City of East Palo Alto

270 Pages·2014·7.77 MB·English

City of East Palo Alto

CITY COUNCIL
AGENDA
TUESDAY, JULY 15, 2014
7:30 P.M
.
EPA Government Center
2415 University Ave - First Floor - City Council Chamber

Notice of Availability of Public Records: All public records relating to an open session item which are
not exempt from disclosure pursuant to the Public Records Act, that are distributed to the majority of the
City Council will be available for public inspection at the City Clerk’s Office, 2415 University Avenue,
East Palo Alto, Ca at the same time that the public records are distributed or made available to the City
Council. Such documents may also be available on the East Palo Alto website www.ci.east-palo-
alto.ca.us subject to staff’s ability to post the documents prior to the meeting. Information may be
obtained by calling [phone].

Community Forum and Special presentations: Members of the audience may address the City Council
on any agenda item or on any item of interest to the public within the Council's purview, before or during
the Council's consideration of the item. If you wish to address the City Council, please fill out a Speaker
Sheet and give it to the City Clerk. When your name is called, step to the podium and address the City
Council. Speakers are limited to two minutes each, and presentations are limited to 10 minutes. The
Mayor has the discretion to lengthen or shorten the allotted times.

East Palo Alto City Council Chambers is ADA compliant. Requests for disability related
modifications or accommodations, aids or services may be made by a person with a disability to

the City Clerk's office no less than 72 hours prior to the meeting as required by Section 202 of the
Americans with Disabilities Act of 1990 and the federal rules and regulations adopted in
implementation thereof.

REGULAR CITY COUNCIL MEETING 7:30 p.m.

1. CALL TO ORDER AND ROLL CALL

2. APPROVAL OF THE AGENDA

3. PUBLIC COMMENT REGARDING CONSENT CALENDAR ITEMS
Notice to the public: Members of the public wishing to address the Council on Consent Calendar
Items are requested to submit a completed speaker sheet to the City Clerk. Each speaker is
limited to two minutes. The Mayor has the discretion to lengthen or shorten allotted times. There
will be no separate discussion of Consent Calendar items as they are considered to be routine by
the City Council and will be adopted by one motion. If a member of the City Council, staff, or
public requests discussion on a particular item, that item may be removed from the Consent
Calendar and considered separately.
4. APPROVAL OF CONSENT CALENDAR
City Council Ordinances, Resolutions/Informational Reports/Approval of Actions and
Motions

Recommendation: That the City Council Adopt the Consent Calendar as indicated below.

A. Claims - None

B. Minutes - None

C. By motion, adopt the Affordable Housing Program Ordinance.
(John Doughty, Community and Economic Development Director)

D. Adopt a resolution authorizing the Bay Area Water Supply and Conservation Agency
to initiate, defend, and settle arbitration related to the water supply agreement with
the City and County of San Francisco.
(John Doughty, Community and Economic Development Director)

E. Adopt a resolution approving the Plans and Specifications for Runnymede Storm
Drain Phase II & O’Connor Pump Station Outfall Project and authorizing
advertisement of the project for bid, authorizing the City Manager to analyze and
accept the bids received, and award a construction contract to the lowest responsive
and responsible bidder, and establishing a change order contingency of up to 10% of
the bid amount, not-to-exceed a total budget of $1,262,000.
(John Doughty, Community and Economic Development Director)

F. Adopt a resolution:
1. Approving the Plans and Specifications for Cooley Landing Park, Phase III,
Education Center and authorizing advertisement of the project for bid; and,
2. Authorizing the City Manager to accept and analyze the bids received, award a
construction contract to the lowest responsive and responsible bidder and
establish a change order contingency of up to 10% of the bid amount, for a total
project budget not-to-exceed $2,650,000.
(John Doughty, Community and Economic Development Director)

G. By motion approve the 2014 Legislative Recess to begin August 1, 2014 through
August 31, 2014 and resume business with a regular scheduled Council meeting on
September 2, 2014. (No Written Material) (Nora Pimentel, Deputy City Clerk)

