Agenda packet — Palo Alto City Council, April 3, 2023 (part 1 of 4)

CITY COUNCIL
Special Meeting
Monday, April 03, 2023
Council Chambers & Hybrid
5:00 PM
Amended Agenda
Changes made to the agenda have been listed below in Red Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.

VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line.

PowerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted.

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

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:00 ‐ 5:20 PM)

1. Appointment of Applicants for Board and Commission Openings on the Utilities Advisory Committee, the Planning and Transportation Commission and the Historic Resources Board Title Updated

2. Introduction of Representatives from the North County TRUST (Trusted Response Urgent Support Team) alternative mental health response program AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:20 ‐ 5:35 PM)
CONSENT CALENDAR (5:35‐5:45 PM)

3. Approval of Minutes from March 20, 2023 Meeting

4. The Utilities Advisory Commission and Staff Recommend Council Adoption of Amended Utilities Rules and Regulations, to Incorporate AMI Changes and Other Updates; CEQA review – exempt (CEQA Guidelines section 15273)

5. Approval of the Utilities Department‘s 2023 Legislative Guidelines

6. 2850 West Bayshore [22PLN‐00364]: Approval of Final Map for a single‐lot subdivision for condominium purposes for 48 attached townhome condominiums. Environmental Assessment: Exempt per CEQA Guidelines Section 15332. Zoning District: ROLM (Research, Office, and Manufacturing).

7. Approval of Fourth Amendment to Santa Clara Valley Urban Runoff Pollution Prevention Program Memorandum of Agreement

8. Adopt a Resolution Expressing Concern for Public Safety and Urging State and Federal Action on Firearms in Sensitive Places.

9. Acceptance of $2,000,000 from the Consolidated Appropriation Act, 2022, Awarded by the Department of Health and Human Services Substance Abuse and Mental Health Services Administration (SAMHSA) for Assistance Related to North County TRUST (Trusted Response Urgent Support Team), an Alternative Response Pilot Program; Approval of a Contract with Momentum for Health for Assistance Related to North County TRUST with a Total Contract Amount Not to Exceed $1,931,706; and Approval of the Related Budget Amendment in the General Fund. CEQA status – not a project.

10. Approve Amendment of Seven On‐call Consulting Contracts to Increase the Not to Exceed to $3 Million Through June 2024 to Provide Expertise for Long Range Planning Projects, Application Processing, Historic and Environmental Review in the Department of Planning & Development Services, With all Work Subject to Assigned Task Order and Availability of Funds; Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3).

CITY MANAGER COMMENTS (5:45 ‐ 6:00 PM)
ACTION ITEMS (Item 11: 6:00 ‐ 7:30 PM, Item 12: 7:30 ‐ 9:00 pm, Item 13: 9:00 PM ‐ 10:30 pm)

11. Approval of the following: 1) Contract with Flock Safety (S23187316) for Automated License Plate Recognition (ALPR) Implementation for a three‐year term in an amount not to exceed $174,400; 2) ALPR Surveillance Use Policy; and 3) Budget amendment in the Supplemental Law Enforcement Services fund; CEQA status – categorically exempt (Section 15321 enforcement actions)

12. Parks and Recreation Commission Recommend Adoption of a Park Dedication Ordinance to Dedicate the 10‐acre Measure E site as Parkland. CEQA status – not a project.

13. Update, Discussion, and Potential Direction regarding State and Federal Legislation COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

14. Sales Tax Digest Summary Calendar 2022 Q3 (July 2022 – September 2022) PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone.

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

2. In person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item.

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

You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

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

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

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

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

Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance.

1 Special Meeting April 03, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:00 ‐ 5:20 PM)

1. Appointment of Applicants for Board and Commission Openings on the Utilities Advisory Committee, the Planning and Transportation Commission and the Historic Resources Board Title Updated

3. Approval of Minutes from March 20, 2023 Meeting

5. Approval of the Utilities Department‘s 2023 Legislative Guidelines

7. Approval of Fourth Amendment to Santa Clara Valley Urban Runoff Pollution Prevention Program Memorandum of Agreement

8. Adopt a Resolution Expressing Concern for Public Safety and Urging State and Federal Action on Firearms in Sensitive Places.

CITY MANAGER COMMENTS (5:45 ‐ 6:00 PM)
ACTION ITEMS (Item 11: 6:00 ‐ 7:30 PM, Item 12: 7:30 ‐ 9:00 pm, Item 13: 9:00 PM ‐ 10:30 pm)

12. Parks and Recreation Commission Recommend Adoption of a Park Dedication Ordinance to Dedicate the 10‐acre Measure E site as Parkland. CEQA status – not a project.

13. Update, Discussion, and Potential Direction regarding State and Federal Legislation COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

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

2. In person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item.

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

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

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

2 Special Meeting April 03, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:00 ‐ 5:20 PM)

1. Appointment of Applicants for Board and Commission Openings on the Utilities Advisory Committee, the Planning and Transportation Commission and the Historic Resources Board Title Updated

3. Approval of Minutes from March 20, 2023 Meeting

5. Approval of the Utilities Department‘s 2023 Legislative Guidelines

7. Approval of Fourth Amendment to Santa Clara Valley Urban Runoff Pollution Prevention Program Memorandum of Agreement

8. Adopt a Resolution Expressing Concern for Public Safety and Urging State and Federal Action on Firearms in Sensitive Places.

CITY MANAGER COMMENTS (5:45 ‐ 6:00 PM)
ACTION ITEMS (Item 11: 6:00 ‐ 7:30 PM, Item 12: 7:30 ‐ 9:00 pm, Item 13: 9:00 PM ‐ 10:30 pm)

12. Parks and Recreation Commission Recommend Adoption of a Park Dedication Ordinance to Dedicate the 10‐acre Measure E site as Parkland. CEQA status – not a project.

13. Update, Discussion, and Potential Direction regarding State and Federal Legislation COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

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

2. In person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item.

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

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

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

3 Special Meeting April 03, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:00 ‐ 5:20 PM)

1. Appointment of Applicants for Board and Commission Openings on the Utilities Advisory Committee, the Planning and Transportation Commission and the Historic Resources Board Title Updated

3. Approval of Minutes from March 20, 2023 Meeting

5. Approval of the Utilities Department‘s 2023 Legislative Guidelines

7. Approval of Fourth Amendment to Santa Clara Valley Urban Runoff Pollution Prevention Program Memorandum of Agreement

8. Adopt a Resolution Expressing Concern for Public Safety and Urging State and Federal Action on Firearms in Sensitive Places.

CITY MANAGER COMMENTS (5:45 ‐ 6:00 PM)
ACTION ITEMS (Item 11: 6:00 ‐ 7:30 PM, Item 12: 7:30 ‐ 9:00 pm, Item 13: 9:00 PM ‐ 10:30 pm)

12. Parks and Recreation Commission Recommend Adoption of a Park Dedication Ordinance to Dedicate the 10‐acre Measure E site as Parkland. CEQA status – not a project.

13. Update, Discussion, and Potential Direction regarding State and Federal Legislation COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

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

2. In person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item.

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

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

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

4 Special Meeting April 03, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection

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City Council
Staff Report
From: City Clerk
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: April 3, 2023

TITLE
Appointment of Applicants for Board and Commission Openings on the Utilities Advisory Committee, the Planning and Transportation Commission and the Historic Resources Board

RECOMMENDATION
That the Council vote to appoint candidates for the following positions:
•Three (3) vacancies on the Planning and Transportation Commission oTwo (2) full terms ending March 31, 2027
oOne (1) unexpired term ending March 31, 2025
•Four (4) vacancies on the Utilities Advisory Commission oThree (3) full terms ending March 31, 2026
oOne (1) unexpired term ending March 31, 2025
•Three (3) vacancies on the Historic Resources Board ending March 31, 2026

DISCUSSION
The City Council directed that 8 candidates for the Planning & Transportation Commission, 3 candidates for the Historic Resources Board, and 13 candidates for the Utilities Advisory Commission be scheduled for interviews. Katie Casey was also selected for an interview but withdrew her candidacy for the Utilities Advisory Commission. The interview are to be held on March 31, 2023 and the schedule (as of the publication of this packet) will be as follows:

Planning & Transportation Commission
4:00 PM George Lu Virtual
4:15 PM James Domine Virtual
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4:30 PM Scott O’Neil In-person
4:45 PM Allen Akin In-person
5:00 PM Cari Templeton (Incumbent) In-person
5:15 PM Arthur Keller Virtual
5:30 PM Alex Comsa In-person
5:45 PM Forest Olaf Peterson In-person
Historic Resources Board
6:00 PM Samantha Joy Rodman In-person
6:10 PM Christian Pease (Incumbent) In-person
6:20 PM Alisa Eagleston-Cieslewicz
(Incumbent)
In-person
Utilities Advisory Commission
6:30 PM Jason Titus In-person
6:40 PM Max Rayner In-person
6:50 PM Robert Phillips In-person
7:00 PM Benjamin Piiru Virtual
7:10 PM Greg Hood In-person
7:20 PM Chris Tucher In-person
7:30 PM Meagan Mauter Virtual
7:40 PM Claude Ezran In-person
7:50 PM Siyi Zhang In-person
8:00 PM Greg Scharff (Incumbent) In-person
8:10 PM Rachel Croft In-person
8:20 PM Natalie Geise In-Person
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8:30 PM Bob Wenzlau In-person

ATTACHMENTS
None.

APPROVED BY:

Vinhloc Nguyen, Deputy City Clerk
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: April 3, 2023
Report #:2303-1190
TITLE
Approval of Minutes from March 20, 2023 Meeting

RECOMMENDATION
That the Council review and approve the minutes from March 20, 2023.

ATTACHMENTS
Attachment A: March 20, 2023 Draft Minutes
APPROVED BY:

Lesley Milton
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CITY COUNCIL

DRAFT ACTION MINUTES

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Special Meeting
March 20, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M.

Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely: None

Absent: None

Agenda Change: City Council went to Closed Session before Special Orders of the Day

Special Orders of the Day

1. Santa Clara County 2022 Synopsys Championship Science Fair 2022 STEM Winners from Palo Alto

Closed Session

2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION – Mid-Year Check-In Authority: Gov Code section 54957(b)
Titles: City Manager, City Attorney

3. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursu ant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Tori Anthony, Molly Stump, and Jennifer Fine) Employee Organization: Service Employees International Union, (SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA), Palo Alto Peace Officers’ Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs’ Association (FCA); Authority: Government Code Section 54957.6 (a)

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Sp. City Council Meeting
Draft Action Minutes: 03/20/2023
MOTION: Council Member Lauing moved, seconded by Mayor Kou to go into Closed Session.

MOTION PASSED: 7-0
Council went into Closed Session at 5:06 P.M. and returned at 6:02 P.M.

Council reconvened Closed Session at 6:13 P.M. and returned at 8:36 P.M.

Mayor Kou announced there were no reportable actions.

Agenda Changes, Additions and Deletions
None.

Public Comment

Consent Calendar
Council Member Tanaka registered a no vote on Agenda Items 7, 9.

MOTION: Council Member Burt moved, seconded by Council Member Lauing to approve Agenda Item Numbers 4-11.

PASSED Items 4-6, 8, 10, 11: 7-0
PASSED Items 7, 9: 6-1 Tanaka no

4. Approval of Minutes from March 6, 2023 Meeting

5. Authorize Transmittal of the 2022 Comprehens ive Plan Annual Progress Report to the Office of Planning and Research and the 2022 Housing Element Annual Progress Report to the Department of Housing and Community Development.

6. 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

7. 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).

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8. Approval of Office of the City Auditor's Utility Work Order Process and Control Review Report

9. SECOND READING: Ordinance 5578 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)

10. SECOND READING: Adopt a Park Improvement Ordinance 5579 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

11. SECOND READING: Adoption of an Ordinance 5580 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)

City Manager Comments

Action Items

12. Review and Revision of the Council Procedures and Protocols Handbook – Focus on Protocols – Including Consideration of Policy and Services Committee Recommended Changes

ORIGINAL MOTION: Vice Mayor Stone moved, seconded by Council Member Burt to Adoption of Section 1 with the following amendments:
• 1.4 A Include language regarding encouraging factual dialogue during meetings and within the public domain Council Members should refrain from repeating false and misleading information • 1.6 C Include language; in the absence of explicit direction, when the Council Member is aware of a prior position the Council has taken the Council Member will adopt that position • 1.7 F To include language clarifying Council Member votes on regional bodies where they represent a regional group
• 1.7 I Replace “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.” With the previous language of “Council Members shall refrain from coercing staff i n making recommendations to the Council as a whole.”
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MOTION SPLIT FOR PURPOSE OF VOTING
MOTION: Vice Mayor Stone moved, seconded by Council Member Burt to Adoption of Section 1 with the following amendments:
• 1.4 A Include language regarding encouraging factual dialogue during meetings and within the public domain Council Members should refrain from repeating false and misleading information MOTION PASSED: 6-1, Tanaka no

MOTION: Vice Mayor Stone moved, seconded by Council Member Burt to Adoption of Section 1 with the following amendments:
• 1.6 C Include language; in the absence of explicit direction, when the Council Member is aware of a prior position the Council has taken the Council Member will adopt that position • 1.7 F To include language clarifying Council Member votes on regional bodies where they represent a regional group
• 1.7 I Replace “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.” With the previous language of “Council Members shall refrain from coercing staff in making recommendations to the Council as a whole.”
MOTION PASSED: 7-0

MOTION: Council Member Lauing moved, seconded by Mayor Kou to Adoption of Section 2 with the following amendments:
2) Refer to Policy and Services Committee further work on:
(iii) Section 2.2 (refrain from lobbying board/commission members): disallow Commissioners from lobbying Council Members after a vote has taken place MOTION PASSED: 5-2, Tanaka, Lythcott-Haims no

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MOTION: Council Member Lauing moved, seconded by Mayor Kou to Adoption of Section 2 with the following amendments:
1) Modify to read 2.4: A Council Member may involve a chair of a commission or the liaison to the commission if there is one.”
2) Refer to Policy and Services Committee further work on:
(i) Section 2.8 related to the role of the Council liaison and ask Policy and Services Committee to involve Board / Commission members, and review the statement “in understanding likely Council perspectives”
(ii) Consider replacement with “In understanding Council’s positions on perspectives.”, and (iii) Section 2.2 (refrain from lobbying board/commission members): disallow Commissioners from lobbying Council Members after a vote has taken place MOTION PASSED: 7-0

MOTION: Council Member Burt moved, seconded by Vice Mayor Stone to adopt Section 3 with the following amendments:

A. Amend Section 3.1 changing the language from “there will be” to “shall” MOTION PASSED: 7-0

MOTION: Mayor Kou moved, seconded by Council Member Burt to adopt Section 4 with the following amendments:

Approve a revised Section 4 which would include the following:

A. Retained Section 4.8 (Mayor and Vice Mayor additional compensation),

B. Amended Section 4.10 (miscellaneous expenses) to include:
o X.1 Expenditure of City Council Contingency Funds
o Expenditures from the City Council Contingency budget if under $10k requires agreement of Mayor and Vice Mayor along with notification of the Council at a public meeting during Council Member Comments and Announcements. If two Council Members request the allocation and do not receive Council approval, it would be agendized at a subsequent meeting. If over 10k, must be directed by Council motion, either via a Item 3
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colleague’s memo on the Consent Calendar or as part of an agendized item.
o Referral to Policy and Services establishment of appropriate parameters for Council Discretionary Expenditures and consider modify Section 4, X.1 to allocate $2,000 annually from the contingency fund for each Council Member to decide its purpose
o 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.
o x.3 Expenditure for Annual Holiday Event
Expenditures of up to $1,500 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.

C. Revised travel section that includes the language below:
o Councilmember travel expenses and reimbursements will adhere to Citywide Travel Arrangements and Expense Reimbursement Policy (Administrative Policy 1-02/ASD)
o Retain the following Sections:
o Section 4.4 (activities not considered reimbursable), o Section 4.6 (reports to Council),
o Section 4.7 (violation of this policy),
o Section 4.9 (support services)
o Addition of the following language:

1. The limit on how many times a Councilmember can travel in a year with reimbursement will be 6 times, subject to budget availability

2. Refer to Policy and Services for consideration of:
- International travel will/will not be approved for reimbursement. - For international travel, any Mayoral or City Council international travel expenses related to Sister Cities will have _______ covered by the City.

4. Councilmember travel will be approved by Mayor_.

MOTION PASSED: 7-0
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Draft Action Minutes: 03/20/2023

MOTION: Council Member Veenker moved, seconded by Council Member Lauing to adopt Section 5 as presented.

MOTION PASSED: 7-0

13. Colleague’s Memo Council Contingency Fund request for Try Harder! A Palo Alto Community Screening Event
MOTION: Council Member Veenker moved, seconded by Council Member Lythcott Haims to provide to YCS $3,000 for the film license and screening fee from the Council Contingency Fund.

MOTION PASSED: 7-0

Council Member Questions, Comments and Announcements

Adjournment: The meeting was adjourned at 11:45 P.M.

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

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

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

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: April 3, 2023

TITLE
The Utilities Advisory Commission and Staff Recommend Council Adoption of Amended Utilities Rules and Regulations, to Incorporate AMI Changes and Other Updates; CEQA review – exempt (CEQA Guidelines section 15273)

RECOMMENDED MOTION
The Utilities Advisory Commission and Staff recommend that the Council adopt the attached Resolution (Attachment A) amending Utilities Rules and Regulations 2, 8, 9, 10, 15, 18, 20, and Utilities Rate Schedules C-1 and C-4, as shown attached.

EXECUTIVE SUMMARY
Utilities Rules and Regulations (Rules) are updated as needed to ensure current procedures are in place to continue City of Palo Alto Utilities (CPAU) operations. The recommended changes to the various Rules and Regulations add new provisions, remove outdated sections, update language for clarity, and reflect changes to applicable regulations, business practices and procedures. Rule and regulation changes for Rule 2, 9, 10, 15, and 20 are related to deployment of Advanced Metering Infrastructure (AMI) metering equipment including a customer opt-out program and remote disconnection and reconnection procedures. Revisions to two rate schedules (C-1 and C-4) are required to reflect new cost recovery fees for customers seeking to opt out from the AMI program. Rules and regulation changes for Rule 8 and 18 clarify a customer’s responsibility to provide unobstructed access to meters, service lines, and other facilities in order for CPAU to provide utility services.

BACKGROUND
The changes below include new Opt-Out and Electric Meter Remote Disconnect policies that were discussed at Utilities Advisory Commission (UAC) (June 8, 2022, Staff Report 14288, and November 2, 2022, Staff Report 14794) and are proposed to be incorporated into Utilities Rules and Regulations 9 (“Discontinuance, Termination and Restoration of Service”) and 10 (“Meter Item 4
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Reading”). Most of the changes do not impact long range planning, policies, or programs. The changes mainly reflect daily operational changes and procedures that are currently in place.

Advanced Metering Infrastructure (AMI) is commonly referred to as “smart meter/advanced meter” or “smart grid” technology. AMI-enabled meters utilize radio and cell signal telecommunication channels to detect and transmit meter data (i.e. meter number, interval meter reads, meter alarms) from utility meters. No personally identifiable information is stored or passed in the AMI meters or data collectors. CPAU will replace old legacy electric meters with new advanced electric meters and retrofit existing water and gas meters with AMI radios. Council approved the AMI project on October 18, 2021 (Staff Report #13665).

The new and upgraded meters will be able to provide near-real time data on energy and water consumption and voltage information. When the AMI system becomes fully operational in 2024, residents and businesses will be able to monitor ongoing utility consumption data and make informed decisions about energy and water use based on what they observe, such as the power usage from different appliances or at different times of day. AMI will also alert customers of water leaks via email, text, and voice. CPAU views this as a benefit to customers, and a way to provide more effective utility services.

DISCUSSION
Twenty-nine Utilities Rules and Regulations (Rules) set forth the conditions under which the City provides utility services to customers from both the Utilities Department (electric, natural gas, water, wastewater, fiber optic) and the Public Works Department (refuse, storm drain). The Rules are updated on as-needed basis to reflect current standards and business practices, and to streamline language to make the rules more user-friendly and provide for ease of administration.

Each of the Rules below includes changes reflecting this approach; additional specific edits are noted below, and redlined copies of each rule are attached to this report. Rate schedules are updated as needed to reflect the costs of providing utility service and meeting utility operating expenses, in this case, the cost of manual meter reading and bill processing for customers who opt out of the AMI program functionality.

Opt-Out Policy (Electric and Gas)
Based on previous feedback from Council and UAC, CPAU will provide residential customers an alternative to a standard advanced meter installation through an AMI Opt-Out Policy, as reflected in updated utilities Rate Schedules and Rules and Regulations. According to national statistics, CPAU anticipates approximately 0.5% of customers may want to opt out of the AMI program (150 Item 4
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of 30,000 customers). Customers who opt out will not be able to realize the benefits of an advanced meter. If a residential customer wishes to opt out of the AMI electric and/or gas program, they will be given the opportunity to opt out either before or after their advanced meter upgrade. CPAU will not be providing a water meter opt-out option since water meters are typically located in the public right of way and distant from the home.

If a customer wishes to opt out and keep their existing (legacy) meter, customers must notify CPAU before a new AMI-enabled meter is installed. Customers will be notified of scheduled meter replacement via direct mailer and email if available at least one week in advance of installation. Customers will also receive a door hanger when the AMI installer is on-site to perform the installation. If customers contact CPAU after the AMI meter is installed, the AMI meter’s radio transmission communications will be turned off and disabled remotely, and meters will be read manually.

Electric Meter Remote Disconnect/Reconnect Policy
One major operational benefit of AMI is reducing the cost and number of utility service vehicles being dispatched (truck roll) for customer disconnection and reconnection. By decreasing the number of truck rolls, the City’s carbon footprint is also reduced, and utility resources can be reassigned to other services. Remote disconnect meters have a breaker inside of them that can be controlled remotely. This will be an effective solution for customers who are turned on and off frequently as well as residences that have a high turnover such as rental properties or apartment complexes.

Utilities Rules and Regulations (2, 8, 9, 10, 15, 18, 20) Utilities Rule and Regulation 02 (Definitions and Abbreviations) Rule and Regulation 2 describes commonly used industry acronyms and the definitions of various terms used throughout Rules. The proposed changes include a definition of AMI and a minor update to the Point of Service terminology to be consistent with the change in Utilities Rule and Regulation 20, “Special Electric Utility Regulations”, and clarifications around the definition of charges and taxes.

AMI is an integrated system of “smart” or advanced meters, communications networks, and data management systems that enables two-way communication between utilities and customers.

AMI uses radio-based technology to read and transmit daily interval usage data and alarms from meters.

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Utilities Rule and Regulation 08 (Access to Premises)
The recommended amendments to Rule 8 clarify the customer’s responsibilities in keeping the meter and meter facilities clear of obstruction, debris, and vegetation in order for CPAU to provision utility services.

