San Ramon City Council
October 10, 2023

CITY COUNCIL AGENDA
October 10, 2023

WE PROVIDE EFFICIENT DELIVERY OF QUALITY PUBLIC SERVICES THAT ARE

ESSENTIAL TO THOSE WHO LIVE AND WORK IN SAN RAMON
David E. Hudson, Mayor • Mark Armstrong, Vice Mayor
Scott Perkins, Councilmember • Marisol Rubio, Councilmember • Sridhar Verose, Councilmember Council Chamber
7000 Bollinger Canyon Road
REGULAR MEETING – 7:00 PM
Agenda Questions: Please contact the City Clerk (925) 973-2539 or [email protected] EFFECTIVE OCTOBER 9, 2023 VIRTUAL AND TELEPHONE PUBLIC COMMENTS DURING CITY COUNCIL AND COMMISSION MEETINGS WILL BE DISCONTINUED.

PLEASE REFER TO THE END OF THE AGENDA TO REVIEW OPTIONS FOR PARTICIPATION IN THE MEETING.

Unless stated otherwise on the agenda, every item on the agenda is exempt from CEQA Guidelines Sections 15060(c), 15061(b)(3), 15273, 15378, 15301, 15323 and/or Public Resources Code Section 21065.

1. CALL TO ORDER/ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. ANNOUNCEMENTS

3.1 Changes and Additions to the Agenda

3.2 If you wish to speak under Public Comment or regarding an agenda item please fill out a speaker card located in the back of the room and submit it to the City Clerk.

4. PUBLIC COMMENT
Members of the audience are encouraged to address the City Council on any non-agenda item relating to the business of the City Council. Comments are limited to three (3) minutes, or less time if a large number of speakers are anticipated. A speaker may not allocate their time to another speaker. All remarks shall be addressed to the City Council.

Comments from the public on non-agenda items may also be submitted by email to [email protected]. Comments received by email will not be read aloud; however, they will be forwarded to the Council for their consideration. If you wish to present your comments to the public, you may do so in-person during this Public Comment period. No Council action can be taken at this meeting on issues raised during public comment. 2 City Council Meeting – October 10, 2023
During public comment, members of the public are permitted to address the City Council only on the following:
 Any non-agenda item relating to the business of the City Council.  Items that are on the Consent Calendar, including requests to pull an item from the consent calendar and the reason why you wish to pull the item or items. Please note that the decision to remove the item from the Consent Calendar is strictly at the discretion of the City Council.
 Requests for Future Agenda Items.
 Special Presentation Items under Section 6 of tonight’s Agenda.  Items that are not on the agenda and are within the City Council’s jurisdiction.

5. CONSENT CALENDAR
Consent Calendar items are considered routine and are acted upon by the City Council with a single action. Members of the audience wishing to provide public input may request (by email to the City Clerk or under Item 4 Public Comment) that the City Council remove the item from the Consent Calendar. Members of the public may request that items be removed from the Consent Calendar, however, the decision to remove the item is solely at the discretion of the City Council.

With respect to the approval of resolutions and ordinances, the reading of the title thereto shall be deemed a motion to waive a reading of the complete resolution or ordinance and unless there is a request by a Council member that the resolution or ordinance be read in full, further reading of the resolution or ordinance shall be deemed waived by unanimous consent of the Council.

5.1 Minutes of the City Council Regular Meeting – September 26, 2023 Recommendation: Accept Minutes

5.2 Minutes of the City Council/Planning Commission Joint Special Meeting - October 3, 2023
Recommendation: Accept Minutes

5.3 Resolution No. 2023-104 - Authorizing Approval of Purchases for the Provision of Industrial and Safety Supplies, Parts, Equipment, and Materials with W.W.

Grainger, Inc. for a Total Cumulative Two-Year Amount Not to Exceed $300,000 through June 30, 2025
Recommendation: Approve Resolution No. 2023-104

5.4 Resolution No. 2023-105 - Authorizing the Expenditure for the Purchase of Four Utility Trucks, Two Chevrolet Bolt EUVs, Parts, and Related Vehicle Services from Dublin Chevrolet, in an Amount Not to Exceed $376,000; and Declaring Four Utility Trucks and Two Pickup Trucks as Surplus and Authorizing Their Sale at Auction
Recommendation: Approve Resolution No. 2023-105

5.5 Resolution No. 2023-106 - Authorizing the Mayor to Execute the First Amendment for the Interagency Agreement Between San Ramon Valley Fire Protection District and City of San Ramon Regarding Joint Use Public Safety Complex
Recommendation: Approve Resolution No. 2023-106
3 City Council Meeting – October 10, 2023

6. SPECIAL PRESENTATIONS

6.1 Proclamation Declaring October 2023 as Domestic Violence Awareness Month.

Presentation to Megha Sharma Narang, Rewire Community and Shailaja Dixit, Narika.

6.2 Introduction of new Deputy City Manager Scott Koll by City Manager Steven Spedowfski.

7. DEFERRED CONSENT ITEMS

8. UNFINISHED BUSINESS

9. NEW BUSINESS

9.1 Public Hearing: Introduction of Ordinance (Next in Line) Repealing and Replacing Chapter XII (Inclusionary Housing (Residential Development Projects)) of Title C (Construction, Development and Land Use), Division C4 (Land Development) of the San Ramon Municipal Code
Recommendation: Introduce the Ordinance, Waive the Reading, Open the Public Hearing, Receive Public Testimony, Close the Public Hearing and Set the October 24, 2023, City Council Meeting for Ordinance Adoption.

Staff Report by Analisa Garcia, Assistant Planner

10. CITY MANAGER'S AND CITY COUNCIL MEMBERS' COMMENTS /

MATTERS INITIATED

11. ADJOURNMENT
I hereby certify the agenda was posted 72 hours before the noted meeting. This agenda is posted in accordance with Government Code Section 54954.2(a).

Dated: October 6, 2023
4 City Council Meeting – October 10, 2023
HOW TO VIEW OR PARTICIPATE IN THE MEETING:

The public is invited to participate in the meeting using any of the following methods:

1. IN-PERSON
San Ramon City Hall, Council Chamber, 7000 Bollinger Canyon Road Members of the public can provide in-person comments in the Council Chambers.

To make a request for disability-related accommodation to participate in the meeting, please contact the City Clerk’s Office 48 hours in advance of the meeting.

2. WRITTEN COMMUNICATION BY EMAIL
Public comments may be submitted via e-mail to [email protected]. Any public comments received up until two (2) hours prior to the scheduled start time of the meeting will be distributed to the City Council via e-mail, provided at the meeting in the red binder, and posted online at https://www.sanramon.ca.gov/public_comment.

Written comments received after the cut-off time will be provided to the City Council the day following the meeting.

Please include “Public Comment” in the subject line. In the body of the email please include your name and the item you wish to comment on. Written public comment will not be read aloud during the meeting.

3. TO VIEW OR LISTEN ONLY
As a courtesy and technology permitting, the public will have the opportunity to view the meeting via one-way feed by the options below. However, the City cannot guarantee that the public’s remote access to any meeting will be uninterrupted, and technical difficulties may occur from time to time. In those instances, so long as the public may still attend the meeting in person, the meeting will continue. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments prior to the meeting or to attend the meeting in person. a. Zoom: https://cityofsanramon.zoom.us/j/94671178090
Webinar ID: 946 7117 8090
b. Zoom Phone Numbers: +1 (669) 900-6833
c. The City’s YouTube Channel: www.sanramon.ca.gov/YouTube Regular City Council meetings are broadcast on Contra Costa Television (CCTV) (Channel 27) on Wednesdays at 7:00 p.m. and Thursdays at 1:00 p.m. immediately following the meeting. Regular City Council meetings are also broadcast on AT&T UVerse (Channel 99).

ATTENDEE CONDUCT
There will be zero tolerance for any person addressing the Council making profane, offensive and disruptive remarks, or engaging in loud, boisterous, or other disorderly conduct, that disrupts the orderly conduct of the public meeting. Specifically, it is important for all speakers to adhere to the following guidelines for participation in this meeting:
5 City Council Meeting – October 10, 2023
a. No profanity or obscenity.
b. Refrain from personal threats or attacks.
c. Refrain from hateful epithets and demeaning language based on any person’s race, religion, sexual orientation, ethnicity, gender, or disability. d. Respect all people that are present or watching.

At the discretion of the Mayor, a speaker may forfeit speaking time for any of the following reasons:
a. Exceeding the allotted time to speak;
b. Yelling, screaming, or other behavior that renders this Council unable to continue the meeting;
c. Excessive profanity or slander;
d. Specific threats or “fighting words” that incite violence; or e. Speech that is outside the subject matter jurisdiction of the Council or the specific agenda item in which you are speaking.

While the City of San Ramon ensures the First Amendment rights of its citizens, we do not accept nor endorse any offensive or hateful comments made during our meetings. The City of San Ramon celebrates the diversity of our community, and we strive to be a welcoming and open community for all.

MINUTES OF THE

CITY OF SAN RAMON

CITY COUNCIL MEETING
September 26, 2023

1. CALL TO ORDER/ROLL CALL
The meeting was called to order at 7:00 p.m.

A
Also in attendance: City Manager Steven Spedowfski, City Attorney Martin Lysons, City Clerk Christina Franco, Police Chief Denton Carlson, and Parks and Community Services Division Manager Brad Morris.

2. PLEDGE OF ALLEGIANCE
A Flag Ceremony and Pledge of Allegiance was led by Boy Scout Troop 84.

3. ANNOUNCEMENTS

3.1 Changes and Additions to the Agenda

3.2 If you wish to speak under Public Comment or regarding an agenda item please fill out a speaker card located in the back of the room and submit it to the City Clerk. If you are participating remotely, click the "Raise Your Hand" button on your computer or *9 on your telephone to request to speak when Public Comment is being taken on the agenda item.

3.3 Board, Committee and Commission Meetings
A complete list of upcoming meetings may be found on the City's website at:
www.sanramon.ca.gov. Subscription service is available at the link for automatic meeting notification. Contact the City Clerk with questions, (925) 973-2539.

4. PUBLIC COMMENT
Public Comment was received from Paul Lee.

5. CONSENT CALENDAR
Cm. Verose's motion to approve the consent calendar items 5.1-5.5 was seconded by Cm.

Perkins. The motion passed 5-0-0-0.