H. Proclamations
1. Recognizing Quattro as a award recipient of “As Fresh as it Gets”
2. Declaring Saturday, July 26, 2014 Collard Greens Cultural Festival Day
3. Recognizing National Night Out

I. Written Communications: None

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5. SPECIAL PRESENTATIONS (Government Code §54954.3(b)):
Presentations are limited to 10 minutes. The Mayor has the discretion to lengthen or shorten the
allotted times.
A. East Palo Alto Boxing Club Update (Lee Katzman, Secretary and Johnnie C. Gray, President)

6. ORAL REPORTS

A. Report Out of Special Meeting Closed Session

B. Staff Reports

C. City Council Reports

7. COMMUNITY FORUM
Notice to the public: Anyone wishing to address the Council on any matter for which another
opportunity to speak is not provided on the Agenda, and which is within the Council’s purview, is
requested to submit a completed Speaker Sheet to the City Clerk. When your name is called, step
to the podium and address the Council. Each speaker is limited to two minutes. The Mayor has
the discretion to lengthen or shorten allotted times.

8. PUBLIC HEARINGS

A. Affordable Housing Impact Fee
(John Doughty, Community and Economic Development Director)

Recommendation
Upon closing the public hearing, adopt a resolution adopting the Affordable Housing Nexus
Study and establishing an Affordable Housing Impact Fee.

9. POLICY AND ACTION ORDINANCES, RESOLUTIONS, INFORMATIONAL REPORTS

A. Update on Measure C, Strategy #1 Improving Educational Outcomes for
Middle/High School Youth and Providing Development Services Pilot Program
(Miriam Torres, Truancy Prevention Pilot Program Coordinator)
CONTINUED FROM JUNE 17 AND JULY 1, 2014

Recommendation
Accept the FY13-14 evaluation report on the Measure C Violence Truancy Prevention
Pilot Program: Adopt a resolution: 1) authorizing an extension of the pilot program
through FY14-15; and 2) directing staff to submit a follow-up report on the Pilot Program
for Council approval no later than July 2015.
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B. Development Impact Fee Program
(John Doughty, Community and Economic Development Director)
CONTINUED FROM JULY 1, 2014

Recommendation
Receive the Nexus Study and Development Impact Fee Program (the Program) report, and
direct staff to: 1) hold a community meeting to receive community input regarding the
Program; and 2) return to the City Council in the fall of 2014 with a draft Ordinance and
Fee Resolution for City Council consideration.

C. Discussion on Potential New Moratorium on Land Use Entitlements West of
Highway 101
(John A. Nagel, City Attorney and John Doughty, Community and Economic Development Director)

Recommendation
Discuss whether to impose a new moratorium on land use entitlements west of Highway
101; and by motion, direct the Office of the City Attorney to return to City Council, no
later than September 16, 2014, with an interim moratorium ordinance and a
recommendation as to duration (i.e., one-year or two-year).

D. Site Work for a New Playground at Bell Street Park
(John Doughty, Community and Economic Development Director)

Recommendation
Adopt a resolution:
1. Approving the plans and specifications for a playground at Bell Street Park,
retroactively authorizing the advertisement of the project for bid;
2. Authorizing the City Manager to accept and analyze the bids received, award a
construction contract to the lowest responsive and responsible bidder, and establish a
change order contingency of 10% of the bid amount; and authorizing the City Manager
to allocate additional funding in an amount not to exceed $125,000 for the project from
the Capital Improvements Reserve Fund, if needed.