Utilities Rule and Regulation 09 (Discontinuance Restoration) The recommended amendments to Rule 9 include adding a new section for remote disconnect and reconnect services from the meter. CPAU will use the remote disconnect/reconnect feature enabled on the new AMI electric meters. The use of this feature allows for the disconnection and/or reconnection of an electrical service to a service address without CPAU staff being physically present at the meter location.

Utilities Rule and Regulation 10 (Meter Reading)
The recommended amendments to Rule 10 add a new section for customers who may choose to opt out and temporarily keep their existing (legacy) meter by notifying CPAU before a new AMI- enabled meter is installed. Opt-out customers will be assessed opt-out fees to recover costs for Customer Service, Meter Reading and Billing for manual monthly billing, as reflected in the updated rate schedules described below.

Utilities Rule and Regulation 15 (Metering)
The recommended amendments to Rule 15 expand provisions relating to meter installation to also cover installing or updating related metering equipment as needed to maintain standards and update outdated equipment that maintains or improves on the functionality of CPAU’s utility services.

Utilities Rule and Regulation 18 (Utility Service Connections and Facilities on Customers' Premises)
The recommended amendments to Rule 18 stipulate CPAU must have the flexibility and ability to relocate or modify Utility Service Lines or Points of Service for the purpose of meeting quality control standards, updating outdated equipment, or otherwise improving the functionality of Utility Services.

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Utilities Rule and Regulation 20 (Special Electric Utility Regulations) The recommended amendments to Rule 20 are to be consistent with Utilities Rule and Regulation 15, “Metering”, to reflect CPAU’s ability to install not only meters but any related equipment needed to maintain standards and update outdated equipment in order to maintain or improve on the functionality of CPAU’s utility services.

Utility Rate Schedules (C-1 and C-4)
The set-up charge is to recover costs of establishing a new meter reading route for opt-out customers and verifying customer’s eligibility to participate in the program. The ongoing monthly charge recovers staff time for reminding customers to submit self reads, collecting and entering the self reads, reviewing against historical reads for anomalies, validating the monthly read, and performing an annual visual inspection of the meter.

Utility Rate Schedule C-1 (Utility Miscellaneous Charges) The recommended amendments to Rate Schedule C-1 includes the Opt-Out fees for AMI. A one- time non-refundable set up charge in the amount of $100 will be billed on the customer residential account. In addition, a recurring monthly fee of $25 will be billed to the residential account to cover the costs of utility billing and manual meter read verification.

Utility Rate Schedule C-4 (Residential Rate Assistance Program) The recommended amendments to Rate Schedule C-4 includes the Opt-Out fees for AMI. For low-income customers enrolled in the RAP program, a one-time set-up charge is $50 with a recurring monthly fee of $10. Customers can opt into the AMI program at any time to discontinue the opt-out fees for no charge.

RESOURCE IMPACT
Approval of changes to Utilities Rules and Regulation 2, 8, 9, 10, 15, 18, 20, Rate Schedules C-1 and C-4 will not result in a significant change in net operating revenues or expenses. The Residential Rate Assistance Program will be funded by Public Benefits funds.

POLICY IMPLICATIONS
These recommendations do not represent a change in current City policies.

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STAKEHOLDER ENGAGEMENT
The UAC unanimously approved (6-0, Bowie absent) the recommendation for Council adoption of the proposed rules and regulations changes and rate schedules, including the AMI opt-out and electric meter remote disconnect/reconnect policies, at the November 2, 2022 UAC meeting (Staff Report 14794) with minor language clarification edits.

UAC requested staff to refine the definition of AMI including “daily interval” instead of “near-real time” usage data. UAC received confirmation that the two written disconnection notices (10-Day Late Notice and 48-Hour Disconnect Notice) to customers is applicable to both physical and remote disconnection. UAC also inquired how the $100 one-time and $25 monthly opt out fees were established. Staff explained the fees are set to recover staff’s time to administer the opt out program, validate and enter the monthly reads manually, and perform a physical audit of the meters annually. UAC requested staff to review the fees in a couple years to determine if staff time or costs have changed.

CPAU will provide AMI project updates at www.cityofpaloalto.org/ami.

ENVIRONMENTAL REVIEW
Council finds that the adoption of revised rate schedules in this Resolution is statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15273(a), because the fees and charges proposed are necessary to recover the cost of providing utility service and meet operating expenses. After reviewing the reports presented, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. Council finds that the adoption of revised Utility Rules and Regulations does not meet the definition of a “project” under Public Resources Code Section 21065 or CEQA Guidelines Section 15378(b)(2).

ATTACHMENTS
Attachment A: Resolution
Attachment B: Rule 02 Definitions and Abbreviations
Attachment C: Rule 08 Access to Premises
Attachment D: Rule 09 Discontinuance Restoration
Attachment E: Rule 10 Meter Reading
Attachment F: Rule 15 Metering
Attachment G: Rule 18 Utility Service Connections and Facilities on Customers' Premises Item 4
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Attachment H: Rule 20 Special Electric Utility Regulations Attachment I: Utility Rate Schedule C-1
Attachment J: Utility Rate Schedule C-4
APPROVED BY:

Dean Batchelor, Director Utilities
Report #:
2301-0887
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027022223
Resolution No. ______
Resolution Amending Utility Rate Schedule C-1 (Utility Miscellaneous Charges), Utility Rate Schedule C-4 (Residential Rate Assistance Program), Utilities Rule and Regulation 2 (Definitions and Abbreviations), Utilities Rule and Regulation 8 (Access to Premises), Utilities Rule and Regulation 9 (Disconnection, Termination and Restoration of Service), Utilities Rule and Regulation 10 (Meter Reading), Utilities Rule and Regulation 15 (Metering), Utilities Rule and Regulation 18 (Utility Service and Facilities on Customer Premises), Utilities Rule and Regulation 20 (Special Electric Utility Regulations)

RECITALS
A. In October 2021, Council approved the Advanced Metering Infrastructure (AMI) project to install equipment, software, and services capable of delivering billing and interval reads from customer meters, including networking infrastructure components and the installation thereof, AMI-integrated electric meters, water and gas endpoints/modules, and other ancillary equipment (batteries, water meter pit lids, etc.) necessary to attain functionality, and software integration services to tie the AMI headend to other business-critical systems.

B. Revisions to the Utilities Rules and Regulations are required to incorporate concepts specific to the AMI equipment and services, to clarify Rules, and to update two rate schedules to reflect new fees for customers seeking to opt out from the AMI program.

The Council of the City of Palo Alto does Hereby RESOLVE, as follows:

SECTION 1. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule C-1 (Utility Miscellaneous Charges) of the Palo Alto Utilities Rates and Charges is hereby amended to read as attached and incorporated. The foregoing Utility Rate Schedule, as amended, shall become effective April 3, 2023.

SECTION 2. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule C-4 (Residential Rate Assistance Program) of the Palo Alto Utilities Rates and Charges is hereby amended to read as attached and incorporated. The foregoing Utility Rate Schedule, as amended, shall become effective April 3, 2023.

SECTION 3. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 2 (Definitions and Abbreviations) is hereby amended as attached and incorporated. Utility Rule and Regulation 2, as amended, shall become effective April 3, 2023.

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027022223
SECTION 4. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 8 (Meter Reading) is hereby amended as attached and incorporated. Utility Rule and Regulation 8, as amended, shall become effective April 3, 2023.

SECTION 5. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 9 (Disconnection, Termination and Restoration of Service) is hereby amended as attached and incorporated. Utility Rule and Regulation 9, as amended, shall become effective April 3, 2023.

SECTION 6. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 10 (Meter Reading) is hereby amended as attached and incorporated.

Utility Rule and Regulation 10, as amended, shall become effective April 3, 2023.

SECTION 7. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 15 (Metering) is hereby amended as attached and incorporated. Utility Rule and Regulation 15, as amended, shall become effective April 3, 2023.

SECTION 8. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 18 (Utility Service and Facilities on Customer Premises) is hereby amended as attached and incorporated. Utility Rule and Regulation 18, as amended, shall become effective April 3, 2023.

SECTION 9. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 20 (Special Electric Utility Regulations) is hereby amended as attached and incorporated. Utility Rule and Regulation 20, as amended, shall become effective April 3, 2023.

SECTION 10. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.
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027022223
SECTION 11. Council finds that the adoption of revised rate schedules in this Resolution is statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15273(a), because the fees and charges proposed are necessary to recover the cost of providing utility service and meet operating expenses. After reviewing the reports presented, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.

Council finds that the adoption of revised Utility Rules and Regulations does not meet the definition of a “project” under Public Resources Code Section 21065 or CEQA Guidelines Section 15378(b)(2).

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:
________________________________ ________________________________ City Clerk Mayor
________________________________ ________________________________ Assistant City Attorney City Manager
________________________________
Director of Utilities
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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 1
A. ABBREVIATIONS
AMI - Advanced Metering Infrastructure
AMR - Automated Meter Reading
AER - Advance Engineering Request
APGA - American Public Gas Association
ARB - Air Resources Board (California)
AWWA - American Water Works Association
Btu - British Thermal Unit
ccf - Hundred Cubic Feet (water)
CEC - California Energy Commission
CNG - Compressed Natural Gas
CPAU - City of Palo Alto Utilities
CPI - Consumer Price Index
CPUC - California Public Utilities Commission
DOE - Department of Energy (Federal)
DOT - Department of Transportation (Federal)
DSM - Demand-side Management
EVSE - Electric Vehicle Supply Equipment
ERT - “Encode, Receive, Transmit”
ERU - Equivalent Residential Unit
FERC - Federal Energy Regulatory Commission
GPM - Gallons Per Minute
kVar - Kilovar
kVarh - Kilovar-hours
kW - Kilowatt
kWh - Kilowatt-hour
LCFS - Low Carbon Fuel Standard
MW - Megawatt
MMBtu - One million Btu.

NCPA - Northern California Power Agency
NEC - National Electric Code, Latest Version
NEM - Net Energy Metering
NEM 1 - Net Energy Metering Program
NEM 2 - Net Energy Metering Successor Program
NEMA - Net Energy Metering Aggregation
NEMIA - Net Energy Metering Interconnection Agreement
NRTL - Nationally Recognized Testing Laboratory
PAMC - Palo Alto Municipal Code
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UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
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PSIG - Per square inch gauge
RAP - Rate Assistance Program
PPA - Power Purchase Agreement
PST - Pacific Standard Time
RTP - Real-time Pricing
RWQCP - Regional Water Quality Control Plant
TOU - Time of Use
WAPA - Western Area Power Administration
UUT - Utilities Users Tax
B. GENERAL DEFINITIONS
Account
The identification number in CPAU’s billing system for Utility Services.

Advance Engineering Fee
A non-refundable fee paid at the start of an engineering review process. The Advance Engineering Fees will be credited against the estimated job cost prior to collection of construction fees.

Advanced Metering Infrastructure
A technology system using radio and cell signal telecommunication channels to detect and transmit data from “smart” utility Meters, enabling Customers to view near-real time consumption data through the Customer web portal.

Agency
Any local, county, state or federal governmental body or quasi-governmental body, including, without limitation, the CPUC, the FERC and any joint powers agency, but excluding the City and any board, commission or council of the City.

Aggregation Customer
A Customer with a Renewable Electrical Generation Facility wishing to install an eligible Renewable Electrical Generation Facility that is sized to offset separately metered electric loads on adjacent or contiguous properties that are solely owned, leased, or rented by that Customer, and who has signed the Net Energy Metering Interconnection Agreement for NEM Aggregation.

Affected System
An Electric system, other than CPAU’s Distribution or Transmission System, that may be affected by a Customer’s proposed Interconnection of a Generating Facility.

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RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
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Effective 10-21-2019TBD
Sheet No 3
Affected System Operator
The entity that operates an Affected System.

Applicant
An individual, corporation, partnership, Agency, or other legal entity or authorized agent of same, requesting CPAU to supply any or all of the following:

1. Electric Service

2. Water Service

3. Gas Service

4. Wastewater Collection

5. Refuse Service

6. Storm and Surface Water Drainage Service

7. Fiber Optics Service
Or, an entity submitting an Application for Interconnection pursuant to Utilities Rule and Regulation 27.

Application (for Interconnection of Generating Facilities) An approved standard form (Load Sheet) submitted to CPAU for Interconnection of a Generating Facility.

Backflow Prevention Assembly
Approved device to prevent water from Customer plumbing from flowing into the City’s Water Distribution System.

Beneficiary Account
The Electric Service Meter(s) serviced by an Aggregation Customer’s Generating Facility, as listed on the Aggregation Customer’s NEM Aggregation Interconnection Agreement.

Bidweek Price Index
The price reported in Natural Gas Intelligence “NGI’s Bidweek Survey”, California “PG&E Citygate” under the column “avg.” for the calendar month.

Billing Period
Also “service period” or “billing cycle”. The normal Billing Period for CPAU Customers is 27 to 33 days with variations occurring due to staff availability, holiday scheduling, field verification of Meter readings, or any other billing-related issues requiring additional investigation prior to issuance of the bill.

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British Thermal Unit
Also “Btu”. The standard sub-unit of measurement comprising a Therm of natural Gas. One (1) Therm equals 100,000 Btu.

Business Day
Any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City.

Business Partner
A Utilities customer having multiple service locations in the City of Palo Alto. ccf (lower case)
One hundred cubic feet of water (748 gallons).

Certification Test
A test pursuant to Utilities Rule and Regulation 27 that verifies conformance of certain equipment with approved performance standards in order to be classified as Certified Equipment. Certification Tests are performed by NRTLs.

Certification; Certified; Certificate
The documented results of a successful Certification Test.

Certified Equipment
Equipment that has passed all required Certification Tests.

Charge
Any assessment, cost, fee, surcharge or levy for Utility Service other than a Tax, including metered and unmetered Utility Service, capacity, connections, construction, penalties, and mandated or required Customer financial obligations for Service.

Charter
The Charter of the City of Palo Alto.

City Attorney
The individual designated as the City Attorney of the City under Section 2.08.120 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Attorney.

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CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 5
City’s Collector
The Person(s) authorized under Section 5.20.040 of the Palo Alto Municipal Code to provide collection, processing and disposal of Refuse including Solid Waste, Compostable Materials and Recyclable Materials pursuant to one or more written contracts with the City.

City Lateral
A City Lateral (also known as a Lower Sewer Lateral) is the portion of the Sewer Lateral that is owned and maintained by the City. A City Lateral typically is the lower portion of a Sewer Lateral downstream from the City Sewer Cleanout.

City Manager
The individual designated as the City Manager of the City under Section 2.08.140 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Manager.

City of Palo Alto, or City
The government of the City of Palo Alto, a chartered City and a municipal corporation duly organized and validly existing under the Laws of the State of California, with a principal place of business located at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. For the purposes of these Rules and Regulations, the term “City” may include services provided by both the City of Palo Alto Utilities Department and the City of Palo Alto Public Works Department.

City of Palo Alto Public Works Department (Public Works) The City Department responsible for providing Refuse Service, Wastewater Treatment and Storm and Surface Water Drainage Services. Other Utility Services such as Water, Gas, Electric, Wastewater Collection, and Fiber Optics are provided by the City of Palo Alto Utilities Department.

City of Palo Alto Utilities Department (CPAU)
The City Department responsible for providing Water, Gas, Electric, Wastewater Collection and Fiber Optic Utility Services. Other Utility Services such as Refuse Service, Wastewater Treatment and Storm and Surface Water Drainage are provided by the City of Palo Alto Public Works Department.

City Sewer Cleanout
A sewer cleanout is a point of access where the Sewer Lateral can be serviced. The City Sewer Cleanout typically marks the transition point between the City Lateral (Lower Sewer Lateral) and the Customer’s Upper Lateral, as further described in Utilities Rule and Regulation 23. .

CNG Vehicle
A vehicle powered by compressed natural gas.

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UTILITIES RULES AND REGULATIONS
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Effective 10-21-2019TBD
Sheet No 6
Code
The words "the Code" or "this Code" shall mean the Palo Alto Municipal Code.

Commercial Service
Commercial Utility Service is provided to businesses, non-profit organizations, public institutions, and industrial Customers. The term also applies to Utility Services through Master Meters serving multi- family Residential dwellings and common areas of multi-family facilities.

Compostable Materials
Organic materials designated by the City as acceptable for collection and processing, including, without limitation, yard trimmings, food scraps, soiled paper and compostable plastics, but excluding animal manure, sewage sludge, and human biological infectious wastes.

Container
Any bin, box, cart, compactor, drop box, roll-off box, or receptacle used for storage of Solid Waste, Recyclable Materials, Compostable Materials or other materials designated by the City to be collected by the City’s Collector.

Cooling Degree Days
The number of the degrees per day that the daily average temperature is above 65 degrees Fahrenheit. The daily average temperature is the mean of the maximum and minimum temperatures for a 24-hour period.

Cross Bore
A Cross Bore is the unintended conflict between one utility line and a portion of another utility line. This situation can happen during construction using “horizontal directional drilling” or underground pneumatic boring.

Cross Bore Inspection Program
The Cross Bore Inspection Program inspects City Laterals and Private Laterals to find and repair Gas pipes that pass through existing Sewer Laterals.

Cross Connection
Cross Connections are any actual or potential unapproved unprotected connections between a potable water system and any source or system containing unapproved water or a substance which may not be safe.

Cross Connection Control and Backflow Prevention Program This program protects the quality of drinking Water by preventing contaminants in private Service pipes from entering the Water Distribution system.

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Effective 10-21-2019TBD
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Cubic Foot of Gas (cf)
The quantity of Gas that, at a temperature of sixty (60) degrees Fahrenheit and a pressure of 14.73 pounds per square inch absolute, occupies one cubic foot.

Curtailment
The act of reducing or interrupting the delivery of natural Gas.

Customer
The Person, corporation, Agency, or entity that receives or is entitled to receive Utility Service(s) from the City of Palo Alto, or in whose name Service is rendered for a particular Account as evidenced by the signature on the Application, contract, or agreement for Service. In the absence of a signed instrument, a Customer shall be identified by the receipt of any payment of bills regularly issued in the name of the Person, corporation, or Agency regardless of the identity of the actual user of the Utility Service(s).

Customer-Generator
A Customer who is an “eligible customer-generator,” as that term is defined by the California Public Utilities Code section 2827, as the same may be amended from time to time.

Dark Fiber (Optic)
A Fiber Optic cable provided to end-users or resellers by CPAU without any of the light transmitters, receivers, or electronics required for telecommunications over the Fiber. Transmission equipment for Fiber Optic activation service is provided by the reseller or end-user.

Dark Fiber (Optic) Infrastructure
The components of the CPAU Fiber Optic Distribution System required to provide Service to Customers (licensees), that are attached, owned, controlled or used by the City, located overhead or underground within the Public Right-of-Way, the Public Utility Easements and Leased Service Properties.

Dark Fiber (Optic) Licensing Agreement
The mandatory contractual agreement between the City and the Customer specifying the terms, conditions and pricing to access the City of Palo Alto’s Dark Fiber (Optic) Ring.

Dedicated Distribution Transformer
A distribution transformer that is dedicated to serving a single premise.

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RULE AND REGULATION 2

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Issued by the City Council
Effective 10-21-2019TBD
Sheet No 8
Demand
The highest rate of metered delivery of Electric energy, measured in Kilowatts (kW) or kilovolt amperes (kVA) occurring instantaneously or registered within a specified time interval (normally fifteen minutes within a monthly billing cycle, unless otherwise specified).

Demand Charge
An electrical Charge or rate that is applied to a metered Demand reading, within a specified interval, expressed in Kilowatts (kW) to compute the Demand Charge component of a Customer’s Electric bill.

Demand-side Management
The planning, implementation, and monitoring of Utility activities designed to encourage commercial, residential, agricultural, and institutional Customers to modify patterns of electricity, natural gas, and water usage, including the timing and level of demand. Demand-side management also covers the complete range of electric load-shape objectives, including strategic conservation, load management, and strategic load growth.

Demarcation Point
The Demarcation Point for a project shall be the Customer side of the panel onto which the CPAU Fiber terminates within the Customer Premises, unless otherwise specified in the Proposal for Dark Fiber Services.

Deposit
A fixed amount (for residential customers), or an estimated amount based upon usage (for commercial customers, except Fiber Optic), to be paid to the Utilities Department upon submission of an Application for Service. See Utilities Rule and Regulation 7, “Deposits.” Detailed Study
An engineering study consisting of an Interconnection System Impact Study and an Interconnection Facilities Study for the purpose of identifying Interconnection Facilities, Distribution Upgrades, and Reliability Network Upgrades.

Disconnection Notice
A final written notice from CPAU to the Customer indicating the date that all Utilities Services will be disconnected for non-payment unless payment is tendered to mitigate an outstanding balance, or until a Payment Arrangement is completed with CPAU for repayment over time. See Utilities Rule and Regulation 9, “Disconnection, Termination, and Restoration of Service.” Item 4
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Effective 10-21-2019TBD
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Distribution Services
This includes, but is not limited to, Utility Service provided by the City’s Distribution System and other Services such as billing, Meter reading, administration, marketing, and Customer Services. Distribution Services do not include Services directly related to the Interconnection of a Generating Facility, as per Utilities Rule and Regulation 27.

Distribution System
The infrastructure owned and operated by CPAU which is capable of transmitting electrical power, other than Interconnection Facilities, or transporting Water, Wastewater, or Gas within the City of Palo Alto.

The Electric Distribution System transmits power from the City’s Interconnection with PG&E to CPAU’s Meter located on the Customer’s Premises. The Gas Distribution System transports Gas from PG&E receiving stations to CPAU’s Meter located on the Customer Premises. The Water Distribution System transports Water from the San Francisco Water Department receiving stations and CPAU wells to the meter located on the Customer Premises. The Wastewater Collection System transports sewage from the Customer’s Premises to the Water Quality Control Plant.

Duct
A single, enclosed thoroughfare for conductors, cables, or wires.

Easement
See Public Utility Easement.

Efficiency
The ratio of water or energy input to useful output, measured at either a single point in time, or measured change in ratio over time.

Effluent
Treated or untreated Wastewater flowing out of a Wastewater treatment facility, sewer, or industrial outfall.

Elasticity of Demand
The ratio of the percentage change in consumer demand to the percentage change in price. If the ratio is more than one, demand is elastic (sensitive to price).

Electric Distribution
The process of delivering electric energy to customers on a utility’s distribution system. Transmission lines carry electricity at high voltage to substations which reduce the voltage and distribute the electricity over primary distribution lines that extend throughout the service territory.

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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 10
Electric, Electric Service
A Utility Service provided to residents and business owners in the City of Palo Alto consisting of the generation, transmission, and distribution of electrical power for retail use. Electric Service is provided by the City of Palo Alto Utilities Department.

Electric Vehicle
A vehicle powered by an electric motor that draws current from rechargeable storage batteries, fuel cells, photovoltaic arrays, residential or commercial charging kiosks, or other sources of electric current.

Electric Vehicle Supply Equipment (EVSE)
The conductors, including the ungrounded, grounded, and equipment grounding conductors and the electric vehicle connectors, attachment plugs, and all other fittings, devices, power outlets, or apparatus installed specifically for the purpose of transferring energy between the premises wiring and the electric vehicle. EVSE is as defined in the California Electrical Code, California Code of Regulations (CCR), Title 24, Part 3, Chapter 6, Article 625 (Electric Vehicle Charging System), as amended.

