Agenda packet — San Rafael City Council, November 17, 2025 (part 1 of 2)

AGENDA

SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 17, 2025
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Webinar: https://tinyurl.com/city-council-2
Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 860-6190-5675#
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

How to participate in the meeting:
• You are welcome to come to the meeting and provide public comment in person. Each speaker will have 2-minutes to provide public comment per agenda item. • Submit your comments by email to [email protected] by 4:00 p.m. the day of the meeting.

If you experience technical difficulties during the meeting, please contact [email protected].

OPEN SESSION

1. None

CLOSED SESSION

2. Closed Session: None
CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

CONSENT CALENDAR:

The opportunity for public comment on consent calendar items will occur prior to the City Council’s vote on the Consent Calendar. The City Council may approve the entire consent calendar with one action. In the alternative, items on the Consent Calendar may be removed by any City Council or staff member, for separate discussion and vote.

4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Special City Council Meetings of November 6, 2025 and November 12, 2025 (CC)
Recommended Action - Approve minutes as submitted
b. Smoking Ordinance Amendments
Final Adoption of Ordinance 2055: An Ordinance Amending Chapter 9.04 of the San Rafael Municipal Code, the City’s Clean Indoor and Outdoor Air and Health Protection, to Prohibit 2 All Smoking in Duplexes and Multi-Family Residences and to Allow Small Claims Courts to Grant Injunctive Relief (CC)
Recommended Action – Final adoption of Ordinance 2055
c. Agreements for On-Call Environmental Consulting Services Resolution Authorizing the City Manager to Execute Professional Services Agreements for On-Call Environmental Consulting Services with Rincon Consultants, Inc. and AECOM in an Amount Not to Exceed $500,000 for Each Agreement and Sicular Environmental Consulting in an Amount Not to Exceed $200,000; and Authorizing the Finance Director to Process Supplemental Budget Appropriations within the Development Services Fund (207) on a Continual Basis, Not to Exceed Available Funds (CED)
Recommended Action – Adopt Resolution
d. Installation of a Mural in the Pickleweed Library’s New Children’s Room at 50 Canal Street
Resolution Approving an Art Installation Proposed by Youth In Arts for an Artistic Youth Mural titled ‘Our Community, Our Story’ in the New Children’s Room at the Pickleweed Library, Located at 50 Canal Street (LR)
Recommended Action – Adopt Resolution
e. City Quarterly Investment Report
Acceptance of City of San Rafael Quarterly Investment Report for the Quarter Ending September 30, 2025
Recommended Action – Accept report
f. US 101/I-580 Multimodal and Local Access Improvement Project Memorandum of Understanding
Resolution Authorizing the Mayor to Execute a Memorandum of Understanding Between the Transportation Authority of Marin (TAM) and the City of San Rafael for the US 101/I580 Multimodal and Local Access Improvement Project (PW) Recommended Action – Adopt Resolution
g. “Shop San Rafael” Proclamation
Proclamation Supporting “Shop San Rafael” (CED)
Recommended Action – Receive and file

OTHER AGENDA ITEMS

5. Other Agenda Items
a. Ralph M. Brown Act (Government Code Section 54950, Et. Seq.) Compliance Resolution Responding to a Cease and Desist Demand Dated November 3, 2025 with an Unconditional Promise - Without Admitting Any Violation of the Brown Act - To Cease and Desist Certain Conduct Pursuant to Government Code Section 54650.2(c) Recommended Action – Adopt Resolution

PUBLIC HEARINGS

6. Public Hearings
a. Declaration of Shelter Crisis and Approval of Related Actions and Acquisition of the Property Located at 350 Merrydale Road (APNS 179-041-27 & 179-041-28) for Use as an Interim Shelter and Affordable Housing
3 City Council of the City of San Rafael Consideration of: (CM) i. Resolution Declaring a Shelter Crisis Pursuant to Government Code Section 8698, Et.

Seq.; California Environmental Quality Act (CEQA) Determination: Not a Project Per CEQA Guidelines 15378(b)(2),(4),(5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency]
Recommended Action – Adopt Resolution
ii. Urgency Ordinance Adopting Reasonable Local Standards and Procedures for Homeless Shelters Pursuant to Government Code Section 8698; Et. Seq.; CEQA Determination:

Not a Project Per Government Code Sections 65660(b), 65662; CEQA Guidelines 15378(b)(2), (4), (5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency]
Recommended Action – Waive further reading, refer to it by title only, and adopt Urgency Ordinance
iii. Uncodified Ordinance Adopting Reasonable Local Standards and Procedures for Homeless Shelters Pursuant to Government Code Section 8698, Et. Seq.; CEQA Determination: Not a Project Per Government Code Sections 65660(b), 65662; CEQA Guidelines 15378(b)(2), (4), (5); Alternatively Exempt Pursuant to CEQA Guidelines 15061(b)(3) [Common Sense]; 15269(c) [Emergency]
Recommended Action – Introduce the Ordinance, waive further reading and refer to it by title only
iv. Resolution Authorizing the City Manager to Negotiate and Execute a Grant Agreement Between the City and County of Marin in the Amount of $8 Million and Affordable Housing Agreement in a Form to be Approved by the City Attorney to Facilitate the Acquisition of Real Property Located at 350 Merrydale Road (APNS 179-041-27 & 179- 041-28) for Use as an Interim Shelter and Permanent Affordable Housing and to Accept the Full Amount of the Grant and Appropriate $7.0 Million to Cover Costs Related to Acquisition; CEQA Determination: Not A Project Per Government Code Sections 8698.4(a)(4); 65660(b), 65662; Public Resources Code Section 21080(b)(1) [Ministerial Project]; CEQA Guideline 15268(B) [Ministerial Project]; Exempt Pursuant To CEQA Public Resources Code Section 15183 [Consistent With General Plan Policies]; CEQA Guidelines 15269(c) [Emergency]; 15332 [Infill]
Recommended Action – Adopt Resolution
v. Resolution Authorizing the City Manager to Negotiate and Execute a Purchase and Sale Agreement in the Amount of $6.7 Million, Plus Associated Costs, to Execute a Certificate Of Acceptance and Other Documents Necessary to Complete the Purchase of the Real Property Located At 350 Merrydale Road and to Execute a Professional Services Agreement with Cornish and Carey Commercial (D/B/A Newmark) in an Amount Not to Exceed $201,000 for Real Estate Brokerage Services Rendered to the City for the City’s Purchase of 350 Merrydale Road (APNS 179-041-27 & 179-041-28); CEQA Determination: Not a Project Per Government Code Sections 8698.4(a)(4); 65660(b), 65662; Public Resources Code Section 21080(b)(1) [Ministerial Project]; CEQA Guideline 15268(b) [Ministerial Project]; Exempt Pursuant To CEQA Public Resources Code Section 15183 [Consistent With General Plan Policies]; CEQA Guidelines 15269(c) [Emergency]; 15332 [Infill]; 15061(b)(3) [Common Sense]; 15378(b)(4) [Fiscal Activity] Recommended Action – Adopt Resolution
4 OPEN TIME FOR PUBLIC EXPRESSION
The public is welcome to address the City Council at this time on matters not on the agenda that are within its jurisdiction. Please be advised that pursuant to Government Code Section 54954.2, the City Council is not permitted to discuss or take action on any matter not on the agenda unless it determines that an emergency exists, or that there is a need to take immediate action which arose following posting of the agenda. Comments may be no longer than two minutes and should be respectful to the community.

ADJOURNMENT:

Any records relating to an agenda item, received by a majority or more of the Council less than 72 hours before the meeting, shall be available for inspection online and at City Hall, 1400 Fifth Avenue, and placed with other agendarelated materials on the table in front of the Council Chamber prior to the meeting. Sign Language interpreters may be requested by calling (415) 485-3066 (voice), emailing [email protected] or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. To request Spanish language interpretation, please submit an online form at https://www.cityofsanrafael.org/request-for-interpretation/.

Minutes subject to approval at the November 17th City Council Meeting

MINUTES

SAN RAFAEL CITY COUNCIL SPECIAL MEETING
THURSDAY, NOVEMBER 6, 2025 AT 5:00 P.M. – 7:00 P.M.

In-Person:

Osher Marin Jewish Community Center
Hoytt Theater
200 N San Pedro Road
San Rafael, CA 94903

Present: Vice Mayor Bushey
Councilmember Hill
Councilmember Kertz
Mayor Kate

Absent: Councilmember Llorens Gulati
Also Present: City Manager Cristine Alilovich
City Attorney Robert Epstein
City Clerk Lindsay Lara
City Attorney Robert Epstein called the meeting to order at 5:02 p.m. All members of the City Council were present except Councilmember Llorens Gulati.

City Attorney Robert Epstein made opening remarks.

SPECIAL MEETING
a. Listening Session and Informational Meeting Regarding the Potential Purchase of 350 Merrydale Road for Interim Shelter and Affordable Housing Projects The purpose of this meeting is to provide information and receive community input regarding the City’s potential purchase of 350 Merrydale Road for future interim shelter and affordable housing projects. Members of the public are invited to share their comments directly with the City Council. This meeting is intended as a listening session; no decisions will be made and no formal action will be taken.

In compliance with the Brown Act, City Councilmembers will not engage in dialogue or respond to questions during the meeting. However, staff will be available to provide factual information and respond to general questions about the project. Additionally, community members may submit comments by email to [email protected].

City Attorney Robert Epstein invited public comment.

Speakers: Jason Sarris, Gregory Andrew, Ken Dickinson, Sandra, Dhalma, Victoria Holdridge, Courtney Wang, Mark Allan, Mary, Frank Mason, Stewart Sheppards, Jennifer Kiss, Janet Shirley, Mike Ghilotti, Karen Strolia, Emily, Rachel, Name Withheld City Attorney closed the public comment period.

ADJOURNMENT:

City Attorney Robert Epstein adjourned the meeting at 6:58 p.m.

______________________________
LINDSAY LARA, City Clerk

APPROVED THIS _____DAY OF____________, 2025

_____________________________________
KATE COLIN, Mayor

Minutes subject to approval at the City Council meeting of November 17, 2025

MINUTES

SAN RAFAEL CITY COUNCIL SPECIAL MEETING

CITY COUNCIL RETREAT
WEDNESDAY, NOVEMBER 12, 2025 AT 8:00 A.M.

In-Person:

San Rafael Department of Public Works
111 Morphew St, 2nd Floor Conference Room, San Rafael, CA 94901 Webinar
Link: https://tinyurl.com/CCSM-11-12-2025
Listen by phone: (669) 444-9171
ID: 839-9355-4673#

Present: Vice Mayor Bushey
Councilmember Hill
Councilmember Llorens Gulati (arrived at 8:12 a.m.)
Councilmember Kertz
Mayor Kate

Absent: None
Also Present: City Manager Cristine Alilovich
City Attorney Rob Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 8:06 a.m. and invited public comment.

Speakers: Gregory Andrew, Ken Dickinson, Amy Likover
City Manager Cristine Alilovich introduced Cathy Caprioli who facilitated the conversation. a. Approve the City Council Governance, Agreements and Roles & Responsibilities Document
City Manager Cristine Alilovich presented the Agenda Item.

Mayor Kate called a recess at 9:58 a.m., and called the meeting back to order at 10:11 a.m.

Mayor Kate invited public comment.

Speakers: Ken Dickinson, Amy Likover, Gregory Andrew
b. Discussion Regarding the Process for Handling Emerging Priorities that May Require Reprioritization and Revision of the City Council Fiscal Year 2025-2028, and/or Each Associated Annual Workplan
City Manager Cristine Alilovich presented the Agenda Item.

Mayor Kate invited public comment.

Speakers: Ken Dickinson, Gregory Andrew
c. Discussion Regarding City Council Committee Appointments for 2026 City Manager Cristine Alilovich presented the Agenda Item.

Mayor Kate invited public comment.

Vice Mayor Bushey moved, and Councilmember Hill seconded, to appoint Mayor Kate and Councilmember Hill to the new Community, Economic & Housing Subcommittee.

Speakers: Ken Dickinson, Gregory Andrew
AYES: Councilmembers: Bushey, Hill & Mayor Kate
NOES: Councilmembers: Kertz and Llorens Gulati
ABSENT: Councilmembers: None
ADJOURNMENT:

Mayor Kate adjourned the meeting at 11:34 a.m.
__________________________
LINDSAY LARA, City Clerk

APPROVED THIS _____DAY OF____________, 2025

_____________________________________
KATE COLIN, Mayor
ORDINANCE NO. 2055

AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL AMENDING CHAPTER 9.04 OF THE SAN RAFAEL MUNICIPAL CODE, THE CITY’S CLEAN

INDOOR AND OUTDOOR AIR AND HEALTH PROTECTION, TO PROHIBIT

ALL SMOKING IN DUPLEXES AND MULTI-FAMILY RESIDENCES AND TO

ALLOW SMALL CLAIMS COURTS TO GRANT INJUNCTIVE RELIEF
WHEREAS, section 118910 of the California Health and Safety Code and Section 26200 of the California Business and Professions Code local governments have the authority to regulate smoking in any manner not inconsistent with state law; and
WHEREAS, the purpose of the City’s smoking restrictions is to protect the public health, safety, and welfare from the known dangers to health posed by smoking and secondhand smoke; and
WHEREAS, materials from the California Department of Health have recommended that Electronic Smoking Devices be regulated in the same manner as traditional tobacco products;
WHEREAS, enforcement challenges of provisions of section 9.04.120 persist, and community members continue to report impacts from secondhand smoke that negatively impact their health and quality of life; and WHEREAS, the amendments set forth herein are necessary to further regulate smoking so as to more fully protect City residents, businesses, and visitors against unwanted secondhand smoke in public places, parks, and multiunit dwellings; WHEREAS, this Ordinance was introduced and read by title only at a meeting of the San Rafael City Council on the 3rd day of November 2025 and adopted at its November 17, 2025, meeting.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. AMENDMENT OF MUNICIPAL CODE
Sections 9.04.070 and 9.04.120 of Chapter 9.04 (Clean Indoor and Outdoor Air and Health Protection) of the San Rafael Municipal Code are hereby amended to read as follows, with additions shown in underline, and deletions shown in strikethrough:

9.04.070 - Smoking restrictions in new and existing units in duplexes and multifamily residences.

A. All new units of a duplex or multi-family residence are hereby designated nonsmoking units, including any associated exclusive-use enclosed areas or unenclosed areas, such as, for example, a private balcony, porch, deck, or patio.

B. All units of a duplex or multi-family residence that are not new units, including any associated exclusive-use enclosed areas or unenclosed areas, such as, for example, a private balcony, porch, deck, or patio, are hereby designated nonsmoking units as of November 14, 2013.

C. Smoking in a designated nonsmoking unit is a violation of this chapter.

D. Notwithstanding any other provision of this chapter, the use of electronic smoking devices within any unit of a duplex or multi-family residence is not prohibited by this chapter.

9.04.120 - Enforcement and penalties.

A. Any violation of this chapter shall be, and the same is hereby declared to be, unlawful and a public nuisance, and shall be enforceable pursuant to Chapters

1.40, 1.42, 1.44, or 1.46 of this Code, or by any other judicial and administrative penalties and remedies available to the city under state law. Each instance of smoking in violation of this chapter shall constitute a separate violation. For violations other than for smoking, each day of a continuing violation of this chapter shall constitute a separate violation. The remedies provided by this chapter are not intended to preclude any other remedy available at law or in equity.

B. Any Person acting for the interests of itself, its members, or the general public (hereinafter "Private Enforcer") may bring a private action, including for declaratory or equitable relief, in any court of competent jurisdiction, including small claims court, to enforce this section against any Person who has violated this section. The Private Enforcer must produce documentation substantiating the violation of the City's Smoking Ordinance, which could include resident complaints, inspection reports, and/or enforcement actions by local public health or code enforcement officers. A court shall grant all appropriate relief, including: (1) awarding damages; and (2) issuing an injunction or a conditional judgment. Under section 116.220(a)(5) of the California Code of Civil Procedure, small claims courts are expressly authorized to award an injunction or a conditional judgment for actions brought under this section. Except as otherwise provided, enforcement of this section is at the sole discretion of the City. Nothing in this section shall create a right of action in any Person against the City or its agents to compel public enforcement of this section against private parties.

DIVISION 2. Severability
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion of this Ordinance. The City Council of the City of San Rafael hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases shall be declared invalid.

DIVISION 3. CEQA Determination.

The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA), pursuant to 14 CCR Section 15061(b)(3), since it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.

DIVISION 4. Publication; Effective Date.

This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California.

Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk, a certified copy of the full text of this Ordinance along with the names of those Councilmembers voting for and against the Ordinance.

THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 3rd day of November 2025, and was passed and adopted at a regular meeting of the San Rafael City Council on the 17th day of November 2025 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________
Kate Colin, Mayor
Attest:
_____________________________
LINDSAY LARA, City Clerk
SUMMARY OF ORDINANCE 2055

AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL AMENDING CHAPTER

9.04 OF THE SAN RAFAEL MUNICIPAL CODE, THE CITY’S CLEAN INDOOR AND

OUTDOOR AIR AND HEALTH PROTECTION, TO PROHIBIT ALL SMOKING IN

DUPLEXES AND MULTI-FAMILY RESIDENCES AND TO ALLOW SMALL CLAIMS COURTS TO GRANT INJUNCTIVE RELIEF; CEQA DETERMINATION: EXEMPT PURSUANT TO CEQA GUIDELINE 15061(b)(3)
This Summary concerns a proposed Ordinance of the City Council of the City of San Rafael, designated as Ordinance No. 2055, which will amend Chapter 9.04 of the San Rafael Municipal Code. Ordinance No. 2055 is scheduled for adoption by the San Rafael City Council at its regular meeting of November 17, 2025. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section 36933(c)(1).

SUMMARY OF AMENDMENT TO MUNICIPAL CODE
This Ordinance would amend the Chapter 9.04 of the San Rafael Municipal Code, the City’s Clean Indoor and Outdoor Air and Health Protection, by prohibiting all smoking in duplexes and multifamily residences and by granting small claims courts authority to grant injunctive relief. Specifically, Sections 9.04.070 and 9.04.120 would be amended to accomplish the foregoing.

For a complete copy of the text of the Ordinance amending the Municipal Code, please contact the City Clerk at (415) 485-3066. Copies of the Ordinance containing this Municipal Code amendment are also available for public review at the San Rafael City Clerk’s office, 1400 Fifth Avenue, 2nd Floor, Room 209, during regular business hours, 9:00 a.m. to 4:00 p.m. /s/______________________
LINDSAY LARA, City Clerk
San Rafael City Clerk
Dated: November 7, 2025
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.c
Meeting Date: November 17, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Ariel Gutierrez
Senior Management Analyst II
City Manager Approval: ______________
TOPIC: AGREEMENTS FOR ON-CALL ENVIRONMENTAL CONSULTING SERVICES SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE PROFESSIONAL

SERVICES AGREEMENTS FOR ON-CALL ENVIRONMENTAL CONSULTING SERVICES WITH RINCON CONSULTANTS, INC. AND AECOM IN AN AMOUNT NOT TO EXCEED $500,000 FOR EACH AGREEMENT AND SICULAR ENVIRONMENTAL CONSULTING IN AN AMOUNT NOT TO EXCEED $200,000; AND AUTHORIZING THE

FINANCE DIRECTOR TO PROCESS SUPPLEMENTAL BUDGET APPROPRIATIONS WITHIN THE DEVELOPMENT SERVICES FUND (207) ON A CONTINUAL BASIS, NOT

TO EXCEED AVAILABLE FUNDS
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to enter into professional services agreements for on-call environmental consulting services with Rincon Consultants, Inc and AECOM in an amount not to exceed $500,000 for each agreement, and Sicular Environmental Services in an amount not to exceed $200,000, and authorizing the Finance Director to process supplemental budget appropriations within the Development Services Fund (207) on a continual basis, not to exceed available funds.

BACKGROUND:

The City of San Rafael’s Community and Economic Development (CED) Department has experienced a surge in development applications over the past few years, following the passage of new state housing laws. To process these applications, CED must analyze each project for its compliance with the law as soon as possible. In 2024 and 2025, the CED Department executed one-off contracts with environmental consultants to provide the analyses and reports required for incoming development applications. The cost of professional services and the City’s processing time are reimbursed by applicants, as stipulated in the applicants’ reimbursement agreements.

The CED Department anticipates approximately four development projects requiring environmental review in the upcoming fiscal quarter and up to eight similar projects in the following calendar year that will require environmental review at some level. The expediency of processing these applications is critical to compliance with state law. Further, this specialized work requires expertise that department staff do not possess, requiring the use of outside consultants. The authorization of a bench of on-call SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
environmental consultants will allow the department to process applications in a timely manner while staff ensure day-to-day operations run smoothly.

CED’s financial system for processing development applications requires applicants to execute reimbursement agreements, ensuring full cost recovery for all development work, including environmental services. Under this approach, CED manages project financials in a separate account, ensuring that general funds are not used to finance environmental consulting requirements of distinct projects.

ANALYSIS:

All three consultants possess demonstrated qualifications to move environmental requirements through the City’s entitlement phase. Establishing a bench of environmental consultants will allow staff to manage project applications efficiently, provide thorough project analysis, and further support the City’s housing progress goals. Once projects are entitled, applicants can proceed with construction and completing their projects, including new housing and commercial developments. Accordingly, the additional consultant support will further the following goals from the City Council’s Three-Year Strategic Plan for Fiscal Year 2025-2028 (https://www.cityofsanrafael.org/fy2025-2028-strategic-plan/):
• Goal A1: Strengthen the local economy by supporting existing businesses and attracting new enterprises.
• Goal D.2: Advance the development of new housing across all affordability levels to meet the state’s Regional Housing Needs Allocation (RHNA) requirements as outlined in the City’s Housing Element, ensuring diverse, sustainable, and equitable housing opportunities for all residents.

Staff recommends that the City Council authorize the City Manager to enter into a new professional services agreement for on-call environmental consulting services with Rincon Consultants, Inc., and AECOM for on-call environmental consulting services in an amount not to exceed $500,000 for each agreement, and Sicular Environmental Services in an amount not to exceed $200,000. This will cover immediate and long-term environmental service needs and allow staff to request assistance from the firm on a project-by-project basis. The CED Director will review and approve each project, scope of work, and cost estimates. The CED Department will ensure that project applicants fund any costs incurred by the City in processing their applications.

FISCAL IMPACT:

The staff recommendation presented in this staff report would authorize professional services contracts totaling $1,200,000, all of which will be funded by project applicants through reimbursement agreements.

The entire budget adjustment will be allocated to the 207 Development Services Fund and encumbered by each distinct project as needed. Through the City’s developer deposit process, applicants will fully reimburse the cost of the consultants’ work and submit a contract administration fee ensuring full recovery of City costs. Council action is requested as part of the staff recommendation to authorize the Finance Director to process supplemental budget adjustments within the Development Services Fund (207) on a continual basis, not to exceed available funds.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Authorize the City Manager to enter into the professional service agreements.

2. Authorize the City Manager to enter into the agreements with modifications.

3. Direct staff to return with more information.

4. Take no action.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution

2. Professional Services Agreement with Rincon Consultants, Inc

3. Professional Services Agreement with AECOM

4. Professional Services Agreement with Sicular Environmental Services

Page 1 of 2 ends

RESOLUTION NO.

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE PROFESSIONAL

SERVICES AGREEMENTS FOR ON CALL ENVIRONMENTAL CONSULTING SERVICES WITH RINCON CONSULTANTS, INC. AND AECOM IN AN AMOUNT NOT TO EXCEED $500,000 FOR EACH AGREEMENT AND SICULAR ENVIRONMENTAL CONSULTING IN AN AMOUNT NOT TO EXCEED $200,000; AND AUTHORIZING THE FINANCE DIRECTOR TO

PROCESS SUPPLEMENTAL BUDGET APPROPRIATIONS WITHIN THE DEVELOPMENT SERVICES FUND (207) ON A CONTINUAL BASIS, NOT TO EXCEED AVAILABLE FUNDS WHEREAS, the City of San Rafael’s Community and Economic Development (CED) Department is processing a significant level of development-related applications, which require analyzing projects for compliance with planning and environmental laws; and

WHEREAS, the City of San Rafael has a need for on-call consultants to provide professional services to the City, its Planning Commission, City Council and staff in the environmental review process for the incoming development applications, in accordance with the California Environmental Quality Act (CEQA); and
WHEREAS, San Rafael Municipal Code Section 2.55.100.D exempts professional services from competitive bidding requirements; and
WHEREAS, the selected consultants are qualified and available to provide environmental consulting services for developer-deposit projects that require environmental analysis; and WHEREAS, project applicants are responsible for reimbursing the City for the costs incurred by the City in processing their development applications; and WHEREAS, the CED Department will fund the costs of professional services agreements with all three consultants through reimbursement agreements with project applicants.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael finds the foregoing recitals are true and correct, and authorizes the City Manager or their designee to execute a professional services agreement with Rincon Consultants, Inc, for an amount not to exceed $500,000 for a three-year time period; and
FURTHER RESOLVED, that the City Council of the City of San Rafael authorizes the City Manager or their designee to execute a professional services agreement with AECOM for an amount not to exceed $500,000 for a three-year time period; and FURTHER RESOLVED, that the City Council of the City of San Rafael authorizes the City Manager or their designee to execute a professional services agreement with Sicular Environmental Services, for an amount not to exceed $200,000 for a three-year time period; and FURTHER RESOLVED, that the City Council authorizes Finance Director to appropriate funds on a continual basis, as deposits are received from project applicants, with budget appropriations within the Development Services Fund (207) to not exceed available funds.

Page 2 of 2 ends

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a special meeting of the City Council of said City held on Monday, the 17th day of November 2025, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_______________________
LINDSAY LARA, City Clerk

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.d
Meeting Date: November 17, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Library and Recreation
Prepared by: Craig Veramay and Daniel Avalos,
Assistant Library & Recreation Directors
City Manager Approval: ______________
TOPIC: INSTALLATION OF A MURAL IN THE PICKLEWEED LIBRARY’S NEW CHILDREN’S ROOM AT 50 CANAL STREET
SUBJECT: RESOLUTION APPROVING AN ART INSTALLATION PROPOSED BY YOUTH IN ARTS FOR AN ARTISTIC YOUTH MURAL TITLED ‘OUR COMMUNITY, OUR STORY’ IN THE NEW CHILDREN’S ROOM AT THE PICKLEWEED LIBRARY, LOCATED AT 50

CANAL STREET
RECOMMENDATION:

Staff recommend that the City Council approve the artistic youth mural titled ‘Our Community, Our Story’ for installation at the Pickleweed Library Children’s Room and authorize the City Manager to enter into an Art License Agreement with Youth In Arts.

BACKGROUND:

The City of San Rafael welcomes proposals for the creation and display of public artworks and exhibitions on property that is owned, occupied, or managed by the City. In 2022, the San Rafael City Council approved the formation of the Public Art Review Board (Board). The Board’s responsibilities include providing recommendations to the City Council regarding long-term (lasting more than one year) public art installations and approving applications for temporary (lasting one year or less) public art exhibitions.

The Public Art Review Board is responsible for reviewing proposals in alignment with the City’s Public Art Review Guidelines, which were established as part of the Public Art Review Process.

The Public Art Review Board guidelines include:
• Project Readiness
• Qualifications
• Funding
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
• Community Engagement
• Maintenance
• Design
• Diversity
If the Public Art Review Board recommends approval of a proposal, it is presented to the City Council for consideration and final approval.

ANALYSIS:

In January 2025, the City issued a call for applications for organizations to design a mural for the Pickleweed Library Children’s Room (Attachment 1). This mural is intended to be installed as part of the interior renovation of the Pickleweed Branch Library, which is estimated to be complete in Spring/Summer 2026.

After reviewing applications, the City entered into an agreement with Youth in Arts (YIA) based on their applications’ alignment with required criteria, and YIA began collaborating with youth from the Canal neighborhood to design a mural for the project through their ‘I AM’ program.

For nearly 54 years, Youth in Arts has provided high-quality arts education to students of all backgrounds and abilities. YIA’s mission is to foster creativity and confidence among youth (14-19) in Marin, particularly through their I AM program, which supports emerging artists by providing opportunities to work alongside professional artists and engage in community-based public art projects.

The mural was designed by YIA Teaching Artist Ali Vaughan with five teen artists, including four San Rafael High students and former I AM participants. Several have deep ties to the Canal neighborhood, and their experiences shaped a design that truly reflects the community, having grown up visiting the center and the park. The design process reflected their lived experiences and their deep connection to the community, ensuring that the mural would resonate with both local residents and visitors.

The mural, titled "Our Community, Our Story” (Attachment 2), has been designed and will be printed on vinyl and installed in the library once renovations are complete. The final artwork is a collage that integrates acrylic paint, watercolor, colored pencil, and pen. Each of the artists who worked on the piece contributed individual statement pieces, such as the birds, people, and play structure, which were then pasted onto the mural to create a unified design. This process allowed each teen artist to express their unique perspective while contributing to a shared community narrative.

The Public Art Review Board evaluated the artwork based on the established guidelines, detailed below, and recommended it for approval by the City Council at their meeting on October 15, 2025.

Project Readiness and Timeline: If approved by City Council, the mural will be reproduced on vinyl and installed in the Children’s Room at the Pickleweed Library (Attachment 3) following the completion of the library’s renovation, expected in the spring or summer of 2026.

Maintenance: No maintenance needs or expenses are anticipated during the installation period.

Design: The final mural design was crafted to reflect the culture, values, and lived experiences of the Pickleweed community. It incorporates culturally significant symbols, themes of learning and growth, and locally recognizable features to foster a sense of belonging and connection for visitors. Elements such as California poppies, native birds, and illustrations of nearby landmarks, SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
including Pickleweed Park and the Boro Community Center, ground the mural in its physical and cultural context.

Imaginative and symbolic motifs are also woven throughout the design. A quetzal, a bird native to Central America, is included to honor the area's significant Guatemalan population. The mural unfolds from a large storybook, symbolizing the role of storytelling and education in shaping vibrant, resilient communities. The narrative flows from left to right, illustrating children in various stages of development, ultimately culminating in the image of a high school graduate walking confidently toward a bright future, represented by the rising sun.

Diversity: The mural "Our Community, Our Story" aligns with the City’s public art review board diversity guidelines by highlighting the unique, multifaceted identities of community members who engage with the Pickleweed Library. Through extensive community engagement, the mural’s design reflects cultural symbols and local traditions, ensuring that diverse voices are represented.

By incorporating elements that acknowledge the area’s culture, as well as local landmarks, flora, and fauna, the artwork fosters a sense of belonging and celebrates the community’s cultural richness. This inclusive approach not only honors diversity but also reinforces the value of education and imagination in shaping a brighter future for all.

COMMUNITY ENGAGEMENT
The mural was developed through an extensive and thoughtful community engagement process. The YIA team conducted interviewed library staff, local designers, and community members to gain a deeper understanding Library’s role in the lives of its users. Conversations with librarians focused on how the space has historically been used and how it is expected to function following the upcoming renovation.

To further inform the project, the YIA team spent time at the nearby Pickleweed Park, engaging directly with families and children who frequently visit the library. These interactions provided insight into the community’s values, aspirations, and cultural identity. In addition, the team studied nearby public art installations, including murals at Bahia Vista Elementary School and on the exterior of the Pickleweed Community Center. These references helped inspire the mural’s direction and ensure it aligned with the visual language of the surrounding area.

After completing the mural design, YIA attended the Pickleweed Advisory Committee meeting on October 1, 2025, and the Public Art Review Board meeting on October 15, 2025, to share their proposal and receive comments and feedback from the community.

October 1, 2025, the Pickleweed Advisory Committee meeting was attended by more than 40 community members, and this proposal was well received by the community and most committee members.

Similarly, the proposal was well received by the Public Art Review Board. Both groups approved moving the proposal forward and approving the installation of the mural.

FISCAL IMPACT:

The total cost for the design, development, production, and installation of the mural is $13,300. Funding for this is available in the Library and Recreation Department’s FY 2025-26 Measure D (Fund 215) budget.

OPTIONS:

The City Council has the following options to consider on this matter:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4

1. Approve the installation of the mural.

2. Request modifications or changes to the proposal

3. Do not approve the installation of the mural.

RECOMMENDED ACTION:

Staff recommends that the City Council approve the artistic youth mural titled ‘Our Community, Our Story’ for installation at the Pickleweed Library Children’s Room.

ATTACHMENTS:

1. Resolution

2. Call for Proposals

3. YIA Mural Design: ‘Our Community, Our Story’

4. Pickleweed Library Children’s Room Rendering – Mural Location RESOLUTION NO.

RESOLUTION APPROVING AN ART INSTALLATION BY YOUTH IN ARTS FOR AN ARTISTIC YOUTH MURAL TITLED ‘OUR COMMUNITY, OUR STORY’ IN THE NEW CHILDREN’S ROOM AT THE PICKLEWEED LIBRARY, LOCATED AT 50 CANAL STREET WHEREAS, the City is creating a new Children’s room through an interior renovation of the Pickleweed Branch Library, which is expected to be completed in Spring/Summer 2026; and WHEREAS, the City desires to install a mural in the new Pickleweed Children’s room that celebrates and reflects the community; and
WHEREAS, the City issued a call for applications for a mural to be installed in the Children’s Room of the Pickleweed Library as part of the library’s interior renovation project; and WHEREAS, the City selected Youth in Arts (“YIA”) based on their qualifications, project readiness, community engagement approach, and alignment with the City’s Public Art Review Guidelines; and
WHEREAS, YIA collaborated with youth artists through its ‘I AM’ program and developed a mural titled “Our Community, Our Story,” incorporating culturally significant symbols, local landmarks, and artistic contributions from teen artists with strong connections to the Canal neighborhood; and
WHEREAS, the Pickleweed Advisory Committee and the Public Art Review Board reviewed and recommended approval of the mural installation.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES that the mural titled “Our Community, Our Story,” created by Youth in Arts, is hereby approved for installation in the new Children’s Room at the Pickleweed Library, located at 50 Canal Street.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City on Monday, the 17th day of November 2025, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
____________________
Lindsay Lara, City Clerk
Attachment 2: Call for Applications
Call for Applications
Pickleweed Branch Library
Children’s Room Mural
Application Due Date:

February 28, 2025 at 5:00pm
Overview
The City of San Rafael is seeking applications from qualified organizations to develop youth-led artwork for a mural in the Pickleweed Branch Library Children’s Room. Pickleweed Library is located in the Canal neighborhood, a vibrant and diverse area that has traditionally been marked by socio-economic disparities compared to the rest of San Rafael. Pickleweed Library is 2,000 square feet, co-located with the Albert J. Boro Community Center and within Pickleweed Community Park, and serves a local community of over 12,000 residents. The facility is heavily utilized and is an important resource for a predominantly Spanish-speaking community.

Project Description
Pickleweed Library is scheduled for renovation starting Summer 2025 through Spring 2026. The renovation will include a complete interior re-design of the space to better meet community needs, improve the patron experience, and maximize space. An important component of the project is creating a dedicated children’s room, that includes space for a community mural.

The mural will be on a curved wall that is approximately 5’8½” high and 10’ 9½” wide. The artwork will be installed on printed vinyl so that it could easily be updated and refreshed over time. The exact specifications of the installation will be determined in collaboration with the successful applicant.

The goal of the mural is to engage and represent the local community and its youth. The City is seeking an organization to lead a collaborative process with Canal resident youth to create the proposed artwork.

While the applicant will be responsible for proposing a process to develop the artwork, the City will prioritize applications that engage greater numbers of Canal resident youth, provide for a range of participation opportunities, and a propose a final product developed by youth artists.

Project Budget
The City has identified a maximum of $10,000 in total project funding, inclusive of the fabrication and installation of the mural.

Project Timeline
- January 17, 2025: Call for Applications released
- February 12, 2025 at 1:00 pm: Pre-application question and answer session (join using this Teams link)
- February 28, 2025 by 5:00 pm: Applications due
- March 17, 2025: Selected organization announced
- August 29, 2025: Proposed artwork due to the City
- October 2025: Proposed artwork presented to the Public Art Review Board - November 2025: Proposed artwork considered by City Council - March 2026: Artwork installed
Application Process
All interested organizations should complete the application form (Attachment 1) and submit it to [email protected] by February 28, 2025, at 5:00 pm. The applications will be reviewed by Library and Recreation staff and scored based on the following criteria:
- Complete and accurate application form (10 points)
- Organization qualifications and experience with similar youth-led projects (30 points) - Proposed process and level of engagement with Canal resident youth (45 points) - Proposed project budget (15 points)
The City will hold a virtual session to respond to any applicant questions on Wednesday, February 12 at 1:00 pm. To participate, please use this Teams link: Join the meeting now Attachment 3: Youth In Arts Mural Design – ‘Our Community, Our Story’ Attachment 4: Children’s Room Rendering – Mural Location ____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.e
Meeting Date: November 17, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio, Finance Director City Manager Approval: _________ TOPIC: CITY QUARTERLY INVESTMENT REPORT
SUBJECT: ACCEPTANCE OF CITY OF SAN RAFAEL QUARTERLY INVESTMENT REPORT FOR THE QUARTER ENDING SEPTEMBER 30, 2025
RECOMMENDATION:

Accept the investment report for the quarter ending September 30, 2025, as presented.

BACKGROUND:

Under the State of California Government Code Section 53601 and the City’s investment policy, last approved by the City Council on June 17, 2024, staff provides the City Council with a quarterly report on the City's investment activities and liquidity. The report includes the cost of each investment, the interest rates (yield), maturity dates, and market value.

The City invests some of its pooled funds in the Local Agency Investment Fund (LAIF), a State-run investment pool. Beginning in March 2014, the City incorporated an investment strategy that added purchases of securities outside of LAIF with the assistance of an investment advisor. The City’s current investment advisor is Chandler Asset Management.

ANALYSIS:

As of September 30, 2025, the City’s Treasury consisted of investments with a total market value of $101,543,865 consisting of $50,285,053 in the City’s primary Local Agency Investment Fund (LAIF) account, $893,500 of Pt. San Pedro Assessment District bonds, and $49,782,054 in externally managed investments. An additional $9,761,084 represents cash balances in the City’s various operating bank accounts, including Westamerica Bank ($6,364,389), Bank of the Marin ($547,146), and Bank of Montreal ($1,009,080).

As of September 30, 2025, the weighted-average yield on the portfolio was 4.30% which results from an effective yield of 4.20% for the City’s investments in the Local Agency Investment Fund and a yield of

4.52% for the externally managed investments. The overall return on the total portfolio for the quarter SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ending September 30, 2025, was 3.87%, with a weighted average maturity of 1.07 years, and compares favorably to the benchmark (1-3 Year Treasury Index) of 3.65%. This favorable variance is due to the improved interest rate environment over the past year, as new higher-yield investments are being made, replacing lower-yield investments, primarily upon maturity.

The City’s investment portfolio maintains strong diversification and is experiencing growth in interest income due to higher market rates. All investments comply with the City’s investment policy and California Government Code.

Economic Outlook:

The Federal Reserve lowered the Federal Funds Rate a quarter percentage point to the range of 4.00 –

4.25% upon conclusion of the September Federal Open Market Committee meeting. The move was telegraphed by the Fed and in line with market expectations. Stephen Miran was the only opposing vote in the 11-1 decision as Governor Miran called for a larger 50 basis point rate cut. Chair Powell said concerns over signs of a softening labor market prompted the policy shift. Policymakers also updated their economic forecasts penciling in two additional quarter-point cuts through year-end. (Note: since the end of the period covered in this report, the Federal Reserve has voted to enact an additional quarter percentage reduction in the Federal Funds Rate).

The City will continue to watch market trends and refine its investment strategy, as appropriate, to improve the investment portfolio’s performance while ensuring its primary goals of preservation of principal, liquidity, and yield.

The attachments include:

1. Quarterly Investment Portfolio Report

2. Historical Activity by Quarter summarizing the City’s investments

3. The City’s Investment Report from Chandler Asset Management for the period ending September 30, 2025, which includes a listing of all holdings and transaction activity details for the reporting period
FISCAL IMPACT:

No financial impact occurs by adopting the report. The City continues to meet the priority investment principles - safety, liquidity, yield, and diversification. The portfolio is still conservatively invested, and sufficient liquidity exists to meet daily operating and capital project requirements for the next six months.

As defined for this report, operating funds exclude cash held with fiscal agents to pay bond principal and interest.

RECOMMENDED ACTION:

Accept the investment report for the quarter ending September 30, 2025, as presented. Microsoft Teams
ATTACHMENTS:

Attachments:

1. Attachment 1: Quarterly Investment Portfolio Report

2. Attachment 2: Historical Activity by Quarter Report

3. Attachment 3: Chandler Asset Management – Investment Report: Period Ending September 30, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH THE CITY’S APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE CITY HAS

SUFFICIENT LIQUIDITY TO MEET ALL OF THE OBLIGATIONS REQUIRED DURING THE NEXT SIX-MONTH PERIOD.

Paul Navazio
Finance Director
% Yield
LAIF $ 50,285,053 97.1% 4.20%
Cash (Receivable) $ 583,258 1.1% 0.00%
Pt. San Pedro Assessment District $ 893,500 1.8% 5.25%
Total Internally Managed $ 51,761,811 51.0%
Weighted Average Yield 4.17%
Days
Effective Average Duration - Internal 1
Weighted Average Maturity - Internal 1
% Yield
Money Market Fund $ 1,561,238 3.1% 3.70%
Treasury Securities $ 18,655,217 37.5% 4.12%
Instrumentality Securities $ 5,875,806 11.8% 4.30%
Corporate Notes $ 13,039,590 26.2% 4.89%
Asset-Backed $ 4,033,767 8.1% 4.85%
Cash (Receivable) $ 0.0% 0.00% 3,404
CMO $ 5,348,735 10.7% 4.44%
Supranational $ 1,264,297 2.5% 4.34%
Total Externally Managed $ 49,782,054 49.0%
Weighted Average Yield 4.52%
Years
Effective Average Duration - External 1.83
Weighted Average Maturity - External 2.16
Total Portfolio Assets % Yield
LAIF $ 50,285,053 49.5% 4.20%
Money Market Fund $ 1,561,238 1.5% 3.70%
Treasury Securities $ 18,655,217 18.4% 4.12%
Instrumentality Securities $ 5,875,806 5.8% 4.30%
Corporate Notes $ 13,039,590 12.8% 4.89%
Asset-Backed $ 4,033,767 4.0% 4.85%
Cash (Receivable) $ 586,663 0.6% 0.00%
Commercial Paper 0.0% 0.00%
CMO $ 5,348,735 5.3% 4.44%
Supranational $ 1,264,297 1.2% 4.34%
Pt. San Pedro Assessment District $ 893,500 0.9% 5.25%
Total Portfolio Assets $ 101,543,865 100.0%
Weighted Average Yield 4.30%
Years
Effective Average Duration - Total 0.90
Weighted Average Maturity - Total 1.07
Based on Market Values
September 30, 2025
City of San Rafael
Quarterly Investment Portfolio Report
Externally Managed Assets
Internally Managed Assets
LAIF

97.1%
Cash
(Receivable)

1.1%
Pt. San Pedro
Assessment
District

1.8%
Money Market
Fund

3.1%
Treasury
Securities

37.5%
Instrumentality
Securities

11.8%
Corporate Notes

26.2%
Asset-Backed

8.1%
Cash
(Receivable)

0.0%
CMO

10.7% Supranational

2.5%
LAIF

49.5%
Money Market
Fund

1.5%
Treasury
Securities

18.4%
Instrumentality
Securities

5.8%
Corporate Notes

12.8%
Asset-Backed

4.0%
Cash
(Receivable)

0.6%
CMO

5.3%
Supranational

1.2%
Pt. San Pedro
Assessment
District

0.9%
Internally Managed Assets % Return % Return % Return % Return LAIF $ 50,285,053 97.1% 4.20% $ 65,580,543 97.7% 4.27% $ 60,863,383 98.8% 4.31% $ 67,213,508 99.1% 4.57% Cash (Receivable) $ 583,258 1.1% 0.00% $ 679,852 1.0% 0.00% $ 709,073 1.2% 0.00% $ 609,268 0.9% 0.00% Municipal/Assessment District $ 893,500 1.8% 5.25% $ 893,500 1.8% 5.25% Total Internally Managed $ 51,761,811 51.0% $ 67,153,895 57.8% $ 61,572,456 55.5% $ 67,822,776 58.3% Weighted Average Yield 4.17% 4.27% 4.26% 4.53%
Externally Managed Assets % Return % Return % Return % Return Cash $ 3,404 0% 0% $ 938 0% 0% $ 4,688 0% 0% $ 2,131 0.0% 0.00% Commercial Paper $ - 0% 0% $ - 0% 0% $ - 0% 0% $ 748,555 1.5% 5.43% Money Market Fund $ 1,561,238 3.1% 3.70% $ 301,402 0.6% 3.94% $ 832,503 1.7% $ 219,455 0.5% 4.49% Treasury Securities $ 18,655,217 37.5% 4.12% $ 18,019,829 36.7% 4.20% $ 16,320,849 33.0% $ 15,615,384 32.1% 3.80% Instrumentality Securities $ 5,875,806 11.8% 4.30% $ 7,170,602 14.6% 4.30% $ 7,943,011 16.1% $ 9,016,594 18.6% 4.42% Corporate Notes $ 13,039,590 26.2% 4.89% $ 13,150,300 26.8% 4.92% $ 12,550,651 25.4% $ 11,848,951 24.4% 4.82% Asset Backed $ 4,033,767 8.1% 4.85% $ 4,381,789 8.9% 4.84% $ 4,833,808 9.8% $ 5,194,081 10.7% 4.84% Negotiable CD $ - 0.0% 0.00% $ - 0.0% 0.00% $ - 0.0% $ - 0.0% Collateralized Mortgage Obligations (CMO) $ 5,348,735 10.7% 4.40% $ 4,829,889 9.8% 4.51% $ 4,802,670 9.7% $ 4,125,160 8.5% 4.44% Supranational $ 1,264,297 2.5% 4.34% $ 1,261,602 2.6% 4.32% $ 1,250,601 2.5% $ 939,586 1.9% 4.53% Municipal/Assessment District $ 893,500 1.8% $ 893,500 1.8% 5.25% Total Externally Managed $ 49,782,054 49.0% $ 49,116,351 42.2% $ 49,432,281 44.5% $ 48,603,397 41.7% Weighted Average Yield 4.52% 4.59% 4.51% 4.31%
Years Years Years Years
Effective Average Duration - External 1.83 1.84 1.84 1.84 Weighted Average Maturity - External 2.16 2.19 2.22 2.22 Total Portfolio Assets % Return % Return % Return % Return LAIF $ 50,285,053 49.5% 4.20% $ 65,580,543 56.4% 4.27% $ 60,863,383 54.8% 4.31% $ 67,213,508 57.73% 4.57% Cash $ 586,663 0.6% 0.00% $ 680,790 0.6% 0% $ 713,761 0.6% 0.00% $ 611,399 0.53% 0.00% Commercial Paper $ - 0.0% 0% $ - 0.0% 0% $ - 0.0% 0% $ 748,555 0.64% 5.43% Money Market Fund $ 1,561,238 1.5% 3.70% $ 301,402 0.3% 3.94% $ 832,503 0.7% 3.95% $ 219,455 0.19% 4.49% Treasury Securities $ 18,655,217 18.4% 4.12% $ 18,019,829 15.5% 4.20% $ 16,320,849 14.7% 4.24% $ 15,615,384 13.41% 3.80% Instrumentality Securities $ 5,875,806 5.8% 4.30% $ 7,170,602 6.2% 4.30% $ 7,943,011 7.2% 4.34% $ 9,016,594 7.74% 4.42% Corporate Notes $ 13,039,590 12.8% 4.89% $ 13,150,300 11.3% 4.92% $ 12,550,651 11.3% 4.87% $ 11,848,951 10.18% 4.82% Asset Backed $ 4,033,767 4.0% 4.85% $ 4,381,789 3.8% 4.84% $ 4,833,808 4.4% 4.83% $ 5,194,081 4.46% 4.84% Collateralized Mortgage Obligations (CMO) $ 5,348,735 5.3% 4.44% $ 4,829,889 4.2% 4.51% $ 4,802,670 4.3% 4.44% $ 4,125,160 3.54% 4.44% Supranational $ 1,264,297 1.2% 4.34% $ 1,261,602 1.1% 4.32% $ 1,250,601 1.1% 4.31% $ 939,586 0.81% 4.53% Municipal/Assessment District $ 893,500 0.9% 5.25% $ 893,500 0.8% 5.25% $ 893,500 0.8% 5.25% $ 893,500 0.77% 5.25% Total Portfolio Assets $ 101,543,866 100% $ 116,270,246 100% $ 111,004,737 100% $ 116,426,173 100.00% Weighted Average Yield 4.30% 4.50% 4.37% 4.44%
Years Years Years Years
Effective Average Duration - Total 0.90 0.78 0.80 0.81
Weighted Average Maturity - Total 1.07 0.93 0.96 0.97
See Externally Managed Assests See Externally Managed Assests See Internally Managed Assets
City of San Rafael
Historical Activity-By Quarter
June 30, 2025 March 31, 2025 December 31, 2024
See Internally Managed Assets
September 30, 2025

INVESTMENT REPORT
City of San Rafael | As of September 30, 2025
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. , ,,a CHANDLER ~ ,-- ASSET MANAGEMENT

TABLE OF CONTENTS
City of San Rafael | As of September 30, 2025

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
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" '·· ASSET MANAGEMENT

ECONOMIC UPDATE
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


Recent economic data suggest slower growth in 2025 and greater market uncertainty as the effects of fiscal policy unfold. Inflation pressures have eased, though core levels remain above the Federal Reserve’s target, while tariffs continue to cloud forecasts. Signs of a softer labor market are emerging, prompting expectations that the Fed will move cautiously toward policy normalization. Given the economic outlook, we expect gradual normalization of monetary policy and a steeper yield curve.

The Federal Reserve lowered the Federal Funds Rate a quarter percentage point to the range of 4.00 – 4.25% upon conclusion of the September Federal Open Market Committee meeting. The move was telegraphed by the Fed and in line with market expectations. Stephen Miran was the only opposing vote in the 11-1 decision as Governor Miran called for a larger 50 basis point rate cut. Chair Powell said concerns over signs of a softening labor market prompted the policy shift. Policymakers also updated their economic forecasts penciling in two additional quarter-point cuts through year-end.

The US Treasury yield curve flattened in September, as the 2-year Treasury yield declined 13 basis points to 3.57%, the 5-year Treasury also down 13 basis points to 3.66%, and the 10-year Treasury yield declined 14 basis points to 4.12%. The spread between the 2-year and 10- year Treasury yield points on the curve decreased to +54 basis points at September month-end versus +61 basis points at August monthend. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was 14 basis points. The spread between the 3- month and 10-year Treasury yield points on the curve was +21 basis points in September versus +8 basis points in August.

ECONOMIC UPDATE
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-400
-200
0 200
400
600
800
1,000
MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added just 22,000 jobs in August, falling short of consensus expectations and punctuating the softening trend in the labor market. The three-month moving average and six-month moving average payrolls totaled 29,000 and 64,000 respectively. The unemployment rate rose to 4.3% in August from 4.2% in July. The labor participation rate inched up to 62.3%, remaining below the prepandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons jumped to 8.1% in August from 7.9% in July. Average hourly earnings fell to 3.7% year-over-year from 3.9% last month.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 ~
-
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" '·· ASSET MANAGEMENT
- -
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) showed a modest increase to 7.227 million new job openings in August from 7.2 million in July. The quits rate and layoffs remained relatively stable. Job openings indicate a ratio of approximately 1 job for each unemployed individual, representing a relatively balanced labor market.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 -
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0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YOY (%) Change
In August, the Consumer Price Index (CPI) increased more than expected at 0.4% month-over-month and 2.9% year-over-year, while the Core CPI rose 0.3% month-over-month and 3.1% year-over-year, in line with expectations. The Personal Consumption Expenditures (PCE) price index rose 0.3% month-over-month and 2.7% year-over-year in August. The Core PCE deflator, which excludes food and energy and is the Fed’s preferred gauge, was up 0.2% from July leaving it unchanged at 2.9% on an annual basis in August.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
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0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
Advance Retail Sales showed continued strength jumping 0.6% in August as July data was also revised up to 0.6% month-over-month. The increase elevated retail sales to 5.0% on an annual basis after jumping 4.1% year-over-year in July. Back-to-school shopping was a likely catalyst as online shopping, clothing, and sporting goods saw some of the largest increases. Control group sales, which feed into GDP, also jumped 0.74% in August from the prior month. The Conference Board’s Consumer Confidence Index fell to 94.2 in September from a revised 97.8 in August, marking the lowest level since April 2025. Measures of current conditions and future expectations fell, signaling weaker sentiment toward employment and income. Consumers have remained resilient, but rising debt burdens, higher delinquency rates, lingering inflation worries, and emerging signs of labor market cooling could weigh on future spending. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
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-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) fell by 0.5% in August, following a 0.1% increase in July. The LEI decreased by 3.6% year-over-year. The Conference Board is expecting economic growth to slow in the second half of 2025 due to consumer pessimism, soft manufacturing new orders, and negative impacts from tariffs. The Chicago Fed National Activity Index (CFNAI) came in at -0.12% in August after a downwardly revised -0.28 in July, indicating that economic momentum remained below its historical trend for the fifth consecutive month. The three-month moving average shows a similar trend at -0.18 in August from -0.20 in the prior month signaling ongoing below-trend growth in national economic activity.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
8 ■
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0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts dropped 8.5% in August to 1.307 million units, marking a pullback amid elevated inventory levels and a softening labor market. Single-family starts fell 7.0% in August to 890,000 units, hitting their lowest level since July 2024. The S&P Cotality Case Shiller 20- City Home Price Index recorded a 0.07% month-over-month decline in July, marking the fifth consecutive month of losses, while still posting a modest year-over-year gain of 1.8%. Persistently high asking prices and elevated mortgage rates have continued to challenge affordability, contributing to the recent cooling across the housing market. However, the Freddie Mac 30-year fixed mortgage rate continued recent declines to 6.3% as of September.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
9 ■
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40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
Manufacturing activity contracted at a slightly slower rate as the Institute for Supply Management (ISM) Manufacturing Index edged up to

49.1 in September, from 48.7 in August yet remaining below the expansion threshold, signaling the seventh consecutive month of contraction in the manufacturing sector. Production growth factored into the gain, although drops in new orders and inventories offset the increase. The ISM Services Index fell to 50.0 in September from 52.0 in August, which is the breakeven point between expansion and contraction. The 2.0-point decline generally indicated moderate to weak growth, with only isolated reports of supplier delivery delays.

Employment remained in contraction territory, reflecting delayed hiring plans and ongoing challenges in finding qualified workers.

Source: Institute for Supply Management

SURVEY BASED MEASURES
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Components of GDP 9/24 12/24 3/25 6/25

2.7% 2.6% 0.4% 1.7%

0.2% -1.3% 3.8% -2.7%
-0.4% -0.1% -4.7% 4.8%

0.5% 0.3% -0.4% -0.4%

0.4% 0.3% 0.2% 0.3%

3.4% 1.9% -0.6% 3.8%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-40.0%
-30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce In a sharp rebound from the first quarter, real GDP increased at an annualized rate of 3.8% in the second quarter of 2025 according to the final data revision from the Bureau of Economic Analysis. The increase in real GDP in the second quarter was driven by the drop in imports following the significant rise in the first quarter in anticipation of higher tariffs and an increase in consumer spending. The consensus projection calls for 1.7% growth for the third quarter and 1.8% for the full year 2025.

GROSS DOMESTIC PRODUCT (GDP)
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--~ - -------'~
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Reserve lowered its benchmark interest rate by a quarter point to a range of 4.00% to 4.25% at its September meeting, as officials responded to mounting signs of labor market weakness. Chair Jerome Powell said the move was aimed at cushioning the slowdown while keeping policy restrictive enough to fight lingering inflation. The Fed kept its balance-sheet runoff unchanged, maintaining a $5 billion monthly cap on Treasuries and $35 billion on agency and mortgage-backed securities. Since launching its Quantitative Tightening campaign in June 2022, the Fed has reduced its securities holdings by about $2.35 trillion, bringing the total down to roughly $6.6 trillion.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
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■
Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Yield Curve
Sep-25
Jun-25
Sep-24
Yield (%)
At the end of September, the 2-year Treasury yield was 5 basis points lower, and the 10-Year Treasury yield was 40 basis points higher, year-over-year. The spread between the 2-year and 10-year Treasury yield points on the curve decreased to +54 basis points at September month-end versus +61 basis points at August month-end. The prior 2-year/10-year yield curve inversion, which spanned from July 2022 to August 2024, was historically long. The average historical spread (since 2005) is about +99 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +21 basis points in September versus +8 basis points in August.

