Palo Alto City Council
March 20, 2023

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
Pg.
77 Packet Pg. 88 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H2.1 Policy
H2.1.1 Program To allow for higher density residential development, consider amending the Zoning Code to permit high‐density residential in mixed use or single use projects in commercial areas within one‐ half a mile of fixed rail stations and to allow limited exceptions to the 50‐foot height limit for Housing Element Sites within one‐ quarter mile of fixed rail stations.

C Part of the Phase 1 Housing Element implementation plan for 2018. Completion in Feb. 2019.

H2.1.2 Program Allow increased residential densities and mixed‐use development only where adequate urban services and amenities, including roadway capacity, are available.

C The Zoning Code was amended in January 2019 to eliminate density restrictions in the CC(2) zone, and the CN and CS zoned properties along El Camino Real.

The program was completed in January 2019 as part of the Phase 1 Housing Element implementation plan for 2018. The Comprehensive Plan, adopted in 2018, and accompanying EIR, evaluated potential impacts to urban services and amenities, including roadway capacity. It identified improvements to be implemented in parallel with new housing and other development.

H2.1.3 Program Amend the zoning code to specify the minimum density of eight dwelling units per acre in all RM‐15 districts. Consider amending the zoning code to specify minimum density for other multifamily zoning districts, consistent with the multi‐family land use designation in the Comprehensive Plan.

C Complete. The Zoning Code was amended in January 2019 to allow for increased minimum residential densities in specified districts, including the RM districts, and increased maximum density for one RM zone (RM15 became RM20, 20 DUs/Acre). The program was completed as part of the Phase 1 Housing Element implementation plan for 2018.

H2.1.4 Program Amend the Zoning Code to create zoning incentives that encourage the development of smaller, more affordable housing units, including units for seniors, such as reduced parking requirements for units less than 900 square feet and other flexible development standards.

PC This Zoning Code was amended in January 2019 to include reduced parking standards for smaller units: 1 space per “micro” units, defined as units of 450 sq. ft. or less, and

0.75 spaces per senior housing unit. Zoning Code changes also capped average unit size in the Downtown CD‐C district to 1,500 sq. ft. The program was completed as part of the Phase 1 Housing Element implementation plan for 2018.

Additionally, an ADU Ordinance to address ADU/JADU guidelines was adopted November 2020. The Planning and Transportation Commission recommended draft update to the ADU Chapter 18.09 establishing rules for affordable units and incorporating the 2022 State ADU legislation – Council is scheduled to adopt the updated ADU ordinance in December 2022.

Program H2.1.4 is mostly completed.

H2.1.5 Program Use sustainable neighborhood development criteria to enhance connectivity, walkability, and access to amenities, and to support housing diversity.

PC This program is partially complete. The North Ventura Coordinated Area Plan is underway, which will support this program objective.

Identify and implement strategies to increase housing density and diversity, including mixed‐use development and a range of unit styles, near community services.

Emphasize and encourage the development of affordable and mixed‐income housing to support the City’s fair share of the regional housing needs and to ensure that the City’s population remains economically diverse.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
Pg.
78 Packet Pg. 89 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H2.1.6 Program Consider density bonuses and/or concessions including allowing greater concessions for 100% affordable housing developments.

C Complete. The Zoning Code was amended January 2019 to provide a local density bonus program, the Housing Incentive Program (HIP), as an alternative to State Density Bonus Law. The HIP allows Director‐level approval of additional FAR (more than can be achieved under SDBL in most cases) and flexibility in development standards. The portion of the program was completed ias part of the Phase 1 Housing Element implementation plan for 2018.

In 2022, the City modified the Affordable Housing Overlay district into the Affordable Housing Incentive Program to streamline the approval process for projects with 100% affordable units. The new Incentive Program only requires review and approval by the ARB. If a project meets the affordability and location standards indicated here, it automatically qualifies for modified development standards, including increased FAR and height, reduced open space requirements, and reduced parking (0.75 space/unit by right, or as low as

0.3 space/unit with a parking study). This portion of the program was completed in June 2022 as part of the Objective Standards project.

H2.1.7 Program Explore developing a Transfer of Development Rights (TDR) program to encourage higher‐density housing in appropriate locations.

PC Completed part of the Phase 1 Housing Element implementation plan for 2018.This program was partially completed through implementation of the HIP (instead of TDR per se), which allowed for increased FARs and more flexible development standards, within commercial mixed‐use districts near transit, and without legislative action. The program was completed in January of 2019 as part of the Phase 1 Housing Element implementation plan for 2018.

H2.1.8 Program Promote redevelopment of underutilized sites by providing information about potential housing sites on the City’s website, including the Housing Sites identified to meet the RHNA and information about financial resources available through City housing programs.

C Post information on website upon adoption of Housing Element. The City of Palo Alto provides a housing opportunity map on its website that has identified locations for housing opportunity sites for the current housing cycle and small lot consolidation housing opportunity sites.

H2.1.9 Program Amend the Zoning Code to create zoning incentives that encourage the consolidation of smaller lots identified as Housing Inventory Sites and developed with 100% affordable housing projects.

Incentives may include development review streamlining, reduction in required parking for smaller units, or graduated density when consolidated lots are over one‐half acre. Adopt amendments as appropriate. Provide information regarding zoning incentives to developers.

C Adopt amendments within two years of Housing Element adoption. The Zoning Code was amended in 2017 to include a list of incentives and standards for small lot consolidation, see Section 18.42.140 of the Zoning Code. The housing consolidation projects must be 100% affordable housing and deed‐restricted for no fewer than 55 years.

H2.1.10 Program As a part of planning for the future of El Camino Real, explore the identification of pedestrian nodes (i.e. “pearls on a string”) consistent with the South El Camino Design Guidelines, with greater densities in these nodes than in other areas.

PC This program is partially complete; pedestrian nodes were studied as part of the Phase I housing implementation plan for 2018.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
Pg.
79 Packet Pg. 90 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H2.1.11 Program Consider implementing the Pedestrian and Transit Oriented Development (PTOD) Overlay for the University Avenue downtown district to promote higher density multifamily housing development in that area.

P Pending.

H2.1.12 Program Evaluate developing specific or precise plans for the downtown, California Avenue, and El Camino Real areas to implement in the updated Comprehensive Plan. Adopt plans for these areas, as appropriate.

C Complete. Comprehensive Plan adopted the study of Coordinated Plans for Cal Ave and Downtown. In February 2020, the ABAG Executive Board adopted Palo Alto University Avenue/Downtown Priority Development Area (PDA). The Comprehensive Plan includes policies calling for a coordinated study for Cal Ave and Downtown. In April 2022, the City approved a master funding agreement with MTC to initiate a master plan for Downtown. The Comprehensive Plan was adopted in 2018. Consultant selection in February 2023 by Council for the Downtown CAP is anticipated.

H2.2 Policy
H2.2.1 Program Implement an incentive program within three years of Housing Element adoption for small properties identified as a Housing Element Site to encourage housing production on those sites. The incentive eliminates Site and Design Review if the project meets the following criteria: • The project has 9 residential units or fewer,
• A residential density of 20 dwelling units per acre or higher Maximum unit size of 900 square feet
C This program was adopted within three years of the Housing Element’s adoption and streamlined the process for identifying Housing Element Sites.

Section 18.42.140 of Zoning Code provides incentives to encourage housing production of these small lot sites. However, no property owners/developers took advantage of the zoning incentives.

H2.2.2 Program Work with Stanford University to identify sites suitable for housing that may be located in the Stanford Research Park and compatible with surrounding uses.

PC This program is underway. Palo Alto’s Comprehensive Plan 2030 contains programs within its land use element that explore additional housing opportunities as well as proposed programs in the 6th Cycle Housing Element update.

H2.2.3 Program Use coordinated area plans and other tools to develop regulations that support the development of housing above and among commercial uses.

PC This program is partially complete. A Coordinated Area Plan (CAP) for the North Ventura neighborhood is expected to be completed in 2023. This plan includes policies and zoning regulations to support multifamily housing. Beginning a Downtown CAP is now possible as the 2022 PDA Grant allows the City to hire a consultant; consultant selection began in 2022. The City is also considering preparing a CAP for the California Ave. corridor.

Continue to support redevelopment of suitable lands for mixed uses containing housing to encourage compact, infill development.

Optimize the use of existing urban services and support transit.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
Pg.
80 Packet Pg. 91 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H2.2.4 Program As detailed in the Resources chapter of the Housing Element, the City of Palo Alto has committed to providing financial assistance towards the conversion of 23 multi‐family units to very low‐income (30‐50% AMI) units for a period of 55 years, and is seeking to apply credits towards the City’s RHNA (refer to Appendix C ‐ Adequate Sites Program Alternative Checklist). The Palo Alto Housing Corporation (PAHC) approached the City for assistance in converting a portion of the 60 units at the Colorado Park Apartments, to be reserved for very low‐income households. The committed assistance will ensure affordability of the units for at least 55 years, as required by law.

C Completed in January 2016.

H2.2.5 Program The City will continue to identify more transit‐rich housing sites including in the downtown and the California Avenue area after HCD certification as part of the Comprehensive Plan Update process and consider exchanging sites along San Antonio and sites along South El Camino that are outside of identified “pedestrian nodes” for the more transit‐rich identified sites.

PC This program is not yet complete. It was amended to include additional housing in the San Antonio corridor in November 2019.

H2.2.6 Program On parcels zoned for mixed use, consider allowing exclusively residential use on extremely small parcels through the transfer of zoning requirements between adjacent parcels to create horizontal mixed‐use arrangements. If determined to be appropriate, adopt an ordinance to implement this program.

C Complete. The Zoning Code was amended in 2017 to include a list of incentives and standards for small lot consolidation, see Section 18.42.140 of Zoning Code. The housing consolidation projects must be 100% affordable housing and deed restricted for no fewer than 55 years. This includes mixed use projects containing ground floor retail and retail like use provided the residential square footage is at least 85% of the project's gross floor area.

H2.2.7 Program Explore requiring minimum residential densities to encourage more housing instead of office space when mixed‐use sites develop and adopt standards as appropriate.

C Adoption new development standards CS18.16.060. The zoning code was updated in 2017 to allow residential‐only projects within commercial mixed‐use districts on El Camino Real and California Avenue, in addition to sites listed on the Housing Element sites inventory. In December 2018 the City added minimum densities to the RM‐20, RM‐30 and RM‐40 zones. Additional updates in January 2019 eliminated maximum residential densities and increased potential FAR through the HIP program in most commercial mixed‐use districts.

These changes aimed to create incentives for housing over office space when commercial sites redevelop.

H2.2.8 Program Assess the potential of removing maximum residential densities (i.e. dwelling units per acre) in mixed use zoning districts to encourage the creation of smaller housing units within the allowable Floor Area Ratio (FAR) and adopt standards as appropriate.

C Completed in Feb. 2019. The zoning code was amended in December 2018 to add minimum densities in the RM‐20, RM‐30 and RM‐40 zones, and to remove maximum residential density from the CC(2) zones and the CN and CS zones along El Camino Real. Zoning Code changes also capped average unit size in the Downtown CD‐C district to 1,500 sq. ft. The program was completed in January of 2019 as part of the Phase 1 Housing Element implementation plan for 2018.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
Pg.
81 Packet Pg. 92 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H2.3 Policy
H2.3.1 Program Maintain an ongoing conversation with the community, using a variety of forms of media, regarding the need for affordable housing, the financial realities of acquiring land and building affordable housing, and the reasons that affordable housing projects need higher densities to be feasible developments
O This is an ongoing program. Efforts are underway to enhance outreach regarding affordable housing.

H3 GOAL
H3.1 Policy
H3.1.1 Program Amend the City’s BMR ordinance to lower the BMR requirement threshold from projects of five or more units to three or more units, and to modify the BMR rental section to be consistent with case law related to inclusionary rental housing.

C Complete. Ordinance adopted on April 17, 2017.

H3.1.2 Program Implement the BMR ordinance to reflect the City’s policy of requiring:
a)At least 15 percent of all housing units in projects must be provided at below market rates to very low‐, low‐, and moderate‐ income households.

Projects on sites of five acres or larger must set aside 20 percent of all units as BMR units. Projects that cause the loss of existing rental housing may need to provide a 25 percent component as detailed in Program H 1.2.1. BMR units must be comparable in quality, size, and mix to the other units in the development.
b) Initial sales price for at least two‐ thirds of the BMR units must be affordable to a household making 80 to 100 percent of the Santa Clara County median income. The initial sales prices of the remaining BMR units may be set at higher levels affordable to households earning between 100 to 120 percent of the County’s median income. For projects with a 25 percent BMR component, four‐fifths of the BMR units must be affordable to households C The Below Market Rate ordinance has been adopted in 2017.

H3.1.3 Program Continue implementation of the Below Market Rate Program Emergency Fund to prevent the loss of BMR units and to provide emergency loans for BMR unit owners to maintain and rehabilitate their units. Consider expansion of program funds to provide financial assistance for the maintenance and rehabilitation of older BMR units.

O Ongoing Program preserved one BMR unit in 2016.

MEET UNDERSERVED HOUSING NEEDS, AND PROVIDE COMMUNITY RESOURCES TO SUPPORT OUR NEIGHBORHOODS Heighten coHeighten community awareness and to receive community input regarding the social, economic and environmental values of maintaining economic diversity in the City by providing affordable and mixed income higher density housing along transit corridors and at other appropriate locations.mmunity awareness and to receive community input regarding the social, economic and environmental values of maintaining economic diversity in the City by providing affordable and mixed income higher density housing along transit corridors and at other appropriate locations.

Encourage, foster, and preserve diverse housing opportunities for very low‐, low‐, and moderate income households.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
Pg.
82 Packet Pg. 93 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H3.1.4 Program Preserve affordable housing stock by monitoring compliance, providing tenant education, and seeking other sources of funds for affordable housing developments at risk of market rate conversions. The City will continue to renew existing funding sources supporting rehabilitation and maintenance activities.

PC Partially Complete. Underway, in discussions with property owners of projects at risk of conversion, including Lytton Gardens, Terman Apartments and Webster Wood Apartments. Staff reached out to HUD re: Terman Apts. and the HUD contract automatically renews in 2026. Staff will reach out before 2026 to verify.

H3.1.5 Program Encourage the use of flexible development standards, including floor‐ area ratio limits, creative architectural solutions, and green building practices in the design of projects with a substantial BMR component.

C The Planned Housing Zone was adopted in Sept. 2020 with more affordable housing options to provide greater flexibility with a 20% affordability component. Flexible development standards and additional FAR were made available for all multifamily housing projects and specifically for BMR housing projects through the Housing Incentive Program which was adopted in 2019 and the Affordable Housing Incentive Program which was adopted in 2022.

H3.1.6 Program Require developers of employment‐ generating commercial and industrial developments to contribute to the supply of low‐ and moderate‐income housing through the payment of commercial in‐ lieu fees as set forth in a nexus impact fee study and implementing ordinances.

C The in‐lieu fee has been adopted and commercial developers are now paying a linkage fee. The City will continue to enforce and revise fee levels when necessary. This program is complete.

This program is not complete. It has been included in Housing Work Plan as Program 2.8.

H3.1.7 Program Ensure that the Zoning Code permits innovative housing types such as co‐ housing and provides flexible development standards that will allow such housing to be built, provided the character of the neighborhoods in which such housing is proposed to be located is maintained.

PC Included in the Housing Work Plan as Program 2.8. The City continues to revise their ADU ordinance to meet State requirements. Additional revisions that go beyond State requirements will be considered in 2023. This program will be carried forward to the 6th cycle Housing Element.

H3.1.8 Program Recognize the Buena Vista Mobile Home Park as providing low‐ and moderate income housing opportunities. Any redevelopment of the site must be consistent with the City’s Mobile Home Park Conversion Ordinance adopted to preserve the existing units. To the extent feasible, the City will seek appropriate local, state and federal funding to assist in the preservation and maintenance of the existing units in the Buena Vista Mobile Home Park.

C Complete.This program preserved 117 at‐risk mobile home park units in September of 2017 in the Buena Vista Mobile Home Park. The City of Palo Alto and SCCHA purchased the site to preserve it as an affordable living community.

H3.1.9 Program Continue enforcing the Condominium Conversion Ordinance. O This is an ongoing program.

H3.1.10 Program Annually monitor the progress in the construction or conversion of housing for all income levels, including the effectiveness of housing production in mixed use developments.

O This is an ongoing program. The City provides annual reports on the progress of this program.

H3.1.11 Program When using Housing Development funds for residential projects, the City shall give a strong preference to those developments which serve extremely low‐income (ELI), very low‐income, and low‐ income households.

O Housing funds provided as needed by housing projects. This program is ongoing and housing funds provided as needed by housing projects. The City permitted 101 housing units appropriate for very low‐income households during the 5th Housing Cycle.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
Pg.
83 Packet Pg. 94 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H3.1.12 Program Amend the Zoning Code to provide additional incentives to developers who provide extremely low‐income (ELI), very low‐ income, and low‐income housing units, above and beyond what is required by the Below Market Rate program, such as reduced parking requirements for smaller units, reduced landscaping requirements, and reduced fees.

C Part of the Phase 1 Housing Element implementation plan for 2018. In 2019 new development/parking standards were adopted in Housing Incentive Program for the commercial mixed‐use district, (example: Zoning Code Section18.16.060). This provided extra incentives for 100% BMR projects, including increased FAR, reduced parking, reduced setbacks and lot coverage, without legislative action.

In 2022, the City modified the Affordable Housing Overlay district into the Affordable Housing Incentive Program to streamline the approval process for projects with 100% affordable units. The new Incentive Program only requires review and approval by the ARB. If a project meets the affordability and location standards indicated here, it automatically qualifies for modified development standards, including increased FAR and height, reduced open space requirements, and reduced parking (0.75 space/unit by right, or as low as

0.3 space/unit with a parking study). This portion of the program was completed in June 2022 as part of the Objective Standards project.

H3.1.13 Program For any affordable development deemed a high risk to convert to market rate prices within two years of the expiration of the affordability requirements, the City will contact the owner and explore the possibility of extending the affordability of the development.

PC This program is partially complete. The City is in discussions with property owners of projects at risk of conversion in the next ten years, including Lytton Gardens, Terman Apartments, and Webster Wood Apartments. Staff reached out to HUD about the status of Terman Apartments. The HUD contract automatically renews in 2026 and currently the owner has no intention of not renewing the contract. Staff will follow up closer to 2026.

H3.1.14 Program Encourage and support the regional establishment of a coordinated effort to provide shared housing arrangement facilitation, similar to the HIP Housing Home Sharing Program in San Mateo County.

PC This program is partially complete. In April 2018, the Santa Clara County's Board approved the Santa Clara Home Sharing Program with partnership with Catholic Charities of Santa Clara County. However, the County program has since been
disbanded.

H3.2 Policy
H3.2.1 Program Continue to assist very low‐income households in reducing their utility bills through the Utilities Residential Rate Assistance Program O This is an ongoing program.

H3.2.2 Program Use existing agency programs such as Senior Home Repair to provide rehabilitation assistance to very low‐ and low‐income households.

O This is an ongoing program. It has led to the rehabilitation of six homes.

H3.3 Policy
H3.3.1 Program When appropriate and feasible, require all City departments to expedite processes and allow waivers of development fees as a means of promoting the development of affordable housing.

O This is an ongoing program. Council recently adopted new objective zoning standards in 2021 to expedite processing for all developments.

Reduce the cost of housing by continuing to promote energy efficiency, resource management, and conservation for new and existing housing.

Support the reduction of governmental and regulatory constraints, and advocate for the production of affordable housing.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
Pg.
84 Packet Pg. 95 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H3.3.2 Program Continue to exempt permanently affordable housing units from any infrastructure impact fees adopted by the City.

O This is an ongoing program.

H3.3.3 Program Promote legislative changes and funding for programs that subsidize the acquisition, rehabilitation, and operation of rental housing by housing assistance organizations, nonprofit developers, and for‐profit developers.

O This is an ongoing program. Active membership in the Non‐ Profit Housing Association.

H3.3.4 Program Support the development and preservation of group homes and supported living facilities for persons with special housing needs by assisting local agencies and nonprofit organizations in the construction or rehabilitation of new facilities for this population.

O The City is partnering with the County and Eden Housing to develop Mitchell Park Place, a 50 unit affordable housing project with 25 units for persons with disabilities.

This program is carried over as Program 6.5 in the 6th Housing Cycle, with an action to review and amend the City’s zoning ordinance to address State legislation pertaining to group homes and reduce constraints to development.

H3.3.5 Program Review and consider revising development standards for second units to facilitate the development of this type of housing, including reduced minimum lot size and FAR requirements. Based on this analysis consider modifications to the Zoning Code to better encourage the development of 2nd units.

PC This program is partially complete. In September 2022, the PTC recommended Council adopt an updated Zoning Chapter 18.09 to establishing rules for affordable units and incorporating the 2022 State ADU legislation. Council is scheduled to adopt the updated ordinance early 2023.

H3.3.6 Program Continue to participate with and support agencies addressing homelessness. O This is an ongoing program. The City has partnered with Lifemoves to construct Palo Alto Homekey, an emergency shelter that will service approximately 300 persons a year. It should be operational by August 2023.

H3.3.7 Program Prepare a local parking demand database to determine parking standards for different housing uses (i.e. market rate multifamily, multifamily affordable, senior affordable, emergency shelters etc.) with proximity to services as a consideration. Adopt revisions to standards as appropriate.

PC Partially Complete .Underway, consultant has been retained to complete a parking study.

H3.4 Policy
H3.4.1 Program Maintain a high priority for the acquisition of new housing sites near public transit and services, the acquisition and rehabilitation of existing housing, and the provision for housing‐related services for affordable housing. Seek funding from all State and federal programs whenever they are available to support the development or rehabilitation of housing for very low‐, low‐, and moderate‐ income households.

O This is an ongoing program. This program has led to the acquisition of one new housing site.

Pursue funding for the acquisition, construction, and rehabilitation of housing that is affordable to very low‐, low‐and

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
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85 Packet Pg. 96 of 222

Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H3.4.2 Program Support and expand local funding sources including the City’s Housing Development Fund, Housing Trust of Santa Clara County, CDBG Program, County of Santa Clara’s Mortgage Credit Certificate Program (MCC), or similar program. Continue to explore other mechanisms to generate revenues to increase the supply of low‐ and moderate‐ income housing.

O This is an ongoing program. The City has applied and has been successfully awarded from State Homekey, Local Housing Trust Fund and Permanent Local Housing Allocation funds. These funds will help fund a future facility that will serve up to 300 persons annually. Also Mitchell Park Place, a 50 unit affordable project will serve low and very low income persons with disabilities. In addition, the City has already permitted 161 very low and low‐income units during the 5th Housing Cycle.

H3.4.3 Program Periodically review the housing nexus formula required under Chapter 16.47 of the Municipal Code to fully reflect the impact of new jobs on housing demand and cost.

C This program is complete. The housing nexus study was updated in 2016.

Development fees are evaluated and updated annually. The City will prepare an updated nexus and feasibility study as part of Program 2.1 in the 6th Housing Cycle.

H3.4.4 Program The City will work with affordable housing developers to pursue opportunities to acquire, rehabilitate, and convert existing multi‐ family developments to long‐term affordable housing units to contribute to the City’s fair share of the region’s housing needs.

O This is an ongoing program. The City used CDBG funds to rehabilitate a 60‐unit affordable housing development (Colorado Park) and provided local funds toward the purchase of the City’s only mobile home park; rehabilitation of the coaches is ongoing.

H3.5 Policy
H3.5.1 Program Continue to participate in the Santa Clara County Homeless Collaborative as well as work with adjacent jurisdictions to develop additional shelter opportunities.

O Continued participation in regional CDBG/housing collaborative efforts. This program is part of the normal function of the City’s existing Homeless Prevention Program.

H3.5.2 Program Amend the Zoning Code to clarify distancing requirements for emergency shelters, stating that “no more than one emergency shelter shall be permitted within a radius of 300 feet.”
C This program is complete.

H3.5.3 Program Amend the Zoning Code to revise definitions of transitional and supportive housing to remove reference to multiple‐family uses, and instead state that “transitional and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone.” C This program is complete.

H3.6 Policy
Support the provision of emergency shelter, transitional housing, and ancillary services to address homelessness.

Support the creation of workforce housing for City and school district employees as feasible.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
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Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H3.6.1 Program Conduct a nexus study to evaluate the creation of workforce housing for City and school district employees.

C This program is complete. City adopted Workforce Housing Overlay. In addition, the City has partnered with the City for the teacher housing project at 231 Grant Ave.

H4 GOAL
H4.1 Policy
H4.1.1 Program Work with appropriate State and federal agencies to ensure that fair housing laws are enforced, and continue to support groups that provide fair housing services, such as the Mid‐Peninsula Citizens for Fair Housing. Continue the efforts of the Human Relations Commission to combat discrimination in rental housing, including mediation of problems between landlords and tenants.

O The City continued to engage with State, federal, and local support groups on fair housing enforcement.

H4.1.2 Program Continue the efforts of the Human Relations Commission to combat discrimination in rental housing, including mediation of problems between landlords and tenants.

O The City contracts with Project Sentinel to provide mediation services. 41 households were assisted with fair housing services during the 5th Housing Cycle. The City will continue to contract with Project Sentinel to provide mediation services.

H4.1.3 Program Continue implementation of City’s ordinances and State law prohibiting discrimination in renting or leasing housing based on age, parenthood, pregnancy, or the potential or actual presence of a minor child.

O 41 households were assisted with fair housing services during the 5th Housing Cycle.

H4.1.4 Program Continue the City’s role in coordinating the actions of various support groups that seek to eliminate housing discrimination and in providing funding and other support for these groups to disseminate fair housing information in Palo Alto, including information on referrals to pertinent investigative or enforcement agencies in the case of fair housing complaints.