Enterprise Funds, Enterprise Services
A budgetary identification for individual Utilities services. Each individual Utility (electric, natural gas, water, wastewater, storm drain, fiber optic, refuse) has its own operating and capital budgets, staffing, contracts, financial obligations, cash reserves, etc. combined into specific Enterprise Funds.

Emergency
An actual or imminent condition or situation, which jeopardizes CPAU’s Distribution System Integrity.

Emergency Service
The Electric Service supplied to, or made available to, Load devices which are operated only in Emergency situations or in testing for same.

Energy Services
The Energy commodity and any applicable ancillary Services used to generate and transport such commodity from its origin to the City’s Point of Receipt. May also mean the sale of value-added Services associated with or related to the Provision and/or usage of the energy commodity.

Energy Storage Facility, Energy Storage System
A facility or storage system that is an “energy storage system,” as that term is defined by the California Public Utilities Code section 2835, as the same may be amended from time to time.

End Points
The respective start and termination of a Fiber Optic cable.

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RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 11
Equivalent Residential Unit (ERU)
The basic unit for computing storm and surface water drainage fees. All single-family Residential properties are billed the number of ERU’s specified in the table contained in Utility Rate Schedule D-1, according to parcel size. All other properties have ERU's computed to the nearest 1/10 ERU using this formula: No. Of ERU = Impervious Area (sq. ft.) / 2,500 sq. ft.

ERT (“Encode, Receive, Transmit”)
A battery-powered module attached to an Electric, natural Gas, or Water Meter that permits the remote reading by CPAU of secure, or encrypted, meter data from a centralized location for the purposes of billing, outage management, or data analysis.

Final Bill
The last bill that is issued upon permanent termination of Service. This bill will combine ending financial debits and credits, close the Account, and terminate all further Customer and Utility financial obligations, unless additional Services are requested by the Customer prior to the receipt of the final bill.

Fiber Optic (Optical Fiber), Fiber Optic Service
A solid core of optical transmission material. Fiber Optic Service that is provided by the City of Palo Alto Utilities Department is referred to as Dark Fiber.

Fiber Optic Backbone
The high-density portion of the Dark Fiber Infrastructure installed and owned by the City.

Force Majeure
The occurrence of any event that has, had, or may have an adverse effect on the design, construction, installation, management, operation, testing, use or enjoyment of the City’s Utility Services, which is beyond the reasonable control of the City or Customer and which event includes, but is not limited to, an Act of God, an irresistible superhuman cause, an act of a superior governmental authority, an act of a public enemy, a labor dispute or strike or a boycott which could not be reasonably contemplated by the City or Customer affected thereby, a defect in manufactured equipment (including, but not limited to, the Dark Fibers), fire, floods, earthquakes, or any other similar cause.

Gas, Gas Service
Gas refers to the Utility Service provided to residents and business owners in the City of Palo Alto. Gas Service consists of procurement, transmission, and distribution of any combustible gas or vapor, or combustible mixture of gaseous constituents used to produce heat by burning for retail use. It includes, but is not limited to, natural gas, gas manufactured from coal or oil, gas obtained from biomass or from Item 4
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CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
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landfill, or a mixture of any or all of the above. Gas Service is provided by the City of Palo Alto Utilities Department.

Generating Facility
All Generators, electrical wires, equipment, and other facilities owned or provided by the Producer for the purpose of producing Electric power, including energy storage facilities and solar or wind turbine- powered Renewable Electrical Generation
Generator
A device converting mechanical, chemical or solar energy into electrical energy, including any required protection and control functions, features and structural appurtenances. One or more Generators may comprise a Generating Facility
Gross Nameplate Rating; Gross Nameplate Capacity
The total gross generating capacity of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s).

Heating Degree Days (HDD)
The number of the degrees per day that the daily average temperature is below 65 degrees Fahrenheit. The daily average temperature is the mean of the maximum and minimum temperatures for a 24-hour period.

Initial Interconnection Capacity
The maximum rated generating capacity of a Renewable Electrical Generation Facility eligible for Net Energy Metering prior to the Total Rated Generating Capacity exceeding the NEM Cap.

Initial Review
The review by CPAU, following receipt of an Application for Interconnection, to determine the following:
(a) whether the Generating Facility qualifies for Simplified Interconnection; or (b) if the Generating Facility can be made to qualify for Interconnection with a Supplemental Review determining any additional requirements.

Inspector
The authorized inspector, agent, or representative of CPAU.

Interconnection; Interconnected
The physical connection of a Generating Facility in accordance with the requirements of the City’s Utilities Rules and Regulations allowing Parallel Operation with CPAU’s Distribution System to occur.

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RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 13
Interconnection Agreement
An agreement between CPAU and the Producer providing for the Interconnection of a Generating Facility that gives certain rights and obligations to effect or end Interconnection. For the purposes of the City’s Utilities Rules and Regulations, the Net Energy Metering and Interconnection Agreements , and the Power Purchase Agreements authorized by the City Council may be considered Interconnection Agreements.

Interconnection Facilities
The electrical wires, switches and related equipment that are required in addition to the facilities required to provide Electric Distribution Service to a Customer to allow Interconnection. Interconnection Facilities may be located on either side of the Point of Common Coupling as appropriate to their purpose and design.

Interconnection Facilities may be integral to a Generating Facility or provided separately.

Interconnection Facilities Study
A study conducted by CPAU for an Interconnection Customer under the Detailed Study process to determine a list of facilities (including CPAU’s Interconnection Facilities, Distribution Upgrades, and Reliability Network Upgrades as identified in the Interconnection System Impact Study), the cost of those facilities, and the time required to interconnect the Generating Facility with CPAU’s Distribution or Transmission System.

Interconnection Request
An Applicant’s request for the Interconnect of a new Generating Facility, or to increase the capacity of, or make a material modification to the operating characteristics of, an existing Generating Facility that is Interconnected with CPAU’s Distribution or Transmission System.

Interconnection Study
A study to establish the requirements for Interconnection of a Generating Facility with CPAU’s Distribution System.

Interconnection System Impact Study
An engineering study conducted by CPAU for an Interconnection Customer under the Independent Study Process that evaluates the impact of the proposed interconnection on the safety and reliability of CPAU’s Distribution and/or Transmission system and, if applicable, an Affected System.

Internet Exchange
Any Internet data center for telecommunications equipment and computer equipment for the purposes of enabling traffic exchange and providing commercial-grade data center services.

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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 14
Island; Islanding
A condition on CPAU’s Electric Distribution System in which one or more Generating Facilities deliver power to Customers using a portion of CPAU’s Distribution System that is electrically isolated from the remainder of CPAU’s Distribution System.

Junction, Junction Site
A location on the Dark Fiber Infrastructure where equipment is installed for the purpose of connecting communication cables. The Junction Site refers to the area within the Transmission Pathway at which a Junction is located.

Kilovar (kVar)
A unit of reactive power equal to 1,000 reactive volt-amperes.

Kilovar-hours (kVarh)
The amount of reactive flow in one hour, at a constant rate of Kilovar.

Kilowatt (kW)
A unit of power equal to 1,000 watts.

Kilowatt-hour (kWh)
The amount of energy delivered in one hour, when delivery is at a constant rate of one Kilowatt; a standard unit of billing for electrical energy.

Leased Service Properties
Any equipment or utility infrastructure which is not owned by CPAU, but leased from another provider in order to deliver service.

Law
Any administrative or judicial act, decision, bill, Certificate, Charter, Code, constitution, opinion, order, ordinance, policy, procedure, Rate, Regulation, resolution, Rule, Schedule, specification, statute, tariff, or other requirement of any district, local, municipal, county, joint powers, state, or federal Agency, or any other Agency having joint or several jurisdiction over the City of Palo Alto or City of Palo Alto Utilities or Public Works Customers, including, without limitation, any regulation or order of an official or quasi- official entity or body.

Licensed Fiber(s)
One or more fibers comprising a part of the Dark Fiber Infrastructure that is dedicated to the exclusive use of the Customer under the Provisions of the Dark Fiber License Agreement, a Proposal to the Dark Fiber Services Agreement, and the Utilities Rules and Regulations.

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RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 15
Licensed Fibers Route
A defined path of Licensed Fibers that is identified by specific end points.

Load(s)
The Electric power Demand (kW) of the Customer at its Service Address within a measured period of time, normally 15 minutes, or the quantity of Gas required by a Customer at its Service Address, measured in MMBtu per Day.

Low Carbon Fuel Standard (LCFS)
A program developed and administered by the California Air Resources Board to lower the carbon intensity of transportation fuel under the Global Warming Solutions Act of 2006 (AB 32). Through the LCFS program, the City, through its Electric Utility, receives credits for providing electricity to charge electric vehicles. These credits are sold and the funds are utilized to benefit current or future electric vehicle customers, educate the public on the benefits of electric vehicle transportation, and accelerate the adoption of electric vehicles.

Lower Sewer Lateral
See City Lateral.

Master-metering
Where CPAU installs one Service and Meter to supply more than one residence, apartment dwelling unit, mobile home space, store, or office.

Maximum Generation
For a Customer with a non-utility generator located on the Customer’s side of the Point of Common Coupling, the Maximum Generation for that non-utility generator during any billing period is the maximum average generation in kilowatts taken during any 15-minute interval in that billing period, provided that in case the generator output is intermittent or subject to violent fluctuations, the City may use a 5-minute interval.

Meter
The instrument owned and maintained by CPAU that is used for measuring the quantity of the Electric, Gas or Water Service delivered to the Customer.

Metering
The measurement of electrical power flow in kW and/or energy in kWh, and, if necessary, reactive power in kVar at a point, and its display to CPAU.

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RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 16
Metering Equipment
All equipment, hardware, software including Meter cabinets, conduit, etc., that are necessary for Metering.

Meter Read
The recording of Customer usage data from Metering Equipment.

Minimum Charge
The least amount to be billed to a Customer for rendering Service, in accordance with the applicable Rate Schedule.

Momentary Parallel Operation
The Interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or less.

Nationally Recognized Testing Laboratory (NRTL)
A laboratory accredited to perform the Certification Testing requirements under Utilities Rule and Regulation 27.

Natural Gas Distribution
The process of delivering natural gas to customers on a utility’s distribution system. Transmission lines carry natural gas at high pressures to receiving stations in Palo Alto, which reduce the pressure and distribute the natural gas over the City’s Gas Distribution System.

Net Electricity Consumer
A Customer-Generator or Producer whose Generating Facility produces less electricity than is supplied by CPAU during a particular period; may also be referred to as a Net Electricity Importer.

Net Electricity Exporter
A Customer-Generator whose Generating Facility produces more electricity than is supplied by CPAU during a particular period; may also be referred to as a Net Surplus Customer-Generator.

Net Energy Metering (NEM)
A means of measuring Customer-generated renewable electricity exported to the CPAU grid.

Net Energy Metering 1 (NEM 1)
CPAU’s original Net Energy Metering (NEM) Program and Net Energy Metering Aggregation (NEMA) Program, either individually or collectively, which were developed in accordance with Senate Bill 656 (1995).

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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 17
Net Energy Metering Cap (NEM Cap)
The MW value reached when the Total Rated Generating Capacity used by eligible NEM 1 Customer- Generators exceeded 5 percent of CPAU’s aggregate Customer peak Demand, at which point NEM 1 became closed to new Customer-Generators. CPAU reached its NEM Cap on December 31, 2017.

Net Energy Metering 2 (NEM 2); Net Energy Metering Successor Program CPAU’s NEM Program offering compensation for Customer-Generators whose Generating Facilities are Interconnected after the NEM Cap was reached, including Customers-Generators who are eligible for NEM 1 but elect to take Service under the Net Energy Metering Successor Program. NEM 2 Customers take Service under Utilities Rate Schedule E-EEC-1 (Export Electricity Compensation), in conjunction with their otherwise applicable Rate Schedule.

Net Energy Metering Aggregation
The process by which an eligible Customer-Generator with multiple Meters participating in CPAU’s NEM 1 Program may elect to combine the electrical Load of the Meters located on the property where the Renewable Electrical Generation Facility is located and on property adjacent or contiguous, if those properties are solely owned, leased, or rented by the eligible Customer-Generator.

Net Generation Metering
Metering of the net electrical power of energy output in kW or energy in kWh, from a given Generating Facility. This may also be the measurement of the difference between the total electrical energy produced by a Generator and the electrical energy consumed by the auxiliary equipment necessary to operate the Generator.

Net Nameplate Rating
The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s).

Net Surplus Customer-Generator
See Net Electricity Exporter.

Net Surplus Electricity Compensation
A per kilowatt-hour rate offered to NEM 1 Net Surplus Customer-Generators (excluding NEM Aggregation Customers) for net surplus electricity, as such definition may otherwise be modified or supplemented by any definition in California Public Utilities Code section 2827(b)(8), as the same may be amended from time to time.

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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 18
Non-Islanding
A method designed to detect and disconnect from an Unintended Island with matched Load and generation. Reliance solely on under/over voltage and frequency trip is not considered sufficient to qualify as Non-Islanding.

Occupied Domestic Dwelling
Any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities, which is occupied by a Person or Persons.

Parallel Operation
The simultaneous operation of a Generator with power delivered or received by CPAU while Interconnected. For the purpose of Utilities Rules and Regulations, Parallel Operation includes only those Generating Facilities that are Interconnected with CPAU’s Distribution System for more than 60 cycles (one second).

Performance Test, Performance Tested
After the completion of any Fiber Interconnection work, the City will conduct a Performance Test of each Fiber constituting a part of the proposed leased fibers to determine its compliance with the Performance Specifications.

Performance Specifications
These specifications will include, but not be limited to, criteria relating to end-to-end optical time domain reflectometer data plots that identify the light optical transmission losses in each direction along the licensed Fibers whenever the testing is possible, measured in decibels at a wavelength of 1310 or 1550 nanometers for single-mode Fiber, as a function of distance, measured in kilometers.

Person
Any individual, for profit corporation, nonprofit corporation, limited liability company, partnership, limited liability partnership, joint venture, business, family or testamentary trust, sole proprietorship, or other form of business association.

PG&E Citygate
The PG&E Citygate is the point at which PG&E’s backbone natural Gas transmission system connects to the CPAU local natural Gas Distribution System.

Point of Common Coupling (PCC)
The transfer point for electricity between the electrical conductors of CPAU and the electrical conductors of the Producer.

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RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 19
Point of Common Coupling Metering
Metering located at the Point of Common Coupling. This is the same Metering as Net Generation Metering for Generating Facilities with no host Load.

Point of Delivery (POD)
Unless otherwise specified, the following definitions apply: For Electric, that location where the Service lateral conductors connect to the Customer’s Service entrance equipment; for overhead Services, the POD is at the weather-head connection; for underground Services, the POD is located at the terminals ahead of or at the Meter; for multiple Meter arrangements with connections in a gutter, the POD is at the Meter terminals (supply-side); for multiple Meter arrangements in a switchboard, the POD is typically at the connectors in the utility entrance section; for Natural Gas, the POD is the point(s) on the Distribution System where the City delivers natural Gas that it has transported to the Customer.

Point of Interconnection
The electrical transfer point between a Generating Facility and the Distribution System. This may or may not be coincident with the Point of Common Coupling.

Point of Service (POS)
Where CPAU connects the Customer’s Electric Service lateral to its Distribution System. For Fiber Optics Service, this is where CPAU connects the Customer’s Fiber Service to the backbone. This point is usually a box located in or near the street or sidewalk and can be in the Public Right-of-Way. This point is at a mutually agreed upon location established at the time of installation.

Pole Line
Overhead wires and overhead structures, including poles, towers, support wires, conductors, guys, studs, platforms, cross arms braces, transformers, insulators, cutouts, switches, communication circuits, appliances attachments, and appurtenances, located above ground and used or useful in supplying Electric, communication, or similar or associated Service.

Power Factor
The percent of total power delivery (kVA) which does useful work. For billing purposes, average Power Factor is calculated from a trigonometric function of the ratio of reactive kilovolt-ampere-hours to the kilowatt-hours consumed during the billing month. Power Factor is a ratio that reflects the reactive power used by a Customer. CPAU maintains an overall system Power Factor above 95% to reduce distribution system losses caused by low Power Factor.

Power Factor Adjustment
An adjustment to Customer’s bill that CPAU may make when necessary due to Customer maintaining low Power Factor. . CPAU may make a Power Factor Adjustment to a Customer’s bill to account for those Item 4
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RULE AND REGULATION 2

CITY OF PALO ALTO

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Issued by the City Council
Effective 10-21-2019TBD
Sheet No 20
costs to install additional equipment to correct for Customers that maintain a low Power Factor and the additional energy costs and losses incurred by CPAU due to the Customer’s low Power Factor.

Premise(s)
All structures, apparatus, or portion thereof occupied or operated by an individual(s), a family, or a business enterprise, and situated on an integral parcel of land undivided by a public street, highway, or railway.

Primary Service
The Electric Distribution Service CPAU provides to a Customer’s Premises at a voltage level equal to or greater than 1000 volts.

Private Lateral
A Private Lateral (also known as the Upper Sewer Lateral) is the portion of the Sewer Lateral that is owned and maintained by the Customer. A Private Lateral typically is the upper portion of a Sewer Lateral upstream from the City Sewer Cleanout. A Private Lateral may include the entire Sewer Lateral if a City Sewer Cleanout is not present or if the Sewer Main is in a Public Utility Easement.

Producer
The entity that executes an Interconnection Agreement with CPAU. The Producer may or may not own or operate the Generating Facility, but is responsible for the rights and obligations related to the Interconnection Agreement.

Proposal for Dark Fiber Services
A project-specific Service agreement that acts as a supplemental document for the Dark Fiber License Agreement. This Service agreement shall include the proposed Interconnection fees, applicable Fiber licensing fees, term of the Service, and summary of licensed Fiber elements.

Protective Function(s)
The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with other Functions) whose purpose is to protect against Unsafe Operating Conditions.

Provision
Any agreement, circumstance, clause, condition, covenant, fact, objective, qualification, restriction, recital, reservation, representation, term, warranty, or other stipulation in a contract or in Law that defines or otherwise controls, establishes, or limits the performance required or permitted by any party.

Prudent Utility Practices
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RULE AND REGULATION 2

CITY OF PALO ALTO

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Issued by the City Council
Effective 10-21-2019TBD
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The methods, protocols, and procedures that are currently used or employed by utilities to design, engineer, select, construct, operate and maintain facilities in a dependable, reliable, safe, efficient and economic manner.

Public Right-of-Way
The areas owned, occupied or used by the City for the purposes of furnishing retail and/or wholesale Electricity, Gas, Water, Wastewater, Storm and Surface Water Drainage, Refuse Service or communications commodity and/or distribution Service, and the means of public transportation, to the general public, including but not limited to, the public alleys, avenues, boulevards, courts, curbs, gutters, lanes, places, roads, sidewalks, sidewalk planter areas, streets, and ways.

Public Utility Easements; Easement
The areas occupied or used by the City for the purpose of providing Utility Service and all related Services offered by the City to the general public, the rights of which were acquired by easements appurtenant or in gross, or other interests or estates in real property, or the highest use permitted to be granted by the nature of the City’s interest in and to the affected real property. This term incorporates all public Service Easements for Utility Services that have been recorded by the City with the Recorder of the County of Santa Clara, California.

Public Works Department
See City of Palo Alto Public Works Department.

Rate Schedule
One or more Council-adopted documents setting forth the Charges and conditions for a particular class or type of Utility Service. A Rate Schedule includes wording such as Schedule number, title, class of Service, applicability, territory, rates, conditions, and references to Rules.

Recyclable Materials
Materials designated by the City as suitable for collection and transport to a material recovery facility for processing into a recycled content product, including, but not limited to newspaper, paper, cans, corrugated cardboard, glass and certain types of plastic, and metals.

Refuse Service
Refuse Service includes weekly collection, processing and disposal of Solid Waste, weekly collection and processing of Recyclable Materials, weekly collection and processing of Compostable Materials and construction and demolition waste, street sweeping service, the household hazardous waste program, and the annual Clean Up Day.

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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 22
Reliability Network Upgrades
The transmission facilities at or beyond the point where CPAU’s Distribution System interconnects to the CAISO controlled grid that are necessary for the Interconnection of one or more Generating Facility(ies) safely and reliably to the CAISO-controlled grid, .

Renewable Electrical Generation Facility
A Generation Facility eligible for NEM 1 under California Public Utilities Code section 2827 et seq. as the same may be amended from time to time.

Reserved Capacity
For a Customer with one or more non-utility generators located on the Customer’s side of the Point of Common Coupling, the Reserved Capacity for each billing period is the lesser of 1) the sum of the Maximum Generation for that period for all non-utility generation sources; or 2) the maximum average Customer Demand in kilowatts taken during any 15-minute interval in the billing period, provided that in case the Load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval.

Residential Service
Utility Service provided to separately metered single family or multi-family domestic dwelling.

Restoration of Service
The reactivation of a Utilities Account after: a) payment is received after Disconnection for non-payment, or b) the operating condition of a Customer’s facility is brought into compliance with CPAU requirements.

See Utilities Rule and Regulation 9, “Disconnection, Termination, and Restoration of Service.” Rules and Regulations
See Utilities Rules and Regulations
Scheduling Coordinator
An entity providing the coordination of power schedules and nominations to effect transportation and distribution of Gas, Electric power and energy.

Secondary Service
CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level less than 1000 volts.

Service(s)
Utility Services offered by the City of Palo Alto include Electric, Fiber Optics, Gas, Water, Wastewater Collection services provided by the Utilities Department (CPAU); and Refuse Service, Wastewater Treatment, and Storm and Surface Water Drainage Services provided by the Public Works Department.

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RULE AND REGULATION 2

CITY OF PALO ALTO

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Issued by the City Council
Effective 10-21-2019TBD
Sheet No 23
Service Address
The official physical address of the building or facility assigned by CPAU’s Planning Department, at which Customer receives Utility Services.

Service Charge
A fixed monthly Charge applicable on certain Rate Schedules that does not vary with consumption. The Charge is intended to recover a portion of certain fixed costs.

Service Drop
The overhead Electric Service conductors from the last pole or other aerial support to and including the splices, if any, connecting to the service entrance conductors at the building or other structure. Or, in the case of Fiber Optic Drops, the overhead Fiber Optics cable from the last pole or other aerial support to the building or other structure to and including the termination box.

Services or Service Lines
The Facilities of CPAU, excluding transformers and Meters, between CPAU’s infrastructure and the Point of Delivery to the Customer.

Service Territory
The geographic area within the boundaries establishing the city limits of Palo Alto and served by CPAU’s physical Distribution System.

Sewer Lateral
The Sewer Lateral is a pipe that takes an individual building’s Wastewater to the Wastewater Main in the Public Right-of-Way or in a Public Utility Easement.

Short Circuit (Current) Contribution Ratio (SCCR)
The ratio of the Generating Facility’s short circuit contribution to the short circuit contribution provided through CPAU’s Distribution System for a three-phase fault at the high voltage side of the distribution transformer connecting the Generating Facility to CPAU’s Distribution System.