BOND YIELDS
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··•••••••••••
---------------~------ I ··__·· ___ ~r

ACCOUNT PROFILE
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OBJECTIVES
City of San Rafael | As of September 30, 2025
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 15 , ,, .. CHANDLER
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STATEMENT OF COMPLIANCE
San Rafael Cons | Account #11047 | As of September 30, 2025 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES (CMOS)
Max % (MV; ABS, CMO, & MBS) 20.0 9.3 Compliant
Max Maturity (Years) 5.0 3.7 Compliant
Min Rating (AA- by 1; A- Issuer by 1) 0.0 0.0 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; ABS, CMO & MBS) 20.0 9.3 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1; A- Issuer by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max Amount Issuer (MV) 2.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NONNEGOTIABLE CD/TD)
Max % (MV; CDs & NCDs) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 25.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 13.0 Compliant
Max % Issuer (MV) 5.0 0.6 Compliant
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STATEMENT OF COMPLIANCE
San Rafael Cons | Account #11047 | As of September 30, 2025 Rules Name Limit Actual Compliance
Status Notes
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV; CDs & NCDs) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 5.8 Compliant
Max Maturity (Years) 5 2 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 50.3 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 10.0 1.6 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1; A- Issuer by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max Maturity (Years) 5 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV; CDs & NCDs) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 or A- by 1) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SRI PROHIBITED INVESTMENTS
Prohibited Investments - Energy 0.0 0.0 Compliant
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STATEMENT OF COMPLIANCE
San Rafael Cons | Account #11047 | As of September 30, 2025 Rules Name Limit Actual Compliance
Status Notes

SUPRANATIONAL OBLIGATIONS
Max % (MV) 15.0 1.3 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 18.5 Compliant
Max Maturity (Years) 5 4 Compliant
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PORTFOLIO CHARACTERISTICS
City of San Rafael | Account #11045 | As of September 30, 2025 Benchmark* 9/30/2025
Portfolio
6/30/2025
Portfolio
Average Maturity (yrs) 1.85 2.16 2.19
Average Modified Duration 1.76 1.83 1.84
Average Purchase Yield 4.43% 4.50%
Average Market Yield 3.65% 3.87% 4.07%
Average Quality** AA+ AA AA
Total Market Value 50,140,339 49,545,212
*Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 19 , ,, .. CHANDLER
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SECTOR DISTRIBUTION
City of San Rafael | Account #11045 | As of September 30, 2025 Sector as a Percentage of Market Value
Sector 09/30/2025 06/30/2025
US Treasury 37.47% 36.69%
Corporate 26.19% 26.77%
Agency 11.80% 14.60%
Agency CMBS 10.74% 9.83%
ABS 8.10% 8.92%
Money Mkt Fd 3.14% 0.61%
Supras 2.54% 2.57%
20 50%
25%
0% US Treasury Corporate Agency Agency CMBS ABS
■ 09/30/2025 ■ 06/30/2025
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Money Mkt Fd Supras

ISSUERS
City of San Rafael | Account #11045 | As of September 30, 2025 Issuer Investment Type % Portfolio
United States US Treasury 37.47%
FHLMC Agency CMBS 10.74%
Farm Credit System Agency 6.71%
Federal Home Loan Banks Agency 5.10%
U.S. Bancorp Money Mkt Fd 3.14%
International Bank for Recon and Dev Supras 1.91%
Bank of America Credit Card Trust ABS 1.49%
Honda Auto Receivables Owner Trust ABS 1.29%
Eli Lilly and Company Corporate 1.23%
Bank of Montreal Corporate 1.23%
The Home Depot, Inc. Corporate 1.23%
Bank of America Corporation Corporate 1.20%
Toyota Motor Corporation Corporate 1.19%
The Toronto-Dominion Bank Corporate 1.18%
Caterpillar Inc. Corporate 1.12%
Cisco Systems, Inc. Corporate 1.12%
National Rural Utilities Cooperative Corporate 1.12%
PACCAR Inc Corporate 1.11%
Florida Power & Light Corporate 1.11%
Prologis, Inc. Corporate 1.10%
State Street Corporation Corporate 1.07%
PepsiCo, Inc. Corporate 1.02%
Honda Motor Co., Ltd. Corporate 1.01%
John Deere Owner Trust ABS 1.01%
Chase Issuance Trust ABS 1.01%
Chubb Limited Corporate 1.00%
American Express Credit Master Trust ABS 1.00%
Realty Income Corporation Corporate 1.00%
Morgan Stanley Corporate 0.99%
JPMorgan Chase & Co. Corporate 0.98%
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ISSUERS
City of San Rafael | Account #11045 | As of September 30, 2025 Issuer Investment Type % Portfolio
Deere & Company Corporate 0.87%
U.S. Bancorp Corporate 0.86%
American Express Company Corporate 0.82%
Toyota Auto Receivables Owner Trust ABS 0.74%
BNY Mellon Corp Corporate 0.71%
Public Service Enterprise Group Inco Corporate 0.67%
International Finance Corporation Supras 0.63%
Abbvie Inc. Corporate 0.62%
BMW Vehicle Owner Trust ABS 0.53%
Hyundai Auto Receivables Trust ABS 0.38%
Target Corporation Corporate 0.37%
Merck & Co., Inc. Corporate 0.26%
BMW Vehicle Lease Trust ABS 0.25%
Mercedes-Benz Auto Lease Trust ABS 0.24%
Mercedes-Benz Auto Receivables Trust ABS 0.15%
Cash Cash 0.01%
TOTAL 100.00%
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QUALITY DISTRIBUTION
Rating 09/30/2025 06/30/2025
AAA 12.09% 9.77%
AA 58.87% 59.92%
A 25.16% 25.77%
NA 3.89% 4.54%
Rating 09/30/2025 06/30/2025
Aaa 12.48% 9.74%
Aa 61.80% 63.90%
A 23.00% 23.58%
NA 2.72% 2.78%
Rating 09/30/2025 06/30/2025
AAA 16.72% 14.97%
AA 59.39% 61.65%
A 10.72% 9.98%
NA 13.17% 13.40%
City of San Rafael | Account #11045 | As of September 30, 2025 S&P Rating Moody’s Rating Fitch Rating
23 80%
60%
40%
20%
0% AAA AA A NA Aaa Aa
■ 09/30/2025 ■ 06/30/2025 ■ 09/30/2025
75%
50%
25%
A NA 0%
■ 06/30/2025
AAA
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AA A NA
■ 09/30/2025 ■ 06/30/2025
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 7.0% 5.7% 16.9% 29.3% 21.3% 12.6% 7.2% 0.0% 0.0% ICE BofA 1-3 Year US Treasury & Agency Index 0.0% 0.1% 4.1% 57.3% 38.5% 0.0% 0.0% 0.0% 0.0%

DURATION DISTRIBUTION
City of San Rafael | Account #11045 | As of September 30, 2025 Portfolio Compared to the Benchmark
24 80%
60%
40%
20%
0% 0-.25 .25-.5 .5-1 1-2
■ City of San Rafael
2-3 3-4 4-5
■ ICE BofA 1-3 Year US Treasury & Agency Index
,-,, .. CHANDLER " '·· ASSET MANAGEMENT
5-7 7+
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN*
City of San Rafael 1.23% 4.28% 5.78% 4.97%
Benchmark 1.12% 3.88% 5.29% 4.36%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Realized rate of return: A measure of a portfolio’s return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio.

Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index

INVESTMENT PERFORMANCE
City of San Rafael | Account #11045 | As of September 30, 2025 Total Rate of Return : Inception | 02/01/2023
25 8%
6%
4%
2%
0% 3 Months 12 Months 2 Years
Total Return
3 Years 5 Years
■ Benchmark
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10 Years Since Inception *

HISTORICAL AVERAGE PURCHASE YIELD
City of San Rafael | Account #11045 | As of September 30, 2025 Purchase Yield as of 09/30/25 = 4.43%
26 5%
4%
3%
2%
1%
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PORTFOLIO CHARACTERISTICS
San Rafael Reporting | Account #11046 | As of September 30, 2025 9/30/2025
Portfolio
6/30/2025
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 4.20% 4.27%
Average Market Yield 4.15% 4.23%
Average Quality** AAA AAA
Total Market Value 50,868,311 66,260,395
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 27 , ,, .. CHANDLER
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SECTOR DISTRIBUTION
San Rafael Reporting | Account #11046 | As of September 30, 2025 Sector as a Percentage of Market Value
Sector 09/30/2025 06/30/2025
LAIF 98.85% 98.97%
Cash 1.15% 1.03%
28 ■ 09/30/2025 ■ 06/30/2025
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CONSOLIDATED INFORMATION
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PORTFOLIO CHARACTERISTICS
San Rafael Cons | Account #11047 | As of September 30, 2025 9/30/2025
Portfolio
6/30/2025
Portfolio
Average Maturity (yrs) 1.07 0.93
Average Modified Duration 0.90 0.78
Average Purchase Yield 4.31% 4.37%
Average Market Yield 4.01% 4.16%
Average Quality** AA AA
Total Market Value 101,008,650 115,805,607
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 30 , ,, .. CHANDLER
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SECTOR DISTRIBUTION
San Rafael Cons | Account #11047 | As of September 30, 2025 Sector as a Percentage of Market Value
Sector 09/30/2025 06/30/2025
LAIF 49.96% 56.84%
US Treasury 18.53% 15.62%
Corporate 12.96% 11.40%
Agency 5.84% 6.21%
Agency CMBS 5.31% 4.19%
ABS 4.01% 3.80%
Money Mkt Fd 1.55% 0.26%
Supras 1.26% 1.09%
Cash 0.58% 0.59%
31 75%
50%
25%
0% LAIF US Treasury Corporate Agency Agency CMBS
■ 09/30/2025 ■ 06/30/2025
ABS Money Mkt Fd
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Supras Cash

PORTFOLIO HOLDINGS
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HOLDINGS REPORT
City of San Rafael | Account #11045 | As of September 30, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
43815JAC7 HAROT 2023-1 A3 5.04
04/21/2027 46,044.29 02/16/20235.09%
46,035.73
46,041.09
100.29

4.22%
46,178.70

64.46 0.09%
137.61
Aaa/NA
AAA

1.56 0.34
58768PAC8 MBART 2022-1 A3 5.21
08/16/2027 73,950.51 02/15/20235.03%
74,331.82
74,047.98
100.37

4.14%
74,227.07
171.24

0.15%
179.09
Aaa/AAA
NA

1.88 0.33
89239HAD0 TAOT 2022-D A3 5.3 09/15/2027 164,307.50 02/10/2023

4.86%
166,245.81
164,856.13
100.50

4.24%
165,128.36
387.04

0.33%
272.23
Aaa/NA
AAA

1.96 0.44
47800CAC0 JDOT 2023 A3 5.01 11/15/2027 501,676.60 --

3.66%
502,955.45
502,073.25
100.44

4.24%
503,861.16
1,117.07

1.01%
1,787.91
Aaa/NA
AAA

2.13 0.53
58770JAD6 MBALT 2024-A A3 5.32
01/18/2028 120,000.00 05/17/20245.73%
119,985.96
119,991.18
101.27

4.07%
121,525.82
283.73

0.24%
1,534.65
Aaa/NA
AAA

2.30 0.97
891941AD8 TAOT 2023-B A3 4.71 02/15/2028 204,657.23 10/03/2023

5.68%
200,604.05
202,459.84
100.36

4.13%
205,398.80
428.42

0.41%
2,938.96
Aaa/NA
AAA

2.38 0.58
05592XAD2 BMWOT 2023-A A3 5.47
02/25/2028 52,101.93 07/11/20235.47%
52,092.69
52,097.11
100.71

4.04%
52,469.92

47.50 0.11%
372.80
NA/AAA
AAA

2.41 0.47
05522RDF2 BACCT 2022-2 A 5.0 04/17/2028 440,000.00 04/18/2023

4.59%
444,812.50
440,267.27
100.09

4.27%
440,408.23
977.78

0.88%
140.96
Aaa/AAA
NA

2.55 0.12
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 437,639.82 12/07/20235.10%
444,187.33
441,063.12
101.18

4.06%
442,817.76
689.28

0.89%
1,754.64
Aaa/NA
AAA

2.73 0.69
096912AD2 BMWLT 2025-1 A3 4.43
06/26/2028 125,000.00 06/03/2025

4.82%
124,997.25
124,997.53
100.76

3.97%
125,955.23

92.29 0.25%
957.70
NA/AAA
AAA

2.74 1.53
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 495,000.00 09/07/2023

5.23%
494,862.79
494,918.89
101.21

3.90%
500,966.63
1,135.20

1.01%
6,047.74
NA/AAA
AAA

2.96 0.91
02582JKD1 AMXCA 2023-3 A 5.23 09/15/2026 490,000.00 09/12/2023

5.29%
489,978.10
489,993.00
101.30

3.87%
496,379.80
1,138.98

1.00%
6,386.80
NA/AAA
AAA

0.96 0.91
05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 300,000.00 02/20/2024

4.88%
301,125.00
300,463.30
101.23

3.89%
303,681.24
664.00

0.61%
3,217.94
Aaa/NA
AAA

1.13 1.07
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 210,000.00 06/04/20245.18%
209,968.10
209,976.94
101.18

3.92%
212,475.48
181.30

0.43%
2,498.54
Aaa/AAA
NA

3.41 0.89
437921AD1 HAROT 252 A3 4.15 10/15/2029 155,000.00 04/29/2025

4.15%
154,982.69
154,984.25
100.34

4.00%
155,533.99
285.89

0.31%
549.74
Aaa/NA
AAA

4.04 1.87
44935XAD7 HART 2025-B A3 4.36 12/17/2029 185,000.00 06/03/2025

4.36%
184,983.30
184,984.43
100.95

3.91%
186,758.59
358.49

0.38%
1,774.16
NA/AAA
AAA

4.21 1.94
33 , ,, .. CHANDLER
" '·· ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
4,012,148.57 100.84 4,033,766.78 8.10% 2.38
Total ABS 4,000,377.87 4.85% 4,003,215.33 4.05% 8,022.66 30,551.45 0.81 AGENCY
3130ATUC9 FEDERAL HOME LOAN BANKS 4.5
12/12/2025 1,000,000.00 02/13/2023

4.32%
1,004,720.00
1,000,329.30
100.05

4.19%
1,000,494.08
13,625.00

2.01%
164.78
Aa1/AA+
AA+

0.20 0.20
3130AWGR5 FEDERAL HOME LOAN BANKS

4.375 06/12/2026 525,000.00 06/28/2023

4.43%
524,165.25
524,803.50
100.39

3.80%
527,037.35
6,954.43

1.06%
2,233.85
Aa1/AA+
AA+

0.70 0.67
3133EPSW6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 08/14/2026 560,000.00 08/09/20234.58%
558,712.00
559,627.47
100.63

3.75%
563,551.14
3,290.00

1.13%
3,923.68
Aa1/AA+
AA+

0.87 0.84
3130AXU63 FEDERAL HOME LOAN BANKS

4.625 11/17/2026 500,000.00 12/18/20234.23%
505,325.00
502,061.94
101.01

3.70%
505,054.05
8,607.64

1.01%
2,992.11
Aa1/AA+
AA+

1.13 1.07
3133EP6K6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 03/26/2027 1,000,000.00 04/24/20244.84% 990,700.00
995,275.77
101.18

3.68%
1,011,752.13
625.00

2.03%
16,476.36
Aa1/AA+
AA+

1.48 1.43
3133ERMB4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 07/23/2027 750,000.00 07/18/20244.26% 749,767.50
749,859.86
100.97

3.69%
757,240.86
6,020.83

1.52%
7,381.00
Aa1/AA+
AA+

1.81 1.72
3133ERNP2 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.0 08/06/2027 1,000,000.00 08/19/20243.92% 1,002,290.00
1,001,427.81
100.54

3.69%
1,005,395.27
6,111.11

2.02%
3,967.46
Aa1/AA+
AA+

1.85 1.76
3130ATUS4 FEDERAL HOME LOAN BANKS 4.25
12/10/2027 500,000.00 05/15/20233.66%
512,310.00
505,900.54
101.06

3.74%
505,280.84
6,552.08

1.01%
(619.70)
Aa1/AA+
AA+

2.19 2.05
5,847,989.75 100.70 5,875,805.72 11.80% 1.27
Total Agency 5,835,000.00 4.30% 5,839,286.19 3.79% 51,786.09 36,519.53 1.21

AGENCY CMBS
3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 700,000.00 06/07/2023

4.53%
674,542.97
691,043.99

99.36 3.82%
695,544.01
2,000.83

1.40%
4,500.02
Aa1/AA+
AAA

1.32 1.13
3137F1G44 FHMS K-065 A2 3.243 04/25/2027 450,000.00 06/08/2023

4.39%
431,736.33
442,802.43

98.94 3.86%
445,230.81
1,216.13

0.89%
2,428.38
Aa1/AA+
AAA

1.57 1.42
3137F2LJ3 FHMS K-066 A2 3.117 06/25/2027 350,000.00 04/18/2024

5.06%
330,654.30
339,627.70

98.69 3.87%
345,427.99
909.13

0.69%
5,800.28
Aa1/AA+
AAA

1.73 1.51
3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 240,000.00 06/08/2023

4.34%
229,940.63
235,543.23

98.83 3.82%
237,186.53
648.80

0.48%
1,643.30
Aaa/AA+
AA+

1.90 1.75
34 , ,, .. CHANDLER
" '·· ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 488,165.20 06/09/2023

4.41%
465,320.59
477,781.28

98.57 3.87%
481,198.35
1,296.49

0.97%
3,417.06
Aa1/AAA
AA+

1.99 1.84
3137FETN0 FHMS K-073 A2 3.35 01/25/2028 670,000.00 05/24/2023

4.34%
643,932.81
657,222.88

98.78 3.86%
661,812.00
1,870.42

1.33%
4,589.12
Aa1/AA+
AAA

2.32 2.09
3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 780,000.00 05/24/2023

4.65%
765,679.69
772,489.40

99.80 3.86%
778,461.92
2,502.50

1.56%
5,972.51
Aa1/AA+
AAA

2.65 2.40
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 350,000.00 11/21/2024

4.53%
342,070.31
343,893.43

99.91 3.87%
349,683.36
1,137.50

0.70%
5,789.92
Aa1/AA+
AAA

2.90 2.67
3137FJZ93 FHMS K-084 A2 3.78 10/25/2028 500,000.00 09/08/2025

3.76%
499,472.66
499,482.11

99.55 3.88%
497,771.00
1,575.00

1.00%
(1,711.11)
Aaa/AA+
AA+

3.07 2.80
3137FLMV3 FHMS K-090 A2 3.422 02/25/2029 650,000.00 03/26/2025

4.37%
627,656.25
630,586.58

98.38 3.90%
639,452.32
1,853.58

1.28%
8,865.74
Aa1/AAA
AA+

3.41 3.10
3137FMTY8 FHMS K-094 A2 2.903 06/25/2029 225,000.00 06/21/2024

4.65%
207,764.65
212,185.93

96.43 3.93%
216,966.47
544.31

0.44%
4,780.53
Aa1/AA+
AAA

3.73 3.40
5,218,771.19 99.00 5,348,734.73 10.74% 2.38
Total Agency CMBS 5,403,165.20 4.44% 5,302,658.97 3.86% 15,554.68 46,075.76 2.16 CASH
CCYUSD Receivable 3,404.41 -- 3,404.41
3,404.41

1.00 0.00%
3,404.41

0.00 0.01%

0.00 Aaa/AAA
AAA

0.00 0.00
3,404.41 1.00 3,404.41 0.01% 0.00
Total Cash 3,404.41 3,404.41 0.00% 0.00 0.00 0.00

CORPORATE
00440EAV9 CHUBB INA HOLDINGS LLC 3.35
05/03/2026 500,000.00 03/09/20235.09%
475,060.00
495,346.85

99.58 4.07%
497,905.29
6,886.11

1.00%
2,558.44
A2/A
A

0.59 0.57
341081GR2 FLORIDA POWER & LIGHT CO 4.45
05/15/2026 550,000.00 05/18/20234.65%
547,030.00
549,383.64
100.17

4.17%
550,924.18
9,246.11

1.11%
1,540.54
A1/A
A+

0.62 0.52
74340XBK6 PROLOGIS LP 3.25 10/01/2026 550,000.00 01/16/2024

4.53%
532,240.50
543,432.40

99.25 4.02%
545,867.23
8,937.50

1.10%
2,434.83
A2/A
NA

1.00 0.97
89236TDR3 TOYOTA MOTOR CREDIT CORP 3.2
01/11/2027 600,000.00 01/22/2024

4.57%
577,398.00
590,253.80

99.08 3.94%
594,470.09
4,266.67

1.19%
4,216.29
A1/A+
A+

1.28 1.23
35 , ,, .. CHANDLER
" '·· ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
63743HFM9

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.8
02/05/2027
550,000.00 01/25/2024

4.75%
550,792.00
550,342.83
100.97

4.05%
555,317.39
4,106.67

1.12%
4,974.56
A2/AA1.35

1.21 17275RBQ4 CISCO SYSTEMS INC 4.8
02/26/2027 550,000.00 -- 4.82%
549,759.00
549,885.90
101.20

3.91%
556,603.08
2,566.67

1.12%
6,717.18
A1/AANA1.41

1.26 857477CL5 STATE STREET CORP 4.993
03/18/2027 525,000.00 03/13/2024

4.99%
525,000.00
525,000.00
101.54

3.90%
533,080.99
946.59

1.07%
8,080.99
Aa3/A
AA1.461.32
06406RBQ9 BANK OF NEW YORK MELLON
CORP 4.947 04/26/2027 350,000.00 04/19/20235.26%
350,497.00
350,093.87
100.48

4.77%
351,685.71
7,454.85

0.71%
1,591.84
Aa3/A
AA1.570.55
14913UAL4 CATERPILLAR FINANCIAL SERVICES
CORP 5.0 05/14/2027 550,000.00 05/13/20245.01%
549,818.50
549,902.12
101.74

3.88%
559,543.84
10,465.28

1.12%
9,641.72
A2/A
A+

1.62 1.52
74456QBS4 PUBLIC SERVICE ELECTRICAND
GAS CO 3.0 05/15/2027 337,000.00 04/18/2023

4.48%
318,673.94
329,711.51

98.60 3.90%
332,267.46
3,819.33

0.67%
2,555.95
A1/A
NA

1.62 1.55
437076DB5 HOME DEPOT INC 4.875
06/25/2027 600,000.00 06/20/20244.92%
599,208.00
599,542.88
101.66

3.88%
609,930.40
7,800.00

1.23%
10,387.51
A2/A
A

1.73 1.56
532457CP1 ELI LILLY AND CO 4.15 08/14/2027 305,000.00 08/12/2024

4.18%
304,752.95
304,846.13
100.65

3.78%
306,989.47
1,652.51

0.62%
2,143.34
Aa3/A+
NA

1.87 1.70
24422EXZ7 JOHN DEERE CAPITAL CORP 4.65
01/07/2028 425,000.00 01/06/20254.66%
424,872.50
424,903.41
101.63

3.89%
431,945.18
4,611.25

0.87%
7,041.77
A1/A
A+

2.27 2.12
89115A2M3 TORONTO-DOMINION BANK 5.156
01/10/2028 575,000.00 07/12/20235.29%
571,929.50
573,445.10
102.38

4.05%
588,672.25
6,670.58

1.18%
15,227.15
A2/AAA2.28

2.11 756109AU8 REALTY INCOME CORP 3.65
01/15/2028 500,000.00 04/10/20234.87%
474,240.00
487,616.24

99.17 4.03%
495,841.12
3,852.78

1.00%
8,224.88
A3/ANA2.29

2.16 06051GGF0 BANK OF AMERICA CORP 3.824
01/20/2028 600,000.00 07/12/20235.89%
567,738.00
588,058.54

99.53 4.89%
597,209.17
4,525.07

1.20%
9,150.63
A1/AAA2.31

1.25 46647PEA0 JPMORGAN CHASE & CO 5.04
01/23/2028 200,000.00 01/17/20244.99%
200,292.00
200,127.62
101.13

4.64%
202,268.38
1,904.00

0.41%
2,140.76
A1/A
AA2.311.25
06368LGV2 BANK OF MONTREAL 5.203
02/01/2028 600,000.00 09/05/20235.48%
593,520.00
596,562.54
102.44

4.09%
614,665.29
5,203.00

1.23%
18,102.75
A2/AAA2.34

2.09 02665WFX4 AMERICAN HONDA FINANCE
CORP 4.55 03/03/2028 500,000.00 03/06/20254.60%
499,255.00
499,396.90
100.91

4.15%
504,544.68
1,769.44

1.01%
5,147.78
A3/ANA2.42

2.27 00287YDY2 ABBVIE INC 4.65 03/15/2028 305,000.00 02/18/2025

4.70%
304,594.35
304,673.44
101.65

3.94%
310,024.22
630.33

0.62%
5,350.78
A3/ANA2.46

2.23 36
, ,, .. CHANDLER
" '·· ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
90331HPS6 US BANK NA 4.73 05/15/2028 425,000.00 05/12/2025

4.88%
425,000.00
425,000.00
100.89

4.49%
428,763.84
7,594.28

0.86%
3,763.84
A2/A+
A+

2.62 1.52
58933YBH7 MERCK & CO INC 4.05 05/17/2028 130,000.00 05/08/2023

4.07%
129,894.70
129,944.73
100.55

3.83%
130,708.98
1,959.75

0.26%
764.25
Aa3/A+
NA

2.63 2.36
87612EBU9 TARGET CORP 4.35 06/15/2028 180,000.00 06/05/2025

4.35%
179,998.20
179,998.38
100.99

3.96%
181,790.15
2,414.25

0.37%
1,791.76
A2/A
A

2.71 2.43
61744YAK4 MORGAN STANLEY 3.591
07/22/2028 500,000.00 08/10/2023

5.87%
465,070.00
480,153.41

98.95 4.00%
494,738.07
3,441.38

0.99%
14,584.66
A1/AA+2.81

1.72 46647PEU6 JPMORGAN CHASE & CO 4.915
01/24/2029 280,000.00 01/16/2025

4.92%
280,000.00
280,000.00
101.80

4.34%
285,048.11
2,561.26

0.57%
5,048.11
A1/A
AA3.322.15
713448FX1 PEPSICO INC 4.5 07/17/2029 500,000.00 07/16/2024

4.52%
499,490.00
499,613.17
101.78

3.99%
508,886.43
4,625.00

1.02%
9,273.26
A1/A+
NA

3.79 3.36
025816EJ4 AMERICAN EXPRESS CO 4.351
07/20/2029 405,000.00 07/21/20254.35%
405,000.00
405,000.00
100.59

4.33%
407,389.46
3,230.62

0.82%
2,389.46
A2/AA3.80

2.60 532457CV8 ELI LILLY AND CO 4.75 02/12/2030 300,000.00 02/10/2025

4.75%
300,066.00
300,057.51
102.57

4.10%
307,720.99
1,939.58

0.62%
7,663.48
Aa3/A+
NA

4.37 3.83
69371RT71 PACCAR FINANCIAL CORP 4.55
05/08/2030 545,000.00 05/05/20254.59%
544,155.25
544,222.79
101.80

4.12%
554,788.75
9,850.12

1.11%
10,565.95
A1/A+
NA

4.60 4.05
Total Corporate 12,937,000.00 4.89%
12,745,345.39
12,856,515.71
100.81

4.10%
13,039,590.19
134,930.96

26.19%
183,074.48

2.17 1.79

MONEY MARKET
FUND
31846V807 FIRST AMER:TRS OBG Y 1,561,237.90 --

3.70%
1,561,237.90
1,561,237.90

1.00 3.70%
1,561,237.90

0.00 3.14%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 1,561,237.90 3.70%
1,561,237.90
1,561,237.90

1.00 3.70%
1,561,237.90

0.00 3.14%

0.00 0.00

0.00 SUPRANATIONAL
45950KDD9 INTERNATIONAL FINANCE CORP

4.5 07/13/2028 305,000.00 07/06/20234.53%
304,661.45
304,811.73
102.13

3.68%
311,507.64
2,973.75

0.63%
6,695.91
Aaa/AAA
NA

2.79 2.58
37 , ,, .. CHANDLER
" '·· ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
650,000.00 12/17/2024

4.32%
637,513.50
639,546.19
100.53

3.73%
653,420.91
11,544.00

1.31%
13,874.73
Aaa/AAA
NA

4.04 3.65
459058LR2

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 4.125 03/20/2030
295,000.00 03/14/2025

4.20%
293,946.85
294,059.32
101.48

3.76%
299,368.10
371.82

0.60%
5,308.78
Aaa/AAA
NA

4.47 4.05
Total Supranational 1,250,000.00 4.34%
1,236,121.80
1,238,417.23
101.15

3.73%
1,264,296.65
14,889.57

2.54%
25,879.42

3.83 3.48

US TREASURY
9128285N6 UNITED STATES TREASURY 2.875
11/30/2025 500,000.00 01/12/20233.15%
496,212.61
499,784.19

99.80 4.08%
498,990.89
4,830.94

1.00%
(793.31)
Aa1/AA+
AA+

0.17 0.16
91282CGE5 UNITED STATES TREASURY 3.875
01/15/2026 1,000,000.00 02/06/20234.13%
992,929.69
999,301.54

99.97 3.95%
999,697.27
8,213.32

2.01%
395.73
Aa1/AA+
AA+

0.29 0.28
91282CBQ3 UNITED STATES TREASURY 0.5
02/28/2026 500,000.00 01/12/20233.50%
455,839.84
494,204.70

98.61 3.90%
493,062.50
214.09

0.99%
(1,142.20)
Aa1/AA+
AA+

0.41 0.41
91282CKH3 UNITED STATES TREASURY 4.5
03/31/2026 1,000,000.00 04/24/20244.96%
991,679.69
997,863.86
100.32

3.84%
1,003,203.12
123.63

2.02%
5,339.26
Aa1/AA+
AA+

0.50 0.49
91282CBW0 UNITED STATES TREASURY 0.75
04/30/2026 500,000.00 01/12/20234.46%
443,595.43
490,115.15

98.25 3.82%
491,242.19
1,569.29

0.99%
1,127.04
Aa1/AA+
AA+

0.58 0.57
9128286X3 UNITED STATES TREASURY 2.125
05/31/2026 500,000.00 01/12/20234.31%
465,958.71
493,329.56

98.88 3.84%
494,410.16
3,570.70

0.99%
1,080.59
Aa1/AA+
AA+

0.67 0.65
91282CCJ8 UNITED STATES TREASURY 0.875
06/30/2026 500,000.00 01/12/20234.42%
443,595.43
487,871.90

97.87 3.79%
489,349.61
1,105.64

0.98%
1,477.71
Aa1/AA+
AA+

0.75 0.73
91282CHY0 UNITED STATES TREASURY 4.625
09/15/2026 900,000.00 09/25/2023

4.81%
895,429.69
898,529.92
100.84

3.73%
907,516.40
1,839.78

1.82%
8,986.49
Aa1/AA+
AA+

0.96 0.93
91282CJC6 UNITED STATES TREASURY 4.625
10/15/2026 500,000.00 10/19/20235.05%
494,218.75
497,991.66
100.92

3.71%
504,623.05
10,677.94

1.01%
6,631.38
Aa1/AA+
AA+

1.04 0.99
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 625,000.00 06/26/20244.50%
627,148.44
626,233.91
101.59

3.65%
634,936.53
8,529.71

1.28%
8,702.61
Aa1/AA+
AA+

1.71 1.61
91282CLG4 UNITED STATES TREASURY 3.75
08/15/2027 650,000.00 06/11/20253.96%
647,207.03
647,597.48
100.21

3.63%
651,345.70
3,113.11

1.31%
3,748.22
Aa1/AA+
AA+

1.87 1.79
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 750,000.00 12/18/20234.06%
751,669.92
750,881.51
100.96

3.62%
757,236.33

84.99 1.52%
6,354.82
Aa1/AA+
AA+

2.00 1.90
38 , ,, .. CHANDLER
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Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CLQ2 UNITED STATES TREASURY 3.875
10/15/2027 500,000.00 11/15/20244.29%
494,394.53
496,069.30
100.49

3.62%
502,460.94
8,946.38

1.01%
6,391.64
Aa1/AA+
AA+

2.04 1.91
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 1,000,000.00 02/06/20233.84%
1,001,445.31
1,000,663.65
100.55

3.62%
1,005,507.81
9,792.80

2.02%
4,844.16
Aa1/AA+
AA+

2.25 2.12
91282CMF5 UNITED STATES TREASURY 4.25
01/15/2028 750,000.00 01/27/20254.24%
750,292.97
750,226.36
101.36

3.62%
760,224.61
6,756.11

1.53%
9,998.25
Aa1/AA+
AA+

2.29 2.15
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 525,000.00 10/17/2024

3.91%
519,934.57
521,268.99
100.02

3.62%
525,082.03
6,395.75

1.05%
3,813.04
Aa1/AA+
AA+

2.67 2.49
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 750,000.00 03/12/20244.22%
743,496.09
745,844.95
100.98

3.62%
757,353.52
7,581.52

1.52%
11,508.56
Aa1/AA+
AA+

2.75 2.56
91282CJA0 UNITED STATES TREASURY 4.625
09/30/2028 500,000.00 10/19/20234.95%
492,968.75
495,739.23
102.81

3.63%
514,062.50

63.53 1.03%
18,323.27
Aa1/AA+
AA+

3.00 2.79
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 600,000.00 10/17/20243.92%
596,039.06
596,937.05
100.32

3.64%
601,898.44
5,686.14

1.21%
4,961.39
Aa1/AA+
AA+

3.25 3.01
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 700,000.00 06/11/20253.99%
703,335.94
703,069.16
101.52

3.66%
710,664.07

79.33 1.43%
7,594.91
Aa1/AA+
AA+

3.50 3.23
91282CEM9 UNITED STATES TREASURY 2.875
04/30/2029 750,000.00 09/18/20243.51%
729,931.64
734,424.38

97.35 3.67%
730,136.72
9,023.44

1.47%
(4,287.66)
Aa1/AA+
AA+

3.58 3.32
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 600,000.00 05/21/20254.08%
603,796.88
603,462.75
101.99

3.68%
611,929.69
6,444.29

1.23%
8,466.93
Aa1/AA+
AA+

3.75 3.41
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 650,000.00 09/26/2024

3.56%
651,955.08
651,554.07

99.76 3.69%
648,425.78
2,017.78

1.30%
(3,128.29)
Aa1/AA+
AA+

3.92 3.61
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 600,000.00 12/11/20244.09%
600,820.31
600,685.58
101.59

3.70%
609,539.06
10,357.34

1.22%
8,853.48
Aa1/AA+
AA+

4.08 3.67
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 650,000.00 04/17/20253.90%
652,996.09
652,725.53
101.14

3.72%
657,439.45

71.43 1.32%
4,713.92
Aa1/AA+
AA+

4.50 4.09
91282CGZ8 UNITED STATES TREASURY 3.5
04/30/2030 600,000.00 07/23/20253.91%
589,429.69
589,848.62

99.04 3.73%
594,234.37
8,788.04

1.19%
4,385.76
Aa1/AA+
AA+

4.58 4.13
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 750,000.00 08/27/20253.74%
754,394.53
754,311.43
100.60

3.74%
754,511.72
4,896.40

1.52%
200.29
Aa1/AA+
AA+

4.83 4.35
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 750,000.00 09/16/2025

3.58%
751,347.66
751,337.23

99.48 3.74%
746,132.81
2,328.21

1.50%
(5,204.42)
Aa1/AA+
AA+

4.92 4.45
Total US Treasury 18,600,000.00 4.12%
18,342,064.33
18,531,873.68
100.31

3.72%
18,655,217.23
133,101.63

37.47%
123,343.55

2.40 2.21
39 , ,, .. CHANDLER
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Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Portfolio 49,590,185.38 4.43%
48,967,083.34
49,336,609.42

97.29 3.87%
49,782,053.61
358,285.60
100.00%
445,444.20

2.16 1.83
Total Market Value +
Accrued 50,140,339.21
40 , ,, .. CHANDLER
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HOLDINGS REPORT
San Rafael Reporting | Account #11046 | As of September 30, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 583,258.22 -- 583,258.22
583,258.22

1.00 0.00%
583,258.22

0.00 1.15%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 583,258.22
583,258.22
583,258.22

1.00 0.00%
583,258.22

0.00 1.15%

0.00 0.00

0.00 LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 50,285,053.02 --

4.20%
50,285,053.02
50,285,053.02

1.00 4.20%
50,285,053.02

0.00 98.85%

0.00 NA/NA
NA

0.00 0.00
Total LAIF 50,285,053.02 4.20%
50,285,053.02
50,285,053.02

1.00 4.20%
50,285,053.02

0.00 98.85%

0.00 0.00

0.00 Total Portfolio 50,868,311.24 4.20%
50,868,311.24
50,868,311.24

1.00 4.15%
50,868,311.24

0.00 100.00%

0.00 0.00

0.00 Total Market Value +
Accrued 50,868,311.24
41 , ,, .. CHANDLER
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TRANSACTIONS
42 , ,,a CHANDLER ~ ,-- ASSET MANAGEMENT

TRANSACTION LEDGER
City of San Rafael | Account #11045|07/01/2025 Through 09/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 07/24/2025 91282CGZ8 600,000.00

UNITED STATES
TREASURY 3.5
04/30/2030

98.238 3.91% (589,429.69) (4,850.54) (594,280.23) 0.00
Purchase 07/25/2025 025816EJ4 405,000.00 AMERICAN EXPRESS CO 4.351 07/20/2029 100.000 4.35% (405,000.00) 0.00 (405,000.00) 0.00 Purchase 08/28/2025 91282CNN7 750,000.00

UNITED STATES
TREASURY 3.875
07/31/2030
100.586 3.74% (754,394.53) (2,211.28) (756,605.81) 0.00 Purchase 09/11/2025 3137FJZ93 500,000.00 FHMS K-084 A2 3.78 10/25/2028 99.895 3.76% (499,472.66) (525.00) (499,997.66) 0.00 Purchase 09/17/2025 91282CNX5 750,000.00

UNITED STATES
TREASURY 3.625
08/31/2030
100.180 3.58% (751,347.66) (1,276.76) (752,624.42) 0.00 Total Purchase 3,005,000.00 (2,999,644.54) (8,863.58) (3,008,508.12) 0.00 TOTAL
ACQUISITIONS 3,005,000.00 (2,999,644.54) (8,863.58) (3,008,508.12) 0.00

DISPOSITIONS
Maturity 09/12/2025 3130ATHT7 (1,300,000.00)

FEDERAL HOME
LOAN BANKS 4.375
09/12/2025
100.000 4.28% 1,300,000.00 0.00 1,300,000.00 0.00
Total Maturity (1,300,000.00) 1,300,000.00 0.00 1,300,000.00 0.00 Sale 07/24/2025 91282CAM3 (500,000.00)

UNITED STATES
TREASURY 0.25
09/30/2025

99.250 3.65% 496,250.00 392.76 496,642.76 (764.40)
Sale 08/28/2025 78016FZT4 (550,000.00)

ROYAL BANK OF
CANADA 4.875
01/12/2026
100.111 5.34% 550,610.50 3,426.04 554,036.54 1,487.92
Sale 09/11/2025 91282CJE2 (1,000,000.00)

UNITED STATES
TREASURY 5.0
10/31/2025
100.113 5.09% 1,001,132.81 18,206.52 1,019,339.33 1,260.51 Total Sale (2,050,000.00) 2,047,993.31 22,025.32 2,070,018.63 1,984.04 TOTAL
DISPOSITIONS (3,350,000.00) 3,347,993.31 22,025.32 3,370,018.63 1,984.04 43 , ,, .. CHANDLER
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TRANSACTION LEDGER
San Rafael Reporting | Account #11046|07/01/2025 Through 09/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 07/15/2025 90LAIF$00 704,509.79
Local Agency
Investment Fund State
Pool

1.000 4.26% (704,509.79) 0.00 (704,509.79) 0.00
Total Purchase 704,509.79 (704,509.79) 0.00 (704,509.79) 0.00 TOTAL
ACQUISITIONS 704,509.79 (704,509.79) 0.00 (704,509.79) 0.00

DISPOSITIONS
Sale 07/10/2025 90LAIF$00 (8,000,000.00)
Local Agency
Investment Fund State
Pool

1.000 4.26% 8,000,000.00 0.00 8,000,000.00 0.00
Sale 08/11/2025 90LAIF$00 (8,000,000.00)
Local Agency
Investment Fund State
Pool

1.000 4.25% 8,000,000.00 0.00 8,000,000.00 0.00
Total Sale (16,000,000.00) 16,000,000.00 0.00 16,000,000.00 0.00 TOTAL
DISPOSITIONS (16,000,000.00) 16,000,000.00 0.00 16,000,000.00 0.00 44 , ,, .. CHANDLER
" '·· ASSET MANAGEMENT

IMPORTANT DISCLOSURES
City of San Rafael | Account #11045 | As of September 30, 2025 2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “asis” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 45 , ,, .. CHANDLER
" '·· ASSET MANAGEMENT

BENCHMARK DISCLOSURES
City of San Rafael | Account #11045 | As of September 30, 2025 Benchmark Disclosure
ICE BofA 1-3 Yr US Treasury & Agency Index
The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 46 , ,, .. CHANDLER
" '·· ASSET MANAGEMENT
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.f
Meeting Date: November 17, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: April Miller, Public Works Director City Manager Approval: _________ TOPIC: US 101/I-580 MULTIMODAL AND LOCAL ACCESS IMPROVEMENT PROJECT

MEMORANDUM OF UNDERSTANDING
SUBJECT: RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A MEMORANDUM OF

UNDERSTANDING BETWEEN THE TRANSPORTATION AUTHORITY OF MARIN (TAM) AND THE CITY OF SAN RAFAEL FOR THE US 101/I-580 MULTIMODAL AND

LOCAL ACCESS IMPROVEMENT PROJECT
RECOMMENDATION:

Staff recommends that the City Council adopt the resolution authorizing the Mayor to execute a memorandum of understanding (MOU) between the Transportation Authority of Marin (TAM) and the City of San Rafael for the US-101/I-580 Multimodal and Local Access Improvement Project.

BACKGROUND:

The Transportation Authority of Marin (TAM) manages the US-101/I-580 Multimodal and Local Access Improvement Project (Project), which is located through the southeast portion of the City of San Rafael and includes local improvements on Bellam Blvd.

The objective of the proposed project is to reduce congestion and improve traffic flow on NB US-101 and local streets. TAM is exploring alternatives to accomplish this, including local improvements on Bellam Boulevard and potentially a direct highway connection from northbound US-101 to eastbound I-580 and the Richmond-San Rafael Bridge. The local improvements along Bellam Boulevard for the project will also enhance existing multimodal connections (bicycle, pedestrian, and transit), including bicycle and pedestrian connection improvements. This project is a collaborative effort between TAM, the Department of Transportation (Caltrans), and the City of San Rafael.

TAM presented the project at several City Council meetings over the years, including December 7, 2020, July 6, 2021, November 7, 2022, and April 15, 2024. Exhibit G in Attachment 3 includes the adopted City Council Guiding principles for the project that were approved at the July 6, 2021, City Council meeting.

The project is currently in the environmental phase, conducting technical analyses to evaluate options and collaborating with the community and stakeholders to select a preferred alternative.

ANALYSIS:

The purpose of the MOU is to acknowledge the shared interest in the Project by the Transportation Authority of Marin and the City of San Rafael. The MOU commits the Parties to develop a shared SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
understanding of the Project area, community context, transportation needs, preliminary alignment concepts and tradeoffs, inclusive evaluation and environmental reviews of proposed project alternatives, and respective Project responsibilities.

Upon circulation of the draft environmental document (DED), TAM and Caltrans will review the comments received from the public and the partnering agencies (including the City of San Rafael's comments) on the DED. TAM and Caltrans will select the preferred alternative based on the input received. The decision on the preferred alternative is expected in 2027.

City staff attend regular meetings with the TAM project team, including community meetings, environmental scoping meetings, Bellam Blvd-specific workshops, TAM Transportation Advisory Working Group, and other project-related meetings. If the City Council approves the MOU, it will then go to the TAM board for approval.

COMMUNITY OUTREACH:

TAM has a dedicated webpage for this project, which includes a section on community engagement.

FISCAL IMPACT:

There is no direct fiscal impact associated with signing the MOU.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the resolution as presented.

2. Do not adopt the resolution and provide further direction to staff.

RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution

2. Draft Memorandum of Understanding

3. Memorandum of Understanding Appendix
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING THE MAYOR TO

EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE TRANSPORTATION AUTHORITY OF MARIN AND THE CITY OF SAN RAFAEL FOR THE US-101/I-580

MULTIMODAL AND LOCAL ACCESS IMPROVEMENT PROJECT
WHEREAS, the Transportation Authority of Marin (TAM) manages the US-101/I-580 Multimodal and Local Access Improvement Project (Project); and WHEREAS, the Project is located through the southeast portion of the City of San Rafael, and local improvements are on Bellam Blvd; and
WHEREAS, the City of San Rafael adopted Guiding Principles for the Project at the July 6, 2021, City Council meeting; and
WHEREAS, the City of San Rafael and TAM acknowledge there is a shared interest in the Project and agree to sign a Memorandum of Understanding (MOU); and WHEREAS, this MOU commits both Parties to develop a shared understanding of the Project area, community context, transportation needs, preliminary alignment concepts, and tradeoffs, as well as inclusive evaluation and environmental reviews to identify a preferred alternative and respective Project responsibilities.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:

1. The Mayor is hereby authorized to execute an MOU with the Transportation Authority of Marin for the US-101/I-580 Multimodal and Local Access Improvement Project (Project), in a form approved by the City Attorney.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City on Monday, the 3rd day of November 2025, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

Lindsay Lara, City Clerk
1 MEMORANDUM OF UNDERSTANDING
FOR
US 101/I-580 Multi-Modal and Local Access Improvement Project I. PURPOSE OF THE MOU
This Memorandum of Understanding (MOU) by and between the Transportation Authority of Marin (TAM) and the City of San Rafael, collectively referred to as the “Parties”, acknowledges a shared interest in advancing the U.S. 101/I-580 Multi-Modal and Local Access Improvement Project (Project) through a coordinated, inclusive, and efficient collaboration to evaluate project alternatives..

The MOU, executed on ____________________, commits the Parties to cooperate to develop a shared understanding of the Project area (Exhibit E), community context, transportation needs, preliminary alignment concepts and tradeoffs, inclusive evaluation and environmental reviews of proposed project alternatives, and respective Project responsibilities. .

The term of the MOU shall commence upon execution by all parties, and unless amended, shall terminate at the completion of the Project Approval/Environmental Document (PAED) phase. The MOU may be amended by mutual consent of the Parties. This MOU is a useful step toward defining Cooperative Agreements that may follow in subsequent Project phases.

The MOU solely constitutes a guide to the Parties’ intentions, general objectives, and management framework. It is not intended to authorize funding or project effort, nor is it a legally binding contract.

Funding commitments, providing for the deposit of funds or specific work phases or project effort, committing machine or personnel time, will be covered by one or more separate cooperative agreements in subsequent phases of the Project.

An Appendix is attached to the MOU with the Exhibits referenced within this document.

II. PROJECT CONTEXT
The Metropolitan Transportation Commission (MTC) has placed a high priority on improving travel across the region’s bridges, including their approaches. The Commission’s Richmond-San Rafael Forward program supports a suite of strategies to increase the number of people moving across the Richmond-San Rafael (RSR) Bridge.

Caltrans owns and maintains the Richmond-San Rafael (RSR) Bridge, U.S. 101, and Interstate (I)-580, which are part of the National Highway System and California’s State Highway System. The northbound to eastbound approach from U.S. 101 to the RSR Bridge is currently only accessible from low-speed, signalized, local roads, resulting in traffic delays that back up onto U.S. 101 and disrupt local road networks in Larkspur and San Rafael.

The City of San Rafael manages Bellam Boulevard within its 100-foot right-of-way. The street serves as a major multi-modal circulation route connecting diverse East San Rafael neighborhoods and businesses to U.S. 101, I-580, and other parts of the city. Currently, regional traffic moving between U.S. 101 and I-580 creates local travel delays and increases safety risks for bikes and pedestrians, including connection to 2 commercial and industrial businesses along Andersen Drive and the North-South Greenway multi-use pathway at its southwestern terminus.

TAM is the project sponsor for the PAED phase. Working closely with the City of San Rafael and multicultural non-profit partners, TAM is prioritizing inclusive, culturally appropriate community engagement. TAM engaged an equity planning expert to assist in designing and implementing an outreach and education plan. The plan included a multi-session, community-centered short-term training course focused on barriers to engagement in transportation planning and broader civic efforts. Other efforts include bilingual meeting and presentation materials and co-hosting local Spanish-language social media and community events to gather local input on needs, usage patterns, concerns, ambitions, and possible solutions for Bellam Boulevard, between Kerner Avenue and Anderson Drive. TAM also maintains a Project website: www.Marin101-580.com.

The estimated cost of the project ranges between $20 - $290M depending on which of the three alternatives is selected (See Exhibit B). These costs are in 2030 dollars, subject to change, and do not include costs associated with required VMT mitigations. The project scope is funded by $135M from the Bay Area voter-approved Regional Measure 3 and $16.5M from the local voter-approved TAM Measure AA sales tax and expenditure plan. Additional funding will be required to complete the Project. A RM3 amendment will be required if the local alternative, Alternative 1, is selected., III. PURPOSE AND NEED FOR THE PROJECT
The Purpose of the project is to do the following:

1. Improve regional connectivity between northbound U.S. Route 101 and eastbound I-580.

2. Improve traffic operations on local streets and freeway segments.

3. Enhance the active transportation (bicycle and pedestrian) network and improve bicycle and pedestrian safety within the community.

4. Improve transit access and travel times.

5. Support economic prosperity by providing better and more reliable access to local businesses.

6. Improve community cohesion by enhancing local connectivity to work, school, and businesses for disadvantaged communities near the project area.

The Need for the project is:

1. Lack of connectivity between regional corridors.

2. Deficient traffic operations on local and regional facilities.

3. Limited local bicycle and pedestrian facilities.

4. Absence of transit links.

IV. PROJECT SCOPE
The Parties agree to the following Project Scope:

1. Execute a Memorandum of Understanding (MOU) to guide agency collaboration and public outreach during the PAED phase of the Project.

2. Maintain equitable community stakeholder engagement throughout the Project.

3. Complete an environmental document and evaluate two alternatives for a NB US101/EB I-580 Connector design with traffic, bicycle, and pedestrian improvements on Bellam Boulevard, 3 between Kerner Avenue and Anderson Drive, and one Alternative that addresses the local Bellam corridor, without a direct connector, and the No Build Alternative.

4. Develop a conceptual design of a future WB I-580 to SB U.S. 101 connector.

Proposed Project design elements to be evaluated may include the following (note that some design elements do not apply to all alternatives):

1. A two-lane connector with standard shoulder from NB U.S. 101 to EB I-580.

2. Replacing the existing EB I-580 Bellam Blvd. undercrossing to better accommodate bicyclists and pedestrians on Bellam Boulevard.

3. Realigning and modifying the Bellam ramps to improve traffic operations and operational efficiency.

4. Operational improvements along Bellam Boulevard, including but not necessarily limited to roundabouts and/or signalized intersections.

5. Potentially extending the auxiliary lane from Bellam Blvd. to Sir Francis Drake along EB I-580.

6. Potentially replacing the WB I-580 Sir Francis Drake overcrossing to meet Caltrans design standards.

7. Potentially improving the Andersen Drive and Sir Francis Drake Blvd intersection.

8. Improving bicycle/pedestrian facilities on Bellam Blvd. from Kerner Blvd. to North-South Greenway entries, across and WB along Andersen Drive.

9. A conceptual design for a future WB I-580 to SB U.S. 101 connector.

10. Improved traffic operation systems (TOS), including signalization, ramp metering, and transit advantage elements.

11. Installing Bellam Boulevard Gateway elements, including artwork, landscaping, and lighting.

This scope was arrived at in collaboration with project partners after evaluating several alternatives, as shown in Exhibits C and D.

V. KEY PROJECT ISSUES
Ongoing Stakeholder engagement has identified the following community issues that the Project may consider:

A. Shared Concerns

1. Freeway travel times

2. Regional through-traffic impacts on local streets (Poor LOS)

3. Local traffic back-ups onto U.S. 101 at the Bellam Blvd. off-ramp and Sir Francis Drake. Ability of a low-speed freeway connector near Bellam Blvd. to eliminate NB U.S. 101 PM congestion

4. Bike/pedestrian safety in the vicinity of the project, including a separated bike/pedestrian path, improved crosswalks, and lighting

5. Bus stop improvements and reliability of transit travel times

6. Social, economic, and environmental neighborhood impacts

7. Project cost

8. Business tax base impacts and opportunities

9. Impact on adopted plans and projects in the vicinity of the Project

10. Disposition of excess right-of-way upon project completion

11. Equitable outcomes

12. Air quality and noise impacts
4 13. Construction impacts

14. Project aesthetics and visual impacts

15. Emergency access to/from east San Rafael neighborhoods B. San Rafael Guiding Principles
In July 2021, the City of San Rafael adopted Guiding Principles for the project, which are included in the Appendix as Exhibit G.

VI. PROJECT MANAGEMENT
All work will be performed in accordance with federal and California laws, regulations, and standards.

A. FHWA
The Federal Highway Administration (FHWA) has overall responsibility for the Federal-Aid Highway Program (FAHP), including ultimate responsibility for ensuring financial integrity and compliance with applicable federal laws and regulations. Agency representatives will provide strategic oversight, administer federal funds, determine Locally Preferred Alternative (LPA) compliance with the Uniform Act, and serve as the lead agency for the National Environmental Protection Act (NEPA), delegated to Caltrans for administration.

B. Caltrans
FHWA has delegated major federal-aid implementation authority to Caltrans. Caltrans will interpret federal and state laws, rules, and regulations, serve as the lead agency for the California Environmental Quality Act (CEQA), exercise its delegated responsibility for NEPA, and ensure compliance with all applicable Caltrans standards, manuals, and requirements.

Caltrans approved the Project’s PSR-PDS in September 2023, addressing the scope, schedule, cost, and future maintenance needs to ensure that the Project is implemented in a timely manner and achieves program goals. It will review and act on design exception requests on interstate facilities and act as liaison to FHWA regarding federal funding allocations, R/W and utility relocation process monitoring, engineering decisions, including approval of deviation from design standards. The Department will attend Project Executive Steering Committee (ESC) and Technical Advisory Committee (TAC) meetings.

C. Transportation Authority of Marin (TAM)
TAM entered into a Cooperative Agreement with Caltrans for the Project Initiation Report phase of the project, designating it as a Sponsor of the work. The parties executed a second Cooperative Agreement for the Environmental phase (Appendix Exhibit I). TAM will be responsible for:

1. Securing and administering the financial resources for the Project through the PAED phase

2. Securing a consultant team needed to complete the PAED phase of the project

3. Organizing and supporting the Project Development Team (PDT), ESC, TAC, Ad Hoc, and Board of Commissioners

4. Proposing Project Goals and Scope

5. Reviewing relevant studies (See Exhibit A)

6. Producing initial engineering analyses, mapping, constructability reviews, and life cycle cost analyses

7. Developing a set of Preliminary Design Alternatives with cost estimates and risk assessments

8. Establishing and controlling the Project schedule (Current schedule shown in Exhibit F) 5 9. Managing public engagement and Project communication (Committee descriptions are in Section VII)

10. Obtaining necessary approvals to proceed into the Design phase As an initial element of the Project planning process, TAM investigated a range of nine preliminary alternative alignments to identify tradeoffs and opportunities so that the preferred solution selected would best reflect overall transportation system benefits, regional and community goals, community and environmental values, and mitigate for unavoidable adverse effects. In December 2021, the TAM Board approved the narrowing of alternatives from nine to four to include in the Project Initiation Document (PID). In March 2024, three alternatives were selected (two from the PSR-PDS and an additional new alternative) to advance into the Environmental phase (See Exhibit B). Upon circulation of the draft environmental document (DED), TAM and Caltrans will review the comments received from the public and the partnering agencies (including the City of San Rafael's comments on the DED) on the DED. TAM and Caltrans will select the preferred alternative based on the input received. The decision on a preferred alternative is anticipated to be in 2027.