Attendee Name Title Status Arrived
Dave Hudson Mayor Present 7:00 PM
Mark Armstrong Vice Mayor Present 7:00 PM
Scott Perkins Councilmember Present 7:00 PM
Marisol Rubio Councilmember Present 7:00 PM
Sridhar Verose Councilmember Present 7:00 PM

5.1 Packet Pg. 5
Minutes Acceptance: Minutes of Sep 26, 2023 7:00 PM (CONSENT CALENDAR) 2 City Council Meeting – September 26, 2023
RESULT: ADOPTED [UNANIMOUS]
MOVER: Sridhar Verose, Councilmember
SECONDER: Scott Perkins, Councilmember
AYES: Hudson, Verose, Armstrong, Perkins, Rubio

5.1 Minutes of the City Council Regular Meeting - September 12, 2023 Recommendation: Approve Minutes

5.2 Register of Demands as Presented by the City Treasurer (Period Ending August 31, 2023)
Recommendation: Approve Register of Demands

5.3 Resolution No. 2023-100 - Accepting Certain Offers of Dedication for Storm Drain Easements in Subdivisions 2985, 3023 and 3029, Portions of Rancho San Ramon, and Generally Located Southeasterly of the Intersection of Broadmoor Drive and Sedgefield Avenue
Recommendation: Approve Resolution No. 2023-100

5.4 Resolution No. 2023-101 - Authorizing the Creation of the Job Class Specifications of City/District Engineer and Temporary Seasonal Maintenance Worker for the Public Works Department
Recommendation: Approve Resolution No. 2023-101

5.5 Resolution No. 2023-102 - Approving the 2023 Purchasing Policy Recommendation: Approve Resolution No. 2023-102

6. SPECIAL PRESENTATIONS

7. DEFERRED CONSENT ITEMS

8. CITY COUNCIL APPOINTMENTS

8.1 Arts Advisory Committee Appointment
Staff report by Brad Morris, Parks and Community Services Division Manager.

The Mayor opened public comment. There was no public comment. The Mayor closed public comment.

Cm. Perkins' motion to approve the Parks and Community Services Commission recommendation to appoint Srinivasa Manapragada to serve as Alternate #2 on the Arts Advisory Committee with a term expiring March 2025 was seconded by Vice Mayor Armstrong. The motion passed 5-0-0-0.

5.1 Packet Pg. 6
Minutes Acceptance: Minutes of Sep 26, 2023 7:00 PM (CONSENT CALENDAR) 3 City Council Meeting – September 26, 2023
RESULT: APPROVED [UNANIMOUS]
MOVER: Scott Perkins, Councilmember
SECONDER: Mark Armstrong, Vice Mayor
AYES: Hudson, Verose, Armstrong, Perkins, Rubio

9. UNFINISHED BUSINESS

10. NEW BUSINESS

10.1 Resolution No. 2023-103 - Approving the Addition of Five Full Time Employees, to Include One Police Sergeant, One Police Corporal, Two Police Officers, One Office Specialist, and the Reclassification of One Full Time Police Officer Position into a Full Time Police Sergeant Position
Recommendation: Approve Resolution No. 2023-103
Staff report by Denton Carlson, Chief of Police.

The Mayor opened public comment. There was no public comment. The Mayor closed public comment.

Cm. Perkins' motion to approve Resolution No. 2023-103 approving the addition of five full time employees, to include one Police Sergeant, one Police Corporal, two Police Officers, one Office Specialist, and the reclassification of one full time Police Officer position into a full time Police Sergeant position was seconded by Cm. Rubio. The motion passed 5-0-0-0.

RESULT: APPROVED [UNANIMOUS]
MOVER: Scott Perkins, Councilmember
SECONDER: Marisol Rubio, Councilmember
AYES: Hudson, Verose, Armstrong, Perkins, Rubio

11. CITY MANAGER'S AND CITY COUNCIL MEMBERS' COMMENTS /

MATTERS INITIATED

12. PUBLIC COMMENT
Public comment was received from Joyce Carr.

13. ADJOURNMENT
The meeting was adjourned at 7:55 p.m.

5.1 Packet Pg. 7
Minutes Acceptance: Minutes of Sep 26, 2023 7:00 PM (CONSENT CALENDAR)

MINUTES OF THE

CITY OF SAN RAMON

CITY COUNCIL / PLANNING COMMISSION

JOINT SPECIAL MEETING
October 3, 2023

1. CALL TO ORDER
Mayor Hudson called the meeting to order at 6:05 p.m.

Attendee Name Title Status Arrived
Dave Hudson Mayor Present 6:00 PM
Mark Armstrong Vice Mayor Present 6:23 PM
Scott Perkins Councilmember Present 6:00 PM
Marisol Rubio Councilmember Present 6:00 PM
Sridhar Verose Councilmember Present 6:00 PM
Eric Wallis Chair Present 6:00 PM
Jean Kuznik Vice Chair Present 6:00 PM
S. Ashar Ahmed Commissioner Present 6:00 PM
Gary Alpert Commissioner Present 6:00 PM
Dave Curtis Commissioner Present 6:00 PM
Vice Mayor Armstrong arrived at 6:23 p.m.

Also in attendance: City Manager Steven Spedowfski, City Attorney Martin Lysons, City Clerk Christina Franco, Community Development Director Debbie Chamberlain, Planning Services Division Manager Lauren Barr and Senior Planner Cindy Yee.

2. CITY COUNCIL AND PLANNING COMMISSION BUSINESS

2.1 Joint City Council and Planning Commission Public Hearing: Draft General Plan 2040 Update (GPA 2023-0002), Rezone (RZ 2023-0002); Prezone (PZ 2023- 0001); Specific Plan Amendment (SP 2023-0001); and Environmental Review (ENVR 2023-0003)
Recommendation: Staff Recommends that the City Council and Planning Commission Receive the Staff Report, Open the Public Hearing, and Receive Public Comments, and Provide Feedback to Staff and the Consultant on the Draft General Plan 2040 Update. After the Close of the Joint City Council and Planning Commission Public Hearing, the Planning Commission Will Continue Their Public Hearing on the Project to the October 17th and November 7 th Planning
Commission Meetings.

Staff report by Cindy Yee, Senior Planner.

Cm. Perkins' motion to open the public hearing was seconded by Cm. Rubio. The motion passed 10-0-0-0.

5.2 Packet Pg. 8
Minutes Acceptance: Minutes of Oct 3, 2023 6:00 PM (CONSENT CALENDAR) 2 City Council Meeting – October 3, 2023
Public comment was received from Brent Smith, Tywon Sacontrie, Garry Chaban, Joel Redmon, and John Sathri.

Written public comment was received from Sue Bock.

Cm. Perkins' motion for the City Council to close its public hearing was seconded by Cm.

Rubio. The motion passed 5-0-0-0
Cm. Ahmed motion for the Planning Commission to continue its Planning Commission public hearing to October 17, 2023 was seconded by Cm. Curtis. The motion passed 5-0- 0-0.

3. ADJOURNMENT
The meeting was adjourned at 8:44 p.m.

5.2 Packet Pg. 9
Minutes Acceptance: Minutes of Oct 3, 2023 6:00 PM (CONSENT CALENDAR)

CITY COUNCIL STAFF REPORT
DATE: October 10, 2023
TO: City Council/City Manager
FROM: Maria Fierner, Public Works Director
By: Jonette Fuentes, Administrative Analyst
SUBJECT: RESOLUTION NO. 2023-104 - Authorizing Approval of Purchases for the Provision of Industrial and Safety Supplies, Parts, Equipment, and Materials with W.W. Grainger, Inc. for a Total Cumulative Two-Year Amount Not to Exceed $300,000 through June 30, 2025

EXECUTIVE SUMMARY
On September 23, 2014, City Council approved Resolution No. 2014-090, authorizing a fiveyear Purchasing Agreement with W.W. Grainger, Inc. (Grainger) for the provision of tools and equipment in a total cumulative five-year amount not to exceed $375,000, through FY 2018/19.

On July 1, 2018, Grainger was awarded a five-year contract agreement (Contract #2018.000207) by OMNIA Partners, with an option to renew for two (2) additional one-year periods through June 30, 2025. OMNIA Partners is a purchasing cooperative that lists competitively solicited purchasing contracts available for local government use and allows cities to piggyback on contracts already competitively bid by other public entities. Contracts awarded through a purchasing cooperative satisfy the competitive bid requirements outlined in the City’s Purchasing Policy. The City of San Ramon utilizes Grainger to purchase industrial and safety supplies, parts, equipment, and materials that are used routinely or are urgently required to address the operational needs of the Public Works Department. Staff recommends entering into a new two-year Purchasing Agreement with W.W. Grainger, Inc. for purchases of industrial and safety supplies, parts, equipment, and materials effective through June 30, 2025.

RECOMMENDED ACTION
Staff recommends approval of this Resolution, authorizing approval of purchases for the provision of industrial and safety supplies, parts, equipment, and materials with W.W. Grainger, Inc., for a total cumulative two-year amount not to exceed $300,000 through June 30, 2025.

BACKGROUND/DISCUSSION
The City of San Ramon purchases industrial and safety supplies, parts, equipment, and materials, which includes, but is not limited to maintenance, repair, and operations products (MRO); capital equipment; inventory tools; safety supplies; safety shoes; and personal protective equipment.

Grainger has diverse, extensive, and sustainable supply of products; supply chain expertise; ease of ordering; return warranty; and competitive, contract pricing. In addition, many of the standard

5.3 Packet Pg. 10
products are available for delivery within one (1) business day.

Grainger provides a comprehensive offering of MRO supplies. Examples include: appliances, material handling repairs, air filters, batteries, electrical, fasteners, hand tools, HVAC, lighting, lamps, ballast, fixtures, material handling repairs, motors, outdoor equipment, paint, equipment supplies, plumbing, pneumatic tools, power tools, safety, security, welding, soldering, public safety, and any other miscellaneous MRO supplies. Grainger also includes sourcing options for items not readily available.

In addition, Grainger offers a complete range of related products and services including, but not limited to, supplier-managed inventory, safety and tools vending machines, storehouse analytics, inventory management, safety training, and any other related services.

On September 23, 2014, City Council approved Resolution No. 2014-090, authorizing a fiveyear purchasing Agreement with Grainger for the provision of tools and equipment in a total cumulative five-year amount not to exceed $375,000.

In FY 2014/15, the Capital Improvement Program allocated $256,000 to CIP 5570 for the Amador Rancho Community Center Furnishings & Equipment Project, a portion of which was purchased through Grainger.

Grainger continues to provide excellent customer service and often works behind the scenes with their network of suppliers to obtain scarce or limited supply items. During the October 2017 Northern California wildfires, Grainger was able to supply the Department with N95 disposable masks for field staff and during the COVID-19 Pandemic, Grainger was able to supply the City with scarce cleaning and disinfecting supplies. Due to the City’s long-standing relationship with Grainger, staff was able to meet the City’s demand for those products.

The Public Works Department provides a safe working environment for its employees and makes provisions for safety equipment and safety shoes for employees in designated positions. The Department’s Safety Shoes Program provides each designated employee with safety boots through a selected vendor that meets the specifications and requirements designated for their duties and work assignments and the cost shall be borne by the City.

On August 1, 2018, Grainger was selected to provide safety shoes to staff. Grainger’s footwear program includes a wide selection of safety shoes for men and women that meets the City’s specifications and requirements; a safety footwear shoe mobile that comes annually to the San Ramon Service Center to outfit staff with safety shoes; and an online safety footwear program that manages and tracks purchases and applies the City’s subsidy.

