CITY COUNCIL
Special Meeting
Monday, May 15, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference 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
This meeting is being held in honor of Older Americans Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:40 PM)
1. Proclamation Recognizing National Police Week – May 14‐20, 2023 and National Peace Officers’ Memorial Day – May 15, 2023
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:40 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:15 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:15 ‐ 7:15 PM)
2. Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals” Late Packet Report
CONSENT CALENDAR (7:15 ‐ 7:20 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
3. Approval of Minutes from May 1, 2023 Meeting
4. Approval of a three‐year General Services contract with Johnson Controls Fire Protection, totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services; and Approval of a Budget Amendment in the General Fund.
5. QUASI‐JUDICIAL. 151 S California Avenue {22PLN‐00363}: Ratification of Director's Approval of Waiver from the Retail Preservation Ordinance for an Alternative Viable Use to Allow for a Medical Office Use to Occupy a 3,500 Square Foot Tenant Space. Zone District: CC(2). Environmental Assessment: Exempt from CEQA in Accordance with Guidelines Section 15061(b)(3) and 15301.
6. Approval of a Design‐Build Contract with Parking Guidance Systems, LLC in the Amount of $4,180,217 with Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $418,022 for the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment Project, Capital Improvement Program Project PL‐15002; and Approval of a Budget Amendment in the Capital Improvement Fund; CEQA status – exempt under CEQA Guidelines Section 15301(c)
7. Adoption of a Resolution Authorizing the City Manager or their Designee to sign Grant‐ Related Documents with Caltrans for the Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Program Project PE‐12011; CEQA: Environmental Impact Report for the Newell Road Bridge (Resolution No. 9889)
8. Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract No.
C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108, for additional Professional Services for the Public Safety Building Capital Improvement Program Project (PE‐15001); CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772)
9. Amendment No. 5 to the Agreement between the City of Palo Alto and the Friends of the Junior Museum and Zoo for Mutual Cooperation and Support to Extend the Agreement through June 2024 and Accept a $75,000 Grant for a Community Engagement Specialist; CEQA status – not a project
10. Approval of Professional Services Agreement Contract Number S23184570 with Foster & Foster Consulting Actuaries, Inc. in an Amount Not to Exceed $147,180 to Provide Actuary Services for a Period of Five Years: CEQA Status – Not a Project
11. Authorization for approval of a Blanket Purchase Order with Granite Rock Company in the Amount of $500,000 Annually for a Three‐Year Term, beginning July 1, 2023 through June 30, 2026, for a Total Not‐to‐Exceed Amount of $1,500,000 for Hot Mix Asphalt Materials for Public Works and Utilities Departments; CEQA Status – Not a Project CITY MANAGER COMMENTS (7:20 ‐ 7:40 PM)
ACTION ITEMS (Item 12: 7:40 ‐ 8:40 PM; Item 13: 8:40 ‐ 9:40 PM ; Item 14: 9:40 ‐ 11:00 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
12. PUBLIC HEARING: Adoption of a Resolution Providing that the City will Not Levy Assessments for the Downtown Business Improvement District for FY 2024.
13. Update, Discussion, and Potential Direction regarding State and Federal Legislation
14. PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment: Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305.
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee May 16, 2023 CANCELED
City Schools Liaison Committee May 18, 2023 CANCELED
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
2 Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals”; CEQA status – Not a Project Late Packet Report
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
1 Special Meeting May 15, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.
CITY COUNCIL
Special Meeting
Monday, May 15, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference 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
This meeting is being held in honor of Older Americans Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:40 PM)
1. Proclamation Recognizing National Police Week – May 14‐20, 2023 and National Peace Officers’ Memorial Day – May 15, 2023
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:40 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:15 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:15 ‐ 7:15 PM)
2. Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals” Late Packet Report
CONSENT CALENDAR (7:15 ‐ 7:20 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
3. Approval of Minutes from May 1, 2023 Meeting
4. Approval of a three‐year General Services contract with Johnson Controls Fire Protection, totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services; and Approval of a Budget Amendment in the General Fund.
5. QUASI‐JUDICIAL. 151 S California Avenue {22PLN‐00363}: Ratification of Director's Approval of Waiver from the Retail Preservation Ordinance for an Alternative Viable Use to Allow for a Medical Office Use to Occupy a 3,500 Square Foot Tenant Space. Zone District: CC(2). Environmental Assessment: Exempt from CEQA in Accordance with Guidelines Section 15061(b)(3) and 15301.
6. Approval of a Design‐Build Contract with Parking Guidance Systems, LLC in the Amount of $4,180,217 with Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $418,022 for the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment Project, Capital Improvement Program Project PL‐15002; and Approval of a Budget Amendment in the Capital Improvement Fund; CEQA status – exempt under CEQA Guidelines Section 15301(c)
7. Adoption of a Resolution Authorizing the City Manager or their Designee to sign Grant‐ Related Documents with Caltrans for the Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Program Project PE‐12011; CEQA: Environmental Impact Report for the Newell Road Bridge (Resolution No. 9889)
8. Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract No.
C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108, for additional Professional Services for the Public Safety Building Capital Improvement Program Project (PE‐15001); CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772)
9. Amendment No. 5 to the Agreement between the City of Palo Alto and the Friends of the Junior Museum and Zoo for Mutual Cooperation and Support to Extend the Agreement through June 2024 and Accept a $75,000 Grant for a Community Engagement Specialist; CEQA status – not a project
10. Approval of Professional Services Agreement Contract Number S23184570 with Foster & Foster Consulting Actuaries, Inc. in an Amount Not to Exceed $147,180 to Provide Actuary Services for a Period of Five Years: CEQA Status – Not a Project
11. Authorization for approval of a Blanket Purchase Order with Granite Rock Company in the Amount of $500,000 Annually for a Three‐Year Term, beginning July 1, 2023 through June 30, 2026, for a Total Not‐to‐Exceed Amount of $1,500,000 for Hot Mix Asphalt Materials for Public Works and Utilities Departments; CEQA Status – Not a Project CITY MANAGER COMMENTS (7:20 ‐ 7:40 PM)
ACTION ITEMS (Item 12: 7:40 ‐ 8:40 PM; Item 13: 8:40 ‐ 9:40 PM ; Item 14: 9:40 ‐ 11:00 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
12. PUBLIC HEARING: Adoption of a Resolution Providing that the City will Not Levy Assessments for the Downtown Business Improvement District for FY 2024.
13. Update, Discussion, and Potential Direction regarding State and Federal Legislation
14. PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment: Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305.
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee May 16, 2023 CANCELED
City Schools Liaison Committee May 18, 2023 CANCELED
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
2 Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals”; CEQA status – Not a Project Late Packet Report
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
2 Special Meeting May 15, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.
CITY COUNCIL
Special Meeting
Monday, May 15, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference 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
This meeting is being held in honor of Older Americans Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:40 PM)
1. Proclamation Recognizing National Police Week – May 14‐20, 2023 and National Peace Officers’ Memorial Day – May 15, 2023
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:40 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:15 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:15 ‐ 7:15 PM)
2. Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals” Late Packet Report
CONSENT CALENDAR (7:15 ‐ 7:20 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
3. Approval of Minutes from May 1, 2023 Meeting
4. Approval of a three‐year General Services contract with Johnson Controls Fire Protection, totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services; and Approval of a Budget Amendment in the General Fund.
5. QUASI‐JUDICIAL. 151 S California Avenue {22PLN‐00363}: Ratification of Director's Approval of Waiver from the Retail Preservation Ordinance for an Alternative Viable Use to Allow for a Medical Office Use to Occupy a 3,500 Square Foot Tenant Space. Zone District: CC(2). Environmental Assessment: Exempt from CEQA in Accordance with Guidelines Section 15061(b)(3) and 15301.
6. Approval of a Design‐Build Contract with Parking Guidance Systems, LLC in the Amount of $4,180,217 with Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $418,022 for the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment Project, Capital Improvement Program Project PL‐15002; and Approval of a Budget Amendment in the Capital Improvement Fund; CEQA status – exempt under CEQA Guidelines Section 15301(c)
7. Adoption of a Resolution Authorizing the City Manager or their Designee to sign Grant‐ Related Documents with Caltrans for the Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Program Project PE‐12011; CEQA: Environmental Impact Report for the Newell Road Bridge (Resolution No. 9889)
8. Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract No.
C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108, for additional Professional Services for the Public Safety Building Capital Improvement Program Project (PE‐15001); CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772)
9. Amendment No. 5 to the Agreement between the City of Palo Alto and the Friends of the Junior Museum and Zoo for Mutual Cooperation and Support to Extend the Agreement through June 2024 and Accept a $75,000 Grant for a Community Engagement Specialist; CEQA status – not a project
10. Approval of Professional Services Agreement Contract Number S23184570 with Foster & Foster Consulting Actuaries, Inc. in an Amount Not to Exceed $147,180 to Provide Actuary Services for a Period of Five Years: CEQA Status – Not a Project
11. Authorization for approval of a Blanket Purchase Order with Granite Rock Company in the Amount of $500,000 Annually for a Three‐Year Term, beginning July 1, 2023 through June 30, 2026, for a Total Not‐to‐Exceed Amount of $1,500,000 for Hot Mix Asphalt Materials for Public Works and Utilities Departments; CEQA Status – Not a Project CITY MANAGER COMMENTS (7:20 ‐ 7:40 PM)
ACTION ITEMS (Item 12: 7:40 ‐ 8:40 PM; Item 13: 8:40 ‐ 9:40 PM ; Item 14: 9:40 ‐ 11:00 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
12. PUBLIC HEARING: Adoption of a Resolution Providing that the City will Not Levy Assessments for the Downtown Business Improvement District for FY 2024.
13. Update, Discussion, and Potential Direction regarding State and Federal Legislation
14. PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment: Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305.
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee May 16, 2023 CANCELED
City Schools Liaison Committee May 18, 2023 CANCELED
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
2 Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals”; CEQA status – Not a Project Late Packet Report
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
3 Special Meeting May 15, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.
CITY COUNCIL
Special Meeting
Monday, May 15, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference 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
This meeting is being held in honor of Older Americans Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:40 PM)
1. Proclamation Recognizing National Police Week – May 14‐20, 2023 and National Peace Officers’ Memorial Day – May 15, 2023
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:40 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:15 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:15 ‐ 7:15 PM)
2. Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals” Late Packet Report
CONSENT CALENDAR (7:15 ‐ 7:20 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
3. Approval of Minutes from May 1, 2023 Meeting
4. Approval of a three‐year General Services contract with Johnson Controls Fire Protection, totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services; and Approval of a Budget Amendment in the General Fund.
5. QUASI‐JUDICIAL. 151 S California Avenue {22PLN‐00363}: Ratification of Director's Approval of Waiver from the Retail Preservation Ordinance for an Alternative Viable Use to Allow for a Medical Office Use to Occupy a 3,500 Square Foot Tenant Space. Zone District: CC(2). Environmental Assessment: Exempt from CEQA in Accordance with Guidelines Section 15061(b)(3) and 15301.
6. Approval of a Design‐Build Contract with Parking Guidance Systems, LLC in the Amount of $4,180,217 with Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $418,022 for the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment Project, Capital Improvement Program Project PL‐15002; and Approval of a Budget Amendment in the Capital Improvement Fund; CEQA status – exempt under CEQA Guidelines Section 15301(c)
7. Adoption of a Resolution Authorizing the City Manager or their Designee to sign Grant‐ Related Documents with Caltrans for the Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Program Project PE‐12011; CEQA: Environmental Impact Report for the Newell Road Bridge (Resolution No. 9889)
8. Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract No.
C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108, for additional Professional Services for the Public Safety Building Capital Improvement Program Project (PE‐15001); CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772)
9. Amendment No. 5 to the Agreement between the City of Palo Alto and the Friends of the Junior Museum and Zoo for Mutual Cooperation and Support to Extend the Agreement through June 2024 and Accept a $75,000 Grant for a Community Engagement Specialist; CEQA status – not a project
10. Approval of Professional Services Agreement Contract Number S23184570 with Foster & Foster Consulting Actuaries, Inc. in an Amount Not to Exceed $147,180 to Provide Actuary Services for a Period of Five Years: CEQA Status – Not a Project
11. Authorization for approval of a Blanket Purchase Order with Granite Rock Company in the Amount of $500,000 Annually for a Three‐Year Term, beginning July 1, 2023 through June 30, 2026, for a Total Not‐to‐Exceed Amount of $1,500,000 for Hot Mix Asphalt Materials for Public Works and Utilities Departments; CEQA Status – Not a Project CITY MANAGER COMMENTS (7:20 ‐ 7:40 PM)
ACTION ITEMS (Item 12: 7:40 ‐ 8:40 PM; Item 13: 8:40 ‐ 9:40 PM ; Item 14: 9:40 ‐ 11:00 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
12. PUBLIC HEARING: Adoption of a Resolution Providing that the City will Not Levy Assessments for the Downtown Business Improvement District for FY 2024.
13. Update, Discussion, and Potential Direction regarding State and Federal Legislation
14. PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment: Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305.
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee May 16, 2023 CANCELED
City Schools Liaison Committee May 18, 2023 CANCELED
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
2 Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals”; CEQA status – Not a Project Late Packet Report
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
4 Special Meeting May 15, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.
CITY COUNCIL
Special Meeting
Monday, May 15, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference 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
This meeting is being held in honor of Older Americans Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:40 PM)
1. Proclamation Recognizing National Police Week – May 14‐20, 2023 and National Peace Officers’ Memorial Day – May 15, 2023
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:40 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:15 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:15 ‐ 7:15 PM)
2. Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals” Late Packet Report
CONSENT CALENDAR (7:15 ‐ 7:20 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
3. Approval of Minutes from May 1, 2023 Meeting
4. Approval of a three‐year General Services contract with Johnson Controls Fire Protection, totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services; and Approval of a Budget Amendment in the General Fund.
5. QUASI‐JUDICIAL. 151 S California Avenue {22PLN‐00363}: Ratification of Director's Approval of Waiver from the Retail Preservation Ordinance for an Alternative Viable Use to Allow for a Medical Office Use to Occupy a 3,500 Square Foot Tenant Space. Zone District: CC(2). Environmental Assessment: Exempt from CEQA in Accordance with Guidelines Section 15061(b)(3) and 15301.
6. Approval of a Design‐Build Contract with Parking Guidance Systems, LLC in the Amount of $4,180,217 with Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $418,022 for the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment Project, Capital Improvement Program Project PL‐15002; and Approval of a Budget Amendment in the Capital Improvement Fund; CEQA status – exempt under CEQA Guidelines Section 15301(c)
7. Adoption of a Resolution Authorizing the City Manager or their Designee to sign Grant‐ Related Documents with Caltrans for the Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Program Project PE‐12011; CEQA: Environmental Impact Report for the Newell Road Bridge (Resolution No. 9889)
8. Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract No.
C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108, for additional Professional Services for the Public Safety Building Capital Improvement Program Project (PE‐15001); CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772)
9. Amendment No. 5 to the Agreement between the City of Palo Alto and the Friends of the Junior Museum and Zoo for Mutual Cooperation and Support to Extend the Agreement through June 2024 and Accept a $75,000 Grant for a Community Engagement Specialist; CEQA status – not a project
10. Approval of Professional Services Agreement Contract Number S23184570 with Foster & Foster Consulting Actuaries, Inc. in an Amount Not to Exceed $147,180 to Provide Actuary Services for a Period of Five Years: CEQA Status – Not a Project
11. Authorization for approval of a Blanket Purchase Order with Granite Rock Company in the Amount of $500,000 Annually for a Three‐Year Term, beginning July 1, 2023 through June 30, 2026, for a Total Not‐to‐Exceed Amount of $1,500,000 for Hot Mix Asphalt Materials for Public Works and Utilities Departments; CEQA Status – Not a Project CITY MANAGER COMMENTS (7:20 ‐ 7:40 PM)
ACTION ITEMS (Item 12: 7:40 ‐ 8:40 PM; Item 13: 8:40 ‐ 9:40 PM ; Item 14: 9:40 ‐ 11:00 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
12. PUBLIC HEARING: Adoption of a Resolution Providing that the City will Not Levy Assessments for the Downtown Business Improvement District for FY 2024.
13. Update, Discussion, and Potential Direction regarding State and Federal Legislation
14. PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment: Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305.
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee May 16, 2023 CANCELED
City Schools Liaison Committee May 18, 2023 CANCELED
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
2 Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals”; CEQA status – Not a Project Late Packet Report
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
5 Special Meeting May 15, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.
City Council
Staff Report
Report Type: INFORMATION REPORTS
Lead Department: Police
Meeting Date: May 15, 2023
Report #:2304-1340
TITLE
Proclamation Recognizing National Police Week – May 14-20, 2023 and National Peace Officers’ Memorial Day – May 15, 2023
ATTACHMENTS
Attachment A: Proclamation Recognizing National Police Week 2023 APPROVED BY:
Andrew Binder
Item 1
Item 1 Staff Report
Item 1: Staff Report
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Proclamation
__________________________
Lydia Kou
Mayor
National Police Week, May 14-20 and
National Peace Officers’ Memorial Day, May 15, 2023
WHEREAS, the United States Congress and President of the United States have designated May 15, 2023 as National Peace Officers’ Memorial Day and the week in which it falls as Police Week; and
WHEREAS, the members of the Palo Alto Police Department play an essential role in safeguarding the rights and freedoms of its citizens; and
WHEREAS, it is important that all citizens know and understand the problems, duties, and responsibilities of their police department, and that members of our police department recognize their duty to serve the people by safeguarding life and property, by protecting against violence or disorder, and by protecting the innocent against deception and the weak against oppression or intimidation; and
WHEREAS, the Palo Alto Police Department has grown to be a modern and progressive law enforcement agency which unceasingly provides a vital public service; and
WHEREAS, The City of Palo Alto asks all citizens to join in honoring the police officers, past and present, who by their faithful and loyal devotion to their responsibilities have rendered a dedicated service to their communities and, in doing so, have established for themselves an enviable and enduring reputation for preserving the rights and security of all citizens.
NOW, THEREFORE, I, Lydia Kou, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby proclaim the week of May 14-20, 2023 as Police Week and urge all citizens of Palo Alto to observe Saturday May 15, 2023 as Peace Officers’ Memorial Day in honor of those peace officers who, through their courageous deeds, have lost their lives or have become disabled in the performance of duty.
Presented: May 15, 2023
Item 1
Attachment A -
Proclamation Recognizing
National Police Week
2023
Item 1: Staff Report
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City Council
Staff Report
Report Type: STUDY SESSION
Lead Department: Community Services
Meeting Date: May 15, 2023
Report #:2305-1399
TITLE
Study Session to Discuss Next Steps Following Letter Received on March 13, 2023 from Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals” This report will be a special late packet release on Thursday, May 11, 2023.
APPROVED BY:
Kristen O'Kane
Item 2
Item 2 Staff Report
Item 2: Staff Report
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 15, 2023
Report #:2305-1395
TITLE
Approval of Minutes from May 1, 2023 Meeting
RECOMMENDATION
That the minutes be reviewed and approved.
ATTACHMENTS
Attachment A: May 1, 2023 Draft Action Minutes
APPROVED BY:
Lesley Milton
Item 3
Item 3 Staff Report
Item 3: Staff Report
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CITY COUNCIL
DRAFT ACTION MINUTES
Special Meeting
May 1, 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
Special Orders of the Day
1. Proclamation of May 2023 as Affordable Housing Month
2. Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission
First round of voting for Human Relations Commission two (2) full terms ending 3/31/2026 Katie Causey: Stone, Kou, Lauing, Veenker, Burt, Lythcott-Haims Miles Goodman: Veenker, Lythcott-Haims
Mary Kate Stimmler: Tanaka
Amy Hsieh: Stone, Tanaka, Kou, Lauing
Daryl Savage: Burt
• Candidate Katie Causey receiving 6 votes is appointed to a full-term expiring March 31, 2026.
• Candidate Amy Hsieh receiving 4 votes is appointed to a full-term expiring March 31, 2026.
First round of voting for Parks and Recreation Commission four (4) full terms ending 3/31/2026 Amanda Brown: Stone, Tanaka, Kou, Lauing, Burt, Lythcott-Haims, Veenker Bing Wei: Tanaka, Kou, Burt
Nanci Howe: Lythcott-Haims
Yudy Deng: Stone, Tanaka
Jeff LaMere: Veenker
Item 3
Attachment A - May 1,
2023 Draft Action
Minutes
Item 3: Staff Report
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DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 05/01/2023
Laura Granka: Tanaka, Lauing, Burt
Adriana Flores-Ragade:
Shani Kleinhaus: Stone, Kou, Lauing, Veenker
Sierra Peterson: Lythcott-Haims
Joy Oche: Stone, Kou, Lauing, Veenker, Burt, Lythcott-Haims
• Candidate Amanda Brown receiving 7 votes is appointed to a full-term expiring March 31, 2026.
• Candidate Shani Kleinhaus receiving 4 votes is appointed to a full-term expiring March 31, 2026
• Candidate Joy Oche receiving 6 votes is appointed to a full-term expiring March 31, 2026.
No other Candidate received four votes required to be appointed to the full-term expiring March 31, 2026. A second round of voting was required for the final opening.
Second round of voting for Parks and Recreation Commission one (1) full term ending 3/31/2026 Bing Wei: Kou, Tanaka, Lythcott-Haims
Nanci Howe:
Yudy Deng: Stone, Veenker
Jeff LaMere:
Laura Granka: Burt, Lauing
Adriana Flores-Ragade:
Sierra Peterson:
No other Candidate received a majority of votes required to be appointed to the full-term expiring March 31, 2026. A third round of voting is required for the final opening.
First round of voting for Human Relations Commission t wo (2) terms ending 3/31/2024 per ordinance 5583
• Miles Goodman: Stone, Veenker, Tanaka, Lythcott-Haims • Mary Kate Stimmler: Kou, Burt, Tanaka, Lythcott-Haims, Lauing • Daryl Savage: Kou, Stone, Veenker, Burt, Lauing
Candidates Daryl Savage and Mary Kate Stimmler receiving 5 votes is appointed to a partial- term expiring March 31, 2024.
Item 3
Attachment A - May 1,
2023 Draft Action
Minutes
Item 3: Staff Report
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DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 05/01/2023
Third round of voting for Parks and Recreation Commission one (1) full term ending 3/31/2026 Bing Wei: Burt, Kou, Tanaka, Lythcott-Haims
Yudy Deng: Stone, Lauing, Veenker
Laura Granka:
Candidate Bing Wei receiving 4 votes is appointed to the Parks and Recreation Commission full-term expiring March 31, 2026.
Closed Session
3. Review and Acceptance of Auditor’s Office Cybersecurity Assessment Authority: Govt Code section 54957(a) – Threat to Public Services or Facilities Consultation with: City Auditor Adriane D. McCoy, City Manager Ed Shikada, and Information Technology Director Darren Numoto
MOTION: Mayor Kou moved, seconded by Council Member Burt to go into Closed Session.
MOTION PASSED: 7-0
Council returned from Closed Session at 6:50 P.M.
Mayor Kou announced there were no announcements for the public.
Study Session
4. Fiscal Year 2024 Proposed Budget Study Session
Agenda Changes, Additions and Deletions
None
Public Comment
Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Numbers 8, 9.
Item 3
Attachment A - May 1,
2023 Draft Action
Minutes
Item 3: Staff Report
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DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 05/01/2023
MOTION: Council Member Kou moved, seconded by Council Member Burt to approve Agenda Item Numbers 5-9
5. Approval of Minutes from April 17, 2023 Meeting
6. SECOND READING: Adoption of a Park Improvement Ordinance 5487 for Renovations and New Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7-0)
7. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022
8. Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1) Program Management, Network Operations, and Technical Support for Fiber- to-the- Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to Exceed Amount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31, 2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund
9. Approval of Professional Services Contract Amendment Number 3 with Smart Energy Systems, Inc (S18165157) to add $684,023 for a New Total Not -to-Exceed Amount of $1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAU
MOTION PASSES ITEMS 5-7: 7-0
MOTION PASSES ITEMS 8, 9: 6-1, Tanaka no
City Manager Comments
Action Items
10. Adoption of the Community Development Block Grant (CDBG) FY2023 -24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023-24 MOTION: Council Member Stone moved, seconded by Council Member Lythcott-Haims to:
1. Adopt the draft Fiscal Year 2023 -2024 Annual Action Plan (Attachment A) and the associated resolution (Attachment B) allocating Community Development Block Grant (CDBG) funding for Fiscal Year 2023-24;
2. Authorize the City Manager to execute the Fiscal Year 2023 -24 CDBG application to fund the Fiscal Year 2023-24 Annual Action Plan and any other necessary documents Item 3
Attachment A - May 1,
2023 Draft Action
Minutes
Item 3: Staff Report
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DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 05/01/2023
concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; and
3. Authorize staff to submit the Fiscal Year 2023 -24 Annual Action Plan (Attachment A) to U.S. Department of Housing and Urban Development (HUD) by the May 15, 2023, deadline.
MOTION PASSED: 7-0
11. PUBLIC HEARING / QUASI -JUDICIAL. 2147 Yale Street [22PLN -00374]: Recommendation on Applicant’s Request for a Preliminary Parcel Map with Exceptions to Divide an Existing 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot lots, smaller than the minimum allowed by the Zoning Code. No changes are proposed to the existing residences. Environmental Assessment: Exempt per CEQA 15301. Zoning District: RND (NP) Two Unit Multiple-Family Residential District, Neighborhood Preservation Overlay.
MOTION: Council Member Tanaka moved, seconded by Council Member Lythcott-Haims to approve the item and direct staff to add a condition of approval that any further development or alterations to the property would be prohibited.
SUBSTITUTE MOTION: Vice Mayor Stone moved, seconded by Council Member Lauing to accept the staff and PTC recommendation to deny the project.
MOTION PASSED: 5-1, Tanaka no
Council Member Questions, Comments and Announcements
Adjournment: The meeting was adjourned at 10:38 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor Item 3
Attachment A - May 1,
2023 Draft Action
Minutes
Item 3: Staff Report
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DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 05/01/2023
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council
found action minutes and the video/audio recordings of Council proceedings to be the offici al records of both Council and committee proceedings. These recordings are available on the City’s website.
Item 3
Attachment A - May 1,
2023 Draft Action
Minutes
Item 3: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 15, 2023
Report #:2303-1078
TITLE
Approval of a three-year General Services contract with Johnson Controls Fire Protection, totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services; and Approval of a Budget Amendment in the General Fund.
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager, or their designee, to execute contract C23187159, for a term of June 1, 2023 through May 31, 2026, with Johnson Controls Fire Protection in the amount of $423,830 for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services; and
2. Authorize the City Manager, or their designee, to negotiate and execute one or more change orders to the contract with Johnson Controls Fire Protection in an amount not to exceed $42,383 for related, additional but unforeseen work which may develop during the contract period; and
3. Amend the Fiscal Year 2023 budget appropriation for the General Fund (requires a 2/3 vote) by:
a) Increasing the Public Works Department Public Services Division operating budget ongoing contract expenses expenditure by $95,825; and
b) Decreasing the Budget Stabilization Reserve by $95,825.
BACKGROUND
The automatic fire extinguishing systems in City facilities require quarterly, annual, and five- year inspections to ensure functionality. These inspections are done in accordance with the 2013 Edition of the California Code of Regulations (CCR), Title 19, NFPA 25 Chapters 5, 6, and 8.
Item 4
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Under the recommended contract1, Johnson Controls Fire Protection will be responsible for the inspections and for correcting any deficiency repairs found during these inspections.
ANALYSIS
Scope Overview
The City has 30 facilities that have automatic fire extinguishing systems. Inspections at these facilities are performed during the first two weeks of March, June, September, and December each year. The contractor will use inspection forms from the 2013 Edition of the CCR. Copies of all completed inspection forms will be emailed to Public Works Facilities Management within five days. Required deficiency repairs are noted after each inspection and proposals to make these repairs are sent to Facilities Management shortly thereafter. For annual and five-year inspections, the contractor will apply the proper inspection stickers per CCR requirements.
Bid Process
On February 1, 2023, a notice inviting formal bids for Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services was posted on the PlanetBids website. The bidding period was 23 days. Bids were received from two qualified contractors on February 23, 2023, as listed on the attached Bid Summary (Attachment A).