D. City of San Rafael
San Rafael is an incorporated city within the Project area. It retains all existing decision authority for local land use, transportation infrastructure, and quality of life matters within its jurisdiction relative to the Project, except for Project elements within the State Highway System right-of-way.

The City provided a list of concerns and Guiding Principles (see Appendix B) and designated representatives to serve on the Project Ad Hoc Committee, Executive Steering Committee, and Technical Advisory Committee (TAC). One or more community representatives serve on the Community Working Group. The City will provide input on the alternatives through their participation on the TAC and Project Ad Hoc Committee, and as a member of the TAM Board of Commissioners.

The City will be responsible for providing timely information related to specific local concerns, comprehensive planning concepts, alternatives prioritization, project design, non-standard design risks and benefits, environmental studies, and public communication. Representatives will identify local issues to be addressed at the earliest opportunity and seek to resolve differences among the Parties as provided for in this MOU.

VII. PROJECT ENGAGEMENT
This Project will require ample two-way communication between TAM and elected local government officials, public agencies’ staff, and community groups, with special effort to support participation by people of color and low mobility groups. Each party to this MOU will make good faith efforts to participate in the following types of meetings to facilitate Project engagement:

A. Executive Steering Committee (ESC)
• Members: Executive staff from local agencies, including TAM, City of San Rafael, City of Larkspur, County of Marin, Caltrans, CCTA, and MTC/BATA • Function: Provide input on project challenges and solutions from agency perspectives and serve as a forum for developing consensus recommendations to the TAM Board and associated elected bodies regarding the project alternatives.
• Meeting Frequency: as needed; non-public meetings.
6 B. Ad Hoc Committee (AHC) of the TAM Board
• Members: Three to Four TAM Board members
• Function: Review ESC and Community Working Group (CWG) input on project alternatives, provide input and guidance on project challenges, seek consensus, and report to the entire TAM Board, typically prior to action being taken.
• Meeting Frequency: as needed; non-public meetings.

C. Technical Advisory Committee (TAC)
• Members: TAM staff, public works directors from the City of San Rafael, City of Larkspur, and County of Marin, Caltrans, CCTA, Marin Transit, Golden Gate Bridge Transit District, and a representative from MTC/BATA.
• Function: Build consensus on project alternatives; provide technical guidance to the Project team.
• Meeting Frequency: Monthly; non-public meetings
D. Community Working Group (CWG)
TAM utilized a Stakeholder Working Group (SWG) between June 2020 and May 2021 to gather input on alternatives. At the May 2021 meeting, the SWG provided feedback on alternatives not to carry forward.

A final SWG meeting was held in October 2023 to close out the planning phase of the project with the SWG. During the process, the committee and numerous community organizations expressed concern regarding how the project would address equity. TAM responded with a series of actions focused on the Spanish-speaking community’s ability to actively participate in the decisions to be made.

TAM has organized a Community Working Group (Exhibit H) to provide community input to the project team during the environmental phase. The committee is comprised of volunteers representing diverse interests in the project area, including business, community organizations, neighborhood groups, environmental interests, and commuters.
• Function: Discuss design alternatives and analyses, identify community concerns, and provide feedback to the Project Development Team.
• Meeting Frequency: As needed. Meetings are open to the public with an opportunity for public comment.

VIII. PROJECT COMMUNICATION
Effective communication is an important factor contributing to the success of the Project, and it is the responsibility of everyone involved in the Project. Working in collaboration with parties to this MOU, the TAM Project Manager (PM) will be responsible for managing project-related communications. • TAM will provide timely and accurate Project information to stakeholders. TAM will be responsible for managing a project website, public meetings, and engagement activities, meeting management, documentation, and archiving. Scheduled meetings of local or state government are excluded.
• A Project Communications Plan will be prepared for the PAED phase. 7 • TAM will work with all parties covered under this MOU to develop, produce, and disseminate public messaging at key project milestones. Communication strategies will be based on stakeholder needs and prior feedback.
• All project-related press inquiries other than those directed to elected officials shall be directed to TAM’s PM initially, who will then engage with the appropriate respondent(s).

IX. PROJECT COSTS AND FUNDING
TAM shall be responsible for determining an initial range of Project costs and potential funding sources for all identified Project alternatives. As the Project proceeds through PAED, estimates shall be revised, increased in specificity, compared with available or potential funding sources, and the anticipated fiscal year for construction shall be identified. Estimates will not be used to program or commit Stateprogrammed capital outlay funds.

In 2018, voters approved Regional Measure 3 (RM3), increasing state-owned bridge tolls to fund a range of mobility improvements, including $135M for this Project.

In 2018, Marin County voters approved an extension of Marin County’s ½ cent sales tax measure (Measure AA) to fund a range of transportation improvements. In July 2019, the TAM Board of Commissioners approved the allocation of $16.5M to expedite Project planning activities. TAM intends to use funding from this source to prepare evaluations of any alternatives, consensus building, preliminary engineering, and environmental clearance, leading to the selection of a preferred Project alternative.

X. OTHER AGREEMENTS
Future cooperative agreements between certain parties designating responsibilities for design, construction, operations, maintenance, and cost-sharing will be negotiated separately and on an asneeded basis.

Signatories

Board President Date
Transportation Authority of Marin
Mayor Date
City of San Rafael

APPENDIX
List of Exhibits:

Exhibit A – Relevant Plans/Studies
Exhibit B – PAED Alternatives to be Studied
Exhibit C – Initial Alternatives Studies
Exhibit D – Other Concepts Considered
Exhibit E – Project Study Area Map
Exhibit F – Project Delivery Schedule
Exhibit G – City of San Rafael Guiding Principles
Exhibit H – Community Working Group
Exhibit I – PAED Cooperative Agreement
Exhibit A
Relevant Plans/Studies
Plans and studies to be considered by this Project include, but are not limited to, the following:

1. MTC’s Regional Transportation Plan: Plan Bay Area 2050

2. 2007 Marin Countywide Plan

3. 2021 San Rafael General Plan

4. 2020 Draft City of Larkspur General Plan

5. TAM Final 2019 Congestion Management Program Update

6. TAM 2018 Measure A-A Expenditure Plan

7. MTC 2018 RM3 Expenditure Plan

8. RSR Bridge Access Studies

9. 2024 Ten-Year State Highway Operation and Protection Program Plan (SHOPP)

10. SMART 2014 Downtown San Rafael to Larkspur Extension Environmental Assessment

11. MCTD 2020 – 2029 Short Range Transit Plan

12. 2017 Towards an Active California” The State Bicycle and Pedestrian Plan

13. 2017 Larkspur Bicycle and Pedestrian Master Plan

14. 2018 San Rafael Bicycle and Pedestrian Master Plan

15. 2018 Marin County Unincorporated Area Bicycle and Pedestrian Master Plan

16. 2017 Bay Area Clean Air Plan and State Implementation Plan

17. 2017 BayWAVE Sea Level Rise Vulnerability Assessment

18. 2018 Resilient by Design: Elevate San Rafael

19. BAAQMD Communities Air Risk Evaluation (CARE)

20. 2022 Canal Neighborhood Community-Based Transportation Plan

21. TAM’s CTP 2050

22. Future Canal Area Priority Development Area (PDA) Plan

EXHIBIT B
PAED Alternatives to be Studied
US-101/I-580 Multi-Modal and Local Access Improvement Project 9 Alternative 1 (Option A: Roundabouts)
Est Cost: $20M - $50M*
*In 2030 dollars
US-101/I-580 Multi-Modal and Local Access Improvement Project 10 Alternative 1 (Option B: Signalized Intersections)
Est Cost: $20M - $50M*
*In 2030 dollars
US-101/I-580 Multi-Modal and Local Access Improvement Project 12 Alternative 2 (Includes Alternative 1)
Vertical scale is exaggerated 10:1
Est Cost:
$225 - $290M*
*In 2030 dollars
Est Cost:
$225M -
$290M*
*In 2030 dollars
US-101/I-580 Multi-Modal and Local Access Improvement Project 15 Alternative 3 (Includes Alternative 1)
Est Cost:
$200M -
$260M*
*In 2030 dollars

EXHIBIT C
Alternatives Initially Studied
The project team developed nine preliminary alternative alignments for a Connector, ranging in cost from $114 million to $379 million with varying impacts and right of way needs. Following are brief descriptions of the nine alternatives considered. Note, these Alternative numbers differ from alternatives moving forward in PAED as shown in Exhibit B as the alternatives were renumbered for the environmental phase.

Alternatives 1A and 1B – Hillside Alternatives – 50 mph design speed. These alternatives exit U.S. 101 at the top of Cal Park Hill, run along the hillside above I-580, and connect to I-580 near the Richmond-San Rafael Bridge. The two hillside alternatives are considered “freeway speed” options and would allow vehicles to maintain speeds of 50+ miles per hour on the connector. They are the most expensive alignments to construct ($292 to $379 million) and would require extensive cuts of the hillside, the construction of large retaining walls, and the purchase of private open space above Andersen Drive.

Alternative 2 – Simms Street – 45 mph design speed. This alternative exits U.S. 101 midway down the bridge structure between the top of Cal Park Hill and the Bellam Boulevard off-ramp. A new bridge structure (the connector) would cross Andersen Drive and generally follow the alignment of Simms Street before touching down to connect to I-580. This alternative would require the purchase of several properties along Simms Street.

Alternatives 3A, 3B and Modified 3B – Low Speed – 35 mph design speed. These alternatives are the lowest cost and are all in the general vicinity of the existing Bellam interchange with slightly different lane configurations. These are considered “low speed” alternatives because the curve radius would only allow speeds of 30-35 miles per hour through the connector. Purchase of a few properties behind the Marin Square shopping center would be required. Alternative 3B redirects the SB U.S. 101 to EB I-580 Bellam Boulevard off-ramp traffic to the SB U.S. 101 Andersen Drive exit.

Due to concerns expressed by the community about the closing and redirection of Bellam Boulevard traffic, Modified Alternative 3B was developed to add a new Bellam Boulevard off-ramp bridge structure directly from EB I-580.

Alternative 4 – Swing Out – 35 mph design speed. This alternative would use existing public right of way to connect the two freeways on a large bridge structure that exits U.S. 101 midway down the Cal Park hill, crosses U.S. 101 and “swings out” to the west of U.S. 101 to connect to I-580 near the Bellam Boulevard on-ramp. It also redirects the SB US 101 to EB I-580 Bellam Boulevard off-ramp traffic to the SB U.S. 101 Andersen Drive exit. This alternative utilizes existing public right of way.

Alternative 5 – Medium Speed – 40 mph design speed. This alternative would exit U.S. 101 midway down the bridge structure between the top of Cal Park Hill and the Bellam Boulevard off-ramp. A new bridge structure (the connector) would cross Andersen Drive and cross over Marin Square before touching down to connect to I-580; the location of this alternative would very likely impact Marin Square businesses.

Alternative 6 – Andersen – Mid-Way – 45 mph design speed. This alternative would exit U.S. 101 midway down the bridge structure between the top of Cal Park Hill and the Bellam Boulevard off- ramp. A new bridge structure (the connector) would cross Jacoby Street, Andersen Drive and cross over the Golden Gate Bridge Highway & Transportation District (GGBHTD) bus yard before touching down to connect to I-580. This alternative would impact some businesses and require agreements between Caltrans and GGBHTD. The structure height would be around 60 feet where it crosses Andersen Drive.

EXHIBIT D
Other Concepts Considered
Prior to the start of the preliminary planning phase and development of the PSR-PDS, TAM looked at other connector alignments, including options in Larkspur which were not considered viable primarily due to geometric feasibility, environmental impacts due to proximity of the bay, and project cost. After SWG members and others asked why they were not being considered as viable alternatives, the TAM team revisited the Larkspur options and presented the information to the various project committees with the same conclusion; the Larkspur options are not feasible, and/or do not meet the primary goal of the connector project to separate regional and local traffic.

These concepts will be noted in the PSR-PDS as considered but not viable. Brief descriptions of these options are noted below:

Improvements to Sir Francis Drake Boulevard (SFD) – Several concepts were looked at: widen both directions of SFD, widen EB only, and an elevated structure above SFD. Both widening concepts had very limited room to widen SFD west of Larkspur Landing East (add a third lane) without significant impacts to existing infrastructure, Ferry terminal parking and the Bay. Signals along SFD would continue to be a bottleneck. It would not provide congestion relief on NB US 101 without implementing changes to the NB U.S. 101 SFD off-ramp and other improvements south of the interchange (elements of previous Greenbrae Project). This concept does not meet the project goal as it does not separate regional traffic from local traffic. In addition, a new interchange would be necessary at SFD and Andersen Drive. The elevated structure is unlikely to be supported or approved by the San Francisco Bay Conservation & Development Commission (BCDC) and would have significant environmental and visual impacts to the waterfront.

Top of the Ridge – This concept would be a direct connector that would exit from NB U.S. 101 just north of the SFD NB U.S. 101 on-ramp and run along the top of the hillside. This concept would introduce a weaving issue with the SFD NB U.S. 101 on-ramp and require “braiding” of the two ramps. It would be challenging to obtain Caltrans approval for this concept with the short weaving distance of the two ramps. There would be significant environmental impacts including large cuts into the hillside and large (up to 100’ tall) retaining walls and would be very costly.

TAM has previously funded improvements to SFD including extending the EB merge lane and synchronizing signals along SFD that have improved traffic conditions along this corridor. There are no other improvements that can be made to SFD without significant impacts and cost. Drivers will still have an option to use SFD to access I-580 even with the building of a new connector in the vicinity of east San Rafael, this access will not be closed.

EXHIBIT E
Project Study Area Map

EXHBIT F
Project Delivery Schedule
January 2025
US-101/I-580 Multi-Modal and Local Access Improvement Project Overall Project Timeline

EXHIBIT G
City of San Rafael Guiding Principles
At the July 6, 2021 City Council meeting, the City of San Rafael adopted the following Guiding Principles for the project:
1 City of San Rafael
Draft Guiding Principles for the Northbound US-101 to Eastbound I-580 Direct Connector Revised July 15, 2021
The San Rafael City Council has endorsed the following Guiding Principles for the Director Connector project. A more detailed description of each is included as an Attachment.

The Connector project should follow these seven guiding principles:

1. Reduce travel delays and increase transportation choices for all travelers

2. Support future economic investment and development

3. Improve safety

4. Fit in with the local setting and be aesthetically pleasing

5. Minimize impacts on the environment

6. Design for the future—not the past

7. Build the project in an efficient, timely way
The purpose of these seven principles is to express the City of San Rafael’s vision for how a direct connector can benefit our community. The City recognizes that the connector is a regional project, intended to provide regional benefits. However, the project also presents opportunities for local benefits and should provide such benefits to offset local impacts. The City encourages TAM to consider these opportunities as it develops alternatives and selects a preferred alternative. The project should provide a net benefit for the City of San Rafael as well as Marin County and the Bay Area as a whole.

The attached detail elaborates on how a direct connector can benefit San Rafael. For each principle, the text identifies expected regional outcomes and desired local outcomes. The discussion is not intended to provide commentary or direction on any one alternative. Likewise, the principles are not intended as measurable evaluation criteria, or a ranking of priorities. Rather they express values that are important to San Rafael. Any future alternative(s) should be generally consistent with and not preclude achievement of these principles.
2 Attachment – Additional information on each of the seven Guiding Principles

1. The Connector project should reduce travel delays and increase transportation choices for all travelers.

Regional: Reduce travel time and delays for motorists transitioning from northbound 101 to eastbound 580.

Local: (a) Improve traffic flow on Bellam Boulevard and other local streets in and around the interchange
(b) Improve local pedestrian and bicycle access on surface streets around the interchange and establish better connections between the Canal and Downtown.
(c) Maintain the capacity of Sir Francis Drake Boulevard as a thoroughfare connecting US 101 and I-580.

2. The Connector project should support future economic investment and development.

Regional: Support the economic vitality of the Bay Area, including anticipated job growth, commute patterns, and commercial goods movement.

Local: (a) Improve visibility and access to businesses in Southeast San Rafael, including access improvements for customers, employers, and suppliers.
(b) Minimize the direct displacement of businesses resulting from the project, as well as indirect impacts resulting from construction or changes to local streets and driveways.

3. The Connector project should improve the safety of all travelers.

Regional: Reduce collision hazards and improve sight lines for vehicles using the interchanges
Local: (a) Reduce collision hazards on surface streets in the project vicinity. (b) Improve pedestrian and bicycle safety along Bellam Boulevard and cross-streets.

4. The Connector project should fit in with its setting and be aesthetically pleasing.

Regional: Blend in with the Marin County/North Bay context.

Local: (a) Consider the height and bulk with associated flyover ramps, viaducts, and other project components.
(b) Minimize loss of open space, large-scale tree removal, and grading scars.
(c) Provide for streetscape improvements on local streets affected by the project.
3 5. The Connector project should minimize impacts on the environment.

Regional: Improve regional air and water quality and support statewide greenhouse gas reduction goals.

Local: (a) Consider social equity including environmental issues: Minimize the noise, air quality, and other environmental impacts of the project on nearby San Rafael neighborhoods and businesses.
(b) Evaluate localized air quality impacts as part of environmental review and avoid impacts that may affect the health and wellness of residents in the project vicinity.

6. Design for the future—not the past.

Regional: Consider the long-term effects of the COVID-19 pandemic on travel and commuting patterns, and plan for future changes in technology, vehicle design, and regional conditions.

Local: (a) Select alternatives that do not preclude future improvements to ingress or egress to/from Southeast San Rafael neighborhoods, including a future westbound 580 to southbound 101 connector. (b) Consider long-term impacts related to sea level rise adaptation planning.

7. Build the project in an efficient, timely way.

Regional: Balance the relative costs of each alternative against the improvements to travel time, and traffic volumes, it provides. Coordinate the project with other efforts to enhance conditions on the I-580 and US-101 Corridors, including the Richmond-San Rafael Bridge.

Local: (a) Minimize the need for additional right-of-way in San Rafael. (b) Provide an inclusive planning process that engages San Rafael businesses and residents who use the interchange, including nonEnglish speaking residents. (c) Provide travel demand data demonstrating the need to locate the project at the selected alternative.

EXHIBIT H
Community Working Group
Interest Area Member Organization Alternate
Bike & Pedestrian Marin County Warren Wells Marin County Bicycle Coalition Tarrell Kullaway Bike & Pedestrian San Rafael Philip R. Mooney San Rafael Bike/Ped Advisory Committee Barry Bergman Business East San Rafael Stephanie Plante East San Rafael Working Group Business Larkspur Jim Rosenfield Country Mart, Larkspur Landing Elaine Lin Business Larkspur Richard Atwood Larkspur
Business San Rafael Karen Strolia San Rafael Chamber of Commerce Community East San Rafael Dave Bonfilio Baypoint Lagoons HOA Community East San Rafael Omar Carrera Canal Alliance
Community East San Rafael Esmeralda Garcia Multicultural Center of Marin Community East San Rafael Michele Barni Point San Quentin Village HOA Community East San Rafael Alex Vollmer Spinnaker Point HOA Community Marin County Jon Horinek College of Marin
Community Marin County Kevin Hagerty League of Women Voters Community San Rafael Jim Draper Federation of San Rafael Neighborhoods Richard Bernstein Community San Rafael Dave Pedroli San Rafael City Schools Commuter San Rafael-East Bay Air Gallegos East Bay-San Rafael Commuter Southern Marin-East Bay Scott Gillespie Point Richmond-Sausalito Environmental Marin County Kate Powers Marin Conservation League Environmental San Rafael Greg Brockbank Sustainable San Rafael Wendy Kallins Transit Rider Golden Gate Transit Dave Troup Rides GGT through project area Community Working Group

COOPERATIVE AGREEMENT
Agreement 04-2863
Project No. 0420000030
EA2AAI0

0.J-MRN-101/580-101 8.3/10.0
. . October 11 2023 This AGREEMENT, executed on and effective from ' , 1s ------------- between the State of California, acting through its Department of Transportation, referred to as CAL TRANS, and:

Transportation Authority of Marin, a public corporation/entity, referred to hereinafter as TAM.

An individual signatory agency in this AGREEMENT is referred to as a PARTY. Collectively, the signatory agencies in this AGREEMENT are referred to as PARTIES.

RECITALS
l. PARTIES are authorized to enter into a cooperative agreement for improvements to the State Highway System per the California Streets and Highways Code, Sections 114 and 130.

2. For the purpose of this AGREEMENT, implementing multi-modal and local access improvements by constructing operational improvements on local streets {including bike and pedestrian enhancements) and by separating local and regional traffic with a direct connector from NB 101 to EB 580, and developing the conceptual geometrics of the Westbound 1-580 to Southbound US 101 direct connector as a not-to-preclude future project will be referred to hereinafter as PROJECT. The PROJECT scope of work is defined in the project initiation and approval documents (e.g., Project Study Report, Design Engineering Evaluation Report, or Project Report).

3. All obligations and responsibilities assigned in this AGREEMENT to complete the following PROJECT COMPONENT will be referred to hereinafter as WORK:
• PROJECT APPROVAL AND ENVIRONMENTAL DOCUMENT (PA&ED)
Each PROJECT COMPONENT is defined in the CALTRANS Workplan Standards Guide as a distinct group of activities/products in the project planning and development process.

Project Development Agreement 2017-02-17,JQA (Created June 16, 2023) 1 of 19 Agreement 04-2863
Project No. 0420000030

4. The term AGREEMENT, as used herein, includes this document and any attachments, exhibits, and amendments.

This AGREEMENT is separate from and does not modify or replace any other cooperative agreement or memorandum of understanding between the PARTIES regarding the PROJECT.

PARTIES intend this AGREEMENT to be their final expression that supersedes any oral understanding or writings pertaining to the WORK. The requirements of this AGREEMENT will preside over any conflicting requirements in any documents that are made an express part of this AGREEMENT.

If any provisions in this AGREEMENT are found by a court of competent jurisdiction to be, or are in fact, illegal, inoperative, or unenforceable, those provisions do not render any or all other AGREEMENT provisions invalid, inoperative, or unenforceable, and those provisions will be automatically severed from this AGREEMENT.

Except as otherwise provided in the AGREEMENT, PARTIES will execute a written amendment if there are any changes to the terms of this AGREEMENT.

PARTIES agree to sign a CLOSURE STATEMENT to tenninate this AGREEMENT.

However, all indemnification, document retention, audit, claims, environmental commitment, legal challenge, maintenance and ownership articles will remain in effect until tenninated or modified in writing by mutual agreement or expire by the statute of limitations.

5. The following work associated with this PROJECT has been completed or is in progress:
• TAM completed the Project Initiation Document on September 7, 2023(Cooperative Agreement No. 04-2760).

6. In this AGREEMENT capitalized words represent defined tenns, initialisms, or acronyms.

7. PARTIES hereby set forth the tenns, covenants, and conditions of this AGREEMENT.

RESPONSIBILITIES
Sponsorship

8. A SPONSOR is responsible for establishing the scope of the PROJECT and securing the financial resources to fund the WORK. A SPONSOR is responsible for securing additional funds when necessary or implementing PROJECT changes to ensure the WORK can be completed with the funds committed in this AGREEMENT.

PROJECT changes, as described in the CAL TRANS Project Development Procedures Manual, will be approved by CALTRANS as the owner/operator of the State Highway System.

Project De\"elopment Agreement 2017-02-17/JQA (Created June 16, 2023) 2 of 19 Agreement 04-2863
Projec1 No. 0420000030

9. TAM is the SPONSOR for the WORK in this AGREEMENT.

Implementing Agency

10. The IMPLEMENTING AGENCY is the PARTY responsible for managing the scope, cost, schedule, and quality of the work activities and products of a PROJECT COMPONENT. • TAM is the Project Approval and Environmental Document (PA&ED) IMPLEMENTING AGENCY.

PA&ED includes the completion of the Final Environmental Document and the Project Report (documenting the project alternative selection).

11. TAM will provide a Quality Management Plan (QMP) for the WORK in every PROJECT COMPONENT that they are the IMPLEMENTING AGENCY of. The QMP describes the IMPLEMENTING AGENCY's quality policy and how it will be used. The QMP will include a process for resolving disputes between the PARTIES at the team level. The QMP is subject to CALTRANS review and concurrence.

12. Any PAR TY responsible for completing WORK will make its personnel and consultants that prepare WORK available to help resolve WORK-related problems and changes for the entire duration of the PROJECT including PROJECT work that may occur under separate agreements.

Funding

13. The WORK does not use funds administered by CAL TRANS. PARTIES will amend this AGREEMENT should this condition change.

14. Each PARTY is responsible for the costs they incur in performing the WORK.

CALTRANS' Quality Management

15. CAL TRANS, as the owner/operator of the State Highway System (SHS), will perform quality management work including Quality Management Assessment (QMA), environmental document quality control, and owner/operator approvals for the portions of WORK within the existing and proposed SHS right-of-way.

16. CALTRANS' Quality Management Assessment (QMA) efforts are to ensure that TAM's quality assurance results in WORK that is in accordance with the applicable standards and the PROJECT's quality management plan (QMP). QMA does not include any efforts necessary to develop or deliver WORK or any validation by verifying or rechecking WORK.

Project 0.:velopment Agreement 2017-02- I 7/IQA (Created June 16, 2023) 3 of 19 Agreement 04-2863
Project No. 0420000030
When CALTRANS performs QMA, it does so for its own benefit. No one can assign liability to CAL TRANS due to its QMA.

17. CALTRANS, as the owner/operator of the State Highway System, will approve WORK products in accordance with CALTRANS policies and guidance and as indicated in this AGREEMENT.

18. Per National Environmental Policy Act (NEPA) assignment and California Environmental Quality Act (CEQA) statutes, CALTRANS will perform environmental document quality control and NEPA assignment review procedures for environmental documentation.

CAL TRANS quality control and quality assurance procedures for all environmental documents are described in Chapter 38 of the Standard Environmental Reference (SER}, available at https://dot.ca.gov/programs/environmental-analysis/standard-envirorunental-referenceser/volume-l-guidance-for-compliance/ch-38-nepa-assignrnent. This also includes the independent judgement analysis and determination under CEQA that the environmental documentation meets CEQA requirements.

19. TAM will provide WORK-related products and supporting documentation upon CAL TRANS' request for the purpose of CAL TRANS' quality management work.

20. TAM, including any employee, agent, consultant or sub-consultant retained by the TAM, shall implement uniform document control policies necessary to retain all records and electronically stored information associated with the WORK, including but not limited to those records identified in California Public Resources Code, Section 21167.6, and including email and attachments, in a manner consistent with the CALTRANS Uniform Filing System and the "Final Caltrans Environmental Records Retention Policy", available at https:/fdot.ca.gov/- /media/dot-media/programs/environmental-analysis/documents/ser/nepa-recordretentionpolicy-final-al ly.pdf. These records, along with an index of the records, shall be provided to CAL TRANS within 60 days of CAL TRANS' written request.

21. The cost ofCALTRANS' quality management work is to be borne by CALTRANS.

CEOA/NEPA Lead Agency

22. CAL TRANS is the CEQA Lead Agency for the PROJECT.

23. CAL TRANS is the NEPA Lead Agency for the PROJECT.

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Environmental Permits. Approvals and Agreements

24. TAM will comply with the commitments and conditions set forth in the environmental documentation, environmental permits, approvals, and applicable agreements as those commitments and conditions apply to TAM's responsibilities in this AGREEMENT.

25. Unless otherwise assigned in this AGREEMENT, the IMPLEMENTING AGENCY for a PROJECT COMPONENT is responsible for all PROJECT COMPONENT WORK associated with coordinating, obtaining, implementing, renewing, and amending the PROJECT permits, agreements, and approvals whether they are identified in the planned project scope of work or become necessary in the course of completing the PROJECT.

26. It is expected that the PROJECT requires the following environmental permits/approvals:

ENVIRONMENT AL PERMITS/REQUIREMENTS
USFWS Section 7 Consultation
404, US Army Corps of Engineers
401, Regional Water Quality Control Board
1602 California Department offish and Wildlife
Project Approval and Environmental Document (PA&ED)

27. As the PA&ED IMPLEMENTING AGENCY, TAM is responsible for all PA&ED WORK except those activities and responsibilities that are assigned to another PARTY and those activities that are excluded under this AGREEMENT.

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28. CAL TRANS will be responsible for completing the following PA&ED activities:

CALTRANS Work Breakdown Structure Identifier (If Applicable) 100.10.1 0.xx Quality Management
165 .15 .15 .xx Essential Fish Habitat Consultation
165.15.15.xx Section 7 Consultation
165.25.25 Approval to Circulate Resolution
175.20 Project Preferred Alternative
180.10.05.05.xx CEQA Lead Final Env. Doc QA/QC and Approval 180.10.05.45 Section 7 Consultation
180.15.10 Notice of Determination (CEQA)

29. Any PARTY preparing environmental documentation, including studies and reports, will ensure that qualified personnel remain available to help resolve environmental issues and perform any necessary work to ensure that the PROJECT remains in environmental compliance.

30. TAM will provide written notice of the initiation of environmental studies to the CEQA and NEPA Lead Agencies prior to completing any other P A&ED phase work.

California Environmental Quality Act (CEQA)

31. Environmental documentation will be prepared in compliance with the California Public Resources Code§§ 21080.3.l(d)(e). CALTRANS will provide, and TAM will use, a letter template and a list of California Native American tribes requesting notification. TAM will prepare consultation documentation for CAL TRANS' signature and transmittal in compliance with the statutorily required time frames.

32. The CEQA Lead Agency will determine the type of CEQA documentation and will cause that documentation to be prepared in accordance with CEQA requirements.

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33. Any PARTY involved in the preparation of CEQA documentation will prepare the documentation to meet CEQA requirements and follow the CEQA Lead Agency's standards that apply to the CEQA process.

34. Any PARTY preparing any portion of the CEQA documentation, including any studies and reports, will submit that portion of the documentation to the CEQA Lead Agency for review, comment, and approval at appropriate stages of development prior to public availability.

35. TAM will submit CEQA-related public notices to CAL TRANS for review, comment, and approval prior to publication and circulation.

36. TAM will submit all CEQA-related public meeting materials to the CEQA Lead Agency for review, comment, and approval at least ten (10) working days prior to the public meeting date.

If the CEQA Lead Agency makes any changes to the materials, then the CEQA Lead Agency will allow TAM to review, comment, and concur on those changes at least three (3) working days prior to the public meeting date. The CEQA Lead Agency has final approval authority over all CEQA documentation.

37. The CEQA Lead Agency will attend all CEQA-related public meetings.

38. If a PARTY who is not the CEQA Lead Agency holds a public meeting about the PROJECT, that PAR TY must clearly state its role in the PROJECT and the identity of the CEQA Lead Agency on all meeting publications. All meeting publications must also inform the attendees that public comments collected at the meetings are not part of the CEQA public review process.

That PARTY will submit all meeting advertisements, agendas, exhibits, handouts, and materials to the CEQA Lead Agency for review, comment, and approval at least ten (IO) working days prior to publication or use. If that PARTY makes any changes to the materials, it will allow the CEQA Lead Agency to review, comment on, and approve those changes at least three (3) working days prior to the public meeting date.

The CEQA Lead Agency maintains final editorial control with respect to text or graphics that could lead to public confusion over CEQA-related roles and responsibilities.

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National Environmental Policy Act (NEPA)

39. Pursuant to Chapter 3 of Title 23, United States Code, Sections 326 and 327, CALTRANS is the NEPA Lead Agency for the PROJECT. CAL TRANS is responsible for NEPA compliance, will determine the type of NEPA documentation, and will cause that documentation to be prepared in accordance with NEPA requirements.

CAL TRANS, as the NEPA Lead Agency for PROJECT, is responsible for 1he review, comment, and approval of all environmental documentation (including, but not limited to, studies, reports, public notices, and public meeting materials, determinations, administrative drafts, and final environmental documents) at appropriate stages of development prior to approval and public availability.

When required as NEPA Lead Agency, CALTRANS will conduct consultation and coordination and obtain, renew, or amend approvals pursuant to the Federal Endangered Species Act, and Essential Fish Habitat.

When required as NEPA Lead Agency, CALTRANS will conduct consultation and coordination approvals pursuant to Section 106 of the National Historic Preservation Act.

40. Any PARTY involved in the preparation of NEPA documentation will follow FHWA and CAL TRANS standards that apply to the NEPA process including, but not limited to, the guidance provided in the FHW A Environmental Toolkit (available at http://environment.tbwa.dot.gov/index.asp) and the CALTRANS Standard Environmental Reference.

41. Any PARTY preparing any portion of the NEPA documentation (including, but not limited to, studies, reports, public notices, and public meeting materials, determinations, administrative drafts, and final environmental documents) will submit that portion of the docmnentation to CALTRANS for CALTRANS' review, comment, and approval prior to public availability.

42. TAM wiJl prepare, publicize, and circulate all NEPA-related public notices, except Federal Register notices. TAM will submit all notices to CALTRANS for CALTRANS' review, comment, and approval prior to publication and circulation.

CAL TRANS will work with the appropriate federal agency to publish notices in the Federal Register.

43. The NEPA Lead Agency will attend all NEPA-related public meetings.

44. TAM will submit all NEPA-related public meeting materials to CALTRANS for CALTRANS' review, comment, and approval at least ten (10) working days prior to the public meeting date.

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45. If a PARTY who is not the NEPA Lead Agency holds a public meeting about the PROJECT, that PARTY must clearly state its role in the PROJECT and the identity of the NEPA Lead Agency on all meeting publications. All meeting publications must also inform the attendees that public comments collected at the meetings are not part of the NEPA public review process.

That PAR TY will submit all meeting advertisements, agendas, exhibits, handouts, and materials to the NEPA Lead Agency for review, comment, and approval at least ten ( l 0) working days prior to publication or use. If that PARTY makes any changes to the materials, it will allow the NEPA Lead Agency to review, comment on, and approve those changes at least three (3) working days prior to the public meeting date.

The NEPA Lead Agency has final approval authority with respect to text or graphics that could lead to public confusion over NEPA-related roles and responsibilities.

46. TAM will ensure that the PROJECT is included in the approved Federal Statewide Transportation Improvement Program (FSTIP) prior to the NEPA Lead Agency's approval of the environmental document.

Schedule

47. PARTIES will manage the WORK schedule to ensure the timely use of committed funds and to ensure compliance with any environmental permits, right-of-way agreements, construction contracts, and any other commitments. PARTIES wi11 communicate schedule risks or changes as soon as they are identified and will actively manage and mitigate schedule risks.

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Standards
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48. PARTIES will perform all WORK in accordance with federal and California laws, regulations, and standards; Federal Highway Administration (FHW A) standards; and CAL TRANS standards. CALTRANS standards include, but are not limited to, the guidance provided in the:
• CADD Users' Manual
• CAL TRANS policies and directives
• Plans Preparation Manual
• Project Development Procedures Manual (PDPM)
• Workplan Standards Guide
• Standard Environmental Reference
• Highway Design Manual
• Encroachment Permit Manual
Qualifications

49. Each PARTY will ensure that personnel participating in WORK are appropriately qualified or licensed to perform the tasks assigned to them.

Encroachment Permits

50. CALTRANS will issue, upon proper application, the encroachment permits required for WORK within State Highway System (SHS) right-of-way. TAM, their contractors, consultants, agents, and utility owners will not work within the SHS right-of-way without an encroachment permit which specifically allows them to do so. CALTRANS will provide encroachment permits to TAM at no cost. CAL TRANS will provide encroachment permits to utility owners at no cost. If the encroachment permit and this AGREEMENT conflict, the requirements of this AGREEMENT will prevail.

51. The IMPLEMENTING AGENCY for a PROJECT COMPONENT will coordinate, prepare, obtain, implement, renew, and amend any encroachment permits needed to complete the WORK.

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Protected Resources

52. If any PARTY discovers unanticipated cultural, archaeological, paleontological, or other protected resources during WORK, all WORK in that area will stop and that PARTY will notify all PARTIES within 24 hours of discovery. WORK may only resume after a qualified professional has evaluated the nature and significance of the discovery and CALTRANS approves a plan for its removal or protection.

Disclosures

53. PARTIES will hold all administrative drafts and administrative final reports, studies, materials, and documentation relied upon, produced, created, or utilized for the WORK in confidence to the extent permitted by law and where applicable, the provisions of California Government Code, Section 7921.505(c)(5) will protect the confidentiality of such documents in the event that said documents are shared between PARTIES.

PAR TIES wi 11 not distribute, release, or share said documents with anyone other than employees, agents, and consultants who require access to complete the WORK without the written consent of the PAR TY authorized to release them, unless required or authorized to do so by law.

54. If a PARTY receives a public records request pertaining to the WORK, that PARTY will notify PARTIES within five (5) working days ofreceipt and make PARTIES aware of any disclosed public records.

Hazardous Materials

55. HM-I is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law, irrespective of whether it is disturbed by the PROJECT or not.

HM-2 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law only if disturbed by the PROJECT.

The management activities related to HM-1 and HM-2, including and without limitation, any necessary manifest requirements and disposal facility designations are referred to herein as HM-I MANAGEMENT and HM-2 MANAGEMENT respectively.

56. lf HM-1 or HM-2 is found the discovering PARTY will immediately notify all other PARTIES.

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57. CALTRANS, independent of the PROJECT, is responsible for any HM-1 found within the existing State Highway System right-of-way. CALTRANS will undertake, or cause to be undertaken, HM-I MANAGEMENT with minimum impact to the PROJECT schedule.

CALTRANS, independent of the PROJECT will pay, or cause to be paid, the cost ofHM-1 MANAGEMENT related to HM-I found within the existing State Highway System right-ofway.

58. IfHM-1 is found within the PROJECT limits and outside the existing State Highway System right-of-way, responsibility for such HM-1 rests with the owner(s) of the parcel(s) on which the HM-1 is found. TAM, in concert with the local agency having land use jurisdiction, will ensure that HM- 1 MANAGEMENT is undertaken with minimum impact to PROJECT schedule.

The cost ofHM-1 MANAGEMENT for HM-1 found within the PROJECT limits and outside the existing State Highway System right-of-way will be the responsibility of the owner(s) of the parcel(s) where the HM-I is located.

59. The CONSTRUCTION IMPLEMENTING AGENCY is responsible for HM-2 MANAGEMENT within the PROJECT limits.

TAM and CAL TRANS will comply with the Soil Management Agreement for Aerially Deposited Lead Contaminated Soils (Soil Management Agreement) executed between CALTRANS and the California Department of Toxic Substances Control (DISC). Under Section 3.2 of the Soil Management Agreement, CAL TRANS and TAM each retain joint and severable liability for noncompliance with the provisions of the Soil Management Agreement.

TAM will assume all responsibilities assigned to CALTRANS in the Soil Management Agreement during PROJECT COMPONENTS for which they are the IMPLEMENTING AGENCY except for final placement and burial of soil within the State right-of-way, per Section 4.5 of the Soil Management Agreement, which is subject to CALTRANS concurrence and reporting to DISC which will be performed by CAL TRANS.

60. CALTRANS' acquisition or acceptance of title to any property on which any HM-I orHM-2 is found will proceed in accordance with CAL TRANS' policy on such acquisition.

Claims

61. TAM may accept, reject, compromise, settle, or litigate claims of any consultants or contractors hired to complete WORK without concurrence from the other PARTY.

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62. PARTIES will confer on any claim that may affect the WORK or PARTIES' liability or responsibility under this AGREEMENT in order to retain resolution possibilities for potential future claims. No PARTY will prejudice the rights of another PARTY until after PARTIES confer on the claim.

63. If the WORK expends state or federal funds, each PARTY will comply with the Federal Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards of 2 CFR, Part 200. PARTIES will ensure that any for-profit consultant hired to participate in the WORK will comply with the requirements in 48 CFR, Chapter 1, Part 3 I.

When state or federal funds are expended on the WORK these principles and requirements apply to all funding types included in this AGREEMENT.

64. If the WORK expends state or federal funds, each PARTY will undergo an annual audit in accordance with the Single Audit Act in the Federal Unifonn Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards as defined in 2 CFR, Part 200.

65. When a PARTY reimburses a consultant for WORK with state or federal funds, the procurement of the consultant and the consultant overhead costs will be in accordance with the Local Assistance Procedures Manual, Chapter 10.

Interruption of Work

66. If WORK stops for any reason, IMPLEMENTING AGENCY will place the PROJECT rightof-way in a safe and operable condition acceptable to CALTRANS.

67. If WORK stops for any reason, each PARTY will continue with environmental commitments included in the environmental documentation, permits, agreements, or approvals that are in effect at the time that WORK stops, and will keep the PROJECT in environmental compliance until WORK resumes.

Penalties. Judgements and Settlements

68. The cost of awards, judgements, fines, interest, penalties, attorney's fees, and/or settlements generated by the WORK are considered WORK costs.

69. The cost of legal challenges to the environmental process or documentation are considered WORK costs.

70. Any PARTY whose action or lack of action causes the levy of fines, interest, or penalties will indemnify and hold all other PARTIES harmless per the tenns of this AGREEMENT.

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71. TAM will furnish CALTRANS with the Project History Files related to the PROJECT facilities on State Highway System within sixty (60) days following the completion of each PROJECT COMPONENT. TAM will assure that the Project History File is prepared and submitted in compliance with the Project Development Procedures Manual, Chapter 7. All material will be submitted neatly in a three-ring binder and in PDF format.

GENERAL CONDITIONS

72. All portions of this AGREEMENT, including the Recitals Section, are enforceable.

73. PARTIES understand that this AGREEMENT is in accordance with and governed by the Constitution and laws of the State of California. This AGREEMENT will be enforceable in the State of California. Any PARTY initiating legal action arising from this AGREEMENT will file and maintain that legal action in the Superior Court of the county in which the CAL TRANS district office that is signatory to this AGREEMENT resides, or in the Superior Court of the county in which the PROJECT is physically located.

Exemptions

74. All CALTRANS' obligations and commitments under this AGREEMENT are subject to the appropriation of resources by the Legislature, the State Budget Act authority, programming and allocation of funds by the California Transportation Commission (CIC).

Indemnification

75. Neither CAL TRANS nor any of its officers and employees, are responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by TAM, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon TAM under this AGREEMENT. It is understood and agreed that TAM, to the extent permitted by law, will defend, indemnify, and save harmless CAL TRANS and all of their officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by TAM, its contractors, sub-contractors, and/or its agents under this AGREEMENT.

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76. Neither TAM nor any of its officers and employees, are responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by CAL TRANS, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon CAL TRANS under this AGREEMENT. It is understood and agreed that CALTRANS, to the extent permitted by law, will defend, indemnify, and save harmless TAM and all of their officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under this AGREEMENT.

N on:0arties

77. PARTIES do not intend this AGREEMENT to create a third party beneficiary or define duties, obligations, or rights for entities not signatory to this AGREEMENT. PARTIES do not intend this AGREEMENT to affect their legal liability by imposing any standard of care for fulfilling the WORK different from the standards imposed by law.

78. PARTIES will not assign or attempt to assign obligations to entities not signatory to this AGREEMENT without an amendment to this AGREEMENT.

Ambiguity and Performance

79. Neither PARTY will interpret any ambiguity contained in this AGREEMENT against the other PARTY. PARTIES waive the provisions of California Civil Code, Section 1654.

A waiver of a PARTY's performance under this AGREEMENT will not constitute a continuous waiver of any other provision.

80. A delay or omission to exercise a right or power due to a default does not negate the use of that right or power in the future when deemed necessary.

Defaults
8 1. If any PARTY defaults in its performance of the WORK, a non-defaulting PARTY will request in writing that the default be remedied within thirty (30) calendar days. If the defaulting PARTY fails to do so, the non-defaulting PARTY may initiate dispute resolution.

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Dispute Resolution

82. PARTIES will first attempt to resolve AGREEMENT disputes at the PROJECT team level as described in the Quality Management Plan. If they cannot resolve the dispute themselves, the CAL TRANS District Director and the Executive Officer of TAM will attempt to negotiate a resolution. If PARTIES do not reach a resolution, PARTIES' legal counsel will initiate mediation. PAR TIES agree to participate in mediation in good faith and will share equally in its costs.

Neither the dispute nor the mediation process relieves PARTIES from full and timely performance of the WORK in accordance with the tenns of this AGREEMENT. However, if any PARTY stops fulfilling its obligations, any other PARTY may seek equitable relief to ensure that the WORK continues.

Except for equitable relief, no PARTY may file a civil complaint until after mediation, or forty-five ( 45) calendar days after filing the written mediation request, whichever occurs first.

PARTIES will file any civil complaints in the Superior Court of the county in which the CALTRANS District Office signatory to this AGREEMENT resides or in the Superior Court of the county in which the PROJECT is physically located.

83. PAR TIES maintain the ability to pursue alternative or additional dispute remedies if a previously selected remedy does not achieve resolution.

Prevailing Wage

84. When WORK falls within the Labor Code§ l 720(a)(l) definition of "public works" in that it is construction, alteration, demolition, installation, or repair; or maintenance work under Labor Code § 1 771, PAR TIES will conform to the provisions of Labor Code § § I 720-l 8 I 5, and all applicable provisions of California Code of Regulations, Title 8, Division I, Chapter 8, Subchapter 3, Articles l-7. PARTIES will include prevailing wage requirements in contracts for public work and require contractors to include the same prevailing wage requirements in all subcontracts.

Work performed by a PARTY's own employees is exempt from the Labor Code's Prevailing Wage requirements.

If WORK is paid for, in whole or part, with federal funds and is of the type of work subject to federal prevailing wage requirements, PARTIES will conform to the provisions of the DavisBacon and Related Acts, 40 U.S.C. §§ 3141-3148.

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When applicable, PARTIES will include federal prevailing wage requirements in contracts for public works. WORK performed by a PARTY's employees is exempt from federal prevailing wage requirements.

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CALTRANS
Ronald Sangalang, Project Manager
111 Grand Avenue
Oakland, CA 94612
Office Phone: (510) 407-9476
Email: [email protected]

TRANSPORTATION A UTHORJTY OF MARIN
Dan Cherrier, Principal PD Manager
900 5th Street, Suite 100
San Rafael, CA 9490 l
Office Phone: (415) 226-0829
Email: [email protected]
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SIGNATURES
PARTIES are authorized to enter into this AGREEMENT and have delegated to the undersigned the authority to execute this AGREEMENT on behalf of the respective agencies and hereby covenants to have followed all the necessary legal requirements to validly execute this AGREEMENT. By signing below, the PARTIES each expressly agree to execute this AGREEMENT electronically.

The PARTIES acknowledge that executed copies of this AGREEMENT may be exchanged by facsimile or email, and that such copies shall be deemed to be effective as originals.

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
Robert Effinger
Acting Deputy District Director, Design
Verification of funds and authority:

Jeffrey Kuehnel
District Budget Manager
Project Developmenl Agreement 20 l 7-02-17'1QA (Created June 16, 2023)

TRANSPORTATION AUTHORITY OF
MARIN
Anne Richman
Executive Director
Attest:

A <P· , Dan Ch• ni•r {Sep 29, 202313:37 POl)
Dan Cherier
Director of Project Delivery
19 of I 9
City of San Rafael
Proclamation supporting
“Shop San Rafael”
WHEREAS, the City of San Rafael celebrates our local small businesses as they are essential contributors to the economic health of the City of San Rafael; and WHEREAS, according to the United States Small Business Administration, there are 36.2 million small businesses in the United States in 2025, which account for nearly 46% of private sector employment; and
WHEREAS, local businesses are more likely to hire locally and retain employees during economic downturns, which contributes to stable employment and community resilience, especially in cities like San Rafael, where small businesses make up a significant portion of the economy; and
WHEREAS, according to the American Independent Business Alliance, approximately 50 out of every 100 dollars spent when shopping with locally owned businesses remains in San Rafael, and studies show that locally owned businesses recirculate 2–4 times more money in the local economy than chain stores or online retailers; and WHEREAS, shopping with small businesses in San Rafael helps to enhance local character, stimulate entrepreneurship, enhance community wellbeing, strengthen local decision making, reduce environmental impact, and create local jobs; and WHEREAS the City of San Rafael appreciates the community’s willingness to Go Local by shopping and dining in San Rafael, especially during our busy holiday season, to help keep our tax dollars local; and
Now, therefore, I, Kate Colin, Mayor of San Rafael, California, hereby proclaim the City of San Rafael’s support for
Shop San Rafael
And urge the residents of our community to support San Rafael’s small businesses and merchants during the holiday season, expressing sincere appreciation for the contributions of all local businesses within the City of San Rafael.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of San Rafael to be affixed this 17th day of November, in the year two thousand and twenty-five.

_____________________
Kate Colin
Mayor
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 5.a
Meeting Date: November 17, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Attorney’s Office
Prepared by: Rob Epstein, City Attorney
Andrea Visveshwara, Chief Assistant City
Attorney
City Manager Approval: ______________
TOPIC: RALPH M. BROWN ACT (GOVERNMENT CODE SECTION 54950, ET SEQ.)

COMPLIANCE
SUBJECT: RESOLUTION RESPONDING TO A CEASE AND DESIST DEMAND DATED NOVEMBER 3, 2025 WITH AN UNCONDITIONAL PROMISE –WITHOUT ADMITTING

ANY VIOLATION OF THE BROWN ACT-- TO CEASE AND DESIST CERTAIN CONDUCT PURSUANT TO GOVERNMENT CODE SECTION 54650.2(c)
RECOMMENDATION:

Adopt the above-referenced resolution responding to a cease and desist demand dated November 3, 2025 with an unconditional promise -- without admitting any violation of the Brown Act -- to cease and desist certain conduct pursuant to Government Code Section 54650.2(c) BACKGROUND:

On November 3, 2025, several City officials received a letter from attorney Paul Nicholas Boylan on behalf of Ken Dickinson and an ad hoc citizens organization calling itself “Marin Citizens for Solutions No Secrecy”, collectively referred to as “Mr. Boylan’s Clients”. (Attachment 1.) Mr. Boylan’s request touches on both public record act and Ralph M. Brown Act (Gov. Code sec. 94650, et seq.) (“Brown Act”) issues.

Mr. Boylan’s letter requests both specific records and general types of records related to the City’s announcement regarding its proposed acquisition of the property located at 350 Merrydale (“Property”).

As described in further detail in the staff report to Public Hearing Agenda Item. 6.a, the City is Council is considering the acquisition of the Property to use as an interim shelter followed by permanent affordable housing. Mr. Boylan’s letter has been forwarded to the City Clerk’s Office for processing, and per the City Clerk’s practice, the City will make responsive records available on a rolling basis, and will make the responses to other public records act requests related to the Property available to the public. In addition, the City Attorney’s Office has instructed that the City retain all City records related to the City’s proposed acquisition of the Property. As for the Brown Act, Mr. Boylan’s Clients allege that the City committed violation(s) by discussing and purportedly acting “upon its plan to build shelter on the site in closed session.” They further request that the City “formally rescind all prior decisions and acts connected to the Project that took place outside of a public meeting” and that the City “issue an unconditional promise SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
to cease and desist violating the [Brown] Act…through the process described in Government Code Section 54960.2.”
.

ANALYSIS:

The district attorney or any interested person may file a lawsuit for the “purpose of stopping or preventing violations or threatened violations of this chapter by members of the legislative body of a local agency or to determine the applicability of this chapter to ongoing actions or threatened future actions of the legislative body, or to determine the applicability of this chapter to past actions of the legislative body, subject to Section 54960.2…” The district attorney or any interested person may seek a judicial determination that an action taken by a legislative body of a local agency in violation of the Brown Act is null and void. Prior to doing so, the district attorney or the interested person must make a written demand on the legislative body to cure or correct the alleged Brown Act violation. The legislative body then has 30 days to either cure or correct the violation or decline to take action, and once informed of the legislative body’s decision on the written demand, the district attorney or the interested person then has 15 days to file a lawsuit.

An action to cure or correct a past Brown Act violation does not necessarily preclude or prohibit the district attorney or interested person from filing a lawsuit for a determination that the Brown Act applied to past conduct of the legislative body, and from seeking a court order that requires closed session meetings to be recorded for judicial oversight of Brown Act compliance. Mr. Boylan’s Clients have also requested that the City issue an unconditional promise to cease and desist violating the Brown Act, as provided for in Government Code Section 54960.2. To issue an unconditional promise, the City must address the written demand as prescribed by acknowledging receipt of the cease and desist demand and the allegations in the letter, and then commit that it will cease and desist from, and not repeat the challenged past action as described in the written demand. The City may rescind that unconditional promise at a later City Council meeting after providing written notice of its intent to rescind such unconditional promise.

Adoption of the unconditional promise pursuant to Section 54960.2 enables the City to avoid unnecessary litigation without admitting any violation of the Brown Act.

As evidenced by the Public Hearing item on the same agenda, the City Council has taken no action related to the acquisition of the Property. The City Council has met in closed session as allowed by Government Code Section 54856.8 to provide direction to its real property negotiators over the price and terms of the purchase of the Property.

Nonetheless, the City Attorney’s Office acknowledges that members of the public, including Mr.

Dickinson, have expressed their perception that certain City communications over the past few weeks related to the proposed acquisition of the Property are inconsistent with the City’s commitment to transparency and community engagement. Accordingly, the City Attorney recommends that the City Council adopt the proposed attached resolution to confirm the City’s unconditional promise to refrain from violating the Brown Act. Adoption of the proposed resolution will reiterate and confirm the City’s commitment to transparency and community engagement. Specifically, the proposed resolution calls for the City to acknowledge that Mr. Boylan alleges that there was: “no agenda item [that] informed the public that the City Council would discuss and possibly approve the property’s purchase, and no one associated with the City agreed to explain why the City wanted to purchase the Property”, and that such alleged past action of the City Council violates the Ralph M. Brown Act, and that – without admitting any violation of the Brown Act -- the City agrees to cease and desist such activity in the future.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
FISCAL IMPACT:

No fiscal impact.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt a resolution.

2. Decline to adopt the resolution.

RECOMMENDED ACTION:

Adopt the above-referenced resolution responding to a cease and desist demand dated November 3, 2025 with an unconditional promise to cease and desist certain conduct pursuant to Government Code Section 54650.2(c)
ATTACHMENTS:

1. Letter dated November 3, 2025, from Mr. Boylan

2. Proposed Resolution
Paul Nicholas Boylan, Esq.

November 3, 2025

VIA EMAIL
520 Broadway #200
Santa Monica, CA 90401
Phone: 530 400 1653
Fax: 877 400 1693
Email: [email protected]
([email protected]; [email protected]; [email protected]; [email protected]; [email protected]; citymanager@cityofsam·afael.org)
The City of San Rafael
The City of San Rafael City Council
1400 Fifth Ave,
San Rafael, CA 94901
RE: Citizens for Solutions not Secrecy v. City of San Rafael, et al.

Cure/Correct, Cease/Desist Demand and Records Request
Dear City of San Rafael City Council:

I am an attorney with a practice that includes providing counsel to public agencies and private citizens - and represented them in litigation, w1its and appeals - pe1taining to the California's Public Records Act ("CPRA") and the open meetings statute commonly refened to as the Brown Act (the "Act").

I am writing to you on behalf of Ken Dickinson, and on behalf of the members of an ad hoc citizens organization that calls itself Marin Citizens for Solutions not Secrecy (refened to collectively in this letter as my "clients," "Marin Citizens" or "we"). Concerned Citizens retained me because they believe that my efforts on their behalf are necessaiy to protect, enforce, and remedy conupt governmental decision-making that has violated and continues to violate their rights - and the rights of all California citizens - to pa1ticipate in ai1d observe the City of San Rafael and the County of Marin (referred to in this letter respective as the "City" and as the "County")'s make public policy and decisions that require the expenditure of public funds.

Citizens for Solutions not Secrecy v. City of San Rafael, et al – Brown Act/Public Records November 3, 2025

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FACTUAL BACKGROUND:

For quite some time, agendas for City Council meetings have included closed session items that informed the public the City intended to purchase property described as “350 Merrydale Road / 3833 Redwood Highway, San Rafael APNs 179-041-27 & 179-041-28 (referred to in this letter as the “Property”).

Prior to these closed session agenda items, no City agenda item informed the public that the City Council would discuss and possibly approve the property’s purchase, and no one associated with the City agreed to explain why the City wanted to purchase the Property.

