Palo Alto City Council
December 5, 2022

AMENDMENT NO.2 TO CONTRACT NO. C19171565

BETWEEN THE CITY OF PALO ALTO AND

BROWN AND CALDWELL

This Amendment No. 2 (this “Amendment”) to Contract No. C19171565 (the “Contract” as defined below) is entered into as of December 5, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and B ROWN AND CALDWELL , a California corporation, located at 201 N. Civic Drive, Suite 115, Walnut Creek, CA 94596 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract was entered into by and between the Parties h ereto for the provision of design and engineering services to upgrade its existing two-stage secondary treatment process at the Regional Water Quality Control Plant (RWQCP) (the “Project”), as detailed therein.

B. The Parties entered into Amendment No.1 to extend the Contract term, specify Additional Services to be performed, and increase the Compensation, as detailed therein.

C. The Parties now wish to amend the Contract to extend the term through March 31, 2028, update the Hourly Rate Schedule Exhibit C-1, and increase the total not-to-exceed compensation by One -Million, Four-Hundred-Eighty-Four-Thousand, Six-Hundred- Eighty-Nine Dollars ($1, 484,689) from Four-Million Four -Hundred Twenty-Four- Thousand One-Hundred-Two Dollars ($4,424,102) to Five-Million Nine-Hundred-Eight- Thousand, Seven-Hundred-Ninety-One Dollars ($5,908,791), as detailed herein.

NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree:

SECTION 1. Definitions. The following definitions shall apply to this Amendment:

a. Contract. The term “Contract” shall mean Contract No. C1 9171565 between CONSULTANT and CITY, dated September 10, 2018, as amended by:

Amendment No. 1, dated October 19, 2020

b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows:

“The term of this Agreement shall be from the date of its full execution through March 31, 2028, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.” DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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SECTION 3 . Section 4. “NOT TO EXCEED COMPENSATION” of the Contract is amended and replaced in its entirety to read as follows:

“The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Five Million Three-Hundred Seventy-One-Thousand Six Hundred Twenty-Eight Dollars ($5,371,628) . CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exc eed Five Million Nine Hundred Eight-Thousand Seven Hundred Ninety-One Dollars ($5,908,791). The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement.

Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY.

Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean 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”.

SECTION 4. The following exhibit(s) to the Contract are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which are hereby incorporated in full into this Amendment and into the Contract by this reference:

a. Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 2”, ADDED.

b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS.

c. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS.

d. Exhibit “C-1” entitled “HOURLY RATE SCHEDULE, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS.

SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.

SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.

(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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

CITY OF PALO ALTO

_________________________
City Manager or Designee

APPROVED AS TO FORM:

___________________________
City Attorney or Designee

BROWN AND CALDWELL

Officer 1
By:_____________________________
Name: __________________________
Title: ___________________________

Officer 2
By:______________________________
Name: ___________________________
Title: ____________________________

Attachments:

Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 2” (ADDED) Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2” (AMENDED, REPLACES

PREVIOUS)
Exhibit “C” entitled “COMPENSATION AMENDMENT NO. 2” (AMENDED, REPLACES PREVIOUS) Exhibit “C-1” entitled “HOURLY RATE SCHEDULE, AMENDMENT NO. 2” (AMENDED, REPLACES

PREVIOUS)

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7 Vice President
Angela MacKinnon, Vice President
Lori Jones, Vice President
Vice President

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EXHIBIT “A”
SCOPE OF SERVICES, AMENDMENT NO. 2
(ADDED)

Amendment No. 2 is needed to add funds in the amount of $1,484,689 to the project to address the delayed construction start date and construction duration and to account for:

1. Additional design services to aid in construction bidding and during construction:
a. Further development of an indicative construction schedule. b. Further development of construction sequencing and constraints specifications. c. Preliminary design of temporary facilities and systems required during construction, including development of preliminary design drawings.
d. As-needed additional engineering services for unforeseen site conditions and coordination with other ongoing major capital projects at the RWQCP
e. Updated opinion of probable construction cost (OPCC) and projection of cash flow durin g construction for budgeting purposes.
f. Participation in a constructability review to be conducted by the City’s selected construction manager.
g. Additional meetings and workshops.

2. Additional bid period services associated with the items listed above and the expanded scope and complexity of the Project.

3. Additional engineering services during construction (ESDC) associated with a larger volume of construction documents and resubmittals

4. the items listed above and the expanded scope and complexity of the Project.

5. Additional commissioning and startup services to account for staged commissioning and startup of the Project.

6. Additional project management services associated with the expanded scope and duration of the Project.

7. Updated costs, accounting for increases in hourly billing rates, for providing engineering services during construction.

BACKGROUND
The scope, size, and complexity of the Project have increased significantly since its inception. In addition, the Project’s schedule has been extended from a projecte d completion date in mid -2022 (based on the original baseline schedule) to mid-2026 (based on the September 2021 schedule update).

Likewise, the estimated construction cost of the project has increased from $31 million (based on February 2018 planning report prepared by Carollo Engineers) to $118 million (based on cost estimate developed for 90% complete design documents prepared by BC).

Due to the complexity of construction sequencing and constraints associated with the Project, the originally planned approach using a single specification section to describe construction requirements in narrative format is not sufficient to communicate requirements to the bidders and selected contractor. Therefore, more detailed construction requirements, including a deta iled indicative construction schedule, additional and expanded specifications, and additional drawings, are required to adequately illustrate the requirements. The intent of this additional effort is to increase certainty DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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that bids are based on a common un derstanding of construction requirements and to avoid adverse impacts during construction, such as disruptions to operation and maintenance of the Plant.

In addition, the City has requested additional services as described herein that were not included in the original contract or contract amendments issued previously by the City.

TASKS
BC will complete the tasks described below.

Task 230.210 – Additional Design Services
Further Development of Indicative Construction Schedule: BC will refine the construction schedule developed previously based on further development of construction requirements as described in tasks below. The schedule will remain in Microsoft Project format and will become an attachment to Section 01 12 16 (Work Sequence and Constraints) of the specifications.

The schedule will be Level 3 as defined by AACE International and will illustrate an indicative approach for building the project based on the specified construction sequence and constraints. The intent is to facilitate the bidders’ and selected contractor’s understanding of the project, but the contractor will be responsible for developing a separate construction schedule based on the specified requirements.

Deliverables for this task are as follows:
 Draft construction schedule in pdf and Microsoft Project formats  Final construction schedule in pdf and Microsoft Project formats

Further Development of Construction Sequencing and Constraints Specifications: BC will further develop specifications for the following:
 Construction sequencing and constraints
 Temporary facilities and systems, including bypass pumping systems, an aeration blower system, a standby generator system, and temporary power supply systems serving these items

BC will include requirements in the specifications for the Contractor to obtain any necessary permits for temporary standby generators required to maintain operations and reliability of the Plant during construction of the Project. BC will not prepare any applications for such permits.

Deliverables for this task are as follows:
 Draft 90% complete specifications in pdf format
 Final specifications in pdf format (included with final bid document package for entire project)

Preliminary Design of Temporary Facilities and Systems: BC will develop preliminary design draw ings for temporary facilities and systems required during construction. The designs will be limited to items listed below and will not include items such as construction trailers, laydown areas, parking, and temporary utilities. The intent of the prelimina ry designs is to facilitate the bidders’ and selected contractor’s understanding of the project, but the contractor will be responsible for developing final DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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designs of all temporary facilities and systems. Items included in this task are as follows:
 Development of drawings depicting preliminary configurations and minimum requirements for temporary facilities and systems

Temporary facilities and systems will include the following:
 Temporary bypass pumping systems, including general locations of temporary bu lkheads and coffer dams:
 ILS And FFR Temporary Bypass Pumping Plan
 FFR Temporary Drainage Pumping Plan
 Aeration Tank 1 Temporary Bypass Pumping Plan
 Aeration Tank 2 Temporary Bypass Pumping Plan
 Aeration Tank 3 Temporary Bypass Pumping Plan
 Aeration Tank 4 Temporary Bypass Pumping Plan
 Temporary aeration blowers:
 Three temporary aeration blowers installed in parking lot adjacent to existing Blower Room and associated power supply, controls, valves, piping, and appurtenances  Temporary standby generator
 One 1,100 kW portable standby generator to replace an existing generator during construction of a new generator system
 Temporary power for Load Center 11
 Temporary connection to SW1911.5x (located at the northeast corner of the primary sedimentation tanks in the yard area east of the Solids Building per direction from the City)

Drawings to be developed for this task are listed in Table 1.

Table 1. List of Drawings for Temporary Facilities and Systems Drawing Description

GENERAL CONSTRUCTION
000-GC-0000 COVER SHEET, VICINITY MAP, AND LOCATION MAP 000-GC-0001 INDEX OF DRAWINGS
000-GC-0002 SYMBOLS AND LEGENDS
000-GC-0003 ABBREVIATIONS
000-GC-1010 PHASE 1 KEY PLAN
000-GC-1020 PHASE 2 KEY PLAN
000-GC-1030 PHASE 3 KEY PLAN
000-GC-1040 PHASE 4 KEY PLAN
000-GC-1050 PHASE 5 KEY PLAN
000-GC-1060 PHASE 6 KEY PLAN

MECHANICAL CONSTRUCTION
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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Table 1. List of Drawings for Temporary Facilities and Systems Drawing Description
000-DC-0001 SYMBOLS AND LEGENDS
110-DC-1110 ILS AND FFR TEMPORARY BYPASS PUMPING PLAN
110-DC-4110 ILS AND FFR TEMPORARY BYPASS PUMPING PLANS, SECTIONS AND DETAILS 120-DC-1110 FFR TEMPORARY DRAINAGE PUMPING PLAN
120-DC-4110 FFR TEMPORARY DRAINAGE PUMPING PLANS AND SECTIONS 132-DC-1110 AERATION TANK 1 TEMPORARY BYPASS PUMPING PLAN 132-DC-1210 AERATION TANK 2 TEMPORARY BYPASS PUMPING PLAN 132-DC-1310 AERATION TANK 3 TEMPORARY BYPASS PUMPING PLAN 132-DC-1410 AERATION TANK 4 TEMPORARY BYPASS PUMPING PLAN 132-DC-4110 AERATION TANK TEMPORARY BYPASS PUMPING SECTIONS 137-DC-1110 MA COMPRESSORS INSTALLATION IN TEMPORARY LOCATION

ELECTRICAL
000-ED-0001 LEGENDS AND SYMBOLS
000-ED-0002 LEGENDS AND SYMBOLS
005-EC-6010 PHASE 1 ONE-LINE DIAGRAM
005-EC-6020 PHASE 2 ONE-LINE DIAGRAM
005-EC-6030 PHASE 3 ONE-LINE DIAGRAM
005-EC-6040 PHASE 4 ONE-LINE DIAGRAM
005-EC-6050 PHASE 5 ONE-LINE DIAGRAM
005-EC-6060 PHASE 6 ONE-LINE DIAGRAM
005-EC-6010 PHASE 1 ONE-LINE DIAGRAM
005-EC-6020 PHASE 2 ONE-LINE DIAGRAM
P&IDS
000-NC-0001 SYMBOLS AND LEGENDS 1
000-NC-0002 SYMBOLS AND LEGENDS 2
000-NC-0003 SYMBOLS AND LEGENDS 3
000-NC-0004 SYMBOLS AND LEGENDS 4
110-NC-6110 TEMPORARY PE BYPASS PUMPING
120-NC-6110 TEMPORARY FFR BYPASS PUMPING
132-NC-6110 TEMPORARY AERATION TANK 1 ML BYPASS PUMPING 132-NC-6120 TEMPORARY AERATION TANK 2 INFLUENT BYPASS PUMPING 132-NC-6130 TEMPORARY AERATION TANK 3 ML BYPASS PUMPING 132-NC-6140 TEMPORARY AERATION TANK 4 INFLUENT BYPASS PUMPING 133-NC-6110 TEMPORARY BLOWER SYSTEM
133-NC-6210 TEMPORARY AERATION BLOWERS

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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Assumptions for this task are as follows:
 Existing structures are suitable to loads associated with temporary facilities and systems without modifications.
 Temporary systems will be powered from the Plant’s power distribution network.  Sources and connection points to supply power to temporary systems are sufficient without modifications.

Deliverables for this task are as follows:
 Draft 100% complete drawings in pdf format
 Final drawings in pdf format (included with final bid document package for entire project)

Further Coordination with Interfacing Projects: BC will further coordinate construction requirements for the Project with projects entailing upgrades and rehabilitation of the 12 kV power distribution system and primary sedimentation tanks based on information provided by the City. Coordination will include identification of interface and overlap points betw een the projects. BC will include identified requirements in the specifications and indicative construction schedule. Coordination will include temporary and permanent interfaces with other projects required to construction and commission the Project.

Deliverables for this task are as follows:
 Included in other tasks.

Updated OPCC and Cash Flow Projection: BC will update the opinion of probable construction cost (OPCC) based on the specifications and drawings described above. The OPCC will also consider increased cost escalation experienced in 2021 and estimates of cost escalation in future years.

The OPCC for these items will be included in the final OPCC for the entire Project. The OPCC will be Class 1 as defined by AACE International.

In addition, BC will cost load the indicative construction schedule (see task above regarding schedule development) based on the updated OPCC to generate a projection of cashflow during the construction period.

Deliverables for this task are as follows:
 Updated OPCC (to be provided in conjunction with 100% design submittal for entire Project)  Cash flow projection, including cost loaded Microsoft Project schedule and cash flow chart

Participation in Constructability Review: BC will participate in a constructability review to be conducted by the City’s construction manager based on the 100 percent complete drawings, specifications, and indicative construction schedule.

The extent of any design changes that may arise from the review is unknown. Therefore, an allowance of 25 0 hours is included for responding to questions, comments, and proposed changes to the document. Any changes will be made in the final bid documents.

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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Deliverables for this task are as follows:
 Final bid documents

Additional Meetings and Workshops: BC wil l conduct or participate in additional meetings and workshops required to complete the foregoing tasks during the design period. Since the number, duration, and topics of such meetings is not known, an allowance of 80 hours is included for effort associated with the additional meetings and workshops. This allowance includes effort to prepare for workshops (e.g., preparation of agendas and presentation materials), attendance, and preparation of minutes.

Deliverables for this task are as follows:
 Meeting and workshop agendas
 Meeting and workshop presentation material
 Meeting and workshop minutes
Task 300.306 – Additional Bid Period Services

BC will provide additional bid period services associated with the additional design services listed above. It is expected that additional questions from bidders and addenda will be required based on the expanded scope and complexity of the Project. In addition, the bid period will be extended from two months to three months as requested by the City due to the Project’s scope and complexity. Since the actual added effort is uncertain, an allowance of 100 hours is included in the fee estimate to account for the additional bid period services.

Deliverables:
 Additional responses to bid period questions, up to the budget limit  Additional addenda, up to the budget limit
Task 400.409 – Additional Engineering Services During Construction BC will provide additional ESDC associated with the work described herein, including the following:
 It is assumed that up to 50 additional submit tals or resubmittals will be reviewed at an average duration of 4 hours per submittal.
 BC will prepare written responses to requests for information (RFIs) submitted by the contractor.

It is assumed that up to 100 additional RFIs will be reviewed at an average duration of 3 hours per RFI.
 Up to two BC engineers will conduct up to 20 additional site visits to meet with the contractor and observe the work.
 BC will provide additional commissioning support services. For budgeting purposes, 600 additional hours of effort are included in the budget to accounted for staged commissioning and startup of the Project.
 BC will provide additional technical support regarding change orders. The construction manager will retain the primary responsibility for managing, admin istering, and negotiating change orders.

For budgeting purposes, 100 additional hours of effort are included in the budget.

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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 BC will provide additional services associated with preparation of record drawings based on the expanded scope of the project. For b udgeting purposes, 100 hours of additional support are included.
 BC’s subconsultant, Cal Engineering & Geology, will provide on -site field observation services during construction, including observation of pile foundation construction. The fee estimate assumes 22 separate site visits with duration of 2 to 8 hours per visit. The services also include preparation of a technical report regarding the work.

Deliverables for this task are as follows:
 Additional submittal reviews, up to the budget limit
 Additional RFI responses, up to the budget limit
 Additional technical information, drawings, and specifications to support change orders  Additional record drawings
Task 500.504 – Additional Project Management
BC will provide additional project management a ssociated with the expanded scope and duration of the work, including maintaining the Project schedule, invoicing, reporting, management of staff, and project controls. For budgeting purposes, 400 additional hours are included.

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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EXHIBIT “B”
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2
(AMENDED-REPLACED PREVIOUS)

CONSULTANT shall perform the Services so as to complete each milestone within the number of 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.

Milestones Completion in Weeks Following issuance of NTP.

1. Task 1 - Design Re-Start Meeting 02

2. Task 1 - Submit Draft PDR 24

3. Task 1 - Submit 30% Design (Final PDR) 28

4. Task 2 - Submit 60% Design 48

5. Task 2 - Submit 90% Design 60

6. Task 2 - Submit 100% Design (Bid Documents) 194

7. Task 3 - Services During Bidding 207

8. Task 4 - Services During Construction 494

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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EXHIBIT “C”
COMPENSATION, AMENDMENT NO. 2
(AMENDED-REPLACED PREVIOUS)

CITY agrees to compensate CONSULTANT for professional 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 hourly rate schedule attach ed as Exhibit C-1 up to the not to exceed budget amount for each task set forth below.

CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below.

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

BUDGET SCHEDULE NOT TO EXCEED AMOUNT

Task 1 - (Preliminary Design) $1,259,062

Task 2 - (Final Design) $1,965,570

Task 3 - (Bid Period Services) $136,097

Task 4 - (Eng. Services during Construction) $1,483,395

Task 5 - (Project Management) $396,303

Task 6 - (Wastewater Characterization) $53,211

Sub-Total Basic Services: $5,293,638

Reimbursable Expenses: $77,990

Total Basic Services & Reimbursable Expenses: $5,371,628

Additional Services (Not to Exceed): $537,163

Maximum Total Compensation: $5,908,791

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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REIMBURSABLE EXPENSES

The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses . CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are:

A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees.

B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost.

All requests for payment of expenses shall be accompanied by appropriate backup information.

Any expense anticipated to be more than $ 1,000.00 shall be approved in advance by the CITY’s project manager.

ADDITIONAL SERVICES

CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. CONSULTANT, at CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C -1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement

Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services:

Should an Environmental Impact Report (EIR) be required under CEQA, the additional services fund may be considered for use on this task, depending upon the estimated cost to perform this service.

SCHEDULE OF RATES
Beginning on the effective date of the signing of this Contract Amendment, the following hourly rates shall continue to apply to the Tasks outlined in the scope of services in Exhibit “A.”

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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EXHIBIT “C-1”
HOURLY RATE SCHEDULE, AMENDMENT NO. 2
(AMENDED, REPLACES PREVIOUS)

Brown and Caldwell Hourly Rate (3% Escalation Each Year):

Billing Classification: 2022 2023 2024 2025 2026 2027
Office/Support Services I $82 $87 $92 $98 $104 $110
Word Processor I $82 $87 $92 $98 $104 $110
Drafter Trainee $86 $91 $96 $102 $108 $114
Field Service Technician I $86 $91 $96 $102 $108 $114
Office/Support Services II $86 $91 $96 $102 $108 $114
Assistant Drafter $100 $106 $113 $119 $126 $134
Field Service Technician II $100 $106 $113 $119 $126 $134 Word Processor II $100 $106 $113 $119 $126 $134
Office/Support Services III $100 $106 $113 $119 $126 $134 Accountant I $104 $110 $116 $123 $131 $139
Word Processor III $104 $110 $116 $123 $131 $139
Office/Support Services IV $104 $110 $116 $123 $131 $139 Drafter $104 $110 $116 $123 $131 $139
Engineering Aide $104 $110 $116 $123 $131 $139
Inspection Aide $104 $110 $116 $123 $131 $139
Field Service Technician III $111 $118 $125 $133 $141 $149 Accountant II $111 $118 $125 $133 $141 $149
Word Processor IV $111 $118 $125 $133 $141 $149
Geologist/Hydrogeologist I $111 $118 $125 $133 $141 $149 Scientist I $111 $118 $125 $133 $141 $149
Senior Field Service Technician $111 $118 $125 $133 $141 $149 Engineer I $111 $118 $125 $133 $141 $149
Senior Drafter $111 $118 $125 $133 $141 $149
Senior Illustrator $111 $118 $125 $133 $141 $149
Inspector I $111 $118 $125 $133 $141 $149
Accountant III $136 $144 $153 $162 $172 $182
Area Business Operations Mgr. $136 $144 $153 $162 $172 $182 Technical Writer $136 $144 $153 $162 $172 $182
Word Processing Supervisor $136 $144 $153 $162 $172 $182 Geologist/Hydrogeologist II $136 $144 $153 $162 $172 $182 Scientist II $136 $144 $153 $162 $172 $182
Engineer II $136 $144 $153 $162 $172 $182
Inspector II $136 $144 $153 $162 $172 $182
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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Brown and Caldwell Hourly Rate (3% Escalation Each Year):

Billing Classification: 2022 2023 2024 2025 2026 2027
Lead Drafter $136 $144 $153 $162 $172 $182
Lead Illustrator $136 $144 $153 $162 $172 $182
Accountant IV $159 $168 $178 $189 $200 $212
Administrative Manager $159 $168 $178 $189 $200 $212
Geologist/Hydrogeologist III $159 $168 $178 $189 $200 $212 Scientist III $159 $168 $178 $189 $200 $212
Engineer III $159 $168 $178 $189 $200 $212
Inspector III $159 $168 $178 $189 $200 $212
Senior Designer $159 $168 $178 $189 $200 $212
Supervising Drafter $159 $168 $178 $189 $200 $212
Supervising Illustrator $159 $168 $178 $189 $200 $212
Senior Technical Writer $182 $193 $205 $217 $230 $244
Senior Geologist/Hydrogeologist $182 $193 $205 $217 $230 $244 Senior Scientist $182 $193 $205 $217 $230 $244
Senior Engineer $182 $193 $205 $217 $230 $244
Principal Designer $182 $193 $205 $217 $230 $244
Senior Construction Engineer $182 $193 $205 $217 $230 $244 Senior Engineer $182 $193 $205 $217 $230 $244
Principal Engineer $225 $239 $253 $268 $284 $301
Principal Construction Engineer $225 $239 $253 $268 $284 $301 Supervising Designer $225 $239 $253 $268 $284 $301
Assistant Controller $259 $274 $291 $308 $327 $346
Supervising Scientist $259 $274 $291 $308 $327 $346
Supervising Geologist/Hydrogeologist $259 $274 $291 $308 $327 $346 Supervising Engineer $259 $274 $291 $308 $327 $346
Supervising Const. Engineer $259 $274 $291 $308 $327 $346 Area Business Ops Mgr. IV $305 $323 $343 $363 $385 $408 Managing Geologist/Hydrogeologist $305 $323 $343 $363 $385 $408 Managing Scientist $305 $323 $343 $363 $385 $408
Managing Engineer $305 $323 $343 $363 $385 $408
Corp Marketing Comm. Mgr. $328 $347 $368 $390 $413 $438 Managing Geologist/Hydrogeologist $328 $347 $368 $390 $413 $438 Chief Scientist $328 $347 $368 $390 $413 $438
Chief Geologist/Hydrogeologist $328 $347 $368 $390 $413 $438 Chief Engineer $328 $347 $368 $390 $413 $438
Executive Engineer $328 $347 $368 $390 $413 $438
Vice President $328 $347 $368 $390 $413 $438

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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Vers.: Aug. 5, 2019

Notes:

1. Above rates are effective from January 1, 2002 through December 31, 2027. Rates are escalated at 3% per year from 2022.

2. Rates include salary, overhead and profit.

3. Sub-consultants’ work will be billed to City at cost plus 10% markups. For direct costs where a 10% increase has already been added by the subconsultant(s), Brown and Caldwell is not authorized to bill the City an additional 10% markups on top of the 10% markups already added by the subconsultant(s).

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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Vers.: Aug. 5, 2019

SUB-CONSULTANT RATES

Sub-consultant Firm Name: CAL Engineering & Geology
Scope of Work: To provide geotechnical study, inspection and laboratory test services as ordered and directed by Kennedy/Jenks:

Rates:

Personnel 2022 2023 2024 2025 Rates/Units
Senior Principal
Engineer/Geologist $290 $300 $310 $320 per hour
Principal Engineer/Geologist $250 $260 $270 $280 per hour Associate Engineer/Geologist $225 $230 $235 $240 per hour Senior Engineer/Geologist $210 $215 $220 $225 per hour Construction Manager $205 $210 $215 $220 per hour
Project Engineer/Geologist $175 $180 $185 $190 per hour Staff Engineer/Geologist $155 $160 $165 $170 per hour Technician* (Straight time rate) $140 $145 $150 $155 per hour Special Inspector* (Straight
time rate) $140 $145 $150 $155 per hour
Senior GIS/CADD Specialist $150 $155 $160 $165 per hour GIS/CADD Specialist $135 $140 $145 $150 per hour
Computational Geoscientist $175 $180 $185 $190 per hour Project Assistant $105 $110 $115 $120 per hour
Administration/Clerical $95 $100 $105 $110 per hour Deposition/Court Testimony
(minimum 4 hours) $420 $435 $450 $465 per hour
* Rates for technician and inspector work that are subject to State of California prevailing wage laws are for straight time, and reflect wage and benefits scales published by the California Department of Industrial Relations (DIR) for the greater San Francisco Bay Area as of June 1, 2021. Standard overtime and holiday overtime rates are 15% and 30% more than the straight time rates. All services subject to prevailing wage laws will be subject to change on a prorated basis to reflect applicable revisions to the DIR’s published wage and benefit scales.

Notes:

1. Professional Services - These are “all-up” rates, and include direct salary cost, overhead, general and administrative costs not separately accounted for, and profit. They shall remain in effect through December 31, 2025. Unless otherwise agreed upon, ongoing work that continues beyond December 31, 2025 will include an anticipated annual increase of 3 percent or the CPI, whichever is greater. Rates for services subject to state prevailing wage laws will change as noted in response to revisions to the published wage and benefit scales.

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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Vers.: Aug. 5, 2019

2. Travel Time - Travel time will be charged at regular hourly rates, not to exceed eight (8) hours per day.

3. Expenses - All direct costs will be billed at actual cost plus 10%, unless there is explicit agreement otherwise. Direct costs include:
• Third party services – Fees for subcontracted third party services (including drilling and backhoe services, special consultant fees, permits, special equipment rental, overnight mail or messenger services and other similar project related costs). • Travel expenses, including airfares, hotel, m eals, ground transportation, and miscellaneous expenses.
• Reproduction costs, including photocopy, blueprints, graphics, photo prints or printing.

4. Subconsultants - To the extent that it becomes necessary to use subconsultants, Client will be invoiced at cost plus 10% to cover insurance liability and other overhead costs.

5. Accounting - The cost of normal accounting services for invoicing has been considered in the overhead expense which is included in the above hourly rates. Additional requirements for invoice verification, such as copies of time sheets, detailed expense records, and supplemental daily work justification will be billed on an hourly basis.

DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7

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AMENDMENT NO. 2 TO CONTRACT NO. C21179265C

BETWEEN THE CITY OF PALO ALTO
AND CAROLLO ENGINEERS, INC.

This Amendment No. 2 (this “Amendment”) to Contract No. C21179265C (the “Contract” as defined below) is entered into as of December 5, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ( “CITY”), and CAROLLO ENGINEERS, INC. , a California corporation, located at 2795 Mitchell Drive, Walnut Creek, CA 94598 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract (as defined below) was entered into by and between the Parties to provide construction management and inspection services on an on-call, as-needed, time-limited basis in connection with individual projects or inspection tasks at the Regional Water Quality Control Plant (RWQCP), as detailed therein.

B. The Parties entered into Amendment No. 1 to add Task 2 services (referred to as Work Order No. 2) for Construction Management and Inspection S ervices for the 12kV Electrical Power Distribution Loop Rehabilitation Bid Package 1 Project, and to increase compensation by Six Hundred Four Thousand Two Hundred Forty -Six Dollars ($604,246.00), from One Dollar ($1.00) to Six Hundred Four Thousand Two Hundred Forty-Seven Dollars ($604,247.00), as detailed therein.

C. The Parties now wish to amend the Contract in order to (1) extend the contract term through March 31, 2028; (2) add Task 3 services (referred to as Work Order No. 3) for Construction Management Services for the Secondary Treatment Upgrades Project; and (3) increase compensation by Eight Million Two Hundred Thirty-Seven Thousand Twenty- One Dollars ($8,237,021.00), from Six Hundred Four Thousand Two Hundred Forty-Seven Dollars ($604,247.00) to Eight Million Eight Hundred Forty-One Thousand Two Hundred Sixty-Eight Dollars ($8,841,268.00), as detailed herein.

NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:

SECTION 1. Definitions. The following definitions shall apply to this Amendment:

a. Contract. The term “Contract” shall mean C ontract No. C21179265C between CONSULTANT and CITY, dated June 14, 2021, as amended by:

Amendment No. 1, dated November 7, 2022

b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

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SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows:

“The CITY is engaging multiple consultants, including CONSULTANT, that are eligible to respond with proposals to the CITY’s project -specific Task Orders under the process described in Exhibit A. 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 One Dollar ($1 ), unless CITY selects CONSULTANT, according to the process in Exhibit A, to perform services under a Task Order not to exceed Eight Million Two Hundred Thirty -Seven Thousand Twenty -One Dollars ($8,237,021.00) over the term of the Agreement. No pre-qualified consultant, including the CONSULTANT under this Agreement, is guaranteed selection or assured of any minimum quantity of work to be performed. In the event CONSULTANT is not selected to provide Services under a Task Order, no payment is due from CITY.

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.

A. The City has selected CONSULTANT to perform Work Order # 2, for construction management and inspection services for the Medium Voltage Electrical Network (12kV Elec.

Loop) Rehabilitation Bid Package 1 Project, in the amount not to exceed Five Hundred Forty- Nine Thousand Three Hundred Fifteen Dollars ($549,315.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services (as defined below) are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed Six Hundred Four Thousand Two Hundred Forty-Seven Dollars ($604,247.00).

B. The City has selected CONSULTANT to perform Work Order # 3, for construction management services for the Secondary Treatment Upgrades Project, in the amount not to exceed Seven Million Four Hundred Eighty -Eight Thousand Two Hundred One Dollars ($7,488,201.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services (as defined below) are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed Eight Million Two Hundred Thirty Seven Thousand Twenty-One Dollars ($8,237,021.00).

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 Fifty-Four Thousand Nine Hundred Thirty -Two Dollars ($54,932.00) for the performance of Additional Services for Work Order #2 and Seven Hundred Forty-Eight Thousand Eight Hundred Twenty Dollars ($748,820.00) for Work Order #3 (as

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defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Eight Million Eight Hundred Forty-One Thousand Two Hundred Sixty-Eight Dollars ($8,841,268.00) 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 in a Task Order issued under 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 within 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 3. The following exhibit(s) to the Contract are hereby amended, as indicated below, to read as set forth in the attachment(s) to this Amendment, which are hereby incorporated in full into this Amendment and into the Contract by this reference:

a. Exhibit “A-3” entitled ““PROFESSIONAL SERVICES TASK ORDER NO. 3, AMENDMENT NO. 2” (ADDED).
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2 ” (AMENDED,

REPLACES PREVIOUS)

c. Exhibit “C” entitled “ COMPENSATION, AMENDMENT NO. 2 ,” (AMENDED, REPLACES PREVIOUS).

SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.

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SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.

(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)

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SIGNATURES OF THE PARTIES

IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.

CITY OF PALO ALTO

______________________________
City Manager or Designee

APPROVED AS TO FORM:

______________________________
City Attorney or Designee

CAROLLO ENGINEERS, INC.