O The City contracts with Project Sentinel to provide fair housing services.

H4.1.5 Program Heighten community awareness regarding and implement the Reasonable Accommodations procedure for the siting, funding, development, and use of housing for people with disabilities.

O This is an ongoing program. The city continued to enforce reasonable accommodation requirements such granting land use exceptions to meet the reasonable accommodation request. The City adopted a reasonable accommodation process ordinance in January of 2014. The codified ordinance is available at all counters where applications are made for permits and licenses, and on the City’s website.

Support programs and agencies that seek to eliminate housing discrimination.

PROMOTE AN ENVIRONMENT FREE OF DISCRIMINATION AND THE BARRIERS THAT PREVENT CHOICE IN HOUSING.

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

Item 5: Staff Report
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Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H4.1.6 Program Continue to implement the Action Plan of the City of Palo Alto’s Community Development Block Grant (CDBG) Consolidated Plan and the Analysis of Impediments to Fair Housing Choice.

Support housing that incorporates facilities and services to meet the health care, transit, and social service needs of households with special needs, including seniors and persons
with disabilities.

O This is an ongoing program. The city accomplished this program by continuing to partner with Project Sentinel to provide education and enforcement fair housing law. 41 households were assisted with fair housing services. In addition, the City has provided CDBG funding to Mitchell Park Place, an affordable housing project that serves persons with disabilities.

H4.2 Policy
H4.2.1 Program Ensure that the Zoning Code facilitates the construction of housing that provides services for special needs households and provides flexible development standards for special service housing that will allow such housing to be built with access to transit and community services while preserving the character of the neighborhoods in which they are proposed to be located.

PC This program is not yet complete. The City implemented a pilot Safe Parking Program for people experiencing homeless. It is included as Housing Work Plan Program 2.4.7.

The city is partnering with the County and Eden Housing to develop Mitchell Park Place, a 50 unit affordable development with 25 units for persons with disabilities.

H4.2.2 Program Work with the San Andreas Regional Center to implement an outreach program that informs families in Palo Alto about housing and services available for persons with developmental disabilities. The program could include the development of an informational brochure, including information on services on the City’s website, and providing housing‐related training for individuals/families through workshops.

PC Partially Complete program. The City will contract with and financially support non‐ profit services providers, such as the Opportunity Center, that help meet the supportive services needs of the City’s diverse community, especially those with extremely low incomes.

H5 GOAL
H5.1 Policy
H5.1.1 Program Periodically report on the status and progress of implementing the City’s Green Building Ordinance and assess the environmental performance and efficiency of homes in the following areas:
‐ Greenhouse gas emissions
‐ Energy use
‐ Water use (indoor and outdoor)
‐ Material efficiency
‐ Storm water runoff
‐ Alternative transportation
O This is an ongoing program. It is a routine staff function.

H5.1.2 Program Continue providing support to staff and the public (including architects, owners, developers and contractors) through training and technical assistance in the areas listed under Program H5.1.1.

O This is an ongoing program. It is a routine staff function.

Reduce long‐term energy costs and improve the efficiency and environmental performance of new and existing homes.

Support housing that incorporates facilities and services to meet the health care, transit, and social service needs of households with special needs, including seniors and persons with disabilities.

REDUCE THE ENVIRONMENTAL IMPACT OF NEW AND EXISTING HOUSING.

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Attachment B-Housing Element
Annual Progress Report, 2022

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Program Text
2022 Status
C= Complete, PC=
Partially Complete,
O= Ongoing, P=
Pending
Staff Comments
H5.1.3 Program Participate in regional planning efforts to ensure that the Regional Housing Needs Allocation targets areas that support sustainability by reducing congestion and greenhouse gas emissions.

O This is an ongoing program.

H5.1.4 Program Review federal, State, and regional programs encouraging the improvement of environmental performance and efficiency in construction of buildings, and incorporate appropriate programs into Palo Alto’s policies, programs and outreach efforts.

O This is an ongoing program. It is a routine staff function.

H5.1.5 Program Enhance and support a proactive public outreach program to encourage Palo Alto residents to conserve resources and to share ideas about conservation.

O This is an ongoing program. This program has led to the development of zero waste and energy efficiency and conservation. Palo Alto has its own public utility, which offers information and rebates for installation of water conservation and energy conservation systems and appliances. The City’s Zero Waste division similarly offers resources for reducing trash, increasing diversion rates, and opportunities for disposal of hazardous household waste. These resources are available at the City’s offices and on the City’s website.

H5.1.6 Program Provide financial subsidies, recognition, or other incentives to new and existing homeowners and developers to achieve performance or efficiency levels beyond minimum requirements.

O This is an ongoing program. This program is with the City’s Utilities Department, which offers rebates and pilot programs such as the new heat pump water heater program launched in late 2022; Utilities efforts are ongoing and Planning is working with Utilities to streamline and remove Zoning Code obstacles to efficiency improvements.

H5.1.7 Program In accordance with Government Code Section 65589.7, immediately following City Council adoption, the City will deliver to all public agencies or private entities that provide water or sewer services to properties within Palo Alto a copy of the 2015‐2023 Housing Element.

C Complete.

Source: City of Palo Alto, Planning and Development Services, February 2023

Item 5
Attachment B-Housing Element
Annual Progress Report, 2022

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Jurisdiction Palo Alto ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023
1 Projection Period 3 4
RHNA Allocation by Income
Level 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units to Date (all years)
Total Remaining
RHNA by Income
Level
Deed Restricted - 43 - - - - 58 117 - - Non-Deed Restricted - - - - - - - - - - Deed Restricted - 58 - 5 - 2 - - - - Non-Deed Restricted - - - - - - - - - - Deed Restricted - - - - - - - - 1 - Non-Deed Restricted - 11 3 28 - - - - - - Above Moderate 587 - 174 15 61 54 105 132 95 127 - 763 - 1,988
- 286 18 94 54 107 190 212 128 - 1,089 1,075 5 6 7
Extremely low-Income Need 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units to Date Total Units
Remaining
346 - - - - - - - - - - 346 Income Level
Very Low
Low
Extremely Low-Income Units*
Note: units serving extremely low-income households are included in the very low-income RHNA progress and must be reported as very low-income units in section 7 of Table A2. They must also be reported in the extremely low-income category (section 13) in Table A2 to be counted as progress toward meeting the extremely low-income housing need determined pursuant to Government Code 65583(a)(1). *Extremely low-income housing need determined pursuant to Government Code 65583(a)(1). Value in Section 5 is default value, assumed to be half of the very low-income RHNA. May be overwritten.

Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1). 473
367
Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will only include units that were permitted since the start of the planning period. Projection Period units are in a separate column.

Total RHNA
Total Units

ATTACHMENT C
Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected]. 235
218
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.
43 Moderate
691
432
278
Please contact HCD if your data is different than the material supplied here 65 2
Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability

Item 5
Attachment C-City RHNA Progress,
2022

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ATTACHMENT D

Staff Follow-up Items for Planning and Transportation Commission

On November 16, 2022, the Planning and Transportation Commission (PTC) discussed the statuses of the Comprehensive Plan and the Housing Element programs. There were two follow-up items raised at the meeting that staff is responding to below.

Comprehensive Plan Annual Report
Program C1.18.2: Support, promote, and publicize the provision of comprehensive senior services in coordination with senior service providers. Comprehensive services include addressing senior nutrition, mental health and transportation.

PTC Question: Has staff found a new North Palo Alto location for La Comida?

Staff Response: The existing north Palo Alto location of La Comida is First Methodist Church on Hamilton/Waverley corner. La Comida prepares food at Stevenson House location and brings that over to First Methodist Church.

Housing Element Annual Report
Commissioners expressed concerns about Palo Alto’s inability to meet the RHNA income -specific categories for housing and requested data showing examples from the neighboring communities facing s imilar constraints as Palo Alto.

Staff Response: There are no implications of not producing our RHNA. However, SB 35 thresholds are based on a jurisdiction’s housing production. In a table prepared by SV@HOME, Table 1 shows 2020 countywide affordable housing inventory and Table 2 shows the countywide affordable housing inventory in percentages by income level.

Table 1: 2020 Countywide Affordable Housing Inventory

Item 5
Attachment D-Staff
Response to PTC
Comments

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ATTACHMENT D

Table 2: Countywide Affordable Housing Inventory in Percentages by Income Level

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Attachment D-Staff
Response to PTC
Comments

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: March 20, 2023
Report #: 2302-1028
TITLE
Appointment of Council Member Stone to the Board of Directors of the Bay Area Water Supply & Conservation Agency and the Bay Area Regional Water System Financing Authority, for the term July 1, 2023 through June 30, 2027

RECOMMENDATION
Approve the appointment of Greer Stone to the Board of Directors of the Bay Area Water Supply & Conservation Agency and the Bay Area Regional Water System Financing Authority, for the term July 1, 2023 through June 30, 2027.

BACKGROUND/DISCUSSION
Governance of the Bay Area Water Supply & Conservation Agency (BAWSCA) and appointment of directors are set forth in California Water Code Section 81335 et. sec. The four-year term of Alison Cormack on the Board of Directors of BAWSCA and the Bay Area Regional Water System Financing Authority (RFA) will end on June 30, 2023. Appointments to both agencies must be made by action of the full Council at a public meeting. The term is four years and will expire on June 30, 2027. The next BAWSCA Board meeting is currently scheduled for April 20, 2023, and the next RFA meeting is scheduled for January 18, 2024
This appointment will become effective on July 1, 2023. If Director Cormack were to resign sooner, the appointee would complete Director Cormack's unfinished term and would begin a new four-year term on July 1, 2023. This appointment also enables the appointee to attend board meetings with Director Cormack prior to the appointment becoming effective.

ATTACHMENTS
Attachment A: BAWSCA Appointment Letter
APPROVED BY:

Approved by: Dean Batchelor, Director Utilities
Staff: Karla Dailey, Acting Assistant Director of Utilities, Resource Management Item 6
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155 Bovet Road, Suite 650 ⚫ San Mateo, CA 94402 ⚫ ph 650 349 3000 ⚫ fx 650 349 8395 ⚫ www.bawsca.org

January 26, 2023

The Hon. Lydia Kou, Mayor
City of Palo Alto
250 Hamilton Ave.

Palo Alto, CA 94301
Subject: Appointment of a Director to the Boards of the Bay Area Water Supply & Conservation Agency and the Bay Area Regional Water System Financing Authority
Dear Mayor Kou,
The four-year term of Alison Cormack on the board of directors of the Bay Area Water Supply & Conservation Agency (BAWSCA) will end on June 30, 2023, as will her term on the Bay Area Regional Water System Financing Authority (RFA). Action by your Council must be taken promptly.

The enabling acts for both special districts allow the city to reappoint its director for an unlimited number of terms or to appoint a new director at the end of each term. The appointment will be for a four-year term. While BAWSCA and RFA are special districts, they are not a Joint Powers Authority (JPA); therefore, the term and duty is independent of the appointee’s home agency.

Hence, whoever is appointed will have a term that ends on June 30, 2027.

The enabling acts for both special districts require that a vacancy on their boards be filled no later than 90 days from the date the vacancy occurs. However, we encourage your city to make the appointments before June 30, effective July 1, 2023, so that a quorum of both boards can be ensured.

Statutory qualifications:
• The appointee must be a resident of, and a registered voter in, the City. • The appointee may, but need not, be a member of your City Council.

Mechanics of the appointment process:
• The appointments must be made at a public meeting of the City Council and be properly agendized.
• The appointments must be made by action of the full City Council, rather than by unilateral action of the Mayor.
• The appointments do not need to be memorialized in a resolution; a motion duly passed and recorded in the minutes of the meeting is sufficient.

Item 6
Attachment A - BAWSCA
Appointment Letter

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Lydia Kou, Mayor
January 26, 2023

• A copy of the record of the council actions making the appointment should be sent to BAWSCA. The oaths of office must be administered prior to the appointee’s first meeting as a director on the BAWSCA and RFA Boards.

The two questions most frequently asked about an appointment are:
• Should the appointee be an elected member of the appointing agency’s governing board?
• Should the same person be appointed to the boards of both agencies? Both of these are matters of policy left entirely to the discretion of your council. I offer the following observations, based on BAWSCA’s experience.
• The great majority of cities and districts which are participants in BAWSCA and the RFA do select a member of their governing body to serve on the BAWSCA and RFA boards.

One advantage of appointing a currently serving or former elected member of your council to the board is the stature that his or her presence gives BAWSCA in its dealings with San Francisco, regulatory agencies and legislators. Another is the familiarity and experience the appointee already has in addressing policy matters for the City. The governing body of each individual agency is, of course, in the best position to evaluate these, and other relevant considerations.
• With no exceptions, cities and districts have appointed the same individual to both the BAWSCA and RFA boards.

Appointing one person on both boards offers an advantage because, although the two special districts have distinct roles, they are closely related. The familiarity with the issues gained through service on one board will be useful in participating on the other.

Additionally, having the same person appointed to both boards assure greater continuity.

Please see that your council places this matter on an agenda for action by the end of June 30, 2023. I may be reached at (650) 349-3000 or [email protected] if you have any questions.

Sincerely,

Nicole Sandkulla
Chief Executive Officer/General Manager

cc via email:

Alison Cormack, BAWSCA Board Member
Karla Dailey, BAWSCA Water Management Representative
Lisa Bilir, BAWSCA Water Management Representative

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Attachment A - BAWSCA
Appointment Letter

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: March 20, 2023
Report #:2302-1015
TITLE
Amendment No. 1 to Contract with LAZ Parking (C20176367) for Residential Preferential Parking (RPP) Program Parking Enforcement to Extend Term two years through February 2025 with no additional funds; CEQA status – categorically exempt (Regulation 15321 enforcement actions).

RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute the attached Contract Amendment No. 1 to extend contract C20176367 with Laz Parking for Residential Preferential Parking Enforcement through February 2025.

EXECUTIVE SUMMARY
Significant cost savings have been achieved over the course of the contract thus far, providing the opportunity to extend and renew the current services through early 2025 without increasing the existing $2,322,285 contract limit. This cost savings in RPP enforcement is due to 1) suspension of enforcement activities related to Covid-19 impacts in the last three contract years and 2) the adoption and transition to automated license plate recognition enforcement and related modified staffing plans.

BACKGROUND
Residential Preferential Parking Program
The City actively addresses city-wide parking and transportation challenges using a strategic, multi-faceted approach focused on parking management, parking supply, and transportation demand management programs. Parking management strategies have included the development of a city-wide Residential Preferential Parking (RPP) ordinance. The established program limits non-permit holder parking to two hours during program hours to ensure short term daily parking opportunities for visitors and guests. The RPP programs in their configuration are the result of a multi-year process that has included business and resident stakeholder engagement with city staff. Program development has included deliberations on enforcement Item 7
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hours, program boundaries, permit prices, and employee permit allocation. These comprehensive processes have represented a significant City effort to ensure neighborhood parking availability. RPP districts have thus far been established in the residential areas of Downtown Palo Alto, Evergreen Park-Mayfield, Southgate, and Old Palo Alto. The program relies upon contracted LAZ Parking enforcement services to enforce program signage and permit requirements.

LAZ Parking (operating as Serco at the time) Selected After Competitive RFP Process in 2019 The City of Palo Alto’s Office of Transportation staff developed a Request for Proposals (RFP) to receive proposals from firms that could implement the desired parking enforcement program in a timely manner for the City. The RFP did not specify the number of enforcement officers being requested; rather, the City invited proposers to visit the RPP Districts and make a proposal based on their experience with similar programs.

The RFP was issued in October 2019 and proposals were due on Monday, November 18, 2019.

The City received the following three (3) responses to the RFP:
•Ace,
•Republic Parking System, and
•Serco, Inc. (now LAZ Parking)
As specified in the RFP, evaluation of the proposals was conducted by City staff using the following criteria: ·
•Quality and completeness of the proposal; ·
•Quality, performance and effectiveness of the solution, goods and/or services to be provided by the Proposer; ·
•Proposer’s experience, including the experience of staff to be assigned to the project, the engagements of similar scope and complexity; ·
•Cost to the city; · Proposer’s financial condition and stability; · •Proposer’s ability to perform the work within the time specified; · •Proposer’s prior record of performance with City or other local, county or state agency; · •Proposer’s ability to provide future maintenance, repairs parts and/or services; and · •Proposer’s compliance with applicable laws, regulations, policies (including City Council policies), guidelines and orders governing prior or existing contracts performed by the contractor.

All committee members indicated that they were in unanimous agreement that based on an evaluation of relevant experience, proposed staffing approach, and proposed technologies, the proposal submitted by Serco (LAZ Parking) demonstrated the most complete understanding of the City’s RPP program. Upon vendor selection, and in subsequent additional contract Item 7
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negotiations, the City has secured the basis of contract terms presented in this current report, and originally approved by Council in March 2020 (CMR #10874), with minor updates added in the renewal terms, reflecting underlying cost increases reasonable to area cost of living increases.

As part of their services, LAZ is responsible for the recruitment of enforcement personnel, background checks and screening, final selection, and initial and on-going training of staff.

Training will include permit enforcement, issuance of citations, marking vehicles, customer service, and codes and ordinances related to parking enforcement in the area. Additionally, LAZ provides all personnel with uniforms, badges, ID tags, and transportation, including bicycles and clean vehicles. The employees are LAZ employees and not employees of the City of Palo Alto.

The Office of Transportation manages this contract to ensure that LAZ representatives are meeting program goals in terms of enforcement. LAZ Parking has been a communicative, flexible, and accountable partner. City staff unequivocally support extending their contract term to provide enforcement services and the cost savings their efforts have helped create.

ANALYSIS
The contract amendment will extend the existing contract with LAZ Parking for continued RPP parking enforcement. This contract amendment does not need additional funds because of reduced RPP parking enforcement during the COVID-19 pandemic. The amendment will use the remaining contract balance to fund approximately two more years of service (or whenever the contract balance is used up, whichever comes first).

FISCAL/RESOURCE IMPACT
The table below summarizes contract budget amount for each year of the three (3) year contract versus the amounts actually paid to the vendor per year. The significant difference in expense is attributed to the effects of COVID-19 and Council adoption of ALPR enforcement, resulting in significant savings in the parking citation services provided by LAZ.

Table: Contract Actuals versus Budgeted
Years 1:
3/24/2020-
3/23/2021
Years 2:
3/24/2021-
3/23/2021
Years 3:
3/24/2022-
3/23/2023 Total
Budgeted amount
(per contract)
$748,672 $771,132 $802,481 $ 2,322,285
Actuals (services invoiced by
vendor and paid by City)
$149,544 $316,328 $298,633 $ 764,505
Savings to be assigned
forward for use in years 4 &
5 of the contract
$599,128 $454,804 $503,848 $ 1,557,780
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Staff recommends extending the current contract for an additional two (2) years, making the contract with LAZ a five (5) year contract. The unspent amount of $1,557,780 shown in the table would fund years four (4) and (5), up to the value of the existing not-to-exceed amount.

Actual yearly cost depends on actual hours of enforcement, which can vary. The not to exceed amount of the would remain the same, $2,322,285.

It should be noted that the RPP fund does not operate at full cost recovery. Since FY 2014 approximately $1.4 million in General Fund subsidies have been required to maintain financial solvency of the RPP Fund, including a subsidy of $680,000 in FY 2020. In order to continue to support program operations and service levels, including the costs of this contract in subsequent years, additional revenue and/or General Fund support via a subsidy to the RPP Fund will be required. This will be discussed and addressed through the FY 2024 budget process.

The minor increases in cost for enforcement in the RPP areas are due to underlying area increases in labor and materials. Labor costs in the new contract are 7% higher than the last amendment of the prior contract, and each subsequent year of the new contract, the cost of labor has risen by 3%. Efficiencies achieved by the adoption of Automated License Plate Recognition technology, and the resulting updated staffing plans, though, provide the opportunity to extend this contract without increasing its not to exceed contract amount.

STAKEHOLDER ENGAGEMENT
Office of Transportation staff are in regular communication with RPP program customers and receive input and feedback from constituents on an ongoing basis, and can report that LAZ enforcement staff are fair professionals and a welcome addition to the City’s transportation sphere.

ENVIRONMENTAL REVIEW
The proposed actions are not a project under the California Environmental Quality Act (CEQA).

In the event the proposed actions are deemed a project under CEQA, they are exempt under CEQA regulation 15321 (Enforcement Actions by Regulatory Agencies).

ATTACHMENTS
Attachment A - Amendment No. 1 to Contract C20176367 with LAZ Parking for RPP Parking Enforcement to Extend Term two years through February 2025 with no additional funds APPROVED BY:

Philip Kamhi, Chief Transportation Official
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Vers.: Aug. 5, 2019

AMENDMENT NO. 1 TO CONTRACT NO. C20176367

BETWEEN THE CITY OF PALO ALTO AND

LAZ KARP ASSOCIATES, LLC

This Amendment No. 1 (this “Amendment”) to Contract No. C20176367(the “Contract” as defined below) is entered into as of February 1 6, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ( “CITY”), and LAZ KARP ASSOCIATES, LLC , a Connecticut Corporation, located at One Financial Plaza, 14th Floor, Hartford, Connecticut 06103.

CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. T he Contract (as defined below) was entered into by and between the Parties hereto for the provision of parking enforcement services for the Downtown Residential Preferential Parking (RPP) district (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”) as detailed therein.

B. T he Parties now wish to amend the Contract in order to extend the term, through February 28, 2025, at no added cost to the City, for a continuation of services, 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. C20176367 between CONSULTANT and CITY, dated March 24, 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 February 28, 2025, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement”

SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s ) to this Amendment, which is/ are hereby incorporated in full into this Amendment and into the Contract by this reference:

a. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS.

b. Exhibit “ C-1” entitled “ SCHEDULE OF RATES ”, AMENDED, REPLACES PREVIOUS.

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Attachment A - Laz Karp
Associates Contract,
C20176367 Amendment
#1

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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.

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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Associates Contract,
C20176367 Amendment
#1

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Vers.: Aug. 5, 2019 Page 3 of 9
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 ALTOCity Manager APPROVED AS TO FORM:City Attorney or designeeLAZ KARP ASSOCIATES, LLC Officer 1By: Name:Title:Officer 2 By: Name: Title:Attachments: EXHIBIT “C” entitled “COMPENSATION, AMENDMENT NO. 1” (AMENDED, REPLACES PREVIOUS) EXHIBIT “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO.1” (AMENDED, REPLACESPREVIOUS) Item 7
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Associates Contract,
C20176367 Amendment
#1

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EXHIBIT “C”

COMPENSATION
(AMENDED, REPLACES PREVIOUS)

The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1.

The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, 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.

Year One (3/1/2020 through 2/28/2021) Cost Not to Exceed $748,672; Actuals (Services Received) $149,544
Year Two (3/1/2021 through 2/28/2022) Cost Not to Exceed $771,132.00; Actuals (Services Received) $316,328
Year Three (3/1/2022 through 2/28/2023) Cost Not to Exceed $802,481.00; Actuals (Services Received) $298,633

Years One through Three actual compensation: $764,505
Years Four through Five expected compensation: $1,557,780 Year Four (3/1/2023 through 2/28/2024) Cost Not to Exceed $842,579 Year Five (3/1/2024 through 2/28/2025) Cost Not to Exceed $715,201

Total Compensation Remains at $2,322,285

Year 1 Year 2 Year 3 Year 4 Year 5 Total
Compensation
(original contract)
$748,672 $771,132 $802,481 $2,322,285
Actuals (services
received)
$149,544 $316,328 $298,633 $764,505
Unspent (Savings)

$599,128 $454,804 $503,848 $1,557,780
Compensation
(amendment for
years 4 & 5)
$842,579 $715,201 $1,557,780

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Attachment A - Laz Karp
Associates Contract,
C20176367 Amendment
#1

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Reimbursable Expenses None

Maximum Total Compensation $2,322,285.00

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: None

All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense shall be approved in advance by the CITY’s project manager.

ADDITIONAL SERVICES

The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the 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’s proposed maximum compensation, including reimbursable expenses, 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 the 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.

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Attachment A - Laz Karp
Associates Contract,
C20176367 Amendment
#1

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EXHIBIT “C-1”

SCHEDULE OF RATES
(AMENDED REPLACES PREVIOUS)

CONSULTANT shall be paid hourly for each officer and project manager that maintains a parking facility.

The tables below include the payment compensation schedule for the program including pre-defined pricing for implementation of the program. The compensation tables shall remain fixed for term of the contract.

Compensation Terms – Year 4-5

Compensation Terms – Year 4***
Labor Categories Est
Hours
Hourly
Rate
Extended
Rate
Project Manager – Direct Labor Rate 1,920 $54.79 $105,195 Overhead Rate (including Fridge, G&A and Fee) 1,920 $42.37 $81,346 Project Manager (fully burdened) 1,920 $97.16 $186,540
Parking Enforcement Officers – Direct Labor Rate 15,360 $21.63 $332,237 Overhead Rate (including Fringe, G&A and Fee) 15,360 $16.73 $256,919 Parking Enforcement Officer (fully burdened) 15,360 $38.36 $589,156 ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
supplies

N/A

$55,968
Burdens and Fee G&A N/A $10,915
ODCs and Materials (fully burdened) N/A $66,883
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
ODCs/Materials (all fully burdened)

N/A

$842,579
Compensation Terms – Year 5***

Labor Categories Est Hours Hourly
Rate
Extended Rate
Project Manager – Direct Labor Rate 1,600 $57.53 $92,048 Overhead Rate (including Fridge, G&A
and Fee)
1,600 $44.49 $71,184

Project Manager (fully burdened) 1,600 $102.01 $163,216 Parking Enforcement Officers – Direct
Labor Rate
11,520

$22.71 $261,619.2
Overhead Rate (including Fringe, G&A
and Fee)
11,520

$17.56 $202,291.2
Parking Enforcement Officer (fully
burdened)
11,520

$40.27 $463,910.4
ODCs/Materials to include:
bicycles/vehicles, uniforms, fuel,
cellphones, and other misc. supplies

N/A
$58,767
Burdens and Fee G&A N/A $11,460
ODCs and Materials (fully burdened) N/A $70,227
Item 7
Attachment A - Laz Karp
Associates Contract,
C20176367 Amendment
#1

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Vers.: Aug. 5, 2019

Project Manager (1), Parking
Enforcement Officers (7 FT PEOs + 1 FT
Supervisor) and ODCs/Materials (all fully
burdened)

N/A
$697,353.4

+Contingency N/A $17,847.60
Total N/A $715,201
***5% cost of living increase (based on Bay Area CPI 12/22)

Year 5 shall not exceed $715,201.00 or the remaining balance of the maximum total compensation under this Agreement, whichever is lower.