Summary of Bid Process
BID NAME/NUMBER
AUTOMATIC FIRE EXTINGUISHING SYSTEMS
INSPECTION, TESTING, AND REPAIR
SERVICES
RFQ #187159
Proposed Length of Contract Three Years
Total Days to Respond to Bid 23
Number of Bids Received 2
Bid Price Range $423,830 to $899,700
Staff has reviewed the submitted bids and recommends that the bid of $423,830 submitted by Johnson Controls Fire Protection be accepted and that Johnson Controls Fire Protection be declared the lowest responsible bidder. The award of contract includes the base bid. The change order amount of $42,383 (which equals 10 percent of the total contract) is requested for related, additional but unforeseen work which may develop during the contract term. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also confirmed with the California Department of Industrial Relations (DIR) that the 1 Johnson Controls Fire Protection for Automatic Fire Extinguishing Systems Inspection C23187159; https://www.cityofpaloalto.org/files/assets/public/public-works/public-services/contracts/c23187159-automatic- fire-extinguishing-final-approved.pdf
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contractor has an active DIR registration.
Contract Cost Increases
The prior three-year contract was initially for a not-to-exceed amount of $178,737. However, there were two Amendments to the prior contract to add the cost of unforeseen repairs.
Amendment No. 1 was for $87,207 and Amendment No. 2 was for $113,466. Including the two amendments, the total three-year amount of the contract was $379,411. The new three-year contract total as recommended in this report is $466,213. The cost increase for the new contract can be partially attributed to an increased labor rate which went from $268/hour to $293/hour, a 9.3% increase. The new contract also includes an allowance for unforeseen repairs so the City can potentially avoid contract amendments during the three-year contract term.
FISCAL/RESOURCE IMPACT
Funding for a portion of the first year of this contract is available in the Fiscal Year 2023 Public Works Department operating budget. For the remaining portion, staff recommends increasing the Fiscal Year 2023 budget appropriation by $95,825 and decreasing the Budget Stabilization Reserve by the same amount. Subsequent years of the contract are subject to appropriation of funds through the annual budget process.
STAKEHOLDER ENGAGEMENT
Ten contractors were notified through Planetbids for this procurement. Staff will be notified if repair work will be disruptive in their workspace.
ENVIRONMENTAL REVIEW
This contract is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility and no further environmental review is necessary.
ATTACHMENTS
Attachment A: Bid Summary
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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Bid Summary
Automatic Fire Extinguishing Systems Inspection, Testing, and Repair Services RFQ187159
Vendor Name Bid Amount
Johnson Controls Fire Protection $423,830
Majestic Fire, Inc $899,700
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: May 15, 2023
Report #:2304-1311
TITLE
QUASI-JUDICIAL. 151 S California Avenue {22PLN-00363}: Ratification of Director's Approval of Waiver from the Retail Preservation Ordinance for an Alternative Viable Use to Allow for a Medical Office Use to Occupy a 3,500 Square Foot Tenant Space. Zone District: CC(2).
Environmental Assessment: Exempt from CEQA in Accordance with Guidelines Section 15061(b)(3) and 15301.
RECOMMENDATION
Staff recommends that Council approve the Record of Land Use Action in Attachment B, ratifying the Director’s decision approving the subject waiver request.
EXECUTIVE SUMMARY
This report transmits the Planning & Development Services Director’s tentative approval for a partial waiver from the retail preservation ordinance adopted by Council on August 24, 2022, for the property located at 151 S California Street.
Pursuant to Section 18.40.180 of the Municipal Code, owners of properties outside the Ground Floor (GF) and Retail (R) combining districts may apply for an adjustment or waiver from ground floor retail protections. This waiver is based on showing that the permitted retail or retail-like use is not viable, that the proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation, and that the proposed use will encourage active pedestrian-oriented activity and connections. Applicants must provide substantial evidence to support their application and bear the burden of proof. The Director renders a tentative decision, which is then placed on the City Council’s Consent agenda. The Council may accept this decision on Consent, or alternatively, three council members may pull this item and require a future City Council public hearing.
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BACKGROUND
The proposed tenant space is located within an interior courtyard (Unit 101 of Building E) of the Palo Alto Central Mixed-Use Development. A location map is included in Attachment A and the Applicant’s Request Letter is included in Attachment C.
In 2004 Council approved a rezoning for 50% of buildings C and D and all of building E to change the zoning designation for all or a portion of these buildings, removing the retail combining district from those specific buildings. This is reflected in Ordinance 4808, which is included in the supporting documentation in Attachment D. This change allowed for office uses on these ground floor spaces, while preserving the retail requirements for frontages along Park Boulevard and California Avenue.
In 2016, Council adopted the retail preservation ordinance codified in 18.40.180 of the municipal code. Because this site was occupied by a retail-like use (eating and drinking) at the time, conversion to an office use on the ground floor was no longer permitted.
Tenant History
The current property owner for this 3,500 square foot tenant space acquired title in 2004 and proposed a restaurant use. From 2004 to 2022, three restaurant uses occupied this tenant space.
Two of these restaurant tenants occupied the space (Orchid and China Delight). Although the property owner reports the tenants paid less than half of market rate for rent at the time, both left the site after two years each. Peking Duck occupied the space from 2010 to 2022 but reportedly paid approximately one-third of market rate for rent until 2020 and less than one- tenth market rate for rent between 2020 and 2021. The property owner states that the tenant was ultimately evicted in 2022 for failure to pay rent.
Leasing Efforts
Since April 2021 the owner indicates it has been attempting to lease the space to possible tenants. The supporting documents in Attachment D include a letter from Newmark Properties regarding the efforts to lease the space as well as a summary of 145 perspective tenants that Newmark marketed to but that ultimately indicated that the site would not work for their needs or otherwise stopped responding. These included a range of retail and retail-like uses such as personal service uses as well as eating and drinking uses. The applicant has heard more recently from three interested dental office tenants, but all three indicated that they were reluctant to commit with unknown factors that could be a barrier to their use of the site (i.e. the need for a waiver).
Previous Application
The applicant previously submitted a request in 2019 for a retail waiver request due to economic hardship. Staff denied the request because the site was still occupied and because the applicant failed to provide documentation to support the need for the waiver such as any information about rent reductions, concerns about the existing tenant, and/or efforts to lease the space to a Item 5
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different retail or retail-like use. The applicant withdrew their application prior to Council ratification of the Director’s decision.
ANALYSIS
Since the adoption of the Retail Preservation Ordinance in March 2016, three other waiver requests were granted. It is unclear if this proposed waiver request will encourage others to similarly seek relief from the Retail Preservation Ordinance. The subject waiver approval is not precedent setting, however. Each request received is evaluated on its own merits and is subject to Council acceptance. The future use of the site by a medical office use that complies with the required conditions of approval would comply with applicable zoning regulations and the Comprehensive Plan.
FISCAL/RESOURCE IMPACT
The recommendation in this report has no significant budget or fiscal impacts. The site is currently vacant and therefore is not generating revenue. When it was occupied as an eating and drinking facility, the site generated marginal revenues for the City. Given the significant efforts to lease the space to a new similar tenant that would also generate revenue for the City without success, granting relief from the Retail Preservation Ordinance would have only marginal fiscal impacts on the City and may even result in an unquantifiable benefit to area businesses by avoiding vacancies in this commercial area.
STAKEHOLDER ENGAGEMENT
The Council’s approval of this determination, ratifying the Director’s decision, is effective immediately and is final. A request to pull this item of consent would result in scheduling a future public Council hearing.
As of the writing of this report, no public comments were received on the proposed project.
ENVIRONMENTAL REVIEW
This determination is exempt from the provisions of the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines in that it can be seen with certainty that there is no possibility the decision to waive this property from the city’s retail preservation ordinance would cause a significant effect on the environment. The project is also exempt in accordance with CEQA Guidelines Section 15301 (existing facilities).
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ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft Record of Land Use Action 151 S California Attachment C: Applicant's Request Letter
Attachment D: Supporting documents
Attachment E: 515 S. California Avenue Retail Preservation Waiver Determination 23PLN-00363 APPROVED BY:
Jonathan Lait, Planning and Development Services Director Item 5
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Attachment A:
Location Map
151 S California
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Area of Request
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APPROVAL NO. 2023-____
RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 151 S. California Avenue: RETAIL PRESERVATION WAIVER REQUEST (23PLN-00363) On __________, 2023, the City Council of the City of Palo Alto Ratified the Director of Planning & Development Services Approval of a Retail Waiver Request for a 3,500 sf tenant space at 151 S. California, allowing for an Alternative Viable Use, Medical Office, making the following findings, determinations and declarations:
SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows:
A.The permitted retail or retail-like use is not viable at this time.
B.The proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation will encourage active pedestrian- oriented activity and connections.
C.On May 15, 2023, the City Council held considered the matter on its consent calendar, at which time all persons were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council’s Policies and Procedures.
SECTION 2. Environmental Review. This determination is exempt from the provisions of the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines in that it can be seen with certainty that there is no possibility the decision to waive this property from the city’s retail preservation ordinance would cause a significant effect on the environment. The project is also exempt in accordance with CEQA Guidelines Section 15301 (existing facilities).
SECTION 3. Retail Waiver Request Findings
1. The permitted retail or retail-like use is not viable The applicant’s supporting documentation shows the site’s 10-year history, documentation of the applicant’s efforts to lease the tenant space, information regarding the former tenant and eviction notice information, information showing significantly reduced rents offered to try to keep a tenant in the space, the surrounding land uses, previous actions and determinations related to this tenant space in accordance with Ordinance 4848, the visibility of the space from the street, and a support letter from the properties’ Home Owners Association. This information is detailed in the administrative record and reflected in the staff report (CMR 2304- 1311). This documentation supports the conclusion that a permitted retail or retail-like use is not viable in this space at this time.
2. The proposed use will support the purposes of the zoning district and Comprehensive Plan The proposed Medical Office use is consistent with the allowed uses within the Community Item 5
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Commercial comprehensive plan land use designation and is a permitted use for tenant spaces less than 5,000 sf and that do not front California Avenue within the Community Commercial (2) Subdistrict (CC[2]) Zone District.
3. The proposed use will encourage active pedestrian- oriented activity and connections The proposed use encourages active pedestrian-oriented activity and connections that are conducive to retail uses. Specifically, medical office can serve as a draw, bringing users to the commercial district who may then take advantage of other nearby retail or retail-like spaces, such as eating and drinking or other traditional retail uses.
SECTION 4. Retail Waiver Request Granted. A retail waiver request is granted for the project by the City Council under Palo Alto Municipal Code Section 18.40.180(c), effective May 15, 2023 and subject to the conditions of approval in Section 5 of this Record of Land Use Action.
SECTION 5. Conditions of Approval.
1. CONFORMANCE WITH APPROVED USE. This approval allows for a waiver from the retail preservation ordinance for the proposed medical office use within a 3,500 sf portion of the existing tenant space, which has been determined to meet the City’s criteria as an approved Alternative Active Viable Use and is an otherwise permitted use within the CC(2) zone district for spaces less than 5,000 sf and that do not front California Avenue. Any future use of this tenant space for a land use that does not meet the definition of retail, retail-like, or medical office use, as defined in Chapter
18.04 of the municipal code and that meets the conditions of approval of this waiver would require a subsequent retail preservation waiver.
2.SITE MODIFICATIONS. This project does not include approval of any changes to the building or site. Any future changes to the building or the site would be subject to applicable approvals and permits in conformance with all applicable regulations depending on the scope of the proposed work.
3. SIGNAGE. This approval does not include any signage or modifications to the approved signs on site. New signage or modifications to existing signage would be required to submit for a separate review and approval by the Planning Department.
4. MEDICAL OFFICE USE REQUIREMENTS. To ensure that site modifications and use for any future medical office tenants comply with the requirements in PAMC Section
18.40.180(c)(1)(B) to encourage pedestrian-oriented activity, any medical office use within this space shall include a storefront/entry lobby design that is a minimum 500 sf and that is consistent with a retail environment, such as a reception desk or retail displays and display window. Additionally, medical office uses operating between the hours of of 10:00 p.m. and 6:00 a.m. are not permitted.
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5. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.
6. PERMIT EXPIRATION. The project approval shall be valid for a period of one year from the original date of approval. In the event that the proposed use does not occupy the space within a period of one year within the time limit specified above, the approval shall expire and be of no further force or effect. A written request for a one-year extension shall be submitted prior to the expiration date in order to be considered by the Director of Planning and Development Services.
SECTION 6. Term of Approval. Retail Waiver Request Approval. In the event that the tenant space is not occupied within one year of the date of council approval, the approval shall expire and be of no further force or effect, pursuant to Palo Alto Municipal Code Section 18.77.090. Application for a one-year extension of this entitlement may be made prior to the expiration. A written request for a one-year extension shall be submitted prior to the expiration date in order to be considered by the Director of Planning and Development Services.
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
_________________________ ____________________________
City Clerk Director of Planning and
Development Services
APPROVED AS TO FORM:
___________________________
Assistant City Attorney
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# Tenant Name Use Type Genre Size
Closest
Location Last Contact Commments
1 Starbird Restaurant Chicken 2,000 Sunnyvale 12/23/2022 Tenant is negotiating a deal within the trade area. 2 Koi Palace Restaurant
Dim Sum/Asian
Noodle 5,000 Cupertino 12/23/2022 Tenant has recently opened in Cupertino. Looking for 5,000 S.F. sites in higher traffic areas. 3 SMUV Lagree
Fitness Fitness Fitness 1,800 San Jose 12/23/2022 Tenant going to proceed with a new location in Fremont. 4 Carbon Health Medical Health/Wellness 2,500-3,500 Sunnyvale 12/23/2022 Active Category. Site does not have enough visibilty for Tenant, with lack of convenient parking 5 Pizza My Heart Restaurant Pizza 2,000 Palo Alto 12/21/2022 Tenant is located on University Avenue. No interest in relocating to California Ave. 6 Huckleberry's Restaurant Breakfast/Lunch 3,500 Livermore 12/20/2022 Tenant likes the location, but was concerned with parking. Has an active offer in Sunnyvale, which would cover the trade area. 7 Peet's Coffee Restaurant Coffee 2,000 Palo Alto 12/13/2022 Located in Town and Country Village. Not interested in this site or size. 8 Phil'z Restaurant Coffee 1,500 Palo Alto 12/13/2022 Site on Alma. Not interested in a space on California Ave at this time. 9 Reveille Restaurant Coffee 1,800 San Francisco 12/13/2022 Submitted to broker. Tenant had been quiet during the pandemic as we had seen with many specialty coffee shops. 10 Verve Restaurant Coffee 2,000 Palo Alto 12/13/2022 Great Third Wave coffee purveyor. Not interested in locating so close to University Ave. 11 Tech CU Financial Financial 2,000 Palo Alto 12/13/2022 Per Broker, Tenant is not currently expanding. 12 US Bank Financial Financial 3,500 Menlo Park 12/13/2022 Tenant had been exploring growth via their Union Bank subsidiary. They have been quiet as of late. 13 Blink Fitness Fitness FItness 15,000 N/A 12/9/2022 Tenant is under the equinox umbrella and needs a larger club type setting. Tenant's minimum requirement is 15k S.F. 14 Hapas Brewing Restaurant Brewery/Brewpub 4,500 San Jose 11/18/2022 Current brewery is large, in San Jose. Expansion would be in taproom format, and would not need this amount of space. 15 Silverlake Ramen Restaurant Ramen 2,500 N/A 11/15/2022 Space is too big 16 Bamboo Asia Restaurant Asian QSR 2,000 San Francisco 11/15/2022 Looking to expand, but space is too large. 17 Sauced BBQ &
Spirits Restaurant BBQ 5,000 San Jose 11/15/2022 Space is too small for Tenant. Sister concept to Plucked Chicken & Beer. Located at Santana Row 18 Madison Reed
Color Bar
Personal
Service Beauty 1500 San Francisco 11/15/2022 Submitted sites to broker. Tenant is actively expanding, but looking at shopping centers and highly visible Downtown Sites. Space is too large. 19 Bike Dog Brewing
Co
Brewery/Tap
room Brewery/Taproom 1,800 Sacramento 11/15/2022 No response. 20 Chromatic Coffee Restaurant Coffee 1,500 San Jose 11/15/2022 Current location is a roastery and café in San Jose. Tenant has toyed with expanding to additional cafes, but is not currently active. 21 Temple Coffee
Roasters Restaurant Coffee 2,000 Sacramento 11/15/2022 Multi Unit operator. They showed interest in expanding into the Bay area, but then pulled back during the Pandemic 22 Verizon Wireless Retail Communications 2,500-3,000 Palo Alto 11/15/2022 Submitted to broker. 23 F45 Fitness Fitness 2,000 Mountain View 11/15/2022 Expansion is strategic and based on franchisees within the market. 24 Ben's Barketplace Pets Pet Supply 3,000 Campbell 11/15/2022 Tenant signed a lease in Mountain View. No longer holds a need in the market. 25 Sliver Restaurant Pizza 2,000 Berkeley 11/15/2022 Great local restaurant serving vegetarian pizza. 26 Tasty Pizza Restaurant Pizza 2,000 Sunnyvale 11/15/2022 Similar to Curry Pizza House. Strong local operator. Site is too much for them. 27 Hot 8 Yoga Fitness Yoga 3,500 San Jose 11/15/2022 Open in Santana Row. Tenant had been looking up the Peninsula. Space too small/buried. Not enough parking. 28 RNG Lounge Restaurant Chinese 4,000 San Francisco 11/14/2022 Broker toured space, but did not feel it to be a fit for his client 29 Firewings Restaurant Chicken 2,500 San Mateo 10/12/2022 Tenant is looking to grow rapidly. Prefers shopping centers. 30 Xfinity Retail Communications 3,000 Palo Alto 10/12/2022 Existing location on Oregon Expy. No interest in a relocation to our site. 31 AT&T Retail Communications 1,500 Palo Alto 10/12/2022 Tenant had closed many locations during the pandemic. Open to strategic growth, but focused on small format high traffic locations. 32 Bushido Izakaya Restaurant Japanese 3,000 N/A 9/19/2022 Broker toured space, but did not feel it to be a fit for his client 33 Rumble Fish Restaurant Japanese 2,500 Mountain View 9/19/2022 Tenant was looking to relocate their location, and toured space with their broker. They decided not to pursue the space due to visibility as well as space square footage.
34 Yucca de Lac Restaurant Asian Fusion 3,000 Palo Alto 9/19/2022 Broker toured and took video. Following client discussions, they elected not to pursue 35 House of
Pancake Restaurant Noodle 3,500 San Francisco 9/19/2022 Broker toured and took video. Following client discussions, they elected not to pursue 36 Aqui Cal Mex Restaurant Cal-Mex 3,500 Cupertino 9/19/2022 Tenant is focused on higher foot traffic/visibility with patio 37 Taishoken
Ramen Restaurant Ramen 2,500 N/A 9/19/2022 Space is too big 38 Daeho Galbi Jjim
& Beef Soup Restaurant Korean 3,500 N/A 9/19/2022 Submitted. Broker was evaluating for Tenant. Liked the trade area, but concerned with visibility 39 Chubby Cattle by
the X Pot/Wagyu
House Restaurant Hot Pot 6,000 N/A 9/19/2022 Space is too small 40 All That Shabu Restaurant Shabu Shabu 5,000 N/A 9/19/2022 Space is too small 41 Yuk Dae Jang Restaurant Korean 2,500 N/A 9/19/2022 Space is too big 42 Creator Restaurant Burger 1,500 San Francisco 9/15/2022 Interesting concept. Needs heavy foot traffic and glassline to the street. Robotic Burger Tenant. 43 Poke House Restaurant Poke 1,500 Palo Alto 9/15/2022 Existing location is too close. Space is larger than Tenant needs. 44 Pizza Rev Restaurant Pizza 2,000 Turlock 8/15/2022 Concept has halted growth 45 Pizzeria Delfina Restaurant Pizza 3,000 Palo Alto 8/15/2022 Great concept. Not interested as they are already in Palo Alto on Forest. 46 Rosie's New York
Pizza Restaurant Pizza 3,500 San Jose 8/15/2022 Great local operator, not expanding at this time. 47 Subsalicious Restaurant Sandwich 1,500 San Jose 8/12/2022 Not a player. They are focused on low cost expansion by targeting 2nd gen sandwich shops 48 Trailhead Cyclery Bicycles Bike Shop 2,000 Cupertino 7/5/2022 Opened a flagshiop location in Cupertino. Not interested in another large space. May explore hub and spoke strategy go-forward. 49 Gott's Roadside Restaurant Burger 2,500 Palo Alto 6/23/2022 Located at Town & Country Palo Alto. No interest in relocating. 50 Urban Plates Restaurant American 4,000 Dublin 6/15/2022 Focused on Whole Foods/Mall anchored sites. 51 Shake Shack Restaurant Burger 2,000 Stanford 6/15/2022 Location at Stanford Shopping Center. No interest in another location in the trade area. 52 Pelicana Chicken Restaurant Chicken 1,500 Cupertino 6/15/2022 Location open in Cupertino. 53 Barefoot Coffee Restaurant Coffee 1,500 Campbell 6/15/2022 Tenant struggled during the Pandemic with limited wholesale/office roasting contracts. Not expanding 54 The Woodhouse
Personal
Service Health/Wellness 6,000 Walnut Creek 6/15/2022 Space is too small for Tenant. They also prefer 2nd level space in high income areas due to rent sensitivity. 55 Locanda Restaurant Italian 2,500 Campbell 6/15/2022 Strong East Bay Operator. Just opened space in Campbell. Focused on strategic growth. Will follow up 56 Halal Guys Restaurant Mediterranean 1,800 Redwood City 6/12/2022 Great concept. Space is too big. Passing on site. 57 Doppio Zero Restaurant Pizza 3,500 Mountain View 6/12/2022 Tenant shut down location in Cupertino during the pandemic. Not in expansion mode. 58 Pizza Bocca Lupo Restaurant Pizza 2,000 San Jose 6/12/2022 Located in the San Pedro Square market. Tenant prefers market hall settings. 59 Out of the Barrel Restaurant Brewery/Taproom 1,500 Campbell 6/10/2022 Great operator in Los Gatos/Campbell. Needs a smaller space with large patio 60 Burgers & Brew Restaurant Burger 4,000 Davis 6/10/2022 Not focused on the Bay Area for now. 61 Twisted
Dougnuts and
Coffee
Restaurant Doughnuts 1,800 San Francisco 6/5/2022 No interest in expansion at this time. 62 Zocalo's Restaurant Mexican/Tapas 5,000 Sacramento 6/5/2022 Pushing Tenant to expand into the Bay Area. Not confirmed yet. 63 Curry Pizza
House Restaurant Pizza 1,800 Palo Alto 6/5/2022 On University Ave. Great operator. Space too large. Focusing on 2nd generation pizza locations. 64 The Growler
Guys Restaurant Brewery/Taproom 3,000 Reno, NV 6/1/2022 Tenant opened a site in San jose, but it subsequently closed. 65 Blue Bottle Restaurant Coffee 1,500 - 2,000 Palo Alto 6/1/2022 Location is too close to this site. Concerned about foot traffic compared to their current site in University Ave. 66 Equator Coffees Restaurant Coffee 1,500 Burlingame 6/1/2022 Site is not a target. Space is too big 67 Huskins Restaurant Coffee 1,500 Santa Ana 6/1/2022 Tenant was exploring an expansion into Santa Clara County. Not pursuing at this time. 68 Ijava Cafe Restaurant Coffee 1,500 Santa Clara 6/1/2022 Not expanding at this time. 69 Cinnaholic Restaurant Dessert 1,200 San Jose 6/1/2022 Tenant is looking to sublease location in DT San Jose. Not expanding with that franchisee. 70 Restore Hyper
Wellness
Personal
Service Health/Wellness 2,500 - 3,000 Texas 6/1/2022 Broker feedback is that Tenant is focused on a PA location, but will need other core demand drivers, such as grocery/fitness. 71 Dish Dash Restaurant Mediterranean 1,800 Sunnyvale 6/1/2022 Great operator. Focusing on their smaller format Dish N Dash concept due to labor shortage. Site too large. 72 Healthy Spot Pets Pet Supply 3,000 San Francisco 6/1/2022 LA Based concept. Focusing on higher visibility/traffic space. 73 Pizza Chicago Restaurant Pizza 2,500 Palo Alto 6/1/2022 Tenant is not interested in relocating from El Camino Real. Space is too big/buried. 74 UPS Store Restaurant
Professional
Services 1,500 Palo Alto 6/1/2022 Space too large for Tenant. 75 Ramen Hiroshi Restaurant Ramen 2,000 San Ramon 6/1/2022 No interest in expansion at this time. 76 AOPS (High
Level Learning) Education Tutoring 6,000 Santa Clara 6/1/2022 Tenant doing a deal in Mountain View. Too close to site. Site was too small for Tenant. 77 Poki Bowl Restaurant Poke 1,500 Sunnyvale 3/12/2022 Tenant paused expansion until office population returns for lunch business. 78 Bluemercury Retail Beauty 1,800 Los Altos 1/15/2022 Not enough co-tenancy for Tenant. Space is too large for Tenant's use. 79 Godfather's
Burger Lounge Restaurant Burger 3,500 Belmont 1/15/2022 Not actively expanding. 80 The Everest
Momo Restaurant Indian 2,000 Sunnyvale 1/15/2022 Tenant operates out of their food truck. Great food, but no interest in brick & mortar. 81 The Bird Restaurant Chicken 1,500 San Francisco 1/12/2022 Not interested in the space. 82 Veggie Grill Restaurant Plant-Based 2,500 Mountain View 11/18/2021 Space is too large for Tenant's requirement. Focused on high visibility shopping center/mall sites. 83 Brew City
Burgers Restaurant Burger 2,500 Campbell 11/15/2021 Great local operator. Needs high visibility. Located in Campbell. 84 Afters Ice Cream Restaurant Dessert 1,200 Oxnard 11/15/2021 Not looking at Northern California at this time. 85 Sidecar
Doughnuts Restaurant Doughnuts 1,800 Santa Monica 11/15/2021 Per broker, Tenant's expansion to Norther California was put on hold due to the Pandemic. They have not re-engaged on Northern California opportunities. 86 Ramen Dojo Restaurant Ramen 1,800 San Mateo 11/15/2021 Space is too large 151 S. California Ave., Palo Alto - Tenant Outreach Report (12/27/2022) Item 5
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87 Pedego Bicycles Bike Shop 1,500 Palo Alto 10/21/2021 Electric Bikes. Already in market. Site is too big to pursue. 88 Hops & Scotch Restaurant Craft Cocktail 2,500 Walnut Creek 10/12/2021 Tenant was exploring a South Bay opportunity, but put that effort on pause. 89 85 C Restaurant Dessert 2,500 - 3,000 Cupertino 10/12/2021 Tenant needs high visibility end cap units. 90 Mendocino
Farms Restaurant Sandwich Salad 2500 Palo Alto 10/12/2021 Tenant has a location on Hamilton Ave. No intererst in a space this close. 91 C&C Curry
House Restaurant Vietnamese 1,500 Burlingame 10/12/2021 Space is too large. Prefer smaller units with street visibility 92 Chicken Meets
Rice Restaurant Vietnamese 1,500 Santa Clara 10/5/2021 Tenant not yet ready to expand. 93 Blue Line Pizza Restaurant Pizza 3,000 Mountain View 9/28/2021 Great operator. Looking for heavier foot traffic. 94 Koja Kitchen Restaurant Asian QSR 2,500 San Mateo 9/21/2021 Tenant paused on expansion during the pandemic. 95 Base Color Bar
Personal
Service Beauty 1,500 - 2,000 Los Angeles 9/20/2021 Space is too large for Tenant's need. 96 Dry Bar
Personal
Service Beauty 1,500 Stanford 9/20/2021 Space too large for Tenant. Would require demising. Tenant is also concerned about visibility. Looking for a more dynamic/Grocery anchored property. 97 Fieldwork
Brewing Restaurant Brewery/Taproom 2,000 San Mateo 9/20/2021 Tenant has used all of their taproom/tasting room licenses from their existing brewery. Unable to further expand for the time being. Tenant also required ±1,500 S.F. of patio.