Officer 1

By:_____________________________

Name:__________________________

Title:____________________________

Officer 2

By:_____________________________

Name:__________________________

Title:____________________________

Attachments:

Exhibit “A-3”: PROFESSIONAL SERVICES TASK ORDER NO. 3
Exhibit “B”: SCHEDULE OF PERFORMANCE
Exhibit “C”: COMPENSATION

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EXHIBIT “A-3”
PROFESSIONAL SERVICES TASK ORDER NO. 3, AMENDMENT NO. 2 (ADDED)

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. C21179265C

1A. MASTER AGREEMENT NO.: C21179265C
1B. TASK ORDER NO 3: Work Order No. 3 for Construction Management Services for the Secondary Treatment Project

2. CONSULTANT NAME: CAROLLO ENGINEERS, INC.

3. PERIOD OF PERFORMANCE: START: Immediately Once Notice To Proceed (NTP) is Issued; COMPLETION: 276 Weeks from NTP
4 TOTAL TASK ORDER NO. 3 PRICE: $7,488,201.00
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: $0

5. WBS/CIP: WQ-19001

6. CITY PROJECT MANAGER: Padmakar Chaobal, Public Works Department, Environmental Services Division, RWQCP

7. DESCRIPTION OF SCOPE OF SERVICES 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: Task Order No. 3 Scope Of Services, including Schedule of Performance and Compensation Schedule

TASK ORDER #3 SCOPE OF SERVICES

WORK ORDER NO. 3: CONSTRUCTION MANAGEMENT SERVICES FOR THE SECONDARY TREATMENT

UPGRADES PROJECT

Task 1: General Requirements

1. For any work which requires licensing, the Proposers shall be appropriately licensed in accordance with the laws of the State of California. The cost for any required licenses or training shall be the responsibility of the successful Proposers and shall not be expensed as part of this contract.

2. CONSULTANT shall prepare and submit to the City a Project Management Plan to include schedule; budget; spending projection and staffing level for each month for the duration of the contract term; personnel roles and construction management

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procedures. CONSULTANT shall provide all necessary administration, project controls, quality assurance and professional oversight to ensure that:
a. The project remains on schedule, within budget, ensures continuity of information, and satisfies the requirements of the CONTRACT. b. The construction project is progressing per construction contract’s requirements.

3. For the STU Project, the CITY will seek disbursement from SRF for some or all of the CONSULTANT’s costs. CONSULTANT shall provide SRF required documentation with the invoices and clearly indicate the eligible SRF disbursement amount. Reimbursable For personnel travels to the project site from an area outside of the San Francisco Bay Area and within the State of California, personal vehicle mileage reimbursement rates and meal allowance shall in accordance with the rates published by the State each year. See https://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx

4. At the beginning of each month, CONSULTANT shall prepare and submit to the City Project Manager a monthly invoice package. The City prefers processing CONSULTANT pay requests that cover one calendar month. Monthly invoice packages shall include the cost incurred during previous month including subconsultant cost and expenses, and a progress report documenting progress. The report shall include the progress by each task, the budget status (authorized amount, current billing, billed to date, previously billed, amount remaining, and percent spent), outstanding issues, potential changes, project schedule and schedule impacts. CONSULTANT shall ident ify and mitigate potential budget overruns; and notify CITY Project Manager as soon as the potential overrun is identified. If SRF funding is used, progress reports shall include a summary of SRF eligible costs per month.

Task 2: Preconstruction Phase

1. CONSULTANT shall perform reviews of construction drawings and specifications at varies levels of design, as directed by the CITY with focus on constructability of the project. (Note that the STU design is 100% completed). At a minimum, the CONSULTANT shall provide and log comments regarding the plans, specifications, and construction cost estimate in an Excel Workbook, provided by CITY. Comments should at a minimum include feedback on measurement and payment, sequencing, schedule, temporary facilities, constructability, and required contractor qualifications.

2. The City may assign milestone reviews of other projects in the preconstruction phase.

Reviews shall determine the coordination required between the subject project and other projects for concurrent work and the constructability of other projects following the completion of the subject project. This work shall be tracked via a separate subtask.

3. The City may request the COMSULTANT to attend the pre-bid meeting. CONSULTANT shall assist the City with evaluation of construction bids to determine bid irregularities, if any. The successful bidder will be based on the lowest responsive and responsible bid.

4. Administration
a. CONSULTANT shall propose a project administration procedure, including an

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online doc ument tracking system, for CITY approval. The administration procedure will detail how the CONSULTANT will track, store, distribute, and manage digital and hardcopy correspondence and project documentation and strategy for managing project communications.
b. CONSULTANT shall establish and maintain a health and safety plan specific for CONSULTANT’s staff and subconsultants. Submit a copy for City’s record.

During construction activities, CONSULTANT shall follow CONTRACTOR(S)’s health and safety plan(s), if it is more stringent.

5. Field Office Setup
a. CONSULTANT shall organize the hardcopy and digital files for the project prior to commencement of construction and coordinate with the CITY and CONTRACTOR for office trailer set-up.
b. CITY will designate a location for th e office tr ailer and provide utility connection points.
c. CONSULTANT will provide furnished office trailer, copier, phone/service, and internet access, unless otherwise provided by City.

6. Preconstruction Activities
a. Site Walk Observations and Documentation
i. CONSULTANT will conduct preconstruction inspections, documenting conditions in a log and providing digital photographs and video(s). b. Preconstruction Submittals
i. CONSULTANT to develop a list of CONTRACTOR pre -construction submittals.
ii. CONSULTANT to review CONTRACTOR’s pre-construction submittals, schedule of values, and preliminary schedule.

Task 3: State Revolving Fund (SRF) Compliance

1. CONSULTANT shall prepare and package for submittal all required State Revolving Fund (SRF) documentation needed to obtain monthly SRF loan disbursements during the construction period. CITY will submit the documentation to the State.

2. CONSULTANT shall prepare and package for submittal Quarterly Construction reports and Annual SBE Report required for SRF compliance. Package shall include a narrative and photos of construction activities performed during the reporting period. CITY will submit the documentation to the State.

3. CONSULTANT shall document CONTRACTOR’s compliance with all SRF requirements, including:
a. Project signage meeting SRF requirements
b. American Iron and Steel (AIS) requirements
c. Build America, Buy America (BABA) – if applicable to this project d. Davis-Bacon Act compliance
i. CONSULTANT shall perform Davis-Bacon Wage Rate Interviews at intervals required by SRF, but not less than every time a new contractor, subcontractor, or trade begins work. Subsequent

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interviews shall be required periodically based upon the CONSULTANT and CITY’s assessment of Risk of Noncompliance. e. Disadvantaged Business Enterprise (DBE) certifications f. Project Closeout forms
g. Certified payrolls

4. CONSULTANT shall maintain a submittal log of materials subject to AIS requirements and/or approved exemptions.

5. CONSULTANT shall prepare and package for submittal Project Close Out Report required for SRF compliance. CITY will submit the documentation to the State.

Task 4: Construction Phase

1. Construction Administration
a. Project Coordination
i. CONSULTANT shall act as the project coordinator and the point of contact for all communications with the CONTRACTOR. The CONSULTANT shall co ordinate construction activities of the CITY, ENGINEER, and CONTRACTOR. CONSULTANT responsibilities include:
conduct team meetings within the consulting firm to review progress, coordinate evaluations and identify information needs; disseminate information to the design team; manage the project budget; manage the project schedule; manage sub-consultants; manage QA / QC team; Coordinate communications with other ongoing projects’ construction managers to facilitate the construction of ongoing proj ects and continuous Plant operations.
ii. CONSULTANT shall provide a contact phone number to respond to issues related to construction activity or coordination, 24 hours a day, 7 days a week.
b. Document Tracking System: CONSULTANT shall establish, implement and maintain an online system for tracking all correspondence and documents on the Project or shall adopt a project administration procedure previously approved by CITY. CONSULTANT shall incorporate within the tracking system the means to track the routing of submittals/ RFIs to the CITY’s other consultants.
c. Construction Administration Services: CONSULTANT shall provide administrative and management services. The CONSULTANT shall receive all correspondence from the CONTRACTOR and address all inquiries from the CONTRACTOR and construction related correspondence. The ENGINEER will be responsible for providing design input.

2. Meetings:
a. CONSULTANT shall prepare agenda for kick -off meeting, weekly progress meetings and other construction/technical meetings required duri ng the term of the Project. CONSULTANT shall preside the meetings, address administrative and non- design issues, and prepare meeting minutes for distribution. CITY, ENGINEER and CONTRACTOR’s team will attend the

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meeting. The ENGINEER will address design issues. CONSULTANT shall have all pending decisions detailed for the meetings as well as project statistics (schedule updates, risks as identified by risk register, percent of project complete, near-term milestones, etc.).
b. Anticipated Meetings
i. Construction kick-off meeting
ii. Weekly progress meetings
iii. As-needed technical meetings with CITY, ENGINEER, CONTRACTOR and manufacturer’s representative(s) to resolve equipment and/or installation issues
iv. Minimum two (2) Electrical Service (Power Feed) Coordination Meeting with Palo Alto Electric Utilities (for LC11)
v. Project close-out Meeting
vi. Attend other concurrent projects’ kickoff meetings vii. Periodic coordination meetings with other ongoing projects’ construction managers and the City

3. Submittals
a. CONSULTANT shall use the o nline docum ent tracking system to log and coordinate the submittal process.
b. CONSULTANT shall receive the submittals, including CONTRACTOR’s red-line drawings, from the CONTRACTOR and check the submittals for completeness and general conformity with the Construction C ontract requirements. If obvious deficiencies are apparent in the submittal, the CONSULTANT shall reject and send the submittal back to the CONTRACTOR for correction.
c. CONSULTANT shall route the submittals to the ENGINEER for review and shall rou te the revi ewed submittal back to the CONTRACTOR. The CONSULTANT shall review comments on the submittals to determine if additional follow -up with the CONTRACTOR and/or ENGINEER is warranted and to identify any scope changes.
d. CONSULTANT shall coordinate the ENGINEER’ s submittal review and the track the status of shop drawing resubmittals with the CONTRACTOR. e. CONSULTANT shall review the submittals for progress schedule, temporary facilities, construction sequencing, conduit/pipe layout plan, manufacturer/applicator/installer’s certificates, and other non- technical submittals.
f. CONSULTANT shall review temporary facilities submittals for operability as well as conflicts with other ongoing projects’ active and/or proposed construction. The City may request CONSU LTANT to re view other ongoing projects’ temporary facilities submittals for coordination logistics and constructability issues.

4. Request for Information/Clarification Process

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a. CONSULTANT shall utilize the online document tracking system for processing requests for design clarifications.
b. CONSULTANT shall receive all requests for information (RFIs) from the CONTRACTOR and determine if the request is a valid RFI; i. If valid, ENGINEER will review the RFIs and provide design response.

CONSULTANT shall review the ENG INEER’s res ponse, verify acceptability of response and transmit the Clarification Response to the CONTRACTOR.
ii. If not, CONSULTANT shall return the RFI to the CONTRACTOR with justifications.
c. CONSULTANT shall provide a response within 10 working days to the CONTRACTOR for any administrative, field condition specific and general RFI.
d. ENGINEER shall prepare Design Clarifications where design issues are identified by the CONSULTANT, ENGINEER, or CITY. CONSULTANT shall prepare the Clarification Letter for transmittal to the CONTRACTOR of the ENGINEER’s Design Clarification and other clarifications. e. CONSULTANT shall work with the CITY Project Manager to maintain an Error and Omission Log to document change orders, RFIs and RFCs that are a result of ENGINEER and CONTRACTOR errors in design and construction, respectively. The log shall record the hours spent by the ENGINEER to respond to the RFIs/ RFCs and associated cost impact to the construction.

CITY may seek reimbursement from the ENGINEER and/or CONTRACTOR.

5. Change Order Preparation, Negotiation & Processing
a. CONSULTANT shall review all change order requests (either initiated by the CITY or by the CONTRACTOR).
i. CONSULTANT shall utilize the online document tracking system to log, track, and process changes.
ii. CONSULTANT shall maintain Change Event files. These files shall compile all data related to specific items that arise that may have cost or time impacts or neither.
b. CONSULTANT shall judge the validity and/or merits of all CONTRACTOR initiated change order requests. CONTRACTOR initiated change orders deemed unnecessary, or not substantiated by a deficiency in the construction documents shall be returned to CONTRACTOR unapproved with an explanation.
c. CONSULTANT shall negotiate change orders with the CONTRACTOR, considering impact to the schedule, as well as, reasonableness of cost, and impact to total project budget. CONSULTANT shall provide updates regarding potential cost and schedule changes to CITY.
d. CONSULTANT shall prepare an independent cost estimate and/or verify the acceptability of the CONTRACTOR’s cost proposal for each approved

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change request. At CITY’s discretion, ENGINEER’s opinion may be requested for specific equipment and material costs.
e. CONSULTANT shall prepare change orders using CITY’s procedure for execution by the CITY and CONTRACTOR.
i. CONSULTANT shall prepare a Change Order Memorandum, if requested by the CITY, to provide additional background discussion for need of the change and reasonableness of cost and schedule impact.
ii. ENGINEER shall prepare design details for change requests as needed.

CONSULTANT to coordinate schedule and distribution of design details.
iii. CONSULTANT shall prepare, and issue approved change order requests to the CONTRACTOR with the appropriate design documents as directed by the CITY.
f. In the event the CONTRACTOR encounters a time sensitive problem where time is not available to negotiate a settlement, CONSULTANT shall issue a field order in accordance with the City’s procedures.
i. All work done under a field order will be completed on a time and material basis. CONSULTANT to track actual time and material expended for the field order work.
ii. Field orders shall be reviewed and approved with the CITY prior to issuance.

6. Documentation of Environmental Compliance
a. CONSULTANT shall document compliance with environmental permitting and mitigation measures in accordance with the requirements of the environmental documents and regulatory permits.

7. Progress Payment
a. CONSULTANT shall review the initial schedule of values (cost breakdown) prepared by the CONTRACTOR and generate a progress payment request form for the CONTRACTOR’s use which is compatible with the SRF CONTRACTOR Spreadsheet (Form No. 259) and acceptable to SRF, Financial Assistance Division.
b. CONSULTANT shall review and process the progress payment requests and determine whether the amount requested reflects the actual status of the Contractor’s work in place, materials on site and other contract requirements.
c. CONSULTANT shall perform the appropriate administration, preparation and processing of the monthly progress payments so the CITY can respond in accordance with the time periods set forth in the Public Contract Code. d. CONSULTANT shall prepare the summary cover sheet for the progress payments which will be executed by CONSULTANT, CONTRACTO R and CITY.

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e. CONSULTANT shall not recommend final payment to the CONTRACTOR until the CONSULTANT has determined CONTRACTOR has complied with the project closeout requirements, including submittals of record documents, warranties, and operations and maintena nce manuals. CITY will release the retention only after a Notice of Completion has been recorded with the Santa Clara County Clerk’s Recorder Office.
f. CONSULTANT shall work with Contractor to develop an estimate of contractor’s anticipated monthly pay request (billing/invoicing) schedule for the entire duration of the construction phase. The estimate shall be updated quarterly. The information will be used by the City for financial and cash flow analyses.

8. CONTRACTOR’s Certified Payroll
a. On a bi -weekly basis, or when otherwise requested by the CITY, State, or other agency or public inquiry, the CONSULTANT shall collect certified payrolls from the CONTRACTOR. Apart from the regular, bi- weekly collection, the CONSULTANT shall obtain payroll records within 10 days of the CITY’s request.
b. CONTRACTOR is responsible for submitting electronically their certified payroll records to the State Department of Industrial Relations. c. CONSULTANT shall be responsible for documenting and conducting interviews of the CONTRACTOR’s field staff/crew for compliance with CITY prevailing wage ordinance and SRF requirements (SF-1445).

9. Schedule
a. CONSULTANT shall review CONTRACTOR’s initial Baseline schedule submittal to determine whether it is realistic and prepared in accordance with the Contract Documents, that the milestone and Substantial Completion dates meet the overall goal for schedule and that no major conflicts exist. The CONSULTANT shall advise CITY of the review determination and provide written comments to the CONTRACTOR.
b. CONSULTANT shall review the CONTRACTOR’s schedule updates and provide written comments to the CONTRACTOR.
c. CONSULTANT shall review and evaluate the CONTRACTOR’s requests for Contract time extension and/or monetary claim, and make written recommendations to the CITY regarding entitlement and the number of days, if any, to be added to the Contract Time(s). If requested by the CITY, CONSULTANT shall provide a written assessment of the time request. CONSULTANT shall evaluate and negotiate schedule adjustments with the CONTRACTOR.

10. Field Quality Control (Inspection Services)
a. CONSULTANT shall provide field observation services to monitor compliance with the Contract Documents.
i. CONSULTANT staff shall have sufficient training and experience

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regarding the specific constructi on activities being performed by CONTRACTOR.
1) CONSULTANT shall provide staffing at a level that match construction load and as required to observe CONTRACTOR’s activities.
2) CONSULTANT shall provide subconsultant(s) as needed to observe specialty work or conduct specialty tests (see Special Inspections).
3) CITY may set an allowance on a task order specific basis for the increased cost only of inspectional services if required during off hours and on weekends. Consultant to provide sufficient hours to cover all inspectional services anticipated at standard rates.
b. Reporting
i. CONSULTANT shall prepare daily inspection reports documenting observed field activities, field crews, CONTRACTOR equipment, and field problems. CONSULTANT shall collect and compile CONTRACTOR daily reports. Such information shall be accessible by the City. ii. CONSULTANT shall provide and maintain photographs of field activities for status monitoring of the project.
iii. CONSULTANT shall monitor record documents (redline drawings) on a bi-weekly basis to determine i f they are being maintained by the CONTRACTOR and are in substantial conformance with the
CONSULTANT’s information/observations.
iv. CONSULTANT shall prepare a monthly report to include major work performed, outstanding issues, project photographs, schedule status, pending and executed change orders summary, and quality issues.

This report shall also be part of CONSULTANT’s monthly progress payment report.
c. Special Inspections
i. CONSULTANT shall furnish the materials testing and special inspections required to be performed for the Project. Special Inspection and materials testing include, but not limited to:
1) Soils testing for HazMat compliance
2) Soils compaction and relevant testing
3) Asphalt compaction and relevant testing
4) Concrete sampling and testing
5) Structural steel welding
6) Coating inspection
7) Special inspections as listed in the project specific design drawings and specs.

It should be noted that the foundation pile installation

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observation special inspections will be performed by the Geotechnical Engineer (retained by the ENGINEER) on this project. CONSULTANT only needs to coordinate this effort with the City Project Manager.
ii. CONSULTANT shall schedule and coordinate the material testing services and have responsibility for the specialty inspections and testing services.

11. System Outages
a. CONSULTANT shall review and evaluate the CONTRACTOR’s system outage requests (SOR) in conjunction with the CITY. CONSULTANT shall assess the reasonableness of the duration of the requested shutdown. b. The SORs shall be reviewed and approved at least two weeks ahead of the actual outage/shutdown.
c. CONSULTANT shall facilitate/coordinate shutdowns with the CONTRACTOR, CITY and ENGINEER.
i. CITY is responsible for reviewing and approving system outage request and duration, confirming the outage is properly planned, implementing the outage, and bringing services back online after the outage.

12. Means and Methods of Construction
a. CONSULTANT shall not direct the means and methods of construction.

CONTRACTOR shall be solely responsible for the means and methods of construction. In the event when the CONTRACTOR’s means and methods and/or work sequence are perceived to have negative impacts on the final work quality or may damage existing City’s property, the CONSULTANT shall communicate with the CONTRACTOR and inform the CITY and ENGINEER.

13. Construction Staging and laydown Area
CONSULTANT shall periodically observe the construction staging and laydown areas to check if:
a. Equipment and materials are being stored in accordance with the manufacturers’ procedure (e.g., protection from weathering elements). b. Exiting plant equipment (e.g., electrical switchgear) are being protected. c. Heavy loads are not concentrated at or adjacent to locations were underground utility (s) is present.

14. Safety
a. CONSULTANT shall c omply with appropriate regulatory, project and CITY codes in addition to CONSULTANT’s Health and Safety Plan regarding necessary safety equipment and procedures used during performance of the CONSULTANT’s work and shall take necessary precautions for safe operation o f the CONSULTANT’s work, and the protection of the CONSULTANT’s personnel from injury and damage from such work. b. Neither the professional activities of the CONSULTANT, nor the presence of

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the CONSULTANT’s employees or sub- consultants at the
construction/project site, shall relieve the CONTRACTOR and any other entity of their obligations, duties and responsibilities including, but not limited to, construction means, methods, sequence, techniques or procedures necessary for performing, superintending, or coordinating their work in accordance with the Contract Documents, City codes, and any health or safety pre cautions required by pertinent regulatory agencies. CONSULTANT and its personnel have no authority to exercise any control over any CONTRACTOR or other entity or their employees in connection with their work or any health or safety precautions.

15. Spare Parts
a. Based on the specifications and vendor O&M Manuals, CONSULTANT shall prepare a consolidated/complete list of required spare parts in Excel. b. CONSULTANT s hall inventory spare parts as they are delivered by the CONTRACTOR and transferred to the CITY. The transfer of part shall be documented via material transmittal, signed by Contractor, CONSULTANT and CITY.

16. Operation and Maintenance (O&M) Manuals
a. CONSULTANT shall prepare a list of anticipated O&M Manuals and track the submittal and review process in the online document tracking system. b. CONSULTANT shall verify that the submitted O&M manuals are the correct and latest version, and that the ‘lessons learned’ and notes taken during startup and commissioning are included in the O&M manuals.

CONSULTANT shall coordinate delivery of final hardcopies and electronic copy from the CONTRACTOR to CITY.

17. Testing and Training
a. CONSULTANT shall coordinate and oversee manufacturer/vendor provided testing/startup/commissioning activities and training sessions. b. ENGINEER shall provide technical assistance associated with the design intent during testing/startup/commissioning operations. c. CONTRACTOR shall develop and submi t a Testing and Startup Plan.

CONSULTANT shall work with CONTRACTOR, ENGINEER and CITY on the review and revision of the Testing and Startup Plan.
d. CONSULTANT shall observe start-up and testing as the CITY’s representative and maintain copies of start -up documentation in an organized binder (and scanned electronic copy) that shall be turned over at the end of the project.
e. CONSULTANT shall coordinate the training with the CONTRACTOR, vendor and CITY staff. Some equipment may need training for third party personnel with whom the CITY may be contracting with. CITY will provide the vendor contact information for CONSULTANT to coordinate with.

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Trainings shall be coordinated so that key CITY staff can attend; schedule shall accommodate key CITY staff/ Plant operati ons shifts. Multiple training sessions for day shift and night shift operators may be required. f. CONSULTANT shall attend training sessions and collect attendance sheets and copies of training material.
g. If required by CITY, CONSULTANT shall coordinate production quality audio and video recording and editing of training sessions to be used for future training sessions. The final digital copy shall be labeled and have an introduction that indicates the type of training, the process area, the equipment name, the vendor(s) / manufacturer(s) if applicable, the date, and the CONTRACTOR.
h. Refer to the CITY’s Demonstration and Training Standards for more details.

18. Corrective Work Item List
a. The CONSULTANT shall prepare and maintain a Corrective Work Item list (CWL) with the input from the CITY and ENGINEER.
b. CONSULTANT shall confirm that the items identified in the CWL are completed in preparation for issuance of Substantial Completion Certificate (SCC).
c. CONSULTANT shall prepare the SCC for execution by the CITY and the CONTRACTOR when the Corrective Work Items are completed to the CITY’s, ENGINEER’s and The CONSULTANT’s satisfaction.

E. Task 5: Project Closeout Phase

1. Punch List and Final Inspection
a. Punch List
i. CONSULTANT shall identify work with outstanding deficiencies and generate Punch List in Excel. Coordinate site walkthrough with the CITY and CONTRACTOR, as needed.
ii. CONSULTANT shall have primary responsibility for verifying that the Punch List work is complete.
b. Final Inspection
i. CONSULTANT shall have primary responsibility for con ducting the final inspection. Coordinate site walkthrough with the CITY and CONTRACTOR, as needed.
1) CITY will participate and provide input on the final inspection. 2) ENGINEER will provide design input on final inspection items if determined necessary by the CITY.

2. Warranty Coordination
a. CONSULTANT shall maintain a warranty file in the online document tracking system. All warranty documentation shall be handed off to the CITY at conclusion of the contract.

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3. Project Closeout
a. CONTRACTOR shall furnish record documents, which the CONSULTANT shall review and transmit to ENGINEER for preparation of record drawings. b. CONSULTANT shall prepare necessary CITY documentation recommending acceptance of the completed work by the CITY.
c. CONSULTANT shall turnover project documentation to the CITY in an orderly manner and in a timely manner after completion of the project and all punch list activities. The CONSULTANT shall retain all change event files at the end of the project. The CITY shall have the right to request review and/or copies of the change events files.

Work Order No. 3: Milestone Schedule Of Performance

TASK # MILESTONES NUMBER OF WEEKS TO COMPLETION FROM
WORK ORDER #1 NOTICE TO PROCEED (NTP)
Task 1 General Requirements 276 Weeks
Task 2 Pre-Construction 10 Weeks
Task 3 SRF Compliance 276 Weeks
Task 4 Construction Phase 263 Weeks
Task 5 Project Closeout 276 Weeks

Work Order No. 3: Milestone Compensation Schedule

TASK # MILESTONES NOT TO EXCEED
AMOUNT
Task 1 General Requirements $137,470
Task 2 Pre-Construction $41,200
Task 3 SRF Compliance $241,310
Task 4 Construction Phase $6,870,421
Task 5 Project Closeout $47,800
Inspection Allowance $150,000
Sub-total Basic Services $7,488,201 Reimbursable Expenses $0 Total Basic Services and Reimbursable Expenses $7,488,201 Additional Services (per Section 4) (Not to Exceed) $748,820 Maximum Total Compensation $8,237,021

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EXHIBIT “B”
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2
(AMENDED, REPLACES PREVIOUS)

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.

WORK ORDER #2

Tasks 1-5 completed within 125 Weeks from the Notice to Proceed for Work Order 2, as detailed in the Milestone Schedule of Performance attached to Work Order #2.

WORK ORDER #3

Tasks 1-5 completed within 276 Weeks from the Notice to Proceed for Work Order 3, as detailed in the Milestone Schedule of Performance attached to Work Order #3.

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Vers.: Aug. 5, 2019

EXHIBIT “C”
COMPENSATION, AMENDMENT #2
(AMENDED, REPLACES PREVIOUS)

CITY agrees to compensate CONSULTANT for on -call, as -needed, time -limited pro ject support services performed in accordance with the terms and conditions of this Agreement, and as set forth in a specific Task Order budget schedule. 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 in a specific Task Order.

CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories within a specific Task Order, 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 this Agreement shall be at no cost to the CITY.

REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopy ing, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

Reimbursable expenses, if any are specif ied 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.

WORK ORDER #2

Compensation as detailed in the Milestone Compensation Schedule attached to Work Order #2., Not to Exceed:

Total Basic Services and Reimbursable Expenses $549,315 Additional Services (per Section 4) (Not to Exceed) $54,932 Maximum Total Compensation $604,247

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Vers.: Aug. 5, 2019

WORK ORDER #3

Compensation as detailed in the Milestone Compensation Schedule attached to Work Order #3., Not to Exceed:

Total Basic Services and Reimbursable Expenses $7,488,201 Additional Services (per Section 4) (Not to Exceed) $748,820 Maximum Total Compensation $8,237,021

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Resolution No. ####
Resolution of the Council of the City of Palo Alto Authorizing the Reimbursement of Funding for the Regional Water Quality Control Plant Secondary Treatment Upgrades from the State Water Resource Control Board

R E C I T A L S

A. The City of Palo Alto (the “ City”) desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, pipelines and other infrastructure (the "Project").

B. The City intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board).

C. The State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations").

D. Prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the City desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the City.

E. The City has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary for the State Water Board to reimburse the City for the Expenditures from the proceeds of the Obligations.

F. On March 1, 2021, the City Council adopted Resolution No. 9945 authorizing reimbursement of funding for the Regional Water Quality Control Plant Secondary Treatment Upgrades with a reasonably expected maximum principal amount of $169 million.

G. The City published an invitation for bids for the construction contract for Project from July 21, 2022 to October 6, 2022 and received base bids ranging from $161.8 million to $167.5 million, approximately 36% higher than the Engineer’s estimate of $118.7 million.

H. The City now wishes to amend Resolution No. 9945 and adopt this Resolution

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increasing the reasonably expected maximum principal amount to $193 million to reflect the higher-than-anticipated construction costs, as well as contingency and construction management, and associated planning and design costs.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. The City hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligati ons or the approval by the State Water Board of the Project Funds.

SECTION 2. The City hereby amends Resolution No. 9945 to increase the reasonably expected maximum principal amount of the total Project, including associated planning and design costs, to $193 million.

SECTION 3. This resolution is being adopted no later than 60 days after the date on which the City will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.

SECTION 4. Each City expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.

SECTION 5. To the best of our knowledge, the City is not aware of the previous adoption of official intents by the City that have been made as a matter of co urse for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.

SECTION 6. This resolution is adopted as official intent of the City in order to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs.

SECTION 7. All the recitals in this Resolution are true and correct and this City so finds, determines and represents.

SECTION 8. The Council finds that its authorization of funding reimbursement does not constitute a project requiring review under the California Environmental Quality Act (CEQA) or CEQA Guidelines. This action does not meet the definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

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ABSTENTI
ONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

Senior Deputy City Attorney City Manager

Director of Public Works

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BIDDER Bid  Price Remarks %  Over Estimate
Anderson Pacific Engineering Construction, Inc.
(APEC) 161,846,500$        Low Bidder 36.34%
Kiewit Infrastructure West 166,240,500 $        40.04%
Flatiron West 167,518,500 $        41.12%
Engineer's Estimate 118,707,335 $        0.00%
Bid Summary
Secondary Treatment Upgrades (STU) Project
Invitation for Bids (IFB) Number: 185822
City of Palo Alto Public Works Department, RWQCP
CIP WQ‐19001

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Attachment H: RWQCP Monthly / 30‐day Average Influent Flow in Million Gallons per day with Sewershed Population October 1972 to October 2022

120
140
160
180
200
220
240
260
10 15
20 25
30 35
40 45
RWQCP MONTHLY / 30‐DAY AVERAGE INFLUENT FLOW
MILLION GALLONS PER DAY (LEFT)
SEWERSHED POPULATION (THOUSANDS @ RIGHT)

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Attachment H: Partner Capacity and Share
Los Altos Mountain  View
East Palo Alto
Sanitary District
Stanford
University Los  Altos Hills Palo  Alto Total

3.80 15.10 3.06 2.11 0.63 15.30 40.00
Los Altos Mountain  View
East Palo Alto
Sanitary District
Stanford
University Los  Altos Hills Palo  Alto Total

9.47% 37.89% 7.64% 5.26% 1.58% 38.16% 100%
Fiscal
Year Los  Altos Mountain  View
East Palo Alto
Sanitary District
Stanford
University Los  Altos Hills Palo  Alto
Average
Annual
Flow
(mgd)
2022 11.58% 40.22% 7.29% 6.19% 2.35% 32.37% 15.4
2021 10.84% 42.08% 6.15% 3.77% 2.31% 34.85% 15.1
2020 10.84% 41.63% 6.34% 4.61% 2.04% 34.55% 17.2
2019 9.90% 39.46% 6.78% 6.18% 1.76% 35.92% 19.1
2018 10.40% 38.11% 7.16% 7.03% 1.93% 35.37% 17.7
2017 9.83% 38.71% 6.95% 6.75% 1.56% 36.20% 19.7
2016 10.03% 38.45% 6.68% 7.00% 1.51% 36.33% 17.5
2015 10.30% 39.24% 6.22% 6.85% 1.41% 35.98% 17.8
2014 10.38% 38.75% 6.24% 6.31% 1.41% 36.91% 19.7
2013 9.86% 38.14% 6.41% 6.14% 1.28% 38.18% 20.7
2012 9.41% 36.79% 6.42% 6.13% 1.17% 40.08% 22.3
2011 10.35% 35.71% 6.80% 6.80% 1.14% 39.21% 23.7
2010 10.86% 36.76% 6.47% 6.27% 1.16% 38.48% 22.4
2009 11.72% 37.21% 7.15% 5.99% 1.15% 36.78% 21.8
2008 11.55% 37.84% 7.18% 5.98% 1.20% 36.25% 23.3
2007 10.78% 38.99% 7.38% 5.81% 1.05% 35.99% 24.0
2006 10.62% 38.96% 7.83% 5.75% 0.98% 35.86% 27.0
2005 11.90% 37.17% 7.72% 5.52% 1.06% 36.63% 24.9
2004 12.96% 37.43% 7.55% 5.35% 0.94% 35.77% 24.4
2003 13.32% 37.01% 7.17% 5.57% 0.93% 36.00% 25.3
2002 12.79% 36.63% 7.47% 5.20% 0.91% 37.00% 25.0
2001 11.98% 39.77% 6.89% 5.20% 0.83% 35.33% 26.6
2000 11.92% 39.09% 6.86% 5.34% 0.80% 35.99% 27.1
1999 11.99% 39.67% 6.80% 4.85% 0.77% 35.92% 25.8
1998 11.87% 39.40% 7.17% 3.92% 0.73% 36.91% 28.4
1997 11.95% 40.87% 6.97% 4.02% 0.74% 35.45% 25.9
1996 11.54% 40.93% 7.12% 4.01% 0.76% 35.64% 25.5
1995 11.45% 40.68% 6.91% 4.79% 0.79% 35.38% 24.9
PARTNERS' CONTRIBUTING SHARE OF
WASTEWATER TREATMENT FUND OPERATING BUDGET
FIXED CAPACITY SHARE OF CAPITAL ASSETS FOR DEBT SERVICE SHARE MAXIMUM FLOW CAPACITY RIGHTS EXPRESSED IN ANNUAL AVERAGE FLOW MILLION GALLONS  PER DAY

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1 ATTACHMENT H: NEIGHBORING AGENCY INFORMATION
WASTEWATER MONTHLY RESIDENTIAL BILL ($) NOVEMBER 2022
Palo Alto is 28% below
comparison city average
Menlo
Park
Redwood
City
Santa
Clara
Mountain
View Los  Altos Hayward

44.62     106.67      89.28       46.82     50.10       42.05     38.58 Palo Alto
Neighboring Communities

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2 ATTACHMENT H: NEIGHBORING AGENCY INFORMATION
WASTEWATER MONTHLY NON‐RESIDENTIAL BILL ($) NOVEMBER 2022 Commercial: Palo Alto is 7% higher than
comparison city average
Restaurant: Palo Alto is 12% below
comparison city average
Menlo
Park
Redwood
City
Santa
Clara
Mountain
View Los  Altos Hayward
General
Commercial 116.62    144.34      117.74      75.74     156.66     72.23       87.92 Restaurant 696.08    1,216.88  1,128.40  718.48  718.48     288.90    660.80 Palo Alto
Neighboring Communities

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ATTACHMENT H: NEIGHBORING AGENCY INFORMATION
MONTHLY RESIDENTIAL SEWER UTILITY BILL: FISCAL YEAR 2023 Agency                Cost Agency                  Cost Palo Alto RWQCP Sewershed San Jose Plant Sewershed
Palo Alto $44.62 Cupertino $58.30
Mountain View $50.10 San  Jose $45.49
Los Altos (Note 1) $42.05 Milpitas $62.07
Los Altos Hills  $136.92 Santa  Clara $46.82
EPASD $50.00 Sunnyvale Plant Sewershed
Stanford N/A Sunnyvale $57.19
Note 1. Los Altos fee is approximated as follows: [$283.99/year base charge + $2.28/unit * average of 92 units/year for single family residential] /12 months =appx $42.05/month.