Simplified Interconnection
An Interconnection conforming to the minimum requirements as determined under Utilities Rule and Regulation 27.

Single Line Diagram; Single Line Drawing
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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 24
A schematic drawing, showing the major Electric switchgear, Protective Function devices, wires, Generators, transformers and other devices, providing sufficient detail to communicate to a qualified engineer the essential design and safety of the system being considered.

Smart Inverter
A Generating Facility’s inverter that performs functions that, when activated, can autonomously contribute to grid support during excursions from normal operating voltage and frequency system conditions by providing: dynamic reactive/real power support, voltage and frequency ride-through, ramp rate controls, communication systems with ability to accept external commands and other functions.

Solid Waste
Solid Waste means solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emanating from residential premises or commercial premises, including garbage, trash, rubbish, ashes, industrial wastes, manure, animal carcasses, solid or semisolid wastes, and other solid and semisolid wastes. Solid Waste shall not include liquid wastes or sewage, abandoned vehicles, hazardous waste, recyclable materials or compostable materials.

Special Facilities
Special Facilities are facilities requested by an Applicant in addition to or in substitution for standard facilities which CPAU would normally provide.

Splice
A point where two separate sections of Fiber are physically connected.

Standby Service
The back-up Energy Services provided by CPAU.

State Energy Surcharge
The California State Board of Equalization administers the Energy Resources Surcharge Law, as authorized under the Revenue and Taxation Code (section 40016). The surcharge is imposed upon the consumption in California of electrical energy purchased from an electric utility on and after January 1, 1975. Every electric utility in California making energy sales to consumers must collect and remit to the state the amount of surcharge applicable to its consumers. Information on the surcharge and current surcharge rate can be found at the California Board of Equalization’s web site.

Storm and Surface Water Drainage
A Utility Service provided to residents and business owners in the City of Palo Alto. Storm and Surface Water Drainage Service is provided by the City of Palo Alto Public Works Department.

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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 25
Submetering
Utility submetering is the implementation of a system that allows a landlord, property management firm, condominium association, homeowners association, or other multi-tenant property to bill Master-Metered tenants for Utility usage. See Utilities Rule and Regulation 11, “Billing, Adjustment, and Payment of Bills.”
Supplemental Review
A process wherein CPAU further reviews an Application that fails one or more of the Initial Review Process screens. The Supplemental Review may result in one of the following: (a) approval of Interconnection; (b) approval of Interconnection with additional requirements; or (c) cost and schedule for an Interconnection Study.

System Integrity
The condition under which a Distribution System is deemed safe and can reliably perform its intended functions in accordance with the safety and reliability rules of CPAU.

Tax
Any assessment, Charge, imposition, license, or levy (including any Utility Users Tax) and imposed on Charges by any Agency, including the City.

Telemetering
The electrical or electronic transmittal of Metering data in real-time to CPAU.

Temporary Service
When Service is requested for limited period of time or of indeterminate duration, such as, but not limited to, Service to provide power for construction, seasonal sales lots (Christmas trees), carnivals, rock crushers or paving plants. Temporary Service does not include Emergency, breakdown, or Standby Service.

Termination of Service
When one or more Utilities services are interrupted until a Customer’s operating condition is brought into compliance with CPAU regulations and requirements. This is assumed to be a temporary situation unless service is permanently terminated and the Account is closed. See Utilities Rule and Regulation 9, “Disconnection, Termination, and Restoration of Service.” Therm
A Therm is a unit of heat energy equal to 100,000 British Thermal Units (Btu). It is approximately the energy equivalent of burning 100 cubic feet (often referred to as 1 ccf) of natural Gas. Since Meters measure volume and not energy content, a Therm factor is used to convert the volume of Gas used to its heat equivalent, and thus calculate the actual energy use. The Therm factor is usually in the units Item 4
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CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 26
therms/ccf. It will vary with the mix of hydrocarbons in the natural Gas. Natural Gas with a higher than average concentration of ethane, propane or butane will have a higher Therm factor. Impurities, such as carbon dioxide or nitrogen lower the Therm factor.

Total Rated Generating Capacity
Total Rated Generating Capacity will be calculated as the sum of the rated generating capacity of all installed Renewable Electrical Generation Facilities participating in NEM 1 or NEM 2. The rated generating capacity for each individual Renewable Electrical Generation Facility participating in NEM 1 or NEM 2 will be calculated as follows:

1. For Solar: For each Renewable Electrical Generation Facility that is a solar photovoltaic generating facility, CPAU will use the CEC’s Alternating Current (AC) rating; or where the CEC AC rating is not available, CPAU will multiply the inverter AC nameplate rating by 0.86; and

2. For Non-Solar: For all other Renewable Electrical Generation Facilities, CPAU will use the AC nameplate rating of the generating facility.

Transfer Trip
A Protective Function that trips a Generating Facility remotely by means of an automated communications link controlled by CPAU.

Transmission Pathway
Those areas of the Public Right-of-Way, the Public Utility Easements and the Leased Service Properties in which the Dark Fiber Infrastructure is located.

Transmission System
Transmission facilities owned by CPAU that have been placed under the CAISO’s operation control and are part of the CAISO-controlled grid.

Trap
Any approved equipment or appliance for sealing an outlet from a house-connection sewer to prevent the escape of sewer Gas from a main line through a building connection (service) sewer.

Underground Utility District
An area in the City within which poles, overhead electric or telecommunication wires, and associated overhead structures are prohibited or as otherwise defined in Section 12.04.050 of the PAMC.

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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 27
Unintended Island
The creation of an Island, usually following a loss of a portion of CPAU’s Distribution System, without the approval of CPAU.

Unsafe Operating Conditions
Conditions that, if left uncorrected, could result in harm to personnel, damage to equipment, loss of System Integrity, or operation outside pre-established parameters required by the Interconnection Agreement.

Upper Sewer Lateral
See Private Lateral.

Utilities Department
See City of Palo Alto Utilities Department.

Utilities Director
The individual designated as the Director of Utilities Department under Section 2.08.200 of the Palo Alto Municipal Code, and any Person who is designated the representative of the director of utilities.

Utility(ies) Rules and Regulations, Rules and Regulations The compendium of Utilities Rules and Regulations prepared by the City’s Utilities and Public Works Departments and adopted by ordinance or resolution of the Council pursuant to Chapter 12.20 of the Palo Alto Municipal Code, as amended from time to time.

Utility(ies) Service(s), Service(s)
Electric, Fiber optics, Water, Gas, Wastewater collection services provided by the City of Palo Alto Utilities Department (CPAU), and Refuse Service, Wastewater Treatment and Storm and Surface Water Drainage services provided by the CityPublic Works Department.

Utility Service Application (Application)
A general CPAU Application form documenting an Applicant’s request for Electric, Water, Gas and Wastewater Service. The Application documents the Applicant’s contact information, billing information and basic electric, water, gas and wastewater loading data necessary to approve, design and install sufficient facilities based on Load and usage information provided by the Applicant.

Utility Users Tax (UUT)
A City of Palo Alto Tax imposed on Utility Charges to a Water, Gas, and/or Electric Service Customer.

This Such Charges subject to Tax may include Charges made for Electricity, Gas, and Water and Charges for Service including Customer Charges, Service Charges, Standby Charges, Charges for Temporary Item 4
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DEFINITIONS AND ABBREVIATIONS
RULE AND REGULATION 2

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No 28
Services, Demand Charges, and annual and monthly Charges, as described in Chapter 2.35 of the Palo Alto Municipal Code.

Wastewater
Utility Service provided to residents and business owners in the City of Palo Alto. Wastewater Utility Services include collection and treatment of wastewater. Wastewater Collection Service is provided by the City of Palo Alto Utilities Department, and Wastewater Treatment Service is provided by the City of Palo Alto Public Works Department.

Wastewater Main
The collector pipes for numerous Sewer Laterals from an area or neighborhood. Wastewater Mains convey the wastewater to larger trunk sewer lines or to a water quality treatment plant.

Water
A Utility Service provided to residents and business owners in the City of Palo Alto for retail use. Water Service is provided by the City of Palo Alto Utilities Department.

Water Distribution
The process of delivering potable water to customers on a utility’s distribution system. Transmission lines carry potable water from the San Francisco Public Utility Commission’s Hetch Hetchy System to receiving stations in Palo Alto, which then distribute the water over distribution lines that extend throughout the Service Territory. In cases of reduced water supply from Hetch Hetchy, local wells in Palo Alto can also withdraw potable water from local aquifers and inject it into the Water Distribution System.

Water Column (WC)
A pressure unit based on the difference in inches between the heights of water columns as measured in a manometer. 6” WC = 0.217 psi; 7” WC = 0.25 psi.
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ACCESS TO PREMISES

RULE AND REGULATION 8

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No. 1

A. RIGHT OF ACCESS

1. Customers must provide CPAU with immedi ate and unhindered access to and from Customer Premises for any purpose conn ected with providing Utility Service, including, but not limited to, inspection, Meter reading, testing, maintenance, removal, and replacement of faci lities and equipment. This access includes keeping Customer ensuring all facilities located on Customer Premises that are associated with CPAU’s provision of Utility Service are clear of vegetation, debris, shields, construction or any other obstruction. Such access is a condition of taking Service from CPAU, and applies to all facilities and equipment associated with CPAU’s provision of Utility Service that are located on Customer Premises, including facilities within locked or enclosed areas.

If the Customer is not the owner of the Premises, the Customer must obtain all required permissions for CPAU access from the Premises owner.

2.1. 1. The Customer is responsible for keeping the Meter, vault or box, and any gas valve or anode test boxes, if those are located on Cu stomer Premises, clear of vegetation, debris, shields, construction or any other obstruction, so that the facilities are accessible for reading and maintenance

3.2.When access to Customer’s Premises is not immediate and unhindered, CPAU may take any enforcement actions permitted by Law, including, but not limited to, requiring Customer to provide a new and approved loca tion for facilities or equipment at the Customer’s expense, or discontinuing or terminating Service.

B. SPECIAL ACCESS REQUIREMENTS FOR METERS

1. The requirements of this Section B apply in addition to those outlined in Rule and Regulation 15 (Metering Equipment).

1.2.Meters must be installed on the exterior of the building at ground level, unless otherwise authorized in writing by the Utilities Director or his/her designee.

2.3.If CPAU is unable to read the Customer’s Water, Electric, and/or Gas Meter due to physical or security conditions imposed by the Customer or created on the Premises, CPAU may, at its option, estimate the Customer’s Meter Read for up to three months.

3.4.If Meter access has not been possible for the three consecutive months CPAU will notify the Customer by registered ma il. If the Customer does not acknowledge receipt of the registered mail within two weeks of receipt of such notice, indicating how and when Meter Item 4
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ACCESS TO PREMISES

RULE AND REGULATION 8

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No. 2

access will be provided, CPAU will initiate discontinuance or termination of Service. Such acknowledgment by the Customer must be made in writing or by calling the CPAU telephone number provided to the Customer in the registered notice.

4.5.If CPAU, its agents, and employees are denied access to its Meter(s) for greater than three consecutive months within a twelve-month pe riod, CPAU may require the Customer to move the Meter(s) to a location on the Premises that shall be accessible to CPAU personnel for purposes of furnishing or maintaining Utility Service. The cost to relocate the Meter(s) shall be borne by the Customer.

5.6.Failure to relocate such Meters within 90 days of receipt of notice from CPAU of the requirement to relocate the Meter(s) will result in termination of Service. Service terminated under this provision will not be re stored until the Mete r relocation has been completed and has successfully passed such inspections as may be required by both CPAU and City’s Planning and Community Environment Department.

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DISCONNECTION, TERMINATION AND RESTORATION OF SERVICE
RULE AND REGULATION 9

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019 TBD
Sheet No 1

A. CUSTOMER-INITIATED TERMINATION OF UTILITY SERVICE

1. A Customer requesting termination of Utility Service(s) must notify the CPAU Customer Service Office at least three business days before the Service termination effective date.

Upon receipt of such notice, CPAU has no obligation to render Service after the effective date of such change, and CPAU will discontinue the Customer’s responsibility for bills for Service supplied to the Premises after that date.

2. A Customer vacating a Premise to move to another Premise served by CPAU, but wishing Service to continue beyond the date vacated, must provide an effective date of termination to the CPAU Office or Call Center at the time of the request for establishment of Service for the new Premise. The Customer is financially responsible for all Service supplied prior to the Service end date, and Customer must provide a forwarding address for final billing purposes.

B. CPAU-INITIATED TERMINATION OR DISCONNECTION OF SERVICE

CPAU may terminate or disconnect Utility Service when an existing Customer, through action or inaction, has not complied with Utility Service requirements as stated in these Rules and Regulations, or other applicable laws. CPAU will terminate or disconnect Utility Service as a last resort. Actions that warrant termination or disconnection of Service include, but are not limited to, the following:

1. Use of Utility Services without having first complied with the requirements for Service.

Customers will be responsible for all associated Charges from the date of initial Service as determined by CPAU, up to the maximum period allowed by law.

2. Vacating Premises without notification to CPAU.

3. Tampering, damaging, interfering with or destroying CPAU equipment, facilities or property. Customers will be liable for all damage to CPAU arising from negligence, lack of proper care, or wrongful act of the Customer or Customer’s tenants, agents, employees or contractors.

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Effective 10-21-2019 TBD
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4. Nonpayment of bills or any proper Charges from special fees, licensing agreements, loans or returned check(s) due to insufficient funds in Customer’s bank account; failure to establish credit, failure to provide adequate credit information, or failure to provide required deposits.

C. PROCEDURES FOR CPAU-INITIATED DISCONNECTION OF SERVICE

1. Prior to physical or remote disconnection for non-payment, CPAU will provide two written notices to the Customer, and/or the third party the Customer has designated to receive such notices, as applicable:

a. 10-Day Late Notice: The first “Late Notice” is issued 5 days after the bill due date and informs Customer that a late fee has been charged, and Customer must pay the overdue amount by the date specified to avoid disconnection of Service.

b. 48-Hour Disconnect Notice: If payment is not received by the date specified in the 10-day notice, a Disconnect Notice will be delivered to the Customer’s Premises , notifying the Customer that payment must be received within 48 hours or Utilities Services will be disconnected for non-payment. If payment is not received within the 48-hour period, Utilities Services may be disconnected without further notice.

The 48-hour Disconnect Notice will include:
(1) The name and address of the Customer whose Account is delinquent. (2) The amount of the delinquency and late fee.
(3) The date by which payment or arrangements for payment is required to avoid disconnection of Service.
(4) The procedure by which the C ustomer may initiate a complaint or request an investigation concerning Service or Charges; except that, if the bill for Service contains a description of that procedure, the notice is not required to contain that information.

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Effective 10-21-2019 TBD
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(5) The procedure by which the C ustomer may request amortization of the unpaid Charges.
(6) The procedure for the C ustomer to obtain information on the availability of financial assistance, including private, local, state, or federal sources, if applicable.
(7) The telephone number of a representative of CPAU who can provide additional information or institute arrangements for payment.

2. Customers may contact CPAU Customer Service Center to discuss options for averting disconnection of Service for non-payment:

IN PERSON
City of Palo Alto Utilities
Customer Service Center, Ground Floor
250 Hamilton Avenue
Palo Alto, CA 94301
PHONE: 650-329-2161

BY MAIL
City of Palo Alto Utilities
Customer Service Center
PO Box 10250
Palo Alto, CA 94303

BY E-MAIL
[email protected]

3. Deferred or Reduced Payments Policy: Customers may contact CPAU Customer Service Center to request deferred or reduced payments based on Customer’s demonstrated financial need. CPAU will notify the Customer in writing of the terms of deferred or reduced payment.

4. Alternative Payment Schedule Policy: Customers may contact CPAU Customer Service Center to request an alternative payment schedule based on Customer’s demonstrated Item 4
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Effective 10-21-2019 TBD
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financial need. An example of a possible alternative payment schedule is the Budget Billing Payment Plan (BBPP) found in Rule and Regulation 11, “Billing, Adjustment and Payment of Bills.” CPAU will notify the Customer in writing of the terms of the alternative payment schedule.

5. To avoid disconnection of Utility Service, a Customer’s outstanding Account balance may be transferred to another Account in the same class of Service in that Customer’s name at another location served by CPAU.

6. To avoid disconnection of Utility Service, C PAU may extend payment arrangements for the unpaid Account balance to accommodate a Customer’s financial situation. I f the Customer fails to meet the terms of the payment arrangement, the outstanding balance will become immediately due and payable, and the Account Service(s) will be subject to disconnection after expiration of a 48-hour Disconnect Notice.

7. Customers whose Utility Service has been disconnected for non-payment will have their Accounts referred to a collection agency when past-due balances exceed 180 calendar days.

8. Residential metered Utility Services will not be disconnected for non-payment of a bill on any Friday, Saturday, Sunday, legal holiday or at any time during which the Utilities Customer Service Office or Call Center is closed. Online payments may take up to 24 hours to be received by CPAU.

9. Utility Service will not be disconnected for non -payment of a n incorrect bill until the corrected bill becomes past due.

10. CPAU’s Disputed Bills Policy can be found in Rule and Regulation 11, “Billing, Adjustment, and Payment of Bills.”

11. Utility Service will not be disconnected for non -payment of a disputed bill during investigation or review by CPAU. The non-disputed portion of the Utility bill will remain due and payable. CPAU findings and resolution of a disputed bill will be communicated to the Customer within thirty calendar days of the Customer’s notification to CPAU of the bill dispute.

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UTILITIES RULES AND REGULATIONS
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Effective 10-21-2019 TBD
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12. Customers in need of assistance with bill payment for their Utility Service , due to a reduction in household income resulting from a member of the household being called to active duty status in the military , may apply for shut -off and payment protections for a period of 180 days, pursuant to the California Military and Veterans Code, Section 827, as amended. CPAU, at its option, may extend these protections for an additional 180 days.

D. PRIOR NOTICE EXCUSED IN CERTAIN SITUATIONS
CPAU may immediately terminate Utility Services, without notice, for an unauthorized action of a Customer, including, but not limited to:

1. Theft of Utility Service.

2. Willful waste of Water.

3. Unsafe wiring or equipment on Customer Premises or wiring or equipment that fails to meet CPAU standards or applicable law. CPAU reserves the right to inspect if CPAU staff reasonably believes that unsafe conditions exist. If the Customer discovers any defect in their Utility Service, the Customer must notify CPAU immediately.

4. Use of Customer equipment that imposes an electrical Load adversely affecting CPAU’s Distribution System operation, Service capacity, or Service to its other Customers. Any Customer that operates Electric equipment including, but not limited to, pumps, wel ders, furnaces, compressors or other equipment where the use of Electricity is intermittent, and causes significant voltage fluctuations or electromagnetic interference to other Customers, must reasonably limit such impacts or interference upon request by CPAU. The Customer may be required to permanently mitigate any ongoing disruption to the Electric Distribution System to an acceptable level established by CPAU, or avoid the use of such equipment. Failure to comply with such mitigation and/or limitation requests may result in immediate termination of Utility Service.

5. Placement, construction, or maintenance of any structure, vegetation, debris, or other object upon the Customer’s Premises that, in CPAU’s judgment, endangers the safe and Item 4
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UTILITIES RULES AND REGULATIONS
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Effective 10-21-2019 TBD
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reliable operation or maintenance of CPAU overhead or underground Electrical, Fiber Optic, Water, Gas and Wastewater facilities.

E. REMOTE DISCONNECT/RECONNECT
CPAU will use the remote disconnect reconnect enabled electric meter function for Customer Electric Meters on Customer E lectric Services. The use of remote disconnect reconnect E lectric Meters allows for the disconnection and/or reconnection of an E lectrical Service to a Service address without CPAU staff being physically present where the electric Meter is located. Customer is fully responsible for any impacts resulting from the disconnection at the Service address. CPAU reserves the right to remotely reconnect the Electric Meter and it is the Customer’s full responsibility to ensure that all equipment and appliances at the service address pose no potential hazard if and when the Electric Meter is reconnected and the Electric Service is restored.

Remote disconnect reconnect enabled Electric Meters may be installed at any location identified by CPAU using the following guidelines:
• A service address that has a high rate of move-in and move-out events where multiple Accounts are opened and closed within a 36-month span.
• Any service address that has been physically disconnected for non-payment more than one time in the previous 12 months.
• A Meter site location is deemed inaccessible or hazardous for CPAU personnel to access.

E.F. RESTORATION OF SERVICE

1. CPAU will physically restore or remotely reconnect Service to a disconnected Account when the financial cause for disconnection has been rectified and Customer has paid all proper Charges due, including any additional deposits or reconnection Charges.

2. CPAU will physically restore or remotely reconnect Service to a terminated Account when it determines that the physical cause for termination has been rectified, safe operating conditions have been restored, and the engineering and operations requirements for Service have been met, including compliance with CPAU Rules and Regulations.

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METER READING

RULE AND REGULATION 10

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD6-27-2016
Sheet No. 1

A. BILLING PERIOD

1. CPAU will attempt to read Water, Gas, and Electric Meters at consistent intervals ranging from 27-33 days for each Billing Period.

2. Under normal conditions, bills will be based upon actual Meter readings. Under abnormal conditions, such as, but not limited to Meter malfunction, lack of access to the Meter, or CPAU staffing limitations, the bill for a Billing Period may be based upon estimated Meter readings taken from the historical record of consumption at the Premises. To correct any inaccuracies arising from the use of an estimated Meter reading, CPAU will make reasonable efforts, but does not guarantee, that it will obtain a Meter reading for the following Billing Period based on an actual Meter reading.

3. CPAU may estimate bills for unmetered Utility Service, for Utility Service from Meters which have been tampered with, or where access has been denied or impeded by the Customer, by the best available means , which may include, but are not limited to:
estimation by comparison to prior Billing Period for the same Premise and equivalent Billing Period for the prior year. Such bills shall be due and payable by the Customer.

4. When the estimated Meter reading is higher than the actual Meter reading, adjustments for consumption and cost will be made to the Customer’s next regularly scheduled bill.

B. MULTIPLE METERS FOR SAME SERVICE

For the purpose of calculating Charges, each Meter on the Customer’s Premises will be considered separately, and the readings of two or more Meters will not be combined, except as follows:

1. Where combinations of Meter Readings are specifically provided for in Rate Schedules or via contract with the Customer;

2. Where CPAU’s operating convenience or necessity requires the installation of two or more Meters on the Customer’s Premises.

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METER READING

RULE AND REGULATION 10

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD6-27-2016
Sheet No. 2

C. “CUSTOMER READS OWN METER” PROGRAM

The “Customer Reads Own Meter” program allows Customers to be responsible for the reading of CPAU Meters located on their property. The Customer sends the Meter readings to CPAU for entry into CPAU’s computer billing system. It is the Customer’s responsibility to furnish the readings to CPAU in accordance with the Meter reading schedule that CPAU will provide upon the Customer’s entry into the program. Customer participation in this program is at the sole discretion of CPAU.