98 The Bar Method Fitness FItness 1,800 Palo Alto 9/20/2021 Space is too large for Tenant need. Current location in Town & Country. 99 CrossFIT Fitness FItness 3,500 Palo Alto 9/20/2021 Tenant needs significant outdoor space for their workout programs. The site will not work. ## Arctic Restore
Personal
Service Health/Wellness 2,500 Alamo 9/20/2021 Tenant showed interest in expanding and then pulled back during the pandemic. ## Float Station
Personal
Service Health/Wellness 1,800 Campbell 9/20/2021 No feedback. ##
Reboot Float &
Cryo Spa
Personal
Service Health/Wellness 1,800 San Francisco 9/20/2021 Tenant not currently growing. ## Senspa
Personal
Service Health/Wellness 2,000 San Francisco 9/20/2021 Not interested. ## Falafel Drive In Restaurant Mediterranean 1,500 San Jose 9/20/2021 Tenant is unable to support a Palo Alto location. ## Meso Restaurant Mediterranean 6,000 San Jose 9/20/2021 Located at Santana Row. Concept from the owner of Left Bank. Space is too small for Tenant's format. ## C Casa Restaurant Mexican/Tapas 3,000 Emeryville 9/20/2021 Focused on market halls over freestanding restaurant spaces. ##
Luna Mexican
Kitchen Restaurant Mexican/Tapas 3,000 Campbell 9/20/2021 Two current locations on The Alameda (San Jose) and in the Pruneyard (Campbell). Looking for strategic growth. Need to create a presence, and are concerned with the space locatino in the central courtyard.
## Tac-Oh Restaurant Mexican/Tapas 1,500 San Jose 9/20/2021 Concept not expanding ## Yoga 6 Fitness Yoga 3,000 Mountain View 9/20/2021 Located over at the Village at San Antonio Mountain View. Not interested in expansion in this zone. ## Kebab Shop Restaurant Mediterranean 1,800 Santa Clara 9/18/2021 Tenant had contracted and is exploring strategic expansion. Space is too large ## Tacolicious Restaurant Mexican/Tapas 1,800 N/A 9/17/2021 Palo Alto location permanently closed. Concept shut down at Santana Row. Not expanding. ## Sephora Retail Beauty 5,000 Palo Alto 9/15/2021 Existing Palo Alto location. No interest. ##
Temescal
Brewing Restaurant Brewery/Taproom 1,500 Oakland 9/15/2021 No Interest. ## Pure Barre Fitness FItness 1,800 Palo Alto 9/15/2021 Space is too large for Tenant need. No interest in relocating down Cal. Ave. ## Dog Haus Restaurant Hot Dog 3,500 San Carlos 9/15/2021 Tenant was starting to look for new opportunities mid-pandemic, but then went back on pause. ## Curry Up Now Restaurant Indian 1,500 - 3,000 Palo Alto 9/15/2021 On Hamilton Ave. Focusing on higher foot traffic locations. Tenant does have a larger format operation including bar at ±3,000 S.F. Passing on site. ## Bevri Restaurant Mediterranean 2,500 - 3,000 Palo Alto 9/15/2021 Tenant looking to relocate, but is not interested in California Ave. Focusing on San Mateo County/San Francisco markets. ## Blaze Pizza Restaurant Pizza 3,500 San Jose 9/15/2021 Tenant has stopped expansion during the pandemic. ##
Plucked -
Chicken & Beer Restaurant Chicken 2,000 Pleasanton 9/12/2021 Concept paused on expansion during the pandemic and has not restarted. (Sister concept to Sauced BBQ in Santana Row/Livermore) ## Asian Box Restaurant Asian QSR 1,500 Palo Alto 9/7/2021 Located at Town and Country. No interest in relocating. Space too big. ## Summit Bicycles Bicycles Bike Shop 4,000 Palo Alto 9/7/2021 Pushing for Relocation. Tenant not expanding due to inventory shortage, and has no interest in relocating. ##
The Bike
Connection Bicycles Bike Shop 3,000 Palo Alto 9/7/2021 Located down the street. No interest in relocating. ##
True REST Float
Spa
Personal
Service Health/Wellness 1,800 Napa 9/7/2021 Space is too large. ## 100% Pure Retail Beauty 2,000 Santa Clara 9/1/2021 Not enough co-tenancy for Tenant. Space is too large for Tenant's use. ## Stacks Restaurant Breakfast 3,000 Menlo Park 9/1/2021 Menlo Park location covers this trade area. ##
Bare Bottle
Brewing Restaurant Brewery/Taproom 2,000 - 3,500 Santa Clara 9/1/2021 Incredible operator. Needs more synergy/visibility. ## Stein's Restaurant Brewery/Taproom 3,500 Mountain View 9/1/2021 Tenant was closing locations during the pandemic. Not expanding. ## Eureka Restaurant Burger 4,000 Mountain View 9/1/2021 Concept struggled financially during the pandemic, and was focused on finishing out existing spaces under construction and keeping current stores afloat. No interest.
## ROAM Restaurant Burger 2,000 San Mateo 9/1/2021 Likes Palo Alto, but not a fan of California Ave. ##
Bird Rock Coffee
Roasters Restaurant Coffee 1,800 Del Mar 9/1/2021 Tenant not looking in Northern California at this time. ## Blvd Coffee Restaurant Coffee 1,500 Los Gatos 9/1/2021 Not expanding at this time. ## Rooster & Rice Restaurant
Dim Sum/Asian
Noodle 1,500 Redwood City 9/1/2021 Tenant was in rapid expansion mode pre-pandemic, but pulled back. Focus has been office/daytime adjcent locations. ## Serious Dumpling Restaurant
Dim Sum/Asian
Noodle 1,500 San Jose 9/1/2021
Founder of Sino/Straits in Santana Row. Concept was in its infancy when the pandemic hit. Tenant working to open San Jose site before returning to growth opportunities.
## Capital One Financial Financial 6,000 Santa Clara 9/1/2021 Focusing on highly visble/mall locations. Space is also too small (Capital One Café) ## Ramen Nagi Restaurant Ramen 2,000 Palo Alto 9/1/2021 Already in DT Palo Alto. No interest in relocating ## La Dolce Velo Bicycles Bike Shop 2,000 San Jose 8/17/2021 Great local bike shop. Tenant not expanding due to inventory shortage. ## Mo's Restaurant Breakfast/Burgers 3,000 Campbell 8/17/2021 Need a strong restaurant co-tenancy and foot traffic ##
Mela Tandoori
Kitchen Restaurant Indian 2,000 San Francisco 8/17/2021 Not expanding at this time. ## Tomatina Restaurant Italian 3,500 Santa Clara 8/17/2021 Concept expansion is on hold. ## Pho Tastic Restaurant Vietnamese 2,000 San Jose 8/13/2021 Tenant not expanding at this time ##
Saigon Alley
Kitchen & Bar Restaurant Vietnamese 2,500 Sacramento 8/13/2021 No current interest in a Palo Alto location ## Ramen Parlor Restaurant Ramen 2,000 San Mateo 7/13/2021 Tenant is not look to expand at this time. ## Lee Sandwiches Restaurant Vietnamese 1,800 Sunnyvale 7/13/2021 Space too large. Tenant unable to pursue. ## Umami Burger Restaurant Burger 2,000 N/A 6/12/2021 Tenant not expanding. Location in DT Palo Alto (University Ave) closed. ## Poke Bar Restaurant Poke 1,500 Mountain View 4/18/2021 Tenant paused expansion until office population returns for lunch business.
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151 S. California Avenue; Application #23PLN-00363
May 3, 2023
Peggy C. Lee
PO Box 3183
Los Altos, CA 94024
Subject: 151 S. California Avenue Retail Preservation Waiver Determination 23PLN-00363
Dear Ms. Lee,
In accordance with Palo Alto Mun icipal Code Section 18.40.1 80(c), your request for a waiver from the City's retail preservation ordinance to allow an Alternative Viable Active Use (medical office use) for a 3,500 commercial space located within the interior courtyard (Building E) of Palo Alto Central at 151 S. California Avenue has been tentatively approved with conditions. The conditions of approval are provided in Attachment A. This determination will be placed o n the City Council's May 15, 2023 consent calendar agenda. If three or more council members vote to pull the item from the consent agenda, you will be notified of a future public hearing regarding your request. If a pproved on the consent agenda, this decision will be final.
This determination is based on information provided to the City, including the site’s 10-year history, documentation of the applicant’s efforts to lease the tenant space, information regarding the former tenant and eviction notice information , the surrounding land uses , previous actions and determinations related to this tenant space in accordance with Ordinance 48 48, the visibility of the space from the street, and a support letter from the properties’ Home Owners Assoc iation. The proposed Medical Office use is consistent with the allowed uses within the Community Commercial Comprehensive Plan land use designation and is a permitted use within the CC[2] Zone District. The proposed use, as conditioned, would encourage active pedestrian-oriented activity and connections that are condusive to adjacent retail uses.
In accordance with PAMC 18.40.180(c)(1)(B), the Director may issue a tentative decision to approve a retail waiver for an Alternative Viable Use based on finding s that the permitted retail or retail-like use is not viable; the proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian- oriented activity and connections. Based on the aforementioned information, the undersigned finds retail and retail-like uses are not viable within this tenant space at this time and that the proposed medical office use supports the purposes of the Z oning District and Comprehensive Plan land use designation and encourages pedestrian-oriented activity.
No modifications to the building are proposed as part of the proposed project. Any future physical modifications to the site would be required to comply with the other applicable provisions of the DocuSign Envelope ID: 73E81070-1B3C-4773-BD8D-17149885E7CA Item 5
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151 S. California Avenue; Application #23PLN-00363
Municipal Code, be consistent with the City's Comprehensive Plan, and will likely require permits from the City’s Planning and/or Building Division.
If you have any questions regarding this determination, please do not hesitate to contact me or your Project Planner, Claire Raybould at [email protected] or (650) 329-2116.
Sincerely,
Jonathan Lait
Director of Planning & Development Services
Attachment A: Conditions of Approval
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Attachment A:
Conditions of Approval (151 S. California; 23PLN-00363)
1. CONFORMANCE WITH APPROVED USE. This approval allows for a waiver from the retail preservation ordinance for the proposed medical office use within a 3,500 sf existing tenant space, which has been determined to meet the City’s criteria as an approved Alternative Active Viable Use and is an otherwise permitted use within the CC(2) zone district for spaces less than 5,000 sf and that do not front California Avenue. Any future use of this tenant space for a land use that does not meet the definition of retail, retail-like, or medical office use, as defined in Chapter 18.04 of the municipal code and that meets the conditions of approval of this waiver would require a subsequent retail preservation waiver.
2. SITE MODIFICATIONS. This project does not include approval of any changes to the building or site. Any future changes to the building or the site would be subject to applicable approvals and permits in conformance with all applicable regulations depending on the scope of the proposed work.
3. SIGNAGE. This approval does not include any signage or modifications to the approved signs on site. New signage or modifications to existing signage would be required to submit for a separate review and approval by the Planning Department.
4. MEDICAL OFFICE USE REQUIREMENTS. To ensure that site modifications and use for any future medical office tenants comply with the requirements in PAMC Section 18.40.180(c)(1)(B) to encourage pedestrian-oriented activity, any medical office use within this space shall include a storefront/entry lobby design that is a minimum 500 sf and that is consistent with a retail environment, such as a reception desk or retail displays and display window. Additionally, medical office uses operating between the hours of of 10:00 p.m. and 6:00 a.m. are not permitted.
5. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.
6. PERMIT EXPIRATION. The project approval shall be valid for a period of one year from the original date of approval. In the event that the proposed use does not occupy the space within a period of one year within the time limit specified above, the approval shall expire and be of no further force or effect. A written request for a one-year extension shall be submitted prior to the expiration date in order to be considered by the Director of Planning and Development Services.
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Certificate Of Completion
Envelope Id: 73E810701B3C4773BD8D17149885E7CA
Status: Completed
Subject: Complete with DocuSign: 2023-0503 Retail waiver Tentative Approval Letter 151 S California Fina...
Source Envelope:
Document Pages: 3
Signatures: 1
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Certificate Pages: 2
Initials: 0
Jodie Gerhardt
AutoNav: Enabled
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 199.33.32.254
Record Tracking
Status: Original
5/3/2023 5:31:18 PM
Holder: Jodie Gerhardt
[email protected]
Location: DocuSign
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Jodie Gerhardt
[email protected]
Manager Planning
COPA
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Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Jonathan Lait
[email protected]
Interim Director Planning and Community
Environment
City of Palo Alto
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Signed using mobile
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Claire Raybould
[email protected]
Senior Planner
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Sent: 5/4/2023 4:39:52 PM
Electronic Record and Signature Disclosure:
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California Avenue Retail
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 15, 2023
Report #:2303-1185
TITLE
Approval of a Design-Build Contract with Parking Guidance Systems, LLC in the Amount of $4,180,217 with Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $418,022 for the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment Project, Capital Improvement Program Project PL-15002; and Approval of a Budget Amendment in the Capital Improvement Fund; CEQA status – exempt under CEQA Guidelines Section 15301(c)
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager, or their designee, to execute the design-build contract with Parking Guidance Systems, LLC. (Contract No. C23180632A) in an amount not to exceed $4,180,217 for the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment Project (PL-15002);
2. Authorize the City Manager, or their designee, to negotiate and execute change orders to the contract with Parking Guidance Systems, LLC in an amount not to exceed $418,022 for related additional, but unforeseen work that may develop during the project; and
3. Amend the Fiscal Year 2023 Budget Appropriation for the Capital Improvement Fund by (requires a 2/3 vote):
a. Decreasing the ending fund balance by $2,398,150; and b. Increasing the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment project (PL-15002) appropriation by $2,398,150.
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EXECUTIVE SUMMARY
Since 2020, establishment of a downtown automated parking guidance system for the four Downtown parking garages has been part of the Council-adopted infrastructure plan. The California Avenue Parking Garage at 350 Sherman Avenue uses the INDECT parking guidance system, which features ceiling-mounted, multifunctional camera sensors to monitor and display the availability of parking spaces as well as parking management tools. INDECT also provides remote monitoring and maintenance services. This system was subsequently adopted as the standard for all City-owned garages to ensure interoperability, as well as addressing surveillance ordinance requirements. However, a contract with this company for design and installation was cancelled due to state contractor licensing difficulties.
This report recommends award of a design-build contract with Parking Guidance Systems, LLC., a qualified licensed contractor in California, for the installation of automated parking guidance systems at all four City-owned downtown garages. This includes contingency funding for unforeseen work, as well as a budget appropriation amendment to fund the project.
BACKGROUND
The Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equipment project (PL-15002) provides funding to address infrastructure and capital improvements for City-owned parking facilities. This includes design and installation of new parking guidance systems at the four Downtown parking garages.
In June 2014, City Council adopted the 2014 Council Infrastructure Plan that prioritized and provided a funding plan for projects including the Public Safety Building and the California Avenue Parking Garage. Later, in 2020, Council added the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment Project (PL-15002) to the 2014 Council Infrastructure Plan, as a part of the Fiscal Year 2020 Capital Budget.
The California Avenue Parking Garage at 350 Sherman Avenue uses the INDECT parking guidance system to provide drivers with an enhanced parking experience. This system features ceiling- mounted, multifunctional camera sensors that can monitor and display the status of up to six parking spaces, with three on each side of the parking aisle. Integrated LED indicators within the sensor casing display space availability and the type of parking permitted. The sensors provide detailed parking reports, audits, and performance analysis to help the Office of Transportation continually improve parking efficiency. Additionally, the system provides custom signage, a customizable mobile application, and potential license plate recognition capabilities. INDECT also provides remote monitoring and maintenance services.
In assessing the needs of the Downtown parking garages, staff reached out to subject matter experts (Watry Design Inc. and Dixon Resources Unlimited) in November 2019 on the parking guidance system technologies who recommended that the City pursue the same camera-based technology installed at the New California Avenue Parking Garage project (PE-18000).
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Staff visited two parking garages at the City of Walnut Creek and the City of Berkeley with the INDECT system installed to assess its capabilities. The system appeared to be functioning at a high level and met the City’s standards and desired capabilities. Based on recommendations from subject matter experts and staff’s research, the INDECT parking guidance system has all the capabilities that the City requires to modernize its parking program.
In July 2020, as authorized under PAMC Section 2.30.360(e), the City Manager approved a standardization exemption from the City’s competitive solicitation requirements to procure the INDECT parking guidance system, so the City would have the same parking system across all City- owned garages.
In November 2020, Council approved the surveillance policy and use of a parking guidance system for future installations at other City-owned parking garages 1.
In August 2021, Council approved a design-build contract with INDECT USA (INDECT), Contract No. C211806322 to install the INDECT parking system. However, INDECT USA, based in Colorado, could not obtain Engineering and Contracting licenses in the State of California. As a result, the contract with INDECT USA was cancelled and another procurement initiated.
ANALYSIS
Project Description
Staff developed a scope of services for a design-build project with assistance from the Office of Transportation and Dixon Resources Unlimited, a consulting firm with expertise in this area. By involving a single design-build entity, the goal is to reduce change order and schedule risk as the design-build team and construction contractor work together to provide an outcome within the City’s constructability and budget parameters.
The Design-Build delivery method is recommended instead of the Design-Bid-Build method for this project, as the design and construction processes in the Design-Build approach offer greater integration across these phases. In Design-Bid-Build, each phase of design, bid, and construction is implemented separately, whereas in Design-Build, the phases can overlap to help ensure quick delivery. The scope of the recommended Design-Build project consists of design, procurement, fabrication, installation, testing, and implementation, including furnishing all material, equipment, labor, and supervision for a new fully operational parking guidance system. The scope also includes digital wayfinding signage.
1 City Council, November 2, 2020; Agenda Item #7, SR #11666, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11666.pdf
2 City Council, August 9, 2021, Agenda Item #3, SR #11680; https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id.-11680.pdf
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Under this proposed Design-Build contract, the contractor will design and install automated parking guidance systems at four downtown area garages. The scope includes preliminary design submittals, construction documents, electrical connections, permitting, and purchase and installation of all supplies, materials and equipment to provide a turn-key system. The Design- Build process is expected to take 16 months from the date of the contract notice to proceed.
Additionally, staff intends to enter into a separate contract with INDECT for ongoing service, maintenance, and online hosting of the parking guidance system software for the four garages included in this design-build contract, and for the California Avenue Parking Garage. Staff will return to Council for approval of the ongoing services contract.
Procurement Process
On June 15, 2022, the City released a design-build request for proposal (RFP 180632A) through the City’s PlanetBids eProcurement system. The bidding period was 48 calendar days. The City received one proposal from Parking Guidance Systems, LLC.
Bid Name/Number Automated Parking Guidance System (APGS) Design-Build Project/RFP #180632A
Proposed Length of Project 16 months
Number of Consultants Contacted 12
Number of Builder Exchanges 8
Number of Websites 1 (PlanetBids)
Number of Days to Respond 48 days
Number of Proposals Received 1
Responding Companies Parking Guidance Systems, LLC
Proposed Fee Range $4,180,217
The design-build contract includes all four downtown area parking garages:
▪Garage S/L (Bryant/Lytton) – 445 Bryant Street
▪Garage CW (Cowper/Webster) – 520 Webster Street
▪Garage R (Alma/High) – 528 High Street
▪Garage CC (Civic Center) – 250 Hamilton Avenue
A bid was received from Parking Guidance Systems, LLC in the amount of $4,180,217 for all four downtown garages. Staff reviewed the submitted proposal and recommends acceptance and approval of Contract No. 23180632A3 with Parking Guidance Systems, LLC for all four downtown garages. The construction contingency amount of $418,022, which approximately equals ten 3 Parking Guidance Systems, LLC Design-Build Contract for Automated Parking Guidance Systems No. C23180632A; https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip- contracts/c23180632a_parking-guidance-systems_db_05.15.2023_staff-report.pdf Item 6
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percent of the total contract value, is requested for related, additional, but unforeseen work, which may arise during the project, implemented via City-approved change orders.
Staff confirmed with the Contractor’s State License Board that the contractor has an active license on file. INDECT USA is a subcontractor of Parking Guidance System, LLC.
FISCAL/RESOURCE IMPACT
The total contract with Parking Guidance Systems, LLC is $4,598,239. Staff recommends increasing the Fiscal Year 2023 budget appropriation for the Downtown Automated Parking Guidance System, Access Controls & Revenue Collection Equipment project (PL-15002) by $2,398,150 using Capital Improvement Fund reserves to award the attached contract and provide additional funds for project administrative costs including permit fees, printing and project outreach. A transfer of $4 million in surplus General Funds was transferred to the Capital Improvement Fund in the FY 2023 Mid-Year Budget in alignment with Council policy and in anticipation of this needed budget appropriation action.
Not included in this design-build contract is the ongoing annual cost for INDECT’s service, maintenance, and online hosting of the parking guidance system software, the amount of which is anticipated to be approximately $156,000 annually (excluding City of Palo Alto fiber fees). This contract will cover the first twelve months of service, maintenance, and online hosting of the parking guidance system software. Staff will return to Council for approval of an ongoing services contract. Staff expects that the ongoing services contract will be paid for by the respective parking funds.
STAKEHOLDER ENGAGEMENT
Outreach will be done during construction including updates to the City’s website and NextDoor posts as well as direct outreach to parking garage users including signage at garages and email updates.
ENVIRONMENTAL REVIEW
This project is categorically exempt under CEQA Section 15301(c) for minor alterations of existing public facilities. Therefore, no further environmental review is necessary.
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 15, 2023
Report #:2304-1248
TITLE
Adoption of a Resolution Authorizing the City Manager or their Designee to sign Grant-Related Documents with Caltrans for the Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Program Project PE-12011; CEQA: Environmental Impact Report for the Newell Road Bridge (Resolution No. 9889)
RECOMMENDATION
Staff recommends that Council adopt the attached resolution authorizing the City Manager or their Designee to sign grant-related documents with Caltrans for the Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Program Project (PE-12011).
BACKGROUND
The Budget Act of 2022 made appropriations for the support of state governments for the 2022-23 fiscal year. Subdivision (G)(Y) of Section 19.56 of the Budget Act (Act) appropriated $2,000,000 from the State General Fund to Caltrans to be allocated to the City of Palo Alto for the replacement of the Newell Road Bridge over San Francisquito Creek. California Department of Transportation (Caltrans) determined that the best method for allocation and to ensure the funds are used for the purpose specified in Section 19.56 of the Act is to execute a Funds Transfer Agreement. Caltrans is preparing the proposed agreement template and has notified City staff that this may take two to three months to finalize. Based on Caltrans’ assurance, staff expects the template to be similar to the one used for the budget act of 2021.
ANALYSIS
Once the agreement template is finalized and provided to the City of Palo Alto, staff will complete the necessary information which includes the project background, scope of work, and clear description of how the $2,000,000 appropriation will be used. Staff estimates it may take a couple of months for Caltrans to review and approve. The resolution is required by Caltrans to receive the funding; however, the resolution does not authorize changes to the current design contract or allow staff to advance construction work. Council will have the ability to review the Item 7
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project expenses and to provide approval on any contract awards or amendments. This resolution would simply allow staff to quickly secure the funding without a subsequent Council action.
FISCAL/RESOURCE IMPACT
The recommended Council action does not represent any changes in terms or funding resources.
This $2,000,000 budget appropriation has been included in the Fiscal Year 2024 proposed budget for the Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Program Project PE-12011.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement has been conducted as part of the Newell Road Bridge Replacement project.
ENVIRONMENTAL REVIEW
An Environmental Impact Report was prepared and certified by Council on June 1, 2020, by adoption of Resolution No. 98891.
ATTACHMENTS
Attachment A: Resolution Authorizing Execution of Administering Agency-State Master Agreements for State and Federal -Aid Funded Projects
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
1 Resolution 9889, https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso- 9889.pdf?t=62904.01
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*NOT YET APPROVED*
1 0006_20230502_mv30
Resolution No. ____
Resolution of the Council of the City of Palo Alto Authorizing Execution of the Funds Transfer Agreement with the California Department of Transportation (Caltrans) for the replacement of the Newell Road Bridge over San Francisquito Creek.
R E C I T A L S
A. The City of Palo Alto is eligible to receive Federal and/or State funding for certain Transportation Projects through Caltrans; and
B. The City of Palo Alto is eligible to receive such funding for the replacement of the Newell Road Bridge over San Francisquito Creek; and
C. Master Agreements, Project Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements must be executed with the Caltrans before such funds can be claimed; and
D. The City of Palo Alto wishes to delegate the authority to execute these agreements and any amendments thereto to the City Manager or designee.
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NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
The City of Palo Alto designates the City Manager or designee as the person authorized to execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements, any amendments thereto , and a ll other documents with Caltrans in order to receive funding for the replacement of the Newell Road Bridge.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________ Assistant City Attorney City Manager
_____________________________
Director of Public Works
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 15, 2023
Report #:2304-1310
TITLE
Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract No.
C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108, for additional Professional Services for the Public Safety Building Capital Improvement Program Project (PE- 15001); CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772)
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment No. 3 to Contract No. C17165953 with RossDrulisCusenbery Architecture, Inc. (Attachment A) to add $687,500, increasing the not to exceed amount to $9,725,108, for Professional Services for the Public Safety Building project and the completed New California Avenue Area Parking Garage project.
BACKGROUND
The New Public Safety Building (PSB) (PE-15001) and New California Avenue Area Parking Garage (Garage) (PE-18000) were among ten key projects included in the 2014 Council Infrastructure Plan. The PSB was identified as the plan’s highest priority project, and its environmental impacts are analyzed with the parking garage project for the purposes of complying with the California Environmental Quality Act (CEQA). The parking garage opened in December 2020. On February 1, 2021, Council approved the award of the construction contract for the Public Safety Building to Swinerton Builders (Swinerton) and authorized execution and delivery of one series of Certificates of Participation (COPs) in an amount not to exceed $120 million to finance PSB construction.1
1 City Council, February 1, 2021; Agenda Item #4, SR #11752, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11752.pdf
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In December 2016, Council authorized a contract with RossDrulisCusenbery Architecture, Inc. (RDC) to provide design and environmental assessment services for the new PSB and the now completed California Avenue Parking Garage (Cal Ave Garage).2 On February 1, 2021, Amendment No. 1 to RDC’s contract replenished the PSB construction administration budget, augmented the Cal Ave Garage construction administration project budget, and replenished the contingency budget in the contract.3 During discussion of that item at the Council meeting, staff recommended redesigning the Multipurpose Room exterior to make it more inviting and open consistent with its planned use as a Community Room.
On August 30, 2021, Amendment No. 2 to RDC’s contract provided additional compensation for multiple design changes related to the Cal Ave Garage and the PSB along with the funds required for the redesign of the Community Room exterior.4
ANALYSIS
Staff recommends the approval of the attached Amendment No. 3. This amendment provides supplemental funding for five significant additional scopes of work and further replenishes the budget for additional services. The five items consist of the following:
1. Extended Construction Contract Duration: The construction contract with Swinerton has been extended via Change Orders to August 25, 2023 and is anticipated to be further extended. The amendment provides funding to cover architectural services during this extension.
2. Coordination for Building Information Modelling (BIM) for construction: The BIM process involves a 3D model of the entire PSB structure to identify and resolve clashes between building system components, structure components, and cladding systems.
3. Accommodation of supply chain issues: The Covid pandemic significantly impacted the orderly progress of the PSB work. COVID-related material shortages, discontinued products, absences of key staff and tradespeople, and unprecedented pricing escalation, all prompted Swinerton to request accelerated review of high priority Requests for Information (RFIs) and submittals so that the project could stay on schedule, subcontracts could be bought out in a timely manner and the project stay on budget.
This approach afforded the contractor the benefit of securing early out-of-sequence long lead items in response to the COVID-related logistic and marketplace challenges. A 2 City Council, December 12, 2016; Agenda Item #6, SR#7417, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2016/id.-7417-public-safety-building-and-cal-ave-garage-design-contract-approval.pdf 3 City Council, February 1, 2021; Agenda Item #4, SR 11752, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11752.pdf
4 City Council, August 30, 2021; Agenda Item #4, SR #12318, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-12318.pdf
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two-tier “Hot” vs. “Standard” RFI review process was added to the construction administration phase additional to the requirements of the Prime Agreement. The subsequent accelerated review and approval of these Hot RFIs required the design team to add staff to support this effort so that “Hot” RFIs would be accommodated without slowing the review of lower priority RFIs.
4. Resolution of construction errors: During construction, RDC supported the city in assessing, documenting and solving a variety of construction issues which arose during the construction process including assistance with plan check comments on design-build aspects of the project (i.e., deferred submittals) and the assessment of construction work which did not conform to the requirements of the Contract Documents. The circumstances for these issues were not anticipated in the original contract and required additional hours on the part of the design team. Some of the costs associated with this category are being back charged to the Swinerton to balance the budget for this item. A partial list of construction issues covered by this item include but are not limited to the following:
a. Placement of defective cast-in-place concrete work by the contractor at levels B1 & B2. This required RDC to expend additional site visits and review time to prepare field reports and issue notices of defective work and attending QA/QC meetings with Swinerton which were not originally budgeted for in RDC’s base contract.
b. Improper installation of the center skylight requiring its complete removal and reinstallation.
c. Off-spec vertical location of the buried emergency fire water supply storage tank requiring the development of multiple design solution alternatives for cost modeling and decision making.
d. Late, missing, or out sequence exterior wall mock-up reviews. e. Provision of exterior tile which did not substantially conform with the approved tile submittal.
