Agenda packet — Palo Alto City Council, September 12, 2022 (part 1 of 2)

1 City Council
Special & Regular Meeting
Monday, September 12, 2022
5:00 PM & 6:00 PM
Council Chamber & Virtual

AMENDED AGENDA
Amended agenda items appear in red below.

Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person.

HOW TO PARTICIPATE

VIRTUAL PARTICIPATION
CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900-6833
Th
e meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center at https://midpenmedia.org.

TIME ESTIMATES
Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.

REVISED PUBLIC COMMENTS
Public Comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments ca n be submitted in advance to [email protected] and
will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are re ferencing in your email subject line.

P
owerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the City Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. 2 Special Meeting September 12, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspect
ion at www.CityofPaloAlto.org.

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:00 – 5:25 pm)

2. Appreciation for Congresswoman Anna G. Eshoo, United Sta tes Representative of California’s 18thCongressional District, for advocating for the Historic Inflation Reduction Act and for securing $7 million for a variety of projects through Community Project Funding to support Palo Alto Item reordered

1. Appointment of Candidates for the Human Relations Commission

STUDY SESSION

3. Report and Discussion on Valley Water’s Purified Water Project Including Location of the Advanced Water Purification Facility at the Former Los Altos Treatment Plant Site, Reverse Osmosis Concentrate Management, Upcoming Agreements and Decisions (5:25 – 6:30 PM)

ADJOURN SPECIAL MEETING AND CONVENE REGULAR MEETING

4. 70 Encina Avenue ( 22PLN-00198): Request for a Prescreening to Consider Rezoning the Subject Property From Community Commercial (CC) to Planned Community (PC/PHZ) to Allow Development of a Building With Approximately 20 Dwelling Units and 28 Parking Spaces.

Environmental Assessment: Not a Project. The Formal Application Will be Subject to California Environmental Quality Act (CEQA) Review.

Zoning District: CC (Community Commercial). (6:30 – 7:30 PM)

5. 4333 and 4345 El Camino Real [22PLN -00210]: Request by Toll Bros. for Prescreening of Thei r Proposal to Rezone the Subject Properties from CS to PHZ to Allow Redevelop the Two Sites with 12 Dwelling Units and 55 Dwelling Units, Respectively. Environmental Assessment:

Not a Project. (7:30 – 8:30 PM)
BREAK (8:30 – 8:40 PM)

AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:40 – 8:55 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.

CONSENT CALENDAR (8:55 – 9:00 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.

Presentation
Applicant Presentation
Public Letters
Staff Presentation
Applicant Presentation
Staff Presentation
3 Sp ecial Meeting September 12, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for publi
c inspection at www.CityofPaloAlto.org.

6. Approve Minutes from the August 8, 2022 , August 10, 2022, August 15, 2022, and the August 22, 2022 City Council Meetings

7. Approval of Amendment Number 1 to Contract Number C20177684 with SCA for Street Sweeping Services, for Modification and I ncrease of Contract by $1,080,674 to Include Prevailing Wages for a Revised Not to Exceed amount of $6,688,906 for the Remaining Three Years of a Five Year Contract; and Approval of Budget Amendment in the Refuse Fund

8. Adoption of the Amended Community D evelopment Block Grant (CDBG) Citizen Participation Plan

9. Adoption of a Resolution Authorizing Use of Teleconferencing for Council Meetings During Covid-19 State of Emergency

10. Adoption of a Park Improvement Ordinance for Renovation of the Mitchell Park Dog Park as Recommended by the Parks and Recreation Commission

11. Recommendation from the Human Relations Commission on the naming of the holiday on the second Monday in October

12. Approval of Contract No. C23183740 with StreetSense CA, LLC for Economic Development Consulting Services for a Term Expiring December 31, 2025 and a Total Amount Not -to-Exceed $261,995; and Approval of a Budget Amendment in the General Fund

13. QUASI-JUDICIAL. 215/217 Alma Street {22PLN-00164}: Ratification of Director's Approval of Waiver From the Retail Preservation Ordinance for an Alternative Viable Use to Allow for an Animal Care Provider (Modern Animal) to Occupy a 4,200 Square Foot Portion of the Site.

Zone District: Commercial Downtown Neighborhood with a Pedestrian Combining District (CD -N[P]). Environmental Assessment: Exempt from CEQA in Accordance With Guidelines Section 15061(b)(3) and 15301.

CITY MANAGER COMMENTS (9:00 – 9:15 PM)

ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.

14. PUBLIC HEARING: Adoption of a Resolution Confirming the Weed Abatement Report and Ordering the Cost of Abatement to be a Special Q&A
Q&A
Q&A
Presentation
4 Sp ecial Meeting September 12, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for publi
c inspection at www.CityofPaloAlto.org.

Assessment on the Respective Properties Described Ther ein Item number updated (9:15 – 9:45 PM)

15. Adoption of an Ordinance Approving the Police Department's Military Equipment Use Policy Under AB 481 Item number updated (9:45 – 10:30 PM)

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)

ADJOURNMENT

INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

16. Semiannual Update on the Status of Capital Improvement Program Projects Item number updated

17. Local Hazard Mitigation Plan Annual Update Item number updated

OTHER INFORMATION
Standing Committee Meetings
Po
licy & Services Committee Meeting September 13, 2022
Publi
c Comment Letters
Sc
hedule of Meetings
Q&A
Presentation
5 Special Meeting September 12, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

PUBLIC COMMENT INSTRUCTIONS

Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

1. Written public comments may be submitted by email to [email protected].

2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom -based meeting. Please read the following instructions carefully.

A. You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer.

B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.

D. When called, please limit your remarks to the time limit allotted.

E. A timer will be shown on the computer to help keep track of your comments.

3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above.

4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long yo u have to speak. When called please limit your remarks to the agenda item and time limit allotted.

CLICK HERE TO JOIN
Meeting ID: 362 027 238 Phone:1(669)900-6833

City of Palo Alto (ID # 14581)
Office of the City Clerk
City Council CAO Report
Meeting Date: 9/12/2022 Report Type: Special Orders of the Day Title: Appointment of Candidates for the Human Relations Commission
From: Lesley Milton, City Clerk
Recommendation
Staff recommends City Council vote to appoint one candidate to the following position on the Human Relations Commission:
• One (1) position with a term ending on March 31, 2023. **A majority vote (4 yes’s) is required to appoint an applicant.

Background
Boards and Commissions are established as advisory bodies to the City Council, made up of community volunteers that provide essential fe edback on matters of importance to the community. The City Clerk’s office advertises and recruits for vacancies, the Council considers the applications, interviews desired candidates, and makes recommendations for appointment for the open positions.

Commissioner Patti Regehr resigned from the Human Relations Commission on May 31, 2022. As such, the current vacancy staff is requesting to be filled is:
• One (1) position on the Human Relations Commission, with term expiring March 31, 2023
A total of 6 applications have been submitted during the recruitment period.

Interviews
At the August 8, 2022 City Council meeting, the Council elected to interview all 6 applicants ( August 8 HRC Recruitment Report ). Interviews were conducted on August 22, 2022 at approximately 5: 00 PM as a special City 1 Packet Pg. 6

Page 2 ends

Council meeting. Video recordings of the interviews are available on our City of Palo Alto YouTube Channel . Applicants Katie Causey and Sunita de Tourreil withdrew prior to the interview.

All applications received for this position can be accessed online ( All HRC Applications). Ci ty Council will incorporate all interviews into the final selection.

Membership Requirements

Per PAMC 2.22.010, The Human Relations Commission requires each member of the commission to have Palo Alto residency.

Human Relations Commission: One position
Term ending March 31, 2023
• Palo Alto Residency
• APPLICANTS:

1. Donald Barr

2. Katie Causey (withdrew)

3. Sunita de Tourreil (withdrew)

4. Tracy Alejandra Navichoque

5. Chitra Sharma

6. Kat Synder

Public Outreach

Palo Alto Municipal Code 2.16. 060 requires public notification regarding vacancies of the Commissions as follows, “The City Clerk shall exercise their discretion in choosing the method of advertisement that will most effectively reach potential candidates. ” Based on the September 14, 2021 Policy & Services Committee meeting report (available here ) regarding Board and Commission Member demographics and community
representation the City Clerk’s office expanded recruitment efforts through additional means to “most effectively reach potential candidates”.

The Human Relations Commis sion special recruitment invited applications from June 10, 2022 t hrough July 27, 2022 through the new online application process. The vacancy was advertised through various methods in partnership with the Communications team. This included paid and digit al print advertisements in the Daily Post and Palo Alto Weekly; via the City’s website and social media channels; in physical locations of the Palo Alto Libraries and Community Centers; and distributed by e -mail and through the City subscription-based notification lists.
1 Packet Pg. 7
City of Palo Alto (ID # 14734)
City Council Staff Report
Meeting Date: 9/12/2022 Report Type: Special Orders of the Day City of Palo Alto Page 1
Title: Appreciation for Congresswoman Anna G. Eshoo, United States Representative of California’s 18thCongressional District, for advocating for the Historic Inflation Reduction Act and for securing $7 million for a variety of projects through Community Pr oject Funding to support Palo Alto From: City Manager
Lead Department: City Clerk
Recommendation
There is no report for this item. A verbal presentation will take place at the meeting. 2 Packet Pg. 8
City of Palo Alto (ID # 14650)
City Council Staff Report
Meeting Date: 9/12/2022 Report Type: Study Session
City of Palo Alto Page 1
Title: Report and Discussion on Valley Water’s Purified Water Project Including Location of the Advanced Water Purification Facility at the Former Los Altos Treatment Plant Site, Reverse Osmosis Concentrate Management, Upcoming Agreements and Decisions
From: City Manager
Lead Department: Public Works
Recommendation
This is a study session, and no action is required from Council at this time.

Background
The purpose of this study session is to provide the Council with a status update on the City’s efforts with the Santa Clara Valley Water District and the City of Mountain View to improve the quality of recycled water produced by the Regional Water Quality Control Plant (RWQCP) and increase water reuse in the region.

Local Salt Removal Facility: Improving Existing Recycled Water Quality at the RWQCP The RWQCP treats wastewater from six communitie s, including Palo Alto. Currently, much of the treated effluent is discharged into the Bay rather than being reused. The RWQCP produces and distributes approximately 230 million gallons per year of tertiary -treated recycled water to the City of Mountain View, several City -owned parks and facilities, and a commercial truck fill standpipe at the RWQCP . Following public concerns regarding the irrigation of redwood trees and other salt-sensitive species with recycled water, the City prepared an Environmental Impact Report (EIR) focused on water quality issues and salinity impacts. On January 25, 2010, Council approved the Recycled Water Salinity Reduction Policy ( Staff Report ID #111:10, Resolution 9035), including a goal of reducing the recycled water total dissolved solids level to 600 parts per million. In 2017, Valley Water, Palo Alto, and Mountain View finalized a feasibility study and the preliminary design report for a local salt removal facility (Staff Report ID #10627).

Highly treat ed water produced by the local salt removal facility would benefit landscapes currently irrigated with recycled water in Palo Alto, enable Palo Alto to expand its non -potable distribution system, and/or provide a first step toward small -scale potable water production for direct or indirect potable reuse in Palo Alto. The local salt removal project was estimated in 2017 to cost approximately $20 .0 million. Under the terms of the Agreement, Valley Water will 3 Packet Pg. 9
City of Palo Alto Page 2
contribute $16 .0 million (Staff Report ID #10627 ) toward the design and construction of the facility with the balance split betwee n Palo Alto and Mountain View at 25% and 75%, respectively.

Partnership Agreement to Advance Resilient Water Reuse Programs in Santa Clara County In order to increase the quality of recycled water in Palo Alto and increase water reuse in Santa Clara Coun ty, a Partnership Agreement to Advance Resilient Water Reuse Programs in Santa Clara County between Valley Water and the Cities of Palo Alto and Mountain View (Agreement) was executed at the end of 2019 (Staff Report ID # 10627). The Agreement includes three major components: Partial funding by Valley Water ($16 million) for a local salt removal facility at the RWQCP; a Valley Water option to use about half of the effluent from the RWQCP to be treated at a regional purification facility and used elsewhere in the county ; and a water supply option for the cities of Palo Alto and Mountain View to request additional water supply if needed. Palo Alto agreed to assist with siting a regional purification facility in the City and to make best efforts to accommodate reverse osmosis concentrate (ROC) discharge to the wastewater treatment plant’s outfall. Per the terms of the Agreement, Valley Water has been making annual payments of $ 0.2 million since 2020 for the effluent transfer option. Valley Water will provide an annual payment of $1 .0 million for the effluent once the project is complete .

Another collaborative effort between Valley Water and Palo Alto was the Northwest County Recycled Water Strategic Plan (Strategic Plan) , completed in 2019 and presented to Council on March 2, 2020 (Staff Report ID # 10913 ). The Strategic Plan included a preliminary design and business plan for a recycled water distribution system expansion to customers in the Stanford Research Park. Variations of the project , contemplating recycled water service to parts of Los Altos, Los Altos Hills, Mountain View , and East Palo Alto, were also evaluated and compared to potable reuse alternatives.

Proposed Regional Purified Water Project at the Former Los Altos Treatment Plant Site Area B The Purified Water Project is part of Valley Water's water resources strategy to provide a reliable water supply from a variety of sources consistent wit h its Water Supply Master Plan 2040. Valley Water’s objectives are to:
• Implement an indirect potable reuse supply project that provides 10 million gallons per day (MGD) production capacity (11,200 AFY, or acre-feet per year) of sustainable water supply for long-term and future demands.
• Design-construct-operate the project so that it reduces or minimizes environmental impacts.
• Deliver the project in a manner that is cost -effective and provides value to the ratepayers.

The Purified Water Project would include the construction of a new advanced regional water purification facility, associated pump station , and conveyance pipelines . Conveyance will be needed to move effluent from the RWQCP to the purification facility and from the facility to Valley Water’s existing Los Gatos Recharge System complex located in the City of Campbell. The 3 Packet Pg. 10
City of Palo Alto Page 3
Valley Water Board of Directors directed Valley Water staff in December 2021 t o finalize agreements with Palo Alto to locate the facility on the City’s property on San Antonio Road ( the former Los Altos Treatment Plant (LATP) site).

Valley Water plans to implement the Purified Water Project via a Public-Private Partnership (P3) to harness private sector innovation. The benefits to Palo Alto include payments for treated wastewater and a land lease, as well as increased use of treated wastewater to further regional sustainability and climate adaptation goals.

Discussion
The Project includes several components and will require extensive coordination between the participating agencies. The following table outlines the components and the responsibilities of Valley Water, Palo Alto, and Mountain View.

Project Component Valley Water Role Palo Alto Role Mountain View Role Local Salt Removal
Facility
-Funding
-Support Valley Water’s
goal to increase recycled
water use within the
County
-Funding
-Design, construction,
operation, and
maintenance; Distribute
enhanced recycled water
-Funding
-Offtake treated water
Regional Advanced Water Purification Facility
• Regional Water
Purification Facility
-Funding, design,
construction, operation,
and maintenance of
project
-Provide effluent
-Receive and discharge
ROC
N/A
• Site Location -Environmental review
and mitigation including
clean-up; wetland
mitigation
-Design
-Lessee for LATP site
-Property Owner
-Negotiate lease
agreement with Valley
Water
N/A
• Pump Station Funding, design,
construction, operation
and maintenance
-Designate location
-Negotiate lease and
operations and
maintenance agreement
with Valley Water
N/A
• Conveyance
system
Funding, design, and
construction
Review and approval Review and approval
• Reverse Osmosis -Co-negotiate with -Co-negotiate with N/A 3 Packet Pg. 11
City of Palo Alto Page 4
Project Component Valley Water Role Palo Alto Role Mountain View Role Concentrate (ROC) regulators to discharge
at Palo Alto outfall
location
-Assume liability
associated with
discharge of ROC
regulators to discharge at
Palo Alto outfall location
-Determine where ROC will
enter effluent
Regulatory approvals Lead agency on CEQA
and permits for the
Regional Purification
Facility
Coordinate withy lead
federal agency on NEPA
compliance
Support Valley Water
efforts on receiving
regulatory approval
specifically from the
Regional Water Quality
Control Board
N/A
Local Salt Removal Facility at the RWQCP
In 2021, the City of Palo Alto hired Black & Veatch to design the local salt removal facility (Staff Report ID # 11782 ). In May 2022 , staff received a cost estimate for the 60% design that is significantly higher than the original estimate developed in in 2017 . A comparison of the two estimates is shown in the table below:

Table 1: SRF Application and 30% Design Cost Estimates
Estimate
SRF Application
(2017)
(10% Project
Definition)
B&V Design Submittal
(2022)
(60% Project
Definition)
Facility 1.125 MGD AWPS 1.125 MGD AWPS
Indexed Dollar Value 2020 2023
Construction Costs
Direct and Contractor Costs $13,904,000 $33,191,000
Design Contingency and Market Volatility $4,900,800 $4,735,000 Escalation $698,200 $1,977,000
Estimated Bid Price $19,503,000 $40,523,000
Other Project Costs
Owner Controlled Change Order
Contingency, Engineering Services,
Construction Management, and Program
Management
$2,850,000 $12,139,000
Total Project Costs $22,353,000 $52,622,000
AACE Estimate Class (Anticipated Bid Price Class 3 (-20% to +30%) Class 3 (-20% to +30%) 3 Packet Pg. 12
City of Palo Alto Page 5
Accuracy)
The updated cost estimate from Black & Veatch reflects th e volatility and increases in construction prices since 2017 and the progression of the design from conceptual level to a fuller design that includes elements not initially considered . For example, the 60% design includes modifications of required foundations for the facility that require pile driving rather than a mat foundation and raising electrical equipment in alignment with the C ity’s Sea Level Rise policy requirements.

Because this project will receive some f unding from Valley Water ($16.0 million), and anticipates receiving a WaterSMART: Title XVI WIIN Act Water Reclamation and Reuse Projects (USBR Grant for $12 .9 million) the remainder of the project will be funded three quarters by Mountain View (approximately $18.5 million) and one quarter by Palo Alto (approximately $6.2 million) if the project moves forward . Mountain View and Valley Water staff are part of the review process during the design of this project. The 90% design and cost estimate is expected by the end of September 2022, and the cost estimate will be evaluated prior to moving forward with construction.

Site Location and Lease of the Regional Water Purification Facility The proposed site for the regional water purification facility in Palo Alto is the former LATP Area B site located at the end of San Antonio Road in Palo Alto. The environmental work has included the delineation of existing wetlands and characterization of hazardous material site conditions. The geotechnical work include d a field exploration to determine soil conditions at the site. Valley Water and Palo Alto are negotiating a land lease of the 6.4 -acre portion of the larger 13.2-acre LATP for construction of the facility and siting of a pump station at the RWQCP.

A Comprehensive Plan amendment for a portion of the Area B site and a parcel subdivision will be needed. The lease agreement and operations and maintenance agreements will be presented to Council for consideration at a future date. The project will be subject to discretionary review by the Architectural Review Board.

Reverse Osmosis Concentrate Management
Reverse Osmosis is a process that removes minerals, viruses, and other constituents; the same technology is used to convert seawater into fresh drinking water. The av erage efficiency of Reverse Osmosis is 85 percent. That means, for every 100 gallons of treated wastewater feedwater, the purification facility will produce 85 gallons of purified water and 15 gallons of Reverse Osmosis Concentrate ( ROC). ROC contains all the dissolved constituents that were in the feedwater already with no chemicals or other constituents added.

Valley Water has been operating a large, advanced water purification facility in San Jose since 2014. The Silicon Valley Advanced Water Purificat ion Center (SVAWPC) is capable of producing up to 8 MGD of highly purified water. The ROC produced at the SVAWPC is blended with the wastewater effluent at the San Jos e-Santa Clara Regional Wastewater Facility (RWF) and discharged to the Bay under their ex isting wastewater permit. This approach has been used 3 Packet Pg. 13
City of Palo Alto Page 6
without any negative environmental impact since 2014. Valley Water is working closely with the Palo Alto RWQCP staff and the regulators on an approach for discharging the ROC from the regional water purification facility in Palo Alto in a similar fashion.

The San Francisco Bay Regional Water Quality Control Board (Regional Board), which issues the RWQCP’s discharge permit, has been very supportive of the proposed Water Purification Project and this blending approach. The Regional Board has concurred with a suite of technical studies that will be conducted by Valley Water to inform the renewal of the RWQCP’s permit required to support the ROC discharge. The Regional Board will require further studies and may require pretreatment of ROC through feasible means in the future, for example horizontal levees. Palo Alto will ensure risk associated with the discharge of ROC will be borne by Valley Water in the final ROC management agreement .

Homekey Palo Alto Project
As part of the planning process for the Project, the City recognizes a need to coordinate the construction and operation of any new facilities with the emergency shelter project that is also planned for development on another part of the former LATP site (part of Area C).

Last month, the City and its project partner, LifeMoves, received a $26.6 million grant from the State Department of Housing and Community Development (HCD) for an 88 -unit interim transitional housing shelter on a portion of Area C. The design is reflected in the most recent documents through the Architectural Review Board on July 21, 2022 (ARB Staff Report 14546).

Staff is working with Life Moves and Valley Water to ensure that both projects are compatible on the site. Project Homekey will be located on a portion of Area C of the LATP site whereas the purification project will be located on Area B (Figures 1 and 2). Staff is working to find a suitable construction staging area outside of the LATP site, or Valley Water will stage within Area B for the purification project . The staging area concern will require further d iscussion during the project’s design stage.

Staff believes these two projects can coexist since, unlike the RWQCP, the purification plant does not emit any odors and is relatively quiet . Staff also recognizes a need to address the impacts associated wit h the construction of the purification facility. Homekey Palo Alto will be adjacent to the Greenwaste operation yard , which is another commercial (sorting) facility currently planned through June 20, 2026, the term of the Greenwaste contract. 3 Packet Pg. 14
City of Palo Alto Page 7
Figure 1. Current use of the old Los Altos Treatment Plant site Area C; Greenwaste and Homekey Palo Alto will share Area C; Area B is anticipated for the future Valley Water Regional Purification Facility.
3 Packet Pg. 15

City of Palo Alto Page 8

Figure 2. Potential future layout of Area C with Homekey Palo Alto and Greenwaste Yard.

Timeline
Valley Water’s procurement process is ongoing. A Request for Qualification (RFQ) was released , and eight statements of qualifications were submitted. Four teams were shortlisted. A Request for Proposals (RFP) and the draft EIR are anticipated to be released in late 2022. Valley Water’s preferred tentative timeline is as follows:

• Fall 2022: Decisions by City Council on the LATP site for the regional AWPF and Reverse Osmosis Concentrate management
• Winter 2023: Initiate Comprehensive Plan amendment and parcel subdivision (City) • Winter 2023: Final EIR (Valley Water) and approval of lease agreement (City) • Fall 2023: Selection and contract award (Valley Water) • 2023 – 2024: Design by selected entity with Valley Water ov ersight and Palo Alto site and design review
• 2025-2028: Construction and beginning of operations

Resource Impact
Significant City of Palo Alto staff resources are required in support of the Purified Water Project including staff from multiple departments including Public Works, Utilities, Administrative 3 Packet Pg. 16

City of Palo Alto Page 9

Services, Planning and Development Services, and the City Attorney’s Office. The project requires review from the City for the siting of the facility at the Former Los Altos Treatment Plant site; installing a new pump station at the Regional Water Quality Control Plant; installation of underground pipes to convey the effluent and reverse osmosis concentrate back and forth to the RWQ CP; and the negotiation with the Regulatory Agency to ensure that Palo Alto c an comply with future permit requirements. Staff is working with Valley Water on a Reimbursement Agreement with Valley Water to assist staff to comply with the added workload associated with this project.

Once Valley Water executes the portion of the Partnership Agreement to start treating effluent from the RWQCP; RWQCP will receive approximately $1 .0 million per year that will be divided by flow share amongst the cities that have committed their effluent , which are currently, Palo Alto, Mountain View, and Los Altos.

Funding for the current design work on the small salt removal facility at the Regional Water Quality Control Plant is provide d by Capital Improvement Program project WQ -19003, Advanced Water Purification Facility. The amounts currently budge ted are based on the 2017 conceptual design and will need to be adjusted.

Stakeholder Engagement
Palo Alto and Valley Water staff collaborate on outreach for the project. Valley Water s taff conducted virtual tours of the Silicon Valley Advanced Water Puri fication Center for several stakeholder groups in Palo Alto and surrounding area including the following:
• Oshman Family Jewish Community Center
• Palo Alto Fellowship Forum
• Interfaith Peninsula Climate Action Group
• CA League of Cities Peninsula Division (in-person)
• Public Library tours with Palo Alto and Mountain View • City of Palo Alto Public Works staff

Valley Water presented a Purified Water Project update at the September 2021 City of Palo Alto Parks and Recreation Committee meeting. Valley Water staff also held informational meetings with environmental stakeholders in Mountain View and Palo Alto, and faith -based organizations such as Spark Church, First Congregational Church, Peninsula Bible Church, Etz Chayim, First Congregational Church, University AM E Zion Church, and University Lutheran Church.

Additionally, Valley Water worked with the Santa Clara County Medical Association (SCCMA) to coauthor a series of articles on the benefits of Purified Water. In June, SCCMA released a special Water edition of their medical journal, “The Bulletin” highlighting Purified Water as a safe and drought -proof source of local water supply. The digital version of the journal can be accessed here.

3 Packet Pg. 17

City of Palo Alto Page 10

Palo Alto is working with LifeMoves on applying for Project HomeKey funding to locate an emergency homeless shelter project on a portion of the LATP Area C site. Palo Alto , Valley Water, and LifeMoves staff are collaborating to ensure compatibility of th ese neighboring projects.

In addition, Palo Alto and Valley Water have coordinated on engaging stakeholders on the environmental review process for the proposed Water Purification Project. Valley Water, acting as the “lead agency”, has determined that an EIR is required to satisfy the requirements of the California Environmental Quality Act (CEQA). The draft EIR will evaluate the proposed project’s environmental conditions, range of alternatives, potential environmental impacts associated with the proposed project implementation, and provide mitigation measures. The Notice of Preparation (NOP) was released on March 19, 2021 and the public scoping meeting was held on March 29, 2021. Outreach was conducted to encourage attendance at the scoping meeting via an outreach mailer, announcements at tours of the Silicon Valley Advanced Purification Center, and continued engagements with staff from the cities of San Jos e and Palo Alto to reach key stakeholder groups. Prior to the release of the NOP, Valley Water staf f and consultants met with the planning department staff of both Palo Alto and San Jos e as these cities will be the responsible agencies under CEQA. Currently, both City’s sites are being evaluated at equal level of details in the CEQA documentby Valley Water. The Valley Water Board directed staff to focus on Palo Alto at this time. In the future , Valley Water anticipates that an additional purification plant will be required to augment future drinking water supplies within Santa Clara County .