Item 7
Attachment A - Laz Karp
Associates Contract,
C20176367 Amendment
#1

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1 8
2 2
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: March 20, 2023
Report #:2303-1082
TITLE
Approval of Office of the City Auditor's Utility Work Order Process and Control Review Report

RECOMMENDATION
The Policy and Services Committee, City Auditor, and Staff recommend that the City Council approve the Utility Work Order Process and Control Review report.

BACKGROUND
Baker Tilly, in its capacity serving as the Office of the City Auditor (OCA), performed a citywide risk assessment that assessed a wide range of risk areas, including strategic, financial, operational, compliance, technological, and reputation risks. The purpose of the assessment was to identify and prioritize risks to develop the annual audit plan.

During the FY2021 risk assessment 1, the OCA identified a utility risk related to work order processes. With customers’ utility needs, it is vital that work order processes operate optimally.

DISCUSSION
The City of Palo Alto Utilities (CPAU) offers its residents and businesses a suite of utility services, including electricity, natural gas, water, and sanitary sewer (wastewater). All four utilities have a similar organizational structure around the work order process which includes designers, engineers, project utility coordinators, operations crew, and accountants who all play a vital role in ensuring that utility services are provided in a manner consistent with CPAU’s mission. Utility work orders include capital and customer work orders as well as maintenance jobs. The electric utility follows a slightly different process and uses different software systems than the water, gas, and wastewater utilities.
1 FY2021 risk assessment https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2021/id-11952.pdf Item 8
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1 8
2 2
The objectives of the Utility Work Order Process Review were to:
1) Determine whether adequate controls around the work order process are in place and working effectively
2) Assess the work order process against best practices To evaluate work order controls, audit testing was conducted on a sample of electric, water, gas and wastewater work orders.

The attached report summarizes the analysis, audit findings, and recommendations.

FISCAL/RESOURCE IMPACT
The corrective action plans and the timeline for implementation are identified within the attached report.

STAKEHOLDER ENGAGEMENT
The Office of the City Auditor worked primarily with Utilities Department and engaged with additional stakeholders, including the City Manager’s Office and the City Attorney’s Office, as necessary.

ATTACHMENTS
Attachment A: OCA - Utility Work Order Process and Control Review Report Item 8
Item 8 Staff Report

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1 City of Palo Alto
City Auditor's Office
Utility Work Order Process &
Control Review
August 9, 2022

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Attachment A - Utility
Work Order Process and
Control Review Report

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2 Executive Summary
Purpose of the Audit
The purpose of the audit was to gain an understating of the City's utility work order processes, evaluate the effectiveness of relevant internal controls and evaluate the City’s utility work order processes against best practices.

Report Highlights
Baker Tilly performed an analysis of the utilities work order processes and controls through sample- based testing, review of policy and procedure documentation and walkthroughs with key process owners. The “Audit Results” section of this report shows the detailed observations and recommendations based on our review. The following table highlights the four main recommendations (major themes) of these observations and recommendations.

Note: In practice, the City generally refers to capital and customer work orders as “service orders” and maintenance jobs as “work orders”. Throughout this report we will refer to both as “work orders” and will identify if we are only referring to one or the other.

Category/Theme Page Recommendation
Internal Approvals Pg. 7, 8 We recommend that all work orders (including O&M) be approved by someone that has budget responsibility or the ability to approve unbudgeted maintenance work. Any design changes made after the initial approval should be approved by an engineer or supervisor as changes in the field are a safety issue for service and could impact other areas that the field crew may not be aware of. Once the work order is complete, the supervisor should review all labor, materials, and 3
rd party invoices for accuracy and ensure any as-built
documentation is correct. All of the above reviews and approvals should be evidenced in writing.

System Utilization Pg. 8 We recommend the electric utility consider evaluating whether SAP has the capability to effectively track work orders to avoid using side systems. The electric utility should also evaluate whether implementing SoGen, the system used by the water, gas, and wastewater utilities to track work orders, would allow for easier, more accurate work order tracking. A system with the ability to schedule work orders based on priority will also ensure there is not unnecessary downtime or overburdening of worker time.

Palo Alto utilities should also consider developing an interface between the handheld devices used by the crew in the field and SoGen to eliminate duplicate processes and allow stakeholders access to the most up-to-date information as changes are being made in real time.

Recording &
Reconciling Assets
Pg. 7, 8 We recommend work orders be closed and capitalized monthly to prevent a backlog and to ensure depreciation starts immediately when the asset is placed in service. The utilities should perform a full system reconciliation of assets in AME and SoGen to ensure assets are accurately recorded. Assets in AME and SoGen should continue to be reconciled on an annual basis (or cycle counts can be performed monthly where a certain type of asset is counted each month). In addition, all reconciliations of the assets under construction account and asset accounts should be performed on a monthly basis to ensure monthly financials are accurate.

Key Performance
Indicators
Pg. 8 We recommend that the electric utility develop and track maintenance and construction KPIs simi lar to those tracked by the water, wastewater, and gas utilities. In addition, all utilities should consider developing additional KPIs as identified in Appendix D.

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Attachment A - Utility
Work Order Process and
Control Review Report

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3 Table of Contents
Executive Summary ........................................................................................................................................................... 2 Purpose of the Audit ..................................................................................................................................................... 2 Report Highlights ........................................................................................................................................................... 2 Objective........................................................................................................................................................................... 4 Background ..................................................................................................................................................................... 4 Scope................................................................................................................................................................................. 4 Compliance Statement.................................................................................................................................................. 4 Detailed Testing & Analysis ........................................................................................................................................ 5 Methodology & Approach ............................................................................................................................................ 5 Audit Testing ................................................................................................................................................................... 6 Audit Results ....................................................................................................................................................................... 7 Appendices .......................................................................................................................................................................... 9 Appendix A: Process Flowcharts .............................................................................................................................. 9 Appendix B: Sampled Work Orders ........................................................................................................................ 15 Appendix C: Current KPI’s for Water, Wastewater, and Gas – Selected Examples ................................... 16 Appendix D: Potential KPIs for Consideration ..................................................................................................... 19 Appendix E: Management Response ...................................................................................................................... 20

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Work Order Process and
Control Review Report

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4 Introduction

1 Government auditing standards require an external peer review at least once every three (3) years. The last peer review of th e Palo Alto Office of the City Auditor was conducted in 2017. The Palo Alto City Council approved a contract from October 2020 through June 2022 with Baker Tilly US, LLP (Baker Tilly) and appointed Kyle O’Rourke, Senior Consulting Manager in Baker Till y's Public Sector practice, as City Auditor. Given the transition in the City Audit office, a peer review was not conducted in 2020 and will be conducted after the third year of Baker Tilly’s contract. 0BObjective The purpose of the audit was to gain an understating of the City's utility work order processes, evaluate the effectiveness of relevant internal controls and evaluate the City’s utility work order processes against best practices.

1BBackground The City of Palo Alto Utilities (CPAU) offers its residents and businesses a suite of utility services, including electricity, natural gas, water, and sanitary sewer. The CPAU's mission statement is to "provide safe, reliable, environmentally sustainable and cost-effective services." Disruption in services can result in the CPAU's inability to meet its customer's needs and impact the reliability of its services.

All four utilities have a similar organizational structure around the work order process which includes designers, engineers, project utility coordinators, operations crew, and accountants who all play a vital role in ensuring that utility services are provided in a manner consistent with CPAU’s mission. The electric utility follows a slightly different process and uses different software systems than the water, gas, and wastewater utilities. The detailed processes around work orders for all utilities can be found in Appendix A of this report.

To ensure CPAU continues to meet its mission, and mitigate risks, the City engaged Baker Tilly to conduct an internal audit that would focus on current utility work order processes.

This decision was in conjunction with a broader, Citywide audit plan detailing the potential risks facing each department. Baker Tilly performed a citywide risk assessment that assessed a wide range of risk areas, including strategic, financial, operational, compliance, technological, and reputation risks. The purpose of the assessment was to identify and prioritize risks to develop the annual audit plan.

During the FY2021 risk assessment, Baker Tilly identified a utility risk related to work order processes. With customers’ utility needs, it is vital that work order processes operate optimally.

In order to properly assess the CPAU's work order processes, Baker Tilly reviewed a sample of electric, gas, water and wastewater work orders for compliance with internal processes and controls. We also evaluated the City’s utility work order processes against best practices. For additional details, please review the Detailed Testing & Analysis section.

2BScope The scope of this engagement includes work orders for the Electric and Wastewater, Gas and Water (WGW) departments opened between 1/1/21 and 2/21/22.

3BCompliance
Statement
This audit activity was conducted from January 2022 to May 2022 in accordance with generally accepted government auditing standards, except for the requirement of an external peer review
0F

1. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives.

The team at CPAU was very proactive and involved in the engagement that allowed for clear communication and support for Baker Tilly’s team. CPAU was always available to provide additional support and hands on explanations on the work order processes.

The Office of the City Auditor greatly appreciates the support of the CPAU in conducting this audit activity.

Thank you!
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Attachment A - Utility
Work Order Process and
Control Review Report

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5 Detailed Testing & Analysis
Methodology &
Approach
The objectives of the Utility Work Order Process Review are to:

(1) Determine whether adequate controls around the work order process are in place and working effectively
(2) Assess the work order process against best practices

Our review scope includes the following:

• Interview the appropriate individuals to understand the process, the information system used, and internal controls related to the work order process • Review policies and procedures as well as the regulations and standards to identify the criteria to be used for evaluation of control design and effectiveness • Perform a test of key internal controls on a sample basis • Compare the process and controls against best practices

To evaluate work order controls, audit testing was conducted on a sample of electric, water, gas and wastewater work orders. In addition, common work order best practices were identified and compared to the City’s utility work order processes identified in this audit.

Additional information regarding the testing approach and methodology can be found in the Audit Testing
section.

In order to properly evaluate the work order process and internal controls, the specific approach included the steps noted below.

Audit Planning
• Conduct research and gather information to understand the current environment • Assess audit risk
• Develop an audit planning memo and program
• Conduct kick-off meeting with key stakeholders
Control Review and Testing
• Gather information to understand the environment under review • Conduct interviews with key process owners and management • Assess risks and identify controls in place
• Perform testing of key controls around work orders
• Identify work order best practices and compare with current utility work order processes
Reporting
• Develop findings and recommendations based on supporting evidence • Validate documented findings
• Develop and validate a draft audit report
• Finalize report with management responses
• Review and finalize report with the City Council and/or appropriate Council Committee

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Work Order Process and
Control Review Report

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6 Audit Testing
Introduction In order to achieve the objectives of the engagement, Baker Tilly developed an audit testing approach and methodology that would test the design and operational effectiveness of controls and identify control gaps and unmitigated risks around utility work order processes.

Approach &
Methodology
In order to evaluate CPAU's control environment, Baker Tilly developed process flowcharts based on process documentation and interviews with key process owners. The process flowcharts were developed to document known risk, and mitigation practices based on CPAU's information and identify opportunities and improvement areas. In addition, the process flowcharts were used to facilitate the risk assessment and note the risks for the current work order processes, identify control gaps, and determine key risk and control areas for audit testing. The detailed process flowcharts can be found in Appendix A.

Sampling
Methodology
CPAU provided a list of all work orders opened from 1/1/2021 through 2/12/2022. Using the AICPA Statistical Sample Sizes for Test of Controls grid with the following parameters (90% confidence level, 9% tolerable rate of error, with 0% expected deviation) a sample size of 25 was established. Samples were selected using auditor judgment with a focus on ensuring a variety of work order types (differing utilities, capital vs. O&M). Because the work order process for the electric utility differs from the other utilities, we selected 12 electric work orders and 13 WGW work orders for our control testing. The work orders selected for detailed control testing can be found in Appendix B.

Additional
Review
In addition to testing sample work orders for the key controls currently in place, we also identified process and control improvement recommendations based on best practices. As part of the best practices review, we identified common work order best practices and compared them to the utilities’ current work order processes and controls. Best practices also include the use of Key Performance Indicators (KPIs). We identified common work order related KPIs and determined whether such KPIs were in use.

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Work Order Process and
Control Review Report

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7 Audit Results
During our process walkthroughs, we identified six key controls that Palo Alto currently has in place around the work order process. Some controls only apply to a certain utility or only apply to capital work orders. As such, not all controls are applicable for each of our sampled work orders. The controls tested, results of each test, and our recommendations for improvement are shown in the table below.

Control
# Control Description
# of sampled
work orders
where control
is applicable
# of
deficiencies Result Recommendation
1 All capital work orders
require supervisor approval
before work can be
performed.
21 3
Maintenance work for water, gas, and wastewater do not
require approval. Of the 21 sampled work orders that
currently require approval, 3 did not have appropriate
signature approval on the work order. All 3 were capital work orders.

We recommend that all work orders (including
O&M) be approved by someone that has
budget responsibility or the ability to approve
unbudgeted maintenance work. Approval
should be evidenced in writing.
2 For development services
projects, a permit must be
reviewed and approved
before work can begin.
10 0
10 of our sampled work orders were for development
services projects and all but one had an approved permit prior to work being performed.

None
3 For customer work orders,
customer payment must be
received before work can
begin.
9 0
9 of our sampled work orders were for customer services and all had customer payment received before work
began.

None
4 The Supervisor reviews the
completed work order and
as-built forms for accuracy.
25 5
2 of the 25 sampled work orders did not have a signature showing review of the completed work order. We also
noted 3 work orders that had a signature showing a
review was performed, however, there were costs which
were incorrectly recorded to the wrong work order
indicating the review may not be performed at a detailed enough level and could be improved.

The review performed by the Supervisor
should include review of all labor and
materials including 3rd party invoices to
ensure all costs are recorded to the correct
work order.
5 For electric work orders, the
Utility Coordinator
completes a checklist to
ensure all documents are
complete and included in
the job packet (control
implemented in August
2021).
5 0
Because this control was not implemented until August
2021 and only pertains to electric work orders, this
control only applied to 5 of the sampled work orders. All 5 work orders had a completed checklist.

We recommend the Utility Coordinator
complete a checklist to show review of
verifying completeness of work orders for all
utilities.
6 For closed capital work
orders, the assets were
recorded to an appropriate
plant account.
4 0
Costs are capitalized to the asset account on a quarterly basis. As such, only 4 of our sampled capital work orders were closed and recorded to the asset account at the
time of our testing. All 4 work orders appeared to be
recorded to an appropriate asset account (although not
all costs were included as noted in control number 4
above). Per Palo Alto, the additional costs will be
recorded in Q3 FY22.

We recommend work orders be closed and
capitalized monthly to prevent a backlog and
to ensure depreciation starts immediately
when the asset is placed in service.

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Process and Control Review Report

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8 In addition to the sample work order testing performed above, we have developed additional observations and recommendations based on our process walkthroughs with key process owners and compared to best practices. These are shown in the table below. # Category Observation Recommendation
1 System
Utilization
Although the water, wastewater, and gas utilities utilize SoGen to track work order progress, the electric utility utilizes SharePoint to share files and track work order status. Scheduling work is often done by the supervisor on a white board.

In addition, the operations team has handheld tablets in the field, however, these do not interface with SoGen and they have found that it is easier to handwrite all workorder information manually on paper forms. These paper forms are then given to the utility coordinator to be entered into SoGen, duplicating the data entry function.

We recommend the electric utility consider evaluating whether SAP has the capability to effectively track work orders to avoid using side systems. The electric utility should also evaluate whether implementing SoGen, the system used by the water, gas, and wastewater utilities to track work orders, would allow for easier, more accurate work order tracking. A system with the ability to schedule work orders based on priority will also ensure there is not unnecessary downtime or overburdening of worker time.

Palo Alto utilities should also consider developing an interface between the handheld devices and SoGen to eliminate duplicate processes and allow stakeholders access to the most up-to-date information as changes are being made in real time.
2 Design Changes
Currently, only major field changes require approval from the engineering supervisor and that approval is oftentimes provided verbally.

Any design changes should be approved by an engineer or supervisor.

Changes in the field are a safety issue for service and could impact other areas that the field crew may not be aware of. All approvals should be evidenced in writing.
3 Recording Asset
Additions &
Retirements
For water, gas, and wastewater, the asset additions and retirements that the Business Analyst provides to the Accountant for recording is a report from the SoGen system. These costs are settled to accounts in SAP. The Business Analyst indicated that assets may not have been recorded accurately in the past and that AME should be the system of record when recording asset additions and retirements. If assets are not recorded appropriately, financial, and other reporting becomes less reliable.

We recommend that the utilities perform a full system reconciliation of assets in AME and SAP to ensure assets are accurately recorded. Assets in AME and SAP should continue to be reconciled on an annual basis (or cycle counts can be performed monthly where a certain type of asset is counted each month). This reconciliation should be documented and signed-off on.
4 Asset
Reconciliations
Asset reconciliations are performed on a quarterly basis. No review of the reconciliation is performed by a separate individual.

In addition, the reconciliation process is very manual with the accountant manually entering in numbers instead of using formulas to add the next periods numbers.

All reconciliations should be performed on a monthly basis to ensure monthly financials are accurate. All reconciliations should be reviewed for accuracy by another individual. This review should be evidenced in writing.

In addition, Palo Alto should consider using more formulas in the reconciliation to reduce the risk of errors that can be caused by manually entering in numbers.
5 Key Performance
Indicators
The water, wastewater, and gas utilities currently utilize key performance indicators (KPIs) to assist with monitoring their performance around project management and operations. An example of some of the KPIs currently being used are shown in Appendix C. It is our understanding that these same KPIs are currently being developed for the electric utility.

We agree that the electric utility would benefit from developing similar KPIs that the water, wastewater, and gas utilities currently use. In addition, the utilities may want to consider adding additional KPIs related to work orders and project management. Example KPIs that the City may want to begin tracking are shown in Appendix D.

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Attachment A - Utility Work Order
Process and Control Review Report

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9 Appendices
Appendix A: Process Flowcharts
Below are the process flowcharts developed to identify risks and key controls.

Palo Alto
Engineer/
EstimatorDesignerUtility
Coordinator
Engineer
ManagementOperations Customer
Service
Electric Service Order Process
Process Note ControlRisk
Start
Creates Service
Order
SAP
Designs Service
Order and
uploads to SAP
Approves
service order
with design
and estimate
Assigns Work
center
1 2
Requests
service order
Email
AUD
Service Order
approved?
Makes
required
changes
No
Customer
Service Order?
Sends invoice
to customer
Releases
Service Order
SAP
Yes
SAP
No
Reviews
Service Order
packet for
completeness
3 SAP
Works with
assigned team to
schedule &
manage jobs in
queue
6 4
AUD
Crew/ group
goes to field
Obtains approval
and updated
drawing from
Engineer
Work different
from Design?
Completes
work
Yes
No
5 78
A
1 1
3 3
Share
Point Share
Point
S.O. Pkg
Once, payment
received,
Releases
Service Order
Share
Point
Yes
SAP
Invoice
2 2

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Process and Control Review Report

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10 Palo Alto
Mapping GroupUtility Coordinator Operations SupervisorSenior Accountant Electric Service Order Process
A
Process Note ControlRisk
Reviews As-
Builts and asset
forms
Reviews
Package &
uploads to
SharePoint
Reviews
Service Order
for accuracy
Updates GIS for
As-Builts
9 GIS
Settles all
Service Order
costs to g/l
accounts

SAP SAP
11 Capital
Project?
Quarterly, runs
report of all
closed work
orders
Yes
Unitizes all
costs to asset
accounts
End
12 Closes Service
Order
No
SAP

SAPSAP SAP
4 4 5 5
6 6
7 7
8 8
IW39
Puts forms in
Package &
forwards to
Coordinator
Package
S.O. Pkg.

Closes Work
Order (TECO)
SAP
Closes Service
Order
SAP
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Process and Control Review Report

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11 1. When creating the service order, the Engineer identifies it as either capital or maintenance and includes the general ledger accounts the costs should be applied to. The Engineer includes the cost estimate when creating the service order.

2. The Designer includes a Material Release Date in SAP (either June or December) to ensure that the warehouse doesn’t pull materials prematurely.

3. The Service Order Package is signed using DocuSign. The Senior Engineer can approve projects up to $50,000 as long as there are funds in the budget. Projects over this amount need to follow the authority levels shown below:

Up to $50,000 – Senior Engineer
Up to $150,000 – Manager
$150,000 and over – Engineering Manager

4. The service order is released in SAP and SharePoint.

5. The Utility Coordinator verifies that all required information is included and checked off in SAP and SharePoint including the service order type, materials, design/drawings, and the customer payment (if applicable).

6. The Utility Coordinator updates the work center in SAP which designates the group/crew the service order is assigned to. They also change the order status to “open” in SharePoint and indicate the date the service order is assigned. The Utility Coordinator updates the materials date in SAP if not already shown. The group/crew will update the material date when ready so the warehouse knows the materials are needed.

7. The group/crew examine the field conditions before work can be scheduled. For customer service orders, the operations team works directly with the customer to schedule the work.

If it is a customer service job with underground work, it goes to the underground Inspection group. There would be an update in SAP showing the inspection is complete.

8. If the change is small, the crew can just make the change. If it is a major change, they call the Engineer for approval and an updated drawing/map.

9. The Operations Supervisor reviews and approves all crew time and ensures they charged the correct service order. They also review all materials and third party invoices for accuracy and that all associated costs are being charged against order (e.g. Crane Rental or PCard/credit card purchases).

10. The Utility Coordinator uses a checklist to ensure all documentation is included in the service order package including map changes.

11. Labor, materials, and overheads are posted to either an O&M account or to Construction in Progress. Service orders are held open for 6 weeks to ensure all costs have been applied.

12. AUD automatically creates an Excel report that shows all additions and retirements when added by the mapping group . These are stored on the network so the Senior Accountant can retrieve the report and unitize the assets.

Process Notes
Risks
Controls

1. Work is performed that is not approved.

2. Work may be scheduled before customer payment is received.

3. The crew may change the design without approval which could cause unsafe materials or designs.

4. Labor and materials may be charged to the incorrect service order.

5. The As-Builts may be incorrect if design changes were made in the field.

6. The service order may be closed without proper documentation of completeness.

7. The GIS mapping system may not display the correct assets in the electric system.

8. Asset additions and retirements may not be recorded or may be recorded to the wrong account.

1. All service orders are reviewed and approved by the Senior Engineer prior to work being performed.

2. Customer Service will not release a service order until the customer payment has been received.

3. For major changes, the crew receives approval from the Lead Engineer and receives updated job drawing(s) to reflect changes.

4. The Operations Supervisor reviews and approves all employee timecards and ensures the correct service order was charged. They also review material charges to the service order for accuracy.

5. The Operations Supervisor ensures that the As-Builts match the work that was performed.

6. The Utility Coordinator uses a checklist to ensure all documents are included in the service order package including any map changes.

7. All asset additions and retirements are updated in EEM & GIS to accurately track all electric assets.

8. The Senior Accountant is provided a listing from Engineering showing all asset additions and retirements to ensure proper unitization.

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Process and Control Review Report

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12 Palo Alto
Engineer/
EstimatorDesignerUtility
Coordinator
Engineer/
Operations
Management
Operations Development
Services
Water/Gas/Wastewater Service Order Process
Process Note ControlRisk
Start
Creates Service
Order
Designs Service
Order and
uploads to SAP
Approves
service order
as designed
4 Requests
service order
Email
AME
Service Order
approved?
Makes
required
changes
No
Releases
Service Order
SAP
Prints and reviews
Service Order
package for
completeness
5 Works with
assigned team to
schedule &
manage jobs in
queue
6 AME
Crew/ group
goes to field
Obtains approval
and updated
drawing from
Engineer
Work different
from Design?
Completes
work
7 9
A
3 3
4 4
S.O. Pkg
Once, payment
received,
Releases
Service Order
2 2
Development
Service order?
Yes
Reviews and
approves
permit
application
Creates and
sends invoice
to customer
SAP
SOGen
No
Yes
SOGen
SOGen
SAP
SAP
SOGen SAP
1 1 3
Creates Service
Order
O&M service
order?
Yes
Yes
8 SOGen
SAP
No
2 1
Customer
payment
required?
Yes
No
No

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13 Palo Alto
Mapping GroupUtility Coordinator Operations
SupervisorSenior Accountant
Water/Gas/Wastewater Service Order Process
A
Process Note ControlRisk
Reviews
Package &
uploads to
SOGen
Reviews
Service Order
for accuracy
Updates GIS for
As-Builts
10 AME
Settles all
Service Order
costs to g/l
accounts
12 Capital
Project?
Quarterly, runs
report of all
closed work
orders
Yes
Unitizes all
costs to asset
accounts
End
13 Closes Service
Order
No
SAP

SAPSAP SAP
5 5
6 6
7 7
8 8
IW39
S.O. Pkg
S.O. Pkg.

Closes Work
Order (TECO)
Closes Service
Order
SAP
11 Sogen

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14 1. Anyone in operations can request a service order for maintenance work.