5. Storm-related damage assessment: The heavy December 2022 and Winter 2023 storms damaged portions of the ongoing construction work. RDC assessed the extent of various aspects of the storm damage and documented the storm-related damage in field reports and where appropriate, proposed potential solutions. The cost of this damage assessment and resulting repair could be partially covered by the general contractor’s insurance carrier. RDC’s additional services included the assessment of the following storm damage types:
a. Site flooding,
b. Roof top water ponding and water infiltration,
c. Potential water damage to partially installed roof insulation, d. Potential water damage to roofing membrane,
e. Water damage to installed gypsum wall board,
f. Flooding at levels B1 & B2,
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g. Floating and dislodgement of underground storage tanks, h. Sloughing of open site excavations, and
i. Collapse of portions of Jacaranda Lane.
In addition to the above, Amendment No. 3 includes a 10 percent additional services replenishment in the amount of $62,500 to address other potential unanticipated architectural services for the project.
FISCAL/RESOURCE IMPACT
Funding for this contract amendment is available in the Fiscal Year 2023 Adopted Capital Improvement Program budget for the Public Safety Building project (PE-15001). Funding for this amendment is covered by the PSB project contingency and reserves for items that cost less than expected. Approval of this amendment does not increase the overall PSB budget approved by Council when the construction contract was approved in early 2021.
STAKEHOLDER ENGAGEMENT
Public Works has coordinated with key staff from departments whose operations will be dependent upon the PSB.
ENVIRONMENTAL REVIEW
An Environmental Impact Report for the PSB and the New California Avenue Area Parking Garage was prepared and certified by Council on June 11, 2018 (ID #8967), by adoption of Resolution No. 9772.5
ATTACHMENTS
Attachment A: RossDrulisCusenbery Architecture, Inc. Contract C17165953 Amendment 3 APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
5 Resolution 9772, https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso- 9772.pdf?t=40475.53
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AMENDMENT NO. 3 TO CONTRACT NO. C17165953
BETWEEN THE CITY OF PALO ALTO AND
ROSSDRULISCUSENBERY ARCHITECTURE, INC.
This Amendment No. 3 (this “Amendment”) to Contract No. C17165953 (the “Contract” as defined below) is entered into as of May 15 , 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ROSSDRULISCUSENBERY ARCHITECTURE, INC., a California corporation , located at 18294 Sonoma Highway, Sonoma, CA 95476 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively herein as the “Parties”.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of professional design and environmental services for a new Public Safety Building (PSB) and a new Parking Garage, as detailed therein.
B. The Parties entered into Amendment No. 1 to provide an additional Scope of Services under the Contract, increase the Compensation, and extend the Contract term, as detailed therein.
C. The Parties ente red into Amendment No. 2 to provide an additional scope of services under the Contract and to increase the compensation by Two Hundred Eighty -Three Thousand Four Hundred Ten Dollars ($283,410), from Eight Million Seven Hundred Fifty -Four Thousand One Hundred Ninety-Eight Dollars ($8,754,198) to Nine Million Thirty-Seven Thousand Six Hundred Eight Dollars ($9,037,608), as detailed therein.
C. The Parties now wish to amend the Contract in order to provide additional services under the Contract and to increase the compensation by Six Hundred Eighty-Seven Thousand Five Hundred ($687,500), from Nine Million Thirty -Seven Thousand Six Hundred Eight Dollars ($9,037,608) to Nine Million Seven Hundred Twenty-Five Thousand One Hundred Eight D ollars ($9,725,108), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” sha ll mean C ontract No. C17165953 between CONSULTANT and CITY, dated December 12, 2016, as amended by:
Amendment No.1, dated February 1, 2021
Amendment No. 2, dated August 30, 2021
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b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. SECTION 1, “SCOPE OF SERVICES,” of the Contract is hereby amended to read as follows:
“CONSULTANT will perform the Services described in Exhibit “A,” Exhibit “A-1,” Exhibit “A-2,” and Exhibit “A-3” in accordance with the terms and conditions contained in this Agreement, to the reasonable satisfaction of CITY.”
SECTION 3. SECTION 4, “COMPENSATION,” of the Contract is hereby amended to read as follows:
“4.1 Basic Services. The compensation to be paid by CITY to CONSULTANT for performance of the Services (also referred to in this Agreement as the “ Basic Services”) shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSAT ION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Eight Million Seven Hundred Sixty-Five Thousand Five Hundred Eighteen Dollars ($8,765,518).
CONSULTANT agrees to complete all Basic Services, including specified reimbursable expenses, within this amount.
4.2 Additional Services. In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Nine Hundred Fifty-Nine Thousand Five Hundred Ninety Dollars ($959,590) for the performance of Additional Services (as defined below).
The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Nine Million Seven Hundred Twenty -Five Thousand One Hundred Eight Dollars ($9,725,108), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A, Exhibit A-1, Exhibit A-2, and Exhibit A -3. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Proj ect Management). Each Task Order shall be in substantially the same form as Exhibit E, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
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(defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Serv ices in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an a uthorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
4.3 Rate Schedule. The applicable rates and schedule of payment are set forth in Exhibit “C- 1”, entitled “Schedule of Rates” (“Rate Schedule”). CONSULTANT is not entitled to compensation for any Services performed or reimbursement for expenses incurred to the extent that payment would result in a total exceeding the maximum amount of compensation set forth herein.”
SECTION 5. The following exhibits to the Contract are hereby deleted and replaced in the entirety, or added, as indicated below, to read as set forth in the attachments to this Amendment, which are hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “A-3” entitled “SCOPE OF SERVICES, AMENDMENT No. 3,” ADDED.
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT No. 3,” AMENDED, REPLACES PREVIOUS.
b. Exhibit “C” entitled “COMPENSATION, AMENDMENT No. 3 ,” AMENDED, REPLACES PREVIOUS.
SECTION 6. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 7. Incorporation of Rec itals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or Designee
ROSSDRULISCUSENBERY
ARCHITECTURE, INC.
Officer 1
By:___________________________
Name:________________________
Title:_________________________
Officer 2
By:__________________________
Name:_______________________
Title:________________________
Attachments:
Exhibit “A-3”: SCOPE OF SERVICES, AMENDMENT NO. 3 (ADDED) Exhibit “B”: SCHEDULE OF PERFORMANCE , AMENDMENT NO. 3 (AMENDED, REPLACES
PREVIOUS)
Exhibit “C”: COMPENSATION, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS)
DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Principal
Mallory Cusenbery, Principal
Michael Ross, CEO
CEO
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EXHIBIT “A-3”
SCOPE OF SERVICES, AMENDMENT NO. 3
(ADDED)
CONSULTANT will provide the Services detailed in this Exhibit “A -3” in addition to the Services detailed under Exhibit “A”, Exhibit “A-1”, and Exhibit “A-2” of this Agreement.
Additional Scope of Work related to Task B.5 (PSB Construction Administration and Closeout):
a. Perform extended Construction Administration services to cover extra days granted to the General Contractor through September 30, 2023
b. Perform additional construction phase Building Information Modeling (BIM) coordination with the General Contractor
c. Accommodate increased review of material substitutions and accelerated review of submitted products to mitigate excessive instances of specified prod ucts being discontinued and products having extremely long procurement times due to supply chain impacts
d. Resolve construction issues due to General Contractor errors where deductions to the construction contract were made to offset design team costs e. Assist with storm-related damage assessments due to the extreme weather events that occurred near the end of 2022 and in early 2023.
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EXHIBIT “B”
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3
(AMENDED- REPLACES PREVIOUS)
Consultant must perform the Services to complete each milestone within the date specified below, measured from the date of City’s issuance of the Notice to Proceed (NTP) with the Services. The time to complete each milestone may be increased or decreased by mutual written agreement of Consultant and City so long as all Services are completed within the Term of the Agreement.
Consultant must provide a detailed schedule of Services consistent with the schedule below within 2 weeks of receipt of the notice to proceed.
Milestones Target Completion Date
Task A.1: PSB Preliminary Design - CEQA / EIR December 2017 Task B.1: PSB Schematic Design September 2018
Task B.2: PSB Design Development March 2019
Task B.3: PSB Permit Set / Construction Documents December 2019 Task B.4: PSB Project Bidding and Award September 2020 Task B.5: PSB Construction Administration and Closeout September 2023 Task C.1: Garage Preliminary Design – CEQA / EIR December 2017 Task C.2: Garage Schematic Design February 2018
Task C.3: Garage Design Development March 2018
Task C.4: Garage Permit Set / Construction Documents May 2018 Task C.5: Garage Project Bidding and Award October 2018 Task C.6: Garage Construction Administration and Closeout August 2020 Task E.2: PSB Threat Assessment (Predesign) January 2018 Task E.4: PSB Programming Services for Technical Systems January 2018 Task E.6: PSB Fixtures, Furniture and Equipment Design and Procurement Documents
March 2020
Task E.7: PSB Commissioning (Cx) June 2023
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EXHIBIT “C”
COMPENSATION, AMENDMENT NO. 3
(AMENDED, REPLACES PREVIOUS)
The CITY agrees to compensate the CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule belo w, or as further specified in each Task Order approved by the CITY pursuant to this Agreement .
Compensation shall be calculated based on the hourly rate schedules attached as Exhibit C-1 up to the not-to-exceed budget amount for each task set forth below.
CONSULTANT shall perform the tasks and categories of work in 3 phases as outlined and budgeted below. The CI TY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation does not exceed the amounts set forth in Section 4 (Not to Exceed Compensation) of this Agreement. Each phase requires a separate written Notice-to-Proceed (NTP). Phases 2 and 3 will be authorized at CITY’s discretion, and upon approval of environmental review and budget for the project.
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BUDGET SCHEDULE NOT TO EXCEED AMOUNT
BASIC SERVICES (TASK) Phase 1 Phase 2 Phase 3
Task A.1: PSB Preliminary Design
- CEQA / EIR $242,696
Task B.1: PSB Schematic Design $495,700
Task B.2: PSB Design
Development $856,210
Task B.3: PSB Permit Set /
Construction Documents
$2,966,336
Task B.4: PSB Project Bidding and
Award
$90,127
Task B.5: PSB Construction
Administration and Closeout
$2,050,973
Task C.1: Garage Preliminary
Design – CEQA / EIR $121,347
Task C.2: Garage Schematic
Design $142,607
Task C.3: Garage Design
Development $190,143
Task C.4: Garage Permit Set /
Construction Documents $528,367
Task C.5: Garage Project Bidding
and Award $19,014
Task C.6: Garage Construction
Administration and Closeout $512,220
Task E.2: PSB Threat Assessment
(Predesign) $47,634
Task E.4: PSB Programming
Services for Technical Systems $34,164
Task E.6: PSB Fixtures, Furniture
and Equipment (FF&E) Design
and Procurement Documents
$287,622
Task E.7: PSB Commissioning (Cx) $27,173
Additional Excess Insurance
Coverage $25,000
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Architecture, Inc.
Contract C17165953
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BASIC SERVICES (TASK) Phase 1 Phase 2 Phase 3 ROW TOTALS TOTAL BASIC SERVICES $2,155,501 $3,891,466 $2,590,366 $8,637,333 REIMBURSABLES $128,185 $128,185
SUBTOTAL (BASIC SERVICES &
REIMBURSABLES) $2,283,686 $3,891,466 $2,590,366 $8,765,518 ADDITIONAL SERVICES $637,090 $322,500 $959,590
TOTAL NOT-TO-EXCEED AMOUNT $2,920,776 $3,891,446 $2,912,866 $9,725,108
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or overtime, word processing, photocopying, in - house printing, insurance and other ordinary business expenses are included within the scope of payment for Services and are not reimbursable expenses. CITY will reimburse CONSULTANT for the following expenses at cost, provided that the expenses were reasonably and necessarily incurred solely for providing the Services:
A. Travel outside t he San Fr ancisco Bay Area, in cluding transportation and meals, will be reimbursed at actual cost subject to limits of the CITY’s policy for reimbursement of travel and meal expenses for CITY employees.
B. Long distance telephone service char ges, cellu lar phone service charges, ove rnight delivery, facsimile transmission and postage charges are reimbursable at actual cost.
All requests for payment of expenses must be accompanied by appropriate documentation of the claimed expenditure, such as written receipts. Any expense anticipated to be more than $500 must be approved in writing in advance by the CITY’s Project Manager.
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Amendment 3
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: May 15, 2023
Report #:2303-1200
TITLE
Amendment No. 5 to the Agreement between the City of Palo Alto and the Friends of the Junior Museum and Zoo for Mutual Cooperation and Support to Extend the Agreement through June 2024 and Accept a $75,000 Grant for a Community Engagement Specialist; CEQA status – not a project
RECOMMENDATION
Staff recommends the City Council approve and authorize the City Manager to execute Amendment Number 5 to the Agreement between the City of Palo Alto and the Friends of the Palo Alto Junior Museum and Zoo for mutual cooperation and support (Agreement) (Attachment A) and allow the City Manager to approve future amendments that fall within statutory limits for cost and term length. This amendment extends the Agreement through June 2024 and gives the City a $75,000 grant to fund a Community Engagement Specialist position.
BACKGROUND AND ANALYSIS
The Friends of the Palo Alto Junior Museum and Zoo (Friends) have played an integral role in the support and operation of the Palo Alto Junior Museum and Zoo (JMZ) since their inception in 1962. In 2002, the Friends approached the City of Palo Alto (City) to create a public-private partnership with the intent to raise the capital funds required to renovate the JMZ facility.1 Since then, the Friends continue to be an active advocate for the JMZ and provide annual and capital support for JMZ programs.
In November 2007, the partnership between the City and the Friends was strengthened via a written agreement that provided the Friends a greater role in providing input on program planning and the City a more active role with the Friends. The latter was accomplished by the 1 City Council, December 9, 2002; SR #442:02,
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JMZ Manager joining the Board as an ex officio member and the City Council assigning a liaison to the Friends Board. The agreement provides the framework for City staff to work in unison with the Friends Board to realize mutual goals.
The first Agreement with the Friends began in 2007 and has been amended every three years.
The amendments were approved as follows:
•Amendment No.1, dated December 3, 2012
•Amendment No.2, dated January 4, 2017
•Amendment No.3, dated April 30, 2020
•Amendment No.4, dated July 1, 2020
The Parties now wish to amend the Agreement to extend the term through June 30, 2024. This year, the terms are largely the same but for the addition of a clause to enable a temporary part- time City staff position funded by the Friends. As part of the Parties’ activities for July 1, 2022 through June 30, 2024, the Friends shall give a one-time grant of $75,000 to the City to fully fund a part-time community engagement specialist for a two-year term (City classification: Staff Specialist, SEIU-H).
This amendment also authorizes the City Manager to approve and sign future amendments to this Agreement if they are within the existing limits set in the Municipal Code at PAMC 2.30.210 ($85,000 per fiscal year or less and term of 3 years or less). Otherwise, the municipal code requires that amendments to this MOU be approved by Council, even if only to extend the term of the MOU beyond an additional six months.
This MOU would be categorized as a Joint Venture under the City’s Public/Private Partnership Policy.2
FISCAL/RESOURCE IMPACT
The Friends grant to the City will fund a Staff Specialist position at 0.48 FTE for two years. This classification has an average hourly rate of $37.42. If approved by the Council, the recognition of revenue, salary expense, and FTE will be incorporated as a part of the FY 2024 Operating Budget Process as an amendment to the Proposed Budget for FY 2024.
STAKEHOLDER ENGAGEMENT
Staff engaged with the Friends of the JMZ to develop the Amendment to the Agreement. 2 However, this MOU does not create a “Partnership” or “Joint Venture” under California law as it relates to business entities.
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ENVIRONMENTAL REVIEW
Approval of this amendment is not a project under the California Environmental Quality Act.
ATTACHMENTS
Attachment A: Amendment Number 5 to the Agreement between City of Palo Alto and the Friends of the Junior Museum & Zoo
APPROVED BY:
Kristen O'Kane, Community Services Director
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: May 15, 2023
Report #:2303-1065
TITLE
Approval of Professional Services Agreement Contract Number S23184570 with Foster & Foster Consulting Actuaries, Inc. in an Amount Not to Exceed $147,180 to Provide Actuary Services for a Period of Five Years: CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Contract No. S23184570 (Attachment A) with Foster & Foster Consulting Actuaries, Inc. to provide Actuary Services for a term of five years and a total amount not-to- exceed $147,180, including $133,800 for basic services and $13,390 for additional services.
BACKGROUND
The City requires actuarial services for the biennial valuation related to its Other Post- Employment Benefits (OPEB) and annual Governmental Accounting Standards Board 75 Accounting and Financial Reporting for OPEB (GASB 75), as required by GASB. On February 6, 20231, the Council adopted the City’s Retiree Benefit Funding Policy which requires reporting every four years of the City’s progress towards the target of reaching a 90% funded status by FY 2036. In addition, an analysis of retiree benefits is required on an ad hoc basis to support labor negotiations and financial planning work performed by staff.
Bartel & Associates has been the City’s actuary since 2011 and was selected through a competitive solicitation. Bartel and Associates was acquired by Foster and Foster Consulting Actuaries, Inc. in 2022. The contract with Foster and Foster expired in February 2023. 1 City Council, February 6, 2023; Agenda Item #
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ANALYSIS
The use of actuary is necessary due to complexity of calculations and to provide expertise in comprehensive discussions with Finance Committee and City Council relating to pension liabilities. The following tasks are included in the attached contract.
Project Description
(a) OPEB Benefits Valuation
Determination of the City’s OPEB or retiree medical benefit actuarial liability on a biennial basis, Actuarially Determined Contributions (ADC), and sensitivity analysis. (b) GASB 75
Prepares on annual basis the accounting and financial reports for OPEB purposes, including note disclosures, required summary information, and allocation per fund, in compliance with GASB 75.
(c) CalPERS Review and Rate Projections
Prepares a comprehensive analysis of the CalPERS Pension Valuations and impact of changes in in CalPERS actuarial assumptions, including but not limited to funding policy, economic and demographic assumptions, and other risk mitigation strategies. (d) Other As-Needed Actuarial Analyses
Actuarial analyses related to labor negotiations, CalPERS pension valuations, or long-term financial analyses. Additionally, the consultant may require attending arbitration hearings, Finance Committee meetings, Council meetings, etc.
Summary of Competitive Solicitation Process
On November 8, 2022, a request for proposal (RFP) for Actuarial OPEB Valuation, GASB 75 and CalPERS Review and Rate Projections was posted on Planet Bids, the City’s eProcurement portal, as a multi-award RFP. The City received only one proposal which is from our current actuarial consultant, Foster and Foster.
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Table 1: Summary of Request for Proposal
Project Description Actuarial OPEB Valuation & GASB 75 / 184570 Proposed Length of Project 6 years
Number of Vendors Notified 1,115
Number of Proposal Packages Downloaded 16
Total Days to Respond to Proposal 36 calendar days
Pre-Proposal Meeting Non-Mandatory
Number of Proposals Received 1
Proposal Price Range $133,800 plus provision for additional services
Public Link to Solicitation PlanetBids Vendor Portal2
An evaluation committee consisting of three City staff members from the Administrative Department evaluated the proposal according to the criteria identified in RFP. Based on the proposal staff decided that Foster & Foster will continue to provide the abovementioned services due to firm’s demonstrated experience and expertise with OPEB valuation and comprehensive knowledge of GASB’s requirements for reporting of these employee benefits.
Compared to the last six-year agreement with Foster & Foster (previously Bartel and Associates), the attached five-year agreement assumes an overall 36% decrease, or $82,820, mainly due to reduction of additional pension forecasting and analysis that was performed for the Retirement Benefit Policy and from three to two biennial actuarial valuation of OPEB. The cost for the biennial valuation has increased by 14%, from $37,000 to $42,250 since the last biennial valuation done in 2021.
FISCAL/RESOURCE IMPACT
This action approves professional services for contract costs that are included in Administrative Services Department FY 2023 General Fund Adopted Budget. No Council action is needed to adjust the budget.
STAKEHOLDER ENGAGEMENT
Administrative Services was consulted and coordinated with internally on selection of this recommended firm.
ENVIRONMENTAL REVIEW
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Council action on this item is not a project as defined by CEQA because an award of a contract for actuarial services is a continuing administrative or maintenance activity. CEQA Guidelines section 15378(b)(2).
ATTACHMENTS
Attachment A – Foster and Foster Consulting Actuaries, Inc. Contract S23184570 APPROVED BY:
Kiely Nose, Assistant City Manager
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CITY OF PALO ALTO CONTRACT NO. S23184570
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND FOSTER AND FOSTER CONSULTING ACTUARIES, INC.
This Agreement for Professional Services (this “Agreement”) is entered into as of the 14th day of March, 2023 (the “Effective Date”) , by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and FOSTER AND FOSTER CONSULTING ACTUARIES, INC., a Florida corporation, located at 411 Borel Avenue, Suite 620, San Mateo, CA 94402 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:
RECITALS
A. CITY intends to prepare a bi-annual actuarial valuation of its Other Post-Employment Benefits (OPEB), Government Accounting Standards Board ( GASB) 75 accounting information and CalPERS Review and Rate Projection (the “Project”) and desires to engage a consultant to provide an actuarial valuation of the City’s OPEB in compliance with applicable GASB and actuarial requirements. in connection with the Project ( the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represent s that its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.
CITY may elect to, but is not required to, authorize on- call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation).
CONSULTANT shall provide on- call Services only by advanced, written authorization from CITY as detailed in this Section. On -call Services, if any, s hall be authorized by DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1 entitled “PROFESSIONAL SERVICES TASK ORDER”.
Each Task Order shall contain a specific scope of s ervices, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through March 30, 2028, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably p rompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Thirty- Three Thousand, Eight Hundred Dollars ($133,800.00). T he hourly schedule of rates , if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Thirteen Thousand Three Hundred Eighty Dollars ($13,380.00) for the performance of Additional Services ( as defined below). The total DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Hundred Forty Seven Thousand One Hundred Eighty Dollars ($147,180.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4 .
CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the S ervices performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this A greement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change or der markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the S ervices, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT . The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the C ity Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties.
SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.
CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Drew Ballard as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day -to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s P roject Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.
CITY’s Project Manager is Rocelyn Fernando, Administrative Services Department, Accounting Division, 250 Hamilton Avenue, 4th Floor, Palo Alto, CA, zip code: 94301, Telephone:(650) 329- 2301 CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate P roject Manager from time to time.
SECTION 1 4. OWNERSHIP OF MATERIALS . A ll work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the C ity Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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Scope of Services.
SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.
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18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT , CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSUL TANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to C ONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination , CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT wi ll deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s S ervices DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT furt her covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an off icer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
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from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregna ncy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY ’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT , at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code , as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This S ection shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. ( Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.
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28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentia lity obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings , either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement wi ll remain in full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
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CONTRACT No. S23184570
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
_____________________
City Manager
APPROVED AS TO FORM:
______________________
City Attorney or designee
FOSTER & FOSTER CONSULTING
ACTUARIES, INC.
By:
Name:
Title:
By:
Name:
Title:
DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Mary Elizabeth Redding
Senior Consulting Actuary
Jonathan Davidson
Chief Legal Officer
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.
A. Project Purpose
CONSULTANT shall prepare bi-annual actuarial valuation of the City’s Other Post- Employment Benefits (OPEB), Government Accounting Standard Board (GASB) 75 accounting information, and CalPERS review and rate projections. The last OPEB valuation was prepared as of June 30, 2021. Additionally, the City requires as‐needed actuarial services for labor negotiations, CalPERS projections, or other financial analyses.
B. Other Post‐Employment Benefits Valuation
CONSULTANT shall provide actuarial valuation of the City’s OPEB in compliance with applicable GASB and actuarial requirements. Specifically, the consultant shall provide:
1. A determination of the City’s retiree medical benefit actuarial liability on a biannual basis starting with the first valuation as of June 30, 2023.
2. Within 60 days after receipt of the necessary payroll and other information from CITY, the CONSULTANT will meet with CITY to discuss the OPEB liability and funding level options and will recommend actuarial and economic assumptions appropriate for the City based on plan benefits, anticipated funding levels, and the current economic environment.
3. The required annual total contribution amounts needed to amortize the cost over the amortization period selected.
4. A breakdown of this liability by the following:
• Age (<65 v. >65)
• Benefit Group (Tier)
• Fund
• Labor Group
• Miscellaneous v. Safety employees
• Normal Costs v. Unfunded Actuarial Accrued Liability (UAAL) Amorti zation • Liability and Normal Cost by Bargaining Unit (7 units) • Current Employees/Retired Employees and Dependents (survivors) (2 groups)
5. A description of the actuarial basis and assumptions used in the valuation.
6. A description of assumption and other changes since the last valuation.
7. A written executive summary describing the results of the valuation.
8. Sensitivity Analysis
• Investment return analysis using all CalPERS Trust options • Discount Rate
• Amortization Period
• Implied Subsidy
• Other analyses suggested by proposer
9. Preparation of the California Employers’ Retiree Benefit Trust (CERBT) Fund documentation and certifications needed by CITY to send to CalPERS.
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CONSULTANT shall perform the following activities to complete the bi‐annual actuarial review of the City’s OPEB programs:
1. Meet with City representatives including Finance Committee and/or City Council, as well as staff, at least three to four times. The preliminary meeting shall be conducted to discuss and to understand assumptions and methods before the study is undertaken. In addition, at the first meeting, a project schedule will be agreed upon. The subsequent meeting will be held to explain and to present the results of the project. CONSULTANT will then attend Finance Committee and/or City Council meetings to present results.
2. Submit a draft report for review and approval prior to submission of final report
3. Prepare a final written report summarizing conclusions and documenting the analysis.
4. The report should include exhibits summarizing all appropriate results for two fiscal years (i.e. fiscal year ending June 30, 2023 and projected June 30, 2024). The report should also include information analyzing the impact of any changes in assumptions and methodology as well as plan experience relative to what would have been expected to occur during the preceding two years.
C. GASB 75 Reports
In addition to the OPEB valuation work described in Section B, annual reports providing the accounting information required under GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (GASB 75). CONSULTANT shall prepare GASBS 75 reports on annual basis. Each report shall include all actuarial information required for GASBS 75:
1. Note Disclosures
2. Required Summary Information (RSI)
3. Supporting Exhibits, including the Crossover Test
4. Journal Entries
5. An allocation of OPEB amounts by Fund, and by Department within the General Fund.
6. Benchmark survey comparing the City’s GASB 75 information with other agency GASB 75 plan studies prepared by Foster and Foster.
D. CalPERS Review and Rate Projections
In addition to the work above, the CITY will require a comprehensive analysis of CalPERS Pension Valuations and the impact of changes in CalPERS actuarial assumptions, including but not limited to funding policy, economic and demographic assumptions, and other risk mitigation strategies. Specifically, the consultant shall provide:
1. CalPERS Review
A comprehensive review of the City’s CalPERS program:
• Review historical actuarial valuation reports,
• Summary of historical information for the Miscellaneous and Safety plans, • Participant demographic information,
• Funded status
• Discussion of option the City has to pay down the unfunded liability.
2. Contribution projections include projected rates with and without employee cost sharing.
3. Additional projections using a 5.3% discount rate for all years or such other rate as specified by the City. The contribution projection will include normal cost and unfunded liability DocuSign Envelope ID: 7167E2CB-6C0F-4E12-B6CC-88696CEC6CA4 Item 10
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payments, and show employee cost sharing separately.
4. Sensitivity analysis and Pension Funding Policy review:
• Review of CalPERS asset allocation, annual inflation, and discount rate • Recommend factors for sensitivity analysis
• Perform contribution and funded status projections for selected factors • Analysis of the impact on funding goals outlined in the City's Pension Funding Policy.
5. Pension Trust analysis:
• Trust projections based on the City’s Pension Funding Policy • Evaluate future trust contribution policy, including one- time contributions made to the Pension Trust when excess funding is available at year-end. • Compare savings for contributing Pension Trust assets to CalPERS vs. retaining them in the Section 115 trust, including using the Pension Trust for Additional Discretionary Payments, a conceptual "fresh start" to consolidate and re-amortize bases, and other funding strategies.