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ATTACHMENT H: NEIGHBORING AGENCY INFORMATION, CONT.

MONTHLY RESIDENTIAL SEWER UTILITY BILL: FISCAL YEAR 2023 Agency  Cost Agency  Cost
Silicon Valley Clean Water Plant Sewershed
Redwood City $89.28 Harbor  Industrial SMD $53.75
West Bay Sanitary District $106.67 Fair  Oaks SMD $84.58 San Carlos $116.77 Oak  Knolls SMD $128.75
Belmont $128.31 Kensington  Square SMD $137.50
Emerald Lake SMD $142.92 Devonshire  CSD $135.00
Emerald Lake Heights SMD $142.92 Edgewood  SMD $137.92
Scenic Heights CSD $182.92
SMD = San Mateo County Administered Sewer Maintenance District CSD = San Mateo County Administered County Sanitation District

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City of Palo Alto (ID # 14826)
City Council Staff Report

Report Type: Action Items Meeting Date: 12/5/2022

City of Palo Alto Page 1
Summary Title: 1700 Embarcadero Road: New Automobile Dealership Title: PUBLIC HEARING / QUASI -JUDICIAL. 1700 Embarcadero Road [21PLN - 00191]: Consideration of a Site and Design Review, Design Enhance Exception, Variance and Off -Street Loading Space Modifica tion to Allow the Demolition of a Vacant Restaurant and the Construction of a new two -Story 31,000 Square Foot Automobile Dealership. The PTC and the ARB Recommend Approval of the Project. Environmental Assessment: Addendum to a Mitigated Negative Declarat ion. Zoning District: CS(D)(AD) Service Commercial (Site & Design Review / Automobile Dealership Combining Districts).

From: City Manager
Lead Department: Planning and Development Services

Recommendation
Adopt the Record of Land Use Action approving a new car dealership and requests for a Site and Design, Variance, and Design Enhancement Exception based on findings and subject to the conditions of approval contained in Attachment B.

Executive Summary
The project seeks to redevelop the subject parcel, whi ch includes the former Ming’s restaurant building. The applicant, Swickard Auto Group, proposes to demolish the existing building to construct a new two -story Mercedes -Benz automobile dealership. The project includes the design and construct ion of a new multi-use ( bicycle & pedestrian) path along East Bayshore Road and Embarcadero Road . The new path will eliminate a gap identified in the City’s Bicycle and Pedestrian Transportation Plan.

The applicant requests the following:
• Site and Design approval for th e construction of a single building and ancillary site improvements near the City’s Baylands Preserve.
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City of Palo Alto Page 2
• Variance approval to allow a deviation from the required parking lot shading requirement due to the shape of the subject parcel and easements precluding the planting of canopy trees.
• Design Enhancement Exception (DEE) approval to allow a greater building setback from East Bayshore Road and Embarcadero Road
The purpose of this report is for the City Council to consider the applicant’s requests, the previous public hearing meeting materials (staff reports and meeting minutes), written correspondence, and findings for the project. This report elaborates on issues identified as concerns through the review process related to the proposed bicycle path, parking lo t shading, setbacks, and adjacency to the Baylands Preserve.

On October 26, 2022, the Planning and Transportation Commission (PTC) recommended that the City Council adopt the Site and Design Review findings. On November 3, 2022, the Architectural Review Board (ARB) recommended that the City Council approve the project.

Background
Prior City Reviews & Action
There have been two previous attempts to develop the subject property with an automobile dealership. The initial applicant withdrew and sold the prop erty following the City Council direction for project modifications in June 2016. A subsequent owner received approval for a rezone and development entitlement on June 24, 2019. However, the owner ultimately sold the property to the current owner. Attachment D includes links to the previous meetings and minutes held for the subject property.

Planning & Transportation Commission
The PTC conducted a duly noticed public hearing on October 26, 2022 , on the Site and Design Review and Variance applications withi n its purview. The PTC unanimously recommended approval of these applications, consistent with staff findings, recommending modifications to the draft Record of Land Use Action (ROLUA) conditions (shown as strikeout and underline in Attachment B). Specifically, these modifications related to improvements on adjacent property, a storm drain easement and extent of repairs necessary to address any damage from construction on public streets. A member of the Palo Alto Bicycle Advisory Committee (PABAC) spoke in favor of the inclusion of a Class I multi -use path in the project, while a neighboring property owner spoke regarding the potential acoustic impacts from the car wash facility.

Architectural Review Board
The ARB reviewed the current project twice, most re cently on November 3, 2022. In previous meetings, the ARB discussed the bicycle path, parking lot shading, plant palette, and architectural materials. The ARB unanimously recommended approval of the project consistent with staff findings, recommending modifications to the ROLUA conditions (shown as underlined text in Attachment B). Specifically, these modifications are necessary for the applicant to 9 Packet Pg. 231

City of Palo Alto Page 3
confirm certain architectural and landscape details with the ARB Ad Hoc Subcommittee. In addition, conditions of approval were added addressing loading/unloading and ensuring that the project would complete an acoustic analysis to comply with the City’s noise requirements.

The ARB heard testimony regarding acoustic impacts from the car wash facility.

Discussion
The project site (site) consists of a single parcel (2.54 acres). The site is located on the southeast corner of Embarcadero Road and East Bayshore Road (see location map, Attachment A). The site has a Comprehensive Plan (Comp Plan) land use designation of Service Commercial, and the Comp Plan identifies the site as within the “East Bayshore Employment Center.” Zoning for the site is Commercial Service (CS) with Site and Design Review (D) and Automobile Dealership (AD) combining districts. The site is loca ted within the City’s Baylands Master Plan (Privately Owned Lands) and is subject to its design guidelines. The applicant also owns the adjacent Audi dealership (1730 Embarcadero Road).

A portion of the site is developed with a single -story commercial bui lding with 15,207 square feet of floor area built in 1968, formerly the Ming’s Restaurant , and a large surface parking lot.

Prior evaluation of the site determined that the building is not considered historic. The existing architecture of the building is characteristic of mid-century modern architecture with some roof elements reminiscent of an Asian style, the cuisine of the former restaurant.

The site includes an approximate 80 -foot-wide easement area along East Bayshore Road to accommodate overhead high-voltage electric transmission lines parallel to East Bayshore Road, and a sub-surface storm drain line. Surface improvements , such as landscaping, driveways, and parking, are allowed within the easement; however, there are restrictions on the height of an y new improvements, including trees. Mature Chinese Elms are currently located under the high- voltage electric transmission lines.

Neighborhood Setting and Character
The project is located within the Baylands Master Plan Area in an area designated as “Pri vately Owned Lands.” This is an urbanized built -out area that includes office buildings and automobile dealerships. The property does not directly abut the Baylands preservation property (former ITT, Inc. lands) but is visible from the Renzel Trail within the Baylands. See plans for photographs of surrounding areas (Attachment F).

Most sites in the vicinity are zoned Research, Office and Limited Manufacturing (ROLM) with the Automobile Dealership (AD) Combining District. The ROLM allowable Floor Area Ratio (FAR) is 0.4:1, whereas the AD Combining District allows a 0.6:1 FAR for automobile dealerships. The area within the ROLM district is generally characterized by two-story buildings surrounded by parking lots with large street -facing setbacks. The Pacific Gas & Electric (PG&E) easement along 9 Packet Pg. 232

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East Bayshore includes tall towers carrying high-voltage transmission electric lines. One tower is located on the property at the Embarcadero Road and East Bayshore Road intersection.

Proposed Project
The applicant pro poses to demolish the existing building and surface parking lot. In its place, the applicant would construct a new two -story Mercedes-Benz automobile dealership building.

Access to the site will include two -way driveways from East Bayshore and Embarcadero Road.

Customer, employee, inventory, and display parking will be located along the west, south , and eastern portions of the property in a tandem parking configuration. An existing driveway connection between the subject property and the Audi dealership would remain in the rear.

The Mercedes -Benz dealership would include 31,195 square feet of space for a showroom, sales and administrative offices, vehicle servicing areas, parts storage, car wash , and recycling/solid waste enclosure areas. The 4,499 square f oot covered service drive would be exempted under the Palo Alto Municipal Code (PAMC) section 18.30(F)(a)(3)(b) from floor area calculations. The total floor area represents a 0.28:1 Floor Area Ratio where 0.6:1 is permitted.

A single -lane automated car w ash facility would be located along the south elevation of the building towards the rear. A single-vehicle display pad is proposed to be located adjacent to the utility tower at the front corner of the property.

Summary of Key Issues
During the PTC and AR B public hearings , there were discussions and comments regarding the project’s compliance with the PAMC, achieving Comprehensive Plan goals and objectives , and achieving the goals of the Baylands Master Plan.

Bicycle path
There is a gap in the City’s bicy cle network at this location. At the recommendation of the City, the project includes a multi -use path that can accommodate bicyclists and pedestrians along Bayshore Road and Embarcadero Road. There are constraints in locating the pathway, such as the existing electrical utility easement and limitations on vertical features within the easement; the location of the electrical transmission tower and its maintenance parking space; existing mature street trees; the need to have native and drought tolerant lands caping; and the project’s objective in having locations for display and inventory merchandise to support the viability of the automobile dealership.

Initially, the project did not include the bicycle path. Staff and the ARB commented that the previously approved project included a multi -use pathway and stressed that the project should include the pathway. The ARB went further to suggest that a row of parking be removed to accommodate both the existing trees and the pathway. Another reason to incorporate a multi- use path is to meet the City’s Transportation Demand Management (TDM) requirements.

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for repair services, the potential to reduce single -occupancy car trips by service customers does not exist. As a result, the project cannot meet the City’s TDM policy to reduce car trips by 20%.

In addition, the site is not well served by public transportation.

In response to th ese comments, the revised plans include a 10-foot-wide multi-use path along East Bayshore Road and an eight -foot path along Embarcadero Road. To accommodate this path, 11 trees are proposed for removal. Only one of these trees is considered “protected” pursuant to PAMC Chapter 8.10.020. Twenty ne w trees are proposed along the street frontage.

One existing Chinese elm tree will remain. No onsite parking would need to be removed to accommodate the path. The incorporation of the multi -use path is consistent with the City’s Palo Alto Bicycle & Pedestr ian Transportation Plan and would be acceptable from a staff perspective as an alternative method to meet the TDM policy.

PTC members were concerned about the loss of the mature trees but were reassured other trees would be planted as replacements. Ultima tely, the PTC endorsed the proposal citing the TDM requirements and overall benefits of the pathway . The ARB likewise supported the concept and included a condition of approval enabling an ARB Ad Hoc Subcommittee to view detailed drawings of the multi-use path.

Parking Lot Shading
PAMC 18.54 (Parking Facility Design Standards) includes landscaping requirements for parking lots. One of the requirements pertains to tree canopies that result in 50% shading of parking lot surface areas within 15 years. Prior a utomobile dealership proposals on this site have struggled to meet this standard but accomplished it. Parking lot areas include parking spaces and drive aisles. Automobile dealerships typically have larger parking lot areas that include customer and employee parking as well as inventory to be sold. Prior proposals for this site included parking structures and automated parking solutions that consolidated inventory and employee parking , leaving a smaller footprint for customer parking at the perimeter of the dealership.

During the first ARB meeting, parking shading requirements were discussed, and the applicant responded with a plan that increased the overall shading to 41% from 38% despite the removal of trees along the frontage to accommodate the multi-use path.

The East Bayshore Road and Embarcadero Road frontage is encumbered by several underground and overground easements including PG&E and City infrastructure. The easements account for over 26% of the property area. These easements restrict the placem ent of structures and vegetation. Due to the special circumstances of these easements and the shape of the lot, the applicant requests a variance from the parking lot shading requirements.

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for the building. The neighboring Audi and Honda dealerships do not have the same physical limitations as the subject site. The project demonstrates that the parking lot shading requirement can be met for the remainder of the parking areas except for the portions encumbered by the PG&E easements.

The PTC and the ARB supported the variance request, citing the easements as the main constraint. The ARB added a condition of approval to add smaller trees where feasible to further add more shading for the parking lot along East Bayshore Road.

Setbacks
Due to the utility easement along East Bayshore Road, the proposed building has a large setback and the developer requests to deviate from the “build -to-line” setback, which encourages buildings be placed closer to the street. The proposed setback of 8 9 feet (with five- foot roof overhang) is consistent with the surrounding development and outside of the 80 -foot- wide easement. However, the existing Audi showroom is closer to the street at 18’-10”.

The CS zoning development standards require a 0-10-foot setback along the street and a “build- to-line” setback of 50% of the front setback and 33% of the street side setback. The build -to setback is typically found along commercial corridors such as El Camino Real. In the context of the project, this site is o ne of two properties zoned CS district surrounded by properties zoned ROLM and a non -residential PC. The proposed setback is inconsistent with the CS zoning front setback development standard (0’ to 10’), hence a DEE has been requested. While the proposed setback is inconsistent with the code, these setbacks are consistent with surrounding development, except for the Audi showroom, which is closer to the street. All other dealership proposals have been able to make the findings for approval of the Design En hancement Exception.

Both the PTC and the ARB supported the DEE request for the project.

Adjacency to the Baylands
Since the project is located within the Baylands, the following are policies from the master plan that affect the site:
• Be sure any future development is consistent with the Comprehensive Plan and continues to receive extensive design review utilizing the Site and Design Review Process and the Site Assessment and Design Guidelines Palo Alto Nature Preserve.

During the June 2022 ARB meeting, the ARB recommended that the applicant consider modifications and revisions so that the project would be consistent with the Design Guidelines.

The applicant responded by incorporating shades of green for the stucco elevations facing the Baylands and incre asing the wood paneling through the service drive. To further address any potential views from the Baylands to the site, the applicant proposes to plant twelve native trees in the Baylands adjacent to the 1730 Embarcadero Road and the neighboring office building.
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Both PTC and the ARB acknowledged that the project was consistent with the Site Assessment and Design guidelines noting that the project is low and horizontal and includes a variety of materials and colors that complement the Baylands.

Policy Implications
The proposed project is on balance consistent with the City’s Comprehensive Plan. With an approval of the Variance and the DEE, the project is consistent with the zoning code.

Timeline
With the adoption of the ROLUA, the project can commence con struction with the approval of a building permit. The entitlements would expire within two years unless construction has commenced.

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 November 25, 2022, which is 10 days in advance of the meet ing. Postcard mailing occurred on November 23, 2022, which is 12 in advance of the meeting.

Public Comments
A representative for 2465 East Bayshore Road communicat ed with city staff regarding the potential acoustic impacts associated with the project’s car wash facility. The project’s car wash facility will need to comply with the City’s noise regulations contained in PAMC Chapter 9.

Conditions of approval and a mitigation measure will ensure compliance with these regulations.

In addition, after consultat ion with the applicant and the neighbor, the applicant has agreed to install a quieter drying system that would meet the City’s noise regulations. The ROLUA includes a condition of approval to ensure the installation of this quieter system.

Resource Impact
While economic factors are not taken into consideration by advisory Boards and Commissions for discretionary projects; automobile dealerships often bring in important sales tax revenue to cities.

Environmental Review
The subject project has been assesse d in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The project site was the subject of a prior application that was covered by 1700-1730 Embarcadero Road Auto Dealership Project Initial Study - 9 Packet Pg. 236

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Mitigated Negative Declaration (IS -MND) (State Clearinghouse #2018072009) adopted in May 2019.1

In accordance with Section 15164 of the CEQA Guidelines, a lead agency (Palo Alto) must prepare an addendum to a previously certified EIR or adopted negative declaration if some changes or additions are necessary but none of the conditions described in Section 15162 calling for preparation of a subsequent EIR or negative declaration have occur red. Under Section 15162(a), where an EIR or negative declaration has been certified for a project, no subsequent EIR or negative declaration shall be prepared for the project unless the lead agency determines, on the basis of substantial evidence in light of the whole record, that there are substantial changes in the project or circumstances or substantially important new information that will cause the project to have significant new impacts or substantially increase previously identified significant impacts.

The addendum for the proposed project was prepared in accordance with relevant provisions of CEQA and the CEQA Guidelines. It describes the proposed revisions to the project and compares the revised project’s impacts to those identified in the 1700-1730 Embarcadero Road Auto Dealership Project IS -MND. The analysis demonstrates that the revised project does not require the preparation of a subsequent or supplemental IS -MND. Most mitigation measures required of the 2019 project are required for the current project.

Attachments:

Attachment9.a: Attachment A: Location Map (PDF)
Attachment9.b: Attachment B: Draft Record of Land Use Action (DOCX) Attachment9.c: Attachment C: Zoning Comparison Table (DOCX) Attachment9.d: Attachment D: Prior Hearing Actions (DOCX) Attachment9.e: Attachment E: Applicant's Response Letter (PDF) Attachment9.f: Attachment F: Project Plans and CEQA (DOCX)

1 1700-1730 Embarcadero Road Auto Dealership Project IS-MND: https://www.cityofpaloalto.org/News- Articles/Planning-and-Development-Services/1700-1730-Embarcadero-Road-18PLN-0018619PLN-00291 9 Packet Pg. 237

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ACTION NO. 2022-____

RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 1700 EMBARCADERO ROAD: SITE AND DESIGN REVIEW, DESIGN ENHANCEMENT EXCEPTION, VARIANCE (21PLN-00191)

On ____________, 2022, the City Council of the City of Palo Alto approved a Site and Design Review and a Design Enhancement Exception to allow the demolition of an existing 15,207 square foot vacant restaurant building and the construction of a two -Story 31,195 square foot Merc edes Benz automobile dealership. I n approving the application, the Council make the following findings, determination, and declarations:

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

A. Eric Iverson on behalf of Swickard Auto Group, Inc, property owner, has requested the City’s approval of a development project that includes Site and Design Review and Design Enhancement Exception to allow for the demolition of existing st ructures and the construction of a two-story automobile dealership (“The Project”).

B. The project site includes a single parcel (APN 008 -03-084) of 2.54 acres in size. The site is currently developed with an existing single -story 15,207 square-foot vacant restaurant. The site contains and is accessible to existing utilities. The site includes an 80 -foot utility easement along East Bayshore Road. The site is designated on the Comprehensive Plan land use map as Service Commercial and is located within the Service Commercial (CS) zoning district with Automobile Dealership (AD) and Site and Design (D) combining districts.

The project includes demolition of the existing on-site structure and construction of a new two -story automobile dealership with service facilities, including an attached automated car wash.

C. The Planning and Transportation Commission (Commission) reviewed and recommended approval of the Project on October 26, 2022. The Commission’s recommendations are contained in CMR#14824 and the attachments to it.

The Architectural Review Board (ARB) revie wed and recommended approval of the Project on November 3, 2022.

D. On December 5, 2022, the City Council held a duly noticed public hearing, at which evidence was presented and 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. The City , as the lead agency for the Project , has determined that the project is subject to environmental review under provisions of the California

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Environmental Quality Act (CEQA) under Guideline section 15070, Decision to Prepare a Negative or Mitigated Negative Declaration. An Initial Study/Mitigated Negative Declaration was prepared in January 2019 for a project (18PLN -0189) and identified potentially significant impacts with the implementation of the project. Those impacts can be reduced to a level of less than significant with the incorporation of mitigation measures. On the basis of the whole record before it, there is no substantial evidence tha t the project will have a significant effect on the environment and that the mitigated negative declaration reflects the lead agency’s independent judgment and analysis. The City of Palo Alto Planning and Development Services Department is the custodian of these documents. The Negative Declaration was made available for public review beginning March 15, 2019 through April 22, 2019. The City Council adopted the Mitigated Negative Declaration on June 24, 2022, incorporating the Mitigation and Monitoring Reporting Program.

It was determined that the current project (21PLN-00191) does not present the circumstances pursuant to CEQA Guidelines 15162 to warrant the completion of a subsequent Mitigated Negative Declaration or an Environmental Impact Report, and therefore, an Addendum to the previously adopted Mitigated Negative Declaration suffices. Pursuant to CEQA Guidelines 15164 the addendum need not be circulated. H owever, the addendum shall be considered with the adopted Mitigated Negative Declaration.

The City Council hereby approves the Addendum to the Mitigated Negative Declaration and incorporates the Mitigation and Monitoring Report attached as Exhibit 1 into the Record of Land Use.

SECTION 3. Site and Design Review objectives.

The design and architecture of the proposed improvements, as conditioned, comply with the Site and Design Objectives as required in Chapter 18.30.060(G) of the PAMC.

A. Objective (a): To ensure construction and operation of the use in a manner that will be orderly, harmonious, and compatible with existing or potential uses of adjoining or nearby sites.

The project includes sufficient façade articulation and material changes along Embarcadero Road and East Bayshore Road. A variety of glass, metal, and stucco materials with muted and darker colors will make the building complement the surrounding. As conditioned, the project will include a logistics plan to coordinate construction activity and limit disruptions to neighboring properties. Currently, two other automobile dealerships operate in the area. The project is designed to have necessary deliveries and parking occur onsite so that no spillover of activity to the streets or neighboring properties is anticipated. As conditioned, the lighting of the project will not spill over to adjoining areas.

B. Objective (b): To ensure the desirability of investment, or the conduct of business, research, or educational activities, or other authorized occupations in the same or adjacent areas.

The project proposes a business that is allowed in the zoning district and is an established business type in the area. The design of the project complements the other surrounding buildings and does not detract from the use of the Baylands recreational area. A component of the project include s the construction of a bicycle path that would provide a safe connection between the existing bicycle lanes and the Bay Trail.

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C. Objective (c): To ensure that sound principles of environmental design and ecological balance shall be observed.

The project is consistent with the Baylands design guidelines. Lighting is designed and conditioned to not shine onto the adjacent properties. Windows are designed to avoid bird -strikes. The project will implement green building measures as required by the Palo Alto Municipal Code. The existing building will be deconstructed to the highest level feasible to recycle as many of the materials as possible. The proposed dealership maintains a low profile and clean lines so as not to impose the surrounding building and area. the proposed building has a full-height landscaped wall feature that wraps around the southwest corner of the building and full-height window panels to let natural light in to further promote sound principles of environmental design and ecological bala nce. It utilizes reclaimed wood siding to minimize the use of natural resources.

D. Objective (d): To ensure that the use will be in accord with the Palo Alto Comprehensive Plan.

The project is consistent with the following Comprehensive Plan Goals and Policies:

Service Commercial: Facilities providing citywide and regional services and relying on customers arriving by car. These uses do not necessarily benefit from being in high-volume pedestrian areas such as shopping centers or Downtown. Ty pical uses include auto services and dealerships, motels, lumberyards, appliance stores, and restaurants, including fast service types. In almost all cases, these uses require good automobile and service access so that customers can safely load and unload without impeding traffic. In some locations, residential and mixed-use projects may be appropriate in this land use category. Examples of Service Commercial areas include San Antonio Road, El Camino Real , and Embarcadero Road northeast of the Bayshore Freeway. Non -residential FARs will range up to 0.4.

Consistent with the Comprehensive Plan’s encouragement of housing near transit centers, higher- density multi-family housing may be allowed in specific locations.

Policy L-1.3. Infill development in the urban service area should be compatible with its surroundings and the overall scale and character of the city to ensure a compact, efficient development pattern.

Policy L-5.1. Foster compact Employment Districts developed in a way that facilitates transit, pedestrian and bicycle travel. Provide mixed uses to reduce the number of auto trips.

Policy L-5.2. Provide landscaping, trees, sidewalks, pedestrian path , and connections to the citywide bikeway system within Employment Distric ts. Pursue opportunities to include sidewalks, paths, low water use landscaping, recycled water , and trees, and remove grass turf in renovation and expansion projects.

Policy L -5.3. Design paths and sidewalks to be attractive and comfortable , and consisten t with the character of the area where they are located.

Policy L -5.4. Maintain the East Bayshore and San Antonio Road/Bayshore Corridor areas as diverse business and light industrial districts.

Policy L -6.1. Promote high -quality design and site planning t hat is compatible with surrounding development and public spaces.

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Policy L-6.3. Encourage bird-friendly design.

Policy L-6.6. Design buildings to complement streets and public spaces; to promote personal safety, public health, and well-being; and to enhance a sense of community safety.

Policy T-1.17. Require new office, commercial and multi -family residential developments to provide improvements that improve bicycle and pedestrian connectivity as called for in the 2012 Palo Alto Bicycle + Pedestrian Transportation Plan.

SECTION 4. Architectural Review Findings.

1. The design is consistent with applicable provisions of the Palo Alto Comprehensive Plan, Zoning Code, coordinated area plans (including compatibility requirements), and any relevant design guides.

This finding can be made in the affirmative because the project is consistent with the following Comprehensive Plan goals and policies:

Comprehensive Plan Goal/Policy Consistency
Service Commercial: Facilities providing
citywide and regional services and relying on
customers arriving by car. These uses do not
necessarily benefit from being in high volume
pedestrian areas such as shopping centers or
Downtown. Typical uses include auto services
and dealerships, motels, lumberyards,
appliance stores and restaurants, including
fast service types. In almost all case s, these
uses require good automobile and service
access so that customers can safely load and
unload without impeding traffic. In some
locations, residential and mixed -use projects
may be appropriate in this land use category.

Examples of Service Commercial areas include
San Antonio Road, El Camino Real and
Embarcadero Road northeast of the Bayshore
Freeway. Non-residential FARs will range up to

0.4. Consistent with the Comprehensive Plan’s
encouragement of housing near transit
centers, higher density mult i-family housing
may be allowed in specific locations.

The project proposes a new Mercedes Benz
automobile dealership. The project is
consistent with the uses described in the
Service Commercial land use designation.

Policy L -1.3: Infill development in the urban
service area should be compatible with its
surroundings and the overall scale and
character of the city to ensure a compact,
efficient development pattern.

The project is on land that already has
development and is consist ent with the
surrounding development pattern, including
larger buildings and larger street setbacks.

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Comprehensive Plan Goal/Policy Consistency

Policy L -5.2 Provide landscaping, trees,
sidewalks, pedestrian path and connections to
the citywide bikeway system within
Employment Districts. Pursue opportunities to
include sidewalks, paths, low water use
landscaping, recycled water and trees and
remove grass turf in renovation and expansion
projects.

A bicycle path will be constructed along East
Bayshore Road and Embarcadero Road.

Consistent with the C ity’s Bicycle and
Pedestrian Transportation Plan, the existing
bicycle lanes on Geng Road connect to the Bay
Trail. The proposed bicycle path would
provide a safe connection where one does not
exist currently.

Policy L-5.3. Design paths and sidewalks to be
attractive and comfortable and consistent
with the character of the area where they are
located.

The bicycle path will be designed to fit with
the character of the surrounding.

Policy L -5.4. Maintain the East Bayshore and
San Antonio Road/Bayshore Corridor areas as
diverse business and light industrial districts.

The former restaurant will be demolished,
and, in its place, a new automobile dealership
will operate, which will complement the
diverse businesses within the district.

Policy L-6.1. Promote high-quality design and
site planning that is compatible with
surrounding development and public spaces.

The project uses a variety of materials such as
stucco, metal and glass. These materials use
muted and darker colors in a way that is
consistent with the surrounding uses and the
Baylands Design Guidelines. The 80 -foot
utility easement along East Bayshore limits
the site in design and landscaping, however,
these materials complement a design that
includes variegated facades. The project’s
design provides the appropriate transitions
between the site and adjacent buildings. As
conditioned, the project will have the
appropriate transition to the Baylands.

Policy L-6.3. Encourage bird-friendly design.

The project includes bird-safe glazing for
windows.

Policy L-6.6. Design buildings to complement
streets and public spaces; to promote
personal safety, public health and wellbeing;
and to enhance a sense of community safety.

Frontages for the project include East
Bayshore Road and Embarcadero Road . Both
frontages include building facades that
provide interest using materials, colors and
elevations that include visual relief.

Policy T-1.17. Require new office, commercial
and multi-family residential developments to
As proposed, the project will implement a
bicycle path along the street frontages. The

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Comprehensive Plan Goal/Policy Consistency
provide improvements that impro ve bicycle
and pedestrian connectivity as called for in the
2012 Palo Alto Bicycle + Pedestrian
Transportation Plan.
proposed bicycle path would provide a safe
connection where one does not exist
currently. This would connect with the overall
city bicycle system and the greater Baylands
bicycle network.

The use complements the existing automobile dealerships along Embarcadero Road and is a permitted use within the land use district. The project includes a bicycle path along East Bayshore Road and Embarcadero Road that would provide a connection between the existing bicycle lanes and the Bay Trail system. The project includes a typical automobile dealership design wi th its inventory and customer parking surrounding the dealership building. The project proposes to deviate from the “build- to-line” setback requirement for East Bayshore Road and Embarcadero Road and the tree shade canopy requirements for parking facilities through the Design Enhancement Exception and Variance process.

2. The project has a unified and coherent design, that:
a. creates an internal sense of order and desirable environment for occupants, visitors, and the general community,
b. preserves, respec ts and integrates existing natural features that contribute positively to the site and the historic character including historic resources of the area when relevant, c. is consistent with the context-based design criteria of the applicable zone district, d. provides harmonious transitions in scale, mass and character to adjacent land uses and land use designations,
e. enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas.

This finding can be made in the affir mative. The project includes two driveways (one from East Bayshore Road and one from Embarcadero Road). Vehicular access is provided around the perimeter of the site, allowing for trash pick-up, deliveries, and general access around the property. The driveway in front of the showroom creates a better overall circulation pattern because instead of vehicles being forced onto the roadway, vehicles being serviced or displayed can be moved onsite without ever leaving the site. The design of the buildings convey they are automobile dealerships and do not appear to portray a different type of use. The entries to the sites are distinctive and attractive with landscaping that is appropriate to the Baylands as well as consistent with the design of the buildings. Whil e the street trees along East Bayshore Road are being removed for the bicycle path, the bicycle path provides a separated connection from the street to other areas within the City’s bicycle network. Additional trees will be planted to replace those removed. While the rear of the site is not abutting the Baylands, the applicant proposes 12 native trees in the Baylands along the boundary of the adjacent parcels to enhance visual screening. The site’s large setbacks are consistent with the surrounding developm ent pattern and these setbacks help with the streetscape perception of the massing of the buildings.