On July 1, 2018, Grainger was awarded a five-year contract agreement (Contract #2018.000207) by OMNIA Partners, with an option to renew for two (2) additional one-year periods through June 30, 2025. OMNIA Partners is a purchasing cooperative that lists competitively solicited purchasing contracts available for local government use and allows cities to piggyback on contracts already competitively bid by other public entities. Contracts awarded through a purchasing cooperative satisfy the competitive bid requirements outlined in the City’s Purchasing

5.3 Packet Pg. 11
Policy.

With the changes in the City’s subsidy for safety shoes and the continued need to purchase industrial and safety supplies, parts, equipment, and materials, Grainger’s estimated expenditures is anticipated to go over $100,000 annually.

FISCAL ANALYSIS
The estimated annual expenditure is $150,000 for a total two-year cumulative amount not to exceed $300,000. The adopted FY 2023/24 Public Works Department Operating and Capital Budget contains sufficient funding for the purchase of industrial and safety supplies, parts, equipment, and materials as recommended.

STEPS FOLLOWING APPROVAL
If approved, staff will open annual purchase orders with W.W. Grainger, Inc. for FY 2023/24, as well as in all subsequent years of the two-year Purchasing Agreement. The Public Works - Public Services Division will monitor the performance of the vendor throughout the life of the two-year Purchasing Agreement.

5.3 Packet Pg. 12
RESOLUTION NO. 2023-104

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON

AUTHORIZING APPROVAL OF PURCHASES FOR THE PROVISION OF

INDUSTRIAL AND SAFETY SUPPLIES, PARTS, EQUIPMENT, AND MATERIALS WITH W.W. GRAINGER, INC. FOR A TOTAL CUMULATIVE TWO-YEAR AMOUNT NOT TO EXCEED $300,000 THROUGH JUNE 30, 2025
WHEREAS, W.W. Grainger, Inc. has been awarded a competitively bid multi-year contract through the purchasing cooperative OMNIA Partners; and WHEREAS, contracts awarded through a purchasing cooperative satisfy the competitive bid requirements of the City’s Purchasing Policy; and
WHEREAS, the City of San Ramon has a continued need for routine or urgent purchases of industrial and safety supplies, parts, equipment, and materials that are required to address the operational needs of the Public Works Department; and
WHEREAS, W.W. Grainger, Inc. offers a complete range of related products and services including, but not limited to, supplier-managed inventory, safety and tools vending machines, storehouse analytics, inventory management, safety training, and any other related services; and
WHEREAS, W.W. Grainger, Inc. has consistently provided exceptional service and quality products to the City; and
WHEREAS, the adopted FY 2023/24 Public Works Department Operating and Capital Budget contains sufficient funding for the purchase of industrial and safety supplies, parts, equipment, and materials as recommended.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of San Ramon does hereby authorize the approval of purchases for the provision of industrial and safety supplies, parts, equipment, and materials with W.W. Grainger, Inc., for a total cumulative twoyear amount not to exceed $300,000 through June 30, 2025.

PASSED, APPROVED AND ADOPTED at the meeting of October 10, 2023 by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

5.3 Packet Pg. 13
________________________
David E. Hudson, Mayor
ATTEST:
_________________________
Christina Franco, City Clerk

5.3 Packet Pg. 14

CITY COUNCIL STAFF REPORT
DATE: October 10, 2023
TO: City Council/City Manager
FROM: Maria Fierner, Public Works Director
By: Darin Fitzpatrick, Program Manager
SUBJECT: RESOLUTION NO. 2023-105 - Authorizing the Expenditure for the Purchase of Four Utility Trucks, Two Chevrolet Bolt EUVs, Parts, and Related Vehicle Services from Dublin Chevrolet, in an Amount Not to Exceed $376,000; and Declaring Four Utility Trucks and Two Pickup Trucks as Surplus and Authorizing Their Sale at Auction

EXECUTIVE SUMMARY
The adopted FY 2023/24 Public Works Operating Budget includes funds for the purchase of four utility trucks, two EV passenger cars, supplies, parts, and related vehicle services for the Public Works Department. Staff has researched and identified a current contract agreement between Alameda County and Dublin Chevrolet, which was developed using competitive bid pricing on the purchase of new vehicles. Dublin Chevrolet is willing to extend this pricing to the City of San Ramon, and staff is seeking approval to purchase the new vehicles through the utilization of this offer for vehicles as identified in the FY 2023/24 Public Works Operating Budget. Staff is also seeking to declare the four utility trucks and two pickup trucks as surplus and obtain approval to sell them at auction.

RECOMMENDED ACTION
Staff recommends approval of this Resolution, authorizing the expenditure for the purchase of four utility trucks, two Chevrolet Bolt EUVs, parts, and related vehicle services from Dublin Chevrolet, in an amount not to exceed $376,000; and declaring four utility trucks and two pickup trucks as surplus and authorizing their sale at auction.

BACKGROUND/DISCUSSION
During the FY 2023/24 annual budget development process, the Public Works Department identified the need to replace four utility trucks and two pickup trucks based on their age, mileage, and condition in accordance with the City’s Vehicle/Equipment Replacement Policy.

The Public Works Department also has on-going needs for supplies, parts, and servicing and repairs of vehicles of which Dublin Chevrolet has provided excellent service to the City for several years. Through the adoption of the FY 2023/24 Public Works Operating Budget, the Council appropriated funds to purchase six new vehicles, as well as funds for supplies, parts, and service and repairs of vehicles.

5.4 Packet Pg. 15
As part of staff’s efforts to continue to lower the City’s overall carbon footprint, two opportunities were identified to replace traditional internal combustion engine (ICE) pickup trucks with battery-powered electric vehicles (EVs). Public Services Division Program Managers will utilize the two Chevrolet Bolt EUVs for their program oversight activities. The four utility trucks will be used by field staff for maintenance activities for landscape and parks.

All six of these vehicles will be upfitted with emergency/safety lighting as part of safe maintenance practices.

Alameda County has undertaken a competitively bid vehicle procurement process, and on September 28, 2021, the County of Alameda issued Vehicle Purchase Contract #901979 to Dublin Chevrolet. The term of this Agreement is effective from October 1, 2021, through September 30, 2024. The City’s Purchasing Ordinance allows San Ramon to take advantage of competitively bid prices offered to other agencies, and Dublin Chevrolet is willing to extend this discounted pricing to San Ramon. Staff is recommending all six replacement vehicles to be purchased through Dublin Chevrolet.

FISCAL ANALYSIS
The adopted FY 2023/24 Public Works Operating Budget includes sufficient funding to purchase the following vehicles, as well as supplies, parts, servicing, and repairs of Public Works vehicles:

Replacement Vehicle Proposed Replacement Authorized
Budget
Estimated
Purchase Price
Vehicle #8 - utility truck Utility truck $74,000 $63,000 Vehicle #32 - utility truck Utility truck $74,000 $63,000 Vehicle #43 - utility truck Utility truck $74,000 $63,000 Vehicle #83 - utility truck Utility truck $74,000 $63,000 Vehicle #65 - pick-up truck Chevrolet Bolt EUV $40,000 $34,000 Vehicle #B6 - pick-up truck Chevrolet Bolt EUV $40,000 $34,000 Total - $376,000 $320,000
The combined cost of vehicle purchases, supplies, parts, servicing, and repairs of vehicles is not anticipated to exceed the authorized budget of $376,000.

Purchase price does not include additional items such as lift gates, lights, inverters, and safety equipment. When added, the scheduled expenditures for six replacement vehicles will remain under the adopted budget. All proceeds from the sale of existing vehicles will be returned to the Vehicle Replacement Fund. The above price does include all taxes, registration, and other fees.

STEPS FOLLOWING APPROVAL
If approved, staff will open a purchase order with Dublin Chevrolet and arrange for the sale of Vehicles #8, #32, #43, #83, #65, and #B6 at auction.

5.4 Packet Pg. 16
RESOLUTION NO. 2023-105

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON

AUTHORIZING THE EXPENDITURE FOR THE PURCHASE OF FOUR UTILITY

TRUCKS, TWO CHEVROLET BOLT EUVS, PARTS, AND RELATED VEHICLE

SERVICES FROM DUBLIN CHEVROLET, IN AN AMOUNT NOT TO EXCEED $376,000; AND DECLARING FOUR UTILITY TRUCKS AND TWO PICKUP TRUCKS

AS SURPLUS AND AUTHORIZING THEIR SALE AT AUCTION
WHEREAS, the Public Works Department identified the need to replace four utility trucks and two pick-up trucks based upon their age, mileage, and condition in accordance with the City’s Vehicle/Equipment Replacement Policy; and
WHEREAS, staff have identified an opportunity to replace two internal combustion engine pickup trucks with battery-powered electric passenger vehicles; and WHEREAS, Dublin Chevrolet has been awarded a competitively bid contract through the County of Alameda; and
WHEREAS, contracts awarded through such purchasing cooperatives satisfy the competitive bidding requirement, as set forth in the City’s Purchasing Ordinance; and WHEREAS, all proceeds from the sale of existing vehicles will be returned to the Vehicle Replacement Fund; and
WHEREAS, the adopted FY 2023/24 Public Works Operating Budget contains sufficient funding for vehicle purchases, supplies, parts, and related services.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of San Ramon does hereby authorize the expenditure for the purchase of four utility trucks, two battery-powered EVs, parts and related vehicle services from Dublin Chevrolet, in an amount not to exceed $376,000; and declaring four utility trucks and two pick-up trucks as surplus and authorizing their sale at auction.

PASSED, APPROVED AND ADOPTED at the meeting of October 10, 2023 by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

5.4 Packet Pg. 17
________________________
David E. Hudson, Mayor
ATTEST:
________________________
Christina Franco, City Clerk

5.4 Packet Pg. 18

CITY COUNCIL STAFF REPORT
DATE: October 10, 2023
TO: City Council/City Manager
FROM: Martin Lysons, City Attorney
By: Martin Lysons, City Attorney
SUBJECT: RESOLUTION NO. 2023-106 - Authorizing the Mayor to Execute the First Amendment for the Interagency Agreement Between San Ramon Valley Fire Protection District and City of San Ramon Regarding Joint Use Public Safety Complex

RECOMMENDED ACTION
Adopt the Resolution Authorizing the Mayor to Execute the First Amendment for the Interagency Agreement between San Ramon Valley Fire Protection District and City of San Ramon regarding Joint Use Public Safety.

BACKGROUND/DISCUSSION
On May 26, 2020, the Council adopted Resolution No. 2020-042, a Resolution of the City Council of the City of San Ramon Authorizing the Mayor to Execute the Interagency Agreement Between the San Ramon Valley Fire Protection District and City of San Ramon Regarding Joint Use Public Safety Complex (the “Interagency Agreement”). This Resolution and Interagency Agreement formally initiated a partnership with the San Ramon Valley Fire Protection District (“District”) to create a Joint Use Public Safety Complex (“Complex”), containing District Administration, City Police Department, Emergency Operation Center, and a 911 Communications Center in the existing building on the City-owned property at 2401 Crow Canyon Road (the “Property”).