The next steps after the NOP will be development a full environmental impact report , which will focus on the old Los Altos Treatment Plant Site as the proposed site ; Palo Alto will be the responsible agency. Additional coordination will occur prior to release of the EIR.

Environmental Review
This study session is presented for information and discussion purposes only and is therefore not a project as defined by section 15378 of the CEQA Guidelines.

Valley Water, acting as lead agency for the proposed Water Pu rification Project, has determined that an EIR is required to satisfy the requirements of CEQA. Palo Alto will be the responsible party throughout the CEQA process. Valley Water is currently in the process of preparing the Draft EIR; which the City will review prior to its release. 3 Packet Pg. 18

City of Palo Alto (ID # 14591)
City Council Staff Report

Report Type: Study Session Meeting Date: 9/12/2022

City of Palo Alto Page 1
Summary Title: 70 Encina Avenue: PHZ Prescreening for 20 units Title: 70 Encina Avenue (22PLN -00198): Request for a Prescreening to Consider Rezoning the Subject Property From Community Commercial (CC) to Planned Community (PC/PHZ) to Allow Development of a Building With Approximately 20 Dwelling Units and 28 Parking Spaces. Environmental Assessment: Not a Project. The Formal Application Will be Subject to California Environmental Quality Act (CEQA) Review. Zoning District: CC (Community Commercial).

From: City Manager
Lead Department: Planning and Development Services

Recommendation
Staff recommends that Council conduct a prescreening and provide informal comments regarding the applicant’s request to rezone 70 Encina Ave from Community Commercial (CC) to a Planned Home Zoning (PHZ). 1 Comments provided during the prescreening process are not binding on the City nor the applicant.

Executive Summary
This prescreening is a request by the applicant to rezone the subject property, which is currently zoned Community Commercial (CC), to Planned Home Zoning (PHZ). 1 The project site consists of two parcels totaling 12,120 square feet (sf), and until recently, the site was used as a paved parking facility for Town and Country Village shopping center and is otherwise vacant.

The project includes construction of a 29,076 sf building (2.40:1 FAR) with 20 residential ownership/condominium units.

The project is located adjacent to Town and Country Village , on two parcels identified in the

1 Referred to in this report as "Planned Housing Zone" to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy. 4 Packet Pg. 19

City of Palo Alto Page 2
Zoning Code as being part of To wn & Count ry; however, these parcels are not under Town & Country’s ownership or control.

To be eligible for the Planned Community (PC) zoning process, a PHZ application must meet two initial qualifying criteria established by the City Council: 1) provide 20% of the total units as affordable housing selected from a prescribed menu of options, and 2) provide housing units that meet or exceed the demand generated by any net new jobs. In this case, no new jobs are proposed, as this project is 100% residential . The project would meet the 20% affordable requirement.

The project would require a formal rezoning application consistent with Palo Alto Municipal Code (PAMC), Zoning Regulations, Chapter 18.38 to allow for a Development Plan with increased height, and increased floor area ratio (FAR) compared to existing C C requirements.

The project would also require a n architectural review application and subdivision map application.

Background
On February 3, 2020, Council unanimously endorsed using Planned Housing Zoning (PHZ) for housing and mixed -use housing projects to help spur housing production. In exchange for deviation from certain standards as allowed under the rezoning, if approved by Council, the project must include at least 20% of the housing units as d eed restricted for lower income households.

In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Pre-screenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should refrain from forming firm opini ons supporting or opposing the project.

Project Description
A location map of the proposed site is included in Attachment A. The preliminary schematic drawings, included in Attachment D, are conceptual, as is appropriate at this stage of project consideration. As shown in these schematic drawings, the applicant is proposing a multi -family residential building approximately 29,076 sf with 20 housing units. The units would be a mix of one-bedroom units (12) and two -bedroom units (8). As part of the project, the two parcels would be merged, and the 70 Encina Avenue address would be formally assigned. Currently, the parcel address is unassigned.

The development would be four -stories of residential above a one -story podium level parking, 4 Packet Pg. 20

City of Palo Alto Page 3
with a proposed heigh t of 55 feet. In conformance with the Code, this does not include the height of the rooftop mechanical equipment , which is allowed an additional 15 feet in height .

This information was not included in the conceptual plans, except for a small projection tha t is likely the elevator tower.

The primary entrances for pedestrians and cars would be provided from Encina Ave. Parking is primarily proposed on the ground floor, with parking lifts that would descend to a subterranean vault. Proposed parking facilities include two “regular” stalls, four EV Accessible stalls, six tandem stalls (allowed for residential uses when assigned to the same unit), and 16 lift stalls, for a total of 28 parking spaces.

Surrounding Uses
Adjacent zoning and uses include the Town and Country Village Shopping Center and associated parking areas to the south, east, a nd west. To the north across Encina are CS zoned office buildings. The offices are two -story and tall one -story. The portion of Town and Count ry adjacent to the site is m ostly developed with one-story structures, though the building height increases to two stories towards the eastern side of the building.

Discussion
Staff will prepare a thorough analysis of the zoning and Comprehensive Plan compliance upon submittal of a formal application, if filed. A review of the conceptual plans, however, highlights key policy considerations associated with the applicant’s request.

Comprehensive Plan Compliance
The Comprehensive Plan designation is Community Commercial, which is def ined as: Larger shopping centers and districts that have a wider variety of goods and services than the neighborhood shopping areas. They rely on larger trade areas and include such uses as department stores, bookstores, furniture stores, toy stores, appar el shops, restaurants, theaters and non-retail services such as offices and banks. Examples include Stanford Shopping Center and Town & Country Village. Non-retail uses such as medical and dental offices may also locate in this designation. In some locatio ns, residential and mixed use projects may also locate in this category. Non -residential FARs range from 0.35 to 2.0. Consistent with the Comprehensive Plan’s encouragement of housing near transit centers, higher density multi - family housing may be allowed in specific locations.

Policy L2.4 states the intent to encourage housing near “ retail, employment, and transit, in a way that connects to and enhances existing neighborhoods ”. In addition to being near retail, this site is also near the Palo Alto CalTra in station (.5 miles), and VTA bus lines. In terms of employment centers, it is close to Stanford University and the Stanford University Medical Center, and Downtown Palo Alto.
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There are policy statements that relate to housing at the Town and Country Vi llage. Program L2.4.4 states: Assess non -residential development potential in the Community Commercial, Service Commercial and Downtown Commercial Districts (CC, CS and CD) and the Neighborhood Commercial District (CN), and convert non -retail commercial FA R to residential FAR, where appropriate. Conversion to residential capacity should not be considered in Town and Country Village.

Additionally, policies L-4.12, 13, and 14 are exclusive to Town and Country Village:
• Policy L-4.12 - Recognize and preserve Town and Country Village as an attractive retail center serving Palo Altans and residents of the wider region. Future development at this site should preserve its existing amenities, pedestrian scale and architectural character while also improving safe ac cess for bicyclists and pedestrians and increasing the amount of bicycle parking.
• Policy L-4.13 - In Town and Country Village, encourage a vibrant retail environment and urban greening.
• Policy L -4.14 - In Town and Country Village, encourage improvement of pedestrian, bicycle and auto circulation and landscaping improvements, including maintenance of existing oak trees and planting additional trees.

These policy statements seek to preserve or retain existing amenities and commercial floor area but the conce pt to convert portion of the surface parking lot to housing does not appear inconsistent with these Comprehensive Plan polices. Specifically, the proposal does not reduce commercial floor are or otherwise impede the vitality of the Town & County Village. A rguably the placement of a new residential structure at the subject location disrupts the availability of parking spaces and requires consideration of drive aisle re -alignment, but this also holds true if the independently owned parcel were developed with commercial uses. Moreover, adding housing to this location may actually prove beneficial to the Town & Country Village as it introduces new residents that could shop at the market and enjoy many of the other restaurants and retail stores within the immediate proximity.

Greater housing density could be achieved if the project incorporated adjacent Town & County Village parcels currently used for surface parking and still be generally consistent with the Comprehensive Plan though there would be a need to ac commodate and replace any displaced parking spaces.

City of Palo Alto Page 5
standards under the current CC zone district with the proposed project. The project is not located within the immediate vicinity of residential uses and therefore is not subjec t to the special standards outlined in PAMC Section 18.38.150.

While this property is not under Town & Count ry’s control, it is considered within Town & Country by the Zoning Code. PAMC Section 18.16.030(c) states "Town and Country Village Shopping Cente r" is defined as all properties zoned CC and bounded by El Camino Real, Embarcadero Road, Encina Avenue, and the Southern Pacific right-of-way.

In comparison to the existing zoning, the applicant is requesting that the new PHZ allow for increases in floor area and height, and an allowance for a 100% residential project . Specifically, the applicant is requesting a floor area ratio (FAR) of 2.4:1. In the CC zoning district, the FAR is determined by the use. Per PAMC 18.16.060(c), e xclusively residential uses are generally prohibited in the CN, CS, and CC zone districts, except on housing inventory sites identified in the Housing Element, and on CS and CN sites on El Camino Real and CC(2) sites . In accordinance with PAMC 18.16.060 (e), t he maximum floor area ratio for mixed use development for the Town and Country Village Shopping Center is limited to .50 to 1; provided that no more than .35 to 1 floor area shall be nonresidential and not more than .15 to 1 floor area shall be residential.

This would limit the site to 4,241 sf of commercial development and 1,817 sf of residential development. The allowed .5:1 FAR, (.15 for a residential component), is significantly less than the proposed 2.4:1 FAR.

The applicant is also requesting a height increase to 55 feet and proposes a majority of the roofline reach this limit, which exceeds the 50 foot height limit by 5 feet.

A preliminary analysis of the project with the recently adopted Objective Design Standards was also completed. Complying with the Objective Design Standards allows the Architectural Review component of the project to be streamlined, however the applicant may through the PHZ process, seek exceptions to individual standards. Most of the Objective Standards are met, with a couple notable exceptions:
• The building massing as proposed is not stepped back in the places where it is adjacent to a one story building. All buildings in the vicinity are one -story or two -stories. Per PAMC 18.24.050(b)(1)(B), when the height of the subject building is more than 20 f eet above the average height (i.e., average of low and high roof elevations) of an adjacent building, an upper floor step back shall start within two vertical feet of the height of the adjacent building. The step back shall be a minimum depth of six feet a long both the façade on the primary building frontage and the facing façade of the adjacent building, and the step shall occur for a minimum of 70% of each façade length. • A daylight plane would also be applicable in this context, which would further define the step-back (PAMC 18.24.050(b)(1)(C)).
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City of Palo Alto Page 6
• The façade is flat across the Encina frontage, and the Objective Design Standards require modulation. Per PAMC 18.24.050(b)(3), any building greater than 25 feet in height and 70 feet in length shall not have a co ntinuous façade plane greater than 70% of the façade length without an upper floor modulation, which can include bay windows.

Upper floor façade modulations shall be a minimum two feet in depth, which can be a recess or a projection. The proposed building includes recessed balconies, but those are not currently considered a true recess of the building. • A non-residential ground floor requires a minimum of 50% transparent glazing between four and ten feet in height from sidewalk or terrace grade (PAMC 18.24.060(c)(6)). • This project includes a ground-level parking facility, rather than an underground garage.

In order to do so, the applicant must propose commercial or habitable uses at the parking facility’s edge with a minimum depth of 20 feet along the street frontage (Encina Ave. side). The alternative i s to place the parking facilities underground (PAMC

18.24.060(c)(7)).
• The materials were not specified in the plan set, and therefore staff did not compare these to the Residential and Residential Mixed-use Material List.

Multi-Modal Access & Parking
The project is located close to high -frequency transit, including the Valley Transit Authority 22 bus line (El Camino and Embarcadero stop) and within walking distance of the Palo Alto Caltrain station (0.5 mile) . Stanford University’s Marguerite Shuttle also provides service from the Caltrain Station, as well as stops near El Camino and Encino Ave. and El Camino and Galvez St.

This project has not yet been analyzed for consistency with the City’s Bicycle and Ped estrian Transportation Plan and other transportation policies such as Council’s Local Transportation Impact Analysis Policy adopted on June 15, 2019 (CMR 11256). This analysis would be conducted as a part of any formal application and reviewed by the Office of Transportation.

The proposed project would add a new curb cut along Encina Avenue, approximately 45 feet from the existing entrance to the Town and Country Village parking lot , which has not been reviewed by the Office of Transportation at this time . The trash bins would be accessed from the Encina Avenue driveway.

Parking
The project would include 28 vehicle parking spaces (includ ing two “regular” stalls, four EV Accessible stalls, six tandem stalls, and 16 lift stalls) on the ground floor, with th e lifts descending into below grade vaults. This meets the Code required minimum off-street parking spaces. Six of the residential spaces would be provided in a tandem configuration, in conformance with parking regulations in PAMC Section 18.54.020(d). No loading space is required for residential use. It should be considered that associated activi ties to the residential 4 Packet Pg. 24

City of Palo Alto Page 7
use, such as drop -off/pick-up for rideshare, loading for residents moving, or guests visiting residents may impact the adjacent Town & Coun try Village parking lots. This should be considered as part of any formal application.

Bicycle parking is currently shown within the ground level parking garage, with access from within the garage and outside of the building in the utility corridor. The proposed bike parking area holds 20 bikes, as required by PAMC 18.52.040, and meets or can be designed to meet the requirements of a Restricted -Access Bicycle Enclosure as defined in PAMC 18.54.060 (a)(2)(B).

Two visitor bicycle racks would also be available in the front yard near the garage entrance.

Inclusionary Requirement and Jobs Housing Imbalance
The intent of limit ing PC projects to residential and residential mixed -use is to address the job/housing imbalance. PHZ projects are required to provide mor e housing than jobs on site. As this is a 100% residential project, no new jobs would be created.

The project would also provide 20% of the units at Below Market Rate in accordance with Council’s requirements for projects seeking to rezone using the PHZ p rocess. The applicant’s representative anticipates the affordable units would allocate as follows, consistent with the City Council’s endorsed formula:2

Income
Level
Area Median
Income
Number of Units
Based on a 20-
Unit Project
Percent of
Income
Restricted Units
Below Market Rate Units Very Low -
Income
50% and below 1 5%
Low-
Income
51% - 80% 1 5%
Moderate-
Income
81% - 120% 1 5%
Workforce Housing Units Above
Moderate-
Income
121% - 140% 1 5%
Market Rate Units Above
Moderate-
Income
141% and above 16 80%
Total 20 Units 100%

2 City Council staff report establishing PHZ Affordable Housing Obligation:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11478.pdf?t=43675.41
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City of Palo Alto Page 8
Policy Implications
Pre-screenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Therefore, informal comments from Councilmembers would not impact poli cy. That said, there is interest among other home builders and property owners to learn of the Council’s initial reaction to the subject request, which may influence the filing of future prescreening requests.

Resource Impact
The prescreening and processi ng of a formal application, if filed, are services paid for by fees from the applicant. Additionally, impact fees are charged on the project to account for impacts the project has on public services and infrastructure.

Timeline
Following the prescreening review, the applicant will consider Council’s comments and determine how they want to proceed. Any formal application to rezone the property to a PHZ would be subject to the Planning and Transportation Commission (PTC), Architectural Review Board (pending compliance with the Objective Design Standards), and Council’s purview.

Stakeholder Engagement
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on September 2, 2022 , which is 10 days in advance of the meeting. Postcard mailing occurred on August 31, 2022 which is 12 days in advance of the meeting.

As of the writing of this report no project-related public comments were received.

Environmental Review
The prescreening is a preliminary review process in which Councilmembers may provide comment, but no formal action wil l be taken. Therefore, no review under the California Environmental Quality Action (CEQA) is required at this time. A full review in accordance with CEQA would be initiated with the formal filing of a development application.

Attachments:

Attachment4.a: Attachment A: Location Map (PDF)
Attachment4.b: Attachment B: Zoning Comparison Table (DOCX) Attachment4.c: Attachment C: Applicant's Project Description (PDF) Attachment4.d: Attachment D - Project Plans (DOCX)
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120-33-003
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3-010
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120-28-097
120-28-098
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120-33-001
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120-33-036
120-33-006
120-34-003
120-33-041
120-33-042
120-33-043
120-33-046
ALMA
STR
EET

EL CAMINO REAL

EMBARCADERO ROAD

URBAN L
ANE

ENCINA AVENUE

ENCINA AVENUE
Bldg 1
Bldg 2
Bldg 3
Bldg 4
Bld
903
905
907
921
925
917
90 901
15 33
98 855
909
81 87
51 75
63 29
841
44 This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Assessment Parcel Palo Alto
Assessment Parcel Palo Alto
Assessment Parcel Outside Palo Alto
abc Road Centerline Small Text (TC)
Curb Face (RF)
Pavement Edge (RF)
Address Label Points (AP)
Current Features
0' 87'
Attachment A
70 Encina
Location Map

CITY OF PALO ALTO
I
N
C

O R P O R A
T
E
D

CAL I FORN IA
P a l o A l t o
T h e C i t y o f
A
P
R
I L 1 6 1
8 9
4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto efoley2, 2022-08-18 13:32:14
Assessor Parcels (\\cc-maps\Encompass\Admin\Meta\View.mdb)

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ATTACHMENT B

ZONING COMPARISON TABLE
70 Encina, 22PLN-00198

Table 1: COMPARISON WITH CHAPTER 18.16 (CC DISTRICT)
Mixed-use and Residential Development Standards
Note: 100% Residential not typically allowed in CC District Regulation Required Existing Proposed
Minimum Site Area, width and
depth No Requirement
12,118 sf
100 ft wide, 121 ft
deep
12,118 sf
100 ft wide, 121 ft
deep
Minimum Front Yard (Encina
Ave)

No Requirement Vacant/parking lot 5 feet
Rear Yard
10 feet 0 feet
Side Yard
No Requirement 9 feet left
0 feet right
Min. yard for lot lines abutting
or opposite residential
districts or residential PC
districts
Not Applicable Not Applicable
Build-to-lines (1)

50% of frontage built
to setback on Encina
Ave.

Complies
Max. Site Coverage 50%
6,060 sf 86.5%
10,483 sf
Max. Building Height 50 feet 55 feet, 5 stories
Max. Floor Area Ratio (FAR) See note (e)
.15 to 1 for residential 29,076 sf

2.40 to 1
Daylight Plane for lot lines
abutting one or more
residential zone districts other
than an RM-40 or PC Zone
Not applicable
Landscape Open Space 30% 31.43%
Useable Open Space 150 sf per unit (Private
and/or Common)
Average balcony size
60 sf per unit
Average common
space 890 sf per unit

(e) CC District Shopping Center Floor Area Ratio Regulations (1) The maximum floor area ratio for the Town and Country Village Shopping Center shall be .35 to 1; and office uses at said shopping center shall be limited to 15% of the floor area of the shopping center existing as of August 1, 1989. Hotel use shall not be included as part of the .35 to 1 maximum floor area ratio, but shall not exceed an additional .25 to 1 floor area ratio, for a maximum site floor area ratio of .60 to 1.
(2) The maximum floor area ratio for mixed use development for the Town and Country Village Shopping Center shall be limited to .50 to 1; provided that no more than .35 to 1 floor area shall be nonresidential, consistent with part (1) above, and not more than .15 to 1 floor area shall be residential.

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(3) Stanford Shopping Center shall not be permitted to add more than 80,000 square feet of floor area to the total amount of floor area of the shopping center existing as of June 14, 1996, 1,332,362 square feet, for a total square footage not to exceed 1,412,362. Any hotel or mixed use development for the Stanford Shopping Center shall only be included if approved as part of a Development Agreement for the site.

Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) for Residential
Type Required Existing Proposed
Vehicle Parking 1 per 1-bedroom unit
2 per 2-bedroom or
larger unit At least one
space per unit must be
covered

Tandem parking
allowed for any unit
requiring two spaces
(one tandem space per
unit, associated directly
with another parking
space for the same
unit, up to a maximum
of 25% of total required
spaces for any project
with more than four (4)
units)

28 stalls required
Approximately 50
parking spaces
28 parking stalls
provided

2 per 2-bedroom
1 per 1-bedroom

6 tandem stalls
16 lift stalls
2 EV Accessible Stalls
2 EV Accessible Van
Stalls
Bicycle Parking 1 long term space per
unit

1 guest space per 10
units
20 long term

2 guest/short term
Loading Space None required None provided

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May 20th, 2022 Jodie Gerhardt City of Palo Alto Planning & Development Services Department 285 Hamilton St, 1st Floor Palo Alto, CA 94301 DEVELOPMENT PROGRAM STATEMENT RE: 70 ENCINA AVE - PHZ PRE-SCREENING SUBMITTAL Dear Ms. Gerhardt, On behalf of our client Storm Land LLC., Hayes Group Architects submits this development program Statement pursuant to PAMC 18.38.070 for a proposed multi-family residential development at 70 Encina Avenue in Palo Alto. Application of PHZ designation for this project is necessary for the following reasons: a. The underlying Zoning designation of CC would only allow for an FAR of 0.6:1. This limited development potential severely hinders the number of housing units that can be built. Coupled with the high price of land it also further challenges the inclusion of affordable housing. Under these regulations the site would be limited to a maximum of 4 residential units atop fully or semi-underground parking. Application of PHZ regulations would allow for roughly a five-fold increase in unit count as illustrated in the attached plans. The proposed residential design is supported with the surroundings as there are adjacent planned community and hospital buildings of similar height. b. The proposed uses in this project are limited to private residential condominiums, including support and amenity spaces related to residential use. Support and amenity spaces include usable open space, parking, mechanical and storage spaces, shared circulation, utilities, and trash & recycling. c. The nature of all proposed uses is that of residential living and associated activities. Each residential unit will contain its’ own private kitchen and bathing facilities, with all parking behind screened or solid walls. Portions of the site are designed as usable outdoor space for the condominium users and their guests to use. d. Below is a schedule of unit types and sizes and anticipated sales prices. Please note that sales prices are based on an estimated sales price of $1,250 per occupied square foot, not including common areas such as parking and utilities etc.

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unit description BR# unit size (avg) quantity sales price (avg) 2 BEDROOM 2BR 1,320 SF 8 $1,650,000 1 BEDROOM 1BR 1,035 SF 12 $1,293,750 TOTAL: 20 Note: Sales prices shown above are for market rate units. 20% of units will be sold or rented as BMR units. Pricing for Below Market Rate units shall be established by the Director of Planning & Development Services in accordance with the City’s website. If you have any questions regarding the contents of this letter or the accompanying plans, please feel free to contact me by phone or email. Jeff Galbraith Principal Hayes Group Architects Inc. (650) 223-4026 [email protected] Sincerely,

4.c
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Attachment D

Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Directions to review Project plans online:

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “70 Encina Avenue” and click the address link

3. On this project specific webpage you will find a link to the project plans and other important information

Direct Link to Project Webpage:
https://www.cityofpaloalto.org/News-Articles/Planning-and-Development-Services/70-Encina- Avenue

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City of Palo Alto (ID # 14594)
City Council Staff Report

Report Type: Study Session Meeting Date: 9/12/2022

City of Palo Alto Page 1
Summary Title: 4345 El Camino Real: PHZ Prescreening
Title: 4333 and 4345 El Camino Real [22PLN -00210]: Request by Toll Bros. for Prescreening of Their Proposal to Rezone the Subject Properties from CS to PHZ to Allow Redevelop the Two Sites with 12 Dwell ing Units and 55 Dwelling Units, Respectively. Environmental Assessment: Not a Project.

From: City Manager
Lead Department: Planning and Development Services

Recommendation
Staff recommends that Council conduct a prescreening and provide informal comment s regarding the applicant’s request to rezone the two parcel s at 4333/4335 and 4345 El Camino Real from Service Commercial (CS) to a Planned Home Zoning (PHZ). 1 Comments provided during the prescreening process are not binding on the City or the applicant.

Executive Summary
This prescreening is a request by the applicant to rezone two properties (project site) currently zoned Service Commercial (CS) to “Planned Home Zoning (PHZ).”1 The project includes:
• a proposed 12 -unit multi -family housing development on a 17,426 square foot (sf) parcel located at 4333/4335 El Camino Real (Site A). The proposed 12-unit project would replace 6,565 sf of retail and personal service space (Peninsula Piano Brokers and Massage Envy) and would be comprised of six townhome uni ts and six accessory dwelling units (ADUs) in two proposed buildings.

• a proposed 55 -unit multi-family housing development on a 43,035-sf parcel located at 4345 El Camino Real (Site B). The proposed 55-unit project would replace an 18,128 -sf hotel (Country Inn Motel) with 55 residential condominiums (for-sale housing units).

City of Palo Alto Page 2

The project site is located along El Camino Real within the proximity of major bus transit stops and one mile from the San Antonio Caltrain Station. It is also within the vicinity of numerous retail stores; these are located primarily within Mountain View and Los Altos. Nearby parks include Del Medio Park in Mountain View and Monroe Park in Palo Alto (both within 0.5 miles).

This prescreening application responds to the City Counci l’s expressed interest in learning from home builders what it takes to create more housing opportunities in Palo Alto. Utilizing the Planned Community (PC) zoning process, a PHZ application must meet two initial qualifying criteria established by the City Council: 1) provide 20% of the total units as affordable housing selected from a prescribed menu of options, and 2) provide housing units that meet or exceed the demand generated by any net new jobs.

The project would require a formal application consiste nt with Palo Alto Municipal Code (PAMC), Zoning Regulations, Chapter 18.38 to allow for a Development Plan with increased height, increased floor area ratio (FAR), reduced open space, and reduced setbacks compared to existing CS requirements. The project w ould require a zoning map change to Planned Community for the properties.

Background
In February 2020, Council unanimously endorsed using Planned Housing Zoning (PHZ) for housing and mixed -use housing projects to help spur housing production. In exchang e for deviation from certain standards as allowed under the rezoning, if approved by Council, the project must include at least 20% of the housing units as deed restricted for lower-income households. Moreover, the number of housing units must offset the n umber of net new commercial jobs that are generated by the project.

In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to the submittal of a formal application. Pre-screenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should ref rain from forming firm opinions supporting or opposing the project.

Project Description
A location map of the proposed site is included in Attachment A. The preliminary schematic drawings, included in Attachment C, are conceptual, as is appropriate at thi s stage of project consideration. As shown in these schematic drawings, the applicant is proposing a 12 -unit multi-family housing development on Site A and a 55-unit multi-family housing development on Site B.
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Site A
The proposed 12-unit development at Site A would replace approximately 6,600 sf of retail and personal service space (Peninsula Piano Brokers and Massage Envy) . The housing units would be contained in two buildings with a total floor area ratio ( FAR) of 1.02:1. The applicant would propose a c ondominium subdivision to subdivide the lot into six total “air parcels” for condominium purposes. Each condominium parcel would have one townhome and one ADU.