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The project is consistent with the following context-based design criteria:

1. Pedestrian and Bicycle Environment
The design of new projects shall promote pedestrian walkability, a bicycle friendly environment, and connectivity through design elements
The project will provide a new bicycle path along the street frontages. This will include a rest area for cyclists with benches. The bicycle path will separate the bicyclists from the street lanes for added safety and reduction in conflict points.

2. Street Building Facades
Street facades shall be designed to provide a strong relationship with the sidewalk and the street (s), to create an environment that supports and encourages pedestrian activity through design elements
A request of the project is to have an exception from the “build -to-line” setback along Embarcadero and East Bayshore. Both frontages are impacted by an 80 -foot utility ea sement parallel with East Bayshore that prohibits any building placement or structure/vegetation over 15 feet within the easement area. The area is categorized by large street setbacks. The proposed project’s setbacks are consistent with the surrounding. T he design of the building including a façade with visual interest and use of a variety of materials with dark and muted colors.

A bicycle path will be constructed along East Bayshore and Embarcadero Road. Consistent with the City’s Bicycle and Pedestrian Transportation Plan, the existing bicycle lanes on Geng Road connect to the Bay Trail. The proposed bicycle path would provide a safe connection where one does not exist currently. In front of the project will include a rest area for cyclists with benches.

3. Massing and Setbacks
Buildings shall be designed to minimize massing and conform to proper setbacks The project meets the required setbacks or seeks relief from the setbacks to comply with easement requirements and to be consistent with the surrounding properties. Relief is sought for the “build- to-line” setback along Embarcadero Road and given the opportunities and constraints of the site, adherence to the requirement does not create a better project layout. Additionally, the project includes varied materials such as metal, stucco, glass with contrasting colors providing visual interest. The two -story building is horizontally oriented consistent with the Baylands design guidelines.

4. Low Density Residential Transitions
Where new projects are built abutting existing lower scale residential development, care shall be taken to respect the scale and privacy of neighboring properties The project is not adjacent to any residential areas.

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5. Project Open Space
Private and public open space shall be provided so that it is usable for the residents and visitors of the site
The project includes an outdoor area on the ground floor facing East Bayshore Road as well as in front of the building along Embarcadero Road. In addition, the project provides a new bicycle path along the streets and a rest area with benches.

6. Parking Design
Parking shall be accommodated but shall not be allowed to overwhelm the character of the project or detract from the pedestrian environment
The project includes a typical design for automobile dealerships with its inventory and customer parking surrounding the dealership building. The parking is mostly arranged in tandem configuration.

7. Large Multi-Acre Sites
Large sites (over one acre) shall be designed so that street, block, and building patterns are consistent with those of the surrounding neighborhood
The proposed setbacks for the project are consistent with other large sites within the vicinity. The setbacks for the surrounding buildings are large and the buildings are spread out over the site.

8. Sustainability and Green Building Design
Project design and materials to achieve sustainability and green building design should be incorporated into the project
The project will be consistent with the City’s Green Building Ordinance and be consistent with Cal Green Tier 2.

3. The design is of high aesthetic quality, using high quality, integrated materials and appropriate construction techniques, and incorporating textures, colors, and other details that are compatible with and enhance the surrounding area.

The project includes a single building using muted and complementary colors in conjunction with the execution of the mixture of metal, stucco and glass applied to a façade with variegated elevations that enhance the building and complements the surrounding.

4. The design is functional, allowing for ease and safety of pedestrian and bicycle traffic a nd providing for elements that support the building’s necessary operations (e.g. convenient vehicle access to property and utilities, appropriate arrangement and amount of open space and integrated signage, if applicable, etc.).

With an automobile dealer ship, it is expected that vehicles will be entering and exiting the site providing potential conflicts with pedestrians and cyclists. The site is adjacent to the Baylands which is a large and popular recreational area. The project includes the construction of a new bicycle path along

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East Bayshore Road and Embarcadero Road. The bicycle path will separate pedestrians and cyclists from the street adding a level of safety and improving sight awareness for users of potential conflict areas such as the driveways. Onsite circulation is provided along the perimeter of the site and includes two loading spaces. Landscaping is provided along the perimeter of the site as well as along the buildings. The location of the 80 -foot utility easement limits the amount and the type of landscaping that can be provided along East Bayshore Road and affects a small portion of Embarcadero Road frontage at the intersection where the electric transmission tower is located.

5. The landscape design complements and enhances the building design and its surroundings, is appropriate to the site’s functions, and utilizes to the extent practical, regional indigenous drought resistant plant material capable of providing desirable habita t that can be appropriately maintained.

Landscaping is provided along the perimeter of the site as well as along the buildings. The landscape palette uses drought tolerant and regional species. The location of the 80 -foot utility easement limits the amount and the type of landscaping that can be provided along East Bayshore Road and affects a small portion of Embarcadero Road at the intersection where the electric transmission tower is located.

Vegetation can be no taller than 15 -feet within these areas. The landscaping palette embraces the Baylands and many of the plants were chose because they were on the Santa Clara Valley Water District approved plant list, bay -friendly rated plant list and other plants from the Santa Clara Valley Urban Runoff Pollution Prevention Program. Specifically, the plants that directly interface with the Baylands are only native species and are complementary of the Baylands, including Oak, Buckeye, Blue Elderberry, California Sagebrush and Toyon.

6. The project incorporat es design principles that achieve sustainability in areas related to energy efficiency, water conservation, building materials, landscaping, and site planning.

The project is consistent with the City’s Green Building ordinance and will comply with Cal Gre en Tier 2 requirements. Some examples include:

• Electric vehicle parking
• Cool roof
• Water reduction
• Recycled content

SECTION 5. Design Enhancement Exception Findings

1. There are exceptional or extraordinary circumstances or conditions applicable to the property or site improvements involved that do not apply generally to property in the same zone district.

The applicant requests a Design Enhancement Exception from the ‘build -to-setback’ for buildings on site along East Bayshore Road and Embarcadero Road because of the location of the easements.

The subject property includes an 80 -foot-wide utility easement with development constraints below

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and above ground along East Bayshore Road. The purpose of the easement is to allow for the conveyance of high voltage electric power and stormwater for the region and for the City. Pacific Gas & Electric holds rights to the easement as well as the City. An electric transmission tower is located near the corner of the property. This easement prec ludes the placement of any building and any structure height to 15 feet.

East Bayshore Road
Adhering to the “build-to-line” setback requirements is not possible for East Bayshore Road.

Embarcadero Road
Based on the “build -to-line” requirement along Emba rcadero Road, the project would need at least 126 feet of the building to be set near the property line. The site has an approximate 252-foot frontage along Embarcadero Road and therefore would require at least 126 lineal feet of the building to be placed between zero and 10 feet of the property line. The utility easement along East Bayshore causes the building edge to be located approximately 65 feet from the corner of the property at Embarcadero Road and East Bayshore Road because of the shape of the prop erty. The remaining distance between the easement edge and the north property line is 189 feet and that leaves enough distance to meet the requirement.

As mentioned previously, it is expected that the primary entrance for customers will be from Embarcadero Road. A driveway cannot be located too close to the intersection and therefore the proposed location is the farthest from the intersection and a safe distance from the existing adjacent Audi driveway. The proposed driveway location creates efficiencies for the site because the driveway entry allows for efficient circulation for service trucks such as for recycling and waste pick up. Some of the required parking for the project is located within the utility easement along East Bayshore Road.

The driveway in front of the showroom creates a better overall circulation pattern because instead of vehicles being forced onto the roadway, vehicles being serviced or displayed can be moved onsite without ever leaving the site.

2. The granting of the application will enhance the appearance of the site or structure, or improve the neighborhood character of the project and preserve an existing or proposed architectural style, in a manner which would not otherwise be accomplished throu gh strict application of the minimum requirements of this title (Zoning) and the architectural review findings set forth in Section 18.76.020(d).

The easement s preclude any building to be placed within the easement area. Additionally, no structures such as light fixtures 15 feet can be placed within the easement area. In recent years, Pacific Gas & Electric due to experiences with wildfires has become more restrictive on the placement of vegetation near their transmission facilities, requiring trees to be shorter than 15 feet.

The building is designed with visually interesting facades and materials to complement other development within the area. The project proposes pl antings of trees were feasible and appropriate including around the perimeter of the site.

3. The exception is related to a minor architectural feature or site improvement that will not be detrimental or injurious to property or improvements in the vi cinity and will not be

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detrimental to the public health, safety, general welfare or convenience.

The surrounding development includes large street setbacks, so the exception will not create consistency or compatible issues with the neighboring properties. Trees and other plantings will occur at the perimeter of the site and within the easement and bicycle path area where feasible.

SECTION 6. Variance Findings

1. Because of special circumstances applicable to the subject property, including (but not limited to) size, shape, topography, location, or surroundings, the strict application of the requirements and regulations prescribed in this title substantially deprives such property of privileges enjoyed by other property in the vicinity and in the same zoning district as the subject property. Special circumstances that are expressly excluded from consideration are:

A. The personal circumstances of the property owner, and B. Any changes in the size or shape of the subject property made by the property owner or his predecessors in interest while the property was subject to the same zoning designation.

The applicant requests a variance from PAMC 18.54 (Parking Lot Shading) requirements due to the shape of the subject property and the location of ea sements that preclude the planting of vegetation meeting the requirements of the zoning code. In the case of the subject property, the proposed use, which is allowed under the zoning code cannot be established because of the easements. This is also further compounded by the shape of the lot being a trapezoid, narrowing along Embarcadero Road causing an inefficient footprint for the building and function of the site as an automobile dealership.

The neighboring Audi and Honda dealerships do not have the same physical limitations as the subject site. The project demonstrates that the parking lot shading requirement can be met for the remainder of the parking areas except for the portions encumbered by easements.

The subject property is trapezoidal with its nar row dimension occurring along Embarcadero Road. A tall high-voltage transmission tower is located at the corner of the property at East Bayshore Road and Embarcadero Road. Easements on the subject property represent 26% of the property area. The subject property includes easements (overhead, surface and sub-surface) that precludes buildings from locating within the easement area. The easement has limitations on minor structures such as light fixtures and vegetation. In recent years, Pacific Gas & Electric d ue to experiences with wildfires has become more restrictive on vegetation near their transmission facilities, requiring trees to be shorter than 15 feet. In comparison, the other two automobile dealerships on the same block are standard shaped lots. The other two automobile dealership properties do not have the same impediments.

The project includes a parking lot within the easement area that includes both customer parking and inventory for sale as exterior display models. It is also not possible to plant trees that would support a large enough canopy to provide shading of the surface parking lot within the easement. Additionally, the project includes a bicycle path along East Bayshore Road and Embarcadero Road, which necessitates the elimination of existing mature street trees. The project proposes trees that will fit the requirements prescribed for the easement. The project also proposes to plant 12 trees off -site within the Baylands.

Automobile dealerships typically function either with a larger buildin g footprint with inventory stored

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within the building envelop or as a smaller building footprint with inventory stored uncovered in surface parking lots on site. This project is the latter, which by design is a smaller massed building that is more compatible with the Baylands and its surroundings. Prior automobile dealership proposals on this site have been the former, which have pushed compatibility thresholds. The project includes both customer and inventory parking in tandem configuration. Parking lot la ndscape standards are met for landscaping around the perimeter of the parking areas and the required landscape islands. Trees have been planted to the extent feasible and consistent with easement restrictions. Another constraint of the site is its trapezoi d shape. The narrow side of the property includes the easement, further compounding the ability to site a building, meet setbacks, avoid easements, meet stormwater regulations, and provide efficient circulation that would allow the automobile dealership to function.

The project includes a perimeter driveway to allow for circulation for fire department access around the buildings. The driveway also serves as important circulation component for the site’s operations, keeping vehicles off the street. The 80 -foot utility easement precludes the planting of trees with canopies significant enough to meet the City’s shading requirements. The addition of the bicycle path along East Bayshore and Embarcadero also takes out area that could be used to plant trees that would provide shading in these parking/driveway areas.

The project proposes 41% canopy shading for the entire site, where 50% is required. Without the limitations discussed, the project would be able to meet the requirement. The project demonstrates meeting the requirement on portions of the parking areas not encumbered by the easements.

There is recognition of t he importance of both the bicycle path and the City’s urban forest canopy.

However, given the limitations of the utility easement and the need for a bicycle connection in a location within the Baylands, the development of the bicycle path outweighs the tre e canopy requirement. The building’s design along East Bayshore Road is of high -quality making up for the loss of tree canopies. The project provides replacement trees onsite as well as off-site within the Baylands.

2. The granting of the application shall not affect substantial compliance with the regulations or constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and in the same zoning district as the subject property, and The project will comply with other development standards except for the ‘build-to-setbacks’ because of the easement restrictions and modifications to one of the two required on-site loading spaces. The granting of the variance would not be considered a grant of special privileges since other automobile dealerships can function without hardship from a physical constraint such as the subject site.

3. The granting of the application is consistent with the Palo Alto Comprehensive Plan and the purposes of this title (Zoning), and
The project is consistent with the Palo Alto Comprehensive Plan as discussed in Section 4 of this record of land use action and the use is consistent with the purposes of the zoning code.

4. The granting of the application will not be detrimental or injurious to property or improvements in the vicinity, will not be detrimental to the public health, safety, general welfare, or convenience.

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The granting of the variance would not negatively affect public health, safety, general welfare, or convenience or be detrimental to the property or improvements in the vicinity in that the project proposes to construct a multi-use pathway eliminating a gap in the city’s bicycle network and providing a safe connection to the Baylands. The project also provides additional trees and plantings offsite in the Baylands that would create shading and additional habitat for animals.

SECTION 7. Conditions of approval

PLANNING DIVISION

1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, "Mercedes Benz of Palo Alto,” stamped as received by the City on July 20, 2022 (revised August 10, 2022) on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval.

2. BUILDING PERMIT. Apply for a building permit and meet any and all conditions of the Planning, Fire, Public Works, and Building Departments.

3. BUILDING PERMIT PLAN SET. All Department conditions of approval for the project shall be printed on the plans submitted for building permit.

4. PROJECT MODIFICATIONS: All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant’s responsibility to highlight any proposed changes to the project and to bring it to the project planner’s attention.

5. PROJECT EXPIRATION. The project approval shall automatically expire after two years from the original date of approval, if within such two -year period, the proposed use of the site or the construction of buildings has not commenced pursuant to and in accordance with the provisions of the permit or approval. Application for a one-year extension of this entitlement may be made prior to the expiration. (PAMC 18.77.090(a)).

6. 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.

7. DEVELOPMENT IMPACT FEES: Development Impact Fees, currently esti mated in the amount of $1,368,305.87 shall be paid prior to the issuance of the related building permit.

8. IMPACT FEE 90-DAY PROTEST PERIOD. California Government Code Section 66020 provides that a

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project applicant who d esires to protest the fees, dedicati ons, reservations, or other exactions imposed on a development project must initiate the protest at the time the development project is approved or conditionally approved or within ninety (90) days after the date that fees, dedications, reservations or exa ctions are imposed on the Project. Additionally, procedural requirements for protesting these development fees, dedications, reservations and exactions are set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90 -

DAY PERIOD OR FOLLOW THE PROTEST PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION 66020, YOU WILL BE BARRED FROM CHALLENGING THE VALIDITY OR REASONABLENESS OF THE FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. If these requirements constitute fees, taxes, assessments, dedications, reservations, or other exactions as specified in Government Code Sections 66020(a) or 66021, this is to provide notification that, as of the date of this notice, the 90- day period has begun in which you may protest these requirements. T his matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be sought is governed by CCP Section 1094.6.

9. MITIGATION MONITORING AND REPORTING PROGRAM. The Mitigation Monitoring and Reporting Program (MMRP) associated with the project and attached here as Exhibit 1 is incorporated by reference and all mitigation measures shall be implemented as described in said document. Prior to requesting issuance of any related demolition and/or construct ion permits, the applicant shall meet with the Project Planner to review and ensure compliance with the MMRP, subject to the satisfaction of the Director of Planning and Development Services. a. The owner or designee shall complete an acoustical report satisfying Mitigation Measure N-1 to the satisfaction of the Director of Planning and Development Services or designee prior to issuance of certificate of occupancy. b. Staff shall ensure that the neighbor at 2465 East Bay shore Road has an opportunity to review the acoustical report.

10. FINAL INSPECTION: A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, landscaping and hard surface locations. Contact your Project Planner, Sheldon S. Ah Sing at [email protected] to schedule this inspection.

11. BIRDS. The owner or designee shall evaluate migratory patterns affecting the site prior to submittal of a building permit and if any trees are found to be recurring nesting sites, ensure inst allation of replacement nesting facilities with replacement mature trees.

12. LIGHTING. The owner or designee shall ensure that light does not spill over the property lines from the project. The owner or designee prior to building permit issuance provide information to the satisfaction of the City that light levels do not exceed cur rent lighting levels of surrounding properties. One strategy could be that lighting levels shall be reduced during the nighttime period to security levels (between 10pm and dawn or periods when the businesses are not in operation).

13. SIGNS. The owner or designee shall apply for approval of signs proposed for the site in accordance with PAMC 16.20.020. Based on the submitted set of plans, the northwest elevation of the building exceeds its allowance of sign area for wall signs. The owner or designee shall consider reducing the

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size of the signs to comply. Additional consideration shall be made to include protruding elements to the freestanding signs for the Mercedes Benz logo so that the sign is not flat.

14. AUDI IMPROVEMENTS. The owner or designee shall demons trate completeness of work on any outstanding improvements for the Audi Dealership (1730 Embarcadero) prior to Planning final inspection for the 1700 Embarcadero project.

15. CAR WASH EQUIPMENT: The owner or designee shall demonstrate installation of International Drying Corporation “Stealth Predator Ultra-Quiet Drying System” (30 Horsepower model) (65 dBA at 30 feet) to the satisfaction of the Planning Director or designee.

16. ARB AD HOC CONDITION: Prior to building permit issuance, the owner or designee shall demonstrate to the Architectural Review Board Ad Hoc the following:
a. Clarifying cross-sections along the multi-use path to confirm elevations; b. Showing more low -level plantings in between trees and consider other canopy trees where fe asible to increase shading, such as the addition of western redbuds to the landscape fingers along East Bayshore Road;
c. Confirming that trees can be planted adjacent to the multi-use path; d. Confirming that the building elevations along the west and northwest elevations include the continuation of the ribbed metal paneling and also confirming the green colors.

17. LOADING. No loading or unloading of vehicles shall occur within the City right -of-way adjacent to the property.

BUILDING DEPARTMENT

18. The owner or designee at building shall:
a. Demonstrate that electric vehicle parking counts comply with PAMC 16.14.430; b. Demonstrate that electric vehicle accessible parking complies with CBC 11B, similar to regular accessible parking;
c. Demonstrate accessible route from public sidewalk/bus stop to building entrance; and d. Contact the Building Department for building permit submittal requirements

PUBLIC WORKS ENGINEERING DEPARTMENT
PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS . Applicant shall be advised that all forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Forms-and- Permits

19. GRADING PERMIT. A Grading Permit is required per PAMC Chapter 16.28. The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. ADVISORY -- A grading permit only authorizes grading and storm drain improvements; therefore, the following note shall be included on each grading permit plan sheet: “THIS GRADING

PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.”

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20. GEOTECHNICAL ENGINEER STATEMENT . The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS BEEN REVIEWED AND

FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT.”

21. RETAINING WALLS. The grading plan shall clearly indicate all site retaining walls needed along the project to accommodate the fill. These walls shall be located completely onsite, and at a minimum five feet from the existing street trees to be protected.

22. STORM DRAIN EASEMENT. The developer shall relocate the existing 21-inch storm drain line, away from the proposed foundation, and a new 10-foot wide (minimum) storm drain easement shall be dedicated to the City.

23. FLOOD ZONE. This project is in a Federal Emergency Management Agency (FEMA) Special Flood Hazard Area and sha ll comply with the requirements in Palo Alto Municipal Code Chapter 16.52 and the California Residential Code Section 322 (CRC 322).

24. CONDITIONAL LETTER OF MAP REVISION (CLOMR-F). Evidence that this document has been executed shall be provided prior to building permit issuance.

25. OUTSIDE AGENCY APPROVAL . Developer shall provide documentation that shows approval from the owner(s) of any easements that are affected by the project, inc luding any easements that are to be abandoned.

26. STREETWORK PERMIT . The applicant shall obtain a Streetwork Permit from the Department of Public Works for all offsite and public improvements.

27. ENCROACHMENT PERMIT. Prior to any work in the public right -of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way.

28. LOGISTICS PLAN. A construction logistics plan shall be provided addressing all impacts to the public and including, at a minimum: work hours, noticing of affected businesses, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concre te pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map, which outlines truck routes available throughout the City of Palo Alto.

29. STORM WATER POLLUTION PREVENTION PLAN (SWPPP) . The proposed development will disturb more than one acre of land. Accordingly, the applicant will be required to comply with the State of California’s General Permit for Storm Water Discharges Associated with Construction Activity. This entails filing a Notice of Intent to Comply (NOI), paying a filing fee, and preparing and implementing a site-specific storm water pollution prevention plan (SWPPP) that addresses both const ruction- stage and post-construction BMP’s for storm water quality protection.

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30. STORMWATER POLLUTION PREVENTION . All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet.

31. C.3 THIRD-PARTY CERTIFICATION. Applicant shall provide certification from a qualified third-party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and PAMC Chapter 16.11. The third-party reviewer shall provide the following documents to Public Works prior to building permit approval:
a. Stamped and signed C.3 data form (September 2019 version) from SCVURPPP. https://scvurppp.org/wp-
content/uploads/2019/10/SCVURPPP_C3_Data_Form_September2019_fillable_final_9-24-

19.pdf
b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11.

32. C.3 STORMWATER AGREEMENT . The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit approval.

Note: Any revisions to the C.3 stormwater pollution prevention measures that are necessary to facilitate installation of sai d measures will be addressed in the agreement and the accompanying exhibits, executed by the City, and recorded with the County.

33. C.3 FINAL THIRD-PARTY CERTIFICATION PRIOR TO OCCUPANCY . Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans.

34. PAVEMENT RESTORATION . The applicant shall restore the pavement along the entire project frontage, curb-to-curb, by performing a 3.5” grind and overlay. The exact restoration limits will be determined by the Public Works Inspector or designee, once the resulting road condition is known following completion of heavy construction activities and utility lateral installations, at minimum the extent will be the project frontage.

35. IMPERVIOUS SURFACE AREA. The project will be creating or replacing 500 square feet or more of impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application . The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. To determine the impervious surface area that is being disturbed, provide the quantity on the site plan.

36. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE.
a. STORM DRAIN LOGO -- The applicant is required to paint “No Dumping/Flows to Matadero Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains ca n be obtained from Public Works

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Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329 -2598. Include the instruction to paint the logos on the construction grading and drainage plan.
b. RECORD DRAWINGS -- At the conclusion of the project applicant shall provide digital as- built/record drawings of all improvements constructed in the public right-of-way or easements in which the City owns an interest.

37. DEDICATION EASEMENT. The owner or designee shall record an easement for dedication as indicated on the project plans prior to issuance of building permits to the satisfaction of the Director of Public Works or designee.

PUBLIC ART

38. IN-LIEU FEE. If the owner or designee chooses to pay to the public art fund in–lieu of commissioning art on site, the funds must be received prior to the issuance of a building permit (See Condition #7).

TRANSPORTATION

39. EAST BAYSHORE ROAD / EMBARCADERO ROAD INTERSECTION. The existing pedestrian crossings are non-Americans with Disabilities Act (ADA) compliant at East Bayshore Road/ Embarcadero Road intersection. As part of the multi-use path construction, the owner or designee shall construct ADA compliant pedestrian crossings and ramps at the East Bayshore Road/ Embarcadero Road intersection. Pedestrian crossings and ramps shall meet the California Manual on Uniform Traffic Control Devices (CA MUTCD) requirements. The owner or designee shall submit the site plan for Office of Transportation approval before or during the building permit application.

40. MULTI-USE PATH. The owner or designee shall demonstrate that t he multi -use path width is a minimum of 10 feet in width along the property frontage.

41. BICYCLE RACKS. The owner or designee shall provide inverted-U bicycle racks instead of ‘wave’ style bicycle racks.

WATER QUALITY

42. POLYCHLORINATED BIPHENYLS (PCBs). Since the project triggers PCBs , sampling as identif ied on the “PCBs Planning Application Form,” then the project shall conduct representative sampling of PCBs concentration in accordance with the “Protocol for Evaluating Priority PCBs -Containing Materials before Building Demolition (2018).” The PCBs Applic ation Package and other resources are outlined at http://www.cityofpaloalto.org/pcbdemoprogram. a. If the representative sample results or records DO NOT indicate PCB concentrations ≥50 ppm in one or more “priority materials,” then the screening assessment is complete.

Applicant submits screening form and the supporting sampling documentation with the demolition permit application. No additional action is required. b. If the representative sample results or records DO indicate PCBs concentrations ≥50 ppm in one or more “priority materials,” then the screening assessment is complete, but the Applicant MUST also contact applicable State and Federal Agencies to meet further requirements.

Applicant submits screening form and the supporting sampling documentation with the demolition permit application and must contacts the State and Federal Agencies as indicated on Page 3 of the “PCBs Screening Assessment Form.”

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IMPORTANT: ADVANCED APPROVAL FROM THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY (USEPA) OR OTHER STATE AGENCIES MAY BE REQUIRED PRIOR TO BUILDING DEMOLITION.

IT IS RECOMMENEDED THAT APPLICANTS BEGIN THE PCBs ASSESSMENT WELL IN ADVANCE OF APPLYING FOR DEMOLITION PERMIT AS THE PROCESS CAN TAKE BETWEEN 1-3 MONTHS.

43. STORMWATER TREATMENT MEASURES. The following applies to the project:
a. All Bay Area Municipal Regional Stormwater Permit requirements shall be followed. b. Refer to the Santa Clara Valley Urban Runoff Pollution Prevention Program C.3 Handbook (download here: http://scvurppp-w2k.com/c3_handbook.shtml) for details. c. For all C.3 features, vendor specifications regarding installation and maintenance should be followed and provided to city staff. Copies must be submitted to Pam Boyl e Rodriguez at [email protected]. Add this bullet as a note to the building plans. d. Staff from Stormwater Program (Watershed Protection Division) may be present during installation of stormwater treatment measures. Contact Pam Boyle Rodriguez, Stormwater Program Manager, at (650) 329 -2421 before installation. Add this bullet as a note to building plans on Stormwater Treatment (C.3) Plan.

ZERO WASTE
Deconstruction and Construction Materials Management Requirements.

44. REQUIRED DECONSTRUCTION. In conformance with PAMC 5.24, deconstruction and source separation are required for all residential and commercial projects where structures are being completely removed, demolition is no longer allowed. Deconstruction takes longer than traditional demolition, it is important to plan ahead.

45. SALVAGE SURVEY FOR REUSE. A Salvage Survey is required for deconstruction permit applications.

The survey shall be conducted by a City approved reuse vendor. The survey submittal shall include an itemized list of materials that are salvageable for reuse from the project. The applicant shall source separate and deliver materials for reuse. Certification is required indicating that all materials identified in the survey are properly salvaged.

46. SOURCE SEPARATION FOR RECYCLING. The applicant shall source separate deconstruction materials into specific categories for recycling. Additional staging areas for source separated materials will need to be considered. All materials shall be delivered to one of the City approved materials recovery facilities listed in Green Halo, all records shall be uploaded to www.greenhalosystems.com.

For more information, refer to www.cityofpaloalto.org/deconstruction.

PUBLIC WORKS URBAN FORESTRY

47. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to Tree Technical Manual, Section 2.20 -2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25.

48. GENERAL. The following general tree preservation measures apply to all trees to be retained: No

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storage of material, topsoil, vehicles, or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated, and maintained as necessary to ensure survival.

49. EXCAVATION RESTRICTI ONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging , or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor.

50. TREE PROTECTION VERIFICATION. Prior to any site work verification from the contractor that the required protective fencing is in place shall be submitted to the Urban Forestry Section. The fencing shall contain required warning sign and remain in place until final inspection of the project.

SECTION 8. Term of Approval.

1. Site and Design Approval. In the event actual construction of the project is not commenced within two years 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 18.82.080.

2. Design Enhancement Exceptions. The time limits for any Design Enhancement Exceptions shall be the same as the time limits for the accompanying design review approval.

3. Variance. The time limits for any Variance shall be the same as the time limits for the accompanying design review approval.

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:

_________________________ ____________________________ City Clerk Director of Planning and Development Services

APPROVED AS TO FORM:

___________________________

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Assistant City Attorney

PLANS AND DRAWINGS REFERENCED:

1. Those plans prepared by SPARC + titled “Mercedes Benz of Palo Alto”, consisting of 87 pages, dated July 15, 2022, and received July 21, 2022 (revised August 10, 2022).

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Exhibit 1 Mitigation Monitoring and Reporting Program

The mitigation monitoring table lists those mitigation measures that would be included as conditions of approval for the project. To ensure that the mitigation measures are properly implemented, a monitoring program has been devised which identifies the timing and responsibility for monitoring each measure.

Environmental
Impact Mitigation Measure Responsible for
Implementation
Timing of
Compliance
Oversight of
Implementation

BIOLOGICAL RESOURCES
BIO-2: Nesting Bird
Surveys and
Avoidance
Construction of the project, shall be
prohibited during the general avian nesting
season (February 1 – August 31), if feasible.

If nesting season avoidance is not feasible,
the applicant shall retain a qualified
biologist, as approved by the City of Palo
Alto, to conduct a preconstruction nesting
bird survey of adjacent street trees to
determine the presence/absence, location,
and activity status of any active nests. The
extent of the survey buffer area
surrounding the site shall be established by
the qualified biologist to ensure that direct
and indirect effects to nesting birds are
avoided. To avoid the destruction of active
nests and to protect the reproductive
success of birds protected by the MBTA and
CFGC, nesting bird surveys shall be
performed not more than 14 days prior to
scheduled vegetation clearance and
structure demolition. In the event that
active nests are discovered, a suitable
buffer (typically a minimum buffer of 50
feet for passerines and a minimum buffer
of 250 feet for raptors) shall be established
around such active nests and no
construction shall be allowed within the
buffer areas until a qualified biologist has
determined that the nest is no longer active
(i.e., the nestlings have fledged and are no
longer reliant on the nest). No ground
disturbing activities shall occur within this
buffer until the qualified biologist has
confirmed that breeding/nesting is
completed and the young have fledged the
nest. Nesting bird surveys are not required
for construction activities occurring
between August 31 and February 1.

Applicant or
designee/Construction
contractor
Prior to and
during
construction
CPA Planning
Department

CULTURAL RESOURCES
CR-1: Resource
Recovery Procedures.

In the event that archaeological or
paleontological resources are unearthed
during project construction, all earth-
disturbing work in the vicinity of the find
shall be temporarily suspended or
redirected until an archaeologist or
paleontologist has evaluated the nature
and significance of the find. If the discovery
Applicant or
designee/Construction
contractor
During
construction
CPA Planning
Department

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Environmental
Impact Mitigation Measure Responsible for
Implementation
Timing of
Compliance
Oversight of
Implementation
proves to be significant under CEQA,
additional work such as preservation in
place, archaeological data recovery, and/or
paleontological salvage shall occur as
required by the archeologist or
paleontologist in coordination with City
staff and descendants and/or stakeholder
groups, as warranted. After the find has
been appropriately treated, depending on
the nature of the discovery, work in the
area may resume. A Native American
representative shall be retained to monitor
mitigation work associated with Native
American cultural material.

CR-2: Human
Remains Recovery
Procedures
If human remains are unearthed, State
Health and Safety Code Section 7050.5
requires that no further disturbance shall
occur until the County Coroner has made
the necessary findings as to the origin and
disposition pursuant to the Public
Resources Code Section 5097.98. If the
remains are determined to be of Native
American descent, the coroner has 24
hours to notify the Native American
Heritage Commission.

Applicant or
designee/Construction
contractor
During
construction
CPA Planning
Department
TCR-1: Unanticipated
Discovery of Tribal
Cultural Resources
In the event that cultural resources of
Native American origin are identified during
construction, all earth disturbing work
within the vicinity of the find must be
temporarily suspended or redirected until
an archaeologist has evaluated the nature
and significance of the find and an
appropriate Native American
representative, based on the nature of the
find, is consulted. If the City determines
that the resource is a tribal cultural
resource and thus significant under CEQA, a
mitigation plan shall be prepared and
implemented in accordance with state
guidelines and in consultation with Native
American groups. The plan would include
avoidance of the resource or, if avoidance
of the resource is infeasible, the plan would
outline the appropriate treatment of the
resource in coordination with the
archeologist and the appropriate Native
American tribal representative.

