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Minutes, special meeting, second session

Palo Alto City Council
October 17, 2022

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Minutes, special meeting, second session
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October 17, 2022
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Palo Alto City Council
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CITY COUNCIL

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Special Meeting
October 17, 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, DuBois, Filseth, Kou, Stone, Tanaka Present Remotely: Cormack

Absent: None

Special Orders of the Day

1. Cybersecurity Awareness Month Proclamation
Information Technology Director Darren Numoto explained Cybersecurity Awareness Month. Tips included thinking before clicking links in emails and text messages, u pdating soft ware, using strong passwords , enabling multifactor authentication , and not giv ing out personal information.

Information is available at CISA.gov and staysafeonline.org.

ACTION: Proclamation Issued
Study Session

2. 3400 El CAMINO REAL [22PLN -00227]: Request for Prescreening of the Applicant's Proposal to Rezone the Subject Site f rom Various Zoning Districts to Planned Housing Zone (PHZ) to Allow Construction of 382 Residential Rental Units (44 studios, 243 one -bedroom, 86 two -bedroom and 9 three-bedroom units) in two Buildings. Enviro nmental Assessment:

Not a Project. Zoning District: CS, CS(H), RM -20 (Service Commercial, Hotel, Multi-Family Residential).

Planning & Development Services Director Jonathan Lait stated there would be no formal action at the current meeting . The applicant will be given the opportunity to present to the Council and it will be determined whet her or not they can proceed.

Planning & Development Services Planner Garre tt Sauls presented a project overview. The project deviates from th e code in terms of a height increase,

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increased floor area ratio ( FAR), waiver from impact fees, and a request for a zero -foot build-to line on El Camino Rea l. The applicant proposes to proceed with Option 1 for me eting the 20- percent affor dable unit ratio requirement, provide 382 rental units, retain 4000 ft 2 of retail space, and redesign the area where Matadero Creek is currently located to provid e a meandering path for the public. If a formal application is filed, Staff would need to evaluate impact on the creek, impact of added vehicles on El Camino and Matadero Avenue , impact on the environment including California Environmental Quality Act (CEQA) analysis, architectural elements including massing and privacy of adjacent properties, and financial con siderations related to loss of Transient Occupancy Tax (TOT) for retail space. Staff recommended conducting a study session on the prescreening application and providing comments to the applicant.

Staff answered questions from Mayor Patrick Burt . T here are 136 hotel rooms at Creekside. The estimated TOT revenue loss wou ld be $300,000 to $1.3M. Existing square footage of retail is 8,735 ft

2. For workforce housing,
the area median income ( AMI) for a 1 -bedroom is 5 percent at ever y level:
very low income, low income, moderate, and above moderate. For a 2 - person household, the income is $67,4 00 for very low income , $105,400 for low income, and $161,750 for moderate income.

Council Member Tom DuBois asked about the frequency of bus service i n that area. Director Lait said bus service meets the 15-minute headway standard for morning and evening peak times.

Council Member Greer Stone asked what the setback is for creeks. Staff responded construction within 20 feet of the creek bank is prohibited. There can be an exception if geotechnical analysis determines stability of the slope without reinforcement.

Vice Mayor Lydia Kou asked if the applicant has indicated how many bedrooms are in each of the below market rate (BMR) units. Planner Sauls said the BMR program requires they be a representative mix of size and unit types. Retail space would be in Building A along El Camino Real.

Mayor Burt invited the applicant to speak.

The applicant stated items need ing to be studied before moving the project forward in a formal applica tion include public works, the creek, emergency response, transport ation, utilit ies, GreenWaste , environmental st udies, trees, and traffic and t hey would need to go through the A rchitectural Review Board . They need to determine building h eights and setbacks and project feasibility.

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Public Comment

1. Winter Dellenbach spoke on behalf of Gerry Masteller, Mary Sylvester, Fred Balin, and Andie Reed . A housing proposal fo r th e Creekside property is welcomed but the current proposal is not appropriate. She voiced safety concerns along the safe b iking route along Matadero should the development be built. Either the proposed entrance on Matadero or the saf e biking route should be removed.

Parking on the streets would increase and residential preferential parking ( RPP) would be needed in the Barron Park and Ventura neighborhoods. Developers should not gain parking fees when a 20 - percent inclu sionary set -aside is part of the swap to be granted a lucrative PHZ zone change. Ms. Dellenbach highlighted the incursions to the c reek by the proposed development. A new tree ordinance may determine what trees could be removed and what they would be replaced with. The Driftwood Market move should be subsidized by the developer.