When members of the public asked City and County officials why the property was being purchased, all City and County officials said it could not be discussed because of “closedsession confidentiality.” On March 17, 2025, the Marin Independent Journal published a news article with the headline “San Rafael eyes Terra Linda property for purchase.” The article stated that neither Mayor Kate Colin nor city officials would comment on the city’s reason for seeking the property. The article went on to state:
“The city and the mayor’s statement is that there was a noticed closed session regarding the property address, [City Manager] Alilovich said. ‘Under the Brown Act, the city is forbidden from disclosing any information about what was discussed during the closed session…’”
Seven months later, on October 15, 2025:
• The City conducted a well-attended press conference for the purpose of announcing a City project to construct temporary shelter on the Property to shelter homeless people (the “Project”). The press conference was attended by many local dignitaries, including the City’s mayor, who lead the press conference and spoke at length favorably about the Project. Two other City Council members attended. • The City posted on the City’s webpage announcing the “350 Merrydale Project.” • The City posted a FAQ (frequently asked questions) page. • The Marin Independent Journal published a lengthy editorial promoting the Project.

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On October 16, 2025:
• The Marin Independent Journal published a news article with the headline “San Rafael Marin County to Provide Small Dwellings for Homeless.” • The Marin Independent Journal published a second article stating “[The City of] San Rafael and Marin County will create a village of 65 tiny homes on a Terra Linda property to address homelessness, officials said Wednesday… city officials have agreed to develop the 2.3-acre property into an affordable housing complex with a minimum of 80 apartments…”
• The City announced that a community meeting about the “350 Merrydale Interim Shelter Project” was scheduled for October 28, 2025.

On October 17, 2025, a member of the County Board of Supervisors contacted a member of the public who had previously asked about the City/County’s plans for the Property, but met a wall of silence. The Supervisor apologized for not being free to talk about the Project sooner, and stated “I wasn't able to share information publicly until the project became official…”
The foregoing facts demonstrate that the City and County agreed to the Project, took steps to make it happen, and hid it all from the public through the pretense of closed session confidentiality – which simply doesn’t apply to keep secret decisions to construct temporary shelter followed by permanent housing.

When concerned citizens protested the City and County’s lack of transparency and inclusion that shut them out of the decision-making process, the City responded with a pattern of behavior that demonstrates the City has no intention of correcting its mistakes.

The City refused to meet with concerned citizens and, instead, rolled out a public relations campaign designed to create the illusion of participation.

On October 28, 2025:
• The City conducted a webinar that was nothing like the “town hall meeting” the City advertised would take place. Attendees could not speak or interact with each other, and could not see who else was viewing the webinar. Attendees were invited to submit questions, which City officials looked through and “cherry picked” the ones they wanted to answer in order to further promote the Project.

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• One of the questions that was read asked why this particular piece of property was chosen for the Project. A City official answered that it was chosen because it is near to other homeless services. But this is not true. There are no homeless services walking distance from the Property.
• One of the questions submitted that Webinar presenters read was a request for a list of the 20 cites for temporary homeless shelter that the City considered in addition to the Property. A City official and Webinar presenter responded:
“We have a list of these sites that we’ll be able to post on our website as part of our FAQ rather than reading through the list right now and we'll have that up for everyone later this week”.

As of the date of this letter, the public has not been provided access to the list. • Some of those observing the Webinar requested copies of all questions submitted.

The City refused to comply with this request.

Increasingly frustrated by the lack of any meaningful response from the City, members of the public demanded a meeting with the City. City officials agreed to this request, scheduling November 6th to meet. However, as public concern increased, the City unilaterally changed the structure of the November 6th meeting from a face-to-face meeting to a “informational display” where concerned members of the public could move from booth to booth to get information from City staff and other persons connected to the Project.

After public pressure, the City Mayor assured concerned citizens that all members of the City Council would be attending the informational display, providing assurance that the Project involved only temporary housing, and further assuring:
“Of course, any permanent housing project would go through the public planning and review process, including opportunities for input from the community and the City Council. It would be treated similarly to any other proposed development project in the city.”
What the Mayor apparently fails to appreciate is that there is no temporary shelter/tiny house exemption to the Brown Act. The City must use the same public process for temporary housing/shelter as it does for permanent housing/shelter.

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That did not happen. Make no mistake: what the City failed to do is not a trivial error. The failure to comply with the Brown Act violated Concerned Citizens’ constitutional rights of free speech and petition. Concerned Citizens protest the City and County’s decision, and all acts taken to effectuate the decision to provide shelter – even if labeled as “temporary” - to the homeless on property the City has referred to as “the 350 Merrydale Shelter Project.” We further demand that the City push the “reset” button, and conduct the process transparently with a full opportunity for the public to observe and participate before any decisions are made and/or actions taken.

The importance of aiding the homeless is not the issue. The need is apparent to everyone, and is growing every day. More has to be done. And, for these reasons, providing shelter for the homeless is a topic that inspires extreme public interest.

The goal is proper. The desire cannot be contested. But the devil is always in the details.

The issues of how best to address the needs of the homeless – such as where best to provide shelter, the proximity of shelter to other programs that provide services to the homeless, the criteria that will be used to select recipients of the planning shelter (will formerly housed San Rafael residents have priority, or will anyone be permitted to travel to San Rafael from other places and receive shelter), and the issue of providing excellent services at the lowest reasonable cost so that public dollars needed to satisfy many concerns are not wasted – are all complex topics that require robust public discussion, the free-flow of records and information, and open debate.

The California constitution expressly recognizes the public’s right to participate in the decisions all California public agencies make and the right to be present to observe that process. This protects the public from “back room” decisions made in secret – which is the foundation of democracy as it is practiced in California.

The City and County have decided to build shelter for the homeless on a specific piece of property without allowing the public to both participate in those decisions or observe the decision-making process before those decisions were made. This violated the public’s rights to participate in those decisions and observe the decision making process.

Instead of transparency that would have allowed all concerned to address both the City Council and the County Board of Supervisors and to engage in the necessary, if not mandatory, public debate on all issues that assures wise decision-making, the City and County decided to make those decisions for the people in secret, and then announce their decisions through a carefully planned public relations campaign designed to prevent public Citizens for Solutions not Secrecy v. City of San Rafael, et al – Brown Act/Public Records November 3, 2025

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debate, and chill the rights of free speech guaranteed by the California constitution and the California Open Meetings law, commonly called “the Brown Act.” It doesn’t matter if the secret decisions the City and County made were acts taken on behalf of the public to promote the greater good. It doesn’t matter that the decisions were intending to advance a greater good. What matters is that it was all done in secret, behind closed doors, excluding the public, with the intent of setting the preferred narrative by preventing public debate until the project plan was completed.

In California the ends achieved by public agencies – like cities and counties – do not justify the means. The means by which public agencies make decisions are strictly regulated by statutes that were designed to protect the public’s right to both know what an agency might decide to do before the agency makes that decision, and the right to participate in the decision before it is done.

The end the City clearly intended on achieving is providing additional shelter to the homeless. We recognize that is a noble goal. However, the way to adopt that goal as policy, and to make decisions to achieve that goal is specifically describe in California’s Open Meetings law, more commonly referred to as the Act.

BROWN ACT VIOLATIONS:

The primary decision to build temporary shelter – and all decisions associated with that primary decision - violated Brown Act mandates that all local agencies must follow, including but not limited to:
• failing to publish meeting agendas that provide the public with notice at least 72 hours (for regular meetings) and 24 hours (for special meetings) prior to any discussion and decision on an agendized item (Government Code §§ 54954 and 54955:
• failing to follow the process of conducting an open meeting, as provided in Government code § 54953(a);
• failing to providing the public with the opportunity to comment as required by Government Code §§ 54954.3;
• failing to provide the public with the opportunity to record meetings where the public’s business was conducted (Government Code § 54953.3); and Citizens for Solutions not Secrecy v. City of San Rafael, et al – Brown Act/Public Records November 3, 2025

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• conducting a series of unlawful secret meetings with the purpose of avoiding the public’s attendance, participation, and oversight (Government Code §§ 54952.2 and 54959.) 1
Your violations of the Act involved many City Council decisions made in secret.

It is clear that the City discussed and acted upon its plan to build shelter on the site in closed session. We know this because both City and County officials said so when asked why they weren’t willing to explain how the City and County planned on using the Property.

CURE AND CORRECT DEMAND:

Per Government Code § 54960.1, we demand, on our own behalf, and on behalf of the public, that the District cure and correct the City’s failure to comply with the Act as described herein. Failure to effectively cure and correct will result in an order voiding any decisions made or actions taken that violated the Brown Act.

Each Brown Act violation a public agency commits is unique, and every cure and correct effort is shaped to address the circumstances of each particular unlawful act. In this case, the City and County’s violations are unusually robust, taking place over time and involving many acts that were authorized/ordered in secret, manifesting a well thought out scheme to disenfranchise the public from important constitutional rights. To be effective, the City’s cure/correct must be robust enough to cure the depth and scope of the City’s secret decisions and acts.

The City must first formally rescind all prior decisions and acts connected to the Project that took place outside of a public meeting. There is no administrative regulation, no statute, no appellate opinion, that allows a quorum of a public agency’s legislative body to decide to build shelters for the homeless - temporary or permanent - and then make decisions needed to enact that decision, anywhere other than during an open public meeting 1 Government Code § 54959 declares that it is a crime if any member of a legislative body who attends a meeting of that legislative body where an action is taken in violation of any provision of the Brown Act, and where the member intends to deprive the public of information to which the member knows or has reason to know the public is entitled to. Neither I nor my clients intend on instigating, or will instigate, any administrative or criminal prosecution of any kind against any member of the City Council. Section 54959 is brought to the City’s attention only to demonstrate the importance of the rights the Brown Act protects, and the seriousness of the legislature in enacting the Brown Act.

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– and only after the discussion and potential action are placed on an agenda that is then distributed to the public.

In rare circumstances some decisions are allows to be made in closed session – for example, discussions with attorneys about litigation and with real estate negotiators But the decision to enter into negotiations to purchase property and the decision to build homeless shelters aren’t the kinds of decisions that are allowed to be made in closed session. These kinds of decisions must be made in public after providing the public, with notice and an opportunity to comment to the City Counsel, and an opportunity to watch the discussion and vote.

After the City rescinds its past decisions and actions that violated the Brown Act – without any admission of wrongdoing – then the process can begin where an informed public is fully involved in the decision making process that it was denied due to the City’s unlawful secret decisions and actions as described in this letter.

CEASE AND DESIST DEMAND: Concerned Citizens
Per Government Code §§ 54960 and 54960.2, Concerned Citizens demand, on their behalf, and on behalf of the people of the state of California, that the City issue an unconditional promise to cease and desist violating the Act, as described herein, through the process described in Government Code § 54960.2.

DEMAND TO RECORD CLOSED SESSIONS:

Evidence shows, and discovery will confirm, that the City misused closed session confidentiality as a means to secretly decide to build homeless shelter and to secretly discuss the plan to do so. This flagrant, persistent, shockingly casual, history indicates the strong probability that the City has done it before and is likely to do it again.

Under these circumstances, Government Code § 54960 allows relief via mandamus, injunction, declaratory relief, and orders requiring the City to record their closed sessions.

We demand that the City do so, if for no other reason than to discourage the City from using closed session confidentiality to make decisions and plans based on those decisions in secret, outside of the light of a public meeting.

ANTICIPATED DEFENSE:

I anticipate the possibility that, because the City did not actually meet publicly to authorize City and County staff to take actions to effectuate the Project, that all actions taken were Citizens for Solutions not Secrecy v. City of San Rafael, et al – Brown Act/Public Records November 3, 2025

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ultra vires, and need not be publicly remedied through City/County actions during properly noticed meetings.

There are a number of reasons why this tactic might appear appealing. However, please be on notice that shifting responsibility to staff will not provide the City, the City Council members in their official or personal capacities with any cover for the constitutional and statutory violations committed. Each individual City Counsel occupies a position of utmost trust resulting in the same fiduciary relationship toward the citizens of their community as a trustee bears to their beneficiary, requiring them to act with the utmost honesty, care and good faith. No action to intentionally deprive any citizen of their constitutional rights can be considered as being part of any elected official’s official duties and responsibilities.

Evidence shows, and discovery will confirm, that the unlawful acts described in this letter were committed knowingly by the City Council and publicly approved by a quorum of City Council members. The City Council was present as a quorum at October 15th’s press conference, where the City Mayor excitedly and proudly proclaimed the Project as a decision that the City had made and which was going to happen. The two other Council members didn’t speak, but were visibly supporting the Mayor, essentially demonstrating that the decision was made by the City Council to build shelter for the homeless on the Property.

Additionally, the Mayor’s assurance that the entire City Council would be present at November 6th’s informational display, this was an admission that the City Council had made the decision to enact the Project, all smaller decisions associated with the Project, and would be present to support those decisions.

SPOLIATION WARNING:

The Brown Act specifies that a party seeking to enforce their rights under the Act must allow the culpable public agency to cure and correct the violation before the aggrieved party files a lawsuit to enforce the Act. Because there is an inherent foreseeability of litigation between the parties if the City fails to cure and correct its many Brown Act violations. Consequently, we demand that the City put in place a “litigation hold” to preserve all records pertaining to the Project – including but not limited to physical records that are not maintained in an electronic format and records maintained in an electronic format (e.g., memoranda, letters, emails and text messages). To enact a litigation hold, the City must do what is necessary to avoid the intentional or accidental loss or destruction of records pertaining to the Project by taking all steps necessary to preserve all such records/information. Such steps include immediately (1) disabling all electronic "records retention" deletion protocols that could result in the deletion of electronic records, (2) make server backups, and (3) make "snapshots" of electronic records and information that could Citizens for Solutions not Secrecy v. City of San Rafael, et al – Brown Act/Public Records November 3, 2025

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be deleted or destroyed. There are, of course, serious consequences for failing to preserve records under the circumstances the parties find themselves within.

RECORDS REQUEST:

We do not want to ask a judge to decide these issues. We are hoping the City agrees to engage in a transparent and public interactive process – to be negotiated by the parties – that will provide the transparency and access to information necessary to allow Concerned Citizens to come up to speed on everything associated with the project.

It is a common truism that the right of free speech means nothing if the person attempting to exercise that right doesn’t know what they are talking about. For this reason, we request access to and copies of all records associated with the Project, including but not limited to all memoranda, contracts, emails and text messages.

We anticipate that the City complain that we are requesting a large number of records and that it will take time to collect them all together. We mean no disrespect, but we are not receptive to such a complaint. If the City had been transparent throughout the process of making all of the decisions associated with the Project, and followed the open government procedures clearly described in the Brown Act, then there would have been time for all interested persons to request records relevant to the particular decisions that were might be made in order to provide informed comment. If that had happened, there would be no burden now to collect and disclose records.

Only when all records requested have been disclosed and time is allowed for Concerned Citizens to review them can this process continue. To soften the burden and avoid delay, we insist that the City produce records on a “rolling” basis. This means that, instead of waiting until all records are collected to disclose them, the City should disclose records as they are located and processed.

We also suggest that the City post all records produced in response to this records request on a webpage that all interested persons can access and review. This disclosure will serve the cause of transparency and empower the public discussion and debate that must happen before the City Council takes any action pertaining to the question of placing temporary homeless shelter on the Property.

Finally, all records requests contain within them the possibility of litigation if the public agency holding the requested public records fails to provide the public with access to those records. This provides an additional need for a litigation hold, as described above.

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CONCLUSION:

This morning the Marin Independent published an article characterizing Concerned Citizens’ growing frustration as “indignation.” It isn’t indignation. It is rising anger at being methodically and unlawfully locked out of the decision making process.

Concerned Citizens are justifiably concerned that the City believes it can use PR tactics like press conferences to foster fast and favorable public sentiment in favor of the Project to convince the public that Concerned Citizens are heartless and that it is acceptable for the City to deprive Concerned Citizens of their free speech and petition rights if it achieves a noble goal.

I have reassured my client that they need not worry about such tactics working. First, in my experience representing news media outlets, the press is not that easily manipulated. More importantly, I am willing to bet that there isn’t a person who lives in Marin County who doesn’t realize that, if Concerned Citizens’ rights of free speech and petition can be violated, then it opens the door for it to happen to anyone.

We are not against sheltering the homeless. We just want to know if the Project – created and planned in secrecy - is the best use of public dollars and if the Project will effectively address the needs of our homeless community.

At this moment in time, it appears there are better options. The Merrydale property is far from the sources of other services the homeless need. It will take a very long time to provide temporary shelter, and Winter is here.

On the other hand, the City, and the County, already own many properties that are vacant and can be adapted faster and cheaper to provide temporary shelter than the Merrydale property. And these properties are walking distance to resources the homeless want and need. The Merrydale property is not.

All of this leads to an obvious, but very important, question: why spend enormous amounts of public money to purchase the Merrydale property when the City already owns property, already paid for, that could meet the needs for temporary shelter faster, cheaper, and better than any that could be provided on the Merrydale property? Could it be that the vacant properties the City and County own are worth more than the Merrydale property? If so, it is a poor reason to buy property. We should use what we have instead of buying something we don’t need.

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The people of our City and County want and deserve a public, transparent process that addresses these and many, many other questions that must be considered before a decision is made.

We look forward to your response. Please contact me if you wish to open up a dialogue with the intent to settle this dispute amicably.

Sincerely,
PAUL NICHOLAS BOYLAN, ESQ.

PAUL NICHOLAS BOYLAN
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESPONDING TO A CEASE AND DESISIT DEMAND DATED NOVEMBER 3, 2025 WITH AN UNCONDITIONAL PROMISE –WITHOUT ADMITTING ANY VIOLATION OF THE BROWN ACT -- TO CEASE AND DESIST CERTAIN CONDUCT PURSUANT TO GOVERNMENT CODE SECTION 54650.2(c) WHEREAS, beginning on March 17, 2025, the City Council began meeting in closed session pursuant to Government Code Section 54856.8 to consider the price and terms of payment for the purchase of the property located at 350 Merrydale (APNS 179-041-27 & 179-041-28) (“Property”); and WHEREAS, on November 3, 2025, several City officials received a letter dated November 3, 2025, (the “Letter”) from Paul Nicholas Boylan, an attorney representing Ken Dickinson and an ad hoc citizens organization called “Marin Citizens for Solutions not Secrecy” (collectively referred to as “Mr.

Boylan’s Clients”); and
WHEREAS, Mr. Boylan’s Clients allege that the City committed violation(s) of the Brown Act by discussing and purportedly acting “upon its plan to build shelter on the site in closed session”; and WHEREAS, Mr. Boylan’s Clients further request that the City “formally rescind all prior decisions and acts connected to the Project that took place outside of a public meeting” and that the City “issue an unconditional promise to cease and desist violating the [Brown] Act…through the process described in Government Code Section 54960.2.”; and
WHEREAS, on October 15, 2025, elected officials from the City attended a press conference announcing the City’s consideration to purchase the property located at 350 Merrydale for use as an interim shelter and permanent affordable housing; however, no City Council action was taken at that press conference or at any time prior to or after the press conference; and WHEREAS, on the City Council’s regular November 17, 2025, meeting, after the close of a noticed public hearing where the public will have the opportunity to provide meaningful comments, and after considering all of the written and verbal comments, as well as the staff report and presentations, the City Council will consider a series of actions related to declaring a shelter crisis and the purchase of the Property for use as an interim shelter and permanent affordable housing as outlined in the Staff Report and its attachments for that agenda item, which is incorporated by reference; and WHEREAS, the City Council desires to (1) respond to the letter, (2) issue the unconditional promise requested by Mr. Boylan’s Clients; (3) deny any violation of the Brown Act, and (4) reiterate its commitment to transparency and community engagement with the Public, and .

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES that:

1. The City Council for the City of San Rafael finds that it has ,received Mr. Boylan’s cease and desist letter dated November 3, 2025, on behalf Mr. Boylan’s Clients alleging that: prior to meeting in closed session on March 17, 2025, to discuss the price and terms for the purchase of the Property, there was “no agenda item [that] informed the public that the City Council would discuss and possibly approve the property’s purchase, and no one associated with the City agreed to explain why the City wanted to purchase the Property” and that such aforementioned past action of the City Council purportedly violates the Ralph M. Brown Act.

2. In order to avoid unnecessary litigation and without admitting any violation of the Ralph M. Brown Act, the City Council hereby unconditionally commits, consistent with the prescribed language in Government Code Section 54960.2 that it will cease, desist from, and not repeat the challenged past action as described in Section 1 of this Resolution. To the extent anyone could interpret that there was any City action on October 15, 2025, the City hereby rescinds that action, and any action taken prior to November 16, 2025, excepting the City Planning Commission’s meeting taken on November 4, 2025, at a duly noticed public meeting.

3. The City Council may rescind this commitment only by a majority vote of its membership taken in open session at a regular meeting and noticed on its posted agenda as “Rescission of Brown Act Commitment.” Mr. Boylan, on behalf of Mr. Boylan’s Clients, will be provided with written notice, sent by any means or media Mr. Boylan provides to the City Clerk’s Office, to whatever address or addresses he specifies, of any intention to consider rescinding this commitment at least 30 days before any such regular meeting. In the event that this commitment is rescinded, Mr.

Boylan’s Clients will have the right to commence legal action pursuant to subdivision (a) of Section 54960.2 of the Government Code. That notice will be delivered to Mr. Boylan by the same means as this commitment, or may be mailed to an address that Mr. Boylan has designated in writing.

4. The Mayor of the City of San Rafael is hereby directed to transmit a copy of this resolution to Mr.

Boylan on or before November 30, 2025.

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

____________________
Lindsay Lara, City Clerk
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 6.a
Meeting Date: November 17, 2025

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: John Stefanski, Assistant City
Manager
Greg Minor, Assistant Director
Community & Economic Development
Daniel Cooperman, Community Services
Division Director
City Manager Approval: ______________
TOPIC: DECLARATION OF SHELTER CRISIS AND APPROVAL OF RELATED ACTIONS AND ACQUISITION OF THE PROPERTY LOCATED AT 350 MERRYDALE ROAD (APNS 179-041-27 & 179-041-28) FOR USE AS AN INTERIM SHELTER AND AFFORDABLE

HOUSING
SUBJECT: CITY COUNCIL OF THE CITY OF SAN RAFAEL CONSIDERATION OF:

1. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DECLARING A SHELTER CRISIS PURSUANT TO GOVERNMENT CODE SECTION 8698, ET SEQ; CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: NOT A PROJECT PER CEQA GUIDELINES 15378(b)(2),(4),(5); ALTERNATIVELY EXEMPT PURSUANT TO CEQA GUIDELINE 15061(b)(3) [COMMON SENSE]; 15269(c) [EMERGENCY]

2. AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL

ADOPTING REASONABLE LOCAL STANDARDS AND PROCEDURES FOR HOMELESS SHELTERS PURSUANT TO GOVERNMENT CODE SECTIONS 8698, ET SEQ.; CEQA DETERMINATION: NOT A PROJECT PER GOVERNMENT CODE SECTIONS 65660(b), 65662; CEQA GUIDELINE 15378(b)(2), (4), (5); ALTERNATIVELY EXEMPT PURSUANT TO CEQA GUIDELINES 15061(b)(3) [COMMON SENSE]; 15269(c) [EMERGENCY]

3. AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2

4. A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A

GRANT AGREEMENT BETWEEN THE CITY AND COUNTY OF MARIN IN THE AMOUNT OF $8 MILLION AND AFFORDABLE HOUSING AGREEMENT IN A FORM TO BE APPROVED BY

THE CITY ATTORNEY TO FACILITATE THE ACQUISITION OF REAL PROPERTY LOCATED AT 350 MERRYDALE ROAD (APNS 179-041-27 & 179-041-28) FOR USE AS AN INTERIM

SHELTER AND PERMANENT AFFORDABLE HOUSING AND TO ACCEPT THE FULL AMOUNT OF THE GRANT AND APPROPRIATE $7.0 MILLION TO COVER COSTS RELATED TO ACQUISITION; CEQA DETERMINATION: NOT A PROJECT PER GOVERNMENT CODE SECTIONS 8698.4(a)(4); 65660(b), 65662; PUBLIC RESOURCES CODE SECTION 21080(b)(1) [MINISTERIAL PROJECT]; CEQA GUIDELINE 15268(b) [MINISTERIAL PROJECT]; EXEMPT PURSUANT TO CEQA PUBLIC RESOURCES CODE SECTION 15183 [CONSISTENT WITH GENERAL PLAN POLICIES]; CEQA GUIDELINES 15269(c) [EMERGENCY]; 15332 [INFILL]

5. A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A PURCHASE AND SALE AGREEMENT IN THE AMOUNT OF $6.7 MILLION, PLUS ASSOCIATED COSTS; TO EXECUTE A CERTIFICATE OF ACCEPTANCE AND OTHER

DOCUMENTS NECESSARY TO COMPLETE THE PURCHASE OF THE REAL PROPERTY LOCATED AT 350 MERRYDALE ROAD AND TO EXECUTE A PROFESSIONAL SERVICES

AGREEMENT WITH CORNISH AND CAREY COMMERCIAL (D/B/A NEWMARK) IN AN AMOUNT NOT TO EXCEED $201,000 FOR REAL ESTATE BROKERAGE SERVICES RENDERED TO THE CITY FOR THE CITY’S PURCHASE OF 350 MERRYDALE ROAD (APNS 179-041-27 & 179-041-28); CEQA DETERMINATION: NOT A PROJECT PER GOVERNMENT CODE SECTIONS 8698.4(a)(4); 65660(b), 65662; PUBLIC RESOURCES CODE SECTION 21080(b)(1) [MINISTERIAL PROJECT]; CEQA GUIDELINE 15268(b) [MINISTERIAL PROJECT]; EXEMPT PURSUANT TO CEQA PUBLIC RESOURCES CODE SECTION 15183 [CONSISTENT WITH GENERAL PLAN POLICIES]; CEQA GUIDELINES 15269(c) [EMERGENCY]; 15332 [INFILL]; 15061(b)(3) [COMMON SENSE]; 15378(b)(4) [FISCAL ACTIVITY]
RECOMMENDATION:

Staff recommends that the City Council take the following actions:
 Adopt the above-referenced resolution declaring a shelter crisis in San Rafael pursuant to California Government Code Section 8698, et seq.
 Waive further reading, refer by title only, and adopt the above-referenced urgency ordinance adopting reasonable local standards and procedures for homeless shelters pursuant to Government Code Section 8698, et. seq.
 Introduce, waive further reading and refer by title only to the above referenced ordinance adopting reasonable local standards and procedures for homeless shelters pursuant to Government Code Section 8698, et. seq.
 Adopt the above-referenced resolution authorizing the City Manager to negotiate and execute a Grant Agreement between the City and the County of Marin in the amount of $8 million and an Affordable Housing Agreement in a form to be approved by the City Attorney to facilitate the acquisition of real property located at 350 Merrydale Road (APNs 179-41-27 & 179-041-28) for use as an interim shelter and permanent affordable housing and to accept the full amount of the grant and appropriate $7 million to cover costs related to the acquisition.

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 Adopt a resolution authorizing the City Manager to negotiate and execute a purchase and sale agreement in the amount of $6.7 million, plus associated costs, a certificate of acceptance and other documents necessary to complete the purchase of the real property located at 350 Merrydale Road and to execute a professional services agreement with Cornish and Care Commercial (d/b/a Newmark) in an amount not to exceed $201,000 for real estate brokerage services rendered to the City for the City’s purchase of 350 Merrydale Road APNs 179-41-27 & 179-041-28).

EXECUTIVE SUMMARY:

The City has an opportunity to acquire a 2.5-acre property at 350 Merrydale Road /3833 Redwood Highway (Property) to serve as an interim shelter for up to 65 unhoused individuals on a temporary basis, followed by a permanent affordable housing development of up to 80 units. Implementing an interim shelter program and developing affordable housing will address San Rafael’s shortage of affordable housing and substantial number of unsheltered residents and, in doing so, advance the City’s housing and homelessness goals. This opportunity is a product of a collaboration with the County of Marin, and the property was selected following a multi-year search for a viable location. Accordingly, staff recommends that the City Council declare a shelter crisis in alignment with the new state law and authorize the acquisition of the Property to serve as an interim shelter on a temporary basis, followed by a permanent affordable housing development.

BACKGROUND:

San Rafael’s Housing Landscape
San Rafael and Marin County lack both housing supply and affordable housing. The City’s 2023-2031 Housing Element1, the Marin County Civil Grand Jury’s 2024-2025 report titled “The Worrisome Future of Marin Housing,” and Rooted in Marin, a 2025 analysis of anti-displacement strategies for Marin County, document these unfortunate realities, as well as the negative consequences of insufficient housing opportunities. For instance, the Rooted in Marin report noted that Marin County has the third highest median rental rate in California and the cost of purchasing an average home is more expensive in Marin County than every metropolitan area other than the San Jose Metro Area (Rooted in Marin p.20). As a result, roughly three in five Marin renter households are cost-burdened, meaning they dedicate more than 30 percent of their income on housing (Rooted in Marin p.21).

The high cost of housing in Marin County is largely due to a lack of housing supply, which is the result of a dearth of housing construction in recent decades, as demonstrated in Figure One below. 1 This staff report contains hyperlinks to other documents. The hyperlinked documents are incorporated by reference and may be referenced by clicking on the hyperlink, or alternatively, contacting the City Clerk’s Office for a copy of the referenced document.

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Figure One: Marin County Housing Stock by Tenure and Age (Source: Rooted in Marin p.24)
The lack of new housing stock has led to rising Marin County median housing prices, which increased by over $1 million in the eight-year period between 2013 and 2021, from $966,000 to $1.91 million, a 98 percent increase (The Worrisome Future of Marin Housing, p.9). Over that same period, median household income in Marin County only increased by 45 percent (Id.).

The consequences of a lack of housing supply and affordable housing in Marin County include a sustained population loss since 2018, particularly of low-income households making less than 50 percent of the area median income (AMI). Figure Two displays this outmigration trend of lower-income households with a net migration rate of -33.5 per 1,000 households compared to higher-income households net migration rate of 4.7 per 1,000 households.

Figure Two: Net Migration Rate for Marin County (2010 to 2023) (Source: Rooted in Marin p.14, U.S. Census Bureau, 2023 American Community Survey) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
Marin County’s lack of affordable housing pushes much of the county’s workforce to live outside of Marin County; for example, 64 percent of Marin County workers and 67 percent of San Rafael’s regular fulltime employees live outside of Marin County (Rooted in Marin, p.26). Marin County’s reliance on an external workforce makes it harder for Marin employers to retain employees, increases greenhouse gas emissions, and reduces economic growth from the missed property taxes and consumer spending that would take place if more people could afford to reside in Marin County (Rooted in Marin, p.27 and The Worrisome Future of Marin Housing, p.2 and p.10).

With respect to San Rafael, the City’s 2023-2031 Housing Element, a state-mandated planning document to guide long-term growth and development, identified similar housing challenges to Marin County as a whole. For example, the Housing Element found that San Rafael renters are considerably cost-burdened (spending more than 30 percent of one’s income on housing). As shown in Figure Three, 55 percent of San Rafael renters were cost-burdened, and 21 percent of San Rafael’s renter households were severely cost-burdened (spending more than 50 percent of their income on housing).

Figure Three: Percent of Income Spent on Housing by San Rafael Owners and Renters (Source: 2023-2031 Housing Element p.3-26)
The high cost of housing in San Rafael impacts different demographic groups to different degrees due to income variations across demographic groups. For instance, only one-third of non-Hispanic White households in San Rafael were paying more than 30 percent of their incomes on housing compared to 38 percent for Asian households, 56 percent for Black households, and 60 percent for Latino households (2023-2031 Housing Element p.3-28). Furthermore, nearly 40 percent of the city’s Latino households pay more than half their household incomes on housing costs (Id.). Similarly, overcrowding is also far more prevalent among Latino households than among White households. Data from the 2015-2019 ACS indicates that 50.9 percent of all Latino households in San Rafael experience overcrowded conditions, compared to 1.3 percent among White, non-Hispanic households (2023-2031 Housing Element p.3-30).

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Figure Four: San Rafael Cost Burdened Households by Race and Ethnicity (Source: 2023-2031 Housing Element, p.3-29)
Ultimately, the City’s Housing Element concluded that while San Rafael is the most racially, ethnically, and economically diverse city in Marin County, its income distribution has become less balanced over time, with growing numbers of residents in poverty and growing numbers of high-income households.2 These housing constraints and broader economic pressures continue to exacerbate a housing and homelessness crisis within the City as well as the County and State.

Homeless Point-in-Time Count
Homelessness remains a significant challenge across the United States, and San Rafael is no exception.

According to the U.S. Department of Housing and Urban Development’s 2024 Annual Homelessness Assessment Report (AHAR) to Congress, an estimated 771,480 individuals experienced homelessness during the January 2024 Point-in-Time count, an 18% increase from 2023, representing the largest oneyear rise ever recorded. Among these, approximately 152,585 individuals were identified as chronically homeless, reflecting a continuing upward trend seen in recent years. California alone accounts for 187,084 homeless individuals, with close to 70,000 being chronically homeless, reflecting a 74% rise since 2017. Alarmingly, 66% of California's homeless population was unsheltered, comprising nearly half of all unsheltered homeless individuals nationwide.

Like other jurisdictions in California, homelessness continues to present a significant challenge for our region and community. The 2024 Marin County Point-in-Time Count identified 1,090 individuals experiencing homelessness countywide, with 788 unsheltered. San Rafael had 326 individuals experiencing homelessness, including 264 unsheltered. This represents more than one third of Marin County’s unsheltered population. This same point in time count found that 39 percent of the County’s homeless population stated economic issues as the precipitating cause that led to their homelessness, up from 31 percent in the 2022 count. Of note, 62% of the County’s homeless population resided within Marin County prior to becoming homeless.
2 For example, in 2018, roughly 14 percent of the city’s residents lived below the federal poverty line, up from 10 percent in 2000. Conversely, the percentage of families with household incomes over $200,000 increased from

15.7 percent in 2010 to 27.7 percent in 2018. The data suggests not only a declining “middle class” but a growing number of residents facing social and economic challenges (See Housing Element p.1-2).

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State Guidance Regarding Encampments
In May 2025, Governor Newsom released a model ordinance directing local jurisdictions to take immediate action to abate encampments. While this model ordinance included components included in the City’s existing camping ordinance, it also created significant pressure for the City as well as other jurisdictions to respond swiftly to unsheltered homelessness. While enforcement expectations are rising, the City also recognizes its responsibility to act with compassion. Providing humane, service-oriented alternatives-such as interim shelter, is essential to balancing State directives with the City’s values and housing first principles. By creating safe, structured shelter options, the City can both comply with the State’s call for resolving encampments and ensure that individuals are not displaced without access to shelter and case management.

The City’s Adopted Homelessness and Housing Goals
To address the lack of housing supply and affordable housing in San Rafael, the City has adopted homelessness and housing specific goals, policies, and programs. For example, in June 2025 the San Rafael City Council adopted a Three-Year Strategic Plan for Fiscal Years 2025-2028 that includes Priority Area D: Housing and Homelessness: Facilitate new housing development, assist in ensuring housing stability, support a “Housing First” model, and implement strategies that reduce homelessness.

Furthermore, Strategic Plan Priority Area D includes the following goals and objectives:
• Goal D.1: Collaborate with the County of Marin and other community partners to implement comprehensive strategies that prevent and reduce homelessness. o Objective D.1.1: In collaboration with the County of Marin, explore the implementation of a housing-focused interim shelter program, supported by robust case management services to assist in transitioning unhoused community members into permanent supportive housing, or other permanent housing solutions; and o Objective D.1.4: Strategically increase and secure additional funding sources by leveraging key partnerships that will support additional programs that reduce homelessness; and
• Goal D.2: Advance the development of new housing across all affordability levels to meet the state’s regional housing needs allocation (RHNA) requirements as outlined in the City’s Housing Element, ensuring diverse, sustainable, and equitable housing opportunities for all residents.

Prior to adopting the City’s current Strategic Plan, in 2023, San Rafael adopted its 2023-2031 Housing Element with the overarching purpose of providing housing opportunities across all income levels. The Housing Element’s Housing Action Plan included Goal H-1: Homelessness: End and prevent homelessness in San Rafael as well as Goal H-4: Housing Choice: Meet housing needs through a range of housing choices and affordability levels throughout the city (Housing Element p. 6-2). The Housing Action Plan then identified policies and programs to advance these goals, including:
• Policy H-1.1: Collaboration and Coordination
o Work with the County of Marin, local supportive service providers, and housing and social justice organizations to assist persons experiencing homelessness. • Policy H-1.2: Transitional and Supportive Housing
o Support permanent supportive housing for those who are unhoused or at risk of losing their housing.
• Policy H-1.3: Emergency Shelters
o Allow for emergency shelters in appropriate zoning districts in order to accommodate San Rafael’s unsheltered population.

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• Policy H-4.1: Equitable Distribution of Affordable Housing o Encourage the creation of affordable housing opportunities in all parts of the city, including areas where such housing does not exist today.
• Policy H-4.4: Affordability of Projects on Public Land o Prioritize the development of affordable housing rather than market rate units on surplus public land.
• Policy H-4.14: Commercial to Residential Conversion
o Encourage the adaptive reuse of older commercial buildings, including office and retail buildings, for housing.

Finally, as part of the City’s Equity, Diversity and Inclusion Element, San Rafael’s 2040 General Plan includes Goal EDI-3: Housing Stability: Improve housing stability for all San Rafael residents, particularly those with low or very low incomes.

The City’s Camping Ordinance
In July 2023, the City Council voted to amend the City’s longstanding camping ordinance (San Rafael Municipal Code Chapter 19.50) to regulate camping in a manner that complied with the then-governing Martin v. Boise decision. Shortly after the City adopted its new ordinance amendments, a group of plaintiffs (Shaleeta Boyd, et al.) sued the City in federal court based on Americans with Disabilities Act (ADA) claims and other legal theories, in particular that the City’s camping ordinance constituted a “state created danger”. In response, the court entered a temporary restraining order and, later, a preliminary injunction that effectively blocked the City’s ability to enforce its own local camping regulations.

During the period of the preliminary injunction, the City’s ability to regulate the Mahon Creek Path Area encampment became significantly constrained. However, the City still took action utilizing other regulatory avenues to mitigate the broader public health and safety impacts of the encampment on the surrounding community. For example, in October and November 2023, the City enforced its fire code to abate the fire risks associated with the proliferation of wooden pallets and illegal wooden structures in the Mahon Creek Path Area encampment.

From December 2023 to February 2024, the City attempted in good faith, to implement the Camping Ordinance under the restrictions and direction issued by the Federal District Court. Through this multimonth effort, the City attempted to work with the California Homeless Union and members of the Mahon Creek Path Area encampment to designate campsites and establish voluntary compliance with the direction of the Court. This work was ultimately abandoned as we could not achieve the level of cooperation needed in order for that approach to be effective. The City then focused its attention towards amending the camping ordinance to address the concerns of the court, and to create a regulatory framework that we could use to mitigate impacts of unsanctioned encampments.

In May 2024, the City Council voted to further amend Chapter 19.50, by adopting Ordinance 2035, to address the concerns expressed by the Federal District Court in its injunction order. In August 2024, the Court granted the City’s motion to dismiss the injunction. Since that time, the City has made additional amendments to the Camping Ordinance to address concerns around fire severity zones, as well as to clarify language around unpermitted structures and add additional safety setback requirements. City staff continue to regularly enforce the Camping Ordinance
The history and litigation involving the Camping Ordinance informs the City’s approach to partnering with the County of Marin on homelessness, specifically the provision of shelter space. The preliminary injunction specifically referenced the lack of established, safe, temporary/interim shelter for those experiencing homelessness; indicating the need for doing so in an environment where 72% of the SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9
County’s homeless population is unsheltered. Post litigation, the City manages its legal risk of prohibiting areas to camping by coupling those efforts with providing interim shelter or sanctioned areas for individuals to camp and sleep. For example, the opening of the Sanctioned Camping Area coincided with expansions of the camping prohibitions along the Mahon Creek Path and elsewhere in the City. Further amendments to the Camping Ordinance were also made possible through the existence of the Sanctioned Camping Area. However, with the current capacity of 50 beds, future expansions of prohibitions on camping additional areas of the City will require increased interim shelter capacity, as proposed at the Merrydale site.

City Efforts to Address and Resolve Homelessness
For more than a decade, the City of San Rafael has been taking steps to address and resolve homelessness in our community. These include:

• In 2021, the City launched the Services Support Area (SSA) to provide a safe area for up to 49 individuals to reside temporarily and to easily connect to services providers for needed housingbased case management. These efforts led to 31 out of 47 individuals receiving a permanent supportive housing voucher, and successfully securing housing. • The City and County of Marin jointly applied for and received approximately $6M in Encampment Resolution Funding – Round 3 Grant Funding for a two-phase interim shelter program which led to the establishment of the Sanctioned Camping Area along the Mahon Creek Path (Phase 1).

The Sanctioned Camping Area, which opened in October 2024 has continued to house approximately 50 individuals and connect them to housing-based case management and other support services. All individuals at the Sanctioned Camping Area are receiving housing based case management services.

• The City and County entered into a Collaborative Agreement that established a framework and formal partnership that enhances interagency cooperation to better address the needs of those experiencing homelessness.

• Through the County’s 50 percent matching program for City-run homeless service programs, the City has contributed funding for a full-time equivalent dedicated Housing-Based Case Manager position.

• The City’s Affordable Housing Trust Fund has invested more than $3M for supportive housing developments, such as the Casa Canal (3301 Kerner) and Jonathan's Place projects. The City has also utilized $250,000 in state encampment resolution fund grants to expand case management services in partnership with the County of Marin.

• The City’s SAFE (Specialized Assistance for Everyone) team, a mobile mental health crisis response unit operated by Petaluma People Services Center, addresses various crises and provides critical support, operating twelve hours a day, seven days a week. The City initially allocated $775,000 for a three-year pilot program to fund this critical mental health support service.

• Other efforts include high utilizer case management programs, mobile showers services provided by Redwood Gospel Missions, and a fully dedicated Community Mental Health Liaison who works for the San Rafael Police Department.

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• The City has only three full-time employees dedicated to homelessness services, all of which are funded by the City’s General Fund. The City does not receive any direct, ongoing funding from the State or Federal government to support this work.

• In 2023, the City worked with Davidson Middle School to provide additional security services for children walking to and from the school near the Mahon Creek Path Area encampment. In addition, the City took steps to successfully close Lindaro Street to camping, to provide children with a clear path to walk to school.

The lack of adequate shelter options in the County has been a priority for the City over the last decade.

While the City does not directly provide social services to support the homeless population, as the urban and economic center for the County and the jurisdiction with the most County and non-profit Health and Human Service providers, the impacts of homelessness on the City have been disparate and significant when compared to other cities and towns in Marin. Given this, the City has continually partnered with the County of Marin to identify creative solutions to this lack of shelter space. First through the Services Support Area and then with the current Sanctioned Camping Area, the City and County have been able to successfully pilot what an interim shelter program could look like in San Rafael, gaining important experience and learnings on how such programs can successfully operate, how they can directly support and benefit the individuals experiencing homeless and resolve broader community concerns regarding impacts of unregulated homelessness on commercial corridors, small businesses, perceptions of safety and cleanliness, shared public spaces, and neighborhoods.

On January 30, 2023, the City Council held a special study session to specifically discuss criteria for evaluating potential sites for a sanctioned tiny home village. The session was a part of the City’s broader strategy to address homelessness through interim housing solutions. At that time, the City Council reviewed and discussed a draft set of evaluation criteria to guide the selection of a site for a tiny home village These criteria included:
• Site Suitability:
o Minimum lot size and flat topography
o Access to utilities (water, sewer, electricity)
o Environmental constraints (e.g., flood zones, hazardous materials) • Accessibility:
o Proximity to public transportation
o Walking distance to services (e.g., grocery stores, healthcare, employment centers) • Neighborhood Context:
o Compatibility with surrounding land uses
o Opportunities for community integration
• Ownership and Control:
o Publicly owned land preferred
o Willingness of private owners to lease or sell
o Zoning and General Plan consistency
• Operational Feasibility:
o Ability to secure a service provider
o Site security and management logistics
o Cost of site preparation and ongoing operations
• Community Engagement:
o Opportunities for public input
o Mitigation of neighborhood concerns

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The Council at that time directed staff to use these criteria to evaluate potential sites and return with recommendations. San Rafael is a fully built out city, meaning that most likely a potential project would have to be on an infill property (vacant, existing property). Given this context, the ability of the City to satisfy all of these criteria, while aspirational, would be and has been a challenging endeavor.

More recently, the City Council has discussed the need to establish more interim shelter facilities within the City and the County as a whole. More recently, the concept of an interim shelter was discussed by the City Council at the August 19, 2024 City Council Meeting, November 4, 2024 City Council Meeting, with the Homelessness Solutions Working Group, as well as through the City Council’s adopted ThreeYear Strategic Plan.

San Rafael’s multifaceted and collaborative efforts underscore a commitment to addressing homelessness through both immediate and long-term solutions. Yet, despite these efforts there remains an acute shelter crisis in San Rafael which requires both the City and County of Marin to explore options and create solutions to best support the most vulnerable in obtaining safe and dignified shelter options.

Legislative Discretion for Shelter Crises
In December 2018, the City of San Rafael formally declared a shelter crisis under California Government Code § 8698.2 (via Resolution No. 14612), as a necessary step to access one-time state funding under the Homeless Emergency Aid Program (HEAP). In making this declaration, the City recognized that the number of people experiencing homelessness at that time—233 individuals in San Rafael as identified in the 2017 Point-in-Time Count—exceeded available shelter and housing capacity, posing serious public health and safety risks to unsheltered residents. The declaration did not impose new regulatory burdens but enabled the City to apply for and receive critical capital and program funding to expand shelter, outreach, diversion, and permanent housing efforts. Since this time there have been numerous updates to state law regarding these declarations and therefore require an updated declaration.

In September 2024, Governor Newsom signed Senate Bill (SB) 1395. This legislation builds upon California's existing Shelter Crisis Act framework, which authorizes local governing bodies to declare shelter crises upon making specified findings, including but not limited to findings that a significant number of persons within the jurisdiction are without the ability to obtain shelter, and that the situation has resulted in a threat to health and safety of those persons.

Once a shelter crisis is declared, the Shelter Crisis Act suspends certain state and local laws and regulations that would hinder rapid deployment of homeless shelters, allowing jurisdictions to adopt reasonable local standards for shelter design, development, and operations. SB 1395 extended these emergency provisions from their 2026 sunset date to 2036 and expanded California Environmental Quality Act (CEQA) exemptions to include service contracts for shelters established under the Act.

Additionally, the legislation strengthens the state's Low Barrier Navigation Center provisions, originally established to create by-right zoning for service-enriched shelters in mixed-use and certain nonresidential zones. The bill removed the 2027 sunset date for these navigation center provisions, making them permanent, while clarifying that such facilities may be non-congregate and relocatable. The legislation also broadens CEQA exemptions for local agency activities related to navigation centers and expands Housing First requirements to encompass all state-funded emergency shelter and interim housing programs.

These amendments collectively extend and enhance the regulatory flexibility first established under the Shelter Crisis Act, providing local jurisdictions with continued tools to address homelessness while SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 12
maintaining the state's commitment to Housing First principles as the foundation for all homelessness interventions.

Recently, the County of Marin declared a shelter crisis to create some flexibility to address homelessness through the creation of shelters and other support structures. 350 Merrydale Road and Efforts to Identify an Interim Shelter Site Over the last two years, the City has been searching for a viable site to house an interim shelter within the City limits without success. The City’s search was guided by site criteria based on prior City Council direction, best practices and the types of properties that other California jurisdictions have utilized for interim shelters. Site criteria included price range, size, ample flat and accessible space for an interim shelter program, potential for development into affordable housing, proximity to transit, and ability to utilize without major community disruptions. This led to City staff exploring over 20 properties in addition to City-owned parcels. Unfortunately, none of the property owners of the 20 private properties identified were willing to lease or sell the property to the City at an acceptable and financially viable price.

Figure Five: Proposed Site Locations
301 Smith Ranch Road 700 Irwin Street
70 Skyview Terrace 70 Union Street
245 Nova Albion Way BMW Dealership Parcel
702 D Street Parking Lot at Four Points by
Sheraton
826 B Street Northgate Mall Parking Lot
523 4th Street 3rd Street Garage
Windward Way Parcel Villa Inn/Sloat Nursery
100 Yacht Club Drive Albert Park Tennis Courts
Third and Tamalpais Menzies Parking Lot
101/Andersen Drive City Hall Parking Lot
350 Merrydale Road Property is approximately 2.5 acres of land located just west of the US Highway 101 transportation corridor in northern San Rafael, roughly two miles north of downtown. The property has two physical addresses: 350 Merrydale Road and 3833 Redwood Highway, San Rafael. The property is recorded by the Marin County Assessor as Assessor’s Parcel Numbers (APN) 179-041-27 and 179-041-

28. The property is designated as a Planned Development (PD) District under the City’s zoning ordinance and currently consists of three single-story buildings, most recently occupied by an adult school. The buildings are separated by small courtyards and surrounded by an asphalt-surfaced parking lot. In terms of surrounding land uses, commercial businesses adjoin the property to the north and south; a residential apartment building also adjoins to the south, along Merrydale Road. A residential subdivision is to the west across Merrydale Road and the US Highway 101 corridor neighbors the site to the east. The property is approximately half a mile from the Sonoma-Marin Area Rail Transit (SMART) Marin Civic Center Station.

In 2018 the City received an application to develop 45 townhomes for sale at the property. The townhome project received land use approvals in 2020, and extensions were granted in 2022 and 2024 but as of SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 13
the date of this report, the property owner has not proceeded with construction activities and earlier this year placed the property up for sale.

ANALYSIS:

Considering the passage of SB 1395 and the City’s housing and homelessness goals, staff recommends that the City Council declare a new shelter crisis and adopt legislation to authorize the acquisition of 350 Merrydale Road to serve as an interim shelter on a temporary basis followed by a permanent affordable housing development.

Declaring a New Shelter Crisis in San Rafael
Why Declare a Shelter Crisis?
Declaring a shelter crisis provides relief from existing regulations and processes that make it difficult or impossible to act quickly in addressing immediate shelter needs. The discretion offered by SB 1395 and other related state legislation allows the City to create innovative shelter solutions in ways that meet the urgency of the situation, and which otherwise may be infeasible or prohibited. Furthermore, by declaring a shelter crisis, the City is emphasizing that it recognizes the urgency of the growing number of individuals in our community who are experiencing homelessness and the impact of this on our shared public spaces and community.

Upon declaring a shelter crisis, the City would be then empowered to take steps to mitigate the crisis.

Government Code Section 8698 permits cities to adopt an ordinance establishing reasonable local standards and procedures for the design, site development and operation of low barrier navigation centers and homeless shelters and the structures therein, provided they meet the requirements of the 2019 California Residential Code Appendix X and California Building Code Appendix O or any future standards adopted by the Department of Housing and Community Development related to emergency housing or emergency housing facilities. These codes define what sorts of structures or facilities qualify as emergency shelter and establish minimum standards for health, safety, and sanitation. Once the City has codified such standards, via ordinance, they may be applied to permit emergency shelter or low barrier navigation centers in the city during the time that the shelter crisis declaration is in effect.

The Shelter Crisis declaration requires the City to submit an annual report to the State Legislature on shelter capacity, resident outcomes, and actions taken to reduce homelessness. This reporting obligation will also serve as a tool for the City to track progress, evaluate the effectiveness of new shelter initiatives, and maintain transparency with the community. By documenting outcomes such as the number of shelter beds created, the number of individuals served, and the pathways to permanent housing, San Rafael can demonstrate accountability while using the data to guide future investments and program improvements.

The reporting metrics required by the state are not cumbersome and will be a part of data set that the City is incorporating as it continues to monitor its progress in reducing homelessness within the City.

Findings to Declare a Shelter Crisis in San Rafael
For the City to declare a shelter crisis, it must first find that a significant number of persons within the City of San Rafael are without the ability to obtain shelter.

As highlighted in this report, the 2024 Marin County Point-in-Time Count identified that San Rafael had 326 individuals experiencing homelessness, including 264 or 81% of the population unsheltered.

Furthermore, this represents more than one-third of Marin County’s total unsheltered population. The number of available year-round shelter beds in Marin County remains far below the need. Per Marin County Health and Human Services (HHS), the County’s homelessness response system currently supports approximately 235 shelter beds across multiple sites (individual, family, youth, Domestic SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 14
Violence survivors, temporary emergency response) and 108 transitional housing beds. Meanwhile, the 2024 count found a total of 1,090 persons experiencing homelessness in Marin County, of whom approximately 788 (about 72%) were unsheltered. Accordingly, there are a significant number of persons within the City of San Rafael who are without the ability to obtain shelter. Further highlighting the need for emergency shelter beds, over the last three years, the Ritter Center, one of the largest non-profits in Marin County serving the unhoused community, found that only one out of four individuals they referred to shelter were accepted.

In addition, a declaration of a shelter crisis must be supported by a finding that homelessness conditions pose a threat to the health and safety of individuals experiencing homelessness. Since the implementation of Ordinance 2040 (Camping Ordinance) in October 2024, the City has actively tracked homelessness-related Calls for Service (CFS) to assess enforcement impacts and public safety outcomes. (See City Council Agenda Item 6. Staff Report for April 7, 2025 meeting.) Between April and September 2024, the City recorded an average of 32 CFS per month associated with encampments.

During the first 12 months following ordinance adoption (October 2024–September 2025), the number of CFS averaged 35 per month. This modest change reflects more consistent and coordinated enforcement rather than an increase in incidents as this figure includes Campsite Warning Reports which are initiated by staff, not the community. During the same period, Campsite Warning Reports—the method by which the City enforces the camping ordinance-- decreased by nearly 39%, suggesting improved compliance and understanding of new camping regulations.

These citywide trends are mirrored in historically impacted areas, where calls have declined significantly.

Along the Mahon Creek Path, calls for service decreased by over 80% between fiscal year 2023–24 and fiscal year 2024–25 (256 to 49), and) and calls along Andersen Drive and Lindaro Street fell by more than 50% (65 to 32). These reductions demonstrate the effectiveness of targeted outreach, proactive site management, and the City’s engagement with service providers. However, the remaining calls—primarily medical aid, welfare checks, and other safety-related responses—underscore that individuals who remain unsheltered continue to experience ongoing risks to their health and safety. For example, in the first quarter of fiscal year (July-September 2025) the SAFE Team responded to 794 calls for service, with 69% of those calls responding to assist an individual experiencing homelessness.

The Emergency Housing Voucher (EHV) Program, first administered by the U.S. Department of Housing and Urban Development (HUD) in 2021 to assist individuals and families experiencing or at risk of homelessness, is slated to lose funding in late 2026. If this funding is not renewed, the impacts will be acutely felt in Marin County, which already faces one of the largest affordable housing gaps in California.

Without sustained EHV support, vulnerable households—including those exiting homelessness, fleeing domestic violence, or living with disabilities—would lose a vital stream of assistance that helps them remain stably housed. This would place added strain on local programs managed by the Marin Housing Authority, leaving the county’s 115 EHV recipient households at risk of eviction and deepening housing insecurity among historically marginalized residents. At the same time, uncertainty surrounding the federal government and the ongoing shutdown threatens to cut off access to the Supplemental Nutrition Assistance Program (SNAP) for hundreds of Marin County residents—further destabilizing low-income families who rely on federal safety-net programs for basic needs such as food and shelter.

Taken together, the data shows that while enforcement and outreach strategies have reduced large unsanctioned encampments and improved compliance with the Camping Ordinance, a substantial number of people continue to live outdoors without safe or stable shelter. Their continued and frequent interaction with first responders for emergency health and safety needs illustrates persistent exposure to harm. Accordingly, these conditions meet the threshold under California Government Code §8698 for SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 15
declaring a shelter crisis, as homelessness in San Rafael continues to pose a direct and ongoing threat to the health and safety of those experiencing it.

Staff is recommending the City Council adopt a resolution (Attachment 1) declaring a shelter crisis in San Rafael because the situation of people living without shelter or in severely substandard conditions is such that immediate improvement in their conditions in warranted to support their health and safety while the City and private entities are pursing permanent housing.

Concurrent with the action of declaring a shelter crisis, staff is recommending the City Council adopt an urgency ordinance (Attachment 2) adopting local standards and procedures for the design and site development of shelters for people experiencing homelessness and the structures and facilities therein at the City Manager’s discretion for projects of the City of San Rafael on city owned or leased property to provide emergency housing and declaring the urgency thereof, to take effect immediately.