2. The Development Services Engineer reviews the utilities application, request for service including number of meters, construction plans indicating location of services and meters. The Engineer signs off on his review in ACCELA, the permit tracking system.

3. Development Services receives an automated report from SAP daily that shows all payments received.

4. When creating the service order, the Engineer identifies it as either capital or maintenance and includes the general ledger accounts the costs should be applied to. The Engineer includes the cost estimate when creating the service order.

5. The Service Order Package is signed using DocuSign. The Senior Engineer can approve projects up to $50,000 as long as there are funds in the budget. Projects over this amount need to follow the authority levels shown below:

Up to $50,000 – Senior Engineer
$50,000 and above – Manager

6. The service order is released in SAP and SOGen.

7. The Utility Coordinator verifies that all required information is included and checked off in SAP and SOGen including the service order type and the design/drawings. They also change the order status to “Ops Inspection” in SOGen and indicate the date the service order is assigned.

8. The group/crew examine the field conditions before work can be scheduled. For customer service orders, the operations team works directly with the customer to schedule the work.

If it is a service order for new construction, it goes to the Inspector.

9. If the change is small, the crew can just make the change. If it is a major change, they call the Engineer for approval and an updated drawing/map. It is very rare to have a redesign.

10. The Operations Supervisor reviews the service order to ensure that labor and materials are properly recorded and that the As-Builts match the work that was completed.

11. The Utility Coordinator reviews the service order package to ensure all forms are filled out and that maps, photos, and tags are all included.

12. All service orders are closed quarterly in SAP.

13. The Utility Coordinator runs a report of all additions and retirements out of Sogen monthly and emails it to the Accountant to record additions and retirements. For capital improvement projects (CIP), the Engineer provides the Accountant with an Excel spreadsheet that lists the asset additions and retirements to record.

Process Notes
Risks
Controls

1. A service order may be created without an approved permit in place.

2. Work may be scheduled before customer payment is received.

3. Work is performed that is not approved.

4. The crew may change the design without approval which could cause use of incorrect materials or designs.

5. A service order may be closed without the appropriate labor, materials, and assets being recorded.

6. The service order may be closed without proper documentation of completeness.

7. The GIS mapping system may not display the correct assets in the w/g/w system.

8. Asset additions and retirements may not be recorded or may be recorded to the wrong account.

1. All permits are reviewed and approved before a service order is created.

2. Development Services will not release a service order until the customer payment has been received.

3. All service orders for new construction are reviewed and approved by the Senior Engineer prior to work being performed.

4. For major changes, the crew receives approval from the Lead Engineer and receives updated job drawing(s) to reflect changes.

5. The Operations Supervisor reviews the service order to ensure all labor and materials have been recorded. They also ensure that the As-Builts on the service order match the work that was performed.

6. The Utility Coordinator ensures all documents are included in the service order package including any map changes. They also ensure all required checkboxes and forms are complete.

7. All asset additions and retirements are updated in AME to accurately track all assets.

8. The Senior Accountant is provided a report from Sogen by the Utility Coordinator showing all asset additions and retirements to ensure proper unitization. The Engineer provides a schedule showing the asset additions and retirements for CIP project.

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15 Appendix B: Sampled Work Orders

Sample # Order Type Order Type Description Order Total Actual Costs WBS Element Project Description
1 UERE Electric Reconstruction 40026477 33,909.46$ EL-89044 Substation Facility 2 UGRE Gas Reconstruction 40026573 33,819.98$ GS-11002 Gas System Improveme 3 UECS Electric Customer Service 40026526 30,181.68$ EL-89028 Electric Customer Co 4 UWRE Water Reconstruction 40026411 24,021.92$ WS-80014 Water Hydrant and Va 5 USRE Wastewater Reconstruction 40026713 12,408.03$ WC-80020 Sewer System, Custom 6 UCM Utilities Corrective Maintenance Order 50037259 12,029.75$ 7 UECS Electric Customer Service 40026572 10,215.60$ EL-89028 Electric Customer Co 8 UCM Utilities Corrective Maintenance Order 50037518 10,094.45$ 9 UWCS Water Customer Service Order 40026530 8,935.45$ WS-80013 Water System, Custom 10 USRE Wastewater Reconstruction 40026744 7,614.81$ WC-80020 Sewer System, Custom 11 UWCS Water Customer Service Order 40026680 7,573.37$ WS-80013 Water System, Custom 12 UGCS Gas Customer Service Order 40026407 7,328.00$ GS-80017 Gas System, Customer 13 UECS Electric Customer Service 40026776 7,015.39$ EL-89028 Electric Customer Co 14 UERE Electric Reconstruction 40026628 6,900.10$ EL-19004 Wood Pole Replacemen 15 UCM Utilities Corrective Maintenance Order 50037558 6,747.60$ 16 UCM Utilities Corrective Maintenance Order 50036962 5,711.71$ 17 UERE Electric Reconstruction 40026983 5,333.24$ EL-19004 Wood Pole Replacemen 18 UECS Electric Customer Service 40026585 4,748.07$ EL-89028 Electric Customer Co 19 UGCS Gas Customer Service Order 40026403 2,958.42$ GS-80017 Gas System, Customer 20 USCS Wastewater Customer Service Order 40026836 2,169.98$ WC-80020 Sewer System, Custom 21 UERE Electric Reconstruction 40026798 2,076.36$ EL-98003 Electric System Imp 22 USCS Wastewater Customer Service Order 40026535 1,932.45$ WC-80020 Sewer System, Custom 23 UERE Electric Reconstruction 40026835 12,439.56$ EL-19004 Wood Pole Replacemen 24 UERE Electric Reconstruction 40026868 10,781.31$ EL-19004 Wood Pole Replacemen 25 UGRE Gas Reconstruction 40024105 113,840.40$
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16 Appendix C: Current KPI’s for Water, Wastewater, and Gas – Selected Examples

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19 Appendix D: Potential KPIs for Consideration

KPI Description Calculation
Emergency Work
This is a measure of how much unplanned
emergency work your maintenance
department does.

Emergency Hours Worked / Total Hours
Planned vs Unplanned
This measure is a good indicator of how
reactive a work team is, and how much
unscheduled work is breaking into the work
schedule.

Sum of Scheduled Work Completed
(Hours) / Sum of All Work Completed
(Hours) x 100
Schedule Compliance
Measure of planning and scheduling quality,
whether the work plan is realistic and
achievable. It is a good indicator of
maintenance effectiveness, whether they are
able to complete the work allocated to them.

Sum of Scheduled Work Completed
(Hours) / Sum of Scheduled Hours x 100
Maintenance Overtime Measure of the health of your maintenance organization.

Maintenance Overtime / Total
Maintenance Hours Paid
Work order Cycle Time
The objective is to understand how long it
takes to complete work, from creation to
completion.

Work Order Completion Date – Work
Order Creation Date (in days)
Customer Satisfaction
The objective is to score and track how
happy your customers are with their service,
product, and/or experience. Example: “How
would you rate your recent experience with
our operations team?” The customer is given
a 5-point scale from very unsatisfied to very
satisfied.

The total sum of customers who
answered with “satisfied” (4) and “very
satisfied” (5).

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20 Appendix E: Management Response
Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan
We recommend that all work orders (including O&M) be approved by someone that has budget responsibility or the ability to approve unbudgeted maintenance work. Approval should be evidenced in writing.

Utilities Concurrence: Agree
Target Date: August 2022
Action Plan: Capital and customer service work order packets are prepared by an Estimator/Engineer and approved by Senior Engineer/Supervisor. In Operations all work orders are prepared at the direction of Supervisor, by a Project Coordinator, the work order packet is given to the Supervisor for distribution to the crews. At present, a signature is not required before handing the job packet to the crews.

Utilities will add the step requiring the Supervisors to initial the work orders at the time the paperwork is handed off to the crews.

The review performed by the Supervisor should include review of all labor and materials including 3rd party invoices to ensure all costs are recorded to the correct work order.

Utilities Concurrence: Agree
Target Date: August 2022
Action Plan: WGW Operations has a checklist when closing work orders and Electric Operations recently implemented one in August of 2021. In the current process, the Supervisor/Leads forwards the invoices to administrative staff to process the payment. To ensure all items are posted against the order, the Supervisor/Lead will include all invoices for services, labor (charge time), materials in the project closing packet for the Project Coordinator’s review. The Project Coordinator then becomes the initiator, rather than the Supervisor/Leads, for processing invoice payments.

We recommend the Utility Coordinator complete a checklist to show review of verifying completeness of work orders for all utilities.

Utilities Concurrence: Agree
Target Date: August 2022
Action Plan: WGW Operations has a checklist when closing work orders and Electric Operations recently implemented one in August of 2021.

The Project Coordinators will use the checklist to verify labor, materials, and 3rd party invoices have been charged to the order before closing the order.

We recommend work orders be closed and capitalized monthly to prevent a backlog and to ensure depreciation starts immediately when the asset is placed in service.

Utilities & ASD Concurrence: Partially Agree
Target Date: December 2022
Action Plan: Settlement of costs, closing of work orders and reconciliation of Construction in Progress are done on a monthly basis.

The reconciliation reports are saved on the network at quarter ending Item 8
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21 Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan
since capitalization are done on the same period. Working with limited staff in both Utilities Operations and Accounting, monthly capitalization is time consuming and not practical. Although it ensures depreciation will start immediately when asset is placed in service, depreciation is still considered a low risk assessment since it is a non-cash item and the depreciation amount is relatively immaterial compared to the total asset base. However, we recognize monthly capitalization is the best practice and will evaluate the feasibility of implementing the process.

We recommend the electric utility consider evaluating whether SAP has the capability to effectively track work orders to avoid using side systems. The electric utility should also evaluate whether implementing SoGen, the system used by the water, gas, and wastewater utilities to track work orders, would allow for easier, more accurate work order tracking. A system with the ability to schedule work orders based on priority will also ensure there is not unnecessary downtime or overburdening of worker time.

Palo Alto utilities should also consider developing an interface between the handheld devices and SoGen to eliminate duplicate processes and allow stakeholders access to the most up-to-date information as changes are being made in real time.

Utilities Concurrence: Partially Agree
Target Date: Ongoing
Action Plan: Utilities staff plans to evaluate a mobile work management application that will address the needs of all its utilities and utilize one utility operations application to compliment SAP.

Background:

Utilities explored using the scheduling feature in SAP and found that the task was too cumbersome and customizing SAP to accommodate the various utilities was cost prohibitive for an organization of our size and with different needs for each of the five utilities. The scheduling function in SAP has not changed since we first implemented in 2004 and with the different types of assets and maintenance and construction requirements for all utilities, the scheduling module is not feasible. At present, SoGen is not the ideal application to be used in the field nor for Electric Operations to adopt. It is a stand-alone application that serves as an intermediary to capture work details such as location, activity, labor, and materials.

In staff’s experience, best of breed utility applications are more operationally efficient and cost effective than customizing SAP.

The department is continually keeping an eye out for mobile work management applications. Some recent examples are:
• In February 2019 through September 2019, Utilities attempted to bring SoGen mobile. The mobile application lacked a good drawing tool to allow staff to update maps while in the field and encountered critical data discrepancies.
• In 2019, staff piloted a mobile workforce management system (SMW) through Smart Energy Systems for both WGW and
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22 Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan
Electric Operations in an effort to provide a mobile platform for some of the work groups.
• In late 2020, the Wastewater maintenance group implemented a new maintenance application through SEDARU which provides a mobile platform.
• Utilities kicked off the Advanced Metering Infrastructure project in FY 2022, which is a multi-year project ending in 2025. Utilities will evaluate purchasing a 3rd-party mobile application used by the vendor installing the meters and integrating with SAP. Staff is currently working with the vendor to explore and design the product for use post-implementation.
• The Utilities is currently reviewing and implementing mobile applications through ArcGIS Enterprise with Esri.

Any design changes should be approved by an engineer or supervisor.

Changes in the field are a safety issue for service and could impact other areas that the field crew may not be aware of. All approvals should be evidenced in writing.

Utilities Concurrence: Partially Agree
Target Date: Complete (June 2022)
Action Plan: As the auditor noted, it is the City’s current practice to send back major design changes to Engineering for approval. The Leads on- site are trained and empowered to use independent judgment in the field for minor field changes that did not require engineering such as, moving the service alignment a couple of feet to accommodate field conditions when necessary. These changes are documented on the redlined as- builts drawings or work orders, signed by the Leads or Supervisors, then sent to mapping to capture the accurate alignment of the new services.

These minor changes to slightly move the alignment of new services do not create any safety concerns to the utility infrastructure, because all installation work must comply with Building Code and Utility Standards.

We recommend that the utilities perform a full system reconciliation of assets in AME and SAP to ensure assets are accurately recorded.

Assets in AME and SAP should continue to be reconciled on an annual basis (or cycle counts can be performed monthly where a certain type of asset is counted each month). This reconciliation should be documented and signed-off on.

Utilities & ASD Concurrence: Agree
Target Date: June 2023 (estimated)
Action Plan: Utilities will prepare a report by fund and asset for Accounting to perform a full system reconciliation between AME and SAP to ensure assets are accurately recorded. Since there are over 16,000 records and 7,000,000 assets, the system reconciliation effort will require at least one staff member dedicated to this project for a year. The tasks may include troubleshooting discrepancies, documenting business processes, and facilitating workshops between ASD and Utilities. Due to Item 8
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23 Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan
staffing shortages in Accounting and various financial deadlines and projects, early estimate for completing the reconciliation is one year.

To determine the amount of time and effort necessary to completely reconcile all records and assets, Accounting will reconcile one fund first and provide a better target completion date at the next update.

All reconciliations should be performed on a monthly basis to ensure monthly financials are accurate. All reconciliations should be reviewed for accuracy by another individual. This review should be evidenced in writing.

In addition, Palo Alto should consider using more formulas in the reconciliation to reduce the risk of errors that can be caused by manually entering in numbers.

ASD Concurrence: Agree
Target Date: Complete (June 2022)
Action Plan: Settlement of costs, closing of work orders and reconciliation of Construction in Progress are done on a monthly basis.

The reconciliation reports are saved on the network at quarter ending since capitalization are done on the same period.

The Senior Accountant will review reconciliation performed. Accounting has created a template to incorporate use of formulas to conduct reconciliation. In certain cells where a copy and paste from SAP is possible, no formula will be utilized.

We agree that the electric utility would benefit from developing similar KPIs that the water, wastewater, and gas utilities currently use. In addition, the utilities may want to consider adding additional KPIs related to work orders and project management. Example KPIs that the City may want to begin tracking are shown in Appendix D.

Utilities

Concurrence: Agree
Target Date: 12/31/2022
Action Plan: Electric Operations has a few KPI’s mapped out and are actively working on developing the dashboards. Staff anticipates completing them by the end of the year.

Electric Operations will incorporate the following KPIs by the end of the year:

Maintenance Work
New Construction/CIP Work
Customer Service Work
Inspections
Emergency Work/3rd Party Damages

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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: March 20, 2023
Report #:2303-1093
TITLE
SECOND READING: Ordinance Prohibiting Possession of Firearms in Sensitive Places. CEQA Status – Exempt Under CEQA Guidelines Section 15061(b)(3). (FIRST READING: March 6, 2023 PASSED 7-0)

RECOMMENDATION
Staff recommends the City Council adopt the attached ordinance prohibiting firearms in sensitive places on second reading. As directed by Council on March 6, 2023, the ordinance has been updated since it was first introduced to apply to any building within the geographic boundaries of the City that is owned or leased by a public entity other than the City for the purposes of government administration, where the public entity that owns or leases the property has authorized the City to enforce the prohibition on said property.

BACKGROUND
On March 6, 2023, the City Council considered emergency and standard ordinances prohibiting the possession of firearms in certain sensitive places. The Council adopted the emergency ordinance as written and adopted the standard ordinance with one change: in addition to City property, the ordinance was to include the property of other units of government with their authorization. The relevant portion of the draft motion as it appears in the draft minutes is:

1. Adopt an emergency ordinance prohibiting the carrying of firearms in sensitive places recognized by the Supreme Court.

2. Adopt a standard ordinance prohibiting the carrying of firearms in sensitive places recognized by the Supreme Court, with the inclusion of other governmental properties, with their authorization.

PASSED: 7-0.

Staff have updated the ordinance accordingly and recommend adopting the ordinance as attached on second reading.

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ENVIRONMENTAL REVIEW
Adoption of the attached ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that there is no possibility of a significant adverse impact on the environment.

ATTACHMENTS
Attachment A: Ordinance Prohibiting Possession of Firearms in Sensitive Places APPROVED BY:

Lesley Milton, City Clerk
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Attachment A
*NOT YET APPROVED*
0002_20230307_ms29 1
Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Prohibiting the Carry of Firearms in Sensitive Places

The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and Declarations. The City Council finds and declares as follows:

A. The City of Palo Alto has a compelling interest in protecting and the health and safety of the public and the orderly functioning of government within its bounds.

B. The incidence of firearm -related fatalities and injuries has reached alarming and unacceptable proportions at the national , state, and local level, as described in a report by the Santa Clara County Department of Public Health, “Cost of Gun Violence in Santa Clara County ” (Aug. 12, 2022), which notes th at the age -adjusted firearm death rate in Santa Clara County was 4.8 people per 100,000 in 2020, the highest rate in the past decade.

C. According to the Gun Violence Archive ( https://www.gunviolencearchive.org ),
California experienced 369 mass shootings (defined as an incident that kills or injures four or more people) between 20 14 and January 2023. In Santa Clara County, mass shooting tragedies have included May 26, 2021, at the VTA railyard in San Jose (10 dead including the shooter); July 28, 2019, at the Gilroy Garlic festival (4 dead including the shooter, 17 wounded); Oct. 5, 2011, at the Lehigh Cement Plant in Cupertino (3 dead, 7 wounded); and Feb 16, 1988 at ESL Inc. in Sunnyvale (7 dead, 4 wounded).

D. Previously, California law required applicants for permits to carry a concealed weapon to demonstrate “good cause” for the issuance of the license. The United States Supreme Court recently held, in N.Y. State Rifle & Pistol Ass’n v. Bruen (2022), 142 S.

Ct. 2111, that such “good cause” requirements are unconstitutional under the Second and Fourteenth Amendments . This development in the law will likely result an increase in concealed carry permits issued in California.

E. The U.S. Supreme Court has said that laws prohibiting the carrying of firearms in certain “sensitive places,” including “schools and government buildings,” and “legislative assemblies, polling places, and courthouses,” may be consistent with the Second Amendment. N.Y. State Rifle & Pistol Ass’n v. Bruen (2022), 142 S. Ct. 2111; D.C. v. Heller (2008), 554 U.S. 570.

F. Through this Ordinance, the City Council desires to prohibit the carry of firearms in sensitive places, including by those who are licensed to carry a concealed weapon , Item 9
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Prohibiting the Carry of
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Places

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Attachment A
*NOT YET APPROVED*
0002_20230307_ms29 2
consistent with the Supreme Court’s guidance in N.Y. State Rifle & Pistol Ass’n v.

Bruen.

SECTION 2. City Manager Authorization

The City Manager or his or her designee(s) may promulgate guidelines and implement regulations regarding permits described in this Ordinance as long as such regulations do not conflict with this Ordinance or the Palo Alto Municipal Code.

SECTION 3. New section 9.08.030 is hereby added to Chapter 9.08 (Guns and Explosives) of Title 9 (Public Peace, Morals, and Safety) to read as follows:

9.08.030 Carry of Firearms in Sensitive Places

A. Purpose and intent. The purpose of this section is to protect sensitive places that have traditionally been subject to restrictions on carrying or possessing firearms, consistent with the Supreme Court’s guidance in N .Y. State Rifle & Pistol Ass’n v. Bruen (2022), 142 S. Ct. 2111 ; to protect health, life, and property within the city; and to preserve the order and security of the City, its inhabitants, and its visitors.

B. Prohibition. Except as otherwise provided by federal or state law, no person shall carry a firearm in any sensitive place unless they are su bject to an exemption under subsection (d) of this section. This prohibition applies to persons licensed to carry a concealed firearm.

C. For the purposes of this section, “sensitive place” means any of the following:

i. Any building owned by or under the control of City government for the purpose of government administration;

ii. Any building within the geographic boundaries of the City that is owned or leased by a public entity other than the City for the purposes of government administration, where the public entity that owns or leases the property has authorized the City to enforce this prohibition on said property;

iii. Any polling place while voting is occurring;

iv. Any school. For the purposes of this section, “school” includes all institutions that provide preschool, elementary, secondary, post -secondary, technical, or trade or vocational education, and includes all athletic facilities, offices, cafeterias and eating establis hments, health care facilities, research facilities, parking lots, and shared rooms and common areas of dormitories thereof. “School” does not include a private residence at which education is Item 9
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Attachment A
*NOT YET APPROVED*
0002_20230307_ms29 3
provided for children who are all related to one another by blood, marriage, or adoption.

D. Exemptions. This section shall not apply to:

i. A federal, state, or local law enforcement officer when such person is authorized to carry a concealed weapon or a loaded firearm under state law or under 18 U.S.C. Section 926B or any successor legislation;

ii. An honorably retired officer or agent of a law enforcement agency, when authorized to carry a concealed or loaded weapon under state law or 18 U.S.C. Section 926C;

iii. A security guard or messenger of a financial institution, a guard of a contract carrier operating an armored vehicle, a licensed private investigator, a patrol operator, an alarm company operator, or security guard, when such persons are authorized by applicable state or federal law to carry a firearm and when such persons are engaged in the exercise of their official duties;

iv. A person bringing or transporting an unloaded firearm onto city property to exchange, transfer, or relinquish it to law enforcement, in compliance with any city operated, approved, or sponsored program to purchase, exchange, or otherwise obtain voluntary relinquishment of firearms;

v. A person lawfully possessing an unloaded firearm in the locked trunk of, or inside a locked container in, a motor vehicle.

vi. A hunter with a valid hunting license when going to or returning from a legal hunting expedition; provided, however, that when transiting through any area where firearms are prohibited, any firearm is safely stored in a locked container or otherwise secure d using a firearm safety device as defined by California Penal Code Section 16540 or any successor legislation.

E. Penalties. Any person violating any of the provisions of this section shall be guilty of a misdemeanor punishable as set forth in Chapter 1.0 8 of the Palo Alto Municipal Code.

SECTION 4. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

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*NOT YET APPROVED*
0002_20230307_ms29 4
SECTION 5. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment.

SECTION 6. This ordinance will become effective on the thirty -first day after the date of its adoption

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ City Attorney City Manager

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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: March 20, 2023
Report #:2303-1094
TITLE
SECOND READING: Adopt a Park Improvement Ordinance to Allow Construction in Greer Park to Replace a Private Sewer Connection from the 2850 W. Bayshore Housing Development; CEQA status – Class 32 infill exempt. (FIRST READING: March 6, 2023 PASSED 7-0)

BACKGROUND
This was heard by the City Council on March 6, 2023 for a first reading and was approved 7-0.

No changes were made to the Ordinance; it is now before you for a second reading.

ATTACHMENTS
Attachment A: Ordinance Approving and Adopting a Plan for Sewer Line Replacement APPROVED BY:

Lesley Milton, City Clerk
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ORDINANCE NO. _____
Ordinance of the Council of the City of Palo Alto Approving and Adopting a Plan for Sewer Line Replacement at Greer Park The Council of the City of Palo Alto does ORDAIN as follows:

SECTION 1. Findings and Improvements. The City Council finds and declares that:
(a) Article VIII of the Charter of the City of Palo Alto and section 22.08.005 of the Palo Alto Municipal Code require that, before any substantial building, construction, reconstruction or development is commenced or approved, upon or with respect to any land held by the City for park pu rposes, the Council shall first cause to be prepared and by ordinance approve and adopt a plan therefor. (b) Greer Park (the “Park”) is dedicated to park purposes. ( See Municipal Code section

22.08.010)
(c) The City intends to authorize a sewer replacement that runs underneath Greer Park as part of the private development project at 2850 W. Bayshore Road. (d) The developer of 2850 W. Bayshore will be responsible for the plan of construction below.
(e) The plan of construction shall comprise as follows:
(1) Install a new sewer line in the location specified in Exhibit A. (2) Shrubs along the fence line between the W. Bayshore parcels and Greer Park will be removed and replaced with native species.
(3) Sections of the dog park fence will be temporarily removed and replaced. (4) Turf affected by the construction will be replaced. (5) Park pathways will be replaced or rehabilitated.
(f) This plan is an alternative to replacin g the existing sewer line which runs under Field 3 in Greer Park in an existing easement. Replacing the existing sewer line in its existing configuration would create more impacts to Field 3, both during construction and after construction is over, including the need for a ground-level manhole cover in Field 3. This alternative eliminates the manhole cover altogether and reduces construction impacts to existing users of Field 3. (g) The City Council desires to approve the plan of improvements described above.

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

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Approving and Adopting a
Plan for Sewer Line
Replacement

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SECTION 3. This ordinance serves only to satisfy the requirement in PAMC section

22.08.005 (Ordinance required for substantial building, construction, etc.) and its related provision in Article VIII (Parks) of the City Charter. This ordinance does not itself create, substitute for, or waive any requirement to secure an easement, land use approval, building permit, encroachment permit, or any other land use entitlement or permit.

SECTION 4. The City Council has found this project exempt under the Class 32 categorical exemption under CEQA on June 20, 2022.

SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM: APPROVED:

Assistant City Attorney City Manager
Director of Community Services
Item 10
Attachment A - Ordinance
Approving and Adopting a
Plan for Sewer Line
Replacement

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Exhibit A
(see next page)
Item 10
Attachment A - Ordinance
Approving and Adopting a
Plan for Sewer Line
Replacement

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Trench + work zone (Approximate)
(trench 5' wide, shored)
Access Routes (Approximate)
(See notes below)
NOTES:
> Work area around each pit. No equipment withing 10' of shored wall per OSHA.
> Work area roughly a 50' wide zone to allow for truck/excavator/loader traffic to and from the work zone. Can be adjusted to protect trees.