2. Stephen Levy said the Planned Housing Zone (PHZ) has succeeded in bringing forth 4 proposals that respond directly to HCD’s request that sites have proof of interest. He asked the Council to give pos itive feedback to the prescreening. The project brings benefits in terms of number of units and location with access to jobs, shopping, services, amenities, and transit.

3. John King, president of the Barron Park As sociation, said t he community supports and loo ks forward to the addition of new housing but the proposed project does not seem feasible. It is out of scale and would present density -related environmental and traffic problems. There are concerns about a 2-level parking structure being built next to Matadero creek. The EIR should look into transportation and sewer capacity analysis as well as arborist, w ildlife, historic report, geotech, etc. Driftwood Market is important for the neighborhood and there is concern about its preservation. There are concerns about lost TOT, the Matadero safe route to school , parking along Matadero A venue, and open spaces to play in the proposed complex.

4. Kelly Stafford , a 4 th generation Palo Alto resident who resides 2 blocks down from Creekside Inn on Matadero , sp oke on behalf of Rebecca Sanders, Leigh Cambra, and Stephanie Enos . She stated there is a need for 2 and 3-bedroom homes instead of studios and 1- bedroom units to a ttract families to stay in the community.

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Affordable housing is needed to keep pe ople in the area where they work.

5. Arthur Liberman, Barron Park resident, welcom ed housing along El Camino but said it mu st serve the needs of the City such as workforce housing and affordable housing . The Council should commission a coordinated area plan. Redevelopment is needed in the area. He said co herence, foresight, and planning are needed by the City.

6. Liz Gardner was thrilled for an initial plan for rental housing. She said the 20- percent BMR housing i s doable but she would like to see sustainable integration like EV charging stations and solar. She asked why there were so few 3 -bedroom units and so many 1 -bedroom units. Interior a menities are lacking. The Driftwood De li could be integrated into the overall design. She encouraged having an integrated community.

7. Bill Ross said the D riftwood Market is critical to the Council’ s evaluation of the project. He voiced concer n over m itigation of the Stanford toxic plume. The evacuation routes under SB 99 need to be further delineated. There ne eds to be an undergrounding of ut ilities associated with the project. Policy implications of replacing existing profitable retail and the hotel with housing should be considered. The creek analysis will involve a stream alteration permit from the Department of Fish and Conservation and environmental analysis needs to be extensive.

8. Tanya Gupta voiced strong opposition to the prescreening r equest.

The location is not suitable for a project of this magnitude and it would disrupt the character of the quiet community. She emphasized that the pr oposal has extensive opposition from the residents of Barron Park. Matadero Avenue needs to remain a s afe rout e to school. The elimination of Driftwood and Creeksi de would be a true loss in an area lacking in retail. The proposed massive apartment complex would deteriorate the qualities that make Barron Park beloved.

9. Erica Valentine of Local 393 whose 3,100 members live in San ta Clara and San Benito Counties voiced excitement about the project but asked the developer to consider using a local skilled and trained workforce an d ensure the construction project utiliz es responsible construction methods.

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10. Amie Ashton spoke on behalf of Palo Alto Forward. The proposed site is already designated as a major site for housing with in the Housing Element with proximity to jobs, re tail, services, transit, and bike routes. The proposal exceeds the retail space requ irement allowing for potential occupation by Driftwood Market or other retail uses. She urged the Council to provide feedback to the applicant and al low the project to proceed to the formal application stage.

11. Cedric Pitot de L a Beaujardiere, resident of B arron Park, supported additional housing but said the project is too large for the site. He estimated the project would increase the population of Barron Park by 15 to 30 percent. Traffic would further back up at the stoplight at Matadero Avenue. He questi oned how the developer would fit 260 trees on the site. Th e City should be clear on the requirements for planting trees. The upstream portions of Matadero Creek shoul d be protected. Losing Driftwood Deli would be a big loss to the neighborhood.

12. Jonas Stafford, a long -time resident, said s maller projects are more in line with the community but are not moving forward. He suggested the Council revisit their decision from 2020 regarding planning and zoning for family neighborhoods and then turn down the c urrent proposed project.

13. Christine Stafford grew up in Barron Park and still resides there.

Home prices are out of reach for most people working in the area.

Low-income housing is needed. Only one project has taken advantage of the Affordable Housing Zone approved in 2018. The project ignores the 20 -foot setback from the street which the City enforced for her garage expansion.