E. Proposed Community Panel to Interview Candidates for Police Chief
(Barbara Powell, Assistant City Manager)

Recommendation
That each City Council Member provide to the City Manager the name of one individual to
serve on a Community Panel to interview candidates for the position of Police Chief, no
later than Monday, July 21st and provide clarification as to the City Council intent
regarding their direction to the City Manager for community involvement in the interview
process for the number of finalists as determined by the City Manager.
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10. ADJOURNMENT
In memory of Debbie Bickell

Mission Statement
The City of East Palo Alto provides responsive, respectful, and efficient public services
to enhance the quality of life and safety for its multi-cultural community.
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Consent Calendar
CITY OF EAST PALO ALTO
Item: #4C
OFFICE OF THE CITY MANAGER
2415 University Avenue
East Palo Alto, CA 94303

City Council Agenda Report

Date: July 15, 2014

To: Honorable Mayor and Members of the City Council

Via: Magda A. González, City Manager

From: John Doughty, Community and Economic Development Director

Subject: Affordable Housing Program Ordinance

Recommendation

By motion, adopt the Affordable Housing Program Ordinance.

Alignment with City Council Strategic Plan

This recommendation is aligned with:
 Priority #3: Increase organizational effectiveness and efficiency
 Priority #6: Create a safe and healthy community

Background

On July 1, 2014, the City Council held a public hearing on the Affordable Housing Program
Ordinance and upon conclusion unanimously waived first reading and introduced an ordinance,
amended from the proposed Ordinance as discussed below, repealing Chapter 8.5 of the East Palo
Alto Zoning Ordinance entitled “Below Market Rate Housing Program” and simultaneously
reenacting Chapter 8.5 with new provisions, renaming it the “Affordable Housing Program.” The
City Council made the following amendments to the proposed ordinance at its July 1st meeting:

 Increase the proposed 15% set-aside of inclusionary units to 20%, which was the level
previously set under the Below Market Rate Housing Program. The option to set-aside
inclusionary units would apply if an applicant elected to construct ownership units, rather
than pay the affordable housing impact fee;
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The City Council also directed Staff to return to City Council after the Ordinance is adopted so
that City Council could consider possible additional amendments to address the following areas
of concern:

 For rental projects, explore alternatives to the “percentage change in median rents,”
as documented by the City’s Rent Stabilization Board for annual adjustments to the
Affordable Housing Impact Fee, as set forth in Section 6182.3 of the Ordinance;

 Consider amending or deleting Section 6182.9 (Waiver) in light of concerns
expressed at the public hearing by Councilmember Abrica; and

 Consider amending the Ordinance to specifically state that housing constructed
under the Affordable Housing Program is affordable to the range of incomes
commonly found within the City of East Palo Alto (i.e., moderate-income, low-
income, very low-income, and extremely low-income levels).

Analysis

The Affordable Housing Program Ordinance reflects affordable housing “best practices” and the
legal requirements in existence during its passage. It also attempts to anticipate the changing
legal landscape that is currently in a state of flux as evidenced by the California Supreme Court’s
decision to review the legal basis that many local jurisdictions rely upon to enact affordable
housing ordinances. A summary of the changes from the existing Below Market Rate Housing
Program Ordinance are included in Attachment 1.

As noted in the July 1st staff report, new and emerging law counsels in favor of closely adhering
to Assembly Bill 1600, commonly referred to as the Mitigation Fee Act, when enacting fees,
including an affordable housing impact fee. This change represents a policy shift away from
requiring developers to provide a certain percentage of affordable units (or inclusionary units)
within each residential project, commonly referred to as an “inclusionary requirement” or “set-
aside,” as the primary mode of compliance in favor of an “Affordable Housing Impact Fee.” The
Affordable Housing Program Ordinance complies with the most stringent pronouncements of
California law. First, by complying with the Mitigation Fee Act, the Nexus Study establishes a
reasonable relationship between the fee and the impact caused by market-rate development.
Second, by anticipating emerging law, the Nexus Study makes the requisite factual findings a
local jurisdiction may have to make to impose an affordable housing impact fee if the California
Supreme Court so rules.

The Affordable Housing Program Ordinance now incorporates the vast majority of
recommendations in the Nexus Study prepared by David Rosen and Associates (“DRA”), in
addition to Staff recommendations.

DRA’s remaining recommendations concerning the maximum supportable affordable housing
impact fee amount will be considered by City Council in a companion staff report.

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Fiscal Impact

The approval of the Affordable Housing Program Ordinance will generate special (restricted)
revenues dedicated to affordable housing. Administration of affordable housing funds and
programs are currently funded by the General Fund, but could be wholly or partially funded by
funds generated by the imposition of the Affordable Housing Impact Fee as required by the
Ordinance.

Attachments
1. Summary of Changes
2. Affordable Housing Program Ordinance
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ATTACHMENT 1

TABLE 1: SUMMARY OF CHANGES TO CHAPTER 8.5

Existing Section New Section Comments
Section 6182.1 FINDINGS 1) Mitigation Fee Act (AB 1600)
Section 6182.1. Findings.
requirements are incorporated
in subsection (a).
2) New housing cycle, and
element updates to subsection
(b) are included.
3) Two new subsections are
added. This includes (j)
regarding the Redevelopment
Agency’s dissolution, and (k),
concerning the Nexus Study.
Section 6182.2 1) Affordable Housing Impact
Section 6182.2. Definitions.
DEFINITIONS Fee, as a newly defined term
2) New construction is defined
to include voluntary removal
and replacement of existing
housing.
Section 6182.3 BASIC 1) The requirements for rental
Section 6182.3. Basic requirement—
REQUIREMENT and ownership units are
Residential ownership projects.
combined.
2) Inclusionary requirements are
eliminated for rental projects
only.
3) Affordable housing impact fee
is established.
4) Alternatives for residential
ownership projects now
include: constructing
affordable housing and
converting market-rate
housing or commercial
property to affordable units to
meet a 20% set-aside of
inclusionary units. Rental
units are not subject to the
20% set-aside, except city-
subsidized rental projects.
5) Requirement now closely
match the density bonus
program requirements, as
outlined in Section 6181.18, if
an applicant elects to
construct affordable housing.
Section 6182.4 DENSITY A section titled density bonus is
Section 6182.4. Basic requirement—
BONUS incorporated in place of the
Residential rental projects.
residential rental requirements.
Section 6182.5 TIME “Time Performance” expressly
Section 6182.5. Time performance
PERFORMANCE states when fees are due, and the
required.
REQUIRED need for an Affordable Housing
Impact Fee summary.
Section 6182.6 This section is revised to ensure
Section 6182.6. Continued
ADMINISTRATIVE that the provisions parallel those
affordability; administrative
GUIDELINES already established Chapter 8.4
guidelines. Density Bonus.
This section has been eliminated.
Section 6182.7. Alternatives to on-site
However, alternatives are
construction.
allowed and are now
incorporated in Section 6182.3.
Section 6182.7 USE AND Staff incorporated additional
Section 6182.8. Use and expenditure
EXPENDITURE OF FEES language regarding the
of fees.
administrative costs that are
recoverable, as contained in
DRA’s recommendation 8, and
renumbered this section to reflect
deletion of Section 6182.7 in the
BMR ordinance.
Section 6182.8 Exemptions are now included,
Section 6182.9. Waiver.
EXEMPTIONS which were omitted from the

BMR ordinance. This section
was also renumbered.
Section 6182.9 The City Attorney is now named
Section 6182.10. Enforcement.
ENFORCEMENT as the responsible party for
enforcement of this Chapter. This
section is also renumbered.
Section 6182.10 A new section that provides the
NEW SECTION
City Council the discretion to
waive, limit, or suspend the
requirements of this Chapter.
Section 6182.11 A new section that clarifies that
NEW SECTION
existing appeal provisions can be
used to redress decisions made
by the Planning Commission and
the City Council pursuant to this
Chapter.
Not Applicable This section is deleted from the
Section 6182.11. Severability.
codified version of the BMR
ordinance and included in
Section 4 of the new ordinance.

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