6. Other As‐Needed Actuarial Analyses
Throughout the contract period, CITY may require additional actuarial analyses related to labor negotiations, CalPERS pension valuations, or long‐term financial analyses.
Additionally, CITY may require the CONSULTANT to attend arbitration hearings, Finance Committee meetings, Council meetings, etc.
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. ( AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Days/Weeks (as specified below)
from NTP
1. Biennial OPEB (retiree medical plan)
actuarial valuations reports as of June
30, 2023 and 2025 with detailed
analysis and results breakdowns and
projections as outlines in the scope of
services. Video meetings with Finance
Committee and City Council
As directed by CITY Project Manager within the
term of the agreement.
2. GASB 75 accounting and allocation
by Fund and Department as of June
30, 2023-June 30, 2027
As directed by CITY Project Manager within the
term of the agreement.
3. CalPERS Review and Rate
Projections including up to 2 meetings
[via Zoom] with City staff, Finance
Committee and/or City Council
As directed by CITY Project Manager within the
term of the agreement.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as E xhibit C-1 up to the not to exceed budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below , provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services , any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this /these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK NOT TO EXCEED AMOUNT
Task 1
Biennial OPEB (retiree medical plan) actuarial valuations reports as of June 30, 2023 and 2025 with detailed analysis and results breakdowns and projections as outlines in the scope of services.
- Video meetings with City staff to review the
valuation results and Finance Committee
$84,500
Task 2
( - GASB 75 accounting and allocation by Fund and
Department as of June 30, 2023-June 30, 2027 )
$23,300
Task 3
(- CalPERS Review and Rate Projections, including
up to 2 meeting [via Zoom] with City staff, Finance
Committee and/or City Council)
$26,000
Sub-total for Services $133,800.00
Reimbursable Expenses (if any) $0
Total for Services and Reimbursable Expenses $133,800.00 Additional Services (if any, per Section 4) $13,380.00, Maximum Total Compensation $147,180.00
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REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time /overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in -house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section , will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
A. Travel outside the San Francisco Bay A rea, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.
All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST
AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM
OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY
CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569
III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL:
HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569
OR
HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 15, 2023
Report #: 2301-0866
TITLE
Authorization for approval of a Blanket Purchase Order with Granite Rock Company in the Amount of $500,000 Annually for a Three-Year Term, beginning July 1, 2023 through June 30, 2026, for a Total Not-to-Exceed Amount of $1,500,000 for Hot Mix Asphalt Materials for Public Works and Utilities Departments; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that Council authorize the City Manager or their designee to execute a blanket purchase order with Granite Rock Company for Hot Mix Asphalt materials in the not-to-exceed amount of $500,000 annually, for a total not-to-exceed amount of $1,500,000 over a three-year term from July 1, 2023 to June 30, 2026.
BACKGROUND
The Public Works and Utilities departments have working groups that use Hot Mix Asphalt.
Public Works uses Hot Mix Asphalt for performing repairs on damaged sections of roadway, sidewalk, and bicycle paths, and for projects designed to ensure safety and durability of streets as measured by the pavement condition index (PCI) throughout the City. Utilities typically uses Hot Mix Asphalt for permanent trench restoration and roadway resurfacing. Cold Mix-Cut Back Asphalt, which is supplied to through a separate blanket purchase order, is typically used for temporarily backfilling trenches and ramping up metal trench plates.
ANALYSIS
There are two primary methods of manufacturing Hot Mix Asphalt, either using a batch plant or a drum plant. A batch plant allows City crews to specify the mix needed for each unique job. A drum plant does not have the ability to mix asphalt to order, and City crews are forced to use whatever mix is being produced at the drum plant on any given day. The City requires that the primary supplier of asphalt produce their product in a batch plant, as this affords the various crews the most flexibility when it comes to scheduling and completing jobs throughout the City. Staff also requires that the plant be located within 10 miles of Palo Alto’s Municipal Item 11
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Services Center (MSC). The proximity of the plant is important due to the limited shelf life of Hot Mix Asphalt; transporting hot material over an extended distance will impact the quality of the Hot Mix Asphalt (HMA) as well as City repaving projects. With the importance of the City’s PCI score, using the best materials for the job is imperative.
A Request for Quotation (RFQ) for Hot Mix Asphalt was sent to three potential vendors and posted on Planet Bids. Quotes were received from Granite Rock Company and one other company. The other company was deemed non-responsive because they were unable to provide all the materials requested in the Scope of Work. Granite Rock Company met all the requirements, including having a plant located less than 10 miles away, in Redwood City.
Table 1: Summary of Bid Process:
PlanetBids Link: https://pbsystem.planetbids.com/hub/bm/bm-detail/98552#bidInformation Bid Name/Number
Hot Mix Asphalt Materials
RFQ #185945
Proposed Length of Project Three years
Total Days to Respond to Bid 17
Pre-Bid Meeting No
Number of Responsive Bids Received: 1
Base Bid Price Range $1,499,505
The unit prices in the bid have increased significantly compared to the fixed prices for Fiscal Years 2021-2023 under the current blanket purchase order. Under the recommended blanket purchase order, the cost of materials has increased by roughly 35%, attributed to inflation and overall rise of cost in commodities. Due to this increase in cost, staff recommends a total blanket purchase order in the amount of $500,000 annually for a total not-to-exceed amount of $1,500,000, whereas the existing blanket purchase order had a total not-to-exceed amount of $1,200,0001. Table 2 compares the total annual contract prices for Fiscal Years 2023 and 2024. 1 City Council, November 2, 2020; Agenda Item #2 ; SR#11578, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11578.pdf
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Table 2: Contract Price for Fiscal Year 2023 and 2024
Approx.
Qty. (Tons) Description
FY23
Unit
Price
FY24
Total
Price
FY23
Unit
Price
FY24
Total
Price
1,000 Asphalt Concrete ¾", medium $98.40 $98,400 $124.60 $124,600 2,000 Asphalt Concrete, ½", fine $101.40 $202,800 $125.78 $251,560 100 Asphalt Concrete, 3/8”, fine $111.90 $11,190 $128.45 $12,845 300 Asphalt Concrete, ¼”, fine $112.90 $33,870 $129.55 $38,865 100 Asphalt Concrete, Sheet Asphalt $124.40 $12,440 $130.65 $13,065 1,000 Track Coat, SS-1H $10.45 $10,450 $8.90 $8,900
Total $369,150 $499,835
Staff recommends that Council authorize the blanket purchase order for Hot Mix Asphalt with Granite Rock Company as the primary supplier. Granite Rock Company has been the supplier under previous blanket purchase orders, and staff has consistently received product that met both state and the City’s standards for consistent temperature and aggregate size.
FISCAL/RESOURCE IMPACT
Funding for the purchase of material under this blanket order is available in the Fiscal Year 2023 Adopted Public Works and Utilities Department operating budgets. Staff recommends that Council approve the not-to-exceed amount of $500,000 per year; however, actual spending is dictated by need and will be controlled by each department. The bid table that Granite Rock Company submitted represents a menu of available asphalt products with unit pricing2. Utilities and Public Works estimate annual needs of $135,000 and $365,000, respectively. Staffing levels and planned work deferments may impact those estimates and will be considered before expending the funds. Funding for contract years two and three are contingent upon Council approval of each department’s budget for each subsequent year.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement for the recommended blanket order was limited to the procurement process for reaching out to prospective bidders.
2 Granite Rock Co. Bid Form; https://www.cityofpaloalto.org/files/assets/public/public-works/public- services/contracts/attachment-a-granite-rock-co.pdf
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ENVIRONMENTAL REVIEW
This purchase is exempt from the California Environmental Quality Act under the CEQA guidelines (Sections 15061 and 15301(c)).
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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City Council
Staff Report
From: City Manager
Report Type: PUBLIC HEARING
Lead Department: Administrative Services
Meeting Date: May 15, 2023
Report #:2303-1184
TITLE
PUBLIC HEARING: Adoption of a Resolution Providing that the City will Not Levy Assessments for the Downtown Business Improvement District for FY 2024.
RECOMMENDATION
Staff recommends that Council hold a public hearing and adopt a resolution declining to levy assessments for Fiscal Year 2024 for the Downtown Business Improvement District (BID).
BACKGROUND
The Palo Alto City Council established the Palo Alto Downtown Business Improvement District (BID) in 2004 pursuant to the California Parking and Business Improvement Area Law to maintain economic vitality and physical maintenance of the Palo Alto Downtown business district. The Council appointed the Palo Alto Downtown Business and Professional Association (PADBPA), a non-profit corporation, as the advisory board and administrator of the BID. PADBPA, acting through its independent Board of Directors, has historically advised the Council on the method and basis for levy of assessments in the BID and has managed the expenditure of revenues derived from the assessments.
In March of 2020, public health measures in response to the COVID-19 pandemic resulted in a sharp contraction of business activity. In May of 2020, Council refunded FY 2020 assessments considering the pandemic-related challenges that Downtown businesses were facing. At approximately the same time, organizational changes were occurring at PADBPA. As a result of these developments, on June 30, 2020, the City allowed the contract with PADBPA to expire.
With the economic impacts of COVID-19 continuing to effect local businesses through fiscal years 2021 and 2022, the Council also declined to levy assessments on downtown businesses for those years. No BID-funded activities have occurred in these years.
On March 1, 2022 the Finance Committee discussed options for the FY 2023 Business Registry Item 12
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Certificate (BRC) and BID processes (CMR 13902 1). The Committee reviewed three options for the BRC and BID and forwarded their recommendation to the City Council on April 4, 2022, CMR 139012, to restore the BRC in the 2022-2023 collection timeframe, using the established structure used in pre-pandemic years, while continuing the pause of BID assessments again in FY 2023. The Palo Alto City Council directed Staff to proceed with this recommendation, and the City Council approved a resolution to not levy an assessment for FY 2023.
Due to ongoing discussions between PADBPA, the Chamber and the City, it is again requested that the BID assessment be paused in FY 2024. On April 24, 2023, Council adopted a resolution of intent to not levy assessments for the Palo Alto Downtown Business Improvement District in FY 2024 and setting a public hearing for May 15, 2023 (CMR 11823).
ANALYSIS
The attached proposed resolution will result in no collection of BID assessments for FY 2024. No BID-funded activities will occur in FY 2024. This public hearing is held to afford interested parties to provide input on the proposal to decline to levy BID assessments in FY 2024. City staff are currently working on developing alternatives for a new streetscape design on University Avenue, in consultation with stakeholders and the community more broadly. This work is expected to generate a plan that will require businesses in the vicinity to invest in capital and potentially operating costs for implementation. Since it is not clear at this point what structure would be most appropriate for such investment, the BID is a valuable framework but not necessarily structured as will be needed. The entities therefore request another year to continue exploring options for the BID including input from organizations within the BID.
During the FY 2024 period staff will work with representatives from PADBPA and the Chamber to do outreach to businesses to help identify priority projects that the BID assessment can go towards and look at different structures for management of the BID.
FISCAL/RESOURCE IMPACT
The BID is set up as a separate fund within the City’s accounting system. In recent years, the BID has required a General Fund subsidy as collected assessments fell short of the costs of operating 1 03/02/2022 Finance Committee, Review the Business Registry Certificate and Business Improvement District FY 2023 Processes and recommendation to City Council on the Renewal Processes https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220301/20220301pfcs-linked.pdf
2 04/04/2022 City Council, Approve Finance Committee Recommendation for FY 2023 to (a) Return to the Customary Pre-Pandemic Business Registry Certificate Requirement and Fee, and (b) Pause for One Year the Downtown Business Improvement District Assessment Program https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-agendas- minutes/2022/20220404/20220404pccsmamendedlinked1.pdf
3 4/24/2023 Adoption of a Resolution of Intent to Not Levy Assessments for the Palo Alto Downtown Business Improvement District (BID) in FY 2024 and Setting a Public Hearing for May 15, 2023 https://portal.laserfiche.com/Portal/DocView.aspx?id=65927&repo=r-704298fc&searchid=bed66c02-fc83-4866-8a2b-a473eb648021 Item 12
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the BID. The subsidy amounted to $70,000 in FY 2020. Historically, the City acts as the collection agent for BID revenues and reimburses PADBPA’s expenses after receipt and verification of invoices. With the BID on pause, an estimated $80,000 will not be collected and no BID business activities will be provided. In the past business activities have included the streetlight banner program, Lytton Plaza enhancements, and summer concerts among others.
Additional staff resources include time from the City Manager’s Office and Administrative Services Department to provide oversight to the BID, administer the contract with Avenu Insights (the third-party administrator for both BID and BRC) liaise with stakeholders, and prepare the annual reauthorization.
STAKEHOLDER ENGAGEMENT
Staff has met and coordinated with members of PADBA and the Chamber of Commerce in preparation of these recommendations. In FY 2024 staff will work with these entities to develop options for a new management agreement for the BID.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the proposed resolution is a City fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).
ATTACHMENTS
Attachment A: Resolution Declining to Levy Assessments in the Downtown Palo Alto Business Improvement District for Fiscal Year 2024
APPROVED BY:
Kiely Nose, Assistant City Manager
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*NOT YET APPROVED*
1 270_20230425_ts24
Resolution No. ____
Resolution of the Council of the City of Palo Alto Providing that No Levy of Assessments be Made Against Businesses Within the Downtown Palo Alto Business Improvement District for Fiscal Year 2024
R E C I T A L S
A. The Parking and Business Improvement Area Law of 1989 (the "Law"), codified at California Streets and Highways Code Sections 36500 et seq., authorizes the City Council to levy an assessment against businesses within a parking and business improvement area which is in addition to any assessments, fees, charges, or taxes imposed in the City.
B. Pursuant to the Law, the City Council adopted Ordinance No. 4819 establishing the Downtown Palo Alto Business Improvement District (the "District") in the City of Palo Alto.
C. The City Council, by Resolution No. 8416, appointed the Board of Directors of the Palo Alto Downtown Business & Professional Association (“PADBPA”), a California nonprofit mutual benefit corporation, to serve as the Advisory Board for the District (the "Advisory Board").
D. Beginning in March of 2020 and continuing through the present, Downtown businesses have been substantially impacted by the COVID- 19 pandemic, the public health measures taken to reduce the spread of the virus, and the r esulting statewide economic contraction. In recognition of these impacts, the City Council refunded fiscal year 2020 BID assessments and declined to levy assessments in fiscal years 2021, 2022, and 2023.
E. As California emerges from the pandemic, local businesses are experiencing additional impacts from changes in on -site and remote work patterns and other developments in the local economy. In addition, PADBPA is experiencing organizational changes.
F. In recognition of the challenges co ntinuing to effect downtown businesses and understanding the need for a new direction on BID management, the City Council has determined not to levy BID assessments for fiscal year 2024 (July 1, 2023 through June 30, 2024). As a result of not making assessments, no BID-funded activities will occur in fiscal year 2024.
G. On April 24, 2023 the City Council adopted Resolution No. 10104, which declared its intention not to levy assessments against D owntown businesses for Fiscal Year 202 4 and scheduled a public hearing for May 15, 2023 on the proposed decision to refrain from making assessments.
H. On May 15, 2023 the City Council held a duly noticed public hearing at which all interested persons were afforded the opportunity to hear and be heard.
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Downtown Palo Alto
Business Improvement
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2024
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NOW THEREFORE THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS:
SECTION 1. The Council hereby adopts the above Recitals as findings of the Council.
SECTION 2. The City Council does hereby determine not to levy assessments against businesses within the Downtown Palo Alto Business Improvement District for Fiscal Year 2024.
SECTION 3
. The Council finds that the adoption of this Resolution does not meet the definition of a project under Section 21065 of the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Administrative Services
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: May 15, 2023
Report #:2304-1281
TITLE
Update, Discussion, and Potential Direction regarding State and Federal Legislation
RECOMMENDATION
Staff recommends that the City Council receive an update on State Legislation and provide feedback on bills to monitor or take direction on. This action item is a follow-up discussion to the April 3, 2023 discussion.
BACKGROUND AND ANALYSIS
On April 3, 20231, the City Council received a brief legislative update from Townsend Public Affairs (Townsend) related to recent actions in Sacramento and Washington, D.C. and asked Townsend questions of interest. Specific State bills of interest to decide to support or oppose was not discussed by City Council due to meeting time constraints. Staff has included an updated memo from Townsend Public Affairs (Attachment A) with the current status of bills organized in the same way as the last memo.
The memo is organized in the State updates section by pulling a handful of bills to the top and including specific Palo Alto impact information for those bills. The Mayor has signed letters for 4 of the 5 bills in the first table of the memo and those letters are included as Attachment B. The memo also lists other bills that Townsend is monitoring on behalf of the City. Staff also requested the League of California Cities to join for this update, if available, to share their State advocacy efforts on behalf of cities. Staff will continue to analyze these bills with Townsend as they progress. If desired, Council members may also raise for discussion other legislation of Palo Alto interest that is not listed in the memo or may recommend action on any of the bills listed on the monitoring list. The memo also includes a brief Federal update. 1City Council, April 3, 2023 Item 13:
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As a reminder, the 2023 State legislative calendar (which includes deadlines and other important dates) can be found online at: www.assembly.ca.gov/system/files/2023- 01/2023_legislative_calendar_final.pdf. This calendar provides helpful context when reviewing the bills included in the Townsend memo.
Process:
The question of process was included in the April 3rd memo and the City Council did not get to the discussion on that. The City Council expressed interest in being more involved in the legislative advocacy process, particularly related to State legislation. Going forward, Townsend and staff will regularly share legislative updates with the City Council based on the bills the City is monitoring or has taken positions on. If there are additional bills that Council members feel the City should be monitoring, please let staff know. Townsend and staff will review the bill and recommend a course of action. For context, the listed bills are being monitored in anticipation of potentially taking a position in the future depending on what happens with the bill.
Staff would like to confirm the process that the City Council will use for reviewing legislation. In prior years, the process has varied between going first to the Policy and Services Committee versus review directly by the full City Council. Given the City Council’s interest in discussing and receiving the updates, staff could plan on a monthly agenda item on legislation between February and June each year. For 2023, this would be difficult as the City Council docket is very full in June.
FISCAL/RESOURCE IMPACT
There is no additional funding needed for this update report. The City Council budgets annually for the legislative advocacy services and these efforts are led by staff in the City Manager’s Office with stakeholder support across departments on key issues.
STAKEHOLDER ENGAGEMENT
Staff from multiple departments are involved in the legislative process in helping to review the impacts of bills as well as discussing grant opportunities linked to state and federal programs.
ENVIRONMENTAL REVIEW
The City’s legislative advocacy activities are not a project under section 15378(b)(25) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical changes in the environment).
ATTACHMENTS
Attachment A: State and Federal Update Memo from Townsend Public Affairs, May 2023 Attachment B: Recent Letters on State Legislation
APPROVED BY:
Ed Shikada, City Manager
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1 M E M O R A N D U M
To: The Honorable Lydia Kou and Members of the Palo Alto City Council CC: Ed Shikada, City Manager
Chantal Cotton Gaines, Deputy City Manager
From: Townsend Public Affairs
Christopher Townsend, President
Niccolo De Luca, Vice President
Ben Goldeen, Federal Advocacy Manager
Alex Gibbs, Grants Manager
Carlin Shelby, Associate
Date: May 4, 2023
Subject: State and Federal Legislative Updates
Townsend Public Affairs, Inc. (TPA) has prepared this report for the City of Palo Alto to provide a summary of State and Federal efforts, highlight the current status of the legislative process, and identify various pieces of legislation that may be of interest to the City.
State Legislative Updates
With the deadline for measures with a fiscal impact to receive policy committee consideration by April 28, the month of April featured policy committees with packed agendas. The deadline marks an important milestone for bills, given that policy committees are responsible for the consideration of a bill’s policy implications. During the policy committee process, bills are amended and refined pursuant to committee member and stakeholder input. If they are deemed to have a fiscal impact, they move over to the appropriate Appropriations Committee, which gauges impacts on the state’s financial ability to support proposed programs. The shift from policy considerations to fiscal considerations aligns with the state’s budget process, which will kick into high gear in May, with the release of the May Revision. The Revision will offer an assessment of the state’s overall fiscal condition and ability to accommodate additional spending programs contained within various bills.
In the coming weeks, appropriations committees may hold bills that are deemed to have too big of a fiscal impact or one that is duplicative of existing budget programs. We can expect a growing number of bills to turn into “2-year bills,” meaning that they will not progress during the 2023 Session, but may be revisited in 2024. Because the Legislative cycle runs a 2-year span, all bills that do not progress in the first year may be resurrected in the second year.
Priority Legislation for the City of Palo Alto
1. Bills With City Positions
The following chart provides an overview of bills with positions taken or pending positions to take as of May 2, 2023.
Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
3 Packet Pg. 124 of 229
2 BILL SUMMARY/STATUS CITY IMPACT POSITION/
RECOMMENDATION
AB 1505
(Rodriguez)
Appropriates $250,000,000 for the purpose of
implementing the Seismic Retrofitting Program for
Soft Story Multifamily Housing
Status: Passed policy committee process in
first house, pending consideration from the
Appropriations Committee.
Seismic safety improvements
align with the Palo Alto City
Council’s 2023 Priority of
Community Health and
Safety and will help the City
progress in the seismic
improvements objective.
City Position:
Support
SB 43
(Eggman)
Updates the definition of “gravely disabled” to
include a new focus on preventing serious
physical and mental harm stemming from a
person’s inability to provide for their needs for
nourishment, personal or medical care, find
appropriate shelter, or attend to self-protection or
personal safety, due to their mental or substance
use disorder.
Status: Passed policy committee process in
first house, pending consideration from the
Appropriations Committee.
One of the Palo Alto City
Council Priorities for 2023 is
Community Health and
Safety which includes some
focus on mental health. This
bill seems to align with that
priority.
City Position:
Support
SB 363
(Eggman)
Establishes a real-time, internet-based dashboard
to collect, aggregate and display information about
the availability of beds in a range of psychiatric
and substance abuse facilities.
Status: Passed policy committee process in
first house, pending consideration from the
Appropriations Committee.
One of the Palo Alto City
Council Priorities for 2023 is
Community Health and
Safety which includes some
focus on mental health. This
bill seems to align with that
priority. The City would need
to further analyze the
resources required for this
legislation.
City Position:
Support
SB 423
(Wiener)
Extends the provisions of SB 35 (Wiener, Statutes
of 2017) indefinitely. Removes coastal exemption
and objective planning standards criteria.
Status: Passed policy committee process in
first house, pending consideration from the
Appropriations Committee.
Palo Alto has included in the
Legislative Guidelines many
principles to support local
control of land use and this
bill contrasts with that.
City Position:
Pending Opposition
SB 719
(Becker)
Requires law enforcement agencies to ensure any
non-confidential radio communications are
accessible to the public.
Status: Passed policy committee process in
first house, pending consideration from the
Appropriations Committee.
The City Council supported
similar legislation in 2022. As
of Fall 2022, the City of Palo
Alto switched routine Palo
Alto Police radio
transmissions to now be
broadcast on an unencrypted
channel. This bill in it’s
current form should not affect
Palo Alto operations.
City Position:
Support
2. Bills With Recommended Action
The following chart features four measures that TPA advocates have identified with recommendations for the City to take a formal position on, pending Council consideration and approval. These measures are not as clearly covered by the City’s Legislative Guidelines.
Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
4 Packet Pg. 125 of 229
3 BILL SUMMARY/STATUS CITY IMPACT POSITION/
RECOMMENDATION
AB 12
(Haney)
Prohibits tenants from having to pay more than one
month's rent as a security deposit for furnished or
unfurnished rental property.
This measure adds another
tool in protecting renters
against unreasonable housing
costs. This could benefit
residents in Palo Alto who
utilize rental housing.
Recommendation:
Support
AB 1598
(Berman)
Requires DOJ to prepare a firearm-safety-certificate
study guide, separate from the current instruction
manual, explaining information covered on the
firearm safety certificate test, and to develop a new
pamphlet on the risk and benefits of firearm
ownership.
Status: Pending consideration from
Appropriations Committee.
Could improve public safety
related to gun violence. City
support demonstrates
continued support for
Assembly Member Berman’s
legislative agenda.
Recommendation:
Support
AB 1637
(Irwin)
Requires cities to switch to a .gov domain if they
have not already done so. Switching to a .gov
domain is free of cost to qualified public agencies
and incorporates additional cyber security
protections. While free of cost, the update could
create additional work for City IT departments.
Amended to allow local governments until 2026 to
comply.
Status: Pending consideration from
Appropriations Committee.
This could present a long and
costly process for the City to
comply and could impact
constituents’ ability to
communicate with the City.
Further, the bill is without
state compliance support or
tangible security benefits.
Recommendation:
Oppose ACA 1
(Aguiar-
Curry)
Lowers the necessary voter threshold from a two-
thirds supermajority to 55 percent to approve local
general obligation (GO) bonds and special taxes for
affordable housing and public infrastructure
projects.
Status: Pending policy committee
consideration. Not required to adhere to typical
deadlines because it is a constitutional
amendment.
This bill creates another
optional tool for infrastructure
financing and levels the
threshold between other
public agencies that already
enjoy a 55% voter threshold,
such as school boards.
Recommendation:
Support
3. Notable bills with Recommendations to Monitor Progress
The following chart encompasses priority legislation TPA advocates are monitoring on behalf of the City. Positions noted in the “Recommendation” column reflect the suggested position of “monitoring” from TPA advocates and are subject to change, pending a review of each bill’s impact on the City. Should the City Council or staff note any additional pieces of legislation to incorporate into this chart, TPA advocates will gladly accommodate.
Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
5 Packet Pg. 126 of 229
4 BILL SUBJECT SUMMARY STATUS RECOMMENDATION
AB 309 (Lee)
Housing and
Land Use
Creates the California Housing Authority, as an
independent state body, the mission of which
would be to ensure that social housing
developments that are produced and acquired
align with the goals of eliminating the gap
between housing production and regional
housing needs assessment targets and
preserving affordable housing.
Pending
consideration
from the
Assembly
Appropriations
Committee.
Monitoring
AB 557
(Hart)
Open
Meetings
Extends modified teleconferencing provisions
under the Brown Act when a declared state of
emergency is in effect, or in other situations
related to public health, indefinitely.
Pending
consideration
on Assembly
Floor.
Monitoring
AB 817
(Pacheco)
Open
Meetings
Allows subsidiary bodies of a local agency to
use alternative teleconferencing provisions
under the Brown Act, without the need of a
State of Emergency.
Rescheduled
to a later
policy
committee
date at the
request of the
author.
Monitoring
AB 894
(Friedman)
Housing and
Land Use
Requires public agencies to allow proposed and
existing developments to count underutilized
and shared parking spaces toward a parking
requirement imposed by the agency.
Pending
consideration
from the
Assembly
Appropriations
Committee.
Monitoring
AB 1317
(Carrillo)
Housing and
Land Use
Adopts a pilot program that requires property
owners of new multi-family residential properties
in certain counties to unbundle the cost of
parking from the cost of the housing unit.
Includes Santa Clara County.
Pending
consideration
from the
Assembly
Appropriations
Committee.
Monitoring
AB 1319
(Wicks)
Housing and
Land Use
Modifies how the Bay Area Housing Finance
Authority (BAHFA) may collect and expend
revenue. Provides that actions taken by BAHFA
to raise, administer, or allocate funding for
tenant protection, affordable housing
preservation, or new affordable housing
production, or to provide technical assistance
consistent with BAHFA’s purpose is exempt
from the California Environmental Quality Act
(CEQA).
Pending
consideration
from the
Assembly
Appropriations
Committee.
Monitoring
AB 1469
(Kalra) Homelessness
Authorizes the Santa Clara Valley Water District
to assist unsheltered people living along
streams, in riparian corridors, or otherwise
within the district’s jurisdiction, in consultation
with a city or the County of Santa Clara, to
provide solutions or improve outcomes for the
unsheltered individuals.
Pending
consideration
from the
Assembly
floor.
Monitoring
AB 1476
(Alvarez)
Revenue,
Taxation, and
Economic
Development
Authorizes a city or local governments acting
jointly to form a community and affordable
housing reinvestment agency for the purposes
of financing infrastructure and housing projects,
purchasing and leasing property within the
Pending
consideration
from
Appropriations
Committee.
Monitoring
Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
6 Packet Pg. 127 of 229
5 BILL SUBJECT SUMMARY STATUS RECOMMENDATION
redevelopment project area, and other powers
similar to those previously granted to
redevelopment agencies.