14. Mircea of 572 Chimalus lives behind the fence of Creekside In n. He voiced support for affordable housing but was strongly opposed to the project because of the size, height, and number of units. He said Building B should be a park, an open space. Fee reduction should not be allowed. A 1-acre park should be donated to the City.

15. Bob Moss did not object to housi ng along El Camino but stated the developer is ignoring existing zoning , neighborhood compatibility, traffic, and parking. He asked that the project not be approved. A 2- level underground garage is impractical for the 14 to 16 -foot aquifer.

The project violates the density, the 50-foot height limit, the 35 -foot height limit along El Camino, FAR, and units per ac re. A project is needed that complies with the Comprehensive Plan, the zoning, and

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the El Camino design guideli nes. This project is ½ mile away from El Camino and Page Mill , the most congested inter section in Palo Alto .

This project should be scaled back and meet the comprehensive plan of the zoning ordinance.

Mayor Burt invited the applicant to respond.

The applicant stated this is a process where the constructive ideation and criticism is used to make the p roposal better and they look forward to the Council’s questions and answers.

Mayor Burt said there would be no motions . Council members were invited to share their thoughts and ask questions.

Vice Mayor Kou a sked f or a definition of workforce. Director Lait said workforce housing is defined in the Workforce Housing Overlay as being at 140 and up to 150 percent of the AMI. Workforce is also mentioned in the guiding document for Planned Home Zoning and defined as above . Vice Mayor Kou asked for a definition of the income level for the 140 to 150 percent AMI. Director Lait said approximately $188,720 is 140 percent AMI for a household of 2. Vice Mayor Kou said this is not reachable for janitors, electricians, gardeners, and some teachers. Vice Mayor Kou would not compare the development to Wi lton Court. For the developer to ask for waivers is unconscionable. Driftwood Mar ket and Cibo are longtime businesses in Barron Park and good ne ighbors. There was very little regard for youth in land use and planning. She suggested insisting on more park and open space . Parking along both sides of Matadero would cause congestion as the road is so narrow. She ag reed with the public comment about SB 99 being important for emergency vehicle access.

Mayor Burt would not consider waiving impact fees for a market rate housing project or commercial pro ject as these fee s are ne cessary to invest in infrastructure of parks and public facilities necessary to support increases in population. Resources are not available to lose the hotel tax as well as subsidize market -rate developers. Mayor Burt voiced concerned over significant increases in the FAR and not considering increased creek setbacks.

Council Member Stone asked Staff about the impact of tree removal with the project. Staff replied the impact is unknown at this time . Council Member Stone asked about a construction timeline and its impact to Driftwood having to vacate . Planner Sauls said larger proje cts take at least 2 years.

Council Member Stone said it was unrealistic Driftwood Deli would survive a 2-year hiatus and it would be a big loss to the community. Council Member Stone asked the anticipated cost of the market rate units. Staff replied they

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did not have that yet. Council Member Stone asked if an RPP could be done that excluded par ticular projects. City Attorney Molly Stump replied former Attorney General Harris issued an opinion that it was not appropriate for multi-family housing developments to be excluded from an RPP available to single-family homes. There is broad discr etion for local councils to decide where to draw the lines of an RPP which would determine who is eligible to receiving parking permits. Council Member Stone asked if there were other amenities besides the swimming pool. Staff said a gym was proposed.

Council Member Cormack said the suggestions in Gail Price ’s email were reasonable and there was space for something to work in the location . This project represents a new community, not just a new building and amenities are a good consideration. She would like to know the dwelling units per acre in the buildable are a. Council Member Cormack asked the applicant if retaining park impact fees would prevent the project from moving forward.

The applicant replied that is a lar ge line item that must be considered with moving the project forward. Council Member Cormack said the public should know how park impact fees would be used. Staff said park imp act fees for the project are $21,370,435.32.

Council Member Greg Tanaka like d that the project is studio -heavy versus 3 bedrooms because smaller units are more affordable. Having retail along all of El Camino on the f irst floor would be beneficial. He asked if it the El Camino entrance could be the only entrance to the property. Staf f said a transportation impact study would be needed.