1. If a Customer reading is not received by CPAU in time for billing, an estimated read(s) will be made by CPAU. Failure by the Customer to consistently provide Meter readings shall result in termination of participation in the “Customer Reads Own Meter” program.

2. In the event the Customer fails to provide readings for two consecutive months, CPAU may require the Customer to provide access to the Meters, or relocate them, at the Customer’s expense, to an accessible location on the property, in accordance with such CPAU Rules and Regulations, procedures, and standard s that apply to relocation of Service.

3. On an annual basis, CPAU will read the Meters for verification. For such purposes, Meter access by CPAU personnel at reasonable hours must be provided by the Customer.

D. OPT-OUT OF ELECTRIC AND GAS ADVANCED METERING

Customers may choose to opt out and temporarily keep their existing (legacy) Meter by notifying CPAU before a new A dvanced Metering Infrastructure (AMI) -enabled Meter i s installed . If Customer contacts the CPAU after the AMI Meter is installed, the AMI Meter’s radio transmission communications will be turned off and disabled remotely, and Meters will be read manually.

Unless Customer specifically opts out in the advertised opt-out period:
• All Customers will be upgraded to advanced metering
• New accounts will automatically participate in advanced metering.

1. Eligible Customers
• Customers selecting to opt out of AMI (either with legacy Meter or inactive advanced Meter) must participate in the “Customer Reads Own Meter” program. • Customer must sign a form acknowledging fees, terms, and conditions of the “Customer Reads Own Meter” program.

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Meter Reading

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METER READING

RULE AND REGULATION 10

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD6-27-2016
Sheet No. 3

• As part of the “Customer Reads Own Meter” program, Customer must provide access for CPAU to read the Meters for verification on an annual basis. For such purposes, Customer must provide Meter access to CPAU personnel during regular business hours. • Customer must opt out at the Account level, and the opt out must be completed by the Account holder.

2. Ineligible Customers
Customer will be ineligible to opt out or Customer’s prior opt-out selection will be revoked if a Customer has a record of any of the following:
• Equipment tampering or electric/water/gas diversion
• Account is not current, not in good standing, or not in compliance with Utility Rules and Regulations
• Obstructed Meter access for Meter reading and/or Meter maintenance • A Meter site location that CPAU deemed inaccessible or hazardous for City of Palo Alto personnel to access.

3. Opt-out Fees
a. Set Up Charge. The set up Charge is per residence, not per Meter. If Customer has both an electric and gas Meter at their property, only one setup charge will be added to the Account billing statement. However, if Customer would like to opt- out for other residences on their Account, there is a setup Charge for each additional location. • Legacy electric/gas meters: A one-time non-refundable set up Charge in the amount shown in Rate Schedule C-1 will be billed on the residential Customer Account. For Customers in the low-income program RAP, a reduced the one-time non-refundable set up Charge as set forth in Rate Schedule C-4 will be billed on the residential Customer Account.
b. Monthly Fees. In addition to the applicable monthly Customer Charge for Service, a non- refundable monthly fee as shown in Rate Schedule C-1 will be billed to the residential Account. For Customers in the low-income program RAP, a non-refundable monthly fee in the amount shown in Rate Schedule C-4 will be billed to the residential Account. The fee will cover the expense of processing Customer self- reads. c. There is no fee to opt in to AMI.

4. Opt-out Process:
a. Enrollment in Opt-out program:

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Meter Reading

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METER READING

RULE AND REGULATION 10

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD6-27-2016
Sheet No. 4

For Customer’s convenience, there are multiple ways to opt out of the advanced Meter program.
• Use the online form on the CPAU Advanced Metering Infrastructure webpage.
• Submit an opt-out request by visiting the City of Palo Alto Utilities Office, 250 Hamilton Ave. Ground Floor, Palo Alto CA 94301.
• By phone, by calling at (650) 329-2161.
b. Meter Maintenance and Reading for Opt-out Customers
• Customers who opt out of advanced metering infrastructure (AMI) can keep their existing legacy meter until the opt out period expires. • If an advanced Meter has been installed or a legacy Meter is not available, CPAU will disable the advanced Meter’s radio transmission communications. • Customer will be required to participate in the CPAU “Customer Reads Own Meter” program. This program allows a Customer to read (or photograph) their own Meter and submit that information to CPAU on a monthly basis.

Submit Reads:

Email: [email protected]
Mail preprinted Meter Read Cards:

City of Palo Alto Utilities, Ground Floor
Palo Alto, CA 94301
Online, through the Meter Reading Form

D.E. METER READING ERRORS

Under certain circumstances, CPAU will adjust a Customer’s bill for reasons of accuracy. (See CPAU Rule 11 regarding billing adjustments related to error or malfunction.)

1. Meter reading errors may be brought to the attention of CPAU by the Customer or identified by a computer generated report as part of the billing review process.

2. When a Meter reading error has been identified, the Customer will be notified of the correction within 30 calendar days.
(END)

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Meter Reading

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METERINGMETERING EQUIPMENT

RULE AND REGULATION 15

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No. 1
A. OWNERSHIP OF AND RESPONSIBI LITY FOR METERING EQUIPMENT

CPAU will furnish, own and maintain all Gas Regulators and all Meters for measuring Electric, Water, and Gas usage by the Customer. In add ition, CPAU will furnish, own and maintain all Meter-related equipment including: instrument tr ansformers, phase shifti ng transformers, test switches, and connecting circuitry necessary for measuring Electricity used by the Customer.

B. METER INSTALLATIONS

1. LOCATION

a. All Meters will be installed by CPAU upon the Customer’s Premises, and located to be at all times accessible by CPAU or its authorized representatives for maintenance, inspection, reading, and testing. Meter location must be approved by CPAU; placement of Meters above the ground-floor level is not permitted.

b. When required in order to comply with current CPAU Rules and Regulations and Utility Standards, the Customer must, at the Customer’s own expense, relocate the Meter or Meters to a CPAU-approved location.

2. MULTIPLE-OCCUPANCY BUILDINGS

In buildings in which separate Meters are required for each unit to measure separately the Electric Service, Gas or Water supplied to in dividual Customers, Meters for each Service will be located at one central point, per the CPAU standards or as otherwise specified by CPAU. The building owner must clearly mark each Meter position to indicate the particular location supplied by the Meter. Each Water and Gas houseline must be tagged with a brass identification plate showing the final and legal address served by each Meter.

If more than one Gas or Water Meter is required to serve a multip le-occupancy building, such as a condominium or tow nhome, a Public Utili ty Easement will be required for the Water and Gas Service Lines and Meters.

3. SEALING OF METERS

All CPAU Meters will be sealed by CPAU an d no such seal may be tampered with or broken except by an authorized representative of CPAU.

If a Meter is tampered with, bypassed or otherwise compromised by the Customer, CPAU Item 4
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Metering

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METERINGMETERING EQUIPMENT

RULE AND REGULATION 15

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No. 2
may discontinue and remove the Service in addition to charging for the estimated amount of Utilities used, and pursue all available civil and criminal remedies. If Service is removed, Customer will be responsible for the expense of removal and installation of new Service before the new Service is re-installed and activated.

4. ELECTRIC DEMAND METERS

Generally, Demand Meters will not be inst alled on Loads with an estimated maximum Demand less than six (6) or ei ght (8) kW or eight (8) horsepower (hp). Demands of such lesser loads will be determined by a Load check.

5. ADDITIONAL METERING EQUIPMENT

CPAU may, at its discretion and at its cost, install additional Metering Equipment for the purpose of system meeting quality control purposesstandards, updating outdated equipment, or otherwise improving the the functionality of its Utility Services.

6. CAPACITY OF METERS

a. CPAU will set Water and Gas Meters to match the Customer’s Demand as stated on the Customers Utility Application/load sheet. CPAU may install Meters with a capacity greater than needed to supply the stated demand if th e Customer pays all applicable fees associated with the larger Meter. It is the Customer’s responsibility to submit an accurate Utility application/load sheet for Meter and Service capacity sizing.

b. CPAU may, at its option, meter delivery to Primary Service Cust omers at Secondary Service voltage, and apply an adjustment factor to compensate.

C. METER TESTS

1. Any Customer may secure a te st of the accuracy of the Meter serving the Customer’s Premises. Prior to the test, the Customer will be required to make a deposit with CPAU as specified in CPAU Rate Schedule C-1. The de posit will be returned to the Customer if, under conditions of normal operation, the Electric, Gas, or Water Meter is found by test to register more than two percent (2%) faster. Otherwise, the deposit will be retained by CPAU to offset a portion of the cost of making such test. Deposits made for Meter accuracy testing will be returned or waived if CPAU de termines that the Meter’s current condition requires testing or replacement in advance of the Meter’s scheduled replacement date.

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Metering

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METERINGMETERING EQUIPMENT

RULE AND REGULATION 15

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No. 3

2. The Customer has the right to require that the test be made in their presence, or a representative’s presence at the Meter shop. A written report giving the result of the test will be supplied to the Customer upon request within ten (10) days of the test.

3. Meters will be tested before their installati on, except that in the case of newly purchased single phase Electric Meters, the manufacturer’s test may be used as the installation test when CPAU’s random test indicates satisf actory test conditions for a particular manufacturer and a particular shipment. No Electric, Gas or Water Meter will be placed in Service or allowed to remain in Service if it is found to have an error in registration in excess of two percent (2%) under condition of normal operation.

D. MASTER METERING

Separate Premises, even though owned by the same Customer, will not be supplied Water, Gas, and/or Electric through the same Meter (i.e. master Meter), except as provided herein.

1. RESIDENTIAL

Customers for whom Water, Gas, and Electri c Master-metering was installed prior to December 31, 1982, may continue to obtain Serv ice at a single Point of Delivery through a single Metering installation for two or more single-family dwelling units in the same building or for two or more multi-family dwelling buildings, provided such buildings are adjacent to each other on an integral parcel of land undivided by a public highway, street, or railway. Requests for Master -metered multi-family Residential Service subsequent to December 31, 1982, will be evaluated and appr oved if central space conditioning is acceptable to CPAU. Developments with such central systems may continue to qualify for Master-metering.

2. NONRESIDENTIAL

CPAU need not serve Premises directly, but will provide Master-m etered Gas Service, where any of the following conditions are met:

a. The building will contain central heating, air conditioning, or central domestic hot Water and can be shown (using methods of calculation acceptable to CPAU) to be more energy efficient and at a more favorab le cost-benefit ratio than would be the case if individual Metering were installed.

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Metering

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METERINGMETERING EQUIPMENT

RULE AND REGULATION 15

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council

Effective 10-21-2019TBD
Sheet No. 4

b. The building is designed to be subdivided or modified after construction to meet changing space needs of multiple tenants.

3. MULTI-UNIT STRUCTURES CO NSTRUCTED AFTER JANUARY 1, 2018

New multiunit residential structures or mixed -use residential and commercial structures constructed after January 1, 2018 must include a submeter for each dwelling unit, so that tenants can be billed accordingly for their Water use. Requests for Master-metered multi- family Residential Service are subject to review and approval by CPAU.

4. SEPARATE METERING IMPRACTICAL

Where, in the sole opinion of CPAU, it is impractical for CPAU to meter individually each Premise or unit, CPAU may meter only those Premises or units that it is practical to meter, if any.

E. TOTALIZING METERING

CPAU may permit totalizing though a single Electric Meter of the Electricity delivered by two or more separate Services if a Customer is served at primary voltage, has an estimated or actual Load greater than 3,000 kVa, and all Services serv e a contiguous site. A ny exception to CPAU’s standard Metering requirements must be explicit ly addressed by a Rate Schedule or Customer Contract (Rule 5).

(END)

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UTILITY SERVICE AND FACILITIES ON CUSTOMER PREMISES

RULE AND REGULATION 18

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No. 1
A. GENERAL

Rule and Regulation 18 outlines the general re quirements governing Utility Services and Facilities on Customer Premises in the City of Palo Alto. In addition, for information and Rules specific to each type of Utility Service, please refer to the following Special Utility Regulations:

Rule and Regulation 20 – Special Electric Utility Regulations Rule and Regulation 21 – Special Water Utility Regulations Rule and Regulation 22 – Special Gas Utility Regulations Rule and Regulation 23 – Special Wastewater Utility Regulations Rule and Regulation 24 – Special Refuse and Recycling Utility Regulations Rule and Regulation 25 – Special Storm and Surface Water Drainage Utility Regulations
Rule and Regulation 26 – Special Fiber Optics Utility Regulation

B. SERVICE CONNECTION REQUIREMENTS

CPAU will connect Utility Service Lines of suitable capacity to CPAU infrastructure at a Point of Service designated by CPAU, provided that:

1. The property to be connected or upgraded fronts on a public street, highway, alley, lane, or right-of-way along which CPAU has or will instal l the appropriate infrastructure; or the property has a c ontiguous Easement or right-of-way along which CPAU has or will install Utility infrastructure.

2. CPAU has approved, as applicable, the Cust omer’s Utility Service Application and plans, Meter locations, Electric switchboa rd design and location, Water backflow prevention device and Sewer backwater valve type and location, and any other plan deemed necessary by CPAU to complete the connection and/or upgrade.

3. The Applicant has complied with CP AU and Building Department permit and inspection requirements for the project and completed all installations of required Service equipment and/or facilities in accordance with CPAU-approved plans submitted by the Applicant, the Special Utility Regulations listed in section A above, and any applicable Utility standards.

4. The Applicant has paid in full all required connection Charges and fees.

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Utility Service
Connections and Facilities
on Customers' Premises

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UTILITY SERVICE AND FACILITIES ON CUSTOMER PREMISES

RULE AND REGULATION 18

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No. 2

5. The City’s Building Inspector has a pproved the installation authorizing Service to be activated and has issued Meter release tags.

C. OWNERSHIP AND RESPONSIBILITY FOR SERVICE LINES, FACILITIES,

AND EQUIPMENT

1. General

a. Unless otherwise noted in other City of Palo Alto Utilities Rules and Regulations or CPAU Standards, all materials, faciliti es, and equipment installed or used by CPAU, its ag ents, and employees on Customer Premises will at all times be and remain the sole property of CPAU.

Customers must provide CPAU may with immediate and unhindered access to Customer Premises for any purpose connected with providing Utility Service, including, but not limited to be access, repair, replace ment, modification or removale of such Utility facilities, equipment or material, at any time. CPAU will attempt to notify and coordinate material and equipment modifications with Cu stomers when possible and in non- emergency situations.

b. Customers must exercise reasonable care to prevent CPAU equipment on Customer Premises from being damaged or destroyed and must refrain from interfering with same. Customers must immediately notify CPAU upon the discovery of any defect in CPAU equipment.

c. No rent or other Charge whatsoever is permitted to be charged by the Customer against CPAU for placing, maintaining or accessing any Meters, equipment, substations or other facilit ies on the Customer’s Premises that are required to install, maintain, u pgrade or otherwis e provide Utility Service.

D. INSTALLATION OF SERVICE CONNECTION:

1. Only authorized employees or agents of CPAU are allowed to connect Customers’ Electric, Gas, or Fiber Optic Service to, or disconnect those Services from, CPAU’s infrastructure.

2. If the City allows Customers to connect or disconnect the Customer’s Water or Wastewater Service from the City’s distri bution/collection system, then the work Item 4
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Utility Service
Connections and Facilities
on Customers' Premises

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UTILITY SERVICE AND FACILITIES ON CUSTOMER PREMISES

RULE AND REGULATION 18

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-21-2019TBD
Sheet No. 3
shall be observed by and the installation must be approved by a CPAU Water, Gas, and Wastewater Utilities Inspector.

E. RELOCATION OR MODIFICAT ION OF SERVICE CONNECTIONS

1. The Customer is responsible for all costs associated with relocation or modification of Utility facilities or equipment initiated at the Customer’s request, or to provide Utility Service to new load. Under the City’s Lo w Carbon Fuel Standard Program, a credit may be available towards co sts for Utility equipment m odifications required by the installation of Electric Vehi cle Supply Equipment at singl e family or multi-family residential sites, as described in Rate Schedule E-15.

1.2.CPAU may, at its discretion, re locate or modify Utility Se rvice Lines or Points of Service for the purpose of meeting quality control standards, updating outdated equipment, or otherwise improving the functionality of Utility Services.

(END)

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Utility Service
Connections and Facilities
on Customers' Premises

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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 1

GENERAL

In addition to the general requirements outlined in Rule and Regulation 18 for Utility Services and Facilities on Customers’ Premises, the following is required:

B. ELECTRIC SERVICE CONNECTION REQUIREMENTS

1. FACILITIES ON CUSTOMER PREMISES

a. The Customer is responsible for the installa tion of all equipment from the facility to the designated Point-of-Service. For underground systems, this includes conduit and conductors. For overhead systems, because the Point-of-Service is the weatherhead or point of attachment to the facility, this includes the mast or riser and all conductors therein.

b. The Customer is responsible for installing and maintaining all substructures (including, but not limited to, conduits, underground vaults or boxes, and covers) on the Customer’s Premises that are reasonably required for CPAU to provide Electric Service, at the Customer’s expense and in accordance with CPAU requirements, standards, and specifi cations. Substructures are owned and maintained by the Customer, for CPAU’s exclusive use. The Customer is responsible for repairing or replacing the substructure for any reason deemed necessary by CPAU, including deterioration to the extent that the existing conductors/cables cannot be removed.

c. The Customer is required to provide all substructure between the Customer’s Service entrance equipment and the nearest available Point of Service connection, as determined by CPAU. This Point of Service is typically a splice box located near the street and may be in the Public Right-of-Way. In the case of rear easements, this point is typically at a splice box or at the base of a pole riser.

d. Upon approval by CPAU of the substructure installed on the Customer’s Premises, CPAU will install Primary Electric Service conductors and a transformer, if needed.

The Applicant/Customer is responsible for the full cost of installation in accordance with the applicable sections of CPAU’s Electric Service Connection Charges (Rate Schedule E-15), and/or any applicable Sp ecial Facilities Charges. CPAU will determine the type and size of the conductors required.

e. CPAU will assume ownership and responsibility for maintenance of Customer- installed underground Electric Service lateral conductors, as defined in the National Item 4
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Special Electric Utility
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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 2

Electric Code Article 100, only if the Service meets CPAU specifications and it has been approved and accepted by the CPAU Electrical Engineering Manager or his or her designee. Where bus duct or extra flexible cable is required and used, CPAU’s maintenance responsibility for conductors ends at the transformer secondary terminals. The bus duct or extra flexible cable is considered to be the Service entrance conductor for which CPAU assumes no responsibility.

f. All Service switches, fuses, Meter sock ets, Meter and instrument transformer housing and similar devices, irrespective of voltage, required in connection with Service and Meter installation on the Cust omer’s Premises, will be furnished, installed, owned and maintained by the Customer in accordance with CPAU requirements.

g. The Customer must provide a suitable means for CPAU to place its seal on covers of Service enclosures/troughs and instrument transformer enclosures which protect un-metered live circuits installed by the Customer. Such seals may be broken only by CPAU or its authorized agents.

h. CPAU will furnish and install necessary instrument transformers, test facilities and Metering Equipments.

i. Notwithstanding the above subsections (a) through (h), CPAU may, at its discretion , furnish and install additional equipment for the purpose of meeting quality control standards, updating outdated equipment, or otherwise improving the functionality of its Utility Services.

C. SERVICE CONFIGURATIONS

1. OVERHEAD OR UNDERGROUND

a. The standard Service to single family Residential homes in existing overhead areas is overhead. The Director of Utilitie s or his/her designee can require an underground Service for single family Residential Service in areas where system design requires underground Service or would otherwise require the addition of poles to the system.

b. All new Electric Utility Services to Commercial/ Industrial Customers and new subdivisions will be provided by underground facilities on the Customer’s Premises. The on-site underground Electric U tility lines will be provided by the Customer at the Customer’s expense and must meet CPAU specifications.

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Special Electric Utility
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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 3

2. NUMBER OF SERVICES PER BUILDING

Only one Electric Service line is allowed fo r a building or other Premises, except for commercial properties, under the following conditions:

a. Two or more Electric Service Drops or laterals may be extended to a single building provided all wiring supplied for each Service, other than Metering conductors, has no common raceway, connection, or service area with wiring supplied by any other such Service. Approval by the Director of Utilities, or his/her designee, is required, and Special Facilities Charges may apply.

b. Two or more sets of Electric Service entrance conductors may be extended to a single switch gear for the purpose of pr oviding additional capacity or for backup protection. Special Facilities and/or reserve capacity Charges may apply.

3. SERVICES FOR TWO OR MORE COMMERCIAL BUILDINGS ON ONE PARCEL

Only one Electric Service line is allowed on a parcel with multiple commercial buildings except when the Applicant requests, and CPAU ag rees, to install multiple Service Lines.

The additional costs, as estimated by CPAU, will be borne by the Customer, including such continuing ownership costs as may be applicable. See Special Facilities (Section J) below.

4. NUMBER OF ELECTRIC SERVICE PERISCOPES PER SERVICE DROP

Not more than two service periscopes may be served from a single overhead Service Drop.

Overhead Service connections will not be installed where the Customer’s main switchboard is larger than 400 amps.

D. PROTECTIVE DEVICES

1. The Customer is responsible for furnishing, installing, inspecting and keeping in good and safe condition at Customer’s own risk and expense, all appropriate protective devices of any kind or character, which may be requ ired to properly protect the Customer’s facility. CPAU is not responsible for any loss or damage occasioned or caused by the negligence or wrongful act of the Customer, or any of the agents, employees or licensees of the property owner, in omitting, installing, maintaining, using, operating or interfering with any such protective devices.

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Special Electric Utility
Regulations

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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 4

2. The Customer is responsible for locating, in stalling, and maintaining approved protective devices as may be necessary to coordinate properly with CPAU’s protective devices to avoid exposing other Customers to unnecessary Service interruptions.

3. Applicants or Customers who request Primary voltage Service must install, at a minimum, circuit breakers with over-current and ground fault relays. Applicants must submit their planned protection scheme to the City’s Bu ilding and Utilities Departments for approval prior to installing any equipment.

4. The Customer is responsible for equipping th ree-phase motor installations with appropriate protective devices, or for using motors with in herent protective features, to completely disconnect each motor from its power supply. Appropriate protective devices must include the following:

a. Protection in each set of phase conductors to prevent damage due to overheating in the event of overload.

b. Protection to prevent automatic restarti ng of motors or motor-driven machinery which has been subject to a Service interruption and, because of the nature of the machinery itself or the product it handles, cannot safely resume operation automatically.

c. Open-phase protection to prevent damage in the event of loss of voltage on one phase.

d. Reverse-phase protection to prevent uncontro lled reversal of motor rotation in the event of accidental phase reversal. Appropriate installations include, but are not limited to, motors driving elevators, hoists, tramways, cranes, pumps, and conveyors.

5. The Applicant is responsible for installing an d maintaining Service equipment rated for the available short-circuit current at the Point-of-Delivery. This value varies from one location to another, and can change over time. Th e Applicant must consult CPAU for the short- circuit current at each Point-of-Delivery.