Approximate Limits of Soccer Field
 
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: March 20, 2023
Report #:2303-1095
TITLE
SECOND READING: Adoption of an Ordinance amending Chapter 16.52 (Flood Hazard Regulations) to Correct an Error in Ordinance 5566. Environmental Assessment: Not a Project. (FIRST READING: March 6, 2023 PASSED 7-0)

BACKGROUND
This was heard by the City Council on March 6, 2023 for a first reading and was approved 7-0.

No changes were made to the Ordinance; it is now before you for a second reading.

ATTACHMENTS
Attachment A: Ordinance Amending Ch 16 Flood Hazard Regulations APPROVED BY:

Lesley Milton, City Clerk
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Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Amending Chapter 16.52, Flood Hazard Regulations to Correct an
Administrative Error

SECTION 1. Section 16.52.130 (Standards of Construction) of Chapter 16.52 (Flood Hazard Regulations) of Title 16 (Building) of the Palo Alto Municipal Code is amended to read as follows (additions underlined, deletions struck through, and omissions of unchanged language noted by [. . .]):

16.52.130 Standards of construction.

In all areas of special flood hazards the following standards are required:

[. . .]

(b) Construction Materials and Methods.

(1) All new construction and substantially improved structures shall be constructed with flood-resistant materials as specified in applicable Federal Emergency Management Agency t Technical b Bulletins, including but not limited to TB 2- 93, and utility equipment
resistant to flood damage.

[. . .]

(c) Elevation and Floodproofing.

(1) In residential new construction and substantial improvement of any residential structure, the lowest floor, including basement:

(A) In an AO zone, shall be elevated to height equal to or exceeding to a height above
the highest adjacent grade of not less than the depth number specified in feet on the Flood Insurance Rate Map plus 1 foot, or not less than 3 feet above the highest adjacent grade if no depth number is specified;

[. . .]

SECTION 2. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment.

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Attachment A - Ordinance
Amending Ch 16 Flood
Hazard Regulations

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SECTION 3. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning and
Development Services

____________________________
Director of Public Works

____________________________
Director of Administrative Service

Item 11
Attachment A - Ordinance
Amending Ch 16 Flood
Hazard Regulations

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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: March 20, 2023
Report #:2303-1100
TITLE
Review and Revision of the Council Procedures and Protocols Handbook – Focus on Protocols – Including Consideration of Policy and Services Committee Recommended Changes

RECOMMENDATION
Continued discussion of the City Council Procedures and Protocols Handbook (“the Handbook”) with particular focus on the Protocols portion of the Handbook. This is a follow up discussion to the January 30, 2023 discussion of the Procedures portion of the Handbook. The full City Council discussed the Handbook on December 19, 2022 and January 30, 2023. This report below contains information from the December 19, 2022 and January 30, 2023 staff reports and notes from the January 30th discussion that may be of assistance to the City Council.

BACKGROUND AND ANALYSIS
The full background on this item is available in the January 30, 20231 staff report related to the City Council direction to staff in June 2021 to revise and reorganize the Handbook for clarity and ease of use and to update the Handbook to conform with law and current City Council practice. The attached drafts reflect reorganization, updates to conform with law and practice, and policy changes only for the Protocols Portion of the Handbook since the City Council approved tentative agreements for the entire Procedures Portion of the Handbook on January 30, 2023.

Staff continues to make those cleanups as directed by the City Council on January 30, 2023.

Since there are a few policy questions still outstanding on the Procedures Portion of the Handbook (listed below), staff will bring draft language for those sections of the Handbook back at a future date.
1 January 30, 2023 Meeting Agenda and related items:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1121 (The Handbook Discussion was Item 4; Report and Action and Summary Minutes are available through the link here).

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For the Protocols Portion of the Handbook of the reorganized Handbook, there are topics that the Policy and Services Committee and full Council flagged for further Council discussion in the Protocols Portion of the Handbook (Attachments A and B) related to the following topics:

1. Parameters for the voting delegate at conferences (such as League of California cities)

2. Council conduct with other public agencies

3. Use of letterhead

4. Use of staff time – 1 hour rule

5. *Role clarity for Council board/commission liaison (Protocols Section 2.8) The Policy and Services Committee agreed upon language for most of the topics listed above and that language is included in the Attachments A and B. The item above with an * is the one exception on the topic of the role of the Council liaison to Boards and Commissions, where the Policy and Services Committee asked that the City Council refer that item back to Policy and Services for further discussion in 2023 in order to involve the chairpersons of Boards and Commissions.

The last topic that has been unresolved in the Protocols Portion of the Handbook is the Protocols Section 4 Travel Section. Since the December 19, 2022 Handbook discussion, staff reviewed the Handbook travel section and compared it to the citywide travel policy (Attachment C). It appears that the two documents are similar except for the reference on reimbursement for the use of a private bicycle. Given the similarity in content, staff recommends the City Council consider simply referencing the citywide travel policy in place of the existing text in Protocols Section 4. If this general direction is amenable to the Council, the Council could direct incorporation of language to clarify additional guidance for Council members travel activities such as the following:
“Councilmember travel expenses and reimbursements will adhere to Citywide Travel Arrangements and Expense Reimbursement Policy (Administrative Policy 1-02/ASD) with the following amendments:

1. The limit on how many times a Councilmember can travel in a year with reimbursement will be ______.

2. For international travel, any Mayoral or City Council international travel expenses related to Sister Cities will have _______ covered by the City.

3. Councilmember travel will be approved by ________.”
Staff maintained the page numbers from the January 30th Protocols Portion of the Handbook in Attachments A and B to minimize confusion. Similar to the January 30th discussion, staff recommends that Council consider the Protocols Portion of the Handbook section by section, discussing any issues or concerns and tentatively voting to either adopt the section as drafted or direct staff to prepare additional revisions, before going on to the next section. If the Council Item 12
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has directed additional language to be prepared, staff will return to the Council at a subsequent meeting for adoption of the Handbook including the few additional Procedures follow ups referenced earlier in this report.

FISCAL/RESOURCE IMPACT
Staff and the copy editor will further clean up the Handbook (formatting and page numbers) upon adoption by the City Council and upload the document online.

STAKEHOLDER ENGAGEMENT
Staff solicited suggested changes from the City Council over the course of this process regarding desired changes to the Handbook. Continued discussion will occur at the March 20, 2023 City Council meeting with particular focus on the Protocols portion of the Handbook.

ENVIRONMENTAL REVIEW
This is not considered a project as defined by CEQA and no review is required.

ATTACHMENTS
Attachment A: Clean Copy of 12.14.22 Council Procedures and Protocols Handbook (PROTOCOLS PORTION ONLY)
Attachment B: Redlined Copy of 12.14.22 Council Procedures and Protocols Handbook (PROTOCOLS PORTION ONLY)
Attachment C: Citywide Travel Policy (update 2-2-2016)
APPROVED BY:

Ed Shikada, City Manager
Primary Author: Chantal Cotton Gaines, Deputy City Manager Item 12
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DRAFT – Dec. 14, 2022
1 DRAFT FOR REVIEW As of Dec. 14, 2022
(Less Redlined)

CITY COUNCIL

PROCEDURES AND PROTOCOLS

HANDBOOK
Procedures and Protocols Approved 02/01/2020 with New Table of Contents Structure for Review
If yo
u have any questions about this handbook, please feel free to contact the City Clerk by phone at (650) 329-2571 and e-mail at [email protected] or the City Attorney by phone at (650) 329-2171 and e-mail at [email protected].

ITEM 4
Attachment A- Clean Copy of

12.14.22 Council Procedures and
Protocols Handbook
Item 4: Page 5 Packet Page 45 of 175
Protocols Portion
only for March
2023 Discussion
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City Council Protocols and Procedures Handbook

36 PART II: CITY COUNCIL PROTOCOLS
The citizens, businesses and organizations of the city are entitled to have fair, ethical and accountable local government, which has earned the public’s full confidence for integrity. To this end, the City Council has adopted Council Protocols and this Code of Ethics for members of the City Council to assure public confidence in the integrity of local government and its effective and fair operation.

Section 1 – City Council Conduct (exist. Protocol Section 2)

1.1. Positive Work Place Environment
Members shall support the maintenance of a positive and constructive work place environment for City employees and for citizens and businesses dealing with the City. Members shall recognize their special role in dealings with City employees to in no way create the perception of inappropriate direction to staff.

1.2. Comply with Law
Members shall comply with the laws of the nation, the State of California and the City in the performance of their public duties. These laws include but are not limited to: the United States and California constitutions, the city Charter, laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities and open processes of governments and City ordinances and policies.

A. Respect for Process
Members shall perform their duties in accordance with the processes and rules of order established by the City Council governing the deliberation of public policy issues, meaningful involvement of the public and implementation of policy decisions of the City Council by City staff.

1.3. City Council Core Responsibilities (exist. Protocol Sec. 1) All members of the City Council, including those serving as Mayor and Vice Mayor, have equal votes. No Council Member has more power than any other Council Member, and all should be treated with equal respect.

All Council Members:

A. Demonstrate honesty and integrity in every action and statement B. Comply with both the letter and spirit of the laws and policies affecting the operation of government.

C. Serve as a model of leadership and civility to the community D. Inspire public confidence in Palo Alto government
E. Work for the common good, not personal interest
F. Prepare in advance of Council meetings and be familiar with issues on the agenda G. Fully participate in City Council meetings and other public forums while demonstrating respect, kindness, consideration, and courtesy to others H. Do not politicize procedural matters such as minutes approval or agenda order for strategic purposes
ITEM 4
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12.14.22 Council Procedures and
Protocols Handbook

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City Council Protocols and Procedures Handbook

37 I. Participate in scheduled activities to increase Council effectiveness J. Review Council procedures, such as these Council Protocols, at least annually K. Represent the City at ceremonial functions at the request of the Mayor L. Be responsible for the highest standards of respect, civility and honesty in ensuring the effective maintenance of intergovernmental relations
M. Respect the proper roles of elected officials and City staff in ensuring open and effective government
N. Provide contact information to the City Clerk in case an emergency or urgent situation arises while the Council Member is out of town

1.4. General Member Conduct
Councils are composed of individuals with a wide variety of backgrounds, personalities, values, opinions, and goals. Despite this diversity, all have chosen to serve in public office in order to improve the quality of life in the community. In all cases, this common goal should be acknowledged even as Council may "agree to disagree" on contentious issues.

A. Conduct of Members
The professional and personal conduct of members must be above reproach and avoid even the appearance of impropriety. Members shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other members of the Council, boards and commissions, the staff or the public. Rude and unprofessional behavior are also unacceptable.

B. In Public Meetings (exist. Protocol 2.1)
1) Use Formal Titles
The Council should refer to one another formally during Council meetings as Mayor, Vice Mayor or Council Member followed by the individual’s last name.

2) Practice Civility and Decorum in Discussions and Debate.

Difficult questions, tough challenges to a particular point of view, and criticism of ideas and information are legitimate elements of a free democracy in action. Be respectful of diverse opinions.

3) Honor the Role of the Presiding Officer in Maintaining Order and Equity.

Respect the Chair's efforts to focus discussion on current agenda items. Objections to the Chair's actions should be voiced politely and with reason, following the parliamentary procedures outlined in the City Council Procedural Rules.

4) Demonstrate Effective Problem-Solving Approaches.

Council members have a public stage to show how individuals with disparate points of view can find common ground and seek a compromise that benefits the community as a whole.

Council members are role models for residents, businesspeople and other stakeholders involved in public debate.

5) Be Respectful of Other People's Time.

Stay focused and act efficiently during public meetings.

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City Council Protocols and Procedures Handbook

38 C. In Private Encounters
Treat Others as You Would Like to be Treated.

Ask yourself how you would like to be treated in similar circumstances, and then treat the other person that way.

1.5. Decisions Based on Merit
Members shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations.

1.6. Advocacy
A. Representation of Private Interests
In keeping with their role as stewards of the public interest, members of Council shall not appear on behalf of the private interests of third parties before the Council or any other board, commission or proceeding of the City, nor shall members of boards and commissions appear before their own bodies or before the Council on behalf of the private interests of third parties on matters related to the areas of service of their bodies.

B. Advocacy
Members shall represent the official policies or positions of the City Council, board or commission to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, members shall explicitly state they do not represent their body or the City, nor will they allow the inference that they do.

C. Council Voting Delegate Authority at Conferences / Annual Meetings The Council may authorize a Council member to act as the voting delegate at conferences or meetings of other bodies, including, but not limited to, the League of California Cities annual conference, National League of Cities conference, and the Association of Bay Area Governments (ABAG) annual meeting. Prior to the conference / meeting, the Council may provide the voting delegate with specific direction on proposed resolutions and other matters. When provided specific direction, the voting delegate’s authority is limited to matters on which the Council has directed the delegate to vote.

1.7. Council Conduct with City Staff
Governance of a City relies on the cooperative efforts of elected officials, who set policy, and City staff, which analyze problems and issues, make recommendations, and implement and administer the Council’s policies. Therefore, every effort should be made to be cooperative and show mutual respect for the contributions made by each individual for the good of the community.

A. Treat All Staff as Professionals
Clear, honest communication that respects the abilities, experience, and dignity of each individual is expected. As with your Council colleagues, practice civility and decorum in all interactions with City staff.

B. Channel Communications through the Appropriate Senior City Staff ITEM 4
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City Council Protocols and Procedures Handbook

39 Questions of City staff should be directed only to the City Manager, Assistant City Manager, City Attorney, City Clerk, Assistant City Clerk, City Auditor, Senior Assistant City Attorneys, or Department Heads. The Office of the City Manager should be copied on any request to Department Heads. Council members should not set up meetings with department staff directly, but work through Department Heads, who will attend any meetings with Council members. When in doubt about what staff contact is appropriate, Council members should ask the City M anager for direction. However, nothing in these protocols is intended to hinder the access Council-appointed liaisons (e.g. to the San Francisquito JPA or NCPA) may require in order to fulfill their unique responsibilities.

D. In order to Facilitate Open Government, All Council Members Should Make Decisions with the Same information from Staff on Agendized or Soon- to be- Agendized Items (Items on the Tentative Agenda or in a Council Committee)

E. Never Publicly Criticize an Individual Employee, Including Council Appointed Officers. Criticism is differentiated from questioning Facts or the opinion of staff.

All critical comments about staff performance should only be made to the City Manager through private correspondence or conversation. Comments about staff in the office of the City Attorney, City Auditor or City Clerk should be made directly to these CAOs through private correspondence or conversation.

F. Be Cautious in Representing City Positions on Issues Before sending correspondence related to a legislative position, check with City staff to see if a position has already been determined. When corresponding with representatives of other governments or constituents remember to indicate if appropriate that the views you state are your own and may not represent those of the full Council.

As a Council member, it is important to remember to indicate when the views you state are your own versus views which represent those of the full Council. This is relevant whether sending correspondence related to a legislative position or corresponding with constituents or representatives of other governmental agencies or organizations.

In the case where the Council has appointed a Council member to serve on a regional governing body to represent the interests of the entire region, the Council member serving on that regional body should clearly state if they are representing the City or the regional board or commission in their positions.

G. Do Not Attend Staff Meetings Unless Requested by Staff Even if the Council member does not say anything, the Council member’s presence may imply support, show partiality, intimidate staff, or hampers staff’s ability to do its job objectively.

H. Depend upon the Staff to Respond to Citizen Concerns and Complaints It is the role of Council members to pass on concerns and complaints on behalf of their constituents. It is not, however, appropriate to pressure staff to solve a problem in a particular way. Refer citizen complaints to the appropriate senior staff member, according to the protocol on channeling communications. The senior staff member should respond according to the Policy ITEM 4
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City Council Protocols and Procedures Handbook

40 and Procedure for Responding to Customer Complaints. Senior staff is responsible for making sure the Council Member knows how the complaint was resolved.

I. Do not Solicit Political Support from Staff
The City Charter states that “Neither the city manager or any other person in the employ of the city shall take part in securing or shall contribute any money toward the nomination or election of any candidate for a municipal office.” In addition, some professionals (e.g., City Manager and the Assistant City Manager) have professional codes of ethics, which preclude politically partisan activities or activities that give the appearance of political partisanship. Council members should avoid any staff interactions that may be construed as trying to shape staff recommendations to be presented to the Council as a whole.

J. Use of Public Resources
Members shall not use public resources, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes.

J. Use of City Letterhead
Official Mayor/City Council letterhead should only be used for correspondence signed by the Mayor or City Council members when specifically directed by the Council or consistent with prior City Council direction. This applies to the use of any stationery that could be interpreted as official letterhead.

1.8. Use of Staff Time

A. Do Not Get Involved in Administrative Functions (exist. Protocol 2.3 E) The key provisions on Council-staff relations found in section 2.04.170 of the Palo Alto Municipal Code:

“Neither the council nor any of its committees or members shall direct, request or attempt to influence, either directly or indirectly, the appointment of any person to office or employment by the city manager or in any manner interfere with the city manager or prevent the city manager from exercising individual judgment in the appointment of officers and employees in the administrative service. Except for the purpose of inquiry, the council and its members shall deal with the administrative service solely through the city manager, and neither the council nor any member thereof shall give orders to any of the subordinates of the city manager, either publicly or privately.”

B. Respect the “One Hour” Rule for Staff Work
Requests for staff support should be made to the appropriate senior staff member, according to the protocol for channeling communications. Any request, which would require more than one hour of staff time to research a problem or prepare a response, will need to be approved by the full council to ensure that staff resources are allocated in accordance with overall council priorities.

Once notified that a request for information or staff support would require more than one hour, the Council Member may request that the City Manager place the request on an upcoming Council agenda. The 1-hour rule applies to all Council members equally.

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12.14.22 Council Procedures and
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City Council Protocols and Procedures Handbook

41 * * *

SECTION 2 - City Council Conduct with Palo Alto Boards and Commissions

The City has established several Boards and Commissions as a means of gathering more community input.

Citizens who serve on Boards and Commissions become more involved in government and serve as advisors to the City Council. They are a valuable resource to the City’s leadership and should be treated with appreciation and respect. Council members serve as liaisons to Boards and Commissions, according to appointments made by the Mayor, and in this role are expected to represent the full Council in providing guidance on Council processes or actions to the Board or Commission. Refrain from speaking for the full Council on matters for which the full council has not yet taken a policy position. In other instances, Council members may attend Board or Commission meetings as individuals, and should follow these protocols:

2.1. If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions.

Council members may attend any Board or Commission meeting, which are always open to any member of the public. Any public comments by a Council Member at a Board or Commission meeting, when that Council Member is not the liaison to the Board or Commission should make a point to clearly state it is an indiv idual opinion and not a representation of the feelings of the entire City Council.

2.2. Refrain from Lobbying Board and Commission Members.

It is inappropriate for a Council member to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Council members to contact Board or Commission members in order to clarify a position taken by the Board or Commission.

2.3. Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Council Members.

The City Council appoints individuals to serve on Boards and Commissions, and it is the responsibility of Boards and Commissions to follow policy established by the Council. Council members should not feel they have the power or right to unduly influence Board and Commission members. A Board and Commission appointment should not be used as a political reward.

2.4. Concerns about an Individual Board or Commission Member Should be Pursued with Tact.

If a Council member has concerns with a particular Board or Commission member fulfilling his or her roles and responsibilities and is comfortable in talking with that individual privately, the Council member should do so. Alternatively, or if the problem is notresolved, the Council Member should consult with the Mayor, who may address the issue to the Council as appropriate.

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City Council Protocols and Procedures Handbook

42 2.5. Be Respectful of Diverse Opinions.

A primary role of Boards and Commissions is to represent many points of view in the community and to provide the Council with advice based on a full spectrum of concerns and perspectives. Council members may have a closer working relationship with some individuals serving on Boards and Commissions but must be fair to and respectful of all citizens serving on Boards and Commissions.

2.6. Keep Political Support Away from Public Forums.

Board and Commission members may offer political support to a Council member, but not in a public forum while conducting official duties. Conversely, Council m embers may support Board and Commission members who are running for office, but not in an official forum in their capacity as a Council member.

2.7. Maintain an Active Liaison Relationship.

Appointed Council liaisons or alternates are encouraged to attend all regularly scheduled meetings of their assigned Board or Commission.

2.8 Role of Council Liaison to Board or Commission
The role of Council liaison to a Board or Commission is to share prior Council discussions and actions on issues as applicable, and assist the Board or Commission in understanding likely Council perspectives on issues as well as how the Board o r Commission might support Council decision-making.

* * *

SECTION 3 - STAFF CONDUCT WITH CITY COUNCIL

3.1. Respond to Council Questions as Fully and as Expeditiously as is Practical The protocol for staff time devoted to research and response is in application here. If a Council Member forwards a complaint or service request to a department head or a Council Appointed Officer, there will be follow-through with the Council Member as to the outcome.

3.2. Respect the Role of Council Members as Policy Makers for the City Staff is expected to provide its best professional recommendations on issues. Staff should not try to determine Council support for particular positions or recommendations in order to craft recommendations. The Council must be able to depend upon the staff to make independent recommendations. Staff should provide information about alternatives to staff recommendations as appropriate, as well as pros and cons for staff recommendations and alternatives

3.3. Demonstrate Professionalism and Non-Partisanship in all Interactions with the Community and in Public Meetings

3.4. It is Important for the Staff to Demonstrate Respect for the Council at all Times. All Council members Should be Treated Equally
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43 * * *

THIS SECTION UNDER REVIEW To be
reviewed in 2023

SECTION 4 - CITY COUNCIL AND BOARDS AND COMMISSIONS POLICY FOR TRAVEL AND

MISCELLANEOUS EXPENSE REIMBURSEMENT
This policy is set by the City Council and applies to Council m embers and to Board and Commissions members, who will be referred to as “Officials” in the policy. In reimbursing travel and miscellaneous expenses, a municipal purpose requiring the expenditure of public funds must be in evidence; also, in accord with the Charter and Municipal Code, such expenditures must be from authorized appropriations.

4.1. Eligible Activities
The following activities (“Eligible Activities”) are recognized by the Council as advancing municipal purposes and are eligible for expense reimbursement, subject to limitations on activities and specific and total expenditures described elsewhere in this policy:

A. Communicating with representatives of regional, state and national government on adopted city policy positions;

B. Attending educational seminars designed to improve officials’ skill and information levels;

C. Participating in regional, state and national organizations whose activities affect the City’s interest;

D. In collaboration with City staff, implementing a city-approved strategy for attracting or retaining businesses to the City.

All other expenditures require prior approval by the City Council at a regular or special meeting.

4.2. Out-of-Town Conferences or Meetings
A. Reimbursement
All payments for travel and meetings shall be on the basis of either reimbursement of expenses advanced by the Council Member/Official or payments made directly to travel agencies/websites, hotels, airlines or the organization sponsoring the meeting. All requests for payments or reimbursements must be accompanied by invoices or paid detailed receipts and a copy of descriptive literature about the conference or meeting. The City Clerk, Mayor or Chair for Officials must approve, in advance, individual travel requests for out -of-town meetings and conferences, e.g., Annual League of California Cities Conference, National League of Cities Conference, etc., including Eligible Activates.

Allowable expenses for local or Bay Area Eligible Activates do not require prior approval by the Mayor or Chair.

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44 The total reimbursement shall not exceed the budget adopted by the Council for this purpose.

All reimbursements shall comply with the limits of Policy and Procedures 1 -02 (Citywide Travel Policy).

Expense reports should be submitted within 30 days of end of trip. Inability to provide such documentation in a timely fashion may result in expense being borne by the Council Member or Official.

• Meals
The City will provide a per diem (“per day”) allowance for meals and incidentals to Council members or Officials who are approved to travel overnight for official City business. Council members or Officials will receive a flat rate for meals and will not be required to submit receipts.

The per diem rate varies and is dependent on the destination of travel. The rates for the various travel destinations are available on the U.S. General Services Administration website (http://www.gsa.gov/portal/content/104877). When meals are provided at an event, the value of that meal will be deducted from the daily per diem rate. Travelers will receive 75% of the daily per diem amount on days requiring transportation to and from the location (i.e., departure day and return day) regardless of departure and arrival times. Meals provided on days of travel shall be deducted at full-value.

C. Lodging Expense
Council members or Officials shall select single occupancy, standard, non-deluxe accommodations and should stay at hotels offering economical lodging rates. When possible, travelers attending a conference or seminar should stay at conference hotels, which offer a negotiated rate.

The City will not reimburse any cost related to the extension of a hotel stay beyond the time necessary to complete the event. An out-of-state trip involving cross-county travel may require hotel accommodations both before and after the conference or training.

Within California and adjoining states, an extra night’s hotel stay should not be necessary if flight arrangements can be made the same day.

The use of hotels is restricted to cities located beyond 50 miles (one-way) from the City of Palo alto or the traveler’s residence (whichever is shortest). For example, if the destination is Sacramento and you live in Palo Alto (118 miles) or Oakland (81 miles), you would qualify for a hotel (and per diem for meals). However, if you live in Vacaville (35 miles) or Lodi (36 miles) you would not qualify for a hotel.

Expenses incurred for guests of the traveler and the like are not reimbursable.

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45 Incidental expenses related to City business shall be reimbursed at cost as supported by submitted receipts. Incidental expenses may include hotel parking charges, Internet connection services, and telephone charges.

The actual costs for parking will be reimbursed when approval to use a personal vehicle or rental car is obtained in advance. Council m embers or Officials should use the lowest cost alternative for parking within a reasonable area from the destination. Internet connection services purchased to conduct City business are reimbursable. Other charges on the hotel bill, such as pay-TV movies, cleaning, laundry, room service charges or charges for additional guests are not reimbursable.

D. Transportation
1) Air Transportation
Council members or Officials shall fly economy class on the lowest flight available for the most direct route to the final destination, which could reasonably include scheduled layovers. Council Members or Officials are encouraged to make air reservations as early as feasible to obtain the greatest discount and to consider the use of alternate but nearby airports to take advantage of the lowest fares. Extension of the trip to cover a weekend stay to obtain a lower airfare does not entitle the Council Member or Official to be reimbursed for the extra day’s hotel.

Council members or Officials may use City travel to qualify for frequent flyer credits, but the selection of an airline for a given trip shall not be made for the purpose of accumulating such credits. Council members or Officials that choose to use their personal frequent flyer miles for City business shall not be reimbursed for the value of the tickets. If the airline charges for all checked baggage, the City will cover the cost for one checked bag only. Excess baggage charges are not reimbursable.

2. Rental Cars
Rental cars shall be approved if other ground transportation, such as shuttles or taxis, is more expensive during the stay at the destination. Only economy or compact car models may be rented unless an upgrade is provided by the rental agency at no additional cost. Because the City is self -insured, Council m embers or Officials should decline any additional insurance offered by the rental company. Council members or Officials must also decline the Fuel Purchase Options (which allows for prepayment of a gas tank refill) and shall refuel prior to returning the rental car. Rental car options such as GPS devices and any other extra optional charges are not reimbursable.

The use of a rental car, in lieu of a private auto, to travel to and from an out-of-town event will be reimbursed either at the current IRS mileage rate or the car rental cost apportioned for the number of days used for City business, whichever is less.

3. Private Automobiles
Private automobiles may be used for personal or group transportation on extended trips.

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46 Reimbursement shall be made at the current IRS mileage rate. The distance to be reimbursed shall be measured from the place of work and from the employee’s home, and the calculated mileage reimbursement shall be based upon which of the two distances is shorter. Mileage reimbursement for private automobiles shall not exceed the cost of round trip air transportation (economy class) for a reservation made at least seven days in advance of the trip.

4.3. Local or Bay Area Activities
Council members or Officials who have been requested or designated to represent the City may receive the actual cost of:

A. Meals, if they are a scheduled feature of the activity, e.g., SCCCA dinner meetings.

B. Registration fees where applicable.

C. Mileage if activity is outside the City (mileage claims should be submitted monthly, with details: date and type of meeting, number of miles traveled to be indicated), consistent with City Policy and Procedures 1-02.

D. Council members and Officials may be reimbursed by the City for use of a private bicycle to attend local or Bay Area activities outside the City of Palo Alto consistent with City Policy and Procedures 2-9.

4.4. Other Expenses
Ethics Training Expenses – AB1234 requires ethics training every two years and such fee and related expenses are eligible for reimbursement.

4.4. Activities Not Considered Reimbursable
A. Voluntary attendance at any conference or meeting, not representing the City.

Meetings of social or service organizations.

B. Meetings of voter groups or with individual citizens concerned with agenda items.

• Election campaign activities.

• Alcohol and entertainment expenses.

• Personal portion of the trip and other non-mileage automobile expenses.

4.6. Reports to Council
Council members and officials shall provide brief verbal reports on meetings attended at the City’s expense at the next regular Council/Board/Commission meeting. If multiple Officials attended, a joint report may be made. All related documents are subject to the Public Records Act and can be periodically reviewed by auditors.

4.7. Violation of This Policy
Use of public resources or falsifying expense reports is in violation of this policy and may result in ITEM 4
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47 any or all of the following:

- Loss of reimbursement privileges
- A demand for restitution to the City
- The City reporting the expenses as income to the elected or appointed Official to state and federal tax authorities
- Civil penalties of up to $1000 per day and three times the value of the resources used - Prosecution for misuse of public resources

4.8. Mayor and Vice Mayor Additional Compensation
The Mayor shall receive $150 monthly and the Vice Mayor $100 monthly to defray additional expenses of these offices.

4.9. Support Services
The City Clerk’s Office makes travel arrangements for Council members. This service includes conference registration, hotel reservations, per diem advances and reimbursement of unforeseen expenses. The department liaison for each board and commission will be responsible for arrangements for Officials.

4.10. Miscellaneous Expenditures
New Language: Miscellaneous Expenditures

Existing Language
None
Proposed New Language (updated after Dec. 13 P&S Discussion) X.1 Expenditure of City Council Contingency Funds
Expenditures from the City Council Contingency budget must be directed by Council motion, either via a colleagues memo or as part of an agendized item.

X.2 City Purchase of Tickets or Sponsorship of Non-Profit Organization Events the City Manager may purchase tickets or sponsor events by non-profit organizations, subject to budget availability, under any of the following circumstances:

1. where the event serves a City educational purpose,

2. recognition for work done by staff (not including elected or appointed officials), or

3. expending budget allocations specifically intended for event attendance.

x.3 Expenditure for Annual Holiday Event
Expenditures from the Council special event budget may be directed to be expended for an annual holiday celebration, subject to budget availability for attendance by Council members, executive leadership staff and community leaders. Event details will be coordinated by the Mayor and facilitated by staff.

* * *

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48 SECTION 5 - Confidentiality, Conflicts of Interest, Gifts And Favors Members shall respect the confidentiality of information concerning the property, personnel or affairs of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests. There are many State laws regarding confidentiality, conflicts of Interest, and gifts and favors. Council members should stay apprised of and comply with State law on these topics.

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DRAFT – Dec. 14, 2022
1 DRAFT FOR REVIEW As of Dec. 14, 2022
(Redlined)

CITY COUNCIL

PROCEDURES AND PROTOCOLS

HANDBOOK
Procedures and Protocols Approved 02/01/2020 with New Table of Contents Structure for Review
If yo
u have any questions about this handbook, please feel free to contact the City Clerk by phone at (650) 329-2571 and e-mail at [email protected] or the City Attorney by phone at (650) 329-2171 and e-mail at [email protected].

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40 PART II: CITY COUNCIL PROTOCOLS
The citizens, businesses and organizations of the city are entitled to have fair, ethical and accountable local government, which has earned the public’s full confidence for integrity. To this end, the City Council has adopted Council Protocols and this Code of Ethics for members of the City Council to assure public confidence in the integrity of local government and its effective and fair operation.

Section 1 – City Council Conduct (exist. Protocol Section 2)

1.1. Positive Work Place Environment
Members shall support the maintenance of a positive and constructive work place environment for City employees and for citizens and businesses dealing with the City. Members shall recognize their special role in dealings with City employees to in no way create the perception of inappropriate direction to staff.

1.2. Comply with Law
Members shall comply with the laws of the nation, the State of California and the City in the performance of their public duties. These laws include but are not limited to: the United States and California constitutions, the city Charter, laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities and open processes of governments and City ordinances and policies.

A. Respect for Process
Members shall perform their duties in accordance with the processes and rules of order established by the City Council governing the deliberation of public policy issues, meaningful involvement of the public and implementation of policy decisions of the City Council by City staff.

1.3. City Council Core Responsibilities (exist. Protocol Sec. 1) All members of the City Council, including those serving as Mayor and Vice Mayor, have equal votes. No Council Member has more power than any other Council Member, and all should be treated with equal respect.

All Council Members:

A. Demonstrate honesty and integrity in every action and statement B. Comply with both the letter and spirit of the laws and policies affecting the operation operations of government.

C. Serve as a model of leadership and civility to the community D. Inspire public confidence in Palo Alto government
E. Work for the common good, not personal interest
F. Prepare in advance of Council meetings and be familiar with issues on the agenda G. Fully participate in City Council meetings and other public forums while demonstrating respect, kindness, consideration, and courtesy to others H. Do not politicize procedural matters such as minutes approval or agenda order for strategic purposes
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41 HI. Participate in scheduled activities to increase Council effectiveness IJ. Review Council procedures, such as these Council Protocols, at least annually JK. Represent the City at ceremonial functions at the request of the Mayor KL. Be responsible for the highest standards of respect, civility and honesty in ensuring the effective maintenance of intergovernmental relations
LM. Respect the proper roles of elected officials and City staff in ensuring open and effective government
MN. Provide contact information to the City Clerk in case an emergency or urgent situation arises while the Council Member is out of town

1.4. General Member Conduct
Councils are composed of individuals with a wide variety of backgrounds, personalities, values, opinions, and goals. Despite this diversity, all have chosen to serve in public office in order to improve the quality of life in the community. In all cases, this common goal should be acknowledged even as Council may "agree to disagree" on contentious issues.

A. Conduct of Members
The professional and personal conduct of members must be above reproach and avoid even the appearance of impropriety. Members shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other members of the Council, boards and commissions, the staff or the public. Rude and unprofessional behavior are also unacceptable.

B. In Public Meetings (exist. Protocol 2.1)
1) Use Formal Titles
The Council should refer to one another formally during Council meetings as Mayor, Vice Mayor or Council Member followed by the individual’s last name.

2) Practice Civility and Decorum in Discussions and Debate.

Difficult questions, tough challenges to a particular point of view, and criticism of ideas and information are legitimate elements of a free democracy in action. Be respectful of diverse opinions.

3) Honor the Role of the Presiding Officer in Maintaining Order and Equity.

Respect the Chair's efforts to focus discussion on current agenda items. Objections to the Chair's actions should be voiced politely and with reason, following the parliamentary procedures outlined in the City Council Procedural Rules.

4) Demonstrate Effective Problem-Solving Approaches.

Council mMembers have a public stage to show how individuals with disparate points of view can find common ground and seek a compromise that benefits the community as a whole.

Council mMembers are role models for residents, business people and other stakeholders involved in public debate.

5) Be Respectful of Other People's Time.

Stay focused and act efficiently during public meetings.

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42 C. In Private Encounters
Treat Others as You Would Like to be Treated.

Ask yourself how you would like to be treated in similar circumstances, and then treat the other person that way.

1.5. Decisions Based on Merit
Members shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations.

1.6. Advocacy
A. Representation of Private Interests
In keeping with their role as stewards of the public interest, members of Council shall not appear on behalf of the private interests of third parties before the Council or any other board, commission or proceeding of the City, nor shall members of boards and commissions appear before their own bodies or before the Council on behalf of the private interests of third parties on matters related to the areas of service of their bodies.

B. Advocacy
Members shall represent the official policies or positions of the City Council, board or commission to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, members shall explicitly state they do not represent their body or the City, nor will they allow the inference that they do.

C. Council Voting Delegate Authority at Conferences / Annual Meetings The Council may authorize a Council member to act as the voting delegate at conferences or meetings of other bodies, including, but not limited to, the League of California Cities annual conference, National League of Cities conference, and the Association of Bay Area Governments (ABAG) annual meeting. Prior to the conference / meeting, the Council may provide the voting delegate with specific direction on proposed resolutions and other matters. When provided specific direction, the voting delegate’s authority is limited to matters on which the Council has directed the delegate to vote.

1.7. Council Conduct with City Staff
Governance of a City relies on the cooperative efforts of elected officials, who set policy, and City sStaff, which analyze problems and issues, make recommendations, and implement and administer the Council’s policies. Therefore, every effort should be made to be cooperative and show mutual respect for the contributions made by each individual for the good of the community.

A. Treat All Staff as Professionals
Clear, honest communication that respects the abilities, experience, and dignity of each individual is expected. As with your Council colleagues, practice civility and decorum in all interactions with City sstaff.

B. Channel Communications through the Appropriate Senior City Staff ITEM 4
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43 Questions of City staff should be directed only to the City Manager, Assistant City Manager, City Attorney, City Clerk, Assistant City Clerk, City Auditor, Senior Assistant City Attorneys, or Department Heads. The Office of the City Manager should be copied on any request to Department Heads. Council mMembers should not set up meetings with department staff directly, but work through Department Heads, who will attend any meetings with Council m Members. When in doubt about what staff contact i s appropriate, Council mMembers should ask the City M anager for direction. However, nothing in these protocols is intended to hinder the access Council-appointed liaisons (e.g. to the San Francisquito JPA or NCPA) may require in order to fulfill their unique responsibilities.

D. In order to Facilitate Open Government, All Council Members Should Make Decisions with the Same information from Staff on Agendized or Soon- to be- Agendized Items (Items on the Tentative Agenda or in a Council Committee)

E. Never Publicly Criticize an Individual Employee, Including Council Appointed Officers. Criticism is dDifferentiated from qQuestioning Facts or the oOpinion of sStaff.

All critical comments about staff performance should only be made to the City Manager through private correspondence or conversation. Comments about staff in the office of the City Attorney, City Auditor or City Clerk should be made directly to these CAOs through private correspondence or conversation.

F. Be Cautious in Representing City Positions on Issues Before sending correspondence related to a legislative position, check with City staff to see if a position has already been determined. When corresponding with representatives of other governments or constituents remember to indicate if appropriate that the views you state are your own and may not represent those of the full Council.

[updated after Dec. 13 P&S meeting]
As a Council member, it is important to remember to indicate when the views you state are your own versus views which represent those of the full Council. This is relevant whether sending correspondence related to a legislative position or corresponding with constituents or representatives of other governmental agencies or organizations.

In the case where the Council has appointed a Council member to serve on a regional governing body to represent the interests of the entire region, the Council member serving on that regional body should clearly state if they are representing the City or the regional board or commission in their positions.

G. Do Not Attend Staff Meetings Unless Requested by Staff Even if the Council M member does not say anything, the Council M member’s presence may imply support, show partiality, intimidate staff, or hampers staff’s ability to do its job objectively.

H. Depend upon the Staff to Respond to Citizen Concerns and Complaints It is the role of Council mMembers to pass on concerns and complaints on behalf of their constituents. It is not, however, appropriate to pressure staff to solve a problem in a particular way. Refer citizen complaints to the appropriate senior staff member, according to the protocol ITEM 4
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44 on channeling communications. The senior staff member should respond according to the Policy and Procedure for Responding to Customer Complaints. Senior staff is responsible for making sure the Council Member knows how the complaint was resolved.

I. Do not Solicit Political Support from Staff
The City Charter states that “Neither the city manager or any other person in the employ of the city shall take part in securing or shall contribute any money toward the nomination or election of any candidate for a municipal office.” In addition, some professionals (e.g., City Manager and the Assistant City Manager) have professional codes of ethics, which preclude politically partisan activities or activities that give the appearance of political partisanship. Council members should Aavoid any staff interactions that may be construed as trying to shape staff recommendations to be presented to the Council as a whole. Council Members shall refrain from coercing staff in making recommendations to the Council as a whole.

J. Use of Public Resources
Members shall not use public resources, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes.

J. Use of City Letterhead
Official Mayor/City Council letterhead should only be used for correspondence signed by the Mayor or City Council members when specifically directed by the Council or consistent with prior City Council direction. This applies to the use of any stationery that could be interpreted as official letterhead.

1.8. Use of Staff Time

A. Do Not Get Involved in Administrative Functions (exist. Protocol 2.3 E) The key provisions on Council-staff relations found in section 2.04.170 of the Palo Alto Municipal Code:

“Neither the council nor any of its committees or members shall direct, request or attempt to influence, either directly or indirectly, the appointment of any person to office or employment by the city manager or in any manner interfere with the city manager or prevent the city manager from exercising individual judgment in the appointment of officers and employees in the administrative service. Except for the purpose of inquiry, the council and its members shall deal with the administrative service solely through the city manager, and neither the council nor any member thereof shall give orders to any of the subordinates of the city manager, either publicly or privately.”

B. Respect the “One Hour” Rule for Staff Work
Requests for staff support should be made to the appropriate senior staff member, according to the protocol for channeling communications. Any request, which would require more than one hour of staff time to research a problem or prepare a response, will need to be approved by the full council to ensure that staff resources are allocated in accordance with overall council priorities.

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45 the Council Member may request that the City Manager place the request on an upcoming Council agenda. The 1-hour rule applies to all Council members equally.

* * *

SECTION 2 - City Council Conduct with Palo Alto Boards and Commissions

The City has established several Boards and Commissions as a means of gathering more community input.

Citizens who serve on Boards and Commissions become more involved in government and serve as advisors to the City Council. They are a valuable resource to the City’s leadership and should be treate d with appreciation and respect. Council mMembers serve as liaisons to Boards and Commissions, according to appointments made by the Mayor, and in this role are expected to represent the full Council in providing guidance on Council processes or actions to the Board or Commission. Refrain from speaking for the full Council on matters for which the full council has not yet taken a policy position. In other instances, Council mMembers may at tend Board or Commission meetings as individuals, and should follow these protocols:

2.1. If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions.

Council mMembers may attend any Board or Commission meeting, which are always open to any member of the public. Any public comments by a Council Member at a Board or Commission meeting, when that Council Member is not the liaison to the Board or Commission should make a point to clearly state it is an indiv idual opinion and not a representation of the feelings of the entire City Council.

2.2. Refrain from Lobbying Board and Commission Members.

It is inappropriate for a Council Mmember to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Council m Members to contact Board or Commission members in order to clarify a position taken by the Board or Commission.

2.3. Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Council Members.

The City Council appoints individuals to serve on Boards and Commissions, and it is the responsibility of Boards and Commissions to follow policy established by the Council. Council mMembers should not feel they have the power or right to unduly in fluence Board and Commission members. A Board and Commission appointment should not be used as a political reward.

2.4. Concerns about an Individual Board or Commission Member Should be Pursued with Tact.

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46 notresolved, the Council Member should consult with the Mayor, who may address the issue to the Council as appropriate.

2.5. Be Respectful of Diverse Opinions.

A primary role of Boards and Commissions is to represent many points of view in the community and to provide the Council with advice based on a full spectrum of concerns and perspectives. Council mMembers may have a closer working relationship with some individuals serving on Boards and Commissions but must be fair to and respectful of all citizens serving on Boards and Commissions.

2.6. Keep Political Support Away from Public Forums.

Board and Commission members may offer political support to a Council Mmember, but not in a public forum while conducting official duties. Conversely, Council m Members may support Board and Commission members who are running for office, but not in an official forum in their capacity as a Council Mmember.

2.7. Maintain an Active Liaison Relationship.

Appointed Council liaisons or alternates are encouraged to attend all regularly scheduled meetings of their assigned Board or Commission.

2.8 Role of Council Liaison to Board or Commission [updated after Dec. 13 P&S Discussion] The role of Council liaison to a Board or Commission is to share prior Council discussions and actions on issues as applicable, and assist the Board or Commission in understanding likely Council perspectives on issues as well as how the Board o r Commission might support Council decision-making.

* * *

SECTION 3 - STAFF CONDUCT WITH CITY COUNCIL (exist. Protocol 2.5 A-D)

3.1. Respond to Council Questions as Fully and as Expeditiously as is Practical The protocol for staff time devoted to research and response is in application here. If a Council Member forwards a complaint or service request to a department head or a Council Appointed Officer, there will be follow-through with the Council Member as to the outcome.

3.2. Respect the Role of Council Members as Policy Makers for the City Staff is expected to provide its best professional recommendations on issues. Staff should not try to determine Council support for particular positions or recommendations in order to craft recommendations. The Council must be able to depend upon the staff to make independent recommendations. Staff should provide information about alternatives to staff recommendations as appropriate, as well as pros and cons for staff recommendations and alternatives

3.3. Demonstrate Professionalism and Non-Partisanship in all Interactions with the Community and in Public Meetings
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47 3.4. It is Important for the Staff to Demonstrate Respect for the Council at all Times. All Council mMembers Should be Treated Equally

* * *

THIS SECTION UNDER REVIEW To be
reviewed in 2023

SECTION 4 - CITY COUNCIL AND BOARDS AND COMMISSIONS POLICY FOR TRAVEL AND

MISCELLANEOUS EXPENSE REIMBURSEMENT
This policy is set by the City Council and applies to Council M members and to Board and Commissions members, who will be referred to as “Officials” in the policy. In reimbursing travel and miscellaneous expenses, a municipal purpose requiring the expenditure of public funds must be in evidence; also, in accord with the Charter and Municipal Code, such expenditures must be from authorized appropriations.

4.1. Eligible Activities
The following activities (“Eligible Activities”) are recognized by the Council as advancing municipal purposes and are eligible for expense reimbursement, subject to limitations on activities and specific and total expenditures described elsewhere in this policy:

A. Communicating with representatives of regional, state and national government on adopted city policy positions;

B. Attending educational seminars designed to improve officials’ skill and information levels;

C. Participating in regional, state and national organizations whose activities affect the City’s interest;

D. In collaboration with City staff, implementing a city-approved strategy for attracting or retaining businesses to the City.

All other expenditures require prior approval by the City Council at a regular or special meeting.

4.2. Out-of-Town Conferences or Meetings
A. Reimbursement
All payments for travel and meetings shall be on the basis of either reimbursement of expenses advanced by the Council Member/Official or payments made directly to travel agencies/websites, hotels, airlines or the organization sponsoring the meeting. All requests for payments or reimbursements must be accompanied by invoices or paid detailed receipts and a copy of descriptive literature about the conference or meeting. The City Clerk, Mayor or Chair for Officials must approve, in advance, individual travel requests for out -of-town meetings and conferences, e.g., Annual League of California Cities Conference, National League of Cities Conference, etc., including Eligible Activates.

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48 Allowable expenses for local or Bay Area Eligible Activates do not require prior approval by the Mayor or Chair.

The total reimbursement shall not exceed the budget adopted by the Council for this purpose.

All reimbursements shall comply with the limits of Policy and Procedures 1 -02 (City wide Travel Policy).

Expense reports should be submitted within 30 days of end of trip. Inability to provide such documentation in a timely fashion may result in expense being borne by the Council Member or Official.

• Meals
The City will provide a per diem (“per day”) allowance for meals and incidentals to Council Mmembers or Officials who are approved to travel overnight for official City business. Council Mmembers or Officials will receive a flat rate for meals and will not be required to submit receipts.

The per diem rate varies and is dependent on the destination of travel. The rates for the various travel destinations are available on the U.S. General Services Administration website (http://www.gsa.gov/portal/content/104877). When meals are provided at an event, the value of that meal will be deducted from the daily per diem rate. Travelers will receive 75% of the daily per diem amount on days requiring transportation to and from the location (i.e., departure day and return day) regardless of departure and arrival times. Meals provided on days of travel shall be deducted at full-value.

C. Lodging Expense
Council Mmembers or Officials shall select single occupancy, standard, non-deluxe accommodations and should stay at hotels offering economical lodging rates. When possible, travelers attending a conference or seminar should stay at conference hotels, which offer a negotiated rate.

The City will not reimburse any cost related to the extension of a hotel stay beyond the time necessary to complete the event. An out-of-state trip involving cross-county travel may require hotel accommodations both before and after the conference or training.

Within California and adjoining states, an extra night’s hotel stay should not be necessary if flight arrangements can be made the same day.

The use of hotels is restricted to cities located beyond 50 miles (one-way) from the City of Palo alto or the traveler’s residence (whichever is shortest). For example, if the destination is Sacramento and you live in Palo Alto (118 miles) or Oakland (81 miles), you would qualify for a hotel (and per diem for meals). However, if you live in Vacaville (35 miles) or Lodi (36 miles) you would not qualify for a hotel.

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49 Expenses incurred for guests of the traveler and the like are not reimbursable.

Incidental expenses related to City business shall be reimbursed at cost as

supported by submitted receipts. Incidental expenses may include hotel parking charges, Internet connection services, and telephone charges.

The actual costs for pa rking will be reimbursed when approval to use a personal vehicle or rental car is obtained in advance. Council M members or Officials should use the lowest cost alternative for parking within a reasonable area from the destination. Internet connection services purchased to conduct City business are reimbursable. Other charges on the hotel bill, such as pay-TV movies, cleaning, laundry, room service charges or charges for additional guests are not reimbursable.

D. Transportation
1) Air Transportation
Council Mmembers or Officials shall fly economy class on the lowest flight available for the most direct route to the final destination, which could reasonably include scheduled layovers. Council Members or Officials are encouraged to make air reservations as early as feasible to obtain the greatest discount and to consider the use of alternate but nearby airports to take advantage of the lowest fares. Extension of the trip to cover a weekend stay to obtain a lower airfare does not entitle the Council Member or Official to be reimbursed for the extra day’s hotel.

Council mMembers or Officials may use City travel to qualify for frequent flyer credits, but the selection of an airline for a given trip shall not be made for the purpose of accumulating such credits. Council mMembers or Officials that choose to use their personal frequent flyer miles for City business shall not be reimbursed for the value of the tickets. If the airline charges for all checked baggage, the City will cover the cost for one checked bag only. Excess baggage charges are not reimbursable.

2. Rental Cars
Rental cars shall be approved if other ground transportation, such as shuttles or taxis, is more expensive during the stay at the destination. Only economy or compact car models may be rented unless an upgrade is provided by the rental agency at no additional cost. Because the City is self -insured, Council m Members or Officials should decline any additional insurance offered by the rental company. Council mMembers or Officials must also decline the Fuel Purchase Options (which allows for prepayment of a gas tank refill) and shall refuel prior to returning the rental car. Rental car options such as GPS devices and any other extra optional charges are not reimbursable.

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50 event will be reimbursed either at the current IRS mileage rate or the car rental cost apportioned for the number of days used for City business, whichever is less.

3. Private Automobiles
Private automobiles may be used for personal or group transportation on extended trips.

Reimbursement shall be made at the current IRS mileage rate. The distance to be reimbursed shall be measured from the place of work and from the employee’s home, and the calculated mileage reimbursement shall be based upon which of the two distances is shorter. Mileage reimbursement for private automobiles shall not exceed the cost of round trip air transportation (economy class) for a reservation made at least seven days in advance of the trip.

4.32. Local or Bay Area Activities
Council mMembers or Officials who have been requested or designated to represent the City may receive the actual cost of:

A. Meals, if they are a scheduled feature of the activity, e.g., SCCCA dinner meetings.

B. Registration fees where applicable.

C. Mileage if activity is outside the City (mileage claims should be submitted monthly, with details: date and type of meeting, number of miles traveled to be indicated), consistent with City Policy and Procedures 1-02.