The parties executed the Interagency Agreement on July 1, 2020, which set forth the responsibilities of each party in creating the Complex. As outlined in the Interagency Agreement, the District agreed to fund fully the necessary renovations at the Property in exchange for 50% ownership equity in the Property, termination of the City’s existing Tax Sharing Agreement with the District, the City’s agreement to absorb City development fees, and the City’s agreement to bear some of the ongoing operating/maintenance costs over the next ten years as outlined in the attached Draft Interagency Agreement.

The building renovations are nearly complete, and the District intends to occupy its portion of the Complex in the coming weeks. To facilitate the final steps to be taken under the Interagency

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Agreement, including the execution and recordation of a Grant Deed to transfer a half-interest in the Property to the District, the parties have agreed to modify the Interagency Agreement to clarify some of its terms and conditions, and to acknowledge those conditions precedent that have already been satisfied. The proposed modifications are set forth in the attached First Amendment for the Interagency Agreement between San Ramon Valley Fire Protection District and City of San Ramon regarding Joint Use Public Safety Complex (“First Amendment”) and are summarized as follows:
• Section II is amended to provide for a specific Effective Date of the Agreement (June 24, 2020).
• Section V.B.2 is amended to clarify that the District’s obligation to contribute payments under the Creekside Drive Maintenance Agreement begins upon the District's occupation of the Public Safety Complex.
• Section V.C.2 is modified to acknowledge that the City has fulfilled its obligation to terminate the Tax Sharing Agreement between the District and the City. • Section IX is modified in recognition of the fact that the District has performed its feasibility and due diligence investigations, and that it continues to rely on certain representations, warranties, and covenants in entering this Agreement. • Section XIII.C is modified to commence the City’s obligation to provide routine and minor maintenance throughout the Public Safety Complex for ten (10) years on the date of the District’s occupancy of the Complex, instead of on the Effective Date of the Interagency Agreement.
• Section XXIII was amended to update the persons to be noticed under this Agreement.

FISCAL ANALYSIS
There is minimal fiscal impact associated with the proposed amendments to Section V.B.2 and XIII.C; however, these modifications are consistent with the original intent of the provisions. The District’s obligation to contribute to the Creekside Drive Maintenance Agreement under Section V.B.2 was intended to offset the District’s impacts on Creekside Drive, which will be negligible until the District occupies the Complex. Similarly, the City’s obligation to provide routine maintenance for the Complex under Section XIII.C is part of the consideration for the District’s funding of the improvements and was intended to last ten full years. This obligation only benefits the District once they have occupied the Complex, so it is appropriate to begin the 10-year period at that time.

There is no fiscal impact associated with the other modifications.

STEPS FOLLOWING APPROVAL
Upon approval of the Resolution by the Council, the City Attorney’s office will execute the First Amendment and, as authorized under Resolution No. 2020-042, execute and record the Grant Deed.

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ATTACHMENT
Exhibit 1: Interagency Agreement Amendment 1

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RESOLUTION NO. 2023-106

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON

AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT FOR THE

INTERAGENCY AGREEMENT BETWEEN SAN RAMON VALLEY FIRE

PROTECTION DISTRICT AND CITY OF SAN RAMON REGARDING JOINT USE

PUBLIC SAFETY COMPLEX
WHEREAS, the San Ramon Valley Fire District (“District”) has the authority under California law to provide vital fire suppression, emergency medical treatment and transport services, rescue and response to hazardous material release services, and other emergency services to District within the boundaries of City; and WHEREAS, City has the authority under California law to provide vital police services to the citizens of San Ramon and owns the real property and facility located at 2401 Crow Canyon Road, San Ramon, CA, Assessor’s Parcel Number 209-240-019 (the “Property”); and WHEREAS, on May 26, 2020, the City Council adopted Resolution No. 2020-042, authorizing the Mayor to execute the Interagency Agreement between the District and City (“Interagency Agreement”), regarding the creation of the Joint Use Public Safety Complex (“Complex”); and
WHEREAS, the parties executed the Interagency Agreement on July 1, 2020; and WHEREAS, the Complex includes District Administration, Police Department, Emergency Operation Center, and 911 Communications center at the Property; and WHEREAS, under the Interagency Agreement, the District agreed to fund fully the necessary renovations at the Property in exchange for 50% ownership equity in the Property and other consideration; and
WHEREAS, as the renovations are nearly complete and the District intends to occupy its portion of the Complex in the coming weeks, the parties have agreed to some modifications to the Interagency Agreement to facilitate completion of the final steps to be taken by the Parties before occupation of the Complex by the District; and
WHEREAS, the proposed modifications are set forth in the attached First Amendment for the Interagency Agreement between San Ramon Valley Fire Protection District and City of San Ramon regarding Joint Use Public Safety Complex (“First Amendment”).

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of San Ramon does hereby authorize and direct the Mayor to execute the First Amendment to the Interagency Agreement between the San Ramon Valley Fire Protection District and City of San Ramon regarding Joint Use Public Safety Complex.

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PASSED, APPROVED AND ADOPTED at the meeting of October 10, 2023, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
David E. Hudson, Mayor
ATTEST:
________________________
Christina Franco, City Clerk
Exhibit 1: Interagency Agreement Amendment 1

5.5 Packet Pg. 23
1 FIRST AMENDMENT FOR

THE INTERAGENCY AGREEMENT BETWEEN SAN RAMON VALLEY FIRE

PROTECTION DISTRICT AND CITY OF SAN RAMON REGARDING

JOINT USE PUBLIC SAFETY COMPLEX
(Interagency Agreement First Amendment)

THIS FIRST AMENDMENT FOR THE INTERAGENCY AREEMENT BETWEEN SAN RAMON

VALLEY FIRE PROTECTION DISTRICT AND CITY OF SAN RAMON REGARDING JOINT USE PUBLIC SAFETY COMPLEX (“First Amendment”) is made and entered into between the San Ramon Valley Fire Protection District (“District”), a California Special District, and the City of San Ramon, a municipal corporation (“City”), collectively the “Parties” and each a “Party.”

RECITALS
WHEREAS, the Parties entered into the Interagency Agreement for the Joint Use Public Safety Complex (“Public Safety Complex”) (“Agreement”) which shall be incorporated by reference, and is attached hereto as Exhibit 1; and
WHEREAS, the Parties may amend or modify the Agreement by written agreement executed by the Parties under Section XVI of the Agreement; and
WHEREAS, the Parties wish to modify the Agreement as set forth in this First Amendment which shall be attached to and incorporated in the Agreement.

NOW THEREFORE, the Parties agree to modify the Agreement as follows:

1. Section II (Effective Date). The Parties agree Section II of the Agreement shall be modified and replaced with the following:

II. Effective Date. The Parties agree the Effective Date of the Agreement shall be June 24, 2020.

Upon the Effective Date, both City and District accept the terms of this Agreement and agree to be bound by them.

2. Section V.B.2 (District Funding Commitments). The Parties agree Section V.B.2. of the Agreement shall be modified and replaced with the following:

District hereby agrees to contribute 50% of City’s obligation under the Creekside Drive Maintenance Agreement, dated April 19, 2007, instrument no.: 2007-0116176-00, attached to the Agreement as Exhibit B (“Creekside Agreement”), commencing upon District’s occupation of the Fire Administration area of the Public Safety Complex. District shall not be responsible for paying any maintenance obligations under the Creekside Agreement that have accrued, or remain outstanding, prior to District’s occupation of the Public Safety Complex.

3. Section V.C.2 (District Funding Commitments). The Parties agree Section V.C.2. of the Agreement shall be modified and replaced with the following:

City acknowledges and agrees that it has terminated that certain Tax Sharing Agreement between the parties dated September 28, 2007, and as further amended on September 25, 2013, as of the Effective Date of the Agreement, June 24, 2020.

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Attachment: Exhibit 1: Interagency Agreement Amendment 1 (2023-106 : First Amendment to Interagency Agreement with SRVFPD)

SRVFPD-City of San Ramon
Interagency Agreement First Amendment

4. Section IX (City’s Transfer of Ownership of Property and Facility to District). The Parties agree Section IX of the Agreement shall be modified and replaced with the following:

IX. City’s Transfer of Ownership of Property and Facility to District.

A. The Parties agree that the District has completed the District Funding Commitments as set forth in Section V.B. of the Agreement, including, without limitation, the District has funded all Facility Renovations and the construction of the Emergency Operations Center, and the Police Department Portion of the Facility has been completed and the Police Department now occupies this area. The Parties further agree that at this time the District is not responsible for any outstanding contribution obligations under the Creekside Agreement, as set forth in Section V.B.2. of the Agreement. However, the District agrees to continue its obligation under Section V.B.2 upon District’s occupation of the Fire Administration area of the Public Safety Complex. City agrees to timely notify District of any District obligations under the Creekside Agreement.

B. In exchange for District’s Funding Commitments herein, among other consideration, City shall transfer fifty percent (50%) ownership interest in Property to District (“Ownership Interest”) through a Grant Deed to be executed and recorded by City in the Official Records of Contra Costa County, California, upon the execution of this First Amendment by the Parties (“Grant Deed”). City shall thereafter provide the District with a certified copy of the recorded Grant Deed within five (5) business days of its recording.

C. City has vacated the portion of the Facility to be used by the District.

D. City makes the following representations, warranties and covenants, each of which (1) is material and being relied upon by the District; and (2) is true, complete and not misleading in all material respects as of the Effective Date of the Agreement, the effective date of this First Amendment, the recording date of the Grant Deed, and the date of transfer of title to the Property:

1. City has the requisite power and authority to execute the transfer of Ownership Interest to the District as set forth in the Agreement and this First Amendment;

2. City is transferring fifty percent (50%) good and marketable title to the District free and clear of liens, defects or other encumbrances;

3. City’s transfer of Ownership to District shall not result in any conflict, violation, breach or default of any City obligation or by which the Property is subject; and

4. The Property is in compliance with all federal, state and local laws, regulations and ordinances applicable to the development, ownership, operation, maintenance and management of the Property, including, without limitation, all laws, regulations and ordinances relating to zoning, planning, land-use and building restrictions, water, and environmental laws.

City’s representation and warranties contained in this First Amendment shall survive termination of the Agreement.

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Attachment: Exhibit 1: Interagency Agreement Amendment 1 (2023-106 : First Amendment to Interagency Agreement with SRVFPD)

SRVFPD-City of San Ramon
Interagency Agreement First Amendment
E. To the furthest extent permitted by law, City agrees to indemnify and hold District, its directors, officers, employees and agents, harmless from any and all liability, loss, expense (including reasonable attorney’s fees) or claims arising out of the Property’s title or City’s representations and warranties made herein and in the Agreement. This provision shall survive the termination or expiration of the Agreement.