Both buildings would be 44 feet tall ; the deck of the rooftop open space area for each townhome unit would be set at approximately 34 feet. Pedestrian entrances to the building fronting El Camino Real would be provided from El Camino Real to both the townhome and the ADU. For the building without El Camino Real frontage, pedestrian access would be provided from Cesano Court along pathways within the rear setback. Vehicular access would be provided between the buildings from a single driveway curb cut on Cesano Court. Two parking spaces would be provided for each townhome unit. No parking spaces would be provided for the ADUs.

Site B
The proposed 55-unit development at Site B would replace an existing 18,348 sf hotel (Country Inn Motel) with a multi -family residential condominium building with one level of underground parking. The project would inclu de a mix of one-bedroom (12 units), two -bedroom (35 units); and three -bedroom units (8 units). The building would have a total floor area ratio (FAR) of

2.4:1. Staff notes that the zoning table on the plans references mixed -use floor area; however, the app licant has stated, and the project description indicates, that the proposal does not include commercial uses.

The proposed building would be five stories tall, with a proposed height of 66 feet, eight inches to the top of the stairs , and the proposed can opy covers over the rooftop open space. The height to the top of the parapet would be 59 feet, eight inches. In conformance with the Code, this does not include the height of the rooftop mechanical equipment , including the elevator overrun; the elevator ho using is allowed an additional 15 feet in height above the maximum allowable height. The elevator overruns appear to be similar in height to the stairwell.

Pedestrian entrances to the building would be provided from the corner of Cesano Court and El Camino Real. The building would include one level of below-grade parking. Vehicular access to the parking garage would be provided from the rear of the lot via Cesano Court, allowing for the removal of the curb cut along El Camino Real. The below -grade parking structure would include 71 parking stalls. Another 39 parking s talls would be provided within the building at ground level, for a total of 110 parking spaces where 98 parking spaces are required.

Surrounding Uses
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Adjacent land uses are primarily located within other jurisdictions, including Los Altos to the west across El Camino Real and Mountain View to the south. Immediately adjacent to 4345 El Camino Real within Mountain View is a recently constructed 65 -foot housing development with 211 units (2700 West El Camino Real) with ground floor commercial space . Across El Camino Real within Los Altos is the 3 -story Courtyard by Marriot Hotel and a planned five -story ( 63- foot) multi -family housing development . To the North within Palo Alto is the 4 -story Homewood Suites by Hilton Hotel located within the CS Zone District. To the west (rear) of the parcels is an existing 3-story office development.

Discussion
Staff will prepare a thorough analysis of the zoning and Comprehensive Plan compliance upon submittal of a formal application if filed. A review of the conceptual plans, however, highlights key concessions that the applicant is requesting.

Zoning Compliance
For projects rezoning to a PHZ, Council has the authority to set the parameters for most development standards, which would be reflected in the tailored ordinance for the new PHZ District. However, for informational purposes, Attachment B compares the development standards under the current CS zone district with the proposed project. The project is n ot located within the immediate vicinity of residential uses within Palo Alto and therefore is not subject to the special standards outlined in PAMC Section 18.38.150. Although there are residential uses within Mountain View and Palo Alto, these uses are of higher density than the proposed project and of a similar height.

Site A
In comparison to the existing zoning, the applicant is requesting that the new PHZ allow for:
• An increase in floor area (approximately 1:1 for Site A; 2.4:1 for Site B) • A waiver of the retail preservation requirements (no retail where a minimum of 1,500 sf is required to be replaced for sites proposing high density housing [30 dwelling units per acre or more])
• An exception to the requirements in PAMC Chapter 18.09 to allow more tha n one ADU on a site of a proposed multi-family development

The applicant is requesting a floor area ratio of 1.02 where 0.6 is allowed per code (or 1.5 is allowed in accordance with the housing incentive program) for housing projects. However, staff notes that the new private street has not been deducted from the lot area as required per the code; therefore, the project may further exceed the total FAR allowance. The plans do not provide information to confirm how this would change the identified floor area ratio.

The proposed project complies with the 50-foot height limit, providing a 44-foot building. The 5 Packet Pg. 36

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plans indicate that the project complies with the required setbacks, lot coverage, and other development standards as well.

Site B
In comparison to the existing zoning, the applicant is requesting that the new PHZ allow for:
• an increase in floor area (2.4:1 where 0.6:1 is allowed [or 1.5 to 1 under the housing incentive program])
• an increase in lot coverage (67% where 50% is allowed) • a waiver of the retail preservation requirements (none where 1,500 sf is required) • an increase in height limit of 59’ 6” for a majority of the building as well as 66’ 8” for roofdeck features, elevator overrun, and stairs to roodeck.

The majority of the roofline would exce ed the 50-foot height limit by 9 feet six inches. The elevator, stairs and trellis features on the rooftop would exceed the height at approximately 66 feet, 8 inches. The CS zoning regulations do not set a maximum density for sites along El Camino Real; th erefore the project would not conflict with the current code with respect to density. The proposed density is 55 dwelling units per acre. Comparatively, the density of the adjacent residential development in Mountain View is 95 dwelling units per acre. The proposed development in Los Altos across El Camino Real is 72 dwelling units per acre.

Tree Removal
The project appears to require removal of several mature trees, p articularly on Site B. These liquidamber and camphor trees may be protected, depending on the diameter of the tree trunk. Generally, f or protected trees, t he applicant would be required to comply with the requirements under 8.10.050(d) of the municipal code, which only allow removal of protected trees in certain circumstances. However, Council ultimately has the authority as part of the PHZ process to require retention or allow removal of any of these trees. C anopy replacement would be required for any trees removed in accordance with Chapter 8.10.055 of the code. Staff notes that it could be d ifficult to retain some of these trees while also modifying the site to provide a new sidewalk along Cesano Court. Retention of some of the trees along El Camino Real would likely require greater setbacks for the building. Council’s feedback on the applica nt’s site plan, particularly with respect to removal of these trees is encouraged.

Retail Preservation
The current 6,565 sf of retail and retail-like uses (retail, personal services) on Site A and 18,348 sf of retail-like uses (hotel) at Site B are subject to the retail preservation requirements outlined in PAMC 18.40.180. Pursuant to PAMC Section 18.40.180(c)(4)(C), a high density (30 or more dwelling units per acre) project located within the CS Zone District, but not within the ground floor or retail co mbining district, shall only be required to replace 1,500 sf of existing retail or retail-like use. The project qualifies for this partial exemption. The applicant, however, is not 5 Packet Pg. 37

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proposing to replace an y retail or retail-like uses on either site. Council has the authority to set the parameters for most development standards, which would be reflected in the tailored ordinance for the new PHZ District. Therefore, Council, at their discretion could choose to waive the need for retail space on one or both of these sites as part of the ordinance developed in response to a formal application.

Housing Inventory Site
A portion of the project site (Site A) is identified as a housing inventory site with a maximum yield of 12 units and a realistic capacity of 8 unit s. The project would add 1 2 housing units on this parcel, exceeding the identified realistic capacity by 4 units with the requested code modifications.

Multi-Modal Access & Parking
The project is located close to high -frequency transit, including the Vall ey Transit Authority 22 bus line (with a northbound stop at El Camino Real and Cesano Court and a southbound stop on El Camino Real and Los Altos Avenue). It is located within one mile (walking distance) of the San Antonio Caltrain station.

Further information is needed regarding the on -site circulation and vehicle trips generated to determine whether the project is consistent with the City’s Bicycle and Pedestrian Transportation Plan and other transportation policies such as Council’s Local Transportation Impact Analysis Policy adopted on June 15, 2019 (CMR 11256). This information would be required as part of any formal application.

Site A
Similar to the existing conditions, t he proposed development at Site A would provide a single ingress/egress from Ce sano Court. The design does not include on -site space for trash pick -up; therefore, it is assumed that residents would bring their refuse out to Cesano Court or El Camino Real for pick -up. This would require signage to limit parking along a portion of the street frontage during trash pick -up hours and may require improvements to the public right - of-way to provide for effective roll -out and pick -up. It is unclear how ADU residents would dispose of their refuse and recycling.

Site A includes 15 parking spac es; two within a garage for each townhome , and three guest spaces. No parking is provided for the ADUs , consistent with the typical standards for ADUs under 18.09 of the code. However, the site exceeds the required parking by 3 spaces, which could be provided for the ADU tenants. Bicycle parking is not shown on the plans; however, the plans indicate an intent to provide six bicycle parking spaces (one for each unit) and one guest space. The locations and details of these bicycle parking spaces would be requ ired as part of any formal application.

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Site B
The proposed development at Site B would eliminate the vehicular curb cut s along El Camino Real and Cesano Court, both of which provide ingress and egress to the site. A single entrance/exit point is proposed at the rear of the site from Cesano Court . If a formal project is filed, a permit would be required from Caltrans to eliminate existing curb cuts along El Camino Real. The design does not include on -site space for trash pick -up; therefore, it is assumed that the applicant intends to bring the trash bins out to El Camino Real or Cesano Court for pick-up.

This would require signage to limit parking along a portion of the street frontage during trash pick-up hours and may require improvements to the public r ight-of-way to provide for effective roll-out and pick-up.

The project would include 39 parking space s at grade and 71 spaces below grade within an on - site parking garage for a total of 110 spaces . This exceeds the 98 required spaces. A car-sized loading space is not provided and is required in accordance with 18. 52.040. One of the additional provided spaces could be designated as a loading space for taxicabs and similar services. 55 bicycle parking spaces would be provided in a ground floor b icycle parking room as shown on the plans. Although guest bicycle parking is not shown, the plans indicate an intent to provide the required six short -term bicycle parking spaces. The locations and details of these bicycle parking spaces would be required as part of any formal application.

Adjacent to Site B a pedestrian/bicycle path is provided through the site at 2700 W El Camino Real in Mountain View but dead ends at the City boundary. Staff would recommend that the applicant complete this bicycle/pedestrian connec tion to Cesano Court to improve multi -modal transportation. Along Cesano Court, the sidewal k should be continued between the existing sidewalk and the proposed end of the path to improve the pedestrian connection out to El Camino Real. The plans appear to show this, but civil plans showing cross sections of the street and sidewalks would be needed as part of any formal application.

Inclusionary Requirement and Jobs/Housing Imbalance
The site is currently zoned to allow commercial or mixed -uses. There is an existing building located at 4333/4335 El Camino that includes existing retail and personal services uses (Peninsular Piano Brokers and Massage Envy) and existing hotel use (Countryside Inn) located at 4345 El Camino Real. These existing buildings would b e demolished and replaced with multi- family housing . This would lead to a 6,656 sf decrease in retail and personal service space as well as 18,128 sf of hotel. The project would result in a net reduction in jobs (approximately 47 jobs) along with a net increase in housing units (67 housing units).

The project would provide 20% of the units at Below Market Rate in accordance with Council’s requirements for projects seeking to rezone using the PHZ process. The applicant has not specified for staff which opti on is proposed, but intends to provide 20% on site and therefore would comply with Option 1 or 2 that was endorsed by Council on September 21, 2020 (CMR:
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11478).2 However, Council has indicated that this base requirement of the PHZ is intended to allow for minor increases in comparison to the housing incentive program. The proposal includes increases in height approximately 10 -15 feet above 50 -foot height limit, increases in floor area on the 4345 El Camino site (2.4 where 1.5 is allowed under the housing i nventive program), elimination of retail and retail -like uses without replacement , and increases in lot coverage. These requests may warrant greater community benefits, including more BMR units, greater affordability of BMR units, and/or other benefits. The proposal would improve the jobs/housing imbalance by providing housing units in an amount that surpasses the jobs created in the retail use at the site.

Policy Implications
Pre-screenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Therefore, informal comments from Councilmembers would not impart policy. That said, Council’s feedback on key requests such as the height limit, floor area, and retail preservation will help to inform whether there is interest in pursuing a rezoning of the property.

As discussed above, Council has indicated that the 20% inclusionary BMR housing is a requirement for rezoning through the PHZ process; however, Council has indicated its expectation that this would allow for minor increases in comparison to the housing incentive program allowances. Councilmembers are encouraged to provide feedback on the requested modifications and anticipated and possible community benefits.

Resource Impact
The prescreening and processing of an application, if filed, are services paid for by fees from the applicant. Additionally, impact fees are charged on the project to account for the impacts the project has on public services and infrastructure.

The project co uld impact local tax revenues due to t he removal of the retail and hotel uses at the site, which generate local sales tax revenue and transit occupancy tax revenue for the City.

The loss of these spaces would result in a net loss of revenue on the order of $100,000- $200,0003, mostly from transit occupancy tax revenue generated by the hotel. Sales tax

2 The September 21, 2020 City Council Report can be found here:
https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11478.pdf?t=43675.41. Action minutes for the hearing can be found here:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2020/september-21-2020-city-council-meeting-action-minutes.pdf 3 Due to the pandemic, retail and retail-like uses, and particularly hotel uses, have varied between fiscal year 2019 and fiscal year 2022. This range reflects possible revenue based on pre-pandemic revenue and fiscal year 2022 revenue. Generally, revenue has improved, trending toward recovery, but is still lower than fiscal year 2019 levels. 5 Packet Pg. 40

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revenue for the City in fiscal year 2022 was roughly $17 million and transit occupancy tax was roughly $32.5 million.

There would be a 1% additional property tax assessed on the increase in value of the property from the new development. T he City would receive approximately 9.4% of that additional property tax. The difference in value between the existing property and the value of the property with the proposed improvements is unknown.

Timeline
Following the prescreening review, the applicant will consider Council’s comments and determine how they want to proceed. Any formal application to rezone the property to a PHZ would be subject to Planning and Transpor tation Commission (PTC), Architectural Review Board, and Council review.

Stakeholder Engagement
The Palo Alto Municipal Code requires notice of this public hearing to be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on September 2, 2022, which is 10 days in advance of the meeting. Postcard mailing occurred on August 31, 2022, which is 12 days in advance of the meeting.

As of the writing of this report, the City received comments on the project from three members of the public and from a planner in the City of Mountain View . One nearby resident and a planner and the planner from the Ci ty of Mountain View reached out to staff to request that any future project at this site complete the bicycle/pedestrian connection that was constructed on 2700 West El Camino Real as part of the Mountain View Apartments project. Two o ther members of the p ublic asked whether the project could be rearranged to preserve existing mature trees on the site . One person asked for replacement of existing trees with comparable trees for any trees not to be preserved and asked the City to consider requiring the developers to include more units for low and medium-income families.

Environmental Review
The prescreening is a preliminary review process in which Councilmembers may provide comments, but no formal action will be taken. Therefore, no review under the Califor nia Environmental Quality Action (CEQA) is required at this time. A full review in accordance with CEQA would be initiated with the formal filing of a development application.

Attachments:

Attachment5.a: Attachment A: Location Map (PDF)
Attachment5.b: Attachment B: Zoning Comparison Table (DOCX) Attachment5.c: Attachment C: Project Plans (DOCX)
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278.4'

31.1'
104.9'

32.5'
123.9'

39.3'
103.3'

36.8'

61.9'
105.8'

45.3'
116.0'
278.4'

72.3'

20.0'

45.8'
161.5'

56.6'
172.5'
141.2'
101.6'

20.0'
103.5'

49.2'
205.8'

17.3'19.1'.3'.1'16.2'
172.5'
.1'.0'

11.4'

19.6'

17.4'

4.6'
205.8'
122.7'
142.8'

53.8'
142.8'
105.2'
120.5'
12 120.5'

50.0'
120.0'

29.9'
165.3'

30.6'
161.8'

50.0'

0.0'

37.0'118.4'
139.8' 122.7'

15.3'

40.3'
135.0'

98.6'

5.4'
145.9'

37.0'
145.9'

86.3'
115.1'
118.4'

59.7'
101.9'

42.8'

31.1'
131.0' 32.0'

55.0'

16.7'

45.5'

38.3'

10.5'
101.9'
11 98.0'
110.8

70.7'

60.2'

20.0'

79.6'

60.2'
137.6 6'
145.5'37.0'
122.7'
137.
141.2'
234.5'
267.7'
402.3'
168.4'
314.4'
4380
43824339
4341
4343
440
4333
4335
4345
4329
124
120
118
116
116A
114
112
4337
4368
43 4378
4366
411
413
417
419
410
412
416
418
411
413
417
419
410
412
416
418
411
420
421
4372
4374
4376
4335
43334331
494
4350
4328
410
412
416
418
413
417
419

CESANO COURT

EL CAMINO REAL

MILLER COUR
T

CESANO COURT

RYAN LANE

COLE COURT

BRASSINGA COURT

GENE COURT
PC-3036
CS
CS
RM-20
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Project Site
0' 112'
Attachment A:

Location Map
4333/4335 El Camino
Real and
4345 El Camino Real

CITY OF PALO ALTO
I
N
C

O R P O R A
T
E
D

CAL I FORN IA
P a l o A l t o
T h e C i t y o f
A
P
R
I L 1 6 1
8 9
4 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto chodgki, 2022-08-23 11:11:48
(\\cc-maps\Encompass\Admin\Personal\Planning.mdb)

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ATTACHMENT B

ZONING COMPARISON TABLE
4333/4335 and 4345 El Camino Real, 22PLN-00210

Table 1: COMPARISON WITH CHAPTER 18.16 (CS DISTRICT)
Mixed-Use Development Standards

Regulation

Required
Existing Proposed
Site A Site B Site A (4333/4335
El Camino Real)
Site B (4345 El
Camino Real)
Minimum Site Area,
width and depth
None

0.4 acres
(17,426 sf)
1 acre
(43,035 sf)
No change No Change
Minimum Front Yard

0-10 feet to
create an 8-12
foot effective
sidewalk width
(1), (2), (8)

15-foot setback
for residential
units
~0 feet ~11 feet 15 feet 5 feet (creates
effective 13 foot
sidewalk on ECR
matching the
Mountain View
Apartments)
Rear Yard

10 feet for
residential;
none for
commercial
~0 feet ~7 feet 10 feet 20 feet
Interior Side Yard

None ~0 feet ~0 feet 10 feet 6-10 feet
Street Side Yard 5 feet 86 feet ~24 feet 5 feet 5 feet
Min. yard for lot lines
abutting or opposite
residential districts or
residential PC districts
10 feet (2) Not
Applicable
Not
Applicable
Not Applicable Not Applicable
Build-to-lines

50% of frontage
built to setback
on El Camino
Real
33% of side
street built to
setback (7)
56% El Camino
Real; 60% Cesano
Court
80% El Camino Real;
80% Cesano Court
Special Setback 24 feet – see
Chapter 20.08 &
zoning maps
Not
Applicable
Not
Applicable
Not Applicable Not Applicable
Max. Site Coverage 50%

unknown

unknown 40% (6,970 sf) 67% (28,833 sf)

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Max. Building Height 50 ft or
35 ft within 150
ft. of a
residential
district (other
than an RM-40
or PC zone)
abutting or
located within
50 feet of the
site
Single
story
One to
two story
44 feet 59 feet, 8 inches to
top of parapet

66 feet, 8 inches to
top of stairs and
rooftop trellis
Daylight Plane for lot
lines abutting one or
more residential zone
districts other than an
RM-40 or PC Zone
None (6) Not Applicable Not Applicable Not Applicable
Residential Density 30 DU/AC
except sites on
El Camino Real
have no
maximum
Not Applicable
(currently exclusively
commercial)
30 DU/AC 55 DU/AC
Max. Floor Area Ratio
(FAR)

0.6:1 residential
(10,455 sf for
Site A; 25,821 sf
for Site B); 0.4:1
non-residential
(total of 1.0:1
for mixed-use
projects)

18.18.060(e)

2.0:1 for hotels

18.18.060(d)
.38:1
(6,565 sf)

.42:1
(18,128)

1.02:1 (17,892 sf) 2.36:1 (101,927 sf)
Minimum Mixed-use
Ground Floor
Commercial FAR
1,500 sf of retail
required when
removing retail
or retail-like
uses and
replacing with
high density
housing
Not applicable (existing
use is commercial with
~6500 sf of
retail/personal services
on Site A and ~18,000 sf
of hotel use on site B).

None None
(1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard.
(2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line.. (6) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question. (7) 25 foot driveway access permitted regardless of frontage, build-to requirement does not apply to CC district. (8) A 12 foot sidewalk width is required along El Camino Real frontage (10) In the CC(2) zone and on CN and CS zoned sites on El Camino Real, there shall be no minimum mixed use ground floor commercial FAR for a residential project, except to the extent that the retail preservation requirements of Section 18.40.180 or the retail shopping (R) combining district (Chapter 18.30(A)) applies.

18.16.080 Performance Standards. All development in the CS district shall comply with the performance

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criteria outlined in Chapter 18.23 of the Zoning Ordinance, including all mixed use development

18.16.090 Context-Based Design Criteria. As further described in a separate attachment, development in a commercial district shall be responsible to its context and compatible with adjacent development, and shall promote the establishment of pedestrian oriented design.

Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) for Residential Use*
Type Required Existing Proposed
Site A Site B Site A Site B
Vehicle Parking 1 per micro unit
1 per studio unit
1 per 1-bedroom unit
2 per 2-bedroom or
larger unit At least one
space per unit must be
covered
ADU: No parking
required

Site A: 12 spaces
Site B: 91 spaces
unknown unknown 15
vehicular
spaces
110
vehicular
spaces
Bicycle Parking 1 per unit (100% LT); 1
space for each 10 units
of guest bike parking
(100% ST)
unknown unknown 6 long-
term
spaces; 1
guest
space
55 long-
term
spaces; 6
short
term
spaces
Loading Space 1 car loading space
required for multi-
family use
unknown 1 car
loading
space
1 car
loading
space

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Attachment C

Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Councilmembers for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Directions to review Project plans online:

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “4333 and 4345 El Camino Real” and click the address link

3. On this project specific webpage you will find a link to the project plans and other important information

Direct Link to Project Webpage:
https://www.cityofpaloalto.org/News-Articles/Planning-and-Development-Services/4345-El-Camino- Real

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City of Palo Alto (ID # 14727)
Office of the City Clerk
City Council CAO Report

Meeting Date: 9/12/2022 Report Type: Consent Calendar

Title: Approve Minutes from the August 8, 2022 , August 10, 2022, August 15, 2022, and the August 22, 2022 City Council
Meetings
From: Lesley Milton, City Clerk

Staff recommends Council to review and approve the minutes as presented.

ATTACHMENTS:
• Attachment6.a: 20220808amCCsm (PDF)
• Attachment6.b: 20220810amCCsm (PDF)
• Attachment6.c: 20220815amCCsm (PDF)
• Attachment6.d: 20220822amCCsm (PDF)
6 Packet Pg. 47

CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 4 ends

Special Meeting
August 8, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:14 P.M.

Present In Person: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka Present Virtually: None

Absent: None

Special Orders of the Day

1. Appreciation for State Senator Josh Becker for Securing $2 million for Newell Bridge Replacement Project

2. Select Applicants to Interview for the Human Relations Commission MOTION: Council Member Cormack moved, seconded by Council Member Kou to interview all applicants for the HRC position.

MOTION PASSED: 7-0.

AA1. Sibling City Update from Mayor John Hamilton, Bloomington, Indiana

Agenda Changes, Additions and Deletions

Public Comment

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DRAFT ACTION MINUTES

Page 2 of 4 ends

(Sp.) City Council Meeting
Draft Summary Minutes August 8, 2022
Consent Calendar

MOTION: Council Membe r Cormack moved, seconded by Mayor Burt to approve Agenda Item Numbers 3-4.

3. Adoption Of Resolution 10061 Establishing FY 2023 Property Tax Levy for General Obligation Bonds (Measure N Libraries)

4. Approval of the Rail Committee Charter and Workplan for 2022-23 MOTION PASSED: 7-0

City Manager Comments

Action Items

5. Approval of Appointment and Employment Agreement with Andrew Binder as Chief of Police
MOTION: Mayor Burt moved, seconded by Council Member DuBois to approve appointment of Andrew Biner as Chief of Police and his employment agreement as presented.

MOTION PASSED 6-1 Tanaka no

6. Adoption of an Ordinance Approving the Police Department's Military Equipment Use Policy Under AB 481 Continued to a future meeting

AA2. Adoption of Resolutions: (1) Placing a Business Tax on the November 2022 Ballot; (2) Placing a Measure Affirming the Natural Gas Utility Transfer on the November 2022 Ballot; and (3) Establishing Advisory Spending Guidelines for Business Tax Proceeds (6:45 PM – 8:15 PM)

MOITION SPLIT FOR THE PURPOSE OF VOTING

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DRAFT ACTION MINUTES

Page 3 of 4 ends

(Sp.) City Council Meeting
Draft Summary Minutes August 8, 2022
MOTION: Mayor Burt moved, seconded by Council Member Filseth to:

1. Adopt Resolution 10064, to submit a measure to the voters at the general municipal election on November 8, 2022 (Attachment B) and adopt resolution 10063 establishing advisory spending guidelines regarding use of business tax proceeds if passed by voters (Attachment C)
MOTION Passes: 5-2, Cormack, Tanaka no

MOTION: Mayor Burt moved, seconded by Council Member Filseth to:

2. Continue this discussion to August 10 with the following direction:

A. Bring final documents for the measure to affirm the natural gas utility transfer.

MOTION Passes: 6-1 DuBois No

MOTION: Mayor Burt moved, seconded by Council Member Filseth to:

2.Continue this discussion to August 10 with the following direction:

B. Authorize the ad hoc to continue to discussions with the business coalition to reach agreement on alternative tax structure.

MOTION Passes: 4-3 Stone, Kou, DuBois no

AA3. PUBLIC HEARING / QUASI -JUDICIAL. 1033 Amarillo Ave [22PLN -00016]: Request for a Preliminary Parcel Map With Exceptions to Subdivide a 20,787 Square Foot R -1 Property Into Two (2) Lots, Where Lot 1 Will be 10,668.50 Square Feet and Lot 2 Will be 10,118.77 Square Feet. Exception is for Minimum lot Width and Maximum lot Size. Zoning District R-
1 Single Family Residential.

MOTION: Council Member DuBois moved, seconded by Mayor Burt to approve the Record of Land Use Action based on findings and subject to conditions of approval. Prior to approval of a parcel map, the applicant shall receive approval for any planning entitlement as required by the municipal code that includes a new single -family home, ADU and JADU on each subdivided lot.

MOTION PASSED: 5-2, Kou, Stone no

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DRAFT ACTION MINUTES

Page 4 of 4 ends

(Sp.) City Council Meeting
Draft Summary Minutes August 8, 2022

7. Discuss and Provide Comments on the City's Draft Comment letter to the California High Speed Rail Authority (CHSRA) and Authorize the Mayor to Send a Comment Letter to the CHSRA on the Final Environmental Impact Report/Environmen tal Impact Statement (EIR/EIS) for the California High Speed Rail segment between San Francisco and San Jose, Which Traverses Palo Alto.

MOTION: Council Member Cormack moved, seconded by Council Member DuBois to:
1) Authorize the Mayor to sign the City’s comment letter, incorporating Council’s requested revisions (if any), and to submit the letter to the CHSRA prior to its consideration for approval of the proposed project and certification of the Final EIR/EIS.