6. Any non-CPAU-owned Emergency standby generation equipment must be installed by the Applicant with suitable protective devices to prevent parallel operation with CPAU’s system. The design must be fail-safe, such as with the use of a double-throw switch to disconnect all conductors. Any exception must include a written agreement or Service contract with CPAU permitting such parallel operation.

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Special Electric Utility
Regulations

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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 5

7. Unprotected Service entrance conductors within a building must terminate at a disconnect switch immediately after entering the building. Installation must comply with the National Electrical Code section 230-70, concerning th e location of the disconnect switch, and section 230-6, defining conductors considered outside a building.

E. INTERFERENCE WITH SERVICE

1. GENERAL

CPAU reserves the right to refuse to serve new Loads or refuse to continue to supply existing Loads of a size or character that may be detrimental to CPAU’s operation or to the Service of its Customers. Any Customer who operates or plans to operate any equipment such as, but not limited to pumps, welders, saw mill apparatus, furnaces, compressors or other equipment where the use of Electricity is intermittent, causes intolerable voltage fluctuations, or may otherwise cause intolerable Service interference, must reasonably limit such interference or restrict the use of such equipment upon request by CPAU. The Customer is required to provide and pay for whatever corrective measures are necessary to limit the interference to a level established by CPAU as reasonable, or avoid the use of such equipment, whether or not the equipment has previously caused interference.

2. HARMFUL WAVEFORM

Customers may not operate equipment that s uperimposes a current of any frequency or waveform onto CPAU’s system or draws cu rrent from CPAU’s system of a harmful waveform, which causes interference with CPAU’s operations, Service to other Customers, or inductive interference to communication fa cilities. Examples of harmful waveform include, but are not limited to:

a. Current drawn with high harmonic currents causing transformer or conductor overheating, even if root-mean-square (RMS) loading is within normal limits.

b. Current drawn causing voltage distortion ad versely affecting CPAU or other CPAU Customers.

c. Harmonic currents which exceed the harmonic current distortion limits set in the most recent IEEE Standard 519. In most cases, this equates to a maximum limit of 4% harmonic current on any individual odd harmonic or 5% total harmonic current.

3. CUSTOMER’S RESPONSIBILITY
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Special Electric Utility
Regulations

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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 6

Any Customer causing Service interference to others must take timely corrective action.

Otherwise, CPAU, without liab ility and after giving five (5) days written notice to Customer, will take corrective action. Corre ctive action could include discontinuing Electric Service until a CPAU-approved perm anent and operational solution is provided by the Customer, at Customer’s expense.

4. MOTOR STARTING CURRENT LIMITATIONS

a. The starting of motors must be controlled by the Customer as necessary to avoid causing voltage fluctuations that will be detrimental to the operation of CPAU’s Distribution or Transmission System, or to the Service of any of CPAU Customers.

b. If motor starting causes or is expected to cause detrimental Service to others, a suitable means must be employed, at the Customer’s expense, to limit voltage fluctuations to a tolerable level.

F. PHASE BALANCING

It is the Customer’s responsibility to maintain a balanced Load, as nearly as practical, between supplied circuit phases. In no case can the Load on one side of a three-wire single-phase service be greater than twice that on the other. In no case can the Load on any one phase of a polyphase service be greater than twice that of any other.

G. POWER FACTOR CORRECTION

The Customer is required to provide, at Cust omer’s own expense, Power Factor correction equipment. This equipment must be sized to improve the average Power Factor to at least the level set forth in the applicable Rate Schedule with respect to avoiding a Power Factor penalty.

H. SERVICE DISCONNECT AND METER TEST DEVICES

1. All Service disconnects and similar devices, irrespective of voltage, required by Law in connection with a Service and Meter insta llation on Customer’s Premises, must be furnished, installed and maintained by the Customer. A “Service-disconnecting means”, as defined in the National Electrical Code (NEC), must be installed adjacent to the CPAU Electric Meter(s). Metering equipment must be located on the exterior of the building, unless approved by the CPAU Electric Engineering Manager.

2. When instrument transformers are required by CPAU as part of the Meter installation, Item 4
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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 7

CPAU will install a Meter test bypass block on a mounting plate that must be furnished by the Customer. When instrument transformers are not required by CPAU, the Customer is responsible for providing the Meter test bypass block. Meter test bypass blocks furnished by the Customer must be approved by CPAU in conjunction with Applicant’s plan submittal.

I. SPECIAL POWER SERVICE REQUIREMENTS

1. GENERAL

Where a Customer requests voltage control with less variance than what is specified in Rule and Regulation 3 (Description of Utility Services), the Customer must reimburse CPAU for its cost to provide, at CPAU’s sole option and discretion, any special or additional equipment to meet the Customer’s special needs.

2. NONSTANDARD OR EXCESSIVE CUSTOMER REQUIREMENTS

a. In order to prevent damage to CPAU’s equipment and impairment of its Service, the Customer must give CPAU notice before making any additions to the connected Load so that CPAU, at its option, may provi de such facilities as may be necessary for furnishing the increased Service.

b. If a Customer’s Load is of sufficient magnitude that it exceeds the capacity of CPAU’s Distribution System, the Customer may be required by CPAU to shift peak loading to off-peak periods and/or receive service from CPAU’s 60 kilovolt sub- Transmission System.

J. SPECIAL FACILITIES

1. Special Facilities are fac ilities requested by an Applicant in addition to or in substitution for standard facilities which CPAU would no rmally provide. Standard facilities are for delivery of Service at one point, through one Meter, at one voltage class under CPAU Rate Schedules.

2. CPAU normally installs only t hose standard facilities which it deems are necessary to provide regular Service in accordance with applicable CPAU Rules and Utility Standards.

Where the Applicant requests that CPAU inst all Special Facilities and CPAU agrees to make such an installation, the additional costs thereof, as estimated by CPAU, will be borne by the Applicant, including such continuing ownership costs as may be applicable. These costs will be calculated by CPAU based on the net present value, and must be paid by the Item 4
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RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 8

Applicant in advance of installation unless alternative payment arrangements are approved by the Director of Utilities.

3. Unless otherwise provided by CPAU’s applicable Rules and Utility Standards, Special Facilities will be installed, owned and main tained by CPAU as an accommodation to the Applicant only if acceptable for operation by CPAU and if the reliability of Service to CPAU’s other Customers is not impaired.

4. Installation of Special Facili ties will require a contract between the Applicant and the City of Palo Alto.

K. NEIGHBORHOOD FUNDING OF SUBSURFACE EQUIPMENT

1. REPLACEMENT OF SUBSURFACE EQUIPMENT

a. Notwithstanding the provisions of Rule and Regulation 3(B)(3), in Underground Utility Districts in which the existing equipment required to provide Electric Service to Customers is subsurface, the Utilities Director, or his/her designee, may, at the end of the service life of such equipment vaults or equipment, authorize their replacement with new subsurface equipment if the following conditions are met:

(i) The Utilities Director, or his/her designee, determines that the installation of subsurface equipment is practicable; and
(ii) Such installation has been requested by property owners in the manner set forth in this subdivision K; and
(iii) The City receives funding for the subsurface installation as set forth in this subdivision K.

b. For purposes of this subdivision K, “Neighborhood-Funded Subsurface Installation” means all vaults and equipment the installation of which has been funded pursuant to this subdivision K.

c. CPAU operates its utilities in accordance with Prudent Utility Practice. As is always the case with CPAU’s Electric Distribution System and any CPAU-operated equipment, CPAU reserves the right to operate, maintain, rehabilitate, and replace equipment at such time and in such manner as it determines is necessary or useful for the safe and effective operation of the Electric Distribution System. Consequent ly, nothing in this subdivision K should be interpreted to:

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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 9

(i) Require that CPAU, at the end of the useful life of a Neighborhood-Funded Subsurface Installation, replace that equipment with a subsurface installation; or (ii) Prohibit CPAU, subsequent to the installation of a Neighborhood-Funded Subsurface Installation, from installing pad-mounted eq uipment in the territory served by that Neighborhood-Funded Subsurface Installation if the Utilities Director determines that such installation is necessary or prudent; or
(iii) At any time prohibit CPAU from replaci ng all or part of a Neighborhood-Funded Subsurface Installation with pad-mounted equipment if CPAU is required to do so by Law or if the Utilities Director determines that the continued operation of all or part of the Neighborhood-Funded Subsurface Installation presents an unacceptable hazard to public safety, employee safety, or system reliability, or is contrary to Prudent Utility Practice.

2. REQUEST FOR PETITION FORM

a. Upon receiving a timely written request signed by owners of at least five parcels of real property in an area served by a subsurface installation, CPAU will prepare the petition form described in subdivision (3)(c) of this subdivision (K).

b. A request will be considered timely only if (i) it is submitted to the Utilities Director, or his/her designee no later than 30 days following the distribution of the first courtesy notice regarding the planned replacement of a subsurf ace installation or (ii) the Utilities Director determines that the work schedule for such replacement will permit the time necessary for the process described in subdivisions (3) and (4) of this subdivision (K).

c. Nothing in this subdivision (K) will be interp reted to require the preparation of a petition form or the provision of time for circulation of a petition if the Utilities Director determines that either the work schedule for a project or operational requirements will not make it practicable to allow time for preparation and ci rculation of the petition and collection of funding by proponents.

3. REQUEST FOR SUBSURFACE EQUIPMENT

a. The owners of real property located in a Underground Utility District may request the replacement of existing vaults and equipment with new subsurface equipment by submitting a petition to the Utilities Director, or his/her designee.

b. The petition must be signed by the owners of not less than 60% of the parcels in the Underground Utility District.

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SPECIAL ELECTRIC UTILITY REGULATIONS

RULE AND REGULATION 20

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective TBD10-21-2019
Sheet No. 10

c. The petition must be on the form prepared by CPAU pursuant to subdivision (2) of this subdivision (K). The form must include a map or description of the area to be served by the Neighborhood-Funded Subsurface Installation; a summary of this procedure for Neighborhood Funding of Subsurface Equipmen t; as well as any additional information deemed necessary or useful by the Utilities Director, or his/her designee.

d. The form must indicate the name and contact information of one property owner who will serve as proponent for the project and must indicate the date on which the form was issued to that proponent and the amount of the payment required by subdivision (f) of this subdivision (3).

e. To be valid, the signed petition must be returned to the Utilities Director, or his/her designee, no later than 45 days after the form is issued to the proponent.

f. The signed petition must be accompanied by a payment to cover the cost of developing a cost-estimate for the proposed subsurface replacement. The amount of this payment, as determined by the Utilities Director or his/her designee, will be indicated on the form.

4. FUNDING OF SUBSURFACE EQUIPMENT

a. Upon receipt of a valid petition, the Utilities Director, or his/her designee, will provide the proponent with either (i) a written estimate of the cost of a subsurface installation (including the net present value of any unusual continui ng ownership costs associated with such installation) or (ii) a finding that such installation is not practicable. The proponent will also be provided with an estimate of the cost of a standard installation.

b. The City will proceed with the subsurface instal lation if and only if within 90 days of the date upon which the Utilities Director, or his/her designee, provides a written estimate pursuant to subdivision (a) of this subdivision (4 ), the City receives payment in full for the estimated cost difference between the subsurface and the standard installation.

c. It is the responsibility of the proponent to raise the funding required by this Section and the entire cost must be paid to the City at one time. The City will not collect funds from property owners or community members nor will it requ ire any person or property owner to pay any portion of the costs.

d. The Utilities Director, or his/her designee, may extend the payment deadline set forth in this subdivision.

(END)
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CITY OF PALO ALTO UTILITIES
Issued by the City Council

Effective 09/1/19TBD
Supersedes Sheet No.C-1-1 dated 05-01-1509/01/19
Sheet No.C-1-1

UTILITY MISCELLANEOUS CHARGES

UTILITY RATE SCHEDULE C-1

Charges under this Rate Schedule may be either mailed to the responsible party in a form of invoice or added to the regular monthly Utilities bill of the C ustomer receiving the Service, and non -payment may result in termination of Service.

Charges During Charges After
Regular Hours1 Regular Hours
A. SERVICE CALLS AND OTHER SERVICE WORK:

1. Setting Electric Meter2 No Charge $204.00

2. Disconnection of Service
for non-payment of Utilities Charges $152.00 Not applicable

3. Restoration of Service following
disconnection for non-payment of Utilities Charges $152.00 $204.00

4. Restoration of Electric Service at power pole following disconnection for non-payment of Utilities Charges $304.00 $408.00

B. LABOR, ENGINEERING AND INSPECTION RATES PER HOUR PER PERSON:

1. Service provided during regular work hours $152.00 Not applicable

2. Service provided on overtime basis where the
overtime is scheduled at the City's convenience. Not applicable $178.00

3. Service provided on overtime basis where the
overtime is scheduled at the Customer's convenience. Not applicable $204.00

C. RETURNED PAYMENTS: See City of Palo Alto Municipal Fee Schedule.

D. LATE PAYMENTS: Two percent (2%) of unpaid balance of Utilities Charges

E. DEPOSITS:

1. Customer deposit for Meter accuracy test $0-300.00 Not applicable

F. AMI OPT-OUT FEES3:

1. Set Up Charge $100.00 Not applicable

2. Monthly $25.00 Not applicable

{End}

1 Regular hours are 8am to 5pm, Monday through Friday, excluding legal holidays. 2 For Water Meters see Utility Rate Schedule W-5, for Gas Meters see Utility Rate Schedule G-5. 3 AMI Opt-Out Fees apply to Electric and Gas meters only. There is no option to opt-out for Water meters.

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Schedule C-1

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RESIDENTIAL RATE ASSISTANCE PROGRAM
UTILITY RATE SCHEDULE C-4

CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective TBD7-1-
2009
Sheet No.C-4-1

Supersedes Sheet No.C-4-1 dated 6-1-20057-1-2009
Sheet N

o.C-4-1

A. APPLICABILITY:

This schedule applies to residential premises that qualify for participation in the Utilities Residential Rate Assistance Program.

Residential premises within the city limits of Palo Alto may include a single-family dwelling, a multi-family dwelling, a mobile home, or trailer home. The residential dwelling must be served either (i) by a separately metered utility service(s), (ii) master-metered accounts that provide utility electric or gas services to applicable tenant dwellings in qualifying subsidized housing communities, or (iii) be within a mobile home or trailer park, having electric or gas utility service sub-metered by the landlord-owner.

B. RATES:

The Rate Assistance Program provides residential customers with a discount of twenty-five percent (25%) on electric and natural gas rates, and twenty percent (20%) on storm drainage charges listed in the applicable City of Palo Alto Utilities Electric, Natural Gas and Storm Drain Rate Schedules.

C. AMI OPT-OUT FEES1:

1. Set Up Charge $50.00

2. Monthly $10.00

C.D. SPECIAL CONDITIONS:

1. Application for participation in the Rate Assistance Program (RAP) must be made annually, although there is no maximum length-of-term for program participation.

2. Customer participation in the RAP is limited to residential electric, natural gas, and storm drain services.

3. Residents may qualify for participation in the RAP for either medical or economic reasons:

To qualify for medical reasons, a resident must annually provide a physician's letter certifying the medical condition of the resident and the medical necessity as a result of that condition of either (i) special medical equipment requiring substantial electricity or gas, or (ii) special environmental temperature needs.

1 AMI Opt-Out Fees apply to Electric and Gas meters only. There is no option to opt -out for Water meters.

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Schedule C-4

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RESIDENTIAL RATE ASSISTANCE PROGRAM
UTILITY RATE SCHEDULE C-4

CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective TBD7-1-
2009
Sheet No.C-4-1

Supersedes Sheet No.C-4-1 dated 6-1-20057-1-2009
Sheet N

o.C-4-1

To qualify for economic reasons, residents must meet United States Department of Housing and Urban Development (HUD) Guidelines for low income. In order to remain on the program, the City requires that a resident provide proof of annual household income. Residents participating in RAP based on economic reasons will be eligible to receive a 25 percent discount on gas and electric, and 20 percent% discount on storm drainage charges. Residents participating in RAP based on medical reasons will be eligible to receive a 25 percent discount on the applicable gas, and/or electric charges.

4. A condition of participating in RAP, customers must enroll and participate in the Utilities Department “Residential Energy Assistance Program (REAP)”. REAP provides free customer educational materials, efficiency assessment of the residence, installation of eligible weatherization measures, repair or replacement of eligible appliances, and a natural gas leak safety inspection. Customer failure to participate in REAP will disqualify current and future participation in the Rate Assistance Program.

5. Participation in the RAP is limited to the primary residence of the customer, with one qualifying residence per individual customer.

6. The 25 percent discount in electric and gas charges and the 20 percent discount in the storm drain charges do not relieve the customer of the obligation to pay the Utility Users Tax.

Such tax will be computed on the gross utility charges before the application of the discount.

7. Participation in the RAP does not relieve the customer from the obligations to pay utility charges when due, or meet the requirements of any Utilities Department Rule and Regulation.

8. It is unlawful to knowingly provide incorrect information in connection with a RAP application. Such violation could result in a $1,000 fine or six months in jail, or both.

E.D. The procedures for qualification and interpretation of the provisions of this Rate Schedule, or other Rules and Regulations applicable to the Rate Assistance Program shall be made by the City Manager or designee whose determination shall be final. {End} Item 4
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Schedule C-4

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: April 3, 2023
Staff Report: 2301-0895

TITLE
Approval of the Utilities Department‘s 2023 Legislative Guidelines

RECOMMENDATION
Staff recommends the City Council approve the Utilities Department‘s 2023 Legislative Guidelines as reviewed and approved by the Utilities Advisory Commission.

EXECUTIVE SUMMARY
On February 1, 2023 1, the Utilities Advisory Commission (UAC) received a staff presentation related to 2022 state legislation and potential regulatory, legislative, and state budget issues for 2023. After the verbal presentation, staff recommended the UAC approve a set of legislative guidelines for 2023, subject to Council approval. After a review of draft guidelines and a discussion of the staff proposal, the UAC voted to approve the 2022 guidelines for 2023.

BACKGROUND
The Utilities Department is possibly the City’s most regulated department, particularly at the state level. The scope and breadth of regulatory and legislative action span most utility lines, especially the water and electric utility. Examples of the issues with recent government action in just these two utility lines include: water quality testing and reporting, wildfire mitigation action reporting, carbon emission accounting, electric resource adequacy requirements, water pipe testing, bond financing, notification procedures prior to fieldwork, and electric resource planning.

This unique public policy environment - and the related staff effort necessary to respond, educate policymakers, inform stakeholders, and advocate for departmental priorities - calls for a set of legislative guidelines specific to the Utilities Department. These guidelines, approved by the UAC 1 Item 5
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and Council annually, work in parallel with the City’s own legislative guidelines and the City’s Advocacy Process Manual, the latter of which specifically notes the distinction of the Utilities Department.

Per the annual process, on February 1, 20231 the UAC discussed and formally moved that the City Council approve the 2023 Utilities Legislative Guidelines (Attachment A). At the February 1 meeting, staff suggested changes to the guidelines for 2023. The changes were an attempt to remove the call to any specific action and clarify values while maintaining the same set of principles as in prior years. The UAC found the suggested changes to be too vague and ambiguous, such that they would provide little actual guidance, particularly to any new staff participating in the Utilities legislative and regulatory affairs program. As such and as the 2022 guidelines served the current staff well, the principles remain the same, and there is no apparent need to significantly change them for 2023, the UAC voted to approve the 2022 guidelines for 2023.

As an indication of effectiveness, this is the third time the UAC has approved the same guidelines.

When first crafted in 2020, the guidelines were intended to be evergreen in nature, subject to Council approval and UAC review each year. The attempt to craft ongoing guidelines that allow for reasonable staff discretion and annual UAC discussion has worked well. Council is now asked to approve the same guidelines for 2023 that it approved on January 13, 20202, February 8, 20213, and February 7, 20224. This request corresponds with the November 7, 20225 Council staff report noting that the UAC “will make their recommendations soon, reflecting recent City Council actions and bring the proposed 2023 Utilities Legislative Guidelines for City Council adoption on Consent in early 2023.” Also, of note in the Citywide Legislative Guidelines, the City Council added a new guideline to ”Strengthen and modernize the State and Local electric grids” as a link to Utilities Guideline #13 of “Support government action to expand the workforce in trades and technical disciplines necessary to support building and vehicle electrification and grid modernization” (based on City Council direction during an SCAP discussion in late 2022).

FISCAL/RESOURCE IMPACT
1 Utilities Advisory Commission Meeting February 1, 2023 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2023/02-feb-2023/02-01-2023-id-14676-item-

3.pdf
2 Utilities Advisory Commission Meeting January 13, 2020 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020/id-10772.pdf
3 Utilities Advisory Commission Meeting February 8, 2021 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11968.pdf
4 City Council Staff Report 13904 https://portal.laserfiche.com/Portal/DocView.aspx?id=59361&repo=r-704298fc 5 City Council Staff Report 14913 https://portal.laserfiche.com/Portal/DocView.aspx?id=59153&repo=r-704298fc Item 5
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There is no direct resource impact associated with adopting legislative guidelines for the Utilities Department. However, actions taken that support the efficient use of the City’s resources will help control costs, implement the Council’s policies and goals, and protect the interests of our community.

STAKEHOLDER ENGAGEMENT
The guidelines were informed through an internal and external stakeholder process involving gaining information from internal departments and business associations. Additionally, the guidelines were reviewed and discussed at a noticed public hearing.

ENVIRONMENTAL REVIEW
This report is not a project for the purposes of the California Environmental Quality Act; an environmental review is not required.

ATTACHMENTS
Attachment A: Draft 2023 Utilities Legislative Policy Guidelines APPROVED BY:

Dean Batchelor, Director of Utilities
Staff: Heather Dauler, Sr. Resource Planner
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Attachment A

UTILITIES LEGISLATIVE POLICY GUIDELINES: 2023 UPDATE

City of Palo Alto Utilities Department (CPAU) staff will use the below guidelines as well as the City’s guidelines to help determine any advocacy position or action on Utilities-related issues. Formal advocacy, such as submitting written letters or comments and meeting with policymakers and/or staff, requires the approval of the Utilities Director or his designee.

1. Seek to preserve local government flexibility, discretion, accountability, and oversight of matters impacting utility programs, services, activities, and rates. Oppose action that could hamper or minimize this flexibility or discretion.

2. Where possible, seek funding and program incentives.

3. Advocate for reasonable government action with minimal customer impact that allows for flexibility and implementation feasibility.

4. Advocate for locally-designed conservation or efficiency programs. Support reasonable State conservation or efficiency requirements that consider local populations, environment, and resources.

5. Inform state and federal policymakers about CPAU’s current programs, services, goals, and reporting requirements.

6. Oppose unnecessary, unreasonable, impractical, or costly rates or mandates.

7. Collaborate with and support the efforts of regional agencies and associations whose goals align with ours.

8. Advocate for fair cost allocation and support the principle of beneficiary pays.

9. Support efforts to maintain or improve the security and reliability of our infrastructure.

10. Support government action that cost effectively reduces greenhouse gas emissions.

11. Promote locally-designed residential and commercial electrification programs.

12. Support government action allowing CPAU to maintain customer confidentiality.

13. Support government action to expand the workforce in trades and technical disciplines necessary to support building and vehicle electrification and grid modernization.