5. Section XIII.C (Operation of Public Safety Complex Upon Completion: Maintenance). The Parties agree Section XIII.C. of the Agreement shall be modified and replaced with the following:

The Parties agree that the City’s obligation to continue providing routine and minor maintenance throughout the Public Safety Complex and on adjacent grounds that are used in connection with the Public Safety Complex for no more than ten (10) years shall be modified to commence upon District’s occupation of the Fire Administration area of the Public Safety Complex, not from the Effective Date of the Agreement. The Parties further agree that the District is not responsible for any outstanding maintenance contribution obligations for the Public Safety Complex and on adjacent grounds that are used in connection with the Public Safety Complex that have accrued as of the effective date of this First Amendment.

6. Section XXIII (Notices). The Parties agree Section XXIII of the Agreement shall be modified and replaced with the following:

Notices. All notices, demands and other communications required or given pursuant to this Agreement shall be in writing, duly addressed as indicated below, and given by personal delivery, registered or certified mail (postage prepaid and return receipt requested), Federal Express or other reliable private express delivery, or by facsimile transmission (with original to follow via first-class U.S. Mail), or by email. Such notices, demands or other communications shall be deemed to have been given or served only upon actual receipt. Any party specified below may, for purposes of this Agreement, change its name, address, facsimile number, or person to whom attention should be directed by giving notice in the manner specified in this Section. Notices, demands and communications to the City shall be duly addressed to:

Steven Spedowfski, City Manager
City of San Ramon
7000 Bollinger Canyon Road
San Ramon, CA 94583
Email: [email protected]
With a copy to:

Martin Lysons, City Attorney
City of San Ramon
7000 Bollinger Canyon Road
San Ramon, CA 94583
Email: [email protected]

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Attachment: Exhibit 1: Interagency Agreement Amendment 1 (2023-106 : First Amendment to Interagency Agreement with SRVFPD)

SRVFPD-City of San Ramon
Interagency Agreement First Amendment
Notices, demands and communications to the District shall be duly addressed to:

Paige Meyer, Fire Chief
SRVFPD
1500 Bollinger Canyon Road
San Ramon, CA 94583
Email: [email protected]
With copies to:

Stephanie Brendlen, District Counsel/District Clerk
SRVFPD
1500 Bollinger Canyon Road
San Ramon, CA 94583
Email: [email protected]
Davina Hatfield, CFO
SRVFPD
1500 Bollinger Canyon Road
San Ramon, CA 94583
Email: [email protected]

7. All Other Terms to Remain the Same. The Parties agree that all terms of the Agreement that are not expressly amended, modified, or replaced by this First Amendment shall remain unaffected by this First Amendment and shall continue in full force and effect.

IN WITNESS WHEREOF, the Parties have executed this First Amendment on the dates indicated below, the latest of which shall be deemed the effective date of this First Amendment.

City of San Ramon, A Municipal Corporation
(“City”)
________________________________________
David E. Hudson, Mayor Date
________________________________________
Steven Spedowfski, City Manager Date
APPROVED AS TO FORM:
_______________________________________
Martin Lysons, City Attorney Date
ATTEST:
_______________________________________
Christina Franco, City Clerk Date
San Ramon Valley Fire Protection District
(“District”)
_______________________________________
Paige Meyer, Fire Chief Date
APPROVED AS TO FORM:
_______________________________________
Stephanie Brendlen Date
District Counsel/District Clerk

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Attachment: Exhibit 1: Interagency Agreement Amendment 1 (2023-106 : First Amendment to Interagency Agreement with SRVFPD)

CITY COUNCIL STAFF REPORT
DATE: October 10, 2023
TO: City Council/City Manager
FROM: Debbie Chamberlain, Community Development Director By: Analisa Garcia, Assistant Planner
SUBJECT: Introduction of Ordinance (Next in Line) Repealing and Replacing Chapter XII (Inclusionary Housing (Residential Development Projects)) of Title C (Construction, Development and Land Use), Division C4 (Land Development) of the San Ramon Municipal Code

EXECUTIVE SUMMARY
California state laws form the statutory basis for local governmental zoning powers and the ability to require affordable housing for the purpose of furthering the availability of the range of housing choices for families of all income levels in all areas of the City. The City is currently in the process of adopting the General Plan 2040 Update and associated Rezone. The City’s General Plan Housing Element for the period of 2023-2031 was adopted on January 30, 2023.

Subsequently, the Housing Element was certified by the State Department of Housing and Community Development (HCD) recognizing that it meets State Housing Law. The Housing Element directs the City, by way of Housing Program 8, to review the existing Inclusionary Housing and Affordable Housing Commercial Linkage Fee Ordinance to add a must-build requirement for single-family development projects; offer flexible compliance with inclusionary requirements if deeper affordability options are being included; and to review and revisit the fee structure for Inclusionary In-Lieu Fee and Commercial Linkage Fee to facilitate on-site construction of affordable units. The proposed amendment to the Inclusionary Housing Ordinance is in response to the commitment set forth by Housing Program 8 of the Housing Element, and to ensure the policies are in place and applicable to future residential development applications.

RECOMMENDED ACTION
Introduce the Ordinance, waive the reading, open the Public Hearing, receive public testimony, close the Public Hearing and set the October 24, 2023, City Council meeting for Ordinance adoption.

INTRODUCTION

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Project Location
Citywide
Applicant: Property Owners:

City of San Ramon Citywide
General Plan Designation: Zoning District:

Varies Varies
Environmental Review/California Environmental Quality Act (CEQA) Status:

The proposed Ordinance has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.). Passage of this Ordinance is not considered a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378, because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. In addition, the proposed Ordinance is exempt from CEQA as it can be seen with certainty that there is no possibility of causing a significant effect on the environment (CEQA Guidelines Section 15061(b)(3)).

Public Outreach/Notification:

Pursuant to Government Code Section 36933, the City Clerk shall post the Ordinance in at least three public places in the City. In addition, the City has created a webpage and notified interested parties of the proposed update.

BACKGROUND
The City Council adopted the City of San Ramon Housing Element of the General Plan for the period of 2023-2031 on January 30, 2023. Subsequently, the Housing Element was certified by the State Department of Housing and Community Development (HCD) recognizing that it met State Housing Law requirements. The Housing Element commits the City, by way of Housing Program 8, to review the existing Inclusionary Housing and Affordable Housing Commercial Linkage Fee Ordinance to add a must-build requirement for single-family development projects in order to facilitate on-site construction of units. In response, staff is proposing to revise the Ordinance to include 1) a must-build requirement for for-sale single-family residential development projects that are 10 dwelling units or more, 2) require single-family residential development projects to provide a mix of very low-, low-, and moderate-income units, and 3) increase the affordability term from 30-years to 55-years. Staff will return at a later date to revisit the fee structure for Inclusionary In-Lieu and Commercial Linkage Fee.

On August 31, 2023, staff presented the proposed changes to the Housing Advisory Committee (HAC) for their review and recommendation. The discussion was primarily focused on the increase of the affordability term from 30-years to 55-years, which would reset at each change in ownership. Staff explained that the increase in the term and the requirement for a new 55-year term to be recorded with each transfer of title was intended to maintain affordability of the unit

9.1 Packet Pg. 29
in perpetuity. Ultimately, HAC recommended proceeding with the adoption of the draft Inclusionary Housing Ordinance Update.

On September 19, 2023, staff presented the proposed changes to the Planning Commission for their review and recommendation. Commissioners discussed the potential financial impact to the Affordable Housing Fund. Staff explained that fees would continue to be collected from multiple sources, including the in-lieu fee for projects of less than 10 units, commercial developments that are subject to the commercial linkage fee, and potentially from projects that pay an in-lieu fee as an alternative means of compliance. Staff further explained that the City benefits from on-site construction of units, as the in-lieu fee is nominal in comparison to the cost of constructing units on-site. Commissioners also discussed the potential for property owners to amend their proposed project type as a result of the changes but were overall supportive of the updates and recommended City Council adoption.

INCLUSIONARY POLICY DISCUSSION
Building on the existing Inclusionary Housing Ordinance and in response to the directive set forth by the adopted Housing Element, staff has prepared the attached draft Inclusionary Housing Ordinance Update for review and is requesting a recommendation to be forwarded to the City Council. The draft Ordinance update revises the inclusionary requirements for for-sale singlefamily residential development projects that are 10 dwelling units or more to match the existing requirements for multi-family for-sale residential projects of 10 or more dwelling units. In addition, to maintain the long-term preservation of affordable units, the affordability term is revised from 30-years to 55-years and will reset each time the property is sold. Below are topics staff has highlighted for the Council’s discussion:

Percentage of Affordable Units and In-lieu Fee Option
Currently, all for-sale single-family detached residential development projects of ten (10) dwelling units or more shall develop and reserve 10 percent or more of all for-sale units as affordable units to be sold to moderate-income households. Alternatively, the single-family detached residential project can opt to pay an affordable housing fee equivalent to 10 percent of the development’s total new residential livable square footage multiplied by the City’s cost per square foot rate as set forth in the City’s Fee Resolution. The 10 percent requirement was a result of previous work done by the Housing Advisory Committee (HAC), the Planning Commission, the City Council, and staff in reviewing what neighboring jurisdictions have implemented and projecting what would result in the creation of additional affordable single-family units.

However, the 10 percent requirement has resulted in most developers opting for payment of inlieu fees as opposed to construction of units, as the fee is substantially less than the cost of construction.

The Ordinance requires that all for-sale multi-family residential development projects of ten (10) dwelling units or more to develop and reserve 15 percent or more of all for-sale units as affordable units to be sold to very low-, low-, and moderate-income households. The allocation of units to income levels is provided below:

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For-Sale Multi-Family Units
Very low-income households 20%
Low-income households 30%
Moderate-income households 50%
In response to Housing Program 8 of the adopted Housing Element, staff is proposing to remove the in-lieu fee option for for-sale single-family detached residential projects of ten dwelling units or more. The in-lieu fee may still be considered as part of alternative compliance (refer to Section C4-179.E.), which is considered on a case-by-case basis. In addition, the must build percentage would be revised, from a minimum of 10 percent to 15 percent of all for-sale units.

The affordability allocation that is required for for-sale multi-family residential development projects would now apply to the single-family for-sale projects. Affordable units would be distributed to very low-, low- and moderate-income households where currently single-family residential developments are only required to provide units for moderate-income households.

The proposed changes would result in consistent application of the requirements for for-sale single-family residential projects of 10 dwelling units and for-sale multi-family residential projects of 10 dwelling units or more.

Affordability Term
To address the need to maintain long term affordability of units, the term of affordability for both rental and ownership affordable units are recommended to be revised from the current 30-year term to a 55-year term. The affordability term will be required as part of a project’s Affordable Housing Agreement and recorded on the affordable unit’s title, and each change of ownership will require a new 55-year term to be recorded.

Fractional Units
Currently, Section C4-177.A.5 of the Ordinance requires that “in computing the total number of affordable units required in a residential development, fractions of one-half or greater shall be rounded up to the next highest whole number, and fractions of less than one-half shall be rounded down to the next lowest whole number.” When applied, depending on the number of units in the project, fractions of one-half or greater may be equally applicable across multiple affordability levels. To promote the construction of units in the lowest affordability level, the Ordinance has been revised to require the rounding up to a whole number in the lowest affordability level to achieve the correct total number of affordable units offered by the residential project.

For example, a single-family detached project of 100 units would have the following inclusionary requirement:

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Inclusionary Housing Requirement
Housing Type and Size Inclusionary
Obligation
Affordability Level of On-site units
100 Single-family detached
units
15 units total (15%) 20% Very Low: 3 units 30% Low: 5
units, rounded up from 4.5. 50%
Moderate: 7 units, rounded down from

7.5. Total: 15 units
The revision will result in the rounding up of the lowest affordability level to achieve construction of the unit in the lowest affordability level, without increasing the total number of affordable units required.

In-Lieu Fees
Staff also recognizes the need to revisit the fee structure for both Inclusionary Housing In-Lieu Fees (Alternative Compliance) and Commercial Linkage Fees to facilitate an alternative means of compliance to on-site construction of affordable units. Staff is reviewing the existing in-lieu fee schedule and will present options at a future date to the City Council for their consideration.

NEXT STEPS

1. City Council to consider adoption of the Ordinance on the Consent Calendar at their October 24, 2023, meeting.

2. Staff to finalize redline edits and format for incorporation into the City’s Municipal Code.

ATTACHMENT
A: Ordinance (Next In Line)
B: Public Comment Received September 21, 2023

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DRAFT

ORDINANCE (NEXT IN LINE)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAMON

REPEALING AND REPLACING CHAPTER XII (INCLUSIONARY HOUSING (RESIDENTIAL DEVELOPMENT PROJECTS)) OF TITLE C (CONSTRUCTION, DEVELOPMENT AND LAND USE), DIVISION C4 (LAND DEVELOPMENT) OF

THE SAN RAMON MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF SAN RAMON DOES ORDAIN as follows:

SECTION 1. TITLE C (Construction, Development and Land Use), DIVISION C4 (Land Development), CHAPTER XII (Inclusionary Housing (Residential Development Projects)) of the San Ramon Municipal Code is hereby repealed and replaced to read as follows:

CHAPTER XII
Inclusionary Housing (Residential Development Projects) Section C4-175. Basis and Purpose.

In enacting the Ordinance codified in this Chapter, the City Council finds as follows:

A. The Legislature of the State of California has found that the availability of housing is of vital statewide importance, and that providing decent housing for all Californians requires the cooperative participation of government and the private sector. The Legislature has further found that local governments have a responsibility to use the powers vested in them to make adequate provisions for the housing needs of all economic segments of the community. This Chapter is intended to utilize the police powers of the City of San Ramon, a Charter City, to enhance the public welfare by making adequate provision for the housing needs of all economic segments of the community through exercise of its land use authority in approving residential development projects. This Chapter will ensure that market-rate housing mitigates its impacts on the need for affordable housing by establishing policies which require the development of housing affordable to households of very low-, low-, and moderate-incomes, assist in meeting the City's share of the region's housing need, and help implement the goals, policies, and objectives of the General Plan and the Housing Element.

B. The Housing Element of the City's General Plan has a goal of encouraging the development of affordable housing to help meet the City's assigned share of the regional housing need and has adopted a policy of encouraging the development of a diverse housing stock that provides a range of affordability levels. To implement this goal, the City has committed to increase the production of affordable units at all income levels; in part through production of the on site construction and payment of affordable housing fees to the City to be used for development of very low-, low-, and moderate-income households. This Chapter provides alternatives that allow for creativity in achieving the overall goal of producing and retaining affordable units.

C. Land prices are a key factor preventing development of new affordable housing. New housing construction in the City which does not include affordable units aggravates the existing shortage of affordable housing by absorbing the supply of available residential land. This reduces the supply of land for affordable housing and increases the price of remaining

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) residential land. Providing the affordable units and affordable housing fees required by this Chapter will help to ensure that part of the City's remaining developable land is used to provide affordable housing. At the same time, new market-rate housing contributes to the demand for goods and services in the City, increasing local service employment at wage levels which often do not permit employees to afford housing in the City. The "Development Fee Study", prepared in 2017 (the "Nexus Study"), prepared by Keyser-Marston Associates (KMA), quantifies the impacts of new market-rate units on the need for affordable housing in the City and the justified affordable housing fees to mitigate those impacts. The affordable housing fees authorized by this Chapter are required to be reasonably related to the need for affordable housing associated with market-rate housing as demonstrated by the most current Nexus Study.

D. An economically-balanced community is only possible if part of the new housing built in the City is affordable to households with limited incomes. Requiring builders of new housing to include some affordable housing is fair, not only because new development without affordable units contributes to the shortage of affordable housing but also because Zoning and other Ordinances concerning new housing production in the City should be consistent with the community's goal of fostering an adequate supply of housing for households at all affordability levels and should address the need for affordable housing related to market-rate housing production. This is particularly true of very low-income housing. The City of San Ramon Regional Housing Need Allocation (RHNA) for the period 2023-2031requires facilitating the development of 1,497 new very low-income units and 862 new low-income units.

E. The City is experiencing the loss of affordable housing due to the expiration of covenants restricting rents in some affordable housing developments. Affordable housing fees may provide a source of financing to enable the City to preserve existing affordable housing that would otherwise be lost.

F. The limited production of rental housing and the displacement of rental housing units through conversions to residential condominiums reduce the City's rental housing supply, which causes increased rental housing costs and decreased housing affordability. The provision of affordable units within residential condominium conversion projects provides affordable housing ownership opportunities that help offset the loss of affordable rental units.

Section C4-176. Definitions.

As used in this Chapter, each of the following terms shall be defined as follows:
"Accessory dwelling unit" shall have the same meaning as that term defined in Title D of the San Ramon Municipal Code.
“Affordable housing fee” is a fee in-lieu of construction of affordable units. Collection and use of this fee is defined in Section C4-180 (Affordable Housing Fund) of this Code. "Affordable ownership cost" means a sales price resulting in projected average monthly housing payments, during the first calendar year of a household's occupancy, including but not limited to interest, principal, mortgage insurance, property taxes, homeowners' insurance, homeowners'

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) association dues, if any, and a reasonable allowance for utilities, property maintenance, and repairs, not exceeding the following:

1. Very low-income households: 50 percent of the annual area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent and divided by 12.

2. Low-income households: 80 percent of the annual area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent and divided by 12.

3. Moderate-income households: 120 percent of the annual area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent and divided by

12. "Affordable rent" means monthly rental housing expenses, including all fees for housing services and a reasonable allowance for utilities, not exceeding the following:

1. Extremely low-income households: 30 percent of the annual area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent and divided by 12.

2. Very low-income households: 50 percent of the annual area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent and divided by 12.

3. Low-income households: 80 percent of the annual area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent and divided by 12.

4. Moderate-income households: 120 percent of the annual area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent and divided by 12, but in no event greater than market rent.
"Affordable units" means living units which are required under this Chapter to be rented at affordable rent or available at an affordable ownership cost to eligible households. "Applicant" means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities that seeks City real property residential development permits or approvals.
"Area median income" means median income for Contra Costa County, adjusted for household size, as published pursuant to California Code of Regulations, Title 25, Section 6932 and California Health and Safety Code section 50093 as may be amended. "Assumed household size" means one person in a studio apartment, two persons in a one bedroom unit, three persons in a two-bedroom unit, and one additional person for each additional bedroom thereafter, unless a federal standard applicable to the development requires the use of a different assumed household size, in which case the federal standard shall apply.

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) "Construction cost index" means the Engineering News Record McGraw-Hill Construction Weekly Building Cost Index for San Francisco. If that index ceases to exist, the Community Development Director shall substitute another construction cost index which in his or her judgment is as nearly equivalent to the original index as possible. "Eligible buyer" means an eligible household qualified to purchase an affordable unit. "Eligible household" means a household whose household income (as defined) does not exceed the maximum specified for a very low-, low-, or moderate-income household as applicable for a given affordable unit.
"First approval" means the first of the following approvals to occur with respect to a residential project: development plan approval, subdivision approval, land use permit approval, design review approval, other discretionary land use approval, or building permit. "For-sale project" means a residential project, or portion thereof, that includes the creation of two or more residential living units that may be sold individually, including a condominium, stock cooperative, community apartment, or attached or detached single-family home. A for-sale project also includes a residential condominium conversion project and the creation of residential living units that may be sold individually, but are initially rented rather than sold. "Household income" means the combined adjusted gross income for all adult persons living in a living unit as calculated for the purpose of the Section 8 Program under the United States Housing Act of 1937, as amended, or its successor provision.

1. "Extremely low-income household" means a household whose income does not exceed the extremely low-income limits pursuant to the published standard.

2. "Very low-income household" means a household whose income does not exceed the very low-income limits pursuant to the published standard.

3. "Low income-household" means a household whose income does not exceed the low income limits pursuant to the published standard.

4. "Moderate-income household" means a household whose income does not exceed the moderate-income limits pursuant to the published standard. "Market-rate units" means new living units in residential projects which are not affordable units (as defined).
"Rental project" means a residential project, or portion thereof, that creates living units that cannot be sold individually, except that construction of any accessory dwelling unit shall not be considered a rental project.
"Residential project" means any project containing two or more net new living units or

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) residential lots, or living units and residential lots which total two or more net new units and/or lots in combination, built pursuant to or contained in an application for a development plan, subdivision map, land use permit, other discretionary City land use approval, or building permit.

An accessory dwelling unit built on an existing residential lot is not considered a residential project and is not subject to this Chapter. A residential condominium conversion project is considered a residential project and is subject to this Chapter. The provisions of this section shall be interpreted broadly to effect the purposes of this Chapter and to prevent evasion of its terms.

Section C4-177. lnclusionary Housing Requirements.

The Inclusionary Housing Requirements of this Chapter shall apply to all new residential projects consisting of two or more residential units. Calculations of the number of affordable units required by this Section shall be based on the number of dwelling units in the residential development, excluding any density bonus units as defined in state law or provisions of this code. For mixed-use development projects, the Inclusionary Housing Requirement is determined by: (1) calculating the base Inclusionary Housing Requirement for the commercial use, and (2) calculating the base Inclusionary Housing Requirement for the residential use.