MOTION PASSED: 7-0

8. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2022 Conference, to be held September 7-9 in Long Beach, CA ACTION: Continued to August 15, 2022

Council Member Questions, Comments and Announcements

Adjournment: The meeting was adjourned at 10:32 P.M.

ATTEST: APPROVED:

____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b) . Summary minutes ( sense) are prepared in accordance with PAMC Section

2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 2 ends

Special Meeting
August 10, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 6:00 P.M.

Present In person: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka Present Virtually: None

Absent: None

Agenda Changes, Additions and Deletions
Mayor Burt announced that item 1 will be taken before item AA1.

Closed Session

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section 54957(b) Titles: City Manager, City Attorney, City Clerk

MOTION: Council Member Filseth moved, seconded by Council Member Cormack to go into Closed Session.

MOTION PASSED: 7-0
Council went into Closed Session at 6:08 P.M.

Council returned from Closed Session at 8:20 P.M.

Mayor Burt announced there was no reportable action.

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DRAFT ACTION MINUTES

Page 2 of 2 ends

(Sp.) City Council Meeting
Draft Action Minutes: 08/10/2022
Action Items
AA1. November 2022 Ballot Measures: (1) Repeal of a Resolution Adopted on August 8, 2022, and Adoption of a Revised Resolution Placing a Business Tax on the November 2022 Ballot; (2) Adoption of a Resolution Placing a Measure Affirming the Natural G as Utility Transfer on the November 2022 Ballot
MOTION: Mayor Burt moved, seconded by Council Member Cormack to

1. Repeal Resolution 10062, adopted on Monday August 8, 2022, which placed a business tax on the November 8, 2022 at a rate of 11 cents per square foot, capped at $1 million per business, raising approximately $16.5 million annually.

2. Adopt the Resolution (Attachment A) calling an election for November 8, 2022 for submittal to the qualified electors of the City a measure amending Title 2 of the Municipal Code to add Chapter 2.37 to establish a tax on businesses operating in the City of Palo Alto, which includes a revised business tax at a rate of 7 ½ cents per square foot of occupied space, capped at $500,000 per business, with annual 2.5% increases in the tax rate and cap, raising approximately $9.6 million annually.

3. Adopt the Resolution (Attachment B) calling an election for November 8, 2022 for the submittal to the qualified electors of the City a measure affirming the City’s natural gas utility general fund transfer.

4. Direct staff to return to Council with a revised Advisory Spending Resolution that includes additional language on fiscal reporting and transparency, to be placed on the Consent agenda in August.

MOTION PASSED: 6-1, Tanaka no

Council Member Questions, Comments and Announcements
Adjournment: The meeting was adjourned at 9:51 P.M.

ATTEST: APPROVED:

____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b) . Summary minutes ( sense) are prepared in accordance with PAMC Section

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CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 3 ends

Special Meeting
August 15, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M.

Present In Person: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka Present Virtually: None

Absent: None
Special Orders of the Day

1. allcove Palo Alto Presentation

Study Session

2. 800-808/814 San Antonio Road [22PLN -00129]. Request for Pre -Screening of a Proposal by TS 800 SA LCC to Rezone the Subject Property from Commercial Services (CS) to Planned Home Zoning and to Redevelop the Site with 75 Condominium Units in a Five-Story Structure.

Environmental Assessment: Not a Project. The Formal Application W ill be Subject to California Environmental Quality Act (CEQA) Review.

ACTION: No action taken

3. 616 Ramona Street [22PLN -00146]: Request for Council prescreening for an applicant proposed text amendment to Chapter 18.18.120 to allow a change to the building envelope when replacing non- complying floor area in the Commercial Downtown. Environmental Assessment: Not a Project. The Formal Application Will be Subject to California Environmental Quality Act (CEQA) Review. Zoning District: CD -C(P) Community Commercial Downtown with a Pedestrian Combining District.

ACTION: No action taken

Agenda Changes, Additions and Deletions

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DRAFT ACTION MINUTES

Page 2 of 3 ends

(Sp.) City Council Meeting
Draft Summary Minutes 8/15/2022
Public Comment

Consent Calendar
MOTION: Council Member Cormack moved, seconded by Mayor Burt to approve Agenda Item Numbers 4-8.

4. Approve Minutes from the August 1, 2022 City Council Meeting

5. Approval of Contract Number C22184896 with Schaaf and Wheeler in the Amount of $253,636 for Design Services for the Embarcadero Trash Capture Device Installation Project, Capital Improvement Program Project SD-22002

6. Accept the City Auditor's Quarterly Status Report for January - March 2022

7. Approval of the Office of the City Auditor's Nonprofit Agreement Risk Management Review

8. Adopt RESOLUTION 10066 Approving a Summ ary Easement Vacation Adjacent to 1499 Edgewood Drive
MOTION PASSED: 7-0

City Manager Comments
Ed Shikada, City Manager

Action Items

9. Project Homekey: Authorize City Manager to Execute a State Standard Agreement in the Event of Homekey Award; Adopt a resolution Extending the Declaration of Emergency Shelter Crisis; and Receive an Update on Project Homekey Status and Provide Potential Direction to Staff
MOTION: Council Member Stone moved, seconded by Council Member Filseth to • Authorize staff to execute a State Standard Agreement with the State of California for a project Homekey Award and
• Adopt Resolution 10067 Extending th e Declaration of Emergency Shelter Crisis; and Receive an Update on Project Homekey Status and Provide Potential Direction to Staff MOTION PASSED: 6-1 Tanaka, no

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DRAFT ACTION MINUTES

Page 3 of 3 ends

(Sp.) City Council Meeting
Draft Summary Minutes 8/15/2022

10. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2022 Conference, to be held September 7-9 in Long Beach, CA
MOTION: Council Member DuBois moved, seconded by Mayor Burt to appoint Vice Mayor Kou as the voting delegate and Council Member Cormack and Mayor Burt as alternates for the 2022 Annual Conference.

MOTION PASSED: 7-0

Council Member Questions, Comments and Announcements

Adjournment: The meeting was adjourned at 8:49 P.M.

ATTEST: APPROVED:

____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section

2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 4 ends

Special Meeting
August 22, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M.

Present: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka Present Virtually: None

Absent: None

Special Orders of the Day

1. Interviews for the Human Relations Commission

Agenda Changes, Additions and Deletions
Agenda was amended prior to deadline adding items AA1, AA2 and AA3.

Public Comment

Consent Calendar
Council Members Tanaka and Kou registered a no vote on Agenda Item Number 4.

Council Member Tanaka registered a no vote on Agenda Item Number AA1.

MOTION: Council Member Cormack moved, seconded by Council Member DuBois to approve the Consent Agenda Items 2 -4, AA1 and AA2.

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DRAFT ACTION MINUTES

Page 2 of 4 ends

(Sp.) City Council Meeting
Draft Action Minutes: 08/22/2022

2. Review and Approve the Williamson Act Contract Renewals Within Palo Alto City Limits (2022)

3. 2515 El Camino Real: Ratify a BMR Regulatory Agreement Permitting Rental of Two Units at Below Market Rates and Approve and Auth orize the City Manager to Execute and Record Amendment No. 1 to the Regulatory Agreement. Environmental Assessment:

Exempt from CEQA Pursuant to Guidelines Section 15601(b)(3).

4. 1985 Louis Road (First Congregational Church of Palo Alto) [22PLN -00159]: Appeal of a Director’s Decision Approving a Safe Parking Program Permit to Allow Overnight Parking of up to Four (4) Vehicles at the Subject Property. Environmental Assessment: Exemp t.

Zoning District: R-1 (Single-Family Residential).

AA1. Repeal of Resolution Adopted on August 8, 2022 and Adoption of a Revised Resolution 10068 Establishing Advisory Spending Guidelines for Business Tax Proceeds AA2. Approval of the City Position for the 2022 Cal Cities Annual Conference Resolution

MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION PASSED Items 2, 3, AA2: 7-0
MOTION PASSED Item 4: 5-2 Kou, Tanaka No
MOTION PASSED Item AA1: 6-1 Tanaka no

City Manager Comments

Action Items

5. Consider a Recommendation to Review and Endorse the 2023 -31 Draft Housing Element Goals, Policies and Programs and Updated Sites Suitability Inventory and Analysis; Provide Direction on Possible Land Use Policy Changes to Promote Housing in Certain General Manufacturing (GM) and Research, Office and Limited Manufacturing (ROLM) Districts; and, Receive an Update on the Housing Element Project Schedule.

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DRAFT ACTION MINUTES

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(Sp.) City Council Meeting
Draft Action Minutes: 08/22/2022

MOTION: Council Member Filseth moved, seconded by Council Member Tanaka to approve an increase in density for up to 90 units per acre for all units in the GM and ROLM Districts and with appropriate transitions adjacent to the R1 zone, as referenced in PowerPoint presentation.

MOTION PASSED: 5-1-1, Kou no, Cormack recused

MOTION: Council Member DuBois moved, seconded by Mayor Burt to modify programs in the proposed housing element as follows:

1. Program 1.6 Stanford Lands
b. Eliminate 27 University as a housing opportunity site and the corresponding program 1.6D
c. Eliminate the reference to 75 feet in height for program 1.6B d. Eliminate the reference to 65 feet for section 1.6C
MOTION PASSES: 5-1-1, Tanaka no, Cormack recused

MOTION: Council Member DuBois moved, seconded by Mayor Burt to modify programs in the proposed housing element as follows:

1. Program 1.6 Stanford Lands
a. Evaluate creation of new neighborhood along Foothill expressway for 7th Cycle Housing Element

2. Program 4.2 Housing Preservation
a. Add a program to evaluate amending the muni code to restrict short term rentals, particularly where owner is not residing in pro perty, to insure housing stock is used for long term rentals

3. Program 6.4A Homelessness Programs
a. Add another program to include Commercial lots in the safe parking program. b. Remove the reference to Cubberley but retain language to for support services for participants of a safe parking program

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DRAFT ACTION MINUTES

Page 4 of 4 ends

(Sp.) City Council Meeting
Draft Action Minutes: 08/22/2022

4. Program 3.3A
a. Modify reference to “religious institutions located in R1 district” to clarify that we will evaluate affordable housing with less dense incentives in R1.

5. Add a program to review the PTOD development s tandards for greater housing production

6. Evaluate the feasibility of potential regulations to incentivize housing units to be used for the purpose of housing
MOTION PASSES: 6-1, Cormack recused

AA3. City Auditor Vacancy: Council Direction on Next Steps MOTION: Council Member Cormack moved, seconded by Mayor Burt to request up to three individuals to interview from Baker Tilly to act as an interim Auditor, and the Council Appointed Officers C ommittee to meet to address the next steps for filling the Auditor position for the medium to long term
MOTION PASSED: 7-0

Council Member Questions, Comments and Announcements

Adjournment: The meeting was adjourned at 11:38 P.M.

ATTEST: APPROVED:

____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section

2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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City of Palo Alto (ID # 13766)
City Council Staff Report

Meeting Date: 9/12/2022 Report Type: Consent Calendar

City of Palo Alto Page 1

Title: Approval of Amendment Number 1 to Contract Number C20177684 with SCA for Street Sweeping Services, for Modification and Increase of Contract by $1,080,674 to Include Prevailing Wages for a Revised Not to Exceed amount of $6,688,906 for the Remaining Three Years of a Five Year Contract; and Approval of Budget Amendment in the Refuse Fund From: City Manager
Lead Department: Public Works

Recommendation
Staff recommends that Council:

1. Approve and authorize the City Manager or their designee to execute Amendment No. 1 to Contract No. C20177684 with Sweeping Corporation of America ( SCA), formerly Contract Sweeping Services (CSS), for street sweeping services; which includes a. The r emoval of Task 2 (Debris Management ) from the Scope of Services for contract years 3 through 5; and
b. Increasing the total not -to-exceed compensation by $1,080,674, from $5,608,232 to a new total not -to-exceed compensation amount of $6,688,906; and

2. Amend (by a 2/3 majority) the Fiscal Year 202 3 Budget Appropriation for the Refuse Fund by:
a. Increasing the Public Works appropriation for Contract Services by $83,158; and b. Decreasing the Rate Stabilization Reserve by $83,158.

Background
The Public Works Department’s Public Services Division is responsible for maintaining cleanliness throughout various City-owned public places, including sweeping over 17,000 curb miles of streets annually. Street sweeping is a key maintenance task that includes removing leaves, trash, and particulate debris such as metal particles from street surfaces and gutters, preventing these materials from entering our storm drain system and the San Francisco Bay, as required by State and Federal laws.

On April 20, 20 20, following a Request for Proposals (RFP) competitive solicitation process, Council approved a five-year contract with Contract Sweeping Services (CSS) for the provision of services through April 25, 2025 (Staff Report ID# 11012). Contract Sweeping Services (CSS) has 7 Packet Pg. 61

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since been acquired by SCA of CA, LLC, and the City has approved an assignment agreement assigning the contract to SCA of CA, LLC. The current five -year contract provides street sweeping services for all residential and light commercial areas throughout the City. The contract includes debris management provisions that address removal and disposal of debris.

The debris removal provisions allow SCA to temporarily place debris on City streets during leaf season or when approved by the City. The debris disposal provisions direct SCA to haul street sweeping debris t o the S unnyvale Materials Recovery and Transfer Station (SMaRT Station) located in Sunnyvale for processing . The cost of hauling the debris is built into the contract under Task 2.

On May 24, 2021, City Council approved a new contract for solid waste pro cessing with GreenWaste Recovery (GWR) (Staff Report ID# 11632) that began on January 1, 2022. Through the GWR contrac t, staff incorporated the processing of yard trimmings (from City crew work including sweeping debris) previously taken to the SMaRT Station to be processed at the Zanker Road Resource Recovery Operation and Land fill (Zanker), with the City Collector, Gree nWaste of Palo Alto (GWPA), transporting the material rather than SCA. The cost of processing the debris is allocated in the City’s Refuse Fund within the solid waste processing expenses.

Discussion
Since January 1, 2022, GW PA has transported street sweeping debris to Zanker for processing.

Staff has evaluated t he transition in transporting the material between the two companies and found it to be successful, resulting in no major issues. This amendment to the SCA contract removes Task 2 from the contract, which means that SCA will no longer be permitted to haul debris. Responsibilities associated with Task 2 include the hauling of debris and the placement of debris on City streets during leaf season. Staff has evaluated the placement of debris on City streets for the last two years of the contract and this practice has yet to be utilized.

Additionally, storage of sweeping debris on City streets has negative impacts including reduced level of cleanliness, unsightliness, and potential flooding concerns. Sweeping debris is currently taken to a bunker located at the Municipal Services Center (MSC) yard prior to being transferred to the processing center ; this practice will continue with SCA. This expense is being removed from the contract and will only be reflected in the GreenWaste Recovery contract.

Lastly, the Department of Industrial Relations (DIR), the State agency that oversees prevailing wage laws, issue d a determination last fall that street sweeping work is subject to prevailing wages. As DIR previously held that such work was not subject to prevailing wages, this contract did not previously require them. In order to comply with DIR’s new directive, staff recommends amending the contract to include this requirement using prevailing wage rates specifie d by the DIR. The new curb mile rate is $ 74.27, an increase from $44.01 . The difference in additional contract expenses for Year 3 (April 26, 2022 - April 25, 2023), d ue to this prevailing wa ge increase and reduction of debris transportation expense , is $349,224, resulting in a funding need of $83,158 for Year 3. The contract had unspent budget of $266,066, as shown on Table 1, from the first two years which will be used in Year 3 to help cover the increased cost.

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Table 1: Unspent Budget within Contract

Current Budget
(Tasks 1-4) & Additional Services
Actuals
(Tasks 1-4)
Unspent
Budget
Contract Year 1 $1,035,432 $828,752 $112,550
Contract Year 2 $1,076,849 $825,438 $153,516
Total $2,112,281 $1,654,190 $266,066

Resource Impact
The increase to this contract is not currently funded. To support this unbudgeted expense, an appropriation increase of $ 83,158 for contract services in the Refuse Fund is re commended, offset by a $ 83,158 decrease of the Refuse Fund Rate Stabilization Reserve . Subsequent years of the contract are subject to appropriation of funds through the annual budget process . The Refuse Fund Rate Stabilization Reserve (RSR) balance for Fiscal Year 2023 , including this recommended use of $83,158, will have sufficient funds . The RSR is projected to be greater than the recommended 20 percent of sales metric RSR guideline.

Table 2 shows the compensation for the amendment by contract year. Table 3 shows a comparison of the original contract against the amendment by contract ye ar, as well as the difference and additional funding needed. Additional Services funding has been removed for the remaining three years to help offset the increase in contract expense. The funding from the first two years will be sufficient for the remainder of the contract.

Table 2: Compensation for Amendment by Contract Year
Year Services (Tasks 1-4) Additional Services Subtotals Contract Year 1 $941,302 $94,130 $1,035,432
Contract Year 2 $978,954 $97,895 $1,076,849
Contract Year 3 $1,469,147 $0 $1,469,147
Contract Year 4 $1,524,838 $0 $1,524,838
Contract Year 5 $1,582,640 $0 $1,582,640
Subtotals/Totals $6,496,881 $192,025 $6,688,906

Table 3: Comparison of Original and Amended Contract

Current Budget
(Tasks 1-4) &
Additional Services
Proposed Budget
(Tasks 1-4) &
Additional Services Difference
Unspent
Budget
Additional
Budget
Needed
Contract Year 1 $1,035,432 $1,035,432 $0
Contract Year 2 $1,076,849 $1,076,849 $0
Contract Year 3 $1,119,923 $1,469,147 $349,224 $266,066 $83,158 Contract Year 4 $1,164,720 $1,524,838 $360,118 $360,118 7 Packet Pg. 63

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Contract Year 5 $1,211,308 $1,582,640 $371,332 $371,332 Subtotals/Totals $5,608,232 $6,688,906 $1,080,674 $266,066 $814,608

Stakeholder Engagement
This contract amendment is for a continuation of existing street sweeping services. Work groups within Public Works were consulted regarding the coordination of services provided under multiple contracts.

Policy Implications
This recommendation does not represent any change to existing City policies.

Environmental Review
The recommended action is CEQA exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3).
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City of Palo Alto (ID # 14144)
City Council Staff Report

Report Type: Consent Calendar Meeting Date: 9/12/2022

City of Palo Alto Page 1
Summary Title: CDBG - Approve Amendment to Citizen Participation Plan (CPP)
Title: Adoption of the Amended Community Development Block Grant (CDBG) Citizen Participation Plan
From: City Manager
Lead Department: Planning and Development Services

Recommendation:

Staff and Human Relations Commission (HRC) recommend the City Council adopt the amended Community Development Block Grant Citizen Participation Plan (Attachment A) required for the expenditure of funds from the U.S. Department of Housing and Urban Development.

Executive Summary:

The City of Palo Alto receives funds annually from the U.S. Department of Housing and Urban Development (HUD) as an entitlement city under the Community Development Block Grant (CDBG) program. As a jurisdiction that recei ves federal funds from HUD, the City is required to have a Citizen Participation Plan (CPP). Staff is proposing minor amendments to the existing CPP, which was last updated in 2020. The proposed changes are focused on clarifying the review procedures for t he primary tasks associated with the administration of the CDBG program. The proposed amendments spell out which CDBG tasks require review by the HRC and or the City Council. On May 24, 2022, the HRC reviewed the proposed CPP amendments and voted to support the changes.

Background:

HUD requires CDBG recipient agencies to prepare and implement a CPP that provides adequate opportunity for citizens to participate in an advisory role in the planning, implementation, and assessment of the CDBG program. The procedures outlined in the CPP appl y to review of the following CDBG program documents and associated actions:

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• Consolidated Plan (Con Plan): a strategic five -year plan that identifies priority housing and community development needs and sets forth a strategy to address those needs. • Annual Action Plan (AAP): an annual report to identify specific projects to be funded to implement the goals and objectives identified in the Consolidated Plan; typically submitted to HUD in May.
• Comprehensive Annual Performance and Evaluation Report (CAPER): an annual report prepared at the end of each program year to review and report on the goals and objectives achieved with the annual grant allocations; typically submitted to HUD in September.
• Substantial Amendments : modifications to the AAP and Con Plan that meet the threshold of substantial change.
• Citizen Participation Plan (CPP): plan that provides for and encourages citizens to participate in the development of the City’s Consolidated Plan, Annual Action Plan, substantial amendments to the Consolidated Plan or Annual Action Plan, and the performance reports (CAPER).
• Assessment of Fair Housing (AFH): an analysis of fair housing issues for the City and region that results in goals that the program participant sets forth t o achieve over the program participant’s coming Consolidated Plan planning cycle.

The existing 2020 CPP details the roles and responsibilities of the City Council, public, staff, and the HRC. The City Council sets policy and priorities and approves the overall CDBG grant allocations.

Human Relations Commission Review
The HRC reviewed the proposed CPP amendments on May 24, 2022 and voted unanimously 5-0 to recommend Council approval. There was limited discussion of the item by the HRC and there were no public speakers. The HRC included in their motion that the Ad Hoc Subcommitt ee receive staff updates on the CDBG funding allocations and a copy of the final funding allocation plan.

Discussion:

The existing CPP provides overall direction but lacks specificity ; the proposed CPP amendments provide clarification on the review proce dures for the above-mentioned CDBG tasks. For all significant actions for the CDBG program, the City Council is the approving body, while the HRC has a role in reviewing and providing recommendations to Council. Table 1 below provides a summary of the recommended review procedures.

Table 1: Summary of Recommended Review Procedure
Task Required
Comment
HRC Public
Hearing
City Council
Meeting
Proposed Change
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At a minimum, the CDBG program would have three public hearings annually: two HRC meetings for the AAP and CAPER, and one City Council meeting for the AAP. These meetings cover the standard/minimum CDBG program actions that are completed every year. In addition to the AAP and CAPER, the City often has additional public hearings associated with other tas ks listed above.

Proposed Updates
The existing CPP specifies that the City Council conducts two public hearings per fiscal year at different stages of the program year. Staff recommends revising the Council review to one public hearing (i.e., Action Ite m) for the review and approval of the AAP (for the CDBG allocations) prior to the end of the program year, June 30th. This one formal City Council meeting is consistent with past practices over the last seven years.

The existing CPP specifies that the HR C will conduct at least one public hearing to review and comment on the proposed CDBG funding allocations for the AAP. Staff recommends revising the HRC review to two public hearings. The first one would be for the annual review and comment on the proposed CDBG funding allocations for the AAP (early Spring) . The second public hearing would be held at the end of the program year to comment on the CAPER (late Summer). These two meetings with the HRC reflect past practices from the last seven-plus years.

For the other required documents (i.e., Substantial Amendments, Con Plan, CPP, and AFH), the reviews are not changing from what is currently specified in the CPP. The clarifications Period
Annual Action Plan (AAP) 30 days X Action None
Consolidated Annual
Performance and Evaluation
Report (CAPER)
15 days X Informational
Report
None, affirming
Informational
Report for
Council
Substantial Amendments 30 days - Consent Council Consent review instead of
Action
Consolidated Plan (Con Plan) 30 days X Action None
Assessment of Fair Housing
(AFH)/ Analysis of Impediments
(AI)
30 days X Action None
Citizen Participation Plan (CPP) 15 days X Consent Council Consent Review instead
of Action
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proposed are for the placement of items on the Council agenda. For streamlini ng purposes, the Consent agenda is recommended by staff for the Substantial Amendments and CPP. This placement continues to provide the public the opportunity to speak to the item on the agenda and provide comments, and Council can elect to pull the item o ff Consent, if it seeks additional discussion.

The draft CPP is provided as Attachment A and includes underlines for added text and strikeouts for deletions. The current CPP with no markups can be viewed online for reference.

Policy Implications:

The proposed CPP amendments do not make any substantive changes to the City’s e xisting public engagement policies. Staff is also beginning to address recommendations from the City Auditor from a recent audit regarding engagements with non - profit entities and public private partnerships. Staff will monitor any recommended policy chan ges from that evaluation and review in the context of this plan as well.

Timeline:

The CPP will be effective immediately following adoption by City Council.

Stakeholder Engagement:

An advertisement was published in The Daily Post on May 9 , 2022 and on August 26, 2022 , announcing the availability of the draft CPP for public review and comment. The draft CPP was also reposted on the City’s website for public review and comment on August 26 , 2022 .

Additionally, the newspaper notices provided details of the May HRC and August City Council hearings. As noted above, the HRC also reviewed and discussed the amended CPP during a public hearing on May 24,2022 . At the time of this report, staff did not receive any public comments on the proposed CPP.

Environmental Review:

The proposed amendment to the CPP does not constitute a “project” under the California Environmental Quality Act (CEQA) and is therefore exempt from environmental review.

Attachments:

Attachment8.a: Attachment A: Draft Citizen Participation Plan, CDBG (PDF) 8 Packet Pg. 68

COMMUNITY DEVELOPMENT BLOCK

GRANT (CDBG)

CITIZEN PARTICIPATION PLAN

Administered by Planning and Development Services
Adopted by City Council on November 20, 2020 DATE 2022

DRAFT – July 29, 2022

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Citizen Participation Plan – November 2020 DATE 2022
2 Introduction

Pursuant to the requirements of 24 CFR 91.105, the City of Palo Alto hereby issues the following plan to provide for and encourage citizens to participate in the development of the City’s Consolidated Plan, Annual Action Plan, any substantial amendments to the Consolidated Plan or Annual Action Plan, and the Performance reports (CAPER).

Community Development Block Grant (CDBG) Program
The City of Palo Alto receives an annual allocation of Community Development Block Grant (CDBG) funds directly from the U.S. Department of Housing and Urban Development (HUD). The CDBG program addresses the creation of viable urban communities by providing decent housing, a suitable living environment, and the ability to expand economic opportunities, principally for persons of low and moderate income.

Consolidated Plan, Annual Action Plan, and Performance Report In order to receive CDBG funding, Title I of the National Affordable Housing Act mandates the preparation of a strategic five-year Consolidated Plan that identifies priority housing and community development needs and sets forth a strategy to address those needs. An Annual Action Plan is prepared annually to identify specific projects to be funded to implement the goals and objectives identified in the Consolidated Plan. A Comprehensive Annual Performance and Evaluation Report (CAPER) is prepared at the end of each program year to evaluate and report on the goals and objectives achieved with the annual grant allocations.

Assessment of Fair Housing (AFH)/Analysis of Impediments (AI) to Fair Housing Choice The preparation of a n AFH/AI is required every five (5) years. The AFH/AI is an analysis of fair housing issues in a program participant’s jurisdiction and region that results in goals that the program participant sets forth to achieve over the program participant’s coming Consolidated Plan planning cycle. If required by HUD, the City must prepare, adopt and submit its initial AFH for HUD review no later than 270 calendar days prior to the start of the following program year.

Subsequent AFHs must be submitted 195 days prior to the start of the fo llowing program year.