Council Member Eric Filseth said the project does not meet code and the height exceeds surroundings structures. The project is a 15-percent BMR project as opposed to 20 percent. He agreed with prior com ments regarding issues along Matadero Avenue. Matadero Creek preservation would be a challenge. Eliminating Driftwood and C ibo along with hotel taxes do not benefit the co mmunity. Council should not waive the t ree protection ordinance. RPP would cost near by residents $50 a permit , which is not a community benefit. The project is 8 5 percent market rate with 75 percent studios and 1-bedroom units renting for $3000 to $4000 a month and target single professionals. Council Member Filseth perceived this as Silicon Valley workforce housing. Actual affo rdable housing for people who work jobs in Palo Alto would be ideal. He said the project would make sense in a different area. The current location is ideal for a teacher housing project or another Wilton Court.

Council Member DuBois said a building with th is height needs a setback. He agreed with Mayor Burt about the concern for losing hotel tax revenue. He voiced concerned about open space and did not consider the creek open

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space. Keeping curb cuts on El Camino woul d address concerns about Matadero. He agreed with not waiving fees for a market rate project. There may be privacy concerns with rooftop terraces. The City should consi der including a RPP as part of the project. The Council may want to consider removing the PHZ zone. The project is asking for too much all at once. A smaller project might be feasible. He envisioned a project with a height of 50 feet or less, curb cuts only on El Camino, and massing pushed toward El Camino and away from residential neighborhoods while looking at R -1 zone setbacks with more distance from the creek and preserving mature trees.

Council Member Stone said the PHZ too l allows the Council to negotiate for more public benefit from a project, but it was not meant to allow massive departures from the zoning co de. He voiced concerned about the Matadero Avenue safe route to school and the size of the units . The smaller units are not necessarily affordable. The Creekside Inn and Dri ftwood Deli provide tax revenues and valuable local service s. The only way to reach Regional Housing Needs Allocation (RHNA) requirement of 3000 affordable housing units is through government subsidies that wou ld require funding from the City ra ised through impact fees or through partnerships with nonprofit housing provider s or grants from the state. If the applicant is requesting such large variances from the zoning code, it would be fair they pay the impact fees.

Council Member Cormack said something should be done with the Driftwood Deli if the project moves forward. She agreed with sole ingress and egress at El Camino. A proactive RPP makes sense . The Council should think how to evaluate future proposals in light of potential revenue loss, property tax increases, and sales tax.

Vice Mayor Kou cautioned about the need for hotels. Resident needs should be considered in project locations. Current retail at the project location would be reduced from 8,735 ft2 to 4,000 ft 2. The Matadero Avenue s afe route to school should be kept safe . Vice Mayor Kou thanked Planner Sa uls for the presentation to the neighborhoods.

Mayor Burt spoke about affordable housing categor ies within PHZ. The formula needs to be reexamined. Calculated re ntal prices for different AMIs have historically been based on people having parking. Adding pa rking drives up price of residency. Decoupling parking undermines the subsidy for the different affordable housing types. Mayor Burt was receptive to adding housing while retaining the hotel.

ACTION: None taken
Mayor Burt announced a meeting break.

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Agenda Changes, Additions and Deletions
None.

Public Comment

1. Sherry Gu , 10 -year residen t of R amona Street, spoke of a renting situation at 3185 Ramona and its impact on the neighborhood. There is high resident turnover and loud talking outdoors at night. The homeowner and primary renter were contacted with no response.

Neither live on site. Speaking with the residents did not solve the problem. Night noise is an ongoing problem . A single-family house can rent 14 sleeping pods which explains the spillover to t he outdoors at night. Street p arking is an issue . She requested the City limit how m any residents can live in a house. The primary re nter rents the house for his business, Brownstone Shared Housing. The yard is not maintained. Ms. Gu requested banning B rownstone from renting single -family hou ses in Palo Alto because the business negatively impacts neighborhoods.

2. Bob Moss said no parks have been added in the City in decades. He suggested that when a project comes in, the Council consider having a portion of the site set aside as a public park.

3. Aram James thanked Council Member Tanaka for providing a platform for so many differen t topic s such as weaponized polic e canines, tasers, open hiring processes, and reparations. He suggested Council Member Tanaka b e t he next vice mayor. He suggested shelving tasers and limiting the canine unit to search and rescue a nd drug searches while reducing th at budget. The ACLU should be invited to a study session to gain insight on the privacy issue and retention of license plate video feeds.

4. Jerry Santarpia attempted to speak but had connection issues.

Consent Calendar
There were no comments. Mayor Burt asked for a motion to approve.

MOTION: Council Member DuBois moved, seconded by Vice Mayor Kou to approve Agenda Item Numbers 3-5.