A. For-Sale Projects. The following basic requirements apply to all new for-sale projects unless an alternative is provided by this Chapter:

1. Fewer than Ten Dwelling Units. All for-sale single-family and multi-family residential development projects between two (2) and nine (9) dwelling units may pay an affordable housing fee in-lieu of construction of affordable units. The fee shall be equivalent to 25 percent of the development's total new residential livable square footage (excluding garages) multiplied by the City's cost per square foot rate as set forth in the City's Fee Resolution. The formula below shall be used in calculating the amount of the affordable housing in-lieu fee:
(25 percent of the total livable residential square footage, excluding garage) multiplied by (per square foot fee) equals (total affordable housing in-lieu fee). The City shall deposit these fees into an Affordable Housing Fund as set forth in Section C4-180 to mitigate the impact of the project on the need for affordable housing units.

2. Ten Dwelling Units or More-Single-Family Residential Developments. All for-sale single-family residential development projects of ten (10) dwelling units or more shall develop and reserve a minimum of 15 percent of all for-sale units as affordable units to be sold to very low-, low-, and moderate-income households. Construction of accessory dwelling units would not satisfy the Inclusionary Requirement of the project.
a. Allocation of Units to Income Levels. Of the minimum 15 percent affordable units provided pursuant to this subsection, units shall be allocated to households with very low-, low-, and moderate-income levels as follows. The applicant is not precluded from increasing the level of affordability in the project:

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) For-Sale Single-Family
Units
Very low-income households 20%
Low-income households 30%
Moderate-income households 50%

3. Ten Dwelling Units or More-Multi-Family Residential Developments. All for-sale multi-family residential development projects of ten (10) dwelling units or more shall develop and reserve a minimum of 15 percent of all for-sale units as affordable units to be sold to very low-, low-, and moderate-income households. a. Allocation of Units to Income Levels. Of the 15 percent or higher percentage, if applicable, affordable units provided pursuant to this subsection, units shall be allocated to households with very low-, low-, and moderate-income levels as follows.

The applicant is not precluded from increasing the level of affordability in the project:

For-Sale Multi-Family Units
Very low-income households 20%
Low-income households 30%
Moderate-income households 50%

4. Exceptions. For the purpose of calculating the number of affordable units required by this section, any accessory dwelling units and any additional units authorized as a density bonus pursuant to State law or provisions of this Code shall not be counted as part of the for-sale project.

Fractional Units. In computing the total number of affordable units required in a residential development, fractions of one-half (1/2) or greater shall be rounded up to the next highest whole number, and fractions of less than one-half (1/2) shall be rounded down to the next lowest whole number. In the event that fractional units of one-half (1/2) or greater are equally applicable across multiple affordability levels, the rounding up to a whole number will apply to the lowest affordability level(s) to achieve the correct total number of affordable units offered by the residential development project.

5. Where the calculation of the allocation results in fewer units than would otherwise be required pursuant to subsections (A)(2) and (A)(3) of this section, one additional unit should be allocated to the income level with a decimal fraction closest to 0.50.

6. Design and Distribution of Affordable Units. On-site affordable units shall be comparable to the market rate units in terms of unit type, number of bedrooms per unit, quality of exterior appearance and overall quality of construction. Affordable unit size should be generally representative of the unit sizes within the market-rate portion of residential projects, as acceptable to the Community Development Director. Interior features and finishes in affordable units shall be durable, of good

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) quality and consistent with contemporary standards for new housing. The affordable units shall be dispersed throughout the residential project in a manner acceptable to the Community Development Director unless an alternative is approved by the review authority.

7. Affordable units provided pursuant to one of the alternatives set forth in this Chapter shall be approved and completed no later than time prescribed in this Chapter.

B. Rental Projects. The following basic requirements apply to all new rental projects unless an alternative is provided by this Chapter:

1. Fewer than Ten Dwelling Units. All rental residential development projects between two (2) and nine (9) dwelling units may pay an affordable housing fee in-lieu of construction of affordable units. The fee shall be equivalent to 25 percent of the development's total new residential livable square footage (excluding garages) multiplied by the City's cost per square foot rate as set forth in the City's Fee Resolution. The formula below shall be used in calculating the amount of the affordable housing in-lieu fee:
(25 percent of the total livable residential square footage, excluding garage) multiplied by (per square foot fee) equals (total affordable housing in-lieu fee). The City shall deposit these fees into an Affordable Housing Fund as set forth in Section C4-180 to mitigate the impact of the project on the need for affordable housing units.

2. Ten Dwelling Units or More. All rental residential development projects of ten (10) dwelling units or more shall develop and reserve a minimum of 15 percent of all rental units as affordable units to be rented to very low- and low-income households. a. Allocation of Units to Income Levels. Of the 15 percent or higher percentage, if applicable, affordable units provided pursuant to this subsection, units shall be allocated to households with very low and low-income levels as follows. The applicant is not precluded from increasing the level of affordability in the project.

Rental Units
Very low-income households 50%
Low-income households 50%

3. Exceptions. For the purpose of calculating the number of affordable units required by this section, any accessory dwelling units and any additional units authorized as a density bonus pursuant to State law or provisions of this Code shall not be counted as part of the rental project.

4. Fractional Units. In computing the total number of affordable units required in a residential development, fractions of one-half (1/2) or greater shall be rounded up to the next highest whole number, and fractions of less than one-half (1/2) shall be

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) rounded down to the next lowest whole number.

5. Where the calculation of the allocation results in fewer units than would otherwise be required pursuant to subsection (B)(2) of this section, one additional unit should be allocated to the income level with a decimal fraction closest to 0.50.

6. Design and Distribution of Affordable Units. On-site affordable units shall be comparable to the market rate units in terms of unit type, number of bedrooms per unit, quality of exterior appearance and overall quality of construction. Affordable unit size should be generally representative of the unit sizes within the market-rate portion of residential projects, as acceptable to the Community Development Director. Interior features and finishes in affordable units shall be durable, of good quality and consistent with contemporary standards for new housing. The affordable units shall be dispersed throughout the residential project in a manner acceptable to the Community Development Director unless an alternative is approved by the review authority.

7. Affordable units provided pursuant to one of the alternatives set forth in this Chapter shall be approved and completed no later than time prescribed in this Chapter.

C. For residential projects that include both a for-sale project and a rental project, the provisions of subsection (A) of this section shall apply to the for-sale project, and the provisions of subsection (B) shall apply to the rental project.

D. Exemptions from Inclusionary Housing Requirements. This Chapter shall not apply to the following:

1. Existing residences which are altered, improved, restored, repaired, expanded or extended, provided that the number of units is not increased, except that this Chapter shall pertain to the subdivision of land for the conversion of apartments to condominiums.

2. The construction of a new residential structure which replaces a residential structure that was destroyed or demolished within two years prior to the approval of a building permit for the new residential structure, provided that the number of residential units is not increased from the number of residential units of the previously destroyed or demolished residential structure.

3. Accessory dwelling units not constructed to fulfill Inclusionary Housing Requirements.

4. Those residential units which have obtained approval of a Vesting Tentative Map or a Development Agreement prior to the effective date of this Ordinance.

Section C4-178. Timing of Performance.

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) A. Affordable Housing Plan.

1. Any application for the first approval of a residential project shall include an Affordable Housing Plan describing how the project will comply with the provisions of this Chapter. The Affordable Housing Plan shall be processed concurrently with all other applications required for the residential project. As an alternative to compliance with the Inclusionary Housing Requirements, an applicant may propose one or a combination of the alternatives listed in Section C4-l79 as part of the Affordable Housing Plan.

2. The Affordable Housing Plan shall be considered by and acted upon by the review authority with authority to approve the residential project. Before approving the Affordable Housing Plan, the review authority shall consider whether the Affordable Housing Plan conforms to this Chapter. The review authority may approve an alternative or a combination of alternatives listed in Section C4-l79 if it concludes that the alternative conforms to the standards in Section C4-l77. The review authority may also modify the timing requirements for construction and occupancy of market rate units to accommodate phasing schedules, model variations, or other factors, if the review authority determines this will provide greater public benefit.

3. The approved Affordable Housing Plan for a residential project, or for a building phase in a residential project, where phasing has been approved as part of discretionary project approvals, may be amended prior to issuance of any building permit for the residential project or building phase, if applicable. If the applicant desires any other modification to the approved Affordable Housing Plan, that modification shall be acted upon prior to issuance of any building permit by the review authority that previously approved the Affordable Housing Plan.

B. Affordable Housing Agreement.

1. Affordable Housing Agreement shall be entered into by the City and the project owner prior to final map approval, or where a map is not being processed, prior to issuance of any building permit for such lots or units. If the project's affordable housing obligation will be met entirely through the payment of affordable housing fees, no Affordable Housing Agreement shall be required.

2. The Affordable Housing Agreement shall specify the number, type, location, size, and phasing of all affordable housing units, occupancy requirements, eligibility requirements, provisions for income certification and screening of potential purchasers or renters of units, resale control mechanisms, including the financing of ongoing administrative and monitoring costs, consistent with the approved Affordable Housing Plan, as determined by the Community Development Director.

3. To assure the affordability of the unit, the Affordable Housing Agreement shall be

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) recorded with the property deed prior to the sale of the affordable unit or prior to final inspection for a rental project.

C. Conditions of Approval. Any tentative map, land use permit, or site development review approving residential development projects subject to this Chapter shall contain conditions sufficient to ensure compliance with the provisions of this Chapter. Conditions to carry out the purposes of this Chapter shall be imposed on the first approval for a residential project. Additional conditions regarding the approved Affordable Housing Plan may be imposed on later City approvals or actions, including without limitation, planned unit development approvals, subdivision approvals, land use permits, and building permits.

D. Concurrent Construction. All affordable units in a project or phase of a project shall be constructed concurrently with market-rate units, unless the review authority determines that extenuating circumstances exist that make concurrent construction infeasible or impractical.

E. Certificate of Occupancy. In any residential project, no final certification of occupancy of any market-rate unit shall be completed until the permittee has either:

1. Completed construction of on-site affordable units sufficient to meet the requirements of the Affordable Housing Agreement; or

2. Paid affordable housing fees consistent with City-adopted procedures for payment; or

3. Completed corresponding alternative performance under Section C4-179.

F. Continued Affordability.

1. The term of an Affordable Housing Agreement required by subsection (B) of this section for all affordable units shall be a 55-year term. In the case of affordable units that are sold or transferred during the required term, each change of ownership will require a new 55-year term to be recorded.

2. For-sale affordable units which are initially owner-occupied shall not be rented by the owner, except in cases of substantial hardship including, but not limited to, active military duty and illness, and on specified terms as provided in a resale restriction agreement or other agreement acceptable to the Community Development Director.

Affordable unit(s) rented in the case of substantial hardship must be rented at an affordable rent to an eligible household.

3. The maximum sales price permitted on resale of an affordable unit designated for owner-occupancy shall be the lower of: (1) fair market value; or (2) the seller's lawful purchase price, increased by the rate of increase of annual area median income during

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) the seller's ownership. The sales price may also be modified to account for capital improvements made by the seller, deferred maintenance, and the seller's necessary costs of sale. The resale restrictions shall provide an option (first right of refusal) to the City to purchase any affordable owner-occupancy unit at any time the owner proposes sale.