Approved by the Utilities Advisory Commission on February 1, 2023 Approved by City Council on _____________, 2023
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2023 Utilities Legislative
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: April 3, 2023
Report #:2302-0976
TITLE
2850 West Bayshore [22PLN-00364]: Approval of Final Map for a single-lot subdivision for condominium purposes for 48 attached townhome condominiums. Environmental Assessment:

Exempt per CEQA Guidelines Section 15332. Zoning District: ROLM (Research, Office, and Manufacturing).

Recommendation
Staff recommends that the City Council approve the final subdivision map on consent calendar.

The final map action follows the Council’s June 20, 2022 approval of the Tentative Map, pursuant to Palo Alto Municipal Code Chapter 21.16 and the Subdivision Map Act.

Executive Summary
The requested action is the approval of a final subdivision map for recordation. This action follows Council’s review and approval of the Tentative Map application per the Planning and Transportation Commission’s recommendation. The Final Map was submitted by John Hickey on behalf of SummerHill Homes. The Final Map reflects the 48 parcels and private streets shown on the Tentative Map Council approved on June 20, 2022. Staff will return at a later date for approval of an easement relocation to provide utilities for the project and the neighboring property.

Background
A subdivision map is the legal document recorded with the County to create distinct parcels of real property for separate ownership. There are typically two steps to the subdivision process – a preliminary or tentative map, which involves the exercise of discretion, and a parcel map or final map, which is typically more ministerial. A tentative map will set forth the conditions that must be satisfied before a final map will be approved. Subdivision maps are prepared under the direction of a registered civil engineer and is based on a survey. The map includes easements for utilities and access. In the case of condominium subdivisions, the City is only responsible for reviewing the number of condominium parcels to be created; the State of California Department of Real Estate is responsible for reviewing the boundaries of each condominium “air parcel” in a condominium plan.

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The Planning and Transportation Commission (PTC) reviewed the Tentative Map in a public hearing on May 25, 20221 and recommended approval to the City Council.

On June 20, 20222, the City Council reviewed the map in a public hearing and approved the Major Architectural Review and Tentative Map applications with approval conditions. The record of land use action by the City Council was based on its findings that the proposed subdivision will have no significant environmental impact and is in conformance with all state and local laws and regulations, and applicable Comprehensive Plan Elements in effect at that time (Attachment B).

Analysis
On June 20, 2022, the City approved a Tentative Map for submitted by SummerHill Homes for 2850 West Bayshore Road. The 2.34-acre project site is in the Midtown neighborhood at the intersection of Colorado Avenue and West Bayshore Road. The Final Map includes 48 condominium parcels, with a central point of access on West Bayshore Road.

As required by the Subdivision Map Act, after review and confirmation by various City departments, staff determined that the Final Map presented substantially conforms to the approved tentative map and its conditions. Approval of a Final Map is ministerial as long as the Final Map is in substantial conformance with the approved Tentative Map. While many cities delegate approval of the Final Map to the City Engineer, under PAMC Section 21.16, the City Council is responsible for the approval. The Final Map also includes a Subdivision Improvement Agreement, describing any obligations for improvements by the subdivider and the payment of bonds by the subdivider for financial security to ensure these improvements are completed as described within the Subdivision Improvement Agreement.

Not anticipated during the Tentative Map review, there is an existing utility easement that runs across Greer Park which serves both 2800 and 2850 West Bayshore Road. The applicant has stated that maintenance needs to be performed on the easement but due to the alignment of the sewer line, a new manhole would be needed on Field #3 in Greer Park. In order to prevent this impact, the applicant and City have agreed to vacate the existing easement in place and propose a new easement slightly South of it. This new easement will run straight across Greer Park and will not require a new manhole which will eliminate long-term impacts to the Park outside of construction to build the new sewer line. On March 6, 2023 the City Council adopted a Park Improvement Ordinance on first reading to permit this utilities work. Staff will return in the near future for approval of the easement relocation.

Summary of Key Issues & Policy Implications
1 May 25, 2022 Planning and Transportation Commission Staff Report:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/planning-and- transportation-commission/2022/ptc-05.25.2022-2850.pdf) 2 June 20, 2022 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220620/20220620pccsm-amended-final-final.pdf Item 6
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The Final Map is the document containing the statements, acknowledgements and agreements from the property owner, surveyor, City officials and beneficiaries that the Final Map is in conformance with all applicable regulations and the approved Tentative Map. There are no policy implications related to the approval of the Final Map, since the map is substantially consistent with the approved Tentative Map.

Environmental Review
The subject project was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the City’s environmental regulations. As noted earlier in this report, the City’s consultant, Rincon evaluated the existing building and found it ineligible for the California Register of Historic Resources.

Attachment H is the Categorical Exemption staff prepared pursuant to CEQA. The Categorical Exemption is also available for review on the project webpage at https://bit.ly/3CnpVJT. The project would not cause significant impacts to the environment and qualified as a Class 32 (In-Fill Development Projects) Exemption.

ATTACHMENTS:

A. Location Map
B. Signed Record of Land Use Action
C. Project Plans & Environmental Documents
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 6
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Community_Building
Colorado_Pump Station
Colorado Substation

8.3'
1003.3'
709.3'
355.0'

56.0'
261.9'

10.2'
441.4'341.9'

44.3'
156.3'

27.1'
119.6'
199.9'
244.8'
337.2'
767.0'
232.5'

55.0'

87.9'
112.2'148.6'

08.2'

60.0'

89.0'

97.9'
10 8.2'

16.1'

8.1'
112.7'

24.2'
112.4'

24.2'

39.1'

9.6'

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EAST BAYSHORE ROAD

WEST BAYSHORE ROAD

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Greer Pa
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Emily Renzel Wetlands
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

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Project Site
Current Features
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Location Map:
2850 W Bayshore

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ACTION NO. 2022-01

RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 2850 WEST BAYSHORE ROAD: MAJOR ARCHITECTURAL REVIEW AND CONDITIONAL USE PERMIT [21PLN-00177] AND VESTING TENTATIVE MAP [21PLN-00178] (SUMMERHILL HOMES, APPLICANT)

At its meeting on June 20, 2022, the City Council of the City of Palo Alto (“City Council”) approved a Conditional Use Permit, Major Architectural Review , and a Vesting Tentative Map application for the development of a 48-unit townhouse project and subdivision request making the following findings, determinations and declarations:

SECTION 1. Background.

A. On June 22 , 20 21, SummerHill Homes applied for entitlements for a development project including: Architectural Review , Conditional Use Permit, D esign Enhancement Exception, and Vesting Tentative Map for the development of a 48-unit townhouse project and subdivision of airspace (“The Project”). After the first formal Architectural Review Board (ARB) meeting, the applicant removed the Design Enhancement Exception. The applicant applied for a development standard concession in accordance with State Density Bonus law and Palo Alto Municipal Code (PA MC) 18.15.080 to request a Floor Area Ratio of 1.137:1.0 where 0.6:1.0 is the standard allowance.

B. The project site is comprised of one existing lot (APN No. 127-01-160) of approximately 2.34- acres within the Research Office and Limited Manufacturing (ROLM) zoning district. The site contains one existing commercial office building. Commercial land uses are located adjacent to the lot to the North, and the site is surrounded by Greer Park to the West and South . To the project’s East is the Highway 101 Freeway.

C. Following staff review, the ARB reviewed the Major Architectural Review application for a second time on April 21, 2022 and recommended denial, based on suggested revised findings to the staff report.

D. Following review from the Planning and Transportation Commission, the Commission recommended approval for the Vesting Tentative Map on May 25 , 202 2, subject to conditions of approval.

E. On June 20, 2022, the City Council held a duly noticed public hearing, at which evidence was presented and all persons were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council’s policies and procedures.

SECTION 2. Environmental Review.

The subject project was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the City’s environmental regulations.

The City’s consultant, Rincon , evaluated the existing building and found it inelig ible for the California Register of Historic Resources. It was determined the project would not cause significant impacts to the environment and qualified as a Class 32 (In -Fill Development Projects) Exemption , as further documented on the project webpage at https://bit.ly/3CnpVJT.

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SECTION 3. Tentative Map Findings
A legislative body of a city shall deny approval of a tentative map, if it makes any of the following findings (California Government Code Section 66474). The City Council cannot make these findings for the following reasons:

1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451:

The site is consistent with the Comprehensive Plan as described below.

2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: The Project is consistent with the following Comprehensive Plan policies:

Comprehensive Plan Goal/Policy Consistency
Policy L-1.6: Encourage land uses that address
the needs of the community and manage
change and development to benefit
the community.

The project provides 48 for-sale housing units
at a site that was previously used as office
space. 15% of the units will b e sold at
moderate income levels. The project seeks to
addresses the housing crisis that the City
Council has identified as a top priority. The
project will not result in an increase in trips to
the site during peak hours and will provide a
connection to G reer Park for residents and
guests.

Policy L -2.5: Support the creation of
affordable housing units for middle to lower
income level earners, such as City and school
district employees, as feasible.

The project proposes seven for-sale units that
will sold at moderate income levels in
accordance with PAMC 18.15.

Policy L -2.11: Encourage new development
and redevelopment to incorporate greenery
and natural features such as green
rooftops, pocket parks, plazas and rain
gardens.

The project includes a communal park area at
the center of the site and incorporates
landscaping around and throughout the site.

Additionally, the project provides an internal
connection to Greer Park so that residents
and visitors may access the neighborhood
amenities.

Policy L-9.3: Treat residential streets as both
public ways and neighborhood amenities.

Provide and maintain continuous sidewalks,
healthy street trees, benches and other
amenities that promote walking and “active”
transportation.

The project proposes to maintain most of the
existing street trees along the W. Bayshore
frontage. In addition to this, the project
modifies the street frontage to incorporate
additional landscaping and bioswales.

Policy T-1.17: Require new office, commercial The project proposes a right of way easement DocuSign Envelope ID: 9E4BEE6B-A0A9-403E-B42E-9BF3B16FCBD8 Item 6
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Comprehensive Plan Goal/Policy Consistency
and multi-family residential devel opments to
provide improvements that improve bicycle
and pedestrian connectivity as called for in the
2012 Palo Alto Bicycle + Pedestrian
Transportation Plan.

Policy T-1.19: Provide facilities that encourage
and support bicycling and walking.
along the site frontage in order to expand the
bike lane across the site.

Policy T -5.1: All new development projects
should manage parking demand generated by
the project, without the use of on -street
parking, consistent wi th the established
parking regulations. As demonstrated parking
demand decreases over time, parking
requirements for new construction should
decrease.

The project provides all its required parking
onsite.

Policy N-2.10: Preserve and protect Regulated
Trees, such as native oaks and other
significant trees, on public and private
property, including landscape trees approved
as part of a development review process and
consider strategies for expanding tree
protection in Palo Alto.

The project protects eight o f the existing
street trees on the site and a majority of the
existing trees which are shared between
Greer Park and the project site. No protected
species are proposed for removal. Any
removed regulated tree is replaced pursuant
to City requirements.

Policy S -2.8 Minimize exposure to flood
hazards by protecting existing development
from flood events and adequately reviewing
proposed development in flood prone areas.

The project site will be filled in order to raise
the units to meet the AE10.5 flood zone
requirements for the property.

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.

The project includes 15% of the proposed
units as below market rate.

3. That the site is not physically suitable for the type of development:

The Project site is suitable for residential use development; it is comprised of one large relatively flat lot that is 2.34 acres in size. The lot would be subdivided into air parcels for condominium purposes not to exceed 48 residential condominium units. The minimum site area, width, and depth for development in the ROLM zoning district is already met by the existing parcel boundaries and the site does not seek to modify that. A public right of way easement will be dedicated with the Final Map to the provide for an expanded bicycle lane along West Bayshore Road. The Project site would allow for DocuSign Envelope ID: 9E4BEE6B-A0A9-403E-B42E-9BF3B16FCBD8 Item 6
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48 multi-family residential units as permitted for RM-30 development standards in the ROLM zoning district.

4. That the site is not physically suitable for the proposed density of development:

The project would create 48 multi-family residential units which are compliant with the minimum/maximum allowable residential density as calculated for the total site area (16/30 dwelling units per acre = 37/70 dwelling units, respectively).

5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat:

The City’s consultant determined that the project qualifies under a Class 32 Exemption from CEQA. As a result, the Project will not cause environmental damage or injure fish, wildlife, or their habitat, in that the property is currently developed and not adjacent to sensitive habitat areas.

6. That the design of the subdivision or type of improvements is likely to cause serious public health problems:

The City’s consultant determined that the project qualifies under a Class 32 Exemption from CEQA. As a result, the Project will not cause serious public health problems.

7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision.

The design of the subdivision will not conflict with any easements for access through or use of the property. A public right of way easement will be dedicated with the Final Map to the provide for an expanded bicycle lane along West Bayshore Road.

SECTION 4. Architectural Review Findings
In order to make a recommendation of approval, the project must comply with the following Findings for Architectural Review as required in Chapter 18.76.020 of the PAMC.

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

The project is consistent with the following Comprehensive Goals/Policies:

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

The project provides building that is stepped
back from the adjacen t commercial uses at
2800 West Bayshore Road and incorporates
landscaping as a buffer to minimize impacts
from the new building. The site also
incorporates access to the Greer Park for
tenants and visitors to have access to
neighborhood amenities. There ar e
articulations to break up the vertical massing
so that the building does not appear
overwhelming. Where the project could
utilize state law to reduce the parking
requirements for the site, it has instead
provided parking in conformance with PAMC

18.52. All utilities can serve the site.

Policy L-1.6: Encourage land uses that address
the needs of the community and manage
change and development to benefit
the community.

The project provides 48 for-sale housing units
at a site that was previously used as of fice
space. 15% of the units will be sold at
moderate income levels. The project seeks to
addresses the housing crisis that the City
Council has identified as a top priority. The
project will not result in an increase in trips to
the site during peak hours and will provide a
connection to Greer Park for residents and
guests.

Policy L -1.11: Hold new development to the
highest development standards in order to
maintain Palo Alto’s livability and achieve the
highest quality development with the least
impacts.

The architectural review process includes
findings and context -based design criteria
necessary to develop the project. The project
is subject to the Architectural Review process.

Policy L -2.5: Support the creation of
affordable housing units for middle to lower
income level earners, such as City and school
district employees, as feasible.

The project proposes seven for-sale units that
will sold at moderate income levels in
accordance with PAMC 18.15.

Policy L -2.11: Encourage new development
and redevelopment to incorporate greenery
and natural features such as green
rooftops, pocket parks, plazas and rain
gardens.

The project includes a communal park area at
the center of the site and incorporates
landscaping around and throughout the site.

Additionally, the project provides an internal
connection to Greer Park so that residents
and visitors may access the neighborhood
amenities.

DocuSign Envelope ID: 9E4BEE6B-A0A9-403E-B42E-9BF3B16FCBD8 Item 6
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Comprehensive Plan Goal/Policy Consistency
Policy L-2.12: Ensure that future development
addresses potential risks from climate change
and sea level rise.

The project site will be filled in order to raise
the units to meet the AE10.5 flood zone
requirements for the property.

Policy L -3.1: Ensure that new or remodeled
structures are compatible with the
neighborhood and adjacent structures.

The project has a contemporary design which
is distinct from the adjacent building at 2800
West Bayshore Road but it is not opulent in
the manner that it would diminish or detract
from the aesthetic quality of the
neighborhood or create disparate and
irreconcilable building designs.

Policy L -3.4: Ensure that new multi -family
buildings, entries and outdoor spaces are
designed and arranged so that each
development has a clear relationship to a
public street.

The proposed project modifies the site so that
Buildings 1, 2, and 3 and their entries and
primary facades face 2850 W. Bayshore Road.

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

The project utilizes high quality materials and
breaks up its faca des so that the building is
not overly massive in scale to adjacent
properties. The project also provides a
connection to Greer Park at the Southwest
corner of the site for residents and guests. The
project also expands the bike lane on W.

Bayshore Road by recording a right -of-way
easement along the front of the property.

Policy L-6.2: Use the Zoning Ordinance, design
review process, design guidelines and
Coordinated Area Plans to ensure high quality
residential and commercial design and
architectural compatibility.

The project utilizes high quality materials and
breaks up its facades so that the building is
not overly massive in scale to adjacent
properties.

Policy L-9.3: Treat residential streets as both
public ways and neighborhood amenities.

Provide and maintain continuous sidewalks,
healthy street trees, benches and other
amenities that promote walking and “active”
transportation.

The project proposes to maintain most of the
existing street trees along the W. Bayshore
frontage. In addition to this, t he project
modifies the street frontage to incorporate
additional landscaping and bioswales.

Policy T-1.17: Require new office, commercial
and multi-family residential developments to
provide improvements that improve bicycle
and pedestrian connectivity as called for in the
2012 Palo Alto Bicycle + Pedestrian
The project proposes a right of way easement
along the site frontage in order to expand the
bike lane across the site.

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Comprehensive Plan Goal/Policy Consistency
Transportation Plan.

Policy T-1.19: Provide facilities that encourage
and support bicycling and walking.

Policy T -5.1: All new development projects
should manage parking demand generated by
the project, without the use of on -street
parking, consistent with the established
parking regulations. As demonstrated parking
demand decrease s over time, parking
requirements for new construction should
decrease.

The project provides all its required parking
onsite.

The project protects eight of the existing
street trees on the site and a majority of the
existing trees wh ich are shared between
Greer Park and the project site. No protected
species are proposed for removal. Any
removed regulated tree is replaced pursuant
to City requirements.

Policy N -6.6: Apply site planning and
architectural design techniques that reduce
overall noise pollution and reduce noise
impacts on proposed and existing projects
within Palo Alto and surrounding
communities.

The project includes a sound wall along the
101 Highway in order to reduce noise impacts
to residents.

Policy S -2.8 Minimize exposure to flood
hazards by protecting existing development
from flood events and adequately reviewing
proposed development in flood prone areas.

The project site will be filled in order to raise
the units to meet the AE10.5 flood zone
requirements for the property.

The project includes 15% of the proposed
units as below market rate.

Finding #2: The project has a unified and coherent design, that:
a. creates an internal sense of order and desirable environment for occupants, visitors, and the general community,
b. preserves, respects and integrates existing natural features that contribute positively to the DocuSign Envelope ID: 9E4BEE6B-A0A9-403E-B42E-9BF3B16FCBD8 Item 6
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site and the historic character including historic resources of the area when relevant, c. is consistent with the context-based design criteria of the applicable zone district, d. provides harmonious transitions in scale, mass and character to adjacent land uses and land use designations,
e. enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas.

The project is consistent with Finding #2 because:

The design of the project is well ordered and provides a coherent plan that is readily understood in the site’s context. The site planning has been arranged to provide for a 24-foot street setback along the West Bayshore Road frontage, with existing and proposed landscaping providing a unifying design element. The design creates an internal sense of order by providing a well-landscaped public realm along the West Bayshore Road frontage, expansion of the bike lane, park access to Greer Park, and integrating the central park area as a focal point for the site. This integration provides a desirable environment for occupants and visitors. Natural features are appropriately integrated with the project and the proposed landscaping along the West Bayshore Road frontage serving as important elements that define the streetscape. The scale, mass and character of the building is appropriate for the existing context, which is surrounded by Greer Park and the buildings at 2800 West Bayshore Road. The site’s compliance with Finding #2.c. as well as the Performance Criteria under PAMC 18.23 is discussed in the tables below.

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

The Project includes a variety of high-quality materials conveying a contemporary architectural design.

Together these materials create a cohesive design that is compatible with the surrounding developments.

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

The design is appropriate to the function of the project in that retention of existing street trees softens the massing of the new building frontage along West Bayshore Road while relegating parking improvements to the rear of the site. The project presents a functional and accessible design for multiple modes of travel. Circulation from the street to the site would be improved by reducing the number of drive aisle cuts along West Bayshore Road, and providing a single, logical location for the main vehicle entrance. Pedestrian and bicycle access to the building entrances is significantly enhanced by the sidewalk improvements and right of way easement for the expanded bike lane that are included with the project as well as the new pedestrian ramp provided to Greer Park at the Southwest corner of the site. Bicycle parking is convenient and located inside the buildings and in the central park area.

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Adequate vehicle parking is located in the attached garages for each unit. The amount and arrangement of the central open space is appropriate to the design and the function of the site and encourages use by residents.

Finding #5: The landscape design complements and enhances the building design and its surroundings, is appropriate to the site’s functions, and utilizes to the extent practical, regional indigenous drought resistant plant material capable of providing desirable habitat that can be appropriately maintained.

Plant material is suitable and adaptable to the site, capable of being properly maintained, and is of a variety that is drought-tolerant and reduces consumption of water in its installation and maintenance.

The landscape plan maintains most of the existing street trees along the West Bayshore Road frontage, which will provide a visual buffer between the street and the proposed building. As the site is in a developed portion of the City, it is not considered prime habitat. However, the project would enhance the landscape elements on the site in the 24-foot special setback along West Bayshore Road, which would be the most likely location to support desirable habitat.

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

The project will meet the current Green Building Code requirements. Most of the proposed landscape palette has a low water use.

Context-Based Design Criteria PAMC 18.16.90

Massing and Building Facades Findings
Massing and building facades shall be designed to
create a residential scale in keeping Palo Alto
neighborhoods, and to provide a relationship with the
street(s).

This finding can be made in the affirmative in
that the proposed designs of each unit
utilizes varying materials, colors, and
articulation along the building facades to
help distinguish volumes, scale and mass.

The street facing units provide front entries
and walkways visible from the street that
help engage visually from the street
perspective and pedestrian walkways.

Low-Density Residential Transitions
Where new projects are built abutting existing lower -
scale residential development, care shall be taken to
respect the scale and privacy of neighboring properties.

This finding can be made in the affirmative in
that the adjacent sites are not residential
properties. In addition to that, the project
proposes to replace existing trees. These
new trees will serve to screen views from the
new units toward the adjacent school and
park.

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Project Open Space
Private and public open space shall be provided so that it is usable for the residents and visitors of a site.

This finding can be made in the affirmative in
that the proposed site design satisfies the
open space requirements of the R M-30
zoning district providing adequate private
and usable open space for residents and
guests to utilize. For additional recreational
space, direct access to Greer Park is provided
via a ramp at the rear of the project site.

Parking Design
Parking needs shall be accommodated but shall not be
allowed to overwhelm the character of the project or
detract from the pedestrian environment.

This finding can be made in the affirmative in
that the site planning and proposed parking
design ensure parking doe s not overwhelm
the project. Each unit is provided with a two-
car garage attached to the rear of the unit.

Additionally, there is landscape planting
adjacent to the garage locations that will
soften and break up the driveway areas with
opportunities for vertical tree elements and
ground cover to grow which will prevent the
structures from becoming visually detractive
from the internal pedestrian environment to
the project. Four additional guest surface
parking spaces are provided as well as a
drop-off space for ride-sharing services. The
project also incorporates a ramp to Greer
Park which provides quicker access to street
parking opportunities.

Large (multi-acre) Sites
Large (in excess of one acre) sites shall be designed so that street, block, and building patterns are consistent with those of the surrounding neighborhood.

This finding can be made in the affirmative in
that the project proposes a 24 -foot front
setback in accordance with the special
setback requirements. This is consistent with
the existing setback for the adjacent
property on 2800 West Bayshore Road.

Housing Variety and Units on Individual Lots
Multifamily projects may include a variety of unit types such as small -lot detached units, attached row
houses/townhouse, and cottage clusters in order to
This finding can be made in the affirmative in
that while the proposed project only includes
townhouses, each building introduces
varying articulation and building materials so
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achieve variety and create transitions to adjacent
existing development.

that the units do not appear homogeneous
and uninteresting. Additionally, each
building is separated by landscaping and
streets so they do not become overly large
and repetitive structures; therefore,
reducing their massing impact.

Sustainability and Green Building Design
Project design and materials to achieve sustainability
and green building design shall be incorporated into
the project. Green building design considers the
environment during design and construction. Green
building design aims for compatibility with the local
environment: to protect, respect and benefit from it. In general, sustainable buildings are energy efficient,
water conserving, durable and nontoxic, with high -
quality spaces and high recycled content materials.

This finding can be made in the affirmative in
that the proposed development will be
required to comply with the California Green
Building Code and the City of Palo Alto’s local
amendments; see PAMC Section 16.14.

Performance Criteria PAMC 18.23

18.23.020 Trash Disposal and Recycling Project Consistency Assure that development provides adequate and
accessible interior areas or exterior enclosures for the storage of trash and recyclable materials in
appropriate containers, and that trash disposal and
recycling areas are located as far from abutting
residences as is reasonably possible.

Each unit w ill be serviced by a 32 cubic foot
trash container, a 64 cubic foot compost
container, and a 96 cubic foot recycling
container. Each container has designated
storage spaces within the garage for each
unit. The site will also be serviced weekly by
GreenWaste waste hauler who will collect
the waste bins in front of each units. This
conforms with the requirements in PAMC

5.20 and 18.23.020.

18.23.030 Lighting
To minimize the visual impacts of lighting on abutting
or nearby residential sites and from adjacent
roadways.

There are no abutting residential sites to this
property. Along property lines that face
towards the school on 2800 W. Bayshore
Road and residences across from Greer Park,
the foot candle will not exceed 0.5 at the
property line.

18.23.040 Late Night Uses and Activities
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The purpose is to restrict retail or service commercial businesses abutting (either directly or across the
street) or within 50 feet of residentially zoned
properties or properties with existing residential uses located within nonresidential zones, with operations
or activities between the hours of 10:00 p.m. and
6:00 a.m. Operations subject to this code may include,
but are not limited to, deliveries, parking lot and
sidewalk cleaning, and/or clean up or set up
operations, but does not include garbage pick up.

The site is not a retail or commercial business
and would therefore not be subject to this
requirement.

18.23.050 Visual, Screening and Landscaping
Privacy of abutting residential properties or
properties with existing residential uses located within nonresidential zones (residential properties) should
be protected by screening from public view all
mechanical equipment and service areas. Landscaping
should be used to integrate a project design into the
surrounding neighborhood, and to provide privacy
screening between properties where appropriate.

The landscape plans seek to replace trees on
site in accordance with Tree Technical
Manual and No Net Loss of Canopy policies.

When mature, these new trees will provide
screening for the site between the adjacent
school and residences across from Greer
Park. The applicant also proposes to screen
all AC units for each unit as shown on L2.1.

18.23.060 Noise and Vibration
The requirements and guidelines regarding noise and
vibration impacts are intended to protect residentially zoned properties or properties with existing
residential uses located within nonresidential zones
(residential properties) from excessive and
unnecessary noises and/or vibrations from any
sources in abutting industrial or commercially zoned
properties. Design of new projects should reduce
noise from parking, loading, and refuse storage areas
and from heating, ventilation, air conditioning
apparatus, and other machinery on nearby residential
properties. New equipment, whether mounted on the
exterior of the building or located interior to a
building, which requires only a building permit, shall
also be subject to these requirements.

The applicant has provided a noise study that
identifies measures they will implement to
reduce the noise and vibration impacts
during construction. This document has been
incorporated into the environmental
documents. After construction , noise will
primarily be generated from the AC units
associated with each unit. An updated noise
report will be required prior to Building
Permit issuance, which staff will review in
accordance with the requirements in PAMC

9.10, when the models for the AC units will
be chosen.

18.23.070 Parking
The visual impact of parking shall be minimized on
adjacent residentially zoned properties or properties
with existing residential uses located within
nonresidential zones.

All parking for the units on site are proposed
in two -car garages on the ground floor of
each unit. No garage is proposed to face
towards West Bayshore Road or any other
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property. There are four additional guest
parking spaces provided on-site, in excess of
the code requirements, as well as a drop -off
space for ride-sharing services.

18.23.080 V ehicular, Pedestrian and Bicycle Site
Access

The guidelines regarding site access impacts are
intended to minimize conflicts between residential
vehicular, pedestrian, and bicycle uses and more
intensive traffic associated with commercial and
industrial districts, and to facilitate pedestrian and
bicycle connections through and adjacent to the
project site.

As a part of the project, the applicant has
proposed an easement on their property in
order to expand the existing bike lanes on
West Bayshore Road; which will expand bike
services within the area for those traveling
along West Bayshore Road. Vehicle access
and exit to this site is concentrated through a
single driveway which prevents vehicles from
spilling out onto the street at multiple points
which c ould cause conflicts with existing
traffic patterns. Additionally, the applicant
has proposed a pedestrian ramp at the
southwestern corner of the lot to connect
the site to Greer Park. This provides easier
access to and from the site for residents and
guests.

18.23.090 Air Quality
The requirements for air quality are intended to
buffer residential uses from potential sources of odor
and/or toxic air contaminants.

There are no adjacent manufacturing or
industrial uses to this site that would expose
residents to potential sources of odor and/or
toxic air contaminants. During construction,
the applicant will be required to follow Best
Management Practices (BMP) to reduce dust
or other contaminants from spilling over to
adjacent properties.

18.23.100 Hazardous Materials
In accordance with Titles 15 and 17 of the Palo Alto
Municipal Code, minimize the potential hazards of
any use on a development site that will entail the
storage, use or handling of hazardous materials
(including hazardous wastes) on-site in excess of the
exempt quantities prescribed in Health and Safety
Code Division 20, Chapter 6.95, and Title 15 of this
code.

The applicant is not proposing to store any
hazardous materials or waste on site. The
hazardous materials that will likely be stored
on site are normal cleaning products
associated with residential uses by residents.

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SECTION 5. Conditional Use Permit Findings

In order to make a recommendation of approval, the project must comply with the following Findings for Conditional Use Permit approval as required in Chapter 18.76.010 of the PAMC.

Finding #1: Not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience;

As proposed, the application conforms to all requirements in the zoning code except for the allowed floor area ratio for RM-30 lots. The applicant has proposed the use of a development concession in accordance with state density bonus law and PAMC 18.15.090 in order to receive the additional floor area to support their project. As a part of the project, the applicant will be placing fill on the site in order to raise up the proposed units in accordance with the AE 10.5 flood zone requirements. This will help protect the new units from inundation during a 100-year flood plain event.

In addition to this, the project will result in a reduction of vehicle trips to the site compared with the existing office use. As benefits to the City and the future residents, the applicant has proposed expanding the City’s bike lane along West Bayshore Road, including a pedestrian connection from the site to Greer Park, and has proposed a sound wall to reduce noise impacts from the 101 Highway across from the property.

The project qualifies for a Class 32 CEQA exemption and will not create adverse impacts on the environment that would be detrimental to the public health, safety, general welfare, or convenience of the public.

Finding #2: Be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of this title (Zoning).

Residential units are conditionally permitted in Research, Office, and Limited Manufacturing districts.

The site is well situated for a residential development given its proximity to Greer Park and the adjacent pre-school and day care facilities. As noted in Finding #1 in the Architectural Review findings, the project conforms to the Comprehensive Plan goals and policies for the site

SECTION 6. Concession Request Findings

In order to make a recommendation of approval, the project must comply with the following Findings (i – vi) for granting a Density Bonus, Incentive, Concession, Waiver, Modification or revised parking standard as required in Chapter 18.15.090(a) of the PAMC:

Finding (i): The development is eligible for the density bonus and any concessions, waivers, modifications, or revised parking standards requested.

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In order to qualify for a density bonus, concession, waiver, modification, or revised parking standard under state law, the applicant must propose at least 10% affordable housing on site. The City’s BMR regulations under PAMC 16.65 require a minimum of 15% of the proposed units be affordable for sites of less than five acres. The project proposes a 48-unit townhome development and seven (7) of those units will be sold at moderate income levels with 0.2 units paid through an in-lieu fee. As a result, the project is eligible to request one concession from the City.

Finding (ii): Any requested concession or incentive will result in identifiable and actual cost reductions based upon the financial analysis and documentation provided. The city finds that the concessions and incentives included in Section 18.15.050(c) will result in identifiable and actual cost reductions.

The project proposes a 48-unit townhome development and requests a Floor Area Ratio (FAR) of 1.137 in order to develop their proposal. Staff has performed a peer review of the applicant’s proforma with the City's consultant, Keyser Marston, and agree that the proposed project Finding (iii): If the density bonus is based all or in part on donation of land, a finding that all the requirements included in Government Code Section 65915(g) have been met.

The project is not the recipient of a donation of land; therefore, this finding is not applicable.

Finding (iv): If the density bonus, concession or incentive is based all or in part on the inclusion of a childcare facility, a finding that all the requirements included in Government Code Section 65915(h) have been met.

The project does not include a concession request based on the inclusion of a childcare facility; therefore, this finding is not applicable.

Finding (v): If the concession or incentive includes mixed-use development, a finding that all the requirements included in Government Code Section 65915(k)(2) have been met.

The project does not include mixed-use development; therefore, this finding is not applicable.

Finding (vi): If a waiver or modification is requested, a finding that the development standards for which the waiver is requested would have the effect of physically precluding the construction of the development with the density bonus and concessions permitted.

The project does not request any waivers or modifications; therefore, this finding is not applicable. The request for increased FAR is a concession, as analyzed in Finding (ii).

SECTION 7. Tentative Map Approval Granted

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Tentative Map Approval is filed and processed in accordance with PAMC Section 21.12.090 and granted by the City Council under PAMC Sections 21.12 and 21.20 and the California Government Code Section 66474, subject to the conditions of approval herein of this Record.

SECTION 8. Architectural Review Approval Granted

The Architectural Review is filed and processed in accordance with 18.77.070 and granted by the City Council under PAMC Section 18.77.050, subject to the conditions of approval herein of this Record.

SECTION 9. Conditional Use Permit Approval Granted

The Conditional Use Permit is filed and processed in accordance with 18.76.010 and granted by the City Council under PAMC Section 18.77.060, subject to the conditions of approval herein of this Record.

SECTION 10. Concession Request Approval Granted

The Concession Request is filed and processed in accordance with 18.15.080 and granted by the City Council under PAMC Section 18.15.090(a), subject to the conditions of approval herein of this Record.

SECTION 11. Final Map

The Final Map submitted for review and approval by the City Council shall be in substantial conformance with the Tentative Map prepared by CBG, Inc. titled “Vesting Tentative Map for Condominium Purposes,” consisting of 14 pages, stamped as received May 11, 2022, except as modified to incorporate the conditions of approval contained herein of this record . A copy of the Tentative Map is on file with the Department of Planning & Development Services , Current Planning Division. Prior to the expiration of the Tentative Map approval, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Final Map, as specified in Chapter 21.08, to be prepared in conformance with the Tentative Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Title 21 and submitted to the City Engineer (PAMC Section 21.16.010[a]).

SECTION 12. Conditions of Approval (Vesting Tentative Map)

PLANNING DIVISION

1. PROJECT PLANS. The Vesting Tentative Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map titled “Vesting Tentative Map for Condominium Purposes”, dated May 11, 2021, except as modified to incorporate the conditions of this approval.

2. FINAL MAP COVER PAGE. At such time as the Final Map is filed, the cover page shall include the name and title of the Director of Planning and Development Services.

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3. The following conditions were added to the conditions of approval during the June 20, 2022 hearing:
a. The applicant agrees to record in their CC&Rs that the future residents of the site will not be able to participate in any future Residential Parking Permit program to the extent that it restricts parking on Colorado Avenue west of Simkins Court. b. The private streets shown on the plans as Street A, B, C, and D shall be named Ellen, Josephine, Juana, and Esther, respectively.

4. STANDARD CC&R REQUIREMENTS. Section 16.38 of Palo Alto’s Municipal Code provides that all condominium and other “community housing projects” shall submit Covenants, Conditions and Restrictions (CC&R’s) to the City Attorney for approval before issuance of the Final Map. The City Attorney has developed the following standard covenants which shall be included in all CC&R’s.

a. PROPERTY SHALL COMPLY WITH CITY ZONING ORDINANCES. The property, including all common areas, private streets and, parks within the property, shall at all times comply with the City’s Zoning Code and shall not be used for any purpose other than as permitted in the City Zoning Code.

b. MODIFICATIONS TO PROPERTY. Any alterations, modifications, or other improvements to the property shall comply with all applicable City Codes.

c. MAINTENANACE AND LANDSCAPING OF COMMON AREAS. The Association is responsible for maintenance and landscaping of all parts of the community housing project which are held in common and such maintenance shall be performed to the standard of maintenance prevalent in the neighborhood. (See PAMC Section 16.38.030(a)).

d. TERMINATION OF MANAGER OR MAINTENANCE CONTRACTS. The association may terminate the contract of any person or organization engaged by the developer to perform management or maintenance duties three months after the association assumes control of the community housing project or any time thereafter. (See PAMC Section 16.38.030(b).) e. PROTECTION OF STORM WATER FACILITIES. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall alter or modify any storm water facilities in any way including but not limited to placing, maintaining, constructing, or planting any improvements, landscaping or other items, including without limitation decks, stairs, walls, irrigation systems, trees, or any vegetation on any storm water facilities.

f. TRASH DISPOSAL AND RECYCLING AREAS SHALL COMPLY WITH CITY ORDINANCES. All trash disposal and recycling areas shall be kept in a clean and sanitary condition and shall comply DocuSign Envelope ID: 9E4BEE6B-A0A9-403E-B42E-9BF3B16FCBD8 Item 6
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with all applicable City Ordinances.

g. PROHIBITION AGAINST AIR AND WATER POLLUTION. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall use the property in any way which emits pollution into the atmosphere in excess of environmental standards set forth by City, State, and Federal laws, ordinances, and regulations.

Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall discharge garbage, trash, waste, or any other substance or materials of any kind into any private or public sewer or waterway on the property in violation of any regulations of any private or public body having jurisdiction over such matters.

h. AMENDMENTS TO ORGANIZATION DOCUMENTS REQUIRE CITY APPROVAL. Any amendments or modifications to the organizational documents shall be submitted to the city attorney for approval. No amendment or modification to the organizational documents shall be effective without prior written consent of the city attorney.

i. CITY’S RIGHT TO ENFORCE COVENANTS AND RESTRICTIONS. The City is hereby granted the right, but in no event the duty, to enforce the covenants and restrictions set forth in this section of the organizational documents. The association shall recognize that it has the primary responsibility for enforcement of the organizational documents and unequivocally guarantees to institute and expeditiously prosecute any required legal action to obtain compliance with all provisions set forth in the organizational documents.

j. NO WAIVER OF CITY’S RIGHTS. No failure of the City to enforce any of the covenants or restrictions contained in the organizational documents will in any event render them ineffective.

k. CITY’S REMEDIES TO CURE A BREACH OR VIOLATION. Remedies available to the City to cure any breach or violation of the organizational documents shall be cumulative to any other provisions of law. The City’s failure to exercise any remedy provided for in the organizational documents shall not, under any circumstances, be construed as a waiver of the remedy.

l. SEVERABILITY. Invalidation of any one of the City’s required covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect.

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5. FINAL MAP EXPIRATION. A Final Map, in conformance with the approved Vesting Tentative Map, all requirements of the Subdivision Ordinance (PAMC Section 21.16), and to the satisfaction of the City of Palo Alto and its representatives, shall be filed with the Planning Division and the Public Works Engineering Division within two years of the Vesting Tentative Map approval date or this approval will expire, pending extension.

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

PUBLIC WORKS ENGINEERING

7. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS: Applicant shall be advised that all forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link: https://bit.ly/2QosO9A.

8. IMPROVEMENT PLANS: The applicant shall arrange a meeting with the Public Works Engineering, Water/Gas/Wastewater Engineering, Electric Utilities Engineering, Planning, and Transportation Divisions and the Fire Department after Council approval of the Vesting Tentative Map to discuss the on-site and off-site improvements that will be required. The improvement plans must then be reviewed and approved by the City prior to submittal of the parcel or final map. ADVISORY -- The applicant shall provide a detailed itemized stamped and signed engineer's estimate for all off-site public improvements which will be reviewed to determine the security amount.

9. SUBDIVISION IMPROVEMENT AGREEMENT: The applicant shall execute a Subdivision Improvement Agreement and provide improvement securities (Bonds) for all proposed public improvements. The Agreement shall be executed prior to map recordation or issuance of any permits for construction, onsite and offsite. ADVISORY -- The applicant shall provide a detailed itemized stamped and signed engineer's estimate for all off-site public improvements which will be reviewed to determine the security amount.

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

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

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

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

12. RETAINING WALLS: The grading plan shall clearly indicate all site retaining walls needed along the project to accommodate the fill. These walls shall be located completely onsite, and at a minimum 5-feet from the existing street trees to be protected.

13. FLOOD ZONE: This project is in a FEMA Special Flood Hazard Area and shall comply with the requirements in Palo Alto Municipal Code Chapter 16.52 and the California Residential Code Section 322 (CRC 322).

14. CLOMR-F: Evidence that this document has been executed shall be provided prior to building permit issuance.

15. FINAL MAP THIRD-PARTY REVIEW: The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein.

16. STREETWORK PERMIT: The applicant shall obtain a Streetwork Permit from the Department of Public Works for all offsite and public improvements. Note that the engineer’s estimate is directly related to this permit’s scope of work.

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

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

19. CALTRANS PERMIT FOR SOUNDWALL: If any portion of the proposed work is within Caltrans right-of- way a permit must be obtained from the applicable agency. If a permit is required, evidence of the outside agency’s permit approval shall be submitted to the Planning and Public Works Departments prior to issuance of any Building or Streetwork/Encroachment permits.

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

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

22. C.3 THIRD-PARTY CERTIFICATION: Applicant shall provide certification from a qualified third-party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11.

The third-party reviewer shall provide the following documents to Public Works prior to building permit approval:
a. Stamped and signed C.3 data form (September 2019 version) from SCVURPPP. https://bit.ly/3J3gtxJ
b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11.

23. C.3 STORMWATER AGREEMENT: The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit approval.
a. Note: Any revisions to the C.3 stormwater pollution prevention measures that are necessary to facilitate installation of said measures will be addressed in the agreement and the accompanying exhibits, executed by the City, and recorded with the County.

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

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

26. IMPERVIOUS SURFACE AREA: The project will be creating or replacing 500 square feet or more of DocuSign Envelope ID: 9E4BEE6B-A0A9-403E-B42E-9BF3B16FCBD8 Item 6
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impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. To determine the impervious surface area that is being disturbed, provide the quantity on the site plan.

27. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE:
a. Storm Drain Logos: The applicant is required to paint “No Dumping/Flows to Matadero Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan. b. Record Drawings: At the conclusion of the project applicant shall provide digital as- built/record drawings of all improvements constructed in the public right-of-way or easements in which the City owns an interest.

HOUSING

The project as proposed includes 48 residential ownership units. The project is subject to the Below Market Rate (BMR) requirement as set forth by Palo Alto Municipal Code (PAMC) 16.65.060.

28. When the BMR requirement results in a fractional unit, an in-lieu payment to the Residential Housing Fund may be made for the fractional unit instead of providing an actual BMR unit, except that larger projects of 30 or more units must provide a whole BMR unit for any fractional unit of one-half (0.50) or larger. The proposed project – 48 ownership units – is subject to a BMR requirement of 7.2 units and is proposing seven units, with 0.2 paid through an in-lieu fee. All of the units will be made affordable to moderate income households. Payment of the fractional in-lieu is required prior to building permit issuance.

29. All BMR units constructed shall be in conformance with the City’s BMR Program rules and regulations such as the unit mix and sizes of the BMR units should reflect the unit mix and sizes of the market rate units. Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement.

30. A BMR Agreement in a form acceptable to the City Attorney for the seven BMR units shall be executed and recorded prior to final map approval or building permit issuance, whichever occurs first. Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement.

SECTION 13. Conditions of Approval. (Architectural Review)

PLANNING DIVISION
DocuSign Envelope ID: 9E4BEE6B-A0A9-403E-B42E-9BF3B16FCBD8 Item 6
Attachment B - Signed
Record of Land Use
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Item 6: Staff Report
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1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, “2850 West Bayshore Road” dated May 27, 2022 on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval.

2. BUILDING PERMIT. Apply for a building permit and meet all conditions of the departments listed in this letter.

3. BUILDING PERMIT PLAN SET. The ARB approval letter including all Department conditions of approval for the project shall be printed on the plans submitted for building permit.

4. The following conditions were added to the conditions of approval during the June 20, 2022 hearing:
a. The applicant agrees to record in their CC&Rs that the future residents of the site will not be able to participate in any future Residential Parking Permit program to the extent that it restricts parking on Colorado Avenue west of Simkins Court. b. The private streets shown on the plans as Street A, B, C, and D shall be named Ellen, Josephine, Juana, and Esther, respectively.

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

6. LANDSCAPE MAINTENANCE. All existing and proposed landscape material shall be well maintained and replaced if the plant material dies or if the irrigation equipment fails. Planters shall not drain onto sidewalk, ground, or public right of ways.

7. DENSITY BONUS CONCESSION: Staff has found the project to be in compliance with all of the City’s development standards. In accordance with State Density Bonus Law and PAMC Section 18.15.090, a housing project providing 15 percent of the units, as affordable to lower income households, is eligible for one concession. With the following concessions, staff finds the project in compliance with the City’s development standards. The applicant has shown the following concessions will reduce the per unit cost of the development as noted in the Density Bonus Analysis: 2850 West Bayshore Road:
a. Floor Area Ratio - Exceed 0.60:1 FAR limitation with a proposed FAR of 1.137:1

8. ESTIMATED IMPACT FEE: Development Impact Fees, currently estimated in the amount of $2,495,303.78, per PAMC 16.58, shall be paid prior to the issuance of the related building permit.

These fees are subject to increase through annual increases every August, after City Council adoption of the new municipal fee schedule, as well as the inclusion of the Public Art fee.

DocuSign Envelope ID: 9E4BEE6B-A0A9-403E-B42E-9BF3B16FCBD8 Item 6
Attachment B - Signed
Record of Land Use
Action

Item 6: Staff Report
Pg.
27 Packet Pg. 117 of 384

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Palo Alto City CouncilApril 3, 2023

Palo Alto City Council
April 3, 2023