 30 units designated as affordable. The project was approved by the City in December 2020, and site work started in fall 2021. The project is currently under construction, with completion anticipated in 2025.

OTHER HOUSING PROJECTS
In addition to the housing being added as part of the larger projects outlined above, there are a number of other significant housing projects in various stages of the development process that will be adding new housing units around the City in the coming years:

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Projects Under Construction
• Kiku Crossing Affordable Housing Project (225 affordable apartment units) • 1, 2, & 3 Waters Park Dr. “One 90” (190 single-family and townhome units) • 1650 S. Delaware Street Apartments (73 apartment units)

Approved Projects Not Yet Under Construction
• Hayward Park Station Residences (189 apartment units) • 477 9th Ave. (mixed-use office and 120 apartment units) • Block 21 (mixed-use office and 111 apartment units)
• Hillsdale Terrace (mixed-use commercial and 68 condominium units) • 616 S. B Street, Nazareth Vista (mixed-use commercial and 48 apartment units) • 1919 O’Farrell (49 apartment units)
• 222 E. 4th Ave., Draeger’s Grocery (mixed-use office, grocery, and 10 affordable units)

Projects Under Review Not Yet Approved
• 1855 S Norfolk St. (260 apartment units)
• 445 S. B St Public-Private Partnership (mixed-use office with 72 affordable apartment units) • Block 20 (mixed-use office and 86 apartment units)
• 668 E. 3rd Ave (mixed-use office with 69 apartment units) • 222 S. Fremont St (41 condominium units)

SEWER UTILITY INFRASTRUCTURE NEEDS
The Clean Water Program is a major City initiative and 10 -year capital improvement program for the rehabilitation and upgrade of the sewer utility that began in 2015 and involves approximately $1 billion in improvements to the wastewater treatment and collection systems in order to comply with the State of California Water Quality Control Board’s cease and desist order and wastewater treatment discharge permit. The program is expected to be funded with a combination of operating surpluses, sewer charge rate increases, capital contributions from the utility’s regional customers, bond financing , and loans through the Water Infrastructure Finance and Innovation Act (WIFIA) from the U. S. Environmental Protection Agency (EPA). In addition, the City closed state loans through the State Revolving Fund (SRF) to complement the funding approach. Long-range capital improvement plans and an updated Integrated Sewer Master Plan to meet the cease and desist order and discharge permit requirements have been developed and projects within the overall Clean Water Program are underway.

SAN MATEO CONSOLIDATED FIRE DEPARTMENT
For nearly the past decade, the City of San Mateo, the City of Belmont/Belmont Fire Protection District, and the City of Foster City/Estero Municipal Improvement District have been working diligently to bring together fire services with the goal of providing a high level of shared fire, rescue, and emergency medical services to all three communities, while also achieving a cost -efficient service delivery. The diligence culminated into the formation of a Joint Powers Authority (JPA) that was created on November 22, 2017, to form the San Mateo Consolidated Fire Department (SMC Fire). SMC Fir e commenced operations on January 13, 2019, and continues to provide integrated and comprehensive emergency response services to all three communities. The City transferred its fire operations, including fire protection activities, to SMC Fire concurrent with commencement of operations. SMC Fire contracts with the City of San Mateo for financial and human resources services.

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AWARDS AND ACKNOWLEDGEMENTS

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the year ended June 30, 2023. The Certificate of Achievement is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports. To be awarded a Certificate of Achievement, the City must publish an easily readable an d efficiently organized ACFR.

This report must satisfy both U .S. GAAP and applicable legal requirements. This was the thirtieth consecutive year that the City has received this award. A Certificate of Achievement is valid for one year only. We believe that the City’s current ACFR continues to conform to the Certificate of Achievement program requirements, and we will submit it to the GFOA to determine its eligibility for another certificate.

The preparation of this ACFR could not have been accomplished without the efficient and dedicated service of the highly qualified staff in the Finance Department. The dedication and cooperation of staff in all City departments in the administration of financial policies throughout the year is also appreciated. We also acknowledge the thorough and professional manner in whic h our independent auditors, The Pun Group, conducted their audit.

In closing, City staff wishes to express deep appreciation to the City Council for their leadership, support, and responsiveness to the financial concerns of the City.

Respectfully submitted,

Alex Khojikian, City Manager

Karen Huang, Finance Director

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City of San Mateo City Council Members
2023
Amourence Lee
Mayor
Lisa Diaz Nash
Deputy Mayor
Rob Newsom Jr.

Council Member
Adam Loraine
Council Member
Rich Hedges
Council Member
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City Organizational Chart

COMMUNITY

DEVELOPMENT
PUBLIC

WORKSPOLICE PARKS &

RECREATION LIBRARY INFORMATION

TECHNOLOGYFINANCE HUMAN

RESOURCES

OPERATING DEPARTMENTS

CITY MANAGER CITY CLERK

CITY ATTORNEY

CITY COUNCIL

COMMUNITY OF SAN MATEO

BOARDS & COMMISSIONS
Civic Arts Committee
Community Relations Commission
Investment Advisory Committee
Library Board
Measure S Oversight Committee
Mosquito and Vector Control District
Parks & Recreation Commission
Personnel Board
Planning Commission
Senior Citizens Commission
Sustainability and Infrastructure Commission
Y outh Advisory Council
Mayor
Deputy Mayor
Council Member
Council Member
Council Member
City Manager
City Attorney
City Council - 2023
Amourence Lee
Lisa Diaz Nash
Rob Newsom Jr.

Adam Loraine
Rich Hedges
Alex Khojikian
Prasanna Rasiah
Assistant City Manager
City Clerk
City Librarian
Interim Community Development Director
Finance Director
Interim Human Resources Director
Information Technology Director
Parks and Recreation Director
Police Chief
Public Works Director
Department Heads
Christina Horrisberger
Patrice Olds
James Moore
Zachary Dahl
Karen Huang
Shawnna Maltbie
Pete Owen
Joanne Magrini
Ed Barberini
Matt Fabry

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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Mateo
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and Members
of the City Council of the City of San Mateo
San Mateo, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remain ing fund information of the City of Sa n Mateo, California (the “City”), as of and for the year ended June 30, 20 23, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each majo r fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fi nancial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under tho se standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements secti on of our report. We are requi red to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

Implementation of New GASB Pronouncements

As discussed in Note 1 to the basic financial statem ents, the Authority implemen ted Governmental Accounting Standards Board (“GASB”) Statement No. 96, Subscription-Based Information Technology Arrangements . Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the prep aration and fair presentation of the fi nancial statements in accordance with accounting principles generally accepted in the United Stat es of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate wh ether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ab ility to continue as a going concern for twelve months beyond the financial st atement date, including any currently known information that may raise substantial doubt shortly thereafter.

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To the Honorable Mayor and Members
of the City Council of the City of San Mateo
San Mateo, California