4. If the property owner is unable to sell any or all of the affordable units to eligible buyers after exhausting commercially reasonable efforts to do so for a period of 120 days, upon 90 additional days' notice to the City and on satisfaction of such further conditions as may be included in City-approved restrictions (such as a further opportunity to identify an eligible buyer, sale to a nonprofit affordable housing organization, or additional marketing by owner), the owner may sell the affordable unit at a fair-market value and shall pay the City an amount equal to the difference between the sales price and the affordable ownership cost.

The amount paid to the City shall be deposited into the City's Affordable Housing Fund as defined in Section C4-180. After such a sale, the unit shall not be subject to any affordable housing requirement of this Chapter.

G. Monitoring of Compliance. Each Affordable Housing Agreement shall include provisions for the monitoring by the City of each residential development and each affordable unit for compliance with the terms of this Chapter. Such provisions may include annual compliance reports to be submitted to the City by the property owner and the City may conduct periodic on-site audits to ensure compliance with all applicable laws, policies, and agreements.

Section C4-179. Alternatives to Constructing New Affordable Units.

As an alternative to compliance with the other provisions of this Chapter, an applicant proposing a new residential project may propose one or a combination of the following alternatives as part of its Affordable Housing Plan. The review authority may approve the alternative if the alternative conforms to the standards in the relevant subsection. Any affordable units provided by an applicant pursuant to one of the following alternatives shall comply with the standards contained in Section C4-178, and shall be roughly equivalent in value to the Inclusionary Housing Requirement contained in Section C4-177.

A. Voluntary Provision of Rental Units. Where affordable units are required in a for sale project by Section C4-177, the applicant may ask to initially provide rental units affordable to very low-, low- and moderate-income households at rents as prescribed in subsection (A)(1) of this section.

1. At least 15 percent of all units in the residential project shall be exclusively offered for rent to very low- and low-income households. Of the units in the residential project, 50 percent shall be exclusively offered to very low-income households at rents affordable to very low-income households, and 50 percent shall be exclusively offered to low-income households at rents affordable to low-income households.

Variations that provide a higher total percentage of affordable units may be

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) considered.

2. The affordable rental units shall be comparable in size and type to the market-rate units, including the number of bedrooms per unit.

3. A rent regulatory agreement acceptable to the Community Development Director, and consistent with the requirements of this Chapter, shall be recorded against the residential project prior to any final inspection for occupancy of any unit in the residential project.

4. The rent regulatory agreement shall be in place for 55-years or until such time as the units are sold, whichever occurs first. The rent regulatory agreement shall include provisions for sale of the affordable units and relocation benefits for tenants of the affordable units if the owner of the residential project later determines to offer any affordable units in the residential project for sale. The owner shall provide all notices to prospective tenants of the residential project required by State law and shall additionally, at the time sale of the units is proposed, provide all tenants of the rental affordable units with the same notices, rights, and relocation benefits for residential condominium conversion projects. The owner shall provide as many affordable units at affordable ownership cost as were originally required by the project approval. At the time of sale, resale restrictions, deeds of trust and/or other documents acceptable to the Community Development Director, all consistent with the requirements of this Chapter, shall be recorded against the affordable units for a term of 55-years.

5. The Community Development Director may, from time to time, establish affordable rents in compliance with the requirements of this Chapter and based on recently available data.

B. Off-Site Development. Some or all of the required affordable units may be constructed off site, or an existing off-site development may be acquired and rehabilitated to provide some or all of the required affordable units. This type of alternative may be allowed if the review authority determines that the combination of location, unit size, unit type, pricing, and timing of availability of the proposed off-site affordable units would provide equivalent or greater benefit than would result from providing those affordable units onsite, or if the review authority City determines that on-site construction of those affordable units would be infeasible. Any off-site affordable units must be constructed or rehabilitated prior to or concurrently with construction of the on-site residential development. The off-site development location must be located within the City of San Ramon and be appropriately zoned with all required entitlements issued for the off-site development alternative before building permits are issued for the on-site residential development.

C. Preservation of Affordable Units at Risk of Loss. The applicant may propose to preserve existing affordable units at risk of loss to provide the affordable housing required by this

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) Chapter.

1. The review authority may approve preservation of affordable units at risk of loss pursuant to this subsection only if the proposal meets all of the following conditions:
a. The affordable units to be preserved shall be affordable to very low- and low income households; and
b. The term of affordability shall be extended for a minimum of 55-years for both rental and for-sale affordable units; and
c. The affordable units to be preserved shall be shown as at-risk of loss in the Housing Element of the City's General Plan, or the review authority must find at a public hearing that the affordable units are eligible to, and reasonably expected to, convert to market-rate units in the next five years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use; and d. Prior to occupancy of the residential project, the affordable units to be preserved shall be in safe and sanitary condition and in compliance with all codes.

2. No building permit shall be issued for any new units in the residential project until all of the required regulatory agreements are deemed acceptable to the Community Development Director and have been recorded to extend the term of affordability for the affordable units at risk of loss as required by this subsection.

D. Land Dedication. An applicant may dedicate land to the City or City-designated local non profit housing developer in lieu of construction of some or all of the required affordable units, if the review authority finds:

1. The dedication of land in lieu of constructing affordable units is consistent with the Chapter's goal of creating, preserving, maintaining, and protecting housing for very low-, low- and moderate-income households; and

2. The dedicated land is useable for its intended purpose, is free of toxic substances and contaminated soils, and is fully improved with infrastructure, adjacent utilities, grading, and all development-impact fees paid excluding any affordable housing fees; and

3. The proposed land dedication is of sufficient size to construct or exceed the number of affordable units that the applicant would otherwise be required to construct by Section C4-177.

E. The review authority may accept any combination of on-site construction, off-site construction, affordable housing fees, and land dedication or any other feasible

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) alternative that in the review authority's determination would provide equivalent or greater benefit than that which would result from providing on-site affordable units.

Section C4-180. Affordable Housing Fund.

Affordable housing fees shall be deposited into an "Affordable Housing Fund" ("Fund").

A. All monies collected pursuant to this Chapter shall be deposited into the Fund.

B. Payment of the affordable housing fee shall be added as a condition of approval for development projects subject to this Chapter.

C. The fee amount shall be established by resolution adopted by the City Council, which may be amended from time to time by the Council.

D. All monies in the Fund, together with any interest earnings on such monies less administrative charges, shall be used or committed to use by the City for the purpose of providing or supporting very low-, low-, and moderate-income ownership or rental housing in the City.

E. The City shall prepare an annual report to the City Council identifying the balance of monies in the Fund, the affordable units provided, and any monies committed to providing or supporting very low-, low-, and moderate-income housing. The annual report shall also include a review of administrative charges.

Section C4-181. Enforcement.

A. The Community Development Director shall enforce this Chapter, and its provisions shall be binding on all agents, successors, and assigns of an applicant. The Community Development Director may suspend or revoke any building permit or approval upon finding a violation of any provision of this Chapter. No land use approval, building permit, or certificate of occupancy shall be issued for any residential development unless exempt from or in compliance with this Chapter. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny, or suspend any permit or development approval.

B. The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.

Section C4-182. Waiver.

A. Notwithstanding any other provision of this Chapter, the requirements of this Chapter may be waived, adjusted, or reduced if an applicant shows, based on substantial evidence, that there is no reasonable relationship between the impact of a proposed residential project and the requirements of this Chapter, or that applying the requirements of this Chapter would take property in violation of the United States or California Constitutions.

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) B. Any request for a waiver, adjustment, or reduction under this section shall be submitted to the City concurrently with the· Affordable Housing Plan required by this Chapter. The request for a waiver, adjustment, or reduction shall set forth in detail the factual and legal basis for the claim.

C. The request for a waiver, adjustment, or reduction shall be reviewed and considered by the review authority for the application in the same manner and at the same time as the Affordable Housing Plan. It may only be approved following adoption of written findings to the extent necessary to avoid an unconstitutional result.

Section C4-183. Expeditious Processing of Development Application The Community Development Director shall make all reasonable efforts to expedite the processing of development applications with inclusionary housing obligations under this Chapter. If any such application is not approved within four (4) months following the date the application was deemed complete, the Director shall report in writing and in an oral presentation to the City Council on the status of the project.

Section C4-184 through C4-189. Reserved.

SECTION 2. CEQA
The City Council finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15378 and 15061 of the CEQA Guidelines in that the activity has no potential for resulting in a direct or reasonably foreseeable indirect physical change in the environment.

SECTION 3. Severability
If any part of this Ordinance is held invalid for any reason by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of the Ordinance if such invalid portion thereof had been deleted.

SECTION 4. Effective Date
This Ordinance shall take effect thirty (30) days from the date of its passage. Before the expiration of fifteen (15) days after its passage, this Ordinance shall be posted in three (3) places within the City of San Ramon along with the names of the members of the City Council voting for and against the same.

The foregoing Ordinance was introduced at the meeting of the City Council of the City of San Ramon on October 10, 2023, and after public hearing, was adopted on <<DATE>> by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) David E. Hudson, Mayor
ATTEST:
________________________
Christina Franco, City Clerk

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Attachment: A: Ordinance (Next In Line) (2023-34 : IHO Update CC) From: East Bay for Everyone
To: Analisa Garcia
Subject: Re: City of San Ramon Inclusionary Housing Ordinance Update Date: Thursday, September 21, 2023 8:55:23 PM
***| EXTERNAL EMAIL: Think before you click and do not open attachments unless you know they are safe. |***
We think it's good that you are aligning single family and multifamily rules for inclusionary percentages but worry especially in the current economic climate that the numbers won't pencil and we'll end up with 15% affordable of 0 new homes, and 0 homes is worse than a smaller percentage. It would be great to see evidence of an economic study or discussions with developers that indicate both the SF and MF numbers are feasible right now.

On Thu, Sep 21, 2023 at 8:48 PM East Bay for Everyone <[email protected]> wrote:

Mrs. Garcia,
Thank you very much for reaching out and including us. I regret to inform you we missed this message until just now because it was in our spam folder.

We'll take a look at the link now!
Best,
Kevin
On Wed, Sep 13, 2023 at 4:08 PM Analisa Garcia <[email protected]> wrote:

Good Afternoon,
The City of San Ramon is in the process of updating the Inclusionary Housing Ordinance.

To learn more about the upcoming changes and to view future meeting dates, please visit our webpage linked here.

Thank you,
Analisa Garcia | Assistant Planner | Planning Services Division City of San Ramon | 7000 Bollinger Canyon Road | San Ramon, CA 94583 T: 925-973-2571 | F: 925-830-0100
[email protected] | https://protect-us.mimecast.com/s/XtjECM8x6ghqxWzRswul19?

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Attachment: B: Public Comment Received September 21, 2023 (2023-34 : IHO Update CC) domain=sanramon.ca.gov

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Attachment: B: Public Comment Received September 21, 2023 (2023-34 : IHO Update CC)