Applicant or
designee/Construction
contractor
During
construction
CPA Planning
Department

GEOLOGY AND SOILS
GEO-1: Geotechnical
Design
Considerations
The recommendations included in the 2015
Geotechnical Investigation conducted by
Romig Engineers, Inc. (Appendix C) related
to soil engineering shall be incorporated
into the proposed project grading and
building plans. The recommendations are
related to:

Applicant or designee Prior to
building
permit
CPA Planning
Department

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Environmental
Impact Mitigation Measure Responsible for
Implementation
Timing of
Compliance
Oversight of
Implementation
 Foundation design;
 Surface improvements;
 Slabs-on-grade;
 Retaining walls;
 Vehicle pavements; and,
 Earthwork.

NOISE
N-1 Car Wash Noise
Reduction
Prior to operation of the car wash, the
project applicant shall implement the
following noise reduction measures to
ensure car wash noise complies with PAMC
Chapter 9.10:

 Any measure or combination of
measures that would achieve
compliance, such as the following:
 Doors enclosing the car wash be
sealed at all times when dryers are
operating; or
 Housings or silencers shall be installed
on the dryers/blower fans; or
 Noise attenuation mats shall be
installed on the interior of the car
wash tunnel; or
 Dryers/blowers shall be installed as far
into the tunnel as feasible.

Applicant or designee Certificate of
Occupancy
CPA Planning
Department

TRIBAL CULTURAL RESOURCES
TCR-1: Unanticipated
Discovery of Tribal
Cultural Resources
In the event that cultural resources of
Native American origin are identified during
construction, all earth disturbing work
within the vicinity of the find must be
temporarily suspended or redirected until
an archaeologist has evaluated the nature
and significance of the find and an
appropriate Native American
representative, based on the nature of the
find, is consulted. If the City determines
that the resource is a tribal cultural
resource and thus significant under CEQA, a
mitigation plan shall be prepared and
implemented in accordance with state
guidelines and in consultation with Native
American groups. The plan would include
avoidance of the resource or, if avoidance
of the resource is infeasible, the plan would
outline the appropriate treatment of the
resource in coordination with the
archeologist and the appropriate Native
American tribal representative.

Applicant or designee
/ Construction
Contractor
During
Construction
CPA Planning
Department

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ATTACHMENT C

ZONING COMPARISON TABLE
1700 Embarcadero Road, 21PLN-00191

Table 1: COMPARISON WITH CHAPTER 18.16 (CS DISTRICT) and CHAPTER 18.30(F) (AD Combining District) Exclusively Non-residential Development Standards
Regulation Required Existing Proposed
Minimum Site Area, width and
depth
None

2.54 acres

2.54 acres

Minimum Front Yard

0-10 feet to create an
8-12 foot effective
sidewalk width (1), (2), (8)
37 feet 45’-6”
Rear Yard

None 154 feet 68’-8”
Interior Side Yard

None 52 feet 66’-8”
Street Side Yard None 87 feet 89’-3”
Min. yard for lot lines abutting
or opposite residential
districts or residential PC
districts
10 feet (2) Not applicable Not applicable
Build-to-lines

50% of frontage built
to setback on
Embarcadero Road
33% of side street built
to setback on Bayshore
Road (7)
Not applicable No Build-To proposed
Max. Site Coverage None

11% (12,207 sf) 33% (35,694 sf)
Max. Building Height 50 ft

33’-6” 26 feet to parapet
36 feet to sign element
Max. Floor Area Ratio (FAR) 0.4:1 (44,173 sf)

18.30(F)(a)(1)

0.2:1 Additional FAR
for Automobile
Dealership Showrooms
on the first floor. 0.6:1
(66,259 sf)

18.30(F)(a)(2)

Exclude service drives
(PAMC

18.30(F).050(a)(3)(b)

0.14.1 (15,207 sf) 1st floor: 25,099* sf
2nd floor: 5,715 sf
Trash enclosure: 381 sf

Showroom/Dealership
/Service: 0.29:1
(31,195 sf)*

*Includes 4,097 sf
showroom
**Excludes 4,499 sf
service drive

(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.

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Table 2: COMPARISON WITH CHAPTER 18.16 (CS DISTRICT) and CHAPTER 18.30(F) (AD Combining District) continued
Exclusively Non-residential Development Standards
Topic Requirement Proposed
Hours of Operation
(18.16.040 (b))
Businesses with activities any time between the hours
of 10:00 p.m. and 6:00 a.m. shall be required to obtain a conditional use permit. The director may apply
conditions of approval as are deemed necessary to
assure compatib ility with the nearby residentially
zoned property
Compliant
Outdoor Sales and
Storage (18.16.060 (h))
(3) In the CS district, outdoor sales and display of
merchandise, and outdoor eating areas operated
incidental to permitted eating and drinking services
shall be permitted subject to the following regulations:
(A) Outdoor sales and display shall not occupy a
total site area exceeding the gross building floor area on the site, except as authorized by a conditional use
permit.
(B) Areas used for outdoor sales and display of
motor vehicles, boats, campers, camp trailers, trailers, trailer coaches, house cars, or similar conveyances shall meet the minimum design standards applicable to off
street parking facilities with respect to paving, grading, drainage, access to public streets and alleys, safety and protective features, lighting, landscaping, and
screening.
(C) Exterior storage shall be prohibited, unless
screened by a solid wall or fence of between 5 and 8
feet in height.

Not Applicable because
the site is subject to the
AD combining district
Outdoor Sales and
Storage
(18.30(F).050(c)
(c) Outdoor Sales and Storage
Outdoor sales and display of automobiles and
merchandise shall be permitted subject to the following regulations:
(1) Two automobile display pads shall be permitted
in the required setback area, including landscaped
areas, adjacent to a public right -of-way. A single
automobile display pad shall be no higher than eight
feet, measured to the highest point of the automobile
on the display pad, and the surface of the display pad
area shall be no larger than 175 square feet.
(2) Areas for outdoor sales and display of motor
vehicles, other than automobile display pads, shall
meet the minimum design standards applicable to of f-
street parking facilities with respect to paving, grading, drainage, safety and protective features, lighting, and screening. Striping for parking stalls shall not be
required for auto display and storage areas.
(3) Exterior storage shall screened by a solid wall or
fence of between five and eight feet in height.

Compliant

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Recycling Storage
(18.16.060 (i))
All new development, including approved
modifications that add thirty percent or more floor area to existing uses, shall provide adequate and accessible interior areas or exterior enclosures for the storage of recyclable materials in appropriate containers. The
design, construction and accessibility of recycling areas and enclosures shall be subject to approval by the
architectural review board, in accordance with design
guidelines adopted by that board and approved by the
city council pursuant to Section 18.76.020.

Recycling is at the rear
portion of the site.

Employee Showers
(18.16.060 (j))
Retail Services requires one (1) shower for 25,000-
49,999 sf
Not applicable to
Automobile Dealerships
Office Use Restrictions
(18.16.050)
Total floor area of permitted office uses on a lot shall not exceed 25% of the lot area, provided a lot is
permitted between 2,500 and 5,000 sf of office use.

The maximum size may be increased with a CUP issued
by the Director.

Not applicable

18.16.080 Performance Standards . All development in the C S district shall comply with the performance 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 3: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) for Automobile Dealerships*
Type Required Existing Proposed
Vehicle Parking Outdoor vehicle display
3,078/500 = 6.16
spaces

Automobile Dealership
30,814/400 = 77.03
spaces

Total: 83 spaces
161 spaces

85 spaces
Bicycle Parking 1 per 10 employees
(100% short term)
None 4 spaces (40
employees)
Loading Space 2 loading spaces for
30,000 - 69,999 sf
None 2 spaces**
* On-site employee amenity space is exempted from the parking requirements ** Requires Director’s modification to required dimensions

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Table 4: CONFORMANCE WITH CHAPTER 18.54 (Parking Facility Design Standards) for Automobile Dealerships*
Regulation Required Proposed
Tree Canopy
and Sizes
Landscaping within surface parking areas shall include tree plantings designed to result in 50 percent shading of parking lot surface areas within 15 years.

Trees required to meet any section of this title shall be a minimum fifteen gallon size, and at lea st twenty-five percent (25%) shall be twenty -four-inch box or larger. Fifty percent (50%) of shrubs shall be a minimum of five -gallon size. Provided, in the Site and Design Review (D) combining district, the minimum plant size requirements set forth in this section may be decreased, as set forth in Chapter 18.30(G).
22,456 SF
canopy area
/
54,899 SF
drivable
area
41%
Perimeter
Landscaping
Each unenclosed parking facility shall provide a perimeter landscaped strip at least five feet wide between and adjacent to a line defining the exterior boundary of the parking area and the nearest adjacent property line, not separated by a building.

Complies
Interior
Landscaping –
Amount
Required
Interior landscaping is required within the parking facility between the perimeter landscaped area and the edge of pavement adjacent to any building on the site. Each unenclosed parking facility shall provide a minimum of interior landscaping.

Size of parking facility: >30,000 = min. 10% landscaping Parking facility = 54,899 SF = min 5,473 SF landscaping Complies
22,332 SF

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Attachment D: Actions from prior Hearings
City Council:
20APL-00002, June 22, 2020 Appeal
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=77228 Upheld approval decision for 19PLN-00291
18PLN-00186, June 24, 2019:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=72062 Approval of project – Return to ARB for certain items (see 19PLN-00291) 15PLN-00394, June 6, 2016:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52594 Was reviewed by ARB six times in 2015/2016; Reviewed by PTC on April 27, 2016; then referred back to ARB by Council, at which time the applicant withdrew the application.

PTC:
21PLN-00191, October 26, 2022:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/planning-and-transportation-commission/2022/ptc-10.26.2022-1700-embarcadero- rd.pdf
https://www.youtube.com/watch?v=8dOA8_rtwWc&start=9084&width=420&height=315 Recommend approval to the City Council
18PLN-00186, March 27, 2019:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=70015 Recommend approval to City Council
ARB:
21PLN-00191, November 3, 2022 2nd Formal:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/architectural-review-board/2022/arb-11.03.2022-1700-embarcadero-rd.pdf https://www.youtube.com/watch?v=e8bh_gTAxCs
Recommend approval to the City Council
21PLN-00191, June 16, 2022 1st Formal:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/architectural-review-board/2022/arb-06.16.2022-1700-embarcadero-rd.pdf Continue to a date uncertain
19PLN-00291, March 5, 2020 2nd Formal:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=75555

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Recommend approval to Director
December 19, 2019 1st Formal:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=74447 Continue
18PLN-00186, June 6, 2019 3rd Formal:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=71733 Continue to date uncertain (no recommendation to City Council) April 4, 2019 2nd Formal:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=70111 Continue
September 20, 2018 1st Formal:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=66721 Continue

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July 15, 2022

City of Palo Alto
Department of Planning & Development Services
250 Hamilton Avenue
Palo Alto, CA 94301

Re: Proposed Mercedes-Benz Dealership
Project Description & Justification
1700 Embarcadero Road
Palo Alto, CA 94303

To Whom It May Concern:

Swickard Auto Group appreciates the feedback received at the June 16, 2022, ARB meeting.

In light of that feedback, we have had our architectural, engineering, and landscape professionals revise the proposal to address as many of the concerns as possible. The gist of the project remains the same; to de-construct the former Ming’s Restaurant building and construct a new predominantly one-story Mercedes -Benz dealership including a sales and service facility at 1700 Embarcadero Road. On site improvements are proposed t o include customer and employee parking spaces, inventory storage spaces, landscaping, a driveway connection to the adjacent existing Audi dealership, solar canopies, and a dumpster enclosure.

The small scale of the building proposed with the project is specifically designed to serve the surrounding community. An offsite multi-use path has been added to the proposal to replace an existing sidewalk and solar canopies have been added to the shade a portion of the parking lot between the existing Audi dealership and the proposed Mercedes-Benz building. Revised plans are to be found in the link sent to the City and hard copies of plans can be provided as requested.

A synopsis of the changes found on the revised plans is as follows:

A. A multi-use path is now proposed along Embarcadero and East Bayshore to replace an existing concrete sidewalk and trees. This multi-use path requires the dedication of 473 square feet of right -of-way as shown on Exhibit 2. I t also results in a loss of 11 trees which provide 794 square feet shade cover for the parking and vehicle storage areas.

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As previously discussed, we remain extremely concerned about the safety of such a multi-use path due to the conflicts with the vehicular driveways to the site and the adjacency of the path to vehicular traffic. Our preference and recommendation remains to preserve the existing sidewalk and street trees and for the City of Palo Alto to construct on-street bike lanes within the current right-of-way.

B. T
he proposed shade cover over the proposed asphalt has been increased to 23,535 square feet. The total asphalt area on the lot is 56,892 square fe et; however, 16,202 square feet of that area is within the PGE high voltage electricity easement where the planting of new canopy trees is prohibited. Subtracting the PGE e asement area leaves 40,690 square feet of asphalt with 23,535 square feet of cover which represents a 58% shade coverage level which exceeds the 50% level of the code. Additionally, 6,870 square feet of solar canopy is proposed between the Mercedes-Benz and Audi buildings.

Of that amount, an additional 3,824 square feet of parking lot coverage or a total of 67% of shade coverage over the non-PGE area. The PGE high voltage transmission easement meets the definition of a unique circumstance that negatively impacts the site and therefore meets the criteria of a variance. We are requ esting a variance to the permit the shade level as proposed on the resubmitted plans.

C. I
n addition to the additional trees provided to meet the shading requirements, two species of trees were changed to meet the requests of the ARB. The non-native Ginkgo Biloba trees were changed to native Western Redbud and the California Buckeye was changed to Valley Oak. Additionally, while the site does not border the Baylands, an additional planting area consisting of 12 trees and 14 evergreen shrubs is proposed on Baylands to screen the propos ed building as well as the existing neighboring office building.

D. T
he service drive roll -up doors have been removed and it is now an open -air service drive.

E. T
he reclaimed wood siding is now shown on both sides of the service drive. Additional elevations and perspective drawings are included to graphicly show such.

F. O
n the rear elevation of the building, the black corrugated panel system has been greatly reduced to minimally wrap the corner. The rear of the building is now painted 3 shades of grey-green to match typical native vegetation. The color of the roof top screens has been revised to a matching grey-green. A graphic rendering showing the existing and proposed view of the Mercedes-Benz building from the trail in the Baylands shows that

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even without the new landscaping, the view of the proposed building is 99% blocked by existing vegetation.

G. The customer parking spaces have been better identified on the plans and are labeled “CP”. There is customer parking on both sides of the service drive to accommodate both sales and service customers.

H. The bicycle rack has been revised to a type that allows the front and rear wheels to be locked to it as well as the frame of the bike.

I. Additional landscaping was included near the showroom glass to fu rther limit bird strikes. While a UV glass is proposed to limit such strikes, the actual manufacturer of the glass has not been determined at this time due to globa l supply issues. The glass manufacturer will be chosen based on availability closer to construction time. Adding vinyl dots to the glass was deemed unfeasible due to the nature of the use of the building as a vehicular showroom.

J. Three additional ideas from the ARB were evaluated but deemed not feasible to be part of this project. One idea was to move the building toward the existing Audi building.

Moving the building that direction would result in the loss of the landscaping along that side of the building and/or the loss of the so lar canopies. It would also reduce the size of the water quality sediment ponds located on that side of site. Those areas are not able to be reduced due to code requirements. A second idea was to reduce the vehicle storage along East Bayshore to relocate the bike path behind the existing landscaping. That layout would result in a si gnificant taking of property and create a project that is not feasible to be built. Approximately 20 to 25 vehicle spaces would be lost. Any loss in parking would jeopardize the loss of code required and/or manufacturer required onsite vehicle storage spaces. The third idea was to create a green roof over part or all of the building. While a green roof would help accomplish the goal of reducing the heat island effect, it also limits the o pportunity for future solar to be mounted on the roof. The building is being built with the ability to add rooftop solar in the future. With an unknown future of what climate change will bring, we believe having the option of solar on the roof is critical to limit consumption of fossil fuels on site. To limit the heat island effect, the building will have a white roof which has a surface temp of 80 degrees cooler than a black roof and additional landscaping was added to the lot.

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We believe the revised proposed project Site and Design further complies with the following objectives from 18.82.060 PAMC:
a. To ensure construction and operation of the use in a manner that will be orderly, harmonious, and compatible with existing or potential uses of adjoining or nearby sites.

The proposed Mercedes -Benz dealership will be consistent with the surrounding uses.

Professional offices are to the north and south of the project site. Medical offices are located across Bayshore to the west of the dealership. The local Audi and Honda dealership are located to the east of the proposed site. This proposed dealership will further extend the dealerships to the East, continuing and further comingli ng the automobile dealership uses in the area, providing an efficient area for the surrounding community.

b. To ensure the desirability of investment, or the conduct of business, research, or educational activities or other authorized occupations, in the same or adjacent areas.

The proposed Mercedes-Benz dealership will further the desirability of investment by replacing a dilapidated restaurant building with a modern , envir onmentally sensitive automobile dealership. This will provide further consistency with the surrounding uses as it will c ontinue the row of automobile dealerships to the east of the site while raising the bar for environmentally sensitive design. By developing such a facility, Swickard Auto Group hopes to further stimulate the area for future investment and redevelopment.
c. To ensure that sound principles of environmental design and ecological balance shall be observed.

The proposed Mercedes-Benz dealership utilizes sound principles of environmental design and ecological balance by designing a building that is harmonious to the natural environment and surrounding area. The existing building will be de -constructed to the highest level feasible to recycle as many of the materials as possible. The proposed dealership maintains a low profile and clean lines so as not to impose the surrounding building and area. The proposed building also uses natural earth tone colors and natural materials. In addition, the proposed building has a full height landscaped wall feature that wraps around the southwest corner of the building and full height window panels to let natural light in to further promote sound principles of environmental design and ecological balance . It utilizes reclaimed wood siding to minimize the use of natural resources. Solar canopies are proposed between the Mercedes-Benz building and the existing Audi building to minimize dependence on fossil fuels. The roof structure will be built to support additional solar panels.

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d. To ensure that the use will be in accord with the Palo Alto Comprehensive Plan.

The proposed Mercedes -Benz automobile dealership use is consistent with the Palo Alto Comprehensive Plan. The proposed development continues the automobile dealership uses to the East of the site and is consistent with the uses described in the Service Commercial land use designation. The project is on land that already has development and is consistent with the surrounding development pattern, including larger buildings and larger street setbacks.

S
incerely,
E
ric Iversen
Director of Real Estate and Facilities
Swickard Auto Group
541.301.2748

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

Environmental Document
An Addendum to the Mitigated Negative Declaration has been prepared for this project.

Directions to review Project plans and environmental documents online:

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “1700 Embarcadero Road” 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/1700- Embarcadero-21PLN-00191
Materials Boards:

Prior to the hearing, color and material boards will be available to view in the display case outside of City Hall, on the exterior elevator near the corner of Hamilton Ave. and Bryant St.

For closer examination, this same board will be brought to chambers during the ARB hearing.

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City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Staff and the Council Sustainability and Climate Action (S/CAP) Ad Hoc Committee Recommend That Council Review and Provide Feedback to Staff on the Draft 2023-2025 S/CAP Work Plan and Direction on Governance of the Work Plan THIS ITEM HAS BEEN CONTINUED TO A FUTURE MEETING From: City Manager
Lead Department: Utilities
Recommendation
Staff and the Council Sustainability and Climate Action Plan (S/CAP) Ad Hoc Committee recommend that Council:

1. Review and provide feedback to staff on the draft 2023-2025 S/CAP Work Plan (Attachments A and B)

2. Provide direction on governance of the 2023-2025 S/CAP Work Plan Executive Summary
On October 3, 2022 , the City Council accepted the Sustainability and Climate Action Plan (S/CAP) Goals and Key Actions (Staff Report 14606 1). That document lists the detailed action s needed to achieve the City’s 80x30 goal, 2 but does not provide guidance on task prioritization or implementation timeline. The 2023-2025 S/CAP Work Plan is meant to guide staff efforts on the S/CAP over the next three years by prioritizing and providing more detail on implementation of the Key Actions accepted by Council on October 3, 2022 . The Work Plan is contingent on completion of environmental review, which is underway and expected to come to Council for action in spring 2023.

The draft 2023-2025 S/CAP Work Plan is split between a Climate Action section, which focuses on work items that achieve the City’s 80x30 goal, and a Sustainability section, which focuses on improving the City’s environmental impact in ways that are not primarily focused on redu cing greenhouse gas emissions, but focus on critically important co-benefits that contribute to overall climate action. 1 Staff Report 14606 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=79 2 Achieving 80% reductions in greenhouse gas emissions from 1990 levels by 2030. 10 Packet Pg. 275

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The Climate Action section focuses on launching higher potential, lower cost emissions reduction programs, building community confiden ce in the S/CAP, and laying the foundation for post -2025 work. The Sustainability section focuses on reducing waste, creating a sustainable and holistically managed water system, adapting to a changing climate, and enhancing the City’s thriving urban canopy.

Included in the draft 2023-2025 S/CAP Work Plan are:
• Priorities for 2023-2025 Climate Action work (Attachment A, Section 2.I, pg 3) • 51 Climate Action work items (Attachment A, Section 2.III, pp 5 -17) and 27 Sustainability work items (Attachment A, Section 3, pp 18-23) • Policy guidelines for development of a Reliability and Resiliency Strategic Plan (Attachment A, Appendix C, pg 29)
Policy guidelines for development of an Electric Vehicle Strategic Plan (Attachment A, Appendix D, pg 30)

Background
Attachment C provides a detailed history of the S/CAP to date. Staff began California Environmental Quality Act (CEQA) review of the S/CAP upon Council’s October 3, 2022 acceptance of the S/CAP Goals and Key Actions, with the goal of formally adopting the full S/CAP report in early 202 3. The 2023 -2025 Work Plan will guide staff work after adoption, and there is a great deal of staff work included in the 2023 -2025 S/CAP Work Plan that can proceed even before formal adoption.

Discussion
There are two sections to the draft 2023-2025 S/CAP Work Plan : Climate Action and Sustainability.

Climate Action
P1. Complete grid modernization plan and begin construction to increase reliability and transformer capacity for electrification
P2. Launch effective programs for emissions reductions with the highest impact and lowest cost, including single -family electrification, strategic promotion of electric vehicles (EVs), commercial rooftop heating, ventilation, and air conditioning (HVAC), and expanded transportation alternatives
P3. Build community awareness and confidence in electrification through engagement, addressing concerns, and program results
P4. Identify an additional 9% in emissions reduction opportunities to achieve the 80x30 goal
P5. By 2024 , identify funding needed and potential fund ing sources for full scale implementation of highest impact emissions reductions
Table 1 below summarizes how these priorities are implemented in 2023-2025. Staff will 10 Packet Pg. 276

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focus on increasing electric grid capacity while launching high potential, lower cost programs focused on residential heat pump water heaters (HPWH), commercial packaged rooftop heating, ventilation, and air conditioning (HVAC), and previously funded transportation programs. Funding needs and sources for these high potential programs will be evaluated. Studies on accelerating EV charger penetration in multi - family buildings (including affordable housing) and providing EV chargers in workplaces and business districts will be completed . Publicly-owned EV charging may also be part of the solution ; and t he Bicycle/Pedestrian Plan will be updated. A study of potential multi-family and non -residential electrification opportunities will be completed. This work will be performed with the intent of building community confidence in the City’s emissions reduction efforts, which will require results, engagement, and some focus on electric system reliability and resiliency.

Table 1: Climate Action Priorities: Summary of Work Items and Timeline Priority 2023 (after certification of
environmental review)3
2024 2025
P1
(Modernize
grid)
• Grid modernization study
completion, hire contractor
• Reliability/Resiliency
Strategic Plan
• Begin a 5-7 year construction effort to increase
reliability and transformer capacity
• Implement Reliability and Resiliency Strategic Plan
P2 (Launch
programs)
Design and launch programs:
• Full-scale HPWH program
• Pilot commercial HVAC
• Municipal electrification
• Downtown parking
management program
• On-demand transit pilot
• Single-family whole home
• Full-scale commercial HVAC
• Full-scale multi-family EV
charger
• Design and launch
additional programs
based on the 2024
studies (See P4 for
other studies that may
result in new
programs) and the EV
Strategic Plan
Studies to guide program launches:
• EV Strategic Plan
• Multi-family and income-
qualified EV charging plan
•
• Bicycle/Pedestrian Plan
update

• Commuter emissions
reduction strategic plan
• Workplace and visitor EV
charger strategic plan
• Vision Zero program
P3 (Build Continued public engagement and marketing. Report results from new and existing programs:

3 It may be possible for some work to proceed prior to certification of environmental review, but other items ma y need environmental review to be completed prior to Council action (e.g. hiring a contractor for grid modernization work)
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Priority 2023 (after certification of
environmental review)3
2024 2025
awareness
and
confidence)
• New program: HPWH pilot
• Existing programs:
• Existing Mobility
programs
• Multi-family EV charger
• New programs: Full-scale
HPWH program,
commercial HVAC pilot
• Continuation of existing
programs
• New programs; Full-
scale HVAC, multi-
family EV charger
• Continuation of
existing programs
To address reliability and resiliency concerns, implement “Next Steps” from 8/16/21 Energy Storage report (Staff Report 121944) as time permits P4
(Additional
emissions
reductions)
• Seek ideas from community
members and other experts
• Multi-family and non-
residential electrification
study

P5
(Funding
needs and
sources)
• Evaluate costs for full scale
implementation of high
potential/lower cost
emissions reductions
• Preliminary evaluations of
potential funding sources
• Decisions on how to fund
priority electrification areas

Sustainability
The Sustainability section of the draft work plan implements the S/CAP goals for a sustainable natural environment (including reducing waste, creating a sustainable and holistically managed water system, and a thriving urban canopy) by:

• Reducing water consumption while exploring ways to capture and store water, and increase the availability and use of recycled water • Developing and adopting a multi-year Sea Level Rise Adaptation Plan • Minimizing wildland fire hazards through Foothills Fire Management Plan implementation, zoning, and collaborating with Fire agencies • Increasing Palo Alto’s Tree Canopy and reducing pesticide us age in parks and open space preserves
• Supporting the Green Stormwater Infrastructure (GSI) Plan and incorporating it in municipal projects
• Encouraging food waste reduction, prevention, and recovery and providing waste prevention technical assistance
• Eliminating single-use disposable containers and prioritizing domestic processing

4 Staff Report 12194 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2021/08-august/20210816/20210816pccsm-final.pdf 10 Packet Pg. 278
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of recyclable materials
The Sustainability section Key Actions were prioritized based on the co -benefits analysis conducted by the City’s consultant, AECOM.

The draft 2023-2025 S/CAP Work Plan implements the direction of the S/CAP Ad Hoc Committee as put forth in the October 3 rd City Counci l Motion (October 3 Action Minutes, page 4 5) to refer to S/CAP Ad Hoc committee to begin work on the following and present to the City Council by yearend an outline of:

1. Identification of community partner organizations and how they can help support the S/CAP moving forward

2. Preliminary committee review of a prospective commercial HVAC electrification program (E2)

3. An EV strategic plan (EV1-10)
It does this by creating a work plan and timeline for taking action on the items listed above.

Governance
There is a range of oversight work involved in the development and implementation of S/CAP programs. Staff has identified three main categories:
• Policy-level strategic guidance: These are highly visible decisions with significant policy or political implications. For example, the Council S/CAP Ad Hoc Committee provided guidance on where to focus the City’s initial efforts on emissions reduction, resulting in the Advanced Heat Pump Water Heater Pilot Program approved October 3, 2022, the S/CAP Goals and Key Actions, and the 2023-2025 draft S/CAP Work Plan.
• Oversight of ongoing work: As S/CAP work efforts or programs are launched an oversight body or bodies will need to be available to receive progress updates and make ongoing policy decisions as they arise. An example might be reports on various S/CAP key performance indicators (KPIs) or periodic status updates on the Advanced Heat Pump Water Heater Pilot Program after it launches. • Operational-level strategic guidance: These are decisions with significant operational impacts that require in-depth technical discussions. An example is the discussions of low-wattage EV charging solutions and how they relate to grid modernization undertaken by the S/CAP Committee. The in-depth detailed level of these discussions can be overwhelming to a body with a broad set of oversight responsibilities instead of a narrow set of responsibilities.

At its April 19, 2021 meeting Council directed the Mayor to convene an S/CAP Ad Hoc Committee which has provided recommendations to Council on S/CAP-related policy 5 October 3 Action Minutes, page 4 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20221003/20221003amccsm.pdf#page=4 10 Packet Pg. 279

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decisions and prioritization. Staff is requesting that Council provide direction on continuing governance in 2023 as staff completes the S/CAP Update work and begins work on implementation. Some alternatives include:
• Managing with the full Council
• Delegating to the Council Finance or Policy and Services Committee • Forming another Council Ad Hoc Committee
• Delegating to an existing Board or Commission
• Developing a new Commission

1. Full Council or Council Committee
Staff recommends against attempting to manage the entire S/CAP with the full Council or even a standing Council committee, since the complexity of the effort could potentially be overwhelming given the volume of other business. Certain issues might lend themselves to delegation to specific standing committees. For example, discussion of funding sources and needs might be appropriate to the Finance Committee.

2. Council Ad Hoc Committee
A new ad hoc committee, while temporary in nature, could provide policy direction while a longer-term governance structure is being established. If a new ad hoc committee were established, staff would recommend clearly stating the expected term and scope of responsibilities. Establishing a new ad hoc could also facilitate the continuation of involvement and input from community members who have been involved as Working Group and Working Group Team contributors over the past year. Designating a member of the new ad hoc committee as the Utilities Advisory Commission liaison could also be an effective means to connect the related work of the two bodies. Staff would also recommend establishing ways for the Council to delegate some work to other bodies with feedback from the ad hoc committee to ensure coherence of the overall work plan. Once the work plan is approved (anticipated mid-2023), there will be a high volume of work to be reviewed and discussed, and an ad hoc committee may not be able to keep up on its own.

3. Existing Board or Commission
The other existing bodies with expertise relevant to the S/CAP are the Utilities Advisory Commission (UAC), the Planning and Transportation Commission (PTC), and the Parks and Recreation Commission (PRC). Although all of these bodies have some responsibilities relevant to the S/CAP, the UAC’s role reviewing utility programs, utility finances, and utility infrastructure is by far the most relevant to much of the core work in the work plan. Additionally, the PTC reviews transportation policy and zoning code provisions that can affect how electrified equipment is installed, and the PRC serves in an advisory role on implementation of Urban Forestry programs relevant to the S/CAP’s Natural Environment goals. Oversight of the entire S/CAP would represent a very significant expansion of oversight 10 Packet Pg. 280

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responsibilities for any of the bodies, but each could make recommendations to Council or a Council Ad Hoc Committee on specific issues.

4. Climate Action Commission
In the longer-term, Council could consider a new Commission with responsibility for S/CAP oversight. At its October 3, 2022 meeting, Council directed staff to bring information on the design of a Climate Action Commission that would include student members when returning with the draft work plan. A Climate Action Commission may need to coordinate closely with other Commissions such as the UAC or PTC on specific issues, and potentially eliminate certain issues from those commissions’ areas of responsibility in order to avoid duplication and provide clarity.

This would be necessary to provide a single body for oversight of the S/CAP Climate Action programs. Staff’s initial estimate is that support of the new Commission would require an additional 0.25 to 0.33 FTE of admin time not currently budgeted.

Table 2 provides staff’s initial assessment of the design parameters for a Climate Action Commission.

Table 2: Design Parameters of a Potential Climate Action Commission Appointees 5 or 7 members, including 1 or 2 student members Meeting Frequency Monthly or Semi-monthly during more intensive S/CAP program development in next 2-3 years; less frequently
during ongoing implementation activities thereafter
Meeting
Requirements
Subject to Brown Act; all meetings publicly noticed and including public participation
Role Forum for discussion and recommendations to Council on S/CAP program development and implementation; requires
analysis and definition to avoid overlap with advisory roles of other Boards and Commissions
Implementation
Steps
Council decisions on size and scope; update to Municipal Code to codify new Commission; address staffing
requirements; Commissioner application process; Council interviews and Commission selection; commence Commission activity
Likely Minimum
Time to Commence
1 – 1 ½ years

Given the emphasis on strategic studies and program development during the first one to two years of the work plan, it is most important to obtain Council guidance on S/CAP governance over that initial timeframe.

Timeline
The timeline for this draft work plan is calendar years 2023 through 2025. Many elements of the work plan are contingent on certification of environmental review, 10 Packet Pg. 281

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expected in spring 2023. A more detailed timeline for individual work items is included in Attachment B.