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3. Approve Minutes from the September 29, 2022, and October 3, 2022, City Council Meetings

4. Approval of Construction Contract Number C23183908 With GSW Construction, Inc., in the Amount of $995,556 for the Two Turnouts Upgrade Project (WS -07000) on California Avenue a nd Page Mill Road; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not -to-Exceed $99,556; and Approval of Budget Amendment in the Water Fund

5. Approval of Implementation of the U.S. Environmental Protection Agency- Funded (U.S. EPA) Greening Parking Facilities for a Sustainable Community Project and Approval of Agreement Between City of Palo Alto and City of Santa Clara to Partner on Project, and Approval of a Budget Amendment in the Stormwater Management Fund
MOTION PASSED: 7-0
City Manager Comments
City Manager Ed Shikada presented an update on COVID-19 information.

The CDC booster tool can be found at bit.ly/CDCBoosterTool.

He thanked those involved in the Ma king Better Ch oices in Your Home workshop re garding electrification. More information is available at www.cityofpaloalto.org/GoElectric. Information on the heat pump water heater program can be found at
www.cityofpaloalto.org/UpgradeYourWaterHeater.

The United Nations Association Film Festival begins on October 20.

The Great Shake- Out is on October 20. The City Council will have its own Shake-Out on October 24 at the beginning of the Council meeting.

Veterans Week events will begin November 7 at MacArthur Park.

City Manager Shikada outlined the upcoming Council items.

Action Items

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6. TEFRA Hearing Regarding Conduit Financing for the Kehillah Jewish High School's for the Partial or Full Refinancing of the 2014 Loan and Financing the Development, Construction, R enovation, Improvement and Equipping of the Corporation's Campus at 3900 Fabian Way, Palo Alto; and Approving the issuance of a Tax -exempt Loan by the California Municipal Finance Authority for this Purpose and Other Matters Relating Thereto
Administrative Services Director Kiely Nose explained the loans being discussed are to be issue d by the C alifornia Municipal Finance Authority (CMFA) and are the sole responsibility of the borrower. The City will have no financial or legal liability, obligation, or responsibility for the project, repayment of the loans, or financing. For a loan to qua lify as a t ax-exempt loan, a public hearing must be conducted. Members of the com munity can speak in f avor of or against use of tax -exempt loan proceeds for the financing of the project. Advance notice was prov ided to the community .

Following closure of the TEFRA hearing, an elected representative of the governmental unit hosting th e p roject will provide its approval of the issuance of the loans. Council is being asked to conduct a TEFRA hearing and adopt a resolution (Attachment A) that approves the issuance of the loans by the CMFA for the benefit of the borrower , Kehillah High School. Kehillah High School is asking for on e or more 501 (c)(3) tax-exempt loans not to exceed $10.5M for the purposes described above.

Mayor Burt invited the public to comment. No one stepped forward.

Mayor Burt invited the Council members to comment.

Council Member Tanaka asked why cities may say no to such requests.

Director Nose responded administrative burden is a reason. Council Member Tanaka asked why t his is not a matter for the school board. Director Nose responded it needed to be a public body with established procedures and the City commonly hosts these hearings.

MOTION: Vice Mayor Kou moved, seconded by Mayor Burt to adopt Resolution 10079 approving the issuance of the loan by the California Municipal finance Authority for the benefit of the Kehillah High School.

MOTION PASSED: 7-0

7. PUBLIC HEARING: Adoption of Ten Ordinances That Repeal, and Adopt Various Sections of the Palo Alto Municipal Code (PAMC) Related to the 2022 CA Building Codes (CA Code of Regulations Tit le 24) Update and Proposed Local Amendments

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(1) Chapter 15.04 Incorporati ng the 2022 CA Fire Code With Local Amendments;
(2) Chapter 16.04 Incorporating the 2022 CA Building Code With Local Amendments;
(3) Chapter 16.05 Incorporating the 2022 CA Mechanical Code Wit h Local Amendments;
(4) Chapter 16.06 Incorporating the 2022 CA Residenti al Code With Local Amendments and Amending Chapter 16.52 to Align Federal, State, and Local Flood Hazard Regulations;
(5) Chapter 16.08 Incorporating the 2022 CA Plumbing Code With Local Amendments;
(6) Chapter 16.16 Incorporating the 2022 CA Electrical Code With Local Amendments;
(7) Chapter 16.18 Incorporating the 2021 International Swimming Pool and Spa Code With Local Amendments;
(8) Chapter 16.14 Incorporating the 2022 CA Green Building Standar ds Code with Local Amendments;
(9) Chapter 16.17 Incorporating the 2022 C A Energy Code Without Local Amendments.
(10) Chapter 16.19 Incorporating the 2022 CA Energy Code With Local Amendments.

Chief Building Official George Hoyt described the California Building Standards Code . The cu rrent co de expires on December 31. The City can accept the state mandates or develop local amendments. Proposed amendments and Staff recommendations were explained.

The all-electric building code applies to both residential and commer cial buildings. The effective date would be January 1, 2023. The requ irement of heat pump water heaters would become effective January 1, 2023.

Council Member Tanaka asked if the City requires gluing vent pipes for hot water hea ters. Chief Building Official Hoyt said the City requires plastic piping to be glued and not screwed because a screwed pipe can loosen over time and produce exhaust leaks. Council Member Tanaka asked about using heat from a home A/C unit to preheat household wa ter. Chief Buil ding Official Hoyt said the industry is moving in that direction and they will have to see how it progresses. Council Member Tanaka asked about streamlining building permits and inspections regarding solar power and battery walls.

Chief Building Official Hoyt said a streamlined checklist for residential solar is available online. They are p iloting SolarAPP+ to permit r oof-mounted standalone PV systems. Permits for solar panels can be issued in 10 minutes using SolarAPP+. Traditional review process takes 2 to 5 days.

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Council Member Cormack referenced the dwelling unit and congregate housing occupancy section and an associated public comment. Chief Building Official Hoyt explained the details including r ooms used for sle eping purposes shall not be less than 70 ft2 and when more than 2 persons occupy a room used for sleeping purposes, the required area shall be increased at a ratio of 50 ft 2 for e ach occupant . Children under 6 are not counted when determining compliance with the code. This provision was created in response to pod housing. This was no t anticipated to affect senior living residences.

Council Member Cormack asked for additional information on the freeboard requirement. Chief Building Official Hoyt explained the Califor nia Building Code requires 1 additional foot of floor el evation to build a struct ure in a flood plain. Design flood elevation is based on the highest outside adjacent grade. If no elevation is set by FEMA, the highest adjacent grade is used.

Council Member DuBois asked for clarification around c ommercial building electrification and space type and cooling capacity and if this applie d to all commercial buildings. Chief Building Official Hoyt said this requirement is for all commer cial buildings including tenant improvements. There are no proposed exceptions. Council Member DuBois asked if an existing building would be required to put in additional sprinklers. Interim Fire Marshal Scott Woodfin said the increased sprinkler requirement is only for certain types of occupancies and in certain locations. If someone was changing an occupancy from one classification to another, they might be required to add sprinklers depending on the fire load. Being in the instances would also trigger compliance. There is no requirement to upgrade in an ex isting multifamily structure.

Council Member Stone asked how the City informs homeowners of historic buildings of the State historic building code. Chief Building Official Hoyt stated there was no active n otification process. Gu idance can be provided when requested at the Development Center. If the application came through the individual review or the planning process, guidance would be provided.

The Planning office connects with Building to share information. Director Lait said they could investigate that.

Council Member Stone questioned portable propane tanks being used as a substitute. Chief Building Official Hoyt clarified small portable propane tanks are a good alternative for barbecues. Senior Resource Planner Christine Tam stated propane has a lower global warming potential than CO2 and methane, which is in natural gas. Director Lait said usage of portable propane tanks cannot be monitored as no permit is required.

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New pools and outdoor spa s will require vapor -retardant covers . Council Member Stone a sked if this would be required for repl acement covers for existing pools. Chief Building Official Hoyt said there was no way to monitor that as no permit is required.

Vice Mayor Kou aske d about the wording in 320.3.13, Safety Certification .

Interim Fire Marshal Woodfin said they followed the Santa Clara County Fire Marshal recommendations.

Vice Mayor Kou referenced 16.04.450, Section 1803. 2, Investigations Required, regarding geotechnica l investigations being waived. She a sked how satisfactory data is determined. Interim Fire Marshal Woodfin said he would research that. The y follow S tate Water Board recommendations regarding groundwater. Chief Building Official Hoyt said engineers doing t he geotechnical review determine if the data is acceptable for the exception.

Vice Mayor Kou asked if the City was exceeding State requirements for electrification rehabilitation. Chief Building Official Hoyt said the proposal is exceeding State r equirements. Other cities use a minimum building square footage as the qualifier for the substantial remodel definition. Staff propose d a combination of square footage, wall height, and roof area.

Mayor Burt invited the public to comment.