D. Council mMembers and Officials may be reimbursed by the City for use of a private bicycle to attend local or Bay Area activities outside the City of Palo Alto consistent with City Policy and Procedures 2-9.

4.43. Other Expenses
Ethics Training Expenses – AB1234 requires ethics training every two years and such fee and related expenses are eligible for reimbursement.

4.44. Activities Not Considered Reimbursable
A. Voluntary attendance at any conference or meeting, not representing the City.

Meetings of social or service organizations.

B. Meetings of voter groups or with individual citizens concerned with agenda items.

• Election campaign activities.

• Alcohol and entertainment expenses.

• Personal portion of the trip and other non-mileage automobile expenses.

4.56. Reports to Council
Council mMembers and oOfficials shall provide brief verbal reports on meetings attended at the City’s expense at the next regular Council/Board/Commission meeting. If multiple Officials ITEM 4
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51 attended, a joint report ma y be made. All related documents are subject to the Public Records Act and can be periodically reviewed by auditors.

4.76. Violation of This Policy
Use of public resources or falsifying expense reports is in violation of this policy and may result in any or all of the following:

- Loss of reimbursement privileges
- A demand for restitution to the City
- The City reporting the expenses as income to the elected or appointed Official to state and federal tax authorities
- Civil penalties of up to $1000 per day and three times the value of the resources used - Prosecution for misuse of public resources

4.87. Mayor and Vice Mayor Additional Compensation
The Mayor shall receive $150 monthly and the Vice Mayor $100 monthly to defray additional expenses of these offices.

4.98. Support Services
The City Clerk’s Office makes travel arrangements for Council M members. This service includes conference registration, hotel reservations, per diem advances and reimbursement of unforeseen expenses. The department liaison for each board and commission will be responsible for arrangements for Officials.

4.10.9. Miscellaneous Expenditures
New Language: Miscellaneous Expenditures

Existing Language
None
Proposed New Language (updated after Dec. 13 P&S Discussion) X.1 Expenditure of City Council Contingency Funds
Expenditures from the City Council Contingency budget must be directed by Council motion, either via a colleagues memo or as part of an agendized item.

X.2 City Purchase of Tickets or Sponsorship of Non-Profit Organization Events the City Manager may purchase tickets or sponsor events by non-profit organizations, subject to budget availability, under any of the following circumstances:

1. where the event serves a City educational purpose,

2. recognition for work done by staff (not including elected or appointed officials), or

3. expending budget allocations specifically intended for event attendance.

x.3 Expenditure for Annual Holiday Event
Expenditures from the Council special event budget may be directed to be expended for an annual holiday celebration, subject to budget availability for attendance by Council members, executive leadership staff and community leaders. Event details will be coordinated by the Mayor and facilitated by staff.

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52 * * *

SECTION 5 - Confidentiality, Conflicts of Interest, Gifts And Favors [UPDATED to just reference existing State law]
Members shall respect the confidentiality of information concerning the property, personnel or affairs of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests. There are many State laws regarding confidentiality, conflicts of Interest, and gifts and favors. Council members should stay apprised of and comply with State law on these topics.

5.1. Conflict of Interest
In order to assure their independence and impartiality on behalf of the common good, members shall not use their official positions to influence decisions in which they have a material financial interest or where they have an organizational responsibility or personal relationship, which may give the appearance of a conflict of interest.

5.2. Gifts and Favors
It is contrary to the city of Palo Alto’s ethical standards for any council member to accept gifts or gratuities from an individual, business, or organization doing business, or seeking to do business, with the City or who is seeking permits or other entitlements from the City.

The acceptance of gifts can convey an appearance of favoritism and conflict of interest. Gifts can be perceived as attempts to influence City operations or as compensation for services rendered and can erode the public confidence in the impartiality of decisions made by Council mMembers.

Council mMembers exercise good faith in carrying out this Protocol. It is impossible to list every situation and fact pattern, so it anticipates that Council M members will exercise their good judgment in determining whether the item is a gift or not.

This policy is supplemental to the gift limitations of the Fair Political Practices Commission’s Limitations and Restrictions on Gifts, Honoraria, Travel and Loans.

The following are not considered gifts under this Protocol:

A. Gifts which the Council member returns (unu sed) to the donor, or for which the Council Member reimburses the donor, within 30 days of receipt.

B. Gifts from a Council Member’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother -in-law, sister -in-law, aunt, uncle, n iece, nephew, or first cousin or the spouse of any such person, unless he or she is acting as an agent or intermediary for another person who is the true source of the gift.

C. Minor gifts of hospitality involving food or drink, that the Council Member recei ves in an individual’s home or at another location of business.

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53 D. Gifts approximately equal in value exchanged between the Council Member and another individual on holidays, birthdays, or similar occasions.

E. Informational material provided to assist the Cou ncil member in the performance of their official duties, including books, reports, pamphlets, calendars, periodicals, videotapes, or free or discounted admission to informational conferences or seminars.

F. A bequest or inheritance.

G. Campaign contributions.

H. Personalized plaques and trophies with an individual value of less than $250.

I. Tickets to attend fundraisers for campaign committees or other candidates, and tickets to fundraisers for organizations exempt from taxation under Section 501(c)(3) of the Inte rnal Revenue Code.

J. Free admission, refreshments, and similar non -cash nominal benefits provided to the Council Member at an event at which the Council Member gives a speech, participates in a panel or seminar, or provides a similar service. Transportation within California, and any necessary lodging and subsistence provided directly in connection with the speech, panel, seminar, or similar service, are also not considered gifts.

K. Passes or Tickets which provide admission or access to facilities, goods, ser vices, or other benefits (either on onetime or repeat basis) that the Council Member does not use and does not give to another person.

L. Wedding gifts

M. A prize or award receive d in a bona fide competition not related to official status. (These exceptions are paraphrased from FPPC publications.)
N. Gifts from Sister Cities or other entities, other municipalities, if forwarded to the City.

5.3. Confidential Information
Members shall respect the confidentiality of information concerning the property, personnel or affairs of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests.

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POLICY AND PROCEDURES 1-02/ASD
Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016

PURPOSE

The purpose of this policy is to provide pr ocedures for the authorization of travel and payment of travel expenses for Ci ty employees attending conferences, training, and meetings. The po licy will ensure that all tr avel related expenses are reasonable and necessary for the conduct of City business.

For the purposes of this policy, City em ployees shall mean all full-time or part- time exempt and non-exempt employees. Temporary or contract employees must receive express authorization in advanc e from the Assistant City Manager or designee for all travel related expenses.

Any exceptions to this policy must be ap proved by the Department Head and the Assistant City Manager or designee.

PROCEDURE

A. Extended Travel

1) Authorization for Travel

Prior to the commitment or expenditure of any City funds for extended travel (requiring an overnight stay or airfare), the employee shall obtain approval for the event from a Depart ment Head or C ouncil Appointed Officer (CAO). This authority cannot be delegated. The authorization for out-of-state extended trav el must also be approv ed by the Assistant City Manager or designee.

No individual may authorize his/her own travel. Department Head travel shall be approved by the City Manager or designee and CAO travel shall be approved by the Assistant City Manager or designee.

A Pre-Travel Authorization form shall be used to request approval and to document an estimate of total expenses (i.e., registration fees, lodging, transportation, and meals). A copy of the official event brochure and/or agenda of the event that describes the schedule of sessions, provided transportation and meals, and other amenities of the event must be attached to the form. IRS per diem rates shall be used for calculating estimated meal expenditures.

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POLICY AND PROCEDURES 1-02/ASD
Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016

The Pre-Travel Authorization form includes boxes that must be checked by the employee and verified by the Department Head, CAO, Assistant City Manager or designee, or City Manager or designee to indicate that:

 Government rates have been requested for hotel and registration  Employee agrees to submit a Travel Expense Report within 30 days after return from the trip
 Professional Development will be us ed to reimburse employee for the travel or training (if applicable)

Department Head/CAO/Assistant City Manager/City Manager approval indicates that:

 Government rates for hotel and registration have been verified  The request complies with the City’s Travel Policy and Procedures  Applicability of using Professiona l Development funds has been determined

The original approved Pre-Travel Authorization form, along with the official event brochure and/or agenda of the event, should be maintained by the department and submitted with th e Travel Expense Report at the appropriate time.

2) Travel Arrangements

Departments are encouraged to make travel arrangements (registration fees, lodging reservations, air transportati on, and rental cars) on the Internet, utilizing a procurement card for paymen t. A copy of the approved Pre- Travel Authorization form should be attached to the monthly procurement card activity log.

3) Reimbursable Travel Expenses

a) Registration Fee

Registration fees for those expenses indicated in the published event materials. Government rates and/or any discounts offered for early registration should be obtained whenever possible.

b) Lodging Expense

Travelers shall select single o ccupancy, standard, non-deluxe accommodations and should stay at hotels offering economical ITEM 4
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Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016

lodging rates. Travelers attendi ng a conference or seminar are encouraged to stay at conference hotels, which offer a negotiated conference rate. When making rese rvations, travelers should request government rates, if available. Traveling employees should carry their City identification cards.

The City shall not reimburse any co st related to the extension of a hotel stay beyond the time necessar y to complete th e event. An out- of-state trip involving cross-co untry travel may require hotel accommodations both before and after the conference or training.

Within California or adjoining stat es an extra night’s hotel stay should not be necessary if flight arrangements can be made the same day.

The use of hotels is restricted to cities located beyond 50 miles (one- way) from the City of Palo Alto or the traveler’s residence (whichever is shortest). For ex ample, if the destination is Sacramento and you live in Palo Alto (118 m iles) or Oakland (81 miles), you would qualify for a hotel. However, if you live in Vacaville (35 miles) or Lodi (36 miles) you would not qualify for a hotel.

c) Transportation

Air Transportation
Travelers shall fly economy coach cl ass on the lowest cost flight available for the most direct rout e to the final destination, which could reasonably include schedul ed layovers. Travelers are encouraged to make air reservations as early as feasible to obtain the greatest discount and to consider the use of alternate but nearby airports to take advantage of the lo west fares. Extension of the trip to cover a weekend stay to obtain a lower ai rfare does not entitle the traveler to be reimbursed for the extra day's hotel costs or meal expenses. Travelers may use City travel to qualify for frequent flyer credits, but the selection of an air line for a given trip shall not be made for the purpose of accumulati ng such credits. Travelers that choose to use their personal frequent flyer miles for City business shall not be reimbursed for the valu e of the tickets. If the airline charges for all checked baggage, the City will cover the cost for one checked bag only. Excess baggage charges are not reimbursable.

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Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016

Rental Cars
Rental cars shall only be approved, if other ground transportation, such as shuttles or taxis, is more expensive during the stay at the destination. Only economy or co mpact car models may be rented, unless the upgrade is provided by the rental agency at no cost. Rental car options such as GPS devices are not reimbursable. Because the City is self-insured, employees should decline any additional insurance offered by the rental company. Employees must also decline any Fuel Purchase Options (which allow for prepayment of a gas tank refill) and shall refuel prio r to returning the rental car, if additional charges apply for refueling. Use of a rental car, in lieu of a private auto, to travel to and fr om an out-of-tow n event will be reimbursed either at the current IR S mileage rate or the car rental cost apportioned for the number of days used for City business, whichever is less.

Private Automobiles
Employees may use private automo biles for personal or group transportation on extended trips. Re imbursement shall be made at the current IRS mileage rate. The di stance to be reimbursed shall be measured from the place of work and from the employee’s home, and the calculated mileage reimbursement shall be based upon which of the two distances is shorter. Mileage reimbursement shall not exceed the cost of refundable roun d trip air transportation (economy class) for a reservation made at l east seven days in advance of the trip.

City Pool Cars
City pool cars normally may not be used for transportation on extended trips. Requests for use of City vehicles for this purpose should be directed to the Fleet Manager, Equipment Management Division, Public Works. For use of vehicles assigned to specific divisions and/or individuals, refer to Vehicle Use Policy and Procedures 4-1.

d) Meals

Effective April 27, 2 015, the City will provide a per diem (“per day”) allowance for meals and inci dentals to employees who travel overnight for official City business. Travelers will receive a flat rate for meals and will not be required to submit receipts. If travelers use a P-Card to pay for meals, it negates the per diem.

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Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016

The per diem rate varies and is dependent on the destination of travel. The rates for the various travel destinations are available on the U.S. General Services Administration website
(http://www.gsa.gov/portal/content/104877) (these amounts are subject to change every year). Each city has a dollar value for the full day depending on the relative cost of meals in that jurisdiction.

When meals are provided as part of the cost of an event, that meal will be deducted from the full day per diem rate. Travelers will receive 75% of the full day per diem amount for days requiring transportation to and from the location (i.e. departure day and return day) regardless of departure and arrival times. Meals provided on days of travel shall be deducted at full-value.

Travelers are required to look up the per diem rates as part of the pre-approval authorization process.

e) Incidental Expenses

Incidental expenses related to C ity business shall be reimbursed at cost as supported by submitted recei pts. Incidental expenses may include hotel parking charges, In ternet connection services, and telephone charges.

The actual costs for parking will be reimbursed when approval to use a personal vehicle or rental car is obtained in advance. Travelers should use the lowest cost alternative for parking within a reasonable area from the destination. Internet connection services purchased to conduct City business are reim bursable. Employees will be reimbursed for telephone calls to City of Palo Alto offices. The hotel bill should indicate any calls that are of a business nature.

Reimbursement for calls home is limited to one call per day of reasonable length. Other charges on the hotel bill, such as pay-TV movies, cleaning, laundry, room service charges (additional over cost of meal) or charges for additional guests are not reimbursable.

4) Travel Expense Report

Within thirty business days after th e employee's return from the trip, a Travel Expense Report must be filed with the Accounting Division of ASD.

Employees are encouraged to complete the Travel Expense Report electronically in Excel. Employees sh all print and sign the Travel Expense Report. When signing the Travel Ex pense Report, the employee certifies that the expenses listed on the Repor t were incurred in conformance with ITEM 4
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Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016

the Travel Policy and that the “am ount due the employee” has not been received from any other source. The original Pre-Travel Authorization form must be attached to the Travel Expense Repo rt. The filing of this report is necessary whether or not reim bursement is requested in order to document to the IRS that the tr avel expenses do not constitute miscellaneous income to the employee. If this report is not filed within the required thirty working days, no future travel requests will be processed for the individual until outstanding travel and expense claims are complete.

The Travel Expense Report must ac count for all expenses, including expenses paid by the procurement card, and all expenses must be supported by itemized original receipts or copi es of electronic receipts. For air transportation, the original airline tic ket or flight confirmation printout should be attached. It is not sufficient to provide Internet quotes or pre-stay web confirmations for air travel or lodging. For expenses paid with the P- Card, the original receipts must be a ttached to the P-Ca rd statement and copies of the receipts should be attached to the Travel Expense Report.

The Travel Expense Report must be approved by the Department Head/CAO or designee. (Each department/office provides a list of designated approvers to ASD on an annu al basis). Department Head travel shall be approved by the City Manager or designee and CAO travel shall be approved by the Assistant City Ma nager or designee. Department Head/CAO approval is required for any expenses that were not authorized on the Pre-Travel Authorization form. For missing documentation, the traveler shall attach a written expl anation detailing th e expenditure and reason for the missing receipt, and obtain Department Head approval.

If reimbursement is due to the employe e, a check will be issued to the employee using the Travel Expense Report (no separate claim voucher is needed). If the reimbursement amount is $150 or less, the employee may request reimbursement via petty cash.

B. Local One-Day Travel

Employees shall obtain verbal approval fo r one-day local travel (not requiring airfare and/or an overnight stay) fro m his/her Department Head, Assistant Department Head, Deputy Director, Divisi on Head or designee prior to the traveler’s departure. Designees must be management staff. A Pre-Travel Authorization form is not required for local travel.

Typical reimbursable expenses for loca l travel include mileage, public transportation, parking, bridge tolls, me eting or conference registration fees, ITEM 4
Attachment C- Citywide Travel
Policy (update 2-2-2016)

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POLICY AND PROCEDURES 1-02/ASD
Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016

and meal expenses. Only expenditures su pported by itemized receipts will be reimbursed.

Travelers may be reimbursed for meal e xpenses. Itemized receipts for meals must be maintained. The maximum reimbursement amount for meals shall be:
$15.00 for breakfast, $16.00 for l unch, and $28.00 for dinner. Under no circumstances will expenses for alcoholic beverages be reimbursed by the City.

Meal reimbursements for local conference s, meetings, or training conducted between the hours of 8 a.m. and 5 p.m., will be limited to lunch. When meals are provided as part of the cost of an event, travelers will not be reimbursed for the actual expenses of these meals.

Local travel meal expenses that do no t meet the IRS defi nition of “business related” will be considered taxable inco me and added to th e employee’s W-2.

For a meal to be considered non-taxabl e, it must be “directly related” and “associated with” the active conduct of C ity business. To meet this definition, business must be conducted during the me al period. Meal expenses associated with training do not meet the IRS defi nition of a business related meal. Such meals will be considered taxable income and added to the employee’s W-2.

For all meal expense reimbursements, the form should include an explanation of why the meal was necessary for the conduct of City business.

C. Night Meeting Meals

Meals taken by management employees as signed to attend night meetings will be reimbursed for actual dinner expenses up to $20. Itemized receipts for meals must be maintained. Reimbursement shoul d be requested on a Citywide Petty Cash Reimbursement form. To obtain the form, refe r to the City’s Petty Cash Policy. The Petty Cash Reimbursement form must be accompanied by the meeting agenda.

Night meeting meal reimbursements are considered taxable income and will be added to the employee’s W-2.

D. SEIU Overtime Meals

Meals taken by SEIU employees wo rking emergency and non-emergency overtime will be reimbursed in accordance with the contract between the City and SEIU, currently in the amount of $1 0 for breakfast, $15 for lunch, and $20 for dinner. No receipts are required. Reimbursement should be requested on a Citywide Petty Cash Reimbursement form.

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POLICY AND PROCEDURES 1-02/ASD
Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016

E. Reimbursement for Personal Vehicle Use on City Business

City pool cars, assigned vehicles or pub lic transportation should be used for trips between City facilities, to local m eetings/training, or other events outside the City limits but within the Bay Area whenever possi ble. If a city vehicle or public transportation is not available or feasible, personal cars may be used and mileage will be reimbursed at the preva iling IRS rate for the distance between the employee’s home and the destinatio n or work and the destination, whichever is less. Mileage reimbursement requests shall include the number of miles driven, the employee address, and the purpose of the trip.

Reimbursement requests that cover more than one date will be accepted on one form if the trips are for the same purpose or meeting.

Recipients of an automobile expens e allowance may not receive personal vehicle mileage reimbursement, except in the case of business travel beyond the Bay Area counties of Santa Clara, Al ameda, Contra Costa, Solano, Napa, Marin, San Francisco, San Mateo an d Sonoma. In addition, CAO’s and Department Heads who receive an auto mobile expense allowance in lieu of exclusive use of a City automobile may not use City pool cars for business use except on an emergency ba sis, which is documented by memo to the City Manager.

NOTE: Questions and/or clar ification of this policy sh ould be directed to the Administrative Services Department.

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CITY COUNCIL
Colleague’s Memo
Sponsor(s): Lydia Kou, Patrick Burt
Meeting Date: March 20, 2023
Report #: 2303-1084
TITLE
Colleague’s Memo: Council Contingency Fund request for Try Harder! A Palo Alto Community Screening Event

RECOMMENDATION
In support of May as “Teen Mental Health Month” along with furthering the teen mental health focus of the 2023 council priority of Community Health and Safety, the city will provide to YCS $3,000 for the film license and screening fee from the Council Contingency Fund.

GOAL
An event to kick off and highlight May as Mental Health Month by opening conversations within the community through supporting two of Palo Alto’s non-profit partners and school district representatives.

BACKGROUND AND DISCUSSION
The City of Palo Alto, in partnership with PTA Council, allcove, and Youth Community Services (YCS) will host a screening of the documentary film, “Try Harder”, produced by Bay Area filmmaker Debbie Lum. The documentary captures the pressures students face at San Francisco’s elite Lowell High School. Try Harder! movie review & film summary (2021) | Roger Ebert YCS and allcove are coordinating the event and will use the film as a learning tool paired with YCS’s Call to Action workshop. YCS will be using the Developmental Relationship Framework (DRF) to guide a discussion on how to support the youth in our lives. Youth from YCS and allcove will co-lead the discussion along with adult staff members. YCS has a workshop that will be paired with the film which will help adults think of ways they can utilize the DRF in their own relationships with youth.

The PTA Council (PTAC) has reserved the use of the Palo Alto High School Theatres Haymarket Theater for the viewing of the film. YCS and allcove will work together to plan the agenda of the event and to train the youth facilitating the Call to Action workshop.

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Time/Date: Saturday May 6th, 2023 Time TBD (likely 2:00 to 4:30).

TIMELINE
February--train Youth Advisory Groups (YAG) and YCS Peer Leaders in the DRF for the May event.

March--host planning meetings with youth leaders to decide on logistics of the event.

April--start promoting the event
May--event date and wrap up meeting.

FISCAL/RESOURCE IMPACT
This would reduce the Council contingency fund by $3,000 and leave a balance of $101,000 of the original $125,000 for the remainder of FY 2023.

ATTACHMENTS
None.
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: City Manager
Meeting Date: March 20, 2023
Report #:2302-1000
TITLE
March 2023 Update on Housing and Services for Unhoused Residents in Palo Alto

RECOMMENDATION
Staff recommends that the Council receive this report and review its contents regarding housing and services for unhoused residents in Palo Alto.

BACKGROUND
The City Council has identified housing for social and economic balance as a key priority in 2021, 2022, and 2023. To that end, in 2022, the City hired a staff person dedicated to providing support on housing projects and programs, including renter protection and unhoused services, coordinating multidepartmental efforts related to services for unhoused residents, engaging with community groups and building collaborative relationships with key stakeholders. While on April 5, 2021,1 City Council held a study session on services for unhoused residents, the update report in Attachment A is the first to Council intending to provide a combined overview of both housing and services for unhoused residents.

FISCAL/RESOURCE IMPACT
This report is informational only, no additional funding is requested with this update.

STAKEHOLDER ENGAGEMENT
Staff continues to work with community partners focused on housing and/or provision of services to unhoused residents. Additionally, residents communicate to City Council and staff with concerns and ideas relating to housing and services for unhoused residents.

1 City Council Staff Report, April 5, 2021, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12133.pdf Item 14
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ENVIRONMENTAL REVIEW
This informational report will not cause physical changes to the environment and does not constitute a “project” under the California Environmental Quality Act (CEQA).

ATTACHMENTS
Attachment A: Housing and Services for Unhoused Residents - 2023 Update APPROVED BY:

Ed Shikada, City Manager
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Housing and
Services for Unhoused Residents
2023 UPDATE
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Cover images, clockwise from upper left: Palo Alto Homekey rendering, Tree House apartments, staff at emergency Community Resources Center (Rinconada Library) during January 2023 storm event, and rooftop courtyard at Wilton Court.

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Table of Contents
Introduction ................................................................................................................................................................1 Background Data ........................................................................................................................................................2 Guide ..........................................................................................................................................................................3 Relationship Building ............................................................................................................................................... 10 Outcomes ................................................................................................................................................................ 11 Investment ............................................................................................................................................................... 12 Highlights for 2023 .................................................................................................................................................. 14 Appendix .................................................................................................................................................................. 15

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1 Introduction
This update provides an overview of the work performed by City staff relating to housing and services for unhoused people. It reflects and draws from the multiple sources that guide City policy, including City Council, Santa Clara County, and the State of California.

Typically, staff communicates to City Council activities relating to housing and services for unhoused people in a variety of reports, at multiple times. To present the big picture and provide this information in one place, this update contains:
► Background Data on the existing state of housing and unhoused residents in Palo Alto, ► a Guide to departmental goals, roles, activities, and priorities, ► Relationship Building describing the ongoing and new efforts to strengthen community ties, ► Outcomes from City work addressing housing and providing services for unhoused people, ► Investment relating to housing and services for unhoused people, and ► Highlights describing some new efforts in 2023.

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2 Background Data
Palo Alto is known globally as the birthplace of technology and has a robust job market. Many are attracted to living in this vibrant community and the City is committed to improving access to high quality housing for residents across all income segments. The following section provides a quick look at some data on housing stock and affordability and on the needs of unhoused residents in Palo Alto.

Housing1
In Palo Alto, there are 26,150 occupied housing units. According to the Association of Bay Area Governments (ABAG) Regional Housing Needs Allocation (RHNA) requirement, Palo Alto should plan for 6,086 new housing units plus a 10 percent buffer for a total of 6,695 units.

Of occupied units in Palo Alto, 56 percent are owners and 44 percent are renters. While many household incomes in Palo Alto are above moderate or moderate, 26 percent are low to extremely low. Approximately 17 percent of households spend 30-50 percent of their income on housing and 14 percent pay more than 50 percent of their income housing. This is not surprising considering that both home and rental prices have increased significantly—a 40 percent jump for home prices between 2020-2021 and a 55 percent increase in rents over the past decade.

As noted in the Palo Alto Housing Element 2023-2031,
The median priced home ownership units in the County require minimum household incomes upwards of $296,580 for single-family units. The median income for renter-households in Palo Alto is $113,400 which equates to an affordable monthly housing cost of $2,835. The median income for owner- households is $205,531 which equates to an affordable monthly housing cost of $5,138. In comparison, the County’s median income for renter households in Santa Clara is $91,265 which equates to affordable monthly housing cost of $2,281. The median income for owner-households is $155,139 which equates to affordable monthly housing cost of $3,878. The upper end of the households in the above moderate- income range can afford typical rental units, but low- and very low- income- households have much more difficulty in finding rental properties in Palo Alto.

Unhoused Residents2
Last year, 276 unhoused Palo Altans interacted with service providers, taking an assessment3 that helps providers understand individuals support needs. This included 44 households with children and 37 individuals over the age of 65. Over half of those taking the assessment reported a mental health condition and 32 percent a substance abuse disorder. Nearly three-fifths have not had permanent stable housing in more than two years.

Many unhoused Palo Altans sleep outdoors (33 percent) or in a vehicle (29 percent) with only a small number in shelters (14 percent) or transitional housing (3 percent). In terms of the level of assistance people need, 36 percent simply need rapid rehousing, which is short-term rental assistance and services. However, over half (54 percent) require long-term assistance and case management or support services, known as permanent supportive housing. Additional information on unhoused residents in Palo Alto is available in the appendix.

1 Palo Alto Housing Element 2023-2031, https://paloaltohousingelement.com/wp-content/uploads/2022/12/Palo-Alto- Housing-Element-2023-2031.pdf
2 Santa Clara County Office of Supportive Housing, “Analysis of Homeless Households Affiliated with the City of Palo Alto, CY2022.”
3 The vulnerability index and service prioritization decision assistance tool (VI -SPDAT) assessment.

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3 Guide
In 2022, the City hired an Assistant to the City Manager to provide support on housing projects and programs; coordinate multidepartmental efforts related to unhoused services; work with engaged community groups; and build collaborative relationships with key stakeholders. Many departments contribute to this work, in obvious, direct ways such as managing contracted services and grants. Other contributions are more indirect—including the City Attorney’s Office review and advice on policy, the Office of Communications work to ensure transparency and accessible, easy-to-understand information and outreach, and Administrative Services assistance and guidance in procurement and contracting.

As an initial step in coordination, staff met and mapped out their work relating to housing and services for the unhoused. They identified overarching goals of this work, the roles and key activities in each department, and aspirational priorities for the year, as shown in the following pages.

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4 GOALS | HOUSING AND SERVICES FOR THE UNHOUSED
Increase new and maintain existing affordable housing.

Provide appropriate services, identifying resources and ensuring access.

Decrease impacts on residents, community, and staff.

CITY MANAGER’S OFFICE

ROLE KEY ACTIVITIES
Coordinating
citywide activities
relating to housing
and services for
the unhoused.
• Homekey Palo Alto. Managing project to develop interim housing shelter with on- site support services.
• Responses to Queries. Ensuring timely and complete response to questions or concerns relating to housing or services for the unhoused. • TRUST. Supporting a robust North County focus for TRUST, a new program providing an alternative response for people experiencing mental health crises. 2023 PRIORITIES
• Provide training for staff who interact with the unhoused, including training on de-escalation. This effort will involve identifying appropriate resources and partnering with departments whose staff are outward facing, including Community Services, Library, Fire, Police, and Public Works. It will provide staff with the knowledge and tools to encourage positive interactions and good outcomes. • Collect data to better understand costs/benefits. The City Manager’s Office will work with the Office of Management and Budget to identify and aggregate dollars spent on activities relating to housing and services to the unhoused. This will help staff to identify gaps and suggest efficiencies. • Identify resources missing and prioritize them. Building on knowledge gained from data collection, the City Manager’s Office can develop a list of needed resources and seek Council direction on prioritization. • Create clarity around departmental and individual roles and responsibilities. Many different departments and people contribute to the City’s efforts relating to housing and services for the unhoused. Clarifying the varying roles and responsibilities and how they interconnect will help people to more effectively collaborate and problem-solve.

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5 COMMUNITY SERVICES

ROLE KEY ACTIVITIES
Managing both
services for the
unhoused and
those relating to
maintaining
housing (e.g.,
tenant/landlord
mediation).
• Contracted Services and Grants. Managing the Human Services Resource Allocation Process (HSRAP) and the Emerging Needs Fund to provide grant monies to direct service providers and nonprofits. The activities supported by these contracts and monies include: food (breakfast/lunch, grocery gift cards, food pantry), housing search assistance, school supplies for unhoused children, litter removal, tele-medicine equipment, technology and improved digital literacy skills, backpack medicine, and workforce development services and stipends.
• Partnerships. Maintaining relationships with a wide variety of community partners to assist with providing a safety net of services. • Tenant Landlord Mediation Services. Providing information and resources for landlords and tenants with questions, concerns, or the need for dispute resolution.
• Landlord Registry. Maintaining a registry of rental properties, in part, to ensure the City has contact information for a person with legal authority to resolve disputes.
2023 PRIORITIES
• Onboarding, managing, and evaluating contracted outreach worker. The Office of Human Services will be contracting for services with an outreach worker. In this pilot effort, the outreach worker will provide a range of services to meet and engage unhoused Palo Alto individuals where they are, including outreach services, welfare checks, case management, service coordination, shelter access and housing navigation services.

FIRE

ROLE KEY ACTIVITIES
Providing
emergency
medical care and
transportation to
unhoused
individuals.
• Paramedic Calls and Transport. Responding to paramedic calls and transporting individuals to the hospital.
2023 PRIORITIES
• Communicate alternatives to paramedic transport for unhoused individuals seeking shelter or resources. The Fire Department will collaborate with key service providers and the City’s Communication Team to identify ways to ensure people are quickly connected to the resource that best fits their needs.

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6 LIBRARY

ROLE KEY ACTIVITIES
Serving as an
indoor open public
space (and
daytime refuge
from inclement
weather) for the
unhoused and
providing access to
information (e.g.,
via computers,
books, etc).
• Public Space Accommodation. Serving as an indoor public space. • Information. Providing an abundance of information on housing and services for the unhoused.
2023 PRIORITIES
• Leverage Library space. The Library will look at its space usage and talk with community partners to see how Library space can be more actively supportive. • Increase Library involvement in providing tools/resources for the unhoused. The Library will collaborate with other City departments and key service providers to review how tools/resources are currently provided and identify any potential opportunities for improvement.

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7 PLANNING AND DEVELOPMENT SERVICES

ROLE KEY ACTIVITIES
Establish policies
to encourage
housing retention
and production;
secure and
disburse monies
relating to
housing.
• Housing Element. Developing a strategy for the City to provide adequate sites and increase production of safe, decent, and affordable housing in the community.
• Housing Workplan Implementation. Implementing Housing Element Programs and various annually adopted State laws.
• Accessory Dwelling Units (ADUs). Increasing the variety of affordable housing available in Palo Alto by providing clear guidelines and process for ADUs.
• Downtown Parking and Affordable Housing on City Surface Lots.

Exploring, together with the Administrative Services Department, the feasibility of using Downtown In-Lieu Parking Fees to develop new parking in conjunction with affordable housing on City surface lots. • Renter Protections. Developing a suite of renter protection policies, including a rental survey program, just cause, and security deposit efforts. • Affordable Housing Fund. Administering local funds for the development of affordable housing for very-low, low, and moderate income households. • Community Development Block Grant (CDBG) Program. Administering federal funds to nonprofits for affordable housing or for services such as case management to secure affordable housing and employment, fair housing, and senior daycare.
• Below Market Rate (BMR) Housing Purchase Program. Administering a program where when a development of three or more residential units is built, the developer must contribute at least 15% of those units at below market rate for ownership units. People who live or work in Palo Alto, and are interested in buying a BMR unit, are given preference. • Safe Parking. Administering the process to operate safe parking programs—places where people living in their vehicles can safely and legally park and connect with services and support.
2023 PRIORITIES
• Increase awareness of existing programs and resources, while reducing barriers to access. The Department will work to educate all stakeholders (prospective and current homeowners, tenants, and landlords) about available programs and resources.
• Improve communication about existing policies, programs, resources, and successes. This effort will include seeking diverse, accessible ways to effectively communicate information. • Adopt Housing Element. The Department will complete this effort towards a certified Housing Element.
• Identify and secure additional funding for housing efforts. This will help support the Department’s key activities.

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8 POLICE

ROLE KEY ACTIVITIES
Responding to
calls, conducting
welfare checks,
minimizing
property damage,
and promoting
safety.
• Psychiatric Emergency Response Team (PERT). Pairing a licensed mental health clinician with a law enforcement officer to provide expert mental health assistance on some calls-for-service.
• Special Problems Team. Focusing on property crimes, establishing relationships, and connecting the unhoused to services. • Parking Enforcement. Responding to parking violations and providing information to people living in their vehicles about available services (e.g., safe parking).
2023 PRIORITIES
• Re-establishing and maintaining PERT. The Police Department will continue to work with the City Manager’s Office and the County to secure adequate staffing and provide ongoing support. • Identify ways to address and prevent reoccurring complaints regarding parked vehicles. The Police Department will work with other departments to better understand and coordinate the City’s approach to prevention and response.

PUBLIC WORKS

ROLE KEY ACTIVITIES
Cleaning areas to
keep public spaces
clean and safe.
• Cleanup. Public Works responds to calls for cleanup of litter, human waste, stains, and other items. These cleanups are sometimes associated with places where the unhoused are sleeping, parked in their vehicles, or camping out.
2023 PRIORITIES
• Achieve decrease in instances in vandalism and property damage. Public Works will begin documenting when/where and what type of damage occurs. Then, together with the City Manager’s Office and the Police Department, will explore best practices for preventing or decreasing the different types of vandalism and property damage.

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9 OFFICE OF TRANSPORTATION

ROLE KEY ACTIVITIES
Developing and
implementing
parking policies,
including those
affecting people
residing in their
vehicles.
• Parking Regulation. Developing and regulating parking policy to serve residents, employees, and visitors.
2023 PRIORITIES
• Identify ways to address and prevent reoccurring complaints regarding parked vehicles. The Office of Transportation is one of several departments, including the Police Department, who will work together to better understand and coordinate the City’s approach to prevention and response.

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10 Relationship Building
To engage the community and strengthen ties with stakeholders, staff focus on relationship building. One example of this is the work related to the 2023-2031 Housing Element, which included meetings of the Council Housing Element Ad Hoc Committee, the Housing Element Working Group, community workshops, Commission and Council meetings, a housing questionnaire, and stakeholder meetings. Some other examples include staff participation in:
► RV Dwellers Meeting. A monthly meeting bringing together service providers, City staff, a representative of Stanford University, members of the faith-based community, and people from the philanthropic community to discuss and share information relating to Palo Altans living in recreational vehicles (RVs). ► Housing/Community Development Block Grant (CDBG) Coordinators Meeting. Santa Clara County Office of Supportive Housing holds a monthly meeting with representatives from each city in the county to learn about new opportunities relating to housing or services for the unhoused, discuss and share data and ideas, and inform County activities relating to housing or services for the unhoused. ► TRUST CAB. The recently launched Trusted Response Urgent Support Team (TRUST)4 Community Advisory Board includes TRUST staff, Santa Clara County staff, community members with lived experience, service providers, and representatives from cities. The monthly meeting is a working meeting to share data, discuss lessons learned, and improve service delivery.

Staff also convene a variety of meetings to initiate relationships or strengthen ties across departments and service areas. These meetings include:
► Service Providers Meeting. This bimonthly meeting, convened by Palo Alto’s Office of Human Services, consists of service providers who work with unhoused Palo Altans, representatives from the faith-based community, and representatives from Santa Clara County Office of Supportive Housing. Attendees share information, problem-solve, and coordinate activities.
► Site Visits. In recent months, staff has toured the new affordable housing at Wilton Court and visited the Buena Vista Mobile Home Park, Safe Parking
5 on Geng Road, and the Opportunity Center.
► Strategic Meetings. For new initiatives, such as TRUST, staff held targeted meetings. For example, meetings to introduce TRUST workers to Human Services, Library, and Police staff. In other instances, staff new to Palo Alto are introduced to key partners, such as the organizations operating Safe Parking or Hotel de Zink.6

4 TRUST is a resource (call center and field response) to help people with mental health and/or substance abuse conditions.

There is a North County TRUST based in Palo Alto. https://momentumforhealth.org/services/community -programs/trust/ 5 Safe Parking is a program in Palo Alto which has both a congregational and a public land component. Congregational - based safe parking provides a place for residents dwelling in vehicles to park overnight. Public land safe parking provides a place to park 24 hours a day. All safe parking sites include access to restrooms, showers, and connection to services. 6 Hotel de Zink is a year-round rotating shelter program in local congregations operated by LifeMoves.

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11 Outcomes
The City is involved in many activities that relate to housing and services for unhoused residents. The following section includes a selection of outcomes of those activities.

Housing Outcomes 2022
 Permitted 120 ADUs (accessory dwelling units), 50 affordable/special needs units, 48 townhomes Palo Alto Planning and Development Department, Current Planning  Assisted 6 households with home rehabilitation
CDBG, Rebuilding Together Peninsula
 Assisted 24 individuals in investigating fair housing complaints CDBG, Project Sentinel
 Assisted 262 mostly low- or moderate-income elderly residents at long term care facilities CDBG, Catholic Charities
 Provided onsite counseling services to 151 residents of the Single Room Occupancy Support program CDBG, Alta Housing
 Assisted 26 adults with disabilities in developing an independent living plan for housing, resulting in improved affordable housing accessibility
CDBG/Silicon Valley Independent Living Center
 Provided 1,026 hours after school programming and 192 hours summer camp programming for youth, 13 in-person Family Reading Nights (literacy program), and twice monthly grocery boxes for 112 families living in affordable housing complexes
HSRAP/Alta Housing
Note: All data is from fiscal year 2022 (July 2021 - June 2022), except for permits which is for calendar year 2022.

Services for Unhoused Residents Outcomes 2022
 Served 2 meals/day each weekday to an average of 60 unhoused residents weekly HSRAP/LifeMoves, Opportunity Center
 Provided case management and assistance with housing and job searches to 56 unhoused and/or very low-income individuals
CDBG, LifeMoves, Opportunity Center
 Conducted 162 medical outreach encounters to unhoused residents HSRAP/Peninsula Healthcare Connection, Back Medicine Team  Made 485 contacts during tabling outreach at Lytton Plaza, while providing work experience program information, resources, hygiene kits, personal protective equipment (PPE), and COVID home test kits.

HSRAP/Downtown Streets Team and Peninsula Healthcare Connection  Distributed education kits to 32 children living in RVs HSRAP/Karat School Project
 Connected with 175 attendees at the Homeless Resources Fair at the Opportunity Center, interacting with over 20 resource agencies
City staff convened Palo Alto Homeless Service Providers Committee  Served 60 individuals at Palo Alto Safe Parking sites with 40% individuals and 43.75% households finding positive placements in housing
City-County partnership, Move Mountain View
Note: All data is from fiscal year 2022 (July 2021 – June 2022), except for the Homeless Resource Fair held in August 2022 and the Safe Parking data which gives program data from its launch in January 2021 through December 2022.

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12 Investment
In fiscal year 2022, the City supported a wide variety of activities relating to housing and services for unhoused residents. The following table provides a selection of the City’s financial support.

Source Recipient Activity Amount
HSRAP Grants Downtown Streets
Team
Peer to peer outreach $ 10,000
Karat School Project Education package distribution (Edu-Kits) $ 5,000 LifeMoves Caring for Palo Alto's homeless and
impoverished residents
$ 84,039
Peninsula Healthcare
Connection
Backpack medicine $ 7,000
Emerging Needs
Fund
Downtown Streets
Team
Flex fund for educational, housing and
employment needs
$ 10,000
Peninsula Healthcare
Connection
Harm reduction supplies $ 6,157
General Fund Housing Element Housing Element/Implementation $ 97,000 LEAP Grant Housing Element Housing Element $ 175,000 REAP Grant Housing Element Housing Element $ 63,262 SB2 Grant Housing Element Housing Element $ 310,000 Below Market
Rate Program -
Emergency Fund

BMR Housing
Purchase Program

Estelle Champs (Shanks) Assessment Loan $ 26,734 Edith Gilbertson Litwiller Assessment Loan $ 26,734 Residential
Housing Impact
Fee Fund

Residential Subfund

Salaries and Benefits (30010 to 30990) $ 34,894 Liability Insurance (39160) $ 855
Allocation to below market rate
administration and related consultants
(72010)
$ 178,090
Commercial
Housing In-Lieu
Fund

Salaries and Benefits $ 34,894
Liability Insurance $ 855
CDBG Alta Housing SRO Resident Support: Provide in-house case management and counseling services
to residents at Barker Hotel and Alma
Place.
$ 22,413
Catholic Charities of
Santa Clara County
Long term care ombudsman program:

Advocate for the rights of seniors and
disabled residents in long term care
facilities.
$ 10,000
LifeMoves Opportunity Services Center: Provide case
management services to Opportunity
Services Center and Hotel de Zink clients in
locating housing and/or employment and
be connected to benefits.
$ 26,660
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13 Source Recipient Activity Amount
Silicon Valley
Independent Living
Center
Housing and Emergency Services: Provide
case management services to low-income
individuals with disabilities to secure
affordable and accessible housing.
$ 14,021
Project Sentinel Fair Housing Services: Provide fair housing services including complaint investigation,
counseling, advocacy and community
education.
$ 33,698
City of Palo Alto
Planning and
Development
Department
CDBG Program Administration $ 121,81 6
Rebuilding Together
Peninsula
Safe at Home: Provision of critical health
and safety related home repair needs for
low-income Palo Alto homeowners
$ 73,135
Mitchell Park Place 525 E. Charleston Road: Funds for
predevelopment costs for a 50-unit
affordable housing complex.
$ 351,425
L
ooking forward to fiscal year 2024, there are some anticipated needs to consider:
► The City has committed $3 million for affordable housing at 525 E. Charleston Road—an affordable housing project with 50 rental units for low-income residents and 50 percent of units deed-restricted to residents with special needs.

Anticipated need: Unknown. However, the developer has requested additional funding. ► The City has committed $3 million for educator workforce housing at 231 Grant Avenue—approximately 110 affordable rental units for teachers, school employees and their families.

Anticipated need: $1 million.
► At 3001 El Camino Real there is a project undergoing the permitting process for approximately 129 affordable units.

Anticipated need: Unknown.
► The 50 affordable units at 801 Alma Street were built in part with three loans from the City totaling more than $7 million.

Anticipated need: $3 million for repairs.
► The City has committed $7 million
7 towards operating expenses and provided land for the 88 unit Palo Alto H
omekey interim housing shelter.

Anticipated need: $2-3.5 million for capital funding and permitting fees. 7 $1 million per year for seven years.

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14 Highlights for 2023
Staff anticipate a variety of activities relating to housing and services for unhoused residents in 2023, including:
► Applying $987,280 of permanent local housing allocation8 monies toward preservation of affordable housing, an outreach worker pilot program, and costs related to emergency shelters, ► Using a $2,000,000 federal earmark to provide support and outreach to North County TRUST, ► Working in collaboration with We Hope, a shelter provider in East Palo Alto, to provide up to 5 shelter beds to unhoused Palo Altans during inclement weather incidents, ► Building a program in response to funding from the National Opioid Settlement, ► Implementing the 2023-2031 Palo Alto Housing Element, including fair housing tenant protections (just cause and security deposit ordinances, rental registry), and ► Constructing the 88-unit Palo Alto Homekey interim supportive housing project. 8 https://www.hcd.ca.gov/grants-and-funding/programs-active/permanent-local-housing-allocation Thank you to the many dedicated staff who contributed to this update, especially:

Minka Van Der Zwaag, Community Services
Robert Gonzalez, Community Services
Kevin McNally, Fire
Alexander Perez, Library
Nathan Baird, Office of Transportation
Clare Campbell, Planning and De velopment
Amy French, Planning and Development
Jodie Gerhardt, Planning and Development
Tim Wong, Planning and Development
Sarah McRee, Planning and Development
Eric Jensen, Police
April Wagner, Police
Michelle Nelson, Public Works
Mike Wong, Public Works
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15 Appendix
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Analysis of Homeless Households Affiliated with the City of Palo Alto, CY2022 • 276 homeless households who took a VI-SPDAT assessment during January 1, 2022 to December 31, 2022 have an affiliation with the City of Palo Alto through answering “Palo Alto” to any of the following assessment questions:
• If employed, what city do you work in?
• If you go to school, in which city is your school?
• In which city do you spend most of your time?
• Which city did you live in prior to becoming homeless? • City of Palo Alto affiliated households (“Palo Altans”) are 4% of the total number of households who took the VI-SPDAT during this period (6,711 households) • 154 or 56% of these households took the VI-SPDAT for the first time, a measure of homeless inflow. • The following are demographics of Palo Altans who took the VI-SPDAT in CY2022:
8%, 22
20%, 54 21%, 58
17%, 46
21%, 59
13%, 37
0 10
20 30
40 50
60 70
18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 or Above By Age Tier
Male, 165,
60%
Female, 109,
40%
Transgender, 1, 0%
A gender
other than
singularly
female or
male (e.g.,
non-binary,
genderfluid,
agender,
culturally
specific
gender), 1,
0%
By Gender
Single Adult,
207, 75%
Household
with Children,
44, 16%
Household
without Children,
25, 9%
By Household Type
Non-
Hispanic/Non
-Latinx, 184,
67%
Hispanic/
Latinx, 91,
33%
Client
refused, 1,
0%
By Ethnicity
8 5 12 8 1
57 1 15
69 1 9
6 83
3%, 9 5%, 15
27%, 74
5%, 14 6%, 17
3%, 7
51%, 140
0 20
40 60
80 100
120
140
American
Indian, Alaska
Native, or
Indigenous
Asian or Asian
American
Black, African
American, or
African
Data not
collected
Multi-Racial Native Hawaiian
or Pacific
Islander
White
By Race and Ethnicity
Non-Hispanic/
Non-Latinx
Hispanic/Latinx
Client refused
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Analysis of Homeless Households Affiliated with the City of Palo Alto, CY2022 (Cont’d)3%, 911%, 315%, 159%, 2412%, 3358%, 1611%, 3020406080100120140160180Less than aweek1 week - 3months3 - 6 months 6 months to1 year1 - 2 years 2 years ormoreClientdoesn'tknowHow long has it been since you lived in permanent stable housing?Minimal Intervention, 28, 10%Rapid Rehousing Range, 98, 36%Permanent Supportive Housing Range, 150, 54%VI-SPDAT Intervention Range(Level of Need)•The following are additional characteristics of the 276 homeless Palo Altans who took the VI-SPDAT assessment during CY2022. To summarize a few observations:•54% score in the Permanent Supportive Housing range of intervention and 36% score in the Rapid Rehousing range of intervention.•Nearly 60% report 2+ years since permanent stable housing•33% report sleeping most frequently outdoors and 29% in their cars•43% report a mental health condition and 32% report a substance use disorder 4%, 103%, 98%, 2210%, 2714%, 3929%, 7933%, 900 20 40 60 80 100Data not collectedTransitional HousingCouch SurfingOtherSheltersCarOutdoorsWhere do you sleep most frequently?55%, 15332%, 8730%, 8327%, 7529%, 7918%, 5116%, 458%, 22MentalHealthSubstanceUseChronicHealthLearning/DevelopmentalDomesticViolenceVictim/SurvivorJail in Past6 MonthsFosterCareBackgroundVeteranStatusDisabilities and Other Demographics Item 14
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Enrollment of Unhoused Palo Altans in Emergency Shelters, CY2022•212 homeless households who were actively enrolled in emergency shelter programs during CY2022 have an affiliation with the City of Palo Alto through current/prior address, zip code of last permanent address, or answering “Palo Alto” to any of the following VI-SDPAT assessment questions:•If employed, what city do you work in?•If you go to school, in which city is your school?•In which city do you spend most of your time?•Which city did you live in prior to becoming homeless?•City of Palo Alto affiliated households (“Palo Altans”) are 5% of the total number of households (4,585) actively enrolled in emergency shelter programs during CY2022 (excluding FEMA Isolation Hotels/Motels).•The following chart shows the percentage of Palo Altans enrolled in:•Sunnyvale Nightly Shelter (7% of households)•North County Shelters (16% of households)•Non-North County Shelters (3% of households)North County Emergency Shelter programs include the following:•Bill Wilson Center - Youth Shelter North County•HomeFirst - Mountain View Nightly Shelter•HomeFirst - Sunnyvale Nightly Shelter•LifeMoves-Mountain View-ES-Families•LifeMoves - Lifemoves-Mountain View-ES-Singles and Couples•LifeMoves-OSC-ES-Hotel de Zink-OSH 93%, 32984%, 62297%, 3,993 7%, 2416%, 1223%, 1053537444,098

SUNNYVALE NIGHTLYSHELTERNORTH COUNTYSHELTERSOUTSIDE OFNORTH COUNTY Households Enrolled in Emergency Shelters, CY2022
Palo Altans
Other
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City of Palo Alto Results – Total Assessments and Homeless Inflow•Homeless inflow is defined here as the first time a client takes a VI-SPDAT assessment.•In 2022, Palo Alto-affiliated households make up 4.6% of total homeless inflow, which is lower than CY2021.•For homeless inflow, city affiliation is established by only VI-SPDAT assessment questions: city of work/school, city lived in prior to homelessness, and spending most of one’s time in the city.Homeless Inflow TrendYear of First Time VI-SPDATTotal Homeless Inflow (First Time VI-SPDAT)Homeless Inflow with Palo Alto AffiliationPercent with Palo Alto Affiliation2018 5,383 169 3.1%2019 4,757 138 2.9%2020 3,429 139 4.1%2021 3,165 174 5.5%2022 3,349 154 4.6% 601542760 50 100 150 200 250 300PLACED IN HOUSING (HEAD OF HOUSEHOLD): MOVE IN DATE OR EXIT TO PERMANENT HOUSINGHOMELESS INFLOW: REQUESTING ASSISTANCE FOR THE FIRST TIME (CLIENTS WHO TOOK THE VI-SPDAT FOR THE FIRST TIME IN CY2022)HOMELESS IN CY2022 (VI-SPDATS COMPLETED ANYTIME IN CY2022)Households Affiliated with the City of Palo Alto, CY2022 Item 14
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