Resource Impact
Subject to certification of the S/CAP environmental review, the FY 2023 work items in the 2023-2025 draft S/CAP Work Plan can proceed with the actions approved in the FY 2023 Adopted Budget. Staff expects to submit additional resource requests as part of the annual budget process in subsequent years as the work plan proceeds for t he following areas:
• Funding for newly -launched programs: As new programs are proposed for launch, funding for third-party program operators, rebates, and other expenses may be recommended to manage the programs.
• Program sales and marketing: Additional resources (consultants and/or staffing) may be needed for sales and marketing of future programs. Council partially approved these resources along with i ts October 3, 2022 approval of the Advanced Heat Pump Water Heater pilot program (Staff Report 146066). • Permit review: Permit activity associated with new programs will create a need for permit review staff and/or consultants. Council approved p ermit review resources for the Advanced Heat Pump Water Heater Pilot Program (Staff Report 146067), but not for future programs. These resource requests will be recommended to be funded by increased permit revenue.
• Capital budgets for grid modernization: Additional engineering staffing has already been approved for grid modernization work, but capital budgets for design and construction work have not yet been proposed. Staff will recommend projects as part of the development of the 2024 -2028 five -year Capital Improvement Plan.
• Consulting budgets: Consulting budgets for calendar year 2023 and 2024 studies may be proposed in the FY 2024 budget if needed.

Some items in other work plans are also relevant to the S/CAP Work Plan. The Utilities Strategic Plan, for example, includes workforce development and advanced metering infrastructure (AMI) work items that are directly relev ant to the S/CAP. Some of these may involve future budget requests as well.

Policy Implications
The 2023-2025 S/CAP Work Plan aligns with one of the top four Council Priorities for CY 2022: “Climate Change - Protection and Adaptation.”

Stakeholder Engagement

6 Staff Report 14606 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas- minutes/city-council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=79 7 Staff Report 14606 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas- minutes/city-council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=79 10 Packet Pg. 282

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Wide-reaching and coordinated public engagement was done as part of the S/CAP Update prior to acceptance of the proposed S/CAP Goals and Key Actions. Feedback from these engagement processes informed development of the draft 2023-2025 S/CAP Work Pla n. For a summary, please see the Stakeholder Engagement section of Staff Report 146068, packet page 101. Additional engagement on the 2023-2025 S/CAP Work Plan included a meeting with the Council S/CAP Ad Hoc Committee’s Working Group on November 4, 2022. Staff incorporated the Working Group’s feedback and are developing an overall set of guiding principles that will be included in the S/CAP Report.

These principles will guide implementation of the S/CAP.

Environmental Review
Staff commenced CEQA evaluati on of the S/CAP, including the Work Plan elements described in this staff report, upon Council’s Oct ober 3, 2022 acceptance of the proposed S/CAP Goals and Key Actions. Once CEQA review concludes, staff will bring a complete S/CAP report and a formal Work Plan to Council for adoption. Any formal government actions stemming from work items in the S/CAP 2023 -2025 Work Plan that occur prior to completion of the S/CAP’s CEQA review will be independently evaluated on a project by project basis.

Attachments:
• Attachment10.a: Att A: 2023-2025 S/CAP Work Plan
• Attachment10.b: Att B: 2023-2025 S/CAP Work Plan Timeline • Attachment10.c: Att C - Background on Sustainability and Climate Action Plan

8 Staff Report 14606 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas- minutes/city-council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=101 10 Packet Pg. 283
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DRAFT
City of Palo Alto Sustainability and Climate Action Plan Implementation Work Plan (2023 through 2025)

Table of Contents:

1. Executive Summary

2. 2023-2025 Climate Action Section Work Plan: Making Progress on the 80x30 Goal i. Climate Action 2023-2025 Priorities
ii. Summary Timeline, 2023-2025
iii. Climate Action 2023-2025 Work Plan

3. 2023-2025 Sustainability Section Work Plan: Creating a More Sustainable Natural Environment

Appendix A: Detailed Implementation Timeline
Appendix B: How Climate Action Priorities were Prioritized Appendix C: Policy Guidelines for Electric Vehicle Strategic Plan Development Appendix D: Policy Guidelines for Reliability and Resiliency Strategic Plan Development Appendix E: Index of S/CAP Key Actions and the Work Plan Items that Implement them

1. Executive Summary
This work plan implements the City’s Sustainability and Climate Action Plan (S/CAP). In November 2016 the Council adopted the S/CAP Framework, which has served as the road map for achieving Palo Alto’s sustainability goals. On October 3, 2022, the City accepted an updated set of Goals and Key Actions and is performing CEQA review with the goal of formally adopting the S/CAP in spring of 2023. This work plan implements this updated set of Goals and Key Actions.

The Goals and Key Actions are divided into eight areas, four of which are climate-focused and include actions to achieve the City’s “80x30”1 and carbon neutrality2 goals (Climate Action, Mobility, Electric Vehicles, and Buildings) and four of which are focused on actions that create a sustainable natural environment and adapting to a warming climate but do not contribute significantly to the 80x30 goal (Natural Environment, Zero Waste, Water, and Sea Level Rise).

Based on Council’s acceptance of the S/CAP Goals and Key Actions, staff and the Ad Hoc Subcommittee developed five Climate Action priorities for 2023 through 2025, which are listed in Section 2.i below:

It includes a variety of work items for achieving these priorities, including:
• Promoting electric vehicles (EVs) for residents, commuters, visitors, and other users (e.g. deliveries, rideshare) and regionally, including micromobility (e-bikes, e-scooters, and other small EVs). • Reducing vehicle miles traveled through citywide Mobility programs, including parking management, piloting on- demand transit, implementing the City’s Housing Element, and updating the Bicycle Plan • Launching an Advanced Heat Pump Water Heater Pilot Program and scaling it up

1 The 80x30 goal is to reduce Palo Alto greenhouse gas emissions 80% from 1990 levels by 2030 2 Carbon neutrality means that all GHG emissions emitted into the atmosphere are balanced in equal measure by GHGs that are removed from the atmosphere, either through carbon sinks or carbon capture and storage

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• Beginning a strategic upgrading of capacity in the residential areas of the electric grid and promoting whole home electrification in the upgraded areas
• Expanding access to EV charging in multi-family buildings (including affordable housing) and exploring ways to electrify those buildings as well
• Electrifying commercial rooftop packaged heating, ventilation, and air conditioning (HVAC). • Partnering with major employers on emissions reduction plans, including commuter emissions • Electrifying City buildings and vehicles where feasible • Engaging City operations to support these goals
• Exploring additional emissions reduction opportunities by surveying multi-family and non-residential building equipment and exploring other ideas from the community (e.g. shuttles, shared vehicles) • Evaluating funding and resource needs of the above programs and identifying viable funding sources.

This work plan implements the S/CAP goals for a sustainable natural environment (including reducing waste, creating a sustainable and holistically managed water system, and a thriving urban canopy) by:
• Reducing water consumption while exploring ways to capture and store water, as well as to increase the availability and use of recycled water
• Developing and adopting a multi-year Sea Level Rise Adaptation Plan • Minimizing wildland fire hazards through Plan implementation, zoning, and collaborating with Fire agencies • Increasing Palo Alto’s Tree Canopy and reducing pesticide use in parks and open space preserves • Supporting the Green Stormwater Infrastructure (GSI) Plan and incorporating GSI in municipal projects • Encouraging food waste reduction, prevention, and recovery and providing waste prevention technical assistance
• Eliminating single-use disposable containers and prioritizing domestic processing of recyclable materials

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2. 2023-2025 Climate Action Section Work Plan: Making Progress on the 80x30 Goal The Climate Action section of the S/CAP focuses on achieving the City’s 80x30 goal, and includes goals and key actions primarily focused on reducing emissions in transportation and buildings. The climate action sections of the S/CAP itself are divided into four topic areas (Climate Action, Mobility, EVs, and Energy), but this work plan is intended to prioritize and organize those key actions, so work plan items are organized according to five 2023-2025 Climate Action section priorities.

2.i 2023-2025 Climate Action Section Priorities
The following five priorities are intended to focus the City’s efforts on the highest potential and lowest cost emissions reduction actions and supporting efforts to enable the City’s programs in these areas to be as impactful as possible.

Appendix B outlines how the highest priority emissions reduction actions were chosen (single-family residential electrification, expanding EV charging access, commercial rooftop packaged HVAC, and Mobility). EV charging is a complex topic with a variety of different types of vehicle owner needs and potential electric grid impacts and benefits, and Appendix C outlines the guiding principles the City used for developing electric vehicle charging work items. These principles will also be reflected in any studies done on EVs or EV programs developed.

The 2023-2025 climate action section priorities are:

P1. Complete grid modernization plan and begin construction to increase reliability and transformer capacity for electrification
P2. Launch effective programs for emissions reductions with highest impact and lowest cost: single-family electrification, strategic promotion of EVs, commercial rooftop HVAC, and expanded transportation alternatives P3. Build community awareness and confidence in electrification through engagement, addressing concerns, and program results
P4. Identify an additional 9% in emissions reduction opportunities to achieve the 80x30 goal P5. By 2024 identify funding needed and potential funding sources for full scale implementation of highest impact emissions reductions

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2.ii 2023-2025 Climate Action Summary Timeline
The proposed timeline for the 2023-2025 Climate Action section work items (which are listed below in section 2.c) is outlined below. The proposed timeline is contingent on certification of environmental review and may be modified accordingly. A more detailed timeline for each work plan item is included in Appendix A.

Priority 2023 2024 2025
P1 (Modernize
grid)
• Grid modernization study
completion, hire contractor
• Reliability/Resiliency Strategic
Plan
• Begin a 5-7 year construction effort to increase reliability and transformer capacity
• Implement Reliability and Resiliency Strategic Plan
P2 (Launch
programs)
Design and launch programs:
• Full-scale HPWH program
• Pilot commercial HVAC
• Municipal electrification
• Downtown parking
management program
• On-demand transit pilot
• Single-family whole home
• Full-scale commercial HVAC
• Full-scale multi-family EV
charger program (tentative)
Design and launch additional
programs based on the 2024
studies (See P4 for other studies
that may result in new
programs) and the EV Strategic
Plan
Studies to guide program launches:
• EV Strategic Plan
• Multi-family and income-
qualified EV work plan
• Bicycle Plan update
• Work plan for commuter and
visitor EV charging and EV
promotion
• Vision Zero program (tentative)
P3 (Build
awareness and
confidence)
Build awareness of the need for climate action and the City’s services and achievements. Drive community actions to achieve S/CAP goals. Build confidence in the City’s electric infrastructure. Report results from new and existing programs:
• New program: HPWH pilot
• Existing programs:
• Existing Mobility programs
• Multi-family EV charger
• New programs: Full-scale HPWH
program, commercial HVAC pilot
• Continuation of existing programs
• New programs; Full-scale
HVAC, multi-family EV
charger
• Continuation of programs
P4 (Additional
emissions
reductions)
• Seek ideas from community
members and other experts
• Monitor technologies and
medium term opportunities
• Multi-family and non-residential
electrification study
• Study highest potential community
ideas/technologies
• Evaluate new programs
based on studies
P5 (Funding
needs and
sources)
• Evaluate implementation cost
for full scale high impact /
lower cost programs
• Preliminary evaluations of
potential funding sources
• Decisions on how to fund priority
electrification areas
• Develop financial and operational
plan for gas utility
• Implement follow up from
prior-year studies

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2.C Climate Action 2023-2025 Work Plan
The climate change topic areas of the S/CAP (Energy, EVs, Mobility, and Climate Change) are highly inter-related. Multiple key actions can affect the same community members in various ways. For example, a multi-family building owner might do a project that builds EV charging, bike storage, and electrifies some building equipment, which touches all three topic areas. Programs should be as simple as possible for the community. As a result, the work plan below is organized according to the type of activity and the part of the community served instead of being organized by the S/CAP topic areas. The key actions being implemented are listed next to each work plan item, and an index is provided in Appendix D to help readers map the Key Actions from the S/CAP to all implementing work plan items.

The work plan is organized according to the priorities above, as follows:

P1. Grid Modernization: Complete grid modernization plan and begin construction to increase reliability and transformer capacity for electrification P2. Launch Programs: Launch effective programs for emissions reductions with highest impact and lowest cost: single-family electrification, strategic promotion of EVs, commercial rooftop HVAC, and expanded transportation alternatives P2.1 Residential Emissions Reduction
P2.2 Non-Residential Emissions Reduction
P2.3 Citywide Mobility
P2.4 Municipal Electrification
P2.5 EV Strategic Plan
P3. Build Awareness and Confidence: Build community awareness and confidence in electrification through engagement, addressing concerns, and program results
P4. Additional Emissions Reductions: Identify an additional 9% in emissions reduction opportunities to achieve the 80x30 goal P5. Funding Needs and Sources: By 2024 identify funding needed and potential funding sources for full scale implementation of highest impact emissions reductions

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Grid modernization is critical, particularly for residential electrification. The programs below will impact the electric grid, and there are also supporting grid- related efforts that could reduce barriers to electrification citywide, such as examining electric rate design, low wattage solutions, and fee structures for transformer upgrades. Electric grid reliability and resilience will be important to inspiring confidence in electrified homes and vehicles.

Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

1.A Grid Modernization Study E8 Complete a grid modernization study covering scope, designs, high
level cost estimates, and estimated
implementation timelines for
electric system upgrades.

Recruitment
challenges.

Planning fully
funded.

Implementation
funding needs
under review.

Dec ‘22: Complete study
Dec ’23: Complete
design, bring contractor
on board
Early 2024: Begin
construction

Consultant hired, study in
progress, nearing release
of initial draft study

1.B Reliability and Resiliency
Strategic Plan
E8 Develop Reliability and Resiliency
strategic plan based on principles
in Appendix D

Fully staffed,
funding needs
under evaluation
Dec 2023

Not started

1.C Reliability and Resiliency
Strategic Plan Implementation
E8 Implement Reliability and
Resiliency Strategic Plan
Staffing and
funding needs to
be evaluated
To be evaluated as part
of 1.B
Policy guidelines for plan
development to Council
December 5, 2022

1.D Evaluate Utility Rates and Fees E6 Evaluate utility rate designs and fee structures in the context of
future electrification, implement
any needed changes
Fully funded Mar 2023 Cost of service evaluation
in progress

P2.1: Residential Emissions
The long-term goal in residential areas is full electrification of vehicles and buildings, but some electrification of some types of buildings is easier and less costly than others. Single-family homes tend to be easier and less costly to electrify than multi-family buildings. It is easier to install EV charger access as well. Grid capacity is an important consideration that drives the work plan in residential areas. The plan below prioritizes individual heat pump water heating electrification

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The work plan for multi-family residential emissions reduction prioritizes EV charger access in multi-family homes. EV chargers are relatively easy to install without City assistance in single-family homes, but the City’s multi-family EV program will help multi-family building owners and condo associations install EV chargers so residents can access the savings and emissions reductions from EVs. This work plan includes development of a strategy to scale successful existing multi-family EV charging pilot programs to all multi-family buildings in Palo Alto. Multi-family building electrification requires more study to develop cost- effective strategies, since early studies and pilots have found multi-family building electrification to be very expensive. But more pilots in affordable housing projects, where grants and other funding might be available, would help the City get experience and develop strategies. All programs will be developed with equity in mind, considering how to serve low-income residents and renters.

Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
All Residential

2.1 A Promote EV Adoption EV1,EV4 Offer Workshops and Events to raise awareness of EVs, including
electric micromobility options and
incentives. Work item subject to
change based on EV Strategic Plan
(see 2.5A).

Fully staffed and
funded, staffing
issues may
impact this in the
short term
Ongoing In 2022 conduct 33 EV
related workshops and
expos. Contracting in
progress to offer more
awareness raising
opportunites in 2023.

2.1 B Emissions Reduction Advisory
Services
C1 Provide single points of contact for
online and phone advice for
residents to reduce building and
transportation emissions.

Fully staffed and
funded
Dec ‘23: Phone advising

Timeline for launch of
online services under
evaluation
RFP responses evaluated
and contract negotiations
are in progress

2.1 C Evaluate small electric
vehicles (e.g. e-bike) program
potential
EV4 Evaluate alternatives for providing
residential small electric vehicle
programs or pilots. Work item
subject to change based on EV
Strategic Plan (see 2.5A).

Fully staffed and
funded, though
staffing issues
may impact this
in the short term
Complete evaluation by
December 2023
RFP being written
Single-family Residential

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Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

2.1 D Heat Pump Water Heater
Electrification Pilot Program
E1,E5 Launch a pilot heat pump water
heater electrification pilot to
achieve 1000 gas water heater
replacements by the end of 2023
Partly staffed and
funded – sales/
marketing needs
being evaluated
Launch late 2022 / early
2023, aim to achieve
goal by Dec 2023
Council approved program
on October 3, staff
implementing the plan

2.1 E Full-Scale Heat Pump Water
Heater Electrification
Program
E1,E5 As pilot program nears its goals,
transition to a full-scale program
with the goal of electrifying all
water heaters in Palo Alto
Fully staffed for
design, staffing /
funding needs to
be determined
Based on pilot program
progress, tentatively
late 2023
Some preliminary analysis
completed, otherwise not
started.

2.1 F Electrification data collection
program
E1 Do home evaluations to collect
data and help people plan for
equipment or whole home
electrification
Fully staffed,
funding needs
under evaluation
Program up and running
by December 2023
Contract negotiations in
progress

2.1 G Pilot Programs for
Modernized Neighborhoods
E1,E5 Identify and launch electrification
programs for neighborhoods with
increased electric capacity such as
whole home or heat pump space
heating pilot programs
Fully staffed,
funding needs
under evaluation
Program design and
approvals by Dec 2024
Not started

2.1 H Single-family Electrification
Rebates
E1 Establish rebates for all appliances
and equipment in single-family
homes
Fully staffed and
funded
Launch rebates by
spring of 2024
Some analysis done, but
moving slowly due to
conflicting priorities
Multi-family Residential

2.1 I Affordable Housing EV
Charging and Electrification
Pilot
E5,EV5,
EV7
Design a pilot electrification and EV
project in an affordable housing
multi-family building to test
potential scalable approaches.

Work item subject to change based
on EV Strategic Plan (see 2.5A).

Fully staffed,
funding needs
under evaluation
Complete pilot design
by December 2023
Partner identified, grant
secured for EV charging,
contract negotiations in
progress for electrification
pilot management, some
analysis completed.

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Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

2.1 J Multi-Family EV Charger
Program
EV5,EV6
EV7
Establish rebates and EV charging
technical assistance , with the goal
of expanding charger access to
10% (1,100 units) of multifamily
households. Work item subject to
change based on EV Strategic Plan
(see 2.5A).

Fully staffed and
funded
Aiming for 1,100 units
by December 2025
100+ multifamily
properties actively
proceeding in programs to
install EV chargers

2.1 K Multi-family and Affordable
Housing Electrification and
EV Charger Access Strategy
Development
C8,EV6,
EV7,EV8
Evaluate potential scalable
strategies for multi-family and
affordable housing EV charger and
electrification programs, including
the role of publicly-owned EV
charging, such as in rights-of-way.

Work item subject to change based
on EV Strategic Plan (see 2.5A).

Fully staffed and
funded for
evaluation,
implementation
needs TBD
Complete evaluation by
December 2023
Evaluating responses to
RFP issued for multi-family
electrification services,
analyses of potential
program designs / funding
sources in progress.

P2.2: Non-Residential Emissions
City staff has less experience and knowledge with electrification of non-residential building equipment than with electrification of other types of building equipment. In section 6 of this work plan there are several studies planned that could help staff develop building electrification strategies for the non-residential sector. In the meantime, rooftop packaged heating, ventilation, and air conditioning (HVAC) units are potentially cost-effective to electrify. This work plan includes running a small initial pilot while simultaneously designing a potential advanced pilot and evaluating the potential for mandated electrification for end of life replacements. These rooftop HVAC programs and/or mandates can reduce emissions in major facilities as well (see Section 5) In addition, staff plans to partner with major facility owners in Palo Alto to help them achieve their sustainability goals. Ideally these partnerships would include both building electrification, promotion of alternative transportation and EVs for commuters, and expanded EV charger access. A successful partnership with at least one major employer could provide an example that could lead to future employer partnerships, while a partnership with the schools could be an educational opportunity that leads to more awareness of electrification among residents.

Staff estimates about a third of transportation emissions come from drivers entering Palo Alto to visit or do business. The City is limited in its ability to affect these emissions, but partnering regionally to promote alternative transportation modes and personal and fleet EVs should help.

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Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

2.2 A Rooftop Packaged Heating,
Ventilation, and Air
Conditioning (HVAC) Pilot
E2,C8,
E7
Continue HVAC pilot with the goal
of completing 4-5 installations
Fully funded December 2023 Program launched,
recruiting participants

2.2 B Rooftop Packaged HVAC
Advanced Pilot Design
E2,C8,
E7
Develop proposal for an advanced
pilot program and/or mandate
Fully funded Proposal to Council for
approval by Dec 2023,
implementation 2024
Not started

2.2 C Major Employer Partnerships C2,E2,
E3,EV3,
other
Develop custom sustainability
partnership with at least one major
employer, electrification pilots
with City facilities and PAUSD.

Work item subject to change based
on EV Strategic Plan (see 2.5A).

Fully funded for
design, not
implementation
Complete goals listed in
“Description” column by
December 2023
Preparing to start
discussions with various
employers and PAUSD

2.2 D Commuter Transportation and
EV Charging Strategy
C8,EV1,
EV3,EV8
Develop a strategy to promote EV
adoption (including small EVs like
e-bikes/e-scooters) and alternative
transportation to commuters.

Evaluate workplace charger
programs and/or mandates,
including role of publicly owned
business district EV charging. Work
item subject to change based on
EV Strategic Plan (see 2.5A).

Fully staffed,
consultant
funding needs
being evaluated.

Implementation
needs TBD.

Complete plan by end of
December 2024,
implementation
timeline TBD
Not started

2.2 E Regional and State
Partnerships
EV2,
EV10
Identify promising regional
partnerships and State programs
for potential City participation.

Work item subject to change based
on EV Strategic Plan (see 2.5A).

Under evaluation Ongoing Not started

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Road transportation represents the largest percentage of Palo Alto’s existing carbon footprint – and a congestion headache. Reducing vehicle miles traveled is an important element in reducing these emissions. Reductions are achieved through a comprehensive citywide effort to increase access to alternative modes and awareness of the benefits complemented by programs for specific groups within the community. Land use is an important lever for affecting vehicle miles traveled. The City already has a variety of transportation programs and is addressing land use via its Comprehensive Plan process (including the Housing Element) and subsequent implementation. The work plan below acknowledges those efforts and aims to modestly expand them as staff time and funding permit.

Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

2.3 A Transportation and Land Use
Policies and Programs
M1 Continue to implement existing
transportation policies and
programs to reduce VMT
Fully funded Ongoing Continuing to work on
Council Transportation
priorities including grade
separation, street closures

2.3 B Housing Element Adoption M7, M9 Update the Housing Element for 2023-2031.

Fully funded January 2023 Draft document being
prepared for Council
consideration

2.3 C Housing Element
Implementation
M7, M9 Implement the 2023-2031 Housing
Element, which is projected to
reduce VMT
Funding via
grants and
annual City
budget process
2031 Not started – awaiting
Housing Element adoption

2.3 D Micro-mobility evaluations M2 Evaluate opportunities to pilot bike/scooter share and
neighborhood mobility hub pilots
to provide last-mile connections
Proceed as staff
time is available
No target, proceed as
time is available
Some design work and
research completed, staff
aims to develop potential
funding and/or staffing
proposals as time permits.

2.3 E On-demand transit pilot M2 Launch on-demand transit pilot to provide last-mile connections for
100% of the city for a limited time
Fully funded for
two years
Launch by Mar 2023 Reviewing proposals for
on-demand transit provider

2.3 F Update Bicycle Plan M3 Update the 2012 Bicycle and Pedestrian Transportation Plan
Fully funded Dec 2024 Awaiting consultant
proposals in response to
RFP issued in fall 2022

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Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

2.3 G Vision Zero Program M3 Program to reduce roadway severe injuries and fatalities to zero
Applied for grant
funding for
planning
To be determined,
depends on whether
grant is received
Applied for Federal Safe
Streets for All grant to fund
a safety action plan.

Implementation would
require additional staffing
and funding

2.3 H Evaluate expansion of
employer transportation
demand management (TDM)
M4 Evaluate possible alternatives to
expand TDM ordinance
requirements and/or voluntary
TDM services (e.g. expanding the
Transportation Management
Association)
Proceed as staff
time is available
No target, proceed as
time is available
Some design work and staff
research has been done,
staff exploring ways to fund
and staff a study of options
as time permits.

2.3 I Proposals for Managing
Downtown Parking Availability

M5 Develop proposals for pricing
strategies to manage parking
supply and availability
Fully funded Fall 2022 Proposals to be shared with
Council in Fall 2022

2.3 J Implement Efficient
Downtown Parking
Management

M5 Implement proposals for pricing
strategies to manage parking
supply and availability
Funding and
staffing to be
determined
Spring 2023 RFP for management
services in development

2.3 K Traffic Signal Improvements &
Transit Signal Priority
M8 Maintain and modernize current
traffic signals and central
management systems. Use
technology to improve traffic
operations and safety. Work with
transit providers on transit signal
priority where feasible.

Mostly funded,
long-term
funding needs
being evaluated
Ongoing Long-term system plan in
development. Supporting
transit signal priority
project for Dumbarton
Express. Implementing
Automated Traffic Signal
Performance Measures to
improve signal timing.

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A priority for the Council in development of the S/CAP was that we lead by doing. Electrification of City facilities and the vehicle fleet is a critical part of that. In addition, if increased publicly-owned EV charging becomes a part of multi-family and/or business district EV charger strategies (see P2.1K and P2.2D), a detailed plan for maintenance and operation will be needed.

Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

2.4 A Facility Electrification
Assessment Plan
E4 Complete an assessment of
electrification opportunities at City
facilities
Fully funded Under evaluation Assessment of all City
facilities is underway

2.4 B Facility Electrification
Assessment Implementation
E4 Implement recommendations from
the Facility Electrification
Assessment Plan where feasible
Under evaluation Under evaluation Not started

2.4 C Electrify Equipment at City
Facilities during Routine
Replacement
E4 Evaluate the feasibility of
electrification when doing end of
life equipment replacements
Under evaluation Under evaluation On-going. The mechanical equipment at MSC-B is at
the end of its service life
and we are currently
looking into electric
replacement solutions

2.4 D Electrify City Vehicle Fleet EV9 Convert all Palo Alto municipal vehicles to EVs when feasible and
when the replacement is
operationally acceptable.

Evaluated with
each
replacement
On-going There are two units
identified in FY23 for
potential EV replacements,
pending manufacturer
availability and cost

2.4 E Build City Fleet and Employee
Charging Infrastructure
EV9,EV3 Expand charging at City facilities to
support an electrified fleet and
employee EV adoption
Under evaluation Under evaluation We are currently testing a low cost EV charger
solution that could be
used for future employee
charging locations

2.4 F Publicly-owned charger
strategic plan
EV8 Evaluate potential publicly-owned
EV charger strategies. Work item
subject to change based on EV
Strategic Plan (see 2.5A).

Staffing and
funding needs
under evaluation
Residential plan – by
Dec ‘23 (see P2.1 K)
Business district plan –
by Dec ‘24 (see P2.2 F)
Not started

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Several work plan items relate to electric vehicle promotion and programs to improve access to charging. Coordinating staff effort across a variety of efforts focused on many different parts of the community requires some level of coordination. This strategic plan will guide development of other work items.

Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

2.5 A Electric Vehicle Strategic Plan
Development
EV1
thru
EV10
Develop a strategic plan based on
principles in Appendix C to guide
coordination of various work
items, including 2.1 A, C, I, J, and K,

2.2 C, D, and E, and 2.4 F. Align
with Reliability and Resiliency
Strategic Plan (1B and 1C)
Fully funded Under evaluation Policy guidelines for plan development to Council
December 5, 2022
P3: Building Awareness and Confidence
To achieve high participation in electrification programs and other emissions reduction efforts and continuing support for S/CAP climate action programs requires building community awareness and confidence through engagement, addressing concerns, and achieving program results.

Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

3.1 A Build awareness of the need
for climate action and the
benefits the City and its
utility can provide
N/A Achieve widespread awareness of
the need for climate action and the
City’s services and achievements,
including low electric rates. Use
partnerships and volunteers to
help deliver the message.

Fully staffed,
partially funded
Ongoing Sustainability hub and
various other engagement
efforts implemented.

3.1 B Drive community actions to
achieve S/CAP goals
N/A Run effective marketing and
outreach that drives community
action on S/CAP goals
Under evaluation Ongoing Marketing plan in
development

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Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

3.1 C S/CAP Survey Program N/A Continuing surveys of community sentiment and engagement to
guide decision making and track
certain key performance indicators
Under evaluation Under evaluation –
requires coordination
with other City surveys
Not started

3.1 D S/CAP Reporting N/A Ongoing reporting of S/CAP results, including key performance
indicators
Under evaluation Ongoing Annual reporting provided
in Earth Day report, to be
expanded to cover all
S/CAP KPIs

3.1 E Build confidence in the City’s
electric infrastructure
N/A Communicate actions the City is
taking to improve electric reliability
and grid capacity, to help residents
and businesses build resiliency,
and successes in these areas
Under evaluation Under evaluation –
requires coordination
with other City surveys
Not started

4. Additional Emissions Reductions

A variety of planning efforts are needed to achieve 80x30. Emissions reductions identified to date only achieve 71% from 1990 levels, so the City must identify additional reductions to achieve its 80x30 goals. The multi-family and commercial building sectors have the smallest contribution to the emissions reductions identified to-date, so this will be an area of focus where staff is likely to find the most additional emissions reductions. Note that carbon dioxide removal technologies are not included in this effort, these are part of a separate future study on the City’s carbon neutrality goal.

Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

4.A Multi-family and Commercial
End Use Study
C3,E9 Do end use study of commercial
and multi-family buildings to
identify potential building
electrification measures
Fully staffed,
consultant
funding needs
being evaluated
December 2024 Writing consultant RFP

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Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

4.B Idea generation and additional
research
C3,
M10
Consult community members and
experts (including Stanford) and
research new technologies to
identify other potential
approaches to reducing emissions
in Palo Alto
Staffing and
funding needs to
be evaluated
December 2024 Not started

4.C Additional Emissions Reduction
Project Prioritization
C3 Prioritize the most cost-effective
approaches to achieving the
additional emissions reduction
needed to achieve 80x30 in
establishment of next three-year
work plan
Staffing and
funding needs to
be evaluated
December 2025 Not started

5. Funding Needs and Funding Sources

A high-level assessment of resource needs and funding sources will be done by fall of 2023 to allow for Council discussions on potential funding sources in late 2023 and early 2024. The needs of low- and middle-income residents will be assessed as part of this effort. Full-scale implementation of high potential programs will cause significant reductions in gas utility sales, necessitating careful planning to manage contracting revenues and operational needs.

Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

5.A Resource Needs Assessment C4 Complete study of staffing and other resources needed for
programs and operations to
implement all 80x30 activities
Fully staffed,
consultant
funding needs
being evaluated
Dec 2023 Writing consultant RFP

5.B Funding Alternatives C5, M5 Complete study of funding alternatives for 80x30, taking into
account Federal policy such as the
Inflation Reduction Act.

Fully staffed,
consultant
funding needs
being evaluated
Dec 2023 Writing consultant RFP

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Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)

5.C Affordability Study C6,E5 Identify vulnerable populations who may need help electrifying
and subsidy needed
Fully staffed and
funded
Dec 2023 Consultant beginning work

5.D Gas Utility Financial and
Operating Plan
N/A Develop a financial and operating
plan for declining gas utility sales
that maintains safety and solvency
while providing affordable gas
service to remaining gas users
Staffing and
funding needs to
be evaluated
Dec 2024 Not started

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3. 2023-2025 Sustainability Section Work Plan: Creating a More Sustainable Natural Environment In Palo Alto, we have a Sustainability and Climate Action Plan (S/CAP) because we include sustainability areas that don’t necessarily have a direct impact on greenhouse gas reductions, but have critically important sustainability, public health and safety, regional, resource conservation, and equity benefits that contribute to overall climate action. The Sustainability area Key Actions were prioritized based on the co-benefits analysis conducted by AECOM.