AB 1484
(Zbur)
Labor
Relations and
Retirement
Requires temporary employees of cities and
counties to join existing bargaining units
accessible to permanent employees. Imposes
requirements on employers with temporary
employees hired to do the same or similar work
performed by permanent employees. Requires
complaints alleging a violation of its provisions
to be processed as unfair practice charges
under the Meyers-Milias-Brown Act.
Pending
consideration
from
Appropriations
Committee.
Monitoring
AB 1633
(Ting)
Housing and
Land Use
Specifies that a local agency has disapproved a
housing project in violation of the Housing
Accountability Act (HAA) if it fails to make a
determination that a project is exempt from the
California Environmental Quality Act (CEQA), or
fails to adopt, certify, or approve certain
environmental documents under specified
circumstances.
Pending
consideration
from
Appropriations
Committee
Monitoring
AB 1637
(Irwin)
Informational
Technology
(IT)
Requires cities to switch to a .gov domain if they
have not already done so. Switching to a .gov
domain is free of cost to qualified public
agencies, and incorporates additional cyber
security protections. While free of cost, the
update could create additional work for City IT
departments. Amended to allow local
governments until 2026 to comply.
Pending
consideration
from
Appropriations
Committee.
Monitoring
ACA 1
(Aguiar-
Curry)
Revenue and
Taxation
Lowers the necessary voter threshold from a
two-thirds supermajority to 55 percent to
approve local general obligation (GO) bonds
and special taxes for affordable housing and
public infrastructure projects.
Not required
to adhere to
typical
deadlines
because it is a
constitutional
amendment.
Monitoring
SB 2
(Portantino) Public Safety
Creates a new issuing process for concealed
carry weapons (CCW) licenses following the
U.S. Supreme Court ruling in New York Rifle
and Pistol Association v. Bruen from June of
2022.
Pending
consideration
from
Appropriations
Committee.
Monitoring
SB 50
(Bradford) Public Safety
Prohibits peace officers from initiating a traffic
stop for specified low-level infractions unless a
separate, independent basis for a stop exists.
Pending
consideration
from
Appropriations
Committee.
Monitoring
SB 252
(Gonzalez)
Labor
Relations and
Retirement
Requires CalPERS to divest existing fossil fuel
company investments on or before July 1, 2030.
Passed
Judiciary
Committee.
Referred to
Appropriations
Committee for
assessment of
fiscal impact.
Monitoring
Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
7 Packet Pg. 128 of 229
6 BILL SUBJECT SUMMARY STATUS RECOMMENDATION
SB 321
(Ashby)
Community
Services
Establishes the Local Public Library Partnership
Program in which the State Librarian would
coordinate with each local public library to
ensure each student is issued a student
success card by 3rd grade and increase their
access to a library.
Pending
consideration
from
Appropriations
Committee.
Monitoring SB 405
(Cortese)
Housing and
Land Use
Requires local planning agencies to submit to
HCD an electronic copy of its housing inventory
and post it on their website. The inventory
posting must include a notice describing how
property owners can submit information to the
planning agency indicating interest in adding a
site to the land inventory and developing the
site for housing. Also requires HCD to launch a
pilot program to develop a methodology to
analyze if the inventory of suitable land has
identified adequate sites to accommodate a
city's RHNA goals.
Pending
consideration
from
Appropriations
Committee.
Monitoring SB 429
(Bradford)
Energy and
Utilities
Requires natural gas corporations to credit
customers all revenues, including accrued
interest, received as a result of the greenhouse
gas cap and trade program. Requires those
credits to be distributed during the February
billing cycle, so as to coincide with the highest
usage gas utility bill during the year.
Pending
consideration
on Senate
Floor.
Monitoring
SB 450
(Atkins)
Housing and
Land Use
Identified as the SB 9 (Atkins, Statutes of 2022)
"Clean-up bill." Among other things, prevents
local agencies from creating zoning,
subdivision, and design rules that do not apply
equally to all development within a particular
area.
Pending
consideration
from
Appropriations
Committee.
Monitoring
SB 537
(Becker)
Governance
and
Transparency
Allows for members to teleconference in cases
where a board, commission, or advisory body
encompasses a multi-jurisdictional service area.
Pending
consideration
from Senate
Judiciary
Committee.
Monitoring.
SB 567
(Durazo)
Housing and
Land Use
Provides renter protections including expanding
the population of protected tenants, limiting
allowable rent increases, and closing loopholes
related to the no-fault just cause for eviction.
Pending
consideration
from
Appropriations
Committee.
Monitoring
SB 572
(Stern)
Energy and
Utilities
Requires the PUC, Energy Commission, and
the Federal Energy Regulatory Commission to
each consider imposing additional requirements
to protect ratepayers from price spikes,
stranded assets, duplication of services, and the
risk of windfall profiteering and market
manipulation in wholesale and retail markets.
Pending
consideration
from
Appropriations
Committee.
Monitoring
SB 634
(Becker) Homelessness
Creates a new type of low-barrier navigation
centers called “opportunity housing,” and
expands the by-right approval for low-barrier
navigation centers to include opportunity
housing projects.
Pending
consideration
from the
Appropriations
Committee.
Monitoring
Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
8 Packet Pg. 129 of 229
7 BILL SUBJECT SUMMARY STATUS RECOMMENDATION
SB 834
(Portantino) Housing
Enacts the California Family Home Construction
and Homeownership Bond Act of 2023 (bond
act), which, if adopted, would authorize the
issuance of bonds in the amount of
$25,000,000,000.
Pending
consideration
from the
Appropriations
Committee.
Monitoring
State Budget Update
During the last week of April, the Senate Democratic Caucus released its revised budget priorities document, in preparation for the Governor’s release of the May Revision of the budget. Beginning in January of each year, the Governor releases a preliminary budget proposal, which kicks off the call-and-response process between the Administration and the Legislature on how best to spend taxpayer dollars. The budget process is in a unique position this year, with the extension of the tax filing deadline for individuals and businesses as a result of the severe winter storms. This extension will impact the delivery of returns data the Department of Finance will need to compile an accurate and comprehensive spending plan.
One of the fundamental differences between the Governor’s and the Legislature’s spending plans is whether or not to draw on reserve funds to mitigate issues associated with the anticipated deficit, which was projected to be close to $22 billion in January. The Governor proposed spending cuts and deferrals to programs to protect the over $37 billion in reserve funds, citing concerns with a looming recession and the need for cash on hand should the state experience an economic downturn. The Legislature, on the other hand, has proposed using reserve funds to keep key spending programs funded at current levels, which points to the name of their counter-budget proposal – “Protect our Progress.”
However, other budget experts caution against the use of reserve funds. For instance, in Mid- April, the State’s Legislative Analyst Gabe Petek released an article overviewing the state’s anticipated fiscal condition, its causes, and the implications of drawing from reserve funds to offset revenue losses. Petek iterated that the revenue construction is not an outright downturn, but rather the other side of its recent revenue boom. The extraordinary General Fund revenue growth was allocated toward massive one-time and multi-year spending programs that are too high relative to revenue performance typical of historic norms.
Petek warned that recent turmoil in the banking sector, tech industry losses, and inflation and unemployment trends point to a looming recession that could send revenue estimates below baseline levels. To preserve mid-range financial security within the state, he favors the preservation of reserve funds and the cut and deferral of existing spending programs. While not the final decision maker on the matter, the Legislative Analyst’s Office offers critical insight into the state’s fiscal condition to be incorporated into spending practices. This insight could influence the state’s final spending strategy.
Key spending priorities within the Senate Democrat’s budget plan include the following:
• Rejects proposed cuts and delays to key infrastructure investments, such as broadband, transit, student housing, climate package investments, libraries, and more. • Accelerates previously budgeted Transit Infrastructure funds, and provides local flexibility to enable the funds to be used for operations as a bridge until a permanent operations fix can be established.
Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
9 Packet Pg. 130 of 229
8 • Creates a $10 billion Housing and Infrastructure Fund to fund one- time projects and programs that the Governor proposes to cut or delay. This includes Funding affordable housing, Transit infrastructure, Broadband, Clean energy, Student housi ng, School facilities, and more.
• Turns current one-time funding for the HHAP program into $1 billion of ongoing funding to provide local governments.
• Provides $4.3 billion in tax relief by slashing tax rates by 25 percent for small businesses, improving the Renters Tax Credit and CalEITC, and implementing the Workers Tax Fairness Tax Credit.
The Governor will release his May revision to the budget next month, which will guide ongoing negotiations between his Administration and the Legislature. However, d ue to the delay in tax return data, a comprehensive budget plan may not be fully realized until later this summer.
FEDERAL UPDATES
Update on Congressionally Directed Spending Submittal
The City/TPA team worked in partnership to draft, fine-tune, and submit a congressionally directed spending request for infrastructure funding to help redevelop the Buena Vista Mobile Home Park.
The Park, a locally significant affordable housing resource, is in desperate need of sustainable redevelopment, including 100% electrification. An award would assist the predominantly Latinx and very low-income residents who call it home. This application was in partnership with the Santa Clara County Housing Authority and the requested amount was $2 million. The request was submitted to Senator Padilla, Senator Feinstein, and Congresswoman Eshoo.
Senator Feinstein and Congresswoman Eshoo have chosen the project as one of their priorities to submit to the Appropriations Committee. While there is still a long road ahead and m any upcoming negotiations between the two parties on how to proceed with the FY24 Appropriations Process, the support from both members increases the chances of the Buena Vista Mobile Home Park being incorporated into the final budget agreement.
Federal Budget Update
On April 26, the House voted 217-215 to approve a bill (H.R. 2811) that would raise the nation’s debt limit for one year and scale back federal spending. The legislation – dubbed the Limit, Save, Grow Act of 2023 – would suspend the nation’s borrowing limit, currently set at $31.4 trillion, through March 31, 2024, or until the federal debt increases by another $1.5 trillion, whichever comes first. The bill also would freeze fiscal year 2024 discretionary spending at 2022 levels (a reduction of approximately $130 billion) and limit the growth of spending over the next decade to one percent annually.
The proposed plan also includes structural changes to social safety net programs like the Supplemental Nutrition Assistance Program (SNAP), the Temporary Assistance for Needy Families (TANF) program and Medicaid. These include new work and income threshold requirements for benefit recipients at specific ages.
The Biden Administration has stood in strong opposition to the spending plan, with the President threatening to veto it. Should it pass over to the Senate, the measure will be dead on arrival in Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
10 Packet Pg. 131 of 229
9 the Democratic -led Chambers. Without action by Congress to raise the debt limit, which is projected to be reached as early as this summer, the U.S. government faces a potentially catastrophic default. Despite political concerns about its feasibility, GOP members say that it is a crucial step to strengthen their negotiating position against President Biden amid questions about whether Speaker McCarthy would be able to unite his fractious conference to pass any fiscal outline at all.
Item 13
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, May 2023
Item 13: Staff Report
Pg.
11 Packet Pg. 132 of 229
Attachment B:
Letters Submitted to Date (aligned with Legislative Guidelines) AB 1505, SB 43, SB 363, and SB 719
Item 13
Attachment B - Recent
Letters on State
Legislation
Item 13: Staff Report
Pg.
12 Packet Pg. 133 of 229
CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100 May 4, 2023
The H
onorable Freddie Rodriguez
California State Assembly, District 53
1021 O Street, Room 1200
Sacramento, CA 95814
RE: AB 1505 (Rodriguez) Seismic Retrofitting: Soft Story Multifamily Housing City of Palo Alto - Notice of Support
D
ear Assembly Member Rodriguez,
O
n behalf of the City of Palo Alto, I write in support of your legislation AB 1505, which would grant $250,000,000 from the General Fund in the 2023– 24 Budget Act to the Seismic Retrofitting Program for Soft Story Multifamily Housing Fund. This critical funding provides for matching grants for seismic retrofit engineering and construction to protect affordable multifamily housing developments from earthquakes.
W
ith California’s historic vulnerability to earthquakes, it is urgent and imperative to provide funding for seismic retrofitting. Funding for this program was originally included in budget trailer legislation and signed into law by the Governor in 2022. However, the funding was proposed to be omitted from the 2023 preliminary budget submitted to the Legislature. AB 1505 will work to restore this funding on an urgency basis.
To k
eep our community safe from future earthquake damage and fatalities, it is pertinent to comply with se ismic building standards, and provide adequate funding to ensure public safety and disaster preparedness needs are met. California has historically been a hub of major earthquake disasters, given its position along the tectonic plate boundaries including the San Andreas, San Gregorio-Hosgri, and Hayward-Rodgers Creek fault zones.
AB 1505 will help protect our State and local communities from earthquake damage and devastation by ensuring compliance with seismic retrofitting to proactively prepare for future disasters. By submitting this letter, we express our support for the inclusion of the pre-dedicated $250 million for seismic retrofitting support in the upcoming iteration of the State’s budget, whether catalyzed by this legislation or similar budget trailer legislation.
For
these reasons, the City of Palo Alto supports AB 1505.
S
incerely,
Ly
dia Kou
Mayor
City of Palo Alto
Item 13
Attachment B - Recent
Letters on State
Legislation
Item 13: Staff Report
Pg.
13 Packet Pg. 134 of 229
CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100 May 4, 2023
The Honorable Susan Eggman
California State Senate
1021 O Street, Room 8530
Sacramento, CA 95814
RE: SB 43 (Eggman) Behavioral Health.
City of Palo Alto – Notice of Support
Dear Senator Eggman,
On behalf of the City of Palo Alto, I write in support of your SB 43, which modernizes portions of California's behavioral health treatment system and social safety net system to ensure that vulnerable individuals with the most acute needs receive access to the care they need.
SB 43 modernizes the definition of "gravely disabled" within the Lanterman- Petris-Short Act to include conditions that result in a substantial risk of serious harm to an individual's physical or mental health. This includes the inability to seek medical care, adequate shelter, or self-protection and safety. Updating this definition better reflects the contemporary realities present in our communities, ensuring that individuals at risk of significant harm receive the help they need.
Additionally, this measure allows relevant medical history to be considered by the court in a uniform manner across the state by creating a hearsay exemption for information contained in a medical record so all relevant information can be presented and considered by the court. This would ensure that a complete and accurate picture is presented in court when considering the very serious step of conservatorship.
Cities are on the front lines of addressing homelessness and need additional tools and resources to end this crisis in our state. We recognize that for unsheltered individuals with severe behavioral health needs, access to a comprehensive care system can be essential to addressing their homelessness. That is why The City of Palo Alto is eager to support legislation such as SB 43, which takes a comprehensive look at our existing system and makes targeted improvements.
For these reasons, the City of Palo Alto is pleased to support your SB 43.
Sincerely,
Lydia Kou
Mayor
City of Palo Alto
Item 13
Attachment B - Recent
Letters on State
Legislation
Item 13: Staff Report
Pg.
14 Packet Pg. 135 of 229
CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100 May 4, 2023
The Honorable Susan Eggman
Chair, Senate Health Committee
State Capitol, Room 3310
Sacramento, CA 95814
RE: SB 363 (Eggman) Facilities for inpatient and residential mental health and substance use disorder: database.
City of Palo Alto – Notice of Support
Dear Senator Eggman,
On behalf of the City of Palo Alto, I write in support of your SB 363, which would establish a real- time behavioral health bed database.
Specifically, this measure would require the State Department of Health Care Services to develop a database by 2025 to collect, aggregate, and display information about beds in inpatient psychiatric facilities, crisis stabilization units, community care facilities, and licensed residential alcoholism or drug abuse recovery or treatment facilities. This information would help provide timely access to care and increase coordination between service settings.
SB 363 would additionally require this database to include data related to the facility, including if a bed is available, the services provided, diagnoses, and the age range for which the bed is appropriate. This data would streamline access to care and be a valuable tool for local leaders and policymakers in directing funding and resources based on bed capacity and utilization.
Mental illness and substance use, like many other health conditions, when treated early and with appropriate supports and services, will be less disabling and result in fewer adverse outcomes.
SB 363 would provi de easily accessible bed availability data that would connect individuals to care more quickly, and also help cut down on extended emergency room stays. As a City we have prioritized community health and safety and believe that mental health support is a v ital part of health and safety.
We believe SB 363 is a step in the right direction, providing critical data to help assess the capacity of our system.
For these reasons, the City of Palo Alto is pleased to support your SB 363.
Sincerely,
Lydia Kou
Mayor
City of Palo Alto
Item 13
Attachment B - Recent
Letters on State
Legislation
Item 13: Staff Report
Pg.
15 Packet Pg. 136 of 229
CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100
May 4, 2023
The Honorable Josh Becker
California State Senate, District 53
1021 O Street, Room 7250
Sacramento, CA 95814
RE: SB 719 (Becker) Law enforcement agencies: radio communications City of Palo Alto - Notice of Support
Dear Senator Becker,
On behalf of the City of Palo Alto, I write in support of your SB 719, which requires a law enforcement agency (LEA) to ensure any non-confidential radio communications are accessible to the public, in real time. Specifically, this bill allows an LEA to choose one of the following options to provide public access to certain radio communications: (a) provide unencrypted radio communications that may be accessed on a scanner or is available on- line, or (b) provide encrypted communications, if requested. The bill does not require access to channels used for confidential informat ion or other communications that would unreasonably jeopardize public safety or the safety of officers if made public.
In October of 2020, the California Department of Justice (DOJ) sent out a bulletin to all law enforcement agencies regarding radio encr yption. This bulletin stemmed from an order by the Federal Bureau of Investigations to restrict all criminal justice information (CJI) and personal identifiable information (PII) to authorized personnel. The bulletin stated all transmission of such information must be encrypted and provided agencies two options: 1) move to full encryption of radio communications, or 2) establish a policy to restrict dissemination of CJI and PII, or data elements that meet those definitions.
The City agrees that access to police activity , while still ensuring safeguards for the public’s sensitive and confidential information, is important . This information helps local news outlets provide real time updates for major news events such as wildfires and other public safety concerns.
The City of Palo Alto is proud to support your efforts to increase visibility for the public and the media into police calls for service. Palo Alto last year unencrypted the police department's primary dispatch channel thus providing real-time radio access to police communications while protecting personal information. Your bill would encourage other police departments to seek solutions to protect data while also providing public access.
Existing law does not guarantee public access to police radio communications, nor does it prohibit public access to unencrypted police radio channels. Existing law does, however, make it a crime to use any intercepted public safety radio communication to assist in the commission of a crime or evade capture by law enforcement. This bill provides much needed clarity for how the public Item 13
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may access and utilize police communications to ensure the public’s safety , police safety, and confidentiality.
For these reasons, the City of Palo Alto is pleased to support your SB 719.
Sincerely,
Lydia Kou
Mayor
City of Palo Alto
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: May 15, 2023
Report #:2303-1210
TITLE
PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment: Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305.
Recommendation
Staff recommends the City Council:
1. Adopt the attached Ordinance (Attachment A) amending Palo Alto Municipal Code Title 18 (Zoning) to amend regulations for Accessory Dwelling Units (ADUs), Junior Accessory Dwelling Units (JADUs), and Accessory Structures, including provision to respond to direction from the Department of Housing and Community Development (HCD).
Background
The Planning and Transportation Commission (PTC) recommends approval of the attached draft Ordinance (Attachment A). This ordinance updates various sections of Chapter 18 of the Palo Alto Municipal Code related to Accessory Dwelling Unit and Accessory Structure standards.
The attached draft Ordinance (Attachment A) incorporates:
•PTC-supported and recommended policies
•Necessary revisions to address the State Housing and Community Development (HCD) department’s December 12, 2022 letter.
The staff reports, meeting minutes, and videos for those hearings can be found online(1)(2). 1 https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Planning-and-Transportation- Commission-PTC/Previous-PTC-Agendas-Minutes 2021/2 Staff reports, meeting minutes, and videos. Select the Agenda Item on the following dates: February 10, February 24, and May 26, for 2021. July 13, August 10, and September 28, 2022 for 2022.
2 https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Planning-and-Transportation- Commission-PTC/Current-PTC-Agendas-Minutes 2023 Staff reports, meeting minutes, and videos. Select the Agenda Item on the following dates: February 22, March 8, 2023.
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Discussion
The staff report touches on the following subjects related to changes to Chapter 18:
A. Staff Response to Housing and Community Development (HCD) Letter i. Application of Daylight Planes for Table 2 Units
ii. Calculating Floor Area for ADUs/JADUs
iii. Noise Producing Equipment Location Standards
iv. Entryways for ADUs/JADUs
v. Parking Attached to ADUs Contributing to the Unit’s Maximum Size B. Proposed Areas for Regulatory Change
i. Basements
ii. Noise Producing Equipment Location Standards
iii. Parking Provided for an Attached ADU
iv. Privacy
v. Retracting Prior Deed Restrictions
vi. Allowing Reconstruction/Expansion of Non-Conforming Structures vii. Removing the “Existing” Garage/Carport Requirement for Conversions viii. Conversion/Relocation of Uncovered Parking Stalls ix. Alignment of ADU and Tree Ordinances
C. Corner Lot Incentives to Maintain Street-side Setback on Corner Lots D. Incentives for Affordable ADUs
E. Code Modifications to Definitions, Sanitation Facilities, and Accessory Structures i. Clarifying How FAR/Lot Coverage is Calculated with Attached Units ii. Translating Second Units through Demolition/Reconstruction iii. Clarification on JADU Construction and Sanitation Facilities iv. Calculating Gross Floor Area
v. Clarification on Accessory Buildings with Covered Porches or Patios (>120 sf) vi. Allowed Accessory Structure Fixtures (PAMC 18.10, 18.12, 18.040) A. Staff Response to HCD Letter
On December 23, 2021, the City received a letter from HCD regarding the ordinance the City adopted in November 2020 (Attachment B). HCD raised 12 issues with the City’s ordinance which they thought conflicted with state law or required further clarification in the ordinance. On February 3, 2022, City staff met with HCD staff to discuss HCD’s comments and concerns as well as to explain the structure and intent of the language incorporated into the City’s ordinance.
Following that discussion, City staff provided detailed responses to the HCD letter, indicating areas where the City would incorporate changes and where staff required clarification (Attachment C).
On December 21, 2022, the City received a follow up letter from HCD responding to the City’s comments (Attachment D). Five items were included in the revised HCD letter. On January 13, 2023, City staff met with HCD staff to discuss HCD’s comments and concerns again. City staff Item 14
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provided detailed responses to the HCD letter on the same day, indicating areas where the City would incorporate changes to its ordinance (Attachment E). The five items from HCD’s 2022 letter are summarized below:
i. Application of Daylight Planes for Table 2 Units
Section 18.09.040 of the City’s zoning ordinance identifies that daylight planes can be applied to ADUs for which the City has some regulatory authority (sometimes referred to as “Table 2 units”).
This was based on staff’s interpretation of the framework and language that was adopted by State law in 2020. Staff’s interpretation of state law was that requiring a Daylight Plane did not prohibit units from achieving the 16-foot height guaranteed by State law. The Daylight Plane did alter the massing of the unit, to ensure ADUs would more appropriately fit into the context of Palo Alto neighborhoods and reduce impacts on adjacent properties.
In their response, HCD staff appeared to state that the nuance staff was trying to assert between total height allowed for an ADU and allowing for a 16-foot-tall structure at a four-foot setback was inaccurate. HCD staff asserted that the City could not apply daylight planes to detached ADUs that prohibit them from achieving these minimum height standards. HCD further clarified that Senate Bill 897 modified the language of the previous statute to allow for taller attached and detached ADUs that met certain provisions.
In response to this direction, staff has removed the ADU-specific daylight plane requirement from PAMC 18.09.040 for detached ADUs and JADUs. Based on the language adopted under SB 897, the State allows for attached ADUs to be built in conformance with the height requirements of the main house in the local zoning ordinance. This would mean that for attached ADUs, daylight planes still apply, and Table 2 is this referenced code section has been updated to reflect this change.
ii. Calculating Floor Area for ADUs/JADUs
The City’s 2020 ordinance provided a “bonus” floor area and lot coverage exemption for ADUs and JADUs to incentivize the development of these units and provided staff a clear term to convey development rights to homeowners under PAMC 18.09.040, Table 2. The City also updated its ordinance in 2020 to allow for JADUs to be expansions of existing or proposed single-family homes, rather than limiting them to only occur as conversions of an existing home, as required by the State. The purpose was to eliminate a multi-stepped process requiring a portion of a house to first be built and then receive a new permit to convert it to a JADU. Additionally, the underlying house would be limited by its existing floor area and lot coverage restrictions which would continue to disincentivize the creation of JADUs as a homeowner would need to choose to sacrifice the allowable square footage of their home to build a JADU.
In the HCD staff’s letter, they contest that JADUs do not count towards a property’s floor area or lot coverage limit as they can only exist within the buildable area of an existing or proposed single-family home. Without expanding the allowances for the primary dwelling to have more floor area, the City cannot allow JADUs to be additions, nor allow a certain amount to be Item 14
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considered exempt from floor area and lot coverage. When staff met with HCD staff and highlighted the way the City uses terms such as “floor area” and “lot coverage” to convey development rights to homeowners, HCD staff agreed that the issue between their understanding of Palo Alto’s local terms and the State’s approach to implementing ADU/JADU law may be an issue of semantics, with respect to this specific issue, because they were supportive of what the City was doing to encourage JADU development. Regardless, HCD reiterated its position on that state law only allows for JADUs to occur within existing or proposed single-family homes and that Palo Alto would need to provide more floor area or lot coverage for the primary home to allow the JADU to benefit from the City’s “bonus” provisions.
The City’s existing laws are far more generous the state legislation in this regard and staff does not believe that additional clarification is needed in the City’s ordinance. Staff will continue to meet with HCD staff as needed to explain how this provision furthers the state’s interest in housing production and complies with state law. to ensure that the policies it has been enacting since 2020 are consistent with the State law.
iii. Noise Producing Equipment Location Standards
In concert with State law, the City updated its 2020 ordinance to allow for reduced setbacks for ADUs. As an incentive to encourage more units to be built, and in line with what is noted in the response above, the City also allowed JADUs and noise-producing producing equipment to have a four-foot setback from the rear and side property lines. HCD repeated its concern that the City was inappropriately applying setback standards to JADUs that should not exist given that JADUs are only supposed to exist within the existing or proposed walls of a single-family home. From HCD’s perspective, for a JADU to have a four-foot setback the City would need to update its zoning code to allow the primary dwelling unit to have a four-foot setback. While it may be technically more accurate to call this four-foot setback a “setback for the new construction portion of a single-family home that is dedicated to a JADU,” staff believe it is easier for applicants and staff to refer to this as a “setback for a new construction JADU.” For noise-producing equipment, the City has already updated its code to allow for reduced allowances when that equipment serves an ADU or JADU. As a result, staff does not believe additional modifications to the City’s ordinance are necessary to address this comment. iv. Entryways for ADUs/JADUs
Since the City updated its ordinance in 2017 to allow for attached ADU/JADUs, the Palo Alto Municipal Code requires attached units to have a doorway that faces toward a different property line than the doorway for the primary dwelling unit. The only exceptions allowed were when an attached unit was on a corner lot, or the unit was in the rear half of the lot. In 2020, staff updated this provision to also require that any exterior staircase to second-floor units face towards and interior side or rear yard. The purpose of this design requirement was to ensure that the primary façade did not appear cluttered or visually confusing with entries to the building(s).
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HCD contends that this policy could have the potential to unduly restrict ADU/JADU development by adding additional cost and site development constraints to homeowners. Since 2017, after reviewing at least 500 applications for ADU/JADUs, staff has yet to encounter a scenario where this has prevented a unit from being developed on a property. Regardless, HCD states that the City must either eliminate this provision or add language which states that this provision applies “when feasible”. Staff is concerned that adding “when feasible” to this provision has no clear definition in the City’s municipal code nor state law and will likely create an un-enforceable standard when applicants don’t want to comply with it. As a result, staff recommends removing the provision altogether if HCD believes that the City’s ordinance will not comply with state law because of this rule.
v. Parking Attached to ADUs Contributing to the Unit’s Maximum Size In HCD’s recent letter, the HCD staff reiterated their previous position that garages attached to ADUs should not contribute to the maximum size or floor area of the ADU. This was agreed to by the PTC and has been incorporated into the attached ordinance.
Staff met with the PTC in July, August, and September of 2022 to discuss code changes to Chapter 18 as well as February and March of 2023 to discuss the items raised in the HCD letters. After receiving additional direction from PTC, staff recommends proceeding with the updated draft ordinance in Attachment A.