Public Comment

1. Jared Johnson, Acterra Policy and External Relations Senior Manager, urged the Council to consider more emission reduct ion actions for existing buildings in the Reach Code cycl e. He supported a requirement for 2 -way heat pump systems in cases where existing buildings are replacing gas heating syste ms and when new central A/C systems are installed.

2. Cedric Pitot de La Beaujardiere said the 50-50 rule is not sufficient in determining if a remodel is required to elec trify. The addition of a financial threshold would ensure homes are getting electrified. He supported requiring heat pump HVAC systems in new residential building or remodels replacing their HVAC or when an A/C system is installed. The City should have incentiv es for ground source heat pumps. He urged the Council to use caution in communications regarding EV chargers as level 2 chargers in homes cause a need to replace transformers.

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3. Steve Rosenblum suggested the Counci l look at microgrids for neighborhood solar power and storage so when there are problems in the area -wide grid , local g rids can kick in to smooth the loads.

Regarding the EV presentation, there was no discussion of EV-to-grid power. If interfaced to the grid, EVs could be charged and discharged as needed. He endorsed heat pumps for home heating and cooling.

4. Hilary Glann of the 350 Palo Alto climate team advocated amending the proposed R each Codes to re quire both water heaters and furnaces to be subject to upgrades during major remodels. She encouraged the City to develop volu ntary programs in the near term for residents to replace ga s furnaces. She voiced concern about contractors charging hig h prices t o upgrade home electrical service and the cost of unnecessary City grid upgrades.

5. Andrea Gara of the 350 Palo Alto climate team urged Council t o commit to quarterly check-ins regarding the heat pump water hea ter program and home el ectrification resulting from the Reach Codes. If goals are not being met, a tier ed response is needed as with drought water-saving measures. Additional incentives and mandatory options should be ready if targets are missed.

6. David Coale voiced support for replacing gas furnaces w ith heat pump technology during large remodels.

7. Matt Passell urged mandatory programs for transitioning to electric appliances. He wanted to hear more about a grid modernization program.

8. Bruce Hodge of Carbon Free Palo Alto voiced support for extension of electrical for a ll new building t ypes in cluding ADUs and substa ntial remodels. Carbon Free Palo Alto recommends requiring 2-way heat pump systems in existing residential buildings when a gas duct ed heating system is replaced during additions or alteratio ns or when a new central A/C system is installed.

9. Bret Andersen agreed with prior comments. Extending requirements to existing buildings will increase awareness of electrification.

10. Sven Thesen lauded City Council actions taken in 2013 regarding requiring access to EV charging for new apart ment units . He described safety and practical reasons for transitioning from gas to electric. He urged the Council to create a sundown date for

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neighborhoods with natural gas at which point the gas supply would be terminated.

11. Sophie Thesen, age 16, voiced support of the proposed changes.

12. Julia Zeitlin of the Palo Alto Student Climate Coalition (PASCC) voiced support of the Council’ s climate neutrality goal, the S/CAP goals and key ac tion approval, and approval of the he at pump water heater program. She voiced support of the current and extended building Reach Codes , particu larly the requirement of green building requirements for new construction projects. She urged the Council to expand the code that requires heat pump w ater heaters when replacing water heaters during residential additions or alterations by requiring heat pump HVAC systems as well. Commercial buildings should be held to similar standards regarding electrification.

13. Amanda Rudin, senio r at Gunn High School and member of PASCC, echoed Ms. Zeitlin’s comments. She stated natural gas is the second- highest cause of greenhouse gas emissions in Palo Alto .

Electrification will reduce emission s from homes and benefit the health of the local ecosystem and the community.

14. Crystal Hernandez , residen t of San Mateo and Act erra student ambassador program manager , voiced support of building electrification and R each Code updates. She voiced support of recommendations made by the San M ateo Climate Action Team and seconded their comments.

Mayor Burt asked Staff if the re was reconsideration of the 3-year update cycle regarding green building codes. Chief Building Official Hoyt said this was not being considered.

Mayor Burt asked about the pros and cons of adopting the requirement of 2- way heat pump heating and cooling sy stems in additions or al terations of existing buildings when a gas ducted heating system is replaced and when a new central A/C system is installed . Utilities Assistant Director Jonathan Abendschein stated requir ements as l aid out reflect the desired long -term direction. The concern i n the short term is engineering and operation staff time in the Utilities D epartment. Half the engineering positions are cur rently vacant. The Engineering D epartment is full engaged. A small volum e of higher impact appliances could have a significant impact on the engineering team. The focus on water heaters was due to the relatively flat lo ads they have over the course of a year with less impa ct than other el ectrification measures. Space heating peaks in wi nter at the same time the residential

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load peaks. It takes over a year to get new transformers due to supply chain issues. Mayor Burt proposed the y identify the necessary ste ps to address capacity issues and allow for an update to the program within one year upon addressing those issues.

Council Member Cormack asked why electri c kitchens are not required during a remodel . Chief Building Official Hoyt said it co uld be taken i nto consideration next year. Council Member Cormack asked why they are not requiring EV equipment to be installe d in single and multifamily buildings.

Senior Resource Planner Tam replied technology is rapidly changing and it is better to wait until it is needed.

Council Member Cormack stated Palo Alto residents used an average of 66 gallons of water per customer per day in 2020/2021, but the use in surrounding cities is much less. She stressed improvements in water usage is necessary.

Mayor Burt said until the City upgrades the resident ial transform er infrastructure, they may not want residents to install higher am perage EV level 2 chargers , so staying with the EV -ready program is appropr iate.

Council Member Filseth voiced agreement.

MOTION: Mayor Burt moved, seconded by Council Member Filseth to adopt the proposed ordinances that repeal and adopt various sections of the Palo Alto Municipal Code (PAMC) related to the 2022 California Building Codes (Cal. Code of Regulations Ti tle 24) and prop osed local amendments:
(1) Ordinance 5563 repealing PAMC C hapter 15.04 and adopting a new Chapter 15.04 incorporating the 2022 Cal. Fire Code with local amendments;
(2) Ordinance 5564 repealing PAMC Chapter 16.04 and adopting a new Chapter 16.04 incorporating the 2022 Cal. Building Codes and local amendments and a ne w Chapter 16.19 incorporating the 2022 Cal.

Historical Building Code and Existing Building Code with local amendments;
(3) Ordinance 5565 repealing PAMC Chapter 16.05 and adopting a new Chapter 16.05 incorporating the 2022 Cal. Mechanical Code with local amendments;
(4) Ordinance 5566 repealing PAMC Chapter 16.06 and adopting a new Chapter 16.06 incorporating the 2022 Cal. Residential Code with local amendments and amending PAMC Chapter 16.52 t o align federal, state, and local regulations regarding flood hazards;

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(5) Ordinance 5567 repealing PAMC Chapter 16.08 and adopting a new Chapter 16.08 incorporating the 2022 Cal. Plumbing Code with local amendments;
(6) Ordinance 5568 repealing PAMC Chapter 16.16 and adopting a new Chapter 16.16 incorporating the 2022 Cal. Electrical Code with lo cal amendments;
(7) Ordinance 5568 repealing PAMC Chapter 16.18 and adopting a new Chapter 16.18 incorporating the 2021 International Swimming Pool and Spa Code with local amendments;
(8) Ordinance 5570 repealing PAMC Chapter 16.14 and adopting a new Chapter 16.14 incorporating the 2022 Cal. Green Building Standards Code with local amendments;
(9) Ordinance 5571 repealing PAMC Chapter 16.17 and adopting a new Chapter 16.17 incorporatin g the 2022 Cal. Energy Code without local amendments;
MOTION PASSED: 7-0
MOTION: May or Burt moved, seconded by Council Member Stone to direct staff return to the Council as soon as feasible with recommendations on strategies to increase our electrification workforce to be able to ensure electric reliability and expand electrification programs in the next year that would incorporate two-way, heat pump, HVAC systems upon replacement upon existing gas systems when a new system is installed in residential and commercial (roof pack) systems.

MOTION FAILED: 3-4, Tanaka, Cormack Filseth, DuBois voting no Council Member Questions, Comments and Announcements
Council Membe r Cormack was pleased to attend the Fire D epartment’s promotion ceremony. She informed the Council of a potential trip for Council members to Washington, D.C. next year aligned with the National League of Cities.

Mayor Burt said a good town hall meeting was had with Barron Park, Green Acres, and Palo Alto Orchards neighborhoods. The City received notice that a proposal was being brought forward to create a joint power authority for the Santa Clara County Cities Association. Questions were raised by board members and city managers, and they are pulling back on a vote. A deeper discussion will be had at the November meeting.

There will be a Climate Collaboration Summit on November 12 at Gunn High School. Mayor Burt will request authori zation of a maximum of $500 0 from the Council Contingency Fund.

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Adjournment: The meeting was adjourned at 10:45 P.M.

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