Work Item
Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)

8.A Maximize Water Conservation and
Efficiency
W1 Maximize cost-effective water
conservation and efficiency through
incentives, outreach/education, and
other programs
Fully funded On-going This is an on-going effort

8.B Design and build a salt removal
facility for the Regional Water
Quality Control Plant
W2 Facility that will remove salt from the
recycled water produced at the RWQCP
resulting in an enhanced product
Negotiating with
Valley Water
and the City of
Mountain View
Bring to
Council for
approval by
2023
Design is 90% complete.

Council has not approved
construction of the facility

8.C Develop a “One Water” Portfolio
for Palo Alto
W3 Develop a “One Water” Portfolio that
includes stormwater, recycled water,
on-site reuse, conservation, and
groundwater
Fully funded August 2023 Study underway by staff
and consultant

8.D Develop a tool for dynamic water
planning in the future
W4 Excel-based tool for water planning Fully funded August 2023 Included as deliverable under One Water
consulting contract

8.E Complete the Sea Level Rise
Vulnerability Assessment
S1 Complete a Sea Level Rise Vulnerability
Assessment to identify risks and hazards
to the Palo Alto Baylands, City
infrastructure, and residential and
business property, considering high tide,
100-year coastal storm event scenarios
and rising shallow groundwater impacts
Fully funded Fall 2022 Completed in Fall 2022

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Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)

8.F Develop a Sea Level Rise
Adaptation Plan
S2 Develop a Sea Level Rise Adaptation
Plan with goals to 1) Preserve and
Expand Habitat, and 2) Protect City and
Community Assets, and Private Property
Partially funded
to develop the
plan, and
funding needed
for plan and
implementation
2024 Preparing a contract
amendment AECOM so
that we can move to the
second phase of the
project, which is to
develop a Sea Level Rise
Adaptation Plan over the
coming months with the
goal of bringing a plan to
Council in 2024

8.G Begin design process for a levee
projects
S3 Determine levee alignment and begin
design process for a levee project that
protects the Palo Alto community from
sea level rise, and incorporates other
related priorities including habitat
restoration, recreation, transportation,
City facilities, and community properties
Funded by US
Army Corps of
Engineers (50%
Fed) and Valley
Water / CA
Coastal
Commission
(50% Non-Fed)
*PA staff is
participating in
the analysis
2024 Levee alignment will be
determined by 2024

8.H Identify Protection Strategies from
Significant Flood Events at Newell
Road Bridge
S4 Complete Newell Road Bridge
improvements
Funded by
Caltrans / local
sponsor
(SFCJPA)
2024 Preparing construction
documents and initiating
right-of-way aquisition

8.I Identify Protection Strategies from
Significant Flood Events at Pope
Chaucer Bridge and Creek
S4 Complete Pope Chaucer Bridge and
Creek widening improvements
Applied for
grants and
secured partial
funding through
SFCJPA / partner
agencies
contributions
2025-2026 Analysing existing
conditions within Creek to
verify structural integrity

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Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)

8.J Identify Protection Strategies from
Significant Flood Events
S4 Working with San Francisquito Creek
Joint Powers Authority (SFCJPA) partner
agencies to identify strategies to protect
the community from flows that exceed
the 70-year + storm event
Part of SFCJPA
operating
budget – Palo
Alto contributes
1/5 of operating
budget
On-going This is an on-going
coordination effort
with Stanford (the entity
not the University)

8.K Implement Foothills Fire
Management Plan
S5 Implement the Foothills Fire
Management Plan to balance
conservation of natural resources with
reduction of fire hazards especially in
open space areas
Partially funded On-going This is an on-going effort

8.L Minimize Fire Hazards Through
Zoning
S6 Minimize fire hazards by maintaining
low density zoning in wildland fire
hazard areas and enforcing building
codes for fire resistant construction
Staff available On-going This is an on-going effort

8.M Collaborate on Reducing Wildfire
Hazards
S7 Coordinate with other Fire agencies
through the Santa Clara County Fire
Chiefs Association and CalFire
Staff available On-going This is an on-going effort

8.N Implement CAL FIRE Public
Education Programs
S8 Implement CAL FIRE recommended
programs in educating and involving the
local community to diminish potential
loss caused by wildfire and identify
prevention measures to reduce those
risks
Fully Funded On-going This is an on-going effort

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Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)

8.O Increase Palo Alto’s Tree Canopy
and establish a baseline and Key
Performance Indicator for carbon
storage of tree canopy
N1
N5
Develop programs to plant trees to
increase tree canopy – that will be
integrated with traditional tree planting
programs and Green Stormwater
Infrastructure programs – and provide
carbon sequestration, improve water
quality, capture stormwater when
feasible, and reduce the urban heat
island effect
Partially funded,
Staff available
as time permits
Establish
baseline by
2024
New canopy cover GIS
tool recently launched,
which will help establish a
baseline

8.P Ensure No Net Tree Canopy Loss
for all Projects
N2 Ensure no net tree canopy loss for all
Projects
Staff available On-going This is an on-going effort
to implement the updated
Tree Ordinance (effective
July 21, 2022)

8.Q Reduce Pesticide Use in Parks and
Open Space Preserves
N3 Continue to review the use of pesticides
in all parks and open space preserves to
identify opportunities to further reduce
and eliminate the use of pesticides
Staff available
as time permits
On-going This is an on-going effort

8.R Coordinate Implementation of City
Natural Environment-Related
Plans
N7 Coordinate implementation of the
Urban Forest Master Plan, Parks Master
Plan, Green Stormwater Infrastructure
Plan and other citywide planning efforts
through interdepartmental collaboration
Staff available
as time permits
On-going This is an on-going effort

8.S Support the Green Stormwater
Infrastructure (GSI) Plan and
incorporate GSI in Municipal
Projects
N10
N11
Establish policies and ordinance changes
as needed to support the Green
Stormwater Infrastructure Plan as
required due to Municipal Regional
Stormwater Permit
Staff available
as time permits;
Partially funded
through GSI
On-going This is an on-going effort
to achieve a 10% increase
in land area that uses
green stormwater
infrastructure to treat
urban water runoff

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Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)

8.T Encourage Food Waste Prevention
and Require Food Recovery from
Commercial Food Generators
ZW1 Encourage food waste prevention and
require edible food recovery for human
consumption from commercial food
generators
Staff and County
funded program
staff available;
Funded for FY
2023, may need
funding for FY
2024
On-going Began 1/1/2022 per
SB1383 requirements

8.U Promote Residential Food Waste
Reduction
ZW2 Create a new campaign to promote
residential food waste reduction
Existing
outreach
funding
Launch by July
2023
Campaign strategy in
development, for launch
by July 2023

8.V Champion Waste Prevention,
Reduction, Reusables, and the
Sharing Economy
ZW3 Promote adoption of a “Zero Waste
lifestyle”, stimulate value of reuse,
repair
Existing
outreach
funding for
initial
promotion of a
“Zero Waste
lifestyle”; may
need future
funding for
stimulating
reuse, repair
On-going This is an on-going effort

8.W Provide Waste Prevention
Technical Assistance to the
Commercial Sector
ZW4 Develop an outreach tool and technical
assistance to the commercial sector
Existing
outreach
funding
Launch in 2023 Outreach tool and
technical assistance in
development, for launch
in 2023

8.X Prioritize Domestic Processing of
Recyclable Materials
ZW5 Prioritize domestic processing of
recyclable materials
Request for
additional
$500,000
On-going Domestic processing for
Mixed Paper and Mixed
Rigid Plastics began April
2022.

Went to Council in
November 2022 to
request additional funding

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Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)

8.Y Eliminate Single-Use Disposable
Containers
ZW6 Eliminate single-use disposable
containers by expanding the Disposable
Foodware Ordinance
Funded for
Ordinance
Requirement,
need additional
funding for
infrastructure
and
implementation
of future
requirements
Launch in 2024 Strategy and timeline in
development, for launch
in 2024

8.Z Expand the Deconstruction and
Construction Materials
Management Ordinance
ZW7 Expand the Deconstruction and
Construction Materials Management
Ordinance
Additional staff
and funding
needed
Launch by
January 2026
Expand types of covered
projects or increase
diversion requirements,
collaborate with other
Departments; consider
including in next Reach
Code Cycle to be
implemented in January
2026

8.aa Implement Reach Code standard
for Low Carbon Construction
Materials
ZW8 Implement Reach Code standard for low
carbon construction materials
If approved,
additional staff
and funding
needed
Launch January
1, 2023
Reach Code going to
Council for approval in
October 2022. If
approved, will go into
effect January 1, 2023

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2023-2025 Sustainability Workplan.xlsx

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Appendix B: How Climate Actions were Prioritized
The chart below gives an overview of how various emissions reduction activities were prioritized based on various factors. Activities were divided up into four priority tiers:

A. Prioritize for immediate action
B. Prioritize in areas where grid modernization has been completed C. Requires additional study or stakeholder engagement to determine priority D. Prioritize only if resources are available
A fuller blue bubble denotes a program that ranks more favorably when considering S/CAP implementation efforts. For example, a program with a full blue bubble in the “Total emissions reduction potential” column has more emissions reduction potential than one with a partially filled bubble. See next page for more detail.

Activity
Cost effective
(per metric
ton basis)
Total emissions
reduction
potential
Minimizes
Electric Utility
Impacts
Policy leverage
– City ability to
impact
Funding
Source
Availability
Priority
Tier
Mobility – Bicycling /
Alternative Modes C
Visitor EV adoption D
New buildings/ADU A
Single-Family
Water Heating A
Space Heating (w/ A/C) B
Space Heating (w/o A/C) B
Other Building Equipment B
Electric Vehicles A
Multi-Family
Building retrofits (1) C
Electric Vehicles A
Non-Residential
Rooftop HVAC A
Other building equipment (2) C
Fleet Electrification D
Commuter EVs
Small/Med Business (1) B
Major Facilities (1) B

1. Tentative ranking based on some preliminary ideas that need more exploration, which will take staff time

2. Tentative conclusion based on initial impact analysis, needs more study Insights:
• Mobility and EVs are the most cost-effective actions and the City has significant policy leverage in the Mobility area. • The City has less policy leverage to drive EV adoption, but there are a few areas where it has potential policy leverage, such as increasing EV charger access.

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• Electrification of single-family building equipment is worth prioritizing under most criteria. Heat pump water heaters can be promoted citywide. Other equipment should be promoted primarily in neighborhoods with upgraded utility infrastructure.
• Commercial building rooftop packaged HVAC units are worth prioritizing and may have fewer electric utility impacts than other electrification measures.
• More study is needed to identify other viable building electrification actions in the commercial sector. • More study is also needed on multi-family building electrification.

How to Ratings were Determined:

- Rating, high (filled bubble) to low (empty bubble)

Cost effective (MT
CO2-e)3
Total emissions
reduction
potential**
Minimizes Electric
Utility Impacts
Policy leverage –
City ability to
impact
Funding Source
Availability*
Deep cost savings >25,000 MT/yr
No permit review,
does not impact
utilities
City policy has high
impact
Resources / staffing
available in existing
budget, no added
funds needed
Modest cost savings 15,000 – 25,000
MT/yr
Permit review, but
rare utility upgrades
Dedicated funding
source under City
control, sufficient
for pilot programs
Break even 10,000 – 15,000
MT/yr
Permit review,
causes some utility
upgrades

Lower cost
($0/MT -$200/MT)
5,000 – 10,000
MT/yr
Frequent utility
impacts, must
develop programs
to limit impact.

No dedicated
funding source for
S/CAP pilots, grants
may be available

High cost
(>$200/MT) Minimal potential
Utility upgrades
often needed,
cannot be avoided
Little or no ability to
impact
No dedicated
funding source for
S/CAP pilots
* It may not be possible to use the same funding source to achieve all goals using the same funding source. For example, Low Carbon Fuel Standard revenue might be available to fund residential EV programs or workplace charging programs, but not both.
** This represents the full potential contribution of this type of activity to achieving the 80x30 goals, not just the emissions reductions associated with the 2022-2024 work plan.

3 Metric tons (MT) of carbon-dioxide equivalent (CO2-e), a common measure of greenhouse gas emissions quantity.

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Key Actions by Cost per Metric Ton of Carbon Dioxide Equivalent Reduced4

4 Cost per metric ton shown as a range from a low-cost scenario to a high-cost scenario

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Total Citywide Emissions by Source (MT CO2-e)5

5 Metric tons (MT) of carbon-dioxide equivalent (CO2-e), a common measure of greenhouse gas emissions quantity.

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Appendix C: Policy Guidelines for Electric Vehicle Strategic Plan Development Work item 2.5A calls for the development of an electric vehicles strategic plan, which would guide implementation of several work items. The strategic plan would also relate to a reliability and resiliency strategic plan to be developed in parallel.

Objectives

1. Promote residential, workplace, and visitor electric vehicle adoption

2. Lower the cost and carbon emissions of EV charging as much as possible

3. Decrease the impact of electric vehicle charging on the local electric distribution system

4. Explore how electric vehicles could contribute to the efficient and reliable operation of the statewide and local electric system

5. Explore the use of electric vehicles for increased home resiliency

6. Evaluate the reliability and resiliency needs of an electrified transportation system and the City’s role in fulfilling those needs
Concepts to explore adding to Strategic Plan
• Scalable programs to provide charging for multi-family and income-qualified households • Scalable programs to provide workplace and visitor charging • The role of publicly-owned charging in providing multi-family, income-qualified, workplace, and visitor charging • How much high-speed charging is needed in Palo Alto and where it should be located • Business models to make commuter and visitor mid-day low-cost, low-carbon charging more attractive than overnight home charging
• New technologies such as vehicle to load, vehicle to home, and vehicle to grid and their roles in providing home resiliency and improving the efficiency and reliability of the statewide and local electric systems • Lower wattage chargers and charging behaviors
• Time of day pricing and other ways to encourage off-peak and mid-day charging • The role of smaller electric vehicles such as e-bikes and e-scooters in transportation emissions reduction • The role of regional partnerships in driving electric vehicle adoption for commuters and visitors

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Appendix D: Policy Guidelines for Reliability and Resiliency Strategic Plan Development Work item 1B calls for the development of a reliability and resiliency strategic plan, which would guide implementation of reliability and resiliency work items. This would be coordinated with development of an electric vehicle strategic plan.

Objectives

1. Maintain and improve electric system reliability

2. Improve utility outage communication

3. Prepare the electric system for increased penetration of solar, batteries, electric vehicles and chargers, electrified building equipment, and similar new technologies

4. Optimize the use of local grid capacity in a cost-effective way

5. Promote technologies and behaviors that contribute to the efficient and reliable operation of the statewide and local electric system
Concepts to explore adding to Strategic Plan
• Addressing utility workforce issues
• Replacing aging infrastructure as part of a grid modernization plan • Installing additional switching and other solutions to improve reliability and recovery from outages as part of a grid modernization effort
• Improving utility outage management system and communications protocols • Technologies like vehicle to load or vehicle to home for home resiliency • Equity in resiliency – how to provide resiliency to income-qualified residents • Neighborhood-level resiliency solutions such as microgrids and local utility-scale battery storage • Community emergency center resiliency
• Mobile battery strategies, such as large electric vehicles that could double as emergency resiliency solutions • Promoting low-wattage electrification solutions to reduce grid impacts of vehicle and building electrification • Time of day pricing and other ways to encourage shifting electric use to times of day with lower emissions, lower utility cost, and lower local grid impact
• Increasing transformer capacity to accommodate higher loads

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Appendix E: Index of Key Actions and the Work Items that Implement them Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 31 of 32 Key Action Title
Work
Item(s)
C1. Provide Building and
Transportation Emissions
Consultations for Residents
P2.1B
C2. Develop Major Employer Custom
Emissions Reduction Plans
P2.2C
C3. Study Additional Key Actions
Needed for 80 x 30
P4.A,
P4.B,
P4.C
C4. Study Staffing and Budgetary
Needs
P5.B
C5. Study Funding Alternatives P5.C
C6. Conduct an Electrification
Affordability Study
P5.D
C7. Study Carbon Neutrality Options
C8. Accelerate GHG reductions
through Mandates or Price Signals
P2.1K,
P2.2A,
P2.2B,
P2.2D
E1. Reduce GHG emissions in Single-
Family Appliances and Equipment
P2.1D,
P2.1E,
P2.1F,
P2.1G,
P2.1H
E2. Reduce GHG emissions in Non-
Residential Equipment
P2.2A,
P2.2B,
P2.2C
E3. Reduce Gas Use in Major Facilities P2.2C
E4. Reduce Natural Gas Use at City
facilities
P2.4A,
P2.4B,
P2.4C
E5. Support Income-Qualified
Residents and Vulnerable
Businesses with Electrification
P5.D,
P2.1D,
P2.1I
E6. Develop Electric Rate Options P1.D
Key Action Title
Work
Item(s)
E7. Use Codes and Ordinances to
Facilitate Electrification
P2.2A,
P2.2B
E8. Electric Grid Modernization Plan P1.A,
P1.B,
P1.C
E9. Additional Electrification
Opportunities in Commercial and
Multi-Family Buildings
P4.B
EV1. Raise Awareness of Alternative
Transportation Modes,
Micromobility, and EVs.

P2.1A,
P2.2D
EV2. Collaborate to Promote EV
Adoption Regionally
P2.2E
EV3. Promote EV Adoption and
Alternative Commutes for
Commuters
P2.2C,
P2.2D
EV4. Facilitate the Adoption of EVs, E-
bikes and other Light EVs.

P2.1A,
P2.1C,
P2.2D
EV5. Promote Alternative
Transportation Modes and
Infrastructure To Support Adoption
P2.1I,
P2.1J
EV6. Expand EV Charging Access for
Multi-Family Residents
P2.1J,
P2.1K
P2.4F
EV7. Improve EV Charging Access for
Income-Qualified residents
P2.1I,
P2.1J,
P2.1K
P2.4F
EV8. Ensure EV Charging Capacity
Supports EV Growth
P2.1K,
P2.2D,
P2.4C
P2.4F
Key Action Title
Work
Item(s)
EV9. Electrify Municipal Vehicle Fleet P2.4D,
P2.4E
EV10. Support Policy to Electrify Fleet
Vehicles
P2.2E
M1. Increase Active Transportation
and Transit for Local Work Trips
P2.3A
M2. Expand Availability of Transit and
Shared Mobility Services
P2.3D,
P2.3E
M3. Implement the Bicycle and
Pedestrian Transportation Plan
P2.3F,
P2.3G
M4. Improve Transportation Demand
Management for Employees and
Residents
P2.3H
M5. Implement Smart Parking
Infrastructure in Public Garages
and Parking Fees in Business
Districts
P5.C,
P2.3I,
P2.3J
M6. Study Land Use and
Transportation
M7. Continue to Implement the City’s
Housing Element
P2.3B,
P2.3C
M8. Improve Transit and Traffic Flow P2.3K
M9. Create Housing Density and Land
Use Mix that Supports Transit and
Non-SOV Transportation
P2.3B,
P2.3C
M10. Encourage Reductions in GHGs
and VMT
P4.A,
P4.C
W1. Maximize Water Conservation
and Efficiency

8.A
W2. Build a Salt Removal Facility 8.B
W3. Implement One Water Portfolio
Projects

8.C
W4. Develop a Dynamic Water
Planning Tool

8.D

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Work
Item(s)
S1. Complete a Sea Level Rise
Vulnerability Assessment

8.E
S2. Implement a Sea Level Rise
Adaptation Plan

8.F
S3. Begin Design Process for a Levee
Project

8.G
S4. Identify Protection Strategies from
Significant Flood Events

8.H, 8.I,

8.J
S5. Implement the Foothills Fire
Management Plan

8.K
S6. Minimize Fire Hazards Through
Zoning

8.L
S7. Collaborate on Reducing Wildfire
Hazards

8.M
S8. Implement CAL FIRE Public
Education Programs

8.N
N1. Increase Palo Alto's Tree Canopy 8.O
N2. Ensure No Net Tree Canopy Loss
for all Projects

8.P
N3. Reduce Pesticide Use in Parks and
Open Space Preserves

8.Q
N4. Enhance Pollinator Habitat
N5. Establish a Carbon Storage of Tree
Canopy Baseline and KPI

8.O
N6. Maximize Biodiversity and Soil
Health
N7. Coordinate Implementation of
City Natural Environment-Related
Plans

8.R
N8. Expand Water Efficient Landscape
Ordinance (WELO) Requirements
N9. Phase out Gas-Powered Lawn and
Garden Equipment
Key Action Title
Work
Item(s)
N10. Support the Green Stormwater
Infrastructure Plan

8.S
N11. Incorporate Green Stormwater
Infrastructure in Municipal Projects

8.S
ZW1. Encourage Food Waste
Prevention and Require Food
Recovery from Commercial Food
Generators

8.T
ZW2. Promote Residential Food Waste
Reduction

8.U
ZW3. Champion Waste Prevention,
Reduction, Reusables, and the
Sharing Economy

8.V
ZW4. Provide Waste Prevention
Technical Assistance to the
Commercial Sector

8.W
ZW5. Prioritize Domestic Processing of
Recyclable Materials

8.X
ZW6. Eliminate Single-Use Disposable
Containers

8.Y
ZW7. Expand the Deconstruction and
Construction Materials
Management Ordinance

8.Z
ZW8. Implement Reach Code standard
for Low Carbon Construction
Materials

8.aa

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2023 - 2024 Sustainability and Climate Change – Protection and Adaptation Work Plan Last Updated ________ Last Updated ________ Jan/Feb Mar/Apr May/June July/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/June July/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/June July/Aug Sep/Oct Nov/Dec P1.A Grid Modernization Study
P1.B Reliability and Resiliency Strategic Plan
Development
P1.C Reliability and Resiliency Strategic Plan
Implementation
P2.1 A Promote EV Adoption
P

2.1 B Emissions Reduction Advisory Services
P2.1 C Small electric vehicles (e.g. e bike) program
P2.1 D Heat Pump Water Heater Electrification Pilot
Program
P2.1 E Full-Scale Heat Pump Water Heater
Electrification Program
P2.1 F Electrification data collection program
P

2.1 G Pilot Programs for Modernized
Neighborhoods
P2.1 H Single-family Electrification Rebates
P

2.1 I Affordable Housing EV Charging and
Electrification Pilot
P2.1 J Multi-Family EV Charger Program
P

2.1 K Multi-Family and Affordable Housing EV
Charger Access Strategy
P2.2 A Rooftop Packaged Heating, Ventilation, and
Air Conditioning (HVAC) Pilot
P2.2 B Rooftop Packaged HVAC Advanced Pilot
Design
P2.2 C Major Employer Partnerships
P

2.2 D Commuter Transportation & EV Charging
Strategy
P2.2 E Regional and State Partnerships
P

2.3 A Transportation and Land Use Policies and
Programs
P2.3 B Housing Element Adoption
P

2.3 C Housing Element Implementation
P2.3 D Micro-mobility evaluations
P2.3 E On-demand transit pilot
P2.3 F Update Bicycle Plan
P2.3 G Vision Zero Program
P2.3 H Evaluate expansion of employer
transportation demand management (TDM)
P2.3 I Proposals for Managing Downtown Parking
Availability
Council
adoption
P2.3 J Implement Efficient Downtown Parking
Management
P2.3 K Traffic Signal Improvements & Transit Signal
Priority
P2.4 A Facility Electrification Assessment Plan
Continue ongoing transportation programs, traffic management, and partnerships and land use regulatory activity Adopt plan
Implementation of Housing Element programs as outlined in Housing Element and as funded via grants and annual budget requests Evaluate opportunities to pilot bike/scooter share and neighborhood mobility hub pilots to provide last-mile connections as staff time becomes available Launch Pilot Pilot program in operation

2.2. Non-Residential
Emissions Reduction
Programs
Multi-Family
Residential
Single-Family
Residential
All Residential

2.1 Residential Emissions Reduction Programs
Timeline to be determined, depends on staffing and funding availability Evaluate possible alternatives to expand TDM ordinance requirements and/or voluntary TDM services (e.g. expanding the Transportation Management Association) as staff time becomes available Complete evaluation of potentially scaalable strategies for multi-family and affordable housing EV charging and/or building electrification, including evaluating the role of publicly-owned EV charging Achieve installations at four to five sites through existing rooftop HVAC pilot program P
rogram design and approvals Assuming grid modernization has made enough progress, launch program(s) Cost-effectiveness studies to determine rebate amounts, software configuration, launch preparation Rebate launch
C
omplete pilot design, hire consultant
Ongoing data collection
Ongoing Ongoing
Get phone advisory services up and running
Determine work plan for online services, begin implementation Complete evaluation P rogram implmentation? To be determined depending on results of program evaluation and staffing and funding analysis.

Ongoing program activity with the goal of providing EV charging in buildings representing 10% of multi-family units in Palo Alto by 2025 Complete evaluation of potentially scaalable strategies for multi-family and affordable housing EV charging and/or building electrification, including evaluating the role of publicly-owned EV charging+L20:U20
Ongoing program activity with the goal of providing EV charging in buildings representing 10% of multi-family units in Palo Alto by 2025 20252023 2024
Complete study, design, and bring contractor on board
following certification of environmental review Construction to increase capacity D
evelop strategic plan
Ongoing
Priority 1. Grid
Modernization

2.3 Citywide Mobility
Staff and Consultant Work
ation
Work to achieve program goals
Do program evaluation, assuming advanced pilot
program goals are on track to be met. Transition to full scale program Finalize S/CAP and 2021 GHG
Inventory
Finalize CEQA Documents S /CAP Implementation
Complete 2022 GHG Inventory
S/CAP Implementation
Complete 2023 GHG Inventory
S/CAP Implementation
Start Work Plan Update
Finalizing Facility Electrification Assessment Plan
Implementation based on timelines in Reliability and Resiliency Strategic Plan Implement pilot project
Complete evaluation and develop recommendations for future programs Implement any adopted commute or EV charging programs Develop work plan and identify promising partnerships Continued participation in chosen partnerships, exploration of new partnerships Continued participation in chosen partnerships, exploration of new partnerships Develop proposal for an advanced pilot program and/or mandate and present to Council Launch program and/or mandate if approved Ongoing program management, if program is approved Develop custom ermissions reduction and sustainability partnership with at least one major employer. Develop electrification pilots with City facilities and PAUSD Develop additional employer partnerships D evelop additional employer partnerships Hire parking management consultant Ongoing program management Climate Change (Buildings, Mobility, EVs)
Priority 2: Launch Programs
Hire consultant, kick off study Study completion and plan adoption Plan implementation Maintain and modernize current traffic signals and central management systems. Use technology to improve traffic operations and safety. Work with transit providers on transit signal priority where feasible.

Ongoing program operation
Get program up and running by December 2023 Ongoing data collection

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P2.4 B Facility Electrification Assessment
Implementation
P2.4 C Electrify Equipment at City Facilities during
Routine Replacement
P2.4 D Electrify City Vehicle Fleet
P2.4 E Build City Fleet and Employee Charging
Infrastructure
P2.4 F Publicly-owned charger strategic plan
P2.5A Electric Vehicle Strategic Plan Development
P3.1 A Build awareness of the need for climate
action
P3.1 B Drive community actions to achieve S/CAP
goals
P3.1 C S/CAP Survey Program
P3.1 D S/CAP Reporting CDP Report CDP Report CDP Report P3.1 E Build confidence in the City’s electric
infrastructure
P4 A Multi-family and Commerical End Use Study
P4 B Idea generation and additional research
P4 C Additional Emissions Reduction Project
Prioritization
P5 A Resource Needs Assessment
P5 B. Funding Alternatives
P5 C. Affordability Study
P5 D. Gas Utility Financial and Operating Plan

8.A Maximize Water Conservation and Efficiency

8.B Design and build a salt removal facility for the
Regional Water Quality Control Plant

8.C Develop a “One Water” Portfolio for Palo Alto

8.D Develop a tool for dynamic water planning in the
future

8.E Complete the Sea Level Rise Vulnerability
Assessment Completed

8.F Develop a Sea Level Rise Adaptation Plan

8.G Begin design process for a levee projects

8.H Identify Protection Strategies from Significant
Flood Events at Newell Road Bridge

8.I Identify Protection Strategies from Significant
Flood Events at Pope Chaucer Bridge and Creek

8.J Identify Protection Strategies from Significant
Flood Events

8.K Implement Foothills Fire Management Plan

8.L Minimize Fire Hazards Through Zoning

8.M Collaborate on Reducing Wildfire Hazards

8.N Implement CAL FIRE Public Education Programs

8.O Increase Palo Alto’s Tree Canopy and establish a
baseline and Key Performance Indicator for carbon
storage of tree canopy

8.P Ensure No Net Tree Canopy Loss for all Projects

8.Q Reduce Pesticide Use in Parks and Open Space
Preserves
Develop programs to plant trees to increase tree canopy – that will be integrated with traditional tree planting programs and Green Stormwater Infrastructure programs – and provide carbon sequestration, improve water quality, capture stormwater when feasible, and reduce the urban heat island effect
Establish baseline and Key Performance Indicator for carbon storage of tree canopy; implement programs to increase tree canopy On-going implementation of programs to increase tree canopy On-going effort to implement the updated Tree Ordinance (effective July 21, 2022) On-going effort to review the use of pesticides in all parks and open space preserves to identify opportunities to further reduce and eliminate the use of pesticides On-going work with San Francisquito Creek Joint Powers Authority (SFCJPA) partner agencies to identify strategies to protect the community from flows that exceed the 70-year + storm event On-going implementation of the Foothills Fire Management Plan to balance conservation of natural resources with reduction of fire hazards especially in open space areas Ongoing work to minimize fire hazards by maintaining low density zoning in wildland fire hazard areas and enforcing building codes for fire resistant construction On-going coordinatation with other Fire agencies through the Santa Clara County Fire Chiefs Association and CalFire On-gong implementation of CAL FIRE recommended programs in educating and involving the local community to diminish potential loss caused by wildfire and identify prevention measures to reduce those risks Preparing construction documents and initiating right-of-way aquisition Construction of Newell Road Bridge improvements Analysing existing conditions within Creek to verify structural integrity Prepare construction documents Construction of Pope Chaucer Bridge and Creek widening improvement Maximize cost-effective water conservation and efficiency through incentives, outreach/education, and other programs Design is 90% complete. Bring to Council for approval of construction of the facility Study underway by staff and consultant Implementation of a “One Water” Portfolio that includes stormwater, recycled water, on-site reuse, conservation, and groundwater Included as deliverable under One Water consulting contract Develop a Sea Level Rise (SLR) Adaptation Plan CEQA Review of Sea Level Rise Adaptation Plan Bring SLR Adaptation Plan to Council for Approval Implement Sea Level Rise Adaptation Plan Explore Public Charging Pilot Develop publicly-owned charger strategic plan Determine levee alignment for a levee project that protects the Palo Alto community from sea level rise, and incorporates other related priorities including habitat restoration, recreation, transportation, City facilities, and community properties Begin design process Complete multi-family and non-residential end use survey to identify promising emissions reduction opportunities, develop recommendations based on survey Continuing Council discussions of potential funding options Ongoing engagement, including Sustainability Newsletter, Climate Action Blog, Social Media, Sustainability Hub, Electrification Portal, Website Updates, Utility Bill Inserts, Workshops, webinars, and departmental collaboration Ongoing engagement, including Sustainability Newsletter, Climate Action Blog, Social Media, Sustainability Hub, Electrification Portal, Website Updates, Utility Bill Inserts, Workshops, webinars, and departmental collaboration On-going
On-going marketing On-going Marketing
Develop Surveys Conduct Surveys
On-going Marketing
Conduct Surveys
Seek ideas for emissions reductions from community, experts.

Monitor emerging technologies.

Evaluate new programs based on findings of studies
Study those ideas and technologies with highest potential Building City Fleet Infrastructure is on-going, assessing Employee Charging Infrastructure On-going
On-going
On-going
On-going
On-going
On-going On-going
On-going
On-going
Natural Environment
Climate Adaptation and Sea
Level Rise
Water

2.4 City Facilities and
Fleet
Sustainability and Climate Action Plan (S/CAP) and Climate Change - Protection and Adapta Sustainability
Priority 4. Studies and
Analysis

Priority 5. Funding Needs
and Funding Sources
Develop financial and operating plan for contracting gas utility Implement any follow-up actions from prior year studies Implement any follow-up actions from prior year studies

2.5 EV Strategic Plan Develop EV Strategic Plan to coordinate efforts on various EV work items Earth Day Report Earth Day Report Earth Day Report
Priority 3: Build Confidence
and Awareness
Complete RFP for consultant to do end use survey.

Summarize resource needs for a selection of pilots, advanced pilots, full-scale programs + commercial end-use research program Study funding options available to fund programs evaluated in work item 4.B for most promising electrification programs, present findings to Council.

Complete affordability study to inform funding needs and program design

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8.R Coordinate Implementation of City Natural
Environment-Related Plans

8.S Support the Green Stormwater Infrastructure
(GSI) Plan and incorporate GSI in Municipal Projects

8.T Encourage Food Waste Prevention and Require
Food Recovery from Commercial Food Generators

8.U Promote Residential Food Waste Reduction
8 .V Champion Waste Prevention, Reduction,
Reusables, and the Sharing Economy

8.W Provide Waste Prevention Technical Assistance
to the Commercial Sector

8.X Prioritize Domestic Processing of Recyclable
Materials

8.Y Eliminate Single-Use Disposable Containers
8 .Z Expand the Deconstruction and Construction
Materials Management Ordinance

8.aa Implement Reach Code standard for Low Carbon
Construction Materials
Council Study
Session on
S/CAP Progress
Report
Council Study
Session on
S/CAP Progress
Report
Council Approval of Sea Level
Rise Adaptation Plan
Council certification of CEQA
and adoption of S/CAP, Council
Meeting on Earth Day Report
CEQA Public Review S/CAP Implementation Resources, Updates, Outreach, and Webinars
Cross-promotional efforts with external partners and
COPA departments (e.g. Library)
Cross-promotional efforts with external partners and
COPA departments (e.g. Library)
Cross-promotional efforts with external partners and
COPA departments (e.g. Library)
On-going effort to encourage food waste prevention and require edible food recovery for human consumption from commercial food generators. Began 1/1/2022 per SB1383 requirements. May need funding for FY 2024 Campaign strategy in development Implement campaign to promote residential food waste reduction On-going effort to promote adoption of a “Zero Waste lifestyle”and stimulate value of reuse, repair. On-going effort to promote adoption of a “Zero Waste lifestyle”and stimulate value of reuse, repair. May need funding for stimulating reuse, repair outreach D
evelop an outreach tool and technical assistance to the commercial sector Implement outreach tool and technical assistance to the commercial sector On-going effort to prioritize domestic processing of recyclable materials. Domestic processing for Mixed Paper and Mixed Rigid Plastics began April 2022.

Developing strategy and timeline to eliminate single-use disposable containers by expanding the Disposable Foodware Ordinance Implement the expanded Disposable Foodware Ordinance Implement Reach Code standard for low carbon construction materials (pending Council approval in October 2022) Expand types of covered projects or increase diversion requirements, collaborate with other Departments; consider including in next Reach Code Cycle to be implemented in January 2026Determine the most effective way of expanding the Deconstruction and Construction Materials Management Ordinance
On-going effort to coordinate implementation of the Urban Forest Master Plan, Parks Master Plan, Green Stormwater Infrastructure Plan and other citywide planning efforts through interdepartmental collaboration O
n-going effort to achieve a 10% increase in land area that uses green stormwater infrastructure to treat urban water runoff Zero Waste

COUNCIL AND

COMMISSION MEETINGS

COMMUNITY

ENGAGEMENT
S/CAP Implementation Resources, Updates, Outreach, and Webinars S/CAP Implementation Resources, Updates, Outreach, and Webinars

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Background on Sustainability and Climate Action Plan (S/CAP) Development • April 2016: City Council adopted the ambitious goal of reducing GHG emissions to 80 percent below 1990 levels by 20301 (the “80 x 30” goal) - 20 years ahead of the State of California 80 x 50 target, and an interim step towards California’s new statewide goal of achieving carbon neutrality by 20452.
• November 2016: the Council adopted the S/CAP Framework3, which has served as the road map for achieving Palo Alto’s sustainability goals.
• December 2017: Council accepted the 2018-2020 Sustainability Implementation Plan “Key Actions” as a summary of the City’s work program4.
• June 2020: The City launched an S/CAP update to determine the goals and key actions needed to meet its sustainability goals, including the 80 x 30 goal.5 • April 2021: Staff presented a preliminary impact analysis and Council directed the Mayor to form an S/CAP Ad Hoc Committee.6
• August 2021 to April 2022: The S/CAP Committee held several public meetings with City staff.7
• November 17, 2021 : The S/CAP Ad Hoc Committee held the first meeting of its S/CAP Working Group, which assembled knowledgeable members of the community to consult with Council members and City staff on S/CAP implementation priorities. • December 13, 2021: Staff presented a Progress Report on the Sustainability and Climate Action Plan Update and S/CAP Ad Hoc Committee Work8 to Council. • March 7, 2022: Council and the Utilities Advisory Commission (UAC) held a joint study session9 to discuss sustainability and utility related items. 1 https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=3534&TargetID=268 2 In September 2018, Governor Brown signed California Executive Order B-55-18, setting the goal of achieving carbon neutrality as soon as possible, and no later than 2045. The state is to maintain net negative net emissions after 2045, meaning that GHG sinks must exceed GHG sources. The Executive Order explains that the carbon neutrality goal is layered on top of the state’s existing commitments to reduce greenhouse gas emissions 40% below 1990 levels by 2030 (as codified in SB 32), and 80% below 1990 levels by 2050. 3 https://www.cityofpaloalto.org/civicax/filebank/documents/60858 4 https://www.cityofpaloalto.org/civicax/filebank/documents/63141 5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2020/id-11404-climate_sustainability-and-climate-action- plan.pdf?t=59513.75
6 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12009.pdf
7 https://www.cityofpaloalto.org/Departments/City-Clerk/City-Council-Committees/Sustainability-and- Climate-Action-Plan-Ad-Hoc-Committee
8 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/2021/id.-13765-s-cap-update.pdf
9 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2022/20220307/20220307pccsmamendedfinal-linked.pdf

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• April 11, 2022: Staff presented the Earth Day Report10 to Council on April 11, 2022. The Earth Day Report described the work of the S/CAP Ad Hoc Working Group teams. • June 14, 2022: The S/CAP Ad Hoc Working Group Teams held a public meeting to discuss their progress on three areas that would advance residential building electrification goals:
• Engagement. The work of this team included fine -tuning messaging on residential building electrification and developing a strategy and timeline for engagement. • Technology. The work of this team included reviewing current and emerging technologies and their feasibility for meeting the demands of a typical home and developing a strategy.

The team also considered the influence of electrification technologies that are implemented on the electrical grid improvements that are needed. • Finance. The work of this team includ ed prioritizing the most feasible funding strategies and developing a strategy for financing S/CAP Implementation.

The working group teams also discussed an outline of a proposed Advanced Heat Pump Water Heater Pilot Program at the June 14 meeting. They agreed to have staff develop the outline into a more defined proposal.
• September 27 and October 3, 2022: Staff and the S/CAP Committee recommended, and Council accepted, the S/CAP Goals and Key Actions that would be used for environmental review. Staff and the S/CAP Committee recommended the creation of an Advanced Heat Pump Water Heater Pilot program and Council took several actions to enable the program to be launched.11

10 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/2022/id.-14174-earth-day-report-2022-edr22.pdf 11 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=79

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City of Palo Alto (ID # 14633)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Information Reports City of Palo Alto Page 1
Title: Annual Status Report on the Developer Impact Fees Schedule as of June 30, 2022
From: City Manager
Lead Department: Administrative Services
Recommendation
This is an information report; no action is required.

Discussion
The Annual Status Report on Development Impact Fees provides specific information about development impact fees imposed by the City. The schedule prepared in accordance with Government Code Section 66006 (AB1600) must be made available to the public at least 15 days before the Counci l meeting at which it is considered and within 180 days of the close of the fiscal year. Since the report is scheduled on the City Council Agenda of January 23, 2023, it is being included as an information report this December to allow time for public noti ce in excess of the minimum 15 -day advanced posting requirement. Additional information will be available in the January 23, 2023 report.

Stakeholder Engagement
This report has been prepared by the Accounting Division and reviewed by partner departments including the City Attorney’s Office, and the Planning and Development Services Department.

Resource Impact
This is an Informational Report, so no actions or adjustments are needed at this time.

Environmental Review
This is not a project for purposes of the California Environmental Quality Act (CEQA).

Attachments:
• Attachment11.a: Attachment A: Development Impact Fees FY22 11 Packet Pg. 321
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2022
Stanford Research Park/ San Antonio/West
FUND El Camino Fund Bayshore Fund
Purpose and Authority Traffic impact fees imposed on new Traffic impact fees imposed on new for Collection nonresidential development in the nonresidential development in the Stanford Research Park/El Camino San Antonio/West Bayshore Areas Real CS zone to fund improvements to fund capacity improvements at at eight identified intersections. four identified intersections.

PAMC Ch. 16.45, PAMC Ch. 16.46
Amount of the Fee City ceased collecting effective FY 2020City ceased collecting effective FY 2020 Fund Balance July 1, 2021 $3,519,739 $434,996
Activity in 2021-22
Revenues
Interest Earnings 33,656 6,877
Unrealized Gain/(Loss) Investments (206,212) (34,466)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues ($172,556) ($27,588)

Expenditures
Inter-Agency Expense (2,200,000) - ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures ($2,200,000) - ------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2022 $1,147,183 $407,408
Reserves
Other Commitments/Appropriations - - ----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - - ----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $1,147,183 $407,408
USE OF FEES: USE OF FEES:

In FY 2020, City ceased collecting the Stanford
Research / El Camino Real CS Zone fee established
in 1989.

In FY 2022, $2.2M expense to fund Sharing
Agreement between the City and the County of
Santa Clara for improvements of Mill Road
intersections at both Hanover Street and El Camino
Real (CMR 13439).

No expenditures have been made for this fund in
Fiscal Year 2022. In FY 2020, City ceased collecting the San Antonio/West Bayshore area fee established in
1986.

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Commercial Housing University Avenue Parking
FUND Impact Fee Fund In-Lieu Fund
Purpose and Authority Fees imposed on commercial and industrial Fees collected from non-residential for Collection development to offset the demand that development within the University Ave. new jobs create for low and moderate- Parking Assessment District in lieu of income housing in the City providing the required number of parking spaces.

PAMC Ch.16.65 PAMC Ch 16.57
Amount of the Fee
Hotel / Retail / Other Non Residential:
$23.11 per sq. ft.

Office/R&D: $39.70 per sq. ft. $115,404.00 per space
Fund Balance July 1, 2021 $25,967,219 $6,424,611
Activity in 2021-22
Revenues
Fees Collected 1,428,224
Interest Earnings 54,217 101,582
Unrealized Gain/(Loss) Investments (300,408) (507,159)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues 1,182,033 (405,577)
Expenditures
Salaries and Benefit (34,894) -
Liability Insurance (855) -
----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures (35,749) -
----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $27,113,503 $6,019,034
Reserves
Other Commitments/Appropriations - -
Reserve for Notes Receivable includes: (23,629,563)
$1,290,000 for 2811 Alma
$4,137,254 for 801 Alma
$7,700,000 for Bueva Vista Mobile Home Park
$10,502,309 Wilton Court -
Reserve for Reappropriations (1,167,000) -
----------------------------------------------------------- -------------------------------------------------------------- Total Reserves (24,796,563) -
----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $2,316,940 $6,019,034
USE OF FEES:

Expenditures in Fiscal Year 2022 are $35K
for salaries and benefits. Reserve for
Reappropriaton is for Affordable Housing
Loan Agreement: 3705 El Camino Real
(Wilton Court).

This fund is not subject to AB1600 requirements and is
listed only for information purposes.

USE OF FEES:

No expenditures have been made from this fund in
Fiscal Year 2022.

FUTURE USE OF FEES:
$5.5M programmed in FY 2023 for New Downtown
Parking Garage Project (PE-15007) as part of the
2023-2027 Capital Improvement Plan (CIP).

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Residential & Non-Residential Residential & Non-Residential Community Facilities Community Facilities
FUND Parks Community Centers
Purpose and Authority Fees imposed on new residential and Fees imposed on new residential and for Collection non-residential development approved non-residential development approved after Jan 28, 2002 for Parks. after Jan 28, 2002 for Community Centers.

PAMC Ch. 16.58 PAMC Ch. 16.58
Amount of the Fee Residential: Single family $57,420 per unit. (ADUs under 750 sq ft exempt)
Residential: Single family $4438 unit.
(ADUs under 750 sq ft exempt)
Nonresidential: Commercial/Industrial
$16,837 per net new 1,000 sq ft;
Hotel/Motel $2,866 per 1,000 sq ft.

Nonresidential: Commercial/industrial $1301
per 1,000 sq ft; Hotel/Motel $222 per 1,000
sq ft.

Fund Balance July 1, 2021 $3,766,481 $751,143
Activity in 2021-22
Revenues
Fees Collected 311,065 51,809
Interest Earnings 57,233 12,321
Unrealized Gain/(Loss) Investments (305,444) (76,080)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues $62,854 ($11,950)
Operating Transfer to Capital Projects Fund (18,800) - ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures ($18,800) -
----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $3,810,535 $739,193
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - -
----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $3,810,535 $739,193
USE OF FEES: USE OF FEES:

Budget transfer in FY 2022 was made to Capital
Project fund for PG-19000-Park Restroom
Installation $13,300 and PG-18001-Dog Park
Installation and Renovation for $5,500.

FUTURE USE OF FEES:

Budgeted as part of FY23-27 CIP: PE-17005
Boulware Park $400k in FY23; PG-18001 Dog Parks
$145k in FY23, $150k in FY24 & FY26; PG-19000
Park Restroom Installation $337k in FY23, $350k in
FY24 & FY26; PE-08001 Rinconada Park
Improvements $400k in FY23; PF-23001 Roth
Building Rehabilitation $350k in FY23.

No expenditure of funds have been made from this
Fund in Fiscal Year 2022.

FUTURE USE OF FEES:

Budgeted as part of FY23-27 CIP: $1.65M shifted from
PE-08001 Rinconada Park Improvements to PF-23001
Roth Building Rehabilitation in FY23.

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Residential & Non-Residential
Community Facilities Residential Housing
FUND Libraries In-Lieu Fund
Purpose and Authority
for Collection
Fees imposed on new residential and non-
residentual development approved after January
28, 2002 for Libraries.

Fees collected from ownership residential
developments of three or more units (including mixed
used with ownership in housing) in-lieu of providing
the required below-market rate units(s) to low and
moderate income households.

PAMC Ch. 16.58 PAMC Chapter 16.65
Amount of the Fee Residential: Single family $2,645 per unit; Multi-family $1,956 per unit
(ADUs under 750 sq ft exempt)
Single family $85.07 per sq. ft. Single family
detached; $56.72 per sq. ft. single family
attached. Multi Family $56.72 per sq. ft.
condos.

Nonresidential: Commercial/industrial $776
per net new 1,000 sq ft.

Hotel/Motel $132 per net new 1,000 sq ft.

Fund Balance July 1, 2021 $971,303 $29,738,425
Activity in 2021-22
Revenues
Fees Collected 25,718 138,339
Property Rental 700
Interest Earnings 13,510 122,145
Unrealized Gain/(Loss) Investments (79,438) (497,098) ----------------------------------------------------------- -------------------------------------------------------------- Total Revenues ($40,210) ($235,914)
Expenditures
Salaries and Benefits - (34,894)
Liability Insurance - (855)
----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures - ($35,749)
----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $931,093 $29,466,762
Reserves
Other Commitments/Appropriations - -
Reserve for Encumbrances - (178,090)
Reserve for Reappropriations - (3,000,000)
Reserve for Notes Receivable includes: - (23,810,893) $375,000 for 3053 Emerson
$3,504,850 for Tree House Apts.
$747,734 for Sheridan Apts.
$2,285,026 for 801 Alma
$901,201 for Palo Alto Housing Project
$593,952 for 2811-2825 Alma St.
$203,561 for Colorado Park Housing
$149,968 for El Dorado Palace
$6,800,000 for Buena Vista Mobile Home Park
$8,249,601 for Wilton Ct.
----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - (26,988,983)
----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $931,093 $2,477,779
USE OF FEES: USE OF FEES:

No expenditure of funds have been made from this
Fund in Fiscal Year 2022.

FUTURE USE OF FEES:

Budgeted as part of FY23-27 CIP: LB-21000 Library
Automated Material Handling $540k in FY23; PF-
23001 Roth Building Rehabilitation $300k in FY23.

Expenditures in Fiscal Year 2022 were $36K for
salaries and benefits. Reserve for Reappropriatons is
for Affordable Housing Project: 231 Grant Avenue
Affordable Housing Project.

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Charleston-Arastradero Corridor
FUND Pedestrian and Bicyclist Safety Citywide Transportation Purpose and Authority Transportation impact fees imposed for Collection on new development in all parts of the
City to fund congestion reduction
projects.

PAMC Ch. 16.59
Amount of the Fee
Fees collected from new development and
re-development within the Charleston-
Arastradero Corridor to provide for pedest-
rian and bicyclist safety improvements.

PAMC Ch. 16.60
Residential: $1,480 per residential unit
Commercial: $0.43 per sq ft (ADUs
exempt)
$8,572 each; per net new PM peak hour trip
Fund Balance July 1, 2021 $37,124 $2,281,870
Activity in 2021-22
Revenues
Fees Collected - 252,428
Interest Earnings 588 35,431
Unrealized Gain/(Loss) Investments (2,808) (175,459)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues ($2,220) $112,400
Expenditures
Operating Transfer to Capital Projects Fund - (395,000) ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures - ($395,000)
----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $34,904 $1,999,270
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - -
----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $34,904 $1,999,270
USE OF FEES: USE OF FEES:

No expenses were been made from this fund in
Fiscal Year 2022.

Budget transfers of $395K to Capital Project Fund in
Fiscal Year 2022 was made for Traffic Signal and
Intelligent Transporation (PL-05030).

FUTURE USE OF FEES:

Budgeted as part of the FY23-27 CIP: PL-05030 Traffic
Signal and Intelligent Transportation System Upgrades
$395k annually

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FUND New Public Safety Facilities General Government Facilities Purpose and Authority Fees imposed on residential and Fees imposed on residential and non- for Collection non-residential development to fund residential development to fund facilities police and fire facilities (including fire associated with municipal administration. apparatus and vehicles) PAMH Ch. 16.58
PAMC Ch. 16.58
Amount of the Fee Residential: Single family $1,175 per unit; Multi-family $940 per unit
Residential: Single family $1,481 per unit;
Multi-family $1,184 per unit
(ADUs under 750 sq ft exempt)
Nonresidential: Commercial $657 per
1,000 sq ft. or fraction thereof; Industrial
$220 per 1,000 sq. ft. or fraction thereof;
Office/Institutional $876 per 1,000 sq ft or
fraction thereof.

Nonresidential: Commercial $826 per 1,000
sq ft. or fraction thereof; Industrial $275 per
1,000 sq. ft. or fraction thereof;
Office/Institutional $1,104 per 1,000 sq ft or
fraction thereof.

Fund Balance July 1, 2021 $44,123 $57,053
Activity in 2021-22
Revenues
Fees Collected 50,371 63,428
Interest Earnings 1,302 1,663
Unrealized Gain/(Loss) Investments (8,026) (10,214)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues $43,647 $54,877
Expenditures - -
----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures - -
----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $87,770 $111,930
Reserves -
Other Commitments/Appropriations - -
----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - -
----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $87,770 $111,930
USE OF FEES: USE OF FEES:

No expenditure of funds have been made from this
Fund in Fiscal Year 2022.

No expenditure of funds have been made from this
Fund in Fiscal Year 2022.

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Residential Housing
FUND Impact Fee Fund
Purpose and Authority for clollection Fees imposed on all rental residential developments (including mixed use with rental
housing) to offset the demand that the new market-
rate rental housing creates for low income and
moderate-income housing in the City.

PAMC Ch. 16.65
Amount of the Fee Single and Multi-Family: $22.69 per sq. ft. apartment (rentals)
Fund Balance July 1, 2021 $894,756
Activity in 2021-22
Revenues
Fees Collected 223,078
Interest Earnings 15,727
Unrealized Gain/(Loss) Investments (75,945)
----------------------------------------------------------- Total Revenues $162,860
Expenditures -
----------------------------------------------------------- Total Expenditures -
----------------------------------------------------------- Ending Balance June 30, 2022 $1,057,616
Reserves
Other Commitments/Appropriations -
Reserve for Reappropriations (600,000)
----------------------------------------------------------- Total Reserves ($600,000)
----------------------------------------------------------- Net Funds Available $457,616
USE OF FEES:

No expenditure of funds have been made from this
Fund in Fiscal Year 2022. Reseve for
Reappropriations is for Affordable Housing Loan
Agreement: 3705 El Camino Real (Wilton Court)

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(INFORMATION ONLY)
FUND Public Art Fund Parkland Dedication
Purpose and Authority for collection Fees imposed on new commercial develoments (including mixed use projects), including new
construction, remodels, additions and
reconstruction that (i) have a floor area of 10,000
sq. ft. or more, and (ii) have a construction value of
$200,000, or more, exclusive of costs for
architecture, design, engineering, and required
studies; and all new residential projects of five or
more units to fund public art for private
developments.

Fees on parkland dedication imposed on new
residential and non-residential development.

Govt Code Sec. 66477 (Quimby Act)
PAMC Ch. 16.61
Amount of the Fee 1% of first $120.25 million construction valuation and 0.9% of construction
valuation for valuation in excess of
$120.25 million
Single Family: $69,483.47 per unit; Multi-
Family: $47,892.56 per unit. This applies
only to residential projects that require a
subdivision or pacel map. Land dedication is
required for subdivisions resulting in more
than 50 parcels. Parkland Dedication Fee -
Land: Single Family: 531 sq. ft, per unit;
Multi-Family: 366 sq. ft. per unit. When
parkland dedication applies, park impact fees
do not apply.

Fund Balance July 1, 2021 $2,009,290 $5,915,748
Activity in 2021-22
Revenues
Fees Collected 144,400 591,289
Interest Earnings 32,355 74,277
Unrealized Gain/(Loss) Investments (158,436) (401,919) Operating Transfer from General Fund 170,000
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues $188,319 $263,647
Expenditures
Salaries and benefits (227,003) -
Other Contract Services (42,080) -
Liability Insurance (2,816) -
Operating Transfer to Capital Projects Fund - (2,400,000) ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures ($271,899) ($2,400,000)
--------------------------------------------------------------------- ------------------------------------------------------------------------- Ending Balance June 30, 2022 $1,925,710 $3,779,395
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - -
----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $1,925,710 $3,779,395
This fund is not subject to AB1600 requirements
and is listed only for information purposes.

This fund is not subject to AB1600 requirements and is
listed only for information purposes.

FUTURE USE OF FEES:

Budgeted as part of the FY23-27 CIP:

PE-17005 Boulware Park $1.1M in FY23; PE-08001
Rinconada Park Improvements $1.65M in FY23;
PE-18006 Byxbee Park Completion $450k in FY24.

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(INFORMATION ONLY)
FUND Water and Wastewater Collection
Purpose and Authority Capacity fees charged to developers that for Collection are adding load to the water and sewer
systems effective July 1, 2005.

California Government Code Sect 66000
Amount of the Fee Water Capacity Fees: 5/8 in., 3/4 in E- Meter. $3,750, 1 in. E-Meter $6,250, 1 1/2
in. E-Meter $18,850, 2 in. E-Meter
$31,250, 4 in. Compound Meter by est.
$125/FU (min. 5,000 FU) , 6 in. Compound
Meter by est. $125/FU (min. 7,000 FU)
Fire Service Capacity Fees: 2 in. $750, 4
in. $8,425, 6 in. $18,250, 8 in. $30,950,
10in. $48,110
Sewer Capacity Charges: 4 in. connection
with 5/8 in Water Meter (WM) $5,250, 4 in
connection. with 1-in WM $10,500, 4 or 6
in. connection with 1-1/2 in WM $31,668, 6
in. connection with 2 in. WM $52,500, 6 in.
and larger connection with 4 in. or larger
WM by est. at $210/FU
Activity in 2021-22
Capacity Fees Collected
Water $123,175
Wastewater Collection $31,500
----------------------------------------------------------- Total Capacity Fees Collected $154,675
USE OF FEES:

The fees are used exclusively for water and sewer
system improvements.

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City of Palo Alto (ID # 15018)
City Council Staff Report
Report Type: Study Session Meeting Date: 12/5/2022
City of Palo Alto Page 1
Summary Title: Stanford Community Plan
Title: Study Session to Receive an Update on the Santa Clara County’s Effort to Update the Stanford Community Plan.

From: City Manager
Lead Department: Planning and Development Services
Recommendation:

Staff recommends that Council conduct a study session to receive an update on the County’s effort to update the Stanford Community Plan.

Background:

Santa Clara County has been preparing an update to the Stanford Community Plan (SCP). The SCP is a component of the C ounty’s General Plan and applies to Stanford University lands in unincorporated areas of Santa Clara County. The SCP sets forth goals, policies and programs to guide development within these areas; the 2000 General Use Permit is a regulatory land use document that implements the SCP.

There is also a 1985 Land Use Policy Agreement signed by the County, Stanford University and the City of Palo Alto that sets forth certain policies regarding land use, annexation and development of Stanford lands in the Count y. More specifically, the agreement establishes that academic land uses in unincorporated areas, for which Stanford provides municipal services, and open space and agricultural land uses held in reserve for academic use, should remain unincorporated. Non -academic uses should be subject to city (Palo Alto) annexation. The Stanford Research Park, Stanford Hospital and Stanford Shopping Center are Palo Alto incorporated areas.

The SCP was last amended in 2015. The County was preparing an amendment with the f iling and subsequent withdrawal of Stanford University’s General Use Permit application. The County has since proceeded with the SCP amendment, which has been further informed by the AA2
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preparation of three additional studies, including: municipal services; 1 childcare;2 and, graduate student housing affordability studies.3
Having conducted a number of community meetings and study sessions, which staff has previously provided updates to Council, the County Board of Supervisors is poised to signal its intent to adopt the SCP on December 13, 2022.

City staff requested, and the County agreed, to have a County representative provide an update to the City Council on the SCP in advance of the Board of Supervisors action next week. This study session is in respons e to that request. No action can be taken by the City Council at the study session but Councilmember comments and feedback will be summarized by the County and provided to the Board of Supervisors for consideration at their December meeting.

Additional information is available in the County’s prior staff reports.4 Policy Implications:

The SCP will set forth the goals, policies and programs that will guide development on unicorporated academic, open space and agricultural lands in Santa Clara County. As a neighboring juridisction, the City of Palo Alto has a policy interest in how development may impact housing supply, traffic, parking, access to City parks and potentially other municipal services.

On September 14, 2022, Mayor Burt sent a letter to Cou nty staff highlighting the City’s interest in housing, circulation, property acquisition in Palo Alto for academic uses and how that impacts the City’s property tax revenue, and other topics. The letter was previously transmitted to the City Council and is included with this report as Attachment A.

Resource Impact:

Staff has been monitorring this project and providing updates to the City Council as appropriate, including scheduling this study session discussion. This work has been absorbed using existing department resources.
1https://static1.squarespace.com/static/5ef397ab7a79e315cd9066ae/t/625de6a8d406c01667f8323c/1650321067 805/3815001_StanfordU_MunicipalSvcsStudy_04.15.2022_draft.pdf 2https://static1.squarespace.com/static/5ef397ab7a79e315cd9066ae/t/62867e89dd8254178e016dcb/165298138 7389/Stanford+Childcare+Needs+Assessment+-+FINAL+PUBLIC+REVIEW+DRAFT-+05.18.2022.pdf 3https://static1.squarespace.com/static/5ef397ab7a79e315cd9066ae/t/627ee19cf03ad051390ae248/1652482461 809/Draft+Housing+Report+5-12-22.pdf
4 October 18, 2022, Agenda Item 13:
https://static1.squarespace.com/static/5ef397ab7a79e315cd9066ae/t/627ee19cf03ad051390ae248/1652482461 809/Draft+Housing+Report+5-12-22.pdf
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Timeline:

The Santa Clara County Board of Supervisors have decision -making authority for the SCP and intend to signal its intent to adopt the plan in December with final approval anticiapted in 2023 pending conclusion of the associated environmental analysis.

Stakeholder Engagement:

The County has held several virtual community meetings last summer to receive public input.

Staff has provided Council updates throughout the plan prepartion process.

Attachments:

Attachment2.A: Attachment A: Palo Alto Comment Letter (Stanford Community Plan) HLUET 09.15.22 (PDF)
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CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100 S
eptember 14, 2022
Ja
cqueline Onciano, Director
Department of Planning and Development
Santa Clara County Planning Office
70 W. Hedding Street
7th Floor, East Wing
San Jose, CA 95110
R
E: Stanford Community Plan Update
D
ear Ms. Onciano & Staff:

The City of Palo Alto thanks the County for the valuable work that has been put into the Draft Stanford Community Plan and we appreciate the opportunity to comment on the update. The City supports this effort as an important next step in planning for the future of the unincorporated Stanford University lands, and we appreciate the County’s public engagement efforts and opportunities for input on the issue. This is particularly important to the City given Stanford’s adjacency and impacts on Palo Alto.

In the context of the ‘1985 Land Use Policy Agreement’ between the County, Stanford, and Palo Alto, we offer the following comments and request additional opportunities for continued engagement to fully understand the implications of the SCP on Palo Alto. The issues of primary concern to the City, based on information available at this time, are briefly highlighted below:

A. H
ousing

1. House students/employees on Stanford -owned properties. We suggest that the University continue to strive to house all its students and employees on Stanford -owned properties. Given the very great challenges of meeting Palo Alto’s cu rrent RHNA mandate for over 6,000 housing units in the coming eight-year period, we are concerned by the SCP proposal to allow up to 30% of Stanford’s housing requirements on Stanford owned lands that are contiguous to the University. These sites would be primarily in Palo Alto on land (primarily the Stanford R esearch Park) that the city is seeking to be used for housing for those who work in the City. In addition, Stanford should be required to evaluate other properties within its academic growth boundary for housing.

2. Build housing before academic buildings. We encourage p olicy that builds housing first then allows academic development.

3. County’s Housing Opportunity Sites on Stanford Lands. The County’s Draft Housing Element identifies three housing opportunity sites with potential for between 1,680 and 2,160 dwelling

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u
nits that represents between 53 -69% of the total Regional Housing Needs Allocation for the County.
• This is substantial planned growth adjacent to the City limits, which is only second to the opportunity sites located adjacent to the City of San Jose . However, in contrast, the Stanford sites are concentrated in one area, creating the potential for a greater impact on Palo Alto.

B. C
irculation

1. Pa rking Impacts: Stanford should be required to pay for mitigation of parking impacts which could include the initiation and operation of necessary Residential Parking Programs ( RPP).

2. T ransportation Demand Management ( TDM) Program Changes: Palo Alto is greatly impacted if the Stanford TDM program fails. For Stanford’s TDM to work, it needs to invest in Palo Alto infrastructure and transit.
• The new Trip Reduction approach in lieu of fair-share intersection payments and the Trip Credit Methodology needs to be clarified and explained. • It is not appropriate that Stanford Research Park trips reduced are being used as trip credits for campus development.
• A better approach would be to target trip reduction activities to non-Stanford employees without access to TDM programs.

3. I n lieu of fair share intersection payments: Expansion, integration, and transparency of the Marguerite system into the City of Palo Alto neighborhoods, in collaboration with the City , should be considered or required. Financial support of local transit in lieu of Marguerite expansion is aa preferred consideration. Moreover, it would be appropriate to provide funds additional bicycle/pedestrian and vehicular crossings of the Caltrain corridor.

C. 2 7 University Property and the Caltrain Station: Stanford owns these key parcels, which constitute the busiest Caltrain station . Stanford’s entities rely on Caltrain as the backbone of its TDM program .

F
uture planning of this site should be an important consideration in the SCP.

D. S tanford’s shift to Life Sciences: This shift introduces potentially hazardous materials, and its handling and storage of these materials affects the City’s interest in locating additional housing in and around the Stanford Research Park.

E. Impacts of Stanford Acquiring Land in Palo Alto: T he City has concerns regarding Stanford acquiring land in Palo Alto and how this affec ts the City’s property tax revenue when used for ‘academic ’ purposes as defined in the 1985 Agreement, including housing for faculty. Palo Alto is concerned with the prospect of Stanford owned housing within the City being exempt from property taxes despite additional impacts of those residents on our public schools and city services . Palo Alto seeks fu ll d
isclosure by Stanford of Un iversity owned properties within the city limits, their status, a nd a calculation of tax revenue lost.

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W
e would be happy to meet with you and Supervisor Simitian if such a meeting would help resolve any of these issues or concerns. If there are any questions regarding the specific SCP update comments attached, please contact our Planning Director Jonathan Lait at [email protected].

S
incerely,
M
ayor Pat Burt
C
c Palo Alto City Council
City Manager Ed Shikada
City Attorney Molly Stump
Jonathan Lait/File

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