This schedule will allow the City to consider any fair housing issues when developing the City’s Consolidated Plan.

Citizen Participation Objectives
A primary objective of the Housing and Community Development Act of 1987 is the provision of adequate opportunities for citizens, non-profit organizations, and other interested parties to review and comment on the planning, implementation, and assessment of the CDBG program.

It is the intention of the City of Palo Alto to adopt and follow a detailed Citizen Participation Plan in order to encourage meaningful citizen involvement, public examination, and appraisal of the process, as well as to enhance program accountability.

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3 The Citizen Participation Plan includes the following objectives:

1. To adhere to the provisions of the Community Development Act of 1987, as amended, and all other federal regulations.

2. To encourage the participation of citizens in the planning, implementation, and assessment of the CDBG program, esp ecially those of low and very low income, members of minority groups, residents of areas where funds will be expended, persons with limited English proficiency, the elderly, individuals with disabilities, and other neighborhood, non-profit or civic groups.

3. To make information about the CDBG program and process available to the public through reasonable and timely access to information including publications in local newspapers, public hearings, public meetings, the City’s website, and the provision of technical assistance.

Citizen Participation Plan

The sections below describe the roles and responsibilities of the City Council, public, staff, and Human Relations CommissionCommittee. Additionally, there are process-related clarifications for substantial amendments, anti -displacement requirements, and state of emergency conditions.

Part 1: The City Council

1. The City Council sets policy, priorities, and approves the overall Community Development Block Grant allocations.

2. The City Council will conduct a minimum of one two public hearing per fiscal year for the purpose of obtaining citizens’ views and formulating or responding to proposals and questions. The public hearings will be held at different stages of the program year. The purpose of the public hearing is to address community development and housing needs, development of proposed activities, proposed strategies and actions for affirmatively furthering fair housing, and program performance.

3. All public hearings will be held at times and locations convenient to potential and actual program beneficiaries, with reasonable accommodations for persons with disabilities.

Generally, public hearings will be held at City Hall in the evenings because the facility is centrally located, accessible by public transportation, and has disabled access.

4. Translation services will be provided when a significant number of non -English speaking residents can be reasonably expected to participate, or when a reasonable request for such an accommodation is made.

5. Actions of the City Council will direct the implementation of CDBG funded projects.

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4 Part 2. The General Public

1. The general public is encouraged to participate in the various stages of the CDBG program by attending and commenting at the noticed public hearings. They are also encouraged to express their views and comments directly to the City’s CDBG Coordinator in the Planning and Development Services department.

2. At any time, citizens may submit views concerning Palo Alto’s CDBG program performance to the HUD Region IX Office at One Sansome Street, Suite 1200, San Francisco, CA 94104.

3. The City’s website ( https://www.cityofpaloalto.org/cdbg) contains either the draft or adopted Consolidated Plan, draft or adopted versions of the Annual Action Plans and Performance Reports, the CDBG annual program timeline, and other pertinent program records, documents , and information. Interested citizens are encouraged to review the material online, download files, and provide comments or suggestions via letter or e -mail to the CDBG Coordinator.

4. Consistent with accessibility and reasonable accommodation requirements, in accordance with section 504 of the Rehabilitation Act of 1973 and the regulations at 24 CFR part 8; and the Americans with Disabilities Act and the regulations at 28 CFR parts 35 and 36, as applicable, upon request, materials and information will be made available in a format accessible to persons with disabilities. Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs, or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990 and Rehabilitation Act of 1973, may contact Ci ty of Palo Alto’s ADA Coordinator at (650) 329 - 2550 (Voice) or by emailing [email protected]. Public hearings will be held in the Council Chambers or other accessible locations. Requests for assistance or accommodations should be submitted as soon as possible but no later than 48 hours in advance of a scheduled meeting, program, or service.

Part 3. City Staff

1. The Planning and Development Services department has the primary responsibility for the administration and coordination of the CDBG program.

2. The planning process for the CDBG program is conducted on a two-year cycle and is coordinated with the City’s Human Service Resource Allocation Process (HSRAP). At the beginning of each fiscal year, staff will provide the general public, public agencies, interested citizens, and the Human Relations Commission (HRC) with the following information:

(a) The amount of grant funds and program income expected to be made available during the next fiscal/program year for proposed community development and housing activities;

(b) The range of activities that may be undertaken, including the estimated amount proposed to be used for activities that will benefit persons of low and moderate income;

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5 (c) The proposed CDBG activities which will likely result in relocation, and the City’s intent to minimize the necessity for relocation of persons as a result of assisted activities; and

(d) The types and levels of assistance the City will make available (or require others to make available) to persons who are eligible for relocation assistance as a result of CDBG assisted activities.

Additionally, staff will provide the HRC with updates on relevant ch anges to the CDBG funding allocations that occur after the HRC’s formal review the draft Annual Action Plan.

3. Planning staff will publish a su mmary of the proposed Consolidated Plan/Annual Action Plan in newspaper of local circulation and on the City of Palo Alto’s CDBG webpage. The summary will describe the contents and purpose of the Consolidated Plan and include a list of the locations where copies of the draft Consolidated Plan may be examined, and where it is available on the City’s website. In the summary, the City will make available to residents, public agencies, and other interested parties ’ information that includes the amount of assistance the City expects to receive (including grant funds and program income) and the range of activities that may be undertaken, including the estimated amount that will benefit persons of low- and moderate-income.

4. A reasonable number of free copies of the Draft Consolidated Plan/Annual Action Plan will be provided to citizens and groups that request it. Draft copies will be available at the Downtown Library, City Hall/Planning and Development Services, and the Development Center. The draft documents will also be available on the City’s CDBG webpage. Citizens may submit comments on the Consolidated Plan/Annual Action Plan during a public review period of no less than 30 calendar days.

5. Planning staff will maintain a mailing list of interested parties, who will be mailed or e- mailed information regarding public hearings or meetings, the availability of draft plans, substantial amendments, public comment periods, and other announcements. Members of the City’s Human Relations Commission will also receive this information.

6. To encourage a wider range of citizen participation during the development of the Consolidated Plan, the list of interested parties will be extended to include local and regional institutions and other organizations such as businesses, developers, community , and faith - based organizations, residents of public and assisted housing developments, persons receiving tenant -based rental assistance, the Housing Authority of Santa Clara County, and neighboring jurisdictions. In addition, the City will encourage participation of both public and private organizations, including broadband internet service providers, organizations engaged in narrowing the digital divide (e.g., schools, digital literacy organizations), and agencies whose primary responsibilities include the management of flood prone areas, public land or water resources, and emergency management agencies (81 Fed. Reg.91011, Dec. 16, 2016).

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6 7. Staff will provide adequate, timely notification of hearings and meetings so that citizens and other interested parties may attend and comment. Where feasible, a minimum of 14 - day notice will be provided for all public hearings regarding the CDBG Program. When possible, an ad will be placed in a local newspaper. All meetings and hearings will be noticed on the City of Palo Alto’s CDBG webpage.

8. Upon completion of the draft Consolidated Annual Performance and Evaluation Reports (CAPER), Planning staff will publish a notice in a newspaper of general circulation and on the City of Palo Alto’s CDBG webpage announcing the availability of the draft performance report, the locations where it may be reviewed, and a 15-day period for submitting public comments prior to its submission to HUD. Any comments or views of citizens received in writing or at public meetings in preparing the performance report shall be considered, summarized, and attached to the performance report.

9. The Consolidated Plan/Annual Action Plans as adopted, any substantial amendments, the performance reports and the Citizen Participation Plan will be available to the public on the City’s CDBG webpage, and upon request. Reasonable accommodations will be provided for requests for materials or information by persons with disabilities.

10. Planning staff will arrange for reasonable and timely access to public records related to the Citizens’ Participation Plan, the Consolidated Plan, the Annual Action Plans, Consolidated Annual Performance and Evaluation Report (CAPER), any amendments thereto, and the City’s use of CDBG funds during the preceding five years. Access to public records will be provided to citizens, public agencies, and other interested parties upon written or verbal request. An appointment may be required to view records, and a fee may be charged for copies to recover costs. Documents are available for public review in the Planning Division during advertised working hours.

11. Upon request, staff will provide technical assistance to community groups and groups representing individuals of low- and moderate-income in developing funding proposals for assistance under the Consolidated Plan. Staff will endeavor to provide assistance in the form of general information, relevant demographic or socio-economic data, interpretation of HUD rules and regulations, explanation of City policies and procedures affecting the CDBG program, or advice regarding funding proposals or alternative funding sources for projects which are ineligible under the CDBG program.

12. Planning staff will arrange for information to be presented in a bilingual fashion at public hearings whenever a significant number of non-English speaking residents can be expected to participate, or when a reasonable request is made for such a service.

13. Where practicable, planning staff will provide a timely, substantive written response to all written complaints and grievances regarding the CDBG program within 15 working days of receipt of such complaint or grievance.

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7 14. Planning staff will schedule and notice all required public hearings. Notice of the date, time, place, and agenda of the public hearings will be advertised at least 14 days prior to the hearing in a newspaper of local circulation and on the City’s CDBG webpage.

Part 4. The Human Relations Commission

1. The City’s Human Relations Commission (HRC) is charged with the discretion to act with respect to any human relations matter when the HRC finds that any person or group does not benefit fully from public or private opportunities or resources in the communi ty or is unfairly or differently treated due to factors of concern to the Commission.

2. In order to coordinate the City’s Human Service Resource Allocation Process (HSRAP) with the CDBG allocation process, the HRC will hold at least one public hearing annually to review and comment on the proposed CDBG funding allocations.

3. The HRC will hold a public hearing annually to review and comment on the draft Consolidated Annual Performance and Evaluation Report (CAPER).

Part 5. Substantial Amendments

1. Prior to the submission of any substantial change in the Consolidated Plan or Annual Action Plan, or proposed use of funds, residents of the community and interested citizens will be notified and provided a minimum of 30 calendar days to comment on the proposed changes before the amendment is implemented. The City Council will hold noticed public hearings on substantial changes where interested persons may comment.

All views and comments submitted in writing, or orally at public hearings will be considered in preparing the substantial amendment. A summary of these comments, and a summary of any comments or views not accepted and the reasons, therefore, will be attached to the substantial amendment.

2. Substantial amendments are defined as:

(a) A change in the use of CDBG funds from one eligible activity to another;

(b) The implementation of an activity not previously identified in sufficient detail to provide affected citizens an opportunity to submit comments; or

(c) A change in an activity’s program budget which exceeds ten percent (10%) of the City’s latest annual entitlement grant.

3. Minor Amendments are c hanges to a previously adopted Consolidated Plan or A nnual Action Plan that do not meet the thresholds to qualify as a Substantial Amendment. Minor amendments are typically processed at a staff level.

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8 Part 6. Summary of Review Procedures

Task Required
Comment
Period
HRC
Public
Hearing
City Council
Meeting
Annual Action Plan (AAP) 30 days X Action
Consolidated Annual Performance and
Evaluation Report (CAPER)
15 days X Information
Report
Substantial Amendments 30 days - Consent
Consolidated Plan (Con Plan) 30 days X Action
Assessment of Fair Housing (AFH)/ Analysis of
Impediments (AI)
30 days X Action
Citizen Participation Plan (CPP) 15 days X Consent

Part 7. Anti-Displacement Policy

1. The City of Palo Alto will comply with all federal regulations governing residential anti - displacement and relocation assistance as they pertain to the CDBG program.

2. It is the City’s policy to avoid, to the greatest extend feasible, the involuntary displacement of any persons, property, or businesses as a result of a federally funded CDBG activity such as acquisition, demolition, or rehabilitation.

3. The City will take all reasonable steps to minimize involuntary displacement as a result of CDBG activity by approving and designing activities in such a way that displacement is avoided whenever possible. In extraordinary circumstances where no feasible alternatives to displacement are available if the City’s community development objectives are to be met, the City will (or will require others to) properly notice and inform residents or tenants of their rights and potential eligibility for relocation benefits.

4. When there is no alternative to displacement, relocation benefits will be provided to all eligible persons in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) and the requirements of 24 CFR 570.606(b) and 24 CFR 570.606(c) governing the Residential Anti-displacement and Relocation Assistance Plan under Section 104(d) of the HUD Act.

Part 8. Citizen Participation Requirements in State of Emergency The City shall comply with all HUD memorandums and notices that direct citizen participation requirements in the event of a local, state, or national emergency or disaster. These requirements shall supersede any conflicting provisions of the Citizen Participation Plan.

Following the HUD standards will allow the City to respond in the most expeditious manner to secure and access new HUD funding and/or re-allocate existing funding.

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City of Palo Alto (ID # 14434)
Office of the City Clerk
City Council CAO Report

Meeting Date: 9/12/2022 Report Type: Consent Calendar

Title: Adoption of a Resolution Authorizing Use of Teleconferencing for Council Meetings During Covid-19 State of Emergency From: Lesley Milton, City Clerk

Recommendation
Adopt a Resolution (Attachment A) authorizing the use of teleconferencing under Government Code Section 54953(e) for meetings of the Council and its committees due to the Covid-19 declared state of emergency.

Background
In February and March 2020, the state and the County declared a state of emergency due to the Covid-19 pandemic. Both emergency declarations remain in effect.

On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act, effective October 1, 2021, to allow local policy bodies to continue to meet by teleconferencing during a state of emergency without complying with restrictions in State law that would otherwise apply, provided that the policy bodies make certain findings at least once every 30 days.

AB 361, codified at California Government Code Section 54953(e), empowers local policy bodies to convene by teleconferencing technology during a proclaimed state of emergency under the State Emergency Services Act in any of the following circumstances:

(A) The legislative body holds a meeting during a proclaimed state of emergency, and state or local of ficials have imposed or recommended measures to promote social distancing.

(B) The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in perso n would present imminent risks to the health or safety of attendees.
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(C) The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B) (B), that, as a result of the emergency , meeting in person would present imminent risks to the health or safety of attendees. (Gov. Code § 54953(e)(1).)

In addition, Section 54953(e)(3) requires that policy bodies using teleconferencing reconsider the state of emergency within 30 days of the first teleconferenced meeting after October 1, 2021, and at least every 30 days thereafter, and find that one of the following circumstances exists:

1. The state of emergency continues to directly impact the ability of the members to meet safely in person.

2. State or local officials continue to impose or recommend measures to promote social distancing.

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Discussion
At this time, the circumstances in Section 54953(e)( 1)(A) exist. The Santa Clara County Health Officer continues to recommend measures to promote outdoor activity, physical distancing and other social distancing measures, such as masking, in certain contexts. (See August 2, 2021 Order.) In addition, the California Department of Industrial Relations Division of Occupational Safety and Health (Cal/OSHA) has promulgated Section 3205 of Title 8 of the California Code of Regulations, which requires most employers in California, including in the City, to train and instruct employees about measures that can decrease the spread of COVID-19, including physical distancing and other social distancing measures.

Accordingly, Section 54953(e)(1)(A) authorizes the City to continue using teleconferencing for public meetings of its policy bodies, provided that any and all members of the public who wish to address the body or its committees have an opportunity to do so, and that the statutory and constitutional rights of parties and the members of the public attending the meeting via teleconferencing are protected.

To comply with public health directives and promote public safety, Palo Alto policy bodies have been meeting via teleconference since March 2020. On September 27, 2021, Council considered the format for future Council, committee, and Board and Commission meetings.

Council determined that beginning November 1, 2021, Council meetings would be conducted using a hybrid format that allows Council Members and the public to decide whether to attend in person, following masking and distancing protocols, or participate via teleconference. Council directed that Council standing and ad-hoc committees and Boards and Commissions would continue meeting via teleconference through January 2022.

Adoption of the Resolution at Attachment A will make the findings required by Section 54953(e)(3) to allow the continued use of teleconferencing for Council meetings (for those Council Members who elect to participate remotely) and for Council standing and ad hoc committees. Each Board and Commission will consider and make similar findings.

ATTACHMENTS:
• Attachment9.a: Attachment A: Resolution Allowing Hybrid In-Person and Teleconferenced Meetings under Section 54953(e) (PDF)
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NOT YET APPROVED
Resolution No. ____

Resolution Making Findings to Allow Teleconferenced Meetings Under California Government Code Section 54953(e)

R E C I T A L S

A. California Government Code Section 54953(e) empowers local policy bodies to convene by teleconferencing technology during a proclaimed state of emergency under the State Emergency Services Act so long as certain conditions are met; and

B. In March 2020, the Governor of the State of California proclaimed a state of emergency in California in connection with the Coronavirus Disease 2019 (“COVID-19”) pandemic, and that state of emergency remains in effect; and

C. In February 2020, the Santa Clara County Director of Emergency Services and the Santa Clara County Health Officer declared a local emergency, which declarations were subsequently ratified and extended by the Santa Clara County Board of Supervisors, and those declarations also remain in effect; and

D. On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act to allow local policy bodies to continue to meet by teleconferencing during a state of emergency without complying with restrictions in State law that would otherwise apply, provided that the policy bodies make certain findings at least once every 30 days; and

E. While federal, State, and local health officials emphasize the critical importance of vaccination and consistent mask-wearing to prevent the spread of COVID-19, the Santa Clara County Health Officer has issued at least one order, on August 2, 2021 (available online at here), that continues to recommend measures to promote outdoor activity, physical distancing and other social distancing measures, such as masking, in certain contexts; and

F. The California Department of Industrial Relations Division of Occupational Safety and Health (“Cal/OSHA”) has promulgated Section 3205 of Title 8 of the California Code of Regulations, which requires most employers in California, including in the City, to train and instruct employees about measures that can decrease the spread of COVID-19, including physical distancing and other social distancing measures; and

G. The Palo Alto City Council has met remotely during the COVID-19 pandemic and can continue to do so in a manner that allows public participation and transparency while minimizing health risks to members, staff, and the public that would be present with in-person meetings while this emergency continues; now, therefore,

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NOT YET APPROVED
The Council of the City of Palo Alto RESOLVES as follows:

1. As described above, the State of California remains in a state of emergency due to the COVID-19 pandemic. At this meeting, the Palo Alto City Council has considered the circumstances of the state of emergency.

2. As described above, State and County officials continue to recommend measures to promote physical distancing and other social distancing measures, in some settings.

AND BE IT FURTHER RESOLVED, That for at least the next 30 days, meetings of the Palo Alto City Council and its committees will occur in a hybrid format, where both members of the policy body and members of the public may elect to be present in person, utilizing appropriate distancing and masking practices, or participate by teleconferencing technology. Such meetings of the Palo Alto City Council and its committees that occur using teleconferencing technology will provide an opportunity for any and all members of the public who wish to address the body its committees and will otherwise occur in a manner that protects the statutory and constitutional rights of parties and the members of the public attending the meeting via teleconferencing; and, be it

FURTHER RESOLVED, That the City Clerk is directed to place a resolution substantially similar to this resolution on the agenda of a future meeting of the Palo Alto City Council within the next 30 days. If the Palo Alto City Council does not meet within the next 30 days, the City Clerk is directed to place a such resolution on the agenda of the immediately following meeting of Palo Alto City Council.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

City Attorney City Manager

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City of Palo Alto (ID # 14586)
City Council Staff Report

Meeting Date: 9/12/2022 Report Type: Consent Calendar

City of Palo Alto Page 1

Title: Adoption of a Park Improvement Ordinance for Renovation of the Mitchell Park Dog Park as Recommended by the Parks and Recreation Commission
From: City Manager
Lead Department: Public Works

Recommendation
The Parks and Recreation Commission and staf f recommend that City Council adopt a Park Improvement Ordinance (Attachment A) for the Mitchell Park Dog Park Expansion project, funded as part of the Dog Park Installation and Renovation c apital improvement project (PG- 18001).

Background
The City of Pal o Alto’s City Council adopted Parks Master Plan includes a policy (2.D) recommending the addition of dedicated, fenced dog parks distributed thr oughout the City.

The City Council prioritized expansion of dog parks as a city goal in 2017 with the adoption of Parks Master Plan. There are currently four existing dog parks in the City – Mitchell Park (0.56 acres), Peers Park (0.84 acres), Greer Park ( 0.06 acres), and Hoover Park (0.14 acres). An ongoing Capital Improvement Project (PG -18001) was established for the expansion and enhancement of dog parks in 2018 providing funding of $150,000 per project, funded by park development impact fees. Staff completed the Peers Park Dog Park in 2018 and is now pursuing Mitchell Park Dog Park improvements and expansion.

Discussion
On May 4, 2022, staff reviewed the proposed improvements to the dog park in a community meeting held online to obtain public input. T here were 26 participants. The response to the proposed renovations was positive and included suggestions to include hills/slope areas in the dog park, enlarge the dog park area as much as possible, add more seating/benches, and fix the existing drainage issues.

On June 28, 2022, the Parks and Recreation Commission (PRC) reviewed the proposed plans, which included revisions made per community comments. The PRC was supportive of the expansion plans and provided comments that were addressed in the plan prese nted for the Park Improvement Ordinance (PIO). These revisions included: the reduction of the small dog 10 Packet Pg. 82

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park fence height to 3 feet and the addition of 15 new native trees, a mix of Valley Oaks and California Sycamores, to the area for shade and habitat benefits.

On July 2 8, 2022, the PRC discussed an At Places Memo that provided an alternative to the Mitchell Dog Park fence alignment. PRC’s Chair, Jeff Greenfield, suggested moving the boundary of the proposed Mitchell Dog Park fence slightly away from the adjacent g roup picnic area to provide better privacy for the picnic area and to maintain some shady tree respites for people.

The At Places Memo mentioned that t his change would decrease the size of the dog park, but would still include some sloped hill areas, inclu ding some shade trees. The PRC discussed the proposed improvements listed in the draft PIO and the alternative fence alignment proposed in the At Places Memo (Draft Minutes).

The staff presentation mentioned the complaints and challenges related to the three -foot high fence that was once at Hoover Dog Park and suggested changing the proposed height for the new small dog park at Mitchell Park to five feet. The three-foot high fence at Hoover Dog Park was changed to a five -foot high fence due to complaints and requests from the do g park users at Hoover Park. Dogs, including small sized dogs, would regularly jump over the three -foot fence. The Commissioners agreed that this would be an appropriate change. The Commission supported the proposed dog park improvements but disagreed abou t the placement of the dog park fence along the hillside next to the picnic area. Several Commissioners supported moving the fence, as recommended in the At Places Memo, while others noted that they were not in favor of changing the fence line given that d oing so would conflict with the feedback collected at the community meeting.

The Commission voted 4:3 to recommend that City Council adopt a PIO for the Mitchell Park Dog Park with the five-foot high fence, as recommended by staff, and with the alternative fence alignment proposed in the At Places Memo.

The PIO includes the following items:
(1) Expand the size of the existing dog park area with new 5’ tall chain link fence (2) Install a new small dog park area with 5’ tall chain link fence (3) Replace existing irrigation system
(4) Replace existing mowed turf with ‘no mow’ grass to reduce maintenance (5) Add new site amenities including bench seating and waste receptacles (6) Establish 10’ set-back along Adobe Creek
(7) Install new area drains
(8) Plant new native trees

Next Steps
• Bid Document Preparation & Project Bidding: Fall 2022 • Construction Begins: Early 2023

Resource Impact
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The FY 2023 Adopted Capital Budget includes funding in the Capital Improvement Fund of $166,500 in the Dog Park Installation and Renovation c apital improvement project (PG-18001) to expand and enhanc e the City’s dog park resources as recommended by the Parks Master Plan. The operation and maintenance impacts associated with this project are minimal and budgeted funds are sufficient to address this minimal cost increase.

Stakeholder Engagement
On May 4, 2022, a community meeting (via Zoom) was held with 26 attendees. The PRC discussed the Mitchell Dog Park expansion project at its June 28 and July 28, 2022 meetings.

Staff also engaged the Palo Alto Dog Owners group (which represents several hundred Palo Alto residents advocating for more space to safely exercise and play with their dogs off -leash) to discuss the project and obtain their feedback.

A project webpage ( https://www.cityofpaloalto.org/dogparks) was created to help provide more information regarding the proposed Mitchell Park Dog Park renovation.

Policy Implications
The proposed recommendations are consistent with:
- Policy C-26 of the Community Services element of the Comprehensive Plan that encourages maintaining park facilities as safe and healthy community assets; - Policy C -22 that encourages new community facilities to have flexible functions to ensure adaptability to the changing needs of the community; - Policy C -3.2 Reinvest in aging facilities to improve their usefulness and appearance.

Avoid deferred maintenance of City infrastructure; and
- Program C3.3.1 Periodically evaluate how parks and recreational facilities are being used and develop strategies for improving their use overall.

The proposed recommendations are consistent with the Parks Master Plan Policy 2.D.

Environmental Review
The proposed expansion of the Mitchell Park Dog Park is categorically exempt from the California Environmental Quality Act (CEQA) under Title 14 California Code of Regulations Section 15301 (Existing Facilities), Section 15302 (Replacement or Reconstruction), Section 15303 (New Construction of Small Facilities or Structures), and Section 15311 (Accessory Structures) because it consists of the redevelopment of an existing facility.

Attachments:
• Attachment10.a: Attachment A - Ordinance Approving and Adopting a Plan for Facility Improvements at Mitchell Park
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*NOT YET APPROVED*
1 256_20220818_ts24

ORDINANCE NO.

Ordinance of the Council of the City of Palo Alto Approving and Adopting a Plan for Facility Improvements at Mitchell Park

The Council of the City of Palo Alto does ORDAIN as follows:

SECTION 1. Findings and Improvements
. The City Council finds and declares that:

(a) Article VIII of the Charter of the City of Palo Alto and section 22.08.005 of the Palo Alto Municipal Code require that, before any substantial building, construction, reconstruction or development is commenced or approved, upon or with respect to any land held by the City for park purposes, the Council shall first cause to be prepared and by ordinance approve and adopt a plan therefor.

(b) Mitchell Park (the “Park”) is dedicated to park purposes. (See Municipal Code section 22.08.180)

(d) The plan of improvements shall comprise as follows:

(1) Expand the size of the existing dog park area with new 5’ tall chain link fence (2) Install a new small dog park area with 5’ tall chain link fence (3) Replace existing irrigation system
(4) Replace existing mowed turf with ‘no mow’ grass to reduce maintenance (5) Add new site amenities including: bench seating and waste receptacles (6) Establish 10’ set-back along Adobe Creek
(7) Install new area drains
(8) Plant new native trees

(e) Exhibit A depicts the expected implementation of the plan of improvements.

(f) The plan of improvements described above is consistent with park, playground, recreation, and conservation purposes.

(g) The City Council desires to approve the plan of improvements described above.

SECTION 2. The City Council hereby approves the plan of improvements in the Park described in this Ordinance.

SECTION 3
. The City Council finds that this ordinance falls under the California Environmental Quality Act (CEQA) exemptions found in Title 14 California Code of Regulations

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*NOT YET APPROVED*
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Section 15301 (Existing Facilities) and Section 15303 (New Construction of Small Facilities or Structures).

SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

Assistant City Attorney City Manager

Director of Community Service

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EXHIBIT A

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City of Palo Alto (ID # 14689)
City Council Staff Report

Meeting Date: 9/12/2022 Report Type: Consent Calendar

City of Palo Alto Page 1

Title: Recommendation from the Human Relations Commission on the naming of the holiday on the second Monday in October
From: City Manager
Lead Department: Community Services

Recommendation
Staff recommends that the City Council consider the Human Relatio n Commission’s recommendation on the observance of the second Monday in October as both Indigenous Peoples’ Day and Columbus Day.

Background
On March 7, 2022, Council considered a Colleagues’ Memo from Vice Mayor Kou and Mayor Burt titled Recognizing Key Dates to Advance Race & Equity in which they recommended the local r ecognition and celebration of dates of historic significance that provide “an important opportunity to increase community awareness and for us to acknowledge the struggles and accomplishments of groups who have been fundamental to the development of Americ an society.”

Formal recognition of the following dates was proposed:
• June 19th as “Juneteenth” – Commemoration of the emancipation of enslaved people in the United States. June 19th is recognized as the date when freedom was obtained in the last locatio ns of the south and has become a symbolic date of African American freedom.
• May 31st as “Cesar Chavez and Dolores Huerta Day” – Paying homage to two key leaders of the United Farm Workers who fought for farm workers’ rights, economic justice, and civil rights.
• October 11th as “Indigenous Peoples ’ Day” – Changing Christopher Columbus Day to Indigenous Peoples’ Day.
• Proclaim May as “Asian American, Native Hawaiian and Pacific Islander Heritage Month.”

During the Council’s discussion, t here was general su pport of the new dates proposed and on changing October 11th (or the date of the second Monday annually in October) from Columbus 11 Packet Pg. 88

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Day to Indigenous Peoples’ Day. However, there was some interest by a member on the City Council to consider the recognition of the second Monday in October as “Italian Immigrant Day” as an option in addition to another option of recognizing it as both “Columbus Day” and “Indigenous Peoples’ Day” as do some states and as President Biden did last year. There was also a discussion on the consideration of other possible dates to recognize such as Holocaust Remembrance Day and Armenian Remembrance Day.

As the Human Relations Commission (HRC) has previously played a strong role in engaging on issues related to diversity in the commun ity, it was suggested that the Commission could give helpful input on how the dates identified could be celebrated, the evaluation of the other possible holidays/remembrance days mentioned, and the consideration of the possible re - naming of the October 11th – second Monday in October (currently Columbus Day) Holiday.

This direction is included in the motion that passed (7-0) as shown below.

MOTION: The City Council voted to formally recognize and celebrate the following dates:

A. Juneteenth, Cesar Chavez and Dolores Huerta Day, and add Indigenous Peoples’ Day as dates of historic significance, and May as Asian American Native Hawaiian/Pacific Islander Heritage Month;
B. Authorize Proclamations celebrating the above dates; C. Refer to the Human Relations Commis sion recommendations on how to best recognize and celebrate these dates (ones above); and
D. Ask the HRC to evaluate recognition of Holocaust Remembrance Day and Armenian Remembrance Day and evaluate if October 11th should be re -designated as Italian Heritage Day

Discussion
The HRC discussed the Council referral at its meetings on June 9, 2022 and August 11, 2022 and used as background and discussion guide a report written by Human Services staff. Due to a vacancy on the Commission, there are currently only four members. A t both meetings where the Council referral was discussed, three Commissioners were present, with a fourth member absent due to illness; June 9, 2022 (Eberle, Kraus, Smith present) and August 11 (Eberle, Kraus, Savage present). The June meeting was a discu ssion to review the staff report and ask questions about the referral and motions were entertained at the August 11, 2022 meeting.

Specifically, the HRC was asked to consider the following:

• How best to recognize and celebrate the holidays listed in the Council motion • Evaluation of the addition of Holocaust Remembrance Day and Armenian Remembrance Day for local recognition
• Whether October 11th should be re-designated as Italian Heritage Day

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After a time of discussion at the August 11 th meeting the Comm ission was not at the point of making a decision on the Council referral as more background information was forthcoming from a member who was not present . The Commission will discuss the following at their September 8, 2022 meeting ; 1) How best to recogni ze and celebrate the holidays listed in the Council motion and; 2) The evaluation of the addition of Holocaust Remembrance Day and Armenian Remembrance Day for local recognition. The Commission will also consider a framework to present to Council for use when reviewing possible new holidays/observance days in the future.

At the August 11th meeting, the Commission did discuss and make a recommendation related to the observance of the second Monday in October . During the discussion, two of the Commissioners present wanted the name of the holiday to be as inclusive as possible. There was a motion made by Vice Chair Eberle to observe the holiday as only Indigenous Peoples ’ Day. She stated that Palo Alto Unified School District does not observe the day and that “given the history of this country, it’s overdue to recognize Indigenous Peoples’ Day”. The motion failed to receive a second. Thereafter, the following motion was made:

MOTION: Commissioner Kraus moved, seconded by Commissioner Savage, to recognize the second Monday in October as Indigenous Peoples’ Day and Columbus Day in order to be as inclusive as possible. The motion passed 2-1 with Vice Chair Eberle dissenting.

Timeline
There is no specific timeline as to when this decision needs to be made but a s the second Monday in October is soon approaching, staff would like direction as to naming of this holiday for internal documents and external listing of the holiday on city communication channels.

Resource Impact
There is miminal resource impact in the recommendation to observe the second Monday in October as both Indigenous Peoples’ Day and Columbus Day. There are internal City documents that would need to be updated to reflect the change, if approved.

Policy Implications
This recommendation does not represent any change to existing City policies.

Stakeholder Engagement
The item was discussed at the June 9, 2022 and August 11, 2022 HRC meetings. Agendas are posted online and sent to interested community members via Gov Delivery. 11 Packet Pg. 90

City of Palo Alto (ID # 14724)
City Council Staff Report

Meeting Date: 9/12/2022 Report Type: Consent Calendar

City of Palo Alto Page 1

Title: Approval of Contract No. C23183740 with StreetSense CA, LLC for Economic Development Consulting Services for a Term Expiring December 31, 2025 and a Total Amount Not -to-Exceed $261,995; and Approval of a Budget Amendment in the General Fund
From: Ci ty Manager
Lead Department: City Manager

Recommendation
Staff recommends that Council:
(1) Approve and authorize the City Manager or their designee to execute the Contract No.

C23183740 (Attachment A) with StreetSense CA, LLC for a term expiring December 31 , 2025 for a not to exceed amount of $261,995 for the development of and work on an Economic Development Strategy for the City of Palo Alto; and (2) Amend the FY 2023 Budget Appropriation for the General Fund by (2/3 approval):
a) Increasing the contract services expense appropriation in the City Manager’s Office by $261,995; and
b) Decreasing the budget stabilization reserve by $261,995.

Executive Summary
The goal of the Economic Development Strategy is adoption of an economic development plan that includes a roadmap for short -term (within 3 year) and longer -term projects and actions to sustain the economic vitality of Palo Alto. Implementing prior Council direction, StreetSense CA, LLC (StreetSense) and HdL, as a subcontractor, will conduct an evaluation of the current economic landscape in Palo Alto, perform a Strengths, Weakness, Opportunity, and Threat (SWOT) analysis for economic activity, facilitate conversations with stakeholders invested in the City’s sustained economic vitality, and provide actionabl e recommendations to the City of Palo Alto. This will provide the City with a roadmap of options for supporting economic growth , continuing meaningful engagement with stakeholders – including residents, members of the business community, and others , and other actions and programs to inform the City’s path towards sustained economic vitality. Work is expected to be completed in full within 24 months, however, work products will be continuous during this time to ensure staff are both planning and executing recommendations throughout the contract period.

Background
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The City of Palo Alto (“City” or “Palo Alto”) has had multiple conversations at City Council meetings and with community stakeholders about economic development and economic vitality in Palo Alto in recent years. Through the COVID -19 pandemic the City took numerous actions and convened a series of business roundtable meetings, and the City Council adopted Community and Economic Recovery as one of its four 2021 priorities. The workplan for Community and Economic Recovery included refining the scope and breadth of the City’s economic development activities as an element. A full timeline of the City’s previous discussions at City Council regarding economic development can be found in Attachment B to this report.

In FY 2022, the City contracted with the Good City Company to scope an economic development strategy. The City Council reviewed the scope of services on June 1, 2021 ( CMR 12232) and approved that scope on September 13, 2021 ( CMR 13433 ). Th e City issued a Request for Proposals based on that approved scope of work.

Discussion
The City issued a Request for Proposals (RFP) for economi c development consulting services on December 17, 2021 and received two (2) proposals by the deadline of January 18, 2022.

Table 1. Summary of RFP Process:

RFP Name/Number:

Economic Development Consulting Services –
RFP No.183740
Proposed End Date of project: 6/30/2024
Total Days to Respond to RFP: 32
Number of Proposals Received: 2
Initial Proposal Price Range: $181,054 - $236,900

An evaluation committee consisting of staff from the City Manager’s Office, Planning and Development Services Office a nd the City’s consultant (Good City Company ) reviewed the proposals. Each of the firms that submitted proposals were invited to participate in oral interviews on March 21, 2022. Through evaluation of the proposals, StreetSense was selected for: 1) their ex perience with similar jurisdictions, 2) their comprehensive knowledge of the interconnectedness of a local business ecosystem with other elements of the community, and 3) their partnership with HdL Companies to bolster analytical efforts. The final contract cost was adjusted from the initial proposed level to account for additional on -premise activities requested, expected additional hours necessary to complete tasks as staff and the service provider further refined expectations and needs, as well as the i nclusion of a small contingency should additional work be requested or desired from the City.

Staff will work alongside StreetSense and HdL as a subcontractor to develop a comprehensive economic development strategy that will include both short-term recommendations (those that can be implemented within three years) as well as longer -term recommendations for sustained economic vitality in the City of Palo Alto.
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The Economic Development Strategy has the following main components:
• Task 1.0 – Develop Economic Development Goals and deliver summary memo Economic Development Goal Setting Workshop
• Task 2.0 – Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and Threats (SWOT) Matrix; Presentation Deck for public Distribution • Task 3.0 – Summary Memo of Global and National Economic Trends • Task 4.0 – Research and Draft Report of Strategies for Economic Development • Task 5.0 – Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax Analysis Report • Task 6.0 – Research and Produce Draft and Final Hospitality Market Analysis Report • Task 7.0 – Summary Memo and Business Profile of the City based on business registry Various sub -tasks necessary to fully complete the main compon ents are detailed more extensively in the contract’s scope of services, seen as Exhibit A in the attached contract. This scope of work was drafted in alignment with the Council approved scope of work referenced above and approved in FY 2022.

Timeline
The estimated time for completing the entire scope of services of the contract is 24 months, though the term of the contract extends beyond this estimate to address any unforeseen changes in timelines. StreetSense is prepared to begin working immediately after the signature of the contract and will schedule their first discussions with key stakeholders as early as September 2022.

Many of these tasks will run concurrently. For example, while StreetSense is preparing for initial outreach, they will also be rese arching current trends in retail and local business development and retention. Parallel work is intended to ensure progress will be made at a steady, consistent pace, incorporating recurring feedback and inputs from some of the tasks into the overall economic development strategy.

This work will be iterative with the City Council; the scope of services includes initial data gathering, analysis, and synthesis by the StreetSense team before a discussion with the City Council on initial findings and recommendations.

Stakeholder Engagement
City staff has been in ongoing communication with the business community, including stakeholders of the University Avenue and California Avenue districts as well as the Chamber of Commerce throughout the process of refinin g the scope and breadth of the City’s economic development function. Through the development of Economic Development strategies, StreetSense will continu e this engagement with key stakeholders and stakeholder groups, incorporating feedback into their final recommendations.

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Resource Impact
Funding for this contract was previously budgeted in the Strategic Initiatives Reserve in the FY 2022 Adopted Operating Budget. Ordinarily, the funds would be reappropriated as part of the standard process for reappropriations since the contract was not able to be finalized before the close of FY 2022. The annual reappropriation memorandum is anticipated to be presented to Council in October 2022.

Given the timeliness and urgency of this contract, the budgetary actions de scribed in the recommendation section of this report constitute an “early reappropriation”. The actions described in this report effectively use FY 2022 funding of $261,995 that was appropriated for City Council approved initiatives , including economic rec overy; however, due to the timing of the contract award in a new fiscal year the funding is currently available as fund balance in the Budget Stabilization Reserve (BSR) . As a result, even though the recommendation draws on fund balance to encumber funds f or this contract , the impacts on the BSR have already been incorporated into projections and discussion of available fund balance in the General Fund.

Policy Implications
This project is consistent with prior Council direction to further revise and develo p the scope of the City’s economic development activities. As discussed earlier in this report, Attachment B details prior City Council discussions pertaining to the economic development function and includes links to the respective CMRS. This project is a lso consistent with the City’s comprehensive plan, which includes goals and policies related to a thriving economy, compatibility and interdependence of businesses, a culture of innovation and business diversity, efficiency and predictability, and retail centers and business employment districts.

Environmental Review
The development of economic development strategies is not a project that requires California Environmental Quality Act (CEQA) review, because it is an administrative government activity which will not directly or indirectly cause physical changes to the environment.

Attachments:
• Attachment12.a: Attachment A: StreetSense CA, LLC. Contract; C23183740 • Attachment12.b: Attachment B: Previous Council Discussions of Economic Development
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Professional Services
Rev. Dec.15, 2020

Page 1 of 25 ends

CITY OF PALO ALTO CONTRACT NO. C23183740

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND STREETSENSE CA, LLC

This Agreement for Professional Services (this “Agreement”) is entered into as of the 12 day of September, 2022 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and STREETSENSE CA, LLC, a California limited liability company , with its principal offices located at 641 S Street, NW, Washington, DC 20001 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to award a contract for Economic Development Consulting Services (the “Project”) and desires to engage a consultant to provide support to the City’s economic development strategy in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all requir ed licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

SECTION 2. TERM . The term of this Agreement shall be from the date of its full execution through December 31, 2025, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Two Hundred Thirty -Eight Thousand One Hundred Seventy -Eight DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918

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Dollars ($238,178.00). The hourly schedule of rates, if applicable, is set out in Exhibit C -1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not -to- exceed compensation amount for Additional Services is allocated below under this Section 4.)

In addition to the not -to-exceed compensation specified above, CITY has set aside the not- to- exceed compensation amount of Twenty -Three Thousand Eight Hundred Eighteen Dollars ($23,818.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Two Hundred Sixty -One Thousand Nine Hundred Ninety-Five Dollars ($261,995.00), as detailed in Exhibit C.

“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4.

CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager w ithin the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rate s, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoic es shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below.

CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE . All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918

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the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

SECTION 7. COMPLIANCE WITH LA WS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services un der this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS . CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.

SECTION 10. INDEPENDENT CONTRACTOR . CONSULTANT acknowledges and agrees th at CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT.

Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, t he covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties.

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SECTION 12. SUBCONTRACTING.

Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designe e.

In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:

HdL Companies, which will perform a tax analysis report.

CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT . CONSULTANT will assign Larisa Ortiz, Managing Director, Public/Nonprofit, address: 641 S Street NW, Washington, DC 20001, telephone: (917) 696-1374, email: [email protected] as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day- to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement p ersonnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

CITY’s Project Manager is Steve Guagliardo, Administrative Services Department, 250 Hamilton Ave., Palo Alto, CA, 94301, telephone: (650)329-2450 email: [email protected] . CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 14. OWNERSHIP OF MATERIALS . All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY . Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

Notwithstanding anything to the contrary set forth herein, CITY hereby acknowledges that prior to entering into this Agreement with the CITY, CONSULTANT has developed certain computer programs, processes, report formats and other intellectual property in connection with Consultant’s ongoing business operations DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918

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("Consultant’s IP") and CITY hereby expressly waives any claim of ow nership of or right to any of the Consultant’s IP. C ONSULTANT hereby grants CITY a perpetual, royalty- free, non-exclusive and non- transferable right and license to use Consultant’s IP in connection with the work product in order to complete the Project contemplated herein, and only for the purpose that the work product was created for such Project.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, upon prior written notice to CONSULTANT at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records perta ining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including reasonable attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 16.A. LIMITATION OF LIABILITY. Notwithstanding anything to the contrary contained herein, and except to the extent the claims arise out of a breach by CONSULTANT of its confidentiality obligations herein or are contained in a third party claim that is subject to the indemnity set forth herein, in no event shall either party be liable for special, incidental, or consequential damages resulting from any breach of this Agreement, even if such party has been notified of the possibility of same. A third party claim shall refer to claims made by any party that is not the CITY or the CONSULTANT.

SECTION 17. WAIVERS . No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

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18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIRE MENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in co verage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice t o CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918

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account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material confo rmity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 16.A, 17, 19.2,

19.3, 19.4, 20, 25, 27, 28, 29 and 30.

19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).

SECTION 20. NOTICES.

All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:

To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303

With a copy to the Purchasing Manager

To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement.

CONSULTANT shall provide written notice to CITY of any change of address.

SECTION 21. CONFLICT OF INTEREST.

21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.

21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time.

CONSULTANT agrees to notify CITY if any conflict arises.

21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918

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housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontracto r, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable- based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .

CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.

SECTION 25. NON -APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to t ime. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available.

This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

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SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.

26.1. This Project is not subject to prevailing wages and related requirements.

CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction pro ject of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or
(3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).

SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub.

Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

This Project is not a 9204 Public Works Project.

SECTION 28. CONFIDENTIAL INFORMATION.

28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement.

Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.

28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918

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to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.

28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.

28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.

28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.

SECTION 29. MISCELLANEOUS PROVISIONS.

29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.

29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.

29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action.

The prevailing party shall be entitled to recover an amount equal to the fair m arket value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.

29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.

29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.

29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.

29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.

29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.

29.9. This Agreement may be signed in multiple counterparts, which, when executed by DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918

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the authorized representatives of the parties, shall together constitute a single binding agreement.

SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:

EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

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CONTRACT No. C23183740 SIGNATURE PAGE

IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.

CITY OF PALO ALTO

____________________________
City Manager

APPROVED AS TO FORM:

__________________________
City Attorney or designee

STREETSENSE CA, LLC

Officer 1

By:__________________________________

Name: Kurt Haglund

Title: Chief Operating Officer, Authorized
Signatory

Officer 2

By:__________________________________

Name: Ira Starr

Title: Chief Administrative Officer, Authorized
Signatory

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EXHIBIT A

SCOPE OF SERVICES

CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.

CONSULTANT will produce an Economic Development Workplan for the City of Palo Alto, a roadmap for interventions and strategies that can be implemented in the near-term (within three years) and iterated upon for longer-term success by providing the services outlined below:

Task 1.0 – Define Economic Development Goals and deliver a summary memo of the goal setting workshop

Task 1.1 – Document Review
• CONSULTANT will review any publicly available data and relevant background data, including – but not limited to - area and comprehensive plans, business surveys, previous demographic/market studies, and real estate industry reports (including that of competitive submarkets) to inform understanding of conditions in Palo Alto. • CONSULTANT will seek to identify gaps in background information and resolve with the CITY at kickoff meeting.

Task 1.2 – Site Visit
• CONSULTANT will conduct a site visit to gather field data based on predefined study area boundaries, including an observational assessment of the public realm public realm/storefronts/access/visibility.
• CONSULTANT’s site visit will include stakeholder interviews.

Task 1.3 – Kickoff Meeting
• CONSULTANT will facilitate a kickoff meeting with all project stakeholders (as mutually determined with the CITY) to establish baseline expectations for ongoing work. • Kickoff meeting will cover topics including: communication channels to ensure timely and high- quality delivery of project tasks, defining key commercial districts, discussing aspirational markets for comparison, and aligning project objective s methodology, schedule, deliverables, and protocols.
• Project managers will be identified for both the CONSULTANT and the CITY.

Task 1.4 – Goal Setting Workshop
• CONSULTANT will facilitate a visioning session with the steering committee of key stakeholders in the City of Palo Alto to determine a set of measurable economic development goals (or Key Performance Indicators (KPIs).
• CONSULTANT will work to elicit feedback from stakeholders on KPIs, which typically measure impact through numbers or ratios, e.g. a 20% increase in overnight stays. • The workshop will also identify potential tools for measuring those goals and lead partners to measure the KPIs.

Task 2.0 – Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and Threats (SWOT) Matrix; Presentation Deck for public Distribution

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Task 2.1 – Physical Environment Assessment
• CONSULTANT will gather field data on existing conditions of key commercial districts and corridors through site visit and stakeholder conversations • CONSULTANT will assess major economic assets such as office campuses, manufacturing facilities, lodging facilities, and visitor destinations. • CONSULTANT will assess the strengths and weaknesses of the public realm, private, realm, and accessibility/visibility of each economic cluster
o CONSULTANT will evaluate the public realm, including roadways, sidewalks, rails & trails, and public spaces that support access to, and mobility within and across, communities
o CONSULTANT’S evaluation of the public realm shall include conditions and accessibility of existing open spaces that offer people places to gather and participate in economic activity
o CONSULTANT will evaluate the private realm, including private assets, properties and buildings, and the balance of the physical environment. o CONSULTANT’S evaluation of the private realm will consider existing built assets and the location and site location characteristics (access to customer base, proximity to existing nodes, the ability to create sufficient concentration of offerings to support a new node) of underutilized opportunity sites as well as underlying ownership.

Task 2.2. – Business Environment (Economic Activity) Assessment • CONSULTANT will explore and analyze the “Drivers” of the Palo Alto economy, including the anchors/destinations, concentrations/clusters of business activity (economic clusters), and local business mix and employment
• CONSULTANT will assess each cluster and develop asset maps that identify key business anchors (Across sectors and industries) that drive economic activity and influence tenant mix within each area.
• CONSULTANT will analyze the sales tax growth/contraction against baselines before COVID and during COVID and conduct an economic base analysis to estimate general rate of growth of business activity across sectors
• CONSULTANT will determine if there are any competitive sectors/industries that would benefit from a focused strategy by the CITY in the future
Task 2.3 – Commercial Real Estate Market Assessment
• CONSULTANT will analyze qualitative and quantitative data to understand the supply and demand of commercial real estate in the region
• CONSULTANT will identify if, and how much, latent demand exists in the Palo Alto submarket for new office, retail, and industrial development based on historic real estate performance • CONSULTANT will factor in submarket vacancy rates, construction rates, product type, price points, quality of space, and future competition into its analysis of latent demand

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Task 2.4 – Produce Economic Development Brochure
• CONSULTANT will produce a succinct (two (2) to ten (10) page) brochure that can serve as a marketing tool to help generate interest in Palo Alto as a business location from potential businesses, investors, funders, and founders.

Task 2.5 – Regulatory/Administrative Capacity Assessment • CONSULTANT will analyze the organizational capacity of the CITY to execute and implement economic development programs and initiatives
• CONSULTANT will identify local leaders and partners (including anchor businesses and institutions such as local non-profit organizations) engaged in economic development • CONSULTANT will identify additional resources and funding that may be needed to successfully support implementation of strategies
• CONSULTANT will assess the existing regulatory framework (including, but not limited to, zoning and permitting/licensing processes) that shape what can be built where o CONSULTANT will identify aspects of the regulatory framework that may impeded economic development or encourage market distortion
• CONSULTANT will research and identify other operating challenges to local businesses through stakeholder conversations and business survey input
Task 2.6 – SWOT Matrix of Assessment Findings
• CONSULTANT will organize key findings from the assessments of the physical environment, businesses environment, commercial real estate, and administrative capacity into a SWOT matrix • CONSULTANT will facilitate a discussion of the SWOT matrix with the CITY to focus on priority areas for improvement
Task 2.7 – City Council Presentations
• CONSULTANT will present Economic Scan to City Council and conduct City Council outreach through coordination with CITY’s project manager
• CONSULTANT will provide at least three City Council updates throughout the process at City Council meetings
Task 3.0 - Summary Memo of Global and National Economic Trends • CONSULTANT will research industry-wide changes in business operations, business travel, and trends that serve as indicators for how consumer tastes/preferences are evolving • CONSULTANT’s trend assessment will analyze secondary data from a variety of sources, including, but not limited to,
o Real Estate Brokerage Experts (via CBRE)
o Real Estate Market Outlook Reports (e.g. JLL, Colliers, Newmark) o San Francisco Travel Association
o World Travel and Tourism Council
o Destination Analysts
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o Tourism Economics (Annual Economic Impact Reports)
o Destination Palo Alto’s subscription data
o Other publicly available reporting

Task 4.0 – Draft Report of Strategies for Economic Development, Revisions, and Final Report of Strategies for Economic Development

Task 4.1 – Research and Draft Report of Strategies for Economic Development • CONSULTANT will draft an economic development plan and strategy that prioritizes readily implementable short- and long-term actions and projects. • CONSULTANT will clearly outline key steps that the CITY and stakeholders can take to implement any project or recommendation.
• CONSULTANT will include geographic focus areas of investment which may include economic clusters or specific opportunity parcels or sites.
• CONSULTANT’s draft report recommendations may include, but is not limited to, the following areas:
o Redevelopment in the public realm: Includes any improvements to existing transportation networks, public utility extensions, placemaking/tactical improvements, public space capital projects, and signage and wayfinding.
o Redevelopment in the Private realm: includes programmatic interventions to support and/or incentivize private sector investments in real property improvements. o Business retention and attraction: includes programs that support business attraction, expansions, and relocation (e.g. workforce training, relocation incentives, and other) o Marketing and Promotion: includes tolls that will increase visits and raise awareness of the City’s assets and retail/dining offerings, particularly through digital platforms. o Administrative capacity: includes strategies to address issues of capacity that might otherwise impede implementation of strategies (including capacity-building programs and partnerships with anchor businesses) as well as recommendations to address regulatory or zoning issues that may impede business growth and vitality.

Task 4.2 – Feedback from the City of Palo Alto
• CITY shall provide feedback on the draft report provided by CONSULTANT • CONSULTANT will facilitate a City Council working session on draft strategies after CITY feedback has been incorporated
Task 4.3 – Finalize and Present Report of Strategies for Economic Development • CONSULTANT will incorporate feedback from the working session City Council to create a Final Report on Strategies for Economic Development

Task 5.0 – Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax Analysis Report DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918

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Task 5.1 – Research and Draft Retail Market Analysis Report and Draft Tax Analysis Report • CONSULTANT will identify additional revenue opportunities through Market Analysis Report and Draft and Final Tax Analysis Report
• CONSULTANT will analyze market-supported retail demand for the past five years through the City’s core commercial cores (Downtown, Stanford Shopping Center, California Ave., and neighborhood shopping centers)
• CONSULTANT will develop a comprehensive analysis of sales tax performance (including a breakdown by major business categories and across each commercial core) • CONSULTANT will transmit draft versions of:
o A sales tax gap leakage analysis: includes consumer demand and market supply assessment to evaluate sales tax performance within Palo Alto and ability to draw consumers from nearby communities and the greater trade area. o Assessment of Palo Alto’s major sources of tax revenue (sales tax, property tax, and transient occupancy tax) for pre-pandemic revenues, current revenues, and a three-year projection.
o A SWOT analysis for Palo Alto to identify challenges and constraints along with opportunities to recognize going challenges as well as future threats to the Palo Alto retail marketplace
o A void analysis to identify market opportunities for Palo Alto to attract new retail and restaurant possibilities that would be a good fit with the Palo Alto market place and market analytics make-up
• CONSULTANT shall submit draft reports to the City of Palo Alto Task 5.2 – Feedback from the City of Palo Alto
• CITY will provide feedback on draft reports to the CONSULTANT Task 5.3 – Finalize Retail Market Analysis Report and Tax Analysis Report • CONSULTANT will incorporate CITY feedback into final versions of Retail Market Analysis Report and Tax Analysis Report

Task 6.0 – Research and Produce Draft and Final Hospitality Market Analysis Report

Task 6.1 – Research and Draft Hospitality Market Analysis Report • CONSULTANT will investigate and determine potential for hotel development in core commercial districts based on diagnostic assessment of submarket o Assessment will consider quality and quantity of existing hotel rooms, year-over-year occupancy rates, price points, and future competitions
• CONSULTANT will determine any viable demand gaps in the market and provide estimates for RevPAR and occupancy levels
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• CONSULTANT will develop a comprehensive set of recommendations to reinforce the City’s branding to travelers, increase overnight stays and visitor spending, and bolster existing community assets and priorities
• CONSULTANT will research questions around changes in corporate travel policies through iterative conversations and a survey instrument with key companies, institutions, and stakeholders.
• CONSULTANT will convene a focus group discussion with corporate stakeholders to uncover potential competitive advantages from the perspective of business travel. • CONSULTANT will prepare a draft a report synthesizing findings related to the hospitality market which may include, but is not necessarily limited to:
o Strategies for growing demand from visitors: includes raising awareness of existing assets through marketing, promotion, and branding, as well as strategies that improve the accessibility and visibility of the region’s offerings. o Strategies to improve supply of visitors and hospitality: includes the quality and quantity of offerings that are unique to Palo Alto, with an emphasis on strategic destination drivers that reinforce the brand of Palo Alto and further differentiate the City from other regional destinations. May include capital investments to specific assets and/or public realm enhancements that improve the visitor experience.

Task 6.2 – Feedback from the City of Palo Alto
• CITY will provide feedback on the draft report to the CONSULTANT Task 6.3 Finalize Hospitality Market Analysis Report
• CONSULTANT will incorporate CITY feedback into final version of Hospitality Market Analysis Report
Task 7.0 – Summary Memo and Business Profile of the City based on business registry

Task 7.1 – Assess Business Registry
• CONSULTANT will analyze and identify ‘gaps’ in the retail mix through examining the existing supply/landscape of businesses
• CONSULTANT will identify gaps in information currently detailed in the business registry for future revisions
Task 7.2 – Business Profile for the City of Palo Alto
• CONSULTANT will compare information from the business registry and other research to accurately determine any unmet market demand and potential new retail opportunities/expansions • CONSULTANT will prepare a summary memo detailing their findings

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. ( AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME &
DEPARTMENT:_____________________________________

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:________________________________
Name ______________________________
Title_______________________________
Date _______________________________

I hereby acknowledge receipt and
acceptance of this Task Order and warrant
that I have authority to sign on behalf of
Consultant.

APPROVED:

COMPANY NAME:
___________________________________

BY:________________________________
Name ______________________________
Title________________________________
Date _______________________________

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EXHIBIT B

SCHEDULE OF PERFORMANCE

CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.

Milestones Completion (Number of Months from NTP);
approximate hours if applicable

Task 1: Define Economic Development Goals; create and transmit summary memo of the goal setting workshop

9 months; 96.5 hours

Task 2: Research and Create Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and Threats (SWOT) Matrix; Presentation Deck for public Distribution

6 months; 341 hours

Task 3: Summary Memo of Global and National Economic Trends

5 months; 51.5 hours

Task 4: Research and Draft Report of Strategies for Economic Development

11 months; 144 hours

Task 5: Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax Analysis
Report

10 months; 74 hours

Task 6: Research and Produce Draft and Final Hospitality Market Analysis Report

10 months; 206 hours

Task 7: Summary Memo and Business Profile of the City based on business registry

5 months; 30 hours

Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)

The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on -call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.

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EXHIBIT C

COMPENSATION

CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C -1 up to the not to exceed budget amount for each task set forth below.

CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.

CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in thi s Agreement shall be at no cost to the CITY.

BUDGET SCHEDULE

Milestones Not to Exceed (NTE)
Amount by Task
Task 1: Define Economic Development Goals; create and transmit summary memo of the goal setting workshop
$31,032
Task 2: Research and Create Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and Threats (SWOT) Matrix; Presentation Deck for public Distribution
$101,186
Task 3: Summary Memo of Global and National Economic Trends $9,540 Task 4: Research and Draft Report of Strategies for Economic Development $37,990 Task 5: Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax Analysis Report $15,780
Task 6: Research and Produce Draft and Final Hospitality Market Analysis Report $37,750 Task 7: Summary Memo and Business Profile of the City based on business registry

$4,900
Sub-Total: $238,178
10% Contingency (Additional Services per Section 4 of this Agreement) $23,818 Reimbursable Expenses $0
Grand Total: $261,995

REIMBURSABLE EXPENSES

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support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordi nary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are:

NONE up to the not-to-exceed amount of: $0.00.

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EXHIBIT C-1

SCHEDULE OF RATES

CONSULTANT’s schedule of rates is as follows:

Hourly Rates:

Where the fee arrangement is to be on an hourly basis, the hourly rates shall be as noted below:

Managing/Technical Director $300
Senior Director $250
Director $225
Senior Manager $200
Manager $180
Senior Consultant $165
Consultant $110-$140
Administrative Support $110

Subcontractor’s hourly rates are:

Principal Managing Director $250
Senior Associate $180

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EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR

THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S K EY RATING OF A- :VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY

STATUTORY

STATUTORY STATUTORY STATUTORY
YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000

$1,000,000

YES

AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED, HIRED,

NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000

$1,000,000

YES

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND

OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT

PERFORMANCE
ALL DAMAGES $1,000,000
YES

THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS

SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT

THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE

HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND

PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. [INTENTIONALLY REMOVED].

II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL:

HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569

III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:

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A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE

NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY

AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER

INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS

INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE,

EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS

ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR

ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE
CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY

WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR

THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL
PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE

REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE
FOLLOWING URL:

HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569

HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP

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ATTACHMENT B

Previous City Manager Reports Related to Economic Development The dates of key previous conversations with the City Council regarding Economic Development, dating back to November 30, 2020, are included below. These conversations shaped and informed the scope of services included the Request for Proposals.

Following the date, a brief description, the CMR number, and a link to the pertinent report is included. • November 30, 2020 – Study Session on Community and Economic Recovery Strategies (CMR 11790) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2020-2/id-11790.pdf
• January 19, 2021 – Feedback and Direction on Economic Recovery Workplan (CMR 11877) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-11877.pdf
• February 2021 – The City Council adopted its calendar year 2021 Priorities, including Community and Economic Recovery (CMR 11957)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-11957.pdf
• March 22, 2021 – Community and Economic Recovery workplan adopted including item “G: Refine the scope and breadth of the city’s economic support activities” (CMR 12111) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12111.pdf
• May 3, 2021 – Update on Community and Economic Recovery (CMR 12206) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12206.pdf
• June 1, 2021 – Discussion and Direction on the Scope of Economic Development (CMR 12232) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12232.pdf
• June 21, 2021 – Update #2 Community and Economic Recovery Workplan (CMR 12362) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12362.pdf
• September 13, 2021 – Discuss and Provide Direction on a Request for Proposals (RFP) for an Economic Development Strategy Consultant and an Internal Staffing Plan to Support Economic Development Issues (CMR 13433)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2021/09-september/20210913/20210913pccsm-amended-linked-final- council-qa.pdf

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City of Palo Alto (ID # 14656)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/12/2022
City of Palo Alto Page 1
Summary Title: 215/217 Alma: Retail Preservation Waiver for Animal Care Use
Title: QUASI -JUDICIAL. 215/217 Alma Street {22PLN -00164}: Ratification of Director's Approval of Waiver From the Retail Preservation Ordinance for an Alternative Viable Use to Allo w for an Animal Care Provider (Modern Animal) to Occupy a 4,200 Square Foot Portion of the Site. Zone District: Commercial Downtown Neighborhood with a Pedestrian Combining District (CD -N[P]).

Environmental Assessment: Exempt from CEQA in Accordance With Guidelines Section 15061(b)(3) and 15301.

From: City Manager
Lead Department: Planning and Development Services
Recommendation
Staff recommends that Council approve the Record of Land Use Action in Attachment B, ratifying the Director’s decision approving the subject waiver request.

Background
This report transmits the Planning & Development Services Director’s tentative approval for a partial waiver from the retail preservation ordinance adopted by Council on August 24, 2022, for the property located at 215/217 Alma Street.

Pursuant to Section 18.40.180 of the Municipal Code, owners of properties outside the Ground Floor (GF) and Retail (R) combining districts may apply for an adjustment or waiver from ground floor retail protections . This waiver is based on showing that the permitted retail or retail -like use is not viable, that the proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation, and that the proposed use will encourage active pedestrian-oriented activity and connections. Applicants must provide substantial evidence to support their application and bear the burden of proof. The Director renders a tentative decision, which is then placed on the City Council’s Consent agenda. The Council may acce pt 13 Packet Pg. 121

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this decision on Consent, or alternatively, three council members may pull this item and require a future City Council public hearing.

Discussion
The owner of the property at 215/217 Alma, in conjunction with the future proposed tenant, Modern Animal, requested a partial waiver from ground floor retail protections on May 17 , 2022. A location map is included in Attachment A. The applicant provided supporting information about the tenant history over the past ten years ; surrounding land uses ; leasing efforts over the past seven years, including prospective tenant inquiries ; information about the proposed new use ; and other information to support their request (Attachment D). The last known tenant to occupy the building was a retail tenant, The North Face. When the interim ground floor retail protection ordinance was enacted in May and June of 2015, this retail use was legally operating at the address . The North Face left this space in April 2016 to occupy retail space at Stanford Shopping Center. The proper ty owner began marketing the space in October 2015 to prospective tenants. Although other tenants expressed interest and one tenant even signed a lease and filed for a conditional use permit, which was approved, the tenant eventually chose not to open their business at this site.

The Retail Preservation ordinance gives the Director the authority to waive the provision requiring the preservation of retail or retail -like use in a tenant space. This decision is based on a determination that a retail or retail -like use is not viable at the location, that an alternative use will support the purposes of the zoning district and comprehensive plan, and that the proposed use will encourage active pedestrian -oriented activity and connections. The Director reviewed the attached waiver request, including the supporting information that was provided, and believes that it meets the standards of Section 18.40.160(c)(1)(B). In accordance with the provisions of the ordinance, the Director’s decision letter is included with t his report as Attachment C. The subject site is zoned Commercial Downtown Neighborhood with a Pedestrian Combining District (CD -N[P]) and has a similar designation in the Comprehensive Plan. The C D zone is intended “to be a comprehensive zoning district fo r the downtown business area, accommodating a wide range of commercial uses serving city -wide and regional business and service needs, as well as providing for residential uses and neighborhood service needs.”

The identified r eplacement use, animal care, is a permitted use within the C D-N zone District.

Surrounding land uses include public facilities to the north and west ( Palo Alto Water Tower and a small parklet space to the north along Alma and Caltrain across Alma) , an office use to the east, and a si ngle-family residential use to the south. The site is deemed potentially eligible for the California Register of Historic Resources (CRHR); therefore, any application for demolition and reconstruction would require further analysis of the site’s eligibilit y. Any future improvements associated with animal care use would be required to comply with all applicable 13 Packet Pg. 122

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municipal code regulations. Only internal tenant improvements are proposed at this time.

Treatment along the front windows would be required to compl y with the Pedestrian Combining District requirements.

Policy Implications
Since the adoption of the Retail Preservation Ordinance in March 2016, two other waiver requests were granted. It is unclear if this proposed waiver request will encourage others to similarly seek relief from the Retail Preservation Ordinance. The subject waiver approval is not precedent-setting, however, as each request received is evaluated on its own merits and is subject to Council acceptance. The future use of the site by Mode rn Animal would comply with applicable zoning regulations and the Comprehensive Plan.

Resource Impact
The recommendation in this report has no significant budget or fiscal impacts. However, granting relief from the Retail Preservation Ordinance is anticip ated to address the long - standing vacancy of the site, which may have marginal fiscal benefits to the city and other unquantifiable benefits to area businesses.

Timeline
The Council’s approval of this determination , ratifying the Director’s decision, is e ffective immediately and is final. A request to pull this item of consent would result in scheduling a future public Council hearing.

Stakeholder Engagement
As of the writing of this report, no public comments were received on the proposed project.

Environmental Review
This determination is exempt from the provisions of the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines in that it can be seen with certainty that there is no possibility the decisi on to waive this property from the city’s retail preservation ordinance would cause a significant effect on the environment. The project is also exempt in accordance with CEQA Guidelines Section 15301 (existing facilities).

Attachments:

Attachment13.a: Attachment A: Location Map (PDF)
Attachment13.b: Attachment B: Record of Land Use Action (DOCX) Attachment13.c: Attachment C: Director's Tentative Approval of the Requested Retail Waiver (PDF)
Attachment13.d: Attachment D: Applicant's Project Description and Supporting Documentation (PDF)
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Attachment A:

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APPROVAL NO. 2022-____
RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 215/217 ALMA STREET:

RETAIL PRESERVATION WAIVER REQUEST (22PLN-00164)

On August 26, 2022, the City Council of the City of Palo Alto Ratified the Director of Planning & Development Services Approval of a Retail Waiver Request for a 4,200 sf tenant space at 215/217 Alma, allowing for an Alternative Viable Use, Animal Care, making the following findings, determinations and declarations:

SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows:

A. The permitted retail or retail-like use is not viable at this time.

B. The proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation will encourage active pedestrian- oriented activity and connections.

C. On September 12, 2022, the City Council held considered the matter on its consent calendar, at which time all persons were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council’s Policies and Procedures.

SECTION 2. Environmental Review. This determination is exempt from the provisions of the California Environmental Quality Ac t (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines in that it can be seen with certainty that there is no possibility the decision to waive this property from the city’s retail preservation ordinance would cause a significant effect on the environment. The project is also exempt in accordance with CEQA Guidelines Section 15301 (existing facilities).

SECTION 3. Retail Waiver Request Findings

1. The permitted retail or retail-like use is not viable

The applicant’s supporting documentation shows efforts made over a seven-year period (since October 2015) to lease the property without success. The site has been vacant since April 2016 when the former retail tenant vacated the space. Supporting information included in the administrative record and reflected in the staff report (CMR 14656) regarding the former tenant, the surrounding land uses, the site’s proximity to other retail locations, and efforts to lease the space support the conclusion that a permitted retail or retail-like use is not viable in this space at this time.

2. The proposed use will support the purposes of the zoning district and Comprehensive Plan

The proposed Animal Care use is consistent with the allowed uses within the Neighborhood Commercial comprehensive plan land use designation and is a permitted use within the

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Commercial Downtown Neighborhood (CD-N) zone District.

3. The proposed use will encourage active pedestrian- oriented activity and connections

The proposed use encourages active pedestrian -oriented activity and connections that are conducive to retail uses. Specifically, animal care encourages pet owners to walk their pet to provide services and can serve as a draw to other nearby retail or retail-like spaces.

SECTION 4. Retail Waiver Request Granted. A retail waiver request is granted for the project by the City Council under Palo Alto Municipal Code Section 18. 40.180(c), effective August 26, 2022 and subject to the conditions of approval in Section 5 of this Record of Land Use Action.

SECTION 5. Conditions of Approval.

1. CONFORMANCE WITH APPROVED USE. This approval allows for a waiver for the retail preservation ordinance for the proposed animal care use within a 4,200 square foot portion of the existing tenant space, which has been determined to meet the City’s criteria as an approved Alternative Active Viable Use. Any future use of this tenant space for a land use that does not meet the definition of retail, retail-like, or animal care, as defined in Chapter

18.04 of the municipal code would require a subsequent retail preservation waiver. This approval does not allow for a retail preservation waiver for the portion of the building that is currently occupied by a retail use (Walgreen’s Pharmacy).

2. SITE MODIFICATIONS. This project does not include approval of any changes to the building or site. Any future changes to the building or the site would be subject to applicable approvals and permits in conformance with all applicable regulations depending on the scope of the proposed work.

3. SIGNAGE. This approval does not include any signage or modifications to the approved signs on site. New signage or modifications to existing signage would be required to submit for a separate review and approval by the Planning Department.

4. PERIMETER MAINTENANCE. The tenant shall have a staff member patrol the public area on the adjacent Tower Well site once every 24 hours to clean up any waste left by pets. The tenant shall provide reminders within the waiting room for clients to clean up after their pets as well as make bags available for cleanup.

5. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

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SECTION 6. Term of Approval . Retail Waiver Request Approval . In the event that the tenant space is not occupied within one year of the date of council approval, the approval shall expire and be of no further force or effect, pursuant to Palo Alto Municipal Code Section 18.77.090. Application for a one-year extension of this entitlement may be made prior to the expiration. A wr itten request for a one-year extension shall be submitted prior to the expiration date in order to be considered by the Director of Planning and Development Services.

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:
_________________________ ____________________________ City Clerk Director of Planning and
Development Services

APPROVED AS TO FORM:

___________________________
Assistant City Attorney

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215/217 Alma Street; Application #22PLN-00164

August 24, 2022
Richard Hackman
530 Emerson Street
Palo Alto, CA 94301

Subject: 215/217 Alma Street Retail Preservation Waiver Determination 22PLN-00164

Dear Mr. Hackman,

In accordance with Palo Alto Municipal Code Section 18.40.180(c), your request for a waiver from the City's retail preservation ordinance to allow an Alternative Viable Active Use (animal care use) for a 4,200 sf portion of the property at 215/217 Alma Str eet has been tentatively approved with conditions, as shown in Attachment A. This determination will be placed on the City Council's September 12, 2022 consent calendar agenda. If three or more council members vote to pull the item from the consent agenda, you will be notified of a future public hearing regarding your request. If approved on the consent agenda, this decision will be final.

This determination is based on information provided to the City, including effort over the last seven years (since October 2015) to lease the property, information regarding the former tenant, the surrounding land uses and the site’s proximity to other retail locations. The City also noted that the most recent tenant, a retail use (The North Face), discontinued their lease in April 2016 after 24 years at the site in order to occupy a retail space at Stanford Shopping Center. The proposed Animal Care use is consistent with the allowed uses within the Neighborhood Commercial comprehensive plan land use designation and is a permitted use within the Commercial Downtown Neighborhood (CD-N) zone District. The proposed use encourages active pedestrian- oriented activity and connections that are condusive to retail uses.

In accordance with PAMC 18.40.180(c)(1)(B), the Director may issue a tentative decision to approve a retail waiver for an Alternative Viable Use based on a findings that he permitted retail or retail-like use is not viable; the proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian - oriented activity and connections. Based on the aforementioned information, the undersigned finds retail and retail-like uses are not viable within this tenant space at this time and that the proposed animal care use supports the purposes of the zoning district and Comprehensive plan land use designation and encourages pedestrian-oriented activity. No modifications to the building are DocuSign Envelope ID: 1B62D501-DCEA-4357-9BFB-F05C36381903

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215/217 Alma Street; Application #22PLN-00164

proposed as part of the proposed project. Any physical modifications to the site proposed by Modern Animal in the future would be required to comply with the other applicable provisions of the municipal code and be consistent with the City's Comprehensive Plan.

If you have any questions regarding this determination, please do not hesitate to contact me.

Sincerely,

Jonathan Lait
Director of Planning & Development Services
Attachment A: Conditions of Approval
DocuSign Envelope ID: 1B62D501-DCEA-4357-9BFB-F05C36381903

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215/217 Alma Street; Application #22PLN-00164
Attachment A:

Conditions of Approval (215/217 Alma Street; 22PLN-00164)

1. CONFORMANCE WITH APPROVED USE. This approval allows for a waiver for the retail preservation ordinance for the proposed animal care use within a 4,200 sf portion of the existing tenant space, which has been determined to meet the City’s criteria as an approved Alternative Active Viable Use.Any future use of this tenant space for a land use that does not meet the definition of retail, retail-like, or animal care, as defined in Chapter 18.04 of the municipal code would require a subsequent retail preservation waiver. This approval does not allow for a retail preservation waiver for the portion of the building that is currently occupied by a retail use (Walgreen’s Pharmacy).

6. PERMIT EXPIRATION. The project approval shall be valid for a period of one year from the original date of approval. In the event that the proposed use does not occupy the space within a period of one year within the time limit specified above, the approval shall expire and be of no further force or effect. A written request for a one-year extension shall be submitted prior to the expiration date in order to be considered by the Director of Planning and Development Services.

DocuSign Envelope ID: 1B62D501-DCEA-4357-9BFB-F05C36381903

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1 Date: April 15, 2022

From: Modern Animal

To: City of Palo Alto

Subject: Cover Letter for Application for Retail Preservation Ordinance Waiver at 217 Alma Street, Palo Alto, CA

To Whom It May Concern:

I hope this letter finds you well. I’m writing to you today regarding our application for a retail preservation ordinance waiver at 217 Alma Street. This letter is intended to provide context and supporting information for our request that a retail preservation ordinance waiver be granted for Modern Animal use of the site. Below is information as to why we believe this is an appropriate action that’s in the best interest of the community.

Site
Modern Animal is proposing to occupy the vacant space at 217 Alma Street, Palo Alto, CA. This building is commonly referred to as the “former North Face store .” 217 Alma Street was home to the North Face store from March 1, 1992 until April 30, 2016 when North Face left the site for a space at Stanford Shopping Center. Since April 30, 2016 the building as remained vacant.

The total size of 217 Alma Street is 7,771 square feet. There are eight parking spaces on-site.

About Modern Animal
Modern Animal is a membership based general practice vete rinary care provider that has enhanced both the consumer and practitioner experiences by making meaningful improvements in veterinary technology and design. Pet ownership continues to skyrocket, and a Modern Animal location at 217 Alma Street will provide meaningful benefits to Palo Alto residents.

A Modern Animal clinic will:
• Offer high-quality pet care to an area with meaningful pet ownership. • Enhance the look and feel of the building at 217 Alma Street, which now sits vacant. • Generate new pedestrian activity in the area which is essential for vibrant retail. • Provide a new general practice veterinary clinic for canine and feline veterinary services including wellness, procedures, dental and urgent care.

A Modern Animal clinic will not:
• Provide any boarding or kenneling of any pets overnight. • Serve as an animal hospital. Modern Animal partners with select animal hospitals and will refer patients, if required.
• Have staff at the facility overnight.

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2 • Host special events or other things not normally associated with a veterinary clinic.

The estimated number of patients to be present at any given time is approximately eight.

Patients will visit for individual appointments which are spread evenly throughout the day .

Appointments typically last 30-45 minutes.

Standard hours of operation are 8:00 AM to 6:00 PM Monday through Sunday. S taff typically arrives about 45 minutes prior to opening (7:15 AM) and leaves about 60 minutes after closing (7:00 PM).

Below are a few pictures of existing Modern Animal locations that give you a sense of what they look like:

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3 As demonstrated in the above pictures, Modern Animal locations present a clean, modern look.

Zoning
217 Alma Street is zoned Commercial Downtown District -Neighborhood with a Pedestrian Shopping Combining District , or CD -N (P). Palo Alto Municipal Code section 18.18 titled Downtown Commercial District governs the zoning for this site. According to Table 1 contained within Palo Alto Municipal Code Section 18.18.050, animal care, excluding boarding and kennels, is a permitted use at this site, however, because of the retail preservation ordinance, Modern Animal is not permitted to occupy the site without a waiver, despite being a permitted use.

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4 Retail Preservation Ordinance Waiver
Palo Alto Municipal Code Section 18.40.180 governs the retail preservation ordinance, including the waiver process. There are two grounds on which an applicant can apply for a retail preservation ordinance waiver: Economic Hardship or Alternative Viable Active Use, except in GF or R combining districts.

Under the Economic Hardship waiver, “An applicant may request that the requirements of this section be adjusted or waived based on a showing that applying the requirements of this section would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property.”

Under the Alternative Viable Active Use waiver, “Except in the GF or R combining districts, an applicant may request that the req uirements of this Section be adjusted or waived based on a showing that: the permitted retail or retail -like use is not viable; the proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections.”

Since 217 Alma Street is zoned CD-N (P), and therefore doesn’t include either a GF or R combining district, it’s permitted to apply for an Alternative Viable Active Use waiver for this site.

Case for Retail Preservation Ordinance Waiver
Modern Animal is applying for a retail preservation ordinance waiver under the alternative viable active use clause.

The Palo Alto Municipal Code states the following, “Alternative Viable Active Use. Except in the GF or R combining districts, an applicant may request that the requirements of this Section

18.40.160 be adjusted or waived based on a showing that: the permitted retail or retail -like use is not viable; the proposed use will support the p urposes of the zoning district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections.”

As stated above, there are three primary requirements to obtaining a retail preservation ordinance waiver under the alternative viable active use clause.

1. Demonstrating that the permitted retail use is not viable.

2. Demonstrating that the proposed use will support the zoning district and comprehensive plan.

3. Demonstrating that the proposed use will support pedestrian activity.

Regarding the first point, demonstrating that the permitted retail use is not viable, there is strong evidence to support the conclusion that retail use is no longer viable at this location. The most telling sign is the length of vacancy at this site. As of April 30, 2022, this site will have been vacant for six years, despite being actively listed on the market.

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5 The challenges with leasing this space include but are not limited to: 1) its direct competition with Stanford Shopping due to its close proximity as evidenced by North Face moving there; 2) its location set back from a main retail corridor; and 3) the overall shift within the retail industry from a focus on brick & mortar to online sales. Additionally, the COVID-19 pandemic has brought additional uncertainty to the retail market which only makes identifying and signing prospective tenants for the space more difficult.

Regarding the second point, demonstrating that the proposed use will support the zoning district and comprehensive plan, Modern Animal is a perfect candidate to occupy this space . T he proposed use will support t he purposes of the zoning district and comprehensive plan land use designation by providing a valuable community service (i.e. veterinary care) that also generates new retail and pedestrian activity.

Regarding the third point, demonstrating that the proposed use will support pedestrian activity, the proposed use will encourage active pedestrian-oriented activity and connections as Modern Animal will be operating a business that will bring a significant number of customers to the location each day that can then shop at other nearby retailers. Additionally, because many of the veterinary customers will be dog owners, there is a stronger than usual likelihood that customers will access the location by walking, which is great for retail.

We feel that Modern Animal is a perfect tenant for 217 Alma Street based on the above criteria.

Our occupancy of the site will remove a vacant building from the community and bring new life to the site with a community serving use. Additionally, Modern Animal will help achieve the objectives of both the zoning code and comprehensive plan by facilitating pedestrian orientated activity that supports the overall retail landscape of downtown Palo Alto.

Conclusion
According to the American Society for the Prevention of Cruelty to Animals (ASPCA) , more than 23 million American households, nearly one in five, adopted a pet during the COVID-19 pandemic.

The result of that is an increased need for veterinary care across the United States, and Modern Animal is doing our part to address that need.

Part of the reason we are s o interested in expanding to Palo Alto is because of how much this community values their pets. Palo Alto ’s long history of investing in pet and animal care is well documented and our hope is that Modern Animal can be the next chapter in that history. We truly believe that this proposal is a win -win-win-win in that our use of the site will help the City of Palo Alto by re-tenanting a long vacant building, the retailers of Palo Alto by bringing new life and customers to a currently vacant site, the residen ts of Palo Alto by providing a much needed community service and, of course, the pets of Palo Alto by ensuring they get the high -quality veterinary care they deserve.

Granting this waiver and allowing Modern Animal to occupy 217 Alma Street represents an amazing opportunity for everyone involved and we couldn’t be more excited about the chance to expand into Palo Alto.

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6 In advance, thank you for your time and consideration of this application. If there is any additional information you would like from us, we are happy to provide it. Thank you again and please let us know if you have any questions.

Respectfully,

Joe Pantano
Head of Real Estate & Development, Modern Animal

Attachments: Modern Animal Slide Deck
Modern Animal Plan Set Drawings for 217 Alma Street

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Palo Alto
Water Tower
(Open Space)
Step
(Business)
Space For Lease
(Business)
Peninsula Open
Space Trust
(Non-Profit)
Newmark
(Business)
ULU Ventures
(Business)
Vacant or
Unclear Use
Vacant or
Unclear Use

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1 Premier Properties
539 Alma Street
Palo Alto, CA 94123

Date: June 22, 2022

From: Premier Properties

To: City of Palo Alto

Subject: Letter from Premier Properties on Modern Animal’s Retail Preservation Ordinance Waiver Application

To Whom It May Concern,

My name is Brad Ehikian and I’m with Premier Properties. We represent and manage the property located at 217 Alma Street, Palo Alto, CA. This letter is intended to provide the City of Palo Alto with additional information in support of Modern Animal’s application for a retail preservation ordinance waiver at 217 Alma Street.

Background
In May 2022, Modern Animal submitted their application for a retail preservation ordinance waiver at 217 Alma Street. 217 Alma Street is commonly referred to as the “Former North Face Store” or “Former North Face Site,” as this building was home to a North Face store from March 1, 1992 until April 30, 2016, when North Face left the site for a space at Stanford Shopping Center.

The total size of 217 Alma Street is 7,771 square feet and there are eight parking spaces on-site.

Since April 30, 2016 , the approximately 4,200 square foot portion of the building that Modern Animal is seeking to occupy has remained vacant. The remaining approximately 3,500 square foot portion of the building has been occupied by Walgreens RX since January 2018. This location is used primarily for prescription refills and does not include the retail components traditionally found at a Walgreens.

Leasing History
Aware of the impending departure of the North Face store, we started marketing this site for retail tenants in October 2015. Almost immediately, the reasons why the North Face left became the same challenges to re-tenanting the space: a lack of pedestrian f oot traffic and a lack of parking.

For example, in September 2016 a restaurant group approached us and was interested in leasing the entire 7,771 square foot space for a restaurant use. Since restaurants require more parking than traditional retail, the City of Palo Alto told us that we would have to fully park the space for a restaurant to occupy it. So we developed a plan to install a 32 car mechanical parking system.

However, to install a 32 car mechanical parking system for the restaurant, we would have had to

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2 demolish a portion of the building to make space. But because this building is subject to the retail preservation ordinance, we weren’t permitted to remove any portion of the building , even if it was to facilitate the addition of parking for a retail restaurant use. Further complicating matters, because 217 Alma Street is not a part of Palo Alto’s downtown parking assessment district, there is no way to satisfy the parking requirement off -site in Palo Alto’s downto wn garages. This ultimately led the restaurant group to walk away from this site, and the same requirements have dissuaded other prospective restaurant tenants as well.

Another example, in May 2018 we signed a lease with a company that wanted to open a float station studio in the approximately 4,200 square foot portion of the building that Modern Animal is seeking to occupy. For the next 16 months, the float station studio worked with the City of Palo Alto on their conditional use permit (CUP) application, which was necessary for them to occupy the space. That CUP was ultimately granted by the City of Palo Alto in September 2019.

From September 2019 to March 2020, the float station studio worked on obtaining their building permit for the space, however, as we all know, in March 2020 the COVID -19 pandemic struck which caused major upheaval in the brick & mortar retail space that was already undergoing a shift due to the success of online retail. Recognizing the uncertain future, the float station studio handed back the keys and walked away from their lease in Spring 2020.

These two examples illuminate the different types of challenges we’ve faced trying to re -tenant the space with a conforming retail use. In the first example, the use conformed but because i t was a restaurant, the use required additional parking. We attempted to install that parking but were prevented from doing so as the installation of the parking would have required the demolition of a portion of the retail space, which is protected.

In the second example, we actually leased the space and had a tenant working on their building permit to occupy the space, but they walked away from the deal after the COVID -19 pandemic struck. While these are just two examples, they reflect the general mix of challenges that exist in leasing this space for retail use.

Just to give you a sense of who has shown interest in this space, below is a n image of our tour log since 2019:

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3 As the above table demonstrates , t he space that Modern Animal is seeking to occupy is not vacant for a lack of trying. It’s vacant due to a combination of both the current brick & mortar retail environment and City of Palo Alto requirements.

It should also be noted that when we had this site listed there was not a required minimum rental rate associated with the vacant space . Since 201 5 we have been open to a variety of deal structures and rates but, despite that, we have still struggled to find an interested and code compliant tenant.

When Modern Animal came to us in July 2021 and said they would like the space, we immediately began working on a lease. Once that was completed, Modern Animal then began the process of preparing an application for a retail preservation ordinance waiver to occupy the space. Despite the need for a retail preservation ordinance waiver, we believe Modern Animal reflects what Palo Alto residents want as a part of their business community and presented a unique opportunity that would be openly embraced. So far that has proved true, as the reception to the prospect of this site being used for animal care has been very positive thus far.

Additional Considerations
Another thing to note is that with the retail preservation ordinance in effect, and animal care services unable to occupy formerly retail sites unless they have a waiver , there are extremely limited options within the city for where an animal care facility can be located, making the ability

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4 of new animal care providers to serve Palo Alto much more difficult t han many people realize.

According to an American Society for the Prevention of Cruelty to Animals (ASPCA) article published in May 2021, “close to one in five households acquired a cat or dog since the beginning of the COVID-19 crisis, which would account for approximately 23 million American households based on the 2019 U.S. Census.”1

Due to Palo Alto’s restrictive zoning code, finding places to locate the animal care services necessary for all of the pandemic cats and dogs is proving extremely difficult. When you really dig-in on this issue, the retail preservation ordinance has effectively resulted in a moratorium, or close to it, on new animal care facilities in the city. This is especially true if someone seeks to open an animal care facility in the city’s most retail heavy areas such as downtown.

Additionally, it’s important to highlight is that Modern Animal is not asking for the base zoning to change. Rather, Modern Animal is asking for retail preservation ordinance waiver. This is important to highlight because animal care, such as that being proposed by Modern Animal, is a permitted use on this site. Therefore, Modern Animal isn’t asking for something that’s incompatible with the existing environment, rather they’re just asking to change from one permitted use (retail) to another permitted use (animal care). If this building had been previously occupied by a permitted non -retail use, there would be no zoning issue with Modern Animal occupying the space.

In closing, we’d just like to reiterate that we have been actively trying to lease this space since 2015. We’ve been active, not passive, in our efforts to re-tenant this space but a range of factors has made accomplishing that difficult. We hope this additional information has been helpful and informative. If there is any additional information we can provide you please let us know. We are happy to do so.

Thank you for your time.

Respectfully,

Brad Ehikian
Premier Properties

1 ASPCA article Link: https://www.aspca.org/about-us/press-releases/new-aspca-survey-shows-overwhelming- majority-dogs-and-cats-acquired-during

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City of Palo Alto (ID # 14722)
City Council Staff Report
Meeting Date: 9/12/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: PUBLIC HEARING: Adoption of a Resolution Confirming the Weed Abatement Report and Ordering the Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein From: City Manager
Lead Department: Fire Department

RECOMMENDATION
Staff recommend s C ouncil (1) hold a public hearin g t o hea r and consider objection s from affected propert y owne rs of proposed assessments related to completed weed abatement work, and (2) ad opt the attached resolution confirmin g the report and orderin g abatement costs to be a special assessment on the properties specified in the report.

BACKGROUND
The Weed Abatement Division of Santa Cl ara County Agriculture and Environmental Management administe rs th e contract for weed abatement within the Cit y of Palo Alt o, in accordance with an agreement established on April 18, 1977, between the City and County.

On January 24, 2022, in accordance with Palo Alto Municipal Code Chapter 8.08, the City Council declared weeds to be a nuisance and ordered that the nuisance be abated. A public hearing was held on February 28, 2022, to consider objections to the proposed destruction or removal of the weeds. No objections were noted. Once the above steps had been taken, the County Weed Abatement Division instructed its contractor to abate weeds on City and private properties within Palo Alto. That work has now been completed. Property owners were notified the third week in January 2022 that weeds were to be abated by April 30th, 2022, either by the owners or by the County. If the property owners chose to have the County abate the weeds, the abatement charges would be levied against the respective properties as an assessment by the County Assessor. The County has since informed the property owners of the costs for destroying and removing the weeds.

The City Clerk has published the required notice of this hearing in the Palo Alto Weekly. The
cost report by the County Weed Abatement Division has been posted on the City Hall Plaza bulletin board for ten (10) days prior to this hearing.

DISCUSSION
14 Packet Pg. 142
City of Palo Alto Page 2
Property owners may object to the charges for weed abatement being levied against their properties. The charge consists of the contractor’s cost , plus 150 percent administrative charges, in accordance with Palo Alto’s contract wit h Santa Clara County (CMR #7527, December 12, 2016 <http://www.cityofpaloalto.org/civicax/filebank/documents/55172>).

A representative from the County Weed Abatement Division will be present at the public hearing with the records of weed abatement that ha ve taken place. Should there be any modifications in the proposed assessments as a result of the hearing; changes in the assessment spread will be made as necessary. After any recalculations are completed, and Council adopts the attached resolution confi rming the abatements and ordering those costs to be imposed as liens on the abated properties, the assessments will be submitted to the County Assessor for entry on the October tax roll upon which general City taxes are to be collected.

RESOURCE IMPACT
There is no direct fiscal impact of this action to the City. The assessments identified on Attachment “A” of the resolution , totaling $71,983.94, will be imposed as liens on the properties listed and will not be borne by the City.

POLICY IMPLICATIONS
This procedure is consistent with existing City policies.

STAKEHOLDER ENGAGEMENT
The entire weed abatement program is coordinated by the Santa Clara County Department of Agriculture and Environmental Management. Coordination includes contracts, inspections, nuisance reports/lists and fees.

ENVIRONMENTAL ASSESSMENT
The Santa Clara County Counsel has determined the Weed Abatement Program to be Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15308.

Attachments:
• Attachment14.a: Attachment A: Resolution Confirming Weed Abatement 14 Packet Pg. 143
*NOT YET APPROVED*
1005_20220803_th20 1

Resolution No. _____
Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein

R E C I T A L S

A. The Council of the City of Palo Alto has heretofore declared weeds growing on certain properties within the City to be a public nuisance by Resolution No. 10014, dated January 24th, 2022 and

B. The Council on April 4th, 2022, did adopt Resolution No. 10020 thereby ordering the weed nuisance abated; and

C. Subsequent to the giving of said notice, the Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has caused to be abated the weeds on the herein described properties; and

D. The Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has filed his report and assessment list for weed abatement as provided by law and a hearing has been duly set and noticed, for objections to said report and assessment list and for confirmation; and

E. The Council has duly considered the report and assessment list and any objections thereto.

NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:

SECTION 1. The report and assessment list is in all respects complete and correct and is hereby confirmed. The amounts of the cost for abating the nuisance are confirmed and those remaining unpaid, as shown on Exhibit “A” attached hereto and incorporated herein, shall constitute special assessments against the respective parcels of land and are a lien on the property for the amount of the respective assessment.

SECTION 2. All written or oral protests or objections to said report and assessment list are overruled or denied.

SECTION 3. The unpaid assessments shown on Exhibit “A” shall be entered upon the 2022-2023 tax roll against the parcels of land and shall be collected at the same time and in the same manner as general City taxes, be subject to the same interest and penalties, and be subject to the same procedure and sale in case of delinquency. All laws and ordinances applicable to the

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*NOT YET APPROVED*
1005_20220803_th20 2

levy, collection, and enforcement of City taxes are hereby made applicable to this special assessment.

SECTION 4
. Santa Clara County has determined the weed abatement program to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15308.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

__________________________ _____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

__________________________ _____________________________ Chief Assistant City Attorney City Manager

_____________________________
Fire Chief

_____________________________
Director of Administrative Services

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TRA2022 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A931 Clara Dr PALO ALTO 94303-40026001Miao Nina Yanti$2,833.40Edgewood16051003-12-002Po Box 60452 PALO ALTO 943066001Hobson Eleanor M Trustee$175.00Lois1362003-38-044170 Iris Way PALO ALTO 94303-30366001Xia Fan And Zhou Yuan$175.00Iris1703003-41-008782 Greer Rd PALO ALTO 94303-30226001Deng Jingjing And Jiang Lijun$175.00Greer7824003-41-065506 Eisenhower St DAVIS 956166001Haley Philip H Trustee & Et Al$1,450.00Channing19385003-42-0391071 Embarcadero Rd PALO ALTO 943036001Nisita N Kothary And Niraj A Shah$175.00Embarcadero10716003-42-05510181 Adriana Ave CUPERTINO 95014-11256001Xiao Zhihua And Chao Shan$175.00Embarcadero10317003-42-0602385 St Francis Dr PALO ALTO 94303-31366001Zadik Yair And Linda$641.00St Francis23858003-48-0212075 Louis Rd PALO ALTO 94303-34526001Keller Jeffrey R$9,225.92Louis20759003-50-021707 Elm St Unit 221 SAN CARLOS 940706001Pillsbury Helen Barkley$1,450.00El Cajon94610003-52-057268 Castro St MOUNTAIN VIEW 94041-12046001Choi Ben Chung-ming Trustee & Et$91.00Embarcadero86411003-56-0021725 Newell Rd PALO ALTO 94303-29516001Agrawal Parag And Agarwala Vineeta$596.00Southampton74212003-59-041260 Byron St PALO ALTO 94301-13076001Liveright Michael$1,450.00Byron26013120-02-030555 Byron St Unit 105 PALO ALTO 94301-13036001L S & Co Partnership$2,540.00Embarcadero65514120-08-023P O Box 156 SOUTH DOS PALOS 936656001Koda Ross K Trustee$1,955.00Ramona73315120-27-063135 Melville Av PALO ALTO 94301-35416001Poppy, James C And Sylvester, Mary$175.00Kingsley12816124-15-0384102 Sutherland Rd PALO ALTO 943034-47306006Yurchenco James R$175.00Sutherland410217127-16-0053951 Sutherland Dr PALO ALTO 94303-47266012Chan Allan Fukwah And Lam$91.00Sutherland395118127-17-0143640 Lupine Ave PALO ALTO 94303-44316001Luu Jane And Ng David M$1,450.00Lupine364019127-21-140Page 1Report Date: 7/26/2022(List Sorted by APN)

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TRA2022 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A530 Showers Dr Unit 7-229 MOUNTAIN VIEW 940406001Sunny Venture Llc$175.00Cork Oak341920127-48-0231011 Bluff Rd GLENCOE 600226001Ramchandran Adesh$91.00Colorado45421132-08-105863 Warren Way PALO ALTO 943036001Tanphaichitr, Saksiri & Bellers,$641.00Colorado46422132-08-1153120 Cowper St PALO ALTO 94306-30016001Valentine Mary E$596.00Cowper312023132-20-1553533 Ramona St PALO ALTO 94306-35496001Tang Dexter Chihung Trustee & Et Al$175.00Ramona353324132-22-097936 N California Ave PALO ALTO 94303-34056001Kaposhilin Nicholas Trustee$641.00Bryant354125132-23-033Po Box 5358 SAN MATEO 94402-03586001Leung John Ka Yu And Joanna Kong$91.00Roosevelt8426132-23-0554039 Scripps Ave PALO ALTO 94306-45356001Liu Jenkuei Trustee & Et Al$175.00Roosevelt7627132-23-0593075 Ponte Morino Dr Apt 107 CAMERON PARK 95682-82906001Simonini Corinne P Trustee$91.00El Dorado17928132-25-0212876 Emerson St PALO ALTO 94306-23506001Hsu Yen-fen Trustee$641.00Emerson287629132-26-006395 Del Monte Ctr Ste 222 MONTEREY 939406001Luca Dario Llc$175.00Emerson288630132-26-00711 Roosevelt Cir PALO ALTO 94306-42176001Qi Feng And Chen Cheng-na$91.00Roosevelt1131132-29-01434 Roosevelt Cir PALO ALTO 94306-42166001Lyons Charles P Trustee & Et Al$91.00Roosevelt3432132-29-06118 Roosevelt Cir PALO ALTO 943066001Bernstein Amir D Trustee$175.00Roosevelt1833132-29-0693780 Wright Pl PALO ALTO 94306-42626001Axelrod Herbert And Fumiko$91.00Wright378034132-30-0173830 Carlson Cir PALO ALTO 94306-42246001Cheng Jing Et Al$91.00Carlson383035132-30-0581700 Space Park Dr. SANTA CLARA 950546001Linda Allen$175.00NullNULL36132-33-060186 Camelia Dr DALY CITY 940156001Ajloun Enterprises Llc$1,486.00Matadero22037132-34-0253675 Park Blvd PALO ALTO 94306-28536001Basler Joshua R$91.00Park367538132-34-045Page 2Report Date: 7/26/2022(List Sorted by APN)

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TRA2022 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A3605 Park Blvd PALO ALTO 943066001Nasir Zulflqar Khan And Shazia Ali$1,486.00Park360539132-34-050180 Park Sharon Dr SAN JOSE 95136-25356001Mahal Jaswinder$1,991.00Park356140132-34-0523024 Ross Rd PALO ALTO 94303-41026001Chase Wilton Llc$91.00Wilton21041132-35-012443 Wilton Ave PALO ALTO 94306-28596001Atashband Bahram$175.00Wilton44342132-35-027215 Wilton Ave PALO ALTO 94306-28556001Godshall Kelvin V Et Al$175.00Wilton21543132-35-042530 Emerson St Ste 150 PALO ALTO 943016001Whpv Alta Locale Llc$175.00El Camino Real275544132-36-084415 Fernando Ave PALO ALTO 94306-28206001Brown Jonathan S And Miriam M$175.00Fernando41545132-39-038389 Matadero Ave PALO ALTO 94306-28336001Mahany Gary W And Kemp Susan A$91.00Matadero38946132-40-05333345 7th St UNION CITY 945876001Zhu Li And Wan Fanny Trustee$1,450.00Park403247132-43-0253130 Ramona St PALO ALTO 94306-29226001Zhimin And Zhu Xinyi Ding$673.00Ramona313048132-48-033613 Stanford Ave PALO ALTO 94306-14126001Baumann John R$680.00Stanford61349137-01-05933206 Falcon Dr FREMONT 945556001Liang Ke$596.00Yale215050137-01-134335 Panoramic Way BERKELEY 947046001Culpepper Benjamin J$2,664.42Wellesley232151137-02-0243028 Scott Blvd Unit C SANTA CLARA 9505460011080capa Llc$91.00College108252137-03-0361289 College Ave PALO ALTO 94306-13456001Stanford Jewish Center Inc$91.00Oberlin201753137-03-0472276 Harvard St PALO ALTO 94306-13516001Bussey Jason M And Sachiko$91.00Harvard227654137-05-0162195 Columbia St PALO ALTO 94306-12336001Edelman Andrea Trustee$175.00Columbia219555137-06-0361380 Miravalle Ave LOS ALTOS 94024-57446022Kss Investment Llc$680.00El Camino Real370056137-11-0783793 La Donna Ave PALO ALTO 94306-31516059Mehta Bijal And Pallavi Trustee$1,486.00La Donna379357137-12-016Page 3Report Date: 7/26/2022(List Sorted by APN)

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TRA2022 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A721 Barron Ave PALO ALTO 94306-31086059Ashworth Darren And Imane$175.00Barron72158137-13-0423890 La Donna Ave PALO ALTO 94306-31566059Zhao Ruxiong And Bai Hua$175.00La Donna389059137-13-0596 Atherton Oaks Ln ATHERTON 940276022Juan Chung-chiung And Su Chen$680.00El Camino Real414660137-24-034567 Maybell Ave PALO ALTO 943066059Wang Yunbing Trustee & Et Al$175.00Maybell56761137-25-134569 Maybell Ave PALO ALTO 943066059Raja Krishnaswamy And Madhu$175.00Maybell56962137-25-135575 Maybell Ave. PALO ALTO 943066059Albert Wu, Sau Ngan Lam & Chiu$175.00Maybell57563137-25-136587 Maybell Ave PALO ALTO 943066059Yibo Xing Ying Yuan$175.00Maybell58764137-25-1374101 Clemo Ave PALO ALTO 943066059Huahui Wu And Chunfang Li$175.00Clemo410165137-25-138135500 Country Way LOS ALTOS HILLS 94022-24386059Richard Yoon And Yuree Soh$175.00Clemo410366137-25-139809 S. Oakland St ARLINGTON 222046059Raina Rosa Tagle And Thomas Neal$175.00Orchard412167137-25-1404123 Orchard Court PALO ALTO 943066059Elizabeth L. Ellie$175.00Orchard412368137-25-1414131 Orchard Ct PALO ALTO 943066059Yuanhui Chen And Yanxing Wang$175.00Orchard413169137-25-1424135 Orchard Ct PALO ALTO 943066059Levon And Mary Budagyan$175.00Orchard413570137-25-1434135 Orchard Ct PALO ALTO 943066059Levon And Mary Budagyan$175.00Orchard413971137-25-1444150 Orchard Ct PALO ALTO 943066059Pramod Cherikumilli And Manju$175.00Orchard415072137-25-1454158 Orchard Ct PALO ALTO 943066059Kai Ye And Chi Qin$175.00Orchard415873137-25-1464168 Orchard Ct PALO ALTO 94306-39606059Sujit Manohar Khale And Nesti Satish$175.00Orchard416874137-25-1474178 Orchard Ct PALO ALTO 943066059Tracey S. Hong And Xiu Mei Luo$175.00Orchard417875137-25-1484188 Orchard Ct PALO ALTO 94306-39606059Debanjan And Amrita Markherjee$175.00Orchard418876137-25-149Page 4Report Date: 7/26/2022(List Sorted by APN)

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TRA2022 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A4130 Donald Dr PALO ALTO 94306-38226022Hsi Hsing-hui$91.00Donald413077137-27-08626 N Euclid Ave PASADENA 911016055Leland Stanford Jr Univ The Bd$1,450.00Hillview346078142-16-059300 Pasteur Dr STANFORD 94305-51326055Leland Stanford Jr Univ Bd$1,486.00Arastradero105079142-16-060150 Portola Rd PORTOLA VALLEY 940256055Leland Stanford Jr Univ Board$1,991.00Deer Creek349580142-16-0623500 Deer Creek Rd PALO ALTO 943046055Leland Stanford Jr University Board$175.00Deer Creek350081142-16-066965 Page Mill Rd PALO ALTO 943046001Leland Stanford Jr University Board$175.00Page Mill100082142-20-0914206 Darlington Ct PALO ALTO 94306-41296001Ferreira Kavitha And Joao Carlos$673.00Darlington420683148-03-03711519 Arroyo Oaks Dr. Los Altos Hills 94024-65516001Bordia Anupam And Surbhi$175.00Park420184148-03-060Monre Dr PALO ALTO 94306-44156015Sehrawat Varun And Prerna$175.00Monroe14885148-06-0014388 Silva Ct PALO ALTO 94306-44226057Yin Jun And Duanmu Lan$175.00Silva438886148-12-0283516 Bajamont Way CARMICHAEL 956086022Stone Virginia A And Bradley K$175.00Arastradero63387167-06-016639 Arastadaro Rd PALO ALTO 943066022New Atlantis Llc, A Delaware Limited$175.00Arastradero63988167-06-06312 Star Way MOUNTAIN VIEW 940406001Bachrach Sylvia Rashmi Trustee & Et$1,955.00Oak Hill417989175-01-02512 Starr Way MOUNTAIN VIEW 940406001Bachrach Sylvia R Trustee$1,486.00Oak Hill416990175-01-026Po Box 1667 PALO ALTO 943026001Tlt Llc$641.00Mesa84991175-01-037515 S Flower St Floor 25 LOS ANGELES 900716001Weakland Alan Trustee & Et Al$2,698.00Manuela424392175-02-053Po Box 60065 PALO ALTO 943066020Smithwick Alton D And Ursula L$4,067.00Old Trace410393175-20-0783404 Mount Baker Dr. Austin 78731-57256020Joshi Vivek Trustee & Et Al$596.00Mockingbird89094175-20-082609 Arboleda Dr LOS ALTOS 940246020Waters Christopher J Trustee & Et Al$680.00Old AdobeNULL95175-20-092Page 5Report Date: 7/26/2022(List Sorted by APN)

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TRA2022 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A4150 Old Adobe Rd PALO ALTO 94306-37266020Hao Hsieh T And Ming C Trustee$91.00Old Adobe415096175-20-105673 Maybell Ave PALO ALTO 94306-38176020Vilkin Peter D Trustee$91.00Old Adobe415597175-20-1103000 Alexis Dr PALO ALTO 94304-13036039Palo Alto Hills Golf And Country$596.00Alexis300098182-35-0353130 Alexis Dr PALO ALTO 94304-13056039Von Clemm Peter F And Jennifer J$91.00Alexis313099182-43-024951 Laurel Glen Dr PALO ALTO 94304-13236039Bogerty Sharon D$4,428.20Laurel Glen951100182-49-004$71,983.94TOTAL

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Palo Alto City CouncilSeptember 12, 2022

Palo Alto City Council
September 12, 2022