B. Proposed Areas for Regulatory Change
The following changes are only in relation to ADU/JADUs that exceed the minimum standards that the City must approve under state law (“Table 2 units”):
i. Basements
On July 13 and August 10, 2022, the PTC indicated support for allowing basements underneath ADU/JADUs. In that discussion, the PTC highlighted the following to incorporate into a draft ordinance:
•The basement cannot encroach into the four-foot ADU/JADU setback, unless a basement already exists in that area. In this case, the non-conforming area may remain but cannot be expanded, consistent with other non-conforming provision of City and State law. •New ADU/JADU lightwells cannot be located closer than four feet to a property line. All lightwells would need to be screened from view from public rights of way using landscaping, consistent with the City’s current requirements for lightwells associate with the main house.
•A new basement must not negatively impact tree roots on adjacent lots such that it would cause the tree to be removed or fail. Protected trees would continue to be subject to the City’s tree regulations. Urban Forestry staff identified that roughly 25% of a tree’s protection zone could be affected without causing it to fail, on a case-by-case basis.
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•All useable 3 basement space for ADU/JADUs shall count towards the unit’s gross floor area.
The PTC did not support requiring basements to be fully subterranean and were willing to allow any variation of the diagram below provided that all useable basement area contribute to the unit’s allowable square footage.
Source: ATTACHMENT C
On February 22 and March 8, 2023, staff noted additional basement provisions for the PTC to consider. Basements in Palo Alto typically do not count towards the floor area, lot coverage, or maximum house size limitations for single-family homes. Basements are only allowed to be built underneath the footprint of the first floor. As a result, the size for a basement is inherently tied to the primary home’s development potential. This can range from 2,550 sf (for a typical 6,000 sf lot) or less and up to the City’s maximum house size (6,000 sf in the R1 zones). As it is currently written, the City’s code does not distinguish between the footprint of a primary home or the footprint of a primary home and an attached second unit for the purposes of determining the maximum basement size. With new City and state laws, attached ADUs and JADUs can increase the size of a primary home’s footprint by 500 sf or 800 sf, respectively. This creates an unintended consequence where a homeowner could build the maximum size house possible on their lot, build an attached ADU and/or JADU, and propose a basement for the primary home which extends underneath the attached second unit (right image below). Where a primary unit and basement would normally be limited to a maximum house size of 6,000 sf each, there could be scenarios where a primary unit is 6,000 sf and a basement that serves it is up to 6,800 sf.
Staff’s understanding of the intent behind the existing rule is to not allow basements to expand beyond the footprint of the primary dwelling unit, though it does not make this distinction clear.
Additionally, the purpose of the bonus square footage for ADUs and JADUs is to encourage the development of additional housing units, not to build an attached second unit and propose/expand a basement that serves the primary home underneath it. During the February 22 PTC hearing, the Commissioners seemed open to including language to address this issue into 3 Habitable basement is when there is at least seven feet distance between basement floor and basement ceiling Item 14
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the draft ordinance and recommend on March 8 to include the suggested language to Chapter
18.10.090(a) and 18.12.090(a) as shown under Sections 10 and 11 in the draft ordinance. ii. Noise Producing Equipment Location Standards
The draft ordinance reduces the current standard for placement of all noise-producing equipment associated with an ADU/JADU along the interior side and rear property lines. This would allow additional development flexibility for homeowners. The current standard requires noise-producing equipment to follow a 4-foot setback to the property line for second units. The proposed ordinance would allow this equipment to be located between the property line and 4 feet under circumstances, including compliance with the City’s noise ordinance.
Most municipalities and other agencies specify noise limits in units of dBA, which is intended to mimic the reduced receptivity of the human ear to Sound Pressure (“L P”) at particularly low or high frequencies. Sound attenuates over distance. Sound waves are an ever-expanding circle, moving away from the sound source. The wave starts with an initial amount of energy. That amount of energy is gradually spread out over a wider and wider area as the wave expands.4 The attenuation of a sound wave's intensity follows an inverse square law. In other words, the observed intensity of a sound wave decreases depending on the square of the observer's distance from the source. The intensity of a sound wave will decrease faster and faster the further it gets from the source. According to the inverse square law, it can be shown that for each doubling of distance from a point source, the sound pressure level decreases by approximately six dBA. 5 Given that most noise-producing equipment that has been provided for ADU/JADU applications tends to be at or lower than 66 dBA, each successive doubling of distance would bring a unit further into compliance with the City’s Noise Ordinance. 4 Sound Attenuation – Inverse Square Law: https://bit.ly/3Uc6V9t 5 Attenuation of Sound: https://bit.ly/3dgL54g
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The PTC also asked staff to confirm that reduced setbacks for noise-producing equipment would not conflict with ingress/egress requirements for the Fire Department. The Fire Department noted that noise-producing equipment can impact ingress/egress requirements but also noted that an ADU/JADU can be designed in a way that resolves this issue. In essence, the design of the building is flexible such that locating noise-producing equipment within a zero-to-four-foot setback would not create a scenario that is impossible to design around and still provide adequate life safety access to the unit.
With this additional information, the PTC supported staff’s proposed language changes to the placement of noise-producing equipment for ADU/JADUs.
iii. Parking Provided for an Attached ADU
PTC considered whether or not an ADU can have an attached garage. Though there is potential for illegal conversion of a garage to living space without proper permitting, the PTC did not see these concerns as any more severe than for other attached garage structures. The PTC directed staff to modify PAMC 18.09.040(iv) (now 18.09.040(k)(v)) to remove the inclusion of an attached garage counting towards a second unit’s maximum size. This decision occurred prior to HCD’s December 2022 letter indicating the City needed to modify this policy. iv. Privacy
The PTC indicated that the City needs to maintain stringent privacy measures for ADU/JADUs as they can be placed closer to property lines than a typical house. The PTC wanted to focus the City’s current policies to limit impacts from windows on the first and second floor of a second unit.
During the July 13, 2022 PTC meeting, two commissioners asked how to best implement the City’s privacy measures for Table 2 units. They asked whether the City should adopt more stringent privacy requirements for windows facing adjacent properties, based on a height standard rather than simply requiring privacy when there is a second floor or equivalent space, as the code currently requires. At the time, the PTC did not adopt a motion to change the existing policy, other than to clarify that these policies only applied when a second-floor level was proposed for an ADU.
Since then, staff have been receiving more complaints from neighbors regarding privacy impacts from larger ADUs built close to their property lines, as State law now allows. Staff noted on February 22, 2023 a desire to revisit this discussion with the PTC. The below images are provided to illustrate the issue of views from two different floor levels:
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View with standard finished floor 1.5 ft above grade View if a finished floor were 2.5 ft above grade There are no privacy measures in place for one-story, single-family homes with taller first-floor levels, and only building permits are required for one-story homes. However, new primary homes in the R1 zones are generally located at least 6 to 8 feet from an interior side property line, and at least 20 feet from a rear property line.
Privacy measures cannot be imposed on ADU or JADU buildings that are set back four feet from an interior property line, for units that qualify under PAMC 18.09.030 (aka Table 1). This is true also for units that do not have a second-floor level, even when the ADU height is 16 feet or more.
The City can introduce privacy measures for ADUs and JADUs with higher first-floor levels placed at four feet from an interior property line into Chapter 18.09; however, staff can only apply such privacy measures to units that fall under PAMC 18.09.040 (aka Table 2 units). During the February 22nd PTC hearing, the Commissioners supported staff’s proposal to present additional privacy regulations for ADUs under PAMC 18.09.040(k)(2).
As a result, staff updated section 18.09.040(k)(2) in the attached draft ordinance, to incorporate the following provisions:
•Clarification that privacy measures will only be applied when there are second floors, lofts, or equivalent spaces.
•Egress windows shall not be located on walls which face adjacent property lines, when feasible. When infeasible, these windows shall utilize opaque glazing on the whole window.
•If the first finished floor of an ADU or JADU is two feet or more above grade, then first floor windows shall include the following:
a. Non-egress, operable windows facing an adjacent interior property line shall have a windowsill(s) that start five feet above the first finished floor for the unit; b. Non-egress, non-operable windows facing an adjacent interior property line shall have the lower half of window(s) (minimum of five feet above the first finished floor) utilize opaque glazing.
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•Where feasible, requiring the use of skylights in bathrooms and other spaces where windows could be considered optional.
•No exterior lighting mounted above seven feet and lighting must be directed downwards to prevent light spillover onto adjacent properties.
These added measures would provide guidance for applicants and additional protections for neighbors from the potential privacy impacts from new second units. v. Retracting Prior Deed Restrictions
The PTC directed staff to review the appropriate process to allow homeowners to remove the prior owner-occupancy deed restrictions placed on units built prior to 2020. Removing these restrictions would allow residents who built ADUs before 2022 to rent a primary dwelling unit and ADU separately. In order to remove deed restrictions that the City has already approved for ADUs, staff will create a new document that can be recorded with the Santa Clara County Recorder’s Office to supersede the prior deed restriction noting that the restrictions no longer apply.
vi. Allowing Reconstruction/Expansion of Non-Conforming Structures The PTC indicated support for allowing owners to expand legal, non-conforming walls in order to allow a converted structure to provide a better living unit and better meet insulation and energy requirements for modern habitable buildings. Several commissioners also expressed concerns with how close some non-conforming buildings can be to adjacent property lines and fences and how conflicts can come up when work needs to occur in those spaces.
In the draft ordinance, staff sought to address this
concern by limiting when and where a non-conforming
wall can be expanded. Specifically, the proposed language in section 18.09.060(c)(ii) states that walls that do not currently have a one-foot separation from the property
line would not be able to benefit from this provision. For walls that currently have this separation, they could be expanded up to a maximum of six inches in width
depending on whether or not they would encroach closer
than one foot to a property line. Staff believes this
captures the support, and concerns, raised by the PTC.
The PTC also supported allowing legal, non-conforming
structures to increase in height. Section 18.09.060(c)(i) indicates that an applicant may modify the height of a
legal, non-conforming structure by up to 12 inches or to a maximum of 12 feet, whichever is less. Staff anticipates that most owners that would seek to utilize this process will most likely be able to use the full one-foot extension.
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However, it would be important to limit how tall these structures can be given their closer proximity to adjacent neighbors.
For example, if an existing structure was 11 feet and two inches tall, then the height could be increased by only 10 inches, rather than one foot. This section also would require retention of the existing roof line and style. For example, a structure with a shed roof cannot be converted to a gabled roof. Staff believes that this will help to mitigate potential massing and aesthetic impacts upon adjacent neighbors. Neighbors will already be familiar with the existing structure’s outline, albeit slightly taller and closer to their property (see example roofline images below).
Source: Google Images
vii. Removing the “Existing” Garage/Carport Requirement for Conversions Staff included in the draft ordinance section 18.09.060(d), which follows the PTC’s direction to eliminate the need to have an existing garage/carport when applying to convert a garage to an ADU/JADU when a new home is also proposed on site. This would eliminate the current two-step process that prevents homeowners from proposing a new home and ADU with no covered parking on site.
viii. Conversion/Relocation of Uncovered Parking Stalls The City’s current Zoning Code requires that single-family homes include two parking spaces on site, both of which need to be located beyond the front yard setback, and one of which must be a covered parking space. Over time, staff has recognized a disconnect between requirements for single-car garages with Item 14
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adjacent uncovered parking spaces converted to an ADU, and two-car garages converted to an ADU.
Namely, PAMC Chapter 18.09 and state law do not require the replacement of covered parking spaces lost through the conversion of a garage to an ADU, but also do not provide direction on what should occur for uncovered parking spaces. Staff’s current application of the law reflects an interpretation that there is no such relaxed replacement allowance for uncovered parking spaces and such spaces must comply with the typical siting requirements – i.e., that these spaces must be placed on site and beyond the front yard setback. Below is an example to demonstrate this issue:
An owner who wants to eliminate the uncovered parking stall in the left-most example above would first need to expand a garage within the blue area to accommodate two, 10-foot wide by 20-foot-deep parking stalls. Once a final occupancy permit is issued for that building permit, the owner could then file another permit to convert the new garage into an ADU. This creates a two- step process that adds time, money, and constraints to developing an ADU whereas, under a different existing configuration, an owner could already take advantage of the relaxed conversion allowances. The City currently allows JADUs under PAMC 18.09.040(k) to replace parking lost through garage conversions in the driveway as uncovered spaces.
On February 22, 2023, Commissioners expressed support for eliminating this two- step process.
The attached draft ordinance captures this new policy under PAMC 18.09.040(l)(2). ix. Alignment of ADU and Tree Ordinances
Following the PTC review of the ADU ordinance, staff engaged with several applicants seeking to build ADUs but struggling with the Tree Disclosure Statement required in the new Tree Ordinance. The new Tree Ordinance, adopted in June 2022, requires all applicants to complete a Tree Disclosure Statement prepared by a licensed arborist. In reviewing this requirement as it applies to ADUs, staff determined that the licensed arborist requirement could represent an undue burden on ADU construction. Accordingly, for projects that solely involve an ADU, the attached ordinance proposes to permit a property owner, rather than an arborist, complete the Tree Disclosure Statement.
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C. Corner Lot Incentives
Corner lots can be difficult to develop due to their more limiting setback requirements. Draft ordinance section 18.09.040(j) captures the PTC’s direction to allow reduced setbacks for the primary house when ADU/JADUs are built in tandem. The draft ordinance allows for a primary home to be placed at a 10-foot street-side setback and a 16-foot front yard setback, provided the ADU/JADU follows these same setbacks. The PTC felt that this will serve as a strong incentive for homeowners on a corner lot to build an ADU at a greater setback than allowed by state law which will help to maintain the City’s desired aesthetic character for single-family neighborhoods.
Staff noted to the PTC that this policy may create the opportunity for a homeowner to abuse the City’s provisions through a two-step process given the authority state law provides to homeowners when building ADU/JADUs. That is, an owner could build a house and ADU at a 10- foot setback, then after the final occupancy permit is issued, propose an ADU that conforms with state law requirements. While that would be a significant financial burden to overcome for a homeowner and is not likely, it is not an impossible situation to occur later at the site or if the property were sold to another individual whose interests did not align with the City’s policy. Staff suggested to the PTC that a deed restriction could be enacted on the property which serves as an agreement between the City and homeowner which prevents this from occurring; however, it could be fraught with legal and practical implementation challenges should a current or future homeowner contest it conflicts with state law. As a result, the PTC suggested that no restriction be recorded against the property and floated the question to City Council to decide whether this concern would be worthwhile to protect against.
D. Incentives for Affordable ADUs
i. Exempting Affordable Units from Impact Fees and Plan Review Fees On September 28, 2022, the PTC recommended that the Council adopt a pilot program for deed restricted, affordable ADUs. Under this pilot program, property owners who agreed to deed restrict an ADU to rents affordable to households earning no more than 80% of area median income would have development impact fees waived, up to $50,000 per unit. The pilot program would be limited to a total of $400,000 of waived fees per year. Staff indicated that, prior to bringing the recommendation to Council, staff would discuss administrative details like income certification, tenant selection, and monitoring with Alta Housing, the City’s affordable housing administrator.
Early feedback from Alta Housing included several reservations about an affordable ADU program as recommended by the PTC. Alta’s concerns were as follows:
•The eight-year period is shorter than the typical length that affordable housing tenants remain in one location. This raises additional concerns about transition when the affordability restriction is over.
•In larger projects, tenants who exceed income thresholds can often convert to a market rate unit and remain in the same development. That won't be possible for ADUs.
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•The program may result in fair housing/discrimination issues if homeowners are responsible for choosing tenants. Personality or preferred tenant clashes could create additional administrative burden.
•Homeowners are typically not in the business of being landlords. Significant outreach is needed to educate homeowners on what they would be signing up for (vis-à-vis renter rights, fair housing laws, relocation compensation if work needs to occur on-site and tenants must move out, etc.).
In short, it appears that the program would result in an additional administrative burden compared to affordable units typically administered by Alta Housing. Currently, when Alta Housing works with a private property owner, they typically administer multiple units at a single site and these units are deed restricted for terms ranging from 55 to 99 years. This limits the amount of onboarding and education required per unit. By contrast, an affordable ADU program would involve a different property owner for each unit, and these units would only participate for a period of 8 years.
In addition, there are currently several affordable housing projects in Palo Alto, which have already sought or may seek support from the City’s affordable housing funds. Projects at various stages of the process include 231 Grant, 525 E Charleston, Palo Alto Homekey, Buena Vista Mobile Home Park, and 3001 El Camino Real. In addition, some existing affordable housing projects have recently reached out to the City to inquire about support for unexpected expenses.
As a result, staff believe there are ample other opportunities for the City to support affordable housing, which may provide greater overall benefit than an affordable ADU program. With this additional information, the PTC recommended at the February 22, 2023 hearing to not proceed with this program.
E. Code Modifications to Definitions, Sanitation Facilities, and Accessory Structures The PTC voted unanimously to approve staff’s recommended changes to the following sections of the City’s municipal code.
i. Clarifying How FAR/Lot Coverage is Calculated with Attached Units The City provided a uniform bonus for ADU/JADU development in accordance with state law requirements. As a result, there have been challenges presented regarding how to calculate floor area for the main home versus the floor area ratios (FAR) with respect to attached units.
Overall, the City’s definitions guide how staff calculates these allowed ratios on residential and commercial lots. However, when it comes to an attached ADU/JADU in an RE, R-1, R-2, and RMD district, the code states that: “Gross floor area means the total covered area of all floors of a main structure and accessory structures greater than one hundred and twenty square feet in area, including covered parking and stairways, measured to the outside of stud walls” (PAMC
18.04.030(a)(65)(C)). When there is an attached unit, there is a shared wall between the two structures and it is unclear to applicants and staff how this area should be counted between the units as it is not technically an “exterior wall” (see image below). If the shared wall spans a large portion of the two units, it can add up to a significant amount of square feet.
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Staff suggests adding language in sections 18.09.030(c) as well as 18.09.040(e) that states that FAR, Lot Coverage, and Maximum House size should be related to the exterior stud of the primary unit’s shared wall. Staff believes this mirrors the existing policy in PAMC 18.04.030(a)(65)(C) and in the event a second unit is built, this would provide clear direction on how to calculate these spaces. The PTC supported staff’s approach and voted to incorporate this policy in the draft ordinance as they felt it would be more accommodating for ADU/JADU development.
Source: Kohler Architects
ii. Relocating Second Units through Demolition/Reconstruction PAMC section 18.09.030(k) identifies that replacement parking is no longer required when a garage or carport are demolished “in conjunction with the construction of an ADU.” Staff understands this to mean that an applicant may choose to demolish a structure and replace it “in-kind”, as noted in PAMC section 18.09.030(h), or they may relocate it elsewhere on the property and still not replace parking on site.
Demolishing and replacing an accessory structure in kind to create an ADU was protected in the City’s ordinance prior to 2020 when the updated state law incorporated a similar framework.
However, state law and the City’s ordinance were not entirely specific on what may happen should an applicant seek to relocate a structure elsewhere on site and what policies (either Table 1 or 2) would apply.
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Generally, staff and applicants have agreed that one would not be able to relocate a legal, non- conforming structure from one side of a property to another and establish a new non-conforming situation on site. Staff propose to clearly codify this practice and understanding with the suggested language in 18.09.040(j)(v). This language directly captures an instance like the example below and succinctly identifies that an applicant must follow the regulations in Table 2.
Staff believes this will clarify that any type of construction that occurs in this manner must follow the City’s local regulations outlined in Table 2 rather than the state policies outlined in Table 1.
The PTC supported staff’s interpretation and application of this rule in the draft ordinance.
Source: FG Architects
iii. Clarification on Type of JADU Construction and Sanitation Facilities Staff has received multiple questions from applicants and the public since the adoption of the City’s ordinance last year as to whether JADUs can be developed through new construction or only through the conversion of existing spaces. PAMC 18.09.050(a) currently states: “A junior accessory dwelling unit shall be created within the walls of an existing or proposed primary dwelling.”
Through the implementation of the City’s ordinance, the intention was to encourage the creation of more JADUs by allowing JADUs to also benefit from the bonus FAR/Lot Coverage/House Size provisions as well as allowing attached garages to be converted to JADUs and benefit from the replacement parking policies identified in 18.09.040(k). With this understanding, staff indicated to applicants and the public that new construction involving the creation of a JADU would be in keeping with the intent behind the policies adopted by City Council, rather than limiting a JADU to existing within the walls of an existing or new structure. Staff suggests modifying section
18.09.050(a) to align with staff’s implementation of the City’s ordinance and provide clarity to the public.
Additionally, staff has included a new policy that seeks to clarify an already established practice for JADUs that was not apparent in the previously adopted ordinance. Section 18.09.050(b)(iii) seeks to clarify that sanitation facilities are required for JADUs but that they may be shared with Item 14
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the primary unit. This policy has been in place since the establishment of JADUs in the 2017 state and City codes. The practice, however, was not codified.
Adding this clarification will provide an easier reference point for staff, the public, and applicants as it relates to the City’s requirements for sanitation facilities for JADUs. iv. Calculating Gross Floor Area
Applicants have provided many ways of calculating floor area by representing it in whole numbers, to the tenths, hundredth, and thousandth decimal places. General mathematical principals indicate that expressing a number to a thousandth decimal or greater is technically more accurate; however, going beyond the thousands place is not necessarily appropriate when converting between inches and decimals, which often end in hundreds and thousandths decimal numbers (e.g. 4½ inches is expressed as 0.375, 11 inches is expressed as 0.92).
Over time, staff has not established a consistent policy for how floor area should be captured to maintain consistency and accuracy of construction. This is especially important when certain “triggers” occur. Two such triggers are when a building exceeds its allowable floor area/lot coverage allowances, or when a second unit is subject to payment of development impact fees.
Some applicants have proposed 749.99 square foot structures and successfully argued they are not be required to pay development impact fees. In speaking with the Chief Building Official, a contractor would not realistically build a 749.99 square feet structure; it would be built to 750 square feet or slightly larger, given the nature of the construction methods and materials available today.
Staff believes the suggested language in 18.04.030(65)(E) of the draft ordinance would address these issues. It would set a clearer standard for how floor area needs to be expressed in block area diagrams on a plan set. It would also establish a clear and consistent policy for staff and applicants to implement when determining whether a project exceeds a trigger point, as described above. Any ADU equal to or greater than 749.995 square feet would be associated with payment of development impact fees.
v. Clarification on Accessory Buildings with Covered Porches or Patios (>120 sf) In the last few years, there have been a greater number of proposals for 120 square foot accessory buildings with covered porches or patios. PAMC 18.04.030(C) identifies that accessory buildings which exceed 120 square feet in area are included in the overall gross floor area calculations for a site. The use of the term “square feet” is non-specific to the terms “floor area” and “lot coverage” staff commonly use to determine size allowances. The code requires that any addition to this structure beyond 120 square feet immediately triggers an accessory building to count as floor area. This is regardless of whether that specific addition would traditionally count as lot coverage based on its design.
Based on this, an accessory building with a substantially open covered porch or patio would automatically count towards floor area for the site, even though these would be excluded from Item 14
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floor area for the primary house if it is substantially open (see Attachment C for substantially open criteria).
Source: Kohler Architects
Due to this conflict, 120 square foot accessory buildings with covered porches or patios that are substantially open are currently only counted as lot coverage rather than floor area. This interpretation provides a consistent approach for including these spaces as floor area when they are not substantially open. Staff propose codifying this as an exclusion under the Low-Density Residential Exclusions portion of the Definitions (proposed as 18.04.030(a)(65)(D)(ix)). vi. Allowed Accessory Structure Fixtures (PAMC 18.10, 18.12, 18.040) As ADU/JADUs have become more commonplace applications due to relaxed regulations at the state and local level, staff has also recognized an increase in permits for accessory structures.
Some of these structures have started including additional fixtures such as showers (indoor and outdoor), utility lines, washers/dryers, and other facilities that seek to provide the framework for a second unit to be created on site but without committing to creating one.
PAMC 18.12 and 18.40 currently limit accessory structures to only two plumbing fixtures. Some districts, like the RE, R-2, and RMD districts, allow more fixtures for buildings that are less than Item 14
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200 square feet or outside of setbacks for the property. As staff has typically relied on the building code’s definition of a plumbing fixture, it does not always capture fixtures such as a gas line or other appurtenance.
Staff is frequently limited to negotiating with applicants to remove fixtures using vague comparisons of proposals to “something equivalent to an ADU/JADU” as the code does not give more clear direction. Staff is concerned this will encourage individuals to use an accessory building as a housing unit even when a structure is not designed for human habitation.
Due to this, staff propose to better distinguish what are acceptable plumbing fixtures in accessory buildings. The purpose of this language is to target features that may lead to unsafe conditions for human habitation. Staff suggests limiting accessory buildings from having certain plumbing fixtures like a shower and/or bathtub. These will be more challenging and costly to place in a building than a sink and toilet. While approving this code change will make a significant number of previously permitted structures non-conforming, staff believes this will help to reduce the number of illegally constructed units going forward.
ALTERNATIVE ACTIONS
In addition to the recommended action, the City Council may:
1. Provide direction to make further modifications to the ordinance, or
2. Continue the hearing to a date (un)certain to enable staff to perform additional study.
ENVIRONMENTAL REVIEW
The adoption of the Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302, and 15305, because of requirements related to accessory dwelling units as established in Government Code Section 65852.2, and these changes are also likely to result in few additional dwelling units dispersed throughout the City. As such, it can be seen with certainty that the proposed action will not have the potential for causing a significant effect on the environment.
ATTACHMENTS
Attachment A: Draft ADU Ordinance
Attachment B - Task Force Letter
Attachment C - Substantially Open Porches
Attachment D - HCD Letter on ADU Ordinance (2021)
Attachment E - Staff Response to HCD (2022)
Attachment F - HCD Letter on ADU Ordinance (2022)
Attachment G - Staff Response to HCD (2023)
Attachment H - Government Code Section 65852.2
APPROVED BY:
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Chapter 18.09 (Accessory Dwelling Units and Junior Accessory Dwelling Units) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read as follows (additions underlined and deletions struck-through):
18.09.010 Purpose
The intent of this Chapter is to provide regulations to accommodate accessory and junior accessory dwelling units (ADU/JADU), in order to provide for variety to the city's housing stock and additional affordable housing opportunities. These units shall be separate, self-contained living units, with separate entrances from the main residence, whether attached or detached. The standards below are provided to minimize the impacts of units on nearby residents and throughout the city, and to assure that the size and location of such dwellings is compatible with the existing or proposed residence(s) on the site and with other structures in the area.
18.09.020 Applicable Zoning Districts
The establishment of an accessory dwelling unit is permitted in zoning districts when single-family or multi-family residential is a permitted land use. The development of a single-family home, ADU, and/or a JADU on a lot that allows for single-family development shall not be considered a multifamily development pursuant to PAMC Section 18.04.030, nor shall they require Architectural Review pursuant to other sections of Chapter 18.
18.09.030 Units Exempt from Generally Applicable Local Regulations (a) Government Code section 65852.2, subdivision (e) provides that certain units shall be approved notwithstanding state or local regulations that may otherwise apply.
The following types of units shall be governed by the standards in this section. In the event of a conflict between this section and Government Code section 65852.2, subdivision (e), the Government Code shall prevail.
i. An ADU and JADU within the existing space of a single-family dwelling or an ADU within the existing space of an accessory structure (i.e. conversion without substantial addition).
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ii. An ADU and JADU within the proposed space of a single-family dwelling. iii. A detached, new construction ADU on a lot with a proposed or existing single-family dwelling, provided the ADU does not exceed 800 square feet, sixteen feet in height, or four-foot side and rear (i.e. interior) setbacks. iv. ADUs created by conversion of portions of existing multi-family dwellings not used as livable space.
v. Up to two detached ADUs on a lot with an existing multi-family dwelling. (b) The Development Standards for units governed by this section are summarized in Table 1. Regulations set forth in section 18.09.040 do not apply to units created under 18.09.030. The minimum and maximum sizes indicated in Table 1 do not prohibit units that are greater than 800 square feet. These sizes simply serve to distinguish when a unit transitions from regulations set forth in Table 1 and section
18.09.030 to regulations set forth in Table 2 and section 18.09.040.