In addition, with this action, staff is also recommending the City Council introduce and waive the first reading for an Ordinance (Attachment 3) adopting local standards and procedures for the design and site development of shelters for people experiencing homelessness and the structures and facilities therein at the City Manager’s discretion for projects of the City of San Rafael on city owned or leased property to provide emergency housing and declaring the urgency thereof.

This two-ordinance approach is to provide the City Manager with this delegated authority immediately until the second ordinance takes effect on December 31, 2025, 30 days from its second reading on December 1, 2025.

Innovative Partnership for Affordable Housing and Interim Shelter In furtherance of the City’s homelessness and housing goals and policies, since July 2024 City staff has been meeting with representatives from the County of Marin’s County Executive Office and Health and Human Services Department to explore new and innovative approaches to developing much needed affordable housing and interim shelter in the County. Over the course of this time, the City and County have developed a Cooperative Agreement, as well held County Supervisor & City Council Joint Housing and Homelessness Meetings on October 14, 2024 and April 18, 2025 to discuss how both agencies can work together to address our communities most pressing issues around homelessness and housing. As a result of these efforts, the City and County are ready to memorialize their new partnership with the County Agreement and County Affordable Housing Agreement (Attachment 4).

The County of Marin has offered to provide funding to purchase the real property located at 350 Merrydale Road for use as an interim shelter and future permanent affordable housing in San Rafael. While the City works to entitle the property for affordable housing, the City and County wish to put the property to use to help address homelessness, specifically within the City of San Rafael, by establishing a limited-term interim shelter project. With this approach, the City and County can leverage the City and County’s State Encampment Resolution Fund- Round 3 Grant, in a manner that improves the interim shelter for unhoused residents by providing a location away from the road, improved access to facilities, and improved shelter, such as tiny cabins, which mitigates risks that unhoused individuals face.

Specifically, upon approval by the Marin County Board of Supervisors, the County of Marin will provide a grant (Attachment 4) to the City of $8,000,000 to support the purchase of the property and initial set-up of the interim shelter under the following conditions:
• Ownership and Management
o City will purchase and own the property, manage setup of the interim shelter site, and provide public safety services (Police/Fire/SAFE Team).

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 16
• Interim Shelter Operations
o City and County will split the operating costs until June 30, 2027. o Up to two extensions beyond June 30, 2027, based on available funding per a City-led fundraising campaign, in collaboration with the County
o Site closure no later than June 30, 2029.
o Maximum of 65 individuals will be served at any one time. Through program attrition and contingent upon available funding, no more than 70 unique individuals may be eligible to participate in the program with priority placement given in this order; (1) current Sanctioned Camping Area participants, (2) Andersen Drive Encampment; (3) other encampments in the City of San Rafael.
o No new entries within one year of anticipated closure unless the City and/or County raises either public or private funds to continue the operation of the interim shelter in a manner similar to and of the same standard as its operation in its initial year. • Affordable Housing Development
o City to entitle property for 80 units of affordable housing by June 30, 2028. o City will make good faith effort to keep affordability levels as low as possible. o County will contribute $100,000 per entitled unit, up to 80 units; If less than 80 units are entitled, the City will refund the County $100,000 per unit. o If the property is not entitled with 80 units of affordable housing by June 30, 2028, or the City otherwise defaults on either the Grant Agreement or Affordable Housing Agreement, the City must reimburse the County the full grant of $8 million. The Affordable Housing Agreement has no end date.

The interim shelter project qualifies as a Low Barrier Navigation Center because it provides individualized private sleeping units, allowing residents dignity and privacy while they work toward long-term permanent housing. The program welcomes the “3P’s (pets, possessions, and partners) that often prevent people from accessing shelter services and will comply with Chapter 6.5 (commencing with section 8255) of Division 8 of the Welfare and Institutions Code. The site will be operated in partnership with experienced service providers who will be present on-site daily to offer housing-based case management, behavioral health support, and other wraparound services as will be outlined in each resident’s individualized service plan. Additionally, the project will be fully integrated with Marin County’s Coordinated Entry System and Homeless Management Information System (HMIS), enabling staff on-site to conduct assessments, making referrals, and connect participants to various permanent housing pathways to expedite positive housing outcomes. These combined elements of the project ensure that the shelter is accessible, personcentered, and focused on assisting individuals in transition to permanent housing as quickly as possible.

The owners of 350 Merrydale Road, Ridgewood Properties Partnership, LLC and Merrydale-Clayton, LLC (collectively, “Owners”), have agreed to sell the City the Property for $6,700,000. The parties have negotiated a Purchase and Sale Agreement that requires City and Owners to open an escrow and City to deposit $350,000 into that escrow within three business days after the Purchase and Sale Agreement is fully executed. Escrow will immediately release the deposit to the Owners, and the deposit will be nonrefundable unless the Owners breach the Purchase and Sale Agreement or one or more of the Owners’ representations in the Purchase and Sale Agreement is untrue on the Closing Date. The proposed purchase price is consistent with the City’s appraisal. In addition, the property owner will pay fifty percent of the connection fee required by the Las Gallinas Valley Sanitary District (LGVSD), approximately $156,000, out of escrow to preserve the sewer capacity associated with the entitled 45- unit townhome development. If the City decides that it cannot benefit from the connection fee, it will seek a refund of the amount paid from LGVSD to the extent provided by the LGVSD’s policies. If the City SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 17
decides that the future affordable housing development will benefit from the connection fee, the City will have to pay the outstanding connection fee to LGVSD. Regardless, the City will reimburse the Seller for the amount of the connect fee payment made from escrow by the seller within one-year of the closing date. The authorization for the City Manager to make this repayment is requested in the Resolution associated with the purchase and sale agreement (Attachment 5). The purpose of this is to preserve this portion of the existing entitlement for any future affordable housing development on the site. Finally, should there be any legal challenges to the City’s purchase of the Property, the City will be required to indemnify the Sellers, as well if there are any legal proceedings following the close of escrow for to an occurrence on the Property after the City takes ownership of the Property.

Accordingly, staff recommends that the City Council adopt the Resolution (Attachment 4) authorizing the City Manager to negotiate and execute the grant agreement and affordable housing agreement with the County of Marin to support this partnership for affordable housing and interim shelter. Furthermore, staff recommends that the City Council adopt the Resolution (Attachment 5) authorizing the City Manager to negotiate and enter into a purchase and sale agreement and ancillary documents for the property located at 350 Merrydale Road and enter into a professional services agreement with Cornish and Carey Commercial (doing business as Newmark) in an amount not to exceed $201,000 to serve as the City of San Rafael’s real estate broker.

Alignment with Adopted City Goals and Policies
While the 350 Merrydale Road project is not a panacea for all of San Rafael and Marin County’s housing challenges, implementing an interim shelter for homeless residents and facilitating an affordable housing development at 350 Merrydale Road will advance many of the City Council’s adopted housing goals, as demonstrated below in Figure Five.

Figure Six: 350 Merrydale Road Alignment with City Goals Plan Goal/Policy 350 Merrydale Road Project
Strategic
Plan
Objective D.1.1: In collaboration with the County of
Marin, explore the implementation of a housingfocused interim shelter program, supported by robust case management services to assist in
transitioning unhoused community members into
permanent supportive housing, or other permanent
housing solutions.

Project built on collaboration
with County and first phase
centered around
implementation of interim
shelter.

Strategic
Plan
Objective D.1.4: Strategically increase and secure
additional funding sources by leveraging key
partnerships that will support additional programs
that reduce homelessness.

Partnering with the County
unlocks $8 million in funding
for the interim shelter.

Strategic
Plan
Goal D.2: Advance the development of new
housing across all affordability levels to meet the
stat’s regional housing needs allocation (RHNA)
requirements as outlined in the City’s Housing
Element, ensuring diverse, sustainable, and
equitable housing opportunities for all residents.

Affordable housing
development will provide
housing at the most needed
affordability levels.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 18
Housing
Element
Goal H-1: Homelessness: End and prevent
homelessness in San Rafael
Interim shelter will transition
homeless into permanent
housing and affordable
development will reduce cost
burden for future tenants.

Housing
Element
Goal H-4: Housing Choice: Meet housing needs
through a range of housing choices and affordability
levels throughout the city
Affordable housing
development will provide
housing at the most needed
affordability levels.

Housing
Element
Policy: H-1.1: Collaboration and Coordination: Work
with the County of Marin, local supportive service
providers, and housing and social justice
organizations to assist persons experiencing
homelessness.

Interim shelter will serve
homeless individuals through
City-County collaboration.

Housing
Element
Policy H-1.2: Transitional and Supportive Housing:

Support permanent supportive housing for those
who are unhoused or at risk of losing their housing.

Interim shelter will provide
supportive services for
homeless individuals.

Housing
Element
Policy H-1.3: Emergency Shelters: Allow for
emergency shelters in appropriate zoning districts
in order to accommodate San Rafael’s unsheltered
population.

The first phase of the project
consists of an interim shelter.

Housing
Element
Policy H-4.1: Equitable Distribution of Affordable
Housing: Encourage the creation of affordable
housing opportunities in all parts of the city,
including areas where such housing does not exist
today.

The second phase of the
project will result in an
affordable housing
development in North San
Rafael, near Civic Center and
SMART station resources.

Housing
Element
Policy H-4.4: Affordability of Projects on Public
Land: Prioritize the development of affordable
housing rather than market rate units on surplus
public land.

The permanent housing will be
an all-affordable development.

Housing
Element
Policy H-4.14: Commercial to Residential
Conversion: Encourage the adaptive reuse of older
commercial buildings, including office and retail
buildings, for housing.

Adapts unused buildings
onsite for interim shelter
services and eventually
permanent affordable housing
development.

Equity,
Diversity,
and
Inclusion
Element
Goal EDI-3: Housing Stability: Improve housing
stability for all San Rafael residents, particularly
those with low or very low incomes.

Affordable housing
development will provide
permanent housing for low
and very low-income
residents.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 19
On November 4, 2025, at a special meeting, pursuant to Government Code Section 65402, the City’s Planning Commission considered whether the proposed purchase of the Property would conform with the City’s General Plan. The Planning Commission adopted Planning Commission Resolution No. 25- 07 reporting that the proposed purchase of the Property for use as an interim shelter and affordable housing conformed to the City’s General Plan (Attachment 6.).

In addition to advancing the City’s housing goals, the acquisition of 350 Merrydale Road addresses the practical challenge of locating a site that meets various criteria for a successful project. This property is the most feasible and cost-effective location. The property consists of over 2.5 acres, including a large surface parking lot and existing utilities; this provides for quick site preparation, and sufficient space for both an interim shelter and onsite supportive services in the short term and a permanent affordable housing development in the long term. 350 Merrydale Road is also attractive due to its proximity to the Marin Civic Center SMART station, the Civic Center itself, and the US 101 freeway, grocery stores, and community services; these resources can benefit both interim shelter residents and affordable housing tenants. Ultimately, viable locations such as 350 Merrydale Road are rare, as demonstrated by the extensive search over the last two years to secure a suitable site.

ENVIRONMENTAL REVIEW:

Although this staff report discusses a series of actions related to addressing the housing shortage in San Rafael, each action (either introduction or adoption of an ordinance or adoption of a resolution) serves different purposes and can be implemented independently. Accordingly, the environmental review for each action is discussed below.

Attachment 1. Declaration of Shelter Crisis Resolution. The California Environmental Quality Act (Public Resources Code Section 21000, et seq.) (CEQA) defines a project “as an activity that may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. (Cal. Pub. Res. Code Sec. 21065.) CEQA Guideline 15378 (b)(2), (4), (5) excludes from the definition of a project general policy, fiscal, and administrative activities. The declaration of a shelter crisis is a finding that existing conditions satisfy certain criteria in state law. The proposed resolution does not require any City action. Accordingly, the proposed resolution is not subject to CEQA because it does not constitute a project. To the extent that it did constitute a project, it would be exempt from further CEQA review pursuant to CEQA Guideline 15061(b)(3) because there is no possibility that the declaration of a shelter crisis may have a significant effect on the environment since it merely is finding that existing conditions meet certain criteria.

Adoption of this resolution is also exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage. Specific actions necessary to prevent or mitigate an emergency are exempt from CEQA. (Cal. Pub. Res. Code Sec. 21080(b)(4); CEQA Guideline 15269(c).) An emergency means “a sudden, unexpected occurrence, involving a clear and imminent danger, demanding immediate action to prevent or mitigate loss of, or damage to life, health, property, or essential public services.” (Cal. Pub. Res. Code Sec. 21060.3; CEQA Guideline 15369.) As demonstrated throughout this staff report, the lack of affordable housing throughout San Rafael and the County has reached a tipping point due to the uncertainty of federal housing programs and other safety net programs under the current federal administration. As of the writing of this staff report, the nation is experiencing the impacts of an unprecedented shutdown of the federal government.

Attachments 2 and 3. The Urgency Ordinance and Ordinance. The Ordinances are not considered projects under CEQA because they involve general policy, fiscal, and administrative activities. (See Cal.

Pub. Res. Code Sec. 21065; Gov. Code Sec. 65660(b), 65662; CEQA Guideline 15378(b)(2), (4), (5).) Both Ordinances are implementing the provisions of Government Code 8698.1 and 8698.4, which shall apply upon a declaration of a shelter crisis. To the extent the ordinances did constitute a project, they SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 20
would be exempt from further CEQA review pursuant to CEQA Guideline 15061(b)(3) because there is no possibility that the ordinances may have a significant effect on the environment since they merely are finding that existing conditions meet certain criteria. Finally, adoption of these Ordinances is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage.

Attachment 4. Resolution Authorizing County Agreements. Upon declaration of a shelter crisis, CEQA does not apply to financial assistance or an encumbrance of land owned by a local government for a homeless shelter. (Cal. Gov. Code Sec. 8694(a)(4).) Further, the agreements are exempt from CEQA review pursuant to CEQA Guideline 15061(b)(3), because the agreements will not have a significant effect on the environment. The underlying projects, a temporary homeless shelter or low barrier navigation center are both uses by right and therefore ministerial projects not subject to CEQA, pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines section 15268(b). (See also Gov. Code Sec. 65660(b), 65662.) The proposed future affordable housing project is also exempt from CEQA pursuant to Public Resources Code sections 15183 (Community Plan Exemption) and 15332 (Class 32 Infill), as detailed in the attached CEQA memo (Attachment 7). Finally, adoption of this Resolution is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage.

Attachment 5. Resolution to Acquire 350 Merrydale Road and to Approve Real Estate Brokerage Agreement. Upon declaration of a shelter crisis, CEQA does not apply to financial assistance or conveyance by a local government for a homeless shelter. (Cal. Gov. Code Sec. 8694(a)(4).) Further, the underlying projects, a temporary homeless shelter or low barrier navigation center are both uses by right and therefore ministerial projects not subject to CEQA, pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines section 15268(b). (See also Gov. Code Sec. 65660(b), 65662.) The proposed future affordable housing project is also exempt from CEQA pursuant to Public Resources Code sections 15183 (Community Plan Exemption) and 15332 (Class 32 Infill), as detailed in the attached CEQA memo. Approval of the brokerage agreement does not constitute a project pursuant to CEQA Guideline 15378(b)(4), and even if it did constitute a project, approval of the brokerage agreement is exempt from CEQA pursuant 15061(b)(3) under common sense that it can be seen that the brokerage agreement will not result in an impact to the environment. Finally, adoption of this Resolution is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage.

COMMUNITY OUTREACH & NEXT STEPS:

The City is leading community outreach and engagement efforts related to the proposed interim shelter, in coordination with the County. The City is committed to an ongoing and transparent public process that ensures community feedback is acknowledged, responded to, and integrated into the project’s design and operations.

The pending purchase and proposed land uses for the site, were publicly announced on October 15, 2025, after real-estate negotiations were finalized. Real-estate discussions were held in closed session, consistent with State law to protect the public’s financial interest. Early disclosure can cause sellers to increase prices or withdraw properties. Once the purchase price was secured between the City and County was reached – both agencies immediately moved to inform the community.

The project team conducted a comprehensive outreach effort to ensure the surrounding community is informed, heard, and engaged. Staff outreached a total of 121 households and 23 businesses in the immediate neighborhood, speaking to residents and business owners while distributing informational flyers to those who were not home. A virtual community meeting was held on October 28th to provide an SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 21
overview of the interim shelter program, share details about site operations, and answer questions from residents.

In addition, an in-person, publicly noticed, community open house was held on November 6th, offering an opportunity for residents to provide their feedback directly to the Mayor and City Councilmembers, and for residents to engage with staff, service providers, and project partners to answer specific questions and discuss concerns.

To ensure that residents and businesses who live and work in close proximity to the site are aware of these opportunities, city staff conducted door-to-door outreach in the surrounding neighborhood, distributing informational flyers and speaking directly with households and business owners. This combination of virtual, in-person, and on-the-ground engagement was designed to create multiple entry points for meaningful community participation.

Important community feedback was received as a result of these efforts and which will continue to inform site operations, safety concerns and neighborhood impacts (as discussed earlier in this report). The City continues to keep the project webpage up to date, including Frequently Asked Questions, and responses to feedback received from the community: Interim Shelter Site at 350 Merrydale Road - San Rafael.

If the City Council approves of staff’s recommendations, the work to establish the interim shelter would begin. Staff would develop a preliminary interim shelter site plan, and a detailed public engagement plan.

The input received by the community thus far would inform both documents.

The City and County would also hold multiple community meetings to follow up on the input received thus far, for example:
• The Good Neighbor Policy (quiet hours, loitering around the site and in nearby public spaces, etc.)
• Preliminary interim shelter site plan (i.e., entrance/exit location, location of units on property), • Site Security and Neighborhood Safety (i.e., increased security patrols in and around the site and along the SMART Pathway, regular maintenance of surrounding public spaces, etc.). • Program Design (i.e., prohibiting registered sex offenders from participating, opportunities for community to engage with participants, etc.)
• Public Engagement Plan.

The City and County developed a draft Good Neighbor Policy, which sets clear expectations for safety, communication, and ongoing feedback if the site opens, as well as clear communication channels. The first version of this Good Neighbor Policy was shared with the community and staff incorporated their feedback to revise the document into a second version. The current (second) version of this policy is attached to the Grant Agreement with the County. The City and County will hold additional community meetings in the coming months to receive more input on the Good Neighbor Policy before it is finalized.

The City and County will report out on how public feedback received from these meetings has been and incorporated into the final site design, program operations, and Good Neighbor Policy.

In addition, staff would recommend that the City Council approve the procurement of cabins and related materials at a public meeting, complete the necessary site improvements and utility connections, and the City’s Building Official issuance of building permits for the interim shelter. If approved, staff anticipate the interim shelter would open in approximately six months.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 22
Staff would also return to the City Council in Q3 of Fiscal Year 2025-26 with an evaluation of the City’s regulations for camping on public property (Camping Ordinance), which would include a staff recommendation to prohibit camping within 2,000 feet of 350 Merrydale (capturing all of the Rafael Meadows neighborhood), as well as recommendations to improve the ordinance, and to facilitate the closure of the Andersen Drive encampment.

With respect to the permanent affordable housing development, if approved, staff would take steps to identify an affordable housing developer, negotiate a disposition and development agreement, and entitle the affordable housing project, The first step would consist of City staff releasing a Request for Proposals (RFP) to solicit proposals from affordable housing developers. After reviewing the RFP responses, City staff would return to City Council with a recommendation on which affordable housing developer the City Council should authorize entering into an Exclusive Negotiating Agreement (ENA) with. If the City enters an ENA with an affordable housing developer, the City and the developer would negotiate the terms of a disposition and development agreement, after which the developer would submit an application with the City’s Planning Division and move through the land use approval process before June 2028. If the land use entitlements were obtained, the developer would submit architectural plans that the City’s Building Division and Fire Department will review for safety. Following plan check approval from the Building Division and Fire Department and building permit issuance, the developer would then commence construction of the affordable housing development.

FISCAL IMPACT:

The acquisition of 350 Merrydale Road would be fully funded by the County of Marin through a grant agreement. Annual interim shelter operating costs are estimated to be approximately $2M annually and would be split evenly between the City and the County of Marin through June 30, 2027. Funding for this is made possible through a braided funding approach that combines resources from the City and County’s State Encampment Resolution Fund- Round 3 Grant, the County’s Affordable Housing Trust Fund, and local contributions from both the City and County. Continued operations beyond June 30, 2027 would be supported through fundraising efforts and philanthropic donations.

The County’s Grant provides $100,000 per unit of affordable housing entitled for the property, up to a maximum amount of $8,000,000. If less than 80 units of affordable housing are ultimately entitled, then the City would refund the County $100,000 per unit. This refund would be provided from the General Fund. If the City does not entitle the property by June 30, 2028, the City would refund the entirety of the $8M grant.

The total cost of the transaction is $6,953,500 which includes the property purchase ($6,700,000), brokerage fees ($201,000), legal ($50,000), and property appraisal ($2,700).

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the staff recommendation.

2. Direct staff to return with more information.

3. Do not approve the staff recommendation.

RECOMMENDED ACTION:

Staff recommends that the City Council take the following actions:
 Adopt the above referenced resolution declaring a shelter crisis in San Rafael pursuant to California Government Code Section 8698, et seq.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 23
 Waive further reading, refer by title only, and adopt the above-referenced urgency ordinance adopting reasonable local standards and procedures for homeless shelters pursuant to Government Code Section 8698, et. seq.
 Introduce, waive further reading and refer by title only to the above referenced ordinance adopting reasonable local standards and procedures for homeless shelters pursuant to Government Code Section 8698, et. Seq.
 Adopt the above-referenced resolution authorizing the City Manager to negotiate and execute a Grant Agreement between the City and the County of Marin in the amount of $8 million and an Affordable Housing Agreement in a form to be approved by the City Attorney to facilitate the acquisition of real property located at 350 Merrydale (APNs 179-41-27 & 179-041-28) for use as an interim shelter and permanent affordable housing and to accept the full amount of the grant and appropriate $7 million to cover costs related to the acquisition.  Adopt a resolution authorizing the City Manager to negotiate and execute a purchase and sale agreement in the amount of $6.7 million, plus associated costs, a certificate of acceptance and other documents necessary to complete the purchase of the real property located at 350 Merrydale Road and to execute a professional services agreement with Cornish and Care Commercial (d/b/a Newmark) in an amount not to exceed $201,000 for real estate brokerage services rendered to the City for the City’s purchase of 350 Merrydale Road (APNs 179-41-27 & 179-041-28).

ATTACHMENTS

1. Resolution for Shelter Crisis

2. Urgency Ordinance

3. Ordinance

4. Resolution regarding County Grant and Affordable Housing Agreements

5. Resolution regarding purchase of property located at 350 Merrydale Road and brokerage agreement

6. Planning Commission Resolution No. 25-07

7. CEQA Memo

8. County Grant Agreement

9. County Affordable Housing Agreement

10. Purchase and Sale Agreement

11. Real Estate Brokerage Agreement

12. Public Comments Received
4926-4741-9768 v1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DECLARING A SHELTER CRISIS PURSUANT TO GOVERNMENT CODE SECTION 8698, ET SEQ; CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: NOT A PROJECT PER CEQA GUIDELINES 15378(b)(2),(4),(5); ALTERNATIVELY EXEMPT PURSUANT TO CEQA GUIDELINE 15061(b)(3) [COMMON SENSE]; 15269(c) [EMERGENCY]
WHEREAS, the City of San Rafael (City) and Marin County lack both housing supply and affordable housing. The City’s 2023-2031 Housing Element, the Marin County Civil Grand Jury’s 2024-2025 report titled “The Worrisome Future of Marin Housing,” and Rooted in Marin, a 2025 analysis of anti-displacement strategies for Marin County, document these unfortunate realities, as well as the negative consequences of insufficient housing opportunities; and WHEREAS, for instance, the Rooted in Marin report noted that Marin County has the third highest median rental rate in California and the cost of purchasing an average home is more expensive in Marin County than every metropolitan area other than the San Jose Metro Area (Rooted in Marin p.20); and
WHEREAS, as a result, roughly three in five Marin renter households are cost-burdened, meaning they dedicate more than 30 percent of their income on housing (Rooted in Marin p.21); and
WHEREAS, the lack of new housing stock has led to rising Marin County median housing prices, which increased by over $1 million in the eight-year period between 2013 to 2021, from $966,000 to $1.91 million, a 98 percent increase (The Worrisome Future of Marin Housing, p.9); and
WHEREAS, over that same period median household income in Marin County only increased by 45 percent; and
WHEREAS, the high cost of housing in Marin County is largely due to a lack of housing supply, which is the result of a dearth of housing construction in recent decades; and WHEREAS, the adopted San Rafael 2023-2031 Housing Element (Housing Element) states that San Rafael had 1,247 vacant units in 2010 and 1,163 vacant units in 2020.10 As a percentage of total housing stock, the vacancy rate declined from 5.2 percent in 2010 to 4.7 percent in 2020. This is lower than the vacancy rate in Marin County, which was 7.2 percent in 2010 and

6.6 percent in 2020.; and
WHEREAS, the Housing Element found that San Rafael renters are considerably cost-burdened (spending more than 30 percent of one’s income on housing), with 55 percent of San Rafael renters being cost-burdened and 21 percent of San Rafael’s renter households being severely cost-burdened (spending more than 50 percent of their income on housing); and 4926-4741-9768 v1
WHEREAS, the 2024 Marin County Point-in-Time Count identified 1,090 individuals experiencing homelessness countywide, with 788 unsheltered. San Rafael had 326 individuals experiencing homelessness, including 264 unsheltered; and WHEREAS, per Marin County Health and Human Services, the County’s homelessness response system currently supports approximately 235 shelter beds across multiple sites, including individual, family, youth, domestic violence survivor, and temporary emergency response shelters, along with 108 transitional housing beds. These available beds fall far short of meeting the need identified in the 2024 Count; and
WHEREAS, further highlighting the need for emergency shelter beds, over the last three years, the Ritter Center, which is one of the largest non-profits in Marin County serving the unhoused community, found that only one out of four individuals they referred to shelter were accepted.

WHEREAS, since the implementation of Ordinance 2040 (Camping Ordinance) in October 2024, which coincided with the opening of the City’s Sanctioned Camping Area, the City has actively tracked homelessness-related Calls for Service (CFS) to assess enforcement impacts and public safety outcomes; and
WHEREAS, the data shows that along the Mahon Creek Path, CFS decreased by over 80% between FY 2023–24 and FY 2024–25 (256 to 49), and) and calls along Andersen Drive and Lindaro Street fell by more than 50% (65 to 32); and
WHEREAS, these reductions demonstrate the effectiveness of targeted outreach, proactive site management, and the City’s engagement with service providers; and WHEREAS, the remaining CFS—primarily medical aid, welfare checks, and other safety-related responses—underscore that individuals who remain unsheltered continue to experience ongoing risks to their health and safety. For example, in the first quarter of FY 25-26 (July-September 2025) the SAFE Team responded to 794 calls for service, with 69% of those calls responding to assist an individual experiencing homelessness; and
WHEREAS, activities carried out at unauthorized encampments may cause additional sanitation, health and safety impacts to the surrounding community and natural environment; and
WHEREAS, the complexity and magnitude of the homelessness crisis and the limited supply of affordable permanent housing in the city of San Rafael demonstrate that there is a significant and immediate need for interim housing in the City, including emergency shelters and low barrier navigation centers, to protect the life, health, and safety of people experiencing homelessness; and
WHEREAS, strict compliance with the provisions of state and local regulatory statutes, regulations, and ordinances prescribing standards of housing, health, safety, and environmental impact assessment may prevent, hinder, or delay emergency housing measures that could be expedited through a Declaration of Shelter Crisis; and
4926-4741-9768 v1
WHEREAS, pursuant to California Government Code Sections 8698 through 8698.4 (“Shelter Crisis Act”), local jurisdictions may declare a shelter crisis when a significant number of residents are without shelter and the situation presents a threat to their health and safety; and WHEREAS, the City Council finds that immediate action is necessary to protect life, health, and safety by enabling the City to promptly implement homeless shelters that meet reasonable health and safety standards; and
WHEREAS, the City Council further finds that such immediate actions are necessary to mitigate an imminent emergency due to the ongoing affordable housing shortage, for the purposes of the California Environmental Quality Act (“CEQA”).

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael that:

1. Based on the staff report, staff presentation and public comment received, the City Council hereby finds:
a. That the foregoing recitals are hereby true and correct; and incorporated by reference; and
b. That a significant number of persons within the City are without the ability to obtain shelter: and
c. That this situation constitutes a threat to the health and safety of those persons. d. That the adoption of this resolution does not constitute a project as defined in Public Resources Code Section 21065 because this resolution is simply a declaration that existing conditions meet certain state law criteria. (See also CEQA Guideline 15378 (b)(2), (4), (5).) Further, to the extent that it did constitute a project, it would be exempt from further CEQA review pursuant to CEQA Guideline 15061(b)(3) because there is no possibility that the declaration of a shelter crisis may have a significant effect on the environment since it merely is finding that existing conditions meet certain criteria. Finally, adoption of this resolution is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage.

2. The City Council hereby declares that a shelter crisis as that term is used in Government Code Section 8698(d) exists within the City of San Rafael.

3. This resolution shall take effect immediately upon adoption and shall remain in effect until terminated by the City Council.

4. Any one of the reasons stated herein as support for the declaration of a shelter crisis forms a sufficient basis on which to base that determination independent of any other justification for the determination.
4926-4741-9768 v1
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City on Monday, the 17th day of November 2025, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

____________________
Lindsay Lara, City Clerk
4915-9294-8600 v1 1
ORDINANCE NO.

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL

This is lower than the vacancy rate in Marin County, which was 7.2 percent in 2010 and 6.6 percent in 2020.; and
WHEREAS, the Housing Element found that San Rafael renters are considerably cost-burdened (spending more than 30 percent of one’s income on housing)with 55 percent of San Rafael renters being cost-burdened and 21 percent of San Rafael’s renter households being severely costburdened (spending more than 50 percent of their income on housing).; and 4915-9294-8600 v1 2
WHEREAS, the 2024 Marin County Point-in-Time Count identified 1,090 individuals experiencing homelessness countywide, with 788 unsheltered. San Rafael had 326 individuals experiencing homelessness, including 264 unsheltered; and
WHEREAS, per Marin County Health and Human Services, the County’s homelessness response system currently supports approximately 235 shelter beds across multiple sites, including individual, family, youth, domestic violence survivor, and temporary emergency response shelters, along with 108 transitional housing beds. These available beds fall far short of meeting the need identified in the 2024 Count; and
WHEREAS, further highlighting the need for emergency shelter beds, over the last three years, the Ritter Center, which is one of the largest non-profits in Marin County serving the unhoused community, found that only one out of four individuals they referred to shelter were accepted.

WHEREAS, since the implementation of Ordinance 2040 (Camping Ordinance) in October 2024, which coincided with the opening of the City’s Sanctioned Camping Area, the City has actively tracked homelessness-related Calls for Service (CFS) to assess enforcement impacts and public safety outcomes; and
WHEREAS, the data shows that along the Mahon Creek Path, CFS decreased by over 80% between FY 2023–24 and FY 2024–25 (256 to 49), and) and calls along Andersen Drive and Lindaro Street fell by more than 50% (65 to 32); and
WHEREAS, these reductions demonstrate the effectiveness of targeted outreach, proactive site management, and the City’s engagement with service providers; and WHEREAS, the remaining CFS—primarily medical aid, welfare checks, and other safety-related responses—underscore that individuals who remain unsheltered continue to experience ongoing risks to their health and safety. For example, in the first quarter of FY 25-26 (July-September 2025) the SAFE Team responded to 794 calls for service, with 69% of those calls responding to assist an individual experiencing homelessness; and
WHEREAS, activities carried out at unauthorized encampments may cause additional sanitation, health and safety impacts to the surrounding community and natural environment; and WHEREAS, the complexity and magnitude of the homelessness crisis and the limited supply of affordable permanent housing in the city of San Rafael demonstrate that there is a significant and immediate need for interim housing in the city, including emergency shelter and low barrier navigation center, to protect the life, health, and safety of people experiencing homelessness; and
WHEREAS, strict compliance with the provisions of state and local regulatory statutes, regulations, and ordinances prescribing standards of housing, health, safety, and environmental impact assessment may prevent, hinder, or delay emergency housing measures that could be expedited through a Declaration of Shelter Crisis; and
4915-9294-8600 v1 3
WHEREAS, pursuant to California Government Code Sections 8698 through 8698.4 (“Shelter Crisis Act”), local jurisdictions may declare a shelter crisis when a significant number of residents are without shelter and the situation presents a threat to their health and safety; and WHEREAS, the Shelter Crisis Act authorizes jurisdictions to adopt reasonable local standards to expedite shelter development, including both emergency shelters and low barrier navigation centers, while ensuring protection of health, safety, and sanitation; and WHEREAS, on November 17, 2025, the San Rafael City Council adopted Resolution No. [XXXX] declaring a shelter crisis, finding that the number of individuals in San Rafael without shelter constitutes a threat to their health and safety, and directing staff to return with an ordinance establishing reasonable local standards and procedures consistent with Government Code Section 8698; and
WHEREAS, the City Council finds that immediate action is necessary to protect life, health, and safety by enabling the City to promptly implement homeless shelters that meet reasonable health and safety standards; and
WHEREAS, the delay required for a standard two-reading ordinance process would hinder the City’s ability to respond to the urgent needs of unsheltered residents, particularly during the winter months when exposure risks increase; and
WHEREAS, this ordinance is therefore adopted as an urgency measure, necessary for the immediate preservation of the public peace, health, and safety of the residents of San Rafael; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. URGENCY AND FINDINGS

1. Based upon the duly noticed public hearing at the City Council meeting on November 17, 2025, to consider to consider adoption of this Ordinance, the City Council accepted all oral and written public comment and the written staff report, the City Council finds that the above recitals are hereby declared to be true and correct and are incorporated into this ordinance as findings of the City Council.

2. The facts contained in the above recitals and the Shelter Crisis that has been declared in the City of San Rafael pursuant to Resolution No. xxx. adopted on November 17, 2025, conclusively demonstrate the urgent need to adopt this ordinance for the immediate preservation of the public peace, health and safety.

3. Strict compliance with local building approval procedures and/or state or local housing, health, habitability, planning and zoning, or safety standards, procedures, and laws in existence at the time of adoption of this ordinance will prevent, hinder, or delay the City’s efforts to mitigate the effects of its declared Shelter Crisis through:
4915-9294-8600 v1 4
(a) expense and time necessary to obtain the required permits and design suitable structures;
(b) restricted development patterns under existing zoning code requirements; (c) delay and staff resources necessary to satisfy the City’s Site Plan and Architectural Review process; and
(d) limits on the locations where the City can place homeless shelters.

DIVISION 2. ADOPTION OF LOCAL STANDARDS AND PROCEDURES DURING SHELTER CRISIS.

Purpose and Scope.

The purpose of this Division is to establish reasonable local standards and procedures for the design, site development, and operation of homeless shelters, as defined in this Division, located on City-owned or leased property within the City of San Rafael during the period in which a shelter crisis is declared under California Government Code Sections 8698 through 8698.4 and Resolution No. [XXXX], adopted by the City Council on November 17, 2025. These standards provide flexibility for the City to act quickly to protect the health and safety of unsheltered individuals while maintaining essential requirements for public health, sanitation, and safety.

Definitions.
“Homeless shelter” means overnight sleeping accommodations, the primary purpose of which is to provide temporary shelter for the homeless. A homeless shelter may include supportive and self-sufficiency development services.

Establishment of Homeless Shelters on City-Owned or Leased Property

1. Notwithstanding any provisions of this Division to the contrary, during any period for which the City Council has declared a shelter crisis within the meaning of Government Code Sections 8698 et seq., a homeless shelter (as defined in this section) may be constructed, established and operated on property owned or leased by the City of San Rafael as a use by right.

2. Pursuant to Government Code Section 8698.4, the City Manager or her designee is authorized to suspend any housing, health, habitability, planning and zoning, or safety standards, procedures, or laws as applied to a City homeless shelter as defined in this Division, except all such projects must comply with the 2019 California Residential Code Appendix X, and California Building Code Appendix O, and any future standards adopted by the Department of Housing and Community Development related to emergency housing or emergency housing facilities. The City Manager, or her designee is authorized to take any other actions consistent with and/or necessary for the implementation of this ordinance.

3. Homeless shelters constructed or allowed under this section shall not be subject to the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), the Mobilehome 4915-9294-8600 v1 5
Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), or the Recreational Vehicle Park Occupancy Law (Chapter

2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), except that disposition of any vehicle or its contents abandoned by its owner shall be performed pursuant to Chapter 5 (commencing with Section 1980) of Title 5 of Part 4 of Division 3 of the Civil Code.

DIVISION 3. FILING WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.

Consistent with Government Code Section 8698.4(a)(2)(A)(i), the City Clerk shall file a copy of this Ordinance with the California Department of Housing and Community Development (HCD) within ten business days after its adoption.

DIVISION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

The City Council finds that the adoption of this Ordinance is not a project within the meaning of the California Environmental Quality Act (CEQA), as defined in Public Resources Code Section 21065 and Section 15378(b)(2), (4), and (5) of the CEQA Guidelines.

This Ordinance establishes administrative procedures and standards for the implementation of an existing state program authorized under Government Code Sections 8698 through 8698.4, which does not directly authorize or approve any specific development or physical change in the environment.

Further, the adoption of this Ordinance is exempt from CEQA under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of this Ordinance, or its implementation, will have a significant effect on the environment.

Finally, adoption of this Ordinance is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage.

DIVISION 5. SEVERABILITY.

If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, or phrase of it, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid.

DIVISION 6. EFFECTIVE DATE; PUBLICATION.

This Ordinance is declared to be an urgency measure adopted pursuant to California Government Code Section 36937(b) and is necessary for the immediate preservation of the public peace, health, and safety.
4915-9294-8600 v1 6
The facts constituting the urgency are set forth in the findings above, which demonstrate that a significant number of persons in the City of San Rafael are without the ability to obtain shelter, creating a continuing threat to their health and safety. Immediate action is required to authorize the City to implement temporary emergency shelters and low-barrier navigation centers to mitigate these threats.

Accordingly, this Ordinance shall take effect and be in full force immediately upon its adoption by at least a four-fifths (4/5) vote of the City Council.

A summary of this Ordinance shall be published, and a certified copy of the full text shall be posted in the office of the City Clerk at least five (5) days prior to the City Council meeting at which it is adopted.

The summary of this Ordinance shall also be published within fifteen (15) days after its adoption, together with the names of the Councilmembers voting for and against it, in the Marin Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, Marin County, State of California.

Within fifteen (15) days after adoption, the City Clerk shall post a certified copy of the full text of this Ordinance in the office of the City Clerk along with the names of those Councilmembers voting for and against it.
______________________
KATE COLIN, Mayor
ATTEST:
______________________
LINDSAY LARA, City Clerk
The foregoing Ordinance No. ____ was adopted at a Regular Meeting of the City Council of the City of San Rafael, held on the ___ day of ___ 20__ by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________
LINDSAY LARA, City Clerk
4929-8163-7239 v2 1
ORDINANCE NO.

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL

ADOPTING REASONABLE LOCAL STANDARDS AND PROCEDURES FOR HOMELESS SHELTERS PURSUANT TO GOVERNMENT CODE SECTIONS 8698, ET SEQ; CEQA DETERMINATION: NOT A PROJECT PER GOVERNMENT CODE SECTIONS 65660(b), 65662; CEQA GUIDELINE 15378(b)(2), (4), (5); ALTERNATIVELY EXEMPT PURSUANT TO CEQA GUIDELINES 15061(b)(3) [COMMON SENSE]; 15269(c) [EMERGENCY] WHEREAS, the City of San Rafael (City) and Marin County lack both housing supply and affordable housing. The City’s 2023-2031 Housing Element, the Marin County Civil Grand Jury’s 2024-2025 report titled “The Worrisome Future of Marin Housing,” and Rooted in Marin, a 2025 analysis of anti-displacement strategies for Marin County, document these unfortunate realities, as well as the negative consequences of insufficient housing opportunities; and WHEREAS, for instance, the Rooted in Marin report noted that Marin County has the third highest median rental rate in California and the cost of purchasing an average home is more expensive in Marin County than every metropolitan area other than the San Jose Metro Area (Rooted in Marin p.20); and
WHEREAS, as a result, roughly three in five Marin renter households are cost-burdened, meaning they dedicate more than 30 percent of their income on housing (Rooted in Marin p.21); and
WHEREAS, the lack of new housing stock has led to rising Marin County median housing prices, which increased by over $1 million in the eight-year period between 2013 to 2021, from $966,000 to $1.91 million, a 98 percent increase (The Worrisome Future of Marin Housing, p.9); and
WHEREAS, over that same period median household income in Marin County only increased by 45 percent; and
WHEREAS, the high cost of housing in Marin County is largely due to a lack of housing supply, which is the result of a dearth of housing construction in recent decades; and WHEREAS, the adopted San Rafael 2023-2031 Housing Element (Housing Element) states that San Rafael had 1,247 vacant units in 2010 and 1,163 vacant units in 2020.10 As a percentage of total housing stock, the vacancy rate declined from 5.2 percent in 2010 to 4.7 percent in 2020. This is lower than the vacancy rate in Marin County, which was 7.2 percent in 2010 and 6.6 percent in 2020.; and
WHEREAS, the Housing Element found that San Rafael renters are considerably costburdened (spending more than 30 percent of one’s income on housing) with 55 percent of San Rafael renters being cost-burdened and 21 percent of San Rafael’s renter households being severely cost-burdened (spending more than 50 percent of their income on housing); and 4929-8163-7239 v2 2
WHEREAS, the 2024 Marin County Point-in-Time Count identified 1,090 individuals experiencing homelessness countywide, with 788 unsheltered. San Rafael had 326 individuals experiencing homelessness, including 264 unsheltered; and WHEREAS, per Marin County Health and Human Services, the County’s homelessness response system currently supports approximately 235 shelter beds across multiple sites, including individual, family, youth, domestic violence survivor, and temporary emergency response shelters, as well as 108 transitional housing beds. These available beds fall far short of meeting the need identified in the 2024 Count; and
WHEREAS, further highlighting the need for emergency shelter beds, over the last three years, the Ritter Center, which is one of the largest non-profits in Marin County serving the unhoused community, found that only one out of four individuals they referred to shelter were accepted.

WHEREAS, since the implementation of Ordinance 2040 (Camping Ordinance) in October 2024, which coincided with the opening of the City’s Sanctioned Camping Area, the City has actively tracked homelessness-related Calls for Service (CFS) to assess enforcement impacts and public safety outcomes; and
WHEREAS, the data shows that along the Mahon Creek Path, CFS decreased by over 80% between FY 2023–24 and FY 2024–25 (256 to 49), and) and calls along Andersen Drive and Lindaro Street fell by more than 50% (65 to 32); and
WHEREAS, these reductions demonstrate the effectiveness of targeted outreach, proactive site management, and the City’s engagement with service providers; and WHEREAS, the remaining CFS—primarily medical aid, welfare checks, and other safety-related responses—underscore that individuals who remain unsheltered continue to experience ongoing risks to their health and safety. For example, in the first quarter of FY 25-26 (July-September 2025) the SAFE Team responded to 794 calls for service, with 69% of those calls responding to assist an individual experiencing homelessness; and
WHEREAS, activities carried out at unauthorized encampments may cause additional sanitation, health and safety impacts to the surrounding community and natural environment; and
WHEREAS, the complexity and magnitude of the homelessness crisis and the limited supply of affordable permanent housing in the city of San Rafael demonstrate that there is a significant and immediate need for interim housing in the city, including emergency shelter and low barrier navigation center, to protect the life, health, and safety of people experiencing homelessness; and
WHEREAS, strict compliance with the provisions of state and local regulatory statutes, regulations, and ordinances prescribing standards of housing, health, safety, and environmental impact assessment may prevent, hinder, or delay emergency housing measures that could be expedited through a Declaration of Shelter Crisis; and
4929-8163-7239 v2 3
WHEREAS, pursuant to California Government Code Sections 8698 through 8698.4 (“Shelter Crisis Act”), local jurisdictions may declare a shelter crisis when a significant number of residents are without shelter and the situation presents a threat to their health and safety; and WHEREAS, the Shelter Crisis Act authorizes jurisdictions to adopt reasonable local standards to expedite shelter development, including both emergency shelters and low barrier navigation centers, while ensuring protection of health, safety, and sanitation; and WHEREAS, on November 17, 2025, the San Rafael City Council adopted Resolution No. [XXXX] declaring a shelter crisis, finding that the number of individuals in San Rafael without shelter constitutes a threat to their health and safety, and directing staff to return with an ordinance establishing reasonable local standards and procedures consistent with Government Code Section 8698; and
WHEREAS, the City Council finds that immediate action is necessary to protect life, health, and safety by enabling the City to promptly implement homeless shelters that meet reasonable health and safety standards; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. FINDINGS

2. The facts contained in the above recitals, the Shelter Crisis that has been declared in the City of San Rafael pursuant to Resolution No. xxx. adopted on November 17, 2025, and Ordinance No. xx conclusively demonstrate the urgent need to adopt this ordinance for the immediate preservation of the public peace, health and safety.

3. Strict compliance with local building approval procedures and/or state or local housing, health, habitability, planning and zoning, or safety standards, procedures, and laws in existence at the time of adoption of this ordinance will prevent, hinder, or delay the City’s efforts to mitigate the effects of its declared Shelter Crisis through:
a. expense and time necessary to obtain the required permits and design suitable structures;
b. restricted development patterns under existing zoning code requirements; 4929-8163-7239 v2 4
c. delay and staff resources necessary to satisfy the City’s Site Plan and Architectural Review process; and
d. limits on the locations where the City can place homeless shelters.

DIVISION 2. ADOPTION OF LOCAL STANDARDS AND PROCEDURES DURING SHELTER CRISIS.

A. Purpose and Scope.

The purpose of this Division is to establish reasonable local standards and procedures for the design, site development, and operation of homeless shelters, as defined in this Division located on City-owned or leased property within the City of San Rafael during the period in which a shelter crisis is declared under California Government Code Sections 8698 through 8698.4 and Resolution No. [XXXX], adopted by the City Council on November 17, 2025. These standards provide flexibility for the City to act quickly to protect the health and safety of unsheltered individuals while maintaining essential requirements for public health, sanitation, and safety.

B. Definitions.
“Homeless shelter” means overnight sleeping accommodations, the primary purpose of which is to provide temporary shelter for the homeless. A homeless shelter may include supportive and self-sufficiency development services..

C. Establishment of Homeless shelters on City-Owned or Leased Property

3. Homeless shelters constructed or allowed under this section shall not be subject to the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), or the Recreational Vehicle Park Occupancy Law (Chapter

2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), 4929-8163-7239 v2 5
except that disposition of any vehicle or its contents abandoned by its owner shall be performed pursuant to Chapter 5 (commencing with Section 1980) of Title 5 of Part 4 of Division 3 of the Civil Code.

DIVISION 3. FILING WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.

DIVISION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

Finally, adoption of this Ordinance is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage.

DIVISION 5. SEVERABILITY.

DIVISION 6. EFFECTIVE DATE; PUBLICATION.

A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the Council meeting at which it is adopted.

This Ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this Ordinance shall be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in the Marin 4929-8163-7239 v2 6
Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, Marin County, State of California.

Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk a certified copy of the full text of this Ordinance, along with the names of those Councilmembers voting for or against the Ordinance.
______________________
KATE COLIN, Mayor
ATTEST:
______________________
LINDSAY LARA, City Clerk
The foregoing Ordinance No. ____ was adopted at a Regular Meeting of the City Council of the City of San Rafael, held on the ___ day of ___ 20__ by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________
LINDSAY LARA, City Clerk
4915-0440-7928 v1 1
RESOLUTION NO.

A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A

GRANT AGREEMENT BETWEEN THE CITY AND COUNTY OF MARIN IN THE AMOUNT OF $8 MILLION AND AFFORDABLE HOUSING AGREEMENT IN A FORM TO BE APPROVED BY

THE CITY ATTORNEY TO FACILITATE THE ACQUISITION OF THE REAL PROPERTY LOCATED AT 350 MERRYDALE ROAD (APNS 179-041-27 & 179-041-28) FOR USE AS AN

INTERIM SHELTER AND PERMANENT AFFORDABLE HOUSING AND TO ACCEPT THE FULL AMOUNT OF THE GRANT AND APPROPRIATE $7.0 MILLION TO COVER COSTS RELATED TO ACQUISITION; CEQA DETERMINATION: NOT A PROJECT PER GOVERNMENT CODE SECTIONS 8698.4(a)(4); 65660(b), 65662; PUBLIC RESOURCES CODE SECTION 21080(b)(1)[MINISTERIAL PROJECT]; CEQA GUIDELINE 15268(b) [MINISTERIAL PROJECT]; EXEMPT PURSUANT TO CEQA PUBLIC RESOURCES CODE SECTION 15183 [CONSISTENT WITH GENERAL PLAN POLICIES]; CEQA GUIDELINES 15269(c) [EMERGENCY]; 15332 [INFILL]
WHEREAS, the City of San Rafael faces a lack of housing supply and affordable housing, as documented in the City’s 2023-2031 Housing Element, the Marin County Civil Grand Jury’s 2024-2025 report titled “The Worrisome Future of Marin Housing,” and Rooted in Marin, a 2025 analysis of anti-displacement strategies for Marin County; and WHEREAS, the City has adopted housing specific goals, policies, and programs to address the lack of housing supply and affordable housing; and WHEREAS, on May 15, 2023 the San Rafael City Council adopted Resolution No. 15215, adopting the City’s 2023-2031 Housing Element; and
WHEREAS, the Housing Element’s Housing Action Plan included Goal H-1:

Homelessness: End and prevent homelessness in San Rafael as well as Goal H-4: Housing Choice: Meet housing needs through a range of housing choices and affordability levels throughout the city; and
WHEREAS, the Housing Action Plan identified policies to advance its goals, including:
• Policy H-1.1: Collaboration and Coordination
o Work with the County of Marin, local supportive service providers, and housing and social justice organizations to assist persons experiencing homelessness. • Policy H-1.2: Transitional and Supportive Housing
o Support permanent supportive housing for those who are unhoused or at risk of losing their housing.
• Policy H-1.3: Emergency Shelters
o Allow for emergency shelters in appropriate zoning districts in order to accommodate San Rafael’s unsheltered population.
• Policy H-4.1: Equitable Distribution of Affordable Housing o Encourage the creation of affordable housing opportunities in all parts of the city, including areas where such housing does not exist today. • Policy H-4.4: Affordability of Projects on Public Land o Prioritize the development of affordable housing rather than market rate units on surplus public land.
• Policy H-4.14: Commercial to Residential Conversion
4915-0440-7928 v1 2
o Encourage the adaptive reuse of older commercial buildings, including office and retail buildings, for housing; and
WHEREAS, on June 2, 2025 the San Rafael City Council adopted Resolution No. 15420 to adopt the City’s Three-Year Strategic Plan for Fiscal Years 2025-2028; and WHEREAS, the Strategic Plan included Priority Area D: Housing and Homelessness:

Facilitate new housing development, assist in ensuring housing stability, support a “Housing First” model, and implement strategies that reduce homelessness; and WHEREAS, the Strategic Plan Priority Area D includes Goal D.1.1: In collaboration with the County of Marin, explore the implementation of a housing-focused interim shelter program, supported by robust case management services to assist in transitioning unhoused community members into permanent supportive housing, or other permanent housing solutions; and WHEREAS, the Strategic Plan Priority Area D also includes Goal D.1.4: Strategically increase and secure additional funding sources by leveraging key partnerships that will support additional programs that reduce homelessness; and
WHEREAS, the Strategic Plan further includes Goal D.2: Advance the development of new housing across all affordability levels to meet the stat’s regional housing needs allocation (RHNA) requirements as outlined in the City’s Housing Element, ensuring diverse, sustainable, and equitable housing opportunities for all residents; and WHEREAS, as part of the City’s Equity, Diversity and Inclusion Element, San Rafael’s 2040 General Plan includes Goal EDI-3: Housing Stability: Improve housing stability for all San Rafael residents, particularly those with low or very low incomes; and WHEREAS, in 2025 the County of Marin coordinated Rooted in Marin, an analysis of housing in Marin County and strategies for anti-displacement; and WHEREAS, the Rooted in Marin report found that the lack of housing supply and affordable housing in Marin County have led to sustained population loss since 2018, particularly of low-income households making less than 50 percent of the area median income (AMI), as well as increased greenhouse gas emissions from workers commuting to Marin County, and lost economic opportunities due to people not being able to afford living in Marin County; and WHEREAS, in the spring of 2025, Newmark informed the City about an opportunity to to purchase the 2.5 acres property located at 350 Merrydale Road/3833 Redwood Highway, Assessor’s Parcel Number (APN): 179-041-27 and 179-041-28 (hereinafter referred to as “Property”), which had been placed on the open market for sale by its owners; and WHEREAS, on November 17, 2025, the City Council adopted a resolution declaring a Shelter Crisis pursuant to the Shelter Crisis Act (Gov. Code section 8698 et seq.) 4915-0440-7928 v1 3
WHEREAS, the City now desires to acquire and use the Property for an interim shelter, which includes a low barrier navigation center, to provide shelter to up to 65 individuals at a given time, with good faith efforts to prioritize placement of unhoused individuals located at the City’s current Sanctioned Camping Area, followed by the Andersen Road Encampment, and then other encampments in the City at the interim shelter on the Property; and WHEREAS, the City later intends to use the Property for up to 80 units of permanent affordable housing, and the City will make a good faith effort to keep affordability levels as low as possible dependent on funding and other factors developed in the project’s proforma; and WHEREAS, to advance the goals of reducing homelessness and providing more affordable housing opportunities, the City and County of Marin (“County”) have agreed to partner on the acquisition of 350 Merrydale, which will serve initially as an interim shelter for unhoused individuals and subsequently a permanent affordable housing development project, with the County providing an $8 million grant (“Grant”) for the acquisition of the Property to use it as an interim shelter and permanent affordable housing, allowing the use of the City and County’s State Encampment Resolution Fund- Round 3 Grant to operate an interim shelter; and WHEREAS, at its November 18, 2025, meeting, the Board of Supervisors will consider authorizing the making of the Grant based on the terms and conditions as set forth in the Grant Agreement and the Affordable Housing Agreement attached to the accompanying staff report; and
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of San Rafael as follows:

1. Findings:
a. Based upon the accompanying staff report, its attachments, the staff presentation and written and verbal comment submitted before and during the public hearing, the City Council finds the foregoing recitals true and correct. b. California Environmental Quality Act (“CEQA”). Upon declaration of a shelter crisis, CEQA does not apply to financial assistance or an encumbrance of land owned by a local government for a homeless shelter. (Cal. Gov. Code Sec. 8694(a)(4).) Further, execution of the Grant Agreement and Affordable Housing Agreement is exempt from CEQA review pursuant to CEQA Guideline 15061(b)(3), because it can be seen with certainty that there is no possibility that their execution may have a significant effect on the environment. The underlying projects, a temporary homeless shelter or low barrier navigation center are both uses by right and therefore ministerial projects not subject to CEQA, pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines section 15268(b). (See also Gov. Code Sec. 65660(b), 65662.) The proposed interim shelter and future affordable housing project are also exempt from CEQA pursuant to Public Resources Code sections 15183 (Community Plan Exemption) and 15332 (Class 32 Infill), as detailed in the attached CEQA memo (Attachment 7). Finally, adoption of this Resolution is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage. 4915-0440-7928 v1 4

2. The City Manager is authorized to negotiate and execute the grant agreement in the amount of $8 million with the County of Marin and the Affordable Housing Agreement with the County of Marin in a form to be approved by the City Attorney or designee to facilitate the acquisition of the Property for use as an interim shelter and permanent affordable housing; and

3. The City Manager is authorized to accept the full amount of the Grant and to appropriate $7 million, to cover costs related to acquisition of the Property; and

4. The City Manager or designee is authorized to take any action necessary or incidental to carrying out the intention of this Resolution.

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

____________________
Lindsay Lara, City Clerk
4926-0427-1479 v5 1
RESOLUTION NO.

A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A PURCHASE AND SALE AGREEMENT IN THE AMOUNT OF $6.7 MILLION, PLUS ASSOCIATED COSTS; TO EXECUTE A CERTIFICATE OF ACCEPTANCE AND OTHER

DOCUMENTS NECESSARY TO COMPLETE THE PURCHASE OF THE REAL PROPERTY LOCATED AT 350 MERRYDALE ROAD; AND TO EXECUTE A PROFESSIONAL SERVICES

WHEREAS, the City of San Rafael (“City”) faces a lack of housing supply and affordable housing, as documented in the City’s 2023-2031 Housing Element, the Marin County Civil Grand Jury’s 2024-2025 report titled “The Worrisome Future of Marin Housing,” and Rooted in Marin, a 2025 analysis of anti-displacement strategies for Marin County; and WHEREAS, the City has adopted housing specific goals, policies, and programs to address the lack of housing supply and affordable housing; and WHEREAS, on May 15, 2023 the City Council of the City adopted Resolution No. 15215, adopting the City’s 2023-2031 Housing Element; and
WHEREAS, the Housing Element’s Housing Action Plan included Goal H-1:

Homelessness: End and prevent homelessness in San Rafael as well as Goal H-4: Housing Choice: Meet housing needs through a range of housing choices and affordability levels throughout the city; and
WHEREAS, the Housing Action Plan identified policies to advance its goals, including:
• Policy H-1.1: Collaboration and Coordination
o Work with the County of Marin, local supportive service providers, and housing and social justice organizations to assist persons experiencing homelessness. • Policy H-1.2: Transitional and Supportive Housing
o Support permanent supportive housing for those who are unhoused or at risk of losing their housing.
• Policy H-1.3: Emergency Shelters
o Allow for emergency shelters in appropriate zoning districts in order to accommodate San Rafael’s unsheltered population.
• Policy H-4.1: Equitable Distribution of Affordable Housing o Encourage the creation of affordable housing opportunities in all parts of the city, including areas where such housing does not exist today. • Policy H-4.4: Affordability of Projects on Public Land 4926-0427-1479 v5 2
o Prioritize the development of affordable housing rather than market rate units on surplus public land.
• Policy H-4.14: Commercial to Residential Conversion
o Encourage the adaptive reuse of older commercial buildings, including office and retail buildings, for housing; and
WHEREAS, on June 2, 2025 the San Rafael City Council adopted Resolution No. 15420 to adopt the City’s Three-Year Strategic Plan for Fiscal Years 2025-2028; and WHEREAS, the Strategic Plan included Priority Area D: Housing and Homelessness:

Facilitate new housing development, assist in ensuring housing stability, support a “Housing First” model, and implement strategies that reduce homelessness; and WHEREAS, the Strategic Plan Priority Area D includes Goal D.1.1: In collaboration with the County of Marin, explore the implementation of a housing-focused interim shelter program, supported by robust case management services to assist in transitioning unhoused community members into permanent supportive housing, or other permanent housing solutions; and WHEREAS, the Strategic Plan Priority Area D also includes Goal D.1.4: Strategically increase and secure additional funding sources by leveraging key partnerships that will support additional programs that reduce homelessness; and
WHEREAS, the Strategic Plan further includes Goal D.2: Advance the development of new housing across all affordability levels to meet the stat’s regional housing needs allocation (RHNA) requirements as outlined in the City’s Housing Element, ensuring diverse, sustainable, and equitable housing opportunities for all residents; and WHEREAS, as part of the City’s Equity, Diversity and Inclusion Element, San Rafael’s 2040 General Plan includes Goal EDI-3: Housing Stability: Improve housing stability for all San Rafael residents, particularly those with low or very low incomes; and WHEREAS, in 2025 the County of Marin coordinated Rooted in Marin, an analysis of housing in Marin County and strategies for anti-displacement; and WHEREAS, the Rooted in Marin report found that the lack of housing supply and affordable housing in Marin County have led to sustained population loss since 2018, particularly loss of low-income households making less than 50 percent of the area median income (AMI), as well as increased greenhouse gas emissions from workers commuting to Marin County, and lost economic opportunities due to people not being able to afford living in Marin County; and WHEREAS, the City has utilized the real estate brokerage services of Cornish & Carey Commercial (d/b/a Newmark) to locate a property with a willing seller, which City could purchase to use as an interim shelter and/or permanent affordable housing within the City limits in fulfillment of City goals; and
4926-0427-1479 v5 3
WHEREAS, Newmark is a real estate brokerage firm, providing a full range of commercial real estate services to its clients, and is located in San Rafael, with specific knowledge of the San Rafael real estate market; and
WHEREAS, the purchase of real estate requires specialized knowledge best provided by licensed real estate professionals; and
WHEREAS, in the spring of 2025, Newmark informed the City about the opportunity to purchase 2.5 acres of property located at 350 Merrydale Road/3833 Redwood Highway and identified as Marin County Assessor’s Parcel Number (APN): 179-041-27 and 179-041-28 (hereinafter referred to as “Property”) shortly after the Property was listed for sale; and WHEREAS, Ridgewood Properties Partnership, LLC, a California Limited Liability Company and Merrydale-Clayton LLC, a California Limited Liability Company (collectively, “Owners”) presently own the Property,
WHEREAS, City retained a certified appraiser to prepare an appraisal of the Property for the City;
WHEREAS, staff has negotiated a Purchase and Sale Agreement and Joint Escrow Instructions (“Purchase and Sale Agreement”) with the Owners; WHEREAS, the purchase price for the Property is consistent with its appraised fair market value; and
WHEREAS, the City intends to use the Property for an interim shelter, which includes a low barrier navigation center, to provide shelter to 65 individuals at a given time, with good faith efforts to prioritize placement of unhoused individuals located at the City’s current Sanctioned Camping Area, followed by the Andersen Road Encampment, and then other encampments in the City at the interim shelter on the Property; and
WHEREAS, the City also intends to use the Property for 80 units of permanent affordable housing, and the City will make a good faith effort to keep affordability levels as low as possible dependent on funding and other factors developed in the project’s proforma; and WHEREAS, on November 4, 2025, the City’s Planning Commission adopted Planning Commission Resolution No. 25-07, rendering a report that the City’s acquisition of the Property conformed with the City’s General Plan; and
WHEREAS, to advance the goals of reducing homelessness and providing more affordable housing opportunities, the City and County of Marin (“County”) have agreed to partner on the acquisition of the Property, which will serve initially as an interim shelter for unhoused individuals and subsequently a permanent affordable housing development project, with the County providing an $8 million grant (“Grant”) to finance City’s purchase of the Property and 4926-0427-1479 v5 4
WHEREAS, to use the Property as an interim shelter and permanent affordable housing, allowing the use of the City and County’s State Encampment Resolution Fund- Round 3 Grant to operate an interim shelter; and
WHEREAS, at its November 18, 2025, meeting, the County’s Board of Supervisors will consider authorizing the making of the Grant based on the terms and conditions as set forth in the Grant Agreement and the Affordable Housing Agreement attached to the accompanying staff report; and
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of San Rafael as follows:

1. Findings:
a. Based upon the accompanying staff report, its attachments, the staff presentation and written and verbal comment submitted before and during the public hearing, the City Council finds the foregoing recitals true and correct. b. California Environmental Quality Act (“CEQA”). Upon declaration of a shelter crisis, CEQA does not apply to financial assistance or conveyance by a local government for a homeless shelter. (Cal. Gov. Code Sec. 8698.4(a)(4).) Further, the underlying projects, a temporary homeless shelter or low barrier navigation center, are both uses by right and therefore ministerial projects not subject to CEQA, pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines section 15268(b) (see also Gov. Code sections 65660(b), 65662). The proposed future affordable housing project is also exempt from CEQA pursuant to Public Resources Code sections 15183 (Community Plan Exemption) and 15332 (Class 32 Infill). Approval of the brokerage agreement does not constitute a project pursuant to CEQA Guideline 15378(b)(4), and even if it did constitute a project, approval of the brokerage agreement is exempt from CEQA pursuant 15061(b)(3) under common sense that it can be seen that the brokerage agreement will not result in an impact to the environment. Finally, adoption of this Resolution is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage. The procurement of professional services by Newmark is exempt from competitive bidding pursuant to San Rafael Municipal Code Section 2.55.100.D and Newmark has demonstrated the competence and the necessary real estate license to render real estate brokerage services.

2. The purchase price for the Property is consistent with the appraiser’s determination of the fair market value of the Property;

3. Contingent upon the County authorizing execution of the County Grant Agreement at its November 18, 2025 meeting, the City Manager is authorized to negotiate and execute the Purchase and Sale Agreement for the Property, subject to such further minor conforming, technical or clarifying changes or revisions as may be agreed to and approved by the City Manager and City Attorney, which do not materially increase the obligations of the City thereunder, and to execute said Purchase and Sale Agreement for the Property after the Court hears the application for an ex parte order filed on November 12, 2025, by the petitioners/plaintiffs in Ken Dickinson,et al. v City of San Rafael, et al., Marin Superior Court Case No. CV 008170, provided the Court 4926-0427-1479 v5 5
rules on the application for the ex parte order on or before November 24, 2025; if the Court does not rule on the application for the ex parte order by 5:00 p.m. on November 24, 2025, and the County has authorized the execution of the County Grant Agreement, upon the recommendation of the City Attorney, the City Manager is authorized to sign the Purchase and Sale Agreement; and

4. Contingent upon the County authorizing execution of the County Grant Agreement at its November 18, 2025 meeting, the City Manager is authorized to execute ancillary documents that are necessary to compete the purchase, including a certificate of acceptance of a Grant Deed of the Property, each in a form approved by the City Attorney or designee; and

5. Contingent upon the County authorizing execution of the County Grant Agreement at its November 18, 2025 meeting, the City Manager is authorized to execute the professional services agreement with Cornish and Carey Commercial (doing business as Newmark) for real estate brokerage services rendered to the City for the City’s purchase of the Property in an amount not to exceed $201,000, and to execute said professional services agreement after the Court hears the application for an ex parte order filed on November 12, 2025, by the petitioners/plaintiffs in Ken Dickinson,et al. v City of San Rafael, et al., Marin Superior Court Case No. CV 008170, provided the Court rules on the application for the ex parte order on or before November 24, 2025; if the Court does not rule on the application for the ex parte application by 5:00 p.m. on November 24, 2025, and the County has authorized the execution of the County Grant Agreement, upon the recommendation of the City Attorney, the City manager is authorized sign the professional services agreement; and

6. Contingent upon the County authorizing execution of the County Grant Agreement at its November 18, 2025 meeting, the City Manager or designee is authorized to take any action necessary or incidental to carrying out the intention of this Resolution, including, but not limited to, repayment of the $155,341.80 amount Sellers paid to Las Gallinas Valley Sanitary District within one (1) year after the close of escrow, payment of transaction costs which are customary for a buyer to pay and performing City’s obligations under the Purchase and Sale Agreement.

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

____________________
Lindsay Lara, City Clerk

4912-4970-3031 v1

CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) EXEMPTION REVIEW
350 MERRYDALE INTERIM SHELTER AND AFFORDABLE

HOUSING DEVELOPMENT PROJECT
APN(s): 179-041-27 and 179-041-28
November 3, 2025
City of San Rafael
Community and Economic Development Department
1400 Fifth Avenue, Top Floor
San Rafael, CA 94901
4912-4970-3031 v1
Table of Contents
I. SUMMARY.................................................................................................................................... 3 II. PROJECT SITE............................................................................................................................. 3 III. PROJECT DESCRIPTION ......................................................................................................... 5 IV. CEQA PROCESS .......................................................................................................................... 8 V. DOCUMENTS INCORPORATED BY REFERENCE........................................................... 9 VI. CEQA GUIDELINES SECTION 15183 EXEMPTION....................................................10 VII. CEQA GUIDELINES SECTION 15332 EXEMPTION....................................................14 VIII. CONCLUSION...........................................................................................................................32 IX. REFERENCES...........................................................................................................................33 4912-4970-3031 v1
I. SUMMARY

The proposed project (“Project”) is an infill development located at 350 Merrydale Road and 3833 Redwood Highway in the City of San Rafael. As part of a collaboration between the County of Marin and the City of San Rafael (City) to address homelessness and the lack of affordable housing, the project proposes the acquisition of a 2.5-acre property to serve as an Interim Shelter for up to 65 unhoused individuals on a temporary basis followed by a permanent affordable housing development of up to 80 units. The project site was last used as an adult school serving approximately 100 individuals, but the project site has been vacant for at least five years. In 2020, the property owners received land use approvals for 45 for sale townhomes but the property owners did not proceed with construction activities and earlier this year placed the property for sale.

The City prepared this CEQA Exemption Memorandum to serve as the technical documentation of an environmental analysis prepared for the Project. As demonstrated in the memorandum, the Project qualifies for a Categorial Exemption under CEQA Section 15183 as the Project is consistent with the development density established by existing zoning and general plan policies associated with the certified City of San Rafael 2040 General Plan. The Project also qualifies for a Categorical Exemption under CEQA Section 15332 (Infill Development) as the Project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations, is located within city limits on a project site of no more than 5 acres substantially surrounded by urban uses; the project site has no value, as habitat for endangered, rare or threatened species; approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and the site can be adequately served by all required utilities and public services.”

II. PROJECT SITE
The project site is located at 350 Merrydale Road and comprises 2.5 acres of land located just west of the US Highway 101 transportation corridor in northern San Rafael, approximately two miles north of downtown. The property has two physical addresses: 350 Merrydale Road and 3833 Redwood Highway, San Rafael. The property is recorded by the Marin County Assessor as Assessor’s Parcel Numbers (APN) 179-041-27 and 179-041-28. The property is zoned Planned Development (PD) District under the City’s zoning ordinance and currently consists of three singlestory buildings, most recently occupied by an adult school. The existing buildings are separated by small courtyards and surrounded by an asphalt-surfaced parking lot.

In terms of surrounding land uses, commercial businesses adjoin the property to the north and south; a residential apartment building also adjoins to the south, along Merrydale Road. A residential subdivision is located west across Merrydale and the US Highway 101 corridor is adjacent to the east side of the project site. The project 4912-4970-3031 v1
site is approximately half a mile from the Sonoma-Marin Area Rail Transit (SMART) Marin Civic Center Station.

Table 1. Project Characteristics
Address/Location: 350 Merrydale Road
and 3833 Redwood
Highway
Parcel Number(s): 179-041-27 and 179-
041-28
Property Size: 2.5 acres Neighborhood: Terra Linda
Site Characteristics
General Plan
Designation
Zoning District Existing Land-Use
Project Site: Community
Commercial Mixed
Use (GC)
Planned
Development
District (PD)
Educational
North: Office Mixed Use
(OMU)
Planned
Development
District (PD)
Commercial
South: High Density
Residential (HR) and
Community
Commercial Mixed
Use (GC)
High Density
Residential (HR)
and General
Commercial (GC)
Residential/Commercia
l
East: US 101 Highway US 101 Highway US 101 Highway
West: Low Density
Residential (LDR)
Single-Family
Residential (R7.5)
Residential
4912-4970-3031 v1
Figure 1 – Vicinity Map
III. PROJECT DESCRIPTION
In partnership with the County of Marin, the Project proposes acquiring the site for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development as outlined below:
• Interim Shelter Operations
o City and County will split the operating costs until June 30, 2027. o Up to two extensions beyond June 30, 2027, based on available funding per a City-led fundraising campaign, in collaboration with the County. o Site closure no later than June 30, 2029.
o Maximum of 65 individuals will be served at any one time. Through program attrition and contingent upon available funding, no more than 70 unique individuals may be eligible to participate in the program with priority placement given in this order; (1) current Sanctioned Camping Area participants, (2) Andersen Road Encampment; (3) other encampments in the City of San Rafael.
o No new entries within one year of anticipated closure unless adequate funding is secured.
4912-4970-3031 v1
• Affordable Housing Development
o City to entitle property for up to 80 units of affordable housing by June 30, 2028.
o City will make good faith effort to keep affordability levels as low as possible.
o County will contribute $100,000 per entitled unit, up to 80 units; If less than 80 units are entitled, the City will refund the County $100,000 per unit.
o If the property is not entitled by June 30, 2028, or the City otherwise defaults on the Agreement, the City must reimburse the County.

General Plan Designation: The project site is designated Community Commercial Mixed Use (21.8-43.6 units/net acre; maximum FAR 0.3). This category corresponds to general retail and service uses, restaurants, automobile sales and service uses, hotels/ motels, and other commercial activities. Offices are also permitted, except where specifically precluded by General Plan policies. Mixed use projects that combine housing and commercial uses are encouraged. Projects that are entirely residential are permitted, although limitations may apply in certain zoning districts to ensure that adequate land is provided for activities generating sales tax, jobs, and local service opportunities. Residential development is subject to a maximum net density of 43.6 units per acre. The FAR limit of 0.3 applies to non-residential square footage only, and excludes square footage associated with housing in mixed use projects. Lower FAR limits may apply on some parcels, as indicated on Figure 3-2 (Floor Area Ratio map). Areas with this designation include the Northgate Town Center, Merrydale Road area, and portions of Francisco Boulevard East and West.

Zoning District: The site has a Planned Development (PD) zoning classification and the PD was adopted on February 18, 2020 (PD 1979). The purpose of the Planned Development District for the 45-unit residential development is to regulate the development of a 2.28-acre site located at 350 Merrydale Road/3883 Redwood Highway.

The PD permitted: 1) a 45-unit residential condominium development on the 2.28- acre site, a 500 square foot Community Room for tenant use and a “Creek Promenade” area for use as a recreational amenity, as per approved plan Sheet SP-2 and; 2) All other land uses shall follow the land use regulations set forth in the High Density Residential (HR1) District land use classification as contained in Zoning Ordinance (SRMC 14.04.020).

Multifamily Residential Districts: High-Density (HR1, HR1.5, HR1.8) The purpose of the high-density residential district is to provide opportunities for high-density multifamily residential development. High-density multifamily residential districts are included in the high-density residential land use category with densities ranging from one thousand (1,000) square feet to one thousand eight hundred (1,800) square feet per dwelling unit. Allowable land uses are outlined in SRMC Section 14.04.020 - Land use regulations (R, DR, MR, HR, PD). 4912-4970-3031 v1
Pursuant to SRMC Section 14.04.020, “Multifamily residential” is an allowed use in the HR zoning district and no use permit is required. “Emergency shelters for the homeless” is an allowable use in the HR zoning district with a Use Permit. Applicable definitions contained in SRMC Section 14.03.030 (Definitions) can be found below:
"Residential, multifamily" means medium and high density residential development, including a "transitional housing development" or "supportive housing" as defined under State Health and Safety Code Section 50675.2 (and subsequent amendments), containing three (3) or more attached dwelling units in one (1) or more structures located on a single parcel or common lot. "Emergency shelters" means housing as defined under the State Health and Safety Code Section 50801(e); i.e., with minimal supportive services for homeless person(s) that is limited to occupancy of six (6) months or less by a homeless person. No individual or household may be denied emergency shelter because of inability to pay.
"Permanent emergency shelter for the homeless" means a permanent residential facility operated by a provider which provides emergency housing or temporary accommodations year-round to homeless persons and/or families on a nonprofit basis, and which meets the standards for shelters contained in this title. A facility under this section does not include temporary shelter provided by general relief in the wake of a disaster where assistance by the American Red Cross and/or federal disaster relief is provided. "Temporary or rotating emergency shelter for the homeless" means a nonprofit temporary or emergency housing facility for individuals and families authorized to operate up to six (6) consecutive months. A facility under this definition does not include temporary shelter provided by general relief in the wake of a disaster where assistance by the American Red Cross and/or federal disaster relief is provided.

The proposed project entails the acquisition of the project site for future use as an emergency shelter, which is an allowable use with a Use Permit and for future development for affordable housing, which is allowed by right, the project is consistent with the HR zoning district and as allowed under PD 1979.

Future Development
At this time, project specific details of the future affordable housing project are not available; however, CEQA requires the analysis of a reasonable worst-case scenario.

As a result, the following assumptions are being made about the future development.

The maximum future development potential was estimated based on the size of the project site, General Plan maximum density, and development standards for the HR1 zoning district, and additional units allowed under State Density Bonus Law. 4912-4970-3031 v1
Based on the net acreage and the maximum net density (21.8-43.6 units/net acre), the site is anticipated to accommodate approximately 76 units. As the project is anticipated to be a 100 percent affordable housing project, under State Density Bonus Law a density bonus of 80 percent is allowed, therefore, a maximum of 137 units would be allowed. Applicable development standards would be those for the HR-1 zoning district, and therefore it is assumed the future development would maintain a maximum base height of 36 feet.

Gross Area: 2.3 acres
Easements:
• MCFCD 25-foot wide flood control easement - 0.21 acres • MCFCD 15-foot wide maintenance easement - 0.11acres
• City of San Rafael Roadway/Utility easement - (0.25 acres) • Overlap of easements 0.03 acres
Net Area: 1.74 acres
Max General Plan Density: 43.6 units/net acre
Max Density: 76 units
Density Bonus: 80% or 61 allowable density bonus units
Maximum Total Units: 137 units
Future permits would include:
• Environmental and Design Review Permit
• Grading Permit
• Building Permits
IV. CEQA PROCESS
CEQA establishes a three-tier environmental review process. The first step is jurisdictional and requires a public agency to determine whether a proposed activity is a “project” as defined in Section 21065 of the CEQA Guidelines. As provided therein, under CEQA a “project” means an activity that may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and which is any of the following:
a. An activity directly undertaken by any public agency. b. An activity undertaken by a person which is supported, in whole or in part, through contracts, grants, subsidies, loans, or other forms of assistance from one or more public agencies.
c. An activity that involves the issuance to a person of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies. 4912-4970-3031 v1
If an activity is defined as a “project”, the agency must decide whether the project is exempt from CEQA review under either a statutory or categorical exemption, Articles 18 and 19, respectively. If a project is categorically exempt, it is not subject to CEQA and is processed without an initial study or further CEQA review. (Holden v.

City of San Diego [2019] 43 Cal.App.5th 404, 409.)
CEQA provides several “categorical exemptions” that are applicable to categories of projects that the Legislature has determined do not pose a risk of significant impacts on the environment. Here, the Project qualifies for a Categorial Exemption under CEQA Section 15183 as the Project is consistent with the development density established by existing zoning and general plan policies associated with the certified City of San Rafael 2040 General Plan and the infill development exemption pursuant to Title 14 of the California Code of Regulations Section 15332 (“CEQA Guidelines 15332”).

V. DOCUMENTS INCORPORATED BY REFERENCE
The City of San Rafael General Plan Final EIR (State Clearinghouse No 2019039167) has been cited and incorporated by reference into this analysis, in accordance with Section 15150 of the State CEQA Guidelines, as a means of reducing the redundancy and length of this environmental document. The City of San Rafael General Plan Final EIR is available for public online. This document is hereby incorporated by reference into this Initial Study/State CEQA. The following documents have been incorporated into this analysis.

1. City of San Rafael General Plan and EIR, 2021
General Plan Documents - San Rafael
Environmental Review - San Rafael

2. City of San Rafael Housing Element
2023-2031 Housing Element Update - San Rafael

3. City of San Rafael Zoning Code, Title 14
Mini TOC: Title 14 - ZONING* | Code of Ordinances | San Rafael, CA | Municode Library

4. City of San Rafael Subdivision Regulations, Title 15 Mini TOC: Title 15 - SUBDIVISIONS | Code of Ordinances | San Rafael, CA | Municode Library
4912-4970-3031 v1
VI. CEQA GUIDELINES SECTION 15183 EXEMPTION
A. Applicability
California Public Resources Code Section 21083.3 and CEQA Guidelines Section 15183 provides a streamlined environmental review process and a statutory exemption for projects that are consistent with the densities established by existing zoning, community plan, or general plan policies for which an Environmental Impact Report (EIR) was certified. As described in detail below, the Project is consistent with the existing zoning designation for the site and with the City of San Rafael Plan. The City of San Rafael General Plan EIR was certified by the City Council on July 19, 2021, (SCH No. 2019039167). Based on the Project’s consistency with existing zoning and the General Plan, and provided that the General Plan EIR was certified, the project qualifies for streamlined environmental review pursuant to Section 15183 of the CEQA Guidelines.

B. General Plan Consistency
General Plan Land Use Designation
The project site is designated Community Commercial Mixed Use (21.8-43.6 units/net acre; maximum FAR 0.3). This category corresponds to general retail and service uses, restaurants, automobile sales and service uses, hotels/ motels, and other commercial activities. Offices are also permitted, except where specifically precluded by General Plan policies. Mixed use projects that combine housing and commercial uses are encouraged. Projects that are entirely residential are permitted, although limitations may apply in certain zoning districts to ensure that adequate land is provided for activities generating sales tax, jobs, and local service opportunities. Residential development is subject to a maximum net density of 43.6 units per acre. The FAR limit of 0.3 applies to non-residential square footage only, and excludes square footage associated with housing in mixed use projects. Lower FAR limits may apply on some parcels, as indicated on Figure 3-2 (Floor Area Ratio map). Areas with this designation include the Northgate Town Center, Merrydale Road area, and portions of Francisco Boulevard East and West.

The proposed use of the site would be consistent with the General Plan Land Use designation as the project proposes an interim shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. Based on the size of the site (2.29 acres) and the maximum net density (21.8-43.6 units/net acre), the site is anticipated to accommodate approximately 76 base units and up to 137 units with State Density Bonus Law.

General Plan Policies
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An analysis of the Project’s conformity with the applicable General Plan policies is provided in detail in matrix format in the General Plan Conformity Analysis (Attachment 1).

C. Zoning Consistency
The site has a Planned Development (PD) zoning classification and the PD was adopted on February 18, 2020 (PD 1979). The purpose of the Planned Development District for the 45-unit residential development is to regulate the development of a

2.28-acre site located at 350 Merrydale Road/3883 Redwood Highway.

The PD permitted: 1) a 45-unit residential condominium development on the 2.28- acre site, a 500 square foot Community Room for tenant use and a “Creek Promenade” area for use as a recreational amenity, as per approved plan Sheet SP2; and 2) all other land uses shall follow the land use regulations set forth in the High Density Residential HR1) District land use classification as contained in Zoning Ordinance (SRMC 14.04.020).

Multifamily Residential Districts: High-Density (HR1, HR1.5, HR1.8) The purpose of the high-density residential district provides opportunities for highdensity multifamily residential development. High-density multifamily residential districts are included in the high-density residential land use category with densities ranging from one thousand (1,000) square feet to one thousand eight hundred (1,800) square feet per dwelling unit. Allowable land uses are outlined in SRMC Section 14.04.020 - Land use regulations (R, DR, MR, HR, PD).

Pursuant to SRMC Section 14.04.020, Multifamily residential is an allowed use in the HR zoning district and no use permit is required. Emergency shelters for the homeless is an allowable use in the HR zoning district with a Use Permit. Under state law, during a declared shelter crisis by a city, certain homeless shelters can be exempted from provisions of any housing, health, habitability, planning and zoning, or safety standards, procedures, or laws shall be suspended for homeless shelters, provided that the city or county has adopted health and safety standards and procedures for homeless shelters consistent with ensuring minimal public health and safety and those standards are complied with. (Gov. Code section 8698.4(a)(2)(A)(ii).) These “shelter crisis” homeless shelters are defined as “a facility with overnight sleeping accommodations, the primary purpose of which is to provide temporary shelter for the homeless that is not in existence after the declared shelter crisis. A temporary homeless shelter community may include supportive and self-sufficiency development services. A “homeless shelter” shall include a parking lot owned or leased by a city, county, or city and county specifically identified as one allowed for safe parking by homeless and unstably housed individuals.” (Gov. Code 4912-4970-3031 v1
section 8698.4(c)(1).) The City is currently considering a shelter crisis declaration and adoption of an ordinance for reasonable local standards and procedures for the design, site development, and operation of homeless shelters while ensuring compliance with minimum health and safety measures on City-owned or leased property, which would include the project site.

Low barrier navigation centers are another type of homeless shelter that, under state law, are a “use by right” not subject to CEQA in areas zoned for mixed use and nonresidential zones permitting multifamily uses, provided certain conditions are met. (Gov. Code section 65660(b).) A “low barrier navigation center” or “LBNC” means a Housing First, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. An LBNC may be non-congregate and relocatable. “Low Barrier” means best practices to reduce barriers to entry, and may include, but is not limited to, the following:
(1) The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth. (2) Pets.
(3) The storage of possessions.
(4) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms.

LBNCs must:
(1) Offer services to connect people to permanent housing through a services plan that identifies services staffing.
(2) Be linked to a coordinated entry system, so that staff in the interim facility or staff who co-locate in the facility may conduct assessments and provide services to connect people to permanent housing. “Coordinated entry system” means a centralized or coordinated assessment system developed pursuant to Section 576.400(d) or Section 578.7(a)(8), as applicable, of Title 24 of the Code of Federal Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals.
(3) Comply with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.
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(4) Have a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information System as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.

It is likely that the interim shelter component of the Project would constitute an LBNC and would therefore be a use by right.

The Project entails the acquisition of the project site for future use as a homeless shelter pursuant to the Shelter Crisis Act, or for a low barrier navigation center (which would be a use by right) and for future development for affordable housing, which is allowed by right. The Project is consistent with PD 1979 and applicable provisions of the HR zoning district as preempted by state law.

Development Standards
As outlined in PD 1979, applicable development standards for the site are for the HR1 zoning district, which are contained in SRMC Section 14.04.040 - Property development standards, which include a 36-foot height limit. Through consistency with applicable state law pertaining to Shelter Crisis Act homeless shelters (Gov.

Code section 8698.4) and LBNCs, (Gov. Code section 65662), and compliance with the HR1 zoning district development standards (for the affordable housing component), The City’s proposed acquisition of 350 Merrydale for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development of up to 76 base units (137 units with a Density Bonus utilizing applicable waivers) conforms with the City of San Rafael 2040 General Plan land use designation, General Plan policies, and is allowed by the applicable Planned Development PD 1979.

D. CEQA Guidelines Section 15183 Analysis
In approving a project meeting the conditions of CEQA Guidelines Section 15183, analysis of environmental impacts is limited to those impacts that (1) are peculiar to the project or site on which the project is located; (2) were not analyzed as significant effects in the prior EIR with which the project is consistent; (3) are potentially significant off-site and cumulative impacts that were not discussed in the prior EIR, and; (4) are previously identified significant effects that are determined to have a more severe impact than discussed in the prior EIR.

The Project will not result in significant environmental effects peculiar to the Project or site where it is located. The site was previously used as a school and the General Plan and associated EIR anticipated the site would be developed for residential development. The project site is located within a developed urban context connected by roads and utilities and surrounded by established urban uses, including singlefamily, multifamily, and commercial development. 4912-4970-3031 v1
Environmental effects associated with General Plan buildout, including development of the site at the proposed density and intensity of the project were previously examined at a programmatic level in a certified EIR for the adopted General Plan.

The Project would not contribute new significant effects that were not previously analyzed or could not be addressed through standard requirements for development.

Through incorporation of the recommended conditions of approval, impacts associated with development of the Project will be the same as previously identified in the General Plan EIR. Accordingly, the Project will not result in impacts that are peculiar to the Project or site on which the project is located; does not involve impacts that were not analyzed as significant effects in the prior EIR; will not result in impacts that are potentially significant off-site and cumulative impacts that were not discussed in the prior EIR, and will not result in impacts that new or more severe impacts as compared to those discussed in the prior EIR. Therefore, the Project qualifies for streamlined review pursuant to Section 15183 of the CEQA Guidelines.

VII. CEQA GUIDELINES SECTION 15332 EXEMPTION
CEQA Guidelines Section 15332 states that infill development is exempt from CEQA review if it meets the following criteria:
a. The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations.
b. The proposed development occurs within city limits on a project site of no more than 5 acres substantially surrounded by urban uses. c. The project site has no value, as habitat for endangered, rare or threatened species.
d. Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.
e. The site can be adequately served by all required utilities and public services.

As discussed below, the Project meets each of these criteria and is therefore categorically exempt from CEQA. Furthermore, there are no applicable exceptions to the exemption.

A. The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulation.

General Plan: The Project site is designated Community Commercial Mixed Use (21.8-43.6 units/net acre; maximum FAR 0.3). This category corresponds to general retail and service uses, restaurants, automobile sales and service uses, hotels/ motels, and other commercial activities. Offices are also permitted, except where 4912-4970-3031 v1
specifically precluded by General Plan policies. Mixed use projects that combine housing and commercial uses are encouraged. Projects that are entirely residential are permitted, although limitations may apply in certain zoning districts to ensure that adequate land is provided for activities generating sales tax, jobs, and local service opportunities. Residential development is subject to a maximum net density of 43.6 units per acre. The floor-area-ratio (FAR) limit of 0.3 applies to nonresidential square footage only, and excludes square footage associated with housing in mixed use projects. Lower FAR limits may apply on some parcels, as indicated on Figure 3-2 (Floor Area Ratio map). Areas with this designation include the Northgate Town Center, Merrydale Road area, and portions of Francisco Boulevard East and West.

The proposed use of the site would be consistent with the General Plan Land Use designation as the project proposes an interim shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. Based on the size of the site (2.29 acres) and the maximum net density (21.8-43.6 units/net acre), the General Plan evaluated the site at anticipated net density would be 50-100 units based on the allowable density in the General Plan.

An analysis of the Project’s conformity with the applicable General Plan policies is provided in detail in matrix format in the General Plan Conformity Analysis (Attachment 1).

Zoning Code: The site has a Planned Development (PD) zoning classification and the PD was adopted on February 18, 2020 (PD 1979). The purpose of the Planned Development District for the 45-unit residential development is to regulate the development of a 2.28-acre site located at 350 Merrydale Road/3883 Redwood Highway.

The PD permitted: 1) a 45-unit residential condominium development on the 2.28- acre site, a 500 square foot Community Room for tenant use and a “Creek Promenade” area for use as a recreational amenity, as per approved plan Sheet SP2; and 2) All other land uses shall follow the land use regulations set forth in the High Density Residential HR1) District land use classification as contained in Zoning Ordinance (SRMC 14.04.020).

Multifamily Residential Districts: High-Density (HR1, HR1.5, HR1.8) - The purpose of the high-density residential district is to provide opportunities for high-density multifamily residential development. High-density multifamily residential districts are included in the high-density residential land use category with densities ranging from one thousand (1,000) square feet to one thousand eight hundred (1,800) square feet per dwelling unit. Allowable land uses are outlined in SRMC Section

14.04.020 - Land use regulations (R, DR, MR, HR, PD).

Pursuant to SRMC Section 14.04.020, Multifamily residential is an allowed use in the HR zoning district and no use permit is required. Emergency shelters for the homeless is an allowable use in the HR zoning district with a Use Permit. Applicable definitions contained in SRMC Section 14.03.030 (Definitions) can be found below:
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"Residential, multifamily" means medium and high density residential development, including a "transitional housing development" or "supportive housing" as defined under State Health and Safety Code Section 50675.2 (and subsequent amendments), containing three (3) or more attached dwelling units in one (1) or more structures located on a single parcel or common lot. "Emergency shelters" means housing as defined under the State Health and Safety Code Section 50801(e); i.e., with minimal supportive services for homeless person(s) that is limited to occupancy of six (6) months or less by a homeless person. No individual or household may be denied emergency shelter because of inability to pay.
"Permanent emergency shelter for the homeless" means a permanent residential facility operated by a provider which provides emergency housing or temporary accommodations year-round to homeless persons and/or families on a nonprofit basis, and which meets the standards for shelters contained in this title. A facility under this section does not include temporary shelter provided by general relief in the wake of a disaster where assistance by the American Red Cross and/or federal disaster relief is provided. "Temporary or rotating emergency shelter for the homeless" means a nonprofit temporary or emergency housing facility for individuals and families authorized to operate up to six (6) consecutive months. A facility under this definition does not include temporary shelter provided by general relief in the wake of a disaster where assistance by the American Red Cross and/or federal disaster relief is provided.

The proposed project entails the acquisition of the project site for the future use as a Shelter Crisis Act homeless shelter or LBNC (a use by right), and for future development for affordable housing, which is allowed by right, the project is consistent with the HR zoning district through the application of state laws related to shelters and density bonus, and is allowed under PD 1979.

The Project is consistent with the General Plan land use designation and application policies and programs. The Project is also consistent with the PD zoning designation and governing standards. Therefore, the Project meets criteria a.

B. The proposed development occurs within city limits on a project site of no more than 5 acres substantially surrounded by urban uses.

The project site is located on a 2.5-acre Project Site within the limits of the City of San Rafael and is surrounded by commercial businesses to the north and south; a residential apartment building to the south, along Merrydale Road; a residential subdivision to the west across Merrydale; and the US Highway 101 corridor neighbors the site to the east. As the Project Site is located within the city limits on a 4912-4970-3031 v1
site less than five (5) acres and is surrounded on all sides by urban uses, the project site meets criteria b.

C. The project site has no value, as habitat for endangered, rare or threatened species.

As shown in Figure 6-1 of the San Rafael 2040 General Plan, the project site and surrounding area has a vegetative cover of “Urban/other” which is consistent with the developed nature of the site, including the existing hardscape and vacant commercial building, which limits the presence of critical habitat for endangered, rare or threatened species. The existing vacant building and trees on the site have the potential to provide habitat for roosting bats and nesting birds; however, as shown in Figure 2, the site’s features and surrounding areas do not represent value as habitat considering that they lack the ecological complexity, natural features, and documented, recurring use by rare, threatened, or endangered species necessary to be considered critical, sensitive, or valuable habitat.

Figure 2. Aerial of Project Site
General Plan Program C-1.12A requires that sites with suitable anthropogenic habitat be surveyed for the presence of special status species following accepted protocol prior to development-related habitat removal. Additionally, General Plan 4912-4970-3031 v1
Program C-1.13E requires pre-construction surveys if construction will occur during the bird nesting season. As such, consistent with these General Plan Programs and state requirements, any future development would be conditioned to conduct preconstruction surveys if demolition and/or tree removal will occur during the roosting and nesting seasons.

Given the highly disturbed nature of the site and surrounding area, there is an overall lack of value as habitat for endangered, rare, or threatened species. Therefore, the Project complies with criteria c.

D. Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

This memorandum relies on the impact criteria contained in Appendix G of the 2025 CEQA Guidelines to evaluate whether the project would result in significant effects relating to traffic, noise, air quality, or water quality.

Traffic
The project site is located approximately 100 feet southwest of US 101 Highway near the Civic Center SMART station. Vehicular access to the Project Site is via Merrydale Road, which is a two-lane north-south roadway with on-street parking and a posted speed limit of 25 miles per hour (mph). Merrydale Road is discontinuous, terminating at the Sonoma-Marin Area Rail Transit (SMART) railroad tracks and beginning again north of the railroad tracks. Redwood Highway runs north-south parallel to Merrydale Road and US-101. The roadway has two lanes with on-street parking. The prima facie speed limit is 25 mph. The site accesses Highway 101 via the Merrydale Road/US 101 South Ramps and Merrydale Road/North San Pedro Road intersections.
• Merrydale Road/US 101 South Ramps is an all-way stop-controlled tee intersection with a yield-controlled channelized northbound right-turn. The intersection has a crosswalk on the east ramp leg.
• Merrydale Road/North San Pedro Road is a signalized intersection with split phasing on the eastbound and westbound Merrydale Road approaches, protected left-turn phasing on eastbound North San Pedro Road, and a rightturn overlap on westbound North San Pedro Road. Crosswalks are provided on the north and west legs, and sidewalks are provided except the southeast corner.

Anticipated trip generation was estimated using standard rates published by the Institute of Transportation Engineers (ITE) Trip Generation Manual, 11th Edition, 2021. Rates for Multifamily Housing (Mid-Rise) Close to Transit (LU 221) in a dense, urban setting was applied to the housing units. These estimates conservatively do not include offsets for any existing or prior uses of the site. As shown in Table 2 4912-4970-3031 v1
below, the project would be expected to generate an average of 201 net new trips per day, with 25 am peak hour trips and 25 pm peak hour trips.

Table 2. Trip Generation Summary
Land Use Units
(du)
Daily AM Peak Hour PM Peak Hour
Rate
(per
ksf)
Trips Rate
(per
ksf)
Trips Rate
(per
ksf)
Trips
Proposed
Multifamily
Housing
(ITE 221)
100 2.01 201 0.25 25 0.25 25
Net New Trips
201 25 25
Vehicle Miles Traveled
Pursuant to Senate Bill 743, transportation and traffic impacts should be measured using vehicle miles traveled (VMT) instead of the previously used Level of Service (California Office of Planning and Research [OPR] 2013). Reducing VMT is an effective climate strategy and is intended to decrease greenhouse gas emissions associated with the transportation sector while increasing benefits to human health.

The 2022 City of San Rafael Transportation Analysis Guidelines (“guidelines”) include a list of VMT screening thresholds and indicate that projects meeting at least one of the thresholds would be presumed to not require CEQA VMT analysis. Figure 2 in the guidelines provides a map based on outputs from the Transportation Authority of Marin Demand Model that identifies low-VMT areas for residential development in the City of San Rafael. The project location is shown on the map as being in a low-VMT area, indicating that the VMT per capita is at least 15 percent below the average of the nine-county Bay Area. Therefore, the impact is presumed to be less than significant and does not require a quantitative VMT analysis.

In addition, the project site is located within approximately 0.6-mile walking distance of the Civic Center SMART station. Projects in proximity to major transit stops are presumed to have a less-than-significant impact under the VMT standards applied by the State of California and most local lead agencies. Due to the proximity of these transit opportunities as well as a range of services in San Rafael, many project-generated trips would be made using non-vehicle modes of transportation, which supports the finding from the model data that the site is in a low-VMT area.

The project’s VMT impact would be presumed to be less than significant.

Pedestrian, Bicycle and Transit Facilities
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Pedestrian Facilities: Pedestrian facilities include sidewalks, crosswalks, pedestrian signal phases, curb ramps, curb extensions, and various streetscape amenities such as lighting, benches, etc. In general, a network of sidewalks, crosswalks, pedestrian signals, and curb ramps provide access for pedestrians in the vicinity of the proposed project site; however, sidewalk gaps, obstacles, and barriers can be found along all of the roadways connecting to the project site. Existing gaps and obstacles along the connecting roadways impact convenient and continuous access for pedestrians and present safety concerns in those locations where appropriate pedestrian infrastructure would address potential conflict points. • Merrydale Road - Nearly continuous sidewalk coverage is provided on the east side of Merrydale Road except along one parcel where sidewalk has not been constructed by the property owner or the City. Pedestrians walking on the east side of Merrydale Road are able to walk adjacent to parked vehicles, out of the travel lane. No sidewalk is provided on the west side of Merrydale Road. Curb ramps and crosswalks at side street approaches are intermittent.

At both study intersections along Merrydale Road channelized right turns conflict with pedestrian movements. Lighting is provided by overhead streetlights.
• Redwood Highway - Nearly continuous sidewalk coverage is provided on the west side of Redwood Highway except along one parcel where sidewalk has not been constructed by the property owner or the City. Pedestrians do not need to enter the travel lane to walk on the west side of the street. There is no sidewalk coverage provided on the east side of Redwood Highway. Curb ramps at side street approaches are provided; however, there are no marked crosswalks. Overhead street lighting provides intermittent coverage.

Bicycle Facilities: In the project area, there is a Class I bike path along the western side of the SMART tracks from Lincoln Avenue to Civic Center Drive. Bicyclists ride in the roadway and/or on sidewalks along all other streets within the project study area.

Transit Facilities: Marin Transit provides fixed route bus service in Marin County, including the City of San Rafael. Marin Transit Route 35 provides regional service between San Rafael and Novato, and stops at Merrydale Road and North San Pedro Road. Route 35 operates seven days per week. Route 49 also stops at Merrydale Road and North San Pedro Road, although only the southbound stop is near the project site. Southbound Route 49 service connects San Rafael and Novato and is provided seven days per week. Route 145 is a school route that stops at Merrydale Road and North San Pedro Road and connects various neighborhoods in San Rafael to Terra Linda High School on the north side of the City. Service is provided on school days.

Route 233 provides service between downtown San Rafael and the communities along North San Pedro Road, with a stop at Merrydale Road and North San Pedro Road in the southbound direction only. Southbound service is provided seven days per week. Route 245 provides service between downtown San Rafael and the 4912-4970-3031 v1
northern neighborhoods of San Rafael, with a stop along US 101 South between the Merrydale off-ramp and on-ramp, in the southbound direction only. Service is provided seven days per week. Route 257 provides regional service between San Rafael and unincorporated communities south of Novato, with stops at Los Ranchitos Road and Golden Hinde Boulevard. Route 257 operates Monday to Friday.

Golden Gate Transit provides service between San Francisco and various communities in Marin and Sonoma Counties. Routes 44, 54, and 70 share a stop along US 101 South between the Merrydale off-ramp and on-ramp, in the southbound direction only. Route 44 service is provided Monday to Friday. Route 54 service is provided Monday to Friday. Route 70 service is provided seven days per week.

At present, rail transit is located within one-half mile of the project site at the atgrade crossing on Civic Center Drive and the SMART Tracks. SMART provides service between San Rafael and Airport Road north of Santa Rosa, including stops in Novato, Petaluma, Cotati, Rohnert Park, and Santa Rosa. Extensions are planned to Windsor, Healdsburg, and Cloverdale in the north, and Larkspur in the south, where passengers can transfer to ferries to San Francisco. Service is provided seven days per week.

As discussed above, SMART service and numerous bus routes are available within a short walking distance of the project site and provide service to a wide variety of destinations, and existing transit routes are adequate to accommodate projectgenerated transit trips. Impacts related to pedestrian, bicycle and transit facilities would be less than significant.

Site Circulation and Access
The project would not result in changes to the physical or operational conditions of the roadway that would introduce hazards, and the project impact with regard to these factors would be less than significant. Site access would be unchanged and impacts related to emergency access and response times would also be less than significant.

Conclusion
Impacts related to VMT and site circulation and access would be less than significant. The project would meet the requirements for Traffic under criterion d.

Noise
Noise Fundamentals
Sound is a vibratory disturbance created by a moving or vibrating source, which is capable of being detected by the hearing organs. Noise is defined as sound that is loud, unpleasant, unexpected, or undesired and may therefore be classified as a more specific group of sounds. Noise levels are commonly measured in decibels (dB) using the A-weighted sound pressure level (dBA). The A-weighting scale is an adjustment 4912-4970-3031 v1
to the actual sound pressure levels so that they are consistent with the human hearing response, which is most sensitive to frequencies around 4,000 Hertz and less sensitive to frequencies around and below 100 Hertz (Kinsler, et. al. 1999). Decibels are measured on a logarithmic scale that quantifies sound intensity in a manner similar to the Richter scale used to measure earthquake magnitudes. A doubling of the energy of a noise source, such as doubling of traffic volume, would increase the noise level by 3 dB; dividing the energy in half would result in a 3 dB decrease (Crocker, 2007).

Human perception of noise has no simple correlation with sound energy: the perception of sound is not linear in terms of dBA or in terms of sound energy. Two sources do not “sound twice as loud” as one source. It is widely accepted that the average healthy ear can barely perceive changes of three (3) dBA, increase or decrease (i.e., twice the sound energy); that a change of five (5) dBA is readily perceptible (eight [8] times the sound energy); and that an increase (or decrease) of 10 dBA sounds twice (half) as loud as what is readily perceptible (Crocker, 2007).

Sound changes occur in both level and frequency spectrum as it travels from the source to the receptor. The most obvious change is the decrease in level as the distance from the source increases. The manner by which noise reduces with distance depends on factors such as the type of sources (e.g., point or line, the path the sound will travel, site conditions, and obstructions). Noise levels from a point source typically attenuate, or drop off, at a rate of six (6) dBA per doubling of distance (e.g., construction, industrial machinery, ventilation units). Noise from a line source (e.g., roadway, pipeline, railroad) typically attenuates at about three (3) dBA per doubling of distance (California Department of Transportation [Caltrans], 2013).

Noise levels may also be reduced by intervening structures; the amount of attenuation provided by this “shielding” depends on the size of the object and the frequencies of the noise levels.

The impact of noise is not a function of loudness alone. The time of day when noise occurs, and the duration of the noise are also important factors of project noise impact. Most noise that lasts for more than a few seconds is variable in its intensity.

Consequently, a variety of noise descriptors have been developed by academics and industry professionals. One of the most frequently used noise metrics is the equivalent noise level (Leq); it considers both duration and sound power level. Leq is defined as the single steady A-weighted level equivalent to the same amount of energy as that contained in the actual fluctuating levels over time. Noise that occurs at night tends to be more disturbing than that occurring during the day. Community noise is often measured using Day-Night Average Level (Ldn or DNL), which is a 24- hour average noise level with a +10 dBA penalty for noise occurring during nighttime (10:00 p.m. to 7:00 a.m.) hours (Caltrans, 2013).

Noise Standards
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City of San Rafael General Plan: The San Rafael General Plan Noise Element noise compatibility guidelines illustrate the State guidelines established by the State Department of Health Services for acceptable noise levels for each county and city.

These standards and criteria are incorporated into the land use planning process to reduce future noise and land use incompatibilities. This table is the primary tool that allows the city to ensure integrated planning for compatibility between land uses and outdoor noise. As shown in Table 3, for residential land uses, noise levels of up to 60 dBA are considered “Normally Acceptable” and noise levels of 60 to 70 dBA are considered “Conditionally Acceptable”.

Table 3 Noise Compatibility Guidelines for San Rafael
Land Use Categories
Exterior Noise Levels - Community Noise Equivalent Level (CNEL) Normally
Acceptable1
Conditionally
Acceptable2
Normally
Unacceptable3
Clearly
Unacceptable4
Residential (Low-Density, Single-Family,
Duplex, Mobile Homes)
50-60 60-70 70-75 75-85
Residential (Multiple-Family) 50-65 65-70 70-75 70-85
Transient Lodging, Motels, Hotels 50-65 65-70 70-80 80-85 Schools, Libraries, Churches, Hospitals,
Nursing Homes
50-65 65-70 70-80 80-85
Auditoriums, Concert Halls, Amphitheaters N/A 50-70 N/A 70-85 Sports Arenas, Outdoor Spectator Sports N/A 50-75 N/A 75-85 Playgrounds, Neighborhood Parks 50-70 70-75 75-85 N/A
Golf Courses, Riding Stables, Water
Recreation, Cemeteries
50-70 70-80 80-85 N/A
Office Buildings, Business Commercial and
Professional
50-70 70-75 75-85 N/A
Industrial, Manufacturing, Utilities,
Agriculture
50-70 70-80 80-85 N/A
1 Normally Acceptable: Specified land use is satisfactory based upon the assumption that any buildings involved meet conventional Title 24 construction standards. No special noise insulation requirements. 2 Conditionally Acceptable: New construction or development shall be undertaken only after a detailed noise analysis is made and noise reduction measures are identified and included in the project design 3 Normally Unacceptable: New construction or development is discouraged. If new construction is proposed, a detailed analysis is required, noise reduction measures must be identified, and noise insulation features included in the design. 4 Clearly Unacceptable: New construction or development should not be undertaken Source: San Rafael 2021
The following goals and policies from the Noise Element are relevant to the proposed project.

Policy N-1.2: Maintaining Acceptable Noise Levels. Minimize noise conflicts resulting from everyday activities such as construction, sirens, yard equipment, business operations, night-time sporting events, and domestic activities. (a): New development shall not increase noise levels by more than 3 dB Ldn in a residential area, or by more than 5 dB Ldn in a non-residential area. 4912-4970-3031 v1
Policy N-1.9: Maintaining Peace and Quiet. Minimize noise conflicts resulting from everyday activities such as construction, sirens, yard equipment, business operations, night-time sporting events, and domestic activities.

Program N-1.9B: Construction Noise. Establish a list of construction best management practices (BMPs) for future projects and incorporate the list into San Rafael Municipal Code Chapter 8.13 (Noise) The City Building Division shall verify that appropriate BMPs are included on demolition, grading, and construction plans prior to the issuance of associated permits Policy N-1.11: Vibration. Minimize noise conflicts resulting from everyday activities such as construction, sirens, yard equipment, business operations, night-time sporting events, and domestic activities.

Program N-1.11A: Vibration-Related Conditions of Approval. Adopt Standard conditions of approval in San Rafael Municipal Code Chapter 8.13 (Noise) that apply Federal Transit Administration (FTA) criteria for acceptable levels of groundborne vibration for various building types. These conditions should:
(a) reduce the potential for vibration-related construction impacts for development projects near sensitive uses such as housing, schools, and historically significant buildings
(b) reduce the potential for operational impacts on existing or potential future sensitive uses such as uses with vibration-sensitive equipment (e.g., microscopes in hospitals and research facilities) or residences.

Vibration impacts shall be considered as part of project level environmental evaluation and approval for individual future projects. If vibration levels exceed FTA limits, conditions of approval shall identify construction and operational alternatives that mitigate impacts.

City of San Rafael Municipal Code: To implement the City’s noise policies, the City adopted Chapter 8.13 Noise (Noise Ordinance) in the San Rafael Municipal Code (SRMC). SRMC Section 8.13.040 states that the general noise limits contained in Table 4 shall apply subject to the exceptions and exemptions set forth in the chapter.

Where two or more noise limits may apply, the more restrictive noise limit shall govern. For purposes of determining sound levels from any source of sound, a sound level measurement shall be made at any point on any receiving private or public property. In multifamily structures, the microphone shall be placed no closer than

3.5 feet from a wall through which the source of sound at issue is transmitting and shall also be placed five feet above the floor regardless of whether the source of sound at issue transmits through the floor, ceiling or wall. Sound level measurements shall be made with a sound level meter (Type 1 or 2) set to A-weighting, and "fast" response for intermittent sound. Slow or fast response may be used for constant noise sources. For intermittent sound, the one second rms maximum level (Lmax) shall be used. For constant sound, the average level (Leq) shall be used.

Table 4 San Rafael General Noise Limits
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Noise Level (dBA)
Daytime1 Nighttime1
Land Use Intermittent Constant Intermittent Constant
Residential 60 50 50 40
Mixed-Use 65 55 55 45
Multifamily Residential 40 35 35 30
Commercial 65 55 65 55
Industrial 70 60 70 60
1 Daytime = 7am-9pm (Sun-Thu); 7am-10pm (Fri-Sat); Nighttime = 9pm-7am (Sun-Thu); 10pm-7am (Fri-Sat) Source: City of San Rafael Ordinance, Chapter 8.13
Section 8.13.050(A), Standard exceptions to general noise limits – Construction, states that on any construction project on property within the city, construction, alteration, demolition, maintenance of construction equipment, deliveries of materials or equipment, or repair activities otherwise allowed under applicable law shall be allowed between the hours of 7:00 a.m. and 6:00 p.m., Monday through Friday, and 9:00 a.m. and 6:00 p.m. on Saturdays, provided that the noise level at any point outside of the property plane of the project shall not exceed 90 dBA. All such activities shall be precluded on Sundays and holidays.

Sensitive Receptors
Some land uses are generally regarded as being more sensitive to noise than others due to the types of population groups or activities involved. Sensitive population groups include children and the elderly. Sensitive land uses generally include residential areas, hospitals, schools, childcare facilities, senior facilities, libraries, churches, and parks. The nearest sensitive receptors are residences across Merrydale (75 feet to the west) and a senior care facility on Redwood Highway (800 feet to the south), and residential development along Merrydale (1,000 feet to the south).

Existing Noise Environment
The project site is in the City of San Rafael, Marin County, in a characteristically urban area subject to noise from nearby Highway 101, local traffic on public streets, buses, trains, light rail, construction, and small power equipment (e.g., lawn mowers, edger, etc.).

The project site is located to the west of Redwood Highway (US-101) on Merrydale Road in the City of San Rafael. The primary noise source at the site is vehicular traffic along US- IO I and local traffic along Merrydale Road. US-101 is elevated by about 10 feet above the ground level of the site. Residential and commercial structures surround the project site. A noise monitoring survey was performed in the vicinity of the project site beginning Monday, May 21, 2018 and concluding on Thursday, May 24, 2018. The primary noise sources at the site were traffic on Redwood Highway and Highway 101.
4912-4970-3031 v1
Construction of the project would generate temporary noise that would be audible at nearby residences. Noise associated with construction is a function of the type of construction equipment, the location and sensitivity of nearby land uses, and the timing and duration of the construction activities. Construction of the project would generate temporary noise that would be audible at nearby residences to the south and east of the project site. Noise associated with construction is a function of the type of construction equipment, the location and sensitivity of nearby land uses, and the timing and duration of the construction activities. Based on construction details provided by the applicant, it is estimated that the construction period for all phases would be approximately 30 months. While all phases of construction would generate noise, the demolition, grading and building construction phases would represent the loudest periods of noise-generating activity. The greatest anticipated sources of construction noise would be generated by large earthmoving equipment such as large bulldozers and industrial concrete saws. Construction noise was estimated using the Federal Highway Administration (FHWA) Roadway Construction Noise Model (RCNM) (FHWA 2006). It is anticipated that the maximum noise level associated with construction equipment would be 90 dBA at a distance of 50 feet from the source. Pile driving is not anticipated in any phase of construction.

Construction would be limited to hours allowed by the City’s Municipal Code Section

8.13.050(A). The project would introduce sources of operational noise to the site, including HVAC. The City applies conditions of approval (COA) to implement Program N-1.9B: Construction Noise of the 2040 General Plan EIR. The following condition of approval would be applied to the project.
 COA-Construction Noise. During construction, the project shall:

1. Properly muffle and maintain all construction equipment powered by internal combustion engines.

2. Prohibit unnecessary idling of combustion engines.

3. Locate all stationary noise-generating construction equipment such as air compressors as far as practical from existing nearby residences and other noise-sensitive land uses. Such equipment shall also be acoustically shielded.

4. Select quiet construction equipment, particularly air compressors, whenever possible. Fit motorized equipment with proper mufflers in good working order.

5. Residences adjacent to project sites shall be notified in advance by writing of the proposed construction schedule before construction activities commence.

6. The project applicant shall designate a “noise disturbance coordinator” responsible for responding to any local complaints about construction noise.

The disturbance coordinator shall determine the cause of any noise complaint (e.g., starting too early, bad muffler, etc.) and shall require that reasonable measures be implemented to correct the problem. A telephone number for the disturbance coordinator shall be posted at the construction site.

7. Erect temporary noise barriers to limit construction noise to no more than 90 dBA Lmax at residences. Temporary noise barriers shall be constructed with solid materials (e.g., wood) with a density of at least 1.5 pounds per square 4912-4970-3031 v1
foot with no gaps from the ground to the top of the barrier at a minimum height of 12 feet along the southern and eastern project boundaries. If a sound blanket is used, barriers shall be constructed with solid material with a density of at least one pound per square foot with no gaps from the ground to the top of the barrier and be lined on the construction side with acoustical blanket, curtain or equivalent absorptive material rated sound transmission class (STC) 32 or higher.

Additionally, construction activity would occur within the allowable construction day and time limits defined in the City of San Rafael Code of Ordinances: between 7:00 a.m. and 8:00 p.m. Monday through Friday and between 9:00 a.m. and 6:00 p.m. on Saturday. Implementation of the COA above would be required and would decrease construction noise by at least 15 dBA (Harris 1991; Bies, Hansen, Howard 2018) to 89 dBA Lmax. This would be below the construction noise threshold of 90 dBA Lmax and impacts would be less than significant.

Airport Noise
Aircraft noise can occasionally be an issue in San Rafael due to aircraft passing overhead and planes taking off and landing at San Rafael Airport, a small private airport in the Smith Ranch area. The City is also home to a private heliport, located in southeast San Rafael near Point San Quentin. Aircraft noise is regulated by Federal Aviation Administration standards and by the California Code of Regulations. The State Code limits noise-sensitive land uses such as housing in areas where aircraft exterior noise levels exceed 65 dBA CNEL. As the maps in General Plan Appendix I indicate, noise levels are below this level at San Rafael Airport and are expected to remain below this level in the future. The San Rafael Airport is located approximately

1.0 mile to the east and is not located within the 65 dBA CNEL noise contour of this airport (City of San Rafael 2021). There is no other public or private use airport within two miles of the project site. Therefore, there would be no impact.

Air Quality
Construction activities associated with development of the project would temporarily generate emissions associated with diesel-powered construction equipment and fugitive dust. Construction emissions modeled include emissions generated by construction equipment used on the site and emissions generated by vehicle trips associated with construction, such as worker, hauling, and vendor trips.

Operation of the project would generate criteria air pollutant emissions associated with area sources (e.g., architectural coatings, consumer products, and landscaping equipment) and mobile sources (i.e., vehicle trips to and from the project site).

The Bay Area Air Quality Management District (BAAQMD) 2022 CEQA Guidelines provide preliminary screening for a lead agency to consider in making a conservative determination of a project’s potential impacts on air quality based on proposed landuse (i.e. residential, commercial, industrial, etc.). Projects that are below the screening criteria are reasonably expected to result in less than significant impacts to air quality since pollutant emissions would be minimal and as such, preparation 4912-4970-3031 v1
of a quantitative analysis is not needed. The screening level criteria for residential development (apartment or condo/townhouse) is 416 dwelling units for construction and 638 dwelling units for operation. The maximum anticipated development of the site would be 137 units.

When projects exceed the BAAQMD screening criteria, a detailed assessment of the project’s criteria air pollutant and precursor impacts would be warranted to determine if the project would result in significant impacts related to air quality. The Project proposes the development of a maximum of 137 dwelling units, which is below the screening size for construction (416 dwelling units) and operation (637 dwelling units) (BAAQMD, 2022). Given that the proposed project size is well below the screening criteria, the Project does not trigger the need for a detailed assessment of the Project’s criteria air pollutant and precursor emissions and therefore the proposed project will not result in significant effects related to air quality during project construction or operation. The Project will be required to comply with conditions of approval requiring implementation of best management practices (BMPs) established by BAAQMD.

Water Quality
The project site is currently developed with existing structures and surface parking, and there are no wetlands on or adjacent to the project site. The site is comprised almost entirely of impervious surfaces under existing conditions, and this condition would not substantially change with the proposed project. The City of San Rafael’s Urban Runoff Pollution Prevention ordinance (SRMC Chapter 9.30) includes provisions to comply with federal requirements for the control of urban pollutants in storm water runoff during construction and operation. The ordinances require construction projects to implement BMPs during construction to prevent discharge of construction contaminants including erosion and sediment controls and pollution prevention practices, and to implement an Erosion and Sediment Control Plan if subject to a grading or building permit. Therefore, this impact would be less than significant.

E. The site can be adequately served by all required utilities and public services.

The project site is located within the City of San Rafael and would continue to be adequately served by City and regional services. The Property is currently being served and water service would continue to be provided by the Marin Municipal Water District (MMWD), though the purchase of additional water allotment will be required. The proposed project is consistent with the expected growth in the Downtown Precise Plan and the EIR prepared for the 2040 General Plan concluded that MMWD will have sufficient water supply to meet the demand for buildout of the General Plan pursuant to the MMWD Water Resources Plan 2040 (March 2017) and would neither exceed planned levels of supply nor require building new water treatment facilities or expanding existing facilities beyond what is currently planned. 4912-4970-3031 v1
Therefore, the proposed project would not have a significant effect on electricity or water utility services.

Wastewater service would be provided by the Las Gallinas Valley Sanitation District.

The EIR for the General Plan concluded that the expected increase in population as a result of the plans would not exceed the permitted capacity of the wastewater treatment plant or have other significant impacts to wastewater. The proposed project is consistent with the development anticipated by the General Plan and, therefore, the proposed project would not have a significant effect on wastewater.

As the proposed project is within the planned development of the area and can be served by all utilities and would exceed the capacity of or require the construction or expansion of new utility services, it can be concluded that the project can be adequately served by all required utilities and public services.

Exceptions to the Exemption
If a project qualifies for use of a categorical exemption, then the lead agency must determine whether the categorical exemption is unavailable because the project is subject to an exception to the categorical exemptions (CEQA Guidelines § 15300.2.).

A project will not qualify as exempt if it is subject to one of the six exceptions provided below:
(a) Location. Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located.
(b) Cumulative Impact. All exemptions are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant.
(c) Significant Effect. A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances. (d) Scenic Highways. A categorical exemption shall not be used for a project which may result in damage to scenic resources within a highway officially designated as a state scenic highway.
(e) Hazardous Waste Sites. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.
(f) Historical Resources. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource.

As described below, none of the exceptions to the exemption apply. a. Location. Section 15300.2(a) does not apply to a Class 32 infill exemption. 4912-4970-3031 v1
b. Cumulative Impact. Cumulative impacts relates to successive projects of the same type in the same place. No development is proposed at this time; however, the City maintains a list of active development project on the Major Project webpage:

Major Planning Projects - San Rafael
Cumulative project for 350 Merrydale include the Northgate Mall Redevelopment, 555 Northgate, and the project at 4040 Civic Center Drive. The project would not affect sensitive biological resources and therefore would not result in a cumulative impact related to biological resources. As noted in the report, VMT and air quality analyses already take into account cumulative impacts and these impacts were found to be less than significant. The proposed project would not contribute pollutants such that water quality would be impacted and would be served by available utilities and public services. The project would not result in a cumulatively considerable contribution to potential cumulative impacts.

The project would involve temporary noise and vibration during construction; however, these effects are localized and would cease upon cessation of construction activities. Construction noise impacts would not perceptibly overlap for the proposed project and the projects listed above, given their distance from the site; the other projects are over 0.25-miles from the project site. Noise attenuates over distance and as a result of intervening buildings and topography, and construction noise from other projects would not be substantially perceptible at the project site.

Overall, the project would not result in a significant contribution to potential cumulative impacts. Therefore, this exception does not apply to the proposed project.
c. Significant Effect and Unusual Circumstances. CEQA Guidelines Section 15300.2 states that “a categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.”
The project site is a level, paved and developed site in an urbanized area surrounded by other development. Neither the site, its surroundings, or the proposed project itself (a residential project on a level site in an urban area) are unusual in terms of existing conditions, land uses or proposed features. The potential presence of cultural resources is not uncommon or unusual in urban neighborhoods in the Bay Area, and as discussed further below, impacts related to cultural resources would be less than significant with implementation of existing City regulations. The project site does not possess characteristics which would qualify as unusual circumstances under CEQA Guidelines Section 15300.2. There are no known unusual circumstances at the project site or related to project operations that would result in a reasonable possibility of significant effects on the environment. Therefore, this exception to a Categorical Exemption does not apply to the proposed project. d. Scenic Highways. Section 15300.2(d) does not apply because the project site is not in proximity or visible to any designated scenic highway or highway eligible for 4912-4970-3031 v1
designation based on the State of California’s Scenic Highway program (Caltrans, 2025).
e. Hazardous Waste Sites. The site is not a hazardous waste site and is not included on a list compiled pursuant to Section 65962.5 of the Government Code (DTSC 2025, SWRCB 2025). This exception is not applicable to the proposed project. f. Historical resources. CEQA Guidelines Section 15300.2(f) states that a categorical exemption “shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource.” Archeological Resource Service prepared a Cultural Resources Evaluation for the project site in March of 2018. The assessment included: a California Historical Resources Information System (CHRIS) records search; a check of historical reference to determine potential for archeological deposits; a surface reconnaissance of all accessible parts of the site for visible signs of potentially significant historic or prehistoric deposits; and contact with all appropriate Native American organizations or individuals designated by the Native American Heritage Commission to determine the presence or absence of listed Sacred Lands within the project area. Archeological Resource Service concluded that no indicators of Native American habitation or use is expected as this location. No archeological monitoring was required, but several recommendations made with the intention of minimizing potential negative impacts to cultural resources in the event that they are discovered in the project area.

The City has adopted a number policies and regulations to protect cultural and historical resources, including:
• San Rafael General Plan 2040 Policy CDP-5.13
• Resolution No. 10980.
• San Rafael Code of Ordinances Chapter 2.19 - Archeological Resources Protection
Accordingly, the City, as a standard regulatory practice, includes conditions of approval for projects on sites with the potential to contain cultural resources, as required by these City policies and regulations. The following conditions of approval (COA) to implement these existing regulations would apply to the proposed project:
 COA-Cultural Resources-1 Retention of a Qualified Archaeologist. Prior to the start of project-related ground disturbance activities that may include, but are not limited to, demolition, pavement removal, potholing, grubbing, tree removal, trenching, excavation or grading, the applicant shall retain an archaeologist that meets the Secretary of the Interior’s Professional Qualifications Standards (Qualified Archaeologist) in prehistoric archaeology to oversee all Conditions of Approval associated with cultural resources.  COA-Cultural Resources-3 Unanticipated Discoveries of Archaeological Resources. Should archaeological resources unrelated to those associated with the resource addressed in COA –2, as determined by the Qualified Archaeologist, 4912-4970-3031 v1
be encountered during ground disturbing activities, work shall be immediately halted within 50 feet of the discovery until the Qualified Archaeologist has inspected the find. Discoveries may consist of pre-contact and/or historic-period resources. Construction shall not resume within the discovery area until the Qualified Archaeologist has conferred on the significance of the resources with the City, and Native American representatives for resources of an indigenous nature.

If it is determined that the unanticipated discovered archaeological resource constitutes a historical resource or a unique archaeological resource under CEQA, avoidance and preservation in place is the preferred manner of mitigation.

Preservation in place of the unanticipated discovery may be accomplished by, but is not limited to, avoidance, incorporating the resource into open space, capping, or deeding the site into a permanent conservation easement. In the event that preservation in place of the unanticipated discovery is demonstrated to be infeasible and data recovery through excavation is the only feasible mitigation available, an Archaeological Resources Treatment Plan shall be prepared and implemented by the Qualified Archaeologist in consultation with the City that provides for the adequate recovery of the scientifically consequential information contained in the archaeological resource. The Qualified Archaeologist and City shall consult with appropriate Native American representatives in determining treatment for pre-contact or indigenous resources to ensure cultural values ascribed to the resource, beyond those that are scientifically important, are considered.

With application of existing City regulations and standard conditions of approval, the proposed project would not result in an adverse change to the significance of a cultural resource, and this exception is not applicable to the proposed project.

VIII. CONCLUSION
Based on this analysis, the Project qualifies for a Categorial Exemption under CEQA Section 15183 as the Project is consistent with the development density established by existing zoning and general plan policies associated with the certified City of San Rafael 2040 General Plan. The Project also meets the criteria for a Class 32 Categorical Exemption pursuant to Section 15332 of the State CEQA Guidelines and is exempt from CEQA pursuant to CEQA Guidelines Article 19. 4912-4970-3031 v1
IX. REFERENCES

Bay Area Air Quality Management District (2022). Bay Area Air Quality Management District 2022 CEQA Guidelines. https://www.baaqmd.gov/~/media/files/planningand-research/ceqa/ceqa-guidelines-2022/ceqa-guidelines-chapter-4- screening_final-pdf.pdf?rev=ac551d35a52d479dad475e7d4c57afa6&sc_lang=en.

Accessed November 3, 2025.

California Department of Transportation (Caltrans), 2025. California State Scenic Highways. https://dot.ca.gov/programs/design/lap-landscape-architecture-andcommunity-livability/lap-liv-i-scenic-highways. Accessed 3 November 2025.

City of San Rafael (2021). San Rafael General Plan 2040. City of San Rafael. https://storage.googleapis.com/proudcity/sanrafaelca/uploads/2021/09/FullDoc ument-Adopted080221.pdf
City of San Rafael (2021). San Rafael General Plan 2040 & Downtown Precise Plan Final EIR. City of San Rafael. Available at:
https://storage.googleapis.com/proudcity/sanrafaelca/uploads/2021/06/FinalEI R_Combined_WithAppendix_05-21-2021-v2.pdf
City of San Rafael (2022). City of San Rafael Transportation Analysis Guidelines. City of San Rafael. Available at:
https://docs.google.com/viewerng/viewer?url=https://storage.googleapis.com/pr oudcity/sanrafaelca/2024/08/SanRafael_TA_Guidelines_Feb-2022.pdf Crocker, Malcolm J. (Editor) (2007). Handbook of Noise and Vibration Control Book, ISBN: 978-0-471-39599-7, Wiley-VCH, October.

California Department of Toxic Substances Control (2025). EnviroStor. https://www.envirostor.dtsc.ca.gov/public/. Accessed November 3, 2025.

Federal Transit Administration (FTA) (2018). Transit Noise and Vibration Impact Assessment Manual. U.S. Department of Transportation Federal Transit Administration. Available at:
https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/researchinnovation/118131/transit-noise-and-vibration-impact-assessment-manual-ftareport-no-0123_0.pdf Harris, Cyril, 1991, Handbook of Acoustical Measurements and Noise Control Third Edition.

Illingworth &Rodkin, Inc, 2018. 3833 Redwood Boulevard Environmental and Vibration Assessment.
4912-4970-3031 v1
Institute of Transportation Engineers (ITE) (2021). Trip Generation Manual, 11th Edition. Institute of Transportation Engineers (ITE). Available at:
https://www.ite.org/pub/?id=FB8FA48B-9560-D85F-56A4-5A6F8CD1A9CF Kinsler, Lawrence E. and R. Frey, Austin and B. Coppens, Alan and V. Sanders, James. Fundamentals of Acoustics, 4th Edition. ISBN 0-471-84789-5. Wiley-VCH, December 1999.

Kirchmann, Jason, PE, PLS, QSD/SP. “Subject: 3R’s School Site (350 Merrydale Road – San Rafael, CA) – Hydrology Analysis.” Received by Josh Minshall, Department of Public Works, City of San Rafael 25 Oct. 2018.

Niebanck, M.B., PG (2025). Phase I Environmental Site Assessment, 350 Merrydale Road, San Rafael, California. Amicus – Strategic Environmental Consulting.

Roop, W., M.A., RPA, (2018). A Cultural Resources Evaluation of 350 Merrydale, 3833 Redwood Highway, San Rafael, Marin County, California. Archeological Resource Group.

State Water Resources Control Board, 2025. Geotracker.
https://geotracker.waterboards.ca.gov. Accessed November 3, 2025.

ATTACHMENTS
A. General Plan Consistency Determination
B. City of San Rafael City Council Ordinance No. 1979
Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale

LAND USE ELEMENT
Policy LU-1.2: Development Timing For health, safety, and general welfare reasons, new development should only occur when adequate infrastructure is available, consistent with the following findings:
• The project is consistent with adopted Vehicle Miles Traveled (VMT) standards, as well as the requirements for Level of Service (LOS) specified in the Mobility Element.
• Planned circulation improvements necessary to meet City standards for the project have funding commitments and
completed environmental review.
• Water, sanitary sewer, storm sewer, and other infrastructure improvements needed to serve the proposed development have been evaluated and confirmed to be in place or to be available to serve the development by the time it is constructed.
• The project has incorporated design and construction measures to adequately mitigate exposure to hazards, including flooding, sea level rise, and wildfire.

Consistent. The City proposes to acquire the property at 350 Merrydale (“Property”) and no development is proposed at this time. Future development at the site was anticipated by the General Plan and it was determined by the General Plan EIR that the existing circulation network would be adequate to serve the Property. The Property would be served by public utilities for water, sanitary sewer, stormwater and other infrastructure. Any development would not be exposed to risks related to sea level rise or wildfire, and flooding would be addressed through the building permit process. While project specific details are not available at this time, the 2040 General Plan evaluated future residential development at the site at a maximum net density of 21.8-43.6 units/net acre and anticipated the future development of the site with a 45-unit townhome project and therefore the proposed acquisition is consistent with this policy.

Policy LU-1.3: Land Use and Climate Change. Focus future housing and commercial development in areas where alternatives to driving are most viable and shorter trip lengths are possible, especially around transit stations, near services, and on sites with frequent bus service. This can reduce the greenhouse gas emissions associated with motor vehicle trips and support the City’s climate action goals.

Consistent. The Property is located in a central area near transit stations with frequent bus service and is located close to the Marin Civic Center Sonoma-Marin Area Rail Transit (SMART) station. SMART provides service from Larkspur to the Sonoma County Airport. This Property allows for future housing in an area with alternatives to driving and therefore is consistent with this policy.

Policy LU-1.8: Density of Residential Development. Use the density ranges in the Land Use Element to determine the number of housing units allowed on properties within the Planning Area. The following provisions Consistent. The land use designation for the site is Community Commercial Mixed Use, which allows for 21.8 to 43.6 units per net acre and a maximum commercial FAR of 0.3. While project specific details are not available at this time, the 2040 General Plan evaluated future residential development at the site at a maximum net density of 21.8-43.6 units/net acre and anticipated the future development of the site with a 45-unit townhome project. Based on the size of the site (2.29 acres) and the maximum net density (21.8-43.6 units/net acre), site is anticipated to accommodate 50-100 units. Future development would be required to comply with the density standard contained in the General Plan and State Density Bonus law and therefore the proposed acquisition is consistent with this policy.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
apply:
• The density “range” includes a maximum and minimum. A given General Plan designation may have multiple corresponding zoning districts, including at least one district in which the maximum density may be achieved. Other zoning districts may have maximum densities that are less than the maximum
indicated by the General Plan
• Calculation of allowable units shall be rounded to the nearest whole number. Where the number is less than 0.5, it shall be rounded down. Where the number is 0.5 or greater, it may be rounded up.
• The number of units permitted on a given parcel may be affected by site resources and constraints, potentially hazardous conditions, climate- related factors (sea level rise, fire hazards, etc.), traffic and access
• (including wildfire evacuation constraints), the adequacy of infrastructure, City design policies, and prevailing densities in adjacent areas.
o The maximum net density shown on the General Plan
excludes density bonuses that may be provided for
affordable housing or other community benefits, in
accordance with State law and local policies.
• As required by State law, an accessory dwelling unit (ADU) or junior ADU shall not be counted as a dwelling unit for the purposes of calculating net density
• Areas in the “Downtown Mixed Use” General Plan category shall be exempt from the requirements of this policy and are instead subject to standards defined by the Downtown Precise Plan.

Program LU-1.8B: Minimum Densities. The net density of new development shall be no less than the lower end of the density range specified by the General Plan for that property.

Policy LU-1.10: Intensity of Non-Residential Development. Use the Floor Area Ratio limits on Figure 3-2 to determine the square footage of building space allowed on properties with non-residential General Plan designations. The following provisions apply:
• As with density, FAR is calculated on a “net” basis, and is based on the area of each parcel excluding streets and easements.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
• The maximum FAR stated by the General Plan is not guaranteed.

The square footage permitted on a given parcel may be affected by site resources and constraints, potentially hazardous conditions, climate- related factors (sea level rise, fire hazards, etc.), traffic and access
• (including wildfire evacuation constraints), the adequacy of infrastructure, and City design policies.
• The maximum FARs shown in Figure 3-2 exclude any residential development on the property. In the event that residential uses or mixed use projects are proposed on these sites, the maximum area is the sum of the FAR allowance plus the residential density allowance for the property. This Clause does not apply to Downtown San Rafael, which is regulated by the Downtown Precise Plan.

Policy LU-1.15: Planned Development Zoning. Encourage the use of Planned Development (PD) zoning for development on parcels greater than five acres when the application of traditional zoning standards would make it more difficult to achieve General Plan goals. The PD zoning designation allows flexible design standards that are more responsive to site conditions as well as the transfer of allowable General Plan and zoning density between contiguous sites under common ownership.

Consistent. The Property is zoned PD District and therefore is consistent with this policy.

Policy LU-1.17: Building Heights. Use General Plan Figures 3-3 and 3- 4 as the basis for determining “baseline” maximum building heights in San Rafael. Maximum heights should continue to be codified through zoning and any applicable Specific Plans or Precise Plans. In addition, the following specific provisions related to building heights shall apply:
• Height of buildings existing or approved as of January 1, 1987 shall be considered as conforming to zoning standards. Hotels outside of the Downtown Precise Plan boundary have a 54-foot height limit. Within Downtown, the height provisions of the Downtown Precise Plan apply (see Figure 3-4).
• As provided for by Policy LU-1.18, “baseline” building heights are subject to height bonuses where specific community benefits are provided, where a Variance or zoning exception is granted, or Consistent. Future development would be evaluated through the planning process and would be required to comply with applicable General Plan standards pertaining to height and State Density Bonus law, if applicable.

Therefore, the proposed acquisition is consistent with this policy.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
where a Transfer of Development Rights (TDR) is being
implemented.
• Heights may be increased by up to six (6) feet above the baseline building heights as necessary to mitigate the exposure of properties to sea level rise and other flooding hazards (e.g., raising the first floor of habitable floor space above anticipated tidal flood elevations).

Policy LU-2.12: Innovative Housing Types. Encourage non-traditional and innovative forms of housing that respond to local housing needs, changing demographics, high housing costs, remote work trends, and sustainability goals.

Consistent. Future development of this Property responds to the needs of San Rafael’s unsheltered population through temporary housing and access to services.

Policy LU-3.2: New Development in Residential Neighborhoods.

Preserve, enhance, and maintain the residential character of neighborhoods to keep them safe, desirable places to live. New development, redevelopment of existing buildings, and land use changes within and adjacent to residential areas should:
• Enhance neighborhood image and design quality
• Incorporate sensitive transitions in height and setbacks from adjacent properties
• Preserve historic, unique, and architecturally significant structures • Respect and enhance natural features and terrain
• Reduce exposure to hazards, including limited emergency vehicle access
• Include amenities such as sidewalks, pathways, trees, and other landscape improvements
• Maintain or enhance infrastructure service levels
• Meet expected parking demand
• Minimize reduction of views, privacy, and solar access for neighboring properties
Consistent. The Property is designated Community Commercial Mixed Use (21.8-43.6 units/net acre; maximum FAR 0.3), which anticipates future residential development. No development is proposed at this time, however, the future residential development would be evaluated through the planning process to ensure the future development complies with applicable development standards, including height, setbacks, parking, affordable housing, and environmental protection measures such as setbacks to creeks and landscaping requirements. Therefore, the acquisition is consistent with this policy.

Policy LU-3.3: Housing Mix. Encourage a diverse mix of housing choices in terms of affordability, unit type, and size, including opportunities for both renters and owners.

Consistent. Acquisition of the Property for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development is consistent with this policy.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
Policy LU-3-4: Property Maintenance. Require owners to maintain their properties in good condition and appearance and to eliminate unsafe and unhealthy conditions.

Consistent. The City of San Rafael proposes to acquire the property for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. The City is proposing to acquire the property and would ensure the property is maintained in good condition and appearance.

Therefore, the acquisition is consistent with this policy.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
Policy LU-3.4B: Conditions of Approval. Use the development review process to establish conditions of approval, including maintenance of landscaping and other improvements. Use building inspection and code enforcement processes to ensure that these conditions and other mitigation or monitoring responsibilities are carried out.

Consistent. The City of San Rafael proposes to acquire the property for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. No development is proposed at this time, however, the future residential development would be evaluated through the planning process to ensure the future development complies with requirements for stormwater facilities operations and maintenance, and waste and recycling maintenance for commercial and residential uses. Therefore, the acquisition is consistent with this policy.

NEIGHBORHOODS ELEMENT
Policy NH-4.1: North San Rafael. Maintain North San Rafael’s character as an attractive, suburban community with a strong sense of community identity and easy access to well-managed open space and parks, convenient shopping and services, and excellent schools. The City is committed to protecting and restoring North San Rafael’s natural environment, investing in multi-modal transportation improvements that make it easier to get around, creating new gathering places and activity centers, sustaining business vitality, and creating new housing options that respond to diverse community needs. Plans for North San Rafael need to recognize that this is a distinct and unique part of San Rafael.

Standards for density, design, traffic, and parking shall be tailored to reflect local context. North San Rafael residents will be invited to have a voice at the citywide level and be directly involved in shaping decisions about the future of their community.

Therefore, the acquisition is consistent with this policy.

Policy NH-4.9: Neighborhood Character. Strengthen Rafael Meadows and Redwood Village as attractive low to moderate density neighborhoods. Improve connectivity between these neighborhoods and nearby amenities, such as the Civic Center SMART station, the Marin Civic Center, and the North San Rafael Town Center, particularly for local pedestrians and cyclists.

Policy NH-4.10: Merrydale Area. Encourage attractive, productive land uses along Merrydale Road and Redwood Highway, including housing, commercial, and office uses near the Civic Center SMART station. Any development in this area should have a cohesive and positive impact on North San Rafael, maintain local quality of life, and be compatible with adjacent lower density residential uses.

Consistent. The Property is planned to be used as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development, which would provide housing in close proximity to the Civic Center SMART station, the Marin Civic Center, and the North San Rafael Town Center. No development is proposed at this time, however, the future residential development would be evaluated through the planning process to ensure the future development complies with this policy. Therefore, the acquisition is consistent with this policy.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale

COMMUNITY DESIGN AND PRESERVATION ELEMENT
Policy CDP-1.2: Natural Features. Recognize and protect the key natural features that shape San Rafael’s identity, including the Bay, local hills and ridgelines, creeks and wetlands, tree cover, and views of Mt.

Tamalpais and other natural landmarks. Height limits and other building standards should respect San Rafael’s natural topography and reinforce its sense of place, including the character and boundaries of individual neighborhoods.

Consistent The Property would be used as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. No development is proposed at this time and future development would be required to comply with the applicable standards contained in the General Plan. The Property is located in an urbanized area, surrounded by existing development of varying scale and intensity While distant hillsides are visible from locations surrounding the Property, there are no unique visual features or scenic resources available at the Property. No development is proposed at this time; however, the future residential development would be evaluated through the planning process to ensure site design elements are designed in accordance with what is appropriate and required for the property and surrounding area. Therefore, the proposed acquisition is consistent with these policies.

Policy CDP-1.5: Views. Respect and enhance to the greatest extent possible, views to the Bay and its islands; wetlands, marinas, and canal waterfront; hillsides and ridgelines; Mt. Tamalpais; Marin Civic Center; and St. Raphael’s bell tower; as seen from streets, parks, and public pathways.

Program CDP-1.5A: Evaluating View Impacts. Consider the impact of proposed development on views, especially views of Mt Tamalpais and nearby ridgelines. Where feasible, new development should frame views of ridges and mountains and minimize reduction of views, privacy, and solar access.

Policy CDP-4.9: Parking and Driveways. Encourage parking and circulation design that supports pedestrian movement and ensures the safety of all travelers, including locating parking to the side or rear of buildings, limiting driveway cuts and widths, and minimizing large Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
expanses of pavement. Parking should be screened from the street by landscaping and should provide easy access to building entrances.

Policy CDP-4.10: Landscape Design. Encourage—and where
appropriate require—privately owned and maintained landscaping that conserves water, contributes to neighborhood quality, complements building forms and materials, improves stormwater management and drainage, and enhances the streetscape. Natural elements such as plants should be an integral part of site development and should enhance the built environment while supporting water conservation goals.

Policy CDP-4.11: Lighting. Encourage lighting for safety and security while preventing excessive light spillover and glare. Lighting should complement building and landscape design.

Policy CDP-5.13: Protection of Archaeological Resources. Protect significant archaeological resources by:
• Consulting the City’s archaeological resource data base prior to issuing demolition or construction permits in known sensitive areas.
• Providing information and direction to property owners to make them aware of these resources and the procedures to be
followed if they are discovered on-site.
• Identifying, when possible, archaeological resources and potential impacts on such resources.
• Implementing measures to preserve and protect archaeological resources, including fines and penalties for violations.

Consistent The City plans to use the Property as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. No development is proposed at this time and future development would be required to comply with the applicable standards contained in the General Plan.

Should it be required when a development is proposed, the City of San Rafael would consult with representatives of the Federated Indians of Graton Rancheria (FIGR) and therefore, the acquisition is consistent with this policy.

Policy CDP-5.14: Tribal Cultural Resources. Coordinate with representatives of the Native American community to protect historic Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
Native American resources and raise awareness of San Rafael’s Native American heritage.

CONSERVATION AND CLIMATE CHANGE ELEMENT
Policy C-1.15: Landscaping with Appropriate Naturalized Plant Species. Encourage landscaping with native and compatible non-native plant species that are appropriate for the dry summer climate of the Bay Area, with an emphasis on species determined to be drought-resistant.

Diversity of plant species is a priority for habitat resilience.

Consistent. The City plans for the Property to be used as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. No development is proposed at this time and future development would be required to comply with the applicable standards contained in the General Plan. Therefore, the acquisition is consistent with this policy.

Policy C-1.19: Light Pollution. Reduce light pollution and other adverse effects associated with night lighting from streets and urban uses.

Policy C-2.2: Land Use Compatibility and Building Standards.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
Consider air quality conditions and the potential for adverse health impacts when making land use and development decisions. Buffering, landscaping, setback standards, filters, insulation and sealing, home HVAC measures, and similar measures should be used to minimize future health hazards.

Policy C-2.3: Improving Air Quality Through Land Use and Transportation Choices. Recognize the air quality benefits of reducing dependency on gasoline- powered vehicles. Implement land use and transportation policies, supportable by objective data, to reduce the number and length of car trips, improve alternatives to driving, reduce vehicle idling, and support the shift to electric and cleaner-fuel vehicles.

Program C-2.3A: Air Pollution Reduction Measures. Implement air pollution reduction measures as recommended by BAAQMD’s Clean Air Plan and supporting documents to address local sources of air pollution in community planning. This should include Transportation Control Measures (TCM) and Transportation Demand Management (TDM) programs to reduce emissions associated with diesel and gasolinepowered vehicles.

Policy C-2.4: Particulate Matter Pollution Reduction. Promote the reduction of particulate matter from roads, parking lots, construction sites, agricultural lands, wildfires, and other sources.

Policy C-3.2: Reduce Pollution from Urban Runoff. Require Best Management Practices (BMPs) to reduce pollutants discharged to storm drains and waterways. Typical BMPs include reducing impervious surface coverage, requiring site plans that minimize grading and disturbance of creeks and natural drainage patterns, and using vegetation and bioswales to absorb and filter runoff.

Policy C-3.3: Low Impact Development. Encourage construction and design methods that retain stormwater on-site and reduce runoff to storm drains and creeks.

Policy C-3.8: Water Conservation. Encourage water conservation and increased use of recycled water in businesses, homes, and institutions.

Local development and building standards shall require the efficient use Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
of water.

Policy C-3.9: Water- Efficient Landscaping. Encourage—and where appropriate require—the use of vegetation and water-efficient landscaping that is naturalized to the San Francisco Bay region and compatible with water conservation, fire prevention and climate resilience goals.

Policy C-4.2: Energy Conservation. Support construction methods, building materials, and home improvements that improve energy efficiency in existing and new construction.

Policy C-4.2B: Green Building Standards. Implement State green building and energy efficiency standards for remodeling projects and new construction. Consider additional measures to incentivize green building practices, low carbon concrete, and sustainable design.

Policy C-4.5: Resource Efficiency in Site Development. Encourage site planning and development practices that reduce energy demand and incorporate resource- and energy-efficient infrastructure.

Policy C-5.2: Consider Climate Change Impacts. Ensure that decisions regarding future development, capital projects, and resource management are consistent with San Rafael’s CCAP and other climate goals, including greenhouse gas reduction and adaptation.

PARKS, RECREATION, AND OPEN SPACE ELEMENT
Policy PROS-1.13: Recreational Facilities in Development Projects.

Encourage, and where appropriate require, the construction of on-site recreational facilities in multi-family, mixed use, and office projects to supplement the facilities available in City parks.

Consistent. Acquisition of the Property is for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. No development is proposed at this time and future development may consider including onsite recreational facilities. Therefore, the acquisition is consistent with this policy.

SAFETY AND RESILIENCY ELEMENT
Policy S-2.1: Seismic Safety of New Buildings. Design and construct all new buildings to resist stresses produced by earthquakes. The minimum level of seismic design shall be in accordance with the most recently adopted building code as required by State law.

Consistent. No development is proposed at this time. Future development would be required to be designed and constructed in accordance with the recommendations of the Geotechnical Investigation and the applicable requirements of the California Building Code, San Rafael General Plan Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
Program S-2.1B: Geotechnical Review. Continue to require soil and geologic hazard studies and peer review for proposed development as set forth in the City’s Geotechnical Review Matrix. These studies should determine the extent of geotechnical hazards, optimum design for structures and the suitability and feasibility of proposed development for its location, the need for special structural requirements, and measures to mitigate any identified hazards. Periodically review and update the Geotechnical Review Matrix to ensure that it supports and implements the Local Hazard Mitigation Plan by identifying potentially hazardous areas. Consider removing the procedures from the General Plan and instead adopting them as part of the Zoning Ordinance or through a separate resolution.
2040, and San Rafael Municipal Code. A Design-Level Geotechnical Report will be required prior to the issuance of grading or building permits.

Therefore, the acquisition is consistent with this policy.

Policy S-2.5: Erosion Control . Require appropriate control measures in areas susceptible to erosion, in conjunction with proposed development.

Erosion control measures should incorporate best management practices (BMPs) and should be coordinated with requirements for on-site water retention, water quality improvements, and runoff control.

Consistent. No development is proposed at this time. Future development would be required to prepare a Stormwater Pollution and Prevention Plan (SWPPP) to ensure address erosion impacts during the construction period. Similarly, preparation of a Stormwater Control Plan that describes how runoff will be routed to Low Impact Development (LID) stormwater treatment facilities during operation of the project will also be required.

Program S-2.5A: Erosion and Sediment Control Plans. Require Therefore, the acquisition is consistent with these policies.

Erosion and Sediment Control Plans (ESCPs) for projects meeting the criteria defined by the Marin County Stormwater Pollution Prevention Program, including those requiring grading permits and those with the potential for significant erosion and sediment discharges. Projects that disturb more than one acre of soil must prepare a Stormwater Pollution Prevention Plan, pursuant to State law.

Program S-2.5B: Grading During the Wet Season. Avoid grading during the wet season due to soil instability and sedimentation risks, Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
unless the City Engineer determines such risks will not be present.

Require that development projects implement erosion and/or sediment control measures and runoff discharge measures based on their potential to impact storm drains, drainageways, and creeks.

Policy S-3.8: Storm Drainage Improvements. Require new
development to mitigate potential increases in runoff through a combination of measures, including improvement of local storm drainage facilities. Other measures, such as the use of porous pavement, bioswales, and “green infrastructure” should be encouraged.

Program S-3.8A: Storm Drainage Improvements. Consistent with Countywide and regional stormwater management programs, require new development with the potential to impact storm drainage facilities to complete hydrologic studies that evaluate storm drainage capacity, identify improvements needed to handle a 100-year storm, and determine the funding needed to complete those improvements.

MOBILITY ELEMENT
Policy M-2.5: Traffic Level of Service. Maintain traffic level of service (LOS) standards that ensure an efficient roadway network and provide a consistent basis for evaluating the transportation effects of proposed development projects on local roadways. These standards shall generally be based on the performance of signalized intersections during the AM and PM peak hours. Arterial LOS standards may be used in lieu of (or in addition to) intersection LOS standards in cases where intersection spacing and road design characteristics make arterial LOS a more reliable and effective tool for predicting future impacts (See General Plan Consistent. Development of the site for residential development was evaluated in the General Plan EIR and a full analysis of anticipated impacts to transportation was provided in Chapter 4.16 (Transportation) of the EIR. No impacts were identified related to LOS with General Plan build out and therefore the acquisition is consistent with this policy.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
for full policy text).

Policy M-2.6: Traffic Mitigation Fees. Collect impact fees for new development based on the expected number of trips a project will generate. Fees should be used to implement transportation improvements as directed by City Council resolution.

Policy M-3.1: VMT Reduction. Achieve State-mandated reductions in Vehicle Miles Traveled by requiring development and transportation projects to meet specific VMT metrics and implement VMT reduction measures.

Consistent. The acquisition of the Property is for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. No development is proposed at this time and future development would be assessed to confirm the level of review required related to VMT. Therefore, the acquisition is consistent with this policy. Policy M-3.2: Using VMT in Environmental Review. Require an analysis of projected Vehicle Miles Traveled (VMT) as part of the environmental review process for projects with the potential to significantly increase VMT. As appropriate, this shall include transportation projects and land use/policy plans as well as proposed development projects.

Policy M-3.3: Transportation Demand Management Encourage, and where appropriate require, transportation demand measures that reduce VMT and peak period travel demand. These measures include, but are not limited to, transit passes and flextime, flexible work schedules, pedestrian and bicycle improvements, ridesharing, and changes to project design to reduce trip lengths and encourage cleaner modes of travel.

Policy M-3.6: Low- Carbon Transportation. Encourage electric and other low-carbon emission vehicles, as well as the infrastructure needed to support these vehicles.

Policy M-7.8: Parking for Alternative Modes of Transportation.

Designate parking spaces to incentivize and encourage carpooling, electric vehicles, and other more sustainable modes of travel.

Program M-7.8A: Charging Stations. Install additional chargers in public parking lots and garages for electric vehicles and e-bikes. Consider expanding electric charging requirements for private parking lots and structures.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
pedestrian movement, and vehicle traffic circulation. City plans and programs related to SMART should be periodically evaluated based on changes in funding, operating costs, ridership, and other factors impacting service levels.

Program M-4.3C: Arrival Experience. Create a welcoming experience for passengers arriving at the Downtown San Rafael and Civic Center stations, including wayfinding signage, easy transfers, and clearly marked, well-lit pathways to nearby destinations.

Policy M-5.1: Traffic Calming. Protect residential areas from the effects of speeding traffic or traffic from outside the neighborhood through appropriate traffic calming solutions such as speed humps, bulb-outs, speed limits, stop signs, and chicanes. Traffic calming measures shall not conflict with emergency response capabilities.

Policy M-6.1: Encourage Walking and Cycling. Wherever feasible, encourage walking and cycling as the travel mode of choice for short trips, such as trips to school, parks, transit stops, and neighborhood services.

Safe, walkable neighborhoods with pleasant, attractive streets, bike lanes, public stairways, paths, and sidewalks should be part of San Rafael’s identity.

Policy M-6.3: Connectivity. Develop pedestrian and bicycle networks that connect residents and visitors to major activity and shopping centers, existing and planned transit, schools, and other neighborhoods. Work to close gaps between existing facilities. Funding and prioritization for projects should consider relative costs and benefits, including such factors as safety, number of potential users, and impacts on parking.

Policy M-6.7: Universal Design. Design and construct bicycle and pedestrian facilities to serve people of all ages and abilities, including children, seniors, families, and people with limited mobility.

COMMUNITY SERVICES AND INFRASTRUCTURE ELEMENT
Policy CSI-3.2: Mitigating Development Impacts. Engage the Police and Fire Departments in the review of proposed development and building applications to ensure that public health and safety, fire prevention, and emergency access and response times meet current industry standards.

Consistent. Future development of the Property for residential uses was evaluated in the General Plan EIR, which determined that the site could be adequately served by existing police and fire service in the City. Future development would be evaluated through the planning and building permit processes to ensure adequate fire access is provided at the Property. Therefore, the acquisition is consistent with this policy.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
Policy CSI-4.2: Adequacy of City Infrastructure and Services. As part of the development review process, require applicants to demonstrate that their projects can be adequately served by the City’s infrastructure.

All new infrastructure shall be planned and designed to meet the engineering and safety standards of the City as well as various local service and utility providers
Consistent. Future development of the Property for residential use was evaluated in the General Plan EIR. As detailed in Section 4.14, Utilities and Service Systems of the Draft EIR, the Property would be served by the Las Gallinas Valley Sanitary District, MMWD, and Marin Sanitary. No development is proposed at this time and compatibility with this policy would be verified through the entitlement process. Therefore, the acquisition is consistent with this policy.

Policy CSI-4.8: Potable Water Supply and Delivery. Work with Marin Municipal Water District (MMWD) to meet projected water demand, encourage water conservation, and ensure the reliability and safety of the water supply and distribution system.

Policy CSI-4.9: Wastewater Facilities. Ensure that wastewater collection, treatment and disposal infrastructure is regularly maintained and meets projected needs. Improvements should be programmed to meet state and federal standards, respond to sea level rise and seismic hazards, repair and replace aging or leaking pipes, and protect environmental quality.

Policy CSI-4.17: Reducing Landfilled Waste Disposal. Reduce landfilled waste disposal and related greenhouse gas emissions by reducing material consumption; requiring curbside collection and composting of organic materials; increasing recycling, reuse, and resource recovery; and encouraging the use of recyclable goods and materials.

HOUSING ELEMENT
Policy: H-1.1: Collaboration and Coordination: Work with the County of Marin, local supportive service providers, and housing and social justice organizations to assist persons experiencing homelessness.

Consistent. The temporary use of the Property as an Interim shelter with services for unhoused individuals that will be made available through a collaboration between the City of San Rafael and County of Marin.

Therefore, the acquisition is consistent with this policy.

Policy H-1.3: Emergency Shelters: Allow for emergency shelters in appropriate zoning districts in order to accommodate San Rafael’s unsheltered population.

Consistent. The temporary use of the Property as an interim shelter to accommodate unsheltered San Rafael residents. Therefore, the acquisition is consistent with this policy.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
Policy H-3.5: Housing and Greenhouse Gas Emissions. Design and locate new housing in a way that supports the city’s greenhouse gas reduction goals. This includes building new housing near transit and in locations where it is easier to walk to shopping, restaurants, services, work, school, and other destinations. It also includes reducing the use of non-renewable fossil fuels through electrification, decreased natural gas use, energy efficiency, and tree planting.

Consistent. The acquisition of the Property is for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. No development is proposed at this time and compatibility with this policy would be verified through the planning process. Future construction would be required to comply with the applicable requirements of the CalGreen Code through the building permit process. Therefore, the acquisition is consistent with this policy.

Policy H-3.6: Sustainable Design. Encourage the use of building materials, construction methods, and designs that reduce environmental impacts and the consumption of non- renewable resources.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale
Policy H-4.1: Equitable Distribution of Affordable Housing:

Encourage the creation of affordable housing opportunities in all parts of the city, including areas where such housing does not exist today.

Consistent. The acquisition for permanent affordable housing will result in an affordable housing development in North San Rafael, near Civic Center and SMART station resources.  Therefore, the acquisition is consistent with this policy.

Policy H-4.3: Affordable Housing Requirements. Require the inclusion of affordable housing units in market-rate housing projects. Ensure that affordable housing requirements are economically viable, do not negatively affect overall housing production, and provide sufficient flexibility for the private sector. When new affordable units are created, pursue deed restriction and affordability terms of at least 55 years so that fewer tenants are at risk of being displaced in any given year.

Consistent. The acquisition of the Property is for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent one hundred percent affordable housing development, which will more than satisfy the City’s inclusionary housing requirement. Therefore, the acquisition is consistent with this policy.

Policy H-4.4: Affordability of Projects on Public Land: Prioritize the development of affordable housing rather than market rate units on surplus public land.

Consistent. The acquisition by the City is for the development of a permanent all affordable housing development.

Policy H-4.15: Housing and Infrastructure. Coordinate with water, sanitary sewer, and dry utility service providers to ensure that infrastructure is available to support anticipated housing development.

The cost of infrastructure maintenance and improvement should be equitably shared among property owners rather than assigned entirely to new development.

Consistent. Future development would be evaluated when through the planning process, including an evaluation of water, sanitary sewer, and utilities. Future development at the site was anticipated by the General Plan and would be served by public utilities for water, sanitary sewer, stormwater and other infrastructure. Therefore, the proposed acquisition is consistent with this policy.

ECONOMIC VITALITY ELEMENT
Policy EV-1.1: Quality of Life. Recognize the importance of a healthy economy to the quality of life, especially the ability to provide excellent schools, public safety services, public works, recreation, housing programs, and other government services.

Attachment A
General Plan 2040 Consistency Analysis
350 Merrydale

DIVERSITY, EQUITY, AND INCLUSION ELEMENT
Policy EDI-3.2: Affordable Housing Development. Encourage the development of affordable rental housing to meet the needs of all San Rafael households.

Consistent. The acquisition of the Property for use as an Interim Shelter for unhoused residents on a temporary basis and subsequent development of a permanent affordable housing development. The acquisition would support the provision of affordable housing and therefore, the proposed acquisition is consistent with this policy.

HOUSING ELEMENT PROGRAMS
Program 42: Zoning Text and Map Revisions. Allow Low Barrier Navigation Centers (LBNCs) in mixed use zones. This action is mandated by State law (AB 101). LBNCs are low-barrier, temporary serviceenriched shelters that help homeless individuals and families quickly obtain permanent shelter. State law now requires local jurisdictions to allow LBNCs as a permitted use in certain zoning districts, provided they meet specific criteria. These criteria include such features as allowing pets, providing privacy, giving residents the ability to store possessions, use of a coordinated entry system, and providing access to permanent housing. They must be allowed by right in mixed use and nonresidential zoning districts where multi-family housing is permitted.

Consistent. Government Code Section 65662 provides that a Low Barrier Navigation Center is a use by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses. The Property has a Planned Development zoning designation as set forth in Ordinance No. 1979, which allows for land uses in the High Density Residential (HR1) District land use classification. The uses allowed in a High Residential District are set forth in SRMC Chapter 14.04 and included mixed use.

Use of the Property as an interim shelter conforms with state law and is consistent with this program, and the acquisition is consistent with the General Plan.

CLERK'S CERTIFICATE
I, LINDSAY LARA, City Clerk of the City of San Rafael, and Ex-Officio Clerk of the Council of said City, do hereby certify that the foregoing ORDINANCE NO. 1979

AN ORDINANCE OF THE SAN RAFAEL CITY COUNCIL APPROVING A PLANNED

DEVELOPMENT REZONING FROM PLANNED DEVELOPMENT (PD) DISTRICT (PD1594) TO A REVISED PD (ZC19-002), INCLUDING THE RESCISSION OF PD 1594,

AND CREATION OF A NEW PD DISTRICT, TO ALLOW THE DEMOLITION OF EXISTING ONE-STORY BUILDINGS AND CONSTRUCTION OF NINE (9) THREESTORY RESIDENTIAL BUILDINGS WITH A TOTAL OF 45 "FOR SALE" MULTIFAMILY RESIDENTIAL UNITS (INCLUDING 9 BELOW-MARKET-RATE (BMR) UNITS), 94 PARKING SPACES, WITH NEW LANDSCAPING AND CREEKSIDE ENHANCEMENTS ON AN EXISTING 2.28 ACRE PARCEL LOCATED AT 350 MERRYDALE RD/3833 REDWOOD HWY (MERRYDALE TOWNHOMES) (APN'S: 179- 041-27 AND 179-041-28)
is a true and correct copy of an Ordinance of said City, and was introduced at a REGULAR meeting of the City Council of the City of San Rafael, held on the 3rd day of February 2020; a SUMMARY of Ordinance No. 1979 was published as required by City Charter in the MARIN INDEPENDENT JOURNAL, a newspaper published in the City of San Rafael, and passed and adopted as an Ordinance of said City at a REGULAR meeting of the City Council of said City, held on the 18th day of February 2020, by the following vote, to wit:

AYES:

NOES:

ABSENT:

COUNCILMEMBERS: Bushey, McCullough & Mayor Pro Tern Colin COUNCILMEMBERS: None
COUNCILMEMBERS: Gamblin & Mayor Phillips
WITNESS my hand and the official
Seal of the City of San Rafael this
24th day of February 2020

LINDSAY LARA
City Clerk
ORDINANCE NO. 1979

AN ORDINANCE OF THE SAN RAFAEL CITY COUNCIL APPROVING A PLANNED DEVELOPMENT REZONING FROM PLANNED DEVELOPMENT (PD) DISTRICT (PD1594) TO A REVISED PD (ZC19-002), INCLUDING THE RESCISSION OF PD 1594, AND CREATION OF A NEW

PD DISTRICT, TO ALLOW THE DEMOLITION OF EXISTING ONE-STORY BUILDINGS AND CONSTRUCTION OF NINE (9) THREE-STORY RESIDENTIAL BUILDINGS WITH A TOTAL OF 45 "FOR SALE" MULTI-FAMILY RESIDENTIAL UNITS (INCLUDING 9 BELOW-MARKET-RATE (BMR) UNITS), 94 PARKING SPACES, WITH NEW LANDSCAPING AND CREEKSIDE ENHANCEMENTS ON AN EXISTING 2.28 ACRE PARCEL LOCATED AT 350 MERRYDALE RD/3833 REDWOOD HWY (MERRYDALE TOWNHOMES)
(APN'S: 179-041-27 AND 179-041-28)
WHEREAS, on September 17, 1990, the San Rafael City Council adopted Ordinance No. 1594, which established a Planned Development (PD) allowing the land use regulations for use of the property as a day care for training up to 120 developmentally disabled adults, consistent with conditions of approval in the Use Permit (UP90-22) approved by the Planning Commission on August 14, 1990; and
WHEREAS, the current Planned Development (PD1594) District zoning for this site does not allow residential development and does not contain appropriate land use limitations and development standards, as required by Section 14.07.060 of Title 14 of the San Rafael Municipal Code (Zoning Ordinance); and
WHEREAS, on November 8, 2019, Michael Hooper of Campus Properties, on behalf of the property owner, Ridgewood Properties, submitted an application for PD Rezoning (ZC19-002) requesting to establish the required development standards for the proposed redevelopment of the site to allow the construction of 45 residential "for sale" condominium units, including parking, landscaping and creekside enhancements; and
WHEREAS, on November 8, 2019, Michael Hooper of Campus Properties, on behalf of the property owner, Ridgewood Properties, also submitted accompanying applications for Environmental and Design Review Permit (ED18-100), Tentative Subdivision Map (TS18-006), Subdivision Exception (EX19-012), Use Permit (UP18-039) and Environmental Review/Initial Study (IS 18-001) and these accompanying applications are being processed concurrent with the Rezoning application, as required by the Zoning Ordinance; and
WHEREAS, the application for the PD rezoning proposes to rescind the current PD 1594 and establish a new PD District for the property that would allow for multi-family residential use; and WHEREAS, the proposed PD District land use and development regulations for the property are presented in Exhibit B attached hereto and incorporated by reference. The PD proposes to:
a. Rescind the current PD 1594;
b. Create a new PD Zoning District for the 350 Merrydale Rd/3833 Redwood Highway property;
c. Establish permitted land uses in the new PD, that would mirror the current allowances in the High Density Residential (HR1) Zoning District;
d. Establish development standards, including parking requirements, consistent with the HR1 Zoning District; and
Attachment 2-1
WHEREAS, consistent with the requirement of the City of San Rafael Environmental Assessment Procedures Manual and the California Environmental Quality Act (CEQA) Guidelines, an Initial Study was prepared finding that the proposed new 45-unit townhome development would not result in significant environmental effects, in that revisions to the project have been made and mitigation measures are required to mitigate any potential adverse impacts to less-than-significant levels. Mitigation Measures were identified to reduce the level of significance to less than significant in the following topical areas (Aesthetics, Air Quality, Biological Resources, Cultural Resources, Hydrology and Water Quality, Noise, Transportation, and Tribal Resources); and WHEREAS, consistent with the provisions of CEQA, a Mitigation Monitoring and Reporting Program has been prepared to implement the project mitigation measures and to accompany the Mitigated Negative Declaration; and
WHEREAS, on July 17, 2018, the Design Review Board ("ORB" or "Board") reviewed the project as a conceptual review item. The Board was largely supportive of the proposed building design but recommended changes, including greater sensitivity to the neighbors resulting from the roof decks, increasing the front setback along Merrydale Rd. to comply with the required 15-foot front setback, improving recreational activities for children on the site, addition of a Community Room, and provide information for the required trash enclosure; and
WHEREAS, on July 25, 2019, the applicant hosted a neighborhood meeting to have a more informal presentation and discussion with surrounding neighbors; and WHEREAS, the applicant revised the project in response to the Board's comments, as well as to public comments during the ORB and neighborhood meetings, including 1) providing a broader range of unit types and sizes, 2) providing a community room and outdoor patio complete with furnishings, 3) increasing the creek setback to a minimum of 25 ft.; 4) providing crane pads for creek maintenance; 5) increasing the front setback on the Merrydale frontage from 8 feet 1 inch to 15 feet, 2 inches from the Merrydale property line; 6) eliminating the proposed roof decks; 7) eliminating the proposed Accessory Dwelling Units (ADU's); 8) eliminating the California Pepper tree species; 9) providing more details on the creek promenade area (which will also have amenities for youth to play); and 10) adding bio-retention information to the landscape plan. The side yard setback along the south property line was reduced from 10 feet to a setback of 7-9 feet (approximately) and some street parking was eliminated in order to re-design and eliminate the proposed building encroachment into the required 25' creek setback; and
WHEREAS, on August 6, 2019, the ORB conducted a duly noticed public meeting and reviewed the formal application and plans submitted for the project. The Board found that the changes had adequately addressed their prior comments during conceptual review and in conclusion, the Board voted to recommend approval of the project design, with some minor changes. The motion was made by Member Saude and second by Member Rege. Motion to recommend approval of the project design passed 3-0-2 with Members Paul, Rege and Saude voting "aye" and Members Kent and Summers absent. The recommended modifications included:
• Community /Recreation Room and adjacent Paseo promenade needs to provide a more integrated indoor/outdoor common amenity for the residents. • Visual impacts of AC units need to be mitigated better along public areas (Paseo and creek trail) and Merrydale frontage. The applicant is encouraged to explore greater landscape screening and/or relocating and grouping the AC units to the interior ends of the buildings. • The project needs to incorporate greater sustainability into the design, including, but not limited to, pre-wiring all garages for EV charging stations and pre-wiring all roofs for PV rooftop solar systems.

Attachment 2-2
WHEREAS, the applicant has incorporated all recommended changes in the revised plans; WHEREAS, the project, including the Notice of Availability of the Initial Study/Mitigated Negative Declaration, along with the planning applications were publicly noticed 30 days in advance of the scheduled December 3, 2019 Planning Commission hearing, through the following means: 1) publishing a legal ad in the Marin Independent Journal on November 9, 2019; 2) subject site was posted with a public notice regarding the Mitigated Negative Declaration and the project applications; and 3) notices were published in a local newspaper of general circulation in the area and mailed to surrounding property owners within 400 feet, pertinent agencies (including responsible and trustee agencies), organizations and special interest groups pursuant to CEQA Guidelines Section 15072; and WHEREAS, on December 10, 2019, the Planning Commission held a duly noticed public hearing on the proposed project accepting and reviewing public comment. On a 6-0-1 vote (Commissioner Samudzi absent) the Planning Commission adopted Resolutions Nos. 19-11 and 19-12 to recommend to the City Council: a) adoption of a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the project, and b) adoption of the PD District Rezoning, and c) conditional approval of the Environmental and Design Review Permit (ED18-100), Master Use Permit (UP19-039), Tentative Subdivision Map (TS18-006) and Subdivision Exception (EX19-012); and WHEREAS, on February 3, 2020, by adoption of a separate resolution, the City Council adopted a Mitigated Negative Declaration and approved a Mitigation Monitoring and Reporting Program for the project; and
WHEREAS, on February 3, 2020, the City Council held a duty noticed public hearing on the proposed project, accepting and considering all oral and written public testimony and the written report of the Department of Community Development; and
WHEREAS, the custodian of documents which constitute the record of proceedings upon which this decision is based is the Community Development Department of the City of San Rafael; and WHEREAS, as required by San Rafael Municipal Code Sections 14.07.090 and 14.27.060, the City Council makes the following findings in support of an ordinance to rescind the existing Planned Development (PD) District (PD 1594 ), as shown on the map contained in Exhibit "A" and further described in Exhibit "C," and to establish a new PD District as outlined in Exhibit "B" (350 Merrydale Residential Townhomes):

1. The Development Plan is consistent in principle with the San Rafael General Plan 2020 and other applicable City plans or policies in that the 350 Merrydale Rd. Residential Townhomes - Planned Development District document includes appropriate development standards, and is subject to an Environmental and Design Review Permit and a Master Use Permit, implementing the intent of Chapters 22 (Use Permit) and 25 (Environmental and Design Review Permit) of the San Rafael Zoning Ordinance (Title 14 of the San Rafael Municipal Code), Subdivision Ordinance (Title 15 of San Rafael Municipal Code), and the applicable General Plan land use policies, including:
a. The proposed project as designed and conditioned would be would be consistent with Land Use Element Policies LU-2 (Development Timing), ), LU-8 (Density of Residential Development), LU-10 (Planned Development Zoning), LU-12 (Building Heights), LU-23 (Land Use Compatibility), LU-23 (Land Use Map and Categories) given that the project: 1) would be approved at a time when there is adequate infrastructure to serve the proposed development; 2) 3) would not exceed the maximum density allowed in the GC Land Use category (34-72 units); 4) would not Attachment 2-3
exceed the maximum building height of 36 feet allowed for this area of San Rafael; and 5) has been designed to minimize potential visual impacts on the surrounding residnetial properties by limiting bulk, mass and height; b. The proposed project as designed and conditioned would be consistent with Housing Element Policies H-2 (Designs that Fit Into Neighborhoods), H-3 (Public Information and Participation), H-14 (Adequate Sites), H-15 (Infill Near Transit), and H-19 (lnclusionary Housing), in that: 1) residential development is allowed on the site per the General Commercial General Plan Land Use deisgnation; 2) the project design has been subject to review by the public and has been recommended for approval by the Design Review Board; 3) the project would add 45 units of housing within walking diatnce of mass transit, incluing the Civic Cemter SMART Train station, ½ mile from the project siteof the SMART Train; and 4) the project would include nine (9) below-market-rate (BMR) units, five (5) affordable at the low-income level and four ( 4) at moderate-icome level. c. The project is partially consistent with the applicable Neighborhoods Element Policy NH-2 (New Development in Residential Neighborhoods), NH-3 (Housing Mix), NH-17 (Competing Concerns), NH-151 (New Ddevelopment), NH-86 (Design Considerations for Development in the Vicinity of the Civic Center), NH-128 (Sidewalk Improvements), NH-129 (Neighborhood Parking), NH-142 (Redwood Highway Improvements), and NH-148 (Residential Uses at the end of Merrydale Rd.) in that: 1) the proposed new 45-unit development has been designed to be a transitional use between existing commercial development and residential development on Merrydale Rd. The building design minimizes impacts to surrounding residential properties by providing code compliant front and side setbacks and preserving some existing trees at the perimeter of the project site and proposing 55 new trees on site; 2) 94 parking spaces are provided on the site in compliance with the required parking requirement for 45 units, and 4 new onstreet parking spaces would be created along the east side of Merrydale Rd.; and 3) Redwood Highway would be extending and provide secondary access through the project site, allowing pedestrian access to the propsoed new "creek promenade" on the north side of the site as well as vehicular access to Merrydale Rd.
d. The project as proposed and as conditioned would be consistent with Community Design Element Policies CD-2 (Neighborhood Identity), CD-3 (Neighborhoods), CD-5 (Views), , CD-11 (Multifamily Design Guidelines), CD-14 (Recreational Facilities), CD-15 (Participation in Project Review), CD-18 (Landscaping), CD-19 (Lighting) in that the project design: 1) preserves, to the greatest extent possible, views the Civic Center from the adjacent one-story residential neighborhood. The building heignt is 33.5' (less than the 36' height limit allowed); 2) is generally in keeping with the mass and scale of adjacent commercial and residential development on the east side of Merrydale Rd. and would introduce a higher quality architectural design than currently present on the site; 3) provides landscaping to screen and enhance the project and site; 4) provides new "creek promenade" with landscaping and recreational amenities along Las Gallinas Creek to the north of the development; 5) creates adequate lighting without spillover onto adjacent properties or natural areas; and 6) has been reviewed by the Design Review Board and found to be consistent the applicable design policies of the General Plan and the City's Residential Design Guidelines. e. The project as proposed and as conditioned would be consistent with Circulation Policies C-5 (Traffic level of Service Standards), C-7 (Circulation Improvements Funding), C-8 (Eliminating and Shifting Peak Hour Trips), C-9 (Access for Attachment 2-4
Emergency Services), C-26 (Bicycle Plan Implementation) and C-31 (Residential Area Parking) in that the project: 1) would not exceed the acceptable level of service standards (LOS), LOS E, for both intersections or arterials; 2) would be required to pay its fair share towards traffic impacts to fund circulation impacts in order to maintain acceptable LOS standards for the General Plan; 3) would maintain adequate access for emergency services as determined by the City's Public Safety Departments; and 4) would create a new Class Ill Bike Lane along Meerydale Rd. and install a new sidewalk along the east side of Merrydale, thereby facilitating better pedestrian access along Merrydale Rd . as well as pedestrain access to the new creek promenade area,
f. The project as proposed and as conditioned would be consistent with Infrastructure Element Policies 1-2 (Adequacy of City Infrastructure and Services), and 1-10 ( Sewer Facilities) in that: 1) the appropriate utility agencies have reviewed the project and determined that the property is currently being served.

However, 1) Marin Municipal Water District (MMWD) has determined that the property's current annual water entitlement may be insufficient for the new uses and the purchase of additional water entitlement may be required, as well as compliance with all indoor and outdoor requirements of District Code Title 13 for water conservation; and 2) the Las Gallinas Valley Sanitation District (LGVSD) would continue to provide service to the project site, although the 45 proposed residential townhome units would result in an increase in intensity of development over existing uses. The LGVSD has reviewed the project, provided comments and will require that the development project submit an Application for Allocation of Capacity and pay additional capacity fees prior to submittal of a building permit.

The project design incorporates sanitary sewer infrastructure that connects all residences to the current LGVSD sanitary system, including two possible infrastructure improvements: a) a gravity system and flow diversion with an updated LGVSD pump station, or b) a lift-station (with control cabinet) located in the southeastern corner of the project site for pumping sanitary sewer to the main LGVSD pump station (which would also be updated). Either design solution would satisfy LGVSD requirements for sanitary sewer service.
g. The project as proposed and as conditioned would would be consistent with the Sustainability Element Policies SU-5 (Reduce Use of Non-Renewable Resources), SU-6 (Resource Efficiency in Site Development), SU-7 (New and Existing Trees), SU-10 (Zero Waste) in that given that: 1) the revised project plans include a provision that all town home units and stacked flats (to the extent practicable) will be provided with pre-wiring for photovoltaic rooftop solar systems; 2) all garage units will be provided with 220-volt power points suitable for EV charging; 3) the project will comply with the most recently adopted CBC (California Building Code) CalGreen and Title-24 Energy regulations; 4) conditions subject the project to the Marin Municipal Water District's most recently adopted water conservation and gray water regulations; 5) 55 new trees will be planted on site and 13 existing trees will be preserved on site; and 6) The project is proposing a covered and screened trash enclosure, the design and location of which has been reviewed and approved by Marin Sanitary Service (MSS).
h. The project as proposed and as conditioned would would be consistent with the Culture and Arts Element Policy CA-15 (Protection of Archaeological Resources) in that: 1) The existing buildings were constructed in 1967 or 1968 as a school facility but does not meet criteria as defined in CEQA Guidelines Section 15064.5.

The existing structures and site have been modified over the years and do not appear to have any historical significance; and 2) the site for original construction Attachm ent 2-5
of existing buildings would have disrupted any archaeological deposits if they were present. Indications of the disturbance would likely still be apparent when examining remnant soils. Based on the results of the cultural resources investigation conducted for the proposed project, no prehistoric or historic-period archaeological resources were identified within the project area. However, mitigation measures have been included in the IS/MND MMRP (CUL T-1 and CUL T-2) to protect any resources found during construction activities. i. The project as proposed and as conditioned would be consistent with Park and Recreation Element Policy PR-10 (On-site Recreation Facilities) in that the project will provide a 500 sq . ft. "community room" for the residents which will include a kitchen area and bathroom. The community room will also have sliding glass doors that open onto an approximately 500 sq. ft. patio area, with planters seating , and a BBQ area.
j. The project as proposed and as conditioned would be consistent with Safety Element Policies: S-1 (Location of Future Development), S-3 (Use of Hazard Maps in Development Review), S-4 ( Geotechnical Review), S-6 ( Seismic Safety of New Buildings), S-18 (Storm Drainage Improvements), S-25 (Regional Water Quality Control Board (RWQCB) Requirements), and S-32 (Safety Review of Development Projects) in that: 1) the project has been reviewed using the hazard maps and Geotechnical Review Matrix; 2) the geotechnical review and peer review concluded that the development on this site, with conditions, is feasible and appropriate from a geotechnical engineering standpoint; 3) the project would not include any hazardous materials or uses in it operations; 4) the development would be built to conform to current building and seismic safety codes; 5) the structure would be built in accordance with the Federal Emergency Management Agency (FEMA) regulations for this type of structure and use in a 500-year flood zone; 6) an erosion control plan would be required during contsruction of the project; 7) the drainage plan would direct all new run-off from the site into vegetative bio-retention areas before being released into the storm drain system; and 8) the project has been reviewed by the Police and Fire Department and found to be in conformance with their fire and crime prevention standards and would not pose a risk to public safety safety or impact their levels of service.
k. The project as proposed and as conditioned would be consistent with Noise Element Policies N-1 (Noise Impacts on New Development), N-2 (Exterior Noise Levels for Residential Use), N-3 (Planning and Design of New Development), N-4 (Noise from New Nonresidential Development), and N-5 (Traffic Noise from New Developmentin that the project: 1) Based on information in the Acoustical Report by Illingworth and Rodkin, the IS/MND analysis indicated that Building 2 through Building 7 would also exceed the 45 dBA Ldn threshold with windows partially open. With standard construction and forced-air ventilation, allowing occupants the option of keeping windows closed to control noise, Buildings 1, 2 8, and 9 would achieve the 40 dBA Ldn and 45 dBA Ldn thresholds. The east facades or buildings 3, 4, 5, and 6, facing US-101, would be exposed to 70 dBA Ldn. The east facade of Buildings 2 and 7 would be partially shielded by the buildings to the east and would be exposed to 67 dBA Ldn. The west facade of Buildings I and 9 would be exposed to traffic noise from Merrydale Rd. up to 58 dBA Ldn. These levels are in the "Clearly Unacceptable" range in Exhibit 31 of the General Plan 2020.

Therefore, the Acoutical Report recommended additional mitigation measures required prior to issuance of the building permit to required force-air ventilation and the appropriate STC window ratings to maintain interior noise levels at acceptable levels (see Environmental and Design Review Permit COA #25; 2) conditions and Attachm ent 2-6
mitigations have been incorporated to reduce any temporary impacts due to construction (Initial Study Mitigation Meausure NOISE-1 ); and 3) the Acoutical Report determined that the primary noise sources at the site would continue to be vehicular traffic on US- 101 and Merrydale Rd. US-101 is elevated by about 10 feet above the site. Based on traffic volumes provided in the Traffic Impact Assessment Report prepared for the proposed project, traffic noise levels are calculated to increase by 1 dBA along Merrydale Rd. under future conditions (2040) due to increases in traffic volumes on Merrydale Rd .. An increase in 1 dBA would be barely detectable to typical human hearing and is not considered a significant increase.

I. The project as proposed and as conditioned would be consistent with Conservation Element Policies CON-6 (Creek and Drainageway Setbacks), CON-7 (Public Access to Creeks), CON-8 (Enhancement of Creeks and Drainageways), CON-9 (Native and/or Sensitive Habitats), CON-14 (Special Status Species), and CON-16 (Landscape with Native Plant Species) in that the proposed project: 1) would maintain setbacks from the creek and provide creek enhancements with added landscaping and pedestrian access point; 2) would not impact a wildlife corridor since the site is currently developed and biological assessments have found no such corridors; 3) would not impact any senstive or threatened/endangered species or habitats; 4) has been conditioned to ensure that disturbance to any potential nesting birds be avoided during construction; and 5) would provide new trees and shrubs throughout the site, as well as bio-retention areas to facilitate proper site drainage.
m. The project as proposed and as conditioned would be consistent with Air and Water Quality Element Policies: AW-1 (State and Federal Standards), AW-2 (Land Use Compatibility), AW-4 (Particulate Matter Pollution Reduction), AW-7 (Local, State and Federal Standards), and AW-8 (Reduce Pollution from Urban Runoff) since the project: 1) would comply with local, state and federal air quality standards; 2) mitigation measures have been incorporated to address temporary air quality impacts during construction; 3) drainage systems have been designed to utilize vegetated swales before discharging drainage into storm drain systems or the creek; and 4) methods consistent with the Storm Water Pollution Prevention Standards of the Regional Water Quality Board have been incorporated into the design and conditions have been included to require compliance with these standards.

2. The applicant proposes to add 45 units of new residential development (market rate and below market rate (BMR) units) which will help serve to accommodate the projected need for 1,007 additional housing units in the City by the year 2023. The 3-story development will serve as a transition between the existing 2-story residential properties, commercial development, and the single-family lots in the interior Rafael Meadows neighborhood. The existing creek has been protected by providing a 25-foot setback and will be enhanced with new vegetation along the south bank and designed with a shared maintenance and pedestrian promenade. Further, the development plan has been reviewed and recommended for approval by the Design Review Board.

3. The applicant has demonstrated that the proposed development can be served by public facilities such as sewer, water, refuse services and other infrastructure resources that currently serve the existing development and are available to serve the proposed redeveloped site.

Attachment 2-7

4. The applicant has accepted the City's direction to use the HR1 property development standards for the new PD zoning, as this zoning district most closely approximates the adjacent property development standards. The proposed new development has been designed to be in compliance with the applicable HR1 property development standards, and the proposed project is not requesting any deviations (Variances) from the HR1 setbacks.

However, the City standard per San Rafael Municipal Code Section 15.06.050(c) is that local streets provide a minimum right-of-way of 60 feet and a minimum pavement width of 40 feet. Due to site constraints (creek and utility easements) the applicant is requesting an exception to allow a private street with an easement of 30 feet and a minimum pavement width of 20 feet and providing at least one sidewalk. This requires approval of an Exception request, pursuant to San Rafael Municipal Code Section 15.01 .120(c). The City Engineer has reviewed the project and is in support of the Exception request.

5. The auto, bicycle and pedestrian traffic systems presented on the Development Plan are adequately designed for circulation needs and public safety in that: a) the Development Plan proposes sidewalks throughout the development for pedestrian access, including access to the proposed new creek promenade area; b) the project triggers the creation of a new Class Ill Bike Lane along Merrydale Rd.; c) the emergency vehicle ingress and egress from the development would be provided through the existing roadway, as well as from an extension of Redwood Highway (allowing traffic to pass through the development and access Merrydale Rd.) and has been found to be adequate by the City of San Rafael Fire and Police Departments; d) the access and site layout has been reviewed by the appropriate City Departments and it has been determined that an Exception to street width standards is appropriate and acceptable; and e) code compliant parking (94 spaces) will be provided on site, with an additional 4 new on-street spaces added to the east side of Merrydale Rd.

6. The public health, safety and welfare are served by the adoption of the proposed PD District, in that the project as proposed and conditioned: a) would implement housing and environmental goals and policies adopted for this site in the San Rafael General Plan 2020; b) would conform to City standards for safety; c) would be consistent with the recommended mitigation measures presented in the Initial Study/Mitigated Negative Declaration prepared for this project; and d) would address project impacts to privacy, traffic, and parking through the inclusion of conditions of approval on the Master Use Permit and Environmental and Design Review Permit.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS:

DIVISION 1.

The Zoning Map of the City of San Rafael, California, adopted by reference by Section 14.01 .020 of the San Rafael Municipal Code is amended by reclassifying the following real property from PD-1594 (Planned Development District 1594) to PD (Planned Development - Ordinance No. 1979) District.

Said property so reclassified is located at 350 Merrydale Rd/3833 Redwood Highway, San Rafael, as shown on County Assessor's Parcel No's: 179-041-27 and 179-041-28), as shown on the map attached as Exhibit "A" and described in Exhibit "C", which are incorporated by reference.

DIVISION 2.

Any development of this property shall be subject to the conditions outlined Exhibit "B", the Merryda/e Townhomes - Planned Development District, which is attached hereto and made a part hereof.

Attachment 2-8
DIVISION 3.

If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause, or phrase be declared invalid.

DIVISION 4.

A summary of this ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the Council meeting at which it is adopted.

This ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this ordinance shall be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in the Marin Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California.

Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk, a certified copy of the full text of this ordinance along with the names of those Councilmembers voting for or against the ordinance.
. PHILLIPS, Mayor
ATTEST:
&f.~~
LINDSAY LARA, City Clerk
The foregoing Ordinance No. 1979 was introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the 3rd day of February 2020 and ordered passed to print by the following vote, to wit:

AYES: COUNCILMEMBERS: Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Bushey
and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the 18th day of February 2020.
f;'('S,(,tvv--,
LINDSAY LARA, City Clerk
Attachm ent 2-9
Exhibit A:

Exhibit B:

Exhibit C:

Rezoning Map
Planned Development District Standards
Legal Property Description
Attachment 2-10
Exhibit A

REZONING MAP
APN 179-041-27 APN 179-041-28
PD Rezoning to Rescind PD 1594 to create a new PD for these two properties known as 3833 Redwood Highway/350 Merrydale Rd
Attachment 2-11
Exhibit B

MERRYDALE TOWNHOMES -PLANNED DEVELOPMENT DISTRICT

1. PURPOSE OF PLANNED DEVELOPMENT DISTRICT
The purpose of the Planned Development District for the 45-unit residential development is to regulate the development of a 2.28-acre site known as the Merrydale Townhomes located at 350 Merrydale Road/3883 Redwood Highway.

2. LAND USE REGULATIONS
a) This PD permits a 45-unit residential condominium development on the 2.28-acre site, a 500 square foot Community Room for tenant use and a "Creek Promenade" area for use as a recreational amenity, as per approved plan Sheet SP-2.
b) All other land uses shall follow the land use regulations set forth in the High Density Residential (HR1) District land use classification as contained in Zoning Ordinance (SRMC 14.04.020). c) Private Usable Open Space: Balconies provided for the units shall remain open and not be enclosed or otherwise screened with mesh or other materials. d) Common Usable Open Space on site to include:
• Community Room: A flexible space to be used by residents with a clear interior dimension of 14' 6" x 20' 6" space, a kitchen area (with sink, stove and refrigerator) and bathroom and storage area. A ping pong table and stacking tables shall be provided for the space. The Community Room would have access to an exterior 500 sf patio area with planters, seating and a BBQ as shown in approved Plan Sheet L4. This community room shall remain available as a recreational space to all residents and shall not be converted into a living unit or a leasing office or storage space. • Creek Promenade: A creek promenade area shall be established along the north side of the project site, adjacent to the Las Gallinas Creek. The creek promenade shall be design with landscaping, removable fencing/benches/light bollards as per approved Plan Sheet L 1 through L3. Passive play area activities shall be installed for children as per approved Plan Sheet L3. The promenade shall be used as a recreational amenity and is also designed to provide access to equipment for creek maintenance activities. e) Site Lighting fixtures (number and type) shall be installed as per approved Plan Sheet L 11.

3. DEVELOPMENT STANDARDS
The Planned Development shall be developed in conformance with the development plans, associated drawings and reports submitted with the Planned Development as listed in the Exhibit section and the development standards set forth below.
a) Maximum Lot Coverage
The maximum lot coverage for the site shall be 60% as shown on the development plan. b) Floor Area Ratio: N/A
c) Residential Density: Maximum of 45 residential units. Accessory dwelling units (ADU's) or Junior Dwelling Unit (JDU's) are allowed on the site and do not count against the maximum residential density. Future ADU's on site shall be subject to the same regulations stipulated in the Zoning Ordinance or as modified by State law.

Attachment 2-12
Exhibit B

MERRYDALE TOWNHOMES -PLANNED DEVELOPMENT DISTRICT
d) Minimum Yards:
• Front: 15'
• Side: 5'
• Rear: 5'
e) Maximum Building Height
• Building height limits for this site is 36' per Exhibit 7 in San Rafael General Plan 2020. • Exclusions to the maximum height limits shall be as prescribed by Section 14.16.120 of the Zoning Ordinance, as amended.
f) Parking
• Residential parking shall be provided as proposed: 94 on-site parking spaces (87 garage spaces, including 20 tandem spaces) and 7 uncovered on-site, on-street spaces (including 1 ADA space). The ADA space and on-street spaces on site shall be located as shown on approved Plan Sheet SP-2.
• Parking for ADU or JADU's shall follow the prescribed parking requirement in the Zoning Ordinance.

4. EXHIBITS
a) Architectural Plans prepared by WHA Architects - Sheets SP1 through SP-7, and Architectural Plan Sheets A-1 through A-13.
b) Civil Engineering Plans prepared by Oberkamper & Associates consisting of Sheet C-1 through C-5.
c) Landscape Plan prepared by Ripley Design Landscape Architects, consisting of Sheets L 1 through L 12.
d) Photometric Study prepared by Associated Lighting Representatives consisting of Sheet 1.

5. AMENDMENTS
a) Amendments to uses that exceed the standards prescribed by this PD or propose uses that are not consistent with the land use regulations of the PD shall require an amendment to the PD District.
b) Amendments to the design, color or materials of the structures or minor site modifications to site improvements or addition of minor accessory structures, shall be administered through an Environmental and Design Review Permit.

Attachment 2-13
Exhibit C
Legal Property Description
The land referred to is situated in the County of Marin, City of San Rafael, State of California, and is described as follows:

Parcel B, as shown upon that certain Parcel Map entitled "Parcel Map Division of the Lands of Jacobson & Clayton Lots 1 to 13 and 22 to 31 Map of Subdivision "A" Gold Links Tract (2 Maps 7) City of San Rafael, California October 1982", filed for record November 9, 1983 in Book 21 of Parcel Maps, at Page 6, Marin County Records.

APN: 179-041-27
179-041-28
Attachment 2-14
Attachment 2
4927-4965-7973 v2 1

CAPITAL & OPERATING GRANT AGREEMENT

BETWEEN

THE COUNTY OF MARIN
AND

THE CITY OF SAN RAFAEL
Regarding
350 Merrydale Road
San Rafael, CA
This Grant Agreement (the "Agreement") is entered into as of November __, 2025, by and between the County of Marin, a political subdivision of the State of California (the "County"), and the City of San Rafael, a charter city in the State of California ("Grantee" or “City”).

RECITALS
WHEREAS, on January 31, 2024, the County and City submitted a joint application to the California Interagency Council on Homelessness for a grant from the Encampment Resolution Fund Round 3 (“ERF-3”) to address homeless encampments along and near the Mahon Creek Path in downtown San Rafael, also including encampments on Francisco Boulevard West and Andersen Drive (collectively, the “Mahon Encampment”). The Mahon Encampment is the largest encampment in the City and currently the largest municipal encampment in the County.

WHEREAS, on April 18, 2024, the California Interagency Council on Homelessness awarded the County and City a $5,999,241.68 ERF-3 grant to address the Mahon Encampment and provide services and support to its sixty-five (65) residents over a three-year period.

Specifically, the ERF-3 grant funds outreach services, housing-based case management services, an Interim Shelter (defined below), and delivery of permanent affordable housing for Mahon Encampment residents. The ERF-3 grant terminates on June 30, 2027.

WHEREAS, on November 19, 2024, the County and the City entered into a Collaborative Agreement (“Collaboration Agreement”) wherein these State ERF-3 grant funds were accepted and appropriated for use, as well as an additional $500,000 in funding from State Senator Mike McGuire (“McGuire Funds”) and $500,000 in matching County General Funds (“County Match Funds”), totaling an additional $1,000,000 in funding for services for the Mahon Encampment.

WHEREAS, City has identified 350 Merrydale Road in San Rafael, California, as more particularly described in Exhibit A (the "Property"), as an ideal location for permanent affordable housing near transportation, transit, jobs, amenities and other services, and also to be used as an interim homeless shelter for homeless individuals primarily from the Mahon Encampment during the City’s planning process for permanent affordable housing on the Property.

Attachment 2
4927-4965-7973 v2 2
WHEREAS, the City’s purchase of the Property and the County’s financial support to implement strategies to address encampments as outlined in the Collaboration Agreement, including but not limited to, the strategies for Housing & Support and Prevention by providing for an Interim Shelter that will qualify as a Low Barrier Navigation Center (defined below) to serve the residents of the Mahon Encampment and a limited number of additional individuals currently experiencing homelessness in the City for the remainder of the ERF-3 grant period (through June 30, 2027) while the City goes through the process of developing permanent affordable housing at the Property.

WHEREAS, the parties recognize that the process of developing the Project (defined below) will require the City to take additional discretionary actions, such as issuing a Request for Proposals to select an affordable housing developer and negotiating and entering into a lease disposition and development agreement with the selected developer.; and WHEREAS, notwithstanding the foregoing, the City, in developing the Project (defined below), will use good faith efforts to keep affordability levels as low as possible (i.e., minimum 80% below AMI) dependent on funding and other factors developed in the Project’s proforma.

WHEREAS, City wishes to be awarded from the County, and the County wishes to extend to City, a grant of up to Eight Million Dollars ($8,000,000.00) to assist with financing the purchase and acquisition of the Property and initial site set up of the Interim Shelter, as defined herein (the "Grant”), and as detailed in Exhibit B (“Approved Interim Shelter Acquisition and Site Set-Up Budget”).

WHEREAS, the County is providing this Grant to finance acquisition and site set-up costs for the Interim Shelter, as defined below, and the Project, to help achieve financial feasibility for the Interim Shelter and the Project, and to support the Interim Shelter and potential development of the Project ideally situated near jobs, transit, and other amenities.

NOW, THEREFORE, the Parties agree that the foregoing recitals are true and correct and agree as follows:

ARTICLE 1 DEFINITIONS AND EXHIBITS
Section 1.1 Definitions
The following capitalized terms have the meanings set forth in this Section 1.1 wherever used in this Agreement, unless otherwise provided:
(a) "Agreement" shall mean this Grant Agreement.
(b) “Approved Annual Operating Budget” shall mean the annual operating budget for the Interim Shelter operations commencing no sooner than January 1, 2026 and operating through June 30, 2027, unless extended per Section 3.9(e) herein, including Interim Shelter program operations such as personnel, contracted service providers, utilities, food, etc., as approved by the County, and attached hereto and incorporated herein as Exhibit C.

Attachment 2
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(c) "Approved Interim Shelter Acquisition and Site Set-Up Budget" shall mean the budget for acquisition of the Property and initial set-up costs for the Interim Shelter, as approved by the County, and attached hereto and incorporated herein as Exhibit B. (d) "Bed" means one of the Interim Shelter (non-congregate) structures to be constructed on the Property, as distinguished from the Project and its units to be ultimately developed on the site.
(e) “Cap Shelter Population" shall mean the maximum number of individuals eligible to be served at any given time under the ERF-3 grant agreement and is equal to 65 individuals, consisting of approximately 53 individuals at the Mahon Encampment current sanctioned camping Area and approximately 12 individuals at the Andersen Road encampment. Both the City and the County recognize that, due to the transient nature of homelessness, these counts may vary slightly.
(f) “Maximum Shelter Population” shall mean the total number of individuals served by the Interim Shelter during its operation and shall equal a total of 70 unique individuals, consisting of the Cap Shelter Population above plus, through program attrition and contingent upon available funding, approximately 5 additional individuals. No more than 65 individuals may be served by the Interim Shelter at any one time.
(g) "County" shall mean the County of Marin, a political subdivision of the State of California.
(h) “County Match Funds” shall mean the $500,000 in County general funds awarded from the County to the City, on November 19, 2024, in a Collaborative Agreement that “matched” a State award of $500,000 (the “McGuire Funds”). (i) "Default" shall have the meaning set forth in Section 4.1 below. (j) “ERF” shall mean Encampment Resolution Fund grant, or ERF-3. (k) “Good Neighbor Policy” shall mean a set of guidelines and practices aimed at fostering positive relationships between the Interim Shelter and its surrounding community, attached hereto and incorporated herein as Exhibit D.
(l) "Grant" shall mean the County grant to Grantee pursuant to this Agreement in the total amount of up to Eight Million Dollars ($8,000,000.00). (m) "Grantee" shall mean the City of San Rafael.
(n) “Interim Shelter” shall mean the up to sixty-five (65) beds of temporary shelter for homeless individuals at the Property, which shall consist of either pallet cabins, trailers, or similar temporary structures. Interim Shelter includes a Low Barrier Navigation Center. (o) “Low Barrier Navigation Center” or “LBNC” means a low barrier, temporary, service-enriched shelter focused on helping homeless individuals and families to quickly obtain permanent housing as authorized by Government Code Sections 65660, 65664, and 65666.

Attachment 2
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(p) “Mahon Encampment” means homeless encampments along and near the Mahon Creek Path, including encampments on Francisco Boulevard West (now closed) and Andersen Drive, as more fully described in the ERF-3 Grant application. (q) “Mahon Encampment Resident” means an individual documented as residing in the Mahon Encampment at the time services funded by the ERF-3 grant were initially provided (November 2024), as determined by the City and the County Health and Human Services Department.
(r) “McGuire Funds” shall mean the $500,000 in funding from State Senator Mike McGuire that was allocated to the City through the Collaborative Agreement, dated November 19, 2024 and that was “matched” by the County of Marin (e.g., the “County Match Funds”) . (s) “Operating Costs” shall mean the total operating costs on a fiscal year basis for the Interim Shelter, starting no earlier than January 1, 2026 (FY 2025-26) and operating through June 30, 2027 (FY 2026-27), per Exhibit C.
(t) "Parties" shall mean the County and Grantee.
(u) "Project" shall mean the up to eighty (80) units of affordable housing developed long-term, and attendant site improvements thereon.
(v) "Property" shall mean the real property located in the County, more particularly described in the attached Exhibit A.
(w) "Regulatory Agreement" is defined in Section 2.3
(x) "Unit" means one of the affordable housing units in the Project, as distinguished from the up to sixty-five (65) beds for the Interim Shelter. (y) Exhibits
The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:

EXHIBIT A: Legal Description of the Property
EXHIBIT B: Approved Interim Shelter Acquisition and Site Set-Up Budget EXHIBIT C: Approved Annual Operating Budget
EXHIBIT D: Good Neighbor Policy
ARTICLE 2 GRANT
Section 2.1 Grant.

Attachment 2
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The County hereby agrees to grant an amount of Eight Million Dollars ($8,000,000.00) to City’s designated account, on the terms and conditions set forth herein, with payment of Seven Million Dollars ($7,000,000.00) via wire transfer within three days of execution of this agreement by both parties and the final payment of One Million Dollars ($1,000,000.00) due to the City via wire transfer to City’s designated account within five (5) business days of the City providing evidence to the County of an executed contract procuring the temporary structures for the Interim Shelter.

Section 2.2 Use of Grant Funds.

The Grantee shall use the Grant Funds to fund the acquisition of the Property and towards the Initial Set Up of the Interim Shelter, as defined herein and in Exhibit B. The Grantee shall not use the Grant funds for any other purpose without the prior written consent of the County.

Section 2.3 Acquisition and Initial Set Up.

Grant funds shall only be used for property acquisition and subsequent one-time initial site set up activities, as more fully set forth in Exhibit B, not to exceed a total of $8,000,000.00:
(a) Acquisition of the site, including brokerage, legal, and appraisal costs. (b) Purchase of pallet cabins, trailers, or other temporary structures to be used as Interim Shelter.
(c) Purchase and site set up costs associated with mobile showers, temporary restrooms, or other agreed facilities for operation of the Interim Shelter, and incidental relocation costs. (d) Costs associated with making the Property and Interim Shelter facilities accessible.

Section 2.4 Compliance with Regulatory Agreement.

County and Grantee have concurrently herewith executed a Regulatory Agreement (“Regulatory Agreement”), which will be recorded, on or about the date of this Agreement, as a deed restriction in the Official Records of Marin County and will specify terms and conditions of affordability for the Project’s units assisted through this Agreement. Grantee, as a condition of this Agreement, shall cause the Project, if constructed, to be operated in accordance with the "Regulatory Agreement," including ensuring that the required Units are available to, and occupied by, low-income households as defined in the Regulatory Agreement.

Section 2.5 Term.

The Grant shall have a term through June 30, 2029. Section 5.4, Section 5.8, and Section

5.10 shall survive termination of this Agreement.

Attachment 2
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Section 2.6 No Secondary Financing.

At no time during the Term of this Agreement may the Property be encumbered by the lien of any lender or creditor except as may be specifically approved in advance in writing by the County.

ARTICLE 3 GRANT REQUIREMENTS
Section 3.1 Financial Accountings and Post-Completion Audits.

No later than one hundred eighty (180) days following the opening of the Interim Shelter, Grantee shall cause to be provided to the County a financial accounting of all sources and uses of funds for the Interim Shelter. No later than one hundred eighty (180) days following opening of the Interim Shelter, Grantee shall cause to be submitted to the County an audited financial report showing the sources and uses of all funds utilized for the purchase of the Property and set up of the Interim Shelter. Reports shall be provided by the City to the County every three months (quarterly) that provide 1) Number of unique clients served, 2) Cumulative expenses and revenues, 3) Number of complaints, 4) Number of public safety calls for service, 5) Number of clients transitioned to housing, 6) Number of vacant beds, and 7) Daily utilization rate.

Section 3.2 Information.

Grantee shall provide any information reasonably requested by the County in connection with the Interim Shelter or development of the Project, within thirty (30) calendar days following the County's written request.

Section 3.3 Records.
(a) Grantee shall maintain complete, accurate, and current records pertaining to the Interim Shelter and development of the Project for a period of five (5) years after the creation of such records and shall permit any duly authorized representative of the County to inspect and copy records. Records must be kept accurate and current. (b) The County shall notify Grantee of any records it deems insufficient. Grantee shall have thirty (30) calendar days after the receipt of such a notice to correct any deficiency in the records specified by the County in such notice, or if a period longer than thirty (30) days is reasonably necessary to correct the deficiency, then Grantee shall begin to correct the deficiency within thirty (30) days and correct the deficiency as soon as reasonably possible.

Section 3.4 Audits.

Grantee shall make available for examination at reasonable intervals and during normal business hours to County all books, accounts, reports, files, and other papers or property with respect to all matters covered by this Agreement, and shall permit County to audit, examine, and make excerpts or transcripts from such records. County may make audits of any conditions relating to this Agreement.

Attachment 2
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Section 3.5 Maintenance and Damage.

During the Term of this Agreement, Grantee shall cause the Property to be maintained in good repair and in a neat, clean, and orderly condition.

Section 3.6 Notice of Litigation.

Grantee shall promptly notify the County in writing of any litigation materially affecting the Property or any uses thereon and of any claims or disputes that involve a material risk of such litigation.

Section 3.7 Nondiscrimination.

The Grantee covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Grantee or any person claiming under or through the Grantee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Property.

Section 3.8 Shelter Crisis Declaration.

Coterminous with adoption of this Agreement, the City has declared a Shelter Crisis pursuant to Government Code section 8698 et seq. and has adopted by ordinance reasonable local standards and procedures for the design, site development, and operation of homeless shelters and the structures and facilities therein, as set forth in Government Code section 8698.4.

Section 3.9 Interim Shelter.
(a) The Interim Shelter shall not exceed sixty-five (65) beds at the Property. Grantee shall be solely responsible for establishing the Interim Shelter and ensuring its compliance with local, state, and federal laws. Shelter beds may consist of pallet cabins, trailers, or other similar temporary structures. Grantee shall own and be solely responsible for the Interim Shelter.

Grantee shall be responsible for the shelter structures and shall be solely responsible for safely disposing of, or taking possession of, shelter structures when they are no longer needed at the Property. Grantor shall not be responsible for the Interim Shelter, including, but not limited to, the shelter beds and shelter structures.
(b) City shall prioritize Mahon Encampment residents for placement in the Interim Shelter structures to ensure closure of the Mahon Encampment in downtown San Rafael, including the Andersen Drive encampment. The Cap Population is 65 individuals being served at any one time, to reside in the 65 total beds at the site, as defined in Section 1.1(e). Through program attrition and contingent upon available funding, no more than 70 unique individuals Attachment 2
4927-4965-7973 v2 8
may be eligible to participate in the program during the Term of this Agreement, to constitute the Maximum Shelter Population as defined in Section 1.1(f). (c) Within three (3) business days of learning that an Interim Shelter bed is vacant or will become vacant, City shall inform the County’s HHS Director or their designee. Within twenty (20) business days of this notification, HHS and City shall meet and confer in good faith regarding whether the Interim Shelter bed should be offered to another individual as described in Section 3.9(b).
(d) The Interim Shelter at the Property shall close by June 30, 2027, except under the conditions outlined in (e)(i-iv) below; and no new or additional individuals shall be placed in the Interim Shelter after June 30, 2026, except under conditions outlined in (e)(i-iv) below. Any Interim Shelter beds that become vacant after June 30, 2026 shall be closed to new entries, unless permitted as described in 3.9(b) above. City shall be responsible for disposing of or removing the Interim Shelter structures after closure of the Interim Shelter. (e) Notwithstanding the foregoing, the Interim Shelter may continue to operate for up to two additional one-year periods, until June 30, 2029, under the following conditions:
(i) The Interim Shelter may continue to operate until June 30, 2028, if by January 1, 2027, the City raises either public or private funds to continue the operation of the Interim Shelter in a manner similar to and of the same standard as its operation in its initial year. The City shall provide County with a detailed description of its fundraising efforts and results by January 1, 2027. In the event such funds are not raised, no new or additional individuals shall be placed in the Interim Shelter one full year in advance of its closure, or June 30, 2027. In no event shall County have any obligation to “backfill” any shortfalls in the City’s private fundraising campaign.
(ii) The Interim Shelter may continue to operate until June 30, 2029, if by January 1, 2028, the City raises additional public or private funds to continue the operation of the Interim Shelter in a manner similar to and of the same standard as its operation in its initial year. The City shall provide County with a detailed description of its fundraising efforts and results by January 1, 2028. In the event such funds are not raised, no new or additional individuals shall be placed in the Interim Shelter one full year in advance of its closure, or June 30, 2028. In no event shall County have any obligation to “backfill” any shortfalls in the City’s private fundraising campaign.
(iii) Timelines associated with City public or private fundraising efforts, entrants to the site, and/or operations/closure of the site, are defined as follows:

City Fundraising
Deadline
No New Entries Deadline
(Assuming Lack of Funds)
Operations/Site
Closure
January 1, 2027 June 30, 2027 June 30, 2028
January 1, 2028 June 30, 2028 June 30, 2029
(iv) Parties expressly agree that in no event shall the Interim Shelter at the Property operate beyond June 30, 2027 unless extended through no later than June 30, 2029 as Attachment 2
4927-4965-7973 v2 9
described in this Section 3.9(e)(i)-(iv). Not less than ninety (90) days before the Interim Shelter’s scheduled closure, the City shall meet and confer with HHS to discuss plans to safely exit Interim Shelter residents by the closure date.
(f) The Interim Shelter shall open no sooner than January 1, 2026. City and County shall equally share (50/50) mutually agreed-upon operating costs for the term of the ERF-3 grant, or until June 30, 2027, as detailed in the Approved Annual Operating Budget, totaling no more than $2,001,250.00 annually on a fiscal year basis, attached as Exhibit C to this agreement (“Approved Annual Operating Budget”).
(i) Operating costs shall first be funded with remaining ERF-3 grant funds, estimated by the City to total approximately $1,500,000.00 as of December 31, 2025. As described in the Collaboration Agreement, the City-County 50/50 cost sharing shall apply only after all ERF-3, McGuire, and/or County Match funds are fully expended. If operations costs exceed the costs in the Approved Annual Operating Budget, the costs shall be borne at a rate of 75% for the City and 25% for the County through June 30, 2027. The Parties expressly agree that County shall not be responsible for any operating costs of the Interim Shelter after June 30, 2027.
(g) Any operations at the site extending beyond June 30, 2027 shall be funded solely by the City. City intends to apply for additional grant funding and lead a fundraising campaign to fully offset the costs of operation extending until June 30, 2028 or June 30, 2029, as described in Section 3.9(e)(i)-(iv). County shall support the City’s grant seeking and fundraising efforts; however, such support shall be at the sole discretion of County. In no event shall County have any obligation to “backfill” any shortfalls in the City’s private fundraising campaign. (h) The County provides funds from its Housing Trust for affordable housing, typically at a level of no more than $100,000 per unit. The Parties recognize that entitlement of the Project is subject to future discretionary actions as described in the recitals and within the City’s sole discretion. If the City chooses to exercise its discretion to entitle a modified Project or to not entitle the Project, City shall pay County $100,000 for every unit less than eighty (80) that it fails to entitle as affordable housing by June 30, 2028, up to a total of $8,000,000.00. City’s payment of these funds shall be due to County by September 30, 2028, if the City choses to entitle a modified Project or to not entitle the Project.

Section 3.10 Miscellaneous.
(a) Upon acquisition, City shall be the owner of the Property and solely responsible for managing the Property in all respects and providing all safety services (including the San Rafael Police Department, San Rafael Fire Department, and Specialized Assistance for Everyone (SAFE) Team) to residents of the Interim Shelter.
(b) City shall be fully responsible for all community outreach related to the Project and the Interim Shelter and will coordinate all communications with the County. (c) City shall be fully responsible for all communications with Interim Shelter residents at the Property, which is located within the City’s jurisdiction, as well as with surrounding area community residents. City shall collaborate in partnership with the County on all Attachment 2
4927-4965-7973 v2 10
communications to the general public. Any project signs, media contacts, media release or other public communications shall specifically mention the partnership between the County and City. (d) County Health and Human Services will continue to provide services to Interim Shelter residents and will ensure that Interim Shelter residents receive the same or similar services that they received while residing at the Mahon Encampment, as specified in the ERF-3 grant and the Collaborative Agreement between the City and County. Such services provide a range of support to individuals with the goal of placing individuals on pathways to permanent housing.
(e) Any Regional Housing Needs Allocation credits awarded for the affordable housing Project shall be shared equally between the City and County, subject to any applicable state law restrictions, the amendment of which shall be the responsibility of the County in cooperation with the City.

Section 3.11 Compliance with State and Federal Laws, Rules, Guidelines, and Regulations.

City agrees to comply with all state and federal laws, rules, guidelines, and regulations that are applicable to the Interim Shelter and Project, including those that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and accessibility. City shall be responsible for ensuring the Interim Shelter and the services provided therein meet accessibility requirements under applicable State and Federal law.

ARTICLE 4 DEFAULT AND REMEDIES
Section 4.1 Events of Default.

Each of the following shall constitute a "Default" by Grantee under this Agreement:
(a) Breach of Covenants. Failure by Grantee to duly perform, comply with, or observe any of the conditions, terms, or covenants of any of this Grant Agreement, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the County to the Grantee, shall constitute Default; provided, however, that if a different period or notice requirement is specified under any other section of this Article 4, the specific provisions shall control.
(b) Assignment; Attachment. Grantee shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution. (c) Liens on Property. There shall not be filed any claim of lien (other than liens in the Approved Development Budget or otherwise approved in writing by the County) against the Property or any part thereof, and the continued maintenance of said claim of lien or notice to Attachment 2
4927-4965-7973 v2 11
withhold for a period of twenty (20) days without discharge or satisfaction thereof or provision therefor (including, without limitation, the posting of bonds) satisfactory to the County. (d) Condemnation. The condemnation, seizure, or appropriation of all or the substantial part of the Property.
(e) Representation or Warranty Incorrect. Any Grantee material representation or warranty contained in this Agreement, or in any application, financial statement, certificate, or report submitted to the County in connection with this Grant Agreement, proves to have been incorrect in any material respect when made.
(f) Failure to Reimburse the County for a Modified Project or No Project. If the City’s reimbursement obligations under Section 3.9(h) of this Agreement are triggered, and the City fails to reimburse the County as specified in Section 3.9(h) of this Agreement.

Section 4.2 Remedies.

The occurrence of any Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the County or City or automatically where so specified, relieve the County of any obligation to make or continue the Grant and shall give the County and City the right to proceed with any and all remedies set forth in this Agreement, including but not limited to the following:
(a) Specific Performance. The County and City shall have the right to bring an action or proceeding at law or in equity to require the other Party to perform its obligations and covenants under this Grant Agreement or to enjoin acts or things which may be unlawful or in violation of the provisions of this Grant Agreement.
(b) Repayment of Grant. Upon an event of Default, the County shall have the right to require repayment of the Grant in full.
(c) Other Remedies. The County and City shall have the right to exercise any and all rights and remedies afforded by this Agreement, law, equity or otherwise, including obtaining the appointment of a receiver.

Section 4.3 Remedies Cumulative.

No right, power, or remedy given to the County or City by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the County or City by the terms of any such instrument, or by any statute or otherwise against the other Party and any other person or entity. Neither the failure nor any delay on the part of the County or City to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the County or City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.

Attachment 2
4927-4965-7973 v2 12
ARTICLE 5 GENERAL PROVISIONS
Section 5.1 Relationship of Parties.

Nothing contained in this Agreement shall be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the County and Grantee or its agents, employees or contractors, and Grantee shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement. Grantee has and retains the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services under the Agreement. In regard to the purchase of the Property, construction and operation of the Project, Grantee shall be solely responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding, and all other laws and regulations governing such matters, and shall include requirements in each contract that contractors shall be solely responsible for similar matters relating to their employees. Grantee shall be solely responsible for its own acts and those of its agents and employees.

Section 5.2 No Claims.

Nothing contained in this Agreement shall create or justify any claim against the County by any person that Grantee may have employed or with whom Grantee may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the purchase of the Property, the construction or the operation of the Project.

Section 5.3 Amendments.

No alteration or variation of the terms of this Agreement shall be valid unless made in writing by the Parties.

Section 5.4 Indemnification.

The Grantee shall indemnify, defend and hold the County harmless against all claims made against it and expenses (including reasonable attorneys' fees) which arise out of or in connection with the purchase of the Property and the development of the Interim Shelter or the Project, except to the extent such claim arises from the negligence, violation of law or willful misconduct of the County, its agents, and its employees.

Section 5.5 Non-Liability of County and City Officials, Employees and Agents. (a) No member, official, employee or agent of the County shall be personally liable to Grantee in the event of any default or breach by the County or for any amount which may become due to Grantee or its successor or on any obligation under the terms of this Agreement. (b) No member, official, employee or agent of the Grantee shall be personally liable to the County in the event of any default or breach by the Grantee or for any amount which may Attachment 2
4927-4965-7973 v2 13
become due to the County or its successor or on any obligation under the terms of this Agreement.

Section 5.6 No Third-Party Beneficiaries.

There shall be no third-party beneficiaries to this Agreement.

Section 5.7 Notices, Demands and Communications.

Formal notices, demands, and communications between the Parties shall be sufficiently given if and shall not be deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally, to the principal office of the Parties as follows:

COUNTY:

County of Marin
Office of the County Executive
3501 Civic Center Drive
San Rafael, CA 94903
Attn: County Executive
GRANTEE:

City of San Rafael
Attn: City Manager
1400 5th Avenue
San Rafael, CA 94901
With a copy to:

City Attorney’s Office
Attn: Chief Assistant City Attorney
1400 5th Avenue, Suite 202
San Rafael, CA 94901
Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected Party may from time to time designate by mail as provided in this Section. Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery or refusal of delivery (or attempted delivery if undeliverable). Copies of notice, sent to Grantee shall also be sent to any member of Grantee who requests such notice in writing and provides its address.

Section 5.8 Applicable Law and Venue.

Attachment 2
4927-4965-7973 v2 14
This Agreement shall be governed by California law, and the venue shall be Marin County, California.

Section 5.9 Parties Bound.

Except as otherwise limited herein, the provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their heirs, executors, administrators, legal representatives, successors, and assigns. Without limiting the foregoing, the County shall have the right to assign its rights under the Grant Agreement to any third party, whether on a collateral assignment basis or otherwise, and in connection therewith the County shall have the right to deliver and otherwise disclose to such third party all information relating to the Grantee, any partners of the Grantee, and/or the Project and the Property, including without limitation financial and credit information.

Section 5.10 Attorneys' Fees.

If any lawsuit is commenced to enforce any of the terms of this Agreement, the prevailing Party will have the right to recover its reasonable attorneys' fees and costs of suit from the other Party.

Section 5.11 Severability.

If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.

Section 5.12 Force Majeure.

In addition to specific provisions of this Agreement, performance by either Party shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; quarantine restrictions; freight embargoes; lack of transportation; or court order; or any other similar causes beyond the control or without the fault of the Party claiming an extension of time to perform. An extension of time for any cause will be deemed granted if notice by the Party claiming such extension is sent to the other within thirty (30) days from the commencement of the cause. In no event shall the County be required to agree to cumulative delays in excess of three hundred sixty-five (365) days.

Section 5.13 County Approval.

Whenever this Agreement calls for County approval, consent, or waiver, and such action is requested of the County in the normal course of the administration and disbursement of the Grant, the written approval, consent, or waiver of the County Executive of the County shall constitute the approval, consent, or waiver of the County, without further authorization required from the County Board of Supervisors. The County hereby authorizes the County Executive of the County to deliver such approvals or consents as are required by this Agreement, or to waive such requirements under this Agreement, on behalf of the County. Any consents or approvals Attachment 2
4927-4965-7973 v2 15
required under this Agreement shall not be unreasonably withheld or made, except where it is specifically provided that a sole discretion standard applies. The County Executive of the County is also hereby authorized to approve, on behalf of the County, requests by Grantee for reasonable extensions of time deadlines set forth in this Agreement. The County shall not unreasonably delay in reviewing and approving or disapproving any proposal by Grantee made in connection with this Agreement. Notwithstanding the foregoing, any material change to this Agreement shall be in the form of an Amendment and approved by the County Board of Supervisors.

Section 5.14 Waivers.

Any waiver by the County of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failure by the County to take action on any breach or default of Grantee or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Grantee to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the County to any act or omission by Grantee shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the County's written consent to future waivers.

Section 5.15 Title of Parts and Sections.

Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of the Agreement's provisions.

Section 5.16 Entire Understanding of the Parties
The Grant Agreement constitutes the entire understanding and agreement of the Parties with respect to the Grant.

Section 5.17 Multiple Originals; Counterpart.

This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
[THE SIGNATURE PAGE FOLLOWS]
Attachment 2
4927-4965-7973 v2 16
WHEREAS, this Agreement has been entered into by the undersigned as of the date first above written.

COUNTY:

MARIN COUNTY, a political subdivision of the
State of California
By:

Name: __________________________________
Its:

Approved as to Form:

By:

Name: __________________________________
Its:

GRANTEE:

City of San Rafael, a political subdivision of the
State of California
By:

Name: __________________________________
Its:

Attachment 2
4927-4965-7973 v2 17

EXHIBIT A
Legal Description of the Property
Real property in the City of San Rafael, County of Marin, State of California, described as follows:

Parcel B, as shown upon that certain Parcel Map entitled "PARCEL MAP DIVISION OF LANDS OF JACOBSON AND CLAYTON LOTS 1 TO 13 AND 22 TO 31 MAP OF SUBDIVISION "A" GOLF LINKS TRACT(2 MAPS 7), City of San Rafael, California October 1982", filed for record February 9, 1983 in Book 21 of Parcel Maps, at Page 6, Marin County Records.

APN: 179-041-27 and 179-041-28
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EXHIBIT B
Approved Interim Shelter Acquisition and Site Set-Up Budget (County Contribution Not to Exceed $8.0M)
Category Detail Amount / Formula
Land Acquisition Costs Purchase Price $6,700,000
Land Acquisition Costs Brokerage $201,000
Land Acquisition Costs Legal $50,000
Land Acquisition Costs Appraisal $2,700
Site Set Up Costs Temporary Structures $1,129,000
Site Set Up Costs Pallet Structures (Used) $60,000
Site Set Up Costs FF&E $158,600
Site Set Up Costs Fencing $80,000
Site Set Up Costs Relocation Process $15,000
Site Set Up Costs Utility Connections (PG&E) $75,000
Site Set Up Costs Site Prep Contingency $44,000
Total Acquisition and Start-Up Costs $8,515,300
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EXHIBIT C
Approved Annual Operating Budget
(FY 2025-26 and FY 2026-27)
Category Detail Amount /
Formula
Office & Supplies Annual $10,000
Utilities Water $24,000
Utilities Gas $50,000
Utilities Electricity $65,000
Transportation Transit Passes $15,000
Food Annual $237,250
FY26 FS Global Contract Annual - Site Management $750,000 FY26 Defense Block Contract Annual - Security $850,000
Total Annual Operating Expenses $2,001,250
Cost per Participant (70 unique indiv.) $28,589
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EXHIBIT D
DRAFT Good Neighbor Policy and Code of Conduct
Interim Shelter at 350 Merrydale Road
Joint Policy of the City of San Rafael and County of Marin

1. Purpose and Intent
The City of San Rafael and County of Marin are committed to ensuring that the Interim Shelter at 350 Merrydale Road operates safely, respectfully, and in a way that positively integrates with the surrounding neighborhood.

This Good Neighbor Policy, in coordination with the Resident Code of Conduct, establishes shared expectations for residents, staff, and community members. Every resident must review and sign both documents prior to entry. Continued participation in the program is contingent upon adherence to these expectations.

2. Goals

1. Support and encourage high-quality services that are well integrated into, and supported by, the community.

2. Maintain peaceful, safe, clean, and crime-free neighborhoods for both program participants and surrounding residents and businesses.

3. Facilitate direct, honest communication among all community partners, including the City’s Police and Fire Departments, County of Marin Health and Human Services, transit agencies, and other service providers.

4. Ensure clear, accessible points of contact and resolution for addressing community concerns or disputes.

San Rafael City CouncilNovember 17, 2025

San Rafael City Council
November 17, 2025