Table 1: Development Standards for Units Described in Government Code Section 65852.2(e) Single-Family Multi-Family
Conversion of
Space Within
the Existing
Space of a
Single-Family
Home or
Accessory
Structure
Construction of
Attached ADU
Within the
Proposed Space
of a Single-
Family Home
New
Construction of
Detached ADU
Conversion of
Non-Habitable
Space Within
Existing Multi-
family Dwelling
Structure
Conversion or
Construction of
Detached(4) ADU
Number
of Units
Allowed
1 ADU and 1 JADU
25% of the
existing units
(at least one)
2 Minimum
size(1) 150 sf
Maximum
size(1) N/A2 800 sf N/A
Setbacks
N/A, if condition
is sufficient for
fire and safety
4 feet from side
and rear lot
lines;
underlying
zoning for front
setback
N/A
4 feet from side
and rear lot
lines; underlying
zoning for front
setback
Daylight N/A
Underlying zone
standard for
Single Family
Home
(ADU must be
within N/A
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Plane
Maximum
Height(3) N/A
allowable space
of Single-Family
Home) 16(5) N/A 16(5)(6)
Parking None
State Law
Reference65852.2(e)(1)(A)65852.2(e)(1)(A)65852.2(e)(1)(B)65852.2(e)(1)(C)65852.2(e)(1)(D) (1)Lofts where the height from the floor level to the underside of the rafter or finished roof surface is 5' or greater shall count towards the unit’s floor area. (2)New construction must be consistent with allowable space (e.g. FAR, Lot Coverage) of a single family residence, except that up to 150 sf may be added for the purpose of ingress and egress only, without regard to underlying zone standards.
(3)Units built in a flood zone are not entitled to any height extensions granted to the primary dwelling.
(4)Units must be detached from existing primary dwellings but may be attached to each other. (5)A height of 18 feet for a detached ADU on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. An additional two feet in height shall be provided to accommodate a roof pitch on an ADU that is aligned with the roof pitch of the primary dwelling unit. (6)A height of 18 feet for a detached ADU on a lot with an existing or proposed multifamily, multistory dwelling.
(c) Development standards stated elsewhere in this Section or Title 18, including standards related to FAR, lot coverage, and privacy, are not applicable to ADUs or JADUs that qualify for approval under this section. When there is an ADU or JADU attached to an existing or proposed primary dwelling, the shared wall between these units shall contribute to the maximum allowable Floor Area, Lot Coverage, and Maximum House Size of the primary unit. For a single-family home, this measurement shall be taken to the outside stud wall in accordance with Section
18.04.030(a)(65)(D). For a multi-family dwelling, this measurement shall be taken to the outside surface of exterior walls in accordance with Section 18.04.030(a)(65)(B) and (C).
(d) The establishment of accessory dwelling units and junior accessory dwelling units pursuant to this section shall not be conditioned on the correction of non- conforming zoning conditions; provided, however, that nothing in this section shall limit the authority of the Chief Building Official to require correction of building standards relating to health and safety.
(e) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. Nothing in this section shall preclude the Fire Marshal from accepting fire sprinklers as an alternative means of compliance with generally applicable fire protection requirements.
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(f) Rental of any unit created pursuant to this section shall be for a term of 30 days or more.
(g) Attached units shall have independent exterior access from a proposed or existing single-family dwelling. Except for JADUs, attached units shall not have an interior access point to the primary dwelling (e.g. hotel door or other similar feature/appurtenance).
(h) Conversion of an existing accessory structure pursuant to Government Code section 65852.2(e)(1)(A) may include reconstruction in-place of a non-conforming structure, so long as the renovation of reconstruction does not increase the degree of non- compliance, such as increased height, envelope, or further intrusion into required setbacks. Any portion of an ADU that exceeds the envelope of the existing accessory structure shall be subject to Section 18.09.040.
(i) Street addresses shall be assigned to all units prior to building permit final to assist in emergency response.
(j) The unit shall not be sold separately from the primary residence. (k) Replacement parking is not required when a garage, carport, or covered parking structure is converted to, or demolished in conjunction with the construction of, an ADU.
(l) JADUs shall comply with the requirements of Section 18.09.050.
18.09.040 Units Subject to Local Standards
(a) This section shall govern applications for ADUs and JADUs that do not qualify for approval under section 18.09.030 and for which the City may impose local standards pursuant to Government Code section 65852.2, subdivisions (a) through (d). Nothing in this section shall be interpreted to prohibit an ADU of up to 800 square feet, at the heights stated in Table 2, with a four foot side and rear setbacks. (b) The Development Standards for units governed by this section are provided in Table
2. These regulations do not limit the height of existing structures converted into ADU/JADUs unless the envelope of the building is proposed to be modified beyond any existing legal, non-conforming condition.
Table 2: All other Units
Attached Detached JADU
Number of Units
Allowed1 1 1
Minimum size 150 sf
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Maximum size
900 sf (1,000 sf for two
or more bedrooms);
no more than 50% of
the size of the single-
family home
900 sf (1,000 sf for
two or more
bedrooms)
500 sf
Setbacks 4 feet from side and rear lot lines;
underlying zone standard for front setback
Daylight Plane
Underlying zone
standard per
footnote (7)
N/A Underlying zone
standard
Initial Height 8 feet at lot line
Angle 45 degrees
Maximum Height3
Res. Estate (RE) 30 feet
Open Space (OS) 25 feet
All other eligible
zones 16 feet(5)(6)(7)
Underlying zone
standard
Parking None
Square Footage
Exemption when in
conjunction with a
single family home(4)
Up to 800 sf(4) Up to 500 sf(4)
(1) An attached or detached ADU may be built in conjunction with a JADU on a lot with an existing or proposed single family home. One attached or detached ADU may be built in conjunction with an existing or proposed multifamily building.
(2) Lofts where the height from the floor level to the underside of the rafter or finished roof surface is 5' or greater shall count towards the unit’s floor area. (3) Units built in a flood zone are not entitled to any height extensions granted to the primary dwelling.
(4) Lots with both an ADU and a JADU may exempt a maximum combined total of 800 square feet of the ADU and JADU from FAR, Lot Coverage, and Maximum House Size calculations. Any square footage that exceeds this exemption shall contribute to the FAR, Lot Coverage, and (if attached) Maximum House Size calculations for the subject property. This exemption is not afforded to lots with existing or proposed multifamily dwellings. (5) A height of 18 feet for a detached ADU on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. An additional two feet in height shall be provided to accommodate a roof pitch on an ADU that is aligned with the roof pitch of the primary dwelling unit. (6) A height of 18 feet for a detached ADU on a lot with an existing or proposed multifamily, multistory dwelling.
(7) A height of 25 feet or the height limitation in the underlying zone district that applies to the primary dwelling, whichever is lower, for an ADU that is attached to a primary dwelling. These ADUs shall not exceed two stories in height.
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(c) A single-family dwelling shall exist on the lot or shall be constructed on the lot in conjunction with the construction of an ADU/JADU.
(d) ADU and/or JADU square footage shall not be included in FAR, Lot Coverage, and Maximum House Size calculations for a lot with an existing or proposed single family home, up to the amounts stated in Table 2. ADU and/or JADU square footage in excess of the exemptions provided in Table 2 shall be included in FAR, Lot Coverage, and Maximum House Size calculations for the lot.
(d)(e) When there is an ADU or JADU attached to an existing or proposed primary dwelling, the shared wall between these units shall contribute to the maximum allowable Floor Area, Lot Coverage, and Maximum House Size of the primary unit.
For a single-family home, this measurement shall be taken to the outside stud wall in accordance with Section 18.04.030(a)(65)(D). For a multi-family dwelling, this measurement shall be taken to the outside surface of exterior walls in accordance with Section 18.04.030(a)(65)(B) and (C).
(e)(f) Attached units shall have independent exterior access from a proposed or existing single-family dwelling. Except for JADUs, attached units shall not have an interior access point to the primary dwelling (e.g. hotel door or other similar feature/appurtenance).
(f)(g) No protected tree shall be removed for the purpose of establishing an accessory dwelling unit unless the tree is dead, dangerous or constitutes a nuisance under Section 8.04.050. Any protected tree removed pursuant to this subsection shall be replaced in accordance with the standards in the Tree Technical Manual. (g)(h) For properties listed in the Palo Alto Historic Inventory, the California Register of Historical Resources, the National Register of Historic Places, or considered a historic resource after completion of a historic resource evaluation, compliance with the appropriate Secretary of Interior’s Standards for the Treatment of Historic Properties shall be required.
(h)(i) Noise-producing equipment such as air conditioners, water heaters, and similar service equipment that exclusively serves an ADU/JADU may be located anywhere on the site, provided they maintain the underlying front yard setback requirements of the property and, if the property is a corner lot, a 10-foot street-side setback. shall be located outside of the setbacks for the ADU/JADU. All such equipment shall be insulated and housed, except that the Director may permit installation without housing and insulation, provided that a combination of technical noise specifications, location of equipment, and/or other screening or buffering will assure compliance with the city’s Noise Ordinance at the nearest property line. All service Commented [YA7]: Previously recommended by PTC in
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equipment must meet the city’s Noise Ordinance in Chapter 9.10 of the Municipal Code.
(i)(j) Setbacks
(1) Detached units shall maintain a minimum three-foot distance from the primary unit, measured from the exterior walls of structures. (2) No A basement or other subterranean portion that serves of an ADU/JADU shall may encroach into a setback required for the primary dwelling provided the following conditions are met:.
(A) Newly constructed basement walls are no closer than four feet to an adjacent interior side or rear property line.
(B) A new lightwell associated with a basement shall not be placed closer than four feet to an adjacent interior property line. When visible from the right of way, these facilities shall be screened from view with vegetation.
(C) The new basement shall not negatively impact tree roots on the subject property or on adjacent lots such that it would require a protected tree to be removed or cause the protected tree to die. (D) Habitable ADU/JADU basements shall contribute toward the unit’s total allowable floor area. Any floor area in excess of the exemptions provided in this Section shall contribute to the total allowable limits for the site.
(3) Projections, including but not limited to windows, doors, mechanical equipment, venting or exhaust systems, are not permitted to encroach into the required setbacks, with the exception of a roof eave of up to 2 feet. (3)(4) For corner lots developed as a single-family home only, when an existing or proposed primary dwelling unit is expanded or constructed simultaneously with the construction of a new ADU/JADU, all structures may be built to a 10- foot street-side setback and a 16-foot front yard setback, regardless of the presence of a special setback, unless a fire or life-safety regulation requires a greater setback.
(4)(5) When an existing, legal, nonconforming structure is converted or reconstructed to create an ADU/JADU, any portion of the ADU/JADU that is in the same location and falls within the building envelope of the original structure shall not be subject to the development standards stated in this Section. Any portion of the ADU/JADU that is in a different location or Commented [YA9]: Previously recommended by PTC in
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exceeds the envelope of the original structure shall comply with the development standards stated in this Section.
(5)(6) Notwithstanding the development standards stated in Table 2 and paragraph (5) above, when an existing, legal, non-conforming structure is converted in-place to an ADU/JADU, the envelope of the structure may be modified to encroach further into a setback or daylight plane as follows:
(A) The height of the existing structure may be increased by no more than one linear foot in height commensurate to the existing roofline of the structure provided the height of the addition does not exceed 12 feet from grade. The roofline shall not be changed to a style other than what currently exists on the structure.
(B) Each non-conforming wall may be expanded by no more than six inches in thickness based on its existing location and configuration, as measured to exterior surface of the material, to provide for greater insulation and energy requirements provided that a minimum of one foot is maintained between the addition and an adjacent interior property line. An existing wall of a structure that does not currently have a separation of one foot from a parallel property line shall not be expanded outward.
(C) All other additions not specified here shall follow the standard setbacks for the ADU/JADU identified in Table 2.
(j)(k) Design
(1) Except on corner lots, it shall be encouraged but not required that the unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the entranceway to the accessory unit is located in the rear half of the lot. Exterior staircases to second floor units shall be located toward the interior side or rear yard of the property.
(2) Privacy
(A) Second story doors and decks shall not face a neighboring dwelling unit property line. Second story decks and balconies shall utilize screening barriers to prevent views into towards an adjacent interior property lineies. These barriers shall provide be a minimum five-foot, six-inch height, screen wall from the floor level of the deck or balcony and shall not include perforations of any kind that would allow visibility between properties.
(B) Second story w Windows on a second floor, loft, or equivalent elevated space, excluding those required for egress, shall have a five- Commented [YA12]: Previously recommended by PTC in
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Commented [YA13]: Response to HCD direction
Commented [SG14]: PTC Recommended language from
February 20233
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foot sill height as measured from the second-finished floor level, or utilize obscured opaque glazing on the entirety of the window when facing any window that faces an adjacent interior property lineies.
Second story e Egress windows shall utilize obscured opaque glazing on the entirety of the windows which face that face adjacent interior properties.
(C) Second story w Windows on a second finished floor, loft, or equivalent elevated space, shall be offset from neighbor’s windows to maximize privacy.
(D) Where feasible, egress windows on the first and second finished floor of an ADU or JADU shall not face towards an adjacent interior property line. If this is not feasible, then these windows shall utilize opaque glazing on the whole window.
(E) If the first finished floor of an ADU or JADU is two feet or more above grade, then first floor windows shall include the following:
i. Non-egress, operable windows facing an adjacent interior property line shall have a windowsill(s) that start five feet above the first finished floor for the unit;
ii. Non-egress, non-operable windows facing an adjacent interior property line shall have the lower half of window(s) (minimum of five feet above the first finished floor) utilize opaque glazing.
(F) Where feasible, the use of skylights (whether operable or not) shall be used in lieu of operable windows that face adjacent interior properties
(G) No exterior lighting shall be mounted above seven feet. All lighting mounted on walls shall be directed downwards and shall not direct light towards adjacent interior property lines. Any ground lighting shall not direct light upwards to the building or sky.
(k)(l) Parking
(1) Replacement parking is not required when a garage, carport, or covered parking structure is converted to, or demolished in conjunction with the construction of, an ADU.
(2) Replacement parking is required when an existing attached garage, carport, or covered parking structure is converted to a JADU or when a required, existing, uncovered parking space is expanded into by an ADU. These replacement spaces may be provided as uncovered spaces in any configuration on the lot including within the front or street side yard setback for the property.
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(A) The Director shall have the authority to modify required replacement parking spaces by up to one foot in width and length upon finding that the reduction is necessary to accommodate parking in a location otherwise allowed under this code and is not detrimental to public health, safety or the general welfare.
(B) Existing front and street side yard driveways may be enlarged to the minimum extent necessary to comply with the replacement parking requirement above. Existing curb cuts shall not be altered except when necessary to promote public health, safety or the general welfare.
(3) When parking is provided, the unit shall have street access from a driveway in common with the main residence in order to prevent new curb cuts, excessive paving, and elimination of street trees, unless separate driveway access will result in fewer environmental impacts such as paving, grading or tree removal.
(3)(4) When a single-family dwelling unit is permitted simultaneously with the construction of new ADU/JADUs, the primary unit’s covered parking requirements identified in Chapter 18.10 and 18.12 do not need to be provided. Two uncovered parking spaces shall be provided in any configuration on the lot including within the front or street-side setback for the property.
(4)(5) If covered parking for a unit is provided in any district, the maximum size of the covered parking area for the accessory dwelling unit is 220 square feet.
This space shall count towards the total floor area for the site but does not contribute to the maximum size of the unit unless attached to the unit. Any attached garage shall not have an interior access point to the ADU/JADU (e.g. hotel door or other similar feature/appurtenance).
(l)(m) Miscellaneous requirements
(1) Street addresses shall be assigned to all units prior to building permit final to assist in emergency response.
(2) The unit shall not be sold separately from the primary residence. (3) Rental of any unit created pursuant to this section shall be for a term of 30 days or more.
(4) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. Nothing Commented [YA18]: Previously recommended by PTC in
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in this section shall preclude the Fire Marshal from accepting fire sprinklers as an alternative means of compliance with generally applicable fire protection requirements.
18.09.050 Additional Requirements for JADUs
(a) A junior accessory dwelling unit may only be created on a lot in a single-family residential zone with an existing or proposed single family residence. A junior accessory dwelling unit shall be attached to or created within the walls of an existing or proposed primary dwelling.
(b) The junior accessory dwelling unit shall include an efficiency kitchen, requiring the following components: A cooking facility with appliances, and; food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.
i. A cooking facility with appliances shall mean, at minimum a one burner installed range, an oven or convection microwave, a 10 cubic foot refrigerator and freezer combination unit, and a sink that facilitates hot and cold water. ii. A food preparation counter and storage cabinets shall be of reasonable size in relation to a JADU if they provide counter space equal to a minimum 24-inch depth and 36-inch length.
ii.iii. JADUs may share sanitation facilities (bathrooms, laundry facilities, etc.) with the primary unit. In this instance, the floor area and lot coverage associated with shared space shall count towards the primary unit’s maximum allowances only. The combined sanitation facilities between the units shall include shower, toilet, and sink fixtures at a minimum and shall conform to the minimum requirements specified in the Building Code
(c) For the purposes of any fire or life protection ordinance or regulation or for the purposes of providing service for water, sewer, or power, a junior accessory dwelling unit shall not be considered a separate or new unit.
(d) The owner of a parcel proposed for a junior accessory dwelling unit shall occupy as a primary residence either the primary dwelling or the junior accessory dwelling.
Owner-occupancy is not required if the owner is a governmental agency, land trust, or housing organization.
(e) Prior to the issuance of a building permit for a junior accessory dwelling unit, the owner shall record a deed restriction in a form approved by the city that includes a prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, requires owner-occupancy consistent with subsection (d) Commented [YA20]: Previously recommended by PTC
Also responsive to HCD direction
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above, does not permit short-term rentals, and restricts the size and attributes of the junior dwelling unit to those that conform with this section.
18.09.060 Affordable ADU/JADU Pilot Program
(a) This section shall govern applications for ADUs and JADUs that will be deed restricted for a minimum of 8 years to provide affordable rental units for households earning up to 80% of area median income. These units shall be exempt from all development impact fees, regardless of size, up to a maximum of $50,000 unit and a Citywide total of $400,000 per calendar year. To participate in this program, units shall follow the development standards in section 18.09.040 unless otherwise stated here. (b) The City’s affordable housing administrator shall income qualify potential tenants prior to issuing a permit for an affordable ADU/JADU. The property owner shall be responsible for paying the City’s housing administrator to cover the cost associated with documenting a potential tenants income level as well as annually recertifying the tenant’s income.
SECTION 2. Subsection (g) of Section 16.58.030 of Chapter 16.58 (Development Impact Fees) of Title 16 (Building) of the Palo Alto Municipal Code (“PAMC”) is amended to read:
(f) Accessory dwelling units (ADU) less than 750 square feet in size. Any impact fees to be charged for an accessory dwelling unit of 750 square feet or more shall be proportional to the square footage of the primary dwelling unit. Any unit that is deed restricted to be rented at a rate of up to 80% of AMI, in accordance with the City’s established Affordable ADU/JADU program, shall be exempt from all impact fees, regardless of size, up to a maximum of $50,000 per unit and a Citywide total of $400,000 per calendar year;
SECTION 3. Subsections (a)(4) and (a)(65) of Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read:
[. . .]
(4) “Accessory dwelling unit” means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. An ADU bathroom shall include a shower, toilet, and sink fixture at a minimum and shall conform to the minimum requirements specified in the Building Code. An accessory dwelling unit also includes the following:
[. . .]
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(65) “Gross Floor Area” is defined as follows:
[. . .]
(D) Low Density Residential Exclusions: In the RE and R-1 single-family residence districts and in the R-2 and RMD two-family residence districts, “gross floor area” shall not include the following:
[. . .]
(ix) Accessory structures equal to or less than one hundred and twenty square feet in area shall not contribute to floor area provided that any attached porches, patios, or similar features are substantially open; (E) In all districts, gross floor area shall be calculated to the nearest 1000th decimal point and represented and rounded on plans to the nearest 100th decimal point (e.g. 123.456 sf shall be rounded to 123.46 sf). Standard rounding shall apply such that a number of four or less shall be rounded down and a number of five or more shall be rounded up.
SECTION 4. Subsections (b)(5) of Section 18.10.080 (Accessory Uses and Facilities) of Chapter
18.10 (Low-Density Residential) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read:
[. . .]
(5) When located within a required interior yard as permitted by this section, no such No accessory building shall have more than two plumbing fixtures. Accessory buildings shall not be allowed to be turned into habitable space nor shall these structures be allowed to have showers (indoor or outdoor), gas lines, washer/dryers, and/or cooking facilities to be provided inside or attached to the structure, unless the structure is proposed as an ADU/JADU that satisfies all requirements of the Palo Alto Municipal Code.
[. . .]
SECTION 5. Subsections (b)(5) of Section 18.12.080 (Accessory Uses and Facilities) of Chapter
18.12 (Single-Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read:
[. . .]
(5) No such accessory building greater than 200 square feet in size shall have more than two plumbing fixtures. Accessory buildings shall not be allowed to be turned into Commented [YA27]: Previously recommended by PTC in
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habitable space nor shall these structures be allowed to have showers (indoor or outdoor), gas lines, washer/dryers, and/or cooking facilities to be provided inside or attached to the structure, unless the structure is proposed as an ADU/JADU that satisfies all requirements of the Palo Alto Municipal Code. [. . .]
SECTION 6. Subsection (b)(5) of 18.40.050 (Location and Use of Accessory Buildings) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read:
[. . .]
(5) No such accessory building shall have more than two plumbing fixtures. Accessory buildings shall not be allowed to be turned into habitable space nor shall these structures be allowed to have showers (indoor or outdoor), gas lines, washer/dryers, and/or cooking facilities to be provided inside or attached to the structure, unless the structure is proposed as an ADU/JADU that satisfies all requirements of the Palo Alto Municipal Code.
[. . .]
SECTION 7. Subsection (a) of Section 18.10.090 (Basements) of Chapter 18.10 (Low Density Residential) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read:
[. . .]
(a) Permitted Basement Area
Basements may not extend beyond the building footprint and basements are not allowed below any portion of a structure that extends into required setbacks, except to the extent that the main residence is permitted to extend into the rear yard setback by other provisions of this code. Basements which serve the primary unit may not extend under an attached ADU or JADU to the extent those secondary units utilize the bonus floor area, lot coverage, and/or maximum house size exemptions identified in Section 18.09. [. . .]
SECTION 8. Subsection (a) of Section 18.12.090 (Basements) of Chapter 18.13 (Single-Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read:
[. . .]
(a) Permitted Basement Area
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Basements may not extend beyond the building footprint and basements are not allowed below any portion of a structure that extends into required setbacks, except to the extent that the main residence is permitted to extend into the rear yard setback by other provisions of this code. Basements which serve the primary unit may not extend under an attached ADU or JADU to the extent those secondary units utilize the bonus floor area, lot coverage, and/or maximum house size exemptions identified in Section 18.09. [. . .]
SECTION 9. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance.
SECTION 10. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 11. The Council finds that the adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305 because it constitutes minor adjustments to the City’s zoning ordinance to implement State law requirements related to accessory dwelling units as established in Government Code Section 65852.2, and these changes are also likely to result in few additional dwelling units dispersed throughout the City. As such, it can be seen with certainty that the proposed action will not have the potential for causing a significant effect on the environment.
SECTION 12. This ordinance shall be effective on the thirty-first date after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
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ABSTENTIONS:
ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
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City Of Palo Alto ADU Ordinance, First Reading, Meeting Date 10/5/2020 Agenda Item #8
To the Members of The Palo Alto City Council:
We want to begin by expressing commendation for what has been done to date by Council and PTC but
particularly by Staff. This is a complex political and technical topic and we consider the ordinance to be
mostly in alignment with the State Statutes. We applaud the effort where choices have been made to
exceed limitations in a reasonable way, and understand clearly the boundaries established by State
legislation.
What we need to remember is that the State is promoting this legislation to incentivize and streamline the
creation of ADUs. We should also remember to view all of this through the local lens of prioritizing
residential development as a clearly stated Palo Alto goal. As professionals, we seek a clear and precise
set of rules we can rely on in the design process to achieve a predictable result for our clients.
A number of individuals spoke in warning when we came before Council in January, and we have been
proven correct in stating Palo Alto's urgency ordinance was seriously flawed. Many elements did not
properly conform to State legislation. Since then, Staff has adjusted their interpretations, in some cases
after being challenged by the professional community, and partly when influenced by input from HCD.
The updated document before you makes good progress toward alignment, but we still fall short in some
important areas.
The Palo Alto ADU Task Force (PAADUTF), now approximately 20 individuals and growing, was created
out of a grassroots desire for peer communication between professionals who are active in ADU
development. Sharing information regarding regulatory interpretations, design methodology, and
construction strategy, this group came together to evaluate the August 17 staff report and associated
ordinance language. Unfortunately, we were not aware of the May 27 PTC hearing and recognize this
was a missed opportunity to interact with staff. Over the course of five meetings conducted during August
and September, the group developed a narrative along with an annotated review of the proposed
ordinance. As indicated, two additional meetings were conducted with staff included to review and discuss
the information. Several significant points from that discussion have been captured in your staff report.
There are others that were not, that we nonetheless feel are critical to implement as part of this update.
Through direct and frequent interaction with HCD and supported by other experts active in ADU
regulatory action, The PAADUTF has identified several specific areas where the proposed local ordinance
departs from the State intent. We recognize Staff feels they have rigorously evaluated the language
presented to you tonight, but we do not believe they are entirely correct. The HCD ADU Handbook,
released just last week, seems to confirm a few areas where the proposed language is in conflict with
HCD’s guidance. As you have heard, if inconsistency is not corrected, there is a significant possibility the
ordinance will be challenged and potentially deemed invalid.
The most significant issue is the approach taken in the ordinance regarding the Statewide Exemption
ADU and how that language relates to all other units, particularly those exceeding 800 square feet.
Gov. Code, § 65852.2, subd. (c)(2)(C)
“Any other minimum or maximum size for
an accessory dwelling unit, size based upon a percentage of the proposed or
existing primary dwelling, or limits on lot coverage, floor area ratio, open space,
and minimum lot size, for either attached or detached dwellings that does not
permit at least an 800 square foot accessory dwelling unit that is at least 16 feet in
height with four-foot side and rear yard setbacks to be constructed in compliance
with all other local development standards.”
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Staff's interpretation of this section includes a vision that the Exemption Unit is an isolated obligation. In
fact, the Statute language says clearly
“
at least
”
, so we have been told any attempt at creating limitations
for units which are larger (daylight plane restrictions, placement on the lot, a limitation for subterranean
construction, or basement construction) is simply inconsistent with the State Statute.
Another significant departure is the approach taken in regard to 2-story construction. Staff is seeking to
create limits on the basis of privacy, but the restrictions they have offered are inconsistent with the
statutes. It is important to remember that the State put these new rules in place to shake up the norms,
and we need to understand and align with that intent. As an example, HCD has described a scenario
where if a lot is so small that 800 sf cannot be accommodated on one level, then 2-stories can be the only
option. Because of this, HCD has confirmed there can be no restriction against 2-story units, under any
condition. Whether in conformance with an Exemption ADU or larger, 2-story construction must be
embraced. We would offer that Santa Cruz has done an excellent job in this area and has elected to allow
22’ of height with additional restrictions for distance from the property line once beyond 16’ of height.
(https://www.cityofsantacruz.com/government/city-departments/planning-and-community-development/ac cessory-dwelling-units-adus)
Again, there are a number of specific areas of improvement in the proposed ordinance, and we applaud
that. What we ask of you tonight is the consideration of 15 areas of concern we identify below, some of
which have already been described by Staff. We believe all of these are important and nuanced topics
that are truly necessary to implement. Some are changes only included to simplify the development of
ADUs, but others are very technical responses to costly or avoidably complex limitations. We ask that you
remember our pace is 1,000 units short of our RHNA requirement and that we need to do better and
move faster. This set of considerations provides an easy way to encourage the development of additional
units with minimal collateral impact when compared to larger, more dense projects with their significant
timelines and approval hurdles.
15 Suggestions for Consideration:
1. Alignment with Gov. Code, § 65852.2, subd. (c)(2)(C)
a.
Remove language that improperly restricts daylight plane, placement on the lot, limitation for
subterranean construction, or basement construction.
2. Two-Story
a.
Provide definition for subterranean 1
st
level construction. (1
st
level partially recessed in the
ground)
i.
Clarify how deep this can be without being interpreted as a ‘basement’
1. Suggest 36” max below existing natural grade as the threshold
b.
Confirm Staff’s recommendations for privacy management
i.
Windows obscured when sills are below 5’ above adjacent finish floor on walls parallel to
property lines when the structure is within 8’ of a property line
ii.
Set sills at 5’ above adjacent finish floor on walls parallel to property lines when the structure
is within 8’ of a property line
iii.
Sleeping rooms endeavor to have egress windows located on walls non-adjacent to property
lines
iv.
Use of (operable) skylights in bathrooms and other spaces where windows could be
considered optional
v.
No exterior lighting mounted above 7’ on walls adjacent to property lines to keep it at or
below maximum fence height
c.
Consider adopting language similar to that used in Santa Cruz: